As filed with the Securities and Exchange Commission on August 25, 2011
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 811-3668
THE WRIGHT MANAGED INCOME TRUST
440 Wheelers Farms Road
Milford, Connecticut 06461
Christopher A. Madden
Three Canal Plaza, Suite 600
Portland, ME 04101
207-347-2000
Date of fiscal year end: December 31
Date of reporting period: January 1, 2011 – June 30, 2011
ITEM 1. REPORT TO STOCKHOLDERS.
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Table of Contents
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| Investment Objectives | inside front | |||||
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Letter to Shareholders
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2
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|||||
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Fund Expenses
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4
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|||||
| Board of Trustees Annual Approval of the Investment Advisory Agreement | 50 | |||||
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Important Notices Regarding Privacy, Delivery of Shareholder Documents, Portfolio Holdings and Proxy Voting
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51
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|||||
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FINANCIAL STATEMENTS
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||||||
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The Wright Managed Equity Trust
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The Wright Managed Income Trust
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|||||
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Wright Selected Blue Chip Equities Fund
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Wright Total Return Bond Fund
|
|||||
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Portfolio of Investments
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6
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Portfolio of Investments
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28
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|||
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Statement of Assets and Liabilities
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8
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Statement of Assets and Liabilities
|
33
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|||
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Statement of Operations
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8
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Statement of Operations
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33
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|||
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Statements of Changes in Net Assets
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9
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Statements of Changes in Net Assets
|
34
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|||
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Financial Highlights
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10
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Financial Highlights
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35
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|||
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Wright Major Blue Chip Equities Fund
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Wright Current Income Fund
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|||||
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Portfolio of Investments
|
11
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Portfolio of Investments
|
36
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|||
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Statement of Assets and Liabilities
|
13
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Statement of Assets and Liabilities
|
40
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|||
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Statement of Operations
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13
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Statement of Operations
|
40
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|||
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Statements of Changes in Net Assets
|
14
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Statements of Changes in Net Assets
|
41
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Financial Highlights
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15
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Financial Highlights
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42
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Wright International Blue Chip Equities Fund
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Notes to Financial Statements
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43
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||||
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Portfolio of Investments
|
16
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|||||
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Statement of Assets and Liabilities
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18
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|||||
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Statement of Operations
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18
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|||||
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Statements of Changes in Net Assets
|
19
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|||||
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Financial Highlights
|
20
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|||||
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Notes to Financial Statements
|
21
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|||||
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Letter to Shareholders
|
Dear Shareholders:
If it is true that it’s not how you start but how you finish that counts, the second quarter of 2011 was better than the raw numbers indicate. The Dow Jones Industrial Average was the only one of the major U.S. stock market averages to show a price increase for the second quarter, but the declines in other indexes were generally smaller than 1% thanks to the market’s big gains in the final week of the quarter. In fact, the S&P 500’s 5.6% advance in the final four trading sessions of the second quarter and the first one in July was the market’s best weekly gain in nearly two years. With the late gains, the S&P 500 closed the first half with a total return of 6%, a little better than the market’s long-term average rate of return for six months.
Within the S&P 500 universe, health care stocks had the best price gains for the second quarter (7.3%) and first half (12.7%), while stocks in the financial sector were laggards for both the quarter (-6.3%) and the half (-3.7%). The second quarter also took a toll on energy stocks (-5.1%) and the materials sector (-1.4%) as oil prices and prices for other commodities retreated in the quarter. Foreign stock returns were slightly lower in local currency terms than U.S. returns for the second quarter, but the dollar’s depreciation boosted foreign returns ahead of U.S. returns. Despite the Greek debt crisis, Europe led the U.S., Japan, non-Japan Asia and emerging markets for the quarter, with the euro’s rebound a big part of the difference.
The first half of 2011 saw U.S. economic growth of roughly 2% (annual rate), but a more satisfactory 3% rate of growth is forecast for the second half. Gasoline prices have come down by around 10% off their peak, and the negative effects on U.S. supply chains as a result of Japan’s tsunami-related production disruptions should begin to reverse in the third quarter. The employment report for June, released by the Labor Department on July 8, shows that a second-half “fast patch” is no slam-dunk. Since February 2010, when job losses were at their worst, the private sector of the U.S. economy has recovered only around two million of the more than eight million total jobs lost as a result of the recession/financial crisis. The past two months have been particularly disappointing in that private sector job creation has averaged only 65,000 a month, down from the promising 240,000 averaged over the prior three months. In the realm of fiscal and monetary policy, the May-June job drought is sure to bring calls for policy makers to do more to get the economy back on track. With the national debt ceiling looming, clearly there remains a wide gulf between those who want to cut spending and those who want to raise taxes to narrow the federal budget deficit, neither of which may do much to prop up a sputtering economy – at least not in the short run. Policy options appear to be limited, but an acceptable compromise may yet be worked out between Speaker of the House John Boehner and the Obama Administration.
The Federal Reserve’s Large-Scale Asset Purchase program, known outside the Fed as Quantitative Easing 2 or QE2, ended on June 30 with $600 billion in Treasury securities added to the Fed’s balance sheet since last October. While we don’t rule out a QE3 and additional securities purchases by the Fed should the “soft patch” in the U.S. economy develop into a deeper, more prolonged slowdown, more likely is an extended period in which the Fed buys Treasurys and mortgage securities in sufficient quantities to replace securities as they mature or are paid down. The Fed’s System Open Market Account holdings of Treasurys, agencies and mortgage-backed securities totaled $2.64 trillion on July 6, and the Fed is expected to continue buying bonds in order to maintain that level. In other words, the Fed will continue to be a factor in the government bond market for as far as the eye can see, although not so large a presence as it has been over the past three years while it was building up its holdings. Even as fiscal policy appears to be hamstrung by deficit concerns, Federal Reserve monetary policies will stay stimulative for some time to come.
In contrast, the European Central Bank, despite the debt crisis on Europe’s periphery, raised its benchmark
| 2 |
|
Letter to Shareholders
|
lending rate in the first week of July, its second rate hike in three months. Inflation pressures have elevated in Europe, and the risk of an inflation spiral, which we might consider de minimis, is troubling to European sensibilities. Having put together a loan package that should get Greece through its immediate funding crisis, Europe and the euro are at some economic risk, it seems to us, as a result of the ECB’s move to raise rates. The German economy and to a lesser extent the economies of Austria, Belgium and the Netherlands, have performed better than the more troubled economies of peripheral Europe, but even in these economies there has been a flattening out in the leading indicators. In Asia, Japan’s economic troubles are well-documented, and Chinese policy makers continue to aim for slower growth and lower inflation. The engines of world economic growth are clearly the emerging markets, although even there slowing is evident.
Against this economic backdrop, corporate earnings continue to be one of the legitimate bright spots, forecast to grow 10%-15% this year and possibly by double digits again in 2012. As second-quarter earnings season begins, S&P 500 operating profits are closing in on record 2007 levels; in fact, when Q2 results are fully tallied later this summer, we may reach a new record for S&P 500 profits. While corporate profits from current production are hitting new highs, the S&P 500 is priced nearly 15% below its October 2007 high; the Dow Industrials are down somewhat less (-11%), but the NASDAQ Composite is still 44% off its dot-com peak. Where there was a bubble in 2000, there is none today: the S&P 500 is priced at a relatively attractive 12.5 times forecast year-ahead earnings.
Wright believes that the best solution to the developed economies’ deficits and debt is economic growth, which makes the lost momentum in the labor market of the past two months worrisome. Whether or not the soft patch in the economy will prove to be “transitory” as Fed Chairman Ben Bernanke has forecast, it already has the look of a more problematic slowdown. Still, the world isn’t about to come apart at the seams, and we would assess the risk of a slide back into recession as less than a 25% probability, on the order of the chances of a robust expansion. This leaves the “muddle through” recovery as the most likely scenario for 2011-12, in our view. U.S. corporations have demonstrated an ability to generate growing profits in such an environment, and we look for that increasing profitability to be a big reason to expect stocks to continue to climb the proverbial wall of worry in the second half of this year and the first half of 2012. If you have any questions or suggestions on how we can better serve your investment and wealth management needs, please let me know.
Sincerely,
Peter M. Donovan
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, 2011 – June 30, 2011).
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
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|
EQUITY FUNDS
|
FIXED INCOME FUNDS
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|||||||||
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Wright Selected Blue Chip Equities Fund
|
Wright Total Return Bond Fund
|
|||||||||
|
Beginning
|
Ending
|
Expenses Paid
|
Beginning
|
Ending
|
Expenses Paid
|
|||||
|
Account Value
|
Account Value
|
During Period*
|
Account Value
|
Account Value
|
During Period*
|
|||||
| (1/1/11) | (6/30/11) |
(1/1/11-6/30/11)
|
(1/1/11)
|
(6/30/11)
|
(1/1/11-6/30/11)
|
|||||
|
Actual Fund Shares
|
$1,000.00
|
$1,083.66
|
$7.23
|
Actual Fund Shares
|
$1,000.00
|
$1,027.63
|
$4.78
|
|||
|
Hypothetical (5% return per year before expenses)
|
Hypothetical (5% return per year before expenses)
|
|||||||||
|
Fund Shares
|
$1,000.00
|
$1,017.85
|
$7.00
|
Fund Shares
|
$1,000.00
|
$1,020.08
|
$4.76
|
|||
|
*Expenses are equal to the Fund’s annualized expense ratio of 1.40% multiplied by the average account value over the period, multiplied by 184/365 (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, 2010.
|
*Expenses are equal to the Fund’s annualized expense ratio of 0.95% multiplied by the average account value over the period, multiplied by 184/365 (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, 2010.
|
|||||||||
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Wright Major Blue Chip Equities Fund
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Wright Current Income Fund
|
|||||||||
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Beginning
|
Ending
|
Expenses Paid
|
Beginning
|
Ending
|
Expenses Paid
|
|||||
|
Account Value
|
Account Value
|
During Period*
|
Account Value
|
Account Value
|
During Period*
|
|||||
| (1/1/11) |
(6/30/11)
|
(1/1/11-6/30/11)
|
(1/1/11) |
(6/30/11)
|
(1/1/11-6/30/11)
|
|||||
|
Actual Fund Shares
|
$1,000.00
|
$1,073.47
|
$7.25
|
Actual Fund Shares
|
$1,000.00
|
$1,029.93
|
$4.53
|
|||
|
Hypothetical (5% return per year before expenses)
|
Hypothetical (5% return per year before expenses)
|
|||||||||
|
Fund Shares
|
$1,000.00
|
$1,017.80
|
$7.05
|
Fund Shares
|
$1,000.00
|
$1,020.33
|
$4.51
|
|||
|
*Expenses are equal to the Fund’s annualized expense ratio of 1.41% multiplied by the average account value over the period, multiplied by 184/365 (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, 2010.
|
*Expenses are equal to the Fund’s annualized expense ratio of 0.90% multiplied by the average account value over the period, multiplied by 184/365 (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, 2010.
|
|||||||||
|
Wright International Blue Chip Equities Fund
|
||||||||||
|
Beginning
|
Ending
|
Expenses Paid
|
||||||||
|
Account Value
|
Account Value
|
During Period*
|
||||||||
| (1/1/11) |
(6/30/11)
|
(1/1/11-6/30/11)
|
||||||||
|
Actual Fund Shares
|
$1,000.00
|
$1,046.20
|
$9.03
|
|||||||
|
Hypothetical (5% return per year before expenses)
|
||||||||||
|
Fund Shares
|
$1,000.00
|
$1,015.97
|
$8.90
|
|||||||
|
*Expenses are equal to the Fund’s annualized expense ratio of 1.78% multiplied by the average account value over the period, multiplied by 184/365 (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, 2010.
|
||||||||||
| 5 |
|
Wright Selected Blue Chip Equities Fund (WSBC)
Portfolio of Investments - As of June 30, 2011
|
|
Shares
|
Value
|
Shares
|
Value
|
|||||||||||||||||||
|
EQUITY INTERESTS - 98.9%
|
HOUSEHOLD & PERSONAL PRODUCTS - 0.7%
|
|||||||||||||||||||||
|
Energizer Holdings, Inc.*
|
3,280
|
$
|
237,341
|
|||||||||||||||||||
|
BorgWarner, Inc.*
|
1,845
|
$
|
149,058
|
INSURANCE - 6.3%
|
||||||||||||||||||
|
American Financial Group, Inc.
|
7,875
|
$
|
281,059
|
|||||||||||||||||||
|
Everest Re Group, Ltd.
|
1,565
|
127,939
|
||||||||||||||||||||
|
BANKS - 4.6%
|
HCC Insurance Holdings, Inc.
|
14,340
|
451,710
|
|||||||||||||||||||
|
Commerce Bancshares, Inc.
|
7,779
|
$
|
334,497
|
Reinsurance Group of America, Inc.
|
5,075
|
308,864
|
||||||||||||||||
|
East West Bancorp, Inc.
|
17,335
|
350,340
|
StanCorp Financial Group, Inc.
|
7,820
|
329,926
|
|||||||||||||||||
|
Fulton Financial Corp.
|
73,550
|
787,721
|
WR Berkley Corp.
|
16,752
|
543,435
|
|||||||||||||||||
|
$
|
1,472,558
|
$
|
2,042,933
|
|||||||||||||||||||
|
CAPITAL GOODS - 11.3%
|
MATERIALS - 7.5%
|
|||||||||||||||||||||
|
BE Aerospace, Inc.*
|
11,785
|
$
|
480,946
|
Albemarle Corp.
|
2,600
|
$
|
179,920
|
|||||||||||||||
|
Hubbell, Inc. - Class B
|
5,260
|
341,637
|
Ashland, Inc.
|
7,165
|
463,002
|
|||||||||||||||||
|
KBR, Inc.
|
27,820
|
1,048,536
|
Cytec Industries, Inc.
|
2,625
|
150,124
|
|||||||||||||||||
|
Pentair, Inc.
|
5,345
|
215,724
|
Lubrizol Corp.
|
3,595
|
482,701
|
|||||||||||||||||
|
Regal-Beloit Corp.
|
3,940
|
263,074
|
Packaging Corp. of America
|
3,780
|
105,802
|
|||||||||||||||||
|
SPX Corp.
|
1,200
|
99,192
|
Reliance Steel & Aluminum Co.
|
2,305
|
114,443
|
|||||||||||||||||
|
Thomas & Betts Corp.*
|
10,690
|
575,656
|
Rock-Tenn Co., Class A
|
5,160
|
342,314
|
|||||||||||||||||
|
Timken Co.
|
4,610
|
232,344
|
Temple-Inland, Inc.
|
9,865
|
293,385
|
|||||||||||||||||
|
URS Corp.*
|
8,985
|
401,989
|
Valspar Corp.
|
7,745
|
279,285
|
|||||||||||||||||
|
$
|
3,659,098
|
$
|
2,410,976
|
|||||||||||||||||||
|
CONSUMER DURABLES & APPAREL - 0.7%
|
PHARMACEUTICALS & BIOTECHNOLOGY - 4.8%
|
|||||||||||||||||||||
|
Phillips-Van Heusen Corp.
|
3,600
|
$
|
235,692
|
Endo Pharmaceuticals Holdings, Inc.*
|
23,510
|
$
|
944,397
|
|||||||||||||||
|
Medicis Pharmaceutical Corp. –
|
11,125
|
424,641
|
||||||||||||||||||||
|
Class A
|
||||||||||||||||||||||
|
CONSUMER SERVICES - 4.5%
|
Perrigo Co.
|
2,115
|
185,845
|
|||||||||||||||||||
|
Brinker International, Inc.
|
26,915
|
$
|
658,341
|
$
|
1,554,883
|
|||||||||||||||||
|
Cheesecake Factory, Inc. (The)*
|
4,665
|
146,341
|
||||||||||||||||||||
|
ITT Educational Services, Inc.*
|
4,000
|
312,960
|
||||||||||||||||||||
|
Service Corp. International
|
17,335
|
202,473
|
REAL ESTATE - 7.4%
|
|||||||||||||||||||
|
Sotheby's
|
3,500
|
152,250
|
Hospitality Properties Trust (REIT)
|
16,660
|
$
|
404,005
|
||||||||||||||||
|
$
|
1,472,365
|
Jones Lang LaSalle, Inc.
|
11,080
|
1,044,844
|
||||||||||||||||||
|
Rayonier, Inc. (REIT)
|
14,265
|
932,218
|
||||||||||||||||||||
|
$
|
2,381,067
|
|||||||||||||||||||||
|
DIVERSIFIED FINANCIALS - 1.2%
|
||||||||||||||||||||||
|
Affiliated Managers Group, Inc.*
|
3,870
|
$
|
392,611
|
|||||||||||||||||||
|
RETAILING - 10.4%
|
||||||||||||||||||||||
|
Advance Auto Parts, Inc.
|
10,165
|
$
|
594,551
|
|||||||||||||||||||
|
ENERGY - 5.0%
|
American Eagle Outfitters, Inc.
|
16,225
|
206,869
|
|||||||||||||||||||
|
Cimarex Energy Co.
|
8,595
|
$
|
772,862
|
Ascena Retail Group, Inc.*
|
3,870
|
131,773
|
||||||||||||||||
|
Frontier Oil Corp.
|
7,800
|
252,018
|
Dick's Sporting Goods, Inc.*
|
4,430
|
170,333
|
|||||||||||||||||
|
Oceaneering International, Inc.
|
7,180
|
290,790
|
Dollar Tree, Inc.*
|
5,987
|
398,854
|
|||||||||||||||||
|
Southern Union Co.
|
5,345
|
214,602
|
Foot Locker, Inc.
|
11,430
|
271,577
|
|||||||||||||||||
|
Superior Energy Services, Inc.*
|
2,770
|
102,878
|
Guess?, Inc.
|
4,700
|
197,682
|
|||||||||||||||||
|
$
|
1,633,150
|
PetSmart, Inc.
|
3,780
|
171,499
|
||||||||||||||||||
|
Rent-A-Center, Inc.
|
11,060
|
337,993
|
||||||||||||||||||||
|
Ross Stores, Inc.
|
9,865
|
790,384
|
||||||||||||||||||||
|
FOOD, BEVERAGE & TOBACCO - 3.3%
|
Williams-Sonoma, Inc.
|
2,210
|
80,643
|
|||||||||||||||||||
|
Corn Products International, Inc.
|
13,115
|
$
|
724,997
|
$
|
3,352,158
|
|||||||||||||||||
|
Ralcorp Holdings, Inc.*
|
3,990
|
345,454
|
||||||||||||||||||||
|
$
|
1,070,451
|
|||||||||||||||||||||
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 5.2%
|
||||||||||||||||||||||
|
Atmel Corp.*
|
21,670
|
$
|
304,897
|
|||||||||||||||||||
|
HEALTH CARE EQUIPMENT & SERVICES - 6.0%
|
Fairchild Semiconductor International, Inc.*
|
18,815
|
314,399
|
|||||||||||||||||||
|
Health Net, Inc.*
|
4,385
|
$
|
140,715
|
Lam Research Corp.*
|
15,300
|
677,484
|
||||||||||||||||
|
Kinetic Concepts, Inc.*
|
6,915
|
398,511
|
RF Micro Devices, Inc.*
|
48,915
|
299,360
|
|||||||||||||||||
|
LifePoint Hospitals, Inc.*
|
9,125
|
356,605
|
Skyworks Solutions, Inc.*
|
3,225
|
74,110
|
|||||||||||||||||
|
Lincare Holdings, Inc.
|
18,885
|
552,764
|
$
|
1,670,250
|
||||||||||||||||||
|
Mednax, Inc.*
|
2,670
|
192,747
|
||||||||||||||||||||
|
Omnicare, Inc.
|
3,505
|
111,774
|
||||||||||||||||||||
|
Owens & Minor, Inc.
