-----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, J6RZLnzrgtSnLhNZhbJqmkasve/zoDsAk31Psjsabv/3ZjNUn+6PdqemMGu6rWOv RJYyd2NNcNXRiehKRDMFDA== 0000715165-99-000008.txt : 19990222 0000715165-99-000008.hdr.sgml : 19990222 ACCESSION NUMBER: 0000715165-99-000008 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990219 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: N-30D SEC ACT: SEC FILE NUMBER: 811-03668 FILM NUMBER: 99545858 BUSINESS ADDRESS: STREET 1: 24 FEDERAL ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174828260 MAIL ADDRESS: STREET 1: 24 FEDERAL ST STREET 2: 11TH FLOOR CITY: BOSTON STATE: MA ZIP: 02110 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 N-30D 1 ANNUAL REPORT - -------------------------------------------------------------------------------- Description of art work on front cover of report. Solid blue box covering entire left hand side of cover with the name WRIGHT INVESTORS'SERVICE in white at top. - ------------------------------------------------------------------------------- THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS Annual Report December 31, 1998 The Wright Managed Blue Chip Investment Funds ================================================================================ THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS CONSISTS OF FOUR EQUITY FUNDS FROM THE WRIGHT MANAGED EQUITY TRUST, A MONEY MARKET FUND AND FOUR OTHER FIXED INCOME FUNDS FROM THE WRIGHT MANAGED INCOME TRUST. EACH OF THE NINE FUNDS HAVE DISTINCT INVESTMENT OBJECTIVES AND POLICIES. 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), PORTFOLIO ALLOCATION STRATEGIES CAN BE ALTERED AS DESIRED TO MEET CHANGING MARKET CONDITIONS OR CHANGING REQUIREMENTS WITHOUT INCURRING ANY SALES CHARGES. EXCEPT AS NOTED, EACH FUND OFFERS TWO CLASSES OF SHARES DESIGNATED AS INSTITUTIONAL SHARES AND STANDARD SHARES. Approved Wright Investment List Securities selected for equity portfolios are drawn from investment lists prepared by Wright Investors' Service (Wright) known as The Approved Wright Investment List (AWIL) The Approved Wright Junior Blue Chip List (AWJBCL) and the International Approved Wright Investment List (International AWIL). Companies 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 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. Four Equity Funds WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) seeks to enhance total investment return of price appreciation plus income by providing active management of equities of well-established companies meeting strict quality standards. Equities selected are limited to those companies 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 FUND (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 AWJBCL which consists of smaller companies than those on the AWIL but which meet a higher standard of profitability and growth characteristics. WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC) seeks to enhance total investment return of price appreciation plus income by providing management of a broadly diversified portfolio of equities of larger well-established companies meeting strict quality standards. In selecting companies 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 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 INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC). This is a broadly diversified portfolio of equities of well-established, non-U.S. companies meeting strict quality standards. The portfolio may buy common stocks traded on the securities exchange of the country in which the company is based or it may purchase American Depositary Receipts (ADR's) traded in the United States. The portfolio is denominated in U.S. dollars and investors should understand that fluctuations in foreign exchange rates may impact the value of their investment. A Money Market Fund WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) seeks a high rate of current income but with added safety that comes from limiting its investments to securities of the U.S. Government and its agencies. There may be an added advantage to investors that reside in states and municipalities that do not tax dividend income from mutual funds investing exclusively in U.S. Government securities. This Fund only offers Standard Shares. Four Fixed-Income Funds WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB) (name changed to Wright U.S. Government Near Term Fund on July 1, 1998) is a diversified portfolio concentrating on bonds and other obligations of the U.S. Government and U.S. Government Agencies with an average weighted maturity of less than 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 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 TOTAL RETURN BOND FUND (WTRB) is a diversified portfolio of quality government and corporate bonds and other debt securities of varying maturities which, in the Adviser's opinion, will achieve the portfolio objective of best total return, i.e. the best total of ordinary income plus capital appreciation. Accordingly, investment selections and maturities may differ depending on the particular phase of the interest rate cycle. Dividends are accrued daily and paid monthly. This Fund only offers Standard Shares. 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 Management Discussion..................................... 2 Performance Graphs........................................ 7 Dividend Distributions.................................... 11 FINANCIAL STATEMENTS ------------------------------------- Wright Managed Equity Trust Statements of Assets and Liabilities.................. 16 Statements of Operations.............................. 18 Statements of Changes in Net Assets................... 19 Financial Highlights.................................. 21 Notes to Financial Statements......................... 26 Wright Managed income Trust Statements of Assets and Liabilities................... 31 Statements of Operations............................... 33 Statements of Changes in Net Assets.................... 35 Financial Highlights................................... 37 Notes to Financial Statements.......................... 43 Wright Blue Chip Master Portfolio trust Statements of Assets and Liabilities................... 49 Statements of Operations............................... 51 Statements of Changes in Net Assets.................... 53 Supplementary Data..................................... 56 Notes to Financial Statements.......................... 58 PORTFOLIOS ---------------------------- Wright Major Blue Chip Equities Fund (WMBC)............ 63 Wright Total Return Bond Fund (WTRB)................... 65 Wright U.S. Treasury Money Market Fund (WTMM).......... 67 Wright Selected Blue Chip Equities Portfolio (WBC)..... 68 Wright Junior Blue Chip Equities Portfolio (WJBC)...... 70 Wright International Blue Chip Equities Portfolio (WIBC)72 Wright U.S. Government Near Term Portfolio (WNTB).......75 Wright U.S. Treasury Portfolio (WUSTB)..................76 Wright Current Income Portfolio (WCIF)..................77 LETTER TO SHAREHOLDERS ================================================================================ February 1999 Dear Shareholders: The year 1998 will go down in stock market history for its volatility and for the huge performance disparities between big stocks, which generally did well, and smaller ones, which mostly lagged. Investor sentiment ranged over the spectrum from euphoria to despair during 1998: the third quarter was the worst quarter for the world's stock markets since 1990; in the fourth quarter, stock prices came back strongly. Some well-timed interest rate cuts by the Federal Reserve helped to stem last autumn's flight from stocks. European stocks took their cue from the U.S. in 1998, rising broadly; stocks in Asia rallied in the fourth quarter but generally not enough to make up for losses over the first nine months of the year. Bonds had a flat fourth quarter but respectable gains for all of 1998. The U.S. economy continues to sail along at a good clip, with consumers showing little concern over international economic difficulties. U.S. manufacturing has been the one sector affected by the Asian recession, with factories shedding nearly 300,000 jobs over the past nine months. Service-producing industries, on the other hand, have created 2 1/2 million new jobs over this period, maintaining the strong positive trend in personal income. Consumer confidence remains high, although a sell-off in the stock market or renewed global financial strains could cause spending to slow. At this stage, though, it appears more likely that the U.S. economy will lend support to the struggling economies of the world in 1999, rather than being dragged down to their levels. Some slowing in economic growth is almost certainly coming, but Wright still forecasts real GDP growth of better than 2%, with inflation staying low, in 1999. Wild swings in investment sentiment - from July's heady optimism to the despair of August back to renewed bullishness in January 1999 - point up a new volatility in U.S. stocks. From 1991 to the middle of 1997, the U.S. stock market was a model of stability, sensibility and low volatility. But over the past 18 months, stock market fluctuations have been growing steadily. Since last August, as stock prices have regained momentum, investor confidence has grown into what appeared to be full-blown euphoria in early 1999. The breadth of the rally hasn't exactly been inspiring, however; the advance has become more and more concentrated in technology and speculative internet stocks. Investment fundamentals remain reasonably positive today, but one cannot help wonder if they are so good as to warrant the highest P/E multiples in history. Stocks may be setting themselves up for a retreat, while top-grade bond holdings offer a measure of stability and value to portfolios that could come in handy should stock prices correct to more normal levels. There are any number of good quality stocks that are still priced at reasonable values, and investors should be well rewarded by such holdings over the next several years. But in the short run, the potential for a reversal in stock prices appears to be high, particularly for today's high-flying market leaders. As always, it should be understood that past performance does not guarantee future results and that investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Investing internationally entails additional risks, such as currency fluctuations and potential political instability. The paragraphs on the following pages discuss the various economic, political and market factors affecting the investment performance of the Wright Equity and Fixed-Income Funds during 1998 and prospects for the period ahead. Sincerely, /s/ Peter M. Donovan Peter M. Donovan President MANAGEMENT DISCUSSION ================================================================================ EQUITY FUNDS - ------------- THE NEARLY YEAR-LONG INVESTIGATION OF PRESIDENT CLINTON, CULMINATING IN HIS IMPEACHMENT DURING THE FOURTH QUARTER, PROVIDED AN UNCERTAIN POLITICAL BACKDROP FOR THE STOCK MARKET DURING 1998. AT THE SAME TIME, FINANCIAL CRISIS IN RUSSIA AND BRAZIL, ON TOP OF ONGOING ECONOMIC WEAKNESS IN JAPAN, CONTRIBUTED TO MARKET VOLATILITY. CONTRARY TO EXPECTATIONS OF AN EXPORT-RELATED SLOWDOWN, HOWEVER, THE U.S. ECONOMY HAS CONTINUED TO EXPAND AT A ROBUST RATE. FOR ALL OF 1998, REAL GDP GREW BY 4%, MATCHING THE STRONG GROWTH OF 1996 AND 1997. THE REMARKABLE RESILIENCE OF THE U.S. ECONOMY PROBABLY MEANS THAT CORPORATE PROFITS WILL RECOVER MODESTLY IN 1999, AFTER A RELATIVELY DISAPPOINTING 1998. INFLATION IS FORECAST TO REMAIN UNDER CONTROL IN THE COMING YEAR, AND THE FEDERAL RESERVE WILL PROBABLY MAINTAIN A STEADY INTEREST RATE POLICY. STOCK PRICE/EARNINGS MULTIPLES ARE HISTORICALLY HIGH, SUGGESTING THAT EQUITY RETURNS WILL BE MORE MODEST IN 1999 THAN THEY HAVE BEEN OVER THE PAST FOUR YEARS.
1998 1998 1997 1996 1995 1994 1993 1992 1991 Total Return Q4 Year Year Year Year Year Year Year Year - ------------------------------------------------------------------------------------------------------------------------------ Selected Blue Chips (WBC) 18.8% 0.1% 32.7% 18.6% 30.3% -3.5% 2.1% 4.7% 36.0% Major Blue Chips (WMBC) 23.8% 20.4% 33.9% 17.6% 29.0% -0.7% 1.0% 8.0% 38.9% Junior Blue Chips (WJBC) 14.8% -4.9% 28.9% 17.5% 20.5% -2.8% 7.9% 3.3% 37.0% Int'l Blue Chips (WIBC) Standard Shares 16.9% 6.1% 1.5% 20.7% 13.6% -1.6% 28.2% -3.9% 17.2% Institutional Shares 17.2% 7.5% -6.4%* - - - - - - - ------------------------------------------------------------------------------------------------------------------------------- *: For the period from July 7, 1997 (start of business) to December 31, 1997.
WRIGHT SELECTED BLUE CHIP EQUITIES FUND The Wright Selected Blue Chip Fund (WSBC) had a total return of 18.8% in the fourth quarter of 1998. The WSBC's fourth-quarter gain was close to the 18.6% total return earned by the NYSE Composite but lagged the 23.1% return reported by the Lipper average of equity growth funds. Over all of 1998, the WSBC Fund was virtually break-even in total return, while the Lipper average returned 22.9% and the NYSE returned 18.5%. The domination of a relatively few large-cap and internet stocks was the story of the stock market and the laggard performance of the WSBC during 1998. Wright's strict quality standards preclude investing in speculative issues - such as internet stocks with no or poor earnings history. Additionally, many of the big-cap stocks that dominated the performance of the major stock market averages last year have risen to exorbitant P/E levels. In the fourth quarter, underweighting in electronics, communications and retail stocks hampered the WSBC, although the individual securities in these groups selected for the Fund did well. Overweighting in the chemical, metal products and utility industries also hurt. A big positive for the WSBC Fund in the fourth quarter was its underweighting in energy stocks, which were weak in the quarter; a strong performance by the recreation companies in the Fund also helped results. In the past, periods of stock market dominance by a few issues (e.g., the "nifty fifty" of the early 1970s) have been followed by periods in which overpriced market favorites correct to more reasonable values. Wright believes that the high-quality, reasonably priced issues held in the WSBC are likely to fare better than the overpriced stock market leaders over the next couple years. The WSBC ended 1998 holding stocks with an average P/E multiple of 14 times expected year-ahead earnings, just half the valuation of the S&P 500 Composite. This dramatic undervaluation has developed despite the fact that the earnings growth expected for the WSBC stocks is as good or better than that for the S&P 500 over the next year and the next five years. WRIGHT JUNIOR BLUE CHIP EQUITIES FUND After outperforming the Value Line 1600-stock Composite handily in 1997, the Wright Junior Blue Chip Fund (WJBC) lagged in 1998, slipping 4.9% for the year compared with a loss of 1.1% for the Value Line benchmark and an 18.5% advance for the NYSE Composite. In the fourth quarter of 1998, small stock returns once again lagged big-stock returns. The Wright Junior Blue Chip Fund (WJBC) rose 14.8% in the quarter, in line with the 14.9% return on the Value Line Composite but behind the 18.6% return of the NYSE Composite. The WJBC Fund lagged in the fourth quarter primarily due to the strong performance of high-technology issues during this period; WJBC has only about half the weight in this group as the market averages. Additionally, overweighting in auto and paper stocks hurt the WJBC performance. On the other hand, underweighting in energy stocks helped WJBC's results, as did its relatively large positions in apparel and retail companies. Many of the high-tech stocks that led the market's advance during 1998 have become quite a bit overvalued, while the stocks in the WJBC Fund average a P/E multiple of 14 times year-ahead earnings, half the S&P 500's P/E. WRIGHT MAJOR BLUE CHIP EQUITIES FUND The Wright Major Blue Chip Fund (WMBC) returned 23.8% in the fourth quarter of 1998, exceeding the returns earned by the NYSE Composite (18.6%) and the Lipper average of equity growth funds (23.1%). For all of 1998, the WMBC Fund, which invests in the larger issues on the Approved Wright Investment List, returned 20.4%, slightly behind the Lipper average's 22.9% but ahead of the NYSE's 18.5% return. The WMBC's strong showing in the fourth quarter owes a lot to its overweighting and favorable stock selection in the retail industry. An underweight position in the oil and gas sector also helped. Weakness in some of the Fund's machinery and equipment stocks and an underweighting in communications stocks hurt. In the fourth quarter, the WMBC was able to perform well despite a below-average market cap (about $12 billion versus the S&P 500's $60 billion) and the fact that it holds few of the speculative high-tech issues that caught investor fancy late in the year. Going forward, as 1998's market favorites come back to earth, the WMBC stands to benefit from its relatively attractive valuation of 20 times year-ahead earnings - only about two-thirds of the S&P 500's year-ahead P/E. WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND The Wright International Blue Chip Fund (WIBC) Standard and Institutional Shares earned a 16.8% and 17.2% total return, respectively, in the fourth quarter of 1998, behind the 20.3% advance for the FT/S&P Actuaries World ex U.S. index. Over the 12 months of 1998, WIBC Standard and Institutional Shares returned 6.1% and 7.5%, respectively, as compared with 16.2% for the FT/S&P World ex U.S. index. Although lagging in 1998, WIBC topped the benchmark return in the each of the prior two years, and since its inception 9 1/4 years ago, WIBC has posted a 7.9% compound annual rate of return compared with 5.0% for the FT/S&P World ex U.S. index. Most of the WIBC underperformance in the fourth quarter can be attributed to its underweighted position in Japan, where dollar-denominated returns were boosted by the strong yen. A lagging performance by WIBC's U.K. holdings also hurt results. In the quarter, the Fund got good performance from its electronic and financial stocks and from its Canadian holdings. Overweight positions in such strong markets as the Netherlands, Finland, Spain and France also helped. As with the U.S., international markets face a lot of uncertainties in 1999. In Europe, the introduction of the euro has been relatively smooth, but the potential for temporary dislocations adds to the risks posed by high equity valuations and slowing economic growth. The worst may be over in Asia, but there is a long way to go before its economies are again healthy. And now Brazil's currency and debt problems are likely to cast a shadow on global markets for some time to come. More volatility is undoubtedly in store for international stock markets in 1999. FIXED-INCOME FUNDS FOR ALL OF 1998, TREASURY BOND YIELDS DECLINED AN AVERAGE OF 90 BASIS POINTS ALONG THE LENGTH OF THE YIELD CURVE. THIS PRODUCED LONG-TERM T-BOND RETURNS OF CLOSE TO 13% LAST YEAR, AND RETURNS ON INTERMEDIATE-TERM TREASURIES GOT CLOSE TO DOUBLE-DIGIT TERRITORY. WITH RISK AVERSION A DRIVING FORCE IN BONDS DURING 1998, CORPORATE BONDS, HIGH-YIELD BONDS AND EMERGING MARKET DEBT DID NOT FARE AS WELL AS TREASURIES; INVESTMENT-GRADE U.S. CORPORATES RETURNED ABOUT 9%, WHILE JUNK BONDS MANAGED ONLY A 4% RETURN. THE FOURTH QUARTER OF 1998 SAW THE U.S. BOND MARKET GIVE BACK SOME OF ITS BIG THIRD-QUARTER GAINS. AS INTEREST RATE CUTS BY THE FEDERAL RESERVE RESTORED INVESTOR CONFIDENCE, THE RENEWED APPEAL OF RISKIER ASSETS DREW FUNDS FROM U.S. TREASURY BONDS. THE QUARTER'S MODEST BACK-UP IN YIELDS WAS NOT ENOUGH TO KEEP 1998 FROM BEING A GOOD YEAR FOR BONDS. WRIGHT BELIEVES THAT INTEREST RATES WILL MOVE IRREGULARLY LOWER THIS YEAR. AS THE NEW YEAR BEGAN, DEFLATIONARY FORCES IN MUCH OF THE WORLD WERE KEEPING INFLATION UNDER CONTROL. WHAT'S MORE, THE U.S. ECONOMY ITSELF IS LIKELY TO SLOW BEFORE LONG. LOWER INTEREST RATES IN EUROPE AND THE TRANSFORMATION OF U.S. BUDGET DEFICITS INTO SURPLUSES ARE ALSO GOOD NEWS FOR BONDS. FEDERAL RESERVE MONETARY POLICY IS SOMEWHAT OF A QUESTION MARK FOR 1999. LATE IN 1998, THE FED SHIFTED TO A NEUTRAL POLICY STANCE FROM ITS PREVIOUS BIAS TOWARDS MONETARY EASE. THERE IS EVEN A CHANCE THAT THE FED COULD TIGHTEN - IN SUPPORT OF A FALLING DOLLAR, FOR EXAMPLE. WITH ANY RENEWAL OF WEAKNESS IN FINANCIAL MARKETS OR SIGNS THAT ASIA'S RECESSION THREATENS TO BRING THE EIGHT-YEAR U.S. EXPANSION TO AN END, THE 30-YEAR TREASURY BOND YIELD SHOULD HIT 4.5% SOMETIME IN 1999.
1998 1998 1997 1996 1995 1994 1993 1992 1991 Total Return Q4 Year Year Year Year Year Year Year Year - ----------------------------------------------------------------------------------------------------------------------------- U.S. Treasury Money Mkt (WTMM) 1.2% 4.7% 4.8% 4.9% 5.3% 3.6% 2.5% 3.3% n.a. U.S. Gov't Near-Term Bonds (WNTB) 0.4% 6.0% 5.9% 3.9% 11.9% -3.1% 8.0% 6.3% 13.1% U.S. Treasury Bonds (WUSTB) -0.6% 10.0% 9.1% -1.2% 28.2% -8.7% 15.9% 7.1% 17.6% Total Return Bonds (WTRB) -0.3% 9.6% 9.3% 0.9% 22.0% -6.6% 11.0% 7.1% 15.4% Current Income (WCIF) Standard Shares 0.5% 6.5% 8.6% 4.3% 17.5% -3.3% 6.6% 6.7% 15.3% Institutional Shares 0.7% 6.6% 4.4%* - - - - - - - ------------------------------------------------------------------------------------------------------------------------------ *: For the period from July 7, 1997 (start of business) to December 31, 1997.
