As filed with the Securities and Exchange Commission on August 11, 2015
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-3668
THE WRIGHT MANAGED INCOME TRUST
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, 2015 – June 30, 2015
ITEM 1. REPORT TO STOCKHOLDERS.
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 37,000 global companies (covering 69 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-$10 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.
(continued on inside back cover)
.
| Investment Objectives | inside front |
| Letters 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 Holdins and Proxy Voting | 44 |
| The Wright Managed Equity Trust | | | The Wright Managed Income Trust | |
| | | | | |
| Wright Selected Blue Chip Equities Fund | | | Wright Current Income Fund | |
| Portfolio of Investments | 6 | | Portfolio of Investments | 28 |
| Statement of Assets and Liabilities | 8 | | Statement of Assets and Liabilities | 33 |
| Statements of Operations | 8 | | Statement of Operations | 33 |
| Statements of Changes in Net Assets | 9 | | Statments of Changes in Net Assets | 34 |
| Financial Highlights | 10 | | Financial Highlights | 35 |
| | | | | |
| Wright Major Blue Chip Equities Fund | | | Notes to Financial Statements | 36 |
| Portfolio of Investments | 11 | | | |
| Statements of Assets and Liabilities | 12 | | | |
| Statment of Operations | 12 | | | |
| Statements of Changes in Net Assets | 13 | | | |
| Financial Highlights | 14 | | | |
| | | | | |
| Wright International Blue Chip Equities Fund | | | | |
| Portfolio of Investments | 15 | | | |
| Statement of Assets and Liabilities | 17 | | | |
| Statement of Operations | 17 | | | |
| Statements of Changes in Net Assets | 18 | | | |
| Financial Highlights | 19 | | | |
| | | | | |
| Notes to Financial Statements | 20 | | | |
| | | | | |
| | | | | |
Dear Shareholder:
SUMMARY: The second quarter was a difficult period for investors, both in equities and fixed-income instruments, the U.S. and abroad. The major U.S. stock indexes closed mixed, with the S&P 500 returning 0.3% while the Dow Jones Industrial Average fell by that much. NASDAQ did better, returning 2.0%. Yet U.S. stocks largely outperformed their foreign counterparts, as European markets were roiled by Greece’s debt default and Chinese stocks were in severe correction mode. Bonds recorded their first negative quarter since the end of 2013. Adding to the uneasiness, investors now generally expect the Federal Reserve to being raising interest rates later this year, possibly as early as September, as the U.S. economy shows modest improvement, although events abroad may force it to forestall that action until later.
U.S. stocks closed mixed for the second quarter after losing ground in June, leaving the S&P 500 modestly positive and the Dow Jones Industrial Average unchanged for the year. Both the Dow and S&P 500 fell about 2% in June, with the S&P gaining 0.3% for the quarter and the Dow off by that much. Year to date, the S&P is up 1.2% while the Dow is unchanged. But NASDAQ managed a 2.0% gain for Q2, closing the quarter just 3.3% below its all-time high of 5160 and up 5.9% so far this year.
Foreign markets fared even worse as Greece defaulted on a loan payment to the IMF and the sell-off in Chinese stocks accelerated. The broad-based Stoxx Europe 600 fell 4.6% in local currency in June, leading to a 4% decline for the quarter. Other major European indexes were also down on the order of 4% for the month. The Shanghai composite index ended the second quarter with a 14% gain (32% YTD) but has been in virtual freefall since mid-June, falling 17%, as investors take profits. Including the first three days of July, the index is down nearly 30% off its recent highs.
Bonds also had a difficult Q2, recording their first negative quarter since the end of 2013. The Barclays U.S. Bond Market Aggregate fell 1.1% in June, dragging its quarterly return down to a negative 1.7% and pushing it into the red for the year. Euro zone sovereign bonds did even worse, losing nearly 6%, their worst performance since at least 1985.
The main force driving down the markets, in addition to the Greek debacle, has been the specter of the first interest rate increases by the Federal Reserve in eight years. Based on recent Fed communications, the consensus forecast is for a small (25 basis point) increase later in the year, possibly September, followed by another one before year end. Any rate increase, however, is highly contingent on the performance of the U.S. economy, which has shown signs of growing, if unevenly, following a weak first quarter.
On the consumer front, spending and confidence have snapped back sharply. May retail sales jumped 1.2% while the previous two months were revised upward. Consumer spending, a broader category than retail sales, climbed 0.9% in May, the biggest increase since August 2009. A big part of the increase was fueled by a 0.5% rise in personal incomes in both April and May, the best two-month increase in over a year. Not surprisingly, consumer confidence indicators are on the rise. The housing sector has been particularly robust.
But growth in other parts of the economy remains uneven and inconsistent, particularly in the all-important employment sector. The June Labor Department report showed nonfarm payrolls rising by 223,000 jobs, slightly weaker than expected, while the previous two months’ gains were revised sharply downward. While it was nice to see the unemployment rate falling to a seven-year low of 5.3% in June, we can’t forget that it was mostly due to fewer people looking for work. The labor force participation rate is now at 62.6%, its lowest level since 1977. On the bright side, fewer people are losing their jobs, as unemployment claims have held below 300,000 for more than four months.
For its part, the Fed lowered significantly its forecast for U.S. economic growth this year, which argues for a slow and deliberate policy on raising interest rates. The Fed now expects U.S. GDP to grow by 1.8% to 2% this year, down from a range of 2.3% to 2.7% from its projection of just three months earlier. It also lowered its
interest-rate forecasts for next year and 2017. A Fed that has taken this long to raise rates is not likely to start increasing them rapidly, especially if the economy doesn’t accelerate enough and events abroad get worse, Wright believes.
Despite the challenges of the second quarter, we need to keep in mind how remarkably resilient the global financial markets have proven to be over the past several years. After an initial selloff following the breakdown of Greek bailout talks and its eventual default, for example, stocks quickly rebounded. Of course, a great deal of that resilience is based on well-founded investor confidence that central banks will continue to provide the necessary liquidity and accommodation in the event of a crisis. As a result, Wright continues to believe that a well-diversified portfolio of financial assets, including both foreign and domestic securities, remains the best course for long-term investors.
Sincerely,
Peter M. Donovan, CFA
Chief Executive Officer
Fund Expenses
Example:
As a shareholder of a fund, you incur two types of costs: (1) transaction costs, including redemption fees (if applicable); and (2) ongoing costs including management fees; distribution or service fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2015 – June 30, 2015).
Actual Expenses:
The first line of the tables shown on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes:
The second line of the tables provides information about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual return of the Fund. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees (if applicable). Therefore, the second line of the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Fund Expenses
EQUITY FUNDS
Wright Selected Blue Chip Equities Fund
| | Beginning Account Value (1/1/15) | Ending Account Value (6/30/15) | Expenses Paid During Period* (1/1/15-6/30/15) |
| Actual Fund Shares | $1,000.00 | $1,066.31 | $7.17 |
| Hypothetical (5% return per year before expenses) |
| Fund Shares | $1,000.00 | $1,017.85 | $7.00 |
*Expenses are equal to the Fund’s annualized expense ratio of 1.40% multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on December 31, 2014.
Wright Major Blue Chip Equities Fund
| | Beginning Account Value (1/1/15) | Ending Account Value (6/30/15) | Expenses Paid During Period* (1/1/15-6/30/15) |
| Actual Fund Shares | $1,000.00 | $1,000.68 | $6.94 |
| Hypothetical (5% return per year before expenses) |
| Fund Shares | $1,000.00 | $1,017.85 | $7.00 |
*Expenses are equal to the Fund’s annualized expense ratio of 1.40% multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on December 31, 2014.
Wright International Blue Chip Equities Fund
| | Beginning Account Value (1/1/15) | Ending Account Value (6/30/15) | Expenses Paid During Period* (1/1/15-6/30/15) |
| Actual Fund Shares | $1,000.00 | $1,042.02 | $9.37 |
| Hypothetical (5% return per year before expenses) |
| Fund Shares | $1,000.00 | $1,015.62 | $9.25 |
*Expenses are equal to the Fund’s annualized expense ratio of 1.85% multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on December 31, 2014.
FIXED-INCOME FUNDS
Wright Current Income Fund
| | Beginning Account Value (1/1/15) | Ending Account Value (6/30/15) | Expenses Paid During Period* (1/1/15-6/30/15) |
| Actual Fund Shares | $1,000.00 | $1,009.35 | $4.48 |
| Hypothetical (5% return per year before expenses) |
| Fund Shares | $1,000.00 | $1,020.33 | $4.51 |
*Expenses are equal to the Fund’s annualized expense ratio of 0.90% multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on December 31, 2014.
Wright Selected Blue Chip Equities Fund (WSBC)
Portfolio of Investments – As of June 30, 2015
AUTOMOBILES & COMPONENTS - 1.2% |
| Gentex Corp. | 28,255 | | $ | 463,947 | |
BANKS - 5.6% |
| Commerce Bancshares, Inc. | 6,172 | | $ | 288,664 | |
| East West Bancorp, Inc. | 10,125 | | | 453,803 | |
| Fulton Financial Corp. | 32,040 | | | 418,442 | |
| New York Community Bancorp, Inc. | 22,500 | | | 413,550 | |
| Signature Bank* | 4,330 | | | 633,869 | |
| | | | $ | 2,208,328 | |
CAPITAL GOODS - 9.4% |
| AECOM* | 25,515 | | $ | 844,036 | |
| Carlisle Cos., Inc. | 9,940 | | | 995,193 | |
| Esterline Technologies Corp.* | 1,990 | | | 189,727 | |
| Huntington Ingalls Industries, Inc. | 6,070 | | | 683,421 | |
| ITT Corp. | 3,385 | | | 141,629 | |
| Orbital ATK, Inc. | 4,625 | | | 339,290 | |
| Trinity Industries, Inc. | 5,645 | | | 149,197 | |
| Triumph Group, Inc. | 4,310 | | | 284,417 | |
| Vectrus, Inc.* | 3,885 | | | 96,620 | |
| | | | $ | 3,723,530 | |
COMMERCIAL & PROFESSIONAL SERVICES - 5.5% |
| Deluxe Corp. | 13,940 | | $ | 864,280 | |
| ManpowerGroup, Inc. | 4,585 | | | 409,807 | |
| RR Donnelley & Sons Co. | 42,880 | | | 747,399 | |
| Towers Watson & Co. - Class A | 1,130 | | | 142,154 | |
| | | | $ | 2,163,640 | |
CONSUMER DURABLES & APPAREL - 4.8% |
| Hanesbrands, Inc. | 44,100 | | $ | 1,469,412 | |
| Vista Outdoor, Inc.* | 9,250 | | | 415,325 | |
| | | | $ | 1,884,737 | |
CONSUMER SERVICES - 2.8% |
| Brinker International, Inc. | 19,125 | | $ | 1,102,556 | |
DIVERSIFIED FINANCIALS - 3.8% |
| Janus Capital Group, Inc. | 28,880 | | $ | 494,426 | |
| MSCI, Inc. | 10,010 | | | 616,115 | |
| Raymond James Financial, Inc. | 6,750 | | | 402,165 | |
| | | | $ | 1,512,706 | |
ENERGY - 3.4% |
| HollyFrontier Corp. | 6,249 | | $ | 266,770 | |
| Superior Energy Services, Inc. | 26,305 | | | 553,457 | |
| Western Refining, Inc. | 10,140 | | | 442,307 | |
| World Fuel Services Corp. | 1,910 | | | 91,584 | |
| | | | $ | 1,354,118 | |
FOOD, BEVERAGE & TOBACCO - 1.2% |
| Ingredion, Inc. | 5,685 | | $ | 453,720 | |
HEALTH CARE EQUIPMENT & SERVICES - 9.1% |
| Align Technology, Inc.* | 1,900 | | $ | 119,149 | |
| Centene Corp.* | 16,625 | | | 1,336,650 | |
| Health Net, Inc.* | 11,305 | | | 724,876 | |
| | Shares | | | Value | |
| | | | | | |
| MEDNAX, Inc.* | 2,345 | | $ | 173,788 | |
| Omnicare, Inc. | 2,415 | | | 227,614 | |
| ResMed, Inc. | 4,500 | | | 253,665 | |
