<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>jun02n30d.txt
<DESCRIPTION>COMBINED SEMI-ANNUAL JUNE 2002
<TEXT>
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
SEMI-ANNUAL REPORT
JUNE 30 , 2002
THE WRIGHT MANAGED EQUITY TRUST
o Wright Selected Blue Chip Equities Fund
o Wright Major Blue Chip Equities Fund
o Wright International Blue Chip Equities Fund
THE WRIGHT MANAGED INCOME TRUST
o Wright U.S. Treasury Money Market Fund
o Wright U.S. Government Near Term Fund
o Wright U.S. Government Intermediate Fund
(formerly Wright U.S. Treasury Fund)
o Wright Total Return Bond Fund
o Wright Current Income Fund
THE WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
<PAGE>
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
-------------------------------------------------------------------------------
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS CONSISTS OF THREE 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 EIGHT FUNDS HAVE
DISTINCT INVESTMENT OBJECTIVES AND POLICIES. THEY CAN BE USED INDIVIDUALLY 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. SOME OF THE FUNDS
OFFER TWO CLASSES OF SHARES DESIGNATED AS INSTITUTIONAL SHARES AND STANDARD
SHARES.
APPROVED WRIGHT INVESTMENT LIST
Securities selected for equity portfolios are drawn from investment lists
developed by Wright Investors' Service (Wright). Using bottom-up fundamental
analysis, Wright first identifies companies suitable for fiduciary use as
"investment grade." These make up the Investment Grade Investment List (IGIL).
These companies are further screened against Wright's quality standards which
have evolved since the 1960s. Those meeting or exceeding these standards are
promoted to the Approved Wright Investment List or AWIL. These companies, in
Wright's opinion, exhibit superior investment characteristics. There are
separate lists for U.S. companies, non-U.S. companies, and fixed income
securities. All the companies on the AWIL are soundly financed "Blue Chips" with
established records of earnings profitability and equity growth. All have
established investment acceptance and active, liquid markets. Companies which do
not meet this quality criteria, but which are included in a major stock market
index and which meet acceptable marketability and financial strength standards
may be used when necessary to reduce benchmark tracking error but a majority of
the stocks in any portfolio are selected from the AWIL.
THREE 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 whose current operations
reflect defined, quantified characteristics which have been determined to offer
comparatively superior total investment returns over the intermediate term. The
fund attempts to outperform the Standard & Poor's Mid-Cap 400 Index.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC) seeks to enhance total investment
return of price appreciation plus income by providing management of a broadly
diversified portfolio of equities of larger well-established companies meeting
strict quality standards. In selecting companies for this portfolio, Wright
selects, based on quantitative formulae, those companies which are expected to
do better over the intermediate term. The quantitative formulae takes into
consideration factors such as over/under valuation and compatibility with
current market trends. Investments in the portfolio are control weighted in the
selected securities and industries. The fund attempts to outperform the Standard
& Poor's 500 Index.
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.
<PAGE>
A MONEY MARKET FUND
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) 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. GOVERNMENT NEAR TERM FUND (WNTB) is a diversified portfolio
concentrating on bonds and other obligations of the U.S. Government and U.S.
Government Agencies with an average weighted maturity of between one and three
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. GOVERNMENT INTERMEDIATE FUND (WUSGI) is invested in U.S. government
obligations and maintains an average maurity of from two to six years. The fund
does not invest in derivatives. Assets are allocated on the basis of Wright's
economic outlook and expected trend in short-term interest rates. Dividends are
accrued daily and paid monthly.
WRIGHT TOTAL RETURN BOND FUND (WTRB) is a diversified portfolio of investment
grade 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 including GNMAs to produce a high level of income
with reasonable stability of principal. The fund reinvests all principal
payments. Dividends are accrued daily and paid monthly.
<PAGE>
TABLE OF CONTENTS
-------------------------------------------------------------------------------
Investment Objectives....................................inside front cover
Letter to Shareholders....................................................2
Management Discussion.....................................................3
FINANCIAL STATEMENTS
THE WRIGHT MANAGED EQUITY TRUST
Wright Selected Blue Chip Equities Fund.........................10
Wright Major Blue Chip Equities Fund............................12
Wright International Blue Chip Equities Fund....................14
Financial Highlights............................................16
Notes to Financial Statements...................................20
THE WRIGHT MANAGED INCOME TRUST
Wright U.S. Treasury Money Market Fund..........................25
Wright U.S. Government Near Term Fund...........................27
Wright U.S. Government Intermediate Fund........................29
Wright Total Return Bond Fund...................................31
Wright Current Income Fund......................................33
Financial Highlights............................................35
Notes to Financial Statements...................................41
THE WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
Selected Blue Chip Equities Portfolio...........................48
International Blue Chip Equities Portfolio......................50
U.S. Government Near Term Portfolio.............................52
U.S. Government Intermediate Portfolio..........................54
Current Income Portfolio........................................56
Supplementary Data..............................................58
Notes to Financial Statements...................................61
INVESTMENT PORTFOLIOS
Wright Major Blue Chip Equities Fund (WMBC).....................66
Wright Total Return Bond Fund (WTRB)............................69
Selected Blue Chip Equities Portfolio (SBCP)....................71
International Blue Chip Equities Portfolio (IBCP)...............74
Wright U.S. Treasury Money Market Fund (WTMM)...................76
U.S. Government Near Term Portfolio (NTBP)......................77
U.S. Government Intermediate Portfolio (USGIP)..................78
Current Income Portfolio (CIFP).................................79
<PAGE>
LETTER TO SHAREHOLDERS
-------------------------------------------------------------------------------
July, 2002
Dear Shareholders:
After a fairly neutral first quarter, sellers regained the upper hand in
the global stock markets during the second quarter of 2002. In the U.S., almost
all of the S&P 500's post-9/11 recovery was gone by mid-year, and the rest
evaporated in July. While the industrial stocks that make up the Dow Jones
Industrial Average still retain a portion of their gains, the S&P 500 hit its
lowest level since January 1998 and Nasdaq has fallen to a 5-year low.
All told, U.S. stock prices fell almost 15% in Q2, the worst of any of the
major markets in dollar terms. With the latest declines, essentially all of the
"irrational exuberance" that Alan Greenspan worried about in 1996 is gone from
the U.S. stock market. Certainly the worst excesses of the Internet bubble are
now history: AOL (down 87%), Amazon (down 88%), Yahoo (down 95%) and other
stocks such as these are now priced at small fractions of their peak values.
These dramatic collapses have had a devastating effect on investor psychology.
There is also the taint of accounting frauds such as Enron and WorldCom that
needs to be overcome. Outside the U.S., the story was quite a bit better during
the second quarter but mostly because local currency losses in equities were
mitigated by the appreciation of foreign currencies against the dollar.
In terms of investor wealth, the bond market provided a positive offset to
the first half's weakness in stocks. The Lehman U.S. Aggregate returned almost
5% for the first half, most of it coming in the second quarter. Expectations
that the Federal Reserve would begin raising interest rates during the second
quarter were pushed out to Q4 and then to 2003, and now talk of rate cuts
proliferates. Our own guess is that the weak stock market, softening in economic
growth, and absence of serious inflation signals will keep the Fed in an
accommodative mood well into next year. Interest rates are likely to rise over
the next 12 months, but by a manageable amount. Despite the flight-to-safety
nature of the market in Q2, we believe that investment-grade corporate bonds and
other spread products will provide positive incremental returns over Treasury
securities.
On the economic front, the news is better than the markets suggest. The
manufacturing sector has turned up, housing remains strong, consumers are still
visiting the stores, and auto sales rebounded in June and (especially) July. The
index of leading economic indicators is up 2.6% over the past 12 months,
suggesting real GDP growth on the order of 2.5% to 3% (annual rate) going
forward. While Q2 ran under that rate, that was as much a reflection of the
artificially strong Q1 (+5.0%) as it was a sign of a flattening economic
expansion.
The reversal of the rally off last September's market lows has proved to be
more than a brief hiatus. In part, this reflects investor fears that there may
be more WorldComs waiting to happen. When firms start delivering profit gains in
line with expectations in this year's second half, investors should begin to see
the corporate financial scandals as the anomalies they are. Stock prices
typically swing from one extreme of valuation to the other over a market cycle,
particularly after market bubbles, so there may yet be some downside risk left
in equities. This concern keeps us from going to a more aggressive allocation to
equities or shorter bond durations when our economic outlook says such moves are
warranted. I invite clients to follow our investment thinking on the Wright web
site, www.wrightinvestors.com, and ask that you let me know if there is any way
that we make the site better.
Sincerely,
/s/Peter M. Donovan
---------------------
Peter M. Donovan
President
<PAGE>
MANAGEMENT DISCUSSION
-------------------------------------------------------------------------------
EQUITY FUNDS
The stock market got off to a weak start in the second quarter of 2002 and the
mood never improved. The potential for disruptions from turmoil in the Middle
East and the battle against terrorism strained investor confidence. But the main
downer for the market last quarter was a lack of confidence that the better
profits that Wall Street is forecasting for the second half of this year will
actually materialize. To some degree this reflected a slowing in the economic
recovery since the first quarter. Adding to the doubts was a palpable distrust
of corporate America, which deepened with the revelations of new corporate
misdeeds in the second quarter.
Nasdaq essentially closed the first six months back at last September's low. The
Nasdaq Composite lost 21% in price in the second quarter and 25% for the first
six months of 2002. The S&P 500, after a flat first quarter, lost 14% in the
second. The Dow fared a little better, with losses of 11% for the quarter and 8%
for the six months. It was hard to find any sector that investors had any
enthusiasm for. All ten S&P 500 industry sectors declined, with technology
(-26%) and telecom (-24%) the worst. Although continuing to outperform the S&P
500, the S&P MidCap 400 (-9.5%) and SmallCap 600 (-6.7%) gave back all of their
first-quarter gains. Investors venturing outside of the United States got some
help from the 8% depreciation of the dollar against a basket of major currencies
in the second quarter. The MSCI World ex U.S. total return index declined 11% in
local currencies for the quarter but just 2% in dollars.
WIS expects that the economy will continue to expand at a modest pace in the
second half of 2002. Better demand, cost cutting, the benefits of productivity
and even some price relief all should contribute to healthier corporate profits
in the second half of the year. Yet, despite the promise of better things to
come, it shouldn't be much of a surprise that the stock market has gotten off to
a rocky start in the third quarter. The new quarter brought more reports of
fuzzy corporate accounting (WorldCom being the most notorious recent case),
which have reinforced investors' skepticism about profit forecasts. Investors
want hard evidence that Wall Street's expectations aren't just a pipe dream.
If Wall Street's forecasts are met, stocks are undervalued by about 15%,
according to the Fed's valuation model. But after a market bubble that has
resulted in an extreme of overvaluation, it is not unusual for stocks to swing
to an extreme of undervaluation. Add in the current downbeat mood of investors
and you clearly have some further downside risk in equities. We do expect,
however, that mounting evidence that economic and profit recovery are taking
hold will gradually boost investor confidence in the second half of the year.
<TABLE>
<CAPTION>
2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
-----------
Total Return Q2 6 Mos. Year Year Year Year Year Year Year Year Year Year Year
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selected Blue Chips (WSBC) -9.3% -4.8%-10.2% 10.8% 5.8% 0.1% 32.7% 18.6% 30.3% -3.5% 2.1% 4.7% 36.0%
Major Blue Chips (WMBC)
Standard Shares -11.6% -12.7%-16.9% -12.5% 23.9% 20.4% 33.9% 17.6% 29.0% -0.7% 1.0% 8.0% 38.9%
Int'l Blue Chips (WIBC)
Standard Shares -2.9% -1.1%-24.2% -17.6% 34.3% 6.1% 1.5% 20.7% 13.6% -1.6% 28.2% -3.9% 17.2%
Institutional Shares -3.1% -1.3%-24.1% -17.6% 34.5% 7.5% -6.4%* - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
*: For the period from July 7, 1997 (inception of offering of institutional
shares) to December 31, 1997.
</TABLE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
For the first half of 2002, the Wright Selected Blue Chip Fund (WSBC) lost 4.8%,
better than the Russell and Morningstar benchmarks (down 5.7% and 6.7%,
respectively) though behind the S&P MidCaps (-3.2%).
<PAGE>
Although an overweight position in technology stocks hurt the fund's performance
in the second quarter, this was more than offset by the positive effect of stock
selection in most other industry sectors. The most positive contribution to the
Fund's return in the quarter was from the consumer staples sector, with good
showings from Dreyers Grand Ice Cream (the object of a takeover bid) and Tyson
Foods. The Fund's holdings in energy and health care also had considerably
smaller losses than the S&P MidCap energy and health care sectors.
As Q3 began, WSBC's position had become more conservative through a reduction of
its holdings in technology to near market weight. The Fund still stands to
benefit from improvement in the economy, with an overweight position in consumer
discretionary stocks and a market weighting in industrials. Earnings growth
prospects for WSBC holdings are slightly better than for the S&P MidCap 400.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
The Wright Major Blue Chip Fund (WMBC) is managed as a blend of the mostly
large-cap value and growth stocks in the S&P 500. For the first half of 2002,
the WMBC lost 12.7%, less than the S&P 500's 13.1% loss and the Morningstar
benchmark's 13.3%. The WMBC has outperformed the Morningstar peer-group average
over the last one, three, five and ten-year periods. With big-cap stocks
retreating in the second quarter, the WMBC Fund lost 11.6% for the period. This
was a smaller loss than the S&P 500 (-13.4%) or an average of Morningstar
large-cap blend funds (-13.2%) had for the period.
During the second quarter, the WMBC Fund's sector weighting was close to the S&P
500's, although the Fund did get some benefit from an underweight position in
the lagging telecom sector. Good stock selection provided most of the WMBC's
excess return compared to the S&P 500. The biggest contribution came from the
Fund's selection in consumer discretionary stocks (e.g., Centex, Newell
Rubbermaid and Liz Claiborne, all rising more than 10%). In the industrial
sector, an overweighting in defense-related stocks General Dynamics, ITT and
Northrop was a positive factor. The WMBC outperformed the S&P 500 in the health
care sector by concentrating in the supply and service areas rather than
pharmaceutical stocks.
Value stocks outperformed growth stocks in the S&P 500 during the second
quarter. The WMBC Fund was slightly tilted toward value in Q2 and is maintaining
that position at the start of the third quarter. Forecasts of next 12 months'
earnings growth and long-term growth for WMBC holdings are better than for the
S&P 500, while the portfolio's average forward P/E multiple is lower.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
For the first two quarters of 2002, the Wright International Blue Chip Fund's
(WIBC) loss of 1.1% was smaller than those of the MSCI benchmark (-1.7%) and the
Morningstar peer-group average (-1.4%) and more than ten percentage points ahead
of the S&P 500. Over the past 12 months, WIBC has lost 8.5%, less than MSCI and
Morningstar, both down 9.4%, and less than half the S&P 500's 17.9% loss. With
the help of a depreciating dollar, international stocks outperformed U.S. stocks
in the second quarter of 2002 for the second quarter in a row. The WIBC lost
2.9% in the second quarter of 2002, well ahead of the returns earned by U.S.
stock market averages. WIBC was slightly behind the MSCI World ex U.S. index,
which lost 2.2% for the quarter, and a Morningstar average of international
equity funds, which lost 2.1%.
Much of the Fund's shortfall in the second quarter relative to the MSCI World ex
U.S. benchmark was due to its underweight position in Japan, which was one of
the world's better performing markets in dollar terms in Q2. The stocks selected
in Japan did well, and overall stock selection was a positive factor. Being
underweight in technology was also a plus for the quarter. The WIBC Fund remains
underweight in Japan at the start of the Q3, in light of the risk posed to
Japan's export-based recovery by the rising yen. The Fund is overweight in the
euro-zone, which appears to have better growth prospects, and remains
underweight in technology.
<PAGE>
FIXED-INCOME FUNDS
After two quarters of essentially break-even performance, bonds were firmly on
the plus side in the second quarter of 2002. Bonds benefited from signs that the
pace of economic recovery had ratcheted down from the first quarter and from
continuing good news on inflation. Comments from the Federal Reserve, which kept
monetary policy unchanged in the second quarter, were also reassuring, as they
indicated the Fed feels no urgency to raise rates. In addition, Treasury bonds
had a strong appeal as a safe haven for worried investors. The yield on the
ten-year Treasury bond declined by 60 basis points for the second quarter, more
than recouping its first quarter rise. Over the April-June period, the yields on
Treasuries in the two- to five-year maturity range declined even more, in the
area of 80-90 basis points.
After lagging other fixed-income sectors in the first quarter, Treasuries
starred in the second with a 4.5% return. The Lehman Brothers U.S. aggregate
bond index, which includes all investment-grade fixed-income sectors, returned
3.7% in the second quarter after a flat first quarter. Given the quarter's
deepening distrust of corporate America on the part of investors, it is not
surprising that corporate bonds lagged Treasuries with a 2.7% return for the
three months, or that better returns tracked with higher quality in the
corporate sector for the period. Mortgage-backed issues averaged a return of
3.5% in the second quarter.
It is likely to be the fourth quarter at the earliest before the Federal Reserve
starts to raise interest rates. With the economic recovery expected to proceed
at a measured pace, WIS expects inflation to move up only slightly over the next
12 months or so. Even with no aggressive Fed tightening on the horizon, WIS
expects bond yields to edge modestly higher over the next few quarters. We
continue to see the selective use of spread products enhancing returns in
fixed-income portfolios.
<TABLE>
<CAPTION>
2002 2001 2000 1999 1998 1997 1996 1995 1994 199 1992 1991
-----------
Total Return Q2 6 Mos. Year Year Year Year Year Year Year Year Year Year Year
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Treasury Money
Market (WTMM) 0.4% 0.9% 3.7% 5.4% 4.3% 4.7% 4.8% 4.9% 5.3% 3.6% 2.5% 3.3% n.a.
U.S. Gov. Near-Term
Bonds (WNTB) 2.5% 2.4% 6.8% 6.9% 1.9% 6.0% 5.9% 3.9% 11.9% -3.1% 8.0% 6.3% 13.1%
U.S. Gov. Intermediate Bonds
(WUSGI) 3.6% 2.8% 5.4% 12.6% -4.0% 10.0% 9.1% -1.2% 28.2% -8.6% 15.9% 7.1% 17.6%
Total Return Bonds
(WTRB) 3.2% 2.5% 5.0% 10.6% -3.9% 9.6% 9.2% 0.9% 22.0% -6.6% 11.0% 7.1% 15.4%
Current Income (WCIF)
Standard Shares 2.8% 3.8% 7.2% 10.3% 0.5% 6.5% 8.6% 4.4% 17.5% -3.3% 6.6% 6.7% 15.3%
Institutional Shares 2.9% 4.0% 7.3% 10.6% 0.6% 6.6% 4.4%* - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
*: For the period from July 7, 1997 (inception of offering of institutional
shares) to December 31, 1997.
</TABLE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
In the first half of 2002, The Wright U.S. Treasury Money Market Fund (WTMM)
matched 90-day T-bills with a 0.9% return, while topping the average money
market fund's 0.6%. The yield on 90-day Treasury bills declined ten basis points
in the second quarter of 2002. The WWTMM returned 0.4% for the period, the same
as 90-day T-bills and a little ahead of the 0.3% returned by the average
Treasury money market fund. It now seems likely that the Fed will delay
tightening its monetary policy until at least the fourth quarter of 2002. Under
this scenario, money market returns will probably stay in the current range for
the rest of this year and then gradually escalate during 2003.
<PAGE>
WRIGHT U.S. GOVERNMENT NEAR TERM FUND
The Wright U.S. Government Near-Term Fund (WNTB), which just about broke even in
the first quarter, returned 2.4% for the first six months of 2002, topping the
2.2% for the Morningstar peer-group average but slightly behind the 2.5%
reported for the Lehman index. The WNTB returned 2.5% in the second quarter of
2002, matching the return of the Lehman 1-3 year government bond index and
slightly ahead of the 2.3% of an average of Morningstar government near-term
bond funds. The WNTB's maturity is in the two-year range. In the latest quarter,
it benefited from the 90-basis point decline in Agency and Treasury yields in
this maturity range. At quarter end, the Fund has about 70% of its assets in
Agency issues, 3% in mortgage-backed securities, and the rest in Treasuries.
WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND
During the second quarter, the Wright U.S. Treasury Bond Fund was repositioned
as an intermediate maturity fund, and its name was changed accordingly. The
Wright U.S. Government Intermediate Fund (WUSGI) returned 3.6% for the second
quarter, compared to 3.9% for both the Lehman U.S. government intermediate bond
index and a Morningstar average of Treasury bond funds. For the year to date,
this Fund (the Wright U.S. Treasury Bond Fund in Q1) returned 2.8%, compared to
3.6% for both the Lehman government intermediate and Lehman Treasury bond
averages and 3.1% for the Morningstar benchmark.
The Fund, which formerly held only Treasury bonds, is now about 45% invested in
government agency issues, in line with the Lehman intermediate government
benchmark; it also has a small position in mortgage-backed securities. The WUSGI
started the second quarter with an average duration of 3.3 years and a maturity
of 4.9 years. By quarter end, they were slightly lower, at 3.2 and 4.8 years,
respectively. The Fund's duration is currently in line with that of the Lehman
benchmark; the current bias is toward a shorter duration in anticipation of
higher interest rates ahead.
WRIGHT TOTAL RETURN BOND FUND
For the first six months, the Wright Total Return Bond Fund (WTRB), a
diversified bond fund, returned 2.5%, which compared with 3.8% for the Lehman
benchmark and 3.3% for the Morningstar average. In the second quarter of 2002,
the WTRB returned 3.2% compared to the Lehman U.S. Aggregate Bond index's 3.7%
gain and a 3.6% return for an average of Morningstar total return bond funds.
The WTRB's second-quarter gain more than made up for the first quarter's loss.
WTRB's slight underperformance in the second quarter reflected some
issue-specific weakness in its corporate holdings and a modestly underweight
position in Treasuries, which were the strong sector for the quarter. At quarter
end, the WTRB was invested 17% in Treasuries, compared to 21% for the Lehman
aggregate. The WTRB Fund also held corporate (34%), mortgage-backed (32%),
agency (11%), and asset-backed (4%) issues. The Fund's duration was shortened to
4.1 years in the quarter, compared to 4.3 for the benchmark. In the near-term,
the Fund is likely to continue to stay short and to overweight spread products.
<PAGE>
WRIGHT CURRENT INCOME FUND
The Wright Current Income Fund (WCIF) is invested almost entirely in GNMA issues
(mortgage-based securities, known as Ginnie Maes, with explicit credit backing
from the Federal government). In the second quarter, mortgage-backed issues
lagged Treasury bonds but outperformed corporates. For the latest three months,
WCIF returned 2.8%, lagging the 3.2% reported for the Lehman Ginnie Mae index
and the 3.3% averaged by Morningstar's government mortgage funds. WCIF is also
slightly behind for the year to date, returning 3.8% compared to 4.3% for the
Lehman benchmark and 4.0% for the Morningstar average.
In anticipation of higher interest rates and therefore lower prepayment risk,
the CIF was positioned toward higher coupon issues in the second quarter. As
yields fell in the quarter, however, concern about prepayments increased, and
higher-coupon issues underperformed lower coupon issues. WIS is still
anticipating that interest rates will edge up as the year progresses in response
to a stronger economy. At quarter end, the indicated annual yield on this Fund
was 5.5%.
U.S. SECURITIES MARKETS -------------------------------------------------------
The Dow Jones Industrial Average chart shows the point changes in the average
which consists of 30 major NYSE industrial companies and is a price-weighted
arithmetic average, with the divisor adjusted for stock splits. The yield
chart shows the basis point changes in the U.S. Treasury bond which is the
benchmark U.S. Treasury bond with a maturity of 10 years.
The following plotting points are used for comparison in the mountain charts.
