As filed with the Securities and Exchange Commission on August 19, 2014
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-3489
THE WRIGHT MANAGED EQUITY TRUST
440 Wheelers Farms Road
Milford, Connecticut 06461
Vicki Horwitz
Three Canal Plaza, Suite 600
Portland, ME 04101
207-347-2000
Date of fiscal year end: December 31
Date of reporting period: January 1, 2014 – June 30, 2014
ITEM 1. REPORT TO STOCKHOLDERS.
|
Table of Contents
|
| Investment Objectives | inside front | |
| Letter to Shareholders | 2 | |
| Fund Expenses | 4 | |
| Board of Trustees Annual Approval of the Investment Advisory Agreement | 47 | |
| Important Notices Regarding Delivery of Shareholder Documents, Portfolio Holdings and Proxy Voting | 48 |
|
|
FINANCIAL STATEMENTS
|
|
The Wright Managed Equity Trust
|
|
|
Wright Selected Blue Chip Equities Fund
|
|
|
Portfolio of Investments
|
6
|
|
Statement of Assets and Liabilities
|
8
|
|
Statement of Operations
|
8
|
|
Statements of Changes in Net Assets
|
9
|
|
Financial Highlights
|
10
|
|
Wright Major Blue Chip Equities Fund
|
|
|
Portfolio of Investments
|
11
|
|
Statement of Assets and Liabilities
|
12
|
|
Statement of Operations
|
12
|
|
Statements of Changes in Net Assets
|
13
|
|
Financial Highlights
|
14
|
|
Wright International Blue Chip Equities Fund
|
|
|
Portfolio of Investments
|
15
|
|
Statement of Assets and Liabilities
|
17
|
|
Statement of Operations
|
17
|
|
Statements of Changes in Net Assets
|
18
|
|
Financial Highlights
|
19
|
| Notes to Financial Statements | 20 |
|
The Wright Managed IncomeTrust
|
|
|
Wright Total Return Bond Fund
|
|
|
Portfolio of Investments
|
27
|
|
Statement of Assets and Liabilities
|
31
|
|
Statement of Operations
|
31
|
|
Statements of Changes in Net Assets
|
32
|
|
Financial Highlights
|
33
|
|
Wright Current Income Fund
|
|
|
Portfolio of Investments
|
34
|
|
Statement of Assets and Liabilities
|
38
|
|
Statement of Operations
|
38
|
|
Statements of Changes in Net Assets
|
39
|
|
Financial Highlights
|
40
|
| Notes to Financial Statements | 41 |
| Letter to Shareholders |
Dear Shareholder:
The S&P 500 enjoyed a roughly 5% rate of return in the second quarter of 2014, more than twice its return in the first quarter. Outside the U.S., stock performance was mostly improved in Q2 relative to Q1’s anemic returns or, in the case of emerging markets, outright losses. Bonds also put in a workman-like performance for the quarter, staying ahead of inflation (and the Dow) for a second quarter in a row. Treasury bond yields fell roughly 20 basis points at the long end of the yield curve during Q2, while short rates inched up, resulting in further flattening in the yield curve. U.S. economic growth has rebounded from the dismal first-quarter result, but there is not yet a strong basis for expecting sustainable 3% growth rather than the 2% growth averaged since the economic expansion began five years ago this summer. For the first half of 2014, the S&P 50 total return was 7.1%.
As the third quarter begins, the major stock market averages are trading at all-time highs. With its 5.2% second-quarter return in the books, the S&P 500 has now gone two years since its last price correction of 10% and 2½ years since the last 20% correction. In total, the bull market rally in stocks since March 2009 has powered the S&P 500 to a 190% price rise (Dow, 157%; NASDAQ, 248%), even as stock market volatility, as reflected in the price of S&P 500 index options, has receded to the lowest levels since 2007. These low readings on the Chicago Board Options Exchange Volatility Index (VIX) “fear gauge,” prompted Fed Chairman Janet Yellen to express concern about declining volatility (i.e., growing complacency) at her mid-June press conference. Developed stock markets outside the U.S. failed to perform as well as U.S. stocks once again in the second quarter, but emerging markets did – for only the second time in the past six quarters.
Bonds performed well again in the second quarter, aided by lower rates and declining spreads against Treasuries. Long-term U.S. Treasury bond yields fell about 20 basis points in the quarter, due partly to disappointing economic trends and partly to risk-adverse trading precipitated by geopolitical drama in Iraq and Ukraine. Credit spreads narrowed again in the second quarter; high-yield bonds and the sovereign debt of the nations of Europe had strong showings. The yield-to-worst on the Barclays corporate high-yield composite fell to 4.9% from 5.2% during the second quarter. The Federal Reserve reduced its bond buying rate at its two second-quarter policy meetings, remaining on course to end quantitative easing (QE) by the fourth quarter of 2014. We believe that the Fed will keep short-term interest rates low through mid-2015 and possibly longer if the expected ramp-up in economic growth fails to materialize. The Barclays U.S. bond market aggregate total return was 3.9% for the first half of 2014.
Rising stock prices and the ongoing narrowing in credit spreads fly in the face of concerns that the economies of the U.S., Japan, China and Europe may continue to disappoint. The U.S.’s dismal Q1 GDP growth (+0.1% in the advance estimate, -1.0% in the preliminary estimate and -2.9% in the final estimate) caused a cascade of estimate revisions for 2014. To some degree, soft consumer spending in April and May calls into question the Fed’s forecasts of 3%-ish growth for 2015-16. June’s record level of auto sales and healthy rate of job creation suggest, however, that momentum is building for a stronger second half.
From a low of 1.1% in the year to this past February, the U.S. inflation rate nearly doubled by the middle of the year. The 12-month change in the consumer price index was 2.1% in May, and the core inflation rate hit 2.0% for the first time in over a year. Wage rates have firmed, and with productivity declining, unit labor costs may soon be at worrisome levels. The Fed has been attempting to boost inflation to the 2% level or even, temporarily, higher. Now that the CPI is at those levels, investors may start paying more attention to rising prices and anticipating Fed rate hikes. Higher inflation is not now a global issue, except in that Japan has for the
| 2 |
| Letter to Shareholders |
moment succeeded in breaking the hold of its terrible deflation pressures. In Europe, June’s easing by the ECB was as much about reversing deflation trends as about boosting economic growth.
At midyear 2014, the S&P 500 was priced at 18 times trailing 12 month earnings, high by historical standards, but a far cry from peak P/E’s near 25 at the market top of 2000. Unlike 2007, when stock prices looked reasonable but subprime mortgages were about to crater, we believe that today’s business climate is on an improving trend. On a forward basis, the stock market P/E multiple is in the 16-17 range, a fair approximation of stock value at a time of limited competition from fixed-income securities. Some stock valuation measures suggest that share prices may have gotten ahead of fundamentals. But fundamentals are looking better, and some of the more extreme market valuations have begun to correct. Such internal market dynamics may be enough to avert a broader sell-off and extend the bull market through this, its sixth year. A focus on quality securities with good dividend support offers a prudent risk/reward profile at this juncture.
The strong June employment report released on July 3 was a welcome sign that the second-quarter economy will be as good as the first quarter’s was bad. We are a bit skeptical that U.S. GDP growth will reach and sustain the 3% rate that the Federal Reserve projects for 2015. Nonetheless, we expect a better business backdrop ahead, one that should improve the odds of increasing corporate earnings and higher stock prices in the second half of 2014. Bonds have put in two better-than-expected quarters in a row, but we doubt that the second half will produce equally good returns, as gradually rising interest rates are expected. The lower volatility that bonds, particularly those with shorter-than-market duration, bring to a portfolio warrants their playing an important role in balanced portfolios. If you have any questions on Wright’s views on these matters or on other investment or wealth management issues, please contact me.
Sincerely,
Peter M. Donavan
Chairman & CEO
| 3 |
| Fund Expenses |
Example:
As a shareholder of a fund, you incur two types of costs: (1) transaction costs, including redemption fees (if applicable); and (2) ongoing costs including management fees; distribution or service fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2014 – June 30, 2014).
Actual Expenses:
The first line of the tables shown on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes:
The second line of the tables provides information about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual return of the Fund. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees (if applicable). Therefore, the second line of the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| 4 |
| Fund Expenses |
EQUITY FUNDS
Wright Selected Blue Chip Equities Fund
|
Beginning
Account Value (1/1/14)
|
Ending
Account Value (6/30/14)
|
Expenses Paid
During Period*
(1/1/14-6/30/14)
|
|
|
Actual Fund Shares
|
$1,000.00
|
$ 1,038.55
|
$7.08
|
|
Hypothetical (5% return per year before expenses)
|
|||
|
Fund Shares
|
$1,000.00
|
$ 1,017.85
|
$7.00
|
*Expenses are equal to the Fund’s annualized expense ratio of 1.40% multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on December 31, 2013.
Wright Major Blue Chip Equities Fund
|
Beginning
Account Value
(1/1/14)
|
Ending
Account Value
(6/30/14)
|
Expenses Paid
During Period*
(1/1/14-6/30/14)
|
|
|
Actual Fund Shares
|
$1,000.00
|
$1,083.66
|
$7.23
|
|
Hypothetical (5% return per year before expenses)
|
|||
|
Fund Shares
|
$1,000.00
|
$1,017.85
|
$7.00
|
*Expenses are equal to the Fund’s annualized expense ratio of 1.40% multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on December 31, 2013.
Wright International Blue Chip Equities Fund
|
Beginning
Account Value
(1/1/14)
|
Ending
Account Value
(6/30/14)
|
Expenses Paid
During Period*
(1/1/14-6/30/14)
|
|
|
Actual Fund Shares
|
$1,000.00
|
$1,051.77
|
$ 9.41
|
|
Hypothetical (5% return per year before expenses)
|
|||
|
Fund Shares
|
$1,000.00
|
$1,015.62
|
$ 9.25
|
*Expenses are equal to the Fund’s annualized expense ratio of 1.85% multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on December 31, 2013.
FIXED-INCOME FUNDS
Wright Total Return Bond Fund
|
Beginning
Account Value
(1/1/14)
|
Ending
Account Value
(6/30/14)
|
Expenses Paid
During Period*
(1/1/14-6/30/14)
|
|
|
Actual Fund Shares
|
$1,000.00
|
$1,033.09
|
$4.79
|
|
Hypothetical (5% return per year before expenses)
|
|||
|
Fund Shares
|
$1,000.00
|
$1,020.08
|
$4.76
|
*Expenses are equal to the Fund’s annualized expense ratio of 0.95% multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on December 31, 2013.
Wright Current Income Fund
|
Beginning
Account Value
(1/1/14)
|
Ending
Account Value
(6/30/14)
|
Expenses Paid
During Period*
(1/1/14-6/30/14)
|
|
|
Actual Fund Shares
|
$1,000.00
|
$1,024.79
|
$4.52
|
|
Hypothetical (5% return per year before expenses)
|
|||
|
Fund Shares
|
$1,000.00
|
$1,020.33
|
$4.51
|
*Expenses are equal to the Fund’s annualized expense ratio of 0.90% multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on December 31, 2013.
| 5 |
|
Wright Selected Blue Chip Equities Fund (WSBC)
|
|
|
Portfolio of Investments – As of June 30, 2014
|
|
|
Shares
|
Value
|
Shares
|
Value
|
||||||||||
|
EQUITY INTERESTS - 99.6%
|
FOOD, BEVERAGE & TOBACCO - 0.7%
|
||||||||||||
|
Ingredion, Inc.
|
1,930
|
$
|
144,827
|
||||||||||
|
BANKS - 7.8%
|
Keurig Green Mountain, Inc.
|
1,085
|
135,202
|
||||||||||
|
BancorpSouth, Inc.
|
29,950
|
$
|
735,871
|
$
|
280,029
|
||||||||
|
City National Corp.
|
5,925
|
448,878
|
|||||||||||
|
Commerce Bancshares, Inc.
|
6,045
|
281,093
|
HEALTH CARE EQUIPMENT & SERVICES - 6.3%
|
||||||||||
|
East West Bancorp, Inc.
|
16,825
|
588,707
|
Align Technology, Inc.*
|
2,185
|
$
|
122,447
|
|||||||
|
Fulton Financial Corp.
|
66,615
|
825,360
|
MEDNAX, Inc.*
|
2,725
|
158,459
|
||||||||
|
New York Community Bancorp, Inc.
|
12,590
|
201,188
|
Omnicare, Inc.
|
7,830
|
521,243
|
||||||||
|
Valley National Bancorp
|
13,520
|
133,983
|
ResMed, Inc.
|
12,155
|
615,408
|
||||||||
|
$
|
3,215,080
|
Universal Health Services, Inc. - Class B
|
12,390
|
1,186,466
|
|||||||||
|
$
|
2,604,023
|
||||||||||||
|
CAPITAL GOODS - 14.2%
|
|||||||||||||
|
AECOM Technology Corp.*
|
21,025
|
$
|
677,005
|
HOUSEHOLD & PERSONAL PRODUCTS - 2.3%
|
|||||||||
|
AGCO Corp.
|
8,085
|
454,539
|
Energizer Holdings, Inc.
|
7,635
|
$
|
931,699
|
|||||||
|
Alliant Techsystems, Inc.
|
3,740
|
500,861
|
|||||||||||
|
AMETEK, Inc.
|
4,155
|
217,223
|
INSURANCE - 6.1%
|
||||||||||
|
B/E Aerospace, Inc.*
|
16,050
|
1,484,464
|
American Financial Group, Inc.
|
7,355
|
$
|
438,064
|
|||||||
|
Carlisle Cos., Inc.
|
11,930
|
1,033,377
|
Everest Re Group, Ltd.
|
1,190
|
190,983
|
||||||||
|
Esterline Technologies Corp.*
|
2,270
|
261,322
|
Fidelity National Financial, Inc. - Class A
|
12,205
|
399,836
|
||||||||
|
Exelis, Inc.
|
16,640
|
282,547
|
HCC Insurance Holdings, Inc.
|
18,110
|
886,303
|
||||||||
|
Huntington Ingalls Industries, Inc.
|
2,970
|
280,932
|
Old Republic International Corp.
|
12,150
|
200,961
|
||||||||
|
Terex Corp.
|
11,060
|
454,566
|
WR Berkley Corp.
|
8,352
|
386,781
|
||||||||
|
URS Corp.
|
5,110
|
234,294
|
$
|
2,502,928
|
|||||||||
|
$
|
5,881,130
|
||||||||||||
|
MATERIALS - 7.0%
|
|||||||||||||
|
COMMERCIAL & PROFESSIONAL SERVICES - 3.9%
|
Albemarle Corp.
|
2,650
|
$
|
189,475
|
|||||||||
|
Deluxe Corp.
|
19,260
|
$
|
1,128,251
|
Olin Corp.
|
24,270
|
653,349
|
|||||||
|
RR Donnelley & Sons Co.
|
11,985
|
203,265
|
Packaging Corp. of America
|
13,900
|
993,711
|
||||||||
|
Towers Watson & Co. - Class A
|
2,795
|
291,323
|
Rock-Tenn Co. - Class A
|
4,285
|
452,453
|
||||||||
|
$
|
1,622,839
|
Silgan Holdings, Inc.
|
3,615
|
183,714
|
|||||||||
|
Worthington Industries, Inc.
|
9,685
|
416,842
|
|||||||||||
|
CONSUMER DURABLES & APPAREL - 3.4%
|
$
|
2,889,544
|
|||||||||||
|
Hanesbrands, Inc.
|
14,170
|
$
|
1,394,895
|
||||||||||
|
MEDIA - 3.0%
|
|||||||||||||
|
CONSUMER SERVICES - 2.7%
|
John Wiley & Sons, Inc. - Class A
|
12,865
|
$
|
779,490
|
|||||||||
|
Apollo Education Group, Inc.*
|
7,635
|
$
|
238,594
|
Meredith Corp.
|
9,640
|
466,191
|
|||||||
|
Bally Technologies, Inc.*
|
1,585
|
104,166
|
$
|
1,245,681
|
|||||||||
|
Brinker International, Inc.
|
7,975
|
387,984
|
|||||||||||
|
Cheesecake Factory, Inc. (The)
|
5,710
|
265,058
|
PHARMACEUTICALS & BIOTECHNOLOGY - 4.2%
|
||||||||||
|
DeVry Education Group, Inc.
|
2,590
|
109,661
|
Charles River Laboratories International, Inc.*
|
3,690
|
$
|
197,489
|
|||||||
|
$
|
1,105,463
|
Covance, Inc.*
|
4,335
|
370,989
|
|||||||||
|
Endo International PLC*
|
9,530
|
667,291
|
|||||||||||
|
DIVERSIFIED FINANCIALS - 4.3%
|
United Therapeutics Corp.*
|
5,765
|
510,145
|
||||||||||
|
Affiliated Managers Group, Inc.*
|
1,080
|
$
|
221,832
|
$
|
1,745,914
|
||||||||
|
MSCI, Inc.*
|
14,100
|
646,485
|
|||||||||||
|
Raymond James Financial, Inc.
|
7,815
|
396,455
|
REAL ESTATE - 4.1%
|
||||||||||
|
Waddell & Reed Financial, Inc. - Class A
|
7,965
|
498,529
|
American Campus Communities, Inc. REIT
|
6,225
|
$
|
238,044
|
|||||||
|
$
|
1,763,301
|
Corrections Corp. of America REIT
|
11,195
|
367,756
|
|||||||||
|
Omega Healthcare Investors, Inc. REIT
|
30,130
|
1,110,592
|
|||||||||||
|
ENERGY - 6.8%
|
$
|
1,716,392
|
|||||||||||
|
Atwood Oceanics, Inc.*
|
3,490
|
$
|
183,155
|
||||||||||
|
Cimarex Energy Co.
|
1,740
|
249,620
|
RETAILING - 4.8%
|
||||||||||
|
HollyFrontier Corp.
|
19,134
|
835,965
|
Aaron's, Inc.
|
6,030
|
$
|
214,909
|
|||||||
|
ONEOK, Inc.
|
11,560
|
787,005
|
Advance Auto Parts, Inc.
|
2,525
|
340,673
|
||||||||
|
Patterson-UTI Energy, Inc.
|
18,120
|
633,113
|
Big Lots, Inc.*
|
4,635
|
211,819
|
||||||||
|
Superior Energy Services, Inc.
|
3,545
|
128,116
|
Foot Locker, Inc.
|
21,580
|
1,094,538
|
||||||||
|
$
|
2,816,974
|
Ross Stores, Inc.
|
1,870
|
123,663
|
|||||||||
|
$
|
1,985,602
|
||||||||||||
| See Notes to Financial Statements. | 6 |
|
Wright Selected Blue Chip Equities Fund (WSBC)
|
|
|
Portfolio of Investments – As of June 30, 2014
|
|
|
Shares
|
Value
|
||||||||
|
SOFTWARE & SERVICES - 6.7%
|
|||||||||
|
Acxiom Corp.*
|
17,155
|
$
|
372,092
|
Portfolio Composition by Sector
|
|||||
|
Alliance Data Systems Corp.*
|
2,305
|
648,281
|
% of total investments at June 30, 2014
|
||||||
|
Cadence Design Systems, Inc.*
|
41,750
|
730,208
|
Financials
|
22.4%
|
|||||
|
Conversant, Inc.*
|
3,700
|
93,980
|
Industrials
|
20.3%
|
|||||
|
Jack Henry & Associates, Inc.
|
3,165
|
188,096
|
Consumer Discretionary
|
13.9%
|
|||||
|
Leidos Holdings, Inc.
|
8,430
|
323,206
|
Health Care
|
10.6%
|
|||||
|
NeuStar, Inc. - Class A*
|
16,570
|
431,151
|
Information Technology
|
9.9%
|
|||||
|
$
|
2,787,014
|
Materials
|
7.0%
|
||||||
|
Energy
|
6.8%
|
||||||||
|
TECHNOLOGY HARDWARE & EQUIPMENT - 3.1%
|
Utilities
|
6.2%
|
|||||||
|
Arrow Electronics, Inc.*
|
7,455
|
$
|
450,356
|
Consumer Staples
|
2.9%
|
||||
|
Avnet, Inc.
|
14,645
|
648,920
|
|||||||
|
Zebra Technologies Corp.*
|
2,075
|
170,814
|
|||||||
|
$
|
1,270,090
|
||||||||
|
TRANSPORTATION - 2.1%
|
|||||||||
|
Alaska Air Group, Inc.
|
8,990
|
$
|
854,500
|
||||||
|
UTILITIES - 6.1%
|
|||||||||
|
Great Plains Energy, Inc.
|
16,910
|
$
|
454,372
|
||||||
|
IDACORP, Inc.
|
7,010
|
405,388
|
|||||||
|
ONE Gas, Inc.
|
17,816
|
672,554
|
|||||||
|
UGI Corp.
