WADE FUND, INC.
Suite 2224
5100 Poplar Avenue
Memphis, Tennessee 38137
August 14, 1996
TO THE STOCKHOLDERS:
Submitted, herewith, is the statement covering operations of Wade Fund, Inc.,
from January 1, 1996 through June 30, 1996.
For the first six months net ordinary income amounted to 1,680.90.
The net asset value per share as of June 30, 1996 was 34.79. This compares
with 33.60 as of December 21, 1995.
Sincerely yours,
WADE FUND, INC.
s/ Maury Wade, Jr.
Maury Wade, Jr.
President
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WADE FUND INC.
Audited Financial Statements
Wade Fund, Inc.
Memphis, Tennessee
June 30, 1996
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Wade Fund, Inc.
Index
June 30, 1996
___________________________________________________________________________
Independent Auditor's Report Page 3
Statement of Assets and Liabilities 4
Statement of Sources of Net Assets 4
Statement of Operations 5
Statement of Unrealized Appreciation on Investments 5
Statement of Changes in Net Assets 6
Schedule of Investments 7
Notes to Financial Statements 8-9
Financial Highlights 10
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RHEA & IVY, P.L.C.
To the Shareholders and Board of Directors
Wade Fund, Inc.
Memphis, Tennessee
Independent Auditor's Report
We have audited the statements of assets and liabilities and sources of
net assets of Wade Fund, Inc., including the schedule of investments as
of June 30, 1996, and the related statements of operations, realized gain
on investments, unrealized appreciation on investments and changes in
net assets for the six months then ended, and supplementary information
(note 4) for the four years and six months then ended. These financial
statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. 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 audit provides a reasonable basis for our opinion. Securities
owned as investments at June 30, 1996, were held by the Trust Department
of the First Tennessee Bank under a custodial agreement, and were verified
by direct confirmation.
In our opinion, the financial statements and schedule referred to above
present fairly, in all material respects, the financial position of Wade
Fund, Inc., as of June 30, 1996, and the results of its operations and
the changes in its net assets for the six months then ended, in conformity
with generally accepted accounting principles. Also, in our opinion,
the supplementary information (note 5) for the four years and six months
ended June 30, 1996, is fairly stated in all material respects in relation
to the financial statements taken as a whole.
/s Rhea & Ivy, P.L.C.
Memphis, Tennessee
July 10, 1996
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Wade Fund, Inc.
Statement of Assets and Liabilities
June 30, 1996
___________________________________________________________________________
Assets
______
Investments at closing market quotations:
Common stock (cost $142,585.51) $ 446,225.00
Cash on demand deposit 6,483.19
Cash on deposit - safekeeping account 149,665.75
Dividends receivable 987.25
Interest receivable 633.30
Prepaid bond premium 69.11
___________
Total assets 604,063.60
___________
Liabilities
___________
Accrued expenses 299.07
State franchise taxes payable 382.27
Federal and state income taxes payable -
_______
Total liabilities 681.34
_______
Net assets applicable to 17,346 shares of
outstanding capital stock $ 603,382.26
____________
____________
Net asset value per share of outstanding
capital stock $ 34.79
____________
____________
Offering and redemption price per share $ 34.79
____________
____________
Statement of Sources of Net Assets
__________________________________
June 30, 1996
_____________
Capital
Excess of amounts received from sale of
capital shares over amounts paid out
in redeeming shares:
Authorized 100,000 shares, no par value,
outstanding 17,346 shares $ 286,264.78
Accumulated net realized gain
on investment (computed on
identified cost basis) $ 1,431,425.61
Accumulated distributions
on net realized gain 1,425,440.41 5,985.20
____________
Unrealized appreciation on investments 303,639.49
__________
Total capital 595,889.47
Undistributed net income 7,492.79
__________
Net assets applicable to 17,346 shares of
outstanding capital stock $ 603,382.26
__________
__________
Send notes to financial statements.