WRIGHT U.S. TREASURY MONEY MARKET FUND For the final quarter of 1998, the Wright U.S. Treasury Money Market Fund (WTMM) earned a total return of 1.1%, bringing to 4.7% its total return for all of 1998. Comparable results for the average Treasury money market fund were 1.1% and 4.8%. At December 31, 1998, the WTMM had an average maturity of around 79 days; 12 months earlier, it was 83 days. Rates on 90-day T-bills increased 12 basis points in the fourth quarter; for all of 1998, bill rates declined 88 basis points (to 4.5% on a coupon equivalent basis). Three quarter-point reductions in the federal funds rate in the fourth quarter might ordinarily have brought T-Bill rates lower; but with Fed easing, fears of a global credit crunch subsided and yields edged higher. As 1999 begins, signs of a robust U.S. economy and a frothy stock market reduce the likelihood of further interest rate cuts by the Fed - barring a collapse in Brazil or some other global calamity. At the same time, no big upside move in rates is expected; money market returns will probably remain in the 4.5% to 5% range this year. WRIGHT U.S. GOVERNMENT NEAR TERM FUND The Wright U.S. Government Near-Term Fund (WNTB) had a total return of 0.4% in the fourth quarter of 1998, slightly better than the 0.3% return estimated for the Morningstar government near-term bond fund average but behind the 1.1% earned on 90-day T-bills for the quarter. Effective July 1, 1998, the WNTB began investing in U.S. government agency issues - in addition to its original mandate in Treasury securities. By December 31, with a widening in spreads over Treasury securities, agency issues grew to 28% of portfolio holdings. For all of 1998, the WNTB Fund earned a total return of 6.0%, as compared with 6.6% for the Morningstar average of government near-term bond funds and 4.9% for 90-day Treasury bills. The WNTB had an average duration of 1.8 years at year-end 1998, the same as one year earlier. The Fund's average yield to maturity was 4.8% at December 31, versus 5.6% 12 months earlier. WRIGHT U.S. TREASURY FUND The Wright U.S. Treasury Fund (WUSTB), which invests strictly in U.S. Treasury issues, had a 0.6% decline during the fourth quarter, as bond yields edged slightly higher over the final three months of 1998. Nevertheless, for the entire year, the WUSTB Fund earned a 10.0% total return as intermediate- and long-term Treasury bond yields declined roughly 90 basis points. WUSTB's 1998 results were significantly better than the 5.6% total return of the Lipper fixed-income fund average and about 50 basis points ahead of the 9.5% return indicated by the Lehman government/corporate bond average. Long-term Treasury bonds were the star sector of the U.S. bond market last year, benefiting as 1) investors spooked by the Asian/Russian/Brazilian crisis sought the safety of U.S. Treasuries and 2) long-term interest rates fell nearly one percentage point. Because of its above-benchmark duration (5.7 years versus 5.6 years for Lehman's government/corporate average), WUSTB Fund's fourth-quarter return trailed the market and the average bond fund slightly in the fourth quarter. The Fund's yield to maturity fell to 4.9% from 5.8% during 1998. WRIGHT TOTAL RETURN BOND FUND During 1998, a year of rising global financial tensions, the Wright Total Return Bond Fund (WTRB) benefited from the high-quality of its holdings: U.S. Treasury bonds (44% of assets at 12/31/98), high-grade corporates (32%), government agency issues (16%) and mortgage-backed securities (8%). The slightly longer-than-benchmark duration of holdings also aided 1998 performance, as bond yields fell. WTRB Fund had a 9.6% total return for the 12 months of 1998. During the fourth quarter, credit market pressures abated and yields edged higher, causing WTRB to lose 0.3%. For the full year, WTRB's 9.6% return edged out the 9.5% return for the Lehman government/corporate bond average and easily outdistanced the 5.6% return of the Lipper fixed-income fund composite. WTRB Fund's slight loss for the fourth quarter trailed the Lipper average fund return of 0.6% and the Lehman government/corporate index's 0.1% return. At year-end, the yield to maturity on the WTRB was 5.3%, down from 6.0% 12 months earlier. The Fund's average duration was 6.0 years, as compared with 6.2 years at December 31, 1997. WRIGHT CURRENT INCOME FUND The Wright Current Income Fund (WCIF) invests in Ginnie Mae securities (mortgage-based securities backed by the U.S. government). Standard and Institutional shares of the Fund had 0.5% and 0.7% returns, respectively, in the fourth quarter of 1998, bringing the full-year returns to 6.5% and 6.6%, respectively, for Standard and Institutional Shares; returns for the Morningstar government mortgage fund average were 0.3% and 6.3% for the same periods. Liquidity concerns and a rise in prepayment risk caused mortgage-backed issues to underperform Treasury bonds last year. In the fourth quarter, the reverse was true: Federal Reserve easing reduced liquidity concerns in the credit markets, causing mortgage spreads with Treasuries to narrow and leading to better-than-Treasury performance for mortgages. At year-end 1998, the WCIF Fund's average duration was estimated to be 3.9 years; the indicated annual yield for this fund was 6.4%. U.S. SECURITIES MARKETS ------------------------------------------------------- The Dow Jones Industrial Average chart shows the point changes in the average which consists of 30 major NYSE industrial companies and is a price-weighted arithmetic average, with the divisor adjusted for stock splits. The yield chart shows the basis point changes in the U.S. Treasury bond which is the benchmark U.S. Treasury bond with a maturity of 30 years. The following plotting points are used for comparison in the mountain charts. Date Dow Jones U.S. 30 Year Industrial Average Treasury Bond Yield 12/31/90 2633.66 8.25% 12/31/91 3168.83 7.40% 12/31/92 3301.11 7.40% 12/31/93 3754.09 6.35% 12/31/94 3834.44 7.88% 12/31/95 5117.12 5.95% 12/31/96 6448.27 6.64% 12/31/97 7908.25 5.92% 12/31/98 9181.43 5.09% - -------------------------------------------------------------------------------- IMPORTANT PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. The Total Investment Return is the percent 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. Lipper Growth Fund is an average of 1,139 equity growth funds. NYSE is the average of all the equities on the New York Stock Exchange. Value Line Stock Index is a broad equity index compiled by Value Line. FT World ex U.S. Index refers to the FT/S&P Actuaries World excluding the United States index of 1,679 equity securities compiled by The Financial Times Limited, Goldman, Sachs & Co., and Standard & Poor's in conjunction with the Institute of Actuaries & the Faculty of Actuaries. Lipper Fixed Income Funds is the average of 2,013 fixed income funds. Morningstar Government (1-5) is an average of 127 general government funds with average maturities of one to five years. The investment results of Funds with less than 10 years are shown from the first month-end since the Fund's inception for comparison with other averages. ------------------------------ WRIGHT MANAGED EQUITY TRUST WRIGHT SELECTED BLUE CHIP EQUITIES FUND Growth of $10,000 invested 12/31/88 through 12/31/98 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Selected Blue Chip Equities Fund 0.1% 14.7% 13.2% Lipper Growth Funds 22.9% 18.6% 16.3% NYSE 18.5% 20.9% 17.6% The cumulative total return of a U.S. $10,000 investment in the WRIGHT SELECTED BLUE CHIP EQUITIES FUND on 12/31/88 would have grown to $34,684 by December 31, 1998 The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Selected Lipper Equity NYSE Blue Chip Fund Growth Fund Index 12/31/88 $10,000 $10,000 $10,000 12/31/89 $12,457 $12,561 $12,928 12/31/90 $12,045 $11,868 $12,434 12/31/91 $16,380 $16,140 $16,344 12/31/92 $17,152 $17,395 $17,657 12/31/93 $17,506 $19,246 $19,604 12/31/94 $16,890 $18,833 $19,581 12/31/95 $22,013 $24,632 $26,410 12/31/96 $26,102 $29,368 $32,197 12/31/97 $34,637 $36,728 $42,777 12/31/98 $34,684 $45,124 $50,708 - ------------------------------------------------------------------------------- WRIGHT MANAGED EQUITY TRUST WRIGHT JUNIOR BLUE CHIP EQUITIES FUND Growth of $10,000 invested 12/31/88 through 12/31/98 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Junior Blue Chip Equitie Fund -4.9% 11.1% 10.3% Value Line Stock Index -1.0% 11.6% 10.2% NYSE 18.5% 20.9% 17.6% The cumulative total return of a U.S. $10,000 investment in the WRIGHT JUNIOR BLUE CHIP EQUITIES FUND on 12/31/88 would have grown to $26,652 by December 31, 1998. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Junior Value Line NYSE Blue Chip Fund Stock Index Index 12/31/88 $10,000 $10,000 $10,000 12/31/89 $11,561 $11,489 $12,928 12/31/90 $10,335 $9,081 $12,434 12/31/91 $14,157 $12,009 $16,344 12/31/92 $14,621 $13,330 $17,657 12/31/93 $15,780 $15,265 $19,604 12/31/94 $15,347 $14,870 $19,581 12/31/95 $18,495 $18,338 $26,410 12/31/96 $21,737 $21,462 $32,197 12/31/97 $28,024 $26,712 $42,777 12/31/98 $26,652 $26,428 $50,708 - -------------------------------------------------------------------------------- WRIGHT MANAGED EQUITY TRUST WRIGHT MAJOR BLUE CHIP EQUITIES FUND Growth of $10,000 invested 12/31/88 through 12/31/98 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright MAJOR BLUE CHIP Equities Fund 20.4% 19.4% 16.0% Lipper Growth Funds 22.9% 18.6% 16.3% NYSE 18.5% 20.9% 17.6% The cumulative total return of a U.S. $10,000 investment in the WRIGHT MAJOR BLUE CHIP EQUITIES FUND on 12/31/88 would have grown to $43,960 by December 31, 1998. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Major Blue Lipper Equity NYSE Chip Fund Growth Funds Index 12/31/88 $10,000 $10,000 $10,000 12/31/89 $12,302 $12,561 $12,928 12/31/90 $11,947 $11,868 $12,434 12/31/91 $16,594 $16,140 $16,344 12/31/92 $17,925 $17,395 $17,657 12/31/93 $18,104 $19,246 $19,604 12/31/94 $17,972 $18,833 $19,581 12/31/95 $23,182 $24,632 $26,410 12/31/96 $27,270 $29,368 $32,197 12/31/97 $36,504 $36,728 $42,777 12/31/98 $43,960 $45,124 $50,708 - -------------------------------------------------------------------------------- WRIGHT MANAGED EQUITY TRUST WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND - STANDARD SHARES Growth of $10,000 invested 9/30/89* through 12/31/98 Annual Total Return Lst 1 Yr Lst 5 Yrs Since Incept* Wright Int'l Blue Chip Equities Fund - Standard Shares 6.1% 7.8% 7.9% FT World Ex U.S. Index 16.2% 8.3% 5.0% The cumulative total return of a U.S. $10,000 investment in the WRIGHT INT'L BLUE CHIP EQUITIES FUND on 9/30/89 would have grown to $20,148 by December 31, 1998. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Int'l Blue Chip FT World Ex U.S. Equities Fund Index 09/30/89 $10,000 $10,000 12/31/89 $10,312 $10,490 12/31/90 $9,599 $8,064 12/31/91 $11,251 $9,138 12/31/92 $10,807 $7,944 12/31/93 $13,858 $10,507 12/31/94 $13,631 $11,386 12/31/95 $15,486 $12,575 12/31/96 $18,696 $13,393 12/31/97 $18,983 $13,500 12/31/98 $20,148 $15,682 - -------------------------------------------------------------------------------- WRIGHT MANAGED EQUITY TRUST WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND - INSTITUTIONAL SHARES Growth of $10,000 invested 7/31/97* through 12/31/98 Annual Total Return Lst 1 Yr Since Incept* Wright Int'l Blue Chip Equities Fund 7.5% 1.5% FT World Ex U.S. Index 16.2% 2.4% The cumulative total return of a U.S. $10,000 investment in the WRIGHT INT'L BLUE CHIP EQUITIES FUND on 7/31/97 would have grown to $10,211 by December 31, 1998. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Int'l Blue Chip FT World Ex U.S. Equities Fund Index 07/31/97 $10,000 $10,000 12/31/97 $9,495 $8,903 12/31/98 $10,211 $10,343 - -------------------------------------------------------------------------------- WRIGHT MANAGED INCOME TRUST WRIGHT U.S. GOVERNMENT NEAR TERM FUND Growth of $10,000 invested 12/31/88 through 12/31/98 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright U.S. Government Near Term Fund 6.0% 4.8% 7.0% Lehman Gov't/Corp Index 9.5% 7.3% 9.3% Morningstar Gov't(1-5 Yrs)Funds 6.3% 5.0% 6.9% The cumulative total return of a U.S. $10,000 investment in the WRIGHT U.S.GOVERNMENT NEAR TERM FUND on 12/31/88 would have grown to $19,753 by December 31, 1998. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright U.S. Government Lehman Gov't/Corp Morningstar Gov't Near Term Bond Fund Index (1-5 Yrs) Funds 12/31/88 $10,000 $10,000 $10,000 12/31/89 $11,117 $11,424 $11,080 12/31/90 $12,032 $12,370 $12,033 12/31/91 $13,606 $14,364 $13,610 12/31/92 $14,457 $15,453 $14,367 12/31/93 $15,607 $17,158 $15,246 12/31/94 $15,124 $16,556 $14,934 12/31/95 $16,929 $19,742 $16,635 12/31/96 $17,596 $20,315 $17,170 12/31/97 $18,639 $22,297 $18,325 12/31/98 $19,753 $24,410 $19,480 - -------------------------------------------------------------------------------- WRIGHT MANAGED INCOME TRUST WRIGHT U.S. TREASURY FUND Growth of $10,000 invested 12/31/88 through 12/31/98 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright U.S. Treasury Fund 10.0% 6.8% 9.6% Lehman Gov't/Corp Index 9.5% 7.3% 9.3% Lipper Fixed Income Fund 5.6% 6.0% 7.9% The cumulative total return of a U.S. $10,000 investment in the WRIGHT U.S. TREASURY FUND on 12/31/88 would have grown to $25,016 by December 31, 1998. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright U.S. Lehman Gov't/Corp Lipper Fixed Treasury Fund Index Income Funds 12/31/88 $10,000 $10,000 $10,000 12/31/89 $11,626 $11,424 $10,945 12/31/90 $12,362 $12,370 $11,409 12/31/91 $14,533 $14,364 $13,485 12/31/92 $15,560 $15,453 $14,541 12/31/93 $18,035 $17,158 $15,950 12/31/94 $16,480 $16,556 $15,431 12/31/95 $21,124 $19,742 $17,776 12/31/96 $20,857 $20,315 $18,610 12/31/97 $22,752 $22,297 $20,222 12/31/98 $25,016 $24,410 $21,357 - -------------------------------------------------------------------------------- WRIGHT MANAGED INCOME TRUST WRIGHT TOTAL RETURN BOND FUND Growth of $10,000 invested 12/31/88 through 12/31/98 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Total Return Bond Fund 9.6% 6.6% 8.5% Lehman Gov't/Corp Index 9.5% 7.3% 9.3% Lipper Fixed Income Funds 5.6% 6.0% 7.9% The cumulative total return of a U.S. $10,000 investment in the WRIGHT TOTAL RETURN BOND FUND on 12/31/88 would have grown to $22,591 by December 31, 1998. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Total Retun Lehman Gov't/Corp Lipper Fixed Bond Fund Index Income Funds 12/31/88 $10,000 $10,000 $10,000 12/31/89 $11,358 $11,424 $10,945 12/31/90 $11,959 $12,370 $11,409 12/31/91 $13,799 $14,364 $13,485 12/31/92 $14,782 $15,453 $14,541 12/31/93 $16,412 $17,158 $15,950 12/31/94 $15,337 $16,556 $15,431 12/31/95 $18,706 $19,742 $17,776 12/31/96 $18,874 $20,315 $18,610 12/31/97 $20,619 $22,297 $20,222 12/31/98 $22,591 $24,410 $21,357 - -------------------------------------------------------------------------------- WRIGHT MANAGED INCOME TRUST WRIGHT CURRENT INCOME FUND - STANDARD SHARES Growth of $10,000 invested 12/31/88 through 12/31/98 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Current Income Fund 6.5% 6.5% 8.5% Lehman Gov't/Corp Index 9.5% 7.3% 9.3% Lehman Mtg-Backed index 7.0% 7.2% 9.1% The cumulative total return of a U.S. $10,000 investment in the WRIGHT CURRENT INCOME BOND FUND on 12/31/88 would have grown to $22,549 by December 31, 1998. 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 12/31/88 $10,000 $10,000 $10,000 12/31/89 $11,415 $11,424 $11,535 12/31/90 $12,539 $12,370 $12,772 12/31/91 $14,459 $14,364 $14,779 12/31/92 $15,433 $15,453 $15,809 12/31/93 $16,450 $17,158 $16,890 12/31/94 $15,911 $16,556 $16,618 12/31/95 $18,689 $19,742 $19,411 12/31/96 $19,501 $20,315 $20,449 12/31/97 $21,171 $22,297 $22,390 12/31/98 $22,549 $24,410 $23,948 - -------------------------------------------------------------------------------- WRIGHT MANAGED INCOME TRUST WRIGHT CURRENT INCOME FUND - INSTITUTIONAL SHARES Growth of $10,000 invested 7/31/97* through 12/31/98 Annual Total Return Lst 1 Yr Since Incept* Wright Current Income Fund 6.6% 7.0% LehmanGov't/Corp Index 9.5% 9.3% LehmanMtg-Backed Index 7.0% 7.4% The cumulative total return of a U.S. $10,000 investment in the WRIGHT CURRENT INCOME BOND FUND on 7/31/97 would have grown to $11,000 by December 31, 1998. 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 07/31/97 $10,000 $10,000 $10,000 12/31/97 $10,323 $10,365 $10,342 12/31/98 $11,000 $11,347 $11,061 - -------------------------------------------------------------------------------- DIVIDEND DISTRIBUTIONS ================================================================================
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. 97 19.20 2.225 0.119303 370.80 7,119.36 32.70% 15.09% 15.44% 13.99% Jan.98 19.09 370.80 7,078.57 29.53% 15.23% 14.72% 13.86% Feb.98 20.49 370.80 7,597.69 36.01% 16.87% 14.79% 14.32% Mar.98 21.25 0.025 0.001172 371.23 7,888.64 45.10% 17.38% 15.22% 14.52% Apr.98 21.27 371.23 7,896.06 40.46% 18.22% 15.17% 14.44% May 98 20.40 371.23 7,573.09 25.99% 16.62% 14.77% 14.05% Jun.98 20.00 0.020 0.001009 371.60 7,432.00 19.76% 16.63% 13.86% 13.83% Jul.98 18.74 371.60 6,963.87 5.05% 15.46% 13.30% 13.27% Aug.98 15.68 371.60 5,826.76 -11.88% 10.74% 11.59% 11.92% Sep.98 16.14 0.020 0.001217 372.06 6,005.00 -12.81% 11.51% 11.50% 12.06% Oct.98 17.86 372.06 6,644.93 0.44% 13.42% 12.39% 12.72% Nov.98 18.46 372.06 6,868.17 0.06% 14.55% 13.03% 12.88% Dec.98 17.63 1.461 0.086861 404.37 7,129.11 0.14% 14.65% 13.24% 13.07% - ------------------------------------------------------------------------------------------------------------------------------- THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) 1/15/85 $10.00 100.00 $1,000.00 Dec. 97 10.48 0.880 0.085437 394.06 4,129.75 28.92% 13.90% 12.43% 11.57% Jan.98 10.46 394.06 4,121.87 26.68% 13.77% 12.21% 11.47% Feb.98 11.09 394.06 4,370.12 31.96% 15.21% 11.87% 11.90% Mar.98 11.32 394.06 4,460.76 37.33% 15.33% 11.69% 11.99% Apr.98 11.20 394.06 4,413.47 34.97% 15.88% 11.63% 11.82% May 98 10.84 394.06 4,271.61 20.23% 14.38% 11.49% 11.47% Jun.98 10.55 394.06 4,157.33 12.54% 14.24% 10.54% 11.17% Jul.98 9.76 394.06 3,846.00 -0.48% 12.38% 9.89% 10.46% Aug.98 8.13 394.06 3,203.68 -17.95% 7.55% 8.42% 8.92% Sep.98 8.68 394.06 3,420.42 -19.20% 8.71% 8.87% 9.39% Oct.98 9.09 394.06 3,581.98 -10.95% 9.45% 9.35% 9.69% Nov.98 9.72 394.06 3,830.24 -6.63% 11.42% 10.42% 10.16% Dec.98 9.92 0.045 0.004712 395.91 3,927.47 -4.90% 11.05% 10.30% 10.30% - -------------------------------------------------------------------------------------------------------------------------------- THE EQUITY TRUST -- WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC) 7/22/85 $10.00 100.00 $1,000.00 Dec. 97 12.02 1.955 0.165818 474.68 5,705.65 33.86% 15.29% 15.59% 15.02% Jan.98 12.09 474.68 5,738.88 30.15% 15.66% 15.17% 14.97% Feb.98 13.05 474.68 6,194.57 37.91% 17.53% 15.29% 15.57% Mar.98 13.56 0.015 0.001107 475.20 6,443.71 48.63% 18.20% 15.78% 15.81% Apr.98 13.65 475.20 6,486.48 42.17% 19.17% 15.91% 15.76% May 98 13.44 475.20 6,386.69 30.57% 18.22% 15.80% 15.51% Jun.98 13.66 0.010 0.000740 475.55 6,496.01 27.01% 19.08% 15.36% 15.56% Jul.98 12.96 475.55 6,163.17 10.89% 18.37% 14.96% 14.99% Aug.98 11.30 475.55 5,373.75 -0.10% 14.47% 13.74% 13.69% Sep.98 11.67 0.010 0.000840 475.95 5,554.37 -1.72% 15.37% 13.66% 13.88% Oct.98 12.89 475.95 6,135.03 13.89% 17.14% 14.61% 14.64% Nov.98 13.82 475.95 6,577.67 17.06% 18.97% 15.73% 15.14% Dec.98 13.67 0.730 0.056068 502.64 6,871.06 20.43% 19.41% 15.96% 15.42% - ------------------------------------------------------------------------------------------------------------------------------- THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) Standard Shares 9/14/89 $10.00 100.00 $1,000.00 Dec. 97 16.02 0.370 0.023359 120.04 1,923.04 1.53% 11.93% -- 8.20% Jan.98 16.00 120.04 1,920.64 3.46% 11.94% -- 8.10% Feb.98 17.11 120.04 2,053.88 9.10% 12.88% -- 8.88% Mar.98 17.84 0.064 0.003563 120.46 2,149.01 15.01% 12.88% -- 9.37% Apr.98 17.92 120.46 2,158.64 16.40% 12.21% -- 9.33% May 98 17.89 120.46 2,155.03 11.48% 11.94% -- 9.22% Jun.98 17.41 120.46 2,097.21 4.01% 12.07% -- 8.79% Jul.98 17.44 120.46 2,100.91 3.71% 11.89% -- 8.72% Aug.98 14.75 120.46 1,776.86 -6.32% 6.77% -- 6.63% Sep.98 14.50 120.46 1,746.74 -13.52% 6.50% -- 6.36% Oct.98 15.58 120.46 1,876.84 -0.37% 7.17% -- 7.14% Nov.98 16.30 120.46 1,963.58 3.72% 8.75% -- 7.60% Dec.98 16.02 0.882 0.057609 127.40 2,041.02 6.14% 7.77% -- 7.98% - ------------------------------------------------------------------------------------------------------------------------------- THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) Institutional Shares 7/07/97 $10.00 100.00 $1,000.00 Dec. 97 9.13 0.230 0.025471 102.55 936.28 -- -- -- -6.37%* Jan.98 9.12 102.55 935.26 -- -- -- -6.48%* Feb.98 9.76 102.55 1,000.89 -- -- -- 0.09%* Mar.98 10.15 0.064 0.006262 103.19 1,047.38 -- -- -- 4.74%* Apr.98 10.20 103.19 1,052.54 -- -- -- 5.25%* May 98 10.18 103.19 1,050.47 -- -- -- 5.05%* Jun.98 10.01 103.19 1,032.93 -- -- -- 3.29%* Jul.98 10.03 103.19 1,034.99 4.97% -- -- 3.27% Aug.98 8.49 103.19 876.08 -5.08% -- -- -10.84% Sep.98 8.34 103.19 860.60 -12.45% -- -- -11.45% Oct.98 8.96 103.19 924.58 0.83% -- -- -5.77% Nov.98 9.39 103.19 968.95 5.09% -- -- -2.23% Dec.98 8.75 0.962 0.115072 115.06 1,006.80 7.54% -- -- 0.46% - --------------------------------------------------------------------------------------------------------------------------------- *: Investment return from the inception, July 7, 1997 to December 31, 1998.
THE INCOME TRUST -- WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) 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 $0.004047616 1,004.05 4.77% -- 4.77% Feb. 28 0.003642645 1,007.71 4.75% -- 4.77% Mar. 31 0.004043263 1,011.78 4.76% 4.78% 4.78% Apr. 30 0.003915946 1,015.74 4.76% 4.78% 4.79% May 31 0.003968376 1,019.77 4.67% 4.75% 4.78% Jun. 30 0.003829436 1,023.68 4.66% 4.72% 4.77% Jul. 31 0.003982139 1,027.75 4.69% 4.69% 4.78% Aug. 31 0.004005105 1,031.87 4.72% 4.71% 4.79% Sep. 30 0.003845250 1,035.84 4.68% 4.71% 4.79% Oct. 31 0.003851714 1,039.83 4.54% 4.66% 4.78% Nov. 30 0.003552664 1,043.52 4.32% 4.53% 4.76% Dec. 31 0.003607565 1,047.29 4.25% 4.38% 4.73% ---------- Total $0.046291719 (a): Assumes reinvestment of monthly dividends.
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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. GOVERNMENT NEAR TERM FUND (WNTB) 7/25/83 $10.00 100.000 $1,000.00 12/97 10.24 0.049720 0.004855 298.090 3,052.44 5.93% 5.21% 7.02% 8.04% 1/98 10.29 0.048983 0.004760 299.509 3,081.95 6.53% 5.01% 6.88% 8.06% 2/98 10.24 0.043842 0.004281 300.792 3,080.11 6.20% 4.68% 6.76% 8.01% 3/98 10.23 0.049929 0.004881 302.260 3,092.12 6.83% 4.67% 6.84% 7.99% 4/98 10.22 0.047809 0.004678 303.674 3,103.55 6.40% 4.59% 6.90% 7.97% 5/98 10.22 0.048178 0.004714 305.105 3,118.17 6.33% 4.75% 6.99% 7.96% 6/98 10.22 0.047654 0.004663 306.528 3,132.72 6.11% 4.54% 6.90% 7.95% 7/98 10.21 0.047539 0.004656 307.955 3,144.22 5.35% 4.58% 6.95% 7.93% 8/98 10.28 0.047393 0.004610 309.375 3,180.37 6.56% 4.49% 7.07% 7.96% 9/98 10.37 0.046253 0.004460 310.755 3,222.53 7.23% 4.67% 7.05% 8.01% 10/98 10.35 0.047165 0.004557 312.171 3,230.97 6.77% 4.71% 6.97% 7.98% 11/98 10.29 0.045655 0.004437 313.556 3,226.49 6.42% 4.83% 7.01% 7.93% 12/98 10.27 0.046913 0.004568 314.988 3,234.93 5.98% 4.82% 7.04% 7.90% --------- Total $0.567311 - -------------------------------------------------------------------------------------------------------------------------------- THE INCOME TRUST -- WRIGHT U.S. TREASURY FUND (WUSTB) 7/25/83 $10.00 100.000 $1,000.00 12/97 13.95 0.055733 0.003995 299.136 4,172.95 9.09% 7.90% 9.37% 10.40% 1/98 14.13 0.059985 0.004245 300.389 4,244.50 10.94% 7.64% 9.02% 10.47% 2/98 14.00 0.054531 0.003895 301.559 4,221.83 10.46% 6.87% 8.83% 10.37% 3/98 13.96 0.064041 0.004587 302.943 4,229.08 12.30% 6.85% 9.14% 10.32% 4/98 13.95 0.062491 0.004480 304.300 4,224.98 10.50% 6.81% 9.31% 10.29% 5/98 14.02 0.063987 0.004564 305.689 4,285.76 11.23% 6.94% 9.58% 10.30% 6/98 14.12 0.062635 0.004436 307.045 4,335.48 11.19% 6.34% 9.33% 10.32% 7/98 14.07 0.064776 0.004604 308.458 4,340.01 7.85% 6.07% 9.53% 10.27% 8/98 14.43 0.064394 0.004462 309.835 4,470.91 12.67% 5.90% 9.81% 10.42% 9/98 14.84 0.059087 0.003982 311.068 4,616.25 14.45% 6.49% 9.80% 10.60% 10/98 14.72 0.061282 0.004163 312.363 4,597.99 11.78% 6.29% 9.52% 10.51% 11/98 14.60 0.061014 0.004179 313.669 4,579.56 10.98% 6.76% 9.66% 10.42% 12/98 14.40 0.227935 0.015710 318.612 4,588.01 9.95% 6.76% 9.60% 10.37% --------- Total $0.906157 - ---------------------------------------------------------------------------------------------------------------------------------- THE INCOME TRUST -- WRIGHT TOTAL RETURN BOND FUND (WTRB) 7/25/83 $10.00 100.000 $1,000.00 12/97 12.93 0.059800 0.004625 296.133 3,829.00 9.25% 6.88% 8.26% 9.75% 1/98 13.09 0.059616 0.004554 297.481 3,894.03 11.11% 6.72% 7.98% 9.81% 2/98 12.98 0.055921 0.004308 298.763 3,877.94 10.80% 6.15% 7.81% 9.73% 3/98 12.92 0.092246 0.007140 300.897 3,887.59 12.73% 6.11% 8.02% 9.69% 4/98 12.91 0.057672 0.004467 302.241 3,901.94 11.35% 6.03% 8.17% 9.66% 5/98 12.98 0.058086 0.004475 303.594 3,940.65 11.48% 6.28% 8.40% 9.67% 6/98 13.05 0.058115 0.004453 304.946 3,979.55 11.35% 5.98% 8.22% 9.69% 7/98 13.01 0.058174 0.004471 306.310 3,985.09 7.88% 5.95% 8.27% 9.64% 8/98 13.24 0.057956 0.004377 307.650 4,073.29 11.86% 5.89% 8.50% 9.75% 9/98 13.62 0.056848 0.004174 308.934 4,207.69 13.68% 6.43% 8.56% 9.93% 10/98 13.44 0.056668 0.004216 310.237 4,169.59 10.40% 6.18% 8.31% 9.80% 11/98 13.43 0.055648 0.004144 311.523 4,183.75 10.45% 6.61% 8.51% 9.77% 12/98 13.31 0.157365 0.011750 315.193 4,195.22 9.56% 6.81% 8.60% 9.80% --------- Total $0.824314 - --------------------------------------------------------------------------------------------------------------------------------- THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF) - Standard Shares 4/14/87 $10.00 100.000 $1,000.00 12/97 10.63 0.055488 0.005220 225.288 2,394.81 8.56% 6.53% 8.69% 8.49% 1/98 10.68 0.054913 0.005142 226.447 2,418.45 9.03% 6.36% 8.36% 8.52% 2/98 10.64 0.055137 0.005182 227.620 2,421.88 8.74% 6.20% 8.23% 8.47% 3/98 10.62 0.053992 0.005084 228.777 2,429.61 10.48% 6.16% 8.38% 8.43% 4/98 10.63 0.053803 0.005061 229.935 2,444.21 9.50% 6.20% 8.49% 8.43% 5/98 10.66 0.053611 0.005029 231.092 2,463.44 9.28% 6.25% 8.66% 8.44% 6/98 10.64 0.053848 0.005061 232.261 2,471.26 8.31% 6.10% 8.42% 8.40% 7/98 10.63 0.054029 0.005083 233.442 2,481.49 6.86% 6.03% 8.48% 8.38% 8/98 10.67 0.053670 0.005030 234.616 2,503.35 8.15% 6.18% 8.55% 8.40% 9/98 10.77 0.053078 0.004928 235.772 2,539.27 8.20% 6.50% 8.46% 8.47% 10/98 10.68 0.052771 0.004941 236.937 2,530.49 6.77% 6.37% 8.17% 8.37% 11/98 10.68 0.052800 0.004944 238.109 2,543.00 7.15% 6.60% 8.38% 8.36% 12/98 10.66 0.052419 0.004917 239.279 2,550.72 6.51% 6.51% 8.47% 8.32% --------- Total $0.644072 - ------------------------------------------------------------------------------------------------------------------------------- THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCII) - Institutional Shares 7/07/97 $10.00 100.000 $1,000.00 12/97 10.12 0.055263 0.005461 103.163 1,044.01 -- -- -- 4.40%* 1/98 10.16 0.053890 0.005304 103.710 1,053.69 -- -- -- 5.37%* 2/98 10.12 0.053892 0.005325 104.263 1,055.14 -- -- -- 5.51%* 3/98 10.10 0.052574 0.005205 104.805 1,058.53 -- -- -- 5.85%* 4/98 10.11 0.052364 0.005179 105.348 1,065.07 -- -- -- 6.51%* 5/98 10.14 0.052252 0.005153 105.891 1,073.73 -- -- -- 7.37%* 6/98 10.11 0.052439 0.005187 106.440 1,076.11 -- -- -- 7.61%* 7/98 10.11 0.050428 0.004988 106.971 1,081.48 6.93% -- -- 7.61% 8/98 10.14 0.050075 0.004938 107.500 1,090.05 8.17% -- -- 7.77% 9/98 10.23 0.051852 0.005069 108.044 1,105.29 8.24% -- -- 8.45% 10/98 10.15 0.051016 0.005026 108.587 1,102.16 6.83% -- -- 7.65% 11/98 10.16 0.047916 0.004716 109.100 1,108.45 7.18% -- -- 7.62% 12/98 10.15 0.046702 0.004601 109.602 1,112.46 6.56% -- -- 7.43% --------- Total $0.615400 - ---------------------------------------------------------------------------------------------------------------------------------
*: Investment return from the inception, July 7, 1997 to December 31, 1998. WRIGHT MANAGED EQUITY TRUST STATEMENTS OF ASSETS AND LIABILITIES December 31, 1998 ================================================================================
Wright Selected Wright Junior Wright Major Blue Chip Blue Chip Blue Chip Equities Fund Equities Fund Equities Fund+ (WBC) (WJBC) (WMBC) - ------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments - Identified cost............................... $ - $ - $ 40,072,657 Unrealized appreciation....................... - - 11,936,165 Investments in Portfolio, at value (identified cost, $166,043,284 and $32,872,866, respectively, for WBC and WJBC)........................... 221,656,678 34,303,476 - ------------ ------------ ------------ Total investments, at value (Note 1A)......... $221,656,678 $ 34,303,476 $ 52,008,822 Cash.......................................... - - 2,161 Receivable for Fund shares sold............... 162,774 456,610 - Dividend and interest receivable.............. - - 36,853 Receivable for investments sold............... - - 235,555 ------------ ------------ ------------ Total Assets............................. $221,819,452 $ 34,760,086 $ 52,283,391 ------------ ------------ ------------ LIABILITIES: Payable for Fund shares reacquired............ $ 840,945 $ 236,541 $ 77,391 Payable for investments purchased............. - - 1,315,522 Distributions payable......................... 672 655 98 Accrued expenses and other liabilities........ 13,268 6,231 7,254 Distribution fee payable...................... - - 4,660 ------------ ------------ ------------ Total Liabilities......................... $ 854,885 $ 243,427 $ 1,404,925 ------------ ------------ ------------ NET ASSETS....................................... $220,964,567 $ 34,516,659 $ 50,878,466 ============= ============= ============= 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........................ $164,794,078 $ 33,455,919 $ 39,172,057 Accumulated undistributed net realized gain (loss) on investments and foreign currency (computed on the basis of identified cost)............ (367,285) - (17,271) Unrealized appreciation of investments and trans- lation of assets and liabilities in foreign currency (computed on the basis of identified cost).. 55,613,394 1,430,610 11,936,165 Undistributed (distributions in excess of) net investment income........................... 924,380 (369,870) (212,485) ------------ ------------ ------------ Net assets applicable to outstanding shares. $220,964,567 $ 34,516,659 $ 50,878,466 ============= ============= ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING................................. 12,530,224 3,479,162 3,722,975 ============= ============= ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST...................... $17.63 $9.92 $13.67 ============= ============= ============= + The Wright Major Blue Chip Equities Fund does not invest in a corresponding master portfolio.