|
19,910
|
1,005,455
|
|||||||
|
$
|
2,537,769
|
||||||||
|
TOTAL EQUITY INTERESTS - 99.6%
|
$
|
41,150,867
|
|||||||
|
(identified cost, $29,612,658)
|
|||||||||
|
SHORT-TERM INVESTMENTS - 0.2%
|
|||||||||
|
Fidelity Government Money Market Fund, 0.01% (1)
|
88,241
|
$
|
88,241
|
||||||
|
TOTAL SHORT-TERM INVESTMENTS - 0.2%
|
|||||||||
|
(identified cost, $88,241)
|
$
|
88,241
|
|||||||
|
TOTAL INVESTMENTS — 99.8%
|
$
|
41,239,108
|
|||||||
|
(identified cost, $29,700,899)
|
|||||||||
|
OTHER ASSETS, IN EXCESS OF LIABILITIES — 0.2%
|
67,835
|
||||||||
|
NET ASSETS — 100.0%
|
$
|
41,306,943
|
|||||||
|
PLC — Public Limited Company
|
|||||||||
|
REIT — Real Estate Investment Trust
|
|||||||||
| * Non-income producing security. | |||||||||
| (1) Variable rate security. Rate presented is as of June 30, 2014. | |||||||||
| See Notes to Financial Statements. | 7 |
|
Wright Selected Blue Chip Equities Fund (WSBC)
|
|
|
|
|
|
STATEMENT OF ASSETS AND LIABILITIES
|
STATEMENT OF OPERATIONS
|
||||||||||||||
|
ASSETS:
|
FALSE
|
INVESTMENT INCOME (Note 1C)
|
FALSE
|
||||||||||||
|
Investments, at value
|
3.00E+07
|
Dividend income
|
$
|
301,470
|
|||||||||||
|
(identified cost $29,700,899) (Note 1A)
|
$
|
41,239,108
|
######
|
Total investment income
|
$
|
301,470
|
|||||||||
|
Receivable for fund shares sold
|
19,398
|
||||||||||||||
|
Dividends receivable
|
40,359
|
Expenses –
|
|||||||||||||
|
Prepaid expenses and other assets
|
18,698
|
Investment adviser fee (Note 3)
|
$
|
119,144
|
|||||||||||
|
Total assets
|
$
|
41,317,563
|
Administrator fee (Note 3)
|
23,829
|
|||||||||||
|
Trustee expense (Note 3)
|
7,121
|
||||||||||||||
|
LIABILITIES:
|
Custodian fee
|
2,403
|
|||||||||||||
|
Payable for fund shares reacquired
|
$
|
5,048
|
Accountant fee
|
19,795
|
|||||||||||
|
Accrued expenses and other liabilities
|
5,572
|
Distribution expenses (Note 4)
|
49,643
|
||||||||||||
|
Total liabilities
|
$
|
10,620
|
Transfer agent fee
|
14,317
|
|||||||||||
|
NET ASSETS
|
$
|
41,306,943
|
Printing
|
56
|
|||||||||||
|
Shareholder communications
|
2,900
|
||||||||||||||
|
NET ASSETS CONSIST OF:
|
Audit services
|
8,593
|
|||||||||||||
|
Paid-in capital
|
$
|
27,306,370
|
Legal services
|
9,556
|
|||||||||||
|
Accumulated net realized gain on investments
|
2,439,073
|
Compliance services
|
3,145
|
||||||||||||
|
Undistributed net investment income
|
23,291
|
Registration costs
|
10,357
|
||||||||||||
|
Unrealized appreciation on investments
|
11,538,209
|
Interest expense (Note 8)
|
177
|
||||||||||||
|
Net assets applicable to outstanding shares
|
$
|
41,306,943
|
Miscellaneous
|
11,633
|
|||||||||||
|
Total expenses
|
$
|
282,669
|
|||||||||||||
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
2,989,656
|
||||||||||||||
|
Deduct –
|
|||||||||||||||
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
$
|
13.82
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
$
|
(4,490
|
)
|
|||||||||
|
Net expenses
|
$
|
278,179
|
|||||||||||||
|
Net investment income
|
$
|
23,291
|
|||||||||||||
|
|
|||||||||||||||
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
|
||||||||||||||
|
Net realized gain on investment transactions
|
$
|
2,557,110
|
|||||||||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
(1,026,971
|
)
|
|||||||||||||
|
Net realized and unrealized gain on investments
|
$
|
1,530,139
|
|||||||||||||
|
Net increase in net assets from operations
|
$
|
1,553,430
|
|||||||||||||
| See Notes to Financial Statements. | 8 |
|
Wright Selected Blue Chip Equities Fund (WSBC)
|
|
|
Six Months Ended
|
Year Ended
|
|||||||||
|
STATEMENTS OF CHANGES IN NET ASSETS
|
June 30, 2014
|
December 31, 2013
|
||||||||
|
INCREASE (DECREASE) IN NET ASSETS:
|
||||||||||
|
From operations –
|
||||||||||
|
Net investment income (loss)
|
$
|
23,291
|
$
|
(20,491
|
)
|
|||||
|
0
|
Net realized gain on investment transactions
|
2,557,110
|
5,721,464
|
|||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
(1,026,971
|
)
|
6,436,418
|
|||||||
|
Net increase in net assets from operations
|
$
|
1,553,430
|
$
|
12,137,391
|
||||||
|
Distributions to shareholders (Note 2)
|
||||||||||
|
From net investment income
|
$
|
-
|
$
|
(7,466
|
)
|
|||||
|
From net realized capital gains
|
(2,496,590
|
)
|
(4,709,210
|
)
|
||||||
|
Total distributions
|
$
|
(2,496,590
|
)
|
$
|
(4,716,676
|
)
|
||||
|
Net increase in net assets resulting from fund share transactions (Note 6)
|
$
|
2,046,141
|
$
|
2,860,851
|
||||||
|
Net increase in net assets
|
$
|
1,102,981
|
$
|
10,281,566
|
||||||
|
##
|
||||||||||
|
NET ASSETS:
|
||||||||||
|
At beginning of period
|
40,203,962
|
29,922,396
|
||||||||
|
At end of period
|
$
|
41,306,943
|
$
|
40,203,962
|
||||||
|
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD
|
$
|
23,291
|
$
|
-
|
||||||
| See Notes to Financial Statements. | 9 |
|
Wright Selected Blue Chip Equities Fund (WSBC)
|
|
These financial highlights reflect selected data for a share outstanding throughout each period.
|
||||||||||||||||||||||||||
|
Six Months Ended
June 30,
|
Years Ended December 31,
|
|||||||||||||||||||||||||
|
FINANCIAL HIGHLIGHTS
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||||||
|
Net asset value, beginning of period
|
$
|
14.160
|
$
|
11.530
|
$
|
10.280
|
$
|
10.400
|
$
|
8.400
|
$
|
6.060
|
||||||||||||||
|
Income (loss) from investment operations:
|
||||||||||||||||||||||||||
|
Net investment income (loss) (1)
|
0.008
|
(0.007
|
)
|
0.028
|
(0.018
|
)
|
(0.022
|
)
|
0.011
|
|||||||||||||||||
|
Net realized and unrealized gain (loss)
|
0.519
|
4.412
|
1.616
|
(0.102
|
)
|
2.030
|
2.329
|
|||||||||||||||||||
|
Total income (loss) from investment operations
|
0.527
|
4.405
|
1.644
|
(0.120
|
)
|
2.008
|
2.340
|
|||||||||||||||||||
|
Less distributions:
|
||||||||||||||||||||||||||
|
From net investment income
|
—
|
—
|
(2)
|
(0.025
|
)
|
—
|
(0.008
|
)
|
—
|
|||||||||||||||||
|
From net realized gains
|
(0.867
|
)
|
(1.775
|
) |
|
(0.369
|
)
|
—
|
—
|
—
|
||||||||||||||||
|
Total distributions
|
(0.867
|
)
|
(1.775
|
)
|
(0.394
|
)
|
—
|
(0.008
|
)
|
—
|
||||||||||||||||
|
Net asset value, end of period
|
$
|
13.820
|
$
|
14.160
|
$
|
11.530
|
$
|
10.280
|
$
|
10.400
|
$
|
8.400
|
||||||||||||||
|
Total Return(3)
|
3.85
|
%(4)
|
39.82
|
%
|
16.02
|
%
|
(1.15
|
)%
|
23.93
|
%
|
38.61
|
%
|
||||||||||||||
|
Ratios/Supplemental Data(6):
|
||||||||||||||||||||||||||
|
Net assets, end of period (000 omitted)
|
$41,307
|
$40,204
|
$29,922
|
$32,362
|
$28,370
|
$16,763
|
||||||||||||||||||||
|
Ratios (As a percentage of average daily net assets):
|
||||||||||||||||||||||||||
|
Net expenses
|
1.40
|
%(5)
|
1.40
|
%
|
1.40
|
%
|
1.40
|
%
|
1.40
|
%
|
1.36
|
%
|
||||||||||||||
|
Net expenses after custodian fee reduction
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
1.36
|
%
|
|||||||||||||||||||
|
Net investment income (loss)
|
0.12
|
%(5)
|
(0.06
|
)%
|
0.25
|
%
|
(0.17
|
)%
|
(0.24
|
)%
|
0.15
|
%
|
||||||||||||||
|
Portfolio turnover rate
|
30
|
%(4)
|
76
|
%
|
54
|
%
|
82
|
%
|
60
|
%
|
41
|
%
|
||||||||||||||
|
For the six months ended June 30, 2014, and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
For the six months ended June 30, 2014, and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
|||||||||||||||||||||||||
|
(1)
|
Computed using average shares outstanding.
|
|||||||||||||||||||||||||
|
(2)
|
Less than $0.001 per share.
|
|||||||||||||||||||||||||
|
(3)
|
Total 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.
|
|||||||||||||||||||||||||
|
(4)
|
Not annualized.
|
|||||||||||||||||||||||||
|
(5)
|
Annualized.
|
|||||||||||||||||||||||||
|
(6)
|
For each of the periods presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income (loss) ratios would have been as follows:
|
|||||||||||||||||||||||||
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||||||||
|
Ratios (As a percentage of average daily net assets):
|
||||||||||||||||||||||||||
|
Expenses
|
1.42
|
%(5)
|
1.43
|
%
|
1.48
|
%
|
1.46
|
%
|
1.79
|
%
|
2.15
|
%
|
||||||||||||||
|
Expenses after custodian fee reduction
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
2.15
|
%
|
|||||||||||||||||||
|
Net investment income (loss)
|
0.10
|
%(5)
|
(0.08
|
)%
|
0.17
|
%
|
(0.23
|
)%
|
(0.63
|
)%
|
(0.64
|
)%
|
||||||||||||||
| See Notes to Financial Statements. | 10 |
|
Wright Major Blue Chip Equities Fund (WMBC)
|
|
|
Portfolio of Investments – As of June 30, 2014
|
|
Shares
|
Value
|
Shares
|
Value
|
|||||||||
|
RETAILING - 1.6%
|
||||||||||||
|
BANKS - 4.5%
|
TJX Cos., Inc. (The)
|
5,590
|
$
|
297,109
|
||||||||
|
JPMorgan Chase & Co.
|
14,395
|
$
|
829,440
|
|||||||||
|
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 4.1%
|
||||||||||||
|
CAPITAL GOODS - 11.1%
|
Intel Corp.
|
24,490
|
$
|
756,741
|
||||||||
|
3M Co.
|
4,825
|
$
|
691,133
|
|||||||||
|
Cummins, Inc.
|
690
|
106,460
|
SOFTWARE & SERVICES - 13.8%
|
|||||||||
|
General Dynamics Corp.
|
5,410
|
630,536
|
Google, Inc. - Class A*
|
200
|
$
|
116,934
|
||||||
|
Rockwell Automation, Inc.
|
5,040
|
630,806
|
Google, Inc. - Class C*
|
200
|
115,056
|
|||||||
|
$
|
2,058,935
|
Intuit, Inc.
|
965
|
77,711
|
||||||||
|
MasterCard, Inc. - Class A
|
4,235
|
311,146
|
||||||||||
|
CONSUMER DURABLES & APPAREL - 5.4%
|
Microsoft Corp.
|
21,870
|
911,979
|
|||||||||
|
Garmin, Ltd.
|
6,255
|
$
|
380,929
|
Oracle Corp.
|
17,905
|
725,690
|
||||||
|
Polaris Industries, Inc.
|
465
|
60,562
|
Visa, Inc. - Class A
|
1,440
|
303,422
|
|||||||
|
VF Corp.
|
8,945
|
563,535
|
$
|
2,561,938
|
||||||||
|
$
|
1,005,026
|
|||||||||||
|
TECHNOLOGY HARDWARE & EQUIPMENT - 5.6%
|
||||||||||||
|
DIVERSIFIED FINANCIALS - 2.0%
|
Apple, Inc.
|
6,405
|
$
|
595,217
|
||||||||
|
T. Rowe Price Group, Inc.
|
4,305
|
$
|
363,385
|
QUALCOMM, Inc.
|
5,615
|
444,708
|
||||||
|
$
|
1,039,925
|
|||||||||||
|
ENERGY - 11.6%
|
||||||||||||
|
Chevron Corp.
|
3,795
|
$
|
495,437
|
TELECOMMUNICATION SERVICES - 3.7%
|
||||||||
|
Halliburton Co.
|
11,345
|
805,608
|
AT&T, Inc.
|
19,620
|
$
|
693,763
|
||||||
|
Schlumberger, Ltd.
|
7,230
|
852,779
|
||||||||||
|
$
|
2,153,824
|
UTILITIES - 3.8%
|
||||||||||
|
NextEra Energy, Inc.
|
6,810
|
$
|
697,889
|
|||||||||
|
FOOD & STAPLES RETAILING - 1.3%
|
||||||||||||
|
Walgreen Co.
|
3,350
|
$
|
248,336
|
TOTAL EQUITY INTERESTS - 100.7%
|
$
|
18,673,296
|
||||||
|
(identified cost, $15,387,295)
|
||||||||||||
|
FOOD, BEVERAGE & TOBACCO - 1.8%
|
||||||||||||
|
Coca-Cola Co. (The)
|
3,875
|
$
|
164,145
|
TOTAL INVESTMENTS — 100.7%
|
$
|
18,673,296
|
||||||
|
Monster Beverage Corp.*
|
2,380
|
169,051
|
(identified cost, $15,387,295)
|
|||||||||
|
$
|
333,196
|
|||||||||||
|
LIABILITIES, IN EXCESS OF OTHER ASSETS — (0.7)%
|
(120,600
|
)
|
||||||||||
|
HEALTH CARE EQUIPMENT & SERVICES - 7.6%
|
||||||||||||
|
Abbott Laboratories
|
10,670
|
$
|
436,403
|
NET ASSETS — 100.0%
|
$
|
18,552,696
|
||||||
|
Humana, Inc.
|
2,865
|
365,918
|
||||||||||
|
Stryker Corp.
|
7,260
|
612,163
|
* — Non-income producing security.
|
|||||||||
|
$
|
1,414,484
|
|||||||||||
|
|
||||||||||||
|
Portfolio Composition by Sector
|
||||||||||||
|
INSURANCE - 7.3%
|
% of total investments at June 30, 2014
|
|||||||||||
|
Aflac, Inc.
|
10,260
|
$
|
638,685
|
Information Technology
|
23.3%
|
|||||||
|
MetLife, Inc.
|
12,945
|
719,224
|
Health Care
|
18.1%
|
||||||||
|
$
|
1,357,909
|
Financials
|
13.7%
|
|||||||||
|
Energy
|
11.5%
|
|||||||||||
|
MATERIALS - 4.6%
|
Industrials
|
11.1%
|
||||||||||
|
CF Industries Holdings, Inc.
|
1,565
|
$
|
376,429
|
Consumer Discretionary
|
7.3%
|
|||||||
|
Monsanto Co.
|
3,755
|
468,399
|
Materials
|
4.5%
|
||||||||
|
$
|
844,828
|
Telecommunication Services
|
3.7%
|
|||||||||
|
Utilities
|
3.7%
|
|||||||||||
|
MEDIA - 0.3%
|
Consumer Staples
|
3.1%
|
||||||||||
|
Scripps Networks Interactive, Inc. - Class A
|
710
|
$
|
57,609
|
|||||||||
|
PHARMACEUTICALS & BIOTECHNOLOGY - 10.6%
|
||||||||||||
|
Allergan, Inc.
|
760
|
$
|
128,607
|
|||||||||
|
Amgen, Inc.
|
6,010
|
711,404
|
||||||||||
|
Gilead Sciences, Inc.*
|
2,215
|
183,645
|
||||||||||
|
Johnson & Johnson
|
8,940
|
935,303
|
||||||||||
|
$
|
1,958,959
|
|||||||||||
| See Notes to Financial Statements. | 11 |
|
Wright Major Blue Chip Equities Fund (WMBC)
|
|
|
|
|
STATEMENT OF ASSETS AND LIABILITIES
|
STATEMENT OF OPERATIONS
|
|||||||||||||
|
ASSETS:
|
FALSE
|
INVESTMENT INCOME (Note 1C)
|
FALSE
|
|||||||||||
|
Investments, at value
|
2.00E+07
|
Dividend income
|
$
|
189,448
|
||||||||||
|
(identified cost $15,387,295) (Note 1A)
|
$
|
18,673,296
|
######
|
Total investment income
|
$
|
189,448
|
||||||||
|
Receivable for fund shares sold
|
1,133
|
|||||||||||||
|
Dividends receivable
|
7,091
|
Expenses –
|
||||||||||||
|
Prepaid expenses and other assets
|
17,563
|
Investment adviser fee (Note 3)
|
$
|
52,658
|
||||||||||
|
Total assets
|
$
|
18,699,083
|
Administrator fee (Note 3)
|
10,532
|
||||||||||
|
Trustee expense (Note 3)
|
7,096
|
|||||||||||||
|
LIABILITIES:
|
Custodian fee
|
2,516
|
||||||||||||
|
Outstanding line of credit (Note 8)
|
$
|
130,241
|
Accountant fee
|
18,836
|
||||||||||
|
Payable for fund shares reacquired
|
6,553
|
Distribution expenses (Note 4)
|
21,941
|
|||||||||||
|
Accrued expenses and other liabilities
|
9,593
|
Transfer agent fee
|
12,683
|
|||||||||||
|
Total liabilities
|
$
|
146,387
|
Printing
|
25
|
||||||||||
|
NET ASSETS
|
$
|
18,552,696
|
Shareholder communications
|
2,384
|
||||||||||
|
Audit services
|
8,557
|
|||||||||||||
|
NET ASSETS CONSIST OF:
|
Legal services
|
2,902
|
||||||||||||
|
Paid-in capital
|
$
|
17,741,638
|
Compliance services
|
2,788
|
||||||||||
|
Accumulated net realized loss on investments
|
(2,541,354
|
)
|
Registration costs
|
10,149
|
||||||||||
|
Undistributed net investment income
|
66,411
|
Interest expense (Note 8)
|
168
|
|||||||||||
|
Unrealized appreciation on investments
|
3,286,001
|
Miscellaneous
|
8,417
|
|||||||||||
|
Net assets applicable to outstanding shares
|
$
|
18,552,696
|
Total expenses
|
$
|
161,652
|
|||||||||
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
1,005,529
|
Deduct –
|
||||||||||||
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
$
|
18.45
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
$
|
(38,615
|
)
|
||||||||
|
Net expenses
|
$
|
123,037
|
||||||||||||
|
Net investment income
|
$
|
66,411
|
||||||||||||
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
|
|||||||||||||
|
|
Net realized gain on investment transactions
|
$
|
1,195,074
|
|||||||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
193,723
|
|||||||||||||
|
Net realized and unrealized gain on investments
|
$
|
1,388,797
|
||||||||||||
|
Net increase in net assets from operations
|
$
|
1,455,208
|
||||||||||||
| See Notes to Financial Statements. | 12 |
|
Wright Major Blue Chip Equities Fund (WMBC)
|
|
Six Months Ended
|
Year Ended
|
|||||||||
|
STATEMENTS OF CHANGES IN NET ASSETS
|
June 30, 2014
|
December 31, 2013
|
||||||||
|
INCREASE (DECREASE) IN NET ASSETS:
|
||||||||||
|
From operations –
|
||||||||||
|
Net investment income
|
$
|
66,411
|
$
|
105,865
|
||||||
|
0
|
Net realized gain on investment transactions
|
1,195,074
|
1,526,891
|
|||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
193,723
|
3,279,155
|
||||||||
|
Net increase in net assets from operations
|
$
|
1,455,208
|
$
|
4,911,911
|
||||||
|
Distributions to shareholders (Note 2)
|
||||||||||
|
From net investment income
|
$
|
(4,605
|
)
|
$
|
(103,923
|
)
|
||||
|
Total distributions
|
$
|
(4,605
|
)
|
$
|
(103,923
|
)
|
||||
|
Net decrease in net assets resulting from fund share transactions (Note 6)
|
$
|
(589,576
|
)
|
$
|
(2,675,499
|
)
|
||||
|
Net increase in net assets
|
$
|
861,027
|
$
|
2,132,489
|
||||||
|
##
|
||||||||||
|
NET ASSETS:
|
||||||||||
|
At beginning of period
|
17,691,669
|
15,559,180
|
||||||||
|
At end of period
|
$
|
18,552,696
|
$
|
17,691,669
|
||||||
|
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD
|
$
|
66,411
|
$
|
4,605
|
||||||
| See Notes to Financial Statements. | 13 |
|
Wright Major Blue Chip Equities Fund (WMBC)
|
|
These financial highlights reflect selected data for a share outstanding throughout each period.