| Universal Health Services, Inc. - Class B | 3,610 | | | 512,981 | |
| VCA, Inc.* | 4,550 | | | 247,543 | |
| | | | $ | 3,596,266 | |
HOUSEHOLD & PERSONAL PRODUCTS - 1.7% |
| Energizer Holdings, Inc. | 4,995 | | $ | 657,092 | |
INSURANCE - 7.6% |
| American Financial Group, Inc. | 6,150 | | $ | 399,996 | |
| Brown & Brown, Inc. | 5,675 | | | 186,481 | |
| Everest Re Group, Ltd. | 2,460 | | | 447,745 | |
| HCC Insurance Holdings, Inc. | 15,690 | | | 1,205,620 | |
| Reinsurance Group of America, Inc. | 4,235 | | | 401,774 | |
| WR Berkley Corp. | 6,937 | | | 360,238 | |
| | | | $ | 3,001,854 | |
MATERIALS - 4.5% |
| Packaging Corp. of America | 14,630 | | $ | 914,229 | |
| Rock-Tenn Co. - Class A | 14,395 | | | 866,579 | |
| | | | $ | 1,780,808 | |
MEDIA - 0.4% |
| Meredith Corp. | 3,100 | | $ | 161,665 | |
PHARMACEUTICALS & BIOTECHNOLOGY - 2.8% |
| Akorn, Inc.* | 3,515 | | $ | 153,465 | |
| Charles River Laboratories International, Inc.* | 3,210 | | | 225,791 | |
| United Therapeutics Corp.* | 4,065 | | | 707,107 | |
| | | | $ | 1,086,363 | |
REAL ESTATE - 6.5% |
| Corrections Corp. of America REIT | 10,555 | | $ | 349,159 | |
| Duke Realty Corp. REIT | 4,685 | | | 87,001 | |
| Jones Lang LaSalle, Inc. | 7,230 | | | 1,236,330 | |
| Omega Healthcare Investors, Inc. REIT | 25,565 | | | 877,646 | |
| | | | $ | 2,550,136 | |
RETAILING - 6.3% |
| Advance Auto Parts, Inc. | 2,640 | | $ | 420,526 | |
| Big Lots, Inc. | 8,045 | | | 361,944 | |
| Foot Locker, Inc. | 18,000 | | | 1,206,180 | |
| Murphy USA, Inc.* | 4,440 | | | 247,841 | |
| Signet Jewelers, Ltd. | 2,060 | | | 264,174 | |
| | | | $ | 2,500,665 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 3.8% |
| Integrated Device Technology, Inc.* | 4,430 | | $ | 96,131 | |
| Skyworks Solutions, Inc. | 13,370 | | | 1,391,817 | |
| | | | $ | 1,487,948 | |
SOFTWARE & SERVICES - 7.6% |
| Alliance Data Systems Corp.* | 1,065 | | $ | 310,916 | |
| Broadridge Financial Solutions, Inc. | 8,250 | | | 412,582 | |
| Cadence Design Systems, Inc.* | 34,585 | | | 679,941 | |
| Convergys Corp. | 7,930 | | | 202,136 | |
| FactSet Research Systems, Inc. | 1,260 | | | 204,763 | |
| Fortinet, Inc.* | 4,660 | | | 192,598 | |
| See Notes to Financial Statements. | 6 | |
Wright Selected Blue Chip Equities Fund (WSBC)
Portfolio of Investments – As of June 30, 2015
| | Shares | | | Value | |
| | | | | | |
| Global Payments, Inc. | 4,265 | | $ | 441,214 | |
| PTC, Inc.* | 13,555 | | | 556,026 | |
| | | | $ | 3,000,176 | |
TECHNOLOGY HARDWARE & EQUIPMENT - 4.2% |
| ARRIS Group, Inc.* | 19,390 | | $ | 593,334 | |
| Arrow Electronics, Inc.* | 9,065 | | | 505,827 | |
| Avnet, Inc. | 6,860 | | | 282,015 | |
| Zebra Technologies Corp.* | 2,610 | | | 289,840 | |
| | | | $ | 1,671,016 | |
TRANSPORTATION - 2.1% |
| Alaska Air Group, Inc. | 9,085 | | $ | 585,347 | |
| JetBlue Airways Corp.* | 12,355 | | | 256,490 | |
| | | | $ | 841,837 | |
UTILITIES - 4.9% |
| Great Plains Energy, Inc. | 18,340 | | $ | 443,094 | |
| ONE Gas, Inc. | 12,001 | | | 510,763 | |
| UGI Corp. | 28,947 | | | 997,224 | |
| | | | $ | 1,951,081 | |
TOTAL EQUITY INTERESTS - 99.2% (identified cost, $28,573,092) | | $ | 39,154,189 | |
SHORT-TERM INVESTMENTS - 0.9% |
| Fidelity Government Money Market Fund, 0.01% (1) | 337,019 | | $ | 337,019 | |
TOTAL SHORT-TERM INVESTMENTS - 0.9% (identified cost, $337,019) | | $ | 337,019 | |
TOTAL INVESTMENTS — 100.1% (identified cost, $28,910,111) | | $ | 39,491,208 | |
| LIABILITIES, IN EXCESS OF OTHER ASSETS — (0.1)% | | | (40,280 | ) |
| NET ASSETS — 100.0% | | $ | 39,450,928 | |
REIT — Real Estate Investment Trust
| * | Non-income producing security. |
| (1) | Variable rate security. Rate presented is as of June 30, 2015. |
| Portfolio Composition by Sector |
| % of total investments at June 30, 2015 |
Financials | 23.7% |
| Industrials | 17.2% |
| Information Technology | 15.7% |
| Consumer Discretionary | 15.6% |
| Health Care | 12.0% |
| Utilities | 5.0% |
| Materials | 4.5% |
| Energy | 3.5% |
| Consumer Staples | 2.8% |
| See Notes to Financial Statements. | 7 | |
Wright Selected Blue Chip Equities Fund (WSBC)
| STATEMENT OF ASSETS AND LIABILITIES |
| As of June 30, 2015 |
| | | | | | | |
| ASSETS: | | | FALSE | |
| | Investments, at value | | | | |
| | (identified cost $28,910,111) (Note 1A) | | $ | 39,491,208 | ###### |
| | Receivable for fund shares sold | | | 9,630 | |
| | Dividends receivable | | | 35,985 | |
| | Prepaid expenses and other assets | | | 20,651 | |
| | Total assets | | $ | 39,557,474 | |
| | | | | | | |
| LIABILITIES: | | | | |
| | Payable for fund shares reacquired | | $ | 89,417 | |
| | Accrued expenses and other liabilities | | | 17,129 | |
| | Total liabilities | | $ | 106,546 | |
| NET ASSETS | | $ | 39,450,928 | |
| | | | | | | |
| NET ASSETS CONSIST OF: | | | | |
| | Paid-in capital | | $ | 27,764,283 | |
| | Accumulated net realized gain on investments | | | 1,073,540 | |
| | Undistributed net investment income | | | 32,008 | |
| | Unrealized appreciation on investments | | | 10,581,097 | |
| | Net assets applicable to outstanding shares | | $ | 39,450,928 | |
| | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED) | | | 3,038,788 | |
| | | | | | | |
| NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST | | $ | 12.98 | |
| | | | | | | |
| STATEMENT OF OPERATIONS |
| For the Six Months Ended June 30, 2015 |
| | | | | | | |
| INVESTMENT INCOME (Note 1C) | | | FALSE | |
| 3E+07 | Dividend income | | $ | 302,859 | |
| | Total investment income | | $ | 302,859 | |
| | | | | | | |
| Expenses – | | | | |
| | Investment adviser fee (Note 3) | | $ | 115,956 | |
| | Administrator fee (Note 3) | | | 23,191 | |
| | Trustee expense (Note 3) | | | 8,822 | |
| | Custodian fee | | | 2,495 | |
| | Accountant fee | | | 19,574 | |
| | Distribution expenses (Note 4) | | | 48,315 | |
| | Transfer agent fee | | | 14,497 | |
| | Printing | | | 39 | |
| | Shareholder communications | | | 2,873 | |
| | Audit services | | | 8,481 | |
| | Legal services | | | 12,287 | |
| | Compliance services | | | 3,136 | |
| | Registration costs | | | 9,408 | |
| | Interest expense (Note 8) | | | 118 | |
| | Miscellaneous | | | 11,986 | |
| | Total expenses | | $ | 281,178 | |
| | | | | | | |
| Deduct – | | | | |
| | Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4) | | $ | (10,327 | ) |
| | Net expenses | | $ | 270,851 | |
| | Net investment income | | $ | 32,008 | |
| | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |
| | Net realized gain on investment transactions | | $ | 1,119,657 | |
| | Net change in unrealized appreciation (depreciation) on investments | | | 1,350,381 | |
| | Net realized and unrealized gain on investments | | $ | 2,470,038 | |
| | Net increase in net assets from operations | | $ | 2,502,046 | |
| | | | | | | |
| See Notes to Financial Statements. | 8 | |
Wright Selected Blue Chip Equities Fund (WSBC)
| | | | | | | | | | | |
| | | Six Months Ended | | Year Ended | |
| STATEMENTS OF CHANGES IN NET ASSETS | | June 30, 2015 | | December 31, 2014 | |
| INCREASE (DECREASE) IN NET ASSETS: | | | | | | | | | |
From operations – | | | | | | | | | |
| | Net investment income | | $ | 32,008 | | | $ | 76,039 | | |
| 0 | Net realized gain on investment transactions | | | 1,119,657 | | | | 6,165,711 | | |
| | Net change in unrealized appreciation (depreciation) on investments | | | 1,350,381 | | | | (3,334,464 | ) | |
| | Net increase in net assets from operations | | $ | 2,502,046 | | | $ | 2,907,286 | | |
| Distributions to shareholders (Note 2) | | | | | | | | | |
| | From net investment income | | $ | - | | | $ | (97,816 | ) | |
| | From net realized capital gains | | | (1,773,549 | ) | | | (6,795,055 | ) | |
| | Total distributions | | $ | (1,773,549 | ) | | $ | (6,892,871 | ) | |
| Net increase in net assets resulting from fund share transactions (Note 6) | | $ | 1,112,559 | | | $ | 1,391,495 | | |
| Net increase (decrease) in net assets | | $ | 1,841,056 | | | $ | (2,594,090 | ) | |
| ## | | | | | | | | | | |
| NET ASSETS: | | | | | | | | | |
| | At beginning of period | | | 37,609,872 | | | | 40,203,962 | | |
| | At end of period | | $ | 39,450,928 | | | $ | 37,609,872 | | |
| | | | | | | | | | | |
| UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD | | $ | 32,008 | | | $ | - | | |
| | | | | | | | | | | |
| See Notes to Financial Statements. | 9 | |
Wright Selected Blue Chip Equities Fund (WSBC)
| These financial highlights reflect selected data for a share outstanding throughout each period. | | | | | | |
| | | | | | | |
| | | Six Months Ended June 30, | Years Ended December 31, |
| FINANCIAL HIGHLIGHTS | 2015 | | 2014 | 2013 | 2012 | 2011 | 2010 |
| | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | $ | 12.740 | | | $ | 14.160 | | $ | 11.530 | | $ | 10.280 | | $ | 10.400 | | $ | 8.400 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) (1) | | 0.011 | | | | 0.027 | | | (0.007 | ) | | 0.028 | | | (0.018 | ) | | (0.022 | ) |
| Net realized and unrealized gain (loss) | | 0.838 | | | | 1.043 | | | 4.412 | | | 1.616 | | | (0.102 | ) | | 2.030 | |
| | Total income (loss) from investment operations | | 0.849 | | | | 1.070 | | | 4.405 | | | 1.644 | | | (0.120 | ) | | 2.008 | |
| | | | | | | | | | | | | | | | | | | | |
| Less distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | — | | | | (0.036 | ) | | — | (2) | | (0.025 | ) | | — | | | (0.008 | ) |
| From net realized gains | | (0.609 | ) | | | (2.454 | ) | (1.775 | ) | | (0.369 | ) | | — | | | — | |
| | Total distributions | | (0.609 | ) | | | (2.490 | ) | | (1.775 | ) | | (0.394 | ) | | — | | | (0.008 | ) |
| Net asset value, end of period | $ | 12.980 | | | $ | 12.740 | | $ | 14.160 | | $ | 11.530 | | $ | 10.280 | | $ | 10.400 | |
Total Return(3) | | 6.63 | %(5) | | | 7.99 | % | | 39.82 | % | | 16.02 | % | | (1.15 | )% | | 23.93 | % |
Ratios/Supplemental Data(6): | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $39,451 | | | $37,610 | | $40,204 | | $29,922 | | $32,362 | | $28,370 | |
| Ratios (As a percentage of average daily net assets): |
| Net expenses | | 1.40 | %(5) | 1.45 | % | 1.40 | % | 1.40 | % | 1.40 | % | 1.40 | % |
| Net investment income (loss) | | 0.17 | %(5) | 0.19 | % | (0.06 | )% | 0.25 | % | (0.17 | )% | (0.24 | )% |
| Portfolio turnover rate | | 28 | %(4) | 66 | % | 76 | % | 54 | % | 82 | % | 60 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | For the six months ended June 30, 2015, and for the years ended December 31, 2014, 2013, 2012, 2011 and 2010 | For the six months ended June 30, 2015, and for the years ended December 31, 2014, 2013, 2012, 2011 and 2010 | | | | | | | | | |
| (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: |
| | | 2015 | | 2014 | 2013 | 2012 | 2011 | 2010 |
| | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses | | 1.45 | %(5) | | 1.51 | % | | 1.43 | % | | 1.48 | % | | 1.46 | % | | 1.79 | % |
| Net investment income (loss) | | 0.12 | %(5) | | 0.13 | % | | (0.08 | )% | | 0.17 | % | | (0.23 | )% | | (0.63 | )% |
| | | | | | | | | | | | | | | | | | | | | |
| See Notes to Financial Statements. | 10 | |
Wright Major Blue Chip Equities Fund (WMBC)
Portfolio of Investments – As of June 30, 2015
EQUITY INTERESTS - 101.1% |
BANKS - 9.6% |
| Bank of America Corp. | 36,940 | | $ | 628,719 | |
| JPMorgan Chase & Co. | 11,090 | | | 751,458 | |
| | | | $ | 1,380,177 | |
CAPITAL GOODS - 10.4% |
| 3M Co. | 3,475 | | $ | 536,193 | |
| General Dynamics Corp. | 5,360 | | | 759,458 | |
| Rockwell Automation, Inc. | 1,640 | | | 204,410 | |
| | | | $ | 1,500,061 | |
CONSUMER DURABLES & APPAREL - 0.5% |
| Polaris Industries, Inc. | 505 | | $ | 74,796 | |
CONSUMER SERVICES - 0.5% |
| Starbucks Corp. | 1,405 | | $ | 75,329 | |
DIVERSIFIED FINANCIALS - 3.7% |
| Affiliated Managers Group, Inc.* | 325 | | $ | 71,045 | |
| Franklin Resources, Inc. | 1,385 | | | 67,907 | |
| T. Rowe Price Group, Inc. | 5,085 | | | 395,257 | |
| | | | $ | 534,209 | |
ENERGY - 7.1% |
| Chevron Corp. | 2,110 | | $ | 203,552 | |
| Halliburton Co. | 5,155 | | | 222,026 | |
| Schlumberger, Ltd. | 6,835 | | | 589,108 | |
| | | | $ | 1,014,686 | |
FOOD & STAPLES RETAILING - 0.2% |
| Walgreens Boots Alliance, Inc. | 360 | | $ | 30,398 | |