Date Dow Jones U.S. 10 Year
Industrial Average Treasury Bond Yield
12/31/92 3301.11 6.70%
12/31/93 3754.09 5.83%
12/31/94 3834.44 7.84%
12/31/95 5117.12 5.58%
12/31/96 6448.27 6.43%
12/31/97 7908.25 5.75%
12/31/98 9181.43 4.65%
12/31/99 11,497.12 6.44%
12/31/00 10,786.85 5.11%
12/31/01 10,021.50 5.00%
06/30/02 9,243.26 4.80%
--------------------------------------------------------------------------------
<PAGE>
WRIGHT MANAGED EQUITY TRUST
-------------------------------------------------------------------------------
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments in portfolio, at value
(identified cost, $43,295,552)(Note 1A) $ 42,983,517
Receivable for fund shares sold......... 39,213
Receivable from administrator........... 26,091
------------
Total assets.......................... $43,048,821
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 1,036
Accrued expenses and other liabilities.. 5,122
------------
Total liabilities..................... $ 6,158
------------
NET ASSETS................................ $43,042,663
============
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................... $37,964,211
Accumulated undistributed net realized gain
on investments (computed on the basis of
identified cost)....................... 4,589,753
Unrealized depreciation of investments
(computed on the basis of identified cost) (312,035)
Undistributed net investment income..... 800,734
------------
Net assets applicable to outstanding
shares................................ $43,042,663
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 4,048,311
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $ 10.63
============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Income -
Dividend income allocated from portfolio $ 159,139
Interest income allocated from portfolio 450
Expenses allocated from portfolio...... (212,213)
------------
Investment loss....................... $ (52,624)
------------
Expenses -
Administrator fee (Note 2)............. $ 4,533
Compensation of Trustees not employees of the
investment adviser or administrator... 3,700
Custodian fee (Note 1D)................ 7,499
Distribution expenses (Note 3)......... 56,656
Transfer and dividend disbursing agent fees 14,191
Audit services......................... 10,820
Legal services......................... 2,848
Printing............................... 1,497
Registration costs .................... 6,335
Miscellaneous.......................... 3,430
------------
Total expenses........................ $ 111,509
------------
Deduct -
Preliminary reduction of distribution expenses
by principal underwriter (Note 3) .... $ (14,397)
Preliminary allocation of expenses to
investment adviser.................... (26,091)
------------
Total deductions...................... $ (40,488)
------------
Net expenses........................ $ 71,021
------------
Net investment loss............... $ (123,645)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions from
portfolio (identified cost basis)...... $ 4,550,922
Change in unrealized appreciation
of investments ........................ (6,669,503)
------------
Net realized and unrealized loss of
investments........................... $(2,118,581)
------------
Net decrease in net assets from
operation............................ $(2,242,226)
============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED EQUITY TRUST
---------------------------------------------------------------------------------------------------------------------------------
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment loss........................................................ $ (123,645) $ (188,134)
Net realized gain on investments........................................... 4,550,922 1,782,136
Change in unrealized depreciation of investments........................... (6,669,503) (7,272,772)
------------ ------------
Net decrease in net assets resulting from operations..................... $ (2,242,226) $ (5,678,770)
------------ ------------
Distributions to shareholders (Note 1F) -
From net realized gain..................................................... $ (1,680,807) $ (2,013,498)
------------ ------------
Net increase in net assets from fund share transactions (Note 4)............. $ 1,083,039 $ 2,373,684
------------ ------------
Net decrease in net assets................................................... $ (2,839,994) $ (5,318,584)
NET ASSETS:
At beginning of period....................................................... 45,882,657 51,201,241
------------ ------------
At end of period............................................................. $ 43,042,663 $ 45,882,657
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ 800,734 $ 924,379
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
-------------------------------------------------------------------------------
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)+
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $78,482,207
Unrealized depreciation............... (2,073,416)
------------
Total investments, at value (Note 1A)... $76,408,791
Cash.................................... 811
Receivable for investments sold......... 2,803,817
Receivable for fund shares sold......... 23,052
Dividends and interest receivable....... 101,772
Receivable from investment adviser...... 300
Other assets............................ 720
------------
Total assets.......................... $79,339,263
------------
LIABILITIES:
Payable for investments purchased....... $ 2,362,044
Payable for fund shares reacquired...... 154,380
Notes payable........................... 289,000
Transfer agent fee...................... 8,754
Accrued expenses and other liabilities.. 9,935
------------
Total liabilities..................... $ 2,824,113
------------
NET ASSETS................................ $76,515,150
============
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................... $107,384,442
Accumulated net realized loss on
investments (computed on the basis
of identified cost).................... (28,634,396)
Unrealized depreciation of investments
(computed on the basis of identified cost) (2,073,416)
Distributions in excess of net
investment income...................... (161,480)
------------
Net assets applicable to outstanding
shares................................ $76,515,150
=============
Computation of net asset value, offering and redemption price per share:
Standard shares:
---------------
Net assets............................ $76,515,150
=============
Shares of beneficial interest outstanding 7,705,181
=============
Net asset value, offering price and redemption
price per share of beneficial interest $ 9.93
=============
+ The Wright Major Blue Chip Equities Fund does not invest in a corresponding
master portfolio.
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Income -
Dividend income........................ $ 580,046
Interest income........................ 693
------------
Investment income..................... $ 580,739
------------
Expenses -
Investment adviser fee (Note 2)........ $ 261,182
Administrator fee - (Note 2)........... 52,235
Compensation of Trustees not employees of the
investment adviser or administrator... 3,700
Interest expense....................... 1,021
Custodian fee
- Standard shares (Note 1D)........... 36,822
- Institutional shares (Note 1D) ..... 1,409
Distribution expenses - Standard shares(Note 3) 108,399
Transfer and dividend disbursing agent fees
- Standard shares..................... 21,383
- Institutional shares................ 68
Printing............................... 2,053
Audit services......................... 30,231
Legal services......................... 4,047
Registration costs
- Standard shares..................... 8,275
- Institutional shares................ 678
Miscellaneous.......................... 2,621
------------
Total expenses........................ $ 534,124
------------
Deduct -
Preliminary reduction of custodian fee
- Standard shares .................... $ (2,548)
- Institutional shares ............... (10)
Preliminary allocation of expenses to
investment adviser
- Institutional shares ............... (1,834)
------------
Total deductions...................... $ (4,392)
------------
Net expenses........................ $ 529,732
------------
Net investment income............. $ 51,007
------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $(7,979,344)
Change in unrealized appreciation
of investments......................... (3,557,061)
------------
Net realized and unrealized loss
of investments......................... $(11,536,405)
------------
Net decrease in net assets from operations $(11,485,398)
=============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED EQUITY TRUST
----------------------------------------------------------------------------------------------------------------------------------
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
-----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment gain (loss)................................................. $ 51,007 $ (85,383)
Net realized loss on investments........................................... (7,979,344) (15,909,664)
Change in unrealized depreciation of investments........................... (3,557,061) (6,477,084)
------------ ------------
Net decrease in net assets resulting from operations..................... $(11,485,398) $(22,472,131)
------------ ------------
Net increase (decrease) in net assets from fund share transactions (Note 4) -
Standard shares............................................................ $ (5,738,278) $(19,372,869)
Institutional shares (Note 8).............................................. (1,382,497) 246,637
------------ ------------
Net decrease in net assets from fund share transactions...................... $ (7,120,775) $(19,126,232)
------------ ------------
Net decrease in net assets................................................... $(18,606,173) $(41,598,363)
NET ASSETS:
At beginning of period....................................................... 95,121,323 136,719,686
------------ ------------
At end of period............................................................. $ 76,515,150 $ 95,121,323
============== ==============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD............................................................. $ (161,480) $ (212,487)
============== ==============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
-------------------------------------------------------------------------------
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investment in portfolio, at value
(identified cost, $78,450,263) (Note 1A) $ 75,015,881
Receivable for fund shares sold......... 53,564
------------
Total assets.......................... $75,069,445
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 11,256
Dividends payable....................... 1,214
Transfer agent fee payable.............. 8,567
Accrued expenses and other liabilities.. 5,727
------------
Total liabilities..................... $ 26,764
------------
NET ASSETS................................ $75,042,681
=============
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................... $98,092,280
Accumulated undistributed net realized loss on
investments and foreign currency (computed
on the basis of identified cost)....... (21,614,110)
Unrealized depreciation of investments and
translation of assets and liabilities in foreign
currencies (computed on the basis of
identified cost)....................... (3,434,382)
Undistributed net investment income..... 1,998,893
------------
Net assets applicable to outstanding
shares................................ $75,042,681
=============
Computation of net asset value, offering and redemption price per share:
Standard shares:
--------------
Net assets............................ $63,007,456
=============
Shares of beneficial interest outstanding 5,538,517
=============
Net asset value, offering price, and redemption
price per share of beneficial interest $ 11.38
=============
Institutional shares:
--------------------
Net assets............................ $12,035,225
=============
Shares of beneficial interest outstanding 2,243,393
=============
Net asset value, offering price, and
redemption price per share
of beneficial interest................ $ 5.36
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Income -
Dividend income allocated from portfolio $ 1,203,932
Interest income allocated from portfolio 2,984
Foreign taxes allocated from portfolio. (136,669)
Expenses allocated from portfolio...... (486,151)
------------
Investment income..................... $ 584,096
------------
Expenses -
--
Administrator fee (Note 2)............. $ 7,661
Compensation of Trustees not employees of
the investment adviser or administrator 3,700
Custodian fee
- Standard shares (Note 1D)........... 5,011
- Institutional shares (Note 1D)...... 5,008
Distribution expenses
-Standard shares (Note 3)............. 80,665
Transfer and dividend disbursing agent fees
- Standard shares..................... 17,677
- Institutional shares................ 1,869
Printing............................... 1,951
Audit services......................... 10,820
Legal services......................... 3,858
Registration costs
- Standard shares..................... 9,272
- Institutional shares................ 7,127
Miscellaneous.......................... 2,342
------------
Total expenses........................ $ 156,961
------------
Net investment income............. $ 427,135
------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investment and foreign
currency transactions from portfolio
(identified cost basis)................ $(6,395,819)
Change in unrealized depreciation of
investments and translation of assets
and liabilities in foreign currencies
from portfolio........................ 5,114,437
------------
Net realized and unrealized loss of
investments............................ $(1,281,382)
------------
Net decrease in net assets from
operations........................... $ (854,247)
=============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED EQUITY TRUST
---------------------------------------------------------------------------------------------------------------------------------
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
-----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
DECREASE IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income (loss)............................................... $ 427,135 $ (155,476)
Net realized loss on investments and foreign currency transactions......... (6,395,819) (11,569,695)
Change in unrealized depreciation on investments and translation of assets
and liabilities in foreign currencies ................................... 5,114,437 (17,726,546)
------------ ------------
Net decrease in net assets resulting from operations..................... $ (854,247) $(29,451,717)
------------ ------------
Net decrease in net assets from fund share transactions (Note 4) -
Standard shares.......................................................... $ (3,111,616) $(19,188,438)
Institutional shares..................................................... (1,005,127) (143,595)
------------ ------------
Net decrease in net assets from fund share transactions...................... $ (4,116,743) $(19,332,033)
------------ ------------
Net decrease in net assets................................................... $ (4,970,990) $(48,783,750)
NET ASSETS:
At beginning of period....................................................... 80,013,671 128,797,421
------------ ------------
At end of period............................................................. $ 75,042,681 $ 80,013,671
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ 1,998,893 $ 1,571,758
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED EQUITY TRUST
-----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Year Ended December 31,
-------------------------------------
---------------------------------------------------------------------------------
Wright Selected Blue Chip Equities Fund 2002(6)(7) 2001(6) 2000(6) 1999 1998 1997
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 11.580 $ 13.430 $ 15.130 $ 17.630 $ 19.200 $ 17.730
-------- -------- ---------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)* ......... $ (0.031) $ (0.045) $ (0.041) $ 0.181 $ 0.095 $ 0.133
Net realized and unrealized gain (loss) (0.482) (1.322) 1.638 0.638 (0.139) 5.172
-------- -------- ---------- -------- -------- --------
Total income (loss)
from investment operations......... $ (0.513) $ (1.367) $ 1.597 $ 0.819 $ (0.044) $ 5.305
-------- -------- ---------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ - $ - $ - $ (0.055) $ (0.090) $ (0.145)
Distributions from capital gains....... (0.433) (0.483) (3.297) (3.264) (1.436) (3.690)
-------- -------- ---------- -------- -------- --------
Total distributions................ $ (0.433) $ (0.483) $ (3.297) $ (3.319) $ (1.526) $ (3.835)
-------- -------- ---------- -------- -------- --------
Net asset value, end of period.............. $ 10.630 $ 11.580 $ 13.430 $ 15.130 $ 17.630 $ 19.200
========= ========== ========== ========== ========== ==========
Total return(1) ............................ (4.79%) (10.15%) 10.75% 5.75% 0.14% 32.70%
Ratios/Supplemental Data*:
Net assets, end of period (000 omitted) $ 43,043 $ 45,883 $ 51,201 $ 74,547 $ 220,965 $259,411
Ratio of total expenses to average net assets 1.27%(8) 1.26% 1.26% 1.16% 1.11% 1.08%
Ratio of net expenses after custodian fee
reduction to average net assets(5).. 1.25%(3)(8) 1.25%(3 1.25%(3) 1.15%(3) 1.11%(3) 1.08%(3)
Ratio of net investment income (loss) to average
net assets.......................... (0.55%)(8) (0.38%) (0.28%) 0.36% 0.46% 0.75%
Portfolio turnover rate .............. 80%(4) 67%(4) 55%(4) 106%(4) 78%(4) 10%(2)
---------------------------------------------------------------------------------------------------------------------------------
* For the six months ended June 30, 2002 and for the years ended December 31,
2001, 2000 and 1999, the distributor reduced its fees. Had such action not
been undertaken, net investment income (loss) per share and the ratios would
have been as follows:
2002(6)(7) 2001 2000 1999
--------- ----- ------ --------
Net investment income (loss) per share. $ (0.041) $ (0.057) $ (0.051) $ 0.151
========== ========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses........................... 1.45%(3)(8) 1.37% 1.33% 1.22%
========== ========== ========== ==========
Expenses after custodian fee reduction(5) 1.43%(3)(8) 1.36%(3) 1.32%(3) 1.21%(3)
========== ========== ========== ==========
Net investment income (loss)....... (0.72%)(3)(8 (0.49%) (0.35%) 0.30%
========== ========== ========== ==========
----------------------------------------------------------------------------------------------------------------------------------
(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 reinvestment date.
(2)Portfolio turnover represents the rate of portfolio activity for the period
while the fund was making investments directly in securities.
(3)Includes each fund's share of its corresponding portfolio's allocated expenses.
(4)Represents portfolio turnover rate of the fund's corresponding portfolio.
(5)Custodian fees were reduced by credits resulting from cash balances the fund
and the portfolio maintained with the custodian (Note 1D). The computation of
net expenses to average daily net assets reported above is computed without
consideration of such credits.
(6) Certain per share amounts are based on average shares outstanding.
(7) For the six months ended June 30, 2002 (unaudited)
(8) Annualized.
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED EQUITY TRUST
----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Year Ended December 31,
---------------------------------------------------------------------------
---------------------------------------------------------------------------
WRIGHT MAJOR BLUE CHIP EQUITIES FUND 2002(4)(7) 2001(4) 2000(4) 1999(4) 1998 1997
-----------------------------------------------------------------------------------------------------------------------------------
Standard Shares
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 11.380 $ 13.690 $ 16.290 $ 13.670 $ 12.020 $ 12.450
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(1) ....... $ 0.006 $ (0.009) $ (0.001) $ 0.042 $ 0.091 $ 0.100
Net realized and unrealized gain (loss) (1.456) (2.301) (2.005) 3.202 2.324 3.515
-------- --------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ (1.450) $ (2.310) $ (2.006) $ 3.244 $ 2.415 $ 3.615
-------- --------- -------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ - $ - $ (0.010) $ (0.045) $ (0.055) $ (0.085)
Distributions from capital gains....... - - (0.584) (0.579) (0.710) (3.960)
-------- --------- -------- -------- -------- --------
Total distributions................ $ - $ - $ (0.594) $ (0.624) $ (0.765) $ (4.045)
-------- --------- -------- -------- -------- --------
Net asset value, end of period.............. $ 9.930 $ 11.380 $ 13.690 $ 16.290 $ 13.670 $ 12.020
========== ========== ========== ========== ========== ==========
Total Return(3) ............................ (12.74%) (16.87%) (12.49%) 23.95% 20.43% 33.86%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted) $ 76,515 $ 93,696 $ 135,262 $ 144,359 $ 50,878 $ 27,721
Ratio of total expenses to average net assets 1.22%(8) 1.13% 1.06% 1.05% 1.07%(2) 1.08%(2)
Ratio of net expenses after custodian fee
reduction to average net assets(2) . 1.22%(8) 1.13% 1.06% 1.05% 1.05%(2)(6) 1.05%(2)(6)
Ratio of net investment income (loss) to
average net assets ................. 0.12%(8) (0.08%) (0.00%)(5) 0.27% 0.49% 0.68%
Portfolio turnover rate................ 59% 78% 88% 59% 36% 89%
---------------------------------------------------------------------------------------------------------------------------------
(1)For the years ended December 31, 1999, 1998, and 1997, the operating
expenses of the Fund were reduced by an allocation of expenses to the
distributor and/or investment adviser. Had such action not been undertaken,
net investment income per share and the ratios would have been as follows:
1999 1998 1997
-----------------------------------
Net investment income (loss) per share. $ 0.034 $ 0.052 $ 0.049
========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses............................. 1.10% 1.28% 1.43%
========== ========== ==========
Expenses after custodian fee reduction(2) 1.10% 1.26% 1.40%
========== ========== ==========
Net investment income................ 0.22% 0.28% 0.33%
========== ========== ==========
---------------------------------------------------------------------------------------------------------------------------------
(2)Custodian fees were reduced by credits resulting from cash balances the fund
maintained with the custodian (Note 1D). The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits.
(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 reinvestment date.
(4)Certain per share amounts are based on average shares outstanding.
(5)Amount represents less than (0.00%) of average net shares.
(6)Under a written agreement, Wright waives a portion of its advisory fee and
assumes operating expenses to the extent necessary to limit expense ratios to
1.25%.
(7)For the six months ended June 30, 2002 (unaudited)
(8)Annualized.
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED EQUITY TRUST
------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Year Ended December 31,
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Wright International Blue Chip Equities Fund 2002(5)(6) 2001(5) 2000(5) 1999(5) 1998 1997
------------------------------------------------------------------------------------------------------------------------------
Standard Shares
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 11.510 $15.180 $18.900 $16.020 $16.020 $16.690
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income (loss) .......... $ 0.062 $ (0.023) $ 0.135 $ (0.004) $ 0.078 $ 0.185
Net realized and unrealized gain (loss) (0.192) (3.647) (3.455) 5.181 0.868 0.048+
--------- --------- --------- --------- --------- ---------
Total income (loss)
from investment operations...... $ (0.130) $ (3.670) $ (3.320) $ 5.177 $ 0.946 $ 0.233
--------- --------- --------- --------- --------- ---------
Less distributions:
Dividends from investment income....... $ - $ - $ - $ - $ (0.070) $ (0.163)
Distributions from capital gains....... - - (0.400) (2.297) (0.876) (0.740)
--------- --------- --------- --------- --------- ---------
Total distributions................ $ - $ - $ (0.400) $ (2.297) $ (0.946) $ (0.903)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.............. $11.380 $11.510 $15.180 $18.900 $16.020 $16.020
========== ========== ========== ========== ========== ==========
Total return(1) ............................ (1.13%) (24.18%) (17.58%) 34.26% 6.14% 1.54%
Ratios/Supplemental Data
Net assets, end of period (000 omitted) $63,007 $66,828 $110,868 $147,610 $193,327 $212,698
Ratio of total expenses to average
daily net assets...................... 1.70%(3)(7) 1.56%(3) 1.49%(3) 1.49%(3) 1.35%(3) 1.31%(3)
Ratio of net investment income (loss) to average
daily net assets 1.09%(7) (0.18%) 0.76% (0.02%) 0.42% 0.82%
Portfolio turnover rate .............. 46%(4) 39%(4) 53%(4 ) 105%(4) 66%(4) 4%(2)
-------------------------------------------------------------------------------------------------------------------------------
(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 reinvestment date.
(2)Portfolio turnover represents the rate of portfolio activity for the period
while the fund was making investments directly in securities.
(3)Includes each fund's share of its corresponding Portfolio's allocated expenses.
(4)Represents portfolio turnover rate of the fund's corresponding portfolio.
(5)Certain per share amounts are based on average shares outstanding.
(6)For the six months ended June 30, 2002 (unaudited)
(7)Annualized.
+ Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of fund shares and
the amounts per share of realized and unrealized gains and losses at such
times.
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED EQUITY TRUST
----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Year Ended December 31,
-----------------------------------------------------------
----------------------------------------------------------------------------
Wright International Blue Chip Equities Fund 2002(4)(6) 2001(4) 2000(4) 1999(4) 1998 1997*
----------------------------------------------------------------------------------------------------------------------------
Institutional Shares
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 5.430 $ 7.150 $ 9.160 $ 8.750 $ 9.130 $ 10.000
-------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income (loss) .......... $ 0.033 $ (0.001) $ 0.070 $ 0.014 $ 0.159 $ 0.006
Net realized and unrealized gain (loss) (0.103) (1.719) (1.680) 2.693 0.487 (0.646)+
-------- --------- -------- -------- -------- --------
Total income (loss)
from investment operations...... $ (0.070) $ (1.720) $ (1.610) $ 2.707 $ 0.646 $ (0.640)
-------- ---------- -------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ - $ - $ - $ - $ (0.150) $ -
Distributions from capital gains....... - - (0.400) (2.297) (0.876) (0.230)
-------- -------- ---------- -------- -------- --------
Total distribution................. $ - $ - $ (0.400) $ (2.297) $ (1.026) $ (0.230)
-------- -------- ---------- -------- -------- --------
Net asset value, end of period.............. $ 5.360 $ 5.430 $ 7.150 $ 9.160 $ 8.750 $ 9.130
========= ========= ========= ========= ========= =========
Total return(1) ............................ (1.29%) (24.06%) (17.62%) 34.49% 7.54% (6.37%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 12,035 $ 13,186 $ 17,929 $ 24,254 $ 18,511 $ 45,094
Ratio of total expenses to average daily
net assets........................... 1.58%(2)++ 1.43%(2) 1.30%(2) 1.28%(2) 1.12%(2) 1.16%(2)++
Ratio of net investment income (loss) to
average daily net assets............. 1.22%++ (0.02%) 0.87% 0.16% 0.73% 0.15%++
Portfolio turnover rate................ 46%(3) 39%(3) 53%(3) 105%(3) 66%(3) 4%(5)
--------------------------------------------------------------------------------------------------------------------------------
(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 reinvestment date.
(2)Includes each fund's share of its corresponding portfolio's allocated expenses.
(3)Represents portfolio turnover rate of the fund's corresponding portfolio.
(4)Certain per share amounts are based on average shares outstanding.
(5)Portfolio turnover represents the rate of portfolio activity for the period
while the fund was making investments directly in securities.
(6)For the six months ended June 30, 2002 (unaudited)
+ Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of fund shares and
the amounts per share of realized and unrealized gains and losses at such
times.
++ Annualized.
* For the period from July 7, 1997 (inception of offering institutional shares)
to December 31, 1997.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Equity Trust (the Trust), issuer of Wright Selected Blue
Chip Equities Fund (WBC) series, Wright Major Blue Chip Equities Fund (WMBC)
series, and Wright International Blue Chip Equities Fund (WIBC) series
(collectively, the Funds), is registered under the Investment Company Act of
1940, as amended, as a diversified, open-end, management investment company. WBC
and WIBC invest all of their investable assets in interests in a separate
corresponding open-end management investment company (a Portfolio), a New York
Trust, having the same investment objective as its corresponding fund. WBC
invests its assets in the Selected Blue Chip Equities Portfolio and WIBC invests
its assets in the International Blue Chip Equities Portfolio. The value of each
fund's investment in its corresponding Portfolio reflects the fund's
proportionate interest in the net assets of that Portfolio (98.69% and 99.21% at
June 30, 2002 for WBC and WIBC, respectively). The performance of each fund is
directly affected by the performance of its corresponding Portfolio. The
financial statements of each Portfolio, including the portfolio of investments,
are included elsewhere in this report and should be read in conjunction with
each fund's financial statements. 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 accounting principles
generally accepted in the United States of America.