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Wade Fund, Inc.
Statement of Operations
For the Six Months Ended June 30, 1996
_________________________________________________________________________
Income
Dividends $ 5,482.00
Interest 3,915.90
___________
9,397.90
___________
___________
Expenses
Advisory fee 2,276.03
Legal fee 1,010.00
Accounting fee 2,280.00
Custodial fee 825.00
Other expenses 953.97
Taxes, including federal, state and local 372.00
___________
7,717.00
___________
Net income $ 1,680.90
___________
Ratio of total expenses to total income 82.11%
Statement of Unrealized Appreciation on Investments
___________________________________________________
For The Six Months Ended June 30, 1996
______________________________________
Balance at January 1, 1996 $ 284,676.99
Balance at June 30, 1996 303,639.49
___________
Increase in unrealized appreciation $ 18,962.50
___________
___________
See notes to financial statements.
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Wade Fund, Inc.
Statement of Changes in Net Assets
For the Six Months Ended June 30, 1996
__________________________________________________________________________
Net Assets
Net assets at January 1, 1996, including $ 584,346.86
$5,814.89 in undistributed net income
Income (Expenses)
Net income per statement of
income and expenses $ 1,680.90
Net equalization credits
(debits) included in
price of shares sold
and repurchased (3.00)
__________
Increase in balance of undistributed
net income 1,677.90
Increase in unrealized appreciation
of investments 18,962.50
Capital Stock Issued and Repurchased
(exclusive of equalization
debits and credits)
Amounts received from
subscriptions to 12
shares of capital stock 430.56
Less amounts paid for capital
stock repurchased (2,035.56)
__________
Decrease in capital stock (1,605.00)
Net assets at June 30, 1996, including
$7,492.79 in undistributed net income $ 603,382.26
____________
____________
See notes to financial statements.
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Wade Fund, Inc.
Schedule of Investments
June 30, 1996
_____________________________________________________________________________
Number of Market
Shares Cost Value
_________ ___________ _________
Common stocks - 73.95%
Aluminum - 6.66%
Aluminum Co. of America 700 $ 6,456.75 $ 40,162.50
________ _________
Bank and Finance - 13.10%
J. P. Morgan and Co. Inc. 500 1,833.19 42,312.50
First Tennessee National
Corporation 1,200 22,780.00 36,750.00
_________ _________
24,613.19 79,062.50
_________ _________
Electronics - 6.61%
Texas Instruments, Inc. 800 2,145.88 39,900.00
_________ _________
Gold - 5.54%
Placer Dome, Inc. 1,400 1,082.11 33,425.00
_________ _________
Insurance - 7.03%
Safeco Corporation 1,200 1,440.95 42,450.00
_________ _________
Metals - 5.16%
Phelps Dodge Corp. 500 23,634.00 31,125.00
_________ _________
Paper Products - 6.11%
International Paper, Inc. 1,000 24,828.25 36,875.00
_________ _________
Petroleum Services - 9.77%
Schlumberger, Ltd. 700 25,862.90 36,875.00
_________ _________
Pharmaceutical - 5.97%
Bristol Myers Squibb 400 23,885.00 36,000.00
_________ _________
Railroads - 8.00%
CSX Corporation 1,000 8,636.48 48,250.00
_________ _________
Total investments - 73.95% (A) $ 142,585.51 446,225.00
Other assets less _____________
liabilities - 26.05% 157,157.26
____________
Net assets - 100% $ 603,382.26
____________
____________
(A) Represents the aggregate cost of investments for
federal income tax purposes
See notes to financial statements.
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Wade Fund, Inc.
Notes to Financial Statements
June 30, 1996
_________________________________________________________________________
Note (1) - Significant Accounting Policies
Income Taxes
Since it is the policy of the Fund to qualify each year as a regulated
investment company under Section 851 of the Internal Revenue Code and to
distribute all, or substantially all, of its taxable income, including
realized net gain on investments, it is not expected that federal income
tax will ordinarily constitute a major item of expense. Therefore, no
provision is made for such tax on unrealized appreciation on investments.
