FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-3668
The Wright Managed Income Trust
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(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Name and Address of Agent for Services)
(617) 482-8260
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(Registrant's Telephone Number)
December 31
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Date of Fiscal Year End
June 30, 2003
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Date of Reporting Period
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Item 1. REPORTS TO STOCKHOLDERS
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
SEMI-ANNUAL REPORT
JUNE 30,2003
THE WRIGHT MANAGED EQUITY TRUST
o Wright Selected Blue Chip Equities Fund
o Wright Major Blue Chip Equities Fund
o Wright International Blue Chip Equities Fund
THE WRIGHT MANAGED INCOME TRUST
o Wright U.S. Treasury Money Market Fund
o Wright U.S. Government Near Term Fund
o Wright U.S. Government Intermediate Fund
o Wright Total Return Bond Fund
o Wright Current Income Fund
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
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THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS CONSISTS OF THREE EQUITY FUNDS
FROM THE WRIGHT MANAGED EQUITY TRUST, A MONEY MARKET FUND AND FOUR OTHER FIXED
INCOME FUNDS FROM THE WRIGHT MANAGED INCOME TRUST. EACH OF THE EIGHT 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 equity portfolios are drawn from investment lists
developed by Wright Investors' Service (Wright). Using bottom-up fundamental
analysis, Wright first identifies companies suitable for fiduciary use as
"investment grade." These investment grade companies are further screened
against Wright's quality standards which have evolved since the 1960s. Those
meeting or exceeding these standards are promoted to the Approved Wright
Investment List or AWIL. These companies, in Wright's opinion, exhibit superior
investment characteristics. There are separate lists for U.S. companies,
non-U.S. companies, and fixed income securities. All the companies on the AWIL
are soundly financed "Blue Chips" with established records of earnings
profitability and equity growth. All have established investment acceptance and
active, liquid markets. Companies which do not meet this quality criteria, but
which are included in a major stock market index and which meet acceptable
marketability and financial strength standards may be used when necessary to
reduce benchmark tracking error but a majority of the stocks in any portfolio
are selected from the Approved Lists.
THREE EQUITY FUNDS
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC) seeks to enhance total investment
return of price appreciation plus income by providing active management of
equities of well-established companies meeting strict quality standards.
Equities selected are limited to those companies whose current operations
reflect defined, quantified characteristics which have been determined to offer
comparatively superior total investment returns over the intermediate term. The
fund attempts to outperform the Standard & Poor's Mid-Cap 400 Index.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC) seeks to enhance total investment
return of price appreciation plus income by providing management of a broadly
diversified portfolio of equities of larger well-established companies meeting
strict quality standards. In selecting companies for this portfolio, Wright
selects, based on quantitative formulae, those companies which are expected to
do better over the intermediate term. The quantitative formulae takes into
consideration factors such as over/under valuation and compatibility with
current market trends. Investments in the portfolio are control weighted in the
selected securities and industries. The fund attempts to outperform the Standard
& Poor's 500 Index.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) 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
meeting strict quality standards. The portfolio may buy common stocks traded on
the securities exchange of the country in which the company is based or it may
purchase American Depositary Receipts (ADR's) traded in the United States. The
portfolio is denominated in U.S. dollars and investors should understand that
fluctuations in foreign exchange rates may impact the value of their investment.
A MONEY MARKET FUND
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) seeks a high rate of current
income but with added safety that comes from limiting its investments to
securities of the U.S. Government and its agencies. There may be an added
advantage to investors that reside in states and municipalities that do not tax
dividend income from mutual funds investing exclusively in U.S. Government
securities.
FOUR FIXED-INCOME FUNDS
WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB) is a diversified portfolio
concentrating on bonds and other obligations of the U.S. Government and U.S.
Government Agencies with an average weighted maturity of between one and three
years. This portfolio is designed to appeal to the investor seeking a high level
of income that is normally somewhat less variable and normally somewhat higher
than that available from short-term money market instruments and who is also
tolerant of modest fluctuation in capital (i.e. compared with somewhat greater
fluctuation likely with longer term fixed income securities). Dividends are
accrued daily and paid monthly.
WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND (WUSGI) seeks a high total return with
an emphasis on income by investing in obligations of the U.S. Government and
U.S. Government Agencies maintaining an average maturity of from two to six
years. The fund does not invest in derivatives. Assets are allocated on the
basis of Wright's economic outlook and expected trend in short-term interest
rates. Dividends are accrued daily and paid monthly.
WRIGHT TOTAL RETURN BOND FUND (WTRB) is a diversified portfolio of investment
grade government and corporate bonds and other debt securities of varying
maturities which, in the Adviser's opinion, will achieve the portfolio objective
of best total return (i.e. the best total of ordinary income plus capital
appreciation). Accordingly, investment selections and maturities may differ
depending on the particular phase of the interest rate cycle. Dividends are
accrued daily and paid monthly.
WRIGHT CURRENT INCOME FUND (WCIF) 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.
TABLE OF CONTENTS
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INVESTMENT OBJECTIVES..............................inside front cover
LETTER TO SHAREHOLDERS..............................................2
MANAGEMENT DISCUSSION...............................................3
FINANCIAL STATEMENTS
THE WRIGHT MANAGED EQUITY TRUST
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
Portfolio of Investments..................10
Statement of Assets & Liabilities.........13
Statement of Operations...................13
Statement of Changes in Net Assets........14
Financial Highlights......................15
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
Portfolio of Investments..................16
Statement of Assets & Liabilities.........19
Statement of Operations...................19
Statement of Changes in Net Assets........20
Financial Highlights......................21
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
Portfolio of Investments..................22
Statement of Assets & Liabilities.........24
Statement of Operations...................24
Statement of Changes in Net Assets........25
Financial Highlights......................26
NOTES TO FINANCIAL STATEMENTS...............27
THE WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY MONEY MARKET FUND
Portfolio of Investments..................32
Statement of Assets & Liabilities.........33
Statement of Operations...................33
Statement of Changes in Net Assets........34
Financial Highlights......................35
WRIGHT U.S. GOVERNMENT NEAR TERM FUND
Portfolio of Investments..................36
Statement of Assets & Liabilities.........37
Statement of Operations...................37
Statement of Changes in Net Assets........38
Financial Highlights......................39
WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND
Portfolio of Investments..................40
Statement of Assets & Liabilities.........41
Statement of Operations...................41
Statement of Changes in Net Assets........42
Financial Highlights......................43
WRIGHT TOTAL RETURN BOND FUND
Portfolio of Investments..................44
Statement of Assets & Liabilities.........47
Statement of Operations...................47
Statement of Changes in Net Assets........48
Financial Highlights......................49
WRIGHT CURRENT INCOME FUND
Portfolio of Investments..................50
Statement of Assets & Liabilities.........54
Statement of Operations...................54
Statement of Changes in Net Assets........55
Financial Highlights......................56
NOTES TO FINANCIAL STATEMENTS...............57
LETTER TO SHAREHOLDERS
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July 2003
Dear Shareholders:
After making a second (or third) bottom in early March, the U.S. stock
market rebounded into its best quarterly showing since 1998 during the second
quarter of 2003, with the S&P 500 ending June up 14.9% for the quarter and 10.8%
for the half. While we cannot say definitively that the great bear market of
2000-03 is finally over, it is beginning to look as if investors have turned
their focus to the better economic growth and higher earnings forecast for the
second half and in 2004. Bond performance, while positive, was a good deal
tamer, as the Lehman Aggregate had a 3.9% return for the first half.
After two quarters of laggard performance, the S&P mid-caps (17%) and
S&P small-caps (20%) outperformed the S&P 500 big-cap benchmark in the second
quarter of 2003; for the entire first half, mid-caps and small-caps had a slight
edge on the S&P 500. Partly as a result of the strength of the euro - which
appreciated by more than 5% relative to the dollar in Q2 - European markets led
the other regions of the world with an average return of 22% in dollars,
followed by non-Japan Asia (15%), and Japan (12%). For the half, non-Japan Asian
markets were strongest, followed by the U.S., Europe, and Japan.
The better tone in the markets since March has been the result of the
successful prosecution of the war with Iraq, passage of $350 billion in tax
cuts, signs of some stirring in the economic recovery and, late in June, another
25 basis-point interest rate reduction from the Federal Reserve. First-quarter
GDP growth came in at a 1.4% annual rate, matching the fourth quarter's sluggish
rate, and Q2 looks only modestly better - maybe 2.5% thanks to some increase in
the consumer sector. The tax cuts of 2003 should provide a timely boost to
disposable personal incomes, which have recently slowed to a 2% real growth rate
from twice that level 12 months ago. The question that won't go away is: can
consumers sustain the economy's momentum until growth picks up in business
investment, which is still relatively soft following the investment bubble of
the late 1990s. To date, durable goods order rates suggest only slight
improvement in business spending.
Nevertheless, consumer attitudes are quite a bit more positive than
they were prior to the beginning of the war in Iraq, if not yet back to year-ago
levels. Along with this improved consumer sentiment, the stock market's bounce
off last year's bottom, abiding strength in residential real estate, low
interest rates and tax reduction all support our view that the U.S. economy is
poised for more respectable economic growth. In addition, weekly unemployment
claims have stabilized, energy prices have come off their highs, and the lower
dollar points to better export growth.
Worries in the markets about deflation - the steady erosion of product
prices (a la Japan) that threatens profits and jobs - receded as the second
quarter ended, although the Federal Reserve still rates deflation a greater risk
than renewed inflation. In the bond market, yields on 10-year Treasury bonds
fell roughly 30 basis points during the second quarter, hitting 45-year lows in
mid-June; and yields on corporate bonds fell even more, contributing to Q2
returns of close to 5%, nearly twice what U.S. Treasury bonds returned. The
narrowing of credit spreads may be the best evidence we have that corporate
profits are on the mend; higher stock prices and, over the final three weeks of
the first half, rising Treasury bond yields lend support to the prospect of
gathering strength in the economy. True, the expansion still looks like it will
be on the moderate side, but there is very little risk of the Fed moving to slow
things down any time soon.
While better markets and improving economic conditions may be in only
their early stages, one must guard against expecting that the new cycle will
progress along the lines of the durable cycles of the 1980s and 1990s. On
balance, though, the investment environment ahead looks reasonably positive for
stocks, if not up to the double-digit percentage returns typical over the past
two decades. Bond market prospects are more limited, although returns on
investment-grade corporate bonds should stay ahead of inflation over the coming
five years.
Sincerely,
/s/ Peter M. Donovan
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Peter M. Donovan
President
MANAGEMENT DISCUSSION
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EQUITY FUNDS
After stocks moved lower in the first quarter of 2003, the second quarter was a
good one for stocks, with the S&P 500 posting its best performance since the
fourth quarter of 1998. Early in the year, investors were focused on the
uncertainties posed by the pending war with Iraq. The initial trigger for the
rally that began in mid-March was the expectation that the ouster of Saddam
Hussein's regime in Iraq would proceed swiftly. The uptrend persisted through
the second quarter, as investors began to anticipate a pickup in the pace of
economic recovery. The Bush tax cut, which included a tax cut on dividends, also
helped stocks. Equity investors were able to shrug off the threat of deflation
hinted at by the Federal Reserve about midway through the second quarter.
The S&P 500 rose nearly 11% in the first half of 2003. At mid-year, the
benchmark stock index was 25% above last October's low, with virtually all of
the gain achieved since mid-March. The Dow didn't do quite as well as the S&P
500, rising about 8% for the six months. The Nasdaq Composite jumped 22% in the
first two quarters of 2003 and at midyear was up 46% from its low - although
still down 67% from its March 2000 high. During the recent rally, the stock
market's gains were broad based, with equity investors rediscovering a taste for
riskier stocks. For example, in the second quarter, smaller was generally
better, with the S&P MidCap 400 (+17%), S&P SmallCap 600 (+20%) and the Russell
2000 (+23%) all outperforming the S&P 500 large-cap benchmark. In a pattern
reminiscent of the "rubbish rally" of the fourth quarter of 2002, investors
preferred the lower-priced, lower-quality stocks within the S&P 500 in Q2.
Stocks in the bottom half of the S&P 500 by price, market cap, and Wright
Quality Rating outperformed those in the top half. In dollar terms, foreign
stocks did a little better on average than U.S. stocks in the second quarter,
but for the first half of 2003, the MSCI World ex U.S. index rose 8% in price,
lagging the S&P 500's 11%.
Despite the prospects for modestly better economic growth in the months ahead, a
pause in the stock market's climb, or even some giveback, wouldn't be too
surprising. With the market rising so far so fast, one has to be a little
concerned that stock prices have gotten ahead of the fundamentals. In fact,
stocks have been treading water in the early part of the third quarter. The next
upleg in the stock market may take some persistently positive economic news to
get firmly established. Even so, commitments made to high-quality equities at
the present time should prove to be rewarding over the next 12 to 18 months.
2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Total Return 6 Mos Year Year Year Year Year Year Year Year Year Year Year Year
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Wright Selected Blue Chip Fund
(WSBC) 8.9% -17.0%-10.2% 10.8% 5.8% 0.1% 32.7% 18.6% 30.3% -3.5% 2.1% 4.7% 36.0%
Wright Major Blue Chip Fund
(WMBC) 9.1% -24.5%-16.9% -12.5% 24.0% 20.4% 33.9% 17.6% 29.0% -0.7% 1.0% 8.0% 38.9%
Wright International Blue Chip Fund
(WIBC) 10.4% -14.5%-24.2% -17.6% 34.3% 6.1% 1.5% 20.7% 13.6% -1.6% 28.2% -3.9% 17.2%
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
The Wright Selected Blue Chip Fund (WSBC) gained 8.9% during the first half of
the year, as compared to a 12.4% return for its benchmark, the S&P MidCap 400.
Mid cap stocks rose more than large cap stocks during the first half of the year
as a strong second quarter for mid- and small-cap stocks led the equity market
rebound. The breadth of the market's rise during the first half of the year is
reflected in the fact that all ten sectors of the S&P MidCap 400 had a positive
return, led by Healthcare (+25%), Telecomm Services (+19%) and Technology
(+17%).
The WSBC Fund earned positive relative performance from Financials, as a slight
overweight and positive stock selection in diversified financials contributed to
relative performance. The Fund also benefited from better stock selection in
Utilities and Telecomm Services. The WSBC Fund was hurt most by its
underperformance in Consumer Discretionary and Information Technology stocks,
which rose but did not keep up with the benchmark. Most of the Fund's
underperformance came during the second quarter compared to the S&P MidCap 400
and was largely due to investor preference for small, low-priced and low-quality
stocks. The WSBC Fund did not hold some of the best-performing companies in the
benchmark (such as Millennium Pharmaceuticals, +100%, and Powerwave Technology,
+81%) because of their poor fundamentals. The fund's performance was helped by
the strong performance of Sandisk (+141%) and E*Trade (+102). While quality
stocks may lag for short periods, in the long run they provide the best
investment returns. The WSBC Fund overall has mid-cap stocks with stronger
balance sheets than the S&P MidCap benchmark average. Historical and projected
earnings growth rates are also better. The superior growth prospects of the WSBC
Fund's holdings are currently valued at a lower P/E multiple than the S&P MidCap
400's.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
The Wright Major Blue Chip Fund (WMBC) is managed as a blend of the mostly
large-cap growth and value stocks in the S&P 500, which is its primary
benchmark. After outperforming the S&P 500 in the first quarter, the WMBC
returned 12.1% in the second quarter, a solid return though somewhat behind the
15.4% for the S&P 500 and the 14.7% for an average of 194 large-cap blend funds
in the Morningstar database. In the first half of 2003, the WMBC Fund returned
9.1%, compared to 11.8% for the S&P 500 and 10.8% for the Morningstar benchmark.
The Fund's best-performing sectors for the first six months of the year were
Financial (14.2%), Information Technology (13.6%), and Healthcare (11.1%). The
worst-performing sectors for the same period were Materials (-7.3%), Consumer
Staples (-1.6%), and Telecom Services (5.8%).
The WMBC Fund's make-up is tilted toward the larger, higher-quality issues in
the S&P 500, and this worked against it in the second quarter. Examples of the
type of high-quality issues held in the Fund that underperformed the benchmark
were Johnson & Johnson (-10.3%) and 3M (-0.3%). Both stocks did well in Q1
returning 8.2% and 6.0%, respectively, while the S&P declined 3.2%. On the other
hand, in Q2 Avaya and Allegheny Technologies, which the Fund does not hold and
are not expected to be profitable this year, returned 217% and 130%,
respectively. The Fund did benefit from holding some of the better-performing
energy stocks in the April-June period. Also among the Fund's positive
contributors in the second quarter were Best Buy (+63%), AOL Time Warner (+48%),
Citigroup (+25%) and Intel (+28.0%).
In June, investors seemed to shift more toward the quality sector of the market,
and that trend appeared to be holding in early July. The Fund's positioning
continues to reflect the philosophy that quality securities provide better
investment returns over the long run. At June 30, the holdings in the WBC Fund
were on average more profitable and faster growing than those in the S&P 500 and
also had stronger balance sheets. Forecast earnings growth for the Fund holdings
was better, while the forward P/E was about the same.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
In a change from the first quarter, international stock markets did better than
the U.S. market in Q2. Solid local currency returns were augmented by the
depreciation of the dollar. The Wright International Blue Chip Fund (WIBC) is
ahead of the benchmarks for the first half of 2003, returning 10.4% compared
with 10.3% for the MSCI World excluding U.S. index and 8.4% for the Morningstar
group.
At the beginning of the year we felt that valuations were quite attractive in
Europe, the European Central Banks would need to provide monetary stimulation,
oil prices would decline and not plunge from over $30 a barrel to around $20-$25
and lastly that the Euro remained undervalued. Against this backdrop, WIBC was
overweighted in the Eurozone, overweighted in the Euro and overweighted in
Energy and Banks. This strategy paid off in the first six months with banks,
insurance and energy groups being the top performing industry groups in the
Fund. WIBC returns were positively affected by its holdings in Barclays, Bank of
Nova Scotia, Cepsa, E.ON and Endesa. On the other hand the Fund's return was
detracted by its holdings in Sony, which had disappointing results due to soft
sales in U.S. and the weaker U.S. dollar.
In terms of country contribution the Fund was helped by its exposure in
Eurozone, United Kingdom and Hong Kong. The rally in Japan detracted from
performance as the Fund was underweighted in Japan and also because the Japanese
market returns were driven partly by poor-quality, financially troubled banks
and financial institutions. We remain cautiously optimistic on the prospects in
Japan. Going forward the Fund will continue with its focus on high-quality
issues and may add selectively to its Japanese exposure.
FIXED-INCOME FUNDS
After a volatile first quarter, bond prices rallied in the second in the wake of
the FOMC's May 6 meeting. Although the Fed left rates unchanged in May, it noted
that there was a risk, which it described as small, that the economy might
undergo a period of deflation, or something close to it, which also implies
economic stagnation. The Fed appeared to be making the point that it would do
whatever was needed to keep deflation at bay. Bond investors assumed that this
would include buying long Treasury securities to reduce long-term interest rates
if it ran out of ammunition at the short end of the yield curve. (This
assumption has since come into question.) The 10-year Treasury yield began the
year at about 3.8%, got close to 4.2% in the first quarter, then moved to as low
as 3.1% in June before bonds gave back some of their gains late in the quarter.
The Lehman U.S. aggregate fixed-income index had a return of 3.9% in first half
of 2003. Corporates led the fixed-income market with a 7.7% return. BBB-rated
issues topped the investment-grade corporate sector, returning more than 10%.
Treasury bonds returned 3.7%, with longer maturities doing better than shorter.
Returns on government agency bonds averaged 3.4% for the six months. With heavy
prepayments (the result of refinancing prompted by low interest rates) dimming
their appeal, mortgage-backed issues lagged with a return of less than 2.0% in
the first half of 2003.
Bond market prospects appear to be limited in the near term. In the past few
weeks, bonds have given up some of their recent gains in response to signs of
improving economic growth and higher federal budget deficits. Even though the
risk of significantly higher inflation is very small and we expect the Fed to
keep interest rates low for some time, some further rise in bond yields is
likely going forward. We continue to look for spread products to add return to
fixed-income portfolios.
2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
Total Return 6 Mos. Year Year Year Year Year Year Year Year Year Year Year Year
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Wright U.S. Treasury Money Market
Fund (WTMM) 0.4% 1.6% 3.7% 5.4% 4.3% 4.7% 4.8% 4.9% 5.3% 3.6% 2.5% 3.3% n.a.
