WADE FUND INC.
Audited Financial Statements
Wade Fund, Inc.
Memphis, Tennessee
December 31, 1996
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WADE FUND, INC.
Suite 2224
5100 Poplar Avenue
Memphis, Tennessee 38137
March 14, 1997
TO THE STOCKHOLDERS:
Submitted, herewith, is the statement covering operations of Wade Fund, Inc.,
from January 1, 1996 through December 31, 1996.
The net ordinary income for the year amounted to $1,816.42. Net profit
from the sale of securities was $52,026.76.
The dividend from net ordinary income was $.10 per share. The dividend
from net profit from the sale of securities was $3.04 per share.
The net asset value per share as of December 31, 1996 was $34.81. This
compares with $33.60 as of December 31, 1995.
Sincerely yours,
WADE FUND, INC.
s/ Maury Wade, Jr.
Maury Wade, Jr.
President
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RHEA & IVY, P.L.C.
Certified Public Accountants & Business Advisors
Suite 250 - 6000 Poplar Avenue - Memphis, Tennessee 38119
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 December 31, 1996, and the related statements of operations, realized
gain on investments, unrealized appreciation on investments and changes in
net assets for the year then ended, and supplementary information
(note 5) for the five years 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 December 31, 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 December 31, 1996, and the results of its operations and
the changes in its net assets for the year then ended, in conformity
with generally accepted accounting principles. Also, in our opinion,
the supplementary information (note 5) for the five years ended
December 31, 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
January 9, 1997
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Wade Fund, Inc.
Statement of Assets and Liabilities
December 31, 1996
___________________________________________________________________________
Assets
______
Investments at closing market quotations:
Common stock (cost $128,877.40) $ 434,231.25
Cash on demand deposit 6,717.09
Cash on deposit - safekeeping account 189,487.83
Dividends receivable 1,356.00
Interest receivable 721.08
Prepaid bond premium 496.11
___________
Total assets 633,009.36
___________
Liabilities
___________
Accrued expenses 3,446.22
State franchise taxes payable 717.83
Federal and state income taxes payable 36.44
_______
Total liabilities 4,200.49
_______
Net assets applicable to 18,066 shares of
outstanding capital stock $ 628,808.87
____________
____________
Net asset value per share of outstanding
capital stock $ 34.81
____________
____________
Offering and redemption price per share $ 34.81
____________
____________
Statement of Sources of Net Assets
__________________________________
December 31, 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 18,066 shares $ 311,601.43
Accumulated net realized gain
on investment (computed on
identified cost basis) $ 1,483,452.37
Accumulated distributions
on net realized gain 1,477,494.33 5,958.04
____________
Unrealized appreciation on investments 305,353.85
__________
Total capital 622,913.32
Undistributed net income 5,895.55
__________
Net assets applicable to 18,066 shares of
outstanding capital stock $ 628,808.87
__________
__________
See notes to financial statements.
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Wade Fund, Inc.
Statement of Operations
For the Year Ended December 31, 1996
_________________________________________________________________________
Income
Dividends $ 11,553.75
Interest 7,837.92
___________
19,391.67
___________
___________
Expenses
Advisory fee 4,613.15
Legal fee 4,596.25
Accounting fee 3,650.00
Custodial fee 1,725.00
Other expenses 2,246.85
Taxes, including federal, state and local 744.00
___________
17,575.25
___________
Net income $ 1,816.42
___________
Ratio of total expenses to total income 90.63%
Statement of Realized Gain on Investments
_________________________________________
For the Year Ended December 31, 1996
____________________________________
Realized gain from security transactions
Proceeds from sale $ 65,734.87
Cost of securities sold (identified cost basis) 13,708.11
_________
Net gain on investments (gain on average
cost basis $52,026.76) $ 52,026.76
___________
___________
Statement of Unrealized Appreciation on Investments
___________________________________________________
For The Year Ended December 31, 1996
____________________________________
Balance at January 1, 1996 $ 284,676.99
Balance at December 31, 1996 305,353.85
___________
Increase in unrealized appreciation $ 20,676.86
___________
___________
See notes to financial statements.
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Wade Fund, Inc.
Statement of Changes in Net Assets
For the Year Ended December 31, 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 $ 1,816.42
Net equalization credits
(debits) included in
price of shares sold
and repurchased (23.46)
Distribution to shareholders
of $.10 a share (1,712.30)
__________
Decrease in balance of undistributed
net income 80.66
Realized Gain or Loss on Investments
Net gain from sale of investments 52,026.76
Distribution to shareholders
of $3.04 a share (52,053.92)
___________
Decrease in undistributed
net realized gain (27.16)
Increase in unrealized appreciation
of investments 20,676.86
Capital Stock Issued and Repurchased
(exclusive of equalization
debits and credits)
Amounts received from
subscriptions to 1,242
shares of capital stock 43,154.61
Less amounts paid for capital
stock repurchased (19,422.96)
__________
Increase in capital stock 23,731.65
Net assets at December 31, 1996, including
$5,895.55 in undistributed net income $ 628,808.87
____________
____________
See notes to financial statements.
