FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-3489
--------
The Wright Managed Equity Trust
-------------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
December 31
------------------------
Date of Fiscal Year End
June 30, 2007
-------------------------
Date of Reporting Period
- -------------------------------------------------------------------------------
Item 1. REPORTS TO STOCKHOLDERS
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
SEMI-ANNUAL REPORT
JUNE 30, 2007
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 Total Return Bond Fund
o Wright Current Income Fund
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
- -------------------------------------------------------------------------------
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS CONSIST OF THREE EQUITY FUNDS FROM
THE WRIGHT MANAGED EQUITY TRUST AND TWO FIXED INCOME FUNDS FROM THE WRIGHT
MANAGED INCOME TRUST. EACH OF THE FIVE FUNDS HAVE DISTINCT INVESTMENT OBJECTIVES
AND POLICIES. THEY CAN BE USED INDIVIDUALLY OR IN COMBINATION TO ACHIEVE
VIRTUALLY ANY OBJECTIVE. FURTHER, AS THEY ARE ALL "NO-LOAD" FUNDS (NO
COMMISSIONS OR SALES CHARGES), PORTFOLIO ALLOCATION STRATEGIES CAN BE ALTERED AS
DESIRED TO MEET CHANGING MARKET CONDITIONS OR CHANGING REQUIREMENTS WITHOUT
INCURRING ANY SALES CHARGES.
APPROVED WRIGHT INVESTMENT LIST
Securities selected for investment in these funds are chosen mainly from a list
of "investment grade" companies maintained by Wright Investors' Service
("Wright" or the "Adviser"). All 25,000 global companies (covering 50 countries)
in Wright's database are screened as new data becomes available to determine any
eligible additions or deletions to the list. The qualifications for inclusion as
"investment grade" are companies that meet Wright's Quality Rating criteria.
This rating includes fundamental criteria for investment acceptance, financial
strength, profitability & stability and growth. In addition, securities, which
are not included in Wright's "investment grade" list, may also be selected from
companies in the fund's specific benchmark (up to 20% of the market value of the
portfolio) in order to achieve broad diversification. Different quality criteria
may apply for the different funds. For example, the companies in the Major Blue
Chip Fund would require a higher Investment Acceptance rating than the companies
in the Selected Blue Chip Fund.
THREE EQUITY FUNDS
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC) seeks to enhance total investment
return through price appreciation plus income. The Fund's portfolio is
characterized as a blend of growth and value stocks. The market capitalization
of the companies is typically between $1-$10 billion at the time of the Fund's
investment. The Adviser seeks to outperform the Standard & Poor's 400 Index (S&P
400) by selecting stocks using fundamental company analysis and company specific
criteria such as valuation and earnings trends. The portfolio is then
diversified across industries and sectors.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC) seeks to enhance total investment
return through price appreciation plus income by providing a broadly diversified
portfolio of equities of larger well-established companies with market values of
$10 billion or more. The Adviser seeks to outperform the Standard & Poor's 500
Index (S&P 500) by selecting stocks, using fundamental company analysis and
company specific criteria such as valuation and earnings trends. The portfolio
is then diversified across industries and sectors.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) seeks total return
consisting of price appreciation plus income by investing in a broadly
diversified portfolio of equities of well-established, non-U.S. companies. The
Fund may buy common stocks traded on the securities exchange of the country in
which the company is based or it may purchase American Depositary Receipts
(ADR's) traded in the United States. The portfolio is denominated in U.S.
dollars and investors should understand that fluctuations in foreign exchange
rates may impact the value of their investment. The Adviser seeks to outperform
the MSCI Developed World ex U.S. Index by selecting stocks using fundamental
company analysis and company-specific criteria such as valuation and earnings
trends. The portfolio is then diversified across industries, sectors and
countries.
TWO FIXED-INCOME FUNDS
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 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. The Fund's benchmark is the Lehman U.S.
Aggregate Bond Index.
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. The Fund's benchmark is
the Lehman GNMA Backed Bond Index.
TABLE OF CONTENTS
- ------------------------------------------------------------------------------
INVESTMENT OBJECTIVES...............................inside front & back cover
LETTER TO SHAREHOLDERS......................................................2
MANAGEMENT DISCUSSION.......................................................3
FUND EXPENSES...............................................................8
BOARD OF TRUSTEES ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT.....50
IMPORTANT NOTICES REGARDING PRIVACY, DELIVERY OF SHAREHOLDER DOCUMENTS,
PORTFOLIO HOLDINGS AND PROXY VOTING.....................................51
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
Statements 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
Statements 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
Statements of Changes in Net Assets.......25
Financial Highlights......................26
NOTES TO FINANCIAL STATEMENTS...............27
THE WRIGHT MANAGED INCOME TRUST
WRIGHT TOTAL RETURN BOND FUND
Portfolio of Investments..................32
Statement of Assets & Liabilities.........36
Statement of Operations...................36
Statements of Changes in Net Assets.......37
Financial Highlights......................38
wright current income fund
Portfolio of Investments..................39
Statement of Assets & Liabilities.........42
Statement of Operations...................42
Statements of Changes in Net Assets.......43
Financial Highlights......................44
NOTES TO FINANCIAL STATEMENTS...............45
LETTER TO SHAREHOLDERS
- -------------------------------------------------------------------------------
July 2007
Dear Shareholders:
As the nation celebrated its sixth Fourth of July since the current
economic expansion began in December 2001, U.S. equity investors had reason to
celebrate as well. Despite profit taking during June, the second quarter of 2007
produced a total return for the S&P 500 of 6.3%, roughly on a par with the
average returns achieved in last year's third and fourth quarters - and a big
improvement on the skimpy 0.6% return seen in this year's first quarter. Q2 was
noteworthy for the new high hit by the S&P 500, eight months after the Dow Jones
Industrial Average moved into record territory, and for the solid performance
achieved by the Nasdaq Composite, which outperformed the S&P 500 by its best
margin since March 2006.
The condition of the U.S. financial system, despite on and off worries
about the full impact of the subprime mortgage issue, has generally stayed
healthy. In the bond market, where the Lehman aggregate lost 0.5%, the second
quarter's best excess returns were earned in the credit sector, although in June
corporate yield spreads widened as investors edged toward the safety of Treasury
securities. The U.S. dollar gained ground against the Japanese yen during the
second quarter (5%), but it continued its decline against the euro (-1%) and
most major currencies (-2%). This dollar depreciation boosted returns on foreign
stocks to U.S. shareholders by roughly one percentage point, making the
April-June period the seventh quarter in the last eight in which foreign stocks
outperformed domestic.
June marked one full year since the Federal Reserve raised its fed funds
target to the current 5.25%. Meanwhile, European central banks have generally
kept boosting interest rates (including a 25 basis-point hike by the Bank of
England on July 5) so as to keep inflation pressures under control. The Fed is
not unsympathetic to these inflation concerns - indeed, it still sees inflation
as a greater threat than economic slowdown - but it forecasts that inflation
pressures will moderate as 2007 progresses. The Bernanke Fed has a good deal
more credibility as inflation fighter today than it did in its first year of
operation, and we don't see it cutting interest rates until the first half of
2008 - and then only if core inflation pressures stay under wraps.
The U.S. economic expansion probably hit its low point in the mid-cycle
slowdown during the first quarter, when real GDP growth was an anemic 0.7%.
Signs are that Q2 GDP growth will be roughly 3%, as some of the special factors
in the Q1 slowdown have eased: foreign trade has improved on strong demand from
Europe and fast-growing Asian economies; inventories are sufficiently lean that
Q1's negative swing from inventory accumulation to liquidation will not repeat.
Housing remains in a slump, but going forward it isn't likely to subtract more
than the one percentage point from GDP that it has averaged over the past four
quarters. When the Fed began to raise interest rates in 2004, dispelling the
myth that home prices only go higher was no doubt one of its objectives, and in
that they have succeeded.
As the second half of 2007 begins, there are signs that investors are also
coming around to a greater appreciation of the volatility and risks of financial
assets. Higher levels of volatility in the stock and credit markets are not all
bad, since they promote more normal pricing of risks in both stocks and bonds.
From here, we continue to believe that the economic fundamentals are more
positive than negative, supporting the case for stock returns of roughly 10% and
bond returns in the 5%-5.5% range for the coming 12 months. High oil prices,
subprime mortgage problems and the risk of resurgent inflation are potential
flies in the ointment for this generally benign outlook for the markets, and
they obviously bear watching. As always, I invite your suggestions on how we can
better serve your investment and wealth management needs.
Sincerely,
/s/ Peter M. Donovan
----------------------
Peter M. Donovan
President
MANAGEMENT DISCUSSION
- -------------------------------------------------------------------------------
EQUITY FUNDS
AFTER AN UNSETTLED FIRST QUARTER, THE GLOBAL BULL MARKET IN STOCKS RESUMED IN
THE SECOND QUARTER OF 2007. AT DIFFERENT PERIODS IN THE FIRST HALF OF 2007
INVESTORS WERE WORRIED THAT ECONOMIC GROWTH WAS TOO FAST AND WAS ABOUT TO BRING
ABOUT A SPIKE IN INFLATION, OR ALTERNATELY, THAT THE ECONOMY WAS AT RISK OF
SLOWING INTO A RECESSION. CONCERNS ABOUT PROBLEMS IN THE HOUSING SECTOR (WHERE
INDICATORS POINT TO MORE WEAKNESS AHEAD); RISING DELINQUENCIES IN SUBPRIME
MORTGAGES (WHICH THREATEN TO HAVE A WIDER EFFECT THAN WE HAVE SEEN SO FAR); AND
THE POSSIBLE DAMAGE FROM HIGH ENERGY PRICES PERSISTED THROUGHOUT THE PERIOD. BUT
AFTER TAKING A CAUTIOUS STANCE EARLY IN THE YEAR, INVESTORS WERE ABLE TO SHRUG
OFF THESE CONCERNS IN Q2, TAKING THE S&P 500 AND DOW JONES INDUSTRIALS TO NEW
ALL-TIME HIGHS AND THE NASDAQ TO ITS HIGHEST LEVEL IN MORE THAN SIX YEARS.
BETTER-THAN-EXPECTED CORPORATE PROFIT GROWTH AND A SURGE IN MERGERS, LEVERAGED
BUYOUTS (LBOS) AND STOCK BUYBACKS PROVIDED SUPPORT FOR STOCK PRICES IN THE
SECOND QUARTER. STOCKS LOST SOME MOMENTUM TOWARD THE END OF THE QUARTER AS
INTEREST RATES MOVED HIGHER AND THE NEAR-COLLAPSE OF TWO BEAR STEARNS HEDGE
FUNDS BECAUSE OF PROBLEMS WITH THEIR SUBPRIME HOLDINGS SEEMED TO REKINDLE SOME
APPRECIATION OF RISK.
EVEN WITH SOME WAFFLING IN JUNE, U.S. STOCKS ACHIEVED IMPRESSIVE RETURNS IN THE
SECOND QUARTER OF 2007. THE DOW JONES INDUSTRIALS PROVIDED A TOTAL RETURN OF
9.1% FOR THE QUARTER, WHICH COMBINED WITH A SMALL FIRST-QUARTER LOSS TO BRING
THE YEAR-TO-DATE RETURN TO 8.8%. NASDAQ'S SECOND-QUARTER RETURN OF 7.7% BROUGHT
ITS YEAR-TO-DATE GAIN TO 8.2%. THE S&P 500 RETURNED 6.3% FOR THE QUARTER AND
7.0% FOR THE FIRST HALF OF THE YEAR. THERE WAS MODEST EVIDENCE OF INCREASED RISK
AVERSION IN THE Q2 GAINS OF THE S&P MIDCAP 400 (5.8%) AND SMALLCAP 600 (5.2%).
STILL, WITH RELATIVELY STRONG FIRST-QUARTER RESULTS, BOTH INDEXES ARE AHEAD OF
THE S&P 500 YEAR TO DATE (MIDCAPS UP 12.0%, SMALLCAPS UP 8.6%). ECONOMIC GROWTH
LOOKING HEALTHY OUTSIDE OF THE U.S. - IN DEVELOPED MARKETS AS WELL AS EMERGING
ECONOMIES SUCH AS CHINA AND INDIA - HELPING FOREIGN STOCK MARKETS TO A GOOD
SECOND QUARTER. THE MSCI WORLD EX U.S. INDEX RETURNED 5.9% IN LOCAL CURRENCIES
AND 7.0% IN DOLLARS IN Q2, WITH HEALTHY GAINS IN EUROPE AND THE PACIFIC EX JAPAN
REGION OFFSETTING A DECLINE IN JAPAN. YEAR TO DATE, THE INDEX HAS RETURNED 11.3%
IN DOLLARS.
WE EXPECT EQUITIES TO OUTPERFORM BONDS OVER THE COMING YEAR. AFTER THE
IMPRESSIVE RETURNS OF THE SECOND QUARTER AND THE INCREASED VOLATILITY EVIDENT IN
JUNE, ONE SHOULDN'T BE SURPRISED TO SEE SOME WEAKNESS IN STOCKS OVER THE SUMMER.
P/E MULTIPLES MOVED UP A BIT IN Q2, BUT INCREASED RISK AWARENESS MAY MAKE
INVESTORS HESITANT ABOUT GIVING AN ADDITIONAL BOOST TO MULTIPLES IN THE NEAR
TERM. NEVERTHELESS, A YEAR FROM NOW WE EXPECT THE MARKET'S MULTIPLE TO BE
SLIGHTLY HIGHER THAN THE MID-YEAR LEVEL, REFLECTING A CONTINUATION OF RELATIVELY
LOW INTEREST RATES AND INVESTORS' GROWING CONFIDENCE IN THE HEALTH OF THE
ECONOMY. EVEN IF WALL STREET'S EXPECTATION OF A 10% OR SO RISE IN S&P 500
PROFITS OVER THE COMING 12 MONTHS PROVES A LITTLE OPTIMISTIC, WE SEE SUFFICIENT
EARNINGS GROWTH TO RESULT IN A RETURN IN THE 10% RANGE FOR EQUITIES OVER THE
COMING 12 MONTHS. WITH EARNINGS GROWTH IN A NUMBER OF COUNTRIES LIKELY TO EXCEED
THAT IN THE U.S. OVER THE COMING YEAR, INCLUSION OF FOREIGN STOCKS IN PORTFOLIOS
IS LIKELY TO ENHANCE RETURNS.
2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
Total Return 6 Mos. Year Year Year Year Year Year Year Year Year Year
- --------------------------------------------------------------------------------------------------------------------------------
Wright Selected Blue Chip
Equities Fund (WSBC) 15.6% 3.8% 11.1% 15.7% 30.1% -17.0% -10.2% 10.8% 5.8% 0.1% 32.7%
Wright Major Blue Chip
Equities Fund (WMBC) 6.8% 11.6% 6.2% 12.4% 23.2% -24.5% -16.9% -12.5% 24.0% 20.4% 33.9%
Wright International Blue Chip
Equities Fund (WIBC) 9.2% 28.5% 21.1% 17.7% 32.0% -14.5% -24.2% -17.6% 34.3% 6.1% 1.5%
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
The S&P MidCap 400 outperformed the S&P 500 in the first half of 2007, the
result of a relatively strong first-quarter performance and a slightly smaller
return than the S&P 500 in Q2. The Wright Selected Blue Chip Equities Fund
(WSBC), which is a mid-cap blend fund, was ahead of its benchmarks in each of
the first two quarters of 2007. In the April-June quarter, the WSBC Fund
returned 8.2%, well ahead of the 5.8% for the S&P MidCap 400 and the average
6.4% return for 381 mid-cap blend funds in the Morningstar database. For the
first half, the WSBC Fund returned 15.6%, compared to returns of 12.0% for the
S&P MidCaps and 10.7% for the Morningstar average. Although the financial group
was the second-weakest sector in the mid-cap universe in the first half of 2007,
WSBC's performance relative to the mid-cap index got a boost in both the first
and second quarters because of superior stock selection in this sector. In the
second quarter, WSBC's holdings outperformed the S&P MidCap in nine out of 10
industry sectors (eight out of 10 for the entire first half). Among the
individual securities that contributed to WSBC's strong results in the first
half were tech stock Commscope (+91%), Precision Castparts (+55%) and Jacobs
Engineering (+41%) in industrials and A.G. Edwards (+34%) and Eaton Vance (+35%)
in financials. In the first half, the S&P MidCap 400's P/E in terms of forward
earnings expanded to about two points higher than the S&P 500's, compared to
about one point at the end of 2006. Despite the higher valuation, mid-cap stocks
still look attractive because of their better forecast earnings growth. WSBC is
well positioned in the mid-cap area with a tilt toward the more substantial
companies in the S&P MidCap 400. WSBC companies have about the same projected
earnings growth as those in the MidCap 400 but a lower forward P/E. Wright
Investors Service continues to advise diversity in investment portfolios and
sees mid-cap stocks as likely to make a positive contribution to total portfolio
returns going forward.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
The Wright Major Blue Chip Equities Fund (WMBC) is managed as a blend of the
large-cap growth and value stocks in the S&P 500 Composite, selected with a bias
toward the higher-quality issues in the index. After a 0.6% return in the first
quarter of 2007, the S&P 500 picked up some momentum in Q2 with a return of
6.3%, for a six-month gain of 7.0%. WMBC, which was slightly ahead of the S&P
500 in Q1 (up 0.7%), lagged a bit with a 6.1% return in Q2, putting its return
at 6.8% in the first half of the year, compared to the S&P 500's 7.0%. WMBC was
also slightly behind the 6.2% average second-quarter return and 7.3% average
first-half return reported for 541 large-cap blend funds in the Morningstar
database. During the first quarter of 2007, the biggest stocks in the S&P 500
(i.e., the top quintile by market cap) underperformed the index as a whole. This
was related to weakness in the financial sector, which includes some of the
largest stocks in the index, on growing concerns about problems in the subprime
mortgage sector. WMBC was able to overcome the disadvantage of its larger market
cap and overweight position in financials compared to the S&P 500 by strong
stock selection. The second quarter of 2007 saw some reversal of trend, with
bigger stocks doing better, perhaps reflecting more risk aversion on the part of
investors. This worked to the Fund's advantage, since the median market cap of
its holdings is larger than for the S&P 500. In the second quarter, however, the
Fund again was hurt by its slightly overweight position in financials, which
continued to be weak as interest rates rose and investors worried about risks in
subprime mortgages. Stock selections in the industrial group helped, but
weakness in health-care holdings hurt. These second-quarter factors were the
primary drivers of first-half performance; i.e., overweighting in financials;
weakness in some health-care holdings (e.g., Forest Labs -12%; Applied
Biosystems -17%); but a strong performance in industrial holdings (e.g., Cummins
+72%; Paccar +35%). WIS expects that the second half of 2007 could see an
increase in stock market volatility. With its bias toward the more substantial,
higher-quality stocks in the S&P 500, WMBC is well positioned for a volatile,
more risk-averse environment. At the beginning of 2007's second half, WMBC's
holdings were valued at a lower forward P/E than the S&P 500 (13.4 vs 15.0),
while being in line with the S&P 500 in forecast earnings growth.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
The MSCI World ex U.S. stock index outperformed the S&P 500 in dollar terms in
both the first and second quarters of 2007. The Wright International Blue Chip
Equities Fund (WIBC) returned 6.0% in the second quarter of 2007, compared to
7.0% for the MSCI World ex U.S. index. The average return for 541 foreign large
blend funds in the Morningstar database was also 7.0% in Q2. WIBC was also
slightly behind its benchmarks in the first quarter of 2007, with the result
that for the first half of 2007, WIBC returned 9.2%, compared to 11.3% for the
MSCI benchmark and 10.7% for the Morningstar average. In the first half of 2007,
WIBC benefited from the strong performance of materials stocks as commodity
prices continued to rise, as well as from gains in some specific issues as a
result of takeover news and speculation. Offsetting these pluses in the first
quarter was a lagging performance in Japan, where WIBC held some Japanese
exporters that were hit by a sell-off in anticipation of slower global economic
growth (which has not materialized). In the second quarter of 2007, the Fund's
relative performance was hurt by the poor showing of home building and real
estate-related holdings in the U.K. (i.e., Persimmon, Bellway, Land Securities),
which suffered from rising interest rates. Economic and earnings growth
prospects outside of the U.S. look relatively promising for the coming 12
months, and acquisition activity may also continue to provide support for
equities. In addition to improving fundamentals, foreign stocks offer attractive
valuations, with an aggregate P/E multiple lower than the S&P 500's. We continue
to see the inclusion of international stocks as likely to enhance returns in
diversified investment portfolios. In the second quarter, WIBC added to its
positions in the industrial, materials and technology sectors, which should
benefit from strong growth. The Fund's weighting was reduced in health care and
telecom, more defensive sectors. The Fund moved from an overweight to an
underweight position in the U.K and also reduced its holdings in Canada and Hong
Kong. It moved to overweight positions in the Eurozone and Japan.