|
5,530
|
190,730
|
||||||||||||||||||||
|
$
|
1,943,846
|
|||||||||||||||||||||
| See Notes to Financial Statements . | 6 |
|
Wright Selected Blue Chip Equities Fund (WSBC)
Portfolio of Investments - As of June 30, 2011
|
|
Shares
|
Value
|
Portfolio Composition by Sector
|
|||||||||
|
SOFTWARE & SERVICES - 3.6%
|
% of total investments at June 30, 2011
|
||||||||||
|
Acxiom Corp.*
|
19,275
|
$
|
252,695
|
Financials
|
19.7%
|
||||||
|
Alliance Data Systems Corp.*
|
4,430
|
416,730
|
Consumer Discretionary
|
16.3%
|
|||||||
|
Synopsys, Inc.*
|
3,135
|
80,601
|
Information Technology
|
16.2%
|
|||||||
|
ValueClick, Inc.*
|
25,530
|
423,798
|
Industrials
|
12.8%
|
|||||||
|
$
|
1,173,824
|
Health Care
|
10.9%
|
||||||||
|
Materials
|
7.5%
|
||||||||||
|
Energy
|
7.5%
|
||||||||||
|
TECHNOLOGY HARDWARE & EQUIPMENT - 7.2%
|
Utilities
|
5.0%
|
|||||||||
|
Arrow Electronics, Inc.*
|
14,530
|
$
|
602,995
|
Consumer Staples
|
4.1%
|
||||||
|
Avnet, Inc.*
|
16,660
|
531,121
|
|||||||||
|
Ingram Micro, Inc. - Class A*
|
14,375
|
260,762
|
|||||||||
|
MICROS Systems, Inc.*
|
3,270
|
162,552
|
|||||||||
|
Tech Data Corp.*
|
3,685
|
180,160
|
|||||||||
|
Vishay Intertechnology, Inc.*
|
39,025
|
586,936
|
|||||||||
|
$
|
2,324,526
|
||||||||||
|
TRANSPORTATION - 1.4%
|
|||||||||||
|
Kansas City Southern*
|
7,470
|
$
|
443,195
|
||||||||
|
UTILITIES - 7.3%
|
|||||||||||
|
DPL, Inc.
|
31,805
|
$
|
959,239
|
||||||||
|
Energen Corp.
|
13,450
|
759,925
|
|||||||||
|
NV Energy, Inc.
|
7,200
|
110,520
|
|||||||||
|
Oneok, Inc.
|
5,070
|
375,231
|
|||||||||
|
UGI Corp.
|
5,350
|
170,611
|
|||||||||
|
$
|
2,375,526
|
||||||||||
|
TOTAL EQUITY INTERESTS - 98.9%
|
$
|
31,995,508
|
|||||||||
|
(identified cost, $26,489,069)
|
|||||||||||
|
SHORT-TERM INVESTMENTS - 1.0%
|
|||||||||||
|
Fidelity Government Money Market Fund, 0.01% (1)
|
326,707
|
$
|
326,707
|
||||||||
|
TOTAL SHORT-TERM INVESTMENTS - 1.0%
|
|||||||||||
|
(identified cost, $326,707)
|
$
|
326,707
|
|||||||||
|
TOTAL INVESTMENTS — 99.9%
|
|||||||||||
|
(identified cost, $26,815,776)
|
$
|
32,322,215
|
|||||||||
|
OTHER ASSETS, IN EXCESS OF LIABILITIES — 0.1%
|
22,823
|
||||||||||
|
NET ASSETS — 100.0%
|
$
|
32,345,038
|
|||||||||
|
REIT — Real Estate Investment Trust
|
|||||||||||
| * Non-income producing security. | |||||||||||
| (1) Variable rate security. Rate presented is as of June 30, 2011. | |||||||||||
| See Notes to Financial Statements . | 7 |
|
Wright Selected Blue Chip Equities Fund (WSBC)
|
|
As of June 30, 2011
|
For the Six Months Ended June 30, 2011
|
||||||||||||||
|
ASSETS:
|
|
INVESTMENT INCOME (Note 1C)
|
|||||||||||||
|
Investments, at value
|
0
|
Dividend income
|
$
|
163,401
|
|||||||||||
|
(identified cost $26,815,776) (Note 1A)
|
$
|
32,322,215
|
|
Total investment income
|
$
|
163,401
|
|||||||||
|
Receivable for fund shares sold
|
2,212
|
||||||||||||||
|
Dividends receivable
|
21,638
|
Expenses –
|
|||||||||||||
|
Prepaid expenses and other assets
|
22,094
|
Investment adviser fee (Note 3)
|
$
|
92,889
|
|||||||||||
|
Total assets
|
$
|
32,368,159
|
Administrator fee (Note 3)
|
18,578
|
|||||||||||
|
Trustee expense (Note 3)
|
7,756
|
||||||||||||||
|
LIABILITIES:
|
Custodian fee
|
1,539
|
|||||||||||||
|
Payable for fund shares reacquired
|
$
|
6,000
|
Accountant fees
|
20,421
|
|||||||||||
|
Accrued expenses and other liabilities
|
17,121
|
Distribution expenses (Note 4)
|
38,704
|
||||||||||||
|
Total liabilities
|
$
|
23,121
|
Transfer agent fees
|
18,421
|
|||||||||||
|
NET ASSETS
|
$
|
32,345,038
|
Printing
|
51
|
|||||||||||
|
Shareholder communications
|
3,045
|
||||||||||||||
|
NET ASSETS CONSIST OF:
|
Audit services
|
11,339
|
|||||||||||||
|
Paid-in capital
|
$
|
25,880,502
|
Legal services
|
4,257
|
|||||||||||
|
Accumulated net realized gain on investments
|
1,011,559
|
Registration costs
|
9,760
|
||||||||||||
|
Accumulated net investment loss
|
(53,462
|
)
|
Interest expense (Note 8)
|
121
|
|||||||||||
|
Unrealized appreciation on investments
|
5,506,439
|
Miscellaneous
|
6,367
|
||||||||||||
|
Net assets applicable to outstanding shares
|
$
|
32,345,038
|
Total expenses
|
$
|
233,248
|
||||||||||
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
2,869,454
|
Deduct –
|
|||||||||||||
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
$
|
(16,385
|
)
|
||||||||||||
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
$
|
11.27
|
Net expenses
|
$
|
216,863
|
||||||||||
|
Net investment loss
|
$
|
(53,462
|
)
|
||||||||||||
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
|
||||||||||||||
|
|
Net realized gain on investment transactions
|
$
|
2,006,667
|
||||||||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
464,257
|
||||||||||||||
|
Net realized and unrealized gain on investments
|
$
|
2,470,924
|
|||||||||||||
|
Net increase in net assets from operations
|
$
|
2,417,462
|
|||||||||||||
| See Notes to Financial Statements. | 8 |
|
Wright Selected Blue Chip Equities Fund (WSBC)
|
|
Six Months Ended
|
Year Ended
|
|||||||||
|
June 30, 2011
|
December 31, 2010
|
|||||||||
|
INCREASE (DECREASE) IN NET ASSETS:
|
||||||||||
|
From operations –
|
||||||||||
|
Net investment loss
|
$
|
(53,462
|
)
|
$
|
(45,144
|
)
|
||||
|
0
|
Net realized gain on investment transactions
|
2,006,667
|
1,233,621
|
|||||||
| Net change in unrealized appreciation (depreciation) on investments |
464,257
|
2,909,492
|
||||||||
|
Net increase in net assets from operations
|
$
|
2,417,462
|
$
|
4,097,969
|
||||||
|
Distributions to shareholders (Note 2)
|
||||||||||
|
From net investment income
|
$
|
-
|
$
|
(17,380
|
)
|
|||||
|
Total distributions
|
$
|
-
|
$
|
(17,380
|
)
|
|||||
|
Net increase in net assets resulting from fund share transactions (Note 6)
|
$
|
1,557,121
|
$
|
7,526,879
|
||||||
|
Net increase in net assets
|
$
|
3,974,583
|
$
|
11,607,468
|
||||||
|
|
||||||||||
|
NET ASSETS:
|
||||||||||
|
At begining of period
|
28,370,455
|
16,762,987
|
||||||||
|
At end of period
|
$
|
32,345,038
|
$
|
28,370,455
|
||||||
|
ACCUMULATED NET INVESTMENT LOSS INCLUDED IN NET ASSETS AT END OF PERIOD
|
$
|
(53,462
|
)
|
$
|
-
|
|||||
| See Notes to Financial Statements. | 9 |
|
Wright Selected Blue Chip Equities Fund (WSBC)
|
|
Six Months Ended
June 30, 2011
|
Years Ended December 31,
|
||||||||||||||||||||
|
FINANCIAL HIGHLIGHTS
|
2010
|
2009
|
2008
|
2007
|
2006
|
||||||||||||||||
|
Net asset value, beginning of period
|
$
|
10.400
|
$
|
8.400
|
(1)
|
$
|
6.060
|
$
|
11.100
|
$
|
12.270
|
$
|
13.030
|
||||||||
|
Income (loss) from investment operations:
|
|||||||||||||||||||||
|
Net investment income (loss) (2)
|
(0.019
|
)
|
(0.022
|
)
|
0.011
|
(0.013
|
)
|
(0.013
|
)
|
(0.034
|
)
|
||||||||||
|
Net realized and unrealized gain (loss)
|
0.889
|
2.030
|
2.329
|
(1)
|
(4.121
|
)
|
1.340
|
0.529
|
|||||||||||||
|
Total income (loss) from investment
|
0.870
|
2.008
|
2.340
|
(1)
|
(4.134
|
1.327
|
0.495
|
||||||||||||||
|
operations
|
|||||||||||||||||||||
|
Less distributions:
|
|||||||||||||||||||||
|
From net investment income
|
—
|
(0.008
|
)
|
—
|
—
|
(0.016
|
)
|
—
|
|||||||||||||
|
From net realized gains
|
—
|
—
|
—
|
(0.906
|
)
|
(2.481
|
)
|
(1.255
|
)
|
||||||||||||
|
Total distributions
|
—
|
(0.008
|
)
|
—
|
(0.906
|
)
|
(2.497
|
)
|
(1.255
|
)
|
|||||||||||
|
Net asset value, end of period
|
$
|
11.270
|
$
|
10.400
|
$
|
8.400
|
(1)
|
$
|
6.060
|
$
|
11.100
|
$
|
12.270
|
||||||||
|
Total Return(3)
|
8.37
|
%(4)
|
23.93
|
%
|
38.61
|
%
|
(39.81
|
)%
|
11.59
|
%
|
3.77
|
%
|
|||||||||
|
Ratios/Supplemental Data(6):
|
|||||||||||||||||||||
|
Net assets, end of period (000 omitted)
|
$32,345
|
$28,370
|
$16,763
|
$13,364
|
$23,923
|
$38,352
|
|||||||||||||||
|
Ratios (As a percentage of
average daily net assets):
|
|||||||||||||
|
Net expenses
|
1.40
|
%(5)
|
1.40
|
%
|
1.36
|
%
|
1.26
|
%
|
1.26
|
%
|
1.26
|
%
|
|
|
Net expenses after custodian fee
|
N/A
|
N/A
|
1.36
|
%
|
1.25
|
%
|
1.25
|
%
|
1.25
|
%
|
|||
|
reduction
|
|||||||||||||
|
Net investment income (loss)
|
(0.35
|
)%(5)
|
(0.24
|
)%
|
0.15
|
%
|
(0.15
|
)%
|
(0.10
|
)%
|
(0.27
|
)%
|
|
|
Portfolio turnover rate
|
39
|
%(4)
|
60
|
%
|
41
|
%
|
72
|
%
|
67
|
%
|
66
|
%
|
|
|
|
|
||||||||||||||||||||||||||||||
|
(1)
|
Previously reported amount has been changed by 0.002 to reflect rounding consistencies.
|
||||||||||||||||||||||||||||||
|
(2)
|
Computed using average shares outstanding.
|
||||||||||||||||||||||||||||||
|
(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 the six months ended June 30, 2011, and for the years ended December 31, 2010, 2009, 2008, 2007 and 2006, 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 loss ratios would have been as follows:
|
||||||||||||||||||||||||||||||
|
|
2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
|
|
Ratios (As a percentage of average daily net assets):
|
|||||||||||||||||||
|
Gross expenses
|
1.51
|
%(5)
|
1.79
|
%
|
2.15
|
%
|
1.90
|
%
|
1.66
|
%
|
1.46
|
%
|
|||||||
|
Gross expenses after custodian fee
|
N/A
|
N/A
|
2.15
|
%
|
1.89
|
%
|
1.66
|
%
|
1.44
|
%
|
|||||||||
|
reduction
|
|||||||||||||||||||
|
Net investment loss
|
(0.45
|
)%(5)
|
(0.63
|
)%
|
(0.64
|
)%
|
(0.79
|
)%
|
(0.51
|
)%
|
(0.46
|
)%
|
|||||||
| See Notes to Financial Statements. | 10 |
|
Wright Major Blue Chip Equities Fund (WMBC)
Portfolio of Investments - As of June 30, 2011
|
|
Shares
|
Value
|
Shares
|
Value
|
|||||||||
|
PHARMACEUTICALS & BIOTECHNOLOGY - 10.4%
|
||||||||||||
|
EQUITY INTERESTS - 98.8%
|
Amgen, Inc.*
|
11,760
|
$
|
686,196
|
||||||||
|
Endo Pharmaceuticals Holdings, Inc.*
|
13,760
|
552,739
|
||||||||||
|
Johnson & Johnson
|
12,960
|
862,099
|
||||||||||
|
$
|
2,101,034
|
|||||||||||
|
Cummins, Inc.
|
5,450
|
$
|
564,020
|
|||||||||
|
Fluor Corp.
|
7,510
|
485,597
|
||||||||||
|
General Dynamics Corp.
|
8,375
|
624,105
|
RETAILING - 5.3%
|
|||||||||
|
Precision Castparts Corp.
|
3,920
|
645,428
|
Amazon.com, Inc.*
|
510
|
$
|
104,290
|
||||||
|
$
|
2,319,150
|
Best Buy Co., Inc.
|
7,790
|
244,684
|
||||||||
|
Priceline.com, Inc.*
|
195
|
99,826
|
||||||||||
|
Tiffany & Co.
|
7,970
|
625,805
|
||||||||||
|
CONSUMER DURABLES & APPAREL - 7.1%
|
$
|
1,074,605
|
||||||||||
|
Fossil, Inc.*
|
1,465
|
$
|
172,460
|
|||||||||
|
Garmin, Ltd.
|
14,955
|
493,963
|
||||||||||
|
NIKE, Inc. - Class B
|
1,610
|
144,868
|
SOFTWARE & SERVICES - 10.0%
|
|||||||||
|
Polo Ralph Lauren Corp.
|
4,720
|
625,919
|
Akamai Technologies, Inc.*
|
2,990
|
$
|
94,096
|
||||||
|
$
|
1,437,210
|
Factset Research Systems, Inc.
|
910
|
93,111
|
||||||||
|
Google, Inc. - Class A*
|
1,195
|
605,124
|
||||||||||
|
Microsoft Corp.
|
34,560
|
898,560
|
||||||||||
|
CONSUMER SERVICES - 1.0%
|
Oracle Corp.
|
10,035
|
330,252
|
|||||||||
|
WMS Industries, Inc.*
|
6,380
|
$
|
195,994
|
$
|
2,021,143
|
|||||||
|
DIVERSIFIED FINANCIALS - 7.0%
|
TECHNOLOGY HARDWARE & EQUIPMENT - 8.7%
|
|||||||||||
|
CME Group, Inc.
|
2,220
|
$
|
647,330
|
Apple, Inc.*
|
665
|
$
|
223,221
|
|||||
|
Ezcorp, Inc. - Class A*
|
18,395
|
654,402
|
Cisco Systems, Inc.
|
40,930
|
638,917
|
|||||||
|
IntercontinentalExchange, Inc.*
|
840
|
104,756
|
Cognizant Technology Solutions Corp., Class A*
|
1,320
|
96,809
|
|||||||
|
$
|
1,406,488
|
Dolby Laboratories, Inc., Class A*
|
1,995
|
84,708
|
||||||||
|
First Solar, Inc.*
|
815
|
107,800
|
||||||||||
|
Western Digital Corp.*
|
16,835
|
612,457
|
||||||||||
|
ENERGY - 14.8%
|
$
|
1,763,912
|
||||||||||
|
Atwood Oceanics, Inc.*
|
12,965
|
$
|
572,146
|
|||||||||
|
Helmerich & Payne, Inc.
|
8,970
|
593,096
|
||||||||||
|
Murphy Oil Corp.
|
9,070
|
595,536
|
TRANSPORTATION - 3.5%
|
|||||||||
|
National Oilwell Varco, Inc.
|
8,110
|
634,283
|
CH Robinson Worldwide, Inc.
|
1,260
|
$
|
99,338
|
||||||
|
Noble Corp.
|
14,820
|
584,056
|
Kirby Corp.*
|
10,700
|
606,369
|
|||||||
|
$
|
2,979,117
|
$
|
705,707
|
|||||||||
|
TOTAL EQUITY INTERESTS - 98.8%
|
||||||||||||
|
FOOD & STAPLES RETAILING - 3.2%
|
(identified cost, $19,354,081)
|
$
|
19,950,193
|
|||||||||
|
Walgreen Co.
|
15,015
|
$
|
637,537
|
|||||||||
|
SHORT-TERM INVESTMENTS - 1.1%
|
||||||||||||
|
Fidelity Government Money Market Fund, 0.01% (1)
|
213,970
|
$
|
213,970
|
|||||||||
|
FOOD, BEVERAGE & TOBACCO - 1.3%
|
||||||||||||
|
Coca-Cola Co. (The)
|
4,055
|
$
|
272,861
|
TOTAL SHORT-TERM INVESTMENTS - 1.1%
|
||||||||
|
(identified cost, $213,970)
|
$
|
213,970
|
||||||||||
|
HEALTH CARE EQUIPMENT & SERVICES - 3.9%
|
TOTAL INVESTMENTS — 99.9%
|
|||||||||||
|
Amedisys, Inc.*
|
3,595
|
$
|
95,735
|
(identified cost, $19,568,051)
|
$
|
20,164,163
|
||||||
|
Amsurg Corp.*
|
3,125
|
81,656
|
||||||||||
|
Becton Dickinson and Co.
|
605
|
52,133
|
OTHER ASSETS, IN EXCESS OF LIABILITIES — 0.1%
|
25,910
|
||||||||
|
Intuitive Surgical, Inc.*
|
265
|
98,609
|
||||||||||
|
Stryker Corp.
|
7,975
|
468,053
|
NET ASSETS — 100.0%
|
$
|
20,190,073
|
|||||||
|
$
|
796,186
|
|||||||||||
|
* Non-income producing security.
|
|
|||||||||||
|
(1) Variable rate security. Rate presented is as of June 30, 2011.
|
||||||||||||
|
INSURANCE - 8.1%
|
||||||||||||
|
Aflac, Inc.
|
1,795
|
$
|
83,791
|
|||||||||
|
Arch Capital Group, Ltd.*
|
16,945
|
540,884
|
||||||||||
|
PartnerRe, Ltd.
|
8,060
|
554,931
|
||||||||||
|
RenaissanceRe Holdings, Ltd.
|
6,380
|
446,281
|
||||||||||
|
$
|
1,625,887
|
|||||||||||
|
MATERIALS - 3.0%
|
||||||||||||
|
Freeport-McMoRan Copper & Gold, Inc.
|
9,435
|
$
|
499,111
|
|||||||||
|
Monsanto Co.