Wright U.S. Gov't. Near-Term
Bond Fund (WNTB) 1.0% 5.4% 6.8% 6.9% 1.9% 6.0% 5.9% 3.9% 11.9% -3.1% 8.0% 6.3% 13.1%
Wright U.S. Gov't. Intermediate
Bond Fund (WUSGI) 2.4% 8.1% 5.4% 12.6% -4.0% 10.0% 9.1% -1.2% 28.2% -8.6% 15.9% 7.1% 17.6%
Wright Total Return Bond Fund
(WTRB) 3.9% 9.0% 5.0% 10.6% -3.9% 9.6% 9.3% 0.9% 22.0% -6.6% 11.0% 7.1% 15.4%
Wright Current Income Fund
(WCIF) 1.1% 7.7% 7.2% 10.3% 0.5% 6.5% 8.6% 4.4% 17.5% -3.3% 6.6% 6.7% 15.3%
WRIGHT U.S. TREASURY MONEY MARKET FUND
The Wright U.S. Treasury Money Market Fund (WTMM) invests primarily in U.S.
government issues that are backed by the full faith and credit of the U.S.
government (U.S. Treasury securities). During the first half of 2003, yields on
90-day Treasury bills dipped under 1.0%. The Federal Reserve held its target fed
funds rate at 1.25%, until late June, when it cut the rate to 1.0%, the lowest
since the 1950s. WTMM returned 0.4% for the first six months of 2003, slightly
less than the 0.6% return on 90-day T-bills but ahead of the 0.3% return
reported for the average Treasury money market fund. In our view, if the
economic environment does improve before year-end as we expect, short-term rates
could begin to move higher as investors anticipate Fed tightening.
WRIGHT U.S. GOVERNMENT NEAR TERM FUND
The Wright U.S. Government Near-Term Fund (WNTB) is positioned to offer a better
return than money market funds with less sensitivity to changes in interest
rates than longer maturity funds. The fund invests primarily in U.S. government
issues and maintains an average maturity of between one and three years. WNTB
returned 1.0% over the first two quarters of 2003, compared to 1.4% for both the
Lehman and Morningstar benchmarks. However, WNTB outperformed the average money
market fund's 0.3% for the first six months. The fund also offered an indicated
annual yield of 2.9% at the end of June.
After reaching a high of 1.86% early in the year, the yield on the two-year
Treasury got as low as 1.08% before finishing the second quarter at 1.30%. The
Fund's duration of 1.6 years at the end of the second quarter was slightly
shorter than the Lehman 1-3 year government index's duration of 1.7 years. The
shorter duration stance hampered the Fund's performance a bit, but WIS continues
to lean toward short duration in anticipation of rising interest rates in the
future. At midyear, WNTB was invested 21% in U.S. Treasury securities, 69% in
Government Agency issues, and 10% in mortgage-backed issues. Low Treasury yields
favor the continued use of agency and mortgage-backed issues.
WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND
The Wright U.S. Government Intermediate Fund (WUSGI) is positioned as an
intermediate maturity fund with little credit risk. The fund invests primarily
in U.S. government issues and maintains an average maturity of between two and
six years. For the first half of 2003, WUSGI returned 2.4%, compared to 2.6% for
the Lehman U.S. government intermediate bond index and a 2.4% average return for
115 intermediate government bond funds in the Morningstar database.
The WUSGI Fund is now more than half invested in government agency issues and
also has about a 10% allocation in mortgage-backed issues. The Fund's
overweighting in agency bonds helped the performance relative to the benchmark,
since intermediate agency issues outperformed Treasuries of similar maturity in
the first half of 2003. However, the return on the MBS allocation lagged. Also
having a negative impact was the Fund's shorter duration than the Lehman
benchmark; the Fund's duration was 2.9 years at June 30, compared to 3.2 for the
Lehman government intermediate index. With bond yields expected to rise in the
second half of 2003, the Fund is maintaining a bias toward short duration and an
overweight position in spread products in order to improve returns.
WRIGHT TOTAL RETURN BOND FUND
In the first six months of 2003, the Wright Total Return Bond Fund (WTRB), a
diversified bond fund, returned 3.9%, matching the return of the Lehman U.S.
Aggregate Bond Index but slightly behind the 4.1% return for an average of 139
total return bond funds in the Morningstar database.
The fund's returns were enhanced by its overweight position in corporates, which
was the best-performing sector in the first half of 2003, and an underweight
positioning in mortgage-backed issues, which lagged the rest of the fixed-income
market. At June 30, 2003, the Fund was invested 32% in Corporates; 24% in
Treasuries; 16% in agencies; 23% in mortgage-backed issues; 4% in asset-backed
issues; and less than 1% in cash. In anticipation of an improving economy and
higher interest rates ahead, the Fund has maintained its tilt towards a shorter
maturity and duration target relative to its benchmark (which is helping in the
first few weeks of Q3). The Fund also looks to enhance its return by staying
overweight in corporate issues. A shift back to mortgages from Treasuries is
possible if mortgage spreads become more attractive.
WRIGHT CURRENT INCOME FUND
The Wright Current Income Fund (WCIF) is about 85% invested in GNMA issues
(mortgage-based securities, known as Ginnie Maes, with explicit backing from the
Federal government). Returns on Ginnie Maes lagged the Lehman aggregate return
in the first half of 2003 as low mortgage rates kept prepayment risk high and
reduced these securities' appeal. For the first six months of 2003, WCIF
returned 1.1%, slightly behind the 1.4% return for the Lehman GNMA index and the
1.6% return for the average of 65 Morningstar government mortgage funds.
The WCIF Fund is actively managed to maximize income and minimize principal
fluctuation. To reduce the impact of mortgage prepayments, in the first half of
2003 the WCIF Fund continued to emphasize lower-coupon issues. With the economy
expected to improve, WIS anticipates that interest rates will rise before the
end of 2003. As this happens, the Fund will look for opportunities to shift to
higher-coupon issues, which do better in a rising interest rate environment. At
the end of the second quarter, the WCIF Fund had an indicated annual yield of
4.8% with virtually no credit risk, making it attractive for income-oriented
investors.
U.S. SECURITIES MARKETS -------------------------------------------------------
The Dow Jones Industrial Average chart shows the point changes in the average
which consists of 30 major NYSE industrial companies and is a price-weighted
arithmetic average, with the divisor adjusted for stock splits. The yield
chart shows the basis point changes in the U.S. Treasury bond which is the
benchmark U.S. Treasury bond with a maturity of 10 years.
The following plotting points are used for comparison in the mountain charts.
Date Dow Jones U.S. 10 Year
Industrial Average Treasury Bond Yield
12/31/93 3754.09 5.83%
12/31/94 3834.44 7.84%
12/31/95 5117.12 5.58%
12/31/96 6448.27 6.43%
12/31/97 7908.25 5.75%
12/31/98 9181.43 4.65%
12/31/99 11,497.12 6.44%
12/31/00 10,786.85 5.11%
12/31/01 10,021.50 5.00%
12/31/02 8,341.63 3.82%
06/30/03 8,985.44 3.52%
- --------------------------------------------------------------------------------
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited)
Shares Value
------- -------
EQUITY INTERESTS - 99.6%
AUTOMOBILES & COMPONENTS - 3.1%
ArvinMeritor, Inc................... 9,065 $ 182,932
BorgWarner, Inc..................... 4,550 293,020
Carlisle Cos., Inc.................. 4,065 171,380
Lear Corp*.......................... 8,185 376,674
-----------
$ 1,024,006
-----------
BANKS - 10.4%
Bank of Hawaii Corp................. 10,715 $ 355,202
City National Corp.................. 3,295 146,825
Compass Bancshares, Inc............. 9,970 348,252
First Virginia Banks, Inc........... 4,620 199,214
Greenpoint Financial Corp........... 9,275 472,468
M&T Bank Corp....................... 6,970 587,013
New York Community Bankcorp......... 16,510 480,276
Roslyn Bancorp Inc.................. 8,065 173,317
Sovereign Bancorp Inc............... 23,570 368,870
Webster Financial Corp.............. 7,150 270,270
-----------
$ 3,401,707
-----------
CAPITAL GOODS - 3.3%
Ametek Inc.......................... 3,340 $ 122,411
Donaldson Co., Inc.................. 4,255 189,135
Jacobs Engineering Group, Inc.*..... 7,790 328,348
Pentair, Inc........................ 6,030 235,532
Vishay Intertechnology, Inc*........ 16,370 216,084
-----------
$ 1,091,510
-----------
CHEMICALS - 1.6%
Albemarle Corp...................... 5,960 $ 166,701
Cytec Industries, Inc.*............. 6,610 223,418
Lubrizol Corp....................... 4,025 124,735
-----------
$ 514,854
-----------
COMMERCIAL SERVICES & SUPPLIES - 4.3%
Bandag, Inc......................... 3,230 $ 120,382
Ceridian Corp.*..................... 9,340 158,500
Choicepoint, Inc*................... 6,440 222,309
Corinthian Colleges, Inc.*.......... 4,795 232,893
Manpower, Inc....................... 6,660 247,019
Republic Services, Inc. - Class A*.. 18,240 413,501
-----------
$ 1,394,604
-----------
COMPUTERS & PERIPHERALS - 4.8%
CDW Corp.*.......................... 4,830 $ 221,214
CSG Systems International, Inc.*.... 11,890 168,006
Imation Corp........................ 6,585 249,045
Sandisk Corp.*...................... 10,165 410,158
Storage Technology Corp.*........... 12,420 319,691
Tech Data Corp.*.................... 7,705 205,801
-----------
$ 1,573,915
-----------
CONSUMER DURABLES & APPAREL - 1.7%
Coach, Inc.*........................ 3,765 $ 187,271
Mohawk Industries, Inc.*............ 6,870 381,491
-----------
$ 568,762
-----------
DIVERSIFIED FINANCIALS - 3.9%
E*Trade Group, Inc.*................ 45,260 $ 384,710
Legg Mason, Inc..................... 8,610 559,219
New Plan Excel Realty Trust REIT.... 13,665 291,748
-----------
$ 1,235,677
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.0%
Diebold, Inc........................ 4,655 $ 201,329
Energizer Holdings, Inc.*........... 14,205 446,037
-----------
$ 647,366
-----------
ENERGY - 7.8%
Ensco International, Inc............ 6,770 $ 182,113
Equitable Resources, Inc............ 7,575 308,605
FMC Technologies, Inc.*............. 12,190 256,599
Forrest Oil Corp.*.................. 8,900 223,568
Peabody Energy Corp................. 10,145 340,771
Pogo Producing Co................... 11,230 480,082
Smith International, Inc.*.......... 7,120 261,589
Valero Energy Corp.................. 4,515 164,030
XTO Energy, Inc..................... 16,593 333,685
-----------
$ 2,551,042
-----------
FOOD, BEVERAGE & TOBACCO - 3.9%
Constellation Brands, Inc.-Class A*. 10,485 $ 329,229
Dean Foods Co.*..................... 12,492 393,498
Pepsiamericas, Inc.................. 7,475 93,886
Sensient Technologies Corp.......... 4,180 96,098
Smucker Co. (J.M.) ................. 5,090 203,040
Universal Corp...................... 3,835 162,220
-----------
$ 1,277,971
-----------
HEALTH CARE EQUIPMENT & SERVICES - 6.4%
AdvancePCS*......................... 7,705 $ 294,562
Apria Healthcare Group, Inc.*....... 9,835 244,695
Coventry Health Care, Inc.*......... 4,795 221,337
Dentsply International, Inc......... 5,725 234,152
Edwards Lifesciences Corp.*......... 8,280 266,119
Health Net, Inc.*................... 13,330 439,223
Steris Corp.*....................... 7,185 165,902
Universal Health Services,
Inc. - Class B*................... 5,260 208,401
-----------
$ 2,074,391
-----------
HOME CONSTRUCTION, FURNISHINGS & APPLIANCES - 2.5%
D.R. Horton, Inc.................... 7,835 $ 220,163
Hon Industries, Inc................. 6,235 190,168
Lennar Corp......................... 5,160 368,940
-----------
$ 779,271
-----------
HOTELS, RESTAURANTS & LEISURE - 3.5%
Applebee's International, Inc....... 5,300 $ 166,579
Brinker International, Inc.*........ 9,250 333,185
Gtech Holdings Corp.*............... 8,230 309,860
Mandalay Resort Group............... 4,265 135,840
Outback Steakhouse, Inc............. 4,905 191,295
-----------
$ 1,136,759
-----------
INSURANCE - 6.2%
American Financial Group, Inc....... 9,635 $ 219,678
Everest Re Group, Ltd............... 5,275 403,538
Fidelity National Financial, Inc.... 7,456 229,347
First American Corp................. 6,080 160,208
HCC Insurance Holdings, Inc......... 5,090 150,511
Leucadia National Corp.............. 9,325 346,144
Protective Life Corp................ 7,880 210,790
Radian Group, Inc................... 4,745 173,904
Stancorp Financial Group............ 2,505 130,811
-----------
$ 2,024,931
-----------
MATERIALS - 2.2%
Airgas, Inc......................... 12,410 $ 207,868
Precision Castparts Corp............ 9,240 287,364
Valspar Corp........................ 5,215 220,177
-----------
$ 715,409
-----------
MEDIA - 2.0%
Belo Corp. - Class A................ 14,770 $ 330,257
Westwood One, Inc.*................. 9,585 325,219
-----------
$ 655,476
-----------
PHARMACEUTICALS & BIOTECHNOLOGY - 7.0%
Barr Laboratories, Inc.*............ 4,987 $ 326,649
Gilead Sciences, Inc.*.............. 4,700 261,226
Idec Pharmaceuticals Corp.*......... 6,975 237,150
Mylan Laboratories, Inc............. 14,930 519,116
Omnicare, Inc....................... 10,145 342,800
Perrigo Company..................... 11,295 176,654
Pharmaceutical Resources, Inc.*..... 3,440 167,390
SICOR, Inc.*........................ 11,925 242,555
-----------
$ 2,273,540
-----------
RETAILING - 5.4%
Abercrombie & Fitch Co. - Class A*.. 9,330 $ 265,065
Blyth, Inc.......................... 6,350 172,720
Borders Group, Inc.*................ 7,155 126,000
Chico's FAS, Inc.*.................. 5,560 117,038
Claire's Stores, Inc................ 8,060 204,402
Neiman Marcus Group, Inc. - Class A* 6,920 253,272
Pier 1 Imports, Inc................. 8,380 170,952
Ross Stores, Inc.................... 7,130 304,736
Saks, Inc.*......................... 15,230 147,731
-----------
$ 1,761,916
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 1.9%
International Rectifier Corp.*...... 6,725 $ 180,365
Lam Research Corp.*................. 11,815 215,151
Microchip Technology, Inc........... 5,380 132,509
Semtech Corp.*...................... 7,060 100,534
-----------
$ 628,559
-----------
SOFTWARE & SERVICES - 5.4%
Affiliated Computer Services, Inc.*. 6,290 $ 287,642
Checkfree Corp.*.................... 5,815 161,890
Fair Isaac, Inc..................... 2,485 127,853
Internet Security Systems*.......... 5,450 78,971
Macromedia, Inc.*................... 10,520 221,341
Reynolds & Reynolds Co. - Class A... 10,180 290,741
Sybase, Inc.*....................... 15,305 212,893
Synopsys, Inc.*..................... 6,295 389,346
-----------
$ 1,770,677
-----------
TELECOMMUNICATION SERVICES - 1.2%
Adtran, Inc.*....................... 4,240 $ 217,470
Cincinnati Bell, Inc.*.............. 25,560 171,252
-----------
$ 388,722
-----------
TRANSPORTATION - 1.5%
Expeditors International
Washington, Inc................... 5,230 $ 181,167
J.B. Hunt Transport Services, Inc.*. 5,345 201,774
Overseas Shipholding Group.......... 5,325 117,203
-----------
$ 500,144
-----------
UTILITIES - 7.6%
Allete, Inc......................... 8,320 $ 220,896
Great Plains Energy, Inc............ 4,750 137,180
Hawaiian Electric Industries, Inc... 5,965 273,495
NSTAR Corp.......................... 7,665 349,141
Puget Energy, Inc................... 10,490 250,396
Questar Corp........................ 11,175 374,027
SCANA Corp.......................... 11,410 391,135
Sierra Pacific Resources Co.*....... 23,530 139,768
Wisconsin Energy Corp............... 11,990 347,710
-----------
$ 2,483,748
-----------
TOTAL EQUITY INTERESTS - 99.6%
(identified cost, $28,123,137) $ 32,474,957
OTHER ASSETS,
LESS LIABILITIES - 0.4% 139,609
-----------
NET ASSETS - 100% $ 32,614,566
============
* Non-income-producing security
See notes to financial statements
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments at value
(identified cost, $28,123,137) (Note 1A) $ 32,474,957
Cash.................................... 274,766
Receivable for fund shares sold......... 28,362
Receivable from investment adviser...... 55,477
Dividends receivable.................... 22,009
Other assets............................ 3,007
------------
Total assets.......................... $ 32,858,578
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 217,620
Transfer agent fee payable.............. 5,914
Accrued expenses and other liabilities.. 20,478
------------
Total liabilities..................... $ 244,012
------------
NET ASSETS................................ $ 32,614,566
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $ 30,214,704
Accumulated undistributed net realized loss
on investments (computed on the basis of
identified cost)....................... (2,838,249)
Unrealized appreciation on investments
(computed on the basis of identified cost) 4,351,820
Undistributed net investment income..... 886,291
------------
Net assets applicable to outstanding
shares................................ $ 32,614,566
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 3,282,248
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $ 9.94
=============
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Dividend income......................... $ 157,758
Expenses -
Investment adviser fee (Note 2)........ $ 94,674
Administrator fee (Note 2)............. 18,935
Compensation of Trustees not employees of the
investment adviser or administrator... 8,001
Custodian fee.......................... 48,362
Distribution expenses (Note 3)......... 39,445
Transfer and dividend disbursing agent fees 11,590
Shareholder Communications............. 4,440
Printing............................... 2,535
Audit services......................... 38,250
Legal services......................... 4,621
Registration costs .................... 11,090
Miscellaneous.......................... 3,748
------------
Total expenses........................ $ 285,691
------------
Deduct -
Preliminary allocation of expenses to
investment adviser (Note 2)........... $ (55,477)
Preliminary reduction of distribution expenses
by principal underwriter (Note 3) .... (32,955)
------------
Total deductions...................... $ (88,432)
------------
Net expenses........................ $ 197,259
------------
Net investment loss............... $ (39,501)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $(2,413,638)
Change in unrealized appreciation (depreciation)
of investments ........................ 5,096,313
------------
Net realized and unrealized gain of
investments........................... $ 2,682,675
------------
Net increase in net assets from
operations.......................... $ 2,643,174
=============
See notes to financial statements
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC)
- -------------------------------------------------------------------------------
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec.31, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment loss........................................................ $ (39,501) $ (179,784)
Net realized gain (loss) on investments.................................... (2,413,638) 3,548
Change in unrealized appreciation (depreciation) of investments............ 5,096,313 (7,560,843)
------------ ------------
Net increase (decrease) in net assets resulting from operations.......... $ 2,643,174 $ (7,737,079)
------------ ------------
Distributions to shareholders (Note 1F) -
From net realized gain..................................................... $ (470,550) $ (1,680,807)
------------ ------------
Total distributions...................................................... $ (470,550) $ (1,680,807)
------------ ------------
Net increase (decrease) in net assets from fund share transactions (Note 4).. $ (2,375,299) $ (3,647,530)
------------ ------------
Net decrease in net assets................................................... $ (202,675) $(13,065,416)
NET ASSETS:
At beginning of period....................................................... 32,817,241 45,882,657
------------ ------------
At end of period............................................................. $ 32,614,566 $ 32,817,241
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD................................................................ $ 886,291 $ 925,792
============== ==============
See notes to financial statements
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC)
- -------------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS June 30, 2003(5) 2002(5) 2001(5) 2000(5) 1999 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........ $ 9.270 $ 11.580 $ 13.430 $ 15.130 $ 17.630 $ 19.200
-------- -------- --------- --------- -------- --------
Income (loss) from investment operations:
Net investment (loss) income* ......... $ (0.011) $ (0.046) $ (0.045) $ (0.041) $ 0.181 $ 0.095
Net realized and unrealized gain (loss) 0.814 (1.831) (1.322) 1.638 0.638 (0.139)
-------- --------- --------- -------- -------- --------
Total income (loss)
from investment operations......... $ 0.803 $ (1.877) $ (1.367) $ 1.597 $ 0.819 $ (0.044)
-------- --------- --------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ - $ - $ - $ - $ (0.055) $ (0.090)
Distributions from capital gains....... (0.133) (0.433) (0.483) (3.297) (3.264) (1.436)
--------- -------- --------- -------- -------- --------
Total distributions................ $ (0.133) $ (0.433) $ (0.483) $ (3.297) $ (3.319) $ (1.526)
--------- -------- --------- -------- -------- --------
Net asset value, end of period.............. $ 9.940 $ 9.270 $ 11.580 $ 13.430 $ 15.130 $ 17.630
========= ======== ======== ======== ======== ========
Total return(1) ............................ 8.91% (16.98%) (10.15%) 10.75% 5.75% 0.14%
Ratios/Supplemental Data*:
Net assets, end of period (000 omitted) $ 32,615 $ 32,817 $ 45,883 $ 51,201 $ 74,547 $220,965
Ratio of net expenses to average net assets 1.25%(6) 1.26%(2) 1.26%(2) 1.26%(2) 1.16%(2) 1.11%(2)
Ratio of net expenses after custodian fee
reduction to average net assets(4).. 1.25%(6) 1.25%(2) 1.25%(2) 1.25%(2) 1.15%(2) 1.11%(2)
Ratio of net investment income (loss) to average
net assets.......................... (0.25%)(6) (0.44%) (0.38%) (0.28%) 0.36% 0.46%
Portfolio turnover rate .............. 64% 119%(3) 67%(3) 55%(3) 106%(3) 78%(3)
- -------------------------------------------------------------------------------------------------------------------------------
* For the six months ended June 30, 2003 and for the years ended December 31,
2002, 2001, 2000 and 1999, the operating expenses of the fund were reduced by
an allocation of expenses to the distributor and/or investment adviser. Had
such action not been undertaken, net investment income (loss) per share and
the ratios would have been as follows:
2003 2002 2001 2000 1999
---------------------------------------------------------
Net investment income (loss) per share. $ (0.036) $ (0.064) $ (0.057) $ (0.051) $ 0.151
========== ========== ========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses........................... 1.81%(6) 1.43%(2) 1.37%(2) 1.33%(2) 1.22%(2)
========== ========== ========== ========== ==========
Expenses after custodian fee reduction(4) 1.81%(6) 1.42%(2) 1.36%(2) 1.32%(2) 1.21%(2)
========== ========== ========== ========== ==========
Net investment income (loss)....... (0.81%)(6) (0.61%) (0.49%) (0.35%) 0.30%
========== ========== ========== ========== ==========
- ---------------------------------------------------------------------------------------------------------------------------------
(1)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
(2)Includes each fund's share of its corresponding portfolio's allocated expenses.
