-----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, AVSbA6IrKxYI/VKn6qm/cDa6yw0iq1MGYJgcCXvvPj2wJvpp1IpJHbMzr1pVkgvp 26zZbhPDE0V4LptMOYHHPw== 0000715165-99-000054.txt : 19990816 0000715165-99-000054.hdr.sgml : 19990816 ACCESSION NUMBER: 0000715165-99-000054 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990813 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: 99686840 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 SEMI-ANNUAL REPORT THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS SEMI-ANNUAL REPORT JUNE 30 , 1999 THE WRIGHT MANAGED EQUITY TRUST o Wright Selected Blue Chip Equities Fund o Wright Junior Blue Chip Equities Fund o Wright Major Blue Chip Equities Fund o Wright International Blue Chip Equities Fund THE WRIGHT MANAGED INCOME TRUST o Wright U.S. Treasury Money Market Fund o Wright U.S. Government Near Term Fund o Wright U.S. Treasury Fund o Wright Total Return Bond Fund o Wright Current Income Fund THE WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST 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 Letter to Shareholders.................................................2 Management Discussion..................................................3 Dividend Distributions and Investment Return...........................8 FINANCIAL STATEMENTS THE WRIGHT MANAGED EQUITY TRUST Wright Selected Blue Chip Equities Fund......................14 Wright Junior Blue Chip Equities Fund........................16 Wright Major Blue Chip Equities Fund.........................18 Wright International Blue Chip Equities Fund.................20 Financial Highlights.........................................22 Notes to Financial Statements................................27 THE WRIGHT MANAGED INCOME TRUST Wright U.S. Treasury Fund Money Market Fund..................32 Wright U.S. Government Near Term Fund........................34 Wright U.S. Treasury Fund....................................36 Wright Total Return Bond Fund................................38 Wright Current Income Fund...................................40 Financial Highlights.........................................42 Notes to Financial Statements................................48 THE WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST Selected Blue Chip Equities Portfolio........................54 Junior Blue Chip Equities Portfolio..........................56 International Blue Chip Equities Portfolio...................58 U.S. Government Near Term Portfolio..........................60 U.S. Treasury Portfolio......................................62 Current Income Portfolio.....................................64 Supplementary Data...........................................66 Notes to Financial Statements................................69 PORTFOLIOS OF INVESTMENTS Wright Major Blue Chip Equities Fund (WMBC)..................74 Wright Total Return Bond Fund (WTRB).........................76 Selected Blue Chip Equities Portfolio (SBCP).................78 Junior Blue Chip Equities Portfolio (JBCP)...................80 International Blue Chip Equities Portfolio (IBCP)............82 Wright U.S. Treasury Money Market Fund (WTMM)................85 U.S. Government Near Term Portfolio (NTBP)...................86 U.S. Treasury Portfolio (USTBP)..............................87 Current Income Portfolio (CIFP)..............................88 LETTER TO SHAREHOLDERS - ------------------------------------------------------------------------------- July 1999 Dear Shareholders: Investors spent much of the first half of 1999 worrying whether the Federal Reserve would raise interest rates. On the final day of the half, the Fed obliged, raising the federal funds rate 25 basis points to 5.0%. The rate was not exactly a surprise; midway through the second quarter, Fed policy makers had announced a shift to a monetary policy biased toward tightening. But the Fed did surprise investors on June 30, when it returned its monetary policy stance back to neutral, suggesting that maybe we won't need more tightening after all. Needless to say, investors in stock and bond markets worldwide responded positively to this news. Long-term interest rates have climbed by over 100 basis points from last October's lows. With signs of economic recovery appearing in Asia and Latin America, the liquidity premium that investors paid for Treasuries during last fall's crisis has narrowed, as one would expect. The bulk of the rise in bond yields since last summer, however, has resulted from rising expectations of Fed tightening. Ironically, although the Fed has raised rates only 25 basis points, the entire Treasury yield curve is 25-50 basis points above the more normal levels that prevailed before the arrival of last summer's global financial crisis and subsequent Fed easing. For investors willing to look beyond the current uncertainty about the Fed's interest rate policy, the yields available in the U.S. bond market today are quite attractive - particularly if we are right about inflation staying low. The U.S. economy was robust as the first half was coming to an end, but inflation pressures remain modest thanks to strong growth in productivity, ample global capacity and competitive markets. Corporate profits were at a record level in the first quarter of 1999, and this stronger trend is persisting in the second quarter. This is positive for the stock market, as is the improvement in market breadth seen since March. In June, there were signs that investors were starting to nibble at the big technology stocks that sold off in April and May; smaller stocks have for the most part maintained their momentum. The speculative fever in Internet stocks, which are down an average of 25% from their highs, appears to have broken. The countdown to Y2K is now at six months, and Wright has essentially completed the migration to Y2K-compliant portfolio accounting and client interface systems. We are on schedule to a summer completion for the transition of our investment information systems from mainframe to a PC-based network. Wright securities analysts continue to monitor the Y2K compliance of companies on the Approved Wright Investment List. In the end, we believe that diversified portfolios of high-quality securities provide the best protection against short-run Y2K problems for any individual security. The global economic environment has improved in 1999, and while higher interest rates will probably bring some slowing in the U.S. as we draw near to Y2K, we expect growth to continue at a respectable rate. Add to this our forecast of low inflation and an improved bond market, and the result is a generally favorable environment for equities. Still, we doubt that equity investors can finesse away the issue of valuation ad infinitum. In other words, more modest returns to stocks should be expected going forward. 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 following paragraphs discuss the various economic, political and market factors affecting the investment performance of the Wright Equity and Fixed-Income Funds during the first half of 1999 and prospects for the period ahead. Sincerely, /s/Peter M. Donovan Peter M. Donovan President MANAGEMENT DISCUSSION - ------------------------------------------------------------------------------- EQUITY FUNDS Considering the rise in interest rates and some serious profit taking in Internet issues, U.S. stocks performed quite well during the first half of 1999. A spurt early in the second quarter taking the market to new peaks was followed by a period in which little upward progress was made. Investors fretted about rising interest rates, higher inflation, and a possible tightening by the Fed. On the last day of June, when the Fed raised rates 25 basis points (but also shifted monetary policy into neutral), stocks rallied on relief that the action wasn't more extreme. For the first half, stocks in the Americas and in the Pacific generally performed strongly, while Europe's gains were relatively modest. The second quarter saw the start of a correction in some of the stock market imbalances that had developed over the previous year. For most of 1998 and the first quarter of 1999, the market was dominated by a few large technology stocks, especially Internet-related issues. In the second quarter, however, the earnings prospects of cyclical stocks improved on evidence that the U.S. economy remained on solid ground, while many high-P/E growth stocks were done in by rising interest rates. Investors took profits in some of the high-priced stocks in the Internet, health care and consumer staples sectors. The value half of the S&P 500 outperformed the growth half, while basic materials and capital goods stocks outperformed technology in the quarter. The small- and mid-cap sectors outdistanced large-cap stocks by 7%-8% for the quarter, their best relative performance in 18 months. The breadth of the market advance improved over the course of the quarter. The second quarter's market flip-flop is a hopeful sign that fundamentals still matter. As the third quarter got underway, at first it seemed that the market was trying to reestablish tech stocks as the market leaders, but this was followed by another bout of profit taking in the sector. Market leadership is shifting from day to day. WIS is hopeful that the better sense of value that returned to the market in the second quarter will win out; this, along with improvement in market breadth, would be a good sign for the long-term survival of the bull market. Economic fundamentals are positive for stocks. There is no evidence that the U.S. expansion will falter (barring excessive tightening by the Fed, which we believe is unlikely), and profit prospects are improving. Nevertheless, the fact that the market is at a near record P/E even though bond yields are up some 100 basis points from last fall's lows points up the market's risk. If a correction does develop, most affected will be the overvalued favorites that have dominated the market for the last 18 months. Many lower-profile, high-quality stocks are priced at levels that still offer attractive investment returns.
1999 1999 1998 1997 1996 1995 1994 1993 1992 1991 Total Return Q2 6 Mos. Year Year Year Year Year Year Year Year - ------------------------------------------------------------------------------------------------------------------------------- Selected Blue Chips (WSBC) 13.9% 6.0% 0.1% 32.7% 18.6% 30.3% -3.5% 2.1% 4.7% 36.0% Major Blue Chips (WMBC) 10.3% 13.8% 20.4% 33.9% 17.6% 29.0% -0.7% 1.0% 8.0% 38.9% Junior Blue Chips (WJBC) 15.7% 1.7% -4.9% 28.9% 17.5% 20.5% -2.8% 7.9% 3.3% 37.0% Int'l Blue Chips (WIBC) Standard Shares 4.6% 0.6% 6.1% 1.5% 20.7% 13.6% -1.6% 28.2% -3.9% 17.2% Institutional Shares 4.7% 0.7% 7.5% -6.4%(*) - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- (*): For the period from July 7, 1997 (inception of offering of institutional shares) to December 31, 1997.
WRIGHT SELECTED BLUE CHIP EQUITIES FUND After a tough first quarter for all but a handful of big stocks, the market backed away a bit from big-cap stocks and showed renewed appreciation of the value in the rest of the market. This worked to the benefit of the Wright Selected Blue Chip Fund (WSBC) during the second quarter. For the April-June period, the WSBC's mid-cap orientation helped the fund return 13.9%. That was almost double the 7.0% returned by both the S&P 500 and the Lipper equity fund average, but slightly behind the 14.1% return of the S&P MidCap 400. For the first half of 1999, the Selected Blue Chips returned 6.0%, compared to 12.4% for the S&P 500, 6.9% for the S&P MidCaps and 11.7% for the Lipper average. Compared to the S&P 500, the WSBC Fund's second-quarter performance benefited from its lower weighting in big-cap, high-P/E stocks and health care issues, as well as an overweighting in capital goods stocks, which performed well. Relative to the S&P MidCap 400, the WSBC Fund's performance was reduced by its underweighting in basic materials stocks and mid-cap tech issues; again it was aided by an overweighting in the capital goods sector. Above-average appreciation by a number of high quality, reasonably priced stocks (e.g., Ingersoll-Rand, Leggett & Platt, USFreightways) also boosted the return of the WSBC Fund for the quarter. If the market continues to turn away from favoring size for its own sake, the Wright Selected Blue Chip Fund has the potential to gain more ground on the S&P 500. Despite their excellent appreciation in the second quarter, the issues in the WSBC Fund had an average P/E of 19 at June 30, compared to 28 for the S&P MidCaps and 34 for the S&P 500. WRIGHT JUNIOR BLUE CHIP EQUITIES FUND The Wright Junior Blue Chip Fund (WJBC) benefited from the resurgence of small stocks in the second quarter, returning 15.7%, slightly ahead of the Russell 2000 (15.5%) and the S&P SmallCap 600 (15.4%). Because of the WJBC Fund's disappointing performance in the first quarter, when a few big-cap stocks dominated the market, the fund's return for the first half of 1999 was 1.7%, compared to 9.2% for the Russell 2000 and 5.0% for the S&P SmallCaps. During the second quarter, the WJBC Fund benefited from strong price gains in some of its more cyclical holdings: Imco Recycling (basic materials); AMCOL International and JLG Industries (capital goods); Buckle, Inc. and Thor Industries (consumer cyclicals). An underweighting in health-care stocks also was a positive factor, while underweight positions in technology and energy issues detracted from the fund's second-quarter return. As long as the stock market does not return to the dangerously narrow focus on big-cap issues that was evident prior to the second quarter, the WJBC Fund is well positioned to offer superior investment returns. The stocks in the fund have a P/E multiple of 15 times earnings, which compares quite favorably with the 27 times of the S&P SmallCap 600. WRIGHT MAJOR BLUE CHIP EQUITIES FUND The Wright Major Blue Chip Fund (WMBC) had a 10.3% return in the second quarter. The WMBC Fund outperformed the S&P 500 and the Lipper equity growth fund average, which both returned about 7% in the quarter. For the first half of 1999, the WMBC Fund returned 13.8%, compared to 12.4% for the S&P 500 and 11.7% for the Lipper average. Although it is oriented toward bigger-cap issues, the WMBC Fund has a lesser concentration in the high-priced mega-stocks (e.g., Microsoft and GE) than the S&P 500, and that helped its performance in the second quarter. The fund also benefited from overweight positions in such strong sectors as basic materials and capital goods and an underweighting in health care. Among individual holdings contributing to the fund's excess return in the second quarter were Alcoa, Dana, and Eaton. Among technology holdings, IBM and Computer Associates helped, while Gateway and EMC Corp. detracted from fund performance. Even after its superior second-quarter showing, the WMBC Fund, with a P/E of 27, offers better value than the S&P 500 (34). WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND For the second quarter of 1999, foreign markets overall lagged U.S. stocks. In dollar terms, European markets were virtually unchanged in the quarter; Asian markets, on the other hand, returned more than 10%. For the April-June period, the FT/S&P Actuaries World ex U.S. index returned 4.0% in dollars. The Wright International Blue Chip Fund (WIBC) topped this with a 4.6% return. For the first half of 1999, the WIBC Fund returned 0.6%, compared to 6.3% for the FT World ex U.S. index. During the second quarter, the WIBC Fund benefited from a relatively large exposure to the Mexican market, which returned almost 19% in dollars for the period. Positions in some cyclical German issues (Heidelberger Zement, BASF) and good results from holdings of French, Swiss, and Italian stocks boosted the fund's return. Underweighting in Japan and Hong Kong, strong markets in the second quarter, and in oil-related stocks detracted from the WIBC Fund's relative showing. The prospect of improving economic conditions in Europe and Asia bodes well for the international stock markets in coming quarters, as does the relatively attractive valuation of many stocks in Europe and the Pacific region relative to U.S. equities. One caveat: a correction in the U.S. could affect other markets. FIXED-INCOME FUNDS The first quarter's bear market decline in bonds continued into the second quarter. Yields on 30-year Treasury bonds closed the second quarter just under 6%, up from 5.6% at the end of March and 5.1% at the start of the year. Lehman Brothers' long-term Treasury bond index incurred a loss of 2.5% in the second quarter; so far this year, long-term Treasuries are 6.6% in the red. With the global economy apparently improving, corporate bonds did better than long-term Treasuries; mortgage-backed securities also turned in smaller losses than Treasuries. On June 30, the FOMC announced a 25 basis-point increase in the fed funds rate and a move to a neutral bias on monetary policy. The Fed's action sparked a rally in bonds at quarter's end. In the weeks before, however, nervous investors took the 30-year-Treasury yield as high as 6.17%; yields on Treasury issues with maturities of seven years and longer got above 6%. Before long, investors should recognize the good opportunity provided by 6% bond yields. Unless the Fed tightens by considerably more than the 75 basis points that it cut rates last fall, which is unlikely, Wright believes that bond yields are likely to be a lot lower a year from now than they are today. Even if yields just get back this year's rise over the next 12 months, returns on ten-year bonds will approach double digits. That should compare favorably to equity returns over the same period.
1999 1999 1998 1997 1996 1995 1994 1993 1992 1991 Total Return Q2 6 Mos. Year Year Year Year Year Year Year Year - ------------------------------------------------------------------------------------------------------------------------------ U.S. Treasury Money Mkt (WTMM) 1.0% 2.0% 4.7% 4.8% 4.9% 5.3% 3.6% 2.5% 3.3% n.a. U.S. Gov. Near-Term Bonds (WNTB) 0.3% 0.6% 6.0% 5.9% 3.9% 11.9% -3.1% 8.0% 6.3% 13.1% U.S. Treasury Bonds (WUSTB) -1.3% -3.4% 10.0% 9.1% -1.2% 28.2% -8.7% 15.9% 7.1% 17.6% Total Return Bonds (WTRB) -1.9% -3.7% 9.6% 9.3% 0.9% 22.0% -6.6% 11.0% 7.1% 15.4% Current Income (WCIF) Standard Shares -1.2% -0.7% 6.5% 8.6% 4.3% 17.5% -3.3% 6.6% 6.7% 15.3% Institutional Shares -1.1% -0.6% 6.6% 4.4%(*) - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- (*): For the period from July 7, 1997 (inception of offering of institutional shares) to December 31, 1997.
WRIGHT U.S. TREASURY MONEY MARKET FUND The Wright U.S. Treasury Money Market Fund (WTMM) returned 1.0% in the second quarter of 1999, compared to 1.1% for both the average Treasury money market fund and 90-day Treasury bills. For 1999's first half, the WTMM Fund returned 2.0%, slightly below the 2.1% return for the average Treasury money market fund. Throughout the first half of 1999, the money markets were betting on the Federal Reserve increasing interest rates. By June 30 (at which time the Fed did raise the federal funds rate 25 basis points), 90-day Treasury bills had climbed 30 basis points to 4.78% coupon equivalent. Further Fed rate hikes are generally expected during the second half, although Wright doubts that the fed fund rate will get higher than 5.5% (from 5.0% currently). The U.S. economy began the third quarter on a strong footing, but some slowing - and more evidence of low inflation - are forecast for later this year and next, limiting the rise in short-term interest rates. WRIGHT U.S. GOVERNMENT NEAR TERM FUND The Wright U.S. Government Near-Term Fund (WNTB) eked out a 0.3% return in the second quarter of 1999, matching its first-quarter return. The second-quarter result was in line with the Morningstar average of near-term government funds but was below the 1.1% return earned on three-month Treasury bills. That was principally due to short- to intermediate-term interest rates increasing 30 to 50 basis points during the second quarter. Interest rates climbed as a result of strong economic growth in the United States, firming in economic activity outside the U.S. and fears that higher oil prices would lead to a broader rise in inflation. While the Federal Reserve raised benchmark short-term interest rates by one-quarter percentage point on June 30, Wright does not believe that we are on the threshold of a major uptrend in interest rates. If we are correct, there is little downside risk in near-term government securities over the balance of this year and into next year. At midyear 1999, the WNTB Fund's average maturity and duration were both at 1.7 years, down from 1.8 years at March 31, close to the Lehman Treasury 1-3 year benchmark. During the second half of 1999, the WNTB Fund expects to increase its holdings of government agency issues to take advantage of the attractive spreads that exist relative to Treasury securities. WRIGHT U.S. TREASURY FUND The Wright U.S. Treasury Fund (WUSTB), which invests exclusively in U.S. Treasury securities, lost 1.3% in the second quarter of 1999; that was slightly behind the 0.9% decline for the Lehman Treasury bond composite. At June 30, the WUSTB had an average maturity of 8.7 years and a duration of 5.9 years (compared to 9.1 and 5.5, respectively, for the Lehman benchmark). In this range of the yield curve, yields rose about 55 basis points during the second quarter and more than one percentage point since December 31. Compared to the U.S. bond market in the aggregate, the WUSTB Fund was hurt in the quarter by not holding spread products - i.e., agency and corporate issues - which posted narrower losses than Treasury bonds. For the first six months of 1999, WUSTB declined 3.4%, as compared to a 2.5% loss for the Lehman Treasury composite. The WUSTB Fund closed the second quarter with a yield to maturity of 5.9%. Wright expects the next material move in bond yields to be lower, resulting in better returns for intermediate- and long-term Treasury bonds over the rest of 1999 and in 2000. WRIGHT TOTAL RETURN BOND FUND The Wright Total Return Bond Fund (WTRB) holds U.S. Treasury issues (28% of assets at June 30), corporate bonds (39%), agencies (19%), and mortgage-backed securities (13%). Although these latter sectors held up slightly better than Treasuries in the second quarter, the WTRB Fund experienced a loss of 1.9% for the period as a result of the fund's slightly longer-than-benchmark duration (5.9 vs 5.7) and the fund's avoidance of lower-quality corporates, which have rebounded this year. The Lehman government/corporate bond average lost 1.1% during the quarter. For the first half of 1999, fear of Federal Reserve tightening - which was realized at quarter end - detracted from the bond market's performance. The WTRB Fund had a loss of 3.7% in the six months, as compared to a 2.3% decline in the Lehman government/corporate composite. With the worst of the bond market's problems now believed to be behind us, better returns are anticipated from the U.S. bond market over the 12 months ahead. WRIGHT CURRENT INCOME FUND The Wright Current Income Fund (WCIF) lost 1.2% during the second quarter of 1999. This compares with a loss of 1.0% estimated for the Morningstar government mortgage fund average and a decline of 1.1% for the Lehman Government/Corporate Bond Average. Mortgage-backed securities generally outperformed Treasury securities in the second quarter, although by a smaller margin than in the first. For the first six months of 1999, the WCIF Fund had a 0.7% decline, as compared with a 0.5% loss for the Morningstar government mortgage fund average. During the second quarter, as interest rates rose, the estimated duration for the WCIF Fund extended out to 5.4 years from 4.8 years at March 31 and 3.9 years at the end of last year. In anticipation of mortgage rates going lower over the coming 12-18 months, Wright expects to be a buyer of current coupon and discount coupon securities during 1999's second half. The fund's indicated annual dividend yield of 6.0% was roughly three times the rate of inflation. The 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% 06/30/99 10970.80 5.97% - -------------------------------------------------------------------------------- DIVIDEND DISTRIBUTIONS AND INVESTMENT RETURN - -------------------------------------------------------------------------------
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.98 17.63 1.461 0.086861 404.37 7,129.11 0.14% 14.65% 13.24% 13.07% Jan.99 17.24 404.37 6,971.41 -1.51% 13.99% 12.49% 12.84% Feb.99 16.54 404.37 6,688.35 -11.97% 13.15% 12.10% 12.49% Mar.99 16.39 0.020 0.001208 404.86 6,635.70 -15.88% 13.83% 11.82% 12.36% Apr.99 18.04 404.86 7,303.72 -7.50% 16.03% 12.40% 12.96% May 99 17.96 404.86 7,271.33 -3.98% 15.96% 11.85% 12.86% Jun.99 18.64 0.020 0.001089 405.30 7,554.86 1.65% 17.25% 12.32% 13.05% - ----------------------------------------------------------------------------------------------------------------------------- THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) 1/15/85 $10.00 100.00 $1,000.00 Dec.98 9.92 0.045 0.004712 395.91 3,927.47 -4.90% 11.05% 10.30% 10.30% Jan.99 9.53 395.91 3,773.06 -8.46% 9.82% 9.67% 9.98% Feb.99 8.77 395.91 3,472.17 -20.55% 7.79% 8.75% 9.27% Mar.99 8.72 395.91 3,452.37 -22.61% 8.50% 8.61% 9.17% Apr.99 9.52 395.91 3,769.10 -14.60% 10.41% 9.13% 9.79% May 99 9.68 395.91 3,832.45 -10.28% 11.36% 8.90% 9.86% Jun.99 10.09 395.91 3,994.77 -3.91% 12.57% 9.42% 10.12% - --------------------------------------------------------------------------------------------------------------------------------- THE EQUITY TRUST -- WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC) 7/22/85 $10.00 100.00 $1,000.00 Dec.98 13.67 0.730 0.056068 502.64 6,871.06 20.43% 19.41% 15.96% 15.42% Jan.99 14.17 502.64 7,122.38 24.11% 20.31% 15.82% 15.72% Feb.99 13.90 502.64 6,986.67 12.79% 19.95% 15.73% 15.45% Mar.99 14.09 0.015 0.001056 503.17 7,089.65 10.02% 21.26% 15.76% 15.48% Apr.99 15.34 503.17 7,718.62 19.00% 23.36% 16.17% 16.10% May 99 14.84 503.17 7,467.03 16.92% 22.20% 15.25% 15.72% Jun.99 15.53 0.010 0.000653 503.50 7,819.32 20.37% 23.76% 15.92% 16.00% - -------------------------------------------------------------------------------------------------------------------------------- THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) STANDARD SHARES 9/14/89 $10.00 100.00 $1,000.00 Dec.98 16.02 0.882 0.057609 127.40 2,041.02 6.14% 7.77% -- 7.98% Jan.99 15.49 127.40 1,973.50 2.75% 6.06% -- 7.59% Feb.99 15.13 127.40 1,927.63 -6.14% 6.05% -- 7.25% Mar.99 15.12 0.287 0.018832 129.80 1,962.64 -8.68% 7.29% -- 7.39% Apr.99 15.83 129.80 2,054.80 -4.81% 7.65% -- 7.84% May 99 15.11 129.80 1,961.34 -8.99% 7.11% -- 7.25% Jun.99 15.81 129.80 2,052.20 -2.15% 8.28% -- 7.68% INSTITUTIONAL SHARES 7/07/97 $10.00 100.00 $1,000.00 Dec.98 8.75 0.962 0.115072 115.06 1,006.80 7.54% -- -- 0.46% Jan.99 8.46 115.06 973.44 4.09% -- -- -1.79% Feb.99 8.26 115.06 950.42 -5.04% -- -- -3.18% Mar.99 8.13 0.287 0.035000 119.09 968.21 -7.56% -- -- -1.94% Apr.99 8.52 119.09 1,014.65 -3.60% -- -- 0.84% May 99 8.13 119.09 968.21 -7.83% -- -- -1.76% Jun.99 8.51 119.09 1,013.46 -1.88% -- -- 0.71% - -------------------------------------------------------------------------------------------------------------------------------- *: 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 $0.003536 1,003.54 4.16% -- 4.16% Feb. 28 0.003110 1,006.66 4.05% - 4.12% Mar. 31 0.003432 1,010.11 4.04% 4.10% 4.10% Apr. 30 0.003310 1,013.45 4.03% 4.05% 4.09% May 31 0.003421 1,016.92 4.03% 4.05% 4.09% Jun. 30 0.003361 1,020.34 4.09% 4.06% 4.10% ---------- Total $0.020170 (a): Assumes reinvestment of monthly dividends. - -------------------------------------------------------------------------------------------------------------------------------