FIXED-INCOME FUNDS
THE U.S. BOND MARKET WAS VOLATILE IN THE FIRST HALF OF 2007. BONDS CHANGED
DIRECTION SEVERAL TIMES IN BOTH THE FIRST AND SECOND QUARTERS OF THE YEAR; AFTER
YIELDS DECLINED IN Q1, THEY MOVED HIGHER IN Q2. SHIFTING VIEWS ON WHETHER GROWTH
WAS TOO FAST OR TOO SLOW AND ON THE FUTURE COURSE OF INFLATION CONTRIBUTED TO
INVESTORS' UNEASE. BUT IF THE BOND MARKET WAS UNSURE, THE FED, WHILE KEEPING THE
FED FUNDS TARGET UNCHANGED AT 5.25% DURING THE QUARTER, STUCK TO ITS VIEW THAT
THE POSSIBILITY OF STUBBORN INFLATION WAS THE PRIMARY RISK TO THE ECONOMY. THERE
HAS BEEN PROGRESS ON INFLATION: THE CORE PERSONAL CONSUMPTION DEFLATOR,
REPORTEDLY THE FED'S FAVORITE INFLATION INDICATOR, WAS UP 1.9% YEAR OVER YEAR IN
MAY, THE FIRST TIME IT HAS COME IN UNDER THE FED'S TARGET CEILING OF 2.0% SINCE
FEBRUARY 2006. BUT RISING FOOD AND ENERGY PRICES AND HIGH RESOURCE UTILIZATION
HAVE THE FED STAYING CAUTIOUS ON THE INFLATION OUTLOOK. THROUGH THE FIRST
QUARTER AND EARLY IN THE SECOND, INVESTORS EXPECTED THAT THE FED WOULD CUT
INTEREST RATES AT LEAST ONCE THIS YEAR, BUT BY MIDYEAR, FED FUNDS FUTURES WERE
INDICATING THAT THE MOST LIKELY COURSE THIS YEAR WAS NO CHANGE BY THE FED.
AFTER DECLINING IN THE FIRST QUARTER, YIELDS ON TREASURY ISSUES WITH MATURITIES
LONGER THAN ONE YEAR ROSE IN THE SECOND QUARTER. THE YIELD ON THE BENCHMARK
10-YEAR TREASURY GOT AS HIGH AS 5.3% IN JUNE BEFORE CLOSING THE QUARTER AT 5.0%,
UP FROM 4.7% AT THE START OF THE YEAR. THE STEEPENING OF THE YIELD CURVE THAT
STARTED IN THE FIRST QUARTER CONTINUED IN Q2, ESPECIALLY IN JUNE AS VOLATILITY
IN STOCKS AND CONCERNS ABOUT SUBPRIME MORTGAGES HAD SOME INVESTORS SEEKING THE
SAFETY THAT SHORT-MATURITY TREASURYS PROVIDE. AT JUNE 30, THE SPREAD BETWEEN THE
YIELDS ON THE 10-YEAR TREASURY AND THE TWO-YEAR TREASURY WAS A POSITIVE 17 BASIS
POINTS, STILL RELATIVELY FLAT BY HISTORIC STANDARDS BUT UP FROM A NEGATIVE 11
BASIS POINTS AT THE START OF THE YEAR. AFTER GAINING GROUND IN THE FIRST
QUARTER, THE LEHMAN AGGREGATE U.S. BOND INDEX LOST 0.5% IN Q2. FOR THE FIRST
HALF OF THE YEAR, THE LEHMAN AGGREGATE RETURNED 1.0%, LAGGING THE RETURN FROM
STOCKS. AN INCREASING PERCEPTION OF RISK CAUSED SPREADS ON CORPORATE AND
MORTGAGE-BACKED ISSUES TO WIDEN IN JUNE; FOR THE FIRST HALF, CORPORATE ISSUES
RETURNED SLIGHTLY MORE THAN TREASURIES, WHILE MORTGAGES LAGGED.
THE BOND MARKET, LIKE THE STOCK MARKET, MAY BE IN FOR SOME VOLATILITY IN COMING
MONTHS. INVESTORS APPEAR TO HAVE A HEIGHTENED APPRECIATION OF RISK AFTER THE
SECOND QUARTER'S PROBLEMS IN SOME HEDGE FUNDS THAT HELD SUBPRIME MORTGAGES.
BASED ON THE FUNDAMENTALS, HOWEVER, WE DON'T EXPECT ANY DRAMATIC CHANGE IN BOND
YIELDS OVER THE COMING YEAR, ALTHOUGH THE BIAS COULD BE UPWARD IN THE NEAR TERM.
INFLATION SHOULD GRADUALLY DRIFT LOWER, BUT IT WON'T BE A RAPID IMPROVEMENT.
DESPITE A "GROWTH SCARE" THAT EMERGED FOR A WHILE IN THE SECOND QUARTER OF 2007,
WE SEE ECONOMIC GROWTH CONTINUING AT A BELOW-TREND RATE FOR AT LEAST THE SECOND
HALF OF THIS YEAR. THIS SLOW-GROWTH, MODERATE INFLATION ENVIRONMENT, ALONG WITH
THE STAND-PAT POLICY WE EXPECT FROM THE FED THROUGH THIS YEAR, SHOULD PROVIDE
BOTH A CEILING AND A FLOOR FOR INTEREST RATES. CORPORATE AND MORTGAGE SPREADS
COULD WIDEN A BIT MORE. OVERALL, WE SEE THE LEHMAN AGGREGATE RETURNING AS MUCH
AS 6% OVER THE COMING YEAR, WITH COUPON RETURNS AUGMENTED BY MODEST PRICE
APPRECIATION.
2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
Total Return 6 Mos. Year Year Year Year Year Year Year Year Year Year
- --------------------------------------------------------------------------------------------------------------------------------
Wright Total Return Bond Fund
(WTRB) 0.5% 3.3% 1.5% 3.5% 3.3% 9.0% 5.0% 10.6% -3.9% 9.6% 9.3%
Wright Current Income Fund
(WCIF) 1.0% 3.9% 1.8% 3.3% 1.7% 7.7% 7.2% 10.3% 0.5% 6.5% 8.6%
WRIGHT TOTAL RETURN BOND FUND
After moving slightly lower in the first quarter of 2007, bond yields rose in
the second quarter and on June 30 were higher than they were at year end. The
Lehman Aggregate U.S. Bond Index returned 1.0% for the half year, giving back
about one-third of its first-quarter gain in Q2. The Wright Total Return Bond
Fund (WTRB), a diversified bond fund, lost 0.8% in the second quarter, slightly
behind the Lehman U.S. Aggregate Bond Composite's 0.5% loss but in line with the
0.8% loss for an average of 951 comparable bond funds in the Morningstar
database in the quarter. For the first half of 2007, WTRB returned 0.5% compared
to 1.0% for the Lehman Aggregate and 0.6% for the Morningstar average. WTRB had
a yield of 4.5% calculated according to SEC guidelines at the end of June 2007.
Dividends paid by this Fund may be more or less than implied by this yield.
WTRB's duration was neutral with the Lehman benchmark's as 2007 began. After a
bond market rally in February and early March, the Fund's duration was shortened
compared to the benchmark. This positioning benefited the Fund during the rest
of the first quarter and early in the second quarter as the bond market gave
back some of its earlier gains as expected. In May, anticipating that bond
yields were approaching a high, the Fund's duration was moved back to neutral
compared to the Lehman Aggregate. The Fund's duration position had a slightly
positive impact on performance in the first and second quarters of 2007. In the
first quarter, the Fund benefited from its weightings relative to the benchmark
in the different sectors of the fixed income market. In the second quarter,
however, the Fund's overweight position in securitized issues (mortgage-backed,
asset-backed, and commercial mortgage-backed issues and hybrid ARMs) detracted
from Fund performance. For the first half of the year, the combination of sector
weightings and security selection had a slightly negative affect on performance.
During the second quarter, the Fund reduced its weighting in corporate bonds to
16% of holdings at quarter end (compared to 19% for the Lehman Aggregate)
reflecting our expectation that increased credit risk would cause spreads to
widen. The Fund also increased its position in mortgage-backed securities to
nearly 52% at June 30 compared to 37% for the Aggregate. Though this was a
negative for second-quarter performance, we continue to believe that mortgages
offer relatively good value in the fixed-income universe. We also see good value
in our holdings in commercial mortgages (7.0%) and asset-backed securities
(2.3%). The Fund held no agency issues and 22% of assets were in Treasurys at
quarter end. In light of the increased volatility of the bond market in June,
the Fund's neutral duration compared to the Lehman Aggregate was maintained
through midyear.
WRIGHT CURRENT INCOME FUND
In the first half of 2007, the mortgage-backed sector of the bond market
performed in line with the Lehman U.S. Aggregate Bond Index. The Wright Current
Income Fund (WCIF) is managed to be invested in GNMA issues (mortgage-backed
securities, known as Ginnie Maes) and other mortgage-backed securities with
explicit backing from the Federal government. WCIF (which does not hold any
subprime mortgages) is actively managed to maximize income and minimize
principal fluctuation. In the second quarter of 2007, WCIF lost 0.4%, a smaller
loss than those of the Lehman GNMA Bond Index (-0.5%) and the average of 109
government mortgage funds in the Morningstar database (-0.6%). This
second-quarter loss partially offset WCIF's positive return in Q1. For the first
half of 2007, WCIF's return of 1.0% was a little better than the 0.8% for the
Morningstar average and the Lehman benchmark's 0.9%. At June 30, 2007, WCIF had
a yield of 4.8% as calculated by SEC guidelines. Dividends paid by this Fund may
be more or less than implied by this yield. At midyear 2007, WCIF's maturity and
duration were slightly shorter than the Lehman benchmark, which is where the
Fund has been positioned for much of the first half of the year. WCIF was
underweight in issues with middle-range coupons and overweight in issues with
higher and lower coupons. This "barbelled" weighting was a result of the Fund's
positioning in sectors of the market that offered relatively good value.
THE VIEWS EXPRESSED THROUGHOUT THIS REPORT ARE THOSE OF THE PORTFOLIO
MANAGERS AND ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT
AS STATED ON THE COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
UPON MARKET OR OTHER CONDITIONS, AND THE INVESTMENT ADVISER DISCLAIMS ANY
RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS
INVESTMENT ADVICE AND, BECAUSE INVESTMENT DECISIONS FOR A FUND ARE BASED ON
MANY FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY OF THE WRIGHT MANAGED INVESTMENT FUNDS.
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
12/31/97 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%
12/31/03 10,453.92 4.25%
12/31/04 10,783.01 4.22%
12/31/05 10,717.50 4.39%
12/31/06 12,463.15 4.71%
06/30/07 13,408.62 5.03%
FUND EXPENSES
- -------------------------------------------------------------------------------
EXAMPLE:
As a shareholder of a fund, you incur two types of costs: (1) transaction costs,
including sales charges (loads) on purchases and redemption fees (if
applicable); and (2) ongoing costs including management fees; distribution or
service fees; and other fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in a fund and to compare
these costs with the ongoing costs of investing in other mutual funds. The
example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period (January 1, 2007-June 30, 2007).
ACTUAL EXPENSES:
The first line of the tables shown on the following page provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the
result by the number in the first line under the heading entitled "Expenses Paid
During Period" to estimate the expenses you paid on your account during this
period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES:
The second line of the tables provides information about hypothetical account
values and hypothetical expenses based on the actual Fund expense ratio and an
assumed rate of return of 5% per year (before expenses), which is not the actual
return of the Fund. The hypothetical account values and expenses may not be used
to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in your Fund and other funds. To do so, compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of the
other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) or redemption fees (if payable). Therefore, the second line of
the table is useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
FUND EXPENSES - continued
- ---------------------------------
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
Expenses Paid
Beginning Ending During Period*
Account Value Account Value (1/1/07-
(1/1/07) (6/30/07) 6/30/07)
- -------------------------------------------------------------------------------
Actual Fund Shares $1,000.00 $1,156.00 $6.74
- -------------------------------------------------------------------------------
Hypothetical (5% return per year before expenses)
Fund Shares $1,000.00 $1,018.50 $6.31
*Expenses are equal to the Fund's annualized expense ratio of 1.26%
multiplied by the average account value over the period, multiplied by 181/365
(to reflect the one-half year period). The example assumes that the $1,000 was
invested at the net asset value per share determined at the close of business on
December 31, 2006.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
Expenses Paid
Beginning Ending During Period*
Account Value Account Value (1/1/07-
(1/1/07) (6/30/07) 6/30/07)
- -------------------------------------------------------------------------------
Actual Fund Shares $1,000.00 $1,068.40 $6.41
- -------------------------------------------------------------------------------
Hypothetical (5% return per year before expenses)
Fund Shares $1,000.00 $1,018.60 $6.26
*Expenses are equal to the Fund's annualized expense ratio of 1.25%
multiplied by the average account value over the period, multiplied by 181/365
(to reflect the one-half year period). The example assumes that the $1,000 was
invested at the net asset value per share determined at the close of business on
December 31, 2006.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
Expenses Paid
Beginning Ending During Period*
Account Value Account Value (1/1/07-
(1/1/07) (6/30/07) 6/30/07)
- -------------------------------------------------------------------------------
Actual Fund Shares $1,000.00 $1,091.60 $7.47
- -------------------------------------------------------------------------------
Hypothetical (5% return per year before expenses)
Fund Shares $1,000.00 $1,017.70 $7.20
*Expenses are equal to the Fund's annualized expense ratio of 1.44%
multiplied by the average account value over the period, multiplied by 181/365
(to reflect the one-half year period). The example assumes that the $1,000 was
invested at the net asset value per share determined at the close of business on
December 31, 2006.
WRIGHT TOTAL RETURN BOND FUND
Expenses Paid
Beginning Ending During Period*
Account Value Account Value (1/1/07-
(1/1/07) (6/30/07) 6/30/07)
- -------------------------------------------------------------------------------
Actual Fund Shares $1,000.00 $1,005.10 $4.77
- -------------------------------------------------------------------------------
Hypothetical (5% return per year before expenses)
Fund Shares $1,000.00 $1,020.00 $4.81
*Expenses are equal to the Fund's annualized expense ratio of 0.96% multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period). The example assumes that the $1,000 was
invested at the net asset value per share determined at the close of business
on December 31, 2006.
WRIGHT CURRENT INCOME FUND
Expenses Paid
Beginning Ending During Period*
Account Value Account Value (1/1/07-
(1/1/07) (6/30/07) 6/30/07)
- -------------------------------------------------------------------------------
Actual Fund Shares $1,000.00 $1,009.70 $4.78
- -------------------------------------------------------------------------------
Hypothetical (5% return per year before expenses)
Fund Shares $1,000.00 $1,020.00 $4.81
*Expenses are equal to the Fund's annualized expense ratio of 0.96% multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period). The example assumes that the $1,000 was
invested at the net asset value per share determined at the close of business
on December 31, 2006.
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - JUNE 30, 2007 (UNAUDITED)
Shares Value
EQUITY INTERESTS --101.7%
AUTOMOBILES & COMPONENTS -- 3.3%....