(3)Represents portfolio turnover rate of the fund's corresponding portfolio.
(4)Custodian fees were reduced by credits resulting from cash balances the fund
and/or the portfolio maintained with the custodian (Note 1D). The computation
of net expenses to average daily net assets reported above is computed
without consideration of such credits.
(5)Certain per share amounts are based on average shares outstanding.
(6)Annualized.
See notes to financial statements
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited)
Shares Value
EQUITY INTERESTS - 99.3%
AUTOMOBILES & COMPONENTS - 1.4%
AutoNation, Inc.*................... 11,690 $ 183,767
Cooper Industries, Inc. - Class A... 5,616 231,941
Paccar Inc.......................... 7,575 511,767
-----------
$ 927,475
-----------
BANKS - 8.6%
Bank of America Corp................ 21,429 $ 1,693,534
First Tennessee National Corp....... 12,494 548,612
Golden West Financial Corp.......... 6,460 516,865
KeyCorp............................. 15,110 381,830
Wachovia Corp....................... 16,359 653,706
Washington Mutual Inc............... 21,878 903,561
Wells Fargo & Co.................... 23,435 1,181,124
-----------
$ 5,879,232
-----------
CAPITAL GOODS - 5.8%
General Electric Co................. 95,182 $ 2,729,820
Power-One, Inc.*.................... 11,927 85,278
United Technologies Corp............ 16,200 1,147,446
-----------
$ 3,962,544
-----------
COMMERCIAL SERVICES & SUPPLIES - 1.8%
Apollo Group Inc. - Class A*........ 6,585 $ 406,690
Avery Dennison Corp................. 4 201
Ecolab, Inc......................... 9,527 243,891
First Data Corp..................... 13,265 549,702
-----------
$ 1,200,484
-----------
COMMUNICATIONS EQUIPMENT - 2.5%
Cisco System, Inc.*................. 77,261 $ 1,289,486
Qualcomm, Inc....................... 10,962 391,891
-----------
$ 1,681,377
-----------
COMPUTER & PERIPHERALS - 3.0%
Computer Sciences Corp.*............ 5,620 $ 214,234
Dell Computer Corp.*................ 25,429 812,711
EMC Corp.*.......................... 25,355 265,467
Hewlett-Packard Co.................. 13,015 277,219
Lexmark International, Inc.*........ 3,216 227,596
Xerox Corp.*........................ 26,351 279,057
-----------
$ 2,076,284
-----------
CONSUMER DURABLES & APPAREL - 1.0%
Eastman Kodak Co.................... 12,269 $ 335,557
Liz Claiborne, Inc.................. 10,651 375,448
-----------
$ 711,005
-----------
DIVERSIFIED FINANCIALS - 8.1%
American Express Co................. 20,450 $ 855,014
Bear Stearns Cos. (The), Inc........ 9,796 709,426
Citigroup, Inc...................... 50,989 2,182,329
Countrywide Credit Industries, Inc.. 5,342 371,643
J.P Morgan Chase & Co............... 25,630 876,033
Lehman Brothers Holdings, Inc....... 4,645 308,800
Providian Financial Corp.*.......... 28,329 262,327
-----------
$ 5,565,572
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.9%
JDS Uniphase Corp.*................. 40,410 $ 141,839
Linear Technology Corp.............. 8,600 277,006
Sanmina-SCI Corp.*.................. 31,374 197,970
-----------
$ 616,815
-----------
ENERGY - 7.8%
Apache Corp......................... 10,839 $ 705,185
Burlington Resources, Inc........... 6,016 325,285
ChevronTexaco Corp.................. 18,555 1,339,671
ConocoPhillips Co................... 8,640 473,472
Devon Energy Corp................... 5,855 312,657
Exxon Mobil Corp.................... 36,600 1,314,306
Halliburton Co...................... 17,925 412,275
Praxair, Inc........................ 7,640 459,164
-----------
$ 5,342,015
-----------
FOOD & DRUG RETAILING - 0.8%
Kroger Co.*......................... 13,605 $ 226,931
Sysco Corp.......................... 10,566 317,403
-----------
$ 544,334
-----------
FOOD, BEVERAGE & TOBACCO - 3.2%
Anheuser Busch Cos., Inc............ 4,172 $ 212,981
Brown-Forman Corp. - Class B........ 1,975 155,274
Coca Cola Co........................ 10,285 477,327
ConAgra Foods, Inc.................. 4 94
General Mills, Inc.................. 8,635 409,385
McCormick & Co., Inc................ 9,751 265,227
PepsiCo, Inc........................ 14,938 664,741
-----------
$ 2,185,029
-----------
HEALTH CARE EQUIPMENT & SERVICES - 3.8%
Aetna, Inc.......................... 6,768 $ 407,434
Anthem, Inc.*....................... 3,760 290,084
Boston Scientific Corp.*............ 7,311 446,702
C.R. Bard, Inc...................... 5,072 361,684
Quest Diagnostics, Inc.*............ 4,870 310,706
UnitedHealth Group, Inc............. 9,248 464,712
Wellpoint Health Networks, Inc.*.... 4,050 341,415
-----------
$ 2,622,737
-----------
HEAVY MACHINERY - 1.1%
Caterpillar, Inc.................... 7,210 $ 401,309
Ingersoll-Rand Co. - Class A........ 7,905 374,065
-----------
$ 775,374
-----------
HOME CONSTRUCTION, FURNISHINGS & APPL. - 0.4%
Whirlpool Corp...................... 4,599 $ 292,956
-----------
HOTELS, RESTAURANTS & LEISURE - 0.4%
Cendant Corp.*...................... 15,885 $ 291,013
-----------
HOUSEHOLD & PERSONAL PRODUCTS - 3.8%
Avon Products, Inc.................. 8,466 $ 526,585
Clorox Co........................... 8,310 354,421
Corning, Inc.*...................... 20,900 154,451
Gillette Co. (The).................. 12,095 385,347
Procter & Gamble Co................. 13,435 1,198,133
-----------
$ 2,618,937
-----------
INSURANCE - 3.2%
AFLAC, Inc.......................... 17,980 $ 552,885
Allstate Corp....................... 8,404 299,603
AMBAC Financial Group, Inc.......... 4,075 269,969
Chubb Corp.......................... 4,505 270,300
Metlife, Inc........................ 15,636 442,812
XL Capital, Ltd. - Class A.......... 4,080 338,640
-----------
$ 2,174,209
-----------
MATERIALS - 0.9%
Du Pont (E.I.) de Nemours & Co...... 14,186 $ 590,705
-----------
MEDIA - 3.8%
AOL Time Warner, Inc.*.............. 40,672 $ 654,412
Clear Channel Communications*....... 11,330 480,279
Tribune Co.......................... 16,296 787,097
Viacom, Inc. - Class B*............. 16,250 709,475
-----------
$ 2,631,263
-----------
PHARMACEUTICALS & BIOTECHNOLOGY - 11.0%
Abbott Laboratories, Inc............ 11,800 $ 516,368
Allergan, Inc....................... 6,627 510,942
Amgen, Inc.*........................ 9,618 639,020
Forest Laboratories, Inc. - Class A* 8,710 476,872
Genzyme Corp. - General Division*... 5,871 245,408
Johnson & Johnson, Inc.............. 23,296 1,204,403
Medtronic, Inc...................... 11,216 538,032
Merck & Co., Inc.................... 24,681 1,494,435
Pfizer, Inc......................... 30,023 1,025,285
Watson Pharmaceuticals, Inc.*....... 9,616 388,198
Wyeth Corp.......................... 10,715 488,068
-----------
$ 7,527,031
-----------
RETAILING - 8.4%
Bed Bath & Beyond, Inc.*............ 6,614 $ 256,689
Best Buy Co., Inc.*................. 12,726 558,926
Costco Wholesale Corp.*............. 10,615 388,509
eBay, Inc.*......................... 5,665 590,076
Gap (The), Inc...................... 20,699 388,313
Home Depot, Inc..................... 16,855 558,238
J.C. Penney Co., Inc................ 1 17
Lowes Cos., Inc..................... 10,016 430,187
Staples, Inc.*...................... 17,271 316,923
Target Corp......................... 10,710 405,266
Wal-Mart Stores, Inc................ 34,826 1,869,111
-----------
$ 5,762,255
-----------
SEMICONDUCTOR EQUIPMENT & PRODUCTS - 3.0%
Applied Materials, Inc.*............ 20,540 $ 325,764
Intel Corp.......................... 60,963 1,267,055
QLogic Corp.*....................... 9,263 447,681
-----------
$ 2,040,500
-----------
SOFTWARE & SERVICES - 7.5%
International Business Machines Corp. 13,408 $ 1,106,160
Mercury Interactive Corp.*.......... 8,524 329,112
Microsoft Corp...................... 85,039 2,177,849
Oracle Corp.*....................... 54,368 653,503
Symantec Corp.*..................... 7,150 313,599
Yahoo, Inc.*........................ 16,198 530,646
-----------
$ 5,110,869
-----------
TELECOMMUNICATION SERVICES - 4.3%
Alltel Corp......................... 11,917 $ 574,638
AT&T Wireless Services, Inc.*....... 24,422 200,505
Centurytel, Inc..................... 13,808 481,209
Citizens Communications Co.*........ 8,385 108,083
Nextel Communications,
Inc. - Class A*.................... 28,857 521,735
Verizon Communications, Inc......... 26,562 1,047,871
-----------
$ 2,934,041
-----------
TRANSPORTATION - 1.0%
Fedex Corp.......................... 5,004 $ 310,398
Union Pacific Corp.................. 6,921 401,556
-----------
$ 711,954
-----------
UTILITIES - 1.8%
Dominion Resources, Inc............. 5,520 $ 354,770
Entergy Corp........................ 7,288 384,661
Exelon Corp......................... 4,383 262,147
Sempra Energy....................... 8,630 246,214
-----------
$ 1,247,792
-----------
TOTAL EQUITY INTERESTS -- 99.3%
(identified cost, $63,512,856) $ 68,023,802
OTHER ASSETS, LESS LIABILITIES -- 0.7% 485,850
-----------
NET ASSETS -- 100% $ 68,509,652
============
* Non-income-producing security.
See notes to financial statements
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments at value
(identified cost, $63,512,856) (Note 1A) $ 68,023,802
Cash.................................... 407,476
Receivable for fund shares sold......... 30,540
Receivable from investment adviser...... 27,364
Dividends receivable.................... 76,124
Other assets............................ 3,374
------------
Total assets.......................... $ 68,568,680
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 37,395
Transfer agent fee...................... 7,863
Accrued expenses and other liabilities.. 13,770
------------
Total liabilities..................... $ 59,028
------------
NET ASSETS................................ $ 68,509,652
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $104,221,508
Accumulated undistributed net realized loss on
investments (computed on the basis
of identified cost).................... (40,092,354)
Unrealized appreciation on investments
(computed on the basis of identified cost) 4,510,946
Distributions in excess of net
investment income...................... (130,448)
------------
Net assets applicable to outstanding
shares................................ $ 68,509,652
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 7,330,598
=============
NET ASSET VALUE, OFFERING PRICE
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $ 9.35
=============
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Dividend income......................... $ 493,317
Expenses -
Investment adviser fee (Note 2)........ $ 197,277
Administrator fee - (Note 2)........... 39,455
Compensation of Trustees not employees of the
investment adviser or administrator... 8,001
Custodian fee (Note 1D)................ 48,185
Distribution expenses (Note 3)........ 82,206
Transfer and dividend disbursing agent fees 13,055
Shareholder Communications............. 7,649
Printing............................... 3,374
Audit services......................... 31,600
Legal services......................... 7,095
Registration costs..................... 9,584
Miscellaneous.......................... 4,595
------------
Total expenses........................ $ 452,076
------------
Deduct -
Preliminary allocation of expenses to the
investment adviser (Note 2)........... $ (27,364)
Preliminary reduction of distribution expenses
by principal underwriter (Note 3)..... (13,564)
------------
Total deductions...................... $ (40,928)
------------
Net expenses.......................... $ 411,148
------------
Net investment income............... $ 82,169
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $(2,983,633)
Change in unrealized appreciation (depreciation)
of investments......................... 8,689,421
------------
Net realized and unrealized gain
of investments......................... $ 5,705,788
------------
Net increase in net assets from
operation............................. $ 5,787,957
=============
See notes to financial statements
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
- -------------------------------------------------------------------------------
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31,2002
- --------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income ..................................................... $ 82,169 $ 191,576
Net realized loss on investments........................................... (2,983,633) (16,457,346)
Change in unrealized appreciation (depreciation) on investments............ 8,689,421 (5,662,120)
------------ ------------
Net increase (decrease) in net assets resulting from operations.......... $ 5,787,957 $(21,927,890)
------------ ------------
Distributions to shareholders
From net investment income................................................. $ (16,915) $ (171,114)
------------ ------------
Total distributions...................................................... $ (16,915) $ (171,114)
------------ ------------
Net increase (decrease) in net assets from fund share transactions (Note 4)
Standard shares............................................................ $ (3,870,861) $ (5,030,351)
Institutional shares (Note 8).............................................. -- (1,382,497)
------------ ------------
Net decrease in net assets from fund share transactions...................... $ (3,870,861) $ (6,412,848)
------------ ------------
Net Increase (decrease) in net assets........................................ $ 1,900,181 $(28,511,852)
NET ASSETS:
At beginning of period....................................................... 66,609,471 95,121,323
------------ ------------
At end of period............................................................. $ 68,509,652 $ 66,609,471
============== ==============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD............................................................. $ (130,448) $ (195,702)
============== ==============
See notes to financial statements
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
- -------------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
-------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS June 30, 2003(4) 2002(4) 2001(4) 2000(4) 1999(4) 1998
- -----------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........ $ 8.570 $ 11.380 $ 13.690 $ 16.290 $ 13.670 $ 12.020
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(1) ....... $ 0.011 $ 0.024 $ (0.009) $ (0.001) $ 0.042 $ 0.091
Net realized and unrealized gain (loss) 0.771 (2.812) (2.301) (2.005) 3.202 2.324
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ 0.782 $ (2.788) $ (2.310) $ (2.006) $ 3.244 $ 2.415
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ (0.002) $ (0.022) $ - $ (0.010) $ (0.045) $ (0.055)
Distributions from capital gains....... - - - (0.584) (0.579) (0.710)
-------- -------- -------- -------- -------- --------
Total distributions................ $ (0.002) $ (0.022) $ - $ (0.594) $ (0.624) $ (0.765)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 9.350 $ 8.570 $ 11.380 $ 13.690 $ 16.290 $ 13.670
========== ========== ========== ========== ========== ==========
Total Return(3) ............................ 9.13% (24.50%) (16.87%) (12.49%) 23.95% 20.43%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted) $ 68,510 $ 66,609 $ 93,696 $ 135,262 $ 144,359 $ 50,878
Ratio of net expenses to average net assets 1.25%(7) 1.22% 1.13% 1.06% 1.05% 1.07%
Ratio of net expenses after custodian fee
reduction to average net assets(2)(6) 1.25%(7) 1.22% 1.13% 1.06% 1.05% 1.05%
Ratio of net investment income (loss) to
average net assets ................. 0.25%(7) 0.25% (0.08%) (0.00%)(5) 0.27% 0.49%
Portfolio turnover rate................ 56% 130% 78% 88% 59% 36%
- -----------------------------------------------------------------------------------------------------------------------------------
(1)For the six months ended June 30, 2003 and for the years ended December 31,
1999 and 1998, the operating expenses of the Fund were reduced by an
allocation of expenses to the distributor and/or investment adviser. Had such
action not been undertaken, net investment income per share and the ratios
would have been as follows:
2003 1999 1998
------ ----------------------------
Net investment income per share........ $ 0.006 $ 0.034 $ 0.052
========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses............................. 1.37%(7) 1.10% 1.28%
========== ========== ==========
Expenses after custodian fee reduction(2) 1.37%(7) 1.10% 1.26%
========== ========== ==========
Net investment income................ 0.13%(7) 0.22% 0.28%
========== ========== ==========
- ----------------------------------------------------------------------------------------------------------------------------------
(2)Custodian fees were reduced by credits resulting from cash balances the fund
maintained with the custodian (Note 1D). The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits.
(3)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
(4)Certain per share amounts are based on average shares outstanding.
(5)Amount represents less than (0.00%) of average net shares.
(6)Under a written agreement, Wright waives a portion of its advisory fee and
assumes operating expenses to the extent necessary to limit expense ratios to
1.25%.
(7)Annualized.
