-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, D5LssrYl6WpnqkamYja3CUF6uZwMW1jedEgtQH6VefoFSbnggXaN4vt9z5M+ix5Z U3ziylT+T/X1hAejIszs/Q== 0000715165-96-000008.txt : 19960508 0000715165-96-000008.hdr.sgml : 19960508 ACCESSION NUMBER: 0000715165-96-000008 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19960507 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WRIGHT MANAGED INCOME TRUST CENTRAL INDEX KEY: 0000715165 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 042789493 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-81915 FILM NUMBER: 96557133 BUSINESS ADDRESS: STREET 1: 24 FEDERAL ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174828260 FORMER COMPANY: FORMER CONFORMED NAME: WRIGHT MANAGED BOND TRUST DATE OF NAME CHANGE: 19910331 FORMER COMPANY: FORMER CONFORMED NAME: BOND FUND FOR BANK TRUST DEPARTMENTS BFBT FUND DATE OF NAME CHANGE: 19880218 497 1 P R O S P E C T U S May 1, 1996 =============================================================================== Wright U.S. Treasury Money Market Fund a series of The Wright Managed Income Trust - ------------------------------------------------------------------------------ An investment in the Fund is neither insured nor guaranteed by the U.S. Government, and there is no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share. Write To: The Wright Managed Investment Funds, BOS 725, Box 1559, Boston, MA 02104 Or Call: The Fund Order Room - (800) 225-6265 - ------------------------------------------------------------------------------- This Prospectus is designed to provide you with information you should know before investing. Please retain this document for future reference. A Statement of Additional Information dated May 1, 1996 has been filed with the Securities and Exchange Commission and is incorporated herein by reference. This Statement is available without charge from Wright Investors' Service Distributors, Inc., 1000 Lafayette Boulevard, Bridgeport, Connecticut 06604 (800-888-9471). Shares of the Fund are not deposits or obligations of, or endorsed or guaranteed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Shares of the Fund involve investment risks, including fluctuations in value and the possible loss of some or all of the principal investment. Table of Contents PAGE An Introduction to the Fund....................... 2 Shareholder and Fund Expenses..................... 4 Financial Highlights.............................. 5 The Fund's Investment Objective and Policies...... 6 Other Investment Policies......................... 6 The Investment Adviser............................ 7 The Administrator................................. 8 How the Fund Values its Shares.................... 9 How to Buy Shares................................. 9 How Shareholder Accounts are Maintained........... 10 Distributions by the Fund......................... 10 Taxes............................................. 11 How to Exchange Shares............................ 11 How to Redeem or Sell Shares...................... 12 Performance Information........................... 14 Other Information................................. 14 Tax-Sheltered Retirement Plans.................... 16 THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. An Introduction to the Fund The information summarized below is qualified in its entirety by the more detailed information set forth in this Prospectus. The Trust................The Wright Managed Income Trust (the "Trust") is an open-end management investment company known as a mutual fund, is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), and consists of five series (the "Funds") (including four series that are being offered under a separate prospectus). Each Fund is a diversified fund and represents a separate and distinct series of the Trust's shares of beneficial interest. The Fund.................Wright U.S. Treasury Money Market Fund (the "Fund"). Investment...............The Fund seeks to provide as high a rate of current Objective income as possible consistent with the preservation of capital and maintenance of liquidity. The Fund intends to invest exclusively in securities of the U.S. Government (as defined on page 6). Net Asset Value.........The Fund seeks to maintain a stable net asset value of $1.00 per share by valuing its securities by the amortized cost method. Accordingly, the Fund will limit its investments to securities with a remaining maturity of 13 months or less and will maintain a weighted average portfolio maturity of not more than 90 days. There can be no assurance that the Fund will be able to maintain a stable net asset value or that the Fund will achieve its investment objective. Net asset value is calculated three times per day. The Investment...........The Fund has engaged Wright Investors' Service, Inc., Adviser 1000 Lafayette Boulevard, Bridgeport, CT 06604 ("Wright" or the "Investment Adviser") as investment adviser to carry out the investment and reinvestment of the Fund's assets. The Administrator........The Fund also has retained Eaton Vance Management ("Eaton Vance" or the "Administrator"), 24 Federal Street, Boston, MA 02110 as administrator to manage the Fund's legal and business affairs. The Distributor..........Wright Investors' Service Distributors, Inc. ("WISDI" or the "Principal Underwriter") is the Distributor of the Fund's shares. The Fund does not make payments of distribution fees. How to Purchase..........Shares of the Fund are sold without a sales charge at Fund Shares the net asset value next determined after receipt of a purchase order. The minimum initial investment is $1,000. There is no minimum for subsequent purchases. The $1,000 minimum initial investment is waived for Bank Draft Investing accounts. See "How to Buy Shares." Distribution ............Distributions are paid in additional shares at net Options asset value or cash as the shareholder elects. Unless the shareholder has elected to receive dividends and distributions in cash, dividends and distributions will be reinvested in additional shares of the Fund at its net asset value per share as of the payable date. Redemptions..............Shares may be redeemed at the net asset value next determined after receipt of the redemption request by telephone or by mail in good order. Also, shareholders may request that they be provided with special forms of checks. These checks may be made payable by the shareholder to the order of any person in any amount of $500 or more. See "How to Redeem or Sell Shares." Exchange ................Shares of the Fund may be exchanged for shares of Privilege certain other Funds managed by the Investment Adviser at the net asset value next determined after receipt o the exchange request. See "How to Exchange Shares." Taxation.................The Fund has elected to be treated, has qualified and intends to continue to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code. Shareholder..............Each shareholder will receive annual and semi-annual Communications reports containing financial statements, and a statement confirming each share transaction. Financial statements included in annual reports are audited by the Trust's independent certified public accountants. Where possible, shareholder confirmations and account statements will consolidate all Wright investment fund holdings of the shareholder. Shareholder and Fund Expenses The following table of fees and expenses is provided to assist investors in understanding the various costs and expenses which may be borne directly or indirectly by an investment in the Fund. The percentages shown below representing total operating expenses are based on actual expenses for the fiscal year ended December 31, 1995, adjusted to reflect a voluntary annual expense limitation of 0.45% of average net assets for fiscal year 1996. - ------------------------------------------------------------------------------- Shareholder Transaction Expenses none Annualized Fund Operating Expenses after expense allocations and fee reductions (as a percentage of average net assets) Investment Adviser Fee (after voluntary fee reduction) 0.16% Other Expenses (including administration fee of 0.07%) 0.30% ----- Total Operating Expenses (after reductions) (1) 0.46% ===== - ------------------------------------------------------------------------------ (1) If no fee reduction were made, the annual Fund operating expenses as a percentage of average net assets would be: Investment Adviser Fee -- 0.35%, Other Expenses -- 0.30%, and Total Operating Expenses --0.65%. During the year ended December 31, 1995, custodian fees were reduced by credits resulting from cash balances that the Trust maintained with Investors Bank & Trust Company. If these credits were reflected in the above table, the Total Operating Expenses shown above would have been 0.45%. Example of Fund Expenses The following is an illustration of the total transaction and operating expenses that an investor in the Fund would bear over different periods of time, assuming a investment of $1,000, a 5% annual return on the investment and redemption at the end of each period: - ------------------------------------------------------------------------------ 1 Year $ 5 3 Years $15 5 Years $26 10 Years $58 - ------------------------------------------------------------------------------ The Example should not be considered a representation of past or future expenses and actual expenses may be greater or less than those shown. Federal regulations require the Example to assume a 5% annual return, but actual return will vary. Financial Highlights The following information should be read in conjunction with the audited financial statements included in the Statement of Additional Information, all of which have been included in reliance upon the report of Deloitte & Touche LLP, independent certified public accountants, as experts in accounting and auditing, which report is contained in the Fund's Statement of Additional Information. Further information regarding the performance of the Fund is contained in the Fund's annual report to shareholders which may be obtained without charge by contacting the Fund's Principal Underwriter, Wright Investors' Service Distributors, Inc. at (800) 888-9471. Year Ended December 31, ---------------------------------------------------- 1995 1994 1993 1992 1991(2) - --------------------------------------------------------------------------------------------------------------------------------- Net asset value-- beginning of year........ $1.00 $1.00 $1.00 $1.00 $1.00 Income from Investment Operations: Net investment income(1)................ 0.05212 0.03494 0.02503 0.03221 0.02526 - --- Less Distributions: From net investment income.............. (0.05212) (0.03494) (0.02503) (0.03221) (0.02526) --------- --------- --------- --------- --------- Net asset value, end of year............... $1.00 $1.00 $1.00 $1.00 $1.00 ========= ========= ========= ========= ========= Total Return(4)............................ 5.34% 3.55% 2.53% 3.27% 5.06%(3) Ratios/Supplemental Data: Net assets, end of year (000 omitted)... $45,889 $68,877 $11,011 $13,856 $15,233 Ratio of net expenses to average net assets 0.46%(5) 0.45% 0.45% 0.46% 0.25%(3) Net investment income to average net assets 5.22% 3.77% 2.52% 3.19% 4.95%(3) (1)During each of the years in the five-year period ended December 31, 1995, the Investment Adviser reduced its fee and in certain years was allocated a portion of the operating expenses. Had such actions not been undertaken, net investment income per share and the ratios would have been as follows: Year Ended December 31, ____________________________________________________ 1995 1994 1993 1992 19912 - -------------------------------------------------------------------------------------------------------------------------------- Net investment income per share............ $0.05120 $0.03253 $0.01977 $0.02958 $0.02159 ========= ========= ========= ========= ========= Ratios (As a percentage of average net assets): Expenses................................ 0.65% 0.71% 0.97% 0.72% 0.97%(3) ========= ========= ========= ========= ========= Net investment income .................. 5.03% 3.51% 1.99% 2.93% 4.23%(3) ========= ========= ========= ========= ========= (2) For the period from the start of business, June 28, 1991, to December 31, 1991. (3) Annualized. (4)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the payable date. (5)Custodian fees were reduced by credits resulting from cash balances the Trust maintained with the Custodian. The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, in accordance with reporting regulations in effect beginning in 1995. If these credits were considered, the ratio of net expenses to average daily net assets would have been reduced to 0.45%.
The Fund's Investment Objective And Policies The Fund's objective is to provide as high a rate of current income as possible consistent with the preservation of capital and maintenance of liquidity. The Fund will pursue its objective by investing exclusively in securities of the U.S. Government and its agencies that are backed by the full faith and credit of the U.S. Government ("U.S. Government securities") and in repurchase agreements relating to such securities. At least 80% of the Fund's assets will be invested in direct obligations of the U.S. Treasury, including Treasury bills, notes and bonds, which differ only in their interest rates, maturities and times of issuance. Up to 20% of the Fund's net assets may be held in cash or invested in repurchase agreements. However, at the present time, the Fund intends to invest only in U.S. Treasury bills, notes and bonds and does not intend to invest in repurchase agreements. The investment objective of the Fund is not fundamental and may be changed by the Trustees of the Trust without a vote of the Fund's shareholders. Any such change of the investment objective of the Fund will be preceded by thirty days advance notice to each shareholder of the Fund. If any changes were made, the Fund might have investment objectives different from the objectives which an investor considered appropriate at the time the investor became a shareholder in the Fund. The Fund will limit its portfolio to investments maturing in 13 months or less and maintain a weighted average maturity of not more than 90 days. The Fund will seek to maintain a net asset value of $1.00 per share, but there is no assurance that the Fund will be able to do so. The yield of the Fund will fluctuate in response to changes in market conditions and interest rates. The Fund will limit its investments to legal investments and investment practices for federal credit unions as set forth in the Federal Credit Union Act and the National Credit Union Administration Regulations. The Fund will provide all federal credit union shareholders of record with sixty (60) days' written notice prior to changing such investment policy. The Fund is not intended to be a complete investment program, and the prospective investor should take into account his or her objectives and other investments when considering the purchase of Fund shares. The Fund cannot eliminate risk or assure achievement of its objective. Other Investment Policies The Trust has adopted certain fundamental investment restrictions on behalf of the Fund which are enumerated in detail in the Statement of Additional Information and which may be changed only by the vote of a majority of the Fund's outstanding voting securities. Among these restrictions, the Fund may not borrow money in excess of 1/3 of the current market value of its net assets (excluding the amount borrowed), invest more than 5% of the Fund's total assets taken at current market value in the securities of any one issuer, purchase more than 10% of the voting securities of any one issuer or invest 25% or more of the Fund's total assets in the securities of issuers in the same industry. There is, however, no limitation on investments in U.S. Government securities. The Fund may not invest more than 10% of its net assets in illiquid investments. The Fund has no current intention of borrowing for leverage or speculative purposes during the current fiscal year ending December 31, 1996. The Fund may not invest more than 5% of its total assets (taken at amortized cost) in securities issued by any one issuer or more than 10% of its total assets in securities subject to puts from or issued by any one issuer (except U.S. Government securities and repurchase agreements collateralized by such securities). However, a single investment may exceed such limit if such security (i) is rated in the highest rating category of the requisite number of nationally recognized statistical rating organizations or, if unrated, is determined to be of comparable quality and (ii) is held for not more than three business days. In addition, the Fund may not invest more than 5% of its total assets (taken at amortized cost) in securities of issuers not in such highest rating category or, if unrated, of comparable quality. An investment in any one such issuer is limited to no more than 1% of such total assets or $1 million, whichever is greater. Repurchase Agreements. The Fund may enter into repurchase agreements to the extent permitted by its investment policies. A repurchase agreement is an agreement under which the seller of securities agrees to repurchase and the Fund agrees to resell the securities at a specified time and price. A Fund may enter into repurchase agreements only with large, well-capitalized banks or government securities dealers that meet Wright credit standards. In addition, such repurchase agreements will provide that the value of the collateral underlying the repurchase agreement will always be at least equal to the repurchase price, including any accrued interest earned under the repurchase agreement. In the event of a default or bankruptcy by a seller under a repurchase agreement, the Fund will seek to liquidate such collateral. However, the exercise of the right to liquidate such collateral could involve certain costs, delays and restrictions and is not ultimately assured. To the extent that proceeds from any sale upon a default of the obligation to repurchase are less than the repurchase price, the Fund could suffer a loss. Forward Commitments And When-Issued Securities. The Fund may purchase when-issued securities and make contracts to purchase or sell securities for a fixed price at a future date beyond customary settlement time. The Fund is required to hold and maintain in a segregated account with the Fund's custodian or subcustodian until the settlement date, cash or other high-quality liquid debt obligations in an amount sufficient to meet the purchase price. Alternatively, the Fund may enter into offsetting contracts for the forward sale of other securities that it owns. Securities purchased or sold on a when-issued or forward commitment basis involve a risk of loss if the value of the security to be purchased declines prior to the settlement date or if the value of the security to be sold increases prior to the settlement date. Although the Fund would generally purchase securities on a when-issued or forward commitment basis with the intention of acquiring securities for its portfolio, the Fund may dispose of a when-issued security or forward commitment prior to settlement if the Investment Adviser deems it appropriate to do so. The Investment Adviser The Fund has engaged The Winthrop Corporation ("Winthrop"), to act as its investment adviser pursuant to its Investment Advisory Contract. Pursuant to a service agreement effective February 1, 1996 between Winthrop and its wholly-owned subsidiary, Wright Investors' Service, Inc. ("Wright), Wright, acting under the general supervision of the Trust's Trustees, furnishes the Fund with investment advice and management services. Winthrop supervises Wright's performance of this function and retains its contractual obligations under its Investment Advisory Contract with the Fund. The address of both Winthrop and Wright is 1000 Lafayette Boulevard, Bridgeport, Connecticut. The Trustees of the Trust are responsible for the general oversight of the conduct of the Fund's business. Wright is a leading independent international investment management and advisory firm which, together with its parent, Winthrop, has more than 30 years' experience. Its staff of over 150 people includes a highly respected team of 65 economists, investment experts and research analysts. Wright manages assets for bank trust departments, corporations, unions, municipalities, eleemosynary institutions, professional associations, institutional investors, fiduciary organizations, family trusts and individuals as well as mutual funds. Wright operates one of the world's largest and most complete databases of financial information on 13,000 domestic and international corporations. The estate of John Winthrop Wright is the controlling shareholder of Winthrop. At the end of 1995, Wright managed approximately $4 billion of assets. Under the Fund's Investment Advisory Contract, the Fund is required to pay Winthrop a monthly advisory fee at the annual rates (as a percentage of average daily net assets) set forth in the following table. Effective February 1, 1996, Winthrop will cause the Fund to pay to Wright the entire amount of the advisory fee payable by the Fund under its Investment Advisory Contract with Winthrop. As of December 31, 1995, the net assets of the Fund were $45,888,947. For the fiscal year ended December 31, 1995, the Fund would have paid an advisory fee equivalent to 0.35%. To enhance the net income of the Fund, Wright made a reduction of the advisory fee in the amount of $87,656 or from 0.35% to 0.16%. ANNUAL % ADVISORY FEE RATES Under $100 Million to Over $100 Million $500 Million $500 Million --------------------------------------------- 0.35% 0.32% 0.30% Shareholders of the Fund who are also advisory clients of Wright may have agreed to pay Wright a fee for such advisory services. Wright does not intend to exclude from the calculation of the investment advisory fees payable to Wright by such advisory clients the portion of the advisory fee payable by the Fund. Accordingly, a client may pay an advisory fee to Wright in accordance with Wright's customary investment advisory fee schedule charged to investment advisory clients and at the same time, as a shareholder in the Fund, bear its share of the advisory fee paid by the Fund to Wright as described above. Pursuant to the Investment Advisory Contract, Wright also furnishes for the use of the Fund office space and all necessary office facilities, equipment and personnel for servicing the investments of the Fund. The Fund is responsible for the payment of all expenses relating to its operations other than those expressly stated to be payable by Wright under its Investment Advisory Contract. Wright places the portfolio security transactions for the Fund, which in some cases may be effected in block transactions which include other accounts managed by Wright. Wright provides similar services directly for bank trust departments. Wright seeks to execute the Fund's portfolio security transactions on the most favorable terms and in the most effective manner possible. Subject to the foregoing, Wright may consider sales of shares of the Fund or of other investment companies sponsored by Wright as a factor in the selection of broker-dealer firms to execute such transactions. Wright is also the investment adviser to the other Funds in The Wright Managed Income Trust, The Wright Managed Equity Trust, The Wright Managed Blue Chip Series Trust and The Wright EquiFund Equity Trust (the "Wright Funds"). The Trust on behalf of the Fund has also entered into a Distribution Contract with Wright Investors' Service Distributors, Inc. ("WISDI" or the "Principal Underwriter"), a wholly-owned subsidiary of Winthrop. The Fund does not pay WISDI any compensation under its Distribution Contract. The Administrator The Trust engages Eaton Vance as administrator under an Administration Agreement for the Fund. Under the Administration Agreement, Eaton Vance is responsible for managing the legal and business affairs of the Fund, subject to the supervision of the Trust's Trustees. Eaton Vance's services include recordkeeping, preparation and filing of documents required to comply with federal and state securities laws, supervising the activities of the Fund's custodian and transfer agent, providing assistance in connection with the Trustees' and shareholders' meetings and other administrative services necessary to conduct the Fund's business. Eaton Vance will not provide any investment management or advisory services to the Fund. For its services under the Administration Agreement, Eaton Vance receives a monthly administration fee at the annual rates (as a percentage of average daily net assets) set forth in the following table. ANNUAL % ADMINISTRATION FEE RATES $100 Million Fee Rate Paid Under to Over for the Fiscal Year $100 Million $500 Million $500 Million Ended 12/31/95 --------------------------------------------------------- 0.07% 0.03% 0.02% 0.07% Eaton Vance, its affiliates and its predecessor companies have been primarily engaged in managing assets of individuals and institutional clients since 1924 and managing, administering and marketing mutual funds since 1931. Total assets under management are over $16 billion. Eaton Vance is a wholly-owned subsidiary of Eaton Vance Corp. ("EVC"), a publicly held holding company. How the Fund Values its Shares The net asset value per share of the Fund is computed three times on each day the New York Stock Exchange (the "Exchange") is open, at noon, at 3:00 p.m. and as of the close of regular trading on the Exchange - normally 4:00 p.m. New York time. The net asset value is determined by the Fund's custodian (as agent for the Fund) in the manner authorized by the Trustees of the Trust. The Trustees of the Trust have determined that it is in the best interests of the Fund and its shareholders to maintain a stable price of $1.00 per share by valuing portfolio securities by the amortized cost method in accordance with a rule of the Securities and Exchange Commission. How to Buy Shares Shares of the Fund are sold without a sales charge at the net asset value next determined after the receipt of a purchase order as described below. Shares purchased before 3:00 p.m. will earn interest for that day. Shares purchased between 3:00 p.m. and 4:00 p.m. will start to earn interest the next business day. The minimum initial investment is $1,000. There is no minimum amount required for subsequent purchases. The $1,000 minimum initial investment is waived for Bank Draft Investing accounts, which may be established with an investment of $50 or more with a minimum of $50 applicable to each subsequent investment. The Fund reserves the right to reject any order for the purchase of its shares or to limit or suspend, without prior notice, the offering of its shares. By Wire: Investors may purchase shares by transmitting immediately available funds (Federal Funds) by wire to: Boston Safe Deposit and Trust Company One Boston Place Boston, MA ABA: 011001234 Account 081345 Further Credit: Wright U.S. Treasury Money Market Fund (Include your Fund account number) Initial purchase - Upon making an initial investment by wire, an investor must first telephone the Fund's Order Department at (800) 225-6265, ext. 3, to advise of the action and to be assigned an account number. If this telephone call is not made, it may not be possible to process the order promptly. In addition, an Account Instructions form, which is available through WISDI, should be promptly forwarded to First Data Investor Services Group (the "Transfer Agent") at the following address: Wright Managed Investment Funds BOS725 P.O. Box 1559 Boston, Massachusetts 02104 Subsequent Purchases - Additional investments may be made at any time through the wire procedure described above. The Fund's Order Department must be immediately advised by telephone at (800) 225-6265, ext. 3, of each transmission of funds by wire. By Mail: Initial Purchases - The Account Instructions form available through WISDI should be completed by an investor, signed and mailed with a check, Federal Reserve Draft, or other negotiable bank draft, drawn on a U.S. bank and payable in U.S. dollars, to the order of the Wright U.S. Treasury Money Market Fund, and mailed to the Transfer Agent at the above address. Subsequent Purchases - Additional purchases may be made at any time by an investor by check, Federal Reserve draft, or other negotiable bank draft, drawn on a U.S. bank and payable in U.S. dollars, to the order of the Fund at the above address. The sub-account, if any, to which the subsequent purchase is to be credited should be identified together with the sub-account number and, unless otherwise agreed, the name of the sub-account. Bank Draft Investing - for regular share accumulation: Cash investments of $50 or more may be made through the shareholder's checking account via bank draft each month or quarter. The $1,000 minimum initial investment and small account redemption policy are waived for Bank Draft Investing accounts. Transactions in money market instruments normally require immediate settlement in Federal Funds. Accordingly, purchase orders will be executed at the net asset value next determined (see "How the Fund Values Its Shares") after their receipt by the Fund only if the Fund has received payment in cash or in Federal Funds. If remitted in other than the foregoing manner, such as by money order or personal check, purchase orders will be executed as of the close of business on the second Boston business day after receipt. Information on how to procure a Federal Reserve Draft or to transmit Federal Funds by wire is available at banks. A bank may charge for these services. How Shareholder Accounts are Maintained Upon the initial purchase of Fund shares, an account will be opened for the account of the investor or sub-account of an investor. Subsequent investments may be made at any time by mail to the Transfer Agent or by wire, as noted above. Distributions paid in additional shares are credited to Fund accounts monthly. Confirmation statements indicating total shares of the Fund owned in the account or each sub-account will be mailed to shareholders quarterly and at the time of each purchase or redemption. The issuance of shares will be recorded on the books of the Fund. The Trust does not issue share certificates. Distributions by the Fund Any net income earned by the Fund will be declared daily as a dividend to shareholders of record at the time of declaration. Such dividends will be paid on the last business day of each month and will be reinvested in additional shares of the Fund unless the shareholder elects to receive the dividends in cash. Net income will consist of interest accrued and discount earned, if any, less any accrued estimated expenses subsequent to the prior calculation of net income, if any, on the assets of the Fund. Distributions of net short-term capital gains, if any, will be made at least annually shortly before or after the close of the Fund's fiscal year. Taxes The Fund is treated as a separate entity for federal income tax purposes under the Internal Revenue Code of 1986, as amended (the "Code"). The Fund has qualified and elected to be treated as a regulated investment company under the Code and intends to continue to qualify as such. In order to so qualify, the Fund must meet certain requirements with respect to sources of income, diversification of assets, and distributions to shareholders. The Fund does not pay federal income or excise taxes to the extent that it distributes to its shareholders all of its net investment income and net realized capital gains in accordance with the timing requirements of the Code and will not be subject to income, corporate excise or franchise taxation in Massachusetts as long as it qualifies as a regulated investment company under the Code. For federal income tax purposes, distributions from the Fund's net investment income and net short-term capital gains are taxable as ordinary income, whether received in cash or reinvested in additional shares. Distributions from net long-term capital gains, if any, will be treated as long-term capital gains, whether paid in cash or reinvested in additional shares. Since none of the Fund's income will be derived from dividends, no portion of the dividends paid by the Fund will be eligible for the dividends received deduction for corporations. In order to avoid federal excise tax, the Code requires that the Fund distribute (or be deemed to have distributed) by December 31 of each calendar year at least 98% of its ordinary income for such year, at least 98% of the excess of its realized capital gains over its realized capital losses for the one-year period ending on October 31of such year, after reduction by any available capital loss carryforwards, and 100% of any income or capital gain from the prior year (as previously computed) that was not paid out during such year and on which the Fund paid no federal income tax. Annually, shareholders of the Fund that are not exempt from information reporting requirements will receive information on Form 1099 to assist in reporting the prior calendar year's distributions and redemptions (including exchanges) on federal and state income tax returns. Dividends declared by the Fund in October, November or December of any calendar year to shareholders of record as of a date in such a month and paid the following January will be treated for federal income tax purposes as having been received by shareholders on December 31 of the year in which they are declared. Under Section 3406 of the Code, individuals and other nonexempt shareholders who have not provided the Fund their correct taxpayer identification numbers and certain certifications required by the IRS will be subject to backup withholding of 31% on distributions made by the Fund other than on proceeds of redemptions (including exchanges) of the Fund's shares. In addition, the Fund may be required to impose backup withholding if it is notified by the IRS or a broker that the taxpayer identification number is incorrect or that backup withholding applies because of underreporting of interest or dividend income. If such withholding is applicable, such distributions will be reduced by the amount of tax required to be withheld. Shareholders who are not United States persons should also consult their tax advisers as to the potential application of certain U.S. taxes, including a U.S. withholding tax at the rate of 30% (or at a lower treaty rate) on amounts treated as ordinary income distributions to them, and of foreign taxes to their investment in the Fund. Special tax rules apply to IRA accounts (including penalties on certain distributions and other transactions) and to other special classes of investors, such as tax-exempt organizations, banks or insurance companies. Investors should consult their tax advisers for more information. Dividends and other distributions may, of course, also be subject to state and local taxes. A state income (and possibly local income and/or intangible property) tax exemption is generally available to the extent the Fund's distributions are derived from interest on (or, in the case of intangible property taxes, the value of its assets is attributable to) certain U.S. Government obligations, including direct obligations of the U.S. Treasury, provided in some states that certain thresholds for holdings of such obligations and/or reporting requirements are satisfied. Shareholders should consult their own tax advisers with respect to the tax status of distributions from the Fund or redemption or exchange of Fund shares in their own states and localities. How to Exchange Shares Shares of the Fund may be exchanged for shares of the other funds in The Wright Managed Income Trust, The Wright Managed Equity Trust or The Wright EquiFund Equity Trust at net asset value at the time of the exchange. This exchange offer is available only in states where shares of such other fund may be legally sold. Each exchange is subject to the applicable minimum initial investment of $1,000 in the Fund. The prospectus of each fund describes its investment objectives and policies and shareholders should obtain a prospectus and consider these objectives and policies carefully before requesting an exchange. Shareholders purchasing shares from an Authorized Dealer may effect exchanges between the above funds through their Authorized Dealer who will transmit information regarding the requested exchanges to the Transfer Agent. First Data Investor Services Group makes exchanges at the next determined net asset value after receiving a request in writing mailed to the address provided under "How To Buy Shares." Telephone exchanges are also accepted if the exchange involves shares valued at less than $50,000 and on deposit with First Data Investor Services Group and the investor has not disclaimed in writing the use of the privilege. To effect such exchanges, call First Data Investor Services Group at (800) 262-1122 or within Massachusetts, (617) 573-9403, Monday through Friday, 9:00 a.m. to 4:00 p.m. (Eastern time). All such telephone exchanges must be registered in the same name(s) and with the same address and social security or other taxpayer identification number as are registered with the fund from which the exchange is being made. Neither the Trust, the Principal Underwriter nor First Data Investor Services Group will be responsible for the authenticity of exchange instructions received by telephone, provided that reasonable procedures have been followed to confirm that instructions communicated are genuine, and if such procedures are not followed, the Trust, the Fund, the Principal Underwriter or First Data Investor Services Group may be liable for any losses due to unauthorized or fraudulent telephone instructions. Telephone instructions will be tape recorded. In times of drastic economic or market changes, the telephone exchange privilege may be difficult to implement. When calling to make a telephone exchange, shareholders should have available their account number and social security or other taxpayer identification numbers. Additional documentation may be required for written exchange requests if shares are registered in the name of a corporation, partnership or fiduciary. Any exchange request may be rejected by a Fund or the Principal Underwriter at its discretion. The exchange privilege may be changed or discontinued without penalty at any time. Shareholders will be given sixty (60) days' notice prior to any termination or material amendment of the exchange privilege. Contact the Transfer Agent, First Data Investor Services Group, for additional information concerning the exchange privilege. Shareholders should be aware that for federal and state income tax purposes, an exchange is a sale, but it generally will not result in a gain or loss provided that the Fund has maintained a constant net asset value. How to Redeem or Sell Shares Shares of the Fund will be redeemed at the net asset value next determined after receipt of a redemption request in good order as described below. Proceeds will be mailed within seven days of such receipt. However, at various times the Fund may be requested to redeem shares for which it has not yet received good payment. If the shares to be redeemed represent an investment made by check, the Fund may delay payment of redemption proceeds until the check has been collected which, depending upon the location of the issuing bank, could take up to 15 days. For federal and state income tax purposes, a redemption of shares is a taxable transaction, but it generally will not result in recognition of a gain or loss provided that the Fund has maintained a constant net asset value. Through Authorized Dealers: Shareholders using Authorized Dealers may redeem shares through such Dealers. By Telephone: All shareholders are automatically eligible for the telephone redemption privilege, unless the account application indicates otherwise. Shareholders may effect a redemption by calling the Fund's Order Department at (800) 225-6265 (8:30 a.m. to 4:00 p.m. Eastern time). In times when the volume of telephone redemptions is heavy, additional phone lines will automatically be added by the Fund. However, in times of drastic economic or market changes, a telephone redemption may be difficult to implement. When calling to make a telephone redemption, shareholders should have available their account number. If the redemption request is received before 3:00 p.m., the proceeds will be wired the same day to the shareholder's account, and the shares redeemed will not be entitled to that day's dividend. A daily dividend will be paid on shares redeemed if the redemption request is received after 3:00 p.m. However, the proceeds are not wired until the following business day. Trust Departments may make redemptions and deposit the proceeds in checking or other accounts of clients, as specified in instructions furnished to the Fund at the time of initially purchasing Fund shares. Neither the Trust, the Principal Underwriter nor First Data Investor Services Group will be responsible for the authenticity of redemption instructions received by telephone, provided that reasonable procedures have been followed to confirm that instructions communicated are genuine, and if such procedures are not followed, the Trust, the Fund, the Principal Underwriter or First Data Investor Services Group may be liable for any losses due to unauthorized or fraudulent telephone instructions. Also, shareholders may effect a redemption by calling the Funds' Transfer Agent, First Data Investor Services Group, at (800) 262-1122 (8:30 a.m. to 4:00 p.m. Eastern time) if the redemption involves shares valued at less than $50,000 and on deposit with First Data Investor Services Group. Payment will be made by check to the address of record. Telephone instructions will be tape recorded. By Mail: A shareholder may also redeem all or any number of shares at any time by mail by delivering the request with a stock power to the Transfer Agent, First Data Investor Services Group, Wright Managed Investment Funds, BOS725, P.O. Box 1559, Boston, Massachusetts 02104. As in the case of telephone requests, payments will normally be made within one business day after receipt of the redemption request in good order. Good order means that written redemption requests or stock powers must be endorsed by the record owner(s) exactly as the shares are registered and the signature(s) must be guaranteed by a member of either the Securities Transfer Association's STAMP program or the New York Stock Exchange's Medallion Signature Program, or certain banks, savings and loan institutions, credit unions, securities dealers, securities exchanges, clearing agencies and registered securities associations as required by a regulation of the Securities and Exchange Commission and acceptable to First Data Investor Services Group. In addition, in some cases, good order may require the furnishing of additional documents, such as where shares are registered in the name of a corporation, partnership or fiduciary. By Check: Shareholders of the Fund may appoint Boston Safe Deposit & Trust Company ("Boston Safe") their agent and may request that Boston Safe provide them with special forms of checks drawn on Boston Safe. These checks may be made payable by the shareholder to the order of any person in any amount of $500 or more. When a check is presented to Boston Safe for payment, the number of full and fractional shares required to cover the amount of the check will be redeemed from the shareholder's account by Boston Safe as the shareholder's agent. Through this procedure the shareholder will continue to be entitled to distributions paid on his shares up to the time the check is presented to Boston Safe for payment. If the amount of the check is greater than the value of the shares held in the shareholder's account, for which the Fund has collected payment, the check will be returned and the shareholder may be subject to extra charges. Forms required to set up this service may be obtained from the Principal Underwriter. Shareholders will be required to execute signature cards and will be subject to Boston Safe's rules and regulations governing such checking accounts. There is no charge to shareholders for this service. This service may be terminated or suspended at any time by the Fund or Boston Safe. The right to redeem shares of the Fund and to receive payment therefor may be suspended at times (a) when the securities markets are closed, other than customary weekend and holiday closings, (b) when trading is restricted for any reason, (c) when an emergency exists as a result of which disposal by the Fund of securities owned by it is not reasonably practicable or it is not reasonably practicable for the Fund fairly to determine the value of its net assets, or (d) when the Securities and Exchange Commission by order permits a suspension of the right of redemption or a postponement of the date of payment or redemption. Although the Fund normally intends to redeem shares in cash, the Fund, subject to compliance with applicable regulations, reserves the right to deliver the proceeds of redemptions in the form of portfolio securities if deemed advisable by the Trustees of the Trust. The value of any such portfolio securities distributed will be determined in the manner as described under "How the Fund Values its Shares." If the amount of the Fund's shares to be redeemed for a shareholder within a 90-day period exceeds the lesser of $250,000 or 1% of the aggregate net asset value of the Fund at the beginning of such period, the Fund reserves the right to deliver all or any part of such excess in the form of portfolio securities. If portfolio securities were distributed in lieu of cash, the shareholder would normally incur transaction costs upon the disposition of any such securities. Due to the relatively high cost of maintaining small accounts, the Fund reserves the right to redeem fully at net asset value any account (including accounts of clients of Institutional Investors) which at any time, due to redemption or transfer, amounts to less than $1,000 for the Fund; any shareholder who makes a partial redemption which reduces his account to less than $1,000 would be subject to the Fund's right to redeem such account. Prior to the execution of any such redemption, notice will be sent and the shareholder will be allowed 60 days from the date of notice to make an additional investment to meet the required minimum of $1,000. Thus, an investor making an initial investment of $1,000 would not be able to redeem shares without being subject to this policy. Performance Information From time to time, quotations of the Fund's yield and effective yield may be included in advertisements and communications to shareholders. Both yield figures are based on historical earnings and are not intended to indicate future performance. The yield of the Fund refers to the net income generated by an investment in the Fund over a specified seven-day period. This income is then annualized. That is, the amount of income generated by the investment during that week is assumed to be generated each week over a 52-week period and is shown as a percentage of the investment. The effective yield is expressed similarly but, when annualized, the income earned by an investment in the Fund is assumed to be reinvested. The effective yield will be slightly higher than the yield because of the compounding effect of this assumed reinvestment. Yield and effective yield for the Fund will vary based on changes in market conditions, the level of interest rates and the level of the Fund's expenses. Investors should note that the investment results of the Fund will fluctuate over time, and any presentation of the Fund's yield or effective yield for any prior period should not be considered as a representation of what an investment may earn or what an investor's yield or effective yield may be in any future period. If the expenses of the Fund were reduced by Wright, the Fund's performance would be higher. Other Information The Trust is a business trust established under Massachusetts law and is a no-load, open-end management investment company. The Trust was established pursuant to a Declaration of Trust dated February 17, 1983, as amended. The Trust's shares of beneficial interest have no par value. Shares of the Trust may be issued in two or more series or "Funds". The Trust currently has, in addition to the Fund, four other Funds, which are offered under a separate prospectus. Each Fund's shares may be issued in an unlimited number by the Trustees of the Trust. Each share of a Fund represents an equal proportionate beneficial interest in that Fund and, when issued and outstanding, the shares are fully paid and non-assessable by the Trust. Shareholders are entitled to one vote for each full share held. Fractional shares may be voted in proportion to the amount of the net asset value of a Fund which they represent. Voting rights are not cumulative, which means that the holders of more than 50% of the shares voting for the election of Trustees of a Trust can elect 100% of the Trustees and, in such event, the holders of the remaining less than 50% of the shares voting on the matter will not be able to elect any Trustees. Shares have no preemptive or conversion rights and are freely transferable. Upon liquidation of a Fund, shareholders are entitled to share pro rata in the net assets of the particular Fund available for distribution to shareholders, and in any general assets of the relevant Trust not allocated to a particular Fund by the Trustees. As permitted by Massachusetts law, there will normally be no meetings of shareholders for the purpose of electing Trustees unless and until such time as less than a majority of the Trustees holding office have been elected by shareholders. In such an event the Trustees then in office will call a shareholders' meeting for the election of Trustees. Except for the foregoing circumstances and unless removed by action of the shareholders in accordance with each Trust's by-laws, the Trustees shall continue to hold office and may appoint successor Trustees. The Trust's by-laws provide that no person shall serve as a Trustee if shareholders holding two-thirds of the out- standing shares have removed such person from that office either by a written declaration filed with the Trust's custodian or by votes cast at a meeting called for that purpose. The Trustees shall promptly call a meeting of the shareholders for the purpose of voting upon a question of removal of a Trustee when requested so to do by the record holders of not less than 10 per centum of the outstanding shares. Tax-Sheltered Retirement Plans The Fund is available for investment by individual retirement account plans for individuals and their non-employed spouses, pension and profit sharing plans for self-employed individuals, corporations and non-profit organizations, or 401(k) tax-sheltered retirement plans. For more information, write to: Wright Investors' Service Distributors, Inc. 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 or call: (800) 888-9471 STATEMENT OF ADDITIONAL INFORMATION May 1, 1996 - ------------------------------------------------------------------------------- Wright U.S. Treasury Money Market Fund 24 Federal Street Boston, Massachusetts 02110 - ------------------------------------------------------------------------------- Table of Contents Page Additional Information about the Trust.......................... 2 Additional Investment Information............................... 2 Officers and Trustees........................................... 4 Control Persons and Principal Holders of Shares................. 7 Investment Advisory and Administrative Services................. 7 Custodian....................................................... 9 Independent Certified Public Accountants........................ 9 Brokerage Allocation............................................ 9 Pricing of Shares............................................... 10 Principal Underwriter........................................... 11 Calculation of Yield Quotations................................. 11 Financial Statements............................................ 13 This Statement of Additional Information is NOT a prospectus and is authorized for distribution to prospective investors only if preceded or accompanied by the current Prospectus of the Wright U.S. Treasury Money Market Fund, a series of The Wright Managed Income Trust (the "Trust"), dated May 1, 1996, as supplemented from time to time, which is incorporated herein by reference. A copy of the Prospectus may be obtained without charge from Wright Investors' Service Distributors, Inc., 1000 Lafayette Boulevard, Bridgeport, Connecticut 06604 (Telephone: (800) 888-9471). Additional Information about the Trust Unless otherwise defined herein, capitalized terms have the meaning given to them in the Prospectus. The Trust was established pursuant to a Declaration of Trust dated February 17, 1983, as amended and restated, and further amended March 28, 1991 to change the name from "The Wright Managed Bond Trust" to "The Wright Managed Income Trust." The Trust's Declaration of Trust may be amended with the affirmative vote of a majority of the outstanding shares of such Trust or, if the interests of a particular Fund are affected, a majority of such Fund's outstanding shares. The Trustees are authorized to make amendments to a Declaration of Trust that do not have a material adverse effect on the interests of shareholders. The Trust may be terminated (i) upon the sale of the Trust's assets to another diversified open-end management investment company, if approved by the holders of two-thirds of the outstanding shares of the Trust, except that if the Trustees recommend such sale of assets, the approval by the vote of a majority of the outstanding shares will be sufficient, or (ii) upon liquidation and distribution of the assets of the Trust, if approved by a majority of its Trustees or by the vote of a majority of the Trust's outstanding shares. If not so terminated, the Trust may continue indefinitely. The Trust's Declaration of Trust further provides that the Trust's Trustees will not be liable for errors of judgment or mistakes of fact or law; however, nothing in the Declaration of Trust protects a Trustee against any liability to which he would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties involved in the conduct of his office. The Trust is an organization of the type commonly known as a "Massachusetts business trust." Under Massachusetts law, shareholders of such a trust may, under certain circumstances, be held personally liable as partners for the obligations of the trust. The Trust's Declaration of Trust contains an express disclaimer of shareholder liability in connection with the Trust's property or the acts, obligations or affairs of the Trust. The Declaration of Trust also provides for indemnification out of the Trust's property of any shareholder held personally liable for the claims and liabilities to which a shareholder may become subject by reason of being or having been a shareholder. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which the Trust itself would be unable to meet its obligations. The Trust has been advised by its counsel that the risk of any shareholder incurring any liability for the obligations of the Trust is extremely remote. Additional Investment Information Repurchase Agreements -- involve purchase of debt securities of the U.S. Treasury or a federal agency or federal instrumentality. At the same time a Fund purchases the security it resells it to the vendor (a member bank of the Federal Reserve System or recognized securities dealer), and is obligated to redeliver the security to the vendor on an agreed-upon date in the future. The resale price is in excess of the purchase price and reflects an agreed-upon market rate unrelated to the coupon rate on the purchased security. Such transactions afford an opportunity for the Fund to earn a return on cash which is only temporarily available. The Fund's risk is the ability of the vendor to pay an agreed-upon sum upon the delivery date, and the Trust believes the risk is limited to the difference between the market value of the security and the repurchase price provided for in the repurchase agreement. However, bankruptcy or insolvency proceedings affecting the vendor of the security which is subject to the repurchase agreement, prior to the repurchase, may result in a delay in the Fund being able to resell the security. In all cases when entering into repurchase agreements with other than FDIC-insured depository institutions, the Fund will take physical possession of the underlying collateral security, or will receive written confirmation of the purchase of the collateral security and a custodial or safekeeping receipt from a third party under a written bailment for hire contract, or will be the recorded owner of the collateral security through the Federal Reserve Book-Entry System. "When-Issued" Securities -- U.S. Government obligations are frequently offered on a "when-issued" basis. When so offered, the price, which is generally expressed in terms of yield to maturity, is fixed at the time the commitment to purchase is made, but delivery and payment for the when-issued securities may take place at a later date. Normally, the settlement date occurs 15 to 90 days after the date of the transaction. The payment obligation and the interest rate that will be received on the securities are fixed at the time the Fund enters into the purchase commitment. During the period between purchase and settlement, no payment is made by the Fund to the issuer and no interest accrues to the Fund. To the extent that assets of the Fund are held in cash pending the settlement of a purchase of securities, the Fund would earn no income; however, the Fund intends to be fully invested to the extent practicable and subject to the policies stated above. While when-issued securities may be sold prior to the settlement date, it is intended that such securities will be purchased for the Fund with the purpose of actually acquiring them unless a sale appears to be desirable for investment reasons. At the time a commitment to purchase securities on a when-issued basis is made for the Fund, the transaction will be recorded and the value of the security reflected in determining the Fund's net asset value. The Trust will establish a segregated account in which the Fund will maintain cash and liquid, high-grade debt securities equal in value to commitments for when-issued securities. If the value of the securities placed in the separate account declines, additional cash or securities will be placed in the account on a daily basis so that the value of the account will at least equal the amount of the Fund's when-issued commitments. Securities purchased on a when-issued basis and the securities held by the Fund are subject to changes in value based upon the public's perception of the credit worthiness of the issuer and changes in the level of interest rates (which will generally result in both changing in value in the same way, i.e., both experiencing appreciation when interest rates decline and depreciation when interest rates rise). Therefore, to the extent that the Fund remains substantially fully invested at the same time that it has purchased securities on a when-issued basis, there will be greater fluctuations in the market value of the Fund assets than if cash were solely set aside to pay for when-issued securities. Investment Restrictions - The following investment restrictions have been adopted by the Trust on behalf of the Fund and may be changed only by the vote of a majority of the Fund's outstanding voting securities, which as used in this Statement of Additional Information means the lesser of (a) 67% of the shares of the Fund if the holders of more than 50% of the shares are present or represented at the meeting or (b) more than 50% of the shares of the Fund. Accordingly, the Fund may not: (1) Borrow money in excess of 1/3 of the current market value of the net assets of the Fund (excluding the amount borrowed) and then only if such borrowing, including reverse repurchase agreements, is incurred as a temporary measure for extraordinary or emergency purposes or to facilitate the orderly sale of portfolio securities to accommodate redemption requests; or issue any securities of the Fund other than its shares of beneficial interest except as appropriate to evidence indebtedness which the Fund is permitted to incur. (The Trust anticipates paying interest on borrowed money at rates comparable to the Fund's yield and the Trust has no intention of attempting to increase the Fund's net income by means of borrowing); (2) Pledge, mortgage or hypothecate the assets of the Fund to an extent greater than 1/3 of the total assets of the Fund taken at market; (3) Invest more than 5% of the Fund's total assets taken at current market value in the securities of any one issuer (other than securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities) or purchase more than 10% of the voting securities of any one issuer; (4) Purchase or retain securities of any issuer if 5% of the issuer's securities are owned by those officers and Trustees of the Trust or its manager, investment adviser or administrator who own individually more than 1/2 of 1% of the issuer's securities; (5) Purchase securities on margin, make short sales except sales against the box, write or purchase or sell any put options, or purchase warrants; (6) Buy or sell real estate unless acquired as a result of ownership of securities; (7) Purchase any securities which would cause 25% or more of the market value of the Fund's total assets at the time of such purchase to be invested in the securities of issuers having their principal business activities in the same industry, provided that there is no limitation in respect to investments in securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities and utility companies, gas, electric, water and telephone companies are considered as separate industries; (8) Underwrite securities issued by other persons except insofar as the Trust may technically be deemed an underwriter under the Securities Act of 1933 in selling a portfolio security; (9) Make loans, except (i) through the loan of a portfolio security, (ii) by entering into repurchase agreements, and (iii) to the extent that the purchase of debt instruments in accordance with the Fund's investment objective and policies may be deemed to be loans; or (10) Purchase from or sell to any of the Trust's Trustees and officers, its manager, administrator, or investment adviser, its principal underwriter, if any, or the officers and directors of said manager, administrator, investment adviser or principal underwriter, portfolio securities of the Fund. In addition, while not a fundamental policy, the Fund will not enter into repurchase agreements maturing in more than 7 days or invest in illiquid securities if, as a result, more than 10% of the Fund's net assets would be invested in such repurchase agreements and illiquid securities. Officers and Trustees The officers and Trustees of the Trust are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Those Trustees who are "interested persons" (as defined in the 1940 Act) of the Trust, Wright, The Winthrop Corporation ("Winthrop"), Eaton Vance, Eaton Vance's wholly owned subsidiary, Boston Management and Research ("BMR") or Eaton Vance's parent company, Eaton Vance Corp. (`EVC'), or by Eaton Vance's and BMR's Trustee, Eaton Vance, Inc. ("EV") by virtue of their affiliation with either the Trust, Wright, Winthrop, Eaton Vance, BMR, EVC or EV, are indicated by an asterisk (*). PETER M. DONOVAN (53), President and Trustee* President, Chief Executive Officer and Director of Wright and Winthrop; Vice President, Treasurer and a Director of Wright Investors' Service Distributors, Inc. Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604 H. DAY BRIGHAM, JR. (69), Vice President, Secretary and Trustee* Vice President of Eaton Vance, BMR, EV and EVC and Director, EV and EVC; Director, Trustee and officer of various investment companies managed by Eaton Vance or BMR. Address: 24 Federal Street, Boston, MA 02110 WINTHROP S. EMMET (85), Trustee Retired New York City Attorney at Law; Trust Officer, First National City Bank, New York, NY (1963-1971). Address: Box 327, West Center Road, West Stockbridge, MA 01266 LELAND MILES (72), Trustee President Emeritus, University of Bridgeport (1987- present); President, University of Bridgeport (1974-1987); Director, United Illuminating Company. Address: Tide Mill Landing, 2425 Post Road, Suite 102, Southport, CT 06490 A. M. MOODY III (59), Vice President & Trustee* Senior Vice President, Wright and Winthrop; President, Wright Investors' Service Distributors, Inc. Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604 LLOYD F. PIERCE (77), Trustee Retired Vice Chairman (prior to 1984 - President), People's Bank, Bridgeport, CT; Member, Board of Trustees, People's Bank, Bridgeport, CT; Board of Directors, Southern Connecticut Gas Company; Chairman, Board of Directors, COSINE. Address: 125 Gull Circle North, Daytona Beach, FL 32119 GEORGE R. PREFER (61), Trustee Retired President and Chief Executive Officer, Muller Data Corp., New York, NY (1983-1986) (1989-1990); President and Chief Executive Officer, InvestData Corporation, A Mellon Financial Services Company (1986-1989). Address: 7738 Silver Bell Drive, Sarasota, FL 34241 RAYMOND VAN HOUTTE (71), Trustee President Emeritus and Counselor of The Tompkins County Trust Co., Ithaca, NY (since January 1989); President and Chief Executive Officer, The Tompkins County Trust Company (1973-1988); President, New York State Bankers Association (1987-1988); Director, McGraw Housing Company, Inc., Deanco, Inc., Evaported Metal Products and Ithaco, Inc. Address: One Strawberry Lane, Ithaca, NY 14850 JUDITH R. CORCHARD (57), Vice President Executive Vice President, Investment Management: Senior Investment Officer; Chairman of the Investment Committee and Director of Wright and Winthrop. Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604 JAMES L. O'CONNOR (51), Treasurer Vice President of Eaton Vance, BMR and EV. Officer of various investment companies managed by Eaton Vance or BMR. Address: 24 Federal Street, Boston, MA 02110 JANET E. SANDERS (60), Assistant Secretary & Assistant Treasurer Vice President of Eaton Vance, BMR and EV. Officer of various investment companies managed by Eaton Vance or BMR. Address: 24 Federal Street, Boston, MA 02110 WILLIAM J. AUSTIN, JR. (44), Assistant Treasurer Assistant Vice President of Eaton Vance, BMR and EV. Officer of various investment companies managed by Eaton Vance or BMR. Mr. Austin was elected Assistant Treasurer of the Trust on December 18, 1991. Address: 24 Federal Street, Boston, MA 02110 A. JOHN MURPHY (33), Assistant Secretary Assistant Vice President of Eaton Vance, BMR and EV since March 1, 1994; employee of Eaton Vance since March 1993. State Regulations Supervisor, The Boston Company (1991-1993) and Registration Specialist, Fidelity Management & Research Co. (1986-1991). Officer of various investment companies managed by Eaton Vance or BMR. Mr. Murphy was elected Assistant Secretary of the Trust on June 21, 1995. Address: 24 Federal Street, Boston, MA 02110 ERIC G. WOODBURY (38), Assistant Secretary Vice President of Eaton Vance, BMR and EV since February 1993; formerly, associate attorney at Dechert, Price & Rhoads and Gaston & Snow. Officer of various investment companies managed by Eaton Vance or BMR. Mr. Woodbury was elected Assistant Secretary of the Trust on June 21, 1995. Address: 24 Federal Street, Boston, MA 02110 All of the Trustees and officers hold identical positions with The Wright Managed Equity Trust, The Wright Managed Blue Chip Series Trust (except Mr. Miles) and The Wright EquiFund Equity Trust. The fees and expenses of those Trustees of the Trust (Messrs. Emmet, Miles, Pierce, Prefer and Van Houtte) who are not affiliated persons of the Trust are paid by the Fund and other series of the Trust. They also received additional payments from other investment companies for which Wright provides investment advisory services. The Trustees who are interested persons of the Trust receive no compensation from the Trust. The Trust does not have a retirement plan for its Trustees. For Trustee compensation for the fiscal year ended December 31, 1995, see the table below. Messrs. Emmet, Miles, Pierce, Prefer and Van Houtte are members of the Special Nominating Committee of the Trustees of the Trust. The Special Nominating Committee's function is selecting and nominating individuals to fill vacancies, as and when they occur, in the ranks of those Trustees who are not "interested persons" of the Trust, Eaton Vance, Wright and Winthrop. The Trust does not have a designated audit committee since the full Board performs the functions of such committee. COMPENSATION TABLE - Fiscal Year Ended December 31, 1995 Aggregate Compensation from Pension Benefits Estimated Total Compensation Trustees The Wright Managed Income Trust Accrued Annual Benefits Paid(1) - --------------------------------------------------------------------------------------------------------------------------------- Winthrop S. Emmet $1,250 None None $5,000 Leland Miles $1,250 None None $4,750 Lloyd F. Pierce $1,250 None None $5,000 George R. Prefer $1,250 None None $5,000 Raymond Van Houtte $1,250 None None $5,000 - --------------------------------------------------------------------------------------------------------------------------------- (1) Total compensation paid is from The Wright Managed Income Trust (6 funds) and the other boards in the Wright Fund complex (27 Funds) for a total of 33 Funds.
