As filed with the Securities and Exchange Commission on August 24, 2017
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-3489
THE WRIGHT MANAGED EQUITY TRUST
177 West Putnam Ave.
Greenwich, Connecticut 06830
Michael J. McKeen, Principal Financial Officer
Three Canal Plaza, Suite 600
Portland, Maine 04101
207-347-2000
Date of fiscal year end: December 31
Date of reporting period: January 1, 2017 – June 30, 2017
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ITEM 1. REPORT TO STOCKHOLDERS.
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The Wright Managed Blue Chip Investment Funds
The Wright Managed Blue Chip Investment Funds consist of three equity funds from The Wright Managed Equity Trust and one fixed-income fund from The Wright Managed Income Trust. Each of the four funds have distinct investment objectives and policies. They can be used individually 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.
Approved Wright Investment List
Securities selected for investment in these funds are chosen mainly from a list of "investment grade" companies maintained by Wright Investors' Service ("Wright", "WIS" or the "Adviser"). Over 39,000 global companies (covering 85 countries) in Wright's database are screened as new data becomes available to determine any eligible additions or deletions to the list. The qualifications for inclusion as "investment grade" are companies that meet Wright's Quality Rating criteria. This rating includes fundamental criteria for investment acceptance, financial strength, profitability & stability and growth. In addition, securities, which are not included in Wright's "investment grade" list, may also be selected from companies in the fund's specific benchmark (up to 20% of the market value of the portfolio) in order to achieve broad diversification.
Three Equity Funds
Wright Selected Blue Chip Equities Fund (WSBC) (the "Fund") seeks to enhance total investment return through price appreciation plus income. The Fund's portfolio is characterized as a blend of growth and value stocks. The market capitalization of the companies is typically between $1-$10 billion at the time of the Fund's investment. The Adviser seeks to outperform the Standard & Poor's MidCap 400 Index ("S&P MidCap 400") by selecting stocks using fundamental company analysis and company specific criteria such as valuation and earnings trends. The portfolio is then diversified across industries and sectors.
Wright Major Blue Chip Equities Fund (WMBC) (the "Fund") seeks to enhance total investment return through price appreciation plus income by providing a broadly diversified portfolio of equities of larger well-established companies with market values of $5 billion or more. The Adviser seeks to outperform the Standard & Poor's 500 Index ("S&P 500") by selecting stocks, using fundamental company analysis and company specific criteria such as valuation and earnings trends. The portfolio is then diversified across industries and sectors.
Wright International Blue Chip Equities Fund (WIBC) (the "Fund") seeks total return consisting of price appreciation plus income by investing in a broadly diversified portfolio of equities of well-established, non-U.S. companies. The Fund 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. The Adviser seeks to outperform the MSCI World ex U.S. Index ("MSCI World ex U.S.") by selecting stocks using fundamental company analysis and company-specific criteria such as valuation and earnings trends. The portfolio is then diversified across industries, sectors and countries.
One Fixed-Income Fund
Wright Current Income Fund (WCIF) (the "Fund") may be invested in a variety of securities and may use a number of strategies, including GNMAs, to produce a high level of income with reasonable stability of principal. The Fund reinvests all principal payments. Dividends are accrued daily and paid monthly. The Fund's benchmark is the Bloomberg Barclays GNMA Backed Bond Index.
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Investment Objectives | inside front |
Letter to Shareholders | 2 |
Fund Expenses | 4 |
Board of Trustees Annual Approval of the Investment Advisory Agreement | 42 |
Important Notices Regarding Delivery of Shareholder Documents, Portfolio Holdings and Proxy Voting | 44 |
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FINANCIAL STATEMENTS
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Letter to Shareholders |
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Dear Shareholder:
SUMMARY: The stock market rally continued into the second quarter, but the bond market started to flash warning signals that years of central bank monetary accommodation may be ending. Despite profit-taking in some high-flying tech stocks in late June, NASDAQ returned nearly 15% in the first half, well ahead of 2016's full-year return of less than 9%. Both the Dow and S&P have returned 9.3% so far this year. Foreign stocks continued to outperform their American counterparts in dollar terms as the greenback lost ground against rival currencies. The Federal Reserve raised interest rates again in June, while the European Central Bank hinted that it may soon join the Fed in tightening monetary policy.
Despite some profit-taking in high-tech stocks in June, U.S. equities had solid positive returns in the second quarter, boosting their year-to-date 2017 returns well above the pace they set last year. The tech-heavy NASDAQ continued to be the U.S. market leader this year, returning 4.2%, including dividends, in Q2; year-to-date, the index is up 14.7%, well ahead of its 8.9% return last year. The Dow Jones Industrial Average returned an even 4% in the quarter while the S&P 500 gained 3.1%; both indexes returned 9.3% in the first half.
Foreign stocks continued to outperform their American counterparts in 2017, largely due to a weak U.S. dollar. The MSCI Europe ex U.K. index gained 8.4% in dollar terms in the second quarter, boosting its YTD return to 17.5%. In Asia, Chinese stocks have been the best performers, largely due to a soaring Hong Kong market. The MSCI China index has returned nearly 25% so far this year after gaining more than 10% in the second quarter. The MSCI emerging markets index was up 18.4% in dollar terms in the first half after climbing 6.3% in Q2, while Japanese stocks returned nearly 10% in the first half, with more than half of the gain coming in Q2.
Bonds had positive returns in the second quarter and first half but started to weaken late in June amid growing signs that central bank monetary accommodation is slowly receding. Both the Bloomberg Barclays U.S. Bond Market Aggregate and its global aggregate fell 0.1% in June. The U.S. index returned 1.4% in the second quarter and 2.3% in the first half, while the global aggregate, ex U.S., has returned 3.5% and 6.1%, respectively, largely due to the weaker dollar.
Following a weak first quarter, the U.S. economy showed few signs of picking up speed in Q2. First quarter GDP was revised higher but still came in at a tepid annual growth rate of just 1.4%. Moving into the second quarter, the Fed's Beige Book covering most of April and May said that "a majority of districts reported that firms expressed positive near-term outlooks; however, optimism waned somewhat in a few districts." Consumer spending indicators have been particularly weak. Despite a 0.4% gain in personal incomes, consumer spending rose a modest 0.1% in May after rising by 0.4% in each of the two previous months. Retail sales fell 0.3%, the biggest one-month decline since January 2016. Auto industry reports continue to show signs that the boom in car sales is over. Housing indicators have been uneven, but the overall trend shows the market losing steam, mainly due to higher prices. Sales of both existing and newly-built homes rose in May, with median sale prices rising to record levels. But pending home sales, a forward indicator, fell 0.8% in May, their third monthly drop in a row. While the unemployment rate has fallen to 4.3%, a 16-year low, job growth remains weak and uneven. The economy added just 138,000 jobs in May, although they rebounded in June. Inflation has fallen back below the Fed's target of 2%.
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 | 2 |  |
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Letter to Shareholders |
The Fed's decision at its June meeting to raise interest rates for the third time since last December might lead one to believe that the end of central bank monetary accommodation has arrived. If that's the case, it might also be argued that the end of the eight-year bull market in stocks and bonds may also be in sight. But the recent economic performance of the major economies doesn't necessarily justify that belief. U.S. economic growth remains basically at stall speed. Indeed, by some measures, growth in the euro zone has now surpassed that of the U.S. The Republican agenda to lower taxes and reform the regulatory environment has yet to become law. As a result, the Fed may need to be just as worried that the economy is too weak as that it's too strong. The bottom line is that we're not out of the woods yet, so we can expect accommodative monetary policies to be around at least for a little while yet. That bolsters the continued case for holding a well-diversified portfolio of high-quality financial assets.
Sincerely,
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STATEMENT OF ASSETS AND LIABILITIES | Â | |||||
As of June 30, 2017 | Â | |||||
 |  |  |  |  |  |  |
ASSETS: | Â | Â | FALSE | Â | ||
 | Investments, at value |  |  |  |  | |
 | (identified cost $22,515,225) (Note 1A) |  | $ | 30,319,864 | ###### | |
 | Receivable for fund shares sold |  |  | 40 |  | |
 | Receivable for investment securities sold |  |  | 256,495 |  | |
 | Dividends receivable |  |  | 55,614 |  | |
 | Prepaid expenses and other assets |  |  | 22,208 |  | |
 | Total assets |  | $ | 30,654,221 |  | |
 |  |  |  |  |  |  |
LIABILITIES: | Â | Â | Â | Â | ||
 | Payable for fund shares reacquired |  | $ | 5,000 |  | |
 | Accrued expenses and other liabilities |  |  |  |  | |
 |  | Administrator fee |  |  | 3,926 |  |
 |  | Transfer agent fee |  |  | 1,364 |  |
 |  | Other expenses and liabilities |  |  | 7,982 |  |
 | Total liabilities |  | $ | 18,272 |  | |
NET ASSETS | Â | $ | 30,635,949 | Â | ||
 |  |  |  |  |  |  |
NET ASSETS CONSIST OF: | Â | Â | Â | Â | ||
 | Paid-in capital |  | $ | 21,510,338 |  | |
 | Accumulated net realized gain on investments |  |  | 1,295,177 |  | |
 | Undistributed net investment income |  |  | 25,795 |  | |
 | Unrealized appreciation on investments |  |  | 7,804,639 |  | |
 | Net assets applicable to outstanding shares |  | $ | 30,635,949 |  | |
 |  |  |  |  |  |  |
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED) | Â | Â | 2,514,489 | Â | ||
 |  |  |  |  |  |  |
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST | Â | $ | 12.18 | Â | ||
 |  |  |  |  |  |  |
STATEMENT OF OPERATIONS | ||||||
For the Six Months Ended June 30, 2017 | ||||||
 |  |  |  |  |  |  |
INVESTMENT INCOME (Note 1C) | Â | Â | FALSE | Â | ||
2E+07 | Dividend income | Â | $ | 254,205 | Â | |
 | Total investment income |  | $ | 254,205 |  | |
 |  |  |  |  |  |  |
Expenses – |  |  |  |  | ||
 | Investment adviser fee (Note 3) |  | $ | 97,541 |  | |
 | Administrator fee (Note 3) |  |  | 19,508 |  | |
 | Trustee expense (Note 3) |  |  | 5,390 |  | |
 | Custodian fee |  |  | 2,404 |  | |
 | Accountant fee |  |  | 18,804 |  | |
 | Distribution expenses (Note 4) |  |  | 40,642 |  | |