See notes to financial statements
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited)
Shares Value
EQUITY INTERESTS - 99.6%
AUSTRALIA - 3.0%
Australia & New Zealand Banking
Group.............................. 49,150 $ 613,431
Bhp Billiton, Ltd................... 33,100 191,795
National Australia Bank, Ltd........ 29,550 663,893
-----------
$ 1,469,119
-----------
BELGIUM - 0.7%
Colruyt SA.......................... 4,700 $ 324,914
-----------
CANADA - 4.0%
Bank of Nova Scotia................. 25,700 $ 1,136,758
Cognos, Inc.*....................... 3,300 89,100
Royal Bank of Canada................ 16,950 715,798
-----------
$ 1,941,656
-----------
DENMARK - 0.3%
TDC A/S............................. 5,040 $ 150,730
-----------
FINLAND - 1.4%
Nokia OYJ - Sponsored ADR........... 30,788 $ 505,847
UPM-Kymmene OYJ..................... 10,300 150,334
-----------
$ 656,181
-----------
FRANCE - 10.8%
Aventis SA.......................... 9,200 $ 506,161
AXA................................. 22,825 354,112
BNP Paribas SA...................... 14,398 731,627
Carrefour SA........................ 4,947 242,460
Casino Guichard Perrachon........... 2,700 210,837
Compagnie De Saint-Gobain........... 6,300 247,930
Groupe Danone SA.................... 1,900 262,915
Orange SA*.......................... 29,000 257,426
Pernod-Ricard....................... 1,812 161,679
Pinault-Printemps-Redoute........... 3,300 248,595
Renault SA.......................... 4,400 232,628
STMicroelectronics NV............... 9,988 209,437
Thomson............................. 9,300 143,428
TotalFinaElf SA..................... 5,655 854,600
Vivendi Universal SA*............... 15,745 286,580
Zodiac SA........................... 12,300 300,009
-----------
$ 5,250,424
-----------
GERMANY - 7.7%
BASF AG............................. 6,970 $ 297,749
Bayerische Motoren Werke AG......... 9,100 350,074
Deutsche Bank AG.................... 7,400 479,955
Deutsche Telekom AG, Spons. ADR*.... 21,440 325,888
E. On AG............................ 19,000 976,821
Muenchener Rueckver AG - Registered. 4,250 433,290
SAP AG.............................. 2,400 283,045
Siemens AG.......................... 9,600 470,952
Thyssen Krupp....................... 8,150 93,965
-----------
$ 3,711,739
-----------
GREECE - 0.4%
Hellenic Bottling Co. SA............ 12,470 $ 208,212
-----------
HONG KONG - 1.4%
China Mobile, Ltd................... 72,300 $ 170,594
Esprit Holdings, Ltd................ 84,700 206,913
Hutchison Whampoa, Ltd.............. 52,700 321,006
-----------
$ 698,513
-----------
ISRAEL - 0.5%
Teva Pharmaceutical - Sponsored ADR. 4,400 $ 250,492
-----------
ITALY - 0.5%
Tim SpA............................. 44,785 $ 220,630
-----------
JAPAN - 17.1%
Belluna Co., Ltd.................... 3,700 $ 150,989
Bridgestone Corp.................... 19,000 257,922
Canon, Inc.......................... 13,000 596,544
Daikin Industries, Ltd.............. 16,000 293,816
Daito Trust Construct Co., Ltd...... 8,700 182,948
Denso Corp.......................... 14,200 225,048
Eisai Co., Ltd...................... 12,700 261,245
Fanuc, Ltd.......................... 5,900 292,359
Fuji Photo Film Co., Ltd............ 7,000 202,290
Honda Motor Co., Ltd................ 19,100 723,756
Kao Corp............................ 6,000 111,680
Keyence Corp........................ 910 166,729
Kyushu Electric Power............... 11,900 185,227
Nissan Motor Co., Ltd............... 39,100 373,823
Nomura Holdings, Inc................ 30,000 380,762
NTT DoCoMo, Inc..................... 375 811,993
Ricoh Co., Ltd...................... 17,000 277,776
Rohm Co., Ltd....................... 2,300 250,735
Shin-Etsu Chemical Co............... 17,500 597,543
SMC Corp............................ 3,100 261,012
Sony Corp........................... 10,000 281,491
Takeda Chemicals Industries, Ltd.... 14,300 527,579
Toyota Motor Corp................... 23,100 598,301
Yamanouchi Pharmaceutical Co., Ltd.. 10,900 284.131
-----------
$ 8,295,699
-----------
MEXICO - 1.1%
Telefonos De Mexico.................327,400 $ 515,724
-----------
NETHERLANDS - 5.1%
ABN Amro Holdings NV................ 19,300 $ 369,017
DSM NV.............................. 5,800 244,571
IHC Caland NV....................... 8,269 422,179
ING Groep NV........................ 25,509 443,207
Koninklijke Philips Electronics NV.. 17,259 328,209
Royal Dutch Petroleum Co............ 14,384 667,652
-----------
$ 2,474,835
-----------
NORWAY - 1.5%
Norsk Hydro ASA..................... 15,200 $ 747,534
-----------
SOUTH KOREA - 0.6%
KT Corp., Sponsored ADR............. 16,000 $ 315,360
-----------
SPAIN - 9.0%
Acerinox SA......................... 2,400 $ 91,721
Altadis SA.......................... 11,100 284,506
Banco Popular Espanol............... 3,300 166,740
Cia Espanola de Petroleos SA........ 23,174 630,701
Corporacion Mapfre SA............... 38,700 413,303
Ebro Puleva SA...................... 17,000 162,032
Endesa SA........................... 41,600 696,506
Fomento De Construc Y Contra........ 3,900 108,963
Gas Natural SDG SA.................. 21,500 432,067
Grupo Dragados SA................... 8,352 168,131
Grupo Ferrovial SA.................. 8,700 236,279
Indra Sistemas SA................... 32,800 333,343
Repsol Vpf SA....................... 12,700 205,927
Telefonica SA....................... 35,703 414,505
-----------
$ 4,344,724
-----------
SWEDEN - 0.6%
Telefon. LM Ericsson, Sponsored ADR* 29,620 $ 314,861
-----------
SWITZERLAND - 6.8%
Nestle SA........................... 4,600 $ 949,171
Novartis AG......................... 27,580 1,091,350
Swiss Reinsurance AG................ 4,700 $ 260,408
UBS AG.............................. 12,700 706,467
Zurich Financial Services*.......... 2,240 267,070
-----------
$ 3,274,466
-----------
UNITED KINGDOM - 27.1%
Alliance Unichem PLC................ 46,662 $ 381,339
Amvescap PLC........................ 26,311 181,483
Anglo American PLC.................. 33,400 509,814
Baa PLC............................. 36,500 295,430
Barclays PLC........................133,068 988,120
BHP Billiton, Ltd................... 44,033 231,789
BP PLC..............................127,390 883,418
British American Tobacco
Industries PL...................... 41,883 475,153
British Sky Broadcasting Group PLC*. 31,900 353,476
BT Group PLC........................105,000 353,029
Diageo PLC.......................... 73,049 779,905
GlaxoSmithkline PLC................. 51,224 1,033,769
Great Universal Stores PLC.......... 31,136 348,864
Hbos PLC............................ 44,100 570,893
HSBC Holdings PLC................... 98,233 1,160,630
Jarvis PLC.......................... 26,000 154,231
Johnson Matthey PLC................. 11,100 161,736
Kingfisher PLC...................... 59,900 274,045
Legal & General Group PLC...........168,603 233,705
Lloyds TSB Group PLC................ 70,165 498,155
Persimmon........................... 27,100 213,310
Reckitt Benckiser PLC............... 14,394 264,125
Royal Bank of Scotland Group PLC.... 35,100 984,645
Shell Transport & Trading Co. PLC... 92,296 609,209
Unilever PLC........................ 37,536 298,861
Vodafone Group PLC..................456,000 891,675
-----------
$ 13,130,809
-----------
TOTAL EQUITY INTERESTS - 99.6%
(identified cost, $45,975,981) $ 48,296,622
-----------
OTHER ASSETS, LESS LIABILITIES -- 0.4% 202,494
-----------
NET ASSETS -- 100% $ 48,499,116
============
* Non-income-producing security.
ADR: American Depository Receipts.
See notes to financial statements
Wright International Blue Chip Equities Fund (WIBC)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investment at value
(identified cost, $45,975,981) (Note 1A) $ 48,296,622
Cash.................................... 723
Foreign currency, at value (cost $30,018) (Note 1) 29,877
Receivable for investments sold......... 225,198
Receivable for fund shares sold......... 4,793
Receivable from investment adviser...... 9,767
Dividends receivable.................... 101,416
Other assets............................ 126,630
------------
Total assets.......................... $ 48,795,026
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 15,991
Demand note payable..................... 254,000
Transfer agent fee payable.............. 7,901
Accrued expenses and other liabilities.. 18,018
------------
Total liabilities..................... $ 295,910
------------
NET ASSETS................................ $ 48,499,116
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $ 73,753,566
Accumulated undistributed net realized loss on
investments and foreign currency (computed
on the basis of identified cost)....... (29,652,750)
Unrealized appreciation of investments and
translation of assets and liabilities in foreign
currencies (computed on the basis of
identified cost)....................... 2,328,195
Undistributed net investment income..... 2,070,105
------------
Net assets applicable to outstanding
shares................................ $ 48,499,116
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 4,500,180
=============
NET ASSET VALUE, OFFERING PRICE
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $ 10.78
=============
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Dividend income ........................ $ 1,150,485
Less: Foreign taxes..................... (139,268)
------------
Investment income..................... $ 1,011,217
------------
Expenses -
Investment adviser fee (Note 2)........ $ 225,385
Administrator fee (Note 2)............. 47,894
Compensation of Trustees not employees of
the investment adviser or administrator 8,000
Custodian fee
- Standard shares..................... 75,675
- Institutional shares................ 4,107
Distribution expenses (Note 3)......... 60,676
Shareholder Communications............. 6,002
Transfer and dividend disbursing agent fees
- Standard shares..................... 13,804
- Institutional shares................ 4,037
Printing............................... 2,686
Audit services......................... 41,600
Legal services......................... 6,913
Registration costs
- Standard shares..................... 10,711
- Institutional shares................ 8,219
Miscellaneous.......................... 8,553
------------
Total expenses........................ $ 524,262
------------
Deduct -
Preliminary allocation of expenses to the
investment adviser (Note 2)........... $ (9,767)
Allocation of Institutional class expenses to
investment adviser (Note 2)........... (3,538)
------------
Total deductions...................... $ (13,305)
------------
Net expenses.......................... $ 510,957
------------
Net investment income............. $ 500,260
------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss on investment and foreign
currency transactions
(identified cost basis)................. $(2,422,079)
Change in unrealized appreciation (depreciation)
of investments and translation of assets and
liabilities in foreign currencies...... 7,444,656
------------
Net realized and unrealized gain of
investments............................ $ 5,022,577
------------
Net increase in net assets from
operations........................... $ 5,522,837
=============
See notes to financial statements
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
- -------------------------------------------------------------------------------
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31,2002
- -----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
DECREASE IN NET ASSETS:
From operations -
Net investment income ..................................................... $ 500,260 $ 466,265
Net realized loss on investments and foreign currency transactions......... (2,422,079) (12,072,706)
Change in unrealized appreciation (depreciation) on investments
and translation of assets and liabilities in foreign currencies........... 7,444,656 793,286
------------ ------------
Net increase (decrease) in net assets resulting from operations.......... $ 5,522,837 $(10,813,155)
------------ ------------
Distributions to shareholders
From net investment income
Standard shares............................................................ $ (338,309) $ --
Institutional shares....................................................... (69,545) --
------------ ------------
Total distributions...................................................... $ (407,854) $ --
------------ ------------
Net increase (decrease) in net assets from fund share transactions
Standard shares............................................................ $ (6,809,790) $ (6,953,683)
Institutional shares....................................................... (11,047,783) (1,005,127)
------------ ------------
Net decrease in net assets from fund share transactions...................... $(17,857,573) $ (7,958,810)
------------ ------------
Net decrease in net assets................................................... $(12,742,590) $(18,771,965)
NET ASSETS:
At beginning of period....................................................... 61,241,706 80,013,671
------------ ------------
At end of period............................................................. $ 48,499,116 $ 61,241,706
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD................................................................ $ 2,070,105 $ 1,977,699
============== ==============
See notes to financial statements
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
- -------------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS June 30, 2003(4) 2002(4) 2001(4) 2000(4) 1999(4) 1998
- ---------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........ $ 9.840 $11.510 $15.180 $18.900 $16.020 $16.020
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income (loss) .......... $ 0.085 $ 0.070 $ (0.023) $ 0.135 $ (0.004) $ 0.078
Net realized and unrealized gain (loss) 0.922 (1.740) (3.647) (3.455) 5.181 0.868(+)
--------- --------- --------- --------- --------- ---------
Total income (loss)
from investment operations...... $ 1.007 $ (1.670) $ (3.670) $ (3.320) $ 5.177 $ 0.946
--------- --------- --------- --------- --------- ---------
Less distributions:
Dividends from investment income....... $ (0.067) $ - $ - $ - $ - $ (0.070)
Distributions from capital gains....... - - - (0.400) (2.297) (0.876)
--------- --------- --------- --------- --------- ---------
Total distributions................ $ (0.067) $ - $ - $ (0.400) $ (2.297) $ (0.946)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.............. $ 10.780 $ 9.840 $11.510 $15.180 $18.900 $16.020
========== ========== ========== ========== ========== ==========
Total return(1) ............................ 10.36% (14.51%) (24.18%) (17.58%) 34.26% 6.14%
Ratios/Supplemental Data*
Net assets, end of period (000 omitted) $ 48,499 $ 50,835 $ 66,828 $110,868 $147,610 $193,327
Ratio of net expenses to average net assets 1.85%(6) 1.66%(2) 1.56%(2) 1.49%(2) 1.49%(2) 1.35%(2)
Ratio of net expenses after custodian fee
reduction to average net assets(5) 1.85%(6) 1.65% - - - -
Ratio of net investment income (loss) to average
net assets 1.72%(6) 0.65% (0.18%) 0.76% (0.02%) 0.42%
Portfolio turnover rate .............. 26% 62%(3) 39%(3) 53%(3) 105%(3) 66%(3)
- -----------------------------------------------------------------------------------------------------------------------------------
(1)For the six months ended June 30, 2003 , the operating expenses of the Fund
were reduced by an allocation of expenses to the investment adviser. Had such
action not been undertaken, net investment income per share and the ratios
would have been as follows:
2003
Net investment income per share........ $ 0.083
==========
Ratios (As a percentage of average net assets):
Expenses............................. 1.89%(6)
==========
Expenses after custodian fee reduction 1.89%(6)
==========
Net investment income................ 1.68%(6)
==========
- -----------------------------------------------------------------------------------------------------------------------------------
(1)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
(2)Includes each fund's share of its corresponding Portfolio's allocated expenses.
(3)Represents portfolio turnover rate of the fund's corresponding portfolio.
(4)Certain per share amounts are based on average shares outstanding.
(5)Custodian fees were reduced by credits resulting from cash balances the fund
and/or the portfolio maintained with the custodian (Note 1D). The computation
of net expenses to average daily net assets reported above is computed
without consideration of such credits.
(6)Annualized.
+ Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of fund shares and
the amounts per share of realized and unrealized gains and losses at such
times.
See notes to financial statements
Wright Managed Equity Trust
- -------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Equity Trust (the Trust), issuer of Wright Selected Blue
Chip Equities Fund (WSBC) series, Wright Major Blue Chip Equities Fund (WMBC)
series, and Wright International Blue Chip Equities Fund (WIBC) series
(collectively, the Funds), is registered under the Investment Company Act of
1940, as amended, as a diversified, open-end, management investment company. The
Funds seek to provide total return consisting of price appreciation and current
income. Prior to December 20, 2002, WSBC and WIBC invested all of their
investable assets in interests in a separate corresponding open-end management
investment company (a Portfolio), a New York Trust, having the same investment
objective as its corresponding fund. Subsequent to December 20, 2002, the Funds
invest directly in securities rather than through the Portfolios and maintain
the same investment objectives.
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.
A. Investment Valuations - Securities listed on securities exchanges or in the
NASDAQ National Market are valued at closing sale prices, if those prices
are deemed to be representative of market values at the close of business.
Unlisted or listed securities for which closing sale prices are not
available are valued at the mean between the latest bid and asked prices.
Short-term obligations maturing in sixty days or less are valued at
amortized cost, which approximates fair value. Securities for which market
quotations are unavailable or deemed not to be representative of market
values at the close of business are appraised at their fair value as
determined in good faith by or at the direction of the Trustees.
B. Foreign Currency Translation - Investment security valuations, other
assets, and liabilities initially expressed in foreign currencies are
translated each business day into U.S. dollars based upon current exchange
rates. Purchases and sales of foreign investment securities and income and
expenses are translated into U.S. dollars based upon currency exchange
rates prevailing on the respective dates of such transactions.
C. Income - Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Interest income is recorded on the accrual basis.
However, if the ex-dividend date has passed, certain dividends from foreign
securities are recorded as the fund is informed of the ex-dividend date.
D. Expense Reduction - The funds have entered into an arrangement with their
custodian whereby interest earned on uninvested cash balances is used to
offset custodian fees. All significant reductions are reported as a
reduction of total expenses in the funds' Statement of Operations.
E. Federal Taxes - The Trust's policy is to comply with the provisions of
the Internal Revenue Code (the Code) available to regulated investment
companies and distribute to shareholders each year all of its taxable
income, including any net realized gain on investments. Accordingly,
no provision for federal income or excise tax is necessary. At December
31, 2002, the Trust, for federal income tax purposes, had capital loss
carryovers of $26,538,426 (WIBC) and $34,731,982 (WMBC) which will
reduce the Funds' 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 distribution to shareholders which
would otherwise be necessary to relieve the respective fund of any
liability for federal income or excise tax. Pursuant to the Code, such
capital loss carryovers will expire as follows:
12/31 WMBC WIBC
----- -----
2009 $17,128,584 $12,528,270
2010 17,603,398 14,010,156
At December 31, 2002, net capital losses of $820,207 for WIBC, $405,959 for
WSBC and $1,770,454 for WMBC attributable to security transactions incurred
after October 31, 2002 are treated as arising on the first day of the fund's
current taxable year. Withholding taxes on foreign dividends have been
provided for in accordance with the Trust's understanding of the applicable
country's tax rules and rates.
F. Distributions - The Trust requires that differences in the recognition or
classification of income between the financial statements and tax earnings
and profits which result only in temporary overdistributions for financial
statement purposes, are classified as distributions in excess of net
investment income or accumulated net realized gains. Distributions in excess
of tax basis earnings and profits are reported in the financial statements
as a return of capital. Permanent differences between book and tax
accounting for certain items may result in reclassification of these items.
G. Other - Investment transactions are accounted for on a trade-date basis.
H. Use of Estimates - The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
I. Interim Financial Information - The interim financial statements relating to
June 30, 2003 and for the six month period then ended have not been audited
by independent certified public accountants, but in the opinion of the
Trust's management, reflect all adjustments, consisting only of normally
recurring adjustments, necessary for the fair presentation of the financial
statements.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service, Inc. (Wright) to act as
investment adviser to the Funds pursuant to an Investment Advisory Contract.
Wright furnishes the Funds with investment management, investment advisory, and
other services. For its services, Wright is compensated based upon a percentage
of average daily net assets which rate is adjusted as average daily net assets
exceed certain levels. For the six months ended June 30, 2003, the effective
annual rate was 0.80% for WIBC and 0.60% for WSBC and WMBC. Wright has been
allocated expenses of $55,477, $27,364 and $9,767 on a preliminary basis on
behalf of WSBC, WMBC and WIBC, respectively. In addition, Wright was allocated
$3,538 in expenses on behalf of the Institutional class of WIBC. The Trust also
has engaged Eaton Vance Management (Eaton Vance) to act as administrator of the
Trust. Under the Administration Agreement, Eaton Vance is responsible for
managing the business affairs of the Trust and is compensated based upon a
percentage of average daily net assets which rate is reduced as average daily
net assets exceed certain levels. For the six months ended June 30, 2003, the
effective rate (annualized) was 0.12% for WSBC, 0.12% for WMBC, and 0.17% for
WIBC. Certain of the Trustees and officers of the Trust are Trustees or officers
of the above organizations. Except as to Trustees of the Trust who are not
employees of Eaton Vance or Wright, Trustees and officers receive remuneration
for their services to the Trust out of the fees paid to Eaton Vance and Wright.
(3) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
funds will pay Wright Investors' Service Distributors, Inc. (Principal
Underwriter), a wholly-owned subsidiary of The Winthrop Corporation, an annual
rate of 0.25% of each fund's average daily net assets for activities primarily
intended to result in the sale of each fund's shares. To enhance the net income
of WSBC and WMBC, the principal underwriter made a preliminary reduction of its
fees of $32,955 and $13,564, respectively. In addition, the Trustees have
adopted a service plan (the Service Plan) which allows the funds to reimburse
the Principal Underwriter for payments to intermediaries for providing account
administration and account maintenance services to their customers who are
beneficial owners of shares. The amount of service fee payable under the Service
Plan with respect to each class of shares may not exceed 0.25% annually of the
average daily net assets attributable to the respective classes. For the six
months ended June 30, 2003, the funds did not accrue or pay any service fees.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in fund shares were as follows:
Six Months Ended Year Ended
June 30, 2003 December 31, 2002
-----------------------------------------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------------------
Wright Selected Blue Chip Equities Fund--
Sold................................................... 780,482 $ 7,210,953 1,216,462 $ 12,859,399
Issued to shareholders in payment of
distributions declare................................. 47,582 403,022 126,916 1,479,836
Redemptions............................................ (1,086,170) (9,989,274) (1,765,707) (17,986,765)
----------- -------------- ----------- --------------
Net decrease......................................... (258,106) $ (2,375,299) (422,329) $ (3,647,530)
============= ================= ============= =================
Wright Major Blue Chip Equities Fund - Standard Shares:
Sold................................................... 895,362 $ 7,893,433 2,407,645 $ 23,061,486
Issued to shareholders in payment of
distributions declared................................ 1,704 14,000 16,073 140,477
Redemptions............................................ (1,340,459) (11,778,294) (2,884,658) (28,232,314)
----------- -------------- ----------- --------------
Net decrease......................................... (443,393) $ (3,870,861) (460,940) $ (5,030,351)
============= ================= ============= =================
Wright Major Blue Chip Equities Fund - Institutional Shares:
Sold.................................................. - $ - - $ -
Redemptions............................................ - - (206,264) (1,382,497)
----------- -------------- ----------- --------------
Net decrease......................................... - $ - (206,264) $ (1,382,497)
============= ================= ============= =================
Wright International Blue Chip Equities Fund-- Standard Shares:
Sold................................................... 653,991 $ 6,333,549 1,055,345 $ 11,115,594
Issued to shareholders in payment of
distributions declared................................ 25,450 231,084 16,073 140,477
Redemptions............................................ (1,345,097) (13,374,423) (1,694,585) (18,069,277)
----------- -------------- ----------- --------------
Net decrease......................................... (665,656) $ (6,809,790) (639,240) $ (6,953,683)
=========== ============== ============= =================
Wright International Blue Chip Equities Fund-- Institutional Shares:
Issued to shareholders in payment of
distributions declared................................ 16,247 $ 69,545 - $ -
Redemptions............................................ (2,259,640) (11,117,328) (186,188) (1,005,127)
----------- -------------- ----------- --------------
Net decrease........................................... (2,243,393) $ (11,047,783) (186,188) $ (1,005,127)
============= ============== ============= ===============
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations were as follows:
Six Months Ended June 30, 2003
---------------------------------------------
WSBC WMBC WIBC
- -------------------------------------------------------------------------------
Purchases..... $ 20,534,868 $ 38,735,043 $ 14,621,326
============== ============== ==============
Sales......... $ 23,466,893 $ 42,693,268 $ 32,150,653
============== ============== ==============
- -------------------------------------------------------------------------------
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 2003, as computed on a federal income tax basis,
are as follows:
WSBC WMBC WIBC
- -------------------------------------------------------------------------------
Aggregate cost $ 28,123,137 $ 63,512,856 $ 45,975,981
============== ============== ==============
Gross unrealized
appreciation 4,899,892 7,604,018 5,535,746
Gross unrealized
depreciation (548,072) (3,093,072) (3,215,105)
------------- ------------- -------------
Net unrealized
appreciation $ 4,351,820 $ 4,510,946 $ 2,320,641
============== ============== ==============
- -------------------------------------------------------------------------------
(7) LINE OF CREDIT
The funds participate with other funds managed by Wright in a committed $20
million unsecured line of credit agreement with a bank. The funds may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each fund based on its
borrowings at an amount above the federal funds rate. In addition, a fee
computed at an annual rate of 0.10% on the average daily unused portion of the
$20 million line of credit, is allocated among the participating funds at the
end of each quarter. WSBC, WMBC, and WIBC did not have significant borrowings or
allocated fees during the six months ended June 30, 2003. WIBC has $254,000
outstanding at June 30, 2003.