|
||||||||||||||||||||||
|
Six Months Ended
June 30,
|
Years Ended December 31,
|
|||||||||||||||||||||
|
FINANCIAL HIGHLIGHTS
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||
|
Net asset value, beginning of period
|
$
|
17.030
|
$
|
12.690
|
$
|
12.260
|
$
|
12.250
|
$
|
10.870
|
$
|
9.340
|
||||||||||
|
Income (loss) from investment operations:
|
||||||||||||||||||||||
|
Net investment income (loss) (1)
|
0.065
|
0.096
|
0.082
|
(0.012
|
)
|
0.044
|
0.099
|
|||||||||||||||
|
Net realized and unrealized gain (loss)
|
1.355
|
4.344
|
0.437
|
0.022
|
1.389
|
1.564
|
||||||||||||||||
|
Total income (loss) from investment operations
|
1.420
|
4.440
|
0.519
|
0.010
|
1.433
|
1.663
|
||||||||||||||||
|
Less distributions:
|
||||||||||||||||||||||
|
From net investment income
|
—
|
(2)
|
(0.100
|
)
|
(0.089
|
)
|
—
|
(0.053
|
)
|
(0.133
|
)
|
|||||||||||
|
Net asset value, end of period
|
$
|
18.450
|
$
|
17.030
|
$
|
12.690
|
$
|
12.260
|
$
|
12.250
|
$
|
10.870
|
||||||||||
|
Total Return(3)
|
8.37
|
%(4)
|
35.03
|
%
|
4.23
|
%
|
0.08
|
%
|
13.19
|
%
|
17.83
|
%
|
||||||||||
|
Ratios/Supplemental Data(6):
|
||||||||||||||||||||||
|
Net assets, end of period (000 omitted)
|
$18,553
|
$17,692
|
$15,559
|
$18,921
|
$21,676
|
$27,337
|
||||||||||||||||
|
Ratios (As a percentage of average daily net assets):
|
||||||||||||||||||||||
|
Net expenses
|
1.40
|
%(5)
|
1.40
|
%
|
1.40
|
%
|
1.40
|
%
|
1.41
|
%
|
1.36
|
%
|
||||||||||
|
Net expenses after custodian fee reduction
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
1.36
|
%
|
|||||||||||||||
|
Net investment income (loss)
|
0.76
|
%(5)
|
0.65
|
%
|
0.64
|
%
|
(0.09
|
)%
|
0.39
|
%
|
1.06
|
%
|
||||||||||
|
Portfolio turnover rate
|
31
|
%(4)
|
64
|
%
|
76
|
%
|
154
|
%
|
68
|
%
|
69
|
%
|
||||||||||
|
For the six months ended June 30, 2014, and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
For the six months ended June 30, 2014, and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
|||||||||||||||||||||
|
(1)
|
Computed using average shares outstanding.
|
|||||||||||||||||||||
|
(2)
|
Less than $0.001 per share.
|
|||||||||||||||||||||
|
(3)
|
Total 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.
|
|||||||||||||||||||||
|
(4)
|
Not annualized.
|
|||||||||||||||||||||
|
(5)
|
Annualized.
|
|||||||||||||||||||||
|
(6)
|
For each of the periods presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income (loss) ratios would have been as follows:
|
|||||||||||||||||||||
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||||
|
Ratios (As a percentage of average daily net assets):
|
||||||||||||||||||||||
|
Expenses
|
1.84
|
%(5)
|
1.87
|
%
|
1.84
|
%
|
1.70
|
%
|
1.68
|
%
|
1.55
|
%
|
||||||||||
|
Expenses after custodian fee reduction
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
1.55
|
%
|
|||||||||||||||
|
Net investment income (loss)
|
0.32
|
%(5)
|
0.17
|
%
|
0.20
|
%
|
(0.39
|
)%
|
0.13
|
%
|
0.86
|
%
|
||||||||||
| See Notes to Financial Statements. | 14 |
|
Wright International Blue Chip Equities Fund (WIBC)
Portfolio of Investments – As of June 30, 2014
|
|
Shares
|
Value
|
Shares
|
Value
|
|||||||||
|
Infineon Technologies AG
|
8,327
|
$
|
104,079
|
|||||||||
|
Muenchener Rueckversicherungs AG - Class R
|
1,497
|
331,833
|
||||||||||
|
Siemens AG
|
2,027
|
267,675
|
||||||||||
|
Volkswagen AG
|
2,072
|
535,603
|
||||||||||
|
AUSTRALIA - 3.8%
|
$
|
4,128,551
|
||||||||||
|
Australia & New Zealand Banking Group, Ltd.*
|
7,831
|
$
|
246,426
|
|||||||||
|
Commonwealth Bank of Australia
|
4,135
|
315,660
|
GREECE - 0.3%
|
|||||||||
|
CSL, Ltd.
|
2,520
|
158,289
|
Dynagas LNG Partners LP
|
4,178
|
$
|
101,316
|
||||||
|
Flight Centre Travel Group, Ltd.
|
3,743
|
157,034
|
||||||||||
|
Rio Tinto PLC
|
5,712
|
303,597
|
HONG KONG - 0.3%
|
|||||||||
|
Seek, Ltd.
|
7,235
|
108,236
|
Hutchison Whampoa, Ltd.
|
8,000
|
$
|
109,414
|
||||||
|
$
|
1,289,242
|
|||||||||||
|
IRELAND - 0.5%
|
||||||||||||
|
AUSTRIA - 0.6%
|
Ryanair Holdings PLC*
|
17,099
|
$
|
160,951
|
||||||||
|
OMV AG
|
1,443
|
$
|
65,198
|
|||||||||
|
Voestalpine AG
|
3,017
|
143,563
|
ISRAEL - 0.3%
|
|||||||||
|
$
|
208,761
|
Teva Pharmaceutical Industries, Ltd., ADR
|
1,906
|
$
|
99,913
|
|||||||
|
CANADA - 5.5%
|
ITALY - 3.4%
|
|||||||||||
|
Agrium, Inc.
|
1,829
|
$
|
167,849
|
Enel SpA
|
34,096
|
$
|
198,588
|
|||||
|
Canadian Natural Resources, Ltd.
|
4,010
|
184,585
|
Eni SpA (Azioni Ordinarie)
|
16,091
|
440,179
|
|||||||
|
CGI Group, Inc. - Class A*
|
8,963
|
318,247
|
Intesa Sanpaolo SpA
|
160,124
|
494,591
|
|||||||
|
EnCana Corp.
|
7,207
|
171,049
|
$
|
1,133,358
|
||||||||
|
Gildan Activewear, Inc.
|
1,972
|
116,396
|
||||||||||
|
Manulife Financial Corp.
|
8,469
|
168,641
|
JAPAN - 19.9%
|
|||||||||
|
Toronto-Dominion Bank (The)
|
14,330
|
739,001
|
ADEKA Corp.
|
7,900
|
$
|
105,978
|
||||||
|
$
|
1,865,768
|
Asahi Kasei Corp.
|
49,000
|
374,858
|
||||||||
|
Asics Corp.
|
4,800
|
111,963
|
||||||||||
|
COLOMBIA - 1.0%
|
Bridgestone Corp.
|
3,800
|
132,975
|
|||||||||
|
Pacific Rubiales Energy Corp.
|
17,217
|
$
|
350,434
|
Central Japan Railway Co.
|
2,291
|
326,785
|
||||||
|
Daito Trust Construction Co., Ltd.
|
2,700
|
317,428
|
||||||||||
|
Daiwa Securities Group, Inc.
|
18,000
|
155,826
|
||||||||||
|
DENMARK - 1.3%
|
Hoya Corp.
|
4,100
|
136,228
|
|||||||||
|
AP Moeller - Maersk A/S - Class B
|
171
|
$
|
424,893
|
ITOCHU Corp.
|
46,800
|
601,025
|
||||||
|
KDDI Corp.
|
14,300
|
872,215
|
||||||||||
|
Maeda Road Construction Co., Ltd.
|
8,000
|
138,433
|
||||||||||
|
FRANCE - 11.1%
|
Mazda Motor Corp.
|
61,000
|
286,017
|
|||||||||
|
AXA SA
|
8,259
|
$
|
197,378
|
Meitec Corp.
|
5,600
|
174,680
|
||||||
|
BNP Paribas SA
|
9,257
|
627,944
|
Mitsubishi Corp.
|
8,500
|
176,788
|
|||||||
|
Cie de Saint-Gobain
|
1,598
|
90,153
|
Murata Manufacturing Co., Ltd.
|
1,800
|
168,460
|
|||||||
|
Cie Generale des Etablissements Michelin
|
2,693
|
321,738
|
NHK Spring Co., Ltd.*
|
11,400
|
106,905
|
|||||||
|
Danone SA
|
1,949
|
144,738
|
Nippon Paint Co., Ltd.
|
6,000
|
126,983
|
|||||||
|
GDF Suez
|
5,791
|
159,408
|
Nippon Telegraph & Telephone Corp.
|
6,000
|
374,197
|
|||||||
|
Orange SA
|
27,799
|
438,653
|
Omron Corp.
|
3,900
|
164,385
|
|||||||
|
Publicis Groupe SA
|
1,334
|
113,130
|
ORIX Corp.
|
17,900
|
296,669
|
|||||||
|
Renault SA
|
1,352
|
122,228
|
Sekisui House, Ltd.
|
11,000
|
150,822
|
|||||||
|
Safran SA
|
1,412
|
92,438
|
SoftBank Corp.
|
1,600
|
119,133
|
|||||||
|
Sanofi
|
1,636
|
173,774
|
Sumitomo Corp.
|
36,900
|
498,289
|
|||||||
|
Societe Generale SA
|
2,694
|
141,103
|
Sumitomo Realty & Development Co., Ltd.
|
2,000
|
85,820
|
|||||||
|
Total SA
|
10,871
|
785,579
|
Sumitomo Rubber Industries, Ltd.
|
11,200
|
161,635
|
|||||||
|
Veolia Environnement SA
|
9,035
|
172,132
|
Suzuki Motor Corp.
|
5,700
|
178,531
|
|||||||
|
Vivendi SA
|
2,765
|
67,650
|
Toyota Motor Corp.
|
6,000
|
360,338
|
|||||||
|
Zodiac Aerospace
|
2,270
|
76,829
|
$
|
6,703,366
|
||||||||
|
$
|
3,724,875
|
|||||||||||
|
NETHERLANDS - 1.5%
|
||||||||||||
|
GERMANY - 12.3%
|
Koninklijke Boskalis Westminster NV
|
5,303
|
$
|
304,110
|
||||||||
|
Allianz SE
|
1,510
|
$
|
251,605
|
Koninklijke DSM NV
|
2,529
|
184,175
|
||||||
|
BASF SE
|
9,505
|
1,106,561
|
$
|
488,285
|
||||||||
|
Bayer AG
|
2,386
|
336,970
|
||||||||||
|
Bayerische Motoren Werke AG
|
2,904
|
368,258
|
||||||||||
|
Continental AG
|
1,250
|
289,490
|
||||||||||
|
Daimler AG
|
4,197
|
393,048
|
||||||||||
|
Deutsche Lufthansa AG
|
6,681
|
143,429
|
||||||||||
| See Notes to Financial Statements. | 15 |
|
Wright International Blue Chip Equities Fund (WIBC)
Portfolio of Investments – As of June 30, 2014
|
|
Shares
|
Value
|
ADR — American Depositary Receipt
|
||||||||
|
NORWAY - 3.9%
|
LP — Limited Partnership
|
|||||||||
|
Statoil ASA
|
25,639
|
$
|
787,183
|
PLC — Public Limited Company
|
||||||
|
Yara International ASA
|
10,468
|
524,227
|
* Non-income producing security.
|
|||||||
|
$
|
1,311,410
|
(1) Variable rate security. Rate presented is as of June 30, 2014.
|
||||||||
|
|
||||||||||
|
SPAIN - 5.3%
|
Portfolio Composition by Sector
|
|||||||||
|
Banco Bilbao Vizcaya Argentaria SA
|
35,745
|
$
|
455,585
|
% of total investments at June 30, 2014
|
||||||
|
Enagas SA
|
5,826
|
187,452
|
Financials
|
23.4%
|
||||||
|
Gas Natural SDG SA
|
19,854
|
626,979
|
Industrials
|
14.3%
|
||||||
|
Iberdrola SA
|
65,136
|
497,897
|
Consumer Discretionary
|
13.1%
|
||||||
|
$
|
1,767,913
|
Energy
|
11.2%
|
|||||||
|
Materials
|
10.5%
|
|||||||||
|
Health Care
|
9.7%
|
|||||||||
|
SWITZERLAND - 11.7%
|
Telecommunication Services
|
6.2%
|
||||||||
|
Actelion, Ltd.*
|
4,576
|
$
|
578,966
|
Utilities
|
5.5%
|
|||||
|
Credit Suisse Group AG
|
15,201
|
434,706
|
Consumer Staples
|
3.4%
|
||||||
|
Nestle SA
|
12,968
|
1,004,625
|
Information Technology
|
2.7%
|
||||||
|
Novartis AG
|
4,427
|
400,866
|
||||||||
|
Roche Holding AG
|
583
|
173,888
|
||||||||
|
Swatch Group AG (The)
|
2,406
|
267,243
|
||||||||
|
Swiss Re AG
|
9,903
|
881,086
|
||||||||
|
Zurich Insurance Group AG (Inhaberktie)
|
613
|
184,771
|
||||||||
|
$
|
3,926,151
|
|||||||||
|
UNITED KINGDOM - 16.4%
|
||||||||||
|
AstraZeneca PLC
|
6,998
|
$
|
519,364
|
|||||||
|
Aviva PLC
|
42,420
|
370,275
|
||||||||
|
BBA Aviation PLC
|
19,611
|
103,614
|
||||||||
|
BHP Billiton PLC
|
13,848
|
447,396
|
||||||||
|
BP PLC
|
67,870
|
597,528
|
||||||||
|
GlaxoSmithKline PLC
|
29,807
|
797,100
|
||||||||
|
IMI PLC
|
6,337
|
161,121
|
||||||||
|
Legal & General Group PLC
|
218,833
|
843,382
|
||||||||
|
Lloyds Banking Group PLC*
|
188,332
|
239,099
|
||||||||
|
Rolls-Royce Holdings PLC*
|
37,470
|
684,887
|
||||||||
|
Royal Dutch Shell PLC - Class B*
|
5,913
|
257,055
|
||||||||
|
Vodafone Group PLC
|
54,334
|
181,161
|
||||||||
|
Wolseley PLC
|
1,964
|
107,561
|
||||||||
|
WPP PLC
|
9,233
|
201,127
|
||||||||
|
$
|
5,510,670
|
|||||||||
|
TOTAL EQUITY INTERESTS - 99.1%
|
|
$
|
33,305,271
|
|||||||
|
(identified cost, $24,608,118)
|
||||||||||
|
SHORT-TERM INVESTMENTS - 0.4%
|
||||||||||
|
Fidelity Government Money Market Fund, 0.01% (1)
|
132,583
|
$
|
132,583
|
|||||||
|
TOTAL SHORT-TERM INVESTMENTS - 0.4%
|
|
$
|
132,583
|
|||||||
|
(identified cost, $132,583)
|
||||||||||
|
TOTAL INVESTMENTS — 99.5%
|
|
$
|
33,437,854
|
|||||||
|
(identified cost, $24,740,701)
|
||||||||||
|
OTHER ASSETS, IN EXCESS OF LIABILITIES — 0.5%
|
|
176,470 | ||||||||
|
NET ASSETS — 100.0%
|
|
$
|
33,614,324
|
|||||||
| See Notes to Financial Statements. | 16 |
|
Wright International Blue Chip Equities Fund (WIBC)
|
|
STATEMENT OF ASSETS AND LIABILITIES
|
STATEMENT OF OPERATIONS
|
|||||||||||||
|
ASSETS:
|
FALSE
|
INVESTMENT INCOME (Note 1C)
|
FALSE
|
|||||||||||
|
Investments, at value
|
2.00E+07
|
Dividend income (net of foreign taxes $100,948)
|
$
|
1,033,036
|
||||||||||
|
(identified cost $24,740,701) (Note 1A)
|
$
|
33,437,854
|
######
|
Total investment income
|
$
|
1,033,036
|
||||||||
|
Foreign currency, at value
|
||||||||||||||
|
(identified cost $26,531) (Note 1A)
|
26,798
|
######
|
Expenses –
|
|||||||||||
|
Receivable for fund shares sold
|
4,124
|
Investment adviser fee (Note 3)
|
$
|
129,718
|
||||||||||
|
Dividends receivable
|
45,631
|
Administrator fee (Note 3)
|
27,565
|
|||||||||||
|
Tax reclaims receivable
|
116,259
|
Trustee expense (Note 3)
|
7,175
|
|||||||||||
|
Prepaid expenses and other assets
|
18,357
|
Custodian fee
|
19,519
|
|||||||||||
|
Total assets
|
$
|
33,649,023
|
Accountant fee
|
31,856
|
||||||||||
|
Distribution expenses (Note 4)
|
40,537
|
|||||||||||||
|
LIABILITIES:
|
Transfer agent fee
|
22,886
|
||||||||||||
|
Payable for fund shares reacquired
|
$
|
6,203
|
Printing
|
51
|
||||||||||
|
Accrued expenses and other liabilities
|
28,496
|
Shareholder communications
|
2,947
|
|||||||||||
|
Total liabilities
|
$
|
34,699
|
Audit services
|
8,653
|
||||||||||
|
NET ASSETS
|
$
|
33,614,324
|
Legal services
|
5,354
|
||||||||||
|
Compliance services
|
3,049
|
|||||||||||||
|
NET ASSETS CONSIST OF:
|
Registration costs
|
10,503
|
||||||||||||
|
Paid-in capital
|
$
|
75,628,717
|
Interest expense (Note 8)
|
258
|
||||||||||
|
Accumulated net realized loss on investments and foreign currency
|
(51,030,012
|
)
|
Miscellaneous
|
16,703
|
||||||||||
|
Undistributed net investment income
|
316,405
|
Total expenses
|
$
|
326,774
|
||||||||||
|
Unrealized appreciation on investments and foreign currency
|
8,699,214
|
|||||||||||||
|
Net assets applicable to outstanding shares
|
$
|
33,614,324
|
Deduct –
|
|||||||||||
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
$
|
(26,542
|
)
|
|||||||||||
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
1,964,937
|
Net expenses
|
$
|
300,232
|
||||||||||
|
Net investment income
|
$
|
732,804
|
||||||||||||
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
$
|
17.11
|
||||||||||||
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
|
||||||||||||||
|
Net realized loss –
|
||||||||||||||
|
|
Investment transactions
|
$
|
1,141,892
|
|||||||||||
|
|
Foreign currency transactions
|
(1,778
|
)
|
|||||||||||
|
Net realized loss
|
$
|
1,140,114
|
||||||||||||
|
Change in unrealized appreciation (depreciation) –
|
||||||||||||||
|
Investments
|
$
|
(181,340
|
)
|
|||||||||||
|
Foreign currency translations
|
(759
|
)
|
||||||||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
$
|
(182,099
|
)
|
|||||||||||
|
Net realized and unrealized gain on investments and foreign currency translations
|
$
|
958,015
|
||||||||||||
|
Net increase in net assets from operations
|
$
|
1,690,819
|
||||||||||||
| See Notes to Financial Statements. | 17 |
|
Wright International Blue Chip Equities Fund (WIBC)
|
|
Six Months Ended
|
Year Ended
|
|||||||||
|
STATEMENTS OF CHANGES IN NET ASSETS
|
June 30, 2014
|
December 31, 2013
|
||||||||
|
INCREASE (DECREASE) IN NET ASSETS:
|
||||||||||
|
From operations –
|
||||||||||
|
Net investment income
|
$
|
732,804
|
$
|
492,899
|
||||||
|
-6694
|
Net realized gain on investment and foreign currency transactions
|
1,140,114
|
2,430,822
|
|||||||
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations
|
(182,099
|
)
|
2,597,853
|
|||||||
|
Net increase in net assets from operations
|
$
|
1,690,819
|
$
|
5,521,574
|
||||||
|
Distributions to shareholders (Note 2)
|
||||||||||
|
From net investment income
|
$
|
(24,458
|
)
|
$
|
(1,049,112
|
)
|
||||
|
Total distributions
|
$
|
(24,458
|
)
|
$
|
(1,049,112
|
)
|
||||
|
Net decrease in net assets resulting from fund share transactions (Note 6)
|
$
|
(119,005
|
)
|
$
|
(5,661,248
|
)
|
||||
|
Net increase (decrease) in net assets
|
$
|
1,547,356
|
$
|
(1,188,786
|
)
|
|||||
|
##
|
||||||||||
|
NET ASSETS:
|
||||||||||
|
At beginning of period
|
32,066,968
|
33,255,754
|
||||||||
|
At end of period
|
$
|
33,614,324
|
$
|
32,066,968
|
||||||
|
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD
|
$
|
316,405
|
$
|
(391,941
|
)
|
|||||
| See Notes to Financial Statements. | 18 |
|
Wright International Blue Chip Equities Fund (WIBC)
|
|
These financial highlights reflect selected data for a share outstanding throughout each period.