FOOD, BEVERAGE & TOBACCO - 4.7% |
| Coca-Cola Co. (The) | 9,235 | | $ | 362,289 | |
| Monster Beverage Corp.* | 2,280 | | | 305,566 | |
| | | | $ | 667,855 | |
HEALTH CARE EQUIPMENT & SERVICES - 5.5% |
| Abbott Laboratories | 7,490 | | $ | 367,609 | |
| Stryker Corp. | 4,435 | | | 423,853 | |
| | | | $ | 791,462 | |
INSURANCE - 5.5% |
| MetLife, Inc. | 14,025 | | $ | 785,260 | |
MATERIALS - 1.7% |
| CF Industries Holdings, Inc. | 3,700 | | $ | 237,836 | |
PHARMACEUTICALS & BIOTECHNOLOGY - 11.3% |
| Amgen, Inc. | 4,630 | | $ | 710,798 | |
| Gilead Sciences, Inc. | 1,760 | | | 206,061 | |
| Johnson & Johnson | 7,325 | | | 713,894 | |
| | | | $ | 1,630,753 | |
REAL ESTATE - 0.3% |
| CBRE Group, Inc. - Class A* | 1,340 | | $ | 49,580 | |
RETAILING - 5.4% |
| Dollar Tree, Inc.* | 850 | | $ | 67,142 | |
| Foot Locker, Inc. | 3,805 | | | 254,973 | |
| TJX Cos., Inc. (The) | 6,950 | | | 459,881 | |
| | | | $ | 781,996 | |
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 8.8% |
| Intel Corp. | 17,390 | | $ | 528,917 | |
| Skyworks Solutions, Inc. | 4,180 | | | 435,138 | |
| Texas Instruments, Inc. | 5,805 | | | 299,015 | |
| | | | $ | 1,263,070 | |
SOFTWARE & SERVICES - 13.2% |
| Accenture PLC - Class A | 2,790 | | $ | 270,016 | |
| Google, Inc. - Class C* | 150 | | | 78,077 | |
| MasterCard, Inc. - Class A | 1,080 | | | 100,958 | |
| Microsoft Corp. | 14,755 | | | 651,433 | |
| Oracle Corp. | 16,995 | | | 684,899 | |
| Visa, Inc. - Class A | 1,680 | | | 112,812 | |
| | | | $ | 1,898,195 | |
TECHNOLOGY HARDWARE & EQUIPMENT - 5.7% |
| Apple, Inc. | 3,895 | | $ | 488,530 | |
| QUALCOMM, Inc. | 5,235 | | | 327,868 | |
| | | | $ | 816,398 | |
TELECOMMUNICATION SERVICES - 2.9% |
| AT&T, Inc. | 11,560 | | $ | 410,611 | |
UTILITIES - 4.1% |
| NextEra Energy, Inc. | 5,995 | | $ | 587,690 | |
TOTAL EQUITY INTERESTS - 101.1% (identified cost, $12,802,775) | | $ | 14,530,362 | |
TOTAL INVESTMENTS — 101.1% (identified cost, $12,802,775) | | $ | 14,530,362 | |
| LIABILITIES, IN EXCESS OF OTHER ASSETS — (1.1)% | | | (153,828 | ) |
| NET ASSETS — 100.0% | | $ | 14,376,534 | |
PLC — Public Limited Company
| * | Non-income producing security. |
| Portfolio Composition by Sector |
| % of total investments at June 30, 2015 |
| Information Technology | 27.4% |
| Financials | 18.9% |
| Health Care | 16.7% |
| Industrials | 10.3% |
| Energy | 7.0% |
| Consumer Discretionary | 6.4% |
| Consumer Staples | 4.8% |
| Utilities | 4.1% |
| Telecommunication Services | 2.8% |
| Materials | 1.6% |
| See Notes to Financial Statements. | 11 | |
Wright Major Blue Chip Equities Fund (WMBC)
| STATEMENT OF ASSETS AND LIABILITIES |
| As of June 30, 2015 |
| | | | | | | |
| ASSETS: | | | FALSE | |
| | Investments, at value | | | | |
| | (identified cost $12,802,775) (Note 1A) | | $ | 14,530,362 | ###### |
| | Receivable for fund shares sold | | | 340 | |
| | Dividends receivable | | | 12,074 | |
| | Prepaid expenses and other assets | | | 19,760 | |
| | Total assets | | $ | 14,562,536 | |
| | | | | | | |
| LIABILITIES: | | | | |
| | Outstanding line of credit (Note 8) | | $ | 175,543 | |
| | Payable to custodian | | | 1,441 | |
| | Accrued expenses and other liabilities | | | 9,018 | |
| | Total liabilities | | $ | 186,002 | |
| NET ASSETS | | $ | 14,376,534 | |
| | | | | | | |
| NET ASSETS CONSIST OF: | | | | |
| | Paid-in capital | | $ | 12,996,011 | |
| | Accumulated net realized loss on investments | | | (414,065 | ) |
| | Undistributed net investment income | | | 67,001 | |
| | Unrealized appreciation on investments | | | 1,727,587 | |
| | Net assets applicable to outstanding shares | | $ | 14,376,534 | |
| | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED) | | | 752,490 | |
| | | | | | | |
| NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST | | $ | 19.11 | |
| | | | | | | |
| STATEMENT OF OPERATIONS |
| For the Six Months Ended June 30, 2015 |
| | | | | | | |
| INVESTMENT INCOME (Note 1C) | | | FALSE | |
| 1E+07 | Dividend income | | $ | 171,151 | |
| | Total investment income | | $ | 171,151 | |
| | | | | | | |
| Expenses – | | | | |
| | Investment adviser fee (Note 3) | | $ | 44,474 | |
| | Administrator fee (Note 3) | | | 8,895 | |
| | Trustee expense (Note 3) | | | 8,570 | |
| | Custodian fee | | | 2,424 | |
| | Accountant fee | | | 18,082 | |
| | Distribution expenses (Note 4) | | | 18,531 | |
| | Transfer agent fee | | | 12,215 | |
| | Printing | | | 15 | |
| | Shareholder communications | | | 2,293 | |
| | Audit services | | | 8,247 | |
| | Legal services | | | 4,795 | |
| | Compliance services | | | 2,673 | |
| | Registration costs | | | 8,990 | |
| | Interest expense (Note 8) | | | 346 | |
| | Miscellaneous | | | 7,614 | |
| | Total expenses | | $ | 148,164 | |
| | | | | | | |
| Deduct – | | | | |
| | Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4) | | $ | (44,047 | ) |
| | Net expenses | | $ | 104,117 | |
| | Net investment income | | $ | 67,034 | |
| | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |
| | Net realized gain on investment transactions | | $ | 621,046 | |
| | Net change in unrealized appreciation (depreciation) on investments | | | (687,408 | ) |
| | Net realized and unrealized loss on investments | | $ | (66,362 | ) |
| | Net increase in net assets from operations | | $ | 672 | |
| | | | | | | |
| See Notes to Financial Statements. | 12 | |
Wright Major Blue Chip Equities Fund (WMBC)
| | | | | | | | | | | |
| | | | Six Months Ended | | Year Ended | |
| STATEMENTS OF CHANGES IN NET ASSETS | | June 30, 2015 | | December 31, 2014 | |
| INCREASE (DECREASE) IN NET ASSETS: | | | | | | | | | |
From operations – | | | | | | | | | |
| | Net investment income | | $ | 67,034 | | | $ | 123,812 | | |
| 0 | Net realized gain on investment transactions | | | 621,046 | | | | 2,701,317 | | |
| | Net change in unrealized appreciation (depreciation) on investments | | | (687,408 | ) | | | (677,283 | ) | |
| | Net increase in net assets from operations | | $ | 672 | | | $ | 2,147,846 | | |
| Distributions to shareholders (Note 2) | | | | | | | | | |
| | From net investment income | | $ | (2,341 | ) | | $ | (126,109 | ) | |
| | Total distributions | | $ | (2,341 | ) | | $ | (126,109 | ) | |
| Net decrease in net assets resulting from fund share transactions (Note 6) | | $ | (1,546,707 | ) | | $ | (3,788,496 | ) | |
| Net decrease in net assets | | $ | (1,548,376 | ) | | $ | (1,766,759 | ) | |
| ## | | | | | | | | | | |
| NET ASSETS: | | | | | | | | | |
| | At beginning of period | | | 15,924,910 | | | | 17,691,669 | | |
| | At end of period | | $ | 14,376,534 | | | $ | 15,924,910 | | |
| | | | | | | | | | | |
| UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD | | $ | 67,001 | | | $ | 2,308 | | |
| | | | | | | | | | | |
| See Notes to Financial Statements. | 13 | |
Wright Major Blue Chip Equities Fund (WMBC)
| These financial highlights reflect selected data for a share outstanding throughout each period. | | | | | | |
| | | | | | | |
| | | Six Months Ended June 30, | Years Ended December 31, |
| FINANCIAL HIGHLIGHTS | 2015 | | 2014 | 2013 | 2012 | 2011 | 2010 |
| | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | $ | 19.100 | | | $ | 17.030 | | $ | 12.690 | | $ | 12.260 | | $ | 12.250 | | $ | 10.870 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) (1) | | 0.086 | | | | 0.127 | | | 0.096 | | | 0.082 | | | (0.012 | ) | | 0.044 | |
| Net realized and unrealized gain (loss) | | (0.076 | ) | | | 2.095 | | | 4.344 | | | 0.437 | | | 0.022 | | | 1.389 | |
| | Total income (loss) from investment operations | | 0.010 | | | | 2.222 | | | 4.440 | | | 0.519 | | | 0.010 | | | 1.433 | |
| | | | | | | | | | | | | | | | | | | | |
| Less distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | — | (2) | | | (0.152 | ) | | (0.100 | ) | | (0.089 | ) | | — | | | (0.053 | ) |
| Net asset value, end of period | $ | 19.110 | | | $ | 19.100 | | $ | 17.030 | | $ | 12.690 | | $ | 12.260 | | $ | 12.250 | |
Total Return(3) | | 0.07 | %(4) | | 13.04 | % | | 35.03 | % | | 4.23 | % | | 0.08 | % | | 13.19 | % |
Ratios/Supplemental Data(6): | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $14,377 | | | $15,925 | | $17,692 | | $15,559 | | $18,921 | | $21,676 | |
| Ratios (As a percentage of average daily net assets): |
| Net expenses | | 1.40 | %(5) | 1.40 | % | 1.40 | % | 1.40 | % | 1.40 | % | 1.41 | % |
| Net investment income (loss) | | 0.90 | %(5) | 0.71 | % | 0.65 | % | 0.64 | % | (0.09 | )% | 0.39 | % |
| Portfolio turnover rate | | 30 | %(4) | 62 | % | 64 | % | 76 | % | 154 | % | 68 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | For the six months ended June 30, 2015, and for the years ended December 31, 2014, 2013, 2012, 2011 and 2010 | For the six months ended June 30, 2015, and for the years ended December 31, 2014, 2013, 2012, 2011 and 2010 | | | | | | | | | |
| (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: |
| | | 2015 | | 2014 | 2013 | 2012 | 2011 | 2010 |
| | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses | | 2.00 | %(5) | | 1.86 | % | | 1.87 | % | | 1.84 | % | | 1.70 | % | | 1.68 | % |
| Net investment income (loss) | | 0.30 | %(5) | | 0.25 | % | | 0.17 | % | | 0.20 | % | | (0.39 | )% | | 0.13 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| See Notes to Financial Statements. | 14 | |
Wright International Blue Chip Equities Fund (WIBC)
Portfolio of Investments - As of June 30, 2015
AUSTRALIA - 1.9% |
| Australia & New Zealand Banking Group, Ltd. | 7,186 | | $ | 177,846 | |
| CIMIC Group, Ltd. | 4,936 | | | 82,515 | |
| CSL, Ltd. | 2,052 | | | 136,377 | |
| Woodside Petroleum, Ltd. | 5,216 | | | 137,229 | |
| | | | $ | 533,967 | |
CANADA - 10.5% |
| Alimentation Couche-Tard, Inc. - Class B | 17,706 | | $ | 757,765 | |
| Canadian Tire Corp., Ltd. - Class A | 2,748 | | | 294,027 | |
| Catamaran Corp.* | 6,275 | | | 383,652 | |
| CGI Group, Inc. - Class A* | 10,129 | | | 396,333 | |
| Magna International, Inc. | 5,557 | | | 312,023 | |
| Manulife Financial Corp. | 25,678 | | | 477,381 | |
| Toronto-Dominion Bank (The) | 8,966 | | | 380,918 | |
| | | | $ | 3,002,099 | |
DENMARK - 1.8% |
| AP Moeller - Maersk A/S - Class B | 131 | | $ | 237,139 | |
| Novo Nordisk A/S - Class B | 3,635 | | | 197,948 | |
| Pandora A/S | 786 | | | 84,408 | |
| | | | $ | 519,495 | |
FRANCE - 7.9% |
| AXA SA | 12,407 | | $ | 312,834 | |
| BNP Paribas SA | 9,345 | | | 563,821 | |
| Societe Generale SA | 4,253 | | | 198,409 | |
| TOTAL SA | 9,978 | | | 484,389 | |
| Veolia Environnement SA | 6,895 | | | 140,511 | |
| Vivendi SA | 18,635 | | | 469,766 | |
| Zodiac Aerospace | 2,086 | | | 67,867 | |
| | | | $ | 2,237,597 | |
GERMANY - 12.1% |
| Allianz SE | 1,407 | | $ | 219,005 | |
| BASF SE | 8,194 | | | 719,607 | |
| Bayer AG | 2,197 | | | 307,334 | |
| Bayerische Motoren Werke AG | 2,174 | | | 237,819 | |
| Continental AG | 882 | | | 208,583 | |
| Daimler AG | 3,861 | | | 351,209 | |
| K+S AG | 2,652 | | | 111,649 | |
| Merck KGaA | 1,311 | | | 130,559 | |
| Muenchener Rueckversicherungs-Gesellschaft AG - Class R | 2,747 | | | 486,652 | |
| Siemens AG | 1,215 | | | 122,312 | |
| Volkswagen AG | 2,372 | | | 548,530 | |
| | | | $ | 3,443,259 | |
HONG KONG - 1.2% |
| Cheung Kong Property Holdings, Ltd.* | 15,500 | | $ | 128,558 | |
| CK Hutchison Holdings, Ltd. | 15,500 | | | 227,725 | |
| | | | $ | 356,283 | |
IRELAND - 0.7% |
| Ryanair Holdings PLC | 15,868 | | $ | 208,802 | |
ISRAEL - 1.6% |
| Check Point Software Technologies, Ltd.* | 2,067 | | $ | 164,430 | |
| Teva Pharmaceutical Industries, Ltd., ADR | 4,796 | | | 283,444 | |
| | | | $ | 447,874 | |
ITALY - 3.1% |
| Enel SpA | 19,432 | | $ | 87,990 | |
| Eni SpA | 10,866 | | | 192,742 | |
| Intesa Sanpaolo SpA | 162,705 | | | 589,542 | |
| | | | $ | 870,274 | |
JAPAN - 25.2% |
| ABC-Mart, Inc. | 1,700 | | $ | 104,058 | |
| Asics Corp. | 4,300 | | | 111,220 | |
| Bridgestone Corp. | 3,400 | | | 125,800 | |
| Central Japan Railway Co. | 641 | | | 115,795 | |
| Daiwa House Industry Co., Ltd. | 5,900 | | | 137,561 | |
| Daiwa Securities Group, Inc. | 25,000 | | | 187,390 | |
| Fuji Electric Co., Ltd. | 25,000 | | | 107,670 | |
| Fuji Heavy Industries, Ltd. | 5,100 | | | 187,887 | |
| Hitachi Metals, Ltd. | 3,000 | | | 46,116 | |