ArvinMeritor, Inc................... 19,820 $ 440,004
Borg Warner, Inc.................... 5,555 477,952
------------
$ 917,956
------------
BANKS -- 0.9%
Associated Banc Corp................ 2,430 $ 79,461
Wilmington Trust Corp............... 3,770 156,493
------------
$ 235,954
------------
CAPITAL GOODS -- 7.3%
AGCO Corp.* ........................ 7,910 $ 343,373
Graco, Inc.......................... 1,942 78,224
Joy Global, Inc..................... 3,420 199,489
Precision Castparts Corp............ 4,875 591,630
SPX Corp............................ 5,360 470,662
Thomas & Betts Corp.* .............. 5,555 322,190
------------
$ 2,005,568
------------
COMMERCIAL SERVICES & SUPPLIES -- 8.6%
Ceridian Corp.*..................... 3,440 $ 120,400
Charles River Laboratories
International...................... 4,165 214,997
CSG Systems International, Inc.* ... 4,500 119,295
Harsco Corp......................... 2,025 105,300
Jacobs Engineering Group, Inc.* .... 7,000 402,570
Manpower, Inc....................... 6,995 645,219
MPS Group, Inc.* ................... 10,150 135,705
Republic Services, Inc. - Class A... 6,832 209,332
SEI Investments Co.................. 8,730 253,519
Sotheby's, Inc...................... 3,290 151,406
------------
$ 2,357,743
------------
COMMUNICATIONS EQUIPMENT -- 2.8%
CommScope, Inc.* ................... 4,760 $ 277,746
Harris Corp......................... 4,100 223,655
Polycom, Inc.* ..................... 8,175 274,680
------------
$ 776,081
------------
COMPUTERS & PERIPHERALS -- 1.1%
Western Digital Corp.* ............. 15,880 $ 307,278
------------
CONSUMER DURABLES & APPAREL -- 1.1%
Mohawk Industries, Inc.* ........... 3,145 $ 316,985
------------
DIVERSIFIED FINANCIALS -- 6.0%
Eaton Vance Corp.................... 12,505 $ 552,471
Edwards, A.G., Inc.................. 6,750 570,712
Investors Financial Services Corp... 1,505 92,813
Raymond James Financial, Inc........ 14,487 447,648
------------
$ 1,663,644
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS -- 6.7%
Ametek, Inc......................... 2,710 $ 107,533
Amphenol Corp....................... 4,365 155,612
Arrow Electronics, Inc.* ........... 7,940 305,134
Avnet, Inc.* ....................... 8,965 355,373
Diebold, Inc........................ 2,670 139,374
Ingram Micro, Inc.* ................ 3,795 82,389
Lincoln Electric Holdings, Inc...... 3,965 294,362
ValueClick, Inc.* .................. 8,870 261,310
Vishay Intertechnology, Inc.* ...... 9,085 143,725
------------
$ 1,844,812
------------
ENERGY -- 9.1%
Cameron International Corp.* ....... 5,035 $ 359,851
Denbury Resources, Inc.* ........... 4,745 177,937
FMC Technologies, Inc. * ........... 3,575 283,211
Frontier Oil Corp................... 6,740 295,010
Helmerich & Payne, Inc.............. 4,165 147,524
Newfield Exploration Company* ...... 9,135 416,099
Noble Energy, Inc................... 6,155 384,010
Overseas Shipholding Group, Inc..... 1,785 145,299
Patterson-UTI Energy, Inc........... 7,145 187,270
Tidewater, Inc...................... 1,630 115,534
------------
$ 2,511,745
------------
FOOD, BEVERAGE & TOBACCO -- 2.1%
Hansen Natural Corp.* .............. 6,250 $ 268,625
PepsiAmericas, Inc.................. 3,830 94,065
Smucker Co. (J.M.).................. 3,465 220,582
------------
$ 583,272
------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.8%
Apria Healthcare Group, Inc.* ...... 6,355 $ 182,833
Covance, Inc.* ..................... 2,580 176,885
DENTSPLY International, Inc......... 3,780 144,623
Health Net, Inc.* .................. 2,245 118,536
HEALTH CARE EQUIPMENT & SERVICES -- continued
Hillenbrand Industries, Inc......... 1,890 $ 122,850
Lincare Holdings, Inc.* ............ 2,505 99,824
Universal Health Services, Inc...... 1,985 122,078
WellCare Health Plans Inc.* ........ 770 69,693
------------
$ 1,037,322
------------
HOTELS, RESTAURANTS & LEISURE -- 1.9%
Bob Evans Farms, Inc................ 6,850 $ 252,423
CBRL Group, Inc..................... 3,580 152,078
Ruby Tuesday, Inc................... 5,030 132,440
------------
$ 536,941
------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.9%
Energizer Holdings, Inc.* .......... 4,240 $ 422,304
Tupperware Corp..................... 3,735 107,344
------------
$ 529,648
------------
INSURANCE -- 7.3%
American Financial Group, Inc....... 3,190 $ 108,939
Everest Re Group, Ltd............... 1,725 187,404
First American Corp................. 8,340 412,830
HCC Insurance Holdings, Inc......... 4,960 165,714
Ohio Casualty Corp.................. 4,185 181,252
Old Republic International Corp..... 5,523 117,419
Protective Life Corp................ 4,165 199,129
Radian Group, Inc................... 650 35,100
StanCorp Financial Group, Inc....... 3,520 184,730
W.R. Berkley Corp................... 13,297 432,684
------------
$ 2,025,201
------------
MATERIALS -- 9.3%
Airgas, Inc......................... 3,375 $ 161,663
Albemarle Corp...................... 11,120 428,454
Commercial Metals Co................ 3,440 116,169
Crane Co............................ 5,550 252,248
FMC Corp............................ 765 68,383
Grant Prideco, Inc.* ............... 4,365 234,968
Lubrizol Corp....................... 1,845 119,095
Lyondell Chemical Co................ 7,620 282,854
Martin Marietta Materials, Inc...... 1,225 198,475
RPM International, Inc.............. 7,435 171,823
Scotts Company - Class A............ 3,580 153,725
Sonoco Products Co.................. 6,435 275,482
Steel Dynamics, Inc................. 2,175 91,154
------------
$ 2,554,493
------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 0.8%
NBTY Inc.* ......................... 2,605 $ 112,536
Perrigo Co.......................... 4,860 95,159
------------
$ 207,695
------------
REAL ESTATE -- 1.3%
Cousins Properties, Inc. REIT....... 5,075 $ 147,226
Highwoods Properties, Inc. REIT..... 1,940 72,750
NVR Inc. REIT* ..................... 210 142,748
------------
$ 362,724
------------
RETAILING -- 7.4%
Aeropostale, Inc.* ................. 875 $ 36,470
American Eagle Outfitters........... 12,702 325,933
AnnTaylor Stores Corp.* ............ 5,445 192,862
CDW Corp.* ......................... 3,225 274,028
Dick's Sporting Goods, Inc.* ....... 1,820 105,869
Dollar Tree Stores, Inc. * ......... 6,950 302,673
GameStop Corp. - Class A* .......... 2,580 100,878
Payless ShoeSource, Inc.* .......... 7,290 230,000
Phillips-Van Heusen Corp............ 5,525 334,649
Rent-A-Center, Inc.* ............... 4,860 127,478
------------
$ 2,030,840
------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS -- 2.6%
International Rectifier Corp.* ..... 2,860 $ 106,564
Intersil Corp. - Class A............ 4,730 148,806
Lam Research Corp.* ................ 5,360 275,504
Microchip Technology, Inc........... 2,835 105,008
RF Micro Devices, Inc.* ............ 10,885 67,922
------------
$ 703,804
------------
SOFTWARE & SERVICES -- 2.4%
Activision, Inc. * ................. 8,060 $ 150,480
Alliance Data Systems Corp.* ....... 4,315 333,463
Transaction Systems Architects, Inc.* 5,430 182,774
------------
$ 666,717
------------
TELECOMMUNICATION SERVICES -- 1.0%
Cincinnati Bell, Inc.* ............. 23,620 $ 136,524
NeuStar Inc.- Class A* ............. 4,770 138,187
------------
$ 274,711
------------
TRANSPORTATION -- 4.2%
AirTran Holdings Inc.* ............. 15,085 $ 164,728
Alaska Air Group, Inc.* ............ 9,940 276,928
Hunt, J.B. Transport Services, Inc.. 5,410 158,621
JetBlue Airways Corp.* ............. 26,860 315,605
Trinity Industries, Inc............. 2,745 119,517
YRC Worldwide, Inc.* ............... 3,295 121,256
------------
$ 1,156,655
------------
UTILITIES -- 8.8%
AGL Resources, Inc.................. 4,960 $ 200,781
IDACORP, Inc........................ 8,140 260,806
MDU Resources Group, Inc............ 22,033 617,805
OGE Energy Corp..................... 15,880 582,002
Oneok, Inc.......................... 15,055 758,923
------------
$ 2,420,317
------------
TOTAL EQUITY INTERESTS-- 101.7%
(identified cost, $21,501,516) $ 28,028,106
OTHER ASSETS, LESS LIABILITIES -- 1.7% (477,697)
------------
NET ASSETS-- 100% $27,550,409
============
REIT - Real Estate Investment Trust
* Non-income producing security.
See notes to financial statements
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC)
- ------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2007 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments, at value
(identified cost $21,501,516) (Note 1A). $ 28,028,106
Cash.................................... 231
Receivable for fund shares sold......... 5,359
Dividends receivable.................... 18,891
Other assets............................ 21,756
------------
Total assets............................ $ 28,074,343
------------
LIABILITIES:
Demand note payable..................... $ 491,000
Payable to affiliate for Trustees' fees. 55
Investment adviser fee payable.......... 1,069
Accrued expenses and other liabilities.. 31,810
------------
Total liabilities....................... $ 523,934
------------
NET ASSETS................................ $ 27,550,409
============
NET ASSETS CONSIST OF:
Paid-in capital......................... $ 16,813,449
Accumulated undistributed net realized gain on
investments (computed on the basis of
identified cost)....................... 4,224,544
Unrealized appreciation on investments
(computed on the basis of identified cost) 6,526,590
Distributions in excess of net investment
income................................. (14,174)
------------
Net assets applicable to outstanding shares 27,550,409
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 2,132,189
==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $ 12.92
==============
See notes to financial statements
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2007 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C)
Dividend income......................... $ 193,999
------------
Expenses -
Investment adviser fee (Note 2)......... $ 85,951
Administrator fee (Note 2).............. 17,190
Compensation of Trustees who are not employees
of the investment adviser or administrator 6,516
Custodian fee (Note 1D)................. 44,330
Distribution expenses (Note 3).......... 35,813
Transfer and dividend disbursing agent fees 15,700
Printing................................ 2,896
Interest expense........................ 10,709
Shareholder communications.............. 1,545
Audit services.......................... 7,916
Legal services.......................... 5,324
Registration costs...................... 9,542
Miscellaneous .......................... 2,170
------------
Total expenses.......................... $ 245,602
------------
Deduct -
Reduction of custodian fee (Note 1D).... $ (740)
Reduction of investment adviser fee (Note 2) (30,362)
Reduction of distribution expenses
by principal underwriter (Note 3)...... (35,813)
------------
Total deductions........................ $ (66,915)
------------
Net expenses............................ $ 178,687
------------
Net investment income................... $ 15,312
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 4,282,960
Change in unrealized depreciation on
investments............................ (115,118)
------------
Net realized and unrealized gain
on investments......................... $ 4,167,842
------------
Net increase in net assets from operations $ 4,183,154
=============
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, 2007 December 31, 2006
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income (loss)............................................... $ 15,312 $ (116,768)
Net realized gain on investments........................................... 4,282,960 4,175,456
Change in unrealized depreciation of investments........................... (115,118) (2,770,820)
-------------- --------------
Net increase in net assets resulting from operations..................... $ 4,183,154 $ 1,287,868
-------------- --------------
Distributions to shareholders (Note 1F) -
From net investment income................................................. $ (33,344) $ --
From net realized gain..................................................... (2,361,503) (4,229,388)
-------------- --------------
Total distributions...................................................... $ (2,394,847) $ (4,229,388)
-------------- --------------
Net decrease in net assets from fund share transactions (Note 4)............. $(12,589,703) $(6,358,299)
-------------- --------------
Net decrease in net assets................................................... $(10,801,396) $(9,299,819)
NET ASSETS:
At beginning of period....................................................... 38,351,805 47,651,624
-------------- --------------
At end of period............................................................. $ 27,550,409 $ 38,351,805
============== ==============
ACCUMULATED UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD................ $ (14,174) $ 3,858
============== ==============
See notes to financial statements
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WSBC)
- -------------------------------------------------------------------------------
Six Months
Ended June 30 Year Ended December 31,
----------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 2007(5) 2006(5) 2005 2004 2003(5) 2002(5)
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........ $ 12.270 $ 13.030 $ 13.226 $ 11.870 $ 9.270 $ 11.580
--------- --------- --------- --------- --------- ---------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(loss)(1) ........ $ 0.007 $ (0.034) $ (0.053) $ (0.028) $ (0.023) $ (0.046)
Net realized and unrealized gain (loss) 1.771 0.529 1.476 1.884 2.756 (1.831)
--------- --------- --------- --------- --------- ---------
Total income (loss)
from investment operations......... $ 1.778 $ 0.495 $ 1.423 $ 1.856 $ 2.733 $ (1.877)
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Distributions from investment income... $ (0.016) $ -- $ -- $ -- $ -- $ --
Distributions from capital gains....... (1.112) (1.255) (1.619) (0.500) (0.133) (0.433)
--------- --------- --------- --------- --------- ---------
Total distributions................ $ (1.128) $ (1.255) $ (1.619) $ (0.500) $ (0.133) $ (0.433)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.............. $ 12.920 $ 12.270 $ 13.030 $ 13.226 $ 11.870 $ 9.270
========= ========= ========= ========= ========= =========
TOTAL RETURN(2) ............................ 15.60% 3.77% 11.09% 15.73% 30.06% (16.98)%
RATIOS/SUPPLEMENTAL DATA(1):
Net assets, end of period (000 omitted) $ 27,550 $ 38,352 $ 47,652 $ 43,498 $ 38,190 $ 32,817
Ratios (As a percentage of average daily net assets):
Net expenses.......................... 1.26%(7) 1.26% 1.27% 1.26% 1.25% 1.26%(3)
Net expenses after custodian fee
reduction(6.......................... 1.25%(7) 1.25% 1.25% 1.25% 1.25% 1.25%(3)
Interest expense...................... 0.07%(7) -- -- -- -- --
Net investment (loss)................. 0.11%(7) (0.27)% (0.18)% (0.23)% (0.23)% (0.44)%
Portfolio turnover rate ............... 36% 66% 110% 69% 106% 119%(4)
- --------------------------------------------------------------------------------------------------------------------------------
(1)For the six months ended June 30, 2007 and for the years ended December 31,
2006, 2005, 2004, 2003, and 2002, the operating expenses of the Fund were
reduced by a waiver of fees and/or an allocation of expenses to the
distributor and/or investment adviser. Had such action not been undertaken,
net investment loss per share and the ratios would have been as follows:
2007 2006 2005 2004 2003 2002
- --------------------------------------------------------------------------------------------------------------------------------
Net investment loss per share.......... $ (0.023) $ (0.058) $ (0.111) $ (0.050) $ (0.057) $ (0.064)
========= ========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 1.72%(7) 1.46% 1.45% 1.44% 1.59% 1.43%(3)
========= ========= ========= ========= ========= =========
Expenses after custodian fee reduction 1.71%(7) 1.44% 1.43% 1.43% 1.59% 1.42%(3)
========= ========= ========= ========= ========= =========
Interest expense................... 0.07%(7) -- -- -- -- --
========== ========== ========= ========= ========= ==========
Net investment loss................ (0.36)%(7) (0.46)% (0.38)% (0.41)% (0.57)% (0.61)%
========= ========= ========= ========= ========= =========
- --------------------------------------------------------------------------------------------------------------------------------
(2)Total return is calculated assuming a purchase at the net asset value on the
first day and a sale at the net asset value on the last day of each period
reported. Dividends and distributions, if any, are assumed to be invested at
the net asset value on the reinvestment date.
(3)Includes Fund's share of its corresponding portfolio's allocated expenses (Note 1).
(4)Represents portfolio turnover rate of the Fund's corresponding portfolio (Note 1).
(5)Certain per share amounts are based on average shares outstanding.
(6)Under a written agreement in effect through the current fiscal year, Wright
waives a portion of its advisory fee and/or distribution fees and assumes
operating expenses to the extent necessary to limit the expense ratio to
1.25% after custodian fee reductions, if any.
(7)Annualized.