A. Investment Valuations - For WMBC, securities listed on securities exchanges
or in the NASDAQ National Market are valued at closing sale prices, if
those prices are deemed to be representative of market values at the close
of business. 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 fair value. Securities for which market
quotations are unavailable or deemed not to be representative of market
values at the close of business are appraised at their fair value as
determined in good faith by or at the direction of the Trustees. Valuation
of securities by WBC and WIBC are discussed in Note 1A of the Portfolios'
Notes to Financial Statements which are included elsewhere in this report.
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. Income - For WMBC, 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. The net investment income of WBC and WIBC consists of
the fund's pro rata share of the net investment income of its corresponding
Portfolio, less all actual and accrued expenses of each fund determined in
accordance with accounting principles generally accepted in the United
States of America.
D. Expense Reduction - The funds have entered into an arrangement with their
custodian whereby interest earned on uninvested cash balances is used to
offset custodian fees. All significant reductions are reported as a
reduction of total expenses in the funds' Statement of Operations.
E. 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. At December 31,
2001, the Trust, for federal income tax purposes, had capital loss
carryovers of $12,528,270 (WIBC) and $17,128,584 (WMBC) which will reduce
taxable income away 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:
WIBC WMBC
12/31/2009 $12,528,270 $17,128,584
At December 31, 2001, net capital losses of $2,837,240 for WIBC and
$3,179,347 for WMBC attributable to security transactions incurred after
October 31, 2001 are treated as arising on the first day of the fund's
current taxable year. 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.
<PAGE>
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.
G. Other - Investment transactions are accounted for on a trade-date basis.
H. Use of Estimates - The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America 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.
I. Multiple Classes of Shares of Beneficial Interest - Each fund is authorized
to offer a standard share class and an institutional share class. The share
classes differ in their respective distribution and service fees. All
shareholders bear the common expenses of the fund pro rata based on the
average daily net assets of each class, without distinction between share
classes. Dividends are declared separately for each class. Each class has
equal rights as to voting, redemption, dividends, and liquidation. At June
30, 2002, only WIBC had an institutional share class.
J. Reclassifications - Certain amounts in the prior periods' financial
statements have been reclassified to conform to the current year's
presentation.
K. Interim Financial Information - The interim financial statements relating
to June 30, 2002 and for the six month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Trust's management, reflect all adjustments, consisting only of
normally recurring adjustments, necessary for the fair presentation of the
financial statements.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service, Inc. (Wright) to act as
investment adviser to WMBC pursuant to an Investment Advisory Contract. Wright
furnishes the fund with 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 six months ended June 30, 2002, for WMBC the
effective annual rate was 0.60%. The Portfolios have engaged Wright to render
investment advisory services. See Note 2 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report. To enhance the net
income of the fund, $1,834 of expenses were allocated to the investment adviser
for WMBC-Institutional shares. 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
six months ended June 30, 2002, the effective annual rate was 0.02% for WBC,
0.12% for WMBC, and 0.02% 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 employees of 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 wholly-owned subsidiary of The Winthrop Corporation, an annual
rate of 0.25% of each fund's average daily net assets attributable to Standard
shares for activities primarily intended to result in the sale of each fund's
Standard shares. To enhance the net income of WBC, the principal underwriter
made a reduction of its fee by $14,397 and a preliminary allocation of expenses
was made by the investment adviser in the amount of $26,091. In addition, the
Trustees have adopted a service plan (the Service Plan) which allows the funds
to reimburse the Principal Underwriter for payments to intermediaries for
providing account administration and account maintenance services to their
customers who are beneficial owners of shares. The amount of service fee payable
under the Service Plan with respect to each class of shares may not exceed 0.25%
annually of the average daily net assets attributable to the respective classes.
For the six months ended June 30, 2002, the funds did not accrue or pay any
service fees.
<PAGE>
(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:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 2002 (unaudited) December 31, 2001
--------------------------- ----------------------------
Shares Amount Shares Amount
---------------------------------------------------------------------------------------------------------------------------
Wright Selected Blue Chip Equities Fund--
<S> <C> <C> <C> <C>
Sold................................................... 684,656 $ 7,907,314 1,226,640 $ 15,073,784
Issued to shareholders in payment of distributions
declared.............................................. 126,916 1,479,836 152,753 1,755,132
Reacquired............................................. (725,944) (8,304,111) (1,228,781) (14,455,232)
----------- -------------- ----------- --------------
Net increase......................................... 85,628 $ 1,083,039 150,612 $ 2,373,684
=========== ============== ============= ================
Wright Major Blue Chip Equities Fund -- Standard Shares
Sold.................................................. 816,881 $ 8,948,782 1,922,615 $ 23,607,686
Reacquired............................................. (1,346,631) (14,687,060) (3,569,321) (42,980,555)
----------- -------------- ----------- --------------
Net decrease......................................... (529,750) $ (5,738,278) (1,646,706) $ (19,372,869)
=========== ============== ============= ===============
Wright Major Blue Chip Equities Fund -- Institutional Shares
Sold.................................................. 1 $ 1,000 47,224 $ 360,037
Reacquired............................................. (206,265) (1,383,497) (16,459) (113,400)
----------- -------------- ----------- --------------
Net increase (decrease).............................. (206,264) $ (1,382,497) 30,765 $ 246,637
=========== =============== ============= ===============
Wright International Blue Chip Equities Fund-- Standard Shares:
Sold................................................... 456,629 $ 5,212,740 1,422,001 $ 18,096,877
Reacquired............................................. (723,288) (8,324,356) (2,921,600) (37,285,315)
----------- -------------- ----------- --------------
Net decrease......................................... (266,659) $ (3,111,616) (1,499,599) $ (19,188,438)
=========== ============== ============= ==============
Wright International Blue Chip Equities Fund-- Institutional Shares:
Sold................................................... -- $ -- 158,515 $ 1,025,000
Reacquired............................................. (186,188) (1,005,127) (235,080) (1,168,595)
----------- -------------- ----------- --------------
Net decrease........................................... (186,188) $ (1,005,127) (76,565) $ (143,595)
=========== ============== ============= ==============
</TABLE>
<PAGE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations were as follows:
Six Months Ended
June 30, 2002
-------------------
WMBC
------------------------------------------------------------------------------
Purchases........................... $ 51,779,266
=============
Sales............................... $ 59,172,531
=============
------------------------------------------------------------------------------
Increases and decreases in each fund's investment in its corresponding
Portfolio for the six months ended June 30, 2002 were as follows:
WBC WIBC
-------------------------------------------------------------------------------
Increases................... $7,902,477 $ 5,190,137
Decreases................... (8,637,560) (12,007,359)
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 2002, as computed on a federal income tax basis,
are as follows:
WMBC
-------------------------------------------------------------------------------
Aggregate cost.......................... $ 78,482,207
=============
Gross unrealized appreciation........... $ 5,063,555
Gross unrealized depreciation........... (7,136,971)
-------------
Net unrealized depreciation............. $ (2,073,416)
=============
-------------------------------------------------------------------------------
(7) LINE OF CREDIT
The funds participate with other funds managed by Wright in a committed $20
million unsecured line of credit agreement with a bank. The funds may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each fund based on its
borrowings at an amount above the federal funds rate. In addition, a fee
computed at an annual rate of 0.10% on the average daily unused portion of the
$20 million line of credit, is allocated among the participating funds at the
end of each quarter. WSBC, WMBC, and WIBC did not have significant borrowings or
allocated fees during the six months ended June 30, 2002. WMBC has $289,000
outstanding at June 30, 2002.
(8) CLASS ELIMINATION
The Institutional Share class of Major Blue Chip Equities Fund was fully
liquidated on February 14, 2002.
<PAGE>
WRIGHT MANAGED INCOME TRUST
-------------------------------------------------------------------------------
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)+
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Total investments, at amortized cost
(Note 1A).............................. $ 17,990,326
Receivable from investment adviser...... 55,000
Interest receivable..................... 22,011
------------
Total assets.......................... $ 18,067,337
------------
LIABILITIES:
Due to the bank......................... $ 120,577
Distributions payable................... 24,946
Payable to investment adviser........... 165
Accrued expenses and other liabilities.. 10,692
------------
Total liabilities..................... $ 156,380
------------
NET ASSETS (consisting of paid-in capital) $ 17,910,957
==============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................. 17,877,858
==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST.................. $ 1.00
==============
+ The Wright U.S.Treasury Money Market Fund does not invest in a corresponding
master portfolio. The amortized cost of securities held at June 30, 2002 is the
same as the market value.
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income........................ $ 157,921
------------
Expenses -
Investment adviser fee (Note 3)........ $ 29,392
Administrative fee (Note 3)............ 5,879
Compensation of Trustees not employees of
the investment adviser or administrator 2,220
Custodian fee (Note 1C)................ 21,144
Transfer and dividend disbursing agent fees 9,448
Printing............................... 2,978
Audit services......................... 29,151
Legal services......................... 1,352
Registration costs..................... 19,898
Miscellaneous.......................... 887
------------
Total expenses........................ $ 122,349
------------
Deduct -
Preliminary reduction of custodian fee
(Note 1C)............................. $ (313)
Preliminary allocation of expenses to investment
adviser (Note 3)...................... (55,000)
Preliminary reduction of investment adviser fee
(Note 3).............................. (29,227)
------------
Total deductions...................... $ (84,540)
------------
Net expenses.......................... $ 37,809
------------
Net investment income............... $ 120,112
============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED INCOME TRUST
------------------------------------------------------------------------------------------------------------------------------
Wright U.S. Treasury Money Market Fund (WTMM)+
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
-------------------------------------------------------------------------------------------------------------------------------
(unaudited)
DECREASE IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 120,112 $ 1,140,033
Net realized gain on investments sold...................................... -- 74,786
------------ ------------
Net increase in net assets resulting from operations..................... $ 120,112 $ 1,214,819
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income................................................. $ (148,370) $ (1,140,033)
From net realized gain..................................................... -- (13,429)
------------ ------------
Total distributions...................................................... $ (148,370) $ (1,153,462)
------------ ------------
Fund share transactions+ -
Proceeds from shares sold.................................................. $ 18,426,345 $ 61,026,684
Reinvestment of dividends.................................................. 70,321 769,217
Cost of shares reacquired.................................................. (19,141,339) (86,881,373)
------------ ------------
Net decrease in net assets from fund share transactions...................... $ (644,673) $(25,085,472)
------------ ------------
Net decrease in net assets............................................... $ (672,931) $(25,024,115)
NET ASSETS:
At beginning of period....................................................... 18,583,888 43,608,003
------------ ------------
At end of period............................................................. $ 17,910,957 $ 18,583,888
============= =============
+ For WTMM, the Fund share transactions are at a net asset value of $1.00 per
share.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
-------------------------------------------------------------------------------
Wright U.S. Government Near Term Fund (WNTB)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments -
Investments in portfolio, at value
(identified cost of $34,497,107)(Note 1A) $35,119,295
Receivable for fund shares sold........ 2,979
------------
Total assets.......................... $35,122,274
------------
LIABILITIES:
Distributions payable................... $ 29,890
Payable for fund shares reacquired...... 7,895
Transfer agent fee payable.............. 4,650
Accrued expenses and other liabilities.. 4,837
------------
Total liabilities..................... $ 47,272
------------
NET ASSETS................................ $35,075,002
============
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................... $42,181,176
Accumulated net realized loss on investments
(computed on the basis of identified cost) (7,716,848)
Unrealized appreciation on investments
(computed on the basis of identified cost) 622,188
Distributions in excess of net investment
income................................. (11,514)
------------
Net assets applicable to outstanding
shares................................ $35,075,002
=============
SHARES OF BENEFICIAL INTEREST OUTSTANDING. 3,388,426
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST.................. $ 10.35
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income allocated from portfolio $ 763,285
Expenses allocated from portfolio...... (112,728)
------------
Investment income..................... $ 650,557
------------
Expenses -
Administrator fee (Note 3)............. $ 3,481
Compensation of Trustees not employees of
the investment adviser or administrator 2,220
Custodian fee (Note 1C)................ 7,465
Distribution expenses (Note 4)......... 43,503
Transfer and dividend disbursing agent fees 11,152
Printing............................... 2,587
Audit services......................... 10,920
Legal services......................... 1,921
Registration costs..................... 9,632
Miscellaneous.......................... 1,207
------------
Total expenses........................ $ 94,088
------------
Deduct -
Preliminary reduction of distribution expenses by
principal underwriter (Note 4)........ $ (41,510)
------------
Net expenses.......................... $ 52,578
------------
Net investment income............... $ 597,979
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investment transactions
from portfolio (identified cost basis). $ 171,029
Net change in unrealized appreciation
of investments......................... 49,012
------------
Net realized and unrealized gain of
investments........................... $ 220,041
------------
Net increase in net assets from
operations........................... $ 818,020
============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED INCOME TRUST
----------------------------------------------------------------------------------------------------------------------------------
Wright U.S. Government Near Term Fund (WNTB)
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
-----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 597,979 $ 1,594,846
Net realized gain on investment transactions............................... 171,029 436,243
Change in unrealized appreciation of investments........................... 49,012 367,359
------------ ------------
Net increase in net assets resulting from operations..................... $ 818,020 $ 2,398,448
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income................................................. $ (631,142) $ (1,651,229)
------------ ------------
Net decrease in net assets from fund share transactions (Note 5)............. $ (1,137,047) $ (3,930,842)
------------ ------------
Net decrease in net assets............................................... $ (950,169) $ (3,183,623)
NET ASSETS:
At beginning of period....................................................... 36,025,171 39,208,794
------------ ------------
At end of period............................................................. $ 35,075,002 $ 36,025,171
============= =============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED
IN NET ASSETS AT END OF PERIOD............................................... $ (11,514) $ 21,649
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
-------------------------------------------------------------------------------
WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND (WUSGI)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments -
Investments in portfolio, at value
(identified cost of $9,242,677) (Note 1A) $ 9,626,300
Receivable from investment adviser...... 32,168
Receivable for fund shares sold......... 1,394
------------
Total assets.......................... $ 9,659,862
------------
LIABILITIES:
Distributions payable................... $ 13,831
Payable for fund shares reacquired...... 3,262
Accrued expenses and other liabilities.. 580
------------
Total liabilities..................... $ 17,673
------------
NET ASSETS................................ $ 9,642,189
============
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................... $ 9,303,045
Accumulated net realized loss on investments
(computed on the basis of identified cost) (23,437)
Unrealized appreciation on investments
(computed on the basis of identified cost) 383,623
Distribution in excess of net investment
income................................. (21,042)
------------
Net assets applicable to outstanding
shares................................ $ 9,642,189
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 705,397
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $ 13.67
============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income allocated from portfolio $ 269,265
Expenses allocated from portfolio...... (39,783)
------------
Investment income..................... $ 229,482
------------
Expenses -
Administration fee (Note 3)............ $ 981
Compensation of Trustees not employees of
the investment adviser or administrator 2,220
Custodian fee (Note 1C)................ 7,499
Distribution expenses (Note 4)......... 12,259
Transfer and dividend disbursing agent fees 3,804
Printing............................... 2,629
Audit services......................... 11,320
Legal services......................... 1,077
Registration costs..................... 8,132
Miscellaneous.......................... 1,307
------------
Total expenses........................ $ 51,228
------------
Deduct -
Preliminary reduction of distribution expenses by
principal underwriter (Note 4)........ $ (12,259)
Preliminary allocation of expenses to
investment adviser (Note 3)........... (32,168)
------------
Total deductions...................... $ (44,427)
------------
Net expenses.......................... $ 6,801
------------
Net investment income............... $ 222,681
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
from portfolio (identified cost basis). $ 342,410
Net change in unrealized appreciation
of investments......................... (296,698)
------------
Net realized and unrealized gain of
investments........................... $ 45,712
------------
Net increase in net assets from operations $ 268,393
============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED INCOME TRUST
----------------------------------------------------------------------------------------------------------------------------
Wright U.S. Government Intermediate Fund (WUSGI)
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
-----------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 222,681 $ 625,271
Net realized gain on investment transactions............................... 342,410 170,578
Change in unrealized appreciation on investments........................... (296,698) (242,781)
------------ ------------
Net increase in net assets resulting from operations..................... $ 268,393 $ 553,068
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income................................................. $ (242,766) $ (674,365)
From net realized gain..................................................... -- (56,599)
------------ ------------
Total distributions...................................................... $ (242,766) $ (730,964)
------------ ------------
Net decrease in net assets from fund share transactions (Note 5)............. $ (552,491) $ (6,150,565)
------------ ------------
Net decrease in net assets............................................... $ (526,864) $ (6,328,461)
NET ASSETS:
At beginning of period....................................................... 10,169,053 16,497,514
------------ ------------
At end of period............................................................. $ 9,642,189 $ 10,169,053
============= =============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED
IN NET ASSETS AT END OF PERIOD............................................... $ (21,042) $ (957)
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
-------------------------------------------------------------------------------
WRIGHT TOTAL RETURN BOND FUND (WTRB)+
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $45,100,133
Unrealized appreciation............... 1,451,110
------------
Total investments, at value (Note 1A)... $46,551,243
Cash.................................... 194
Receivable for investments sold......... 1,713,135
Receivable for fund shares issued....... 13,944
Receivable from investment adviser...... 15,820
Interest receivable..................... 621,802
Other assets............................ 381
------------
Total assets.......................... $48,916,519
------------
LIABILITIES:
Distributions payable................... $ 39,310
Notes payable........................... 1,075,000
Payable for investments purchased....... 600,847
Payable for fund shares reacquired...... 15,722
Accrued expenses and other liabilities.. 14,874
------------
Total liabilities..................... $ 1,745,753
------------
NET ASSETS................................ $47,170,766
===========
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................... $49,635,935
Accumulated net realized loss on investments
(computed on the basis of identified cost) (3,884,392)
Unrealized appreciation on investments
(computed on the basis of identified cost) 1,451,110
Distributions in excess of net investment
income................................. (31,887)
------------
Net assets applicable to outstanding
shares................................ $47,170,766
==============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................. 3,766,215
==============
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE OF
BENEFICIAL INTEREST..................... $ 12.52
==============
+ The Wright Total Return Bond Fund does not invest in a corresponding master
portfolio.
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income........................ $ 1,520,277
------------
Expenses -
Investment adviser fee (Note 3)........ $ 110,938
Administrator fee (Note 3)............. 17,257
Compensation of Trustees not employees of
the investment adviser or administrator 2,220
Custodian fee (Note 1C)................ 20,180
Distribution expenses (Note 4)......... 61,632
Transfer and dividend disbursing agent fees 11,225
Printing............................... 2,783
Interest expense....................... 3,274
Audit services......................... 30,490
Legal services......................... 2,400
Registration costs..................... 11,237
Miscellaneous.......................... 4,910
------------
Total expenses........................ $ 278,546
------------
Deduct -
Preliminary reduction of custodian
fee (Note 1C)......................... $ (3,418)
Preliminary allocation of expenses to
investment adviser.................... (15,820)
Preliminary reduction of distribution
expenses by principal underwriter (Note 4) (25,380)
------------
Total deductions...................... $ (44,618)
------------
Net expenses.......................... $ 233,928
------------
Net investment income............... $ 1,286,349
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (168,549)
Net change in unrealized appreciation
of investments......................... 80,789
------------
Net realized and unrealized loss of
investments........................... $ (87,760)
------------
Net increase in net assets from operations $ 1,198,589
============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED INCOME TRUST
------------------------------------------------------------------------------------------------------------------------------
Wright Total Return Bond Fund (WTRB)
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
-------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 1,286,349 $ 3,184,961
Net realized loss on investment transactions............................... (168,549) (496,921)
Change in unrealized appreciation of investments........................... 80,789 321,944
------------ ------------
Net increase in net assets resulting from operations..................... $ 1,198,589 $ 3,009,984
------------ ------------
Distributions to shareholders (Note 2)
From net investment income................................................. $ (1,309,421) $ (3,220,354)
------------ ------------
Net decrease in net assets from fund share transactions (Note 5)............. $ (3,338,884) $(14,943,795)
------------ ------------
Net decrease in net assets............................................... $ (3,449,716) $(15,154,165)
NET ASSETS:
At beginning of year......................................................... 50,620,482 65,774,647
------------ ------------
At end of year............................................................... $ 47,170,766 $ 50,620,482
============= =============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF YEAR........................................ $ (31,887) $ (8,815)
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
-------------------------------------------------------------------------------
WRIGHT CURRENT INCOME FUND (WCIF)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments -
Investment in portfolio, at value (identified
cost of $72,810,698) (Note 1A)...... $75,143,730
Receivable from investment adviser.... 31,929
Receivable for fund shares issued..... 164,966
Prepaid assets........................ 11,912
------------
Total assets.......................... $75,352,537
------------
LIABILITIES:
Payables for fund shares reacquired..... $ 5,621
Distributions payable................... 134,190
Accrued expenses and other liabillities. 9,373
------------
Total liabilities..................... $ 149,184
------------
NET ASSETS................................ $75,203,353
============
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................... $74,939,135
Accumulated net realized loss on investments
(computed on the basis of identified cost) (1,721,861)
Unrealized appreciation on investments
(computed on the basis of identified cost) 2,333,032
Distributions in excess of net investment
income................................. (346,953)
------------
Net assets applicable to outstanding
shares................................ $75,203,353
============
Computation of net asset value, offering and redemption price per share:
Standard Shares:
---------------
Net assets............................. $57,707,723
============
Shares of beneficial interest outstanding 5,399,894
============
Net asset value, offering price, and
redemption price per share of
beneficial interest................... $ 10.69
============
Institutional Shares:
--------------------
Net assets............................. $17,495,630
============
SHARES OF BENEFICIAL INTEREST OUTSTANDING 1,720,956
============
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE OF
BENEFICIAL INTEREST................... $ 10.17
============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income allocated from portfolio $ 2,352,776
Expenses allocated from portfolio...... (239,094)
------------
Investment income..................... $ 2,113,682
------------
Expenses -
Administrator fee (Note 3)............. $ 7,292
Compensation of Trustees not employees of
the investment adviser or administrator 2,220
Custodian fee
- Standard shares (Note 1C)........... 5,018
- Institutional shares (Note 1C)...... 4,989
Distribution expenses
- Standard shares (Note 4)............ 68,898
Transfer and dividend disbursing agent fees
- Standard shares..................... 9,335
- Institutional shares................ 2,393
Printing............................... 2,110
Audit services......................... 10,920
Legal services......................... 3,357
Registration costs
- Standard shares..................... 8,553
- Institutional shares................ 7,368
Miscellaneous.......................... 1,575
------------
Total expenses........................ $ 134,028
------------
Deduct -
Preliminary allocation of expenses to investment adviser
- Standard shares................... $ (14,278)
- Institutional shares.............. (17,651)
Preliminary reduction of distribution expenses
by principal underwriter
- Standard shares................... (17,330)
------------
Total deductions...................... $ (49,259)
------------
Net expenses.......................... $ 84,769
------------
Net investment income............... $ 2,028,913
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investment transactions
from portfolio (identified cost basis). $ (67,687)
Change in unrealized appreciation
on investments......................... 818,306
------------
Net realized and unrealized gain
on investments........................ 750,619
------------
Net increase in net assets from
operation............................ $ 2,779,532
============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED INCOME TRUST
--------------------------------------------------------------------------------------------------------------------------------
WRIGHT CURRENT INCOME FUND (WCIF)
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 2,028,913 $ 4,876,495
Net realized loss on investment transactions from portfolio................ (67,687) (177,947)
Change in unrealized appreciation on investments........................... 818,306 1,195,719
------------ ------------
Net increase in net assets resulting from operations..................... $ 2,779,532 $ 5,894,267
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income
Standard shares............................................................ $ (512,110) $ (3,460,160)
Institutional shares....................................................... (1,516,803) (1,415,785)
------------ ------------
Total distributions...................................................... $ (2,028,913) $ (4,875,945)
------------ ------------
Net increase (decrease) in net assets -
From Fund share transactions (Note 5)
Standard shares............................................................ $ 2,167,927 $(13,755,466)
Institutional shares....................................................... (1,242,929) (7,445,173)
------------ ------------
Net increase (decrease) in net assets from fund share transactions....... $ 924,998 $(21,200,639)
------------ ------------
Net increase (decrease) in net assets.................................... $ 1,675,617 $(20,182,317)
NET ASSETS:
At beginning of period....................................................... 73,527,736 93,710,053
------------ ------------
At end of period............................................................. $ 75,203,353 $ 73,527,736
============= =============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED
IN NET ASSETS AT END OF PERIOD............................................... $ (346,953) $ (346,953)
============= =============
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED INCOME TRUST
-----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Year Ended December 31,
----------------------------------------------------------------------------
Wright U.S. Treasury Money Market Fund 2002(5) 2001 2000 1999 1998 1997
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........... $ 1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
Income from investment operations:
Net investment income(1) ................. 0.0090 0.0359 0.0530 0.0420 0.0460 0.0474
Net realized gain on investments sold....... -- 0.0004 -- -- -- --
-------- -------- -------- -------- -------- --------
Total income from investment operations..... 0.0090 0.0363 0.0530 0.0420 0.0460 0.0474
Less distributions:
Dividends from net Investment income........ (0.0090) (0.0359) (0.0530) (0.0420) (0.0460) (0.0474)
Dividends from net realized gain............ -- (0.0004) -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions......................... (0.0090) (0.0363) (0.0530) (0.0420) (0.0460) (0.0474)
-------- -------- -------- -------- -------- --------
Net asset value, end of period................. $ 1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
========= ========= ========= ========= ========= =========
Total return(2) ............................... 0.90%(7) 3.70% 5.44% 4.29% 4.73% 4.84%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted)..... $17,911 $ 18,523 $43,608 $62,527 $91,323 $87,059
Ratio of total expenses to average net assets 0.45%(6) 0.47% 0.46% 0.45% 0.45% 0.45%
Ratio of net expenses after custodian fee
reduction to average net assets(3)(4) .... 0.45%(6) 0.45% 0.45% 0.45% 0.45% 0.45%
Ratio of net investment income to average
net asset.................................. 1.43%(6) 3.93% 5.33% 4.19% 4.61% 4.74%
----------------------------------------------------------------------------------------------------------------------------------
(1)During each of the above periods, the investment adviser voluntarily 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:
Net investment income per share................ $ 0.0027 $0.0330 $0.0505 $0.0402 $0.0444 $0.0460
========== ========== ========== ========== ========== ==========
Ratios (as a percentage of average daily net assets):
Expenses.................................... 1.45%(6) 0.88% 0.71% 0.63% 0.61% 0.59%
========== ========== ========== ========== ========== ==========
Expenses after custodian fee reduction(3) .. 1.45%(6) 0.86% 0.70% 0.63% 0.61% 0.59%
========== ========== ========== ========== ========== ==========
Net investment income ...................... 0.43%(6) 3.52% 5.08% 4.01% 4.45% 4.60%
========== ========== ========== ========== ========== ==========
--------------------------------------------------------------------------------------------------------------------------------
(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
reinvested at the net asset value on the reinvestment 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.
