WADE FUND, INC.
Suite 2224
5100 Poplar Avenue
Memphis, Tennessee 38137
August 9, 1999
TO THE STOCKHOLDERS:
Submitted, herewith, is the statement covering operations of Wade Fund, Inc.,
from January 1, 1999 through June 30, 1999.
For the first six months net ordinary income amounted to $828.09.
The net asset value per share as of June 30, 1999 was $45.92. This compares
with $39.11 as of December 31, 1999.
Sincerely yours,
WADE FUND, INC.
Maury Wade, Jr.
President
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Wade Fund, Inc.
Audited Financial Statements
June 30, 1999
Rhea & Ivy, P.L.C.
Certified Public Accountants & Business Advisors
Suite 250
6000 Poplar Ave
Memphis, TN 38119-3971
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Wade Fund, Inc.
Index
June 30, 1999
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 in 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,
1999, 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 30,1999, 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, 1999, 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 30,1999, 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 $135,840.93) $ 646,343.75
Money market mutual fund (cost $208,004.79) 208,004.79
Cash on demand deposit 5,537.99
Dividends receivable 1,240.50
Interest receivable 826.65
-----------
Total assets 861,953.68
-----------
Liabilities
Accrued expenses 4,670.92
State franchise taxes payable 420.39
-----------
Total liabilities 5,091.31
-----------
Net assets applicable to 18,659 shares of
outstanding capital stock $ 856,862.37
============
Net asset value per share of outstanding
capital stock 45.92
============
Offering and redemption price per share $ 45.92
============
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 18,659 shares $333,811.55
Accumulated net realized gain on investment
(computed on identified cost basis) $1,563,900.44
Accumulated distributions on net realized gain 1,557,931.77 5,968.67
-------------
Unrealized appreciation on investments 510,502.82
-----------
Total capital 850,283.04
Undistributed net income 6,579.33
-----------
Net assets applicable to 18,659 shares of
outstanding capital stock $ 856,862.37
===========
See notes to financial statements.
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Wade Fund, Inc.
Statement of Operations
For the Six Months Ended June 30, 1999
Income
Dividends $5,505.50
Interest 4,712.59
-----------
10,218.09
-----------
Expenses
Advisory fee 3,007.12
Legal fee 2,400.00
Accounting fee 1,734.94
Custodial fee 1,020.00
Other expenses 807.94
Taxes, including federal, state and local 420.00
-----------
9,390.00
-----------
Net investment income $828.09
===========
Ratio of total expenses to total investment income 91.90%
===========
Statement of Unrealized Appreciation on Investments
For the Six Months Ended June 30, 1998
Balance at January 1, 1999 $384,296.57
Balance at June 30, 1999 510,502.82
-----------
Increase in unrealized appreciation $126,206.25
===========
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, 1999
Net Assets
Net assets at January 1, 1999, including $729,828.03
$5,751.24 in undistributed net income
Operations
Net investment income per statement of operations 828.09
Increase in unrealized appreciation of investments 126,206.25
-----------
Net assets at June 30, 1999, including
$6,579.33 in undistributed net income $856,862.37
===========
See notes to financial statements.
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Wade Fund, Inc.
Schedule of Investments
June 30, 1999
Number of Market
Shares Cost Value
---------- ---------- ----------
Common stocks - 75.42%
Aluminum - 10.11%
Alcoa, Inc. 1,400 $6,456.75 $86,625.00
---------- ----------
Automobile - 2.81%
Autozone (B) 800 23,132.00 24,100.00
---------- ---------
Bank and Finance - 18.04%
J. P. Morgan and Co. Inc. 500 1,833.19 70,250.00
First Tennessee National Corporation 2,200 20,881.67 84,287.50
---------- ----------
22,714.86 154,537.50
---------- ----------
Electronics - 13.44%
Texas Instruments, Inc. 800 1,072.95 115,200.00
---------- ----------
Insurance - 4.63%
Safeco Corporation 900 1,080.71 39,712.50
---------- ----------
Metals - 3.61%
Phelps Dodge Corp. 500 23,634.00 30,968.75
---------- ----------
Paper Products - 5.87%
International Paper, Inc. 1,000 24,828.25 50,250.00
---------- ----------
Petroleum Services - 4.45%
Schlumberger, Ltd. 600 11,084.10 38,212.50
---------- ----------
Pharmaceutical - 8.22%
Bristol Myers Squibb 1,000 14,928.13 70,437.50
---------- ----------
Railroads - 4.24%
CSX Corporation 800 6,909.18 36,300.00
---------- ----------
Total common stocks - 75.42% 135,840.93 646,343.75
---------- ----------
Money Market Mutual Funds - 24.28%
First Funds U.S. Government 208,004.79 208,004.79 208,004.79
Portfolio ---------- ----------
Total money market funds 208,004.79 208,004.79
---------- ----------
Total investments (A) 343,845.72 854,348.54
========== ----------
Other assets less liabilities - .30% 2,513.83
----------
Net assets - 100% $856,862.37
===========
(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, 1999
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 $3,007.12
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, 1999 are as follows;
Dividends Declared
------------------
From
Net From Realized
Year Ended Asset Net Capital
December 31, Value Income Gains
1995 33.60 .15 2.08
1996 34.81 .10 3.04
1997 38.88 .05 2.91
1998 39.11 .03 1.67
Six months ended June 30, 1999 45.92 - -
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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
1998 June 30,1999*
<S> <C> <C>
Net Asset Value, Beginning
of Period $38.88 $39.11
Income From Investment Operations:
Net Investment Income $ 0.03 $ 0.04
Net Realized and Unrealized
Gains (Losses) on Securities$ 1.90 $ 6.77
-------------------------
Total From Investment Operations$ 1.93 $ 6.81
Less Distributions:
Dividends from Net Income $ 0.03 $ -
Distributions from Realized
Gains on Securities $ 1.67 $ -
-------------------------
Net Asset Value, End
of Period $39.11 $45.92
=========================
Total Return 5.16% 17.41%
Ratios/Supplemental Data:
Net Assets, End of Period $729,828 $856,862
Ratio of Expenses to
Average Net Assets 2.71% 2.42% (annualized)
Ratio of Net Income to
Average Net Assets 0.06% 0.21% (annualized)
Portfolio Turnover Rate 0.00% 0.00%
Number of Shares Outstanding,
End of Period 18,659 18,659
*See accompanying notes and independent auditor's report.
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