|
1,575
|
114,251
|
||||||||||
|
$
|
613,362
|
|||||||||||
| See Notes to Financial Statements. | 11 |
|
Wright Major Blue Chip Equities Fund (WMBC)
Portfolio of Investments - As of June 30, 2011
|
|
Portfolio Composition by Sector
|
|
|
% of total investments at June 30, 2011
|
|
|
Information Technology
|
18.9%
|
|
Financials
|
15.2%
|
|
Industrials
|
15.2%
|
|
Energy
|
14.9%
|
|
Health Care
|
14.5%
|
|
Consumer Discretionary
|
13.6%
|
|
Consumer Staples
|
4.6%
|
|
Materials
|
3.1%
|
| See Notes to Financial Statements. | 12 |
|
Wright Major Blue Chip Equities Fund (WMBC)
|
|
As of June 30, 2011
|
For the Six Months Ended June 30, 2011
|
|||||||||||||||||
|
ASSETS:
|
FALSE
|
INVESTMENT INCOME (Note 1C)
|
||||||||||||||||
|
Investments, at value
|
0
|
Dividend income
|
$
|
123,758
|
||||||||||||||
|
(identified cost $19,568,051) (Note 1A)
|
$
|
20,164,163
|
######
|
Total investment income
|
$
|
123,758
|
||||||||||||
|
Receivable for fund shares sold
|
1,225
|
|||||||||||||||||
|
Dividends receivable
|
13,307
|
Expenses –
|
||||||||||||||||
|
Prepaid expenses and other assets
|
22,491
|
Investment adviser fee (Note 3)
|
$
|
62,890
|
||||||||||||||
|
Total assets
|
$
|
20,201,186
|
Administrator fee (Note 3)
|
12,578
|
||||||||||||||
|
Trustee expense (Note 3)
|
6,992
|
|||||||||||||||||
|
LIABILITIES:
|
Custodian fee
|
2,403
|
||||||||||||||||
|
Accrued expenses and other liabilities
|
11,113
|
Accountant fees
|
18,137
|
|||||||||||||||
|
Total liabilities
|
$
|
11,113
|
Distribution expenses (Note 4)
|
26,204
|
||||||||||||||
|
NET ASSETS
|
$
|
20,190,073
|
Transfer agent fees
|
15,927
|
||||||||||||||
|
Printing
|
52
|
|||||||||||||||||
|
NET ASSETS CONSIST OF:
|
Shareholder communications
|
2,311
|
||||||||||||||||
|
Paid-in capital
|
$
|
24,989,882
|
Audit services
|
10,037
|
||||||||||||||
|
Accumulated net realized loss on investments
|
(5,372,009
|
)
|
Legal services
|
2,791
|
||||||||||||||
|
Accumulated net investment loss
|
(23,912
|
)
|
Registration costs
|
9,036
|
||||||||||||||
|
Unrealized appreciation on investments
|
596,112
|
Interest expense (Note 8)
|
927
|
|||||||||||||||
|
Net assets applicable to outstanding shares
|
$
|
20,190,073
|
Miscellaneous
|
5,023
|
||||||||||||||
|
Total expenses
|
$
|
175,308
|
||||||||||||||||
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
1,535,061
|
|||||||||||||||||
|
Deduct –
|
||||||||||||||||||
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
$
|
13.15
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
$
|
(27,638
|
)
|
||||||||||||
|
Net expenses
|
$
|
147,670
|
||||||||||||||||
|
Net investment loss
|
$
|
(23,912
|
)
|
|||||||||||||||
|
|
||||||||||||||||||
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
|
|||||||||||||||||
|
Net realized gain on investment transactions
|
$
|
2,682,533
|
||||||||||||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
(1,137,081
|
)
|
||||||||||||||||
|
Net realized and unrealized gain on investments
|
$
|
1,545,452
|
||||||||||||||||
|
Net increase in net assets from operations
|
$
|
1,521,540
|
||||||||||||||||
| See Notes to Financial Statements. | 13 |
|
Wright Major Blue Chip Equities Fund (WMBC)
|
|
Six Months Ended
|
Year Ended
|
|||||||||
|
STATEMENTS OF CHANGES IN NET ASSETS
|
June 30, 2011
|
December 31, 2010
|
||||||||
|
INCREASE (DECREASE) IN NET ASSETS:
|
||||||||||
|
From operations –
|
||||||||||
|
Net investment income (loss)
|
$
|
(23,912
|
)
|
$
|
92,781
|
|||||
|
0
|
Net realized gain on investment transactions
|
2,682,533
|
1,024,058
|
|||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
(1,137,081
|
)
|
1,503,779
|
|||||||
|
Net increase in net assets from operations
|
$
|
1,521,540
|
$
|
2,620,618
|
||||||
|
Distributions to shareholders (Note 2)
|
||||||||||
|
From net investment income
|
$
|
-
|
$
|
(94,651
|
)
|
|||||
|
Total distributions
|
$
|
-
|
$
|
(94,651
|
)
|
|||||
|
Net decrease in net assets resulting from fund share transactions (Note 6)
|
$
|
(3,007,478
|
)
|
$
|
(8,187,311
|
)
|
||||
|
Net decrease in net assets
|
$
|
(1,485,938
|
)
|
$
|
(5,661,344
|
)
|
||||
|
|
||||||||||
|
NET ASSETS:
|
||||||||||
|
At begining of period
|
21,676,011
|
27,337,355
|
||||||||
|
At end of period
|
$
|
20,190,073
|
$
|
21,676,011
|
||||||
|
ACCUMULATED NET INVESTMENT LOSS INCLUDED IN NET ASSETS AT END OF PERIOD
|
$
|
(23,912
|
)
|
$
|
-
|
|||||
| See Notes to Financial Statements. | 14 |
|
Wright Major Blue Chip Equities Fund (WMBC)
|
|
Six Months Ended
June 30, 2011
|
Years Ended December 31,
|
|||||||||||||||||||
|
FINANCIAL HIGHLIGHTS
|
2010
|
2009
|
2008
|
2007
|
2006
|
|||||||||||||||
|
Net asset value, beginning of period
|
$
|
12.250
|
$
|
10.870
|
(1)
|
$
|
9.340
|
$
|
14.520
|
$
|
13.790
|
$
|
12.420
|
|||||||
|
Income (loss) from investment operations:
|
||||||||||||||||||||
|
Net investment income (loss) (2)
|
(0.015
|
)
|
0.044
|
0.099
|
0.104
|
0.091
|
0.062
|
|||||||||||||
|
Net realized and unrealized gain (loss)
|
0.915
|
1.389
|
1.564
|
(1)
|
(5.169
|
)
|
0.728
|
1.374
|
||||||||||||
|
Total income (loss) from investment
|
0.900
|
1.433
|
1.663
|
(1)
|
(5.065
|
0.819
|
1.436
|
|||||||||||||
|
operations
|
||||||||||||||||||||
|
Less distributions:
|
||||||||||||||||||||
|
From net investment income
|
—
|
(0.053
|
)
|
(0.133
|
)
|
(0.115
|
)
|
(0.089
|
)
|
(0.066
|
)
|
|||||||||
|
Net asset value, end of period
|
$
|
13.150
|
$
|
12.250
|
$
|
10.870
|
(1)
|
$
|
9.340
|
$
|
14.520
|
$
|
13.790
|
|||||||
|
Total Return(3)
|
7.35
|
%(4)
|
13.19
|
%
|
17.83
|
%
|
(34.85
|
)%
|
5.96
|
%
|
11.57
|
%
|
||||||||
|
Ratios/Supplemental Data(6):
|
||||||||||||||||||||
|
Net assets, end of period (000 omitted)
|
$20,190
|
$21,676
|
$27,337
|
$32,484
|
$57,750
|
$63,276
|
||||||||||||||
|
Ratios (As a percentage of
average daily net assets):
|
||||||||||||||||||||
|
Net expenses
|
1.41
|
%(5)
|
1.41
|
%
|
1.36
|
%
|
1.26
|
%
|
1.26
|
%
|
1.26
|
%
|
||||||||
|
Net expenses after custodian fee
|
N/A
|
N/A
|
1.36
|
%
|
1.25
|
%
|
1.25
|
%
|
1.25
|
%
|
||||||||||
|
reduction
|
||||||||||||||||||||
|
Net investment income (loss)
|
(0.23
|
)%(5)
|
0.39
|
%
|
1.06
|
%
|
0.86
|
%
|
0.63
|
%
|
0.48
|
%
|
||||||||
|
Portfolio turnover rate
|
113
|
%(4)
|
68
|
%
|
69
|
%
|
58
|
%
|
55
|
%
|
97
|
%
|
||||||||
|
|
||||||||||||||||||||
|
(1)
|
Previously reported amount has been changed by 0.002 to reflect rounding consistencies.
|
|||||||||||||||||||
|
(2)
|
Computed using average shares outstanding.
|
|||||||||||||||||||
|
(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 the six months ended June 30, 2011, and for the years ended December 31, 2010, 2009, 2008, 2007 and 2006, 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:
|
|||||||||||||||||||
|
2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
|||||||||||||||
|
Ratios (As a percentage of
average daily net assets):
|
||||||||||||||||||||
|
Gross expenses
|
1.67
|
%(5)
|
1.68
|
%
|
1.55
|
%
|
1.37
|
%
|
1.28
|
%
|
1.28
|
%
|
||||||||
|
Gross expenses after custodian fee
|
N/A
|
N/A
|
1.55
|
%
|
1.36
|
%
|
1.27
|
%
|
1.27
|
%
|
||||||||||
|
reduction
|
||||||||||||||||||||
|
Net investment income (loss)
|
(0.49
|
)%(5)
|
0.13
|
%
|
0.86
|
%
|
0.75
|
%
|
0.61
|
%
|
0.46
|
%
|
||||||||
|
|
||||||||||||||||||||
| See Notes to Financial Statements. | 15 |
|
Wright International Blue Chip Equities Fund (WIBC)
Portfolio of Investments - As of June 30, 2011
|
|
Shares
|
Value
|
Shares
|
Value
|
|||||||||
|
GERMANY - 8.6%
|
||||||||||||
|
EQUITY INTERESTS - 99.7%
|
Adidas AG
|
3,217
|
$
|
254,243
|
||||||||
|
Allianz SE
|
1,575
|
219,971
|
||||||||||
|
BASF SE
|
15,212
|
1,484,308
|
||||||||||
|
Bayer AG
|
4,614
|
370,872
|
||||||||||
|
Australia & New Zealand Banking Group, Ltd.*
|
8,209
|
$
|
193,348
|
Fresenius SE & Co. KGaA
|
2,656
|
277,566
|
||||||
|
Commonwealth Bank of Australia
|
11,218
|
628,123
|
Henkel AG & Co. KGaA (Preferred Stock), 0.72%
|
2,622
|
181,617
|
|||||||
|
Rio Tinto, Ltd.
|
12,076
|
1,072,941
|
Infineon Technologies AG
|
28,196
|
316,533
|
|||||||
|
Westpac Banking Corp.
|
6,928
|
165,105
|
Muenchener Rueckversicherungs AG - Class R
|
2,231
|
340,766
|
|||||||
|
$
|
2,059,517
|
Siemens AG
|
1,848
|
253,330
|
||||||||
|
Volkswagen AG
|
797
|
146,683
|
||||||||||
|
$
|
3,845,889
|
|||||||||||
|
BELGIUM - 1.5%
|
||||||||||||
|
Delhaize Group SA
|
8,818
|
$
|
660,972
|
|||||||||
|
HONG KONG - 3.6%
|
||||||||||||
|
Cheung Kong Holdings, Ltd.
|
48,000
|
$
|
701,995
|
|||||||||
|
BRAZIL - 0.5%
|
Guangdong Investment, Ltd.
|
398,000
|
212,778
|
|||||||||
|
Cia de Bebidas das Americas, ADR
|
6,977
|
$
|
235,334
|
Techtronic Industries Co.
|
145,500
|
173,712
|
||||||
|
Yue Yuen Industrial Holdings, Ltd.
|
165,000
|
523,759
|
||||||||||
|
$
|
1,612,244
|
|||||||||||
|
CANADA - 6.9%
|
||||||||||||
|
Agrium, Inc.
|
1,471
|
$
|
129,084
|
|||||||||
|
Bank of Nova Scotia
|
7,099
|
427,367
|
ISRAEL - 0.8%
|
|||||||||
|
Canadian National Railway Co.
|
3,455
|
276,157
|
Teva Pharmaceutical Industries, Ltd., ADR
|
7,341
|
$
|
353,983
|
||||||
|
CGI Group, Inc. - Class A*
|
19,063
|
470,304
|
||||||||||
|
First Quantum Minerals, Ltd.
|
1,511
|
220,160
|
||||||||||
|
Nexen, Inc.
|
8,989
|
202,252
|
ITALY - 3.3%
|
|||||||||
|
Teck Resources, Ltd. - Class B
|
7,021
|
356,615
|
Enel SpA
|
115,244
|
$
|
752,557
|
||||||
|
Toronto-Dominion Bank (The)
|
11,475
|
972,361
|
ENI SpA (Azioni Ordinarie)
|
29,492
|
697,399
|
|||||||
|
$
|
3,054,300
|
$
|
1,449,956
|
|||||||||
|
CHINA - 4.1%
|
JAPAN - 16.9%
|
|||||||||||
|
Baidu, Inc., ADR*
|
4,577
|
$
|
641,375
|
Aisin Seiki Co., Ltd.
|
3,900
|
$
|
149,703
|
|||||
|
China Petroleum & Chemical Corp., ADR
|
2,210
|
224,182
|
Brother Industries, Ltd.
|
14,100
|
206,891
|
|||||||
|
China Railway Construction Corp., Ltd. - Class H
|
279,000
|
233,419
|
Daito Trust Construction Co., Ltd.
|
4,700
|
396,322
|
|||||||
|
CNOOC, Ltd., ADR
|
1,058
|
249,614
|
Honda Motor Co., Ltd.
|
17,800
|
679,953
|
|||||||
|
ENN Energy Holdings, Ltd.
|
68,000
|
230,709
|
ITOCHU Corp.
|
84,700
|
873,639
|
|||||||
|
Xinyi Glass Holdings, Ltd.
|
236,000
|
233,839
|
Marubeni Corp.
|
67,000
|
441,357
|
|||||||
|
$
|
1,813,138
|
Mitsubishi Corp.
|
28,200
|
698,366
|
||||||||
|
Mitsui & Co., Ltd.
|
45,300
|
776,315
|
||||||||||
|
Mizuho Financial Group, Inc.
|
107,300
|
175,379
|
||||||||||
|
DENMARK - 1.7%
|
NHK Spring Co., Ltd.
|
19,000
|
192,682
|
|||||||||
|
Carlsberg A/S - Class B
|
7,078
|
$
|
769,767
|
Nippon Electric Glass Co., Ltd.
|
34,000
|
431,946
|
||||||
|
Nippon Telegraph & Telephone Corp.
|
8,100
|
387,649
|
||||||||||
|
Nippon Yusen KK
|
148,000
|
546,112
|
||||||||||
|
FINLAND - 0.6%
|
ORIX Corp.
|
1,410
|
136,007
|
|||||||||
|
Sampo OYJ - Class A
|
8,478
|
$
|
273,739
|
Shimamura Co., Ltd.
|
1,000
|
94,849
|
||||||
|
Sumitomo Corp.
|
71,000
|
957,392
|
||||||||||
|
USS Co., Ltd.
|
1,760
|
135,770
|
||||||||||
|
FRANCE - 10.2%
|
Yamada Denki Co., Ltd.
|
2,750
|
222,356
|
|||||||||
|
Alstom SA
|
2,872
|
$
|
177,052
|
$
|
7,502,688
|
|||||||
|
BNP Paribas SA
|
13,045
|
1,006,754
|
||||||||||
|
Bouygues SA
|
7,457
|
327,751
|
||||||||||
|
Cie Generale des Etablissements Michelin - Class B
|
5,204
|
508,836
|
NETHERLANDS - 2.4%
|
|||||||||
|
France Telecom SA
|
8,209
|
174,540
|
Aegon NV*
|
27,141
|
$
|
185,104
|
||||||
|
PPR
|
1,534
|
273,116
|
Fugro NV
|
5,079
|
366,128
|
|||||||
|
Renault SA
|
2,066
|
122,466
|
Koninklijke Vopak NV
|
10,909
|
534,436
|
|||||||
|
Sanofi
|
11,285
|
907,084
|
$
|
1,085,668
|
||||||||
|
Schneider Electric SA
|
2,013
|
336,216
|
||||||||||
|
Technip SA
|
1,435
|
153,814
|
||||||||||
|
Total SA
|
9,944
|
574,962
|
NORWAY - 1.2%
|
|||||||||
|
$
|
4,562,591
|
Telenor ASA
|
32,032
|
$
|
527,454
|
|||||||
| See Notes to Financial Statements. | 16 |
|
Wright International Blue Chip Equities Fund (WIBC)
Portfolio of Investments - As of June 30, 2011
|
|
Shares
|
Value
|
ADR — American Depository Receipt
|
|||||||
|
SINGAPORE - 1.9%
|
PLC — Public Limited Company
|
||||||||
|
Jardine Cycle & Carriage, Ltd.
|
16,000
|
$
|
560,443
|
||||||
|
Oversea-Chinese Banking Corp., Ltd.
|
36,000
|
274,487
|
* Non-income producing security. | ||||||
|
$
|
834,930
|
||||||||
|
Portfolio Composition by Sector
|
|||||||||
|
SPAIN - 2.8%
|
% of total investments at June 30, 2011
|
||||||||
|
Banco Santander SA
|
38,760
|
$
|
447,490
|
Financials
|
20.9%
|
||||
|
Repsol YPF SA
|
6,510
|
225,958
|
Industrials
|
14.5%
|
|||||
|
Telefonica SA
|
23,316
|
569,947
|
Consumer Discretionary
|
12.1%
|
|||||
|
$
|
1,243,395
|
Materials
|
11.9%
|
||||||
|
Energy
|
9.9%
|
||||||||
|
Health Care
|
8.4%
|
||||||||
|
SWEDEN - 2.7%
|
Consumer Staples
|
8.2%
|
|||||||
|
Getinge AB - Class B
|
11,757
|
$
|
316,374
|
Telecommunication Services
|
5.9%
|
||||
|
Svenska Handelsbanken AB - Class A
|
16,423
|
507,782
|
Information Technology
|
4.7%
|
|||||
|
Tele2 AB - Class B
|
9,929
|
196,690
|
Utilities
|
3.5%
|
|||||
|
TeliaSonera AB
|
22,723
|
167,090
|
|||||||
|
$
|
1,187,936
|
||||||||
|
SWITZERLAND - 8.0%
|
|||||||||
|
Nestle SA
|
29,180
|
$
|
1,810,754
|
||||||
|
Novartis AG
|
7,656
|
468,271
|
|||||||
|
Swatch Group AG (The)
|
1,673
|
842,063
|
|||||||
|
Swiss Reinsurance Co., Ltd.*
|
2,993
|
166,961
|
|||||||
|
Zurich Financial Services AG (Inhaberktie)*
|
1,001
|
252,747
|
|||||||
|
$
|
3,540,796
|
||||||||
|
UNITED KINGDOM - 17.4%
|
|||||||||
|
Anglo American PLC
|
5,181
|
$
|
256,813
|
||||||
|
AstraZeneca PLC
|
20,798
|
1,037,766
|
|||||||
|
Aviva PLC
|
72,793
|
513,040
|
|||||||
|
Barclays PLC (Ordinary)
|
89,657
|
369,134
|
|||||||
|
BG Group PLC
|
16,389
|
372,048
|
|||||||
|
BHP Billiton PLC
|
19,897
|
783,258
|
|||||||
|
BP PLC
|
90,835
|
668,855
|
|||||||
|
Centrica PLC
|
65,981
|
342,469
|
|||||||
|
Ensco PLC, ADR
|
4,200
|
223,860
|
|||||||
|
Eurasian Natural Resources Corp. PLC
|
39,410
|
494,462
|
|||||||
|
Investec PLC
|
54,000
|
437,373
|
|||||||
|
Legal & General Group PLC
|
178,971
|
339,623
|
|||||||
|
Rio Tinto PLC
|
2,490
|
179,511
|
|||||||
|
Royal Dutch Shell PLC - Class B
|
12,107
|
432,283
|
|||||||
|
Standard Chartered PLC
|
5,745
|
151,078
|
|||||||
|
Vodafone Group PLC
|
233,776
|
620,397
|
|||||||
|
WPP PLC
|
20,485
|
256,524
|
|||||||
|
Xstrata PLC
|
13,173
|
290,053
|
|||||||
|
$
|
7,768,547
|
||||||||
|
TOTAL EQUITY INTERESTS - 99.7%
|
$
|
44,382,844
|
|||||||
|
(identified cost, $36,258,086)
|
|||||||||
|
TOTAL INVESTMENTS — 99.7%
|
$
|
44,382,844
|
|||||||
|
(identified cost, $36,258,086)
|
|||||||||
|
OTHER ASSETS, IN EXCESS OF LIABILITIES — 0.3%
|
123,659
|
||||||||
|
NET ASSETS — 100.0%
|
$
|
44,506,503
|
| See Notes to Financial Statements. | 17 |
|
Wright International Blue Chip Equities Fund (WIBC)
|
|
As of June 30, 2011
|
For the Six Months Ended June 30, 2011
|
||||||||||||||
|
ASSETS:
|
INVESTMENT INCOME (Note 1C)
|
|
|||||||||||||
|
Investments, at value
|
0
|
Dividend income (net of foreign taxes $134,458)
|
$
|
967,243
|
|||||||||||
|
(identified cost $36,258,086) (Note 1A)
|
$
|
44,382,844
|
Income from securities lending (net)
|
32,659
|
|||||||||||
|
Foreign currency, at value
|
Total investment income
|
$
|
999,902
|
||||||||||||
|
(identified cost $26,303) (Note 1A)
|
26,352
|
||||||||||||||
|
Receivable for fund shares sold
|
1,296
|
Expenses –
|
|||||||||||||
|
Dividends receivable
|
62,159
|
Investment adviser fee (Note 3)
|
$
|
187,202
|
|||||||||||
|
Tax reclaims receivable
|
110,514
|
Administrator fee (Note 3)
|
39,780
|
||||||||||||
|
Prepaid expenses and other assets
|
27,900
|
Trustee expense (Note 3)
|
6,934
|
||||||||||||
|
Total assets
|
$
|
44,611,065
|
Custodian fee
|
23,885
|
|||||||||||
|
Accountant fees
|
30,555
|
||||||||||||||
|
LIABILITIES:
|
Distribution expenses (Note 4)
|
58,501
|
|||||||||||||
|
Outstanding line of credit (Note 8)
|
$
|
78,097
|
Transfer agent fees
|
27,495
|
|||||||||||
|
Payable to custodian
|
1,143
|
Printing
|
437
|
||||||||||||
|
Accrued expenses and other liabilities
|
25,322
|
Shareholder communications
|
4,361
|
||||||||||||
|
Total liabilities
|
$
|
104,562
|
Audit services
|
10,565
|
|||||||||||
|
NET ASSETS
|
$
|
44,506,503
|
Legal services
|
6,237
|
|||||||||||
|
Registration costs
|
8,992
|
||||||||||||||
|
NET ASSETS CONSIST OF:
|
Interest expense (Note 8)
|
1,415
|
|||||||||||||
|
Paid-in capital
|
$
|
88,084,979
|
Miscellaneous
|
9,285
|
|||||||||||
|
Accumulated net realized loss on investments and foreign currency
|
(52,195,122
|
)
|
Total expenses
|
$
|
415,644
|
||||||||||
|
Undistributed net investment income
|
478,530
|
||||||||||||||
|
Unrealized appreciation on investments and foreign currency
|
8,138,116
|
Net expenses
|
$
|
415,644
|
|||||||||||
|
Net assets applicable to outstanding shares
|
$
|
44,506,503
|
Net investment income
|
$
|
584,258
|
||||||||||
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
2,869,175
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
|
|||||||||||||
|
Net realized gain –
|
|||||||||||||||
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST*
|
$
|
15.51
|
Investment transactions
|
$
|
2,284,006
|
||||||||||
|
Foreign currency transactions
|
718
|
||||||||||||||
|
* Shares redeemed or exchanged within three months of
|
Net realized gain
|
$
|
2,284,724
|
||||||||||||
|
purchase are charged a 2.00% redemption fee.