|
||||||||||||||||||||||||
|
Six Months Ended
June 30,
|
Years Ended December 31,
|
|||||||||||||||||||||||
|
FINANCIAL HIGHLIGHTS
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||||
|
Net asset value, beginning of period
|
$
|
16.280
|
$
|
14.120
|
$
|
12.580
|
$
|
14.860
|
$
|
14.460
|
$
|
10.810
|
||||||||||||
|
Income (loss) from investment operations:
|
||||||||||||||||||||||||
|
Net investment income (1)
|
0.367
|
0.236
|
0.244
|
0.224
|
0.170
|
0.208
|
||||||||||||||||||
|
Net realized and unrealized gain (loss)
|
0.475
|
2.480
|
1.567
|
(2.256
|
)
|
0.640
|
3.442
|
|||||||||||||||||
|
Total income (loss) from investment operations
|
0.842
|
2.716
|
1.811
|
(2.032
|
)
|
0.810
|
3.650
|
|||||||||||||||||
|
Less distributions:
|
||||||||||||||||||||||||
|
From net investment income
|
(0.012
|
)
|
(0.556
|
)
|
(0.272
|
)
|
(0.248
|
)
|
(0.410
|
)
|
—
|
|||||||||||||
|
Redemption Fees(1)
|
—
|
(2)
|
—
|
(2)
|
0.001
|
—
|
(2)
|
—
|
(2)
|
—
|
||||||||||||||
|
#
|
||||||||||||||||||||||||
|
Net asset value, end of period
|
$
|
17.110
|
$
|
16.280
|
$
|
14.120
|
$
|
12.580
|
$
|
14.860
|
$
|
14.460
|
||||||||||||
|
Total Return(3)
|
5.18
|
%(4)
|
19.46
|
%
|
14.45
|
%
|
(13.65
|
)%
|
5.76
|
%
|
33.77
|
%
|
||||||||||||
|
Ratios/Supplemental Data(6):
|
||||||||||||||||||||||||
|
Net assets, end of period (000 omitted)
|
$33,614
|
$32,067
|
$33,256
|
$34,250
|
$49,994
|
$68,839
|
||||||||||||||||||
|
Ratios (As a percentage of average daily net assets):
|
||||||||||||||||||||||||
|
Net expenses
|
1.85
|
%(5)
|
1.85
|
%
|
1.85
|
%
|
1.78
|
%
|
1.74
|
%
|
1.63
|
%
|
||||||||||||
|
Net expenses after custodian fee reduction
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
1.63
|
%
|
|||||||||||||||||
|
Net investment income
|
4.52
|
%(5)
|
1.57
|
%
|
1.84
|
%
|
1.56
|
%
|
1.23
|
%
|
1.75
|
%
|
||||||||||||
|
Portfolio turnover rate
|
26
|
%(4)
|
45
|
%
|
58
|
%
|
50
|
%
|
92
|
%
|
63
|
%
|
||||||||||||
|
For the six months ended June 30, 2014, and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
For the six months ended June 30, 2014, and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
|||||||||||||||||||||||
|
(1)
|
Computed using average shares outstanding.
|
|||||||||||||||||||||||
|
(2)
|
Less than $0.001 per share.
|
|||||||||||||||||||||||
|
(3)
|
Total 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.
|
|||||||||||||||||||||||
|
(4)
|
Not annualized.
|
|||||||||||||||||||||||
|
(5)
|
Annualized.
|
|||||||||||||||||||||||
|
(6)
|
For each of the periods presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income ratios would have been as follows:
|
|||||||||||||||||||||||
|
2014
|
2013
|
2012
|
2010
|
|||||||||||||||||||||
|
Ratios (As a percentage of average daily net assets):
|
||||||||||||||||||||||||
|
Expenses
|
2.02
|
%(5)
|
2.01
|
%
|
2.01
|
%
|
1.76
|
%
|
||||||||||||||||
|
Net investment income
|
4.35
|
%(5)
|
1.41
|
%
|
1.68
|
%
|
1.22
|
%
|
||||||||||||||||
| See Notes to Financial Statements. | 19 |
|
The Wright Managed Equity Trust
Notes to Financial Statements
|
1. Significant Accounting Policies
Wright Selected Blue Chip Equities Fund (“WSBC”), Wright Major Blue Chip Equities Fund (“WMBC”), and Wright International Blue Chip Equities Fund (“WIBC”) (each a “Fund” and collectively, the “Funds”) (the Funds constituting Wright Managed Equity Trust (the “Trust”)), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. The Funds seek to provide total return consisting of price appreciation and current income.
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 (“GAAP”).
A. Investment Valuations – Equity securities listed on a U.S. securities exchange generally are valued at the last sale price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and asked prices therefore on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ Global or Global Select Market generally are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and asked prices or, in the case of preferred equity securities that are not listed or traded in the over-the-counter market, by a third party pricing service. Investments in open-end mutual funds are valued at net asset value. Short-term debt securities with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. If short-term debt securities are acquired with a remaining maturity of more than sixty days, they will be valued by a third party pricing service. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by a third party pricing service. The daily valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges are monitored by the investment adviser and may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Funds in a manner that most fairly reflects the security’s value, or the amount that the Funds might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies, quotations or relevant information obtained from broker-dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B. Investment Transactions – Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.
C. Income – Dividend income is recorded on the ex-dividend date. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Funds are informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Funds’ understanding of applicable countries’ tax rules and rates. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium and accretion of discount.
D. Federal Taxes – Each Fund’s policy is to comply with the provisions of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable income and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. Foreign taxes are provided for based on WIBC’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. At December 31,
| 20 |
|
The Wright Managed Equity Trust
Notes to Financial Statements
|
WMBC and WIBC, for federal income tax purposes, have capital loss carryforwards of $3,708,193 and $51,755,977, respectively, which will reduce each Fund’s 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 distributions to shareholders, which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. Pursuant to the Code, such capital loss carryforwards will expire as follows:
|
December 31,
|
WMBC
|
WIBC
|
|
2016
|
$ -
|
$17,058,561
|
|
2017
|
3,708,193
|
34,697,416
|
As of June 30, 2014, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Funds’ federal tax returns filed in the 3-year period ended December 31, 2013, remains subject to examination by the Internal Revenue Service.
E. Expenses – The majority of expenses of the Trust are directly identifiable to an individual Fund. Expenses which are not readily identifiable to a specific Fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the Funds.
F. Redemption Fees – A shareholder who redeems or exchanges shares of WIBC within three months of purchase will incur a redemption fee of 2.00% of the current net asset value of shares redeemed, subject to certain limitations. The fee is charged for the benefit of the remaining shareholders and will be paid to WIBC to help offset transaction costs. The fee is accounted for as an addition to paid-in capital. The Fund reserves the right to modify the terms of or terminate the fee at any time. There are limited exceptions to the imposition of the redemption fee.
G. Foreign Currency Translation – Investment 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 denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. The portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
H. Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
I. Indemnifications – Under each Fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Funds, and shareholders are indemnified against personal liability for the obligations of the Funds. Additionally, in the normal course of business, the Funds enter into agreements with service providers that may contain indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
J. Interim Financial Statements – The interim financial statements relating to June 30, 2014, and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of Funds’ management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
| 21 |
|
The Wright Managed Equity Trust
Notes to Financial Statements
|
2. Distributions to Shareholders
It is the present policy of the Trust to make annual distributions of all or substantially all of the net investment income of the Funds and to distribute annually all or substantially all of the net realized capital gains (reduced by available capital loss carryforwards from prior years, if any) of the Funds. Distributions to shareholders are recorded on the ex-dividend date. Shareholders may reinvest income and capital gain distributions in additional shares of the same Fund at the net asset value as of the reinvestment date or, at the election of the shareholder, receive distributions in cash. The Funds distinguish between distributions on a tax basis and a financial reporting basis. GAAP requires that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
As of December 31, 2013, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
|
WSBC
|
WMBC
|
WIBC
|
||||||||||
|
Undistributed ordinary income
|
$
|
738,264
|
$
|
4,605
|
$
|
24,352
|
||||||
|
Undistributed long-term gain
|
1,758,196
|
-
|
-
|
|||||||||
|
Capital loss carryforward and post October losses
|
-
|
(3,708,193
|
)
|
(51,755,977
|
)
|
|||||||
|
Net unrealized appreciation
|
12,447,273
|
3,064,043
|
8,050,871
|
|||||||||
|
Total
|
$
|
14,943,733
|
$
|
(639,545
|
)
|
$
|
(43,680,754
|
)
|
The difference between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to wash sales and passive foreign investment company transactions.
3. Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Wright Investor Services, Inc. (“Wright”) as compensation for investment advisory services rendered to the Funds. The fees are computed at annual rates of the Funds' average daily net assets as noted below, and are payable monthly.
|
Annual Advisory Fee Rates
|
|||||
|
Fund
|
Under $100 Million
|
$100 Million to $250 Million
|
$250 Million to $500 Million
|
$500 Million to $1 Billion
|
Over $1 Billion
|
|
WSBC
|
0.60%
|
0.57%
|
0.54%
|
0.50%
|
0.45%
|
|
WMBC
|
0.60%
|
0.57%
|
0.54%
|
0.50%
|
0.45%
|
|
WIBC
|
0.80%
|
0.78%
|
0.76%
|
0.72%
|
0.67%
|
For the period ended June 30, 2014, the fee and the effective annual rate, as a percentage of average daily net assets for each of the Funds were as follows:
|
Fund
|
Investment Adviser Fee
|
Effective Annual Rate
|
|
WSBC
|
$119,144
|
0.60%
|
|
WMBC
|
$ 52,658
|
0.60%
|
|
WIBC
|
$129,718
|
0.80%
|
The administrator fee is earned by Wright for administering the business affairs of each Fund. The fee is computed at an annual rate of 0.17% of WIBC’s average daily net assets up to $100 million and 0.07% of average daily net assets over $100 million. The fee is computed at an annual rate of 0.12% of WSBC’s and WMBC’s average daily net assets up to $100 million and 0.07% of average daily net assets over $100 million. Atlantic Fund Administration, LLC (d/b/a Atlantic Fund Services) (“Atlantic”) serves as sub-administrator of the
| 22 |
|
The Wright Managed Equity Trust
Notes to Financial Statements
|
Funds to perform certain services of the administrator as may be agreed upon between the administrator and sub-administrator. The sub-administration fee is paid by Wright.
For the period ended June 30, 2014, the administrator fee for WSBC, WMBC and WIBC amounted to $23,829, $10,532 and $27,565, respectively.
Certain Trustees and officers of the Trust are Trustees or officers of the above organizations and/or of the Funds’ principal underwriter. Except as to Trustees of the Trust who are not employees of Atlantic or Wright, Trustees and officers receive remuneration for their services to the Trust out of the fees paid to Atlantic and Wright. The Trustees are compensated by the Trust in conjunction with the Wright Managed Income Trust, rather than on a per Trust or per Fund basis. Quarterly retainer fees are paid in the amount of $4,000 to the Lead Trustee, $3,500 to the Secretary of Independent Trustees, and $3,000 each to the remaining Trustees. In addition, each Trustee will be paid a fee of $1,500 for each regular Board meeting attended. Each Trustee is also reimbursed for all reasonable out-of-pocket expenses incurred in connection with his duties as a Trustee, including travel and related expenses incurred in attending Board meetings. The amount of Trustees’ fees attributable to each Fund is disclosed in each Fund’s Statement of Operations.
4. Distribution and Service Plans
The Trust has in effect a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 of the 1940 Act. The Plan provides that each Fund will pay Wright Investors’ Service Distributors, Inc. (“WISDI”), the principal underwriter, a wholly-owned subsidiary of The Winthrop Corporation and an affiliate of Wright, a distribution fee of 0.25% of the average daily net assets of each Fund for distribution services and facilities provided to the Funds by WISDI. Distribution fees paid or accrued to WISDI for the period ended June 30, 2014, for WSBC, WMBC and WIBC were $49,643, $21,941 and $40,537, 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 combined amount of service fees payable under the Service Plan and Rule 12b-1 distribution fees may not exceed 0.25% annually of each Fund’s average daily net assets. For the period ended June 30, 2014, the Funds did not accrue or pay any service fees.
Pursuant to an Expense Limitation Agreement, Wright and WISDI have agreed to waive all or a portion of their fees and reimburse expenses to the extent that total annual operating expenses exceed 1.40% of the average daily net assets of each of WSBC and WMBC and 1.85% of the average daily net assets of WIBC through April 30, 2015 (excluding interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund’s business). Thereafter, the waiver and reimbursement may be changed or terminated at any time. Pursuant to this agreement, Wright waived and/or reimbursed investment adviser fees and expenses of $16,674 for WMBC. WISDI waived distribution fees of $4,490, $21,941 and $26,542 for WSBC, WMBC and WIBC, respectively.
5. Investment Transactions
Purchases and sales of investments, other than short-term obligations, were as follows:
|
Six Months Ended June 30, 2014
|
|||
|
WSBC
|
WMBC
|
WIBC
|
|
|
Purchases
|
$13,263,419
|
$5,486,444
|
$9,169,447
|
|
Sales
|
$11,998,871
|
$6,066,666
|
$8,399,956
|
6. Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of
| 23 |
|
The Wright Managed Equity Trust
Notes to Financial Statements
|
beneficial interest (without par value). Transactions in Fund shares were as follows:
|
December 31, 2014
|
36525
|
41820
|
#
|
#
|
41639
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Six Months Ended
June 30, 2014
|
Year Ended
December 31, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
WSBC
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Sold
|
301,579
|
$
|
4,151,794
|
730,104
|
$
|
9,257,764
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Issued to shareholders in payment of distributions declared
|
143,314
|
1,939,045
|
277,835
|
3,678,541
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Redemptions
|
(295,087
|
)
|
(4,044,698
|
)
|
(763,906
|
)
|
(10,075,454
|
)
|
|||||||||||||||||||||||||||||||||||||||||||
|
Net increase
|
149,806
|
|
$
|
2,046,141
|
|
244,033
|
|
$
|
2,860,851
|
|
|||||||||||||||||||||||||||||||||||||||||
|
December 31, 2014
|
36525
|
41820
|
#
|
#
|
41639
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Six Months Ended
June 30, 2014
|
Year Ended
December 31, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
WMBC
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Sold
|
38,895
|
$
|
660,906
|
104,380
|
$
|
1,476,739
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Issued to shareholders in payment of distributions declared
|
251
|
4,324
|
5,961
|
96,441
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Redemptions
|
(72,530
|
)
|
(1,254,806
|
)
|
(297,734
|
)
|
(4,248,679
|
)
|
|||||||||||||||||||||||||||||||||||||||||||
|
Net decrease
|
(33,384
|
)
|
$
|
(589,576
|
)
|
(187,393
|
)
|
$
|
(2,675,499
|
)
|
|||||||||||||||||||||||||||||||||||||||||
|
December 31, 2014
|
36525
|
41820
|
#
|
#
|
41639
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Six Months Ended
June 30, 2014
|
Year Ended
December 31, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
WIBC
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Sold
|
134,192
|
$
|
2,160,120
|
196,159
|
$
|
2,948,227
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Issued to shareholders in payment of distributions declared
|
1,477
|
23,606
|
64,952
|
1,001,441
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Redemptions
|
(140,701
|
)
|
(2,303,060
|
)
|
(647,060
|
)
|
(9,611,638
|
)
|
|||||||||||||||||||||||||||||||||||||||||||
| Redemption fees | - | 329 | - | 722 | |||||||||||||||||||||||||||||||||||||||||||||||
|
Net decrease
|
(5,032
|
)
|
$
|
(119,005
|
)
|
(385,949
|
)
|
$
|
(5,661,248
|
)
|
|||||||||||||||||||||||||||||||||||||||||
7. Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of the investment securities owned at June 30, 2014, as computed on a federal income tax basis, were as follows:
|
Six Months Ended June 30, 2014
|
|||||||||
|
WSBC
|
WMBC
|
WIBC
|
|||||||
|
Aggregate cost
|
$
|
29,700,899
|
$
|
15,387,295
|
$
|
24,740,701
|
|||
|
Gross unrealized appreciation
|
$
|
11,908,811
|
$
|
3,340,811
|
$
|
8,869,967
|
|||
|
Gross unrealized depreciation
|
|
(370,602
|
)
|
|
(54,810
|
)
|
|
(172,814
|
)
|
|
Net unrealized appreciation
|
$
|
11,538,209
|
$
|
3,286,001
|
$
|
8,697,153
|
|||
| 24 |
|
The Wright Managed Equity Trust
Notes to Financial Statements
|
8. Line of Credit
The Funds participate with other funds managed by Wright in a committed $10 million unsecured line of credit agreement with Union Bank of California, N.A. (“Union 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 LIBOR rate. Because the line of credit is not available exclusively to each Fund, they may be unable to borrow some or all of the Funds’ requested amounts at any particular time. At June 30, 2014, WMBC had a balance outstanding pursuant to this line of credit of $130,241 at an interest rate of 1.16%.
The average borrowings and average interest rate (based on days with outstanding balances) for the period ended June 30, 2014, were as follows:
|
WSBC
|
WMBC
|
WIBC
|
|
|
Average borrowings
|
$114,835
|
$99,928
|
$196,695
|
|
Average interest rate
|
1.15%
|
1.16%
|
1.15%
|
9. Risks Associated with Foreign Investments
Investing in securities issued by companies whose principal business activities are outside the United States may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Certain foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of the Funds, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers and issuers than in the United States.
10. Fair Value Measurements
Under GAAP for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At June 30, 2014, the inputs used in valuing each Fund’s investments, which are carried at value, were as follows:
| 25 |
|
The Wright Managed Equity Trust
Notes to Financial Statements
|
WSBC
|
Asset Description
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
Total
|
||||
|
Equity Interests
|
$
|
41,150,867
|
$
|
-
|
$
|
-
|
$
|
41,150,867
|
|
Short-Term Investments
|
-
|
88,241
|
-
|
88,241
|
||||
|
Total Investments
|
$
|
41,150,867
|
$
|
88,241
|
$
|
-
|
$
|
41,239,108
|
WMBC
|
Asset Description
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
Total
|
||||
|
Equity Interests
|
$
|
18,673,296
|
$
|
-
|
$
|
-
|
$
|
18,673,296
|
|
Total Investments
|
$
|
18,673,296
|
$
|
-
|
$
|
-
|
$
|
18,673,296
|
WIBC
|
Asset Description
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
Total
|
||||
|
Equity Interests
|
$
|
33,305,271
|
$
|
-
|
$
|
-
|
$
|
33,305,271
|
|
Short-Term Investments
|
-
|
132,583
|
-
|
132,583
|
||||
|
Total Investments
|
$
|
33,305,271
|
$
|
132,583
|
$
|
-
|
$
|
33,437,854
|
The Level 1 values displayed in these tables under Equity Interests are Common Stock. Refer to each Fund’s Portfolio of Investments for a further breakout of each security by industry or country.
There were no transfers among Level 1, Level 2 and Level 3 for the period ended June 30, 2014.
