STATEMENT OF ASSETS AND LIABILITIES
|
As of December 31, 2013
|
|
|
|
|
|
ASSETS:
|
|
|
TRUE
|
|
Investments, at value
|
|
|
|
|
(identified cost $27,610,514) (Note 1A)
|
|
$
|
40,175,694
|
######
|
Receivable for fund shares sold
|
|
|
12,669
|
|
Dividends receivable
|
|
|
27,378
|
|
Prepaid expenses and other assets
|
|
|
16,335
|
|
Total assets
|
|
$
|
40,232,076
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Payable for fund shares reacquired
|
|
$
|
10,685
|
|
Accrued expenses and other liabilities
|
|
|
17,429
|
|
Total liabilities
|
|
$
|
28,114
|
|
NET ASSETS
|
|
$
|
40,203,962
|
|
|
|
|
|
|
NET ASSETS CONSIST OF:
|
|
|
|
|
Paid-in capital
|
|
$
|
25,260,229
|
|
Accumulated net realized gain on investments
|
|
|
2,378,553
|
|
Unrealized appreciation on investments
|
|
|
12,565,180
|
|
Net assets applicable to outstanding shares
|
|
$
|
40,203,962
|
|
|
|
|
|
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
|
|
2,839,850
|
|
|
|
|
|
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
|
$
|
14.16
|
|
|
|
|
|
|
STATEMENT OF OPERATIONS
|
For the Year Ended December 31, 2013
|
|
|
|
|
|
|
|
INVESTMENT INCOME (Note 1C)
|
|
|
TRUE
|
|
|
3E
|
+07
|
Dividend income
|
|
$
|
496,695
|
|
|
|
|
Total investment income
|
|
$
|
496,695
|
|
|
|
|
|
|
|
|
|
Expenses –
|
|
|
|
|
|
|
|
Investment adviser fee (Note 3)
|
|
$
|
221,153
|
|
|
|
|
Administrator fee (Note 3)
|
|
|
44,231
|
|
|
|
|
Trustee expense (Note 3)
|
|
|
14,040
|
|
|
|
|
Custodian fee
|
|
|
3,711
|
|
|
|
|
Accountant fee
|
|
|
38,911
|
|
|
|
|
Distribution expenses (Note 4)
|
|
|
92,147
|
|
|
|
|
Transfer agent fee
|
|
|
28,794
|
|
|
|
|
Printing
|
|
|
131
|
|
|
|
|
Shareholder communications
|
|
|
5,604
|
|
|
|
|
Audit services
|
|
|
17,000
|
|
|
|
|
Legal services
|
|
|
12,979
|
|
|
|
|
Compliance services
|
|
|
6,098
|
|
|
|
|
Registration costs
|
|
|
18,469
|
|
|
|
|
Interest expense (Note 8)
|
|
|
1,162
|
|
|
|
|
Miscellaneous
|
|
|
21,078
|
|
|
|
|
Total expenses
|
|
$
|
525,508
|
|
|
|
|
|
|
|
|
|
Deduct –
|
|
|
|
|
|
|
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
|
$
|
(8,322
|
)
|
|
|
|
Net expenses
|
|
$
|
517,186
|
|
|
|
|
Net investment loss
|
|
$
|
(20,491
|
)
|
|
|
|
|
|
|
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
|
|
|
|
|
Net realized gain on investment transactions
|
|
$
|
5,721,464
|
|
|
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
|
6,436,418
|
|
|
|
|
Net realized and unrealized gain on investments
|
|
$
|
12,157,882
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
12,137,391
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
22
Wright Selected Blue Chip Equities Fund (WSBC)
|
|
|
|
Years Ended
|
STATEMENTS OF CHANGES IN NET ASSETS
|
|
December 31, 2013
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN NET ASSETS:
|
|
|
|
|
|
|
|
|
From operations –
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
$
|
(20,491
|
)
|
|
$
|
87,380
|
|
|
0
|
|
Net realized gain on investment transactions
|
|
|
5,721,464
|
|
|
|
1,739,677
|
|
|
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
|
6,436,418
|
|
|
|
3,290,176
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
12,137,391
|
|
|
$
|
5,117,233
|
|
Distributions to shareholders (Note 2)
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(7,466
|
)
|
|
$
|
(68,336
|
)
|
|
|
|
From net realized capital gains
|
|
|
(4,709,210
|
)
|
|
|
(1,149,678
|
)
|
|
|
|
Total distributions
|
|
$
|
(4,716,676
|
)
|
|
$
|
(1,218,014
|
)
|
Net increase (decrease) in net assets resulting from fund share transactions (Note 6)
|
$
|
2,860,851
|
|
|
$
|
(6,338,582
|
)
|
Net increase (decrease) in net assets
|
|
$
|
10,281,566
|
|
|
$
|
(2,439,363
|
)
|
|
##
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of year
|
|
|
29,922,396
|
|
|
|
32,361,759
|
|
|
|
|
At end of year
|
|
$
|
40,203,962
|
|
|
$
|
29,922,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF YEAR
|
|
$
|
-
|
|
|
$
|
7,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
23
Wright Selected Blue Chip Equities Fund (WSBC)
These financial highlights reflect selected data for a share outstanding throughout each year.
|
|
|
|
|
|
|
Years Ended December 31,
|
FINANCIAL HIGHLIGHTS
|
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
$
|
11.530
|
|
$
|
10.280
|
|
$
|
10.400
|
|
$
|
8.400
|
|
$
|
6.060
|
|
Income (loss) from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
(1)
|
|
|
(0.007
|
)
|
|
0.028
|
|
|
(0.018
|
)
|
|
(0.022
|
)
|
|
0.011
|
|
Net realized and unrealized gain (loss)
|
|
|
4.412
|
|
|
1.616
|
|
|
(0.102
|
)
|
|
2.030
|
|
|
2.329
|
|
|
Total income (loss) from investment operations
|
|
4.405
|
|
|
1.644
|
|
|
(0.120
|
)
|
|
2.008
|
|
|
2.340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
—
|
(2)
|
|
(0.025
|
)
|
|
—
|
|
|
(0.008
|
)
|
|
—
|
|
From net realized gains
|
|
|
(1.775
|
)
|
|
(0.369
|
)
|
—
|
|
|
—
|
|
|
—
|
|
|
Total distributions
|
|
|
(1.775
|
)
|
|
(0.394
|
)
|
|
—
|
|
|
(0.008
|
)
|
|
—
|
|
Net asset value, end of year
|
|
$
|
14.160
|
|
$
|
11.530
|
|
$
|
10.280
|
|
$
|
10.400
|
|
$
|
8.400
|
|
Total Return
(3)
|
|
|
39.82
|
%
|
|
16.02
|
%
|
|
(1.15
|
)%
|
|
23.93
|
%
|
|
38.61
|
%
|
Ratios/Supplemental Data
(4)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000 omitted)
|
|
$40,204
|
|
$29,922
|
|
$32,362
|
|
$28,370
|
|
$16,763
|
|
Ratios (As a percentage of average daily net assets):
|
Net expenses
|
|
|
1.40
|
%
|
1.40
|
%
|
1.40
|
%
|
1.40
|
%
|
1.36
|
%
|
Net expenses after custodian fee reduction
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
1.36
|
%
|
Net investment income (loss)
|
|
|
(0.06
|
)%
|
0.25
|
%
|
(0.17
|
)%
|
(0.24
|
)%
|
0.15
|
%
|
Portfolio turnover rate
|
|
|
76
|
%
|
54
|
%
|
82
|
%
|
60
|
%
|
41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
For the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
|
|
|
|
|
|
|
(1)
|
Computed using average shares outstanding.
|
(2)
|
Less than $0.001 per share.
|
(3)
|
Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date.
|
(4)
|
For each of the years presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income (loss) ratios would have been as follows:
|
|
|
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
|
Ratios (As a percentage of average daily net assets):
|
Expenses
|
|
|
1.43
|
%
|
|
1.48
|
%
|
|
1.46
|
%
|
|
1.79
|
%
|
|
2.15
|
%
|
Expenses after custodian fee reduction
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
2.15
|
%
|
Net investment income (loss)
|
|
|
(0.09
|
)%
|
|
0.17
|
%
|
|
(0.23
|
)%
|
|
(0.63
|
)%
|
|
(0.64
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
24
Wright Major Blue Chip Equities Fund (WMBC)
Portfolio of Investments - As of December 31, 2013
AFA
|
|
Shares
|
|
|
Value
|
|
|
|
|
|
|
|
|
EQUITY INTERESTS - 101.0%
|
|
|
|
|
|
|
CAPITAL GOODS - 12.1%
|
|
|
|
|
|
|
3M Co.
|
|
|
4,280
|
|
|
$
|
600,270
|
|
Cummins, Inc.
|
|
|
1,455
|
|
|
|
205,111
|
|
General Dynamics Corp.
|
|
|
4,000
|
|
|
|
382,200
|
|
Illinois Tool Works, Inc.
|
|
|
4,455
|
|
|
|
374,576
|
|
Rockwell Automation, Inc.
|
|
|
4,940
|
|
|
|
583,711
|
|
|
|
|
|
|
|
$
|
2,145,868
|
|
CONSUMER DURABLES & APPAREL - 2.8%
|
|
|
|
|
|
|
|
|
Mattel, Inc.
|
|
|
10,450
|
|
|
$
|
497,211
|
|
CONSUMER SERVICES - 1.2%
|
|
|
|
|
|
|
|
|
Starbucks Corp.
|
|
|
2,780
|
|
|
$
|
217,924
|
|
DIVERSIFIED FINANCIALS - 10.2%
|
|
|
|
|
|
|
|
|
IntercontinentalExchange Group, Inc.
|
|
|
1,860
|
|
|
$
|
418,351
|
|
JPMorgan Chase & Co.
|
|
|
13,495
|
|
|
|
789,188
|
|
T. Rowe Price Group, Inc.
|
|
|
7,195
|
|
|
|
602,725
|
|
|
|
|
|
|
|
$
|
1,810,264
|
|
ENERGY - 9.1%
|
|
|
|
|
|
|
|
|
Chevron Corp.
|
|
|
5,225
|
|
|
$
|
652,655
|
|
Halliburton Co.
|
|
|
10,685
|
|
|
|
542,264
|
|
HollyFrontier Corp.
|
|
|
3,920
|
|
|
|
194,785
|
|
Murphy Oil Corp.
|
|
|
3,390
|
|
|
|
219,943
|
|
|
|
|
|
|
|
$
|
1,609,647
|
|
FOOD & STAPLES RETAILING - 3.3%
|
|
|
|
|
|
|
|
|
Walgreen Co.
|
|
|
10,000
|
|
|
$
|
574,400
|
|
FOOD, BEVERAGE & TOBACCO - 1.8%
|
|
|
|
|
|
|
|
|
Coca-Cola Co. (The)
|
|
|
3,930
|
|
|
$
|
162,348
|
|
Monster Beverage Corp.*
|
|
|
2,340
|
|
|
|
158,582
|
|
|
|
|
|
|
|
$
|
320,930
|
|
HEALTH CARE EQUIPMENT & SERVICES - 3.7%
|
|
|
|
|
|
|
|
|
Humana, Inc.
|
|
|
880
|
|
|
$
|
90,834
|
|
Stryker Corp.
|
|
|
7,440
|
|
|
|
559,041
|
|
|
|
|
|
|
|
$
|
649,875
|
|
INSURANCE - 7.0%
|
|
|
|
|
|
|
|
|
Aflac, Inc.
|
|
|
8,955
|
|
|
$
|
598,194
|
|
MetLife, Inc.
|
|
|
11,965
|
|
|
|
645,153
|
|
|
|
|
|
|
|
$
|
1,243,347
|
|
MATERIALS - 2.3%
|
|
|
|
|
|
|
|
|
CF Industries Holdings, Inc.
|
|
|
1,645
|
|
|
$
|
383,351
|
|
Monsanto Co.
|
|
|
185
|
|
|
|
21,562
|
|
|
|
|
|
|
|
$
|
404,913
|
|
PHARMACEUTICALS & BIOTECHNOLOGY - 11.8%
|
|
|
|
|
|
|
|
|
Amgen, Inc.
|
|
|
5,595
|
|
|
$
|
638,725
|
|
Bristol-Myers Squibb Co.
|
|
|
7,075
|
|
|
|
376,036
|
|
Gilead Sciences, Inc.*
|
|
|
4,290
|
|
|
|
322,394
|
|
Johnson & Johnson
|
|
|
8,260
|
|
|
|
756,533
|
|
|
|
|
|
|
|
$
|
2,093,688
|
|
|
|
Shares
|
|
|
Value
|
|
RETAILING - 5.2%
|
|
|
|
|
|
|
|
|
Bed Bath & Beyond, Inc.*
|
|
|
3,780
|
|
|
$
|
303,534
|
|
TJX Cos., Inc.
|
|
|
9,530
|
|
|
|
607,347
|
|
|
|
|
|
|
|
$
|
910,881
|
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 3.7%
|
|
|
|
|
|
|
|
|
Intel Corp.
|
|
|
25,275
|
|
|
$
|
656,139
|
|
SOFTWARE & SERVICES - 14.7%
|
|
|
|
|
|
|
|
|
Google, Inc. - Class A*
|
|
|
425
|
|
|
$
|
476,302
|
|
Intuit, Inc.
|
|
|
775
|
|
|
|
59,148
|
|
MasterCard, Inc. - Class A
|
|
|
535
|
|
|
|
446,971
|
|
Microsoft Corp.
|
|
|
22,565
|
|
|
|
844,608
|
|
Oracle Corp.
|
|
|
19,975
|
|
|
|
764,243
|
|
|
|
|
|
|
|
$
|
2,591,272
|
|
TECHNOLOGY HARDWARE & EQUIPMENT - 5.4%
|
|
|
|
|
|
|
|
|
Apple, Inc.
|
|
|
940
|
|
|
$
|
527,443
|
|
Cisco Systems, Inc.
|
|
|
12,820
|
|
|
|
287,809
|
|
QUALCOMM, Inc.
|
|
|
1,900
|
|
|
|
141,075
|
|
|
|
|
|
|
|
$
|
956,327
|
|
TELECOMMUNICATION SERVICES - 3.6%
|
|
|
|
|
|
|
|
|
AT&T, Inc.
|
|
|
17,995
|
|
|
$
|
632,704
|
|
UTILITIES - 3.1%
|
|
|
|
|
|
|
|
|
NextEra Energy, Inc.
|
|
|
6,480
|
|
|
$
|
554,818
|
|
TOTAL EQUITY INTERESTS - 101.0% (identified cost, $14,777,930)
|
|
|
|
|
|
$
|
17,870,208
|
|
TOTAL INVESTMENTS — 101.0% (identified cost, $14,777,930)
|
|
|
|
|
|
$
|
17,870,208
|
|
LIABILITIES, IN EXCESS OF OTHER ASSETS — (1.0)%
|
|
|
|
|
|
|
(178,539
|
)
|
NET ASSETS — 100.0%
|
|
|
|
|
|
$
|
17,691,669
|
|
* — Non-income producing security.
See Notes to Financial Statements.
25
Wright Major Blue Chip Equities Fund (WMBC)
STATEMENT OF ASSETS AND LIABILITIES
|
As of December 31, 2013
|
|
|
|
|
|
ASSETS:
|
|
|
TRUE
|
|
Investments, at value
|
|
|
|
|
(identified cost $14,777,930) (Note 1A)
|
|
$
|
17,870,208
|
######
|
Receivable for fund shares sold
|
|
|
276
|
|
Dividends receivable
|
|
|
6,925
|
|
Prepaid expenses and other assets
|
|
|
14,257
|
|
Total assets
|
|
$
|
17,891,666
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Outstanding line of credit (Note 8)
|
|
$
|
186,670
|
|
Accrued expenses and other liabilities
|
|
|
13,327
|
|
Total liabilities
|
|
$
|
199,997
|
|
NET ASSETS
|
|
$
|
17,691,669
|
|
|
|
|
|
|
NET ASSETS CONSIST OF:
|
|
|
|
|
Paid-in capital
|
|
$
|
18,331,214
|
|
Accumulated net realized loss on investments
|
|
|
(3,736,428
|
)
|
Undistributed net investment income
|
|
|
4,605
|
|
Unrealized appreciation on investments
|
|
|
3,092,278
|
|
Net assets applicable to outstanding shares
|
|
$
|
17,691,669
|
|
|
|
|
|
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
|
|
1,038,913
|
|
|
|
|
|
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
|
$
|
17.03
|
|
|
|
|
|
|
STATEMENT OF OPERATIONS
|
For the Year Ended December 31, 2013
|
|
|
|
|
|
|
|
INVESTMENT INCOME (Note 1C)
|
|
|
TRUE
|
|
|
1E
|
+07
|
Dividend income
|
|
$
|
335,186
|
|
|
|
|
Total investment income
|
|
$
|
335,186
|
|
|
|
|
|
|
|
|
|
Expenses –
|
|
|
|
|
|
|
|
Investment adviser fee (Note 3)
|
|
$
|
98,020
|
|
|
|
|
Administrator fee (Note 3)
|
|
|
19,604
|
|
|
|
|
Trustee expense (Note 3)
|
|
|
14,040
|
|
|
|
|
Custodian fee
|
|
|
5,000
|
|
|
|
|
Accountant fee
|
|
|
37,290
|
|
|
|
|
Distribution expenses (Note 4)
|
|
|
40,842
|
|
|
|
|
Transfer agent fee
|
|
|
25,575
|
|
|
|
|
Printing
|
|
|
59
|
|
|
|
|
Shareholder communications
|
|
|
4,732
|
|
|
|
|
Audit services
|
|
|
17,000
|
|
|
|
|
Legal services
|
|
|
4,328
|
|
|
|
|
Compliance services
|
|
|
5,489
|
|
|
|
|
Registration costs
|
|
|
18,383
|
|
|
|
|
Interest expense (Note 8)
|
|
|
607
|
|
|
|
|
Miscellaneous
|
|
|
14,590
|
|
|
|
|
Total expenses
|
|
$
|
305,559
|
|
|
|
|
|
|
|
|
|
Deduct –
|
|
|
|
|
|
|
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
|
$
|
(76,238
|
)
|
|
|
|
Net expenses
|
|
$
|
229,321
|
|
|
|
|
Net investment income
|
|
$
|
105,865
|
|
|
|
|
|
|
|
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
|
|
|
|
|
Net realized gain on investment transactions
|
|
$
|
1,526,891
|
|
|
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
|
3,279,155
|
|
|
|
|
Net realized and unrealized gain on investments
|
|
$
|
4,806,046
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
4,911,911
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
26
Wright Major Blue Chip Equities Fund (WMBC)
|
|
|
|
Years Ended
|
STATEMENTS OF CHANGES IN NET ASSETS
|
|
December 31, 2013
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN NET ASSETS:
|
|
|
|
|
|
|
|
|
From operations –
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
105,865
|
|
|
$
|
114,040
|
|
|
0
|
|
Net realized gain (loss) on investment transactions
|
|
|
1,526,891
|
|
|
|
(39,296
|
)
|
|
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
|
3,279,155
|
|
|
|
746,759
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
4,911,911
|
|
|
$
|
821,503
|
|
Distributions to shareholders (Note 2)
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(103,923
|
)
|
|
$
|
(111,377
|
)
|
|
|
|
Total distributions
|
|
$
|
(103,923
|
)
|
|
$
|
(111,377
|
)
|
Net decrease in net assets resulting from fund share transactions (Note 6)
|
|
$
|
(2,675,499
|
)
|
|
$
|
(4,071,909
|
)
|
Net increase (decrease) in net assets
|
|
$
|
2,132,489
|
|
|
$
|
(3,361,783
|
)
|
|
##
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of year
|
|
|
15,559,180
|
|
|
|
18,920,963
|
|
|
|
|
At end of year
|
|
$
|
17,691,669
|
|
|
$
|
15,559,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF YEAR
|
|
$
|
4,605
|
|
|
$
|
2,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
27
Wright Major Blue Chip Equities Fund (WMBC)
These financial highlights reflect selected data for a share outstanding throughout each year.
|
|
|
|
|
|
|
Years Ended December 31,
|
FINANCIAL HIGHLIGHTS
|
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
$
|
12.690
|
|
$
|
12.260
|
|
$
|
12.250
|
|
$
|
10.870
|
|
$
|
9.340
|
|
Income (loss) from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
(1)
|
|
|
0.096
|
|
|
0.082
|
|
|
(0.012
|
)
|
|
0.044
|
|
|
0.099
|
|
Net realized and unrealized gain (loss)
|
|
|
4.344
|
|
|
0.437
|
|
|
0.022
|
|
|
1.389
|
|
|
1.564
|
|
|
Total income from investment operations
|
|
4.440
|
|
|
0.519
|
|
|
0.010
|
|
|
1.433
|
|
|
1.663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.100
|
)
|
|
(0.089
|
)
|
|
—
|
|
|
(0.053
|
)
|
|
(0.133
|
)
|
Net asset value, end of year
|
|
$
|
17.030
|
|
$
|
12.690
|
|
$
|
12.260
|
|
$
|
12.250
|
|
$
|
10.870
|
|
Total Return
(2)
|
|
|
35.03
|
%
|
|
4.23
|
%
|
|
0.08
|
%
|
|
13.19
|
%
|
|
17.83
|
%
|
Ratios/Supplemental Data
(3)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000 omitted)
|
|
$17,692
|
|
$15,559
|
|
$18,921
|
|
$21,676
|
|
$27,337
|
|
Ratios (As a percentage of average daily net assets):
|
Net expenses
|
|
|
1.40
|
%
|
1.40
|
%
|
1.40
|
%
|
1.41
|
%
|
1.36
|
%
|
Net expenses after custodian fee reduction
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
1.36
|
%
|
Net investment income (loss)
|
|
|
0.65
|
%
|
0.64
|
%
|
(0.09
|
)%
|
0.39
|
%
|
1.06
|
%
|
Portfolio turnover rate
|
|
|
64
|
%
|
76
|
%
|
154
|
%
|
68
|
%
|
69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
For the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
|
|
|
|
|
|
|
(1)
|
Computed using average shares outstanding.