| Hitachi, Ltd. | 20,000 | | | 131,868 | |
| Hoya Corp. | 6,600 | | | 264,669 | |
| ITOCHU Corp. | 42,900 | | | 566,905 | |
| KDDI Corp. | 36,200 | | | 873,900 | |
| Konica Minolta, Inc. | 5,600 | | | 65,398 | |
| Mazda Motor Corp. | 9,800 | | | 192,052 | |
| Mitsubishi Corp. | 7,700 | | | 169,398 | |
| Mitsubishi Electric Corp. | 8,000 | | | 103,428 | |
| Mitsubishi Heavy Industries, Ltd. | 21,000 | | | 127,804 | |
| Mitsubishi UFJ Financial Group, Inc. | 22,400 | | | 161,055 | |
| Mitsui & Co., Ltd. | 7,300 | | | 99,181 | |
| Murata Manufacturing Co., Ltd. | 1,600 | | | 279,296 | |
| NHK Spring Co., Ltd. | 10,400 | | | 114,654 | |
| Nippon Telegraph & Telephone Corp. | 11,000 | | | 398,549 | |
| Nissan Motor Co., Ltd. | 27,900 | | | 290,708 | |
| Nitto Denko Corp. | 1,100 | | | 90,434 | |
| NSK, Ltd. | 7,200 | | | 111,267 | |
| Omron Corp. | 3,500 | | | 152,168 | |
| ORIX Corp. | 16,200 | | | 241,084 | |
| Sekisui Chemical Co., Ltd. | 11,000 | | | 135,112 | |
| Sekisui House, Ltd. | 5,200 | | | 82,612 | |
| Shimadzu Corp. | 9,000 | | | 122,314 | |
| SMC Corp. | 300 | | | 90,381 | |
| Sumitomo Corp. | 23,000 | | | 267,658 | |
| Sumitomo Heavy Industries, Ltd. | 23,000 | | | 134,205 | |
| Sumitomo Rubber Industries, Ltd. | 5,000 | | | 77,514 | |
| Suzuki Motor Corp. | 4,600 | | | 155,445 | |
| Tokyo Gas Co., Ltd. | 8,000 | | | 42,496 | |
| Toyota Motor Corp. | 7,600 | | | 509,482 | |
| | | | $ | 7,174,534 | |
LUXEMBOURG - 0.5% |
| Subsea 7 SA* | 14,093 | | $ | 137,482 | |
MARSHALL ISLANDS - 0.2% |
| Dynagas LNG Partners LP | 3,855 | | $ | 61,217 | |
| See Notes to Financial Statements. | 15 | |
Wright International Blue Chip Equities Fund (WIBC)
Portfolio of Investments - As of June 30, 2015
NETHERLANDS - 2.2% |
| Boskalis Westminster NV | 8,365 | | $ | 409,160 | |
| ING Groep NV | 13,107 | | | 216,283 | |
| | | | $ | 625,443 | |
NORWAY - 1.1% |
| Statoil ASA | 4,083 | | $ | 72,708 | |
| Yara International ASA | 4,444 | | | 230,687 | |
| | | | $ | 303,395 | |
SPAIN - 6.0% |
| Banco Bilbao Vizcaya Argentaria SA | 19,654 | | $ | 192,531 | |
| Banco Santander SA | 39,113 | | | 272,983 | |
| Enagas SA | 5,254 | | | 142,809 | |
| Gas Natural SDG SA | 18,213 | | | 412,758 | |
| Iberdrola SA | 61,073 | | | 411,143 | |
| Red Electrica Corp. SA | 1,537 | | | 123,096 | |
| Telefonica SA | 9,928 | | | 141,038 | |
| | | | $ | 1,696,358 | |
SWITZERLAND - 11.5% |
| ABB, Ltd. | 7,568 | | $ | 158,559 | |
| Actelion, Ltd.* | 5,277 | | | 772,450 | |
| Nestle SA | 11,896 | | | 859,216 | |
| Novartis AG | 4,072 | | | 401,514 | |
| Swiss Re AG | 9,092 | | | 805,054 | |
| Zurich Insurance Group AG (Inhaberktie) | 930 | | | 283,214 | |
| | | | $ | 3,280,007 | |
UNITED KINGDOM - 10.8% |
| Aviva PLC | 42,445 | | $ | 328,760 | |
| BP PLC | 39,085 | | | 258,262 | |
| British American Tobacco PLC | 3,333 | | | 179,008 | |
| Legal & General Group PLC | 200,759 | | | 785,861 | |
| Rio Tinto PLC | 9,523 | | | 391,494 | |
| Royal Dutch Shell PLC - Class B | 5,432 | | | 154,370 | |
| Shire PLC | 5,722 | | | 458,499 | |
| Vodafone Group PLC | 47,347 | | | 171,153 | |
| WPP PLC | 15,603 | | | 349,924 | |
| | | | $ | 3,077,331 | |
TOTAL EQUITY INTERESTS - 98.3% (identified cost, $22,395,565) | | $ | 27,975,417 | |
SHORT-TERM INVESTMENTS - 1.2% |
| Fidelity Government Money Market Fund, 0.01% (1) | 344,374 | | $ | 344,374 | |
TOTAL SHORT-TERM INVESTMENTS - 1.2% (identified cost, $344,374) | | $ | 344,374 | |
TOTAL INVESTMENTS — 99.5% (identified cost, $22,739,939) | | $ | 28,319,791 | |
| OTHER ASSETS, IN EXCESS OF LIABILITIES — 0.5% | | | 144,435 | |
| NET ASSETS — 100.0% | | $ | 28,464,226 | |
ADR — American Depositary Receipt
LP — Limited Partnership
PLC — Public Limited Company
| * | Non-income producing security. |
| (1) | Variable rate security. Rate presented is as of June 30, 2015. |
| Portfolio Composition by Sector |
| % of total investments at June 30, 2015 |
| Financials | 25.5% |
| Consumer Discretionary | 17.7% |
| Industrials | 12.2% |
| Health Care | 11.9% |
| Consumer Staples | 6.4% |
| Materials | 5.7% |
| Telecommunication Services | 5.7% |
| Energy | 5.3% |
| Utilities | 4.9% |
| Information Technology | 4.7% |
| See Notes to Financial Statements. | 16 | |
Wright International Blue Chip Equities Fund (WIBC)
| STATEMENT OF ASSETS AND LIABILITIES |
| As of June 30, 2015 |
| | | | | | | |
| ASSETS: | | | FALSE | |
| | Investments, at value | | | | |
| | (identified cost $22,739,939) (Note 1A) | | $ | 28,319,791 | ###### |
| | Receivable for fund shares sold | | | 254 | |
| | Dividends receivable | | | 33,736 | |
| | Tax reclaims receivable | | | 119,958 | |
| | Prepaid expenses and other assets | | | 19,615 | |
| | Total assets | | $ | 28,493,354 | |
| | | | | | | |
| LIABILITIES: | | | | |
| | Due to broker | | | 1,073 | |
| | Accrued expenses and other liabilities | | | 28,055 | |
| | Total liabilities | | $ | 29,128 | |
| NET ASSETS | | $ | 28,464,226 | |
| | | | | | | |
| NET ASSETS CONSIST OF: | | | | |
| | Paid-in capital | | $ | 73,481,519 | |
| | Accumulated net realized loss on investments and foreign currency | | | (50,904,634 | ) |
| | Undistributed net investment income | | | 318,617 | |
| | Unrealized appreciation on investments and foreign currency | | | 5,568,724 | |
| | Net assets applicable to outstanding shares | | $ | 28,464,226 | |
| | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED) | | | 1,835,650 | |
| | | | | | | |
| NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST* | | $ | 15.51 | |
| | | | | | | |
| * Shares redeemed or exchanged within three months of purchase are charged a 2.00% redemption fee. |
| STATEMENT OF OPERATIONS |
| For the Six Months Ended June 30, 2015 |
| | | | | | | |
| INVESTMENT INCOME (Note 1C) | | | FALSE | |
| 2E+07 | Dividend income (net of foreign taxes $74,064) | | $ | 620,927 | |
| | Total investment income | | $ | 620,927 | |
| | | | | | | |
| Expenses – | | | | |
| | Investment adviser fee (Note 3) | | $ | 116,319 | |
| | Administrator fee (Note 3) | | | 24,718 | |
| | Trustee expense (Note 3) | | | 8,913 | |
| | Custodian fee | | | 18,981 | |
| | Accountant fee | | | 31,457 | |
| | Distribution expenses (Note 4) | | | 36,350 | |
| | Transfer agent fee | | | 22,437 | |
| | Printing | | | 27 | |
| | Shareholder communications | | | 2,804 | |
| | Audit services | | | 8,567 | |
| | Legal services | | | 8,306 | |
| | Compliance services | | | 3,010 | |
| | Registration costs | | | 9,576 | |
| | Interest expense (Note 8) | | | 228 | |
| | Miscellaneous | | | 12,196 | |
| | Total expenses | | $ | 303,889 | |
| | | | | | | |
| Deduct – | | | | |
| | Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4) | | $ | (34,673 | ) |
| | Net expenses | | $ | 269,216 | |
| | Net investment income | | $ | 351,711 | |
| | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: | |
| Net realized gain (loss) – | | | | |
| | Investment transactions | | $ | 471,507 | |
| | Foreign currency transactions | | | (6,871 | ) |
| | Net realized loss | | $ | 464,636 | |
| | | | | | | |
| Change in unrealized appreciation (depreciation) – | | | | |
| | Investments | | $ | 401,727 | |
| | Foreign currency translations | | | 986 | |
| | Net change in unrealized appreciation (depreciation) on investments | | $ | 402,713 | |
| | Net realized and unrealized gain on investments and foreign currency translations | | $ | 867,349 | |
| | Net increase in net assets from operations | | $ | 1,219,060 | |
| | | | | | | |
| See Notes to Financial Statements. | 17 | |
Wright International Blue Chip Equities Fund (WIBC)
| | | | | | | | | | | |
| | | | Six Months Ended | | Year Ended | |
| STATEMENTS OF CHANGES IN NET ASSETS | | June 30, 2015 | | December 31, 2014 | |
| INCREASE (DECREASE) IN NET ASSETS: | | | | | | | | | |
From operations – | | | | | | | | | |
| | Net investment income | | $ | 351,711 | | | $ | 745,142 | | |
| -47574 | Net realized gain on investment and foreign currency transactions | | | 464,636 | | | | 1,041,806 | | |
| | Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | 402,713 | | | | (3,715,302 | ) | |
| | Net increase (decrease) in net assets from operations | | $ | 1,219,060 | | | $ | (1,928,354 | ) | |
| Distributions to shareholders (Note 2) | | | | | | | | | |
| | From net investment income | | $ | (31,595 | ) | | $ | (595,650 | ) | |
| | Total distributions | | $ | (31,595 | ) | | $ | (595,650 | ) | |
| Net decrease in net assets resulting from fund share transactions (Note 6) | | $ | (715,621 | ) | | $ | (1,550,582 | ) | |
| Net increase (decrease) in net assets | | $ | 471,844 | | | $ | (4,074,586 | ) | |
| | | | | | | | | | | |
| NET ASSETS: | | | | | | | | | |
| | At beginning of period | | | 27,992,382 | | | | 32,066,968 | | |
| | At end of period | | $ | 28,464,226 | | | $ | 27,992,382 | | |
| | | | | | | | | | | |
| UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD | | $ | 318,617 | | | $ | (1,499 | ) | |
| | | | | | | | | | | |
| See Notes to Financial Statements. | 18 | |
Wright International Blue Chip Equities Fund (WIBC)
| These financial highlights reflect selected data for a share outstanding throughout each period. | | | | | | |
| | | | | | | |
| | | Six Months Ended June 30, | Years Ended December 31, |
| FINANCIAL HIGHLIGHTS | 2015 | | 2014 | 2013 | 2012 | 2011 | 2010 |
| | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | $ | 14.900 | | | $ | 16.280 | | $ | 14.120 | | $ | 12.580 | | $ | 14.860 | | $ | 14.460 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (1) | | 0.187 | | | | 0.382 | | | 0.236 | | | 0.244 | | | 0.224 | | | 0.170 | |
| Net realized and unrealized gain (loss) | | 0.439 | | | | (1.439 | ) | | 2.480 | | | 1.567 | | | (2.256 | ) | | 0.640 | |
| | Total income (loss) from investment operations | | 0.626 | | | | (1.057 | ) | | 2.716 | | | 1.811 | | | (2.032 | ) | | 0.810 | |
| | | | | | | | | | | | | | | | | | | | |
| Less distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | (0.016 | ) | | | (0.323 | ) | | (0.556 | ) | | (0.272 | ) | | (0.248 | ) | | (0.410 | ) |
Redemption Fees(1) | | — | (2) | | | — | (2) | | — | (2) | | 0.001 | | | — | (2) | | — | (2) |
| # | | | | | | | | | | | | | | | | | | | |
| Net asset value, end of period | $ | 15.510 | | | $ | 14.900 | | $ | 16.280 | | $ | 14.120 | | $ | 12.580 | | $ | 14.860 | |
Total Return(3) | | 4.20 | %(4) | | (6.51 | )% | | 19.46 | % | | 14.45 | % | | (13.65 | )% | | 5.76 | % |
Ratios/Supplemental Data(6): | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $28,464 | | | $27,992 | | $32,067 | | $33,256 | | $34,250 | | $49,994 | |
| Ratios (As a percentage of average daily net assets): |
| Net expenses | | 1.85 | %(5) | 1.85 | % | 1.85 | % | 1.85 | % | 1.78 | % | 1.74 | % |
| Net investment income | | 2.42 | %(5) | 2.37 | % | 1.57 | % | 1.84 | % | 1.56 | % | 1.23 | % |
| Portfolio turnover rate | | 22 | %(4) | 57 | % | 45 | % | 58 | % | 50 | % | 92 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | For the six months ended June 30, 2015, and for the years ended December 31, 2014, 2013, 2012, 2011 and 2010 | For the six months ended June 30, 2015, and for the years ended December 31, 2014, 2013, 2012, 2011 and 2010 | | | | | | | | | |
| (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 ratios would have been as follows: |
| | | 2015 | | 2014 | 2013 | 2012 | 2010 | | | | |
| | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses | | 2.09 | %(5) | | 2.01 | % | | 2.01 | % | | 2.01 | % | | 1.76 | % | | | | |
| Net investment income | | 2.18 | %(5) | | 2.21 | % | | 1.41 | % | | 1.69 | % | | 1.22 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| See Notes to Financial Statements. | 19 | |
The Wright Managed Equity Trust
Notes to Financial Statements
1. Significant Accounting Policies
Wright Selected Blue Chip Equities Fund (“WSBC”), Wright Major Blue Chip Equities Fund (“WMBC”), and Wright International Blue Chip Equities Fund (“WIBC”) (each a “Fund” and collectively, the “Funds”) (the Funds constituting Wright Managed Equity Trust (the “Trust”)), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. The Funds seek to provide total return consisting of price appreciation and current income.