11. Review for Subsequent Events
In connection with the preparation of the financial statements of the Funds as of and for the period ended June 30, 2014, events and transactions subsequent to June 30, 2014, have been evaluated by the Funds’ management for possible adjustment and/or disclosure. Management has not identified any subsequent events requiring financial statement disclosure as of the date these financial statements were issued.
| 26 |
|
Wright Total Return Bond Fund (WTRB)
Portfolio of Investments – As of June 30, 2014
|
AFA
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|
FIXED INCOME INVESTMENTS - 97.7%
|
|
COMMERCIAL MORTGAGE-BACKED SECURITIES - 7.8%
|
|
$
|
300,000
|
LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A4
|
5.372
|
%
|
09/15/39
|
$
|
324,922
|
||||||
|
287,353
|
Merrill Lynch Mortgage Trust, Series 2005-LC1, Class A4
|
5.291
|
%
|
(1)
|
01/12/44
|
|
302,478
|
||||||
|
309,019
|
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-2, Class A4
|
6.066
|
%
|
(1)
|
06/12/46
|
|
332,752
|
|
Total Commercial Mortgage-Backed Securities (identified cost, $894,505)
|
$
|
960,152
|
|
CORPORATE BONDS - 42.1%
|
|
COMMUNICATIONS EQUIPMENT - 0.5%
|
|||||||||||||
|
$
|
55,000
|
Vodafone Group PLC
|
6.150
|
%
|
02/27/37
|
$
|
65,568
|
||||||
|
CONSUMER STAPLES - 0.5%
|
|||||||||||||
|
$
|
60,000
|
Celgene Corp.
|
3.250
|
%
|
08/15/22
|
$
|
59,973
|
||||||
|
DIVERSIFIED FINANCIALS - 9.2%
|
|||||||||||||
|
$
|
70,000
|
Aflac, Inc.
|
3.625
|
%
|
06/15/23
|
$
|
71,580
|
||||||
|
27,000
|
Ameriprise Financial, Inc.
|
5.650
|
%
|
11/15/15
|
|
28,811
|
|||||||
|
75,000
|
Bank of America Corp.
|
6.050
|
%
|
05/16/16
|
|
81,612
|
|||||||
|
85,000
|
Bank of America Corp., MTN
|
5.000
|
%
|
05/13/21
|
|
95,015
|
|||||||
|
50,000
|
Citigroup, Inc.
|
5.375
|
%
|
08/09/20
|
|
57,373
|
|||||||
|
30,000
|
Eaton Vance Corp.
|
6.500
|
%
|
10/02/17
|
|
34,492
|
|||||||
|
95,000
|
General Electric Capital Corp., MTN, Series A
|
6.750
|
%
|
03/15/32
|
|
125,675
|
|||||||
|
155,000
|
Goldman Sachs Group, Inc. (The)
|
6.150
|
%
|
04/01/18
|
|
177,908
|
|||||||
|
120,000
|
JPMorgan Chase & Co.
|
6.300
|
%
|
04/23/19
|
|
142,029
|
|||||||
|
90,000
|
Morgan Stanley, GMTN
|
5.500
|
%
|
07/28/21
|
|
103,548
|
|||||||
|
70,000
|
Nomura Holdings, Inc.
|
5.000
|
%
|
03/04/15
|
|
71,974
|
|||||||
|
85,000
|
PNC Funding Corp.
|
4.250
|
%
|
09/21/15
|
|
88,774
|
|||||||
|
55,000
|
SunTrust Banks, Inc.
|
6.000
|
%
|
09/11/17
|
|
62,334
|
|||||||
|
ENERGY - 2.3%
|
|||||||||||||
|
$
|
55,000
|
Baker Hughes, Inc.
|
6.875
|
%
|
01/15/29
|
$
|
73,598
|
||||||
|
50,000
|
ONEOK Partners LP
|
6.850
|
%
|
10/15/37
|
|
63,204
|
|||||||
|
70,000
|
Peabody Energy Corp.
|
7.375
|
%
|
11/01/16
|
|
77,263
|
|||||||
|
55,000
|
Valero Energy Corp.
|
9.375
|
%
|
03/15/19
|
|
72,263
|
|||||||
|
FOOD, BEVERAGE & TOBACCO - 1.6%
|
|||||||||||||
|
$
|
13,000
|
Altria Group, Inc.
|
9.700
|
%
|
11/10/18
|
$
|
17,050
|
||||||
|
50,000
|
Ingredion, Inc.
|
4.625
|
%
|
11/01/20
|
|
53,949
|
|||||||
|
100,000
|
PepsiCo, Inc.
|
7.900
|
%
|
11/01/18
|
|
124,591
|
|||||||
|
HEALTH CARE EQUIPMENT & SERVICES - 2.4%
|
|||||||||||||
|
$
|
55,000
|
Cigna Corp.
|
2.750
|
%
|
11/15/16
|
$
|
57,151
|
||||||
|
75,000
|
Laboratory Corp. of America Holdings
|
3.125
|
%
|
05/15/16
|
|
78,151
|
|||||||
|
80,000
|
UnitedHealth Group, Inc.
|
6.000
|
%
|
02/15/18
|
|
92,376
|
|||||||
|
70,000
|
WellPoint, Inc.
|
4.350
|
%
|
08/15/20
|
|
76,495
|
|||||||
|
HOUSEHOLD & PERSONAL PRODUCTS - 0.6%
|
|||||||||||||
|
$
|
60,000
|
Estee Lauder Cos., Inc. (The)
|
6.000
|
%
|
05/15/37
|
$
|
73,505
|
||||||
|
INFORMATION SERVICES - 1.2%
|
|||||||||||||
|
$
|
85,000
|
Equifax, Inc.
|
4.450
|
%
|
12/01/14
|
$
|
86,376
|
||||||
|
50,000
|
Moody's Corp.
|
5.500
|
%
|
09/01/20
|
|
56,925
|
|||||||
| See Notes to Financial Statements. | 27 |
|
Wright Total Return Bond Fund (WTRB)
Portfolio of Investments – As of June 30, 2014
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|||||||||
|
INSURANCE - 2.9%
|
|||||||||||||
|
$
|
50,000
|
Loews Corp.
|
5.250
|
%
|
03/15/16
|
$
|
53,817
|
||||||
|
105,000
|
PartnerRe Finance B, LLC
|
5.500
|
%
|
06/01/20
|
|
119,585
|
|||||||
|
55,000
|
Principal Financial Group, Inc.
|
8.875
|
%
|
05/15/19
|
|
71,082
|
|||||||
|
50,000
|
Prudential Financial, Inc., MTN
|
4.500
|
%
|
11/15/20
|
|
55,188
|
|||||||
|
50,000
|
Prudential Financial, Inc., MTN, Series D
|
7.375
|
%
|
06/15/19
|
|
61,986
|
|||||||
|
MATERIALS - 2.4%
|
|||||||||||||
|
$
|
70,000
|
Dow Chemical Co. (The)
|
7.375
|
%
|
03/01/23
|
$
|
87,372
|
||||||
|
70,000
|
Greif, Inc.
|
6.750
|
%
|
02/01/17
|
|
78,050
|
|||||||
|
100,000
|
Lubrizol Corp.
|
8.875
|
%
|
02/01/19
|
|
128,554
|
|||||||
|
MEDIA - 2.5%
|
|||||||||||||
|
$
|
90,000
|
Comcast Cable Communications Holdings, Inc.
|
9.455
|
%
|
11/15/22
|
$
|
131,022
|
||||||
|
40,000
|
DIRECTV Holdings, LLC / DIRECTV Financing Co., Inc.
|
5.000
|
%
|
03/01/21
|
|
44,717
|
|||||||
|
45,000
|
McGraw Hill Financial, Inc.
|
5.900
|
%
|
11/15/17
|
|
49,975
|
|||||||
|
65,000
|
Time Warner Cos., Inc.
|
6.950
|
%
|
01/15/28
|
|
84,007
|
|||||||
|
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES - 0.8%
|
|||||||||||||
|
$
|
95,000
|
Thermo Fisher Scientific, Inc.
|
3.150
|
%
|
01/15/23
|
$
|
94,010
|
||||||
|
PIPELINES - 1.5%
|
|||||||||||||
|
$
|
60,000
|
Spectra Energy Capital, LLC
|
5.650
|
%
|
03/01/20
|
$
|
67,774
|
||||||
|
100,000
|
TransCanada PipeLines, Ltd.
|
6.500
|
%
|
08/15/18
|
|
118,864
|
|||||||
|
REAL ESTATE - 0.8%
|
|||||||||||||
|
$
|
100,000
|
Simon Property Group LP
|
2.750
|
%
|
02/01/23
|
$
|
96,785
|
||||||
|
RETAILING - 1.4%
|
|||||||||||||
|
$
|
95,000
|
Kohl's Corp.
|
4.000
|
%
|
11/01/21
|
$
|
99,160
|
||||||
|
72,000
|
L Brands, Inc.
|
5.250
|
%
|
11/01/14
|
|
73,296
|
|||||||
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.1%
|
|||||||||||||
|
$
|
115,000
|
Applied Materials, Inc.
|
7.125
|
%
|
10/15/17
|
$
|
134,490
|
||||||
|
SOFTWARE & SERVICES - 2.7%
|
|||||||||||||
|
$
|
60,000
|
Adobe Systems, Inc.
|
4.750
|
%
|
02/01/20
|
$
|
66,822
|
||||||
|
105,000
|
International Business Machines Corp.
|
7.625
|
%
|
10/15/18
|
|
129,946
|
|||||||
|
80,000
|
Oracle Corp.
|
5.375
|
%
|
07/15/40
|
|
91,277
|
|||||||
|
50,000
|
Symantec Corp.
|
4.200
|
%
|
09/15/20
|
|
51,949
|
|||||||
|
TELECOMMUNICATIONS - 1.0%
|
|||||||||||||
|
$
|
55,000
|
BellSouth Corp.
|
6.000
|
%
|
11/15/34
|
$
|
61,410
|
||||||
|
50,000
|
Verizon Communications, Inc.
|
7.750
|
%
|
12/01/30
|
|
68,749
|
|||||||
|
TRANSPORTATION – 1.2%
|
|||||||||||||
|
$
|
70,000
|
Burlington Northern Santa Fe, LLC
|
6.200
|
%
|
08/15/36
|
$
|
87,070
|
||||||
|
60,000
|
FedEx Corp.
|
4.000
|
%
|
01/15/24
|
|
62,656
|
|||||||
|
UTILITIES - 5.5%
|
|||||||||||||
|
$
|
110,000
|
Consolidated Edison Co. of New York, Inc.
|
7.125
|
%
|
12/01/18
|
$
|
133,780
|
||||||
|
90,000
|
Dominion Resources, Inc., Series E
|
6.300
|
%
|
03/15/33
|
|
111,836
|
|||||||
|
80,000
|
Exelon Generation Co., LLC
|
5.200
|
%
|
10/01/19
|
|
90,076
|
|||||||
|
115,000
|
NextEra Energy Capital Holdings, Inc., Series D
|
7.300
|
%
|
(1)
|
09/01/67
|
|
126,878
|
||||||
|
50,000
|
Pacific Gas & Electric Co.
|
8.250
|
%
|
10/15/18
|
|
62,531
|
|||||||
|
60,000
|
Public Service Electric & Gas Co., MTN
|
5.300
|
%
|
05/01/18
|
|
68,156
|
|||||||
|
75,000
|
Sempra Energy
|
6.500
|
%
|
06/01/16
|
|
82,906
|
|||||||
|
Total Corporate Bonds (identified cost, $4,651,647)
|
$
|
5,215,339
|
| See Notes to Financial Statements. | 28 |
|
Wright Total Return Bond Fund (WTRB)
Portfolio of Investments – As of June 30, 2014
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|
U.S. GOVERNMENT INTERESTS - 47.8%
|
|
AGENCY MORTGAGE-BACKED SECURITIES - 35.3%
|
|||||||||||||
|
$
|
46,713
|
FHLMC Gold Pool #A32600
|
5.500
|
%
|
05/01/35
|
$
|
52,117
|
||||||
|
14,737
|
FHLMC Gold Pool #C01646
|
6.000
|
%
|
09/01/33
|
|
16,778
|
|||||||
|
19,696
|
FHLMC Gold Pool #C27663
|
7.000
|
%
|
06/01/29
|
|
20,144
|
|||||||
|
81,776
|
FHLMC Gold Pool #C47318
|
7.000
|
%
|
09/01/29
|
|
95,387
|
|||||||
|
53,358
|
FHLMC Gold Pool #C66878
|
6.500
|
%
|
05/01/32
|
|
60,636
|
|||||||
|
65,477
|
FHLMC Gold Pool #C91046
|
6.500
|
%
|
05/01/27
|
|
73,837
|
|||||||
|
10,118
|
FHLMC Gold Pool #D66753
|
6.000
|
%
|
10/01/23
|
|
11,362
|
|||||||
|
608
|
FHLMC Gold Pool #E00903
|
7.000
|
%
|
10/01/15
|
|
623
|
|||||||
|
75,963
|
FHLMC Gold Pool #G01035
|
6.000
|
%
|
05/01/29
|
|
86,383
|
|||||||
|
20,458
|
FHLMC Gold Pool #G02478
|
5.500
|
%
|
12/01/36
|
|
22,807
|
|||||||
|
47,116
|
FHLMC Gold Pool #N30514
|
5.500
|
%
|
11/01/28
|
|
52,642
|
|||||||
|
169,745
|
FHLMC Gold Pool #P00024
|
7.000
|
%
|
09/01/32
|
|
184,921
|
|||||||
|
38,268
|
FHLMC Gold Pool #P50064
|
7.000
|
%
|
09/01/30
|
|
43,434
|
|||||||
|
47,056
|
FHLMC Pool #1B1291
|
2.378
|
%
|
(1)
|
11/01/33
|
|
49,967
|
||||||
|
129,251
|
FHLMC Pool #1G0233
|
2.261
|
%
|
(1)
|
05/01/35
|
|
137,439
|
||||||
|
11,209
|
FHLMC Pool #781071
|
2.534
|
%
|
(1)
|
11/01/33
|
|
11,980
|
||||||
|
7,505
|
FHLMC Pool #781804
|
4.965
|
%
|
(1)
|
07/01/34
|
|
7,779
|
||||||
|
3,791
|
FHLMC Pool #781884
|
5.150
|
%
|
(1)
|
08/01/34
|
|
3,966
|
||||||
|
10,380
|
FHLMC Pool #782862
|
5.106
|
%
|
(1)
|
11/01/34
|
|
10,784
|
||||||
|
104,670
|
FHLMC, Series 1983, Class Z
|
6.500
|
%
|
12/15/23
|
|
116,392
|
|||||||
|
87,158
|
FHLMC, Series 2044, Class PE
|
6.500
|
%
|
04/15/28
|
|
97,599
|
|||||||
|
406,580
|
FHLMC, Series 2627, Class MW
|
5.000
|
%
|
06/15/23
|
|
438,972
|
|||||||
|
70,251
|
FNMA Pool #253057
|
8.000
|
%
|
12/01/29
|
|
79,474
|
|||||||
|
1,715
|
FNMA Pool #479477
|
6.000
|
%
|
01/01/29
|
|
1,932
|
|||||||
|
3,019
|
FNMA Pool #489357
|
6.500
|
%
|
03/01/29
|
|
3,411
|
|||||||
|
8,704
|
FNMA Pool #535332
|
8.500
|
%
|
04/01/30
|
|
10,854
|
|||||||
|
16,281
|
FNMA Pool #545782
|
7.000
|
%
|
07/01/32
|
|
18,808
|
|||||||
|
10,565
|
FNMA Pool #597396
|
6.500
|
%
|
09/01/31
|
|
11,948
|
|||||||
|
39,194
|
FNMA Pool #621284
|
6.500
|
%
|
12/01/31
|
|
45,373
|
|||||||
|
11,630
|
FNMA Pool #725866
|
4.500
|
%
|
09/01/34
|
|
12,622
|
|||||||
|
38,729
|
FNMA Pool #738630
|
5.500
|
%
|
11/01/33
|
|
43,336
|
|||||||
|
122,642
|
FNMA Pool #745001
|
6.500
|
%
|
09/01/35
|
|
138,397
|
|||||||
|
55,505
|
FNMA Pool #745467
|
2.520
|
%
|
(1)
|
04/01/36
|
|
59,169
|
||||||
|
93,346
|
FNMA Pool #745755
|
5.000
|
%
|
12/01/35
|
|
103,989
|
|||||||
|
35,483
|
FNMA Pool #747529
|
4.500
|
%
|
10/01/33
|
|
38,564
|
|||||||
|
302,014
|
FNMA Pool #781893
|
4.500
|
%
|
11/01/31
|
|
330,144
|
|||||||
|
15,368
|
FNMA Pool #809888
|
4.500
|
%
|
03/01/35
|
|
16,677
|
|||||||
|
225,382
|
FNMA Pool #888366
|
7.000
|
%
|
04/01/37
|
|
251,818
|
|||||||
|
206,434
|
FNMA Pool #888367
|
7.000
|
%
|
03/01/37
|
|
230,462
|
|||||||
|
145,393
|
FNMA Pool #888417
|
6.500
|
%
|
01/01/36
|
|
165,890
|
|||||||
|
9,058
|
FNMA Pool #906455
|
5.917
|
%
|
(1)
|
01/01/37
|
|
9,685
|
||||||
|
11,282
|
GNMA I Pool #376400
|
6.500
|
%
|
02/15/24
|
|
12,827
|
|||||||
|
16,108
|
GNMA I Pool #379982
|
7.000
|
%
|
02/15/24
|
|
17,574
|
|||||||
|
96,057
|
GNMA I Pool #393347
|
7.500
|
%
|
02/15/27
|
|
108,143
|
|||||||
|
34,182
|
GNMA I Pool #410081
|
8.000
|
%
|
08/15/25
|
|
38,890
|
|||||||
|
29,494
|
GNMA I Pool #427199
|
7.000
|
%
|
12/15/27
|
|
30,885
|
|||||||
|
19,726
|
GNMA I Pool #448490
|
7.500
|
%
|
03/15/27
|
|
20,931
|
|||||||
|
38,675
|
GNMA I Pool #458762
|
6.500
|
%
|
01/15/28
|
|
44,102
|
|||||||
|
16,857
|
GNMA I Pool #460726
|
6.500
|
%
|
12/15/27
|
|
19,166
|
|||||||
|
7,855
|
GNMA I Pool #510706
|
8.000
|
%
|
11/15/29
|
|
8,733
|
|||||||
|
11,318
|
GNMA I Pool #581536
|
5.500
|
%
|
06/15/33
|
|
12,752
|
|||||||
|
53,565
|
GNMA II Pool #002630
|
6.500
|
%
|
08/20/28
|
|
62,264
|
|||||||
|
2,897
|
GNMA II Pool #002909
|
8.000
|
%
|
04/20/30
|
|
3,530
|
|||||||
| See Notes to Financial Statements. | 29 |
|
Wright Total Return Bond Fund (WTRB)
Portfolio of Investments – As of June 30, 2014
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|||||||||
|
AGENCY MORTGAGE-BACKED SECURITIES (CONTINUED)
|
|||||||||||||
|
7,175
|
GNMA II Pool #002972
|
7.500
|
%
|
09/20/30
|
$
|
8,632
|
|||||||
|
2,734
|
GNMA II Pool #002973
|
8.000
|
%
|
09/20/30
|
|
3,371
|
|||||||
|
24,159
|
GNMA II Pool #003095
|
6.500
|
%
|
06/20/31
|
|
28,213
|
|||||||
|
170,468
|
GNMA II Pool #004841
|
8.000
|
%
|
08/20/31
|
|
206,728
|
|||||||
|
548,545
|
GNMA, Series 2010-44, Class NK
|
4.000
|
%
|
10/20/37
|
|
575,929
|
|||||||
|
U.S. TREASURIES - 12.5%
|
|||||||||||||
|
$
|
590,000
|
U.S. Treasury Bond
|
3.125
|
%
|
02/15/42
|
$
|
571,009
|
||||||
|
90,000
|
U.S. Treasury Note
|
2.625
|
%
|
11/15/20
|
|
93,501
|
|||||||
|
1,070,000
|
U.S. Treasury Strip Coupon
|
2.520-2.892
|
%
|
(2)
|
05/15/22
|
|
887,166
|
||||||
|
Total U.S. Government Interests (identified cost, $5,720,830)
|
$
|
5,922,848
|
|
TOTAL FIXED INCOME INVESTMENTS (identified cost, $11,266,982) — 97.7%
|
$
|
12,098,339
|
|
SHORT-TERM INVESTMENTS - 1.5%
|
|
$
|
177,274
|
Fidelity Government Money Market Fund, 0.01% (1)
|
$
|
177,274
|
|
TOTAL SHORT-TERM INVESTMENTS (identified cost, $177,274) — 1.5%
|
$
|
177,274
|
|
TOTAL INVESTMENTS (identified cost, $11,444,256) — 99.2%
|
$
|
12,275,613
|
|
OTHER ASSETS, IN EXCESS OF LIABILITIES — 0.8%
|
103,811
|
|
NET ASSETS — 100.0%
|
$
|
12,379,424
|
FHLMC — Federal Home Loan Mortgage Corporation
FNMA — Federal National Mortgage Association
GMTN — Global Medium Term Note
GNMA — Government National Mortgage Association
LLC — Limited Liability Company
LP — Limited Partnership
MTN — Medium Term Note
PLC — Public Limited Company
|
(1)
|
Variable rate security. Rate presented is as of June 30, 2014.
|
|
(2)
|
Rate presented is yield to maturity.