(4)Under a written agreement in effect for the current fiscal year, Wright
waives advisory fees and/or assumes operating expenses to the extent
necessary to limit the expense ratio to 0.45%.
(5) For the six months ended June 30, 2002 (unaudited).
(6) Annualized.
(7) Not annualized.
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED INCOME TRUST
-----------------------------------------------------------------------------------------------------------------------------
Financial Highlights
Year Ended December 31,
---------------------------------------------------------------------------
Wright U.S. Government Near Term Fund 2002(9) 2001 2000 1999 1998 1997
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.290 $ 10.080 $ 9.930 $ 10.270 $ 10.240 $ 10.240
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1) ............... $ 0.175 $ 0.480(8) $ 0.525 $ 0.534 $ 0.549 $ 0.599
Net realized and unrealized gain (loss).. 0.070 0.195(8) 0.143 (0.343) 0.048+ (0.010)
-------- -------- -------- -------- -------- --------
Total income from investment operations $ 0.245 $ 0.675 $ 0.668 $ 0.191 $ 0.597 $ 0.589
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ (0.185) $ (0.465) $ (0.518) $ (0.531) $ (0.567) $ (0.589)
-------- -------- -------- -------- -------- --------
Total distributions.................... $ (0.185) $ (0.465) $ (0.518) $ (0.531) $ (0.567) $ (0.589)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 10.350 $ 10.290 $ 10.080 $ 9.930 $ 10.270 $ 10.240
========= ========= ========= ========= ========= ========
Total return(2) ............................ 2.41% 6.82% 6.94% 1.91% 5.98% 5.93%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted).. $ 35,075 $ 36,025 $ 39,198 $ 52,825 $ 91,922 $102,565
Ratio of total expenses to average
net assets(4)........................... 0.97%(10) 0.97% 0.98% 0.91% 0.88% 0.87%
Ratio of expenses after custodian fee
reduction to average net assets(4)(5) 0.95%(7)(10) 0.95%(7) 0.95%(7) 0.90% 0.87% 0.87%
Ratio of net investment income to average
net assets............................ 3.44%(10) 4.40% 5.27% 5.27% 5.38% 5.82%
Portfolio turnover rate ................ 26%(6) 92%(6) 65%(6) 0%(6) 10%(6) 4%(3)
-------------------------------------------------------------------------------------------------------------------------------
(1)For certain periods presented, the operating expenses of the fund were
reduced by an allocation of expenses to the investment adviser, a reduction
in distribution fees by the principal underwriter, a reduction in
administrator fees, or a combination thereof. Had such action not been
undertaken, net investment income per share and the ratios would have been as
follows:
2002(9) 2001 2000 1999 1998 1997
--------- --------- --------- --------- --------- ----------
Net investment income per share........ $ 0.157 $ 0.452 $ 0.511 $ 0.526 $ 0.546 $ 0.597
========= ========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses(4) ......................... 1.33%(10) 1.22% 1.13% 0.99% 0.91% 0.89%
========= ========= ========= ========= ========= =========
Expenses after custodian fee reduction(4)(5) 1.31%(10) 1.20% 1.10% 0.98% 0.90% 0.89%
========= ========= ========= ========= ========= =========
Net investment income................ 3.08%(10) 4.15% 5.13% 5.19% 5.35% 5.80%
========= ========= ========= ========= ========= =========
----------------------------------------------------------------------------------------------------------------------------
(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 reinvestment date.
(3)Portfolio turnover represents the rate of portfolio activity for the period
while the fund was making investments directly in securities.
(4)Includes each fund's share of its corresponding portfolio's allocated expenses.
(5)Custodian fees were reduced by credits resulting from cash balances the fund
and the portfolio 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.
(6)Represents portfolio turnover rate of the fund's corresponding portfolio.
(7)Under a written agreement, Wright waives all or a portion of either its
advisory and/or distribution fees and assumes operating expenses to the
extent necessary to limit expense ratios to 0.95%.
(8)Reporting guidelines require the funds to disclose the effects of
implementing the change in accounting for amortization of premium and
discount on debt securities. If adjustments were not made, net investment
income per share would have been $0.491 and net realized and unrealized gain
(loss) per share would have been $0.184.
(9)For the six months ended June 30, 2002 (unaudited).
(10)Annualized.
+ Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of Fund shares and
the amounts per share of realized and unrealized gains and losses at such
times.
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED INCOME TRUST
----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Year Ended December 31,
---------------------------------------------------------------------------
Wright U.S. Government Intermediate Fund 2002(9) 2001 2000 1999 1998 1997
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 13.630 $ 13.750 $ 12.890 $ 14.400 $ 13.950 $ 13.580
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1) ................ $ 0.304 $ 0.651(8) $ 0.737 $ 0.722 $ 0.724 $ 0.721
Net realized and unrealized gain (loss).. (0.069) 0.006(8) 0.842 (1.282) 0.632 0.462
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations............. $ 0.373 $ 0.657 $ 1.579 $ (0.560) $ 1.356 $ 1.183
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from investment income......... $ (0.333) $ (0.701) $ (0.719) $ (0.716) $ (0.741) $ (0.703)
Distributions from capital gains......... -- (0.076) -- (0.234) (0.165) (0.110)
-------- -------- -------- -------- -------- --------
Total distributions.................... $ (0.333) $ (0.777) $ (0.719) $ (0.950) $ (0.906) $ (0.813)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 13.670 $ 13.630 $ 13.750 $ 12.890 $ 14.400 $ 13.950
========= ========= ========= ========= ========= =========
Total return(2) ............................ 2.78% 5.40% 12.61% (3.97%) 9.95% 9.08%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted).. $ 9,642 $ 10,169 $ 16,498 $ 31,192 $ 67,256 $ 74,158
Ratio of net expenses to average
net assets(4)......................... 0.97%(10) 1.02% 0.97% 0.92% 0.94% 1.01%
Ratio of net expenses after custodian fee
reduction to average net assets(4)(5) 0.95%(7)(10) 0.95%(7) 0.95%(7) 0.90% 0.90% 0.87%
Ratio of net investment income
to average net assets............... 4.54%(10) 5.11% 5.55% 5.26% 5.09% 5.34%
Portfolio turnover rate ................ 77%(6) 27%(6) 74%(6) 0%(6) 7%(6) 1%(3)
---------------------------------------------------------------------------------------------------------------------------------
(1)For each of the periods presented, the operating expenses of the fund were
reduced by an allocation of expenses to the investment adviser, a reduction
in distribution fees by the distributor, a reduction in administrator fees,
or a combination thereof. Had such action not been undertaken, the net
investment income per share and the ratios would have been as follows:
2002(9) 2001 2000 1999 1998 1997
--------- --------- --------- --------- --------- ----------
Net investment income per share............. $ 0.214 $ 0.547 $ 0.700 $ 0.703 $ 0.721 $ 0.720
========= ========= ========= ========= ========= =========
Ratios (as a percentage of average net assets):
Expenses(4) ............................. 2.33%(10) 1.84% 1.26% 1.06% 0.96% 1.02%
========= ========= ========= ========= ========= =========
Expenses after custodian fee reduction(4)(5) 2.31%(10) 1.77% 1.24% 1.04% 0.92% 0.88%
========= ========= ========= ========= ========= =========
Net investment income.................... 3.19%(10) 4.29% 5.27% 5.12% 5.07% 5.33%
========= ========= ========= ========= ========= =========
---------------------------------------------------------------------------------------------------------------------------------
(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 reinvestment date.
(3)Portfolio turnover represents the rate of portfolio activity for the period
while the fund was making investments directly in securities.
(4)Includes each fund's share of its corresponding portfolio's allocated expenses.
(5)Custodian fees were reduced by credits resulting from cash balances the fund
and the portfolio 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.
(6)Represents portfolio turnover rate at the fund's corresponding portfolio.
(7)Under a written agreement, Wright waives all or a portion of either its
advisory and/or distribution fees and assumes operating expenses to the
extent necessary to limit expense ratios to 0.95%.
(8)Reporting guidelines require the fund to disclose the effects of
implementing the change in accounting for the amortization of premium and
discount on debt securities. If the adjustments were not made, net investment
income per share would have been $0.713 and net realized and unrealized gain
(loss) per share would have been $(0.056).
(9)For the six months ended June 30, 2002 (unaudited).
(10)nnualized.
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED INCOME TRUST
---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Year Ended December 31,
----------------------------------------------------------------------------------
Wright Total Return Bond Fund 2002(6) 2001 2000 1999 1998 1997
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 12.550 $ 12.630 $ 12.100 $ 13.310 $ 12.930 $ 12.500
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1) ................ $ 0.322 $ 0.709 (4) $ 0.712 $ 0.679 $ 0.680 $ 0.690
Net realized and unrealized gain (loss).. (0.024) (0.090)(4) 0.530 (1.190) 0.524 0.427
-------- -------- -------- -------- -------- --------
Total income(loss)from investment
operations............................ $ 0.298 $ 0.619 $ 1.242 $ (0.511) $ 1.204 $ 1.117
------- -------- -------- -------- -------- --------
Less distributions:
Dividends from investment income......... $ (0.328) $ (0.699) $ (0.712) $ (0.680) $ (0.690) $ (0.687)
Distributions from capital gains......... -- - - (0.019) (0.134) -
-------- -------- -------- -------- -------- --------
Total distributions.................... $ (0.328) $ (0.699) $ (0.712) $ (0.699) $ (0.824) $ (0.687)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 12.520 $ 12.550 $ 12.630 $ 12.100 $ 13.310 $ 12.930
========= ========= ========= ========= ========= =========
Total return(2) ............................ 2.50% 4.96% 10.62% (3.91%) 9.56% 9.25%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted).. $ 47,171 $ 50,620 $ 65,775 $ 87,336 $ 115,937 $ 80,004
Ratio of total expenses to average net assets 0.96%(7) 0.96% 0.96% 0.90% 0.90% 0.90%
Ratio of net expenses after custodian fee
reduction to average net assets(3) .... 0.95%(5)(7) 0.95%(5) 0.95%(5) 0.90% 0.90% 0.90%
Ratio of net investment income to average
net assets............................ 5.22%(7) 5.44% 5.84% 5.36% 5.18% 5.50%
Portfolio turnover rate.................. 46% 38% 61% 31% 26% 34%
---------------------------------------------------------------------------------------------------------------------------------
(1)For the six months ended June 30, 2002 and for the years ended December 31,
2001 and 1999, the operating expenses of the fund were reduced by an
allocation of expenses to the investment adviser, or a reduction in
distribution expenses by the distributor. Had such action not been
undertaken, net investment income per share and the ratios would have been as
follows:
2002 2001 1999
--------- --------- -------
Net investment income per share.......... $ 0.312 $ 0.701 $ 0.678
========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses............................... 1.13%(7) 1.02% 0.91%
========== ========== ==========
Expenses after custodian fee reduction(3) 1.12%(7) 1.01% 0.91%
========== ========== ==========
Net investment income.................. 5.05%(7) 6.38% 5.35%
========== ========== ==========
--------------------------------------------------------------------------------------------------------------------------------
(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 reinvestment 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.
(4)Reporting guidelines require the funds to disclose the effects of
implementing the change in accounting for amortization of premium and
discount on debt securities. If adjustments were not made, net investment
income per share would have been $0.716 and net realized and unrealized gain
(loss) per share would have been $(0.097).
(5)Under a written agreement, Wright waives all or a portion of either its
advisory and/or distribution fees and assumes operating expenses to the
extent necessary to limit expense ratios to 0.95%.
(6)For the six months ended June 30, 2002 (unaudited).
(7)Annualized.
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED INCOME TRUST
----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Year Ended December 31,
---------------------------------------------------------------------------
Wright Current Income Fund 2002(8) 2001(5) 2000(5) 1999(5) 1998 1997
---------------------------------------------------------------------------------------------------------------------------
Standard Shares
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.580 $ 10.460 $ 10.090 $ 10.660 $ 10.630 $ 10.430
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1) ............... $ 0.290 $ 0.616 $ 0.631 $ 0.620 $ 0.646 $ 0.658
Net realized and unrealized gain (loss).. 0.108 0.120 0.372 (0.570) 0.028 0.206
-------- -------- -------- -------- -------- --------
Total income from
investment operations............. $ 0.398 $ 0.736 $ 1.003 $ 0.050 $ 0.674 $ 0.864
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income..... $ (0.288) $ (0.616) $ (0.633) $ (0.620) $ (0.644) $ (0.664)
-------- -------- -------- -------- -------- --------
Total distributions.................. $ (0.288) $ (0.616) $ (0.633) $ (0.620) $ (0.644) $ (0.664)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ............. $ 10.690 $ 10.580 $ 10.460 $ 10.090 $ 10.660 $ 10.630
========= ========= ========= ========= ========= =========
Total return(2) ............................ 3.82% 7.18% 10.31% 0.52% 6.51% 8.56%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted).. $ 57,708 $ 54,966 $ 68,015 $ 76,452 $ 90,262 $76,217
Ratio of net expenses to average net assets(4) 0.97%(9) 0.95%(7) 0.95%(7) 0.91% 0.90% 0.89%
Ratio of net expenses after custodian fee
reduction to average net assets(7)(10) 0.95%(9) -- -- -- -- --
Ratio of net investment income
to average net assets................. 5.50%(9) 5.83% 6.22% 6.02% 6.03% 6.44%
Portfolio turnover rate ................. 12%(6) 4%(6) 6%(6) 0%(6) 1%(6) 3%(3)
---------------------------------------------------------------------------------------------------------------------------------
(1)For the six months ended June 30, 2002 and for the years ended December 31,
2001, 2000, 1999, 1998 and 1997, the operating expenses of the fund were
reduced by an allocation of expenses to the investment adviser or a reduction
in distribution expense by the distributor. Had such action not been
undertaken, net investment income per share and the ratios would have been as
follows:
2002(8) 2001 2000 1999 1998 1997
--------- --------- -------- -------- ----------- ---------
Net investment income per share........ $ 0.284 $ 0.609 $ 0.629 $ 0.615 $ 0.644 $ 0.652
========= ========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses(4) ......................... 1.08%(9) 1.02%(4) 0.97%(4) 0.96%(4) 0.92%(4) 0.95%(4)
========= ========= ========= ========= ========= =========
Expenses after custodian fee
reduction(4)(10)................... 1.06%(9) -- -- -- -- --
========= ========= ========= ========= ========= =========
Net investment income................ 5.39%(9) 5.76% 6.20% 5.97% 6.01% 6.38%
========= ========= ========= ========= ========= =========
------------------------------------------------------------------------------------------------------------------------------
(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
reinvested at the net asset value on the reinvestment date.
(3)Portfolio turnover represents the rate of portfolio activity for the period
while the fund was making investments directly in securities.
(4)Includes each fund's share of its corresponding portfolio's allocated expenses.
(5)Certain of the per share data are based on average shares outstanding.
(6)Represents portfolio turnover rate at the fund's corresponding portfolio.
(7)Under a written agreement in effect for the current fiscal year, Wright
waives all or a portion of either its advisory and/or distribution fees and
assumes operating expenses to the extent necessary to limit expense ratios to
0.95%.
(8)For the six months ended June 30, 2002 (unaudited).
(9)Annualized.
(10) Custodian fees were reduced by credits resulting from cash balances the
fund and the portfolio 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.
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MANAGED INCOME TRUST
---------------------------------------------------------------------------------------------------------------------------
Financial Highlights
Year Ended December 31,
---------------------------------------------------------------------------
Wright Current Income Fund - continued 2002(10) 2001(5) 2000(5) 1999(5) 1998 1997(4)
----------------------------------------------------------------------------------------------------------------------------
Institutional Shares
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.060 $ 9.960 $ 9.600 $ 10.150 $ 10.120 $ 10.000
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income .................. $ 0.288 $ 0.622 $ 0.625 $ 0.620 $ 0.619 $ 0.313
Net realized and unrealized gain (loss).. 0.112 0.094 0.359 (0.560) 0.026 0.120
-------- -------- -------- -------- -------- --------
Total income from
investment operations............. $ 0.400 $ 0.716 $ 0.984 $ 0.060 $ 0.645 $ 0.433
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from investment income......... $ (0.290) $ (0.616) $ (0.624) $ (0.610) $ (0.615) $ (0.313)
-------- -------- -------- -------- -------- --------
Total distributions.................. $ (0.290) $ (0.616) $ (0.624) $ (0.610) $ (0.615) $ (0.313)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 10.170 $ 10.060 $ 9.960 $ 9.600 $ 10.150 $ 10.120
========= ========= ========= ========= ========= =========
Total return(9) ............................ 4.01% 7.34% 10.63% 0.60% 6.56% 4.40%
Ratios/Supplemental Data:(1)
Net assets, end of period (000 omitted).. $ 17,496 $ 18,562 $ 25,695 $ 23,374 $ 23,231 $ 21,801
Ratio of net expenses to average net assets(2) 0.72%(3)(11) 0.70%(8) 0.70%(8) 0.70% 0.75% 0.48%(3)
Ratio of net expenses after custodian fee
reduction to average net assets(8)(11) 0.70%(3) -- -- -- -- --
Ratio of net investment income
to average net assets................. 5.76%(3) 6.11% 6.46% 6.23% 6.11% 4.70%(3)
Portfolio turnover rate ................. 12%(6) 4%(6) 6%(6) 0%(6) 1%(6) 3%(7)
-----------------------------------------------------------------------------------------------------------------------------
(1)For the years ended December 31, 2001 and 2000, the operating expenses of
the fund were reduced by an allocation of expenses to the investment advisor
or a reduction by the principal underwriter. Had such action not been
undertaken, net investment income per share and the ratios would have been as
follows:
2002(10) 2001 2000
--------- --------- ---------
Net investment income per share.......... $ 0.278 $ 0.603 $ 0.619
======== ========== ==========
Ratios (As a percentage of average net assets):
Expenses(2) ........................... 0.92%(3) 0.82% 0.76%
========== ========== ==========
Expenses after custodian fee reduction(3)(11) 0.90%(3) -- --
========= ========= =========
Net investment income.................. 5.56%(3) 5.99% 6.40%
========== ========== ==========
--------------------------------------------------------------------------------------------------------------------
(2)Includes each fund's share of its corresponding portfolio's allocated expenses.
(3)Annualized.
(4)For the period from July 7, 1997 (inception of offering of institutional shares) to December 31, 1997.
(5)Certain of the per share data are based on average shares outstanding.
(6)Represents portfolio turnover rate at the fund's corresponding portfolio.
(7)Portfolio turnover represents the rate of portfolio activity for the period
while the fund was making investments directly in securities.
(8)Under a written agreement in effect for the current fiscal year, Wright
waives all or a portion of either its advisory and/or distribution fees and
assumes operating expenses to the extent necessary to limit expense ratios to
0.70%.
(9)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
reinvested at the net asset value on the reinvestment date.
(10)For the six months ended June 30, 2002 (unaudited).
(11)Custodian fees were reduced by credits resulting from cash balances the
fund and the portfolio 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.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Income Trust (the Trust), issuer of Wright U.S. Treasury
Money Market Fund (WTMM) series, Wright U.S. Government Near Term Fund (WNTB)
series, Wright U.S. Government Intermediate Fund (WUSGI) series, Wright Total
Return Bond Fund (WTRB) series, and Wright Current Income Fund (WCIF) series
(collectively, the Funds), is registered under the Investment Company Act of
1940, as amended, as a diversified, open-end, management investment company.
WNTB, WUSGI, and WCIF invest all of their investable assets in interests in a
separate corresponding open-end management investment company (a Portfolio), a
New York Trust, having the same investment objective as its corresponding fund.
WNTB invests its assets in the Near Term Portfolio, WUSGI invests its assets in
the U.S. Government Intermediate Portfolio, and WCIF invests its assets in the
Current Income Portfolio. The value of each fund's investment in its
corresponding Portfolio reflects the fund's proportionate interest in the net
assets of that Portfolio (99.99%, 88.25%, and 99.99% at June 30, 2002 for WNTB,
WUSGI, and WCIF, respectively). The performance of each fund is directly
affected by the performance of its corresponding Portfolio. The financial
statements of each Portfolio, including the portfolio of investments, are
included elsewhere in this report and should be read in conjunction with each
fund's financial statements. 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 accounting principles
generally accepted in the United States of America.
A. Investment Valuations - For WTRB investments 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
market value. WTMM's money market instruments are valued at amortized cost,
which the Trustees have determined in good faith constitutes market 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. Valuation of securities by WNTB, WUSGI, and WCIF are
discussed in Note 1A of the Portfolios' Notes to Financial Statements
which are included elsewhere in this report.
B. Interest Income - For WTMM and WTRB, 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. The net investment income of WNTB, WUSGI, and WCIF consists of
the fund's pro rata share of the net investment income of its corresponding
Portfolio, less all actual and accrued expenses of each fund determined in
accordance with accounting principles generally accepted in the United
States of America.
C. Expense Reduction - The funds have entered into an arrangement with their
custodian agent whereby interest earned on uninvested cash balances is used
to offset custodian fees. All significant reductions are reported as a
preliminary reduction of total 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,
2001, the Trust, for federal income tax purposes, had capital loss
carryovers of $7,867,964 (WNTB), $2,729,896 (WTRB), and $1,632,160 (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:
<PAGE>
12/31 WNTB WTRB WCIF
-------------------------------------------------------------------------------
2002 $6,668,565 $ - $676,782
2003 376,568 - 215,933
2004 - - 113,252
2005 188,862 - 19,428
2006 62,582 - -
2007 297,581 - 66,159
2008 273,806 2,729,896 289,504
2009 - - 251,102
------------------------------------------------------------------------------
At December 31, 2001, net capital losses of $860,226 for WTRB and $22,014
for WCIF attributable to security transactions incurred after October 31,
2001 are treated as arising on the first day of the fund's current taxable
year.
E. Use of Estimates - The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America 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.