- 6 -
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Wade Fund, Inc.
Schedule of Investments
December 31, 1996
_____________________________________________________________________________
Number of Market
Shares Cost Value
_________ ___________ _________
Common stocks - 69.06%
Aluminum - 7.10%
Aluminum Co. of America 700 $ 6,456.75 $ 44,625.00
________ _________
Bank and Finance - 14.92%
J. P. Morgan and Co. Inc. 500 1,833.19 48,812.50
First Tennessee National
Corporation 1,200 22,780.00 45,000.00
_________ _________
24,613.19 93,812.50
_________ _________
Electronics - 6.08%
Texas Instruments, Inc. 600 1,609.41 38,250.00
_________ _________
Gold - 4.84%
Placer Dome, Inc. 1,400 1,082.11 30,450.00
_________ _________
Insurance - 5.65%
Safeco Corporation 900 1,080.71 35,493.75
_________ _________
Metals - 5.37%
Phelps Dodge Corp. 500 23,634.00 33,750.00
_________ _________
Paper Products - 6.44%
International Paper, Inc. 1,000 24,828.25 40,500.00
_________ _________
Petroleum Services - 6.35%
Schlumberger, Ltd. 400 14,778.80 39,950.00
_________ _________
Pharmaceutical - 6.93%
Bristol Myers Squibb 400 23,885.00 43,600.00
_________ _________
Railroads - 5.38%
CSX Corporation 800 6,909.18 33,800.00
_________ _________
Total investments - 69.06% (A) $ 128,877.40 434,231.25
_____________
Other assets less _____________
liabilities - 30.94% 194,577.62
____________
Net assets - 100% $ 628,808.87
____________
____________
(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
December 31, 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. During the year ended December 31, 1996, proceeds
of securities sold were $65,734.87.
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) - Dividends and Distributions
On December 13, 1996, the Board of Directors declared a dividend
distribution from net realized gains from security transactions of $3.04
per share and from net income of $.10 per share. The dividends were paid
December 20, 1996 to stockholders of record December 12, 1995.
Note (4) - 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 theend
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 $4,613.15 for his services as investment advisor.
Note (5 - Supplementary Information
Net asset values and dividends declared per share, for the five years
ended December 31, 1998 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
1996 34.81 .10 3.04
Note (6) - Concentration of Risk
At December 31, 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
The following is a condensation of certain pertinent information.
PER SHARE INCOME AND CAPITAL CHANGES - (For a share outstanding throughout
the year ending December 31st)
<CAPTION>
Year Ending December 31
1992 1993 1994 1995 1996
___________________________________________________________
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period . . . . . . . . . . $31.24 $30.65 $30.73 $29.64 $33.60
Income From Investment
Operations:
Net Investment Income . . . . $0.21 ($0.08) $0.08 $0.12 $0.09
Net Realized and Unrealized
Gains (Losses) on Securities $2.14 $2.93 ($0.50) $6.07 $4.26
_____________________________________________________________
Total From Investment Operations $2.35 $2.85 ($0.42) $6.19 $4.35
Less Distributions:
Dividends from Net Income . . . $0.19 $0.00 $0.06 $0.15 $0.10
Distributions from Realized
Gains on Securities . . . . . $2.75 $2.77 $0.61 $2.08 $3.04
_____________________________________________________________
Net Asset Value, End
of Period . . . . . . . . . . . $30.65 $30.73 $29.64 $33.60 $34.81 $34.79
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Total Return . . . . . . . . . . 7.57% 9.28% -1.31% 20.83% 12.96%
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios/Supplemental Data:
Net Assets, End of Period . . $536,846 $532,330 $506,200 $584,347 $628,809
Ratio of Expenses to
Average Net Assets . . . . . 2.61% 2.64% 2.84% 2.76% 2.86%
Ratio of Net Income to
Average Net Assets . . . . . 0.59% -0.26% 0.20% 0.39% 0.30%
Portfolio Turnover Rate . . . 6.13% 17.68% 0.00% 0.00% 0.00%
Number of Shares Outstanding,
End of Period . . . . . . . 17,518 17,322 17,080 17,391 18,066
*See accompanying notes and independent auditor's report.
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