|
(2)
|
Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date.
|
(3)
|
For each of the years presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income (loss) ratios would have been as follows:
|
|
|
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
|
Ratios (As a percentage of average daily net assets):
|
Expenses
|
|
|
1.87
|
%
|
|
1.84
|
%
|
|
1.70
|
%
|
|
1.68
|
%
|
|
1.55
|
%
|
Expenses after custodian fee reduction
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
1.55
|
%
|
Net investment income (loss)
|
|
|
0.17
|
%
|
|
0.20
|
%
|
|
(0.39
|
)%
|
|
0.13
|
%
|
|
0.86
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
28
Wright International Blue Chip Equities Fund (WIBC)
Portfolio of Investments - As of December 31, 2013
AFA
|
|
Shares
|
|
|
Value
|
|
EQUITY INTERESTS - 97.7%
|
|
|
|
|
|
|
AUSTRALIA - 3.4%
|
|
|
|
|
|
|
Australia & New Zealand Banking Group, Ltd.
|
|
|
11,003
|
|
|
$
|
317,267
|
|
Commonwealth Bank of Australia
|
|
|
5,400
|
|
|
|
375,860
|
|
CSL, Ltd.
|
|
|
2,434
|
|
|
|
150,166
|
|
Flight Centre Travel Group, Ltd.
|
|
|
3,615
|
|
|
|
153,784
|
|
Rio Tinto, Ltd.
|
|
|
1,333
|
|
|
|
81,309
|
|
|
|
|
|
|
|
$
|
1,078,386
|
|
AUSTRIA - 0.9%
|
|
|
|
|
|
|
|
|
OMV AG
|
|
|
6,002
|
|
|
$
|
287,729
|
|
CANADA - 3.5%
|
|
|
|
|
|
|
|
|
Agrium, Inc.
|
|
|
3,482
|
|
|
$
|
318,443
|
|
Manulife Financial Corp.
|
|
|
8,194
|
|
|
|
161,644
|
|
Toronto-Dominion Bank (The)
|
|
|
6,918
|
|
|
|
651,822
|
|
|
|
|
|
|
|
$
|
1,131,909
|
|
DENMARK - 1.1%
|
|
|
|
|
|
|
|
|
AP Moeller - Maersk A/S - Class B
|
|
|
20
|
|
|
$
|
217,395
|
|
Novo Nordisk A/S - Class B
|
|
|
812
|
|
|
|
149,079
|
|
|
|
|
|
|
|
$
|
366,474
|
|
FRANCE - 12.0%
|
|
|
|
|
|
|
|
|
Alcatel-Lucent*
|
|
|
47,735
|
|
|
$
|
214,299
|
|
AtoS
|
|
|
1,852
|
|
|
|
167,894
|
|
AXA SA
|
|
|
7,981
|
|
|
|
222,258
|
|
BNP Paribas SA
|
|
|
8,943
|
|
|
|
698,098
|
|
Cie Generale des Etablissements Michelin
|
|
|
2,600
|
|
|
|
276,761
|
|
Danone
|
|
|
1,883
|
|
|
|
135,753
|
|
Kering
|
|
|
537
|
|
|
|
113,695
|
|
Orange SA
|
|
|
17,542
|
|
|
|
217,548
|
|
Publicis Groupe SA
|
|
|
1,290
|
|
|
|
118,225
|
|
Rubis SCA
|
|
|
1,864
|
|
|
|
118,241
|
|
Safran SA
|
|
|
2,324
|
|
|
|
161,751
|
|
Sanofi
|
|
|
4,220
|
|
|
|
448,449
|
|
Technip SA
|
|
|
997
|
|
|
|
95,975
|
|
Total SA
|
|
|
10,498
|
|
|
|
644,158
|
|
Veolia Environnement SA
|
|
|
8,727
|
|
|
|
142,561
|
|
Vivendi SA
|
|
|
2,677
|
|
|
|
70,658
|
|
|
|
|
|
|
|
$
|
3,846,324
|
|
GERMANY - 13.1%
|
|
|
|
|
|
|
|
|
Allianz SE
|
|
|
1,457
|
|
|
$
|
261,700
|
|
BASF SE
|
|
|
9,181
|
|
|
|
980,322
|
|
Bayer AG
|
|
|
2,302
|
|
|
|
323,389
|
|
Bayerische Motoren Werke AG
|
|
|
2,802
|
|
|
|
329,036
|
|
Continental AG
|
|
|
1,209
|
|
|
|
265,551
|
|
Daimler AG
|
|
|
4,057
|
|
|
|
351,632
|
|
Deutsche Lufthansa AG*
|
|
|
13,379
|
|
|
|
284,277
|
|
Muenchener Rueckversicherungs AG - Class R
|
|
|
1,447
|
|
|
|
319,322
|
|
OSRAM Licht AG*
|
|
|
2,048
|
|
|
|
115,704
|
|
SAP AG
|
|
|
1,825
|
|
|
|
156,695
|
|
Siemens AG
|
|
|
1,959
|
|
|
|
268,024
|
|
Volkswagen AG
|
|
|
2,002
|
|
|
|
543,179
|
|
|
|
|
|
|
|
$
|
4,198,831
|
|
|
|
Shares
|
|
|
Value
|
|
HONG KONG - 1.5%
|
|
|
|
|
|
|
|
|
Cheung Kong Holdings, Ltd.
|
|
|
30,000
|
|
|
$
|
473,577
|
|
IRELAND - 0.7%
|
|
|
|
|
|
|
|
|
Ryanair Holdings PLC*
|
|
|
24,373
|
|
|
$
|
209,905
|
|
ITALY - 1.6%
|
|
|
|
|
|
|
|
|
Enel SpA
|
|
|
32,942
|
|
|
$
|
144,075
|
|
Eni SpA (Azioni Ordinarie)
|
|
|
15,545
|
|
|
|
374,640
|
|
|
|
|
|
|
|
$
|
518,715
|
|
JAPAN - 21.5%
|
|
|
|
|
|
|
|
|
Acom Co., Ltd.*
|
|
|
40,100
|
|
|
$
|
136,204
|
|
Adastria Holdings Co., Ltd.
|
|
|
2,800
|
|
|
|
101,365
|
|
ADEKA Corp.
|
|
|
7,600
|
|
|
|
83,733
|
|
Aiful Corp.*
|
|
|
23,800
|
|
|
|
99,634
|
|
Asics Corp.
|
|
|
7,500
|
|
|
|
128,086
|
|
Bridgestone Corp.
|
|
|
5,700
|
|
|
|
215,841
|
|
Central Japan Railway Co.
|
|
|
2,191
|
|
|
|
258,071
|
|
Daito Trust Construction Co., Ltd.
|
|
|
2,500
|
|
|
|
233,814
|
|
Daiwa House Industry Co., Ltd.
|
|
|
7,000
|
|
|
|
135,531
|
|
Daiwa Securities Group, Inc.
|
|
|
40,000
|
|
|
|
399,600
|
|
ITOCHU Corp.
|
|
|
45,300
|
|
|
|
559,866
|
|
KDDI Corp.
|
|
|
13,900
|
|
|
|
855,649
|
|
Kirin Holdings Co., Ltd.
|
|
|
8,000
|
|
|
|
115,161
|
|
Maeda Road Construction Co., Ltd.
|
|
|
8,000
|
|
|
|
131,450
|
|
Mazda Motor Corp.*
|
|
|
42,000
|
|
|
|
217,383
|
|
Meitec Corp.
|
|
|
5,500
|
|
|
|
149,032
|
|
Murata Manufacturing Co., Ltd.
|
|
|
1,000
|
|
|
|
88,864
|
|
NHK Spring Co., Ltd.
|
|
|
11,100
|
|
|
|
125,252
|
|
Nippon Telegraph & Telephone Corp.
|
|
|
3,900
|
|
|
|
210,019
|
|
Olympus Corp.*
|
|
|
4,300
|
|
|
|
136,235
|
|
Omron Corp.
|
|
|
3,600
|
|
|
|
159,098
|
|
ORIX Corp.
|
|
|
17,500
|
|
|
|
307,526
|
|
Rohm Co. Ltd,
|
|
|
2,400
|
|
|
|
116,912
|
|
Shimamura Co., Ltd.
|
|
|
1,100
|
|
|
|
103,192
|
|
Shionogi & Co., Ltd.
|
|
|
3,300
|
|
|
|
71,586
|
|
SoftBank Corp.
|
|
|
2,600
|
|
|
|
227,582
|
|
Sony Corp.
|
|
|
3,700
|
|
|
|
64,280
|
|
Sumitomo Corp.
|
|
|
35,700
|
|
|
|
448,691
|
|
Sumitomo Mitsui Trust Holdings, Inc.
|
|
|
60,338
|
|
|
|
318,037
|
|
Sumitomo Realty & Development Co., Ltd.
|
|
|
2,000
|
|
|
|
99,520
|
|
Sumitomo Rubber Industries, Ltd.
|
|
|
10,900
|
|
|
|
154,936
|
|
Terumo Corp.
|
|
|
1,600
|
|
|
|
77,180
|
|
Toyota Motor Corp.
|
|
|
5,900
|
|
|
|
360,382
|
|
|
|
|
|
|
|
$
|
6,889,712
|
|
LUXEMBOURG - 0.4%
|
|
|
|
|
|
|
|
|
Tenaris SA
|
|
|
5,524
|
|
|
$
|
120,875
|
|
NETHERLANDS - 1.4%
|
|
|
|
|
|
|
|
|
Koninklijke Boskalis Westminster NV
|
|
|
4,980
|
|
|
$
|
263,542
|
|
Koninklijke DSM NV
|
|
|
2,446
|
|
|
|
192,656
|
|
|
|
|
|
|
|
$
|
456,198
|
|
NORWAY - 1.5%
|
|
|
|
|
|
|
|
|
Telenor ASA
|
|
|
6,971
|
|
|
$
|
166,150
|
|
Yara International ASA
|
|
|
7,463
|
|
|
|
321,063
|
|
|
|
|
|
|
|
$
|
487,213
|
|
See Notes to Financial Statements.
29
Wright International Blue Chip Equities Fund (WIBC)
Portfolio of Investments - As of December 31, 2013
|
|
Shares
|
|
|
Value
|
|
SPAIN - 2.8%
|
|
|
|
|
|
|
|
|
Enagas SA
|
|
|
3,353
|
|
|
$
|
87,762
|
|
Gas Natural SDG SA
|
|
|
14,596
|
|
|
|
376,004
|
|
Iberdrola SA
|
|
|
34,339
|
|
|
|
219,316
|
|
Repsol SA
|
|
|
8,535
|
|
|
|
215,458
|
|
|
|
|
|
|
|
$
|
898,540
|
|
SWEDEN - 0.3%
|
|
|
|
|
|
|
|
|
TeliaSonera AB
|
|
|
12,135
|
|
|
$
|
101,179
|
|
SWITZERLAND - 11.7%
|
|
|
|
|
|
|
|
|
Actelion, Ltd.*
|
|
|
4,422
|
|
|
$
|
374,653
|
|
Credit Suisse Group AG
|
|
|
12,720
|
|
|
|
390,031
|
|
Nestle SA
|
|
|
12,530
|
|
|
|
920,008
|
|
Novartis AG
|
|
|
4,277
|
|
|
|
342,410
|
|
Roche Holding AG
|
|
|
555
|
|
|
|
155,514
|
|
Swatch Group AG (The)
|
|
|
3,050
|
|
|
|
344,319
|
|
Swiss Re AG
|
|
|
9,564
|
|
|
|
882,359
|
|
Wolseley PLC
|
|
|
3,197
|
|
|
|
181,355
|
|
Zurich Insurance Group AG (Inhaberktie)
|
|
|
583
|
|
|
|
169,456
|
|
|
|
|
|
|
|
$
|
3,760,105
|
|
UNITED KINGDOM - 20.3%
|
|
|
|
|
|
|
|
|
AstraZeneca PLC
|
|
|
16,017
|
|
|
$
|
948,248
|
|
Aviva PLC
|
|
|
57,546
|
|
|
|
428,611
|
|
BAE Systems PLC
|
|
|
31,932
|
|
|
|
230,060
|
|
BBA Aviation PLC
|
|
|
18,974
|
|
|
|
100,751
|
|
BHP Billiton PLC
|
|
|
13,376
|
|
|
|
414,058
|
|
BP PLC
|
|
|
46,929
|
|
|
|
379,342
|
|
GlaxoSmithKline PLC
|
|
|
17,019
|
|
|
|
454,245
|
|
ITV PLC
|
|
|
43,111
|
|
|
|
138,521
|
|
Legal & General Group PLC
|
|
|
299,187
|
|
|
|
1,103,541
|
|
Lloyds Banking Group PLC*
|
|
|
181,990
|
|
|
|
237,760
|
|
Rio Tinto PLC
|
|
|
3,808
|
|
|
|
215,037
|
|
Rolls-Royce Holdings PLC
|
|
|
36,192
|
|
|
|
764,273
|
|
Royal Dutch Shell PLC - Class B
|
|
|
5,710
|
|
|
|
215,624
|
|
Vodafone Group PLC
|
|
|
174,765
|
|
|
|
686,007
|
|
WPP PLC
|
|
|
8,902
|
|
|
|
203,466
|
|
|
|
|
|
|
|
$
|
6,519,544
|
|
TOTAL EQUITY INTERESTS - 97.7% (identified cost, $22,466,722)
|
|
|
|
|
|
$
|
31,345,216
|
|
SHORT-TERM INVESTMENTS - 1.9%
|
|
|
|
|
|
|
|
|
Fidelity Government Money Market Fund, 0.01% (1)
|
|
|
594,716
|
|
|
$
|
594,716
|
|
TOTAL SHORT-TERM INVESTMENTS - 1.9% (identified cost, $594,716)
|
|
|
|
|
|
$
|
594,716
|
|
TOTAL INVESTMENTS — 99.6% (identified cost, $23,061,438)
|
|
|
|
|
|
$
|
31,939,932
|
|
OTHER ASSETS, IN EXCESS OF LIABILITIES — 0.4%
|
|
|
|
|
|
|
127,036
|
|
NET ASSETS — 100.0%
|
|
|
|
|
|
$
|
32,066,968
|
|
PLC — Public Limited Company
*
|
Non-income producing security.
|
(1)
|
Variable rate security. Rate presented is as of December 31, 2013.
|
See Notes to Financial Statements.
30
Wright International Blue Chip Equities Fund (WIBC)
STATEMENT OF ASSETS AND LIABILITIES
|
As of December 31, 2013
|
|
|
|
|
|
ASSETS:
|
|
|
TRUE
|
|
Investments, at value
|
|
|
|
|
(identified cost $23,061,438) (Note 1A)
|
|
$
|
31,939,932
|
######
|
Foreign currency, at value
|
|
|
|
|
(identified cost $20,871) (Note 1A)
|
|
|
21,206
|
######
|
Receivable for fund shares sold
|
|
|
179
|
|
Dividends receivable
|
|
|
27,456
|
|
Tax reclaims receivable
|
|
|
92,567
|
|
Prepaid expenses and other assets
|
|
|
15,665
|
|
Total assets
|
|
$
|
32,097,005
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Accrued expenses and other liabilities
|
|
|
30,037
|
|
Total liabilities
|
|
$
|
30,037
|
|
NET ASSETS
|
|
$
|
32,066,968
|
|
|
|
|
|
|
NET ASSETS CONSIST OF:
|
|
|
|
|
Paid-in capital
|
|
$
|
75,747,722
|
|
Accumulated net realized loss on investments and foreign currency
|
|
|
(52,170,126
|
)
|
Distributions in excess of net investment income
|
|
|
(391,941
|
)
|
Unrealized appreciation on investments and foreign currency
|
|
|
8,881,313
|
|
Net assets applicable to outstanding shares
|
|
$
|
32,066,968
|
|
|
|
|
|
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
|
|
1,969,969
|
|
|
|
|
|
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST*
|
|
$
|
16.28
|
|
|
|
|
|
|
* Shares redeemed or exchanged within three months of purchase are charged a 2.00% redemption fee.
|
STATEMENT OF OPERATIONS
|
For the Year Ended December 31, 2013
|
|
|
|
|
|
|
|
INVESTMENT INCOME (Note 1C)
|
|
|
TRUE
|
|
|
2E
|
+07
|
Dividend income (net of foreign taxes $144,367)
|
|
$
|
1,075,184
|
|
|
|
|
Total investment income
|
|
$
|
1,075,184
|
|
|
|
|
|
|
|
|
|
Expenses –
|
|
|
|
|
|
|
|
Investment adviser fee (Note 3)
|
|
$
|
251,239
|
|
|
|
|
Administrator fee (Note 3)
|
|
|
53,388
|
|
|
|
|
Trustee expense (Note 3)
|
|
|
14,040
|
|
|
|
|
Custodian fee
|
|
|
35,780
|
|
|
|
|
Accountant fee
|
|
|
62,477
|
|
|
|
|
Distribution expenses (Note 4)
|
|
|
78,512
|
|
|
|
|
Transfer agent fee
|
|
|
45,538
|
|
|
|
|
Printing
|
|
|
118
|
|
|
|
|
Shareholder communications
|
|
|
5,614
|
|
|
|
|
Audit services
|
|
|
17,000
|
|
|
|
|
Legal services
|
|
|
8,236
|
|
|
|
|
Compliance services
|
|
|
5,938
|
|
|
|
|
Registration costs
|
|
|
18,464
|
|
|
|
|
Interest expense (Note 8)
|
|
|
1,293
|
|
|
|
|
Miscellaneous
|
|
|
34,821
|
|
|
|
|
Total expenses
|
|
$
|
632,458
|
|
|
|
|
|
|
|
|
|
Deduct –
|
|
|
|
|
|
|
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
|
$
|
(50,173
|
)
|
|
|
|
Net expenses
|
|
$
|
582,285
|
|
|
|
|
Net investment income
|
|
$
|
492,899
|
|
|
|
|
|
|
|
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
|
|
Net realized gain (loss) –
|
|
|
|
|
|
|
|
Investment transactions
|
|
$
|
2,440,619
|
|
|
|
|
Foreign currency transactions
|
|
|
(9,797
|
)
|
|
|
|
Net realized gain
|
|
$
|
2,430,822
|
|
|
|
|
|
|
|
|
|
Change in unrealized appreciation (depreciation) –
|
|
|
|
|
|
|
|
Investments
|
|
$
|
2,593,704
|
|
|
|
|
Foreign currency translations
|
|
|
4,149
|
|
|
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
$
|
2,597,853
|
|
|
|
|
Net realized and unrealized gain on investments and foreign currency translations
|
|
$
|
5,028,675
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
5,521,574
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
31
Wright International Blue Chip Equities Fund (WIBC)
|
|
|
Years Ended
|
|
STATEMENTS OF CHANGES IN NET ASSETS
|
|
December 31, 2013
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN NET ASSETS:
|
|
|
|
|
|
|
|
|
|
From operations –
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
492,899
|
|
|
$
|
600,622
|
|
|
-13073
|
Net realized gain (loss) on investment and foreign currency transactions
|
|
|
2,430,822
|
|
|
|
(1,566,708
|
)
|
|
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations
|
2,597,853
|
|
|
|
5,386,110
|
|
|
|
Net increase in net assets from operations
|
|
$
|
5,521,574
|
|
|
$
|
4,420,024
|
|
|
Distributions to shareholders (Note 2)
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(1,049,112
|
)
|
|
$
|
(631,283
|
)
|
|
|
Total distributions
|
|
$
|
(1,049,112
|
)
|
|
$
|
(631,283
|
)
|
|
Net decrease in net assets resulting from fund share transactions (Note 6)
|
|
$
|
(5,661,248
|
)
|
|
$
|
(4,782,584
|
)
|
|
Net decrease in net assets
|
|
$
|
(1,188,786
|
)
|
|
$
|
(993,843
|
)
|
|
##
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS:
|
|
|
|
|
|
|
|
|
|
|
At beginning of year
|
|
|
33,255,754
|
|
|
|
34,249,597
|
|
|
|
At end of year
|
|
$
|
32,066,968
|
|
|
$
|
33,255,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF YEAR
|
|
$
|
(391,941
|
)
|
|
$
|
25,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
32
Wright International Blue Chip Equities Fund (WIBC)
These financial highlights reflect selected data for a share outstanding throughout each year.
|
|
|
|
|
|
|
Years Ended December 31,
|
FINANCIAL HIGHLIGHTS
|
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
$
|
14.120
|
|
$
|
12.580
|
|
$
|
14.860
|
|
$
|
14.460
|
|
$
|
10.810
|
|
Income (loss) from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
(1)
|
|
|
0.236
|
|
|
0.244
|
|
|
0.224
|
|
|
0.170
|
|
|
0.208
|
|
Net realized and unrealized gain (loss)
|
|
|
2.480
|
|
|
1.567
|
|
|
(2.256
|
)
|
|
0.640
|
|
|
3.442
|
|
|
Total income (loss) from investment operations
|
|
2.716
|
|
|
1.811
|
|
|
(2.032
|
)
|
|
0.810
|
|
|
3.650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.556
|
)
|
|
(0.272
|
)
|
|
(0.248
|
)
|
|
(0.410
|
)
|
|
—
|
|
Redemption Fees
(1)
|
|
|
—
|
(2)
|
|
0.001
|
|
|
—
|
(2)
|
|
—
|
(2)
|
|
—
|
|
#
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year
|
|
$
|
16.280
|
|
$
|
14.120
|
|
$
|
12.580
|
|
$
|
14.860
|
|
$
|
14.460
|
|
Total Return
(3)
|
|
|
19.46
|
%
|
|
14.45
|
%
|
|
(13.65
|
)%
|
|
5.76
|
%
|
|
33.77
|
%
|
Ratios/Supplemental Data
(4)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000 omitted)
|
|
$32,067
|
|
$33,256
|
|
$34,250
|
|
$49,994
|
|
$68,839
|
|
Ratios (As a percentage of average daily net assets):
|
Net expenses
|
|
|
1.85
|
%
|
1.85
|
%
|
1.78
|
%
|
1.74
|
%
|
1.63
|
%
|
Net expenses after custodian fee reduction
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
1.63
|
%
|
Net investment income
|
|
|
1.57
|
%
|
1.84
|
%
|
1.56
|
%
|
1.23
|
%
|
1.75
|
%
|
Portfolio turnover rate
|
|
|
45
|
%
|
58
|
%
|
50
|
%
|
92
|
%
|
63
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
For the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
|
|
|
|
|
|
|
(1)
|
Computed using average shares outstanding.
|
(2)
|
Less than $0.001 per share.
|
(3)
|
Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date.
|
(4)
|
For the years ended December 31, 2013, 2012 and 2010, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income ratios would have been as follows:
|
|
|
|
2013
|
2012
|
2010
|
|
|
|
|
|
|
|
|
|
|
Ratios (As a percentage of average daily net assets):
|
Gross expenses
|
|
|
2.01
|
%
|
|
2.01
|
%
|
|
1.76
|
%
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
1.41
|
%
|
|
1.68
|
%
|
|
1.22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
33
The Wright Managed Equity Trust
Notes to Financial Statements
1.