G. Multiple Classes of Shares of Beneficial Interest - Each fund is authorized
to offer a standard share class and an institutional share class. The share
classes differ in their respective distribution, service fees and other
class specific expenses. All shareholders bear the common expenses of the
fund pro rata based on the average daily net assets of each class, without
distinction between share classes. Dividends are declared separately for
each class. Each class has equal rights as to voting, redemption,
dividends, and liquidation. At June 30, 2002, only WCIF had an
institutional share class.
H. Reclassifications - Certain amounts in the prior periods' financial
statements have been reclassified to conform to the current year's
presentation.
I. Interim Financial Information - The interim financial statements relating
to June 30, 2002 and for the six month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Trust's management, reflect all adjustments, consisting only of
normally recurring adjustments, necessary for the fair presentation of the
financial statements.
(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 substantially
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.
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.
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service, Inc. (Wright) to act as
investment adviser to the funds pursuant to the respective Investment Advisory
Contracts. Wright furnishes each fund with 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 six months ended June 30, 2002, for
WTMM and WTRB the effective annual rate was 0.35% and 0.45%, respectively. The
Portfolios have engaged Wright to render investment advisory services. (See Note
2 of the Portfolios' Notes to Financial Statements which are included elsewhere
in this report.) To enhance the net income of WTMM, Wright made a preliminary
reduction of its investment adviser fee by $29,227. In addition, Wright was
preliminarily allocated expenses of $55,000, $32,168, $15,820, and $31,929 on
behalf of WTMM, WUSGI, WTRB, and WCIF, respectively.
<PAGE>
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 six months ended June
30, 2002, the effective annual rate was 0.07% for WTMM, 0.02% for WNTB, 0.02%
for WUSGI, 0.07% for WTRB, and 0.02% 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 employees of 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 wholly-owned subsidiary of Winthrop, at an annual
rate of 0.25% of the Standard shares average daily net assets of each fund for
activities primarily intended to result in the sale of each fund's Standard
shares. To enhance the net income of WNTB, WUSGI, WTRB, and WCIF, the Principal
Underwriter made a preliminary reduction of its fee by $41,510, $12,259,
$25,380, and $17,330, respectively.
In addition, the Trustees have adopted a service plan (the Service Plan) which
allows the funds to reimburse the Principal Underwriter for payments to
intermediaries for providing account administration and personal and account
maintenance services to their customers who are beneficial owners of shares. The
amount of service fee payable under the Service Plan with respect to each class
of shares may not exceed 0.25% annually of the average daily net assets
attributable to the respective classes. For the six months ended June 30, 2002,
the funds did not accrue or pay any service fees.
(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:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 2002 December 31, 2001
---------------------------------------------------------------
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------------------------
Wright U.S. Government Near Term Fund--
<S> <C> <C> <C> <C>
Sales................................................ 473,341 $ 4,878,833 1,365,316 $ 13,985,447
Issued to shareholders in payment of distributions
declared............................................ 41,153 423,331 103,978 1,063,991
Redemptions.......................................... (626,181) (6,439,211) (1,858,949) (18,980,280)
----------- -------------- ----------- --------------
Net decrease..................................... (111,687) $ (1,137,047) (389,655) $ (3,930,842)
============= ================= ============= =================
Wright U.S. GOVERNMENT INTERMEDIATE Fund--
Sales................................................ 64,556 $ 874,521 307,197 $ 4,219,756
Issued to shareholders in payment of distributions
declared............................................ 10,686 145,078 33,008 454,921
Redemptions.......................................... (115,977) (1,572,090) (794,193) (10,825,242)
----------- -------------- ----------- --------------
Net decrease..................................... (40,735) $ (552,491) (453,988) $ (6,150,565)
============= ================= ============= =================
<PAGE>
Wright Total Return Bond Fund--
Sales............................................... 325,590 $ 4,058,409 575,009 $ 7,333,087
Issued to shareholders in payment of distributions
declared............................................ 84,465 1,053,754 191,328 2,438,952
Redemptions.......................................... (677,814) (8,451,047) (1,941,125) (24,715,834)
---------- -------------- ----------- --------------
Net decrease..................................... (267,759) $ (3,338,884) (1,174,788) $ (14,943,795)
============= ================= ============= =================
Wright Current Income Fund -- Standard Shares
Sales................................................ 763,619 $ 8,109,238 1,418,663 $ 15,022,486
Issued to shareholders in payment of distributions
declared............................................ 68,439 728,496 171,018 1,813,111
Redemptions.......................................... (629,289) (6,669,807) (2,893,478) (30,591,063)
----------- -------------- ----------- --------------
Net increase (decrease).......................... 202,769 $ 2,167,927 (1,303,797) $(13,755,466)
============= ============== ============= ===============
Wright Current Income Fund -- Institutional Shares
Issued to shareholders in payment of distributions
declared ........................................... 50,554 $ 511,748 140,115 $ 1,414,140
Redemptions.......................................... (174,471) (1,754,677) (875,313) (8,859,313)
----------- -------------- ----------- --------------
Net decrease..................................... (123,917) $ (1,242,929) (735,198) $ (7,445,173)
============= ================= ============= =================
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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:
Six Months Ended
June 30, 2002
WTRB
-------------------------------------------------------------------------------
Purchases--
Non-U.S. Obligations $ 22,445,725
==============
U.S. Gov't Obligations $ --
==============
Sales--
Non-U.S. Gov't Obligation $ 22,059,416
==============
U.S. Gov't Obligations $ --
==============
Increases and decreases in each fund's investment in its corresponding
Portfolio for the six months ended June 30, 2002 were as follows:
WNTB WUSGI WCIF
------------------------------------------------------------------------------
Increases $ 4,888,053 $ 906,881 $ 7,955,245
Decreases (6,717,895) (1,713,767) (9,341,583)
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 2002, as computed on a federal income tax basis,
are as follows:
WTRB
-------------------------------------------------------------------------------
Aggregate cost............................ $ 45,100,133
=============
Gross unrealized appreciation............. $ 1,572,506
Gross unrealized depreciation............. (121,396)
------------
Net unrealized appreciation............... $ 1,451,110
=============
<PAGE>
(8) LINE OF CREDIT
The funds participate with other funds managed by Wright in a committed $20
million unsecured line of credit agreement with a bank. The funds may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each fund based on its
borrowings at an amount above the federal funds rate. In addition, a fee
computed at an annual rate of 0.10% on the average daily unused portion of the
$20 million line of credit, is allocated among the participating funds at the
end of each quarter. The funds did not have significant borrowings or allocated
fees during the six months ended June 30, 2002. WTRB has $1,075,000 outstanding
at June 30, 2002.
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
-------------------------------------------------------------------------------
SELECTED BLUE CHIP EQUITIES PORTFOLIO (SBCP)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $43,464,895
Unrealized depreciation............... (279,170)
------------
Total investments, at value (Note 1A). $43,185,725
Cash.................................... 345,084
Dividends and interest receivable....... 28,949
Deferred organization expenses (Note 1C) 620
Other assets............................ 356
------------
Total Assets.......................... $43,560,734
------------
LIABILITIES:
Accrued expenses and other liabilities.. $ 7,561
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $43,553,173
=============
NET ASSETS CONSISTS OF:
Net proceeds from capital contributions and
withdrawals............................ $43,832,343
Unrealized depreciation on investments
(computed on the basis of identified cost) (279,170)
------------
Total................................. $43,553,173
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Dividends.............................. $ 161,185
Interest............................... 456
------------
Total income.......................... $ 161,641
------------
Expenses -
Investment adviser fee (Note 2)........ $ 137,719
Administrator fee (Note 2)............. 22,953
Compensation of Trustees not employees of
the investment adviser or administrator 2,220
Custodian fee (Note 1D)................ 29,224
Interest expense....................... 124
Audit fees............................. 23,633
Amortization of organization expenses(Note 1C) 2,862
Miscellaneous.......................... 238
------------
Total expenses........................ $ 218,973
------------
Deduct -
Reduction of custodian fee (Note 1D).. $ (4,039)
------------
Net expenses..................... $ 214,934
------------
Net investment loss........... $ (53,293)
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 4,607,346
Change in unrealized appreciation
on investments ........................ (6,751,849)
------------
Net realized and unrealized loss
on investments......................... $(2,144,503)
------------
Net decrease in net assets
from operations.................... $(2,197,796)
=============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
----------------------------------------------------------------------------------------------------------------------------------
SELECTED BLUE CHIP EQUITIES PORTFOLIO (SBCP)
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment loss........................................................ $ (53,293) $ (1,850)
Net realized gain on investments........................................... 4,607,346 1,742,377
Change in unrealized appreciation
of investments........................................................... (6,751,849) (7,324,472)
------------ ------------
Net decrease in net assets from operations............................... $ (2,197,796) $ (5,583,945)
------------ ------------
Capital transactions -
Contributions.............................................................. $ 7,944,777 $ 15,631,720
Withdrawals................................................................ (8,701,440) (15,363,603)
------------ ------------
Increase (decrease) in net assets resulting from capital transactions........ $ (756,663) $ 268,117
------------ ------------
Net decrease in net assets................................................... $ (2,954,459) $ (5,315,828)
NET ASSETS:
At beginning of period....................................................... 46,507,632 51,823,460
------------ ------------
At end of period............................................................. $ 43,553,173 $ 46,507,632
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
-------------------------------------------------------------------------------
INTERNATIONAL BLUE CHIP EQUITIES PORTFOLIO (IBCP)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $78,063,553
Unrealized depreciation............... (3,390,907)
------------
Total investments, at value (Note 1A). $74,672,646
Cash.................................... 664,429
Foreign currency, at value
(identified cost $32,013).............. 31,982
Tax reclaim receivable.................. 119,646
Dividends and interest receivable....... 150,477
Deferred organization expenses (Note 1C) 621
Other assets............................ 614
------------
Total Assets.......................... $75,640,415
------------
LIABILITIES:
Payable for daily variation margin
on open futures contracts............. $ 24
Accrued expenses and other liabilities.. 27,636
------------
Total Liabilities...................... $ 27,660
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $75,612,755
=============
NET ASSETS CONSISTS OF:
Net proceeds from capital contributions and
withdrawals............................ $79,000,193
Unrealized depreciation on investments
and foreign currency transactions (computed
on the basis of identified cost)....... (3,387,438)
------------
Total................................. $75,612,755
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Dividends.............................. $ 1,213,253
Interest............................... 3,007
Less: Foreign taxes.................... (137,732)
------------
Total income.......................... $ 1,078,528
------------
Expenses -
Investment adviser fee (Note 2)........ $ 308,913
Administrator fee (Note 2)............. 57,921
Compensation of Trustees not employees of
the investment adviser or administrator 2,220
Custodian fee (Note 1D)................ 87,875
Interest expense....................... 3,065
Audit fees............................. 29,092
Amortization of organization expenses
(Note 1C)............................. 2,862
Miscellaneous.......................... 301
------------
Total expenses........................ $ 492,249
------------
Reduction of custodian fee (Note 1D).... (2,377)
------------
Net expenses.......................... $ 489,872
------------
Net investment income................ $ 588,656
------------
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS:
Net realized loss on investment and foreign
currency transactions(identified
cost basis)............................ $(6,444,026)
Change in unrealized depreciation of
investments and translation of assets and
liabilities in foreign currencies...... 5,152,569
------------
Net realized and unrealized loss on
investments and foreign currency....... $(1,291,457)
------------
Net decrease in net assets
from operations.................... $ (702,801)
=============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
-------------------------------------------------------------------------------------------------------------------------------
International Blue Chip Equities Portfolio (IBCP)
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
--------------------------------------------------------------------------------------------------------------------------------
(unaudited)
DECREASE IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 588,656 $ 208,438
Net realized loss on investments........................................... (6,444,026) (11,656,208)
Change in unrealized appreciation (depreciation) on investments............ 5,152,569 (17,821,965)
------------ ------------
Net decrease in net assets from operations............................... $ (702,801) $(29,269,735)
------------ ------------
Capital transactions -
Contributions.............................................................. $ 5,221,667 $ 19,270,774
Withdrawals................................................................ (12,041,779) (36,462,563)
------------ ------------
Decrease in net assets resulting from capital transactions................... $ (6,820,112) $(17,191,789)
------------ ------------
Net decrease in net assets................................................... $ (7,522,913) $(46,461,524)
NET ASSETS:
At beginning of period....................................................... 83,135,668 129,597,192
------------ ------------
At end of period............................................................. $ 75,612,755 $ 83,135,668
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
-------------------------------------------------------------------------------
U.S. GOVERNMENT NEAR TERM PORTFOLIO (NTBP)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $ 34,151,660
Unrealized appreciation............... 622,188
------------
Total investments, at value (Note 1A). $ 34,773,848
Cash.................................... 4,890
Interest receivable..................... 345,540
Other................................... 135
------------
Total assets.......................... $ 35,124,413
------------
LIABILITIES:
Transfer agent fee payable.............. $ 4,650
Accrued expenses and other liabilities.. 456
------------
Total liabilities..................... $ 5,106
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $ 35,119,307
=============
NET ASSETS CONSISTS OF:
Net proceeds from capital contributions and
withdrawals............................ $ 34,497,119
Unrealized appreciation on investments
(computed on the basis of identified cost) 622,188
------------
Total................................. $ 35,119,307
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Interest Income........................ $ 763,286
------------
Expenses -
Investment adviser fee (Note 2)........ $ 78,411
Administrator fee (Note 2)............. 12,198
Compensation of Trustees not employees of
the investment adviser or administrator 2,220
Custodian fee (Note 1D)................ 21,247
Audit fees............................. 20,440
Interest expense....................... 811
Miscellaneous.......................... 207
Amortization of organization expenses
(Note 1C)............................. 2,432
------------
Total expenses........................ $ 137,966
------------
Deduct -
Preliminary reduction of investment
adviser fee (Note 2).................. $ (21,442)
Preliminary reduction of custodian fee
(Note 1D)............................. (3,795)
------------
Total deductions..................... $ (25,237)
------------
Net expenses....................... $ 112,729
------------
Net investment income............ $ 650,557
------------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 171,027
Net change in unrealized appreciation
on investments......................... 49,013
------------
Net realized and unrealized gain
on investments......................... $ 220,040
------------
Net increase in net assets
from operations.................... $ 870,597
=============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT NEAR TERM PORTFOLIO (NTBP)
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 650,557 $ 1,699,579
Net realized gain on investments........................................... 171,027 436,242
Change in unrealized appreciation of investments........................... 49,013 367,359
------------ ------------
Net increase in net assets from operations............................... $ 870,597 $ 2,503,180
------------ ------------
Capital transactions -
Contributions.............................................................. $ 4,888,053 $ 14,050,690
Withdrawals................................................................ (6,717,895) (19,763,460)
------------ ------------
Decrease in net assets resulting from capital transactions................... $ (1,829,842) $ (5,712,770)
------------ ------------
Net decrease in net assets................................................... $ (959,245) $ (3,209,590)
NET ASSETS:
At beginning of period....................................................... 36,078,552 39,288,142
------------ ------------
At end of period............................................................. $ 35,119,307 $ 36,078,552
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
-------------------------------------------------------------------------------
U.S. GOVERNMENT INTERMEDIATE PORTFOLIO (USGIP)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $ 10,336,097
Unrealized appreciation............... 391,991
------------
Total investments, at value (Note 1A). $ 10,728,088
Cash.................................... 66,759
Interest receivable..................... 117,826
------------
Total assets.......................... $ 10,912,673
------------
LIABILITIES:
Accrued investment adviser fee.......... $ 37
Accrued expenses and other liabilities.. 5,191
------------
Total liabilities..................... $ 5,228
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $ 10,907,445
=============
NET ASSETS CONSISTS OF:
Net proceeds from capital contributions and
withdrawals............................ $ 10,515,454
Unrealized appreciation on investments
(computed on the basis of identified cost) 391,991
------------
Total................................. $ 10,907,445
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Interest Income........................ $ 305,386
------------
Expenses -
Investment adviser fee (Note 2)........ $ 24,986
Administrator fee (Note 2)............. 3,887
Compensation of Trustees not employees of
the investment adviser or administrator 2,220
Custodian fee (Note 1D)................ 19,457
Audit fees............................. 17,762
Interest expense....................... 576
Amortization of organization expenses
(Note 1C)............................. 2,378
Miscellaneous.......................... 127
------------
Total expenses........................ $ 71,393
------------
Deduct -
Preliminary reduction of investment adviser fee
(Note 2)............................ $ (24,949)
Preliminary reduction of custodian fee
(Note 1D)............................. (1,289)
------------
Total deductions.................... $ (26,238)
------------
Net expenses........................ $ 45,155
------------
Net investment income............. $ 260,231
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 402,998
Net change in unrealized appreciation
on investments......................... (353,307)
------------
Net realized and unrealized gain
on investments......................... $ 49,691
------------
Net increase in net assets
from operations.................... $ 309,922
=============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
-------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT INTERMEDIATE PORTFOLIO (USGIP)
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 260,231 $ 733,015
Net realized gain on investments........................................... 402,998 196,730
Change in unrealized appreciation of investments........................... (353,307) (271,383)
------------ ------------
Net increase in net assets from operations............................... $ 309,922 $ 658,362
------------ ------------
Capital transactions -
Contributions.............................................................. $ 934,954 $ 4,430,147
Withdrawals................................................................ (1,872,817) (11,648,194)
------------ ------------
Decrease in net assets resulting from capital transactions................... $ (937,863) $ (7,218,047)
------------ ------------
Net decrease in net assets................................................... $ (627,941) $ (6,559,685)
NET ASSETS:
At beginning of period....................................................... 11,535,386 18,095,071
------------ ------------
At end of period............................................................. $ 10,907,445 $ 11,535,386
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
-------------------------------------------------------------------------------
CURRENT INCOME PORTFOLIO (CIFP)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $ 72,270,981
Unrealized appreciation............... 2,333,032
------------
Total investments, at value (Note 1A). $ 74,604,013
Cash.................................... 138,138
Receivable for investments sold......... 10,939
Interest receivable..................... 397,776
Other assets............................ 526
------------
Total assets.......................... $ 75,151,392
------------
LIABILITIES:
Accrued expenses and other liabilities.. $ 7,650
------------
Total liabilities..................... $ 7,650
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $ 75,143,742
=============
NET ASSETS CONSISTS OF:
Net proceeds from capital contributions and
withdrawals............................ $ 72,810,710
Unrealized appreciation on investments
(computed on the basis of identified cost) 2,333,032
------------
Total................................. $ 75,143,742
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2002 (unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Interest Income........................ $ 2,352,777
------------
Expenses -
Investment adviser fee (Note 2)........ $ 164,403
Administrator fee (Note 2)............. 25,574
Compensation of Trustees not employees of
the investment adviser or administrator 2,220
Custodian fee (Note 1D)................ 28,926
Audit fees............................. 20,440
Amortization of organization expenses
(Note 1C)............................. 2,203
Miscellaneous.......................... 2,930
------------
Total expenses........................ $ 246,696
------------
Deduct -
Preliminary reduction of custodian fee
(Note 1D)............................. $ (7,601)
------------
Net expenses........................ $ 239,095
------------
Net investment income............. $ 2,113,682
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (67,687)
Net change in unrealized appreciation
on investments......................... 818,304
------------
Net realized and unrealized gain
on investments......................... $ 750,617
------------
Net increase in net assets
from operations.................... $ 2,864,299
=============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
-----------------------------------------------------------------------------------------------------------------------------
CURRENT INCOME PORTFOLIO (CIFP)
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2002 Dec. 31, 2001
------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 2,113,682 $ 5,119,822
Net realized loss on investments........................................... (67,687) (177,947)
Change in unrealized appreciation on investments........................... 818,304 1,195,719
------------ ------------
Net increase in net assets from operations............................... $ 2,864,299 $ 6,137,594
------------ ------------
Capital transactions -
Contributions.............................................................. $ 7,955,245 $ 15,222,381
Withdrawals................................................................ (9,341,583) (41,344,439)
------------ ------------
Decrease in net assets resulting from capital transactions................... $ (1,386,338) $(26,122,058)
------------ ------------
Net increase (decrease) in net assets........................................ $ 1,477,961 $(19,984,464)
NET ASSETS:
At beginning of period....................................................... 73,665,781 93,650,245
------------ ------------
At end of period............................................................. $ 75,143,742 $ 73,665,781
============= =============
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
-----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTARY DATA
Year Ended December 31
-----------------------------------------------------------------------------------------------------------------------------------
Selected Blue Chip Equities Portfolio (SBCP) 2002(3) 2001 2000 1999 1998 1997(2)
-----------------------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets):++
<S> <C> <C> <C> <C> <C> <C>
Total expenses 0.96%+ 0.89% 0.88% 0.85% 0.77% 0.66%+
Net expenses after custodian fee reduction(1) 0.94%+ 0.88% 0.88% 0.84% 0.77% 0.66%
Net investment income (loss) (0.23%)+ (0.004%) 0.09% 0.67% 0.80% 1.08%+
Portfolio Turnover 80% 67% 55% 106% 78% 28%
Net assets, end of period (000 omitted) $43,553 $46,508 $51,823 $75,483 $221,657 $259,492
Total Return (4.48%) (9.26%)
-----------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
++ For the year ended December 31, 1999, the operating expenses of SBCP reflect
a waiver of the investment adviser fee. Had such action not been taken, the
ratios would have been as follows:
1999
------
Ratios (As a percentage of average daily net assets):
Expenses 0.86%
Expenses after custodian fee reduction(1) 0.85%
Net investment income 0.66%
(1)Reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any offset arrangements with its service providers. The
computation of total expenses to average daily net assets reported above is
computed without consideration of credits in such offset arrangements.
(2)For the period from the start of business, May 2, 1997 to December 31, 1997.
(3)For the six months ended June 30, 2002 (unaudited).
-----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Year Ended December 31
-----------------------------------------------------------------------------------------------------------------------------------
International Blue Chip Equities Portfolio (IBCP) 2002(2) 2001 2000 1999 1998 1997(1)
-----------------------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets):
<S> <C> <C> <C> <C> <C> <C>
Total expenses 1.27%+ 1.18% 1.13% 1.14% 1.01% 0.90%+
Net investment income 1.52%+ 0.21% 1.11% 0.33% 0.77% 0.95%+
Portfolio Turnover 46% 39% 53% 105% 66% 37%
Net assets, end of period (000 omitted) $75,613 $83,136 $129,597 $172,471 $212,231 $257,047
Total Return (0.82%) (22.88%)
-----------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
(1)For the period from the start of business, May 2, 1997 to December 31, 1997.
(2)For the six months ended June 30, 2002 (unaudited).
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
-----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTARY DATA
Year Ended December 31
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Government Near Term Portfolio (NTBP) 2002(3) 2001 2000 1999 1998 1997(2)
-----------------------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets):(1)
<S> <C> <C> <C> <C> <C> <C>
Total expenses(1) 0.67%+ 0.68% 0.69% 0.58% 0.57% 0.46%+
Net expenses after custodian fee reduction 0.65%+ 0.66% 0.66% 0.57% 0.56% 0.45%
Net investment income 3.73%+ 4.68% 5.55% 5.60% 5.68% 6.24%+
Portfolio Turnover 26% 92% 65% 0% 10% 0%
Net assets, end of period (000 omitted) $35,119 $36,079 $39,288 $52,963 $92,200 $102,861
Total Return 2.69% 7.50%
-----------------------------------------------------------------------------------------------------------------------------------
(1)For the year ended December 31, 2001, the operating expenses of NTBP reflect
a reduction of investment adviser fee. Had such action not been taken, the
ratios would have been as follows:
2002 2001
------- ------
Ratios (As a percentage of average daily net assets):
Total expenses 0.79%+ 0.75%
Net expenses after custodian fee reduction 0.77%+ 0.73%
Net investment income 3.61%+ 4.61%
-----------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
(2)For the period from the start of business, May 2, 1997 to December 31, 1997.
(3)For the six months ended June 30, 2002 (unaudited).