See notes to financial statements WRIGHT MANAGED EQUITY TRUST STATEMENT OF ASSETS AND LIABILITIES December 31, 1998 ================================================================================
Wright International Blue Chip Equities Fund (WIBC) - ------------------------------------------------------------------------------------------------------------------ ASSETS: Investments - Investment in Portfolio, at value (identified cost, $170,439,308) (Note 1A) $212,230,531 Receivable for Fund shares sold..................................... 63,423 ------------ Total Assets.................................................... $ 212,293,954 ------------ LIABILITIES: Payable for Fund shares reacquired.................................. $ 436,465 Distributions payable............................................... 2,970 Accrued expenses and other liabilities.............................. 17,184 ------------ Total Liabilities............................................... $ 456,619 ------------ NET ASSETS............................................................. $ 211,837,335 ============== 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.............................................. $ 168,374,534 Accumulated undistributed net realized gain on investments and foreign currency (computed on the basis of identified cost).................................. 2,433,435 Unrealized appreciation of investments and trans- lation of assets and liabilities in foreign currency (computed on the basis of identified cost)........................ 41,732,186 Distributions in excess of net investment income.................... (702,820) ------------ Net assets applicable to outstanding shares....................... $ 211,837,335 ============= Computation of net asset value, offering and redemption price per share: Standard shares: Net assets...................................................... $ 193,326,527 ============= Shares of beneficial interest outstanding....................... 12,065,386 ============= Net asset value, offering price, and redemption price per share of beneficial interest........................................ $ 16.02 ============= Institutional shares: Net assets...................................................... $ 18,510,808 ============= Shares of beneficial interest outstanding....................... 2,114,771 ============= Net asset value, offering price, and redemption price per share of beneficial interest........................................ $ 8.75 =============
See notes to financial statements WRIGHT MANAGED EQUITY TRUST STATEMENTS OF OPERATIONS For the Year Ended December 31, 1998 ================================================================================
Wright Selected Wright Junior Wright Major Wright International Blue Chip Blue Chip Blue Chip Blue Chip Equities Fund Equities Fund Equities Fund+ Equities Fund (WBC) (WJBC) (WMBC) (WIBC) - ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1C): Income - Dividend income................................. $ - $ - $ 440,609 $ - Interest income................................. - - 57,243 - Dividend income allocated from Portfolio........ 3,749,260 382,152 - 4,533,826 Interest income allocated from Portfolio........ 215,554 33,792 - 554,817 Less: Foreign taxes from Portfolio.............. - - - (503,355) Expenses allocated from Portfolio............... (1,953,126) (305,797) - (2,599,737) ------------ ------------ ------------ ------------ Investment income.............................. $ 2,011,688 $ 110,147 $ 497,852 $ 1,985,551 ------------ ------------ ------------ ------------ Expenses - Investment Adviser fee (Note 2)................. $ - $ - $ 145,057 $ - Administrator fee (Note 2)...................... 56,229 12,131 70,463 56,746 Compensation of Trustees not affiliated with the Investment Adviser or Administrator............ 4,535 4,375 4,158 3,647 Custodian fee (Note 1D) - Standard shares (Note 1D) 27,656 13,751 41,821 24,287 Custodian fee (Note 1D) - Institutional shares (Note 1D) - - - 10,251 Distribution expenses-Standard shares (Note 3).. 630,542 86,523 80,578 540,793 Transfer and dividend disbursing agent fees-Standard shares.......................... 75,177 12,336 6,832 75,640 Transfer and dividend disbursing agent fees-Institutional shares..................... - - - 9,455 Printing........................................ 426 9,012 5,613 2,864 Audit services.................................. 12,900 13,300 30,600 12,900 Legal services.................................. 3,751 2,584 3,751 3,751 Registration costs - Standard shares............ 27,012 20,800 16,585 22,705 Registration costs - Institutional shares....... - - - 6,780 Miscellaneous................................... 6,296 4,094 7,235 4,435 ------------ ------------ ------------ ------------ Total expenses................................. $ 844,524 $ 178,906 $ 412,693 $ 774,254 ------------ ------------ ------------ ------------ Deduct - Reduction of distribution expenses by Principal Underwriter (Note 3) ........................... $ - $ 86,523 $ 68,917 $ - Reduction of Custodian fee (Note 1D)............ - - 5,354 - ------------ ------------ ------------ ------------ Total deductions............................... $ - $ 86,523 $ 74,271 $ - ------------ ------------ ------------ ------------ Net expenses................................. $ 844,524 $ 92,383 $ 338,422 $ 774,254 ------------ ------------ ------------ ------------ Net investment income...................... $ 1,167,164 $ 17,764 $ 159,430 $ 1,211,297 ------------ ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment and foreign currency transactions (identified cost basis)............ $ - $ - $ 2,790,260 $ - Net realized gain on investment and foreign currency transactions from Portfolio (identified cost basis) 15,538,125 154,875 - 20,726,523 ------------ ------------ ------------ ------------ Net realized gain on investments................. $ 15,538,125 $ 154,875 $ 2,790,260 $ 20,726,523 ------------ ------------ ------------ ------------ Change in unrealized appreciation (depreciation of investments and translation of assets and liabilities in foreign currencies............. $ - $ - $ 5,697,987 $ - Change in unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currencies from Portfolio (20,336,710) (2,056,707) - (11,296,007) ------------ ------------ ------------ ------------ Net change in unrealized appreciation (depreciation) of investments................... $(20,336,710) $ (2,056,707) $ 5,697,987 $ (11,296,007) ------------ ------------ ------------ ------------ Net realized and unrealized gain (loss) on investments.................................... $ (4,798,585) $ (1,901,832) $ 8,488,247 $ 9,430,516 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets from operations..................................... $ (3,631,421) $ (1,884,068) $ 8,647,677 $ 10,641,813 ============= ============= ============= ============= + The Wright Major Blue Chip Equities Fund does not invest in a corresponding master portfolio.
See notes to financial statements WRIGHT MANAGED EQUITY TRUST STATEMENTS OF CHANGES IN NET ASSETS ================================================================================
Wright Selected Wright Junior Blue Chip Blue Chip Equities Fund Equities Fund (WBC) (WJBC) Year Ended Dec. 31 Year Ended Dec. 31 ------------------------------------------------------------------- 1998 1997 1998 1997 - --------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income.................................. $ 1,167,164 $ 1,731,669 $ 17,764 $ 63,900 Net realized gain on investments....................... 15,538,125 27,879,423 154,875 2,787,813 Change in unrealized appreciation (depreciation) of investments....................................... (20,336,710) 35,733,719 (2,056,707) 547,419 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... $ (3,631,421) $ 65,344,811 $ (1,884,068) $ 3,399,132 ------------ ------------ ------------ ------------ Undistributed net investment income included in price of shares sold and redeemed (Note 1F)............ $ (14) $ (21,080) $ - $ - ------------ ------------ ------------ ------------ Distributions to shareholders (Note 1G) - From net investment income............................. $ (1,166,044) $ (1,728,176) $ - $ (56,986) From net realized gain................................. (16,414,262) (43,658,676) (157,251) (2,548,114) In excess of net realized gain......................... (845,717) - - - ------------ ------------ ------------ ------------ Total distributions.................................. $(18,426,023) $ (45,386,852) $ (157,251) $ (2,605,100) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets from Fund share transactions (Note 4)............................ $(16,388,843) $ 31,308,408 $ 3,068,243 $ 18,667,002 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................... $(38,446,301) $ 51,245,287 $ 1,026,924 $ 19,461,034 NET ASSETS: At beginning of year..................................... 259,410,868 208,165,581 33,489,734 14,028,700 ------------ ------------ ------------ ------------ At end of year........................................... $220,964,567 $ 259,410,868 $ 34,516,658 $ 33,489,734 ============= ============= ============= ============= UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD.................................. $ 924,380 $ 927,887 $ (369,870) $ (385,258) ============= ============= ============= =============
See notes to financial statements WRIGHT MANAGED EQUITY TRUST STATEMENTS OF CHANGES IN NET ASSETS ================================================================================
Wright Major Wright International Blue Chip Blue Chip Equities Fund+ Equities Fund (WMBC) (WIBC) Year Ended Dec. 31 Year Ended Dec. 31 ----------------------------------------------------------- 1998 1997 1998 1997 - ----------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income.................................. $ 159,430 $ 175,793 $ 1,211,297 $ 2,163,882 Net realized gain on investments....................... 2,790,260 5,086,262 20,726,523 15,148,710 Change in unrealized appreciation (depreciation) of investments....................................... 5,697,987 2,093,990 (11,296,007) (12,233,865) ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations......................... $ 8,647,677 $ 7,356,045 $ 10,641,813 $ 5,078,727 ------------ ------------ ------------ ------------ Undistributed net investment income included in price of shares sold and redeemed (Note 1F)............ $ - $ - $ - $ 202,446 ------------ ------------ ------------ ------------ Distributions to shareholders (Note 1G) - From net investment income - Standard shares........... $ (147,022) $ (164,977) $ (827,510) $ (2,203,743) From net investment income - Institutional Shares...... - - (284,480) - From net realized gain - Standard shares............... (2,286,379) (7,725,348) (10,461,145) (11,765,818) From net realized gain - Institutional shares.......... - - (1,854,640) (1,107,228) ------------ ------------ ------------ ------------ Total distributions.................................. $ (2,433,401) $ (7,890,325) $(13,427,775) $(15,076,789) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets from fund share transactions (Note 4) - Standard shares...................................... $ 16,943,444 $ 2,439,911 $(18,251,870) $(50,302,381) Institutional shares................................. - - (24,916,881) 49,157,706 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets from Fund share transactions........................................... $ 16,943,444 $ 2,439,911 $(43,168,751) $ (1,144,675) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................... $ 23,157,720 $ 1,905,631 $(45,954,713) $(10,940,291) NET ASSETS: At beginning of year..................................... 27,720,746 25,815,115 257,792,048 268,732,339 ------------ ------------ ------------ ------------ At end of year........................................... $ 50,878,466 $ 27,720,746 $211,837,335 $257,792,048 ============= ============= ============= ============= DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD.................. $ (212,485) $ (195,049) $ (702,820) $ (2,065,144) ============= ============= ============= ============= + The Wright Major Blue Chip Equities Fund does not invest in a corresponding master portfolio.
See notes to financial statements WRIGHT MANAGED EQUITY TRUST WRIGHT SELECTED BLUE CHIP EQUITIES FUND ================================================================================
Year Ended December 31, ------------------------------------------------------------------ FINANCIAL HIGHLIGHTS 1998 1997 1996 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 19.200 $ 17.730 $ 16.830 $ 13.850 $ 14.920 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income.................. $ 0.095 $ 0.133 $ 0.204 $ 0.226 $ 0.233 Net realized and unrealized gain (loss) on investments....................... (0.139) 5.172 2.886 3.904 (0.763) -------- -------- -------- -------- -------- Total income (loss) from investment operations....... $ (0.044) $ 5.305 $ 3.090 $ 4.130 $ (0.530) -------- -------- -------- -------- -------- Less Distributions: From net investment income............. $ (0.090) $ (0.145) $ (0.200) $ (0.200) $ (0.180) From net realized gain on investments.. (1.366) (3.690) (1.990) (0.840) (0.360) In excess of net realized gain on investments....................... (0.070) - - (0.110) - -------- -------- -------- -------- -------- Total distributions................ $ (1.526) $ (3.835) $ (2.190) $ (1.150) $ (0.540) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 17.630 $ 19.200 $ 17.730 $ 16.830 $ 13.850 ========= ========= ========= ========= ========= Total Return (1)............................ 0.14% 32.70% 18.57% 30.34% (3.52%) Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $ 220,965 $ 259,411 $ 208,166 $217,588 $186,016 Ratio of expenses to average net assets 1.11%(3) 1.08%(3) 1.04% 1.04% 1.03% Ratio of net investment income to average net assets........................... 0.46% 0.75% 1.15% 1.44% 1.57% Portfolio turnover rate(2) ............ - 10% 43% 44% 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 reinvestment date. (2) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly in securities. The portfolio turnover rate for the period since the Fund transferred substantially all of its investable assets to the Portfolio is shown in the Portfolio's financial statements which are included elsewhere in this report. (3) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
See notes to financial statements WRIGHT MANAGED EQUITY TRUST WRIGHT JUNIOR BLUE CHIP EQUITIES FUND ================================================================================
Year Ended December 31, ------------------------------------------------------------------ FINANCIAL HIGHLIGHTS 1998 1997 1996 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of year.......... $ 10.480 $ 8.860 $ 10.850 $ 11.000 $ 11.950 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income (loss) (1)....... $ 0.015 $ 0.160 $ 0.067 $ 0.120 $ 0.101 Net realized and unrealized gain (loss) on investments....................... (0.530) 2.380 1.738 1.977 (0.431) -------- -------- -------- -------- -------- Total income (loss) from investment operations....... $ (0.515) $ 2.540 $ 1.805 $ 2.097 $ (0.330) -------- -------- -------- -------- -------- Less Distributions: From net investment income............. $ - $ (0.035) $ (0.100) $ (0.100) $ (0.100) From net realized gain on investments.. (0.045) (0.885) (3.695) (1.030) (0.520) In excess of net realized gain on investments....................... - - - (1.117) - -------- -------- -------- -------- -------- Total distributions................ $ (0.045) $ (0.920) $ (3.795) $ (2.247) $ (0.620) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 9.920 $ 10.480 $ 8.860 $ 10.850 $ 11.000 ========= ========= ========= ========= ========= Total Return(3)............................. (4.90%) 28.92% 17.53% 20.51% (2.75%) Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $ 34,517 $ 33,490 $ 14,029 $ 25,993 $ 37,124 Ratio of expenses to average net assets(1) 1.17%(2)(5) 1.18%(2)(5) 1.20%(2) 1.17%(2) 1.11% Ratio of net investment income to average net assets(1) ............... 0.05% 0.35% 0.73% 0.89% 0.91% Portfolio turnover rate(4) ............ - 25% 41% 40% 36% (1)For the years ended December 31, 1998, 1997, 1996 and 1995, the Investment Adviser and/or the Principal Underwriter reduced their fees. Had such actions not been undertaken, net investment income (loss) per share and the ratios would have been as follows: 1998 1997 1996 1995 - ----------------------------------------------------------------------------------------------------------------------- Net investment income (loss) per share. $ (0.066) $ (0.041) $ 0.048 $ 0.105 ========= ========= ========= ========= Ratios (As a percentage of average net assets): Expenses........................... 1.44%(5) 1.62%(5) 1.41% 1.28% ========= ========= ========= ========= Net investment income (loss)....... (0.22%) (0.09%) 0.52% 0.78% ========= ========= ========= ========= (2) Custodian fees were reduced by credits resulting from cash balances the Trust maintained with the custodian (Note 1D). The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, 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 1.15%, 1.14%, 1.15% and 1.14% for the years ended December 31, 1998, 1997, 1996 and 1995, respectively. (3) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the reinvestment date. (4) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly in securities. The portfolio turnover rate for the period since the Fund transferred substantially all of its investable assets to the Portfolio is shown in the Portfolio's financial statements which are included elsewhere in this report. (5) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
See notes to financial statements WRIGHT MANAGED EQUITY TRUST WRIGHT MAJOR BLUE CHIP EQUITIES FUND ================================================================================
Year Ended December 31, --------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1998 1997 1996 1995 1994 - ---------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 12.020 $ 12.450 $ 12.650 $ 11.390 $ 12.720 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income(1)............... $ 0.091 $ 0.100 $ 0.064 $ 0.153 $ 0.180 Net realized and unrealized gain (loss) on investments....................... 2.324 3.515 2.131 3.107 (0.295) -------- -------- -------- -------- -------- Total income (loss) from investment operations....... $ 2.415 $ 3.615 $ 2.195 $ 3.260 $ (0.115) -------- -------- -------- -------- -------- Less Distributions: From net investment income............. $ (0.055) $ (0.085) $ (0.120) $ (0.160) $ (0.160) From net realized gain on investments.. (0.710) (3.960) (2.275) (1.840) (1.055) -------- -------- -------- -------- -------- Total distributions................ $ (0.765) $ (4.045) $ (2.395) $ (2.000) $ (1.215) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 13.670 $ 12.020 $ 12.450 $ 12.650 $ 11.390 ========= ========= ========= ========= ========= Total Return(3)............................. 20.43% 33.86% 17.63% 28.98% (0.70%) Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $ 50,878 $ 27,721 $ 25,815 $ 49,134 $ 51,085 Ratio of expenses to average net assets(1) 1.07%(2 1.08%(2) 1.08%(2) 1.07%(2) 0.99% Ratio of net investment income to average net assets(1)...................... 0.49% 0.68% 0.90% 1.19% 1.46% Portfolio turnover rate................ 36% 89% 45% 83% 55% (1)For the years ended December 31, 1998, 1997, 1996 and 1995, the Principal Underwriter and/or Investment Adviser reduced their fees. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1998 1997 1996 1995 ---------- --------- --------- -------- Net investment income per share........ $ 0.052 $ 0.049 $ 0.061 $ 0.150 ========= ========= ========= ========= Ratios (As a percentage of average net assets): Expenses........................... 1.28% 1.43% 1.12% 1.09% ========= ========= ========= ========= Net investment income.............. 0.28% 0.33% 0.86% 1.17% ========= ========= ========= ========= (2) Custodian fees were reduced by credits resulting from cash balances the Trust maintained with the custodian (Note 1D). The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, 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% for the years ended December 31, 1998, 1997, 1996 and 1995. (3) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the reinvestment date.
See notes to financial statements WRIGHT MANAGED EQUITY TRUST WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND ================================================================================
Year Ended December 31, ----------------------------- FINANCIAL HIGHLIGHTS 1998 1998 - ------------------------------------------------------------------------------------------------------ Institutional Standard Shares Shares Net asset value, beginning of year.......... $ 9.130 $ 16.020 -------- -------- Income from Investment Operations: Net investment income ................. $ 0.159 $ 0.078 Net realized and unrealized gain on investments..................... 0.487 0.868 -------- -------- Total income from investment operations..... $ 0.646 $ 0.946 -------- -------- Less Distributions: From net investment income............. $ (0.150) $ (0.070) From net realized gain................. (0.876) (0.876) -------- -------- Total distribution................. $ (1.026) $ (0.946) -------- -------- Net asset value, end of year................ $ 8.750 $ 16.020 ========= ========= Total Return(1)............................. 7.54% 6.14% Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $ 18,511 $ 193,327 Ratio of expenses to average daily net assets............................. 1.12%(2) 1.35%(2) Ratio of net investment income to average daily net assets................... 0.73% 0.42% (1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the reinvestment date. (2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
See notes to financial statements WRIGHT MANAGED EQUITY TRUST WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND - continued ================================================================================
Year Ended December 31, --------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1997* 1997 1996 1995 1994 - --------------------------------------------------------------------------------------------------------------------------- Institutional Shares Standard Shares ------------- ----------------------------------------------- Net asset value, beginning of year.......... $ 10.000 $16.690 $14.770 $13.090 $13.410 --------- --------- --------- --------- --------- Income (loss) from Investment Operations: Net investment income ................. $ 0.006 $ 0.185 $ 0.128 $ 0.142 $ 0.127 Net realized and unrealized gain (loss) on investments..................... (0.646)+ 0.048+ 2.902 1.638 (0.347) --------- --------- --------- --------- --------- Total income (loss) from investment operations.... $ (0.640) $ 0.233 $ 3.030 $ 1.780 $ (0.220) --------- --------- --------- --------- --------- Less Distributions: From net investment income............. $ - $ (0.163) $ (0.100) $ (0.100) $ (0.100) From net realized gains................ (0.230) (0.740) (1.010) - - --------- --------- --------- --------- --------- Total distributions................ $ (0.230) $ (0.903) $ (1.110) $ (0.100) $ (0.100) --------- --------- --------- --------- --------- Net asset value, end of year................ $ 9.130 $16.020 $ 16.690 $ 14.770 $ 13.090 ========== ========== ========== ========== ========== Total Return(1)............................. (6.37%) 1.54% 20.73% 13.61% (1.64%) Ratios/Supplemental Data Net assets, end of year (000 omitted).. $ 45,094 $212,698 $268,732 $237,176 $200,232 Ratio of expenses to average daily net assets............................. 1.16%(3)++ 1.31%(3) 1.30% 1.29% 1.31% Ratio of net investment income to average daily net assets................... 0.15%++ 0.82% 0.82% 0.99% 1.00% Portfolio turnover rate(2) ............ 4% 4% 29% 12% 12% (1)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the reinvestment date. (2) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly in securities. The portfolio turnover rate for the period since the Fund transferred substantially all of its investable assets to the Portfolio is shown in the Portfolio's financial statements which are included elsewhere in this report. (3) Includes each Fund's share of its corresponding Portfolio's allocated expenses. + Per share amount is not in accordance with the net realized and unrealized gain (loss) for the period because of the timing of sales of Fund shares and the amounts per share realized and unrealized gains and losses at such times. ++ Annualized. * For the period from July 7, 1997 (inception of offering Institutional shares) to December 31, 1997.