|
|
Portfolio Composition by Security Type
|
|
|
% of total investments at June 30, 2014
|
|
|
Commercial Mortgage-Backed Securities
|
7.8%
|
|
Corporate Bonds
|
42.1%
|
|
U.S. Government Interests
|
35.3%
|
|
Short-Term Investments
|
1.5%
|
| See Notes to Financial Statements. | 30 |
|
Wright Total Return Bond Fund (WTRB)
|
|
STATEMENT OF ASSETS AND LIABILITIES
|
STATEMENT OF OPERATIONS
|
|||||||||||||
|
ASSETS:
|
FALSE
|
INVESTMENT INCOME (Note 1C)
|
FALSE
|
|||||||||||
|
Investments, at value
|
Interest income
|
$
|
267,157
|
|||||||||||
|
(identified cost $11,444,256) (Note 1A)
|
$
|
12,275,613
|
######
|
1.00E+07
|
Dividend income
|
5
|
||||||||
|
Receivable for fund shares sold
|
1,146
|
Total investment income
|
$
|
267,162
|
||||||||||
|
Receivable for investment securities sold
|
1,159
|
|||||||||||||
|
Dividends and interest receivable
|
97,866
|
Expenses –
|
||||||||||||
|
Prepaid expenses and other assets
|
20,853
|
Investment adviser fee (Note 3)
|
$
|
29,919
|
||||||||||
|
Total assets
|
$
|
12,396,637
|
Administrator fee (Note 3)
|
4,654
|
||||||||||
|
Trustee expense (Note 3)
|
6,732
|
|||||||||||||
|
LIABILITIES:
|
Custodian fee
|
2,063
|
||||||||||||
|
Payable for fund shares reacquired
|
$
|
805
|
Accountant fee
|
17,744
|
||||||||||
|
Distributions payable
|
6,408
|
Pricing
|
12,674
|
|||||||||||
|
Accrued expenses and other liabilities
|
10,000
|
Distribution expenses (Note 4)
|
16,621
|
|||||||||||
|
Total liabilities
|
$
|
17,213
|
Transfer agent fee
|
10,662
|
||||||||||
|
NET ASSETS
|
$
|
12,379,424
|
Printing
|
18
|
||||||||||
|
Shareholder communications
|
2,246
|
|||||||||||||
|
NET ASSETS CONSIST OF:
|
Audit services
|
9,559
|
||||||||||||
|
Paid-in capital
|
$
|
13,145,858
|
Legal services
|
2,185
|
||||||||||
|
Accumulated net realized loss on investments
|
(1,545,706
|
)
|
Compliance services
|
2,596
|
||||||||||
|
Distributions in excess of net investment income
|
(52,085
|
)
|
Registration costs
|
10,080
|
||||||||||
|
Unrealized appreciation on investments
|
831,357
|
Interest expense (Note 8)
|
179
|
|||||||||||
|
Net assets applicable to outstanding shares
|
$
|
12,379,424
|
Miscellaneous
|
10,626
|
||||||||||
|
Total expenses
|
$
|
138,558
|
||||||||||||
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
975,501
|
|||||||||||||
|
Deduct –
|
||||||||||||||
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
$
|
12.69
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
$
|
(75,218
|
)
|
||||||||
|
Net expenses
|
$
|
63,340
|
||||||||||||
|
Net investment income
|
$
|
203,822
|
||||||||||||
|
|
||||||||||||||
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
|
|||||||||||||
|
Net realized gain on investment transactions
|
$
|
97,212
|
||||||||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
158,481
|
|||||||||||||
|
Net realized and unrealized gain on investments
|
$
|
255,693
|
||||||||||||
|
Net increase in net assets from operations
|
$
|
459,515
|
||||||||||||
| See Notes to Financial Statements. | 31 |
|
Wright Total Return Bond Fund (WTRB)
|
|
Six Months Ended
|
Year Ended
|
|||||||||
|
STATEMENTS OF CHANGES IN NET ASSETS
|
June 30, 2014
|
December 31, 2013
|
||||||||
|
INCREASE (DECREASE) IN NET ASSETS:
|
||||||||||
|
From operations –
|
||||||||||
|
Net investment income
|
$
|
203,822
|
$
|
518,259
|
||||||
|
0
|
Net realized gain on investment transactions
|
97,212
|
177,389
|
|||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
158,481
|
(1,134,346
|
)
|
|||||||
|
Net increase (decrease) in net assets from operations
|
$
|
459,515
|
$
|
(438,698
|
)
|
|||||
|
Distributions to shareholders (Note 2)
|
||||||||||
|
From net investment income
|
$
|
(255,907
|
)
|
$
|
(665,626
|
)
|
||||
|
Total distributions
|
$
|
(255,907
|
)
|
$
|
(665,626
|
)
|
||||
|
Net decrease in net assets resulting from fund share transactions (Note 6)
|
$
|
(3,266,593
|
)
|
$
|
(7,939,140
|
)
|
||||
|
Net decrease in net assets
|
$
|
(3,062,985
|
)
|
$
|
(9,043,464
|
)
|
||||
|
##
|
||||||||||
|
NET ASSETS:
|
||||||||||
|
At beginning of period
|
15,442,409
|
24,485,873
|
||||||||
|
At end of period
|
$
|
12,379,424
|
$
|
15,442,409
|
||||||
|
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD
|
$
|
(52,085
|
)
|
$
|
-
|
|||||
| See Notes to Financial Statements. | 32 |
|
Wright Total Return Bond Fund (WTRB)
|
|
These financial highlights reflect selected data for a share outstanding throughout each period.
|
||||||||||||||||||||
|
Six Months Ended
June 30,
|
Years Ended December 31,
|
|||||||||||||||||||
|
FINANCIAL HIGHLIGHTS
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||
|
Net asset value, beginning of period
|
$
|
12.520
|
$
|
13.300
|
$
|
13.220
|
$
|
12.890
|
$
|
12.620
|
$
|
11.990
|
||||||||
|
Income (loss) from investment operations:
|
||||||||||||||||||||
|
Net investment income (1)
|
0.192
|
0.378
|
0.339
|
0.420
|
0.437
|
0.558
|
||||||||||||||
|
Net realized and unrealized gain (loss)
|
0.220
|
(0.673
|
)
|
0.206
|
0.425
|
0.336
|
0.676
|
|||||||||||||
|
Total income (loss) from investment operations
|
0.412
|
(0.295
|
)
|
0.545
|
0.845
|
0.773
|
1.234
|
|||||||||||||
|
Less distributions:
|
||||||||||||||||||||
|
From net investment income
|
(0.242
|
)
|
(0.485
|
)
|
(0.465
|
)
|
(0.515
|
)
|
(0.503
|
)
|
(0.604
|
)
|
||||||||
|
Net asset value, end of period
|
$
|
12.690
|
$
|
12.520
|
$
|
13.300
|
$
|
13.220
|
$
|
12.890
|
$
|
12.620
|
||||||||
|
Total Return(2)
|
3.31
|
%(3)
|
(2.25
|
)%
|
4.16
|
%
|
6.68
|
%
|
6.18
|
%
|
10.53
|
%
|
||||||||
|
Ratios/Supplemental Data(5):
|
||||||||||||||||||||
|
Net assets, end of period (000 omitted)
|
$12,379
|
$15,442
|
$24,486
|
$30,623
|
$31,530
|
$24,556
|
||||||||||||||
|
Ratios (As a percentage of average daily net assets):
|
||||||||||||||||||||
|
Net expenses
|
0.95
|
%(4)
|
0.95
|
%
|
0.95
|
%
|
0.95
|
%
|
0.83
|
%
|
0.70
|
%
|
||||||||
|
Net expenses after custodian fee reduction
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
0.70
|
%
|
|||||||||||||
|
Net investment income
|
3.07
|
%(4)
|
2.93
|
%
|
2.54
|
%
|
3.22
|
%
|
3.38
|
%
|
4.53
|
%
|
||||||||
|
Portfolio turnover rate
|
7
|
%(3)
|
46
|
%
|
68
|
%
|
55
|
%
|
119
|
%
|
61
|
%
|
||||||||
|
For the six months ended June 30, 2014, and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
For the six months ended June 30, 2014, and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
|||||||||||||||||||
|
(1)
|
Computed using average shares outstanding.
|
|||||||||||||||||||
|
(2)
|
Total 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)
|
Not annualized.
|
|||||||||||||||||||
|
(4)
|
Annualized.
|
|||||||||||||||||||
|
(5)
|
For each of the periods presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income ratios would have been as follows:
|
|||||||||||||||||||
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||
|
Ratios (As a percentage of average daily net assets):
|
||||||||||||||||||||
|
Expenses
|
2.08
|
%(4)
|
1.80
|
%
|
1.41
|
%
|
1.37
|
%
|
1.43
|
%
|
1.55
|
%
|
||||||||
|
Expenses after custodian fee reduction
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
1.55
|
%
|
|||||||||||||
|
Net investment income
|
1.94
|
%(4)
|
2.08
|
%
|
2.08
|
%
|
2.80
|
%
|
2.78
|
%
|
3.68
|
%
|
||||||||
| See Notes to Financial Statements. | 33 |
|
Wright Current Income Fund (WCIF)
Portfolio of Investments – As of June 30, 2014
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|
FIXED INCOME INVESTMENTS - 96.7%
|
|
AGENCY MORTGAGE-BACKED SECURITIES - 96.7%
|
|||||||||||||
|
$
|
222,145
|
FHLMC Gold Pool #A85905
|
5.000
|
%
|
05/01/39
|
$
|
248,234
|
||||||
|
574,689
|
FHLMC Gold Pool #A88945
|
4.000
|
%
|
08/01/39
|
|
611,152
|
|||||||
|
11,939
|
FHLMC Gold Pool #C00548
|
7.000
|
%
|
08/01/27
|
|
13,820
|
|||||||
|
33,503
|
FHLMC Gold Pool #C00778
|
7.000
|
%
|
06/01/29
|
|
38,790
|
|||||||
|
171,243
|
FHLMC Gold Pool #C01375
|
6.500
|
%
|
07/01/32
|
|
193,384
|
|||||||
|
123,240
|
FHLMC Gold Pool #C91034
|
6.000
|
%
|
06/01/27
|
|
140,114
|
|||||||
|
13,173
|
FHLMC Gold Pool #D81642
|
7.500
|
%
|
08/01/27
|
|
13,562
|
|||||||
|
43,111
|
FHLMC Gold Pool #D82572
|
7.000
|
%
|
09/01/27
|
|
48,342
|
|||||||
|
231
|
FHLMC Gold Pool #E00721
|
6.500
|
%
|
07/01/14
|
|
231
|
|||||||
|
6,178
|
FHLMC Gold Pool #E81704
|
8.500
|
%
|
05/01/15
|
|
6,283
|
|||||||
|
186,587
|
FHLMC Gold Pool #G00892
|
6.500
|
%
|
12/01/27
|
|
212,732
|
|||||||
|
93,621
|
FHLMC Gold Pool #G02809
|
6.500
|
%
|
05/01/36
|
|
105,571
|
|||||||
|
66,859
|
FHLMC Gold Pool #G04710
|
6.000
|
%
|
09/01/38
|
|
75,747
|
|||||||
|
91,454
|
FHLMC Gold Pool #G08012
|
6.500
|
%
|
09/01/34
|
|
103,237
|
|||||||
|
194,468
|
FHLMC Gold Pool #G08022
|
6.000
|
%
|
11/01/34
|
|
221,401
|
|||||||
|
163,347
|
FHLMC Gold Pool #G08047
|
6.000
|
%
|
03/01/35
|
|
185,935
|
|||||||
|
802,206
|
FHLMC Gold Pool #G08378
|
6.000
|
%
|
10/01/39
|
|
902,083
|
|||||||
|
703,697
|
FHLMC Gold Pool #G30482
|
4.500
|
%
|
05/01/30
|
|
766,318
|
|||||||
|
137,751
|
FHLMC Gold Pool #G80111
|
7.300
|
%
|
12/17/22
|
|
152,666
|
|||||||
|
27,129
|
FHLMC Gold Pool #H09098
|
6.500
|
%
|
10/01/37
|
|
28,887
|
|||||||
|
169,745
|
FHLMC Gold Pool #P00024
|
7.000
|
%
|
09/01/32
|
|
184,921
|
|||||||
|
116,319
|
FHLMC Gold Pool #P50019
|
7.000
|
%
|
07/01/24
|
|
132,022
|
|||||||
|
1,051,449
|
FHLMC Gold Pool #P50079
|
5.000
|
%
|
07/01/33
|
|
1,130,758
|
|||||||
|
264,093
|
FHLMC Gold Pool #T30126
|
5.550
|
%
|
07/01/37
|
|
308,609
|
|||||||
|
244,351
|
FHLMC Gold Pool #T30133
|
5.550
|
%
|
07/01/37
|
|
287,278
|
|||||||
|
595,475
|
FHLMC Gold Pool #T60798
|
3.500
|
%
|
07/01/42
|
|
607,311
|
|||||||
|
232,334
|
FHLMC Gold Pool #U30400
|
5.550
|
%
|
06/01/37
|
|
273,468
|
|||||||
|
366,961
|
FHLMC, Series 2097, Class PZ
|
6.000
|
%
|
11/15/28
|
|
410,660
|
|||||||
|
56,898
|
FHLMC, Series 2176, Class OJ
|
7.000
|
%
|
08/15/29
|
|
65,856
|
|||||||
|
39,930
|
FHLMC, Series 2201, Class C
|
8.000
|
%
|
11/15/29
|
|
46,636
|
|||||||
|
177,785
|
FHLMC, Series 2218, Class ZB
|
6.000
|
%
|
03/15/30
|
|
199,296
|
|||||||
|
83,348
|
FHLMC, Series 2259, Class ZM
|
7.000
|
%
|
10/15/30
|
|
95,968
|
|||||||
|
45,671
|
FHLMC, Series 2576, Class HC
|
5.500
|
%
|
03/15/33
|
|
50,048
|
|||||||
|
143,134
|
FHLMC, Series 2802, Class OH
|
6.000
|
%
|
05/15/34
|
|
158,263
|
|||||||
|
391,752
|
FHLMC, Series 3033, Class WY
|
5.500
|
%
|
09/15/35
|
|
433,409
|
|||||||
|
161,131
|
FHLMC, Series 3072, Class DL
|
6.000
|
%
|
02/15/35
|
|
182,467
|
|||||||
|
93,748
|
FHLMC, Series 3255, Class QE
|
5.500
|
%
|
12/15/36
|
|
102,814
|
|||||||
|
128,163
|
FHLMC, Series 3641, Class TB
|
4.500
|
%
|
03/15/40
|
|
137,842
|
|||||||
|
108,025
|
FHLMC, Series 3814, Class B
|
3.000
|
%
|
02/15/26
|
|
109,040
|
|||||||
|
858,475
|
FHLMC, Series 3969, Class JY
|
4.500
|
%
|
12/15/41
|
|
905,944
|
|||||||
|
163,594
|
FHLMC, Series 4011, Class DA
|
4.000
|
%
|
09/15/41
|
|
161,175
|
|||||||
|
1,538,874
|
FHLMC, Series 4011, Class DB
|
4.000
|
%
|
09/15/41
|
|
1,529,335
|
|||||||
|
345,126
|
FHLMC, Series 4097, Class VT
|
3.500
|
%
|
08/15/25
|
|
365,437
|
|||||||
|
93,254
|
FHLMC, Series 4103, Class DV
|
3.000
|
%
|
11/15/25
|
|
95,748
|
|||||||
|
1,889,168
|
FHLMC, Series 4142, Class PN
|
2.500
|
%
|
12/15/32
|
|
1,798,299
|
|||||||
|
120,151
|
FHLMC-GNMA, Series 15, Class L
|
7.000
|
%
|
07/25/23
|
|
135,038
|
|||||||
|
43,438
|
FHLMC-GNMA, Series 23, Class KZ
|
6.500
|
%
|
11/25/23
|
|
48,637
|
|||||||
|
74,648
|
FHLMC-GNMA, Series 4, Class D
|
8.000
|
%
|
12/25/22
|
|
85,130
|
|||||||
|
336,154
|
FNMA Pool #252034
|
7.000
|
%
|
09/01/28
|
|
390,036
|
|||||||
|
62,229
|
FNMA Pool #252215
|
6.000
|
%
|
11/01/28
|
|
70,927
|
|||||||
|
449,984
|
FNMA Pool #256182
|
6.000
|
%
|
03/01/36
|
|
504,294
|
|||||||
|
424,223
|
FNMA Pool #256677
|
6.000
|
%
|
04/01/27
|
|
478,251
|
|||||||
|
65,409
|
FNMA Pool #256972
|
6.000
|
%
|
11/01/37
|
|
71,789
|
|||||||
| See Notes to Financial Statements. | 34 |
|
Wright Current Income Fund (WCIF)
Portfolio of Investments – As of June 30, 2014
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|||||||||
|
$
|
402,447
|
FNMA Pool #257138
|
5.000
|
%
|
03/01/38
|
$
|
437,776
|
||||||
|
15,678
|
FNMA Pool #535131
|
6.000
|
%
|
03/01/29
|
|
17,878
|
|||||||
|
90,083
|
FNMA Pool #594207
|
6.500
|
%
|
02/01/31
|
|
101,224
|
|||||||
|
40,227
|
FNMA Pool #673315
|
5.500
|
%
|
11/01/32
|
|
45,076
|
|||||||
|
179,614
|
FNMA Pool #721255
|
5.500
|
%
|
07/01/33
|
|
201,868
|
|||||||
|
55,554
|
FNMA Pool #733750
|
6.310
|
%
|
10/01/32
|
|
62,571
|
|||||||
|
195,905
|
FNMA Pool #735861
|
6.500
|
%
|
09/01/33
|
|
226,177
|
|||||||
|
245,753
|
FNMA Pool #745001
|
6.500
|
%
|
09/01/35
|
|
277,321
|
|||||||
|
428,750
|
FNMA Pool #745318
|
5.000
|
%
|
12/01/34
|
|
478,958
|
|||||||
|
33,344
|
FNMA Pool #745630
|
5.500
|
%
|
01/01/29
|
|
37,310
|
|||||||
|
88,550
|
FNMA Pool #801357
|
5.500
|
%
|
08/01/34
|
|
99,655
|
|||||||
|
467,675
|
FNMA Pool #801506
|
4.750
|
%
|
09/01/34
|
|
508,618
|
|||||||
|
110,457
|
FNMA Pool #813839
|
6.000
|
%
|
11/01/34
|
|
121,513
|
|||||||
|
492,408
|
FNMA Pool #819457
|
4.750
|
%
|
02/01/35
|
|
535,616
|
|||||||
|
933,585
|
FNMA Pool #846323
|
4.250
|
%
|
11/01/35
|
|
1,001,249
|
|||||||
|
609,862
|
FNMA Pool #851762
|
4.250
|
%
|
01/01/36
|
|
648,432
|
|||||||
|
95,510
|
FNMA Pool #871394
|
7.000
|
%
|
04/01/21
|
|
103,816
|
|||||||
|
159,165
|
FNMA Pool #888211
|
7.000
|
%
|
08/01/36
|
|
184,806
|
|||||||
|
46,514
|
FNMA Pool #888367
|
7.000
|
%
|
03/01/37
|
|
51,928
|
|||||||
|
98,524
|
FNMA Pool #888534
|
5.000
|
%
|
08/01/37
|
|
107,197
|
|||||||
|
1,306,754
|
FNMA Pool #891367
|
4.750
|
%
|
04/01/36
|
|
1,430,231
|
|||||||
|
257,614
|
FNMA Pool #908160
|
5.500
|
%
|
12/01/36
|
|
279,694
|
|||||||
|
258,096
|
FNMA Pool #930504
|
5.000
|
%
|
02/01/39
|
|
283,764
|
|||||||
|
98,257
|
FNMA Pool #930664
|
6.500
|
%
|
03/01/39
|
|
110,482
|
|||||||
|
582,943
|
FNMA Pool #940441
|
5.780
|
%
|
03/01/37
|
|
652,279
|
|||||||
|
42,455
|
FNMA Pool #954957
|
6.000
|
%
|
10/01/37
|
|
46,522
|
|||||||
|
94,051
|
FNMA Pool #995346
|
6.500
|
%
|
09/01/36
|
|
106,115
|
|||||||
|
253,227
|
FNMA Pool #995656
|
7.000
|
%
|
06/01/33
|
|
292,893
|
|||||||
|
582,532
|
FNMA Pool #AD0329
|
6.500
|
%
|
09/01/28
|
|
657,320
|
|||||||
|
117,762
|
FNMA Pool #AD0756
|
6.500
|
%
|
11/01/28
|
|
132,865
|
|||||||
|
944,122
|
FNMA Pool #AI0108
|
5.000
|
%
|
04/01/41
|
|
1,063,586
|
|||||||
|
467,454
|
FNMA Pool #AL3036
|
6.000
|
%
|
02/01/38
|
|
530,210
|
|||||||
|
419,670
|
FNMA Pool #MA0559
|
5.000
|
%
|
09/01/30
|
|
467,468
|
|||||||
|
189,000
|
FNMA Whole Loan, Series 2003-W17, Class 1A7
|
5.750
|
%
|
08/25/33
|
|
205,843
|
|||||||
|
41,041
|
FNMA Whole Loan, Series 2003-W18, Class 1A6
|
5.370
|
%
|
08/25/43
|
|
41,823
|
|||||||
|
308,325
|
FNMA Whole Loan, Series 2004-W11, Class 1A1
|
6.000
|
%
|
05/25/44
|
|
361,255
|
|||||||
|
215,291
|
FNMA, Series 2001-52, Class XZ
|
6.500
|
%
|
10/25/31
|
|
247,073
|
|||||||
|
98,686
|
FNMA, Series 2001-52, Class YZ
|
6.500
|
%
|
10/25/31
|
|
110,918
|
|||||||
|
90,097
|
FNMA, Series 2002-15, Class QH
|
6.000
|
%
|
04/25/32
|
|
99,771
|
|||||||
|
84,214
|
FNMA, Series 2003-30, Class JQ
|
5.500
|
%
|
04/25/33
|
|
92,876
|
|||||||
|
417,528
|
FNMA, Series 2003-32, Class BZ
|
6.000
|
%
|
11/25/32
|
|
467,141
|
|||||||
|
228,106
|
FNMA, Series 2004-17, Class H
|
5.500
|
%
|
04/25/34
|
|
254,559
|
|||||||
|
285,000
|
FNMA, Series 2004-25, Class LC
|
5.500
|
%
|
04/25/34
|
|
308,361
|
|||||||
|
256,000
|
FNMA, Series 2004-25, Class UC
|
5.500
|
%
|
04/25/34
|
|
281,817
|
|||||||
|
129,581
|
FNMA, Series 2005-106, Class UK
|
5.500
|
%
|
12/25/35
|
|
143,780
|
|||||||
|
172,000
|
FNMA, Series 2005-120, Class PB
|
6.000
|
%
|
01/25/36
|
|
202,727
|
|||||||
|
214,241
|
FNMA, Series 2005-58, Class BC
|
5.500
|
%
|
07/25/25
|
|
237,609
|
|||||||
|
788,000
|
FNMA, Series 2006-74, Class PD
|
6.500
|
%
|