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 12/98 10.27 0.046913 0.004568 314.988 3,234.93 5.98% 4.82% 7.04% 7.90% 1/99 10.27 0.044199 0.004304 316.344 3,248.85 5.42% 4.70% 7.00% 7.93% 2/99 10.15 0.041567 0.004095 317.639 3,224.04 4.67% 4.91% 6.95% 7.83% 3/99 10.17 0.044835 0.004409 319.040 3,244.63 4.93% 5.44% 6.99% 7.84% 4/99 10.15 0.043544 0.004290 320.408 3,252.14 4.79% 5.68% 6.83% 7.81% 5/99 10.09 0.043802 0.004341 321.799 3,246.95 4.13% 5.66% 6.63% 7.76% 6/99 10.07 0.043491 0.004317 323.188 3,254.51 3.89% 5.70% 6.42% 7.73% --------- Total $0.261438 - ------------------------------------------------------------------------------------------------------------------------------ THE INCOME TRUST -- WRIGHT U.S. TREASURY FUND (WUSTB) 7/25/83 $10.00 100.000 $1,000.00 12/98 14.40 0.227935 0.015710 318.612 4,588.01 9.95% 6.76% 9.60% 10.37% 1/99 14.41 0.059932 0.004159 319.937 4,610.29 8.62% 6.39% 9.47% 10.41% 2/99 13.93 0.055306 0.003970 321.207 4,474.42 5.98% 6.68% 9.33% 10.13% 3/99 13.87 0.061807 0.007989 323.773 4,490.73 6.19% 7.69% 9.27% 10.11% 4/99 13.85 0.058239 0.004205 325.134 4,503.11 6.08% 8.13% 9.04% 10.07% 5/99 13.62 0.060747 0.004460 326.585 4,448.08 3.79% 7.99% 8.55% 9.93% 6/99 13.51 0.058295 0.004314 327.993 4,431.19 2.21% 8.12% 8.03% 9.85% --------- Total $0.354326 - ------------------------------------------------------------------------------------------------------------------------------ THE INCOME TRUST -- WRIGHT TOTAL RETURN BOND FUND (WTRB) 7/25/83 $10.00 100.000 $1,000.00 12/98 13.31 0.157365 0.011750 315.193 4,195.22 9.56% 6.81% 8.60% 9.80% 1/99 13.33 0.055357 0.004153 316.502 4,218.97 8.34% 6.41% 8.42% 9.77% 2/99 12.90 0.054122 0.004195 317.830 4,100.00 5.73% 6.44% 8.20% 9.52% 3/99 12.90 0.056371 0.004370 319.219 4,117.92 5.92% 7.24% 8.25% 9.50% 4/99 12.86 0.055900 0.004347 320.606 4,123.00 5.67% 7.55% 8.07% 9.45% 5/99 12.62 0.056805 0.004501 322.049 4,064.26 3.14% 7.29% 7.63% 9.30% 6/99 12.49 0.056525 0.004526 323.507 4,040.60 1.53% 7.26% 7.19% 9.21% --------- Total $0.335080 - ---------------------------------------------------------------------------------------------------------------------------------- THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF) Standard Shares 4/14/87 $10.00 100.000 $1,000.00 12/98 10.66 $0.052419 0.004917 239.279 2,550.72 6.51% 6.51% 8.47% 8.32% 1/99 10.67 0.050818 0.004763 240.419 2,565.27 6.07% 6.44% 8.37% 8.37% 2/99 10.55 0.051224 0.004869 241.590 2,548.77 5.24% 6.51% 8.40% 8.25% 3/99 10.56 0.050289 0.004875 242.767 2,563.62 5.52% 7.32% 8.47% 8.25% 4/99 10.55 0.051483 0.004880 243.952 2,573.69 5.30% 7.58% 8.29% 8.22% 5/99 10.41 0.051117 0.004903 245.148 2,551.99 3.59% 7.38% 7.87% 8.09% 6/99 10.28 0.051295 0.004990 246.371 2,532.70 2.49% 7.34% 7.49% 7.96% --------- Total $0.306226 - ------------------------------------------------------------------------------------------------------------------------------- Institutional Shares 7/07/97 $10.00 100.000 $1,000.00 12/98 10.15 $0.046702 0.004601 109.602 1,112.46 6.56% -- -- 7.43% 1/99 10.15 0.049065 0.004834 110.131 1,117.83 6.09% -- -- 7.77% 2/99 10.04 0.050181 0.004984 110.680 1,111.23 5.32% -- -- 6.93% 3/99 10.05 0.049801 0.005004 111.234 1,117.90 5.61% -- -- 6.98% 4/99 10.04 0.050410 0.005021 111.793 1,122.40 5.38% -- -- 6.88% 5/99 9.91 0.049903 0.005036 112.356 1,113.44 3.70% -- -- 6.09% 6/99 9.79 0.050043 0.005112 112.930 1,105.58 2.74% -- -- 5.42% --------- Total $0.299403
WRIGHT MANAGED EQUITY TRUST - ------------------------------------------------------------------------------- Wright Selected Blue Chip Equities Fund (WBC) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments in portfolio, at value (identified cost,$101,572,989)(Note 1A) $140,080,875 ------------ Total investments, at value............. $140,080,875 Receivable from adviser................. 13,900 ------------ Total assets.......................... $140,094,775 ------------ LIABILITIES: Payable for fund shares reacquired...... $ 262,153 Accrued expenses and other liabilities.. 17,186 ------------ Total liabilities..................... $ 279,339 ------------ NET ASSETS................................ $139,815,436 ============= 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................... $ 79,071,037 Accumulated undistributed net realized gain on investments (computed on the basis of identified cost)....................... 21,313,519 Unrealized appreciation of investments (computed on the basis of identified cost) 38,507,886 Undistributed net investment income..... 922,994 ------------ Net assets applicable to outstanding shares $139,815,436 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 7,500,647 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $18.64 ============= See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1C): Income - Dividend income allocated from portfolio $ 1,264,124 Interest income allocated from portfolio 35,446 Expenses allocated from portfolio...... (710,079) ------------ Investment income..................... $ 589,491 ------------ Expenses - Administrator fee (Note 2)............. $ 13,259 Compensation of Trustees not affiliated with the investment adviser or administrator... 1,607 Custodian fee (Note 1D)................ 17,922 Distribution expenses (Note 3)......... 207,501 Transfer and dividend disbursing agent fees 29,206 Legal services......................... 16,143 Registration costs .................... 11,802 Miscellaneous.......................... 8,808 ------------ Total expenses........................ $ 306,248 ------------ Deduct - Preliminary reduction of distribution expenses by principal underwriter (Note 3) .... $ 45,731 Preliminary allocation of expenses to adviser (Note 2).............................. 13,900 ------------ Total deductions...................... $ 59,631 ------------ Net expenses........................ $ 246,617 ------------ Net investment income............. $ 342,874 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions from portfolio (identified cost basis)...... $ 21,681,441 Change in unrealized appreciation (depreciation) of investments ........................ (17,105,508) ------------ Net realized and unrealized gain on investments............................ $ 4,575,933 ------------ Net increase in net assets from operations $ 4,918,807 ============= See notes to financial statements WRIGHT MANAGED EQUITY TRUST - ------------------------------------------------------------------------------- Wright Selected Blue Chip Equities Fund (WBC)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - --------------------------------------------------------------------------------------------------------------------------------- (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 342,874 $ 1,167,164 Net realized gain on investments........................................... 21,681,441 15,538,125 Change in unrealized depreciation of investments........................... (17,105,508) (20,336,710) ------------ ------------ Net increase (decrease) in net assets resulting from operations $ 4,918,807 $ (3,631,421) ------------ ------------ Undistributed net investment income included in price of shares sold and redeemed (Note 1F).................................................................. $ - $ (14) ------------ ------------ Distributions to shareholders (Note 1G) - From net investment income ................................................ $ (344,260) $ (1,166,044) From net realized gain..................................................... (637) (16,414,262) In excess of net realized gain............................................. - (845,717) ------------ ------------ Total distributions...................................................... $ (344,897) $(18,426,023) ------------ ------------ Net decrease in net assets from fund share transactions (Note 4) -........... $(85,723,041) $(16,388,843) ------------ ------------ Net decrease in net assets................................................... $(81,149,131) $(38,446,301) NET ASSETS: At beginning of period....................................................... 220,964,567 259,410,868 ------------ ------------ At end of period............................................................. $139,815,436 $220,964,567 ============== ============== UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ 922,994 $ 924,380 ============== ============== See notes to financial statements
WRIGHT MANAGED EQUITY TRUST - ------------------------------------------------------------------------------- Wright Junior Blue Chip Equities Fund (WJBC) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------ ASSETS: Investments in portfolio, at value (identified cost, $17,464,036 for WJBC) (Note 1A)............................. $18,019,147 ------------ Total investments, at value............. $18,019,147 Receivable from adviser................. 27,980 ------------ Total assets.......................... $18,047,127 ------------ LIABILITIES: Payable for fund shares reacquired...... $ 4,539 Accrued expenses and other liabilities.. 9,771 ------------ Total liabilities..................... $ 14,310 ------------ NET ASSETS................................ $18,032,817 ============= 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................... $18,135,548 Accumulated net realized loss on investments (computed on the basis of identified cost) (291,390) Unrealized appreciation of investments (computed on the basis of identified cost) 555,111 Distributions in excess of net investment income...................... (366,452) ------------ Net assets applicable to outstanding shares $18,032,817 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 1,786,563 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $10.09 ============= See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1C): Income - Dividend income allocated from portfolio $ 134,314 Interest income allocated from portfolio 6,724 Expenses allocated from portfolio...... (117,443) ------------ Investment income..................... $ 23,595 ------------ Expenses - Administrator fee (Note 2)............. $ 2,347 Compensation of Trustees not affiliated with the investment adviser or administrator... 1,222 Custodian fee (Note 1D) ............... 11,715 Distribution expenses (Note 3)......... 21,727 Transfer and dividend disbursing agent fees 15,798 Printing............................... 1,287 Audit services......................... 6,075 Legal services......................... 2,243 Registration costs..................... 7,470 ------------ Total expenses........................ $ 69,884 ------------ Deduct - Preliminary reduction of distribution expenses by principal underwriter (Note 3) .... $ 21,727 Preliminary allocation of expenses to adviser (Note 2).............................. 27,980 ------------ Total deductions...................... $ 49,707 ------------ Net expenses........................ $ 20,177 ------------ Net investment income............. $ 3,418 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on investment transactions from portfolio (identified cost basis)...... $ (291,390) Change in unrealized appreciation (depreciation) of investments from portfolio ......... (875,499) ------------ Net realized and unrealized loss on investments............................ $(1,166,889) ------------ Net decrease in net assets from operations........................... $(1,163,471) ============= See notes to financial statements Wright Managed Equity Trust - ------------------------------------------------------------------------------- Wright Junior Blue Chip Equities Fund (WJBC)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31,1998 - ------------------------------------------------------------------------------------------------------------------------------- (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 3,418 $ 17,764 Net realized gain (loss) on investments.................................... (291,390) 154,875 Change in unrealized appreciation (depreciation) of investments............ (875,499) (2,056,707) ------------ ------------ Net decrease in net assets resulting from operations..................... $ (1,163,471) $ (1,884,068) ------------ ------------ Distributions to shareholders (Note 1G) - From net realized gain..................................................... $ - $ (157,251) ------------ ------------ Net increase (decrease) in net assets from fund share transactions (Note 4) - $(15,320,371) $ 3,068,243 ------------ ------------ Net increase (decrease) in net assets........................................ $(16,483,842) $ 1,026,924 NET ASSETS: At beginning of period....................................................... 34,516,659 33,489,734 ------------ ------------ At end of period............................................................. $ 18,032,817 $ 34,516,658 ============== ============== DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ (366,452) $ (369,870) ============== ============== See notes to financial statements
WRIGHT MANAGED EQUITY TRUST - ------------------------------------------------------------------------------- Wright Major Blue Chip Equities Fund (WMBC)(+) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments - Identified cost....................... $ 88,787,751 Unrealized appreciation............... 21,062,870 ------------ Total investments, at value (Note 1A)... $109,850,621 Cash.................................... 2,317 Receivable for fund shares sold......... 2,000 Dividend and interest receivable........ 86,066 ------------ Total assets.......................... $109,941,004 ------------ LIABILITIES: Accrued expenses and other liabilities.. $ 20,448 Distribution fee payable................ 1,724 ------------ Total liabilities..................... $ 22,172 ------------ NET ASSETS................................ $109,918,832 ============= 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................... $ 86,129,199 Accumulated undistributed net realized gain on investments (computed on the basis of identified cost).................... 2,941,159 Unrealized appreciation of investments (computed on the basis of identified cost) 21,062,870 Distributions in excess of net investment income...................... (214,396) ------------ Net assets applicable to outstanding shares $109,918,832 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 7,077,073 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $15.53 ============= + The Wright Major Blue Chip Equities Fund does not invest in a corresponding master portfolio. See notes to the financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1C): Income - Dividend income........................ $ 541,313 Interest income........................ 84,391 ------------ Investment income..................... $ 625,704 ------------ Expenses - Investment adviser fee (Note 2)........ $ 198,961 Administrator fee (Note 2)............. 93,631 Compensation of Trustees not affiliated with the investment adviser or administrator... 1,697 Custodian fee (Note 1D)................ 34,949 Distribution expenses (Note 3)......... 109,306 Transfer and dividend disbursing agent fees 20,794 Printing............................... 1,233 Audit services......................... 25,203 Legal services......................... 6,443 Registration costs..................... 10,835 Miscellaneous.......................... 3,072 ------------ Total expenses........................ $ 506,124 ------------ Deduct - Preliminary reduction of distribution expenses by principal underwriter (Note 3) .... $ 44,735 Reduction of custodian fee (Note 1D)... 3,222 ------------ Total deductions...................... $ 47,957 ------------ Net expenses........................ $ 458,167 ------------ Net investment income............. $ 167,537 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 2,958,430 Change in unrealized appreciation of investments............................ 9,126,705 ------------ Net realized and unrealized gain on investments......................... $12,085,135 ------------ Net increase in net assets from operations $12,252,672 ============= See notes to financial statements WRIGHT MANAGED EQUITY TRUST - ------------------------------------------------------------------------------- Wright Major Blue Chip Equities Fund(+)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31,1998 - ------------------------------------------------------------------------------------------------------------------------------ (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 167,537 $ 159,430 Net realized gain on investments........................................... 2,958,430 2,790,260 Change in unrealized appreciation of investments........................... 9,126,705 5,697,987 ------------ ------------ Net increase in net assets resulting from operations..................... $ 12,252,672 $ 8,647,677 ------------ ------------ Distributions to shareholders (Note 1G) - From net investment income................................................. $ (169,448) $ (147,022) From net realized gain..................................................... - (2,286,379) ------------ ------------ Total distributions...................................................... $ (169,448) $ (2,433,401) ------------ ------------ Net increase in net assets from fund share transactions (Note 4)............. $ 46,957,142 $ 16,943,444 ------------ ------------ Net increase in net assets................................................... $ 59,040,366 $ 23,157,720 NET ASSETS: At beginning of period....................................................... 50,878,466 27,720,746 ------------ ------------ At end of period............................................................. $109,918,832 $ 50,878,466 ============== ============== DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD............................................................. $ (214,396) $ (212,485) ============== ============== + 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 International Blue Chip Equities Fund (WIBC) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- ASSETS: Investment in portfolio, at value (identified cost, $135,972,417) (Note 1A) $152,794,629 Receivable for fund shares sold......... 6,277 ------------ Total assets.......................... $152,800,906 ------------ LIABILITIES: Payable for fund shares reacquired...... $ 29,092 Accrued expenses and other liabilities.. 18,887 ------------ Total liabilities..................... $ 47,979 ------------ NET ASSETS................................ $152,752,927 ============= 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................... $113,757,272 Accumulated undistributed net realized gain on investments and foreign currency (computed on the basis of identified cost)....... 22,447,550 Unrealized appreciation of investments and translation of assets and liabilities in foreign currency(computed on the basis of identified cost......................... 16,775,158 Distributions in excess of net investment income....................... (227,053) ------------ Net assets applicable to outstandin shares................................. $152,752,927 ============= Computation of net asset value, offering and redemption price per share: Standard shares: Net assets............................ $134,605,363 ============= Shares of beneficial interest outstanding 8,516,377 ============= Net asset value, offering price, and redemption price per share of beneficial interest............................. $15.81 ============= Institutional shares: Net assets............................ $ 18,147,564 ============= Shares of beneficial interest outstanding 2,132,371 ============= Net asset value, offering price, and redemption price per share of beneficial interest.............. $8.51 ============= See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1C): Income - Dividend income allocated from portfolio $ 1,993,619 Interest income allocated from portfolio 58,905 Less: Foreign taxes allocated from portfolio............................. (227,754) Expenses allocated from portfolio...... (1,017,789) ------------ Investment income..................... $ 806,981 ------------ Expenses - Administrator fee (Note 2)............. $ 13,907 Compensation of Trustees not affiliated with the investment adviser or administrator 1,607 Custodian fee - Standard shares (Note 1D) 33,798 Custodian fee - Institutional shares (Note 1D) 8,055 Distribution expenses-Standard shares (Note 3) 201,575 Transfer and dividend disbursing agent fees -Standard shares...................... 30,663 Transfer and dividend disbursing agent fees -Institutional shares................. 2,355 Printing............................... 410 Audit services......................... 11,000 Legal services......................... 5,930 Registration costs - Standard shares... 9,461 Registration costs - Institutional shares 4,185 Miscellaneous.......................... 8,268 ------------ Total expenses........................ $ 331,214 ------------ Net investment income............. $ 475,767 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment and foreign currency transactions from portfolio (identified cost basis)................ $23,789,884 Change in unrealized appreciation (depreciation)of investments and translation of assets and liabilities in foreign currencies from portfolio..... (24,957,028) ------------ Net realized and unrealized loss on investments............................ $(1,167,144) ------------ Net decrease in net assets from operations .......................... $ (691,377) ============= See notes to financial statements WRIGHT MANAGED EQUITY TRUST - ------------------------------------------------------------------------------- Wright International Blue Chip Equities Fund (WIBC)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - ------------------------------------------------------------------------------------------------------------------------------- (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 475,767 $ 1,211,297 Net realized gain on investments........................................... 23,789,884 20,726,523 Change in unrealized appreciation (depreciation) of investments............ (24,957,028) (11,296,007) ------------ ------------ Net increase (decrease) in net assets resulting from operations.......... $ (691,377) $ 10,641,813 ------------ ------------ Distributions to shareholders (Note 1G) - From net investment income - Standard shares.......................................................... $ - $ (827,510) Institutional shares..................................................... - (284,480) From net realized gain - Standard shares.......................................................... (3,172,920) (10,461,145) Institutional shares..................................................... (602,849) (1,854,640) ------------ ------------ Total distributions...................................................... $ (3,775,769) $(13,427,775) ------------ ------------ Net increase (decrease) in net assets from fund share transactions (Note 4) - Standard shares.......................................................... $(54,755,111) $(18,251,870) Institutional shares..................................................... 137,849 (24,916,881) ------------ ------------ Net decrease in net assets from fund share transactions...................... $(54,617,262) $(43,168,751) ------------ ------------ Net decrease in net assets................................................... $(59,084,408) $(45,954,713) NET ASSETS: At beginning of period....................................................... 211,837,335 257,792,048 ------------ ------------ At end of period............................................................. $152,752,927 $211,837,335 ============== ============== DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ (227,053) $ (702,820) ============== ============== See notes to financial statements
Wright Managed Equity Trust - ------------------------------------------------------------------------------- Financial Highlights
Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- Wright Selected Blue Chip Equities Fund 1999(4) 1998 1997 1996 1995 1994 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period........ $ 17.630 $ 19.200 $ 17.730 $ 16.830 $ 13.850 $ 14.920 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment incom(*)................ $ 0.089 $ 0.095 $ 0.133 $ 0.204 $ 0.226 $ 0.233 Net realized and unrealized gain (loss) 0.961 (0.139) 5.172 2.886 3.904 (0.763) -------- -------- -------- -------- -------- -------- Total income (loss) from investment operations......... $ 1.050 $ (0.044) $ 5.305 $ 3.090 $ 4.130 $ (0.530) -------- -------- -------- -------- -------- -------- Less distributions: Dividends from investment income....... $ (0.040) $ (0.090) $ (0.145) $ (0.200) $ (0.200) $ (0.180) Distributions from capital gains....... - (1.366) (3.690) (1.990) (0.840) (0.360) In excess of net realized gain on investments........................... - (0.070) - - (0.110) - --------- -------- -------- -------- -------- -------- Total distributions................ $ (0.040) $ (1.526) $ (3.835) $ (2.190) $ (1.150) $ (0.540) --------- -------- -------- -------- -------- -------- Net asset value, end of period.............. $ 18.640 $ 17.630 $ 19.200 $ 17.730 $ 16.830 $ 13.850 ========== ========== ========== ========== ========== ========== Total return(1)............................. 5.97% 0.14% 32.70% 18.57% 30.34% (3.52%) Ratios/Supplemental Data: Net assets, end of period (000 omitted) $ 139,815 $ 220,965 $ 259,411 $ 208,166 $217,588 $186,016 Ratio of total expenses to average net assets(*) 1.15%(3)(5) 1.11%(3) 1.08%(3) 1.04% 1.04% 1.03% Ratio of net income to average net assets(*) 0.41%(5) 0.46% 0.75% 1.15% 1.44% 1.57% Portfolio turnover rate(2)............. - - 10% 43% 44% 72% - --------------------------------------------------------------------------------------------------------------------------------- (*)For the six months ended June 30, 1999, the administrator and the distributor reduced their fees. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1999(4) Net investment income per share........ $ 0.074 ========== Ratios (As a percentage of average net assets): Expenses........................... 1.22%(3)(5) ========== Net investment income.............. 0.34%(5) ========== - ------------------------------------------------------------------------------- (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. (4)For the six months ended June 30, 1999 (unaudited). (5)Annualized. See notes to financial statements
WRIGHT MANAGED EQUITY TRUST - ------------------------------------------------------------------------------- Financial Highlights
Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- Wright Junior Blue Chip Equities Fund 1999(6)(8) 1998 1997 1996 1995 1994 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period........ $ 9.920 $ 10.480 $ 8.860 $ 10.850 $ 11.000 $ 11.950 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income(1)............... $ 0.001 $ 0.015 $ 0.160 $ 0.067 $ 0.120 $ 0.101 Net realized and unrealized gain (loss) 0.169 (0.530) 2.380 1.738 1.977 (0.431) -------- -------- -------- -------- -------- -------- Total income (loss) from investment operations......... $ 0.170 $ (0.515) $ 2.540 $ 1.805 $ 2.097 $ (0.330) -------- -------- -------- -------- -------- -------- Less distributions: Dividends from investment income....... $ - $ - $ (0.035) $ (0.100) $ (0.100) $ (0.100) Distributions from capital gains....... - (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 period.............. $ 10.090 $ 9.920 $ 10.480 $ 8.860 $ 10.850 $ 11.000 ========== ========== ========== ========== ========== ========== Total return(3) ............................ 1.71% (4.90%) 28.92% 17.53% 20.51% (2.75%) Ratios/Supplemental Data: Net assets, end of period (000 omitted) $ 18,033 $ 34,517 $ 33,490 $ 14,029 $ 25,993 $ 37,124 Ratio of total expenses to average net assets(1) 1.19%(2)(5)(7) 1.17%(2)(5) 1.18%(2)(5) 1.20%(2) 1.17%(2) 1.11% Ratio of net income to average net assets(1) 0.03%(7) 0.05% 0.35% 0.73% 0.89% 0.91% Portfolio turnover rate(4).............. - - 25% 41% 40% 36% - --------------------------------------------------------------------------------------------------------------------------------- (1)For the six months ended June 30, 1999 and the years ended December 31, 1998, 1997, 1996 and 1995, the investment adviser and/or the distributor reduced their fees and the administrator was allocated a portion of the funds operating expenses. Had such actions not been undertaken, net investment income (loss) per share and the ratios would have been as follows: 1999(6) 1998 1997 1996 1995 - --------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) per share. $ (0.019) $ (0.066) $ (0.041) $ 0.048 $ 0.105 ========== ========== ========== ========== ========== Ratios (as a percentage of average net assets): Expenses........................... 1.79%(5)(7) 1.44%(5) 1.62%(5) 1.41% 1.28% ========== ========== ========== ========== ========== Net investment income (loss)....... (0.57%)(7) (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 as follows: 1999(6) 1998 1997 1996 1995 - ---------------------------------------------------------------------------------------------------------------------------- Actual ratio of net expenses 1.17%(7) 1.15% 1.14% 1.15% 1.14% - ---------------------------------------------------------------------------------------------------------------------------- (3)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the 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. (6)For the six months ended June 30, 1999 (unaudited). (7)Annualized. (8)Certain per share amounts are based on average shares outstanding. See notes to financial statements