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
A. Investment Valuations – Equity securities listed on a U.S. securities exchange generally are valued at the last sale price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and asked prices therefore on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ Global or Global Select Market generally are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and asked prices or, in the case of preferred equity securities that are not listed or traded in the over-the-counter market, by a third party pricing service. Investments in open-end mutual funds are valued at net asset value. Short-term debt securities with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. If short-term debt securities are acquired with a remaining maturity of more than sixty days, they will be valued by a third party pricing service. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by a third party pricing service. The daily valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges are monitored by the investment adviser and may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Funds in a manner that most fairly reflects the security’s value, or the amount that the Funds might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies, quotations or relevant information obtained from broker-dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B. Investment Transactions – Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.
C. Income – Dividend income is recorded on the ex-dividend date. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Funds are informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Funds’ understanding of applicable countries’ tax rules and rates. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium and accretion of discount.
D. Federal Taxes – Each Fund’s policy is to comply with the provisions of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable income and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. Foreign taxes are provided for based on WIBC’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. At December 31,
The Wright Managed Equity Trust
Notes to Financial Statements
2014, WMBC and WIBC, for federal income tax purposes, have capital loss carryforwards of $1,004,704 and $50,437,260, respectively, which will reduce each Fund’s taxable income arising from future net realized gain on investment transactions, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders, which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. Pursuant to the Code, such capital loss carryforwards will expire as follows:
| December 31, | WMBC | WIBC |
| 2016 | $ - | $15,739,844 |
| 2017 | 1,004,704 | 34,697,416 |
As of June 30, 2015, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Funds’ federal tax returns filed in the 3-year period ended December 31, 2014, remains subject to examination by the Internal Revenue Service.
E. Expenses – The majority of expenses of the Trust are directly identifiable to an individual Fund. Expenses which are not readily identifiable to a specific Fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the Funds.
F. Redemption Fees – A shareholder who redeems or exchanges shares of WIBC within three months of purchase will incur a redemption fee of 2.00% of the current net asset value of shares redeemed, subject to certain limitations. The fee is charged for the benefit of the remaining shareholders and will be paid to WIBC to help offset transaction costs. The fee is accounted for as an addition to paid-in capital. The Fund reserves the right to modify the terms of or terminate the fee at any time. There are limited exceptions to the imposition of the redemption fee.
G. Foreign Currency Translation – Investment valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. The portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
H. 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.
I. Indemnifications – Under each Fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Funds, and shareholders are indemnified against personal liability for the obligations of the Funds. Additionally, in the normal course of business, the Funds enter into agreements with service providers that may contain indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
J. Interim Financial Statements – The interim financial statements relating to June 30, 2015, and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of Funds’ management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
The Wright Managed Equity Trust
Notes to Financial Statements
2. Distributions to Shareholders
It is the present policy of the Trust to make annual distributions of all or substantially all of the net investment income of the Funds and to distribute annually all or substantially all of the net realized capital gains (reduced by available capital loss carryforwards from prior years, if any) of the Funds. Distributions to shareholders are recorded on the ex-dividend date. Shareholders may reinvest income and capital gain distributions in additional shares of the same Fund at the net asset value as of the reinvestment date or, at the election of the shareholder, receive distributions in cash. The Funds distinguish between distributions on a tax basis and a financial reporting basis. GAAP requires that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
As of December 31, 2014, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
| | | | WSBC | | | | WMBC | | | | WIBC | |
| Undistributed ordinary income | | $ | - | | | $ | 2,308 | | | $ | 31,427 | |
| Undistributed long-term gain | | | 1,773,382 | | | | - | | | | - | |
| Capital loss carryforward and post October losses | | | - | | | | (1,004,704 | ) | | | (51,063,021 | ) |
| Net unrealized appreciation | | | 9,184,766 | | | | 2,384,588 | | | | 4,826,836 | |
| Total | | $ | 10,958,148 | | | $ | 1,382,192 | | | $ | (46,204,758 | ) |
The difference between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to wash sales, passive foreign investment company transactions and real estate investment trust transactions.
For tax purposes, the prior year deferred late year losses were $625,761 (realized during the period November 1, 2014 through December 31, 2014) for WIBC. This loss was recognized for tax purposes on the first business day of the Fund’s current fiscal year, January 1, 2015.
3. Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Wright Investor Services, Inc. (“Wright”) as compensation for investment advisory services rendered to the Funds. The fees are computed at annual rates of the Funds' average daily net assets as noted below, and are payable monthly.
| Annual Advisory Fee Rates |
| Fund | Under $100 Million | $100 Million to $250 Million | $250 Million to $500 Million | $500 Million to $1 Billion | Over $1 Billion |
WSBC | 0.60% | 0.57% | 0.54% | 0.50% | 0.45% |
WMBC | 0.60% | 0.57% | 0.54% | 0.50% | 0.45% |
WIBC | 0.80% | 0.78% | 0.76% | 0.72% | 0.67% |
For the period ended June 30, 2015, 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 | $115,956 | 0.60% |
WMBC | $ 44,474 | 0.60% |
WIBC | $116,319 | 0.80% |
The Wright Managed Equity Trust
Notes to Financial Statements
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, 2015, the administrator fee for WSBC, WMBC and WIBC amounted to $23,191, $8,895 and $24,718, 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 or accrued to WISDI for the period ended June 30, 2015, for WSBC, WMBC and WIBC were $48,315, $18,531 and $36,350, 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, 2015, 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, 2016 (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 $25,516 and $1,261 for WMBC and WIBC, respectively. WISDI waived distribution fees of $10,327, $18,531 and $33,412 for WSBC, WMBC and WIBC, respectively.
The Wright Managed Equity Trust
Notes to Financial Statements
5. Investment Transactions
Purchases and sales of investments, other than short-term obligations, were as follows:
| Six Months Ended June 30, 2015 |
| | WSBC | WMBC | WIBC |
| Purchases | $10,677,747 | $4,473,849 | $6,279,113 |
| Sales | $11,490,072 | $5,542,141 | $6,790,214 |
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, 2015 | 36525 | | | | 42185 | # | # | | | | | 42004 | |
| | | | Six Months Ended June 30, 2015 | | Year Ended December 31, 2014 |
| | | | Shares | | | | Amount | | | Shares | | | | Amount | |
| | WSBC | | | | | | | | | | | | | | |
| | Sold | 375,120 | | | $ | 4,893,874 | | | 483,653 | | | $ | 6,650,822 | |
| | Issued to shareholders in payment of distributions declared | 99,526 | | | | 1,299,808 | | | 390,070 | | | | 5,067,909 | |
| | Redemptions | (388,855 | ) | | | (5,081,123 | ) | | (760,576 | ) | | | (10,327,236 | ) |
| | Net increase | 85,791 | | | $ | 1,112,559 | | | 113,147 | | | $ | 1,391,495 | |
| | | December 31, 2015 | 36525 | | | | 42185 | # | # | | | | | 42004 | |
| | | | Six Months Ended June 30, 2015 | | Year Ended December 31, 2014 |
| | | | Shares | | | | Amount | | | Shares | | | | Amount | |
| | WMBC | | | | | | | | | | | | | | |
| | Sold | 18,463 | | | $ | 351,694 | | | 79,931 | | | $ | 1,428,419 | |
| | Issued to shareholders in payment of distributions declared | 116 | | | | 2,213 | | | 5,861 | | | | 112,432 | |
| | Redemptions | (99,869 | ) | | | (1,900,614 | ) | | (290,925 | ) | | | (5,329,347 | ) |
| | Net decrease | (81,290 | ) | | $ | (1,546,707 | ) | | (205,133 | ) | | $ | (3,788,496 | ) |
| | | December 31, 2015 | 36525 | | | | 42185 | # | # | | | | | 42004 | |
| | | | Six Months Ended June 30, 2015 | | Year Ended December 31, 2014 |
| | | | Shares | | | | Amount | | | Shares | | | | Amount | |
| | WIBC | | | | | | | | | | | | | | |
| | Sold | 90,746 | | | $ | 1,398,015 | | | 193,526 | | | $ | 3,081,011 | |
| | Issued to shareholders in payment of distributions declared | 1,952 | | | | 30,612 | | | 38,383 | | | | 576,819 | |
| | Redemptions | (135,846 | ) | | | (2,144,703 | ) | | (323,080 | ) | | | (5,208,759 | ) |
| | Redemption fees | - | | | | 455 | | | - | | | | 347 | |
| | Net decrease | (43,148 | ) | | $ | (715,621 | ) | | (91,171 | ) | | $ | (1,550,582 | ) |
| | | | | | | | | | | | | | | | |
7. Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of the investment securities owned at June 30, 2015, as computed on a federal income tax basis, were as follows:
The Wright Managed Equity Trust
Notes to Financial Statements
| Six Months Ended June 30, 2015 |
| | WSBC | WMBC | WIBC |
| Aggregate cost | $ | 28,910,111 | | $ | 12,802,775 | | $ | 22,739,939 | |
| Gross unrealized appreciation | $ | 11,062,823 | | $ | 2,063,332 | | $ | 6,213,832 | |
| Gross unrealized depreciation | | (481,726) | | | (335,745) | | | (633,980) | |
| Net unrealized appreciation | $ | 10,581,097 | | $ | 1,727,587 | | $ | 5,579,852 | |
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. At June 30, 2015, WMBC had a balance outstanding pursuant to this line of credit of $175,543 at an interest rate of 1.18%.
The average borrowings and average interest rate (based on days with outstanding balances) for the period ended June 30, 2015, were as follows:
| | WSBC | WMBC | WIBC |
Average borrowings | $156,848 | $115,734 | $287,912 |
Average interest rate | 1.17% | 1.18% | 1.18% |
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.)
• Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)
The Wright Managed Equity Trust
Notes to Financial Statements
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, 2015, the inputs used in valuing each Fund’s investments, which are carried at value, were as follows:
WSBC
| Asset Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total |
| Equity Interests | $ | 39,154,189 | $ | - | $ | - | $ | 39,154,189 |
| Short-Term Investments | | - | | 337,019 | | - | | 337,019 |
| Total Investments | $ | 39,154,189 | $ | 337,019 | $ | - | $ | 39,491,208 |
WMBC
Asset Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total |
| Equity Interests | $ | 14,530,362 | $ | - | $ | - | $ | 14,530,362 |
| Total Investments | $ | 14,530,362 | $ | - | $ | - | $ | 14,530,362 |
WIBC
Asset Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total |
| Equity Interests | $ | 27,975,417 | $ | - | $ | - | $ | 27,975,417 |
| Short-Term Investments | | - | | 344,374 | | - | | 344,374 |
| Total Investments | $ | 27,975,417 | $ | 344,374 | $ | - | $ | 28,319,791 |
The Level 1 values displayed in these tables under Equity Interests are Common Stock. Refer to each Fund’s Portfolio of Investments for a further breakout of each security by industry or country.
The Funds utilize the end of period methodology when determining transfers in or out of the Level 2 category. As of June 30, 2015, there was $13,490,356 transferred from Level 2 into Level 1 in WIBC as a result of a change in valuation approach. This was a result of securities transferring from quoted prices in an inactive market to quoted prices in an active market.
11. New Accounting Pronouncement
In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2015-07 (“ASU 2015-07”) eliminating the requirement for investments measured at net asset value to be categorized within the fair value hierarchy under GAAP and requiring the disclosure of sufficient information to reconcile the fair value of the remaining assets categorized within the fair value hierarchy to the financial statements. ASU 2015-07 is effective for interim and annual reporting periods beginning after December 15, 2015. Management has reviewed the requirements and believes the adoption of ASU 2015-07 will not have a material impact on the financial statements.
The Wright Managed Equity Trust
Notes to Financial Statements
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, 2015, events and transactions subsequent to June 30, 2015, 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.
