WADE FUND, INC.
5100 Poplar Avenue
Memphis, Tennessee 38137
February 15, 2000
TO THE STOCKHOLDERS:
Submitted, herewith, is the statement covering operations of Wade Fund, Inc.,
from January 1, 1999 through December 31, 1999.
Net ordinary income for the year amounted to $2,992.33. Net profit from the
sale of securities was $59,531.36.
The dividend from net ordinary income was $.15 per share. The dividend from net
profit from the sale of securities was $3.22 per share.
The net asset value per share as of December 31, 1999 was $43.62. This compares
with $39.11 as of December 31, 1998.
Sincerely yours,
WADE FUND, INC.
/S/
Maury Wade, Jr.
President
<PAGE>
Wade Fund, Inc.
Index
December 31, 1999
Independent Auditor's Report . . . . . . . . . . . . . . . . . Page 3
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . .4
Statement of Assets and Liabilities . . . . . . . . . . . . . . . .5
Statement of Sources of Net Assets . . . . . . . . . . . . . . . . .5
Statement of Operations . . . . . . . . . . . . . . . . . . . . . .6
Statement of Unrealized Gain on Investments . . . . . . . . . . . .6
Statement of Unrealized Appreciation in Investments . . . . . . . .6
Statement of Changes in Net Assets . . . . . . . . . . . . . . . . .7
Schedule of Investments . . . . . . . . . . . . . . . . . . . . . .8
Notes to Financial Statements . . . . . . . . . . . . . . . . . . .9
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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 December
31, 1999, 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 (Page 4 and 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, 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 December 31, 1999, 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 (Page
4 and Note 5) for the five years ended December 31, 1999, is fairly stated in
all material respects in relation to the financial statements taken as a whole.
/s/Rhea & Ivy, P.L.C.
January 7, 2000
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<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Wade Fund, Inc.
Financial Highlights
For the Years Ended December 31, 1999, 1998, 1997, 1996 and 1995
December 31, December 31, December 31, December 31, December 31,
1995 1996 1997 1998 1999
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Per Share Income and Capital
Changes (for a share outstanding
throughout the year ending:)
Net asset value, beginning of year $29.64 $33.60 $34.81 $38.88 $39.11
Income from Investment Operations
Net investment income 0.12 0.09 0.05 0.03 0.16
Net realized and unrealized gains
(losses on securities) 6.07 4.26 6.98 1.90 7.72
------------ ------------ ------------ ------------ ------------
6.19 4.35 7.03 1.93 7.88
------------ ------------ ------------ ------------ ------------
Less Distributions
Dividends from net income 0.15 0.10 0.05 0.03 0.15
Distributions from realized gains
on securities 2.08 3.04 2.91 1.67 3.22
------------ ------------ ------------ ------------ ------------
2.23 3.14 2.96 1.70 3.37
------------ ------------ ------------ ------------ ------------
Net asset value, end of year $33.60 $34.81 $38.88 $39.11 $43.62
============ ============ ============ ============ ============
Total return 20.83% 12.96% 20.25% 5.16% 21.71%
Supplemental Data
Net assets, end of year $ 584,347 $ 628,809 $ 705,332 $ 729,828 $ 879,384
Ratio of expenses to average
net assets 2.76% 2.86% 2.72% 2.71% 2.20%
Ratio of net investment income
to average net assets 0.39% 0.30% 0.12% 0.06% 0.37%
Portfolio turnover rate 0.00% 0.00% 4.43% 0.00% 0.00%
Number of shares outstanding,
end of period 17,391 18,066 18,142 18,659 20,161
Note: Complete financial statements will be found elsewhere in this report. The above
information is a condensation of certain pertinent information. See the report of the
independent public accountant and the accompanying notes to the financial statements.
See notes to financial statements.
</TABLE>
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<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Wade Fund, Inc.
Statement of Assets and Liabilities
December 31, 1999
<S> <C> <C>
Assets
Investments at closing market quotations:
Common stock (cost $135,436.90) $ 604,070.25
Money market mutual fund (cost $275,264.77) 275,264.77
Cash on demand deposit 3,506.98
Dividends receivable 1,096.50
Interest receivable 1,062.18
Subscription receivable 834.48
Prepaid bond premium 210.11
-------------
Total assets 886,045.27
-------------
Liabilities
Accrued expenses 5,820.39
State franchise taxes payable 840.39
-------------
Total liabilities 6,660.78
-------------
Net assets applicable to 20,161 shares of
outstanding capital stock $ 879,384.49
=============
Net asset value per share of outstanding capital stock $ 43.62
=============
Offering and redemption price per share $ 43.62
=============
Statement of Sources of Net Assets
December 31, 1999
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 20,161 shares $398,868.34
Accumulated net realized gain on investment
(computed on identified cost basis) $1,623,431.80
Accumulated distributions on net realized gain 1,617,508.21 5,923.59
-------------
Unrealized appreciation on investments 468,633.35
-----------
Total capital 873,425.28
Undistributed net income 5,959.21
Net assets applicable to 20,161 shares of outstanding
capital stock $ 879,384.49
=============
See notes to financial statements.
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
Wade Fund, Inc.