Control Persons and Principal Holders of Shares As of March 31, 1996, the Trustees and officers of the Trust, as a group, owned in the aggregate less than 1% of the outstanding shares of the Fund. The Fund's shares are held primarily by trust departments of depository institutions and trust companies either for their own account or for the accounts of their clients. From time to time several of these trust departments may be the record owners of 5% or more of the outstanding shares of the Fund. To date, the Fund's experience has been that such shareholders do not continuously hold in excess of 5% or more of the Fund's outstanding shares for extended periods of time. Should a shareholder continuously hold 5% or more of the Fund's outstanding shares for an extended period of time (a period in excess of a year), this would be disclosed by an amendment to this Statement of Additional Information showing such shareholder's name, address and percentage of ownership. Upon request, the Trust will provide shareholders with a list of all shareholders holding 5% or more of the Fund's outstanding shares as of a current date. As of March 31, 1996, the number of trust departments which were the record owners of more than 5% of the outstanding shares of the Fund was six. Investment Advisory and Administrative Services The Fund has engaged The Winthrop Corporation ("Winthrop"), to act as its investment adviser pursuant to its Investment Advisory Contract. Pursuant to a service agreement effective February 1, 1996 between Winthrop and its wholly-owned subsidiary, Wright Investors' Service, Inc. ("Wright"), Wright, acting under the general supervision of the Trust's Trustees, furnishes the Fund with investment advice and management services. Winthrop supervises Wright's performance of this function and retains its contractual obligations under its Investment Advisory Contract with the Fund. The estate of John Winthrop Wright may be considered a controlling person of Winthrop and Wright by reason of its ownership of 29% of the outstanding shares of Winthrop. The Trustees of the Trust are responsible for the general oversight of the conduct of the Fund's business. Pursuant to the Investment Advisory Contract, Wright will carry out the investment and reinvestment of the assets of the Fund, will furnish continuously an investment program with respect to the Fund, will determine which securities should be purchased, sold or exchanged, and will implement such determinations. Wright will furnish to the Fund investment advice and management services, office space, equipment and clerical personnel, and investment advisory, statistical and research facilities. In addition, Wright has arranged for certain members of the Eaton Vance and Wright organizations to serve without salary as officers or Trustees of the Trust. In return for these services, the Fund is obligated to pay a monthly advisory fee calculated at the rates set forth in the Fund's current Prospectus. Effective February 1, 1996, Winthrop will cause the Fund to pay to Wright the entire amount of the advisory fee payable by the Fund under its Investment Advisory Contract with Winthrop. As of December 31, 1995, the Fund had net assets of $45,888,947. For the fiscal year ended December 31, 1995, the Fund would have paid Winthrop advisory fees of $162,732 (equivalent to 0.35% of the average daily net assets for such year). To enhance the net income of the Fund, Winthrop made a reduction of its advisory fee in the amount of $87,656. For the fiscal year ended December 31, 1994, the Fund would have paid Winthrop advisory fees of $157,447. To enhance the net income of the Fund, Winthrop made a reduction of its advisory fee in the amount of $114,912. For the fiscal year ended December 31, 1993, the Fund would have paid Winthrop advisory fees of $42,817. To enhance the net income of the Fund, Winthrop made a reduction of the full amount of its advisory fee and Winthrop was allocated a portion of the expenses related to the operation of the Fund in the amount of $21,436. The Trust has engaged Eaton Vance to act as the administrator for the Fund pursuant to an Administration Agreement. For its services under the Administration Agreement, Eaton Vance receives a monthly administration fee at the annual rate set forth in the Fund's current Prospectus. For the fiscal years ended December 31, 1995, 1994 and 1993, the Fund paid Eaton Vance administration fees of $32,543, $31,490 and $8,585, respectively. Eaton Vance and EV are both wholly owned subsidiaries of EVC. BMR is a wholly owned subsidiary of Eaton Vance. Eaton Vance and BMR are Massachusetts business trusts, and EV is the trustee of Eaton Vance and BMR. The Directors of EV are Landon T. Clay, H. Day Brigham, Jr., M. Dozier Gardner, James B. Hawkes and Benjamin A. Rowland, Jr. The Directors of EVC consist of the same persons and John G. L. Cabot and Ralph Z. Sorenson. Mr. Clay is chairman, and Mr. Gardner is president and chief executive officer of EVC, Eaton Vance, BMR and EV. All of the issued and outstanding shares of Eaton Vance and of EV are owned by EVC. All of the issued and outstanding shares of BMR are owned by Eaton Vance. All shares of the outstanding Voting Common Stock of EVC are deposited in a Voting Trust which expires on December 31, 1996, the Voting Trustees of which are Messrs. Brigham, Clay, Gardner, Hawkes, and Rowland. The Voting Trustees have unrestricted voting rights for the election of Directors of EVC. All of the outstanding voting trust receipts issued under said Voting Trust are owned by certain of the officers of Eaton Vance and BMR who are also officers and Directors of EVC and EV. As of March 31, 1996, Messrs. Clay, Gardner and Hawkes each owned 24% of such voting trust receipts and Messrs. Rowland and Brigham owned 15% and 13%, respectively, of such voting trust receipts. Mr. Brigham is an officer and Trustee of the Trust and a member of the EVC, Eaton Vance, BMR and EV organizations. Messrs. Austin, Murphy, O'Connor and Woodbury and Ms. Sanders, who are officers of the Trust, are also members of the Eaton Vance, BMR and EV organizations. Eaton Vance will receive the fees paid under the Administration Agreements. EVC owns all of the stock of Energex Energy Corporation which is engaged in oil and gas exploration and development. In addition, Eaton Vance owns all the stock of Northeast Properties, Inc., which is engaged in real estate investment. EVC owns all of the stock of Fulcrum Management, Inc. and MinVen, Inc., which are engaged in precious metal mining venture and investment management. EVC, EV, BMR and Eaton Vance may also enter into other businesses. The Trust will be responsible for all of its expenses not expressly stated to be payable by Wright under the Investment Advisory Contract or by Eaton Vance under the Administration Agreement, including, without limitation, the fees and expenses of its custodian and transfer agent, including those incurred for determining the Fund's net asset value and keeping the Fund's books; the cost of share certificates; membership dues in investment company organizations; brokerage commissions and fees; fees and expenses of registering its shares; expenses of reports to shareholders, proxy statements, and other expenses of shareholders' meetings; insurance premiums; printing and mailing expenses; interest, taxes and corporate fees; legal and accounting expenses; expenses of Trustees not affiliated with Eaton Vance or Wright; and investment advisory and administration fees. The Trust will also bear expenses incurred in connection with litigation in which the Trust is a party and the legal obligation the Trust may have to indemnify its officers and Trustees with respect thereto. The Trust's Investment Advisory Contract and Administration Agreement will remain in effect until February 28, 1997. The Trust's Investment Advisory Contract may be continued with respect to the Fund from year to year thereafter so long as such continuance after February 28, 1997 is approved at least annually (i) by the vote of a majority of the Trustees who are not "interested persons" of the Trust, Eaton Vance or Wright cast in person at a meeting specifically called for the purpose of voting on such approval and (ii) by the Board of Trustees of the Trust or by vote of a majority of the outstanding shares of the Fund. The Trust's Administration Agreement may be continued from year to year so long as such continuance is approved annually by the vote of a majority of the Trustees. Each agreement may be terminated as to the Fund at any time without penalty on sixty (60) days' written notice by the Board of Trustees or Trustees or Directors of either party, or by vote of the majority of the outstanding shares of the Fund, and each agreement will terminate automatically in the event of its assignment. Each agreement provides that, in the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of its obligations or duties to the Trust under such agreement on the part of Eaton Vance or Wright, Eaton Vance or Wright will not be liable to the Trust for any loss incurred. Custodian Investors Bank & Trust Company ("IBT"), 89 South Street, Boston, Massachusetts, acts as custodian for the Fund. IBT has the custody of all cash and securities of the Fund, maintains the Fund's general ledgers and computes the daily net asset value per share. In such capacity it attends to details in connection with the sale, exchange, substitution, transfer or other dealings with the Fund's investments, receives and disburses all funds and performs various other ministerial duties upon receipt of proper instructions from the Fund. IBT charges custody fees which are competitive within the industry. A portion of the custody fee for each fund served by IBT is based upon a schedule of percentages applied to the aggregate assets of those funds managed by Eaton Vance for which IBT serves as custodian, the fees so determined being then allocated among such funds relative to their size. These fees are then reduced by a credit for cash balances of the particular fund at IBT equal to 75% of the 91-day, U.S. Treasury Bill auction rate applied to the particular fund's average daily collected balances for the week. In addition, each fund pays a fee based on the number of portfolio transactions and a fee for bookkeeping and valuation services. Independent Certified Public Accountants Deloitte & Touche LLP, 125 Summer Street, Boston, Massachusetts are the Trust's independent certified public accountants, providing audit services, tax return preparation, and assistance and consultation with respect to the preparation of filings with the Securities and Exchange Commission. Brokerage Allocation Wright places the portfolio security transactions for the Fund, which in some cases may be effected in block transactions which include other accounts managed by Wright. Wright provides similar services directly for bank trust departments. Wright seeks to execute portfolio security transactions on the most favorable terms and in the most effective manner possible. In seeking best execution, Wright will use its best judgment in evaluating the terms of a transaction, and will give consideration to various relevant factors, including without limitation the size and type of the transaction, the nature and character of the markets for the security, the confidentiality, speed and certainty of effective execution required for the transaction, the reputation, experience and financial condition of the broker-dealer and the value and quality of service rendered by the broker-dealer in other transactions, and the reasonableness of the brokerage commission or markup, if any. It is expected that on frequent occasions there will be many broker-dealer firms which will meet the foregoing criteria for a particular transaction. In selecting among such firms, the Fund may give consideration to those firms which supply brokerage and research services, quotations and statistical and other information to Wright for their use in servicing their accounts. The Fund may include firms which purchase investment services from Wright. The term "brokerage and research services" includes advice as to the value of securities, the advisability of investing in, purchasing or selling securities, and the availability of securities or purchasers or sellers of securities; furnishing analyses and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy and the performance of accounts; and effecting securities transactions and performing functions incidental thereto (such as clearance and settlement). Such services and information may be useful and of value to Wright in servicing all or less than all of its accounts and the services and information furnished by a particular firm may not necessarily be used in connection with the account which paid brokerage commissions to such firm. The advisory fee paid by the Fund to Wright is not reduced as a consequence of Wright's receipt of such services and information. While such services and information are not expected to reduce Wright's normal research activities and expenses, Wright would, through use of such services and information, avoid the additional expenses which would be incurred if it should attempt to develop comparable services and information through its own staff. Subject to the requirement that Wright shall use its best efforts to seek to execute the Fund's portfolio security transactions at advantageous prices and at reasonably competitive commission rates, Wright, as indicated above, is authorized to consider as a factor in the selection of any broker-dealer firm with whom the Fund's portfolio orders may be placed the fact that such firm has sold or is selling shares of the Fund or of other investment companies sponsored by Wright. This policy is consistent with a rule of the National Association of Securities Dealers, Inc., which rule provides that no firm which is a member of the Association shall favor or disfavor the distribution of shares of any particular investment company or group of investment companies on the basis of brokerage commissions received or expected by such firm from any source. It is expected that purchases and sales of the Fund's portfolio investments will be with the issuers or with major dealers in money market instruments acting as principal, and that the Fund will normally pay no brokerage commissions. The cost of securities purchased from underwriters includes a disclosed, fixed underwriting commission or concession, and the prices for which securities are purchased from and sold to dealers usually include an undisclosed dealer mark-up or mark-down. During the fiscal years ended December 31, 1993, 1994 and 1995, the Fund paid no brokerage commissions. Pricing of Shares Portfolio assets of the Fund are valued at amortized cost in an effort to attempt to maintain a constant net asset value of $1.00 per share, which the Trustees have determined to be in the best interests of the Fund and its shareholders. The Fund's use of the amortized cost method to value the portfolio securities is conditioned on its compliance with conditions contained in a rule issued by the Securities and Exchange Commission (the "Rule"). Under the Rule, the Trustees are obligated, as a particular responsibility within the overall duty of care owed to the shareholders, to establish procedures reasonably designed, taking into account current market conditions and the investment objectives of the Fund, to stabilize the net asset value per share as computed for the purposes of distribution, redemption and repurchase at $1.00 per share. The Trustees' procedures include periodically monitoring, as they deem appropriate and at such intervals as are reasonable in light of current market conditions, the extent of deviation between the amortized cost value per share and a net asset value per share based upon available indications of market value as well as review of the methods used to calculate the deviation. The Trustees will consider what steps, if any, should be taken in the event of a difference of more than 1/2 of 1% between such two values. The Trustees will take such steps as they consider appropriate (e.g., redemption in kind, selling prior to maturity to realize gains or losses or to shorten the average portfolio maturity, withholding dividends or using market quotations) to minimize any material dilution or other unfair results to investors or existing shareholders, which might arise from differences between the two values. The Rule requires that the Fund's investments, including repurchase agreements, be limited to those U.S. dollar-denominated instruments which the Trustees determine present minimal credit risks and which are at the time of acquisition rated by the requisite number of nationally recognized statistical rating organizations in one of the two highest short-term rating categories or, in the case of any instrument that is not so rated, of comparable quality as determined by Wright in accordance with procedures established by the Trustees. It also calls for the Fund to maintain a dollar-weighted average portfolio maturity (not more than 90 days) appropriate to its objective of maintaining a stable net asset value of $1.00 per share and precludes the purchase of any instrument with a remaining maturity of more than 13 months. Should the disposition of a portfolio security result in a dollar-weighted average portfolio maturity of more than 90 days, the Fund's available cash will be invested in such a manner as to reduce such maturity to 90 days or less as soon as reasonably practicable. It is the normal practice of the Fund to hold portfolio securities to maturity and to realize par value therefor unless a sale or other disposition is mandated by redemption requirements or other extraordinary circumstances. Under the amortized cost method of valuation, traditionally employed by institutions for valuation of money market instruments, neither the amount of daily income nor the Fund's net asset value is affected by any unrealized appreciation or depreciation on securities held for the Fund. There can be no assurance that the Fund's objectives will be achieved. Principal Underwriter The Trust has entered into a Distribution Contract on behalf of the Fund with its principal underwriter, Wright Investors' Service Distributors, Inc. ("WISDI"), a wholly-owned subsidiary of Winthrop, providing for WISDI to act as a separate distributor of Fund shares. The Fund is not obligated to make any distribution payments to WISDI under its Distribution Contract. Peter M. Donovan, President, Chief Executive Officer and a Trustee of the Trust and President and a Director of Wright and Winthrop, is Vice President, Treasurer and a Director of WISDI. A. M. Moody, III, Vice President and a Trustee of the Trust and Senior Vice President of Wright and Winthrop is President and a Director of WISDI. Calculation of Yield Quotations From time to time, quotations of the Fund's yield and effective yield may be included in advertisements or communications to shareholders. If a portion of the Fund's expenses had not been subsidized, the Fund would have had lower returns. These performance figures are calculated in the following manner: A. Yield -- the net annualized yield based on a specified 7-calendar days calculated at simple interest rates. Yield is calculated by determining the net change, exclusive of capital changes, in the value of a hypothetical pre-existing account having a balance of one share at the beginning of the period, subtracting a hypothetical charge reflecting deductions from shareholders accounts, and dividing the difference by the value of the account at the beginning of the base period to obtain the base period return. The yield is annualized by multiplying the base period return by 365/7. The yield figure is stated to the nearest hundredth of one percent. The yield of the Fund for the seven-day period ended December 31, 1995 was 4.89%. B. Effective Yield -- the net annualized yield for a specified 7-calendar days assuming a reinvestment of the yield or compounding. Effective yield is calculated by the same method as yield except the annualized yield figure is compounded by adding 1, raising the sum to a power equal to 365 divided by 7, and subtracting one from the result, according to the following formula: Effective Yield = [(Base Period Return + 1)^365/7] - 1. The effective yield of the Fund for the seven-day period ended December 31, 1995 was 5.01%. As described above, yield and effective yield are based on historical earnings and are not intended to indicate future performance. Yield and effective yield will vary based on changes in market conditions and the level of expenses. The Fund's yield or total return may be compared to the Consumer Price Index and various domestic securities indices. The Fund's yield or total return and comparisons with these indices may be used in advertisements and in information furnished to present or prospective shareholders. From time to time evaluations of the Fund's performance made by independent sources may be used in advertisements and in information furnished to present or prospective shareholders. These include the rankings prepared by Lipper Analytical Services, Inc., an independent service which monitors the performance of mutual funds. The Lipper performance analysis includes the reinvestment of dividends and capital gain distributions, but does not take sales charges into consideration and is prepared without regard to tax consequences. WRIGHT U.S. TREASURY MONEY MARKET FUND PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 =============================================================================== Face Interest Maturity Amount Issuer Rate Date Value - ------------------------------------------------------------------------------- $ 200,000 U. S. Treasury Bills 5.240% 01/25/96 $ 199,301 100,000 U. S. Treasury Bills 5.200% 01/25/96 99,653 600,000 U. S. Treasury Bills 5.210% 01/25/96 597,915 3,500,000 U. S. Treasury Bills 4.700% 02/01/96 3,485,835 1,200,000 U. S. Treasury Bills 5.350% 02/15/96 1,191,975 2,300,000 U. S. Treasury Bills 5.270% 02/22/96 2,282,491 5,250,000 U. S. Treasury Bills 5.310% 02/29/96 5,204,312 950,000 U. S. Treasury Bills 5.280% 03/07/96 940,804 400,000 U. S. Treasury Bills 5.310% 03/07/96 396,106 1,150,000 U. S. Treasury Bills 5.295% 03/07/96 1,138,837 5,500,000 U. S. Treasury Bills 4.760% 03/07/96 5,452,003 2,400,000 U. S. Treasury Bills 5.340% 03/14/96 2,374,012 1,000,000 U. S. Treasury Bills 5.300% 03/14/96 989,253 3,800,000 U. S. Treasury Bills 5.350% 03/28/96 3,750,869 300,000 U. S. Treasury Bills 5.300% 04/04/96 295,848 400,000 U. S. Treasury Bills 5.260% 04/04/96 394,506 900,000 U. S. Treasury Bills 5.270% 04/04/96 887,616 200,000 U. S. Treasury Bills 5.240% 04/04/96 197,264 300,000 U. S. Treasury Bills 5.210% 04/04/96 295,919 1,600,000 U. S. Treasury Bills 5.315% 04/04/96 1,577,795 600,000 U. S. Treasury Bills 5.190% 04/04/96 591,869 3,500,000 U. S. Treasury Bills 5.000% 04/25/96 3,444,097 800,000 U. S. Treasury Bills 5.250% 05/09/96 784,950 600,000 U. S. Treasury Bills 5.270% 05/09/96 588,669 3,300,000 U. S. Treasury Bills 5.240% 05/09/96 3,238,037 1,400,000 U. S. Treasury Bills 5.220% 05/16/96 1,372,392 300,000 U. S. Treasury Bills 5.190% 05/16/96 294,118 400,000 U. S. Treasury Bills 5.120% 05/16/96 392,263 2,000,000 U. S. Treasury Bills 5.180% 05/30/96 1,956,833 200,000 U. S. Treasury Bills 5.210% 05/30/96 195,658 250,000 U. S. Treasury Bills 5.230% 05/30/96 244,552 800,000 U. S. Treasury Bills 5.220% 05/30/96 782,600 ---------- TOTAL INVESTMENTS AT AMORTIZED COST -- 99.5% $45,638,352 Other Assets, less Liabilities -- 0.5% 250,595 ---------- Net Assets -- 100.0% $45,888,947 ===========
See notes to financial statements WRIGHT U.S. TREASURY MONEY MARKET FUND =============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 - ------------------------------------------------------------------------------- ASSETS: Investments, at amortized cost and value (Note 1A).................................... $45,638,352 Cash............................................ 237,761 Receivable for Fund shares sold................. 195,080 Deferred organizational costs (Note 1D)......... 5,440 ---------- Total Assets................................. $46,076,633 LIABILITIES: Payable for Fund shares reacquired.... $121,922 Payable to dividend disbursing agent.. 52,032 Investment Adviser fee payable........ 4,916 Custodian fee payable................. 3,100 Trustees' fees payable................ 250 Accrued expenses and other liabilities 5,466 -------- Total Liabilities.................. 187,686 ----------- NET ASSETS (Consisting of paid-in capital)...... $45,888,947 =========== Net Asset Value, Offering Price, and Redemption Price Per Share ($45,888,947 / 45,888,947 shares of beneficial interest outstanding).......... $1.00 ===========
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------- INVESTMENT INCOME: Interest income (Note 1B)........................$ 2,632,668 ----------- Expenses -- Investment Adviser fee (Note 3)....... $162,732 Administrator fee (Note 3)............ 32,543 Compensation of Trustees not affiliated with the Investment Adviser or Administrator.. 1,563 Custodian fee (Note 3)................ 42,735 Audit and legal....................... 22,068 Registration costs.................... 15,385 Transfer & dividend disbursing agent fees ................................ 10,284 Shareholder communication expense..... 5,774 Amortization of organization costs(Note 1D)4,630 Printing.............................. 2,611 Miscellaneous......................... 2,526 -------- Total expenses...................... $302,851 -------- Deduct -- Reduction of Investment Adviser fee (Note 3)......................... $ 87,656 Reduction of Custodian fee (Note 3)... 5,959 -------- Total deductions.................... $ 93,615 -------- Net expenses................................... 209,236 ----------- Net investment income..........................$ 2,423,432 ===========
STATEMENTS OF CHANGES IN NET ASSETS - ------------------------------------------------------------------------------- Year Ended December 31 1995 1994 ----------------------------- FROM OPERATIONS: Net investment income.................................................................. $ 2,423,432 $ 1,697,224 ------------ ------------ DIVIDENDS DECLARED FROM NET INVESTMENT INCOME (Note 2).................................... $ (2,423,432) $ (1,697,224) ------------ ------------ FROM FUND SHARE (PRINCIPAL) TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE (Note 4): Proceeds from sale of shares........................................................... $217,876,175 $204,314,264 Net asset value of shares issued to shareholders in connection with the merger of Wright Managed Money Market Fund (Note 7)............................................ -- 16,981,815 Net asset value of shares issued to shareholders in payment of dividends declared...... 1,823,063 1,121,380 Cost of shares reacquired.............................................................. (242,687,133) (164,551,690) ------------ ------------ Increase (decrease) in net assets from Fund share transactions....................... $(22,987,895) $ 57,865,769 ------------ ------------ Net increase (decrease) in net assets.............................................. $(22,987,895) $ 57,865,769 NET ASSETS: Beginning of year...................................................................... 68,876,842 11,011,073 ------------ ------------ End of year............................................................................ $ 45,888,947 $ 68,876,842 ============= =============
See notes to financial statements. WRIGHT U.S. TREASURY MONEY MARKET FUND NOTES TO FINANCIAL STATEMENTS =============================================================================== (1) SIGNIFICANT ACCOUNTING POLICIES Wright U.S. Treasury Money Market Fund (the Fund) is a series of The Wright Managed Income Trust (the Trust) and is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end, management investment company. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A. Valuation of Investments -- Money market instruments are valued at amortized cost, which the Trustees have determined in good faith constitutes fair value. The Fund's use of amortized cost is subject to the Fund's compliance with certain conditions as specified under Rule 2a-7 of the Investment Company Act of 1940. B. Interest Income -- Interest income consists of interest accrued and discount earned (including both original issue and market discount) on the investments of the Fund, accrued ratably to the date of maturity plus or minus net realized gain or loss, if any, on investments. C. Federal Taxes -- The Fund's policy is to comply with the provisions of the Internal Revenue Code available to regulated investment companies and distribute to shareholders each year all of its taxable income. Accordingly, no provision for federal income or excise tax is necessary. D. Deferred Organization Costs -- Costs incurred by the Fund in connection with its organization are being amortized on a straight-line basis through June 1996. E. Other -- Investment transactions are accounted for on the date the investments are purchased or sold. (2) DIVIDENDS The net investment income of the Fund is determined daily, and all of the net investment income so determined is declared as a dividend to shareholders of record at the time of such determination. Dividends are distributed monthly in the form of additional shares of the Fund or, at the election of the shareholder, in cash, on the payable date. (3) INVESTMENT ADVISER AND ADMINISTRATOR FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Fund has engaged Wright Investors' Service (Wright) to perform investment management, investment advisory, and other services. For its services, Wright is compensated based on a percentage of average daily net assets which rate is adjusted as average daily net assets exceed certain levels. For the year ended December 31, 1995, the effective annual rate was 0.35%. To enhance the net income of the Fund, Wright reduced its investment adviser fee by $87,656. The Fund has also engaged Eaton Vance Management (Eaton Vance) to act as administrator of the Fund. Under the Administration Agreement, Eaton Vance is responsible for managing the business affairs of the Fund and is compensated based on a percentage of average daily net assets which rate is reduced as average daily net assets exceed certain levels. For the year ended December 31, 1995, the effective annual rate was 0.07%. The custodian fee was paid to Investors Bank & Trust Company (IBT) for its services as custodian to the Fund. Prior to November 10, 1995, IBT was an affiliate of Eaton Vance. Pursuant to the custodian agreement, IBT receives a fee reduced by credits which are determined based on the average daily cash balances the Fund maintains with IBT. All significant credits are reported as a reduction of expenses in the Statement of Operations. Certain of the Trustees and officers of the Trust are directors/trustees and/or officers of the above organizations. Except as to Trustees who are not affiliated with Wright or Eaton Vance, Trustees and officers receive remuneration for their services to the Fund out of the fees paid to Wright or Eaton Vance. (4) SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). (5) INVESTMENTS Purchases and sales and maturities of investments aggregated $297,818,179 and $319,229,911, respectively. (6) LINE OF CREDIT The Fund participates with other funds managed by Wright in a line of credit with a bank which allows the Funds to borrow up to $20,000,000 collectively. The line of credit consists of a $10,000,000 committed facility and a $10,000,000 uncommitted facility. Interest is charged to each fund based on its borrowings, at a rate equal to the bank's base rate. In addition, the funds pay a prorated commitment fee computed at a rate of 1/4 of 1% of $10,000,000 less the value of any borrowing. The Trust did not have any borrowings under the line of credit during the year ended December 31, 1995. (7) ACQUISITION OF WRIGHT MANAGED MONEY MARKET FUND On March 30, 1994, the Fund acquired the net assets of Wright Managed Money Market Fund pursuant to a plan of reorganization dated March 28,1994 and approved by the shareholders of both funds. The acquisition was accomplished by a tax-free exchange of 16,981,815 shares of Wright Managed Money Market Fund for the same number of shares of Wright U.S. Treasury Money Market Fund. The aggregate net assets of the Fund immediately after the acquisition was $40,883,041. INDEPENDENT AUDITORS' REPORT To the Trustees and Shareholders of The Wright Managed Income Trust: We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Wright U.S. Treasury Money Market Fund (one of the series constituting The Wright Managed Income Trust) as of December 31, 1995, and the related statements of operations for the year then ended, the statement of changes in net assets for the years ended December 31, 1995 and 1994, and the financial highlights (see page 5 of the Prospectus) for each of the years in the five-year period ended December 31, 1995. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of the securities owned at December 31, 1995, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of Wright U.S. Treasury Money Market Fund series of The Wright Managed Income Trust as of December 31, 1995, the results of its operations, the changes in its net assets, and its financial highlights for the respective stated periods in conformity with generally accepted accounting principles. DELOITTE & TOUCHE, LLP Boston, Massachusetts February 2, 1996 P R O S P E C T U S MAY 1, 1996 THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS The Wright Managed Blue Chip Investment Funds (the "Funds") consist of nine series or Funds from The Wright Managed Equity Trust and The Wright Managed Income Trust (the "Trusts"). Each Fund has distinct investment objectives and policies which are discussed starting on page 1. The nine Funds are: WRIGHT SELECTED BLUE CHIP EQUITIES FUND WRIGHT U.S. TREASURY FUND WRIGHT JUNIOR BLUE CHIP EQUITIES FUND WRIGHT U.S. TREASURY NEAR TERM FUND WRIGHT QUALITY CORE EQUITIES FUND WRIGHT TOTAL RETURN BOND FUND WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND WRIGHT CURRENT INCOME FUND WRIGHT U.S. TREASURY MONEY MARKET FUND This combined Prospectus is designed to provide you with information you should know before investing. Please retain this document for future reference. A combined Statement of Additional Information dated May 1, 1996, for the Funds has been filed with the Securities and Exchange Commission and is incorporated herein by reference. This Statement is available without charge from Wright Investors' Service Distributors, Inc., 1000 Lafayette Boulevard, Bridgeport, Connecticut 06604 (Telephone: 800-888-9471). THE PROSPECTUSES OF THE FUNDS ARE COMBINED IN THIS PROSPECTUS. EACH FUND OFFERS ONLY ITS OWN SHARES, YET IT IS POSSIBLE THAT A FUND MIGHT BECOME LIABLE FOR A MISSTATEMENT IN THE PROSPECTUS OF ANOTHER FUND. THE TRUSTEES OF EACH TRUST HAVE CONSIDERED THIS IN APPROVING THE USE OF A COMBINED PROSPECTUS. SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR ENDORSED OR GUARANTEED BY ANY BANK OR OTHER INSURED DEPOSITORY INSTITUTION, AND ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. SHARES OF THE FUNDS INVOLVE INVESTMENT RISKS, INCLUDING FLUCTUATIONS IN VALUE AND THE POSSIBLE LOSS OF SOME OR ALL OF THE PRINCIPAL INVESTMENT. SHARES OF WRIGHT U.S. TREASURY MONEY MARKET FUND ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT AND THERE IS NO ASSURANCE THAT IT WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE. TABLE OF CONTENTS PAGE Shareholder and Fund Expenses..................... ii Financial Highlights.............................. iv The Funds and their Investment Objectives and Policies ................................... 1 The Wright Managed Equity Trust Wright Selected Blue Chip Equities Fund (WBC)... 1 Wright Junior Blue Chip Equities Fund (WJBC).... 2 Wright Quality Core Equities Fund (WQC)......... 2 Wright International Blue Chip Equities Fund( WIBC).................................... 2 The Wright Managed Income Trust Wright U.S. Treasury Fund (WUSTB)............... 3 Wright U.S. Treasury Near Term Fund (WNTB)...... 3 Wright Total Return Bond Fund (WTRB)............ 3 Wright Current Income Fund (WCIF)............... 3 Wright U.S. Treasury Money Market Fund (WTMM)... 4 Other Investment Policies......................... 4 The Investment Adviser............................ 7 The Administrator................................. 9 Distribution Expenses............................. 9 How the Funds Value their Shares.................. 10 How to Buy Shares................................. 11 How Shareholder Accounts are Maintained........... 12 Distributions by the Funds........................ 13 Taxes............................................. 13 How to Exchange Shares............................ 15 How to Redeem or Sell Shares...................... 16 Performance Information........................... 17 Other Information................................. 18 Tax-Sheltered Retirement Plans.................... 18 THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. SHAREHOLDER AND FUND EXPENSES The following table of fees and expenses is provided to assist investors in understanding the various costs and expenses which may be borne directly or indirectly by an investment in each Fund. The percentages shown below representing total operating expenses are based on actual amounts incurred for the fiscal year ended December 31, 1995. Wright Wright Wright Wright Selected Blue Chip Junior Blue Chip Quality Core International Blue Chip Equities Fund (WBC) Equities Fund (WJBC) Equities Fund (WQC) Equities Fund (WIBC) - ----------------------------------------------------------------------------------------------------------------------------------- SHAREHOLDER TRANSACTION EXPENSES none none none none ANNUALIZED FUND OPERATING EXPENSES (as a percentage of average net assets) Investment Adviser Fee 0.62% 0.55% 0.45% 0.77% Rule 12b-1 Distribution Expense (after expense reduction) (2) 0.20% 0.09% 0.18% 0.20% Other Expenses (including administration fees) (1) 0.22% 0.53% 0.44% 0.32% ----- ----- ----- ----- TOTAL OPERATING EXPENSES (after reductions)(2) 1.04% 1.17% 1.07% 1.29% - ----------------------------------------------------------------------------------------------------------------------------------- (1) Administration fees for WJBC and WQC were 0.20%, for WBC 0.13% and for WIBC 0.12%; (2) Absent a fee reduction, expenses of WJBC and WQC would have been the following as a percentage of average net assets: WJBC distribution expenses would have been 0.20% and total operating expenses would have been 1.28% and WQC distribution expenses would have been 0.20% and total operating expenses would have been 1.09%.These fee reductions will continue during 1996 to the extent necessary to keep from exceeding the total operating expenses (without regard to custodian fee credits) of WJBC and WQC from exceeding 1.15% and 1.05%, respectively. In addition, during the year ended December 31, 1995, custodian fees were reduced by credits resulting from cash balances maintained with Investors Bank & Trust Company. If these credits were reflected in the above table, the Total Operating Expenses shown above would have been 1.14% for WJBC and 1.05% for WQC.
Wright Wright Wright Wright Wright U.S. Treasury U.S. Treasury Total Return Current U.S. Treasury Fund Near Term Fund Bond Fund Income Fund Money Market Fund (WUSTB) (WNTB) (WTRB) (WCIF) (WTMM) - ------------------------------------------------------------------------------------------------------------------------------- SHAREHOLDER TRANSACTION EXPENSES None None None None None ANNUALIZED FUND OPERATING EXPENSES after expense allocations and fee reductions (as a percentage of average net assets) Investment Adviser Fee (after fee reduction) 0.29% 0.43% 0.41% 0.40% 0.16% Rule 12b-1 Distribution Expense (after expense reduction) 0.00% 0.20% 0.20% 0.20% None Other Expenses (including administration fees)(1) 0.64% 0.16% 0.20% 0.27% 0.30% ----- ----- ----- ----- ----- TOTAL OPERATING EXPENSES (after reductions)(2 )0.93% 0.79% 0.81% 0.87% 0.46% - ------------------------------------------------------------------------------------------------------------------------------- (1) Administration fees were as follows: 0.10% for WUSTB and WCIF; 0.07% for WNTB and WTMM; and 0.09% for WTRB; (2) If there had been no reduction of management or distribution fees for WUSTB, WUSTB's distribution expense and total operating expenses as a percentage of net assets would have been: 0.20% and 1.24%, respectively. If no advisory fee reduction were made, the annual operating expenses for WTMM as a percentage of net assets would have been: Investment Adviser Fee - 0.35%, Other Expenses - 0.30% and Total Operating Expenses - 0.65%. These fee reductions will continue in effect to the extent necessary to keep the total operating expenses (without regard to custodian fee credits) of WUSTB and WTMM from exceeding 0.90% and 0.45%, respectively. In addition, during the year ended December 31, 1995, custodian fees were reduced by credits resulting from cash balances maintained with Investors Bank & Trust Company. If these credits were reflected in the above table, the Total Operating Expenses shown above would have been 0.90% for WUSTB, 0.78% for WNTB and 0.45% for WTMM.
EXAMPLE OF FUND EXPENSES The following is an illustration of the total transaction and operating expenses that an investor in each Fund would bear over different periods of time, assuming an investment of $1,000, a 5% annual return on the investment and redemption at the end of each period: Wright Wright Wright Wright Selected Blue Chip Junior Blue Chip Quality Core International Blue Chip Equities Fund Equities Fund Equities Fund Equities Fund (WBC) (WJBC) (WQC) (WIBC) - -------------------------------------------------------------------------------------------------------------------------------- 1 Year $ 11 $ 12 $ 11 $ 13 3 Years 33 37 34 41 5 Years 57 64 59 71 10 Years 127 142 131 156 - --------------------------------------------------------------------------------------------------------------------------------
Wright Wright Wright Wright Wright U.S. Treasury U.S. Treasury Total Return Current U.S. Treasury Fund Near Term Fund) Bond Fund Income Fund Money Market Fund (WUSTB) (WNTB) (WTRB) (WCIF) (WTMM) - -------------------------------------------------------------------------------------------------------------------------------- 1 Year $ 9 $ 8 $ 8 $ 9 $ 5 3 Years 30 25 26 28 15 5 Years 51 44 45 48 26 10 Years 114 98 100 107 58 - --------------------------------------------------------------------------------------------------------------------------------
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. Federal regulations require the Example to assume a 5% annual return, but actual return will vary. A Fund's payment of a distribution fee may result in a long-term shareholder indirectly paying more than the economic equivalent of the maximum initial sales charge permitted under the Rules of Fair Practice of the National Association of Securities Dealers, Inc. Wright U.S. Treasury Money Market Fund does not pay a distribution fee. FINANCIAL HIGHLIGHTS The following information should be read in conjunction with the audited financial statements included in the Funds' annual reports to shareholders which are incorporated by reference into the Statement of Additional Information in reliance upon the report of Deloitte & Touche LLP, independent certified public accountants, as experts in accounting and auditing. Further information regarding the performance of a Fund is contained in its annual report to shareholders which may be obtained without charge by contacting the Funds' Principal Underwriter, Wright Investors' Service Distributors, Inc. at (800) 888-9471. THE WRIGHT MANAGED EQUITY TRUST Year Ended December 31, -------------------------------------------------------------------------------------- WRIGHT SELECTED BLUE CHIP EQUITIES FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 - --------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year. $13.850 $ 14.920 $ 14.790 $17.180 $13.840 $ 15.370 $ 13.760 $12.120 $14.040 $13.490 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Income (loss) from Investment Operations: Net investment income(1)......... $0.226 $ 0.233 $ 0.196 $ 0.222 $ 0.267 $ 0.323 $ 0.368 $ 0.315 $ 0.292 $ 0.287 Net realized and unrealized gain (loss) on investments...... 3.904 (0.763) 0.104 0.498 4.553 (0.843) 2.922 2.250 (0.557) 1.553 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total income (loss) from investment operations........... $ 4.130 $ (0.530)$ 0.300 $ 0.720 $ 4.820 $ (0.520)$ 3.290 $ 2.565 $(0.265) $ 1.840 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Less Distributions: From net investment income....... $(0.200)$ (0.180)$(0.170) $ (0.200)$(0.250)$ (0.320)$(0.310) $(0.275)$(0.340) $(0.310) From net realized gain on investments .................... (0.840) (0.360) -- (2.910) (1.230) (0.690) (1.370) (0.650) (1.315) (0.980) In excess of net realized gain on investments(3).................. (0.110) -- -- -- -- -- -- -- -- -- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total distributions.............. $(1.150)$(0.540) $(0.170) $ (3.110)$(1.480) $(1.010)$(1.680) $(0.925)$(1.655)$(1.290) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Net asset value, end of year....... $16.830 $ 13.850 $ 14.920 $14.790 $17.180 $ 13.840 $ 15.370 $13.760 $12.120 $14.040 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Total Return(2).................... 30.34% (3.52%) 2.06% 4.71% 35.98% (3.30%) 24.57% 21.31% (1.83%) 14.18% Ratios/Supplemental Data Net assets, end of year (000 omitted)................... $217,588 $186,016 $175,481 $152,997 $167,900 $108,571 $120,345 $114,042 $ 99,200 $92,908 Ratio of expenses to average net assets .................... 1.04% 1.03% 1.03% 1.02% 1.08% 1.12% 1.11% 1.10% 1.03% 0.98% Ratio of net investment income to average net assets.............. 1.44% 1.57% 1.28% 1.34% 1.67% 2.28% 2.38% 2.29% 1.92% 1.96% Portfolio Turnover Rate 44% 72% 28% 77% 72% 83% 20% 29% 30% 40% (1) During each of the years ended December 31, 1987 and 1986, the operating expenses of the Fund were reduced either by a reduction of the investment adviser fee, administration fee, distribution fee, or through the allocation of expenses to the Adviser, or a combination of these. Had such actions not been undertaken, the net investment income per share and the ratios would have been as follows: Net investment income per share.... $ 0.279 $ 0.278 ======= ======= Ratios (As a percentage of average net assets): Expenses......................... 1.09% 1.02% ======= ======= Net investment income............ 1.86% 1.92% ======= ======= (2) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the record date. (3) The Fund has followed the Statement of Position (SOP) 93-2:Determination, Disclosure and Financial Statement Presentation of Income, Capital Gain, and Return of Capital Distribution by Investment Companies. The SOP requires that differences in the recognition or classification of income between the financial statements and tax earnings and profits that result in temporary over-distributions for financial statement purposes, are classified as distributions in excess of net investment income or accumulated net realized gains.
Year Ended December 31, --------------------------------------------------------------------------------------- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 - ---------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year. $11.000 $ 11.950 $ 11.690 $14.720 $11.500 $ 13.020 $ 12.450 $11.030 $12.730 $12.380 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Income from Investment Operations: Net investment income(1)......... $ 0.120 $ 0.101 $ 0.101 $ 0.045 $ 0.072 $ 0.111 $ 0.177 $ 0.197 $ 0.131 $ 0.149 Net realized and unrealized gain (loss) on investments..................... 1.977 (0.431) 0.809 0.315 4.118 (1.491) 1.723 1.478 (0.671) 0.541 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total income (loss) from investment operations.................... $ 2.097 $ (0.330)$ 0.910 $0.360 $ 4.190 $ (1.380) $ 1.900 $ 1.675 $(0.540) $ 0.690 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Less Distributions: From net investment income....... $(0.100) $ (0.100)$ (0.060) $(0.030)$(0.070)$ (0.140) $ (0.150) $(0.175)$(0.150)$(0.160) From net realized gain on investments..................... (1.030) (0.520) (0.590) (3.360) (0.900) -- (1.180) (0.080) (1.010) (0.180) In excess of net realized gain on investments(4)............... (1.117) -- -- -- -- -- -- -- -- -- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total distributions.............. $(2.247) $(0.620) $(0.650) $(3.390)$(0.970)$ (0.140) $(1.330) $(0.255)$(1.160)$(0.340) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Net asset value, end of year....... $10.850 $ 11.000 $ 11.950 $11.690 $14.720 $ 11.500 $ 13.020 $12.450 $11.030 $12.730 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Total Return(3).................... 20.51% (2.75%) 7.93% 3.28% 36.98% (10.61%) 15.61% 15.21% (3.58%) 5.62% Ratios/Supplemental Data Net assets, end of year (000 omitted)................... $25,993 $ 37,124 $ 68,226 $ 64,635 $120,911$ 63,385 $ 98,593 $121,644 $95,808 $74,113 Ratio of expenses to average net assets ..................... 1.17%(2) 1.11% 1.09% 1.07% 1.10% 1.14% 1.10% 1.08% 1.03% 1.05% Ratio of net investment income to average net assets.............. 0.89% 0.91% 0.86% 0.31% 0.52% 0.95% 1.34% 1.61% 0.96% 1.11% Portfolio Turnover Rate............ 40% 36% 38% 80% 60% 75% 15% 38% 58% 20% (1) During the year ended December 31, 1995, the Principal Underwriter reduced its fee and during the year ended December 31, 1987, the Administrator reduced its fee. Had such actions not been undertaken, net investment income per share and the ratios would have been as follows: 1995 1987 ---- ---- Net investment income per share.. $ 0.105 $ 0.118 ======== ======== Ratios (As a percentage of average net assets): Expenses........................ 1.28% 1.08% ======== ======== Net investment income........... 0.78% 0.91% ======== ======== (2) Custodian fees were reduced by credits resulting from cash balances the Trust maintained with the custodian. The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, in accordance with reporting regulations in effect beginning in 1995. If these credits were considered, the ratio of net expenses to average daily net assets would have been reduced to 1.14%. (3) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the record date. (4) The Fund has followed the Statement of Position (SOP) 93-2:Determination, Disclosure and Financial Statement Presentation of Income, Capital Gain, and Return of Capital Distribution by Investment Companies. The SOP requires that differences in the recognition or classification of income between the financial statements and tax earnings and profits that result in temporary over-distributions for financial statement purposes, are classified as distributions in excess of net investment income or accumulated net realized gains.
Year Ended December 31, -------------------------------------------------------------------------------------- WRIGHT QUALITY CORE EQUITIES FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 - ------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of year. $11.390 $ 12.720 $ 13.380 $14.730 $10.760 $ 11.290 $ 10.590 $ 9.710 $12.810 $11.300 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Income (Loss) from Investment Operations: Net investment income(1)......... $ 0.153 $ 0.180 $ 0.176 $ 0.179 $ 0.175 $ 0.192 $ 0.207 $ 0.211 $ 0.233 $ 0.232 Net realized and unrealized gain (loss) on investments........... 3.107 (0.295) (0.046) 0.951 3.985 (0.522) 2.163 1.394 (0.303) 1.658 ------- ------- ------- ------- - ------- ------- ------- ------- ------- ------- Total income (loss) from investment operations.................... $ 3.260 $ (0.115)$ 0.130 $1.130 $ 4.160 $ (0.330) $ 2.370 $ 1.605 $(0.070)$ 1.890 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Less Distributions: From net investment income....... $(0.160)$ (0.160)$ (0.160) $(0.160)$ (0.190)$(0.200) $(0.220) $(0.185) $(0.265)$(0.240) From net realized gain on investments.................... (1.840) (1.055) (0.625) (2.320) -- -- (1.450) (0.540) (2.765) (0.140) In excess of net realized gains(4) -- -- (0.005) -- -- -- -- -- -- -- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total distributions.............. $(2.000)$(1.215) $(0.790) $(2.480)$ (0.190)$(0.200) $(1.670) $(0.725) $(3.030)$(0.380) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Net asset value, end of year....... $12.650 $ 11.390 $ 12.720 $13.380 $14.730 $ 10.760 $ 11.290 $10.590 $ 9.710 $12.810 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Total Return....................... 28.98% (0.70%) 1.00% 8.02% 38.90% (2.89%) 23.02% 16.66% 1.01% 16.90% Ratios/Supplemental Data Net assets, end of year (000 omitted)................... $49,134 $ 51,085 $ 88,349 $ 81,674 $80,065 $ 44,293 $ 50,193 $ 60,989 $ 60,579 $ 81,939 Ratio of expenses to average net assets...................... 1.07%(2) 0.99% 0.97% 1.01% 1.03% 1.07% 1.14% 1.06% 0.96% 1.03% Ratio of net investment income to average net assets.............. 1.19% 1.46% 1.37% 1.20% 1.34% 1.80% 1.76% 1.97% 1.61% 1.79% Portfolio Turnover Rate............ 83% 55% 53% 70% 9% 18% 12% 14% 34% 17% (1) The Principal Underwriter made a reduction of its fees during the years ended December 31, 1995 and 1990. During each of the years ended December 31, 1987, 1988 and 1989, the operating expenses of the Fund were reduced either by a reduction of the investment adviser fee, administrator fee, distribution fee, or a reduction of a combination of these fees. Had such actions not been undertaken, the net investment income per share and the ratios would have been as follows: Year Ended December 31, -------------------------------------------- 1995 1990 1989 1988 1987 ---- ---- ---- ---- ---- Net investment income per share............. $ 0.150 $ 0.183 $ 0.206 $ 0.208 $ 0.222 ======= ======= ======= ======= ======= Ratios (As a percentage of average net assets): Expenses................................. 1.09% 1.15% 1.15% 1.08% 1.00% ======= ======= ======= ======= ======= Net investment income.................... 1.17% 1.72% 1.75% 1.95% 1.57% ======= ======= ======= ======= ======= (2) Custodian fees were reduced by credits resulting from cash balances the Trust maintained with the custodian. The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, in accordance with reporting regulations in effect beginning in 1995. If these credits were considered, the ratio of net expenses to average daily net assets would have been reduced to 1.05%. (3) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the record date. (4) The Fund has followed the Statement of Position (SOP) 93-2:Determination, Disclosure and Financial Statement Presentation of Income, Capital Gain, and Return of Capital Distribution by Investment Companies. The SOP requires that differences in the recognition or classification of income between the financial statements and tax earnings and profits that result in temporary over-distributions for financial statement purposes, are classified as distributions in excess of net investment income or accumulated net realized gains.
Year Ended December 31, ------------------------------------------------------------------ WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND 1995 1994 1993 1992 1991 1990 1989(2) - ------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of year. $ 13.090 $13.410 $10.520 $ 11.040 $ 9.520 $10.400 $10.000 --------- ------- ------- ------- ------- ------- ------- Income (loss) from Investment Operations: Net investment income(1)......... $ 0.142 $ 0.127 $ 0.107 $ 0.094 $ 0.115 $ 0.164 $ 0.092 Net realized and unrealized gain (loss) on investments..................... 1.638 (0.347) 2.853 (0.524) 1.515 (0.874) 0.353 ------- ------- ------- ------- ------- ------- ------- Total income (loss) from investment operations.................... $ 1.780 $(0.220) $ 2.960 $ (0.430)$ 1.630 $(0.710) $ 0.445 ------- ------- ------- ------- ------- ------- ------- Less Distributions: From net investment income....... $ (0.100)$(0.100) $(0.070)$ (0.090)$ (0.110)$(0.170) $(0.045) -------- ------- ------- ------- ------- ------- ------- Net asset value, end of year....... $ 14.770 $13.090 $13.410 $ 10.520 $ 11.040 $ 9.520 $10.400 ======= ======= ======= ======= ======= ======= ======= Total Return(3).................... 13.61% (1.64%) 28.22% (3.94%) 17.21% (6.92%) 4.46%(4) Ratios/Supplemental Data Net assets, end of year (000 omitted) $237,176 $200,232 $100,071 $74,409 $51,802 $18,842 $ 14,363 Ratio of expenses to average net assets 1.29% 1.31% 1.46% 1.51% 1.67% 1.65% 0.59%(4) Ratio of net investment income to average net assets.............. 0.99% 1.00% 0.67% 0.81% 1.12% 1.66% 3.28%(4) Portfolio Turnover Rate 12% 12% 30% 15% 23% 13% 0% (1) During each of the two years in the period ended December 31, 1990, the operating expenses of the Fund were reduced either by a reduction of the investment adviser fee, administrator fee, or distribution fee or a reduction of a combination of these fees. Had such actions not been undertaken, the net investment income per share and the annualized ratios would have been as follows: Year Ended December 31, -------------------- 1990 1989(2) Net investment income per share.... $ 0.092 $ 0.065 ======= ======= Ratios (As a percentage of average net assets): Expenses......................... 2.38% 1.55%(4) ======= ======= Net investment income............ 0.93% 2.33%(4) ======= ======= (2) For the period from September 14, 1989 (commencement of operations), to December 31, 1989. (3) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the record date. (4) Annualized.
THE WRIGHT MANAGED INCOME TRUST Year Ended December 31, ---------------------------------------------------------------------------------------- WRIGHT U.S. TREASURY FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 - ------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of year. $12.250 $ 14.360 $ 13.190 $13.220 $12.100 $ 12.300 $ 11.440 $11.540 $13.070 $11.800 ------- -------- -------- -------- ------- -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income(1)......... $ 0.880 $ 0.880 $ 0.892 $ 0.911 $ 0.902 $ 0.912 $ 0.937 $ 0.950 $ 0.978 $ 1.012 Net realized and unrealized gain (loss) on investments..... 2.458 (2.110) 1.170 (0.030) 1.120 (0.202) 0.859 (0.100) (1.398) 1.258 ------- -------- -------- -------- ------- -------- -------- -------- -------- -------- Total income (loss) from investment operations..................... $ 3.338 $ (1.230)$ 2.062 $ 0.881 $ 2.022 $ 0.710 $ 1.796 $ 0.850 $(0.420) $ 2.270 ------- -------- -------- -------- ------- -------- -------- -------- -------- -------- Less Distributions: From net investment income....... $(0.878)$(0.880) $ (0.892)$(0.911) $(0.902)$ (0.910 )$ (0.936)$(0.950)$(1.100) $(1.000) From net realized gain on investment transactions.................... -- -- -- -- -- -- -- -- (0.010) -- ------ --------- -------- -------- ------- -------- -------- -------- -------- -------- Total distributions........... $(0.878)$(0.880) $ (0.892)$(0.911) $(0.902)$(0.910) $(0.936)$(0.950) $(1.110)$(1.000) ------- -------- -------- -------- ------- -------- -------- -------- -------- -------- Net asset value, end of year....... $14.710 $ 12.250 $ 14.360 $13.190 $13.220 $ 12.100 $ 12.300 $11.440 $11.540 $13.070 ======= ======== ======== ======== ======= ======= ========= ======= ======== ========= Total Return(2).................... 28.18% (8.66%) 15.90% 7.07% 17.56% 6.33% 16.26% 7.60% (2.96%) 19.91% Ratios/Supplemental Data: Net assets, end of year (000 omitted)...................$ 15,156 $ 16,658 $ 29,846 $29,703 $33,857 $ 37,293 $49,445 $36,037 $41,337 $46,602 Ratio of net expenses to average net assets...................... 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.7% 0.9% Ratio of net investment income to average net assets.............. 6.6% 6.9% 6.3% 7.1% 7.4% 8.1% 7.9% 8.3% 8.1% 8.0% Portfolio Turnover Rate.......... 8% 1% 12% 15% 15% 32% 15% 14% 68% 7% (1) During the year ended December 31, 1987, the operating expenses of the Fund were reduced either by a reduction of the investment adviser fee, administrator fee, or distribution fee or through certain expense allocations to the Adviser or a combination of these. During each of the four years ended December 31, 1995, the operating expenses of the Fund were reduced either by an allocation of expenses to the Adviser or a reduction in distribution fee, or a combination of these. Had such actions not been undertaken, the net investment income per share and the ratios would have been as follows: Year Ended December 31, -------------------------------------------- 1995 1994 1993 1992 1987 Net investment income per share.... $ 0.827 $ 0.854 $ 0.878 $ 0.898 $ 0.960 ======== ======== ================ ======== Ratios (As a percentage of average net assets): Expenses........................ 1.2% 1.1% 1.0% 1.0% 0.8% ======== ======== ================ ======== Net investment income........... 6.2% 6.7% 6.2% 7.0% 8.0% ======== ======== ================ ======== (2) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the payable date.
Year Ended December 31, ---------------------------------------------------------------------------------------- WRIGHT U.S. TREASURY NEAR TERM FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 - ------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of year. $ 9.920 $ 10.840 $ 10.660 $10.750 $10.260 $ 10.330 $ 10.160 $10.500 $11.400 $11.020 -------- -------- -------- -------- ------- -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income(1)......... $ 0.631 $ 0.588 $ 0.655 $ 0.739 $ 0.795 $ 0.871 $ 0.928 $ 0.928 $ 0.969 $ 0.999 Net realized and unrealized gain (loss) on investments........... 0.524 (0.920) 0.180 (0.090) 0.489 (0.068) 0.160 (0.340) (0.739) 0.391 -------- --------- -------- ------- ------ --------- -------- -------- -------- -------- Total income (loss) from investment operations..................... $ 1.155 $ (0.332)$ 0.835 $ 0.649 $ 1.284 $ 0.803 $ 1.088 $ 0.588 $ 0.230 $1.390 -------- ---------- ------ -------- ------ --------- -------- ------- -------- -------- Less Distributions: From net investment income....... $ (0.625)$ (0.588)$ (0.655) $(0.739)$ (0.794)$(0.873)$ (0.918) $(0.928)$(1.120) $(0.990) From net realized gain on investment transactions.................... -- -- -- -- -- -- -- -- (0.010) (0.020) ------- --------- -------- -------- -------- ------- -------- -------- -------- -------- Total distributions........... $ (0.625)$ (0.588)$(0.655) $(0.739)$ (0.794)$(0.873) (0.918) $(0.928)$(1.130) $(1.010) -------- -------- -------- -------- -------- ------- -------- -------- -------- -------- Net asset value, end of year....... $ 10.450 $ 9.920 $ 10.840 $10.660 $10.750 $ 10.260 $ 10.330 $10.160 $10.500 $11.400 ======= ======== ======== ======== ======== ======= ======= ======== ======= ======== Total Return(2).................... 11.93% (3.10%) 7.95% 6.26% 13.08% 8.23% 11.17% 5.75% 2.34% 13.12% Ratios/Supplemental Data: Net assets, end of year (000 omitted)................... $143,600 $212,122 $380,917 $371,074 $232,407 $253,537 $237,558 $199,200 $192,947 $ 152,809 Ratio of net expenses to average net assets...................... 0.8% 0.7% 0.7% 0.8% 0.8% 0.8% 0.8% 0.8% 0.6% 0.8% Ratio of net investment income to average net assets.............. 6.1% 5.7% 6.0% 6.9% 7.7% 8.6% 9.0% 8.9% 9.1% 8.9% Portfolio Turnover Rate.......... 21% 33% 22% 6% 18% 25% 28% 23% 7% 12% (1) During the year ended December 31, 1987, the Adviser and the Administrator reduced their fees. Had such actions not been undertaken, the net investment income per share and the ratios would have been as follows: Year Ended December 31, 1987 Net investment income per share.... $ 0.949 ======== Ratios (As a percentage of average net assets): Expenses........................ 0.8% ======== Net investment income........... 8.9% ======== (2) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the payable date.
Year Ended December 31, ---------------------------------------------------------------------------------------- WRIGHT TOTAL RETURN BOND FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 - ------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of year. $ 11.430 $ 13.010 $ 12.610 $12.580 $11.700 $ 12.010 $ 11.430 $11.560 $13.120 $11.930 -------- -------- -------- -------- ------- -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income(1)......... $ 0.758 $ 0.740 $ 0.789 $ 0.830 $ 0.854 $ 0.886 $ 0.923 $ 0.947 $ 0.957 $ 0.996 Net realized and unrealized gain (loss) on investments..... 1.685 (1.580) 0.580 0.030 0.880 (0.312) 0.573 (0.130) (1.367) 1.364 -------- --------- ------- -------- -------- ------- -------- -------- -------- -------- Total income (loss) from investment operations..................... $ 2.443 $ (0.840)$ 1.369 $ 0.860 $ 1.734 $ 0.574 $ 1.496 $ 0.817 $(0.410)$ 2.360 -------- ---------- ------ -------- ------- -------- -------- -------- -------- -------- Less Distributions: From net investment income....... $ (0.753)$ (0.740)$ (0.789)$(0.830) $(0.854) $(0.884)$(0.916) $(0.947) $(1.140)$(1.000) From net realized gain on investments -- -- (0.177) -- -- -- -- -- (0.010) (0.170) In excess of net realized gain on investments..................... -- -- (0.003) -- -- -- -- -- -- -- -------- --------- ------- -------- ------- -------- -------- -------- -------- -------- Total distributions........... $ (0.753)$ (0.740) $(0.969) $(0.830)$(0.854) $(0.884)$(0.916) $(0.947) $(1.150)$(1.170) -------- --------- -------- -------- ------ -------- ------- -------- -------- -------- Net asset value, end of year....... $ 13.120 $ 11.430 $ 13.010 $12.610 $12.580 $ 11.700 $ 12.010 $11.430 $11.560 $13.120 ======= ======== ======== ======= ======== ======== ======== ======= ======== ======== Total Return(2).................... 21.97% (6.57%) 11.03% 7.13% 15.38% 5.29% 13.58% 7.24% (3.13%) 20.54% Ratios/Supplemental Data: Net assets, end of year (000 omitted)................... $122,762 $143,497 $259,513 $217,564 $134,728 $112,408 $ 82,141 $ 31,410 $28,051 $19,278 Ratio of net expenses to average net assets...................... 0.8% 0.8% 0.8% 0.8% 0.8% 0.8% 0.9% 0.9% 0.8% 0.9% Ratio of net investment income to average net assets.............. 6.2% 6.1% 6.0% 6.7% 7.2% 7.7% 7.7% 8.2% 8.2% 7.8% Portfolio Turnover Rate.......... 50% 32% 36% 13% 56% 48% 33% 11% 120% 20% (1) The Principal Underwriter reduced its distribution fees during each of the four years in the period ended December 31, 1989. The Adviser and the Administrator also reduced their fees during the year ended December 31, 1987. Had such actions not been undertaken, the net investment income per share and the ratios would have been as follows: Year Ended December 31, -------------------------------- 1989 1988 1987 1986 -------------------------------- Net investment income per share.... $ 0.911 $ 0.934 $ 0.937 $ 0.981 ======== ======= ======== ======== Ratios (As a percentage of average net assets): Expenses....................... 1.0% 1.0% 1.0% 1.1% ======== ======== ======= ======== Net investment income........... 7.6% 8.1% 8.0% 7.6% ======== ======== ======= ======== (2) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the payable date.
Year Ended December 31, ------------------------------------------------------------------------------ WRIGHT CURRENT INCOME FUND 1995 1994 1993 1992 1991 1990 1989 1988 1987(2) - ------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of year.. $ 9.710 $ 10.750 $10.780 $10.850 $ 10.160 $ 10.090 $ 9.660 $ 9.760 $10.000 -------- -------- -------- ------- -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income(1).......... $ 0.696 $ 0.690 $ 0.728 $ 0.767 $ 0.798 $ 0.859 $ 0.870 $ 0.929 $ 0.628 Net realized and unrealized gain (loss) on investments............ 0.955 (1.040) (0.030) (0.069) 0.690 0.080 0.440 (0.100) (0.240) -------- -------- -------- -------- ------- -------- -------- -------- -------- Total income (loss) from investment operations...................... $ 1.651 $(0.350) $0.698 $ 0.698 $ 1.488 $ 0.939 $ 1.310 $ 0.829 $ 0.388 -------- -------- -------- ---------------- -------- -------- -------- -------- Less Distributions: From net investment income........ $ (0.691)$(0.690)(4)$(0.728)$(0.767)$0.798)$(0.859) $ (0.870)$(0.929) $ 0.628) From net realized gain............ -- -- -- (0.001) -- (0.010) (0.010) -- -- -------- -------- -------- ------- -------- -------- -------- -------- -------- Total distributions.............. $ (0.691)$(0.690) $(0.728)$(0.768) $(0.798)$(0.869) $(0.880)$(0.929) $(0.628) -------- -------- -------- ------- -------- -------- -------- -------- -------- Net asset value, end of year........ $ 10.670 $ 9.710 $10.750 $10.780 $ 10.850 $ 10.160 $10.090 $ 9.660 $ 9.760 ======== ======== ======= ========= ======= ======== ======= ========= ======== Total Return(5)..................... 17.46% (3.30%) 6.59% 6.73% 15.31% 9.85% 14.15% 8.71% 4.06% Ratios/Supplemental Data: Net assets, end of year (000 omitted) $66,345 $84,178 $115,158 $ 99,676$ 65,700 $17,601 $13,925 $10,990 $5,435 Ratio of net expenses to average net assets...................... 0.9% 0.8% 0.8% 0.9% 0.9% 0.9% 0.9% 0.0% 0.0% Ratio of net investment income to average net assets............... 6.8% 6.9% 6.7% 7.2% 7.6% 8.6% 8.8% 9.5% 9.2% Portfolio Turnover Rate........... 26% 10% 4% 13% 5% 10% 15% 12% 2% (1) During each of the five years in the period ended December 31, 1991, the operating expenses of the Fund were reduced either by a reduction of the investment adviser fee, administrator fee, or distribution fee or through the allocation of expenses to the Adviser, or a combination of these. Had such actions not been undertaken, the net investment income per share and the ratios would have been as follows: Year Ended December 31, ------------------------------------------ 1991 1990 1989 1988 1987(2) ------------------------------------------ Net investment income per share.... $ 0.787 $ 0.809 $ 0.821 $ 0.807 $ 0.524 ======== ======== ======= ======== ======== Ratios (As a percentage of average net assets): Expenses....................... 1.0% 1.4% 1.4% 1.8% 1.8%(3) ======== ======== ======= ======== ======== Net investment income........... 7.5% 8.1% 8.3% 7.7% 7.4%(3) ======== ======== ======= ======== ======== (2) Period from April 15, 1987 (commencement of operations) to December 31, 1987. (3) Computed on an annualized basis. (4) Includes distribution in excess of net investment income of $.00013 per share. (5) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the payable date.
Year Ended December 31, THE WRIGHT U.S. TREASURY ------------------------------------------------------------ MONEY MARKET FUND 1995 1994 1993 1992 1991(2) - -------------------------------------------------------------------------------------------------------------------------- Net asset value-- beginning of year........ $1.00 $1.00 $1.00 $1.00 $1.00 Income from Investment Operations: Net investment income(1)................ 0.05212 0.03494 0.02503 0.03221 0.02526 Less Distributions: From net investment income.............. (0.05212) (0.03494) (0.02503) (0.03221) (0.02526) --------- --------- --------- --------- --------- Net asset value, end of year............... $1.00 $1.00 $1.00 $1.00 $1.00 ========= ========= ========= ========= ========= Total Return(4)............................ 5.34% 3.55% 2.53% 3.27% 5.06%(3) Ratios/Supplemental Data: Net assets, end of year (000 omitted)... $45,889 $68,877 $11,011 $13,856 $15,233 Ratio of net expenses to average net assets 0.46%(5) 0.45% 0.45% 0.46% 0.25%(3) Net investment income to average net assets 5.22% 3.77% 2.52% 3.19% 4.95%(3) (1) During each of the years in the five-year period ended December 31, 1995, the Investment Adviser reduced its fee and in certain years was allocated a portion of the operating expenses. Had such actions not been undertaken, net investment income per share and the ratios would have been as follows: Year Ended December 31, --------------------------------------------------------------- 1995 1994 1993 1992 1991(2) --------------------------------------------------------------- Net investment income per share............ $0.05120 $0.03253 $0.01977 $0.02958 $0.02159 ========= ========= ========= ========= ========= Ratios (As a percentage of average net assets): Expenses................................ 0.65% 0.71% 0.97% 0.72% 0.97%(3) ========= ========= ========= ========= ========= Net investment income .................. 5.03% 3.51% 1.99% 2.93% 4.23%(3) ========= ========= ========= ========= ========= (2) For the period from the start of business, June 28, 1991, to December 31, 1991. (3) Annualized. (4) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the payable date. (5) Custodian fees were reduced by credits resulting from cash balances the Trust maintained with the custodian. The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, in accordance with reporting regulations in effect beginning in 1995. If these credits were considered, the ratio of net expenses to average daily net assets would have been reduced to 0.45%.
