REPORT FROM THE INVESTMENT COMMITTEE Thursday, July 13, 2000

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REPORT FROM THE INVESTMENT COMMITTEEThursday,
July 13, 2000
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Report from the InvestmentCommitteeTable of
Contents
Tab 1 Economic/Market Update and Asset Allocation
Michael Flament Tab 2 Fixed Income Jim
Fields Tab 3 International Equities Amit
Khandwala Tab 4 Large-Cap Equities Patricia
Pierce Tab 5 U. S. Mid-Cap Equities George
Faherty Tab 6 Performance Tables
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Fixed Income Market ReviewSecond Quarter 2000

• Jim Fields
• July 13, 2000

2 - 1
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Fixed Income Market ReviewTreasury Yield Curve
ChangesJune 30, 2000

• U.S. Treasury yield curve inverted during the
  first quarter of 2000. Two year Treasuries still
  offer higher yields than thirty year Treasuries.
• An active Fed and a diminishing supply of
  Treasury Bonds presents challenges to bond
  investors.

1-Qtr 2000 2 Qtr 2000 2 Yr 25 bp
- 13 bp 10 Yr - 42 bp
1 bp 30 Yr - 64 bp 6
bp
2 - 2
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Fixed Income Market ReviewU.S. Investment Grade
Bond Market Performance By Sector June 30, 2000
2000 YTD Performance Aggregate First positive
back-to-back quarters since 1998 Treasuries Top
performing sector in 2000
2 - 3
Source Lehman Brothers
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Fixed Income Market ReviewU.S. Investment Grade
Bond Market Monthly Performance By Sector June
30, 2000
2Q-2000 Performance June Top performing month
in the 2Q-2000
2 - 4
Source Lehman Brothers
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Fixed Income Market Review Treasury Markets
June 30, 2000

• Inflation worries early in the second quarter led
  to a 50 bp Fed increase by in mid-May.
• Market sentiment improved later in the quarter
  as weaker economic reports were reported
  throughout May and June.

2 - 5
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Fixed Income Market ReviewU.S.
Treasuries-Performance By Maturity June 30, 2000
2000 Performance -Short Treasuries Outperform
During The Second Quarter -U.S. Treasuries Posted
Positive Returns Each Month Of This Year
Source Lehman Brothers
2 - 6
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Fixed Income Market Review Investment Grade
Corporate Bonds U.S. Agencies Relative
ValuationJune 30, 2000

• Treasury curve inversion, a volatile equity
  market and the concern over Fed tightenings have
  pushed corporate and agency spreads back out past
  the Asian crisis days of Summer 1998.
• Agencies also hurt by the questioning of the
  status of the GSEs.

2 - 7
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Fixed Income Market Review Corporate Bond
PerformanceAbsolute Returns - June 30, 2000
2000 Performance Higher Quality Issues
Outperforming
2 -8
Source Lehman Brothers
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Fixed Income Market Review Mortgage-Backed
Securities Relative ValuationJune 30, 2000

• Treasury curve inversion and discussions over the
  status of the GSEs, which are big players in the
  MBS market, has put pressure on Mortgage
  spreads.

2 - 9
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Fixed Income Market Review Mortgage Backed
Securities PerformanceAbsolute Returns -June 30,
2000
2000 Performance Flight To Quality Turnaround??
GNMAs Have An Explicit Government
Guarantee.
2 - 10
Source Lehman Brothers
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Fixed Income Market Review Bond Performance By
Sector (Curve-Adjusted Excess Returns Over
Treasuries)June 30, 2000

• Each sector posted negative YTD excess-returns
  for the first six months of 2000.
• Sentiment improved in June as Agencies gained 43
  bp (best month ever), Corporates 69 bp (first
  positive month in 2000) and MBS 29 bp, on an
  excess-return basis, relative to Treasuries.

Source Lehman Brothers
2 - 11
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Fixed Income Market ReviewSecond Quarter 2000
June 30, 2000

• Aggregate First Back-To-Back Positive Quarters
  Since 1998
• Agencies MBS Out-perform Treasuries On An
  Absolute and Excess-Return Basis Corporates
  Under-perform for the Qtr.
• Major Themes
• U.S. Treasury curve remains inverted.
• Fed 50bp increase in May
• Market sentiment goes from inflation worries and
  fears of more Fed tightenings in the first half
  of the quarter to weaker economic reports and a
  Fed on-hold outlook towards the end of the
  quarter.
• Good spread product performance in June

