-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IWKT0+5xsVdedgQOVLNDmjoRFZ9BsXK6oxggOM74+MhDtDdU45/Va7228AWzeJKW OFeJ/AyNd/z7oG/Cvz/a4w== 0000715165-03-000020.txt : 20030827 0000715165-03-000020.hdr.sgml : 20030827 20030827150104 ACCESSION NUMBER: 0000715165-03-000020 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030827 EFFECTIVENESS DATE: 20030827 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WRIGHT MANAGED EQUITY TRUST CENTRAL INDEX KEY: 0000703499 IRS NUMBER: 046481187 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-03489 FILM NUMBER: 03868406 BUSINESS ADDRESS: STREET 1: 255 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 617-482-8260 MAIL ADDRESS: STREET 1: 255 STATE STREET STREET 2: 7TH FLOOR CITY: BOSTON STATE: MA ZIP: 02109 FORMER COMPANY: FORMER CONFORMED NAME: EQUITY FUND FOR BANK TRUST DEPARTMENTS EQBT FUND DATE OF NAME CHANGE: 19880218 N-CSR 1 eqncsr-0603.txt JUNE 30,2003 FINANCIALS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-3489 The Wright Managed Equity Trust ----------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) December 31 ------------------------ Date of Fiscal Year End June 30, 2003 ------------------------ Date of Reporting Period - ------------------------------------------------------------------------------- Item 1. REPORTS TO STOCKHOLDERS THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS SEMI-ANNUAL REPORT JUNE 30,2003 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 o Wright Total Return Bond Fund o Wright Current Income Fund 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. 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 investment grade 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 Approved Lists. THREE EQUITY FUNDS WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC) 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) seeks total return consisting of price appreciation plus income by investing in a broadly diversified portfolio of equities of well-established, non-U.S. companies meeting strict quality standards. The portfolio may buy common stocks traded on the securities exchange of the country in which the company is based or it may purchase American Depositary Receipts (ADR's) traded in the United States. The portfolio is denominated in U.S. dollars and investors should understand that fluctuations in foreign exchange rates may impact the value of their investment. A MONEY MARKET FUND WRIGHT U.S. TREASURY MONEY MARKET FUND (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) seeks a high total return with an emphasis on income by investing in obligations of the U.S. Government and U.S. Government Agencies maintaining an average maturity 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. 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 Portfolio of Investments..................10 Statement of Assets & Liabilities.........13 Statement of Operations...................13 Statement of Changes in Net Assets........14 Financial Highlights......................15 WRIGHT MAJOR BLUE CHIP EQUITIES FUND Portfolio of Investments..................16 Statement of Assets & Liabilities.........19 Statement of Operations...................19 Statement of Changes in Net Assets........20 Financial Highlights......................21 WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND Portfolio of Investments..................22 Statement of Assets & Liabilities.........24 Statement of Operations...................24 Statement of Changes in Net Assets........25 Financial Highlights......................26 NOTES TO FINANCIAL STATEMENTS...............27 THE WRIGHT MANAGED INCOME TRUST WRIGHT U.S. TREASURY MONEY MARKET FUND Portfolio of Investments..................32 Statement of Assets & Liabilities.........33 Statement of Operations...................33 Statement of Changes in Net Assets........34 Financial Highlights......................35 WRIGHT U.S. GOVERNMENT NEAR TERM FUND Portfolio of Investments..................36 Statement of Assets & Liabilities.........37 Statement of Operations...................37 Statement of Changes in Net Assets........38 Financial Highlights......................39 WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND Portfolio of Investments..................40 Statement of Assets & Liabilities.........41 Statement of Operations...................41 Statement of Changes in Net Assets........42 Financial Highlights......................43 WRIGHT TOTAL RETURN BOND FUND Portfolio of Investments..................44 Statement of Assets & Liabilities.........47 Statement of Operations...................47 Statement of Changes in Net Assets........48 Financial Highlights......................49 WRIGHT CURRENT INCOME FUND Portfolio of Investments..................50 Statement of Assets & Liabilities.........54 Statement of Operations...................54 Statement of Changes in Net Assets........55 Financial Highlights......................56 NOTES TO FINANCIAL STATEMENTS...............57 LETTER TO SHAREHOLDERS - ------------------------------------------------------------------------------ July 2003 Dear Shareholders: After making a second (or third) bottom in early March, the U.S. stock market rebounded into its best quarterly showing since 1998 during the second quarter of 2003, with the S&P 500 ending June up 14.9% for the quarter and 10.8% for the half. While we cannot say definitively that the great bear market of 2000-03 is finally over, it is beginning to look as if investors have turned their focus to the better economic growth and higher earnings forecast for the second half and in 2004. Bond performance, while positive, was a good deal tamer, as the Lehman Aggregate had a 3.9% return for the first half. After two quarters of laggard performance, the S&P mid-caps (17%) and S&P small-caps (20%) outperformed the S&P 500 big-cap benchmark in the second quarter of 2003; for the entire first half, mid-caps and small-caps had a slight edge on the S&P 500. Partly as a result of the strength of the euro - which appreciated by more than 5% relative to the dollar in Q2 - European markets led the other regions of the world with an average return of 22% in dollars, followed by non-Japan Asia (15%), and Japan (12%). For the half, non-Japan Asian markets were strongest, followed by the U.S., Europe, and Japan. The better tone in the markets since March has been the result of the successful prosecution of the war with Iraq, passage of $350 billion in tax cuts, signs of some stirring in the economic recovery and, late in June, another 25 basis-point interest rate reduction from the Federal Reserve. First-quarter GDP growth came in at a 1.4% annual rate, matching the fourth quarter's sluggish rate, and Q2 looks only modestly better - maybe 2.5% thanks to some increase in the consumer sector. The tax cuts of 2003 should provide a timely boost to disposable personal incomes, which have recently slowed to a 2% real growth rate from twice that level 12 months ago. The question that won't go away is: can consumers sustain the economy's momentum until growth picks up in business investment, which is still relatively soft following the investment bubble of the late 1990s. To date, durable goods order rates suggest only slight improvement in business spending. Nevertheless, consumer attitudes are quite a bit more positive than they were prior to the beginning of the war in Iraq, if not yet back to year-ago levels. Along with this improved consumer sentiment, the stock market's bounce off last year's bottom, abiding strength in residential real estate, low interest rates and tax reduction all support our view that the U.S. economy is poised for more respectable economic growth. In addition, weekly unemployment claims have stabilized, energy prices have come off their highs, and the lower dollar points to better export growth. Worries in the markets about deflation - the steady erosion of product prices (a la Japan) that threatens profits and jobs - receded as the second quarter ended, although the Federal Reserve still rates deflation a greater risk than renewed inflation. In the bond market, yields on 10-year Treasury bonds fell roughly 30 basis points during the second quarter, hitting 45-year lows in mid-June; and yields on corporate bonds fell even more, contributing to Q2 returns of close to 5%, nearly twice what U.S. Treasury bonds returned. The narrowing of credit spreads may be the best evidence we have that corporate profits are on the mend; higher stock prices and, over the final three weeks of the first half, rising Treasury bond yields lend support to the prospect of gathering strength in the economy. True, the expansion still looks like it will be on the moderate side, but there is very little risk of the Fed moving to slow things down any time soon. While better markets and improving economic conditions may be in only their early stages, one must guard against expecting that the new cycle will progress along the lines of the durable cycles of the 1980s and 1990s. On balance, though, the investment environment ahead looks reasonably positive for stocks, if not up to the double-digit percentage returns typical over the past two decades. Bond market prospects are more limited, although returns on investment-grade corporate bonds should stay ahead of inflation over the coming five years. Sincerely, /s/ Peter M. Donovan ------------------- Peter M. Donovan President MANAGEMENT DISCUSSION - ------------------------------------------------------------------------------- EQUITY FUNDS After stocks moved lower in the first quarter of 2003, the second quarter was a good one for stocks, with the S&P 500 posting its best performance since the fourth quarter of 1998. Early in the year, investors were focused on the uncertainties posed by the pending war with Iraq. The initial trigger for the rally that began in mid-March was the expectation that the ouster of Saddam Hussein's regime in Iraq would proceed swiftly. The uptrend persisted through the second quarter, as investors began to anticipate a pickup in the pace of economic recovery. The Bush tax cut, which included a tax cut on dividends, also helped stocks. Equity investors were able to shrug off the threat of deflation hinted at by the Federal Reserve about midway through the second quarter. The S&P 500 rose nearly 11% in the first half of 2003. At mid-year, the benchmark stock index was 25% above last October's low, with virtually all of the gain achieved since mid-March. The Dow didn't do quite as well as the S&P 500, rising about 8% for the six months. The Nasdaq Composite jumped 22% in the first two quarters of 2003 and at midyear was up 46% from its low - although still down 67% from its March 2000 high. During the recent rally, the stock market's gains were broad based, with equity investors rediscovering a taste for riskier stocks. For example, in the second quarter, smaller was generally better, with the S&P MidCap 400 (+17%), S&P SmallCap 600 (+20%) and the Russell 2000 (+23%) all outperforming the S&P 500 large-cap benchmark. In a pattern reminiscent of the "rubbish rally" of the fourth quarter of 2002, investors preferred the lower-priced, lower-quality stocks within the S&P 500 in Q2. Stocks in the bottom half of the S&P 500 by price, market cap, and Wright Quality Rating outperformed those in the top half. In dollar terms, foreign stocks did a little better on average than U.S. stocks in the second quarter, but for the first half of 2003, the MSCI World ex U.S. index rose 8% in price, lagging the S&P 500's 11%. Despite the prospects for modestly better economic growth in the months ahead, a pause in the stock market's climb, or even some giveback, wouldn't be too surprising. With the market rising so far so fast, one has to be a little concerned that stock prices have gotten ahead of the fundamentals. In fact, stocks have been treading water in the early part of the third quarter. The next upleg in the stock market may take some persistently positive economic news to get firmly established. Even so, commitments made to high-quality equities at the present time should prove to be rewarding over the next 12 to 18 months. 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 Total Return 6 Mos Year Year Year Year Year Year Year Year Year Year Year Year - ---------------------------------------------------------------------------------------------------------------------------------- Wright Selected Blue Chip Fund (WSBC) 8.9% -17.0%-10.2% 10.8% 5.8% 0.1% 32.7% 18.6% 30.3% -3.5% 2.1% 4.7% 36.0% Wright Major Blue Chip Fund (WMBC) 9.1% -24.5%-16.9% -12.5% 24.0% 20.4% 33.9% 17.6% 29.0% -0.7% 1.0% 8.0% 38.9% Wright International Blue Chip Fund (WIBC) 10.4% -14.5%-24.2% -17.6% 34.3% 6.1% 1.5% 20.7% 13.6% -1.6% 28.2% -3.9% 17.2%
WRIGHT SELECTED BLUE CHIP EQUITIES FUND The Wright Selected Blue Chip Fund (WSBC) gained 8.9% during the first half of the year, as compared to a 12.4% return for its benchmark, the S&P MidCap 400. Mid cap stocks rose more than large cap stocks during the first half of the year as a strong second quarter for mid- and small-cap stocks led the equity market rebound. The breadth of the market's rise during the first half of the year is reflected in the fact that all ten sectors of the S&P MidCap 400 had a positive return, led by Healthcare (+25%), Telecomm Services (+19%) and Technology (+17%). The WSBC Fund earned positive relative performance from Financials, as a slight overweight and positive stock selection in diversified financials contributed to relative performance. The Fund also benefited from better stock selection in Utilities and Telecomm Services. The WSBC Fund was hurt most by its underperformance in Consumer Discretionary and Information Technology stocks, which rose but did not keep up with the benchmark. Most of the Fund's underperformance came during the second quarter compared to the S&P MidCap 400 and was largely due to investor preference for small, low-priced and low-quality stocks. The WSBC Fund did not hold some of the best-performing companies in the benchmark (such as Millennium Pharmaceuticals, +100%, and Powerwave Technology, +81%) because of their poor fundamentals. The fund's performance was helped by the strong performance of Sandisk (+141%) and E*Trade (+102). While quality stocks may lag for short periods, in the long run they provide the best investment returns. The WSBC Fund overall has mid-cap stocks with stronger balance sheets than the S&P MidCap benchmark average. Historical and projected earnings growth rates are also better. The superior growth prospects of the WSBC Fund's holdings are currently valued at a lower P/E multiple than the S&P MidCap 400's. WRIGHT MAJOR BLUE CHIP EQUITIES FUND The Wright Major Blue Chip Fund (WMBC) is managed as a blend of the mostly large-cap growth and value stocks in the S&P 500, which is its primary benchmark. After outperforming the S&P 500 in the first quarter, the WMBC returned 12.1% in the second quarter, a solid return though somewhat behind the 15.4% for the S&P 500 and the 14.7% for an average of 194 large-cap blend funds in the Morningstar database. In the first half of 2003, the WMBC Fund returned 9.1%, compared to 11.8% for the S&P 500 and 10.8% for the Morningstar benchmark. The Fund's best-performing sectors for the first six months of the year were Financial (14.2%), Information Technology (13.6%), and Healthcare (11.1%). The worst-performing sectors for the same period were Materials (-7.3%), Consumer Staples (-1.6%), and Telecom Services (5.8%). The WMBC Fund's make-up is tilted toward the larger, higher-quality issues in the S&P 500, and this worked against it in the second quarter. Examples of the type of high-quality issues held in the Fund that underperformed the benchmark were Johnson & Johnson (-10.3%) and 3M (-0.3%). Both stocks did well in Q1 returning 8.2% and 6.0%, respectively, while the S&P declined 3.2%. On the other hand, in Q2 Avaya and Allegheny Technologies, which the Fund does not hold and are not expected to be profitable this year, returned 217% and 130%, respectively. The Fund did benefit from holding some of the better-performing energy stocks in the April-June period. Also among the Fund's positive contributors in the second quarter were Best Buy (+63%), AOL Time Warner (+48%), Citigroup (+25%) and Intel (+28.0%). In June, investors seemed to shift more toward the quality sector of the market, and that trend appeared to be holding in early July. The Fund's positioning continues to reflect the philosophy that quality securities provide better investment returns over the long run. At June 30, the holdings in the WBC Fund were on average more profitable and faster growing than those in the S&P 500 and also had stronger balance sheets. Forecast earnings growth for the Fund holdings was better, while the forward P/E was about the same. WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND In a change from the first quarter, international stock markets did better than the U.S. market in Q2. Solid local currency returns were augmented by the depreciation of the dollar. The Wright International Blue Chip Fund (WIBC) is ahead of the benchmarks for the first half of 2003, returning 10.4% compared with 10.3% for the MSCI World excluding U.S. index and 8.4% for the Morningstar group. At the beginning of the year we felt that valuations were quite attractive in Europe, the European Central Banks would need to provide monetary stimulation, oil prices would decline and not plunge from over $30 a barrel to around $20-$25 and lastly that the Euro remained undervalued. Against this backdrop, WIBC was overweighted in the Eurozone, overweighted in the Euro and overweighted in Energy and Banks. This strategy paid off in the first six months with banks, insurance and energy groups being the top performing industry groups in the Fund. WIBC returns were positively affected by its holdings in Barclays, Bank of Nova Scotia, Cepsa, E.ON and Endesa. On the other hand the Fund's return was detracted by its holdings in Sony, which had disappointing results due to soft sales in U.S. and the weaker U.S. dollar. In terms of country contribution the Fund was helped by its exposure in Eurozone, United Kingdom and Hong Kong. The rally in Japan detracted from performance as the Fund was underweighted in Japan and also because the Japanese market returns were driven partly by poor-quality, financially troubled banks and financial institutions. We remain cautiously optimistic on the prospects in Japan. Going forward the Fund will continue with its focus on high-quality issues and may add selectively to its Japanese exposure. FIXED-INCOME FUNDS After a volatile first quarter, bond prices rallied in the second in the wake of the FOMC's May 6 meeting. Although the Fed left rates unchanged in May, it noted that there was a risk, which it described as small, that the economy might undergo a period of deflation, or something close to it, which also implies economic stagnation. The Fed appeared to be making the point that it would do whatever was needed to keep deflation at bay. Bond investors assumed that this would include buying long Treasury securities to reduce long-term interest rates if it ran out of ammunition at the short end of the yield curve. (This assumption has since come into question.) The 10-year Treasury yield began the year at about 3.8%, got close to 4.2% in the first quarter, then moved to as low as 3.1% in June before bonds gave back some of their gains late in the quarter. The Lehman U.S. aggregate fixed-income index had a return of 3.9% in first half of 2003. Corporates led the fixed-income market with a 7.7% return. BBB-rated issues topped the investment-grade corporate sector, returning more than 10%. Treasury bonds returned 3.7%, with longer maturities doing better than shorter. Returns on government agency bonds averaged 3.4% for the six months. With heavy prepayments (the result of refinancing prompted by low interest rates) dimming their appeal, mortgage-backed issues lagged with a return of less than 2.0% in the first half of 2003. Bond market prospects appear to be limited in the near term. In the past few weeks, bonds have given up some of their recent gains in response to signs of improving economic growth and higher federal budget deficits. Even though the risk of significantly higher inflation is very small and we expect the Fed to keep interest rates low for some time, some further rise in bond yields is likely going forward. We continue to look for spread products to add return to fixed-income portfolios. 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 Total Return 6 Mos. Year Year Year Year Year Year Year Year Year Year Year Year - ------------------------------------------------------------------------------------------------------------------------------- Wright U.S. Treasury Money Market Fund (WTMM) 0.4% 1.6% 3.7% 5.4% 4.3% 4.7% 4.8% 4.9% 5.3% 3.6% 2.5% 3.3% n.a. Wright U.S. Gov't. Near-Term Bond Fund (WNTB) 1.0% 5.4% 6.8% 6.9% 1.9% 6.0% 5.9% 3.9% 11.9% -3.1% 8.0% 6.3% 13.1% Wright U.S. Gov't. Intermediate Bond Fund (WUSGI) 2.4% 8.1% 5.4% 12.6% -4.0% 10.0% 9.1% -1.2% 28.2% -8.6% 15.9% 7.1% 17.6% Wright Total Return Bond Fund (WTRB) 3.9% 9.0% 5.0% 10.6% -3.9% 9.6% 9.3% 0.9% 22.0% -6.6% 11.0% 7.1% 15.4% Wright Current Income Fund (WCIF) 1.1% 7.7% 7.2% 10.3% 0.5% 6.5% 8.6% 4.4% 17.5% -3.3% 6.6% 6.7% 15.3%