THE FUNDS AND THEIR INVESTMENT OBJECTIVES AND POLICIES The investment objective and, unless otherwise indicated, policies of each Fund may be changed by the Trustees without a vote of the Fund's shareholders. Any such change of the investment objective of a Fund will be preceded by thirty days advance notice to each shareholder of such Fund. If any changes were made, a Fund might have investment objectives different from the objectives which an investor considered appropriate at the time the investor became a shareholder in such Fund. There is no assurance that any of the Funds will achieve its investment objective. The market price of securities held by the Funds and the net asset value of each Fund's shares will fluctuate in response to stock market developments and, for the WIBC, currency rate fluctuations. THE WRIGHT MANAGED EQUITY TRUST The Wright Managed Equity Trust (the "Equity Trust") consists of four equity funds: Wright Selected Blue Chip Equities Fund (WBC), Wright Junior Blue Chip Equities Fund (WJBC), Wright Quality Core Equities Fund (WQC), and Wright International Blue Chip Equities Fund (WIBC) (the "Equity Funds"). The objective of each Equity Fund is to provide long-term growth of capital and at the same time earn reasonable current income. Securities selected for each Fund except Wright International Blue Chip Equities Fund are drawn from an investment list prepared by Wright Investors' Service, Inc., the Investment Adviser to the Trusts ("Wright" or "Investment Adviser"), and known as The Approved Wright Investment List (the "AWIL"). Securities selected for WIBC are drawn from an investment list prepared by Wright and known as The International Approved Wright Investment List (the "International AWIL"). APPROVED WRIGHT INVESTMENT LIST (AWIL). Wright systematically reviews about 3,000 U.S. companies in its proprietary database in order to identify those which, on the basis of at least five years of audited records, pass the minimum standards of prudence (e.g. the value of the company's assets and shareholders' equity exceeds certain minimum standards and its operations have been profitable during the last three years) and thus are suitable for consideration by fiduciary investors. Companies which meet these requirements (about 1,700 companies) are considered by Wright to be of "investment grade." They may be large or small, may have their securities traded on exchanges or over the counter, and may include companies not currently paying dividends on their shares. THE INTERNATIONAL APPROVED WRIGHT INVESTMENT LIST (INTERNATIONAL AWIL). Wright systematically reviews the about 8,000 non-U.S. companies from 36 countries contained in Wright's WORLDSCOPE(R) database in order to identify those which, on the basis of at least five years of audited records, pass the minimum standards of prudence (e.g. the value of the company's assets and shareholders' equity exceeds certain minimum standards and its operations have been profitable during the last three years) and thus are suitable for consideration by fiduciary investors. Companies which meet these requirements (about 3,000 companies) are considered by Wright to be "investment grade". They may be large or small, may have their securities traded on exchanges or over the counter, and may include companies not currently paying dividends on their shares. These companies are then subjected to extensive analysis and evaluation in order to identify those which meet Wright's 32 fundamental standards of investment quality. Only those companies which meet or exceed all of these standards are eligible for selection by the Wright Investment Committee for inclusion in the AWIL or the International AWIL. See the Statement of Additional Information for a more detailed description of Wright Quality Ratings, the AWIL and the International AWIL. All companies on the AWIL or International AWIL are, in the opinion of Wright, soundly financed "True Blue Chips" with established records of earnings profitability and equity growth. All have established investment acceptance and active, liquid markets for their publicly owned shares. The AWIL will normally be made up of approximately 350 companies. WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC). This Fund seeks to enhance the total investment return (consisting of price appreciation plus income) by providing active management of equity securities of well-established companies meeting strict quality standards. Equity securities are limited to those companies whose current operations reflect defined, quantified characteristics which have been identified by Wright as being likely to provide comparatively superior total investment return. The process selects approximately two-thirds of the WQC companies on the basis of Wright's evaluation of their outlook. Investments are equally weighted. The disciplines which determine sale include preventing individual holdings from exceeding 2 1/2 times their normal value position in this Fund, preventing the retention of the securities of any company which no longer meets the standards of the AWIL, and portfolio holdings which cease to meet the outlook criteria described above. The disciplines which determine purchase provide that new funds, income from securities currently held, and proceeds of sales of securities will be used to increase those positions which at current market values are the furthest below their normal target values and to purchase companies which become eligible for the portfolio. The Fund will, under normal market conditions, invest at least 80% of its net assets in Selected Blue Chip equity securities, including common stocks, preferred stocks and securities convertible into stock. This is a fundamental policy that can only be changed with shareholder approval. However, for temporary defensive purposes the Fund may hold cash or invest more than 20% of its net assets in the short-term debt securities described under "Other Investment Policies -- Defensive Investments." WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC). This Fund seeks to enhance the total investment return (consisting of price appreciation plus income) by providing management of equity securities of smaller companies still experiencing their rapid growth period. Equity securities selected are limited to those companies selected for the WQC Fund which when sorted by stock market capitalization represent the smaller companies on the list. Investments are equally weighted. The Fund will, under normal market conditions, invest at least 80% of its net assets in Junior Blue Chip equity securities, including common stocks, preferred stocks and securities convertible into stock. This is a fundamental policy that can only be changed with shareholder approval. However, for temporary defensive purposes the Fund may hold cash or invest more than 20% of its net assets in the short-term debt securities described under "Other Investment Policies -- Defensive Investments." Somewhat higher volatility of market pricing and greater variability of individual stock investment returns can be expected in this Fund as compared to either Wright Quality Core Equities Fund or Wright Selected Blue Chip Equities Fund, which invest in larger companies. WRIGHT QUALITY CORE EQUITIES FUND (WQC). This Fund seeks to enhance total investment return (consisting of price appreciation plus income) by providing management of a broadly diversified portfolio of equity securities of well-established companies meeting strict quality standards. The Fund will, through continuous professional investment supervision by Wright, pursue these objectives by investing in a diversified portfolio of common stocks of what are believed to be high-quality, well-established and profitable companies. The Fund will, under normal market conditions, invest at least 80% of its net assets in equity securities, including common stocks, preferred stocks and securities convertible into stock. This is a fundamental policy that can only be changed with shareholder approval. However, for temporary defensive purposes the Fund may hold cash or invest more than 20% of its net assets in the short-term debt securities described under "Other Investment Policies -- Defensive Investments." This Fund is quality oriented and is suitable for a total equity account or as a base portfolio for accounts with multiple objectives. Investments, except for temporary defensive investments, will be made solely in companies on the AWIL. In selecting companies from the AWIL for this portfolio, the Investment Committee of Wright selects, based on quantitative formulae, those companies which are expected to do better over the intermediate term. The quantitative formulae take into consideration factors such as over/under valuation and compatibility with current market trends. Investments in the portfolio are equally weighted in the selected securities. The disciplines which determine sale include preventing individual holdings from exceeding 2 1/2 times their normal value position in this Fund and requiring the sale of the securities of any company which no longer meets the standards of the AWIL. Also, portfolio holdings which fall in the unfavorable category based on the quantitative formulae described above are generally sold. The disciplines which determine purchase provide that new funds, income from securities currently held, and proceeds of sales of securities will be used to increase those positions which at current market are the furthest below their normal target values and to purchase companies which become eligible for the portfolio as described above. WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC). The Fund seeks to enhance the total investment return (consisting of price appreciation plus income) by providing management of a broadly diversified portfolio of equity securities of well-established, non-U.S. companies meeting strict quality standards. The Fund will, through continuous professional investment supervision by Wright, pursue these objectives by investing in a diversified portfolio of equity securities of high-quality, well-established and profitable non-U.S. companies having their principal business activities in at least three different countries outside the United States. The Fund will, under normal market conditions, invest at least 80% of its net assets in International Blue Chip equity securities, including common stocks, preferred stocks and securities convertible into stock. This is a fundamental policy that can only be changed with shareholder approval. International Blue Chip equity securities are those which are included in the International AWIL, as described above. However, for temporary defensive purposes the Fund may hold cash or invest more than 20% of its net assets in the short-term debt securities described under "Other Investment Policies -- Defensive Investments." The Fund may purchase equity securities traded on a securities market of the country in which the company is located or other foreign securities exchanges, or it may purchase American Depositary Receipts ("ADRs") traded in the United States. Purchases of shares of the Fund are suitable for investors wishing to diversify their portfolios by investing in non-U.S. companies or for investors who simply wish to participate in non-U.S. investments. Although the value of the Fund's net assets per share will be calculated in U.S. dollars, fluctuations in foreign currency exchange rates may affect the value of an investment in the Fund. The disciplines which determine sale include disposing of equity securities of any company which no longer meets the quality standards of the International AWIL. The disciplines which determine purchase provide that new funds, income from the Fund's portfolio securities and proceeds of sales of the Fund's portfolio securities will be used to increase those positions which at current market value are the furthest below their normal target values. THE WRIGHT MANAGED INCOME TRUST The Wright Managed Income Trust (the "Income Trust") consists of four fixed income funds, Wright U.S. Treasury Fund (WUSTB), Wright U.S. Treasury Near Term Fund (WNTB), Wright Total Return Bond Fund (WTRB), Wright Current Income Fund (WCIF) (the "Income Funds"), and a money market fund, Wright U.S. Treasury Money Market Fund. Each Income Fund's investment objective is to provide a high level of return consistent with the quality standards and average maturity for such Fund. Each Fund seeks to achieve its objective through the investment policies described below. WRIGHT U.S. TREASURY FUND (WUSTB). The Fund invests in U.S. Treasury bills, notes and bonds. Under normal market conditions, the Fund will invest substantially all, but in any case at least 65%, of its total assets in such U.S. Treasury obligations and in repurchase agreements with respect to such obligations. The Fund will not invest in mortgage-related securities. WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB). The Fund invests in U.S. Treasury obligations with an average weighted maturity of less than five years. This Fund is designed to appeal to the investor seeking a high level of income that is normally somewhat less variable and normally somewhat higher than that available from short-term U.S. Treasury money market securities and who is also seeking to limit fluctuation of capital (i.e., compared with longer term U.S. Treasury securities). Portfolio securities will consist entirely of U.S. Treasury obligations, such as U.S. Treasury bills, notes and bonds. WRIGHT TOTAL RETURN BOND FUND (WTRB). The Fund invests in bonds or other high-grade debt securities selected by the Investment Adviser with a weighted average maturity that, in the Investment Adviser's judgment, produces the best total return, i.e., the highest total of ordinary income plus capital appreciation. There are no limits on the minimum or maximum weighted average maurity of the Fund's portfolio or on the maturity of any individual security. Accordingly, investment selections may differ depending on the particular phase of the interest rate cycle. Assets of this Fund may be invested in U.S. Government and agency obligations, certificates of deposit of federally insured banks and corporate obligations rated at the date of investment "A" or better (high grade) by Standard & Poor's Ratings Group ("S&P") or by Moody's Investors Service, Inc. ("Moody's") or, if not rated by such rating organizations, of comparable quality as determined by Wright pursuant to guidelines established by the Trustees. In any case, they must also meet Wright Quality Rating Standards. The Fund will dispose of securities downgraded below A. WRIGHT CURRENT INCOME FUND (WCIF). The Fund invests primarily in debt obligations issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities, mortgage-related securities of governmental or corporate issuers and corporate debt securities. The U.S. Government securities in which the Fund may invest include direct obligations of the U.S. Government, such as bills, notes, and bonds issued by the U.S. Treasury; obligations of U.S. Government agencies and instrumentalities secured by the full faith and credit of the U.S. Treasury, such as securities of the Government National Mortgage Association (GNMA) or the Export-Import Bank; obligations secured by the right to borrow from the U.S. Treasury, such as securities issued by the Federal Financing Bank or the Student Loan Marketing Association; and obligations backed only by the credit of the government agency itself, such as securities of the Federal Home Loan Bank, the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC). The Fund may invest in mortgage-related securities issued by certain of the agencies or federally chartered corporations listed above. These include mortgage-backed securities of GNMA, FNMA and FHLMC, debentures and short-term notes issued by FNMA and collateralized mortgage obligations issued by FHLMC. The Fund expects to concentrate its investments in Ginnie Mae pass-through securities guaranteed by the Government National Mortgage Association (GNMA or Ginnie Mae). These securities are backed by a pool of mortgages which pass through to investors the principal and interest payments of homeowners. Ginnie Mae guarantees that investors will receive timely principal payments even if homeowners do not make their mortgage payments on time. See "Other Investment Policies -- Mortgage-Related Securities" below. The corporate debt securities in which the Fund may invest include commercial paper and other short-term instruments rated A-1 by S&P or P-1 by Moody's. The Fund may invest in unrated debt securities if these are determined by Wright pursuant to guidelines established by the Trustees to be of a quality comparable to that of the rated securities in which the Fund may invest. All of the corporate debt securities purchased by the Fund must meet Wright Quality Rating Standards. The Fund may enter into repurchase agreements with respect to any securities in which it may invest. WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM). The Fund's objective is to provide as high a rate of current income as possible consistent with the preservation of capital and maintenance of liquidity. The Fund will pursue its objective by investing exclusively in securities of the U.S. Government and its agencies that are backed by the full faith and credit of the U.S. Government ("U.S. Government securities") and in repurchase agreements relating to such securities. At least 80% of the Fund's assets will be invested in direct obligations of the U.S. Treasury, including Treasury bills, notes and bonds, which differ only in their interest rates, maturities and times of issuance. Up to 20% of the Fund's net assets may be held in cash or invested in repurchase agreements. However, at the present time, the Fund intends to invest only in U.S. Treasury bills, notes and bonds and does not intend to invest in repurchase agreements. The Fund will limit its portfolio to investments maturing in 13 months or less and maintain a weighted average maturity of not more than 90 days. The Fund will seek to maintain a net asset value of $1.00 per share, but there is no assurance that the Fund will be able to do so. The yield of the Fund will fluctuate in response to changes in market conditions and interest rates. The Fund will limit its investments to legal investments and investment practices for federal credit unions as set forth in the Federal Credit Union Act and the National Credit Union Administration Regulations. The Fund will provide all federal credit union shareholders of record with sixty (60) days' written notice prior to changing such investment policy. None of the Funds is intended to be a complete investment program, and the prospective investor should take into account his objectives and other investments when considering the purchase of any Fund's shares. The Funds cannot eliminate risk or assure achievement of their objectives. OTHER INVESTMENT POLICIES Each Trust has adopted certain fundamental investment restrictions which are enumerated in detail in the Statement of Additional Information and which may be changed as to a Fund only by the vote of a majority of the Fund's outstanding voting securities. Among these restrictions, a Fund may not borrow money in excess of 1/3 of the current market value of the net assets of a Fund (excluding the amount borrowed). Also, each Fund will not invest more than 5% of a Fund's total assets taken at current market value in the securities of any one issuer, purchase more than 10% of the voting securities of any one issuer or invest 25% or more of the Fund's total assets in the securities of issuers in the same industry. There is, however, no limitation in respect to investments in obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities. No Fund may invest more than 15% of its net assets (10% for Wright U.S. Treasury Money Market Fund) in illiquid investments. None of the Funds has any current intention of borrowing for leverage or speculative purposes. Wright U.S. Treasury Money Market Fund may not invest more than 5% of its total assets (taken at amortized cost) in securities issued by any one issuer or more than 10% of its total assets in securities subject to puts from or issued by any one issuer (except U.S. Government securities and repurchase agreements collateralized by such securities). However, a single investment may exceed such limit if such security (i) is rated in the highest rating category of the requisite number of nationally recognized statistical rating organizations or, if unrated, is determined to be of comparable quality and (ii) is held for not more than three business days. In addition, the Fund may not invest more than 5% of its total assets (taken at amortized cost) in securities of issuers not in such highest rating category or, if unrated, of comparable quality. An investment in any one such issuer is limited to no more than 1% of such total assets or $1 million, whichever is greater. REPURCHASE AGREEMENTS. Each of the Funds may enter into repurchase agreements to the extent permitted by its investment policies. A repurchase agreement is an agreement under which the seller of securities agrees to repurchase and the Fund agrees to resell the securities at a specified time and price. A Fund may enter into repurchase agreements only with large, well-capitalized banks or government securities dealers that meet Wright credit standards. In addition, such repurchase agreements will provide that the value of the collateral underlying the repurchase agreement will always be at least equal to the repurchase price, including any accrued interest earned under the repurchase agreement. In the event of a default or bankruptcy by a seller under a repurchase agreement, the Fund will seek to liquidate such collateral. However, the exercise of the right to liquidate such collateral could involve certain costs, delays and restrictions and is not ultimately assured. To the extent that proceeds from any sale upon a default of the obligation to repurchase are less than the repurchase price, the Fund could suffer a loss. FORWARD COMMITMENTS AND WHEN-ISSUED SECURITIES. Each Fund may purchase when-issued securities and make contracts to purchase or sell securities for a fixed price at a future date beyond customary settlement time. A Fund is required to hold and maintain in a segregated account with the Fund's custodian or subcustodian until the settlement date, cash or other high-grade liquid debt obligations in an amount sufficient to meet the purchase price. Alternatively, a Fund may enter into offsetting contracts for the forward sale of other securities that it owns. Securities purchased or sold on a when-issued or forward commitment basis involve a risk of loss if the value of the security to be purchased declines prior to the settlement date or if the value of the security to be sold increases prior to the settlement date. Although a Fund would generally purchase securities on a when-issued or forward commitment basis with the intention of acquiring securities for its portfolio, each Fund may dispose of a when-issued security or forward commitment prior to settlement if the Investment Adviser deems it appropriate to do so. DEFENSIVE INVESTMENTS. During periods of unusual market conditions, when Wright believes that investing for temporary defensive purposes is appropriate, all or a portion of each Fund's assets may be held in cash or invested in short-term obligations. Short-term obligations include but are not limited to short-term obligations issued or guaranteed as to interest and principal by the U.S. Government or any agency or instrumentality thereof (including repurchase agreements collateralized by such securities); commercial paper which at the date of investment is rated A-1 by S&P or P-1 by Moody's, or, if not rated by such rating organizations, is deemed by Wright pursuant to procedures established by the Trustees to be of comparable quality; short-term corporate obligations and other debt instruments which at the date of investment are rated AA or better by S&P or Aa or better by Moody's or, if unrated by such rating organizations, are deemed by Wright pursuant to procedures established by the Trustees to be of comparable quality; and certificates of deposit, bankers' acceptances and time deposits of domestic banks which are determined to be of high quality by Wright pursuant to procedures established by the Trustees. The Funds may invest in instruments and obligations of banks that have other relationships with the Funds, Wright or Eaton Vance Management, the Trusts' Administrator ("Eaton Vance" or "Administrator"). No preference will be shown towards investing in banks which have such relationships. MORTGAGE-RELATED SECURITIES. WTRB and WCIF may invest in mortgage-related securities, including collateralized mortgage obligations ("CMOs") and other derivative mortgage-related securities. These securities will either be issued by the U.S. Government or one of its agencies or instrumentalities or, if privately issued, supported by mortgage collateral that is insured, guaranteed or otherwise backed by the U.S. Government or its agencies or instrumentalities. THE FUNDS DO NOT INVEST IN THE RESIDUAL CLASSES OF CMOS, STRIPPED MORTGAGE-RELATED SECURITIES, LEVERAGED FLOATING RATE INSTRUMENTS OR INDEXED SECURITIES. Mortgage-related securities represent participation interests in pools of adjustable and fixed mortgage loans. Unlike conventional debt obligations, mortgage-related securities provide monthly payments derived from the monthly interest and principal payments (including any prepayments) made by the individual borrowers on the pooled mortgage loans. The mortgage loans underlying mortgage-related securities are generally subject to a greater rate of principal prepayments in a declining interest rate environment and to a lesser rate of principal prepayments in an increasing interest rate environment. Under certain interest and prepayment rate scenarios, a Fund may fail to recover the full amount of its investment in mortgage-related securities purchased at a premium, notwithstanding any direct or indirect governmental or agency guarantee. The Fund may realize a gain on mortgage-related securities purchased at a discount. Since faster than expected prepayments must usually be invested in lower yielding securities, mortgage-related securities are less effective than conventional bonds in "locking in" a specified interest rate. Conversely, in a rising interest rate environment, a declining prepayment rate will extend the average life of many mortgage-related securities. Extending the average life of a mortgage-related security increases the risk of depreciation due to future increases in market interest rates. A Fund's investments in mortgage-related securities may include conventional mortgage pass-through securities and certain classes of multiple class CMOs. Senior CMO classes will typically have priority over residual CMO classes as to the receipt of principal and/or interest payments on the underlying mortgages. The CMO classes in which a Fund may invest include sequential and parallel pay CMOs, including planned amortization class ("PAC") and target amortization class ("TAC") securities. Different types of mortgage-related securities are subject to different combinations of prepayment, extension, interest rate and/or other market risks. Conventional mortgage pass-through securities and sequential pay CMOs are subject to all of these risks, but are typically not leveraged. PACs, TACs and other senior classes of sequential and parallel pay CMOs involve less exposure to prepayment, extension and interest rate risk than other mortgage-related securities, provided that prepayment rates remain within expected prepayment ranges or "collars." LENDING PORTFOLIO SECURITIES. All of the Funds in the Equity Trust may seek to increase total return by lending portfolio securities to broker-dealers or other institutional borrowers. Under present regulatory policies of the Securities and Exchange Commission, such loans are required to be continuously secured by collateral in cash, cash-equivalents and U.S. Government securities held by the Fund's custodian and maintained on a current basis at an amount at least equal to the market value of the securities loaned, which will be marked to market daily. During the existence of a loan, a Fund will continue to receive the equivalent of the interest or dividends paid by the issuer on the securities loaned and will also receive a fee, or all or a portion of the interest, if any, on investment of the collateral. However, the Fund may at the same time pay a transaction fee to such borrowers and administrative expenses, such as finders fees to third parties. As with other extensions of credit there are risks of delay in recovery or even loss of rights in the securities loaned if the borrower of the securities fails financially. However, the loans will be made only to organizations deemed by the Investment Adviser to be of good standing and when, in the judgment of the Investment Adviser, the consideration which can be earned from securities loans of this type justifies the attendant risk. The financial condition of the borrower will be monitored by the Investment Adviser on an ongoing basis and collateral values will be continuously maintained at no less than 100% by "marking to market" daily. If the Investment Adviser decides to make securities loans, it is intended that the value of the securities loaned would not exceed 30% of the Fund's total assets. FOREIGN INVESTMENT RISK. Investing in securities of foreign companies and governments involves certain considerations in addition to those arising when investing in domestic securities. These considerations include the possibility of currency exchange rate fluctuations and revaluation of currencies, the existence of less publicly available information about foreign issuers, different accounting, auditing and financial reporting standards, less stringent securities regulation, non-negotiable brokerage commissions, different tax provisions, political or social instability, war or expropriation. Moreover, foreign stock and bond markets generally are not as developed and efficient as those in the United States and, therefore, the volume and liquidity in those markets may be less, and the volatility of prices may be greater, than in U.S. markets. Settlement of transactions on foreign markets may be delayed beyond what is customary in U.S. markets. These considerations generally are of greater concern in developing countries. The value in U.S. dollars of investments quoted or denominated in foreign currencies will be affected by changes in currency exchange rates. As one way of managing currency exchange rate risk, the WIBC Fund may enter into forward foreign currency exchange contracts, which are agreements to purchase or sell a designated amount of foreign currencies at a specified price and date. The Fund will usually enter into these contracts to fix the U.S. dollar value of a security it has agreed to buy or sell. The Fund may also use these contracts to hedge the U.S. dollar value of a security it already owns, particularly if it expects a decline in the value of the currency in which the foreign security is quoted or denominated. Although the Fund will attempt to benefit from using forward contracts, the success of its hedging strategy will depend on the Investment Adviser's ability to predict accurately the future exchange rate between foreign currencies and the U.S. dollar. The ability to predict the direction of currency exchange rates involves skills different from those used in selecting securities. WIBC may hold foreign currency or short-term U.S. or foreign government securities pending investment in foreign securities. THE INVESTMENT ADVISER The Winthrop Corporation ("Winthrop") has been engaged to act as investment adviser to the Trusts pursuant to Investment Advisory Contracts. Pursuant to a service agreement effective February 1, 1996 between Winthrop and its wholly-owned subsidiary, Wright Investors' Service, Inc. ("Wright), Wright, acting under the general supervision of the Trustees, furnishes each Fund with investment advice and management services. Winthrop supervises Wright's performance of this function and retains its contractual obligations under its Investment Advisory Contracts. The address of both Winthrop and Wright is 1000 Lafayette Boulevard, Bridgeport, Connecticut. The Trustees are responsible for the general oversight of the conduct of each Funds' business. Wright is a leading independent international investment management and advisory firm which, together with its parent, Winthrop, has more than 30 years' experience. Its staff of over 150 people includes a highly respected team of 65 economists, investment experts and research analysts. Wright manages assets for bank trust departments, corporations, unions, municipalities, eleemosynary institutions, professional associations, institutional investors, fiduciary organizations, family trusts and individuals as well as mutual funds. Wright operates one of the world's largest and most complete databases of financial information on 13,000 domestic and international corporations. The estate of John Winthrop Wright is the controlling shareholder of Winthrop. At the end of 1995, Wright managed approximately $4 billion of assets. Under the Investment Advisory Contracts, each Fund is required to pay Winthrop a monthly advisory fee calculated at the annual rates (as a percentage of average daily net assets) set forth in the table below. Effective February 1, 1996, Winthrop will cause the Funds to pay to Wright the entire amount of the advisory fee payable by each Fund under its Investment Advisory Contract with Winthrop. The following table also lists each Fund's aggregate net assets at December 31, 1995 and the advisory fee rate paid for the fiscal year ended December 31, 1995. A N N U A L % A D V I S O R Y F E E R A T E S ------------------------------------------------------------- Aggregate Fee Rate Paid Under $100 Mil.to $250 Mil.to $500 Mil.to Over Net Assets the Fiscal Year $100 Mil. $250 Mil. $500 Mil. $1 Billion $1 Billion at 12/31/95 Ended 12/31/95 - ----------------------------------------------------------------------------------------------------------------------------------- Wright Selected Blue Chip Equities Fund (WBC)0.55% 0.69% 0.67% 0.63% 0.58% $217,587,944 0.62% Wright Junior Blue Chip Equities Fund (WJBC) 0.55% 0.69% 0.67% 0.63% 0.58% 25,993,458 0.55% Wright Quality Core Equities Fund (WQC) 0.45% 0.59% 0.57% 0.53% 0.48% 49,134,274 0.45% Wright International Blue Chip Equities Fund (WIBC) 0.75% 0.79% 0.77% 0.73% 0.68% 237,175,946 0.77% Wright U.S. Treasury Fund (WUSTB) 0.40% 0.46% 0.42% 0.38% 0.33% 15,156,244 0.40%(1) Wright U.S. Treasury Near Term Fund (WNTB) 0.40% 0.46% 0.42% 0.38% 0.33% 143,599,834 0.43% Wright Total Return Bond Fund (WTRB) 0.40% 0.46% 0.42% 0.38% 0.33% 122,761,602 0.41% Wright Current Income Fund (WCIF) 0.40% 0.46% 0.42% 0.38% 0.33% 66,345,173 0.40% Wright U.S. Treasury Money Market Fund (WTMM) 0.35% 0.32% 0.32% 0.30% 0.30% 45,888,947 0.35%(2) - ---------------------------------------------------------------------------------------------------------------------------------- (1) To enhance the net income of the Fund, Wright made a reduction of its advisory fee in the amount of $17,515 or from 0.40% to 0.29%. (2) To enhance the net income of the Fund, Wright made a reduction of the advisory fee in the amount of $87,656 or from 0.35% to 0.16%.
The combined advisory and administration fee rates paid by WBC, WJBC and WIBC are believed to be higher than those paid by most other mutual funds. This higher fee is attributable to the specialized expertise required to implement each Fund's investments and is comparable to the fees paid by many other funds with similar investment objectives and policies. Shareholders of the Funds who are also advisory clients of Wright may have agreed to pay Wright a fee for such advisory services. Wright does not intend to exclude from the calculation of the investment advisory fees payable to Wright by such advisory clients the portion of the advisory fee payable by the Funds. Accordingly, a client may pay an advisory fee to Wright in accordance with Wright's customary investment advisory fee schedule charged to investment advisory clients and at the same time, as a shareholder in a Fund, bear its share of the advisory fee paid by the Fund to Wright as described above. Pursuant to the Investment Advisory Contracts, Wright also furnishes for the use of each Fund office space and all necessary office facilities, equipment and personnel for servicing the investments of each Fund. Each Fund is responsible for the payment of all expenses relating to its operations other than those expressly stated to be payable by Wright under its Investment Advisory Contracts. Wright places the portfolio security transactions for each Fund, which in some cases may be effected in block transactions which include other accounts managed by Wright. Wright provides similar services directly for bank trust departments. Wright seeks to execute the Funds' portfolio security transactions on the most favorable terms and in the most effective manner possible. Subject to the foregoing, Wright may consider sales of shares of the Funds or of other investment companies sponsored by Wright as a factor in the selection of broker-dealer firms to execute such transactions. An Investment Committee of senior officers, all of whom are experienced analysts, exercises disciplined direction and control over all investment selections, policies and procedures for each Fund. The Committee, following highly disciplined buy-and-sell rules, makes all decisions for the selection, purchase and sale of all securities. The members of the Committee are as follows: PETER M. DONOVAN, CFA, President and Chief Executive Officer of Wright. Mr. Donovan received a BA Economics, Goddard College and joined Wright from Jones, Kreeger & Co., Washington, DC in 1966. Mr. Donovan is the president of The Wright Managed Blue Chip Series Trust, The Wright Managed Income Trust, The Wright Managed Equity Trust and The Wright EquiFund Equity Trust. He is also director of EquiFund - Wright National Equity Fund, a Luxembourg SICAV. He is a member of the New York Society of Security Analysts and the Hartford Society of Financial Analysts. JUDITH R. CORCHARD, Chairman of the Investment Committee, Executive Vice President-Investment Management of Wright. Ms. Corchard attended the University of Connecticut and joined Wright in 1960. She is a member of the New York Society of Security Analysts and the Hartford Society of Financial Analysts. JATIN J. MEHTA, CFA, Executive Counselor and Director of Education of Wright. Mr. Mehta received a BS Civil Engineering, University of Bombay, India and an MBA from the University of Bridgeport. Before joining Wright in 1969, Mr. Mehta was an executive of the Industrial Credit Investment Corporation of India, a World Bank agency in India for financial assistance to private industry. He is a Trustee of The Wright Managed Blue Chip Series Trust. He is a member of the New York Society of Security Analysts and the Hartford Society of Financial Analysts. HARIVADAN K. KAPADIA, CFA, Senior Vice President - Investment Analysis and Information of Wright. Mr. Kapadia received a BA (hon.) Economics and Statistics and MA Economics, University of Baroda, India and an MBA from the University of Bridgeport. Before joining Wright in 1969, Mr. Kapadia was Assistant Lecturer at the College of Engineering and Technology in Surat, India and Lecturer, B.J. at the College of Commerce & Economics, VVNagar, India. He has published the textbooks: "Elements of Statistics," "Statistics," "Descriptive Economics," and "Elements of Economics." He was appointed Adjunct Professor at the Graduate School of Business, Fairfield University in 1981. He is a member of the New York Society of Security Analysts and the Hartford Society of Financial Analysts. MICHAEL F. FLAMENT, CFA, Senior Vice President - Investment and Economic Analysis of Wright. Mr. Flament received a BS Mathematics, Fairfield University; MA Mathematics, University of Massachusetts and an MBA Finance, University of Bridgeport. He is a member of the New York Society of Security Analysts and the Hartford Society of Financial Analysts. JAMES P. FIELDS, CFA, Vice President and Investment Officer of Wright. Mr. Fields received a B.S. Accounting, Fairfield University and an MBA Finance from Pace University. He joined Wright in 1982 and is also a member of the New York Society of Security Analysts. Wright is also the investment adviser to the funds in The Wright Managed Blue Chip Series Trust and The Wright EquiFund Equity Trust (the "Wright Funds"). THE ADMINISTRATOR Each Trust engages Eaton Vance Management ("Eaton Vance" or the "Administrator") as its administrator under an Administration Agreement. Under the Administration Agreement, Eaton Vance is responsible for managing the legal and business affairs of each Fund, subject to the supervision of the Trustees. Eaton Vance's services include recordkeeping, preparation and filing of documents required to comply with federal and state securities laws, supervising the activities of the custodian and transfer agent, providing assistance in connection with the Trustees' and shareholders' meetings and other administrative services necessary to conduct each Fund's business. Eaton Vance will not provide any investment management or advisory services to the Funds. For its services under the Administration Agreement, Eaton Vance receives monthly administration fees at the annual rates (as a percentage of average daily net assets) as follows: ANNUAL % ADMINISTRATION FEE RATES Under $100 Mil. to $250 Mil. to Over $100 Mil. $250 Mil. $500 Mil. $500 Mil. - --------------------------------------------------------- THE WRIGHT MANAGED EQUITY TRUST 0.20% 0.06% 0.03% 0.02% - --------------------------------------------------------- THE WRIGHT MANAGED INCOME TRUST 0.10% 0.04% 0.03% 0.02% THE WRIGHT U.S. TREASURY MONEY MARKET FUND 0.07% 0.03% 0.03% 0.02% - --------------------------------------------------------- For the fiscal year ended December 31, 1995, each Fund paid administration fees (as an annualized percentage of average daily net assets) as follows: WBC (0.13%), WJBC (0.20%), WQC (0.20%), WIBC (0.12%), WUSTB (0.10%), WNTB (0.07%), WTRB (0.09%), WCIF (0.10%) and WTMM (0.07%). Eaton Vance, its affiliates and its predecessor companies have been primarily engaged in managing assets of individuals and institutional clients since 1924 and managing, administering and marketing mutual funds since 1931. Total assets under management are over $16 billion. Eaton Vance is a wholly-owned subsidiary of Eaton Vance Corp., ("EVC"), a publicly held holding company. DISTRIBUTION EXPENSES In addition to the fees and expenses payable by each Fund in accordance with the Investment Advisory Contracts and Administration Agreements, each Fund, except Wright U.S. Treasury Money Market Fund, pays for certain expenses pursuant to a Distribution Plan (the "Plans") as adopted by the Trusts and designed to meet the requirements of Rule 12b-1 under the Investment Company Act of 1940 (the "1940 Act") and Article III, Section 26 of the Rules of Fair Practice of the National Association of Securities Dealers, Inc. (the "NASD"). The Trusts' Plans provide that monies may be spent by a Fund on any activities primarily intended to result in the sale of each Fund's shares, including, but not limited to, compensation paid to and expenses incurred by officers, Trustees, employees or sales representatives of the Trusts, including telephone expenses, the printing of prospectuses and reports for other than existing shareholders, preparation and distribution of sales literature, and advertising of any type. The expenses covered by the Trusts' Plans may include payments to any separate distributors under agreement with the Trusts for activities primarily intended to result in the sale of the Trusts' shares. The Trusts have entered into a distribution contract with Wright Investors' Service Distributors, Inc. ("WISDI" or the "Principal Underwriter"), a wholly-owned subsidiary of Winthrop. Under the Plan, it is intended that each Fund will pay 2/10 of 1% of its average daily net assets to WISDI. Subject to the 2/10 of 1% per annum limitation imposed by the Plans, each Fund may pay separately for expenses of any other activities primarily intended to result in the sale of its shares. WTMM does not pay WISDI any compensation under its Distribution Contract. The Principal Underwriter may use the distribution fee for its expenses of distributing each Fund's shares, including allocable overhead expenses. Any distribution expenses exceeding the amounts paid by the Funds to the Principal Underwriter were not incurred by the Principal Underwriter but were paid by Wright from its own assets. Distribution expenses not specifically attributable to a particular Fund are allocated among the Funds based on the amount of sales of each Fund's shares resulting from the Principal Underwriter's distribution efforts and expenditures. If the distribution fee exceeds the Principal Underwriter's expenses, the Principal Underwriter may realize a profit from these arrangements. The Trusts' Plans are compensation plans. If a Plan is terminated, the Funds will stop paying the distribution fee and the Trustees will consider other methods of financing the distribution of the Funds' shares. For the fiscal year ended December 31, 1995, each Fund in The Wright Managed Equity Trust made distribution expense payments (as an annualized percentage of average daily net assets) as follows: WBC (0.20%), WJBC (0.09%), WQC (0.18%) and WIBC (0.20%). To enhance the net income of the WJBC and WQC Funds, the Principal Underwriter reduced its fee by $35,853 and $11,656, respectively. For the fiscal year ended December 31, 1995, each Fund in The Wright Managed Income Trust, except Wright U.S. Treasury Money Market Fund, made distribution expense payments (as an annualized percentage of average daily net assets as follows: WUSTB (0.00%); WNTB (0.20%); WTRB (0.20%) and WCIF (0.20%). For WUSTB, WISDI reduced its fee in the full amount. HOW THE FUNDS VALUE THEIR SHARES The shares of each Fund, except Wright U.S. Treasury Money Market Fund, are valued once on each day the New York Stock Exchange (the "NYSE" or "Exchange") is open as of the close of regular trading on the Exchange - normally 4:00 p.m. New York time. The net asset value is determined by Investors Bank & Trust Company ("IBT"), the Funds' custodian (as agent for the Funds) in the manner authorized by the Trustees. Such determination is accomplished by dividing the number of outstanding shares of each Fund into its net worth (the excess of its assets over its liabilities). Securities listed on securities exchanges or in the NASDAQ National Market are valued at closing sale prices. Unlisted or listed securities, for which closing sale prices are not available, are valued at the mean between latest bid and asked prices. Fixed income securities for which market quotations are readily available are valued on the basis of valuations supplied by a pricing service. Securities for which market quotations are unavailable, restricted securities, and other assets are valued at their fair value as determined in good faith by or at the direction of the Trustees. (These valuation methods apply to debt and fixed-income as well as to equity securities.) Short-term obligations maturing in 60 days or less are valued at amortized cost, which approximates market value. The net asset value per share of Wright U.S. Treasury Money Market Fund is computed three times on each day the Exchange is open, at noon, at 3:00 p.m. and as of the close of regular trading on the Exchange - normally 4:00 p.m. New York time. The net asset value is determined by the Fund's custodian (as agent for the Fund) in the manner authorized by the Trustees. The Trustees have determined that it is in the best interests of the Fund and its shareholders to maintain a stable price of $1.00 per share by valuing portfolio securities by the amortized cost method in accordance with a rule of the Securities and Exchange Commission. Portfolio securities traded on more than one United States national securities exchange or foreign securities exchange are valued by WIBC Fund's custodian at the last sale price on the business day as of which such value is being determined at the close of the exchange representing the principal market for such securities, unless those prices are deemed by Wright to be not representative of market values. Securities which cannot be valued at such prices, will be valued by Wright at fair value in accordance with procedures adopted by the Trustees. Foreign currencies, options on foreign currencies and forward foreign currency contracts will be valued at their last sales price as determined by published quotations or as supplied by banks that deal in such instruments. The value of all assets and liabilities expressed in foreign currencies will be converted into U.S. dollar value at the mean between the buying and selling rates of such currencies against U.S. dollars last quoted by any major bank. If such quotations are not available, the rate of exchange will be determined in good faith by or under procedures established by the Trustees. Securities traded over-the-counter, unlisted securities and listed securities for which closing sale prices are not available are valued at the mean between latest bid and asked prices or, if such bid and asked prices are not available, at prices supplied by a pricing agent selected by Wright, unless such prices are deemed by Wright not to be representative of market values at the close of business of the NYSE. Securities for which market quotations are unavailable, restricted securities, securities for which prices are deemed by Wright not to be representative of market values, and other assets will be appraised at their fair value as determined in good faith according to guidelines established by the Trustees. Short-term obligations with remaining maturities of sixty days or less are valued at amortized cost, which approximates market value. Options traded on exchanges and over-the-counter will be valued at the last current sales price on the market where such option is principally traded. Over-the-counter and listed options for which a last sales price is not available will be valued on the basis of quotations supplied by dealers who regularly trade such options or if such quotations are not available or deemed by Wright not to be representative of market values, at fair value. Trading in securities on European and Far Eastern securities exchanges and over-the-counter markets is normally completed well before the close of business on each business day in New York (i.e., a day on which the NYSE is open for trading). In addition, European or Far Eastern securities trading generally or in a particular country or countries may not take place on all business days in New York. Furthermore, trading takes place in Japanese markets on certain Saturdays and in various foreign markets on days which are not business days in New York and on which WIBC Fund's net asset value is not calculated. Such calculation does not take place contemporaneously with the determination of the prices of the majority of the portfolio securities used in such calculation. Events affecting the values of portfolio securities that occur between the time their prices are determined and the close of the NYSE will not be reflected in WIBC Fund's calculation of net asset value unless Wright deems that the particular event would materially affect net asset value, in which case an adjustment will be made. HOW TO BUY SHARES Shares of each Fund are sold without a sales charge at the net asset value next determined after the receipt of a purchase order as described below. The minimum initial investment per Fund is $1,000, although this will be waived for investments in 401(k) tax-sheltered retirement plans or for Bank Draft Investing accounts, which may be established with an investment of $50 or more. There is no minimum amount required for subsequent purchases, except that subsequent investments for Bank Draft Investing accounts must be at least $50. Each Fund reserves the right to reject any order for the purchase of its shares or to limit or suspend, without prior notice, the offering of its shares. Shares of Wright U.S. Treasury Money Market Fund purchased before 3:00 p.m. will earn interest for that day. Shares purchased between 3:00 p.m. and 4:00 p.m. will start to earn interest the next business day. Shares of each Fund may be purchased or redeemed through an investment dealer, bank or other institution ("Authorized Dealer"). Charges may be imposed by the institution for its services. Any such charges could constitute a material portion of a smaller account. Shares may be purchased or redeemed directly from or with each Fund without imposition of any charges other than those described in this Prospectus. BY WIRE: Investors may purchase shares by transmitting immediately available funds (Federal Funds) by wire to: Boston Safe Deposit and Trust Company One Boston Place Boston, MA ABA: 011001234 Account 081345 Further Credit: (Name of Fund) (Include your Fund account number) Initial purchase -- Upon making an initial investment by wire, an investor must first telephone the Funds' Order Department at (800) 225-6265, ext. 3, to advise of the action and to be assigned an account number. If this telephone call is not made, it may not be possible to process the order promptly. In addition, an Account Instructions form, which is available through WISDI, should be promptly forwarded to First Data Investor Services Group (the "Transfer Agent") at the following address: Wright Managed Investment Funds BOS 725 P.O. Box 1559 Boston, Massachusetts 02104 Subsequent Purchases -- Additional investments may be made at any time through the wire procedure described above. The Funds' Order Department must be immediately advised by telephone at (800) 225-6265, ext. 3, of each transmission of funds by wire. BY MAIL: Initial Purchases -- The Account Instructions form available through WISDI should be completed by an investor, signed and mailed with a check, Federal Reserve draft, or other negotiable bank draft, drawn on a U.S. bank and payable in U.S. dollars, to the order of the Fund whose shares are being purchased, as the case may be, and mailed to the Transfer Agent at the above address. Subsequent Purchases -- Additional purchases may be made at any time by an investor by check, Federal Reserve draft, or other negotiable bank draft, drawn on a U.S. bank and payable in U.S. dollars, to the order of the relevant Fund at the above address. The sub-account, if any, to which the subsequent purchase is to be credited should be identified together with the sub-account number and, unless otherwise agreed, the name of the sub-account. BANK DRAFT INVESTING -- FOR REGULAR SHARE ACCUMULATION: Cash investments of $50 or more may be made through the shareholder's checking account via bank draft, automated clearing house (ACH) or electronic funds transfer (EFT) each month or quarter. The $1,000 minimum initial investment and small account redemption policy are waived for Bank Draft Investing accounts. Transactions in money market instruments normally require immediate settlement in Federal Funds. Accordingly, purchase orders for Wright U.S. Treasury Money Market Fund will be executed at the net asset value next determined (see "How the Funds Value their Shares") after their receipt by the Fund only if the Fund has received payment in cash or in Federal Funds. If remitted in other than the foregoing manner, such as by money order or personal check, purchase orders will be executed as of the close of business on the second Boston business day after receipt. Information on how to procure a Federal Reserve draft or to transmit Federal Funds by wire is available at banks. A bank may charge for these services. PURCHASE THROUGH EXCHANGE OF SECURITIES: Investors wishing to purchase shares of a Fund other than the WTMM through an exchange of portfolio securities should contact WISDI to determine the acceptability of the securities and make the proper arrangements. Shares of a Fund may be purchased, in whole or in part, by delivering to the Fund's custodian securities that meet the investment objective and policies of the Fund, have readily ascertainable market prices and quotations and which are otherwise acceptable to the Investment Adviser and the Fund. The Fund will only accept securities in exchange for shares for investment purposes and not as agent for the shareholders with a view to a resale of such securities. The Investment Adviser will also require that equity securities presented for exchange be listed on the New York Stock Exchange, American Stock Exchange or NASDAQ. The Investment Adviser, WISDI and the Funds reserve the right to reject all or any part of the securities offered in exchange for shares of a Fund. An investor who wishes to make an exchange should furnish to WISDI a list with a full and exact description of all of the securities which he proposes to deliver. WISDI or the Investment Adviser will specify those securities which the Fund is prepared to accept and will provide the investor with the necessary forms to be completed and signed by the investor. The investor should then send the securities, in proper form for transfer, with the necessary forms to the Fund's custodian and certify that there are no legal or contractual restrictions on the free transfer and sale of the securities. Exchanged securities will be valued at their fair market value as of the date that the securities in proper form for transfer and the accompanying purchase order are both received by the Trust, using the procedures for valuing portfolio securities as described under "How the Funds Value their Shares." However, if the NYSE or appropriate foreign stock exchange is not open for unrestricted trading on such date, such valuation shall be on the next day on which the NYSE is so open. The net asset value used for purposes of pricing shares sold under the exchange program will be the net asset value next determined following the receipt of both the securities offered in exchange and the accompanying purchase order. Securities to be exchanged must have a minimum aggregate value of $5,000. An exchange of securities is a taxable transaction which may result in realization of a gain or loss for federal and state income tax purposes. HOW SHAREHOLDER ACCOUNTS ARE MAINTAINED Upon the initial purchase of a Fund's shares, an account will be opened for the account or sub-account of an investor. Subsequent investments may be made at any time by mail to the Transfer Agent or by wire, as noted above. Distributions paid in additional shares are credited to the accounts. Confirmation statements indicating total shares of each Fund owned in the account or each sub-account will be mailed to investors quarterly, and at the time of each purchase or redemption. The issuance of shares will be recorded on the books of the relevant Fund. The Trusts do not issue share certificates. Consolidated statements showing holdings in each Fund are prepared and mailed quarterly. Monthly statements are available on request. DISTRIBUTIONS BY THE FUNDS Any net capital gains realized from the sale of securities or other transactions in a Fund's portfolio (reduced by any available capital loss carry forwards from prior years) will be paid at least annually, shortly before or after the close of the Fund's fiscal year. WBC, WJBC and WQC intend to pay dividends from net investment income quarterly. WIBC intends to pay dividends annually. WUSTB, WNTB, WTRB, WCIF and WTMM will declare any net investment income as dividends daily and will pay them monthly. Net investment income will include interest accrued and discount earned, if any, less any accrued estimated expenses on the assets of the Funds. Unless shareholders instruct otherwise, all distributions and dividends will be automatically invested in additional shares of the same Fund. Equity Fund distributions will be reinvested as of the record date. Income Fund and WTMM distributions will be reinvested on the payment date. Alternatively, shareholders may reinvest capital gain distributions and direct that dividends be paid in cash or that both dividends and capital gain distributions be paid in cash. TAXES Each Fund is treated as a separate entity for federal income tax purposes under the Internal Revenue Code of 1986, as amended (the "Code"). Each Fund has qualified and elected to be treated as a regulated investment company for federal income tax purposes and intends to continue to qualify as such. In order to so qualify, each Fund must meet certain requirements with respect to sources of income, diversification of assets, and distributions to shareholders. The Funds do not pay federal income or excise taxes to the extent that they distribute to their shareholders all of their net investment income and net realized capital gains in accordance with the timing requirements of the Code. In addition, none of the Funds will be subject to income or corporate excise or franchise taxes in Massachusetts as long as it qualifies as a regulated investment company under the Code. In order to avoid federal excise tax, the Code requires that each Fund distribute (or be deemed to have distributed) by December 31 of each calendar year at least 98% of its ordinary income for such year, at least 98% of the excess of its realized capital gains over its realized capital losses (computed on the basis of the one-year period ending on October 31 of such year, after reduction by any available capital loss carryforwards) and 100% of any income and capital gains from the prior year (as previously computed) that was not paid out during such year and on which the Fund paid no federal income tax. As of December 31, 1995, the following Funds, for federal income tax purposes, had in the aggregate capital loss carryovers of $3,217,931 (WIBC), $434,300 (WUSTB), $21,682,260 (WNTB), $1,472,119 (WTRB) and $914,103 (WCIF), which in varying amounts expire beteween the years 1996 and 2003, which will reduce each of the aforementioned Fund's taxable income arising from future net realized gain on investments, if any, to the extent used prior to their expiration dates and otherwise permitted by the Code, and thus will reduce the amount of the distribution to shareholders which would otherwise be necessary to relieve each of the aforementioned Funds of liability for federal income tax. Distributions of net investment income and the excess of net short-term capital gain over net long-term capital loss and certain foreign currency gains are taxable to shareholders as ordinary income, whether received in cash or reinvested in additional shares. A portion of distributions of net investment income made by WBC, WJBC and WQC which are derived from dividends may qualify for the dividends-received deduction for corporations. The dividends-received deduction is reduced to the extent the shares with respect to which the dividends are received are treated as debt-financed under the Code and is eliminated if the shares are deemed to have been held for less than a minimum period, generally 46 days. Receipt of distributions qualifying for the deduction may result in liability for the alternative minimum tax and/or reduction of the tax basis of the corporate shareholder's shares. Since it is anticipated that virtually all of the ordinary income from each of the Income Funds will be derived from interest income rather than dividends, it is unlikely that any portion of the dividends paid by any of the Income Funds will be eligible for the dividends received deduction for corporations. Distributions of the excess of each Fund's net long-term capital gain over its net short-term capital loss are taxable as long-term capital gains whether received in cash or reinvested in additional shares, regardless of how long the shareholder has held the Fund shares. The dividends received deduction does not apply to distributions of such gains. Distributions on Equity Fund shares shortly after their purchase, although they may be attributable to taxable income and/or capital gains that had been realized but not distributed at the time of purchase and therefore may be in effect a return of a portion of the purchase price, are generally subject to federal income tax. The WIBC Fund's transactions in certain foreign currency options, futures or forward contracts will be subject to special tax rules, the effect of which may be to accelerate income to the Fund, defer Fund losses, cause adjustments in the holding periods of Fund securities and convert capital gains or losses into ordinary gains or losses. These rules may therefore affect the amount, timing and character of the Fund's distributions to shareholders. In order to qualify as a regulated investment company for federal income tax purposes, the Fund must derive less than 30% of its annual gross income from gross gains from the sale or other disposition of securities and certain other investments held for less than three months and will limit its activities in forward contracts and other investments to the extent necessary to comply with this requirement. The WIBC Fund may be subject to foreign withholding or other foreign taxes with respect to income (possibly including, in some cases, capital gains) derived from securities of foreign issuers. These taxes may be reduced or eliminated under the terms of an applicable U.S. income tax treaty. In any taxable year in which more than 50% of the value of the Fund's assets at the close of such taxable year consists of stocks or securities of foreign corporations, the Fund may elect to pass through to its shareholders foreign tax credits or deductions with respect to foreign income or other qualified foreign taxes paid by the Fund. In such case, shareholders will be required to include in gross income their pro rata portion of such taxes and will be eligible to claim a credit (or if they itemize their deductions, a deduction) with respect to such taxes, subject to certain conditions and limitations under the Code. Certain foreign exchange gains and losses realized by the Fund will be treated as ordinary income and losses. Certain uses of foreign currency and related forward contracts and investment by the Fund in the stock of certain "passive foreign investment companies" may be limited or in the latter case a tax election may be made, if available, in order to avoid imposition of a tax on the Fund. Each Equity Fund follows the accounting practice known as equalization, which may affect the amount, timing and character of distributions. Distributions made by the Funds will generally be subject to state and local income taxes. A state income (and possibly local income and/or intangible property) tax exemption is generally available to the extent a Fund's distributions are derived from interest on (or, in the case of intangible property taxes, the value of its assets is attributable to) certain U.S. Government obligations, provided in some states that certain thresholds for holdings of such obligations and/or reporting requirements are satisfied. A report will be sent to shareholders annually with the percentages of distributions which are derived from such interest income. Shareholders of each Fund that are not exempt from information reporting requirements will receive in January information on Form 1099 to assist in reporting the prior calendar year's distributions and, except in the case of WTMM, redemptions (including exchanges) on federal and state income tax returns. Dividends declared by a Fund in October, November or December of any calendar year to shareholders of record as of a date in such a month and paid the following January will be treated for federal income tax purposes as having been received by shareholders on December 31 of the year in which they are declared. Shareholders may realize