See notes to financial statements 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 Major Blue Chip Equities Fund (WMBC) series, and Wright International Blue Chip Equities Fund (WIBC) series (collectively, the Funds), is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end, management investment company. WBC, WJBC, and WIBC invest all of their investable assets in interests in a separate corresponding open-end management investment company (a Portfolio), a New York Trust, having the same investment objective as its corresponding Fund. WBC invests its assets in the Selected Blue Chip Equities Portfolio, WJBC invests its assets in the Junior Blue Chip Equities Portfolio, and WIBC invests its assets in the International Blue Chip Equities Portfolio. The value of each Fund's investment in its corresponding Portfolio reflects the Fund's proportionate interest in the net assets of that Portfolio (99.9%, 99.9%, and 99.9% at December 31, 1998 for WBC, WJBC, and WIBC, respectively). The performance of each Fund is directly affected by the performance of its corresponding Portfolio. The financial statements of each Portfolio, including the portfolio of investments, are included elsewhere in this report and should be read in conjunction with each Fund's financial statements. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A. Investment Valuations - For WMBC securities listed on securities exchanges or in the NASDAQ National Market are valued at closing sale prices, if those prices are deemed to be representative of market values at the close of business. Unlisted or listed securities for which closing sale prices are not available are valued at the mean between the latest bid and asked prices. Short-term obligations maturing in sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are unavailable or deemed not to be representative of market values at the close of business are appraised at their fair value as determined in good faith by or at the direction of the Trustees. Valuation of securities by WBC, WJBC and WIBC are discussed in Note 1A of the Portfolios' Notes to Financial Statements which are included elsewhere in this report. B. Foreign Currency Translation - Investment security valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses are translated into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions. C. Income - For WMBC, dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is recorded on the accrual basis. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. The net investment income of WBC, WJBC, and WIBC consists of the Fund's pro rata share of the net investment income of its corresponding Portfolio, less all actual and accrued expenses of each Fund determined in accordance with generally accepted accounting principles. D. Expense Reduction - The Funds have entered into an arrangement with its custodian whereby interest earned on uninvested cash balances is used to offset custodian fees. All significant reductions are reported as a reduction of expenses in the Statement of Operations. E. Federal Taxes - The Trust's policy is to comply with the provisions of the Internal Revenue Code (the Code) available to regulated investment companies and distribute to shareholders each year all of its taxable income, including any net realized gain on investments. Accordingly, no provision for federal income or excise tax is necessary. Withholding taxes on foreign dividends have been provided for in accordance with the Trust's understanding of the applicable country's tax rules and rates. F. 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. G. 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 year ended December 31,1998, the following amounts were reclassified due to differences between book and tax accounting created primarily by the deferral of certain losses for tax purposes and character reclassifications between net investment income and net realized capital gains. Accumulated Undistrib- uted Net Realized Gain (Loss) on Investment Undistributed Paid-In and Foreign Currency Net Investment Capital Transactions Income (Loss) - ------------------------------------------------------------------------------- WBC $(473,819) $ 478,432 $ (4,613) WJBC 248,944 (246,568) (2,376) WMBC 968,959 (939,115) (29,844) WIBC 5,878,062 (7,141,079) 1,263,017 Net investment income, net realized gains (losses) and net assets were not affected by these reclassifications. H. Other - Investment transactions are accounted for on the date the investments are purchased or sold. I. 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. J. Multiple Classes of Shares of Beneficial Interest - Each Fund is authorized to offer a standard share class and an institutional share class. The share classes differ in their respective distribution and service fees. All shareholders bear the common expenses of the Fund pro rata based on the average daily net assets of each class, without distinction between share classes. Dividends are declared separately for each class. Each class has equal rights as to voting, redemption, dividends, and liquidation. At December 31, 1998, only WIBC had an institutional share class. (2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES The Trust has engaged The Winthrop Corporation (Winthrop) to act as investment adviser to the Funds pursuant to the respective Investment Advisory Contracts. Pursuant to a service agreement between Winthrop and its wholly-owned subsidiary, Wright Investors' Service, Inc. (Wright), Wright furnishes each Fund with investment management, investment advisory, and other services. For its services, Wright is compensated based upon a percentage of average daily net assets which rate is adjusted as average daily net assets exceed certain levels. For the year ended December 31,1998, for WMBC the effective annual rate was 0.45%. The Portfolios have engaged Wright to render investment advisory services. See Note 2 of the Portfolios' Notes to Financial Statements which are included elsewhere in this report. 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, 1998, the effective annual rate was 0.02% for WBC, 0.04% for WJBC, 0.22% for WMBC, and 0.02% for WIBC. Certain of the Trustees and officers of the Trust are Trustees or officers of the above organizations. Except as to Trustees of the Trust who are not 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 wholly-owned subsidiary of Winthrop, an annual rate of 0.25% of each Fund's average daily net assets for activities primarily intended to result in the sale of each Fund's Standard shares. To enhance the net income of WJBC and WMBC, the Principal Underwriter made a reduction of its fee by $86,523 and $68,917, respectively. In addition, the Trustees have adopted a service plan (the Service Plan) which allows the funds to reimburse the Principal Underwriter for payments to intermediaries for providing account administration and account maintenance services to their customers who are beneficial owners of shares. The amount of service fee payable under the Service Plan with respect to each class of shares may not exceed 0.25% annually of the average daily net assets attributable to the respective classes. For the year ended December 31, 1998 the Funds did not accrue or pay any service fees. (4) SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in Fund shares were as follows:
Year Ended Year Ended December 31, 1998 December 31, 1997 --------------------------------------------------- Shares Amount Shares Amount - -------------------------------------------------------------------------------------------------------------------------- Wright Selected Blue Chip Equities Fund -- Sold .............................................. 2,109,096 $ 40,389,405 2,295,567 $ 43,143,360 Issued to shareholders in payment of distributions declared............................... 877,643 14,839,357 2,057,801 36,966,100 Reacquired............................................. (3,967,641) (71,617,605) (2,586,053) (48,801,052) ---------- ------------- ---------- ------------- Net increase (decrease).............................. (980,902) $ (16,388,843) 1,767,315 $ 31,308,408 =========== =============== =========== =============== Wright Junior Blue Chip Equities Fund -- Sold................................................... 1,024,797 $ 10,421,975 2,059,302 $ 22,967,370 Issued to shareholders in payment of distributions declared............................... 12,811 122,269 202,275 2,080,022 Reacquired............................................. (753,849) (7,476,001) (649,566) (6,380,390) ---------- ------------- ---------- ------------- Net increase......................................... 283,759 $ 3,068,243 1,612,011 $ 18,667,002 =========== =============== =========== =============== Wright Major Blue Chip Equities Fund -- Sold.................................................. 2,262,400 $ 27,942,197 432,179 $ 5,533,181 Issued to shareholders in payment of distributions declared................................ 171,868 2,268,398 648,550 7,400,696 Reacquired............................................. (1,017,149) (13,267,151) (847,964) (10,493,966) ---------- ------------- ---------- ------------- Net increase......................................... 1,417,119 $ 16,943,444 232,765 $ 2,439,911 =========== =============== =========== =============== Wright International Blue Chip Equities Fund -- Standard Shares: Sold................................................... 6,595,651 $ 110,930,477 6,878,669 $ 113,256,683 Issued to shareholders in payment of distributions declared............................... 566,574 8,776,474 726,800 11,458,067 Reacquired............................................. (8,370,704) (137,958,821) (10,434,522) (175,017,131) ---------- ------------- ---------- ------------- Net decrease......................................... (1,208,479) $ (18,251,870) (2,829,053) $ (50,302,381) =========== =============== =========== ===============
Year Ended Year Ended December 31, 1998 December 31, 1997 ------------------------------------------------------- Shares Amount Shares Amount - ---------------------------------------------------------------------------------------------------------------------------------- Period from July 7, 1997, the Inception of Offering Institutional Shares, to December 31, 1997 Wright International Blue Chip Equities Fund -- Institutional Shares: ---------------------------------------- Sold................................................... - $ - 4,814,034 $ 48,051,228 Issued to shareholders in payment of distributions declared............................................. 249,025 2,139,120 122,616 1,107,228 Reacquired............................................. (3,070,822) (27,056,001) (82) (750) ---------- ------------- ---------- ------------- Net increase (decrease)................................ (2,821,797) $ (24,916,881) 4,936,568 $ 49,157,706 =========== =============== =========== ===============
(5) INVESTMENT TRANSACTIONS Purchases and sales of investments, other than U.S. Government securities and short-term obligations were as follows: Year Ended December 31,1998 Wright Major Blue Chip Equities Fund - ----------------------------------------------------------------------------- Purchases....................... $ 33,490,829 ============= Sales........................... $ 19,212,473 ============= - ----------------------------------------------------------------------------- Increases and decreases in each Fund's investment in its corresponding Portfolio for the year ended December 31, 1998 were as follows: WBC WJBC WIBC - ------------------------------------------------------------------------------- Increases..... $ 40,294,485 $10,001,530 $110,766,485 Decreases..... (75,343,029) (7,395,707) (166,998,630) - ------------------------------------------------------------------------------- (6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) of the investment securities owned at December 31, 1998, as computed on a federal income tax basis, are as follows: Wright Major Blue Chip Equities Fund - ------------------------------------------------------------------------------ Aggregate cost.......................... $ 40,089,927 ============= Gross unrealized appreciation........... $ 12,094,880 Gross unrealized depreciation........... (175,985) ------------- Net unrealized appreciation............. $ 11,918,895 ============= (7) LINE OF CREDIT The Funds participate with other funds managed by Wright in a committed $20 million unsecured line of credit agreement with a bank. The Funds may temporarily borrow from the line of credit to satisfy redemption requests or settle investment transactions. Interest is charged to each Fund based on its borrowings at an amount above the federal funds rate. In addition, a fee computed at an annual rate of 0.10% on the average daily unused portion of the $20 million line of credit, is allocated among the participating Funds at the end of each quarter. The Funds did not have significant borrowings or allocated fees during the year ended December 31, 1998. (8) SUBSEQUENT EVENT Effective January 1, 1999, Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain have adopted the Euro as its common currency. Existing national currencies of these countries will be sub-currencies of the Euro until July 1, 2002, when the old currencies disappear entirely. The conversion to Euro impacts only the Wright International Blue Chip Equities Fund and there is no financial statement implication as of December 31, 1998. 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 portfolio of investments of Wright Major Blue Chip Equities Fund, of The Wright Managed Equity Trust (the Trust) (comprising, respectively, of Wright Selected Blue Chip Equities Fund, Wright Junior Blue Chip Equities Fund, Wright Major Blue Chip Equities Fund, and Wright International Blue Chip Equities Fund) as of December 31, 1998, the related statements of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1998 and 1997, and the financial highlights for each of the years in the five-year period ended December 31, 1998. 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, 1998, by correspondence with the custodian and brokers; where replieswere not received from brokers, we performed other auditing procedures. 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 Funds of The Wright Managed Equity Trust as of December 31, 1998, 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 January 29, 1999 WRIGHT MANAGED INCOME TRUST STATEMENTS OF ASSETS AND LIABILITIES December 31, 1998 ================================================================================
Wright Wright Wright U.S. Treasury U.S. Government U.S. Treasury Money Market Fund+ Near Term Fund Fund (WTMM) (WNTB) (WUSTB) - --------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments - Amortized cost.................................. $ 91,246,306 $ - $ - Investments in Portfolio, at value (identified cost of $90,640,832 and $62,258,422 for WNTB and WUSTB, respectively) ................ - 92,199,965 67,329,641 ------------ ------------ ------------ Total investments, at value (Note 1A)............. $ 91,246,306 $ 92,199,965 $ 67,329,641 Cash.............................................. 3,348 - - Receivable for Fund shares sold................... 177,884 102,272 33,997 ------------- ------------ ------------ Total Assets.................................. $ 91,427,538 $ 92,302,237 $ 67,363,638 ------------- ------------ ------------ LIABILITIES: Payable for Fund shares reacquired................ $ 23,016 $ 184,602 $ 6,994 Distributions payable............................. 54,137 184,917 91,857 Accrued management fees........................... 6,540 - - Accrued expenses and other liabilities............ 20,853 11,174 8,429 ------------- ------------ ------------ Total Liabilities............................. $ 104,546 $ 380,693 $ 107,280 ------------- ------------ ------------ NET ASSETS........................................... $ 91,322,992 $ 91,921,544 $ 67,256,358 ============== ============== ============== 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............................ $ 91,322,992 $105,354,342 $ 61,962,317 Accumulated net realized gain (loss) on investments (computed on the basis of identified cost)...... - (14,989,198) 222,822 Unrealized appreciation of investments (computed on the basis of identified cost)...... - 1,559,133 5,071,219 Distributions in excess of net investment income.. - (2,733) - ------------- ------------ ------------ Net assets applicable to outstanding shares..... $ 91,322,992 $ 91,921,544 $ 67,256,358 ============== ============== ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING......... 91,322,992 8,946,956 4,671,354 ============== ============== ============== NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST.......................... $1.00 $10.27 $14.40 ============== ============== ============== + The Wright U.S. Treasury Money Market Fund does not invest in a corresponding master portfolio. The amortized cost of securities held at December 31, 1998 is the same as the market value.
See notes to financial statements WRIGHT MANAGED INCOME TRUST STATEMENTS OF ASSETS AND LIABILITIES December 31, 1998 ================================================================================
Wright Wright Total Return Current Income Bond Fund+ Fund (WTRB) (WCIF) - -------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments - Identified cost................................. $109,135,836 $ - Unrealized appreciation......................... 5,398,425 - Investment in Portfolio, at value (identified cost of $111,564,176 for WCIF)..................... - 113,706,741 ------------ ------------ Total investments at value (Note 1A).............. $114,534,261 $113,706,741 Cash.............................................. 4,178 - Receivable for Fund shares sold................... 156,414 62,315 Interest receivable............................... 1,556,539 - ------------ ------------ Total Assets.................................. $116,251,392 $113,769,056 ------------ ------------ LIABILITIES: Payable for Fund shares reacquired................ $ 186,702 $ 105,679 Distributions payable............................. 114,391 161,875 Accrued expenses and other liabilities............ 12,949 8,749 ------------ ------------ Total Liabilities............................. $ 314,042 $ 276,303 ------------ ------------ NET ASSETS........................................... $115,937,350 $113,492,753 ============= ============= 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 $110,549,840 $112,634,632 Accumulated undistributed net realized gain (loss) on investments (computed on the basis of identified cost) (581) (1,053,609) Unrealized appreciation of investments (computed on the basis of identified cost)...... 5,398,425 2,142,565 Distributions in excess of net investment income............................... (10,334) (230,835) ------------ ------------ Net assets applicable to outstanding shares..... $115,937,350 $113,492,753 ============= ============= Computation of net asset value, offering and redemption price per share: Standard Shares: Net assets...................................... $115,937,350 $ 90,261,516 ============= ============= Shares of beneficial interest outstanding....... 8,707,706 8,466,035 ============= ============= Net asset value, offering price, and redemption price per share of beneficial interest.............. $13.31 $10.66 ============= ============= Institutional Shares: Net assets...................................... $ 23,231,237 ============= Shares of beneficial interest outstanding....... 2,289,544 ============= Net asset value, offering price, and redemption price per share of beneficial interest.............. $10.15 ============= + The Wright Total Return Bond Fund does not invest in a corresponding master portfolio.
See notes to financial statements WRIGHT MANAGED INCOME TRUST STATEMENTS OF OPERATIONS For the Year Ended December 31, 1998 ================================================================================
Wright Wright Wright U.S. Treasury U.S. Government U.S. Treasury Money Market Fund+ Near Term Fund Fund (WTMM) (WNTB) (WUSTB) - ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Income - Interest income................................... $ 4,769,733 $ - $ - Interest income allocated from Portfolio.......... - 6,293,373 4,312,872 Expenses allocated from Portfolio................. - (568,580) (385,901) ------------ ------------ ------------ Investment income................................ $ 4,769,733 $ 5,724,793 $ 3,926,971 ------------ ------------ ------------ Expenses - Investment Adviser fee (Note 3)................... $ 329,520 $ - $ - Administrator fee (Note 3)........................ 65,724 26,620 19,333 Compensation of Trustees not affiliated with the Investment Adviser or Administrator.............. 3,935 3,437 3,437 Custodian fee (Note 1C)........................... 45,290 13,875 5,500 Distribution expenses (Note 4).................... - 251,751 180,464 Transfer and dividend disbursing agent fees....... 57,471 43,036 21,441 Printing.......................................... 2,868 731 2,502 Audit services.................................... 30,040 12,660 12,660 Legal services.................................... 7,621 2,940 2,940 Registration costs................................ 15,835 20,952 17,270 Miscellaneous..................................... 18,682 377 10,002 ------------ ------------ ------------ Total expenses................................... $ 576,986 $ 376,379 $ 275,549 ------------ ------------ ------------ Deduct - Reduction of Investment Adviser fee (Note 3)...... $ 154,396 $ - $ - Reduction of distribution expenses by Principal Underwriter (Note 4)................... - 32,942 11,245 ------------ ------------ ------------ Total deductions................................ $ 154,396 $ 32,942 $ 11,245 ------------ ------------ ------------ Net expenses.................................... $ 422,590 $ 343,437 $ 264,304 ------------ ------------ ------------ Net investment income.......................... $ 4,347,143 $ 5,381,356 $ 3,662,667 ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investment transactions from Portfolio (identified cost basis)................. $ - $ (45,687) $ 984,728 Net change in unrealized appreciation of investments.................................... - 580,238 2,386,702 ------------ ------------ ------------ Net realized and unrealized gain (loss) on investments.................................. $ - $ 534,551 $ 3,371,430 ------------ ------------ ------------ Net increase in net assets from operations....... $ 4,347,143 $ 5,915,907 $ 7,034,097 ============= ============= ============= + The Wright U.S. Treasury Money Market Fund does not invest in a corresponding master portfolio.
See notes to financial statements WRIGHT MANAGED INCOME TRUST STATEMENTS OF OPERATIONS For the Year Ended December 31, 1998 ================================================================================
Wright Wright Total Return Current Income Bond Fund+ Fund (WTRB) (WCIF) - ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Income - Interest income................................... $ 5,730,454 $ - Interest income allocated from Portfolio.......... - 7,361,461 Expenses allocated from Portfolio................. - (603,848) ------------ ------------ Investment income................................ $ 5,730,454 $ 6,757,613 ------------ ------------ Expenses - Investment Adviser fee (Note 3)................... $ 377,910 $ - Administrator fee (Note 3)........................ 92,690 27,077 Compensation of Trustees not affiliated with the Investment Adviser or Administrator.............. 3,135 3,773 Custodian fee - Standard shares (Note 1C)......... 25,442 11,365 Custodian fee - Institutional shares (Note 1C).... - 9,151 Distribution expenses - Standard shares (Note 4).. 234,993 209,645 Transfer and dividend disbursing agent fees - Standard shares................................ 53,830 27,460 Transfer and dividend disbursing agent fees - Institutional shares........................... - 6,732 Printing.......................................... 2,045 1,024 Audit services.................................... 32,900 16,100 Legal services.................................... 2,452 1,914 Registration costs - Standard shares.............. 10,495 13,752 Registration costs - Institutional shares......... - 8,008 Miscellaneous..................................... 9,187 3,391 ------------ ------------ Total expenses................................... $ 845,079 $ 339,392 Deduct - Reduction of distribution expenses by Principal Underwriter - Standard shares (Note 4). $ - $ 18,135 ------------ ------------ Net expenses.................................... $ 845,079 321,257 ------------ ------------ Net investment income.......................... $ 4,885,375 $ 6,436,356 ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)........................... $ 839,997 $ - Net realized loss on investment transactions from Portfolio (identified cost basis)............ - (142,545) ------------ ------------ Net realized gain (loss) on investments........... $ 839,997 $ (142,545) ------------ ------------ Change in unrealized appreciation of investments... $ 2,803,169 $ - Change in unrealized appreciation of investments from Portfolio......................................... - 406,744 ------------ ------------ Net change in unrealized appreciation of investments $ 2,803,169 $ 406,744 ------------ ------------ Net realized and unrealized gain on investments... $ 3,643,166 $ 264,199 ------------ ------------ Net increase in net assets from operations....... $ 8,528,541 $ 6,700,555 ============= ============= + The Wright Total Return Bond Fund does not invest in a corresponding master portfolio.
See notes to financial statements WRIGHT MANAGED INCOME TRUST STATEMENTS OF CHANGES IN NET ASSETS ================================================================================
Wright Wright Wright U.S. Treasury U.S. Government U.S. Treasury Money Market Fund Near Term Fund Fund (WTMM) (WNTB) (WUSTB) Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31 -------------------------------------------------------------------------------------- 1998 1997 1998 1997 1998 1997 - -------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income........$ 4,347,143 $ 4,485,565 $ 5,381,356 $ 6,722,207 $ 3,662,667 $ 3,378,249 Net realized gain (loss) on investment transactions..... - - (45,687) (189,969) 984,728 (10,016) Change in unrealized appreciation (depreciation) of investments - - 580,238 (21,256) 2,386,702 2,443,170 ------------ ------------ ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations.................$ 4,347,143 $ 4,485,565 $ 5,915,907 $ 6,510,982 $ 7,034,097 $ 5,811,403 ------------ ------------ ------------ ------------ ------------ ------------ Distributions to shareholders (Note 2) - From net investment income...$ (4,347,143) $ (4,485,565) $ (5,565,401) $ (6,658,751) $ (3,755,230) $ (3,277,052) From net realized gain....... - - - - (751,891) (438,333) In excess of realized gains.. - - - - - (22,651) ------------ ------------ ------------ ------------ ------------ ------------ Total distributions.........$ (4,347,143) $ (4,485,565) $ (5,565,401) $ (6,658,751) $ (4,507,121) $ (3,738,036) ------------ ------------ ------------ ------------ ------------ ------------ Fund share transactions (Note 5)+ - Proceeds from shares sold....$269,270,734 $227,054,512 $ 16,447,345 $ 19,532,312 $ 18,684,432 $ 26,166,981 Reinvestment of dividends.... 2,616,748 2,684,765 3,163,303 3,583,844 3,313,736 1,808,793 Cost of shares reacquired....(267,623,266) (237,864,010) (30,604,406) (50,728,625) (31,426,843) (10,869,033) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets from Fund share transactions.................$ 4,264,216 $ (8,124,733) $(10,993,758) $ (27,612,469) $ (9,428,675) $ 17,106,741 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.............$ 4,264,216 $ (8,124,733) $(10,643,252) $ (27,760,238) $ (6,901,699) $ 19,180,108 NET ASSETS: At beginning of year.......... 87,058,776 95,183,509 102,564,796 130,325,034 74,158,057 54,977,949 ------------ ------------ ------------ ------------ ------------ ------------ At end of year................$ 91,322,992 $ 87,058,776 $ 91,921,544 $ 102,564,796 $ 67,256,358 $ 74,158,057 ============= ============= ============= ============= ============= ============= UNDISTRIBUTED(DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF YEAR.................$ - $ - $ (2,733) $ 228,999 $ - $ 105,524 ============= ============= ============= ============= ============= ============= + For WTMM, the Fund share transactions are at a net asset value of $1.00 per share.
See notes to financial statements WRIGHT MANAGED INCOME TRUST STATEMENTS OF CHANGES IN NET ASSETS ================================================================================
Wright Wright Total Return Current Income Bond Fund Fund (WTRB) (WCIF) Year Ended Dec. 31 Year Ended Dec. 31 ------------------------------------------------------------ 1998 1997 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income........ $ 4,885,375 $ 4,482,734 $ 6,436,356 $ 5,415,858 Net realized gain (loss) on investment transactions..... 839,997 208,959 (142,545) (98,264) Change in unrealized appreciation of investments.............. 2,803,169 2,451,993 406,744 2,131,195 ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations................. $ 8,528,541 $ 7,143,686 $ 6,700,555 $ 7,448,789 ------------ ------------ ------------ ------------ Distributions to shareholders (Note 2) - From net investment income - Standard shares............. $ (4,935,698) $ (4,473,380) $ (5,063,570) $ (4,764,576) Institutional shares........ - - (1,363,651) (615,830) In excess of net investment income - Standard shares............. - - (4,167) - From net realized gain - Standard shares............. (1,048,957) - - - In excess of realized gains - Standard shares............. (6,717) - - - ------------ ------------ ------------ ------------ Total distributions......... $ (5,991,372) $ (4,473,380) $ (6,431,388) $ (5,380,406) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets from Fund share transactions (Note 5) - Standard shares............. $ 33,396,518 $ (14,048,274) $ 13,841,664 $ 9,750,500 Institutional shares........ - - 1,363,651 21,576,017 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets from Fund share transactions $ 33,396,518 $ (14,048,274) $ 15,205,315 $ 31,326,517 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets............. $ 35,933,687 $ (11,377,968) $ 15,474,482 $ 33,394,900 NET ASSETS: At beginning of year.......... 80,003,663 91,381,631 98,018,271 64,623,371 ------------ ------------ ------------ ------------ At end of year................ $115,937,350 $ 80,003,663 $113,492,753 $ 98,018,271 ============= ============= ============= ============= UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF YEAR........ $ (10,334) $ 84,842 $ (230,835) $ (100,084) ============= ============= ============= =============
See notes to financial statements WRIGHT MANAGED INCOME TRUST WRIGHT U.S. TREASURY MONEY MARKET FUND ================================================================================
Year Ended December 31, ----------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1998 1997 1996 1995 1994 - ----------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year............. $1.00 $1.00 $1.00 $1.00 $1.00 Income from Investment Operations: Net investment income(1) .................. 0.0460 0.04739 0.04745 0.05212 0.03494 Less Distributions: From net investment income.................. (0.0460) (0.04739) (0.04745) (0.05212) (0.03494) -------- --------- -------- ---------- ---------- Net asset value, end of year................... $1.00 $1.00 $1.00 $1.00 $1.00 ========= ========= ========= ========= ========= Total Return(2)................................ 4.73% 4.84% 4.85% 5.34% 3.55% Ratios/Supplemental Data: Net assets, end of year (000 omitted)....... $91,323 $87,059 $95,184 $45,889 $68,877 Ratio of net expenses to average daily net assets(1)............................. 0.45% 0.45% 0.45%(3) 0.46%(3) 0.45% Ratio of net investment income to average daily net assets(1)............................. 4.61% 4.74% 4.73% 5.22% 3.77% (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, --------------------------------------------------------------------- 1998 1997 1996 1995 1994 - -------------------------------------------------------------------------------------------------------------------------------- Net investment income per share................ $ 0.04440 $0.04599 $0.04524 $0.05120 $0.03253 ========= ========= ========= ========= ========= Ratios (As a percentage of average daily net assets): Expenses.................................... 0.61% 0.59% 0.67% 0.65% 0.71% ========= ========= ========= ========= ========= Net investment income ...................... 4.45% 4.60% 4.51% 5.03% 3.51% ========= ========= ========= ========= ========= (2)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date. (3)Custodian fees were reduced by credits resulting from cash balances the Fund maintained with the custodian (Note 1C). The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, 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 0.44% and 0.45% for the years ended December 31, 1996 and 1995, respectively.
See notes to financial statements WRIGHT MANAGED INCOME TRUST WRIGHT U.S. GOVERNMENT NEAR TERM FUND ================================================================================
Year Ended December 31, ---------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1998 1997 1996 1995 1994 - ----------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 10.240 $ 10.240 $ 10.450 $ 9.920 $ 10.840 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income(1) ................ $ 0.549 $ 0.599 $ 0.606 $ 0.631 $ 0.588 Net realized and unrealized gain (loss) on investments......................... 0.048+ (0.010) (0.212) 0.524 (0.920) -------- -------- -------- -------- -------- Total income (loss) from investment operations........................... $ 0.597 $ 0.589 $ 0.394 $ 1.155 $ (0.332) -------- -------- -------- -------- -------- Less distributions from net investment income $ (0.567) $ (0.589) $ (0.604) $ (0.625) $ (0.588) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 10.270 $ 10.240 $ 10.240 $ 10.450 $ 9.920 ========= ========= ========= ========= ======== Total Return(2)............................. 5.98% 5.93% 3.91% 11.93% (3.10%) Ratios/Supplemental Data: Net assets, end of year (000 omitted).... $ 91,922 $102,565 $ 130,325 $ 143,600 $212,122 Ratio of expenses to average net assets.. 0.88%(4) 0.87%(4) 0.80% 0.80% 0.70% Ratio of expenses after custodian fee reduction to average net assets(5) .... 0.87%(4) - - - - Ratio of net investment income to average net assets............................. 5.38% 5.82% 5.90% 6.20% 5.70% Portfolio Turnover Rate(3) .............. - 4% 28% 21% 33% (1)During the years ended December 31, 1998 and 1997, the operating expenses of the fund were reduced by an allocation of expenses to the Investment Adviser or a reduction in distribution fees, or a combination, thereof. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1998 1997 ----------------------------- Net investment income per share........ $ 0.546 $ 0.597 ========= ========= Ratios (As a percentage of average net assets): Expenses........................... 0.91%(4) 0.89%(4) ========= ========= Expenses after custodian fee reduction 0.90%(4) - ========= ========= Net investment income.............. 5.35% 5.80% ========= ========= (2) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date. (3) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly in securities. The portfolio turnover rate for the period since the Fund transferred substantially all of its investable assets to the Portfolio is shown in the Portfolio's financial statements which are included elsewhere in this report. (4) Includes each Fund's share of its corresponding Portfolio's allocated expenses. (5) Custodian fees were reduced by credits resulting from cash balances the Fund maintained with the Custodian (Note 1C). The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, in accordance with reporting regulations in effect beginning in 1995. + Per share amount is not in accordance with the net realized and unrealized gain (loss) for the period because of the timing of sales of fund shares and the amounts per share of realized and unrealized gains and losses at such times.