Significant Accounting Policies
Wright Selected Blue Chip Equities Fund (“WSBC”), Wright Major Blue Chip Equities Fund (“WMBC”), and Wright International Blue Chip Equities Fund (“WIBC”) (each a “Fund” and collectively, the “Funds”) (the Funds constituting Wright Managed Equity Trust (the “Trust”)), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. The Funds seek to provide total return consisting of price appreciation and current income.
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
A. Investment Valuations – Equity securities listed on a U.S. securities exchange generally are valued at the last sale price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and asked prices therefore on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ Global or Global Select Market generally are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and asked prices or, in the case of preferred equity securities that are not listed or traded in the over-the-counter market, by a third party pricing service. Investments in open-end mutual funds are valued at net asset value. Short-term debt securities with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. If short-term debt securities are acquired with a remaining maturity of more than sixty days, they will be valued by a third party pricing service. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by a third party pricing service. The daily valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges are monitored by the investment adviser and may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Funds in a manner that most fairly reflects the security’s value, or the amount that the Funds might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies, quotations or relevant information obtained from broker-dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B. Investment Transactions – Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.
C. Income – Dividend income is recorded on the ex-dividend date. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Funds are informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Funds’ understanding of applicable countries’ tax rules and rates. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium and accretion of discount.
D. Federal Taxes – Each Fund’s policy is to comply with the provisions of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable income and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. Foreign taxes are provided for based on WIBC’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. At December 31,
34
The Wright Managed Equity Trust
Notes to Financial Statements
2013, WMBC and WIBC, for federal income tax purposes, have capital loss carryforwards of $3,708,193 and $51,755,977, respectively, which will reduce each Fund’s taxable income arising from future net realized gain on investment transactions, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders, which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. Pursuant to the Code, such capital loss carryforwards will expire as follows:
December 31,
|
WMBC
|
WIBC
|
2016
|
$ -
|
$17,058,561
|
2017
|
3,708,193
|
34,697,416
|
As of December 31, 2013, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Funds’ federal tax returns filed in the 3-year period ended December 31, 2013, remains subject to examination by the Internal Revenue Service.
E. Expenses – The majority of expenses of the Trust are directly identifiable to an individual Fund. Expenses which are not readily identifiable to a specific Fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the Funds.
F. Redemption Fees – A shareholder who redeems or exchanges shares of WIBC within three months of purchase will incur a redemption fee of 2.00% of the current net asset value of shares redeemed, subject to certain limitations. The fee is charged for the benefit of the remaining shareholders and will be paid to WIBC to help offset transaction costs. The fee is accounted for as an addition to paid-in capital. The Fund reserves the right to modify the terms of or terminate the fee at any time. There are limited exceptions to the imposition of the redemption fee.
G. Foreign Currency Translation – Investment valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. The portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
H. Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
I. Indemnifications – Under each Fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Funds, and shareholders are indemnified against personal liability for the obligations of the Funds. Additionally, in the normal course of business, the Funds enter into agreements with service providers that may contain indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
2.
Distributions to Shareholders
It is the present policy of the Trust to make annual distributions of all or substantially all of the net investment income of the Funds and to distribute annually all or substantially all of the net realized capital gains (reduced by available capital loss carryforwards from prior years, if any) of the Funds. Distributions to shareholders are recorded on the ex-dividend date. Shareholders may reinvest income and capital gain distributions in additional shares of the same Fund at the net asset value as of the reinvestment date or, at the election of the shareholder,
35
The Wright Managed Equity Trust
Notes to Financial Statements
receive distributions in cash. The Funds distinguish between distributions on a tax basis and a financial reporting basis. GAAP requires that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
The tax character of distributions paid for the year ended December 31, 2013, and December 31, 2012, was as follows:
Year Ended 12/31/13
|
|
WSBC
|
|
|
WMBC
|
|
|
WIBC
|
|
Distributions declared from:
|
|
|
|
|
|
|
|
|
|
Ordinary income
|
|
$
|
78,389
|
|
|
$
|
103,923
|
|
|
$
|
1,049,112
|
|
Long-term capital gain
|
|
|
4,638,287
|
|
|
|
-
|
|
|
|
-
|
|
Year Ended 12/31/12
|
|
WSBC
|
|
|
WMBC
|
|
|
WIBC
|
|
Distributions declared from:
|
|
|
|
|
|
|
|
|
|
Ordinary income
|
|
$
|
68,336
|
|
|
$
|
111,377
|
|
|
$
|
631,283
|
|
Long-term capital gain
|
|
|
1,149,678
|
|
|
|
-
|
|
|
|
-
|
|
During the year ended December 31, 2013, the following amounts were reclassified due to real estate investment trusts, net operating loss offsetting short term gains, foreign currency gain (loss) and passive foreign investment company transactions.
Increase (decrease):
|
|
|
WSBC
|
|
|
|
WIBC
|
|
Accumulated net realized gain (loss)
|
|
$
|
(20,511
|
)
|
|
$
|
(138,702
|
)
|
Undistributed net investment income (loss)
|
|
|
20,511
|
|
|
|
138,702
|
|
These reclassifications had no effect on the net assets or net asset value per share of the Funds.
As of December 31, 2013, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
|
|
|
WSBC
|
|
|
|
WMBC
|
|
|
|
WIBC
|
|
Undistributed ordinary income
|
|
$
|
738,264
|
|
|
$
|
4,605
|
|
|
$
|
24,352
|
|
Undistributed long-term gain
|
|
|
1,758,196
|
|
|
|
-
|
|
|
|
-
|
|
Capital loss carryforward and post October losses
|
|
|
-
|
|
|
|
(3,708,193
|
)
|
|
|
(51,755,977
|
)
|
Net unrealized appreciation
|
|
|
12,447,273
|
|
|
|
3,064,043
|
|
|
|
8,050,871
|
|
Total
|
|
$
|
14,943,733
|
|
|
$
|
(639,545
|
)
|
|
$
|
(43,680,754
|
)
|
The difference between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to wash sales and passive foreign investment company transactions.
3.
Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Wright Investor Services, Inc. (“Wright”) as compensation for investment advisory services rendered to the Funds. The fees are computed at annual rates of the Funds' average daily net assets as noted below, and are payable monthly.
36
The Wright Managed Equity Trust
Notes to Financial Statements
Annual Advisory Fee Rates
|
Fund
|
Under $100 Million
|
$100 Million to $250 Million
|
$250 Million to $500 Million
|
$500 Million to $1 Billion
|
Over $1 Billion
|
WSBC
|
0.60%
|
0.57%
|
0.54%
|
0.50%
|
0.45%
|
WMBC
|
0.60%
|
0.57%
|
0.54%
|
0.50%
|
0.45%
|
WIBC
|
0.80%
|
0.78%
|
0.76%
|
0.72%
|
0.67%
|
For the year ended December 31, 2013, the fee and the effective annual rate, as a percentage of average daily net assets for each of the Funds were as follows:
Fund
|
|
Investment Adviser Fee
|
|
|
Effective Annual Rate
|
|
WSBC
|
|
$
|
221,153
|
|
|
|
0.60
|
%
|
WMBC
|
|
$
|
98,020
|
|
|
|
0.60
|
%
|
WIBC
|
|
$
|
251,239
|
|
|
|
0.80
|
%
|
The administrator fee is earned by Wright for administering the business affairs of each Fund. The fee is computed at an annual rate of 0.17% of WIBC’s average daily net assets up to $100 million and 0.07% of average daily net assets over $100 million. The fee is computed at an annual rate of 0.12% of WSBC’s and WMBC’s average daily net assets up to $100 million and 0.07% of average daily net assets over $100 million. Atlantic Fund Administration, LLC (d/b/a Atlantic Fund Services) (“Atlantic”) serves as sub-administrator of the Funds to perform certain services of the administrator as may be agreed upon between the administrator and sub-administrator. The sub-administration fee is paid by Wright.
For the year ended December 31, 2013, the administrator fee for WSBC, WMBC and WIBC amounted to $44,231, $19,604 and $53,388, respectively.
Certain Trustees and officers of the Trust are Trustees or officers of the above organizations and/or of the Funds’ principal underwriter. Except as to Trustees of the Trust who are not employees of Atlantic or Wright, Trustees and officers receive remuneration for their services to the Trust out of the fees paid to Atlantic and Wright. The Trustees are compensated by the Trust in conjunction with the Wright Managed Income Trust, rather than on a per Trust or per Fund basis. Quarterly retainer fees are paid in the amount of $4,000 to the Lead Trustee, $3,500 to the Secretary of Independent Trustees, and $3,000 each to the remaining Trustees. In addition, each Trustee will be paid a fee of $1,500 for each regular Board meeting attended. Each Trustee is also reimbursed for all reasonable out-of-pocket expenses incurred in connection with his duties as a Trustee, including travel and related expenses incurred in attending Board meetings. The amount of Trustees’ fees attributable to each Fund is disclosed in each Fund’s Statement of Operations.
4.
Distribution and Service Plans
The Trust has in effect a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 of the 1940 Act. The Plan provides that each Fund will pay Wright Investors’ Service Distributors, Inc. (“WISDI”), the principal underwriter, a wholly-owned subsidiary of The Winthrop Corporation and an affiliate of Wright, a distribution fee of 0.25% of the average daily net assets of each Fund for distribution services and facilities provided to the Funds by WISDI. Distribution fees paid or accrued to WISDI for the year ended December 31, 2013, for WSBC, WMBC and WIBC were $92,147, $40,842 and $78,512, respectively. In addition, the Trustees have adopted a service plan (the “Service Plan”) which allows the Funds to reimburse the principal underwriter for payments to intermediaries for providing account administration and personal and account maintenance services to their customers who are beneficial owners of each Fund’s shares. The combined amount of service fees payable under the Service Plan and Rule 12b-1 distribution fees may not exceed 0.25% annually of each Fund’s average daily net assets. For the year ended December 31, 2013, the Funds did not accrue or pay any service fees.
Pursuant to an Expense Limitation Agreement, Wright and WISDI have agreed to waive all or a portion of their fees and reimburse expenses to the extent that total annual operating expenses exceed 1.40% of the
37
The Wright Managed Equity Trust
Notes to Financial Statements
average daily net assets of each of WSBC and WMBC and 1.85% of the average daily net assets of WIBC through April 30, 2014 (excluding interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund’s business). Thereafter, the waiver and reimbursement may be changed or terminated at any time. Pursuant to this agreement, Wright waived and/or reimbursed investment adviser fees and expenses of $35,396 for WMBC. WISDI waived distribution fees of $8,322, $40,842 and $50,173 for WSBC, WMBC and WIBC, respectively.
5.
Investment Transactions
Purchases and sales of investments, other than short-term obligations, were as follows:
Year Ended December 31, 2013
|
|
|
|
WSBC
|
|
|
WMBC
|
|
|
WIBC
|
|
Purchases
|
|
$
|
27,542,352
|
|
|
$
|
10,406,373
|
|
|
$
|
14,045,137
|
|
Sales
|
|
$
|
30,914,251
|
|
|
$
|
12,823,646
|
|
|
$
|
20,504,914
|
|
6.
Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in Fund shares were as follows:
|
|
|
Year Ended December 31, 2013
|
|
Year Ended December 31, 2012
|
|
|
|
|
Shares
|
|
|
|
Amount
|
|
|
Shares
|
|
|
|
Amount
|
|
|
|
WSBC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold
|
730,104
|
|
|
$
|
9,257,764
|
|
|
651,931
|
|
|
$
|
7,196,342
|
|
|
|
Issued to shareholders in payment of distributions declared
|
277,835
|
|
|
|
3,678,541
|
|
|
82,388
|
|
|
|
944,573
|
|
|
|
Redemptions
|
(763,906
|
)
|
|
|
(10,075,454
|
)
|
|
(1,286,524
|
)
|
|
|
(14,479,497
|
)
|
|
|
Net increase (decrease)
|
244,033
|
|
|
$
|
2,860,851
|
|
|
(552,205
|
)
|
|
$
|
(6,338,582
|
)
|
|
|
|
|
Year Ended December 31, 2013
|
|
Year Ended December 31, 2012
|
|
|
|
|
Shares
|
|
|
|
Amount
|
|
|
Shares
|
|
|
|
Amount
|
|
|
|
WMBC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold
|
104,380
|
|
|
$
|
1,476,739
|
|
|
75,837
|
|
|
$
|
970,777
|
|
|
|
Issued to shareholders in payment of distributions declared
|
5,961
|
|
|
|
96,441
|
|
|
8,191
|
|
|
|
103,537
|
|
|
|
Redemptions
|
(297,734
|
)
|
|
|
(4,248,679
|
)
|
|
(401,489
|
)
|
|
|
(5,146,223
|
)
|
|
|
Net decrease
|
(187,393
|
)
|
|
$
|
(2,675,499
|
)
|
|
(317,461
|
)
|
|
$
|
(4,071,909
|
)
|
|
|
|
|
Year Ended December 31, 2013
|
|
Year Ended December 31, 2012
|
|
|
|
|
|
Shares
|
|
|
|
Amount
|
|
|
Shares
|
|
|
|
Amount
|
|
|
|
|
WIBC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold
|
196,159
|
|
|
$
|
2,948,227
|
|
|
167,193
|
|
|
$
|
2,284,177
|
|
|
|
|
Issued to shareholders in payment of distributions declared
|
64,952
|
|
|
|
1,001,441
|
|
|
42,643
|
|
|
|
590,876
|
|
|
|
|
Redemptions
|
(647,060
|
)
|
|
|
(9,611,638
|
)
|
|
(576,734
|
)
|
|
|
(7,659,569
|
)
|
|
|
|
Redemption fees
|
-
|
|
|
|
722
|
|
|
-
|
|
|
|
1,932
|
|
|
|
|
Net decrease
|
(385,949
|
)
|
|
$
|
(5,661,248
|
)
|
|
(366,898
|
)
|
|
$
|
(4,782,584
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38
The Wright Managed Equity Trust
Notes to Financial Statements
7.
Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of the investment securities owned at December 31, 2013, as computed on a federal income tax basis, were as follows:
Year Ended December 31, 2013
|
|
|
|
WSBC
|
|
|
WMBC
|
|
|
WIBC
|
|
Aggregate cost
|
|
$
|
27,728,421
|
|
|
$
|
14,806,165
|
|
|
$
|
23,891,881
|
|
Gross unrealized appreciation
|
|
$
|
12,551,006
|
|
|
$
|
3,208,762
|
|
|
$
|
8,429,732
|
|
Gross unrealized depreciation
|
|
|
(103,733
|
)
|
|
|
(144,719
|
)
|
|
|
(381,681
|
)
|
Net unrealized appreciation
|
|
$
|
12,447,273
|
|
|
$
|
3,064,043
|
|
|
$
|
8,048,051
|
|
8.
Line of Credit
The Funds participate with other funds managed by Wright in a committed $10 million unsecured line of credit agreement with Union Bank of California, N.A. (“Union Bank”). The Funds may temporarily borrow from the line of credit to satisfy redemption requests or settle investment transactions. Interest is charged to each Fund based on its borrowings at an amount above the LIBOR rate. Because the line of credit is not available exclusively to each Fund, they may be unable to borrow some or all of the Funds’ requested amounts at any particular time. At December 31, 2013, WMBC had a balance outstanding pursuant to this line of credit of $186,670 at an interest rate of 1.19%.
The average borrowings and average interest rate (based on days with outstanding balances) for the year ended December 31, 2013, were as follows:
|
|
WSBC
|
|
|
WMBC
|
|
|
WIBC
|
|
Average borrowings
|
|
$
|
280,726
|
|
|
$
|
113,050
|
|
|
$
|
261,173
|
|
Average interest rate
|
|
|
1.18
|
%
|
|
|
1.19
|
%
|
|
|
1.18
|
%
|
9.
Risks Associated with Foreign Investments
Investing in securities issued by companies whose principal business activities are outside the United States may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Certain foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of the Funds, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers and issuers than in the United States.
10.
Fair Value Measurements
Under GAAP for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
39
The Wright Managed Equity Trust
Notes to Financial Statements
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At December 31, 2013, the inputs used in valuing each Fund’s investments, which are carried at value, were as follows:
WSBC
Asset Description
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
|
Significant Other Observable Inputs (Level 2)
|
|
|
Significant Unobservable Inputs (Level 3)
|
|
|
Total
|
|
Equity Interests
|
|
$
|
38,356,196
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
38,356,196
|
|
Short-Term Investments
|
|
|
-
|
|
|
|
1,819,498
|
|
|
|
-
|
|
|
|
1,819,498
|
|
Total Investments
|
|
$
|
38,356,196
|
|
|
$
|
1,819,498
|
|
|
$
|
-
|
|
|
$
|
40,175,694
|
|
WMBC
Asset Description
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
|
Significant Other Observable Inputs (Level 2)
|
|
|
Significant Unobservable Inputs (Level 3)
|
|
|
Total
|
|
Equity Interests
|
|
$
|
17,870,208
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
17,870,208
|
|
Total Investments
|
|
$
|
17,870,208
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
17,870,208
|
|
WIBC
Asset Description
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
|
Significant Other Observable Inputs (Level 2)
|
|
|
Significant Unobservable Inputs (Level 3)
|
|
|
Total
|
|
Equity Interests
|
|
$
|
31,345,216
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
31,345,216
|
|
Short-Term Investments
|
|
|
-
|
|
|
|
594,716
|
|
|
|
-
|
|
|
|
594,716
|
|
Total Investments
|
|
$
|
31,345,216
|
|
|
$
|
594,716
|
|
|
$
|
-
|
|
|
$
|
31,939,932
|
|
The Level 1 inputs displayed in these tables under Equity Interests are Common Stock and Preferred Stock. Refer to each Fund’s Portfolio of Investments for a further breakout of each security by industry or country.
There were no transfers between Level 1, Level 2 and Level 3 for the year ended December 31, 2013.
40
The Wright Managed Equity Trust
Notes to Financial Statements
The following is a reconciliation of Level 3 assets for WIBC for which significant unobservable inputs were used to determine fair value.
|
|
Equity Interests
|
|
Balance as of 12/31/12
|
|
$
|
5,307
|
|
Change in Unrealized Appreciation
|
|
|
(5,307
|
)
|
Realized Gain (Loss)
|
|
|
5,076
|
|
Sales
|
|
|
(5,076
|
)
|
Balance as of 12/31/13
|
|
$
|
-
|
|
Net change in unrealized appreciation from investments held as of 12/31/13 **
|
|
$
|
-
|
|
** The change in unrealized appreciation (depreciation) is included in net change in unrealized appreciation (depreciation) of investments in the accompanying Statement of Operations.
The Fund utilizes the end of period methodology when determining transfers in or out of the Level 3 category.
11.
Review for Subsequent Events
In connection with the preparation of the financial statements of the Funds as of and for the year ended December 31, 2013, events and transactions subsequent to December 31, 2013, have been evaluated by the Funds’ management for possible adjustment and/or disclosure. Management has not identified any subsequent events requiring financial statement disclosure as of the date these financial statements were issued.