a taxable gain or loss upon a redemption (including an exchange) of shares of a Fund, except that no gain or loss will generally result in the case of WTMM, provided that it has maintained a constant net asset value. Any loss realized upon the redemption or exchange of shares of a Fund with a tax holding period of six months or less will be treated as a long-term capital loss to the extent of any distributions of long-term capital gains with respect to such shares. All or a portion of a loss realized upon the redemption or other disposition of Fund shares may be disallowed under "wash sale" rules to the extent shares of the same Fund are purchased (including shares acquired by means of reinvested dividends) within the period beginning 30 days before and ending 30 days after the date of such redemption or other disposition. Shareholders should consult their own tax advisers with respect to the tax status of distributions from the Funds or redemption or exchange of Fund shares in their own states and localities. Under Section 3406 of the Code, individuals and other nonexempt shareholders who have not provided to a Fund their correct taxpayer identification numbers and certain certifications required by the IRS will be subject to backup withholding of 31% on taxable distributions made by the Funds and on proceeds of redemptions (including exchanges) of shares. In addition, a Fund may be required to impose backup withholding if it is notified by the IRS or a broker that the taxpayer identification number is incorrect or that backup withholding applies because of underreporting of interest or dividend income. If such withholding is applicable, such distributions and proceeds will be reduced by the amount of tax required to be withheld. Shareholders who are not United States persons should also consult their tax advisers as to the potential application of certain U.S. taxes, including a 30% U.S. withholding tax (or withholding tax at a lower treaty rate) on amounts treated as ordinary income distributions to them, and of foreign taxes to their investment in the Funds. Special tax rules apply to IRA accounts (including penalties on certain distributions and other transactions) and to other special classes of investors, such as tax-exempt organizations, banks or insurance companies. Investors should consult their tax advisers for more information. HOW TO EXCHANGE SHARES Shares of any Fund may be exchanged for shares of any other Wright Managed Investment Funds, including those in The Wright EquiFund Equity Trust, at net asset value at the time of the exchange. This exchange offer is available only in states where shares of such other fund may be legally sold. Each exchange is subject to a minimum initial investment of $1,000 in each fund. The prospectus of each fund describes its investment objectives and policies and shareholders should consider these objectives and policies carefully before requesting an exchange. Shareholders purchasing shares from an Authorized Dealer may effect exchanges between the above funds through their Authorized Dealer who will transmit information regarding the requested exchanges to the Transfer Agent. First Data Investor Services Group makes exchanges at the next determined net asset value after receiving a request in writing mailed to the address provided under "How to Buy Shares." Telephone exchanges are also accepted if the exchange involves shares valued at less than $50,000 and on deposit with First Data Investor Services Group and the investor has not disclaimed in writing the use of the privilege. To effect such exchanges, call First Data Investor Services Group at (800) 262-1122 or within Massachusetts, (617) 573-9403, Monday through Friday, 9:00 a.m. to 4:00 p.m. (Eastern Time). All such telephone exchanges must be registered in the same name(s) and with the same address and social security or other taxpayer identification number as are registered with the fund from which the exchange is being made. Neither the Funds, the Principal Underwriter nor First Data Investor Services Group will be responsible for the authenticity of exchange instructions received by telephone, provided that reasonable procedures have been followed to confirm that instructions communicated are genuine, and if such procedures are not followed, the Funds, the Principal Underwriter or First Data Investor Services Group may be liable for any losses due to unauthorized or fraudulent telephone instructions. Telephone instructions will be tape recorded. In times of drastic economic or market changes, a telephone exchange may be difficult to implement. Generally, shareholders will be limited to four telephone exchange round-trips per year and a Fund may refuse requests for telephone exchanges in excess of four round-trips (a round-trip being the exchange out of the Fund into another Wright Fund, and then back to the Fund). The Funds believe that use of the exchange privilege by investors utilizing market-timing strategies adversely affects the Funds. Therefore, a Fund generally will not honor requests for exchanges, including telephone exchanges, by shareholders identified by a Fund as "market-timers." When calling to make a telephone exchange, shareholders should have their account number and social security or other taxpayer identification numbers. Additional documentation may be required for exchange requests if shares are registered in the name of a corporation, partnership or fiduciary. Any exchange request may be rejected by a Fund or the Principal Underwriter at its discretion. The exchange privilege may be changed or discontinued without penalty at any time. Shareholders will be given sixty (60) days' notice prior to any termination or material amendment of the exchange privilege. Contact the Transfer Agent, First Data Investor Services Group, for additional information concerning the exchange privilege. Shareholders should be aware that for federal and state income tax purposes, an exchange is a taxable transaction which may result in recognition of a gain or loss, although no gain or loss will generally result from an exchange out of WTMM if it maintains a constant net asset value. HOW TO REDEEM OR SELL SHARES Shares of a Fund will be redeemed at the net asset value next determined after receipt of a redemption request in good order as described below. Proceeds will be mailed within seven days of such receipt. However, at various times a Fund may be requested to redeem shares for which it has not yet received good payment. If the shares to be redeemed represent an investment made by check, each Fund may delay payment of redemption proceeds until the check has been collected which, depending upon the location of the issuing bank, could take up to 15 days. For federal and state income tax purposes, a redemption of shares is a taxable transaction and may result in recognition of a gain or loss, although no gain or loss will generally result from a redemption of shares of WTMM if it maintains a constant net asset value. THROUGH AUTHORIZED DEALERS: Shareholders using Authorized Dealers may redeem shares through such Dealers. BY TELEPHONE: All shareholders are automatically eligible for the telephone redemption privilege, unless the account application indicates otherwise. Shareholders may effect a redemption by calling the Funds' Order Department at (800) 225-6265, ext. 3 (8:30 a.m. to 4:00 p.m. Eastern time). In times when the volume of telephone redemptions is heavy, additional phone lines will automatically be added by the Funds. However, in times of drastic economic or market changes, a telephone redemption may be difficult to implement. When calling to make a telephone redemption, shareholders should have available their account number. A telephone redemption will be made at that day's net asset value, provided that the telephone redemption request is received prior to 4:00 p.m. on that day. Telephone redemption requests received after 4:00 p.m. will be effected at the net asset value determined for the next trading day. Payment will be made by check to the address of record or, if an appropriate election was made on the application form, by wire transfer to the bank account or address designated and normally, as indicated above, within one business day after receipt of the redemption request in good order. If a telephone redemption request for shares of Wright U.S. Treasury Money Market Fund is received prior to 3:00 p.m. and the wire transfer election was made, proceeds will be wired the same day to the shareholders account and the shares redeemed will not be entitled to that day's dividend. A daily dividend will be paid on shares when the redemption request is received after 3:00 p.m. but the proceeds will not be wired until the following business day. Trust Departments may make redemptions and deposit the proceeds in checking or other accounts of clients, as specified in instructions furnished to the Funds at the time of initially purchasing Fund shares. Neither the Funds, the Principal Underwriter nor First Data Investor Services Group will be responsible for the authenticity of redemption instructions received by telephone, provided that reasonable procedures have been followed to confirm that instructions communicated are genuine, and if such procedures are not followed, the Funds, the Principal Underwriter or First Data Investor Services Group may be liable for any losses due to unauthorized or fraudulent telephone instructions. Also, shareholders may effect a redemption by calling the Funds' Transfer Agent, First Data Investor Services Group, at (800) 262-1122 (8:30 a.m. to 4:00 p.m. Eastern time) if the redemption involves shares valued at less than $50,000 and on deposit with First Data Investor Services Group. Payment will be made by check to the address of record. Telephone instructions will be tape recorded. BY MAIL: A shareholder may also redeem all or any number of shares at any time by mail by delivering the request with a stock power to the Transfer Agent, First Data Investor Services Group, Wright Managed Investment Funds, P.O. Box 1559, Boston, Massachusetts 02104. As in the case of telephone requests, payments will normally be made within one business day after receipt of the redemption request in good order. Good order means that written redemption requests or stock powers must be endorsed by the record owner(s) exactly as the shares are registered and the signature(s) must be guaranteed by a member of either the Securities Transfer Association's STAMP program or the New York Stock Exchange's Medallion Signature Program, or certain banks, savings and loan institutions, credit unions, securities dealers, securities exchanges, clearing agencies and registered securities associations as required by a regulation of the Securities and Exchange Commission and acceptable to First Data Investor Services Group. In addition, in some cases, good order may require the furnishing of additional documents, such as where shares are registered in the name of a corporation, partnership or fiduciary. BY CHECK: Shareholders of Wright U.S. Treasury Money Market Fund may appoint Boston Safe Deposit & Trust Company ("Boston Safe") their agent and may request that Boston Safe provide them with special forms of checks drawn on Boston Safe. These checks may be made payable by the shareholder to the order of any person in any amount of $500 or more. When a check is presented to Boston Safe for payment, the number of full and fractional shares required to cover the amount of the check will be redeemed from the shareholder's account by Boston Safe as the shareholder's agent. Through this procedure the shareholder will continue to be entitled to distributions paid on his shares up to the time the check is presented to Boston Safe for payment. If the amount of the check is greater than the value of the shares held in the shareholder's account, for which the Fund has collected payment, the check will be returned and the shareholder may be subject to extra charges. Forms required to set up this service may be obtained from the Principal Underwriter. Shareholders will be required to execute signature cards and will be subject to Boston Safe's rules and regulations governing such checking accounts. There is no charge to shareholders for this service. This service may be terminated or suspended at any time by the Fund or Boston Safe. The right to redeem shares of a Fund and to receive payment therefor may be suspended at times (a) when the securities markets are closed, other than customary weekend and holiday closings, (b) when trading is restricted for any reason, (c) when an emergency exists as a result of which disposal by the Fund of securities owned by it is not reasonably practicable or it is not reasonably practicable for the Fund fairly to determine the value of its net assets, or (d) when the Securities and Exchange Commission by order permits a suspension of the right of redemption or a postponement of the date of payment or redemption. Although the Funds normally intend to redeem shares in cash, each Fund, subject to compliance with applicable regulations, reserves the right to deliver the proceeds of redemptions in the form of portfolio securities if deemed advisable by the Trustees. The value of any such portfolio securities distributed will be determined in the manner described under "How the Funds Value their Shares" and may be more or less than a shareholder's cost depending upon the market value of portfolio securities at the time the redemption is made. If the amount of a Fund's shares to be redeemed for a shareholder or a sub-account within a 90-day period exceeds the lesser of $250,000 or 1% of the aggregate net asset value of the Fund at the beginning of such period, such Fund reserves the right to deliver all or any part of such excess in the form of portfolio securities. If portfolio securities were distributed in lieu of cash, the shareholder would normally incur transaction costs upon the disposition of any such securities. Due to the relatively high cost of maintaining small accounts, each Fund reserves the right to redeem fully at net asset value any Fund account which at any time, due to redemption or transfer, amounts to less than $1,000 for that Fund; any shareholder who makes a partial redemption which reduces his account in a Fund to less than $1,000 would be subject to the Fund's right to redeem such account. Prior to the execution of any such redemption, notice will be sent and the shareholder will be allowed 60 days from the date of notice to make an additional investment to meet the required minimum of $1,000 per Fund. However, no such redemption would be required by the Fund if the cause of the low account balance was a reduction in the net asset value of Fund shares. PERFORMANCE INFORMATION From time to time a Fund may publish its yield and/or average annual total return in advertisements and communications to shareholders. The current yield for a Fund (other than Wright U.S. Treasury Money Market Fund) will be calculated by dividing the net investment income per share during a recent 30 day period by the maximum offering price per share (net asset value) of a Fund on the last day of the period. A Fund's average annual total return is determined by computing the annual percentage change in value of $1,000 invested at the maximum public offering price (net asset value) for specified periods ending with the most recent calendar quarter, assuming reinvestment of all distributions. The yield of Wright U.S. Treasury Money Market Fund refers to the net income generated by an investment in the Fund over a specified seven-day period. This income is then annualized. That is, the amount of income generated by the investment during that week is assumed to be generated each week over a 52-week period and is shown as a percentage of the investment. The effective yield is expressed similarly but, when annualized, the income earned by an investment in the Fund is assumed to be reinvested. The effective yield will be slightly higher than the yield because of the compounding effect of this assumed reinvestment. Yield and effective yield for the Fund will vary based on changes in market conditions, the level of interest rates and the level of the Fund's expenses. From time to time, quotations of the yield and effective yield may be included in advertisements and communications to shareholders Investors should note that the investment results of a Fund will fluctuate over time, and any presentation of a Fund's current yield, effective yield or total return for any prior period should not be considered as a representation of what an investment may earn or what an investor's yield, effective yield or total return may be in any future period. If the expenses of a Fund were reduced by Wright, WISDI, or Eaton Vance, the Fund's performance would be higher. OTHER INFORMATION The Trusts are business trusts established under Massachusetts law and are no-load, open-end management investment companies. The Wright Managed Income Trust was established pursuant to a Declaration of Trust dated February 17, 1983, as amended. The Wright Managed Equity Trust was established pursuant to a Declaration of Trust dated June 17, 1982, as amended and restated December 21, 1987. The Trusts' shares of beneficial interest have no par value. Shares of the Trusts may be issued in two or more series or "Funds." The Wright Managed Equity Trust currently has four Funds, and The Wright Managed Income Trust currently has five Funds. Each Fund's shares may be issued in an unlimited number by the Trustees of the Trust. Each share of a Fund represents an equal proportionate beneficial interest in that Fund and, when issued and outstanding, the shares are fully paid and non-assessable by the relevant Trust. Shareholders are entitled to one vote for each full share held. Fractional shares may be voted in proportion to the amount of the net asset value of a Fund which they represent. Voting rights are not cumulative, which means that the holders of more than 50% of the shares voting for the election of Trustees of the Trust can elect 100% of the Trustees and, in such event, the holders of the remaining less than 50% of the shares voting on the matter will not be able to elect any Trustees. Shares have no preemptive or conversion rights and are freely transferable. Upon liquidation of a Fund, shareholders are entitled to share pro rata in the net assets of the particular Fund available for distribution to shareholders, and in any general assets of the Trust not allocated to a particular Fund by the Trustees. As permitted by Massachusetts law, there will normally be no meetings of shareholders for the purpose of electing Trustees unless and until such time as less than a majority of the Trustees holding office have been elected by shareholders. In such an event the Trustees then in office will call a shareholders' meeting for the election of Trustees. Except for the foregoing circumstances and unless removed by action of the shareholders in accordance with the Trust's by-laws, the Trustees shall continue to hold office and may appoint successor Trustees. The Trust's by-laws provide that no person shall serve as a Trustee if shareholders holding two-thirds of the outstanding shares have removed him from that office either by a written declaration filed with the Trust's custodian or by votes cast at a meeting called for that purpose. The Trustees shall promptly call a meeting of the shareholders for the purpose of voting upon a question of removal of a Trustee when requested so to do by the record holders of not less than 10 per centum of the outstanding shares. TAX-SHELTERED RETIREMENT PLANS The Funds are available for investment by individual retirement account plans for individuals and their non-employed spouses, pension and profit sharing plans for self-employed individuals, corporations and non-profit organizations, or 401(k) tax-sheltered retirement plans. The minimum initial purchase of $1,000 for each Fund will be waived for investments in 401(k) plans. For more information, write to: Wright Investors' Service Distributors, Inc. 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 or call: (800) 888-9471 THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS PROSPECTUS MAY 1, 1996 INVESTMENT ADVISER Wright Investors' Service, Inc. 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 PRINCIPAL UNDERWRITER Wright Investors' Service Distributors, Inc. 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 ADMINISTRATOR Eaton Vance Management 24 Federal Street Boston, Massachusetts 02110 CUSTODIAN Investors Bank & Trust Company 89 South Street Boston, Massachusetts 02111 TRANSFER AGENT First Data Investor Services Group Wright Managed Investment Funds BOS 725 P.O. Box 1559 Boston, Massachusetts 02104 AUDITORS Deloitte & Touche LLP 125 Summer Street Boston, Massachusetts 02110 24 FEDERAL STREET BOSTON, MASSACHUSETTS 02110 STATEMENT OF ADDITIONAL INFORMATION May 1, 1996 THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS - ------------------------------------------------------------------------------- THE WRIGHT MANAGED EQUITY TRUST WRIGHT SELECTED BLUE CHIP EQUITIES FUND WRIGHT JUNIOR BLUE CHIP EQUITIES FUND WRIGHT QUALITY CORE EQUITIES FUND WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND and THE WRIGHT MANAGED INCOME TRUST WRIGHT U.S. TREASURY FUND WRIGHT U.S. TREASURY NEAR TERM FUND WRIGHT TOTAL RETURN BOND FUND WRIGHT CURRENT INCOME FUND WRIGHT U.S. TREASURY MONEY MARKET FUND 24 Federal Street Boston, Massachusetts 02110 ------------------------------------------------------------------------------- TABLE OF CONTENTS PAGE Additional Information about the Trusts........... 2 Additional Investment Information................. 2 Investment Restrictions........................... 6 Officers and Trustees............................. 11 Control Persons and Principal Holders of Shares.................. 13 Investment Advisory and Administrative Services...................... 13 Custodian......................................... 15 Independent Certified Public Accountants.......... 16 Brokerage Allocation.............................. 16 Pricing of Shares................................. 17 Principal Underwriter............................. 18 Calculation of Performance and Yield Quotations... 20 Financial Statements.............................. 22 Appendix.......................................... 23 - ------------------------------------------------------------------------------- THIS COMBINED STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND IS AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS ONLY IF PRECEDED OR ACCOMPANIED BY THE CURRENT COMBINED PROSPECTUS OF THE FUNDS IN THE WRIGHT MANAGED EQUITY TRUST AND THE WRIGHT MANAGED INCOME TRUST (THE "TRUSTS"), DATED MAY 1, 1996, AS SUPPLEMENTED FROM TIME TO TIME, WHICH IS INCORPORATED HEREIN BY REFERENCE. A COPY OF THE PROSPECTUS MAY BE OBTAINED WITHOUT CHARGE FROM WRIGHT INVESTORS' SERVICE DISTRIBUTORS, INC., 1000 LAFAYETTE BOULEVARD, BRIDGEPORT, CONNECTICUT 06604 (TELEPHONE: (800) 888-9471). ADDITIONAL INFORMATION ABOUT THE TRUSTS Unless otherwise defined herein, capitalized terms have the meaning given them in the Prospectus. Each Trust is a no-load, open-end, management investment company organized as a Massachusetts business trust. The Wright Managed Equity Trust was organized in 1982 and has the four series described herein. The Wright Managed Income Trust was organized in 1983 and has the five series described herein. The Trust changed its name from The Wright Managed Bond Trust March 28, 1991. The Trusts' series are collectively refered to as the "Funds." Each Fund is a diversified fund. Each Trust's Declaration of Trust may be amended with the affirmative vote of a majority of the outstanding shares of the Trust or, if the interests of a particular Fund are affected, a majority of such Fund's outstanding shares. The Trustees are authorized to make amendments to each Declaration of Trust that do not have a material adverse effect on the interests of shareholders. Each Trust may be terminated (i) upon the sale of the Trust's assets to another diversified open-end management investment company, if approved by the holders of two-thirds of the outstanding shares of the Trust, except that if the Trustees recommend such sale of assets, the approval by the vote of a majority of the Trust's outstanding shares will be sufficient, or (ii) upon liquidation and distribution of the assets of the Trust, if approved by a majority of its Trustees or by the vote of a majority of the Trust's outstanding shares. If not so terminated, each Trust may continue indefinitely. Each Trust's Declaration of Trust further provides that the Trustees will not be liable for errors of judgment or mistakes of fact or law; however, nothing in either Declaration of Trust protects a Trustee against any liability to which he would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties involved in the conduct of his office. The Trusts are organizations of the type commonly known as "Massachusetts business trusts." Under Massachusetts law, shareholders of such a trust may, under certain circumstances, be held personally liable as partners for the obligations of the trust. Each Trust's Declaration of Trust contains an express disclaimer of shareholder liability in connection with the Trust property or the acts, obligations or affairs of the Trust. Each Declaration of Trust also provides for indemnification out of the Trust property of any shareholder held personally liable for the claims and liabilities to which a shareholder may become subject by reason of being or having been a shareholder. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which a Trust itself would be unable to meet its obligations. The risk of any shareholder incurring any liability for the obligations of a Trust is extremely remote. ADDITIONAL INVESTMENT INFORMATION DESCRIPTION OF INVESTMENTS U.S. GOVERNMENT, AGENCY AND INSTRUMENTALITY OBLIGATIONS -- U.S. Government obligations are issued by the Treasury and include bills, certificates of indebtedness, notes, and bonds. Agencies and instrumentalities of the U.S. Government are established under the authority of an act of Congress and include, but are not limited to, the Government National Mortgage Association, the Tennessee Valley Authority, the Bank for Cooperatives, the Farmers Home Administration, Federal Home Loan Banks, Federal Intermediate Credit Banks, Federal Land Banks, and the Federal National Mortgage Association. REPURCHASE AGREEMENTS -- involve purchase of debt securities of the U.S. Treasury or a federal agency, federal instrumentality or federally created corporation. At the same time a Fund purchases the security, it resells it to the vendor (a member bank of the Federal Reserve System or recognized securities dealer), and is obligated to redeliver the security to the vendor on an agreed-upon date in the future. The resale price is in excess of the purchase price and reflects an agreed-upon market rate unrelated to the coupon rate on the purchased security. Such transactions afford an opportunity for a Fund to earn a return on cash which is only temporarily available. A Fund's risk is the ability of the vendor to pay an agreed-upon sum upon the delivery date, and the Trust believes the risk is limited to the difference between the market value of the security and the repurchase price provided for in the repurchase agreement. However, bankruptcy or insolvency proceedings affecting the vendor of the security which is subject to the repurchase agreement, prior to the repurchase, may result in a delay in a Fund being able to resell the security. In all cases when entering into repurchase agreements with other than FDIC-insured depository institutions, the Funds will take physical possession of the underlying collateral security, or will receive written confirmation of the purchase of the collateral security and a custodial or safekeeping receipt from a third party under a written bailment for hire contract, or will be the recorded owner of the collateral security through the Federal Reserve Book-Entry System. CERTIFICATES OF DEPOSIT -- are certificates issued against funds deposited in a bank, are for a definite period of time, earn a specified rate of return, and are normally negotiable. BANKERS' ACCEPTANCES -- are short-term credit instruments used to finance the import, export, transfer or storage of goods. They are termed "accepted" when a bank guarantees their payment at maturity. COMMERCIAL PAPER -- refers to promissory notes issued by corporations in order to finance their short-term credit needs. FINANCE COMPANY PAPER -- refers to promissory notes issued by finance companies in order to finance their short- term credit needs. CORPORATE OBLIGATIONS -- include bonds and notes issued by corporations in order to finance longer-term credit needs. FOREIGN SECURITIES -- Wright International Blue Chip Equities Fund may invest in foreign securities. Investing in securities of foreign governments or securities issued by companies whose principal business activities are outside the United States may involve significant risks not associated with domestic investments. It is anticipated that in most cases, the best available market for foreign securities will be on exchanges or in over-the-counter markets located outside the U.S. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the U.S. 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 addition, foreign brokerage commissions are generally higher than commissions on securities traded in the U.S. and may be non-negotiable. In general, there is less overall governmental supervision and regulation of securities exchanges, brokers and listed companies than in the U.S. The limited liquidity of certain foreign markets in which the Fund may invest may affect the Fund's ability to accurately value its assets invested in such market. In addition, the settlement systems of certain foreign countries are less developed than the U.S., which may impede the Fund's ability to effect portfolio transactions. Consider also that there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing and financial reporting requirements comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in exchange control regulations, expropriation or confiscatory taxation, limitation on removal of funds or other assets of the Fund, political or financial instability or diplomatic and other developments which could affect such investments. Further, economies of particular countries or areas of the world may differ favorably or unfavorably from the economy of the U.S. FOREIGN CURRENCY EXCHANGE TRANSACTIONS. The Fund may engage in foreign currency exchange transactions. Investments in securities of foreign governments and companies whose principal business activities are located outside of the United States will frequently involve currencies of foreign countries. In addition, assets of the Fund may temporarily be held in bank deposits in foreign currencies during the completion of investment programs. Therefore, the value of the Fund's assets, as measured in U.S. dollars, may be affected favorably or unfavorably by changes in foreign currency exchange rates and exchange control regulations. Although the Fund values its assets daily in U.S. dollars, the Fund does not intend to convert its holdings of foreign currencies into U.S. dollars on a daily basis. The Fund may conduct its foreign currency exchange transactions on a spot (i.e., cash) basis at the spot rate prevailing in the foreign currency exchange market. The Fund will convert currency on a spot basis from time to time and will incur costs in connection with such currency conversion. Although foreign exchange dealers do not charge a fee for conversion, they do realize a profit based on the difference (the "spread") between the prices at which they are buying and selling various currencies. Thus, a dealer may offer to sell a foreign currency to the Fund at one rate, while offering a lesser rate of exchange should the Fund desire to resell that currency to the dealer. The Fund does not intend to speculate in foreign currency exchange rates. As an alternative to spot transactions, the Fund may enter into contracts to purchase or sell foreign currencies at a future date ("forward" contracts) or purchase currency call or put options. A forward contract involves an obligation to purchase or sell a specific currency at a future date and price fixed by agreement between the parties at the time of entering into the contract. These contracts are traded in the interbank market conducted directly between currency traders (usually large commercial banks) and their customers. A forward contract generally involves no deposit requirement and no commissions are charged at any stage for trades. The Fund intends to enter into such contracts only on net terms. The purchase of a put or call option is an alternative to the purchase or sale of forward contracts and will be used if the option premiums are less then those in the forward contract market. The Fund may enter into forward contracts only under two circumstances. First, when the Fund enters into a contract for the purchase or sale of a security quoted or dominated in a foreign currency, it may desire to "lock in" the U.S. dollar price of the security. This is accomplished by entering into a forward contract for the purchase or sale, for a fixed amount of U.S. dollars, of the amount of foreign currency involved in the underlying security transaction ("transaction hedging"). Such forward contract transactions will enable the Fund to protect itself against a possible loss resulting from an adverse change in the relationship between the U.S. dollar and the subject foreign currency during the period between the date the security is purchased or sold and the date of payment for the security. Second, when the Fund's investment adviser believes that the currency of a particular foreign country may suffer a substantial decline against the U.S. dollar, the Fund may enter into a forward contract to sell, for a fixed amount of U.S. dollars, the amount of foreign currency approximating the value of some or all of the securities quoted or denominated in such foreign currency. The precise matching of the forward contract amounts and the value of the securities involved will not generally be possible. The future value of such securities in foreign currencies will change as a consequence of fluctuations in the market value of those securities between the date the forward contract is entered into and the date it matures. The projection of currency exchange rates and the implementation of a short-term hedging strategy are highly uncertain. As an operating policy, the Fund does not intend to enter into forward contracts for such hedging purposes on a regular or continuous basis, and will not do so if, as a result, more than 50% of the value of the Fund's total assets would be committed to the consummation of such contracts. The Fund will also not enter into such forward contracts or maintain a net exposure to such contracts if the contracts would obligate the Fund to deliver an amount of foreign currency in excess of the value of the Fund's securities or other assets denominated in that currency. The Fund's custodian will place cash or liquid, high-grade debt securities in a segregated account. The amount of such segregated assets will be at least equal to the value of the Fund's total assets committed to the consummation of forward contracts involving the purchase of forward currency. If the value of the securities placed in the segregated account declines, additional cash or securities will be placed in the account on a daily basis so that the value of the amount will equal the amount of the Fund's commitments with respect to such contracts. The Fund generally will not enter into a forward contract with a term of greater than one year. At the maturity of a forward contract, the Fund may elect to sell the portfolio security and make delivery of the foreign currency. Alternatively, the Fund may retain the security and terminate its contractual obligation to deliver the foreign currency by purchasing an identical offsetting contract from the same currency trader. It is impossible to forecast with precision the market value of portfolio securities at the expiration of a forward contract. Accordingly, it may be necessary for the Fund to purchase additional foreign currency on the spot market (and bear the expense of such purchase) if the Fund intends to sell the security and the market value of the security is less than the amount of foreign currency that the Fund is obligated to deliver. Conversely, it may be necessary to sell on the spot market some of the foreign currency received upon the sale of the portfolio security if its market value exceeds the amount of foreign currency that the Fund is obligated to deliver. If the Fund retains the portfolio security and engages in an offsetting transaction, the Fund will incur a gain or a loss (as described below) to the extent that there has been a change in forward contract prices. If the Fund engages in an offsetting transaction, it may subsequently enter into a new forward contract to sell the foreign currency. Should forward contract prices decline during the period between the date the Fund enters into a forward contract for the sale of the foreign currency and the date it enters into an offsetting contract for the purchase of the foreign currency, the Fund will realize a gain to the extent that the price of the currency it has agreed to sell exceeds the price of the currency it has agreed to purchase. Should forward contract prices increase, the Fund will suffer a loss to the extent that the price of the currency it has agreed to purchase exceeds the price of the currency it has agreed to sell. The Fund will not speculate in forward contracts and will limit its dealings in such contracts to the transactions described above. Of course, the Fund is not required to enter into such transactions with respect to its portfolio securities and will not do so unless deemed appropriate by its investment adviser. This method of protecting the value of the Fund's securities against a decline in the value of a currency does not eliminate fluctuations in the underlying prices of the securities. It simply establishes a rate of exchange which the Fund can achieve at some future time. Additionally, although such contracts tend to minimize the risk of loss due to a decline in the value of the hedged currency, they also tend to limit any potential gain which might be realized if the value of such currency increases. "WHEN ISSUED" SECURITIES -- Securities are frequently offered on a "when-issued" basis. When so offered, the price, which is generally expressed in terms of yield to maturity, is fixed at the time the commitment to purchase is made, but delivery and payment for the when-issued securities may take place at a later date. Normally, the settlement date occurs 15 to 90 days after the date of the transaction. The payment obligation and the interest rate that will be received on the securities are fixed at the time a Fund enters into the purchase commitment. During the period between purchase and settlement, no payment is made by the Fund to the issuer and no interest accrues to the Fund. To the extent that assets of a Fund are held in cash pending the settlement of a purchase of securities, the Fund would earn no income; however, it is the intention that the Funds will be fully invested to the extent practicable and subject to the policies stated above. While when-issued securities may be sold prior to the settlement date, it is intended that such securities will be purchased for a Fund with the purpose of actually acquiring them unless a sale appears to be desirable for investment reasons. At the time a commitment to purchase securities on a when-issued basis is made for a Fund, the transaction will be recorded and the value of the security reflected in determining the Fund's net asset value. The Trust will establish a segregated account in which a Fund that purchases securities on a when-issued basis will maintain cash and high-grade liquid debt securities equal in value to commitments for when-issued securities. If the value of the securities placed in the separate account declines, additional cash or securities will be placed in the account on a daily basis so that the value of the account will at least equal the amount of a Fund's when-issued commitments. Such segregated securities either will mature or, if necessary, be sold on or before the settlement date. Securities purchased on a when-issued basis and the securities held by a Fund are subject to changes in value based upon the public's perception of the credit worthiness of the issuer and changes in the level of interest rates (which will generally result in both changing in value in the same way, i.e., both experiencing appreciation when interest rates decline and depreciation when interest rates rise). Therefore, to the extent that a Fund remains substantially fully invested at the same time that it has purchased securities on a when-issued basis, there will be greater fluctuations in the market value of the Fund's net assets than if cash were solely set aside to pay for when-issued securities. LENDING PORTFOLIO SECURITIES All of the Funds in the Equity Trust may seek to increase income by lending portfolio securities to broker-dealers or other institutional borrowers. Under present regulatory policies of the Securities and Exchange Commission, such loans are required to be secured continuously by collateral in cash, cash equivalents or U.S. Government securities held by the Fund's custodian and maintained on a current basis at an amount at least equal to the market value of the securities loaned, which will be marked to market daily. Cash equivalents include certificates of deposit, commercial paper and other short-term money market instruments. The Fund would have the right to call a loan and obtain the securities loaned at any time on up to five business days' notice. The Fund would not have the right to vote any securities having voting rights during the existence of a loan, but would call the loan in anticipation of an important vote to be taken among holders of the securities or the giving or withholding of their consent on a material matter affecting the investment. A series of disciplines controls the purchase and sale of securities for the Wright Junior Blue Chip Equities Fund. Each company is reviewed on a continuous basis by Wright's Investment Committee in order to assure that it continues to meet all of the required characteristics of investment quality, financial strength, profitability and stability and growth. These disciplines are believed to limit the financial risk which is sometimes associated with investment in smaller companies. However, somewhat higher volatility of market pricing and greater variability of individual stock investment returns can be expected in this Fund as compared to the Wright Selected Blue Chip Equities Fund, which is invested in larger companies. INVESTMENT RESTRICTIONS The following investment restrictions have been adopted by each Fund and may be changed as to a Fund only by the vote of a majority of the Fund's outstanding voting securities, which as used in this Statement of Additional Information means the lesser of (a) 67% of the shares of the Fund if the holders of more than 50% of the shares are present or represented at the meeting or (b) more than 50% of the shares of the Fund. Accordingly, the Trusts may not: WRIGHT SELECTED BLUE CHIP EQUITIES FUND WRIGHT JUNIOR BLUE CHIP EQUITIES FUND WRIGHT QUALITY CORE EQUITIES FUND - ------------------------------------- (1) Borrow money in excess of 1/3 of the current market value of the net assets of any Fund (excluding the amount borrowed) and then only if such borrowing is incurred as a temporary measure for extraordinary or emergency purposes or to facilitate the orderly sale of portfolio securities to accommodate redemption requests; or issue any securities of a Fund other than its shares of beneficial interest except as appropriate to evidence indebtedness which the Fund is permitted to incur. To the extent that a Fund purchases additional portfolio securities while such borrowings are outstanding, that particular Fund may be considered to be leveraging its assets, which entails the risks that the costs of borrowing may exceed the return from the securities purchased. (The Trust anticipates paying interest on borrowed money at rates comparable to a Fund's yield and the Trust has no intention of attempting to increase any Fund's net income by means of borrowing); (2) Pledge, mortgage or hypothecate its assets to an extent greater than 1/3 of the total assets of a Fund taken at market; (3) Invest more than 5% of a Fund's total assets taken at current market value in the securities of any one issuer or allow a Fund to purchase more than 10% of the voting securities of any one issuer; (4) Purchase or retain securities of any issuer if 5% of the issuer's securities are owned by those officers and Trustees of the Trust or its manager, investment adviser or administrator who own individually more than 1/2 of 1% of the issuer's securities; (5) Purchase securities on margin or make short sales except sales against the box, write or purchase or sell any put options, or purchase warrants; (6) Buy or sell real estate, commodities, or commodity contracts unless acquired as a result of ownership of securities; (7) Purchase any securities which would cause more than 25% of the market value of a Fund's total assets at the time of such purchase to be invested in the securities of issuers having their principal business activities in the same industry, provided that there is no limitation in respect to investments in obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities; (8) Underwrite securities issued by other persons except insofar as the Trust may technically be deemed an underwriter under the Securities Act of 1933 in selling a portfolio security; (9) Make loans, except (i) through the loan of a portfolio security, (ii) by entering into repurchase agreements and (iii) to the extent that the purchase of debt instruments for a Fund in accordance with the Trust's investment objective and policies may be deemed to be loans; or (10) Purchase from or sell to any of its Trustees or officers, its manager, administrator or investment adviser, its principal underwriter, if any, or the officers or directors of said manager, administrator, investment adviser or principal underwriter, portfolio securities of any Fund. Although not a matter of fundamental policy, the Trust has no current intention of entering into repurchase agreements on behalf of any Fund. In addition, each Fund will not invest (1) more than 15% of its net assets in illiquid investments, including repurchase agreements maturing in more than seven days, securities that are not readily marketable and restricted securities not eligible for resale pursuant to Rule 144A under the Securities Act of 1933 (the "1933 Act"); (2) more than 10% of its net assets in restricted securities, excluding securities eligible for resale pursuant to Rule 144A or foreign securities which are offered or sold outside the United States in accordance with Regulation S under the 1933 Act; or (3) more than 15% of its net assets in restricted securities (including those eligible for resale under Rule 144A). No Fund will purchase oil, gas or other mineral leases or purchase partnership interests in oil, gas or other mineral exploration or development programs. WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (1) Borrow money in excess of 1/3 of the current market value of the net assets of the Fund (excluding the amount borrowed) and then only if such borrowing is incurred as a temporary measure for extraordinary or emergency purposes or to facilitate the orderly sale of portfolio securities to accommodate redemption requests; or issue any securities of the Fund other than its shares of beneficial interest except as appropriate to evidence indebtedness which the Fund is permitted to incur. To the extent that the Fund purchases additional portfolio securities while such borrowings are outstanding, the Fund may be considered to be leveraging its assets, which entails the risks that the costs of borrowing may exceed the return from the securities purchased. (The Trust anticipates paying interest on borrowed money at rates comparable to the Fund's yield and the Trust has no intention of attempting to increase the Fund's net income by means of borrowing); (2) Pledge, mortgage or hypothecate its assets to an extent greater than 1/3 of the total assets of the Fund taken at market; (3) Invest more than 5% of the Fund's total assets taken at current market value in the securities of any one issuer or allow the Fund to purchase more than 10% of the voting securities of any one issuer; (4) Purchase or retain securities of any issuer if 5% of the issuer's securities are owned by those officers and Trustees of the Trust or its manager, investment adviser or administrator who own individually more than 1/2 of 1% of the issuer's securities; (5) Purchase securities on margin or make short sales except sales against the box, write or purchase or sell any put options, or purchase warrants; (6) Buy or sell real estate, commodities, or commodity contracts unless acquired as a result of ownership of securities; except that the Fund may purchase and sell futures contracts on securities, indices, currency and other financial instruments, and options on such contracts; (7) Purchase any securities which would cause more than 25% of the market value of the Fund's total assets at the time of such purchase to be invested in the securities of issuers having their principal business activities in the same industry, provided that there is no limitation in respect to investments in obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities; (8) Underwrite securities issued by other persons except insofar as the Trust may technically be deemed an underwriter under the Securities Act of 1933 in selling a portfolio security; (9) Make loans, except (i) through the loan of a portfolio security, (ii) by entering into repurchase agreements and (iii) to the extent that the purchase of debt instruments for the Fund in accordance with the Fund's investment objective and policies may be deemed to be loans; or (10) Purchase from or sell to any of its Trustees or officers, its manager, administrator or investment adviser, its principal underwriter, if any, or the officers or directors of said manager, administrator, investment adviser or principal underwriter, portfolio securities of the Fund. The Fund has adopted the following nonfundamental policies which may be changed without shareholder approval. The Fund will not purchase oil, gas or other mineral leases or purchase partnership interests in oil, gas or other mineral exploration or development programs; the Fund will not purchase or sell real property (including limited partnership interests, but excluding readily marketable interests in real estate investment trusts or readily marketable securities of companies which invest in real estate); the Fund will not purchase warrants if, as a result of such purchase, more than 5% of the Fund's net assets, taken at current value, would be invested in warrants (and the value of such warrants which are not listed on the New York or American Stock Exchange may not exceed 2% of the Fund's net assets); this policy does not apply to or restrict warrants acquired by the Fund in units or attached to securities, inasmuch as such warrants are deemed to be without value; the Fund has no current intention of entering into repurchase agreements; the Fund will not invest (1) more than 15% of its net assets in illiquid investments, including repurchase agreements maturing in more than seven days, securities that are not readily marketable and restricted securities not eligible for resale pursuant to Rule 144A under the Securities Act of 1933 (the "1933 Act"); (2) more than 10% of its net assets in restricted securities, excluding securities eligible for resale pursuant to Rule 144A or foreign securities which are offered or sold outside the United States in accordance with Regulation S under the 1933 Act; or (3) more than 15% of its net assets in restricted securities (including those eligible for resale under Rule 144A). WRIGHT U.S. TREASURY FUND WRIGHT U.S. TREASURY NEAR TERM FUND WRIGHT TOTAL RETURN BOND FUND WRIGHT CURRENT INCOME FUND - ------------------------------------- (1) Borrow money in excess of 1/3 of the current market value of the net assets of a Fund (excluding the amount borrowed) and then only if such borrowing is incurred as a temporary measure for extraordinary or emergency purposes or to facilitate the orderly sale of portfolio securities to accommodate redemption requests; or issue any securities of a Fund other than its shares of beneficial interest except as appropriate to evidence indebtedness which the Fund is permitted to incur. To the extent that a Fund purchases additional portfolio securities while such borrowings are outstanding, such Fund may be considered to be leveraging its assets, which entails the risk that the costs of borrowing may exceed the return from the securities purchased. (The Trust anticipates paying interest on borrowed money at rates comparable to a Fund's yield and the Trust has no intention of attempting to increase any Fund's net income by means of borrowing); (2) Pledge, mortgage or hypothecate the assets of any Fund to an extent greater than 1/3 of the total assets of the Fund taken at market; (3) Invest more than 5% of a Fund's total assets taken at current market value in the securities of any one issuer (other than securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities) or allow a Fund to purchase more than 10% of the voting securities of any one issuer; (4) Purchase or retain securities of any issuer if 5% of the issuer's securities are owned by those officers and Trustees of the Trust or its manager, investment adviser or administrator who own individually more than 1/2 of 1% of the issuer's securities; (5) Purchase securities on margin, make short sales except sales against the box, write or purchase or sell any put options (except with respect to securities held by any Fund investing primarily in U.S. Government securities or in securities the interest on which is exempt from federal income tax), or purchase warrants; (6) Buy or sell real estate unless acquired as a result of ownership of securities; (7) Purchase any securities which would cause more than 25% of the market value of a Fund's total assets at the time of such purchase to be invested in the securities of issuers having their principal business activities in the same industry, provided that there is no limitation in respect to investments in securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities and utility companies, gas, electric, water and telephone companies are considered as separate industries; except that, with respect to any Fund which has a policy of being primarily invested in obligations whose interest income is exempt from federal income tax, the restriction shall be that the Trust will not purchase for that Fund either (i) pollution control and industrial development bonds issued by non-governmental users or (ii) securities whose interest income is not exempt from federal income tax, if in either case the purchase would cause more than 25% of the market value of the assets of the Fund at the time of such purchase to be invested in the securities of one or more issuers having their principal business activities in the same industry; (8) Underwrite securities issued by other persons except insofar as the Trust may technically be deemed an underwriter under the Securities Act of 1933 in selling a portfolio security; (9) Make loans, except to the extent that the purchase of debt instruments in accordance with the Trust's investment objective and policies may be deemed to be loans; or (10) Purchase from or sell to any of its Trustees and officers, its manager, administrator, or investment adviser, its principal underwriter, if any, or the officers and directors of said manager, administrator, investment adviser or principal underwriter, portfolio securities of any Fund. The issuer of a pollution control or industrial development bond for purposes of investment restriction (7) is the entity or entities whose assets and revenues will provide the source for payment of principal and interest on the bond. A governmental or other entity that guarantees such a bond may also be considered the issuer of a separate security for purposes of this restriction. In addition, while not fundamental policies, so long as the shares of any Fund are registered for sale in Texas, and while the following are generally required conditions of registration in that State, the Trust undertakes that each Fund will limit its investment in warrants, valued at the lower of cost or market, to 5% of the value of the Fund's net assets (included within that amount, but not to exceed 2% of the value of the Fund's net assets, may be warrants which are not listed on the New York or American Stock Exchange. Warrants acquired by the Fund in units or attached to securities may be deemed to be without value); no Fund will purchase oil, gas or other mineral leases or purchase partnership interests in oil, gas or other mineral exploration or development programs; no Fund will purchase or sell real property (including limited partnership interests, but excluding readily marketable interests in real estate investment trusts or readily marketable securities of companies which invest in real estate). WRIGHT U.S. TREASURY MONEY MARKET FUND (1) Borrow money in excess of 1/3 of the current market value of the net assets of the Fund (excluding the amount borrowed) and then only if such borrowing, including reverse repurchase agreements, is incurred as a temporary measure for extraordinary or emergency purposes or to facilitate the orderly sale of portfolio securities to accommodate redemption requests; or issue any securities of the Fund other than its shares of beneficial interest except as appropriate to evidence indebtedness which the Fund is permitted to incur. (The Trust anticipates paying interest on borrowed money at rates comparable to the Fund's yield and the Trust has no intention of attempting to increase the Fund's net income by means of borrowing); (2) Pledge, mortgage or hypothecate the assets of the Fund to an extent greater than 1/3 of the total assets of the Fund taken at market; (3) Invest more than 5% of the Fund's total assets taken at current market value in the securities of any one issuer (other than securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities) or purchase more than 10% of the voting securities of any one issuer; (4) Purchase or retain securities of any issuer if 5% of the issuer's securities are owned by those officers and Trustees of the Trust or its manager, investment adviser or administrator who own individually more than 1/2 of 1% of the issuer's securities; (5) Purchase securities on margin, make short sales except sales against the box, write or purchase or sell any put options, or purchase warrants; (6) Buy or sell real estate unless acquired as a result of ownership of securities; (7) Purchase any securities which would cause 25% or more of the market value of the Fund's total assets at the time of such purchase to be invested in the securities of issuers having their principal business activities in the same industry, provided that there is no limitation in respect to investments in securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities and utility companies, gas, electric, water and telephone companies are considered as separate industries; (8) Underwrite securities issued by other persons except insofar as the Trust may technically be deemed an underwriter under the Securities Act of 1933 in selling a portfolio security; (9) Make loans, except (i) through the loan of a portfolio security, (ii) by entering into repurchase agreements, and (iii) to the extent that the purchase of debt instruments in accordance with the Fund's investment objective and policies may be deemed to be loans; or (10) Purchase from or sell to any of the Trust's Trustees and officers, its manager, administrator, or investment adviser, its principal underwriter, if any, or the officers and directors of said manager, administrator, investment adviser or principal underwriter, portfolio securities of the Fund. In addition, while not a fundamental policy, the Fund will not enter into repurchase agreements maturing in more than 7 days or invest in illiquid securities if, as a result, more than 10% of the Fund's net assets would be invested in such repurchase agreements and illiquid securities. ALL FUNDS. If a percentage restriction contained in any Fund's investment policies is adhered to at the time of investment, a later increase or decrease in the percentage resulting from a change in the value of portfolio securities or the Fund's net assets will not be considered a violation of such restriction. OFFICERS AND TRUSTEES The officers and Trustees of the Trusts are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Those Trustees who are "interested persons" (as defined in the 1940 Act) of the Trust, Wright, Winthrop, Eaton Vance, Eaton Vance's wholly owned subsidiary, Boston Management and Research ("BMR"), Eaton Vance's parent company, Eaton Vance Corp. (`EVC'), or Eaton Vance's and BMR's Trustee, Eaton Vance, Inc. ("EV"), by virtue of their affiliation with either the Trust, Wright, Winthrop, Eaton Vance, BMR, EVC or EV, are indicated by an asterisk (*). PETER M. DONOVAN (53), PRESIDENT AND TRUSTEE* President, Chief Executive Officer and Director of Wright and Winthrop; Vice President, Treasurer and a Director of Wright Investors' Service Distributors, Inc. Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604 H. DAY BRIGHAM, JR. (69), VICE PRESIDENT, SECRETARY AND TRUSTEE* Vice President of Eaton Vance, BMR, EVC and EV and Director, EV and EVC; Director, Trustee and officer of various investment companies managed by Eaton Vance or BMR. Address: 24 Federal Street, Boston, MA 02110 WINTHROP S. EMMET (85), TRUSTEE Retired New York City Attorney at Law; Trust Officer, First National City Bank, New York, NY (1963-1971). Address: Box 327, West Center Road, West Stockbridge, MA 01266 LELAND MILES (72), TRUSTEE President Emeritus, University of Bridgeport (1987- present); President, University of Bridgeport (1974-1987); Director, United Illuminating Company. Address: Tide Mill Landing, 2425 Post Road, Suite 102, Southport, CT 06490 A.M. MOODY III (59), VICE PRESIDENT & TRUSTEE* Senior Vice President, Wright and Winthrop; President, Wright Investors' Service Distributors, Inc. Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604 LLOYD F. PIERCE (77), TRUSTEE Retired Vice Chairman (prior to 1984 - President), People's Bank, Bridgeport, CT; Member, Board of Trustees, People's Bank, Bridgeport, CT; Board of Directors, Southern Connecticut Gas Company; Chairman, Board of Directors, COSINE. Address: 125 Gull Circle North, Daytona Beach, FL 32119 GEORGE R. PREFER (61), TRUSTEE Retired President and Chief Executive Officer, Muller Data Corp., New York, NY (1983-1986) (1989-1990); President and Chief Executive Officer, InvestData Corporation, A Mellon Financial Services Company (1986-1989). Address: 7738 Silver Bell Drive, Sarasota, FL 34241 RAYMOND VAN HOUTTE (71), TRUSTEE President Emeritus and Counselor of The Tompkins County Trust Co., Ithaca, NY (since January 1989); President and Chief Executive Officer, The Tompkins County Trust Company (1973-1988); President, New York State Bankers Association (1987-1988); Director, McGraw Housing Company, Inc., Deanco, Inc., Evaported Metal Products and Ithaco, Inc. Address: One Strawberry Lane, Ithaca, NY 14850 JUDITH R. CORCHARD (57), VICE PRESIDENT Executive Vice President, Investment Management: Senior Investment Officer; Chairman of the Investment Committee and Director of Wright and Winthrop. Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604 JAMES L. O'CONNOR (51), TREASURER Vice President of Eaton Vance, BMR and EV. Officer of various investment companies managed by Eaton Vance or BMR. Address: 24 Federal Street, Boston, MA 02110 JANET E. SANDERS (60), ASSISTANT SECRETARY AND ASSISTANT TREASURER Vice President of Eaton Vance, BMR and EV. Officer of various investment companies managed by Eaton Vance or BMR. Address: 24 Federal Street, Boston, MA 02110 WILLIAM J. AUSTIN, JR. (44), ASSISTANT TREASURER Assistant Vice President of Eaton Vance, BMR and EV. Officer of various investment companies managed by Eaton Vance or BMR. Mr. Austin was elected Assistant Treasurer of the Trust on December 18, 1991. Address: 24 Federal Street, Boston, MA 02110 A. JOHN MURPHY (33), ASSISTANT SECRETARY Assistant Vice President of Eaton Vance, BMR and EV since March 1, 1994; employee of Eaton Vance since March 1993. State Regulations Supervisor, The Boston Company (1991-1993) and Registration Specialist, Fidelity Management & Research Co. (1986-1991). Officer of various investment companies managed by Eaton Vance or BMR. Mr. Murphy was elected Assistant Secretary of the Trust on June 21, 1995. Address: 24 Federal Street, Boston, MA 02110 ERIC G. WOODBURY (38), ASSISTANT SECRETARY Vice President of Eaton Vance, BMR and EV since February 1993; formerly, associate attorney at Dechert, Price & Rhoads and Gaston &Snow. Officer of various investment companies managed by Eaton Vance or BMR. Mr. Woodbury was elected Assistant Secretary of the Trust on June 21, 1995. Address: 24 Federal Street, Boston, MA 02110 All of the Trustees and officers hold identical positions with The Wright Managed Equity Trust, The Wright Managed Income Trust, The Wright Managed Blue Chip Series Trust (except Mr. Miles) and The Wright EquiFund Equity Trust. The fees and expenses of those Trustees of the Trusts (Messrs. Emmet, Miles, Pierce, Prefer and Van Houtte) who are not affiliated persons of the Trusts are paid by the Funds and other series of the Trusts. They also received additional payments from other investment companies for which Wright provides investment advisory services. The Trustees who are interested persons of the Trusts receive no compensation from the Trusts. The Trusts do not have a retirement plan for the Trustees. For Trustee compensation for the fiscal year ended December 31, 1995, see the following table. Messrs. Emmet, Miles, Pierce, Prefer and Van Houtte are members of the Special Nominating Committee of the Trustees of the Trusts. The Special Nominating Committee's function is selecting and nominating individuals to fill vacancies, as and when they occur, in the ranks of those Trustees who are not "interested persons" of the Trusts, Eaton Vance or Wright. The Trusts do not have a designated audit committee since the full board performs the functions of such committee. COMPENSATION TABLE Fiscal Year Ended December 31, 1995 THE WRIGHT MANAGED EQUITY TRUST -- 4 Funds THE WRIGHT MANAGED INCOME TRUST -- 6 Funds Aggregate Compensation from Estimated Total The Wright Managed The Wright Managed Pension Benefits Annual Compensation Trustees Equity Trust Income Trust Accrued Benefits Paid(1) - ---------------------------------------------------------------------------------------------------------------------- Winthrop S. Emmet $1,250 $1,250 None None $5,000 Leland Miles $1,250 $1,250 None None $4,750 Lloyd F. Pierce $1,250 $1,250 None None $5,000 George R. Prefer $1,250 $1,250 None None $5,000 Raymond Van Houtte $1,250 $1,250 None None $5,000 - ---------------------------------------------------------------------------------------------------------------------- (1) Total compensation paid includes not only service on The Wright Managed Equity Trust (4 Funds) and The Wright Managed Income Trust (6 Funds) but also service on other boards in the Wright Fund complex (23 Funds) for a total of 33 Funds.