See notes to financial statements
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - JUNE 30, 2007 (UNAUDITED)
Shares Value
EQUITY INTERESTS -- 101.5%
AUTOMOBILES & COMPONENTS -- 2.6%
Cooper Industries Ltd - Class A......3,720 $ 212,375
Harley-Davidson, Inc..................1,950 116,239
Johnson Controls, Inc................10,720 1,241,054
------------
$ 1,569,668
------------
BANKS -- 6.2%
Bank of America Corp.................46,335 $ 2,265,318
Synovus Financial Corp................5,900 181,130
Wells Fargo & Co.....................36,205 1,273,330
------------
$ 3,719,778
------------
CAPITAL GOODS -- 10.9%
Caterpillar, Inc.....................16,720 $ 1,309,176
Cummins, Inc..........................9,040 914,938
Danaher Corp..........................4,665 352,207
General Electric Co...................9,735 372,656
Illinois Tool Works, Inc..............3,785 205,109
Lockheed Martin Corp.................13,270 1,249,105
Paccar, Inc..........................18,412 1,602,580
Parker Hannifin.......................2,025 198,268
Terex Corp.* .........................4,285 348,370
------------
$ 6,552,409
------------
COMMUNICATIONS EQUIPMENT -- 1.6%
Cisco Systems, Inc.* ................35,515 $ 989,093
------------
COMPUTERS & PERIPHERALS -- 5.1%
Hewlett-Packard Co...................40,615 $ 1,812,241
International Business Machines Corp..9,455 995,139
Lexmark International, Inc. - Class A* 5,160 254,440
------------
$ 3,061,820
------------
CONSUMER DURABLES & APPAREL -- 1.2%
Mattel, Inc..........................16,305 $ 412,353
VF Corp...............................3,355 307,251
------------
$ 719,604
------------
DIVERSIFIED FINANCIALS -- 12.4%
Capital One Financial Corp............7,450 $ 584,378
Citigroup, Inc.......................15,544 797,252
Franklin Resources, Inc...............4,500 596,115
Goldman Sachs Group, Inc., (The)......8,315 1,802,276
JPMorgan Chase & Co..................20,300 983,535
Lehman Brothers Holdings, Inc........16,285 1,213,558
Merrill Lynch & Co....................5,465 456,765
Morgan Stanley.......................12,705 1,065,695
------------
$ 7,499,574
------------
ELECTRONICS -- 0.2%
MEMC Electronic Materials, Inc.* .....2,025 $ 123,768
------------
ENERGY -- 11.6%
Chevron Corp.........................18,570 $ 1,564,337
ConocoPhillips Co....................13,635 1,070,347
ENSCO International, Inc..............3,075 187,606
Exxon Mobil Corp.....................32,745 2,746,651
Occidental Petroleum Corp............14,320 828,842
Valero Energy Corp....................4,335 320,183
XTO Energy, Inc.......................4,475 268,947
------------
$ 6,986,913
------------
ENTERTAINMENT & LEISURE -- 2.9%
CBS Corp. - Class B...................7,200 $ 239,904
Hasbro, Inc...........................3,830 120,300
Walt Disney Co., (The)...............40,600 1,386,084
------------
$ 1,746,288
------------
FOOD, BEVERAGE & TOBACCO -- 5.6%
Altria Group, Inc....................13,965 $ 979,505
Archer-Daniels-Midland Co............20,660 683,639
Kraft Foods, Inc.,- Class A..........10,859 382,780
Kroger Co.............................7,080 199,160
Pepsi Bottling Group..................5,700 191,976
PepsiCo, Inc..........................9,975 646,879
Reynolds American, Inc................4,395 286,554
------------
$ 3,370,493
------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.0%
AmerisourceBergen Corp................7,475 $ 369,788
Cigna Corp............................6,675 348,568
Humana, Inc.* ........................7,510 457,434
Laboratory Corp of America Holdings* .4,670 365,474
UnitedHealth Group, Inc...............6,711 343,201
WellPoint, Inc.* ....................13,905 1,110,036
------------
$ 2,994,501
------------
HOTELS, RESTAURANTS & LEISURE -- 1.5%
McDonald's Corp......................15,155 $ 769,268
Starwood Hotels & Resorts
Worldwide, Inc.....................2,245 150,572
------------
$ 919,840
------------
INSURANCE -- 4.1%
AMBAC Financial Group, Inc............5,725 $ 499,163
Chubb Corp............................4,200 227,388
Progressive Corp.....................40,115 959,952
Torchmark Corp........................3,550 237,850
Travelers Cos., Inc. (The)............9,920 530,720
------------
$ 2,455,073
------------
MATERIALS -- 2.0%
Allegheny Technologies, Inc...........1,755 $ 184,064
International Flavors & Fragrances
Inc.................................7,160 373,322
Nucor Corp............................7,780 456,297
Pactiv Corp.* ........................6,130 195,486
------------
$ 1,209,169
------------
MEDIA -- 1.1%
Citadel Broadcasting Corp.............3,117 $ 20,105
DIRECTV Group, Inc.* ................19,195 443,596
Omnicom Group, Inc....................4,190 221,735
------------
$ 685,436
------------
OFFICE ELECTRONICS -- 0.5%
Xerox Corp.* ........................17,160 $ 317,117
------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 8.0%
Forest Laboratories, Inc.* ..........11,160 $ 509,454
Gilead Sciences, Inc.* ..............16,700 647,459
Johnson & Johnson, Inc...............12,975 799,520
King Pharmaceuticals, Inc.* .........12,905 264,036
Merck & Co., Inc......................7,125 354,825
Mylan Laboratories, Inc...............9,515 173,078
Pfizer, Inc..........................80,685 2,063,115
-----------
$ 4,811,487
------------
REAL ESTATE -- 1.3%
Boston Properties, Inc. REIT..........5,280 $ 539,246
CB Richard Ellis Group Inc.- Class A* 7,190 262,435
------------
$ 801,681
------------
RETAILING -- 3.9%
Autozone, Inc.* ......................3,195 $ 436,501
Big Lots, Inc.* ......................2,480 72,962
Home Depot, Inc.......................8,650 340,378
J.C. Penney Co., Inc..................5,105 369,500
Jones Apparel Group, Inc..............3,290 92,943
Nordstrom, Inc........................6,780 346,594
Office Depot, Inc.* ..................3,935 119,231
Polo Ralph Lauren Corp................3,640 357,120
Sherwin-Williams Co...................3,175 211,042
------------
$ 2,346,271
------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS -- 2.6%
Applied Materials, Inc...............35,540 $ 706,180
Intel Corp...........................22,185 527,116
Novellus Systems, Inc.* .............11,835 335,759
------------
$ 1,569,055
------------
SOFTWARE & SERVICES -- 4.9%
BMC Software, Inc.* ..................9,955 $ 301,637
Computer Sciences Corp.* .............5,175 306,101
Convergys Corp.* ....................14,480 350,995
Google Inc. - Class A* .................445 232,904
Microsoft Corp........................8,725 257,126
Nvidia Corp.* .......................21,180 874,946
Oracle Corp.* .......................32,240 635,450
------------
$ 2,959,159
------------
TELECOMMUNICATION SERVICES -- 3.5%
AT&T, Inc............................51,095 $ 2,120,443
------------
TRANSPORTATION -- 0.3%
Norfolk Southern Corp.................3,375 $ 177,424
------------
UTILITIES -- 2.5%
Entergy Corp..........................9,045 $ 970,981
Exelon Corp...........................4,678 339,623
TXU Corp..............................2,970 199,881
------------
$ 1,510,485
------------
TOTAL EQUITY INTERESTS--101.5%
(identified cost, $50,221,518) $61,216,549
OTHER ASSETS, LESS LIABILITIES - (1.5%) (886,064)
------------
NET ASSETS - 100% $60,330,485
============
See notes to financial statements
REIT - Real Estate Investment Trust * Non-income producing security.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2007 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments, at value
(identified cost $50,221,518) (Note 1A). $ 61,216,549
Cash.................................... 914
Receivable for fund shares sold......... 30,452
Dividends receivable.................... 57,974
Other assets............................ 22,479
------------
Total assets............................ $ 61,328,368
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 179,088
Demand note payable..................... 791,000
Payable to affiliate for distribution fees 3,057
Payable to affiliate for Trustees' fees. 55
Accrued expenses and other liabilities.. 24,683
------------
Total liabilities....................... $ 997,883
------------
NET ASSETS................................ $ 60,330,485
============
NET ASSETS CONSIST OF:
Paid-in capital......................... $ 66,146,563
Accumulated undistributed net realized loss on
investments (computed on the basis
of identified cost).................... (16,872,756)
Unrealized appreciation on investments
(computed on the basis of identified cost) 10,995,031
Accumulated undistributed net investment
income................................. 61,647
------------
Net assets applicable to
outstanding shares................... $ 60,330,485
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 4,101,727
=============
NET ASSET VALUE, OFFERING PRICE
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $ 14.71
=============
See notes to financial statements
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2007 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C)
Dividend income......................... $ 523,879
------------
Expenses -
Investment adviser fee (Note 2)......... $ 184,781
Administrator fee (Note 2).............. 36,956
Compensation of Trustees who are not employees
of the investment adviser or administrator 6,516
Custodian fee (Note 1D)................. 36,376
Distribution expenses (Note 3).......... 76,992
Transfer and dividend disbursing agent fees 12,173
Printing................................ 2,648
Interest expense........................ 6,007
Shareholder communications.............. 810
Audit services.......................... 8,182
Legal services.......................... 5,969
Registration costs...................... 4,609
Miscellaneous .......................... 1,820
------------
Total expenses.......................... $ 383,839
------------
Deduct -
Reduction of custodian fee (Note 1D).... $ (1,640)
------------
Net expenses............................ $ 382,199
------------
Net investment income................... $ 141,680
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 3,676,939
Change in unrealized appreciation on
investments............................ 303,784
------------
Net realized and unrealized gain on
investments............................ $ 3,980,723
------------
Net increase in net assets from operations $ 4,122,403
=============
See notes to financial statemnets
WRIGHT MAJOR BLUE CHIP EQUITIES FUNd (WMBC)
- -------------------------------------------------------------------------------
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2007 December 31, 2006
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income ..................................................... $ 141,680 $ 312,895
Net realized gain on investments........................................... 3,676,939 9,867,709
Change in unrealized appreciation (depreciation) on investments............ 303,784 (3,314,951)
-------------- --------------
Net increase in net assets resulting from operations..................... $ 4,122,403 $ 6,865,653
-------------- --------------
Distributions to shareholders (Note 1F) -
From net investment income................................................. $ (93,428) $ (314,151)
-------------- --------------
Total distributions...................................................... $ (93,428) $ (314,151)
-------------- --------------
Decrease in net assets from fund share transactions (Note 4)................. $ (6,974,433) $(10,017,143)
-------------- --------------
Net decrease in net assets................................................... $ (2,945,458) $(3,465,641)
NET ASSETS:
At beginning of period....................................................... 63,275,943 66,741,584
-------------- --------------
At end of period............................................................. $ 60,330,485 $ 63,275,943
============== ==============
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ 61,647 $ 13,395
See notes to financial statements ============== ==============
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
- -----------------------------------------------------------------------------
Six Months
Ended June 30 Year Ended December 31,
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 2007(3) 2006(3) 2005 2004 2003(3) 2002(3)
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........ $ 13.790 $ 12.420 $ 11.780 $ 10.530 $ 8.570 $ 11.380
--------- --------- --------- --------- --------- ---------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)........... $ 0.033 $ 0.062(1) $ 0.077(1) $ 0.053(1) $ 0.029(1) $ 0.024
Net realized and unrealized gain (loss) 0.908 1.374 0.651 1.247 1.958 (2.812)
--------- --------- --------- --------- --------- ---------
Total income (loss)
from investment operations......... $ 0.941 $ 1.436 $ 0.728 $ 1.300 $ 1.987 $ (2.788)
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from investment income....... $ (0.021) $ (0.066) $ (0.088) $ (0.050) $ (0.027) $ (0.022)
--------- --------- --------- --------- --------- ---------
Total distributions................ $ (0.021) $ (0.066) $ (0.088) $ (0.050) $ (0.027) $ (0.022)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.............. $ 14.710 $ 13.790 $ 12.420 $ 11.780 $ 10.530 $ 8.570
========= ========= ========= ========= ========= =========
TOTAL RETURN(2)............................. 6.84% 11.57% 6.20% 12.36% 23.20% (24.50)%
RATIOS/SUPPLEMENTAL DATA(1):
Net assets, end of period (000 omitted) $ 60,330 $ 63,276 $ 66,742 $ 65,503 $ 71,539 $ 66,609
Ratios (As a percentage of average
daily net assets):
Net expenses to average net asset..... 1.25%(5) 1.26% 1.26% 1.25% 1.25% 1.22%
Net expenses after custodian fee
reduction(4)......................... 1.24%(5) 1.25% 1.25% 1.25% 1.25% 1.22%
Interest expense...................... 0.02%(5) -- -- -- -- --
Net investment income (loss).......... 0.46%(5) 0.48% 0.66% 0.49% 0.31% 0.25%
Portfolio turnover rate................ 29% 97% 82% 74% 143% 130%
- --------------------------------------------------------------------------------------------------------------------------------
(1)For the years ended December 31, 2006, 2005, 2004 and 2003, the operating
expenses of the Fund were reduced by fee waivers and/or 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:
2006 2005 2004 2003
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income per share........ $ 0.062 $ 0.077 $ 0.050 $ 0.024
========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses............................. 1.28% 1.26% 1.28% 1.31%
========= ========= ========= =========
Expenses after custodian fee reduction 1.27% 1.25% 1.28% 1.31%
========= ========= ========= =========
Interest expense..................... -- -- -- --
========== ========== ========== ==========
Net investment income................ 0.46% 0.66% 0.46% 0.26%
========= ========= ========= =========
- --------------------------------------------------------------------------------------------------------------------------------
(2)Total return is calculated assuming a purchase at the net asset value on the
first day and a sale at the net asset value on the last day of each period
reported. Dividends and distributions, if any, are assumed to be invested at
the net asset value on the reinvestment date.
(3)Certain per share amounts are based on average shares outstanding.
(4)Under a written agreement in effect through the current fiscal year, Wright
waives a portion of its advisory fee and/or distribution fees and assumes
operating expenses to the extent necessary to limit expense ratios to 1.25%
after custodian fee reductions, if any.
(5)Annualized.
See notes to financial statements
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - JUNE 30, 2007 (UNAUDITED)
Shares Value
EQUITY INTERESTS -- 98.2%
AUSTRALIA -- 5.3%
BHP Billiton Ltd.....................71,868 $ 2,135,878
BlueScope Steel Ltd.................105,496 925,459
Coles Group Ltd.....................265,392 3,629,556
QBE Insurance Group Ltd.............143,677 3,803,142
Rio Tinto Ltd.........................9,456 792,540
Westfield Group.....................190,651 3,228,496
------------
$14,515,071
------------
AUSTRIA -- 0.3%
Boehler-Uddeholm AG...................8,813 $ 880,777
------------
BELGIUM -- 1.8%
Dexia................................47,367 $ 1,484,779
Fortis...............................78,080 3,322,759
------------
$ 4,807,538
------------
CANADA -- 5.2%
Astral Media, Inc....................27,548 $ 1,094,151
Atco Ltd.............................13,179 692,184
Encana Corp..........................63,497 3,910,997
Husky Energy, Inc....................32,771 2,701,778
IPSCO, Inc............................7,708 1,220,310
Jean Coutu Group, Inc. -- Class A....32,827 478,325
Lundin Mining Corp.*.................50,851 614,753
Methanex Corp........................39,499 981,766
Sino-Forest Corp., Class A*..........20,043 288,280
Teck Cominco Ltd. Class B............51,107 2,171,597
------------
$14,154,141
------------
DENMARK -- 2.7%
Danske Bank Aq (Stammaktie).........148,046 $ 6,072,084
Topdanmark A/S*.......................7,011 1,198,570
------------
$ 7,270,654
------------
FINLAND -- 0.4%
Rautaruukki Oyj*.....................18,099 $ 1,162,782
------------
FRANCE -- 8.8%
Axa (Actions Ordinaires).............36,683 $ 1,585,847
BNP Paribas..........................71,729 8,559,751
Compagnie Generale des Establissments
Michelin*............................2,163 303,371
Danone...............................11,072 897,496
Eiffage SA............................7,761 1,110,003
Societe Generale de France
(Actions Ord.).......................30,664 5,695,566
Unibail-Rodamco.......................9,680 2,485,893
Vallourec SA..........................6,915 2,224,656
Vinci................................13,663 1,023,748
------------
$23,886,331
------------
GERMANY -- 9.6%
Allianz Ag Holding (Namensaktie)......7,309 $ 1,713,536
Altana AG (Stammaktie)...............89,392 2,157,416
BASF AG (Stammaktie).................27,534 3,615,971
Continental AG (Stammaktie)..........15,896 2,242,154
Deutsche Bank AG (Stammaktie)........33,914 4,937,973
Deutsche Boerse AG...................14,954 1,691,425
E. On AG (Stammaktie)................31,849 5,346,169
Linde AG (Stammaktie).................6,570 791,925
Porsche AG (Preferred Stock)............352 628,470
Stada Arzneimittel AG................26,540 1,693,252
ThyssenKrupp AG......................23,215 1,383,609
------------
$26,201,900
------------
HONG KONG -- 2.3%
Bank of East Asia Ltd.(The)
(Ordinary)*........................458,800 $ 2,582,177
CLP Holdings Ltd. (Ordinary)........141,000 945,964
Sino Land Co........................780,000 1,624,273
Sun Hung Kai Properties Ltd..........91,000 1,095,320
------------
$ 6,247,734
------------
IRELAND -- 0.9%
Bank of Ireland......................49,067 $ 990,035
CRH PLC (Ordinary)...................18,351 907,836
Grafton Group PLC....................47,814 681,914
------------
$ 2,579,785
------------
ITALY -- 3.8%
BANCA INTESA Spa....................311,251 $ 2,324,591
Eni S.p.A (Azioni Ordinarie)........218,084 7,922,947
------------
$10,247,538
------------
JAPAN -- 21.0%
Brother Industries, Ltd.............362,000 $ 5,308,571
Canon, Inc..........................113,050 6,618,499
Daiichi Sankyo Company, Ltd..........46,900 1,241,856
Hisamitsu Pharmaceutical Co., Inc....17,500 481,801
Honda Motor Co., Ltd.................71,900 2,619,944
Japan Tobacco, Inc......................349 1,718,223
Kawasaki Kisen Kaisha Ltd...........121,000 1,476,554
Kddi Corp...............................421 3,112,458
Makita Corp..........................62,000 2,751,205
Marubeni Corp........................90,000 739,706
Mitsubishi Corp.......................7,700 201,393
Mitsui Chemicals, Inc...............247,000 1,874,076
Mitsui OSK Lines, Ltd...............234,000 3,171,918
Mitsumi Electric Company Ltd.........93,900 3,360,768
Nintendo Company Ltd..................1,500 547,795
Nippon Seiki.........................38,000 847,727
Nippon Steel Corp.*.................350,000 2,460,019
Pacific Metals Co., Ltd.............244,000 4,080,003
Ricoh Co., Ltd.......................42,000 969,270
Sumitomo Corp........................127,800 2,328,434
Sumitomo Metal Industries, Ltd......143,000 840,666
Toyota Boshoku Corp..................26,100 659,395
Toyota Motor Corp....................89,000 5,621,280
Toyota Tsusho Corp...................58,200 1,343,131
Yamaha Motor Co., Ltd...............100,000 2,898,903
------------
$57,273,595
------------
NETHERLANDS -- 3.8%
Heineken NV..........................26,216 $ 1,539,808
ING Groep NV ADR (Aandeel).........162,431 7,193,181
Koninklijke Philips
Electronics N.V.(Aandeel).......... 40,961 1,745,895
------------
$10,478,884
------------
NEW ZEALAND -- 0.5%
Fletcher Building Limited...........152,523 $ 1,455,221
------------
NORWAY -- 2.5%
Norsk Hydro Asa (Ordinaere Aksje)*...24,326 $ 939,045
Statoil ASA..........................70,354 2,185,776
Telenor Group ASA...................191,877 3,760,319
------------
$ 6,885,140
------------
PORTUGAL -- 1.1%
Energias de Portugal SA.............414,861 $ 2,291,588
Portugal Telecom, SGPS, SA...........56,131 775,513
------------
$ 3,067,101
------------
SINGAPORE -- 0.8%
Capitaland, Ltd.....................428,000 $2,266,697
------------
SPAIN -- 3.8%
ACS, Actividades de Construccion
y Servicious SA.....................30,181 $ 1,928,808
Endesa SA...........................121,756 6,612,035
Repsol YPF SA (Accion)...............32,347 1,277,823
Sacyr Vallehermoso...................12,875 621,285
------------
$10,439,951
------------
SWEDEN -- 4.5%
Axfood AB*...........................22,424 $ 794,644
Kungsleden AB........................73,678 921,351
Nobia AB............................132,669 1,654,203
Scania AB Class B....................76,912 1,884,328
Ssab Svenskt Stal AB*................42,089 1,733,965
TeliaSonera AB......................706,202 5,200,840
------------
$12,189,331
------------
SWITZERLAND -- 3.3%
Credit Suisse Group..................26,415 $ 1,882,629
Swiss Reinsurance ...................16,133 1,472,979
UBS AG...............................40,151 2,411,157
Zurich Financial Services
(Inhaberaktie)......................10,608 3,282,542
------------
$ 9,049,307
------------
UNITED KINGDOM -- 15.8%
Anglo American PLC (Ordinary).......105,666 $ 6,243,488
AstraZeneca PLC......................55,682 2,997,383
Barclays PLC (Ordinary).............139,021 1,941,316
Barratt Developments PLC.............92,340 1,839,694
Bellway PLC (Ordinary)...............44,588 1,127,185
BP PLC (Ordinary)...................184,746 2,235,111
British Airways PLC.................116,359 977,017
George Wimpey PLC....................51,347 518,191
Hammerson PLC........................31,677 911,381
HSBC Holdings PLC....................31,200 568,695
Inchape PLC.........................109,502 1,100,694
Land Securities Group PLC............43,042 1,505,208
Legal & General Group (Ordinary)....514,342 1,548,957
Man Group PLC.......................605,946 7,403,855
Persimmon PLC (Ordinary).............75,142 1,745,814
Rio Tinto PLC........................10,782 827,874
Royal Bank of Scotland Group
PLC (Ordinary).....................184,547 2,343,783
Royal Dutch Shell PLC................49,114 2,052,586
Taylor Woodrow PLC..................216,852 1,569,555
Tesco PLC...........................132,500 1,112,546
Travis Perkins PLC...................65,984 2,515,353
------------
$43,085,686
------------
TOTAL EQUITY INTERESTS-- 98.2%
(identified cost, $216,085,816) $268,145,164
------------
OTHER ASSETS, LESS LIABILITIES -- 1.8% 5,005,168
------------
NET ASSETS -- 100% $273,150,332
=============
ADR - American Depository Receipt
* Non-income producing security.