WRIGHT MANAGED EQUITY TRUST - ------------------------------------------------------------------------------- Financial Highlights
Year Ended December 31, - ---------------------------------------------------------------------------------------------------------------------------------- Wright Major Blue Chip Equities Fund 1999(4) 1998 1997 1996 1995 1994 - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period........ $ 13.670 $ 12.020 $ 12.450 $ 12.650 $ 11.390 $ 12.720 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income(1)............... $ 0.052 $ 0.091 $ 0.100 $ 0.064 $ 0.153 $ 0.180 Net realized and unrealized gain (loss) 1.833 2.324 3.515 2.131 3.107 (0.295) -------- -------- -------- -------- -------- -------- Total income (loss) from investment operations......... $ 1.885 $ 2.415 $ 3.615 $ 2.195 $ 3.260 $ (0.115) -------- -------- -------- -------- -------- -------- Less distributions: Dividends from investment income....... $ (0.025) $ (0.055) $ (0.085) $ (0.120) $ (0.160) $ (0.160) Distributions from capital gains....... - (0.710) (3.960) (2.275) (1.840) (1.055) Return of capital...................... - - - - - - -------- -------- -------- -------- -------- -------- Total distributions................ $ (0.025) $ (0.765) $ (4.045) $ (2.395) $ (2.000) $ (1.215) -------- -------- -------- -------- -------- -------- Net asset value, end of period.............. $ 15.530 $ 13.670 $ 12.020 $ 12.450 $ 12.650 $ 11.390 ========== ========== ========== ========== ========== ========== Total Return(3)............................. 13.80% 20.43% 33.86% 17.63% 28.98% (0.70%) Ratios/Supplemental Data: Net assets, end of period (000 omitted) $ 109,919 $ 50,878 $ 27,721 $ 25,815 $ 49,134 $ 51,085 Ratio of total expenses to average net assets(1)......................... 1.06%(2)(5) 1.07%(2) 1.08%(2) 1.08%(2) 1.07%(2) 0.99% Ratio of net income to average net assets(1) 0.38%(5) 0.49% 0.68% 0.90% 1.19% 1.46% Portfolio turnover rate................ 25% 36% 89% 45% 83% 55% - -------------------------------------------------------------------------------------------------------------------------------- (1)For the six months ended June 30, 1999 and the years ended December 31, 1998, 1997, 1996 and 1995, the distributor 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: 1999(4) 1998 1997 1996 1995 - --------------------------------------------------------------------------------------------------------------------- Net investment income per share........ $ 0.038 $ 0.052 $ 0.049 $ 0.061 $ 0.150 ========== ========== ========== ========== ========== Ratios (As a percentage of average net assets): Expenses........................... 1.16%(5) 1.28% 1.43% 1.12% 1.09% ========== ========== ========== ========== ========== Net investment income.............. 0.28%(5) 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 as follows: 1999(4) 1998 1997 1996 1995 - --------------------------------------------------------------------------------------------------------------------- Actual ratio of net expenses 1.05%(5) 1.05% 1.05% 1.05% 1.05% - --------------------------------------------------------------------------------------------------------------------- (3)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the reinvestment date. (4)For the six months ended June 30, 1999 (unaudited). (5)Annualized. See notes to financial statements
Wright Managed Equity Trust - ------------------------------------------------------------------------------ Financial Highlights
Year Ended December 31, - ---------------------------------------------------------------------------------------------------------------------------- Wright International Blue Chip Equities Fund 1999(4) 1998 1997 1996 1995 1994 - ---------------------------------------------------------------------------------------------------------------------------- Standard Shares - ----------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period........ $16.020 $16.020 $16.690 $14.770 $13.090 $13.410 --------- --------- --------- --------- --------- --------- Income (loss) from investment operations: Net investment income ................. $ 0.021 $ 0.078 $ 0.185 $ 0.128 $ 0.142 $ 0.127 Net realized and unrealized gain (loss) 0.056 0.868 0.048+ 2.902 1.638 (0.347) --------- --------- --------- --------- --------- --------- Total income (loss) from investment operations......... $ 0.077 $ 0.946 $ 0.233 $ 3.030 $ 1.780 $ (0.220) --------- --------- --------- --------- --------- --------- Less distributions: Dividends from investment income....... $ - $ (0.070) $ (0.163) $ (0.100) $ (0.100) $ (0.100) Distributions from capital gains....... (0.287) (0.876) (0.740) (1.010) - - Return of capital...................... - - - - - - --------- --------- --------- --------- --------- --------- Total distributions................ $ (0.287) $ (0.946) $ (0.903) $ (1.110) $ (0.100) $ (0.100) --------- --------- --------- --------- --------- --------- Net asset value, end of period.............. $15.810 $16.020 $16.020 $16.690 $14.770 $13.090 ========== ========== ========== ========== ========== ========== Total return(1)............................. 0.55% 6.14% 1.54% 20.73% 13.61% (1.64%) Ratios/Supplemental Data Net assets, end of period (000 omitted) $134,605 $193,327 $212,698 $268,732 $237,176 $200,232 Ratio of total expenses to average daily net assets...................... 1.52%(3)(5) 1.35%(3) 1.31%(3) 1.30% 1.29% 1.31% Ratio of net income to average daily net assets...................... 0.50%(5) 0.42%(+) 0.82% 0.82% 0.99% 1.00% Portfolio turnover rate(2)............. - - 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. (4)For the six months ended June 30, 1999 (unaudited). (5)Annualized. (+)Per share amount is not in accordance with the net realized and unrealized gain (loss) for the period because of the timing of sales of Fund shares and the amounts per share realized and unrealized gains and losses at such times. See notes to financial statements
WRIGHT MANAGED EQUITY TRUST - ------------------------------------------------------------------------------- Financial Highlights
Year Ended December 31, - ---------------------------------------------------------------------------------------------------------------------------- Wright International Blue Chip Equities Fund 1999(3) 1998 1997(*) - ---------------------------------------------------------------------------------------------------------------------------- Institutional Shares Net asset value, beginning of period........ $ 8.750 $ 9.130 $ 10.000 -------- -------- -------- Income (loss) from Investment Operations: Net investment income ................. $ 0.033 $ 0.159 $ 0.006 Net realized and unrealized gain ...... 0.014 0.487 (0.646)(+) -------- -------- ---------- Total income (loss) from investment operations......... $ 0.047 $ 0.646 $ (0.640) -------- -------- -------- Less distributions: Dividends from investment income....... $ - $ (0.150) $ - Distributions from capital gains....... (0.287) (0.876) (0.230) Return of capital...................... - - - -------- -------- -------- Total distribution................. $ (0.287) $ (1.026) $ (0.230) -------- -------- -------- Net asset value, end of period.............. $ 8.510 $ 8.750 $ 9.130 ========= ========= ========= Total return(1)............................. 0.66% 7.54% (6.37%) Ratios/Supplemental Data: Net assets, end of period (000 omitted) $ 18,148 $ 18,511 $ 45,094 Ratio of total expenses to average daily net assets........................... 1.35%(2)(++) 1.12%(2) 1.16%(2)(++) Ratio of net income to average daily net assets........................... 0.80%(++) 0.73% 0.15%(++) - --------------------------------------------------------------------------------------------------------------------------- (1)Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the reinvestment date. (2)Includes each fund's share of its corresponding portfolio's allocated expenses. (3)For the six months ended June 30, 1999 (unaudited). (+)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 (Unaudited) (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 June 30, 1999 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 th 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. 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 June 30, 1999, only WIBC had an institutional share class. K. Interim Financial Information - The interim financial statements relating to June 30, 1999 and for the six month period then ended have not been audited by independent certified public accountants, but in the opinion of the Trust's management, reflect all adjustments, consisting only of normally recurring adjustments, necessary for the fair presentation of the financial statements. (2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES The Trust has engaged 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 six months ended June 30, 1999, 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. To enhance the net income of the funds, the adviser made a preliminary allocation of its fees by $13,900 and $27,980 for WBC and WJBC, respectively. The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as administrator of the Trust. Under the Administration Agreement, Eaton Vance is responsible for managing the business affairs of the Trust and is compensated based upon a percentage of average daily net assets which rate is reduced as average daily net assets exceed certain levels. For the six months ended June 30, 1999, the effective annual rate was 0.02% for WBC, 0.02% 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 WBC, WJBC and WMBC, the Principal Underwriter made a preliminary reduction of its fee by $45,731, $21,727 and $44,735, respectively. In addition, the Trustees have adopted a service plan (the Service Plan) which allows the funds to reimburse the Principal Underwriter for payments to intermediaries for providing account administration and account maintenance services to their customers who are beneficial owners of shares. The amount of service fee payable under the Service Plan with respect to each class of shares may not exceed 0.25% annually of the average daily net assets attributable to the respective classes. For the six months ended June 30, 1999, the funds did not accrue or pay any service fees. (4) SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in fund shares were as follows:
Six Months Ended Year Ended June 30, 1999 (Unaudited) December 31, 1998 -------------------------------------------------------------- Shares Amount Shares Amount - ---------------------------------------------------------------------------------------------------------------------------- Wright Selected Blue Chip Equities Fund -- Sold................................................... 1,215,329 $ 21,267,121 2,109,096 $ 40,389,405 Issued to shareholders in payment of distributions declared.............................................. 4,627 253,123 877,643 14,839,357 Reacquired............................................. (6,249,533) (107,243,285) (3,967,641) (71,617,605) ------------ -------------- ------------- -------------- Net decrease......................................... (5,029,577) $ (85,723,041) (980,902) $ (16,388,843) ============= ================ ============= ================ Wright Junior Blue Chip Equities Fund -- Sold................................................... 187,257 $ 1,328,196 1,024,797 $ 10,421,975 Issued to shareholders in payment of distributions declared - - 12,811 122,269 Reacquired............................................. (1,879,856) (16,648,567) (753,849) (7,476,001) ----------- -------------- ----------- -------------- Net increase (decrease).............................. (1,692,599) $ (15,320,371) 283,759 $ 3,068,243 ============= ================ ============= ================ Wright Major Blue Chip Equities Fund -- Sold.................................................. 4,760,136 $ 67,735,960 2,262,400 $ 27,942,197 Issued to shareholders in payment of distributions declared 9,628 140,885 171,868 2,268,398 Reacquired............................................. (1,415,667) (20,919,703) (1,017,149) (13,267,151) ----------- -------------- ----------- -------------- Net increase......................................... 3,354,097 $ 46,957,142 1,417,119 $ 16,943,444 ============= ============== ============= =============== Six Months Ended Year Ended June 30, 1999 (Unaudited) December 31, 1998 ------------------------------------------------------------- Shares Amount Shares Amount - --------------------------------------------------------------------------------------------------------------------------- Wright International Blue Chip Equities Fund -- Standard Shares: Sold................................................... 2,726,406 $ 42,224,583 6,595,651 $ 110,930,477 Issued to shareholders in payment of distributions declared.............................................. 169,178 2,578,270 566,574 8,776,474 Reacquired............................................. (6,444,593) (99,557,964) (8,370,704) (137,958,821) ----------- -------------- ----------- -------------- Net decrease......................................... (3,549,009) $ (54,755,111) (1,208,479) $ (18,251,870) ============= ================= ============= ================= Wright International Blue Chip Equities Fund -- Institutional Shares: Issued to shareholders in payment of distributions declare............................................... 73,518 $ 602,849 249,025 $ 2,139,120 Reacquired............................................. (55,918) (465,000) (3,070,822) (27,056,001) ----------- -------------- ----------- -------------- Net increase (decrease)................................ 17,600 $ 137,849 (2,821,797) $ (24,916,881) ============= ================= ============= =================
- ------------------------------------------------------------------------------- (5) INVESTMENT TRANSACTIONS Purchases and sales of investments, other than U.S. Government securities and short-term obligations were as follows: Six Months Ended June 30, 1999 Wright Major Blue Chip Equities Fund - ------------------------------------------------------------------------------ (Unaudited) Purchases....................... $ 67,608,428 ================ Sales........................... $ 21,261,764 ================ - ------------------------------------------------------------------------------ Increases and decreases in each fund's investment in its corresponding Portfolio for the six months ended June 30, 1999 were as follows: WBC WJBC WIBC - ------------------------------------------------------------------------------- (Unaudited) Increases..... $ 21,985,098 $ 1,784,806 $ 42,291,250 Decreases..... (108,726,326) (16,925,841) (101,366,988) - ------------------------------------------------------------------------------ (6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) of the investment securities owned at June 30, 1999, as computed on a federal income tax basis, are as follows: Wright Major Blue Chip Equities Fund - ------------------------------------------------------------------------------- (Unaudited) Aggregate cost.......................... $ 88,787,751 ============= Gross unrealized appreciation........... $ 21,454,693 Gross unrealized depreciation........... (391,823) ------------- Net unrealized appreciation............. $ 21,062,870 ============= - ------------------------------------------------------------------------------- (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 six months ended June 30, 1999. WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------ Wright U.S. Treasury Money Market Fund (WTMM)(+) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------ ASSETS: Total investments, at amortized cost (Note 1A).............................. $83,394,574 ------------ Total assets.......................... $83,394,574 ------------ LIABILITIES: Cash overdraft.......................... $ 2,852,271 Distributions payable................... 242,401 Accrued management fees 10,468 Accrued expenses and other liabilities.. 23,777 ------------ Total liabilities..................... $ 3,128,917 ------------ NET ASSETS................................ $80,265,657 ============== 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................... $80,265,657 ------------ Net assets applicable to outstanding shares $80,265,657 ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING 80,265,657 ============== NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $1.00 ============== (+)The Wright U.S. Treasury Money Market Fund does not invest in a corresponding master portfolio. The amortized cost of securities held at June 30, 1999 is the same as the market value. See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Interest income........................ $ 2,005,431 ------------ Investment income..................... $ 2,005,431 ------------ Expenses - Investment adviser fee (Note 3)........ $ 154,911 Administrator fee (Note 3)............. 31,152 Compensation of Trustees not affiliated with the investment adviser or administrator 1,357 Custodian fee (Note 1C)................ 24,748 Transfer and dividend disbursing agent fees 29,544 Printing............................... 2,938 Audit services......................... 30,580 Legal services......................... 2,530 Registration costs..................... 16,430 Miscellaneous.......................... 197 ------------ Total expenses........................ $ 294,387 ------------ Deduct - Preliminary reduction of investment adviser fee (Note 3).............................. $ 93,179 ------------ Net expenses.......................... $ 201,208 ------------ Net investment income............... $ 1,804,223 ------------ Net increase in net assets from operations $ 1,804,223 ============== See notes to financial statements WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------- Wright U.S. Treasury Money Market Fund (WTMM)(+)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - ------------------------------------------------------------------------------------------------------------------------------ (Unaudited) INCREASE (DECREASE) IN NET ASSETS: Net investment income........................................................ $ 1,804,223 $ 4,347,143 ------------ ------------ Net increase in net assets resulting from operations..................... $ 1,804,223 $ 4,347,143 ------------ ------------ Distributions to shareholders (Note 2) - From net investment income................................................. $ (1,804,223) $ (4,347,143) ------------ ------------ Total distributions...................................................... $ (1,804,223) $ (4,347,143) ------------ ------------ Fund share transactions (Note 5)(+) - Proceeds from shares sold.................................................. $107,108,188 $269,270,734 Reinvestment of dividends.................................................. 1,145,018 2,616,748 Cost of shares reacquired.................................................. (119,310,541) (267,623,266) ------------ ------------ Net increase (decrease) in net assets from fund share transactions........... $(11,057,335) $ 4,264,216 ------------ ------------ Net increase (decrease) in net assets.................................... $(11,057,335) $ 4,264,216 NET ASSETS: At beginning of period....................................................... 91,322,992 87,058,776 ------------ ------------ At end of period............................................................. $ 80,265,657 $ 91,322,992 ============= ============= (+) 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 - ------------------------------------------------------------------------------- Wright U.S. Government Near Term Fund (WNTB) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments - Investments in portfolio, at value (identified cost of $78,135,923) ..... $77,974,066 ------------ Total investments, at value (Note 1A)... $77,974,066 Receivable from adviser................. 14,600 ------------ Total assets.......................... $77,988,666 ------------ LIABILITIES: Payable for fund shares reacquired...... $ 135 Distributions payable................... 337,744 Accrued expenses and other liabilities.. 8,950 ------------ Total liabilities..................... $ 346,829 ------------ NET ASSETS................................ $ 77,641,837 ============== 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................... $ 92,810,863 Accumulated net realized loss on investments (computed on the basis of identified cost) (15,042,387) Unrealized depreciation of investments (computed on the basis of identified cost) (161,857) Undistributed net investment income..... 35,218 -------------- Net assets applicable to outstanding shares $ 77,641,837 ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING 7,712,856 ============== NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $10.07 ============== See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Interest income allocated from portfolio $ 2,601,066 Expenses allocated from portfolio...... (251,611) ------------ Investment income..................... $ 2,349,455 ------------ Expenses - Administrator fee (Note 3)............. $ 8,440 Compensation of Trustees not affiliated with the investment adviser or administrator... 1,291 Custodian fee (Note 1C)................ 8,749 Distribution expenses (Note 4)......... 105,491 Transfer and dividend disbursing agent fees 10,506 Printing............................... 2,919 Audit services......................... 21,016 Legal services......................... 4,795 Registration costs..................... 10,409 Miscellaneous.......................... 862 ------------ Total expenses........................ $ 174,478 ------------ Deduct - Preliminary reduction of distribution expenses by principal underwriter (Note 4)........ $ 34,797 Preliminary allocation of expenses to adviser (Note 3)............................. 14,600 ------------ Total deductions...................... $ 49,397 ------------ Net expenses.......................... $ 125,081 ------------ Net investment income............... $ 2,224,374 ------------ REALIZED AND UNREALIZED LOSS ON INVESTMENTS: Net realized loss on investment transactions from portfolio (identified cost basis). $ (53,189) Net change in unrealized appreciation (depreciation) of investments.......... (1,720,990) ------------ Net realized and unrealized loss on investments........................... $(1,774,179) ------------ Net increase in net assets from operations $ 450,195 ============== See notes to financial statements WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------- Wright U.S. Government Near Term Fund (WNTB)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - --------------------------------------------------------------------------------------------------------------------------------- (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 2,224,374 $ 5,381,356 Net realized loss on investment transactions............................... (53,189) (45,687) Change in unrealized appreciation (depreciation) of investments............ (1,720,990) 580,238 ------------ ------------ Net increase in net assets resulting from operations..................... $ 450,195 $ 5,915,907 ------------ ------------ Distributions to shareholders (Note 2) - From net investment income................................................. $ (2,186,423) $ (5,565,401) ------------ ------------ Total distributions...................................................... $ (2,186,423) $ (5,565,401) ------------ ------------ Fund share transactions (Note 5) - Proceeds from shares sold.................................................. $ 7,286,190 $ 16,447,345 Reinvestment of dividends.................................................. 1,044,421 3,163,303 Cost of shares reacquired.................................................. (20,874,090) (30,604,406) ------------ ------------ Net decrease in net assets from fund share transactions...................... $(12,543,479) $(10,993,758) ------------ ------------ Net decrease in net assets............................................... $(14,279,707) $(10,643,252) NET ASSETS: At beginning of period....................................................... 91,921,544 102,564,796 ------------ ------------ At end of period............................................................. $ 77,641,837 $ 91,921,544 ============= ============= UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD............................................... $ 35,218 $ (2,733) ============= ============= See notes to financial statements
WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------- Wright U.S. Treasury Fund (WUSTB) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments - Investments in portfolio, at value (identified cost of $54,097,856) ..... $54,976,361 ------------ Total investments, at value (Note 1A)... $54,976,361 Receivable for fund shares sold......... 5,000 Receivable from adviser................. 10,200 ------------ Total assets.......................... $54,991,561 ------------ LIABILITIES: Distributions payable................... $ 240,339 Accrued expenses and other liabilities.. 8,579 ------------ Total liabilities..................... $ 248,918 ------------ NET ASSETS................................ $54,742,643 ============== 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................... $53,466,309 Accumulated net realized gain on investments (computed on the basis of identified cost) 390,996 Unrealized appreciation of investments (computed on the basis of identified cost) 878,505 Undistributed net investment income..... 6,833 ------------ Net assets applicable to outstanding shares $54,742,643 ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING 4,053,420 ============== NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $13.51 ============== See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------ INVESTMENT INCOME (Note 1B): Interest income allocated from portfolio $ 1,869,904 Expenses allocated from portfolio...... (181,712) ------------ Investment income..................... $ 1,688,192 ------------ Expenses - Administrator fee (Note 3)............. $ 6,208 Compensation of Trustees not affiliated with the investment adviser or administrator... 2,066 Custodian fee (Note 1C)................ 9,440 Distribution expenses (Note 4)......... 77,212 Transfer and dividend disbursing agent fees 8,742 Printing............................... 2,045 Audit services......................... 2,900 Legal services......................... 26,461 Registration costs..................... 9,886 Miscellaneous.......................... 860 ------------ Total expenses........................ $ 145,820 ------------ Deduct - Preliminary reduction of distribution expenses by principal underwriter (Note 4)........ $ 37,766 Preliminary allocation of expenses to adviser (Note 3).............................. 10,200 ------------ Total deductions...................... $ 47,966 ------------ Net expenses.......................... $ 97,854 ------------ Net investment income............... $ 1,590,338 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions from portfolio (identified cost basis). $ 392,786 Net change in unrealized appreciation (depreciation) of investments.......... (4,192,714) ------------ Net realized and unrealized loss on investments........................... $(3,799,928) ------------ Net decrease in net assets from operations $(2,209,590) ============== See notes to financial statements WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------- Wright U.S. Treasury Fund (WUSTB)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - ---------------------------------------------------------------------------------------------------------------------------------- (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 1,590,338 $ 3,662,667 Net realized gain on investment transactions............................... 392,786 984,728 Change in unrealized appreciation (depreciation) of investments............ (4,192,714) 2,386,702 ------------ ------------ Net increase (decrease) in net assets resulting from operations.......... $ (2,209,590) $ 7,034,097 ------------ ------------ Distributions to shareholders (Note 2) - From net investment income................................................. $ (1,583,505) $ (3,755,230) From net realized gain..................................................... (224,612) (751,891) ------------ ------------ Total distributions...................................................... $ (1,808,117) $ (4,507,121) ------------ ------------ Fund share transactions (Note 5) - Proceeds from shares sold.................................................. $ 6,332,710 $ 18,684,432 Reinvestment of dividends.................................................. 1,060,476 3,313,736 Cost of shares reacquired.................................................. (15,889,194) (31,426,843) ------------ ------------ Net decrease in net assets from fund share transactions...................... $ (8,496,008) $ (9,428,675) ------------ ------------ Net decrease in net assets............................................... $(12,513,715) $ (6,901,699) NET ASSETS: At beginning of period....................................................... 67,256,358 74,158,057 ------------ ------------ At end of period............................................................. $ 54,742,643 $ 67,256,358 ============= ============= UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ 6,833 $ - ============= ============= See notes to financial statements
WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------- Wright Total Return Bond Fund (WTRB)(+) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments - Identified cost....................... $105,408,146 Unrealized depreciation............... (2,598,982) ------------ Total investments, at value (Note 1A)... $102,809,164 Cash.................................... 226,701 Receivable for fund shares sold......... 3,939 Interest receivable..................... 1,581,697 Receivable from investment adviser...... 21,625 ------------ Total assets.......................... $104,643,126 ------------ LIABILITIES: Payable for fund shares reacquired...... $ 28,792 Distributions payable................... 475,491 Accrued expenses and other liabilities.. 18,944 ------------ Total liabilities..................... $ 523,227 ------------ NET ASSETS................................ $104,119,899 ============== 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................... $105,988,496 Accumulated undistributed net realized gain on investments (computed on the basis of identified cost)....................... 740,087 Unrealized depreciation of investments (computed on the basis of identified cost) (2,598,982) Distributions in excess of net investment income (9,702) ------------ Net assets applicable to outstanding shares $104,119,899 ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING 8,338,191 ============== NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST.................... $12.49 ============== (+)The Wright Total Return Bond Fund does not invest in a corresponding master portfolio. See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Interest income........................ $ 3,473,383 ------------ Investment income..................... $ 3,473,383 ------------ Expenses - Investment adviser fee (Note 3)........ $ 230,655 Administrator fee (Note 3)............. 52,397 Compensation of Trustees not affiliated with the investment adviser or administrator... 1,402 Custodian fee (Note 1C)................ 17,045 Distribution expenses (Note 4)......... 141,527 Transfer and dividend disbursing agent fees 26,639 Printing............................... 1,959 Audit services......................... 32,074 Legal services......................... 1,750 Registration costs..................... 15,938 Miscellaneous.......................... 9,737 ------------ Total expenses........................ $ 531,123 ------------ Deduct - Preliminary reduction of investment adviser fee (Note 3).............................. $ 21,625 ------------ Net expenses.......................... $ 509,498 ------------ Net investment income............... $ 2,963,885 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 740,668 Net change in unrealized appreciation (depreciation) of investments.......... (7,997,407) ------------ Net realized and unrealized loss on investments........................... $(7,256,739) ------------ Net decrease in net assets from operations $(4,292,854) ============== See notes to financial statements WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------- Wright Total Return Bond Fund (WTRB)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - --------------------------------------------------------------------------------------------------------------------------------- (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 2,963,885 $ 4,885,375 Net realized gain on investment transactions............................... 740,668 839,997 Change in unrealized appreciation (depreciation) of investments............ (7,997,407) 2,803,169 ------------ ------------ Net increase (decrease) in net assets resulting from operations.......... $ (4,292,854) $ 8,528,541 ------------ ------------ Distributions to shareholders (Note 2) - From net investment income -............................................... $ (2,963,253) $ (4,935,698) From net realized gain..................................................... - (1,048,957) In excess of realized gains................................................ - (6,717) ------------ ------------ Total distributions...................................................... $ (2,963,253) $ (5,991,372) ------------ ------------ Net increase (decrease) in net assets from fund share transactions (Note 5).. $ (4,561,344) $ 33,396,518 ------------ ------------ Net increase (decrease) in net assets.................................... $(11,817,451) $ 35,933,687 NET ASSETS: At beginning of period....................................................... 115,937,350 80,003,663 ------------ ------------ At end of period............................................................. $104,119,899 $115,937,350 ============= ============= DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ (9,702) $ (10,334) ============= ============= See notes to financial statements
WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------- Wright Current Income Fund (WCIF) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments - Investment in portfolio, at value (identified cost of $105,075,238)............... $103,443,048 ------------ Total investments, at value (Note 1A)... $103,443,048 Receivable for fund shares sold......... 8 Receivable from adviser................. 10,250 ------------ Total assets.......................... $103,453,306 ------------ LIABILITIES: Distributions payable................... $ 512,782 Accrued expenses and other liabilities.. 9,679 ------------ Total liabilities..................... $ 522,461 ------------ NET ASSETS................................ $102,930,845 ============== 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................... $105,923,844 Accumulated undistributed net realized loss on investments (computed on the basis of identified cost)....................... (1,152,306) Unrealized depreciation of investments (computed on the basis of identified cost) (1,632,190) Distributions in excess of net investment income................................. (208,503) ------------ Net assets applicable to outstanding shares $102,930,845 ============== Computation of net asset value, offering and redemption price per share: Standard Shares: Net assets............................. $ 79,961,421 ============== Shares of beneficial interest outstanding 7,776,245 ============== Net asset value, offering price, and redemption price per share of beneficial interest................... $ 10.28 ============== Institutional Shares: Net assets............................. $ 22,969,424 ============== SHARES OF BENEFICIAL INTEREST OUTSTANDING 2,347,065 ============== NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $ 9.79 ============== See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1B): Interest income allocated from portfolio $ 3,715,044 Expenses allocated from portfolio...... (317,941) ------------ Investment income..................... $ 3,397,103 ------------ Expenses - Administrator fee (Note 3)............. $ 10,394 Compensation of Trustees not affiliated with the investment adviser or administrator... 1,305 Custodian fee - Standard shares (Note 1C)............. 15,855 Institutional shares (Note 1C)........ 8,006 Distribution expenses - Standard shares (Note 4).............. 107,107 Transfer and dividend disbursing agent fees Standard shares....................... 10,253 Institutional shares.................. 2,730 Printing............................... 964 Audit services......................... 5,890 Legal services......................... 1,795 Registration costs - Standard shares....................... 9,200 Institutional shares.................. 5,737 Miscellaneous.......................... 5,263 ------------ Total expenses........................ $ 184,499 ------------ Deduct - Preliminary reduction of distribution expenses - Standard shares by principal underwriter (Note 4)... $ 17,946 Preliminary allocation of expenses to adviser (Note 3).............................. 10,250 ------------ Total deductions...................... $ 28,196 ------------ Net expenses.......................... $ 156,303 ------------ Net investment income............... $ 3,240,800 ------------ REALIZED AND UNREALIZED LOSS ON INVESTMENTS: Net realized loss on investment transactions (identified cost basis)................ $ (98,697) Change in unrealized appreciation (depreciation) of investments.......... (3,774,755) ------------ Net realized and unrealized loss on investments............................ (3,873,452) ------------ Net decrease in net assets from operations $ (632,652) ============== See notes to financial statements WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------- Wright Current Income Fund (WCIF)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - -------------------------------------------------------------------------------------------------------------------------------- (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 3,240,800 $ 6,436,356 Net realized loss on investment transactions............................... (98,697) (142,545) Change in unrealized appreciation (depreciation) of investments............ (3,774,755) 406,744 ------------ ------------ Net increase (decrease) in net assets resulting from operations.......... $ (632,652) $ 6,700,555 ------------ ------------ Distributions to shareholders (Note 2) - From net investment income - Standard shares.......................................................... $ (2,523,691) $ (5,063,570) Institutional shares..................................................... (694,777) (1,363,651) In excess of net investment income - Standard shares....................... - (4,167) ------------ ------------ Total distributions...................................................... $ (3,218,468) $ (6,431,388) ------------ ------------ Net increase (decrease) in net assets from Fund share transactions (Note 5) - Standard shares.......................................................... $ (7,288,111) $ 13,841,664 Institutional shares..................................................... 577,323 1,363,651 ------------ ------------ Net increase (decrease) in net assets from fund share transactions....... $ (6,710,788) $ 15,205,315 ------------ ------------ Net increase (decrease) in net assets.................................... $(10,561,908) $ 15,474,482 NET ASSETS: At beginning of period....................................................... 113,492,753 98,018,271 ------------ ------------ At end of period............................................................. $102,930,845 $113,492,753 ============= ============= DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD............................................... $ (208,503) $ (230,835) ============= ============= See notes to financial statements
WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------- Financial Highlights
Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- Wright U.S. Treasury Money Market Fund 1999(4) 1998 1997 1996 1995 1994 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Income from investment operations: Net investment income(1).................... 0.020 0.0460 0.04739 0.04745 0.05212 0.03494 -------- -------- -------- -------- -------- -------- Total from investment operations............ 0.020 0.0460 0.04739 0.04745 0.05212 0.03494 Less distributions: Dividends from Investment income............ (0.020) (0.0460) (0.04739) (0.04745) (0.05212) (0.03494) Distributions from capital gains............ - - - - - - Return of capital........................... - - - - - - -------- -------- -------- -------- -------- -------- Total distributions...................... (0.020) (0.0460) (0.04739) (0.04745) (0.05212) (0.03494) -------- -------- -------- -------- -------- -------- Net asset value, end of period................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ========= ========= ========= ========= ========= ========= Total return(2)................................ 4.10% 4.73% 4.84% 4.85% 5.34% 3.55% Ratios/Supplemental Data: Net assets, end of period (000 omitted)..... $80,266 $91,323 $87,059 $95,184 $45,889 $68,877 Ratio of total expenses to average net assets(1).................................. 0.45%(5) 0.45% 0.45% 0.45%(3) 0.46%(3) 0.45% Ratio of net income to average net assets(1) 4.04%(5) 4.61% 4.74% 4.73% 5.22% 3.77% - ------------------------------------------------------------------------------------------------------------------------------- (1)During each of the above periods, the investment adviser voluntarily reduced its fee and in certain periods was allocated a portion of the operating expenses. Had such actions not been undertaken, net investment income per share and the ratios would have been as follows: Net investment income per share................ $ 0.01896 $ 0.04440 $0.04599 $0.04524 $0.05120 $0.03253 ========= ========= ========= ========= ========= ========= Ratios (as a percentage of average daily net assets): Expenses.................................... 0.66%(5) 0.61% 0.59% 0.67% 0.65% 0.71% ========= ========= ========= ========= ========= ========= Net investment income ...................... 3.83%(5) 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 as follows: 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------- Actual ratio of net expenses 0.44% 0.45% - -------------------------------------------------------------------------------------------------------------------------------- (4)For the six months ended June 30, 1999 (unaudited). (5)Annualized. See notes to financial statements
WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------ Financial Highlights
Year Ended December 31, - ---------------------------------------------------------------------------------------------------------------------------------- Wright U.S. Government Near Term Fund 1999(6) 1998 1997 1996 1995 1994 - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period........ $ 10.270 $ 10.240 $ 10.240 $ 10.450 $ 9.920 $ 10.840 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income(1)................. $ 0.265 $ 0.549 $ 0.599 $ 0.606 $ 0.631 $ 0.588 Net realized and unrealized gain (loss).. (0.204) 0.048+ (0.010) (0.212) 0.524 (0.920) -------- -------- -------- -------- -------- -------- Total income (loss) from investment operations............. $ 0.061 $ 0.597 $ 0.589 $ 0.394 $ 1.155 $ (0.332) -------- -------- -------- -------- -------- -------- Less distributions: Dividends from investment income....... $ (0.261) $ (0.567) $ (0.589) $ (0.604) $ (0.625) $ (0.588) Distributions from capital gains....... - - - - - - Return of capital...................... - - - - - - -------- -------- -------- -------- -------- -------- Net asset value, end of period.............. $ 10.070 $ 10.270 $ 10.240 $ 10.240 $ 10.450 $ 9.920 ========= ========= ========= ========= ========= ======== Total return(2)............................. 0.61% 5.98% 5.93% 3.91% 11.93% (3.10%) Ratios/Supplemental Data: Net assets, end of period (000 omitted).. $ 77,642 $ 91,922 $102,565 $ 130,325 $ 143,600 $212,122 Ratio of total expenses to average net assets 0.91%(4)(7) 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 income to average net assets 5.26%(7) 5.38% 5.82% 5.90% 6.20% 5.70% Portfolio turnover rate(3)............... - - 4% 28% 21% 33% - ------------------------------------------------------------------------------------------------------------------------------- (1)During the period ended June 30,1999 and 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, a reduction in distribution fees, a reduction in administrator fees, or a combination, thereof. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1999(6) 1998 1997 --------------------------------- Net investment income per share........ $ 0.259 $ 0.546 $ 0.597 ========= ========= ========= Ratios (As a percentage of average net assets): Expenses........................... 1.02%(4)(7) 0.91%(4) 0.89%(4) ========= ========= ========= Expenses after custodian fee reduction - 0.90%(4) - ========= ========= ========= Net investment income.............. 5.15%(7) 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. (6)For the six months ended June 30, 1999 (unaudited). (7)Annualized. (+)Per share amount is not in accordance with the net realized and unrealized gain (loss) for the period because of the timing of sales of Fund shares and the amounts per share of realized and unrealized gains and losses at such times. See notes to financial statements
WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------- Financial Highlights
Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- Wright U.S. Treasury Fund 1999(7) 1998 1997 1996(3) 1995 1994 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period........ $ 14.400 $ 13.950 $ 13.580 $ 14.710 $ 12.250 $ 14.360 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income(1)................. $ 0.356 $ 0.724 $ 0.721 $ 0.769 $ 0.880 $ 0.880 Net realized and unrealized gain (loss).. (0.843) 0.632 0.462 (0.973) 2.458 (2.110) -------- -------- -------- -------- -------- -------- Total income (loss) from investment operations............. $ (0.487) $ 1.356 $ 1.183 $ (0.204) $ 3.338 $ (1.230) -------- -------- -------- -------- -------- -------- Less distributions: Dividends from investment income......... $ (0.354) $ (0.741) $ (0.703) $ (0.756) $ (0.878) $ (0.880) Distributions from capital gains......... (0.049) (0.165) (0.110) (0.170) - - Return of capital........................ - - - - - -------- -------- -------- -------- -------- -------- Total distributions.................... $ (0.403) $ (0.906) $ (0.813) $ (0.926) $ (0.878) $ (0.880) -------- -------- -------- -------- -------- -------- Net asset value, end of period.............. $ 13.510 $ 14.400 $ 13.950 $ 13.580 $ 14.710 $ 12.250 ========= ========= ========= ========= ========= ========= Total return(2)............................. (3.42%) 9.95% 9.09% (1.23%) 28.18% (8.66%) Ratios/Supplemental Data: Net assets, end of period (000 omitted).. $ 54,743 $ 67,256 $ 74,158 $ 54,978 $ 15,156 $ 16,658 Ratio of total expenses to average net assets............................ 0.94%(5)(8) 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). 0.91%(5)(8) 0.90%(5) 0.87%(5) - - - Ratio of net income to average net assets 5.15%(8) 5.09% 5.34% 5.50% 6.60% 6.90% Portfolio turnover rate(4)............... - - 1% 65% 8% 1% - -------------------------------------------------------------------------------------------------------------------------------- (1)During the period ended June 30, 1999 and 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, a reduction in distribution fees by the distributor, a reduction in administrator fees, or a combination thereof. Had such action not been undertaken, the net investment income per share and the ratios would have been as follows: 1999(7) 1998 1997 1996 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------- Net investment income per share............. $ 0.346 $ 0.721 $ 0.720 $ 0.769 $ 0.827 $ 0.854 ========= ========= ========= ========= ========= ========= Ratios (as a percentage of average net assets): Expenses .............................. 1.09%(5)(8) 0.96%(5) 1.02%(5) 0.90% 1.20% 1.10% ========= ========= ========= ========= ========= ========= Expenses after custodian fee reduction... 1.06%(5)(8) 0.92%(5) 0.89%(5) - - - ========= ========= ========= ========= ========= ========= Net investment income.................... 5.00%(8) 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. (7)For the six months ended June 30, 1999 (unaudited). (8)Annualized. See notes to financial statements
Wright Managed Income Trust - ------------------------------------------------------------------------------- Financial Highlights
Year Ended December 31, - ------------------------------------------------------------------------------------------------------------------------------- Wright Total Return Bond Fund 1999(4) 1998 1997 1996(3) 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period........ $ 13.310 $ 12.930 $ 12.500 $ 13.120 $ 11.430 $ 13.010 -------- -------- --------- -------- -------- -------- Income (loss) from investment operations: Net investment income(1)................. $ 0.335 $ 0.680 $ 0.690 $ 0.720 $ 0.758 $ 0.740 Net realized and unrealized gain (loss).. (0.820) 0.524 0.427 (0.631) 1.685 (1.580) -------- -------- --------- -------- -------- -------- Total income (loss) from investment operations............. $ (0.485) $ 1.204 $ 1.117 $ 0.089 $ 2.443 $ (0.840) --------- -------- --------- -------- -------- -------- Less distributions: Dividends from investment income......... $ (0.335) $ (0.690) $ (0.687) $ (0.709) $ (0.753) $ (0.740) Distributions from capital gains......... - (0.133) - - - - In excess of net realized gain on investments - (0.001) - - - - -------- -------- -------- -------- -------- -------- Total distributions.................... $ (0.335) $ (0.824) $ (0.687) $ (0.709) $ (0.753) $ (0.740) -------- -------- -------- -------- -------- -------- Net asset value, end of period.............. $ 12.490 $ 13.310 $ 12.930 $ 12.500 $ 13.120 $ 11.430 ========= ========= ========= ========= ========= ========= Total return(2)............................. (3.69%) 9.56% 9.25% 0.87% 21.97% (6.57%) Ratios/Supplemental Data: Net assets, end of period (000 omitted).. $104,120 $115,937 $ 80,004 $ 91,382 $ 122,762 $143,497 Ratio of total expenses to average net assets 0.90%(5) 0.90% 0.90% 0.80% 0.80% 0.80% Ratio of net income to average net assets 5.24%(5) 5.18% 5.50% 5.70% 6.20% 6.10% Portfolio turnover rate.................. 19% 26% 34% 96% 50% 32% - ------------------------------------------------------------------------------------------------------------------------------ (1)For the period ended June 30, 1999, the investment adviser reduced its fee. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1999(4) Net investment income per share........ $ 0.332 ========= Ratios (As a percentage of average net assets): Expenses........................... 0.94%(5) ========= Net investment income.............. 5.28%(5) ========= - ---------------------------------------------------------------------------------------------------------------------------------- (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)For the six months ended June 30, 1999 (unaudited). (5)Annualized. See notes to financial statements
WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------- Financial Highlights
Year Ended December 31, - ------------------------------------------------------------------------------------------------------------------------------ Wright Current Income Fund 1999(5) 1998 1997 1996 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------ Standard Shares - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period........ $ 10.660 $ 10.630 $ 10.430 $ 10.670 $ 9.710 $ 10.750 -------- -------- -------- -------- -------- -------- Income (loss) from investment operations: Net investment income(1)................. $ 0.279 $ 0.646 $ 0.658 $ 0.674 $ 0.696 $ 0.690 Net realized and unrealized gain (loss).. (0.353) 0.028 0.206 (0.239) 0.955 (1.040) -------- -------- -------- -------- -------- -------- Total income (loss) from investment operations........... $ (0.074) $ 0.674 $ 0.864 $ 0.435 $ 1.651 $ (0.350) -------- -------- -------- -------- -------- -------- Less distributions: Dividends from investment income......... $ (0.306) $ (0.643) $ (0.664) $ (0.675) $ (0.691) $ (0.690)(*) Distributions from capital gains......... - - - In excess of net investment income....... - (0.001) - - - - -------- -------- -------- -------- -------- -------- Total distributions.................. $ (0.306) $ (0.644) $ (0.664) $ (0.675) $ (0.691) $ (0.690) -------- -------- -------- -------- -------- -------- Net asset value, end of period.............. $ 10.280 $ 10.660 $ 10.630 $ 10.430 $ 10.670 $ 9.710 ========= ========= ========= ========= ========= ========= Total return(2)............................. (0.71%) 6.51% 8.56% 4.31% 17.46% (3.30%) Ratios/Supplemental Data: Net assets, end of period (000 omitted).. $ 80,452 $ 90,262 $ 76,217 $ 64,623 $ 66,345 $84,178 Ratio of total expenses to average net assets 0.90%(4)(6) 0.90%(4) 0.89%(4) 0.90%(4) 0.90%(4) 0.80% Ratio of net income to average net assets 5.93%(4)(6) 6.03% 6.44% 6.50% 6.80% 6.90% Portfolio turnover rate(3)............... - - 3.00% 9.00% 26.00% 10.00% - ------------------------------------------------------------------------------------------------------------------------------- (*)Includes distribution in excess of net investment income of $.00013 per share. (1)For the period ended June 30, 1999 and for the years ended December 31, 1998 and 1997, the distributor and/or the administrator reduced its fees. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1999(5) 1998 1997 -------- -------- -------- Net investment income per share........ $ 0.283 $ 0.644 $ 0.652 ========= ========= ========= Ratios (As a percentage of average net assets): Expenses........................... 0.98%(4)(6) 0.92%(4) 0.95%(4) ========= ========= ========= Net investment income.............. 6.01%(4)(6) 6.01% 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)For the six months ended June 30, 1999 (unaudited). (6)Annualized.
See notes to financial statements WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------- Financial Highlights
Year Ended December 31, - ------------------------------------------------------------------------------------------------------------------------------- Wright Current Income Fund - continued 1999(6) 1998 1997(*) - ------------------------------------------------------------------------------------------------------------------------------- Institutional Shares - ------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period........ $ 10.150 $ 10.120 $ 10.000 ---------- ---------- --------- Income (loss) from investment operations: Net investment income(1)................. $ 0.280 $ 0.619 $ 0.313 Net realized and unrealized gain (loss).. (0.340) 0.026 0.120 ---------- --------- ---------- Total income (loss) from investment operations........... $ (0.060) $ 0.645 $ 0.433 --------- -------- -------- Less distributions: Dividends from investment income......... $ (0.300) $ (0.615) $ (0.313)(5) Distributions from capital gains......... - Return of capital........................ - - --------- -------- -------- Total distributions.................. $ (0.300) $ (0.615) $ (0.313) ---------- -------- -------- Net asset value, end of period.............. $ 9.790 $ 10.150 $ 10.120 ========= ========= ========= Total return(2)............................. (0.62%) 6.56% 4.40% Ratios/Supplemental Data: Net assets, end of period (000 omitted).. $ 22,479 $ 23,231 $ 21,801 Ratio of total expenses to average net assets 0.76%(3)(4) 0.75%(3) 0.48%(3)(4) Ratio of net income to average net assets 6.08%(4) 6.11% 4.70%(4) Portfolio turnover rate(3)............... - - 2.00% - ----------------------------------------------------------------------------------------------------------------------------------- (1)For the period ended June 30, 1999 and for the years ended December 31, 1998 and 1997, the operating expenses of the fund were reduced by a reduction in distribution fees by the distributor and/or the administrator. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1999(6) 1998 1997(*) - --------------------------------------------------------------------------------------------------------------------------- Net investment income per share.......... $ 0.282 $ 0.644 $ 0.652 ========= ========= ========= Ratios (as a percentage of average net assets): Expenses............................... 0.80%(3)(4) 0.92%(3) 0.95%(3) ========= ========= ========= Net investment income.................. 6.12%(4) 6.01% 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)Includes each fund's share of its corresponding portfolio's allocated expenses. (4)Annualized. (5)Includes distribution in excess of net investment income of $0.00001 per share. (6)For the six months ended June 30, 1999 (unaudited). (*)For the period from July 7, 1997 (inception of offering of institutional shares) to December 31, 1997.