(8) CLASS ELIMINATION
The Institutional Share class of International Blue Chip Equities Fund was
fully liquidated on May 20, 2003.
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited)
Face Interest Maturity
Amount Issuer Rate Date Value
- -------------------------------------------------------------------------------
U.S. TREASURY BILLS
$1,535,000 U.S. Treasury Bills 1.080% 07-03-03 $ 1,534,908
140,000 U.S. Treasury Bills 1.115% 07-03-03 139,992
850,000 U.S. Treasury Bills 1.045% 07-10-03 849,778
725,000 U.S. Treasury Bills 1.050% 07-10-03 724,810
750,000 U.S. Treasury Bills 0.840% 07-17-03 749,720
200,000 U.S. Treasury Bills 1.015% 07-24-03 199,870
1,000,000 U.S. Treasury Bills 1.055% 07-24-03 999,326
675,000 U.S. Treasury Bills 1.010% 08-14-03 674,167
375,000 U.S. Treasury Bills 1.060% 08-14-03 374,514
975,000 U.S. Treasury Bills 1.130% 08-14-03 973,654
1,150,000 U.S. Treasury Bills 0.910% 08-21-03 1,148,517
125,000 U.S. Treasury Bills 1.000% 08-21-03 124,823
2,175,000 U.S. Treasury Bills 1.050% 08-21-03 2,171,765
1,200,000 U.S. Treasury Bills 1.070% 08-21-03 1,198,181
675,000 U.S. Treasury Bills 1.080% 08-21-03 673,967
1,550,000 U.S. Treasury Bills 1.020% 08-28-03 1,547,453
$ 250,000 U.S. Treasury Bills 0.835% 09-11-03 $ 249,583
1,300,000 U.S. Treasury Bills 1.000% 09-11-03 1,297,400
350,000 U.S. Treasury Bills 0.795% 09-18-03 349,389
750,000 U.S. Treasury Bills 0.870% 09-25-03 748,441
1,100,000 U.S. Treasury Bills 0.980% 10-02-03 1,097,215
----------
TOTAL INVESTMENTS
AT AMORTIZED COST -- 96.8% $17,827,473
Other Assets, Less Liabilities -- 3.2% 592,445
------------
Net Assets -- 100.0% $18,419,918
============
See notes to financial statements
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Total investments, at amortized cost
(Note 1A).............................. $ 17,827,473
Cash.................................... 543,326
Receivable from investment adviser...... 62,387
Interest receivable..................... 117
Other assets............................ 6,283
------------
Total assets.......................... $ 18,439,586
------------
LIABILITIES:
Distributions payable................... $ 3,858
Transfer agent fee payable.............. 4,000
Accrued expenses and other liabilities.. 11,810
------------
Total liabilities..................... $ 19,668
------------
NET ASSETS (consisting of paid-in capital) $ 18,419,918
==============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................. 18,415,905
==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST.................. $ 1.00
==============
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income........................ $ 100,081
------------
Expenses -
Investment adviser fee (Note 3)........ $ 30,008
Administrative fee (Note 3)............ 6,002
Compensation of Trustees not employees of
the investment adviser or administrator 4,800
Custodian fee (Note 1C)................ 25,597
Transfer and dividend disbursing agent fees 9,249
Shareholder Communications............. 2,042
Printing............................... 1,312
Audit services......................... 30,500
Legal services......................... 2,410
Registration costs..................... 12,841
Miscellaneous.......................... 6,226
------------
Total expenses........................ $ 130,987
------------
Deduct -
Preliminary allocation of expenses to investment
adviser (Note 3)...................... $ (62,387)
Preliminary reduction of investment adviser fee
(Note 3).............................. (30,008)
------------
Total deductions...................... $ (92,395)
------------
Net expenses.......................... $ 38,592
------------
Net investment income............... $ 61,489
------------
REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments sold... $ 525
------------
Net increase in net assets from operations $ 62,014
============
See notes to financial statements
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)
- -------------------------------------------------------------------------------
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
Net investment income...................................................... $ 61,489 $ 220,545
Net realized gain (loss) on investments ................................... 525 (341)
------------ ------------
Net increase in net assets resulting from operations..................... $ 62,014 $ 220,204
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income................................................. $ (59,731) $ (279,831)
------------ ------------
Total distributions...................................................... $ (59,731) $ (279,831)
------------ ------------
Fund share transactions+ -
Proceeds from shares sold.................................................. $ 24,085,665 $ 36,968,761
Reinvestment of dividends.................................................. 35,043 156,734
Cost of shares reacquired.................................................. (23,071,734) (38,281,095)
------------ ------------
Net increase (decease) in net assets from fund share transactions.......... $ 1,048,974 $ (1,155,600)
------------ ------------
Net decrease in net assets............................................... $ 1,051,257 $ (1,215,227)
NET ASSETS:
At beginning of period....................................................... 17,368,661 18,583,888
------------ ------------
At end of period............................................................. $ 18,419,918 $ 17,368,661
============= =============
+ For WTMM, the Fund share transactions are at a net asset value of $1.00 per
share.
See notes to financial statements
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)
- -------------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS June 30, 2003 2002(5) 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
Income from investment operations:
Net investment income(1) ................. 0.0035 0.0130 0.0359 0.0530 0.0420 0.0460
Net realized gain on investments sold....... - (+) 0.0263(+) 0.0004 -- -- -- (+)
-------- -------- -------- -------- -------- --------
Total income from investment operations..... $ 0.0035 $ 0.0393 $ 0.0363 $ 0.0530 $ 0.0420 $ 0.0460
Less distributions:
Distributions from net investment income.... $(0.0035) $ (0.0393) $ (0.0359) $ (0.0530) $ (0.0420) $ (0.0460)
Distributions from net realized gain........ - -- (0.0004) -- -- --
-------- -------- -------- -------- -------- --------
Total distributions......................... $(0.0035) $ (0.0393) $ (0.0363) $ (0.0530) $ (0.0420) $ (0.0460)
-------- -------- -------- -------- -------- --------
Net asset value, end of period................. $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= ========= =========
Total return(2) ............................... 0.70%(6) 1.61% 3.70% 5.44% 4.29% 4.73%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted)..... $18,420 $ 17,369 $ 18,523 $43,608 $62,527 $91,323
Ratio of net expenses to average net assets 0.45%(6) 0.46% 0.47% 0.46% 0.45% 0.45%
Ratio of net expenses after custodian fee
reduction to average net assets(3)(4) .... 0.45%(6) 0.45% 0.45% 0.45% 0.45% 0.45%
Ratio of net investment income to
average net assets........................ 0.72%(6) 1.28% 3.93% 5.33% 4.19% 4.61%
- -------------------------------------------------------------------------------------------------------------------------------
(1)During each of the above periods, the investment adviser voluntarily reduced
its fee and in certain periods was allocated a portion of the operating
expenses. Had such actions not been undertaken, net investment income per
share and the ratios would have been as follows:
2003 2002 2001 2000 1999 1998
----------------------------------------------------------------------
Net investment income per share................ $(0.0018) $ 0.0056 $ 0.0330 $ 0.0505 $ 0.0402 $ 0.0444
========= ========= ========= ========= ========= =========
Ratios (as a percentage of average net assets):
Expenses.................................... 1.53%(6) 1.18% 0.88% 0.71% 0.63% 0.61%
========= ========= ========= ========= ========= =========
Expenses after custodian fee reduction(3) .. 1.53%(6) 1.17% 0.86% 0.70% 0.63% 0.61%
========= ========= ========= ========= ========= =========
Net investment income (loss) ............... (0.36%)(6) 0.55% 3.52% 5.08% 4.01% 4.45%
========= ========= ========= ========= ========= =========
- -----------------------------------------------------------------------------------------------------------------------------------
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
(3)Custodian fees were reduced by credits resulting from cash balances the fund
maintained with the custodian (Note 1C). The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits.
(4)Under a written agreement in effect for the current fiscal year, Wright
waives advisory fees and/or assumes operating expenses to the extent
necessary to limit the expense ratio to 0.45% after custodian fee credits are
applied.
(5)Certain of the per share data are based on average shares outstanding.
(6)Annualized.
+ Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of fund shares and
the amounts per share of realized and unrealized gains and losses at such
times.
WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited)
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield
- -------------------------------------------------------------------------------------------------------------------------------
MORTAGE-BACKED SECURITIES
$ 289,226 FHLMC Gold Balloon #M90710 5.000% 03-01-07 $103.16 $ 298,391 4.8%
236,278 FHLMC Gold Balloon #M90724 5.500% 05-01-07 102.98 243,321 5.3%
604,567 FHLMC Gold Pool #M90767 4.500% 11-01-07 103.36 624,912 4.4%
939,808 FHLMC Gold Pool #M90796 4.000% 02-01-08 103.00 968,041 3.9%
726,334 FHLMC Gold Pool #M90802 4.000% 03-01-08 103.00 748,155 3.9%
301,689 FNMA Pool #254227 5.000% 02-01-09 103.16 311,236 4.8%
U.S. GOVERNMENT AGENCIES
$ 3,100,000 FHLMC 1.875% 01-15-05 $100.93 $ 3,129,004 1.9%
1,000,000 FHLMC 2.875% 09-26-05 100.43 1,004,358 2.9%
2,000,000 FHLMC 5.250% 01-15-06 108.92 2,178,484 4.8%
2,000,000 FNMA 3.000% 06-15-04 101.75 2,035,048 2.9%
1,000,000 FNMA 1.556% 07-15-04 100.04 1,000,480 1.6%
2,270,000 FNMA 3.500% 09-15-04 102.85 2,334,795 3.4%
2,500,000 FNMA 3.875% 03-15-05 104.43 2,610,977 3.7%
1,500,000 FNMA 2.875% 10-15-05 103.04 1,545,640 2.8%
1,070,000 FNMA 5.250% 06-15-06 109.88 1,175,818 4.8%
3,100,000 FHMA 1.750% 06-16-06 99.72 3,091,490 1.8%
750,000 FNMA 4.375% 10-15-06 107.83 808,728 4.1%
700,000 FNMA 5.125% 02-14-07 105.50 738,520 4.9%
U.S. TREASURIES
$ 1,150,000 U.S. Treasury Notes 3.625% 03-31-04 $102.00 $ 1,173,046 3.6%
3,800,000 U.S. Treasury Notes 6.750% 05-15-05 110.16 4,186,088 6.1%
1,000,000 U.S. Treasury Notes 4.625% 05-15-06 108.43 1,084,336 4.3%
-----------
TOTAL INVESTMENTS (identified cost, $30,614,971) - 100.7% $31,290,868
Other Assets, Less Liabilities -- (0.7%) (211,985)
-----------
Net Assets -- 100.0% $31,078,883
============
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
See notes to financial statements
Wright U.S. Government Near Term Fund (WNTB)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments, at value
(identified cost of $30,614,971) (Note 1A) $ 31,290,868
Cash................................... 471
Receivable for fund shares sold........ 25,000
Receivable from investment adviser..... 9,698
Interest receivable.................... 235,283
Other assets........................... 2,372
------------
Total assets.......................... $ 31,563,692
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 14,997
Demand Note payable..................... 432,000
Distributions payable................... 23,335
Transfer agent fee payable.............. 5,204
Accrued expenses and other liabilities.. 9,273
------------
Total liabilities..................... $ 484,809
------------
NET ASSETS................................ $ 31,078,883
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for Fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $31,383,538
Accumulated undistributed net realized loss on
investments (computed on the basis of
identified cost)....................... (882,604)
Unrealized appreciation on investments
(computed on the basis of identified cost) 675,897
Distributions in excess of net investment
income................................. (97,948)
------------
Net assets applicable to outstanding
shares................................ $31,078,883
==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING. 2,975,602
==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST.................. $ 10.44
==============
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income........................ $ 542,825
------------
Expenses -
Investment adviser fee (Note 3)........ $ 73,072
Administrator fee (Note 3)............. 14,615
Compensation of Trustees not employees of
the investment adviser or administrator 4,802
Custodian fee (Note 1C)................ 25,056
Distribution expenses (Note 4)......... 40,583
Transfer and dividend disbursing agent fees 10,560
Shareholder Communications............. 3,775
Printing............................... 2,056
Audit services......................... 36,600
Legal services......................... 5,760
Registration costs..................... 7,729
Miscellaneous.......................... 3,361
------------
Total expenses........................ $ 227,969
------------
Deduct -
Preliminary reduction of custodian fee
(Note 1C)............................. $ (1,632)
Preliminary allocation of expenses to the
investment adviser (Note 3)........... (9,698)
Preliminary reduction of investment adviser
fee (Note 3).......................... (21,839)
Preliminary reduction of distribution expenses by
principal underwriter (Note 4)........ (40,583)
------------
Total deductions...................... $ (73,752)
------------
Net expenses.......................... $ 154,217
------------
Net investment income............... $ 388,608
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 345,315
Change in unrealized appreciation (depreciation)
of investments......................... (390,430)
------------
Net realized and unrealized loss of
investments........................... $ (45,115)
------------
Net increase in net assets from operations $ 343,493
============
See notes to financial statements
WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB)
- -------------------------------------------------------------------------------
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31,2002
- ----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income...................................................... $ 388,608 $ 1,071,791
Net realized gain on investments........................................... 345,315 300,660
Change in unrealized appreciation (deprecation) on investments............. (390,430) 426,012
------------ ------------
Net increase in net assets resulting from operations..................... $ 343,493 $ 1,798,463
------------ ------------
Distributions to shareholders (Note 2)
From net investment income................................................. $ (474,360) $ (1,163,783)
------------ ------------
Total distributions...................................................... $ (474,360) $ (1,163,783)
------------ ------------
Net increase (decrease) in net assets from fund share transactions (Note 5).. $ (2,629,714) $ (2,820,387)
------------ ------------
Net decrease in net assets............................................... $ (2,760,581) $ (2,185,707)
NET ASSETS:
At beginning of period....................................................... 33,839,464 36,025,171
------------ ------------
At end of period............................................................. $ 31,078,883 $ 33,839,464
============= =============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED
IN NET ASSETS AT END OF PERIOD............................................... $ (97,948) $ (12,196)
============= =============
See notes to financial statements
WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB)
- -------------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
-----------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS June 30, 2003 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........ $ 10.490 $ 10.29 $ 10.080 $ 9.930 $ 10.270 $ 10.240
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1) ............... $ 0.123 $ 0.349 $ 0.480(7) $ 0.525 $ 0.534 $ 0.549
Net realized and unrealized gain (loss).. (0.021) 0.200 0.195(7) 0.143 (0.343) 0.048(+)
-------- -------- -------- -------- -------- --------
Total income from investment operations $ 0.102 $ 0.549 $ 0.675 $ 0.668 $ 0.191 $ 0.597
-------- -------- -------- -------- -------- --------
Less distributions:
Distributions from investment income... $ (0.152) $ (0.349) $ (0.465) $ (0.518) $ (0.531) $ (0.567)
-------- -------- -------- -------- -------- --------
Total distributions.................... $ (0.152) $ (0.349) $ (0.465) $ (0.518) $ (0.531) $ (0.567)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 10.440 $ 10.490 $ 10.290 $ 10.080 $ 9.930 $ 10.270
========= ========= ========= ========= ========= ========
Total return(2) ............................ 0.98% 5.42% 6.82% 6.94% 1.91% 5.98%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted).. $ 31,079 $ 33,839 $ 36,025 $ 39,198 $ 52,825 $ 91,922
Ratio of net expenses to average net assets 0.96%(8) 0.97%(3) 0.97%(3) 0.98%(3) 0.91%(3) 0.88%(3)
Ratio of net expenses after custodian fee
reduction to average net assets(4) .. 0.95%(6)(8) 0.95%(3)(6) 0.95%(3)(6) 0.95%(3)(6) 0.90%(3) 0.87%(3)
Ratio of net investment income to average
net assets............................ 2.39%(8) 3.10% 4.40% 5.27% 5.27% 5.38%
Portfolio turnover rate ................ 58% 64% 92%(5) 65%(5) 0%(5) 10%(5)
- -----------------------------------------------------------------------------------------------------------------------------------
(1)For certain periods presented, the operating expenses of the fund were
reduced by an allocation of expenses to the investment adviser, a reduction
in distribution fees by the principal underwriter, a reduction in
administrator fees, or a combination thereof. Had such action not been
undertaken, net investment income per share and the ratios would have been as
follows:
2003 2002 2001 2000 1999 1998
--------------------------------------------------------------------------
Net investment income per share........ $ 0.098 $ 0.323 $ 0.452 $ 0.511 $ 0.526 $ 0.546
========= ========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses ............................ 1.40%(8) 1.20%(3) 1.22%(3) 1.13%(3) 0.99%(3) 0.91%(3)
========= ========= ========= ========= ========= =========
Expenses after custodian fee reduction(4) 1.39%(8) 1.18%(3) 1.20%(3) 1.10%(3) 0.98%(3) 0.90%(3)
========= ========= ========= ========= ========= =========
Net investment income................ 1.95%(8) 2.87% 4.15% 5.13% 5.19% 5.35%
========= ========= ========= ========= ========= =========
- ------------------------------------------------------------------------------------------------------------------------------
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
(3)Includes each fund's share of its corresponding portfolio's allocated expenses.
(4)Custodian fees were reduced by credits resulting from cash balances the fund
maintained with the custodian (Note 1C). The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits.
(5)Represents portfolio turnover rate of the fund's corresponding portfolio.
(6)Under a written agreement, Wright waives all or a portion of either its
advisory and/or distribution fees and assumes operating expenses to the
extent necessary to limit expense ratios to 0.95% after custodian fee credits
are applied.
(7)Reporting guidelines require the funds to disclose the effects of
implementing the change in accounting for amortization of premium and
discount on debt securities. If adjustments were not made, net investment
income per share would have been $0.491 and net realized and unrealized gain
(loss) per share would have been $0.184.
(8)Annualized.
+ Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of Fund shares and
the amounts per share of realized and unrealized gains and losses at such
times.