Statement of Operations
For the Year Ended December 31, 1999
<S> <C>
Income
Dividends $ 10,688.00
Interest 10,084.70
---------------
20,772.70
---------------
Expenses
Advisory fee 6,172.43
Legal fee 4,800.00
Accounting fee 3,329.63
Custodial fee 2,040.00
Other expenses 598.31
Taxes, including federal, state and local 840.00
---------------
17,780.37
---------------
Net investment income $ 2,992.33
===============
Ratio of total expenses to total investment income 85.59%
======
Statement of Realized Gain on Investments
For The Year Ended December 31, 1999
Realized gain from security transactions
Proceeds from sale $ 59,930.15
Cost of securities sold (identified cost basis) 398.79
Net gain on investments ---------------
(gain on average cost basis $50,291.94) $ 59,531.36
===============
Statement of Unrealized Appreciation on Investments
For The Year Ended December 31, 1999
Balance at January 1, 1999 $ 384,296.57
Balance at December 31, 1999 468,633.35
---------------
Increase in unrealized appreciation $ 84,336.78
===============
See notes to financial statements.
</TABLE>
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<PAGE>
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<TABLE>
<CAPTION>
Wade Fund, Inc.
Statement of Changes in Net Assets
For the Year Ended December 31, 1999
<S> <C> <C>
Net Assets
Net assets at January 1, 1999, including $ 729,828.03
$5,751.24 in undistributed net income
Income (Expenses)
Net income per statement of income and expenses $2,992.33
Net equalization credits (debits) included in price
of shares sold and repurchased (9.06)
Distributions to shareholders of $.15 (2,775.30)
----------
Increase in balance of undistributed net income 207.97
Realized Gain or Loss on Investments
Net gain from sale of investments 59,531.36
Distribution to shareholders of $3.22 a share (59,576.44)
----------
Decrease in undistributed net realized gain (45.08)
Increase in unrealized appreciation of investments 84,336.78
Capital Stock Issued and Repurchased
(exclusive of equalization debits and credits)
Amounts received from subscriptions to 1,659
shares of capital stock 72,042.08
Less amounts paid for capital stock repurchased (6,985.29)
Increase in capital stock ---------- 65,056.79
-----------
Net assets at December 31, 1999, including
$5,959.21 in undistributed net income $879,384.49
============
</TABLE>
See notes to financial statements.
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<TABLE>
<CAPTION>
Wade Fund, Inc.
Schedule of Investments
December 31, 1999
Number of Market
Shares Cost Value
--------- ----------- --------------
<S> <C> <C> <C>
Common Stocks - 68.69%
Aluminum - 13.21%
Alcoa, Inc. 1,400 $ 6,456.75 $ 116,200.00
Automobile - 2.94% ----------- -------------
Autozone (B) 800 23,132.00 25,850.00
----------- -------------
Bank and Finance - 14.33%
J. P. Morgan and Co. Inc. 500 1,833.19 63,312.50
First Tennessee National Corporation 2,200 20,881.67 62,700.00
----------- -------------
22,714.86 126,012.50
----------- -------------
Electronics - 10.99%
Texas Instruments, Inc. 1,000 670.59 96,625.00
----------- -------------
Insurance - 2.55%
Safeco Corporation 900 1,080.71 22,387.50
----------- -------------
Metals - 3.83%
Phelps Dodge Corp. 500 23,634.00 33,687.50
----------- -------------
Paper Products - 6.42%
International Paper, Inc. 1,000 24,828.25 56,437.50
----------- -------------
Petroleum Services - 4.28%
Schlumberger, Ltd. 600 9,871.50 33,675.00
Transocean Sedco Forex 116 1,210.93 3,907.75
----------- -------------
11,082.43 37,582.75
Pharmaceutical - 7.30%
Bristol Myers Squibb 1,000 14,928.13 64,187.50
----------- -------------
Railroads - 2.85%
CSX Corporation 800 6,909.18 25,100.00
----------- -------------
Total common stock 135,436.90 604,070.25
----------- -------------
Money Market Mutual Funds - 31.30%
First Funds U.S. Government
Portfolio 275,264.77 275,264.77 275,264.77
Total money market funds 275,264.77 275,264.77
----------- -------------
Total investments (A)$ 410,701.67 879,335.02
=========== =============
Other assets less liabilities - .01% 49.47
-------------
Net assets - 100% $ 879,384.49
=============
</TABLE>
(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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<PAGE>
Wade Fund, Inc.
Notes to Financial Statements
December 31, 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. During the
year ended December 31, 1999, proceeds of securities sold were $59,930.15.
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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<PAGE>
3. Dividends and Distributions
On December 19, 1999, the Board of Directors declared a dividend distribution
from net realized gains from security transaction of $3.22 per share and from
net income of $.15 per share. The dividends were paid December 17, 1999 to
stockholders of record December 9, 1999.
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 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 $6,172.43 for his
services as investment advisor.
5. Supplementary Information
Net asset values and dividends declared per share, for the five years ended
December 31, 1999 are as follows:
<TABLE>
<CAPTION>
Dividends Declared
------------------
From
Net From Realized
Year Ended Asset Net Capital
December 31, Value Income Gains
------------ ----- ------ --------
<S> <C> <C> <C>
1995 33.60 .15 2.08
1996 34.81 .10 3.04
1997 38.88 .05 2.91
1998 39.11 .03 1.67
1999 43.62 .15 3.22
</TABLE>
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