WRIGHT U.S. TREASURY MONEY MARKET FUND The Wright U.S. Treasury Money Market Fund (WTMM) invests primarily in U.S. government issues that are backed by the full faith and credit of the U.S. government (U.S. Treasury securities). During the first half of 2003, yields on 90-day Treasury bills dipped under 1.0%. The Federal Reserve held its target fed funds rate at 1.25%, until late June, when it cut the rate to 1.0%, the lowest since the 1950s. WTMM returned 0.4% for the first six months of 2003, slightly less than the 0.6% return on 90-day T-bills but ahead of the 0.3% return reported for the average Treasury money market fund. In our view, if the economic environment does improve before year-end as we expect, short-term rates could begin to move higher as investors anticipate Fed tightening. WRIGHT U.S. GOVERNMENT NEAR TERM FUND The Wright U.S. Government Near-Term Fund (WNTB) is positioned to offer a better return than money market funds with less sensitivity to changes in interest rates than longer maturity funds. The fund invests primarily in U.S. government issues and maintains an average maturity of between one and three years. WNTB returned 1.0% over the first two quarters of 2003, compared to 1.4% for both the Lehman and Morningstar benchmarks. However, WNTB outperformed the average money market fund's 0.3% for the first six months. The fund also offered an indicated annual yield of 2.9% at the end of June. After reaching a high of 1.86% early in the year, the yield on the two-year Treasury got as low as 1.08% before finishing the second quarter at 1.30%. The Fund's duration of 1.6 years at the end of the second quarter was slightly shorter than the Lehman 1-3 year government index's duration of 1.7 years. The shorter duration stance hampered the Fund's performance a bit, but WIS continues to lean toward short duration in anticipation of rising interest rates in the future. At midyear, WNTB was invested 21% in U.S. Treasury securities, 69% in Government Agency issues, and 10% in mortgage-backed issues. Low Treasury yields favor the continued use of agency and mortgage-backed issues. WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND The Wright U.S. Government Intermediate Fund (WUSGI) is positioned as an intermediate maturity fund with little credit risk. The fund invests primarily in U.S. government issues and maintains an average maturity of between two and six years. For the first half of 2003, WUSGI returned 2.4%, compared to 2.6% for the Lehman U.S. government intermediate bond index and a 2.4% average return for 115 intermediate government bond funds in the Morningstar database. The WUSGI Fund is now more than half invested in government agency issues and also has about a 10% allocation in mortgage-backed issues. The Fund's overweighting in agency bonds helped the performance relative to the benchmark, since intermediate agency issues outperformed Treasuries of similar maturity in the first half of 2003. However, the return on the MBS allocation lagged. Also having a negative impact was the Fund's shorter duration than the Lehman benchmark; the Fund's duration was 2.9 years at June 30, compared to 3.2 for the Lehman government intermediate index. With bond yields expected to rise in the second half of 2003, the Fund is maintaining a bias toward short duration and an overweight position in spread products in order to improve returns. WRIGHT TOTAL RETURN BOND FUND In the first six months of 2003, the Wright Total Return Bond Fund (WTRB), a diversified bond fund, returned 3.9%, matching the return of the Lehman U.S. Aggregate Bond Index but slightly behind the 4.1% return for an average of 139 total return bond funds in the Morningstar database. The fund's returns were enhanced by its overweight position in corporates, which was the best-performing sector in the first half of 2003, and an underweight positioning in mortgage-backed issues, which lagged the rest of the fixed-income market. At June 30, 2003, the Fund was invested 32% in Corporates; 24% in Treasuries; 16% in agencies; 23% in mortgage-backed issues; 4% in asset-backed issues; and less than 1% in cash. In anticipation of an improving economy and higher interest rates ahead, the Fund has maintained its tilt towards a shorter maturity and duration target relative to its benchmark (which is helping in the first few weeks of Q3). The Fund also looks to enhance its return by staying overweight in corporate issues. A shift back to mortgages from Treasuries is possible if mortgage spreads become more attractive. WRIGHT CURRENT INCOME FUND The Wright Current Income Fund (WCIF) is about 85% invested in GNMA issues (mortgage-based securities, known as Ginnie Maes, with explicit backing from the Federal government). Returns on Ginnie Maes lagged the Lehman aggregate return in the first half of 2003 as low mortgage rates kept prepayment risk high and reduced these securities' appeal. For the first six months of 2003, WCIF returned 1.1%, slightly behind the 1.4% return for the Lehman GNMA index and the 1.6% return for the average of 65 Morningstar government mortgage funds. The WCIF Fund is actively managed to maximize income and minimize principal fluctuation. To reduce the impact of mortgage prepayments, in the first half of 2003 the WCIF Fund continued to emphasize lower-coupon issues. With the economy expected to improve, WIS anticipates that interest rates will rise before the end of 2003. As this happens, the Fund will look for opportunities to shift to higher-coupon issues, which do better in a rising interest rate environment. At the end of the second quarter, the WCIF Fund had an indicated annual yield of 4.8% with virtually no credit risk, making it attractive for income-oriented investors. 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 12/31/93 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% 12/31/02 8,341.63 3.82% 06/30/03 8,985.44 3.52% - -------------------------------------------------------------------------------- WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC) - ------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited) Shares Value ------- ------- EQUITY INTERESTS - 99.6% AUTOMOBILES & COMPONENTS - 3.1% ArvinMeritor, Inc................... 9,065 $ 182,932 BorgWarner, Inc..................... 4,550 293,020 Carlisle Cos., Inc.................. 4,065 171,380 Lear Corp*.......................... 8,185 376,674 ----------- $ 1,024,006 ----------- BANKS - 10.4% Bank of Hawaii Corp................. 10,715 $ 355,202 City National Corp.................. 3,295 146,825 Compass Bancshares, Inc............. 9,970 348,252 First Virginia Banks, Inc........... 4,620 199,214 Greenpoint Financial Corp........... 9,275 472,468 M&T Bank Corp....................... 6,970 587,013 New York Community Bankcorp......... 16,510 480,276 Roslyn Bancorp Inc.................. 8,065 173,317 Sovereign Bancorp Inc............... 23,570 368,870 Webster Financial Corp.............. 7,150 270,270 ----------- $ 3,401,707 ----------- CAPITAL GOODS - 3.3% Ametek Inc.......................... 3,340 $ 122,411 Donaldson Co., Inc.................. 4,255 189,135 Jacobs Engineering Group, Inc.*..... 7,790 328,348 Pentair, Inc........................ 6,030 235,532 Vishay Intertechnology, Inc*........ 16,370 216,084 ----------- $ 1,091,510 ----------- CHEMICALS - 1.6% Albemarle Corp...................... 5,960 $ 166,701 Cytec Industries, Inc.*............. 6,610 223,418 Lubrizol Corp....................... 4,025 124,735 ----------- $ 514,854 ----------- COMMERCIAL SERVICES & SUPPLIES - 4.3% Bandag, Inc......................... 3,230 $ 120,382 Ceridian Corp.*..................... 9,340 158,500 Choicepoint, Inc*................... 6,440 222,309 Corinthian Colleges, Inc.*.......... 4,795 232,893 Manpower, Inc....................... 6,660 247,019 Republic Services, Inc. - Class A*.. 18,240 413,501 ----------- $ 1,394,604 ----------- COMPUTERS & PERIPHERALS - 4.8% CDW Corp.*.......................... 4,830 $ 221,214 CSG Systems International, Inc.*.... 11,890 168,006 Imation Corp........................ 6,585 249,045 Sandisk Corp.*...................... 10,165 410,158 Storage Technology Corp.*........... 12,420 319,691 Tech Data Corp.*.................... 7,705 205,801 ----------- $ 1,573,915 ----------- CONSUMER DURABLES & APPAREL - 1.7% Coach, Inc.*........................ 3,765 $ 187,271 Mohawk Industries, Inc.*............ 6,870 381,491 ----------- $ 568,762 ----------- DIVERSIFIED FINANCIALS - 3.9% E*Trade Group, Inc.*................ 45,260 $ 384,710 Legg Mason, Inc..................... 8,610 559,219 New Plan Excel Realty Trust REIT.... 13,665 291,748 ----------- $ 1,235,677 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.0% Diebold, Inc........................ 4,655 $ 201,329 Energizer Holdings, Inc.*........... 14,205 446,037 ----------- $ 647,366 ----------- ENERGY - 7.8% Ensco International, Inc............ 6,770 $ 182,113 Equitable Resources, Inc............ 7,575 308,605 FMC Technologies, Inc.*............. 12,190 256,599 Forrest Oil Corp.*.................. 8,900 223,568 Peabody Energy Corp................. 10,145 340,771 Pogo Producing Co................... 11,230 480,082 Smith International, Inc.*.......... 7,120 261,589 Valero Energy Corp.................. 4,515 164,030 XTO Energy, Inc..................... 16,593 333,685 ----------- $ 2,551,042 ----------- FOOD, BEVERAGE & TOBACCO - 3.9% Constellation Brands, Inc.-Class A*. 10,485 $ 329,229 Dean Foods Co.*..................... 12,492 393,498 Pepsiamericas, Inc.................. 7,475 93,886 Sensient Technologies Corp.......... 4,180 96,098 Smucker Co. (J.M.) ................. 5,090 203,040 Universal Corp...................... 3,835 162,220 ----------- $ 1,277,971 ----------- HEALTH CARE EQUIPMENT & SERVICES - 6.4% AdvancePCS*......................... 7,705 $ 294,562 Apria Healthcare Group, Inc.*....... 9,835 244,695 Coventry Health Care, Inc.*......... 4,795 221,337 Dentsply International, Inc......... 5,725 234,152 Edwards Lifesciences Corp.*......... 8,280 266,119 Health Net, Inc.*................... 13,330 439,223 Steris Corp.*....................... 7,185 165,902 Universal Health Services, Inc. - Class B*................... 5,260 208,401 ----------- $ 2,074,391 ----------- HOME CONSTRUCTION, FURNISHINGS & APPLIANCES - 2.5% D.R. Horton, Inc.................... 7,835 $ 220,163 Hon Industries, Inc................. 6,235 190,168 Lennar Corp......................... 5,160 368,940 ----------- $ 779,271 ----------- HOTELS, RESTAURANTS & LEISURE - 3.5% Applebee's International, Inc....... 5,300 $ 166,579 Brinker International, Inc.*........ 9,250 333,185 Gtech Holdings Corp.*............... 8,230 309,860 Mandalay Resort Group............... 4,265 135,840 Outback Steakhouse, Inc............. 4,905 191,295 ----------- $ 1,136,759 ----------- INSURANCE - 6.2% American Financial Group, Inc....... 9,635 $ 219,678 Everest Re Group, Ltd............... 5,275 403,538 Fidelity National Financial, Inc.... 7,456 229,347 First American Corp................. 6,080 160,208 HCC Insurance Holdings, Inc......... 5,090 150,511 Leucadia National Corp.............. 9,325 346,144 Protective Life Corp................ 7,880 210,790 Radian Group, Inc................... 4,745 173,904 Stancorp Financial Group............ 2,505 130,811 ----------- $ 2,024,931 ----------- MATERIALS - 2.2% Airgas, Inc......................... 12,410 $ 207,868 Precision Castparts Corp............ 9,240 287,364 Valspar Corp........................ 5,215 220,177 ----------- $ 715,409 ----------- MEDIA - 2.0% Belo Corp. - Class A................ 14,770 $ 330,257 Westwood One, Inc.*................. 9,585 325,219 ----------- $ 655,476 ----------- PHARMACEUTICALS & BIOTECHNOLOGY - 7.0% Barr Laboratories, Inc.*............ 4,987 $ 326,649 Gilead Sciences, Inc.*.............. 4,700 261,226 Idec Pharmaceuticals Corp.*......... 6,975 237,150 Mylan Laboratories, Inc............. 14,930 519,116 Omnicare, Inc....................... 10,145 342,800 Perrigo Company..................... 11,295 176,654 Pharmaceutical Resources, Inc.*..... 3,440 167,390 SICOR, Inc.*........................ 11,925 242,555 ----------- $ 2,273,540 ----------- RETAILING - 5.4% Abercrombie & Fitch Co. - Class A*.. 9,330 $ 265,065 Blyth, Inc.......................... 6,350 172,720 Borders Group, Inc.*................ 7,155 126,000 Chico's FAS, Inc.*.................. 5,560 117,038 Claire's Stores, Inc................ 8,060 204,402 Neiman Marcus Group, Inc. - Class A* 6,920 253,272 Pier 1 Imports, Inc................. 8,380 170,952 Ross Stores, Inc.................... 7,130 304,736 Saks, Inc.*......................... 15,230 147,731 ----------- $ 1,761,916 ----------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - 1.9% International Rectifier Corp.*...... 6,725 $ 180,365 Lam Research Corp.*................. 11,815 215,151 Microchip Technology, Inc........... 5,380 132,509 Semtech Corp.*...................... 7,060 100,534 ----------- $ 628,559 ----------- SOFTWARE & SERVICES - 5.4% Affiliated Computer Services, Inc.*. 6,290 $ 287,642 Checkfree Corp.*.................... 5,815 161,890 Fair Isaac, Inc..................... 2,485 127,853 Internet Security Systems*.......... 5,450 78,971 Macromedia, Inc.*................... 10,520 221,341 Reynolds & Reynolds Co. - Class A... 10,180 290,741 Sybase, Inc.*....................... 15,305 212,893 Synopsys, Inc.*..................... 6,295 389,346 ----------- $ 1,770,677 ----------- TELECOMMUNICATION SERVICES - 1.2% Adtran, Inc.*....................... 4,240 $ 217,470 Cincinnati Bell, Inc.*.............. 25,560 171,252 ----------- $ 388,722 ----------- TRANSPORTATION - 1.5% Expeditors International Washington, Inc................... 5,230 $ 181,167 J.B. Hunt Transport Services, Inc.*. 5,345 201,774 Overseas Shipholding Group.......... 5,325 117,203 ----------- $ 500,144 ----------- UTILITIES - 7.6% Allete, Inc......................... 8,320 $ 220,896 Great Plains Energy, Inc............ 4,750 137,180 Hawaiian Electric Industries, Inc... 5,965 273,495 NSTAR Corp.......................... 7,665 349,141 Puget Energy, Inc................... 10,490 250,396 Questar Corp........................ 11,175 374,027 SCANA Corp.......................... 11,410 391,135 Sierra Pacific Resources Co.*....... 23,530 139,768 Wisconsin Energy Corp............... 11,990 347,710 ----------- $ 2,483,748 ----------- TOTAL EQUITY INTERESTS - 99.6% (identified cost, $28,123,137) $ 32,474,957 OTHER ASSETS, LESS LIABILITIES - 0.4% 139,609 ----------- NET ASSETS - 100% $ 32,614,566 ============ * Non-income-producing security See notes to financial statements WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments at value (identified cost, $28,123,137) (Note 1A) $ 32,474,957 Cash.................................... 274,766 Receivable for fund shares sold......... 28,362 Receivable from investment adviser...... 55,477 Dividends receivable.................... 22,009 Other assets............................ 3,007 ------------ Total assets.......................... $ 32,858,578 ------------ LIABILITIES: Payable for fund shares reacquired...... $ 217,620 Transfer agent fee payable.............. 5,914 Accrued expenses and other liabilities.. 20,478 ------------ Total liabilities..................... $ 244,012 ------------ NET ASSETS................................ $ 32,614,566 ============= 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................... $ 30,214,704 Accumulated undistributed net realized loss on investments (computed on the basis of identified cost)....................... (2,838,249) Unrealized appreciation on investments (computed on the basis of identified cost) 4,351,820 Undistributed net investment income..... 886,291 ------------ Net assets applicable to outstanding shares................................ $ 32,614,566 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 3,282,248 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $ 9.94 ============= STATEMENT OF OPERATIONS Six Months Ended June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1C): Dividend income......................... $ 157,758 Expenses - Investment adviser fee (Note 2)........ $ 94,674 Administrator fee (Note 2)............. 18,935 Compensation of Trustees not employees of the investment adviser or administrator... 8,001 Custodian fee.......................... 48,362 Distribution expenses (Note 3)......... 39,445 Transfer and dividend disbursing agent fees 11,590 Shareholder Communications............. 4,440 Printing............................... 2,535 Audit services......................... 38,250 Legal services......................... 4,621 Registration costs .................... 11,090 Miscellaneous.......................... 3,748 ------------ Total expenses........................ $ 285,691 ------------ Deduct - Preliminary allocation of expenses to investment adviser (Note 2)........... $ (55,477) Preliminary reduction of distribution expenses by principal underwriter (Note 3) .... (32,955) ------------ Total deductions...................... $ (88,432) ------------ Net expenses........................ $ 197,259 ------------ Net investment loss............... $ (39,501) ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on investment transactions (identified cost basis)................ $(2,413,638) Change in unrealized appreciation (depreciation) of investments ........................ 5,096,313 ------------ Net realized and unrealized gain of investments........................... $ 2,682,675 ------------ Net increase in net assets from operations.......................... $ 2,643,174 ============= See notes to financial statements WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC) - ------------------------------------------------------------------------------- Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec.31, 2002 - ------------------------------------------------------------------------------------------------------------------------------------ (unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment loss........................................................ $ (39,501) $ (179,784) Net realized gain (loss) on investments.................................... (2,413,638) 3,548 Change in unrealized appreciation (depreciation) of investments............ 5,096,313 (7,560,843) ------------ ------------ Net increase (decrease) in net assets resulting from operations.......... $ 2,643,174 $ (7,737,079) ------------ ------------ Distributions to shareholders (Note 1F) - From net realized gain..................................................... $ (470,550) $ (1,680,807) ------------ ------------ Total distributions...................................................... $ (470,550) $ (1,680,807) ------------ ------------ Net increase (decrease) in net assets from fund share transactions (Note 4).. $ (2,375,299) $ (3,647,530) ------------ ------------ Net decrease in net assets................................................... $ (202,675) $(13,065,416) NET ASSETS: At beginning of period....................................................... 32,817,241 45,882,657 ------------ ------------ At end of period............................................................. $ 32,614,566 $ 32,817,241 ============== ============== UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD................................................................ $ 886,291 $ 925,792 ============== ==============
See notes to financial statements WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC) - ------------------------------------------------------------------------------- Six Months Ended Year Ended December 31, ------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS June 30, 2003(5) 2002(5) 2001(5) 2000(5) 1999 1998 - --------------------------------------------------------------------------------------------------------------------------- (Unaudited) Net asset value, beginning of period........ $ 9.270 $ 11.580 $ 13.430 $ 15.130 $ 17.630 $ 19.200 -------- -------- --------- --------- -------- -------- Income (loss) from investment operations: Net investment (loss) income* ......... $ (0.011) $ (0.046) $ (0.045) $ (0.041) $ 0.181 $ 0.095 Net realized and unrealized gain (loss) 0.814 (1.831) (1.322) 1.638 0.638 (0.139) -------- --------- --------- -------- -------- -------- Total income (loss) from investment operations......... $ 0.803 $ (1.877) $ (1.367) $ 1.597 $ 0.819 $ (0.044) -------- --------- --------- -------- -------- -------- Less distributions: Dividends from investment income....... $ - $ - $ - $ - $ (0.055) $ (0.090) Distributions from capital gains....... (0.133) (0.433) (0.483) (3.297) (3.264) (1.436) --------- -------- --------- -------- -------- -------- Total distributions................ $ (0.133) $ (0.433) $ (0.483) $ (3.297) $ (3.319) $ (1.526) --------- -------- --------- -------- -------- -------- Net asset value, end of period.............. $ 9.940 $ 9.270 $ 11.580 $ 13.430 $ 15.130 $ 17.630 ========= ======== ======== ======== ======== ======== Total return(1) ............................ 8.91% (16.98%) (10.15%) 10.75% 5.75% 0.14% Ratios/Supplemental Data*: Net assets, end of period (000 omitted) $ 32,615 $ 32,817 $ 45,883 $ 51,201 $ 74,547 $220,965 Ratio of net expenses to average net assets 1.25%(6) 1.26%(2) 1.26%(2) 1.26%(2) 1.16%(2) 1.11%(2) Ratio of net expenses after custodian fee reduction to average net assets(4).. 1.25%(6) 1.25%(2) 1.25%(2) 1.25%(2) 1.15%(2) 1.11%(2) Ratio of net investment income (loss) to average net assets.......................... (0.25%)(6) (0.44%) (0.38%) (0.28%) 0.36% 0.46% Portfolio turnover rate .............. 64% 119%(3) 67%(3) 55%(3) 106%(3) 78%(3) - ------------------------------------------------------------------------------------------------------------------------------- * For the six months ended June 30, 2003 and for the years ended December 31, 2002, 2001, 2000 and 1999, 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 (loss) per share and the ratios would have been as follows: 2003 2002 2001 2000 1999 --------------------------------------------------------- Net investment income (loss) per share. $ (0.036) $ (0.064) $ (0.057) $ (0.051) $ 0.151 ========== ========== ========== ========== ========== Ratios (As a percentage of average net assets): Expenses........................... 1.81%(6) 1.43%(2) 1.37%(2) 1.33%(2) 1.22%(2) ========== ========== ========== ========== ========== Expenses after custodian fee reduction(4) 1.81%(6) 1.42%(2) 1.36%(2) 1.32%(2) 1.21%(2) ========== ========== ========== ========== ========== Net investment income (loss)....... (0.81%)(6) (0.61%) (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)Includes each fund's share of its corresponding portfolio's allocated expenses. (3)Represents portfolio turnover rate of the fund's corresponding portfolio. (4)Custodian fees were reduced by credits resulting from cash balances the fund and/or 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. (5)Certain per share amounts are based on average shares outstanding. (6)Annualized.