See notes to financial statements
WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND (WUSGI)
- -------------------------------------------------------------------------------
Portfolio of Investments - June 30, 2003 (unaudited)
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield
- ----------------------------------------------------------------------------------------------------------------------------------
MORTAGE-BACKED SECURITIES
$ 47,256 FHLMC Gold Pool #M90724 5.500% 05-01-07 $102.98 $ 48,664 5.3%
604,567 FHLMC Gold Pool #M90767 4.500% 11-01-07 103.36 624,912 4.4%
242,111 FHLMC Gold Pool #M90802 4.000% 03-01-08 103.00 249,385 3.9%
150,844 FNMA Pool #254227 5.000% 02-01-09 103.16 155,618 4.8%
325,599 FNMA Pool #254546 5.500% 12-01-17 103.91 338,336 5.3%
243,383 FNMA Pool #663689 5.000% 01-01-18 103.45 251,790 4.8%
U.S. GOVERNMENT AGENCIES
$ 1,200,000 FHLB 3.625% 10-15-04 $103.11 $ 1,237,415 3.5%
200,000 FHLMC 1.875% 01-15-05 100.93 201,871 1.9%
400,000 FHLMC 2.875% 09-26-05 100.43 401,743 2.9%
550,000 FHLMC 5.125% 07-15-12 110.52 607,895 4.6%
320,000 FHLMC 4.000% 06-12-13 98.38 314,820 4.1%
750,000 FNMA 3.000% 06-15-04 101.75 763,143 2.9%
1,350,000 FNMA 3.875% 03-15-05 104.43 1,409,928 3.7%
1,250,000 FNMA 2.875% 10-15-05 103.04 1,288,034 2.8%
1,500,000 FNMA 1.750% 06-16-06 99.72 1,495,882 1.8%
1,180,000 FNMA 2.875% 05-19-08 100.44 1,185,204 2.9%
250,000 FNMA 5.375% 11-15-11 112.66 281,663 4.8%
175,000 FNMA 4.375% 09-15-12 104.86 183,512 4.2%
U.S. TREASURIES
$ 1,600,000 U.S. Treasury Notes 6.750% 05-15-05 $110.16 $ 1,762,563 6.1%
200,000 U.S. Treasury Notes 4.625% 05-15-06 108.43 216,867 4.3%
1,500,000 U.S. Treasury Notes 3.000% 11-15-07 103.17 1,547,696 2.9%
1,150,000 U.S. Treasury Notes 5.000% 08-15-11 112.20 1,290,337 4.5%
-----------
Total Investments (identified cost, $15,490,631) - 97.6% $15,857,278
Other Assets, less Liabilities - 2.4% 382,172
-----------
Net Assets - 100.0% $16,239,450
============
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
See notes to financial statements
WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND (WUSGI)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments, at value
(identified cost of $15,490,631) (Note 1A) $ 15,857,278
Cash.................................... 280,614
Receivable from investment adviser...... 16,801
Interest receivable..................... 109,374
Other assets............................ 2,460
------------
Total assets.......................... $ 16,266,527
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 230
Distributions payable................... 12,009
Transfer agent fee payable.............. 3,802
Accrued expenses and other liabilities.. 11,036
------------
Total liabilities..................... $ 27,077
------------
NET ASSETS................................ $ 16,239,450
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $15,691,709
Accumulated undistributed net realized loss
on investments (computed on the basis of
identified cost....................... 384,548
Unrealized appreciation on investments
(computed on the basis of identified cost) 366,647
Distributions in excess of net investment
income................................ (203,454)
------------
Net assets applicable to outstanding shares $16,239,450
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 1,170,153
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $ 13.88
============
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income ....................... $ 115,316
------------
Expenses -
Investment adviser fee (Note 3)........ $ 35,531
Administration fee (Note 3)............ 7,106
Compensation of Trustees not employees of
the investment adviser or administrator 4,800
Custodian fee (Note 1C)................ 21,780
Distribution expenses (Note 4)......... 19,742
Transfer and dividend disbursing agent fees 8,895
Shareholder Communications............. 1,916
Printing............................... 1,527
Audit services......................... 33,750
Legal services......................... 2,692
Registration costs..................... 8,316
Miscellaneous.......................... 1,876
------------
Total expenses........................ $ 147,931
------------
Deduct -
Preliminary reduction of custodian fee
(Note 1C)............................. $ (829)
Preliminary allocation of expenses to
investment adviser (Note 3)........... (16,801)
Preliminary reduction of investment adviser fee
(Note 3).............................. (35,531)
Preliminary reduction of distribution expenses by
principal underwriter (Note 4)........ (19,742)
------------
Total deductions...................... $ (72,903)
------------
Net expenses.......................... $ 75,028
------------
Net investment income............... $ 40,288
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 670,987
Change in unrealized appreciation (depreciation)
of investments......................... (337,163)
------------
Net realized and unrealized gain of
investments........................... $ 333,824
------------
Net increase in net assets from operations $ 374,112
============
See notes to financial statements
WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND (WUSGI)
- -------------------------------------------------------------------------------
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31, 2002
- ---------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income...................................................... $ 40,288 $ 433,981
Net realized gain on investments........................................... 670,987 478,964
Change in unrealized appreciation (depreciation) on investments............ (337,163) (78,322)
------------ ------------
Net increase in net assets resulting from operations..................... $ 374,112 $ 834,623
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income................................................. $ (275,981) $ (474,533)
From net realized gain..................................................... -- (336,443)
------------ ------------
Total distributions...................................................... $ (275,981) $ (810,976)
------------ ------------
Net increase (decrease) in net assets from fund share transactions (Note 5).. $ 625,922 $ 5,322,697
------------ ------------
Net increase in net assets............................................... $ 724,053 $ 5,346,344
NET ASSETS:
At beginning of period....................................................... 15,515,397 10,169,053
------------ ------------
At end of period............................................................. $ 16,239,450 $ 15,515,397
============= =============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED
IN NET ASSETS AT END OF PERIOD............................................... $ (203,454) $ 32,239
============= =============
See notes to financial statements
WRIGHT U.S. GOVERNMENT INTERMEDIATE FUND (WUSGI)
- -------------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS June 30, 2003 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........ $ 13.790 $ 13.630 $ 13.750 $ 12.890 $ 14.400 $ 13.950
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1) ................ $ 0.037 $ 0.575 $ 0.651(7) $ 0.737 $ 0.722 $ 0.724
Net realized and unrealized gain (loss).. 0.292 0.496 0.006(7) 0.842 (1.282) 0.632
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations............. $ 0.329 $ 1.071 $ 0.657 $ 1.579 $ (0.560) $ 1.356
-------- -------- -------- -------- -------- --------
Less distributions:
Distributions from investment income..... $ (0.239) $ (0.605) $ (0.701) $ (0.719) $ (0.716) $ (0.741)
Distributions from capital gains......... - (0.306) (0.076) - (0.234) (0.165)
-------- -------- -------- -------- -------- --------
Total distributions.................... $ (0.239) $ (0.911) $ (0.777) $ (0.719) $ (0.950) $ (0.906)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 13.880 $ 13.790 $ 13.630 $ 13.750 $ 12.890 $ 14.400
========= ========= ========= ========= ========= =========
Total return(2) ............................ 2.41% 8.07% 5.40% 12.61% (3.97%) 9.95%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted).. $ 16,239 $ 15,515 $ 10,169 $ 16,498 $ 31,192 $ 67,256
Ratio of net expenses to average net assets 0.96%(8) 1.01%(3) 1.02%(3) 0.97%(3) 0.92%(3) 0.94%(3)
Ratio of net expenses after custodian fee
reduction to average net assets(4) . 0.95%(8) 0.95%(3)(6) 0.95%(3)(6) 0.95%(3)(6) 0.90%(3) 0.90%(3)
Ratio of net investment income
to average net assets............... 0.51%(8) 3.95% 5.11% 5.55% 5.26% 5.09%
Portfolio turnover rate ................ 74% 98%(5) 27%(5) 74%(5) 0%(5) 7%(5)
- ---------------------------------------------------------------------------------------------------------------------------------
(1)For each of the periods presented, the operating expenses of the fund were
reduced by an allocation of expenses to the investment adviser, a reduction
in distribution fees by the distributor, a reduction in administrator fees,
or a combination thereof. Had such action not been undertaken, the net
investment income per share and the ratios would have been as follows:
2003 2002 2001 2000 1999 1998
- -------------------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ (0.027) $ 0.477 $ 0.547 $ 0.700 $ 0.703 $ 0.721
========= ========= ========= ========= ========= =========
Ratios (as a percentage of average net assets):
Expenses ................................ 1.87%(8) 1.62%(3) 1.84%(3) 1.26%(3) 1.06%(3) 0.96%(3)
========= ========= ========= ========= ========= =========
Expenses after custodian fee reduction(4) 1.86%(8) 1.56%(3) 1.77%(3) 1.24%(3) 1.04%(3) 0.92%(3)
========= ========= ========= ========= ========= =========
Net investment income.................... (0.40%)(8) 3.28% 4.29% 5.27% 5.12% 5.07%
========= ========= ========= ========= ========= =========
- ------------------------------------------------------------------------------------------------------------------------------
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
(3)Includes each fund's share of its corresponding portfolio's allocated expenses.
(4)Custodian fees were reduced by credits resulting from cash balances the fund
and the portfolio maintained with the custodian (Note 1C). The computation of
net expenses to average daily net assets reported above is computed without
consideration of such credits.
(5)Represents portfolio turnover rate at the fund's corresponding portfolio.
(6)Under a written agreement, Wright waives all or a portion of either its
advisory and/or distribution fees and assumes operating expenses to the
extent necessary to limit expense ratios to 0.95% after custodian fee credits
are applied.
(7)Reporting guidelines require the fund to disclose the effects of
implementing the change in accounting for the amortization of premium and
discount on debt securities. If the adjustments were not made, net investment
income per share would have been $0.713 and net realized and unrealized gain
(loss) per share would have been $(0.056).
(8)Annualized.
See notes to financial statements
WRIGHT TOTAL RETURN BOND FUND (WTRB)
- ------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited)
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield
- ----------------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES
- -------------------------
$ 700,000 Citibank Credit Card Master Trust 6.900% 10-15-07 $111.31 $ 779,191 6.2%
935,000 MBNA Master Credit Card Tr.,
Ser. 2000-AA 7.350% 07-16-07 109.46 1,023,540 6.7%
------------
Total Asset-Backed Securities (identified cost, $1,634,361) - 4.3% $ 1,802,731
------------
CORPORATE BONDS
- ----------------
AUTO
$ 160,000 DaimlerChrysler North American
Holding Co. 7.200% 09-01-09 $113.81 $ 182,099 6.3%
170,000 General Motors Corp. 8.800% 03-01-21 103.67 176,248 8.5%
BLDG-RESIDENTIAL/COMMER
$ 150,000 Centex Corp. 7.875% 02-01-11 $121.14 $ 181,719 6.5%
CABLE TV
$ 145,000 A T & T Broadband Corp. 8.375% 03-15-13 $125.62 $ 181,980 6.7%
155,000 Cox Communications, Inc. 7.125% 10-01-12 119.62 185,415 6.0%
ELECTRIC-INTEGRATED
$ 180,000 American Electric Power Co., Inc. 6.125% 05-15-06 $109.70 $ 197,464 5.6%
165,000 Dominion Resources, Inc. 6.300% 03-15-33 106.04 174,973 5.9%
435,000 PPL Electric Utilities 5.875% 08-15-07 110.47 480,546 5.3%
155,000 Progress Energy, Inc. 7.100% 03-01-11 116.54 180,640 6.1%
BANKS
$ 500,000 Bank of New York Co., Inc. 6.375% 04-01-12 $116.32 $ 581,625 5.5%
600,000 Bank One Corp., Note 2.625% 06-30-08 98.42 590,561 2.7%
285,000 Royal Bank of Scotland 7.648% 08-31-49 127.39 363,071 6.0%
DIVERSIFIED FINANCIALS
$ 300,000 Boeing Capital Corp., Senior Note 7.375% 09-27-10 $118.66 $ 355,995 6.2%
340,000 CIT Group Holdings, Inc. 6.875% 11-01-09 113.58 386,176 6.1%
315,000 Ford Motor Credit Co. 7.375% 10-28-09 104.98 330,718 7.0%
440,000 General Elec Cap Corp. 6.125% 02-22-11 114.20 502,507 5.4%
550,000 Household Finance Corp. 8.000% 07-15-10 124.22 683,244 6.4%
500,000 International Lease Finance Corp. 5.125% 08-01-04 103.73 518,685 4.9%
500,000 Lehman Brothers Holdings, Inc. 7.750% 01-15-05 109.81 549,095 7.1%
540,000 Wells Fargo & Co. 4.800% 07-29-05 106.53 575,299 4.5%
FOOD-RETAIL
$ 155,000 Albertson's, Inc. 7.500% 02-15-11 $116.99 $ 181,350 6.4%
170,000 Safeway, Inc., Note 5.800% 08-15-12 107.42 182,618 5.4%
INSTRUMENTS-CONTROLS
$ 500,000 Honeywell International, Inc. 7.000% 03-15-07 $114.31 $ 571,580 6.1%
MEDICAL-HMO
$ 430,000 UnitedHealth Group, Inc. 5.200% 01-17-07 $108.99 $ 468,690 4.8%
MULTIMEDIA
$ 160,000 AOL Time Warner, Inc., Note 7.625% 04-15-31 $115.84 $ 185,351 6.6%
OIL & GAS
$ 360,000 Conoco, Inc. 6.350% 04-15-09 $117.02 $ 421,299 5.4%
350,000 ConocoPhilips 6.375% 03-30-09 116.65 408,295 5.5%
165,000 Repsol International Finance 7.450% 07-15-05 110.09 181,659 6.8%
145,000 Transocean Sedco Forex 7.500% 04-15-31 123.55 179,152 6.1%
PAPER & RELATED PRODUCTS
$ 160,000 Meadwestvaco Corp. 6.850% 04-01-12 $115.63 $ 185,008 5.9%
PIPELINES
$ 165,000 Duke Capital Corp., Senior Note 7.500% 10-01-09 114.54 $ 189,007 6.5%
PROPERTY/CASUALTY INS.
$ 170,000 Fund American Cos., Inc.,
Guar. Senior Note 5.875% 05-15-13 $104.75 $ 178,090 5.6%
TELECOM
$ 550,000 Ameritech Capital Corp. 6.150% 01-15-08 $113.50 $ 624,266 5.4%
155,000 AT & T Wireless 7.875% 03-01-11 118.31 183,383 6.7%
485,000 BellSouth Telecommunications, Inc. 6.375% 06-15-04 104.72 507,895 6.1%
130,000 British Telecom Plc 8.875% 12-15-30 136.96 178,054 6.5%
145,000 Deutsche Telekom International Finance 8.500% 06-15-10 123.03 178,406 6.9%
145,000 France Telecom SA 9.250% 03-01-11 126.07 182,810 7.3%
180,000 Sprint Capital Corp. 6.125% 11-15-08 108.68 195,628 5.6%
290,000 Verizon Global Funding Corp. 7.750% 12-01-30 127.14 368,707 6.1%
----------
Total Corporate Bonds (identified cost, $12,307,384) - 31.6% $13,129,308
----------
GOVERNMENT INTERESTS
- -----------------------
MORTGAGE-BACKED SECURITIES
$ 298,712 FHLMC Pool #27663 7.000% 06-01-29 $104.92 $ 313,419 6.7%
181,748 FHLMC Pool #E00903 7.000% 10-01-15 106.25 193,124 6.6%
206,466 FNMA Pool #479477 6.000% 01-01-29 104.14 215,014 5.8%
170,423 FNMA Pool #489357 6.500% 03-01-29 104.42 177,962 6.2%
197,671 FNMA Pool #535332 8.500% 04-01-30 107.76 213,017 7.9%
737,694 FNMA Pool #545407 5.500% 01-01-32 103.56 763,962 5.3%
422,279 FNMA Pool #597396 6.500% 09-01-31 104.31 440,496 6.2%
256,569 FNMA Pool #634823 6.500% 03-01-32 104.31 267,639 6.2%
730,150 FNMA Pool #663689 5.000% 01-01-18 103.45 755,371 4.8%
298,455 GNMA II Pool #2671 6.000% 11-20-28 104.40 311,615 5.7%
66,956 GNMA II Pool #2909 8.000% 04-20-30 106.95 71,616 7.5%
228,033 GNMA II Pool #2972 7.500% 09-20-30 105.69 241,015 7.1%
81,788 GNMA II Pool #2973 8.000% 09-20-30 106.95 87,480 7.5%
1,061,949 GNMA Pool #374892 7.000% 02-15-24 106.33 1,129,174 6.6%
209,889 GNMA Pool #376400 6.500% 02-15-24 105.60 221,657 6.2%
301,321 GNMA Pool #379982 7.000% 02-15-24 106.33 320,396 6.6%
457,678 GNMA Pool #410081 8.000% 08-15-25 108.49 $ 496,579 7.4%
241,695 GNMA Pool #427199 7.000% 12-15-27 105.88 255,931 6.6%
145,888 GNMA Pool #436214 6.500% 02-15-13 106.32 155,120 6.1%
166,815 GNMA Pool #442996 6.000% 06-15-13 105.40 175,825 5.7%
359,132 GNMA Pool #448490 7.500% 03-15-27 106.45 382,303 7.0%
639,540 GNMA Pool #458762 6.500% 01-15-28 105.19 672,743 6.2%
462,456 GNMA Pool #460726 6.500% 12-15-27 105.23 486,660 6.2%
348,623 GNMA Pool #463839 6.000% 05-15-13 105.40 367,454 5.7%
385,837 GNMA Pool #478072 6.500% 05-15-28 105.19 405,868 6.2%
194,156 GNMA Pool #488924 6.500% 11-15-28 105.19 204,236 6.2%
114,501 GNMA Pool #510706 8.000% 11-15-29 107.99 123,652 7.4%
U.S. GOVERNMENT AGENCIES
$ 500,000 FHLB 5.125% 03-06-06 $108.94 $ 544,701 4.7%
530,000 FHLB 5.800% 09-02-08 115.14 610,267 5.0%
425,000 FHLMC 4.000% 06-12-13 98.38 418,121 4.1%
1,000,000 FNMA 3.000% 06-15-04 101.75 1,017,524 2.9%
1,005,000 FNMA 1.750% 06-16-06 99.72 1,002,241 1.8%
1,040,000 FNMA 2.875% 05-19-08 100.44 1,044,586 2.9%
420,000 FNMA 6.250% 05-15-29 117.51 493,580 5.3%
955,000 Tennessee Valley Authority 6.000% 03-15-13 117.08 1,118,145 5.1%
300,000 Tennessee Valley Authority - Series E 6.250% 12-15-17 119.86 359,590 5.2%
U.S. TREASURIES
$ 745,000 U.S. Treasury Bonds 7.250% 05-15-16 $133.02 $ 991,025 5.5%
330,000 U.S. Treasury Bonds 6.125% 11-15-27 121.75 401,801 5.0%
2,600,000 U.S. Treasury Notes 3.625% 03-31-04 102.00 2,652,104 3.6%
1,110,000 U.S. Treasury Notes 4.625% 05-15-06 108.43 1,203,613 4.3%
2,520,000 U.S. Treasury Notes 3.000% 11-15-07 103.17 2,600,128 2.9%
1,950,000 U.S. Treasury Notes 5.000% 08-15-11 112.20 2,187,962 4.5%
-----------
Total Government Interests (identified cost, $25,064,126) - 62.9% $26,094,716
-----------
Total Investments (identified cost, $39,005,871) - 98.8% $41,026,755
Other assets, Less liabilities - 1.2% 489,057
-----------
Net Assets -- 100.0% $41,515,812
============
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
See notes to financial statements
WRIGHT TOTAL RETURN BOND FUND (WTRB)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments at value
(identified cost, $39,005,871) (Note 1A) $ 41,026,755
Cash.................................... 92,402
Receivable for fund shares issued....... 41,669
Receivable from investment adviser...... 14,455
Interest receivable..................... 416,092
Other assets............................ 3,174
------------
Total assets.......................... $ 41,594,547
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 30,463
Distributions payable................... 29,622
Transfer agent fee payable.............. 5,500
Accrued expenses and other liabilities.. 13,150
------------
Total liabilities..................... $ 78,735
------------
NET ASSETS................................ $ 41,515,812
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $ 41,663,726
Accumulated undistributed net realized loss
on investments (computed on the basis
of identified cost).................... (2,080,598)
Unrealized appreciation on investments
(computed on the basis of identified cost) 2,020,884
Distributions in excess of net investment
income................................. (88,200)
------------
Net assets applicable to outstanding
shares................................ $ 41,515,812
==============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................. 3,140,760
==============
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE OF
BENEFICIAL INTEREST..................... $ 13.22
==============
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income........................ $ 999,053
------------
Expenses -
Investment adviser fee (Note 3)........ $ 89,323
Administrator fee (Note 3)............. 13,895
Compensation of Trustees not employees of
the investment adviser or administrator 4,800
Custodian fee (Note 1C)................ 31,456
Distribution expenses (Note 4)......... 49,624
Transfer and dividend disbursing agent fees 9,702
Shareholder Communications............. 4,364
Printing............................... 1,916
Audit services......................... 31,900
Legal services......................... 4,229
Registration costs..................... 8,204
Miscellaneous.......................... 6,234
------------
Total expenses........................ $ 255,647
------------
Deduct -
Preliminary reduction of custodian
fee (Note 1C)......................... $ (2,924)
Preliminary allocation of expenses to the
investment adviser (Note 3)........... (14,455)
Preliminary reduction of distribution expenses by
principal underwriter (Note 4)........ (49,624)
------------
Total deductions...................... $ (67,003)
------------
Net expenses.......................... $ 188,644
------------
Net investment income............... $ 810,409
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 1,200,613
Change in unrealized appreciation (depreciation)
of investments......................... (478,636)
------------
Net realized and unrealized gain of
investments........................... $ 721,977
------------
Net increase in net assets from operations $ 1,532,386
============
See notes to financial statements
WRIGHT TOTAL RETURN BOND FUND (WTRB)
- -------------------------------------------------------------------------------
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31, 2002
- --------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income...................................................... $ 810,409 $ 2,302,609
Net realized gain on investments........................................... 1,200,613 509,400
Change in unrealized appreciation (depreciation) of investments............ (478,636) 1,129,199
------------ ------------
Net increase in net assets resulting from operations..................... $ 1,532,386 $ 3,941,208
------------ ------------
Distributions to shareholders (Note 2)
From net investment income................................................. $ (888,936) $(2,378,235)
------------ ------------
Total distributions...................................................... $ (888,936) $(2,378,235)
------------ ------------
Net increase (decrease) in net assets from fund share transactions (Note 5).. $ 1,468,781 $(12,779,874)
------------ ------------
Net increase (decrease) in net assets.................................... $ 2,112,231 $(11,216,901)
NET ASSETS:
At beginning of period....................................................... 39,403,581 50,620,482
------------ ------------
At end of period............................................................. $ 41,515,812 $ 39,403,581
============= =============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ (88,200) $ (9,673)
============= =============
See notes to financial statements
WRIGHT TOTAL RETURN BOND FUND (WTRB)
- ------------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS June 30, 2003 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........ $ 13.010 $ 12.550 $ 12.630 $ 12.100 $ 13.310 $ 12.930
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1) ................ $ 0.267 $ 0.639 $ 0.709(4) $ 0.712 0.679 $ 0.680
Net realized and unrealized gain (loss).. 0.235 0.461 (0.090)(4) 0.530 (1.190) 0.524
-------- -------- ---------- -------- -------- --------
Total income (loss) from investment
operations .......................... $ 0.502 $ 1.100 $ 0.619 $ 1.242 $ (0.511) $ 1.204
-------- -------- ----------- -------- -------- --------
Less distributions:
Distributions from investment income..... $ (0.292) $ (0.640) $ (0.699) $ (0.712) $ (0.680) $ (0.690)
Distributions from capital gains......... - -- - - (0.019) (0.134)
-------- -------- -------- -------- ---------- --------
Total distributions.................... $ (0.292) $ (0.640) $ (0.699) $ (0.712) $ (0.699) $ (0.824)
-------- -------- -------- -------- ---------- --------
Net asset value, end of period.............. $ 13.220 $ 13.010 $ 12.550 $ 12.630 $ 12.100 $ 13.310
========= ========= ========= ========= ========= =========
Total return(2) ............................ 3.89% 9.03% 4.96% 10.62% (3.91%) 9.56%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted).. $ 41,516 $ 39,404 $ 50,620 $ 65,775 $ 87,336 $115,937
Ratio of net expenses to average net assets 0.96%(6) 0.96% 0.96% 0.96% 0.90% 0.90%
Ratio of net expenses after custodian fee
reduction to average net assets(3) .... 0.95%(6) 0.95%(5) 0.95%(5) 0.95%(5) 0.90% 0.90%
Ratio of net investment income to average
net assets............................ 4.08%(6) 4.92% 5.44% 5.84% 5.36% 5.18%
Portfolio turnover rate.................. 50% 68% 38% 61% 31% 26%
- --------------------------------------------------------------------------------------------------------------------------------
(1)For the six months ended June 30, 2003 and for the years ended December 31,
2002, 2001 and 1999, the operating expenses of the fund were reduced by an
allocation of expenses to the investment adviser, and/or a reduction in
distribution expenses by the distributor. Had such action not been
undertaken, net investment income per share and the ratios would have been as
follows:
2003 2002 2001 1999
--------------------------------------------------------------
Net investment income per share.......... $ 0.244 $ 0.621 $ 0.701 $ 0.678
========== ========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses............................... 1.28%(6) 1.09% 1.02% 0.91%
========== ========== ========== ==========
Expenses after custodian fee reduction(3) 1.27%(6) 1.08% 1.01% 0.91%
========== ========== ========== ==========
Net investment income.................. 3.76%(6) 4.78% 6.38% 5.35%
========== ========== ========== ==========
- ------------------------------------------------------------------------------------------------------------------------------
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
(3)Custodian fees were reduced by credits resulting from cash balances the fund
maintained with the custodian (Note 1C). The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits.