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SHARES As of March 31, 1996, the Trustees and officers of the Trusts, as a group, owned in the aggregate less than 1% of the outstanding shares of each Fund. The Funds' shares are held primarily by trust departments of depository institutions and trust companies either for their own account or for the accounts of their clients. From time to time, several of these trust departments are the record owners of 5% or more of the outstanding shares of a particular Fund. To date, the Funds' experience has been that such shareholders do not continuously hold in excess of 5% or more of a Fund's outstanding shares for extended periods of time. Should a shareholder continuously hold 5% or more of a Fund's outstanding shares for an extended period of time (a period in excess of a year), this would be disclosed by an amendment to this Statement of Additional Information showing such shareholder's name, address and percentage of ownership. Upon request, the Trusts will provide shareholders with a list of all shareholders holding 5% or more of a Fund's outstanding shares as of a current date. As of March 31, 1996, the number of trust departments which were the record owners of more than 5% of the outstanding shares of the Funds in The Wright Managed Equity Trust was as follows: WBC, 3; WJBC, 4; WQC, 4; and WIBC, 3. On March 31, 1996, the number of trust departments which were the record owners of more than 5% of the outstanding shares of the Funds in the Wright Managed Income Trust was as follows: WUSTB, 5; WNTB, 4; WTRB, 4; WCIF, 4; and WTMM, 6. INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES The Trusts have engaged Winthrop to act as their investment adviser pursuant to Investment Advisory Contracts (the "Investment Advisory Contract"). Pursuant to a service agreement effective February 1, 1996 between Winthrop and Wright, Wright, acting under the general supervision of the Trusts' Trustees, furnishes each Fund with investment advice and management services, as described below. Winthrop supervises Wright's performance of this function and retains its contractual obligations under each Investment Advisory Contract. The estate of John Winthrop Wright may be considered a controlling person of Winthrop and Wright by reason of its ownership of 29% of the outstanding shares of Winthrop. Pursuant to each Investment Advisory Contract, Wright will carry out the investment and reinvestment of the assets of the Funds, will furnish continuously an investment program with respect to the Funds, will determine which securities should be purchased, sold or exchanged, and will implement such determinations. Wright will furnish to the Funds investment advice and management services, office space, equipment and clerical personnel, and investment advisory, statistical and research facilities. In addition, Wright has arranged for certain members of the Eaton Vance and Wright organizations to serve without salary as officers or Trustees. In return for these services, each Fund is obligated to pay a monthly advisory fee calculated at the rates set forth in the Funds' current Prospectus. Effective February 1, 1996, Winthrop will cause the Funds to pay to Wright the entire amount of the advisory fee payable by each Fund under the Investment Advisory Contract with Winthrop. The following table sets forth the net assets of each Fund as at December 31, 1995 and the advisory fee earned during the fiscal years ended December 31, 1995, 1994 and 1993. Aggregate Advisory Fees Paid for the Net Assets Fiscal Year Ended December 31 at 12/31/95 1995 1994 1993 - ------------------------------------------------------------------------ THE WRIGHT MANAGED EQUITY TRUST WBC $217,587,944 $1,283,832 $1,169,165 $1,042,731 WJBC 25,993,458 174,577 322,161 364,034 WQC 49,134,274 235,233 332,192 $391,623 WIBC 237,175,946 1,682,897 1,394,066 609,489 THE WRIGHT MANAGED INCOME TRUST WUSTB(1) $ 15,156,244 $ 65,539 $ 84,992 $ 122,610 WNTB 143,599,834 739,265 1,266,025 1,549,112 WTRB 122,761,602 525,335 824,625 1,054,524 WCIF 66,345,173 313,626 403,012 437,383 WTMM(2) 45,888,947 162,732 157,447 42,817 - ------------------------------------------------------------------------ (1) To enhance the net income of the Fund during the fiscal year ended December 31, 1995, Winthrop made a reduction of its advisory fee in the amount of $17,515. (2) To enhance the net income of the Fund, Winthrop made a reduction of its advisory fees during each of the fiscal years ended December 31, 1995 and 1994 by $87,656 and $114,912, respectively. For the fiscal year ended December 31, 1993, Winthrop made a reduction of the full amount of its advisory fee and was allocated a portion of expenses related to the operation of the Fund in the amount of $21,436. The Trusts have engaged Eaton Vance to act as the administrator for each Fund pursuant to an Administration Agreement. For its services under the Administration Agreement, Eaton Vance receives monthly administration fees at the annual rates set forth in the Fund's current Prospectus. The following table sets forth the administration fees earned for the fiscal years ended December 31, 1995, 1994 and 1993. Administration Fees Paid for the Fiscal Year Ended December 31 1995 1994 1993 - ------------------------------------------------------------------------ THE WRIGHT MANAGED EQUITY TRUST WBC $263,811 $253,840 $242,846 WJBC 63,483 117,150 132,376 WQC 104,548 147,641 174,054 WIBC 270,853 248,916 162,531 THE WRIGHT MANAGED INCOME TRUST WUSTB $ 16,384 $ 21,245 $ 30,653 WNTB 129,501 172,293 192,794 WTRB 110,899 136,920 156,793 WCIF 78,407 97,754 107,639 WTMM 32,543 31,490 8,585 - ------------------------------------------------------------------------ Eaton Vance and EV are both wholly owned subsidiaries of EVC. BMR is a wholly owned subsidiary of Eaton Vance. Eaton Vance and BMR are both Massachusetts business trusts, and EV is the trustee of Eaton Vance and BMR. The Directors of EV are Landon T. Clay, H. Day Brigham, Jr., M. Dozier Gardner, James B. Hawkes and Benjamin A. Rowland, Jr. The Directors of EVC consist of the same persons and John G. L. Cabot and Ralph Z. Sorenson. Mr. Clay is chairman, and Mr. Gardner is president and chief executive officer of EVC, Eaton Vance, BMR and EV. All of the issued and outstanding shares of Eaton Vance and of EV are owned by EVC. All of the issued and outstanding shares of BMR are owned by Eaton Vance. All shares of the outstanding Voting Common Stock of EVC are deposited in a Voting Trust which expires December 31, 1996, the Voting Trustees of which are Messrs. Brigham, Clay, Gardner, Hawkes, and Rowland. The Voting Trustees have unrestricted voting rights for the election of Directors of EVC. All of the outstanding voting trust receipts issued under said Voting Trust are owned by certain of the officers of Eaton Vance and BMR who are also officers and Directors of EVC and EV. As of March 31, 1996, Messrs. Clay, Gardner and Hawkes each owned 24% of such voting trust receipts. Messrs. Rowland and Brigham each owned 15% and 13%, respectively, of such voting trust receipts. Mr. Brigham is an officer and Trustee of the Trusts, and a member of the Eaton Vance, EVC, BMR and EV organizations. Messrs. Austin, Murphy, O'Connor and Woodbury and Ms. Sanders are officers of the Trusts and are also members of the Eaton Vance, BMR and EV organizations. Eaton Vance will receive the fees paid under the Administration Agreements. EVC owns all of the stock of Energex Energy Corporation which is engaged in oil and gas exploration and development. In addition, Eaton Vance owns all the stock of Northeast Properties, Inc., which is engaged in real estate investment. EVC owns all of the stock of Fulcrum Management, Inc. and MinVen, Inc., which are engaged in precious metal mining venture investment and management. EVC, EV, Eaton Vance and BMR may also enter into other businesses. Each Trust will be responsible for all of its expenses not expressly stated to be payable by Wright under its Investment Advisory Contracts or by Eaton Vance under its Administration Agreements, including, without limitation, the fees and expenses of its custodian and transfer agent, including those incurred for determining each Fund's net asset value and keeping each Fund's books; the cost of share certificates; membership dues in investment company organizations; brokerage commissions and fees; fees and expenses of registering its shares; expenses of reports to shareholders, proxy statements, and other expenses of shareholders' meetings; insurance premiums; printing and mailing expenses; interest, taxes and corporate fees; legal and accounting expenses; expenses of Trustees not affiliated with Eaton Vance or Wright; distribution expenses incurred pursuant to the Trust's distribution plan (if any); and investment advisory and administration fees. Each Trust will also bear expenses incurred in connection with litigation in which the Trust is a party and the legal obligation the Trust may have to indemnify its officers and Trustees with respect thereto. Each Trust's Investment Advisory Contract and Administration Agreement will remain in effect until February 28, 1997. Each Trust's Investment Advisory Contract may be continued with respect to a Fund from year to year thereafter so long as such continuance after February 28, 1997 is approved at least annually (i) by the vote of a majority of the Trustees who are not "interested persons" of the Trust, Eaton Vance or Wright cast in person at a meeting specifically called for the purpose of voting on such approval and (ii) by the Board of Trustees of the Trust or by vote of a majority of the outstanding shares of that Fund. Each Trust's Administration Agreement may be continued from year to year after February 28, 1997 so long as such continuance is approved annually by the vote of a majority of the Trustees. Each agreement may be terminated as to a Fund at any time without penalty on sixty (60) days written notice by the Board of Trustees or Directors of either party, or by vote of the majority of the outstanding shares of that Fund, and each agreement will terminate automatically in the event of its assignment. Each agreement provides that, in the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of its obligations or duties to the Trust under such agreement on the part of Eaton Vance or Wright, Eaton Vance or Wright will not be liable to the Trust for any loss incurred. CUSTODIAN Investors Bank & Trust Company ("IBT"), 89 South Street, Boston, Massachusetts, acts as custodian for the Funds. IBT has the custody of all cash and securities of the Funds, maintains the Funds' general ledgers and computes the daily net asset value per share. In such capacity it attends to details in connection with the sale, exchange, substitution, transfer or other dealings with the Funds' investments, receives and disburses all funds and performs various other ministerial duties upon receipt of proper instructions from the Funds. IBT charges custody fees which are competitive within the industry. A portion of the custody fee for each fund served by IBT is based upon a schedule of percentages applied to the aggregate assets of those funds managed by Eaton Vance for which IBT serves as custodian, the fees so determined being then allocated among such funds relative to their size. These fees are then reduced by a credit for cash balances of the particular fund at IBT equal to 75% of the 91-day, U.S. Treasury Bill auction rate applied to the particular fund's average daily collected balances for the week. In addition, each fund pays a fee based on the number of portfolio transactions and a fee for bookkeeping and valuation services. INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Deloitte & Touche LLP, 125 Summer Street, Boston, Massachusetts are the Trusts' independent certified public accountants, providing audit services, tax return preparation, and assistance and consultation with respect to the preparation of filings with the Securities and Exchange Commission. BROKERAGE ALLOCATION Wright places the portfolio security transactions for each Fund, which in some cases may be effected in block transactions which include other accounts managed by Wright. Wright provides similar services directly for bank trust departments. Wright seeks to execute portfolio security transactions on the most favorable terms and in the most effective manner possible. In seeking best execution, Wright will use its best judgment in evaluating the terms of a transaction, and will give consideration to various relevant factors, including without limitation the size and type of the transaction, the nature and character of the markets for the security, the confidentiality, speed and certainty of effective execution required for the transaction, the reputation, experience and financial condition of the broker-dealer and the value and quality of service rendered by the broker-dealer in other transactions, and the reasonableness of the brokerage commission or markup, if any. It is expected that on frequent occasions there will be many broker-dealer firms which will meet the foregoing criteria for a particular transaction. In selecting among such firms, the Funds may give consideration to those firms which supply brokerage and research services, quotations and statistical and other information to Wright for their use in servicing their accounts. The Funds may include firms which purchase investment services from Wright. The term "brokerage and research services" includes advice as to the value of securities, the advisability of investing in, purchasing or selling securities, and the availability of securities or purchasers or sellers of securities; furnishing analyses and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy and the performance of accounts; and effecting securities transactions and performing functions incidental thereto (such as clearance and settlement). Such services and information may be useful and of value to Wright in servicing all or less than all of their accounts and the services and information furnished by a particular firm may not necessarily be used in connection with the account which paid brokerage commissions to such firm. The advisory fee paid by the Funds to Wright is not reduced as a consequence of Wright's receipt of such services and information. While such services and information are not expected to reduce Wright's normal research activities and expenses, Wright would, through use of such services and information, avoid the additional expenses which would be incurred if it should attempt to develop comparable services and information through its own staffs. Subject to the requirement that Wright shall use its best efforts to seek to execute each Fund's portfolio security transactions at advantageous prices and at reasonably competitive commission rates, Wright, as indicated above, is authorized to consider as a factor in the selection of any broker-dealer firm with whom a Fund's portfolio orders may be placed the fact that such firm has sold or is selling shares of the Funds or of other investment companies sponsored by Wright. This policy is consistent with a rule of the National Association of Securities Dealers, Inc., which rule provides that no firm which is a member of the Association shall favor or disfavor the distribution of shares of any particular investment company or group of investment companies on the basis of brokerage commissions received or expected by such firm from any source. Under each Trust's Investment Advisory Contract, Wright has the authority to pay commissions on portfolio transactions for brokerage and research services exceeding that which other brokers or dealers might charge provided certain conditions are met. This authority will not be exercised, however, until the Prospectus or this Statement of Additional Information has been supplemented or amended to disclose the conditions under which Wright proposes to do so. Each Investment Advisory Contract expressly recognizes the practices which are provided for in Section 28(e) of the Securities Exchange Act of 1934 by authorizing the selection of a broker or dealer which charges a Fund a commission which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if it is determined in good faith that such commission was reasonable in relation to the value of the brokerage and research services which have been provided. During the fiscal years ended December 31, 1995, 1994 and 1993, the Funds in The Wright Managed Equity Trust paid the following agregate brokerage commissions on portfolio transactions: 1995 1994 1993 ---- ---- ---- Wright Selected Blue Chip Equities Fund (WBC) $206,758 $345,675 $112,735 Wright Junior Blue Chip Equities Fund (WJBC) $45,144 $71,949 $38,721 Wright Quality Core Equities Fund (WQC) $100,898 $112,398 $109,394 Wright International Blue Chip Equities Fund (WIBC) $241,321 $722,613 $248,202 It is expected that purchases and sales of portfolio investments by the Funds in the Wright Managed Income Trust will be with the issuers or with major dealers in debt instruments acting as principal, and that the Funds will normally pay no brokerage commissions. The cost of securities purchased from underwriters includes a disclosed, fixed underwriting commission or concession, and the prices for which securities are purchased from and sold to dealers usually include an undisclosed dealer mark-up or mark-down. During the fiscal years ended December 31, 1995, 1994 and 1993, none of the Funds in The Wright Managed Income Trust paid brokerage commissions. PRICING OF SHARES ALL FUNDS EXCEPT WRIGHT U.S. TREASURY MONEY MARKET FUND For a description of how the Funds value their shares, see "How the Funds Value their Shares" in the Funds' current Prospectus. The Funds value securities with a remaining maturity of 60 days or less by the amortized cost method. The amortized cost method involves initially valuing a security at its cost (or its fair market value on the sixty-first day prior to maturity) and thereafter assuming a constant amortization to maturity of any discount or premium, without regard to unrealized appreciation or depreciation in the market value of the security. WRIGHT U.S. TREASURY MONEY MARKET FUND Wright U.S. Treasury Money Market Fund values its shares three times on each day the New York Stock Exchange (the "Exchange") is open at noon, at 3:00 p.m. and as of the close of regular trading on the Exchange - normally 4:00 p.m. New York time. The net asset value is determined by IBT (as agent for the Fund) in the manner authorized by the Trustees. Portfolio assets of the Fund are valued at amortized cost in an effort to attempt to maintain a constant net asset value of $1.00 per share, which the Trustees have determined to be in the best interests of the Fund and its shareholders. The Fund's use of the amortized cost method to value the portfolio securities is conditioned on its compliance with conditions contained in a rule issued by the Securities and Exchange Commission (the "Rule"). Under the Rule, the Trustees are obligated, as a particular responsibility within the overall duty of care owed to the shareholders, to establish procedures reasonably designed, taking into account current market conditions and the investment objectives of the Fund, to stabilize the net asset value per share as computed for the purposes of distribution, redemption and repurchase at $1.00 per share. The Trustees' procedures include periodically monitoring, as they deem appropriate and at such intervals as are reasonable in light of current market conditions, the extent of deviation between the amortized cost value per share and a net asset value per share based upon available indications of market value as well as review of the methods used to calculate the deviation. The Trustees will consider what steps, if any, should be taken in the event of a difference of more than 1/2 of 1% between such two values. The Trustees will take such steps as they consider appropriate (e.g., redemption in kind, selling prior to maturity to realize gains or losses or to shorten the average portfolio maturity, withholding dividends or using market quotations) to minimize any material dilution or other unfair results to investors or existing shareholders, which might arise from differences between the two values. The Rule requires that the Fund's investments, including repurchase agreements, be limited to those U.S. dollar-denominated instruments which the Trustees determine present minimal credit risks and which are at the time of acquisition rated by the requisite number of nationally recognized statistical rating organizations in one of the two highest short-term rating categories or, in the case of any instrument that is not so rated, of comparable quality as determined by Wright in accordance with procedures established by the Trustees. It also calls for the Fund to maintain a dollar-weighted average portfolio maturity (not more than 90 days) appropriate to its objective of maintaining a stable net asset value of $1.00 per share and precludes the purchase of any instrument with a remaining maturity of more than 13 months. Should the disposition of a portfolio security result in a dollar-weighted average portfolio maturity of more than 90 days, the Fund's available cash will be invested in such a manner as to reduce such maturity to 90 days or less as soon as reasonably practicable. It is the normal practice of the Wright U.S. Treasury Money Market Fund to hold portfolio securities to maturity and to realize par value therefor unless a sale or other disposition is mandated by redemption requirements or other extraordinary circumstances. Under the amortized cost method of valuation, traditionally employed by institutions for valuation of money market instruments, neither the amount of daily income nor the Fund's net asset value is affected by any unrealized appreciation or depreciation on securities held for the Fund. There can be no assurance that the Fund's objectives will be achieved. PRINCIPAL UNDERWRITER Each Trust has adopted a Distribution Plan as defined in Rule 12b-1 under the 1940 Act (the "Plan") on behalf of its Funds, except Wright U.S. Treasury Money Market Fund. Each Trust's Plan specifically allows that expenses covered by the Plan may include direct and indirect expenses incurred by any separate distributor or distributors under agreement with the Trust in activities primarily intended to result in the sale of its shares. The expenses of such activities shall not exceed two-tenths of one percent (2/10 of 1%) per annum of each Fund's average daily net assets. Payments under the Plan are reflected as an expense in each Fund's financial statements. Such expenses do not include interest or other financing charges. Each Trust has entered into a distribution contract on behalf of its Funds with its principal underwriter, Wright Investors' Service Distributors, Inc. ("WISDI"), a wholly-owned subsidiary of Winthrop, providing for WISDI to act as a separate distributor of each Fund's shares. Wright U.S. Treasury Money Market Fund is not obligated to make any distribution payments to WISDI under its Distribution Contract. It is intended that each Fund, except Wright U.S. Treasury Money Market Fund, will pay 2/10 of 1% of its average daily net assets to WISDI for distribution activities on behalf of the Fund in connection with the sale of its shares. WISDI shall provide on a quarterly basis documentation concerning the expenses of such activities. Documented expenses of a Fund shall include compensation paid to and out-of-pocket disbursements of officers, employees or sales representatives of WISDI, including telephone costs, the printing of prospectuses and reports for other than existing shareholders, preparation and distribution of sales literature, and advertising of any type intended to enhance the sale of shares of the Fund. Subject to the 2/10 of 1% per annum limitation imposed by each Trust's Plan, a Fund may pay separately for expenses of activities primarily intended to result in the sale of the Fund's shares. It is contemplated that the payments for distribution described above will be made directly to WISDI. If the distribution payments to WISDI exceed its expenses, WISDI may realize a profit from these arrangements. Peter M. Donovan, President, Chief Executive Officer and a Trustee of each Trust and President and a Director of Wright and Winthrop, is Vice President, Treasurer and a Director of WISDI. A.M. Moody, III, Vice President and a Trustee of the Trust and Senior Vice President of Wright and Winthrop, is President and a Director of WISDI. It is the opinion of the Trustees and officers of each Trust that the following are not expenses primarily intended to result in the sale of shares issued by any Fund; fees and expenses of registering shares of the Fund under federal or state laws regulating the sale of securities; fees and expenses of registering the Trust as a broker-dealer or of registering an agent of the Trust under federal or state laws regulating the sale of securities; fees of registering, at the request of the Trust, agents or representatives of a principal underwriter or distributor of any Fund under federal or state laws regulating the sale of securities, provided that no sales commission or "load" is charged on sales of shares of the Fund; and fees and expenses of preparing and setting in type the Trust's registration statement under the Securities Act of 1933. Should such expenses be deemed by a court or agency having jurisdiction to be expenses primarily intended to result in the sale of shares issued by a Fund, they shall be considered to be expenses contemplated by and included in the applicable Plan but not subject to the 2/10 of 1% per annum limitation described above. Under each Trust's Plan, the President or Vice President of the Trust shall provide to the Trustees for their review, and the Trustees shall review at least quarterly, a written report of the amounts expended under the Plan and the purposes for which such expenditures were made. For the fiscal year ended December 31, 1995, it is estimated that WISDI spent approximately the following amounts on behalf of The Wright Managed Investment Funds, including the Funds in the Trusts: Wright Investors Service Distributors, Inc. Financial Summaries for the Year 1995 Printing Travel Commissions Admin- Promo- & Mailing and and istration FUNDS tional Prospectuses Entertainment Service Fees and Other TOTAL - ------------------------------------------------------------------------------------------------------------------------------ THE WRIGHT MANAGED EQUITY TRUST Wright Selected Blue Chip Equities Fund (WBC) $228,226 $ 68,096 $ 56,128 -- $ 60,255 $412,705 Wright Junior Blue Chip Equities Fund (WJBC) 15,279 4,559 3,758 -- 4,034 27,630 Wright Quality Core Equities Fund (WQC) 51,369 15,327 12,633 -- 13,562 92,891 Wright International Blue Chip Equities Fund (WIBC) 201,231 71,969 59,320 39,975 63,682 436,177 THE WRIGHT MANAGED INCOME TRUST Wright U.S. Treasury Fund (WUSTB) -- -- -- -- -- -- Wright U.S. Treasury Near Term Fund (WNTB) 192,171 59,339 47,261 -- 50,736 349,507 Wright Total Return Bond Fund (WTRB) 140,735 41,991 34,611 -- 37,156 254,493 Wright Current Income Fund (WCIF) 85,921 25,637 21,131 -- 22,684 155,373
he following table shows the distribution expenses allowable to WISDI and paid by each Fund for the year ended December 31, 1995. Distribution Expenses Distribution Distribution Paid As a % of Expenses Expenses Fund's Average Allowable Paid by Fund Net Asset Value - ------------------------------------------------------------------------ THE WRIGHT MANAGED EQUITY TRUST WBC $412,705 $412,705 0.20% WJBC 63,483 27,630 (1)0.09 WQC 104,548 92,892 (2)0.18 WIBC 436,177 436,177 0.20 THE WRIGHT MANAGED INCOME TRUST WUSTB $ 32,770 $ 0(3) 0.00% WNTB 347,507 347,507 0.20 WTRB 254,493 254,493 0.20 WCIF 155,373 155,373 0.20 - ------------------------------------------------------------------------ (1) WISDI reduced its fee in the amount of $35,853. (2) WISDI reduced its fee in the amount of $11,656. (3) WISDI reduced its fee in the full amount of $32,770. Under its terms, each Trust's Plan remains in effect from year to year, provided such continuance is approved annually by a vote of its Trustees, including a majority of the Trustees who are not interested persons of the Trust and who have no direct or indirect financial interest in the operation of the Trust's Plan. Each Plan may not be amended to increase materially the amount to be spent for the services described therein as to any Fund without approval of a majority of the outstanding voting securities of that Fund and all material amendments of the Plan must also be approved by the Trustees of the Trust in the manner described above. Each Trust's Plan may be terminated at any time as to any Fund without payment of any penalty by vote of a majority of the Trustees of the Trust who are not interested persons of the Trust and who have no direct or indirect financial interest in the operation of the Plan or by a vote of a majority of the outstanding voting securities of that Fund. So long as a Trust's Plan is in effect, the selection and nomination of Trustees who are not interested persons of the Trust shall be committed to the discretion of the Trustees who are not such interested persons. The Trustees of each Trust have determined that in their judgment there is a reasonable likelihood that the Plan will benefit the Trust and its shareholders. CALCULATION OF PERFORMANCE AND YIELD QUOTATIONS The average annual total return of each Fund is determined for a particular period by calculating the actual dollar amount of investment return on a $1,000 investment in the Fund made at the maximum public offering price (i.e. net asset value) at the beginning of the period, and then calculating the annual compounded rate of return which would produce that amount. Total return for a period of one year is equal to the actual return of the Fund during that period. This calculation assumes that all dividends and distributions are reinvested at net asset value on the reinvestment dates during the period. The yield of each Fund, other than Wright U.S. Treasury Money Market Fund, is computed by dividing its net investment income per share earned during a recent 30-day period by the maximum offering price (i.e. net asset value) per share on the last day of the period and annualizing the resulting figure. Net investment income per share is equal to the Fund's dividends and interest earned during the period, with the resulting number being divided by the average daily number of shares outstanding and entitled to receive dividends during the period. For the 30-day period ended December 31, 1995, the yield of each Fund, other than Wright U.S. Treasury Money Market Fund, was as follows: 30-Day Period Ended December 31, 1995* - ------------------------------------------------------------------------ THE WRIGHT MANAGED EQUITY TRUST Wright Selected Blue Chip Equities Fund 1.25% Wright Junior Blue Chip Equities Fund 0.88% Wright Quality Core Equities Fund 0.98% THE WRIGHT MANAGED INCOME TRUST Wright U.S. Treasury Fund 6.06% Wright U.S. Treasury Near Term Fund 4.73% Wright Total Return Bond Fund 5.30% Wright Current Income Fund 6.46% - ------------------------------------------------------------------------ * according to the following formula: 6 Yield = 2 [ ( a-b + 1) - 1 ] --- cd Where: a = dividends and interest earned during the period. b = expenses accrued for the period (after reductions). c = the average daily number of accumulation units outstanding during the period. d = the maximum offering price per accumulation unit on the last day of the period. NOTE: "a" has been estimated for debt securities other than mortgage certificates by dividing the year-end market value times the yield to maturity by 360. "a" has been estimated for debt securities other than mortgage certificates by dividing the year-end market value times the yield to maturity by 360. "a" for mortgage securities, such as GNMA's, is the actual income earned. Neither discount nor premium have been amortized. "b" has been estimated by dividing the actual expense amounts for the year by 360 or the number of days the Fund was in existence. From time to time, quotations of the Wright U.S. Treasury Money Market Fund's yield and effective yield may be included in advertisements or communications to shareholders. If a portion of the Fund's expenses had not been subsidized, the Fund would have had lower returns. These performance figures are calculated in the following manner: A. Yield - the net annualized yield based on a specified 7-calendar days calculated at simple interest rates. Yield is calculated by determining the net change, exclusive of capital changes, in the value of a hypothetical pre-existing account having a balance of one share at the beginning of the period, subtracting a hypothetical charge reflecting deductions from shareholders accounts, and dividing the difference by the value of the account at the beginning of the base period to obtain the base period return. The yield is annualized by multiplying the base period return by 365/7. The yield figure is stated to the nearest hundredth of one percent. The yield of Wright U.S. Treasury Money Market Fund for the seven-day period ended December 31, 1995 was 4.89%. B. Effective Yield - the net annualized yield for a specified 7-calendar days assuming a reinvestment of the yield or compounding. Effective yield is calculated by the same method as yield except the annualized yield figure is compounded by adding 1, raising the sum to a power equal to 365 divided by 7, and subtracting one from the result, according to the following formula: Effective Yield = [(Base Period Return + 1)^365/7] - 1. The effective yield of the Wright U.S. Treasury Money Market Fund for the seven-day period ended December 31, 1995 was 5.01%. As described above, yield and effective yield are based on historical earnings and are not intended to indicate future performance. Yield and effective yield will vary based on changes in market conditions and the level of expenses. A Fund's yield or total return may be compared to the Consumer Price Index and various domestic securities indices. A Fund's yield or total return and comparisons with these indices may be used in advertisements and in information furnished to present or prospective shareholders. From time to time, evaluations of a Fund's performance made by independent sources may be used in advertisements and in information furnished to present or prospective shareholders. According to the rankings prepared by Lipper Analytical Services, Inc., an independent service which monitors the performance of mutual funds. The Lipper performance analysis includes the reinvestment of dividends and capital gain distributions, but does not take sales charges into consideration and is prepared without regard to tax consequences. The table below shows the average annual total return of each Fund for the one, five and ten-year periods ended December 31, 1995 and the period from inception to December 31, 1995. Period Ended 12/31/95 Inception To Inception One Year Five Years Ten Years 12/31/95 Date - --------------------------------------------------------------------------------------------------------------------------- THE WRIGHT MANAGED EQUITY TRUST Wright Selected Blue Chip Equities Fund (1) 30.3% 12.8% 11.6% 12.3% 1/04/83 Wright Junior Blue Chip Equities Fund (2) 20.5% 12.3% 8.1% 9.6% 1/14/85 Wright Quality Core Equities Fund (3) 29.0% 14.2% 12.3% 13.1% 8/07/85 Wright International Blue Chip Equities Fund(4) 13.6% 10.0% -- 7.4% 9/14/89 THE WRIGHT MANAGED INCOME TRUST Wright U.S. Treasury Fund (5) 28.2% 11.3% 10.2% 11.5% 7/25/83 Wright U.S. Treasury Near Term Fund (6) 11.9% 7.1% 7.6% 8.6% 7/25/83 Wright Total Return Bond Fund (7) 22.0% 9.4% 8.9% 10.5% 7/25/83 Wright Current Income Fund (8) 17.5% 8.3% -- 8.9% 4/15/87 - --------------------------------------------------------------------------------------------------------------------------- (1) If a portion of the WBC Fund's expenses had not been subsidized for the years ended December 31, 1987, 1986 and 1984, the Fund would have had lower returns; (2) If a portion of the WJBC Fund's expenses had not been subsidized during the years ended December 31, 1995, 1987 and 1985, the Fund would have had lower returns; (3) If a portion of the WQC Fund's expenses had not been subsidized during the years ended December 31, 1995, 1990, 1989, 1988, 1987 and 1985, the Fund would have had lower returns; (4) If a portion of the Fund's expenses had not been reduced during the fiscal years ending December 31, 1990 and 1989, the Fund would have had lower returns. (5) If a portion of WUSTB's expenses had not been subsidized for the years ended December 31, 1995, 1993, 1992, 1987,1985 and 1984, the Fund would have had lower returns; (6) If a portion of WNTB's expenses had not been subsidized during the year ended December 31, 1987, the Fund would have had lower returns; (7) If a portion of WTRB's expenses had not been subsidized during the five years ended December 31,1989, the Fund would have had lower returns; (8) If a portion of WCIF's expenses had not been subsidized during the five years ended December 31,1991, the Fund would have had lower returns.
FINANCIAL STATEMENTS The financial statements of the Funds, which are included in the Funds' Annual Reports to Shareholders, are incorporated by reference into this Statement of Additional Information and have been so incorporated in reliance on the report of Deloite & Touche LLP, independent certified public accountants, as experts in accounting and auditing. A copy of a Fund's most recent Annual Report accompanies this Statement of Additional Information. APPENDIX WRIGHT QUALITY RATINGS Wright Quality Ratings provide the means by which the fundamental criteria for the measurement of quality of an issuer's securities can be objectively evaluated. Each rating is based on 32 individual measures of quality grouped into four components: (1) Investment Acceptance, (2) Financial Strength, (3) Profitability and Stability, and (4) Growth. The total rating is three letters and a numeral. The three letters measure (1) Investment Acceptance, (2) Financial Strength, and (3) Profitability and Stability. Each letter reflects a composite measurement of eight individual standards which are summarized as A: Outstanding, B: Excellent, C: Good, D: Fair, L: Limited, and N: Not Rated. The numeral rating reflects Growth and is a composite of eight individual standards ranging from 0 to 20. EQUITY SECURITIES INVESTMENT ACCEPTANCE reflects the acceptability of a security by and its marketability among investors, and the adequacy of the floating supply of its common shares for the investment of substantial funds. FINANCIAL STRENGTH represents the amount, adequacy and liquidity of the corporation's resources in relation to current and potential requirements. Its principal components are aggregate equity and total capital, the ratio of invested equity capital to debt, the adequacy of net working capital, its fixed charges coverage ratio and other appropriate criteria. PROFITABILITY AND STABILITY measures the record of a corporation's management in terms of (1) the rate and consistency of the net return on shareholders' equity capital investment at corporate book value, and (2) the profits or losses of the corporation during generally adverse economic periods, including its ability to withstand adverse financial developments. GROWTH per common share of the corporation's equity capital, earnings, and dividends -- rather than the corporation's overall growth of dollar sales and income. These ratings are determined by specific quantitative formulae. A distinguishing characteristic of these ratings is that The Wright Investment Committee must review and accept each rating. The Committee may reduce a computed rating of any company, but may not increase it. DEBT SECURITIES Wright ratings for commercial paper, corporate bonds and bank certificates of deposit consist of the two central positions of the four position alphanumeric corporate equity rating. The two central positions represent those factors which are most applicable to fixed income and reserve investments. The first, Financial Strength, represents the amount, the adequacy and the liquidity of the corporation's resources in relation to current and potential requirements. Its principal components are aggregate equity and total capital, the ratios of (a) invested equity capital, and (b) long-term debt, total of corporate capital, the adequacy of net working capital, fixed charges coverage ratio and other appropriate criteria. The second letter represents Profitability and Stability and measures the record of a corporation's management in terms of: (a) the rate and consistency of the net return on shareholders' equity capital investment at corporate book value, and (b) the profits and losses of the corporation during generally adverse economic periods, and its ability to withstand adverse financial developments. The first letter rating of the Wright four-part alpha-numeric corporate rating is not included in the ratings of fixed-income securities since it primarily reflects the adequacy of the floating supply of the company's common shares for the investment of substantial funds. The numeric growth rating is not included because this element is identified only with equity investments. A-1 AND P-1 COMMERCIAL PAPER RATINGS BY S&P AND MOODY'S An S&P Commercial Paper Rating is a current assessment of the likelihood of timely payment of debt having an original maturity of no more than 365 days. `A': Issues assigned this highest rating are regarded as having the greatest capacity for timely payment. Issues in this category are delineated with the numbers 1, 2, and 3 to indicate the relative degree of safety. The `A-1' designation indicates that the degree of safety regarding timely payment is either overwhelming or very strong. Those issues determined to possess overwhelming safety characteristics will be denoted with a plus (+) sign designation. The commercial paper rating is not a recommendation to purchase or sell a security. The ratings are based on current information furnished to Standard & Poor's by the issuer or obtained from other sources it considers reliable. The ratings may be changed, suspended or withdrawn as a result of changes in or unavailability of such information. Issuers (or related supporting institutions) rated P-1 by Moody's have a superior capacity for repayment of short-term promissory obligations. P-1 repayment capacity will normally be evidenced by the following characteristics: -- Leading market positions in well-established industries. -- High rates of return on funds employed. -- Conservative capitalization structures with moderate reliance on debt and ample asset protection. -- Broad margins in earnings coverage of fixed financial charges and high internal cash generation. -- Well-established access to a range of financial markets and assured sources of alternate liquidity. BOND RATINGS In addition to Wright quality ratings, bonds or bond insurers may be expected to have credit risk ratings assigned by the two major rating companies, Moody's and S&P. Moody's uses a nine-symbol system with Aaa being the highest rating and C the lowest. S&P uses a 10-symbol system that ranges from AAA to D. Bonds within the top four categories of Moody's (Aaa, Aa, A, and Baa) and of S&P (AAA, AA, A, and BBB) are considered to be of investment-grade quality. Only the top three grades are acceptable for the taxable income Funds. Note that both S&P and Moody's currently give their highest rating to issuers insured by the American Municipal Bond Assurance Corporation (AMBAC) or by the Municipal Bond Investors Assurance Corporation (MBIA). Bonds rated A by S&P have a strong capacity to pay principal and interest, although they are somewhat more susceptible to the adverse effects of change in circumstances and economic conditions than debt in higher-rated categories. The rating of AA is accorded to issues where the capacity to pay principal and interest is very strong and they differ from AAA issues only in small degree. The AAA rating indicates an extremely strong capacity to pay principal and interest. Bonds rated A by Moody's are judged by Moody's to possess many favorable investment attributes and are considered as upper medium grade obligations. Bonds rated Aa by Moody's are judged by Moody's to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high-grade bonds. They are rated lower than Aaa bonds because margins of protection may not be as large or fluctuations of protective elements may be of greater degree or there may be other elements present which make the long-term risks appear somewhat larger. Bonds rated Aaa by Moody's are judged to be of the best quality. Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issuers. NOTE RATINGS In addition to Wright quality ratings, municipal notes and other short-term loans may be assigned ratings by Moody's or Standard & Poor's. Moody's ratings for municipal notes and other short-term loans are designated Moody's Investment Grade (MIG). This distinction is in recognition of the differences between short-term and long-term credit risk. Loans bearing the designation MIG 1 are of the best quality, enjoying strong protection by establishing cash flows of funds for their servicing or by established and broad-based access to the market for refinancing, or both. Loans bearing the designation MIG 2 are of high quality, with margins of protection ample although not so large as in the preceding group. Standard & Poor's top ratings for municipal notes issued after July 29, 1984 are SP-1 and SP-2. The designation SP-1 indicates a very strong capacity to pay principal and interest. A "+" is added for those issues determined to possess overwhelming safety characteristics. An "SP-2" designation indicates a satisfactory capacity to pay principal and interest. - ------------------------------------------------------------------------------- Description of art work on front of the report Three thin vertical blue lines on the right side of the page - ------------------------------------------------------------------------------- ANNUAL REPORT DECEMBER 31, 1995 THE WRIGHT MANAGED EQUITY TRUST THE WRIGHT MANAGED INVESTMENT FUNDS THE WRIGHT MANAGED INVESTMENT FUNDS =============================================================================== WRIGHT "TRUE BLUE CHIP" EQUITY INVESTMENT FUNDS INCLUDE THREE DIVERSIFIED PROFESSIONALLY MANAGED VEHICLES INTENDED FOR INVESTMENT PORTFOLIO USE. THEY CAN BE USED SINGLY OR IN COMBINATION TO ACHIEVE VIRTUALLY ANY OBJECTIVE. FURTHER, AS THEY ARE ALL "NO-LOAD" FUNDS (NO COMMISSIONS OR SALES CHARGES), STRATEGIES CAN BE ALTERED WITHOUT INCURRING ANY SALES CHARGES, AS DESIRED TO ADJUST TO CHANGING MARKET CONDITIONS OR CHANGING REQUIREMENTS. APPROVED WRIGHT INVESTMENT LIST Securities selected for each of the three equity portfolios are drawn from investment lists prepared by Wright Investors' Service known as The Approved Wright Investment List (the "AWIL"). Companies on the AWIL are selected by Wright as having the highest investment quality among those equity securities which are considered as "investment grade". The corporations may be large or small, exchange traded or over-the-counter, and may include those not currently paying dividends on their shares. Companies on the AWIL are, in the opinion of Wright, soundly financed and have established records of earnings profitability and equity growth. All have established investment acceptance and active, liquid markets for their publicly owned shares. WRIGHT QUALITY CORE EQUITIES FUND (WQC) seeks to enhance total investment return of price appreciation plus income by providing management of a broadly diversified portfolio of equities of well-established companies meeting strict quality standards. In selecting companies from the AWIL for this portfolio, the Investment Committee of Wright Investors' Service first ranks all AWIL companies by comparative market value. The smaller companies are eliminated from consideration. From the remaining companies Wright's Investment Committee selects, based on quantitative formulae, those companies which are expected to do better over the next one to two years. The quantitative formulae takes into consideration factors such as over/under valuation and compatibility with current market trends. Investments in the portfolio are equally weighted in the selected securities. WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) seeks to enhance total investment return of price appreciation plus income by providing active management of equities of well-established companies meeting strict quality standards. Equities selected are limited to those companies on the AWIL whose current operations reflect defined, quantified characteristics which have been determined to offer comparatively superior total investment returns over the intermediate term. The process selects those companies from the AWIL, regardless of size, based on Wright's evaluation of their outlook as described above. Investments are equally weighted. WRIGHT JUNIOR BLUE CHIP EQUITIES (WJBC). This portfolio seeks to enhance total investment return of price appreciation plus income by providing management of equities of smaller companies still experiencing their rapid growth period. Equity securities selected are limited to those companies on the AWIL which when ranked by stock market capitalization represent the smaller companies on the list. These companies are then ranked by their outlook and those with higher ranking are considered for purchase. Investments are equally weighted. DISCIPLINED APPROACH The disciplines which determine sale include preventing individual holdings from exceeding more than 2 1/2 times their normal value position in this Fund and requiring the sale of the securities of any company which no longer meets the standards of the AWIL. Also, portfolio holdings which fall in the unfavorable category based on the quantitative formulae described above are generally sold. The disciplines which determine purchase provide that new funds, income from securities currently held, and proceeds of sales of securities will be used to increase those positions which at current market are the furthest below their normal target values and to purchase companies which become eligible for the portfolios as described above. TABLE OF CONTENTS =============================================================================== INVESTMENT OBJECTIVES.....................Inside Front Cover LETTER TO SHAREHOLDERS................................... 1 WRIGHT MANAGED EQUITY FUNDS -- Dividend Distributions.................... 4 WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) -- Portfolio of Investments..................... 5 Financial Statements......................... 8 WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) -- Portfolio of Investments.....................11 Financial Statements........................ 13 WRIGHT QUALITY CORE EQUITIES FUND (WQC) -- Portfolio of Investments.....................16 Financial Statements........................ 19 REPORT TO SHAREHOLDERS =============================================================================== WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) Pockets of market weakness, notably in the technology sector, developed during the fourth quarter, but for most U.S. stocks the great 1995 bull market continued. The Wright Selected Blue Chip Equities Fund had a total investment return of 4.9% for the quarter, lagging the S&P 500's 6.0% return, but topping the 2.4% return for the Lipper Equity Growth Fund Average. For all of 1995, WBC's total return was 30.3%, compared with 37.4% for the S&P 500, 30.8% for the Lipper Equity Growth Fund Average and 23.3% for Value Line's equal-weighted 1,600-stock Composite. As high-technology stocks faded in the fourth quarter, the WBC's relatively low weighting in this group benefitted its performance. Substantial positions in printing and publishing and apparel stocks also helped, while underweighting in oil and gas stocks, which were strong in the quarter, reduced the Fund's gain. For the full year, the WBC Fund was held back by its below-market weighting in electronics, but benefitted from a relatively large position in financial stocks, one of the best performing groups last year. The stock market has gotten off to a tentative start in the first few weeks of 1996, reflecting the ongoing federal budget impasse and some disappointing earnings, primarily from technology stocks but affecting other industries as well. After the strong stock market gains seen last year, it would not be surprising if a period of profit taking persisted for a while in 1996. But if a budget agreement is reached soon and if interest rates decline further and corporate profits rise modestly in 1996, as Wright expects, the DJIA could reach 5500 this coming year. By dint of their relatively good earnings growth prospects and reasonable valuations - at a time when investor caution is increasing - high-quality stocks have the potential for better-than-market performance during 1996. Earnings growth for the stocks in the Selected Blue Chip Fund is expected to average about 11% annually over the next five years, close to double the rate expected for the S&P 500. The Fund's year-end 1995 price/earnings multiple of 15.2 was 12% lower than the S&P 500's P/E multiple of 17.4. WRIGHT QUALITY CORE EQUITIES FUND (WQC) In the fourth quarter of 1995, the Wright Quality Core Equities Fund had a total investment return of 4.9%, compared with 2.4% for the Lipper Equity Growth Fund Average. This brought the Fund's fll-year return to 29.0%, versus 30.8% for the Lipper fund average. As with the WBC, the WQC's performance in 1995 was reduced somewhat by its relatively low exposure to high-tech stocks, but this factor helped the Fund during the fourth quarter. One of the Fund's larger positions is in drug and hospital supply stocks, an area which was strong last year. In terms of trailing 12-month earnings, the WQC Fund averaged a P/E multiple of 15.9 at year-end 1995, compared with 17.4 for the S&P 500. The Fund's valuation is even more attractive in terms of forecast 1996 earnings, where its P/E of 14 represents a 15% discount to the S&P 500's PE of 16.4. WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) In general, small stocks did not perform as well as larger-cap issues during the fourth quarter of 1995 or for the entire year. Reflecting this trend, the Wright Junior Blue Chip Equities Fund, which holds the smaller stocks from the Active Wright Investment List, had a total investment return of 0.2% for the last three months of 1995, in line with the 0.4% reported for the S&P SmallCap Index and the 0.8% return estimated for the Value-Line Composite but well below the S&P 500's 6.0%. For all of 1995, the JBC returned 20.5%, compared with 30.4% for the S&P SmallCap Index, 23.3% for Value Line and 37.4% for the S&P 500. The WJBC Fund started 1996 with an average P/E multiple of 15.7, a 10% discount to the S&P 500's 17.4 multiple; the JBC's price/equity discount versus the S&P 500 was more than 25%. Over the next five years, earnings growth for current WJBC Fund holdings is forecast to average 12% per year, twice the growth expected for the average S&P 500 company. Remember that the performance data cited herein represents past performance which is not predictive of future performance and that the investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Sincerely, Peter M. Donovan President February 1996 WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS WRIGHT SELECTED BLUE CHIP EQUITIES FUND Growth of $10,000 invested 12/31/85 through 12/31/95 Annual Total Return ----------------------------------------- Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Selected Blue Chip Fund +30.3% +12.8% +11.6% Lipper Growth Funds +30.8% +15.7% +12.4% NYSE +34.9% +16.3% +14.2% Wright U.S. Fiduciary Equity Index +29.1% +20.8% +14.1% The cumulative total return of a U.S. $10,000 investment in the WRIGHT SELECTED BLUE CHIP EQUITIES FUND on 12/31/85 would have grown to $29,933 by December 31, 1995.
The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Selected Lipper Equity NYSE Wright U.S. Fiduciary Blue Chip Fund Growth Funds Index Equity Index ------------------------------------------------------------------------------- 12/31/85 $10,000 $10,000 $10,000 $10,000 12/31/86 $11,418 $11,304 $11,802 $11,601 12/31/87 $11,209 $11,429 $12,150 $11,427 12/31/88 $13,598 $13,032 $14,254 $14,329 12/31/89 $16,939 $16,361 $18,428 $16,810 12/31/90 $16,379 $15,464 $17,724 $14,505 12/31/91 $22,273 $21,030 $23,297 $20,385 12/31/92 $23,323 $22,668 $25,169 $24,733 12/31/93 $23,804 $25,073 $27,945 $28,747 12/31/94 $22,966 $24,534 $27,911 $28,954 12/31/95 $29,933 $32,088 $37,645 $37,385
WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS WRIGHT JUNIOR BLUE CHIP EQUITIES FUND Growth of $10,000 invested 12/31/85 through 12/31/95 Annual Total Return ----------------------------------------- Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Junior Blue Chip Fund +20.5% +12.3% +8.1% Value Line Stock Index +23.3% +15.1% +8.0% NYSE +34.9% +16.3% +14.2% Wright U.S. Fiduciary Equity Index +29.1% +20.8% +14.1% The cumulative total return of a U.S. $10,000 investment in the WRIGHT JUNIOR BLUE CHIP EQUITIES FUND on 12/31/85 would have grown to $21,698 by December 31, 1995.
The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Junior Value Line NYSE Wright U.S. Fiduciary Blue Chip Fund Stock Index Index Equity Index ---------------------------------------------------------------------------------- 12/31/85 $10,000 $10,000 $10,000 $10,000 12/31/86 $10,562 $10,789 $11,802 $11,601 12/31/87 $10,183 $9,904 $12,150 $11,427 12/31/88 $11,732 $11,798 $14,254 $14,329 12/31/89 $13,564 $13,554 $18,428 $16,810 12/31/90 $12,125 $10,714 $17,724 $14,505 12/31/91 $16,609 $14,168 $23,297 $20,385 12/31/92 $17,154 $15,727 $25,169 $24,733 12/31/93 $18,514 $18,010 $27,945 $28,747 12/31/94 $18,005 $17,544 $27,911 $28,954 12/31/95 $21,698 $21,635 $37,645 $37,385
WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS WRIGHT QUALITY CORE EQUITIES FUND Growth of $10,000 invested 12/31/85 through 12/31/95 Annual Total Return ------------------------------------------ Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Quality Core Equities Fund +29.0% +14.2% +12.3% Lipper Growth Funds +30.8% +15.7% +12.4% NYSE +34.9% +16.3% +14.2% Wright U.S. Fiduciary Equity Index +29.1% +20.8% +14.1% The cumulative total return of a U.S. $10,000 investment in the WRIGHT QUALITY CORE EQUITIES FUND on 12/31/85 would have grown to $31,935 by December 31, 1995.
The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Quality Lipper Equity NYSE Wright U.S. Fiduciary Equities Fund Growth Funds Index Equity Index -------------------------------------------------------------------------------- 12/31/85 $10,000 $10,000 $10,000 $10,000 12/31/86 $11,690 $11,304 $11,802 $11,601 12/31/87 $11,809 $11,429 $12,150 $11,427 12/31/88 $13,776 $13,032 $14,254 $14,329 12/31/89 $16,947 $16,361 $18,428 $16,810 12/31/90 $16,458 $15,464 $17,724 $14,505 12/31/91 $22,860 $21,030 $23,297 $20,385 12/31/92 $24,693 $22,668 $25,169 $24,733 12/31/93 $24,940 $25,073 $27,945 $28,747 12/31/94 $24,759 $24,534 $27,911 $28,954 12/31/95 $31,935 $32,088 $37,645 $37,385 NOTES: The investment results of Wright U.S. Equity Funds and Lipper's average of 646 Growth Funds are net of all fees and expenses charged to the Funds. No fees or expenses have been deducted from the other averages. The Total Investment Return is the % return of an initial $10,000 investment made at the beginning of the period to the ending redeemable value assuming all dividends and distributions are reinvested. Past performance is not predictive of future performance.
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum. Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt Ending Share $ P/S in Shares Owned Value Return Return Return Return (Annualized) (Annualized)(Annualized) =================================================================================================================================== THE EQUITY TRUST -- WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) =================================================================================================================================== 1/4/83 $10.00 100.00 $1,000.00 Dec. 94 13.85 0.42 0.030905 250.65 3,471.54 -3.52% 6.28% 11.32% 10.94% Jan. 95 13.98 250.65 3,504.13 -3.26% 8.21% 10.64% 10.94% Feb. 95 14.71 250.65 3,687.11 2.27% 9.24% 11.00% 11.34% Mar. 95 14.58 0.22 0.015172 254.46 3,709.97 6.84% 8.78% 11.16% 11.31% Apr. 95 14.90 254.46 3,791.39 9.19% 9.75% 11.47% 11.43% May 95 15.34 254.46 3,903.35 12.57% 8.56% 11.24% 11.61% Jun. 95 15.65 0.05 0.003205 255.28 3,995.13 17.18% 8.85% 11.27% 11.73% Jul. 95 16.16 255.27 4,125.19 18.47% 9.87% 11.66% 11.93% Aug. 95 16.31 255.27 4,163.48 15.32% 12.31% 11.80% 11.93% Sep. 95 16.85 0.05 0.002973 256.03 4,314.11 22.37% 14.11% 12.63% 12.16% Oct. 95 16.77 256.03 4,293.63 21.37% 14.31% 12.04% 12.04% Nov. 95 17.42 256.03 4,460.05 30.75% 13.71% 11.82% 12.29% Dec. 95 16.83 0.83 0.050060 268.85 4,524.70 30.34% 12.82% 11.59% 12.32%
- ----------------------------------------------------------------------------------------------------------------------------------- > THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) - ----------------------------------------------------------------- 1/15/85 $10.00 100.00 $1,000.00 Dec. 94 11.00 0.39 0.036184 205.59 2,261.54 -2.75% 5.83% -- 8.54% Jan. 95 10.86 205.59 2,232.75 -5.49% 7.80% 7.69% 8.33% Feb. 95 11.40 205.59 2,343.77 -1.76% 8.52% 7.85% 8.78% Mar. 95 10.54 0.89 0.085482 223.17 2,352.20 2.47% 7.71% 8.16% 8.74% Apr. 95 10.78 223.17 2,405.76 4.71% 8.53% 8.55% 8.91% May 95 10.88 223.17 2,428.08 8.48% 7.39% 8.12% 8.93% Jun. 95 11.06 0.11 0.009701 225.33 2,492.19 12.79% 7.90% 8.17% 9.13% Jul. 95 11.57 225.33 2,607.11 16.43% 9.29% 8.37% 9.52% Aug. 95 11.76 225.33 2,649.93 14.10% 13.12% 8.65% 9.61% Sep. 95 12.04 0.03 0.002071 225.80 2,718.64 18.43% 15.18% 9.45% 9.79% Oct. 95 11.78 225.80 2,659.93 14.48% 15.84% 8.90% 9.49% Nov. 95 12.08 225.80 2,727.67 22.74% 14.70% 8.58% 9.67% Dec. 95 10.85 1.22 0.112442 251.19 2,725.41 20.51% 12.34% 8.05% 9.58%
- ----------------------------------------------------------------------------------------------------------------------------------- THE EQUITY TRUST -- WRIGHT QUALITY CORE EQUITIES FUND (WQC) - ------------------------------------------------------------ 7/22/85 $10.00 100.00 $1,000.00 Dec. 94 11.39 1.10 0.097247 246.63 2,809.14 -0.73% 7.88% -- 11.56% Jan. 95 11.52 246.63 2,841.20 0.56% 9.93% -- 11.58% Feb. 95 12.06 246.63 2,974.38 5.70% 10.77% -- 12.02% Mar. 95 12.15 0.04 0.003314 247.45 3,006.51 11.16% 10.20% -- 12.03% Apr. 95 12.36 247.45 3,058.48 13.18% 10.97% -- 12.12% May 95 12.64 247.45 3,127.76 14.14% 9.56% -- 12.27% Jun. 95 12.90 0.04 0.003113 248.22 3,202.03 18.89% 9.96% -- 12.42% Jul. 95 13.36 248.22 3,316.22 20.33% 11.22% -- 12.71% Aug. 95 13.52 248.22 3,355.93 17.20% 14.05% 12.79% 12.72% Sep. 95 13.88 0.04 0.002872 248.93 3,455.18 23.37% 16.03% 13.52% 12.94% Oct. 95 13.79 248.93 3,574.67 29.93% 15.96% 12.93% 12.75% Nov. 95 14.36 248.93 3,574.67 29.93% 15.04% 12.63% 13.09% Dec. 95 12.65 1.88 0.150641 286.43 3,623.34 28.98% 14.18% 12.31% 13.12% - -----------------------------------------------------------------------------------------------------------------------------------
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 =============================================================================== Shares Value - ------------------------------------------------------------------------------- EQUITY INTERESTS -- 98.7% APPAREL -- 2.4% Reebok International Ltd............ 52,800 $ 1,491,600 Russell Corp........................ 74,100 2,056,275 VF Corp............................. 31,330 1,652,657 ----------- $ 5,200,532 ----------- AUTOMOTIVE -- 1.8% Eaton Corp.......................... 29,700 $ 1,592,663 Echlin Inc.......................... 31,000 1,131,500 Modine Manufacturing Co............. 49,500 1,188,000 ----------- $ 3,912,163 ----------- BEVERAGES -- 1.9% Anheuser Busch...................... 34,650 $ 2,317,219 Brown Forman Corp................... 52,300 1,908,950 ----------- $ 4,226,169 ----------- CHEMICALS -- 5.9% Clorox Company...................... 26,940 $ 1,929,577 Great Lakes Chemical Corp........... 29,900 2,152,800 Lubrizol Corp....................... 58,600 1,633,475 Morton International Inc............ 33,000 1,183,875 PPG Industries...................... 42,500 1,944,375 Rohm & Haas Co...................... 30,900 1,989,188 Sherwin Williams Co................. 50,700 2,066,025 ----------- $ 12,899,315 ----------- CONSTRUCTION -- 1.0% Fleetwood Enterprises, Inc.......... 88,900 $ 2,289,175 ----------- DIVERSIFIED -- 7.3% Crane Company....................... 50,900 $ 1,876,938 General Electric Co................. 31,340 2,256,480 Johnson Controls.................... 34,100 2,344,375 Lancaster Colony Corp............... 34,000 1,266,500 National Service Industries......... 65,800 2,130,275 Rockwell International Corp......... 39,910 2,110,241 Standex International Corp.......... 55,730 1,825,157 Teleflex, Incorporated.............. 50,400 2,066,400 ----------- $ 15,876,366 ----------- DRUGS, COSMETICS & HEALTH CARE -- 7.8% Alberto Culver Co. Class A.......... 76,500 $ 2,333,250 Bard C.R............................ 59,000 1,902,750 Becton Dickinson & Co............... 29,900 2,242,500 Bristol-Myers Squibb Co............. 26,764 2,298,358 Johnson & Johnson................... 29,900 2,560,188 Lilly (Eli) & Co.................... 47,800 2,688,750 Merck & Co., Inc.................... 43,400 2,853,550 ----------- $ 16,879,346 ----------- ELECTRICAL -- 0.9% Emerson Electric Co................. 23,750 $ 1,941,563 ----------- ELECTRONICS -- 4.0% Hewlett Packard Inc................. 30,500 $ 2,554,375 Raytheon Co......................... 47,360 2,237,760 Sun Microsystems Inc.*.............. 86,000 3,923,750 ----------- $ 8,715,885 ----------- FINANCIAL -- 17.1% AFLAC Corp.......................... 44,700 $ 1,938,862 American International Group........ 25,000 2,312,500 Bancorp Hawaii Inc.................. 56,475 2,026,041 Commerce Bancshares, Inc............ 67,449 2,579,939 Compass Bancshares.................. 69,500 2,293,500 Edwards (A.G.), Inc................. 83,000 1,981,625 Fifth Third Bancorp................. 32,900 2,409,925 First Colony Corp................... 88,100 2,235,537 First Hawaiian Inc.................. 72,300 2,169,000 First Virginia Banks Inc............ 45,665 1,906,514 Jefferson Pilot Corp................ 48,600 2,259,900 MBIA Inc............................ 30,400 2,280,000 Raymond James Financial Corp........ 93,500 1,975,187 FINANCIAL -- continued Southern National Corp.............. 80,700 2,118,375 Southtrust Corporation.............. 77,075 1,975,047 Star Banc Corp...................... 44,565 2,651,618 SunTrust Banks Inc.................. 31,420 2,152,270 ----------- $ 37,265,840 ----------- FOOD -- 4.2% Dean Foods Company.................. 73,500 $ 2,021,250 Hormel (George A.) & Company........ 74,200 1,827,175 Pioneer Hi-Bred International....... 53,700 2,987,062 Universal Foods Corp................ 58,500 2,347,313 ----------- $ 9,182,800 ----------- MACHINERY & EQUIPMENT -- 3.0% Briggs & Stratton Corp.............. 48,480 $ 2,102,820 Dover Corp.......................... 55,100 2,031,813 Pitney-Bowes Inc.................... 49,600 2,331,200 ----------- $ 6,465,833 ----------- METAL PRODUCTS MANUFACTURERS -- 3.8% CLARCOR Inc......................... 87,950 $ 1,791,980 Kaydon Corp......................... 58,900 1,789,087 Stanley Works....................... 50,000 2,575,000 Watts Industries, Inc. Class A...... 90,500 2,104,125 ----------- $ 8,260,193 ----------- OIL, GAS & COAL -- 1.1% Exxon Corporation................... 29,300 $ 2,347,662 ----------- PAPER -- 1.9% Kimberly-Clark Corp................. 35,300 $ 2,921,075 Sonoco Products Co.................. 46,000 1,207,500 ----------- $ 4,128,575 ----------- PRINTING & PUBLISHING -- 8.2% American Greetings Corp............. 42,000 $ 1,160,250 Banta (George) Corp................. 53,699 2,362,756 Ennis Business Forms................ 144,320 1,767,920 Gannett Co. Inc..................... 37,680 2,312,610 Harland (John H.) Co................ 76,600 1,599,025 Lee Enterprises, Inc................ 102,200 2,350,600 Reynolds & Reynolds Inc............. 73,600 2,861,200 Wallace Computer Services........... 61,600 3,364,900 ----------- $ 17,779,261 ----------- RECREATION -- 2.9% International Dairy Queen, Inc*..... 99,700 $ 2,268,175 Luby's Cafeteria, Inc............... 94,050 2,092,613 Sturm, Ruger & Company, Inc......... 69,600 1,905,300 ----------- $ 6,266,088 ----------- RETAILERS -- 8.5% Casey's General Stores.............. 119,500 $ 2,614,062 Claire's Stores Inc................. 61,000 1,075,125 Consolidated Stores Corp*........... 46,000 1,000,500 Dress Barn Inc*..................... 202,200 1,996,725 Giant Food Inc...................... 76,300 2,403,450 Hannaford Brothers Company.......... 63,100 1,553,838 May Department Stores............... 42,800 1,808,300 Rex Stores Corporation*............. 72,100 1,279,775 Rite Aid Corp....................... 69,800 2,390,650 Ross Stores Inc..................... 128,400 2,455,650 ----------- $ 18,578,075 ----------- UTILITIES -- 10.4% Ameritech Corp...................... 40,140 $ 2,368,260 Central & South West Corp........... 68,200 1,901,075 Century Telephone Enterprises....... 75,000 2,381,250 DQE................................. 77,400 2,380,050 Duke Power Co....................... 41,250 1,954,219 Lincoln Telecom Co.................. 114,020 2,408,672 NIPSCO Industries Inc............... 51,600 1,973,700 Sprint Corp......................... 59,800 2,384,525 TECO Energy, Inc.................... 98,000 2,511,250 Wisconsin Energy Corp............... 74,850 2,292,281 ----------- $ 22,555,282 ----------- MISCELLANEOUS -- 4.6% Dionex Corporation*................. 46,300 $ 2,627,525 Genuine Parts Co.................... 54,050 2,216,050 Leggett & Platt Inc................. 54,900 1,331,325 Marshall Industries*................ 63,865 2,051,663 Stanhome Inc........................ 59,100 1,721,288 ----------- $ 9,947,851 ----------- TOTAL EQUITY INTERESTS - 98.7% (identified cost, $171,824,296) $214,717,974 RESERVE FUNDS -- 1.1% Face Amount American Express Corp., 5.65%, 1/2/96 (at amortized cost.............$2,400,000) 2,400,000 ----------- TOTAL INVESTMENTS -- 99.8% (identified cost, $174,224,296) $217,117,974 OTHER ASSETS, LESS LIABILITIES -- 0.2% 469,970 ----------- NET ASSETS -- 100% $217,587,944 ============ * Non-income-producing security. See notes to financial statements