See notes to financial statements WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC) - ------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited) Shares Value EQUITY INTERESTS - 99.3% AUTOMOBILES & COMPONENTS - 1.4% AutoNation, Inc.*................... 11,690 $ 183,767 Cooper Industries, Inc. - Class A... 5,616 231,941 Paccar Inc.......................... 7,575 511,767 ----------- $ 927,475 ----------- BANKS - 8.6% Bank of America Corp................ 21,429 $ 1,693,534 First Tennessee National Corp....... 12,494 548,612 Golden West Financial Corp.......... 6,460 516,865 KeyCorp............................. 15,110 381,830 Wachovia Corp....................... 16,359 653,706 Washington Mutual Inc............... 21,878 903,561 Wells Fargo & Co.................... 23,435 1,181,124 ----------- $ 5,879,232 ----------- CAPITAL GOODS - 5.8% General Electric Co................. 95,182 $ 2,729,820 Power-One, Inc.*.................... 11,927 85,278 United Technologies Corp............ 16,200 1,147,446 ----------- $ 3,962,544 ----------- COMMERCIAL SERVICES & SUPPLIES - 1.8% Apollo Group Inc. - Class A*........ 6,585 $ 406,690 Avery Dennison Corp................. 4 201 Ecolab, Inc......................... 9,527 243,891 First Data Corp..................... 13,265 549,702 ----------- $ 1,200,484 ----------- COMMUNICATIONS EQUIPMENT - 2.5% Cisco System, Inc.*................. 77,261 $ 1,289,486 Qualcomm, Inc....................... 10,962 391,891 ----------- $ 1,681,377 ----------- COMPUTER & PERIPHERALS - 3.0% Computer Sciences Corp.*............ 5,620 $ 214,234 Dell Computer Corp.*................ 25,429 812,711 EMC Corp.*.......................... 25,355 265,467 Hewlett-Packard Co.................. 13,015 277,219 Lexmark International, Inc.*........ 3,216 227,596 Xerox Corp.*........................ 26,351 279,057 ----------- $ 2,076,284 ----------- CONSUMER DURABLES & APPAREL - 1.0% Eastman Kodak Co.................... 12,269 $ 335,557 Liz Claiborne, Inc.................. 10,651 375,448 ----------- $ 711,005 ----------- DIVERSIFIED FINANCIALS - 8.1% American Express Co................. 20,450 $ 855,014 Bear Stearns Cos. (The), Inc........ 9,796 709,426 Citigroup, Inc...................... 50,989 2,182,329 Countrywide Credit Industries, Inc.. 5,342 371,643 J.P Morgan Chase & Co............... 25,630 876,033 Lehman Brothers Holdings, Inc....... 4,645 308,800 Providian Financial Corp.*.......... 28,329 262,327 ----------- $ 5,565,572 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.9% JDS Uniphase Corp.*................. 40,410 $ 141,839 Linear Technology Corp.............. 8,600 277,006 Sanmina-SCI Corp.*.................. 31,374 197,970 ----------- $ 616,815 ----------- ENERGY - 7.8% Apache Corp......................... 10,839 $ 705,185 Burlington Resources, Inc........... 6,016 325,285 ChevronTexaco Corp.................. 18,555 1,339,671 ConocoPhillips Co................... 8,640 473,472 Devon Energy Corp................... 5,855 312,657 Exxon Mobil Corp.................... 36,600 1,314,306 Halliburton Co...................... 17,925 412,275 Praxair, Inc........................ 7,640 459,164 ----------- $ 5,342,015 ----------- FOOD & DRUG RETAILING - 0.8% Kroger Co.*......................... 13,605 $ 226,931 Sysco Corp.......................... 10,566 317,403 ----------- $ 544,334 ----------- FOOD, BEVERAGE & TOBACCO - 3.2% Anheuser Busch Cos., Inc............ 4,172 $ 212,981 Brown-Forman Corp. - Class B........ 1,975 155,274 Coca Cola Co........................ 10,285 477,327 ConAgra Foods, Inc.................. 4 94 General Mills, Inc.................. 8,635 409,385 McCormick & Co., Inc................ 9,751 265,227 PepsiCo, Inc........................ 14,938 664,741 ----------- $ 2,185,029 ----------- HEALTH CARE EQUIPMENT & SERVICES - 3.8% Aetna, Inc.......................... 6,768 $ 407,434 Anthem, Inc.*....................... 3,760 290,084 Boston Scientific Corp.*............ 7,311 446,702 C.R. Bard, Inc...................... 5,072 361,684 Quest Diagnostics, Inc.*............ 4,870 310,706 UnitedHealth Group, Inc............. 9,248 464,712 Wellpoint Health Networks, Inc.*.... 4,050 341,415 ----------- $ 2,622,737 ----------- HEAVY MACHINERY - 1.1% Caterpillar, Inc.................... 7,210 $ 401,309 Ingersoll-Rand Co. - Class A........ 7,905 374,065 ----------- $ 775,374 ----------- HOME CONSTRUCTION, FURNISHINGS & APPL. - 0.4% Whirlpool Corp...................... 4,599 $ 292,956 ----------- HOTELS, RESTAURANTS & LEISURE - 0.4% Cendant Corp.*...................... 15,885 $ 291,013 ----------- HOUSEHOLD & PERSONAL PRODUCTS - 3.8% Avon Products, Inc.................. 8,466 $ 526,585 Clorox Co........................... 8,310 354,421 Corning, Inc.*...................... 20,900 154,451 Gillette Co. (The).................. 12,095 385,347 Procter & Gamble Co................. 13,435 1,198,133 ----------- $ 2,618,937 ----------- INSURANCE - 3.2% AFLAC, Inc.......................... 17,980 $ 552,885 Allstate Corp....................... 8,404 299,603 AMBAC Financial Group, Inc.......... 4,075 269,969 Chubb Corp.......................... 4,505 270,300 Metlife, Inc........................ 15,636 442,812 XL Capital, Ltd. - Class A.......... 4,080 338,640 ----------- $ 2,174,209 ----------- MATERIALS - 0.9% Du Pont (E.I.) de Nemours & Co...... 14,186 $ 590,705 ----------- MEDIA - 3.8% AOL Time Warner, Inc.*.............. 40,672 $ 654,412 Clear Channel Communications*....... 11,330 480,279 Tribune Co.......................... 16,296 787,097 Viacom, Inc. - Class B*............. 16,250 709,475 ----------- $ 2,631,263 ----------- PHARMACEUTICALS & BIOTECHNOLOGY - 11.0% Abbott Laboratories, Inc............ 11,800 $ 516,368 Allergan, Inc....................... 6,627 510,942 Amgen, Inc.*........................ 9,618 639,020 Forest Laboratories, Inc. - Class A* 8,710 476,872 Genzyme Corp. - General Division*... 5,871 245,408 Johnson & Johnson, Inc.............. 23,296 1,204,403 Medtronic, Inc...................... 11,216 538,032 Merck & Co., Inc.................... 24,681 1,494,435 Pfizer, Inc......................... 30,023 1,025,285 Watson Pharmaceuticals, Inc.*....... 9,616 388,198 Wyeth Corp.......................... 10,715 488,068 ----------- $ 7,527,031 ----------- RETAILING - 8.4% Bed Bath & Beyond, Inc.*............ 6,614 $ 256,689 Best Buy Co., Inc.*................. 12,726 558,926 Costco Wholesale Corp.*............. 10,615 388,509 eBay, Inc.*......................... 5,665 590,076 Gap (The), Inc...................... 20,699 388,313 Home Depot, Inc..................... 16,855 558,238 J.C. Penney Co., Inc................ 1 17 Lowes Cos., Inc..................... 10,016 430,187 Staples, Inc.*...................... 17,271 316,923 Target Corp......................... 10,710 405,266 Wal-Mart Stores, Inc................ 34,826 1,869,111 ----------- $ 5,762,255 ----------- SEMICONDUCTOR EQUIPMENT & PRODUCTS - 3.0% Applied Materials, Inc.*............ 20,540 $ 325,764 Intel Corp.......................... 60,963 1,267,055 QLogic Corp.*....................... 9,263 447,681 ----------- $ 2,040,500 ----------- SOFTWARE & SERVICES - 7.5% International Business Machines Corp. 13,408 $ 1,106,160 Mercury Interactive Corp.*.......... 8,524 329,112 Microsoft Corp...................... 85,039 2,177,849 Oracle Corp.*....................... 54,368 653,503 Symantec Corp.*..................... 7,150 313,599 Yahoo, Inc.*........................ 16,198 530,646 ----------- $ 5,110,869 ----------- TELECOMMUNICATION SERVICES - 4.3% Alltel Corp......................... 11,917 $ 574,638 AT&T Wireless Services, Inc.*....... 24,422 200,505 Centurytel, Inc..................... 13,808 481,209 Citizens Communications Co.*........ 8,385 108,083 Nextel Communications, Inc. - Class A*.................... 28,857 521,735 Verizon Communications, Inc......... 26,562 1,047,871 ----------- $ 2,934,041 ----------- TRANSPORTATION - 1.0% Fedex Corp.......................... 5,004 $ 310,398 Union Pacific Corp.................. 6,921 401,556 ----------- $ 711,954 ----------- UTILITIES - 1.8% Dominion Resources, Inc............. 5,520 $ 354,770 Entergy Corp........................ 7,288 384,661 Exelon Corp......................... 4,383 262,147 Sempra Energy....................... 8,630 246,214 ----------- $ 1,247,792 ----------- TOTAL EQUITY INTERESTS -- 99.3% (identified cost, $63,512,856) $ 68,023,802 OTHER ASSETS, LESS LIABILITIES -- 0.7% 485,850 ----------- NET ASSETS -- 100% $ 68,509,652 ============ * Non-income-producing security. See notes to financial statements WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments at value (identified cost, $63,512,856) (Note 1A) $ 68,023,802 Cash.................................... 407,476 Receivable for fund shares sold......... 30,540 Receivable from investment adviser...... 27,364 Dividends receivable.................... 76,124 Other assets............................ 3,374 ------------ Total assets.......................... $ 68,568,680 ------------ LIABILITIES: Payable for fund shares reacquired...... $ 37,395 Transfer agent fee...................... 7,863 Accrued expenses and other liabilities.. 13,770 ------------ Total liabilities..................... $ 59,028 ------------ NET ASSETS................................ $ 68,509,652 ============ 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................... $104,221,508 Accumulated undistributed net realized loss on investments (computed on the basis of identified cost).................... (40,092,354) Unrealized appreciation on investments (computed on the basis of identified cost) 4,510,946 Distributions in excess of net investment income...................... (130,448) ------------ Net assets applicable to outstanding shares................................ $ 68,509,652 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 7,330,598 ============= NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $ 9.35 ============= STATEMENT OF OPERATIONS Six Months Ended June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1C): Dividend income......................... $ 493,317 Expenses - Investment adviser fee (Note 2)........ $ 197,277 Administrator fee - (Note 2)........... 39,455 Compensation of Trustees not employees of the investment adviser or administrator... 8,001 Custodian fee (Note 1D)................ 48,185 Distribution expenses (Note 3)........ 82,206 Transfer and dividend disbursing agent fees 13,055 Shareholder Communications............. 7,649 Printing............................... 3,374 Audit services......................... 31,600 Legal services......................... 7,095 Registration costs..................... 9,584 Miscellaneous.......................... 4,595 ------------ Total expenses........................ $ 452,076 ------------ Deduct - Preliminary allocation of expenses to the investment adviser (Note 2)........... $ (27,364) Preliminary reduction of distribution expenses by principal underwriter (Note 3)..... (13,564) ------------ Total deductions...................... $ (40,928) ------------ Net expenses.......................... $ 411,148 ------------ Net investment income............... $ 82,169 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on investment transactions (identified cost basis)................ $(2,983,633) Change in unrealized appreciation (depreciation) of investments......................... 8,689,421 ------------ Net realized and unrealized gain of investments......................... $ 5,705,788 ------------ Net increase in net assets from operation............................. $ 5,787,957 ============= See notes to financial statements WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC) - ------------------------------------------------------------------------------- Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31,2002 - -------------------------------------------------------------------------------------------------------------------------------- (unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income ..................................................... $ 82,169 $ 191,576 Net realized loss on investments........................................... (2,983,633) (16,457,346) Change in unrealized appreciation (depreciation) on investments............ 8,689,421 (5,662,120) ------------ ------------ Net increase (decrease) in net assets resulting from operations.......... $ 5,787,957 $(21,927,890) ------------ ------------ Distributions to shareholders From net investment income................................................. $ (16,915) $ (171,114) ------------ ------------ Total distributions...................................................... $ (16,915) $ (171,114) ------------ ------------ Net increase (decrease) in net assets from fund share transactions (Note 4) Standard shares............................................................ $ (3,870,861) $ (5,030,351) Institutional shares (Note 8).............................................. -- (1,382,497) ------------ ------------ Net decrease in net assets from fund share transactions...................... $ (3,870,861) $ (6,412,848) ------------ ------------ Net Increase (decrease) in net assets........................................ $ 1,900,181 $(28,511,852) NET ASSETS: At beginning of period....................................................... 66,609,471 95,121,323 ------------ ------------ At end of period............................................................. $ 68,509,652 $ 66,609,471 ============== ============== DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD............................................................. $ (130,448) $ (195,702) ============== ==============
See notes to financial statements WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC) - ------------------------------------------------------------------------------- Six Months Ended Year Ended December 31, ------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS June 30, 2003(4) 2002(4) 2001(4) 2000(4) 1999(4) 1998 - ----------------------------------------------------------------------------------------------------------------------------------- (Unaudited) Net asset value, beginning of period........ $ 8.570 $ 11.380 $ 13.690 $ 16.290 $ 13.670 $ 12.020 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income (loss)(1) ....... $ 0.011 $ 0.024 $ (0.009) $ (0.001) $ 0.042 $ 0.091 Net realized and unrealized gain (loss) 0.771 (2.812) (2.301) (2.005) 3.202 2.324 -------- -------- -------- -------- -------- -------- Total income (loss) from investment operations......... $ 0.782 $ (2.788) $ (2.310) $ (2.006) $ 3.244 $ 2.415 -------- -------- -------- -------- -------- -------- Less distributions: Dividends from investment income....... $ (0.002) $ (0.022) $ - $ (0.010) $ (0.045) $ (0.055) Distributions from capital gains....... - - - (0.584) (0.579) (0.710) -------- -------- -------- -------- -------- -------- Total distributions................ $ (0.002) $ (0.022) $ - $ (0.594) $ (0.624) $ (0.765) -------- -------- -------- -------- -------- -------- Net asset value, end of period.............. $ 9.350 $ 8.570 $ 11.380 $ 13.690 $ 16.290 $ 13.670 ========== ========== ========== ========== ========== ========== Total Return(3) ............................ 9.13% (24.50%) (16.87%) (12.49%) 23.95% 20.43% Ratios/Supplemental Data(1): Net assets, end of period (000 omitted) $ 68,510 $ 66,609 $ 93,696 $ 135,262 $ 144,359 $ 50,878 Ratio of net expenses to average net assets 1.25%(7) 1.22% 1.13% 1.06% 1.05% 1.07% Ratio of net expenses after custodian fee reduction to average net assets(2)(6) 1.25%(7) 1.22% 1.13% 1.06% 1.05% 1.05% Ratio of net investment income (loss) to average net assets ................. 0.25%(7) 0.25% (0.08%) (0.00%)(5) 0.27% 0.49% Portfolio turnover rate................ 56% 130% 78% 88% 59% 36% - ----------------------------------------------------------------------------------------------------------------------------------- (1)For the six months ended June 30, 2003 and for the years ended December 31, 1999 and 1998, 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: 2003 1999 1998 ------ ---------------------------- Net investment income per share........ $ 0.006 $ 0.034 $ 0.052 ========== ========== ========== Ratios (As a percentage of average net assets): Expenses............................. 1.37%(7) 1.10% 1.28% ========== ========== ========== Expenses after custodian fee reduction(2) 1.37%(7) 1.10% 1.26% ========== ========== ========== Net investment income................ 0.13%(7) 0.22% 0.28% ========== ========== ========== - ---------------------------------------------------------------------------------------------------------------------------------- (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)Annualized.