See notes to financial statements WRIGHT MANAGED INCOME TRUST WRIGHT U.S. TREASURY FUND ================================================================================
Year Ended December 31, ----------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1998 1997 1996(3) 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of year.......... $ 13.950 $ 13.580 $ 14.710 $ 12.250 $ 14.360 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income(1)................. $ 0.724 $ 0.721 $ 0.769 $ 0.880 $ 0.880 Net realized and unrealized gain (loss) on investments......................... 0.632 0.462 (0.973) 2.458 (2.110) -------- -------- -------- -------- -------- Total income (loss) from investment operations........... $ 1.356 $ 1.183 $ (0.204) $ 3.338 $ (1.230) -------- -------- -------- -------- -------- Less Distributions: From net investment income............... $ (0.741) $ (0.703) $ (0.756) $ (0.878) $ (0.880) From net realized gain................... (0.165) (0.110) (0.170) - - -------- -------- -------- -------- -------- Total distributions.................... $ (0.906) $ (0.813) $ (0.926) $ (0.878) $ (0.880) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 14.400 $ 13.950 $ 13.580 $ 14.710 $ 12.250 ========= ========= ========= ========= ========= Total Return(2)............................. 9.95% 9.09% (1.23%) 28.18% (8.66%) Ratios/Supplemental Data: Net assets, end of year (000 omitted).... $ 67,256 $ 74,158 $ 54,978 $ 15,156 $ 16,658 Ratio of net expenses to average net assets 0.94%(5) 1.01%(5) 0.90% 0.90% 0.90% Ratio of net expenses after custodian fee reduction to average net assets(6)..... 0.90%(5) 0.87%(5) - - - Ratio of net investment income to average net assets............................. 5.09% 5.34% 5.50% 6.60% 6.90% Portfolio Turnover Rate(4) .............. - 1% 65% 8% 1% (1)During each of the five years ended December 31, 1998, the operating expenses of the Fund were reduced by an allocation of expenses to the Investment Adviser or a reduction in distribution fees by the Principal Underwriter, 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, ------------------------------------------------------------------ 1998 1997 1996 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------ Net investment income per share............. $ 0.721 $ 0.720 $ 0.769 $ 0.827 $ 0.854 ========= ========= ========= ========= ========= Ratios (As a percentage of average net assets): Expenses .............................. 0.96%(5) 1.02%(5) 0.90% 1.20% 1.10% ========= ========= ========= ========= ========= Expenses after custodian fee reduction... 0.92%(5) 0.89%(5) - - - ========= ========= ========= ========= ========= Net investment income.................... 5.07% 5.33% 5.50% 6.20% 6.70% ========= ========= ========= ========= ========= (2)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date. (3) Certain of the per share data are based on average shares outstanding. (4) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly in securities. The portfolio turnover rate for the period since the Fund transferred substantially all of its investable assets to the Portfolio is shown in the Portfolio's financial statements which are included elsewhere in this report. (5) Includes each Fund's share of its corresponding Portfolio's allocated expenses. (6) Custodian fees were reduced by credits resulting from cash balances the Fund maintained with the Custodian (Note 1C). The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, in accordance with reporting regulations in effect beginning in 1995.
See notes to financial statements WRIGHT MANAGED INCOME TRUST WRIGHT TOTAL RETURN BOND FUND ================================================================================
Year Ended December 31, ---------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1998 1997 1996(2) 1995 1994 - ----------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 12.930 $ 12.500 $ 13.120 $ 11.430 $ 13.010 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income ................... $ 0.680 $ 0.690 $ 0.720 $ 0.758 $ 0.740 Net realized and unrealized gain (loss) on investments............................ 0.524 0.427 (0.631) 1.685 (1.580) -------- -------- -------- -------- -------- Total income (loss) from investment operations........... $ 1.204 $ 1.117 $ 0.089 $ 2.443 $ (0.840) -------- -------- -------- -------- -------- Less Distributions: From net investment income............... $ (0.690) $ (0.687) $ (0.709) $ (0.753) $ (0.740) From net realized gain on investments.... (0.133) - - - - In excess of net realized gain on investments (0.001) - - - - -------- -------- -------- -------- -------- Total distributions.................... $ (0.824) $ (0.687) $ (0.709) $ (0.753) $ (0.740) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 13.310 $ 12.930 $ 12.500 $ 13.120 $ 11.430 ========= ========= ========= ========= ========= Total Return(1)............................. 9.56% 9.25% 0.87% 21.97% (6.57%) Ratios/Supplemental Data: Net assets, end of year (000 omitted).... $115,937 $ 80,004 $ 91,382 $ 122,762 $143,497 Ratio of net expenses to average net assets 0.90% 0.90% 0.80% 0.80% 0.80% Ratio of net investment income to average net assets............................. 5.18% 5.50% 5.70% 6.20% 6.10% Portfolio Turnover Rate.................. 26% 34% 96% 50% 32% (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 reinvestment date. (2)Certain of the per share data are based on average shares outstanding.
See notes to financial statements WRIGHT MANAGED INCOME TRUST WRIGHT CURRENT INCOME FUND ================================================================================
Year Ended December 31, ------------------------------- FINANCIAL HIGHLIGHTS 1998 1998 - ------------------------------------------------------------------------------------------------------- Institutional Standard Shares Shares Net asset value, beginning of year ......... $ 10.120 $ 10.630 -------- -------- Income (loss) from Investment Operations: Net investment income(1) ................ $ 0.619 $ 0.646 Net realized and unrealized gain on investments............................ 0.026 0.028 -------- -------- Total income from investment operations......... $ 0.645 $ 0.674 -------- -------- Less Distributions: From net investment income............... $ (0.615) $ (0.643) In excess of net investment income....... - (0.001) -------- -------- Total distributions.................. $ (0.615) $ (0.644) -------- -------- Net asset value, end of year ............... $ 10.150 $ 10.660 ========= ========= Total Return(2)............................. 6.56% 6.51% Ratios/Supplemental Data: Net assets, end of year (000 omitted).... $ 23,231 $ 90,262 Ratio of net expenses to average net assets 0.75%(3) 0.90%(3) Ratio of net investment income to average net assets......................... 6.11% 6.03% (1)For the year ended December 31, 1998, the operating expenses of the fund were reduced by a reduction in distribution fees by the Principal Underwriter. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1998 Net investment income per share.......... $ 0.644 ========= Ratios (As a percentage of average net assets): Expenses........................... 0.92%(3) ========= Net investment income.............. 6.01% ========= (2)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date. (3)Includes each Fund's share of its corresponding Portfolio's allocated expenses.
See notes to financial statements WRIGHT MANAGED INCOME TRUST WRIGHT CURRENT INCOME FUND - continued ================================================================================
Year Ended December 31, ---------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1997** 1997 1996 1995 1994 - ----------------------------------------------------------------------------------------------------------------------------- Institutional Shares Standard Shares -------- --------------------------------------------- Net asset value, beginning of period........ $ 10.000 $ 10.430 $ 10.670 $ 9.710 $ 10.750 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income(1) ................ $ 0.313 $ 0.658 $ 0.674 $ 0.696 $ 0.690 Net realized and unrealized gain (loss) on investments............................ 0.120 0.206 (0.239) 0.955 (1.040) -------- -------- -------- -------- -------- Total income (loss) from investment operations......... $ 0.433 $ 0.864 $ 0.435 $ 1.651 $ (0.350) -------- -------- -------- -------- -------- Less Distributions: From net investment income............... $ (0.313)(6) $ (0.664) $ (0.675) $ (0.691) $ (0.690)* -------- -------- -------- -------- -------- Total distributions.................. $ (0.313) $ (0.664) $ (0.675) $ (0.691) $ (0.690) -------- -------- -------- -------- -------- Net asset value, end of period.............. $ 10.120 $ 10.630 $ 10.430 $ 10.670 $ 9.710 ========= ========= ========= ========= ========= Total Return(2)............................. 4.40% 8.56% 4.31% 17.46% (3.30%) Ratios/Supplemental Data: Net assets, end of period (000 omitted).. $ 21,801 $ 76,217 $ 64,623 $ 66,345 $84,178 Ratio of net expenses to average net assets 0.48%(4)(5) 0.89%(4) 0.90% 0.90% 0.80% Ratio of net investment income to average net assets......................... 4.70%(5) 6.44% 6.50% 6.80% 6.90% Portfolio Turnover Rate(3) .............. 2% 3% 9% 26% 10% * Includes distribution in excess of net investment income of $.00013 per share. ** For the period from July 7, 1997 (start of business) to December 31, 1997. (1)For the year ended December 31, 1997, the Principal Underwriter reduced its fees. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1997 Net investment income per share........ $ 0.652 ========= Ratios (As a percentage of average net assets): Expenses........................... 0.95%(4) ========= Net investment income.............. 6.38% ========= (2)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date. (3)Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly in securities. The portfolio turnover rate for the period since the Fund transferred substantially all of its investable assets to the Portfolio is shown in the Portfolio's financial statements which are included elsewhere in this report. (4)Includes each Fund's share of its corresponding Portfolio's allocated expenses. (5)Annualized. (6)Includes distribution in excess of net investment income of $0.00001 per share.
See notes to financial statements WRIGHT MANAGED INCOME TRUST NOTES TO FINANCIAL STATEMENTS ================================================================================ (1) SIGNIFICANT ACCOUNTING POLICIES The Wright Managed Income Trust (the Trust), issuer of Wright U.S. Treasury Money Market Fund (WTMM) series, Wright U.S. Government Near Term Fund (WNTB)(formerly Wright U.S. Treasury Near Term Fund) series, Wright U.S. Treasury Fund (WUSTB) series, Wright Total Return Bond Fund (WTRB) series, and Wright Current Income Fund (WCIF) series (collectively, the Funds), is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end, management investment company. WNTB, WUSTB, and WCIF invest all of their investable assets in interests in a separate corresponding open-end management investment company (a Portfolio), a New York Trust, having the same investment objective as its corresponding Fund. WNTB invests its assets in the Near Term Portfolio, WUSTB invests its assets in the U.S. Treasury Portfolio, and WCIF invests its assets in the Current Income Portfolio. The value of each Fund's investment in its corresponding Portfolio reflects the Fund's proportionate interest in the net assets of that Portfolio (99.9%, 99.9%, and 99.9% at December 31, 1998 for WNTB, WUSTB, and WCIF, respectively). The performance of each Fund is directly affected by the performance of its corresponding Portfolio. The financial statements of each Portfolio, including the portfolio of investments, are included elsewhere in this report and should be read in conjunction with each Fund's financial statements. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A. Investment Valuations - For WTRB investments for which market quotations are readily available are valued at current market value as furnished by a pricing service. Investments for which valuations are not readily available will be appraised at their fair value as determined in good faith by or at the direction of the Trustees. Short-term obligations maturing in sixty days or less are valued at amortized cost, which approximates market value. WTMM's money market instruments are valued at amortized cost, which the Trustees have determined in good faith constitutes market value. WTMM's use of amortized cost is subject to the Fund's compliance with certain conditions as specified under Rule 2a-7 of the Investment Company Act of 1940. Valuation of securities by WNTB, WUSTB, and WCIF are discussed in Note 1A of the Portfolios' Notes to Financial Statements which are included elsewhere in this report. B. Interest Income - For WTMM and WTRB, interest income consists of interest accrued and discount earned (including both original issue and market discount) and amortization of premium or discount on long-term debt securities when required for federal income tax purposes. The income is accrued ratably to the date of maturity on the investments of the Funds. The net investment income of WNTB, WUSTB, and WCIF consists of the Fund's pro rata share of the net investment income of its corresponding Portfolio, less all actual and accrued expenses of each Fund determined in accordance with generally accepted accounting principles. C. Expense Reduction - The Funds have entered into an arrangement with its custodian agent whereby interest earned on uninvested cash balance is used to offset custodian fees. All significant reductions are reported as a reduction of expenses in the Statement of Operations. D. Federal Taxes - The Trust's policy is to comply with the provisions of the Internal Revenue Code (the Code) available to regulated investment companies and to distribute to shareholders each year all of its taxable income, including any net realized gain on investments. Accordingly, no provision for federal income or excise tax is necessary. At December 31, 1998, the Trust, for federal income tax purposes, had capital loss carryovers of $24,852 (WTMM), $14,989,198 (WNTB), and $1,025,395 (WCIF) which will reduce taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distribution to shareholders which would otherwise be necessary to relieve the respective Fund of any liability for federal income or excise tax. Pursuant to the Code, such capital loss carryovers will expire as follows: 12/31 WTMM WNTB WCIF - ------------------------------------------------------------------------------- 1999 $ -- $ 4,467,443 $ -- 2000 939 2,957,673 -- 2001 -- -- -- 2002 3,236 6,936,070 676,782 2003 -- 376,568 215,933 2004 13,981 -- 113,252 2005 4,550 188,862 19,428 2006 2,146 62,582 -- - ------------------------------------------------------------------------------- At December 31, 1998, net capital losses of $12,374 for WTMM attributable to security transactions incurred after October 31, 1998 are treated as arising on the first day of the Fund's next taxable year. E. 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. F. Other - Investment transactions are accounted for on the date the investments are purchased or sold. G. Multiple Classes of Shares of Beneficial Interest - Each Fund is authorized to offer a standard share class and an institutional share class. The share classes differ in their respective distribution, service fees and other class specific expenses. All shareholders bear the common expenses of the Fund pro rata based on the average daily net assets of each class, without distinction between share classes. Dividends are declared separately for each class. Each class has equal rights as to voting, redemption, dividends, and liquidation. At December 31, 1998, only WCIF had an institutional share class. (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, be classified as distributions in excess of net investment income or accumulated net realized gains. The tax treatment of distributions for the calendar year will be reported to shareholders prior to February 1, 1999 and will be based on tax accounting methods which may differ from amounts determined for financial statement purposes. During the year ended December 31,1998, the following amounts were reclassified due to differences between book and tax accounting: Accumulated Undistrib- uted Net Realized Gain (Loss) on Investment Undistributed Paid-In and Foreign Currency Net Investment Capital Transactions Income (Loss) - ------------------------------------------------------------------------------- WNTB $(3,276,797) $3,324,484 $ (47,687) WUSTB 12,961 -- (12,961) WTRB 38,717 6,136 (44,853) WCIF -- 135,719 (135,719) - ------------------------------------------------------------------------------- Net investment income, net realized gains (losses) and net assets are not affected by these reclassifications. (3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES The Trust has engaged The Winthrop Corporation (Winthrop) to act as investment adviser to the Funds pursuant to the respective Investment Advisory Contracts. Pursuant to a service agreement between Winthrop and its wholly-owned subsidiary, Wright Investors' Service, Inc. (Wright), Wright furnishes each Fund with investment management, investment advisory, and other services. For its services, Wright is compensated based upon a percentage of average daily net assets which rate is adjusted as average daily net assets exceed certain levels. For the year ended December 31, 1998, for WTMM, and WTRB the effective annual rate was 0.35% and 0.41%, respectively. The Portfolios have engaged Wright to render investment advisory services. See Note 2 of the Portfolios' Notes to Financial Statements which are included elsewhere in this report. To enhance the net income of the Funds, Wright made a reduction of its investment adviser fee by $154,396 for WTMM. In addition, $6,000 of expenses of WUSTB was allocated to the Investment Adviser. 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, 1998, the effective annual rate was 0.07% for WTMM, 0.03% for WNTB, 0.03% for WUSTB, 0.10% for WTRB, and 0.03% for WCIF. Certain of the Trustees and officers of the Trust are directors/trustees and/or officers of the above organizations. Except as to Trustees of the Trust who are not 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, except WTMM, will pay Wright Investors' Service Distributors, Inc. (Principal Underwriter), a wholly-owned subsidiary of Winthrop, at an annual rate of 0.25% of the average daily net assets of each Fund for activities primarily intended to result in the sale of each Fund's Standard shares. To enhance the net income of WNTB, WUSTB, and WCIF, the Principal Underwriter made a reduction of its fee by $32,942, $11,245, and $18,135, respectively. In addition, the Trustees have adopted a service plan (the Service Plan) which allows the Funds to reimburse the Principal Underwriter for payments to intermediaries for providing account administration and personal and account maintenance services to their customers who are beneficial owners of shares. The amount of service fee payable under the Service Plan with respect to each class of shares may not exceed 0.25% annually of the average daily net assets attributable to the respective classes. For the year ended December 31, 1998 the Funds did not accrue or pay any service fees. (5) SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in Fund shares were as follows:
Year Ended Year Ended December 31, 1998 December 31, 1997 ----------------------------------------------------------------- Shares Amount Shares Amount - ----------------------------------------------------------------------------------------------------------------------------- Wright U.S. Government Near Term Fund -- Sales................................................ 1,605,556 $ 16,447,345 1,912,457 $ 19,532,312 Issued to shareholders in payment of distributions declared............................. 314,121 3,163,303 351,009 3,583,844 Redemptions.......................................... (2,989,009) (30,604,406) (4,968,090) (50,728,625) ---------- ------------- ---------- ------------- Net decrease..................................... (1,069,332) $ (10,993,758) (2,704,624) $ (27,612,469) =========== =============== =========== =============== Wright U.S. TREASURY Fund -- Sales................................................ 1,302,718 $ 18,684,432 1,939,601 $ 26,166,981 Issued to shareholders in payment of distributions declared.......................... 231,734 3,313,736 206,796 1,808,793 Redemptions.......................................... (2,179,531) (31,426,843) (877,670) (10,869,033) ---------- ------------- ---------- ------------- Net increase (decrease).......................... (645,079) $ (9,428,675) 1,268,727 $ 17,106,741 =========== =============== =========== =============== Wright Total Return Bond Fund -- Sales................................................ 3,355,655 $ 44,394,191 565,212 $ 7,150,768 Issued to shareholders in payment of distributions declared.......................... 344,502 4,544,209 265,206 3,324,077 Redemptions.......................................... (1,178,486) (15,541,882) (1,957,795) (24,523,119) ---------- ------------- ---------- ------------- Net increase (decrease).......................... 2,521,671 $ 33,396,518 (1,127,377) $ (14,048,274) =========== =============== =========== =============== Wright Current Income Fund -- Standard Shares Sales................................................ 2,263,717 $ 24,121,027 3,537,930 $ 36,704,939 Issued to shareholders in payment of distributions declared.......................... 310,036 3,306,097 323,638 3,388,896 Redemptions.......................................... (1,275,036) (13,585,460) (2,892,503) (30,343,335) ---------- ------------- ---------- ------------- Net increase..................................... 1,298,717 $ 13,841,664 969,065 $ 9,750,500 =========== =============== =========== =============== Period from July 7, 1997, the Inception of Offering Institutional Wright Current Income Fund Fund-- Institutional Shares Shares, to December 31, 1997 -------------------------------------- Sales................................................ - $ - 2,093,926 $ 20,960,187 Issued to shareholders in payment of distributions declared.......................... 134,484 1,363,651 61,134 615,830 ---------- ------------- ---------- ------------- Net increase..................................... 134,484 $ 1,363,651 2,155,060 $ 21,576,017 =========== =============== =========== ===============
(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, 1998 ----------------------------- Wright Total Return Bond Fund - ------------------------------------------------------------------------------- Purchases -- Non-U.S. Gov't Obligations $ 21,889,421 ============== U.S. Gov't Obligations $ 28,325,946 ============== Sales -- Non-U.S. Gov't Obligations $ 2,998,919 ============== U.S. Gov't Obligations $ 20,717,269 ============== Increases and decreases in each Fund's investment in its corresponding Portfolio for the year ended December 31, 1998 were as follows: WNTB WUSTB WCIF - ----------------------------------------------------------------------------- Increases $17,618,408 $18,675,207 $24,506,099 Decreases 34,539,216 33,182,454 15,586,545 - ----------------------------------------------------------------------------- (7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) at December 31, 1998, as computed on a federal income tax basis, are as follows: Wright Total Return Bond Fund - ------------------------------------------------------------------------------ Aggregate cost............................ $ 109,135,836 ============ Gross unrealized appreciation............. $ 5,524,869 Gross unrealized depreciation............. (126,444) ------------- Net unrealized appreciation............... $ 5,398,425 ============ (8) LINE OF CREDIT The Funds participates with other funds managed by Wright in a committed $20 million unsecured line of credit agreement with a bank. The Funds may temporarily borrow from the line of credit to satisfy redemption requests or settle investment transactions. Interest is charged to each fund based on its borrowings at an amount above the federal funds rate. In addition, a fee computed at an annual rate of 0.10% on the average daily unused portion of the $20 million line of credit, is allocated among the participating funds at the end of each quarter. The Funds did not have significant borrowings or allocated fees during the year ended December 31, 1998. 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 the Wright U.S. Treasury Money Market Fund and Wright Total Return Bond Fund, of The Wright Managed Income Trust (the Trust) (comprising, respectively, of Wright U.S. Treasury Money Market Fund, Wright U.S. Government Near Term Fund (formerly Wright U.S. Treasury Near Term Fund), Wright U.S. Treasury Fund, Wright Total Return Bond Fund, and Wright Current Income Fund) as of December 31, 1998, the related statements of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1998 and 1997, and the financial highlights for each of the years in the five-year period ended December 31, 1998. 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, 1998, 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 Funds of The Wright Managed Income Trust as of December 31, 1998, 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 January 29, 1999 WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST STATEMENTS OF ASSETS AND LIABILITIES December 31, 1998 ================================================================================
Selected Junior International Blue Chip Blue Chip Blue Chip Equities Portfolio Equities Portfolio Equities Portfolio (WBC) (WJBC) (WIBC) - ------------------------------------------------------------------------------------------------------------------------------ ASSETS: Investments - Identified cost................................. $ 165,814,471 $ 33,305,483 $169,956,603 Unrealized appreciation......................... 55,613,395 1,430,611 41,784,745 ------------ ------------ ------------ Total investments, at value (Note 1A)......... $ 221,427,866 $ 34,736,094 $211,741,348 Foreign currency at value (identified cost $1,503,754) - - 1,457,673 Cash.............................................. 4,123 3,187 2,646 Dividends and interest receivable................. 210,471 50,272 135,792 Receivable for refundable foreign taxes withheld.. - - 186,471 Deferred organization expenses (Note 1C).......... 20,810 20,810 20,810 ------------ ------------ ------------ Total Assets.................................. $ 221,663,270 $ 34,810,363 $213,544,740 ------------ ------------ ------------ LIABILITIES: Payable for investments purchased................. $ - $ 503,406 $ 1,289,748 Payable to Investment Adviser..................... - 565 - Accrued expenses and other liabilities............ 6,579 2,905 24,450 ------------ ------------ ------------ Total Liabilities............................... $ 6,579 $ 506,876 $ 1,314,198 ------------ ------------ ------------ NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO.................. $ 221,656,691 $ 34,303,487 $212,230,542 ============= ============= ============= SOURCES OF NET ASSETS: Net proceeds from capital contributions and withdrawals..................................... $ 166,043,296 $ 32,872,876 $170,498,357 Unrealized appreciation of investments and foreign currency transactions (computed on the basis of identified cost)................ 55,613,395 1,430,611 41,732,185 ------------ ------------ ------------ Total......................................... $ 221,656,691 $ 34,303,487 $212,230,542 ============= ============= =============
See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST STATEMENTS OF ASSETS AND LIABILITIES December 31, 1998 ================================================================================
U.S. Government U.S. Treasury Current Income Near Term Portfolio Portfolio Portfolio (WNTB) (WUSTB) (WCIF) - -------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments - Identified cost................................. $ 89,119,160 $ 59,980,205 $110,915,436 Unrealized appreciation......................... 1,559,133 5,071,220 2,142,565 ------------ ------------ ------------ Total investments, at value (Note 1A)......... $ 90,678,293 $ 65,051,425 $113,058,001 Cash.............................................. 4,655 1,339,700 3,278 Interest receivable............................... 1,500,729 915,025 631,048 Deferred organization expenses (Note 1C).......... 19,879 19,859 19,685 Receivable from Investment Adviser................ - 6,000 - ------------ ------------ ------------ Total Assets.................................. $ 92,203,556 $ 67,332,009 $113,712,012 ------------ ------------ ------------ LIABILITIES: Accrued expenses and other liabilities............ $ 3,581 $ 2,356 $ 5,260 ------------ ------------ ------------ NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO.................. $ 92,199,975 $ 67,329,653 $113,706,752 ============= ============= ============= SOURCES OF NET ASSETS: Net proceeds from capital contributions and withdrawals..................................... $ 90,640,842 $ 62,258,433 $111,564,187 Unrealized appreciation of investments (computed on the basis of identified cost)...... 1,559,133 5,071,220 2,142,565 ------------ ------------ ------------ Total......................................... $ 92,199,975 $ 67,329,653 $113,706,752 ============= ============= =============
See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST STATEMENTS OF OPERATIONS For the Year Ended December 31, 1998 ================================================================================
Selected Junior International Blue Chip Blue Chip Blue Chip Equities Portfolio Equities Portfolio Equities Portfolio (WBC) (WJBC) (WIBC) - -------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Income - Dividends....................................... $ 3,749,260 $ 382,152 $ 4,533,826 Interest........................................ 215,554 33,792 554,818 Less: Foreign taxes............................. - - (503,355) ------------ ------------ ------------ Total income.................................. $ 3,964,814 $ 415,944 $ 4,585,289 ------------ ------------ ------------ Expenses - Investment Adviser fee (Note 2)................. $ 1,597,908 $ 190,404 $ 1,990,690 Administrator fee (Note 2)...................... 253,446 63,943 256,090 Compensation of Trustees not affiliated with the Investment Adviser or Administrator........... 1,415 1,267 1,415 Custodian fee (Note 1D)......................... 65,000 35,416 317,245 Interest expense................................ 917 117 26 Audit fees...................................... 28,500 19,800 28,500 Amortization of organization expenses (Note 1C). 5,771 5,771 5,771 Miscellaneous................................... 170 3,830 - ------------ ------------ ------------ Total expenses................................ $ 1,953,127 $ 320,548 $ 2,599,737 ------------ ------------ ------------ Deduct -....................................... Reduction of Investment Adviser fee (Note 2)................................... $ - $ 8,015 $ - Custodian fee (Note 1D)....................... - 6,736 - ------------ ------------ ------------ Total deductions........................... $ - $ 14,751 $ - ------------ ------------ ------------ Net expenses............................. $ 1,953,127 $ 305,797 $ 2,599,737 ------------ ------------ ------------ Net investment income................. $ 2,011,687 $ 110,147 $ 1,985,552 ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment and foreign currency transactions (identified cost basis)............ $ 15,538,127 $ 154,874 $ 20,726,522 Change in unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currencies.............................. (20,336,710) (2,056,708) (11,296,007) ------------ ------------ ------------ Net realized and unrealized gain (loss) on investments and foreign currency............................ $ (4,798,583) $ (1,901,834) $ 9,430,515 ------------ ------------ ------------ Net increase (decrease) in net assets from operations............................ $ (2,786,896) $ (1,791,687) $ 11,416,067 ============= ============= =============
See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST STATEMENTS OF OPERATIONS For the Year Ended December 31, 1998 ================================================================================
U.S. Government U.S. Treasury Current Income Near Term Portfolio Portfolio Portfolio (WNTB) (WUSTB) (WCIF) - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Income - Interest income................................. $ 6,293,373 $ 4,312,872 $ 7,361,461 ------------ ------------ ------------ Expenses - Investment Adviser fee (Note 2)................. $ 404,601 $ 289,260 $ 430,622 Administrator fee (Note 2)...................... 91,438 66,170 95,021 Compensation of Trustees not affiliated with the Investment Adviser or Administrator........... 1,361 1,446 1,173 Custodian fees (Note 1D)........................ 44,792 32,887 48,021 Audit fees...................................... 26,640 21.040 17,800 Legal fees...................................... 60 - - Amortization of organization expenses (Note 1C). 5,804 5,822 5,822 Miscellaneous................................... 71 2,196 5,389 ------------ ------------ ------------ Total expenses................................ $ 574,767 $ 418,821 $ 603,848 ------------ ------------ ------------ Deduct - Reduction of custodian fee (Note 1D)............ $ 6,187 $ 26,920 $ - Allocation of expense to the Investment Adviser (Note 2)...................................... - 6,000 - ------------ ------------ ------------ Net expenses.................................. $ 568,580 $ 385,901 $ 603,848 ------------ ------------ ------------ Net investment income................. $ 5,724,793 $ 3,926,971 $ 6,757,613 ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investment transactions (identified cost basis)............ $ (45,686) $ 984,728 $ (142,545) Net change in unrealized appreciation of investments.................................. 580,237 2,386,702 406,744 ------------ ------------ ------------ Net realized and unrealized gain on investments... $ 534,551 $ 3,371,430 $ 264,199 ------------ ------------ ------------ Net increase in net assets from operations.... $ 6,259,344 $ 7,298,401 $ 7,021,812 ============= ============= =============
See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST STATEMENTS OF CHANGES IN NET ASSETS ===============================================================================
Selected Blue Chip Junior Blue Chip Equities Portfolio Equities Portfolio (WBC) (WJBC) Year Ended Dec. 31 Year Ended Dec. 31 ----------------------------------------------------------- 1998 1997(1) 1998 1997(1) - ----------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income.................................. $ 2,011,687 $ 1,748,322 $ 110,147 $ 135,453 Net realized gain on investments....................... 15,538,127 19,731,212 154,874 1,729,605 Change in unrealized appreciation (depreciation) of investments....................................... (20,336,710) 30,193,816 (2,056,708) 1,275,330 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets from operations $ (2,786,896) $ 51,673,350 $ (1,791,687) $ 3,140,388 ------------ -------------- ------------ ------------ Capital transactions - Contributions.......................................... $ 40,294,485 $ 249,862,313 $ 10,001,530 $ 34,412,901 Withdrawals............................................ (75,343,029) (42,043,542) (7,395,707) (4,063,948) ------------ ------------ ------------ ------------ Increase (decrease) in net assets resulting from capital transactions.................... $(35,048,544) $ 207,818,771 $ 2,605,823 $ 30,348,953 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................... $(37,835,440) $ 259,492,121 $ 814,136 $ 33,489,341 NET ASSETS: At beginning of year..................................... 259,492,131 10 33,489,351 10 ------------ ------------ ------------ ------------ At end of year........................................... $ 221,656,691 $ 259,492,131 $ 34,303,487 $ 33,489,351 ============= ============= ============= ============= (1) For the period from the start of business, May 2, 1997 to December 31, 1997.