08/25/36
|
|
910,793
|
|||||||
|
390,794
|
FNMA, Series 2007-76, Class PE
|
6.000
|
%
|
08/25/37
|
|
429,689
|
|||||||
|
800,000
|
FNMA, Series 2007-81, Class GE
|
6.000
|
%
|
08/25/37
|
|
918,193
|
|||||||
|
850,000
|
FNMA, Series 2008-60, Class JC
|
5.000
|
%
|
07/25/38
|
|
948,585
|
|||||||
|
88,282
|
FNMA, Series 2008-86, Class GD
|
6.000
|
%
|
03/25/36
|
|
95,367
|
|||||||
|
150,000
|
FNMA, Series 2009-50, Class AX
|
5.000
|
%
|
07/25/39
|
|
170,159
|
|||||||
|
210,000
|
FNMA, Series 2011-37, Class LH
|
4.000
|
%
|
11/25/40
|
|
218,633
|
|||||||
|
247,970
|
FNMA, Series 2012-51, Class B
|
7.000
|
%
|
05/25/42
|
|
281,645
|
|||||||
|
397,449
|
FNMA, Series 2013-17, Class YM
|
4.000
|
%
|
03/25/33
|
|
422,393
|
|||||||
| See Notes to Financial Statements. | 35 |
|
Wright Current Income Fund (WCIF)
Portfolio of Investments – As of June 30, 2014
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|||||||||
|
$
|
145,236
|
FNMA, Series G93-5, Class Z
|
6.500
|
%
|
02/25/23
|
$
|
164,009
|
||||||
|
30,305
|
GNMA I Pool #471369
|
5.500
|
%
|
05/15/33
|
|
34,036
|
|||||||
|
108,038
|
GNMA I Pool #487108
|
6.000
|
%
|
04/15/29
|
|
124,897
|
|||||||
|
91,381
|
GNMA I Pool #489377
|
6.375
|
%
|
03/15/29
|
|
102,812
|
|||||||
|
73,970
|
GNMA I Pool #509930
|
5.500
|
%
|
06/15/29
|
|
82,640
|
|||||||
|
96,579
|
GNMA I Pool #509965
|
5.500
|
%
|
06/15/29
|
|
107,891
|
|||||||
|
28,989
|
GNMA I Pool #595606
|
6.000
|
%
|
11/15/32
|
|
32,616
|
|||||||
|
5,382
|
GNMA I Pool #602377
|
4.500
|
%
|
06/15/18
|
|
5,666
|
|||||||
|
3,827
|
GNMA I Pool #603377
|
4.500
|
%
|
01/15/18
|
|
3,988
|
|||||||
|
247,571
|
GNMA I Pool #615272
|
4.500
|
%
|
07/15/33
|
|
271,480
|
|||||||
|
80,110
|
GNMA I Pool #615403
|
4.500
|
%
|
08/15/33
|
|
88,068
|
|||||||
|
58,782
|
GNMA I Pool #616829
|
5.500
|
%
|
01/15/25
|
|
65,656
|
|||||||
|
65,605
|
GNMA I Pool #623190
|
6.000
|
%
|
12/15/23
|
|
73,758
|
|||||||
|
238,111
|
GNMA I Pool #624600
|
6.150
|
%
|
01/15/34
|
|
267,895
|
|||||||
|
53,088
|
GNMA I Pool #640940
|
5.500
|
%
|
05/15/35
|
|
60,381
|
|||||||
|
36,466
|
GNMA I Pool #677162
|
5.500
|
%
|
08/15/23
|
|
39,686
|
|||||||
|
247,837
|
GNMA I Pool #697999
|
4.500
|
%
|
02/15/24
|
|
264,360
|
|||||||
|
545,186
|
GNMA I Pool #711286
|
6.500
|
%
|
10/15/32
|
|
619,975
|
|||||||
|
446,475
|
GNMA I Pool #733602
|
5.000
|
%
|
04/15/40
|
|
504,138
|
|||||||
|
181,872
|
GNMA I Pool #782771
|
4.500
|
%
|
09/15/24
|
|
194,007
|
|||||||
|
194,089
|
GNMA I Pool #AB1821
|
3.250
|
%
|
10/15/42
|
|
195,994
|
|||||||
|
54,052
|
GNMA II Pool #003284
|
5.500
|
%
|
09/20/32
|
|
60,793
|
|||||||
|
98,286
|
GNMA II Pool #003346
|
5.500
|
%
|
02/20/33
|
|
110,648
|
|||||||
|
34,052
|
GNMA II Pool #003401
|
4.500
|
%
|
06/20/33
|
|
37,529
|
|||||||
|
230,183
|
GNMA II Pool #003403
|
5.500
|
%
|
06/20/33
|
|
259,230
|
|||||||
|
54,597
|
GNMA II Pool #003554
|
4.500
|
%
|
05/20/34
|
|
60,161
|
|||||||
|
150,542
|
GNMA II Pool #003689
|
4.500
|
%
|
03/20/35
|
|
165,259
|
|||||||
|
284,892
|
GNMA II Pool #003931
|
6.000
|
%
|
12/20/36
|
|
323,811
|
|||||||
|
22,250
|
GNMA II Pool #004284
|
5.500
|
%
|
11/20/38
|
|
23,941
|
|||||||
|
235,503
|
GNMA II Pool #004291
|
6.000
|
%
|
11/20/38
|
|
267,879
|
|||||||
|
120,728
|
GNMA II Pool #004412
|
5.000
|
%
|
04/20/39
|
|
129,450
|
|||||||
|
303,572
|
GNMA II Pool #004561
|
6.000
|
%
|
10/20/39
|
|
345,725
|
|||||||
|
252,461
|
GNMA II Pool #004702
|
3.500
|
%
|
06/20/25
|
|
267,410
|
|||||||
|
301,047
|
GNMA II Pool #004753
|
8.000
|
%
|
08/20/30
|
|
364,606
|
|||||||
|
962,656
|
GNMA II Pool #004838
|
6.500
|
%
|
10/20/40
|
|
1,088,067
|
|||||||
|
88,774
|
GNMA II Pool #575787
|
5.760
|
%
|
03/20/33
|
|
102,583
|
|||||||
|
196,048
|
GNMA II Pool #610116
|
5.760
|
%
|
04/20/33
|
|
225,834
|
|||||||
|
64,133
|
GNMA II Pool #610143
|
5.760
|
%
|
06/20/33
|
|
72,308
|
|||||||
|
67,887
|
GNMA II Pool #612121
|
5.760
|
%
|
07/20/33
|
|
76,454
|
|||||||
|
208,959
|
GNMA II Pool #648541
|
6.000
|
%
|
10/20/35
|
|
234,145
|
|||||||
|
119,516
|
GNMA II Pool #748939
|
4.000
|
%
|
09/20/40
|
|
128,215
|
|||||||
|
471,783
|
GNMA, Series 1998-21, Class ZB
|
6.500
|
%
|
09/20/28
|
|
535,733
|
|||||||
|
115,417
|
GNMA, Series 1999-25, Class TB
|
7.500
|
%
|
07/16/29
|
|
132,946
|
|||||||
|
390,098
|
GNMA, Series 1999-4, Class ZB
|
6.000
|
%
|
02/20/29
|
|
438,198
|
|||||||
|
162,506
|
GNMA, Series 2000-14, Class PD
|
7.000
|
%
|
02/16/30
|
|
187,359
|
|||||||
|
650,000
|
GNMA, Series 2001-53, Class PB
|
6.500
|
%
|
11/20/31
|
|
757,530
|
|||||||
|
274,765
|
GNMA, Series 2002-22, Class GF
|
6.500
|
%
|
03/20/32
|
|
314,035
|
|||||||
|
258,647
|
GNMA, Series 2002-33, Class ZD
|
6.000
|
%
|
05/16/32
|
|
291,816
|
|||||||
|
104,063
|
GNMA, Series 2002-40, Class UK
|
6.500
|
%
|
06/20/32
|
|
118,820
|
|||||||
|
81,212
|
GNMA, Series 2002-45, Class QE
|
6.500
|
%
|
06/20/32
|
|
92,789
|
|||||||
|
141,544
|
GNMA, Series 2002-6, Class GE
|
6.500
|
%
|
01/20/32
|
|
161,686
|
|||||||
|
69,764
|
GNMA, Series 2002-7, Class PG
|
6.500
|
%
|
01/20/32
|
|
78,977
|
|||||||
|
187,656
|
GNMA, Series 2003-103, Class PC
|
5.500
|
%
|
11/20/33
|
|
205,847
|
|||||||
|
136,000
|
GNMA, Series 2003-26, Class MA
|
5.500
|
%
|
03/20/33
|
|
146,615
|
|||||||
|
154,000
|
GNMA, Series 2003-46, Class HA
|
4.500
|
%
|
06/20/33
|
|
167,260
|
|||||||
|
179,000
|
GNMA, Series 2003-46, Class MA
|
5.000
|
%
|
05/20/33
|
|
195,865
|
|||||||
| See Notes to Financial Statements. | 36 |
|
Wright Current Income Fund (WCIF)
Portfolio of Investments – As of June 30, 2014
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|||||||||
|
$
|
503,000
|
GNMA, Series 2003-46, Class ND
|
5.000
|
%
|
06/20/33
|
$
|
556,720
|
||||||
|
541,482
|
GNMA, Series 2003-57, Class C
|
4.500
|
%
|
04/20/33
|
|
585,335
|
|||||||
|
111,000
|
GNMA, Series 2003-84, Class PC
|
5.500
|
%
|
10/20/33
|
|
125,958
|
|||||||
|
91,968
|
GNMA, Series 2004-16, Class GB
|
5.500
|
%
|
06/20/33
|
|
97,562
|
|||||||
|
107,589
|
GNMA, Series 2004-63, Class AG
|
6.000
|
%
|
07/20/32
|
|
121,158
|
|||||||
|
211,000
|
GNMA, Series 2005-13, Class BE
|
5.000
|
%
|
09/20/34
|
|
231,742
|
|||||||
|
872,376
|
GNMA, Series 2005-17, Class GE
|
5.000
|
%
|
02/20/35
|
|
951,510
|
|||||||
|
350,618
|
GNMA, Series 2005-49, Class B
|
5.500
|
%
|
06/20/35
|
|
392,076
|
|||||||
|
227,000
|
GNMA, Series 2005-51, Class DC
|
5.000
|
%
|
07/20/35
|
|
250,768
|
|||||||
|
100,000
|
GNMA, Series 2005-93, Class BH
|
5.500
|
%
|
06/20/35
|
|
110,521
|
|||||||
|
43,629
|
GNMA, Series 2007-18, Class B
|
5.500
|
%
|
05/20/35
|
|
49,458
|
|||||||
|
814,000
|
GNMA, Series 2007-6, Class LE
|
5.500
|
%
|
02/20/37
|
|
909,930
|
|||||||
|
163,646
|
GNMA, Series 2007-68, Class NA
|
5.000
|
%
|
11/20/37
|
|
179,097
|
|||||||
|
97,993
|
GNMA, Series 2007-70, Class PE
|
5.500
|
%
|
11/20/37
|
|
108,025
|
|||||||
|
240,000
|
GNMA, Series 2008-26, Class JP
|
5.250
|
%
|
03/20/38
|
|
265,714
|
|||||||
|
300,000
|
GNMA, Series 2008-35, Class EH
|
5.500
|
%
|
03/20/38
|
|
338,716
|
|||||||
|
314,000
|
GNMA, Series 2008-65, Class CM
|
5.000
|
%
|
08/20/38
|
|
344,154
|
|||||||
|
757,000
|
GNMA, Series 2008-65, Class PG
|
6.000
|
%
|
08/20/38
|
|
880,253
|
|||||||
|
157,000
|
GNMA, Series 2009-47, Class LT
|
5.000
|
%
|
06/20/39
|
|
173,750
|
|||||||
|
592,658
|
GNMA, Series 2009-57, Class VB
|
5.000
|
%
|
06/16/39
|
|
670,394
|
|||||||
|
706,000
|
GNMA, Series 2009-93, Class AY
|
5.000
|
%
|
10/20/39
|
|
784,529
|
|||||||
|
2,000,000
|
GNMA, Series 2010-116, Class PB
|
5.000
|
%
|
06/16/40
|
|
2,289,545
|
|||||||
|
350,000
|
GNMA, Series 2010-89, Class BG
|
4.000
|
%
|
07/20/40
|
|
361,716
|
|||||||
|
Total Agency Mortgage-Backed Securities (identified cost, $55,607,082)
|
$
|
56,630,731
|
|
TOTAL FIXED INCOME INVESTMENTS (identified cost, $55,607,082) — 96.7%
|
$
|
56,630,731
|
|
SHORT-TERM INVESTMENTS - 5.1%
|
|
$
|
2,997,880
|
Fidelity Government Money Market Fund, 0.01% (1)
|
$
|
2,997,880
|
|
TOTAL SHORT-TERM INVESTMENTS (identified cost, $2,997,880) — 5.1%
|
$
|
2,997,880
|
|
TOTAL INVESTMENTS (identified cost, $58,604,962) — 101.8%
|
$
|
59,628,611
|
|
LIABILITIES, IN EXCESS OF OTHER ASSETS — (1.8)%
|
(1,061,876
|
)
|
|
NET ASSETS — 100.0%
|
$
|
58,566,735
|
FHLMC — Federal Home Loan Mortgage Corporation
FNMA — Federal National Mortgage Association
GNMA — Government National Mortgage Association
|
(1)
|
Variable rate security. Rate presented is as of June 30, 2014.
|
|
Portfolio Composition by Security Type
|
|
|
% of total investments at June 30, 2014
|
|
|
Agency Mortgage-Backed Securities
|
95.0%
|
|
Short-Term Investments
|
5.0%
|
| See Notes to Financial Statements. | 37 |
|
Wright Current Income Fund (WCIF)
|
|
STATEMENT OF ASSETS AND LIABILITIES
|
STATEMENT OF OPERATIONS
|
|||||||||||||
|
ASSETS:
|
FALSE
|
INVESTMENT INCOME (Note 1C)
|
FALSE
|
|||||||||||
|
Investments, at value
|
Interest income
|
$
|
969,406
|
|||||||||||
|
(identified cost $58,604,962) (Note 1A)
|
$
|
59,628,611
|
######
|
6.00E+07
|
Dividend income
|
98
|
||||||||
|
Receivable for fund shares sold
|
47,110
|
Total investment income
|
$
|
969,504
|
||||||||||
|
Dividends and interest receivable
|
222,729
|
|||||||||||||
|
Prepaid expenses and other assets
|
23,122
|
Expenses –
|
||||||||||||
|
Total assets
|
$
|
59,921,572
|
Investment adviser fee (Note 3)
|
$
|
130,348
|
|||||||||
|
Administrator fee (Note 3)
|
26,070
|
|||||||||||||
|
LIABILITIES:
|
Trustee expense (Note 3)
|
6,906
|
||||||||||||
|
Payable for fund shares reacquired
|
$
|
19,751
|
Custodian fee
|
2,853
|
||||||||||
|
Payable for investment securities purchased
|
1,216,528
|
Accountant fee
|
19,967
|
|||||||||||
|
Distributions payable
|
99,036
|
Pricing
|
23,433
|
|||||||||||
|
Accrued expenses and other liabilities
|
19,522
|
Distribution expenses (Note 4)
|
72,415
|
|||||||||||
|
Total liabilities
|
$
|
1,354,837
|
Transfer agent fee
|
14,297
|
||||||||||
|
NET ASSETS
|
$
|
58,566,735
|
Printing
|
82
|
||||||||||
|
Shareholder communications
|
3,279
|
|||||||||||||
|
NET ASSETS CONSIST OF:
|
Audit services
|
9,788
|
||||||||||||
|
Paid-in capital
|
$
|
61,040,719
|
Legal services
|
9,601
|
||||||||||
|
Accumulated net realized loss on investments
|
(3,081,650
|
)
|
Compliance services
|
3,345
|
||||||||||
|
Distributions in excess of net investment income
|
(415,983
|
)
|
Registration costs
|
10,628
|
||||||||||
|
Unrealized appreciation on investments
|
1,023,649
|
Miscellaneous
|
19,002
|
|||||||||||
|
Net assets applicable to outstanding shares
|
$
|
58,566,735
|
Total expenses
|
$
|
352,014
|
|||||||||
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
6,170,167
|
Deduct –
|
||||||||||||
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
$
|
(91,318
|
)
|
|||||||||||
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
$
|
9.49
|
Net expenses
|
$
|
260,696
|
|||||||||
|
Net investment income
|
$
|
708,808
|
||||||||||||
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
|
|||||||||||||
|
|
Net realized gain on investment transactions
|
$
|
277,644
|
|||||||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
453,908
|
|||||||||||||
|
Net realized and unrealized gain on investments
|
$
|
731,552
|
||||||||||||
|
Net increase in net assets from operations
|
$
|
1,440,360
|
||||||||||||
| 38 |
|
Wright Current Income Fund (WCIF)
|
|
Six Months Ended
|
Year Ended
|
|||||||||
|
STATEMENTS OF CHANGES IN NET ASSETS
|
June 30, 2014
|
December 31, 2013
|
||||||||
|
INCREASE (DECREASE) IN NET ASSETS:
|
||||||||||
|
From operations –
|
||||||||||
|
Net investment income
|
$
|
708,808
|
$
|
1,262,003
|
||||||
|
0
|
Net realized gain (loss) on investment transactions
|
277,644
|
(275,429
|
)
|
||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
453,908
|
(2,419,901
|
)
|
|||||||
|
Net increase (decrease) in net assets from operations
|
$
|
1,440,360
|
$
|
(1,433,327
|
)
|
|||||
|
Distributions to shareholders (Note 2)
|
||||||||||
|
From net investment income
|
$
|
(1,125,079
|
)
|
$
|
(2,763,577
|
)
|
||||
|
Total distributions
|
$
|
(1,125,079
|
)
|
$
|
(2,763,577
|
)
|
||||
|
Net decrease in net assets resulting from fund share transactions (Note 6)
|
$
|
(1,125,105
|
)
|
$
|
(15,880,571
|
)
|
||||
|
Net decrease in net assets
|
$
|
(809,824
|
)
|
$
|
(20,077,475
|
)
|
||||
|
##
|
||||||||||
|
NET ASSETS:
|
||||||||||
|
At beginning of period
|
59,376,559
|
79,454,034
|
||||||||
|
At end of period
|
$
|
58,566,735
|
$
|
59,376,559
|
||||||
|
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD
|
$
|
(415,983
|
)
|
$
|
288
|
|||||
| 39 |
|
Wright Current Income Fund (WCIF)
|
|
These financial highlights reflect selected data for a share outstanding throughout each period.
|
||||||||||||||||||||
|
Six Months Ended
June 30,
|
Years Ended December 31,
|
|||||||||||||||||||
|
FINANCIAL HIGHLIGHTS
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||
|
Net asset value, beginning of period
|
$
|
9.440
|
$
|
10.010
|
$
|
10.100
|
$
|
9.910
|
$
|
9.830
|
$
|
9.700
|
||||||||
|
Income (loss) from investment operations:
|
||||||||||||||||||||
|
Net investment income (1)
|
0.115
|
0.173
|
0.225
|
0.303
|
0.377
|
0.472
|
||||||||||||||
|
Net realized and unrealized gain (loss)
|
0.118
|
(0.365
|
)
|
0.081
|
0.302
|
0.175
|
0.118
|
|||||||||||||
|
Total income (loss) from investment operations
|
0.233
|
(0.192
|
)
|
0.306
|
0.605
|
0.552
|
0.590
|
|||||||||||||
|
Less distributions:
|
||||||||||||||||||||
|
From net investment income
|
(0.183
|
)
|
(0.378
|
)
|
(0.396
|
)
|
(0.415
|
)
|
(0.472
|
)
|
(0.460
|
)
|
||||||||
|
Net asset value, end of period
|
$
|
9.490
|
$
|
9.440
|
$
|
10.010
|
$
|
10.100
|
$
|
9.910
|
$
|
9.830
|
||||||||
|
Total Return(2)
|
2.48
|
%(3)
|
(1.95
|
)%
|
3.06
|
%
|
6.22
|
%
|
5.70
|
%
|
6.20
|
%
|
||||||||
|
Ratios/Supplemental Data(1):
|
||||||||||||||||||||
|
Net assets, end of period (000 omitted)
|
$58,567
|
$59,377
|
$79,454
|
$61,325
|
$40,584
|
$33,029
|
||||||||||||||
|
Ratios (As a percentage of average daily net assets):
|
||||||||||||||||||||
|
Net expenses
|
0.90
|
%(4)
|
0.90
|
%
|
0.90
|
%
|
0.90
|
%
|
0.90
|
%
|
0.92
|
%
|
||||||||
|
Net expenses after custodian fee reduction
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
0.92
|
%
|
|||||||||||||
|
Net investment income
|
2.45
|
%(4)
|
1.77
|
%
|
2.23
|
%
|
3.03
|
%
|
3.79
|
%
|
4.81
|
%
|
||||||||
|
Portfolio turnover rate
|
15
|
%(3)
|
39
|
%
|
27
|
%
|
50
|
%
|
54
|
%
|
57
|
%
|
||||||||
|
For the six months ended June 30, 2014, and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
For the six months ended June 30, 2014, and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
|||||||||||||||||||
|
(1)
|
Computed using average shares outstanding.
|
|||||||||||||||||||
|
(2)
|
Total 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)
|
Not annualized.
|
|||||||||||||||||||
|
(4)
|
Annualized.
|
|||||||||||||||||||
|
(5)
|
For each of the periods presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income ratios would have been as follows:
|
|||||||||||||||||||
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||
|
Ratios (As a percentage of average daily net assets):
|
||||||||||||||||||||
|
Expenses
|
1.22
|
%(4)
|
1.16
|
%
|
1.16
|
%
|
1.19
|
%
|
1.33
|
%
|
1.32
|
%
|
||||||||
|
Expenses after custodian fee reduction
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
1.32
|
%
|
|||||||||||||
|
Net investment income
|
2.13
|
%(4)
|
1.51
|
%
|
1.97
|
%
|
2.74
|
%
|
3.36
|
%
|
4.41
|
%
|
||||||||
| 40 |
|
The Wright Managed Income Trust
Notes to Financial Statements
|
1. Significant Accounting Policies
Wright Total Return Bond Fund (“WTRB”) and Wright Current Income Fund (“WCIF”) (each a “Fund” and collectively, the “Funds”) (the Funds constituting Wright Managed Income Trust (the “Trust”)), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. 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.