WRIGHT SELECTED BLUE CHIP EQUITIES FUND =============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 - ------------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $174,224,296 Unrealized appreciation................ 42,893,678 ------------ Total Value (Note 1A)................ $217,117,974 Cash..................................... 69,173 Receivable for Fund shares sold.......... 233,603 Dividends and interest receivable........ 444,852 ------------ Total Assets........................... $217,865,602 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 260,284 Trustee fees payable..................... 370 Accrued custodian fee.................... 6,800 Accrued expenses and other liabilities... 10,204 ------------ Total Liabilities...................... $ 277,658 ------------ NET ASSETS.................................. $217,587,944 ============= NET ASSETS CONSIST OF: Proceeds from sales of shares (including the market value of securities received in exchange for Fund shares and shares issued to shareholders in payment of distributions declared), less cost of shares reacquired................... $173,374,154 Accumulated undistributed net realized loss on investments (computed on the basis of identified cost)....................... (13,798) Unrealized appreciation of investments (computed on the basis of identified cost)....... 42,893,678 Undistributed net investment income...... 1,333,910 ------------ Net assets applicable to outstanding shares$217,587,944 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 12,931,453 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $16.83 =============
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------- INVESTMENT INCOME: Income -- Dividends.............................. $ 4,832,004 Interest............................... 280,771 ------------ Total Income......................... $ 5,112,775 ------------ Expenses -- Investment Adviser fee (Note 2)........ $ 1,283,832 Administrator fee (Note 2)............. 263,811 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 2,317 Custodian fee (Note 2)................. 82,028 Transfer and dividend disbursing agent fees 19,584 Shareholder communication expense...... 20,947 Distribution expenses (Note 3)......... 412,705 Audit services......................... 28,500 Legal services......................... 1,421 Printing............................... 2,544 Registration costs..................... 20,598 Interest expense....................... 885 Miscellaneous.......................... 7,400 ------------ Total Expenses....................... $ 2,146,572 ------------ Net Investment Income.............. $ 2,966,203 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 10,432,468 Change in unrealized appreciation of investments......................... 40,854,983 ------------ Net realized and unrealized gain on investments......................... $ 51,287,451 ------------ Net increase in net assets from operations.................... $ 54,253,654 ============= See notes to financial statements
WRIGHT SELECTED BLUE CHIP EQUITIES FUND =============================================================================== Year Ended December 31, STATEMENTS OF CHANGES IN NET ASSETS 1995 1994 - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income...................................................... $ 2,966,203 $ 2,972,904 Net realized gain on investment transactions............................... 10,432,468 9,148,808 Change in unrealized appreciation of investments........................... 40,854,983 (19,763,621) ------------ ------------ Increase (decrease) in net assets from operations..................... $ 54,253,654 $ (7,641,909) ------------ ------------ Undistributed net investment income (loss) included in price of shares sold and redeemed (Note 1C).................................. $ (87,633) $ 280,883 ------------ ------------ Distributions to shareholders -- From net investment income................................................. $ (2,612,968) $ (2,385,221) From net realized gain on investment transactions.......................... (10,432,468) (4,787,377) In excess of net realized gain on investment transactions.................. (1,367,084) -- ------------ ------------ Total distributions to shareholders................................... $ (14,412,520) $ (7,172,598) ------------ ------------ Net increase (decrease) from Fund share transactions (exclusive of amounts allocated to net investment income) (Note 4)................................ $ (8,181,348) $ 25,068,300 ------------ ------------ Net increase in net assets............................................ $ 31,572,153 $ 10,534,676 NET ASSETS: At beginning of year........................................................... 186,015,791 175,481,115 ------------ ------------ At end of year................................................................. $ 217,587,944 $ 186,015,791 ============= ============= UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 1,333,910 $ 2,009,226 ============= ============= See notes to financial statements
WRIGHT SELECTED BLUE CHIP EQUITIES FUND =============================================================================== Year Ended December 31, -------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 - ---------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 13.850 $ 14.920 $ 14.790 $ 17.180 $ 13.840 -------- -------- -------- -------- -------- Income (Loss) from Investment Operations: Net investment income.................. $ 0.226 $ 0.233 $ 0.196 $ 0.222 $ 0.267 Net realized and unrealized gain (loss) on investments....................... 3.904 (0.763) 0.104 0.498 4.553 -------- -------- -------- -------- -------- Total income (loss) from investment operations....... $ 4.130 $ (0.530) $ 0.300 $ 0.720 $ 4.820 -------- -------- -------- -------- -------- Less Distributions: From net investment income............. $ (0.200) $ (0.180) $ (0.170) $ (0.200) $ (0.250) From net realized gain on investments.. (0.840) (0.360) -- (2.910) (1.230) In excess of net realized gain on investments....................... (0.110) -- -- -- -- -------- -------- -------- -------- -------- Total distributions................ $ (1.150) $ (0.540) $ (0.170) $ (3.110) $ (1.480) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 16.830 $ 13.850 $ 14.920 $ 14.790 $ 17.180 ========= ========= ========= ========= ========= Total Return(1)............................. 30.34% (3.52%) 2.06% 4.71% 35.98% Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $217,588 $186,016 $ 175,481 $ 152,997 $167,900 Ratio of expenses to average net assets 1.04% 1.03% 1.03% 1.02% 1.08% Ratio of net investment income to average net assets........................... 1.44% 1.57% 1.28% 1.34% 1.67% Portfolio turnover rate................ 44% 72% 28% 77% 72% (1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the record date. See notes to financial statements
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 ============================================================================== Shares Value - ------------------------------------------------------------------------------ EQUITY INTERESTS -- 99.5% AUTOMOTIVE -- 1.7% Modine Manufacturing Co............. 18,100 $ 434,400 ----------- CONSTRUCTION -- 1.2% Fleetwood Enterprises, Inc.......... 12,000 $ 309,000 ----------- DIVERSIFIED -- 8.7% Carlisle Corp....................... 6,000 $ 242,250 Crane Company....................... 18,000 663,750 Standex International Corp.......... 20,000 655,000 Teleflex, Inc....................... 17,000 697,000 ----------- $ 2,258,000 ----------- DRUGS, COSMETICS & HEALTH CARE -- 7.9% Alberto Culver Company Class A...... 21,000 $ 640,500 Invacare Corporation................ 26,000 656,500 Nellcor Inc*........................ 13,000 754,000 ----------- $ 2,051,000 ----------- ELECTRICAL -- 1.7% Baldor Electric..................... 22,500 $ 452,813 ----------- ELECTRONICS -- 6.4% Dallas Semiconductor Corp........... 34,000 $ 705,500 Digi International, Inc*............ 8,800 167,200 Logicon Inc......................... 10,000 275,000 Verifone Inc*....................... 18,000 515,250 ----------- $ 1,662,950 ----------- FINANCIAL -- 10.9% First Commercial Corp............... 18,190 $ 600,270 First Hawaiian Inc.................. 15,000 450,000 Raymond James Financial Corp........ 27,000 570,375 Star Banc Corp...................... 12,000 714,000 Southern National Corp.............. 19,000 498,750 ----------- $ 2,833,395 ----------- FOOD -- 3.0% Universal Food's Corporation........ 19,500 $ 782,437 ----------- MACHINERY & EQUIPMENT -- 5.2% Briggs & Stratton Corp.............. 15,000 $ 650,625 Donaldson Co. Inc................... 28,000 703,500 ----------- $ 1,354,125 ----------- METAL PRODUCTS MANUFACTURERS -- 7.5% CLARCOR Inc......................... 25,300 $ 515,487 Kaydon Corp......................... 24,300 738,112 Regal Beloit Corp................... 13,500 293,625 Watts Industries, Inc. Class A...... 17,000 395,250 ----------- $ 1,942,474 ----------- PAPER -- 2.0% Wausau Paper Mills Co............... 18,700 $ 509,575 ----------- PRINTING & PUBLISHING -- 12.2% American Business Products-GA....... 12,000 $ 342,000 Banta (George) Co., Inc............. 12,750 561,000 Ennis Business Forms................ 40,000 490,000 Harland (John H.) Co................ 31,000 647,125 Lee Enterprises, Inc................ 24,000 552,000 Wallace Computer Services........... 10,400 568,100 ----------- $ 3,160,225 ----------- RECREATION -- 6.3% International Dairy Queen, Inc.*.... 33,000 $ 750,750 Luby's Cafeteria, Inc............... 31,000 689,750 Sturm, Ruger & Company, Inc......... 7,500 205,313 ----------- $ 1,645,813 ----------- RETAILERS -- 7.2% Casey's General Stores, Inc......... 26,000 $ 568,750 Dress Barn Inc*..................... 46,000 454,250 Hannaford Brothers Co............... 16,000 394,000 Rex Stores Corporation*............. 13,500 239,625 Ruddick Corp........................ 18,600 213,900 ----------- $ 1,870,525 ----------- TRANSPORTATION -- 2.3% Expeditors International............ 23,000 $ 600,875 ----------- UTILITIES -- 4.6% DQE................................. 10,000 $ 307,500 Lincoln Telecom Co.................. 42,000 887,250 ----------- $ 1,194,750 ----------- MISCELLANEOUS -- 10.7% Crawford & Co....................... 39,000 $ 633,750 Dionex Corp*........................ 9,400 533,450 Lydall Inc*......................... 10,000 227,500 Marshall Industries*................ 23,000 738,875 Stanhome Inc........................ 23,000 669,875 ----------- $ 2,803,450 ----------- TOTAL INVESTMENTS -- 99.5% (identified cost, $21,151,984) $ 25,865,807 OTHER ASSETS, LESS LIABILITIES -- 0.5% 127,651 ----------- NET ASSETS -- 100.0% $ 25,993,458 ============ * Non-income-producing security. See notes to financial statements
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND ============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 - ------------------------------------------------------------------------------ ASSETS: Investments -- Identified cost........................ $ 21,151,984 Unrealized appreciation................ 4,713,823 ------------ Total Value (Note 1A)................ $ 25,865,807 Cash..................................... 7,569 Receivable for investment sold........... 875,931 Dividends receivable..................... 49,619 Receivable for Fund shares sold.......... 5,006 ------------ Total Assets........................... $ 26,803,932 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 124,046 Loans payable (Note 8)................... 675,000 Trustee fees payable..................... 370 Accrued distribution fee................. 4,338 Accrued custodian fee.................... 2,500 Accrued expenses and other liabilities... 4,220 ------------ Total Liabilities...................... $ 810,474 ------------ NET ASSETS.................................. $ 25,993,458 ============= NET ASSETS CONSIST OF: Proceeds from sales of shares (including the market value of securities received in exchange for Fund shares and shares issued to shareholders in payment of distributions declared), less cost of shares reacquired................... $ 19,120,702 Accumulated undistributed net realized gain on investments (computed on the basis of identified cost)....................... 1,908,092 Unrealized appreciation of investments (computed on the basis of identified cost)....... 4,713,823 Undistributed net investment income...... 250,841 ------------ Net assets applicable to outstanding shares $ 25,993,458 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 2,395,166 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $10.85 =============
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------- INVESTMENT INCOME: Income -- Dividends............................... $ 619,095 Interest................................ 23,850 ------------ Total Income.......................... $ 642,945 ------------ Expenses -- Investment Adviser fee (Note 2)......... $ 174,577 Administrator fee (Note 2).............. 63,483 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 2,400 Custodian fee (Note 2).................. 37,087 Transfer and dividend disbursing agent fees 6,951 Shareholder communication expense....... 5,198 Distribution expenses (Note 3).......... 63,483 Audit services.......................... 24,900 Legal services.......................... 957 Registration costs...................... 17,099 Printing................................ 1,288 Interest expense........................ 4,766 Miscellaneous........................... 3,108 ------------ Total Expenses........................ $ 405,297 ------------ Deduct -- Reduction of distribution expenses by Principal Underwriter (Note 3)........ $ 35,853 Reduction of custodian fee.............. 7,919 ------------ Total................................. $ 43,772 ------------ Net expenses.......................... $ 361,525 ------------ Net investment income............... $ 281,420 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................. $ 2,687,430 Change in unrealized appreciation of investments.......................... 2,980,154 ------------ Net realized and unrealized gain on investments.......................... $ 5,667,584 ------------ Net increase in net assets from operations..................... $ 5,949,004 ============= See notes to financial statements
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND =============================================================================== Year Ended December 31, ----------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income...................................................... $ 281,420 $ 529,321 Net realized gain on investment transactions............................... 2,687,430 6,599,714 Change in unrealized appreciation of investments........................... 2,980,154 (8,816,947) ------------ ------------ Increase (decrease) in net assets from operations..................... $ 5,949,004 $ (1,687,912) ------------ ------------ Undistributed net investment loss included in price of shares sold and redeemed (Note 1C).................................. $ (78,838) $ (98,655) ------------ ------------ Distributions to shareholders -- From net investment income................................................... $ (266,107) $ (488,244) From net realized gain on investment transactions............................ (2,687,430) (2,117,788) In excess of net realized gain on investment transactions.................... (2,913,944) -- ------------ ------------ Total distributions to shareholders................................... $ (5,867,481) $ (2,606,032) ------------ ------------ Net decrease from Fund share transactions (exclusive of amounts allocated to net investment income) (Note 4)......................... $ (11,133,267) $ (26,708,885) ------------ ------------ Net decrease in net assets............................................ $ (11,130,582) $ (31,101,484) NET ASSETS: At beginning of year........................................................... 37,124,040 68,225,524 ------------ ------------ At end of year................................................................. $ 25,993,458 $ 37,124,040 ============== ============== UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 250,841 $ 384,483 ============== ============== See notes to financial statements
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND =============================================================================== Year Ended December 31, ------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 11.000 $ 11.950 $ 11.690 $ 14.720 $ 11.500 -------- -------- -------- -------- -------- Income (Loss) from Investment Operations: Net investment income(1)............... $ 0.120 $ 0.101 $ 0.101 $ 0.045 $ 0.072 Net realized and unrealized gain (loss) on investments....................... 1.977 (0.431) 0.809 0.315 4.118 -------- -------- -------- -------- -------- Total income (loss) from investment operations....... $ 2.097 $ (0.330) $ 0.910 $ 0.360 $ 4.190 -------- -------- -------- -------- -------- Less Distributions: From net investment income............. $ (0.100) $ (0.100) $ (0.060) $ (0.030) $ (0.070) From net realized gain on investments.. (1.030) (0.520) (0.590) (3.360) (0.900) In excess of net realized gain on investments....................... (1.117) -- -- -- -- -------- -------- -------- -------- -------- Total distributions................ $ (2.247) $ (0.620) $ (0.650) $ (3.390) $ (0.970) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 10.850 $ 11.000 $ 11.950 $ 11.690 $ 14.720 ========= ========= ========= ========= ========= Total Return(3)............................. 20.51% (2.75%) 7.93% 3.28% 36.98% Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $ 25,993 $ 37,124 $ 68,226 $ 64,635 $120,911 Ratio of expenses to average net assets 1.17%(2) 1.11% 1.09% 1.07% 1.10% Ratio of net investment income to average net assets........................... 0.89% 0.91% 0.86% 0.31% 0.52% Portfolio turnover rate................ 40% 36% 38% 80% 60% (1)During the year ended December 31, 1995, the Principal Underwriter reduced its fee. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1995 Net investment income per share........ $ 0.105 ========= Ratios (As a percentage of average net assets): Expenses........................... 1.28% ========= Net investment income.............. 0.78% ========= (2) Custodian fees were reduced by credits resulting from cash balances the Trust maintained with the custodian (Note 2). The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, in accordance with reporting regulations in effect beginning in 1995. If these credits were considered, the ratio of net expenses to average daily net assets would have been reduced to 1.14%. (3) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the record date. See notes to financial statements
WRIGHT QUALITY CORE EQUITIES FUND (WQC) PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 =============================================================================== Shares Value - ------------------------------------------------------------------------------- EQUITY INTERESTS -- 99.5% APPAREL -- 3.2% Nautica Enterprises Inc.*........... 9,000 $ 393,750 Nike Inc............................ 3,800 264,575 Reebok International Ltd............ 9,300 262,725 Russell Corp........................ 11,300 313,575 VF Corp............................. 6,225 328,369 ----------- $ 1,562,994 ----------- AUTOMOTIVE -- 1.6% Eaton Corp.......................... 5,900 $ 316,388 Echlin Inc.......................... 6,200 226,300 Modine Manufacturing Co............. 10,000 240,000 ----------- $ 782,688 ----------- BEVERAGES -- 1.4% Anheuser Busch...................... 5,400 $ 361,125 Brown-Forman Corp .................. 9,150 333,975 ----------- $ 695,100 ----------- CHEMICALS -- 6.4% Air Products & Chemicals............ 5,600 $ 295,400 Clorox Corp......................... 4,300 307,987 Cooper Tire & Rubber................ 13,700 337,362 Great Lakes Chemical Corp........... 4,700 338,400 Lubrizol Corp....................... 9,500 264,813 Morton International Inc............ 7,000 251,125 PPG Industries...................... 7,200 329,400 RPM Inc............................. 19,125 315,563 Rohm & Haas Co...................... 5,650 363,719 Sherwin Williams Co................. 8,300 338,225 ----------- $ 3,141,994 ----------- CONSTRUCTION -- 2.0% Clayton Homes....................... 15,135 $ 323,511 Fleetwood Enterprises, Inc.......... 13,000 334,750 Oakwood Homes Corp.................. 8,500 326,187 ----------- $ 984,448 ----------- DIVERSIFIED -- 6.4% Crane Company....................... 9,600 $ 354,000 General Electric Co................. 5,250 378,000 Johnson Controls.................... 4,900 336,875 Lancaster Colony Corp............... 9,932 369,967 Minnesota Mining & Mfg. Co.......... 5,066 335,622 National Service Industries......... 10,900 352,888 Rockwell Int'l. Corp................ 6,650 351,619 Standex International Corp.......... 9,400 307,850 Teleflex Inc........................ 8,000 328,000 ----------- $ 3,114,821 ----------- DRUGS, COSMETICS & HEALTH CARE -- 8.1% Abbott Laboratories................. 8,130 $ 339,427 Alberto Culver Co. Class A.......... 10,600 323,300 Ballard Medical Products............ 13,200 235,950 Bard (C.R.) Inc..................... 12,000 387,000 Becton Dickinson & Co............... 4,750 356,250 Bristol-Myers Squibb Co............. 4,000 343,500 Invacare Corp....................... 12,500 315,625 Johnson & Johnson................... 3,850 329,656 Lilly (Eli) & Company............... 5,200 292,500 Merck & Co.......................... 5,842 384,112 Nellcor, Inc.*...................... 5,700 330,600 Pfizer Inc.......................... 5,600 352,800 ----------- $ 3,990,720 ----------- ELECTRICAL -- 1.3% Baldor Electric..................... 14,400 $ 289,800 Emerson Electric Co................. 4,400 359,700 ----------- $ 649,500 ----------- ELECTRONICS -- 4.5% Dallas Semiconductor Corp........... 15,800 $ 327,850 Digi International, Inc.*........... 12,600 239,400 Hewlett-Packard Inc................. 3,800 318,250 Logicon Inc......................... 12,200 335,500 Raytheon Co......................... 7,400 349,650 Sun Microsystems, Inc.*............. 6,800 310,250 Verifone, Inc.*..................... 11,200 320,600 ----------- $ 2,201,500 ----------- FINANCIAL -- 15.1% AFLAC, Inc.......................... 8,100 $ 351,337 Allied Group........................ 6,400 230,400 American International Group........ 3,700 342,250 Bancorp Hawaii...................... 8,950 321,081 Commerce Bancshares, Inc............ 8,978 343,389 Compass Bancshares.................. 10,300 339,900 Edwards (A.G.), Inc................. 14,500 346,187 Fifth Third Bancorp................. 4,650 340,613 First Colony Corp................... 12,900 327,338 First Commercial Corp............... 11,021 363,693 First Hawaiian Inc.................. 11,900 357,000 First Security CP................... 9,500 365,750 First Virginia Banks Inc............ 7,700 321,475 Jefferson Pilot Corp................ 7,800 362,700 MBIA, Inc........................... 4,350 326,250 Mercantile Bankshares............... 11,700 326,138 Old Kent Financial Corp............. 7,800 320,775 Raymond James Financial Corp........ 15,500 327,438 Southern National Corp.............. 12,900 338,625 Southtrust Corp..................... 14,200 363,875 Star Banc Corp...................... 5,800 345,100 SunTrust Banks Inc.................. 5,350 366,475 ----------- $ 7,427,789 ----------- FOOD -- 5.4% CPC International Inc............... 4,850 $ 332,831 Dean Foods Co....................... 11,300 310,750 H.J. Heinz Co....................... 11,025 365,203 Hershey Foods Corp.................. 5,340 347,100 Hormel (George A.) & Co............. 13,400 329,975 Pioneer Hi-Bred International....... 6,100 339,312 Sara Lee Corp....................... 7,000 223,125 Universal Foods Corp................ 10,300 413,288 ----------- $ 2,661,584 ----------- MACHINERY & EQUIPMENT -- 2.7% Briggs & Stratton Corp.............. 7,600 $ 329,650 Donaldson Co., Inc.................. 14,200 356,775 Dover Corp.......................... 8,400 309,750 Pitney-Bowes Inc.................... 7,400 347,800 ----------- $ 1,343,975 ----------- METAL PRODUCTS MANUFACTURERS -- 4.0% CLARCOR............................. 16,700 $ 340,263 Illinois Tool Works Inc............. 5,300 312,700 Kaydon Corp......................... 9,700 294,637 Regal Beloit Corp................... 15,100 328,425 Stanley Works....................... 6,500 334,750 Watts Industries, Inc. Class A...... 15,600 362,700 ----------- $ 1,973,475 ----------- OIL, GAS, COAL & RELATED SERVICES -- 0.7% Exxon Corp.......................... 4,400 $ 352,550 ----------- PAPER -- 2.8% Bemis Co............................ 13,500 $ 345,937 Kimberly-Clark...................... 4,350 359,963 Sonoco Products Co.................. 12,955 340,069 Wausau Paper Mills Co............... 11,600 316,100 ----------- $ 1,362,069 ----------- PRINTING & PUBLISHING -- 6.7% American Greetings.................. 10,000 $ 276,250 Banta Corp.......................... 7,500 330,000 Donnelley (R.R.) & Sons............. 9,500 374,062 Ennis Business Forms................ 24,000 294,000 Gannett Co. Inc..................... 5,450 334,494 Harland (John H.) Co................ 14,000 292,250 Knight-Ridder Inc................... 5,050 315,625 Lee Enterprises, Inc................ 16,000 368,000 Reynolds & Reynolds, Inc............ 9,500 369,312 Wallace Computer Services........... 6,300 344,138 ----------- $ 3,298,131 ----------- RECREATION -- 4.5% Capital Cities/ABC, Inc............. 2,600 $ 320,775 Carnival Cruise Class A............. 9,100 221,813 International Dairy Queen, Inc.*.... 14,300 325,325 Luby's Cafeteria, Inc............... 16,000 356,000 McDonald's Corp..................... 7,500 338,437 Sturm, Ruger & Company, Inc......... 10,900 298,388 Wendy's International, Inc.......... 16,600 352,750 ----------- $ 2,213,488 ----------- RETAILERS -- 8.3% Albertson's Inc..................... 9,600 $ 315,600 Arbor Drugs Inc..................... 16,800 352,800 Casey's General Stores, Inc......... 13,700 299,687 Claire's Stores Inc................. 15,900 280,237 Consolidated Stores Corp.*.......... 14,000 304,500 Dress Barn, Inc*.................... 35,200 347,600 Hannaford Brothers Co............... 12,800 315,200 May Department Stores............... 7,300 308,425 Nordstrom Inc....................... 7,700 311,850 Rex Stores Corp.*................... 13,200 234,300 Rite Aid Corp....................... 10,500 359,625 Ross Stores Inc..................... 17,300 330,863 Walgreen Co......................... 10,700 319,663 ----------- $ 4,080,350 ----------- TRANSPORTATION -- 1.1% Atlantic Southeast Airlines......... 9,000 $ 193,500 Expeditors International............ 12,900 337,013 ----------- $ 530,513 ----------- UTILITIES -- COMMUNICATIONS -- 6.9% AmeriTech Corp...................... 6,600 $ 389,400 Bell Atlantic Corp.................. 3,500 234,062 Century Telephone Enterprises....... 10,000 317,500 DQE Inc............................. 12,750 392,062 Duke Power Company.................. 7,250 343,468 Lincoln Telecommunications.......... 17,600 371,800 NIPSCO Industries, Inc.............. 8,300 317,475 Sprint Corp......................... 8,300 330,962 TECO Energy, Inc.................... 13,700 351,062 Wisconsin Energy Corp............... 10,550 323,094 ----------- $ 3,370,885 ----------- MISCELLANEOUS -- 6.4% Computer Sciences Corp.*............ 4,500 $ 316,125 Crawford and Co..................... 21,200 344,500 Dionex Corporation*................. 5,700 323,475 Genuine Parts Co.................... 8,750 358,750 Interpublic Group Cos. Inc.......... 8,700 377,362 Kent Electronics Corp.*............. 6,850 399,869 Leggett & Platt Inc................. 15,200 368,600 Marshall Industries*................ 9,800 314,825 Stanhome Inc........................ 11,300 329,113 ----------- $ 3,132,619 ----------- TOTAL EQUITY INTERESTS -- 99.5% (identified cost, $39,625,069) $ 48,871,193 RESERVE FUNDS -- 0.5% Face Amount American Express Corp., 5.65%, 1/2/96 (at amorized cost.................$250,000) 250,000 ----------- TOTAL INVESTMENTS -- 100.0% (identified cost, $39,875,069) $ 49,121,193 OTHER ASSETS, LESS LIABILITIES -- 0.0% 13,081 ----------- NET ASSETS -- 100% $ 49,134,274 ============ * Non-income-producing security. See notes to financial statements
WRIGHT QUALITY CORE EQUITIES FUND STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 =============================================================================== ASSETS: Investments -- Identified cost........................ $ 39,875,069 Unrealized appreciation................ 9,246,124 ------------ Total Value (Note 1A)................ $ 49,121,193 Cash..................................... 3,148 Dividends and interest receivable........ 92,171 ------------ Total Assets........................... $ 49,216,512 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 61,807 Trustee fees payable..................... 370 Accrued custodian fee.................... 3,000 Accrued distribution fee................. 12,751 Accrued expenses and other liabilities... 4,310 ------------ Total Liabilities...................... $ 82,238 ------------ NET ASSETS.................................. $ 49,134,274 ============= NET ASSETS CONSIST OF: Proceeds from sales of shares (including the market value of securities received in exchange for Fund shares and shares issued to share- holders in payment of distributions declared), less cost of shares reacquired......... $ 40,057,176 Unrealized appreciation of investments (computed on the basis of identified cost) 9,246,124 Distributions in excess of net investment income................................. (169,026) ------------ Net assets applicable to outstanding shares................... $ 49,134,274 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 3,884,915 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $12.65 =============
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------ INVESTMENT INCOME: Income -- Dividends.............................. $ 1,117,596 Interest............................... 54,250 ------------ Total Income......................... $ 1,171,846 ------------ Expenses -- Investment Adviser fee (Note 2)........ $ 235,233 Administrator fee (Note 2)............. 104,548 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 2,557 Custodian fee (Note 2)................. 52,851 Transfer and dividend disbursing agent fees 8,423 Shareholder communication expense...... 4,668 Distribution expenses (Note 3)......... 104,548 Audit services......................... 29,900 Legal services......................... 1,005 Registration costs..................... 18,342 Printing............................... 2,441 Interest expense....................... 182 Miscellaneous.......................... 4,108 ------------ Total Expenses....................... $ 568,806 ------------ Deduct -- Reduction of distribution expenses by Principal Underwriter (Note 3)........ $ 11,656 Reduction of custodian fee.............. 8,482 ------------ Total................................. $ 20,138 ------------ Net expenses.......................... $ 548,668 ------------ Net investment income.............. $ 623,178 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 7,097,632 Change in unrealized appreciation of investments......................... 5,562,948 ------------ Net realized and unrealized gain on investments......................... $ 12,660,580 ------------ Net increase in net assets from operations.................... $ 13,283,758 ============= See notes to financial statements
WRIGHT QUALITY CORE EQUITIES FUND ============================================================================== Year Ended December 31, -------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1995 1994 - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income...................................................... $ 623,178 $ 1,076,807 Net realized gain on investment transactions............................... 7,097,632 9,834,657 Change in unrealized appreciation of investments........................... 5,562,948 (11,332,016) ------------ ------------ Increase (decrease) in net assets from operations..................... $ 13,283,758 $ (420,552) ------------ ------------ Undistributed net investment loss included in price of shares sold and redeemed (Note 1C).................................. $ (61,558) $ (198,337) ------------ ------------ Distributions to shareholders -- From net investment income................................................. $ (614,587) $ (879,992) From net realized gain on investment transactions.......................... (6,258,626) (4,488,457) In excess of net realized gain on investment transactions.................. -- (7,109) ------------ ------------ Total distributions to shareholders................................... $ (6,873,213) $ (5,375,558) ------------ ------------ Net decrease from Fund share transactions (exclusive of amounts allocated to net investment income) (Note 4)......................... $ (8,299,369) $ (31,269,572) ------------ ------------ Net decrease in net assets............................................ $ (1,950,382) $ (37,264,019) NET ASSETS: At beginning of year........................................................... 51,084,656 88,348,675 ------------ ------------ At end of year................................................................. $ 49,134,274 $ 51,084,656 ============= ============= UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS........................................................ $ (169,026) $ 192,766 ============= ============= See notes to financial statements
WRIGHT QUALITY CORE EQUITIES FUND =============================================================================== Year Ended December 31, ------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 11.390 $ 12.720 $ 13.380 $ 14.730 $ 10.760 -------- -------- -------- -------- -------- Income (Loss) from Investment Operations: Net investment income(1)............... $ 0.153 $ 0.180 $ 0.176 $ 0.179 $ 0.175 Net realized and unrealized gain (loss) on investments....................... 3.107 (0.295) (0.046) 0.951 3.985 -------- -------- -------- -------- -------- Total income (loss) from investment operations....... $ 3.260 $ (0.115) $ 0.130 $ 1.130 $ 4.160 -------- -------- -------- -------- -------- Less Distributions: From net investment income............. $ (0.160) $ (0.160) $ (0.160) $ (0.160) $ (0.190) From net realized gain on investments.. (1.840) (1.055) (0.625) (2.320) -- In excess of net realized gains........ -- -- (0.005) -- -- -------- -------- -------- -------- -------- Total distributions................ $ (2.000) $ (1.215) $ (0.790) $ (2.480) $ (0.190) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 12.650 $ 11.390 $ 12.720 $ 13.380 $ 14.730 ========= ========= ========= ========= ========= Total Return(3)............................. 28.98% (0.70%) 1.00% 8.02% 38.90% Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $ 49,134 $ 51,085 $ 88,349 $ 81,674 $ 80,065 Ratio of expenses to average net assets 1.07%(2) 0.99% 0.97% 1.01% 1.03% Ratio of net investment income to average net assets........................... 1.19% 1.46% 1.37% 1.20% 1.34% Portfolio turnover rate................ 83% 55% 53% 70% 9% (1)For the year ended December 31, 1995, the Principal Underwriter reduced its fee. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1995 Net investment income per share........ $ 0.150 ========= Ratios (As a percentage of average net assets): Expenses........................... 1.09% ========= Net investment income.............. 1.17% ========= (2) Custodian fees were reduced by credits resulting from cash balances the Trust maintained with the custodian (Note 2). The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, in accordance with reporting regulations in effect beginning in 1995. If these credits were considered, the ratio of net expenses to average daily net assets would have been reduced to 1.05%. (3) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the record date. See notes to financial statements
THE WRIGHT MANAGED EQUITY TRUST NOTES TO FINANCIAL STATEMENTS =============================================================================== (1) SIGNIFICANT ACCOUNTING POLICIES The Wright Managed Equity Trust (the Trust), issuer of Wright Selected Blue Chip Equities Fund (WBC) series, Wright Junior Blue Chip Equities Fund (WJBC) series, Wright Quality Core Equities Fund (WQC) series and Wright International Blue Chip (WIBC) series, is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end, management investment company. WIBC's financial statements have been prepared separately. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A. Investment Valuations -- Securities listed on securities exchanges or in the NASDAQ National Market are valued at closing sale prices. Unlisted or listed securities for which closing sale prices are not available are valued at the mean between the latest bid and asked prices. Short-term obligations maturing in sixty days or less are valued at amortized cost, which approximates value. Securities for which market quotations are unavailable are appraised at their fair value as determined in good faith by or at the direction of the Trustees. B. Federal Taxes -- The Trust's policy is to comply with the provisions of the Internal Revenue Code (the Code) available to regulated investment companies and distribute to shareholders each year all of its taxable income, including any net realized gain on investments. Accordingly, no provision for federal income or excise tax is necessary. C. Equalization -- The Funds follow the accounting practice known as equalization by which a portion of the proceeds from sales and costs of reacquisitions of Fund shares, equivalent on a per-share basis to the amount of undistributed net investment income on the date of the transaction, is credited or charged to undistributed net investment income. As a result, undistributed net investment income per share is unaffected by sales or reacquisitions of Fund shares. D. Distributions -- The Trust requires that differences in the recognition or classification of income between the financial statements and tax earnings and profits which result only in temporary overdistributions for financial statement purposes, are classified as distributions in excess of net investment income or accumulated net realized gains.Distributions in excess of tax basis earnings and profits are reported in the financial statements as a return of capital. Permanent differences between book and tax accounting for certain items may result in reclassification of these items. During the period ended December 31, 1995, the following amounts were reclassified due to differences between book and tax accounting created primarily by the unavailability of a tax benefit for operating losses, deferral of certain losses for tax purposes and character reclassifications between net investment income and net realized capital gains. Accumulated Undisributed Undistributed Net Net Realized Gain(Loss) on Investment Paid-in Investment and Foreign Income Capital Currency Transactions (Loss) ------------------------------------------------------------------ WBC $3,173,985 ($2,233,067) ($940,918) WJBC -- $70,117 ($70,117) WQC $1,147,831 ($839,006) ($308,825) ------------------------------------------------------------------
These changes had no effect on the net assets per share. E. Other -- Investment transactions are accounted for on the date the investments are purchased or sold. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is recorded on the accrual basis. F. Use of Estimates -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. (2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES The Trust has engaged Wright Investors' Service (Wright) to perform investment management, investment advisory, and other services. For its services, Wright is compensated based upon a percentage of average daily net assets which rate is adjusted as average daily net assets exceed certain levels. For the year ended December 31, 1995, the effective annual rate was 0.62% for WBC, 0.55% for WJBC, and 0.45% for WQC. The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as administrator of the Trust. Under the Administration Agreement, Eaton Vance is responsible for managing the business affairs of the Trust and is compensated based upon a percentage of average daily net assets which rate is reduced as average daily net assets exceed certain levels. For the year ended December 31, 1995, the effective annual rate was 0.13% for WBC, 0.20% for WJBC and 0.20% for WQC. The custodian fee was paid to Investors Bank & Trust Company (IBT) for its services as custodian of the Trust. Prior to November 10, 1995, IBT was an affiliate of Eaton Vance. Pursuant to the custodian agreement, IBT receives a fee reduced by credits which are determined based on the average daily cash balances the Trust maintains with IBT. All significant credit balances are reported as a reduction of expenses in the Statement of Operations. Certain of the Trustees and officers of the Trust are Trustees or officers of the above organizations. Except as to Trustees of the Trust who are not affiliated with Eaton Vance or Wright, Trustees and officers receive remuneration for their services to the Trust out of the fees paid to Eaton Vance and Wright. (3) DISTRIBUTION EXPENSES The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule 12b-1 of the Investment Company Act of 1940. The Plan provides that each of the Funds will pay Wright Investors' Service Distributors, Inc. (Principal Underwriter), a subsidiary of Wright Investors' Service, an annual rate of 2/10 of 1% of each Fund's average daily net assets for activities primarily intended to result in the sale of each Fund's shares. To enhance the net income of WJBC and WQC, the Principal Underwriter reduced its fee by $35,853 and $11,656, respectively. (4) SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in Fund shares were as follows: Year Ended December 31, 1995 1994 ---------------------------- ---------------------------- Shares Amount Shares Amount - -------------------------------------------------------------------------------------------------------------------------- WRIGHT SELECTED BLUE CHIP EQUITIES FUND -- Sold ............................................... 4,266,308 $ 65,320,088 5,636,130 $ 81,393,593 Issued to shareholders in payment of distributions declared.......................... 700,517 11,141,024 429,746 5,868,021 Reacquired........................................... (5,467,216) (84,642,460) (4,395,865) (62,193,314) --------- ------------ --------- ------------ Net increase (decrease)........................ (500,391) $ (8,181,348) 1,670,011 $ 25,068,300 ========== ============== ========== ============== WRIGHT JUNIOR BLUE CHIP EQUITIES FUND -- Sold ............................................... 225,623 $ 2,466,377 780,096 $ 9,079,764 Issued to shareholders in payment of distributions declared.......................... 444,836 4,715,097 201,483 2,267,954 Reacquired........................................... (1,650,724) (18,314,741) (3,315,481) (38,056,603) --------- ------------ --------- ------------ Net decrease................................... (980,265) $ (11,133,267) (2,333,902) $ (26,708,885) ========== ============== ========== ============== WRIGHT QUALITY CORE EQUITIES FUND -- Sold ............................................... 655,665 $ 8,101,383 1,640,109 $ 20,229,633 Issued to shareholders in payment of distributions declared.......................... 522,768 6,525,442 444,758 5,046,814 Reacquired........................................... (1,778,830) (22,926,194) (4,547,757) (56,546,019) --------- ------------ --------- ------------ Net decrease................................... (600,397) $ (8,299,369) (2,462,890) $ (31,269,572) ========== ============== ========== ==============
(5) INVESTMENT TRANSACTIONS Purchases and sales of investments, other than U.S. Government securities and short-term obligations and redemptions in kind, for the year ended December 31, 1995, were as follows: Wright Selected Blue Chip Wright Junior Blue Chip Wright Quality Core Equities Fund Equities Fund Equities Fund - ------------------------------------------------------------------------------------------------------------------------------- Purchases..................................... $ 88,785,915 $ 12,509,195 $ 42,336,223 ============ ============ ============ Sales......................................... $ 84,611,575 $ 28,188,478 $ 45,429,333 ============ ============ ============ Redemptions in Kind (at Value)................ $ 23,068,420 $-- $ 8,055,128 ============ ============ ============ In addition, the redemption in kind transactions resulted in realized gains of $4,591,935 and $817,863 for WBC and WQC, respectively.
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) of the investment securities owned at December 31, 1995, as computed on a federal income tax basis, are as follows: Wright Selected Blue Chip Wright Junior Blue Chip Wright Quality Core Equities Fund Equities Fund Equities Fund - ------------------------------------------------------------------------------------------------------------------------------- Aggregate cost................................ $174,224,296 $21,151,984 $39,875,069 ============ ============ ============ Gross unrealized appreciation................. $ 45,860,228 $ 5,383,164 $ 9,896,846 Gross unrealized depreciation................. (2,966,550) (669,341) (650,722) ----------- ----------- ----------- Net unrealized appreciation................... $ 42,893,678 $ 4,713,823 $ 9,246,124 ============ ============ ============ - --------------------------------------------------------------------------------------------------------------------------------
(7) FINANCIAL INSTRUMENTS The Trust may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include written options, forward foreign currency exchange contracts, and futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The Funds hold no such instruments at December 31, 1995. (8) LINE OF CREDIT The Trust participates with other funds managed by Wright in a line of credit with a bank which allows the Funds to borrow up to $20,000,000 collectively. The line of credit consists of a $10,000,000 committed facility and a $10,000,000 uncommitted facility. Interest is charged to each fund based on its borrowings, at a rate equal to the bank's base rate. In addition, the funds pay a prorated commitment fee computed at a rate of 1/4 of 1% of $10,000,000 less the value of any borrowing. Wright Junior Blue Chip Equities Fund had loans outstanding of $675,000 at December 31, 1995. INDEPENDENT AUDITORS' REPORT =============================================================================== To the Trustees and Shareholders of The Wright Managed Equity Trust: We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Wright Selected Blue Chip Equities Fund, Wright Junior Blue Chip Equities Fund, and Wright Quality Core Equities Fund (three of the four portfolios which constitute The Wright Managed Equity Trust) as of December 31, 1995, the related statements of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1995 and 1994, and the financial highlights for each of the years in the five-year period ended December 31, 1995. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of the securities owned as of December 31, 1995, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of each of the aforementioned Portfolios of The Wright Managed Equity Trust as of December 31, 1995, the results of their operations, the changes in their net assets, and their financial highlights for the respective stated periods in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Boston, Massachusetts February 2, 1996 - ------------------------------------------------------------------------------- Description of art work on back cover of this report Three thin vertical blue lines on the right side of page - ------------------------------------------------------------------------------- THE WRIGHT MANAGED EQUITY TRUST ANNUAL REPORTS OFFICERS AND TRUSTEES OF THE FUNDS Peter M. Donovan, President and Trustee H. Day Brigham, Jr., Vice President , Secretary and Trustee A. M. Moody III, Vice President and Trustee Judith R. Corchard, Vice President Winthrop S. Emmet, Trustee Leland Miles, Trustee Lloyd F. Pierce, Trustee George R. Prefer, Trustee Raymond Van Houtte, Trustee James L. O'Connor, Treasurer William J. Austin, Jr., Assistant Treasurer ADMINISTRATOR Eaton Vance Management 24 Federal Street Boston, Massachusetts 02110 INVESTMENT ADVISER Wright Investors' Service 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 PRINCIPAL UNDERWRITER Wright Investors' Service Distributors, Inc. 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 CUSTODIAN Investors Bank & Trust Company 89 South Street Boston, Massachusetts 02111 TRANSFER AND DIVIDEND DISBURSING AGENT First Data Investor Services Group Wright Managed Investment Funds P.O. Box 1559 Boston, Massachusetts 02104 INDEPENDENT AUDITORS Deloitte & Touche LLP 125 Summer Street Boston, Massachusetts 02110 This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of a mutual fund unless accompanied or preceded by a Fund's current prospectus. - ------------------------------------------------------------------------------- Description of art work on the front cover of the report Three thin vertical,dark blue, lines on the right side of the page. - ------------------------------------------------------------------------------- ANNUAL REPORT DECEMBER 31, 1995 WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND THE WRIGHT MANAGED INVESTMENT FUNDS THE WRIGHT MANAGED INVESTMENT FUNDS =============================================================================== WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) A broadly diversified portfolio of equities of well-established, non-U.S. companies meeting strict quality standards. The portfolio may buy common stocks traded on the securities exchange of the country in which the company is based or it may purchase American Depositary Receipts (ADR's) traded in the United States. The portfolio is denominated in U.S. dollars and investors should understand that fluctuations in foreign exchange rates may impact the value of their investment. - ------------------------------------------------------------------------------- TABLE OF CONTENTS =============================================================================== INVESTMENT OBJECTIVES...................Inside Front Cover LETTER TO SHAREHOLDERS................................. 1 WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) -- Dividend Distributions....................... 3 Portfolio of Investments..................... 4 Financial Statements......................... 7 REPORT TO SHAREHOLDERS =============================================================================== WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) The Wright International Blue Chip Equities Fund (WIBC) had a total investment return of 0.9% in the fourth quarter of 1995, trailing the 4.2% return for the FT/S&P Actuaries World Ex U.S. index. For all of 1995, however, the WIBC Fund's total return of 13.6% was well ahead of the 10.4% return in the FT/S&P Actuaries World Ex U.S. index. On average for the year, the effect of a modest weakening in the value of the dollar compared with the currencies of Europe had a slightly positive effect on the return to U.S. investors from foreign securities. In the fourth quarter, the dollar strengthened, reducing dollar returns. The WIBC Fund's relatively low exposure in Japan (about 11% of Fund assets vs about 40% in the FT/S&P Actuaries World Ex-U.S. index) limited its gain in the fourth quarter, when the Japanese market was strong. For the full year, low exposure to Japan helped, since the Japanese market was one of the world's weakest in 1995. Above-market positions in the United Kingdom, Denmark, Sweden and Hong Kong, all strong markets, boosted the Fund's full-year return. Over the past five years, the WIBC Fund has averaged a 10.0% annual rate of total investment return. While this compares favorably with the 9.3% average annual rate of return for the FT/S&P Actuaries World Ex U.S. index, it lags the 16.5% rate of return on U.S. stocks for the same period (S&P 500). Since 1990, foreign markets have generally lagged the U.S. market. Going forward, world stock markets stand to benefit from the global trend to lower interest rates, but slow (Japan) or slowing (Europe) economic growth may put some pressure on corporate profits durng 1996. The stocks in the WIBC Fund appear to be well positioned compared with foreign securities in general because of their superior quality and because they averaged a P/E ratio of 17.5 at the end of 1995 as compared with a P/E of 25 for the FT/S&P Actuaries World Ex U.S. index. It should be understood that performance data quoted herein represents past performance which is not predictive of future performance and that the investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Also, there are risks associated with international investing such as currency fluctuations and potential political instability. Sincerely, Peter M. Donovan President February 1996 WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND Growth of $10,000 invested 10/01/89* through 12/31/95 Annual Total Return ---------------------------------------------- Lst 1 Yr Lst 5 Yrs Since Incept* Wright Int'l Blue Chip Equities Fund +13.6% +10.0% +7.2% FT World Ex U.S. Index +10.4% +9.3% +3.7% Wright Int'l Fiduciary Equity Index +5.6% +8.2% +4.6% The cumulative total return of a U.S. $10,000 investment in the WRIGHT INT'L BLUE CHIP EQUITIES FUND on 09/30/89 would have grown to $15,486 by December 31, 1995.
The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Int'l Blue FT World Ex U.S Wright Int'l Fiduciary Chip Equities Fund Index Equity Index ------------------------------------------------------------------------------ 09/30/89 $10,000 $10,000 $10,000 12/31/89 $10,312 $10,490 $10,587 12/31/90 $9,599 $8,064 $8,946 12/31/91 $11,251 $9,138 $9,971 12/31/92 $10,807 $7,944 $8,383 12/31/93 $13,858 $10,507 $11,362 12/31/94 $13,631 $11,386 $12,576 12/31/95 $15,486 $12,575 $13,284 NOTES: *: For comparison with other averages, the investment results are shown from the first month-end since the Fund's inception. The investment results of Wright International Blue Chip Equities Fund are net of all fees and expenses charged to the Fund. No fees or expenses have been deducted from the other averages. The Total Investment Return is the % return of an initial $10,000 investment made at the beginning of the period to the ending redeemable value assuming all dividends and distributions are reinvested. Past performance is not predictive of future performance.
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) ===============================================================================
N.A.V. Distri- Distri- 12 Month 5 Year Cum. Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Ending Share $ P/S in Shares Owned Value Return Return Return (Annualized) (Annualized) - -------------------------------------------------------------------------------------------------------------------------- 9/14/89 $10.00 100.00 $1,000.00 12/94 13.09 $0.05 0.003867 105.48 1,380.78 -1.64% 5.74% 6.28% 1/95 12.68 105.48 1,337.53 -9.06% 5.56% 5.55% 2/95 13.02 105.48 1,373.39 -4.44% 7.06% 5.99% 3/95 13.73 105.48 1,448.28 4.89% 8.45% 6.91% 4/95 14.11 105.48 1,488.37 4.70% 9.21% 7.33% 5/95 14.39 105.48 1,517.90 9.11% 7.95% 7.58% 6/95 14.54 105.48 1,533.73 11.25% 7.37% 7.67% 7/95 15.08 105.48 1,590.69 10.82% 7.39% 8.22% 8/95 14.51 105.48 1,530.56 4.72% 8.71% 7.40% 9/95 14.74 105.48 1,554.82 8.72% 11.39% 7.58% 10/95 14.66 105.48 1,546.38 6.03% 9.31% 7.37% 11/95 14.47 105.48 1,526.34 9.96% 9.46% 7.05% 12/95 14.77 0.10 0.006873 106.21 1,568.69 13.61% 10.04% 7.42%
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 ============================================================================== Shares Value - ------------------------------------------------------------------------------ EQUITY INTERESTS -- 97.0% AUSTRALIA -- 3.6% Broken Hill Proprietary Co. ADR..... 17,930 $ 1,013,045 Broken Hill Proprietary Co.......... 41,293 582,776 Coles Myer Ltd ADR................. 62,551 1,618,507 Email Ltd........................... 600,760 1,427,983 F.H. Faulding (U.K.)................ 448,071 1,996,963 Lend Lease Corp. Ltd................ 141,038 2,042,879 ----------- $ 8,682,153 ----------- BELGIUM -- 2.3% Colruyt SA.......................... 6,700 $ 1,809,888 Delhaize Freres & Cie Le Lion SA.... 41,200 1,707,917 GB Inno - AFV....................... 654 28,000 GB Inno - BM SA..................... 44,850 1,968,950 ----------- $ 5,514,755 ----------- CANADA -- 2.7% Bombardier Inc. Class B............. 186,000 $ 2,454,828 British Columbia Telecom............ 112,300 2,058,515 Corel Corporation*.................. 139,500 1,813,500 ----------- $ 6,326,843 ----------- DENMARK -- 4.8% Berendsen Sophus A/S Class A........ 1,228 $ 137,438 Berendsen Sophus A/S Class B........ 16,630 1,868,707 Carlsburg A/S Pfd Class B........... 34,727 1,935,521 Icopal Group........................ 5,400 1,300,971 ISS International Service Sys. A/S.. 54,200 1,218,087 Novo-Nordisk AS..................... 19,000 2,596,187 Radiometer A/S...................... 32,250 2,307,713 ----------- $ 11,364,624 ----------- FRANCE -- 10.0% Bongrain SA......................... 3,500 $ 1,968,716 Carrefour Supermarche............... 4,200 2,543,068 Castorama Dubois Inv................ 14,300 2,337,311 Comptoirs Modernes SA............... 6,504 2,107,578 Docks De France SA.................. 11,200 1,698,232 Groupe Danone....................... 10,571 1,740,738 L'Air Liquide SA.................... 12,321 2,036,446 LeGrand SA.......................... 12,100 1,864,289 L'Oreal SA.......................... 7,350 1,963,795 LVMH Moet-Hennessy SA ADR.......... 55,220 2,312,338 Pernod Ricard SA.................... 23,280 1,320,390 Synthelabo.......................... 28,900 1,807,005 ----------- $ 23,699,906 ----------- GERMANY -- 3.3% Bayerische Motoren Werke AG......... 3,109 $ 1,590,752 Beiersdorf AG....................... 2,700 1,888,966 Douglas Holdings AG................. 64,000 2,254,368 Dyckerhoff AG....................... 3,950 846,920 Heidelberger Zement AG ............. 1,980 1,240,515 ----------- $ 7,821,521 ----------- HONG KONG -- 6.7% China Light & Power Co. Ltd. ADR.... 311,276 $ 1,433,177 Hang Lung Dev. Co. Ltd. ADR......... 206,400 1,641,706 Hang Seng Bank Ltd. ADR............. 267,195 2,393,052 Hong Kong Aircraft Engineering Co... 741,000 1,916,586 Hong Kong & China Gas Co. ADR....... 939,132 1,512,097 Hong Kong Electric Holdings Ltd.ADR 530,520 1,739,310 Johnson Electric Holdings Ltd....... 897,500 1,601,746 Kowloon Motor Bus Co. (1933) Ltd.... 979,200 1,595,593 Swire Pacific Ltd. ADR.............. 261,400 2,028,464 ----------- $ 15,861,731 ----------- IRELAND -- 1.6% Fyffes PLC.......................... 922,000 $ 1,591,722 Greencore Group PLC................. 255,000 2,286,734 ----------- $ 3,878,456 ----------- ITALY -- 0.6% Sirti SPA........................... 241,000 $ 1,354,999 ----------- JAPAN -- 10.5% Chudenko Corp....................... 48,300 $ 1,653,598 Daiichi Pharmaceutical Co., Ltd..... 98,000 1,393,230 Ito-Yokado Co., Ltd. ADR............ 8,750 2,153,594 Kurita Water Industries Ltd......... 81,000 2,154,255 Kyodo Printing Co. Ltd.............. 138,000 1,721,663 National House Industrial Co., Ltd.. 90,000 1,645,068 Nintendo Corporation Ltd............ 26,700 2,027,031 Ono Pharmaceutical Co. Ltd.......... 29,000 1,113,443 Santen Pharmaceutical Co., Ltd...... 66,000 1,500,000 Seven Eleven Japan Co., Ltd......... 19,800 1,394,043 Taisho Pharmaceutical Co., Ltd...... 75,000 1,479,691 Takasago Thermal Engineering Co..... 93,000 1,663,927 Yamanouchi Pharmaceutical Co., Ltd.. 92,000 1,975,242 York-Benimaru Co., Ltd.............. 42,000 1,604,449 Yurtec Corp......................... 82,950 1,452,026 ----------- $ 24,931,260 ----------- MALAYSIA -- 4.7% Amalgamated Steel Mills Berhad......2,298,000 $ 1,710,131 Genting Berhad...................... 200,000 1,669,489 Guinness Anchor Berhad.............. 988,000 1,851,746 Hong Leong Indus Berhad............. 363,000 1,929,559 Perlis Plantations Berhad........... 532,000 1,665,315 Sime Darby Berhad................... 829,200 2,203,843 ----------- $ 11,030,083 ----------- MEXICO -- 1.8% Cifra S.A. ADR..................... 895,000 $ 940,735 Kimberly Clark De Mexico ADR........ 64,900 1,962,634 Telefonos de Mexico ADR............ 40,400 1,287,750 ----------- $ 4,191,119 ----------- NETHERLANDS -- 9.8% CSM N.V............................ 47,095 $ 2,050,028 Elsevier Dutch Certificates......... 159,900 2,127,890 Getronics N.V....................... 48,014 2,239,319 Hagemeyer N.V....................... 37,740 1,966,676 Heineken N.V........................ 13,375 2,367,926 Koninklijke Ahold N.V............... 63,176 2,573,240 Nutricia............................ 29,000 2,340,775 Polygram............................ 28,700 1,520,577 Unilever N.V........................ 12,900 1,808,936 Verenigde Neder. Uitgeversbedrijven. 16,600 2,274,100 Wolters Kluwer N.V.................. 20,400 1,925,701 ----------- $ 23,195,168 ----------- NEW ZEALAND -- 0.8% Wilson & Horton..................... 320,000 $ 1,913,302 ----------- SINGAPORE -- 2.4% Asia Pacific Breweries Ltd.......... 272,000 $ 1,615,499 Cycle & Carriage Ltd. Ord........... 199,000 1,983,950 Singapore Press Holdings Ltd........ 115,200 2,036,343 ----------- $ 5,635,792 ----------- SOUTH AFRICA -- 0.9% South African Breweries Ltd......... 58,500 $ 2,142,299 ----------- SPAIN -- 2.6% Banco Popular Espanol............... 11,600 $ 2,133,980 Empresa Nac de Electicidad SA....... 40,600 2,293,767 Repsol S.A.......................... 55,740 1,822,093 ----------- $ 6,249,840 ----------- SWEDEN -- 3.6% Astra AB Class B.................... 58,500 $ 2,317,530 Gambro AB Series B.................. 121,700 2,309,802 Gullspangs Kraft - "B" Free......... 155,000 2,264,734 Hennes & Mauritz AB Class B........ 31,600 1,761,175 ----------- $ 8,653,241 ----------- SWITZERLAND -- 4.7% Nestle SA ADR....................... 34,600 $ 1,918,459 Roche Holding AG - Genussch......... 270 2,135,798 Sandoz AG........................... 2,800 2,563,218 SMH-Sch. Ges. Fuer AG............... 14,750 1,930,779 SMH-Sch. Ges. Fuer - New AG......... 470 281,132 Societe Generale de Surv. Hold. SA.. 1,175 2,332,582 ----------- $ 11,161,968 ----------- UNITED KINGDOM -- 19.6% Allied Colloids Group PLC........... 920,000 $ 1,900,251 BTR*................................ 4,178 4,315 BTR Ltd. PLC........................ 359,908 1,838,903 BTR Ltd.*........................... 3,287 1,047 Cable & Wireless PLC ADR........... 99,700 2,106,163 Christian Salvesen PLC.............. 347,200 1,428,884 Farnell Electronics PLC............. 182,700 2,038,622 Grand Metropolitan PLC ADR......... 55,900 1,607,125 Halma PLC........................... 709,333 1,927,790 Kwik Save Group PLC................. 173,000 1,343,345 LaPorte PLC......................... 167,070 1,738,380 Marks & Spencer PLC................. 60,700 424,202 Marks & Spencer PLC ADR ............ 30,700 1,286,947 Morrison (Wm.) Supermarket.......... 850,000 1,848,070 Nurdin & Peacock PLC................ 624,000 1,477,835 Pearson PLC......................... 207,076 2,005,107 Polypipe PLC........................ 720,000 1,967,962 Powerscreen Int'l................... 433,100 2,602,979 Reckitt & Colman PLC................ 157,176 1,739,171 Sainsbury (J.) PLC.................. 267,292 1,629,285 Scapa Group PLC..................... 561,873 1,937,147 Securicor Group -A-................. 100,000 1,374,405 Seibe PLC........................... 220,724 2,719,994 Smith & Nephew PLC.................. 686,730 1,994,339 Smiths Industries PLC............... 210,100 2,075,174 Tesco PLC........................... 417,060 1,923,652 Weir Group PLC...................... 407,700 1,332,798 Wolseley PLC........................ 317,600 2,224,480 ----------- $ 46,498,372 ----------- TOTAL EQUITY INTERESTS -- 97.0% (identified cost, $189,163,858) $ 230,107,432 RESERVE FUND -- 2.7% Face Amount ------------ American Express Corp., 5.65%, 1/02/96 (at amortized cost)...............$6,470,000 6,470,000 ----------- TOTAL INVESTMENTS -- 99.7% (identified cost, $195,633,858) $236,577,432 OTHER ASSETS, LESS LIABILITIES -- 0.3% 598,514 ----------- NET ASSETS -- 100% $237,175,946 ============ * Non-income-producing security. ADR: American Depository Receipts
See notes to financial statements WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND ============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 - ------------------------------------------------------------------------------ ASSETS: Investments -- Identified cost........................ $195,633,858 Unrealized appreciation................ 40,943,574 ------------ Total value (Note 1A)................ $236,577,432 Cash..................................... 2,628 Dividends and interest receivable........ 436,970 Receivable for refundable foreign taxes withheld............................... 373,785 Receivable for fund shares sold.......... 126,823 ------------ Total Assets........................... $237,517,638 ------------ LIABILITIES: Payable for fund shares reacquired....... $ 302,551 Trustees fees payable.................... 370 Custodian fee payable (Note 3)........... 25,706 Accrued expenses and other liabilities... 13,065 ------------ Total Liabilities......................$ 341,692 ------------ NET ASSETS.................................. $237,175,946 ============= NET ASSETS CONSIST OF: Proceeds from sales of shares (including the market value of securities received in exchange for Fund shares and shares issued to shareholders in payment of distributions declared), less cost of shares reacquired........................ $198,077,233 Accumulated undistributed net realized loss on investments and foreign currency (computed on the basis of identified cost) (3,217,931) Unrealized appreciation of investments and trans- lation of assets and liabilities in foreign currency (computed on the basis of identified cost) 40,958,703 Undistributed net investment income......... 1,357,941 ------------ Net assets applicable to outstanding shares $237,175,946 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING.............................. 16,057,236 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $14.77 =============
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------- INVESTMENT INCOME: Income -- Dividends.............................. $ 5,476,637 Interest............................... 215,791 Less: Foreign taxes................... (707,978) ------------ Total Income......................... $ 4,984,450 ------------ Expenses -- Investment Adviser fee (Note 2)........ $ 1,682,897 Administrator fee (Note 2)............. 270,853 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 2,088 Custodian fee (Note 2)................. 306,333 Transfer and dividend disbursing agent fees 21,522 Shareholder communication expense...... 23,696 Distribution expenses (Note 3)......... 436,177 Audit services......................... 37,000 Legal services......................... 1,445 Registration costs..................... 17,063 Printing............................... 4,395 Interest expense....................... 2,878 Miscellaneous.......................... 10,316 ------------ Total Expenses....................... $ 2,816,663 ------------ Net Investment Income.............. $ 2,167,787 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized loss on investment and foreign currency transactions (identified cost basis) .......................... $ (650,735) Change in unrealized appreciation of investments and translation of assets and liabilities in foreign currencies.. 25,147,505 ------------ Net realized and unrealized gain on investments and foreign currency... $ 24,496,770 ------------ Net increase in net assets from operations.................... $ 26,664,557 =============
See notes to financial statements WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND ======================================================================================================================= Year Ended December 31, ---------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1995 1994 - ----------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income........................................................ $ 2,167,787 $ 1,821,338 Net realized gain (loss) on investment and foreign currency transactions..... (650,735) 238,478 Change in unrealized appreciation of investments and translation of assets and liabilities in foreign currencies............................ 25,147,505 (7,495,702) ------------ ------------ Increase (decrease) in net assets from operations.................... $ 26,664,557 $ (5,435,886) ------------ ------------ Undistributed net investment income included in price of shares sold and redeemed (Note 1D).................................. $ 182,554 $ 655,170 ------------ ------------ Distributions to shareholders from net investment income....................... $ (1,602,294) $ (1,467,856) ------------ ------------ Net increase from fund share transactions (exclusive of amounts allocated to net investment income) (Note 4)........... $ 11,699,493 $ 106,409,645 ------------ ------------ Net increase in net assets............................................ $ 36,944,310 $ 100,161,073 NET ASSETS: At beginning of year........................................................... 200,231,636 100,070,563 ------------ ------------ At end of year................................................................. $ 237,175,946 $ 200,231,636 ============== ============== UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 1,357,941 $ 1,579,133 ============== ==============
See notes to financial statements WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND ============================================================================================================================ Year Ended December 31, --------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 - ---------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 13.090 $ 13.410 $ 10.520 $ 11.040 $ 9.520 --------- --------- --------- --------- --------- Income (loss) from Investment Operations: Net investment income.................. $ 0.142 $ 0.127 $ 0.107 $ 0.094 $ 0.115 Net realized and unrealized gain (loss) on investments..................... 1.638 (0.347) 2.853 (0.524) 1.515 --------- --------- --------- --------- --------- Total income (loss) from investment operations......... $ 1.780 $ (0.220) $ 2.960 $ (0.430) $ 1.630 --------- --------- --------- --------- --------- Less Distributions: From net investment income............. $ (0.100) $ (0.100) $ (0.070) $ (0.090) $ (0.110) --------- --------- --------- --------- --------- Net asset value, end of year................ $ 14.770 $ 13.090 $ 13.410 $ 10.520 $ 11.040 ========== ========== ========== ========== ========== Total Return(1)............................. 13.61% (1.64%) 28.22% (3.94%) 17.21% Ratios/Supplemental Data Net assets, end of year (000 omitted).. $237,176 $200,232 $100,071 $ 74,409 $ 51,802 Ratio of expenses to average daily net assets............................. 1.29% 1.31% 1.46% 1.51% 1.67% Ratio of net investment income to average daily net assets................... 0.99% 1.00% 0.67% 0.81% 1.12% Portfolio Turnover Rate................ 12% 12% 30% 15% 23% (1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the record date.