|
|||||||||||||||
|
Change in unrealized appreciation (depreciation)
|
|||||||||||||||
|
|
Investments
|
$
|
(677,790
|
)
|
|||||||||||
|
|
Foreign currency translations
|
(7,951
|
)
|
||||||||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
$
|
(685,741
|
)
|
||||||||||||
|
Net realized and unrealized gain on investments and foreign currency translations
|
$
|
1,598,983
|
|||||||||||||
| Net increase in net assets from operations | $ | 2,183,241 | |||||||||||||
| See Notes to Financial Statements. | 18 |
|
Wright International Blue Chip Equities Fund (WIBC)
|
|
Six Months Ended
|
Year Ended
|
|||||||||
|
STATEMENTS OF CHANGES IN NET ASSETS
|
June 30, 2011
|
December 31, 2010
|
||||||||
|
INCREASE (DECREASE) IN NET ASSETS:
|
||||||||||
|
From operations –
|
||||||||||
|
Net investment income
|
$
|
584,258
|
$
|
697,013
|
||||||
|
Net realized gain on investment and foreign currency transactions
|
2,284,724
|
1,142,339
|
||||||||
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations
|
(685,741
|
)
|
(507,476
|
)
|
||||||
|
Net increase in net assets from operations
|
$
|
2,183,241
|
$
|
1,331,876
|
||||||
|
Distributions to shareholders (Note 2)
|
||||||||||
|
From net investment income
|
$
|
(107,284
|
)
|
$
|
(1,672,543
|
)
|
||||
|
Total distributions
|
$
|
(107,284
|
)
|
$
|
(1,672,543
|
)
|
||||
|
Net decrease in net assets resulting from fund share transactions (Note 6)
|
$
|
(7,563,379
|
)
|
$
|
(18,504,338
|
)
|
||||
|
Net decrease in net assets
|
$
|
(5,487,422
|
)
|
$
|
(18,845,005
|
)
|
||||
|
|
||||||||||
|
NET ASSETS:
|
||||||||||
|
At begining of period
|
49,993,925
|
68,838,930
|
||||||||
|
At end of period
|
$
|
44,506,503
|
$
|
49,993,925
|
||||||
|
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD
|
$
|
478,530
|
$
|
1,556
|
||||||
| See Notes to Financial Statements. | 19 |
|
Wright International Blue Chip Equities Fund (WIBC)
|
|
Six Months Ended
June 30, 2011
|
Years Ended December 31,
|
|||||||||||||||||||
|
FINANCIAL HIGHLIGHTS
|
2010
|
2009
|
2008
|
2007
|
2006
|
|||||||||||||||
|
Net asset value, beginning of period
|
$
|
14.860
|
$
|
14.460
|
(1)
|
$
|
10.810
|
$
|
22.470
|
$
|
22.830
|
$
|
18.060
|
|||||||
|
Income (loss) from investment operations:
|
||||||||||||||||||||
|
Net investment income (2)
|
0.190
|
0.170
|
0.208
|
0.483
|
0.434
|
0.255
|
||||||||||||||
|
Net realized and unrealized gain (loss)
|
0.495
|
0.640
|
3.442
|
(1)
|
(11.002
|
)
|
0.755
|
4.859
|
||||||||||||
|
Total income (loss) from investment
|
0.685
|
0.810
|
3.650
|
(1)
|
(10.519
|
)
|
1.189
|
5.114
|
||||||||||||
|
operations
|
||||||||||||||||||||
|
Less distributions:
|
||||||||||||||||||||
|
From net investment income
|
(0.035
|
)
|
(0.410
|
)
|
—
|
(0.575
|
)
|
(0.491
|
)
|
(0.320
|
)
|
|||||||||
|
From net realized gains
|
—
|
—
|
—
|
(0.558
|
)
|
(1.058
|
)
|
(0.024
|
)
|
|||||||||||
|
Tax return of capital
|
—
|
—
|
—
|
(0.008
|
)
|
—
|
—
|
|||||||||||||
|
Total distributions
|
(0.035
|
)
|
(0.410
|
)
|
—
|
(1.141
|
)
|
(1.549
|
)
|
(0.344
|
)
|
|||||||||
|
Redemption Fees(2)
|
—
|
(3)
|
—
|
(3)
|
—
|
—
|
—
|
—
|
||||||||||||
|
#
|
||||||||||||||||||||
|
Net asset value, end of period
|
$
|
15.510
|
$
|
14.860
|
$
|
14.460
|
(1)
|
$
|
10.810
|
$
|
22.470
|
$
|
22.830
|
|||||||
|
Total Return(4)
|
4.62
|
%(5)
|
5.76
|
%
|
33.77
|
%
|
(47.74
|
)%
|
5.50
|
%
|
28.49
|
%
|
||||||||
|
Ratios/Supplemental Data(7):
|
||||||||||||||||||||
|
Net assets, end of period (000 omitted)
|
$44,507
|
$49,994
|
$68,839
|
$67,146
|
$183,608
|
$218,201
|
||||||||||||||
|
Ratios (As a percentage of
average daily net assets):
|
||||||||||||||||||||
|
Net expenses
|
1.78
|
%(6)
|
1.74
|
%
|
1.63
|
%
|
1.54
|
%
|
1.49
|
%
|
1.46
|
%
|
||||||||
|
Net expenses after custodian fee
|
N/A
|
N/A
|
1.63
|
%
|
1.53
|
%
|
1.47
|
%
|
1.37
|
%
|
||||||||||
|
reduction
|
||||||||||||||||||||
|
Net investment income
|
2.50
|
%(6)
|
1.23
|
%
|
1.75
|
%
|
2.71
|
%
|
1.82
|
%
|
1.26
|
%
|
||||||||
|
Portfolio turnover rate
|
28
|
%(5)
|
92
|
%
|
63
|
%
|
82
|
%
|
138
|
%
|
116
|
%
|
||||||||
|
|
||||||||||||||||||||
|
(1)
|
Previously reported amount has been changed by 0.001 to reflect rounding consistencies.
|
|||||||||||||||||||
|
(2)
|
Computed using average shares outstanding.
|
|||||||||||||||||||
|
(3)
|
Less than $0.001 per share.
|
|||||||||||||||||||
|
(4)
|
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.
|
|||||||||||||||||||
|
(5)
|
Not annualized.
|
|||||||||||||||||||
|
(6)
|
Annualized.
|
|||||||||||||||||||
|
(7)
|
For the year ended December 31, 2010, 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:
|
|||||||||||||||||||
|
|
2010
|
|||||||||||||||||||
|
Ratios (As a percentage of
average daily net assets):
|
||||||||||||||||||||
|
Gross expenses
|
1.76
|
%
|
||||||||||||||||||
|
Net investment income
|
2.50
|
%
|
||||||||||||||||||
|
|
||||||||||||||||||||
| See Notes to Financial Statements. | 20 |
|
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 for dividends received in cash and/or securities. 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
| 21 |
|
Wright Managed Equity Trust
Notes to Financial Statements
|
understanding of the tax rules and rates that exist in the foreign markets in which it invests. At December 31, 2010, WSBC, WMBC and WIBC, for federal income tax purposes, had capital loss carryforwards of $961,631, 8,043,743 and $53,303,391, 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 carryovers will expire as follows:
|
December 31,
|
WSBC
|
WMBC
|
WIBC
|
|
2011
|
$ -
|
$ 2,230,768
|
$ -
|
|
2016
|
-
|
875,589
|
18,605,975
|
|
2017
|
961,631
|
4,937,386
|
34,697,416
|
As of June 30, 2011, 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, 2010, 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. 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. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments and foreign currency transactions. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
G. 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.
H. 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.
I. Interim Financial Statements – The interim financial statements relating to June 30, 2011, 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
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
| 22 |
|
Wright Managed Equity Trust
Notes to Financial Statements
|
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, 2010, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
|
WSBC
|
WMBC
|
WIBC
|
||||||||||
|
Undistributed ordinary income
|
$
|
-
|
$
|
-
|
$
|
107,024
|
||||||
|
Capital loss carryforward and post October losses
|
(961,631
|
)
|
(8,043,743
|
)
|
(53,303,391
|
)
|
||||||
|
Net unrealized appreciation
|
5,008,705
|
1,722,394
|
7,541,934
|
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 six months ended June 30, 2011, 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
|
$92,889
|
0.60%
|
|
WMBC
|
$62,890
|
0.60%
|
|
WIBC
|
$187,202
|
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 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 six months ended June 30, 2011, the administrator fee for WSBC, WMBC and WIBC amounted to $18,578, $12,578 and $39,780, 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
| 23 |
|
Wright Managed Equity Trust
Notes to Financial Statements
|
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 six months ended June 30, 2011, for WSBC, WMBC and WIBC were $38,704, $26,204 and $58,501, 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 six months ended June 30, 2011, 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, 2012 (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 of $1,434 for WMBC. WISDI waived distribution fees of $16,385 and $26,204 for WSBC and WMBC, respectively.
5. Investment Transactions
Purchases and sales of investments, other than short-term obligations, were as follows:
|
Six Months Ended June 30, 2011
|
|||
|
WSBC
|
WMBC
|
WIBC
|
|
|
Purchases
|
$13,400,797
|
$24,242,634
|
$13,369,385
|
|
Sales
|
$12,151,483
|
$27,375,623
|
$20,121,863
|
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:
| 24 |
|
Wright Managed Equity Trust
Notes to Financial Statements
|
|
Six Months Ended
June 30, 2011
|
Year Ended
December 31, 2010
|
|||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||
|
WSBC
|
||||||||||||
|
Sold
|
393,411
|
$
|
4,353,166
|
1,241,263
|
$
|
12,152,747
|
||||||
|
Issued to shareholders in payment of distributions declared
|
-
|
-
|
1,655
|
14,572
|
||||||||
|
Redemptions
|
(251,851
|
)
|
(2,796,045
|
)
|
(510,109
|
)
|
(4,640,440
|
)
|
||||
|
Net increase
|
141,560
|
$
|
1,557,121
|
732,809
|
$
|
7,526,879
|
||||||
|
WMBC
|
|||||||||||
|
Sold
|
63,559
|
$
|
818,189
|
203,955
|
$
|
2,262,037
|
|||||
|
Issued to shareholders in payment of distributions declared
|
-
|
-
|
6,975
|
84,020
|
|||||||
|
Redemptions
|
(298,175
|
)
|
(3,825,667
|
)
|
(956,638
|
)
|
(10,533,368
|
)
|
|||
|
Net decrease
|
(234,616
|
)
|
$
|
(3,007,478
|
)
|
(745,708
|
)
|
$
|
(8,187,311
|
)
|
|
|
WIBC
|
|||||||||||
|
Sold
|
151,424
|
$
|
2,308,181
|
444,936
|
$
|
6,282,185
|
|||||
|
Issued to shareholders in payment of distributions declared
|
6,183
|
91,392
|
89,482
|
1,264,509
|
|||||||
|
Redemptions
|
(652,409
|
)
|
(9,962,981
|
)
|
(1,930,614
|
)
|
(26,052,262
|
)
|
|||
|
Redemption fees
|
-
|
29
|
-
|
1,230
|
|||||||
|
Net decrease
|
(494,802
|
)
|
$
|
(7,563,379
|
)
|
(1,396,196
|
)
|
$
|
(18,504,338
|
)
|
|
7. Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of the investment securities owned at June 30, 2011, as computed on a federal income tax basis, were as follows:
|
Six Months Ended June 30, 2011
|
|||||||||
|
WSBC
|
WMBC
|
WIBC
|
|||||||
|
Aggregate cost
|
$
|
26,815,776
|
$
|
19,568,051
|
$
|
36,258,086
|
|||
|
Gross unrealized appreciation
|
$
|
5,877,528
|
$
|
1,494,514
|
$
|
9,104,901
|
|||
|
Gross unrealized depreciation
|
|
(371,089
|
)
|
|
(898,402
|
)
|
|
(980,143
|
)
|
|
Net unrealized appreciation
|
$
|
5,506,439
|
$
|
596,112
|
$
|
8,124,758
|
|||
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, 2011, WIBC had a balance outstanding pursuant to this line of credit of $78,097 at an interest rate of 1.19%.
The average borrowings and average interest rate (based on days with outstanding balances) for the six months ended June 30, 2011, were as follows:
| 25 |
|
Wright Managed Equity Trust
Notes to Financial Statements
|
|
WSBC
|
WMBC
|
WIBC
|
|
|
Average borrowings
|
$181,417
|
$270,576
|
$401,213
|
|
Average interest rate
|
1.26%
|
1.24%
|
1.23%
|
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. Securities Lending Agreement
WIBC has established a securities lending arrangement with Union Bank as securities lending agent in which WIBC lends portfolio securities to a broker in exchange for collateral consisting of cash in an amount at least equal to the market value of the securities on loan. Cash collateral may be invested in government securities. WIBC earns interest on the amount invested in the portfolio, but it must pay to or receive from a broker a rebate fee, depending on the securities loaned, computed as a varying percentage of the collateral received. The broker fee and interest income earned is offset by the broker rebate fees paid of $44,321 for the six months ended June 30, 2011. In the event of counterparty default, WIBC is subject to potential loss if it is delayed or prevented from exercising its right to dispose of the collateral. WIBC bears risk in the event that invested collateral is not sufficient to meet obligations due on loans. WIBC has the right under the securities lending agreement to recover the securities from the borrower on demand. As of June 30, 2011, WIBC had no securities on loan.
11. 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, 2011, the inputs used in valuing each Fund’s investments, which are carried at value, were as follows:
| 26 |
|
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
|
$
|
31,995,508
|
$
|
-
|
$
|
-
|
$
|
31,995,508
|
|
Short-Term Investments
|
|
-
|
|
326,707
|
-
|
326,707
|
||
|
Total Investments
|
$
|
31,995,508
|
$
|
326,707
|
$
|
-
|
$
|
32,322,215
|
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
|
$
|
19,950,193
|
$
|
-
|
$
|
-
|
$
|
19,950,193
|
|
Short-Term Investments
|
-
|
213,970
|
-
|
213,970
|
||||
|
Total Investments
|
$
|
19,950,193
|
$
|
213,970
|
$
|
-
|
$
|
20,164,163
|
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
|
$
|
44,382,844
|
$
|
-
|
$
|
-
|
$
|
44,382,844
|
|
Total Investments
|
$
|
44,382,844
|
$
|
-
|
$
|
-
|
$
|
44,382,844
|
The Level 1 inputs 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 type.
12. New Accounting Pronouncement
In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about Fair Value Measurements.” ASU No. 2010-06 clarifies existing disclosure and requires additional disclosures regarding fair value measurements. Effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years, entities will need to disclose information about purchases, sales, issuances and settlements of Level 3 securities on a gross basis, rather than as a net number as currently required. Management has evaluated ASU No. 2010-06 and has determined that it did not have a significant impact on the reporting of the financial statement disclosures.
In May 2011, FASB issued ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” ASU No. 2011-04 establishes common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. GAAP and International Financial Reporting Standards (“IFRSs”). ASU No. 2011-04 is effective for interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact ASU No. 2011-04 may have on financial statement disclosures.
13. Review for Subsequent Events
In connection with the preparation of the financial statements of the Funds as of and for the six months ended June 30, 2011, events and transactions subsequent to June 30, 2011, 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.
| 27 |
|
Wright Total Return Bond Fund (WTRB)
Portfolio of Investments - As of June 30, 2011
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|
FIXED INCOME INVESTMENTS - 98.9%
|
|
ASSET-BACKED SECURITIES - 2.3%
|
|
$
|
310,000
|
Citibank Credit Card Issuance Trust, Series 2009-A1, Class A1
|
1.937
|
%
|
(1)
|
03/17/14
|
$
|
313,701
|
|||||
|
170,000
|
Harley-Davidson Motorcycle Trust, Series 2009-1, Class A4
|
4.550
|
%
|
01/15/17
|
|
175,729
|
|||||||
|
195,000
|
PSE&G Transition Funding LLC, Series 2001-1, Class A7
|
6.750
|
%
|
06/15/16
|
|
222,637
|
|
Total Asset-Backed Securities (identified cost, $688,255)
|
$
|
712,067
|
|
COMMERCIAL MORTGAGE-BACKED SECURITIES - 8.8%
|
|
$
|
275,000
|
Citigroup Commercial Mortgage Trust, Series 2004-C2, Class A5
|
4.733
|
%
|
10/15/41
|
$
|
292,792
|
||||||
|
330,000
|
Credit Suisse First Boston Mortgage Securities Corp., Series 2003-C3, Class A5
|
3.936
|
%
|
05/15/38
|
|
342,043
|
|||||||
|
525,561
|
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C1 Class A3
|
4.813
|
%
|
02/15/38
|
|
540,521
|
|||||||
|
435,000
|
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2004-C3, Class A5
|
4.878
|
%
|
01/15/42
|
|
463,900
|
|||||||
|
300,000
|
LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A4
|
5.372
|
%
|
09/15/39
|
|
326,695
|
|||||||
|
315,000
|
Merrill Lynch Mortgage Trust, Series 2005-LC1, Class A4
|
5.291
|
%
|
(1)
|
01/12/44
|
|
341,660
|
||||||
|
310,000
|
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-2, Class A4
|
6.097
|
%
|
(1)
|
06/12/46
|
|
342,676
|
||||||
|
64,195
|
Salomon Brothers Mortgage Securities VII, Inc., Series 2002-KEY2, Class A2
|
4.467
|
%
|
03/18/36
|
|
65,060
|
|
Total Commercial Mortgage-Backed Securities (identified cost, $2,560,863)
|
$
|
2,715,347
|
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES - 0.2%
|
|
$
|
57,494
|
Wells Fargo Mortgage Backed Securities Trust, Series 2004-K, Class 1A2
|
2.802
|
%
|
(1)
|
07/25/34
|
$
|
57,996
|
|
Total Residential Mortgage-Backed Securities (identified cost, $48,232)
|
$
|
57,996
|
|
CONVERTIBLE BONDS - 0.4%
|
|
$
|
130,000
|
NASDAQ OMX Group, Inc. (The)
|
2.500
|
%
|
08/15/13
|
$
|
131,138
|
|
Total Convertible Bonds (identified cost, $126,675)
|
$
|
131,138
|
|
CORPORATE BONDS - 47.1%
|
|
AUTO MANUFACTURERS - 0.4%
|
|||||||||||||
|
$
|
110,000
|
Daimler Finance North America, LLC
|
6.500
|
%
|
11/15/13
|
$
|
122,441
|
||||||
|
BANKS - 4.7%
|
|||||||||||||
|
$
|
135,000
|
Bank of America Corp., MTN
|
5.000
|
%
|
05/13/21
|
$
|
133,616
|
||||||
|
290,000
|
Deutsche Bank AG/London
|
3.875
|
%
|
08/18/14
|
|
305,042
|
|||||||
|
155,000
|
Royal Bank of Scotland PLC (The)
|
3.950
|
%
|
09/21/15
|
|
155,878
|
|||||||
|
55,000
|
SunTrust Banks, Inc.