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Fixed Income Market Review WIS Total Return
Bond FundJune 30, 2000
Outlook Second-Half 2000 Over Weighting Spread
Sectors Duration Modestly Longer Vs. Benchmark
2 - 13
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Fixed Income Market Review WIS Current Income
Fund June 30, 2000
Outlook Second-Half 2000 Discount / Premium
Coupons
2 - 14
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Fixed Income Market Review U.S. Government Near
Term FundJune 30, 2000
Outlook Second-Half 2000 Agency/Treasury Swaps
2 - 15
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Fixed Income Market OutlookSecond-Half
2000June 30, 2000

• Bond Market Second-Half 2000
• Surplus/Treasury Buy-Backs/Inverted Treasury
  Curve
• Economic Strength Inflation Worries Fed
  Moves ????
• Soft/Hard Landing in the U.S.???
• Equity/Bond Performance
• Spread (non-Treasury) Products Performance
• Maturity/Duration Slightly Longer Than Benchmarks

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International Equity Management

• Amit S. Khandwala
• July 13, 2000

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WIBC Investment Performance
Q1 2000
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WIBC Investment Performance
12 months thru Q2 2000
3 - 3
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Return Attribution AnalysisQ2 2000
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Contributors by Country for Q2 2000

• Negative Contributors
• Japan, stock selection. Blue Chip sell off.
• Singapore, industry selection Natsteel
  Electronics.
• Swiss, industry selection. Pharma Staple
  bounce.
• Positive Contributors
• Brazil, stock selection.
• Sweden, industry selection.
• Greece, country selection zero weight.

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Country changes during Q2

• Reduced Finland due to sale of Nokia.
• Increased Italy thru Financials.
• Investment in Taiwan Thailand.
• Increased UK, Switzerland France.

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Sector changes during Q2

• Reduced Technology by 5.
• Reduced Telecom by 4
• Reallocated proceeds to Industrials, Financials
  Energy.

3 - 7
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ADR Core Management PerformanceAs of June 30,
2000
3 - 8
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Summary

• Expect global economy to weaken somewhat over the
  next 12 months.
• Euro appreciation should help dollar returns.
• UK market looks attractive now.
• Japanese Tankan survey results were encouraging.
• Continue to like Technology, Energy Financials.
• International markets continue to look attractive
  for the rest of 2000.

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The Equity MarketReport for 2nd Quarter 2000

• Patricia Pierce, CFA
• Senior Vice President

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PerformanceSecond Quarter 2000Managed Equity
Core Portfolio
Total Return3 Mos. Ended 6/30
Core Equity -4.0 Core Equity
25 -4.6 WMBC -4.4 SP 500 -2.7
4 - 2
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Managed Equity CorePortfolio StrategiesJune
Quarter

• Become more defensive on consumer spending
• Reduce Consumer Cyclicals
• Upgrade Consumer Staples
• Take advantage of growth stocks at opportunistic
  prices

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Managed Equity CoreEquity Transaction
HighlightsMarch - June 2000

• SELL
• Vulnerable situations
• EMC Corp.
• Alltel
• Disappointing outlooks
• Gap Stores
• Bristol-Myers
• BUY
• Accelerating topline growth
• Avon Products
• Biogen
• Low priced Blue Chip growth
• ATT
• Lucent Technologies

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Pluses Minuses in a Volatile MarketJune
Quarter 2000
Outperformed in Winners LosersTechnology A
dobe Systems (17) Adaptec (-41)Communicatio
ns SBC Telecom ( 3) ATT (-43)
Underperformed in Winners LosersCapital
Goods Solectron (4) Honeywell
(-36)Healthcare Johnson Johnson (
45) Bristol-Myers (1)
BEST Blue Chip- Johnson Johnson _at_ plus
45 WORST Blue Chip - ATT _at_ minus 43
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U.S. Mid Cap Equity

• George Faherty, CFA
• Vice President

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Selected Blue Chip vs. SP 400 and Russell MidCap
Index
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Sector Weighting 6/30/2000
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WSBC Q2 Relative Performance

• Outperformance
• Healthcare (23)
• Energy (7)
• Cons. Staples (6)

• Underperformance
• Basic Materials (-19)
• Cons. Cyclicals (-11)
• Technology (-9)

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WSBC Q2 Sector Shifts

• Increased Weighting
• Healthcare (4)
• Utilities (2)
• Energy (2)
• Cons. Cyclicals (1)
• Cons. Staples (1)
• Capital Goods (1)

• Decreased Weighting
• Technology (-9)
• Basic Materials (-2)

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