See notes to financial statements WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) - ------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited) Shares Value EQUITY INTERESTS - 99.6% AUSTRALIA - 3.0% Australia & New Zealand Banking Group.............................. 49,150 $ 613,431 Bhp Billiton, Ltd................... 33,100 191,795 National Australia Bank, Ltd........ 29,550 663,893 ----------- $ 1,469,119 ----------- BELGIUM - 0.7% Colruyt SA.......................... 4,700 $ 324,914 ----------- CANADA - 4.0% Bank of Nova Scotia................. 25,700 $ 1,136,758 Cognos, Inc.*....................... 3,300 89,100 Royal Bank of Canada................ 16,950 715,798 ----------- $ 1,941,656 ----------- DENMARK - 0.3% TDC A/S............................. 5,040 $ 150,730 ----------- FINLAND - 1.4% Nokia OYJ - Sponsored ADR........... 30,788 $ 505,847 UPM-Kymmene OYJ..................... 10,300 150,334 ----------- $ 656,181 ----------- FRANCE - 10.8% Aventis SA.......................... 9,200 $ 506,161 AXA................................. 22,825 354,112 BNP Paribas SA...................... 14,398 731,627 Carrefour SA........................ 4,947 242,460 Casino Guichard Perrachon........... 2,700 210,837 Compagnie De Saint-Gobain........... 6,300 247,930 Groupe Danone SA.................... 1,900 262,915 Orange SA*.......................... 29,000 257,426 Pernod-Ricard....................... 1,812 161,679 Pinault-Printemps-Redoute........... 3,300 248,595 Renault SA.......................... 4,400 232,628 STMicroelectronics NV............... 9,988 209,437 Thomson............................. 9,300 143,428 TotalFinaElf SA..................... 5,655 854,600 Vivendi Universal SA*............... 15,745 286,580 Zodiac SA........................... 12,300 300,009 ----------- $ 5,250,424 ----------- GERMANY - 7.7% BASF AG............................. 6,970 $ 297,749 Bayerische Motoren Werke AG......... 9,100 350,074 Deutsche Bank AG.................... 7,400 479,955 Deutsche Telekom AG, Spons. ADR*.... 21,440 325,888 E. On AG............................ 19,000 976,821 Muenchener Rueckver AG - Registered. 4,250 433,290 SAP AG.............................. 2,400 283,045 Siemens AG.......................... 9,600 470,952 Thyssen Krupp....................... 8,150 93,965 ----------- $ 3,711,739 ----------- GREECE - 0.4% Hellenic Bottling Co. SA............ 12,470 $ 208,212 ----------- HONG KONG - 1.4% China Mobile, Ltd................... 72,300 $ 170,594 Esprit Holdings, Ltd................ 84,700 206,913 Hutchison Whampoa, Ltd.............. 52,700 321,006 ----------- $ 698,513 ----------- ISRAEL - 0.5% Teva Pharmaceutical - Sponsored ADR. 4,400 $ 250,492 ----------- ITALY - 0.5% Tim SpA............................. 44,785 $ 220,630 ----------- JAPAN - 17.1% Belluna Co., Ltd.................... 3,700 $ 150,989 Bridgestone Corp.................... 19,000 257,922 Canon, Inc.......................... 13,000 596,544 Daikin Industries, Ltd.............. 16,000 293,816 Daito Trust Construct Co., Ltd...... 8,700 182,948 Denso Corp.......................... 14,200 225,048 Eisai Co., Ltd...................... 12,700 261,245 Fanuc, Ltd.......................... 5,900 292,359 Fuji Photo Film Co., Ltd............ 7,000 202,290 Honda Motor Co., Ltd................ 19,100 723,756 Kao Corp............................ 6,000 111,680 Keyence Corp........................ 910 166,729 Kyushu Electric Power............... 11,900 185,227 Nissan Motor Co., Ltd............... 39,100 373,823 Nomura Holdings, Inc................ 30,000 380,762 NTT DoCoMo, Inc..................... 375 811,993 Ricoh Co., Ltd...................... 17,000 277,776 Rohm Co., Ltd....................... 2,300 250,735 Shin-Etsu Chemical Co............... 17,500 597,543 SMC Corp............................ 3,100 261,012 Sony Corp........................... 10,000 281,491 Takeda Chemicals Industries, Ltd.... 14,300 527,579 Toyota Motor Corp................... 23,100 598,301 Yamanouchi Pharmaceutical Co., Ltd.. 10,900 284.131 ----------- $ 8,295,699 ----------- MEXICO - 1.1% Telefonos De Mexico.................327,400 $ 515,724 ----------- NETHERLANDS - 5.1% ABN Amro Holdings NV................ 19,300 $ 369,017 DSM NV.............................. 5,800 244,571 IHC Caland NV....................... 8,269 422,179 ING Groep NV........................ 25,509 443,207 Koninklijke Philips Electronics NV.. 17,259 328,209 Royal Dutch Petroleum Co............ 14,384 667,652 ----------- $ 2,474,835 ----------- NORWAY - 1.5% Norsk Hydro ASA..................... 15,200 $ 747,534 ----------- SOUTH KOREA - 0.6% KT Corp., Sponsored ADR............. 16,000 $ 315,360 ----------- SPAIN - 9.0% Acerinox SA......................... 2,400 $ 91,721 Altadis SA.......................... 11,100 284,506 Banco Popular Espanol............... 3,300 166,740 Cia Espanola de Petroleos SA........ 23,174 630,701 Corporacion Mapfre SA............... 38,700 413,303 Ebro Puleva SA...................... 17,000 162,032 Endesa SA........................... 41,600 696,506 Fomento De Construc Y Contra........ 3,900 108,963 Gas Natural SDG SA.................. 21,500 432,067 Grupo Dragados SA................... 8,352 168,131 Grupo Ferrovial SA.................. 8,700 236,279 Indra Sistemas SA................... 32,800 333,343 Repsol Vpf SA....................... 12,700 205,927 Telefonica SA....................... 35,703 414,505 ----------- $ 4,344,724 ----------- SWEDEN - 0.6% Telefon. LM Ericsson, Sponsored ADR* 29,620 $ 314,861 ----------- SWITZERLAND - 6.8% Nestle SA........................... 4,600 $ 949,171 Novartis AG......................... 27,580 1,091,350 Swiss Reinsurance AG................ 4,700 $ 260,408 UBS AG.............................. 12,700 706,467 Zurich Financial Services*.......... 2,240 267,070 ----------- $ 3,274,466 ----------- UNITED KINGDOM - 27.1% Alliance Unichem PLC................ 46,662 $ 381,339 Amvescap PLC........................ 26,311 181,483 Anglo American PLC.................. 33,400 509,814 Baa PLC............................. 36,500 295,430 Barclays PLC........................133,068 988,120 BHP Billiton, Ltd................... 44,033 231,789 BP PLC..............................127,390 883,418 British American Tobacco Industries PL...................... 41,883 475,153 British Sky Broadcasting Group PLC*. 31,900 353,476 BT Group PLC........................105,000 353,029 Diageo PLC.......................... 73,049 779,905 GlaxoSmithkline PLC................. 51,224 1,033,769 Great Universal Stores PLC.......... 31,136 348,864 Hbos PLC............................ 44,100 570,893 HSBC Holdings PLC................... 98,233 1,160,630 Jarvis PLC.......................... 26,000 154,231 Johnson Matthey PLC................. 11,100 161,736 Kingfisher PLC...................... 59,900 274,045 Legal & General Group PLC...........168,603 233,705 Lloyds TSB Group PLC................ 70,165 498,155 Persimmon........................... 27,100 213,310 Reckitt Benckiser PLC............... 14,394 264,125 Royal Bank of Scotland Group PLC.... 35,100 984,645 Shell Transport & Trading Co. PLC... 92,296 609,209 Unilever PLC........................ 37,536 298,861 Vodafone Group PLC..................456,000 891,675 ----------- $ 13,130,809 ----------- TOTAL EQUITY INTERESTS - 99.6% (identified cost, $45,975,981) $ 48,296,622 ----------- OTHER ASSETS, LESS LIABILITIES -- 0.4% 202,494 ----------- NET ASSETS -- 100% $ 48,499,116 ============ * Non-income-producing security. ADR: American Depository Receipts. See notes to financial statements Wright International Blue Chip Equities Fund (WIBC) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- ASSETS: Investment at value (identified cost, $45,975,981) (Note 1A) $ 48,296,622 Cash.................................... 723 Foreign currency, at value (cost $30,018) (Note 1) 29,877 Receivable for investments sold......... 225,198 Receivable for fund shares sold......... 4,793 Receivable from investment adviser...... 9,767 Dividends receivable.................... 101,416 Other assets............................ 126,630 ------------ Total assets.......................... $ 48,795,026 ------------ LIABILITIES: Payable for fund shares reacquired...... $ 15,991 Demand note payable..................... 254,000 Transfer agent fee payable.............. 7,901 Accrued expenses and other liabilities.. 18,018 ------------ Total liabilities..................... $ 295,910 ------------ NET ASSETS................................ $ 48,499,116 ============ 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................... $ 73,753,566 Accumulated undistributed net realized loss on investments and foreign currency (computed on the basis of identified cost)....... (29,652,750) Unrealized appreciation of investments and translation of assets and liabilities in foreign currencies (computed on the basis of identified cost)....................... 2,328,195 Undistributed net investment income..... 2,070,105 ------------ Net assets applicable to outstanding shares................................ $ 48,499,116 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 4,500,180 ============= NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $ 10.78 ============= STATEMENT OF OPERATIONS Six Months Ended June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1C): Dividend income ........................ $ 1,150,485 Less: Foreign taxes..................... (139,268) ------------ Investment income..................... $ 1,011,217 ------------ Expenses - Investment adviser fee (Note 2)........ $ 225,385 Administrator fee (Note 2)............. 47,894 Compensation of Trustees not employees of the investment adviser or administrator 8,000 Custodian fee - Standard shares..................... 75,675 - Institutional shares................ 4,107 Distribution expenses (Note 3)......... 60,676 Shareholder Communications............. 6,002 Transfer and dividend disbursing agent fees - Standard shares..................... 13,804 - Institutional shares................ 4,037 Printing............................... 2,686 Audit services......................... 41,600 Legal services......................... 6,913 Registration costs - Standard shares..................... 10,711 - Institutional shares................ 8,219 Miscellaneous.......................... 8,553 ------------ Total expenses........................ $ 524,262 ------------ Deduct - Preliminary allocation of expenses to the investment adviser (Note 2)........... $ (9,767) Allocation of Institutional class expenses to investment adviser (Note 2)........... (3,538) ------------ Total deductions...................... $ (13,305) ------------ Net expenses.......................... $ 510,957 ------------ Net investment income............. $ 500,260 ------------ REALIZED AND UNREALIZED GAIN (LOSS): Net realized loss on investment and foreign currency transactions (identified cost basis)................. $(2,422,079) Change in unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currencies...... 7,444,656 ------------ Net realized and unrealized gain of investments............................ $ 5,022,577 ------------ Net increase in net assets from operations........................... $ 5,522,837 ============= See notes to financial statements WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) - ------------------------------------------------------------------------------- Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31,2002 - ----------------------------------------------------------------------------------------------------------------------------------- (unaudited) DECREASE IN NET ASSETS: From operations - Net investment income ..................................................... $ 500,260 $ 466,265 Net realized loss on investments and foreign currency transactions......... (2,422,079) (12,072,706) Change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies........... 7,444,656 793,286 ------------ ------------ Net increase (decrease) in net assets resulting from operations.......... $ 5,522,837 $(10,813,155) ------------ ------------ Distributions to shareholders From net investment income Standard shares............................................................ $ (338,309) $ -- Institutional shares....................................................... (69,545) -- ------------ ------------ Total distributions...................................................... $ (407,854) $ -- ------------ ------------ Net increase (decrease) in net assets from fund share transactions Standard shares............................................................ $ (6,809,790) $ (6,953,683) Institutional shares....................................................... (11,047,783) (1,005,127) ------------ ------------ Net decrease in net assets from fund share transactions...................... $(17,857,573) $ (7,958,810) ------------ ------------ Net decrease in net assets................................................... $(12,742,590) $(18,771,965) NET ASSETS: At beginning of period....................................................... 61,241,706 80,013,671 ------------ ------------ At end of period............................................................. $ 48,499,116 $ 61,241,706 ============== ============== UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD................................................................ $ 2,070,105 $ 1,977,699 ============== ==============
See notes to financial statements WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) - ------------------------------------------------------------------------------- Six Months Ended Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS June 30, 2003(4) 2002(4) 2001(4) 2000(4) 1999(4) 1998 - --------------------------------------------------------------------------------------------------------------------------------- (Unaudited) Net asset value, beginning of period........ $ 9.840 $11.510 $15.180 $18.900 $16.020 $16.020 --------- --------- --------- --------- --------- --------- Income (loss) from investment operations: Net investment income (loss) .......... $ 0.085 $ 0.070 $ (0.023) $ 0.135 $ (0.004) $ 0.078 Net realized and unrealized gain (loss) 0.922 (1.740) (3.647) (3.455) 5.181 0.868(+) --------- --------- --------- --------- --------- --------- Total income (loss) from investment operations...... $ 1.007 $ (1.670) $ (3.670) $ (3.320) $ 5.177 $ 0.946 --------- --------- --------- --------- --------- --------- Less distributions: Dividends from investment income....... $ (0.067) $ - $ - $ - $ - $ (0.070) Distributions from capital gains....... - - - (0.400) (2.297) (0.876) --------- --------- --------- --------- --------- --------- Total distributions................ $ (0.067) $ - $ - $ (0.400) $ (2.297) $ (0.946) --------- --------- --------- --------- --------- --------- Net asset value, end of period.............. $ 10.780 $ 9.840 $11.510 $15.180 $18.900 $16.020 ========== ========== ========== ========== ========== ========== Total return(1) ............................ 10.36% (14.51%) (24.18%) (17.58%) 34.26% 6.14% Ratios/Supplemental Data* Net assets, end of period (000 omitted) $ 48,499 $ 50,835 $ 66,828 $110,868 $147,610 $193,327 Ratio of net expenses to average net assets 1.85%(6) 1.66%(2) 1.56%(2) 1.49%(2) 1.49%(2) 1.35%(2) Ratio of net expenses after custodian fee reduction to average net assets(5) 1.85%(6) 1.65% - - - - Ratio of net investment income (loss) to average net assets 1.72%(6) 0.65% (0.18%) 0.76% (0.02%) 0.42% Portfolio turnover rate .............. 26% 62%(3) 39%(3) 53%(3) 105%(3) 66%(3) - ----------------------------------------------------------------------------------------------------------------------------------- (1)For the six months ended June 30, 2003 , the operating expenses of the Fund were reduced by an allocation of expenses to the investment adviser. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 2003 Net investment income per share........ $ 0.083 ========== Ratios (As a percentage of average net assets): Expenses............................. 1.89%(6) ========== Expenses after custodian fee reduction 1.89%(6) ========== Net investment income................ 1.68%(6) ========== - ----------------------------------------------------------------------------------------------------------------------------------- (1)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each 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)Custodian fees were reduced by credits resulting from cash balances the fund and/or 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)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 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 (WSBC) 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. The Funds seek to provide total return consisting of price appreciation and current income. Prior to December 20, 2002, WSBC and WIBC invested 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. Subsequent to December 20, 2002, the Funds invest directly in securities rather than through the Portfolios and maintain the same investment objectives. 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 - 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. 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 - 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. 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, 2002, the Trust, for federal income tax purposes, had capital loss carryovers of $26,538,426 (WIBC) and $34,731,982 (WMBC) which will reduce the Funds' taxable income arising from future net realized gain on investment transactions, if any, to the extent permitted by the Code, and thus will reduce the amount of the distribution to shareholders which would otherwise be necessary to relieve the respective fund of any liability for federal income or excise tax. Pursuant to the Code, such capital loss carryovers will expire as follows: 12/31 WMBC WIBC ----- ----- 2009 $17,128,584 $12,528,270 2010 17,603,398 14,010,156 At December 31, 2002, net capital losses of $820,207 for WIBC, $405,959 for WSBC and $1,770,454 for WMBC attributable to security transactions incurred after October 31, 2002 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. 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. Interim Financial Information - The interim financial statements relating to June 30, 2003 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 Funds pursuant to an Investment Advisory Contract. Wright furnishes the Funds 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, 2003, the effective annual rate was 0.80% for WIBC and 0.60% for WSBC and WMBC. Wright has been allocated expenses of $55,477, $27,364 and $9,767 on a preliminary basis on behalf of WSBC, WMBC and WIBC, respectively. In addition, Wright was allocated $3,538 in expenses on behalf of the Institutional class of WIBC. 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, 2003, the effective rate (annualized) was 0.12% for WSBC, 0.12% for WMBC, and 0.17% 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 for activities primarily intended to result in the sale of each fund's shares. To enhance the net income of WSBC and WMBC, the principal underwriter made a preliminary reduction of its fees of $32,955 and $13,564, 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 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, 2003, the funds did not accrue or pay any service fees. (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: Six Months Ended Year Ended June 30, 2003 December 31, 2002 ----------------------------------------------------------- Shares Amount Shares Amount - ------------------------------------------------------------------------------------------------------------------------- Wright Selected Blue Chip Equities Fund-- Sold................................................... 780,482 $ 7,210,953 1,216,462 $ 12,859,399 Issued to shareholders in payment of distributions declare................................. 47,582 403,022 126,916 1,479,836 Redemptions............................................ (1,086,170) (9,989,274) (1,765,707) (17,986,765) ----------- -------------- ----------- -------------- Net decrease......................................... (258,106) $ (2,375,299) (422,329) $ (3,647,530) ============= ================= ============= ================= Wright Major Blue Chip Equities Fund - Standard Shares: Sold................................................... 895,362 $ 7,893,433 2,407,645 $ 23,061,486 Issued to shareholders in payment of distributions declared................................ 1,704 14,000 16,073 140,477 Redemptions............................................ (1,340,459) (11,778,294) (2,884,658) (28,232,314) ----------- -------------- ----------- -------------- Net decrease......................................... (443,393) $ (3,870,861) (460,940) $ (5,030,351) ============= ================= ============= ================= Wright Major Blue Chip Equities Fund - Institutional Shares: Sold.................................................. - $ - - $ - Redemptions............................................ - - (206,264) (1,382,497) ----------- -------------- ----------- -------------- Net decrease......................................... - $ - (206,264) $ (1,382,497) ============= ================= ============= ================= Wright International Blue Chip Equities Fund-- Standard Shares: Sold................................................... 653,991 $ 6,333,549 1,055,345 $ 11,115,594 Issued to shareholders in payment of distributions declared................................ 25,450 231,084 16,073 140,477 Redemptions............................................ (1,345,097) (13,374,423) (1,694,585) (18,069,277) ----------- -------------- ----------- -------------- Net decrease......................................... (665,656) $ (6,809,790) (639,240) $ (6,953,683) =========== ============== ============= ================= Wright International Blue Chip Equities Fund-- Institutional Shares: Issued to shareholders in payment of distributions declared................................ 16,247 $ 69,545 - $ - Redemptions............................................ (2,259,640) (11,117,328) (186,188) (1,005,127) ----------- -------------- ----------- -------------- Net decrease........................................... (2,243,393) $ (11,047,783) (186,188) $ (1,005,127) ============= ============== ============= ===============
(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, 2003 --------------------------------------------- WSBC WMBC WIBC - ------------------------------------------------------------------------------- Purchases..... $ 20,534,868 $ 38,735,043 $ 14,621,326 ============== ============== ============== Sales......... $ 23,466,893 $ 42,693,268 $ 32,150,653 ============== ============== ============== - ------------------------------------------------------------------------------- (6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) of the investment securities owned at June 30, 2003, as computed on a federal income tax basis, are as follows: WSBC WMBC WIBC - ------------------------------------------------------------------------------- Aggregate cost $ 28,123,137 $ 63,512,856 $ 45,975,981 ============== ============== ============== Gross unrealized appreciation 4,899,892 7,604,018 5,535,746 Gross unrealized depreciation (548,072) (3,093,072) (3,215,105) ------------- ------------- ------------- Net unrealized appreciation $ 4,351,820 $ 4,510,946 $ 2,320,641 ============== ============== ============== - ------------------------------------------------------------------------------- (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, 2003. WIBC has $254,000 outstanding at June 30, 2003. (8) CLASS ELIMINATION The Institutional Share class of International Blue Chip Equities Fund was fully liquidated on May 20, 2003. WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) - ------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited) Face Interest Maturity Amount Issuer Rate Date Value - ------------------------------------------------------------------------------- U.S. TREASURY BILLS $1,535,000 U.S. Treasury Bills 1.080% 07-03-03 $ 1,534,908 140,000 U.S. Treasury Bills 1.115% 07-03-03 139,992 850,000 U.S. Treasury Bills 1.045% 07-10-03 849,778 725,000 U.S. Treasury Bills 1.050% 07-10-03 724,810 750,000 U.S. Treasury Bills 0.840% 07-17-03 749,720 200,000 U.S. Treasury Bills 1.015% 07-24-03 199,870 1,000,000 U.S. Treasury Bills 1.055% 07-24-03 999,326 675,000 U.S. Treasury Bills 1.010% 08-14-03 674,167 375,000 U.S. Treasury Bills 1.060% 08-14-03 374,514 975,000 U.S. Treasury Bills 1.130% 08-14-03 973,654 1,150,000 U.S. Treasury Bills 0.910% 08-21-03 1,148,517 125,000 U.S. Treasury Bills 1.000% 08-21-03 124,823 2,175,000 U.S. Treasury Bills 1.050% 08-21-03 2,171,765 1,200,000 U.S. Treasury Bills 1.070% 08-21-03 1,198,181 675,000 U.S. Treasury Bills 1.080% 08-21-03 673,967 1,550,000 U.S. Treasury Bills 1.020% 08-28-03 1,547,453 $ 250,000 U.S. Treasury Bills 0.835% 09-11-03 $ 249,583 1,300,000 U.S. Treasury Bills 1.000% 09-11-03 1,297,400 350,000 U.S. Treasury Bills 0.795% 09-18-03 349,389 750,000 U.S. Treasury Bills 0.870% 09-25-03 748,441 1,100,000 U.S. Treasury Bills 0.980% 10-02-03 1,097,215 ---------- TOTAL INVESTMENTS AT AMORTIZED COST -- 96.8% $17,827,473 Other Assets, Less Liabilities -- 3.2% 592,445 ------------ Net Assets -- 100.0% $18,419,918 ============ See notes to financial statements WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- ASSETS: Total investments, at amortized cost (Note 1A).............................. $ 17,827,473 Cash.................................... 543,326 Receivable from investment adviser...... 62,387 Interest receivable..................... 117 Other assets............................ 6,283 ------------ Total assets.......................... $ 18,439,586 ------------ LIABILITIES: Distributions payable................... $ 3,858 Transfer agent fee payable.............. 4,000 Accrued expenses and other liabilities.. 11,810 ------------ Total liabilities..................... $ 19,668 ------------ NET ASSETS (consisting of paid-in capital) $ 18,419,918 ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING............................. 18,415,905 ============== NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST.................. $ 1.00 ============== STATEMENT OF OPERATIONS Six Months Ended June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Interest income........................ $ 100,081 ------------ Expenses - Investment adviser fee (Note 3)........ $ 30,008 Administrative fee (Note 3)............ 6,002 Compensation of Trustees not employees of the investment adviser or administrator 4,800 Custodian fee (Note 1C)................ 25,597 Transfer and dividend disbursing agent fees 9,249 Shareholder Communications............. 2,042 Printing............................... 1,312 Audit services......................... 30,500 Legal services......................... 2,410 Registration costs..................... 12,841 Miscellaneous.......................... 6,226 ------------ Total expenses........................ $ 130,987 ------------ Deduct - Preliminary allocation of expenses to investment adviser (Note 3)...................... $ (62,387) Preliminary reduction of investment adviser fee (Note 3).............................. (30,008) ------------ Total deductions...................... $ (92,395) ------------ Net expenses.......................... $ 38,592 ------------ Net investment income............... $ 61,489 ------------ REALIZED GAIN ON INVESTMENTS: Net realized gain on investments sold... $ 525 ------------ Net increase in net assets from operations $ 62,014 ============ See notes to financial statements WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) - ------------------------------------------------------------------------------- Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31, 2002 - ----------------------------------------------------------------------------------------------------------------------------------- (unaudited) INCREASE (DECREASE) IN NET ASSETS: Net investment income...................................................... $ 61,489 $ 220,545 Net realized gain (loss) on investments ................................... 525 (341) ------------ ------------ Net increase in net assets resulting from operations..................... $ 62,014 $ 220,204 ------------ ------------ Distributions to shareholders (Note 2) - From net investment income................................................. $ (59,731) $ (279,831) ------------ ------------ Total distributions...................................................... $ (59,731) $ (279,831) ------------ ------------ Fund share transactions+ - Proceeds from shares sold.................................................. $ 24,085,665 $ 36,968,761 Reinvestment of dividends.................................................. 35,043 156,734 Cost of shares reacquired.................................................. (23,071,734) (38,281,095) ------------ ------------ Net increase (decease) in net assets from fund share transactions.......... $ 1,048,974 $ (1,155,600) ------------ ------------ Net decrease in net assets............................................... $ 1,051,257 $ (1,215,227) NET ASSETS: At beginning of period....................................................... 17,368,661 18,583,888 ------------ ------------ At end of period............................................................. $ 18,419,918 $ 17,368,661 ============= ============= + For WTMM, the Fund share transactions are at a net asset value of $1.00 per share.
