WADE FUND INC.
Audited Financial Statements
Wade Fund, Inc.
Memphis, Tennessee
December 31, 1997
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WADE FUND, INC.
Suite 2224
5100 Poplar Avenue
Memphis, Tennessee 38137
August 14, 1998
TO THE STOCKHOLDERS:
Submitted, herewith, is the statement covering operations of Wade
Fund, Inc., from January 1, 1998 through June 30, 1998.
The first six months net ordinary income for the year amounted to
$372.70.
The net asset value per share as of June 30, 1998 was $39.05. This
compares with $38.88 as of December 31, 1997.
Sincerely yours,
WADE FUND, INC.
s/ Maury Wade, Jr.
Maury Wade, Jr.
President
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Wade Fund, Inc.
Index
June 30, 1998
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
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RHEA & IVY, P.L.C.
Certified Public Accountants & Business Advisors
Suite 250 6000 Poplar Avenue Memphis, TN 38119-3971
TEL 901-761-3000 FAX 901-761-9667
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, 1998, and the related statements of operations, 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 30,1998, 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, 1998, 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 4) for the four years and
six months ended June 30,1998, 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 7, 1998
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Wade Fund, Inc.
Statement of Assets and Liabilities
June 30, 1998
Assets
Investments at closing market quotations:
Common stock (cost $140,993.11) $ 523,081.25
Money market mutual fund (cost $182,871.29) 182,871.29
Cash on demand deposit 6,048.27
Dividends receivable 1,210.50
Interest receivable 837.24
Prepaid bond premium 799.11
------------
Total assets 714,847.66
------------
Liabilities
Accrued expenses 6,056.70
State franchise taxes payable 405.00
------------
Total liabilities 6,461.70
------------
Net assets applicable to 18,142 shares of
outstanding capital stock $ 708,385.96
============
Net asset value per share of outstanding
capital stock $ 39.05
============
Offering and redemption price per share $ 39.05
============
Statement of Sources of Net Assets
June 30, 1998
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 18,142 shares $ 314,235.21
Accumulated net realized gain on investment
(computed on identified cost basis) $ 1,533,744.31
Accumulated distributions on net realized
gain 1,527,886.80 5,857.51
------------
Unrealized appreciation on investments 382,088.14
------------
Total capital 702,180.86
Undistributed net income 6,205.10
------------
Net assets applicable to 18,142 shares of
outstanding capital stock $ 708,385.96
============
See notes to Financial Statements.
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Wade Fund, Inc.
Statement of Operations
For the Six Months Ended June 30, 1998
Income
Dividends $ 5,101.00
Interest 4,820.70
------------
9,921.70
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Expenses
Advisory fee 2,640.00
Legal fee 2,400.00
Accounting fee 1,920.00
Custodial fee 990.00
Other expenses 1,179.00
Taxes, including federal, state
and local 420.00
------------
9,549.00
------------
Net investment income $ 372.70
============
Ratio of total expenses to total
investment income 96.24%
============
Statement of Unrealized Appreciation on Investments
For the Six Months Ended June 30, 1998
Balance at January 1, 1998 $ 379,406.89
Balance at June 30, 1998 382,088.14
------------
Increase in unrealized appreciation $ 2,681.25
============
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, 1998
Net Assets
Net assets at January 1, 1998, including $ 705,332.01
$5,832.40 in undistributed net income
Operations
Net investment income per statement of operations 372.70
Increase in unrealized appreciation of investments 2,681.25
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Net assets at June 30, 1998, including
$6,205.10 in undistributed net income $ 708,385.96
==============
See notes to financial statements.
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Wade Fund, Inc.
Schedule of Investments
June 30, 1998
Number of Market
Shares Cost Value
Common stocks - 73.84%
Aluminum - 6.52%
Aluminum Co. of America 700 $ 6,456.75 $ 46,156.25
------------ -----------
Automobile - 3.60%
Autozone (B) 800 $ 23,132.00 $ 25,550.00
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Bank and Finance - 18.96%
J. P. Morgan and Co. Inc. 500 1,833.19 58,531.25
First Tennessee National
Corporation 2,400 22,780.00 75,750.00
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24,613.19 134,281.25
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Electronics - 8.23%
Texas Instruments, Inc. 1,000 1,341.18 58,312.50
------------ -----------
Insurance - 5.77%
Safeco Corporation 900 1,080.71 40,837.50
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Metals - 4.04%
Phelps Dodge Corp. 500 23,634.00 28,593.75
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Paper Products - 6.07%
International Paper, Inc. 1,000 24,828.25 43,000.00
------------ -----------
Petroleum Services - 5.78%
Schlumberger, Ltd. 600 11,084.10 40,987.50
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Pharmaceutical - 9.74%
Bristol Myers Squibb 600 17,913.75 68,962.50
------------ -----------
Railroads - 5.13%
CSX Corporation 800 6,909.18 36,400.00
------------ -----------
Total common stocks - 73.84% 140,993.11 523,081.25
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Money Market Mutual Funds - 25.82%
First Funds U.S.
Government Portfolio 182,871.29 182,871.29 182,871.29
------------ -----------
Total money market funds 182,871.29 182,871.29
------------ -----------
Total investments (A) $ 323,864.40 705,952.54
============
Other assets less liabilities - .34% 2,433.42
-----------
Net assets - 100% $ 708,385.96
============
(A) Represents the aggregate cost of investments for federal income tax
purposes
(B) Non-income producing
See notes to financial statements.
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WADE FUND, INC.
Notes to Financial Statements
June 30, 1998
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.
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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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 $2,640.00
for his services as investment advisor.
4. Supplementary Information
Net asset values and dividends declared per share, for the four years and six
months ended June 30, 1998 are as follows;
Dividends Declared
---------------------
From
Net From Realized
Year 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
1997 38.88 .05 2.91
Six months ended
June 30, 1998 39.05 - -
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WADE FUND, INC. - FINANCIAL HIGHLIGHTS
Complete financial statements will be found elsewhere in this report.
The following is a condensation of certain pertinent information.
(It has been audited by the Fund's independent accountant, whose report is
also included.) PER SHARE INCOME AND CAPITAL CHANGES - (For a share
outstanding throughout the year ending December 31st)
Six Months Ending
1997 June 30,1998*
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Net Asset Value, Beginning
of Period......................... $34.81 $38.88
Income From Investment Operations:
Net Investment Income............. $ 0.05 $ 0.02
Net Realized and Unrealized
Gains (Losses) on Securities $ 6.98 $ 0.15
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Total From Investment Operations $ 7.03 $ 0.17
Less Distributions:
Dividends from Net Income......... $ 0.05 $ 0.00
Distributions from Realized
Gains on Securities............. $ 2.91 $ 0.00
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Net Asset Value, End
of Period.......................... $38.88 $39.05
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Total Return........................ 20.25% 0.44%
Ratios/Supplemental Data:
Net Assets, End of Period $705,332 $708,385
Ratio of Expenses to
Average Net Assets.............. 2.72% 2.64% (annualized)
Ratio of Net Income to
Average Net Assets.............. 0.12% 0.10% (annualized)
Portfolio Turnover Rate............. 4.43% 0.00%
Number of Shares Outstanding,
End of Period..................... 18,142 18,142
*See accompanying notes and independent auditor's report.
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