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 (“GAAP”).
A. Investment Valuations – Debt obligations, including listed securities and securities for which quotations are readily available, will normally be valued on the basis of reported trades or market quotations provided by third party pricing services, when these prices are representative of the securities’ market values. For debt securities where market quotations are not readily available, the pricing services will use various techniques that consider factors including, but not limited to, prices or yields of securities with similar characteristics, benchmark yields, broker/dealer quotes, issuer spreads, as well as industry and economic events. Short-term debt securities with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. If short-term debt securities are acquired with a remaining maturity of more than sixty days, they will be valued by a pricing service as described above. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Funds in a manner that most fairly reflects the security’s value, or the amount that the Funds might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies, quotations or relevant information obtained from broker-dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B. Investment Transactions – Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.
C. Income – Dividend income is recorded on the ex-dividend date. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Funds are informed of the ex-dividend date. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium and accretion of discount.
Paydown gains and losses are included in interest income.
D. Federal Taxes – Each Fund’s policy is to comply with the provisions of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute to shareholders each year substantially all of its net investment income and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. At December 31, 2013, WTRB and WCIF, for federal income tax purposes, had capital loss carryforwards subject to expiration of $1,438,598 and $2,990,870, respectively, which will reduce each Fund’s 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 distributions to shareholders, which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. Pursuant to the Code, such capital loss carryforwards will expire as follows:
| 41 |
|
The Wright Managed Income Trust
Notes to Financial Statements
|
|
December 31,
|
WTRB
|
WCIF
|
|
2014
|
$940,468
|
$ -
|
|
2015
|
199,047
|
160,341
|
|
2017
|
299,083
|
-
|
As a result of the Regulated Investment Company Modernization Act of 2010, net capital losses realized on or after January 1, 2011 (effective date) may be carried forward indefinitely to offset future realized capital gains; however, post-effective losses must be used before pre-effective capital loss carryforwards with expiration dates. Therefore, it is possible that all or a portion of a fund’s pre-effective capital loss carryforwards could expire unused. In addition to the amounts noted in the table above, WCIF has $1,610,948 available short term capital loss carryforwards and $1,219,581 available long term capital loss carryforwards that have no expiration date.
As of June 30, 2014, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Funds’ federal tax returns filed in the 3-year period ended December 31, 2013, remains subject to examination by the Internal Revenue Service.
E. Expenses – The majority of expenses of the Trust are directly identifiable to an individual Fund. Expenses which are not readily identifiable to a specific Fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the Funds.
F. Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
G. Indemnifications – Under each Fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Funds, and shareholders are indemnified against personal liability for the obligations of the Funds. Additionally, in the normal course of business, the Funds enter into agreements with service providers that may contain indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
H. Interim Financial Statements – The interim financial statements relating to June 30, 2014, and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of Funds’ management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
2. Distributions to Shareholders
The net investment income of each Fund is determined daily, and substantially all of the net investment income so determined is declared daily as a dividend to shareholders of record at the time of declaration. Distributions are generally paid monthly. Distributions of net realized capital gains (reduced by available capital loss carryforwards from prior years, if any) are made at least annually. Shareholders may reinvest income and capital gain distributions in additional shares of the same Fund at the net asset value as of the reinvestment date or, at the election of the shareholder, receive distributions in cash. The Funds distinguish between distributions on a tax basis and a financial reporting basis. GAAP requires that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital.
| 42 |
|
The Wright Managed Income Trust
Notes to Financial Statements
|
As of December 31, 2013, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
|
WTRB
|
WCIF
|
|||||||
|
Undistributed ordinary income
|
$
|
-
|
$
|
288
|
||||
|
Capital loss carryforward and post October losses
|
(1,456,233
|
)
|
(3,124,253
|
)
|
||||
|
Unrealized appreciation
|
486,191
|
334,700
|
||||||
|
Total
|
$
|
(970,042
|
)
|
$
|
(2,789,265
|
)
|
The difference between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to wash sales, premium amortization and paydown gain (loss).
For tax purposes, the current year post-October loss was $17,635 and $133,383 (realized during the period November 1, 2013 through December 31, 2013) for WTRB and WCIF, respectively. These losses will be recognized for tax purposes on the first business day of each Fund’s next fiscal year, January 1, 2014.
3. Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Wright Investor Services, Inc. (“Wright”) as compensation for investment advisory services rendered to the Funds. The fees are computed at annual rates of the Funds' average daily net assets as noted below, and are payable monthly.
|
Annual Advisory Fee Rates
|
|||||
|
Fund
|
Under $100 Million
|
$100 Million to $250 Million
|
$250 Million to $500 Million
|
$500 Million to $1 Billion
|
Over $1 Billion
|
|
WTRB
|
0.45%
|
0.44%
|
0.42%
|
0.40%
|
0.35%
|
|
WCIF
|
0.45%
|
0.44%
|
0.42%
|
0.40%
|
0.35%
|
For the year ended June 30, 2014, the fee and the effective annual rate, as a percentage of average daily net assets for each of the Funds were as follows:
|
Fund
|
Investment Adviser Fee
|
Effective Annual Rate
|
|
WTRB
|
$ 29,919
|
0.45%
|
|
WCIF
|
$130,348
|
0.45%
|
The administrator fee is earned by Wright for administering the business affairs of each Fund. The fee is computed at an annual rate of 0.07% of the average daily net assets up to $100 million for WTRB and an annual rate of 0.09% of the average daily net assets up to $100 million for WCIF, and 0.05% of average daily net assets over $100 million. Atlantic Fund Administration, LLC (d/b/a Atlantic Fund Services) (“Atlantic”) serves as sub-administrator of the Funds to perform certain services of the administrator as may be agreed upon between the administrator and sub-administrator. The sub-administration fee is paid by Wright.
For the period ended June 30, 2014, the administrator fee for WTRB and WCIF amounted to $4,654 and $26,070, respectively.
Certain Trustees and officers of the Trust are Trustees or officers of the above organizations and/or of the Funds’ principal underwriter. Except as to Trustees of the Trust who are not employees of Atlantic or Wright, Trustees and officers receive remuneration for their services to the Trust out of the fees paid to Atlantic and Wright. The Trustees are compensated by the Trust in conjunction with the Wright Managed Equity Trust, rather than on a per Trust or per Fund basis. Quarterly retainer fees are paid in the amount of $4,000 to the Lead Trustee, $3,500 to the Secretary of Independent Trustees, and $3,000 each to the remaining Trustees. In addition, each Trustee will be paid a fee of $1,500 for each regular Board meeting attended. Each Trustee
| 43 |
|
The Wright Managed Income Trust
Notes to Financial Statements
|
is also reimbursed for all reasonable out-of-pocket expenses incurred in connection with his duties as a Trustee, including travel and related expenses incurred in attending Board meetings. The amount of Trustees’ fees attributable to each Fund is disclosed in each Fund’s Statement of Operations.
4. Distribution and Service Plans
The Trust has in effect a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 of the 1940 Act. The Plan provides that each Fund will pay Wright Investors’ Service Distributors, Inc. (“WISDI”), the principal underwriter, a wholly-owned subsidiary of The Winthrop Corporation and an affiliate of Wright, a distribution fee of 0.25% of the average daily net assets of each Fund for distribution services and facilities provided to the Funds by WISDI. Distribution fees paid or accrued to WISDI for the period ended June 30, 2014, for WTRB and WCIF were $16,621 and $72,415, 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 combined amount of service fees payable under the Service Plan and Rule 12b-1 distribution fees may not exceed 0.25% annually of each Fund’s average daily net assets. For the period ended June 30, 2014, the Funds did not accrue or pay any service fees.
Pursuant to an Expense Limitation Agreement, Wright and WISDI have agreed to waive all or a portion of their fees and reimburse expenses to the extent that total annual operating expenses exceed 0.95% and 1.00% of the average daily net assets of WTRB and WCIF, respectively, through April 30, 2015 (excluding interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund’s business). Thereafter, the waiver and reimbursement may be changed or terminated at any time. In addition, Wright and WISDI have voluntarily agreed to further limit the total annual expenses of WCIF to 0.90% of its average daily net assets. Such voluntary limitation may be terminated at any time. Pursuant to these agreements and voluntary limitation, Wright waived and/or reimbursed investment adviser fees of $58,597 and $18,903 for WTRB and WCIF, respectively. WISDI waived distribution fees of $16,621 and $72,415 for WTRB and WCIF, respectively.
5. Investment Transactions
Purchases and sales (including maturities and paydowns) of investments, other than short-term obligations, were as follows:
|
Six Months Ended June 30, 2014
|
||
|
WTRB
|
WCIF
|
|
|
Purchases -
|
||
|
Non-U.S. Government & Agency Obligations
|
$ 240,598
|
$ -
|
|
U.S. Government & Agency Obligations
|
681,471
|
232,753
|
|
Sales -
|
||
|
Non-U.S. Government & Agency Obligations
|
$ 2,061,552
|
$ 8,282,432
|
|
U.S. Government & Agency Obligations
|
2,075,037
|
8,678,810
|
6. 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:
| 44 |
|
The Wright Managed Income Trust
Notes to Financial Statements
|
|
December 31, 2014
|
36525
|
41820
|
#
|
#
|
41639
|
||||||||||||||||||||||||
|
Six Months Ended
June 30, 2014
|
Year Ended
December 31, 2013
|
||||||||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||||||||||
|
WTRB
|
|||||||||||||||||||||||||||||
|
Sold
|
32,091
|
$
|
405,139
|
166,765
|
$
|
2,158,136
|
|||||||||||||||||||||||
|
Issued to shareholders in payment of distributions declared
|
16,706
|
211,579
|
38,483
|
494,615
|
|||||||||||||||||||||||||
|
Redemptions
|
(306,892
|
)
|
(3,883,311
|
)
|
(812,158
|
)
|
(10,591,891
|
)
|
|||||||||||||||||||||
|
Net decrease
|
(258,095
|
)
|
$
|
(3,266,593
|
)
|
(606,910
|
)
|
$
|
(7,939,140
|
)
|
|||||||||||||||||||
|
December 31, 2014
|
36525
|
41820
|
#
|
#
|
41639
|
||||||||||||||||||||||||
|
Six Months Ended
June 30, 2014
|
Year Ended
December 31, 2013
|
||||||||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||||||||||
|
WCIF
|
|||||||||||||||||||||||||||||
|
Sold
|
708,761
|
$
|
6,720,083
|
2,259,819
|
$
|
22,209,423
|
|||||||||||||||||||||||
|
Issued to shareholders in payment of distributions declared
|
52,323
|
496,528
|
127,114
|
1,235,624
|
|||||||||||||||||||||||||
|
Redemptions
|
(879,512
|
)
|
(8,341,716
|
)
|
(4,038,834
|
)
|
(39,325,618
|
)
|
|||||||||||||||||||||
|
Net decrease
|
(118,428
|
)
|
$
|
(1,125,105
|
)
|
(1,651,901
|
)
|
$
|
(15,880,571
|
)
|
|||||||||||||||||||
7. Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of the investment securities owned at June 30, 2014, as computed on a federal income tax basis, were as follows:
|
Year Ended December 31, 2013
|
|||||||
|
WTRB
|
WCIF
|
||||||
|
Aggregate cost
|
$
|
11,444,256
|
$
|
58,604,962
|
|||
|
Gross unrealized appreciation
|
$
|
5,360,547
|
$
|
1,452,921
|
|||
|
Gross unrealized depreciation
|
|
(4,529,190
|
)
|
|
(429,272
|
)
|
|
|
Net unrealized appreciation
|
$
|
831,357
|
$
|
1,023,649
|
|||
8. Line of Credit
The Funds participate with other funds managed by Wright in a committed $10 million unsecured line of credit agreement with Union Bank of California, N.A. (“Union 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 LIBOR rate. Because the line of credit is not available exclusively to each Fund, they may be unable to borrow some or all of the Funds’ requested amounts at any particular time. At June 30, 2014, the Funds had no outstanding balances pursuant to this line of credit.
The average borrowings and average interest rate (based on days with outstanding balances) for the period ended June 30, 2014, were as follows:
|
WTRB
|
|
|
Average borrowings
|
$143,015
|
|
Average interest rate
|
1.15%
|
| 45 |
|
The Wright Managed Income Trust
Notes to Financial Statements
|
9. Fair Value Measurements
Under GAAP for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At June 30, 2014, the inputs used in valuing each Fund’s investments, which are carried at value, were as follows:
WTRB
|
Asset Description
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
Total
|
||||
|
Commerical Mortgage-Backed Securities
|
$
|
-
|
$
|
960,152
|
$
|
-
|
$
|
960,152
|
|
Corporate Bonds
|
-
|
5,215,339
|
-
|
5,215,339
|
||||
|
U.S. Government Interests
|
-
|
5,922,848
|
-
|
5,922,848
|
||||
|
Short-Term Investments
|
-
|
177,274
|
-
|
177,274
|
||||
|
Total Investments
|
$
|
-
|
$
|
12,275,613
|
$
|
-
|
$
|
12,275,613
|
WCIF
|
Asset Description
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
Total
|
||||
|
Agency Mortgage-Backed Securities
|
$
|
-
|
$
|
56,630,731
|
$
|
-
|
$
|
56,630,731
|
|
Short-Term Investments
|
-
|
2,997,880
|
-
|
2,997,880
|
||||
|
Total Investments
|
$
|
-
|
$
|
59,628,611
|
$
|
-
|
$
|
59,628,611
|
The level classification by major category of investments is the same as the category presentation in each Fund’s Portfolio of Investments.
There were no transfers among Level 1, Level 2 and Level 3 for the period ended June 30, 2014.
10. Review for Subsequent Events
In connection with the preparation of the financial statements of the Funds as of and for the period ended June 30, 2014, events and transactions subsequent to June 30, 2014, have been evaluated by the Funds’ management for possible adjustment and/or disclosure. Management has not identified any subsequent events requiring financial statement disclosure as of the date these financial statements were issued.
| 46 |
|
Board of Trustees
Annual Approval of the Investment Advisory Agreement
|
In evaluating the Investment Advisory Contracts, the Independent Trustees met separately from the Interested Trustees and reviewed and considered materials furnished by Wright, including information regarding Wright, its affiliates and personnel, operations and financial condition. The Independent Trustees discussed with representatives of Wright the portfolio management and operations of the funds and the capabilities of Wright to provide advisory and other services to each fund. The Independent Trustees considered, among other things, the following:
1. Performance and Quality of Services. The Trustees considered the quality of services provided by Wright as well as Wright’s oversight of vendors. The Trustees also considered the resources devoted to Wright’s compliance efforts and their record of compliance. The Trustees concluded that the services being provided by Wright are as agreed to in the Advisory Contracts and that the quality of service is good.
The Trustees relied on market comparisons and Morningstar data to assess the performance of each Fund over one, three, five and ten year periods. The Trustees noted that as of December 31, 2013: (i) the Wright Selected Blue Chip Equities Fund (“WSBC”) outperformed its benchmark and peer group for the one-, three-, and five-year periods; (ii) the Wright Major Blue Chip Equities Fund (“WMBC”) outperformed its benchmark and peer group for the one-year period, but underperformed its benchmark and peer group for the three- and five-year periods, (iii) the Wright International Blue Chip Equities Fund (“WIBC”) outperformed its peer group for the one-year period, but underperformed its benchmark for the one-, three-, and five-year periods and its peer group for the three- and five-year periods; (iv) the Wright Total Return Bond Fund (“WTRB”) outperformed its benchmark for the five-year period, but underperformed its benchmark for the one- and three-year periods and its peer group for the one-, three- and five-year periods; and (v) the Wright Current Income Fund (“WCIF”) outperformed its benchmark for the one-year period and its peer group for the one-, three- and five- year periods, but underperformed its benchmark for the three- and five-year periods.
2. Fees and expense ratios. The Trustees noted that the Funds’ expense ratios exceed those of some of their peers, but are reasonably similar and that the expense ratios for WSBC was lower than the median for their respective peer groups. The Trustees noted that the Funds’ expense ratios remain generally unchanged from the prior year, although they specifically noted that WIBC’s expense ratio had increased. They also considered the contractual expense limitations in place for each Fund. The Trustees concluded that, based upon the information provided by Wright, the compensation paid by the Funds to Wright is in the average range of compensation charged by other advisers for similar services and appear fair, and also that the Funds’ expenses do not appear excessive.
3. Relationship of fees and performance. The Trustees observed that performance in 2013 exceeded the Funds’ respective benchmarks, with the exception of WIBC which underperformed its benchmark. They also noted, that performance in 2013 for the Funds exceeded that of their respective peer groups, with the exception of WTRB which underperformed. The Trustees assessed each Fund’s fee structure against those of its peer group, as well as in comparison to the fee structure for private accounts. The Trustees concluded that, based on the overall short-term and long-term performance of the Funds, the fee structure appears to be fair and reasonable.
4. Profitability and Economies of Scale. The Trustees assessed the level of profitability to Wright as adviser to each Fund and concluded that such was reasonable and not excessive. The Trustees also considered Wright’s financial condition, and noted that continuing subsidies by Wright to the majority of the Funds limited the overall profitability of those Funds to Wright. The Trustees observed that the Funds have breakpoints which appear to be typical and serve to limit concerns over economies of scale. The Trustees concluded that economies of scale are not a major concern at the Funds’ current asset levels.
| 47 |
|
Important Notices Regarding Delivery of Shareholder
Documents, Portfolio Holdings and Proxy Voting
|
The Wright Managed Blue Chip Investment Funds
Wright Investors’ Service, Inc.
Wright Investors’ Service Distributors, Inc.
Important Notice Regarding Delivery of Shareholders Documents
The Securities and Exchange Commission (the “SEC”) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders.
Wright, or your financial adviser, may household the mailing of your documents indefinitely unless you instruct Wright, or your financial adviser, otherwise.
If you would prefer that your Wright documents not be householded, please contact Wright at (800) 555-0644, or your financial adviser.
Your instructions that householding not apply to delivery of your Wright documents will be effective within 30 days of receipt by Wright or your financial adviser.
Portfolio Holdings
In accordance with rules established by the SEC, the Funds send semi-annual and annual reports to shareholders that contain a complete list of portfolio holdings as of the end of the second and fourth quarters, respectively, within 60 days of quarter-end and after filing with the SEC. The Funds also disclose complete portfolio holdings as of the end of the first and third fiscal quarters on Form N-Q, which is filed with the SEC within 60 days of quarter-end. The Funds’ complete portfolio holdings as reported in annual and semi-annual reports and on Form N-Q are available for viewing on the SEC website at http://www.sec.gov and may be reviewed and copied at the SEC’s public reference room (information on the operation and terms of usage of the SEC public reference room is available at http://sec.gov/info/edgar/prrules.htm or by calling (800) SEC-0330). After filing, the Funds’ portfolio holdings as reported in annual and semi-annual reports are also available on Wright’s website at www.wrightinvestors.com and are available upon request at no additional cost by contacting Wright at (800) 555-0644.
Proxy Voting Policies and Procedures
From time to time funds are required to vote proxies related to the securities held by the funds. The Wright Managed Blue Chip Investment Funds vote proxies according to a set of policies and procedures approved by the Funds’ Board. You may obtain a description of these policies and procedures and information on how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 without charge, upon request, by calling (800) 555-0644. This description is also available on the SEC website at http://www.sec.gov.
| 48 |
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
|
(a)
|
Included as part of report to stockholders under Item 1.
|
|
(b)
|
Not applicable.
|
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which a Fund’s shareholder may recommend nominees to the registrant’s board of Trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A(17 CFR240 14a-101), or this item.
ITEM 11. 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 to 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 12. EXHIBITS.
(a)(1) Registrant’s Code of Ethics – Not applicable (please see Item 2)
(a)(2) Treasurer’s and President’s Section 302 certification
(a)(3) Not applicable.
(b) Combined 906 certification
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.
Registrant 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 14, 2014
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/ Peter M. Donovan
Peter M. Donovan
President
Date August 14, 2014
By /s/ Michael J. McKeen
Michael J. McKeen
Treasurer
Date August 14, 2014