See notes to financial statements WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) - ------------------------------------------------------------------------------- Six Months Ended Year Ended December 31, ------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS June 30, 2003 2002(5) 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ (Unaudited) 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) ................. 0.0035 0.0130 0.0359 0.0530 0.0420 0.0460 Net realized gain on investments sold....... - (+) 0.0263(+) 0.0004 -- -- -- (+) -------- -------- -------- -------- -------- -------- Total income from investment operations..... $ 0.0035 $ 0.0393 $ 0.0363 $ 0.0530 $ 0.0420 $ 0.0460 Less distributions: Distributions from net investment income.... $(0.0035) $ (0.0393) $ (0.0359) $ (0.0530) $ (0.0420) $ (0.0460) Distributions from net realized gain........ - -- (0.0004) -- -- -- -------- -------- -------- -------- -------- -------- Total distributions......................... $(0.0035) $ (0.0393) $ (0.0363) $ (0.0530) $ (0.0420) $ (0.0460) -------- -------- -------- -------- -------- -------- Net asset value, end of period................. $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 ========= ========= ========= ========= ========= ========= Total return(2) ............................... 0.70%(6) 1.61% 3.70% 5.44% 4.29% 4.73% Ratios/Supplemental Data(1): Net assets, end of period (000 omitted)..... $18,420 $ 17,369 $ 18,523 $43,608 $62,527 $91,323 Ratio of net expenses to average net assets 0.45%(6) 0.46% 0.47% 0.46% 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 assets........................ 0.72%(6) 1.28% 3.93% 5.33% 4.19% 4.61% - ------------------------------------------------------------------------------------------------------------------------------- (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: 2003 2002 2001 2000 1999 1998 ---------------------------------------------------------------------- Net investment income per share................ $(0.0018) $ 0.0056 $ 0.0330 $ 0.0505 $ 0.0402 $ 0.0444 ========= ========= ========= ========= ========= ========= Ratios (as a percentage of average net assets): Expenses.................................... 1.53%(6) 1.18% 0.88% 0.71% 0.63% 0.61% ========= ========= ========= ========= ========= ========= Expenses after custodian fee reduction(3) .. 1.53%(6) 1.17% 0.86% 0.70% 0.63% 0.61% ========= ========= ========= ========= ========= ========= Net investment income (loss) ............... (0.36%)(6) 0.55% 3.52% 5.08% 4.01% 4.45% ========= ========= ========= ========= ========= ========= - ----------------------------------------------------------------------------------------------------------------------------------- (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% after custodian fee credits are applied. (5)Certain of the per share data are based on average shares outstanding. (6)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.
WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB) - ------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited) Face Coupon Maturity Market Current Amount Description Rate Date Price Value Yield - ------------------------------------------------------------------------------------------------------------------------------- MORTAGE-BACKED SECURITIES $ 289,226 FHLMC Gold Balloon #M90710 5.000% 03-01-07 $103.16 $ 298,391 4.8% 236,278 FHLMC Gold Balloon #M90724 5.500% 05-01-07 102.98 243,321 5.3% 604,567 FHLMC Gold Pool #M90767 4.500% 11-01-07 103.36 624,912 4.4% 939,808 FHLMC Gold Pool #M90796 4.000% 02-01-08 103.00 968,041 3.9% 726,334 FHLMC Gold Pool #M90802 4.000% 03-01-08 103.00 748,155 3.9% 301,689 FNMA Pool #254227 5.000% 02-01-09 103.16 311,236 4.8% U.S. GOVERNMENT AGENCIES $ 3,100,000 FHLMC 1.875% 01-15-05 $100.93 $ 3,129,004 1.9% 1,000,000 FHLMC 2.875% 09-26-05 100.43 1,004,358 2.9% 2,000,000 FHLMC 5.250% 01-15-06 108.92 2,178,484 4.8% 2,000,000 FNMA 3.000% 06-15-04 101.75 2,035,048 2.9% 1,000,000 FNMA 1.556% 07-15-04 100.04 1,000,480 1.6% 2,270,000 FNMA 3.500% 09-15-04 102.85 2,334,795 3.4% 2,500,000 FNMA 3.875% 03-15-05 104.43 2,610,977 3.7% 1,500,000 FNMA 2.875% 10-15-05 103.04 1,545,640 2.8% 1,070,000 FNMA 5.250% 06-15-06 109.88 1,175,818 4.8% 3,100,000 FHMA 1.750% 06-16-06 99.72 3,091,490 1.8% 750,000 FNMA 4.375% 10-15-06 107.83 808,728 4.1% 700,000 FNMA 5.125% 02-14-07 105.50 738,520 4.9% U.S. TREASURIES $ 1,150,000 U.S. Treasury Notes 3.625% 03-31-04 $102.00 $ 1,173,046 3.6% 3,800,000 U.S. Treasury Notes 6.750% 05-15-05 110.16 4,186,088 6.1% 1,000,000 U.S. Treasury Notes 4.625% 05-15-06 108.43 1,084,336 4.3% ----------- TOTAL INVESTMENTS (identified cost, $30,614,971) - 100.7% $31,290,868 Other Assets, Less Liabilities -- (0.7%) (211,985) ----------- Net Assets -- 100.0% $31,078,883 ============ FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association See notes to financial statements
Wright U.S. Government Near Term Fund (WNTB) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments, at value (identified cost of $30,614,971) (Note 1A) $ 31,290,868 Cash................................... 471 Receivable for fund shares sold........ 25,000 Receivable from investment adviser..... 9,698 Interest receivable.................... 235,283 Other assets........................... 2,372 ------------ Total assets.......................... $ 31,563,692 ------------ LIABILITIES: Payable for fund shares reacquired...... $ 14,997 Demand Note payable..................... 432,000 Distributions payable................... 23,335 Transfer agent fee payable.............. 5,204 Accrued expenses and other liabilities.. 9,273 ------------ Total liabilities..................... $ 484,809 ------------ NET ASSETS................................ $ 31,078,883 ============ 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................... $31,383,538 Accumulated undistributed net realized loss on investments (computed on the basis of identified cost)....................... (882,604) Unrealized appreciation on investments (computed on the basis of identified cost) 675,897 Distributions in excess of net investment income................................. (97,948) ------------ Net assets applicable to outstanding shares................................ $31,078,883 ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING. 2,975,602 ============== NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST.................. $ 10.44 ============== STATEMENT OF OPERATIONS Six Months Ended June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Interest income........................ $ 542,825 ------------ Expenses - Investment adviser fee (Note 3)........ $ 73,072 Administrator fee (Note 3)............. 14,615 Compensation of Trustees not employees of the investment adviser or administrator 4,802 Custodian fee (Note 1C)................ 25,056 Distribution expenses (Note 4)......... 40,583 Transfer and dividend disbursing agent fees 10,560 Shareholder Communications............. 3,775 Printing............................... 2,056 Audit services......................... 36,600 Legal services......................... 5,760 Registration costs..................... 7,729 Miscellaneous.......................... 3,361 ------------ Total expenses........................ $ 227,969 ------------ Deduct - Preliminary reduction of custodian fee (Note 1C)............................. $ (1,632) Preliminary allocation of expenses to the investment adviser (Note 3)........... (9,698) Preliminary reduction of investment adviser fee (Note 3).......................... (21,839) Preliminary reduction of distribution expenses by principal underwriter (Note 4)........ (40,583) ------------ Total deductions...................... $ (73,752) ------------ Net expenses.......................... $ 154,217 ------------ Net investment income............... $ 388,608 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 345,315 Change in unrealized appreciation (depreciation) of investments......................... (390,430) ------------ Net realized and unrealized loss of investments........................... $ (45,115) ------------ Net increase in net assets from operations $ 343,493 ============ See notes to financial statements WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB) - ------------------------------------------------------------------------------- Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31,2002 - ---------------------------------------------------------------------------------------------------------------------------------- (unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 388,608 $ 1,071,791 Net realized gain on investments........................................... 345,315 300,660 Change in unrealized appreciation (deprecation) on investments............. (390,430) 426,012 ------------ ------------ Net increase in net assets resulting from operations..................... $ 343,493 $ 1,798,463 ------------ ------------ Distributions to shareholders (Note 2) From net investment income................................................. $ (474,360) $ (1,163,783) ------------ ------------ Total distributions...................................................... $ (474,360) $ (1,163,783) ------------ ------------ Net increase (decrease) in net assets from fund share transactions (Note 5).. $ (2,629,714) $ (2,820,387) ------------ ------------ Net decrease in net assets............................................... $ (2,760,581) $ (2,185,707) NET ASSETS: At beginning of period....................................................... 33,839,464 36,025,171 ------------ ------------ At end of period............................................................. $ 31,078,883 $ 33,839,464 ============= ============= DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD............................................... $ (97,948) $ (12,196) ============= ============= See notes to financial statements
WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB) - ------------------------------------------------------------------------------- Six Months Ended Year Ended December 31, ----------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS June 30, 2003 2002 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- (Unaudited) Net asset value, beginning of period........ $ 10.490 $ 10.29 $ 10.080 $ 9.930 $ 10.270 $ 10.240 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income(1) ............... $ 0.123 $ 0.349 $ 0.480(7) $ 0.525 $ 0.534 $ 0.549 Net realized and unrealized gain (loss).. (0.021) 0.200 0.195(7) 0.143 (0.343) 0.048(+) -------- -------- -------- -------- -------- -------- Total income from investment operations $ 0.102 $ 0.549 $ 0.675 $ 0.668 $ 0.191 $ 0.597 -------- -------- -------- -------- -------- -------- Less distributions: Distributions from investment income... $ (0.152) $ (0.349) $ (0.465) $ (0.518) $ (0.531) $ (0.567) -------- -------- -------- -------- -------- -------- Total distributions.................... $ (0.152) $ (0.349) $ (0.465) $ (0.518) $ (0.531) $ (0.567) -------- -------- -------- -------- -------- -------- Net asset value, end of period.............. $ 10.440 $ 10.490 $ 10.290 $ 10.080 $ 9.930 $ 10.270 ========= ========= ========= ========= ========= ======== Total return(2) ............................ 0.98% 5.42% 6.82% 6.94% 1.91% 5.98% Ratios/Supplemental Data(1): Net assets, end of period (000 omitted).. $ 31,079 $ 33,839 $ 36,025 $ 39,198 $ 52,825 $ 91,922 Ratio of net expenses to average net assets 0.96%(8) 0.97%(3) 0.97%(3) 0.98%(3) 0.91%(3) 0.88%(3) Ratio of net expenses after custodian fee reduction to average net assets(4) .. 0.95%(6)(8) 0.95%(3)(6) 0.95%(3)(6) 0.95%(3)(6) 0.90%(3) 0.87%(3) Ratio of net investment income to average net assets............................ 2.39%(8) 3.10% 4.40% 5.27% 5.27% 5.38% Portfolio turnover rate ................ 58% 64% 92%(5) 65%(5) 0%(5) 10%(5) - ----------------------------------------------------------------------------------------------------------------------------------- (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: 2003 2002 2001 2000 1999 1998 -------------------------------------------------------------------------- Net investment income per share........ $ 0.098 $ 0.323 $ 0.452 $ 0.511 $ 0.526 $ 0.546 ========= ========= ========= ========= ========= ========= Ratios (As a percentage of average net assets): Expenses ............................ 1.40%(8) 1.20%(3) 1.22%(3) 1.13%(3) 0.99%(3) 0.91%(3) ========= ========= ========= ========= ========= ========= Expenses after custodian fee reduction(4) 1.39%(8) 1.18%(3) 1.20%(3) 1.10%(3) 0.98%(3) 0.90%(3) ========= ========= ========= ========= ========= ========= Net investment income................ 1.95%(8) 2.87% 4.15% 5.13% 5.19% 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)Includes each fund's share of its corresponding portfolio's allocated expenses. (4)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. (5)Represents portfolio turnover rate of the fund's corresponding portfolio. (6)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% after custodian fee credits are applied. (7)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. (8)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 WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND (WUSGI) - ------------------------------------------------------------------------------- Portfolio of Investments - June 30, 2003 (unaudited) Face Coupon Maturity Market Current Amount Description Rate Date Price Value Yield - ---------------------------------------------------------------------------------------------------------------------------------- MORTAGE-BACKED SECURITIES $ 47,256 FHLMC Gold Pool #M90724 5.500% 05-01-07 $102.98 $ 48,664 5.3% 604,567 FHLMC Gold Pool #M90767 4.500% 11-01-07 103.36 624,912 4.4% 242,111 FHLMC Gold Pool #M90802 4.000% 03-01-08 103.00 249,385 3.9% 150,844 FNMA Pool #254227 5.000% 02-01-09 103.16 155,618 4.8% 325,599 FNMA Pool #254546 5.500% 12-01-17 103.91 338,336 5.3% 243,383 FNMA Pool #663689 5.000% 01-01-18 103.45 251,790 4.8% U.S. GOVERNMENT AGENCIES $ 1,200,000 FHLB 3.625% 10-15-04 $103.11 $ 1,237,415 3.5% 200,000 FHLMC 1.875% 01-15-05 100.93 201,871 1.9% 400,000 FHLMC 2.875% 09-26-05 100.43 401,743 2.9% 550,000 FHLMC 5.125% 07-15-12 110.52 607,895 4.6% 320,000 FHLMC 4.000% 06-12-13 98.38 314,820 4.1% 750,000 FNMA 3.000% 06-15-04 101.75 763,143 2.9% 1,350,000 FNMA 3.875% 03-15-05 104.43 1,409,928 3.7% 1,250,000 FNMA 2.875% 10-15-05 103.04 1,288,034 2.8% 1,500,000 FNMA 1.750% 06-16-06 99.72 1,495,882 1.8% 1,180,000 FNMA 2.875% 05-19-08 100.44 1,185,204 2.9% 250,000 FNMA 5.375% 11-15-11 112.66 281,663 4.8% 175,000 FNMA 4.375% 09-15-12 104.86 183,512 4.2% U.S. TREASURIES $ 1,600,000 U.S. Treasury Notes 6.750% 05-15-05 $110.16 $ 1,762,563 6.1% 200,000 U.S. Treasury Notes 4.625% 05-15-06 108.43 216,867 4.3% 1,500,000 U.S. Treasury Notes 3.000% 11-15-07 103.17 1,547,696 2.9% 1,150,000 U.S. Treasury Notes 5.000% 08-15-11 112.20 1,290,337 4.5% ----------- Total Investments (identified cost, $15,490,631) - 97.6% $15,857,278 Other Assets, less Liabilities - 2.4% 382,172 ----------- Net Assets - 100.0% $16,239,450 ============ FHLB - Federal Home Loan Bank FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association
See notes to financial statements WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND (WUSGI) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments, at value (identified cost of $15,490,631) (Note 1A) $ 15,857,278 Cash.................................... 280,614 Receivable from investment adviser...... 16,801 Interest receivable..................... 109,374 Other assets............................ 2,460 ------------ Total assets.......................... $ 16,266,527 ------------ LIABILITIES: Payable for fund shares reacquired...... $ 230 Distributions payable................... 12,009 Transfer agent fee payable.............. 3,802 Accrued expenses and other liabilities.. 11,036 ------------ Total liabilities..................... $ 27,077 ------------ NET ASSETS................................ $ 16,239,450 ============ 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................... $15,691,709 Accumulated undistributed net realized loss on investments (computed on the basis of identified cost....................... 384,548 Unrealized appreciation on investments (computed on the basis of identified cost) 366,647 Distributions in excess of net investment income................................ (203,454) ------------ Net assets applicable to outstanding shares $16,239,450 ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 1,170,153 ============ NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $ 13.88 ============ STATEMENT OF OPERATIONS Six Months Ended June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Interest income ....................... $ 115,316 ------------ Expenses - Investment adviser fee (Note 3)........ $ 35,531 Administration fee (Note 3)............ 7,106 Compensation of Trustees not employees of the investment adviser or administrator 4,800 Custodian fee (Note 1C)................ 21,780 Distribution expenses (Note 4)......... 19,742 Transfer and dividend disbursing agent fees 8,895 Shareholder Communications............. 1,916 Printing............................... 1,527 Audit services......................... 33,750 Legal services......................... 2,692 Registration costs..................... 8,316 Miscellaneous.......................... 1,876 ------------ Total expenses........................ $ 147,931 ------------ Deduct - Preliminary reduction of custodian fee (Note 1C)............................. $ (829) Preliminary allocation of expenses to investment adviser (Note 3)........... (16,801) Preliminary reduction of investment adviser fee (Note 3).............................. (35,531) Preliminary reduction of distribution expenses by principal underwriter (Note 4)........ (19,742) ------------ Total deductions...................... $ (72,903) ------------ Net expenses.......................... $ 75,028 ------------ Net investment income............... $ 40,288 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 670,987 Change in unrealized appreciation (depreciation) of investments......................... (337,163) ------------ Net realized and unrealized gain of investments........................... $ 333,824 ------------ Net increase in net assets from operations $ 374,112 ============ See notes to financial statements WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND (WUSGI) - ------------------------------------------------------------------------------- Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31, 2002 - --------------------------------------------------------------------------------------------------------------------------------- (unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 40,288 $ 433,981 Net realized gain on investments........................................... 670,987 478,964 Change in unrealized appreciation (depreciation) on investments............ (337,163) (78,322) ------------ ------------ Net increase in net assets resulting from operations..................... $ 374,112 $ 834,623 ------------ ------------ Distributions to shareholders (Note 2) - From net investment income................................................. $ (275,981) $ (474,533) From net realized gain..................................................... -- (336,443) ------------ ------------ Total distributions...................................................... $ (275,981) $ (810,976) ------------ ------------ Net increase (decrease) in net assets from fund share transactions (Note 5).. $ 625,922 $ 5,322,697 ------------ ------------ Net increase in net assets............................................... $ 724,053 $ 5,346,344 NET ASSETS: At beginning of period....................................................... 15,515,397 10,169,053 ------------ ------------ At end of period............................................................. $ 16,239,450 $ 15,515,397 ============= ============= UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD............................................... $ (203,454) $ 32,239 ============= =============