41
The Wright Managed Equity Trust
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of The Wright Managed Equity Trust
and the Shareholders of Wright Selected Blue Chip Equities Fund, Wright Major Blue Chip Equities Fund and Wright International Blue Chip Equities Fund
We have audited the accompanying statements of assets and liabilities of Wright Selected Blue Chip Equities Fund, Wright Major Blue Chip Equities Fund, and Wright International Blue Chip Equities Fund (the "Funds"), each a series of shares of The Wright Managed Equity Trust, including the portfolios of investments, as of December 31, 2013, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the four-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the year ended December 31, 2009 were audited by other auditors whose report dated February 23, 2010, expressed an unqualified opinion on such financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2013 by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Wright Selected Blue Chip Equities Fund, Wright Major Blue Chip Equities Fund, and Wright International Blue Chip Equities Fund as of December 31, 2013, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the three years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
BBD, LLP
Philadelphia, Pennsylvania
February 24, 2014
42
The Wright Managed Equity Trust
Federal Tax Information (Unaudited)
The Form 1099-DIV you received in January 2014 showed the tax status of all distributions paid to your account in calendar year 2013. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Funds. As required by the Internal Revenue Code regulations, shareholders must be notified within 60 days of a Fund’s fiscal year end regarding capital gain dividends, and the status of qualified dividend income for individuals, the dividends received deduction for corporations and the foreign tax credit.
Qualified Dividend Income
– Wright Selected Blue Chip Equities Fund, Wright Major Blue Chip Equities Fund and Wright International Blue Chip Equities Fund designate 99.93%, 100.00% and 0.01%, respectively, of its income dividend distributed as qualifying for the corporate dividends-received deduction (DRD). Also, Wright Selected Blue Chip Equities Fund, Wright Major Blue Chip Equities Fund and Wright International Blue Chip Equities Fund designate 99.93%, 100.00% and 97.75%, respectively, for the qualified dividend rate (QDI) as defined in Section 1(h)(11) of the Internal Revenue Code. Wright Selected Blue Chip Equities Fund also designates 90.50% of its income distributions as short-term capital gain dividends exempt from U.S. tax for foreign shareholders (QSD).
43
Wright Total Return Bond Fund (WTRB)
Schedule of Investments - As of December 31, 2013
|
|
Face Amount
|
|
Description
|
|
Coupon Rate
|
|
Maturity Date
|
|
Value
|
|
FIXED INCOME INVESTMENTS - 98.1%
|
|
|
|
|
|
|
|
|
|
|
|
ASSET-BACKED SECURITIES - 0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
93,878
|
|
PSE&G Transition Funding LLC, Series 2001-1, Class A7
|
|
|
6.750
|
%
|
06/15/16
|
|
$
|
95,825
|
|
Total Asset-Backed Securities (identified cost, $96,718)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
95,825
|
|
COMMERCIAL MORTGAGE-BACKED SECURITIES - 6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
300,000
|
|
LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A4
|
|
|
5.372
|
%
|
09/15/39
|
|
$
|
327,640
|
|
|
|
|
296,313
|
|
Merrill Lynch Mortgage Trust, Series 2005-LC1, Class A4
|
|
|
5.291
|
%
|
01/12/44
|
|
|
316,598
|
|
|
|
|
310,000
|
|
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-2, Class A4
|
|
|
5.886
|
%
|
06/12/46
|
|
|
338,924
|
|
Total Commercial Mortgage-Backed Securities (identified cost, $903,580)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
983,162
|
|
CORPORATE BONDS - 44.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUTO MANUFACTURERS - 1.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
200,000
|
|
Toyota Motor Credit Corp., MTN
|
|
|
3.300
|
%
|
01/12/22
|
|
$
|
200,409
|
|
CONSUMER DURABLES & APPAREL - 0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
65,000
|
|
Hasbro, Inc.
|
|
|
6.125
|
%
|
05/15/14
|
|
$
|
66,308
|
|
DIVERSIFIED FINANCIALS - 9.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
70,000
|
|
Aflac, Inc.
|
|
|
3.625
|
%
|
06/15/23
|
|
$
|
67,892
|
|
|
|
|
27,000
|
|
Ameriprise Financial, Inc.
|
|
|
5.650
|
%
|
11/15/15
|
|
|
29,337
|
|
|
|
|
85,000
|
|
Bank of America Corp., MTN
|
|
|
5.000
|
%
|
05/13/21
|
|
|
93,030
|
|
|
|
|
55,000
|
|
Capital One Financial Corp.
|
|
|
7.375
|
%
|
05/23/14
|
|
|
56,422
|
|
|
|
|
110,000
|
|
Rabobank Nederland
|
|
|
2.125
|
%
|
10/13/15
|
|
|
112,885
|
|
|
|
|
30,000
|
|
Eaton Vance Corp.
|
|
|
6.500
|
%
|
10/02/17
|
|
|
34,080
|
|
|
|
|
145,000
|
|
General Electric Capital Corp., MTN, Series A
|
|
|
6.750
|
%
|
03/15/32
|
|
|
180,061
|
|
|
|
|
155,000
|
|
Goldman Sachs Group, Inc. (The)
|
|
|
6.150
|
%
|
04/01/18
|
|
|
177,903
|
|
|
|
|
170,000
|
|
JPMorgan Chase & Co.
|
|
|
6.300
|
%
|
04/23/19
|
|
|
200,874
|
|
|
|
|
75,000
|
|
Merrill Lynch & Co., Inc.
|
|
|
6.050
|
%
|
05/16/16
|
|
|
82,563
|
|
|
|
|
90,000
|
|
Morgan Stanley
|
|
|
5.500
|
%
|
07/28/21
|
|
|
100,729
|
|
|
|
|
70,000
|
|
Nomura Holdings, Inc.
|
|
|
5.000
|
%
|
03/04/15
|
|
|
73,149
|
|
|
|
|
85,000
|
|
PNC Funding Corp.
|
|
|
4.250
|
%
|
09/21/15
|
|
|
89,976
|
|
|
|
|
55,000
|
|
SunTrust Banks, Inc.
|
|
|
6.000
|
%
|
09/11/17
|
|
|
62,341
|
|
|
|
|
150,000
|
|
Wells Fargo & Co.
|
|
|
3.625
|
%
|
04/15/15
|
|
|
156,069
|
|
ENERGY - 2.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
105,000
|
|
Baker Hughes, Inc.
|
|
|
6.875
|
%
|
01/15/29
|
|
$
|
130,457
|
|
|
|
|
50,000
|
|
ONEOK Partners LP
|
|
|
6.850
|
%
|
10/15/37
|
|
|
57,076
|
|
|
|
|
60,000
|
|
ONEOK, Inc.
|
|
|
5.200
|
%
|
06/15/15
|
|
|
63,387
|
|
|
|
|
70,000
|
|
Peabody Energy Corp.
|
|
|
7.375
|
%
|
11/01/16
|
|
|
79,100
|
|
|
|
|
55,000
|
|
Valero Energy Corp.
|
|
|
9.375
|
%
|
03/15/19
|
|
|
70,959
|
|
FOOD, BEVERAGE & TOBACCO - 1.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
13,000
|
|
Altria Group, Inc.
|
|
|
9.700
|
%
|
11/10/18
|
|
$
|
17,104
|
|
|
|
|
100,000
|
|
Ingredion, Inc.
|
|
|
4.625
|
%
|
11/01/20
|
|
|
104,422
|
|
|
|
|
100,000
|
|
PepsiCo, Inc.
|
|
|
7.900
|
%
|
11/01/18
|
|
|
125,128
|
|
HEALTH CARE EQUIPMENT & SERVICES - 2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
105,000
|
|
Cigna Corp.
|
|
|
2.750
|
%
|
11/15/16
|
|
$
|
109,362
|
|
|
|
|
75,000
|
|
Laboratory Corp. of America Holdings
|
|
|
3.125
|
%
|
05/15/16
|
|
|
78,108
|
|
|
|
|
80,000
|
|
UnitedHealth Group, Inc.
|
|
|
6.000
|
%
|
02/15/18
|
|
|
92,511
|
|
|
|
|
95,000
|
|
WellPoint, Inc.
|
|
|
4.350
|
%
|
08/15/20
|
|
|
100,551
|
|
HOUSEHOLD & PERSONAL PRODUCTS - 0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
60,000
|
|
Estee Lauder Cos., Inc. (The)
|
|
|
6.000
|
%
|
05/15/37
|
|
$
|
68,033
|
|
See Notes to Financial Statements.
44
Wright Total Return Bond Fund (WTRB)
Schedule of Investments - As of December 31, 2013
|
|
Face Amount
|
|
Description
|
|
Coupon Rate
|
|
Maturity Date
|
|
Value
|
|
INFORMATION SERVICES - 1.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
85,000
|
|
Equifax, Inc.
|
|
|
4.450
|
%
|
12/01/14
|
|
$
|
87,683
|
|
|
|
|
100,000
|
|
Moody's Corp.
|
|
|
5.500
|
%
|
09/01/20
|
|
|
106,103
|
|
INSURANCE - 4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
100,000
|
|
Loews Corp.
|
|
|
5.250
|
%
|
03/15/16
|
|
$
|
109,064
|
|
|
|
|
75,000
|
|
MetLife, Inc.
|
|
|
5.000
|
%
|
06/15/15
|
|
|
79,634
|
|
|
|
|
155,000
|
|
PartnerRe Finance B, LLC
|
|
|
5.500
|
%
|
06/01/20
|
|
|
168,383
|
|
|
|
|
55,000
|
|
Principal Financial Group, Inc.
|
|
|
8.875
|
%
|
05/15/19
|
|
|
70,398
|
|
|
|
|
50,000
|
|
Prudential Financial, Inc., MTN
|
|
|
4.500
|
%
|
11/15/20
|
|
|
53,719
|
|
|
|
|
50,000
|
|
Prudential Financial, Inc., MTN, Series D
|
|
|
7.375
|
%
|
06/15/19
|
|
|
61,455
|
|
|
|
|
100,000
|
|
Travelers Cos., Inc. (The)
|
|
|
5.500
|
%
|
12/01/15
|
|
|
109,138
|
|
MATERIALS - 1.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
70,000
|
|
Dow Chemical Co. (The)
|
|
|
7.375
|
%
|
03/01/23
|
|
$
|
82,314
|
|
|
|
|
70,000
|
|
Greif, Inc.
|
|
|
6.750
|
%
|
02/01/17
|
|
|
77,875
|
|
|
|
|
100,000
|
|
Lubrizol Corp.
|
|
|
8.875
|
%
|
02/01/19
|
|
|
129,881
|
|
MEDIA - 2.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
90,000
|
|
Comcast Cable Communications Holdings, Inc.
|
|
|
9.455
|
%
|
11/15/22
|
|
$
|
124,860
|
|
|
|
|
40,000
|
|
DIRECTV Holdings, LLC / DIRECTV Financing Co., Inc.
|
|
|
5.000
|
%
|
03/01/21
|
|
|
42,083
|
|
|
|
|
45,000
|
|
McGraw Hill Financial, Inc.
|
|
|
5.900
|
%
|
11/15/17
|
|
|
48,922
|
|
|
|
|
50,000
|
|
Time Warner Cable, Inc.
|
|
|
8.250
|
%
|
04/01/19
|
|
|
58,639
|
|
|
|
|
65,000
|
|
Time Warner Cos., Inc.
|
|
|
6.950
|
%
|
01/15/28
|
|
|
76,869
|
|
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES - 0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
95,000
|
|
Thermo Fisher Scientific, Inc.
|
|
|
3.150
|
%
|
01/15/23
|
|
$
|
88,579
|
|
PIPELINES - 1.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
60,000
|
|
Spectra Energy Capital, LLC
|
|
|
5.650
|
%
|
03/01/20
|
|
$
|
65,421
|
|
|
|
|
100,000
|
|
TransCanada PipeLines, Ltd.
|
|
|
6.500
|
%
|
08/15/18
|
|
|
117,808
|
|
REAL ESTATE - 1.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
200,000
|
|
Simon Property Group LP
|
|
|
2.750
|
%
|
02/01/23
|
|
$
|
183,120
|
|
RETAILING - 1.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
55,000
|
|
AutoZone, Inc.
|
|
|
5.750
|
%
|
01/15/15
|
|
$
|
57,790
|
|
|
|
|
95,000
|
|
Kohl's Corp.
|
|
|
4.000
|
%
|
11/01/21
|
|
|
95,118
|
|
|
|
|
72,000
|
|
L Brands, Inc.
|
|
|
5.250
|
%
|
11/01/14
|
|
|
74,610
|
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
115,000
|
|
Applied Materials, Inc.
|
|
|
7.125
|
%
|
10/15/17
|
|
$
|
135,167
|
|
SOFTWARE & SERVICES - 3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
90,000
|
|
Adobe Systems, Inc.
|
|
|
4.750
|
%
|
02/01/20
|
|
$
|
97,282
|
|
|
|
|
100,000
|
|
eBay, Inc.
|
|
|
3.250
|
%
|
10/15/20
|
|
|
101,885
|
|
|
|
|
105,000
|
|
International Business Machines Corp.
|
|
|
7.625
|
%
|
10/15/18
|
|
|
131,477
|
|
|
|
|
80,000
|
|
Oracle Corp.
|
|
|
5.375
|
%
|
07/15/40
|
|
|
85,732
|
|
|
|
|
100,000
|
|
Symantec Corp.
|
|
|
4.200
|
%
|
09/15/20
|
|
|
101,568
|
|
TECHNOLOGY HARDWARE & EQUIPMENT - 0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
50,000
|
|
Pitney Bowes, Inc., MTN
|
|
|
5.250
|
%
|
01/15/37
|
|
$
|
53,672
|
|
TELECOMMUNICATIONS - 2.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
105,000
|
|
BellSouth Corp.
|
|
|
6.000
|
%
|
11/15/34
|
|
$
|
105,992
|
|
|
|
|
70,000
|
|
British Telecommunications PLC
|
|
|
9.625
|
%
|
12/15/30
|
|
|
104,716
|
|
|
|
|
100,000
|
|
Verizon Communications, Inc.
|
|
|
7.750
|
%
|
12/01/30
|
|
|
128,053
|
|
TRANSPORTATION - 0.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
70,000
|
|
Burlington Northern Santa Fe, LLC
|
|
|
6.200
|
%
|
08/15/36
|
|
$
|
79,242
|
|
See Notes to Financial Statements.
45
Wright Total Return Bond Fund (WTRB)
Schedule of Investments - As of December 31, 2013
|
|
Face Amount
|
|
Description
|
|
Coupon Rate
|
|
Maturity Date
|
|
Value
|
|
UTILITIES - 4.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
110,000
|
|
Consolidated Edison Co. of New York, Inc.
|
|
|
7.125
|
%
|
12/01/18
|
|
$
|
134,162
|
|
|
|
|
90,000
|
|
Dominion Resources, Inc., Series E
|
|
|
6.300
|
%
|
03/15/33
|
|
|
103,478
|
|
|
|
|
80,000
|
|
Exelon Generation Co., LLC
|
|
|
5.200
|
%
|
10/01/19
|
|
|
86,321
|
|
|
|
|
115,000
|
|
NextEra Energy Capital Holdings, Inc., Series D
|
|
|
7.300
|
%
(1)
|
09/01/67
|
|
|
126,602
|
|
|
|
|
50,000
|
|
Pacific Gas & Electric Co.
|
|
|
8.250
|
%
|
10/15/18
|
|
|
62,598
|
|
|
|
|
60,000
|
|
Public Service Electric & Gas Co., MTN
|
|
|
5.300
|
%
|
05/01/18
|
|
|
67,872
|
|
|
|
|
75,000
|
|
Sempra Energy
|
|
|
6.500
|
%
|
06/01/16
|
|
|
84,438
|
|
Total Corporate Bonds (identified cost, $6,323,005)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,839,949
|
|
U.S. GOVERNMENT INTERESTS - 46.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AGENCY MORTGAGE-BACKED SECURITIES - 31.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
74,780
|
|
FHLMC Gold Pool #A32600
|
|
|
5.500
|
%
|
05/01/35
|
|
$
|
82,688
|
|
|
|
|
16,181
|
|
FHLMC Gold Pool #C01646
|
|
|
6.000
|
%
|
09/01/33
|
|
|
18,154
|
|
|
|
|
20,052
|
|
FHLMC Gold Pool #C27663
|
|
|
7.000
|
%
|
06/01/29
|
|
|
20,597
|
|
|
|
|
90,009
|
|
FHLMC Gold Pool #C47318
|
|
|
7.000
|
%
|
09/01/29
|
|
|
104,790
|
|
|
|
|
60,247
|
|
FHLMC Gold Pool #C66878
|
|
|
6.500
|
%
|
05/01/32
|
|
|
68,978
|
|
|
|
|
77,148
|
|
FHLMC Gold Pool #C91046
|
|
|
6.500
|
%
|
05/01/27
|
|
|
85,854
|
|
|
|
|
10,896
|
|
FHLMC Gold Pool #D66753
|
|
|
6.000
|
%
|
10/01/23
|
|
|
12,042
|
|
|
|
|
1,200
|
|
FHLMC Gold Pool #E00903
|
|
|
7.000
|
%
|
10/01/15
|
|
|
1,242
|
|
|
|
|
91,299
|
|
FHLMC Gold Pool #G01035
|
|
|
6.000
|
%
|
05/01/29
|
|
|
102,376
|
|
|
|
|
25,119
|
|
FHLMC Gold Pool #G02478
|
|
|
5.500
|
%
|
12/01/36
|
|
|
27,432
|
|
|
|
|
48,375
|
|
FHLMC Gold Pool #N30514
|
|
|
5.500
|
%
|
11/01/28
|
|
|
52,911
|
|
|
|
|
187,112
|
|
FHLMC Gold Pool #P00024
|
|
|
7.000
|
%
|
09/01/32
|
|
|
210,857
|
|
|
|
|
2,117
|
|
FHLMC Gold Pool #P50031
|
|
|
7.000
|
%
|
08/01/18
|
|
|
2,143
|
|
|
|
|
39,623
|
|
FHLMC Gold Pool #P50064
|
|
|
7.000
|
%
|
09/01/30
|
|
|
44,775
|
|
|
|
|
49,990
|
|
FHLMC Pool #1B1291
|
|
|
2.378
|
%
(1)
|
11/01/33
|
|
|
52,764
|
|
|
|
|
131,633
|
|
FHLMC Pool #1G0233
|
|
|
2.511
|
%
(1)
|
05/01/35
|
|
|
139,999
|
|
|
|
|
11,469
|
|
FHLMC Pool #781071
|
|
|
2.534
|
%
(1)
|
11/01/33
|
|
|
11,833
|
|
|
|
|
10,093
|
|
FHLMC Pool #781804
|
|
|
5.033
|
%
(1)
|
07/01/34
|
|
|
10,657
|
|
|
|
|
4,407
|
|
FHLMC Pool #781884
|
|
|
5.209
|
%
(1)
|
08/01/34
|
|
|
4,649
|
|
|
|
|
13,050
|
|
FHLMC Pool #782862
|
|
|
5.018
|
%
(1)
|
11/01/34
|
|
|
13,696
|
|
|
|
|
113,031
|
|
FHLMC, Series 1983, Class Z
|
|
|
6.500
|
%
|
12/15/23
|
|
|
126,538
|
|
|
|
|
92,623
|
|
FHLMC, Series 2044, Class PE
|
|
|
6.500
|
%
|
04/15/28
|
|
|
104,165
|
|
|
|
|
464,695
|
|
FHLMC, Series 2627, Class MW
|
|
|
5.000
|
%
|
06/15/23
|
|
|
505,091
|
|
|
|
|
73,891
|
|
FNMA Pool #253057
|
|
|
8.000
|
%
|
12/01/29
|
|
|
84,087
|
|
|
|
|
1,756
|
|
FNMA Pool #479477
|
|
|
6.000
|
%
|
01/01/29
|
|
|
1,950
|
|
|
|
|
3,176
|
|
FNMA Pool #489357
|
|
|
6.500
|
%
|
03/01/29
|
|
|
3,542
|
|
|
|
|
9,198
|
|
FNMA Pool #535332
|
|
|
8.500
|
%
|
04/01/30
|
|
|
10,859
|
|
|
|
|
18,277
|
|
FNMA Pool #545782
|
|
|
7.000
|
%
|
07/01/32
|
|
|
21,040
|
|
|
|
|
10,774
|
|
FNMA Pool #597396
|
|
|
6.500
|
%
|
09/01/31
|
|
|
12,005
|
|
|
|
|
41,338
|
|
FNMA Pool #621284
|
|
|
6.500
|
%
|
12/01/31
|
|
|
46,029
|
|
|
|
|
12,793
|
|
FNMA Pool #725866
|
|
|
4.500
|
%
|
09/01/34
|
|
|
13,613
|
|
|
|
|
46,631
|
|
FNMA Pool #738630
|
|
|
5.500
|
%
|
11/01/33
|
|
|
51,380
|
|
|
|
|
140,238
|
|
FNMA Pool #745001
|
|
|
6.500
|
%
|
09/01/35
|
|
|
157,173
|
|
|
|
|
61,690
|
|
FNMA Pool #745467
|
|
|
2.704
|
%
(1)
|
04/01/36
|
|
|
65,780
|
|
|
|
|
104,957
|
|
FNMA Pool #745755
|
|
|
5.000
|
%
|
12/01/35
|
|
|
114,242
|
|
|
|
|
37,530
|
|
FNMA Pool #747529
|
|
|
4.500
|
%
|
10/01/33
|
|
|
39,980
|
|
|
|
|
312,529
|
|
FNMA Pool #781893
|
|
|
4.500
|
%
|
11/01/31
|
|
|
334,330
|
|
|
|
|
15,650
|
|
FNMA Pool #809888
|
|
|
4.500
|
%
|
03/01/35
|
|
|
16,650
|
|
|
|
|
271,188
|
|
FNMA Pool #888366
|
|
|
7.000
|
%
|
04/01/37
|
|
|
303,377
|
|
|
|
|
248,939
|
|
FNMA Pool #888367
|
|
|
7.000
|
%
|
03/01/37
|
|
|
282,147
|
|
|
|
|
161,000
|
|
FNMA Pool #888417
|
|
|
6.500
|
%
|
01/01/36
|
|
|
181,690
|
|
|
|
|
10,455
|
|
FNMA Pool #906455
|
|
|
5.914
|
%
(1)
|
01/01/37
|
|
|
10,817
|
|
|
|
|
12,817
|
|
GNMA I Pool #376400
|
|
|
6.500
|
%
|
02/15/24
|
|
|
14,297
|
|
|
|
|
17,087
|
|
GNMA I Pool #379982
|
|
|
7.000
|
%
|
02/15/24
|
|
|
18,730
|
|
See Notes to Financial Statements.