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Year Ended December 31
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Government Intermediate Portfolio (USGIP) 2002(3) 2001 2000 1999 1998 1997(2)
-----------------------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets):(1)
<S> <C> <C> <C> <C> <C> <C>
Total expenses(1) 0.84% 0.72% 0.73% 0.60% 0.57% 0.56%+
Net expenses after custodian fee reduction 0.81%+ 0.65% 0.71% 0.58% 0.54% 0.41%
Net investment income 4.69% 5.40% 5.77% 5.57% 5.45% 6.11%+
Portfolio Turnover 77% 27% 74% 0% 7% 0%
Net assets, end of period (000 omitted) $10,907 $11,535 $18,095 $33,753 $67,330 $74,536
Total Return 2.89% 6.12%
-----------------------------------------------------------------------------------------------------------------------------------
(1)For the years ended December 31, 2001, 2000 and 1998, the operating expenses
of USGIP reflect an allocation of expenses to the investment adviser or a
reduction of investment adviser fee. Had such action not been taken, the
ratios would have been as follows:
2002 2001 2000 1998
-------- ------- ------ -------
Ratios (As a percentage of average daily net assets):
Total expenses 1.29%+ 1.05% 0.79% 0.58%
Net expenses after custodian fee reduction 1.26%+ 0.98% 0.77% 0.55%
Net investment income 4.24%+ 5.07% 5.71% 5.44%
-----------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
(2)For the period from the start of business, May 2, 1997 to December 31, 1997.
(3)For the six months ended June 30, 2002 (unaudited).
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
-----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTARY DATA
Year Ended December 31
-----------------------------------------------------------------------------------------------------------------------------------
Current Income Portfolio (CIFP) 2002(3) 2001 2000 1999 1998 1997(2)
-----------------------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets):
<S> <C> <C> <C> <C> <C> <C>
Total expenses 0.68%+ 0.58%(1) 0.62% 0.59% 0.57% 0.48%+
Net expenses after custodian fee reduction 0.66%+ - - - - -
Net investment income 5.80%+ 6.18% 6.54% 6.32% 6.33% 6.66%+
Portfolio Turnover 12% 4% 6% 0% 1% 7%
Net assets, end of period (000 omitted) $75,144 $73,666 $93,650 $99,987 $113,707 $97,765
Total Return 4.11% 7.76%
-----------------------------------------------------------------------------------------------------------------------------------
(1) For the year ended December 31, 2001, the operating expenses of CIFP reflect
a reduction of investment adviser fee. Had such action not been taken, the
ratios would have been as follows:
2001
------
Ratios (As a percentage of average daily net assets):
Total expenses 0.66%
Net expenses after custodian fee reduction -
Net investment income 6.11%
-----------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
(2) For the period from the start of business, May 2, 1997 to December 31, 1997.
(3) For the six months ended June 30, 2002 (unaudited).
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
-------------------------------------------------------------------------------
(1) Significant Accounting Policies
The Wright Blue Chip Master Portfolio Trust (the Trust), issuer of Selected
Blue Chip Equities Portfolio (Selected Portfolio), International Blue Chip
Equities Portfolio (International Portfolio), U.S. Government Near Term
Portfolio (Term Portfolio), U.S. Government Intermediate Portfolio (Intermediate
Portfolio), and Current Income Portfolio (Income Portfolio), collectively the
Portfolios, are registered under the Investment Company Act of 1940 as
non-diversified open-end management investment companies which were organized as
trusts under the laws of the State of New York on March 18, 1997. The
Declaration of Trust permits the Trustees to issue interests in the portfolios.
The following is a summary of significant accounting policies of the portfolios.
The policies are in conformity with accounting principles generally accepted in
the United States of America.
A. Investment Valuations - Securities listed on securities exchanges or in
the NASDAQ National Market are valued at closing sale prices. Securities
traded on more than one U.S. or foreign securities exchange are valued at
the last sale price on the exchange representing the principal market for
such securities, if those prices are deemed to be representative of market
values at the close of business. Unlisted or listed securities, for which
closing sale prices are not available, are valued at the mean between
latest bid and asked prices. Fixed income securities for which market
quotations are readily available are valued on the basis of valuations
supplied by a pricing service. Short-term obligations maturing in sixty
days or less are valued at amortized cost, which approximates fair value.
Securities for which market quotations are unavailable, or deemed not to
be representative of market values at the close of business, are
appraised at their fair value as determined in good faith by or at the
direction of the Trustees of the Trust.
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.
The Trust does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
C. Deferred Organization Expenses - Costs incurred by a portfolio in
connection with its organization are being amortized on the straight-line
basis over five years beginning on the date each portfolio commenced
operations.
D. Expense Reductions - The portfolios have entered into an arrangement with
its custodian whereby interest earned on uninvested cash balances is used
to offset custodian fees. All significant reductions are reported as a
reduction of total expenses in the Statement of Operations.
E. Income Taxes - The portfolios are treated as partnerships for federal tax
purposes. No provision is made by the portfolios for federal or state
taxes on any taxable income of the portfolios because each investor in
the portfolios is ultimately responsible for the payment of any taxes on
its share of such income. Since some of the portfolios' investors are
regulated investment companies that invest all or substantially all of
their assets in the portfolios, the portfolios normally must satisfy the
applicable source of income and diversification requirements (under the
Internal Revenue Code) in order for their respective investors to satisfy
them.The portfolios will allocate at least annually among their respective
investors each investor's distributive share of the portfolios' net
taxable investment income, net realized capital gains and any other
items of income, gain, loss, deductions or credit.
F. Use of Estimates - The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America 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.
<PAGE>
G. Other - Investment transactions are accounted for on a trade date basis.
Dividend income is recorded on the ex-dividend date. However, if the
ex-dividend date has passed, certain dividends from foreign securities are
recorded as the portfolio is informed of the ex-dividend date. 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.
H. Forward Foreign Currency Contracts - The International Portfolio may enter
into forward foreign currency exchange contracts for the purchase or sale
of a specific foreign currency at a fixed price on a future date. Risks may
arise upon entering these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
The International Portfolio will enter into forward contracts for hedging
purposes in connection with purchases and sales of securities denominated
in foreign currencies. The forward foreign currency exchange contracts are
adjusted by the daily forward exchange rate of the underlying currency and
any gains or losses are recorded for financial statement purposes as
unrealized until such time as the contracts have been closed or offset.
I. Reclassifications - Certain amounts in the prior periods' financial
statements have been reclassified to conform to the current year's
presentation.
J. Interim Financial Information - The interim financial statements relating
to June 30, 2002 and for the six month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Trust's management, reflect all adjustments, consisting only of
normally recurring adjustments, necessary for the fair presentation of the
financial statements.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service, Inc. (Wright) to act as
investment adviser to the portfolios pursuant to the respective Investment
Advisory Contracts. Wright furnishes each portfolio with 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 six months ended June
30, 2002, the effective annual rate was 0.60% for the Selected Portfolio, 0.80%
for the International Portfolio, 0.45% for the Near Term Portfolio, 0.45% for
the Intermediate Portfolio, and 0.45% for the Income Portfolio. To enhance the
net income of the Near Term Portfolio and Intermediate Portfolio, Wright made a
preliminary reduction of its investment adviser fee by $21,442 and $24,949,
respectively.
The Trust 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 six months ended June
30, 2002, the effective annual rate was 0.10% for the Selected Portfolio, 0.15%
for the International Portfolio, 0.07% for the Near Term Portfolio, 0.07% for
the Intermediate Portfolio, and 0.07% for the Income Portfolio.
Certain of the Trustees and officers of the portfolio are Trustees or
officers of the above organizations. Except as to Trustees of the portfolios who
are not employees of Wright, Trustees and officers receive remuneration for
their services to the portfolios out of the fees paid to Wright.
(3) INVESTMENTS
The Term Portfolio, Intermediate Portfolio, and Income Portfolio invest
primarily in debt securities. The ability of the issuers of these debt
securities held by the portfolios to meet their obligations may be affected by
economic developments in a specific industry or municipality. Purchases and
sales of investments, other than U.S. Government securities and short-term
obligations, for the six months ended June 30, 2002 were as follows:
<PAGE>
<TABLE>
<CAPTION>
Selected International U.S. Gov't. U.S. Gov't. Current
Blue Chip Blue Chip Near Term Intermediate Income
Portfolio Portfolio Portfolio Portfolio Portfolio
-------------------------------------------------------------------------------------------------------------------------------
Purchases -
<S> <C> <C> <C> <C> <C>
Non-U.S. Gov't Obligations $ 36,285,904 $ 35,824,734 $ -- $ -- $ --
============ ============ ============ ============ ============
U.S. Gov't Obligations $ -- $ -- $ 9,155,936 $ 8,383,053 $ 8,837,017
============ ============ ============ ============ ============
Sales -
Non-U.S. Gov't Obligations $(36,626,247) $(43,737,434) $ -- $ -- $ --
============ ============ ============ ============ ============
U.S. Gov't. Obligations $ -- $ -- $ 10,745,911 $ 8,753,828 $ 11,811,375
============ ============ ============ ============ ============
</TABLE>
(4) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 2002, as computed on a federal income tax basis,
are as follows:
<TABLE>
<CAPTION>
Selected International U.S. Gov't. U.S. Gov't. Current
Blue Chip Blue Chip Near Term Intermediate Income
Portfolio Portfolio Portfolio Portfolio Portfolio
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aggregate cost $ 43,464,895 $ 78,063,553 $ 34,151,660 $ 10,336,097 $ 72,270,981
============ ============ ============ ============ ============
Gross unrealized appreciation $ 4,050,123 $ 6,749,643 $ 627,223 $ 564,880 $ 2,333,041
Gross unrealized depreciation (4,329,293) (10,140,550) (5,035) (172,889) (9)
----------- ----------- ----------- ----------- -----------
Net unrealized appreciation (depreciation) $ (279,170) $ (3,390,907) $ 622,188 $ 391,991 $ 2,333,032
============ ============ ============ ============ ============
</TABLE>
(5) FINANCIAL INSTRUMENTS
The portfolios 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 contracts
for the International Portfolio. The notional or contractual amounts of these
instruments represent the investment the portfolio has 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 June 30, 2002, the International Portfolio had no open forward
foreign currency exchange contracts.
<PAGE>
(6) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
The International Portfolio'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 International
Portfolio, 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 International Portfolio's assets. International Portfolio may be
unable to sell securities where the registration process is incomplete and may
experience delays in receipt of dividends.
(7) LINE OF CREDIT
The portfolios participate with other funds managed by Wright in a
committed $20 million unsecured line of credit agreement with a bank. The
portfolios may temporarily borrow from the line of credit to settle investment
transactions. Interest is charged to each portfolio based on its borrowings at
an amount above the federal funds' rate. In addition, a fee computed at an
annual rate of 0.10% on the average daily unused portion of the $20 million line
of credit, is allocated among the participating funds and portfolios at the end
of each quarter. The portfolios did not have significant borrowings during the
six months ended June 30, 2002. At June 30, 2002, there were no loans
outstanding under the credit facility.
<PAGE>
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
-------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2002 (unaudited)
Equity Interests -- 99.9%
Shares Value
AUTOMOBILES & COMPONENTS -- 1.5%
Ford Motor Co. Del.................. 26,500 $ 424,000
General Motors Corp................. 7,700 411,565
Johnson Controls.................... 4,000 326,440
-----------
$ 1,162,005
-----------
BANKS -- 7.5%
Bank of America Corp................ 34,700 $ 2,441,492
Bank One Corp....................... 19,800 761,904
Charter One Fin'l. Inc.............. 10,200 350,676
Fifth Third Bancorp................. 12,700 846,455
Union Planters Corp................. 11,450 370,637
Wachovia Corp....................... 17,000 649,060
Washington Mutual................... 9,500 352,545
-----------
$ 5,772,769
-----------
PITAL GOODS -- 8.9%
3M Company.......................... 10,700 $ 1,316,100
Caterpillar Inc..................... 8,700 425,865
Danaher Corp........................ 4,700 311,845
General Dynamics Corp............... 6,100 648,735
General Electric Co................. 61,700 1,792,385
Illinois Tool Works Inc............. 9,300 635,190
Ingersoll-Rand Co. Cl A............. 8,000 365,280
ITT Industries Inc.................. 8,000 564,800
Lockheed Martin..................... 5,100 354,450
Northrop Grumman.................... 3,400 425,000
-----------
$ 6,839,650
-----------
COMMERCIAL SERVICES & SUPPLIES -- 1.6%
Avery Dennison Corp................. 7,900 $ 495,725
Concord EFS Inc..................... 23,100 696,234
-----------
$ 1,191,959
-----------
COMMUNICATIONS EQUIPMENT -- 2.6%
Cisco Systems, Inc.*................ 91,900 $ 1,282,005
Motorola Inc........................ 47,700 687,834
-----------
$ 1,969,839
-----------
COMPUTER & PERIPHERALS -- 3.0%
Apple Computer Inc.................. 8,900 $ 157,708
Dell Computer Corp.*................ 57,200 1,495,208
Hewlett-Packard Co.................. 17,300 264,344
Lexmark Int'l. Inc. CL A............ 7,000 380,800
-----------
$ 2,298,060
-----------
CONSUMER DURABLES & APPAREL -- 3.6%
Centex Corp......................... 11,400 $ 658,806
Leggett & Platt..................... 12,500 292,500
Liz Claiborne Inc................... 16,300 518,340
Newell Rubbermaid Inc............... 20,800 729,248
Whirlpool Corp...................... 8,800 575,168
-----------
$ 2,774,062
-----------
DIVERSIFIED FINANCIALS -- 6.7%
Ambac Inc........................... 7,000 $ 470,400
American Express Co................. 16,500 599,280
Bear Stearns Cos. Inc............... 8,800 538,560
Citigroup Inc....................... 39,700 1,538,375
Countrywide Cr. Ind. Inc............ 7,900 381,175
H&R Block........................... 5,200 239,980
JP Morgan Chase & Co................ 24,600 834,432
Providian Financial................. 33,900 199,332
SLM Corp............................ 3,700 358,530
-----------
$ 5,160,064
-----------
ENERGY -- 7.6%
Amerada Hess Corp................... 4,900 $ 404,250
Apache Corp......................... 7,000 402,360
B.J. Services....................... 6,300 213,444
Baker Hughes Inc.................... 5,500 183,095
ChevronTexaco Corp.................. 9,700 858,450
EOG Resources Inc................... 6,800 269,960
Exxon Mobil Corp.................... 59,812 2,447,507
Noble Corp.......................... 6,400 247,040
Occidental Petroleum................ 19,800 593,802
Transocean Inc...................... 6,500 202,475
-----------
$ 5,822,383
-----------
FOOD & DRUG RETAILING -- 1.2%
CVS Corp............................ 9,100 $ 278,460
Supervalu Inc....................... 6,900 169,257
Walgreen............................ 11,300 436,519
-----------
$ 884,236
-----------
FOOD, BEVERAGE & TOBACCO -- 5.3%
Adolph Coors Co..................... 2,400 $ 149,520
Anheuser Busch Cos. Inc............. 6,800 340,000
Coca Cola Co........................ 27,300 1,528,800
Conagra Foods....................... 12,300 340,095
Philip Morris Cos. Inc.............. 26,500 1,157,520
Wrigley (Wm.) Jr. Co................ 9,400 520,290
-----------
$ 4,036,225
-----------
<PAGE>
HEALTH CARE EQUIPMENT & SERVICES -- 6.8%
AmerisourceBergen Corp.............. 7,900 $ 600,400
Boston Scientific Corp.............. 21,000 615,720
Cigna Corp.......................... 4,500 438,390
Health Mngt Assoc. Inc-A............ 21,100 425,165
Humana Inc.......................... 17,500 273,525
St. Jude Medical.................... 6,400 472,640
Tenet Healthcare Corp............... 9,900 708,345
UnitedHealth Group Inc.............. 14,100 1,290,855
Zimmer Holdings Inc................. 11,400 406,524
-----------
$ 5,231,564
-----------
HOTELS, RESTAURANTS & LEISURE -- 1.9%
Cendant corp........................ 18,200 $ 289,016
McDonald's Corp..................... 41,900 1,192,055
-----------
$ 1,481,071
-----------
HOUSEHOLD & PERSONAL PRODUCTS -- 3.3%
Gillette Co......................... 21,400 $ 724,818
Procter & Gamble.................... 20,000 1,786,000
-----------
$ 2,510,818
-----------
INSURANCE -- 4.7%
Aflac Inc........................... 8,700 $ 278,400
American Int'l. Group............... 11,300 770,999
Marsh & McLennan Cos., Inc.......... 5,000 483,000
MBIA Inc............................ 14,100 797,073
MGIC Investment Corp................ 6,600 447,480
Progressive Corp.................... 14,600 844,610
-----------
$ 3,621,562
-----------
MATERIALS -- 4.2%
Air Products & Chems................ 5,900 $ 297,773
Alcoa Inc........................... 7,900 261,885
Engelhard Corp...................... 7,500 212,400
International Paper Co.............. 10,800 470,664
Nucor Corp.......................... 5,500 357,720
Pactiv Corp......................... 22,500 535,500
Phelps Dodge Corp................... 4,200 173,040
Sealed Air Corp..................... 6,300 253,701
Sigma-Aldrich....................... 6,200 310,930
Temple-Inland Inc................... 6,200 358,732
-----------
$ 3,232,345
-----------
MEDIA -- 2.6%
Knight Ridder Inc................... 4,100 $ 258,095
Viacom, Inc. Class B................ 39,400 1,748,178
-----------
$ 2,006,273
-----------
PHARMACEUTICALS & BIOTECHNOLOGY -- 7.0%
Abbott Laboratories................. 13,400 $ 504,510
Johnson & Johnson................... 39,200 2,048,592
Pfizer Inc.......................... 54,200 1,897,000
Pharmacia Corp...................... 23,300 872,585
-----------
$ 5,322,687
-----------
RETAILING -- 5.3%
Autozone Inc........................ 3,100 $ 239,630
Bed Bath & Beyond Inc............... 14,100 532,134
GAP, Inc. (The)..................... 15,600 221,520
Kohl's Corp......................... 8,200 574,656
Limited Brands...................... 18,200 387,660
Lowes Cos. Inc...................... 14,700 667,380
Staples Inc......................... 23,200 457,040
Target Corp......................... 15,100 575,310
Tiffany & Co........................ 10,400 366,080
-----------
$ 4,021,410
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS-- 2.8%
Intel Corp.......................... 56,800 $ 1,037,736
KLA-Tencor Corp..................... 10,500 461,895
Nat'l. Semiconductor Corp........... 13,600 396,712
Qlogic Corp......................... 7,400 281,940
-----------
$ 2,178,283
-----------
<PAGE>
SOFTWARE & SERVICES -- 5.8%
Computer Science.................... 5,200 $ 248,560
IBM................................. 9,300 669,600
Intuit Inc.......................... 5,000 248,600
Mercury Interactive Corp............ 5,800 133,168
Microsoft Corp...................... 52,100 2,849,870
Yahoo! Inc.......................... 22,000 324,720
-----------
$ 4,474,518
-----------
TELECOMMUNICATION SERVICES -- 2.9%
Bellsouth Corp...................... 21,200 $ 667,800
Verizon Communications.............. 38,100 1,529,715
-----------
$ 2,197,515
-----------
TRANSPORTATION -- 0.7%
Union Pacific Corp.................. 8,600 $ 544,208
-----------
UTILITIES -- 2.2%
Calpine Corp........................ 17,400 $ 122,322
DTE Energy Co....................... 5,000 223,200
Nicor Inc........................... 5,300 242,475