See notes to financial statements WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND (WUSGI) - ------------------------------------------------------------------------------- Six Months Ended Year Ended December 31, ------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS June 30, 2003 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ (Unaudited) Net asset value, beginning of period........ $ 13.790 $ 13.630 $ 13.750 $ 12.890 $ 14.400 $ 13.950 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income(1) ................ $ 0.037 $ 0.575 $ 0.651(7) $ 0.737 $ 0.722 $ 0.724 Net realized and unrealized gain (loss).. 0.292 0.496 0.006(7) 0.842 (1.282) 0.632 -------- -------- -------- -------- -------- -------- Total income (loss) from investment operations............. $ 0.329 $ 1.071 $ 0.657 $ 1.579 $ (0.560) $ 1.356 -------- -------- -------- -------- -------- -------- Less distributions: Distributions from investment income..... $ (0.239) $ (0.605) $ (0.701) $ (0.719) $ (0.716) $ (0.741) Distributions from capital gains......... - (0.306) (0.076) - (0.234) (0.165) -------- -------- -------- -------- -------- -------- Total distributions.................... $ (0.239) $ (0.911) $ (0.777) $ (0.719) $ (0.950) $ (0.906) -------- -------- -------- -------- -------- -------- Net asset value, end of period.............. $ 13.880 $ 13.790 $ 13.630 $ 13.750 $ 12.890 $ 14.400 ========= ========= ========= ========= ========= ========= Total return(2) ............................ 2.41% 8.07% 5.40% 12.61% (3.97%) 9.95% Ratios/Supplemental Data(1): Net assets, end of period (000 omitted).. $ 16,239 $ 15,515 $ 10,169 $ 16,498 $ 31,192 $ 67,256 Ratio of net expenses to average net assets 0.96%(8) 1.01%(3) 1.02%(3) 0.97%(3) 0.92%(3) 0.94%(3) Ratio of net expenses after custodian fee reduction to average net assets(4) . 0.95%(8) 0.95%(3)(6) 0.95%(3)(6) 0.95%(3)(6) 0.90%(3) 0.90%(3) Ratio of net investment income to average net assets............... 0.51%(8) 3.95% 5.11% 5.55% 5.26% 5.09% Portfolio turnover rate ................ 74% 98%(5) 27%(5) 74%(5) 0%(5) 7%(5) - --------------------------------------------------------------------------------------------------------------------------------- (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: 2003 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------- Net investment income per share............. $ (0.027) $ 0.477 $ 0.547 $ 0.700 $ 0.703 $ 0.721 ========= ========= ========= ========= ========= ========= Ratios (as a percentage of average net assets): Expenses ................................ 1.87%(8) 1.62%(3) 1.84%(3) 1.26%(3) 1.06%(3) 0.96%(3) ========= ========= ========= ========= ========= ========= Expenses after custodian fee reduction(4) 1.86%(8) 1.56%(3) 1.77%(3) 1.24%(3) 1.04%(3) 0.92%(3) ========= ========= ========= ========= ========= ========= Net investment income.................... (0.40%)(8) 3.28% 4.29% 5.27% 5.12% 5.07% ========= ========= ========= ========= ========= ========= - ------------------------------------------------------------------------------------------------------------------------------ (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)Includes each fund's share of its corresponding portfolio's allocated expenses. (4)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. (5)Represents portfolio turnover rate at the fund's corresponding portfolio. (6)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% after custodian fee credits are applied. (7)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). (8)Annualized.
See notes to financial statements WRIGHT TOTAL RETURN BOND FUND (WTRB) - ------------------------------------------------------------------------------ PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited) Face Coupon Maturity Market Current Amount Description Rate Date Price Value Yield - ---------------------------------------------------------------------------------------------------------------------------------- ASSET-BACKED SECURITIES - ------------------------- $ 700,000 Citibank Credit Card Master Trust 6.900% 10-15-07 $111.31 $ 779,191 6.2% 935,000 MBNA Master Credit Card Tr., Ser. 2000-AA 7.350% 07-16-07 109.46 1,023,540 6.7% ------------ Total Asset-Backed Securities (identified cost, $1,634,361) - 4.3% $ 1,802,731 ------------ CORPORATE BONDS - ---------------- AUTO $ 160,000 DaimlerChrysler North American Holding Co. 7.200% 09-01-09 $113.81 $ 182,099 6.3% 170,000 General Motors Corp. 8.800% 03-01-21 103.67 176,248 8.5% BLDG-RESIDENTIAL/COMMER $ 150,000 Centex Corp. 7.875% 02-01-11 $121.14 $ 181,719 6.5% CABLE TV $ 145,000 A T & T Broadband Corp. 8.375% 03-15-13 $125.62 $ 181,980 6.7% 155,000 Cox Communications, Inc. 7.125% 10-01-12 119.62 185,415 6.0% ELECTRIC-INTEGRATED $ 180,000 American Electric Power Co., Inc. 6.125% 05-15-06 $109.70 $ 197,464 5.6% 165,000 Dominion Resources, Inc. 6.300% 03-15-33 106.04 174,973 5.9% 435,000 PPL Electric Utilities 5.875% 08-15-07 110.47 480,546 5.3% 155,000 Progress Energy, Inc. 7.100% 03-01-11 116.54 180,640 6.1% BANKS $ 500,000 Bank of New York Co., Inc. 6.375% 04-01-12 $116.32 $ 581,625 5.5% 600,000 Bank One Corp., Note 2.625% 06-30-08 98.42 590,561 2.7% 285,000 Royal Bank of Scotland 7.648% 08-31-49 127.39 363,071 6.0% DIVERSIFIED FINANCIALS $ 300,000 Boeing Capital Corp., Senior Note 7.375% 09-27-10 $118.66 $ 355,995 6.2% 340,000 CIT Group Holdings, Inc. 6.875% 11-01-09 113.58 386,176 6.1% 315,000 Ford Motor Credit Co. 7.375% 10-28-09 104.98 330,718 7.0% 440,000 General Elec Cap Corp. 6.125% 02-22-11 114.20 502,507 5.4% 550,000 Household Finance Corp. 8.000% 07-15-10 124.22 683,244 6.4% 500,000 International Lease Finance Corp. 5.125% 08-01-04 103.73 518,685 4.9% 500,000 Lehman Brothers Holdings, Inc. 7.750% 01-15-05 109.81 549,095 7.1% 540,000 Wells Fargo & Co. 4.800% 07-29-05 106.53 575,299 4.5% FOOD-RETAIL $ 155,000 Albertson's, Inc. 7.500% 02-15-11 $116.99 $ 181,350 6.4% 170,000 Safeway, Inc., Note 5.800% 08-15-12 107.42 182,618 5.4% INSTRUMENTS-CONTROLS $ 500,000 Honeywell International, Inc. 7.000% 03-15-07 $114.31 $ 571,580 6.1% MEDICAL-HMO $ 430,000 UnitedHealth Group, Inc. 5.200% 01-17-07 $108.99 $ 468,690 4.8% MULTIMEDIA $ 160,000 AOL Time Warner, Inc., Note 7.625% 04-15-31 $115.84 $ 185,351 6.6% OIL & GAS $ 360,000 Conoco, Inc. 6.350% 04-15-09 $117.02 $ 421,299 5.4% 350,000 ConocoPhilips 6.375% 03-30-09 116.65 408,295 5.5% 165,000 Repsol International Finance 7.450% 07-15-05 110.09 181,659 6.8% 145,000 Transocean Sedco Forex 7.500% 04-15-31 123.55 179,152 6.1% PAPER & RELATED PRODUCTS $ 160,000 Meadwestvaco Corp. 6.850% 04-01-12 $115.63 $ 185,008 5.9% PIPELINES $ 165,000 Duke Capital Corp., Senior Note 7.500% 10-01-09 114.54 $ 189,007 6.5% PROPERTY/CASUALTY INS. $ 170,000 Fund American Cos., Inc., Guar. Senior Note 5.875% 05-15-13 $104.75 $ 178,090 5.6% TELECOM $ 550,000 Ameritech Capital Corp. 6.150% 01-15-08 $113.50 $ 624,266 5.4% 155,000 AT & T Wireless 7.875% 03-01-11 118.31 183,383 6.7% 485,000 BellSouth Telecommunications, Inc. 6.375% 06-15-04 104.72 507,895 6.1% 130,000 British Telecom Plc 8.875% 12-15-30 136.96 178,054 6.5% 145,000 Deutsche Telekom International Finance 8.500% 06-15-10 123.03 178,406 6.9% 145,000 France Telecom SA 9.250% 03-01-11 126.07 182,810 7.3% 180,000 Sprint Capital Corp. 6.125% 11-15-08 108.68 195,628 5.6% 290,000 Verizon Global Funding Corp. 7.750% 12-01-30 127.14 368,707 6.1% ---------- Total Corporate Bonds (identified cost, $12,307,384) - 31.6% $13,129,308 ---------- GOVERNMENT INTERESTS - ----------------------- MORTGAGE-BACKED SECURITIES $ 298,712 FHLMC Pool #27663 7.000% 06-01-29 $104.92 $ 313,419 6.7% 181,748 FHLMC Pool #E00903 7.000% 10-01-15 106.25 193,124 6.6% 206,466 FNMA Pool #479477 6.000% 01-01-29 104.14 215,014 5.8% 170,423 FNMA Pool #489357 6.500% 03-01-29 104.42 177,962 6.2% 197,671 FNMA Pool #535332 8.500% 04-01-30 107.76 213,017 7.9% 737,694 FNMA Pool #545407 5.500% 01-01-32 103.56 763,962 5.3% 422,279 FNMA Pool #597396 6.500% 09-01-31 104.31 440,496 6.2% 256,569 FNMA Pool #634823 6.500% 03-01-32 104.31 267,639 6.2% 730,150 FNMA Pool #663689 5.000% 01-01-18 103.45 755,371 4.8% 298,455 GNMA II Pool #2671 6.000% 11-20-28 104.40 311,615 5.7% 66,956 GNMA II Pool #2909 8.000% 04-20-30 106.95 71,616 7.5% 228,033 GNMA II Pool #2972 7.500% 09-20-30 105.69 241,015 7.1% 81,788 GNMA II Pool #2973 8.000% 09-20-30 106.95 87,480 7.5% 1,061,949 GNMA Pool #374892 7.000% 02-15-24 106.33 1,129,174 6.6% 209,889 GNMA Pool #376400 6.500% 02-15-24 105.60 221,657 6.2% 301,321 GNMA Pool #379982 7.000% 02-15-24 106.33 320,396 6.6% 457,678 GNMA Pool #410081 8.000% 08-15-25 108.49 $ 496,579 7.4% 241,695 GNMA Pool #427199 7.000% 12-15-27 105.88 255,931 6.6% 145,888 GNMA Pool #436214 6.500% 02-15-13 106.32 155,120 6.1% 166,815 GNMA Pool #442996 6.000% 06-15-13 105.40 175,825 5.7% 359,132 GNMA Pool #448490 7.500% 03-15-27 106.45 382,303 7.0% 639,540 GNMA Pool #458762 6.500% 01-15-28 105.19 672,743 6.2% 462,456 GNMA Pool #460726 6.500% 12-15-27 105.23 486,660 6.2% 348,623 GNMA Pool #463839 6.000% 05-15-13 105.40 367,454 5.7% 385,837 GNMA Pool #478072 6.500% 05-15-28 105.19 405,868 6.2% 194,156 GNMA Pool #488924 6.500% 11-15-28 105.19 204,236 6.2% 114,501 GNMA Pool #510706 8.000% 11-15-29 107.99 123,652 7.4% U.S. GOVERNMENT AGENCIES $ 500,000 FHLB 5.125% 03-06-06 $108.94 $ 544,701 4.7% 530,000 FHLB 5.800% 09-02-08 115.14 610,267 5.0% 425,000 FHLMC 4.000% 06-12-13 98.38 418,121 4.1% 1,000,000 FNMA 3.000% 06-15-04 101.75 1,017,524 2.9% 1,005,000 FNMA 1.750% 06-16-06 99.72 1,002,241 1.8% 1,040,000 FNMA 2.875% 05-19-08 100.44 1,044,586 2.9% 420,000 FNMA 6.250% 05-15-29 117.51 493,580 5.3% 955,000 Tennessee Valley Authority 6.000% 03-15-13 117.08 1,118,145 5.1% 300,000 Tennessee Valley Authority - Series E 6.250% 12-15-17 119.86 359,590 5.2% U.S. TREASURIES $ 745,000 U.S. Treasury Bonds 7.250% 05-15-16 $133.02 $ 991,025 5.5% 330,000 U.S. Treasury Bonds 6.125% 11-15-27 121.75 401,801 5.0% 2,600,000 U.S. Treasury Notes 3.625% 03-31-04 102.00 2,652,104 3.6% 1,110,000 U.S. Treasury Notes 4.625% 05-15-06 108.43 1,203,613 4.3% 2,520,000 U.S. Treasury Notes 3.000% 11-15-07 103.17 2,600,128 2.9% 1,950,000 U.S. Treasury Notes 5.000% 08-15-11 112.20 2,187,962 4.5% ----------- Total Government Interests (identified cost, $25,064,126) - 62.9% $26,094,716 ----------- Total Investments (identified cost, $39,005,871) - 98.8% $41,026,755 Other assets, Less liabilities - 1.2% 489,057 ----------- Net Assets -- 100.0% $41,515,812 ============
FHLB - Federal Home Loan Bank FHLMC - Federal Home Loan Mortgage Corporation FNMA - Federal National Mortgage Association GNMA - Government National Mortgage Association See notes to financial statements WRIGHT TOTAL RETURN BOND FUND (WTRB) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments at value (identified cost, $39,005,871) (Note 1A) $ 41,026,755 Cash.................................... 92,402 Receivable for fund shares issued....... 41,669 Receivable from investment adviser...... 14,455 Interest receivable..................... 416,092 Other assets............................ 3,174 ------------ Total assets.......................... $ 41,594,547 ------------ LIABILITIES: Payable for fund shares reacquired...... $ 30,463 Distributions payable................... 29,622 Transfer agent fee payable.............. 5,500 Accrued expenses and other liabilities.. 13,150 ------------ Total liabilities..................... $ 78,735 ------------ NET ASSETS................................ $ 41,515,812 ============ 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................... $ 41,663,726 Accumulated undistributed net realized loss on investments (computed on the basis of identified cost).................... (2,080,598) Unrealized appreciation on investments (computed on the basis of identified cost) 2,020,884 Distributions in excess of net investment income................................. (88,200) ------------ Net assets applicable to outstanding shares................................ $ 41,515,812 ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING............................. 3,140,760 ============== NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST..................... $ 13.22 ============== STATEMENT OF OPERATIONS Six Months Ended June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Interest income........................ $ 999,053 ------------ Expenses - Investment adviser fee (Note 3)........ $ 89,323 Administrator fee (Note 3)............. 13,895 Compensation of Trustees not employees of the investment adviser or administrator 4,800 Custodian fee (Note 1C)................ 31,456 Distribution expenses (Note 4)......... 49,624 Transfer and dividend disbursing agent fees 9,702 Shareholder Communications............. 4,364 Printing............................... 1,916 Audit services......................... 31,900 Legal services......................... 4,229 Registration costs..................... 8,204 Miscellaneous.......................... 6,234 ------------ Total expenses........................ $ 255,647 ------------ Deduct - Preliminary reduction of custodian fee (Note 1C)......................... $ (2,924) Preliminary allocation of expenses to the investment adviser (Note 3)........... (14,455) Preliminary reduction of distribution expenses by principal underwriter (Note 4)........ (49,624) ------------ Total deductions...................... $ (67,003) ------------ Net expenses.......................... $ 188,644 ------------ Net investment income............... $ 810,409 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 1,200,613 Change in unrealized appreciation (depreciation) of investments......................... (478,636) ------------ Net realized and unrealized gain of investments........................... $ 721,977 ------------ Net increase in net assets from operations $ 1,532,386 ============ See notes to financial statements WRIGHT TOTAL RETURN BOND FUND (WTRB) - ------------------------------------------------------------------------------- Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31, 2002 - -------------------------------------------------------------------------------------------------------------------------------- (unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 810,409 $ 2,302,609 Net realized gain on investments........................................... 1,200,613 509,400 Change in unrealized appreciation (depreciation) of investments............ (478,636) 1,129,199 ------------ ------------ Net increase in net assets resulting from operations..................... $ 1,532,386 $ 3,941,208 ------------ ------------ Distributions to shareholders (Note 2) From net investment income................................................. $ (888,936) $(2,378,235) ------------ ------------ Total distributions...................................................... $ (888,936) $(2,378,235) ------------ ------------ Net increase (decrease) in net assets from fund share transactions (Note 5).. $ 1,468,781 $(12,779,874) ------------ ------------ Net increase (decrease) in net assets.................................... $ 2,112,231 $(11,216,901) NET ASSETS: At beginning of period....................................................... 39,403,581 50,620,482 ------------ ------------ At end of period............................................................. $ 41,515,812 $ 39,403,581 ============= ============= DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ (88,200) $ (9,673) ============= =============
See notes to financial statements WRIGHT TOTAL RETURN BOND FUND (WTRB) - ------------------------------------------------------------------------------ Six Months Ended Year Ended December 31, ------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS June 30, 2003 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ (Unaudited) Net asset value, beginning of period........ $ 13.010 $ 12.550 $ 12.630 $ 12.100 $ 13.310 $ 12.930 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income(1) ................ $ 0.267 $ 0.639 $ 0.709(4) $ 0.712 0.679 $ 0.680 Net realized and unrealized gain (loss).. 0.235 0.461 (0.090)(4) 0.530 (1.190) 0.524 -------- -------- ---------- -------- -------- -------- Total income (loss) from investment operations .......................... $ 0.502 $ 1.100 $ 0.619 $ 1.242 $ (0.511) $ 1.204 -------- -------- ----------- -------- -------- -------- Less distributions: Distributions from investment income..... $ (0.292) $ (0.640) $ (0.699) $ (0.712) $ (0.680) $ (0.690) Distributions from capital gains......... - -- - - (0.019) (0.134) -------- -------- -------- -------- ---------- -------- Total distributions.................... $ (0.292) $ (0.640) $ (0.699) $ (0.712) $ (0.699) $ (0.824) -------- -------- -------- -------- ---------- -------- Net asset value, end of period.............. $ 13.220 $ 13.010 $ 12.550 $ 12.630 $ 12.100 $ 13.310 ========= ========= ========= ========= ========= ========= Total return(2) ............................ 3.89% 9.03% 4.96% 10.62% (3.91%) 9.56% Ratios/Supplemental Data(1): Net assets, end of period (000 omitted).. $ 41,516 $ 39,404 $ 50,620 $ 65,775 $ 87,336 $115,937 Ratio of net expenses to average net assets 0.96%(6) 0.96% 0.96% 0.96% 0.90% 0.90% Ratio of net expenses after custodian fee reduction to average net assets(3) .... 0.95%(6) 0.95%(5) 0.95%(5) 0.95%(5) 0.90% 0.90% Ratio of net investment income to average net assets............................ 4.08%(6) 4.92% 5.44% 5.84% 5.36% 5.18% Portfolio turnover rate.................. 50% 68% 38% 61% 31% 26% - -------------------------------------------------------------------------------------------------------------------------------- (1)For the six months ended June 30, 2003 and for the years ended December 31, 2002, 2001 and 1999, the operating expenses of the fund were reduced by an allocation of expenses to the investment adviser, and/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: 2003 2002 2001 1999 -------------------------------------------------------------- Net investment income per share.......... $ 0.244 $ 0.621 $ 0.701 $ 0.678 ========== ========== ========== ========== Ratios (As a percentage of average net assets): Expenses............................... 1.28%(6) 1.09% 1.02% 0.91% ========== ========== ========== ========== Expenses after custodian fee reduction(3) 1.27%(6) 1.08% 1.01% 0.91% ========== ========== ========== ========== Net investment income.................. 3.76%(6) 4.78% 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% after custodian fee credits are applied. (6)Annualized.