 | Transfer agent fee |  |  | 14,384 |  | |
 | Printing |  |  | 57 |  | |
 | Shareholder communications |  |  | 3,011 |  | |
 | Audit services |  |  | 8,326 |  | |
 | Legal services |  |  | 5,683 |  | |
 | Compliance services |  |  | 3,100 |  | |
 | Registration costs |  |  | 9,909 |  | |
 | Interest expense (Note 8) |  |  | 813 |  | |
 | Miscellaneous |  |  | 12,611 |  | |
 | Total expenses |  | $ | 242,183 |  | |
 |  |  |  |  |  |  |
Deduct – |  |  |  |  | ||
 | Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4) |  | $ | (13,773 | ) | |
 | Net expenses |  | $ | 228,410 |  | |
 | Net investment income |  | $ | 25,795 |  | |
 |  |  |  |  |  |  |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | Â | |||||
 | Net realized gain on investment transactions |  | $ | 1,513,334 |  | |
 | Net change in unrealized appreciation (depreciation) on investments |  |  | 340,285 |  | |
 | Net realized and unrealized gain on investments |  | $ | 1,853,619 |  | |
 | Net increase in net assets from operations |  | $ | 1,879,414 |  | |
 |  |  |  |  |  |  |
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See Notes to Financial Statements. | 8 | Â |
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Wright Selected Blue Chip Equities Fund (WSBC) |
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 |  |  |  |  |  |  |  |  |  |  |
 |  |  |  |  |  |  |  |  | ||
 |  |  | Six Months Ended |  | Year Ended |  | ||||
STATEMENTS OF CHANGES IN NET ASSETS | Â | June 30, 2017 | Â | December 31, 2016 | Â | |||||
INCREASE (DECREASE) IN NET ASSETS: | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
 From operations – |  |  |  |  |  |  |  |  |  | |
 | Net investment income |  | $ | 25,795 |  |  | $ | 156,374 |  |  |
0 | Net realized gain on investment transactions | Â | Â | 1,513,334 | Â | Â | Â | 671,319 | Â | Â |
 | Net change in unrealized appreciation (depreciation) on investments |  |  | 340,285 |  |  |  | 1,398,751 |  |  |
 | Net increase in net assets from operations |  | $ | 1,879,414 |  |  | $ | 2,226,444 |  |  |
Distributions to shareholders (Note 2) | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
 | From net investment income |  | $ | - |  |  | $ | (152,168 | ) |  |
 | From net realized capital gains |  |  | (837,853 | ) |  |  | (831,095 | ) |  |
 | Total distributions |  | $ | (837,853 | ) |  | $ | (983,263 | ) |  |
Net decrease in net assets resulting from fund share transactions (Note 6) | Â | $ | (4,350,849 | ) | Â | $ | (5,804,590 | ) | Â | |
Net decrease in net assets | Â | $ | (3,309,288 | ) | Â | $ | (4,561,409 | ) | Â | |
## | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
NET ASSETS: | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
 | At beginning of period |  |  | 33,945,237 |  |  |  | 38,506,646 |  |  |
 | At end of period |  | $ | 30,635,949 |  |  | $ | 33,945,237 |  |  |
 |  |  |  |  |  |  |  |  |  |  |
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD | Â | $ | 25,795 | Â | Â | $ | - | Â | Â | |
 |  |  |  |  |  |  |  |  |  |  |
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See Notes to Financial Statements. | 9 | Â |
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Wright Selected Blue Chip Equities Fund (WSBC) |
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Total Return(3) | Â | 5.76 | %(4) | Â | Â | 5.98 | % | Â | (0.22 | )% | Â | 7.99 | % | Â | 39.82 | % | Â | 16.02 | % |
These financial highlights reflect selected data for a share outstanding throughout each period. | Â | Â | Â | Â | Â | Â | ||||||||||||||
 |  | Six Months Ended | Years Ended December 31, | |||||||||||||||||
FINANCIAL HIGHLIGHTS | June 30, 2017 | Â | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net asset value, beginning of period | $ | 11.810 | Â | Â | $ | 11.430 | Â | $ | 12.740 | Â | $ | 14.160 | Â | $ | 11.530 | Â | $ | 10.280 | Â | |
Income (loss) from investment operations: | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
Net investment income (loss) (1) | Â | 0.010 | Â | Â | Â | 0.046 | Â | Â | 0.032 | Â | Â | 0.027 | Â | Â | (0.007 | ) | Â | 0.028 | Â | |
Net realized and unrealized gain (loss) | Â | 0.669 | Â | Â | Â | 0.620 | Â | Â | (0.030 | ) | Â | 1.043 | Â | Â | 4.412 | Â | Â | 1.616 | Â | |
 | Total income from investment operations |  | 0.679 |  |  |  | 0.665 |  |  | 0.002 |  |  | 1.070 |  |  | 4.405 |  |  | 1.644 |  |
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | |
Less distributions: | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
From net investment income |  | — |  |  |  | (0.053 | ) |  | (0.019 | ) |  | (0.036 | ) |  | — | (2) |  | (0.025 | ) | |
From net realized gains | Â | (0.309 | ) | Â | Â | (0.233 | ) | Â | (1.293 | ) | Â | (2.454 | ) | Â | (1.775 | ) | Â | (0.369 | ) | |
 | Total distributions |  | (0.309 | ) |  |  | (0.286 | ) |  | (1.312 | ) |  | (2.490 | ) |  | (1.775 | ) |  | (0.394 | ) |
Net asset value, end of period | $ | 12.180 | Â | Â | $ | 11.810 | Â | $ | 11.430 | Â | $ | 12.740 | Â | $ | 14.160 | Â | $ | 11.530 | Â |
Total Return(3) | Â | 5.76 | %(4) | Â | Â | 5.98 | % | Â | (0.22 | )% | Â | 7.99 | % | Â | 39.82 | % | Â | 16.02 | % |
Ratios/Supplemental Data(6): | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
Net assets, end of period (000 omitted) | $30,636 | Â | Â | $33,945 | Â | $38,507 | Â | $37,610 | Â | $40,204 | Â | $29,922 | Â | |||||||
Ratios (As a percentage of average daily net assets): | ||||||||||||||||||||
Net expenses | Â | 1.40 | %(5) | 1.40 | % | 1.40 | % | 1.45 | % | 1.40 | % | 1.40 | % | |||||||
Net investment income (loss) | Â | 0.16 | %(5) | 0.41 | % | 0.25 | % | 0.19 | % | (0.06 | )% | 0.25 | % | |||||||
Portfolio turnover rate | Â | 24 | %(4) | 77 | % | 55 | % | 66 | % | 76 | % | 54 | % | |||||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | |
 |  |  | For the six months ended June 30, 2017, and for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 | For the six months ended June 30, 2017, and for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 |  |  |  |  |  |  |  |  |  | |||||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(1) | Computed using average shares outstanding. | |||||||||||||||||||
(2) | Less than $0.001 per share. | |||||||||||||||||||
(3) | Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date. | |||||||||||||||||||
(4) | Not annualized. | |||||||||||||||||||
(5) | Annualized. | |||||||||||||||||||
(6) | For each of the periods presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income (loss) ratios would have been as follows: | |||||||||||||||||||
 |  | 2017 |  | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||
 |  | |||||||||||||||||||
Ratios (As a percentage of average daily net assets): | Â | |||||||||||||||||||
Expenses | Â | 1.49 | %(5) | Â | 1.42 | % | Â | 1.44 | % | Â | 1.51 | % | Â | 1.43 | % | Â | 1.48 | % | ||
Net investment income (loss) | Â | 0.07 | %(5) | Â | 0.39 | % | Â | 0.21 | % | Â | 0.13 | % | Â | (0.09 | )% | Â | 0.17 | % | ||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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See Notes to Financial Statements. | 10 | Â |
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Wright Major Blue Chip Equities Fund (WMBC) Portfolio of Investments – As of June 30, 2017 |
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 | Shares |  |  | Value |  |
EQUITY INTERESTS - 98.5% |
BANKS - 7.4% | |||||
Bank of America Corp. | 6,380 | Â | $ | 154,779 | Â |
Citigroup, Inc. | 3,850 | Â | Â | 257,488 | Â |
JPMorgan Chase & Co. | 4,320 | Â | Â | 394,848 | Â |
U.S. Bancorp | 2,370 | Â | Â | 123,050 | Â |
 |  |  | $ | 930,165 |  |
CAPITAL GOODS - 11.0% | |||||
Boeing Co. (The) | 1,515 | Â | $ | 299,591 | Â |
General Dynamics Corp. | 1,300 | Â | Â | 257,530 | Â |
Huntington Ingalls Industries, Inc. | 760 | Â | Â | 141,482 | Â |
Lockheed Martin Corp. | 915 | Â | Â | 254,013 | Â |
Northrop Grumman Corp. | 980 | Â | Â | 251,576 | Â |
Raytheon Co. | 1,055 | Â | Â | 170,361 | Â |
 |  |  | $ | 1,374,553 |  |
DIVERSIFIED FINANCIALS - 3.2% | |||||
Ameriprise Financial, Inc. | 760 | Â | $ | 96,740 | Â |
Bank of New York Mellon Corp. (The) | 3,085 | Â | Â | 157,397 | Â |
Charles Schwab Corp.(The) | 3,325 | Â | Â | 142,842 | Â |
 |  |  | $ | 396,979 |  |
ENERGY - 3.9% | |||||
Anadarko Petroleum Corp. | 3,780 | Â | $ | 171,385 | Â |
Exxon Mobil Corp. | 1,475 | Â | Â | 119,077 | Â |
Marathon Oil Corp. | 8,135 | Â | Â | 96,400 | Â |
Schlumberger, Ltd. | 1,515 | Â | Â | 99,747 | Â |
 |  |  | $ | 486,609 |  |
FOOD & STAPLES RETAILING - 1.8% | |||||
CVS Health Corp. | 1,455 | Â | $ | 117,069 | Â |
Walgreens Boots Alliance, Inc. | 1,410 | Â | Â | 110,417 | Â |
 |  |  | $ | 227,486 |  |
FOOD, BEVERAGE & TOBACCO - 5.6% | |||||
Constellation Brands, Inc. - Class A | 625 | Â | $ | 121,081 | Â |
PepsiCo, Inc. | 2,420 | Â | Â | 279,486 | Â |
Philip Morris International, Inc. | 2,570 | Â | Â | 301,847 | Â |
 |  |  | $ | 702,414 |  |
HEALTH CARE EQUIPMENT & SERVICES - 8.1% | |||||
Aetna, Inc. | 1,365 | Â | $ | 207,248 | Â |
Anthem, Inc. | 2,500 | Â | Â | 470,325 | Â |
UnitedHealth Group, Inc. | 1,820 | Â | Â | 337,464 | Â |
 |  |  | $ | 1,015,037 |  |
INSURANCE - 6.6% | |||||
Allstate Corp. (The) | 1,780 | Â | $ | 157,423 | Â |
MetLife, Inc. | 4,775 | Â | Â | 262,339 | Â |
Progressive Corp. (The) | 9,400 | Â | Â | 414,446 | Â |
 |  |  | $ | 834,208 |  |
MATERIALS - 2.1% | |||||
Dow Chemical Co. (The) | 3,260 | Â | $ | 205,608 | Â |
FMC Corp. | 860 | Â | Â | 62,823 | Â |
 |  |  | $ | 268,431 |  |
 | Shares |  |  | Value |  |
MEDIA - 4.2% | |||||
Comcast Corp. - Class A | 13,485 | Â | $ | 524,836 | Â |
PHARMACEUTICALS & BIOTECHNOLOGY - 7.5% | |||||
AbbVie, Inc. | 2,415 | Â | $ | 175,112 | Â |
Amgen, Inc. | 1,210 | Â | Â | 208,398 | Â |
Biogen, Inc.* | 385 | Â | Â | 104,474 | Â |
Bioverativ, Inc.* | 1,272 | Â | Â | 76,536 | Â |
Celgene Corp.* | 985 | Â | Â | 127,922 | Â |
Gilead Sciences, Inc. | 3,560 | Â | Â | 251,977 | Â |
 |  |  | $ | 944,419 |  |
RETAILING - 7.1% | |||||
Amazon.com, Inc.* | 515 | Â | $ | 498,520 | Â |
Home Depot, Inc. (The) | 1,660 | Â | Â | 254,644 | Â |
Priceline Group, Inc. (The)* | 75 | Â | Â | 140,289 | Â |
 |  |  | $ | 893,453 |  |
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 2.2% | |||||
Intel Corp. | 8,110 | Â | $ | 273,631 | Â |
SOFTWARE & SERVICES - 16.0% | |||||
Activision Blizzard, Inc. | 4,835 | Â | $ | 278,351 | Â |
Alphabet, Inc. - Class C* | 380 | Â | Â | 345,317 | Â |
Facebook, Inc.- Class A* | 1,290 | Â | Â | 194,764 | Â |
International Business Machines Corp. | 1,745 | Â | Â | 268,433 | Â |
MasterCard, Inc. - Class A | 2,730 | Â | Â | 331,559 | Â |
Microsoft Corp. | 8,565 | Â | Â | 590,386 | Â |
 |  |  | $ | 2,008,810 |  |
TECHNOLOGY HARDWARE & EQUIPMENT - 4.7% | |||||
Apple, Inc. | 4,070 | Â | $ | 586,161 | Â |
TELECOMMUNICATION SERVICES - 2.1% | |||||
AT&T, Inc. | 6,890 | Â | $ | 259,960 | Â |
TRANSPORTATION - 2.8% | |||||
Southwest Airlines Co. | 5,675 | Â | $ | 352,645 | Â |
UTILITIES - 2.2% | |||||
NextEra Energy, Inc. | 1,965 | Â | $ | 275,356 | Â |
TOTAL EQUITY INTERESTS - 98.5% (identified cost, $10,347,460) | Â | $ | 12,355,153 | Â |
SHORT-TERM INVESTMENTS - 1.4% | |||||
Fidelity Investments Money Market Government Portfolio - Class I, 0.82% (1) | 171,350 | Â | $ | 171,350 | Â |
TOTAL SHORT-TERM INVESTMENTS - 1.4% (identified cost, $171,350) | Â | $ | 171,350 | Â |
TOTAL INVESTMENTS — 99.9% (identified cost, $10,518,810) |  | $ | 12,526,503 |  |
OTHER ASSETS, IN EXCESS OF LIABILITIES — 0.1% |  |  | 16,980 |  |
NET ASSETS — 100.0% |  | $ | 12,543,483 |  |
* — Non-income producing security.