See notes to financial statements WRIGHT MANAGED INCOME TRUST - ------------------------------------------------------------------------------ Notes to Financial Statements (Unaudited) (1) SIGNIFICANT ACCOUNTING POLICIES The Wright Managed Income Trust (the Trust), issuer of Wright U.S. Treasury Money Market Fund (WTMM) series, Wright U.S. Government Near Term Fund (WNTB) series, Wright U.S. 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 June 30, 1999 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 marke 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 current 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 June 30, 1999, only WCIF had an institutional share class. H. Interim Financial Information - The interim financial statements relating to June 30, 1999 and for the six month period then ended have not been audited by independent certified public accountants, but in the opinion of the Trust's management, reflect all adjustments, consisting only of normally recurring adjustments, necessary for the fair presentation of the financial statements. (2) 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. (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 six months ended June 30, 1999, 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 preliminary reduction of its investment adviser fee by $93,179 and $21,625 for WTMM and WTRB, respectively. Additionally, $14,600, $10,200 and $10,250 of expenses were allocated to the investment adviser on a preliminary basis for WNTB, WUSTB and WCIF, respectively. The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as administrator of the Trust. Under the Administration Agreement, Eaton Vance is responsible for managing the business affairs of the Trust and is compensated based upon a percentage of average daily net assets which rate is reduced as average daily net assets exceed certain levels. For the six months ended June 30, 1999, 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 preliminary reduction of its fee by $34,797, $37,766, and $17,946, 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 six months ended June 30, 1999, the funds did not accrue or pay any service fees. (5) SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in fund shares were as follows:
Six Months Ended Year Ended June 30, 1999 (Unaudited) December 31, 1998 --------------------------------------------------------- Shares Amount Shares Amount - ------------------------------------------------------------------------------------------------------------------------ Wright U.S. Government Near Term Fund -- Sales............................................... 724,074 $ 7,286,190 1,605,556 $ 16,447,345 Issued to shareholders in payment of distributions declared............................. 125,463 1,044,421 314,121 3,163,303 Redemptions.......................................... (2,083,637) (20,874,090) (2,989,009) (30,604,406) ---------- ------------- ---------- ------------- Net decrease..................................... (1,234,100) $ (12,543,479) (1,069,332) $ (10,993,758) ============ ================ ============ ================ Wright U.S. TREASURY Fund -- Sales................................................ 453,938 $ 6,332,710 1,302,718 $ 18,684,432 Issued to shareholders in payment of distributions declared.......................... 89,765 1,060,476 231,734 3,313,736 Redemptions.......................................... (1,161,637) (15,889,194) (2,179,531) (31,426,843) ---------- ------------- ---------- ------------- Net decrease..................................... (617,934) $ (8,496,008) (645,079) $ (9,428,675) ============ ================ ============ ================ Wright Total Return Bond Fund -- Sales................................................ 2,136,310 $ 27,462,470 3,355,655 $ 44,394,191 Issued to shareholders in payment of distributions declared.......................... 171,030 1,860,246 344,502 4,544,209 Redemptions.......................................... (2,676,855) (33,884,060) (1,178,486) (15,541,882) ---------- ------------- ---------- ------------- Net increase (decrease).......................... (369,515) $ (4,561,344) 2,521,671 $ 33,396,518 ============ ================ ============ ================ Wright Current Income Fund -- Standard Shares Sales................................................ 969,707 $ 10,142,213 2,263,717 $ 24,121,027 Issued to shareholders in payment of distributions declared.......................... 148,902 1,299,438 310,036 3,306,097 Redemptions.......................................... (1,808,399) (18,729,762) (1,275,036) (13,585,460) ---------- ------------- ---------- ------------- Net increase (decrease).......................... (689,790) $ (7,288,111) 1,298,717 $ 13,841,664 ============ ================ ============ ================ Wright Current Income Fund -- Institutional Shares Issued to shareholders in payment of distributions declared.......................... 57,521 $ 577,323 134,484 $ 1,363,651 ---------- ------------- ---------- ------------- Net increase..................................... 57,521 $ 577,323 134,484 $ 1,363,651 ============ ================ ============ ================
(6) INVESTMENT TRANSACTIONS The Trust invests primarily in debt securities. The ability of the issuers of the debt securities held by the Trust to meet their obligations may be affected by economic developments in a specific industry or municipality. Purchases and sales and maturities of investments, other than short-term obligations, were as follows: Six Months Ended June 30, 1999 Wright Total Return Bond Fund - ------------------------------------------------------------------------------- (Unaudited) Purchases -- Non-U.S. Obligations $ 11,323,146 ============== U.S. Gov't Obligations $ 11,542,051 ============== Sales -- Non-U.S. Gov't Obligation $ 3,195,132 ============== U.S. Gov't Obligations $ 17,881,996 ============== Increases and decreases in each fund's investment in its corresponding Portfolio for the six months ended June 30, 1999 were as follows: (Unaudited) WNTB WUSTB WCIF - ------------------------------------------------------------------------------- Increases $ 7,390,835 $ 6,366,941 $10,206,894 Decreases (22,192,008) (16,608,489) (19,994,239) (7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) at June 30, 1999, as computed on a federal income tax basis, are as follows: Wright Total Return (Unaudited) Bond Fund - ------------------------------------------------------------------------------ Aggregate cost............................ $ 105,408,146 ============= Gross unrealized appreciation............. $ 821,177 Gross unrealized depreciation............. (3,420,159) ------------ Net unrealized depreciation............... $ (2,598,982) ============= (8) LINE OF CREDIT The funds participate with other funds managed by Wright in a committed $20 million unsecured line of credit agreement with a bank. The funds may temporarily borrow from the line of credit to satisfy redemption requests or settle investment transactions. Interest is charged to each fund based on its borrowings at an amount above the federal funds rate. In addition, a fee computed at an annual rate of 0.10% on the average daily unused portion of the $20 million line of credit, is allocated among the participating funds at the end of each quarter. The funds did not have significant borrowings or allocated fees during the six months ended June 30, 1999. WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------ Selected Blue Chip Equities Portfolio (SBCP) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------ ASSETS: Investments - Identified cost....................... $103,145,048 Unrealized appreciation............... 38,507,886 ------------ Total investments, at value (Note 1A). $141,652,934 Cash.................................... 1,697 Dividends and interest receivable....... 119,661 Deferred organization expenses (Note 1C) 17,948 ------------ Total Assets.......................... $141,792,240 ------------ LIABILITIES: Payable for investments purchased....... $ 1,694,810 Accrued expenses and other liabilities.. 16,542 ------------ Total Liabilities...................... $ 1,711,352 ------------ NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO........ $140,080,888 ============= SOURCES OF NET ASSETS: Net proceeds from capital contributions and withdrawals............................ $101,573,002 Unrealized appreciation of investments (computed on the basis of identified cost) 38,507,886 ------------ Total................................. $140,080,888 ============= See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1G): Income - Dividends.............................. $ 1,264,124 Interest............................... 35,446 ------------ Total income.......................... $ 1,299,570 ------------ Expenses - Investment adviser fee (Note 2)........ $ 503,649 Administrator fee (Note 2)............. 115,911 Compensation of Trustees not affiliated with the investment adviser or administrator 1,000 Custodian fee (Note 1D)................ 37,004 Interest expense....................... 17,231 Audit fees............................. 29,998 Legal.................................. 918 Amortization of organization expenses (Note 1C) 2,862 Printing............................... 2,723 ------------ Total expenses........................ $ 711,296 ------------ Deduct - Reduction of custodian fee (Note 1D).. 1,217 ------------ Net expenses..................... $ 710,079 ------------ Net investment income......... $ 589,491 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $21,681,443 Change in unrealized appreciation (depreciation) of investments ......... (17,105,509) ------------ Net realized and unrealized gain on investments......................... $ 4,575,934 ------------ Net increase in net assets from operations.................... $ 5,165,425 ============= See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------- Selected Blue Chip Equities Portfolio (SBCP)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - -------------------------------------------------------------------------------------------------------------------------------- (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 589,491 $ 2,011,687 Net realized gain on investments........................................... 21,681,443 15,538,127 Change in unrealized appreciation (depreciation) of investments........................................................... (17,105,509) (20,336,710) ------------ ------------ Net increase (decrease) in net assets from operations.................... $ 5,165,425 $ (2,786,896) ------------ ------------ Capital transactions - Contributions.............................................................. $ 21,985,098 $ 40,294,485 Withdrawals................................................................ (108,726,326) (75,343,029) ------------ ------------ Decrease in net assets resulting from capital transactions................... $(86,741,228) $(35,048,544) ------------ ------------ Net decrease in net assets................................................... $(81,575,803) $(37,835,440) NET ASSETS: At beginning of period....................................................... 221,656,691 259,492,131 ------------ ------------ At end of period............................................................. $140,080,888 $ 221,656,691 ============= ============= See notes to financial statements
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------ Junior Blue Chip Equities Portfolio (JBCP) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments - Identified cost....................... $17,342,866 Unrealized appreciation............... 555,112 ------------ Total investments, at value (Note 1A). $17,897,978 Cash.................................... 89,231 Dividends and interest receivable....... 24,868 Deferred organization expenses (Note 1C) 17,948 ------------ Total Assets.......................... $18,030,025 ------------ LIABILITIES: Accrued expenses and other liabilities.. $ 10,868 ------------ Total Liabilities...................... $ 10,868 ------------ NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO........ $18,019,157 ============= SOURCES OF NET ASSETS: Net proceeds from capital contributions and withdrawals............................ $17,464,045 Unrealized appreciation of investments (computed on the basis of identified cost) 555,112 ------------ Total................................. $18,019,157 ============= See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1G): Income - Dividends.............................. $ 134,314 Interest............................... 6,724 ------------ Total income.......................... $ 141,038 ------------ Expenses - Investment adviser fee (Note 2)........ $ 64,611 Administrator fee (Note 2)............. 23,500 Compensation of Trustees not affiliated with the investment adviser or administrator 917 Custodian fee (Note 1D)................ 19,968 Interest expense....................... 3,134 Audit fees............................. 22,992 Legal services......................... 918 Amortization of organization expenses (Note 1C)............................. 2,862 Miscellaneous.......................... 1,021 ------------ Total expenses........................ $ 139,923 ------------ Deduct -.............................. Preliminary reduction of investment adviser fee (Note 2)....................... $ 20,287 Reduction of custodian fee (Note 1D).. 2,193 ------------ Total deductions................... $ 22,480 ------------ Net expenses..................... $ 117,443 ------------ Net investment income......... $ 23,595 ------------ REALIZED AND UNREALIZED LOSS ON INVESTMENTS: Net realized loss on investment transactions (identified cost basis)................ $ (291,391) Change in unrealized appreciation (depreciation) of investments.......... (875,499) ------------ Net realized and unrealized loss on investments............................ $(1,166,890) ------------ Net decrease in net assets from operations.................... $(1,143,295) ============= See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------ Junior Blue Chip Equities Portfolio (JBCP)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - ---------------------------------------------------------------------------------------------------------------------------------- (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 23,595 $ 110,147 Net realized gain (loss) on investments.................................... (291,391) 154,874 Change in unrealized appreciation (depreciation) of investments........................................................... (875,499) (2,056,708) ------------ ------------ Net decrease in net assets from operations............................... $ (1,143,295) $ (1,791,687) ------------ ------------ Capital transactions - Contributions.............................................................. $ 1,784,806 $ 10,001,530 Withdrawals................................................................ (16,925,841) (7,395,707) ------------ ------------ Increase (decrease) in net assets resulting from capital transactions........................................ $(15,141,035) $ 2,605,823 ------------ ------------ Net increase (decrease) in net assets........................................ $(16,284,330) $ 814,136 NET ASSETS: At beginning of period....................................................... 34,303,487 33,489,351 ------------ ------------ At end of period............................................................. $ 18,019,157 $ 34,303,487 ============= ============= See notes to financial statements
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------- International Blue Chip Equities Portfolio (IBCP) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments - Identified cost....................... $133,399,728 Unrealized appreciation............... 16,822,210 ------------ Total investments, at value (Note 1A). $150,221,938 Foreign currency at value (identified cost $1,928,273)........... 1,975,327 Cash.................................... 378 Receivable for investment sold.......... 2,914,334 Receivable for open forward foreign currency exchange contracts (Note 1H & 5)....... 15,159 Dividends and interest receivable....... 291,449 Deferred organization expenses (Note 1C) 17,948 Other assets............................ 246,884 ------------ Total Assets.......................... $155,683,417 ------------ LIABILITIES: Payable for investments purchased....... $ 2,838,570 Accrued expenses and other liabilities.. 50,207 ------------ Total Liabilities...................... $ 2,888,777 ------------ NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO........ $152,794,640 ============= SOURCES OF NET ASSETS: Net proceeds from capital contributions and withdrawals............................ $136,019,484 Unrealized appreciation of investments and foreign currency transactions (computed on the basis of identified cost)....... 16,775,156 ------------ Total................................. $152,794,640 ============= See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1G): Income - Dividends.............................. $ 1,993,619 Interest............................... 58,905 Less: Foreign taxes.................... (227,754) ------------ Total income.......................... $ 1,824,770 ------------ Expenses - Investment adviser fee (Note 2)........ $ 687,466 Administrator fee (Note 2)............. 119,151 Compensation of Trustees not affiliated with the investment adviser or administrator 980 Custodian fee (Note 1D)................ 148,215 Interest expense....................... 25,606 Audit fees............................. 29,998 Amortization of organization expenses (Note 1C)............................. 2,862 Miscellaneous.......................... 3,511 ------------ Total expenses........................ $ 1,017,789 ------------ Net investment income................ $ 806,981 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment and foreign currency transactions(identified cost basis)$23,789,884 Change in unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currencies...... (24,957,029) ------------ Net realized and unrealized loss on investments and foreign currency....... $(1,167,145) ------------ Net decrease in net assets from operations.................... $ (360,164) ============= See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------- International Blue Chip Equities Portfolio (IBCP)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - ------------------------------------------------------------------------------------------------------------------------------ (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 806,981 $ 1,985,552 Net realized gain on investments........................................... 23,789,884 20,726,522 Change in unrealized appreciation (depreciation) of investments............ (24,957,029) (11,296,007) ------------ ------------ Net increase (decrease) in net assets from operations.................... $ (360,164) $ 11,416,067 ------------ ------------ Capital transactions - Contributions.............................................................. $ 42,291,250 $110,766,485 Withdrawals................................................................ (101,366,988) (166,998,630) ------------ ------------ Decrease in net assets resulting from capital transactions................... $(59,075,738) $(56,232,145) ------------ ------------ Net decrease in net assets................................................... $(59,435,902) $(44,816,078) NET ASSETS: At beginning of period....................................................... 212,230,542 257,046,620 ------------ ------------ At end of period............................................................. $152,794,640 $ 212,230,542 ============= ============= See notes to financial statements
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------- U.S. Government Near Term Portfolio (NTBP) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments - Identified cost....................... $76,657,493 Unrealized depreciation............... (161,857) ------------ Total investments, at value (Note 1A). $76,495,636 Cash.................................... 173,326 Interest receivable..................... 1,299,832 Deferred organization expenses (Note 1C) 17,001 ------------ Total assets.......................... $77,985,795 ------------ LIABILITIES: Accrued expenses and other liabilities.. $ 11,718 ------------ NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO........ $77,974,077 ============= SOURCES OF NET ASSETS: Net proceeds from capital contributions and withdrawals............................ $78,135,934 Unrealized depreciation of investments (computed on the basis of identified cost) (161,857) ------------ Total................................. $77,974,077 ============= See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1G): Income - Interest Income........................ $ 2,601,066 ------------ Expenses - Investment adviser fee (Note 2)........ $ 169,261 Administrator fee (Note 2)............. 42,315 Compensation of Trustees not affiliated with the investment adviser or administrator 983 Custodian fee (Note 1D)................ 19,031 Transfer agent fee..................... 9,912 Audit fees............................. 8,265 Legal fees............................. 735 Printing............................... 1,117 Amortization of organization expenses (Note 1C)............................. 2,878 ------------ Total expenses........................ $ 254,497 ------------ Deduct -.............................. Reduction of custodian fee (Note 1D).. 2,886 ------------ Net expenses....................... $ 251,611 ------------ Net investment income............ $ 2,349,455 ------------ REALIZED AND UNREALIZED LOSS ON INVESTMENTS: Net realized loss on investment transactions (identified cost basis)................ $ (53,189) Net change in unrealized depreciation of investments......................... (1,720,990) ------------ Net realized and unrealized loss on investments......................... $(1,774,179) ------------ Net increase in net assets from operations.................... $ 575,276 ============= See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------- U.S. Government Near Term Portfolio (NTBP)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - ----------------------------------------------------------------------------------------------------------------------------- (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 2,349,455 $ 5,724,793 Net realized loss on investments........................................... (53,189) (45,686) Change in unrealized appreciation (depreciation) of investments............ (1,720,990) 580,237 ------------ ------------ Net increase in net assets from operations............................... $ 575,276 $ 6,259,344 ------------ ------------ Capital transactions - Contributions.............................................................. $ 7,390,835 $ 17,618,408 Withdrawals................................................................ (22,192,009) (34,539,216) ------------ ------------ Decrease in net assets resulting from capital transactions................... $(14,801,174) $(16,920,808) ------------ ------------ Net decrease in net assets................................................... $(14,225,898) $(10,661,464) NET ASSETS: At beginning of period....................................................... 92,199,975 102,861,439 ------------ ------------ At end of period............................................................. $ 77,974,077 $ 92,199,975 ============= ============= See notes to financial statements
