FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-3668 -------- The Wright Managed Income 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 Income Trust (On behalf of Wright Total Return Bond Fund - ------------------------------------------------------------------------------ and Wright Current Income 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