(1) | Variable rate security. Rate presented is as of June 30, 2017. |
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See Notes to Financial Statements. | 11 | Â |
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Wright Major Blue Chip Equities Fund (WMBC) Portfolio of Investments – As of June 30, 2017 |
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Portfolio Composition by Sector | |
% of total investments at June 30, 2017 | |
Information Technology | 23.2% |
Financials | 17.5% |
Health Care | 15.9% |
Industrials | 14.0% |
Conumer Discretionary | 11.5% |
Consumer Staples | 7.5% |
Energy | 3.9% |
Utilities | 2.2% |
Materials | 2.2% |
Telecom Services | 2.1% |
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See Notes to Financial Statements. | 12 | Â |
Â
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Wright Major Blue Chip Equities Fund (WMBC) Â |
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STATEMENT OF ASSETS AND LIABILITIES | ||||||
As of June 30, 2017 | ||||||
 |  |  |  |  |  | |
ASSETS: | Â | Â | Â | Â | ||
 | Investments, at value |  |  |  |  | |
 | (identified cost $10,518,810) (Note 1A) |  | $ | 12,526,503 | ###### | |
 | Receivable for fund shares sold |  |  | 336 |  | |
 | Dividends receivable |  |  | 9,457 |  | |
 | Prepaid expenses and other assets |  |  | 20,194 |  | |
 | Total assets |  | $ | 12,556,490 |  | |
 |  |  |  |  |  |  |
LIABILITIES: | Â | Â | Â | Â | ||
 | Accrued expenses and other liabilities |  |  |  |  | |
 |  | Administrator fee |  |  | 2,585 |  |
 |  | Transfer agent fee |  |  | 1,626 |  |
 |  | Trustee expenses |  |  | 1,209 |  |
 |  | Other expenses and liabilities |  |  | 7,587 |  |
 | Total liabilities |  | $ | 13,007 |  | |
NET ASSETS | Â | $ | 12,543,483 | Â | ||
 |  |  |  |  |  |  |
NET ASSETS CONSIST OF: | Â | Â | Â | Â | ||
 | Paid-in capital |  | $ | 10,435,479 |  | |
 | Accumulated net realized gain on investments |  |  | 66,336 |  | |
 | Undistributed net investment income |  |  | 33,975 |  | |
 | Unrealized appreciation on investments |  |  | 2,007,693 |  | |
 | Net assets applicable to outstanding shares |  | $ | 12,543,483 |  | |
 |  |  |  |  |  |  |
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED) | Â | Â | 614,420 | Â | ||
 |  |  |  |  |  |  |
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST | Â | $ | 20.42 | Â | ||
 |  |  |  |  |  |  |
STATEMENT OF OPERATIONS | ||||||
For the Six Months Ended June 30, 2017 | ||||||
 |  |  |  |  |  |  |
INVESTMENT INCOME (Note 1C) | Â | Â | FALSE | Â | ||
1E+07 | Dividend income | Â | $ | 118,846 | Â | |
 | Total investment income |  | $ | 118,846 |  | |
 |  |  |  |  |  |  |
Expenses – |  |  |  |  | ||
 | Investment adviser fee (Note 3) |  | $ | 36,367 |  | |
 | Administrator fee (Note 3) |  |  | 7,273 |  | |
 | Trustee expense (Note 3) |  |  | 5,520 |  | |
 | Custodian fee |  |  | 2,505 |  | |
 | Accountant fee |  |  | 18,596 |  | |
 | Distribution expenses (Note 4) |  |  | 15,153 |  | |
 | Transfer agent fee |  |  | 12,447 |  | |
 | Printing |  |  | 21 |  | |
 | Shareholder communications |  |  | 2,515 |  | |
 | Audit services |  |  | 8,681 |  | |
 | Legal services |  |  | 1,868 |  | |
 | Compliance services |  |  | 2,766 |  | |
 | Registration costs |  |  | 10,187 |  | |
 | Interest expense (Note 8) |  |  | 15 |  | |
 | Miscellaneous |  |  | 7,812 |  | |
 | Total expenses |  | $ | 131,726 |  | |
 |  |  |  |  |  |  |
Deduct – |  |  |  |  | ||
 | Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4) |  | $ | (46,855 | ) | |
 | Net expenses |  | $ | 84,871 |  | |
 | Net investment income |  | $ | 33,975 |  | |
 |  |  |  |  |  |  |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | Â | |||||
 | Net realized gain on investment transactions |  | $ | 238,278 |  | |
 | Net change in unrealized appreciation (depreciation) on investments |  |  | 974,881 |  | |
 | Net realized and unrealized gain on investments |  | $ | 1,213,159 |  | |
 | Net increase in net assets from operations |  | $ | 1,247,134 |  | |
 |  |  |  |  |  |  |
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See Notes to Financial Statements. | 13 | Â |
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Wright Major Blue Chip Equities Fund (WMBC) Â |
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 |  |  |  |  |  |  |  |  |  |  |
 |  |  |  |  |  |  |  |  | ||
 |  |  | Six Months Ended |  | Year Ended |  | ||||
STATEMENTS OF CHANGES IN NET ASSETS | Â | June 30, 2017 | Â | December 31, 2016 | Â | |||||
INCREASE (DECREASE) IN NET ASSETS: | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
 From operations – |  |  |  |  |  |  |  |  |  | |
 | Net investment income |  | $ | 33,975 |  |  | $ | 105,738 |  |  |
0 | Net realized gain (loss) on investment transactions | Â | Â | 238,278 | Â | Â | Â | (170,985 | ) | Â |
 | Net change in unrealized appreciation (depreciation) on investments |  |  | 974,881 |  |  |  | 1,120,300 |  |  |
 | Net increase in net assets from operations |  | $ | 1,247,134 |  |  | $ | 1,055,053 |  |  |
Distributions to shareholders (Note 2) | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
 | From net investment income |  | $ | - |  |  | $ | (108,099 | ) |  |
 | From net realized capital gains |  |  | - |  |  |  | (939,427 | ) |  |
 | Total distributions |  | $ | - |  |  | $ | (1,047,526 | ) |  |
Net decrease in net assets resulting from fund share transactions (Note 6) | Â | $ | (319,928 | ) | Â | $ | (1,188,235 | ) | Â | |
Net increase (decrease) in net assets | Â | $ | 927,206 | Â | Â | $ | (1,180,708 | ) | Â | |
## | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
NET ASSETS: | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
 | At beginning of period |  |  | 11,616,277 |  |  |  | 12,796,985 |  |  |
 | At end of period |  | $ | 12,543,483 |  |  | $ | 11,616,277 |  |  |
 |  |  |  |  |  |  |  |  |  |  |
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD | Â | $ | 33,975 | Â | Â | $ | - | Â | Â | |
 |  |  |  |  |  |  |  |  |  |  |
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See Notes to Financial Statements. | 14 | Â |
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Wright Major Blue Chip Equities Fund (WMBC) Â |
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These financial highlights reflect selected data for a share outstanding throughout each period. | Â | Â | Â | Â | Â | Â | ||||||||||||||
 |  | Six Months Ended | Years Ended December 31, | |||||||||||||||||
FINANCIAL HIGHLIGHTS | June 30, 2017 | Â | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net asset value, beginning of period | $ | 18.420 | Â | Â | $ | 18.360 | Â | $ | 19.100 | Â | $ | 17.030 | Â | $ | 12.690 | Â | $ | 12.260 | Â | |
Income (loss) from investment operations: | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
Net investment income (1) | Â | 0.055 | Â | Â | Â | 0.154 | Â | Â | 0.168 | Â | Â | 0.127 | Â | Â | 0.096 | Â | Â | 0.082 | Â | |
Net realized and unrealized gain (loss) | Â | 1.945 | Â | Â | Â | 1.464 | Â | Â | (0.727 | ) | Â | 2.095 | Â | Â | 4.344 | Â | Â | 0.437 | Â | |
 | Total income (loss) from investment operations |  | 2.000 |  |  |  | 1.618 |  |  | (0.559 | ) |  | 2.222 |  |  | 4.440 |  |  | 0.519 |  |
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | |
Less distributions: | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
From net investment income |  | — |  |  |  | (0.172 | ) |  | (0.181 | ) |  | (0.152 | ) |  | (0.100 | ) |  | (0.089 | ) | |
From net realized gains |  | — |  |  |  | (1.386 | ) |  | — |  |  | — |  |  | — |  |  | — |  | |
 | Total distributions |  | — |  |  |  | (1.558 | ) |  | (0.181 | ) |  | (0.152 | ) |  | (0.100 | ) |  | (0.089 | ) |
Net asset value, end of period | $ | 20.420 | Â | Â | $ | 18.420 | Â | $ | 18.360 | Â | $ | 19.100 | Â | $ | 17.030 | Â | $ | 12.690 | Â | |
Total Return(2) | Â | 10.80 | %(3) | Â | 9.43 | % | Â | (2.91 | )% | Â | 13.04 | % | Â | 35.03 | % | Â | 4.23 | % | ||
Ratios/Supplemental Data(5): | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
Net assets, end of period (000 omitted) | $12,543 | Â | Â | $11,616 | Â | $12,797 | Â | $15,925 | Â | $17,692 | Â | $15,559 | Â | |||||||
Ratios (As a percentage of average daily net assets): | ||||||||||||||||||||
Net expenses | Â | 1.40 | %(4) | 1.40 | % | 1.40 | % | 1.40 | % | 1.40 | % | 1.40 | % | |||||||
Net investment income | Â | 0.56 | %(4) | 0.88 | % | 0.89 | % | 0.71 | % | 0.65 | % | 0.64 | % | |||||||
Portfolio turnover rate | Â | 15 | %(3) | 44 | % | 118 | % | 62 | % | 64 | % | 76 | % | |||||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | |
 |  |  | For the six months ended June 30, 2017, and for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 | For the six months ended June 30, 2017, and for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 |  |  |  |  |  |  |  |  |  | |||||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(1) | Computed using average shares outstanding. | |||||||||||||||||||
(2) | Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date. | |||||||||||||||||||
(3) | Not annualized. | |||||||||||||||||||
(4) | Annualized. | |||||||||||||||||||
(5) | For each of the periods presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income (loss) ratios would have been as follows: | |||||||||||||||||||
 |  | 2017 |  | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||
 |  | |||||||||||||||||||
Ratios (As a percentage of average daily net assets): | Â | |||||||||||||||||||
Expenses | Â | 2.17 | %(4) | Â | 2.20 | % | Â | 2.05 | % | Â | 1.86 | % | Â | 1.87 | % | Â | 1.84 | % | ||
Net investment income (loss) | Â | (0.21 | )%(4) | Â | 0.08 | % | Â | 0.24 | % | Â | 0.25 | % | Â | 0.17 | % | Â | 0.20 | % | ||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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See Notes to Financial Statements. | 15 | Â |
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Wright International Blue Chip Equities Fund (WIBC) Portfolio of Investments – As of June 30, 2017 |
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 | Shares |  |  | Value |  |
EQUITY INTERESTS - 97.9% |
AUSTRALIA - 5.1% | |||||
Australia & New Zealand Banking Group, Ltd. | 3,845 | Â | $ | 84,704 | Â |
BHP Billiton, Ltd. | 5,272 | Â | Â | 94,142 | Â |
CIMIC Group, Ltd. | 3,165 | Â | Â | 94,292 | Â |
Crown Resorts, Ltd. | 2,731 | Â | Â | 25,724 | Â |