See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST STATEMENTS OF CHANGES IN NET ASSETS ================================================================================
International Blue Chip U.S. Government Equities Portfolio Near Term Portfolio (WIBC) (WNTB) Year Ended Dec. 31 Year Ended Dec. 31 ---------------------------------------------------------------- 1998 1997(1) 1998 1997(1) - ------------------------------------------------------------------------------------------------------------------------------ INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income.................................. $ 1,985,552 $ 1,773,934 $ 5,724,793 $ 4,610,880 Net realized gain (loss) on investments................ 20,726,522 14,916,066 (45,686) (75,865) Change in unrealized appreciation (depreciation) of investments....................................... (11,296,007) (6,279,704) 580,237 771,013 ------------ ------------ ------------ ------------ Net increase in net assets from operations.......... $ 11,416,067 $ 10,410,296 $ 6,259,344 $ 5,306,028 ------------ ------------ ------------ ------------ Capital transactions - Contributions.......................................... $110,766,485 $ 388,886,471 $ 17,618,408 $136,940,825 Withdrawals............................................ (166,998,630) (142,250,157) (34,539,216) (39,385,424) ------------ ------------ ------------ ------------ Increase (decrease) in net assets resulting from capital transactions.................... $(56,232,145) $ 246,636,314 $(16,920,808) $ 97,555,401 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................... $(44,816,078) $ 257,046,610 $(10,661,464) $102,861,429 NET ASSETS: At beginning of year..................................... 257,046,620 10 102,861,439 10 ------------ ------------ ------------ ------------ At end of year........................................... $212,230,542 $ 257,046,620 $ 92,199,975 $102,861,439 ============= ============= ============= ============= (1) For the period from the start of business, May 2, 1997 to December 31, 1997.
See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST STATEMENTS OF CHANGES IN NET ASSETS ================================================================================
U.S. Treasury Current Income Portfolio Portfolio (WUSTB) (WCIF) Year Ended Dec. 31 Year Ended Dec. 31 ------------------------------------------------------------- 1998 1997(1) 1998 1997(1) - ---------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income.................................. $ 3,926,971 $ 2,558,433 $ 6,757,613 $ 4,096,150 Net realized gain (loss) on investments................ 984,728 - (142,545) (56,605) Change in unrealized appreciation of investments....................................... 2,386,702 3,393,339 406,744 2,551,399 ------------ ------------ ------------ ------------ Net increase in net assets from operations.......... $ 7,298,401 $ 5,951,772 $ 7,021,812 $ 6,590,944 ------------ ------------ ------------ ------------ Capital transactions - Contributions.......................................... $ 18,675,207 $ 76,417,800 $ 24,506,099 $117,569,110 Withdrawals............................................ (33,182,454) (7,831,083) (15,586,545) (26,394,678) ------------ ------------ ------------ ------------ Increase (decrease) in net assets resulting from capital transactions.................... $(14,507,247) $ 68,586,717 $ 8,919,554 $ 91,174,432 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................... $ (7,208,846) $ 74,538,489 $ 15,941,366 $ 97,765,376 NET ASSETS: At beginning of year..................................... 74,538,499 10 97,765,386 10 ------------ ------------ ------------ ------------ At end of year........................................... $ 67,329,653 $ 74,538,499 $113,706,752 $ 97,765,386 ============= ============= ============= ============= (1) For the period from the start of business, May 2, 1997 to December 31, 1997.
See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST WRIGHT MANAGED EQUITY TRUST PORTFOLIOS ================================================================================
Selected Blue Chip Junior Blue Chip International Blue Chip Equities Portfolio Equities Portfolio Equities Portfolio SUPPLEMENTARY DATA (WBC) (WJBC) (WIBC) - ------------------------------------------------------------------------------------------------------------------------------- Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31 1998 1997(2) 1998 1997(2) 1998 1997(2) Ratios (As of percentage of average daily net assets)++: Net expenses(1) ......................... 0.77% 0.66%+ 0.90% 0.48%+ 1.01% 0.90%+ Net investment income.................... 0.80% 1.08%+ 0.32% 0.99%+ 0.77% 0.95%+ Portfolio Turnover.......................... 78% 28% 49% 36% 66% 37% Net assets, end of period (000 omitted)..... $221,657 $259,492 $34,303 $ 33,489 $212,231 $257,047 ++ For the year ended December 31, 1998 and the period from the start of business, May 2, 1997 to December 31, 1997, the operating expenses of WJBC reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows: 1998 1997(2) ---- ------- Ratios (As of percentage of average daily net assets): Expenses .......................................... . 0.93% 0.80%+ Net investment income............................... 0.29% 0.67%+ + Annualized. (1)The expense ratios for the Portfolios have been adjusted to reflect a change in reporting requirements. The new reporting guidelines require each Portfolio to increase its expense ratio by the effect of any offset arrangements with its service providers. The computation of net expenses to average daily net assets reported above is computed without consideration of credits in such offset arrangements. If these credits were considered, the ratio of net expenses to average daily net assets would have been reduced to 0.88% for the year ended December 31, 1998 and 0.45% for the period from the start of business, May 2, 1997 to December 31, 1997, for WJBC. (2)For the period from the start of business, May 2, 1997 to December 31, 1997.
See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST WRIGHT MANAGED INCOME TRUST PORTFOLIOS ================================================================================
U.S. Government U.S. Treasury Current Income Near Term Portfolio Portfolio Portfolio SUPPLEMENTARY DATA (WNTB) (WUSTB) (WCIF) - ----------------------------------------------------------------------------------------------------------------------------------- Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31 1998 1997(2) 1998 1997(2) 1998 1997(2) Ratios (As a percentage of average daily net assets)++: Net expenses(1) ......................... 0.57% 0.46%+ 0.57% 0.56%+ 0.57% 0.48%+ Net investment income.................... 5.68% 6.24%+ 5.45% 6.11%+ 6.33% 6.66%+ Portfolio Turnover.......................... 10% 0% 7% 0% 1% 7% Net assets, end of period (000 omitted)..... $92,200 $102,861 $67,330 $74,536 $113,707 $97,765 + Annualized. (1)The expense ratios for the Portfolios have been adjusted to reflect a change in reporting requirements.The new reporting guidelines require each portfolio to increase its expense ratio by the effect of any offset arrangements with its service providers. The computation of net expenses to average daily net assets reported above is computed without consideration of credits in such offset arrangements. If these credits were considered, the ratio of net expenses to average daily net assets would have been reduced to 0.56% and 0.45% for the year ended December 31, 1998 and the period from the start of business, May 2, 1997 to December 31, 1997, for WNTB, respectively and 0.54% and 0.41% for the year ended December 31, 1998 and the period from the start of business, May 2, 1997 to December 31, 1997, for WUSTB, respectively. (2)For the period from the start of business, May 2, 1997 to December 31, 1997. ++ For the year ended December 31,1998, the operating expenses of WUSTB reflect an allocating of expenses to the investment adviser. Had such action not been taken, the ratios would have been as follows: Ratios (as a percentage of average daily net assets): 1998 ------ Expenses 0.58% Net Expenses 0.55% Net Investment Income 5.44%
See notes to financial statements Wright Blue Chip Master Portfolio Trust NOTES TO FINANCIAL STATEMENTS ================================================================================ (1) Significant Accounting Policies The Wright Blue Chip Master Portfolio Trust (the Trust), issuer of Selected Blue Chip Equities Portfolio (Selected Portfolio), Junior Blue Chip Equities Portfolio (Junior Portfolio), International Blue Chip Equities Portfolio (International Portfolio), U.S. Government Near Term Portfolio (Term Portfolio) (formerly U.S. Treasury Near Term Portfolio), U.S. Treasury Portfolio (Treasury Portfolio), and Current Income Portfolio (Income Portfolio), collectively the Portfolios, are registered under the Investment Company Act of 1940 as non-diversified open-end management investment companies which were organized as trusts under the laws of the State of New York on March 18, 1997. The Declaration of Trust permits the Trustees to issue interests in the Portfolios. The following is a summary of significant accounting policies of the Portfolios. The policies are in conformity with generally accepted accounting principles. A. Investment Valuations - Securities listed on securities exchanges or in the NASDAQ National Market are valued at closing sale prices. Securities traded on more than one U.S. or foreign securities exchange are valued at the last sale price on the exchange representing the principal market for such securities, if those prices are deemed to be representative of market values at the close of business. Unlisted or listed securities, for which closing sale prices are not available, are valued at the mean between latest bid and asked prices. Fixed income securities for which market quotations are readily available are valued on the basis of valuations supplied by a pricing service. Short-term obligations maturing in sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are unavailable, or deemed not to be representative of market values at the close of business, are appraised at their fair value as determined in good faith by or at the direction of the Trustees of the Trust. B. Foreign Currency Translation - Investment security valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses are translated into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. C. Deferred Organization Expenses - Costs incurred by a Portfolio in connection with its organization are being amortized on the straight-line basis over five years beginning on the date each Portfolio commenced operations. D. Expense Reductions - The Portfolios have entered into an arrangement with its custodian whereby interest earned on uninvested cash balances are used to offset custodian fees. All significant reductions are reported as a reduction of expenses in the Statement of Operations. E. Income Taxes - The Portfolios are treated as partnerships for federal tax purposes. No provision is made by the Portfolios for federal or state taxes on any taxable income of the Portfolios because each investor in the Portfolios is ultimately responsible for the payment of any taxes on its share of such income. Since some of the Portfolios' investors are regulated investment companies that invest all or substantially all of their assets in the Portfolios, the Portfolios normally must satisfy the applicable source of income and diversification requirements (under the Internal Revenue Code) in order for their respective investors to satisfy them. The Portfolios will allocate at least annually among their respective investors each investor's distributive share of the Portfolios' net taxable investment income, net realized capital gains and any other items of income, gain, loss, deductions or credit. F. Use of Estimates - The preparation of financial statements in conformity with 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. G. Other - Investment transactions are accounted for on the date the investments are purchased or sold. Dividend income is recorded on the ex-dividend date. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Portfolio is informed of the ex-dividend date. Interest income consists of interest accrued and discount earned (including both original issue and market discount) and amortization of premium or discount on long-term debt securities when required for federal income tax purposes. The interest income is accrued ratably to the date of maturity on the investments of the Portfolios. H. Forward Foreign Currency Contracts - The International Portfolio may enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. Risks may arise upon entering these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The International Portfolio will enter into forward contracts for hedging purposes in connection with purchases and sales of securities denominated in foreign currencies. The forward foreign currency exchange contracts are adjusted by the daily forward exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until such time as the contracts have been closed or offset. (2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES The Trust has engaged The Winthrop Corporation (Winthrop) to act as investment adviser to the Portfolios pursuant to the respective Investment Advisory Contracts. Pursuant to a service agreement between Winthrop and its wholly-owned subsidiary, Wright Investors' Service, Inc. (Wright), Wright furnishes each Portfolio with investment management, investment advisory, and other services. For its services, Wright is compensated based upon a percentage of average daily net assets, which rate is adjusted as average daily net assets exceed certain levels. For the year ended December 31, 1998, the effective annual rate was 0.63% for the Selected Portfolio, 0.55% for the Junior Portfolio, 0.77% for the International Portfolio, 0.41% for the Term Portfolio, 0.40% for the Treasury Portfolio, and 0.41% for the Income Portfolio. To enhance the net income of the Fund, Wright made a reduction of its investment adviser fee by $8,015 for the Junior Portfolio. Additionally, $6,000 of expenses were allocated to the investment adviser for the U.S. Treasury Portfolio. Effective February 1, 1998, the Trust 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, 1998, the effective annual rate was 0.10% for the Selected Portfolio, 0.18% for the Junior Portfolio, 0.10% for the International Portfolio, 0.09% for the Term Portfolio, 0.09% for the Treasury Portfolio, and 0.09% for the Income Portfolio. Certain of the Trustees and officers of the Portfolio are Trustees or officers of the above organizations. Except as to Trustees of the Portfolios who are not affiliated with Wright, Trustees and officers receive remuneration for their services to the Portfolios out of the fees paid to Wright. (3) INVESTMENTS The Term Portfolio, Treasury Portfolio, and Income Portfolio invest primarily in debt securities. The ability of the issuers of these debt securities held by the Portfolios to meet their obligations may be affected by economic developments in a specific industry or municipality. Purchases and sales of investments, other than U.S. Government securities and short-term obligations, for the year ended December 31, 1998 were as follows:
Selected Junior International U.S. Government U.S. Current Blue Chip Blue Chip Blue Chip Near Term Treasury Income Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio - ---------------------------------------------------------------------------------------------------------------------------- Purchases - Non-U.S. Gov't Obligations $ 164,479,790 $ 19,599,239 $ 157,872,009 $ -- $ -- $ -- ============ ============ ============ ============ ============ ============ U.S. Gov't Obligations $ -- $ -- $ -- $ 192,215,000 $ 4,898,031 $ 34,927,315 ============ ============ ============ ============ ============ ============ Sales - Non-U.S. Gov't Obligations $ 193,276,458 $ 16,917,180 $ 215,793,262 $ -- $ -- $ -- ============ ============ ============ ============ ============ ============ U.S. Gov't. Obligations $ -- $ -- $ -- $ 10,311,660 $ 15,436,855 $ 1,494,150 ============ ============ ============ ============ ============ ============ - ----------------------------------------------------------------------------------------------------------------------------
(4) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) of the investment securities owned at December 31, 1998, as computed on a federal income tax basis, are as follows:
Selected Junior International U.S. Government U.S. Current Blue Chip Blue Chip Blue Chip Near Term Treasury Income Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio - ----------------------------------------------------------------------------------------------------------------------------- Aggregate cost $166,410,569 $ 33,305,483 $171,244,703 $ 89,119,160 $ 59,980,205 $110,915,437 ============ ============ ============ ============ ============ ============ Gross unrealized appreciation $ 58,051,455 $ 4,309,980 $ 56,303,795 $ 1,676,564 $ 5,085,098 $ 2,271,668 Gross unrealized depreciation (2,805,346) (2,879,369) (15,807,150) (117,431) (13,878) (129,103) ----------- ----------- ----------- ----------- ----------- ----------- Net unrealized appreciation $ 55,246,109 $ 1,430,611 $ 40,496,645 $ 1,559,133 $ 5,071,220 $ 2,142,565 ============ ============ ============ ============ ============ ============ - ------------------------------------------------------------------------------------------------------------------------------
(5) FINANCIAL INSTRUMENTS The Portfolios may trade in financial instruments with off-balance sheet risk in the normal course of their investing activities in order to manage exposure to market risks such as interest rates and foreign currency exchange rates. These financial instruments include forward foreign currency contracts for the International Portfolio. The notional or contractual amounts of these instruments represent the investment the Portfolio has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. As of December 31, 1998, the International Portfolio had no forward foreign currency exchange contracts open. (6) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS The International Portfolio's investing in securities issued by companies whose principal business activities are outside the United States may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of International Portfolio, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the United States. Settlement of securities transactions in foreign countries may be delayed and is generally less frequent than in the United States, which could affect the liquidity of International Portfolio's assets. International Portfolio may be unable to sell securities where the registration process is incomplete and may experience delays in receipt of dividends. (7) LINE OF CREDIT The Portfolios participate with other funds managed by Wright in a committed $20 million unsecured line of credit agreement with a bank. The Portfolios may temporarily borrow from the line of credit to settle investment transactions. Interest is charged to each Portfolio based on its borrowings at an amount above the federal funds' rate. In addition, a fee computed at an annual rate of 0.10% on the average daily unused portion of the $20 million line of credit, is allocated among the participating funds at the end of each quarter. The Portfolios did not have significant borrowings or allocated fees during the period ended December 31, 1998. (8) SUBSEQUENT EVENT Effective January 1, 1999, Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain have adopted the Euro as its common currency. Existing national currencies of these countries will be sub-currencies of the Euro until July 1, 2002, when the old currencies disappear entirely. The conversion to Euro impacts only the Wright International Blue Chip Portfolio and there is no financial statement implication as of December 31, 1998. INDEPENDENT AUDITORS' REPORT ================================================================================ To the Trustees and Investors of The Wright Blue Chip Master Portfolio Trust: We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of The Wright Blue Chip Master Portfolio Trust (the Trust) (comprising, respectively, of Wright Selected Blue Chip Equities Portfolio, Wright Junior Blue Chip Equities Portfolio, Wright International Blue Chip Equities Portfolio, Wright U.S. Government Near Term Portfolio (formerly Wright U.S. Treasury Near Term Portfolio), Wright U.S. Treasury Portfolio, and Wright Current Income Portfolio) as of December 31, 1998, the related statements of operations for the year then ended, and the statements of changes in net assets and supplementary data for the year then ended and for the period from the start of business May 2, 1997, to December 31, 1997. These financial statements and supplementary data are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and supplementary data 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 supplementary data 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, 1998, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. 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 supplementary data present fairly, in all material respects, the financial position of each of the aforementioned funds of The Wright Blue Chip Master Portfolio Trust as of December 31, 1998, the results of their operations, the changes in their net assets, and their supplementary data for the respective stated periods in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Boston, Massachusetts January 29, 1999 WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC) PORTFOLIO OF INVESTMENTS December 31, 1998 ================================================================================ Shares Value -------- ------- Equity Interests -- 96.3% APPAREL -- 1.8% VF Corp............................. 19,900 $ 932,813 ----------- AUTOMOTIVE -- 6.0% Dana Corporation.................... 24,500 $ 1,001,437 Eaton Corp.......................... 14,400 1,017,900 Johnson Controls.................... 17,400 1,026,600 ----------- $ 3,045,937 ----------- CHEMICALS -- 8.2% Air Products & Chemicals............ 23,100 $ 924,000 Morton International Inc............ 11,000 269,500 PPG Industries...................... 17,100 996,075 Rohm & Haas Co...................... 32,000 964,000 Sherwin Williams Co................. 34,000 998,750 ----------- $ 4,152,325 ----------- DIVERSIFIED -- 5.8% General Electric Co................. 10,000 $ 1,020,625 Tyco International Ltd.............. 12,600 950,513 United Technologies................. 9,200 1,000,500 ----------- $ 2,971,638 ----------- DRUGS, COSMETICS & HEALTHCARE -- 4.0% Johnson & Johnson................... 12,500 $ 1,048,437 Merck & Co., Inc.................... 6,700 989,506 ----------- $ 2,037,943 ----------- ELECTRONICS -- 13.4% Computer Associates Int'l. Inc...... 23,100 $ 984,637 EMC Corp./Mass*..................... 13,700 1,164,500 Intel Corp.......................... 9,400 1,114,487 International Business Machines..... 5,800 1,071,550 Raytheon Co......................... 19,400 1,033,050 Sun Microsystems, Inc*.............. 16,800 1,438,500 ----------- $ 6,806,724 ----------- FINANCIAL -- 13.5% American Express Co................. 9,500 $ 971,375 American International Group........ 10,125 978,328 BB&T Corporation.................... 23,400 943,312 Fannie Mae.......................... 12,300 910,200 Jefferson-Pilot Corp................ 14,000 1,050,000 KeyCorp. (New)...................... 31,400 1,004,800 MBIA, Inc........................... 15,600 1,022,775 ----------- $ 6,880,790 ----------- MACHINERY & EQUIPMENT -- 7.3% Caterpillar......................... 15,200 $ 699,200 Dover Corp.......................... 26,600 974,225 Ingersoll Rand Co................... 21,450 1,006,809 Pitney-Bowes Inc.................... 15,800 1,043,788 ----------- $ 3,724,022 ----------- METAL PRODUCERS -- 2.1% Nucor Corp.......................... 24,000 $ 1,038,000 ----------- METAL PRODUCTS MANUFACTURERS -- 1.8% Illinois Tool Works Inc............. 16,100 $ 933,800 ----------- OIL, GAS, COAL & RELATED SERVICES -- 4.5% Exxon Corp.......................... 12,600 $ 921,375 Halliburton Company................. 12,400 367,350 Mobil Corp.......................... 11,300 984,513 ----------- $ 2,273,238 ----------- PRINTING & PUBLISHING -- 1.8% Gannett Co. Inc..................... 14,000 $ 926,625 ----------- RECREATION -- 2.0% Hasbro Inc.......................... 28,400 $ 1,025,950 ----------- RETAILERS -- 11.9% Costco Companies Inc*............... 14,100 $ 1,017,844 Lowes Co's., Inc.................... 21,600 1,105,650 May Dept. Stores.................... 16,100 972,038 Rite-Aid Corporation................ 19,400 961,513 TJX Cos. Inc. (New)................. 36,200 1,049,800 Wal-Mart Stores..................... 11,800 960,963 ----------- $ 6,067,808 ----------- TRANSPORTATION -- 2.0% Southwest Airlines Inc.............. 45,850 $ 1,028,759 ----------- UTILITIES -- 8.2% Alltel Corporation.................. 18,100 $ 1,082,606 Bellsouth Corporation............... 21,200 1,057,350 Duke Energy Corp.................... 15,500 992,969 SBC Communications, Inc............. 18,800 1,008,150 ----------- $ 4,141,075 ----------- MISCELLANEOUS -- 2.0% Avery-Dennison Corp................. 22,000 $ 991,375 ----------- TOTAL EQUITY INTERESTS -- 96.3% (identified cost, $37,042,657) $ 48,978,822 Reserve Funds -- 5.9% Face Amount ------------ American Express Corp., 4.702%, 1/4/99 (at amortized cost).............$2,505,000 $ 2,505,000 General Electric Cap Corp., 4.702%, 1/4/99 (at amortized cost)...............$525,000 525,000 ----------- $ 3,030,000 Total INVESTMENTS -- 102.2% (identified cost, $40,072,657) $ 52,008,822 OTHER ASSETS, LESS LIABILITIES -- (2.2%) (1,130,356) ----------- NET ASSETS -- 100% $ 50,878,466 ============ * Non-income-producing security. See notes to financial statements WRIGHT TOTAL RETURN BOND FUND (WTRB) PORTFOLIO OF INVESTMENTS December 31, 1998 ================================================================================
Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity(1) - ---------------------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS FINANCIAL - --------- $ 1,100,000 Ameritech Cap 6.150% 1/15/08 $ 105.351 $ 1,158,861 5.84% 5.48% 2,000,000 Associates Corp. 6.450% 10/15/01 102.543 2,050,860 6.29% 5.41% 1,000,000 First Data Corp. 5.800% 12/15/08 98.885 988,850 5.87% 5.95% 3,200,000 Ford Motor Co. 6.500% 8/1/18 102.452 3,278,464 6.34% 6.25% 2,825,000 General Elec. Capital Corp. 6.500% 11/1/06 106.608 3,011,676 6.10% 5.36% 2,000,000 GMAC 6.375% 10/15/04 103.102 2,062,040 6.18% 5.66% 2,675,000 IBM Credit Corp. 6.200% 8/28/00 101.918 2,726,307 6.08% 5.08% 1,000,000 J.P. Morgan 6.875% 1/15/07 106.177 1,061,770 6.48% 6.25% INDUSTRIALS - -------------- $ 1,795,000 Hasbro Inc. 5.600% 11/1/05 $ 98.730 $ 1,772,204 5.67% 5.50% 3,200,000 Kimberly Clark Corp. 6.250% 7/15/18 103.294 3,305,408 6.05% 5.89% 2,400,000 McDonald's Corp. 6.500% 8/1/07 107.864 2,588,736 6.03% 5.32% 2,000,000 Walt Disney Co. 6.750% 3/30/06 108.214 2,164,280 6.24% 5.31% 3,500,000 Warner-Lambert Co. 5.750% 1/15/03 101.491 3,552,185 5.67% 5.04% UTILITIES - ---------- $ 1,000,000 Duke Energy Corp. 6.000% 12/1/28 $ 96.080 $ 960,800 6.24% 6.21% 1,680,000 Lucent Tech. 5.500% 11/15/08 101.136 1,699,084 5.44% 5.40% 1,500,000 New York Telecom. 6.000% 4/15/08 103.626 1,554,390 5.79% 5.50% 2,000,000 SBC Communications Inc. 6.625% 11/1/09 109.329 2,186,580 6.06% 5.55% 955,000 Tennessee Valley Authority 6.000% 3/15/13 104.672 999,617 5.73% 5.52% ---------- Total Corporate Bonds (identified cost, $35,996,403) - 32.0% $37,122,112 GOVERNMENT INTERESTS U.S. GOVERNMENT AGENCIES - ------------------------- $ 1,280,000 Federal Home Loan Mortgage 5.800% 9/2/08 103.500 $ 1,324,800 5.60% 5.35% 615,000 Federal Home Loan Mortgage 5.750% 4/15/08 103.391 635,855 5.56% 5.25% 500,000 Federal Home Loan Mortgage 6.125% 4/15/08 99.410 497,050 6.16% - 1,250,000 Federal Home Loan Mortgage 5.540% 10/27/08 98.859 1,235,738 5.60% 5.63% 2,000,000 Federal National Mtg. Assn. 6.400% 11/9/04 102.656 2,053,120 6.23% 5.74% 1,000,000 Federal National Mtg. Assn. 5.750% 6/15/05 103.250 1,032,500 5.57% 5.07% 1,500,000 Federal National Mtg. Assn. 6.560% 11/26/07 103.703 1,555,545 6.33% 5.92% 1,000,000 Federal National Mtg. Assn. 6.170% 1/15/08 101.656 1,016,560 6.07% 5.85% 1,315,000 Federal National Mtg. Assn. 5.750% 2/15/08 103.547 1,361,643 5.55% 5.23% 1,000,000 Federal National Mtg. Assn. 6.000% 5/15/08 105.562 1,055,620 5.68% 5.21% 1,250,000 Federal National Mtg. Assn. 5.625% 3/15/01 101.469 1,268,363 5.54% 4.84% 1,400,000 Federal National Mtg. Assn. 4.750% 11/14/03 98.719 1,382,066 4.81% 5.01% 1,925,000 Federal National Mtg. Assn. 5.350% 10/27/03 98.641 1,898,839 5.42% 5.55% 562,677 GNMA Pool # 436214 6.500% 2/15/13 101.875 573,227 6.38% N/C 1,103,714 GNMA Pool # 422506 6.500% 3/15/26 101.031 1,115,094 6.43% N/C 1,463,890 GNMA Pool # 460726 6.500% 12/15/27 101.000 1,478,529 6.44% N/C 952,848 GNMA Pool # 427199 7.000% 12/15/27 102.312 974,879 6.84% N/C U.S. Government Agencies - cont. - --------------------------------- $ 500,000 GNMA Pool # 488924 6.500% 11/15/28 $ 101.000 $ 505,000 6.44% N/C 699,080 GNMA Pool # 002671 6.000% 11/20/28 98.625 689,468 6.08% N/C 983,393 GNMA Pool # 463839 6.000% 5/15/13 100.718 990,454 5.96% N/C 491,482 GNMA Pool # 442996 6.000% 6/15/13 100.718 495,012 5.96% N/C 704,593 GNMA Pool # 376400 6.500% 2/15/24 101.062 712,076 6.43% N/C 1,721,929 GNMA Pool # 458672 6.500% 1/15/28 101.000 1,739,149 6.44% N/C U.S. TREASURIES - ----------------- $ 1,750,000 U.S. Treasury Bond 8.250% 5/15/05 $ 104.531 $ 1,829,293 7.89% 7.34% 9,475,000 U.S. Treasury Bond 7.250% 5/15/16 121.141 11,478,110 5.98% 5.36% 1,300,000 U.S. Treasury Bond 6.250% 8/15/23 111.766 1,452,958 5.59% 5.37% 3,500,000 U.S. Treasury Bond 6.000% 2/15/26 109.078 3,817,730 5.50% 5.34% 2,000,000 U.S. Treasury Note 5.875% 11/15/99 101.031 2,020,620 5.82% 4.65% 3,300,000 U.S. Treasury Note 5.375% 1/31/00 100.750 3,324,750 5.33% 4.62% 1,900,000 U.S. Treasury Note 5.875% 6/30/00 101.734 1,932,946 5.77% 4.63% 2,500,000 U.S. Treasury Note 5.750% 10/31/00 101.906 2,547,650 5.64% 4.63% 3,000,000 U.S. Treasury Note 7.750% 2/15/01 106.172 3,185,160 7.30% 4.65% 1,700,000 U.S. Treasury Note 7.500% 2/15/05 114.500 1,946,500 6.55% 4.74% 3,000,000 U.S. Treasury Note 6.500% 5/15/05 109.594 3,287,820 5.93% 4.74% 4,100,000 U.S. Treasury Note 6.500% 8/15/05 109.906 4,506,145 5.91% 4.73% 4,000,000 U.S. Treasury Note 6.500% 10/15/06 110.922 4,436,880 5.86% 4.76% ---------- Total Government Interests (identified cost, $67,084,433) - 61.6% $ 71,357,149 COMMERCIAL PAPER - 5.2% $ 5,690,000 American Express Corp. 4.702% 1/4/99 $ 5,690,000 4.70% 4.70% 365,000 General Elec. Cap. Corp. 4.702% 1/4/99 365,000 4.70% 4.70% ---------- Total Commercial Paper $ 6,055,000 Total Investments (identified cost, $109,135,836) - 98.8% $114,534,261 Other Assets, Less Liabilities - 1.2% 1,403,089 ---------- Net Assets -- 100.0% $115,937,350 ============ Average Maturity - 8.79 Years (1) (1) Unaudited.