See notes to financial statements WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND NOTES TO FINANCIAL STATEMENTS (1) SIGNIFICANT ACCOUNTING POLICIES Wright International Blue Chip Equities Fund (WIBC) is a diversified series of The Wright Managed Equity Trust (the "Trust"). The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end, management investment company. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A. Investment Valuations -- Securities listed on securities exchanges or in the NASDAQ National Market are valued at closing sale prices. Unlisted or listed securities for which closing sale prices are not available are valued at the mean between the latest bid and asked prices. Short-term obligations maturing in 60 days or less are valued at amortized cost, which approximates value. Securities for which market quotations are unavailable are appraised at their fair value as determined in good faith by or at the direction of the Trustees. B. Foreign Currency Translation -- Investment security valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses are translated into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions. C. Federal Taxes -- WIBC'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 all of its taxable income, including any net realized gain on investments. Accordingly, no provision for federal income or excise tax is necessary. Withholding taxes on foreign dividends have been provided for in accordance with the Trust's understanding of the applicable country's tax rules and rates. At December 31, 1995, WIBC, for federal income tax purposes, had a capital loss carryover of $3,217,931, which will reduce taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distribution to shareholders which would otherwise be necessary to relieve WIBC of any liability for federal income or excise tax. Pursuant to the Code, such capital loss carryover will expire as follows: 1999 2000 2001 2003 ----------------------------------------------------- $924,334 $1,404,904 $250,866 $637,827 ----------------------------------------------------- D. Equalization -- WIBC follows the accounting practice known as equalization by which a portion of the proceeds from sales and costs of reacquisitions of Fund shares, equivalent on a per-share basis to the amount of undistributed net investment income on the date of the transaction, is credited or charged to undistributed net investment income. As a result, undistributed net investment income per share is unaffected by sales or reacquisitions of Fund shares. E. Distributions -- The Trust requires that differences in the recognition or classification of income between the financial statements and tax earnings and profits which result in temporary overdistributions for financial statement purposes, are classified as distributions in excess of net investment income or accumulated net realized gain. During the year ended December 31, 1995, the following amounts were reclassified due to the differences between book and tax accounting created primarily by the utilization of redemption distributions for tax purposes and character reclassifications between net investment income and net realized capital gains. Accumulated Undistributed Undistributed Paid-in Net Realized Loss on Investment Net Investment Capital and Foreign Currency Transactions Income ---------------------------------------------------------------- $951,294 $17,945 $(969,239) ---------------------------------------------------------------- These changes had no effect on the net assets per share. F. Other -- Investment transactions are accounted for on the date the investments are purchased or sold. Dividend income and distributions to shareholders are recorded on the ex-dividend date. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. Interest income is recorded on the accrual basis. G. Use of Estimates -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. (2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES The Trust has engaged Wright Investors' Service (Wright) to perform investment management, investment advisory, and other services. For its services, Wright is compensated based upon a percentage of average daily net assets which rate is adjusted as average daily net assets exceed certain levels. For the year ended December 31, 1995, the effective annual rate was 0.77% for WIBC. The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as administrator of the Trust. Under the Administration Agreement, Eaton Vance is responsible for managing the business affairs of the Trust and is compensated based upon a percentage of average daily net assets which rate is reduced as average daily net assets exceed certain levels. For the year ended December 31, 1995, the effective annual rate was 0.12% for WIBC. The custodian fee was paid to Investors Bank & Trust Company (IBT) for its services as custodian of the Trust. Prior to November 10, 1995, IBT was an affiliate of Eaton Vance. Pursuant to the custodian agreement, IBT receives a fee reduced by credits which are determined based on the average daily cash balances the Trust maintains with IBT. All significant credits are reported as a reduction of expenses in the Statement of Operations. For the year ended December 31, 1995, there were no such reported amounts. Certain of the Trustees and officers of the Trust are Directors/Trustees and/or officers of the above organizations. Except as to Trustees of the Trust who are not affiliated with Wright or Eaton Vance, Trustees and officers receive remuneration for their services to the Trust out of the fees paid to Wright and Eaton Vance. See Note 3. (3) DISTRIBUTION EXPENSES The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule 12b-1 of the Investment Company Act of 1940. The Plan provides that WIBC will pay the Principal Underwriter, Wright Investors' Service Distributors, Inc., a subsidiary of Wright, an annual rate of 2/10 of 1% of WIBC's average daily net assets for activities primarily intended to result in the sale of WIBC's shares. (4) SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in WIBC shares were as follows: Year Ended December 31, ------------------------------------------------------------ 1995 1994 ---------------------------- --------------------------- Shares Amount Shares Amount - ------------------------------------------------------------------------------------------------------------------------- Sold ................................................. 4,605,546 $ 64,343,250 12,245,362 $165,447,724 Issued to shareholders in payment of distributions declared.............................................. 78,962 1,136,990 88,270 1,142,033 Reacquired............................................. (3,919,612) (53,780,747) (4,503,339) (60,180,112) ----------- ------------ ------------ ------------- Net increase..................................... 764,896 $ 11,699,493 7,830,293 $106,409,645 ============ ============= ============= =============
(5) INVESTMENT TRANSACTIONS Purchases and sales of investments, other than short-term obligations, for the year ended December 31, 1995, were as follows: - ------------------------------------------------------ Purchases............................ $32,858,249 ============= Sales................................ $25,390,082 ============= - ------------------------------------------------------ (6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) of the investment securities owned at December 31, 1995, as computed on a federal income tax basis, are as follows: - --------------------------------------------------------- Aggregate cost....................... $195,633,858 ============= Gross unrealized appreciation........ $ 48,243,565 Gross unrealized depreciation........ (7,299,991) ------------ Net unrealized appreciation.......... $ 40,943,574 ============= - -------------------------------------------------------- (7) FINANCIAL INSTRUMENTS WIBC may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include written options, forward foreign currency exchange contracts, and futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. WIBC holds no such instruments at December 31, 1995. (8) LINE OF CREDIT WIBC participates with other funds managed by Wright in a line of credit with a bank which allows the Funds to borrow up to $20,000,000 collectively. The line of credit consists of a $10,000,000 committed facility and a $10,000,000 uncommitted facility. Interest is charged to each fund based on its borrowings, at a rate equal to the bank's base rate. In addition, the funds pay a prorated commitment fee computed at a rate of 1/4 of 1% of $10,000,000 less the value of any borrowing. WIBC did not have any significant borrowings under the line of credit during the year ended December 31, 1995. (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. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of WIBC, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the United States. Settlement of securities transactions in foreign countries may be delayed and is generally less frequent than in the United States, which could affect the liquidity of WIBC's assets. WIBC may be unable to sell securities where the registration process is incomplete and may experience delays in receipt of dividends. INDEPENDENT AUDITORS' REPORT To the Trustees and Shareholders of The Wright Managed Equity Trust: We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Wright International Blue Chip Equities Fund of The Wright Managed Equity Trust as of December 31, 1995 and the related statement of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1995 and 1994, and the financial highlights for each of the years in the five-year period ended December 31, 1995. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of the securities owned as of December 31, 1995, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of Wright International Blue Chip Equities Fund of The Wright Managed Equity Trust as of December 31, 1995, the results of its operations, the changes in its net assets, and its financial highlights for the respective stated periods in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Boston, Massachusetts February 2, 1996 - ----------------------------------------------------------------------------- Description of art work on the back cover of the report Three thin vertical,dark blue lines on the right side of the page. - ----------------------------------------------------------------------------- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND ANNUAL REPORT OFFICERS AND TRUSTEES OF THE FUNDS Peter M. Donovan, President and Trustee H. Day Brigham, Jr., Vice President, Secretary and Trustee A. M. Moody III, Vice President and Trustee Judith R. Corchard, Vice President Winthrop S. Emmet, Trustee Leland Miles, Trustee Lloyd F. Pierce, Trustee George R. Prefer, Trustee Raymond Van Houtte, Trustee James L. O'Connor, Treasurer William J. Austin, Jr., Assistant Treasurer ADMINISTRATOR Eaton Vance Management 24 Federal Street Boston, Massachusetts 02110 INVESTMENT ADVISER Wright Investors' Service 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 PRINCIPAL UNDERWRITER Wright Investors' Service Distributors, Inc. 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 CUSTODIAN Investors Bank & Trust Company 89 South Street Boston, Massachusetts 02111 TRANSFER AND DIVIDEND DISBURSING AGENT First Data Investor Services Group Wright Managed Investment Funds P.O. Box 1559 Boston, Massachusetts 02104 INDEPENDENT AUDITORS Deloitte & Touche LLP 125 Summer Street Boston, Massachusetts 02110 This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of a mutual fund unless accompanied or preceded by a Fund's current prospectus. - ------------------------------------------------------------------------------- Description of the art work on the front cover of the report Three thin vertical red lines on the right side of the page. - ------------------------------------------------------------------------------- ANNUAL REPORT DECEMBER 31, 1995 THE WRIGHT MANAGED INCOME TRUST THE WRIGHT MANAGED INVESTMENT FUNDS THE WRIGHT MANAGED INVESTMENT FUNDS =============================================================================== WRIGHT "TRUE BLUE CHIP" INVESTMENT FUNDS INCLUDE A DIVERSIFIED COLLECTION OF PROFESSIONALLY MANAGED FIXED INCOME VEHICLES INTENDED FOR INVESTMENT PORTFOLIO USE. THEY CAN BE USED SINGLY OR IN COMBINATION TO ACHIEVE VIRTUALLY ANY OBJECTIVE. FURTHER, AS THEY ARE ALL "NO-LOAD" FUNDS (NO COMMISSIONS OR SALES CHARGES), STRATEGIES CAN BE ALTERED WITHOUT INCURRING ANY SALES CHARGES, AS DESIRED TO ADJUST TO CHANGING MARKET CONDITIONS OR CHANGING REQUIREMENTS. FIVE FIXED-INCOME FUNDS THERE ARE FIVE FIXED-INCOME PORTFOLIOS OF BONDS AND OTHER DEBT SECURITIES, EACH OF WHICH HAS A DIFFERENT INVESTMENT OBJECTIVE AND DIFFERENT INVESTMENT POLICIES. INVESTORS MAY SELECT ANY OF THE PORTFOLIOS OR MAY SPREAD THEIR INVESTMENTS AMONG MORE THAN ONE. WRIGHT U.S. TREASURY FUND (WUSTB) is invested in U.S. Treasury bills, notes and bonds, which are guaranteed as to principal and interest by the full faith and credit of the U.S. Government, and which are not expected to be taxable by certain state or municipal governments. Maturities are relatively long. Dividends are accrued daily and paid monthly. WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB), like WUSTB, is a diversified portfolio concentrating on bonds and other obligations of the U.S. Government, which are guaranteed as to principal and interest by the full faith and credit of the U.S. Government. The average weighted maturity varies from one to five years. This portfolio is designed to appeal to the investor seeking a high level of income that is normally somewhat less variable and normally somewhat higher than that available from short-term money market instruments and who is also tolerant of modest fluctuation in capital (i.e. compared with somewhat greater fluctuation likely with longer term fixed income securities). Dividends are accrued daily and paid monthly. WRIGHT TOTAL RETURN BOND FUND (WTRB) is a diversified portfolio of quality corporate bonds and other debt securities of varying maturities which, in the Adviser's opinion, will achieve the portfolio objective of best total return, i.e. the best total of ordinary income plus capital appreciation. Accordingly, investment selections and maturities may differ depending on the particular phase of the interest rate cycle. Dividends are accrued daily and paid monthly. WRIGHT INSURED TAX-FREE BOND FUND (WTFB) is a diversified portfolio invested in high-grade municipal bonds and other intermediate or long-term debt securities that provide current interest income which is exempt from Federal income taxes. The portfolio limits its investments to obligations exempt from Federal income tax which at the time of purchase are insured as to principal and interest. The portfolio will have an average weighted maturity that produces the best compromise between generous return and stability of principal. Dividends are accrued daily and paid monthly. WRIGHT CURRENT INCOME FUND (WCIF) may be invested in a variety of securities and may use a number of strategies to produce a high level of income with reasonable stability of principal. Currently, this portfolio is primarily invested in mortgage Participation Certificates issued by the Government National Mortgage Association (GNMA). GNMA guarantees that the fund will receive timely principal and interest payments. The Fund reinvests all principal payments. Dividends are accrued daily and paid monthly. TABLE OF CONTENTS =============================================================================== INVESTMENT OBJECTIVES.....................Inside Front Cover LETTER TO SHAREHOLDERS................................... 1 WRIGHT MANAGED INCOME FUNDS -- Dividend Distributions....................... 5 WRIGHT U.S. TREASURY FUND (WUSTB) -- Portfolio of Investments..................... 7 Financial Statements......................... 8 WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB) -- Portfolio of Investments.................... 11 Financial Statements.........................12 WRIGHT TOTAL RETURN BOND FUND (WTRB) -- Portfolio of Investments.....................15 Financial Statements.........................18 WRIGHT INSURED TAX FREE BOND FUND (WTFB) -- Portfolio of Investments.....................21 Financial Statements.........................24 WRIGHT CURRENT INCOME FUND (WCIF) -- Portfolio of Investments.....................27 Financial Statements.........................32 REPORT TO SHAREHOLDERS =============================================================================== WRIGHT U.S. TREASURY FUND The Wright U.S. Treasury Fund (WUSTB) earned a 7.4% total investment return in the fourth quarter of 1995, double the 3.6% return reported for the Lipper Fixed-Income Fund average. For all of 1995, the WUSTB had a total investment return of 28.2%. Over the past ten years, it has averaged a 10.2% annual rate of return, comparing favorably with the 8.1% annual rate of return in the Lipper Bond Fund average. As its name suggests, the U.S. Treasury Fund holds U.S. Treasury securities exclusively. At the end of 1995, average yield to maturity was 6.2%, down from 6.8% on September 30. Currently, Fund holdings have an average maturity of 18.9 years and an average duration of 10.1 years, down slightly from 19.2 years and 10.2 years, respectively, at September 30. Treasury yields in the 20-year maturity range declined about 60 basis points over the course of the fourth quarter of 1995. Wright believes that a resolution of the budget impasse in Washington and additional Fed easing would clear the way for a further reduction in long-term interest rates, although of a smaller magnitude than the decline seen in 1995. With inflation not expected to exceed 3% any time soon and further Federal Reserve easing likely early in 1996, long-term bond yields could decline another 25-50 basis points over the course of 1996, in Wright's view. WRIGHT TOTAL RETURN BOND FUND After a temporary bout of weakness in the third quarter, the bull market in bonds resumed in the final period of 1995, with yields on 10-year U.S. Treasury bonds declining 60 basis points to 26-month lows. Declining interest rates propelled the Wright Total Return Bond Fund (WTRB) to an investment return of 5.7% for the fourth quarter, one-to-two percentage points above the Lehman Government/Corporate Bond average (4.7%) and the Lipper Fixed-Income Fund average (3.6%). The strong fourth quarter brought the return on the WTRB for all of 1995 to 22.0%, well above the 15.2% return for the Lipper Fixed-Income Fund average. For the five years through December 1995, the WTRB Fund's 9.4% average compound annual rate of total investment return is nominally ahead of the Lipper Fund average return. Since it began in July 1983, the Wright Total Return Bond Fund has averaged a 10.5% annual rate of total investment return, more than one percentage point ahead of the 9.2% return for the average Lipper Bond Fund over the same period. At the end of 1995, WTRB Fund's holdings consisted of 49% U.S. Treasury securities, 12% U.S. government agencies and 39% high-quality corporate bonds. The Fund's average maturity was moved up to 11.4 years over the fourth quarter from 9.9 years at the end of the third quarter, while duration climbed to 7.5 years from 6.8 years. At December 31, 1995, WTRB's average yield to maurity was 6.0%, versus 6.5% three months earlier. WRIGHT U.S. TREASURY NEAR TERM FUND Yields on Treasury securities in the two-to-three year maturity range declined nearly 70 basis points during the fourth quarter of 1995. The Wright U.S. Treasury Near Term Fund (WNTB), with an average maturity of 2.5 years at the end of 1995 (down from 2.8 years three months earlier), saw its average yield to maturity decline to 5.3% from 5.9%. The WNTB Fund earned a total return of 2.6% in the final quarter of the year, bringing its full-year return to 11.9%. Since inception in 1983, it has averaged an 8.5% annual rate of total return. At the end of the fourth quarter, 75% of WNTB's holdings were U.S. Treasury securities and 25% were government agency issues. Wright believes that the Federal Reserve, having reduced interest rates twice during 1995, will continue to ease monetary policy in early 1996, resulting in further declines in short-term interest rates. While returns on near-term bonds are likely to exceed those on Treasury bills in the year ahead, they are not likely to match those earned in 1995. WRIGHT CURRENT INCOME FUND Mortgage rates declined over 50 basis points during the fourth quarter of 1995 and over 200 basis points for the full year. As a result of these declines, the Wright Current Income Fund (WCIF) had total returns of 3.4% in the final quarter of 1995 (versus 3.6% estimated for the Morningstar Government Mortgage Fund average) and 17.5% for all of 1995 (15.7% for the Morningstar average). The Wright Current Income Fund, which pays its dividend monthly, had a current yield of 6.5% at the end of 1995, down from 6.6% at September 30. With inflation not likely to get much above 3% in the near future, the Fund's yield, along with its stability, are attractive for income-oriented investors, in Wright's view. WCIF holds only mortgage-backed securities (Ginnie Maes) backed by the full faith and credit of the U.S. government; it does not hold any derivative securities. WRIGHT INSURED TAX FREE BOND FUND The Wright Insured Tax Free Bond Fund (WTFB) holds AAA-insured tax-exempt municipal securities. For the three months through December 1995, WTFB had a total return of 2.1%, compared with a 4.2% return estimated for the average insured tax free bond fund. For all of 1995, WTFB's 11.6% return compares with 15.1% for the average tax exempt fund. WTFB's average annual rate of return since inception in April 1985 is 7.2%, as compared with 8.4% for the average insured tax free bond fund over the same period. At December 31, the average yield to maturity of WTFB holdings was 4.9%, versus 5.4% three months earlier; the average maturity of Fund holdings was 8.4 years, little changed for the quarter. It should be understood that performance data quoted herein represents past performance and that the investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Sincerely, Peter M. Donovan President February 1996 WRIGHT MANAGED INCOME TRUST - BOND FUNDS WRIGHT U.S. TREASURY FUND Growth of $10,000 invested 12/31/85 through 12/31/95 Annual Total Return ------------------------------------------ Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright U.S. Treasury Fund +28.2% +11.3% +10.2% Lehman Gov't/Corp Index +19.2% +9.8% +9.6% Lipper Fixed Income Funds +15.2% +9.3% +8.1% The cumulative total return of a U.S. $10,000 investment in the WRIGHT U.S. TREASURY FUND on 12/31/85 would have grown to $26,448 by December 31, 1995.
The following plotting points are used for comparison in the total investment return mountain chart. Date Wright U.S. Lehman Gov't/Co Lipper Fixed Treasury Fund Index Income Funds -------------------------------------------------------------------- 12/31/85 $10,000 $10,000 $10,000 12/31/86 $11,991 $11,562 $11,270 12/31/87 $11,636 $11,827 $11,413 12/31/88 $12,520 $12,723 $12,316 12/31/89 $14,557 $14,535 $13,476 12/31/90 $15,478 $15,739 $14,050 12/31/91 $18,196 $18,276 $16,603 12/31/92 $19,482 $19,662 $17,910 12/31/93 $22,580 $21,831 $19,642 12/31/94 $20,633 $21,065 $18,998 12/31/95 $26,448 $25,119 $21,889
WRIGHT MANAGED INCOME TRUST - BOND FUNDS WRIGHT U.S. TREASURY NEAR TERM FUND Growth of $10,000 invested 12/31/85 through 12/31/95 Annual Total Return ------------------------------------------- Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright U.S. Treasury Near Term Fund +11.9% +7.1% +7.6% Lehman Gov't/Corp Index +19.2% +9.8% +9.6% Morningstar Gov't (1-5 Yrs) Funds e+11.4% e+6.7% e+7.4% The cumulative total return of a U.S. $10,000 investment in the WRIGHT U.S. TREASURY NEAR TERM FUND on 12/31/85 would have grown to $20,724 by December 31, 1995.
The following plotting points are used for comparison in the total investment return mountain chart. Date Wright U.S. Lehman Gov't/Corp Morningstar Gov't Treasury Near Term Index (1-5 Yrs) Funds ---------------------------------------------------------------------------- 12/31/85 $10,000 $10,000 $10,000 12/31/86 $11,312 $11,562 $11,221 12/31/87 $11,576 $11,827 $11,549 12/31/88 $12,242 $12,723 $12,314 12/31/89 $13,609 $14,535 $13,644 12/31/90 $14,730 $15,739 $14,818 12/31/91 $16,656 $18,276 $16,760 12/31/92 $17,698 $19,662 $17,692 12/31/93 $19,106 $21,831 $18,774 12/31/94 $18,515 $21,065 $18,390 12/31/95 $20,724 $25,119 $20,484
WRIGHT MANAGED INCOME TRUST - BOND FUNDS WRIGHT TOTAL RETURN BOND FUND Growth of $10,000 invested 12/31/85 through 12/31/95 Annual Total Return ------------------------------------------ Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Total Return Bond Fund +22.0% +9.4% +8.9% Lehman Gov't/Corp Index +19.2% +9.8% +9.6% Lipper Fixed Income Funds +15.2% +9.3% +8.1% The cumulative total return of a U.S. $10,000 investment in the WRIGHT TOTAL RETURN BOND FUND on 12/31/85 would have grown to $23,424 by December 31, 1995.
The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Total Return Lehman Gov't/Co Lipper Fixed Bond Fund Index Income Funds -------------------------------------------------------------------- 12/31/85 $10,000 $10,000 $10,000 12/31/86 $12,054 $11,562 $11,270 12/31/87 $11,676 $11,827 $11,413 12/31/88 $12,522 $12,723 $12,316 12/31/89 $14,223 $14,535 $13,476 12/31/90 $14,976 $15,739 $14,050 12/31/91 $17,279 $18,276 $16,603 12/31/92 $18,510 $19,662 $17,910 12/31/93 $20,551 $21,831 $19,642 12/31/94 $19,205 $21,065 $18,998 12/31/95 $23,424 $25,119 $21,889
WRIGHT MANAGED INCOME TRUST - BOND FUNDS WRIGHT TAX-FREE BOND FUND Growth of $10,000 invested 12/31/85 through 12/31/95 Annual Total Return ------------------------------------------ Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Tax-Free Bond Fund +11.6% +7.0% +7.1% Lehman Gov't/Corp Index +19.2% +9.8% +9.6% Lehman Municipal Bond index +17.5% +8.6% +9.2% The cumulative total return of a U.S. $10,000 investment in the WRIGHT TAX-FREE BOND FUND on 12/31/85 would have grown to $19,871 by December 31, 1995.
The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Tax-Free Lehman Gov't/Corp Lehman Municipal Bond Fund Index Bond index --------------------------------------------------------------------- 12/31/85 $10,000 $10,000 $10,000 12/31/86 $11,467 $11,562 $11,932 12/31/87 $11,726 $11,827 $12,111 12/31/88 $12,479 $12,723 $13,341 12/31/89 $13,366 $14,535 $14,779 12/31/90 $14,158 $15,739 $15,990 12/31/91 $15,646 $18,276 $17,784 12/31/92 $16,884 $19,662 $19,351 12/31/93 $18,554 $21,831 $21,729 12/31/94 $17,799 $21,065 $20,606 12/31/95 $19,871 $25,119 $24,202
WRIGHT MANAGED INCOME TRUST - BOND FUNDS WRIGHT CURRENT INCOME FUND Growth of $10,000 invested 4/30/87* through 12/31/95 Annual Total Return --------------------------------------------- Lst 1 Yr Lst 5 Yrs Since Incept* Wright Current Income Fund +17.5% +8.3% +9.0% Lehman Gov't/Corp Index +19.2% +9.8% +9.5% Lehman Mtg-Backed index +16.8% +8.7% +9.6% The cumulative total return of a U.S. $10,000 investment in the WRIGHT CURRENT INCOME BOND FUND on 4/30/87 would have grown to $21,162 by December 31, 1995.
The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Current Lehman Gov't/Corp Lehman Mtg-Backed Income Fund Index Index ----------------------------------------------------------------------- 04/30/87 $10,000 $10,000 $10,000 12/31/87 $10,416 $10,356 $10,500 12/31/88 $11,323 $11,141 $11,416 12/31/89 $12,925 $12,728 $13,169 12/31/90 $14,198 $13,782 $14,581 12/31/91 $16,372 $16,004 $16,873 12/31/92 $17,475 $17,217 $18,048 12/31/93 $18,626 $19,117 $19,283 12/31/94 $18,016 $18,446 $18,972 12/31/95 $21,162 $21,996 $22,160 NOTES: *: For comparison with other averages, the investment results are shown from the first month-end since the Fund's inception. The investment results of Wright Fixed Income Funds, Lipper's average of 1520 Fixed Income Funds and Morningstar's average of 111 Government General Funds with average maturities of 1 to 5 years are net of all fees and expenses charged to the Funds. No fees or expenses have been deducted from the Lehman Bond Indices. The Total Investment Return is the % return of an initial $10,000 investment made at the beginning of the period to the ending redeemable value assuming all dividends and distributions are reinvested. Past performance is not predictive of future performance.
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum. Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt Ending Share $ P/S in Shares Owned Value Return Return Return Return (Annualized) (Annualized)(Annualized) - ---------------------------------------------------------------------------------------------------------------------------- THE INCOME TRUST -- WRIGHT U.S. TREASURY FUND (WUSTB) - ------------------------------------------------------ 7/25/83 $10.00 100.000 $1,000.00 12/94 12.25 246.633 3,021.26 -8.66% 7.22% 10.05% 10.15% 1/95 12.47 $0.078287 0.006278 248.277 3,096.01 -8.47% 8.45% 10.01% 10.31% 2/95 12.75 0.068402 0.005335 249.601 3,182.41 -1.72% 9.16% 10.67% 10.50% 3/95 12.75 0.076666 0.006013 251.102 3,201.55 3.28% 9.35% 10.51% 10.47% 4/95 12.89 0.072035 0.005588 252.505 3,254.79 6.83% 10.22% 10.44% 10.55% 5/95 13.77 0.074356 0.005400 253.869 3,495.77 15.41% 10.86% 10.51% 11.14% 6/95 13.85 0.072657 0.005246 255.200 3,534.53 17.86% 10.63% 10.52% 11.16% 7/95 13.56 0.074606 0.005502 256.605 3,479.56 12.50% 10.08% 10.48% 10.93% 8/95 13.75 0.074154 0.005393 257.988 3,547.34 15.54% 11.43% 10.42% 11.03% 9/95 13.91 0.071874 0.005167 259.321 3,607.16 21.17% 11.52% 10.59% 11.10% 10/95 14.20 0.073676 0.005188 260.667 3,701.47 25.00% 11.62% 10.57% 11.26% 11/95 14.44 0.073766 0.005108 261.999 3,783.26 27.20% 11.24% 10.44% 11.38% 12/95 14.71 0.067219 0.004566 263.195 3,871.60 28.18% 11.31% 10.21% 11.51% --------- Total $0.877698
THE INCOME TRUST -- WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB) - --------------------------------------------------------------- 7/25/83 $10.00 100.000 $1,000.00 12/94 9.92 249.659 2,476.61 -3.10% 6.35% 7.88% 8.25% 1/95 10.00 $0.051672 0.005167 250.975 2,509.75 -2.82% 6.80% 7.87% 8.31% 2/95 10.11 0.048232 0.004771 252.172 2,549.46 0.50% 7.08% 8.14% 8.40% 3/95 10.11 0.051589 0.005103 253.459 2,562.47 2.93% 7.18% 8.06% 8.39% 4/95 10.16 0.051314 0.005051 254.739 2,588.15 4.89% 7.45% 8.08% 8.42% 5/95 10.36 0.052921 0.005108 256.041 2,652.58 7.61% 7.54% 8.03% 8.58% 6/95 10.37 0.052615 0.005074 257.340 2,668.61 8.17% 7.43% 8.00% 8.57% 7/95 10.32 0.053425 0.005177 258.672 2,669.49 6.95% 7.15% 8.03% 8.51% 8/95 10.34 0.052851 0.005111 259.994 2,688.34 7.52% 7.38% 7.93% 8.52% 9/95 10.34 0.052174 0.005046 261.306 2,701.90 8.72% 7.32% 7.96% 8.50% 10/95 10.38 0.053507 0.005155 262.653 2,726.34 9.62% 7.27% 7.88% 8.52% 11/95 10.43 0.051860 0.004972 263.959 2,753.09 11.39% 7.17% 7.76% 8.55% 12/95 10.45 0.053142 0.005085 265.301 2,772.40 11.93% 7.07% 7.56% 8.55% --------- Total $0.625302
THE INCOME TRUST -- WRIGHT TOTAL RETURN BOND FUND (WTRB) - --------------------------------------------------------- 7/25/83 $10.00 100.000 $1,000.00 12/94 11.43 249.141 2,847.68 -6.57% 6.19% 9.33% 9.58% 1/95 11.59 0.062608 0.005402 250.518 2,903.50 -6.13% 7.19% 9.18% 9.69% 2/95 11.83 0.061940 0.005236 251.829 2,979.14 -0.74% 7.78% 9.86% 9.87% 3/95 11.86 0.064429 0.005432 253.197 3,002.92 3.45% 8.01% 9.73% 9.87% 4/95 11.97 0.062814 0.005248 254.526 3,046.68 6.35% 8.74% 9.62% 9.93% 5/95 12.54 0.062217 0.004961 255.789 3,207.59 12.22% 9.03% 9.42% 10.34% 6/95 12.58 0.062061 0.004933 257.051 3,233.70 13.60% 8.78% 9.39% 10.34% 7/95 12.41 0.062429 0.005031 258.344 3,206.05 10.56% 8.36% 9.46% 10.18% 8/95 12.52 0.063063 0.005037 259.645 3,250.76 11.99% 9.34% 9.32% 10.23% 9/95 12.60 0.062361 0.004949 260.930 3,287.72 15.10% 9.44% 9.44% 10.26% 10/95 12.75 0.062736 0.004920 262.214 3,343.23 17.44% 9.48% 9.31% 10.34% 11/95 12.95 0.062342 0.004814 263.477 3,412.02 20.36% 9.35% 9.16% 10.45% 12/95 13.12 0.064282 0.004900 264.767 3,473.75 21.97% 9.36% 8.88% 10.53% --------- Total $0.753282
THE INCOME TRUST -- WRIGHT INSURED TAX-FREE BOND FUND (WTFB) - ------------------------------------------------------------- 4/9/85 $10.00 100.000 $1,000.00 12/94 11.02 170.912 1,883.45 -4.08% 5.89% -- 6.72% 1/95 11.11 $0.045820 0.004124 171.635 1,906.86 -3.95% 6.42% -- 6.80% 2/95 11.31 0.046146 0.004080 172.335 1,949.11 0.25% 6.63% -- 6.98% 3/95 11.37 0.044421 0.003907 173.008 1,967.10 4.36% 6.88% -- 7.02% 4/95 11.36 0.043871 0.003862 173.676 1,972.96 4.70% 7.11% -- 6.99% 5/95 11.55 0.044598 0.003861 174.347 2,013.71 6.42% 7.08% 7.09% 7.15% 6/95 11.49 0.043654 0.003799 175.009 2,010.86 6.46% 6.84% 7.08% 7.07% 7/95 11.56 0.044448 0.003845 175.682 2,030.89 5.79% 6.75% 7.20% 7.11% 8/95 11.63 0.043816 0.003767 176.344 2,050.88 6.60% 7.51% 7.35% 7.16% 9/95 11.63 0.044969 0.003867 177.026 2,058.81 8.07% 7.56% 7.62% 7.14% 10/95 11.70 0.043682 0.003734 177.687 2,078.94 10.12% 7.46% 7.46% 7.18% 11/95 11.76 0.043086 0.003664 178.338 2,097.26 12.83% 7.08% 7.26% 7.21% 12/95 11.75 0.042000 0.003575 178.976 2,102.96 11.64% 7.01% 7.11% 7.18% --------- Total $0.530511
THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF) - ------------------------------------------------------ 4/14/87 $10.00 100.000 $1,000.00 12/94 9.71 185.309 1,799.35 -3.30% 6.86% -- 7.91% 1/95 9.87 $0.059081 0.005986 186.466 1,840.42 -1.97% 7.54% -- 8.13% 2/95 10.08 0.059476 0.005900 187.566 1,890.67 1.68% 8.01% -- 8.42% 3/95 10.06 0.058751 0.005840 188.662 1,897.94 5.38% 8.06% -- 8.38% 4/95 10.15 0.058044 0.005719 189.741 1,925.87 7.82% 8.64% -- 8.49% 5/95 10.45 0.056515 0.005408 190.767 1,993.51 11.54% 8.70% -- 8.86% 6/95 10.45 0.056713 0.005427 191.802 2,004.33 12.75% 8.46% -- 8.84% 7/95 10.39 0.057078 0.005494 192.856 2,003.77 10.29% 8.13% -- 8.74% 8/95 10.45 0.057155 0.005469 193.910 2,026.36 11.45% 8.57% -- 8.79% 9/95 10.49 0.057370 0.005469 194.971 2,045.25 14.44% 8.61% -- 8.82% 10/95 10.51 0.057266 0.005449 196.033 2,060.31 15.77% 8.57% -- 8.82% 11/95 10.59 0.056816 0.005365 197.085 2,087.13 17.52% 8.37% -- 8.90% 12/95 10.67 0.056552 0.005300 198.130 2,114.04 17.46% 8.31% -- 8.97% --------- Total $0.690817
WRIGHT U.S. TREASURY FUND (WUSTB) PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 =================================================================================================================================== Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity(1) - ---------------------------------------------------------------------------------------------------------------------------------- $ 1,500,000 U. S. Treasury Notes 8.500% 02/15/20 $130.656 $ 1,959,840 6.51% 6.06% 600,000 U. S. Treasury Bonds 11.625% 11/15/04 141.531 849,186 8.21% 5.61% 1,000,000 U. S. Treasury Bonds 10.000% 05/15/10 130.406 1,304,060 7.67% 6.66% 1,300,000 U. S. Treasury Bonds 14.000% 11/15/11 165.859 2,156,167 8.44% 7.04% 1,000,000 U. S. Treasury Bonds 11.250% 02/15/15 160.078 1,600,780 7.03% 5.95% 2,000,000 U. S. Treasury Bonds 7.250% 05/15/16 114.187 2,283,740 6.35% 6.04% 1,400,000 U. S. Treasury Bonds 7.500% 11/15/16 117.250 1,641,500 6.40% 6.03% 1,500,000 U. S. Treasury Bonds 8.125% 08/15/19 125.734 1,886,010 6.46% 6.06% 550,000 U. S. Treasury Bonds 7.875% 02/15/21 123.141 677,276 6.40% 6.08% 500,000 U. S. Treasury Bonds 6.500% 08/15/05 106.531 532,655 6.10% 5.61% ----------- Total Investments (identified cost, $12,564,565) -- 98.3% $14,891,214 6.84% 6.13% ======= ======= Other Assets, less Liabilities -- 1.7% 265,030 ----------- Net Assets -- 100.0% $15,156,244 ============ Average Maturity -- 18.8 Years(1) (1) Unaudited.
See notes to financial statements WRIGHT U.S. TREASURY FUND =============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 - ------------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $ 12,564,565 Unrealized appreciation................ 2,326,649 ------------ Total value (Note 1A)................ $ 14,891,214 Cash..................................... 50,383 Interest receivable...................... 243,021 Receivable for Fund shares sold.......... 34,098 ------------ Total Assets........................... $ 15,218,716 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 5,166 Payable to dividend disbursing agent..... 36,101 Investment Adviser fee payable........... 15,256 Trustees' fees payable................... 250 Custodian fee payable.................... 2,500 Accrued expenses and other liabilities... 3,199 ------------ Total Liabilities...................... $ 62,472 ------------ NET ASSETS.................................. $ 15,156,244 ============ NET ASSETS CONSIST OF: Proceeds from sales of shares (including shares issued to shareholders in payment of distributions declared), less cost of shares redeemed.. $ 13,256,456 Accumulated net realized loss on investments (computed on the basis of identified cost) (434,300) Unrealized appreciation of investments (computed on the basis of identified cost)......... 2,326,649 Undistributed net investment income......... 7,439 Net assets applicable to outstanding shares $ 15,156,244 ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING.............................. 1,030,135 ============ NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $14.71 ============
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------- INVESTMENT INCOME: Interest Income (Note 1B)................ $ 1,219,456 ------------ Expenses -- Investment Adviser fee (Note 3)........ $ 65,539 Administrator fee (Note 3)............. 16,384 Compensation of trustees not affiliated with the Investment Adviser or Administrator 1,603 Distribution expenses (Note 4)......... 32,770 Custodian fee (Note 3)................. 34,697 Audit services......................... 23,583 Transfer and dividend disbursing agent fees 6,018 Shareholder communication expense...... 1,822 Registration costs..................... 15,140 Printing............................... 1,904 Legal services......................... 980 Miscellaneous.......................... 2,061 ------------ Total expenses....................... $ 202,501 ------------ Deduct -- Reduction of distribution expenses by Principal Underwriter (Note 4)... $ 32,770 Reduction of Investment Adviser fee (Note 3)............................ 17,515 Reduction of custodian fee (Note 3).. 4,754 ------------ Total deductions..................... $ 55,039 ------------ Net expenses......................... $ 147,462 ------------ Net investment income.............. $ 1,071,994 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 529,670 Change in unrealized appreciation of investments......................... 2,464,279 ------------ Net realized and unrealized gain on investments..................... $ 2,993,949 ------------ Net increase in net assets from operations.................... $ 4,065,943 ============
See notes to financial statements WRIGHT U.S. TREASURY FUND =============================================================================== Year Ended December 31, ------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1995 1994 - --------------------------------------------------------------------------------------------------------------------------- INREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income.................................................. $ 1,071,994 $ 1,439,454 Net realized gain on investment transactions......................................................... 529,670 358,064 Change in unrealized appreciation of investments....................................................... 2,464,279 (3,989,643) ------------ ------------ Increase (decrease) in net assets from operations................. $ 4,065,943 $ (2,192,125) Distributions to shareholders from net investment income................... (1,072,005) (1,439,554) Net decrease from Fund share transactions (Note 5) .............................................................. (4,496,109) (9,556,034) ------------ ------------ Net decrease in net assets........................................ $ (1,502,171) $ (13,187,713) NET ASSETS: At beginning of year....................................................... 16,658,415 29,846,128 ------------ ------------ At end of year............................................................. $ 15,156,244 $ 16,658,415 ============= ============= UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS............................................................. $ 7,439 $ 7,444 ============= =============
See notes to financial statements WRIGHT U.S. TREASURY FUND =============================================================================================================================== Year Ended December 31, ----------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 - ------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 12.250 $ 14.360 $ 13.190 $ 13.220 $ 12.100 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income(1)................. $ 0.880 $ 0.880 $ 0.892 $ 0.911 $ 0.902 Net realized and unrealized gain (loss) on investments......................... 2.458 (2.110) 1.170 (0.030) 1.120 -------- -------- -------- -------- -------- Total income (loss) from investment operations........... $ 3.338 $ (1.230) $ 2.062 $ 0.881 $ 2.022 -------- -------- -------- -------- -------- Less Distributions: From net investment income............... $ (0.878) $ (0.880) $ (0.892) $ (0.911) $ (0.902) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 14.710 $ 12.250 $ 14.360 $ 13.190 $ 13.220 ========= ========= ========= ========= ========= Total Return(2)............................. 28.18% (8.66%) 15.90% 7.07% 17.56% Ratios/Supplemental Data: Net assets, end of period (000 omitted).. $ 15,156 $ 16,658 $ 29,846 $ 29,703 $ 33,857 Ratio of net expenses to average net assets 0.9% 0.9% 0.9% 0.9% 0.9% Ratio of net investment income to average net assets............................. 6.6% 6.9% 6.3% 7.1% 7.4% Portfolio Turnover Rate.................. 8% 1% 12% 15% 15% (1)During each of the four years ended December 31, 1995, the operating expenses of the Fund were reduced by an allocation of expenses to the Investment Adviser or a reduction in distribution fee, or a combination thereof. Had such action not been undertaken, the net investment income per share and the ratios would have been as follows: Year Ended December 31, -------------------------------------------- 1995 1994 1993 1992 - -------------------------------------------------------------------------------------------------------------- Net investment income per share............. $ 0.827 $ 0.854 $ 0.878 $ 0.898 ========= ========= ========= ========= Ratios (As a percentage of average net assets): Expenses .............................. 1.2% 1.1% 1.0% 1.0% ========= ========= ========= ========= Net investment income.................... 6.2% 6.7% 6.2% 7.0% ========= ========= ========= ========= (2)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the record date.
See notes to financial statements WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB) PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 =================================================================================================================================== Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity(1) - ----------------------------------------------------------------------------------------------------------------------------------- $ 7,000,000 U. S. Treasury Note 5.125% 03/31/98 $ 99.828 $ 6,987,960 5.13% 5.20% 2,000,000 U. S. Treasury Note 7.125% 10/15/98 104.812 2,096,240 6.80% 5.24% 3,000,000 U. S. Treasury Note 5.125% 12/31/98 99.656 2,989,680 5.14% 5.25% 3,450,000 U. S. Treasury Note 9.000% 05/15/98 108.281 3,735,695 8.31% 5.24% 2,000,000 U. S. Treasury Note 7.875% 11/15/99 108.719 2,174,380 7.24% 5.35% 2,000,000 U. S. Treasury Note 7.250% 11/15/96 101.656 2,033,120 7.13% 5.83% 2,100,000 U. S. Treasury Note 8.125% 02/15/98 105.750 2,220,750 7.68% 5.23% 2,000,000 U. S. Treasury Note 8.000% 08/15/99 108.656 2,173,120 7.36% 5.33% 1,500,000 U. S. Treasury Note 8.500% 02/15/00 111.437 1,671,555 7.63% 5.37% 3,000,000 U. S. Treasury Note 7.000% 04/15/99 105.062 3,151,860 6.66% 5.29% 2,000,000 U. S. Treasury Note 6.375% 01/15/99 103.109 2,062,180 6.18% 5.26% 3,000,000 U. S. Treasury Note 6.875% 03/31/97 101.969 3,059,070 6.74% 5.19% 5,000,000 U. S. Treasury Note 6.375% 06/30/97 101.656 5,082,800 6.27% 5.19% 7,000,000 U. S. Treasury Note 5.625% 08/31/97 100.641 7,044,870 5.59% 5.20% 6,500,000 U. S. Treasury Note 6.000% 11/30/97 101.469 6,595,485 5.91% 5.20% 1,500,000 U. S. Treasury Note 5.125% 06/30/98 99.797 1,496,955 5.14% 5.21% 2,000,000 U. S. Treasury Note 5.875% 08/15/98 101.578 2,031,560 5.78% 5.23% 20,000,000 U. S. Treasury Note 7.875% 04/15/98 105.594 21,118,800 7.46% 5.23% 12,500,000 U. S. Treasury Note 7.500% 11/15/01 110.141 13,767,625 6.81% 5.44% 2,000,000 U. S. Treasury Note 5.125% 03/31/96 99.969 1,999,380 5.13% 5.22% 12,000,000 U. S. Treasury Note 7.125% 02/29/00 106.453 12,774,360 6.69% 5.37% 5,000,000 Federal Home Loan Banks 8.250% 05/27/96 101.125 5,056,250 8.16% 5.38% 5,000,000 Federal Home Loan Banks 8.250% 06/25/96 101.359 5,067,950 8.14% 5.36% 5,500,000 Federal Home Loan Banks 8.000% 07/25/96 101.453 5,579,915 7.89% 5.36% 14,500,000 Federal Home Loan Banks 8.250% 09/25/96 102.016 14,792,320 8.09% 5.39% 1,150,000 Federal Home Loan Banks 8.600% 06/25/99 109.812 1,262,837 7.83% 5.47% 3,400,000 Federal Home Loan Banks 5.020% 11/16/98 99.115 3,369,910 5.06% 5.35% ----------- ------ ------ Total Investments (identified cost, $136,992,741) -- 98.5% $141,396,627 6.70% 5.31% ======= ======= Other Assets, Less Liabilities -- 1.5% 2,203,207 ----------- Net Assets -- 100.0% $143,599,834 ============ Average Maturity -- 2.4 Years(1) (1) Unaudited.
See notes to financial statements WRIGHT U.S. TREASURY NEAR TERM FUND =============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 - ------------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $136,992,741 Unrealized appreciation................ 4,403,886 ------------ Total value (Note 1A)................ $141,396,627 Cash..................................... 22,110 Receivable for Fund shares sold.......... 400,984 Interest receivable...................... 2,367,652 ------------ Total Assets........................... $144,187,373 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 248,595 Payable to dividend disbursing agent..... 325,844 Trustees' fees payable................... 250 Custodian fee payable.................... 4,500 Accrued expenses and other liabilities... 8,350 ------------ Total Liabilities...................... $ 587,539 ------------ NET ASSETS.................................. $143,599,834 ============ NET ASSETS CONSIST OF: Proceeds from sales of shares (including shares issued to shareholders in payment of distributions declared), less cost of shares redeemed................................. $160,668,525 Accumulated net realized loss on investment transactions (computed on the basis of identified cost)......................... (21,682,260) Unrealized appreciation of investments (computed on the basis of identified cost) 4,403,886 Undistributed net investment income......... 209,683 Net assets applicable to outstanding shares $143,599,834 ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING.............................. 13,738,237 ============ NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $10.45 ============
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------- INVESTMENT INCOME: Interest Income (Note 1B)................ $ 11,961,829 ------------ Expenses -- Investment Adviser fee (Note 3)........ $ 739,265 Administrator fee (Note 3)............. 129,501 Compensation of trustees not affiliated with the Investment Adviser or Administrator 2,170 Distribution expenses (Note 4)......... 347,507 Custodian fee (Note 3)................. 60,902 Transfer and dividend disbursing agent fees 14,130 Shareholder communication expense...... 22,064 Audit services......................... 30,983 Registration costs..................... 15,972 Printing............................... 1,992 Legal services......................... 1,579 Miscellaneous.......................... 7,245 ------------ Total expenses....................... $ 1,373,310 Deduct -- Reduction of custodian fee........... 12,111 ------------ Net expenses......................... $ 1,361,199 ------------ Net investment income.............. $ 10,600,630 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on investment transactions (identified cost basis)................ $ (376,568) Change in unrealized appreciation of investments......................... 10,227,881 ------------ Net realized and unrealized gain on investments..................... $ 9,851,313 ------------ Net increase in net assets from operations.................... $ 20,451,943 ============
See notes to financial statements WRIGHT U.S. TREASURY NEAR TERM FUND =============================================================================== Year Ended December 31, ----------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1995 1994 - ------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income.................................................. $ 10,600,630 $ 16,679,095 Net realized loss on investment transactions......................................................... (376,568) (6,936,070) Change in unrealized appreciation of investments....................................................... 10,227,881 (20,360,712) --------------- --------------- Increase (decrease) in net assets from operations................. $ 20,451,943 $ (10,617,687) Distributions to shareholders from net investment income................... (10,580,700) (16,671,903) Net decrease from Fund share transactions (Note 5)......................... (78,393,631) (141,505,123) ---------------- --------------- Net decrease in net assets........................................ $ (68,522,388) $ (168,794,713) NET ASSETS: At beginning of year....................................................... 212,122,222 380,916,935 --------------- ------------- At end of year............................................................. $ 143,599,834 $ 212,122,222 ============= ============= UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS............................................................. $ 209,683 $ 189,753 ============= =============
See notes to financial statements WRIGHT U.S. TREASURY NEAR TERM FUND ================================================================================================================================== Year Ended December 31, --------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 9.920 $ 10.840 $ 10.660 $ 10.750 $ 10.260 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income.................... $ 0.631 $ 0.588 $ 0.655 $ 0.739 $ 0.795 Net realized and unrealized gain (loss) on investments......................... 0.524 (0.920) 0.180 (0.090) 0.489 -------- -------- -------- -------- -------- Total income (loss) from investment operations........................... $ 1.155 $ (0.332) $ 0.835 $ 0.649 $ 1.284 -------- -------- -------- -------- -------- Less distributions from net investment income $ (0.625) $ (0.588) $ (0.655) $ (0.739) $ 0.794) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 10.450 $ 9.920 $ 10.840 $ 10.660 $ 10.750 ========= ========= ========= ========= ========= Total Return(1)............................. 11.93% (3.10%) 7.95% 6.26% 13.08% Ratios/Supplemental Data: Net assets, end of year (000 omitted).... $143,600 $212,122 $ 380,917 $ 371,074 $232,407 Ratio of expenses to average net assets.. 0.8% 0.7% 0.7% 0.8% 0.8% Ratio of net investment income to average net assets............................. 6.2% 5.7% 6.0% 6.9% 7.7% Portfolio Turnover Rate.................. 21% 33% 22% 6% 18% (1)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the record date.
See notes to financial statements WRIGHT TOTAL RETURN BOND FUND (WTRB) PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 ============================================================================================================================== Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity(1) - ------------------------------------------------------------------------------------------------------------------------------ CORPORATE BONDS -- 38.4% - ------------------------ FINANCIAL -- 3.7% $ 1,500,000 GE Capital Corp 7.670% 05/22/02 $110.214 $ 1,653,210 6.96% 5.73% 2,000,000 GE Capital Corp 7.875% 12/01/06 113.345 2,266,900 6.95% 6.18% 700,000 Rockland Trust Co.(*) 9.500% 10/15/96 93.000 651,000 10.22% 19.39% ---------- $ 4,571,110 INDUSTRIALS -- 14.2% $ 2,850,000 Abbott Labs 5.600% 10/01/03 $ 97.902 $ 2,790,207 5.72% 5.94% 2,000,000 Anheuser Busch 6.900% 10/01/02 105.252 2,105,040 6.56% 5.94% 2,000,000 Archer Daniels Midland Co 6.250% 05/15/03 101.803 2,036,060 6.14% 5.95% 2,500,000 Walt Disney Company 5.800% 10/27/08 97.283 2,432,075 5.96% 6.11% 1,400,000 Kimberly Clark 6.875% 02/15/14 104.190 1,458,660 6.60% 6.48% 1,500,000 Proctor & Gamble Co 8.000% 11/15/03 111.556 1,673,340 7.17% 6.13% 5,000,000 Sara Lee Corp. 5.750% 09/03/03 98.156 4,907,800 5.86% 6.05% ------------ $17,403,182 UTILITIES -- 20.5% $ 4,100,000 AT&T Corp. 7.750% 03/01/07 $112.386 $ 4,607,826 6.90% 6.20% 5,000,000 Bell Atlantic - New Jersey 5.875% 02/01/04 99.365 4,968,250 5.91% 5.97% 5,000,000 Bellsouth Telecommunications 6.375% 06/15/04 102.756 5,137,800 6.20% 5.96% 1,000,000 Citizens Utilities Co 7.450% 01/15/04 108.968 1,089,680 6.84% 6.03% 2,000,000 Consolidated Edison 6.375% 04/01/03 101.145 2,022,900 6.30% 6.18% 2,000,000 Duke Power Co 7.000% 09/01/05 104.182 2,083,640 6.72% 6.41% 3,000,000 Pacific Bell 7.250% 07/01/02 107.027 3,210,810 6.77% 5.94% 2,000,000 Pacific Tel & Tel 6.500% 07/01/03 100.634 2,012,680 6.46% 6.39% ------------- $25,133,586 U.S. GOVERNMENT AGENCIES -- 12.0% - ---------------------------------- $ 3,200,000 Federal Home Loan Banks 8.375% 10/25/99 $109.797 $ 3,513,504 7.63% 5.49% 4,600,000 Federal Home Loan Banks 8.600% 01/25/00 111.172 5,113,912 7.74% 5.50% 1,500,000 Federal Home Loan Banks 6.070% 06/30/03 101.467 1,522,005 5.98% 5.83% 1,700,000 Federal Home Loan Banks 5.600% 09/22/03 98.553 1,675,401 5.68% 5.84% 3,000,000 Federal Home Loan Banks 5.450% 10/29/03 97.582 2,927,460 5.59% 5.84% ------------ $14,752,282 U.S. TREASURIES -- 48.0% $ 17,900,000 U.S. Treasury Bonds 7.500% 11/15/16 $117.250 $20,987,750 6.40% 6.03% 6,500,000 U.S. Treasury Bonds 6.250% 08/15/23 102.891 6,687,915 6.07% 6.03% 3,750,000 U.S. Treasury Bonds 8.250% 05/15/05 109.875 4,120,313 7.51% 6.81% 6,600,000 U.S. Treasury Bonds 6.500% 08/15/05 106.531 7,031,046 6.10% 5.61% 75,000 U.S. Treasury Notes 6.875% 03/31/97 101.969 76,477 6.74% 5.22% 100,000 U.S. Treasury Notes 4.375% 08/15/96 99.469 99,469 4.40% 5.24% 6,800,000 U.S. Treasury Notes 6.500% 05/15/05 106.391 7,234,588 6.11% 5.61% 2,000,000 U.S. Treasury Notes 6.250% 02/15/03 104.328 2,086,560 5.99% 5.50% 500,000 U.S. Treasury Notes 7.750% 12/31/99 108.516 542,580 7.14% 5.36% 1,700,000 U.S. Treasury Notes 7.500% 02/15/05 113.344 1,926,847 6.62% 5.61% 2,500,000 U.S. Treasury Notes 8.500% 02/15/00 111.437 2,785,925 7.63% 5.37% 3,000,000 U.S. Treasury Notes 7.750% 02/15/01 110.422 3,312,660 7.02% 5.40% 2,000,000 U.S. Treasury Notes 5.875% 11/15/05 102.250 2,045,000 5.75% 5.58% ---------- $58,937,130 ----------- Total Investments (identified cost, $113,147,771) -- 98.4% $120,797,290 6.45% 6.04% ======= ======= Other Assets, Less Liabilities -- 1.6% 1,964,312 ---------- Net Assets -- 100.0% $122,761,602 ============ Average Maturity -- 9.1 Years(1) (*) Security priced by management (1) Unaudited.
See notes to financial statements WRIGHT TOTAL RETURN BOND FUND =============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 - ------------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $113,147,771 Unrealized appreciation................ 7,649,519 ------------ Total value (Note 1A)................ $120,797,290 Cash..................................... 33,926 Receivable for Fund shares sold.......... 101,639 Interest receivable...................... 2,084,899 ------------ Total Assets........................... $123,017,754 ------------ LIABILITIES: Payable to dividend disbursing agent..... $ 215,855 Payable for Fund shares reacquired....... 28,047 Trustees' fees payable................... 250 Custodian fee payable.................... 4,500 Accrued expenses and other liabilities... 7,500 ------------ Total Liabilities...................... $ 256,152 ------------ NET ASSETS.................................. $122,761,602 ============ NET ASSETS CONSIST OF: Proceeds from sales of shares (including shares issued to shareholders in payment of distributions declared), less cost of shares redeemed.. $116,505,526 Accumulated net realized loss on investment transactions (computed on the basis of identified cost)......................... (1,472,119) Unrealized appreciation of investments (computed on the basis of identified cost)......... 7,649,519 Undistributed net investment income......... 78,676 ------------ Net assets applicable to outstanding shares $122,761,602 ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING.............................. 9,355,945 ============ NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $13.12 ============
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------- INVESTMENT INCOME: Interest Income (Note 1B)................ $ 8,856,688 ------------ Expenses -- Investment Adviser fee (Note 3)........ $ 525,335 Administrator fee (Note 3)............. 110,899 Compensation of trustees not affiliated with the Investment Adviser or Administrator 1,473 Distribution expenses (Note 4)......... 254,493 Custodian fee (Note 3)................. 57,086 Audit services......................... 31,683 Transfer and dividend disbursing agent fees 12,309 Shareholder communication expense...... 15,708 Registration costs..................... 17,050 Legal services......................... 1,361 Printing............................... 2,010 Interest expense....................... 484 Miscellaneous.......................... 5,934 ------------ Total expenses....................... $ 1,035,825 Deduct -- Reduction of custodian fee........... 9,007 ------------ Net expenses......................... $ 1,026,818 ------------ Net investment income.............. $ 7,829,870 ------------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 411,969 Change in unrealized appreciation of investments......................... 17,483,217 ------------ Net realized and unrealized gain on investments..................... $ 17,895,186 ------------ Net increase in net assets from operations.................... $ 25,725,056 ============
See notes to financial statements WRIGHT TOTAL RETURN BOND FUND =============================================================================== Year Ended December 31, ------------------------------ STATEMENTS OF CHANGES IN NET ASSETS 1995 1994 - ---------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income...................................................... $ 7,829,870 $ 11,761,434 Net realized gain (loss) on investment transactions............................................................. 411,969 (1,884,088) Change in unrealized appreciation of investments........................................................... 17,483,217 (23,935,733) ------------ ------------ Increase (decrease) in net assets from operations..................... $ 25,725,056 $ (14,058,387) Distributions to shareholders from net investment income....................... (7,796,582) (11,757,984) Net decrease from Fund share transactions (Note 5)............................. (38,663,606) (90,200,306) ------------ ------------ Net decrease in net assets............................................ $ (20,735,132) $(116,016,677) NET ASSETS: At beginning of year........................................................... 143,496,734 259,513,411 ------------ ------------ At end of year................................................................. $ 122,761,602 $ 143,496,734 ============= ============= UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS................................................................. $ 78,676 $ 46,213 ============= =============
See notes to financial statements WRIGHT TOTAL RETURN BOND FUND =================================================================================================================================== Year Ended December 31, -------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 11.430 $ 13.010 $ 12.610 $ 12.580 $ 11.700 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income.................... $ 0.758 $ 0.740 $ 0.789 $ 0.830 $ 0.854 Net realized and unrealized gain (loss) on investments............................ 1.685 (1.580) 0.580 0.030 0.880 -------- -------- -------- -------- -------- Total income (loss) from investment operations........... $ 2.443 $ (0.840) $ 1.369 $ 0.860 $ 1.734 -------- -------- -------- -------- -------- Less Distributions: From net investment income............... $ (0.753) $ (0.740) $ (0.789) $ (0.830) $ (0.854) From net realized gain on investments.... -- -- (0.177) -- -- In excess of net realized gain on investments -- -- (0.003) -- -- -------- -------- -------- -------- -------- Total distributions.................... $ (0.753) $ (0.740) $ (0.969) $ (0.830) $ (0.854) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 13.120 $ 11.430 $ 13.010 $ 12.610 $ 12.580 ========= ========= ========= ========= ========= Total Return(1)............................. 21.97% (6.57%) 11.03% 7.13% 15.38% Ratios/Supplemental Data: Net assets, end of year (000 omitted).... $122,762 $143,497 $259,513 $ 217,564 $134,728 Ratio of net expenses to average net assets 0.8% 0.8% 0.8% 0.8% 0.8% Ratio of net investment income to average net assets............................. 6.2% 6.1% 6.0% 6.7% 7.2% Portfolio Turnover Rate.................. 50% 32% 36% 13% 56% (1)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the record date.
See notes to financial statements WRIGHT INSURED TAX-FREE BOND FUND (WTFB) PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 ================================================================================================================================== Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity(*)(1) - --------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS -- 98.8% - ------------------------ EDUCATION -- 13.8% $ 250,000 Berkley Calif Uni Sch Dist 6.150% 08/01/05 $111.657 $ 279,143 5.51% 4.63% M 25,000 Bristol Twp PA Sch Dist 8.700% 01/15/01 120.312 30,077 7.23% 4.19% M 25,000 Calcasieu Parish LA Sch Dist 9.100% 06/01/02 125.150 31,287 7.27% 4.54% M 300,000 Goshen-Chandler Ind Sch Bldg 5.950% 01/15/03 108.668 326,004 5.48% 4.50% M 150,000 Greensburg Salem PA Sch Dist 7.100% 01/01/09 108.137 162,206 6.57% 4.19% F 200,000 Mars Penn Area Sch Dist 6.550% 03/01/02 106.934 213,868 6.13% 4.19% F 150,000 Sumter SC Sch Dist 7.150% 06/01/09 110.209 165,314 6.49% 4.19% F 150,000 Williamsville NY Cent Sch Dist 6.500% 12/01/99 108.459 162,689 5.99% 4.14% M ---------- $ 1,370,588 ---------- GENERAL OBLIGATION -- 45.0% $ 125,000 Bristol County Rhode Island 5.125% 12/01/10 $ 98.967 $ 123,706 5.18% 5.22% M 150,000 Brookhaven NY Ser B 7.000% 05/01/04 116.383 174,575 6.01% 4.61% M 100,000 Central Lake Cnty IL 6.250% 05/01/99 106.478 106,514 5.87% 4.15% M 250,000 Cook County Ill Ser A 5.100% 11/05/05 102.332 255,830 4.98% 4.80% M 250,000 Cumberland Cnty NC 5.700% 02/01/05 108.764 271,910 5.24% 4.37% C 200,000 Fairbanks Northstar, Alaska 5.300% 03/01/04 103.888 207,776 5.10% 4.72% M 300,000 State of Massachusetts 4.125% 10/01/01 99.085 297,255 4.16% 4.30% M 250,000 Michigan Muni Bd Auth 4.950% 05/01/04 101.840 254,600 4.86% 4.68% M 195,000 New York, New York Ser C 6.000% 08/01/01 108.310 211,205 5.54% 4.31% M 250,000 New York, City of NY 7.000% 08/01/04 106.009 265,023 6.60% 3.98% C 125,000 New York City Ser A 7.000% 08/01/99 105.611 132,014 6.63% 4.23% C 200,000 O Fallon Missouri 5.350% 03/01/04 104.580 209,160 5.12% 4.35% C 200,000 Pennsylvania State 6.500% 11/01/04 111.756 223,512 5.82% 4.42% C 250,000 Prince Georges County MD 5.400% 09/01/02 105.602 264,005 5.11% 4.42% M 250,000 Providence Rhode Island 5.600% 01/15/05 105.436 263,590 5.31% 4.85% M 200,000 Smithfield Rhode Island 6.500% 04/15/02 106.677 213,354 6.09% 4.25% C 200,000 Snohomish County Washington 5.750% 12/01/10 103.520 207,040 5.55% 5.25% C 140,000 Summit County Ohio 5.550% 12/01/06 105.457 147,640 5.26% 4.85% P 200,000 Travis County Texas 6.400% 03/01/04 107.907 215,814 5.93% 4.66% C 250,000 West University Place TX 5.600% 02/01/03 105.416 263,540 5.31% 4.57% P 150,000 Wilmington Del 6.150% 07/01/05 108.653 162,980 5.66% 4.49% F ---------- $ 4,471,043 ---------- HEALTH CARE -- 13.2% $ 250,000 Dade Cnty Fla Health Facs Aut 5.000% 05/15/05 $102.325 $ 255,813 4.89% 4.69% M 205,000 Decatur Illinois Hosp 6.400% 10/01/01 109.372 224,213 5.85% 4.53% M 250,000 Fulton De Kalb GA Hosp Auth 5.300% 01/01/05 103.472 258,680 5.12% 4.82% M 100,000 Massachusetts, State Health & Ed 7.300% 10/01/18 110.369 110,369 6.61% 4.99% C 200,000 Massachusetts, State Health & Edl Facs 4.500% 07/01/02 100.279 200,557 4.49% 4.45% M 250,000 Tallahassee Fla Health Fac 5.400% 12/01/01 104.682 261,705 5.16% 4.49% M ---------- $ 1,311,337 ---------- PUBLIC FACILITIES -- 4.1% $ 175,000 Kane Cnty Ill Pub Bldg Comm 6.700% 12/01/03 $107.676 $ 188,433 6.22% 4.54% C 200,000 Louisiana Public Facs Auth 6.100% 05/15/02 108.261 216,522 5.63% 4.59% M ---------- $ 404,955 ---------- UTILITIES -- 10.6% $ 250,000 East Bay CA Mun Util Syst Wtr 5.000% 06/01/05 $102.488 $ 256,220 4.88% 4.67% M 100,000 North Carolina Mun Pwr Agy 5.000% 01/01/04 102.990 102,990 4.85% 4.55% M 250,000 Ohio State Wtr Dev 5.600% 12/01/02 107.090 267,725 5.23% 4.40% M 200,000 Oklahoma St Mun Pwr Auth 5.300% 01/01/01 104.460 208,920 5.07% 4.30% M 150,000 Pasadena Tex Wtr & Swr 5.900% 10/01/00 107.385 161,077 5.49% 4.17% M 50,000 Pecan Grove TX Muni Utl Dist 8.700% 09/01/02 114.679 57,340 7.59% 4.33% C ---------- $ 1,054,272 ---------- MISCELLANEOUS -- 12.1% $ 70,000 Arizona St Transn Brd Excise Rev 7.000% 07/01/05 $110.802 $ 77,561 6.32% 4.19% F 80,000 Arizona St Transn Brd Excise Rev 7.000% 07/01/05 110.802 88,642 6.32% 4.19% F 250,000 Broomfield Co Sales & Use Tax 7.050% 12/01/06 110.241 275,603 6.40% 4.19% F 150,000 Dearborn MI Econ Dev Corp 6.350% 08/15/02 111.239 166,859 5.71% 4.39% F 150,000 NJ Wastewtr Treatment Ln Rev Ser A 7.000% 05/15/07 108.710 163,065 6.44% 4.73% C 175,000 Pennsylvania Intergovernment 5.250% 06/15/08 100.672 176,176 5.21% 5.18% C 250,000 Tucson Ariz Str & Hwy User 5.200% 07/01/04 103.827 259,567 5.01% 4.65% M ---------- $ 1,207,473 ---------- Total Investments (identified cost, $9,241,816) -- 98.8% $ 9,819,668 5.71% 4.56% ======= ======= Other Assets, Less Liabilities -- 1.2% 115,027 ---------- Net Assets -- 100.0% $ 9,934,695 ============ Average Maturity -- 8.4 Years(1) (*) -- (C): Price to Call; (F): Prerefunded; (M): Price to Maturity; (P): Price to Par Call; (X): Called. (1) Unaudited.