HOLDINGS BY INDUSTRY
- ------------------------------
% of net assets at 6/30/07
Materials 14.8%
Banks 14.7%
Diversified Financials 10.8%
See notes to financial statements
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2007 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments, at value
(identified cost $216,085,816) (Note 1A) $268,145,164
Cash.................................... 4,138,849
Foreign currency, at value (cost $347,541)
(Note 1)............................... 347,592
Receivable for investments sold......... 868,489
Receivable for fund shares sold......... 398,944
Dividends receivable.................... 363,383
Other assets............................ 28,015
Tax reclaims receivable................. 188,567
------------
Total assets.......................... $274,479,003
------------
LIABILITIES:
Payable for investments purchased....... $ 868,489
Payable for fund shares reacquired...... 338,098
Payable to affiliate for Trustees' fees. 50
Accrued expenses and other liabilities.. 122,034
------------
Total liabilities..................... $ 1,328,671
------------
NET ASSETS................................ $273,150,332
============
NET ASSETS CONSIST OF:
Paid-in capital......................... $210,333,788
Accumulated undistributed net realized gain on
investments and foreign currency (computed on
the basis of identified cost).......... 9,649,800
Unrealized appreciation of investments
(computed on the basis of identified cost) 52,070,076
Accumulated undistributed net investment
income................................. 1,096,668
------------
Net assets applicable to
outstanding shares.................... $273,150,332
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 11,130,748
=============
NET ASSET VALUE, OFFERING PRICE
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $ 24.54
=============
See notes to financial statements
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2007 (Unaudited)
- ------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C)
Dividend income......................... $ 5,445,708
Less: Foreign taxes..................... (601,736)
------------
Investment income....................... $ 4,843,972
------------
Expenses -
Investment adviser fee (Note 2)......... $ 939,667
Administrator fee (Note 2).............. 133,063
Compensation of Trustees who are not employees
of the investment adviser or administrator 6,516
Custodian fee (Note 1D)................. 211,170
Distribution expenses (Note 3).......... 298,122
Transfer and dividend disbursing agent fees 30,160
Printing................................ 16,276
Interest expense........................ 55,915
Shareholder communications.............. 6,040
Audit services.......................... 9,189
Legal services.......................... 6,120
Registration costs...................... 7,327
Miscellaneous .......................... 4,380
------------
Total expenses.......................... $ 1,723,945
------------
Deduct -
Reduction of custodian fee (Note 1D).... $ (49,100)
------------
Net expenses............................ $ 1,674,845
------------
Net investment income................... $ 3,169,127
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain -
Investment transactions
(identified cost basis)............... $ 10,422,520
Foreign currency transactions.......... 13,067
------------
Net realized gain....................... $ 10,435,587
------------
Change in unrealized appreciation on
Investments (identified cost basis).... 7,503,245
Foreign currency....................... 548
------------
Net unrealized gain..................... $ 7,503,793
------------
Net realized and unrealized gain
on investments......................... $ 17,939,380
------------
Net increase in net assets from operations $ 21,108,507
=============
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, 2007 December 31, 2006
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income ..................................................... $ 3,169,127 $ 2,161,397
Net realized gain on investment and foreign currency transactions.......... 10,435,587 12,241,322
Change in unrealized appreciation on investments and translation of assets
and liabilities in foreign currencies.................................... 7,503,793 28,024,106
--------------- ---------------
Net increase in net assets resulting from operations..................... $ 21,108,507 $ 42,426,825
--------------- ---------------
Distributions to shareholders (Note 1F) -
From net investment income................................................. $ (2,127,940) $ (2,603,140)
From net realized gain..................................................... (1,295,052) (227,144)
--------------- ---------------
Total distributions...................................................... $ (3,422,992) $ (2,830,284)
--------------- ---------------
Net increase in net assets from fund share transactions (Note 4) ............ $ 37,263,645 $ 68,707,253
--------------- ---------------
Net increase in net assets................................................... $ 54,949,160 $108,303,794
NET ASSETS:
At beginning of period....................................................... 218,201,172 109,897,378
--------------- --------------
At end of period............................................................. $ 273,150,332 $218,201,172
=============== ===============
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD................................................................ $ 1,096,668 $ 55,481
=============== ===============
See notes to financial statements
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
- ------------------------------------------------------------------------------
Six Months
Ended June 30 Year Ended December 31,
---------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 2007(1) 2006(1) 2005 (1) 2004 2003(1) 2002(1)
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........ $22.830 $18.060 $15.070 $12.890 $ 9.840 $11.510
--------- --------- --------- --------- --------- ---------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income.................. $ 0.311 $ 0.255 $ 0.129 $ 0.128 $ 0.073 $ 0.070
Net realized and unrealized gain (loss) 1.739 4.859 3.028 2.140 3.044 (1.740)
--------- --------- --------- --------- --------- ---------
Total income (loss)
from investment operations...... $ 2.050 $ 5.114 $ 3.157 $ 2.268 $ 3.117 $ (1.670)
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Distributions from investment income... $ (0.214) $ (0.320) $ (0.167) $ (0.088) $ (0.067) $ -
Distributions from capital gains....... (0.130) (0.024) - - - -
--------- --------- --------- --------- --------- ---------
Total distributions................ $ (0.344) $ (0.344) $ (0.167) $(0.088) $ (0.067) $ -
--------- --------- --------- --------- --------- ---------
Redemption fees............................. $ 0.004 - - - - -
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.............. $24.540 $22.830 $18.060 $15.070 $12.890 $ 9.840
========= ========= ========= ========= ========= =========
TOTAL RETURn(2) ............................ 9.16% 28.49% 21.13% 17.71% 31.96% (14.51)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $273,150 $218,201 $109,897 $ 62,266 $ 54,586 $ 50,835
Ratios (As a percentage of average
daily net assets):
Net expenses.......................... 1.44%(5) 1.46% 1.66% 1.72% 1.80% 1.66%(3)
Net expenses after custodian fee reduction 1.40%(5) 1.37% 1.62% 1.71% 1.80% 1.65%
Interest expense...................... 0.05%(5) -- -- -- -- --
Net investment income................. 2.65%(5) 1.26% 0.81% 0.97% 0.81% 0.65%
Portfolio turnover rate .............. 43% 116% 99% 121% 77% 62%(4)
- --------------------------------------------------------------------------------------------------------------------------------
(1)Certain per share amounts are based on average shares outstanding.
(2)Total return is calculated assuming a purchase at the net asset value on the
first day and a sale at the net asset value on the last day of each period
reported. Dividends and distributions, if any, are assumed to be invested at
the net asset value on the reinvestment date.
(3)Includes the Fund's share of its corresponding portfolio's allocated expenses (Note 1).
(4)Represents portfolio turnover rate of the Fund's corresponding portfolio (Note 1).
(5)Annualized.
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 (the 1940 Act), as a diversified, open-end management
investment company. The Funds seek to provide total return consisting of price
appreciation and current income. 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 Valuation - Securities listed on securities exchanges or in the
NASDAQ Global or Global Select 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. However, if the ex-dividend date has passed, certain
dividends from foreign securities are recorded as the Fund is informed of
the ex-dividend date. Interest income is recorded on the accrual basis.
D. Expense Reduction - Investors Bank & Trust (IBT) serves as custodian to the
Funds. Effective July 2, 2007, the parent company of IBT was acquired by
State Street Corporation. Pursuant to the custodian agreement, IBT receives
a fee reduced by credits which are determined based on the average daily
cash balance the Funds maintain with IBT. All credit balances, if any, used
to reduce a Fund's custodian fees are reported as a reduction of total
expenses on the Statement of Operations.
E. Federal Taxes - The Trust's policy is to comply with the provisions of
the Internal Revenue Code (the Code) available to regulated investment
companies and distribute to shareholders each year all of its taxable
income, including any net realized gain on investments. Accordingly,
no provision for federal income or excise tax is necessary. At December 31,
2006, WMBC, for federal income tax purposes, had capital loss carryovers
of $20,503,370 which will reduce the Fund's taxable income arising from
future net realized gain on investment transactions, if any, to the extent
permitted by the Code, and thus will reduce the amount of the distribution
to shareholders which would otherwise be necessary to relieve
the Fund of any liability for federal income or excise tax. Pursuant to
the Code, such capital loss carryovers will expire as follows:
12/31
- -------------------------------------------------------------------------
2009 $ 669,204
2010 17,603,398
2011 2,230,768
- -------------------------------------------------------------------------
At December 31, 2006, net currency losses of $19,651 for WIBC attributable
to security transactions incurred after October 31, 2006 are treated as
arising on the first day of the Fund's taxable year ending December 31,
2007. 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 to Shareholders - The Trust's policy is to distribute
quarterly substantially all of the net investment income of WSBC and WMBC
and to distribute annually the net investment income of WIBC. Net realized
capital gains will be distributed at least annually. Distributions are paid
in the form of additional shares of the Fund or at the election of the
shareholder, in cash. The Funds distinguish between distributions on a tax
basis and a financial reporting basis. Accounting principles generally
accepted in the United States of America require that only distributions in
excess of tax basis earnings and profits be reported in the financial
statements as a return of capital. Permanent differences between book and
tax accounting relating to distributions are classified to paid-in capital.
G. Other - Investment transactions are accounted for on a trade-date basis.
H. Redemption Fees - Upon the redemption of WIBC shares within three months
after purchase, a fee of 2% of the current net asset value of these shares
will be assessed and retained by the Fund for the benefit of the remaining
shareholders. Redemption fees are accounted for as an addition to paid-in
capital.
I. 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 income and expense during the
reporting period. Actual results could differ from those estimates.
J. Interim Financial Statements - The interim financial statements relating to
June 30, 2007 and for the six months then ended have not been audited by an
independent registered public accounting firm, but in the opinion of the
Trust's management reflect all adjustments, consisting only of normal
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, 2007, the effective
annual rate was 0.79% for WIBC and 0.60% for WSBC and WMBC. Wright voluntarily
waived adviser fees of $30,362 on behalf of WSBC. 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, 2007, the effective
annual rate was 0.12% for WSBC and WMBC, and 0.11% 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 1940 Act. 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 and an affiliate of Wright, 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. Under a written agreement
in effect through the current fiscal year, Wright has agreed to waive a portion
of its advisory fee and/or distribution fees and assume operating expenses to
the extent necessary to limit expense ratios to 1.25% after custodian fee
reductions, if any, for both WSBC and WMBC. Pursuant to this agreement, the
principal underwriter made a reduction of its fees of $35,813 on behalf of WSBC.
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 combined
amount of service fee payable under the Service Plan and Rule 12b-1 distribution
fees may not exceed 0.25% annually of the average daily net assets of a Fund.
For the six months ended June 30, 2007, 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:
For the Six Month Ended Year Ended
June 30, 2007 (Unaudited) December 31, 2006
------------------------- -----------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
Wright Selected Blue Chip Equities Fund
Sold................................................... 67,151 $ 850,300 536,776 $ 6,889,335
Issued to shareholders in payment of distributions
declared.............................................. 184,037 2,120,106 297,905 3,759,968
Redemptions............................................ (1,243,558) (15,560,109) 1,367,163) (17,007,602)
------------ ---------------- ------------ ----------------
Net increase (decrease).............................. (992,370) $ (12,589,703) (532,482) $ (6,358,299)
============ ================ ============ ================
Wright Major Blue Chip Equities Fund
Sold.................................................. 186,546 $ 2,637,113) 600,054 $ 7,758,465
Issued to shareholders in payment of distributions
declared............................................. 5,713 77,005 18,825 257,085
Redemptions............................................ (677,724) (9,688,551) (1,403,539) (18,032,693)
------------ ---------------- ------------ ----------------
Net decrease......................................... (485,465) $ (6,974,433) (784,660) $ (10,017,143)
============ ================ ============ ================
Wright International Blue Chip Equities Fund
Sold................................................... 3,541,819 $ 84,450,030 6,330,093 $ 126,455,231
Issued to shareholders in payment of distributions
declared.............................................. 131,789 2,929,678 109,592 2,341,138
Redemptions............................................ (2,101,522) (50,159,205) (2,964,763) (60,089,116)
Redemption fees........................................ - 43,142 - -
------------ ---------------- ------------ ----------------
Net increase......................................... 1,572,086 $ 37,263,645 3,474,922 $ 68,707,253
============ ================ ============= ================
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than short-term obligations were
as follows:
Six Months Ended June 30, 2007
--------------------------------------------------------
WSBC WMBC WIBC
- --------------------------------------------------------------------------------------------------------------------------------
Purchases.............................. $ 10,611,596 $ 18,026,249 $ 139,825,978
============ ============ ============
Sales.................................. $ 24,853,690 $ 24,131,370 $ 104,237,673
============ ============ ============
- --------------------------------------------------------------------------------------------------------------------------------
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 2007, as computed on a federal income tax basis,
are as follows:
WSBC WMBC WIBC
- --------------------------------------------------------------------------------------------------------------------------------
Aggregate Cost......................... $ 21,556,772 $ 50,262,354 $ 218,926,419
============ ============ ============
Gross unrealized appreciation.......... 6,998,261 11,561,213 51,599,435
Gross unrealized depreciation.......... (526,927) (607,018) (2,380,690)
------------ ------------ ------------
Net unrealized appreciation............ $ 6,471,334 $10,954,195 $ 49,218,745
============ ============ ============
The net unrealized appreciation on foreign currency for WIBC is $10,728 at June 30, 2007 .
(7) LINE OF CREDIT
The Funds participate with other funds managed by Wright in a committed $10
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
$10 million line of credit, is allocated among the participating funds at the
end of each quarter. At June 30, 2007, WSBC and WMBC had balances outstanding
pursuant to this line of credit of $491,000 and $791,000, respectively.
The average borrowings and average interest rate for the six months ended
June 30, 2007 are as follows:
WSBC WMBC WIBC
- -------------------------------------------------------------------------------
Average borrowing $ 340,618 $ 171,785 $1,823,536
Average interest rate 6% 6% 6%
- -------------------------------------------------------------------------------
(8) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less publicly
available information about foreign companies, particularly those not subject to
the disclosure and reporting requirements of the U.S. securities laws. Foreign
issuers are generally not bound by uniform accounting, auditing, and financial
reporting requirements and standards of practice comparable to those applicable
to domestic issuers. Investments in foreign securities also involve the risk of
possible adverse changes in investment or exchange control regulations,
expropriation or confiscatory taxation, limitation on the removal of funds or
other assets of the Trust, political or financial instability or diplomatic and
other developments which could affect such investments.
(9) FINANCIAL INSTRUMENTS
The Funds may trade in financial instruments with off-balance sheet risk in
the normal course of their investing activities and to assist in managing
exposure to various market risks. These financial instruments include written
options, financial futures contracts, forward foreign currency contracts, credit
default swaps, and interest rate swaps and may involve, to a varying degree,
elements of risk in excess of the amounts recognized for financial statement
purposes. The notional or contractual amounts of these instruments represent the
investment a Fund has in particular classes of financial instruments and does
not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
(10) RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes - an
interpretation of FASB Statement No. 109". FIN 48 clarifies the accounting for
uncertainty in income taxes recognized in accordance with FASB Statement No.
109, "Accounting for Income Taxes". This interpretation prescribes a recognition
threshold and measurement attribute for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax return. It
also provides guidance on de-recognition, classification, interest and
penalties, accounting in interim periods, disclosure and transition. FIN 48 is
effective during the first required financial reporting period for fiscal years
beginning after December 15, 2006. Management has concluded that as of June 30,
2007, there are no uncertain tax positions that would require financial
statement recognition, de-recognition, or disclosure.
In September 2006, FASB issued Statement of Financial Accounting Standards
No. 157 (FAS 157), "Fair Value Measurements". FAS 157 defines fair value,
establishes a framework for measuring fair value in accordance with generally
accepted accounting principles and expands disclosure about fair value
measurements. FAS 157 is effective for fiscal years beginning after November 15,
2007. Management is currently evaluating the impact the adoption of FAS 157 will
have on the Funds' financial statement disclosures.