See notes to financial statements WRIGHT CURRENT INCOME FUND (WCIF) - ------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited) Face Coupon Maturity Market Current Amount Description Rate Date Price Value Yield - --------------------------------------------------------------------------------------------------------------------------------- (unaudited) MORTGAGE-BACKED SECURITIES - 95.1% $ 404,141 FHLMC Pool #27663 7.000% 06-01-29 $104.92 $ 424,039 6.7% 1,465,193 FNMA Pool #254546 5.500% 12-01-17 103.91 1,522,510 5.3% 537,053 FNMA Pool #535131 6.000% 03-01-29 104.14 559,287 5.8% 1,768,107 FNMA Pool #673315 5.500% 11-01-32 103.56 1,831,123 5.3% 1,083,273 FNMA Pool #696828 5.000% 04-01-18 103.45 1,120,691 4.8% 232,683 GNMA II Pool #1268 8.000% 07-20-23 107.97 251,247 7.4% 13,316 GNMA II Pool #1596 9.000% 04-20-21 111.21 14,810 8.1% 104,891 GNMA II Pool #1788 7.000% 07-20-24 105.89 111,069 6.6% 110,028 GNMA II Pool #2218 7.500% 05-20-26 106.14 116,794 7.1% 311,504 GNMA II Pool #2268 7.500% 08-20-26 106.14 330,660 7.1% 57,495 GNMA II Pool #2855 8.500% 12-20-29 107.16 61,617 7.9% 847,114 GNMA II Pool #3228 6.500% 04-20-32 104.50 885,262 6.2% 1,724,679 GNMA II Pool #3259 5.500% 07-20-32 103.92 1,792,358 5.3% 2,293,379 GNMA II Pool #3284 5.500% 09-20-32 103.92 2,383,375 5.3% 197,657 GNMA II Pool #545 7.500% 12-20-22 106.52 210,553 7.0% 211,952 GNMA II Pool #723 7.500% 01-20-23 106.46 225,648 7.0% 40 GNMA Pool #003026 8.000% 01-15-04 102.97 41 7.8% 17 GNMA Pool #003331 8.000% 01-15-04 102.97 18 7.8% 185 GNMA Pool #004183 8.000% 07-15-04 102.97 190 7.8% 214 GNMA Pool #004433 9.000% 11-15-04 103.72 222 8.7% 534 GNMA Pool #005466 8.500% 03-15-05 105.03 561 8.1% 36 GNMA Pool #005561 8.500% 04-15-05 105.03 38 8.1% 134 GNMA Pool #005687 7.250% 02-15-05 103.28 139 7.0% 225 GNMA Pool #005910 7.250% 02-15-05 103.28 232 7.0% 2,200 GNMA Pool #007003 8.000% 07-15-05 104.60 2,301 7.6% 40 GNMA Pool #007319 6.500% 10-15-04 101.64 40 6.4% 933 GNMA Pool #009106 8.250% 05-15-06 106.29 992 7.8% 1,149 GNMA Pool #009889 7.250% 02-15-06 104.08 1,196 7.0% 122 GNMA Pool #011191 7.250% 04-15-06 104.08 127 7.0% 853 GNMA Pool #012526 8.000% 11-15-06 105.86 903 7.6% 25,223 GNMA Pool #151443 10.000% 03-15-16 115.41 29,111 8.7% 5,288 GNMA Pool #153564 10.000% 04-15-16 115.41 6,104 8.7% 14,320 GNMA Pool #172558 9.500% 08-15-16 112.63 16,129 8.4% 42,554 GNMA Pool #176992 8.000% 11-15-16 109.36 46,537 7.3% 4,511 GNMA Pool #177784 8.000% 10-15-16 109.36 4,933 7.3% 4,315 GNMA Pool #188060 9.500% 10-15-16 112.63 4,860 8.4% 432 GNMA Pool #190959 8.500% 02-15-17 109.90 475 7.7% 14,481 GNMA Pool #192357 8.000% 04-15-17 109.38 15,840 7.3% 42,365 GNMA Pool #194057 8.500% 04-15-17 109.90 46,562 7.7% 14,171 GNMA Pool #194287 9.500% 03-15-17 112.71 15,973 8.4% 111,882 GNMA Pool #194926 8.500% 02-15-17 109.90 122,964 7.7% 3,751 GNMA Pool #196063 8.500% 03-15-17 109.90 4,123 7.7% $ 34,593 GNMA Pool #203369 8.000% 12-15-16 $109.36 $ 37,832 7.3% 13,957 GNMA Pool #206740 10.000% 10-15-17 115.56 16,129 8.7% 48,783 GNMA Pool #206762 9.000% 04-15-21 111.57 54,430 8.1% 21,609 GNMA Pool #207019 8.000% 03-15-17 109.38 23,636 7.3% 5,235 GNMA Pool #208076 8.000% 04-15-17 109.38 5,726 7.3% 4,822 GNMA Pool #210520 10.500% 08-15-17 116.45 5,615 9.0% 21,472 GNMA Pool #211013 9.000% 01-15-20 111.63 23,970 8.1% 17,665 GNMA Pool #211231 8.500% 05-15-17 109.90 19,415 7.7% 11,088 GNMA Pool #212601 8.500% 06-15-17 109.90 12,187 7.7% 49,191 GNMA Pool #219335 8.000% 05-15-17 109.38 53,806 7.3% 89,406 GNMA Pool #220703 8.000% 05-15-17 109.38 97,793 7.3% 9,577 GNMA Pool #220917 8.500% 04-15-17 109.90 10,525 7.7% 194,436 GNMA Pool #222112 8.000% 01-15-22 109.08 212,095 7.3% 22,802 GNMA Pool #223126 10.000% 08-15-17 115.56 26,350 8.7% 18,804 GNMA Pool #223133 9.500% 07-15-17 112.71 21,195 8.4% 10,672 GNMA Pool #223348 10.000% 08-15-18 115.60 12,338 8.7% 1,688 GNMA Pool #223588 10.000% 12-15-18 115.60 1,951 8.7% 4,490 GNMA Pool #224078 10.000% 07-15-18 115.60 5,190 8.7% 15,028 GNMA Pool #228308 10.000% 01-15-19 115.65 17,380 8.6% 5,466 GNMA Pool #228483 9.500% 09-15-19 112.82 6,167 8.4% 12,132 GNMA Pool #230223 9.500% 04-15-18 112.78 13,682 8.4% 14,853 GNMA Pool #245580 9.500% 07-15-18 112.78 16,752 8.4% 5,922 GNMA Pool #247473 10.000% 09-15-18 111.26 6,589 9.0% 28,055 GNMA Pool #247681 9.000% 11-15-19 111.64 31,323 8.1% 5,931 GNMA Pool #247872 10.000% 09-15-18 115.60 6,856 8.7% 5,237 GNMA Pool #250412 8.000% 03-15-18 109.33 5,726 7.3% 7,689 GNMA Pool #251241 9.500% 06-15-18 112.78 8,671 8.4% 14,591 GNMA Pool #258911 9.500% 09-15-18 112.78 16,456 8.4% 16,014 GNMA Pool #260999 9.500% 09-15-18 112.78 18,061 8.4% 9,942 GNMA Pool #263439 10.000% 02-15-19 115.65 11,498 8.6% 6,265 GNMA Pool #265267 9.500% 08-15-20 112.87 7,071 8.4% 8,025 GNMA Pool #266983 10.000% 02-15-19 115.65 9,281 8.6% 3,720 GNMA Pool #273690 9.500% 08-15-19 112.82 4,198 8.4% 7,369 GNMA Pool #274489 9.500% 12-15-19 112.82 8,314 8.4% 2,430 GNMA Pool #275456 9.500% 08-15-19 112.82 2,741 8.4% 6,347 GNMA Pool #277205 9.000% 12-15-19 111.64 7,087 8.1% 28,843 GNMA Pool #285744 9.000% 05-15-20 111.63 32,199 8.1% 19,791 GNMA Pool #286556 9.000% 03-15-20 111.63 22,094 8.1% 7,926 GNMA Pool #289092 9.000% 04-15-20 111.63 8,848 8.1% 274 GNMA Pool #294209 9.000% 07-15-21 111.57 306 8.1% 13,459 GNMA Pool #301366 8.500% 06-15-21 109.60 14,752 7.8% 7,311 GNMA Pool #302713 9.000% 02-15-21 110.68 8,092 8.1% 2,649 GNMA Pool #302723 8.500% 05-15-21 109.60 2,904 7.8% 14,274 GNMA Pool #302933 8.500% 06-15-21 109.60 15,645 7.8% $ 40,529 GNMA Pool #304512 8.500% 05-15-21 $109.60 $ 44,421 7.8% 62,953 GNMA Pool #305091 9.000% 07-15-21 111.57 70,240 8.1% 12,332 GNMA Pool #306693 8.500% 09-15-21 109.60 13,516 7.8% 12,503 GNMA Pool #308792 9.000% 07-15-21 111.57 13,951 8.1% 12,810 GNMA Pool #311087 8.500% 07-15-21 109.60 14,041 7.8% 5,813 GNMA Pool #314222 8.500% 04-15-22 109.52 6,367 7.8% 37,290 GNMA Pool #315187 8.000% 06-15-22 109.08 40,677 7.3% 162,705 GNMA Pool #315388 8.000% 02-15-22 109.08 177,482 7.3% 17,272 GNMA Pool #315754 8.000% 01-15-22 109.08 18,840 7.3% 46,649 GNMA Pool #316240 8.000% 01-15-22 109.08 50,885 7.3% 55,102 GNMA Pool #317351 8.000% 05-15-22 109.08 60,106 7.3% 80,489 GNMA Pool #319441 8.500% 04-15-22 109.52 88,153 7.8% 26,170 GNMA Pool #321806 8.000% 05-15-22 109.08 28,547 7.3% 98,684 GNMA Pool #321807 8.000% 05-15-22 109.08 107,647 7.3% 49,373 GNMA Pool #321976 8.500% 01-15-22 109.52 54,074 7.8% 112,312 GNMA Pool #323226 8.000% 06-15-22 109.08 122,513 7.3% 146,939 GNMA Pool #323929 8.000% 02-15-22 109.08 160,285 7.3% 54,777 GNMA Pool #325165 8.000% 06-15-22 109.08 59,752 7.3% 46,451 GNMA Pool #325651 8.000% 06-15-22 109.08 50,670 7.3% 78,988 GNMA Pool #329540 7.500% 08-15-22 107.14 84,635 7.0% 333,108 GNMA Pool #329982 7.500% 02-15-23 107.08 356,716 7.0% 43,446 GNMA Pool #331361 8.000% 11-15-22 109.08 47,392 7.3% 38,128 GNMA Pool #335746 8.000% 10-15-22 109.08 41,591 7.3% 90,064 GNMA Pool #335950 8.000% 10-15-22 109.08 98,244 7.3% 193,831 GNMA Pool #348213 6.500% 08-15-23 105.67 204,830 6.2% 193,766 GNMA Pool #350659 7.500% 06-15-23 107.08 207,498 7.0% 484,605 GNMA Pool #350938 6.500% 08-15-23 105.67 512,104 6.2% 422,884 GNMA Pool #352001 6.500% 12-15-23 105.67 446,880 6.2% 221,050 GNMA Pool #352110 7.000% 08-15-23 106.39 235,177 6.6% 343,945 GNMA Pool #367806 6.500% 09-15-23 105.67 363,462 6.2% 410,210 GNMA Pool #368238 7.000% 12-15-23 106.39 436,426 6.6% 845,911 GNMA Pool #372050 6.500% 02-15-24 105.60 893,341 6.2% 98,242 GNMA Pool #372379 8.000% 10-15-26 108.43 106,530 7.4% 469,986 GNMA Pool #376218 7.500% 08-15-25 106.83 502,130 7.0% 102,358 GNMA Pool #394805 7.500% 02-15-26 106.77 109,292 7.0% 221,804 GNMA Pool #405558 7.500% 01-15-26 106.77 236,830 7.0% 465,565 GNMA Pool #410215 7.500% 12-15-25 106.83 497,406 7.0% 117,141 GNMA Pool #414736 7.500% 11-15-25 106.83 125,153 7.0% 110,208 GNMA Pool #417225 7.500% 01-15-26 106.77 117,674 7.0% 345,926 GNMA Pool #420707 7.000% 02-15-26 105.97 366,594 6.6% 149,860 GNMA Pool #421829 7.500% 04-15-26 106.77 160,013 7.0% 195,369 GNMA Pool #424173 7.500% 03-15-26 106.77 208,604 7.0% 48,207 GNMA Pool #431036 8.000% 07-15-26 108.43 52,274 7.4% 310,058 GNMA Pool #431612 8.000% 11-15-26 108.43 336,217 7.4% $ 112,855 GNMA Pool #442190 8.000% 12-15-26 $108.43 $ 122,376 7.4% 470,933 GNMA Pool #448490 7.500% 03-15-27 106.45 501,318 7.0% 345,056 GNMA Pool #449176 6.500% 07-15-28 105.19 362,970 6.2% 736,540 GNMA Pool #457100 6.500% 11-15-28 105.19 774,779 6.2% 959,310 GNMA Pool #458762 6.500% 01-15-28 105.19 1,009,114 6.2% 462,456 GNMA Pool #460726 6.500% 12-15-27 105.23 486,660 6.2% 310,237 GNMA Pool #462444 6.500% 12-15-27 105.23 326,474 6.2% 318,715 GNMA Pool #462623 6.500% 03-15-28 105.19 335,262 6.2% 269,515 GNMA Pool #469226 6.500% 03-15-28 105.19 283,507 6.2% 675,683 GNMA Pool #469615 6.500% 10-15-28 105.19 710,763 6.2% 2,996,493 GNMA Pool #471369 5.500% 05-15-33 104.37 3,127,590 5.3% 717,248 GNMA Pool #472028 6.500% 05-15-28 105.19 754,486 6.2% 603,276 GNMA Pool #480030 6.500% 06-15-28 105.19 634,596 6.2% 972,875 GNMA Pool #484195 6.500% 08-15-28 105.19 1,023,383 6.2% 1,776,620 GNMA Pool #486482 6.500% 09-15-28 105.19 1,868,857 6.2% 1,241,748 GNMA Pool #523002 6.500% 02-15-32 105.03 1,304,260 6.2% 561,802 GNMA Pool #538314 7.000% 02-15-32 105.65 593,561 6.6% 945,993 GNMA Pool #547605 6.500% 01-15-31 105.04 993,674 6.2% 691,037 GNMA Pool #552393 6.500% 02-15-32 105.03 725,826 6.2% 495,878 GNMA Pool #554203 7.000% 12-15-31 105.64 523,891 6.6% 762,895 GNMA Pool #570141 6.500% 12-15-31 105.04 801,348 6.2% 2,724,799 GNMA Pool #585467 6.000% 08-15-32 104.90 2,858,452 5.7% 1,770,578 GNMA Pool #587080 6.500% 05-15-32 105.03 1,859,712 6.2% 1,983,520 GNMA Pool #589580 5.500% 11-15-32 104.37 2,070,347 5.3% 1,982,156 GNMA Pool #595207 5.500% 12-15-32 104.37 2,068,924 5.3% 1,875,588 GNMA Pool #595606 6.000% 11-15-32 104.90 1,967,587 5.7% 364,622 GNMA Pool #780429 7.500% 09-15-26 106.80 389,439 7.0% ----------- TOTAL INVESTMENTS (identified cost, $44,999,460) - 95.1% $49,512,866 ----------- Other Assets, less Liabilities - 4.9% 2,531,884 ----------- Net Assets - 100.0% $52,044,750 ============
FHLMC - Federal Home Loan Mortgage FNMA - Federal National Mortgage Association GNMA - Government Naitonal Mortgage Association See notes to financial statements WRIGHT CURRENT INCOME FUND (WCIF) - ------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments, at value (identified cost of($44,999,460)(Note 1A) $ 49,512,866 Cash.................................. 2,403,510 Receivable for fund shares issued..... 676 Receivable from investment adviser.... 19,444 Interest receivable................... 248,878 Prepaid assets........................ 2,218 ------------ Total assets.......................... $ 52,187,592 ------------ LIABILITIES: Payable for fund shares reacquired...... $ 10,343 Distributions payable................... 111,792 Payable to affiliate for Trustees' fees. 2 Transfer agent fee payable.............. 6,450 Accrued expenses and other liabilities.. 14,255 ------------ Total liabilities..................... $ 142,842 ------------ NET ASSETS................................ $ 52,044,750 ============ 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................... $ 47,357,890 Accumulated undistributed net realized loss on investments (computed on the basis of identified cost)....................... 405,039 Unrealized appreciation on investments (computed on the basis of identified cost) 4,513,406 Distributions in excess of net investment income..................... (231,585) ------------ Net assets applicable to outstanding shares................................ $ 52,044,750 ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING........................... 4,877,972 ============== NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $ 10.67 ============== STATEMENT OF OPERATIONS Six Months Ended June 30, 2003 (unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Interest income........................ $ 1,857,796 ------------ Expenses - Investment adviser fee (Note 3)........ $ 153,185 Administrator fee (Note 3)............. 30,637 Compensation of Trustees not employees of the investment adviser or administrator 4,800 Custodian fee (Note 1C) Standard shares (Note 1C)............. 37,197 Institutional shares (Note 1C)........ 4,138 Distribution expenses (Note 4)......... 68,623 Transfer and dividend disbursing agent fees Standard shares....................... 9,695 Institutional shares.................. 4,052 Shareholder Communications............. 5,871 Printing............................... 3,168 Audit services......................... 36,600 Legal services......................... 7,338 Registration costs Standard shares....................... 9,420 Institutional shares.................. 8,769 Miscellaneous.......................... 4,269 ------------ Total expenses........................ $ 387,762 ------------ Deduct - Preliminary reduction of custodian fee (Note 1C)......................... $ (8,231) Preliminary allocation of expenses to investment adviser (Note 3)........... (26,710) Preliminary reduction of distribution expenses by principal underwriter (Note 4)..... (39,737) ------------ Total deductions...................... $ (74,678) ------------ Net expenses.......................... $ 313,084 ------------ Net investment income............... $ 1,544,712 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 1,501,701 Change in unrealized appreciation (depreciation) of investments......................... (2,293,397) ------------ Net realized and unrealized gain of investments........................ (791,696) ------------ Net increase in net assets from operations $ 753,016 ============ See notes to financial statements WRIGHT CURRENT INCOME FUND (WCIF) - ------------------------------------------------------------------------------- Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31, 2002 - ----------------------------------------------------------------------------------------------------------------------------------- (unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 1,544,712 $ 3,968,028 Net realized gain (loss) on investments.................................... 1,501,701 (136,364) Change in unrealized appreciation (depreciation) on investments............ (2,293,397) 1,762,726 ------------ ------------ Net increase in net assets resulting from operations..................... $ 753,016 $ 5,594,390 ------------ ------------ Distributions to shareholders (Note 2) - Standard shares............................................................ $ (1,320,064) $ (2,850,468) Institutional shares....................................................... (333,233) (876,513) Tax return of capital Standard shares............................................................ -- (184,992) Institutional shares....................................................... -- (56,884) ------------ ------------ Total distributions...................................................... $ (1,653,297) $ (3,968,857) ------------ ------------ Net increase (decrease) in net assets from Fund share transactions Standard shares............................................................ $ (6,284,932) $ 2,848,357 Institutional shares....................................................... (15,550,021) (3,221,642) ------------ ------------ Net decrease in net assets from fund share transactions.................. $(21,834,953) $ (373,285) ------------ ------------ Net increase (decrease) in net assets.................................... $(22,735,234) $ 1,252,248 NET ASSETS: At beginning of period....................................................... 74,779,984 73,527,736 ------------ ------------ At end of period............................................................. $ 52,044,750 $ 74,779,984 ============= ============= DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD............................................... $ (231,585) $ (123,000) ============= =============