However, on the accrual basis of accounting, provision for federal income
tax and state franchise and excise tax on net income and on net realized
gain on investments is made when applicable.
Equalization
The Company follows the accounting practice known as equalization by
which a portion of the proceeds from sales and costs of repurchases of
capital shares equivalent, on a per share basis, to the amount of
distributable net investment income on the date of the transaction is
credited or charged to undistributed net income. As a result, undistributed
investment income per share is unaffected by sales or redemptions of fund
shares.
Investments
Investments in securities traded on a national securities exchange are
valued at the last reported sales price on the last business day of the
period; securities traded in the over-the-counter market and listed
securities for which no sale was reported on that date are valued at the
last reported bid price.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles 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 revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Note (2) - Capital Stock
The Fund is registered under the Investment Company Act of 1940, as
amended, as an open-end, nondiversified management company with 100,000
shares of no par value common capital stock authorized.
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Note (3) - Investment Advisory Fee
Advisory service fee is paid at the annual rate of three-fourths of
one percent on the net value of investment assets and is paid at the end
of each quarter at the rate of three-sixteenths of one percent of the net
value of such assets on the last day of the quarter on which the New York
Stock Exchange is open. Maury Wade, Jr., who is president and director of
the Fund, received $2,276.03 for his services as investment advisor.
Note (4) - Supplementary Information
Net asset values and dividends declared per share, for the four years
and six months ended June 30, 1996 are as follows:
Dividends Declared
_____________________________
From
Year Net From Realized
Ended Asset Net Capital
December 31, Value Income Gains
____________ _____ ______ ________
1992 30.65 .19 2.75
1993 30.73 __ 2.77
1994 29.64 .06 .61
1995 33.60 .15 2.08
Six months ended
June 30, 1996 34.79 -- --
Note (5) - Concentration of Risk
At June 30, 1996, the Fund had a concentration of credit risk with a
certain financial institution in the form of a bank cash account. If the
financial institution failed to completely perform under the terms of the
financial instruments, the exposure for credit loss would be in the amount
of the financial instruments less amounts covered by regulatory insurance.
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WADE FUND, INC.- FINANCIAL HIGHLIGHTS
Complete financial statements will be found elsewhere in this prospectus.
The following is a condensation of certain pertinent information.
(It has been audited by the Fund's independent accountant, whose report
appears elsewhere in this prospectus.) PER SHARE INCOME AND CAPITAL
CHANGES - (For a share outstanding throughout the year ending December 31st)
<CAPTION>
Six Months Ending
1995* June 30, 1996
__________________________________
<S> <C> <C>
Net Asset Value, Beginning
of Period . . . . . . . . . . $29.64 $33.60
Income From Investment
Operations:
Net Investment Income . . . . $0.12 $0.10
Net Realized and Unrealized
Gains (Losses) on Securities $6.07 $1.09
____________________________________
Total From Investment Operations $6.19 $1.19
Less Distributions:
Dividends from Net Income . . . $0.15 $0.00
Distributions from Realized
Gains on Securities . . . . . $2.08 $0.00
___________________________________
Net Asset Value, End
of Period . . . . . . . . . . . $33.60 $34.79
===================================
Total Return . . . . . . . . . . 20.83% 3.54%
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios/Supplemental Data:
Net Assets, End of Period . . $584,347 $603,402
Ratio of Expenses to
Average Net Assets . . . . . 2.76% 2.56% (annualized)
Ratio of Net Income to
Average Net Assets . . . . . 0.39% 0.56% (annualized)
Portfolio Turnover Rate . . . 0.00% 0.00%
Number of Shares Outstanding,
End of Period . . . . . . . 17,391 17,346
*See accompanying notes and independent auditor's report.
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