Wright Current Income Fund (WCIF)
Portfolio of Investments – As of June 30, 2015
| | Face Amount | | Description | | Coupon Rate | | | Maturity Date | | | Value | |
FIXED INCOME INVESTMENTS - 96.0% |
AGENCY MORTGAGE-BACKED SECURITIES - 93.4% |
| $ | 224,006 | | FHLMC Gold Pool #A37619 | | 4.500 | % | | | 09/01/35 | | $ | 243,328 | |
| | 487,401 | | FHLMC Gold Pool #A88945 | | 4.000 | % | | | 08/01/39 | | | 519,761 | |
| | 9,758 | | FHLMC Gold Pool #C00548 | | 7.000 | % | | | 08/01/27 | | | 11,255 | |
| | 27,422 | | FHLMC Gold Pool #C00778 | | 7.000 | % | | | 06/01/29 | | | 32,512 | |
| | 99,423 | | FHLMC Gold Pool #C91034 | | 6.000 | % | | | 06/01/27 | | | 113,704 | |
| | 34,992 | | FHLMC Gold Pool #D82572 | | 7.000 | % | | | 09/01/27 | | | 39,539 | |
| | 49,525 | | FHLMC Gold Pool #G04710 | | 6.000 | % | | | 09/01/38 | | | 56,354 | |
| | 421,918 | | FHLMC Gold Pool #G07025 | | 5.000 | % | | | 02/01/42 | | | 467,529 | |
| | 76,462 | | FHLMC Gold Pool #G08012 | | 6.500 | % | | | 09/01/34 | | | 90,416 | |
| | 147,787 | | FHLMC Gold Pool #G08022 | | 6.000 | % | | | 11/01/34 | | | 169,339 | |
| | 131,163 | | FHLMC Gold Pool #G08047 | | 6.000 | % | | | 03/01/35 | | | 150,267 | |
| | 671,931 | | FHLMC Gold Pool #G08378 | | 6.000 | % | | | 10/01/39 | | | 761,192 | |
| | 397,544 | | FHLMC Gold Pool #G30285 | | 6.000 | % | | | 02/01/26 | | | 449,974 | |
| | 107,395 | | FHLMC Gold Pool #G80111 | | 7.300 | % | | | 12/17/22 | | | 121,868 | |
| | 20,085 | | FHLMC Gold Pool #H09098 | | 6.500 | % | | | 10/01/37 | | | 22,836 | |
| | 139,995 | | FHLMC Gold Pool #P00024 | | 7.000 | % | | | 09/01/32 | | | 158,481 | |
| | 100,982 | | FHLMC Gold Pool #P50019 | | 7.000 | % | | | 07/01/24 | | | 115,716 | |
| | 655,648 | | FHLMC Gold Pool #P50079 | | 5.000 | % | | | 07/01/33 | | | 714,267 | |
| | 129,810 | | FHLMC Gold Pool #P50526 | | 6.500 | % | | | 09/01/36 | | | 145,313 | |
| | 1,496,049 | | FHLMC Gold Pool #Q11280 | | 4.000 | % | | | 09/01/42 | | | 1,586,924 | |
| | 183,523 | | FHLMC Gold Pool #T30126 | | 5.550 | % | | | 07/01/37 | | | 205,710 | |
| | 236,612 | | FHLMC Gold Pool #T30133 | | 5.550 | % | | | 07/01/37 | | | 265,324 | |
| | 505,495 | | FHLMC Gold Pool #T60798 | | 3.500 | % | | | 07/01/42 | | | 514,049 | |
| | 226,568 | | FHLMC Gold Pool #U30400 | | 5.550 | % | | | 06/01/37 | | | 254,040 | |
| | 290,095 | | FHLMC, Series 2097, Class PZ | | 6.000 | % | | | 11/15/28 | | | 330,273 | |
| | 45,813 | | FHLMC, Series 2176, Class OJ | | 7.000 | % | | | 08/15/29 | | | 53,391 | |
| | 32,745 | | FHLMC, Series 2201, Class C | | 8.000 | % | | | 11/15/29 | | | 37,868 | |
| | 134,734 | | FHLMC, Series 2218, Class ZB | | 6.000 | % | | | 03/15/30 | | | 152,885 | |
| | 61,486 | | FHLMC, Series 2259, Class ZM | | 7.000 | % | | | 10/15/30 | | | 70,704 | |
| | 34,890 | | FHLMC, Series 2576, Class HC | | 5.500 | % | | | 03/15/33 | | | 38,194 | |
| | 109,273 | | FHLMC, Series 2802, Class OH | | 6.000 | % | | | 05/15/34 | | | 119,767 | |
| | 317,929 | | FHLMC, Series 3033, Class WY | | 5.500 | % | | | 09/15/35 | | | 357,231 | |
| | 126,932 | | FHLMC, Series 3072, Class DL | | 6.000 | % | | | 02/15/35 | | | 139,954 | |
| | 453,836 | | FHLMC, Series 3143, Class BC | | 5.500 | % | | | 02/15/36 | | | 507,293 | |
| | 64,953 | | FHLMC, Series 3255, Class QE | | 5.500 | % | | | 12/15/36 | | | 72,930 | |
| | 100,812 | | FHLMC, Series 3641, Class TB | | 4.500 | % | | | 03/15/40 | | | 110,515 | |
| | 450,000 | | FHLMC, Series 3677, Class PB | | 4.500 | % | | | 05/15/40 | | | 494,854 | |
| | 108,025 | | FHLMC, Series 3814, Class B | | 3.000 | % | | | 02/15/26 | | | 111,199 | |
| | 458,790 | | FHLMC, Series 3926, Class OP | | 6.000 | % | | | 08/15/25 | | | 520,917 | |
| | 858,475 | | FHLMC, Series 3969, Class JY | | 4.500 | % | | | 12/15/41 | | | 948,300 | |
| | 159,468 | | FHLMC, Series 4011, Class DA | | 4.000 | % | | | 09/15/41 | | | 161,257 | |
| | 1,538,851 | | FHLMC, Series 4011, Class DB | | 4.000 | % | | | 09/15/41 | | | 1,633,207 | |
| | 242,087 | | FHLMC, Series 4050, Class NK | | 4.500 | % | | | 09/15/41 | | | 264,555 | |
| | 319,411 | | FHLMC, Series 4097, Class VT | | 3.500 | % | | | 08/15/25 | | | 338,491 | |
| | 86,260 | | FHLMC, Series 4103, Class DV | | 3.000 | % | | | 11/15/25 | | | 88,685 | |
| | 1,000,000 | | FHLMC, Series 4299, Class JY | | 4.000 | % | | | 01/15/44 | | | 1,076,813 | |
| | 95,617 | | FHLMC-GNMA, Series 15, Class L | | 7.000 | % | | | 07/25/23 | | | 109,322 | |
| | 35,021 | | FHLMC-GNMA, Series 23, Class KZ | | 6.500 | % | | | 11/25/23 | | | 39,400 | |
| | 57,420 | | FHLMC-GNMA, Series 4, Class D | | 8.000 | % | | | 12/25/22 | | | 64,992 | |
| | 277,068 | | FNMA Pool #252034 | | 7.000 | % | | | 09/01/28 | | | 329,980 | |
| | 43,675 | | FNMA Pool #252215 | | 6.000 | % | | | 11/01/28 | | | 50,115 | |
| | 340,784 | | FNMA Pool #256182 | | 6.000 | % | | | 03/01/36 | | | 384,855 | |
| | 45,599 | | FNMA Pool #256972 | | 6.000 | % | | | 11/01/37 | | | 50,154 | |
| | 286,845 | | FNMA Pool #257138 | | 5.000 | % | | | 03/01/38 | | | 310,773 | |
| See Notes to Financial Statements. | 28 | |
Wright Current Income Fund (WCIF)
Portfolio of Investments – As of June 30, 2015
| Face Amount | | Description | | Coupon Rate | | | Maturity Date | | | Value | |
| 630,882 | | FNMA Pool #465714 | | 4.680 | % | | | 08/01/28 | | $ | 717,156 | |
| 238,634 | | FNMA Pool #469130 | | 4.870 | % | | | 10/01/41 | | | 269,541 | |
| 12,354 | | FNMA Pool #535131 | | 6.000 | % | | | 03/01/29 | | | 14,166 | |
| 61,569 | | FNMA Pool #594207 | | 6.500 | % | | | 02/01/31 | | | 68,840 | |
| 27,731 | | FNMA Pool #673315 | | 5.500 | % | | | 11/01/32 | | | 31,126 | |
| 206,290 | | FNMA Pool #687887 | | 5.500 | % | | | 03/01/33 | | | 235,997 | |
| 406,888 | | FNMA Pool #694795 | | 5.500 | % | | | 04/01/33 | | | 465,551 | |
| 162,770 | | FNMA Pool #724888 | | 5.500 | % | | | 06/01/33 | | | 179,404 | |
| 53,971 | | FNMA Pool #733750 | | 6.310 | % | | | 10/01/32 | | | 61,797 | |
| 170,678 | | FNMA Pool #735861 | | 6.500 | % | | | 09/01/33 | | | 201,189 | |
| 347,709 | | FNMA Pool #745318 | | 5.000 | % | | | 12/01/34 | | | 382,414 | |
| 30,645 | | FNMA Pool #745630 | | 5.500 | % | | | 01/01/29 | | | 34,396 | |
| 73,131 | | FNMA Pool #801357 | | 5.500 | % | | | 08/01/34 | | | 82,825 | |
| 317,587 | | FNMA Pool #801506 | | 4.750 | % | | | 09/01/34 | | | 347,681 | |
| 103,457 | | FNMA Pool #813839 | | 6.000 | % | | | 11/01/34 | | | 114,870 | |
| 387,794 | | FNMA Pool #819457 | | 4.750 | % | | | 02/01/35 | | | 424,598 | |
| 1,844,500 | | FNMA Pool #821082 | | 6.000 | % | | | 03/01/35 | | | 2,104,324 | |
| 260,048 | | FNMA Pool #831927 | | 6.000 | % | | | 12/01/36 | | | 298,795 | |
| 812,211 | | FNMA Pool #846323 | | 4.250 | % | | | 11/01/35 | | | 873,233 | |
| 592,915 | | FNMA Pool #851762 | | 4.250 | % | | | 01/01/36 | | | 634,942 | |
| 80,880 | | FNMA Pool #871394 | | 7.000 | % | | | 04/01/21 | | | 86,779 | |
| 583,178 | | FNMA Pool #883281 | | 7.000 | % | | | 07/01/36 | | | 716,384 | |
| 137,845 | | FNMA Pool #888211 | | 7.000 | % | | | 08/01/36 | | | 167,181 | |
| 36,017 | | FNMA Pool #888367 | | 7.000 | % | | | 03/01/37 | | | 42,000 | |
| 76,659 | | FNMA Pool #888534 | | 5.000 | % | | | 08/01/37 | | | 83,146 | |
| 1,047,101 | | FNMA Pool #891367 | | 4.750 | % | | | 04/01/36 | | | 1,154,843 | |
| 150,604 | | FNMA Pool #908160 | | 5.500 | % | | | 12/01/36 | | | 164,449 | |
| 196,646 | | FNMA Pool #930504 | | 5.000 | % | | | 02/01/39 | | | 215,813 | |
| 70,220 | | FNMA Pool #930664 | | 6.500 | % | | | 03/01/39 | | | 83,549 | |
| 569,457 | | FNMA Pool #940441 | | 5.780 | % | | | 03/01/37 | | | 648,341 | |
| 219,452 | | FNMA Pool #954633 | | 5.500 | % | | | 02/01/37 | | | 236,644 | |
| 32,462 | | FNMA Pool #954957 | | 6.000 | % | | | 10/01/37 | | | 35,730 | |
| 207,722 | | FNMA Pool #995656 | | 7.000 | % | | | 06/01/33 | | | 248,522 | |
| 84,046 | | FNMA Pool #AD0756 | | 6.500 | % | | | 11/01/28 | | | 96,577 | |
| 549,006 | | FNMA Pool #AM3191 | | 3.380 | % | | | 05/01/28 | | | 560,759 | |
| 221,724 | | FNMA Pool #AM4671 | | 5.320 | % | | | 10/01/43 | | | 256,052 | |
| 828,930 | | FNMA Pool #AM5015 | | 4.940 | % | | | 12/01/43 | | | 964,635 | |
| 186,252 | | FNMA Whole Loan, Series 2003-W17, Class 1A7 | | 5.750 | % | | | 08/25/33 | | | 202,421 | |
| 10,310 | | FNMA Whole Loan, Series 2003-W18, Class 1A6 | | 5.370 | % | | | 08/25/43 | | | 10,339 | |
| 278,505 | | FNMA Whole Loan, Series 2004-W11, Class 1A1 | | 6.000 | % | | | 05/25/44 | | | 325,395 | |
| 181,571 | | FNMA, Series 2001-52, Class XZ | | 6.500 | % | | | 10/25/31 | | | 213,074 | |
| 86,291 | | FNMA, Series 2001-52, Class YZ | | 6.500 | % | | | 10/25/31 | | | 97,175 | |
| 73,379 | | FNMA, Series 2002-15, Class QH | | 6.000 | % | | | 04/25/32 | | | 81,174 | |
| 68,774 | | FNMA, Series 2003-30, Class JQ | | 5.500 | % | | | 04/25/33 | | | 75,871 | |
| 350,995 | | FNMA, Series 2003-32, Class BZ | | 6.000 | % | | | 11/25/32 | | | 403,442 | |
| 202,136 | | FNMA, Series 2004-17, Class H | | 5.500 | % | | | 04/25/34 | | | 224,392 | |
| 285,000 | | FNMA, Series 2004-25, Class LC | | 5.500 | % | | | 04/25/34 | | | 319,402 | |
| 256,000 | | FNMA, Series 2004-25, Class UC | | 5.500 | % | | | 04/25/34 | | | 283,131 | |
| 118,259 | | FNMA, Series 2005-106, Class UK | | 5.500 | % | | | 12/25/35 | | | 127,084 | |
| 172,000 | | FNMA, Series 2005-120, Class PB | | 6.000 | % | | | 01/25/36 | | | 203,815 | |
| 160,258 | | FNMA, Series 2005-58, Class BC | | 5.500 | % | | | 07/25/25 | | | 178,034 | |
| 897,917 | | FNMA, Series 2006-24, Class Z | | 5.500 | % | | | 04/25/36 | | | 1,014,082 | |
| 788,000 | | FNMA, Series 2006-74, Class PD | | 6.500 | % | | | 08/25/36 | | | 902,643 | |
| 282,760 | | FNMA, Series 2007-76, Class PE | | 6.000 | % | | | 08/25/37 | | | 313,561 | |
| 800,000 | | FNMA, Series 2007-81, Class GE | | 6.000 | % | | | 08/25/37 | | | 906,962 | |
| 716,085 | | FNMA, Series 2008-60, Class JC | | 5.000 | % | | | 07/25/38 | | | 788,020 | |
| 88,282 | | FNMA, Series 2008-86, Class GD | | 6.000 | % | | | 03/25/36 | | | 97,016 | |
| | | | | | | | | | | | | |
| See Notes to Financial Statements. | 29 | |
Wright Current Income Fund (WCIF)
Portfolio of Investments – As of June 30, 2015
| | Face Amount | | Description | | Coupon Rate | | | Maturity Date | | | Value | |
| | 150,000 | | FNMA, Series 2009-50, Class AX | | 5.000 | % | | | 07/25/39 | | $ | 173,743 | |
| | 318,000 | | FNMA, Series 2010-68, Class GE | | 4.500 | % | | | 07/25/40 | | | 327,597 | |
| | 210,000 | | FNMA, Series 2011-37, Class LH | | 4.000 | % | | | 11/25/40 | | | 228,326 | |
| | 184,749 | | FNMA, Series 2012-51, Class B | | 7.000 | % | | | 05/25/42 | | | 209,896 | |
| | 503,853 | | FNMA, Series 2013-17, Class YM | | 4.000 | % | | | 03/25/33 | | | 548,770 | |
| | 119,751 | | FNMA, Series G93-5, Class Z | | 6.500 | % | | | 02/25/23 | | | 134,358 | |
| | 22,148 | | GNMA I Pool #471369 | | 5.500 | % | | | 05/15/33 | | | 25,037 | |
| | 85,043 | | GNMA I Pool #487108 | | 6.000 | % | | | 04/15/29 | | | 97,984 | |
| | 87,582 | | GNMA I Pool #489377 | | 6.375 | % | | | 03/15/29 | | | 99,792 | |
| | 70,796 | | GNMA I Pool #509930 | | 5.500 | % | | | 06/15/29 | | | 79,820 | |
| | 81,036 | | GNMA I Pool #509965 | | 5.500 | % | | | 06/15/29 | | | 91,326 | |
| | 27,773 | | GNMA I Pool #595606 | | 6.000 | % | | | 11/15/32 | | | 31,520 | |
| | 2,158 | | GNMA I Pool #602377 | | 4.500 | % | | | 06/15/18 | | | 2,268 | |
| | 1,359 | | GNMA I Pool #603377 | | 4.500 | % | | | 01/15/18 | | | 1,427 | |
| | 224,101 | | GNMA I Pool #615272 | | 4.500 | % | | | 07/15/33 | | | 249,010 | |
| | 70,066 | | GNMA I Pool #615403 | | 4.500 | % | | | 08/15/33 | | | 77,400 | |