(4)Reporting guidelines require the funds to disclose the effects of
implementing the change in accounting for amortization of premium and
discount on debt securities. If adjustments were not made, net investment
income per share would have been $0.716 and net realized and unrealized gain
(loss) per share would have been $(0.097).
(5)Under a written agreement, Wright waives all or a portion of either its
advisory and/or distribution fees and assumes operating expenses to the
extent necessary to limit expense ratios to 0.95% after custodian fee credits
are applied.
(6)Annualized.
See notes to financial statements
WRIGHT CURRENT INCOME FUND (WCIF)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2003 (unaudited)
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield
- ---------------------------------------------------------------------------------------------------------------------------------
(unaudited)
MORTGAGE-BACKED SECURITIES - 95.1%
$ 404,141 FHLMC Pool #27663 7.000% 06-01-29 $104.92 $ 424,039 6.7%
1,465,193 FNMA Pool #254546 5.500% 12-01-17 103.91 1,522,510 5.3%
537,053 FNMA Pool #535131 6.000% 03-01-29 104.14 559,287 5.8%
1,768,107 FNMA Pool #673315 5.500% 11-01-32 103.56 1,831,123 5.3%
1,083,273 FNMA Pool #696828 5.000% 04-01-18 103.45 1,120,691 4.8%
232,683 GNMA II Pool #1268 8.000% 07-20-23 107.97 251,247 7.4%
13,316 GNMA II Pool #1596 9.000% 04-20-21 111.21 14,810 8.1%
104,891 GNMA II Pool #1788 7.000% 07-20-24 105.89 111,069 6.6%
110,028 GNMA II Pool #2218 7.500% 05-20-26 106.14 116,794 7.1%
311,504 GNMA II Pool #2268 7.500% 08-20-26 106.14 330,660 7.1%
57,495 GNMA II Pool #2855 8.500% 12-20-29 107.16 61,617 7.9%
847,114 GNMA II Pool #3228 6.500% 04-20-32 104.50 885,262 6.2%
1,724,679 GNMA II Pool #3259 5.500% 07-20-32 103.92 1,792,358 5.3%
2,293,379 GNMA II Pool #3284 5.500% 09-20-32 103.92 2,383,375 5.3%
197,657 GNMA II Pool #545 7.500% 12-20-22 106.52 210,553 7.0%
211,952 GNMA II Pool #723 7.500% 01-20-23 106.46 225,648 7.0%
40 GNMA Pool #003026 8.000% 01-15-04 102.97 41 7.8%
17 GNMA Pool #003331 8.000% 01-15-04 102.97 18 7.8%
185 GNMA Pool #004183 8.000% 07-15-04 102.97 190 7.8%
214 GNMA Pool #004433 9.000% 11-15-04 103.72 222 8.7%
534 GNMA Pool #005466 8.500% 03-15-05 105.03 561 8.1%
36 GNMA Pool #005561 8.500% 04-15-05 105.03 38 8.1%
134 GNMA Pool #005687 7.250% 02-15-05 103.28 139 7.0%
225 GNMA Pool #005910 7.250% 02-15-05 103.28 232 7.0%
2,200 GNMA Pool #007003 8.000% 07-15-05 104.60 2,301 7.6%
40 GNMA Pool #007319 6.500% 10-15-04 101.64 40 6.4%
933 GNMA Pool #009106 8.250% 05-15-06 106.29 992 7.8%
1,149 GNMA Pool #009889 7.250% 02-15-06 104.08 1,196 7.0%
122 GNMA Pool #011191 7.250% 04-15-06 104.08 127 7.0%
853 GNMA Pool #012526 8.000% 11-15-06 105.86 903 7.6%
25,223 GNMA Pool #151443 10.000% 03-15-16 115.41 29,111 8.7%
5,288 GNMA Pool #153564 10.000% 04-15-16 115.41 6,104 8.7%
14,320 GNMA Pool #172558 9.500% 08-15-16 112.63 16,129 8.4%
42,554 GNMA Pool #176992 8.000% 11-15-16 109.36 46,537 7.3%
4,511 GNMA Pool #177784 8.000% 10-15-16 109.36 4,933 7.3%
4,315 GNMA Pool #188060 9.500% 10-15-16 112.63 4,860 8.4%
432 GNMA Pool #190959 8.500% 02-15-17 109.90 475 7.7%
14,481 GNMA Pool #192357 8.000% 04-15-17 109.38 15,840 7.3%
42,365 GNMA Pool #194057 8.500% 04-15-17 109.90 46,562 7.7%
14,171 GNMA Pool #194287 9.500% 03-15-17 112.71 15,973 8.4%
111,882 GNMA Pool #194926 8.500% 02-15-17 109.90 122,964 7.7%
3,751 GNMA Pool #196063 8.500% 03-15-17 109.90 4,123 7.7%
$ 34,593 GNMA Pool #203369 8.000% 12-15-16 $109.36 $ 37,832 7.3%
13,957 GNMA Pool #206740 10.000% 10-15-17 115.56 16,129 8.7%
48,783 GNMA Pool #206762 9.000% 04-15-21 111.57 54,430 8.1%
21,609 GNMA Pool #207019 8.000% 03-15-17 109.38 23,636 7.3%
5,235 GNMA Pool #208076 8.000% 04-15-17 109.38 5,726 7.3%
4,822 GNMA Pool #210520 10.500% 08-15-17 116.45 5,615 9.0%
21,472 GNMA Pool #211013 9.000% 01-15-20 111.63 23,970 8.1%
17,665 GNMA Pool #211231 8.500% 05-15-17 109.90 19,415 7.7%
11,088 GNMA Pool #212601 8.500% 06-15-17 109.90 12,187 7.7%
49,191 GNMA Pool #219335 8.000% 05-15-17 109.38 53,806 7.3%
89,406 GNMA Pool #220703 8.000% 05-15-17 109.38 97,793 7.3%
9,577 GNMA Pool #220917 8.500% 04-15-17 109.90 10,525 7.7%
194,436 GNMA Pool #222112 8.000% 01-15-22 109.08 212,095 7.3%
22,802 GNMA Pool #223126 10.000% 08-15-17 115.56 26,350 8.7%
18,804 GNMA Pool #223133 9.500% 07-15-17 112.71 21,195 8.4%
10,672 GNMA Pool #223348 10.000% 08-15-18 115.60 12,338 8.7%
1,688 GNMA Pool #223588 10.000% 12-15-18 115.60 1,951 8.7%
4,490 GNMA Pool #224078 10.000% 07-15-18 115.60 5,190 8.7%
15,028 GNMA Pool #228308 10.000% 01-15-19 115.65 17,380 8.6%
5,466 GNMA Pool #228483 9.500% 09-15-19 112.82 6,167 8.4%
12,132 GNMA Pool #230223 9.500% 04-15-18 112.78 13,682 8.4%
14,853 GNMA Pool #245580 9.500% 07-15-18 112.78 16,752 8.4%
5,922 GNMA Pool #247473 10.000% 09-15-18 111.26 6,589 9.0%
28,055 GNMA Pool #247681 9.000% 11-15-19 111.64 31,323 8.1%
5,931 GNMA Pool #247872 10.000% 09-15-18 115.60 6,856 8.7%
5,237 GNMA Pool #250412 8.000% 03-15-18 109.33 5,726 7.3%
7,689 GNMA Pool #251241 9.500% 06-15-18 112.78 8,671 8.4%
14,591 GNMA Pool #258911 9.500% 09-15-18 112.78 16,456 8.4%
16,014 GNMA Pool #260999 9.500% 09-15-18 112.78 18,061 8.4%
9,942 GNMA Pool #263439 10.000% 02-15-19 115.65 11,498 8.6%
6,265 GNMA Pool #265267 9.500% 08-15-20 112.87 7,071 8.4%
8,025 GNMA Pool #266983 10.000% 02-15-19 115.65 9,281 8.6%
3,720 GNMA Pool #273690 9.500% 08-15-19 112.82 4,198 8.4%
7,369 GNMA Pool #274489 9.500% 12-15-19 112.82 8,314 8.4%
2,430 GNMA Pool #275456 9.500% 08-15-19 112.82 2,741 8.4%
6,347 GNMA Pool #277205 9.000% 12-15-19 111.64 7,087 8.1%
28,843 GNMA Pool #285744 9.000% 05-15-20 111.63 32,199 8.1%
19,791 GNMA Pool #286556 9.000% 03-15-20 111.63 22,094 8.1%
7,926 GNMA Pool #289092 9.000% 04-15-20 111.63 8,848 8.1%
274 GNMA Pool #294209 9.000% 07-15-21 111.57 306 8.1%
13,459 GNMA Pool #301366 8.500% 06-15-21 109.60 14,752 7.8%
7,311 GNMA Pool #302713 9.000% 02-15-21 110.68 8,092 8.1%
2,649 GNMA Pool #302723 8.500% 05-15-21 109.60 2,904 7.8%
14,274 GNMA Pool #302933 8.500% 06-15-21 109.60 15,645 7.8%
$ 40,529 GNMA Pool #304512 8.500% 05-15-21 $109.60 $ 44,421 7.8%
62,953 GNMA Pool #305091 9.000% 07-15-21 111.57 70,240 8.1%
12,332 GNMA Pool #306693 8.500% 09-15-21 109.60 13,516 7.8%
12,503 GNMA Pool #308792 9.000% 07-15-21 111.57 13,951 8.1%
12,810 GNMA Pool #311087 8.500% 07-15-21 109.60 14,041 7.8%
5,813 GNMA Pool #314222 8.500% 04-15-22 109.52 6,367 7.8%
37,290 GNMA Pool #315187 8.000% 06-15-22 109.08 40,677 7.3%
162,705 GNMA Pool #315388 8.000% 02-15-22 109.08 177,482 7.3%
17,272 GNMA Pool #315754 8.000% 01-15-22 109.08 18,840 7.3%
46,649 GNMA Pool #316240 8.000% 01-15-22 109.08 50,885 7.3%
55,102 GNMA Pool #317351 8.000% 05-15-22 109.08 60,106 7.3%
80,489 GNMA Pool #319441 8.500% 04-15-22 109.52 88,153 7.8%
26,170 GNMA Pool #321806 8.000% 05-15-22 109.08 28,547 7.3%
98,684 GNMA Pool #321807 8.000% 05-15-22 109.08 107,647 7.3%
49,373 GNMA Pool #321976 8.500% 01-15-22 109.52 54,074 7.8%
112,312 GNMA Pool #323226 8.000% 06-15-22 109.08 122,513 7.3%
146,939 GNMA Pool #323929 8.000% 02-15-22 109.08 160,285 7.3%
54,777 GNMA Pool #325165 8.000% 06-15-22 109.08 59,752 7.3%
46,451 GNMA Pool #325651 8.000% 06-15-22 109.08 50,670 7.3%
78,988 GNMA Pool #329540 7.500% 08-15-22 107.14 84,635 7.0%
333,108 GNMA Pool #329982 7.500% 02-15-23 107.08 356,716 7.0%
43,446 GNMA Pool #331361 8.000% 11-15-22 109.08 47,392 7.3%
38,128 GNMA Pool #335746 8.000% 10-15-22 109.08 41,591 7.3%
90,064 GNMA Pool #335950 8.000% 10-15-22 109.08 98,244 7.3%
193,831 GNMA Pool #348213 6.500% 08-15-23 105.67 204,830 6.2%
193,766 GNMA Pool #350659 7.500% 06-15-23 107.08 207,498 7.0%
484,605 GNMA Pool #350938 6.500% 08-15-23 105.67 512,104 6.2%
422,884 GNMA Pool #352001 6.500% 12-15-23 105.67 446,880 6.2%
221,050 GNMA Pool #352110 7.000% 08-15-23 106.39 235,177 6.6%
343,945 GNMA Pool #367806 6.500% 09-15-23 105.67 363,462 6.2%
410,210 GNMA Pool #368238 7.000% 12-15-23 106.39 436,426 6.6%
845,911 GNMA Pool #372050 6.500% 02-15-24 105.60 893,341 6.2%
98,242 GNMA Pool #372379 8.000% 10-15-26 108.43 106,530 7.4%
469,986 GNMA Pool #376218 7.500% 08-15-25 106.83 502,130 7.0%
102,358 GNMA Pool #394805 7.500% 02-15-26 106.77 109,292 7.0%
221,804 GNMA Pool #405558 7.500% 01-15-26 106.77 236,830 7.0%
465,565 GNMA Pool #410215 7.500% 12-15-25 106.83 497,406 7.0%
117,141 GNMA Pool #414736 7.500% 11-15-25 106.83 125,153 7.0%
110,208 GNMA Pool #417225 7.500% 01-15-26 106.77 117,674 7.0%
345,926 GNMA Pool #420707 7.000% 02-15-26 105.97 366,594 6.6%
149,860 GNMA Pool #421829 7.500% 04-15-26 106.77 160,013 7.0%
195,369 GNMA Pool #424173 7.500% 03-15-26 106.77 208,604 7.0%
48,207 GNMA Pool #431036 8.000% 07-15-26 108.43 52,274 7.4%
310,058 GNMA Pool #431612 8.000% 11-15-26 108.43 336,217 7.4%
$ 112,855 GNMA Pool #442190 8.000% 12-15-26 $108.43 $ 122,376 7.4%
470,933 GNMA Pool #448490 7.500% 03-15-27 106.45 501,318 7.0%
345,056 GNMA Pool #449176 6.500% 07-15-28 105.19 362,970 6.2%
736,540 GNMA Pool #457100 6.500% 11-15-28 105.19 774,779 6.2%
959,310 GNMA Pool #458762 6.500% 01-15-28 105.19 1,009,114 6.2%
462,456 GNMA Pool #460726 6.500% 12-15-27 105.23 486,660 6.2%
310,237 GNMA Pool #462444 6.500% 12-15-27 105.23 326,474 6.2%
318,715 GNMA Pool #462623 6.500% 03-15-28 105.19 335,262 6.2%
269,515 GNMA Pool #469226 6.500% 03-15-28 105.19 283,507 6.2%
675,683 GNMA Pool #469615 6.500% 10-15-28 105.19 710,763 6.2%
2,996,493 GNMA Pool #471369 5.500% 05-15-33 104.37 3,127,590 5.3%
717,248 GNMA Pool #472028 6.500% 05-15-28 105.19 754,486 6.2%
603,276 GNMA Pool #480030 6.500% 06-15-28 105.19 634,596 6.2%
972,875 GNMA Pool #484195 6.500% 08-15-28 105.19 1,023,383 6.2%
1,776,620 GNMA Pool #486482 6.500% 09-15-28 105.19 1,868,857 6.2%
1,241,748 GNMA Pool #523002 6.500% 02-15-32 105.03 1,304,260 6.2%
561,802 GNMA Pool #538314 7.000% 02-15-32 105.65 593,561 6.6%
945,993 GNMA Pool #547605 6.500% 01-15-31 105.04 993,674 6.2%
691,037 GNMA Pool #552393 6.500% 02-15-32 105.03 725,826 6.2%
495,878 GNMA Pool #554203 7.000% 12-15-31 105.64 523,891 6.6%
762,895 GNMA Pool #570141 6.500% 12-15-31 105.04 801,348 6.2%
2,724,799 GNMA Pool #585467 6.000% 08-15-32 104.90 2,858,452 5.7%
1,770,578 GNMA Pool #587080 6.500% 05-15-32 105.03 1,859,712 6.2%
1,983,520 GNMA Pool #589580 5.500% 11-15-32 104.37 2,070,347 5.3%
1,982,156 GNMA Pool #595207 5.500% 12-15-32 104.37 2,068,924 5.3%
1,875,588 GNMA Pool #595606 6.000% 11-15-32 104.90 1,967,587 5.7%
364,622 GNMA Pool #780429 7.500% 09-15-26 106.80 389,439 7.0%
-----------
TOTAL INVESTMENTS (identified cost, $44,999,460) - 95.1% $49,512,866
-----------
Other Assets, less Liabilities - 4.9% 2,531,884
-----------
Net Assets - 100.0% $52,044,750
============
FHLMC - Federal Home Loan Mortgage
FNMA - Federal National Mortgage Association
GNMA - Government Naitonal Mortgage Association
See notes to financial statements
WRIGHT CURRENT INCOME FUND (WCIF)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments, at value
(identified cost of($44,999,460)(Note 1A) $ 49,512,866
Cash.................................. 2,403,510
Receivable for fund shares issued..... 676
Receivable from investment adviser.... 19,444
Interest receivable................... 248,878
Prepaid assets........................ 2,218
------------
Total assets.......................... $ 52,187,592
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 10,343
Distributions payable................... 111,792
Payable to affiliate for Trustees' fees. 2
Transfer agent fee payable.............. 6,450
Accrued expenses and other liabilities.. 14,255
------------
Total liabilities..................... $ 142,842
------------
NET ASSETS................................ $ 52,044,750
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $ 47,357,890
Accumulated undistributed net realized loss
on investments (computed on the basis of
identified cost)....................... 405,039
Unrealized appreciation on investments
(computed on the basis of identified cost) 4,513,406
Distributions in excess of net
investment income..................... (231,585)
------------
Net assets applicable to outstanding
shares................................ $ 52,044,750
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING........................... 4,877,972
==============
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE OF
BENEFICIAL INTEREST................... $ 10.67
==============
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2003 (unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income........................ $ 1,857,796
------------
Expenses -
Investment adviser fee (Note 3)........ $ 153,185
Administrator fee (Note 3)............. 30,637
Compensation of Trustees not employees of
the investment adviser or administrator 4,800
Custodian fee (Note 1C)
Standard shares (Note 1C)............. 37,197
Institutional shares (Note 1C)........ 4,138
Distribution expenses (Note 4)......... 68,623
Transfer and dividend disbursing agent fees
Standard shares....................... 9,695
Institutional shares.................. 4,052
Shareholder Communications............. 5,871
Printing............................... 3,168
Audit services......................... 36,600
Legal services......................... 7,338
Registration costs
Standard shares....................... 9,420
Institutional shares.................. 8,769
Miscellaneous.......................... 4,269
------------
Total expenses........................ $ 387,762
------------
Deduct -
Preliminary reduction of custodian
fee (Note 1C)......................... $ (8,231)
Preliminary allocation of expenses to
investment adviser (Note 3)........... (26,710)
Preliminary reduction of distribution expenses
by principal underwriter (Note 4)..... (39,737)
------------
Total deductions...................... $ (74,678)
------------
Net expenses.......................... $ 313,084
------------
Net investment income............... $ 1,544,712
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 1,501,701
Change in unrealized appreciation (depreciation)
of investments......................... (2,293,397)
------------
Net realized and unrealized gain
of investments........................ (791,696)
------------
Net increase in net assets from operations $ 753,016
============
See notes to financial statements
WRIGHT CURRENT INCOME FUND (WCIF)
- -------------------------------------------------------------------------------
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2003 Dec. 31, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income...................................................... $ 1,544,712 $ 3,968,028
Net realized gain (loss) on investments.................................... 1,501,701 (136,364)
Change in unrealized appreciation (depreciation) on investments............ (2,293,397) 1,762,726
------------ ------------
Net increase in net assets resulting from operations..................... $ 753,016 $ 5,594,390
------------ ------------
Distributions to shareholders (Note 2) -
Standard shares............................................................ $ (1,320,064) $ (2,850,468)
Institutional shares....................................................... (333,233) (876,513)
Tax return of capital
Standard shares............................................................ -- (184,992)
Institutional shares....................................................... -- (56,884)
------------ ------------
Total distributions...................................................... $ (1,653,297) $ (3,968,857)
------------ ------------
Net increase (decrease) in net assets from Fund share transactions
Standard shares............................................................ $ (6,284,932) $ 2,848,357
Institutional shares....................................................... (15,550,021) (3,221,642)
------------ ------------
Net decrease in net assets from fund share transactions.................. $(21,834,953) $ (373,285)
------------ ------------
Net increase (decrease) in net assets.................................... $(22,735,234) $ 1,252,248
NET ASSETS:
At beginning of period....................................................... 74,779,984 73,527,736
------------ ------------
At end of period............................................................. $ 52,044,750 $ 74,779,984
============= =============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED
IN NET ASSETS AT END OF PERIOD............................................... $ (231,585) $ (123,000)
============= =============
See notes to financial statements
WRIGHT CURRENT INCOME FUND (WCIF)
- -------------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS June 30, 2003 2002 2001(4) 2000(4) 1999(4) 1998
- -----------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........ $ 10.810 $ 10.580 $ 10.460 $ 10.090 $ 10.660 $ 10.630
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1) ............... $ 0.226 $ 0.565 $ 0.616 $ 0.631 $ 0.620 $ 0.646
Net realized and unrealized gain (loss).. (0.110) 0.231 0.120 0.372 (0.570) 0.028
-------- -------- -------- -------- -------- --------
Total income from
investment operations............. $ 0.116 $ 0.796 $ 0.736 $ 1.003 $ 0.050 $ 0.674
-------- -------- -------- -------- -------- --------
Less distributions:
Distributions from net investment income. $ (0.256) $ (0.555) $ (0.616) $ (0.633) $ (0.620) $ (0.644)
Tax return of capital.................... - (0.011) -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions.................. $ (0.256) $ (0.566) $ (0.616) $ (0.633) $ (0.620) $ (0.644)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 10.670 $ 10.810 $ 10.580 $ 10.460 $ 10.090 $ 10.660
========= ========= ========= ========= ========= =========
Total return(2) ............................ 1.08% 7.70% 7.18% 10.31% 0.52% 6.51%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted).. $ 52,045 $ 59,077 $ 54,966 $ 68,015 $ 76,452 $90,262
Ratio of net expenses to average net assets 0.98%(8) 0.97%(3) 0.95%(6) 0.95%(3)(6) 0.91%(3) 0.90%(3)
Ratio of net expenses after custodian fee
reduction to average net assets(6)(7) . 0.95%(8) 0.95%(3) -- -- -- --
Ratio of net investment income