46
Wright Total Return Bond Fund (WTRB)
Schedule of Investments - As of December 31, 2013
|
|
Face Amount
|
|
Description
|
|
Coupon Rate
|
|
Maturity Date
|
|
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AGENCY MORTGAGE-BACKED SECURITIES (CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
102,644
|
|
GNMA I Pool #393347
|
|
|
7.500
|
%
|
02/15/27
|
|
$
|
116,239
|
|
|
|
|
37,776
|
|
GNMA I Pool #410081
|
|
|
8.000
|
%
|
08/15/25
|
|
|
43,015
|
|
|
|
|
30,163
|
|
GNMA I Pool #427199
|
|
|
7.000
|
%
|
12/15/27
|
|
|
31,690
|
|
|
|
|
20,235
|
|
GNMA I Pool #448490
|
|
|
7.500
|
%
|
03/15/27
|
|
|
21,577
|
|
|
|
|
40,072
|
|
GNMA I Pool #458762
|
|
|
6.500
|
%
|
01/15/28
|
|
|
44,767
|
|
|
|
|
17,353
|
|
GNMA I Pool #460726
|
|
|
6.500
|
%
|
12/15/27
|
|
|
19,367
|
|
|
|
|
8,643
|
|
GNMA I Pool #510706
|
|
|
8.000
|
%
|
11/15/29
|
|
|
10,072
|
|
|
|
|
11,530
|
|
GNMA I Pool #581536
|
|
|
5.500
|
%
|
06/15/33
|
|
|
12,766
|
|
|
|
|
58,289
|
|
GNMA II Pool #002630
|
|
|
6.500
|
%
|
08/20/28
|
|
|
65,842
|
|
|
|
|
3,156
|
|
GNMA II Pool #002909
|
|
|
8.000
|
%
|
04/20/30
|
|
|
3,759
|
|
|
|
|
7,800
|
|
GNMA II Pool #002972
|
|
|
7.500
|
%
|
09/20/30
|
|
|
9,038
|
|
|
|
|
2,976
|
|
GNMA II Pool #002973
|
|
|
8.000
|
%
|
09/20/30
|
|
|
3,580
|
|
|
|
|
26,353
|
|
GNMA II Pool #003095
|
|
|
6.500
|
%
|
06/20/31
|
|
|
30,024
|
|
|
|
|
186,342
|
|
GNMA II Pool #004841
|
|
|
8.000
|
%
|
08/20/31
|
|
|
218,696
|
|
|
|
|
630,203
|
|
GNMA, Series 2010-44, Class NK
|
|
|
4.000
|
%
|
10/20/37
|
|
|
667,345
|
|
U.S. TREASURIES - 15.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
560,000
|
|
U.S. Treasury Bond
|
|
|
3.125
|
%
|
02/15/42
|
|
$
|
483,000
|
|
|
|
|
220,000
|
|
U.S. Treasury Note
|
|
|
3.875
|
%
|
05/15/18
|
|
|
242,550
|
|
|
|
|
850,000
|
|
U.S. Treasury Note
|
|
|
2.625
|
%
|
11/15/20
|
|
|
864,011
|
|
|
|
|
965,000
|
|
U.S. Treasury Strip Coupon
|
|
|
2.52-2.89
|
%
(2)
|
05/15/22
|
|
|
757,779
|
|
Total U.S. Government Interests (identified cost, $7,155,823)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,233,066
|
|
TOTAL FIXED INCOME INVESTMENTS (identified cost, $14,479,126) — 98.1%
|
|
|
|
|
|
|
|
|
|
|
|
$
|
15,152,002
|
|
SHORT-TERM INVESTMENTS - 2.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
397,621
|
|
Fidelity Government Money Market Fund, 0.01% (1)
|
|
|
|
|
|
|
$
|
397,621
|
|
TOTAL SHORT-TERM INVESTMENTS (identified cost, $397,621) — 2.6%
|
|
|
|
|
|
|
|
|
|
|
|
$
|
397,621
|
|
TOTAL INVESTMENTS (identified cost, $14,876,747) — 100.7%
|
|
|
|
|
|
|
|
|
|
|
|
$
|
15,549,623
|
|
LIABILITIES, IN EXCESS OF OTHER ASSETS — (0.7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
(107,214
|
)
|
NET ASSETS — 100.0%
|
|
|
|
|
|
|
|
|
|
|
|
$
|
15,442,409
|
|
FHLMC — Federal Home Loan Mortgage Corporation
FNMA — Federal National Mortgage Association
GNMA — Government National Mortgage Association
LLC — Limited Liability Company
LP — Limited Partnership
MTN — Medium Term Note
PLC — Public Limited Company
(1)
|
Variable rate security. Rate presented is as of December 31, 2013.
|
(2)
|
Rate presented is yield to maturity.
|
See Notes to Financial Statements.
47
Wright Total Return Bond Fund (WTRB)
STATEMENT OF ASSETS AND LIABILITIES
|
As of December 31, 2013
|
|
|
|
|
|
ASSETS:
|
|
|
TRUE
|
|
Investments, at value
|
|
|
|
|
(identified cost $14,876,747) (Note 1A)
|
|
$
|
15,549,623
|
######
|
Receivable for fund shares sold
|
|
|
48
|
|
Receivable for investment securities sold
|
|
|
2,394
|
|
Dividends and interest receivable
|
|
|
120,460
|
|
Prepaid expenses and other assets
|
|
|
16,075
|
|
Total assets
|
|
$
|
15,688,600
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Payable for fund shares reacquired
|
|
$
|
494
|
|
Payable for investment securities purchased
|
|
|
220,087
|
|
Distributions payable
|
|
|
10,543
|
|
Accrued expenses and other liabilities
|
|
|
15,067
|
|
Total liabilities
|
|
$
|
246,191
|
|
NET ASSETS
|
|
$
|
15,442,409
|
|
|
|
|
|
|
NET ASSETS CONSIST OF:
|
|
|
|
|
Paid-in capital
|
|
$
|
16,412,451
|
|
Accumulated net realized loss on investments
|
|
|
(1,642,918
|
)
|
Unrealized appreciation on investments
|
|
|
672,876
|
|
Net assets applicable to outstanding shares
|
|
$
|
15,442,409
|
|
|
|
|
|
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
|
|
1,233,596
|
|
|
|
|
|
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
|
$
|
12.52
|
|
|
|
|
|
|
STATEMENT OF OPERATIONS
|
For the Year Ended December 31, 2013
|
|
|
|
|
|
|
|
INVESTMENT INCOME (Note 1C)
|
|
|
TRUE
|
|
|
|
Interest income
|
|
$
|
686,846
|
|
|
1E
|
+07
|
Dividend income
|
|
|
15
|
|
|
|
|
Total investment income
|
|
$
|
686,861
|
|
|
|
|
|
|
|
|
|
Expenses –
|
|
|
|
|
|
|
|
Investment adviser fee (Note 3)
|
|
$
|
79,635
|
|
|
|
|
Administrator fee (Note 3)
|
|
|
12,388
|
|
|
|
|
Trustee expense (Note 3)
|
|
|
14,040
|
|
|
|
|
Custodian fee
|
|
|
1,683
|
|
|
|
|
Accountant fee
|
|
|
37,394
|
|
|
|
|
Pricing
|
|
|
27,797
|
|
|
|
|
Distribution expenses (Note 4)
|
|
|
44,241
|
|
|
|
|
Transfer agent fee
|
|
|
22,796
|
|
|
|
|
Printing
|
|
|
70
|
|
|
|
|
Shareholder communications
|
|
|
4,831
|
|
|
|
|
Audit services
|
|
|
20,000
|
|
|
|
|
Legal services
|
|
|
4,599
|
|
|
|
|
Compliance services
|
|
|
5,538
|
|
|
|
|
Registration costs
|
|
|
20,328
|
|
|
|
|
Interest expense (Note 8)
|
|
|
488
|
|
|
|
|
Miscellaneous
|
|
|
21,827
|
|
|
|
|
Total expenses
|
|
$
|
317,655
|
|
|
|
|
|
|
|
|
|
Deduct –
|
|
|
|
|
|
|
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
|
$
|
(149,053
|
)
|
|
|
|
Net expenses
|
|
$
|
168,602
|
|
|
|
|
Net investment income
|
|
$
|
518,259
|
|
|
|
|
|
|
|
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
|
|
|
|
|
Net realized gain on investment transactions
|
|
$
|
177,389
|
|
|
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
|
(1,134,346
|
)
|
|
|
|
Net realized and unrealized loss on investments
|
|
$
|
(956,957
|
)
|
|
|
|
Net decrease in net assets from operations
|
|
$
|
(438,698
|
)
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
48
Wright Total Return Bond Fund (WTRB)
|
|
|
Years Ended
|
|
STATEMENTS OF CHANGES IN NET ASSETS
|
|
December 31, 2013
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN NET ASSETS:
|
|
|
|
|
|
|
|
|
|
From operations –
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
518,259
|
|
|
$
|
822,138
|
|
|
0
|
Net realized gain on investment transactions
|
|
|
177,389
|
|
|
|
658,964
|
|
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
|
(1,134,346
|
)
|
|
|
(128,057
|
)
|
|
|
Net increase (decrease) in net assets from operations
|
|
$
|
(438,698
|
)
|
|
$
|
1,353,045
|
|
|
Distributions to shareholders (Note 2)
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(665,626
|
)
|
|
$
|
(1,124,326
|
)
|
|
|
Total distributions
|
|
$
|
(665,626
|
)
|
|
$
|
(1,124,326
|
)
|
|
Net decrease in net assets resulting from fund share transactions (Note 6)
|
|
$
|
(7,939,140
|
)
|
|
$
|
(6,366,170
|
)
|
|
Net decrease in net assets
|
|
$
|
(9,043,464
|
)
|
|
$
|
(6,137,451
|
)
|
|
##
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS:
|
|
|
|
|
|
|
|
|
|
|
At beginning of year
|
|
|
24,485,873
|
|
|
|
30,623,324
|
|
|
|
At end of year
|
|
$
|
15,442,409
|
|
|
$
|
24,485,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
49
Wright Total Return Bond Fund (WTRB)
These financial highlights reflect selected data for a share outstanding throughout each year.
|
|
|
|
|
|
|
Years Ended December 31,
|
FINANCIAL HIGHLIGHTS
|
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
$
|
13.300
|
|
$
|
13.220
|
|
$
|
12.890
|
|
$
|
12.620
|
|
$
|
11.990
|
|
Income (loss) from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
(1)
|
|
|
0.378
|
|
|
0.339
|
|
|
0.420
|
|
|
0.437
|
|
|
0.558
|
|
Net realized and unrealized gain (loss)
|
|
|
(0.673
|
)
|
|
0.206
|
|
|
0.425
|
|
|
0.336
|
|
|
0.676
|
|
|
Total income (loss) from investment operations
|
|
(0.295
|
)
|
|
0.545
|
|
|
0.845
|
|
|
0.773
|
|
|
1.234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.485
|
)
|
|
(0.465
|
)
|
|
(0.515
|
)
|
|
(0.503
|
)
|
|
(0.604
|
)
|
Net asset value, end of year
|
|
$
|
12.520
|
|
$
|
13.300
|
|
$
|
13.220
|
|
$
|
12.890
|
|
$
|
12.620
|
|
Total Return
(2)
|
|
|
(2.25
|
)%
|
|
4.16
|
%
|
|
6.68
|
%
|
|
6.18
|
%
|
|
10.53
|
%
|
Ratios/Supplemental Data
(3)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000 omitted)
|
|
$15,442
|
|
$24,486
|
|
$30,623
|
|
$31,530
|
|
$24,556
|
|
Ratios (As a percentage of average daily net assets):
|
Net expenses
|
|
|
0.95
|
%
|
0.95
|
%
|
0.95
|
%
|
0.83
|
%
|
0.70
|
%
|
Net expenses after custodian fee reduction
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
0.70
|
%
|
Net investment income
|
|
|
2.93
|
%
|
2.54
|
%
|
3.22
|
%
|
3.38
|
%
|
4.53
|
%
|
Portfolio turnover rate
|
|
|
46
|
%
|
68
|
%
|
55
|
%
|
119
|
%
|
61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
For the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
|
|
|
|
|
|
|
(1)
|
Computed using average shares outstanding.
|
(2)
|
Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date.
|
(3)
|
For each of the years presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income ratios would have been as follows:
|
|
|
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
|
Ratios (As a percentage of average daily net assets):
|
Expenses
|
|
|
1.80
|
%
|
|
1.41
|
%
|
|
1.37
|
%
|
|
1.43
|
%
|
|
1.55
|
%
|
Expenses after custodian fee reduction
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
1.55
|
%
|
Net investment income
|
|
|
2.08
|
%
|
|
2.08
|
%
|
|
2.80
|
%
|
|
2.78
|
%
|
|
3.68
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
50
Wright Current Income Fund (WCIF)
Schedule of Investments - As of December 31, 2013
AFA
|
|
Face Amount
|
|
Description
|
|
Coupon Rate
|
|
Maturity Date
|
|
Value
|
|
FIXED INCOME INVESTMENTS - 95.9%
|
|
|
|
|
|
|
|
|
|
|
|
AGENCY MORTGAGE-BACKED SECURITIES - 95.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
234,994
|
|
FHLMC Gold Pool #A85905
|
|
|
5.000
|
%
|
05/01/39
|
|
$
|
255,241
|
|
|
|
|
13,236
|
|
FHLMC Gold Pool #C00548
|
|
|
7.000
|
%
|
08/01/27
|
|
|
15,021
|
|
|
|
|
37,246
|
|
FHLMC Gold Pool #C00778
|
|
|
7.000
|
%
|
06/01/29
|
|
|
41,564
|
|
|
|
|
194,574
|
|
FHLMC Gold Pool #C01375
|
|
|
6.500
|
%
|
07/01/32
|
|
|
218,578
|
|
|
|
|
142,490
|
|
FHLMC Gold Pool #C91034
|
|
|
6.000
|
%
|
06/01/27
|
|
|
159,847
|
|
|
|
|
13,786
|
|
FHLMC Gold Pool #D81642
|
|
|
7.500
|
%
|
08/01/27
|
|
|
14,224
|
|
|
|
|
48,995
|
|
FHLMC Gold Pool #D82572
|
|
|
7.000
|
%
|
09/01/27
|
|
|
55,199
|
|
|
|
|
2,466
|
|
FHLMC Gold Pool #E00678
|
|
|
6.500
|
%
|
06/01/14
|
|
|
2,490
|
|
|
|
|
2,950
|
|
FHLMC Gold Pool #E00721
|
|
|
6.500
|
%
|
07/01/14
|
|
|
2,981
|
|
|
|
|
13,385
|
|
FHLMC Gold Pool #E81704
|
|
|
8.500
|
%
|
05/01/15
|
|
|
13,823
|
|
|
|
|
203,170
|
|
FHLMC Gold Pool #G00892
|
|
|
6.500
|
%
|
12/01/27
|
|
|
230,170
|
|
|
|
|
109,833
|
|
FHLMC Gold Pool #G02809
|
|
|
6.500
|
%
|
05/01/36
|
|
|
123,562
|
|
|
|
|
78,223
|
|
FHLMC Gold Pool #G04710
|
|
|
6.000
|
%
|
09/01/38
|
|
|
86,505
|
|
|
|
|
104,257
|
|
FHLMC Gold Pool #G08012
|
|
|
6.500
|
%
|
09/01/34
|
|
|
117,057
|
|
|
|
|
216,166
|
|
FHLMC Gold Pool #G08022
|
|
|
6.000
|
%
|
11/01/34
|
|
|
242,027
|
|
|
|
|
176,583
|
|
FHLMC Gold Pool #G08047
|
|
|
6.000
|
%
|
03/01/35
|
|
|
198,094
|
|
|
|
|
810,721
|
|
FHLMC Gold Pool #G08378
|
|
|
6.000
|
%
|
10/01/39
|
|
|
926,776
|
|
|
|
|
787,525
|
|
FHLMC Gold Pool #G30482
|
|
|
4.500
|
%
|
05/01/30
|
|
|
847,466
|
|
|
|
|
155,932
|
|
FHLMC Gold Pool #G80111
|
|
|
7.300
|
%
|
12/17/22
|
|
|
172,424
|
|
|
|
|
41,320
|
|
FHLMC Gold Pool #H09098
|
|
|
6.500
|
%
|
10/01/37
|
|
|
44,471
|
|
|
|
|
187,112
|
|
FHLMC Gold Pool #P00024
|
|
|
7.000
|
%
|
09/01/32
|
|
|
210,857
|
|
|
|
|
130,974
|
|
FHLMC Gold Pool #P50019
|
|
|
7.000
|
%
|
07/01/24
|
|
|
148,001
|
|
|
|
|
353,085
|
|
FHLMC Gold Pool #T30126
|
|
|
5.550
|
%
|
07/01/37
|
|
|
405,562
|
|
|
|
|
247,911
|
|
FHLMC Gold Pool #T30133
|
|
|
5.550
|
%
|
07/01/37
|
|
|
286,371
|
|
|
|
|
486,122
|
|
FHLMC Gold Pool #U30400
|
|
|
5.550
|
%
|
06/01/37
|
|
|
562,360
|
|
|
|
|
409,899
|
|
FHLMC, Series 2097, Class PZ
|
|
|
6.000
|
%
|
11/15/28
|
|
|
457,788
|
|
|
|
|
62,748
|
|
FHLMC, Series 2176, Class OJ
|
|
|
7.000
|
%
|
08/15/29
|
|
|
71,756
|
|
|
|