See notes to financial statements WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) PORTFOLIO OF INVESTMENTS December 31, 1998 ================================================================================ Face Interest Maturity Amount Issuer Rate Date Value - ------------------------------------------------------------------------------- $4,200,000 U.S. Treasury Bills 5.020% 01/14/99 $4,192,372 2,100,000 U.S. Treasury Bills 4.750% 01/21/99 2,094,443 3,100,000 U.S. Treasury Bills 4.540% 01/21/99 3,092,181 1,000,000 U.S. Treasury Bills 4.550% 01/21/99 997,472 4,100,000 U.S. Treasury Bills 4.740% 01/28/99 4,085,410 3,400,000 U.S. Treasury Bills 4.850% 02/11/99 3,381,206 3,500,000 U.S. Treasury Bills 4.405% 02/11/99 3,482,441 500,000 U.S. Treasury Bills 4.250% 03/11/99 495,927 5,400,000 U.S. Treasury Bills 4.350% 03/11/99 5,354,978 4,500,000 U.S. Treasury Bills 4.350% 03/18/99 4,458,660 6,000,000 U.S. Treasury Bills 4.350% 03/25/99 5,939,810 5,500,000 U.S. Treasury Bills 4.330% 04/08/99 5,435,832 3,200,000 U.S. Treasury Bills 4.290% 04/15/99 3,160,342 400,000 U.S. Treasury Bills 4.300% 04/15/99 395,031 700,000 U.S. Treasury Bills 4.320% 04/15/99 691,264 7,000,000 U.S. Treasury Bills 4.400% 04/22/99 6,905,018 2,600,000 U.S. Treasury Bills 5.035% 01/07/99 2,597,803 1,200,000 U.S. Treasury Bills 5.000% 01/07/99 1,199,000 1,300,000 U.S. Treasury Bills 4.620% 02/04/99 1,294,314 1,900,000 U.S. Treasury Bills 4.650% 02/04/99 1,891,656 350,000 U.S. Treasury Bills 4.700% 02/04/99 348,446 200,000 U.S. Treasury Bills 4.720% 02/04/99 199,108 200,000 U.S. Treasury Bills 3.940% 03/04/99 198,643 2,000,000 U.S. Treasury Bills 4.330% 04/01/99 1,978,335 300,000 U.S. Treasury Bills 4.380% 04/01/99 296,716 500,000 U.S. Treasury Bills 4.340% 04/01/99 494,575 1,300,000 U.S. Treasury Bills 4.350% 04/01/99 1,285,862 400,000 U.S. Treasury Bills 4.420% 04/01/99 395,580 2,075,000 U.S. Treasury Bills 4.100% 04/29/99 2,047,099 500,000 U.S. Treasury Bills 4.380% 04/29/99 492,822 500,000 U.S. Treasury Bills 4.480 04/29/99 492,658 3,300,000 U.S. Treasury Bills 4.375% 05/27/99 3,241,438 400,000 U.S. Treasury Bills 4.340% 05/27/99 392,960 2,000,000 U.S. Treasury Bills 4.380% 05/27/99 1,964,474 3,750,000 U.S. Treasury Bills 4.340% 07/22/99 3,658,674 $1,000,000 U.S. Treasury Notes 5.500% 02/28/99 $1,018,643 1,000,000 U.S. Treasury Notes 5.500% 02/28/99 1,018,680 2,000,000 U.S. Treasury Notes 5.500% 02/28/99 2,037,363 1,000,000 U.S. Treasury Notes 5.500% 02/28/99 1,018,681 5,400,000 U.S. Treasury Notes 6.375% 05/15/99 5,482,891 1,300,000 U.S. Treasury Notes 5.000% 02/15/99 1,324,292 700,000 U.S. Treasury Notes 5.000% 02/15/99 713,206 ---------- Total Investments At Amortized Cost -- 99.9% $91,246,306 Other Assets, less Liabilities -- 0.1% 76,686 ---------- Net Assets -- 100.0% $91,322,992 =========== See notes to financial statements SELECTED BLUE CHIP EQUITIES PORTFOLIO (WBC) PORTFOLIO OF INVESTMENTS December 31, 1998 ================================================================================ Shares Value ------- -------- Equity Interests -- 98.9% APPAREL -- 2.2% Liz Claiborne....................... 30,000 $ 946,875 VF Corp............................. 84,660 3,968,437 ----------- $ 4,915,312 ----------- AUTOMOTIVE -- 7.2% Dana Corp........................... 95,800 $ 3,915,825 Johnson Controls.................... 70,400 4,153,600 Modine Mfg. Co...................... 115,700 4,194,125 Superior Industries Int'l. Inc...... 135,500 3,768,594 ----------- $ 16,032,144 ----------- CHEMICALS -- 3.7% Cooper Tire & Rubber Co............. 60,000 $ 1,226,250 Morton International Inc............ 33,000 808,500 PPG Industries Inc.................. 53,800 3,133,850 Rohm & Haas Co...................... 100,800 3,036,600 ----------- $ 8,205,200 ----------- CONSTRUCTION -- 6.1% Jacobs Engineering Group*........... 104,500 4,258,375 Southdown, Inc...................... 72,408 4,285,649 Texas Industries Inc................ 60,000 1,616,250 Toll Brothers*...................... 146,500 3,305,406 ----------- $ 13,465,680 ----------- DIVERSIFIED -- 4.5% Carlisle Corp....................... 30,000 $ 1,548,750 Crane Company....................... 137,650 4,155,309 Lancaster Colony Corp............... 129,500 4,160,187 ----------- $ 9,864,246 ----------- DRUGS, COSMETICS & HEALTHCARE -- 3.9% Johnson & Johnson................... 57,000 $ 4,780,875 Merck & Co., Inc.................... 26,800 3,958,025 ----------- $ 8,738,900 ----------- ELECTRONICS -- 9.2% Dallas Semiconductor Corp........... 104,900 $ 4,274,675 Intel Corporation................... 32,000 3,794,000 International Business Machine...... 23,000 4,249,250 Raytheon Co. Class B................ 67,260 3,581,595 Sun Microsystems Inc*............... 52,900 4,529,562 ----------- $ 20,429,082 ----------- FINANCIAL -- 18.2% AMBAC Inc........................... 66,200 $ 3,984,413 BB&T Corporation.................... 116,800 4,708,500 Commerce Bancshares, Inc............ 86,691 3,684,374 Compass Bancshares.................. 109,750 4,177,359 Edwards (A.G.), Inc................. 123,750 4,609,688 Federal National Mort. Assoc........ 55,000 4,070,000 First Security CP................... 168,750 3,944,531 KeyCorp (New)....................... 108,000 3,456,000 MBIA Inc............................ 54,000 3,540,375 Southtrust Corporation.............. 112,650 4,161,009 ----------- $ 40,336,249 ----------- FOOD -- 3.3% Dean Foods Company.................. 81,000 $ 3,305,813 Universal Foods Corp................ 144,000 3,951,000 ----------- $ 7,256,813 ----------- MACHINERY & EQUIPMENT -- 3.0% Caterpillar......................... 69,700 $ 3,206,200 Ingersoll Rand Co................... 73,950 3,471,028 ----------- $ 6,677,228 ----------- METAL PRODUCERS -- 0.4% Carpenter Technology................ 28,000 $ 950,250 ----------- METAL PRODUCTS MANUFACTURERS -- 6.0% Aeroquip-Vickers Inc................ 30,000 $ 898,125 Kaydon Corp......................... 110,000 4,406,875 Snap-on Inc......................... 110,600 3,850,263 Trinity Industries.................. 106,800 4,111,800 ----------- $ 13,267,063 ----------- OIL, GAS & COAL -- 1.0% Halliburton Company................. 71,500 $ 2,118,188 ----------- PRINTING & PUBLISHING -- 3.2% American Greetings Corp............. 76,900 $ 3,157,706 Banta (George) Corp................. 142,748 3,907,727 ----------- $ 7,065,433 ----------- RECREATION -- 3.6% Brinker International Inc.*......... 143,800 $ 4,152,225 Brunswick Corp...................... 45,000 1,113,750 Ryan's Family Steak Houses*......... 223,000 2,759,625 ----------- $ 8,025,600 ----------- RETAILERS -- 3.8% Ross Stores Inc..................... 96,700 $ 3,807,562 Wal-Mart Stores Inc................. 56,000 4,560,500 ----------- $ 8,368,062 ----------- TRANSPORTATION -- 5.9% Comair Holdings, Inc................ 127,400 $ 4,299,750 U.S. Freightways Corp............... 147,800 4,304,675 Werner Enterprises Inc.............. 255,750 4,523,578 ----------- $ 13,128,003 ----------- UTILITIES - 10.7% Aliant Comm Inc..................... 96,200 $ 3,932,175 Duke Energy Corp.................... 52,400 3,356,875 NIPSCO Industries Inc............... 127,400 3,877,738 Questar Corp........................ 167,000 3,235,625 SBC Communications Inc.............. 86,000 4,611,750 TECO Energy, Inc.................... 166,000 4,679,125 ----------- $ 23,693,288 ----------- MISCELLANEOUS -- 3.0% Kelly Services...................... 103,500 $ 3,286,125 Sierra Health Svcs*................. 160,000 3,370,000 ----------- $ 6,656,125 ----------- TOTAL EQUITY INTERESTS - 98.9% (identified cost, $163,579,471) $219,192,866 ------------ Reserve Funds -- 1.0% Face Amount ----------- American Express Corp., 4.702%, 1/4/99 (at amortized cost).............$2,235,000 $ 2,235,000 ----------- Total INVESTMENTS -- 99.9% (identified cost, $165,814,471) $221,427,866 OTHER ASSETS, LESS LIABILITIES -- 0.1% 228,825 ----------- NET ASSETS -- 100% $221,656,691 ============ * Non-income-producing security. See notes to financial statements JUNIOR BLUE CHIP EQUITIES PORTFOLIO (WJBC) PORTFOLIO OF INVESTMENTS December 31, 1998 ================================================================================ Shares Value -------- ------- Equity Interests -- 98.2% APPAREL -- 3.9% Quiksilver, Inc*.................... 45,200 $ 1,356,000 ----------- AUTOMOTIVE -- 4.9% Simpson Industries.................. 74,900 $ 725,594 Thor Industries, Inc................ 38,100 971,550 ----------- $ 1,697,144 ----------- CHEMICALS -- 5.6% AMCOL Int'l. Corp................... 76,200 $ 752,475 Learonal, Inc....................... 34,300 1,161,913 ----------- $ 1,914,388 ----------- CONSTRUCTION -- 5.8% Patrick Industries.................. 55,200 $ 848,700 Universal Forest Pr................. 56,400 1,131,525 ----------- $ 1,980,225 ----------- DRUGS, COSMETICS & HEALTHCARE -- 9.5% Arrow International Inc............. 12,000 $ 376,500 Empi, Inc*.......................... 65,900 1,647,500 Herbalife International Cl. A....... 35,000 498,750 Respironics, Inc*................... 36,400 729,139 ----------- $ 3,251,889 ----------- ELECTRICAL -- 3.1% C&D Technology Inc.................. 38,600 $ 1,061,500 ----------- ELECTRONICS -- 2.5% Technitrol, Inc..................... 26,800 $ 854,250 ----------- FINANCIAL -- 7.7% Centura Banks Inc................... 13,400 $ 996,625 One Valley Bancorp.................. 22,200 729,825 Raymond James Financial Corp........ 42,900 906,262 ----------- $ 2,632,712 ----------- MACHINERY & EQUIPMENT -- 2.8% CLARCOR Inc......................... 48,600 $ 972,000 ----------- METAL PRODUCERS -- 2.5% Imco Recycling Inc.................. 56,700 $ 875,306 ----------- METAL PRODUCTS MANUFACTURERS -- 2.6% Regal Beloit Corp................... 38,200 $ 878,600 ----------- PRINTING & PUBLISHING -- 5.5% Bowne & Co.......................... 27,500 $ 491,562 Merrill Corp........................ 27,100 523,369 Standard Register................... 27,800 860,063 ----------- $ 1,874,994 ----------- RECREATION -- 8.8% Arctic Cat, Inc..................... 104,200 $ 1,061,536 Buffetts Inc.*...................... 74,700 891,731 Sonic Corp.*........................ 43,050 1,070,869 ----------- $ 3,024,136 ----------- RETAILERS -- 9.1% The Buckle Inc...................... 42,000 $ 1,008,000 Dress Barn Inc*..................... 64,900 985,669 Ruddick Corp........................ 49,100 1,129,300 ----------- $ 3,122,969 ----------- MISCELLANEOUS -- 23.9% Bush Industries Cl. A............... 56,800 $ 706,450 Caci International, Inc............. 47,300 798,188 Franklin Covey Co*.................. 47,200 790,600 Gallagher (Arthur J.)............... 23,600 1,041,350 Lawson Prods. Inc................... 33,500 770,500 Myers Industries.................... 35,950 1,029,069 TBC Corp.*.......................... 122,000 869,250 Tetra Tech Inc.*.................... 50,375 1,363,273 World Fuel Services Corp............ 76,400 821,300 ----------- $ 8,189,980 ----------- Total equity interests -- 98.2% (identified cost, $32,255,483) $ 33,686,094 ----------- Reserve Funds -- 3.1% Face Amount ------------ American Express Corp., 4.702%, 1/4/99 (at amortized cost).............$1,050,000 $ 1,050,000 ----------- Total INVESTMENTS -- 101.3% (identified cost, $33,305,483) $ 34,736,094 OTHER ASSETS, LESS LIABILITIES -- (1.3%) (432,607) ----------- NET ASSETS -- 100.0% $ 34,303,487 ============ * Non-income-producing security. See notes to financial statements INTERNATIONAL BLUE CHIP EQUITIES PORTFOLIO (WIBC) PORTFOLIO OF INVESTMENTS December 31, 1998 ================================================================================ Shares Value ------ ------ Equity Interests -- 96.6% ARGENTINA -- 0.9% Telecom Argentina Stet Ord.......... 32,800 $ 902,000 YPF Sociedad Anonima................ 37,800 1,056,038 ----------- $ 1,958,038 ----------- AUSTRALIA -- 2.4% Australian Gas & Light Co........... 388,780 $ 2,798,954 Lend Lease Corp. Ltd................ 165,512 2,230,274 ----------- $ 5,029,228 ----------- AUSTRIA -- 0.4% Bank Austria AG..................... 16,200 $ 823,151 ----------- BRAZIL -- 0.7% Embratel Partipacoes................ 21,400 $ 298,263 Telecelular Sul Particip............ 2,140 37,316 Telecentro Sul Participa............ 4,280 178,958 Telenorte Leste Participa........... 21,400 266,163 Telesp Celular Participa............ 8,560 149,800 Telesp Participacoes SA ADR......... 21,400 473,475 Telesudeste Celular Part............ 4,280 88,543 ----------- $ 1,492,518 ----------- CANADA -- 6.4% Bombardier Inc. Class B............. 178,700 $ 2,559,609 Loblaw Companies Ltd................ 105,100 2,559,174 Magna Int'l. Inc. Cl. A............. 35,490 2,204,344 Power Financial Corp................ 126,600 2,802,456 Teleglobe Inc....................... 97,500 3,491,339 ----------- $ 13,616,922 ----------- DENMARK -- 2.2% Coloplast B A/S..................... 17,100 $ 2,031,822 Novo-Nordisk A/S.................... 19,300 2,547,354 ----------- $ 4,579,176 ----------- FINLAND -- 1.8% Finnlines Oy........................ 21,600 $ 923,484 Nokia Oy a Shares................... 24,000 2,918,248 ----------- $ 3,841,732 ----------- FRANCE -- 13.1% Alcatel............................. 13,500 $ 1,649,518 Axa Company FRF60................... 21,900 3,168,810 Carrefour Supermarche............... 4,300 3,240,747 Essilor International............... 5,700 2,240,086 L'Air Liquide SA.................... 6,778 1,241,059 LeGrand SA.......................... 9,900 2,619,132 Michelin B. French Reg. Shares...... 43,700 1,744,721 Pinault-Printemps Redoute SA........ 12,600 2,403,859 Promodes............................ 5,400 3,920,257 Sagem SA............................ 3,420 2,260,450 Technip............................. 11,130 1,045,798 TV Francaise........................ 12,700 2,257,324 ----------- $ 27,791,761 ----------- GERMANY -- 5.7% BASF AG............................. 58,400 $ 2,226,763 Bayerische Motoren Werke AG......... 4,040 3,099,354 Gea Pref. Shares.................... 62,000 1,486,811 Gehe AG............................. 42,440 2,926,019 Lufthansa AG........................ 104,800 2,312,134 ----------- $ 12,051,081 ----------- HONG KONG -- 1.3% HSBC Holdings PLC................... 26,000 $ 647,735 Henderson Land Development.......... 133,000 688,434 Johnson Electric Holdings Ltd....... 538,000 1,381,980 ----------- $ 2,718,149 ----------- IRELAND -- 1.9% Bank of Ireland..................... 78,994 $ 1,731,706 CRH PLC............................. 85,600 1,453,204 Greencore PLC....................... 50,000 225,692 Waterford Wedgewood - Uni........... 780,000 634,261 ----------- $ 4,044,863 ----------- ITALY -- 6.5% Alleanza Assicurazioni SPA.......... 178,000 $ 2,519,368 Assicurazione Generali Itl.......... 80,000 3,341,501 Benetton Group......................1,370,000 2,773,172 Eni SPA............................. 383,000 2,515,002 Telecom Italia Mobile............... 360,000 2,659,249 ----------- $ 13,808,292 ----------- JAPAN -- 9.9% Bridgestone Corporation............. 103,000 $ 2,327,094 Canon Inc........................... 79,000 1,680,481 Fuji Photo Film..................... 54,000 1,997,710 Honda Motor Co., Ltd................ 65,000 2,124,108 Hoya Corp........................... 53,000 2,567,603 Nintendo Corp. Ltd.................. 22,000 2,112,217 Sony Corp........................... 23,000 1,667,313 TDK Corp............................ 26,000 2,365,718 Toyota Motor Co..................... 77,000 2,082,181 York-Benimaru Co. Ltd............... 69,000 2,181,890 ----------- $ 21,106,315 ----------- MEXICO -- 2.6% Cemex S.A........................... 258,000 $ 556,113 Cifra S.A........................... 669,740 811,396 Grupo Carso S.A. de C.V............ 283,000 960,000 Grupo Industrial Saltillo A......... 150,000 374,054 Grupo Industrial Maseca-B........... 907,000 732,559 Organizacion Soriana SA-B........... 325,000 1,049,975 Telefonos de Mexico................. 21,400 1,041,913 ----------- $ 5,526,010 ----------- NETHERLANDS -- 14.2% Abn Amro Holdings................... 101,061 $ 2,122,566 Aegon NV............................ 28,345 3,475,492 Cap Gemini.......................... 31,100 2,166,268 CSM N.V. Cert....................... 46,299 2,668,587 Fortis Amev NV...................... 37,000 3,061,201 Getronics N.V....................... 31,925 1,578,681 Hagemeyer N.V....................... 48,023 1,751,676 ING Groep N.V....................... 50,786 3,091,932 Internatio-Muller NV................ 36,400 899,984 Numico NV........................... 73,071 3,477,351 Stork N.V........................... 32,717 746,296 TNT Post Group*..................... 59,185 1,903,915 Unilever N.V........................ 25,800 2,201,787 Verenigde Nederlandse............... 26,000 978,784 ----------- $ 30,124,520 ----------- PORTUGAL-- 0.8% Banco Espirito Santo - Reg.......... 31,867 $ 987,129 Portugal Telecom S.A. ADR........... 17,000 758,625 ----------- $ 1,745,754 ----------- SINGAPORE -- 1.1% City Developments................... 150,000 $ 649,606 Overseas Chinese Bkng Corp.......... 128,000 868,322 United Overseas Bank-Foreign........ 128,000 821,805 ----------- $ 2,339,733 ----------- SOUTH AFRICA -- 0.9% Sasol Beperk Limited................ 87,500 $ 330,525 South African Breweries LT.......... 46,526 783,563 Tiger Oats Limited.................. 82,350 810,882 ----------- $ 1,924,970 ----------- SPAIN -- 6.7% Banco Bilbao Vizcaya SA............. 147,900 $ 2,317,937 Bankinter - Banco Interc Esp........ 72,000 2,652,391 Endesa S.A.......................... 82,400 2,182,320 Gas Natural SDG S.A................. 27,000 2,938,297 Repsol S.A.......................... 55,740 2,972,119 Telefonica.......................... 27,500 1,222,265 Telefonica de Espana................ 27,500 24,407 ----------- $ 14,309,736 ----------- SWEDEN -- 1.4% Ericsson AB B Free.................. 91,300 $ 2,168,793 Svedala Industri AB-Free............ 53,700 779,913 ----------- $ 2,948,706 ----------- SWITZERLAND -- 6.3% Alusuisse-Lonza Group Ltd........... 2,450 $ 2,852,361 Nestle SA ADR....................... 20,600 2,242,261 Novartis AG-Reg..................... 1,300 2,554,027 Sch. Rueckversicherungs-Ges......... 1,150 2,996,544 The Swatch Group AG................. 17,600 2,634,941 ----------- $ 13,280,134 ----------- UNITED KINGDOM -- 9.4% Abbey National...................... 97,000 $ 2,071,703 Bodycote International PLC.......... 72,700 1,004,375 Cable & Wireless PLC ADR........... 84,300 3,098,025 Kingfisher PLC...................... 259,000 2,795,917 Kwik-Fit Holdings PLC............... 315,100 2,517,804 Siebe PLC........................... 543,888 2,139,120 UNITED KINGDOM - continued Tomkins PLC......................... 449,509 2,114,797 Vodafone Group PLC.................. 158,031 2,559,584 Wolseley PLC........................ 254,394 1,604,234 ----------- $ 19,905,559 ----------- TOTAL EQUITY INTERESTS - 96.6% (identified cost, $163,181,603) $204,966,348 ------------ Reserve Funds -- 3.2% Face Amount ------------- American Express Corp., 4.702%, 01/04/99 (at amortized cost).............$6,775,000 $ 6,775,000 ----------- Total INVESTMENTS -- 99.8% (identified cost, $169,956,603) $211,741,348 OTHER ASSETS, LESS LIABILITIES -- 0.2% 489,194 ----------- NET ASSETS -- 100% $212,230,542 ============ * Non-income-producing security. ADR: American Depository Receipts See notes to financial statements U.S. GOVERNMENT NEAR TERM PORTFOLIO (WNTB) PORTFOLIO OF INVESTMENTS December 31, 1998 ================================================================================
Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity(1) - -------------------------------------------------------------------------------------------------------------------------------- GOVERNMENT INTERESTS $ 850,000 Federal Home Loan Bank 5.120% 11/9/99 100.000 $ 850,000 5.12% 5.26% 1,950,000 Federal Home Loan Bank 4.860% 10/5/01 99.516 1,940,562 4.88% 4.89% 2,000,000 Federal Home Loan Bank 5.675% 8/18/03 102.125 2,042,500 5.56% 5.08% 3,500,000 Federal Home Loan Bank 5.125% 9/15/03 99.969 3,498,915 5.13% 5.08% 1,000,000 Federal Home Loan Bank 5.535% 11/10/03 98.875 988,750 5.60% 6.00% 500,000 Federal Home Loan Bank 5.375% 12/8/03 99.375 496,875 5.41% 5.54% 1,500,000 Federal Home Loan Bank 5.430% 6/8/01 100.047 1,500,705 5.43% - 1,000,000 FNMA 4.750% 11/14/03 98.719 987,190 4.81% 5.01% 1,500,000 FNMA 5.250% 11/19/01 100.031 1,500,465 5.25% 5.42% 1,500,000 FNMA 5.350% 10/27/03 98.641 1,479,615 5.42% 5.55% 1,000,000 FNMA 5.310% 9/15/00 100.016 1,000,160 5.31% - 1,925,000 FNMA 5.900% 7/9/03 101.375 1,951,469 5.82% 5.60% 1,300,000 FNMA 6.170% 8/5/03 100.062 1,300,806 6.17% 6.02% 1,500,000 FNMA 5.940% 8/18/03 100.531 1,507,965 5.91% 5.68% 1,500,000 FNMA 5.860% 8/20/03 101.297 1,519,455 5.78% 5.43% 1,500,000 FNMA 5.910% 8/25/03 100.719 1,510,785 5.87% 5.68% 2,100,000 U.S. Treasury Notes 7.000% 4/15/99 100.656 2,113,775 6.95% 4.65% 1,650,000 U.S. Treasury Notes 6.375% 7/15/99 100.922 1,665,213 6.32% 4.59% 2,000,000 U.S. Treasury Notes 8.000% 8/15/99 102.000 2,040,000 7.84% 4.70% 2,550,000 U.S. Treasury Notes 5.750% 9/30/99 100.797 2,570,324 5.70% 4.62% 2,000,000 U.S. Treasury Notes 7.875% 11/15/99 102.687 2,053,740 7.67% 4.69% 4,500,000 U.S. Treasury Notes 5.375% 1/31/00 100.750 4,533,750 5.33% 4.62% 2,000,000 U.S. Treasury Notes 5.875% 2/15/00 101.297 2,025,940 5.80% 4.66% 1,500,000 U.S. Treasury Notes 8.500% 2/15/00 104.109 1,561,635 8.16% 4.68% 11,100,000 U.S. Treasury Notes 7.125% 2/29/00 102.687 11,398,257 6.94% 4.69% 7,000,000 U.S. Treasury Notes 6.250% 5/31/00 102.141 7,149,870 6.12% 4.66% 8,000,000 U.S. Treasury Notes 6.000% 8/15/00 102.062 8,164,960 5.88% 4.64% 2,500,000 U.S. Treasury Notes 5.625% 11/30/00 101.781 2,544,525 5.53% 4.64% 1,200,000 U.S. Treasury Notes 5.500% 12/31/00 101.672 1,220,064 5.41% 4.61% 9,650,000 U.S. Treasury Notes 7.500% 11/15/01 107.531 10,376,742 6.97% 4.64% 3,100,000 U.S. Treasury Notes 6.250% 2/28/02 104.516 3,239,996 5.98% 4.68% 1,500,000 U.S. Treasury Notes 6.000% 7/31/02 104.219 1,563,285 5.76% 4.69% ----------- Total Government Interests (identified cost, $86,739,160) - 95.7% $88,298,293 ----------- COMMERCIAL PAPER $ 380,000 AMERICAN EXPRESS CORP 4.702% 1/4/99 $ 380,000 4.70% 4.70% 2,000,000 FNMA 5.500% 2/12/99 2,000,000 5.50% 5.69% ----------- Total Commercial Paper - 2.6% $ 2,380,000 ------------ Total Investments (identified cost, $89,119,160) -- 98.3% $90,678,293 Other Assets, Less Liabilities -- 1.7% 1,521,682 ----------- Net Assets -- 100.0% $92,199,975 ============ Average Maturity -- 1.9 Years (1) (1) Unaudited.