|
6.000
|
%
|
09/11/17
|
|
61,152
|
|||||||
|
220,000
|
US Bancorp, MTN
|
3.150
|
%
|
03/04/15
|
|
229,942
|
|||||||
|
110,000
|
Wells Fargo & Co.
|
4.375
|
%
|
01/31/13
|
|
115,491
|
|||||||
|
155,000
|
Wells Fargo & Co.
|
3.625
|
%
|
04/15/15
|
|
162,180
|
|||||||
|
280,000
|
Westpac Banking Corp.
|
4.200
|
%
|
02/27/15
|
|
296,543
|
|||||||
|
CAPITAL GOODS - 0.4%
|
|||||||||||||
|
$
|
110,000
|
PACCAR, Inc.
|
6.875
|
%
|
02/15/14
|
$
|
125,666
|
||||||
|
CONSUMER DURABLES & APPAREL - 0.4%
|
|||||||||||||
|
$
|
115,000
|
Hasbro, Inc.
|
6.125
|
%
|
05/15/14
|
$
|
127,096
|
||||||
|
CONSUMER SERVICES - 0.2%
|
|||||||||||||
|
$
|
60,000
|
Brinker International, Inc.
|
5.750
|
%
|
06/01/14
|
$
|
63,795
|
||||||
|
DIVERSIFIED FINANCIALS - 10.5%
|
|||||||||||||
|
$
|
135,000
|
American Express Credit Corp., Series C
|
7.300
|
%
|
08/20/13
|
$
|
150,328
|
||||||
|
55,000
|
Ameriprise Financial, Inc.
|
5.650
|
%
|
11/15/15
|
|
62,130
|
|||||||
|
140,000
|
Bear Stearns Cos., LLC (The)
|
5.700
|
%
|
11/15/14
|
|
154,745
|
|||||||
|
65,000
|
BlackRock, Inc.
|
3.500
|
%
|
12/10/14
|
|
68,557
|
|||||||
|
55,000
|
Capital One Financial Corp.
|
7.375
|
%
|
05/23/14
|
|
62,842
|
|||||||
|
260,000
|
Citigroup, Inc.
|
6.500
|
%
|
08/19/13
|
|
282,907
|
|||||||
|
160,000
|
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands
|
2.125
|
%
|
10/13/15
|
|
158,659
|
|||||||
| See Notes to Financial Statements. | 28 |
|
Wright Total Return Bond Fund (WTRB)
Portfolio of Investments - As of June 30, 2011
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|||||||||
|
$
|
130,000
|
Credit Suisse USA, Inc.
|
0.535
|
%
|
(1)
|
04/12/13
|
$
|
129,721
|
|||||
|
260,000
|
Eaton Vance Corp.
|
6.500
|
%
|
10/02/17
|
|
300,616
|
|||||||
|
135,000
|
Equifax, Inc.
|
4.450
|
%
|
12/01/14
|
|
144,789
|
|||||||
|
225,000
|
General Electric Capital Corp., MTN, Series A
|
6.750
|
%
|
03/15/32
|
|
250,712
|
|||||||
|
100,000
|
Goldman Sachs Group, Inc. (The)
|
0.846
|
%
|
(1)
|
09/29/14
|
|
97,702
|
||||||
|
115,000
|
Goldman Sachs Group, Inc. (The)
|
6.150
|
%
|
04/01/18
|
|
125,333
|
|||||||
|
235,000
|
HSBC Finance Corp.
|
6.375
|
%
|
10/15/11
|
|
238,740
|
|||||||
|
70,000
|
Jefferies Group, Inc.
|
8.500
|
%
|
07/15/19
|
|
82,912
|
|||||||
|
110,000
|
JPMorgan Chase & Co.
|
6.300
|
%
|
04/23/19
|
|
124,179
|
|||||||
|
125,000
|
Merrill Lynch & Co., Inc.
|
6.050
|
%
|
05/16/16
|
|
131,186
|
|||||||
|
150,000
|
Moody's Corp.
|
5.500
|
%
|
09/01/20
|
|
153,970
|
|||||||
|
100,000
|
Morgan Stanley
|
5.300
|
%
|
03/01/13
|
|
105,773
|
|||||||
|
120,000
|
Nomura Holdings, Inc.
|
5.000
|
%
|
03/04/15
|
|
126,628
|
|||||||
|
135,000
|
PNC Funding Corp.
|
4.250
|
%
|
09/21/15
|
|
144,981
|
|||||||
|
130,000
|
TD Ameritrade Holding Corp.
|
4.150
|
%
|
12/01/14
|
|
137,760
|
|||||||
|
ENERGY - 2.1%
|
|||||||||||||
|
$
|
205,000
|
Baker Hughes, Inc.
|
6.875
|
%
|
01/15/29
|
$
|
247,522
|
||||||
|
70,000
|
Cimarex Energy Co.
|
7.125
|
%
|
05/01/17
|
|
73,850
|
|||||||
|
50,000
|
Newfield Exploration Co.
|
6.625
|
%
|
04/15/16
|
|
51,875
|
|||||||
|
50,000
|
ONEOK Partners LP
|
6.850
|
%
|
10/15/37
|
|
55,836
|
|||||||
|
60,000
|
Oneok, Inc.
|
5.200
|
%
|
06/15/15
|
|
65,708
|
|||||||
|
70,000
|
Peabody Energy Corp.
|
7.375
|
%
|
11/01/16
|
|
79,450
|
|||||||
|
55,000
|
Valero Energy Corp.
|
9.375
|
%
|
03/15/19
|
|
70,352
|
|||||||
|
FOOD, BEVERAGE & TOBACCO - 2.3%
|
|||||||||||||
|
$
|
60,000
|
Altria Group, Inc.
|
8.500
|
%
|
11/10/13
|
$
|
69,578
|
||||||
|
55,000
|
Altria Group, Inc.
|
9.700
|
%
|
11/10/18
|
|
72,377
|
|||||||
|
140,000
|
ConAgra Foods, Inc.
|
5.875
|
%
|
04/15/14
|
|
153,862
|
|||||||
|
150,000
|
Corn Products International, Inc.
|
4.625
|
%
|
11/01/20
|
|
151,599
|
|||||||
|
100,000
|
PepsiCo, Inc.
|
7.900
|
%
|
11/01/18
|
|
129,063
|
|||||||
|
105,000
|
Philip Morris International, Inc.
|
6.875
|
%
|
03/17/14
|
|
120,637
|
|||||||
|
HEALTH CARE EQUIPMENT & SERVICES - 2.6%
|
|||||||||||||
|
$
|
115,000
|
Biogen Idec, Inc.
|
6.000
|
%
|
03/01/13
|
$
|
123,081
|
||||||
|
135,000
|
Hospira, Inc.
|
5.900
|
%
|
06/15/14
|
|
150,040
|
|||||||
|
75,000
|
Laboratory Corp. of America Holdings
|
3.125
|
%
|
05/15/16
|
|
76,123
|
|||||||
|
40,000
|
McKesson Corp.
|
6.500
|
%
|
02/15/14
|
|
44,992
|
|||||||
|
100,000
|
Medtronic, Inc.
|
4.500
|
%
|
03/15/14
|
|
108,684
|
|||||||
|
130,000
|
UnitedHealth Group, Inc.
|
6.000
|
%
|
02/15/18
|
|
147,608
|
|||||||
|
145,000
|
WellPoint, Inc.
|
4.350
|
%
|
08/15/20
|
|
146,692
|
|||||||
|
HOUSEHOLD & PERSONAL PRODUCTS - 0.6%
|
|||||||||||||
|
$
|
115,000
|
Avon Products, Inc.
|
5.625
|
%
|
03/01/14
|
$
|
125,981
|
||||||
|
60,000
|
Estee Lauder Cos., Inc. (The)
|
6.000
|
%
|
05/15/37
|
|
65,326
|
|||||||
|
INDUSTRIAL - 0.2%
|
|||||||||||||
|
$
|
70,000
|
Greif, Inc.
|
6.750
|
%
|
02/01/17
|
$
|
73,150
|
||||||
|
INSURANCE - 4.6%
|
|||||||||||||
|
$
|
100,000
|
ACE INA Holdings, Inc.
|
5.875
|
%
|
06/15/14
|
$
|
111,883
|
||||||
|
275,000
|
Loews Corp.
|
5.250
|
%
|
03/15/16
|
|
299,954
|
|||||||
|
125,000
|
MetLife, Inc.
|
5.000
|
%
|
06/15/15
|
|
136,502
|
|||||||
|
46,000
|
OneBeacon US Holdings, Inc.
|
5.875
|
%
|
05/15/13
|
|
48,116
|
|||||||
|
255,000
|
PartnerRe Finance B, LLC
|
5.500
|
%
|
06/01/20
|
|
257,973
|
|||||||
|
55,000
|
Principal Financial Group, Inc.
|
8.875
|
%
|
05/15/19
|
|
70,065
|
|||||||
|
130,000
|
Principal Life Income Funding Trusts, MTN
|
0.448
|
%
|
(1)
|
11/08/13
|
|
128,878
|
||||||
|
90,000
|
Prudential Financial, Inc., MTN
|
4.500
|
%
|
11/15/20
|
|
89,567
|
|||||||
|
50,000
|
Prudential Financial, Inc., MTN, Series D
|
7.375
|
%
|
06/15/19
|
|
59,387
|
|||||||
|
200,000
|
Travelers Cos., Inc. (The)
|
5.500
|
%
|
12/01/15
|
|
224,756
|
|||||||
|
MATERIALS - 1.6%
|
|||||||||||||
|
$
|
145,000
|
Airgas, Inc.
|
4.500
|
%
|
09/15/14
|
$
|
155,374
|
||||||
|
120,000
|
Dow Chemical Co. (The)
|
7.375
|
%
|
03/01/23
|
|
140,470
|
|||||||
|
100,000
|
Lubrizol Corp.
|
8.875
|
%
|
02/01/19
|
|
130,245
|
|||||||
|
55,000
|
Steel Dynamics, Inc.
|
7.375
|
%
|
11/01/12
|
|
58,300
|
|||||||
| See Notes to Financial Statements. | 29 |
|
Wright Total Return Bond Fund (WTRB)
Portfolio of Investments - As of June 30, 2011
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|||||||||
|
MEDIA - 2.3%
|
|||||||||||||
|
$
|
90,000
|
Comcast Cable Communications Holdings, Inc.
|
9.455
|
%
|
11/15/22
|
$
|
125,444
|
||||||
|
150,000
|
DIRECTV Holdings, LLC / DIRECTV Financing Co, Inc.
|
5.000
|
%
|
03/01/21
|
|
155,658
|
|||||||
|
95,000
|
McGraw-Hill Cos., Inc. (The)
|
5.900
|
%
|
11/15/17
|
|
106,217
|
|||||||
|
50,000
|
Time Warner Cable, Inc.
|
8.250
|
%
|
04/01/19
|
|
62,453
|
|||||||
|
115,000
|
Time Warner Cos., Inc.
|
6.950
|
%
|
01/15/28
|
|
129,013
|
|||||||
|
120,000
|
Viacom, Inc.
|
4.375
|
%
|
09/15/14
|
|
128,979
|
|||||||
|
MINING - 0.5%
|
|||||||||||||
|
$
|
80,000
|
Barrick Gold Financeco, LLC
|
6.125
|
%
|
09/15/13
|
$
|
88,514
|
||||||
|
50,000
|
Rio Tinto Finance USA, Ltd.
|
8.950
|
%
|
05/01/14
|
|
60,082
|
|||||||
|
MISCELLANEOUS MANUFACTURING - 0.2%
|
|||||||||||||
|
$
|
55,000
|
Tyco International Finance SA
|
8.500
|
%
|
01/15/19
|
$
|
69,826
|
||||||
|
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES - 0.4%
|
|||||||||||||
|
$
|
115,000
|
Wyeth
|
5.500
|
%
|
02/01/14
|
$
|
127,582
|
||||||
|
PIPELINES - 0.9%
|
|||||||||||||
|
$
|
60,000
|
Spectra Energy Capital, LLC
|
5.650
|
%
|
03/01/20
|
$
|
64,863
|
||||||
|
170,000
|
TransCanada PipeLines, Ltd.
|
6.500
|
%
|
08/15/18
|
|
200,284
|
|||||||
|
RETAILING - 1.5%
|
|||||||||||||
|
$
|
55,000
|
AutoZone, Inc.
|
5.750
|
%
|
01/15/15
|
$
|
61,396
|
||||||
|
135,000
|
Best Buy Co., Inc.
|
6.750
|
%
|
07/15/13
|
|
147,552
|
|||||||
|
72,000
|
Ltd. Brands, Inc.
|
5.250
|
%
|
11/01/14
|
|
75,600
|
|||||||
|
55,000
|
Netflix, Inc.
|
8.500
|
%
|
11/15/17
|
|
62,013
|
|||||||
|
120,000
|
Safeway, Inc.
|
5.000
|
%
|
08/15/19
|
|
125,799
|
|||||||
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.7%
|
|||||||||||||
|
$
|
165,000
|
Applied Materials, Inc.
|
7.125
|
%
|
10/15/17
|
$
|
199,332
|
||||||
|
SOFTWARE & SERVICES - 2.8%
|
|||||||||||||
|
$
|
140,000
|
Adobe Systems, Inc.
|
4.750
|
%
|
02/01/20
|
$
|
144,634
|
||||||
|
140,000
|
Computer Sciences Corp.
|
5.500
|
%
|
03/15/13
|
|
148,782
|
|||||||
|
140,000
|
Dun & Bradstreet Corp.
|
6.000
|
%
|
04/01/13
|
|
150,542
|
|||||||
|
145,000
|
Ingram Micro, Inc.
|
5.250
|
%
|
09/01/17
|
|
152,193
|
|||||||
|
105,000
|
International Business Machines Corp.
|
7.625
|
%
|
10/15/18
|
|
133,737
|
|||||||
|
150,000
|
Symantec Corp.
|
4.200
|
%
|
09/15/20
|
|
144,521
|
|||||||
|
TECHNOLOGY HARDWARE & EQUIPMENT - 0.6%
|
|||||||||||||
|
$
|
30,000
|
Dell, Inc.
|
5.625
|
%
|
04/15/14
|
$
|
33,388
|
||||||
|
140,000
|
Harris Corp.
|
5.000
|
%
|
10/01/15
|
|
153,549
|
|||||||
|
TELECOMMUNICATIONS - 2.3%
|
|||||||||||||
|
$
|
155,000
|
BellSouth Corp.
|
6.000
|
%
|
11/15/34
|
$
|
157,057
|
||||||
|
70,000
|
British Telecommunications PLC
|
9.875
|
%
|
12/15/30
|
|
96,404
|
|||||||
|
105,000
|
Cellco Partnership / Verizon Wireless Capital, LLC
|
5.550
|
%
|
02/01/14
|
|
115,804
|
|||||||
|
145,000
|
Telefonica Emisiones SAU
|
4.949
|
%
|
01/15/15
|
|
154,426
|
|||||||
|
150,000
|
Verizon Global Funding Corp.
|
7.750
|
%
|
12/01/30
|
|
187,979
|
|||||||
|
TRANSPORTATION - 0.4%
|
|||||||||||||
|
$
|
120,000
|
Burlington Northern Santa Fe, LLC
|
6.200
|
%
|
08/15/36
|
$
|
130,817
|
||||||
|
UTILITIES - 3.9%
|
|||||||||||||
|
$
|
115,000
|
American Electric Power Co., Inc.
|
5.250
|
%
|
06/01/15
|
$
|
126,498
|
||||||
|
110,000
|
Consolidated Edison Co. of New York, Inc.
|
7.125
|
%
|
12/01/18
|
|
135,535
|
|||||||
|
90,000
|
Dominion Resources, Inc., Series E
|
6.300
|
%
|
03/15/33
|
|
99,120
|
|||||||
|
115,000
|
Duke Energy Indiana, Inc.
|
5.000
|
%
|
09/15/13
|
|
124,033
|
|||||||
|
80,000
|
Exelon Generation Co., LLC
|
5.200
|
%
|
10/01/19
|
|
83,628
|
|||||||
|
55,000
|
Hawaiian Electric Industries, Inc., MTN, Series D
|
6.141
|
%
|
08/15/11
|
|
55,311
|
|||||||
|
115,000
|
NextEra Energy Capital Holdings, Inc., Series D
|
7.300
|
%
|
(1)
|
09/01/67
|
|
120,611
|
||||||
|
50,000
|
Pacific Gas & Electric Co.
|
8.250
|
%
|
10/15/18
|
|
64,268
|
|||||||
|
138,000
|
PPL Energy Supply, LLC
|
6.300
|
%
|
07/15/13
|
|
150,380
|
|||||||
|
60,000
|
Public Service Electric & Gas Co., MTN
|
5.300
|
%
|
05/01/18
|
|
67,221
|
|||||||
| See Notes to Financial Statements. | 30 |
|
Wright Total Return Bond Fund (WTRB)
Portfolio of Investments - As of June 30, 2011
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|||||||||
|
$
|
100,000
|
Sempra Energy
|
6.000
|
%
|
02/01/13
|
$
|
107,245
|
||||||
|
55,000
|
TransAlta Corp.