Progress Energy Inc................. 10,300 535,703
TXU Corp............................ 10,700 551,585
-----------
$ 1,675,285
-----------
TOTAL EQUITY INTERESTS -- 99.9%
(identified cost, $78,482,207) $ 76,408,791
OTHER ASSETS, LESS LIABILITIES -- 0.1% 106,359
-----------
NET ASSETS -- 100% $ 76,515,150
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT TOTAL RETURN BOND FUND (WTRB)
-----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2002 (unaudited)
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield Maturity
----------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS
FINANCIAL
<S> <C> <C> <C> <C> <C> <C> <C>
$ 550,000 Ameritech Cap Corp 6.150% 01/15/08 $103.921 $ 571,566 5.92% 5.0%
225,000 Banc One Corp 8.000% 04/29/27 112.093 252,209 7.14% 6.8%
500,000 Bank Of New York Co 6.375% 04/01/12 104.183 520,915 6.12% 5.9%
550,000 Boeing Cap Corp 5.650% 05/15/06 103.071 566,891 5.48% 4.7%
600,000 Citigroup Inc 7.250% 10/01/10 108.538 651,228 6.68% 5.9%
350,000 Ford Motor Credit 6.125% 03/20/04 102.131 357,459 6.00% 4.9%
800,000 General Elec Cap Corp 5.000% 02/15/07 101.392 811,136 4.93% 4.8%
350,000 GMAC 6.750% 01/15/06 103.641 362,744 6.51% 5.5%
550,000 Household Finance CO 8.000% 07/15/10 106.676 586,718 7.50% 6.6%
700,000 Citibank Credit Card Issuance Trust 6.900% 10/15/07 107.812 754,684 6.40% 5.0%
500,000 Intl Lease Fin 5.125% 08/01/04 102.102 510,510 5.02% 3.9%
600,000 Key Bank 7.000% 02/01/11 106.451 638,706 6.58% 6.0%
500,000 Lehman Brothers 7.750% 01/15/05 107.894 539,470 7.18% 4.6%
320,000 Meadwestvaco Cor 6.850% 04/01/12 103.630 331,616 6.61% 6.2%
600,000 Morgan J.P. & CO Inc 6.875% 01/15/07 107.236 643,416 6.41% 5.1%
540,000 Wells Fargo & CO 4.800% 07/29/05 101.868 550,087 4.71% 4.1%
935,000 MBNA Master C/C Trust 7.350% 07/16/07 108.218 1,011,838 6.79% 5.1%
INDUSTRIALS
$ 350,000 Albertson's Inc 7.500% 02/15/11 $108.571 $ 379,999 6.91% 6.1%
350,000 Amerada Hess 6.650% 08/15/11 104.049 364,172 6.39% 6.1%
330,000 Centex Corp 7.875% 02/01/11 107.875 355,988 7.30% 6.5%
500,000 Honeywell Inc 7.000% 03/15/07 108.497 542,485 6.45% 4.9%
550,000 IBM Corp 5.625% 04/12/04 103.767 570,719 5.42% 3.2%
580,000 Kimberly-Clark Corp. 6.375% 01/01/28 99.874 579,269 6.38% 6.4%
575,000 Kraft Foods Inc. 6.250% 06/01/12 102.557 589,703 6.09% 5.6%
550,000 Target Corp 7.000% 07/15/31 105.338 579,359 6.65% 6.6%
605,000 Unitedhealth Group Inc 5.200% 01/17/07 100.603 608,648 5.17% 4.8%
525,000 Viacom Inc 7.875% 07/30/30 106.554 559,409 7.39% 7.0%
510,000 Wal-Mart 6.500% 06/01/03 103.725 528,998 6.27% 2.6%
UTILITIES
$ 485,000 Bellsouth Telecom 6.375% 06/15/04 $105.329 $ 510,846 6.05% 3.5%
360,000 Conoco Inc 6.350% 04/15/09 103.524 372,686 6.13% 5.4%
500,000 Duke Energy Corp 6.000% 12/01/28 88.893 444,465 6.75% 6.9%
350,000 Philips Petroleum 6.375% 03/30/09 103.306 361,571 6.17% 5.3%
535,000 PPL Electric Util 5.875% 08/15/07 102.996 551,029 5.70% 5.3%
955,000 Tennessee Valley Auth 6.000% 03/15/13 103.870 991,959 5.78% 5.5%
500,000 Verizon Global 6.750% 12/01/05 103.498 517,490 6.52% 5.6%
------------
Total Corporate Bonds (identified cost, $17,256,016) - 40.4% $19,069,988
------------
GOVERNMENT INTERESTS
U.S. GOVERNMENT AGENCIES
$ 1,000,000 FHLB 5.125% 03/06/06 $103.938 $ 1,039,380 4.93% 4.0%
530,000 FHLB 5.800% 09/02/08 105.719 560,311 5.49% 4.7%
500,000 FHLMC 3.250% 01/15/04 101.034 505,170 3.22% 2.6%
750,000 FHLMC 4.875% 03/15/07 102.214 766,605 4.77% 4.3%
40,000 FHLMC 5.750% 04/15/08 105.468 42,187 5.45% 4.7%
<PAGE>
U.S. GOVERNMENT AGENCIES - continued
------------------------------------
$ 900,000 FNMA 7.125% 02/15/05 $109.008 $ 981,072 6.54% 3.5%
440,000 FNMA 5.740% 01/21/09 102.014 448,862 5.63% 5.4%
FNMA
$ 1,004,062 FNMA Pool #597396 6.500% 09/01/31 $101.937 $ 1,023,511 6.38% 6.1%
730,031 FNMA Pool #634823 6.500% 03/01/32 101.937 744,172 6.38% 6.2%
386,018 FNMA Pool #479477 6.000% 01/01/29 100.187 386,740 5.99% 6.5%
386,702 FNMA Pool #489357 6.500% 03/01/29 102.125 394,919 6.36% 6.0%
389,612 FNMA Pool #535332 8.500% 04/01/30 106.687 415,665 7.97% 3.7%
494,188 Freddie Mac Pool #E00903 7.000% 10/01/15 105.062 519,204 6.66% 5.8%
FHLMC
$ 404,463 FGLMC Pool #c27663 7.000% 06/01/29 103.625 $ 419,125 6.76% 6.7%
GNMA
$ 477,107 GNMA II Pool #2671 6.000% 11/20/28 $ 99.813 $ 476,215 6.01% 6.2%
270,748 GNMA Pool #0510706 8.000% 11/15/29 106.656 288,769 7.50% 6.1%
159,232 GNMA Pool #2909 8.000% 04/20/30 106.063 168,886 7.54% 6.2%
605,853 GNMA Pool #2972 7.500% 09/20/30 104.969 635,958 7.14% 6.6%
202,540 GNMA Pool #2973 8.000% 09/20/30 106.063 214,820 7.54% 6.3%
1,702,523 GNMA Pool #374892 7.000% 02/15/24 104.406 1,777,536 6.70% 7.8%
374,236 GNMA Pool #376400 6.500% 02/15/24 102.749 384,524 6.33% 6.0%
574,072 GNMA Pool #379982 7.000% 02/15/24 104.406 599,366 6.70% 7.8%
793,310 GNMA Pool #410081 8.000% 08/15/25 107.000 848,842 7.48% 6.1%
641,180 GNMA Pool #427199 7.000% 12/15/27 104.031 667,026 6.73% 7.7%
309,408 GNMA Pool #436214 6.500% 02/15/13 104.655 323,811 6.21% 5.4%
296,174 GNMA Pool #442996 6.000% 06/15/13 102.781 304,411 5.84% 7.3%
883,227 GNMA Pool #448490 7.500% 03/15/27 106.094 937,051 7.07% 5.3%
1,020,257 GNMA Pool #458762 6.500% 01/15/28 102.406 1,044,806 6.35% 7.6%
917,826 GNMA Pool #460726 6.500% 12/15/27 102.406 939,909 6.35% 7.6%
608,867 GNMA Pool #463839 6.000% 05/15/13 102.781 625,800 5.84% 7.4%
590,484 GNMA Pool #478072 6.500% 05/15/28 102.375 604,508 5.84% 6.5%
294,699 GNMA Pool #488924 6.500% 11/15/28 102.375 301,699 6.35% 4.1%
U.S. TREASURIES
$ 1,750,000 U.S. Treasury Bonds 7.250% 05/15/16 $117.855 $ 2,062,463 6.15% 5.4%
550,000 U.S. Treasury Bonds 6.125% 08/15/29 106.205 584,128 5.77% 5.7%
750,000 U.S. Treasury Notes 3.625% 03/31/04 101.546 761,595 3.57% 2.7%
1,950,000 U.S. Treasury Notes 7.500% 02/15/05 110.703 2,158,709 6.77% 3.2%
2,450,000 U.S. Treasury Notes 4.625% 05/15/06 103.000 2,523,500 4.49% 3.8%
-----------
Total Government Interests (identified cost, $27,844,117) - 58.3% $27,481,255
-----------
Total Investments (identified cost, $45,100,133) - 98.7% $46,551,243
Other Assets, less Liabilities - 1.3% 619,523
-----------
Net Assets -- 100.0% $47,170,766
============
Average Maturity - 6.4 Years
See notes to financial statements
</TABLE>
<PAGE>
SELECTED BLUE CHIP EQUITIES PORTFOLIO (SBCP)
------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2002 (unaudited)
Equity Interests -- 99.2%
Shares Value
AUTOMOBILES & COMPONENTS -- 0.8%
Gentex Corp......................... 11,900 $ 326,893
-----------
BANKS -- 11.6%
City National Corp.................. 6,800 $ 365,500
Commerce Bancorp Inc/NJ............. 8,100 358,020
Golden State Bancorp................ 21,600 783,000
Greenpoint Financial Corp........... 16,700 819,970
M&T Bank Corp....................... 4,900 420,224
Mercantile Bankshares Corp.......... 11,300 463,639
Nat'l. Commerce Financial Corp...... 16,900 444,470
North Fork Bancorporation........... 16,200 644,922
Roslyn Bancorp Inc.................. 10,400 227,032
TCF Financial Corp.................. 7,500 368,250
Westamerica Bancorp................. 4,300 170,108
-----------
$ 5,065,135
-----------
CAPITAL GOODS -- 8.1%
Agco Corp........................... 13,700 $ 267,150
Ametek Inc. New..................... 4,300 160,175
Donaldson Co. Inc................... 8,700 304,848
Fastenal Co......................... 6,600 254,166
Flowserve Corp...................... 8,700 259,260
Hubbell (Harvey) Inc................ 7,700 262,955
Jacobs Engineering.................. 7,800 271,284
L-3 Communications Hldgs............ 9,700 523,800
Pentair Inc......................... 4,300 206,744
Precision Castparts Corp............ 3,300 108,900
SPX Corp.*.......................... 2,200 258,500
Teleflex Inc........................ 3,300 188,595
Vishay Intertechnology Inc.......... 21,100 464,200
-----------
$ 3,530,577
-----------
COMMERCIAL SERVICES & SUPPLIES -- 4.9%
Bisys Group Inc..................... 14,000 $ 466,200
Ceridan Corp - New.................. 12,000 227,760
Choicepoint Inc..................... 9,333 424,372
DST Systems Inc.*................... 10,300 470,813
Dun & Bradstreet Corp............... 6,500 214,825
Manpower Inc........................ 6,000 220,500
NCO Group Inc....................... 4,300 93,654
-----------
$ 2,118,124
-----------
COMPUTERS & PERIPHERALS -- 0.3%
Storage Technology Corp............. 9,300 $ 148,521
-----------
CONSUMER DURABLES & APPAREL -- 3.6%
Coach Inc........................... 4,900 $ 269,010
Furniture Brands Int'l. Inc......... 7,100 214,775
Lennar Corp......................... 8,200 501,840
Mohawk Inds. Inc.................... 6,000 369,180
Timberland Co....................... 6,000 214,920
-----------
$ 1,569,725
-----------
DIVERSIFIED FINANCIALS -- 4.7%
Americredit Corp.................... 4,300 $ 120,615
Compass Bancshares IN............... 9,800 329,280
E*trade Group Inc................... 20,200 110,292
Eaton Vance Corp.................... 7,000 218,400
Edwards (A.G.) Inc.................. 13,500 524,745
Legg Mason Inc...................... 8,700 429,258
Metris Companies Inc................ 3,300 27,423
SEI Investments Co.................. 10,200 287,334
-----------
$ 2,047,347
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS-- 1.6%
Arrow Electrs. Inc. Com............. 6,500 $ 134,875
Avnet Inc........................... 16,200 356,238
Diebold, Inc........................ 6,000 223,440
-----------
$ 714,553
-----------
ENERGY -- 7.4%
Cooper Cameron Corp................. 6,500 $ 314,730
Ensco Int'l. Inc.................... 20,500 558,830
Equitable Resources Inc............. 9,600 329,280
Murphy Oil Corp..................... 3,200 264,000
National Oilwell Inc................ 7,000 147,350
Patterson-Uti Energy Inc............ 8,000 225,840
Smith Int'l. Inc.................... 9,700 661,443
Weatherford Intl. Ltd............... 11,400 492,480
Western Gas Resources............... 5,900 220,660
-----------
$ 3,214,613
-----------
FOOD, BEVERAGE & TOBACCO -- 5.2%
Dean Foods Co. New.................. 8,700 $ 324,510
Dreyer's Grand Ice Cream Inc........ 8,600 589,960
McCormick & Co...................... 8,600 221,450
Smucker Co. (J.M.) New.............. 10,679 364,474
Tyson Foods Inc.-Cl A............... 50,200 778,602
-----------
$ 2,278,996
-----------
<PAGE>
HEALTH CARE EQUIPMENT & SERVICES-- 8.3%
Apogent Tech Inc.................... 16,200 $ 333,234
Covance Inc......................... 9,100 170,625
Dentsply Int'l. Inc................. 14,550 537,040
Express Scripts Inc-CL A............ 8,600 430,946
First Health Group Corp............. 8,100 227,124
Health Net Inc...................... 9,900 265,023
Lifepoint Hospitals Inc............. 5,700 206,967
Oxford Health Plans................. 6,000 278,760
Quest Diagnostics Inc............... 7,000 602,350
Schein Henry Inc.................... 4,300 191,350
Triad Hospitals Inc................. 8,500 360,230
-----------
$ 3,603,649
-----------
HOTELS, RESTAURANTS & LEISURE -- 3.1%
Brinker International Inc.*......... 15,150 $ 481,012
Gtech Holdings Corp................. 11,800 301,372
Park Place Entertainment............ 53,500 548,375
-----------
$ 1,330,759
-----------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.4%
Dial Corp........................... 9,100 $ 182,182
-----------
INSURANCE -- 4.0%
American Financial Group, Inc....... 8,100 $ 193,590
Everest Re Group Ltd................ 7,700 430,815
Protective Life Corp................ 15,100 499,810
Radian Group Inc.................... 12,500 610,625
-----------
$ 1,734,840
-----------
MATERIALS -- 3.7%
Airgas Inc.......................... 25,400 $ 439,420
H.B. Fuller Co...................... 17,800 521,362
RPM Inc/Ohio........................ 15,500 236,375
Sonoco Products..................... 8,400 237,888
Valspar Corp........................ 3,800 171,532
-----------
$ 1,606,577
-----------
MEDIA -- 4.1%
Emmis Communications................ 9,900 $ 209,781
Entercom Communications Corp........ 4,900 224,910
Harte-Hanks Inc..................... 12,300 252,765
Hispanic Broadcasting Corp.......... 10,200 266,220
Westwood One Inc.................... 25,400 848,868
-----------
$ 1,802,544
-----------
PHARMACEUTICALS & BIOTECHNOLOGY -- 4.0%
Barr Laboratories*.................. 8,800 $ 559,064
Edwards Lifesciences Cp-WI.......... 3,300 76,560
Gilead Sciences Inc................. 10,800 355,104
ICN Pharmaceutical.................. 10,300 249,363
Idec Pharmaceuticals Corp.*......... 9,900 350,955
Millennium Pharmaceuticals.......... 11,800 143,370
-----------
$ 1,734,416
-----------
RETAILING -- 4.3%
American Eagle Outfitters........... 16,600 $ 350,924
Barnes & Noble Inc.................. 9,600 253,728
BJ's Wholesale Club................. 10,000 385,000
CDW Computer Centers Inc.*.......... 8,800 411,928
Neiman Marcus Grp Cl A.............. 6,000 208,200
Williams-Sonoma Inc................. 8,200 251,412
-----------
$ 1,861,192
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS-- 4.8%
Atmel Corp......................... 52,900 $ 331,154
Fairchild Semicon. Int'l. - Cl A.... 8,700 211,410
Integrated Device Technology Inc.*.. 13,500 244,890
International Rectifier Corp........ 5,400 157,410
Lam Research Corp................... 15,100 271,498
Microchip Technology Inc............ 17,850 489,626
Rf Micro Devices Inc................ 20,000 152,400
Semtech Corp........................ 8,100 216,270
-----------
$ 2,074,658
-----------
SOFTWARE & SERVICES -- 7.6%
Advent Software Inc................. 5,900 $ 151,630
Affiliated Computer Services Inc.... 9,700 460,556
Cadence Design Sys. Inc............. 22,700 365,924
Electronic Arts Inc.*............... 11,900 785,995
Henry Jack & Assoc.................. 13,500 225,315
Reynolds & Reynolds................. 9,700 271,115
SunGard Data Systems*............... 20,500 542,840
Symantec Corp.*..................... 15,100 496,035
-----------
$ 3,299,410
-----------
TELECOMMUNICATION SERVICES -- 0.7%
Telephone & Data Systems............ 5,400 $ 326,970
-----------
<PAGE>
TRANSPORTATION -- 1.6%
C.H. Robinson Worldwide Inc......... 21,100 $ 707,483
-----------
UTILITIES -- 4.4%
American Water Works, Inc........... 6,000 $ 259,260
Northeast Utilities................. 7,000 131,670
Ocean Energy Inc.................... 12,500 270,875
Questar Corp........................ 19,400 479,180
Scana Corp.......................... 24,800 765,576
-----------
$ 1,906,561
-----------
TOTAL EQUITY INTERESTS-- 99.2%
(identified cost, $43,464,895) $ 43,185,725
OTHER ASSETS,
LESS LIABILITIES -- 0.8% 367,448
-----------
NET ASSETS -- 100% $ 43,553,173
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
INTERNATIONAL BLUE CHIP EQUITIES PORTFOLIO (IBCP)
-------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2002 (unaudited)
Equity Interests -- 94.4%
Shares Value
AUSTRALIA -- 2.2%
Aust & Nz Bank Grp ............ 61,550 $ 666,488
Natl Australia Bk ............ 37,050 736,250
Tabcorp Hldgs Ltd ............ 38,300 268,747
-----------
$ 1,671,485
-----------
BELGIUM -- 0.4%
Colruyt Sa ............ 5,900 $ 276,774
-----------
CANADA -- 2.6%
Bank Nova Scotia Hal ............ 32,200 $ 1,058,372
Biovail Corp ............ 7,200 208,512
Cdn Imperial Bk Of C ............ 17,200 549,622
Celestica Inc ............ 7,900 179,409
-----------
$ 1,995,915
-----------
FINLAND -- 1.9%
Upm-Kymmene Oyj..................... 36,000 $ 1,417,162
-----------
FRANCE -- 7.8%
Alcatel ............ 24,019 $ 166,997
Atos Origin ............ 4,000 254,800
Aventis ............ 8,100 570,483
Axa ............ 28,625 523,560
Bnp Paribas ............ 17,998 995,387
Carrefour ............ 6,247 338,089
Sanofi-Synthelabo ............ 4,734 287,997
Seb Sa ............ 7,233 636,466
Tf1 - Tv Francaise ............ 10,900 291,833
Total Fina Elf ............ 7,155 1,161,691
Vivendi Universal ............ 14,725 318,187
Zodiac ............ 15,500 379,632
-----------
$ 5,925,122
-----------
GERMANY -- 9.1%
Allianz Ag ............ 2,500 $ 500,711
Altana Ag ............ 8,100 407,976
Basf Ag ............ 8,770 406,644
Bayer Motoren Werk ............ 11,400 470,046
Buderus Ag ............ 14,700 332,454
Continental Ag ............ 8,940 158,041
Deutsche Bank Ag ............ 9,300 646,140
E.On Ag ............ 23,800 1,386,783
Gehe Ag ............ 13,300 564,806
Marschollek Lauten ............ 5,500 171,644
Rhoen-Klinikum Ag ............ 4,650 225,024
Sap Ag ............ 3,100 306,155
Schering Ag ............ 9,100 569,334
Siemens Ag ............ 12,100 725,956
-----------
$ 6,871,714
-----------
GREECE -- 0.9%
Coca-Cola Hell Bot ............ 15,670 $ 265,252
Ote(Hellenic Tlcm) ............ 24,900 393,457
-----------
$ 658,709
-----------
HONG KONG -- 1.0%
China Mobile (Hk) ............ 90,400 $ 267,729
Hutchison Whampoa ............ 65,900 492,141
-----------
$ 759,870
-----------
IRELAND -- 2.9%
Allied Irish Banks ............ 53,400 $ 709,323
Anglo Irish Bank ............ 61,600 397,258
Bk Of Ireland ............ 87,720 1,092,430
-----------
$ 2,199,011
-----------
ITALY -- 1.4%
Eni S P A ............ 12,900 $ 1,032,000
-----------
JAPAN -- 14.7%
Aderans Co ............ 6,400 $ 200,767
Belluna Co Ltd ............ 4,700 183,514
Canon Inc ............ 14,000 529,117
Daikin Industries ............ 20,000 366,260
Eisai Co ............ 16,000 411,146
Familymart Co ............ 7,600 183,881
Fanuc ............ 7,500 376,690
Fuji Photo Film Co ............ 9,000 290,589
Honda Motor Co ............ 24,000 973,135
Ito-Yokado Co ............ 6,000 300,350
Kao Corp ............ 8,000 184,215
Keyence Corp ............ 1,000 211,831
Nissan Motor Co ............ 42,000 290,837
Ntt Docomo ............ 475 1,169,072
Orix Corp ............ 6,000 484,065
Promise Co ............ 5,500 277,157
Ricoh Co ............ 21,000 363,550
Rohm Co Ltd ............ 2,000 298,515
Shin-Etsu Chemical ............ 22,000 945,270
Smc Corp ............ 4,000 472,885
Sony Corp ............ 12,600 665,426
Takeda Chem Inds ............ 18,000 789,921
Toyota Motor Corp ............ 42,700 1,132,874
-----------
$ 11,101,067
-----------
KOREA -- 0.9%
Kt Corp ............ 20,100 $ 435,165
Sk Telecom Ltd ............ 11,400 282,606
-----------
$ 717,771
-----------
MEXICO -- 1.8%
Cemex S A ............ 26,496 $ 698,435
Telefonos De Mexico ........... 409,300 650,255
-----------
$ 1,348,690
-----------
<PAGE>
NETHERLANDS -- 5.3%
Abn-Amro Hldgs Nv ............ 24,200 $ 439,518
Aegon Nv ............ 15,099 314,785
Asm Lithography Hldg ............ 13,800 208,656
Hagemeyer ............ 21,288 294,334
Ihc Caland Nv ............ 10,369 620,055
Ing Groep Nv ............ 32,009 821,911
Philips Elec(Kon) ............ 21,659 604,704
Royal Dutch Petrol ............ 12,078 672,749
-----------
$ 3,976,712
-----------
NORWAY -- 1.2%
Norsk Hydro As ............ 19,100 $ 911,185
-----------
SINGAPORE -- 0.8%
Flextronics Intl Ltd ............ 6,700 $ 47,771
Singapore Press Hd ............ 48,000 540,653
-----------
$ 588,424
-----------
SOUTH AFRICA -- 0.5%
Sasol ............ 35,400 $ 375,598
-----------
SPAIN -- 6.5%
Altadis Sa ............ 40,258 $ 830,957
Bco Sant Cent Hisp ............ 96,100 763,063
Cia Esp Petroleos ............ 43,400 744,080
Endesa Sa ............ 52,100 756,883
Gas Natural Sdg ............ 48,300 930,166
Grupo Dragados Sa ............ 12,050 214,805
Grupo Ferrovial Sa ............ 11,000 299,943
Telefonica Sa ............ 42,968 360,699
-----------
$ 4,900,596
-----------
SWEDEN -- 0.7%
Electrolux Ab ............ 14,000 $ 282,576
Ericsson(Lm)Tel ............ 152,600 230,792
-----------
$ 513,368
-----------
SWITZERLAND -- 7.0%
Nestle Sa ............ 5,700 $ 1,329,011
Novartis Ag ............ 34,480 1,516,355
Sgs Holding ............ 1,450 462,792
Stmicroelectronics ............ 12,488 311,411
Swiss Reinsurance ............ 9,180 897,490
Ubs Ag ............ 16,000 804,704
-----------
$ 5,321,763
-----------
TAIWAN -- 0.9%
Taiwan Semiconductor ............ 26,290 $ 341,770
United Microelectron ............ 42,800 314,580
-----------
$ 656,350
-----------
UNITED KINGDOM -- 23.9%
Alliance Unichem ............ 58,362 $ 551,544
Amvescap ............ 33,011 268,944
Anglo American ............ 41,800 695,117
Barclays ............ 166,368 1,399,804
Bhp Billiton Plc ............ 103,609 564,586
Bp ............ 206,651 1,735,579
Brit Amer Tobacco ............ 52,383 562,908
British Sky Broadc ............ 40,000 383,500
Diageo ............ 91,349 1,186,313
Glaxosmithkline ............ 48,310 1,044,168
Great Univ Stores ............ 38,936 357,573
Hsbc Hldgs ............ 122,833 1,412,641
Legal & General Gp ............ 210,803 420,130
Lloyds Tsb Group ............ 87,765 873,560
Meggitt ............ 119,723 399,575
Mitie Group ............ 138,547 275,584
Reckitt Benckiser ............ 35,988 645,639
Royal Bk Scot Grp ............ 49,055 1,390,763
Scottish Pwr Plc ............ 40,800 873,120
Shell Trnspt&Trdg ............ 115,396 870,663
Unilever Plc ............ 47,036 428,733
Vodafone Group ............ 854,310 1,171,942
Wolseley ............ 58,796 595,974
-----------
$ 18,108,360
-----------
TOTAL EQUITY INTERESTS - 94.4%
(identified cost, $74,718,553) $ 71,327,646
-----------
Reserve Funds -- 4.4%
Face Amount
American Express Corp.,
1.970%, 7/01/02 (at cost)........$3,345,000 $ 3,345,000
-----------
TOTAL INVESTMENTS - 98.8%
(identified cost, $78,063,553) $ 74,672,646
OTHER ASSETS, LESS LIABILITIES -- 1.2% 940,109
-----------
NET ASSETS -- 100% $ 75,612,755
============
* Non-income-producing security.
ADR: American Depository Receipts.