U.S. TREASURY PORTFOLIO (WUSTB) PORTFOLIO OF INVESTMENTS December 31, 1998 ================================================================================
Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity(1) - --------------------------------------------------------------------------------------------------------------------------------- $ 5,500,000 U. S. Treasury Notes 5.875% 11/15/99 $101.031 $ 5,556,705 5.82% 4.65% 2,700,000 U. S. Treasury Notes 5.375% 1/31/00 100.750 2,720,250 5.33% 4.62% 3,400,000 U. S. Treasury Notes 6.250% 5/31/00 102.141 3,472,794 6.12% 4.66% 4,450,000 U. S. Treasury Notes 5.250% 1/31/01 101.234 4,504,913 5.19% 4.61% 6,550,000 U. S. Treasury Notes 6.500% 5/15/05 109.594 7,178,407 5.93% 4.74% 7,050,000 U. S. Treasury Notes 6.500% 8/15/05 109.906 7,748,373 5.91% 4.73% 3,200,000 U. S. Treasury Notes 5.875% 11/15/05 106.672 3,413,504 5.51% 4.70% 3,600,000 U. S. Treasury Notes 5.625% 2/15/06 105.469 3,796,884 5.33% 4.66% 3,500,000 U. S. Treasury Notes 6.500% 10/15/06 110.922 3,882,270 5.86% 4.76% 1,500,000 U. S. Treasury Notes 6.250% 2/15/07 109.687 1,645,305 5.70% 4.76% 1,500,000 U. S. Treasury Notes 6.625% 5/15/07 112.453 1,686,795 5.89% 4.77% 3,000,000 U. S. Treasury Notes 6.125% 8/15/07 109.219 3,276,570 5.61% 4.78% 600,000 U.S Treasury Bonds 11.625% 11/15/04 134.687 808,122 8.63% 4.79% 1,000,000 U.S Treasury Bonds 10.000% 5/15/10 127.641 1,276,410 7.83% 6.51% 1,300,000 U.S Treasury Bonds 14.000% 11/15/11 158.422 2,059,486 8.84% 7.01% 6,100,000 U.S Treasury Bonds 7.250% 5/15/16 121.141 7,389,601 5.98% 5.36% 2,000,000 U.S Treasury Bonds 6.250% 8/15/23 111.766 2,235,320 5.59% 5.37% 2,200,000 U.S Treasury Bonds 6.000% 2/15/26 109.078 2,399,716 5.50% 5.34% ----------- Total Investments (identified cost, $59,980,205) - 96.6% $ 65,051,425 Other Assets, less Liabilities - 3.4% 2,278,228 ----------- Net Assets - 100.0% $ 67,329,653 ============ Average Maturity - 8.02 Years (1) (1) Unaudited.
See notes to financial statements CURRENT INCOME PORTFOLIO (WCIF) PORTFOLIO OF INVESTMENTS December 31, 1998 ================================================================================
Face Coupon Maturity Market Current Amount Description Rate Date Price Value Yield(1) - ---------------------------------------------------------------------------------------------------------------- GOVERNMENT INTERESTS - 95.3% $ 2,068 GNMA POOL # 000434 8.000% 4/15/01 $101.538 $ 2,101 7.88% 495 GNMA POOL # 000473 7.500% 4/15/01 101.402 502 7.40% 910,884 GNMA POOL # 000545 7.500% 12/20/22 102.812 936,498 7.29% 1,486,872 GNMA POOL # 000723 7.500% 1/20/23 102.812 1,528,684 7.29% 1,250,748 GNMA POOL # 001268 8.000% 7/20/23 103.843 1,298,815 7.70% 1,591 GNMA POOL # 001408 6.500% 3/15/02 100.364 1,598 6.48% 69,835 GNMA POOL # 001596 9.000% 4/20/21 106.687 74,505 8.44% 422,767 GNMA POOL # 001788 7.000% 7/20/24 101.875 430,695 6.87% 636,393 GNMA POOL # 002218 7.500% 5/20/26 102.749 653,888 7.30% 1,893,218 GNMA POOL # 002268 7.500% 8/20/26 102.718 1,944,676 7.30% 998,686 GNMA POOL # 002671 6.000% 11/20/28 98.625 984,954 6.08% 2,700,000 GNMA POOL # 002687 6.000% 12/20/28 98.625 2,662,875 6.08% 1,438 GNMA POOL # 003026 8.000% 1/15/04 102.662 1,477 7.79% 853 GNMA POOL # 003331 8.000% 1/15/04 102.662 876 7.79% 2,614 GNMA POOL # 004183 8.000% 7/15/04 103.151 2,696 7.76% 1,842 GNMA POOL # 004433 9.000% 11/15/04 104.718 1,929 8.59% 501,974 GNMA POOL # 004702 7.500% 2/15/26 103.093 517,500 7.27% 4,532 GNMA POOL # 005466 8.500% 3/15/05 104.448 4,734 8.14% 457 GNMA POOL # 005561 8.500% 4/15/05 103.806 475 8.19% 2,030,361 GNMA POOL # 005601 8.000% 11/15/26 103.937 2,110,297 7.70% 1,825 GNMA POOL # 005687 7.250% 2/15/05 102.782 1,876 7.05% 2,217 GNMA POOL # 005910 7.250% 2/15/05 102.782 2,280 7.05% 11,792 GNMA POOL # 007003 8.000% 7/15/05 103.598 12,216 7.72% 1,545 GNMA POOL # 007319 6.500% 10/15/04 100.583 1,554 6.46% 4,964 GNMA POOL # 009106 8.250% 5/15/06 104.773 5,202 7.87% 7,448 GNMA POOL # 009889 7.250% 2/15/06 103.268 7,692 7.02% 900 GNMA POOL # 011191 7.250% 4/15/06 103.460 931 7.01% 3,809 GNMA POOL # 012526 8.000% 11/15/06 104.005 3,962 7.69% 952,441 GNMA POOL # 044190 8.000% 12/15/26 103.937 989,939 7.70% 95,836 GNMA POOL # 151443 10.000% 3/15/16 108.085 103,585 9.25% 19,720 GNMA POOL # 153564 10.000% 4/15/16 108.085 21,315 9.25% 133,074 GNMA POOL # 172558 9.500% 8/15/16 107.437 142,971 8.84% 167,722 GNMA POOL # 176992 8.000% 11/15/16 104.906 175,951 7.63% 35,025 GNMA POOL # 177784 8.000% 10/15/16 104.906 36,744 7.63% 45,606 GNMA POOL # 180033 9.500% 9/15/16 107.437 48,998 8.84% 4,899 GNMA POOL # 188060 9.500% 10/15/16 107.437 5,264 8.84% 4,857 GNMA POOL # 190959 8.500% 2/15/17 106.831 5,189 7.96% 78,806 GNMA POOL # 192357 8.000% 4/15/17 104.825 82,609 7.63% 336,961 GNMA POOL # 194057 8.500% 4/15/17 106.831 359,979 7.96% 71,299 GNMA POOL # 194287 9.500% 3/15/17 107.412 76,584 8.84% 488,503 GNMA POOL # 194926 8.500% 2/15/17 106.831 521,873 7.96% 10,470 GNMA POOL # 196063 8.500% 3/15/17 106.831 11,185 7.96% 232,020 GNMA POOL # 203369 8.000% 12/15/16 104.906 243,403 7.63% 15,481 GNMA POOL # 206740 10.000% 10/15/17 108.343 16,774 9.23% 53,187 GNMA POOL # 206762 9.000% 4/15/21 107.405 57,126 8.38% 65,037 GNMA POOL # 207019 8.000% 3/15/17 104.825 68,176 7.63% 14,017 GNMA POOL # 208076 8.000% 4/15/17 104.825 14,694 7.63% 11,039 GNMA POOL # 210520 10.500% 8/15/17 109.631 12,103 9.58% 10,871 GNMA POOL # 210618 9.500% 4/15/17 107.412 11,677 8.84% 81,982 GNMA POOL # 211013 9.000% 1/15/20 107.468 88,105 8.37% $ 73,565 GNMA POOL # 211231 8.500% 5/15/17 $106.831 $ 78,591 7.96% 61,538 GNMA POOL # 212601 8.500% 6/15/17 106.831 65,742 7.96% 13,551 GNMA POOL # 218420 8.500% 11/15/21 106.531 14,437 7.98% 187,334 GNMA POOL # 219335 8.000% 5/15/17 104.825 196,373 7.63% 169,048 GNMA POOL # 220703 8.000% 5/15/17 104.825 177,205 7.63% 22,132 GNMA POOL # 220917 8.500% 4/15/17 106.831 23,645 7.96% 318,589 GNMA POOL # 222112 8.000% 1/15/22 104.219 332,030 7.68% 31,395 GNMA POOL # 223126 10.000% 8/15/17 108.343 34,015 9.23% 88,368 GNMA POOL # 223133 9.500% 7/15/17 107.412 94,919 8.84% 18,816 GNMA POOL # 223348 10.000% 8/15/18 108.411 20,400 9.22% 5,624 GNMA POOL # 223588 10.000% 12/15/18 108.183 6,085 9.24% 13,856 GNMA POOL # 224078 10.000% 7/15/18 108.411 15,022 9.22% 67,069 GNMA POOL # 228308 10.000% 1/15/19 108.343 72,665 9.23% 44,179 GNMA POOL # 228483 9.500% 9/15/19 107.362 47,432 8.85% 28,645 GNMA POOL # 230223 9.500% 4/15/18 107.387 30,762 8.85% 23,017 GNMA POOL # 235000 10.000% 1/15/18 108.343 24,938 9.23% 36,956 GNMA POOL # 245580 9.500% 7/15/18 107.387 39,686 8.85% 24,208 GNMA POOL # 247473 10.000% 9/15/18 108.085 26,165 9.25% 92,905 GNMA POOL # 247681 9.000% 11/15/19 107.530 99,902 8.37% 21,210 GNMA POOL # 247872 10.000% 9/15/18 108.411 22,995 9.22% 29,810 GNMA POOL # 250412 8.000% 3/15/18 104.743 31,224 7.64% 45,541 GNMA POOL # 251241 9.500% 6/15/18 107.387 48,905 8.85% 42,281 GNMA POOL # 258911 9.500% 9/15/18 107.387 45,405 8.85% 38,732 GNMA POOL # 260999 9.500% 9/15/18 107.387 41,594 8.85% 25,407 GNMA POOL # 263439 10.000% 2/15/19 108.468 27,559 9.22% 51,204 GNMA POOL # 265267 9.500% 8/15/20 107.337 54,961 8.85% 24,413 GNMA POOL # 266983 10.000% 2/15/19 108.468 26,481 9.22% 16,597 GNMA POOL # 273690 9.500% 8/15/19 107.362 17,820 8.85% 31,088 GNMA POOL # 274489 9.500% 12/15/19 107.362 33,377 8.85% 19,510 GNMA POOL # 275456 9.500% 8/15/19 107.362 20,947 8.85% 65,786 GNMA POOL # 275538 9.500% 1/15/20 107.337 70,613 8.85% 39,713 GNMA POOL # 277205 9.000% 12/15/19 107.530 42,704 8.37% 25,443 GNMA POOL # 285467 9.500% 7/15/20 107.337 27,311 8.85% 67,641 GNMA POOL # 285744 9.000% 5/15/20 107.468 72,693 8.37% 63,491 GNMA POOL # 286556 9.000% 3/15/20 107.468 68,233 8.37% 1,034 GNMA POOL # 287999 9.000% 9/15/20 107.468 1,112 8.37% 90,273 GNMA POOL # 289092 9.000% 4/15/20 107.468 97,015 8.37% 8,702 GNMA POOL # 289949 8.500% 7/15/21 106.531 9,271 7.98% 18,538 GNMA POOL # 290700 9.000% 8/15/20 107.468 19,923 8.37% 21,464 GNMA POOL # 291933 9.500% 7/15/20 107.337 23,039 8.85% 29,560 GNMA POOL # 293666 8.500% 6/15/21 106.531 31,492 7.98% 1,041 GNMA POOL # 294209 9.000% 7/15/21 107.405 1,119 8.38% 9,570 GNMA POOL # 297345 8.500% 8/15/20 106.606 10,203 7.97% 18,906 GNMA POOL # 301017 8.500% 6/15/21 106.531 20,141 7.98% 58,504 GNMA POOL # 301366 8.500% 6/15/21 106.531 62,326 7.98% 115,604 GNMA POOL # 302713 9.000% 2/15/21 107.405 124,165 8.38% 10,945 GNMA POOL # 302723 8.500% 5/15/21 106.531 11,660 7.98% 63,052 GNMA POOL # 302781 8.500% 6/15/21 106.531 67,171 7.98% 72,361 GNMA POOL # 302933 8.500% 6/15/21 106.531 77,087 7.98% 100,662 GNMA POOL # 304512 8.500% 5/15/21 106.531 107,237 7.98% 133,494 GNMA POOL # 305091 9.000% 7/15/21 107.405 143,379 8.38% $ 6,300 GNMA POOL # 306669 8.000% 7/15/21 $104.500 $ 6,584 7.66% 95,425 GNMA POOL # 306693 8.500% 9/15/21 106.531 101,658 7.98% 86,019 GNMA POOL # 308792 9.000% 7/15/21 107.405 92,390 8.38% 49,721 GNMA POOL # 311087 8.500% 7/15/21 106.531 52,968 7.98% 15,609 GNMA POOL # 314222 8.500% 4/15/22 106.343 16,600 7.99% 108,268 GNMA POOL # 314581 9.500% 10/15/21 107.312 116,185 8.85% 251,135 GNMA POOL # 315187 8.000% 6/15/22 104.219 261,731 7.68% 473,284 GNMA POOL # 315388 8.000% 2/15/22 104.219 493,252 7.68% 366,534 GNMA POOL # 315754 8.000% 1/15/22 104.219 381,999 7.68% 541,417 GNMA POOL # 316240 8.000% 1/15/22 104.219 564,260 7.68% 108,138 GNMA POOL # 316615 8.500% 11/15/21 106.531 115,201 7.98% 139,322 GNMA POOL # 317069 8.500% 12/15/21 106.531 148,422 7.98% 253,133 GNMA POOL # 317351 8.000% 5/15/22 104.219 263,813 7.68% 277,786 GNMA POOL # 317358 8.000% 5/15/22 104.219 289,507 7.68% 265,388 GNMA POOL # 318776 8.000% 2/15/22 104.219 276,585 7.68% 5,877 GNMA POOL # 318793 8.500% 2/15/22 106.343 6,251 7.99% 320,604 GNMA POOL # 319441 8.500% 4/15/22 106.343 340,940 7.99% 162,949 GNMA POOL # 321806 8.000% 5/15/22 104.219 169,824 7.68% 369,913 GNMA POOL # 321807 8.000% 5/15/22 104.219 385,520 7.68% 234,173 GNMA POOL # 321976 8.500% 1/15/22 106.343 249,027 7.99% 448,069 GNMA POOL # 323226 8.000% 6/15/22 104.219 466,973 7.68% 347,415 GNMA POOL # 323929 8.000% 2/15/22 104.219 362,072 7.68% 328,450 GNMA POOL # 325165 8.000% 6/15/22 104.219 342,308 7.68% 186,531 GNMA POOL # 325651 8.000% 6/15/22 104.219 194,401 7.68% 538,665 GNMA POOL # 329540 7.500% 8/15/22 103.187 555,833 7.27% 807,661 GNMA POOL # 329982 7.500% 2/15/23 103.187 833,402 7.27% 480,560 GNMA POOL # 331361 8.000% 11/15/22 104.219 500,835 7.68% 553,926 GNMA POOL # 335746 8.000% 10/15/22 104.219 577,297 7.68% 344,722 GNMA POOL # 335950 8.000% 10/15/22 104.219 359,266 7.68% 1,860,263 GNMA POOL # 348103 7.000% 6/15/23 102.343 1,903,849 6.84% 583,812 GNMA POOL # 348213 6.500% 8/15/23 101.093 590,194 6.43% 1,283,360 GNMA POOL # 350372 7.000% 4/15/23 102.343 1,313,429 6.84% 1,064,584 GNMA POOL # 350659 7.500% 6/15/23 103.187 1,098,513 7.27% 1,428,099 GNMA POOL # 350938 6.500% 8/15/23 101.093 1,443,709 6.43% 1,356,405 GNMA POOL # 352001 6.500% 12/15/23 101.093 1,371,231 6.43% 638,956 GNMA POOL # 362174 6.500% 1/15/24 101.062 645,742 6.43% 683,183 GNMA POOL # 362628 7.000% 8/15/23 102.343 699,191 6.84% 789,556 GNMA POOL # 363429 7.000% 8/15/23 102.343 808,056 6.84% 767,921 GNMA POOL # 367414 6.000% 11/15/23 99.312 762,638 6.04% 1,332,468 GNMA POOL # 367806 6.500% 9/15/23 101.093 1,347,033 6.43% 1,537,214 GNMA POOL # 368238 7.000% 12/15/23 102.343 1,573,231 6.84% 2,018,283 GNMA POOL # 368502 7.000% 2/15/24 102.343 2,065,572 6.84% 1,533,628 GNMA POOL # 370773 6.000% 11/15/23 99.312 1,523,077 6.04% 2,456,310 GNMA POOL # 372050 6.500% 2/15/24 101.062 2,482,397 6.43% 893,685 GNMA POOL # 372379 8.000% 10/15/26 103.937 928,870 7.70% 978,247 GNMA POOL # 372468 6.500% 12/15/27 101.000 988,030 6.44% 2,539,989 GNMA POOL # 376218 7.500% 8/15/25 103.093 2,618,551 7.27% 915,971 GNMA POOL # 376400 6.500% 2/15/24 101.062 925,699 6.43% 650,640 GNMA POOL # 398251 7.500% 9/15/25 103.093 670,765 7.27% 1,196,794 GNMA POOL # 405558 7.500% 1/15/26 103.093 1,233,812 7.27% 592,412 GNMA POOL # 414736 7.500% 11/15/25 103.093 610,736 7.27% $ 686,080 GNMA POOL # 417225 7.500% 1/15/26 $103.093 $ 707,301 7.27% 1,180,902 GNMA POOL # 417276 7.000% 2/15/26 102.312 1,208,205 6.84% 3,328,514 GNMA POOL # 420707 7.000% 2/15/26 102.312 3,405,470 6.84% 684,154 GNMA POOL # 421829 7.500% 4/15/26 103.093 705,315 7.27% 1,325,195 GNMA POOL # 422506 6.500% 3/15/26 101.031 1,338,858 6.43% 130,444 GNMA POOL # 423114 7.000% 9/15/27 102.312 133,460 6.84% 734,596 GNMA POOL # 424173 7.500% 3/15/26 103.093 757,318 7.27% 477,469 GNMA POOL # 427199 7.000% 12/15/27 102.312 488,509 6.84% 1,577,854 GNMA POOL # 430279 7.000% 10/15/27 102.312 1,614,335 6.84% 420,547 GNMA POOL # 431036 8.000% 7/15/26 103.937 437,105 7.70% 937,795 GNMA POOL # 436214 6.500% 2/15/13 101.875 955,379 6.38% 1,002,898 GNMA POOL # 436723 7.500% 11/15/26 103.093 1,033,918 7.27% 2,959,716 GNMA POOL # 436777 7.000% 4/15/27 102.312 3,028,145 6.84% 2,186,616 GNMA POOL # 440166 7.000% 2/15/27 102.312 2,237,171 6.84% 962,146 GNMA POOL # 442063 7.000% 10/15/26 102.312 984,391 6.84% 784,038 GNMA POOL # 442193 7.500% 12/15/26 103.093 808,289 7.27% 989,336 GNMA POOL # 442996 6.000% 6/15/13 100.718 996,440 5.96% 940,028 GNMA POOL # 446943 7.000% 4/15/27 102.312 961,762 6.84% 3,145,726 GNMA POOL # 448490 7.500% 3/15/27 103.093 3,243,024 7.27% 1,491,277 GNMA POOL # 449176 6.500% 7/15/28 101.000 1,506,191 6.44% 1,493,257 GNMA POOL # 457100 6.500% 11/15/28 101.000 1,508,190 6.44% 2,582,894 GNMA POOL # 458672 6.500% 1/15/28 101.000 2,608,723 6.44% 1,367,233 GNMA POOL # 458712 7.000% 11/15/27 102.312 1,398,844 6.84% 466,953 GNMA POOL # 460698 7.000% 10/15/27 102.312 477,749 6.84% 1,463,890 GNMA POOL # 460726 6.500% 12/15/27 101.000 1,478,529 6.44% 1,856,301 GNMA POOL # 462363 7.000% 11/15/27 102.312 1,899,219 6.84% 947,774 GNMA POOL # 462444 6.500% 12/15/27 101.000 957,253 6.44% 1,454,571 GNMA POOL # 462623 6.500% 3/15/28 101.000 1,469,118 6.44% 959,272 GNMA POOL # 468173 7.000% 8/15/28 102.312 981,451 6.84% 980,744 GNMA POOL # 469226 6.500% 3/15/28 101.000 990,552 6.44% 1,996,163 GNMA POOL # 469615 6.500% 10/15/28 101.000 2,016,125 6.44% 1,957,213 GNMA POOL # 472028 6.500% 5/15/28 101.000 1,976,786 6.44% 1,491,576 GNMA POOL # 480030 6.500% 6/15/28 101.000 1,506,492 6.44% 1,981,216 GNMA POOL # 484195 6.500% 8/15/28 101.000 2,001,029 6.44% 1,010,000 GNMA POOL # 488924 6.500% 11/15/28 101.000 1,020,100 6.44% 2,013,342 GNMA POOL # 780429 7.500% 9/15/26 103.093 2,075,614 7.27% 832,487 GNMA POOL # 780518 7.000% 6/15/26 102.343 851,992 6.84% 1,367,217 GNMA POOL # 410915 6.500% 2/15/26 101.031 1,381,312 6.43% ------------- Total Government Interests (identified cost, $106,285,436) - 95.3% $108,428,001 COMMERCIAL PAPER - 4.1% $ 4,630,000 AMERICAN EXPRESS CORP 4.702% 1/04/99 4,630,000 ----------- Total Investments (identified cost $110,915,436) - 99.4% $113,058,001 Other Assets, less Liabilities - 0.6% 648,751 ----------- Net Assets - 100.0% $113,706,752 ============ (1) Unaudited. See notes to financial statements
The Wright Managed Blue Chip Investment Funds 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 and Trustee Dorcas R. Hardy, Trustee Leland Miles, Trustee Lloyd F. Pierce, Trustee George R. Prefer, Trustee Richard E. Taber, 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 200 Clarendon Street Boston, Massachusetts 02116 Transfer and Dividend Disbursing Agent First Data Investor Services Group Wright Managed Investment Funds P.O. Box 5156 Westborough, Massachusetts 01581-9698 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-----