|
4.750
|
%
|
01/15/15
|
|
58,782
|
|||||||
|
Total Corporate Bonds (identified cost, $13,780,615)
|
$
|
14,535,940
|
|
U.S. GOVERNMENT INTERESTS - 40.1%
|
|
AGENCY MORTGAGE-BACKED SECURITIES - 27.9%
|
|||||||||||||
|
$
|
178,538
|
FHLMC Gold Pool #A32600
|
5.500
|
%
|
05/01/35
|
$
|
194,232
|
||||||
|
35,131
|
FHLMC Gold Pool #C01646
|
6.000
|
%
|
09/01/33
|
|
38,993
|
|||||||
|
21,638
|
FHLMC Gold Pool #C27663
|
7.000
|
%
|
06/01/29
|
|
25,101
|
|||||||
|
112,312
|
FHLMC Gold Pool #C47318
|
7.000
|
%
|
09/01/29
|
|
132,142
|
|||||||
|
160,543
|
FHLMC Gold Pool #C66878
|
6.500
|
%
|
05/01/32
|
|
181,958
|
|||||||
|
130,051
|
FHLMC Gold Pool #C91046
|
6.500
|
%
|
05/01/27
|
|
146,687
|
|||||||
|
25,539
|
FHLMC Gold Pool #D66753
|
6.000
|
%
|
10/01/23
|
|
27,494
|
|||||||
|
6,181
|
FHLMC Gold Pool #E00903
|
7.000
|
%
|
10/01/15
|
|
6,714
|
|||||||
|
182,526
|
FHLMC Gold Pool #G01035
|
6.000
|
%
|
05/01/29
|
|
202,587
|
|||||||
|
95,917
|
FHLMC Gold Pool #G02478
|
5.500
|
%
|
12/01/36
|
|
104,013
|
|||||||
|
100,858
|
FHLMC Gold Pool #H19018
|
6.500
|
%
|
08/01/37
|
|
113,161
|
|||||||
|
91,736
|
FHLMC Gold Pool #N30514
|
5.500
|
%
|
11/01/28
|
|
98,634
|
|||||||
|
256,779
|
FHLMC Gold Pool #P00024
|
7.000
|
%
|
09/01/32
|
|
291,904
|
|||||||
|
16,466
|
FHLMC Gold Pool #P50031
|
7.000
|
%
|
08/01/18
|
|
17,777
|
|||||||
|
45,677
|
FHLMC Gold Pool #P50064
|
7.000
|
%
|
09/01/30
|
|
51,833
|
|||||||
|
69,809
|
FHLMC Pool #1B1291
|
2.754
|
%
|
(1)
|
11/01/33
|
|
73,215
|
||||||
|
207,409
|
FHLMC Pool #1G0233
|
2.511
|
%
|
(1)
|
05/01/35
|
|
217,903
|
||||||
|
37,833
|
FHLMC Pool #781071
|
5.209
|
%
|
(1)
|
11/01/33
|
|
40,276
|
||||||
|
32,930
|
FHLMC Pool #781804
|
5.065
|
%
|
(1)
|
07/01/34
|
|
35,142
|
||||||
|
15,976
|
FHLMC Pool #781884
|
5.160
|
%
|
(1)
|
08/01/34
|
|
17,047
|
||||||
|
47,989
|
FHLMC Pool #782862
|
5.050
|
%
|
(1)
|
11/01/34
|
|
51,281
|
||||||
|
213,253
|
FHLMC, Series 1983, Class Z
|
6.500
|
%
|
12/15/23
|
|
241,220
|
|||||||
|
155,088
|
FHLMC, Series 2044, Class PE
|
6.500
|
%
|
04/15/28
|
|
177,545
|
|||||||
|
550,000
|
FHLMC, Series 2627, Class MW
|
5.000
|
%
|
06/15/23
|
|
603,397
|
|||||||
|
98,522
|
FNMA Pool #253057
|
8.000
|
%
|
12/01/29
|
|
115,706
|
|||||||
|
10,311
|
FNMA Pool #254845
|
4.000
|
%
|
07/01/13
|
|
10,550
|
|||||||
|
10,710
|
FNMA Pool #254863
|
4.000
|
%
|
08/01/13
|
|
11,182
|
|||||||
|
16,799
|
FNMA Pool #479477
|
6.000
|
%
|
01/01/29
|
|
18,638
|
|||||||
|
13,630
|
FNMA Pool #489357
|
6.500
|
%
|
03/01/29
|
|
15,514
|
|||||||
|
16,367
|
FNMA Pool #535332
|
8.500
|
%
|
04/01/30
|
|
19,348
|
|||||||
|
31,190
|
FNMA Pool #545782
|
7.000
|
%
|
07/01/32
|
|
36,129
|
|||||||
|
20,550
|
FNMA Pool #597396
|
6.500
|
%
|
09/01/31
|
|
23,390
|
|||||||
|
87,258
|
FNMA Pool #621284
|
6.500
|
%
|
12/01/31
|
|
99,316
|
|||||||
|
39,744
|
FNMA Pool #725866
|
4.500
|
%
|
09/01/34
|
|
41,470
|
|||||||
|
100,860
|
FNMA Pool #738630
|
5.500
|
%
|
11/01/33
|
|
109,846
|
|||||||
|
275,775
|
FNMA Pool #745001
|
6.500
|
%
|
09/01/35
|
|
313,367
|
|||||||
|
175,991
|
FNMA Pool #745467
|
5.613
|
%
|
(1)
|
04/01/36
|
|
188,345
|
||||||
|
321,582
|
FNMA Pool #745755
|
5.000
|
%
|
12/01/35
|
|
343,592
|
|||||||
|
137,294
|
FNMA Pool #747529
|
4.500
|
%
|
10/01/33
|
|
143,407
|
|||||||
|
492,535
|
FNMA Pool #781893
|
4.500
|
%
|
11/01/31
|
|
515,263
|
|||||||
|
47,395
|
FNMA Pool #809888
|
4.500
|
%
|
03/01/35
|
|
49,393
|
|||||||
|
696,163
|
FNMA Pool #888366
|
7.000
|
%
|
04/01/37
|
|
801,885
|
|||||||
|
308,844
|
FNMA Pool #888417
|
6.500
|
%
|
01/01/36
|
|
351,523
|
|||||||
|
55,837
|
FNMA Pool #906455
|
5.985
|
%
|
(1)
|
01/01/37
|
|
60,592
|
||||||
|
82,059
|
GNMA I Pool #374892
|
7.000
|
%
|
02/15/24
|
|
95,441
|
|||||||
|
28,858
|
GNMA I Pool #376400
|
6.500
|
%
|
02/15/24
|
|
33,019
|
|||||||
|
38,162
|
GNMA I Pool #379982
|
7.000
|
%
|
02/15/24
|
|
44,385
|
|||||||
|
144,055
|
GNMA I Pool #393347
|
7.500
|
%
|
02/15/27
|
|
168,888
|
|||||||
|
55,615
|
GNMA I Pool #410081
|
8.000
|
%
|
08/15/25
|
|
65,767
|
|||||||
|
33,306
|
GNMA I Pool #427199
|
7.000
|
%
|
12/15/27
|
|
38,794
|
|||||||
| See Notes to Financial Statements. | 31 |
|
Wright Total Return Bond Fund (WTRB)
Portfolio of Investments - As of June 30, 2011
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|||||||||
|
$
|
2,367
|
GNMA I Pool #436214
|
6.500
|
%
|
02/15/13
|
$
|
2,604
|
||||||
|
36,839
|
GNMA I Pool #448490
|
7.500
|
%
|
03/15/27
|
|
43,181
|
|||||||
|
46,385
|
GNMA I Pool #458762
|
6.500
|
%
|
01/15/28
|
|
52,930
|
|||||||
|
37,088
|
GNMA I Pool #460726
|
6.500
|
%
|
12/15/27
|
|
42,345
|
|||||||
|
14,987
|
GNMA I Pool #488924
|
6.500
|
%
|
11/15/28
|
|
17,102
|
|||||||
|
12,467
|
GNMA I Pool #510706
|
8.000
|
%
|
11/15/29
|
|
14,818
|
|||||||
|
38,950
|
GNMA I Pool #581536
|
5.500
|
%
|
06/15/33
|
|
43,131
|
|||||||
|
98,070
|
GNMA II Pool #002630
|
6.500
|
%
|
08/20/28
|
|
111,146
|
|||||||
|
4,761
|
GNMA II Pool #002909
|
8.000
|
%
|
04/20/30
|
|
5,642
|
|||||||
|
12,147
|
GNMA II Pool #002972
|
7.500
|
%
|
09/20/30
|
|
14,235
|
|||||||
|
4,426
|
GNMA II Pool #002973
|
8.000
|
%
|
09/20/30
|
|
5,247
|
|||||||
|
43,547
|
GNMA II Pool #003095
|
6.500
|
%
|
06/20/31
|
|
49,340
|
|||||||
|
311,963
|
GNMA II Pool #004841
|
8.000
|
%
|
08/20/31
|
|
368,462
|
|||||||
|
969,203
|
GNMA, Series 2010-44, Class NK
|
4.000
|
%
|
10/20/37
|
|
1,030,616
|
|||||||
|
U.S. TREASURIES - 12.2%
|
|||||||||||||
|
$
|
505,000
|
U.S. Treasury Bond
|
6.125
|
%
|
11/15/27
|
$
|
638,588
|
||||||
|
120,000
|
U.S. Treasury Note
|
1.375
|
%
|
04/15/12
|
|
121,144
|
|||||||
|
210,000
|
U.S. Treasury Note
|
3.875
|
%
|
02/15/13
|
|
221,870
|
|||||||
|
40,000
|
U.S. Treasury Note
|
1.750
|
%
|
01/31/14
|
|
41,115
|
|||||||
|
110,000
|
U.S. Treasury Note
|
1.875
|
%
|
04/30/14
|
|
113,455
|
|||||||
|
60,000
|
U.S. Treasury Note
|
3.250
|
%
|
06/30/16
|
|
64,383
|
|||||||
|
20,000
|
U.S. Treasury Note
|
2.750
|
%
|
11/30/16
|
|
20,855
|
|||||||
|
1,270,000
|
U.S. Treasury Note
|
3.750
|
%
|
11/15/18
|
|
1,375,966
|
|||||||
|
55,000
|
U.S. Treasury Note
|
3.125
|
%
|
05/15/19
|
|
56,796
|
|||||||
|
615,000
|
U.S. Treasury Strip
|
3.161
|
%
|
(2)
|
08/15/20
|
|
459,128
|
||||||
|
635,000
|
U.S. Treasury Strip
|
4.305-4.845
|
%
|
(2)
|
11/15/30
|
|
264,214
|
||||||
|
1,460,000
|
U.S. Treasury Strip
|
4.696-5.045
|
%
|
(2)
|
08/15/39
|
|
392,200
|
||||||
|
Total U.S. Government Interests (identified cost, $11,862,567)
|
$
|
12,375,519
|
|
TOTAL FIXED INCOME INVESTMENTS (identified cost, $29,067,207) — 98.9%
|
$
|
30,528,007
|
|
TOTAL INVESTMENTS (identified cost, $29,067,207) — 98.9%
|
$
|
30,528,007
|
|
OTHER ASSETS, IN EXCESS OF LIABILITIES — 1.1%
|
329,213
|
|
NET ASSETS — 100.0%
|
$
|
30,857,220
|
FHLMC — Federal Home Loan Mortgage Corporation
FNMA — Federal National Mortgage Association
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, 2011.
|
|
(2)
|
Rate presented is yield to maturity.
|
|
Portfolio Composition by Security Type
|
|
|
% of total investments at June 30, 2011
|
|
|
Asset-Backed Securities
|
2.3%
|
|
Commercial Mortgage-Backed Securities
|
8.9%
|
|
Residential Mortgage-Backed Securities
|
0.2%
|
|
Convertible Bonds
|
0.4%
|
|
Corporate Bonds
|
47.6%
|
|
U.S. Government Interests
|
40.6%
|
| See Notes to Financial Statements. | 32 |
|
Wright Total Return Bond Fund (WTRB)
|
|
As of June 30, 2011
|
For the Six Months Ended June 30, 2011
|
||||||||||||||
|
ASSETS:
|
|
INVESTMENT INCOME (Note 1C)
|
|||||||||||||
|
Investments, at value
|
0
|
Dividend income
|
$
|
22
|
|||||||||||
|
(identified cost $29,067,207) (Note 1A)
|
$
|
30,528,007
|
######
|
Interest income (net of foreign taxes, $528)
|
663,176
|
||||||||||
|
Receivable for fund shares sold
|
21,633
|
Total investment income
|
$
|
663,198
|
|||||||||||
|
Investment securities sold
|
677,420
|
||||||||||||||
|
Dividends and interest receivable
|
259,235
|
Expenses –
|
|||||||||||||
|
Prepaid expenses and other assets
|
28,201
|
Investment adviser fee (Note 3)
|
$
|
68,487
|
|||||||||||
|
Total assets
|
$
|
31,514,496
|
Administrator fee (Note 3)
|
10,653
|
|||||||||||
|
Trustee expense (Note 3)
|
10,432
|
||||||||||||||
|
LIABILITIES:
|
Custodian fee
|
1,514
|
|||||||||||||
|
Outstanding line of credit (Note 8)
|
$
|
84,778
|
Accountant fees
|
19,058
|
|||||||||||
|
Payable for fund shares reacquired
|
53,083
|
Distribution expenses (Note 4)
|
38,048
|
||||||||||||
|
Investment securities purchased
|
462,154
|
Transfer agent fees
|
15,393
|
||||||||||||
|
Distributions payable
|
38,522
|
Printing
|
69
|
||||||||||||
|
Accrued expenses and other liabilities
|
18,739
|
Shareholder communications
|
2,914
|
||||||||||||
|
Total liabilities
|
$
|
657,276
|
Audit services
|
11,292
|
|||||||||||
|
NET ASSETS
|
$
|
30,857,220
|
Legal services
|
3,961
|
|||||||||||
|
Registration costs
|
9,124
|
||||||||||||||
|
NET ASSETS CONSIST OF:
|
Interest expense (Note 8)
|
31
|
|||||||||||||
|
Paid-in capital
|
$
|
31,520,375
|
Miscellaneous
|
19,821
|
|||||||||||
|
Accumulated net realized loss on investments
|
(2,017,980
|
)
|
Total expenses
|
$
|
210,797
|
||||||||||
|
Distributions in excess of net investment income
|
(105,975
|
)
|
|||||||||||||
|
Unrealized appreciation on investments
|
1,460,800
|
Deduct –
|
|||||||||||||
|
Net assets applicable to outstanding shares
|
$
|
30,857,220
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
$
|
(66,172
|
)
|
|||||||||
|
Net expenses
|
$
|
144,625
|
|||||||||||||
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
2,377,907
|
Net investment income
|
$
|
518,573
|
|||||||||||
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
$
|
12.98
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
|
||||||||||||
|
Net realized loss on investment transactions
|
$
|
(1,396
|
)
|
||||||||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
314,365
|
||||||||||||||
|
Net realized and unrealized gain on investments
|
$
|
312,969
|
|||||||||||||
|
Net increase in net assets from operations
|
$
|
831,542
|
|
||||||||||||
| See Notes to Financial Statements. | 33 |
|
Wright Total Return Bond Fund (WTRB)
|
|
Six Months Ended
|
Year Ended
|
|||||||||
|
STATEMENTS OF CHANGES IN NET ASSETS
|
June 30, 2011
|
December 31, 2010
|
||||||||
|
INCREASE (DECREASE) IN NET ASSETS:
|
||||||||||
|
From operations –
|
||||||||||
|
Net investment income
|
$
|
518,573
|
$
|
968,730
|
||||||
|
0
|
Net realized gain (loss) on investment transactions
|
(1,396
|
)
|
254,200
|
||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
314,365
|
369,046
|
||||||||
|
Net increase in net assets from operations
|
$
|
831,542
|
$
|
1,591,976
|
||||||
|
Distributions to shareholders (Note 2)
|
||||||||||
|
From net investment income
|
$
|
(624,548
|
)
|
$
|
(1,108,572
|
)
|
||||
|
Total distributions
|
$
|
(624,548
|
)
|
$
|
(1,108,572
|
)
|
||||
|
Net increase (decrease) in net assets resulting from fund share transactions (Note 6)
|
$
|
(879,969
|
)
|
$
|
6,490,580
|
|||||
|
Net increase (decrease) in net assets
|
$
|
(672,975
|
)
|
$
|
6,973,984
|
|||||
|
|
||||||||||
|
NET ASSETS:
|
||||||||||
|
At begining of period
|
31,530,195
|
24,556,211
|
||||||||
|
At end of period
|
$
|
30,857,220
|
$
|
31,530,195
|
||||||
|
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT LOSS INCLUDED IN NET ASSETS AT END OF PERIOD
|
$
|
(105,975
|
)
|
$
|
-
|
|||||
| See Notes to Financial Statements. | 34 |
|
Wright Total Return Bond Fund (WTRB)
|
|
Six Months Ended
June 30, 2011
|
Years Ended December 31,
|
|||||||||||||||||||
|
FINANCIAL HIGHLIGHTS
|
2010
|
2009
|
2008
|
2007
|
2006
|
|||||||||||||||
|
Net asset value, beginning of period
|
$
|
12.890
|
$
|
12.620
|
(1)
|
$
|
11.990
|
$
|
12.390
|
$
|
12.290
|
$
|
12.430
|
|||||||
|
Income (loss) from investment operations:
|
||||||||||||||||||||
|
Net investment income (2)
|
0.218
|
0.437
|
0.558
|
0.573
|
0.558
|
0.483
|
||||||||||||||
|
Net realized and unrealized gain (loss)
|
0.135
|
0.336
|
0.676
|
(1)
|
(0.373
|
)
|
0.115
|
(0.082
|
)
|
|||||||||||
|
Total income from investment operations
|
0.353
|
0.773
|
1.234
|
(1)
|
0.200
|
0.673
|
0.401
|
|||||||||||||
|
Less distributions:
|
||||||||||||||||||||
|
From net investment income
|
(0.263
|
)
|
(0.503
|
)
|
(0.604
|
)
|
(0.600
|
)
|
(0.573
|
)
|
(0.541
|
)
|
||||||||
|
Net asset value, end of period
|
$
|
12.980
|
$
|
12.890
|
$
|
12.620
|
(1)
|
$
|
11.990
|
$
|
12.390
|
$
|
12.290
|
|||||||
|
Total Return(3)
|
2.76
|
%(4)
|
6.14
|
%
|
10.53
|
%
|
1.69
|
%
|
5.64
|
%
|
3.34
|
%
|
||||||||
|
Ratios/Supplemental Data(6):
|
||||||||||||||||||||
|
Net assets, end of period (000 omitted)
|
$30,857
|
$31,530
|
$24,556
|
$23,262
|
$24,989
|
$30,866
|
||||||||||||||
|
Ratios (As a percentage of
average daily net assets):
|
||||||||||||||||||||
|
Net expenses
|
0.95
|
%(5)
|
0.83
|
%
|
0.70
|
%
|
0.71
|
%
|
0.87
|
%
|
0.99
|
%
|
||||||||
|
Net expenses after custodian fee reduction
|
N/A
|
N/A
|
0.70
|
%
|
0.70
|
%
|
0.85
|
%
|
0.95
|
%
|
||||||||||
|
Net investment income
|
3.41
|
%(5)
|
3.38
|
%
|
4.53
|
%
|
4.73
|
%
|
4.56
|
%
|
3.96
|
%
|
||||||||
|
Portfolio turnover rate
|
34
|
%(4)
|
119
|
%
|
61
|
%
|
125
|
%
|
119
|
%
|
90
|
%
|
||||||||
|
|
|
|||||||||||||||||||
|
(1)
|
Previously reported amount has been changed by 0.004 to reflect rounding consistencies.
|
|||||||||||||||||||
|
(2)
|
Computed using average shares outstanding.