WRIGHT TOTAL RETURN BOND FUND (WTRB)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2007 (Unaudited)
Face Coupon Maturity Current
Amount Description Rate Date Value Yield
- ------------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 2.3%
$ 210,000 Credit-Based Asset Servicing and Securities,
Series 2005-CB7 AF2 5.147% 11-25-35 $ 208,575 5.2%
405,000 Structured Asset Securities Corp.,
Series 2004-23XS 1A4 4.930% 01-25-35 395,389 5.0%
------------
Total Asset Backed Securities (identified cost, $607,105) $ 603,964
------------
COMMERCIAL MORTGAGE-BACKED SECURITIES - 7.2%
$ 220,000 Citigroup Commercial Mortgage Trust,
Series 2004-C2 A5 4.733% 10-15-41 $ 206,803 5.0%
285,000 CS First Boston Mortgage Securities Corp.,
Series 2003-C3 A5 3.936% 05-15-38 260,706 4.3%
330,000 JP Morgan Chase Commercial Mortgage Securities,
Series 2004-C3 A5 4.878% 01-15-42 312,186 5.2%
265,000 Lehman Brothers UBS, Series 2006-C6 A4 5.372% 09-15-39 256,081 5.6%
270,000 Merrill Lynch Mortgage Trust, Series 2005-LC1 A4 5.291% 01-12-44 260,608 5.5%
420,000 Merrill Lynch/Countrywide Commercial Mortgage Trust,
Series 2006-2 A4 5.910% 06-12-46 423,386 5.9%
158,335 Salomon Brothers Mortage Securities VII,
Series 2002-KEY2 A2 4.467% 03-18-36 153,788 4.6%
------------
Total Commercial Mortgage-Backed Securities (identified cost, $1,918,607) $ 1,873,558
------------
NON-AGENCY MORTGAGE-BACKED SECURITIES - 1.1%
$ 292,847 First Horizon Alternative Mortgage Securities,
Series 2005-AA10 1A2 5.776% 12-25-35 $ 292,186 5.8%
------------
Total Non-Agency Mortgage-Backed Securities (identified cost, $292,847) $ 292,186
------------
CORPORATE BONDS -16.0%
AUTOMOBILE -- 0.5%
- -------------------
$ 125,000 DaimlerChrysler North America Holding Co. 7.200% 09-01-09 $ 129,076 7.0%
BANKS & MISCELLANEOUS FINANCIAL-- 1.8%
- --------------------------------------
$ 255,000 HSBC Finance Corp. 4.125% 11-16-09 $ 247,753 4.2%
200,000 Royal Bank of Scotland Group PLC 7.648% 08-31-49 223,629 6.8%
BUILDING - RESIDENTIAL/COMMERCIAL-- 0.4%
- ----------------------------------------
$ 110,000 Centex Corp. 7.875% 02-01-11 $ 115,519 7.5%
CABLE TV-- 0.4%
- ---------------
$ 100,000 Comcast Cable Communications Holdings 5.875% 02-15-18 $ 97,040 6.1%
COMMUNICATIONS EQUIPMENT-- 0.5%
- -------------------------------
$ 140,000 Harris Corp. 5.000% 10-01-15 $ 130,516 5.4%
DIVERSIFIED FINANCIALS-- 3.5%
- -----------------------------
$ 180,000 Countrywide Home Loans 6.250% 04-15-09 $ 182,147 6.2%
255,000 General Electric Capital Corp. 5.875% 02-15-12 258,243 5.8%
220,000 Goldman Sachs Group, Inc. 6.450% 05-01-36 216,719 6.5%
245,000 International Lease Finance Corp. 5.875% 05-01-13 246,944 5.8%
ELECTRIC UTILITIES-- 0.8%
- -------------------------
$ 130,000 American Electric Power 5.250% 06-01-15 $ 124,873 5.5%
90,000 Dominion Resources, Inc. 6.300% 03-15-33 89,333 6.3%
INFORMATION TECHNOLOGY-- 1.7%
- -----------------------------
$ 235,000 Cisco Systems, Inc. 5.500% 02-22-16 $ 229,703 5.6%
220,000 Oracle Corp. 5.000% 01-15-11 217,004 5.1%
INSURANCE -- 1.2%
- ------------------
$ 130,000 Fund American Cos., Inc. 5.875% 05-15-13 $ 127,992 6.0%
200,000 St. Paul Travelers 5.500% 12-01-15 194,556 5.7%
MEDICAL -- 0.5%
- ---------------
$ 125,000 Hospira, Inc. 4.950% 06-15-09 $ 123,818 5.0%
OIL & GAS-- 0.9%
- ----------------
$ 130,000 Oneok, Inc. 5.510% 02-16-08 $ 130,016 5.5%
115,000 Sempra Energy 6.000% 02-01-13 116,978 5.9%
PIPELINES -- 0.5%
- ------------------
$ 120,000 Duke Capital Corp. 7.500% 10-01-09 $ 124,817 7.2%
SEMICONDUCTOR EQUIPMENT & PRODUCTS-- 0.7%
- -----------------------------------------
$ 165,000 Applied Material, Inc. 7.125% 10-15-17 $ 176,713 6.7%
TELECOMMUNICATIONS -- 2.6%
- ---------------------------
$ 125,000 AT&T Wireless Services, Inc. 7.875% 03-01-11 $ 134,504 7.3%
70,000 British Telecom PLC 8.875% 12-15-30 91,872 6.8%
120,000 Deutsche Telekom International Finance Telecom SA 8.000% 06-15-10 127,987 7.5%
120,000 France Telecom SA 7.750% 03-01-11 128,307 7.2%
175,000 Verizon Global Funding Corp. 7.750% 12-01-30 196,588 6.9%
------------
Total Corporate Bonds (identified cost, $4,244,335) $4,182,647
------------
GOVERNMENT INTERESTS - 72.0%
MORTGAGE-BACKED SECURITIES-- 50.8%
- ----------------------------------
$ 301,343 FHLMC Series 1983 Z 6.500% 12-15-23 $ 309,088 6.3%
371,234 FHLMC Series 2044 6.500% 04-15-28 375,703 6.4%
249,670 FHLMC Gold Pool #A32600 5.500% 05-01-35 241,403 5.7%
775,785 FHLMC Gold Pool #A35363 5.000% 07-01-35 729,214 5.3%
448,852 FHLMC Gold Pool #A58218 6.500% 03-01-37 453,603 6.4%
79,962 FHLMC Gold Pool #C01646 6.000% 09-01-33 79,635 6.0%
175,050 FHLMC Gold Pool #C47318 7.000% 09-01-29 182,984 6.7%
606,980 FHLMC Gold Pool #C55780 6.000% 01-01-29 606,282 6.0%
299,009 FHLMC Gold Pool #C91046 6.500% 05-01-27 303,527 6.4%
140,351 FHLMC Gold Pool #D66753 6.000% 10-01-23 139,951 6.0%
20,856 FHLMC Gold Pool #E00903 7.000% 10-01-15 21,524 6.8%
437,895 FHLMC Gold Pool #G01035 6.000% 05-01-29 437,134 6.0%
182,772 FHLMC Gold Pool #G01842 4.500% 06-01-35 166,401 4.9%
146,812 FHLMC Gold Pool #M30297 4.000% 09-01-18 136,671 4.3%
168,537 FHLMC Gold Pool #N30514 5.500% 11-01-28 164,990 5.6%
446,716 FHLMC Gold Pool #P00024 7.000% 09-01-32 457,381 6.8%
69,737 FHLMC Gold Pool #P50031 7.000% 08-01-18 72,374 6.7%
53,631 FHLMC Gold Pool #P50064 7.000% 09-01-30 55,659 6.7%
223,508 FHLMC Pool #1B1291 4.393% (1) 11-01-33 221,461 4.4%
662,902 FHLMC Pool #1G0233 4.987% (1) 05-01-35 656,104 5.1%
46,918 FHLMC Pool #27663 7.000% 06-01-29 48,523 6.8%
153,377 FHLMC Pool #781071 5.185% (1) 11-01-33 150,293 5.3%
122,558 FHLMC Pool #781804 5.067% (1) 07-01-34 119,480 5.2%
62,469 FHLMC Pool #781884 5.143% (1) 08-01-34 61,092 5.3%
146,728 FHLMC Pool #782862 5.008% (1) 11-01-34 144,236 5.1%
180,754 FNMA Pool #555783 4.500% 10-01-33 164,950 4.9%
264,469 FNMA Pool #21618 5.000% 07-01-33 249,162 5.3%
146,720 FNMA Pool #253057 8.000% 12-01-29 155,244 7.6%
63,479 FNMA Pool #254845 4.000% 07-01-13 61,152 4.2%
63,096 FNMA Pool #254863 4.000% 08-01-13 60,759 4.2%
175,151 FNMA Pool #254865 4.500% 09-01-18 166,945 4.7%
472,606 FNMA Pool #254904 5.500% 10-01-33 457,978 5.7%
199,769 FNMA Pool #255958 5.000% 10-01-35 185,626 5.4%
38,639 FNMA Pool #479477 6.000% 01-01-29 38,521 6.0%
39,131 FNMA Pool #489357 6.500% 03-01-29 39,942 6.4%
33,598 FNMA Pool #535332 8.500% 04-01-30 36,091 7.9%
175,968 FNMA Pool #545317 5.500% 11-01-16 174,078 5.6%
233,406 FNMA Pool #545407 5.500% 01-01-32 226,215 5.7%
56,489 FNMA Pool #545782 7.000% 07-01-32 59,083 6.7%
49,709 FNMA Pool #597396 6.500% 09-01-31 50,684 6.4%
224,892 FNMA Pool #709423 4.517%(1) 06-01-33 221,828 4.6%
72,029 FNMA Pool #725866 4.500% 09-01-34 65,640 4.9%
276,893 FNMA Pool #734922 4.500% 09-01-33 252,682 4.9%
190,461 FNMA Pool #738630 5.500% 11-01-33 184,566 5.7%
556,285 FNMA Pool #745467 5.810%(1) 04-01-36 555,275 5.8%
219,798 FNMA Pool #747529 4.500% 10-01-33 200,580 4.9%
297,697 FNMA Pool #753189 4.000% 12-01-33 263,529 4.5%
426,394 FNMA Pool #765218 4.000% 01-01-34 377,455 4.5%
768,391 FNMA Pool #781893 4.500% 11-01-31 704,920 4.9%
273,590 FNMA Pool #807804 5.500% 03-01-35 264,585 5.7%
79,001 FNMA Pool #809888 4.500% 03-01-35 71,936 4.9%
91,783 GNMA Pool #3095 6.500% 06-20-31 93,789 6.4%
240,074 GNMA Pool #374892 7.000% 02-15-24 250,260 6.7%
56,951 GNMA Pool #376400 6.500% 02-15-24 58,087 6.4%
79,908 GNMA Pool #379982 7.000% 02-15-24 83,298 6.7%
231,765 GNMA Pool #393347 7.500% 02-15-27 242,985 7.2%
98,269 GNMA Pool #410081 8.000% 08-15-25 104,209 7.5%
37,274 GNMA Pool #427199 7.000% 12-15-27 38,886 6.7%
31,108 GNMA Pool #436214 6.500% 02-15-13 31,852 6.3%
26,428 GNMA Pool #442996 6.000% 06-15-13 26,674 5.9%
106,187 GNMA Pool #448490 7.500% 03-15-27 111,328 7.2%
55,104 GNMA Pool #458762 6.500% 01-15-28 56,302 6.4%
83,239 GNMA Pool #460726 6.500% 12-15-27 85,024 6.4%
35,539 GNMA Pool #463839 6.000% 05-15-13 35,870 5.9%
16,870 GNMA Pool #488924 6.500% 11-15-28 17,237 6.4%
19,230 GNMA Pool #510706 8.000% 11-15-29 20,415 7.5%
94,393 GNMA Pool #581536 5.500% 06-15-33 91,813 5.7%
204,139 GNMA II Pool #2630 6.500% 08-20-28 208,705 6.4%
62,464 GNMA II Pool #2671 6.000% 11-20-28 62,368 6.0%
9,062 GNMA II Pool #2909 8.000% 04-20-30 9,589 7.6%
24,014 GNMA II Pool #2972 7.500% 09-20-30 25,061 7.2%
9,155 GNMA II Pool #2973 8.000% 09-20-30 9,687 7.6%
U.S. TREASURIES-- 21.2%
- -----------------------
$ 410,000 U.S. Treasury Bond 8.125% 08-15-19 $ 518,586 6.4%
1,055,000 U.S. Treasury Bond 6.125% 11-15-27 1,176,160 5.5%
400,000 U.S. Treasury Note 3.375% 11-15-08 391,625 3.4%
2,345,000 U.S. Treasury Note 5.000% 08-15-11 2,355,993 5.0%
1,156,995 U.S. Treasury Inflation Index Note 2.000% 01-15-14 1,112,253 2.1%
------------
Total Government Interests (identified cost, $19,104,941) $18,842,195
------------
SHORT-TERM INVESTMENTS -- 2.5%
$ 665,000 Federal Home Loan Bank Discount Note 07-12-07 $ 663,962 5.1%
------------
Total Short-term Investments (identified cost, $663,962) -- 2.5% $ 663,962
------------
TOTAL INVESTMENTS (identified cost, $26,831,797) -- 101.1% $26,458,512
OTHER ASSETS, LESS LIABILITIES -- (1.1%) (293,637)
------------
NET ASSETS-- 100.0% $26,164,875
============
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
(1) Adjustable rate security. Rate shown is the rate at period end.
See notes to financial statements
WRIGHT TOTAL RETURN BOND FUND (WTRB)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2007 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments, at value
(identified cost of $26,831,797) (Note 1A) $ 26,458,512
Cash.................................... 97,902
Receivable for investments sold......... 16,622
Receivable for fund shares sold......... 58,928
Interest receivable..................... 215,612
Other assets............................ 24,557
------------
Total assets.......................... $ 26,872,133
------------
LIABILITIES:
Payable for investments purchased....... $ 664,268
Payable for fund shares reacquired...... 2,738
Distributions payable................... 24,464
Payable to affiliate for adviser fees... 490
Payable to affiliate for Trustees' fees. 36
Payable to affiliate for distribution fees 178
Accrued expenses and other liabilities.. 15,084
------------
Total liabilities..................... $ 707,258
------------
NET ASSETS................................ $ 26,164,875
=============
NET ASSETS CONSIST OF:
Paid-in capital......................... $ 29,998,051
Accumulated undistributed net realized loss on
investments (computed on the basis of identified
cost)................................... (3,428,150)
Unrealized depreciation on investments
(computed on the basis of identified cost) (373,285)
Distributions in excess of net
investment income...................... (31,741)
------------
Net assets applicable to outstanding
shares.............................. $26,164,875
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................. 2,168,293
============
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE OF
BENEFICIAL INTEREST..................... $ 12.07
============
See notes to financial statements
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2007 (Unaudited)
- ------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B)
Interest income........................ $ 795,451
------------
Expenses -
Investment adviser fee (Note 3)........ $ 66,222
Administrator fee (Note 3)............. 10,301
Compensation of Trustees who are not employees
of the investment adviser or administrator 9,706
Custodian fee (Note 1C)................ 33,670
Distribution expenses (Note 4)......... 36,790
Transfer and dividend disbursing agent fees 10,261
Printing............................... 1,830
Interest expense....................... 1,149
Shareholder communications............. 810
Audit services......................... 8,999
Legal services......................... 3,092
Registration costs..................... 8,158
Miscellaneous.......................... 1,905
------------
Total expenses........................ $ 192,893
------------
Deduct -
Reduction of custodian fee (Note 1C)... $ (4,495)
Reduction of investment adviser fee (Note 3) (15,910)
Reduction of distribution expenses by
principal underwriter (Note 4)........ (36,790)
------------
Total deductions....................... $ (57,195)
------------
Net expenses.......................... $ 135,698
------------
Net investment income................ $ 659,753
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (174,490)
Change in unrealized depreciation
on investments......................... (307,126)
------------
Net realized and unrealized loss on
investments........................... $ (481,616)
------------
Net increase in net assets from operations $ 178,137
=============
See notes to financial statements
WRIGHT TOTAL RETURN BOND FUND (WTRB)
- -------------------------------------------------------------------------------
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2007 December 31, 2006
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income...................................................... $ 659,753 $ 1,453,692
Net realized loss on investments........................................... (174,490) (647,060)
Change in unrealized appreciation (depreciation) on investments............ (307,126) 193,494
--------------- ---------------
Net increase in net assets resulting from operations..................... $ 178,137 $ 1,000,126
--------------- ---------------
Distributions to shareholders (Note 2) -
From net investment income................................................. $ (684,411) $ (1,629,189)
--------------- ---------------
Total distributions...................................................... $ (684,411) $ (1,629,189)
--------------- ---------------
Net decrease in net assets from fund share transactions (Note 5)............. $ (4,194,570) $ (9,793,330)
--------------- ---------------
Net decrease in net assets............................................... $ (4,700,844) $(10,422,393)
NET ASSETS:
At beginning of period....................................................... 30,865,719 41,288,112
--------------- ---------------
At end of period............................................................. $ 26,164,875 $ 30,865,719
=============== ===============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ (31,741) $ (7,083)
=============== ===============
See notes to financial statements
WRIGHT TOTAL RETURN BOND FUND (WTRB)
- -------------------------------------------------------------------------------
Six Months
Ended June 30 Year Ended December 31,
----------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 2007 2006 2005 2004 2003 2002
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........ $ 12.290 $ 12.430 $ 12.770 $ 12.870 $ 13.010 $ 12.550
--------- --------- --------- --------- --------- ---------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(1) ................ $ 0.273 $ 0.483 $ 0.465 $ 0.453 $ 0.483 $ 0.639
Net realized and unrealized gain (loss).. (0.209) (0.082) (0.271) (0.011) (0.066) 0.461
--------- --------- --------- --------- --------- ---------
Total income from investment operations $ 0.064 $ 0.401 $ 0.194 $ 0.442 $ 0.417 $ 1.100
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Distributions from investment income..... $ (0.284) $ (0.541) $ (0.534) $ (0.542) $ (0.557) $ (0.640)
--------- --------- --------- --------- --------- ---------
Total distributions.................... $ (0.284) $ (0.541) $ (0.534) $ (0.542) $ (0.557) $ (0.640)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.............. $ 12.070 $ 12.290 $ 12.430 $ 12.770 $ 12.870 $ 13.010
========= ========= ========= ========= ========= =========
TOTAL RETURN(2) ............................ 0.51% 3.34% 1.54% 3.52% 3.25% 9.03%
RATIOS/SUPPLEMENTAL DATA(1):
Net assets, end of period (000 omitted).. $ 26,165 $ 30,866 $ 41,288 $ 38,213 $ 42,317 $ 39,404
Ratios (As a percentage of average
daily net assets):
Net expenses............................ 0.96%(3) 0.99% 0.98% 0.96% 0.95% 0.96%
Net expenses after custodian fee reduction 0.92%(3) 0.95% 0.95% 0.95% 0.95% 0.95%
Interest expense.......................... 0.01%(3) -- -- -- -- --
Net investment income................... 4.49%(3) 3.96% 3.66% 3.58% 3.67% 4.92%
Portfolio turnover rate.................. 65% 90% 86% 64% 131% 68%
- --------------------------------------------------------------------------------------------------------------------------------
(1)For the six months ended June 30, 2007 and for the years ended December 31,
2006, 2005, 2004, 2003, and 2002, 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:
2007 2006 2005 2004 2003 2002
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income per share.......... $ 0.250 $ 0.453 $ 0.439 $ 0.429 $ 0.455 $ 0.621
========= ========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses............................... 1.31%(3) 1.23% 1.18% 1.18% 1.17% 1.09%
========= ========= ========= ========= ========= =========
Expenses after custodian fee reduction. 1.28%(3) 1.19% 1.15% 1.17% 1.17% 1.08%
========= ========= ========= ========= ========= =========
Interest expense....................... 0.01%(3) -- -- -- -- --
========== ========== ========== ========== ========== ==========
Net investment income.................. 4.13%(3) 3.72% 3.46% 3.36% 3.46% 4.78%
========= ========= ========= ========= ========= =========
- --------------------------------------------------------------------------------------------------------------------------------
(2)Total return is calculated assuming a purchase at the net asset value on the
first day and a sale at the net asset value on the last day of each period
reported. Dividends and distributions, if any, are assumed to be reinvested
at the net asset value on the reinvestment date.
(3)Annualized.