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------- U.S. Treasury Portfolio (USTBP) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------ ASSETS: Investments - Identified cost....................... $51,177,651 Unrealized appreciation............... 878,505 ------------ Total investments, at value (Note 1A). $52,056,156 Cash.................................... 2,120,778 Interest receivable..................... 790,267 Deferred organization expenses (Note 1C) 16,972 ------------ Total assets.......................... $54,984,173 ------------ LIABILITIES: Accrued expenses and other liabilities.. $ 7,801 ------------ NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO........ $54,976,372 ============= SOURCES OF NET ASSETS: Net proceeds from capital contributions and withdrawals............................ $54,097,867 Unrealized appreciation of investments (computed on the basis of identified cost) 878,505 ------------ Total................................. $54,976,372 ============= See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1G): Income - Interest Income........................ $ 1,869,904 ------------ Expenses - Investment adviser fee (Note 2)........ $ 123,776 Administrator fee (Note 2)............. 30,944 Compensation of Trustees not affiliated with the investment adviser or administrator 983 Custodian fee (Note 1D)................ 17,210 Audit fees............................. 8,080 Legal fees............................. 735 Amortization of organization expenses (Note 1C)............................. 2,887 Miscellaneous.......................... 6,847 ------------ Total expenses........................ $ 191,462 ------------ Deduct -.............................. Reduction of custodian fee (Note 1D).. 9,750 ------------ Net expenses....................... $ 181,712 ------------ Net investment income............ $ 1,688,192 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 392,786 Net change in unrealized appreciation (depreciation) of investments.......... (4,192,715) ------------ Net realized and unrealized loss on investments......................... $(3,799,929) ------------ Net decrease in net assets from operations.................... $(2,111,737) ============= See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------ U.S. Treasury Portfolio (USTBP)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - -------------------------------------------------------------------------------------------------------------------------------- (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 1,688,192 $ 3,926,971 Net realized gain on investments........................................... 392,786 984,728 Change in unrealized appreciation (depreciation) of investments............ (4,192,715) 2,386,702 ------------ ------------ Net increase (decrease) in net assets from operations.................... $ (2,111,737) $ 7,298,401 ------------ ------------ Capital transactions - Contributions.............................................................. $ 6,366,945 $ 18,675,207 Withdrawals................................................................ (16,608,489) (33,182,454) ------------ ------------ Decrease in net assets resulting from capital transactions................... $(10,241,544) $(14,507,247) ------------ ------------ Net decrease in net assets................................................... $(12,353,281) $ (7,208,846) NET ASSETS: At beginning of period....................................................... 67,329,653 74,538,499 ------------ ------------ At end of period............................................................. $ 54,976,372 $ 67,329,653 ============= ============= See notes to financial statements
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------- Current Income Portfolio (CIFP) STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- ASSETS: Investments - Identified cost....................... $107,067,001 Unrealized depreciation............... (1,632,190) ------------ Total investments, at value (Note 1A). $105,434,811 Cash.................................... 4,347 Interest receivable..................... 590,092 Deferred organization expenses (Note 1C) 16,797 ------------ Total assets.......................... $106,046,047 ------------ LIABILITIES: Payable for investments purchased....... $ 2,574,463 Accrued management fees................. 12,419 Accrued expenses and other liabilities.. 16,107 ------------ Total liabilities..................... $ 2,602,989 ------------ NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO........ $103,443,058 ============= SOURCES OF NET ASSETS: Net proceeds from capital contributions and withdrawals............................ $105,075,248 Unrealized depreciation of investments (computed on the basis of identified cost) (1,632,190) ------------ Total................................. $103,443,058 ============= See notes to financial statements STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - ------------------------------------------------------------------------------- INVESTMENT INCOME (Note 1G): Income - Interest Income........................ $ 3,715,044 ------------ Expenses - Investment adviser fee (Note 2)........ $ 220,917 Administrator fee (Note 2)............. 51,552 Compensation of Trustees not affiliated with the investment adviser or administrator 917 Custodian fee (Note 1D)................ 31,540 Audit fees............................. 20,747 Legal fees............................. 735 Amortization of organization expenses (Note 1C)............................. 2,887 Miscellaneous.......................... 354 ------------ Total expenses........................ $ 329,649 ------------ Deduct -.............................. Preliminary allocation of expense to the investment adviser (Note 2).......... $ 10,882 Reduction of custodian fee (Note 1D).. 826 ------------ Total deductions................... $ 11,708 ------------ Net expenses....................... $ 317,941 ------------ Net investment income............ $ 3,397,103 ------------ REALIZED AND UNREALIZED LOSS ON INVESTMENTS: Net realized loss on investment transactions (identified cost basis)................ $ (98,697) Net change in unrealized depreciation of investments......................... (3,774,755) ------------ Net realized and unrealized loss on investments......................... $(3,873,452) ------------ Net decrease in net assets from operations.................... $ (476,349) ============= See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------- Current Income Portfolio (CIFP)
Six Months Ended Year Ended STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998 - ----------------------------------------------------------------------------------------------------------------------------- (Unaudited) INCREASE (DECREASE) IN NET ASSETS: From operations - Net investment income...................................................... $ 3,397,103 $ 6,757,613 Net realized loss on investments........................................... (98,697) (142,545) Change in unrealized appreciation (depreciation) of investments............ (3,774,755) 406,744 ------------ ------------ Net increase (decrease) in net assets from operations.................... $ (476,349) $ 7,021,812 ------------ ------------ Capital transactions - Contributions.............................................................. $ 10,206,894 $ 24,506,099 Withdrawals................................................................ (19,994,239) (15,586,545) ------------ ------------ Increase (decrease) in net assets resulting from capital transactions........ $ (9,787,345) 8,919,554 ------------ ------------ Net increase (decrease) in net assets........................................ $(10,263,694) $ 15,941,366 NET ASSETS: At beginning of period....................................................... 113,706,752 97,765,386 ------------ ------------ At end of period............................................................. $103,443,058 $113,706,752 ============= ============= See notes to financial statements
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------- Supplementary Data Year Ended December 31 - ------------------------------------------------------------------------------- Selected Blue Chip Equities Portfolio (SBCP) 1999(2) 1998 1997(3) - ------------------------------------------------------------------------------- Ratios (As of percentage of average daily net assets): Net expenses(1) 0.86%+ 0.77% 0.66%+ Net investment income 0.71%+ 0.80% 1.08%+ Portfolio Turnover 80% 78% 28% Net assets,end of period (000 omitted) $140,081 $221,657 $259,492 - ------------------------------------------------------------------------------- + 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 not have been affected for the period ended June 30, 1999. 2 For the six months ended June 30, 1999 (unaudited). 3 For the period from start of business, May 2, 1997 to December 31, 1997. Year Ended December 31 - ------------------------------------------------------------------------------- Junior Blue Chip Equities Portfolio (JBCP) 1999(2) 1998 1997(3) - ------------------------------------------------------------------------------- Ratios (As of percentage of average daily net assets)++: Net expenses(1) 1.02%+ 0.90% 0.48%+ Net investment income 0.20%+ 0.32% 0.99%+ Portfolio Turnover 10% 49% 36% Net assets, end of period (000 omitted) $18,019 $34,303 $33,489 - ------------------------------------------------------------------------------- ++ For the period presented, the operating expenses of JBCP reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows: 1999(2) 1998 1997(3) -------- ------- -------- Ratios (As of percentage of average daily net assets): Expenses 0.03%+ 0.93% 0.80%+ Net investment income 1.19%+ 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 1.00% for the six months ended June 30, 1999, 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. 2 For the six months ended June 30, 1999 (unaudited). 3 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 - ------------------------------------------------------------------------------- Supplementary Data Year Ended December 31 - ------------------------------------------------------------------------------- International Blue Chip Equities Portfolio (IBCP) 1999(1) 1998 1997(2) - ------------------------------------------------------------------------------- Ratios (As of percentage of average daily net assets): Net expenses 1.14%+ 1.01% 0.90%+ Net investment income 0.90%+ 0.77% 0.95%+ Portfolio Turnover 38% 66% 37% Net assets, end of period (000 omitted)$152,795 $212,231 $257,047 - ------------------------------------------------------------------------------- + Annualized. 1 For the six months ended June 30, 1999 (unaudited). 2 For the period from the start of business, May 2, 1997 to December 31, 1997. Year Ended December 31 - ------------------------------------------------------------------------------- U.S. Government Near Term Portfolio (NTBP) 1999(2) 1998 1997(3) - ------------------------------------------------------------------------------- Ratios (As a percentage of average daily net assets): Net expenses(1) 0.60%+ 0.57% 0.46%+ Net investment income 5.55%+ 5.68% 6.24%+ Portfolio Turnover 23% 10% 0% Net assets,end of period(000 omitted) $77,974 $92,200 $102,861 - ------------------------------------------------------------------------------- + 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 0.59% for the six month period ended June 30, 1999, 0.56% 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. 2 For the six months ended June 30, 1999 (unaudited). 3 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 - ------------------------------------------------------------------------------ Supplementary Data Year Ended December 31 - ------------------------------------------------------------------------------ U.S. Treasury Portfolio (USTBP) 1999(2) 1998 1997(3) - ------------------------------------------------------------------------------ Ratios (As a percentage of average daily net assets)++: Net expenses(1) 0.62%+ 0.57% 0.56%+ Net investment income 5.46%+ 5.45% 6.11%+ Portfolio Turnover 25% 7% 0% Net assets,end of period (000 omitted) $54,976 $67,330 $74,536 - ------------------------------------------------------------------------------- + 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 0.59% for the six month period ended June 30, 1999, 0.54% for the year ended December 31, 1998, and 0.41% for the period from the start of business May 2, 1997 to December 31, 1997. 2 For the six months ended June 30, 1999 (unaudited). 3 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 USTBP reflect an allocation of expenses to the investment adviser. Had such action not been taken, the ratios would have been as follows: 1998 ------- Ratios (As of percentage of average daily net assets): Expenses 0.58% Net Expenses 0.55% Net Investment Income 5.44% - ------------------------------------------------------------------------------- Year Ended December 31 - ------------------------------------------------------------------------------ Current Income Portfolio (CIFP) 1999(2) 1998 1997(3) - ------------------------------------------------------------------------------ Ratios (As a percentage of average daily net assets)++: Net expenses(1) 0.58%+ 0.57% 0.48%+ Net investment income 6.23%+ 6.33% 6.66%+ Portfolio Turnover 1% 1% 7% Net assets, end of period (000 omitted) $103,443 $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 not have been affected for the six month period ended June 30, 1999. 2 For the six months ended June 30, 1999 (unaudited). 3 For the period from the start of business, May 2, 1997 to December 31, 1997. ++ For the six months ended June 30, 1999, the operating expenses of the fund reflect an allocation of expenses to the investment adviser. Had such action not been taken, the ratios would have been as follows: 1999(2) Ratios (As of percentage of average daily net assets): Expenses 0.60%+ Net Expenses 0.57%+ Net Investment Income 6.21%+ See notes to financial statements WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST - ------------------------------------------------------------------------------- Notes to Financial Statements (Unaudited) (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), 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. I. Interim Financial Information - The interim financial statements relating to June 30, 1999 and for the six month period then ended have not been audited by independent certified public accountants, but in the opinion of the Trust's management, reflect all adjustments, consisting only of normally recurring adjustments, necessary for the fair presentation of the financial statements. (2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES The Trust has engaged 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 six months ended June 30, 1999, the effective annual rate was 0.61% 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 preliminary reduction of its investment adviser fee by $20,287 for the Junior Portfolio. Additionally, $10,882 of expenses were allocated to the investment adviser on a preliminary basis for the Current Income 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 six months ended June 30, 1999, the effective annual rate was 0.14% for the Selected Portfolio, 0.20% for the Junior Portfolio, 0.13% 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 six months ended June 30, 1999 were as follows:
Selected Junior International U.S. Government U.S. Current Blue Chip Blue Chip Blue Chip Near Term Treasury Income (Unaudited) Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio - --------------------------------------------------------------------------------------------------------------------------------- Purchases - Non-U.S. Gov't Obligations $ 49,911,494 $ 2,565,309 $ 66,199,130 $ -- $ -- $ -- ============ ============ ============ ============ ============ ============ U.S. Gov't Obligations $ -- $ -- $ -- $ 9,409,755 $ 5,637,836 $ 10,050,330 ============ ============ ============ ============ ============ ============ Sales - Non-U.S. Gov't Obligations $ 134,687,360 $ 17,186,255 $ 120,075,091 $ -- $ -- $ -- ============ ============ ============ ============ ============ ============ U.S. Gov't. Obligations $ -- $ -- $ -- $ 18,938,042 $ 15,070,942 $ 561,429 ============ ============ ============ ============ ============ ============
(4) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) of the investment securities owned at June 30, 1999, 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 (Unaudited) Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio - ------------------------------------------------------------------------------------------------------------------------------- Aggregate cost $103,145,048 $ 17,342,866 $133,399,728 $ 76,657,493 $ 51,177,651 $107,067,001 ============ ============ ============ ============ ============ ============ Gross unrealized appreciation $ 40,239,001 $ 1,990,848 $ 26,292,550 $ 525,487 $ 1,301,340 $ 710,863 Gross unrealized depreciation (1,731,115) (1,435,736) (9,470,340) (687,344) (422,835) (2,343,053) ----------- ----------- ----------- ----------- ----------- ----------- Net unrealized appreciation (depreciation) $ 38,507,886 $ 555,112 $ 16,822,210 $ (161,857) $ 878,505 $ (1,632,190) ============ ============ ============ ============ ============ ============ - ---------------------------------------------------------------------------------------------------------------------------------
(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 June 30, 1999, the International Portfolio had the following forward foreign currency exchange contracts open:
SALES Settlement Contracts to Deliver In Exchange for Contracts Net Unrealized Date Currency (in Local Currency) (U.S. Dollars) at Value Appreciation (Depreciation) - --------------------------------------------------------------------------------------------------------------------------------- 7/01/99 Great Britain Pound 594,611 $ 943,648 $ 936,697 $ 6,951 7/02/99 Great Britain Pound 599,978 $ 953,365 $ 945,157 $ 8,208 ------------- ------------- ------------ $ 1,897,013 $ 1,881,854 $ 15,159 ============= ============= ===========
At June 30, 1999, the International Portfolio had sufficient cash and/or securities to cover any commitments under these contracts. (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 portfolios 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 June 30, 1999. PORTFOLIOS OF INVESTMENTS Wright Major Blue Chip Equities Fund (WMBC) - ------------------------------------------------------------------------------- Portfolio of Investments - June 30, 1999 (Unaudited) Shares Value Equity Interests -- 97.7% APPAREL -- 1.6% VF Corp............................. 41,500 $ 1,774,125 ----------- AUTOMOTIVE -- 4.1% Dana Corporation.................... 50,900 $ 2,344,581 Johnson Controls.................... 30,900 2,141,756 ----------- $ 4,486,337 ----------- BEVERAGES -- 2.3% Pepsico............................. 64,700 $ 2,503,081 ----------- CHEMICALS -- 3.7% DuPont (E.I.) de Nemours & Co....... 32,500 $ 2,220,156 PPG Industries...................... 28,800 1,701,000 Rohm & Haas Co...................... 4,056 173,901 ----------- $ 4,095,057 ----------- DIVERSIFIED -- 6.5% General Electric Co................. 22,600 $ 2,553,800 Tyco International Ltd.............. 25,100 2,378,225 United Technologies................. 30,400 2,179,300 ----------- $ 7,111,325 ----------- DRUGS, COSMETICS & HEALTHCARE -- 5.4% Johnson & Johnson................... 23,200 $ 2,273,600 Merck & Co., Inc.................... 30,300 2,242,200 Pfizer Inc.......................... 12,600 1,382,850 ----------- $ 5,898,650 ----------- ELECTRONICS -- 15.8% Computer Associates Int'l. Inc...... 53,100 $ 2,920,500 EMC Corp./Mass*..................... 36,000 1,980,000 Gateway 2000........................ 28,400 1,675,600 Intel Corp.......................... 31,000 1,844,500 International Business Machines..... 21,400 2,765,950 Microsoft Corp...................... 13,500 1,217,531 Oracle Corp......................... 64,250 2,385,281 Sun Microsystems, Inc*.............. 36,800 2,534,600 ----------- $ 17,323,962 ----------- FINANCIAL -- 19.9% American Express Co................. 15,000 $ 1,951,875 American International Group........ 14,925 1,747,158 BB&T Corporation.................... 61,600 2,259,950 Chase Manhattan Corp................ 27,500 2,382,188 Citigroup........................... 22,950 1,090,125 Fannie Mae.......................... 36,200 2,475,175 Jefferson-Pilot Corp................ 36,200 2,395,988 KeyCorp. (New)...................... 75,800 2,435,062 Mercantile Bancorporation........... 30,700 1,753,738 MBIA, Inc........................... 30,800 1,994,300 Southtrust Corp..................... 38,000 1,458,250 ----------- $ 21,943,809 ----------- MACHINERY & EQUIPMENT -- 4.0% Ingersoll Rand Co................... 38,150 $ 2,465,444 Pitney-Bowes Inc.................... 29,900 1,921,075 ----------- $ 4,386,519 ----------- METAL PRODUCERS -- 1.5% Alcoa Inc........................... 18,400 $ 1,138,500 Nucor Corp.......................... 10,600 502,838 ----------- $ 1,641,338 ----------- METAL PRODUCTS MANUFACTURERS -- 2.7% Illinois Tool Works Inc............. 36,700 $ 3,009,400 ----------- OIL, GAS, COAL & RELATED SERVICES -- 7.4% Chevron Corp........................ 23,900 $ 2,274,981 Exxon Corp.......................... 24,300 1,874,138 Halliburton Company................. 54,900 2,484,225 Mobil Corp.......................... 15,700 1,554,300 ----------- $ 8,187,644 ----------- PRINTING & PUBLISHING -- 2.3% Gannett Co. Inc..................... 36,000 $ 2,569,500 ----------- RECREATION -- 1.8% Hasbro Inc.......................... 69,300 $ 1,936,079 ----------- RETAILERS -- 6.5% Costco Companies Inc*............... 20,800 $ 1,665,300 Lowes Co's., Inc.................... 28,600 1,621,263 TJX Cos. Inc. (New)................. 60,700 2,022,069 Wal-Mart Stores..................... 37,600 1,814,200 ----------- $ 7,122,832 ----------- UTILITIES -- 8.2% Alltel Corporation.................. 30,700 $ 2,195,050 Bellsouth Corporation............... 51,900 2,432,813 Duke Energy Corp.................... 35,000 1,903,125 SBC Communications, Inc............. 42,700 2,476,600 ----------- $ 9,007,588 ----------- MISCELLANEOUS -- 4.0% Avery-Dennison Corp................. 36,000 $ 2,173,500 Electronic Data Systems Corp........ 39,600 2,239,875 ----------- $ 4,413,375 ----------- TOTAL EQUITY INTERESTS -- 97.7% (identified cost, $86,347,751) $107,410,621 ----------- Reserve Funds -- 2.2% Face Amount American Express Corp., 5.501%, 07/01/99 (at amortized cost).............$2,440,000 $ 2,440,000 ----------- TOTAL INVESTMENTS -- 99.9% (identified cost, $88,787,751) $109,850,621 OTHER ASSETS, LESS LIABILITIES -- 0.1% 68,211 ----------- NET ASSETS -- 100% $109,918,832 ============ * Non-income-producing security. See notes to financial statements Wright Total Return Bond Fund (WTRB) - ------------------------------------------------------------------------------- Portfolio of Investments - June 30, 1999 (Unaudited)
Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity - --------------------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS FINANCIAL $ 1,100,000 Ameritech Cap 6.150% 1/15/08 $ 96.197 $ 1,058,167 6.39% 6.64% 2,000,000 Associates Corp. 6.450% 10/15/01 100.477 2,009,540 6.42% 6.21% 1,000,000 First Data Corp. 5.800% 12/15/08 91.726 917,260 6.32% 6.83% 3,200,000 Ford Motor Co. 6.500% 8/01/18 91.048 2,913,536 7.14% 7.33% 1,240,000 Ford Motor Credit 5.800% 1/12/09 91.390 1,133,236 6.35% 7.03% 2,825,000 General Elec. Cap. Corp. 6.500% 11/01/06 99.803 2,819,435 6.51% 6.70% 2,000,000 GMAC 6.375% 10/15/04 97.898 1,957,960 6.51% 6.91% 1,455,000 IBM Credit Corp. 5.375% 2/01/09 90.993 1,323,948 5.91% 6.61% 1,000,000 IBM Corp. 5.625% 4/12/04 96.100 961,000 5.85% 6.28% 2,675,000 IBM Credit Corp. 6.200% 8/28/00 100.486 2,688,001 6.17% 5.53% 1,000,000 J.P. Morgan 6.875% 1/15/07 100.032 1,000,320 6.87% 7.02% INDUSTRIALS $ 1,795,000 Hasbro Inc. 5.600% 11/01/05 $ 93.190 $ 1,672,761 6.01% 6.84% 3,200,000 Kimberly Clark Corp. 6.250% 7/15/18 92.334 2,954,685 6.77% 6.95% 1,280,000 Kimberly Clark Corp. 6.375% 1/01/28 90.244 1,155,123 7.06% 6.88% 2,400,000 McDonald's Corp. 6.500% 8/01/07 98.990 2,375,760 6.57% 6.50% 3,500,000 Warner-Lambert Co. 5.750% 1/15/03 98.241 3,438,435 5.85% 6.30% UTILITIES $ 3,140,000 AT&T Corp. 6.500% 3/15/29 $ 90.244 $ 2,833,662 7.20% 7.29% 1,000,000 Duke Energy Corp. 6.000% 12/01/28 84.514 845,140 7.10% 7.29% 1,680,000 Lucent Tech. 5.500% 11/15/08 92.091 1,547,129 5.97% 6.63% 1,100,000 Lucent Technologies Inc. 6.450% 3/15/29 90.461 995,071 7.13% 7.09% 1,500,000 New York Telecom. 6.000% 4/15/08 94.962 1,424,430 6.32% 6.78% 2,000,000 SBC Communications Inc. 6.625% 11/01/09 98.449 1,968,980 6.73% 6.78% 955,000 Tennessee Valley Authority 6.000% 3/15/13 94.562 903,067 6.35% 6.61% ---------- Total Corporate Bonds (identified cost, $43,132,058) - 39.3% $ 40,896,646 GOVERNMENT INTERESTS U.S. GOVERNMENT AGENCIES $ 1,280,000 Federal Home Loan Mortgage 5.800% 9/02/08 $ 95.281 $ 1,219,597 6.09% 6.42% 1,250,000 Federal Home Loan Mortgage 5.540% 10/27/08 92.203 1,152,538 6.01% 6.82% 1,500,000 Federal Home Loan Mortgage 5.125% 2/26/02 98.437 1,476,555 5.21% 5.92% 615,000 Federal Home Loan Mortgage 5.750% 4/15/08 95.266 585,886 6.04% 6.40% 500,000 Federal Home Loan Mortgage 6.125% 4/15/08 95.910 479,550 6.39% 7.00% 1,000,000 Federal Home Loan Mortgage 4.750% 12/14/01 97.516 975,160 4.87% 6.12% 1,000,000 Federal National Mtg. Assn. 6.170% 1/15/08 95.984 959,840 6.43% 6.66% 1,000,000 Federal National Mtg. Assn. 6.000% 5/15/08 96.984 969,840 6.19% 6.40% 1,500,000 Federal National Mtg. Assn. 6.560% 11/26/07 98.109 1,471,635 6.69% 6.76% 1,315,000 Federal National Mtg. Assn. 5.750% 2/15/08 95.609 1,257,258 6.01% 6.37% 2,000,000 Federal National Mtg. Assn. 6.400% 11/9/04 99.094 1,981,880 6.46% 6.37% 1,000,000 Federal National Mtg. Assn. 5.750% 6/15/05 97.562 975,620 5.89% 6.11% 600,000 Federal National Mtg. Assn. 6.250% 5/15/29 95.016 570,096 6.58% 6.65% U.S. Government Agencies - cont. $ 1,250,000 Federal National Mtg. Assn. 5.625% 3/15/01 $ 99.828 $ 1,247,850 5.63% 5.72% 1,400,000 Federal National Mtg. Assn. 4.750% 11/14/03 94.750 1,326,500 5.01% 6.26% 440,000 Federal National Mtg. Assn. 5.740% 1/21/09 93.281 410,436 6.15% 6.96% 1,925,000 Federal National Mtg. Assn. 5.350% 10/27/03 96.359 1,854,911 5.55% 6.38% 497,357 GNMA Pool # 488924 6.500% 11/15/28 96.156 478,239 6.76% N/C 1,029,906 GNMA Pool # 422506 6.500% 3/15/26 96.406 992,892 6.74% N/C 540,877 GNMA Pool # 436214 6.500% 2/15/13 99.000 535,469 6.57% N/C 1,436,167 GNMA Pool # 460726 6.500% 12/15/27 96.156 1,380,962 6.76% N/C 939,034 GNMA Pool # 478072 6.500% 5/15/28 96.156 902,938 6.76% N/C 906,327 GNMA Pool # 427199 7.000% 12/15/27 98.656 894,146 7.10% N/C 3,388,411 GNMA Pool # 374892 7.000% 2/15/24 98.969 3,353,477 7.07% N/C 690,010 GNMA Pool # 002671 6.000% 11/20/28 93.094 642,359 6.45% N/C 644,645 GNMA Pool # 376400 6.500% 2/15/24 96.718 623,489 6.72% N/C 1,116,351 GNMA Pool # 379982 7.000% 2/15/24 98.969 1,104,842 7.07% N/C 480,878 GNMA Pool # 442996 6.000% 6/15/13 96.906 466,000 6.19% N/C 1,692,447 GNMA Pool # 458672 6.500% 1/15/28 96.156 1,627,390 6.76% N/C 958,719 GNMA Pool # 463839 6.000% 5/15/13 96.906 929,056 6.19% N/C U.S. TREASURIES $ 1,000,000 U.S. Treasury Bond 5.500% 8/15/28 $ 91.562 $ 915,620 6.01% 6.13% 500,000 U.S. Treasury Bond 6.250% 8/15/23 100.469 502,345 6.22% 6.21% 1,750,000 U.S. Treasury Bond 8.250% 5/15/05 102.078 1,786,365 8.08% 7.83% 2,900,000 U.S. Treasury Bond 6.000% 2/15/26 97.578 2,829,762 6.15% 6.19% 7,625,000 U.S. Treasury Bond 7.250% 5/15/16 109.984 8,386,280 6.59% 6.29% 1,400,000 U.S. Treasury Note 5.875% 11/15/99 100.297 1,404,158 5.86% 5.09% 300,000 U.S. Treasury Note 5.250% 5/31/01 99.531 298,593 5.27% 5.53% 2,500,000 U.S. Treasury Note 5.375% 1/31/00 100.187 2,504,675 5.36% 5.04% 1,900,000 U.S. Treasury Note 5.875% 6/30/00 100.547 1,910,393 5.84% 5.26% 2,500,000 U.S. Treasury Note 5.750% 10/31/00 100.437 2,510,925 5.84% 5.37% 3,000,000 U.S. Treasury Note 7.750% 2/15/01 103.484 3,104,520 7.49% 5.45% 1,700,000 U.S. Treasury Note 7.500% 2/15/05 107.656 1,830,152 6.97% 5.93% 1,050,000 U.S. Treasury Note 6.500% 8/15/05 103.078 1,082,319 6.31% 5.94% ---------- Total Government Interests (identified cost, $62,276,088) -59.5% $61,912,518 ----------- Total Investments (identified cost, $105,408,146) - 98.8% $102,809,164 Other Assets, Less Liabilities - 1.2% 1,310,735 ---------- Net Assets -- 100.0% $104,119,899 ============ Average Maturity - 9.5 Years
See notes to financial statements Selected Blue Chip Equities Portfolio (SBCP) - ------------------------------------------------------------------------------- Portfolio of Investments - June 30, 1999 (Unaudited) Shares Value Equity Interests -- 99.2% APPAREL -- 1.9% Liz Claiborne....................... 20,700 $ 1,084,050 VF Corp............................. 38,220 1,633,905 ----------- $ 2,717,955 ----------- AUTOMOTIVE -- 5.0% Dana Corp........................... 71,800 $ 3,307,287 Johnson Controls.................... 52,200 3,618,113 ----------- $ 6,925,400 ----------- CHEMICALS -- 2.3% Cooper Tire & Rubber Co............. 63,000 $ 1,488,375 PPG Industries Inc.................. 20,000 1,181,250 Rohm & Haas Co...................... 12,870 551,801 ----------- $ 3,221,426 ----------- CONSTRUCTION -- 2.4% Jacobs Engineering Group*........... 44,500 $ 1,691,000 Southdown, Inc...................... 26,800 1,721,900 ----------- $ 3,412,900 ----------- DIVERSIFIED -- 6.0% Carlisle Corp....................... 122,950 $ 3,865,241 Lancaster Colony Corp............... 131,300 4,529,850 ----------- $ 8,395,091 ----------- DRUGS, COSMETICS & HEALTHCARE -- 7.6% Bard (C.R.)......................... 51,600 $ 2,467,125 Biogen, Inc......................... 51,200 3,292,800 Johnson & Johnson................... 27,600 2,704,800 Watson Pharmaceuticals.............. 63,000 2,208,938 ----------- $ 10,673,663 ----------- ELECTRONICS -- 12.2% Adobe Systems Inc................... 59,200 $ 4,863,653 American Power Conversion........... 32,800 660,100 Dallas Semiconductor Corp........... 81,200 4,100,600 Gateway 2000 Inc.................... 27,200 1,604,800 Keane Inc........................... 30,000 678,750 Linear Technology................... 10,000 672,500 Solectron Corp...................... 13,600 906,950 Sun Microsystems Inc*............... 39,000 2,686,125 Synopsys Inc........................ 16,000 883,000 ----------- $ 17,056,478 ----------- FINANCIAL -- 19.1% AFLAC Corp.......................... 21,500 $ 1,029,310 AMBAC Inc........................... 67,700 3,867,363 BB&T Corporation.................... 61,840 2,268,755 Commerce Bancshares, Inc............ 66,091 2,660,163 Compass Bancshares.................. 82,775 2,255,619 Edwards (A.G.), Inc................. 106,930 3,448,493 Federal National Mort. Assoc........ 37,500 2,564,063 First Security CP................... 71,450 1,947,013 Marshall & Ilsley Corp.............. 8,900 572,938 MBIA Inc............................ 55,000 3,561,250 Southtrust Corporation.............. 67,150 2,576,881 ----------- $ 26,751,848 ----------- FOOD -- 5.1% Hormel Foods Corp................... 99,700 $ 4,012,925 Universal Foods Corp................ 147,800 3,122,275 ----------- $ 7,135,200 ----------- MACHINERY & EQUIPMENT -- 1.7% Ingersoll Rand Co................... 38,200 $ 2,468,675 ----------- METAL PRODUCERS -- 0.6% Carpenter Technology................ 29,800 $ 851,163 ----------- METAL PRODUCTS MANUFACTURERS -- 2.6% Trinity Industries.................. 108,400 $ 3,631,400 ----------- OIL, GAS & COAL -- 3.0% Halliburton Company................. 46,800 $ 2,117,700 Nabors Inds., Inc................... 85,900 2,099,181 ----------- $ 4,216,881 ----------- RECREATION -- 4.3% Brinker International Inc.*......... 145,000 $ 3,942,187 Brunswick Corp...................... 47,300 1,318,488 Harley-Davidson..................... 14,300 777,563 ----------- $ 6,038,238 ----------- RETAILERS -- 5.8% Best Buy Company Inc................ 16,900 $ 1,140,750 Claire's Stores Inc................. 55,000 1,409,374 Office Depot........................ 43,000 948,688 Ross Stores Inc..................... 74,800 3,768,050 TJX Cos. Inc. (New)................. 24,100 802,831 ----------- $ 8,069,693 ----------- TRANSPORTATION -- 2.5% Comair Holdings, Inc................ 84,375 $ 1,756,054 U.S. Freightways Corp............... 36,300 1,681,144 ----------- $ 3,437,198 ----------- UTILITIES - 8.0% Aliant Comm Inc..................... 55,700 $ 2,572,644 Duke Energy Corp.................... 26,930 1,464,319 NiSource Inc........................ 66,900 1,726,856 SBC Communications Inc.............. 30,800 1,786,400 TECO Energy, Inc.................... 165,600 3,767,400 ----------- $ 11,317,619 ----------- MISCELLANEOUS -- 9.1% Avery-Dennison Corp................. 40,000 $ 2,415,000 Cintas Corp......................... 10,900 732,343 Ethan Allen Interiors............... 109,050 4,116,638 HON Industries Inc.................. 90,000 2,626,875 Leggett & Platt Inc................. 100,000 2,781,250 ----------- $ 12,672,106 ----------- TOTAL EQUITY INTERESTS - 99.2% (identified cost, $100,485,048) $138,992,934 ----------- Reserve Funds -- 1.9% Face Amount American Express Corp., 5.50%, 7/01/99 (at amortized cost).............$2,660,000 $ 2,660,000 ----------- TOTAL INVESTMENTS -- 101.1% (identified cost, $103,145,048) $141,652,934 OTHER ASSETS, LESS LIABILITIES -- (1.1%) (1,572,046) ----------- NET ASSETS -- 100% $140,080,888 ============ * Non-income-producing security. See notes to financial statements Junior Blue Chip Equities Portfolio (JBCP) - ------------------------------------------------------------------------------- Portfolio of Investments - June 30, 1999 (Unaudited) Shares Value Equity Interests -- 99.3% APPAREL -- 2.2% Quiksilver, Inc*.................... 15,100 $ 393,544 ----------- AUTOMOTIVE -- 6.9% Simpson Industries.................. 58,900 $ 603,725 Thor Industries, Inc................ 22,400 635,600 ----------- $ 1,239,325 ----------- CHEMICALS -- 3.4% AMCOL Int'l. Corp................... 42,700 $ 613,813 ----------- CONSTRUCTION -- 7.5% Patrick Industries.................. 45,500 710,938 Universal Forest Pr................. 29,900 642,850 ----------- $ 1,353,788 ----------- DRUGS, COSMETICS & HEALTHCARE -- 7.3% Arrow International Inc............. 12,000 $ 310,500 Empi, Inc*.......................... 27,900 680,063 Respironics, Inc*................... 21,400 323,675 ----------- $ 1,314,238 ----------- ELECTRONICS -- 8.7% Fair Issac & Co. Inc................ 16,900 $ 592,556 Harman International Inds........... 10,000 440,000 Technitrol, Inc..................... 16,800 541,800 ----------- $ 1,574,356 ----------- FINANCIAL -- 8.7% Centura Banks Inc................... 9,800 $ 552,475 One Valley Bancorp.................. 11,200 420,000 Raymond James Financial Corp........ 24,600 588,863 ----------- $ 1,561,338 ----------- MACHINERY & EQUIPMENT -- 6.7% CLARCOR Inc......................... 34,100 $ 654,294 JLG Industries Inc.................. 27,000 550,125 ----------- $ 1,204,419 ----------- METAL PRODUCERS -- 3.6% Imco Recycling Inc.................. 38,200 $ 654,175 ----------- METAL PRODUCTS MANUFACTURERS -- 3.2% Regal Beloit Corp................... 24,200 $ 571,725 ----------- PRINTING & PUBLISHING -- 3.1% Standard Register................... 18,300 $ 562,725 ----------- RECREATION -- 9.5% Buffetts Inc.*...................... 59,700 $ 686,550 Ryan's Family Steak Houses.......... 30,000 348,750 Sonic Corp.*........................ 20,950 683,494 ----------- $ 1,718,794 ----------- RETAILERS -- 3.1% The Buckle Inc...................... 19,700 $ 566,375 ----------- MISCELLANEOUS -- 25.4% Action Perfomance Cos. Inc.......... 5,600 $ 184,800 Caci International, Inc............. 32,800 738,000 Gallagher (Arthur J.)............... 13,600 673,200 Lawson Prods. Inc................... 22,300 561,681 Myers Industries.................... 27,950 559,000 TBC Corp.*.......................... 82,000 579,125 Tetra Tech Inc.*.................... 30,343 500,660 World Fuel Services Corp............ 52,400 772,897 ----------- $ 4,569,363 ----------- TOTAL INVESTMENTS -- 99.3% (identified cost, $17,342,866) $ 17,897,978 OTHER ASSETS, LESS LIABILITIES -- 0.7% 121,179 ----------- NET ASSETS -- 100.0% $ 18,019,157 ============ * Non-income-producing security. See notes to financial statements International Blue Chip Equities Portfolio (IBCP) - ------------------------------------------------------------------------------ Portfolio of Investments - June 30, 1999 (Unaudited) Shares Value Equity Interests -- 97.6% AUSTRALIA -- 1.9% Lend Lease Corp. Ltd................ 117,748 $ 1,615,923 National Australia Bank Ltd......... 79,000 1,306,660 ----------- $ 2,922,583 ----------- AUSTRIA -- 1.8% Bank Austria AG..................... 16,200 $ 852,225 VA Technologie AG................... 11,500 1,042,099 Wienerberger Baustoff Ind........... 30,900 800,340 ----------- $ 2,694,664 ----------- BELGIUM -- 0.6% Delhaize LE PS...................... 10,700 $ 911,108 ----------- BRAZIL -- 1.2% Embratel Partipacoes................ 21,400 $ 296,925 Telecelular Sul Particip............ 2,140 46,411 Telecentro Sul Participa............ 4,280 237,540 Telenorte Leste Participa........... 21,400 397,238 Telesp Celular Participa............ 8,560 228,980 Telesp Participacoes SA ADR......... 21,400 489,525 Telesudeste Celular Part............ 4,280 124,120 ----------- $ 1,820,739 ----------- CANADA -- 5.7% ATI Technologies.................... 111,200 $ 1,791,910 Bombardier Inc. Class B............. 89,400 1,359,076 Fairfax Financial Hlds.............. 4,900 1,307,728 Magna Int'l. Inc. Cl. A............. 16,615 935,685 Newbridge Network Corp.............. 32,600 937,250 Power Financial Corp................ 66,600 1,259,959 Teleglobe Inc....................... 38,200 1,124,024 ----------- $ 8,715,632 ----------- DENMARK -- 0.6% Tele Danmark........................ 20,000 $ 981,493 ----------- FINLAND -- 1.9% Metsa Serla B Shares................ 140,200 $ 1,191,638 Nokia Oy B Shares................... 19,700 1,727,247 ----------- $ 2,918,885 ----------- FRANCE -- 14.5% Alcatel............................. 13,500 $ 1,900,797 Altran Technologies SA.............. 5,000 1,320,320 Axa Company FRF60................... 14,900 1,818,194 Essilor International............... 5,700 1,782,092 L'Air Liquide SA.................... 6,778 1,066,205 Michelin B. French Reg. Shares...... 43,700 1,788,187 Pinault-Printemps Redoute SA........ 6,300 1,081,342 Promodes............................ 2,700 1,772,684 Sagem SA............................ 2,570 1,717,819 Stmicroelectronics NV............... 25,000 1,665,872 Technip............................. 11,130 1,249,089 TV Francaise........................ 7,500 1,748,392 Valeo............................... 21,800 1,798,936 Vivendi............................. 18,000 1,458,438 ----------- $ 22,168,367 ----------- GERMANY -- 8.7% Allianz AG Holding Ger Reg.......... 3,600 $ 1,003,546 BASF AG............................. 34,400 1,520,472 Bayer AG............................ 23,600 983,473 Bayerische Motoren Werke AG......... 2,239 1,540,456 DaimlerChrysler..................... 18,000 1,599,750 Heidelberger Zement AG.............. 20,600 1,699,912 Linde AG German Ord................. 2,000 1,198,603 Mannesmann AG....................... 5,300 796,535 SAP AG Vorzug....................... 2,400 970,683 Veba AG............................. 33,700 1,981,408 ----------- $ 13,294,838 ----------- GREECE -- 1.5% Heracles General Cement Co.......... 14,500 $ 388,389 Intracom SA......................... 15,700 1,012,067 National Bank of Greece............. 14,000 915,817 ----------- $ 2,316,273 ----------- HONG KONG -- 1.9% HSBC Holdings PLC................... 26,467 $ 965,339 Henderson Land Development.......... 133,000 764,496 Johnson Electric Holdings Ltd....... 269,000 1,109,407 ----------- $ 2,839,242 ----------- IRELAND -- 1.1% CRH PLC............................. 43,781 $ 774,513 Greencore PLC....................... 55,000 177,615 Waterford Wedgewood - Uni........... 780,000 798,677 ----------- $ 1,750,805 ----------- ITALY -- 3.5% Alleanza Assicurazioni SPA.......... 178,000 $ 2,047,218 Assicurazione Generali Itl.......... 18,500 641,180 Benetton Group...................... 585,000 1,152,547 Telecom Italia Mobile............... 243,000 1,451,290 ----------- $ 5,292,235 ----------- JAPAN -- 12.1% Autobacs Seven...................... 26,000 $ 1,262,636 Bellsystem24 Inc.................... 5,000 2,042,038 Bridgestone Corporation............. 39,000 1,178,890 Canon Inc........................... 79,000 2,270,565 Honda Motor Co., Ltd................ 45,000 1,906,591 Hoya Corp........................... 24,000 1,353,816 Matsushita Communication Ind........ 15,000 1,071,606 Murata Mfg. Co. Ltd................. 13,000 841,758 Ono Pharmaceutical.................. 20,000 682,194 Takeda Chem Industries Ltd.......... 22,000 1,019,326 Takefuji Corp....................... 17,000 1,756,442 Toyota Motor Co..................... 34,000 1,075,486 York-Benimaru Co. Ltd............... 54,000 2,038,156 ----------- $ 18,499,504 ----------- MEXICO -- 2.9% Cemex S.A........................... 133,911 $ 660,135 Cifra S.A........................... 334,740 648,729 Grupo Carso S.A. de C.V............. 141,000 651,825 Grupo Industrial Saltillo A......... 150,000 528,404 Grupo Industrial Maseca-B........... 907,000 537,311 Organizacion Soriana SA-B........... 162,000 759,188 Telefonos de Mexico................. 8,100 654,580 ----------- $ 4,440,172 ----------- NETHERLANDS -- 9.5% Abn Amro Holdings................... 90,315 $ 1,956,358 Aegon NV............................ 16,763 1,216,424 Cap Gemini.......................... 31,100 2,123,673 CSM N.V. Cert....................... 28,472 1,422,922 Fortis Amev NV...................... 43,843 1,354,460 Getronics N.V....................... 32,132 1,236,277 Hunter Douglas NV................... 1,000 34,349 ING Groep N.V....................... 35,195 1,905,941 Internatio-Muller NV................ 37,916 835,006 Koninklijke Philips Electronics..... 8,000 789,304 TNT Post Group*..................... 346 8,262 Verenigde Nederlandse............... 13,000 519,618 Volker Wessels Stevin............... 55,548 1,065,738 ----------- $ 14,468,333 ----------- PORTUGAL-- 0.5% Portugal Telecom S.A. ADR........... 17,000 $ 700,188 ----------- SINGAPORE -- 1.9% City Developments................... 150,000 $ 960,353 Overseas Chinese Bkng Corp.......... 128,000 1,067,606 United Overseas Bank-Foreign........ 128,000 894,684 ----------- $ 2,922,643 ----------- SOUTH AFRICA -- 2.0% Sasol Beperk Limited................ 225,000 $ 1,604,482 Tiger Oats Limited.................. 82,350 750,248 Wooltru............................. 388,000 661,984 ----------- $ 3,016,714 ----------- SPAIN -- 5.9% Banco Bilbao Vizcaya SA............. 73,950 $ 1,068,675 Banco Santander Central Hisp........ 110,000 1,145,997 Bankinter - Banco Interc Esp........ 23,800 969,713 Endesa S.A.......................... 82,400 1,757,709 Gas Natural SDG S.A................. 7,100 516,317 Repsol S.A.......................... 110,220 2,251,100 Telefonica.......................... 28,611 1,378,517 ----------- $ 9,088,028 ----------- SWEDEN -- 2.9% Ericsson AB B Free.................. 71,800 $ 2,303,992 Hoganas AB-B........................ 57,100 1,159,886 Svedala Industri AB-Free............ 53,700 967,510 ----------- $ 4,431,388 ----------- SWITZERLAND -- 1.7% Alusuisse-Lonza Group Ltd........... 1,550 $ 1,807,801 Sch. Rueckversicherungs-Ges......... 430 819,259 ----------- $ 2,627,060 ----------- UNITED KINGDOM -- 13.3% Airtours............................ 