CSL, Ltd. | 1,309 | Â | Â | 138,592 | Â |
Dexus REIT | 7,183 | Â | Â | 52,232 | Â |
Fortescue Metals Group, Ltd. | 11,506 | Â | Â | 46,070 | Â |
 |  |  | $ | 535,756 |  |
CANADA - 12.7% | |||||
Alimentation Couche-Tard, Inc. - Class B | 2,848 | Â | $ | 136,315 | Â |
Canadian National Railway Co. | 951 | Â | Â | 77,050 | Â |
Canadian Tire Corp., Ltd. - Class A | 1,072 | Â | Â | 121,802 | Â |
CCL Industries, Inc. - Class B | 2,935 | Â | Â | 148,276 | Â |
CGI Group, Inc. - Class A* | 3,369 | Â | Â | 171,887 | Â |
Enbridge, Inc. | 482 | Â | Â | 19,173 | Â |
Magna International, Inc. | 1,808 | Â | Â | 83,627 | Â |
Manulife Financial Corp. | 9,461 | Â | Â | 177,098 | Â |
Metro, Inc. | 2,998 | Â | Â | 98,525 | Â |
Open Text Corp. | 1,390 | Â | Â | 43,807 | Â |
Royal Bank of Canada | 774 | Â | Â | 56,118 | Â |
Toronto-Dominion Bank (The) | 3,769 | Â | Â | 189,654 | Â |
 |  |  | $ | 1,323,332 |  |
DENMARK - 0.3% | |||||
Pandora A/S | 289 | Â | $ | 26,933 | Â |
FINLAND - 1.3% | |||||
Sampo OYJ - Class A | 2,584 | Â | $ | 132,240 | Â |
FRANCE - 9.1% | |||||
Airbus SE | 2,635 | Â | $ | 216,385 | Â |
Alstom SA | 1,399 | Â | Â | 48,842 | Â |
AXA SA | 4,174 | Â | Â | 114,017 | Â |
Capgemini SE | 547 | Â | Â | 56,449 | Â |
Orange SA | 2,871 | Â | Â | 45,483 | Â |
Societe Generale SA | 2,048 | Â | Â | 110,042 | Â |
TOTAL SA | 5,267 | Â | Â | 260,025 | Â |
Vivendi SA | 4,460 | Â | Â | 99,143 | Â |
 |  |  | $ | 950,386 |  |
GERMANY - 12.1% | |||||
adidas AG | 280 | Â | $ | 53,572 | Â |
Allianz SE | 655 | Â | Â | 128,793 | Â |
BASF SE | 1,864 | Â | Â | 172,396 | Â |
Bayer AG | 394 | Â | Â | 50,869 | Â |
Bayerische Motoren Werke AG | 371 | �� |  | 34,393 |  |
Continental AG | 280 | Â | Â | 60,342 | Â |
Daimler AG | 347 | Â | Â | 25,080 | Â |
Hannover Rueck SE | 1,121 | Â | Â | 134,185 | Â |
Merck KGaA | 541 | Â | Â | 65,252 | Â |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen - Class R | 1,129 | Â | Â | 227,340 | Â |
SAP SE | 1,120 | Â | Â | 116,820 | Â |
 | Shares |  |  | Value |  |
Siemens AG | 1,291 | Â | $ | 177,209 | Â |
Volkswagen AG | 119 | Â | Â | 18,425 | Â |
 |  |  | $ | 1,264,676 |  |
HONG KONG - 2.8% | |||||
BOC Hong Kong Holdings, Ltd. | 26,500 | Â | $ | 126,789 | Â |
CK Hutchison Holdings, Ltd. | 11,500 | Â | Â | 144,368 | Â |
Henderson Land Development Co., Ltd. | 3,520 | Â | Â | 19,637 | Â |
 |  |  | $ | 290,794 |  |
INDIA - 0.5% | |||||
Infosys, Ltd., ADR | 3,144 | Â | $ | 47,223 | Â |
IRELAND - 2.8% | |||||
AerCap Holdings NV* | 1,695 | Â | $ | 78,699 | Â |
Ryanair Holdings PLC* | 5,850 | Â | Â | 120,100 | Â |
Ryanair Holdings PLC, ADR* | 835 | Â | Â | 89,854 | Â |
 |  |  | $ | 288,653 |  |
ISRAEL - 0.4% | |||||
Taro Pharmaceutical Industries, Ltd.* | 400 | Â | $ | 44,824 | Â |
JAPAN - 20.3% | |||||
Asahi Kasei Corp. | 13,000 | Â | $ | 139,707 | Â |
Central Japan Railway Co. | 841 | Â | Â | 137,048 | Â |
Daito Trust Construction Co., Ltd. | 200 | Â | Â | 31,141 | Â |
Daiwa House Industry Co., Ltd. | 7,226 | Â | Â | 246,826 | Â |
FUJIFILM Holdings Corp. | 700 | Â | Â | 25,169 | Â |
Hitachi High-Technologies Corp. | 700 | Â | Â | 27,163 | Â |
Hitachi Metals, Ltd. | 1,400 | Â | Â | 19,463 | Â |
Hoya Corp. | 1,119 | Â | Â | 58,091 | Â |
ITOCHU Corp. | 15,200 | Â | Â | 225,781 | Â |
KDDI Corp. | 7,600 | Â | Â | 201,228 | Â |
Kose Corp. | 300 | Â | Â | 32,761 | Â |
Mitsubishi Corp. | 2,100 | Â | Â | 44,034 | Â |
Mitsubishi Electric Corp. | 2,500 | Â | Â | 35,945 | Â |
Mitsubishi UFJ Financial Group, Inc. | 6,000 | Â | Â | 40,306 | Â |
Nippon Telegraph & Telephone Corp. | 3,900 | Â | Â | 184,309 | Â |
Nomura Real Estate Holdings, Inc. | 5,200 | Â | Â | 102,001 | Â |
Omron Corp. | 600 | Â | Â | 26,032 | Â |
ORIX Corp. | 3,161 | Â | Â | 48,951 | Â |
Rohm Co. Ltd, | 500 | Â | Â | 38,403 | Â |
Sekisui Chemical Co., Ltd. | 3,100 | Â | Â | 55,483 | Â |
Shimadzu Corp. | 3,200 | Â | Â | 60,890 | Â |
SoftBank Group Corp. | 1,300 | Â | Â | 105,252 | Â |
Subaru Corp. | 500 | Â | Â | 16,848 | Â |
Taisei Corp. | 5,000 | Â | Â | 45,657 | Â |
Tokio Marine Holdings, Inc. | 900 | Â | Â | 37,254 | Â |
Tokyo Electron, Ltd. | 200 | Â | Â | 26,985 | Â |
Toyota Motor Corp. | 1,900 | Â | Â | 99,650 | Â |
 |  |  | $ | 2,112,378 |  |
NETHERLANDS - 1.9% | |||||
ASML Holding NV | 274 | Â | $ | 35,657 | Â |
ING Groep NV | 9,287 | Â | Â | 159,944 | Â |
 |  |  | $ | 195,601 |  |
SOUTH AFRICA - 0.2% | |||||
Foschini Group, Ltd. (The) | 2,376 | Â | $ | 24,894 | Â |
Â
 |  |  |  |  |  |  |  |  |  |  |
 |  |  |  |  |  |  |  |  | ||
 |  |  | Six Months |  | Year Ended |  | ||||
STATEMENTS OF CHANGES IN NET ASSETS | Â | Ended June 30, 2017 | Â | December 31, 2016 | Â | |||||
INCREASE (DECREASE) IN NET ASSETS: | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
 From operations – |  |  |  |  |  |  |  |  |  | |
 | Net investment income |  | $ | 94,228 |  |  | $ | 257,891 |  |  |
-39919 | Net realized gain (loss) on investment and foreign currency transactions | Â | Â | 1,858,773 | Â | Â | Â | (382,347 | ) | Â |
 | Net change in unrealized appreciation (depreciation) on investments and foreign currency translations |  | (762,287 | ) |  |  | (146,885 | ) |  | |
 | Net increase (decrease) in net assets from operations |  | $ | 1,190,714 |  |  | $ | (271,341 | ) |  |
Distributions to shareholders (Note 2) | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
 | From net investment income |  | $ | (33,371 | ) |  | $ | (308,333 | ) |  |
 | Total distributions |  | $ | (33,371 | ) |  | $ | (308,333 | ) |  |
Net decrease in net assets resulting from fund share transactions (Note 6) | Â | $ | (8,075,774 | ) | Â | $ | (7,416,846 | ) | Â | |
Net decrease in net assets | Â | $ | (6,918,431 | ) | Â | $ | (7,996,520 | ) | Â | |
## | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
NET ASSETS: | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
 | At beginning of period |  |  | 17,340,289 |  |  |  | 25,336,809 |  |  |
 | At end of period |  | $ | 10,421,858 |  |  | $ | 17,340,289 |  |  |
 |  |  |  |  |  |  |  |  |  |  |
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD | Â | $ | 1,825 | Â | Â | $ | (59,032 | ) | Â | |
 |  |  |  |  |  |  |  |  |  |  |
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Wright International Blue Chip Equities Fund (WIBC) Â |
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These financial highlights reflect selected data for a share outstanding throughout each period. | Â | Â | Â | Â | Â | Â | ||||||||||||||
 |  | Six Months Ended | Years Ended December 31, | |||||||||||||||||
FINANCIAL HIGHLIGHTS | June 30, 2017 | Â | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net asset value, beginning of period | $ | 14.030 | Â | Â | $ | 14.400 | Â | $ | 14.900 | Â | $ | 16.280 | Â | $ | 14.120 | Â | $ | 12.580 | Â | |
Income (loss) from investment operations: | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
Net investment income (1) | Â | 0.107 | Â | Â | Â | 0.161 | Â | Â | 0.169 | Â | Â | 0.382 | Â | Â | 0.236 | Â | Â | 0.244 | Â | |
Net realized and unrealized gain (loss) | Â | 1.302 | Â | Â | Â | (0.300 | ) | Â | (0.486 | ) | Â | (1.439 | ) | Â | 2.480 | Â | Â | 1.567 | Â | |
 | Total income (loss) from investment operations |  | 1.409 |  |  |  | (0.139 | ) |  | (0.317 | ) |  | (1.057 |  |  | 2.716 |  |  | 1.811 |  |
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | |
Less distributions: | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
From net investment income | Â | (0.049 | ) | Â | Â | (0.231 | ) | Â | (0.185 | ) | Â | (0.323 | ) | Â | (0.556 | ) | Â | (0.272 | ) | |
Redemption Fees(1) |  | — | (2) |  |  | — | (2) |  | 0.002 |  |  | — | (2) |  | — | (2) |  | 0.001 |  | |
# | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
Net asset value, end of period | $ | 15.390 | Â | Â | $ | 14.030 | Â | $ | 14.400 | Â | $ | 14.900 | Â | $ | 16.280 | Â | $ | 14.120 | Â | |
Total Return(3) | Â | 10.06 | %(4) | Â | (0.94 | )% | Â | (2.11 | )% | Â | (6.51 | )% | Â | 19.46 | % | Â | 14.45 | % | ||
Ratios/Supplemental Data(6): | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
Net assets, end of period (000 omitted) | $10,422 | Â | Â | $17,340 | Â | $25,337 | Â | $27,992 | Â | $32,067 | Â | $33,256 | Â | |||||||
Ratios (As a percentage of average daily net assets): | ||||||||||||||||||||
Net expenses | Â | 1.85 | %(5) | 1.85 | % | 1.85 | % | 1.85 | % | 1.85 | % | 1.85 | % | |||||||
Net investment income | Â | 1.46 | %(5) | 1.17 | % | 1.11 | % | 2.37 | % | 1.57 | % | 1.84 | % | |||||||
Portfolio turnover rate | Â | 17 | %(4) | 49 | % | 33 | % | 57 | % | 45 | % | 58 | % | |||||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | |
 |  |  | For the six months ended June 30, 2017, and for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 | For the six months ended June 30, 2017, and for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 |  |  |  |  |  |  |  |  |  | |||||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(1) | Computed using average shares outstanding. | |||||||||||||||||||
(2) | Less than $0.001 per share. | |||||||||||||||||||
(3) | Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date. | |||||||||||||||||||
(4) | Not annualized. | |||||||||||||||||||
(5) | Annualized. | |||||||||||||||||||
(6) | For the periods presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income ratios would have been as follows: | |||||||||||||||||||
 |  | 2017 |  | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||
 |  | |||||||||||||||||||
Ratios (As a percentage of average daily net assets): | Â | |||||||||||||||||||
Expenses | Â | 2.78 | %(5) | Â | 2.23 | % | Â | 2.04 | % | Â | 2.01 | % | Â | 2.01 | % | Â | 2.01 | % | ||
Net investment income | Â | 0.53 | %(5) | Â | 0.79 | % | Â | 0.92 | % | Â | 2.21 | % | Â | 1.41 | % | Â | 1.69 | % | ||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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1. Significant Accounting Policies
Wright Selected Blue Chip Equities Fund ("WSBC"), Wright Major Blue Chip Equities Fund ("WMBC"), and Wright International Blue Chip Equities Fund ("WIBC") (each a "Fund" and collectively, the "Funds") (the Funds constituting The Wright Managed Equity Trust (the "Trust")), are registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as diversified, open-end management investment companies. The Funds seek to provide total return consisting of price appreciation and current income.
The Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board("FASB") Accounting Standards Codification ("ASC") Topic 946, "Financial Services-Investment Companies". The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP").
A. Investment Valuations – Equity securities listed on a U.S. securities exchange generally are valued at the last sale price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and asked prices therefore on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ Global or Global Select Market generally are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and asked prices or, in the case of preferred equity securities that are not listed or traded in the over-the-counter market, by a third party pricing service. Investments in open-end mutual funds are valued at net asset value. Short-term debt securities with a remaining maturity of sixty days or less may be valued at amortized cost, which approximates market value. If short-term debt securities are acquired with a remaining maturity of more than sixty days, they will be valued by a third party pricing service. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by a third party pricing service. The daily valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges are monitored by the investment adviser and may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Funds in a manner that most fairly reflects the security's value, or the amount that the Funds might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security's disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies, quotations or relevant information obtained from broker-dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company's financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B. Investment Transactions – Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.
C. Income – Dividend income is recorded on the ex-dividend date. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Funds are informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Funds' understanding of applicable countries' tax rules and rates. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium and accretion of discount.
D. Federal Taxes – Each Fund's policy is to comply with the provisions of the Internal Revenue Code (the "Code") applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable income and all or substantially all of its net realized capital gains. Accordingly,
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For the period ended June 30, 2017, the fee and the effective annual rate, as a percentage of average daily net assets for each of the Funds were as follows:
Fund | Investment Adviser Fee | Effective Annual Rate |
WSBC | $ 97,541 | 0.60% |
WMBC | $ 36,367 | 0.60% |
WIBC | $ 51,535 | 0.80% |
The administrator fee is earned by Wright for administering the business affairs of each Fund. The fee is computed at an annual rate of 0.17% of WIBC's average daily net assets up to $100 million and 0.07% of average daily net assets over $100 million. The fee is computed at an annual rate of 0.12% of WSBC's and WMBC's average daily net assets up to $100 million and 0.07% of average daily net assets over $100 million. Atlantic Fund Administration, LLC (d/b/a Atlantic Fund Services) ("Atlantic") serves as sub-administrator of the Funds to perform certain services of the administrator as may be agreed upon between the administrator and sub-administrator. The sub-administration fee is paid by Wright.
For the period ended June 30, 2017, the administrator fee for WSBC, WMBC and WIBC amounted to $19,508, $7,273 and $10,951, respectively.
Certain Trustees and officers of the Trust are Trustees or officers of the above organizations and/or of the Funds' principal underwriter. Except as to Trustees of the Trust who are not employees of Atlantic or Wright, Trustees and officers receive remuneration for their services to the Trust out of the fees paid to Atlantic and Wright. The Trustees are compensated by the Trust in conjunction with the Wright Managed Income Trust, rather than on a per Trust or per Fund basis. Quarterly retainer fees are paid in the amount of $4,000 to the Lead Trustee, $3,500 to the Secretary of Independent Trustees, and $3,000 each to the remaining Trustees. In addition, each Trustee will be paid a fee of $1,500 for each regular Board meeting attended. Each Trustee is also reimbursed for all reasonable out-of-pocket expenses incurred in connection with his duties as a Trustee, including travel and related expenses incurred in attending Board meetings. The amount of Trustees' fees attributable to each Fund is disclosed in each Fund's Statement of Operations.
4. Distribution and Service Plans
The Trust has in effect a Distribution Plan (the "Plan") pursuant to Rule 12b-1 of the 1940 Act. The Plan provides that each Fund will pay Wright Investors' Service Distributors, Inc. ("WISDI"), the principal underwriter, a wholly-owned subsidiary of The Winthrop Corporation and an affiliate of Wright, a distribution fee of 0.25% of the average daily net assets of each Fund for distribution services and facilities provided to the Funds by WISDI. Distribution fees paid to WISDI for the period ended June 30, 2017, for WSBC, WMBC and WIBC were $40,642, $15,153 and $16,105, respectively. In addition, the Trustees have adopted a service plan (the "Service Plan") which allows the Funds to reimburse the principal underwriter for payments to intermediaries for providing account administration and personal and account maintenance services to their customers who are beneficial owners of each Fund's shares. The combined amount of service fees payable under the Service Plan and Rule 12b-1 distribution fees may not exceed 0.25% annually of each Fund's average daily net assets. For the period ended June 30, 2017, the Funds did not accrue or pay any service fees.
Pursuant to an Expense Limitation Agreement, Wright and WISDI have agreed to waive all or a portion of their fees and reimburse expenses to the extent that total annual operating expenses exceed 1.40% of the average daily net assets of each of WSBC and WMBC and 1.85% of the average daily net assets of WIBC through April 30, 2018 (excluding interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business). Thereafter, the waiver and reimbursement may be changed or terminated at any time. Pursuant to this agreement, Wright waived and/or reimbursed investment adviser fees and expenses of $31,702 and $43,387 for WMBC and WIBC, respectively. WISDI waived distribution fees of $13,773, $15,153
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The Wright Managed Equity Trust Notes to Financial Statements |
and $16,105 for WSBC, WMBC and WIBC, respectively.
5. Investment Transactions
Purchases and sales of investments, other than short-term obligations, were as follows:
Six Months Ended June 30, 2017 | |||
 | WSBC | WMBC | WIBC |
Purchases | $7,755,337 | $1,805,612 | $2,239,791 |
Sales | $13,250,883 | $2,110,692 | $10,226,953 |
6. Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in Fund shares were as follows:
 |  | December 31, 2017 | 36525 |  |  |  | 42916 | # | # |  |  |  |  | 42735 |  |
 |  |  | Six Months Ended June 30, 2017 |  | Year Ended December 31, 2016 | ||||||||||
 |  |  | Shares |  |  |  | Amount |  |  | Shares |  |  |  | Amount |  |
 | WSBC |  |  |  |  |  |  |  |  |  |  |  |  |  | |
 | Sold | 91,624 |  |  | $ | 1,114,145 |  |  | 744,147 |  |  | $ | 8,152,464 |  | |
 | Issued to shareholders in payment of distributions declared | 45,731 |  |  |  | 554,257 |  |  | 63,181 |  |  |  | 701,757 |  | |
 | Redemptions | (497,344 | ) |  |  | (6,019,251 | ) |  | (1,302,233 | ) |  |  | (14,658,811 | ) | |
 | Net decrease | (359,989 | ) |  | $ | (4,350,849 | ) |  | (494,905 | ) |  | $ | (5,804,590 | ) | |
 |  | December 31, 2017 | 36525 |  |  |  | 42916 | # | # |  |  |  |  | 42735 |  |
 |  |  | Six Months Ended June 30, 2017 |  | Year Ended December 31, 2016 | ||||||||||
 |  |  | Shares |  |  |  | Amount |  |  | Shares |  |  |  | Amount |  |
 | WMBC |  |  |  |  |  |  |  |  |  |  |  |  |  | |
 | Sold | 25,700 |  |  | $ | 495,717 |  |  | 38,375 |  |  | $ | 675,147 |  | |
 | Issued to shareholders in payment of distributions declared | - |  |  |  | - |  |  | 58,106 |  |  |  | 1,004,419 |  | |
 | Redemptions | (42,006 | ) |  |  | (815,645 | ) |  | (162,847 | ) |  |  | (2,867,801 | ) | |
 | Net decrease | (16,306 | ) |  | $ | (319,928 | ) |  | (66,366 | ) |  | $ | (1,188,235 | ) | |
 |  | December 31, 2017 | 36525 |  |  |  | 42916 | # | # |  |  |  |  | 42735 |  |
 |  |  | Six Months Ended June 30, 2017 |  | Year Ended December 31, 2016 | ||||||||||
 |  |  | Shares |  |  |  | Amount |  |  | Shares |  |  |  | Amount |  |
 | WIBC |  |  |  |  |  |  |  |  |  |  |  |  |  | |
 | Sold | 8,702 |  |  | $ | 126,701 |  |  | 130,220 |  |  | $ | 1,726,027 |  | |
 | Issued to shareholders in payment of distributions declared | 2,145 |  |  |  | 31,387 |  |  | 21,453 |  |  |  | 298,088 |  | |
 | Redemptions | (569,560 | ) |  |  | (8,233,884 | ) |  | (675,398 | ) |  |  | (9,441,303 | ) | |
 | Redemption fees | - |  |  |  | 22 |  |  | - |  |  |  | 342 |  | |
 | Net decrease | (558,713 | ) |  | $ | (8,075,774 | ) |  | (523,725 | ) |  | $ | (7,416,846 | ) | |
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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The Wright Managed Equity Trust Notes to Financial Statements |
7. Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of the investment securities owned at June 30, 2017, as computed on a federal income tax basis, were as follows:
Six Months Ended June 30, 2017 | |||||||||
 | WSBC | WMBC | WIBC | ||||||
Aggregate cost | $ | 22,515,225 | Â | $ | 10,518,810 | Â | $ | 7,425,028 | Â |
Gross unrealized appreciation | $ | 8,473,985 | Â | $ | 2,320,623 | Â | $ | 3,004,251 | Â |
Gross unrealized depreciation | Â | (669,346 | ) | Â | (312,930 | ) | Â | (72,085 | ) |
Net unrealized appreciation | $ | 7,804,639 | Â | $ | 2,007,693 | Â | $ | 2,932,166 | Â |
8. Line of Credit
The Funds participate with other funds managed by Wright in a committed $10 million unsecured line of credit agreement with MUFG Union Bank, N.A. ("Union Bank"). The Funds may temporarily borrow from the line of credit to satisfy redemption requests or settle investment transactions. Interest is charged to each Fund based on its borrowings at an amount above the LIBOR rate. Because the line of credit is not available exclusively to each Fund, they may be unable to borrow some or all of the Funds' requested amounts at any particular time. As of June 30, 2017, the Funds had no outstanding balances pursuant to this line of credit.The average borrowings and average interest rate (based on days with outstanding balances) for the period ended June 30, 2017, were as follows:
 | WSBC | WMBC | WIBC |
Average borrowings | $213,690 | $55,501 | $147,187 |
Average interest rate | 1.93% | 1.99% | 1.82% |
9. Risks Associated with Foreign Investments
Investing in securities issued by companies whose principal business activities are outside the United States may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Certain foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of the Funds, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers and issuers than in the United States.
10. Fair Value Measurements
Under GAAP for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
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The Wright Managed Equity Trust Notes to Financial Statements |
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12. Review for Subsequent Events
In connection with the preparation of the financial statements of the Funds as of and for the period ended June 30, 2017, events and transactions subsequent to June 30, 2017, have been evaluated by the Funds' management for possible adjustment and/or disclosure. Management has not identified any subsequent events requiring financial statement disclosure as of the date these financial statements were issued.