See notes to financial statements WRIGHT CURRENT INCOME FUND (WCIF) - ------------------------------------------------------------------------------- Six Months Ended Year Ended December 31, ------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS June 30, 2003 2002 2001(4) 2000(4) 1999(4) 1998 - ----------------------------------------------------------------------------------------------------------------------------- (Unaudited) Net asset value, beginning of period........ $ 10.810 $ 10.580 $ 10.460 $ 10.090 $ 10.660 $ 10.630 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income(1) ............... $ 0.226 $ 0.565 $ 0.616 $ 0.631 $ 0.620 $ 0.646 Net realized and unrealized gain (loss).. (0.110) 0.231 0.120 0.372 (0.570) 0.028 -------- -------- -------- -------- -------- -------- Total income from investment operations............. $ 0.116 $ 0.796 $ 0.736 $ 1.003 $ 0.050 $ 0.674 -------- -------- -------- -------- -------- -------- Less distributions: Distributions from net investment income. $ (0.256) $ (0.555) $ (0.616) $ (0.633) $ (0.620) $ (0.644) Tax return of capital.................... - (0.011) -- -- -- -- -------- -------- -------- -------- -------- -------- Total distributions.................. $ (0.256) $ (0.566) $ (0.616) $ (0.633) $ (0.620) $ (0.644) -------- -------- -------- -------- -------- -------- Net asset value, end of period.............. $ 10.670 $ 10.810 $ 10.580 $ 10.460 $ 10.090 $ 10.660 ========= ========= ========= ========= ========= ========= Total return(2) ............................ 1.08% 7.70% 7.18% 10.31% 0.52% 6.51% Ratios/Supplemental Data(1): Net assets, end of period (000 omitted).. $ 52,045 $ 59,077 $ 54,966 $ 68,015 $ 76,452 $90,262 Ratio of net expenses to average net assets 0.98%(8) 0.97%(3) 0.95%(6) 0.95%(3)(6) 0.91%(3) 0.90%(3) Ratio of net expenses after custodian fee reduction to average net assets(6)(7) . 0.95%(8) 0.95%(3) -- -- -- -- Ratio of net investment income to average net assets................. 4.43%(8) 5.28% 5.83% 6.22% 6.02% 6.03% Portfolio turnover rate ................. 14% 36%(5) 4%(5) 6%(5) 0%(5) 1%(5) - --------------------------------------------------------------------------------------------------------------------------------- (1)For the six months ended June 30, 2003 and for the years ended December 31, 2002, 2001, 2000, 1999, and 1998, 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: 2003 2002 2001 2000 1999 1998 --------------------------------------------------------- ---- Net investment income per share........ $ 0.224 $ 0.555 $ 0.609 $ 0.629 $ 0.615 $ 0.644 ========= ========= ========= ========= ========= ========= Ratios (As a percentage of average net assets): Expenses ............................ 1.20%(8) 1.06%(3) 1.02%(3) 0.97%(3) 0.96%(3) 0.92%(3) ========= ========= ========= ========= ========= ========= Expenses after custodian fee reduction(7) 1.17%(8) 1.04%(3) -- -- -- -- ========= ========= ========= ========= ========= ========= Net investment income................ 4.21%(8) 5.19% 5.76% 6.20% 5.97% 6.01% ========= ========= ========= ========= ========= ========= - ---------------------------------------------------------------------------------------------------------------------------------- (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)Includes each fund's share of its corresponding portfolio's allocated expenses. (4)Certain of the per share data are based on average shares outstanding. (5)Represents portfolio turnover rate at the fund's corresponding portfolio. (6)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% after custodian fee credits are applied. (7)Custodian fees were reduced by credits resulting from cash balances the fund andor 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. (8)Annualized.
See notes to financial statements 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. WTMM seeks to provide as high a rate of current income as possible consistent with the presentation of capital and maintenance of liquidity. WNTB seeks a high level of income, which is normally above that available from short-term money market instruments or funds. WUSGI seeks a high total return with an emphasis on income. WTRB seeks a superior rate of total return, consisting of a high level of income plus price appreciation. WCIF seeks a high level of current income consistent with moderate fluctuations of principal. Prior to December 20, 2002, WNTB, WUSGI, and WCIF invested 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. Subsequent to December 20, 2002, the Funds invest directly in securities rather than through the Portfolio and maintain the same investment objective. 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 - 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. Use of amortized cost is subject to the fund's compliance with certain conditions as specified under Rule 2a-7 of the Investment Company Act of 1940. B. Interest Income - Interest income consists of interest accrued and discount earned (including both original issue and market discount) and amortization of premium or discount on long-term debt securities when required for federal income tax purposes. The income is accrued ratably to the date of maturity on the investments of the funds. C. Expense Reduction - The 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 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, 2002, the Trust, for federal income tax purposes, had capital loss carryovers of $1,199,399(WNTB), $3,238,502 (WTRB), $1,066,805 (WCIF), and $341 (WTMM) which will reduce taxable income arising from future net realized gain on investments, if any,to the extent permitted by the Code, and thus will reduce the amount of the distribution to shareholders which would otherwise be necessary to relieve the respective fund of any liability for federal income or excise tax. Pursuant to the Code, such capital loss carryovers will expire as follows: 12/31 WNTB WTRB WCIF WTMM - ------------------------------------------------------------------------------- 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 - 2010 - 508,606 111,427 341 At December 31, 2002, net capital losses of $3,266 for WNTB and $29,857 for WCIF attributable to security transactions incurred after October 31, 2002 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. Interim Financial Statements - The interim financial statements relating to June 30, 2003 and for the period then ended have not been audited by independent certified public accountants, but in the opinion of the Trust's management reflect all 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, 2003, the effective annual rate for WTMM was 0.35% and for WNTB, WUSGI, WCIF, and WTRB was 0.45 %. To enhance the net income of WTMM, WNTB and WUSGI, Wright made a preliminary reduction of its investment adviser fee by $30,008, $21,839 and $35,531, respectively. In addition, Wright has been allocated expenses on a preliminary basis of $62,387, $9,698, $16,801, $14,455 and $26,710 on behalf of WTMM, WNTB, WUSGI, WTRB, and WCIF, respectively. 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, 2003, the effective annual rate was 0.07% for WTMM, 0.09% for WNTB, 0.09% for WUSGI, 0.07% for WTRB, and 0.11% 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 average daily net assets of each fund for activities primarily intended to result in the sale of each fund's shares. To enhance the net income of WNTB, WUSGI, WTRB, and WCIF, the Principal Underwriter made a reduction of its fee by $40,583, $19,742, $49,624, and $39,737, 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 each fund's shares. The amount of service fee payable under the Service Plan may not exceed 0.25% annually of each fund's average daily net assets. For the six months ended June 30, 2003, 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: Six Months Ended Year Ended June 30, 2003 December 31, 2002 -------------------------------------------------------------------- Shares Amount Shares Amount - ---------------------------------------------------------------------------------------------------------------------------------- Wright U.S. Treasury Money market Fund-- Sold................................................. 24,085,665 $ 24,085,665 36,968,761 $ 36,968,761 Issued to shareholders in payment of distributions declared............................. 35,043 35,043 156,734 156,734 Redemptions.......................................... (23,071,734) (23,071,734) (38,281,095) (38,281,095) ----------- -------------- ----------- -------------- Net increase/(decrease).......................... 1,048,974 $ 1,048,974 (1,155,600) $ (1,155,600) ============= ================= ============= ================= Wright U.S. Government Near Term Fund-- Sold................................................. 639,351 $ 6,688,478 1,167,139 $ 12,125,339 Issued to shareholders in payment of distributions declare............................... 31,153 325,881 75,264 780,133 Redemptions.......................................... (922,102) (9,644,073) (1,515,316) (15,725,859) ----------- -------------- ----------- -------------- Net decrease..................................... (251,598) $ (2,629,714) (272,913) $ (2,820,387) ============= ================= ============= ================= Wright U.S. GOVERNMENT INTERMEDIATE Fund-- Sold................................................. 201,138 $ 2,773,435 595,408 $ 8,310,825 Issued to shareholders in payment of distributions declare............................... 14,451 199,652 41,876 575,858 Redemptions.......................................... (170,258) (2,347,165) (258,594) (3,563,986) ----------- -------------- ----------- -------------- Net increase..................................... 45,331 $ 625,922 378,690 $ 5,322,697 ============= ================= ============= ================= Wright Total Return Bond Fund-- Sold................................................. 617,325 $ 8,066,873 649,865 $ 8,208,631 Issued to shareholders in payment of distributions declared.............................. 53,081 696,488 150,168 1,897,860 Redemptions.......................................... (558,189) (7,294,580) (1,805,464) (22,886,365) ----------- -------------- ----------- -------------- Net increase (decrease).......................... 112,217 $ 1,468,781 (1,005,431) $ (12,779,874) ============= ================= ============= ================= Wright Current Income Fund -- Standard Shares Sold................................................. 573,783 $ 6,159,739 1,753,958 $ 18,765,516 Issued to shareholders in payment of distributions declared.............................. 58,101 623,937 139,397 1,492,961 Redemptions.......................................... (1,216,922) (13,068,608) (1,627,469) (17,410,120) ----------- -------------- ----------- -------------- Net increase (decrease).......................... (585,038) $ (6,284,932) 265,886 $ 2,848,357 ============= ================= ============= ================= Wright Current Income Fund -- Institutional Shares Sold................................................. 394,118 $ 4,020,000 - $ - Issued to shareholders in payment of distributions declared.............................. 27,597 282,568 91,650 933,035 Redemptions.......................................... (1,948,242) (19,852,589) (409,996) (4,154,677) ----------- -------------- ----------- -------------- Net decrease..................................... (1,526,527) $(15,550,021) (318,346) $ (3,221,642) ============= ================= ============= ================= - --------------------------------------------------------------------------------------------------------------------------------
(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, 2003 --------------------------------------------- WNTB WUSGI WTRB WCIF - ------------------------------------------------------------------------------- Purchases-- Non-U.S. Obligations $ - $ - $ 4,022,630 $ 8,986,689 =========== =========== =========== =========== U.S. Gov't Obligations $18,864,529 $12,047,194 $16,930,875 $ - =========== =========== =========== =========== Sales -- Non-U.S. Gov't Obligation $ - $ - $ 3,886,806 $33,189,142 =========== =========== =========== =========== U.S. Gov't Obligations $20,650,894 $11,592,316 $15,573,188 $ - =========== =========== =========== =========== - ------------------------------------------------------------------------------- (7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) of the investment securities owned at June 30, 2003, as computed on a federal income tax basis, are as follows: WNTB WUSGI WTRB WCIF - ------------------------------------------------------------------------------- Aggregate cost.........$30,688,031 $15,523,974 $39,084,068 $44,999,460 ========== =========== =========== =========== Gross unrealized appreciation. 627,011 347,837 1,995,865 4,513,907 Gross unrealized depreciation. (24,174) (14,533) (53,178) (501) ---------- ---------- ---------- ---------- Net unrealized depreciation. $ 602,837 $ 333,304 $ 1,942,687 $ 4,513,406 =========== =========== =========== =========== (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, 2003. WNTB has $432,000 outstanding at June 30, 2003. (9) CLASS ELIMINATION The Institutional Share class of Current Income Fund was fully liquidated on May 20, 2003. Item 2. CODE OF ETHICS Not Required in Filing. Item 3. AUDIT COMMITTEE FINANCIAL EXPERT Not Required in Filing. Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not Required in Filing. Items 5-6. [Reserved] Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not Required in Filing. Item 8. [Reserved] Item 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Item 10. EXHIBITS (a) and (b) Exhibit is attached to Filing. (c) Exhibit is attached to Filing. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE WRIGHT MANAGED EQUITY TRUST (ON BEHALF OF WRIGHT SELECTED BLUE CHIP EQUITIES FUND, WRIGHT MAJOR BLUE CHIP EQUITIES FUND AND WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND By: /s/Peter M. Donovan --------------------- Peter M. Donovan President Date: August 22, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor ----------------------- James L. O'Connor Treasurer Date: August 22, 2003 By: /s/ Peter M. Donovan ----------------------- Peter M. Donovan President Date: August 22, 2003 EX-99.CERT 3 eqncsrexb0603.txt SECTION 302 CERTIFICATION FORM N-CSR ITEM 10(A) EXHIBIT Not Applicable FORM N-CSR ITEM 10(B) EXHIBIT I, James L. O'Connor, certify that: 1. I have reviewed this report on Form N-CSR of The Wright Managed Equity Trust (on behalf of Wright Selected Blue Chip Equities Fund, Wright Major Blue Chip Equities Fund and Wright International Blue Chip Equities Fund); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date:August 22, 2003 /s/James L. O'Connor - ------------------------ James L. O'Connor Treasurer - ------------------------------------------------------------------------------- I, Peter M. Donovan, certify that: 1. I have reviewed this report on Form N-CSR of The Wright Managed Equity Trust (on behalf of Wright Selected Blue Chip Equities Fund, Wright Major Blue Chip Equities Fund and Wright International Blue Chip Equities Fund); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date:August 22, 2003 /s/Peter M. Donovan - ------------------------ Peter M. Donovan President EX-99.906CERT 4 eqncsrexc0603.txt SECTION 906 CERTIFICATION FORM N-CSR ITEM 10(C) EXHIBIT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned hereby certify in their capacity as Treasurer and President, respectively, of The Wright Managed Equity Trust (the "Trust") (on behalf of Wright Selected Blue Chip Equities Fund, Wright Major Blue Chip Equities Fund and Wright International Blue Chip Equities Fund), that: (a) the Semi-Annual Report of the Trust (on behalf of Wright Selected Blue Chip Equities Fund, Wright Major Blue Chip Equities Fund and Wright International Blue Chip Equities Fund), on Form N-CSR for the period ended June 30, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Trust (on behalf of Wright Selected Blue Chip Equities Fund, Wright Major Blue Chip Equities Fund and Wright International Blue Chip Equities Fund), for such period. A signed original of this written statement required by section 906 has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request. THE WRIGHT MANAGED EQUITY TRUST (ON BEHALF OF WRIGHT SELECTED BLUE CHIP EQUITIES FUND, WRIGHT MAJOR BLUE CHIP EQUITIES FUND AND WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND) Date:August 22, 2003 /s/James L. O'Connor - ------------------------ James L. O'Connor Treasurer Date:August 22, 2003 /s/Peter M. Donovan - ------------------------ Peter M. Donovan President -----END PRIVACY-ENHANCED MESSAGE-----