to average net assets................. 4.43%(8) 5.28% 5.83% 6.22% 6.02% 6.03%
Portfolio turnover rate ................. 14% 36%(5) 4%(5) 6%(5) 0%(5) 1%(5)
- ---------------------------------------------------------------------------------------------------------------------------------
(1)For the six months ended June 30, 2003 and for the years ended December 31,
2002, 2001, 2000, 1999, and 1998, the operating expenses of the fund were
reduced by an allocation of expenses to the investment adviser or a reduction
in distribution expense by the distributor. Had such action not been
undertaken, net investment income per share and the ratios would have been as
follows:
2003 2002 2001 2000 1999 1998
--------------------------------------------------------- ----
Net investment income per share........ $ 0.224 $ 0.555 $ 0.609 $ 0.629 $ 0.615 $ 0.644
========= ========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses ............................ 1.20%(8) 1.06%(3) 1.02%(3) 0.97%(3) 0.96%(3) 0.92%(3)
========= ========= ========= ========= ========= =========
Expenses after custodian fee reduction(7) 1.17%(8) 1.04%(3) -- -- -- --
========= ========= ========= ========= ========= =========
Net investment income................ 4.21%(8) 5.19% 5.76% 6.20% 5.97% 6.01%
========= ========= ========= ========= ========= =========
- ----------------------------------------------------------------------------------------------------------------------------------
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
(3)Includes each fund's share of its corresponding portfolio's allocated expenses.
(4)Certain of the per share data are based on average shares outstanding.
(5)Represents portfolio turnover rate at the fund's corresponding portfolio.
(6)Under a written agreement in effect for the current fiscal year, Wright
waives all or a portion of either its advisory and/or distribution fees and
assumes operating expenses to the extent necessary to limit expense ratios to
0.95% after custodian fee credits are applied.
(7)Custodian fees were reduced by credits resulting from cash balances the fund
andor the portfolio maintained with the custodian (Note 1C). The computation
of net expenses to average daily net assets reported above is computed
without consideration of such credits.
(8)Annualized.
See notes to financial statements
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Income Trust (the Trust), issuer of Wright U.S. Treasury
Money Market Fund (WTMM) series, Wright U.S. Government Near Term Fund (WNTB)
series, Wright U.S. Government Intermediate Fund (WUSGI) series, Wright Total
Return Bond Fund (WTRB) series, and Wright Current Income Fund (WCIF) series
(collectively, the Funds), is registered under the Investment Company Act of
1940, as amended, as a diversified, open-end, management investment company.
WTMM seeks to provide as high a rate of current income as possible consistent
with the presentation of capital and maintenance of liquidity. WNTB seeks a high
level of income, which is normally above that available from short-term money
market instruments or funds. WUSGI seeks a high total return with an emphasis on
income. WTRB seeks a superior rate of total return, consisting of a high level
of income plus price appreciation. WCIF seeks a high level of current income
consistent with moderate fluctuations of principal. Prior to December 20, 2002,
WNTB, WUSGI, and WCIF invested all of their investable assets in interests in a
separate corresponding open-end management investment company (a Portfolio), a
New York Trust, having the same investment objective as its corresponding fund.
Subsequent to December 20, 2002, the Funds invest directly in securities rather
than through the Portfolio and maintain the same investment objective.
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.
A. Investment Valuations - Investments for which market quotations are readily
available are valued at current market value as furnished by a pricing
service. Investments for which valuations are not readily available will be
appraised at their fair value as determined in good faith by or at the
direction of the Trustees. Short-term obligations maturing in sixty days or
less are valued at amortized cost, which approximates market value. WTMM's
money market instruments are valued at amortized cost, which the Trustees
have determined in good faith constitutes market value. Use of amortized
cost is subject to the fund's compliance with certain conditions as
specified under Rule 2a-7 of the Investment Company Act of 1940.
B. Interest Income - Interest income consists of interest accrued and discount
earned (including both original issue and market discount) and amortization
of premium or discount on long-term debt securities when required for
federal income tax purposes. The income is accrued ratably to the date of
maturity on the investments of the funds.
C. Expense Reduction - The funds have entered into an arrangement with their
custodian agent whereby interest earned on uninvested cash balances is used
to offset custodian fees. All significant reductions are reported as a
reduction of total expenses in the Statement of Operations.
D. Federal Taxes - The Trust's policy is to comply with the provisions
of the Internal Revenue Code (the Code) available to regulated
investment companies and to distribute to shareholders each year all of
its taxable income, including any net realized gain on investments.
Accordingly, no provision for federal income or excise tax is necessary.
At December 31, 2002, the Trust, for federal income tax purposes, had
capital loss carryovers of $1,199,399(WNTB), $3,238,502 (WTRB),
$1,066,805 (WCIF), and $341 (WTMM) which will reduce taxable income
arising from future net realized gain on investments, if any,to the extent
permitted by the Code, and thus will reduce the amount of the distribution
to shareholders which would otherwise be necessary to relieve the
respective fund of any liability for federal income or excise tax.
Pursuant to the Code, such capital loss carryovers will expire
as follows:
12/31 WNTB WTRB WCIF WTMM
- -------------------------------------------------------------------------------
2003 $ 376,568 $ - $ 215,933 $ -
2004 - - 113,252 -
2005 188,862 - 19,428 -
2006 62,582 - - -
2007 297,581 - 66,159 -
2008 273,806 2,729,896 289,504 -
2009 - - 251,102 -
2010 - 508,606 111,427 341
At December 31, 2002, net capital losses of $3,266 for WNTB and $29,857 for
WCIF attributable to security transactions incurred after October 31, 2002
are treated as arising on the first day of the fund's current taxable year.
E. Use of Estimates - The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
F. Other - Investment transactions are accounted for on the date the
investments are purchased or sold.
G. Interim Financial Statements - The interim financial statements relating to
June 30, 2003 and for the period then ended have not been audited by
independent certified public accountants, but in the opinion of the Trust's
management reflect all recurring adjustments, necessary for the fair
presentation of the financial statements.
(2) DISTRIBUTIONS
Each fund's policy is to determine net income once daily, as of the close
of the New York Stock Exchange and the net income so determined is substantially
declared as a dividend to shareholders of record at the time of such
determination. Distributions of realized capital gains are made at least
annually. Shareholders may reinvest capital gain distributions in additional
shares of the same fund at the net asset value as of the ex-dividend date.
Dividends may be reinvested in additional shares of the same fund at the net
asset value as of the payable date.
The Trust requires that differences in the recognition or classification of
income between the financial statements and tax earnings and profits which
result in temporary overdistributions for financial statement purposes be
classified as distributions in excess of net investment income or accumulated
net realized gains.
Distributions in excess of tax basis earnings and profits are reported in
the financial statements as a return of capital. Permanent differences between
book and tax accounting for certain items may result in reclassification of
these items.
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service, Inc. (Wright) to act as
investment adviser to the funds pursuant to the respective Investment Advisory
Contracts. Wright furnishes each fund with investment management, investment
advisory, and other services. For its services, Wright is compensated based upon
a percentage of average daily net assets which rate is adjusted as average daily
net assets exceed certain levels. For the six months ended June 30, 2003, the
effective annual rate for WTMM was 0.35% and for WNTB, WUSGI, WCIF, and WTRB was
0.45 %. To enhance the net income of WTMM, WNTB and WUSGI, Wright made a
preliminary reduction of its investment adviser fee by $30,008, $21,839 and
$35,531, respectively. In addition, Wright has been allocated expenses on a
preliminary basis of $62,387, $9,698, $16,801, $14,455 and $26,710 on behalf of
WTMM, WNTB, WUSGI, WTRB, and WCIF, respectively.
The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as
administrator of the Trust. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Trust and is compensated
based upon a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the six months ended June
30, 2003, the effective annual rate was 0.07% for WTMM, 0.09% for WNTB, 0.09%
for WUSGI, 0.07% for WTRB, and 0.11% for WCIF. Certain of the Trustees and
officers of the Trust are directors/trustees and/or officers of the above
organizations. Except as to Trustees of the Trust who are not employees of Eaton
Vance or Wright, Trustees and officers received remuneration for their services
to the Trust out of fees paid to Eaton Vance and Wright.
(4) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
funds, except WTMM, will pay Wright Investors' Service Distributors, Inc.
(Principal Underwriter), a wholly-owned subsidiary of Winthrop, at an annual
rate of 0.25% of the average daily net assets of each fund for activities
primarily intended to result in the sale of each fund's shares. To enhance the
net income of WNTB, WUSGI, WTRB, and WCIF, the Principal Underwriter made a
reduction of its fee by $40,583, $19,742, $49,624, and $39,737, 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 amount of service fee payable under the Service Plan may not exceed
0.25% annually of each fund's average daily net assets. For the six months ended
June 30, 2003, the funds did not accrue or pay any service fees.
(5) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in fund shares were as follows:
Six Months Ended Year Ended
June 30, 2003 December 31, 2002
--------------------------------------------------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------------------------------
Wright U.S. Treasury Money market Fund--
Sold................................................. 24,085,665 $ 24,085,665 36,968,761 $ 36,968,761
Issued to shareholders in payment of
distributions declared............................. 35,043 35,043 156,734 156,734
Redemptions.......................................... (23,071,734) (23,071,734) (38,281,095) (38,281,095)
----------- -------------- ----------- --------------
Net increase/(decrease).......................... 1,048,974 $ 1,048,974 (1,155,600) $ (1,155,600)
============= ================= ============= =================
Wright U.S. Government Near Term Fund--
Sold................................................. 639,351 $ 6,688,478 1,167,139 $ 12,125,339
Issued to shareholders in payment of
distributions declare............................... 31,153 325,881 75,264 780,133
Redemptions.......................................... (922,102) (9,644,073) (1,515,316) (15,725,859)
----------- -------------- ----------- --------------
Net decrease..................................... (251,598) $ (2,629,714) (272,913) $ (2,820,387)
============= ================= ============= =================
Wright U.S. GOVERNMENT INTERMEDIATE Fund--
Sold................................................. 201,138 $ 2,773,435 595,408 $ 8,310,825
Issued to shareholders in payment of
distributions declare............................... 14,451 199,652 41,876 575,858
Redemptions.......................................... (170,258) (2,347,165) (258,594) (3,563,986)
----------- -------------- ----------- --------------
Net increase..................................... 45,331 $ 625,922 378,690 $ 5,322,697
============= ================= ============= =================
Wright Total Return Bond Fund--
Sold................................................. 617,325 $ 8,066,873 649,865 $ 8,208,631
Issued to shareholders in payment of
distributions declared.............................. 53,081 696,488 150,168 1,897,860
Redemptions.......................................... (558,189) (7,294,580) (1,805,464) (22,886,365)
----------- -------------- ----------- --------------
Net increase (decrease).......................... 112,217 $ 1,468,781 (1,005,431) $ (12,779,874)
============= ================= ============= =================
Wright Current Income Fund -- Standard Shares
Sold................................................. 573,783 $ 6,159,739 1,753,958 $ 18,765,516
Issued to shareholders in payment of
distributions declared.............................. 58,101 623,937 139,397 1,492,961
Redemptions.......................................... (1,216,922) (13,068,608) (1,627,469) (17,410,120)
----------- -------------- ----------- --------------
Net increase (decrease).......................... (585,038) $ (6,284,932) 265,886 $ 2,848,357
============= ================= ============= =================
Wright Current Income Fund -- Institutional Shares
Sold................................................. 394,118 $ 4,020,000 - $ -
Issued to shareholders in payment of
distributions declared.............................. 27,597 282,568 91,650 933,035
Redemptions.......................................... (1,948,242) (19,852,589) (409,996) (4,154,677)
----------- -------------- ----------- --------------
Net decrease..................................... (1,526,527) $(15,550,021) (318,346) $ (3,221,642)
============= ================= ============= =================
- --------------------------------------------------------------------------------------------------------------------------------
(6) INVESTMENT TRANSACTIONS
The Trust invests primarily in debt securities. The ability of the issuers
of the debt securities held by the Trust to meet their obligations may be
affected by economic developments in a specific industry or municipality.
Purchases and sales and maturities of investments, other than short-term
obligations, were as follows:
Six Months Ended June 30, 2003
---------------------------------------------
WNTB WUSGI WTRB WCIF
- -------------------------------------------------------------------------------
Purchases--
Non-U.S.
Obligations $ - $ - $ 4,022,630 $ 8,986,689
=========== =========== =========== ===========
U.S. Gov't
Obligations $18,864,529 $12,047,194 $16,930,875 $ -
=========== =========== =========== ===========
Sales --
Non-U.S. Gov't
Obligation $ - $ - $ 3,886,806 $33,189,142
=========== =========== =========== ===========
U.S. Gov't
Obligations $20,650,894 $11,592,316 $15,573,188 $ -
=========== =========== =========== ===========
- -------------------------------------------------------------------------------
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 2003, as computed on a federal income tax basis,
are as follows:
WNTB WUSGI WTRB WCIF
- -------------------------------------------------------------------------------
Aggregate
cost.........$30,688,031 $15,523,974 $39,084,068 $44,999,460
========== =========== =========== ===========
Gross unrealized
appreciation. 627,011 347,837 1,995,865 4,513,907
Gross unrealized
depreciation. (24,174) (14,533) (53,178) (501)
---------- ---------- ---------- ----------
Net unrealized
depreciation. $ 602,837 $ 333,304 $ 1,942,687 $ 4,513,406
=========== =========== =========== ===========
(8) LINE OF CREDIT
The funds participate with other funds managed by Wright in a committed $20
million unsecured line of credit agreement with a bank. The funds may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each fund based on its
borrowings at an amount above the federal funds rate. In addition, a fee
computed at an annual rate of 0.10% on the average daily unused portion of the
$20 million line of credit, is allocated among the participating funds at the
end of each quarter. The funds did not have significant borrowings or allocated
fees during the six months ended June 30, 2003. WNTB has $432,000 outstanding at
June 30, 2003.
(9) CLASS ELIMINATION
The Institutional Share class of Current Income Fund was fully liquidated
on May 20, 2003.
Item 2. CODE OF ETHICS
Not Required in Filing.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not Required in Filing.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not Required in Filing.
Items 5-6. [Reserved]
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not Required in Filing.
Item 8. [Reserved]
Item 9. 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 in 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 10. EXHIBITS
(a) and (b) Exhibit is attached to Filing.
(c) Exhibit is attached to Filing.
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.
THE WRIGHT MANAGED INCOME TRUST (ON BEHALF OF WRIGHT U.S. TREASURY MONEY MARKET
FUND, WRIGHT U.S. GOVERNMENT NEAR TERM FUND,WRIGHT U.S. GOVERNMENT INTERMEDIATE
FUND, WRIGHT TOTAL RETURN BOND FUND AND WRIGHT CURRENT INCOME FUND
By: /s/Peter M. Donovan
----------------------
Peter M. Donovan
President
Date: August 22, 2003
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/James L. O'Connor
----------------------
James L. O'Connor
Treasurer
Date: August 22, 2003
By: /s/Peter M. Donovan
----------------------
Peter M. Donovan
President
Date: August 22, 2003