See notes to financial statements WRIGHT INSURED TAX-FREE BOND FUND =============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 - ------------------------------------------------------------------------------ ASSETS: Investments -- Identified cost........................ $ 9,241,816 Unrealized appreciation................ 577,852 ------------ Total value (Note 1A)................ $ 9,819,668 Cash..................................... 8,620 Interest receivable...................... 152,100 Receivable from Investment Adviser....... 927 Receivable for Fund shares sold.......... 216 ------------ Total Assets........................... $ 9,981,531 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 3,271 Loans payable (Note 8)................... 20,000 Payable to dividend disbursing agent..... 17,170 Trustees' fees payable................... 250 Custodian fee payable.................... 3,000 Interest on loans........................ 169 Accrued expenses and other liabilities... 2,976 ------------ Total Liabilities...................... $ 46,836 ------------ NET ASSETS.................................. $ 9,934,695 ============ NET ASSETS CONSIST OF: Proceeds from sales of shares (including shares issued to shareholders in payment of distributions declared), less cost of shares redeemed.. $ 9,347,135 Unrealized appreciation of investments (computed on the basis of identified cost)......... 577,852 Undistributed net investment income......... 9,708 ------------ Net assets applicable to outstanding shares $ 9,934,695 ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING.............................. 845,234 ============ NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $11.75 ============
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------- INVESTMENT INCOME: Interest Income (Note 1B)................ $ 587,234 ------------ Expenses -- Investment Adviser fee (Note 3)........ $ 42,577 Administrator fee (Note 3)............. 10,644 Compensation of trustees not affiliated with the Investment Adviser or Administrator 1,548 Distribution expenses (Note 4)......... 21,289 Custodian fee (Note 3)................. 41,713 Audit services......................... 20,783 Interest expense....................... 3,352 Transfer and dividend disbursing agent fees 5,693 Shareholder communication expense...... 1,065 Registration costs..................... 12,911 Printing............................... 2,370 Legal fees............................. 953 Miscellaneous.......................... 2,367 ------------ Total expenses....................... $ 167,265 ------------ Deduct -- Reduction of Investment Adviser fee (Note 3)....................... $ 42,577 Reduction of distribution expenses by Principal Underwriter (Note 4).. 21,289 Reduction of custodian fee (Note 3).. 6,645 Allocation of expenses to Investment Adviser (Note 3)................... 927 ------------ Total deducted..................... $ 71,438 ------------ Net expenses......................... $ 95,827 ------------ Net investment income.............. $ 491,407 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 1,397 Change in unrealized appreciation of investments......................... 686,692 ------------ Net realized and unrealized gain on investments..................... $ 688,089 ------------ Net increase in net assets from operations.................... $ 1,179,496 ============
See notes to financial statements WRIGHT INSURED TAX-FREE BOND FUND =============================================================================== Year Ended December 31, ------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1995 1994 - --------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income.................................................. $ 491,407 $ 697,607 Net realized gain on investment transactions...................................................... 1,397 103,903 Change in unrealized appreciation of investments.................................................... 686,692 (1,505,273) ------------ ------------ Increase (decrease) in net assets from operations................. $ 1,179,496 $ (703,763) ------------ ------------ Distributions to shareholders -- From net investment income............................................. $ (491,406) $ (697,473) From net realized gains on investment transactions..................... -- (103,201) ------------ ------------ Total distributions............................................... $ (491,406) $ (800,674) ------------ ------------ Net decrease from Fund share transactions (Note 5)......................... $ (1,400,272) $ (6,053,899) ------------ ------------ Net decrease in net assets........................................ $ (712,182) $ (7,558,336) NET ASSETS: At beginning of year....................................................... 10,646,877 18,205,213 ------------ ------------ At end of year............................................................. $ 9,934,695 $ 10,646,877 ============= ============= UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS............................................................. $ 9,708 $ 7,513 ============= =============
See notes to financial statements WRIGHT INSURED TAX-FREE BOND FUND ================================================================================================================================== Year Ended December 31, -------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 11.020 $ 12.170 $ 11.600 $ 11.330 $ 10.840 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income(1)................. $ 0.531 $ 0.560 $ 0.556 $ 0.601 $ 0.614 Net realized and unrealized gain (loss) on investments............................ 0.729 (1.050) 0.570 0.270 0.492 -------- -------- -------- -------- -------- Total income (loss) from investment operations........... $ 1.260 $ (0.490) $ 1.126 $ 0.871 $ 1.106 -------- -------- -------- -------- -------- Less Distributions: From net investment income............... $ (0.530) $ (0.560) $ (0.556) $ (0.601) $ (0.616) From net realized gains.................. -- (0.100) -- -- -- -------- -------- -------- -------- -------- Total distributions.................... $ (0.530) $ (0.660) $ (0.556) $ (0.601) $ (0.616) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 11.750 $ 11.020 $ 12.170 $ 11.600 $ 11.330 ========= ========= ========= ========= ========= Total Return(3)............................. 11.64% (4.08%) 9.89% 7.91% 10.50% Ratios/Supplemental Data: Net assets, end of year (000 omitted).... $ 9,935 $10,647 $ 18,205 $ 13,454 $ 8,396 Ratio of net expenses to average net assets 1.0%(2) 0.9% 0.9% 0.9% 0.9% Ratio of net investment income to average net assets............................. 4.6% 4.8% 4.7% 5.3% 5.6% Portfolio Turnover Rate.................. 8% 4% 7% 10% 2% (1)During each of the years in the five-year period ended December 31, 1995, the operating expenses of the Fund were reduced either by a reduction of the Investment Adviser fee, Administrator fee, or distribution fee or through the allocation of expenses to the Investment Adviser, or a combination thereof. Had such actions not been undertaken, the net investment income per share and the ratios would have been as follows: Year Ended December 31, -------------------------------------------------------------- 1995 1994 1993 1992 1991 - ---------------------------------------------------------------------------------------------------------------------------- Net investment income per share............. $ 0.462 $0.513 $0.521 $0.556 $0.537 ========= ========= ========= ========= ========= Ratios (As a percentage of average net assets): Expenses .............................. 1.6% 1.3% 1.1% 1.3% 1.6% ========= ========= ========= ========= ========= Net investment income.................... 4.0% 4.4% 4.4% 4.9% 4.9% ========= ========= ========= ========= ========= (2)During the year ended December 31, 1995, custodian fees were reduced by credits resulting from cash balances that the Trust maintained with the custodian (Note 3). The computation of net expenses to average net assets reported above is computed without consideration of such credits, in accordance with reporting regulations in effect beginning in 1995. If these credits were considered, the ratio of net expenses to average net assets would have been reduced to 0.9%. (3)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the record date.
See notes to financial statements WRIGHT CURRENT INCOME FUND (WCIF) PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 ================================================================================================================================== Face Coupon Maturity Market Current Amount Description Rate Date Price Value Yield(1) - ---------------------------------------------------------------------------------------------------------------------------------- GOVERNMENT INTERESTS - 97.8% - ---------------------------- $ 1,596,305 GNMA POOL # 000169 7.500% 09/20/22 $102.312 $1,633,212 7.33% 783,575 GNMA POOL # 000394 7.500% 10/20/22 102.312 801,766 7.33% 6,162 GNMA POOL # 000434 8.000% 04/15/01 104.029 6,410 7.69% 866,076 GNMA POOL # 000446 7.500% 11/20/22 102.312 886,100 7.33% 1,655 GNMA POOL # 000473 7.500% 04/15/01 102.974 1,704 7.28% 1,536,632 GNMA POOL # 000545 7.500% 12/20/22 102.312 1,572,159 7.33% 2,440,936 GNMA POOL # 000723 7.500% 01/20/23 102.312 2,497,370 7.33% 2,441,634 GNMA POOL # 001268 8.000% 07/20/23 103.562 2,528,605 7.72% 3,902 GNMA POOL # 001408 6.500% 03/15/02 101.767 3,971 6.39% 176,941 GNMA POOL # 001596 9.000% 04/20/21 105.187 186,119 8.56% 4,638 GNMA POOL # 003026 8.000% 01/15/04 104.784 4,860 7.63% 2,019 GNMA POOL # 003331 8.000% 01/15/04 104.784 2,116 7.63% 5,273 GNMA POOL # 004183 8.000% 07/15/04 105.038 5,539 7.62% 3,107 GNMA POOL # 004433 9.000% 11/15/04 106.051 3,295 8.49% 8,478 GNMA POOL # 005466 8.500% 03/15/05 105.200 8,919 8.08% 1,137 GNMA POOL # 005561 8.500% 04/15/05 104.906 1,193 8.10% 4,022 GNMA POOL # 005687 7.250% 02/15/05 104.562 4,205 6.93% 5,360 GNMA POOL # 005910 7.250% 02/15/05 104.562 5,605 6.93% 21,598 GNMA POOL # 007003 8.000% 07/15/05 105.225 22,726 7.60% 3,324 GNMA POOL # 007319 6.500% 10/15/04 101.925 3,388 6.38% 8,196 GNMA POOL # 009106 8.250% 05/15/06 105.604 8,655 7.81% 10,361 GNMA POOL # 009889 7.250% 02/15/06 104.562 10,834 6.93% 3,151 GNMA POOL # 011191 7.250% 04/15/06 104.562 3,295 6.93% 7,072 GNMA POOL # 012526 8.000% 11/15/06 105.354 7,451 7.59% 117,175 GNMA POOL # 151443 10.000% 03/15/16 110.488 129,464 9.05% 258,248 GNMA POOL # 151882 8.500% 09/15/19 105.775 273,162 8.04% 51,428 GNMA POOL # 153564 10.000% 04/15/16 110.523 56,840 9.05% 192,738 GNMA POOL # 172558 9.500% 08/15/16 108.218 208,577 8.78% 201,243 GNMA POOL # 176992 8.000% 11/15/16 105.234 211,776 7.60% 64,194 GNMA POOL # 177784 8.000% 10/15/16 105.108 67,473 7.61% 92,708 GNMA POOL # 180033 9.500% 09/15/16 108.218 100,327 8.78% 25,336 GNMA POOL # 188060 9.500% 10/15/16 108.135 27,397 8.79% 8,536 GNMA POOL # 190959 8.500% 02/15/17 105.983 9,047 8.02% 206,151 GNMA POOL # 192357 8.000% 04/15/17 105.108 216,681 7.61% $ 621,359 GNMA POOL # 194057 8.500% 04/15/17 $105.924 $ 658,168 8.02% 125,550 GNMA POOL # 194287 9.500% 03/15/17 108.302 135,973 8.77% 979,931 GNMA POOL # 194926 8.500% 02/15/17 105.983 1,038,560 8.02% 19,719 GNMA POOL # 196063 8.500% 03/15/17 105.983 20,899 8.02% 213,072 GNMA POOL # 199537 8.000% 03/15/17 105.108 223,956 7.61% 386,029 GNMA POOL # 203369 8.000% 12/15/16 105.108 405,747 7.61% 16,165 GNMA POOL # 206740 10.000% 10/15/17 110.593 17,877 9.04% 157,667 GNMA POOL # 206762 9.000% 04/15/21 106.375 167,718 8.46% 110,262 GNMA POOL # 207019 8.000% 03/15/17 105.108 115,894 7.61% 35,096 GNMA POOL # 208076 8.000% 04/15/17 105.344 36,972 7.59% 64,502 GNMA POOL # 210520 10.500% 08/15/17 111.864 72,155 9.39% 39,360 GNMA POOL # 210618 9.500% 04/15/17 108.385 42,660 8.77% 205,892 GNMA POOL # 211013 9.000% 01/15/20 106.531 219,339 8.45% 212,710 GNMA POOL # 211231 8.500% 05/15/17 105.983 225,436 8.02% 362,573 GNMA POOL # 211279 8.000% 04/15/17 105.108 381,093 7.61% 122,918 GNMA POOL # 212601 8.500% 06/15/17 105.983 130,272 8.02% 51,602 GNMA POOL # 218420 8.500% 11/15/21 105.000 54,182 8.10% 295,630 GNMA POOL # 219335 8.000% 05/15/17 105.108 310,731 7.61% 291,472 GNMA POOL # 220703 8.000% 05/15/17 105.108 306,360 7.61% 30,996 GNMA POOL # 220917 8.500% 04/15/17 105.983 32,850 8.02% 719,738 GNMA POOL # 222112 8.000% 01/15/22 104.264 750,428 7.67% 59,699 GNMA POOL # 223126 10.000% 08/15/17 110.593 66,023 9.04% 144,980 GNMA POOL # 223133 9.500% 07/15/17 108.052 156,654 8.79% 49,911 GNMA POOL # 223348 10.000% 08/15/18 110.593 55,198 9.04% 36,730 GNMA POOL # 223588 10.000% 12/15/18 110.593 40,621 9.04% 30,570 GNMA POOL # 224078 10.000% 07/15/18 110.593 33,808 9.04% 126,091 GNMA POOL # 228308 10.000% 01/15/19 110.628 139,492 9.04% 91,232 GNMA POOL # 228483 9.500% 09/15/19 107.885 98,426 8.81% 72,824 GNMA POOL # 230223 9.500% 04/15/18 108.135 78,748 8.79% 93,958 GNMA POOL # 235000 10.000% 01/15/18 110.593 103,911 9.04% 70,085 GNMA POOL # 245580 9.500% 07/15/18 107.968 75,669 8.80% 67,561 GNMA POOL # 247473 10.000% 09/15/18 110.593 74,718 9.04% 177,088 GNMA POOL # 247681 9.000% 11/15/19 106.609 188,792 8.44% 56,106 GNMA POOL # 247872 10.000% 09/15/18 110.628 62,069 9.04% 35,430 GNMA POOL # 250412 8.000% 03/15/18 104.967 37,190 7.62% 95,974 GNMA POOL # 251241 9.500% 06/15/18 108.052 103,702 8.79% $ 120,864 GNMA POOL # 258911 9.500% 09/15/18 $107.968 $ 130,494 8.80% 75,028 GNMA POOL # 260999 9.500% 09/15/18 107.968 81,006 8.80% 102,354 GNMA POOL # 263439 10.000% 02/15/19 110.628 113,232 9.04% 134,054 GNMA POOL # 265267 9.500% 08/15/20 107.885 144,624 8.81% 60,278 GNMA POOL # 266983 10.000% 02/15/19 110.628 66,684 9.04% 37,694 GNMA POOL # 273690 9.500% 08/15/19 107.885 40,666 8.81% 101,274 GNMA POOL # 274489 9.500% 12/15/19 107.885 109,259 8.81% 38,414 GNMA POOL # 275456 9.500% 08/15/19 107.885 41,443 8.81% 125,456 GNMA POOL # 275538 9.500% 01/15/20 107.968 135,452 8.80% 75,626 GNMA POOL # 277205 9.000% 12/15/19 106.531 80,565 8.45% 88,843 GNMA POOL # 285467 9.500% 07/15/20 107.885 95,848 8.81% 126,835 GNMA POOL # 285744 9.000% 05/15/20 106.609 135,218 8.44% 146,243 GNMA POOL # 286556 9.000% 03/15/20 106.531 155,794 8.45% 4,444 GNMA POOL # 287999 9.000% 09/15/20 106.453 4,731 8.45% 299,797 GNMA POOL # 289092 9.000% 04/15/20 106.531 319,377 8.45% 19,338 GNMA POOL # 289949 8.500% 07/15/21 105.000 20,305 8.10% 33,102 GNMA POOL # 290700 9.000% 08/15/20 106.453 35,238 8.45% 74,881 GNMA POOL # 291933 9.500% 07/15/20 107.802 80,723 8.81% 43,444 GNMA POOL # 293666 8.500% 06/15/21 105.775 45,953 8.04% 4,876 GNMA POOL # 294209 9.000% 07/15/21 106.375 5,187 8.46% 91,090 GNMA POOL # 294577 9.500% 11/15/20 107.802 98,197 8.81% 13,406 GNMA POOL # 297345 8.500% 08/15/20 105.687 14,168 8.04% 41,364 GNMA POOL # 301017 8.500% 06/15/21 105.000 43,432 8.10% 151,767 GNMA POOL # 301366 8.500% 06/15/21 105.687 160,398 8.04% 165,153 GNMA POOL # 302713 9.000% 02/15/21 106.375 175,682 8.46% 18,670 GNMA POOL # 302723 8.500% 05/15/21 105.687 19,732 8.04% 147,135 GNMA POOL # 302781 8.500% 06/15/21 105.687 155,503 8.04% 168,682 GNMA POOL # 302933 8.500% 06/15/21 105.687 178,275 8.04% 145,599 GNMA POOL # 304512 8.500% 05/15/21 105.775 154,007 8.04% 332,997 GNMA POOL # 305091 9.000% 07/15/21 106.375 354,226 8.46% 22,526 GNMA POOL # 306669 8.000% 07/15/21 104.336 23,503 7.67% 233,641 GNMA POOL # 306693 8.500% 09/15/21 105.000 245,323 8.10% 135,563 GNMA POOL # 307553 8.500% 06/15/21 105.000 142,341 8.10% 219,039 GNMA POOL # 308792 9.000% 07/15/21 106.375 233,003 8.46% 130,383 GNMA POOL # 311087 8.500% 07/15/21 105.000 136,902 8.10% 24,014 GNMA POOL # 314222 8.500% 04/15/22 105.000 25,215 8.10% $ 292,885 GNMA POOL # 314581 9.500% 10/15/21 $107.718 $ 315,490 8.82% 509,011 GNMA POOL # 314912 8.500% 05/15/22 105.000 534,462 8.10% 563,600 GNMA POOL # 315187 8.000% 06/15/22 104.264 587,632 7.67% 594,314 GNMA POOL # 315388 8.000% 02/15/22 104.336 620,083 7.67% 576,048 GNMA POOL # 315754 8.000% 01/15/22 104.264 600,611 7.67% 1,206,915 GNMA POOL # 316240 8.000% 01/15/22 104.264 1,258,378 7.67% 458,456 GNMA POOL # 316615 8.500% 11/15/21 105.000 481,379 8.10% 301,201 GNMA POOL # 317069 8.500% 12/15/21 105.000 316,261 8.10% 566,321 GNMA POOL # 317351 8.000% 05/15/22 104.188 590,039 7.68% 576,003 GNMA POOL # 317358 8.000% 05/15/22 104.264 600,564 7.67% 473,678 GNMA POOL # 318776 8.000% 02/15/22 104.264 493,876 7.67% 14,782 GNMA POOL # 318793 8.500% 02/15/22 105.775 15,636 8.04% 483,979 GNMA POOL # 319441 8.500% 04/15/22 105.000 508,178 8.10% 348,532 GNMA POOL # 321806 8.000% 05/15/22 104.264 363,393 7.67% 735,097 GNMA POOL # 321807 8.000% 05/15/22 104.188 765,883 7.68% 468,099 GNMA POOL # 321976 8.500% 01/15/22 105.000 491,504 8.10% 825,055 GNMA POOL # 323226 8.000% 06/15/22 104.188 859,608 7.68% 682,237 GNMA POOL # 323929 8.000% 02/15/22 104.264 711,328 7.67% 596,656 GNMA POOL # 325165 8.000% 06/15/22 104.188 621,644 7.68% 479,463 GNMA POOL # 325651 8.000% 06/15/22 104.264 499,907 7.67% 949,006 GNMA POOL # 329540 7.500% 08/15/22 103.014 977,609 7.28% 1,369,246 GNMA POOL # 329982 7.500% 02/15/23 102.875 1,408,612 7.29% 713,139 GNMA POOL # 331361 8.000% 11/15/22 104.188 743,005 7.68% 1,419,856 GNMA POOL # 335746 8.000% 10/15/22 104.188 1,479,320 7.68% 546,946 GNMA POOL # 335950 8.000% 10/15/22 104.188 569,852 7.68% 2,655,992 GNMA POOL # 348103 7.000% 06/15/23 101.356 2,692,007 6.91% 888,503 GNMA POOL # 348213 6.500% 08/15/23 99.187 881,279 6.55% 1,454,188 GNMA POOL # 350372 7.000% 04/15/23 101.356 1,473,907 6.91% 1,573,407 GNMA POOL # 350659 7.500% 06/15/23 102.875 1,618,642 7.29% 1,876,639 GNMA POOL # 350938 6.500% 08/15/23 99.187 1,861,382 6.55% 916,319 GNMA POOL # 362125 7.000% 10/15/23 101.356 928,744 6.91% 951,399 GNMA POOL # 362174 6.500% 01/15/24 99.290 944,644 6.55% 949,216 GNMA POOL # 362628 7.000% 08/15/23 101.187 960,483 6.92% 993,263 GNMA POOL # 363429 7.000% 08/15/23 101.187 1,005,053 6.92% 927,593 GNMA POOL # 367414 6.000% 11/15/23 97.250 902,084 6.17% 2,861,912 GNMA POOL # 367806 6.500% 09/15/23 99.187 2,838,645 6.55% $ 2,589,097 GNMA POOL # 368238 7.000% 12/15/23 $101.187 $ 2,619,830 6.92% 2,768,838 GNMA POOL # 368502 7.000% 02/15/24 101.187 2,801,704 6.92% 1,984,354 GNMA POOL # 370773 6.000% 11/15/23 97.250 1,929,784 6.17% 2,872,511 GNMA POOL # 372050 6.500% 02/15/24 99.187 2,849,157 6.55% ---------- Total Government Investments (identified cost, $63,949,907) -- 97.8% $64,895,837 RESERVE FUNDS - 1.8% 1,155,000 American Express Corp 5.654% 01/02/96 100.000 1,155,000 5.65% ----------- ------ Total Investments (identified cost $65,104,907) -- 99.6% $66,050,837 7.98% ======= Other Assets, less Liabilities -- 0.4% 294,336 ----------- Net Assets -- 100.0% $66,345,173 ============ (1) Unaudited.
See notes to financial statements WRIGHT CURRENT INCOME FUND =============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 - ------------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $ 65,104,907 Unrealized appreciation................ 945,930 ------------ Total value (Note 1A)................ $ 66,050,837 Cash .................................... 2,559 Receivable for Fund shares sold.......... 95,179 Interest receivable...................... 398,712 Receivable for investments sold.......... 1,206 ------------ Total Assets........................... $ 66,548,493 ------------ LIABILITIES: Payable to dividend disbursing agent..... $ 103,812 Payable for Fund shares reacquired....... 90,648 Trustees' fees payable................... 250 Custodian fee payable.................... 4,400 Accrued expenses and other liabilities... 4,210 ------------ Total Liabilities...................... $ 203,320 ------------ NET ASSETS.................................. $ 66,345,173 ============ NET ASSETS CONSIST OF: Proceeds from sales of shares (including shares issued to shareholders in payment of distributions declared), less cost of shares redeemed.. $ 66,279,731 Accumulated net realized loss on investment transactions (computed on the basis of identified cost)......................... (914,103) Unrealized appreciation of investments (computed on the basis of identified cost)......... 945,930 Undistributed net investment income......... 33,615 ------------ Net assets applicable to outstanding shares $ 66,345,173 ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING.............................. 6,218,728 ============ NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $10.67 ============
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------ INVESTMENT INCOME: Interest Income (Note 1B)................ $ 5,976,371 ------------ Expenses -- Investment Adviser fee (Note 3)........ $ 313,626 Administrator fee (Note 3)............. 78,407 Compensation of trustees not affiliated with the Investment Adviser or Administrator 1,529 Distribution expenses (Note 4)......... 155,373 Custodian fee (Note 3)................. 60,585 Audit services......................... 23,683 Transfer and dividend disbursing agent fees 9,695 Shareholder communication expense...... 6,494 Registration costs..................... 12,848 Interest expense....................... 5,374 Printing............................... 1,450 Legal services......................... 1,187 Miscellaneous.......................... 7,557 ------------ Total expenses....................... $ 677,808 Deduct -- Reduction of custodian fee........... 4,516 ------------ Net expenses......................... $ 673,292 ------------ Net investment income.............. $ 5,303,079 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on investment transactions (identified cost basis)................ $ (215,933) Change in unrealized appreciation of investments......................... 7,735,307 ------------ Net realized and unrealized gain on investments..................... $ 7,519,374 ------------ Net increase in net assets from operations.................... $ 12,822,453 ============
See notes to financial statements WRIGHT CURRENT INCOME FUND =================================================================================================================================== Year Ended December 31, ----------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income.................................................. $ 5,303,079 $ 6,817,890 Net realized loss on investment transactions......................................................... (215,933) (682,417) Change in unrealized appreciation of investments....................................................... 7,735,307 (10,057,612) ------------ ------------ Increase (decrease) in net assets from operations................. $ 12,822,453 $ (3,922,139) ------------ ------------ Distributions to shareholders -- From net investment income............................................. $ (5,270,012) $ (6,817,890) In excess of net investment income..................................... -- (1,238) ------------ ------------ Total distributions............................................... $ (5,270,012) $ (6,819,128) ------------ ------------ Net decrease from Fund share transactions (Note 5)......................... $ (25,384,872) $ (20,238,740) ------------ ------------ Net decrease in net assets........................................ $ (17,832,431) $ (30,980,007) NET ASSETS: At beginning of year....................................................... 84,177,604 115,157,611 ------------ ------------ At end of year............................................................. $ 66,345,173 $ 84,177,604 ============= ============= UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS.................................... $ 33,615 $ (1,238) ============= =============
See notes to financial statements WRIGHT CURRENT INCOME FUND ================================================================================================================================== Year Ended December 31, -------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 9.710 $ 10.750 $ 10.780 $ 10.850 $ 10.160 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income(1)................. $ 0.696 $ 0.690(*) $ 0.728 $ 0.767 $ 0.798 Net realized and unrealized gain (loss) on investments............................ 0.955 (1.040) (0.030) (0.069) 0.690 -------- -------- -------- -------- -------- Total income (loss) from investment operations......... $ 1.651 $ (0.350) $ 0.698 $ 0.698 $ 1.488 -------- -------- -------- -------- -------- Less Distributions: From net investment income............... $ (0.691) $ (0.690) $ (0.728) $ (0.767) $ (0.798) From net realized gain................... -- -- -- (0.001) -- -------- -------- -------- -------- -------- Total distributions.................. $ (0.691) $ (0.690) $ (0.728) $ (0.768) $ (0.798) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 10.670 $ 9.710 $ 10.750 $ 10.780 $ 10.850 ========= ========= ========= ========= ========= Total Return(2)............................. 17.46% (3.30%) 6.59% 6.73% 15.31% Ratios/Supplemental Data: Net assets, end of year (000 omitted).... $ 66,345 $84,178 $ 115,158 $ 99,676 $ 65,700 Ratio of net expenses to average net assets 0.9% 0.8% 0.8% 0.9% 0.9% Ratio of net investment income to average net assets............................. 6.8% 6.9% 6.7% 7.2% 7.6% Portfolio Turnover Rate.................. 26% 10% 4% 13% 5% (1)During the year ended December 31, 1991, the operating expenses of the Fund were reduced by a reduction of the distribution fee. Had such actions not been undertaken, the net investment income per share and the ratios would have been as follows: 1991 Net investment income per share............. $ 0.787 ========= Ratios (As a percentage of average net assets): Expenses .............................. 1.0% ========= Net investment income.................... 7.5% ========= (*) Includes distribution in excess of net investment income of $.00013 per share. (2)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the record date.
See notes to financial statements THE WRIGHT MANAGED INCOME TRUST NOTES TO FINANCIAL STATEMENTS =============================================================================== (1) SIGNIFICANT ACCOUNTING POLICIES The Trust, issuer of Wright U.S. Treasury Fund (WUSTB) series, formerly the Wright Government Obligations Fund series; Wright U.S. Treasury Near Term Fund (WNTB) series, formerly the Wright Near Term Bond Fund series; Wright Total Return Bond Fund (WTRB) series, Wright Insured Tax-Free Bond Fund (WTFB) series, and Wright Current Income Fund (WCIF) series, is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end, management investment company. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A. Investment Valuations -- Investments of the various funds for which market quotations are readily available are valued at current market value as furnished by a pricing service. Investments for which valuations are not readily available will be appraised at their fair value as determined in good faith by or at the direction of the Trustees. Short-term obligations maturing in sixty days or less are valued at amortized cost, which approximates value. B. Income -- Interest income is determined on the basis of interest accrued and discount earned, adjusted for amortization of premium or discount on long-term debt securities when required for federal income tax purposes. C. Federal Taxes -- The Trust's policy is to comply with the provisions of the Internal Revenue Code (the Code) available to regulated investment companies and to distribute to shareholders each year all of its taxable income, including any net realized gain on investments. Accordingly, no provision for federal income or excise tax is necessary. At December 31, 1995, the Trust, for federal income tax purposes, had capital loss carryovers of $434,300 (WUSTB), $21,682,260 (WNTB), $914,103 (WCIF) and $1,472,119 (WTRB) which will reduce taxable income arising from future net realized gain on investments, if any, to the extent permitte by the Code, and thus will reduce the amount of the distribution to shareholders which would otherwise be necessary to relieve the respective Fund of any liability for federal income or excise tax. Pursuant to the Code, such capital loss carryovers will expire as follows: 12/31 WUSTB WNTB WCIF WTRB -------------------------------------------------- 1996 $ -- $2,300,814 $ -- $ -- 1997 -- 1,319,208 -- -- 1998 434,300 3,324,484 -- -- 1999 -- 4,467,443 -- -- 2000 -- 2,957,673 7,132 -- 2001 -- -- 8,619 -- 2002 -- 6,936,070 682,417 1,472,119 2003 -- 376,568 215,933 --
Distributions paid by WTFB from net investment income on tax-exempt municipal securities are not included by shareholders as gross income for federal income tax purposes because WTFB intends to meet certain requirements of the Code applicable to regulated investment companies which will enable WTFB to pay exempt distributions. The portion of interest, if any, earned on private activity bonds issued after August 7, 1986, may be considered a tax preference item to shareholders. D. Use of Estimates -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. E. Other -- Investment transactions are accounted for on the date the investments are purchased or sold. (2) DISTRIBUTIONS Each Fund's policy is to determine net income once daily, as of the close of the New York Stock Exchange and the net income so determined is declared as a dividend to shareholders of record at the time of such determination. Distributions of realized capital gains are made at least annually. Shareholders may reinvest capital gain distributions in additional shares of the same Fund at the net asset value as of the ex-dividend date. Dividends may be reinvested in additional shares of the same Fund at the net asset value as of the payable date. The Trust requires that differences in the recognition or classification of income between the financial statements and tax earnings and profits which result in temporary overdistributions for financial statement purposes, are classified as distributions in excess of net investment income or accumulated net realized gains. ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN Gain (Loss) Undistributed Paid-in on Net Investment Capital Investment Income (Loss) - ----------------------------------------------------------- WUSTB ($6) -- $6 WNTB ($2,038,311) $2,038,311 -- WTRB $825 -- ($825) WTFB ($96) ($2,098) $2,194 WCIF ($1,784) ($2) $1,786 - ----------------------------------------------------------
These reclassifications are due to differences between book and tax accounting. Net investment income, net realized gains (losses) and net assets were not affected by these reclassifications. (3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES The Trust has engaged Wright Investors' Service (Wright) to perform investment management, investment advisory, and other services. For its services, Wright is compensated based upon a percentage of average daily net assets which rate is adjusted as average daily net assets exceed certain levels. For the year ended December 31, 1995, the effective annual rate was 0.40% for WUSTB, WTFB and WCIF, 0.41% for WTRB and 0.43% for WNTB. To enhance the net income of the Funds, Wright reduced its investment adviser fee by $42,577 and $17,515 for the benefit of WTFB and WUSTB, respectively. The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as administrator of the Trust. Under the Administration Agreement, Eaton Vance is responsible for managing the business affairs of the Trust and is compensated based upon a percentage of average daily net assets which rate is reduced as average daily net assets exceed certain levels. For the year ended December 31, 1995, the effective annual rate was 0.10% for WUSTB, WTFB and WCIF, 0.09% for WTRB and 0.07% for WNTB. The custodian fee was paid to Investors Bank & Trust Company (IBT) for its services as custodian of the Trust. Prior to November 10, 1995, IBT was an affiliate of Eaton Vance. Pursuant to the custodian agreement, IBT receives a fee reduced by credits which are determined based on the average daily cash balances the Trust maintains with IBT. All significant credits are reported as a reduction of expenses in the Statement of Operations. Certain of the Trustees and officers of the Trust are directors/trustees and/or officers of the above organizations. Except as to Trustees of the Trust who are not affiliated with Eaton Vance or Wright, Trustees and officers received remuneration for their services to the Trust out of fees paid to Eaton Vance and Wright. (4) DISTRIBUTION EXPENSES The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule 12b-1 of the Investment Company Act of 1940. The Plan provides that each of the Funds will pay Wright Investors' Service Distributors, Inc. (Principal Underwriter), a subsidiary of Wright, at an annual rate of 2/10 of 1% of the average daily net assets of each Fund for activities primarily intended to result in the sale of each Fund's shares. For the year ended December 31, 1995, the Principal Underwriter made a reduction of its fee to WUSTB and WTFB by $32,770 and $21,289, respectively. (5) SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in Fund shares were as follows: Year Ended December 31, ------------------------------------------------------------- 1995 1994 ------------------------------------------------------------- Shares Amount Shares Amount - ------------------------------------------------------------------------------------------------------------------------------- WRIGHT U.S. TREASURY FUND -- Sales.................................................... 111,589 $ 1,478,738 162,879 $ 2,104,165 Issued to shareholders in payment of distributions declared.............................. 41,352 557,152 62,116 805,054 Redemptions.............................................. (482,923) (6,531,999) (943,611) (12,465,253) ---------- ------------- ---------- ------------- Net decrease......................................... (329,982) $ (4,496,109) (718,616) $ (9,556,034) ========== ============== ========== ============== WRIGHT U.S. TREASURY NEAR TERM FUND -- Sales.................................................... 2,507,050 $ 25,756,963 4,457,277 $ 46,681,687 Issued to shareholders in payment of distributions declared................................. 657,890 6,744,268 1,093,362 11,252,377 Redemptions..............................................(10,814,467) (110,894,862) (19,306,382) (199,439,187) ---------- ------------- ---------- ------------- Net decrease......................................... (7,649,527) $(78,393,631) (13,755,743) $(141,505,123) ========== ============== ========== ============== WRIGHT TOTAL RETURN BOND FUND -- Sales.................................................... 1,710,110 $ 21,132,654 3,088,029 $ 38,238,580 Issued to shareholders in payment of distributions declared.............................. 470,132 5,784,061 800,418 9,609,763 Redemptions.............................................. (5,380,600) (65,580,321) (11,284,858) (138,048,649) ---------- ------------- ---------- ------------- Net decrease......................................... (3,200,358) $(38,663,606) (7,396,411) $(90,200,306) ========== ============== ========== ============== WRIGHT INSURED TAX-FREE BOND FUND -- Sales.................................................... 277,377 $ 3,172,217 307,219 $ 3,650,011 Issued to shareholders in payment of distributions declared ............................. 24,036 276,793 52,115 597,038 Redemptions.............................................. (422,274) (4,849,282) (889,361) (10,300,948) ---------- ------------- ---------- ------------- Net decrease......................................... (120,861) $ (1,400,272) (530,027) $ (6,053,899) ========== ============== ========== ============== WRIGHT CURRENT INCOME FUND -- Sales.................................................... 796,965 $ 8,232,880 1,447,569 $ 14,915,507 Issued to shareholders in payment of distributions declared.............................. 397,997 4,102,611 530,312 5,337,338 Redemptions.............................................. (3,646,704) (37,720,363) (4,014,808) (40,491,585) ---------- ------------- ---------- ------------- Net decrease......................................... (2,451,742) $(25,384,872) (2,036,927) $(20,238,740) ========= ============ ========= ============
(6) INVESTMENT TRANSACTIONS The Trust invests primarily in debt securities. The ability of the issuers of the debt securities held by the Trust to meet their obligations may be affected by economic developments in a specific industry or municipality. Purchases and sales and maturities of investments, other than short-term obligations, were as follows: Year Ended December 31, 1995 -------------------------------------------------------------------------------------------- Wright U.S. Wright U.S. Treasury Wright Total Wright Insured Wright Current Treasury Fund Near Term Fund Return Bond Fund Tax-Free Bond Fund Income Fund - -------------------------------------------------------------------------------------------------------------------------------- Purchases -- Non-U.S. Gov't Obligations.. $ -- $ -- $ 5,301,420 $ 840,389 $ -- ============== ============== ============== ============== ============== U.S. Gov't Obligations...... $ 1,318,383 $ 35,726,875 $ 57,719,949 $ -- $ -- ============== ============== ============== ============== ============== Sales -- Non-U.S. Gov't Obligations.. $ -- $ -- $ 26,913,665 $ 2,879,942 $ -- ============== ============== ============== ============== ============== U.S. Gov't Obligations...... $ 5,556,281 $ 107,673,626 $ 74,330,957 $ -- $ 20,004,409 ============== ============== ============== ============== ============== - ---------------------------------------------------------------------------------------------------------------------------------
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) in value of the investments owned at December 31, 1995, as computed on a federal income tax basis, are as follows: Wright U.S. Wright U.S. Treasury Wright Total Wright Insured Wright Current Treasury Fund Near Term Fund Return Bond Fund Tax-Free Bond Fund Income Fund - ---------------------------------------------------------------------------------------------------------------------------- Aggregate cost................... $ 12,564,565 $136,992,741 $113,147,771 $ 9,241,816 $ 65,104,907 ============= ============= ============= ============= ============= Gross unrealized appreciation.... $ 2,326,649 $ 4,674,371 $ 8,044,555 $ 581,293 $ 1,401,952 Gross unrealized depreciation.... -- (270,485) (395,036) (3,441) (456,022) ------------ ------------ ------------ ------------ ------------ Net unrealized appreciation. $ 2,326,649 $ 4,403,886 $ 7,649,519 $ 577,852 $ 945,930 ============= ============= ============= ============= ============= - ----------------------------------------------------------------------------------------------------------------------------
(8) LINE OF CREDIT The Trust participates with other funds managed by Wright in a line of credit with a bank which allows the Funds to borrow up to $20,000,000 collectively. The line of credit consists of a $10,000,000 committed facility and a $10,000,000 uncommitted facility. Interest is charged to each fund based on its borrowings, at a rate equal to the bank's base rate. In addition, the funds pay a commitment fee computed at a rate of 1/4 of 1% of $10,000,000 less the value of any borrowing. The Wright Insured Tax-Free Bond Fund had loans outstanding of $20,000 at December 31, 1995. INDEPENDENT AUDITORS' REPORT =============================================================================== To the Trustees and Shareholders of The Wright Managed Income Trust: We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Wright U.S. Treasury Fund, Wright U.S. Treasury Near Term Fund, Wright Total Return Bond Fund, Wright Insured Tax-Free Bond Fund, and Wright Current Income Fund of The Wright Managed Income Trust as of December 31, 1995, the related statements of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1995 and 1994, and the financial highlights for each of the years in the five-year period ended December 31, 1995. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of the securities owned at December 31, 1995, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of each of the respective Funds constituting The Wright Managed Income Trust as of December 31, 1995, the results of their operations, the changes in their net assets, and their financial highlights for the respective stated periods in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Boston, Massachusetts February 2, 1996 - ------------------------------------------------------------------------------- Description of the art work on the back cover of the report Three thin vertical red lines on the right side of the page. - ------------------------------------------------------------------------------- THE WRIGHT MANAGED INCOME TRUST ANNUAL REPORTS OFFICERS AND TRUSTEES OF THE FUNDS Peter M. Donovan, President and Trustee H. Day Brigham, Jr., Vice President , Secretary and Trustee A. M. Moody III, Vice President and Trustee Judith R. Corchard, Vice President Winthrop S. Emmet, Trustee Leland Miles, Trustee Lloyd F. Pierce, Trustee George R. Prefer, Trustee Raymond Van Houtte, Trustee James L. O'Connor, Treasurer William J. Austin, Jr., Assistant Treasurer ADMINISTRATOR Eaton Vance Management 24 Federal Street Boston, Massachusetts 02110 INVESTMENT ADVISER Wright Investors' Service 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 PRINCIPAL UNDERWRITER Wright Investors' Service Distributors, Inc. 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 CUSTODIAN Investors Bank & Trust Company 89 South Street Boston, Massachusetts 02111 TRANSFER AND DIVIDEND DISBURSING AGENT First Data Investor Services Group Wright Managed Investment Funds P.O. Box 1559 Boston, Massachusetts 02104 INDEPENDENT AUDITORS Deloitte & Touche LLP 125 Summer Street Boston, Massachusetts 02110 This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of a mutual fund unless accompanied or preceded by a Fund's current prospectus. - ------------------------------------------------------------------------------- Description of art work on the front cover of the report Three thin vertical green lines on the right side of the page. - ------------------------------------------------------------------------------- ANNUAL REPORT DECEMBER 31, 1995 WRIGHT U.S. TREASURY MONEY MARKET FUND THE WRIGHT MANAGED INVESTMENT FUNDS WRIGHT U.S. TREASURY MONEY MARKET FUND =============================================================================== WRIGHT U.S. TREASURY MONEY MARKET FUND seeks a high rate of current income but with added safety that comes from limiting its investments to securities of the U.S. Government and its agencies. There may be an added advantage to investors that reside in states and municipalities that do not tax dividend income from mutual funds investing exclusively in U.S. Government securities. TABLE OF CONTENTS =============================================================================== INVESTMENT OBJECTIVES..................Inside Front Cover LETTER TO SHAREHOLDERS................................ 1 WRIGHT U.S. TREASURY MONEY MARKET FUND Monthly Net Income Per Share................ 2 Portfolio of Investments.................... 3 Financial Statements........................ 4 WRIGHT U.S. TREASURY MONEY MARKET FUND =============================================================================== February 1996 Dear Shareholders: The Wright U.S. Treasury Money Market Fund (WTMM) had a 1.3% total return for the fourth quarter of 1995, matching the return of the average Treasury money market fund. For all of 1995, the Fund's return was 5.3%, also in line with the average money market fund's performance. WTMM, which holds only short-term U.S. Treasury securities, had an average maurity of 89 days at the end of the fourth quarter, up from 75 days three months earlier. Three-month Treasury bill rates declined by 33 basis points in the final quarter of 1995. Much of the decline came late in the quarter following the Federal Reserve's 25 basis-point cut in the fed funds rate. With the economy clearly slowing in the fourth quarter and into early 1996, Wright expects the Fed to ease further early in 1996, by as much as 75 basis points; lower returns on short-term securities appear likely. It should be understood that performance data quoted above represents past performance which is not predictive of future performance and that the investment return of a money market fund fluctuates on a daily basis. Sincerely, Peter M. Donovan President WRIGHT U.S. TREASURY MONEY MARKET FUND -- 1995 ==============================================================================
MONTHLY CUMULATIVE ANNUALIZED INVESTMENT RETURN MONTH NET INCOME RETURN ______________________________________ ENDING PER SHARE PER SHARE (a) 1 Month 3 Month Cumulative - ------------------------------------------------------------------------------------------------------------------------- $1,000.00 Jan. 31 $0.004187833 1,004.19 4.93% 4.93% Feb. 28 0.003954237 1,008.16 5.15% 5.05% Mar. 31 0.004495298 1,012.69 5.29% 5.15% 5.15% Apr. 30 0.004486644 1,017.23 5.46% 5.33% 5.24% May 31 0.004575083 1,021.89 5.39% 5.40% 5.29% Jun. 30 0.004443119 1,026.43 5.41% 5.44% 5.33% Jul. 31 0.004539099 1,031.09 5.34% 5.40% 5.35% Aug. 31 0.004461950 1,035.69 5.25% 5.36% 5.36% Sep. 30 0.004266125 1,040.11 5.19% 5.29% 5.36% Oct. 31 0.004355057 1,044.64 5.13% 5.21% 5.36% Nov. 30 0.004144636 1,048.97 5.04% 5.14% 5.35% Dec. 31 0.004214358 1,053.39 4.96% 5.07% 5.34% ---------- Total $0.052123439 (a): Assumes reinvestment of monthly dividends.
WRIGHT U.S. TREASURY MONEY MARKET FUND PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 =============================================================================== Face Interest Maturity Amount Issuer Rate Date Value - ------------------------------------------------------------------------------- $ 200,000 U. S. Treasury Bills 5.240% 01/25/96 $ 199,301 100,000 U. S. Treasury Bills 5.200% 01/25/96 99,653 600,000 U. S. Treasury Bills 5.210% 01/25/96 597,915 3,500,000 U. S. Treasury Bills 4.700% 02/01/96 3,485,835 1,200,000 U. S. Treasury Bills 5.350% 02/15/96 1,191,975 2,300,000 U. S. Treasury Bills 5.270% 02/22/96 2,282,491 5,250,000 U. S. Treasury Bills 5.310% 02/29/96 5,204,312 950,000 U. S. Treasury Bills 5.280% 03/07/96 940,804 400,000 U. S. Treasury Bills 5.310% 03/07/96 396,106 1,150,000 U. S. Treasury Bills 5.295% 03/07/96 1,138,837 5,500,000 U. S. Treasury Bills 4.760% 03/07/96 5,452,003 2,400,000 U. S. Treasury Bills 5.340% 03/14/96 2,374,012 1,000,000 U. S. Treasury Bills 5.300% 03/14/96 989,253 3,800,000 U. S. Treasury Bills 5.350% 03/28/96 3,750,869 300,000 U. S. Treasury Bills 5.300% 04/04/96 295,848 400,000 U. S. Treasury Bills 5.260% 04/04/96 394,506 900,000 U. S. Treasury Bills 5.270% 04/04/96 887,616 200,000 U. S. Treasury Bills 5.240% 04/04/96 197,264 300,000 U. S. Treasury Bills 5.210% 04/04/96 295,919 1,600,000 U. S. Treasury Bills 5.315% 04/04/96 1,577,795 600,000 U. S. Treasury Bills 5.190% 04/04/96 591,869 3,500,000 U. S. Treasury Bills 5.000% 04/25/96 3,444,097 800,000 U. S. Treasury Bills 5.250% 05/09/96 784,950 600,000 U. S. Treasury Bills 5.270% 05/09/96 588,669 3,300,000 U. S. Treasury Bills 5.240% 05/09/96 3,238,037 1,400,000 U. S. Treasury Bills 5.220% 05/16/96 1,372,392 300,000 U. S. Treasury Bills 5.190% 05/16/96 294,118 400,000 U. S. Treasury Bills 5.120% 05/16/96 392,263 2,000,000 U. S. Treasury Bills 5.180% 05/30/96 1,956,833 200,000 U. S. Treasury Bills 5.210% 05/30/96 195,658 250,000 U. S. Treasury Bills 5.230% 05/30/96 244,552 800,000 U. S. Treasury Bills 5.220% 05/30/96 782,600 ---------- TOTAL INVESTMENTS AT AMORTIZED COST -- 99.5% $45,638,352 Other Assets, less Liabilities -- 0.5% 250,595 ---------- Net Assets -- 100.0% $45,888,947 ===========
See notes to financial statements WRIGHT U.S. TREASURY MONEY MARKET FUND =============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 - ------------------------------------------------------------------------------- ASSETS: Investments, at amortized cost and value (Note 1A).................................... $45,638,352 Cash............................................ 237,761 Receivable for Fund shares sold................. 195,080 Deferred organizational costs (Note 1D)......... 5,440 ---------- Total Assets................................. $46,076,633 LIABILITIES: Payable for Fund shares reacquired.... $121,922 Payable to dividend disbursing agent.. 52,032 Investment Adviser fee payable........ 4,916 Custodian fee payable................. 3,100 Trustees' fees payable................ 250 Accrued expenses and other liabilities 5,466 -------- Total Liabilities.................. 187,686 ----------- NET ASSETS (Consisting of paid-in capital)...... $45,888,947 =========== Net Asset Value, Offering Price, and Redemption Price Per Share ($45,888,947 / 45,888,947 shares of beneficial interest outstanding).......... $1.00 ===========
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------- INVESTMENT INCOME: Interest income (Note 1B)........................$ 2,632,668 ----------- Expenses -- Investment Adviser fee (Note 3)....... $162,732 Administrator fee (Note 3)............ 32,543 Compensation of Trustees not affiliated with the Investment Adviser or Administrator.. 1,563 Custodian fee (Note 3)................ 42,735 Audit and legal....................... 22,068 Registration costs.................... 15,385 Transfer & dividend disbursing agent fees ................................ 10,284 Shareholder communication expense..... 5,774 Amortization of organization costs(Note 1D)4,630 Printing.............................. 2,611 Miscellaneous......................... 2,526 -------- Total expenses...................... $302,851 -------- Deduct -- Reduction of Investment Adviser fee (Note 3)......................... $ 87,656 Reduction of Custodian fee (Note 3)... 5,959 -------- Total deductions.................... $ 93,615 -------- Net expenses................................... 209,236 ----------- Net investment income..........................$ 2,423,432 ===========
STATEMENTS OF CHANGES IN NET ASSETS - ------------------------------------------------------------------------------- Year Ended December 31 1995 1994 ----------------------------- FROM OPERATIONS: Net investment income.................................................................. $ 2,423,432 $ 1,697,224 ------------ ------------ DIVIDENDS DECLARED FROM NET INVESTMENT INCOME (Note 2).................................... $ (2,423,432) $ (1,697,224) ------------ ------------ FROM FUND SHARE (PRINCIPAL) TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE (Note 4): Proceeds from sale of shares........................................................... $217,876,175 $204,314,264 Net asset value of shares issued to shareholders in connection with the merger of Wright Managed Money Market Fund (Note 7)............................................ -- 16,981,815 Net asset value of shares issued to shareholders in payment of dividends declared...... 1,823,063 1,121,380 Cost of shares reacquired.............................................................. (242,687,133) (164,551,690) ------------ ------------ Increase (decrease) in net assets from Fund share transactions....................... $(22,987,895) $ 57,865,769 ------------ ------------ Net increase (decrease) in net assets.............................................. $(22,987,895) $ 57,865,769 NET ASSETS: Beginning of year...................................................................... 68,876,842 11,011,073 ------------ ------------ End of year............................................................................ $ 45,888,947 $ 68,876,842 ============= =============
See notes to financial statements. WRIGHT U.S. TREASURY MONEY MARKET FUND ===============================================================================
Year Ended December 31, ------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991(2) - --------------------------------------------------------------------------------------------------------------------------- Net asset value -- beginning of period......... $1.00 $1.00 $1.00 $1.00 $1.00 Income from Investment Operations: Net investment income(1) .................. 0.05212 0.03494 0.02503 0.03221 0.02526 Less Distributions: From net investment income.................. (0.05212) (0.03494) (0.02503) (0.03221) (0.02526) -------- -------- -------- -------- -------- Net asset value -- end of period............... $1.00 $1.00 $1.00 $1.00 $1.00 ========= ========= ========= ========= ========= Total Return(4)................................ 5.34% 3.55% 2.53% 3.27% 5.06%(3) Ratios/Supplemental Data: Net assets, end of year (000 omitted)....... $45,889 $68,877 $11,011 $13,856 $15,233 Ratio of net expenses to average daily net assets................................ 0.46%(5) 0.45% 0.45% 0.46% 0.25%(3) Ratio of net investment income to average daily net assets................................ 5.22% 3.77% 2.52% 3.19% 4.95%(3) (1)During each of the above periods, the Investment Adviser reduced its fee and in certain periods was allocated a portion of the operating expenses. Had such actions not been undertaken, net investment income per share and the ratios would have been as follows: Year Ended December 31, ------------------------------------------------------------- 1995 1994 1993 1992 1991(2) - --------------------------------------------------------------------------------------------------------------------------- Net investment income per share................ $0.05120 $0.03253 $0.01977 $0.02958 $0.02159 ========= ========= ========= ========= ========= Ratios (As a percentage of average daily net assets): Expenses.................................... 0.65% 0.71% 0.97% 0.72% 0.97%(3) ========= ========= ========= ========= ========= Net investment income ...................... 5.03% 3.51% 1.99% 2.93% 4.23%(3) ========= ========= ========= ========= ========= (2) For the period from the start of business, June 28, 1991, to December 31, 1991. (3) Annualized. (4)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the payable date. (5)Custodian fees were reduced by credits resulting from cash balances the Fund maintained with the Custodian (Note 3). The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, in accordance with reporting regulations in effect beginning in 1995. If these credits were considered, the ratio of net expenses to average daily net asets would have been reduced to 0.45%.
See notes to financial statements WRIGHT U.S. TREASURY MONEY MARKET FUND NOTES TO FINANCIAL STATEMENTS =============================================================================== (1) SIGNIFICANT ACCOUNTING POLICIES Wright U.S. Treasury Money Market Fund (the Fund) is a series of The Wright Managed Income Trust (the Trust) and is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end, management investment company. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A. Valuation of Investments -- Money market instruments are valued at amortized cost, which the Trustees have determined in good faith constitutes fair value. The Fund's use of amortized cost is subject to the Fund's compliance with certain conditions as specified under Rule 2a-7 of the Investment Company Act of 1940. B. Interest Income -- Interest income consists of interest accrued and discount earned (including both original issue and market discount) on the investments of the Fund, accrued ratably to the date of maturity plus or minus net realized gain or loss, if any, on investments. C. Federal Taxes -- The Fund's policy is to comply with the provisions of the Internal Revenue Code available to regulated investment companies and distribute to shareholders each year all of its taxable income. Accordingly, no provision for federal income or excise tax is necessary. D. Deferred Organization Costs -- Costs incurred by the Fund in connection with its organization are being amortized on a straight-line basis through June 1996. E. Other -- Investment transactions are accounted for on the date the investments are purchased or sold. (2) DIVIDENDS The net investment income of the Fund is determined daily, and all of the net investment income so determined is declared as a dividend to shareholders of record at the time of such determination. Dividends are distributed monthly in the form of additional shares of the Fund or, at the election of the shareholder, in cash, on the payable date. (3) INVESTMENT ADVISER AND ADMINISTRATOR FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Fund has engaged Wright Investors' Service (Wright) to perform investment management, investment advisory, and other services. For its services, Wright is compensated based on a percentage of average daily net assets which rate is adjusted as average daily net assets exceed certain levels. For the year ended December 31, 1995, the effective annual rate was 0.35%. To enhance the net income of the Fund, Wright reduced its investment adviser fee by $87,656. The Fund has also engaged Eaton Vance Management (Eaton Vance) to act as administrator of the Fund. Under the Administration Agreement, Eaton Vance is responsible for managing the business affairs of the Fund and is compensated based on a percentage of average daily net assets which rate is reduced as average daily net assets exceed certain levels. For the year ended December 31, 1995, the effective annual rate was 0.07%. The custodian fee was paid to Investors Bank & Trust Company (IBT) for its services as custodian to the Fund. Prior to November 10, 1995, IBT was an affiliate of Eaton Vance. Pursuant to the custodian agreement, IBT receives a fee reduced by credits which are determined based on the average daily cash balances the Fund maintains with IBT. All significant credits are reported as a reduction of expenses in the Statement of Operations. Certain of the Trustees and officers of the Trust are directors/trustees and/or officers of the above organizations. Except as to Trustees who are not affiliated with Wright or Eaton Vance, Trustees and officers receive remuneration for their services to the Fund out of the fees paid to Wright or Eaton Vance. (4) SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). (5) INVESTMENTS Purchases and sales and maturities of investments aggregated $297,818,179 and $319,229,911, respectively. (6) LINE OF CREDIT The Fund participates with other funds managed by Wright in a line of credit with a bank which allows the Funds to borrow up to $20,000,000 collectively. The line of credit consists of a $10,000,000 committed facility and a $10,000,000 uncommitted facility. Interest is charged to each fund based on its borrowings, at a rate equal to the bank's base rate. In addition, the funds pay a prorated commitment fee computed at a rate of 1/4 of 1% of $10,000,000 less the value of any borrowing. The Trust did not have any borrowings under the line of credit during the year ended December 31, 1995. (7) ACQUISITION OF WRIGHT MANAGED MONEY MARKET FUND On March 30, 1994, the Fund acquired the net assets of Wright Managed Money Market Fund pursuant to a plan of reorganization dated March 28,1994 and approved by the shareholders of both funds. The acquisition was accomplished by a tax-free exchange of 16,981,815 shares of Wright Managed Money Market Fund for the same number of shares of Wright U.S. Treasury Money Market Fund. The aggregate net assets of the Fund immediately after the acquisition was $40,883,041. INDEPENDENT AUDITORS' REPORT =============================================================================== To the Trustees and Shareholders of The Wright Managed Income Trust: We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Wright U.S. Treasury Money Market Fund (one of the series constituting The Wright Managed Income Trust) as of December 31, 1995, and the related statement of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1995 and 1994, and the financial highlights for each of the years in the five-year period ended December 31, 1995. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of the securities owned at December 31, 1995, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of Wright U.S. Treasury Money Market Fund series of The Wright Managed Income Trust as of December 31, 1995, the results of its operations, the changes in its net assets, and its financial highlights for the respective stated periods in conformity with generally accepted accounting principles. DELOITTE & TOUCHE, LLP Boston, Massachusetts February 2, 1996 - ------------------------------------------------------------------------------- Description of art work on the back cover of the report Three thin vertical green lines on the right side of the page. - ------------------------------------------------------------------------------- THE WRIGHT U.S. TREASURY MONEY MARKET FUND ANNUAL REPORT OFFICERS AND TRUSTEES OF THE FUNDS Peter M. Donovan, President and Trustee H. Day Brigham, Jr., Vice President, Secretary and Trustee A. M. Moody III, Vice President and Trustee Judith R. Corchard, Vice President Winthrop S. Emmet, Trustee Leland Miles, Trustee Lloyd F. Pierce, Trustee George R. Prefer, Trustee Raymond Van Houtte, Trustee James L. O'Connor, Treasurer William J. Austin, Jr., Assistant Treasurer ADMINISTRATOR Eaton Vance Management 24 Federal Street Boston, Massachusetts 02110 INVESTMENT ADVISER Wright Investors' Service 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 PRINCIPAL UNDERWRITER Wright Investors' Service Distributors, Inc. 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 CUSTODIAN Investors Bank & Trust Company 89 South Street Boston, Massachusetts 02111 TRANSFER AND DIVIDEND DISBURSING AGENT First Data Investor Services Group Wright Managed Investment Funds P.O. Box 1559 Boston, Massachusetts 02104 INDEPENDENT AUDITORS Deloitte & Touche LLP 125 Summer Street Boston, Massachusetts 02110 This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of a mutual fund unless accompanied or preceded by a Fund's current prospectus. -----END PRIVACY-ENHANCED MESSAGE-----