See notes to financial statements
WRIGHT CURRENT INCOME FUND (WCIF)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - June 30, 2007 (Unaudited)
Face Coupon Maturity Current
Amount Description Rate Date Value Yield
- --------------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 5.1%
- ------------------------------
$ 278,396 Bear Stearns Adjustable Rate Mortgage Trust,
Series 2003-4, Class 3A1 4.955%(1) 07-25-33 $ 270,497 5.1%
796,178 Chase Mortgage Finance Corporation,
Series 2003-S3, Class A16 5.000% 11-25-33 743,307 5.4%
551,252 Countrywide Home Loans,
Series 2006-J1, Class 3A1 6.000% 02-25-36 547,424 6.0%
451,496 Vendee Mortgage Trust, Series 1998-1 2E 7.000% 09-15-27 462,060 6.8%
MORTGAGE-BACKED SECURITIES - 93.8%
- ----------------------------------
$ 49,524 FHLMC Gold Pool #C00548 7.000% 08-01-27 $ 51,203 6.8%
150,256 FHLMC Gold Pool #C00778 7.000% 06-01-29 155,395 6.8%
216,238 FHLMC Gold Pool #C47318 7.000% 09-01-29 226,039 6.7%
120,071 FHLMC Gold Pool #D81642 7.500% 08-01-27 125,685 7.2%
132,124 FHLMC Gold Pool #E00678 6.500% 06-01-14 135,189 6.4%
135,736 FHLMC Gold Pool #E00721 6.500% 07-01-14 138,886 6.4%
145,155 FHLMC Gold Pool #E81704 8.500% 05-01-15 153,611 8.0%
625,991 FHLMC Gold Pool #E88471 7.500% 01-01-17 648,831 7.2%
163,460 FHLMC Gold Pool #E90181 6.500% 06-01-17 166,886 6.4%
909,058 FHLMC Gold Pool #E91228 5.000% 09-01-17 881,964 5.2%
122,970 FHLMC Gold Pool #G00812 6.500% 04-01-26 125,215 6.4%
365,543 FHLMC Gold Pool #G01842 4.500% 06-01-35 332,802 4.9%
194,363 FHLMC Gold Pool #M90767 4.500% 11-01-07 193,424 4.5%
222,409 FHLMC Gold Pool #M90796 4.000% 02-01-08 220,157 4.0%
233,005 FHLMC Gold Pool #M90802 4.000% 03-01-08 230,486 4.0%
491,949 FHLMC Gold Pool #M90941 4.500% 08-01-09 487,167 4.5%
221,706 FHLMC Pool #1B1291 4.393%(1) 11-01-33 219,675 4.4%
557,888 FHLMC Pool #1G0233 5.018% 05-01-35 552,167 5.1%
200,000 FHLMC Pool #2176 OJ 7.000% 08-15-29 204,849 6.8%
149,028 FHLMC Pool #2201 C 8.000% 11-15-29 154,498 7.7%
302,615 FHLMC Pool #2457 PE 6.500% 06-15-32 304,807 6.5%
122,339 FHLMC Pool #765183 5.880%(1) 08-01-24 122,113 5.8%
186,573 FHLMC Pool #D82572 7.000% 09-01-27 192,899 6.8%
434,304 FHLMC Series 15 7.000% 07-25-23 445,022 6.8%
66,333 FNMA Pool #254227 5.000% 02-01-09 66,116 5.0%
22,946 FNMA Pool #254505 5.000% 11-01-09 22,871 5.0%
1,097,868 FNMA Pool #255669 4.500% 02-01-35 999,676 4.9%
590,228 FNMA Pool #255958 5.000% 10-01-35 548,441 5.4%
308,033 FNMA Pool #313953 7.000% 12-01-17 320,556 6.7%
108,500 FNMA Pool #535131 6.000% 03-01-29 108,168 6.0%
162,361 FNMA Pool #535817 7.000% 04-01-31 168,439 6.7%
139,272 FNMA Pool #545133 6.500% 12-01-28 141,664 6.4%
100,248 FNMA Pool #663689 5.000% 01-01-18 97,267 5.2%
523,176 FNMA Pool #673315 5.500% 11-01-32 507,094 5.7%
64,077 FNMA Pool #733750 6.310% 10-01-32 64,752 6.2%
417,214 FNMA Pool #745467 5.810%(1) 04-01-36 416,456 5.8%
319,805 FNMA Pool #745630 5.500% 01-01-29 310,444 5.7%
952,369 FNMA Pool #765218 4.000% 01-01-34 843,062 4.5%
490,387 FNMA Pool #801357 5.500% 08-01-34 475,313 5.7%
849,638 FNMA Pool #809324 4.802%(1) 02-01-35 838,241 4.9%
482,094 FNMA Pool #820972 5.011% 05-01-35 474,472 5.1%
319,169 FNMA Pool #825395 4.849%(1) 07-01-35 317,023 4.9%
477,135 FNMA Pool #871394 7.000% 04-01-21 490,091 6.8%
897,925 FNMA Pool #892522 6.187%(1) 08-01-36 905,567 6.1%
520,954 FNMA Series G93-5, Class Z 6.500% 02-25-23 528,677 6.4%
3,370 GNMA II Pool #1596 9.000% 04-20-21 3,620 8.4%
54,997 GNMA II Pool #2268 7.500% 08-20-26 $ 57,440 7.2%
159,595 GNMA II Pool #2442 6.500% 06-20-27 163,141 6.4%
6,025 GNMA II Pool #2855 8.500% 12-20-29 6,461 7.9%
552,478 GNMA II Pool #3053 6.500% 03-20-31 564,553 6.4%
505,404 GNMA II Pool #3259 5.500% 07-20-32 490,998 5.7%
320,444 GNMA II Pool #3284 5.500% 09-20-32 311,310 5.7%
649,272 GNMA II Pool #3388 4.500% 05-20-33 594,146 4.9%
134,647 GNMA II Pool #3401 4.500% 06-20-33 123,215 4.9%
110,314 GNMA II Pool #3484 3.500% 09-20-33 91,901 4.2%
208,634 GNMA II Pool #3554 4.500% 05-20-34 190,808 4.9%
315,174 GNMA II Pool #3567 4.500% 06-20-34 288,245 4.9%
1,968,623 GNMA II Pool #3734 4.500% 07-20-35 1,798,994 4.9%
2,534,968 GNMA II Pool #3747 5.000% 08-20-35 2,390,312 5.3%
308,138 GNMA II Pool #3920 6.000% 11-20-36 306,611 6.0%
114,724 GNMA II Pool #601135 6.310% 09-20-32 116,182 6.2%
131,983 GNMA II Pool #601255 6.310% 01-20-33 133,543 6.2%
111,933 GNMA II Pool #608120 6.310% 01-20-33 113,256 6.2%
602,038 GNMA II Pool #648541 6.000% 10-20-35 598,443 6.0%
35,845 GNMA II Pool #723 7.500% 01-20-23 37,382 7.2%
2,043 GNMA Pool #176992 8.000% 11-15-16 2,146 7.6%
2,475 GNMA Pool #177784 8.000% 10-15-16 2,600 7.6%
11,787 GNMA Pool #192357 8.000% 04-15-17 12,404 7.6%
16,880 GNMA Pool #194057 8.500% 04-15-17 18,066 7.9%
4,950 GNMA Pool #194287 9.500% 03-15-17 5,371 8.8%
1,407 GNMA Pool #196063 8.500% 03-15-17 1,506 7.9%
7,257 GNMA Pool #211231 8.500% 05-15-17 7,767 7.9%
1,397 GNMA Pool #212601 8.500% 06-15-17 1,496 7.9%
3,153 GNMA Pool #220917 8.500% 04-15-17 3,374 7.9%
7,881 GNMA Pool #223348 10.000% 08-15-18 8,725 9.0%
12,333 GNMA Pool #228308 10.000% 01-15-19 13,689 9.0%
2,857 GNMA Pool #230223 9.500% 04-15-18 3,107 8.7%
479 GNMA Pool #247473 10.000% 09-15-18 494 9.7%
3,886 GNMA Pool #251241 9.500% 06-15-18 4,226 8.7%
4,046 GNMA Pool #260999 9.500% 09-15-18 4,400 8.7%
5,686 GNMA Pool #263439 10.000% 02-15-19 6,312 9.0%
1,459 GNMA Pool #265267 9.500% 08-15-20 1,593 8.7%
1,838 GNMA Pool #266983 10.000% 02-15-19 2,041 9.0%
2,947 GNMA Pool #273690 9.500% 08-15-19 3,212 8.7%
832 GNMA Pool #286556 9.000% 03-15-20 896 8.4%
4,709 GNMA Pool #301366 8.500% 06-15-21 5,068 7.9%
4,810 GNMA Pool #302933 8.500% 06-15-21 5,176 7.9%
11,226 GNMA Pool #308792 9.000% 07-15-21 12,105 8.3%
3,370 GNMA Pool #314222 8.500% 04-15-22 3,631 7.9%
3,645 GNMA Pool #315187 8.000% 06-15-22 3,856 7.6%
12,979 GNMA Pool #315754 8.000% 01-15-22 13,733 7.6%
27,957 GNMA Pool #319441 8.500% 04-15-22 30,122 7.9%
9,033 GNMA Pool #325165 8.000% 06-15-22 9,557 7.6%
14,827 GNMA Pool #335950 8.000% 10-15-22 15,688 7.6%
186,404 GNMA Pool #346987 7.000% 12-15-23 194,311 6.7%
95,611 GNMA Pool #352001 6.500% 12-15-23 97,510 6.4%
34,922 GNMA Pool #352110 7.000% 08-15-23 36,403 6.7%
1,800,319 GNMA Pool #3556 5.500% 05-20-34 1,748,030 5.7%
51,571 GNMA Pool #368238 7.000% 12-15-23 53,758 6.7%
50,323 GNMA Pool #372379 8.000% 10-15-26 53,394 7.5%
60,937 GNMA Pool #396537 7.490% 03-15-25 63,864 7.1%
45,436 GNMA Pool #399726 7.490% 05-15-25 47,619 7.1%
176,755 GNMA Pool #399788 7.490% 09-15-25 185,245 7.1%
30,570 GNMA Pool #399958 7.490% 02-15-27 32,040 7.1%
67,335 GNMA Pool #399964 7.490% 04-15-26 70,573 7.1%
80,132 GNMA Pool #410215 7.500% 12-15-25 84,008 7.2%
11,108 GNMA Pool #414736 7.500% 11-15-25 11,645 7.2%
50,467 GNMA Pool #420707 7.000% 02-15-26 52,651 6.7%
28,999 GNMA Pool #421829 7.500% 04-15-26 30,403 7.2%
18,334 GNMA Pool #431036 8.000% 07-15-26 19,452 7.5%
51,053 GNMA Pool #431612 8.000% 11-15-26 54,168 7.5%
62,513 GNMA Pool #438004 7.490% 11-15-26 65,520 7.1%
11,385 GNMA Pool #442190 8.000% 12-15-26 12,080 7.5%
22,648 GNMA Pool #449176 6.500% 07-15-28 23,140 6.4%
48,357 GNMA Pool #462623 6.500% 03-15-28 49,409 6.4%
343,518 GNMA Pool #471369 5.500% 05-15-33 334,131 5.7%
97,511 GNMA Pool #475149 6.500% 05-15-13 99,842 6.3%
143,181 GNMA Pool #489377 6.375% 03-15-29 145,504 6.3%
136,262 GNMA Pool #524811 6.375% 09-15-29 138,472 6.3%
40,725 GNMA Pool #538314 7.000% 02-15-32 42,454 6.7%
336,706 GNMA Pool #595606 6.000% 11-15-32 336,027 6.0%
48,360 GNMA Pool #602377 4.500% 06-15-18 46,163 4.7%
616,491 GNMA Pool #603250 5.500% 04-15-34 599,450 5.7%
50,079 GNMA Pool #603377 4.500% 01-15-18 47,804 4.7%
939,464 GNMA Pool #608639 5.500% 07-15-24 918,668 5.6%
181,226 GNMA Pool #609452 4.000% 08-15-33 160,385 4.5%
361,901 GNMA Pool #616829 5.500% 01-15-25 357,427 5.6%
483,201 GNMA Pool #624600 6.150% 01-15-34 484,724 6.1%
676,486 GNMA Pool #631623 5.500% 08-15-34 657,787 5.7%
702,006 GNMA Pool #640225 5.500% 04-15-35 682,206 5.7%
149,421 GNMA Pool #640940 5.500% 05-15-35 145,206 5.7%
172,226 GNMA Pool #658267 6.500% 02-15-22 175,622 6.4%
70,532 GNMA Pool #780429 7.500% 09-15-26 73,946 7.2%
229,002 GNMA Pool #780977 7.500% 12-15-28 240,090 7.2%
561,482 GNMA Pool #781120 7.000% 12-15-29 585,508 6.7%
91,419 GNMA Pool #81161 5.500%(1) 11-20-34 91,597 5.5%
1,500,507 GNMA Series 1999-4 6.000% 02-20-29 1,504,757 6.0%
501,142 GNMA Series 2001-4 6.500% 03-20-31 512,678 6.4%
400,000 GNMA Series 2002-40 6.500% 06-20-32 409,777 6.3%
334,738 GNMA Series 2002-45 6.500% 06-20-32 343,134 6.3%
750,000 GNMA Series 2002-47 6.500% 07-16-32 765,398 6.4%
279,278 GNMA Series 2002-7 6.500% 01-20-32 284,798 6.4%
------------
TOTAL INVESTMENTS (identified cost, $38,927,738) -- 98.9% $38,888,348
OTHER ASSETS, LESS LIABILITIES -- 1.1% 433,235
------------
NET ASSETS -- 100.0% $39,321,583
==============
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
(1) Adjustable rate security. Rate shown is rate at period end.
See notes to financia; statements
WRIGHT CURRENT INCOME FUND (WCIF)
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2007 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments, at value
(identified cost of($38,927,738)(Note 1A) $ 38,888,348
Cash.................................... 258,909
Receivable for investments sold......... 1,968,529
Receivable for fund shares sold......... 30,189
Interest receivable..................... 190,872
Other assets............................ 18,103
------------
Total assets.......................... $ 41,354,950
------------
LIABILITIES:
Payable for investments purchased....... $ 1,882,977
Payable for fund shares reacquired...... 80,930
Distributions payable................... 50,493
Payable to affiliate for Trustees' fees. 36
Accrued expenses and other liabilities.. 18,931
------------
Total liabilities..................... $ 2,033,367
------------
NET ASSETS................................ $ 39,321,583
=============
NET ASSETS CONSIST OF:
Paid-in capital......................... $ 40,929,738
Accumulated undistributed net realized loss on
investments (computed on the basis of
identified cost)....................... (1,637,789)
Unrealized depreciation on investments
(computed on the basis of identified cost) (39,390)
Accumulated undistributed net investment
income................................. 69,024
------------
Net assets applicable to outstanding
shares............................... $ 39,321,583
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING........................... 4,200,581
=============
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE OF
BENEFICIAL INTEREST................... $ 9.36
==============
See notes to financial statements
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2007 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B)
Interest income........................ $ 1,124,625
------------
Expenses -
Investment adviser fee (Note 3)........ $ 88,992
Administrator fee (Note 3)............. 17,815
Compensation of Trustees who are not employees
of the investment adviser or administrator 9,712
Custodian fee (Note 1C)................ 31,528
Distribution expenses (Note 4)......... 49,488
Transfer and dividend disbursing agent fees 15,489
Printing............................... 1,858
Interest expense....................... 3,767
Shareholder communications............. 1,010
Audit services......................... 10,960
Legal services......................... 3,202
Registration costs..................... 6,197
Miscellaneous.......................... 1,653
------------
Total expenses........................ $ 241,671
------------
Deduct -
Reduction of custodian fee (Note 1C)... $ (1,428)
Reduction of investment adviser fee (Note 3) (2,725)
Reduction of distribution expenses
by principal underwriter (Note 4)..... (49,488)
------------
Total deductions...................... $ (53,641)
------------
Net expenses.......................... $ 188,030
------------
Net investment income................ $ 936,595
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (125,763)
Change in unrealized depreciation
on investments......................... (465,408)
------------
Net realized and unrealized loss
on investments........................ $ (591,171)
------------
Net increase in net assets from
operations........................... $ 345,424
============
See notes to financial statements
WRIGHT CURRENT INCOME FUND (WCIF)
- -------------------------------------------------------------------------------
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 2007 December 31, 2006
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income...................................................... $ 936,595 $ 1,472,758
Net realized gain (loss) on investments.................................... (125,763) 161,110
Change in unrealized depreciation on investments........................... (465,408) (511,826)
-------------- --------------
Net increase in net assets resulting from operations..................... $ 345,424 $ 1,122,042
-------------- --------------
Distributions to shareholders (Note 2) -
From net investment income................................................. $ (938,789) $ (1,548,362)
From net realized gain..................................................... (36,891) (59,861)
-------------- --------------
Total distributions...................................................... $ (975,680) $ (1,608,223)
-------------- --------------
Net increase (decrease) in net assets from fund share transactions (Note 5) $ (522,571) $ 7,099,679
-------------- --------------
Net increase (decrease) in net assets........................................ $ (1,152,827) $ 6,613,498
NET ASSETS:
At beginning of period....................................................... 40,474,410 33,860,912
-------------- --------------
At end of period............................................................. $ 39,321,583 $ 40,474,410
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS AT END OF PERIOD............................................... $ 69,024 $ 71,218
============== ==============
See notes to financia; statements
WRIGHT CURRENT INCOME FUND (WCIF)
- -------------------------------------------------------------------------------
Six Months
Ended June 30 Year Ended December 31,
---------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 2007 2006 2005 2004 2003 2002
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period........ $ 9.510 $ 9.610 $ 9.890 $ 10.490 $ 10.810 $ 10.580
---------- ---------- ---------- ---------- ---------- ----------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(1) ................ $ 0.222 $ 0.427 $ 0.400 $ 0.447 $ 0.417 $ 0.565
Net realized and unrealized gain (loss).. (0.140) (0.063) (0.230) (0.112) (0.235) 0.231
---------- ---------- ---------- ---------- ---------- ----------
Total income from investment operations $ 0.082 $ 0.364 $ 0.170 $ 0.335 $ 0.182 $ 0.796
---------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
Distributions from investment income..... $ (0.223) $ (0.447) $ (0.430) $ (0.482) $ (0.502) $ (0.555)
Distributions from capital gains......... (0.009) (0.017) (0.020) (0.453) - -
Tax return of capital.................... - - - - - (0.011)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions.................. $ (0.232) $ (0.464) $ (0.450) $ (0.935) $ (0.502) $ (0.566)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period.............. $ 9.360 $ 9.510 $ 9.610 $ 9.890 $ 10.490 $ 10.810
========== ========== ========== ========== ========== ==========
TOTAL RETURN(2) ............................ 0.97% 3.92% 1.76% 3.29% 1.73% 7.70%
RATIOS/SUPPLEMENTAL DATA(1):
Net assets, end of period (000 omitted). $ 39,322 $ 40,474 $ 33,861 $ 35,013 $ 36,332 $ 59,077
Ratios (As a percentage of average
daily net assets):
Net expenses............................ 0.96%(5) 0.96% 0.97% 0.97% 0.95% 0.97%(4)
Net expenses after custodian fee reduction 0.95%(5) 0.95% 0.95% 0.95% 0.95% 0.95%(4)
Interest expense........................ 0.02%(5) 0.02% 0.01% 0.02% 0.01% --
Net investment income................... 4.73%(5) 4.47% 4.12% 4.29% 4.43% 5.28%
Portfolio turnover rate ................. 26% 75% 103% 27% 20% 36%(3)
- --------------------------------------------------------------------------------------------------------------------------------
(1)For the six months ended June 30, 2007 and for the years ended December 31,
2006, 2005, 2004, 2003, and 2002, the operating expenses of the Fund were
reduced by an allocation of expenses to the investment adviser and/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:
2007 2006 2005 2004 2003 2002
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income per share........... $ 0.210 $ 0.391 $ 0.369 $ 0.410 $ 0.401 $ 0.555
========== ========== ========== ========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses............................... 1.22%(5) 1.31% 1.30% 1.28% 1.12% 1.06%(4)
========== ========== ========== ========== ========== ==========
Expenses after custodian fee reduction.... 1.21%(5) 1.30% 1.28% 1.25% 1.12% 1.04%(4)
========== ========== ========== ========== ========== ==========
Interest expense......................... 0.02%(5) 0.02% 0.01% 0.02% 0.01% --
========== ========== ========== ========== ========== ==========
Net investment income..................... 4.47%(5) 4.13% 3.80% 3.99% 4.26% 5.19%
========== ========== ========== ========== ========== ==========
- --------------------------------------------------------------------------------------------------------------------------------
(2)Total return is calculated assuming a purchase at the net asset value on the
first day and a sale at the net asset value on the last day of each period
reported. Dividends and distributions, if any, are assumed to be reinvested
at the net asset value on the reinvestment date.