|
43,549
|
|
FHLMC, Series 2201, Class C
|
|
|
8.000
|
%
|
11/15/29
|
|
|
51,128
|
|
|
|
|
199,077
|
|
FHLMC, Series 2218, Class ZB
|
|
|
6.000
|
%
|
03/15/30
|
|
|
220,940
|
|
|
|
|
88,262
|
|
FHLMC, Series 2259, Class ZM
|
|
|
7.000
|
%
|
10/15/30
|
|
|
101,885
|
|
|
|
|
51,915
|
|
FHLMC, Series 2576, Class HC
|
|
|
5.500
|
%
|
03/15/33
|
|
|
56,971
|
|
|
|
|
150,000
|
|
FHLMC, Series 2802, Class OH
|
|
|
6.000
|
%
|
05/15/34
|
|
|
166,950
|
|
|
|
|
412,486
|
|
FHLMC, Series 3033, Class WY
|
|
|
5.500
|
%
|
09/15/35
|
|
|
444,441
|
|
|
|
|
182,899
|
|
FHLMC, Series 3072, Class DL
|
|
|
6.000
|
%
|
02/15/35
|
|
|
202,550
|
|
|
|
|
113,630
|
|
FHLMC, Series 3255, Class QE
|
|
|
5.500
|
%
|
12/15/36
|
|
|
124,830
|
|
|
|
|
140,026
|
|
FHLMC, Series 3641, Class TB
|
|
|
4.500
|
%
|
03/15/40
|
|
|
145,820
|
|
|
|
|
108,025
|
|
FHLMC, Series 3814, Class B
|
|
|
3.000
|
%
|
02/15/26
|
|
|
105,827
|
|
|
|
|
208,354
|
|
FHLMC, Series 4011, Class DA
|
|
|
4.000
|
%
|
09/15/41
|
|
|
201,896
|
|
|
|
|
357,651
|
|
FHLMC, Series 4097, Class VT
|
|
|
3.500
|
%
|
08/15/25
|
|
|
371,406
|
|
|
|
|
96,673
|
|
FHLMC, Series 4103, Class DV
|
|
|
3.000
|
%
|
11/15/25
|
|
|
97,208
|
|
|
|
|
1,889,168
|
|
FHLMC, Series 4142, Class PN
|
|
|
2.500
|
%
|
12/15/32
|
|
|
1,761,146
|
|
|
|
|
131,143
|
|
FHLMC-GNMA, Series 15, Class L
|
|
|
7.000
|
%
|
07/25/23
|
|
|
148,651
|
|
|
|
|
48,832
|
|
FHLMC-GNMA, Series 23, Class KZ
|
|
|
6.500
|
%
|
11/25/23
|
|
|
54,987
|
|
|
|
|
83,973
|
|
FHLMC-GNMA, Series 4, Class D
|
|
|
8.000
|
%
|
12/25/22
|
|
|
96,907
|
|
|
|
|
370,111
|
|
FNMA Pool #252034
|
|
|
7.000
|
%
|
09/01/28
|
|
|
420,107
|
|
|
|
|
68,204
|
|
FNMA Pool #252215
|
|
|
6.000
|
%
|
11/01/28
|
|
|
76,660
|
|
|
|
|
526,697
|
|
FNMA Pool #256182
|
|
|
6.000
|
%
|
03/01/36
|
|
|
580,283
|
|
|
|
|
78,276
|
|
FNMA Pool #256972
|
|
|
6.000
|
%
|
11/01/37
|
|
|
84,401
|
|
|
|
|
431,619
|
|
FNMA Pool #257138
|
|
|
5.000
|
%
|
03/01/38
|
|
|
459,565
|
|
|
|
|
17,430
|
|
FNMA Pool #535131
|
|
|
6.000
|
%
|
03/01/29
|
|
|
19,614
|
|
|
|
|
102,555
|
|
FNMA Pool #594207
|
|
|
6.500
|
%
|
02/01/31
|
|
|
115,693
|
|
|
|
|
41,160
|
|
FNMA Pool #673315
|
|
|
5.500
|
%
|
11/01/32
|
|
|
45,256
|
|
|
|
|
212,889
|
|
FNMA Pool #721255
|
|
|
5.500
|
%
|
07/01/33
|
|
|
235,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
51
Wright Current Income Fund (WCIF)
Schedule of Investments - As of December 31, 2013
|
|
Face Amount
|
|
Description
|
|
Coupon Rate
|
|
Maturity Date
|
|
Value
|
|
|
|
$
|
56,306
|
|
FNMA Pool #733750
|
|
|
6.310
|
%
|
10/01/32
|
|
$
|
62,561
|
|
|
|
|
201,901
|
|
FNMA Pool #735861
|
|
|
6.500
|
%
|
09/01/33
|
|
|
230,272
|
|
|
|
|
281,012
|
|
FNMA Pool #745001
|
|
|
6.500
|
%
|
09/01/35
|
|
|
314,947
|
|
|
|
|
476,573
|
|
FNMA Pool #745318
|
|
|
5.000
|
%
|
12/01/34
|
|
|
522,727
|
|
|
|
|
34,646
|
|
FNMA Pool #745630
|
|
|
5.500
|
%
|
01/01/29
|
|
|
38,149
|
|
|
|
|
98,327
|
|
FNMA Pool #801357
|
|
|
5.500
|
%
|
08/01/34
|
|
|
109,040
|
|
|
|
|
475,670
|
|
FNMA Pool #801506
|
|
|
4.750
|
%
|
09/01/34
|
|
|
504,780
|
|
|
|
|
112,555
|
|
FNMA Pool #813839
|
|
|
6.000
|
%
|
11/01/34
|
|
|
124,860
|
|
|
|
|
499,235
|
|
FNMA Pool #819457
|
|
|
4.750
|
%
|
02/01/35
|
|
|
529,859
|
|
|
|
|
1,038,028
|
|
FNMA Pool #846323
|
|
|
4.250
|
%
|
11/01/35
|
|
|
1,086,323
|
|
|
|
|
537,278
|
|
FNMA Pool #851655
|
|
|
6.000
|
%
|
12/01/35
|
|
|
604,197
|
|
|
|
|
617,995
|
|
FNMA Pool #851762
|
|
|
4.250
|
%
|
01/01/36
|
|
|
637,591
|
|
|
|
|
101,510
|
|
FNMA Pool #871394
|
|
|
7.000
|
%
|
04/01/21
|
|
|
110,946
|
|
|
|
|
176,698
|
|
FNMA Pool #888211
|
|
|
7.000
|
%
|
08/01/36
|
|
|
202,206
|
|
|
|
|
56,092
|
|
FNMA Pool #888367
|
|
|
7.000
|
%
|
03/01/37
|
|
|
63,574
|
|
|
|
|
113,446
|
|
FNMA Pool #888534
|
|
|
5.000
|
%
|
08/01/37
|
|
|
120,802
|
|
|
|
|
1,323,992
|
|
FNMA Pool #891367
|
|
|
4.750
|
%
|
04/01/36
|
|
|
1,421,614
|
|
|
|
|
306,734
|
|
FNMA Pool #908160
|
|
|
5.500
|
%
|
12/01/36
|
|
|
327,287
|
|
|
|
|
261,003
|
|
FNMA Pool #930504
|
|
|
5.000
|
%
|
02/01/39
|
|
|
281,857
|
|
|
|
|
112,361
|
|
FNMA Pool #930664
|
|
|
6.500
|
%
|
03/01/39
|
|
|
127,741
|
|
|
|
|
589,479
|
|
FNMA Pool #940441
|
|
|
5.780
|
%
|
03/01/37
|
|
|
648,698
|
|
|
|
|
51,140
|
|
FNMA Pool #954957
|
|
|
6.000
|
%
|
10/01/37
|
|
|
55,015
|
|
|
|
|
112,870
|
|
FNMA Pool #995346
|
|
|
6.500
|
%
|
09/01/36
|
|
|
125,655
|
|
|
|
|
282,614
|
|
FNMA Pool #995656
|
|
|
7.000
|
%
|
06/01/33
|
|
|
323,832
|
|
|
|
|
666,785
|
|
FNMA Pool #AD0329
|
|
|
6.500
|
%
|
09/01/28
|
|
|
741,372
|
|
|
|
|
137,048
|
|
FNMA Pool #AD0756
|
|
|
6.500
|
%
|
11/01/28
|
|
|
154,130
|
|
|
|
|
517,743
|
|
FNMA Pool #AL3036
|
|
|
6.000
|
%
|
02/01/38
|
|
|
581,731
|
|
|
|
|
189,000
|
|
FNMA Whole Loan, Series 2003-W17, Class 1A7
|
|
|
5.750
|
%
|
08/25/33
|
|
|
205,515
|
|
|
|
|
58,345
|
|
FNMA Whole Loan, Series 2003-W18, Class 1A6
|
|
|
5.370
|
%
|
08/25/43
|
|
|
59,938
|
|
|
|
|
329,077
|
|
FNMA Whole Loan, Series 2004-W11, Class 1A1
|
|
|
6.000
|
%
|
05/25/44
|
|
|
383,409
|
|
|
|
|
234,374
|
|
FNMA, Series 1993-23, Class PZ
|
|
|
7.500
|
%
|
03/25/23
|
|
|
266,202
|
|
|
|
|
218,854
|
|
FNMA, Series 2001-52, Class XZ
|
|
|
6.500
|
%
|
10/25/31
|
|
|
248,106
|
|
|
|
|
105,163
|
|
FNMA, Series 2001-52, Class YZ
|
|
|
6.500
|
%
|
10/25/31
|
|
|
118,327
|
|
|
|
|
100,371
|
|
FNMA, Series 2002-15, Class QH
|
|
|
6.000
|
%
|
04/25/32
|
|
|
111,655
|
|
|
|
|
90,850
|
|
FNMA, Series 2002-30, Class JQ
|
|
|
5.500
|
%
|
04/25/33
|
|
|
99,498
|
|
|
|
|
457,481
|
|
FNMA, Series 2002-77, Class Z
|
|
|
5.500
|
%
|
12/25/32
|
|
|
498,364
|
|
|
|
|
498,868
|
|
FNMA, Series 2003-32, Class BZ
|
|
|
6.000
|
%
|
11/25/32
|
|
|
559,054
|
|
|
|
|
231,824
|
|
FNMA, Series 2004-17, Class H
|
|
|
5.500
|
%
|
04/25/34
|
|
|
251,260
|
|
|
|
|
285,000
|
|
FNMA, Series 2004-25, Class LC
|
|
|
5.500
|
%
|
04/25/34
|
|
|
310,103
|
|
|
|
|
256,000
|
|
FNMA, Series 2004-25, Class UC
|
|
|
5.500
|
%
|
04/25/34
|
|
|
274,732
|
|
|
|
|
132,235
|
|
FNMA, Series 2005-106, Class UK
|
|
|
5.500
|
%
|
12/25/35
|
|
|
139,092
|
|
|
|
|
172,000
|
|
FNMA, Series 2005-120, Class PB
|
|
|
6.000
|
%
|
01/25/36
|
|
|
188,685
|
|
|
|
|
246,929
|
|
FNMA, Series 2005-58, Class BC
|
|
|
5.500
|
%
|
07/25/25
|
|
|
273,506
|
|
|
|
|
650,000
|
|
FNMA, Series 2006-74, Class PD
|
|
|
6.500
|
%
|
08/25/36
|
|
|
754,738
|
|
|
|
|
476,298
|
|
FNMA, Series 2007-76, Class PE
|
|
|
6.000
|
%
|
08/25/37
|
|
|
524,641
|
|
|
|
|
800,000
|
|
FNMA, Series 2007-81, Class GE
|
|
|
6.000
|
%
|
08/25/37
|
|
|
886,504
|
|
|
|
|
850,000
|
|
FNMA, Series 2008-60, Class JC
|
|
|
5.000
|
%
|
07/25/38
|
|
|
931,880
|
|
|
|
|
88,282
|
|
FNMA, Series 2008-86, Class GD
|
|
|
6.000
|
%
|
03/25/36
|
|
|
94,343
|
|
|
|
|
150,000
|
|
FNMA, Series 2009-50, Class AX
|
|
|
5.000
|
%
|
07/25/39
|
|
|
161,985
|
|
|
|
|
210,000
|
|
FNMA, Series 2011-37, Class LH
|
|
|
4.000
|
%
|
11/25/40
|
|
|
215,661
|
|
|
|
|
304,607
|
|
FNMA, Series 2012-51, Class B
|
|
|
7.000
|
%
|
05/25/42
|
|
|
339,308
|
|
|
|
|
410,791
|
|
FNMA, Series 2013-17, Class YM
|
|
|
4.000
|
%
|
03/25/33
|
|
|
422,922
|
|
|
|
|
240,878
|
|
FNMA, Series G92-43, Class Z
|
|
|
7.500
|
%
|
07/25/22
|
|
|
277,231
|
|
|
|
|
163,034
|
|
FNMA, Series G93-5, Class Z
|
|
|
6.500
|
%
|
02/25/23
|
|
|
186,186
|
|
|
|
|
531
|
|
GNMA I Pool #177784
|
|
|
8.000
|
%
|
10/15/16
|
|
|
534
|
|
|
|
|
4,921
|
|
GNMA I Pool #192357
|
|
|
8.000
|
%
|
04/15/17
|
|
|
4,950
|
|
|
|
|
427
|
|
GNMA I Pool #196063
|
|
|
8.500
|
%
|
03/15/17
|
|
|
459
|
|
See Notes to Financial Statements.
52
Wright Current Income Fund (WCIF)
Schedule of Investments - As of December 31, 2013
|
|
Face Amount
|
|
Description
|
|
Coupon Rate
|
|
Maturity Date
|
|
Value
|
|
|
|
$
|
564
|
|
GNMA I Pool #212601
|
|
|
8.500
|
%
|
06/15/17
|
|
$
|
568
|
|
|
|
|
769
|
|
GNMA I Pool #220917
|
|
|
8.500
|
%
|
04/15/17
|
|
|
798
|
|
|
|
|
1,483
|
|
GNMA I Pool #230223
|
|
|
9.500
|
%
|
04/15/18
|
|
|
1,493
|
|
|
|
|
2,133
|
|
GNMA I Pool #260999
|
|
|
9.500
|
%
|
09/15/18
|
|
|
2,212
|
|
|
|
|
3,330
|
|
GNMA I Pool #263439
|
|
|
10.000
|
%
|
02/15/19
|
|
|
3,354
|
|
|
|
|
960
|
|
GNMA I Pool #265267
|
|
|
9.500
|
%
|
08/15/20
|
|
|
967
|
|
|
|
|
478
|
|
GNMA I Pool #266983
|
|
|
10.000
|
%
|
02/15/19
|
|
|
482
|
|
|
|
|
519
|
|
GNMA I Pool #286556
|
|
|
9.000
|
%
|
03/15/20
|
|
|
522
|
|
|
|
|
332
|
|
GNMA I Pool #301366
|
|
|
8.500
|
%
|
06/15/21
|
|
|
334
|
|
|
|
|
2,749
|
|
GNMA I Pool #302933
|
|
|
8.500
|
%
|
06/15/21
|
|
|
3,088
|
|
|
|
|
1,279
|
|
GNMA I Pool #315187
|
|
|
8.000
|
%
|
06/15/22
|
|
|
1,286
|
|
|
|
|
16,251
|
|
GNMA I Pool #319441
|
|
|
8.500
|
%
|
04/15/22
|
|
|
16,474
|
|
|
|
|
3,597
|
|
GNMA I Pool #325165
|
|
|
8.000
|
%
|
06/15/22
|
|
|
4,018
|
|
|
|
|
4,334
|
|
GNMA I Pool #335950
|
|
|
8.000
|
%
|
10/15/22
|
|
|
4,359
|
|
|
|
|
74,139
|
|
GNMA I Pool #346987
|
|
|
7.000
|
%
|
12/15/23
|
|
|
81,942
|
|
|
|
|
25,109
|
|
GNMA I Pool #352001
|
|
|
6.500
|
%
|
12/15/23
|
|
|
28,079
|
|
|
|
|
8,677
|
|
GNMA I Pool #352110
|
|
|
7.000
|
%
|
08/15/23
|
|
|
9,558
|
|
|
|
|
37,929
|
|
GNMA I Pool #368238
|
|
|
7.000
|
%
|
12/15/23
|
|
|
38,528
|
|
|
|
|
21,259
|
|
GNMA I Pool #372379
|
|
|
8.000
|
%
|
10/15/26
|
|
|
22,381
|
|
|
|
|
35,589
|
|
GNMA I Pool #399726
|
|
|
7.490
|
%
|
05/15/25
|
|
|
36,141
|
|
|
|
|
85,352
|
|
GNMA I Pool #399788
|
|
|
7.490
|
%
|
09/15/25
|
|
|
96,144
|
|
|
|
|
24,515
|
|
GNMA I Pool #399958
|
|
|
7.490
|
%
|
02/15/27
|
|
|
24,652
|
|
|
|
|
34,767
|
|
GNMA I Pool #410215
|
|
|
7.500
|
%
|
12/15/25
|
|
|
39,609
|
|
|
|
|
2,549
|
|
GNMA I Pool #414736
|
|
|
7.500
|
%
|
11/15/25
|
|
|
2,877
|
|
|
|
|
10,303
|
|
GNMA I Pool #420707
|
|
|
7.000
|
%
|
02/15/26
|
|
|
11,494
|
|
|
|
|
8,240
|
|
GNMA I Pool #421829
|
|
|
7.500
|
%
|
04/15/26
|
|
|
9,312
|
|
|
|
|
3,170
|
|
GNMA I Pool #431036
|
|
|
8.000
|
%
|
07/15/26
|
|
|
3,333
|
|
|
|
|
12,408
|
|
GNMA I Pool #431612
|
|
|
8.000
|
%
|
11/15/26
|
|
|
12,678
|
|
|
|
|
3,889
|
|
GNMA I Pool #442190
|
|
|
8.000
|
%
|
12/15/26
|
|
|
4,422
|
|
|
|
|
29,093
|
|
GNMA I Pool #448970
|
|
|
8.000
|
%
|
08/15/27
|
|
|
33,412
|
|
|
|
|
6,604
|
|
GNMA I Pool #449176
|
|
|
6.500
|
%
|
07/15/28
|
|
|
7,375
|
|
|
|
|
8,878
|
|
GNMA I Pool #462623
|
|
|
6.500
|
%
|
03/15/28
|
|
|
9,921
|
|
|
|
|
30,841
|
|
GNMA I Pool #471369
|
|
|
5.500
|
%
|
05/15/33
|
|
|
33,903
|
|
|
|
|
113,340
|
|
GNMA I Pool #487108
|
|
|
6.000
|
%
|
04/15/29
|
|
|
127,045
|
|
|
|
|
93,185
|
|
GNMA I Pool #489377
|
|
|
6.375
|
%
|
03/15/29
|
|
|
103,833
|
|
|
|
|
244,747
|
|
GNMA I Pool #503405
|
|
|
6.500
|
%
|
04/15/29
|
|
|
273,548
|
|
|
|
|
75,489
|
|
GNMA I Pool #509930
|
|
|
5.500
|
%
|
06/15/29
|
|
|
83,103
|
|
|
|
|
104,519
|
|
GNMA I Pool #509965
|
|
|
5.500
|
%
|
06/15/29
|
|
|
115,046
|
|
|
|
|
12,587
|
|
GNMA I Pool #538314
|
|
|
7.000
|
%
|
02/15/32
|
|
|
14,308
|
|
|
|
|
29,531
|
|
GNMA I Pool #595606
|
|
|
6.000
|
%
|
11/15/32
|
|
|
32,920
|
|
|
|
|
6,046
|
|
GNMA I Pool #602377
|
|
|
4.500
|
%
|
06/15/18
|
|
|
6,437
|
|
|
|
|
6,200
|
|
GNMA I Pool #603377
|
|
|
4.500
|
%
|
01/15/18
|
|
|
6,598
|
|
|
|
|
271,317
|
|
GNMA I Pool #615272
|
|
|
4.500
|
%
|
07/15/33
|
|
|
294,093
|
|
|
|
|
87,605
|
|
GNMA I Pool #615403
|
|
|
4.500
|
%
|
08/15/33
|
|
|
94,795
|
|
|
|
|
61,011
|
|
GNMA I Pool #616829
|
|
|
5.500
|
%
|
01/15/25
|
|
|
67,184
|
|
|
|
|
68,287
|
|
GNMA I Pool #623190
|
|
|
6.000
|
%
|
12/15/23
|
|
|
76,289
|
|
|
|
|
241,290
|
|
GNMA I Pool #624600
|
|
|
6.150
|
%
|
01/15/34
|
|
|
268,958
|
|
|
|
|
54,017
|
|
GNMA I Pool #640940
|
|
|
5.500
|
%
|
05/15/35
|
|
|
61,314
|
|
|
|
|
24,247
|
|
GNMA I Pool #658267
|
|
|
6.500
|
%
|
02/15/22
|
|
|
26,351
|
|
|
|
|
43,229
|
|
GNMA I Pool #677162
|
|
|
5.500
|
%
|
08/15/23
|
|
|
46,473
|
|
|
|
|
285,986
|
|
GNMA I Pool #697999
|
|
|
4.500
|
%
|
02/15/24
|
|
|
304,634
|
|
|
|
|
674,298
|
|
GNMA I Pool #711286
|
|
|
6.500
|
%
|
10/15/32
|
|
|
752,780
|
|
|
|
|
480,424
|
|
GNMA I Pool #733602
|
|
|
5.000
|
%
|
04/15/40
|
|
|
536,100
|
|
|
|
|
22,008
|
|
GNMA I Pool #780429
|
|
|
7.500
|
%
|
09/15/26
|
|
|
25,744
|
|
|
|
|
120,856
|
|
GNMA I Pool #780492
|
|
|
7.000
|
%
|
09/15/24
|
|
|
136,647
|
|
|
|
|
57,307
|
|
GNMA I Pool #780685
|
|
|
6.500
|
%
|
12/15/27
|
|
|
66,507
|
|
|
|
|
77,880
|
|
GNMA I Pool #780977
|
|
|
7.500
|
%
|
12/15/28
|
|
|
91,269
|
|
See Notes to Financial Statements.