222,100 $ 1,763,366 Astrazeneca PLC..................... 20,600 796,027 Bodycote International PLC.......... 181,750 1,122,338 Bowthorpe Holdings PLC.............. 118,900 1,043,279 British Petroleum Co. PLC........... 42,500 $ 760,555 British Telecommunications PLC...... 90,000 1,505,672 Cable & Wireless PLC ADR........... 39,100 1,549,338 Cobham.............................. 122,000 1,941,085 Computer Management Group........... 50,800 1,338,021 Invensys PLC........................ 361,714 1,709,424 Johnson Matthey Public Ltd.......... 104,400 1,019,660 Kingfisher PLC...................... 66,000 769,699 Wm. Morrison Supermarkets PLC....... 364,200 826,162 Smithkline Beecham PLC.............. 50,841 660,740 Tesco PLC........................... 254,000 658,208 Vodafone Airtouch PLC............... 88,187 1,733,734 Wolseley PLC........................ 156,540 1,178,736 ----------- $ 20,376,044 ----------- TOTAL EQUITY INTERESTS - 97.6% (identified cost, $132,374,728) $149,196,938 ----------- Reserve Funds -- 0.7% Face Amount American Express Corp., 5.501%, 7/01/99 (at amortized cost).............$1,025,000 $ 1,025,000 ----------- TOTAL INVESTMENTS -- 98.3% (identified cost, $133,399,728) $150,221,938 OTHER ASSETS, LESS LIABILITIES -- 1.7% 2,572,702 ----------- NET ASSETS -- 100% $152,794,640 ============ * Non-income-producing security. ADR: American Depository Receipts See notes to financial statements Wright U.S. Treasury Money Market Fund (WTMM) - ------------------------------------------------------------------------------- Portfolio of Investments - June 30, 1999 (Unaudited) Face Interest Maturity Amount Issuer Rate Date Value - ------------------------------------------------------------------------------- $2,000,000 U.S. Treasury Bills 4.275% 07/01/99 $ 2,000,000 2,050,000 U.S. Treasury Bills 4.240% 07/22/99 2,044,929 2,000,000 U.S. Treasury Bills 4.400% 07/22/99 1,994,867 300,000 U.S. Treasury Bills 4.180% 07/22/99 299,268 2,500,000 U.S. Treasury Bills 4.310% 08/19/99 2,485,334 200,000 U.S. Treasury Bills 4.370% 08/19/99 198,811 900,000 U.S. Treasury Bills 4.430% 08/19/99 894,573 700,000 U.S. Treasury Bills 4.350% 08/19/99 695,855 2,600,000 U.S. Treasury Bills 4.330% 09/16/99 2,575,920 350,000 U.S. Treasury Bills 4.470% 09/16/99 346,654 1,300,000 U.S. Treasury Bills 4.460% 09/16/99 1,287,599 500,000 U.S. Treasury Bills 4.500% 09/16/99 495,188 2,000,000 U.S. Treasury Bills 4.590% 10/14/99 1,973,225 2,500,000 U.S. Treasury Bills 4.420% 10/14/99 2,467,770 4,100,000 U.S. Treasury Bills 4.615% 11/12/99 4,029,570 1,300,000 U.S. Treasury Bills 4.200% 07/08/99 1,298,938 3,000,000 U.S. Treasury Bills 4.300% 07/08/99 2,997,492 4,200,000 U.S. Treasury Bills 4.345% 07/15/99 4,192,902 200,000 U.S. Treasury Bills 4.420% 07/15/99 199,656 2,000,000 U.S. Treasury Bills 4.460% 08/05/99 1,991,328 4,000,000 U.S. Treasury Bills 4.380% 08/05/99 3,982,967 150,000 U.S. Treasury Bills 4.360% 08/12/99 149,237 600,000 U.S. Treasury Bills 4.485% 08/12/99 596,861 3,300,000 U.S. Treasury Bills 4.470% 08/12/99 3,282,791 700,000 U.S. Treasury Bills 4.370% 09/02/99 694,647 600,000 U.S. Treasury Bills 4.400% 09/23/99 593,840 250,000 U.S. Treasury Bills 4.450% 09/23/99 247,404 1,200,000 U.S. Treasury Bills 4.520% 09/23/99 1,187,344 1,000,000 U.S. Treasury Bills 4.590% 09/23/99 989,290 2,300,000 U.S. Treasury Bills 4.500% 09/23/99 2,275,850 5,400,000 U.S. Treasury Bills 4.575% 09/30/99 5,337,551 200,000 U.S. Treasury Bills 4.330% 10/07/99 197,643 3,000,000 U.S. Treasury Bills 4.480% 10/21/99 2,958,186 400,000 U.S. Treasury Bills 4.490% 10/21/99 394,413 1,000,000 U.S. Treasury Bills 4.570% 10/21/99 985,782 1,300,000 U.S. Treasury Bills 4.715% 11/26/99 1,274,801 5,000,000 U.S. Treasury Bills 4.715% 11/26/99 4,903,081 800,000 U.S. Treasury Bills 4.800% 12/02/99 783,573 3700,000 U.S. Treasury Bills 4.790% 12/02/99 3,624,185 2,100,000 U.S. Treasury Bills 4.730% 12/16/99 2,053,646 250,000 U.S. Treasury Bills 4.850% 12/16/99 244,342 1,100,000 U.S. Treasury Bills 4.830% 12/16/99 1,075,206 $1,400,000 U.S. Treasury Notes 5.875% 11/15/99 $ 1,410,974 2,000,000 U.S. Treasury Notes 5.875% 11/15/99 2,021,606 3,000,000 U.S. Treasury Notes 7.500% 10/31/99 3,062,223 4,500,000 U.S. Treasury Notes 5.875% 08/31/99 4,597,252 ---------- Total Investments At Amortized Cost -- 103.9% $ 83,394,574 Other Assets, less Liabilities -- (3.9%) (3,128,917) ---------- Net Assets -- 100.0% $ 80,265,657 =========== See notes to financial statements U.S. Government Near Term Portfolio (NTBP) - ------------------------------------------------------------------------------- Portfolio of Investments - June 30, 1999 (Unaudited)
Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity - --------------------------------------------------------------------------------------------------------------------------------- GOVERNMENT INTERESTS $ 1,950,000 Federal Home Loan Bank 4.860% 10/05/01 $ 98.062 $ 1,912,209 4.96% 5.89% 1,700,000 Federal Home Loan Bank 5.125% 2/26/02 98.437 1,673,429 5.21% 5.92% 2,000,000 Federal Home Loan Bank 5.675% 8/18/03 98.187 1,963,740 5.78% 6.11% 650,000 Federal Home Loan Bank 5.125% 9/15/03 96.312 626,028 5.32% 6.10% 1,000,000 Federal Home Loan Bank 5.535% 11/10/03 97.000 970,000 5.71% 6.25% 500,000 Federal Home Loan Bank 5.375% 12/08/03 96.719 483,595 5.56% 6.70% 500,000 Federal Home Loan Bank 5.400% 3/01/04 96.656 483,280 5.59% 6.14% 1,500,000 FHLMC 6.000% 1/12/04 98.109 1,471,635 6.12% 6.36% 1,500,000 FNLB 5.430% 6/08/01 99.266 1,488,990 5.47% 5.44% 1,000,000 FNMA 4.750% 11/14/03 94.750 947,500 5.01% 6.26% 1,000,000 FNMA 5.310% 9/15/00 99.531 995,310 5.34% 5.70% 1,500,000 FNMA 5.250% 11/19/01 98.641 1,479,615 5.32% 6.04% 1,925,000 FNMA 5.900% 7/09/03 97.937 1,885,287 6.02% 6.16% 1,300,000 FNMA 6.170% 8/05/03 98.312 1,278,056 6.28% 6.50% 1,500,000 FNMA 5.940% 8/18/03 97.891 1,468,365 6.07% 6.28% 1,500,000 FNMA 5.860% 8/20/03 97.844 1,467,660 5.99% 6.14% 1,500,000 FNMA 5.910% 8/25/03 98.281 1,474,215 6.01% 6.25% 1,500,000 FNMA 5.350% 10/27/03 96.359 1,445,385 5.55% 6.38% 1,475,000 FNMA 5.860% 1/20/04 97.750 1,441,813 5.99% 6.62% 1,770,000 FNMA 5.875% 4/23/04 97.516 1,726,033 6.02% 6.30% 1,300,000 U.S. Treasury Note 8.000% 8/15/99 100.391 1,305,083 7.97% 4.69% 2,000,000 U.S. Treasury Note 7.875% 11/15/99 101.031 2,020,620 7.79% 5.04% 2,500,000 U.S. Treasury Note 5.375% 1/31/00 100.187 2,504,675 5.36% 5.04% 2,000,000 U.S. Treasury Note 5.875% 2/15/00 100.422 2,008,440 5.85% 5.14% 1,500,000 U.S. Treasury Note 8.500% 2/15/00 102.047 1,530,705 8.33% 5.10% 11,100,000 U.S. Treasury Note 7.125% 2/29/00 101.266 11,240,526 7.04% 5.08% 7,000,000 U.S. Treasury Note 6.250% 5/31/00 100.812 7,056,840 6.20% 5.29% 8,000,000 U.S. Treasury Note 6.000% 8/15/00 100.641 8,051,280 5.96% 5.39% 1,400,000 U.S. Treasury Note 5.625% 11/30/00 100.266 1,403,724 5.61% 5.41% 9,650,000 U.S. Treasury Note 7.500% 11/15/01 104.172 10,052,598 7.20% 5.66% 2,600,000 U.S. Treasury Note 6.250% 2/28/02 101.500 2,639,000 6.16% 5.69% ----------- Total Investments (identified cost, $76,657,493) -- 98.1% $ 76,495,636 Other Assets, Less Liabilities -- 1.9% 1,478,441 ----------- Net Assets -- 100.0% $ 77,974,077 ============ Average Maturity -- 1.7 Years See notes to financial statements
U.S. Treasury Portfolio (USTBP) - ------------------------------------------------------------------------------- Portfolio of Investments - June 30, 1999 (Unaudited)
Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity - -------------------------------------------------------------------------------------------------------------------------------- $ 3,000,000 U. S. Treasury Notes 5.875% 11/15/99 $101.297 $ 3,008,910 5.86% 5.09% 2,700,000 U. S. Treasury Notes 5.375% 1/31/00 100.187 2,705,049 5.36% 5.04% 3,400,000 U. S. Treasury Notes 6.250% 5/31/00 100.812 3,427,608 6.20% 5.29% 4,450,000 U. S. Treasury Notes 5.250% 1/31/01 99.687 4,436,072 5.27% 5.43% 2,200,000 U. S. Treasury Notes 5.000% 2/28/01 99.218 2,182,796 5.04% 5.64% 6,000,000 U. S. Treasury Notes 6.500% 5/15/05 103.062 6,183,720 6.31% 5.92% 5,100,000 U. S. Treasury Notes 6.500% 8/15/05 103.078 5,256,978 6.31% 5.94% 2,500,000 U. S. Treasury Notes 6.500% 10/15/06 103.250 2,581,250 6.30% 5.95% 750,000 U. S. Treasury Notes 6.250% 2/15/07 101.891 764,183 6.13% 5.94% 1,500,000 U. S. Treasury Notes 6.625% 5/15/07 104.141 1,562,115 6.36% 5.96% 2,500,000 U. S. Treasury Notes 6.125% 8/15/07 101.078 2,526,950 6.06% 5.96% 600,000 U.S Treasury Bonds 11.625% 11/15/04 126.234 757,404 9.21% 5.94% 1,000,000 U.S Treasury Bonds 10.000% 5/15/10 119.125 1,191,250 8.39% 7.42% 1,300,000 U.S Treasury Bonds 14.000% 11/15/11 146.281 1,901,653 9.57% 8.06% 6,100,000 U.S Treasury Bonds 7.250% 5/15/16 109.984 6,709,024 6.59% 6.29% 1,700,000 U.S Treasury Bonds 6.250% 8/15/23 100.469 1,707,972 6.22% 6.21% 1,950,000 U.S Treasury Bonds 6.000% 2/15/26 97.578 1,902,771 6.15% 6.19% 3,550,000 U.S Treasury Bonds 5.500% 8/15/28 91.562 3,250,451 6.01% 6.13% ----------- Total Investments (identified cost, $51,177,651) - 94.7% $52,056,156 Other Assets, less Liabilities - 5.3% 2,920,216 ----------- Net Assets - 100.0% $54,976,372 ============ Average Maturity - 8.7 Years See notes to financial statements
Current Income Portfolio (CIFP) - ------------------------------------------------------------------------------- Portfolio of Investments - June 30, 1999 (Unaudited)
Face Coupon Maturity Market Current Amount Description Rate Date Price Value Yield - --------------------------------------------------------------------------------------------------------------------------------- GOVERNMENT INTERESTS - 95.3% $ 1,506 GNMA POOL # 000434 8.000% 4/15/01 $101.109 $ 1,524 7.91% 339 GNMA POOL # 000473 7.500% 4/15/01 100.771 342 7.44% 770,372 GNMA POOL # 000545 7.500% 12/20/22 100.718 775,904 7.45% 1,241,886 GNMA POOL # 000723 7.500% 1/20/23 100.718 1,250,803 7.45% 1,024,873 GNMA POOL # 001268 8.000% 7/20/23 102.641 1,051,940 7.79% 1,095 GNMA POOL # 001408 6.500% 3/15/02 99.296 1,088 6.55% 54,695 GNMA POOL # 001596 9.000% 4/20/21 106.124 58,045 8.48% 371,249 GNMA POOL # 001788 7.000% 7/20/24 98.438 365,450 7.11% 499,987 GNMA POOL # 002218 7.500% 5/20/26 100.562 502,798 7.46% 1,472,433 GNMA POOL # 002268 7.500% 8/20/26 100.562 1,480,709 7.46% 985,729 GNMA POOL # 002671 6.000% 11/20/28 93.094 917,655 6.45% 2,661,121 GNMA POOL # 002687 6.000% 12/20/28 93.094 2,477,345 6.45% 1,131 GNMA POOL # 003026 8.000% 1/15/04 102.264 1,157 7.82% 658 GNMA POOL # 003331 8.000% 1/15/04 102.264 674 7.82% 2,073 GNMA POOL # 004183 8.000% 7/15/04 102.264 2,120 7.82% 1,424 GNMA POOL # 004433 9.000% 11/15/04 104.403 1,488 8.62% 338,845 GNMA POOL # 004702 7.500% 2/15/26 100.937 342,020 7.43% 3,164 GNMA POOL # 005466 8.500% 3/15/05 103.702 3,282 8.20% 418 GNMA POOL # 005561 8.500% 4/15/05 103.258 432 8.23% 1,599,905 GNMA POOL # 005601 8.000% 11/15/26 102.843 1,645,391 7.78% 1,515 GNMA POOL # 005687 7.250% 2/15/05 100.698 1,526 7.20% 1,894 GNMA POOL # 005910 7.250% 2/15/05 100.899 1,911 7.19% 10,767 GNMA POOL # 007003 8.000% 7/15/05 102.555 11,042 7.80% 1,338 GNMA POOL # 007319 6.500% 10/15/04 98.823 1,323 6.58% 4,454 GNMA POOL # 009106 8.250% 5/15/06 103.523 4,611 7.97% 7,006 GNMA POOL # 009889 7.250% 2/15/06 100.865 7,067 7.19% 850 GNMA POOL # 011191 7.250% 4/15/06 100.865 858 7.19% 3,630 GNMA POOL # 012526 8.000% 11/15/06 103.176 3,745 7.75% 681,176 GNMA POOL # 044190 8.000% 12/15/26 102.843 700,542 7.78% 94,472 GNMA POOL # 151443 10.000% 3/15/16 106.519 100,631 9.39% 19,236 GNMA POOL # 153564 10.000% 4/15/16 106.433 20,474 9.40% 102,646 GNMA POOL # 172558 9.500% 8/15/16 107.405 110,247 8.85% 163,431 GNMA POOL # 176992 8.000% 11/15/16 103.656 169,407 7.72% 27,714 GNMA POOL # 177784 8.000% 10/15/16 103.656 28,728 7.72% 35,040 GNMA POOL # 180033 9.500% 9/15/16 107.405 37,635 8.85% 4,848 GNMA POOL # 188060 9.500% 10/15/16 107.405 5,208 8.85% 2,454 GNMA POOL # 190959 8.500% 2/15/17 105.262 2,584 8.08% 77,337 GNMA POOL # 192357 8.000% 4/15/17 103.593 80,116 7.72% 237,042 GNMA POOL # 194057 8.500% 4/15/17 105.262 249,516 8.08% 60,454 GNMA POOL # 194287 9.500% 3/15/17 107.393 64,924 8.85% 392,514 GNMA POOL # 194926 8.500% 2/15/17 105.262 413,169 8.08% 10,146 GNMA POOL # 196063 8.500% 3/15/17 105.262 10,680 8.08% 202,294 GNMA POOL # 203369 8.000% 12/15/16 103.656 209,690 7.72% 15,345 GNMA POOL # 206740 10.000% 10/15/17 106.713 16,376 9.37% 52,809 GNMA POOL # 206762 9.000% 4/15/21 106.499 56,242 8.45% 59,757 GNMA POOL # 207019 8.000% 3/15/17 103.593 61,904 7.72% 9,574 GNMA POOL # 208076 8.000% 4/15/17 103.593 9,919 7.72% 10,941 GNMA POOL # 210520 10.500% 8/15/17 107.844 11,800 9.74% 10,671 GNMA POOL # 210618 9.500% 4/15/17 107.393 11,460 8.85% 58,958 GNMA POOL # 211013 9.000% 1/15/20 106.593 62,845 8.44% $ 70,928 GNMA POOL # 211231 8.500% 5/15/17 $105.262 $ 74,660 8.08% 48,597 GNMA POOL # 212601 8.500% 6/15/17 105.262 51,155 8.08% 10,870 GNMA POOL # 218420 8.500% 11/15/21 105.062 11,421 8.09% 167,398 GNMA POOL # 219335 8.000% 5/15/17 103.593 173,413 7.72% 166,938 GNMA POOL # 220703 8.000% 5/15/17 103.593 172,936 7.72% 20,920 GNMA POOL # 220917 8.500% 4/15/17 105.262 22,021 8.08% 248,860 GNMA POOL # 222112 8.000% 1/15/22 103.093 256,557 7.76% 31,116 GNMA POOL # 223126 10.000% 8/15/17 106.713 33,205 9.37% 51,044 GNMA POOL # 223133 9.500% 7/15/17 107.393 54,818 8.85% 12,588 GNMA POOL # 223348 10.000% 8/15/18 106.713 13,433 9.37% 5,575 GNMA POOL # 223588 10.000% 12/15/18 106.761 5,952 9.37% 13,744 GNMA POOL # 224078 10.000% 7/15/18 106.713 14,667 9.37% 50,439 GNMA POOL # 228308 10.000% 1/15/19 106.713 53,826 9.37% 20,681 GNMA POOL # 228483 9.500% 9/15/19 107.368 22,206 8.85% 28,184 GNMA POOL # 230223 9.500% 4/15/18 107.380 30,265 8.85% 12,220 GNMA POOL # 235000 10.000% 1/15/18 106.657 13,034 9.38% 36,635 GNMA POOL # 245580 9.500% 7/15/18 107.380 39,340 8.85% 23,813 GNMA POOL # 247473 10.000% 9/15/18 106.519 25,366 9.39% 82,158 GNMA POOL # 247681 9.000% 11/15/19 106.687 87,652 8.44% 21,035 GNMA POOL # 247872 10.000% 9/15/18 106.761 22,458 9.37% 24,243 GNMA POOL # 250412 8.000% 3/15/18 103.531 25,099 7.73% 30,311 GNMA POOL # 251241 9.500% 6/15/18 107.380 32,549 8.85% 41,925 GNMA POOL # 258911 9.500% 9/15/18 107.380 45,020 8.85% 32,503 GNMA POOL # 260999 9.500% 9/15/18 107.380 34,902 8.85% 17,486 GNMA POOL # 263439 10.000% 2/15/19 106.761 18,669 9.37% 42,700 GNMA POOL # 265267 9.500% 8/15/20 107.355 45,841 8.85% 17,197 GNMA POOL # 266983 10.000% 2/15/19 106.761 18,361 9.37% 7,217 GNMA POOL # 273690 9.500% 8/15/19 107.368 7,750 8.85% 23,052 GNMA POOL # 274489 9.500% 12/15/19 107.368 24,751 8.85% 19,358 GNMA POOL # 275456 9.500% 8/15/19 107.368 20,784 8.85% 39,085 GNMA POOL # 275538 9.500% 1/15/20 107.355 41,960 8.85% 27,757 GNMA POOL # 277205 9.000% 12/15/19 106.687 29,613 8.44% 66,810 GNMA POOL # 285744 9.000% 5/15/20 106.593 71,215 8.44% 53,747 GNMA POOL # 286556 9.000% 3/15/20 106.593 57,291 8.44% 1,026 GNMA POOL # 287999 9.000% 9/15/20 106.593 1,095 8.44% 82,876 GNMA POOL # 289092 9.000% 4/15/20 106.593 88,341 8.44% 8,639 GNMA POOL # 289949 8.500% 7/15/21 105.062 9,077 8.09% 6,305 GNMA POOL # 290700 9.000% 8/15/20 106.593 6,721 8.44% 8,052 GNMA POOL # 291933 9.500% 7/15/20 107.355 8,644 8.85% 19,514 GNMA POOL # 293666 8.500% 6/15/21 105.062 20,503 8.09% 1,034 GNMA POOL # 294209 9.000% 7/15/21 106.499 1,102 8.45% 9,442 GNMA POOL # 297345 8.500% 8/15/20 105.112 9,925 8.09% 18,770 GNMA POOL # 301017 8.500% 6/15/21 105.062 19,721 8.09% 43,246 GNMA POOL # 301366 8.500% 6/15/21 105.062 45,435 8.09% 114,758 GNMA POOL # 302713 9.000% 2/15/21 106.499 122,217 8.45% 8,501 GNMA POOL # 302723 8.500% 5/15/21 105.062 8,932 8.09% 40,764 GNMA POOL # 302781 8.500% 6/15/21 105.062 42,828 8.09% 57,127 GNMA POOL # 302933 8.500% 6/15/21 105.062 60,020 8.09% 95,347 GNMA POOL # 304512 8.500% 5/15/21 105.062 100,174 8.09% 132,619 GNMA POOL # 305091 9.000% 7/15/21 106.499 141,239 8.45% 4,087 GNMA POOL # 306669 8.000% 7/15/21 103.343 4,224 7.74% $ 71,156 GNMA POOL # 306693 8.500% 9/15/21 $105.062 $ 74,759 8.09% 85,374 GNMA POOL # 308792 9.000% 7/15/21 106.499 90,923 8.45% 42,837 GNMA POOL # 311087 8.500% 7/15/21 105.062 45,006 8.09% 13,682 GNMA POOL # 314222 8.500% 4/15/22 104.875 14,349 8.10% 70,392 GNMA POOL # 314581 9.500% 10/15/21 107.343 75,561 8.85% 211,566 GNMA POOL # 315187 8.000% 6/15/22 103.093 218,110 7.76% 383,667 GNMA POOL # 315388 8.000% 2/15/22 103.093 395,535 7.76% 264,195 GNMA POOL # 315754 8.000% 1/15/22 103.093 272,367 7.76% 348,325 GNMA POOL # 316240 8.000% 1/15/22 103.093 359,100 7.76% 107,403 GNMA POOL # 316615 8.500% 11/15/21 105.062 112,840 8.09% 121,312 GNMA POOL # 317069 8.500% 12/15/21 105.062 127,453 8.09% 213,839 GNMA POOL # 317351 8.000% 5/15/22 103.093 220,453 7.76% 194,070 GNMA POOL # 317358 8.000% 5/15/22 103.093 200,073 7.76% 188,895 GNMA POOL # 318776 8.000% 2/15/22 103.093 194,738 7.76% 3,756 GNMA POOL # 318793 8.500% 2/15/22 104.875 3,940 8.10% 284,500 GNMA POOL # 319441 8.500% 4/15/22 104.875 298,370 8.10% 119,873 GNMA POOL # 321806 8.000% 5/15/22 103.093 123,581 7.76% 347,634 GNMA POOL # 321807 8.000% 5/15/22 103.093 358,386 7.76% 193,434 GNMA POOL # 321976 8.500% 1/15/22 104.875 202,864 8.10% 392,061 GNMA POOL # 323226 8.000% 6/15/22 103.093 404,188 7.76% 289,315 GNMA POOL # 323929 8.000% 2/15/22 103.093 298,264 7.76% 256,002 GNMA POOL # 325165 8.000% 6/15/22 103.093 263,921 7.76% 51,186 GNMA POOL # 325651 8.000% 6/15/22 103.093 52,769 7.76% 356,303 GNMA POOL # 329540 7.500% 8/15/22 101.156 360,422 7.41% 742,900 GNMA POOL # 329982 7.500% 2/15/23 101.093 751,020 7.42% 226,985 GNMA POOL # 331361 8.000% 11/15/22 103.093 234,007 7.76% 348,626 GNMA POOL # 335746 8.000% 10/15/22 103.093 359,409 7.76% 294,180 GNMA POOL # 335950 8.000% 10/15/22 103.093 303,280 7.76% 1,772,227 GNMA POOL # 336488 7.000% 8/15/23 99.031 1,755,055 7.07% 1,555,643 GNMA POOL # 348103 7.000% 6/15/23 99.031 1,540,569 7.07% 579,123 GNMA POOL # 348213 6.500% 8/15/23 96.718 560,117 6.72% 976,659 GNMA POOL # 350372 7.000% 4/15/23 99.031 967,196 7.07% 1,056,660 GNMA POOL # 350659 7.500% 6/15/23 101.093 1,068,210 7.42% 1,144,054 GNMA POOL # 350938 6.500% 8/15/23 96.718 1,106,507 6.72% 1,260,807 GNMA POOL # 352001 6.500% 12/15/23 96.718 1,219,428 6.72% 952,759 GNMA POOL # 352110 7.000% 8/15/23 99.031 943,527 7.07% 538,540 GNMA POOL # 362628 7.000% 8/15/23 99.031 533,322 7.07% 624,892 GNMA POOL # 363429 7.000% 8/15/23 99.031 618,837 7.07% 753,365 GNMA POOL # 367414 6.000% 11/15/23 94.094 708,871 6.38% 1,226,583 GNMA POOL # 367806 6.500% 9/15/23 96.718 1,186,327 6.72% 1,523,703 GNMA POOL # 368238 7.000% 12/15/23 99.031 1,508,939 7.07% 1,796,600 GNMA POOL # 368502 7.000% 2/15/24 98.969 1,778,078 7.07% 1,519,491 GNMA POOL # 370773 6.000% 11/15/23 94.094 1,429,751 6.38% 2,310,832 GNMA POOL # 372050 6.500% 2/15/24 96.718 2,234,991 6.72% 528,900 GNMA POOL # 372379 8.000% 10/15/26 102.843 543,938 7.78% 839,046 GNMA POOL # 372468 6.500% 12/15/27 96.156 806,794 6.76% 2,266,963 GNMA POOL # 376218 7.500% 8/15/25 100.968 2,288,907 7.43% 838,039 GNMA POOL # 376400 6.500% 2/15/24 96.718 810,535 6.72% 844,737 GNMA POOL # 387189 7.000% 2/15/24 98.969 836,028 7.07% 496,238 GNMA POOL # 398251 7.500% 9/15/25 100.968 501,042 7.43% 966,742 GNMA POOL # 405558 7.500% 1/15/26 100.937 975,801 7.43% $ 2,550,024 GNMA POOL # 410215 7.500% 12/15/25 $100.968 $ 2,574,709 7.43% 1,311,096 GNMA POOL # 410915 6.500% 2/15/26 96.406 1,263,976 6.74% 472,617 GNMA POOL # 414736 7.500% 11/15/25 100.968 477,192 7.43% 537,095 GNMA POOL # 417225 7.500% 1/15/26 100.937 542,128 7.43% 1,052,991 GNMA POOL # 417276 7.000% 2/15/26 98.656 1,038,839 7.10% 2,978,864 GNMA POOL # 420707 7.000% 2/15/26 98.656 2,938,824 7.10% 587,654 GNMA POOL # 421829 7.500% 4/15/26 100.937 593,160 7.43% 1,236,576 GNMA POOL # 422506 6.500% 3/15/26 96.406 1,192,134 6.74% 120,704 GNMA POOL # 423114 7.000% 9/15/27 98.656 119,082 7.10% 642,635 GNMA POOL # 424173 7.500% 3/15/26 100.937 648,657 7.43% 454,157 GNMA POOL # 427199 7.000% 12/15/27 98.656 448,054 7.10% 1,354,682 GNMA POOL # 430279 7.000% 10/15/27 98.656 1,336,475 7.10% 331,250 GNMA POOL # 431036 8.000% 7/15/26 102.843 340,668 7.78% 901,462 GNMA POOL # 436214 6.500% 2/15/13 99.000 892,448 6.57% 827,340 GNMA POOL # 436723 7.500% 11/15/26 100.937 835,093 7.43% 2,718,377 GNMA POOL # 436777 7.000% 4/15/27 98.656 2,681,843 7.10% 1,889,895 GNMA POOL # 440166 7.000% 2/15/27 98.656 1,864,495 7.10% 905,333 GNMA POOL # 442063 7.000% 10/15/26 98.656 893,166 7.10% 585,321 GNMA POOL # 442193 7.500% 12/15/26 100.937 590,806 7.43% 967,989 GNMA POOL # 442996 6.000% 6/15/13 96.906 938,040 6.19% 864,921 GNMA POOL # 446943 7.000% 4/15/27 98.656 853,292 7.10% 2,489,925 GNMA POOL # 448490 7.500% 3/15/27 100.937 2,513,256 7.43% 1,442,069 GNMA POOL # 449176 6.500% 7/15/28 96.156 1,386,632 6.76% 1,482,627 GNMA POOL # 457100 6.500% 11/15/28 96.156 1,425,635 6.76% 2,538,671 GNMA POOL # 458672 6.500% 1/15/28 96.156 2,441,085 6.76% 1,248,759 GNMA POOL # 458712 7.000% 11/15/27 98.656 1,231,976 7.10% 446,533 GNMA POOL # 460698 7.000% 10/15/27 98.656 440,532 7.10% 1,436,167 GNMA POOL # 460726 6.500% 12/15/27 96.156 1,380,962 6.76% 1,702,405 GNMA POOL # 462363 7.000% 11/15/27 98.656 1,679,525 7.10% 914,209 GNMA POOL # 462444 6.500% 12/15/27 96.156 879,067 6.76% 1,412,475 GNMA POOL # 462623 6.500% 3/15/28 96.156 1,358,180 6.76% 934,907 GNMA POOL # 468173 7.000% 8/15/28 98.656 922,342 7.10% 948,334 GNMA POOL # 469226 6.500% 3/15/28 96.156 911,880 6.76% 1,978,942 GNMA POOL # 469615 6.500% 10/15/28 96.156 1,902,872 6.76% 1,849,456 GNMA POOL # 472028 6.500% 5/15/28 96.156 1,778,363 6.76% 1,440,994 GNMA POOL # 480030 6.500% 6/15/28 96.156 1,385,603 6.76% 1,939,835 GNMA POOL # 484195 6.500% 8/15/28 96.156 1,865,268 6.76% 3,393,249 GNMA POOL # 486482 6.500% 9/15/28 96.156 3,262,813 6.76% 1,004,662 GNMA POOL # 488924 6.500% 11/15/28 96.156 966,044 6.76% 1,607,891 GNMA POOL # 780429 7.500% 9/15/26 100.937 1,622,953 7.43% 744,535 GNMA POOL # 780518 7.000% 6/15/26 98.656 734,544 7.10% ----------- Total Government Interests (identified cost, $102,811,996) - 97.8% $101,179,806 COMMERCIAL PAPER - 4.1% $ 4,255,000 AMERICAN EXPRESS CORP 5.501% 7/01/99 4,255,005 5.50% ----------- Total Investments (identified cost $107,067,001) - 101.9% $105,434,811 Other Assets, less Liabilities - (1.9%) (1,991,753) ----------- Net Assets - 100.0% $103,443,058 ============ See notes to financial statements
WRIGHT INVESTORS' SERVICE DISTRIBUTORS, INC. 1000 Lafayette Boulevard, Bridgeport, CT 06604 SEMI-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 255 State Street Boston, Massachusetts 02109 INVESTMENT ADVISER Wright Investors' Service 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 PRINCIPAL UNDERWRITER Wright Investors' Service Distributors, Inc. 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 (800) 888-9471 e-mail: funds@wrightinvestors.com 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 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-----