(3)Represents portfolio turnover rate of the Fund's corresponding portfolio (Note 1).
(4)Includes the Fund's share of its corresponding portfolio's allocated expenses (Note 1).
(5)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 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 (the 1940 Act), as a diversified, open-end, management
investment company. 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, WCIF invested all of its 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 the Fund. Subsequent to December
20, 2002, the Fund invests directly in securities rather than through the
Portfolio and maintains 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 Valuation - 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 fair value.
B. Interest Income - Interest income consists of interest accrued and
amortization of premium or accretion of discount on debt securities.
The income is accrued ratably to the date of maturity on the
investments of the Funds.
C. Expense Reduction - Investors Bank & Trust Company (IBT) serves as
custodian to the Funds. Effective July 2, 2007, the parent company of
IBT was acquired by State Street Corporation. Pursuant to the custodian
agreement, IBT receives a fee reduced by credits which are determined
based on the average daily cash balance the Funds maintain with IBT.
All credit balances, if any, used to reduce a Fund's custodian fees are
reported as a reduction of total expenses on 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, 2006, the Trust, for federal income tax
purposes, had capital loss carryovers of $3,112,804 (WTRB) and
$1,445,202 (WCIF) which will reduce taxable income arising from future
net realized gain on investments, if any, to the extent permitted by
the Code, and thus will reduce the amount of the distribution to
shareholders which would otherwise be necessary to relieve the
respective Fund of any liability for federal income or excise tax.
Pursuant to the Code, such capital loss carryovers will expire as
follows:
12/31 WTRB WCIF
- -------------------------------------------------------------------------------
2007 $ - $273,806
2008 1,244,473 -
2010 508,606 -
2011 - 505,639
2012 - 469,640
2013 270,953 196,117
2014 1,088,772 -
- -------------------------------------------------------------------------------
At December 31, 2006, net capital losses of $23,801 for WTRB and $3,456
for WCIF, attributable to security transactions incurred after October
31, 2006, are treated as arising on the first day of the Fund's taxable
year ending December 31, 2007.
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 income and
expense during the reporting period. Actual results could differ from
those estimates.
F. Other - Investment transactions are accounted for on the date th
investments are purchased or sold.
G. Interim Financial Statements -- The interim financial statements
relating to June 30, 2007 and for the six months then ended have not
been audited by an independent registered public accounting firm, but
in the opinion of the Funds' management reflect all adjustments,
consisting only of normal recurring adjustments, necessary for the fair
presentation of the financial statements.
(2) DISTRIBUTIONS TO SHAREHOLDERS
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 Funds distinguish between distributions on a tax basis and a financial
reporting basis. Accounting principles generally accepted in the United States
of America require that only distributions in excess of tax basis earnings and
profits be reported in the financial statements as a return of capital.
Permanent differences between book and tax accounting relating to distributions
are classified to paid-in capital.
(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, 2007, the
effective annual rate for WCIF and WTRB was 0.45%. Under a written agreement,
Wright and Wright Investors' Service Distributors, Inc. (Note 4), waived a
portion of their advisory fee and/or distribution fees and assumed operating
expenses to the extent necessary to limit each Fund's expense ratios to 0.95%
after custodian fee reductions, if any. The expense limitation is in effect
through April 30, 2008 and may be terminated at any time thereafter. In
addition, effective March 22, 2007, Wright and Wright Investors' Service
Distributors, Inc. have voluntarily agreed to limit the operating expenses of
WTRB to 0.90% after custodian fee reductions. Such voluntary limitation may be
terminated at any time. Accordingly, Wright made a reduction of its investment
adviser fee by $15,910 and $3,751 on behalf of 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 of each Fund, which rate is
reduced as average daily net assets exceed certain levels. For the six months
ended June 30, 2007, the effective annual rate was 0.07% for WTRB and 0.09% 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 1940 Act. 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 and an affiliate of Wright, 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. Pursuant to a
written agreement (Note 3), the Principal Underwriter made a reduction of its
fee by $36,790 and $49,488 for the benefit of WTRB and WCIF, respectively.
In addition, the Trustees have adopted a service plan (the Service Plan)
which allows the Funds to reimburse the Principal Underwriter for payments to
intermediaries for providing account administration and personal and account
maintenance services to their customers who are beneficial owners of each Fund's
shares. The combined amount of service fees payable under the Service Plan and
Rule 12b-1 distributions fees may not exceed 0.25% annually of each Fund's
average daily net assets. For the six months ended June 30, 2007, 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:
For the Six Months Ended Year Ended
June 30, 2007 (Unaudited) December 31, 2006
------------------------- -----------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
Wright Total Return Bond Fund--
Sold................................................. 185,703 $ 2,281,134 483,580 $ 5,863,658
Issued to shareholders in payment of
distributions declared.............................. 42,924 525,691 98,578 1,246,056
Redemptions.......................................... (572,483) (7,001,395) (1,391,653) (16,903,044)
------------ --------------- ------------ ---------------
Net decrease..................................... (343,856) $ (4,194,570) (809,495) $ (9,793,330)
============ =============== ============ ===============
Wright Current Income Fund--
Sold................................................. 434,268 $ 4,125,100 747,630 $ 7,169,560
Issued to shareholders in payment of
distributions declared.............................. 69,965 663,356 108,681 1,028,796
Redemptions.......................................... (560,202) (5,311,027) (1,351,796) (12,808,666)
Issued to Wright U.S. Government Near Term Fund...... - - 1,227,175 11,709,989
------------ --------------- ------------ ---------------
Net increase (decrease).......................... (55,969) $ (522,571) 731,690 $ 7,099,679
============ =============== ============ ===============
(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 (including maturities and paydowns) of investments, other
than short-term obligations, were as follows:
Six Months Ended June 30, 2007
--------------------------------
WTRB WCIF
- ------------------------------------------------------------------------------
Purchases--
Non-U.S. Gov't & Agency
Obligations $ 928,208 $ 495,439
============ ============
U.S. Gov't & Agency
Obligations $17,950,139 $ 9,674,933
=========== ============
Sales--
Non-U.S. Gov't & Agency
Obligations $ 4,449,177 $ 140,159
============ ============
U.S. Gov't & Agency
Obligations $18,687,132 $10,854,023
============ ============
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 2007, as computed on a federal income tax basis,
are as follows:
WTRB WCIF
- -------------------------------------------------------------------------------
Aggregate cost $26,850,682 $38,966,652
=========== ============
Gross unrealized
appreciation $ 113,751 $ 609,267
Gross unrealized
depreciation (505,921) (687,571)
----------- -----------
Net unrealized
appreciation (depreciation) $ (392,170) $ (78,304)
============ ============
(8) LINE OF CREDIT
The Funds participate with other Funds managed by Wright in a committed $10
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
$10 million line of credit, is allocated among the participating funds at the
end of each quarter.
The average borrowings and average interest rate for the six months ended
June 30, 2007 are as follows:
WTRB WCIF
- --------------------------------------------------------------------
Average borrowing $ 8,088 $ 94,552
Average interest rate 6% 6%
- --------------------------------------------------------------------
(9) TRANSFER OF NET ASSETS
Prior to the opening of business on December 9, 2006, the Wright Current
Income Fund (WCIF) acquired the net assets of Wright U.S. Government Near Term
Fund (WNTB) pursuant to an Agreement and Plan of Reorganization dated December
20, 2004. In accordance with the agreement, WCIF issued 1,227,175 shares having
a value of $11,709,989. As a result, WCIF issued 1.028 shares for each share of
WNTB. The transaction was structured for tax purposes to qualify as a tax free
reorganization under the Internal Revenue Code. WNTB's net assets at the date of
the transaction were $11,709,989, including $(88,124) of unrealized
depreciation. Directly after the merger, the combined net assets of WCIF were
$43,266,523 with a net asset value per share of $9.54.
(10) RECENTLY ISSUED ACCOUNTING
PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes - an
interpretation of FASB Statement No. 109". FIN 48 clarifies the accounting for
uncertainty in income taxes recognized in accordance with FASB Statement No.
109, "Accounting for Income Taxes". This interpretation prescribes a recognition
threshold and measurement attribute for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax return. It
also provides guidance on de-recognition, classification, interest and
penalties, accounting in interim periods, disclosure and transition. FIN 48 is
effective during the first required financial reporting period for fiscal years
beginning after December 15, 2006. Management has concluded that as of June 30,
2007, there are no uncertain tax positions that would require financial
statement recognition, de-recognition, or disclosure.
In September 2006, FASB issued Statement of Financial Accounting Standards
No. 157 (FAS 157), "Fair Value Measurements". FAS 157 defines fair value,
establishes a framework for measuring fair value in accordance with generally
accepted accounting principles and expands disclosure about fair value
measurements. FAS 157 is effective for fiscal years beginning after November 15,
2007. Management is currently evaluating the impact the adoption of FAS 157 will
have on the Funds' financial statement disclosures.
BOARD OF TRUSTEES
ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
In evaluating the Investment Advisory Contracts, the Independent Trustees met
separately from the Interested Trustees and reviewed and considered materials
furnished by Wright, including information regarding Wright, its affiliates and
personnel, operations and financial condition. The Independent Trustees
discussed with representatives of Wright the portfolio management and operations
of the funds and the capabilities of Wright to provide advisory and other
services to each fund. The Independent Trustees considered, among other things,
the following:
EQUITY FUNDS AND INCOME FUNDS
- -------------------------------------------------------------------------------
o Whether the advisory arrangements are fair and reasonable relative to
possible alternative arrangements. The Trustees concluded that the
advisory fees paid by the funds are reasonable.
o Whether advisory services are being provided as agreed to. The Trustees
concluded that the services being provided by the adviser are as agreed
to in the advisory contract.
o Whether compensation paid by a Fund to the adviser is fair and
reasonable in relation to the services provided and the charges by
other advisers for similar services. The Trustees concluded that the
compensation paid by the funds to the adviser is in the average range
of compensation charged by other advisers for similar services and is
reasonable.
o Fees and expense ratios compared to similar funds. The Trustees
concluded that the expense ratios of the funds are lower than the
average for similar funds.
o Performance and relationship of fees and performance. The Trustees
concluded that in most cases the performance results of the funds were
at least in the mid-range of similar funds while their expense ratios
were generally lower.
o Analysis of each Fund's profitability to the adviser. The Trustees
concluded that the profitability to the adviser of each fund was
reasonable and not excessive.
o The adviser's financial condition and the overall organization of the
adviser.
o Sales and redemption data. The Trustees reviewed the information which
had been provided to them relating to sales and redemptions and
Wright's marketing strategies to try to increase assets under
management.
o The economic outlook and the general investment outlook in the relevant
investment markets. The Trustees have received a presentation on the
overall economic outlook and investment outlook of both equity and
income markets at each Board meeting.
o The resources devoted to compliance efforts undertaken by the adviser
and the record of compliance with investment policies and restrictions
and with policies on personal securities transactions. The Trustees
have approved and met separately with the Fund's Chief Compliance
Officer.
ADDITIONAL CONSIDERATIONS FOR EQUITY FUNDS
- -------------------------------------------------------------------------------
o The allocation of brokerage and any benefits received by the adviser as
a result of brokerage allocation. The Trustees reviewed the Trading
Analysis included in the material provided in advance of the meeting.
The Independent Trustees' Committee did not consider any single factor as
controlling in their consideration of the renewal of the Investment Advisory
Contracts, nor are the considerations described above all encompassing. Based on
their consideration of all factors which they considered material, and with the
assistance of independent counsel, the Independent Trustees' Committee concluded
that the renewal of the Investment Advisory Contract with its current fee
structure is in the interests of the shareholders.
IMPORTANT NOTICES REGARDING PRIVACY, DELIVERY OF
SHAREHOLDER DOCUMENTS, PORTFOLIO HOLDINGS AND PROXY VOTING
----------------------------------------------------------------------------
WRIGHT MANAGED INVESTMENT FUNDS
WRIGHT INVESTORS' SERVICE, INC.
WRIGHT INVESTORS' SERVICE DISTRIBUTORS, INC.
EATON VANCE MANAGEMENT
PRIVACY POLICY
------------------
Wright is committed to ensuring your financial privacy. Each of the above
financial institutions has the following policy in effect with respect to
nonpublic personal information about its customers:
o The only such information we collect is information received from
customers, through application forms or otherwise, and information
which we necessarily receive in connection with your Wright fund
transactions.
o We will not disclose this information to anyone except as required or
permitted by law. Such disclosure includes that made to other companies
such as transfer agents and their employees and to our employees, in
each case as necessary to service your account.
o We have adopted policies and procedures (including physical, electronic
and procedural safeguards) that are designed to protect the
confidentiality of this information.
For more information about Wright's privacy policies please feel free to
call 1-800-888-9471.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDERS DOCUMENTS
-----------------------------------------------------------------
The Securities and Exchange Commission permits funds to deliver only one
copy of shareholder documents, including prospectuses, proxy statements and
shareholder reports, to fund investors with multiple accounts at the same
residential or post office box address. This practice is often called
"householding" and it helps eliminate duplicate mailings to shareholders.
Wright, or your financial adviser, may household the mailing of your
documents indefinitely unless you instruct Wright, or your financial adviser,
otherwise.
If you would prefer that your Wright documents not be householded, please
contact Wright at 1-800-888-9471, or your financial adviser.
Your instructions that householding not apply to delivery of your Wright
documents will be effective within 30 days of receipt by Wright or your
financial adviser.
PORTFOLIO HOLDINGS
----------------------------
Each Wright Fund will file a schedule of its portfolio holdings on Form N-Q
with the SEC for the first and third quarters of each fiscal year. The Form N-Q
will be available on the Wright website www.wisi.com, by calling Wright at
1-800-888-9471 or in the EDGAR database on the SEC's website at www.sec.gov.
Form N-Q may also be reviewed and copied at the SEC's public reference room in
Washington, D.C. (call 1-800-732-0330 for information on the operation of the
public reference room).
PROXY VOTING POLICIES AND PROCEDURES
-------------------------------------------
From time to time funds are required to vote proxies related to the
securities held by the funds. The Wright Managed Funds vote proxies according to
a set of policies and procedures approved by the Funds' Board. You may obtain a
description of these policies and procedures and information on how the Funds
voted proxies relating to portfolio securities during the most recent 12-month
period ended June 30 without charge, upon request, by calling 1-800-888-9471.
This description is also available on the Securities and Exchange Commissions
website at http://www.sec.gov.
SEMI-ANNUAL REPORT
OFFICERS AND TRUSTEES OF THE FUNDS
Peter M. Donovan, President and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President
James J. Clarke, Trustee
Dorcas R. Hardy, Trustee
Richard E. Taber, Trustee
Janet Sanders, Secretary
Barbara E. Campbell, Treasurer
William J. Austin, Jr., Assistant Treasurer
ADMINISTRATOR
Eaton Vance Management
255 State Street
Boston, Massachusetts 02109
INVESTMENT ADVISER
Wright Investors' Service, Inc.
440 Wheelers Farms Road
Milford, Connecticut 06461
PRINCIPAL UNDERWRITER
Wright Investors' Service Distributors, Inc.
440 Wheelers Farms Road
Milford, Connecticut 06461
(800) 888-9471
e-mail: wright@wisi.com
CUSTODIAN
State Street Bank and Trust Company
200 Clarendon Street
Boston, Massachusetts 02116
TRANSFER AND DIVIDEND DISBURSING AGENT
Citigroup Fund Services, LLC
Two Portland Square
Portland, ME 04101
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of a mutual fund unless
accompanied or preceded by a Fund's current prospectus.
Item 2. CODE OF ETHICS
The registrant has adopted a code of ethics applicable to its Principal
Executive Officer and Principal Financial Officer. The registrant undertakes to
provide a copy of such code of ethics to any person upon request, without
charge, by calling 1-800-888-9471.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT
The registrant's Board has designated James J. Clarke, an independent
trustee, as its audit committee financial expert. Mr. Clarke is the Principal of
Clarke Consulting, a financial management and strategic planning firm.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not required in filing.
Items 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not required in Filing
Item 6. SCHEDULE OF INVESTMENTS
Please see schedule of investments contained in the Report to Stockholders
included under Item 1 of this Form N-CSR.
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not required in Filing.
Item 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not required in Filing
Item 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not required in Filing
Item 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors/trustees.
Item 11. CONTROLS AND PROCEDURES
a) It is the conclusion of the registrant's principal executive officer and
principal financial officer that the effectiveness of the registrant's current
disclosure controls and procedures (such disclosure controls and procedures
having been evaluated within 90 days of the date of this filing) provide
reasonable assurance that the information required to be disclosed by the
registrant has been recorded, processed, summarized and reported within the time
period specified 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 12. EXHIBITS
(a) (1) Registrant's Code of Ethics - Not applicable (please see Item 2).
(a) (2) Treasurer's and President's Section 302 certification.
(b) Combined 906 certification.
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 Equity Trust(On behalf of Wright Selected Blue Chip Equities
- -------------------------------------------------------------------------------
Fund, Wright Major Blue Chip Equities Fund and Wright International Blue Chip
- -------------------------------------------------------------------------------
Equities Fund)
- ---------------
By: /s/ Peter M. Donovan
--------------------
Peter M. Donovan
President
Date: August 17, 2007
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/ Barbara E. Campbell
-------------------------
Barbara E. Campbell
Treasurer
Date: August 20, 2007
By: /s/ Peter M. Donovan
----------------------
Peter M. Donovan
President
Date: August 17, 2007