53
Wright Current Income Fund (WCIF)
Schedule of Investments - As of December 31, 2013
|
|
Face Amount
|
|
Description
|
|
Coupon Rate
|
|
Maturity Date
|
|
Value
|
|
|
|
$
|
189,313
|
|
GNMA I Pool #781120
|
|
|
7.000
|
%
|
12/15/29
|
|
$
|
221,376
|
|
|
|
|
205,386
|
|
GNMA I Pool #782771
|
|
|
4.500
|
%
|
09/15/24
|
|
|
218,608
|
|
|
|
|
195,994
|
|
GNMA I Pool #AB1821
|
|
|
3.250
|
%
|
10/15/42
|
|
|
190,020
|
|
|
|
|
11,340
|
|
GNMA II Pool #000723
|
|
|
7.500
|
%
|
01/20/23
|
|
|
12,577
|
|
|
|
|
1,083
|
|
GNMA II Pool #001596
|
|
|
9.000
|
%
|
04/20/21
|
|
|
1,222
|
|
|
|
|
17,484
|
|
GNMA II Pool #002268
|
|
|
7.500
|
%
|
08/20/26
|
|
|
20,613
|
|
|
|
|
46,418
|
|
GNMA II Pool #002442
|
|
|
6.500
|
%
|
06/20/27
|
|
|
51,455
|
|
|
|
|
2,593
|
|
GNMA II Pool #002855
|
|
|
8.500
|
%
|
12/20/29
|
|
|
3,033
|
|
|
|
|
61,542
|
|
GNMA II Pool #003284
|
|
|
5.500
|
%
|
09/20/32
|
|
|
68,322
|
|
|
|
|
109,507
|
|
GNMA II Pool #003346
|
|
|
5.500
|
%
|
02/20/33
|
|
|
122,002
|
|
|
|
|
37,127
|
|
GNMA II Pool #003401
|
|
|
4.500
|
%
|
06/20/33
|
|
|
40,069
|
|
|
|
|
254,462
|
|
GNMA II Pool #003403
|
|
|
5.500
|
%
|
06/20/33
|
|
|
283,499
|
|
|
|
|
60,721
|
|
GNMA II Pool #003554
|
|
|
4.500
|
%
|
05/20/34
|
|
|
65,526
|
|
|
|
|
172,967
|
|
GNMA II Pool #003689
|
|
|
4.500
|
%
|
03/20/35
|
|
|
186,659
|
|
|
|
|
338,601
|
|
GNMA II Pool #003931
|
|
|
6.000
|
%
|
12/20/36
|
|
|
381,533
|
|
|
|
|
16,649
|
|
GNMA II Pool #004149
|
|
|
7.500
|
%
|
05/20/38
|
|
|
19,098
|
|
|
|
|
29,278
|
|
GNMA II Pool #004284
|
|
|
5.500
|
%
|
11/20/38
|
|
|
31,038
|
|
|
|
|
281,511
|
|
GNMA II Pool #004291
|
|
|
6.000
|
%
|
11/20/38
|
|
|
317,014
|
|
|
|
|
122,118
|
|
GNMA II Pool #004412
|
|
|
5.000
|
%
|
04/20/39
|
|
|
128,832
|
|
|
|
|
349,171
|
|
GNMA II Pool #004561
|
|
|
6.000
|
%
|
10/20/39
|
|
|
393,595
|
|
|
|
|
330,181
|
|
GNMA II Pool #004702
|
|
|
3.500
|
%
|
06/20/25
|
|
|
345,040
|
|
|
|
|
65,760
|
|
GNMA II Pool #004752
|
|
|
7.500
|
%
|
11/20/38
|
|
|
74,698
|
|
|
|
|
368,971
|
|
GNMA II Pool #004753
|
|
|
8.000
|
%
|
08/20/30
|
|
|
424,116
|
|
|
|
|
249,884
|
|
GNMA II Pool #004805
|
|
|
6.500
|
%
|
09/20/40
|
|
|
286,819
|
|
|
|
|
85,506
|
|
GNMA II Pool #004808
|
|
|
8.000
|
%
|
01/20/31
|
|
|
96,815
|
|
|
|
|
1,146,282
|
|
GNMA II Pool #004838
|
|
|
6.500
|
%
|
10/20/40
|
|
|
1,290,403
|
|
|
|
|
218,066
|
|
GNMA II Pool #004993
|
|
|
7.000
|
%
|
03/20/41
|
|
|
259,965
|
|
|
|
|
90,030
|
|
GNMA II Pool #575787
|
|
|
5.760
|
%
|
03/20/33
|
|
|
102,680
|
|
|
|
|
200,129
|
|
GNMA II Pool #610116
|
|
|
5.760
|
%
|
04/20/33
|
|
|
227,587
|
|
|
|
|
65,008
|
|
GNMA II Pool #610143
|
|
|
5.760
|
%
|
06/20/33
|
|
|
72,314
|
|
|
|
|
68,999
|
|
GNMA II Pool #612121
|
|
|
5.760
|
%
|
07/20/33
|
|
|
76,667
|
|
|
|
|
211,324
|
|
GNMA II Pool #648541
|
|
|
6.000
|
%
|
10/20/35
|
|
|
234,911
|
|
|
|
|
305,096
|
|
GNMA II Pool #719213
|
|
|
6.500
|
%
|
02/20/33
|
|
|
339,364
|
|
|
|
|
128,938
|
|
GNMA II Pool #748939
|
|
|
4.000
|
%
|
09/20/40
|
|
|
135,167
|
|
|
|
|
523,573
|
|
GNMA, Series 1998-21, Class ZB
|
|
|
6.500
|
%
|
09/20/28
|
|
|
597,458
|
|
|
|
|
127,314
|
|
GNMA, Series 1999-25, Class TB
|
|
|
7.500
|
%
|
07/16/29
|
|
|
147,990
|
|
|
|
|
434,362
|
|
GNMA, Series 1999-4, Class ZB
|
|
|
6.000
|
%
|
02/20/29
|
|
|
485,739
|
|
|
|
|
171,495
|
|
GNMA, Series 2000-14, Class PD
|
|
|
7.000
|
%
|
02/16/30
|
|
|
198,916
|
|
|
|
|
650,000
|
|
GNMA, Series 2001-53, Class PB
|
|
|
6.500
|
%
|
11/20/31
|
|
|
757,692
|
|
|
|
|
303,306
|
|
GNMA, Series 2002-22, Class GF
|
|
|
6.500
|
%
|
03/20/32
|
|
|
346,854
|
|
|
|
|
284,873
|
|
GNMA, Series 2002-33, Class ZD
|
|
|
6.000
|
%
|
05/16/32
|
|
|
320,142
|
|
|
|
|
114,438
|
|
GNMA, Series 2002-40, Class UK
|
|
|
6.500
|
%
|
06/20/32
|
|
|
130,850
|
|
|
|
|
88,718
|
|
GNMA, Series 2002-45, Class QE
|
|
|
6.500
|
%
|
06/20/32
|
|
|
101,402
|
|
|
|
|
153,747
|
|
GNMA, Series 2002-6, Class GE
|
|
|
6.500
|
%
|
01/20/32
|
|
|
175,806
|
|
|
|
|
76,080
|
|
GNMA, Series 2002-7, Class PG
|
|
|
6.500
|
%
|
01/20/32
|
|
|
86,153
|
|
|
|
|
207,750
|
|
GNMA, Series 2003-103, Class PC
|
|
|
5.500
|
%
|
11/20/33
|
|
|
228,453
|
|
|
|
|
136,000
|
|
GNMA, Series 2003-26, Class MA
|
|
|
5.500
|
%
|
03/20/33
|
|
|
150,582
|
|
|
|
|
154,000
|
|
GNMA, Series 2003-46, Class HA
|
|
|
4.500
|
%
|
06/20/33
|
|
|
166,534
|
|
|
|
|
179,000
|
|
GNMA, Series 2003-46, Class MA
|
|
|
5.000
|
%
|
05/20/33
|
|
|
191,814
|
|
|
|
|
503,000
|
|
GNMA, Series 2003-46, Class ND
|
|
|
5.000
|
%
|
06/20/33
|
|
|
566,021
|
|
|
|
|
575,000
|
|
GNMA, Series 2003-57, Class C
|
|
|
4.500
|
%
|
04/20/33
|
|
|
622,236
|
|
|
|
|
111,000
|
|
GNMA, Series 2003-84, Class PC
|
|
|
5.500
|
%
|
10/20/33
|
|
|
123,819
|
|
|
|
|
113,132
|
|
GNMA, Series 2004-16, Class GB
|
|
|
5.500
|
%
|
06/20/33
|
|
|
121,135
|
|
|
|
|
119,058
|
|
GNMA, Series 2004-63, Class AG
|
|
|
6.000
|
%
|
07/20/32
|
|
|
133,689
|
|
|
|
|
211,000
|
|
GNMA, Series 2005-13, Class BE
|
|
|
5.000
|
%
|
09/20/34
|
|
|
229,997
|
|
|
|
|
895,942
|
|
GNMA, Series 2005-17, Class GE
|
|
|
5.000
|
%
|
02/20/35
|
|
|
996,810
|
|
|
|
|
364,000
|
|
GNMA, Series 2005-49, Class B
|
|
|
5.500
|
%
|
06/20/35
|
|
|
403,442
|
|
See Notes to Financial Statements.
54
Wright Current Income Fund (WCIF)
Schedule of Investments - As of December 31, 2013
|
|
Face Amount
|
|
Description
|
|
Coupon Rate
|
|
Maturity Date
|
|
Value
|
|
|
|
$
|
227,000
|
|
GNMA, Series 2005-51, Class DC
|
|
|
5.000
|
%
|
07/20/35
|
|
$
|
254,458
|
|
|
|
|
100,000
|
|
GNMA, Series 2005-93, Class BH
|
|
|
5.500
|
%
|
06/20/35
|
|
|
110,925
|
|
|
|
|
47,048
|
|
GNMA, Series 2007-18, Class B
|
|
|
5.500
|
%
|
05/20/35
|
|
|
51,645
|
|
|
|
|
669,000
|
|
GNMA, Series 2007-6, Class LE
|
|
|
5.500
|
%
|
02/20/37
|
|
|
746,549
|
|
|
|
|
195,174
|
|
GNMA, Series 2007-68, Class NA
|
|
|
5.000
|
%
|
11/20/37
|
|
|
216,716
|
|
|
|
|
112,376
|
|
GNMA, Series 2007-70, Class PE
|
|
|
5.500
|
%
|
11/20/37
|
|
|
123,334
|
|
|
|
|
240,000
|
|
GNMA, Series 2008-26, Class JP
|
|
|
5.250
|
%
|
03/20/38
|
|
|
264,960
|
|
|
|
|
300,000
|
|
GNMA, Series 2008-35, Class EH
|
|
|
5.500
|
%
|
03/20/38
|
|
|
335,282
|
|
|
|
|
314,000
|
|
GNMA, Series 2008-65, Class CM
|
|
|
5.000
|
%
|
08/20/38
|
|
|
344,158
|
|
|
|
|
757,000
|
|
GNMA, Series 2008-65, Class PG
|
|
|
6.000
|
%
|
08/20/38
|
|
|
851,845
|
|
|
|
|
157,000
|
|
GNMA, Series 2009-47, Class LT
|
|
|
5.000
|
%
|
06/20/39
|
|
|
166,516
|
|
|
|
|
592,661
|
|
GNMA, Series 2009-57, Class VB
|
|
|
5.000
|
%
|
06/16/39
|
|
|
630,038
|
|
|
|
|
706,000
|
|
GNMA, Series 2009-93, Class AY
|
|
|
5.000
|
%
|
10/20/39
|
|
|
762,783
|
|
|
|
|
2,000,000
|
|
GNMA, Series 2010-116, Class PB
|
|
|
5.000
|
%
|
06/16/40
|
|
|
2,191,229
|
|
|
|
|
350,000
|
|
GNMA, Series 2010-89, Class BG
|
|
|
4.000
|
%
|
07/20/40
|
|
|
347,480
|
|
|
|
|
201,739
|
|
Vendee Mortgage Trust, Series 1998-1, Class 2E
|
|
|
7.000
|
%
|
03/15/28
|
|
|
234,389
|
|
Total Agency Mortgage-Backed Securities
(identified cost, $56,367,391)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
56,937,132
|
|
TOTAL FIXED INCOME INVESTMENTS
(identified cost, $56,367,391) — 95.9%
|
|
|
|
|
|
|
|
|
|
|
|
$
|
56,937,132
|
|
SHORT-TERM INVESTMENTS - 3.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,345,974
|
|
Fidelity Government Money Market Fund, 0.01% (1)
|
|
|
|
|
|
|
$
|
2,345,974
|
|
TOTAL SHORT-TERM INVESTMENTS
(identified cost, $2,345,974) — 3.9%
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,345,974
|
|
TOTAL INVESTMENTS
(identified cost, $58,713,365) — 99.8%
|
|
|
|
|
|
|
|
|
|
|
|
$
|
59,283,106
|
|
OTHER ASSETS, IN EXCESS OF LIABILITIES — 0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
93,453
|
|
NET ASSETS — 100.0%
|
|
|
|
|
|
|
|
|
|
|
|
$
|
59,376,559
|
|
FHLMC — Federal Home Loan Mortgage Corporation
FNMA — Federal National Mortgage Association
GNMA — Government National Mortgage Association
(1)
|
Variable rate security. Rate presented is as of December 31, 2013.
|
See Notes to Financial Statements.
55
Wright Current Income Fund (WCIF)
STATEMENT OF ASSETS AND LIABILITIES
|
As of December 31, 2013
|
|
|
|
|
|
ASSETS:
|
|
|
TRUE
|
|
Investments, at value
|
|
|
|
|
(identified cost $58,713,365) (Note 1A)
|
|
$
|
59,283,106
|
######
|
Receivable for fund shares sold
|
|
|
1,132
|
|
Dividends and interest receivable
|
|
|
238,793
|
|
Prepaid expenses and other assets
|
|
|
21,684
|
|
Total assets
|
|
$
|
59,544,715
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Payable for fund shares reacquired
|
|
$
|
35,188
|
|
Distributions payable
|
|
|
108,111
|
|
Accrued expenses and other liabilities
|
|
|
24,857
|
|
Total liabilities
|
|
$
|
168,156
|
|
NET ASSETS
|
|
$
|
59,376,559
|
|
|
|
|
|
|
NET ASSETS CONSIST OF:
|
|
|
|
|
Paid-in capital
|
|
$
|
62,165,824
|
|
Accumulated net realized loss on investments
|
|
|
(3,359,294
|
)
|
Undistributed net investment income
|
|
|
288
|
|
Unrealized appreciation on investments
|
|
|
569,741
|
|
Net assets applicable to outstanding shares
|
|
$
|
59,376,559
|
|
|
|
|
|
|
SHARES OF BENEFICIAL INTEREST OUTSTANDING AT $0.000 PAR VALUE (UNLIMITED SHARES AUTHORIZED)
|
|
|
6,288,595
|
|
|
|
|
|
|
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST
|
|
$
|
9.44
|
|
|
|
|
|
|
STATEMENT OF OPERATIONS
|
For the Year Ended December 31, 2013
|
|
|
|
|
|
|
|
INVESTMENT INCOME (Note 1C)
|
|
|
TRUE
|
|
|
|
Interest income
|
|
$
|
1,904,010
|
|
|
6E
|
+07
|
Dividend income
|
|
|
183
|
|
|
|
|
Total investment income
|
|
$
|
1,904,193
|
|
|
|
|
|
|
|
|
|
Expenses –
|
|
|
|
|
|
|
|
Investment adviser fee (Note 3)
|
|
$
|
320,217
|
|
|
|
|
Administrator fee (Note 3)
|
|
|
64,044
|
|
|
|
|
Trustee expense (Note 3)
|
|
|
14,040
|
|
|
|
|
Custodian fee
|
|
|
7,050
|
|
|
|
|
Accountant fee
|
|
|
41,601
|
|
|
|
|
Pricing
|
|
|
51,458
|
|
|
|
|
Distribution expenses (Note 4)
|
|
|
177,897
|
|
|
|
|
Transfer agent fee
|
|
|
31,444
|
|
|
|
|
Printing
|
|
|
268
|
|
|
|
|
Shareholder communications
|
|
|
6,697
|
|
|
|
|
Audit services
|
|
|
20,000
|
|
|
|
|
Legal services
|
|
|
18,847
|
|
|
|
|
Compliance services
|
|
|
7,120
|
|
|
|
|
Registration costs
|
|
|
20,862
|
|
|
|
|
Interest expense (Note 8)
|
|
|
1,698
|
|
|
|
|
Miscellaneous
|
|
|
40,915
|
|
|
|
|
Total expenses
|
|
$
|
824,158
|
|
|
|
|
|
|
|
|
|
Deduct –
|
|
|
|
|
|
|
|
Waiver and/or reimbursement by the principal underwriter and/or investment adviser (Note 4)
|
|
$
|
(181,968
|
)
|
|
|
|
Net expenses
|
|
$
|
642,190
|
|
|
|
|
Net investment income
|
|
$
|
1,262,003
|
|
|
|
|
|
|
|
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
|
|
|
|
|
Net realized loss on investment transactions
|
|
$
|
(275,429
|
)
|
|
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
|
(2,419,901
|
)
|
|
|
|
Net realized and unrealized loss on investments
|
|
$
|
(2,695,330
|
)
|
|
|
|
Net decrease in net assets from operations
|
|
$
|
(1,433,327
|
)
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
56
Wright Current Income Fund (WCIF)
|
|
|
Years Ended
|
|
STATEMENTS OF CHANGES IN NET ASSETS
|
|
December 31, 2013
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN NET ASSETS:
|
|
|
|
|
|
|
|
|
|
From operations –
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
1,262,003
|
|
|
$
|
1,536,225
|
|
|
0
|
Net realized gain (loss) on investment transactions
|
|
|
(275,429
|
)
|
|
|
71,311
|
|
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
|
(2,419,901
|
)
|
|
|
347,133
|
|
|
|
Net increase (decrease) in net assets from operations
|
|
$
|
(1,433,327
|
)
|
|
$
|
1,954,669
|
|
|
Distributions to shareholders (Note 2)
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(2,763,577
|
)
|
|
$
|
(2,698,291
|
)
|
|
|
Total distributions
|
|
$
|
(2,763,577
|
)
|
|
$
|
(2,698,291
|
)
|
|
Net increase (decrease) in net assets resulting from fund share transactions (Note 6)
|
$
|
(15,880,571
|
)
|
|
$
|
18,872,240
|
|
|
Net increase (decrease) in net assets
|
|
$
|
(20,077,475
|
)
|
|
$
|
18,128,618
|
|
|
##
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS:
|
|
|
|
|
|
|
|
|
|
|
At beginning of year
|
|
|
79,454,034
|
|
|
|
61,325,416
|
|
|
|
At end of year
|
|
$
|
59,376,559
|
|
|
$
|
79,454,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF YEAR
|
|
$
|
288
|
|
|
$
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
57
Wright Current Income Fund (WCIF)
These financial highlights reflect selected data for a share outstanding throughout each year.
|
|
|
|
|
|
|
Years Ended December 31,
|
FINANCIAL HIGHLIGHTS
|
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
$
|
10.010
|
|
$
|
10.100
|
|
$
|
9.910
|
|
$
|
9.830
|
|
$
|
9.700
|
|
Income (loss) from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
(1)
|
|
|
0.173
|
|
|
0.225
|
|
|
0.303
|
|
|
0.377
|
|
|
0.472
|
|
Net realized and unrealized gain (loss)
|
|
|
(0.365
|
)
|
|
0.081
|
|
|
0.302
|
|
|
0.175
|
|
|
0.118
|
|
|
Total income (loss) from investment operations
|
|
(0.192
|
)
|
|
0.306
|
|
|
0.605
|
|
|
0.552
|
|
|
0.590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.378
|
)
|
|
(0.396
|
)
|
|
(0.415
|
)
|
|
(0.472
|
)
|
|
(0.460
|
)
|
Net asset value, end of year
|
|
$
|
9.440
|
|
$
|
10.010
|
|
$
|
10.100
|
|
$
|
9.910
|
|
$
|
9.830
|
|
Total Return
(2)
|
|
|
(1.95
|
)%
|
|
3.06
|
%
|
|
6.22
|
%
|
|
5.70
|
%
|
|
6.20
|
%
|
Ratios/Supplemental Data
(3)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000 omitted)
|
|
$59,377
|
|
$79,454
|
|
$61,325
|
|
$40,584
|
|
$33,029
|
|
Ratios (As a percentage of average daily net assets):
|
Net expenses
|
|
|
0.90
|
%
|
0.90
|
%
|
0.90
|
%
|
0.90
|
%
|
0.92
|
%
|
Net expenses after custodian fee reduction
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
0.92
|
%
|
Net investment income
|
|
|
1.77
|
%
|
2.23
|
%
|
3.03
|
%
|
3.79
|
%
|
4.81
|
%
|
Portfolio turnover rate
|
|
|
39
|
%
|
27
|
%
|
50
|
%
|
54
|
%
|
57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
For the years ended December 31, 2013, 2012, 2011, 2010 and 2009
|
|
|
|
|
|
|
|
(1)
|
Computed using average shares outstanding.
|
(2)
|
Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the reinvestment date.
|
(3)
|
For each of the years presented, the operating expenses of the Fund were reduced by a waiver of fees and/or allocation of expenses to the principal underwriter and/or investment adviser. Had such action not been undertaken, expenses and net investment income ratios would have been as follows:
|
|
|
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
|
Ratios (As a percentage of average daily net assets):
|
Expenses
|
|
|
1.16
|
%
|
|
1.16
|
%
|
|
1.19
|
%
|
|
1.33
|
%
|
|
1.32
|
%
|
Expenses after custodian fee reduction
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
1.32
|
%
|
Net investment income
|
|
|
1.51
|
%
|
|
1.97
|
%
|
|
2.74
|
%
|
|
3.36
|
%
|
|
4.41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
58
Wright Managed Income Trust
Notes to Financial Statements
1.
Significant Accounting Policies
Wright Total Return Bond Fund (“WTRB”) and Wright Current Income Fund (“WCIF”) (each a “Fund” and collectively, the “Funds”) (the Funds constituting Wright Managed Income Trust (the “Trust”)), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. 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.
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
A. Investment Valuations – Debt obligations, including listed securities and securities for which quotations are readily available, will normally be valued on the basis of reported trades or market quotations provided by third party pricing services, when these prices are representative of the securities’ market values. For debt securities where market quotations are not readily available, the pricing services will use various techniques that consider factors including, but not limited to, prices or yields of securities with similar characteristics, benchmark yields, broker/dealer quotes, issuer spreads, as well as industry and economic events. Short-term debt securities with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. If short-term debt securities are acquired with a remaining maturity of more than sixty days, they will be valued by a pricing service as described above. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Funds in a manner that most fairly reflects the security’s value, or the amount that the Funds might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies, quotations or relevant information obtained from broker-dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B. Investment Transactions – Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.
C. Income – Dividend income is recorded on the ex-dividend date. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Funds are informed of the ex-dividend date. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium and accretion of discount.
Paydown gains and losses are included in interest income.