| | 30,002 | | GNMA I Pool #616829 | | 5.500 | % | | | 01/15/25 | | | 33,800 | |
| | 51,667 | | GNMA I Pool #623190 | | 6.000 | % | | | 12/15/23 | | | 58,586 | |
| | 231,085 | | GNMA I Pool #624600 | | 6.150 | % | | | 01/15/34 | | | 262,658 | |
| | 146,202 | | GNMA I Pool #626755 | | 5.000 | % | | | 03/15/35 | | | 164,012 | |
| | 48,729 | | GNMA I Pool #640940 | | 5.500 | % | | | 05/15/35 | | | 56,792 | |
| | 205,582 | | GNMA I Pool #644970 | | 5.000 | % | | | 06/15/35 | | | 228,119 | |
| | 109,164 | | GNMA I Pool #647406 | | 5.000 | % | | | 09/15/35 | | | 121,655 | |
| | 158,920 | | GNMA I Pool #650493 | | 5.000 | % | | | 01/15/36 | | | 176,956 | |
| | 29,095 | | GNMA I Pool #677162 | | 5.500 | % | | | 08/15/23 | | | 31,950 | |
| | 392,039 | | GNMA I Pool #678649 | | 4.000 | % | | | 12/15/39 | | | 423,850 | |
| | 211,487 | | GNMA I Pool #697999 | | 4.500 | % | | | 02/15/24 | | | 228,128 | |
| | 469,600 | | GNMA I Pool #711286 | | 6.500 | % | | | 10/15/32 | | | 536,244 | |
| | 155,133 | | GNMA I Pool #760369 | | 5.000 | % | | | 08/15/41 | | | 171,885 | |
| | 140,243 | | GNMA I Pool #782771 | | 4.500 | % | | | 09/15/24 | | | 151,523 | |
| | 190,168 | | GNMA I Pool #AB1821 | | 3.250 | % | | | 10/15/42 | | | 194,957 | |
| | 825,990 | | GNMA II Pool #003066 | | 5.500 | % | | | 04/20/31 | | | 932,452 | |
| | 42,111 | | GNMA II Pool #003284 | | 5.500 | % | | | 09/20/32 | | | 47,913 | |
| | 80,372 | | GNMA II Pool #003346 | | 5.500 | % | | | 02/20/33 | | | 91,745 | |
| | 25,874 | | GNMA II Pool #003401 | | 4.500 | % | | | 06/20/33 | | | 28,152 | |
| | 190,759 | | GNMA II Pool #003403 | | 5.500 | % | | | 06/20/33 | | | 218,064 | |
| | 45,908 | | GNMA II Pool #003554 | | 4.500 | % | | | 05/20/34 | | | 49,960 | |
| | 105,448 | | GNMA II Pool #003689 | | 4.500 | % | | | 03/20/35 | | | 114,552 | |
| | 220,397 | | GNMA II Pool #003931 | | 6.000 | % | | | 12/20/36 | | | 250,592 | |
| | 15,678 | | GNMA II Pool #004284 | | 5.500 | % | | | 11/20/38 | | | 16,804 | |
| | 180,322 | | GNMA II Pool #004291 | | 6.000 | % | | | 11/20/38 | | | 207,348 | |
| | 118,206 | | GNMA II Pool #004412 | | 5.000 | % | | | 04/20/39 | | | 125,608 | |
| | 237,372 | | GNMA II Pool #004561 | | 6.000 | % | | | 10/20/39 | | | 272,972 | |
| | 155,713 | | GNMA II Pool #004702 | | 3.500 | % | | | 06/20/25 | | | 163,151 | |
| | 225,365 | | GNMA II Pool #004753 | | 8.000 | % | | | 08/20/30 | | | 250,806 | |
| | 758,670 | | GNMA II Pool #004838 | | 6.500 | % | | | 10/20/40 | | | 888,221 | |
| | 86,141 | | GNMA II Pool #575787 | | 5.760 | % | | | 03/20/33 | | | 96,988 | |
| | 141,902 | | GNMA II Pool #610116 | | 5.760 | % | | | 04/20/33 | | | 159,722 | |
| | 62,298 | | GNMA II Pool #610143 | | 5.760 | % | | | 06/20/33 | | | 70,119 | |
| | 203,896 | | GNMA II Pool #648541 | | 6.000 | % | | | 10/20/35 | | | 221,847 | |
| | 95,759 | | GNMA II Pool #748939 | | 4.000 | % | | | 09/20/40 | | | 103,192 | |
| | 797,443 | | GNMA II Pool #781642 | | 5.500 | % | | | 08/20/33 | | | 910,154 | |
| | 335,822 | | GNMA II Pool #MA2295 | | 4.500 | % | | | 10/20/44 | | | 348,229 | |
| | 1,961,908 | | GNMA II Pool #MA2681 | | 5.000 | % | | | 03/20/45 | | | 2,155,106 | |
| | 167,170 | | GNMA Pool #675477 | | 5.000 | % | | | 06/15/38 | | | 185,658 | |
| | 537,737 | | GNMA Pool #752112 | | 3.500 | % | | | 01/15/33 | | | 565,199 | |
| | 207,149 | | GNMA, Series 2002-33, Class ZD | | 6.000 | % | | | 05/16/32 | | | 236,713 | |
| | | | | | | | | | | | | | |
| See Notes to Financial Statements. | 30 | |
Wright Current Income Fund (WCIF)
Portfolio of Investments – As of June 30, 2015
| | Face Amount | | Description | | Coupon Rate | | | Maturity Date | | | Value | |
| | 68,265 | | GNMA, Series 2002-45, Class QE | | 6.500 | % | | | 06/20/32 | | $ | 80,182 | |
| | 59,119 | | GNMA, Series 2002-7, Class PG | | 6.500 | % | | | 01/20/32 | | | 69,442 | |
| | 153,576 | | GNMA, Series 2003-103, Class PC | | 5.500 | % | | | 11/20/33 | | | 175,311 | |
| | 116,296 | | GNMA, Series 2003-26, Class MA | | 5.500 | % | | | 03/20/33 | | | 126,049 | |
| | 154,000 | | GNMA, Series 2003-46, Class HA | | 4.500 | % | | | 06/20/33 | | | 167,208 | |
| | 179,000 | | GNMA, Series 2003-46, Class MA | | 5.000 | % | | | 05/20/33 | | | 193,690 | |
| | 480,783 | | GNMA, Series 2003-46, Class ND | | 5.000 | % | | | 06/20/33 | | | 528,419 | |
| | 435,943 | | GNMA, Series 2003-57, Class C | | 4.500 | % | | | 04/20/33 | | | 485,457 | |
| | 111,000 | | GNMA, Series 2003-84, Class PC | | 5.500 | % | | | 10/20/33 | | | 124,588 | |
| | 57,451 | | GNMA, Series 2004-16, Class GB | | 5.500 | % | | | 06/20/33 | | | 59,722 | |
| | 211,000 | | GNMA, Series 2005-13, Class BE | | 5.000 | % | | | 09/20/34 | | | 230,831 | |
| | 756,397 | | GNMA, Series 2005-17, Class GE | | 5.000 | % | | | 02/20/35 | | | 851,331 | |
| | 282,722 | | GNMA, Series 2005-49, Class B | | 5.500 | % | | | 06/20/35 | | | 317,171 | |
| | 227,000 | | GNMA, Series 2005-51, Class DC | | 5.000 | % | | | 07/20/35 | | | 247,319 | |
| | 82,385 | | GNMA, Series 2005-93, Class BH | | 5.500 | % | | | 06/20/35 | | | 93,456 | |
| | 43,465 | | GNMA, Series 2007-18, Class B | | 5.500 | % | | | 05/20/35 | | | 49,312 | |
| | 1,172,000 | | GNMA, Series 2007-6, Class LE | | 5.500 | % | | | 02/20/37 | | | 1,304,593 | |
| | 122,420 | | GNMA, Series 2007-68, Class NA | | 5.000 | % | | | 11/20/37 | | | 135,129 | |
| | 71,954 | | GNMA, Series 2007-70, Class PE | | 5.500 | % | | | 11/20/37 | | | 80,083 | |
| | 240,000 | | GNMA, Series 2008-26, Class JP | | 5.250 | % | | | 03/20/38 | | | 270,038 | |
| | 300,000 | | GNMA, Series 2008-35, Class EH | | 5.500 | % | | | 03/20/38 | | | 334,511 | |
| | 314,000 | | GNMA, Series 2008-65, Class CM | | 5.000 | % | | | 08/20/38 | | | 349,540 | |
| | 1,341,000 | | GNMA, Series 2008-65, Class PG | | 6.000 | % | | | 08/20/38 | | | 1,544,994 | |
| | 157,000 | | GNMA, Series 2009-47, Class LT | | 5.000 | % | | | 06/20/39 | | | 177,028 | |
| | 592,654 | | GNMA, Series 2009-57, Class VB | | 5.000 | % | | | 06/16/39 | | | 673,471 | |
| | 706,000 | | GNMA, Series 2009-93, Class AY | | 5.000 | % | | | 10/20/39 | | | 786,329 | |
| | 2,000,000 | | GNMA, Series 2010-116, Class PB | | 5.000 | % | | | 06/16/40 | | | 2,340,312 | |
| | 350,000 | | GNMA, Series 2010-89, Class BG | | 4.000 | % | | | 07/20/40 | | | 376,844 | |
| | 527,433 | | GNMA, Series 61, Class ZQ | | 6.000 | % | | | 08/16/39 | | | 685,107 | |
| Total Agency Mortgage-Backed Securities (identified cost, $61,885,067) | | $ | 63,037,977 | |
OTHER US. GOVERNMENT GUARANTEED - 2.6% |
INDUSTRIALS - 2.6% |
| $ | 1,536,000 | | Vessel Management Services, Inc. | | 5.125 | % | | | 04/16/35 | | $ | 1,772,111 | |
| Total Other U.S. Government Guaranteed (identified cost, $1,766,411) | | $ | 1,772,111 | |
| TOTAL FIXED INCOME INVESTMENTS (identified cost, $63,651,478) — 96.0% | | $ | 64,810,088 | |
SHORT-TERM INVESTMENTS - 3.9% |
| $ | 2,634,407 | | Fidelity Government Money Market Fund, 0.01% (1) | | | | | | | | $ | 2,634,407 | |
| TOTAL SHORT-TERM INVESTMENTS (identified cost, $2,634,407) — 3.9% | | $ | 2,634,407 | |
| TOTAL INVESTMENTS (identified cost, $66,285,885) — 99.9% | | $ | 67,444,495 | |
| OTHER ASSETS, IN EXCESS OF LIABILITIES — 0.1% | | | 73,132 | |
| NET ASSETS — 100.0% | | $ | 67,517,627 | |
FHLMC — Federal Home Loan Mortgage Corporation
FNMA — Federal National Mortgage Association
GNMA — Government National Mortgage Association
| (1) | Variable rate security. Rate presented is as of June 30, 2015. |
| See Notes to Financial Statements. | 31 | |
Wright Current Income Fund (WCIF)
Portfolio of Investments – As of June 30, 2015
| Portfolio Composition by Security Type |
| % of total investments at June 30, 2015 |
| Agency Mortgage-Backed Securities | 93.5% |
| Other U.S. Government Guaranteed | 2.6% |
| Short-Term Investments | 3.9% |
| See Notes to Financial Statements. | 32 | |
Wright Current Income Fund (WCIF)
| STATEMENT OF ASSETS AND LIABILITIES |
| As of June 30, 2015 |
| | | | | | | |
| ASSETS: | | | FALSE | |
| | Investments, at value | | | | |
| | (identified cost $66,285,885) (Note 1A) | | $ | 67,444,495 | ###### |
| | Receivable for fund shares sold | | | 7,514 | |
| | Dividends and interest receivable | | | 262,203 | |
| | Prepaid expenses and other assets | | | 23,628 | |
| | Total assets | | $ | 67,737,840 | |
| | | | | | | |
| LIABILITIES: | | | | |
| | Payable for fund shares reacquired | | $ | 83,413 | |
| | Distributions payable | | | 113,807 | |
| | Accrued expenses and other liabilities | | | 22,993 | |
| | Total liabilities | | $ | 220,213 | |
| NET ASSETS | | $ | 67,517,627 | |
| | | | | | | |
| NET ASSETS CONSIST OF: | | | | |
| | Paid-in capital | | $ | 70,516,488 | |
| | Accumulated net realized loss on investments | | | (3,739,881 | ) |
| | Distributions in excess of net investment income | | | (417,590 | ) |
| | Unrealized appreciation on investments | | | 1,158,610 | |
| | Net assets applicable to outstanding shares | | $ | 67,517,627 | |
| | | | | | | |
| SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED) | | | 7,166,861 | |
| | | | | | | |
| NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST | | $ | 9.42 | |
| | | | | | | |
| STATEMENT OF OPERATIONS |
| For the Six Months Ended June 30, 2015 |
| | | | | | | |
| INVESTMENT INCOME (Note 1C) | | | FALSE | |
| | Interest income | | $ | 1,069,624 | |
| 7E+07 | Dividend income | | | 112 | |
| | Total investment income | | $ | 1,069,736 | |
| | | | | | | |
| Expenses – | | | | |
| | Investment adviser fee (Note 3) | | $ | 149,068 | |
| | Administrator fee (Note 3) | | | 29,814 | |
| | Trustee expense (Note 3) | | | 8,801 | |
| | Custodian fee | | | 3,335 | |
| | Accountant fee | | | 20,713 | |
| | Distribution expenses (Note 4) | | | 82,815 | |
| | Transfer agent fee | | | 14,625 | |
| | Printing | | | 66 | |
| | Shareholder communications | | | 4,075 | |
| | Audit services | | | 9,967 | |
| | Legal services | | | 15,958 | |
| | Compliance services | | | 3,611 | |
| | Registration costs | | | 11,473 | |
| | Miscellaneous | | | 38,474 | |
| | Total expenses | | $ | 392,795 | |
| | | | | | | |
| Deduct – | | | | |
| | Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4) | | $ | (94,650 | ) |
| | Net expenses | | $ | 298,145 | |
| | Net investment income | | $ | 771,591 | |
| | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |
| | Net realized gain on investment transactions | | $ | 110,517 | |
| | Net change in unrealized appreciation (depreciation) on investments | | | (289,350 | ) |
| | Net realized and unrealized loss on investments | | $ | (178,833 | ) |
| | Net increase in net assets from operations | | $ | 592,758 | |
| | | | | | | |
| See Notes to Financial Statements. | 33 | |
Wright Current Income Fund (WCIF)
| | | | | | | | | | | |
| | | | Six Months Ended | | Year Ended | |
| STATEMENTS OF CHANGES IN NET ASSETS | | June 30, 2015 | | December 31, 2014 | |
| INCREASE (DECREASE) IN NET ASSETS: | | | | | | | | | |
From operations – | | | | | | | | | |
| | Net investment income | | $ | 771,591 | | | $ | 1,424,346 | | |
| 0 | Net realized gain on investment transactions | | | 110,517 | | | | 318,848 | | |
| | Net change in unrealized appreciation (depreciation) on investments | | | (289,350 | ) | | | 878,219 | | |
| | Net increase in net assets from operations | | $ | 592,758 | | | $ | 2,621,413 | | |
| Distributions to shareholders (Note 2) | | | | | | | | | |
| | From net investment income | | $ | (1,189,181 | ) | | $ | (2,234,588 | ) | |
| | Total distributions | | $ | (1,189,181 | ) | | $ | (2,234,588 | ) | |
| Net increase in net assets resulting from fund share transactions (Note 6) | | $ | 2,160,128 | | | $ | 6,190,538 | | |