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 | Face Amount |  | Description |  | Coupon Rate |  |  | Maturity Date |  |  | Value |  |
FIXED INCOME INVESTMENTS - 95.0% |
AGENCY MORTGAGE-BACKED SECURITIES - 92.0% | |||||||||||||
$ | 121,146 | Â | FHLMC Gold Pool #A37619 | Â | 4.500 | % | Â | Â | 09/01/35 | Â | $ | 130,242 | Â |
 | 194,904 |  | FHLMC Gold Pool #A39555 |  | 5.500 | % |  |  | 11/01/35 |  |  | 219,444 |  |
 | 418,369 |  | FHLMC Gold Pool #A88945 |  | 4.000 | % |  |  | 08/01/39 |  |  | 444,316 |  |
 | 428,271 |  | FHLMC Gold Pool #A92435 |  | 5.000 | % |  |  | 06/01/40 |  |  | 467,280 |  |
 | 17,998 |  | FHLMC Gold Pool #C00778 |  | 7.000 | % |  |  | 06/01/29 |  |  | 20,518 |  |
 | 238,969 |  | FHLMC Gold Pool #C03552 |  | 4.500 | % |  |  | 08/01/40 |  |  | 259,556 |  |
 | 513,295 |  | FHLMC Gold Pool #G05457 |  | 4.500 | % |  |  | 05/01/39 |  |  | 556,426 |  |
 | 266,624 |  | FHLMC Gold Pool #G07025 |  | 5.000 | % |  |  | 02/01/42 |  |  | 291,433 |  |
 | 97,934 |  | FHLMC Gold Pool #G08022 |  | 6.000 | % |  |  | 11/01/34 |  |  | 111,212 |  |
 | 89,488 |  | FHLMC Gold Pool #G08047 |  | 6.000 | % |  |  | 03/01/35 |  |  | 101,477 |  |
 | 505,061 |  | FHLMC Gold Pool #G08378 |  | 6.000 | % |  |  | 10/01/39 |  |  | 568,044 |  |
 | 254,705 |  | FHLMC Gold Pool #G30285 |  | 6.000 | % |  |  | 02/01/26 |  |  | 286,447 |  |
 | 62,148 |  | FHLMC Gold Pool #G80111 |  | 7.300 | % |  |  | 12/17/22 |  |  | 66,436 |  |
 | 7,996 |  | FHLMC Gold Pool #H09098 |  | 6.500 | % |  |  | 10/01/37 |  |  | 8,779 |  |
 | 102,810 |  | FHLMC Gold Pool #P00024 |  | 7.000 | % |  |  | 09/01/32 |  |  | 114,974 |  |
 | 322,644 |  | FHLMC Gold Pool #P50079 |  | 5.000 | % |  |  | 07/01/33 |  |  | 339,502 |  |
 | 174,912 |  | FHLMC Gold Pool #T30126 |  | 5.550 | % |  |  | 07/01/37 |  |  | 193,124 |  |
 | 71,518 |  | FHLMC Gold Pool #T30133 |  | 5.550 | % |  |  | 07/01/37 |  |  | 78,985 |  |
 | 339,040 |  | FHLMC Gold Pool #T60798 |  | 3.500 | % |  |  | 07/01/42 |  |  | 345,565 |  |
 | 192,435 |  | FHLMC Gold Pool #U30400 |  | 5.550 | % |  |  | 06/01/37 |  |  | 212,426 |  |
 | 1,490,045 |  | FHLMC Gold Pool #U80611 |  | 4.500 | % |  |  | 11/01/33 |  |  | 1,628,811 |  |
 | 189,727 |  | FHLMC, Series 2097, Class PZ |  | 6.000 | % |  |  | 11/15/28 |  |  | 215,656 |  |
 | 32,684 |  | FHLMC, Series 2176, Class OJ |  | 7.000 | % |  |  | 08/15/29 |  |  | 37,404 |  |
 | 22,303 |  | FHLMC, Series 2201, Class C |  | 8.000 | % |  |  | 11/15/29 |  |  | 25,704 |  |
 | 88,867 |  | FHLMC, Series 2218, Class ZB |  | 6.000 | % |  |  | 03/15/30 |  |  | 99,659 |  |
 | 21,749 |  | FHLMC, Series 2576, Class HC |  | 5.500 | % |  |  | 03/15/33 |  |  | 24,035 |  |
 | 63,734 |  | FHLMC, Series 2802, Class OH |  | 6.000 | % |  |  | 05/15/34 |  |  | 69,763 |  |
 | 213,156 |  | FHLMC, Series 3033, Class WY |  | 5.500 | % |  |  | 09/15/35 |  |  | 240,311 |  |
 | 79,297 |  | FHLMC, Series 3072, Class DL |  | 6.000 | % |  |  | 02/15/35 |  |  | 86,650 |  |
 | 271,944 |  | FHLMC, Series 3143, Class BC |  | 5.500 | % |  |  | 02/15/36 |  |  | 300,026 |  |
 | 38,464 |  | FHLMC, Series 3255, Class QE |  | 5.500 | % |  |  | 12/15/36 |  |  | 42,936 |  |
 | 356,121 |  | FHLMC, Series 3613, Class HJ |  | 5.500 | % |  |  | 12/15/39 |  |  | 398,430 |  |
 | 260,609 |  | FHLMC, Series 3677, Class PB |  | 4.500 | % |  |  | 05/15/40 |  |  | 278,202 |  |
 | 458,790 |  | FHLMC, Series 3926, Class OP |  | 6.000 | % |  |  | 08/15/25 |  |  | 485,082 |  |
 | 482,974 |  | FHLMC, Series 3960, Class BM |  | 3.000 | % |  |  | 02/15/30 |  |  | 492,483 |  |
 | 131,152 |  | FHLMC, Series 4050, Class NK |  | 4.500 | % |  |  | 09/15/41 |  |  | 140,477 |  |
 | 1,000,000 |  | FHLMC, Series 4299, Class JY |  | 4.000 | % |  |  | 01/15/44 |  |  | 1,118,112 |  |
 | 21,496 |  | FHLMC-GNMA, Series 23, Class KZ |  | 6.500 | % |  |  | 11/25/23 |  |  | 23,453 |  |
 | 183,474 |  | FNMA Pool #252034 |  | 7.000 | % |  |  | 09/01/28 |  |  | 210,817 |  |
 | 15,389 |  | FNMA Pool #252215 |  | 6.000 | % |  |  | 11/01/28 |  |  | 17,360 |  |
 | 176,650 |  | FNMA Pool #256182 |  | 6.000 | % |  |  | 03/01/36 |  |  | 192,470 |  |
 | 19,880 |  | FNMA Pool #256972 |  | 6.000 | % |  |  | 11/01/37 |  |  | 21,306 |  |
 | 100,630 |  | FNMA Pool #257138 |  | 5.000 | % |  |  | 03/01/38 |  |  | 105,554 |  |
 | 42,779 |  | FNMA Pool #594207 |  | 6.500 | % |  |  | 02/01/31 |  |  | 47,873 |  |
 | 165,328 |  | FNMA Pool #687887 |  | 5.500 | % |  |  | 03/01/33 |  |  | 188,576 |  |
 | 280,404 |  | FNMA Pool #694795 |  | 5.500 | % |  |  | 04/01/33 |  |  | 320,080 |  |
 | 94,102 |  | FNMA Pool #724888 |  | 5.500 | % |  |  | 06/01/33 |  |  | 101,968 |  |
 | 127,814 |  | FNMA Pool #735861 |  | 6.500 | % |  |  | 09/01/33 |  |  | 145,586 |  |
 | 209,518 |  | FNMA Pool #745318 |  | 5.000 | % |  |  | 12/01/34 |  |  | 227,454 |  |
 | 78,452 |  | FNMA Pool #801506 |  | 4.750 | % |  |  | 09/01/34 |  |  | 84,833 |  |
 | 84,658 |  | FNMA Pool #813839 |  | 6.000 | % |  |  | 11/01/34 |  |  | 93,568 |  |
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See Notes to Financial Statements. | 29 | Â |
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Wright Current Income Fund (WCIF) Portfolio of Investments – As of June 30, 2017 |
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 | Face Amount |  | Description |  | Coupon Rate |  |  | Maturity Date |  |  | Value |  |
$ | 44,671 | Â | FNMA Pool #819230 | Â | 5.350 | % | Â | Â | 02/01/35 | Â | $ | 50,414 | Â |
 | 363,608 |  | FNMA Pool #819457 |  | 4.750 | % |  |  | 02/01/35 |  |  | 394,189 |  |
 | 955,328 |  | FNMA Pool #821082 |  | 6.000 | % |  |  | 03/01/35 |  |  | 1,049,027 |  |
 | 154,873 |  | FNMA Pool #831927 |  | 6.000 | % |  |  | 12/01/36 |  |  | 176,210 |  |
 | 90,265 |  | FNMA Pool #833303 |  | 5.150 | % |  |  | 05/01/35 |  |  | 101,663 |  |
 | 451,043 |  | FNMA Pool #846323 |  | 4.250 | % |  |  | 11/01/35 |  |  | 479,341 |  |
 | 452,983 |  | FNMA Pool #851762 |  | 4.250 | % |  |  | 01/01/36 |  |  | 482,078 |  |
 | 235,055 |  | FNMA Pool #852504 |  | 5.350 | % |  |  | 09/01/35 |  |  | 262,374 |  |
 | 26,989 |  | FNMA Pool #878502 |  | 5.350 | % |  |  | 12/01/35 |  |  | 30,456 |  |
 | 420,080 |  | FNMA Pool #883281 |  | 7.000 | % |  |  | 07/01/36 |  |  | 489,449 |  |
 | 28,020 |  | FNMA Pool #888534 |  | 5.000 | % |  |  | 08/01/37 |  |  | 29,383 |  |
 | 472,217 |  | FNMA Pool #891367 |  | 4.750 | % |  |  | 04/01/36 |  |  | 513,110 |  |
 | 154,997 |  | FNMA Pool #895567 |  | 5.450 | % |  |  | 04/01/36 |  |  | 175,988 |  |
 | 571,715 |  | FNMA Pool #896838 |  | 5.450 | % |  |  | 07/01/36 |  |  | 637,679 |  |
 | 541,293 |  | FNMA Pool #899651 |  | 6.500 | % |  |  | 08/01/37 |  |  | 618,431 |  |
 | 8,815 |  | FNMA Pool #908160 |  | 5.500 | % |  |  | 12/01/36 |  |  | 8,984 |  |
 | 106,602 |  | FNMA Pool #930504 |  | 5.000 | % |  |  | 02/01/39 |  |  | 115,431 |  |
 | 42,829 |  | FNMA Pool #930664 |  | 6.500 | % |  |  | 03/01/39 |  |  | 49,727 |  |
 | 405,049 |  | FNMA Pool #940441 |  | 5.780 | % |  |  | 03/01/37 |  |  | 455,562 |  |
 | 136,166 |  | FNMA Pool #954633 |  | 5.500 | % |  |  | 02/01/37 |  |  | 149,678 |  |
 | 15,309 |  | FNMA Pool #954957 |  | 6.000 | % |  |  | 10/01/37 |  |  | 16,332 |  |
 | 137,579 |  | FNMA Pool #995656 |  | 7.000 | % |  |  | 06/01/33 |  |  | 162,212 |  |
 | 386,553 |  | FNMA Pool #AB2693 |  | 4.500 | % |  |  | 04/01/41 |  |  | 419,428 |  |
 | 256,876 |  | FNMA Pool #AC5445 |  | 5.000 | % |  |  | 11/01/39 |  |  | 283,588 |  |
 | 358,193 |  | FNMA Pool #AC9581 |  | 5.500 | % |  |  | 01/01/40 |  |  | 402,370 |  |
 | 218,554 |  | FNMA Pool #AL6860 |  | 4.500 | % |  |  | 03/01/44 |  |  | 239,192 |  |
 | 217,290 |  | FNMA Pool #AM4671 |  | 5.320 | % |  |  | 10/01/43 |  |  | 261,102 |  |
 | 808,936 |  | FNMA Pool #AM5015 |  | 4.940 | % |  |  | 12/01/43 |  |  | 930,185 |  |
 | 168,324 |  | FNMA Pool #AS5235 |  | 3.500 | % |  |  | 06/01/45 |  |  | 174,173 |  |
 | 142,206 |  | FNMA Whole Loan, Series 2003-W17, Class 1A7 |  | 5.750 | % |  |  | 08/25/33 |  |  | 159,620 |  |
 | 221,899 |  | FNMA Whole Loan, Series 2004-W11, Class 1A1 |  | 6.000 | % |  |  | 05/25/44 |  |  | 253,190 |  |
 | 122,018 |  | FNMA, Series 2001-52, Class XZ |  | 6.500 | % |  |  | 10/25/31 |  |  | 140,281 |  |
 | 1,778,630 |  | FNMA, Series 2003-18, Class XD |  | 5.000 | % |  |  | 03/25/33 |  |  | 1,914,826 |  |
 | 43,028 |  | FNMA, Series 2003-30, Class JQ |  | 5.500 | % |  |  | 04/25/33 |  |  | 47,370 |  |
 | 218,971 |  | FNMA, Series 2003-32, Class BZ |  | 6.000 | % |  |  | 11/25/32 |  |  | 247,252 |  |
 | 153,458 |  | FNMA, Series 2004-17, Class H |  | 5.500 | % |  |  | 04/25/34 |  |  | 171,428 |  |
 | 261,251 |  | FNMA, Series 2004-18, Class EZ |  | 6.000 | % |  |  | 04/25/34 |  |  | 292,675 |  |
 | 96,559 |  | FNMA, Series 2005-106, Class UK |  | 5.500 | % |  |  | 12/25/35 |  |  | 99,292 |  |
 | 172,000 |  | FNMA, Series 2005-120, Class PB |  | 6.000 | % |  |  | 01/25/36 |  |  | 205,951 |  |
 | 98,743 |  | FNMA, Series 2005-58, Class BC |  | 5.500 | % |  |  | 07/25/25 |  |  | 108,184 |  |
 | 575,887 |  | FNMA, Series 2006-24, Class Z |  | 5.500 | % |  |  | 04/25/36 |  |  | 645,643 |  |
 | 174,180 |  | FNMA, Series 2007-71, Class GB |  | 6.000 | % |  |  | 07/25/37 |  |  | 196,215 |  |
 | 159,724 |  | FNMA, Series 2007-76, Class PE |  | 6.000 | % |  |  | 08/25/37 |  |  | 181,251 |  |
 | 375,702 |  | FNMA, Series 2007-81, Class GE |  | 6.000 | % |  |  | 08/25/37 |  |  | 412,146 |  |
 | 429,950 |  | FNMA, Series 2008-60, Class JC |  | 5.000 | % |  |  | 07/25/38 |  |  | 470,336 |  |
 | 150,000 |  | FNMA, Series 2009-50, Class AX |  | 5.000 | % |  |  | 07/25/39 |  |  | 172,889 |  |
 | 290,000 |  | FNMA, Series 2010-136, Class CY |  | 4.000 | % |  |  | 12/25/40 |  |  | 312,298 |  |
 | 651,423 |  | FNMA, Series 2012-133, Class PB |  | 6.500 | % |  |  | 04/25/42 |  |  | 741,196 |  |
 | 101,294 |  | FNMA, Series 2012-51, Class B |  | 7.000 | % |  |  | 05/25/42 |  |  | 115,997 |  |
 | 568,626 |  | FNMA, Series 2013-17, Class YM |  | 4.000 | % |  |  | 03/25/33 |  |  | 606,209 |  |
 | 71,162 |  | FNMA, Series G93-5, Class Z |  | 6.500 | % |  |  | 02/25/23 |  |  | 76,421 |  |
 | 50 |  | GNMA I Pool #602377 |  | 4.500 | % |  |  | 06/15/18 |  |  | 50 |  |
 | 245 |  | GNMA I Pool #603377 |  | 4.500 | % |  |  | 01/15/18 |  |  | 247 |  |
 | 159,376 |  | GNMA I Pool #615272 |  | 4.500 | % |  |  | 07/15/33 |  |  | 174,826 |  |
 | 109,181 |  | GNMA I Pool #626755 |  | 5.000 | % |  |  | 03/15/35 |  |  | 120,566 |  |
 | 142,787 |  | GNMA I Pool #644970 |  | 5.000 | % |  |  | 06/15/35 |  |  | 156,968 |  |
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These financial highlights reflect selected data for a share outstanding throughout each period. | Â | Â | Â | Â | Â | Â | ||||||||||||||
 |  | Six Months Ended | Years Ended December 31, | |||||||||||||||||
FINANCIAL HIGHLIGHTS | June 30, 2017 | Â | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net asset value, beginning of period | $ | 9.050 | Â | Â | $ | 9.300 | Â | $ | 9.500 | Â | $ | 9.440 | Â | $ | 10.010 | Â | $ | 10.100 | Â | |
Income (loss) from investment operations: | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