D. Federal Taxes – Each Fund’s policy is to comply with the provisions of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute to shareholders each year substantially all of its net investment income and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. At December 31, 2013, WTRB and WCIF, for federal income tax purposes, had capital loss carryforwards subject to expiration of $1,438,598 and $2,990,870, respectively, which will reduce each Fund’s taxable income arising from future net realized gain on investment transactions, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders, which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. Pursuant to the Code, such capital loss carryforwards will expire as follows:
59
Wright Managed Income Trust
Notes to Financial Statements
December 31,
|
WTRB
|
WCIF
|
2014
|
$940,468
|
$ -
|
2015
|
199,047
|
160,341
|
2017
|
299,083
|
-
|
As a result of the Regulated Investment Company Modernization Act of 2010, net capital losses realized on or after January 1, 2011 (effective date) may be carried forward indefinitely to offset future realized capital gains; however, post-effective losses must be used before pre-effective capital loss carryforwards with expiration dates. Therefore, it is possible that all or a portion of a fund’s pre-effective capital loss carryforwards could expire unused. In addition to the amounts noted in the table above, WCIF has $1,610,948 available short term capital loss carryforwards and $1,219,581 available long term capital loss carryforwards that have no expiration date.
As of December 31, 2013, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Funds’ federal tax returns filed in the 3-year period ended December 31, 2013, remains subject to examination by the Internal Revenue Service.
E. Expenses – The majority of expenses of the Trust are directly identifiable to an individual Fund. Expenses which are not readily identifiable to a specific Fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the Funds.
F. Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
G. Indemnifications – Under each Fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Funds, and shareholders are indemnified against personal liability for the obligations of the Funds. Additionally, in the normal course of business, the Funds enter into agreements with service providers that may contain indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
2.
Distributions to Shareholders
The net investment income of each Fund is determined daily, and substantially all of the net investment income so determined is declared daily as a dividend to shareholders of record at the time of declaration. Distributions are generally paid monthly. Distributions of net realized capital gains (reduced by available capital loss carryforwards from prior years, if any) are made at least annually. Shareholders may reinvest income and capital gain distributions in additional shares of the same Fund at the net asset value as of the reinvestment date or, at the election of the shareholder, receive distributions in cash. The Funds distinguish between distributions on a tax basis and a financial reporting basis. GAAP requires that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital.
60
Wright Managed Income Trust
Notes to Financial Statements
The tax character of distributions paid for the year ended December 31, 2013, and December 31, 2012, was as follows:
Year Ended 12/31/13
|
|
|
WTRB
|
|
|
WCIF
|
|
Distributions declared from:
|
|
|
|
|
|
|
|
Ordinary income
|
|
$
|
665,626
|
|
$
|
2,763,577
|
|
|
|
|
|
|
|
|
|
Year Ended 12/31/12
|
|
|
|
|
|
|
|
Distributions declared from:
|
|
|
|
|
|
|
|
Ordinary income
|
|
$
|
1,124,326
|
|
$
|
2,698,291
|
|
During the year ended December 31, 2013, the following amounts were reclassified due to premium amortization, paydown gain (loss) and expiring capital loss carryovers.
Increase (decrease):
|
|
|
WTRB
|
|
|
|
WCIF
|
|
|
Paid-in capital
|
|
$
|
(47
|
)
|
|
$
|
(196,117
|
)
|
|
Accumulated net realized gain (loss)
|
|
|
(147,320
|
)
|
|
|
(1,305,674
|
)
|
|
Accumulated undistributed net investment income (loss)
|
|
|
147,367
|
|
|
|
1,501,791
|
|
|
These reclassifications had no effect on the net assets or net asset value per share of the Funds.
As of December 31, 2013, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
|
|
|
WTRB
|
|
|
|
WCIF
|
|
Undistributed ordinary income
|
|
$
|
-
|
|
|
$
|
288
|
|
Capital loss carryforward and post October losses
|
|
|
(1,456,233
|
)
|
|
|
(3,124,253
|
)
|
Unrealized appreciation
|
|
|
486,191
|
|
|
|
334,700
|
|
Total
|
|
$
|
(970,042
|
)
|
|
$
|
(2,789,265
|
)
|
The difference between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to wash sales, premium amortization and paydown gain (loss).
For tax purposes, the current year post-October loss was $17,635 and $133,383 (realized during the period November 1, 2013 through December 31, 2013) for WTRB and WCIF, respectively. These losses will be recognized for tax purposes on the first business day of each Fund’s next fiscal year, January 1, 2014.
3.
Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Wright Investor Services, Inc. (“Wright”) as compensation for investment advisory services rendered to the Funds. The fees are computed at annual rates of the Funds' average daily net assets as noted below, and are payable monthly.
Annual Advisory Fee Rates
|
Fund
|
Under $100 Million
|
$100 Million to $250 Million
|
$250 Million to $500 Million
|
$500 Million to $1 Billion
|
Over $1 Billion
|
WTRB
|
0.45%
|
0.44%
|
0.42%
|
0.40%
|
0.35%
|
WCIF
|
0.45%
|
0.44%
|
0.42%
|
0.40%
|
0.35%
|
For the year ended December 31, 2013, the fee and the effective annual rate, as a percentage of average daily net assets for each of the Funds were as follows:
61
Wright Managed Income Trust
Notes to Financial Statements
Fund
|
Investment Adviser Fee
|
Effective Annual Rate
|
WTRB
|
$ 79,635
|
0.45%
|
WCIF
|
$320,217
|
0.45%
|
The administrator fee is earned by Wright for administering the business affairs of each Fund. The fee is computed at an annual rate of 0.07% of the average daily net assets up to $100 million for WTRB and an annual rate of 0.09% of the average daily net assets up to $100 million for WCIF, and 0.05% of average daily net assets over $100 million. Atlantic Fund Administration, LLC (d/b/a Atlantic Fund Services) (“Atlantic”) serves as sub-administrator of the Funds to perform certain services of the administrator as may be agreed upon between the administrator and sub-administrator. The sub-administration fee is paid by Wright.
For the year ended December 31, 2013, the administrator fee for WTRB and WCIF amounted to $12,388 and $64,044, respectively.
Certain Trustees and officers of the Trust are Trustees or officers of the above organizations and/or of the Funds’ principal underwriter. Except as to Trustees of the Trust who are not employees of Atlantic or Wright, Trustees and officers receive remuneration for their services to the Trust out of the fees paid to Atlantic and Wright. The Trustees are compensated by the Trust in conjunction with the Wright Managed Equity Trust, rather than on a per Trust or per Fund basis. Quarterly retainer fees are paid in the amount of $4,000 to the Lead Trustee, $3,500 to the Secretary of Independent Trustees, and $3,000 each to the remaining Trustees. In addition, each Trustee will be paid a fee of $1,500 for each regular Board meeting attended. Each Trustee is also reimbursed for all reasonable out-of-pocket expenses incurred in connection with his duties as a Trustee, including travel and related expenses incurred in attending Board meetings. The amount of Trustees’ fees attributable to each Fund is disclosed in each Fund’s Statement of Operations.
4.
Distribution and Service Plans
The Trust has in effect a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 of the 1940 Act. The Plan provides that each Fund will pay Wright Investors’ Service Distributors, Inc. (“WISDI”), the principal underwriter, a wholly-owned subsidiary of The Winthrop Corporation and an affiliate of Wright, a distribution fee of 0.25% of the average daily net assets of each Fund for distribution services and facilities provided to the Funds by WISDI. Distribution fees paid or accrued to WISDI for the year ended December 31, 2013, for WTRB and WCIF were $44,241 and $177,897, respectively. In addition, the Trustees have adopted a service plan (the “Service Plan”) which allows the Funds to reimburse the principal underwriter for payments to intermediaries for providing account administration and personal and account maintenance services to their customers who are beneficial owners of each Fund’s shares. The combined amount of service fees payable under the Service Plan and Rule 12b-1 distribution fees may not exceed 0.25% annually of each Fund’s average daily net assets. For the year ended December 31, 2013, the Funds did not accrue or pay any service fees.
Pursuant to an Expense Limitation Agreement, Wright and WISDI have agreed to waive all or a portion of their fees and reimburse expenses to the extent that total annual operating expenses exceed 0.95% and 1.00% of the average daily net assets of WTRB and WCIF, respectively, through April 30, 2014 (excluding interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund’s business). Thereafter, the waiver and reimbursement may be changed or terminated at any time. In addition, Wright and WISDI have voluntarily agreed to further limit the total annual expenses of WCIF to 0.90% of its average daily net assets. Such voluntary limitation may be terminated at any time. Pursuant to these agreements and voluntary limitation, Wright waived and/or reimbursed investment adviser fees of $104,812 and $4,071 for WTRB and WCIF, respectively. WISDI waived distribution fees of $44,241 and $177,897 for WTRB and WCIF, respectively.
62
Wright Managed Income Trust
Notes to Financial Statements
5.
Investment Transactions
Purchases and sales (including maturities and paydowns) of investments, other than short-term obligations, were as follows:
Year Ended December 31, 2013
|
|
WTRB
|
WCIF
|
Purchases -
|
|
|
Non-U.S. Government & Agency Obligations
|
$ 236,758
|
$ -
|
U.S. Government & Agency Obligations
|
7,811,045
|
27,375,861
|
Sales -
|
|
|
Non-U.S. Government & Agency Obligations
|
$ 6,003,563
|
$ 350,484
|
U.S. Government & Agency Obligations
|
9,283,450
|
43,300,531
|
6.
Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in Fund shares were as follows:
|
|
|
Year Ended December 31, 2013
|
|
Year Ended December 31, 2012
|
|
|
|
Shares
|
|
|
|
Amount
|
|
|
Shares
|
|
|
|
Amount
|
|
|
WTRB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold
|
166,765
|
|
|
$
|
2,158,136
|
|
|
780,654
|
|
|
$
|
10,400,804
|
|
|
Issued to shareholders in payment of distributions declared
|
38,483
|
|
|
|
494,615
|
|
|
43,663
|
|
|
|
582,172
|
|
|
Redemptions
|
(812,158
|
)
|
|
|
(10,591,891
|
)
|
|
(1,301,080
|
)
|
|
|
(17,349,146
|
)
|
|
Net decrease
|
(606,910
|
)
|
|
$
|
(7,939,140
|
)
|
|
(476,763
|
)
|
|
$
|
(6,366,170
|
)
|
|
|
|
Year Ended December 31, 2013
|
|
Year Ended December 31, 2012
|
|
|
|
Shares
|
|
|
|
Amount
|
|
|
Shares
|
|
|
|
Amount
|
|
|
WCIF
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold
|
2,259,819
|
|
|
$
|
22,209,423
|
|
|
3,809,266
|
|
|
$
|
38,430,259
|
|
|
Issued to shareholders in payment of distributions declared
|
127,114
|
|
|
|
1,235,624
|
|
|
134,887
|
|
|
|
1,362,875
|
|
|
Redemptions
|
(4,038,834
|
)
|
|
|
(39,325,618
|
)
|
|
(2,073,456
|
)
|
|
|
(20,920,894
|
)
|
|
Net increase (decrease)
|
(1,651,901
|
)
|
|
$
|
(15,880,571
|
)
|
|
1,870,697
|
|
|
$
|
18,872,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.
Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of the investment securities owned at December 31, 2013, as computed on a federal income tax basis, were as follows:
Year Ended December 31, 2013
|
|
|
|
WTRB
|
|
|
WCIF
|
|
Aggregate cost
|
|
$
|
15,063,432
|
|
|
$
|
58,948,406
|
|
Gross unrealized appreciation
|
|
$
|
764,020
|
|
|
$
|
1,180,810
|
|
Gross unrealized depreciation
|
|
|
(277,829
|
)
|
|
|
(846,110
|
)
|
Net unrealized appreciation
|
|
$
|
486,191
|
|
|
$
|
334,700
|
|
63
Wright Managed Income Trust
Notes to Financial Statements
8.
Line of Credit
The Funds participate with other funds managed by Wright in a committed $10 million unsecured line of credit agreement with Union Bank of California, N.A. (“Union Bank”). The Funds may temporarily borrow from the line of credit to satisfy redemption requests or settle investment transactions. Interest is charged to each Fund based on its borrowings at an amount above the LIBOR rate. Because the line of credit is not available exclusively to each Fund, they may be unable to borrow some or all of the Funds’ requested amounts at any particular time. At December 31, 2013, the Funds had no outstanding balances pursuant to this line of credit.
The average borrowings and average interest rate (based on days with outstanding balances) for the year ended December 31, 2013, were as follows:
|
WTRB
|
WCIF
|
Average borrowings
|
$176,172
|
$1,314,580
|
Average interest rate
|
1.19%
|
1.19%
|
9.
Fair Value Measurements
Under GAAP for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At December 31, 2013, the inputs used in valuing each Fund’s investments, which are carried at value, were as follows:
WTRB
Asset Description
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
|
Significant Other Observable Inputs (Level 2)
|
|
|
Significant Unobservable Inputs (Level 3)
|
|
|
Total
|
|
Asset-Backed Securities
|
|
$
|
-
|
|
|
$
|
95,825
|
|
|
$
|
-
|
|
|
$
|
95,825
|
|
Commerical Mortgage-Backed Securities
|
|
|
-
|
|
|
|
983,162
|
|
|
|
-
|
|
|
|
983,162
|
|
Corporate Bonds
|
|
|
-
|
|
|
|
6,839,949
|
|
|
|
-
|
|
|
|
6,839,949
|
|
U.S. Government Interests
|
|
|
-
|
|
|
|
7,233,066
|
|
|
|
-
|
|
|
|
7,233,066
|
|
Short-Term Investments
|
|
|
-
|
|
|
|
397,621
|
|
|
|
-
|
|
|
|
397,621
|
|
Total Investments
|
|
$
|
-
|
|
|
$
|
15,549,623
|
|
|
$
|
-
|
|
|
$
|
15,549,623
|
|
64
Wright Managed Income Trust
Notes to Financial Statements
WCIF
Asset Description
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
|
Significant Other Observable Inputs (Level 2)
|
|
|
Significant Unobservable Inputs (Level 3)
|
|
|
Total
|
|
Agency Mortgage-Backed Securities
|
|
$
|
-
|
|
|
$
|
56,937,132
|
|
|
$
|
-
|
|
|
$
|
56,937,132
|
|
Short-Term Investments
|
|
|
-
|
|
|
|
2,345,974
|
|
|
|
-
|
|
|
|
2,345,974
|
|
Total Investments
|
|
$
|
-
|
|
|
$
|
59,283,106
|
|
|
$
|
-
|
|
|
$
|
59,283,106
|
|
The level classification by major category of investments is the same as the category presentation in each Fund’s Portfolio of Investments.
There were no transfers between Level 1, Level 2 and Level 3 for the year ended December 31, 2013.
10.
Review for Subsequent Events
In connection with the preparation of the financial statements of the Funds as of and for the year ended December 31, 2013, events and transactions subsequent to December 31, 2013, have been evaluated by the Funds’ management for possible adjustment and/or disclosure. Management has not identified any subsequent events requiring financial statement disclosure as of the date these financial statements were issued.
65
Wright Managed Income Trust
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of The Wright Managed Income Trust
and the Shareholders of Wright Total Return Bond Fund and Wright Current Income Fund
We have audited the accompanying statements of assets and liabilities of Wright Total Return Bond Fund and Wright Current Income Fund, each a series of shares of The Wright Managed Income Trust (the "Funds"), including the portfolios of investments, as of December 31, 2013, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the four-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the year ended December 31, 2009 were audited by other auditors whose report dated February 23, 2010, expressed an unqualified opinion on such financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2013 by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Wright Total Return Bond Fund and Wright Current Income Fund as of December 31, 2013, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
BBD, LLP
Philadelphia, Pennsylvania
February 24, 2014
66
Wright Managed Income Trust
Federal Tax Information (Unaudited)
The Form 1099-DIV you received in January 2014 showed the tax status of all distributions paid to your account in calendar year 2013. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Funds.
Qualified Interest Income
– Wright Total Return Bond Fund and Wright Current Income Fund designate 97.28% and 99.99%, respectively, as qualified interest income exempt from U.S. tax for foreign shareholders (QII).
67
Management and Organization (Unaudited)
_____________________________________________________________________
Fund Management.
The Trustees of the Trust are responsible for the overall management and supervision of the affairs of the Trust. The Trustees and principal officers of the Trusts are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. The business address of each Trustee and principal officer is 440 Wheelers Farms Road, Milford, Connecticut 06461.
Definitions
:
“WISDI” means Wright Investors’ Service Distributors, Inc., the principal underwriter of the Funds.
“Winthrop” means The Winthrop Corporation, a holding company which owns all of the shares of Wright and WISDI.
Name, Address and Age
|
Position(s) with the Trust
|
Term* of Office and Length of Service
|
Principal Occupation(s) During Past Five Years
|
Number of Funds in Fund Complex Overseen by Trustee
|
Other Trustee/
Director/
Partnership/
Employment Positions Held
|
Interested Trustee
|
Peter M. Donovan**
Born: 1943
|
President and Trustee
|
President and Trustee since Inception
|
Chairman, Chief Executive Officer, President and Director of Wright; Chairman of the Investment committee; a director of WISDI; President of 5 funds managed by Wright
|
5
|
Director, Wright Investors’ Service Holdings, Inc.
|
Independent Trustees
|
James J. Clarke
Born: 1941
|
Trustee
|
Trustee since December,
2002
|
President, Clarke Consulting (bank consultant – financial management and strategic planning); Director, Reliance Bank, Altoona, PA since August 1995; Director, Quaint Oak Bank, Southampton, PA since March 2007; Director, Phoenixville Federal Bank & Trust, Phoenixvill, PA since 2011.
|
5
|
None
|
Dorcas R. Hardy
Born: 1946
|
Trustee
|
Trustee since December, 1998
|
President, Dorcas R. Hardy & Associates ( a public policy and government relations firm) Spotsylvania, VA; Director, First Coast Service Options 1998 to 2009.
|
5
|
None
|
Richard E. Taber
Born: 1948
|
Trustee
|
Trustee since March, 1997
|
Retired; Chairman and Chief Executive Officer of First Country Bank, Stamford, CT through 2011; Director, First Country Bank since 2011.
|
5
|
None
|
Principal Officers who are not Trustees
|
A.M. Moody, III
Born: 1937
|
Vice President
|
Vice President of the Trusts since December, 1990
|
President, AM Moody Consulting LLC (compliance and administrative services to the mutual fund industry) since July 2003; President and Director of WISDI since 2005; Vice President of 5 funds managed by Wright; Trustee of the Trusts 1990-2012; Retired Senior Vice President of Wright and the Winthrop Corporation.
|
|
|
Michael J. McKeen
Born: 1971
|
Treasurer
|
Treasurer since March, 2011
|
Senior Vice President, Atlantic Fund Services, LLC 2008 to present; Officer of 5 funds managed by Wright.
|
|
|
Megan Hadley Koehler
Born: 1978
|
Secretary
|
Secretary since July, 2013
|
Associate Counsel at Atlantic Fund Services, LLC 2008 to present; Officer of 5 funds managed by Wright.
|
|
|
*
|
Trustees serve an indefinite term. Officers are elected annually.
|
**
|
Mr. Donovan is an interested person of the Trusts because of his positions as President of the Trusts, Chairman, Chief Executive Officer and Director of Wright and Winthrop and Director of WISDI.
|
Important Notices Regarding Delivery of Shareholder
Documents, Portfolio Holdings and Proxy Voting (Unaudited)
The Wright Managed Blue Chip Investment Funds
Wright Investors’ Service, Inc.
Wright Investors’ Service Distributors, Inc.
Important Notice Regarding Delivery of Shareholders Documents
The Securities and Exchange Commission (the “SEC”) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders.
Wright, or your financial adviser, may household the mailing of your documents indefinitely unless you instruct Wright, or your financial adviser, otherwise.
If you would prefer that your Wright documents not be householded, please contact Wright at (800) 555-0644, or your financial adviser.
Your instructions that householding not apply to delivery of your Wright documents will be effective within 30 days of receipt by Wright or your financial adviser.
Portfolio Holdings
In accordance with rules established by the SEC, the Funds send semi-annual and annual reports to shareholders that contain a complete list of portfolio holdings as of the end of the second and fourth quarters, respectively, within 60 days of quarter-end and after filing with the SEC. The Funds also disclose complete portfolio holdings as of the end of the first and third fiscal quarters on Form N-Q, which is filed with the SEC within 60 days of quarter-end. The Funds’ complete portfolio holdings as reported in annual and semi-annual reports and on Form N-Q are available for viewing on the SEC website at http://www.sec.gov and may be reviewed and copied at the SEC’s public reference room (information on the operation and terms of usage of the SEC public reference room is available at http://sec.gov/info/edgar/prrules.htm or by calling (800) SEC-0330). After filing, the Funds’ portfolio holdings as reported in annual and semi-annual reports are also available on Wright’s website at www.wrightinvestors.com and are available upon request at no additional cost by contacting Wright at (800) 555-0644.
Proxy Voting Policies and Procedures
From time to time funds are required to vote proxies related to the securities held by the funds. The Wright Managed Blue Chip Investment Funds vote proxies according to a set of policies and procedures approved by the Funds’ Board. You may obtain a description of these policies and procedures and information on how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 without charge, upon request, by calling (800) 555-0644. This description is also available on the SEC website at http://www.sec.gov.
69
This page intentionally left blank.
70
This page intentionally left blank.
71
This page intentionally left blank.
The Wright Managed Blue Chip Investment Funds
(continued from inside front cover)
Two Fixed-Income Funds
Wright Total Return Bond Fund (WTRB)
(the “Fund”) 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 Barclays U.S. Aggregate Bond Index.
Wright Current Income Fund (WCIF)
(the “Fund”) may be invested in a variety of securities and may use a number of strategies, including GNMAs, to produce a high level of income with reasonable stability of principal. The Fund reinvests all principal payments. Dividends are accrued daily and paid monthly. The Fund’s benchmark is the Barclays GNMA Backed Bond Index.