|
|||||||||||||||||||
|
(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 the six months ended June 30, 2011, and for the years ended December 31, 2010, 2009, 2008, 2007 and 2006, 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:
|
|||||||||||||||||||
|
|
2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
||||||||||||||
|
Ratios (As a percentage of average daily net assets):
|
||||||||||||||||||||
|
Gross expenses
|
1.39
|
%(5)
|
1.43
|
%
|
1.55
|
%
|
1.52
|
%
|
1.41
|
%
|
1.23
|
%
|
||||||||
|
Gross expenses after custodian fee
|
N/A
|
N/A
|
1.55
|
%
|
1.51
|
%
|
1.38
|
%
|
1.19
|
%
|
||||||||||
|
reduction
|
||||||||||||||||||||
|
Net investment income
|
2.97
|
%(5)
|
2.78
|
%
|
3.68
|
%
|
3.93
|
%
|
4.03
|
%
|
3.72
|
%
|
||||||||
| See Notes to Financial Statements. | 35 |
|
Wright Current Income Fund (WCIF)
Portfolio of Investments - As of June 30, 2011
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|
FIXED INCOME INVESTMENTS - 97.5%
|
|
AGENCY MORTGAGE-BACKED SECURITIES - 97.5%
|
|||||||||||||
|
$
|
23,532
|
FHLMC Gold Pool #C00548
|
7.000
|
%
|
08/01/27
|
$
|
27,245
|
||||||
|
69,610
|
FHLMC Gold Pool #C00778
|
7.000
|
%
|
06/01/29
|
|
80,752
|
|||||||
|
316,486
|
FHLMC Gold Pool #C91034
|
6.000
|
%
|
06/01/27
|
|
347,957
|
|||||||
|
51,415
|
FHLMC Gold Pool #D81642
|
7.500
|
%
|
08/01/27
|
|
59,983
|
|||||||
|
93,699
|
FHLMC Gold Pool #D82572
|
7.000
|
%
|
09/01/27
|
|
108,485
|
|||||||
|
30,480
|
FHLMC Gold Pool #E00678
|
6.500
|
%
|
06/01/14
|
|
32,234
|
|||||||
|
32,052
|
FHLMC Gold Pool #E00721
|
6.500
|
%
|
07/01/14
|
|
33,896
|
|||||||
|
41,858
|
FHLMC Gold Pool #E81704
|
8.500
|
%
|
05/01/15
|
|
46,475
|
|||||||
|
257,296
|
FHLMC Gold Pool #G02809
|
6.500
|
%
|
05/01/36
|
|
290,947
|
|||||||
|
293,113
|
FHLMC Gold Pool #H09054
|
4.500
|
%
|
03/01/37
|
|
300,025
|
|||||||
|
172,311
|
FHLMC Gold Pool #H09098
|
6.500
|
%
|
10/01/37
|
|
192,954
|
|||||||
|
256,779
|
FHLMC Gold Pool #P00024
|
7.000
|
%
|
09/01/32
|
|
291,904
|
|||||||
|
256,949
|
FHLMC Gold Pool #P50019
|
7.000
|
%
|
07/01/24
|
|
290,272
|
|||||||
|
114,531
|
FHLMC, Series 2176, Class OJ
|
7.000
|
%
|
08/15/29
|
|
134,251
|
|||||||
|
72,854
|
FHLMC, Series 2201, Class C
|
8.000
|
%
|
11/15/29
|
|
83,986
|
|||||||
|
409,977
|
FHLMC, Series 2218, Class ZB
|
6.000
|
%
|
03/15/30
|
|
458,284
|
|||||||
|
155,295
|
FHLMC, Series 2259, Class ZM
|
7.000
|
%
|
10/15/30
|
|
178,306
|
|||||||
|
135,000
|
FHLMC, Series 3217, Class PD
|
6.000
|
%
|
11/15/34
|
|
147,578
|
|||||||
|
209,962
|
FHLMC-GNMA, Series 15, Class L
|
7.000
|
%
|
07/25/23
|
|
221,243
|
|||||||
|
74,703
|
FHLMC-GNMA, Series 23, Class KZ
|
6.500
|
%
|
11/25/23
|
|
84,504
|
|||||||
|
133,013
|
FHLMC-GNMA, Series 4, Class D
|
8.000
|
%
|
12/25/22
|
|
151,911
|
|||||||
|
534,818
|
FNMA Pool #252034
|
7.000
|
%
|
09/01/28
|
|
624,159
|
|||||||
|
42,268
|
FNMA Pool #535131
|
6.000
|
%
|
03/01/29
|
|
46,894
|
|||||||
|
328,859
|
FNMA Pool #555417
|
6.000
|
%
|
05/01/33
|
|
364,850
|
|||||||
|
170,886
|
FNMA Pool #594207
|
6.500
|
%
|
02/01/31
|
|
195,142
|
|||||||
|
327,737
|
FNMA Pool #655219
|
3.500
|
%
|
08/01/32
|
|
315,556
|
|||||||
|
162,732
|
FNMA Pool #673315
|
5.500
|
%
|
11/01/32
|
|
177,231
|
|||||||
|
735,266
|
FNMA Pool #721255
|
5.500
|
%
|
07/01/33
|
|
800,776
|
|||||||
|
833,031
|
FNMA Pool #725027
|
5.000
|
%
|
11/01/33
|
|
890,437
|
|||||||
|
59,706
|
FNMA Pool #733750
|
6.310
|
%
|
10/01/32
|
|
67,305
|
|||||||
|
319,171
|
FNMA Pool #735861
|
6.500
|
%
|
09/01/33
|
|
363,277
|
|||||||
|
552,602
|
FNMA Pool #745001
|
6.500
|
%
|
09/01/35
|
|
627,930
|
|||||||
|
141,332
|
FNMA Pool #745630
|
5.500
|
%
|
01/01/29
|
|
154,410
|
|||||||
|
163,924
|
FNMA Pool #801357
|
5.500
|
%
|
08/01/34
|
|
178,529
|
|||||||
|
181,372
|
FNMA Pool #813839
|
6.000
|
%
|
11/01/34
|
|
201,221
|
|||||||
|
959,215
|
FNMA Pool #851655
|
6.000
|
%
|
12/01/35
|
|
1,059,996
|
|||||||
|
130,705
|
FNMA Pool #871394
|
7.000
|
%
|
04/01/21
|
|
143,793
|
|||||||
|
342,939
|
FNMA Pool #888211
|
7.000
|
%
|
08/01/36
|
|
397,259
|
|||||||
|
139,798
|
FNMA Pool #888367
|
7.000
|
%
|
03/01/37
|
|
161,028
|
|||||||
|
403,457
|
FNMA Pool #889649
|
6.500
|
%
|
08/01/37
|
|
445,157
|
|||||||
|
281,437
|
FNMA Pool #995346
|
6.500
|
%
|
09/01/36
|
|
319,802
|
|||||||
|
515,985
|
FNMA Pool #995656
|
7.000
|
%
|
06/01/33
|
|
597,609
|
|||||||
|
102,000
|
FNMA, Series 2004-25, Class UC
|
5.500
|
%
|
04/25/34
|
|
105,612
|
|||||||
|
205,000
|
FNMA, Series 2005-106, Class UK
|
5.500
|
%
|
12/25/35
|
|
209,912
|
|||||||
|
250,000
|
FNMA, Series 2007-116, Class PB
|
5.500
|
%
|
08/25/35
|
|
279,331
|
|||||||
|
800,000
|
FNMA, Series 2007-81, Class GE
|
6.000
|
%
|
08/25/37
|
|
896,726
|
|||||||
|
155,000
|
FNMA, Series 2008-86, Class GD
|
6.000
|
%
|
03/25/36
|
|
164,375
|
|||||||
|
390,000
|
FNMA, Series 2009-96, Class DB
|
4.000
|
%
|
11/25/29
|
|
394,067
|
|||||||
|
637,760
|
FNMA, Series 2010-12, Class EY
|
4.000
|
%
|
02/25/25
|
|
631,883
|
|||||||
|
1,360,071
|
FNMA, Series 2010-145, Class GB
|
4.000
|
%
|
12/25/30
|
|
1,363,655
|
|||||||
|
429,290
|
FNMA, Series G92-43, Class Z
|
7.500
|
%
|
07/25/22
|
|
484,569
|
|||||||
|
268,795
|
FNMA, Series G93-5, Class Z
|
6.500
|
%
|
02/25/23
|
|
298,150
|
|||||||
| See Notes to Financial Statements. | 36 |
|
Wright Current Income Fund (WCIF)
Portfolio of Investments - As of June 30, 2011
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|||||||||
|
$
|
388
|
GNMA I Pool #176992
|
8.000
|
%
|
11/15/16
|
$
|
391
|
||||||
|
915
|
GNMA I Pool #177784
|
8.000
|
%
|
10/15/16
|
|
929
|
|||||||
|
8,020
|
GNMA I Pool #192357
|
8.000
|
%
|
04/15/17
|
|
8,144
|
|||||||
|
1,761
|
GNMA I Pool #194287
|
9.500
|
%
|
03/15/17
|
|
1,775
|
|||||||
|
755
|
GNMA I Pool #196063
|
8.500
|
%
|
03/15/17
|
|
869
|
|||||||
|
943
|
GNMA I Pool #212601
|
8.500
|
%
|
06/15/17
|
|
1,086
|
|||||||
|
1,297
|
GNMA I Pool #220917
|
8.500
|
%
|
04/15/17
|
|
1,493
|
|||||||
|
3,167
|
GNMA I Pool #223348
|
10.000
|
%
|
08/15/18
|
|
3,194
|
|||||||
|
4,646
|
GNMA I Pool #228308
|
10.000
|
%
|
01/15/19
|
|
5,379
|
|||||||
|
2,118
|
GNMA I Pool #230223
|
9.500
|
%
|
04/15/18
|
|
2,136
|
|||||||
|
3,055
|
GNMA I Pool #260999
|
9.500
|
%
|
09/15/18
|
|
3,620
|
|||||||
|
4,429
|
GNMA I Pool #263439
|
10.000
|
%
|
02/15/19
|
|
4,467
|
|||||||
|
1,191
|
GNMA I Pool #265267
|
9.500
|
%
|
08/15/20
|
|
1,427
|
|||||||
|
1,362
|
GNMA I Pool #266983
|
10.000
|
%
|
02/15/19
|
|
1,593
|
|||||||
|
663
|
GNMA I Pool #286556
|
9.000
|
%
|
03/15/20
|
|
786
|
|||||||
|
1,274
|
GNMA I Pool #301366
|
8.500
|
%
|
06/15/21
|
|
1,343
|
|||||||
|
3,913
|
GNMA I Pool #302933
|
8.500
|
%
|
06/15/21
|
|
4,657
|
|||||||
|
9,367
|
GNMA I Pool #308792
|
9.000
|
%
|
07/15/21
|
|
11,174
|
|||||||
|
1,630
|
GNMA I Pool #314222
|
8.500
|
%
|
04/15/22
|
|
1,949
|
|||||||
|
1,522
|
GNMA I Pool #315187
|
8.000
|
%
|
06/15/22
|
|
1,591
|
|||||||
|
6,831
|
GNMA I Pool #315754
|
8.000
|
%
|
01/15/22
|
|
6,866
|
|||||||
|
21,296
|
GNMA I Pool #319441
|
8.500
|
%
|
04/15/22
|
|
23,962
|
|||||||
|
6,232
|
GNMA I Pool #325165
|
8.000
|
%
|
06/15/22
|
|
7,310
|
|||||||
|
6,914
|
GNMA I Pool #335950
|
8.000
|
%
|
10/15/22
|
|
7,875
|
|||||||
|
102,708
|
GNMA I Pool #346987
|
7.000
|
%
|
12/15/23
|
|
119,220
|
|||||||
|
45,654
|
GNMA I Pool #352001
|
6.500
|
%
|
12/15/23
|
|
52,136
|
|||||||
|
14,562
|
GNMA I Pool #352110
|
7.000
|
%
|
08/15/23
|
|
16,903
|
|||||||
|
43,938
|
GNMA I Pool #368238
|
7.000
|
%
|
12/15/23
|
|
51,002
|
|||||||
|
23,398
|
GNMA I Pool #372379
|
8.000
|
%
|
10/15/26
|
|
27,748
|
|||||||
|
39,986
|
GNMA I Pool #399726
|
7.490
|
%
|
05/15/25
|
|
46,855
|
|||||||
|
96,016
|
GNMA I Pool #399788
|
7.490
|
%
|
09/15/25
|
|
112,508
|
|||||||
|
27,199
|
GNMA I Pool #399958
|
7.490
|
%
|
02/15/27
|
|
31,913
|
|||||||
|
26,016
|
GNMA I Pool #399964
|
7.490
|
%
|
04/15/26
|
|
30,485
|
|||||||
|
45,479
|
GNMA I Pool #410215
|
7.500
|
%
|
12/15/25
|
|
53,307
|
|||||||
|
4,527
|
GNMA I Pool #414736
|
7.500
|
%
|
11/15/25
|
|
5,306
|
|||||||
|
20,172
|
GNMA I Pool #420707
|
7.000
|
%
|
02/15/26
|
|
23,461
|
|||||||
|
15,797
|
GNMA I Pool #421829
|
7.500
|
%
|
04/15/26
|
|
18,516
|
|||||||
|
9,269
|
GNMA I Pool #431036
|
8.000
|
%
|
07/15/26
|
|
10,989
|
|||||||
|
13,660
|
GNMA I Pool #431612
|
8.000
|
%
|
11/15/26
|
|
13,947
|
|||||||
|
4,559
|
GNMA I Pool #442190
|
8.000
|
%
|
12/15/26
|
|
5,397
|
|||||||
|
46,640
|
GNMA I Pool #448970
|
8.000
|
%
|
08/15/27
|
|
55,347
|
|||||||
|
8,366
|
GNMA I Pool #449176
|
6.500
|
%
|
07/15/28
|
|
9,546
|
|||||||
|
21,073
|
GNMA I Pool #462623
|
6.500
|
%
|
03/15/28
|
|
24,046
|
|||||||
|
113,863
|
GNMA I Pool #471369
|
5.500
|
%
|
05/15/33
|
|
126,086
|
|||||||
|
262,582
|
GNMA I Pool #487108
|
6.000
|
%
|
04/15/29
|
|
294,803
|
|||||||
|
129,843
|
GNMA I Pool #489377
|
6.375
|
%
|
03/15/29
|
|
147,543
|
|||||||
|
396,324
|
GNMA I Pool #503405
|
6.500
|
%
|
04/15/29
|
|
452,242
|
|||||||
|
133,658
|
GNMA I Pool #509930
|
5.500
|
%
|
06/15/29
|
|
148,297
|
|||||||
|
258,519
|
GNMA I Pool #509965
|
5.500
|
%
|
06/15/29
|
|
286,834
|
|||||||
|
35,343
|
GNMA I Pool #524811
|
6.375
|
%
|
09/15/29
|
|
40,161
|
|||||||
|
14,646
|
GNMA I Pool #538314
|
7.000
|
%
|
02/15/32
|
|
17,141
|
|||||||
|
92,122
|
GNMA I Pool #595606
|
6.000
|
%
|
11/15/32
|
|
103,152
|
|||||||
|
15,164
|
GNMA I Pool #602377
|
4.500
|
%
|
06/15/18
|
|
16,361
|
|||||||
|
19,407
|
GNMA I Pool #603377
|
4.500
|
%
|
01/15/18
|
|
20,939
|
|||||||
|
170,496
|
GNMA I Pool #615403
|
4.500
|
%
|
08/15/33
|
|
181,401
|
|||||||
|
120,298
|
GNMA I Pool #616829
|
5.500
|
%
|
01/15/25
|
|
133,737
|
|||||||
|
109,544
|
GNMA I Pool #623190
|
6.000
|
%
|
12/15/23
|
|
122,763
|
|||||||
| See Notes to Financial Statements. | 37 |
|
Wright Current Income Fund (WCIF)
Portfolio of Investments - As of June 30, 2011
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|||||||||
|
$
|
351,833
|
GNMA I Pool #624600
|
6.150
|
%
|
01/15/34
|
$
|
403,915
|
||||||
|
69,904
|
GNMA I Pool #640940
|
5.500
|
%
|
05/15/35
|
|
77,670
|
|||||||
|
31,381
|
GNMA I Pool #658267
|
6.500
|
%
|
02/15/22
|
|
34,655
|
|||||||
|
846,764
|
GNMA I Pool #711286
|
6.500
|
%
|
10/15/32
|
|
950,318
|
|||||||
|
34,495
|
GNMA I Pool #780429
|
7.500
|
%
|
09/15/26
|
|
40,434
|
|||||||
|
203,114
|
GNMA I Pool #780492
|
7.000
|
%
|
09/15/24
|
|
235,897
|
|||||||
|
117,164
|
GNMA I Pool #780977
|
7.500
|
%
|
12/15/28
|
|
141,156
|
|||||||
|
296,829
|
GNMA I Pool #781120
|
7.000
|
%
|
12/15/29
|
|
346,417
|
|||||||
|
22,060
|
GNMA II Pool #000723
|
7.500
|
%
|
01/20/23
|
|
25,500
|
|||||||
|
1,781
|
GNMA II Pool #001596
|
9.000
|
%
|
04/20/21
|
|
2,116
|
|||||||
|
25,698
|
GNMA II Pool #002268
|
7.500
|
%
|
08/20/26
|
|
30,005
|
|||||||
|
84,617
|
GNMA II Pool #002442
|
6.500
|
%
|
06/20/27
|
|
95,900
|
|||||||
|
3,670
|
GNMA II Pool #002855
|
8.500
|
%
|
12/20/29
|
|
4,433
|
|||||||
|
122,056
|
GNMA II Pool #003284
|
5.500
|
%
|
09/20/32
|
|
135,253
|
|||||||
|
80,729
|
GNMA II Pool #003401
|
4.500
|
%
|
06/20/33
|
|
85,896
|
|||||||
|
451,272
|
GNMA II Pool #003403
|
5.500
|
%
|
06/20/33
|
|
499,784
|
|||||||
|
117,733
|
GNMA II Pool #003554
|
4.500
|
%
|
05/20/34
|
|
125,011
|
|||||||
|
547,689
|
GNMA II Pool #003556
|
5.500
|
%
|
05/20/34
|
|
606,224
|
|||||||
|
318,099
|
GNMA II Pool #003689
|
4.500
|
%
|
03/20/35
|
|
337,567
|
|||||||
|
809,246
|
GNMA II Pool #003931
|
6.000
|
%
|
12/20/36
|
|
897,841
|
|||||||
|
38,277
|
GNMA II Pool #004149
|
7.500
|
%
|
05/20/38
|
|
44,390
|
|||||||
|
1,416,248
|
GNMA II Pool #004260
|
6.000
|
%
|
10/20/38
|
|
1,550,202
|
|||||||
|
710,955
|
GNMA II Pool #004291
|
6.000
|
%
|
11/20/38
|
|
786,568
|
|||||||
|
449,347
|
GNMA II Pool #004308
|
5.000
|
%
|
12/20/38
|
|
482,721
|
|||||||
|
362,799
|
GNMA II Pool #004412
|
5.000
|
%
|
04/20/39
|
|
389,744
|
|||||||
|
808,620
|
GNMA II Pool #004561
|
6.000
|
%
|
10/20/39
|
|
896,318
|
|||||||
|
682,129
|
GNMA II Pool #004751
|
7.000
|
%
|
12/20/38
|
|
789,085
|
|||||||
|
204,168
|
GNMA II Pool #004752
|
7.500
|
%
|
11/20/38
|
|
240,585
|
|||||||
|
486,664
|
GNMA II Pool #004753
|
8.000
|
%
|
08/20/30
|
|
574,933
|
|||||||
|
636,818
|
GNMA II Pool #004805
|
6.500
|
%
|
09/20/40
|
|
720,932
|
|||||||
|
195,780
|
GNMA II Pool #004808
|
8.000
|
%
|
01/20/31
|
|
231,913
|
|||||||
|
1,149,053
|
GNMA II Pool #004838
|
6.500
|
%
|
10/20/40
|
|
1,300,824
|
|||||||
|
1,237,485
|
GNMA II Pool #004848
|
3.500
|
%
|
11/20/40
|
|
1,191,852
|
|||||||
|
434,416
|
GNMA II Pool #004993
|
7.000
|
%
|
03/20/41
|
|
502,022
|
|||||||
|
95,841
|
GNMA II Pool #575787
|
5.760
|
%
|
03/20/33
|
|
106,084
|
|||||||
|
103,517
|
GNMA II Pool #608120
|
6.310
|
%
|
01/20/33
|
|
115,044
|
|||||||
|
295,183
|
GNMA II Pool #610116
|
5.760
|
%
|
04/20/33
|
|
327,100
|
|||||||
|
68,997
|
GNMA II Pool #610143
|
5.760
|
%
|
06/20/33
|
|
76,371
|
|||||||
|
233,315
|
GNMA II Pool #612121
|
5.760
|
%
|
07/20/33
|
|
258,251
|
|||||||
|
221,868
|
GNMA II Pool #648541
|
6.000
|
%
|
10/20/35
|
|
246,123
|
|||||||
|
1,168,628
|
GNMA II Pool #719213
|
6.500
|
%
|
02/20/33
|
|
1,323,897
|
|||||||
|
103,575
|
GNMA Pool #780685
|
6.500
|
%
|
12/15/27
|
|
118,254
|
|||||||
|
846,711
|
GNMA, Series 1998-21, Class ZB
|
6.500
|
%
|
09/20/28
|
|
960,884
|
|||||||
|
189,737
|
GNMA, Series 1999-25, Class TB
|
7.500
|
%
|
07/16/29
|
|
223,093
|
|||||||
|
729,671
|
GNMA, Series 1999-4, Class ZB
|
6.000
|
%
|
02/20/29
|
|
810,900
|
|||||||
|
280,296
|
GNMA, Series 2000-14, Class PD
|
7.000
|
%
|
02/16/30
|
|
308,102
|
|||||||
|
220,806
|
GNMA, Series 2001-4, Class PM
|
6.500
|
%
|
03/20/31
|
|
264,505
|
|||||||
|
276,225
|
GNMA, Series 2002-22, Class GF
|
6.500
|
%
|
03/20/32
|
|
311,538
|
|||||||
|
189,841
|
GNMA, Series 2002-40, Class UK
|
6.500
|
%
|
06/20/32
|
|
216,892
|
|||||||
|
149,794
|
GNMA, Series 2002-45, Class QE
|
6.500
|
%
|
06/20/32
|
|
174,341
|
|||||||
|
242,540
|
GNMA, Series 2002-6, Class GE
|
6.500
|
%
|
01/20/32
|
|
277,588
|
|||||||
|
122,392
|
GNMA, Series 2002-7, Class PG
|
6.500
|
%
|
01/20/32
|
|
141,510
|
|||||||
|
391,751
|
GNMA, Series 2002-76, Class EA
|
4.500
|
%
|
12/20/29
|
|
412,589
|
|||||||
|
738,938
|
GNMA, Series 2002-76, Class TC
|
4.500
|
%
|
12/16/26
|
|
787,950
|
|||||||
|
192,000
|
GNMA, Series 2003-2, Class AG
|
5.000
|
%
|
01/20/33
|
|
206,260
|
|||||||
|
120,000
|
GNMA, Series 2007-18, Class B
|
5.500
|
%
|
05/20/35
|
|
130,690
|
|||||||
|
300,000
|
GNMA, Series 2008-35, Class EH
|
5.500
|
%
|
03/20/38
|
|
329,548
|
|||||||
| See Notes to Financial Statements. | 38 |
|
Wright Current Income Fund (WCIF)
Portfolio of Investments - As of June 30, 2011
|
|
Face Amount
|
Description
|
Coupon Rate
|
Maturity Date
|
Value
|
|||||||||
|
$
|
2,000,000
|
GNMA, Series 2010-116, Class PB
|
5.000
|
%
|
06/16/40
|
$
|
2,155,666
|
||||||
|
339,712
|
Vendee Mortgage Trust, Series 1996-1, Class 1Z
|
6.750
|
%
|
02/15/26
|
|
391,919
|
|||||||
|
278,512
|
Vendee Mortgage Trust, Series 1998-1, Class 2E
|
7.000
|
%
|
03/15/28
|
|
321,994
|
|||||||
|
Total Agency Mortgage-Backed Securities (identified cost, $43,172,570)
|
$
|
45,203,115
|
|
TOTAL FIXED INCOME INVESTMENTS (identified cost, $43,172,570) — 97.5%
|
$
|
45,203,115
|
|
SHORT-TERM INVESTMENTS - 2.1%
|
|
$
|
969,627
|
Fidelity Government Money Market Fund, 0.01% (1)
|
$
|
969,627
|
|
TOTAL SHORT-TERM INVESTMENTS (identified cost, $969,627) — 2.1%
|
$
|
969,627
|
|
TOTAL INVESTMENTS (identified cost, $44,142,197) — 99.6%
|
$
|
46,172,742
|
|
OTHER ASSETS, IN EXCESS OF LIABILITIES — 0.4%
|
168,240
|
|
NET ASSETS — 100.0%
|
$
|
46,340,982
|
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, 2011.