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)
-------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2002 (unaudited)
Face Interest Maturity
Amount Issuer Rate Date Value
-------------------------------------------------------------------------------
$2,650,000 U.S. Treasury Bills 1.715% 7/05/02 $ 2,643,435
750,000 U.S. Treasury Bills 1.700% 7/05/02 749,008
125,000 U.S. Treasury Bills 1.620% 7/11/02 124,718
285,000 U.S. Treasury Bills 1.650% 7/11/02 284,438
2,400,000 U.S. Treasury Bills 1.660% 7/11/02 2,395,352
1,300,000 U.S. Treasury Bills 1.640% 7/18/02 1,297,454
2,400,000 U.S. Treasury Bills 1.630% 7/18/02 2,395,436
2,500,000 U.S. Treasury Bills 1.610% 7/25/02 2,495,304
2,750,000 U.S. Treasury Bills 1.650% 8/01/02 2,742,690
2,100,000 U.S. Treasury Bills 1.670% 9/19/02 2,091,135
500,000 U.S. Treasury Bills 1.610% 10/10/02 497,629
275,000 U.S. Treasury Bills 1.590% 10/10/02 273,725
----------
Total Investments
At Amortized Cost -- 100.4% $ 17,990,326
Liabilities in Excess of Other Assets -- (0.4%) (79,369)
--------------
Net Assets -- 100.0% $ 17,910,957
==============
See notes to financial statements
<PAGE>
U.S. GOVERNMENT NEAR TERM PORTFOLIO (NTBP)
-------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2002 (unaudited)
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield Maturity
----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT BONDS
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,500,000 U.S. Treasury Notes 2.750% 10/31/03 100.561 $ 2,514,025 2.73% 2.3%
2,000,000 U.S. Treasury Notes 4.250% 11/15/03 102.515 2,050,300 4.15% 2.4%
2,500,000 U.S. Treasury Notes 4.750% 02/15/04 103.448 2,586,200 4.59% 2.6%
1,000,000 U.S. Treasury Notes 4.625% 05/15/06 103.000 1,030,000 4.49% 3.8%
AGENCIES
$ 1,160,000 Fed Farm Credits Bks 5.000% 02/03/03 101.733 $ 1,180,103 4.91% 2.1%
500,000 FHLB 5.125% 01/13/03 101.653 508,265 5.04% 2.0%
2,000,000 FHLB 4.875% 04/16/04 103.384 2,067,680 4.72% 2.9%
725,000 FHLB 5.000% 09/12/05 102.765 745,046 4.87% 4.1%
2,000,000 FHLMC 3.200% 12/24/03 100.105 2,002,100 3.20% 3.1%
500,000 FHLMC 3.550% 07/29/04 100.632 503,160 3.53% 3.6%
1,500,000 FHLMC 3.875% 06/27/05 100.550 1,508,250 3.85% 3.7%
2,000,000 FHLMC 5.250% 01/15/06 104.264 2,085,280 5.04% 4.0%
1,050,000 FHLMC 5.000% 03/13/07 101.437 1,065,089 4.93% 4.7%
2,875,000 FNMA 5.000% 02/14/03 101.810 2,927,038 4.91% 2.1%
1,000,000 FNMA 3.125% 11/15/03 101.005 1,010,050 3.09% 2.4%
595,000 FNMA 3.300% 02/25/04 100.402 597,392 3.29% (0.2%)
750,000 FNMA 3.700% 09/10/04 101.033 757,748 3.66% 3.2%
2,270,000 FNMA 3.500% 09/15/04 100.662 2,285,027 3.48% 3.2%
450,000 FNMA 4.200% 10/01/04 102.093 459,419 4.11% 3.2%
500,000 FNMA 4.250% 05/30/05 101.550 507,750 4.19% 3.7%
850,000 FNMA 6.000% 12/15/05 106.782 907,647 5.62% 3.9%
1,070,000 FNMA 5.250% 06/15/06 104.073 1,113,581 5.04% 4.1%
750,000 FNMA 4.375% 10/15/06 100.547 754,103 4.35% 4.2%
325,000 FNMA 4.500% 10/17/06 100.764 327,483 4.47% 4.3%
800,000 FNMA 5.125% 02/14/07 102.991 823,928 4.98% 4.4%
-----------
FHLMC
$ 499,052 FGFB Pool #m90724 5.500% 05/01/07 103.438 $ 516,205 5.32% 4.6%
493,192 FHLMC Gold Balloon #m90710 5.000% 03/01/07 102.593 505,980 4.87% 4.8%
Total Investments (identified cost, $32,716,660) -- 94.9% $33,338,848
-----------
Reserve Funds -- 4.1%
Face Amount
1,435,000 American Express Corp. (at cost) 1.970% 07/01/02 100.000 $ 1,435,000
-----------
TOTAL INVESTMENTS (identified cost, $34,151,660) - 99.0% $ 34,773,848
Other Assets, Less Liabilities -- 1.0% 345,459
-----------
Net Assets -- 100.0% $35,119,307
============
Average Maturity -- 2.5 Years
See notes to financial statements
</TABLE>
<PAGE>
U.S. GOVERNMENT INTERMEDIATE PORTFOLIO (USTBP)
-------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2002 (unaudited)
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield Maturity
-----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT BONDS
<S> <C> <C> <C> <C> <C> <C> <C>
$ 250,000 U.S. Treasury Bonds 11.625% 11/15/04 $119.277$ 298,193 9.75% 3.2%
700,000 U.S. Treasury Bonds 10.000% 05/15/10 117.418 821,926 8.52% 7.1%
850,000 U.S. Treasury Bonds 14.000% 11/15/11 139.757 1,187,935 10.02% 7.9%
250,000 U.S. Treasury Notes 2.750% 10/31/03 100.561 251,403 2.73% 2.3%
800,000 U.S. Treasury Notes 6.500% 08/15/05 108.906 871,248 5.97% 3.5%
200,000 U.S. Treasury Notes 3.500% 11/15/06 98.218 196,436 3.56% 3.9%
750,000 U.S. Treasury Notes 6.125% 08/15/07 108.994 817,455 5.62% 4.2%
250,000 U.S. Treasury Notes 4.750% 11/15/08 101.829 254,572 4.66% 4.4%
250,000 U.S. Treasury Notes 5.500% 05/15/09 105.796 264,490 5.20% 4.5%
750,000 U.S. Treasury Notes 4.875% 02/15/12 100.375 752,813 4.86% 4.8%
AGENCIES
$ 450,000 FHLB 3.625% 10/15/04 $100.830 $ 453,735 3.60% 3.2%
360,000 FHLMC 3.200% 12/24/03 100.105 360,378 3.20% 3.1%
250,000 FHLMC 3.875% 06/27/05 100.550 251,375 3.85% 3.7%
500,000 FHLMC 4.875% 03/15/07 102.214 511,070 4.77% 4.3%
750,000 FNMA 3.125% 11/15/03 101.005 757,537 3.09% 2.4%
850,000 FNMA 3.625% 04/15/04 101.235 860,498 3.58% 2.9%
300,000 FNMA 3.700% 09/10/04 101.033 303,099 3.66% 3.2%
450,000 FNMA 3.875% 03/15/05 100.912 454,104 3.84% 3.5%
250,000 FNMA 4.250% 05/30/05 101.550 253,875 4.19% 3.7%
450,000 FNMA 4.375% 10/15/06 100.547 452,461 4.35% 4.2%
250,000 FNMA 5.375% 11/15/11 100.098 250,245 5.37% 5.4%
FHLMC
$ 99,810 FGFB Pool #m90724 5.500% 05-01-07 $103.437 $ 103,240 5.32% 4.6%
-----------
Total Investments (identified cost, $10,336,097) - 98.4% $10,728,088
Other Assets, less Liabilities - 1.6% 179,357
-----------
Net Assets - 100.0% $10,907,445
============
Average Maturity - 4.8 Years
See notes to financial statements
</TABLE>
<PAGE>
CURRENT INCOME PORTFOLIO (CIFP)
-------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2002 (unaudited)
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield
---------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT INTERESTS - 92.6%
FNMA
-----
<S> <C> <C> <C> <C> <C> <C>
$ 988,403 FNMA Pool #535131 6.000% 03-01-29 $100.187 $ 990,251 5.99%
FHLMC
------
$ 547,216 FGLMC Pool #c27663 7.000% 06-01-29 $103.625 $ 567,053 6.76%
GNMA
-----
$ 510,158 GNMA II Pool #000723 7.500% 01-20-23 $105.532 $ 538,380 7.11%
390,720 GNMA Ii Pool #001268 8.000% 07-20-23 106.664 416,758 7.50%
206,537 GNMA II Pool #1788 7.000% 07-20-24 104.000 214,798 6.73%
209,374 GNMA II Pool #2218 7.500% 05-20-26 105.344 220,563 7.12%
363,941 GNMA II Pool #545 7.500% 12-20-22 105.532 384,074 7.11%
174,596 GNMA Pool #002855 8.500% 12-20-29 106.781 186,435 7.96%
258 GNMA Pool #003026 8.000% 01-15-04 102.965 266 7.77%
163 GNMA Pool #003331 8.000% 01-15-04 102.965 168 7.77%
492 GNMA Pool #004183 8.000% 07-15-04 104.883 516 7.63%
391 GNMA Pool #004433 9.000% 11-15-04 105.467 413 8.53%
650,266 GNMA Pool #431612 8.000% 11-15-26 107.000 695,785 7.48%
582,974 GNMA Pool #462444 6.500% 12-15-27 102.406 597,000 6.35%
161 GNMA Pool #11191 7.250% 04-15-06 106.038 171 6.84%
1,263 GNMA Pool #12526 8.000% 11-15-06 107.239 1,354 7.46%
26,899 GNMA Pool #151443 10.000% 03-15-16 112.671 30,307 8.88%
6,880 GNMA Pool #153564 10.000% 04-15-16 112.125 7,714 8.92%
24,847 GNMA Pool #1596 9.000% 04-20-21 108.344 26,920 8.31%
44,169 GNMA Pool #172558 9.500% 08-15-16 110.750 48,917 8.58%
70,984 GNMA Pool #176992 8.000% 11-15-16 108.250 76,840 7.39%
7,494 GNMA Pool #177784 8.000% 10-15-16 108.250 8,112 7.39%
12,435 GNMA Pool #180033 9.500% 09-15-16 110.750 13,772 8.58%
4,465 GNMA Pool #188060 9.500% 10-15-16 110.750 4,945 8.58%
636 GNMA Pool #190959 8.500% 02-15-17 109.187 694 7.78%
15,017 GNMA Pool #192357 8.000% 04-15-17 108.175 16,245 7.40%
84,751 GNMA Pool #194057 8.500% 04-15-17 109.187 92,537 7.78%
36,922 GNMA Pool #194287 9.500% 03-15-17 110.481 40,792 8.60%
215,165 GNMA Pool #194926 8.500% 02-15-17 109.187 234,932 7.78%
3,980 GNMA Pool #196063 8.500% 03-15-17 109.187 4,346 7.78%
36,247 GNMA Pool #203369 8.000% 12-15-16 108.250 39,237 7.39%
14,361 GNMA Pool #206740 10.000% 10-15-17 112.875 16,210 8.86%
49,920 GNMA Pool #206762 9.000% 04-15-21 109.531 54,678 8.22%
38,237 GNMA Pool #207019 8.000% 03-15-17 108.175 41,363 7.40%
5,748 GNMA Pool #208076 8.000% 04-15-17 108.175 6,218 7.40%
4,972 GNMA Pool #210520 10.500% 08-15-17 115.281 5,732 9.11%
4,764 GNMA Pool #210618 9.500% 04-15-17 110.214 5,251 8.62%
27,763 GNMA Pool #211013 9.000% 01-15-20 110.031 30,548 8.18%
18,297 GNMA Pool #211231 8.500% 05-15-17 109.187 19,978 7.78%
19,867 GNMA Pool #212601 8.500% 06-15-17 109.187 21,692 7.78%
1,417 GNMA Pool #218420 8.500% 11-15-21 108.563 1,538 7.83%
75,111 GNMA Pool #219335 8.000% 05-15-17 108.175 81,251 7.40%
124,410 GNMA Pool #220703 8.000% 05-15-17 108.175 134,581 7.40%
9,925 GNMA Pool #220917 8.500% 04-15-17 109.187 10,837 7.78%
198,594 GNMA Pool #222112 8.000% 01-15-22 107.875 214,233 7.42%
23,469 GNMA Pool #223126 10.000% 08-15-17 112.875 26,491 8.86%
26,569 GNMA Pool #223133 9.500% 07-15-17 110.750 29,425 8.58%
11,256 GNMA Pool #223348 10.000% 07-15-18 113.957 12,827 8.78%
3,881 GNMA Pool #223588 10.000% 02-15-18 112.875 4,381 8.86%
4,606 GNMA Pool #224078 10.000% 07-15-18 112.875 5,199 8.86%
629,570 GNMA Pool #2268 7.500% 08-20-26 105.344 663,214 7.12%
18,387 GNMA Pool #228308 10.000% 01-15-19 112.875 20,754 8.86%
10,405 GNMA Pool #228483 9.500% 09-15-19 111.687 11,621 8.51%
12,658 GNMA Pool #230223 9.500% 04-15-18 110.750 14,019 8.58%
15,454 GNMA Pool #245580 9.500% 07-15-18 111.375 17,212 8.53%
6,743 GNMA Pool #247473 10.000% 09-15-18 110.130 7,426 9.08%
31,169 GNMA Pool #247681 9.000% 11-15-19 110.031 34,296 8.18%
11,961 GNMA Pool #247872 10.000% 09-15-18 112.875 13,501 8.86%
15,345 GNMA Pool #250412 8.000% 03-15-18 108.175 16,599 7.40%
12,121 GNMA Pool #251241 9.500% 06-15-18 110.615 13,408 8.59%
14,989 GNMA Pool #258911 9.500% 09-15-18 111.375 16,694 8.53%
16,449 GNMA Pool #260999 9.500% 09-15-18 111.375 18,320 8.53%
16,532 GNMA Pool #263439 10.000% 02-15-19 112.875 18,660 8.86%
14,643 GNMA Pool #265267 9.500% 08-15-20 111.375 16,309 8.53%
11,469 GNMA Pool #266983 10.000% 02-15-19 112.875 12,946 8.86%
6,643 GNMA Pool #273690 9.500% 08-15-19 111.063 7,378 8.55%
7,538 GNMA Pool #274489 9.500% 12-15-19 111.687 8,419 8.51%
2,488 GNMA Pool #275456 9.500% 08-15-19 111.687 2,779 8.51%
5,346 GNMA Pool #275538 9.500% 01-15-20 111.687 5,971 8.51%
6,525 GNMA Pool #277205 9.000% 12-15-19 110.031 7,180 8.18%
50,242 GNMA Pool #285744 9.000% 05-15-20 109.406 54,968 8.23%
20,805 GNMA Pool #286556 9.000% 03-15-20 109.406 22,762 8.23%
22,705 GNMA Pool #289092 9.000% 04-15-20 109.406 24,841 8.23%
295,028 GNMA Pool #2897 8.000% 03-20-30 106.063 312,916 7.54%
5,912 GNMA Pool #290700 9.000% 08-15-20 109.406 6,468 8.23%
836,354 GNMA Pool #2909 8.000% 04-20-30 106.063 887,062 7.54%
5,241 GNMA Pool #293666 8.500% 06-15-21 108.563 5,690 7.83%
280 GNMA Pool #294209 9.000% 07-15-21 109.531 307 8.22%
4,721 GNMA Pool #297345 8.500% 08-15-20 108.718 5,133 7.82%
1,019,084 GNMA Pool #3011 7.500% 12-20-30 104.969 1,069,722 7.14%
17,953 GNMA Pool #301366 8.500% 06-15-21 108.563 19,490 7.83%
7,478 GNMA Pool #302713 9.000% 02-15-21 109.531 8,191 8.22%
4,184 GNMA Pool #302723 8.500% 05-15-21 108.563 4,542 7.83%
11,522 GNMA Pool #302781 8.500% 06-15-21 108.563 12,509 7.83%
19,224 GNMA Pool #302933 8.500% 06-15-21 108.563 20,870 7.83%
80,403 GNMA Pool #304512 8.500% 05-15-21 108.563 87,288 7.83%
126,324 GNMA Pool #305091 9.000% 07-15-21 109.531 138,364 8.22%
36,071 GNMA Pool #306693 8.500% 09-15-21 108.563 39,160 7.83%
12,758 GNMA Pool #308792 9.000% 07-15-21 109.531 13,974 8.22%
13,088 GNMA Pool #311087 8.500% 07-15-21 108.563 14,209 7.83%
5,937 GNMA Pool #314222 8.500% 04-15-22 108.312 6,430 7.85%
10,458 GNMA Pool #314581 9.500% 10-15-21 112.281 11,742 8.46%
77,100 GNMA Pool #315187 8.000% 06-15-22 107.875 83,172 7.42%
221,722 GNMA Pool #315388 8.000% 02-15-22 107.875 239,183 7.42%
18,137 GNMA Pool #315754 8.000% 01-15-22 107.875 19,565 7.42%
157,467 GNMA Pool #316240 8.000% 01-15-22 107.875 169,868 7.42%
92,185 GNMA Pool #317069 8.500% 12-15-21 108.563 100,079 7.83%
93,073 GNMA Pool #317351 8.000% 05-15-22 107.875 100,402 7.42%
26,387 GNMA Pool #317358 8.000% 05-15-22 107.875 28,465 7.42%
52,227 GNMA Pool #318776 8.000% 02-15-22 107.875 56,340 7.42%
1,428 GNMA Pool #318793 8.500% 02-15-22 108.312 1,547 7.85%
82,973 GNMA Pool #319441 8.500% 04-15-22 108.312 89,870 7.85%
50,930 GNMA Pool #321806 8.000% 05-15-22 107.875 54,941 7.42%
147,713 GNMA Pool #321807 8.000% 05-15-22 107.875 159,345 7.42%
73,741 GNMA Pool #321976 8.500% 01-15-22 108.563 80,055 7.83%
205,785 GNMA Pool #323226x 8.000% 06-15-22 107.875 221,991 7.42%
165,115 GNMA Pool #323929 8.000% 02-15-22 107.875 178,118 7.42%
99,542 GNMA Pool #325165 8.000% 06-15-22 107.875 107,381 7.42%
48,034 GNMA Pool #325651 8.000% 06-15-22 107.875 51,817 7.42%
172,201 GNMA Pool #329540 7.500% 08-15-22 106.343 183,124 7.05%
538,717 GNMA Pool #329982 7.500% 02-15-23 106.343 572,888 7.05%
46,693 GNMA Pool #331361 8.000% 11-15-22 107.875 50,370 7.42%
103,777 GNMA Pool #335746 8.000% 10-15-22 107.875 111,949 7.42%
116,662 GNMA Pool #335950 8.000% 10-15-22 107.875 125,849 7.42%
817,830 GNMA Pool #336488 7.000% 08-15-23 104.406 853,864 6.70%
803,414 GNMA Pool #348103 7.000% 06-15-23 104.406 838,812 6.70%
488,917 GNMA Pool #348213 6.500% 08-15-23 102.749 502,357 6.33%
412,741 GNMA Pool #350372 7.000% 04-15-23 104.406 430,926 6.70%
273,111 GNMA Pool #350659 7.500% 06-15-23 106.343 290,434 7.05%
720,364 GNMA Pool #350938 6.500% 08-15-23 102.749 740,167 6.33%
741,271 GNMA Pool #352001 6.500% 12-15-23 102.749 761,649 6.33%
478,702 GNMA Pool #352110 7.000% 08-15-23 104.406 499,794 6.70%
361,382 GNMA Pool #363429 7.000% 08-15-23 104.406 377,305 6.70%
531,274 GNMA Pool #367414 6.000% 11-15-23 100.500 533,930 5.97%
714,865 GNMA Pool #367806 6.500% 09-15-23 102.749 734,517 6.33%
682,042 GNMA Pool #368238 7.000% 12-15-23 104.406 712,093 6.70%
1,122,747 GNMA Pool #368502 7.000% 02-15-24 104.375 1,171,867 6.71%
1,445,656 GNMA Pool #372050 6.500% 02-15-24 102.78 1,485,846 6.32%
233,339 GNMA Pool #372379 8.000% 10-15-26 107.000 249,673 7.48%
411,083 GNMA Pool #372468 6.500% 12-15-27 102.406 420,974 6.35%
1,069,607 GNMA Pool #376218 7.500% 08-15-25 106.437 1,138,458 7.05%
486,508 GNMA Pool #376400 6.500% 02-15-24 102.749 499,882 6.33%
602,443 GNMA Pool #387189 7.000% 02-15-24 104.375 628,800 6.71%
154,266 GNMA Pool #394805 7.500% 02-15-26 106.437 164,196 7.05%
222,993 GNMA Pool #398251 7.500% 09-15-25 106.437 237,347 7.05%
403,576 GNMA Pool #405558 7.500% 01-15-26 106.437 429,555 7.05%
956,507 GNMA Pool #410215 7.500% 12-15-25 106.437 1,018,077 7.05%
1,718,502 GNMA Pool #413152 8.000% 10-15-25 107.000 1,838,798 7.48%
197,893 GNMA Pool #414736 7.500% 11-15-25 106.437 210,632 7.05%
186,035 GNMA Pool #417225 7.500% 01-15-26 106.437 198,010 7.05%
481,252 GNMA Pool #417276 7.000% 02-15-26 104.250 501,706 6.71%
1,695,897 GNMA Pool #420707 7.000% 02-15-26 104.250 1,767,973 6.71%
305,502 GNMA Pool #421829 7.500% 04-15-26 106.281 324,691 7.06%
58,685 GNMA Pool #423114 7.000% 10-15-27 104.031 61,051 6.73%
256,363 GNMA Pool #424173 7.500% 03-15-26 106.281 272,466 7.06%
321,294 GNMA Pool #427199 7.000% 12-15-27 104.031 334,245 6.73%
960,341 GNMA Pool #430279 7.000% 10-15-27 104.031 999,052 6.73%
111,102 GNMA Pool #431036 8.000% 07-15-26 107.000 118,879 7.48%
772,230 GNMA Pool #434505 7.500% 08-15-29 105.469 814,464 7.11%
515,681 GNMA Pool #436214 6.500% 02-15-13 104.655 539,686 6.21%
422,374 GNMA Pool #436723 7.500% 11-15-26 106.281 448,904 7.06%
1,462,312 GNMA Pool #436777 7.000% 04-15-27 104.031 1,521,258 6.73%
931,347 GNMA Pool #440166 7.000% 02-15-27 104.250 970,929 6.71%
540,779 GNMA Pool #442063 7.000% 10-15-26 104.250 563,762 6.71%
213,615 GNMA Pool #442190 8.000% 12-15-26 107.000 228,569 7.48%
221,527 GNMA Pool #442193 7.500% 12-15-26 106.281 235,442 7.06%
596,188 GNMA Pool #442996 6.000% 06-15-13 102.781 612,768 5.84%
297,114 GNMA Pool #446943 7.000% 04-15-27 104.031 309,091 6.73%
1,158,184 GNMA Pool #448490 7.500% 03-15-27 106.094 1,228,764 7.07%
904,970 GNMA Pool #449176 6.500% 07-15-28 102.375 926,463 6.35%
1,107,146 GNMA Pool #457100 6.500% 11-15-28 102.375 1,133,441 6.35%
716,324 GNMA Pool #458712 7.000% 11-15-27 104.031 745,199 6.73%
1,530,387 GNMA Pool #458762 6.500% 01-15-28 102.406 1,567,208 6.35%
313,097 GNMA Pool #460698 7.000% 10-15-27 104.031 325,718 6.73%
917,827 GNMA Pool #460726 6.500% 12-15-27 102.406 939,910 6.35%
734,303 GNMA Pool #462623 6.500% 03-15-28 102.375 751,743 6.35%
637,594 GNMA Pool #468173 7.000% 08-15-28 103.937 662,696 6.73%
562,338 GNMA Pool #469226 6.500% 03-15-28 102.375 575,694 6.35%
1,351,878 GNMA Pool #469615 6.500% 10-15-28 102.375 1,383,986 6.35%
1,339,848 GNMA Pool #472028 6.500% 05-15-28 102.375 1,371,669 6.35%
992,771 GNMA Pool #480030 6.500% 06-15-28 102.375 1,016,349 6.35%
1,384,463 GNMA Pool #484195 6.500% 08-15-28 102.375 1,417,344 6.35%
2,208,062 GNMA Pool #486482 6.500% 09-15-28 102.375 2,260,504 6.35%
510,632 GNMA Pool #510083 7.000% 07-15-29 103.812 530,098 6.74%
1,967,389 GNMA Pool #523002 6.500% 02-15-32 102.000 2,006,737 6.37%
1,203,005 GNMA Pool #538314 7.000% 02-15-32 103.781 1,248,491 6.74%
953 GNMA Pool #5466 8.500% 03-15-05 105.212 1,003 8.08%
1,198,878 GNMA Pool #547605 6.500% 01-15-31 102.000 1,222,856 6.37%
1,241,843 GNMA Pool #552393 6.500% 02-15-32 102.000 1,266,681 6.37%
960,162 GNMA Pool #554203 7.000% 12-15-31 103.781 996,466 6.74%
125 GNMA Pool #5561 8.500% 04-15-05 103.162 129 8.24%
408 GNMA Pool #5687 7.250% 02-15-05 104.536 427 6.94%
1,497,142 GNMA Pool #570141 6.500% 12-15-31 102.000 1,527,085 6.37%
588 GNMA Pool #5910 7.250% 02-15-05 104.536 615 6.94%
4,052 GNMA Pool #7003 8.000% 07-15-05 106.235 4,305 7.53%
249 GNMA Pool #7319 6.500% 10-15-04 101.517 253 6.40%
718,917 GNMA Pool #780429 7.500% 09-15-26 106.281 764,072 7.06%
395,186 GNMA Pool #780518 7.000% 06-15-26 104.250 411,981 6.71%
1,521 GNMA Pool #9106 8.250% 05-15-06 107.505 1,635 7.67%
1,996 GNMA Pool #9889 7.250% 02-15-06 105.692 2,110 6.86%
2,997,167 GNSF Pool #587080 6.500% 05-15-32 102.000 3,057,111 6.37%
-----------
Total Government Interests (identified cost, $67,270,981) - 92.6% $ 69,604,013
-----------
Reserve Funds -- 6.7%
Face Amount
3,740,000 American Express Corp. (at cost) 1.970% 07/01/02 100.000 $ 3,740,000 1.97%
1,260,000 GE Cap Corp. (at cost) 1.870% 07/01/02 100.000 $ 1,260,000 1.87%
-----------
Total Commercial Paper $ 5,000,000
-----------
TOTAL INVESTMENTS (identified cost, $72,270,981) - 99.3% $ 74,604,013
Other Assets, less Liabilities - 0.7% 539,729
-----------
Net Assets - 100.0% $ 75,143,742
============
See notes to financial statements
</TABLE>
<PAGE>
</TEXT>
</DOCUMENT>