| Net increase in net assets | | $ | 1,563,705 | | | $ | 6,577,363 | | |
| ## | | | | | | | | | | |
| NET ASSETS: | | | | | | | | | |
| | At beginning of period | | | 65,953,922 | | | | 59,376,559 | | |
| | At end of period | | $ | 67,517,627 | | | $ | 65,953,922 | | |
| | | | | | | | | | | |
| DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD | | $ | (417,590 | ) | | $ | - | | |
| | | | | | | | | | | |
| See Notes to Financial Statements. | 34 | |
Wright Current Income Fund (WCIF)
| These financial highlights reflect selected data for a share outstanding throughout each period. | | | | | | |
| | | | | | | |
| | | Six Months Ended June 30, | Years Ended December 31, |
| FINANCIAL HIGHLIGHTS | 2015 | | 2014 | 2013 | 2012 | 2011 | 2010 |
| | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | $ | 9.500 | | | $ | 9.440 | | $ | 10.010 | | $ | 10.100 | | $ | 9.910 | | $ | 9.830 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (1) | | 0.110 | | | | 0.225 | | | 0.173 | | | 0.225 | | | 0.303 | | | 0.377 | |
| Net realized and unrealized gain (loss) | | (0.020 | ) | | | 0.188 | | | (0.365 | ) | | 0.081 | | | 0.302 | | | 0.175 | |
| | Total income (loss) from investment operations | | 0.090 | | | | 0.413 | | | (0.192 | ) | | 0.306 | | | 0.605 | | | 0.552 | |
| | | | | | | | | | | | | | | | | | | | |
| Less distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | (0.170 | ) | | | (0.353 | ) | | (0.378 | ) | | (0.396 | ) | | (0.415 | ) | | (0.472 | ) |
| Net asset value, end of period | $ | 9.420 | | | $ | 9.500 | | $ | 9.440 | | $ | 10.010 | | $ | 10.100 | | $ | 9.910 | |
Total Return(2) | | 0.94 | %(3) | | 4.44 | % | | (1.95 | )% | | 3.06 | % | | 6.22 | % | | 5.70 | % |
Ratios/Supplemental Data(5): | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $67,518 | | | $65,954 | | $59,377 | | $79,454 | | $61,325 | | $40,584 | |
| Ratios (As a percentage of average daily net assets): |
| Net expenses | | 0.90 | %(4) | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % |
| Net investment income | | 2.33 | %(4) | 2.37 | % | 1.77 | % | 2.23 | % | 3.03 | % | 3.79 | % |
| Portfolio turnover rate | | 21 | %(3) | 27 | % | 39 | % | 27 | % | 50 | % | 54 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | For the six months ended June 30, 2015, and for the years ended December 31, 2014, 2013, 2012, 2011 and 2010 | For the six months ended June 30, 2015, and for the years ended December 31, 2014, 2013, 2012, 2011 and 2010 | | | | | | | | | |
| (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: |
| | | 2015 | | 2014 | 2013 | 2012 | 2011 | 2010 |
| | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses | | 1.19 | %(4) | | 1.24 | % | | 1.16 | % | | 1.16 | % | | 1.19 | % | | 1.33 | % |
| Net investment income | | 2.04 | %(4) | | 2.03 | % | | 1.51 | % | | 1.97 | % | | 2.74 | % | | 3.36 | % |
| | | | | | | | | | | | | | | | | | | | | |
| See Notes to Financial Statements. | 35 | |
The Wright Managed Income Trust
Notes to Financial Statements
1. Significant Accounting Policies
Wright Current Income Fund (“WCIF”) (the “Fund”) is a diversified portfolio of 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 following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
A. Investment Valuations – Debt obligations, including listed securities and securities for which quotations are readily available, will normally be valued on the basis of reported trades or market quotations provided by third party pricing services, when these prices are representative of the securities’ market values. For debt securities where market quotations are not readily available, the pricing services will use various techniques that consider factors including, but not limited to, prices or yields of securities with similar characteristics, benchmark yields, broker/dealer quotes, issuer spreads, as well as industry and economic events. Short-term debt securities with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. If short-term debt securities are acquired with a remaining maturity of more than sixty days, they will be valued by a pricing service as described above. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the 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, 2014, WCIF, for federal income tax purposes, had capital loss carryforwards subject to expiration of $160,341, 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. Pursuant to the Code, such capital loss carryforwards will expire as follows:
| December 31, | WCIF |
| 2015 | $160,341 |
The Wright Managed Income Trust
Notes to Financial Statements
As a result of the Regulated Investment Company Modernization Act of 2010, net capital losses realized on or after January 1, 2011 (effective date) may be carried forward indefinitely to offset future realized capital gains; however, post-effective losses must be used before pre-effective capital loss carryforwards with expiration dates. Therefore, it is possible that all or a portion of a fund’s pre-effective capital loss carryforwards could expire unused. In addition to the amounts noted in the table above, WCIF has $1,725,949 available short term capital loss carryforwards and $1,553,718 available long term capital loss carryforwards that have no expiration date.
As of June 30, 2015, 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, 2014, 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, 2015, 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, 2014, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
| | | | WCIF | |
| Capital loss carryforward and post October losses | | $ | (3,572,158 | ) |
| Unrealized appreciation | | | 1,169,720 | |
| Total | | $ | (2,402,438 | ) |
The Wright Managed Income Trust
Notes to Financial Statements
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).
For tax purposes, the prior year post-October loss was $132,150 (realized during the period November 1, 2014 through December 31, 2014) for WCIF. This loss was recognized for tax purposes on the first business day of the Fund’s current fiscal year, January 1, 2015.
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.
| 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, 2015, 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 | $149,068 | 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, 2015, the administrator fee for WCIF amounted to $29,814.
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, 2015, for WCIF were $82,815.
The Wright Managed Income Trust
Notes to Financial Statements
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, 2015, 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, 2016 (excluding interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund’s business). Thereafter, the waiver and reimbursement may be changed or terminated at any time. In addition, Wright and WISDI have voluntarily agreed to further limit the total annual expenses of WCIF to 0.90% of its average daily net assets. Such voluntary limitation may be terminated at any time. Pursuant to these agreements and voluntary limitation, Wright waived and/or reimbursed investment adviser fees of $11,835 for WCIF. WISDI waived distribution fees of $82,815 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, 2015 |
| | WCIF |
| Purchases - | |
| Non-U.S. Government & Agency Obligations | $ - |
| U.S. Government & Agency Obligations | 14,342,151 |
| Sales - | |
| Non-U.S. Government & Agency Obligations | $ 39,000 |
| U.S. Government & Agency Obligations | 13,319,610 |
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, 2015 | 36525 | | | | 42185 | # | # | | | | | 42004 | |
| | | | Six Months Ended June 30, 2015 | | Year Ended December 31, 2014 |
| | | | Shares | | | | Amount | | | Shares | | | | Amount | |
| | WCIF | | | | | | | | | | | | | | |
| | Sold | 1,115,580 | | | $ | 10,621,128 | | | 2,047,812 | | | $ | 19,432,258 | |
| | Issued to shareholders in payment of distributions declared | 53,721 | | | | 512,558 | | | 103,005 | | | | 977,337 | |
| | Redemptions | (942,885 | ) | | | (8,973,558 | ) | | (1,498,967 | ) | | | (14,219,057 | ) |
| | Net increase | 226,416 | | | $ | 2,160,128 | | | 651,850 | | | $ | 6,190,538 | |
| | | | | | | | | | | | | | | | |
7. Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of the investment securities owned at June 30, 2015, as computed on a federal income tax basis, were as follows:
The Wright Managed Income Trust
Notes to Financial Statements
| | Six Months Ended June 30, 2015 |
| | WCIF | |
| Aggregate cost | $ | 66,285,885 | | |
| Gross unrealized appreciation | $ | 1,551,510 | | |
| Gross unrealized depreciation | | (392,900 | ) | |
| Net unrealized appreciation | $ | 1,158,610 | | |
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 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. During the period ended June 30, 2015, the Fund had no outstanding balances pursuant to this line of credit.
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, 2015, 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) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total |
Agency Mortgage-Backed Securities | $ | - | $ | 63,037,977 | $ | - | $ | 63,037,977 |
Other U.S. Government Guaranteed | | - | | 1,772,111 | | - | | 1,772,111 |
| Short-Term Investments | | - | | 2,634,407 | | - | | 2,634,407 |
| Total Investments | $ | - | $ | 67,444,495 | $ | - | $ | 67,444,495 |
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, 2015.
The Wright Managed Income Trust
Notes to Financial Statements
10. New Accounting Pronouncement
In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2015-07 (“ASU 2015-07”) eliminating the requirement for investments measured at net asset value to be categorized within the fair value hierarchy under GAAP and requiring the disclosure of sufficient information to reconcile the fair value of the remaining assets categorized within the fair value hierarchy to the financial statements. ASU 2015-07 is effective for interim and annual reporting periods beginning after December 15, 2015. Management has reviewed the requirements and believes the adoption of ASU 2015-07 will not have a material impact on the financial statements.
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, 2015, events and transactions subsequent to June 30, 2015, 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.
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 2015 (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, 2014. 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 agreement 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.
Board of Trustees
Annual Approval of the Investment Advisory Agreement
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 share 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.
Important Notices Regarding Delivery of Shareholder
Documents, Portfolio Holdings and Proxy Voting
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.
The Wright Managed Blue Chip Investment Funds
(continued from inside front cover)
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 Barclays GNMA Backed Bond Index.
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. |
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) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant The Wright Managed Income Trust (On behalf of Wright Current Income Fund)
By /s/ Peter M. Donovan
Peter M. Donovan
President
Date August 6, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By /s/ Peter M. Donovan
Peter M. Donovan
President
Date August 6, 2015
By /s/ Michael J. McKeen
Michael J. McKeen
Treasurer
Date August 6, 2015