|
|
Portfolio Composition by Security Type
|
|
|
% of total investments at June 30, 2011
|
|
|
Agency Mortgage-Backed Securities
|
97.9%
|
|
Short-Term Investments
|
2.1%
|
| See Notes to Financial Statements. | 39 |
|
Wright Current Income Fund (WCIF)
|
|
As of June 30, 2011
|
For the Six Months Ended June 30, 2011
|
|||||||||||||
|
ASSETS:
|
INVESTMENT INCOME (Note 1C)
|
|||||||||||||
|
Investments, at value
|
0
|
Dividend income
|
$
|
134
|
||||||||||
|
(identified cost $44,142,197) (Note 1A)
|
$
|
46,172,742
|
|
Interest income
|
884,351
|
|||||||||
|
Receivable for fund shares sold
|
73,603
|
Total investment income
|
$
|
884,485
|
||||||||||
|
Dividends and interest receivable
|
201,991
|
|||||||||||||
|
Prepaid expenses and other assets
|
27,774
|
Expenses –
|
||||||||||||
|
Total assets
|
$
|
46,476,110
|
Investment adviser fee (Note 3)
|
$
|
95,360
|
|||||||||
|
Administrator fee (Note 3)
|
19,072
|
|||||||||||||
|
LIABILITIES:
|
Trustee expense (Note 3)
|
10,816
|
||||||||||||
|
Payable for fund shares reacquired
|
$
|
35,794
|
Custodian fee
|
2,119
|
||||||||||
|
Distributions payable
|
76,360
|
Accountant fees
|
20,196
|
|||||||||||
|
Accrued expenses and other liabilities
|
22,974
|
Distribution expenses (Note 4)
|
52,977
|
|||||||||||
|
Total liabilities
|
$
|
135,128
|
Transfer agent fees
|
18,360
|
||||||||||
|
NET ASSETS
|
$
|
46,340,982
|
Printing
|
96
|
||||||||||
|
Shareholder communications
|
3,785
|
|||||||||||||
|
NET ASSETS CONSIST OF:
|
Audit services
|
12,343
|
||||||||||||
|
Paid-in capital
|
$
|
45,211,510
|
Legal services
|
5,571
|
||||||||||
|
Accumulated net realized loss on investments
|
(677,604
|
)
|
Registration costs
|
9,546
|
||||||||||
|
Distributions in excess of net investment income
|
(223,469
|
)
|
Miscellaneous
|
18,145
|
||||||||||
|
Unrealized appreciation on investments
|
2,030,545
|
Total expenses
|
$
|
268,386
|
||||||||||
|
Net assets applicable to outstanding shares
|
$
|
46,340,982
|
||||||||||||
|
Deduct –
|
||||||||||||||
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
4,639,285
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
$
|
(77,760
|
)
|
|||||||||
|
Net expenses
|
$
|
190,626
|
||||||||||||
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
$
|
9.99
|
Net investment income
|
$
|
693,859
|
|||||||||
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
|
||||||||||||||
|
|
Net realized loss on investment transactions
|
$
|
(13,140
|
)
|
||||||||||
|
|
Net change in unrealized appreciation (depreciation) on investments
|
562,097
|
||||||||||||
|
Net realized and unrealized gain on investments
|
$
|
548,957
|
||||||||||||
|
Net increase in net assets from operations
|
$
|
1,242,816
|
||||||||||||
| See Notes to Financial Statements. | 40 |
|
Wright Current Income Fund (WCIF)
|
|
Six Months Ended
|
Year Ended
|
|||||||||
|
STATEMENTS OF CHANGES IN NET ASSETS
|
June 30, 2011
|
December 31, 2010
|
||||||||
|
INCREASE (DECREASE) IN NET ASSETS:
|
||||||||||
|
From operations –
|
||||||||||
|
Net investment income
|
$
|
693,859
|
$
|
1,368,857
|
||||||
|
0
|
Net realized gain (loss) on investment transactions
|
(13,140
|
)
|
244,084
|
||||||
|
Net change in unrealized appreciation (depreciation) on investments
|
562,097
|
261,790
|
||||||||
|
Net increase in net assets from operations
|
$
|
1,242,816
|
$
|
1,874,731
|
||||||
|
Distributions to shareholders (Note 2)
|
||||||||||
|
From net investment income
|
$
|
(918,827
|
)
|
$
|
(1,698,180
|
)
|
||||
|
Total distributions
|
$
|
(918,827
|
)
|
$
|
(1,698,180
|
)
|
||||
|
Net increase in net assets resulting from fund share transactions (Note 6)
|
$
|
5,432,703
|
$
|
7,378,534
|
||||||
|
Net increase in net assets
|
$
|
5,756,692
|
$
|
7,555,085
|
||||||
|
|
||||||||||
|
NET ASSETS:
|
||||||||||
|
At begining of period
|
40,584,290
|
33,029,205
|
||||||||
|
At end of period
|
$
|
46,340,982
|
$
|
40,584,290
|
||||||
|
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD
|
$
|
(223,469
|
)
|
$
|
1,499
|
|||||
| See Notes to Financial Statements. | 41 |
|
Wright Current Income Fund (WCIF)
|
|
Six Months Ended
June 30, 2011
|
Years Ended December 31,
|
|||||||||||||||||||
|
FINANCIAL HIGHLIGHTS
|
2010
|
2009
|
2008
|
2007
|
2006
|
|||||||||||||||
|
Net asset value, beginning of period
|
$
|
9.910
|
$
|
9.830
|
(1)
|
$
|
9.700
|
$
|
9.590
|
$
|
9.510
|
$
|
9.610
|
|||||||
|
Income (loss) from investment operations:
|
||||||||||||||||||||
|
Net investment income (2)
|
0.161
|
0.377
|
0.472
|
0.447
|
0.455
|
0.427
|
||||||||||||||
|
Net realized and unrealized gain (loss)
|
0.133
|
0.175
|
0.118
|
(1)
|
0.122
|
0.078
|
(0.063
|
)
|
||||||||||||
|
Total income from investment operations
|
0.294
|
0.552
|
0.590
|
(1)
|
0.569
|
0.533
|
0.364
|
|||||||||||||
|
Less distributions:
|
||||||||||||||||||||
|
From net investment income
|
(0.214
|
)
|
(0.472
|
)
|
(0.460
|
)
|
(0.459
|
)
|
(0.444
|
)
|
(0.447
|
)
|
||||||||
|
From net realized gains
|
—
|
—
|
—
|
—
|
(0.009
|
)
|
(0.017
|
)
|
||||||||||||
|
Total distributions
|
(0.214
|
)
|
(0.472
|
)
|
(0.460
|
)
|
(0.459
|
)
|
(0.453
|
)
|
(0.464
|
)
|
||||||||
|
Net asset value, end of period
|
$
|
9.990
|
$
|
9.910
|
$
|
9.830
|
(1)
|
$
|
9.700
|
$
|
9.590
|
$
|
9.510
|
|||||||
|
Total Return(3)
|
2.99
|
%(4)
|
5.66
|
%
|
6.20
|
%
|
6.10
|
%
|
5.77
|
%
|
3.92
|
%
|
||||||||
|
Ratios/Supplemental Data(6):
|
||||||||||||||||||||
|
Net assets, end of period (000 omitted)
|
$46,341
|
$40,584
|
$33,029
|
$38,806
|
$39,699
|
$40,474
|
||||||||||||||
|
Ratios (As a percentage of
average daily net assets):
|
||||||||||||||||||||
|
Net expenses
|
0.90
|
%(5)
|
0.90
|
%
|
0.92
|
%
|
0.96
|
%
|
0.96
|
%
|
0.96
|
%
|
||||||||
|
Net expenses after custodian fee reduction
|
N/A
|
N/A
|
0.92
|
%
|
0.95
|
%
|
0.95
|
%
|
0.95
|
%
|
||||||||||
|
Net investment income
|
3.27
|
%(5)
|
3.79
|
%
|
4.81
|
%
|
4.66
|
%
|
4.80
|
%
|
4.47
|
%
|
||||||||
|
Portfolio turnover rate
|
27
|
%(4)
|
54
|
%
|
57
|
%
|
57
|
%
|
47
|
%
|
75
|
%
|
||||||||
|
|
||||||||||||||||||||
|
(1)
|
Previously reported amount has been changed by 0.001 to reflect rounding consistencies.
|
|||||||||||||||||||
|
(2)
|
Computed using average shares outstanding.
|
|||||||||||||||||||
|
(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 the six months ended June 30, 2011, and for the years ended December 31, 2010, 2009, 2008, 2007 and 2006, 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:
|
|||||||||||||||||||
|
2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
|||||||||||||||
|
Ratios (As a percentage of
average daily net assets):
|
||||||||||||||||||||
|
Gross expenses
|
1.27
|
%(5)
|
1.33
|
%
|
1.32
|
%
|
1.24
|
%
|
1.23
|
%
|
1.31
|
%
|
||||||||
|
Gross expenses after custodian fee
|
N/A
|
N/A
|
1.32
|
%
|
1.23
|
%
|
1.22
|
%
|
1.30
|
%
|
||||||||||
|
reduction
|
||||||||||||||||||||
|
Net investment income
|
2.91
|
%(5)
|
3.36
|
%
|
4.41
|
%
|
4.38
|
%
|
4.52
|
%
|
4.13
|
%
|
||||||||
| See Notes to Financial Statements. | 42 |
|
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 for dividends received in cash and/or securities. 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. 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 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, 2010, WTRB and WCIF, for federal income tax purposes, had capital loss carryovers of $1,857,855 and 604,928, 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 carryovers will expire as follows:
| 43 |
|
Wright Managed Income Trust
Notes to Financial Statements
|
|
December 31,
|
WTRB
|
WCIF
|
|
2012
|
$ -
|
$ 248,470
|
|
2013
|
270,953
|
196,117
|
|
2014
|
1,088,772
|
-
|
|
2015
|
199,047
|
160,341
|
|
2017
|
299,083
|
-
|
A capital loss carryover of $444,587, included in WCIF’s amount in the table above, is available to the Fund as a result of the reorganization of Wright U.S. Government Near Term Fund on December 9, 2006. Utilization of this capital loss carryover may be limited in accordance with certain income tax regulations.
As of June 30, 2011, 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, 2010, 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, 2011, 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.
| 44 |
|
Wright Managed Income Trust
Notes to Financial Statements
|
As of December 31, 2010, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
|
WTRB
|
WCIF
|
|||||||
|
Undistributed ordinary income
|
$
|
-
|
$
|
1,499
|
||||
|
Capital loss carryforward and post October losses
|
(1,877,616
|
)
|
(626,200
|
)
|
||||
|
Unrealized appreciation
|
1,007,467
|
1,430,184
|
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 prior year post-October loss was $19,761 and $21,272 (realized during the period November 1, 2010 through December 31, 2010) for WTRB and WCIF, respectively. These losses were recognized for tax purposes on the first business day of each Fund’s current fiscal year, January 1, 2011.
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 six months ended June 30, 2011, 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
|
$64,487
|
0.45%
|
|
WCIF
|
$95,360
|
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 at reduced rates as net assets exceed that level. 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 six months ended June 30, 2011, the administrator fee for WTRB and WCIF amounted to $10,653 and $19,072, 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 is also reimbursed for all reasonable out-of-pocket expenses incurred in connection with his duties as a
| 45 |
|
Wright Managed Income Trust
Notes to Financial Statements
|
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 six months ended June 30, 2011, for WTRB and WCIF were $38,048 and $52,977, 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 six months ended June 30, 2011, 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, 2012 (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 $28,124 and $24,783 for WTRB and WCIF, respectively. WISDI waived distribution fees of $38,048 and $52,977 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, 2011
|
||
|
WTRB
|
WCIF
|
|
|
Purchases -
|
||
|
Non-U.S. Government & Agency Obligations
|
$3,160,920
|
$ -
|
|
U.S. Government & Agency Obligations
|
$7,005,545
|
$16,785,785
|
|
Sales -
|
||
|
Non-U.S. Government & Agency Obligations
|
$1,973,251
|
$ 34,229
|
|
U.S. Government & Agency Obligations
|
$8,922,780
|
$11,227,917
|
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:
| 46 |
|
Wright Managed Income Trust
Notes to Financial Statements
|
|
Six Months Ended
June 30, 2011
|
Year Ended
December 31, 2010
|
|||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||
|
WTRB
|
||||||||||||
|
Sold
|
283,854
|
$
|
3,663,740
|
969,280
|
$
|
12,544,600
|
||||||
|
Issued to shareholders in payment of distributions declared
|
30,075
|
389,241
|
61,226
|
792,638
|
||||||||
|
Redemptions
|
(382,227
|
)
|
(4,932,950
|
)
|
(530,770
|
)
|
(6,846,658
|
)
|
||||
|
Net increase (decrease)
|
(68,298
|
)
|
$
|
(879,969
|
)
|
499,736
|
$
|
6,490,580
|
||||
|
WCIF
|
|||||||||||
|
Sold
|
1,050,161
|
$
|
10,442,672
|
2,147,771
|
$
|
21,431,508
|
|||||
|
Issued to shareholders in payment of distributions declared
|
52,597
|
523,268
|
110,447
|
1,099,985
|
|||||||
|
Redemptions
|
(557,116
|
)
|
(5,533,237
|
)
|
(1,524,435
|
)
|
(15,152,959
|
)
|
|||
|
Net increase
|
545,642
|
$
|
5,432,703
|
733,783
|
$
|
7,378,534
|
|||||
7. Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of the investment securities owned at June 30, 2011, as computed on a federal income tax basis, were as follows:
|
Six Months Ended June 30, 2011
|
|||||||
|
WTRB
|
WCIF
|
||||||
|
Aggregate cost
|
$
|
29,067,207
|
$
|
44,142,197
|
|||
|
Gross unrealized appreciation
|
$
|
1,504,669
|
$
|
2,096,158
|
|||
|
Gross unrealized depreciation
|
|
(43,869
|
)
|
|
(65,613
|
)
|
|
|
Net unrealized appreciation
|
$
|
1,460,800
|
$
|
2,030,545
|
|||
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, 2011, WTRB had a balance outstanding pursuant to this line of credit of $84,778 at an interest rate of 1.19%.
The average borrowings and average interest rate (based on days with outstanding balances) for the six months ended June 30, 2011, were as follows:
|
WTRB
|
||
|
Average borrowings
|
$91,126
|
|
|
Average interest rate
|
1.26%
|
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
| 47 |
|
Wright Managed Income Trust
Notes to Financial Statements
|
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, 2011, 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
|
||||
|
Asset-Backed Securities
|
$
|
-
|
$
|
712,067
|
$
|
-
|
$
|
712,067
|
|
Commerical Mortgage-Backed Securities
|
-
|
2,715,347
|
-
|
2,715,347
|
||||
|
Residential Mortgage-Backed Securities
|
-
|
57,996
|
-
|
57,996
|
||||
|
Convertible Bonds
|
-
|
131,138
|
-
|
13,138
|
||||
|
Corporate Bonds
|
-
|
14,535,940
|
-
|
14,535,940
|
||||
|
U.S. Government Interests
|
-
|
12,375,519
|
-
|
12,375,519
|
||||
|
Total Investments
|
$
|
-
|
$
|
30,528,007
|
$
|
-
|
$
|
30,528,007
|
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
|
$
|
-
|
$
|
45,203,115
|
$
|
-
|
$
|
45,203,115
|
|
Short-Term Investments
|
-
|
969,627
|
-
|
969,627
|
||||
|
Total Investments
|
$
|
-
|
$
|
46,172,742
|
$
|
-
|
$
|
46,172,742
|
The level classification by major category of investments is the same as the category presentation in each Fund’s Portfolio of Investments.
10. New Accounting Pronouncement
In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about Fair Value Measurements.” ASU No. 2010-06 clarifies existing disclosure and requires additional disclosures regarding fair value measurements. Effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years, entities will need to disclose information about purchases, sales, issuances and settlements of Level 3 securities on a gross basis, rather than as a net number as currently required. Management has evaluated ASU No. 2010-06 and has determined that it did not have a significant impact on the reporting of the financial statement disclosures.
| 48 |
|
Wright Managed Income Trust
Notes to Financial Statements
|
In May 2011, FASB issued ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” ASU No. 2011-04 establishes common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. GAAP and International Financial Reporting Standards (“IFRSs”). ASU No. 2011-04 is effective for interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact ASU No. 2011-04 may have on financial statement disclosures.
11. Review for Subsequent Events
In connection with the preparation of the financial statements of the Funds as of and for the six months ended June 30, 2011, events and transactions subsequent to June 30, 2011, 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.
| 49 |
|
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. They noted that the vendor transitions during 2009 and 2010 have gone smoothly and the quality of customer service does not appear to be a concern. The Trustees also considered the resources devoted to Wright’s compliance efforts and the 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 Wright Selected Blue Chip Equities Fund (WSBC) underperformed its benchmark and outperformed its peer group in 2010. They also observed that, in the three to ten year time frames, WSBC had comparable performance to its peer group but lower performance relative to its benchmark.
The Trustees saw that Wright Major Blue Chip Equities Fund (WMBC) performed comparably to its benchmark and its peer group in 2010. While recognizing that the large market decline in the third quarter of 2008 distorted the longer term references, they noted that WMBC generally underperformed its peer group and benchmark in all time periods.
The Trustees observed that Wright International Blue Chip Equities Fund (WIBC) underperformed its benchmark and its peer group in 2010. They noted that WIBC underperformed its peer group and benchmark in all other time periods, although much of the longer term underperformance was tied to a large decline in 2008.
The Trustees noted Wright Total Return Bond Fund (WTRB) performed comparably to its benchmark in 2010, but fell behind its peer group during that period. They also noted that in prior periods WTRB performed comparably to the index while outperforming its peer group.
The Trustees observed that Wright Current Income Fund (WCIF) outperformed its peer group and was comparable to its benchmark in 2010, noting that WCIF has consistently outperformed its peer group across all time 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. The Trustees specifically noted that the WIBC’s net expense ratio exceeded its peer group average, although WIBC’s gross expense ratio and management fee were commensurate with the peer group average. 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 recognized the impact of the decline in the equity market in 2008, noting that the equity Funds rebounded nicely in 2009 and 2010. They observed that performance in 2010 was slightly below average for the Funds generally, with the exception of WIBC 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 a subsidy by Wright to any Fund limits overall profitability of that Fund to Wright. The Trustee 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.
| 50 |
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Important Notices Regarding Privacy, Delivery of Shareholder
Documents, Portfolio Holdings and Proxy Voting
|
Wright Managed Investment Funds
Wright Investors’ Service, Inc.
Wright Investors’ Service Distributors, Inc.
Privacy Policy
Wright is committed to ensuring your financial privacy. Each of the above financial institutions has the following policy in effect with respect to nonpublic personal information about its customers:
|
|
• The only such information we collect is information received from customers, through application forms or otherwise, and information which we necessarily receive in connection with your Wright fund transactions.
|
|
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• We will not disclose this information to anyone except as required or permitted by law. Such disclosure includes that made to other companies such as transfer agents and their employees and to our employees, in each case as necessary to service your account.
|
|
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• We have adopted polices and procedures (including physical, electronic and procedural safeguards) that are designed to protect the confidentiality of this information.
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For more information about Wright’s privacy policies please feel free to call (800) 888-9471.
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) 888-9471, 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.wisi.com and are available upon request at no additional cost by contacting Wright at (800) 888-9471.
| 51 |
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Important Notices Regarding Privacy, Delivery of Shareholder
Documents, Portfolio Holdings and Proxy Voting
|
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 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) 888-9471. This description is also available on the SEC website at http://www.sec.gov.
| 52 |
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. SCHEDULE OF 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 Income Trust (On behalf of Wright Total Return Bond Fund and Wright Current Income Fund)
| By | /s/ Peter M. Donovan | |
|
Peter M. Donovan
|
||
| President | ||
| Date |
August 19, 2011
|
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 19, 2011
|
| By | /s/ Michael J. McKeen | |
|
Michael J. McKeen
|
||
| Treasurer | ||
| Date |
August 19, 2011
|