Net investment income (1) | Â | 0.148 | Â | Â | Â | 0.154 | Â | Â | 0.195 | Â | Â | 0.225 | Â | Â | 0.173 | Â | Â | 0.225 | Â | |
Net realized and unrealized gain (loss) | Â | (0.056 | ) | Â | Â | (0.081 | ) | Â | (0.060 | ) | Â | 0.188 | Â | Â | (0.365 | ) | Â | 0.081 | Â | |
 | Total income (loss) from investment operations |  | 0.092 |  |  |  | 0.073 |  |  | 0.135 |  |  | 0.413 |  |  | (0.192 | ) |  | 0.306 |  |
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | |
Less distributions: | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
From net investment income | Â | (0.162 | ) | Â | Â | (0.323 | ) | Â | (0.335 | ) | Â | (0.353 | ) | Â | (0.378 | ) | Â | (0.396 | ) | |
Net asset value, end of period | $ | 8.980 | Â | Â | $ | 9.050 | Â | $ | 9.300 | Â | $ | 9.500 | Â | $ | 9.440 | Â | $ | 10.010 | Â | |
Total Return(2) | Â | 1.02 | %(3) | Â | 0.73 | % | Â | 1.41 | % | Â | 4.44 | % | Â | (1.95 | )% | Â | 3.06 | % | ||
Ratios/Supplemental Data(5): | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |
Net assets, end of period (000 omitted) | $51,564 | Â | Â | $58,705 | Â | $66,823 | Â | $65,954 | Â | $59,377 | Â | $79,454 | Â | |||||||
Ratios (As a percentage of average daily net assets): | ||||||||||||||||||||
Net expenses | Â | 0.90 | %(4) | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | |||||||
Net investment income | Â | 3.31 | %(4) | 1.65 | % | 2.05 | % | 2.37 | % | 1.77 | % | 2.23 | % | |||||||
Portfolio turnover rate | Â | 1 | %(3) | 34 | % | 35 | % | 27 | % | 39 | % | 27 | % | |||||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | |
 |  |  | For the six months ended June 30, 2017, and for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 | For the six months ended June 30, 2017, and for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 |  |  |  |  |  |  |  |  |  | |||||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(1) | Computed using average shares outstanding. | |||||||||||||||||||
(2) | Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date. | |||||||||||||||||||
(3) | Not annualized. | |||||||||||||||||||
(4) | Annualized. | |||||||||||||||||||
(5) | For each of the periods presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income ratios would have been as follows: | |||||||||||||||||||
 |  | 2017 |  | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||
 |  | |||||||||||||||||||
Ratios (As a percentage of average daily net assets): | Â | |||||||||||||||||||
Expenses | Â | 1.22 | %(4) | Â | 1.14 | % | Â | 1.18 | % | Â | 1.24 | % | Â | 1.16 | % | Â | 1.16 | % | ||
Net investment income | Â | 2.99 | %(4) | Â | 1.41 | % | Â | 1.77 | % | Â | 2.03 | % | Â | 1.51 | % | Â | 1.97 | % | ||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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1. Significant Accounting Policies
Wright Current Income Fund ("WCIF") (the "Fund") is a diversified portfolio of The Wright Managed Income Trust (the "Trust"), an open-end, management investment company that is registered under the Investment Company Act of 1940, as amended (the "1940 Act"). WCIF seeks a high level of current income consistent with moderate fluctuations of principal.
The Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board("FASB") Accounting Standards Codification ("ASC") Topic 946, "Financial Services-Investment Companies". The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP").
A. Investment Valuations – Debt obligations, including listed securities and securities for which quotations are readily available, will normally be valued on the basis of reported trades or market quotations provided by third party pricing services, when these prices are representative of the securities' market values. For debt securities where market quotations are not readily available, the pricing services will use various techniques that consider factors including, but not limited to, prices or yields of securities with similar characteristics, benchmark yields, broker/dealer quotes, issuer spreads, as well as industry and economic events. Short-term debt securities with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. If short-term debt securities are acquired with a remaining maturity of more than sixty days, they will be valued by a pricing service as described above. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Fund in a manner that most fairly reflects the security's value, or the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security's disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies, quotations or relevant information obtained from broker-dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company's financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B. Investment Transactions – Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.
C. Income – Dividend income is recorded on the ex-dividend date. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium and accretion of discount.
Paydown gains and losses are included in interest income.
D. Federal Taxes – The Fund's policy is to comply with the provisions of the Internal Revenue Code (the "Code") applicable to regulated investment companies and to distribute to shareholders each year substantially all of its net investment income and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. At December 31, 2016, WCIF, for federal income tax purposes, had $2,521,549 available short term capital loss carryforwards and $2,373,580 available long term capital loss carryforwards that have no expiration date which will reduce the Fund's taxable income arising from future net realized gain on investment transactions, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders, which would otherwise be necessary to relieve the Fund of any liability for federal income or excise tax.
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As of June 30, 2017, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund's federal tax returns filed in the 3-year period ended December 31, 2016, remain subject to examination by the Internal Revenue Service.
E. Expenses – The majority of expenses of the Trust are directly identifiable to the Fund. Expenses which are not readily identifiable to a specific Fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the Funds.
F. Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
G. Indemnifications – Under the Fund's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Fund, and shareholders are indemnified against personal liability for the obligations of the Fund. Additionally, in the normal course of business, the Fund enters into agreements with service providers that may contain indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
H. Interim Financial Statements – The interim financial statements relating to June 30, 2017, and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of Fund management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
2. Distributions to Shareholders
The net investment income of the Fund is determined daily, and substantially all of the net investment income so determined is declared daily as a dividend to shareholders of record at the time of declaration. Distributions are generally paid monthly. Distributions of net realized capital gains (reduced by available capital loss carryforwards from prior years, if any) are made at least annually. Shareholders may reinvest income and capital gain distributions in additional shares of the same Fund at the net asset value as of the reinvestment date or, at the election of the shareholder, receive distributions in cash. The Fund distinguishes between distributions on a tax basis and a financial reporting basis. GAAP requires that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital.
As of December 31, 2016, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
 |  |  | WCIF |  |
Capital loss carryforward | Â | $ | (4,895,129 | ) |
Unrealized (depreciation) | Â | Â | (558,520 | ) |
Total | Â | $ | (5,453,649 | ) |
The difference between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to premium amortization and paydown gain (loss).
3. Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Wright Investor Services, Inc. ("Wright") as compensation for investment advisory services rendered to the Fund. The fees are computed at annual rates of the Fund's average daily net assets as noted below, and are payable monthly.
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Annual Advisory Fee Rates | |||||
Fund | Under $100 Million | $100 Million to $250 Million | $250 Million to $500 Million | $500 Million to $1 Billion | Over $1 Billion |
WCIF | 0.45% | 0.44% | 0.42% | 0.40% | 0.35% |
For the period ended June 30, 2017, the fee and the effective annual rate, as a percentage of average daily net assets for the Fund was as follows:
Fund | Investment Adviser Fee | Effective Annual Rate |
WCIF | $121,893 | 0.45% |
The administrator fee is earned by Wright for administering the business affairs of the Fund. The fee is computed at an annual rate of 0.09% of the average daily net assets up to $100 million for WCIF, and 0.05% of average daily net assets over $100 million. Atlantic Fund Administration, LLC (d/b/a Atlantic Fund Services) ("Atlantic") serves as sub-administrator of the Fund to perform certain services of the administrator as may be agreed upon between the administrator and sub-administrator. The sub-administration fee is paid by Wright.
For the period ended June 30, 2017, the administrator fee for WCIF amounted to $24,379.
Certain Trustees and officers of the Trust are Trustees or officers of the above organizations and/or of the Fund's principal underwriter. Except as to Trustees of the Trust who are not employees of Atlantic or Wright, Trustees and officers receive remuneration for their services to the Trust out of the fees paid to Atlantic and Wright. The Trustees are compensated by the Trust in conjunction with the Wright Managed Equity Trust, rather than on a per Trust or per Fund basis. Quarterly retainer fees are paid in the amount of $4,000 to the Lead Trustee, $3,500 to the Secretary of Independent Trustees, and $3,000 each to the remaining Trustees. In addition, each Trustee will be paid a fee of $1,500 for each regular Board meeting attended. Each Trustee is also reimbursed for all reasonable out-of-pocket expenses incurred in connection with his duties as a Trustee, including travel and related expenses incurred in attending Board meetings. The amount of Trustees' fees attributable to the Fund is disclosed in the Fund's Statement of Operations.
4. Distribution and Service Plans
The Trust has in effect a Distribution Plan (the "Plan") pursuant to Rule 12b-1 of the 1940 Act. The Plan provides that the Fund will pay Wright Investors' Service Distributors, Inc. ("WISDI"), the principal underwriter, a wholly-owned subsidiary of The Winthrop Corporation and an affiliate of Wright, a distribution fee of 0.25% of the average daily net assets of the Fund for distribution services and facilities provided to the Fund by WISDI. Distribution fees paid or accrued to WISDI for the period ended June 30, 2017, for WCIF were $67,718.
In addition, the Trustees have adopted a service plan (the "Service Plan") which allows the Fund 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 the Fund's shares. The combined amount of service fees payable under the Service Plan and Rule 12b-1 distribution fees may not exceed 0.25% annually of the Fund's average daily net assets. For the period ended June 30, 2017, the Fund did not accrue or pay any service fees.
Pursuant to an Expense Limitation Agreement, Wright and WISDI have agreed to waive all or a portion of their fees and reimburse expenses to the extent that total annual operating expenses exceed 1.00% of the average daily net assets of WCIF, through April 30, 2018 (excluding interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business). Thereafter, the waiver and reimbursement may be changed or terminated at any time. In addition, Wright and WISDI have voluntarily agreed to further limit the total annual expenses of WCIF to 0.90% of its average daily net assets. Such voluntary limitation may be
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terminated at any time. Pursuant to these agreements and voluntary limitation, Wright waived and/or reimbursed investment adviser fees of $18,132 for WCIF. WISDI waived distribution fees of $67,718 for WCIF.
5. Investment Transactions
Purchases and sales (including maturities and paydowns) of investments, other than short-term obligations, were as follows:
Six Months Ended June 30, 2017 | |
 | WCIF |
Purchases - | Â |
Non-U.S. Government & Agency Obligations | $ - |
U.S. Government & Agency Obligations | 731,083 |
Sales - | Â |
Non-U.S. Government & Agency Obligations | $ 38,000 |
U.S. Government & Agency Obligations | 8,172,639 |
6. Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in Fund shares were as follows:
 |  | December 31, 2017 | 36525 |  |  |  | 42916 | # | # |  |  |  |  | 42735 |  |
 |  |  | Six Months Ended June 30, 2017 |  | Year Ended December 31, 2016 | ||||||||||
 |  |  | Shares |  |  |  | Amount |  |  | Shares |  |  |  | Amount |  |
 | WCIF |  |  |  |  |  |  |  |  |  |  |  |  |  | |
 | Sold | 429,064 |  |  | $ | 3,874,714 |  |  | 1,648,494 |  |  | $ | 15,446,094 |  | |
 | Issued to shareholders in payment of distributions declared | 40,944 |  |  |  | 369,329 |  |  | 96,715 |  |  |  | 903,089 |  | |
 | Redemptions | (1,211,106 | ) |  |  | (10,934,058 | ) |  | (2,447,720 | ) |  |  | (22,741,935 | ) | |
 | Net decrease | (741,098 | ) |  | $ | (6,690,015 | ) |  | (702,511 | ) |  | $ | (6,392,752 | ) | |
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
7. Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of the investment securities owned at June 30, 2017, as computed on a federal income tax basis, were as follows:
 | Six Months Ended June 30, 2017 | |||
 | WCIF |  | ||
Aggregate cost | $ | 51,423,059 | Â | Â |
Gross unrealized appreciation | $ | 444,729 | Â | Â |
Gross unrealized depreciation | Â | (414,207 | ) | Â |
Net unrealized depreciation | $ | 30,522 | Â | Â |
8. Line of Credit
The Fund participates with other funds managed by Wright in a committed $10 million unsecured line of credit agreement with Union Bank of California, N.A. ("Union Bank"). The Fund may temporarily borrow from the line
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of credit to satisfy redemption requests or settle investment transactions. Interest is charged to the Fund based on its borrowings at an amount above the LIBOR rate. Because the line of credit is not available exclusively to the Fund, it may be unable to borrow some or all of the Fund's requested amounts at any particular time. As of June 30, 2017, the Fund had no outstanding balance pursuant to this line of credit.The average borrowings and average interest rate (based on days with outstanding balances) for the period ended June 30, 2017, were as follows:
 | WCIF |
Average borrowings | $405,608 |
Average interest rate | 1.78% |
9. Fair Value Measurements
Under GAAP for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – significant unobservable inputs (including a fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At June 30, 2017, the inputs used in valuing the Fund's investments, which are carried at value, were as follows:
WCIF Asset Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Â Significant Other Observable Inputs (Level 2) | Â Significant Unobservable Inputs (Level 3) | Total | ||||
Agency Mortgage-Backed Securities | Â $ | Â - | Â $ | Â 47,425,997 | Â $ | Â - | Â $ | Â 47,425,997 |
Other U.S. Government Guaranteed | Â | Â - | Â | Â 1,579,383 | Â | Â - | Â | Â 1,579,383 |
Short-Term Investments | Â | - | Â | 2,448,201 | Â | - | Â | 2,448,201 |
Total Investments | $ | - | $ | 51,453,581 | $ | - | $ | 51,453,581 |
The level classification by major category of investments is the same as the category presentation in the Fund's Portfolio of Investments.
There were no transfers among Level 1, Level 2 and Level 3 for the period ended June 30, 2017.
10. New Accounting Pronouncement
In October 2016, the U.S. Securities and Exchange Commission ("SEC") issued a new rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized enhanced disclosures, particularly related to derivatives, in investment company financial statements. The compliance date for the amendments to Regulation S-X is for reporting periods ending after
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August 1, 2017. Management has reviewed the requirements and believes the adoption of the amendments to Regulation S-X will not have a material impact on the Fund's financial statements and related disclosures.
11. Review for Subsequent Events
In connection with the preparation of the financial statements of the Fund as of and for the period ended June 30, 2017, events and transactions subsequent to June 30, 2017, have been evaluated by the Fund's management for possible adjustment and/or disclosure. Management has not identified any subsequent events requiring financial statement disclosure as of the date these financial statements were issued.
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Board of Trustees
Annual Approval of the Investment Advisory Agreement
The investment advisory agreement between Wright Managed Equity Trust and Wright Managed Income Trust (the "Trusts"), on behalf of the series of the Trusts (the "Funds"), and Wright Investors' Service, Inc. ("Wright") must be renewed at least annually by the vote of the Trustees, including a majority of the Trustees who are not parties to the agreement or "interested persons" of any party thereto (the "Independent Trustees").
In March 2017 (the "March Meeting"), the Independent Trustees and the interested Trustee (together, the "Board") met in person joined by representatives of Wright and others to give consideration to information bearing on the approval of the investment advisory agreement between the Trusts, on behalf of each Fund, and Wright. The Independent Trustees and independent legal counsel to the Independent Trustees ("Independent Legal Counsel") also met separately from the interested Trustee, representatives of Wright, and others in order to further consider such information. A description of the conclusion of the Board in approving the investment advisory agreement follows.
The Board was presented with a wide range of information to assist in their deliberations. These materials included comparative performance of each Fund with appropriate benchmarks, including the average return within the applicable Morningstar category. The comparative performance for each Fund was presented for all periods available as of the end of the calendar year and for compound annual rates for various cumulative periods ended December 31, 2016. The materials also included comparative investment advisory fees and expenses of each Fund, both before and after any fee waivers or expense limitations, with an appropriate peer group of funds.
The materials also included a copy of the proposed investment advisory agreements and other information regarding the fee arrangement, including the structure of the investment advisory fee, the method of computing that fee, the expense limitations in place, potential economies of scale resulting from increases in the size of each Fund, and the extent to which it could later be appropriate for some portion of the benefit of these economies of scale to be shared with each Fund's shareholders. The Independent Trustees also received a memorandum from Independent Legal Counsel concerning their responsibilities with respect to the approval of the investment advisory agreement.
The Board was also presented information concerning the following:
· | the terms of the proposed investment advisory agreement, including the fees payable under the agreement, and expense limitations for each Fund; |
· | the manner in which each Fund's shares would be distributed and the presence of a distribution fee that could be paid by the Fund; |
· | the nature and extent of the services to be provided by Wright, including information about the investment strategies and policies of the Funds; |
· | the personnel of Wright responsible for managing each Fund; |
· | the compliance program of Wright; |
· | the financial condition and stability of Wright; |
· | the potential for Wright to derive benefits that are ancillary to serving as an investment adviser to the Funds; and |
· | the profitability of Wright from the advisory fee to be paid by each Fund. |
At the March Meeting, the Board reviewed, considered and discussed, among themselves and with Wright, and separately with Independent Legal Counsel, among other things, the information described above. The Trustees also considered the overall reputation, capabilities, and commitment of Wright to provide high-quality service to the Funds.
 | 42 |  |
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After full consideration of the factors discussed above, the Board, including the Independent Trustees, unanimously approved the investment advisory agreement. In making its approval, the Board concluded that the nature, extent and quality of services provided by Wright supported the renewal of the agreement. The Board also concluded that the investment performance of each Fund was such that the agreement should continue. In addition, the Board concluded that fees paid by a Fund to Wright appeared to be acceptable in light of the nature, extent and quality of the services provided by Wright. Further, the Board concluded that Wright's profitability in providing services under the investment advisory agreement did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Wright. Finally, the Board concluded that the investment advisory agreement in some measure shares economies of scale with shareholders. In approving the renewal of the investment advisory agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and generally attributed different weights to various factors for the various Funds.
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 | 43 |  |
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The Wright Managed Blue Chip Investment Funds
Wright Investors' Service, Inc.
Wright Investors' Service Distributors, Inc.
Important Notice Regarding Delivery of Shareholders Documents
The Securities and Exchange Commission (the "SEC") permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called "householding" and it helps eliminate duplicate mailings to shareholders.
Wright, or your financial adviser, may household the mailing of your documents indefinitely unless you instruct Wright, or your financial adviser, otherwise.
If you would prefer that your Wright documents not be householded, please contact Wright at (800) 555-0644, or your financial adviser.
Your instructions that householding not apply to delivery of your Wright documents will be effective within 30 days of receipt by Wright or your financial adviser.
Portfolio Holdings
In accordance with rules established by the SEC, the Funds send semi-annual and annual reports to shareholders that contain a complete list of portfolio holdings as of the end of the second and fourth quarters, respectively, within 60 days of quarter-end and after filing with the SEC. The Funds also disclose complete portfolio holdings as of the end of the first and third fiscal quarters on Form N-Q, which is filed with the SEC within 60 days of quarter-end. The Funds' complete portfolio holdings as reported in annual and semi-annual reports and on Form N-Q are available for viewing on the SEC website at http://www.sec.gov and may be reviewed and copied at the SEC's public reference room (information on the operation and terms of usage of the SEC public reference room is available at http://sec.gov/info/edgar/prrules.htm or by calling (800) SEC-0330). After filing, the Funds' portfolio holdings as reported in annual and semi-annual reports are also available on Wright's website at www.wrightinvestors.com and are available upon request at no additional cost by contacting Wright at (800) 555-0644.
Proxy Voting Policies and Procedures
From time to time funds are required to vote proxies related to the securities held by the funds. The Wright Managed Blue Chip Investment Funds vote proxies according to a set of policies and procedures approved by the Funds' Board. You may obtain a description of these policies and procedures and information on how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 without charge, upon request, by calling (800) 555-0644. This description is also available on the SEC website at http://www.sec.gov.
 | 44 |  |
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ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) | Included as part of report to stockholders under Item 1. |
(b) | Not applicable. |
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which a Fund's shareholder may recommend nominees to the registrant's board of Trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A(17 CFR240 14a-101), or this item.
ITEM 11. CONTROLS AND PROCEDURES
(a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified to the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
ITEM 12. EXHIBITS.
(a)(1) Not applicable
(a)(2) Certifications pursuant to Rule 30a-2(a) of the Act, and Section 302 of the Sarbanes-Oxley Act of 2002. (Exhibits filed herewith)
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) of the Act, and Section 906 of the Sarbanes-Oxley Act of 2002. (Exhibit filed herewith)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant The Wright Managed Equity Trust (On behalf of Wright Selected Blue Chip Equities Fund, Wright Major Blue Chip Equities Fund and Wright International Blue Chip Equities Fund)
By | Â | /s/ Peter M. Donovan |
 |  | Peter M. Donovan |
 |  | President |
 |  |  |
Date | Â | August 18, 2017 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By | Â | /s/ Peter M. Donovan |
 |  | Peter M. Donovan |
 |  | President |
 |  |  |
Date | Â | August 18, 2017 |
By | Â | /s/ Michael J. McKeen |
 |  | Michael J. McKeen |
 |  | Treasurer |
 |  |  |
Date | Â | August 18, 2017 |