Wayne Hummer Money Fund Trust
Annual
Financial Statements
Audited
March 31, 1996
<PAGE>
Wayne Hummer Money Fund Trust
Photographic image of David P. Poitras.
Dear Fellow Shareholder:
We are pleased to present the annual financial statements of Wayne Hummer
Money Fund Trust (the "Trust") for the year ended March 31, 1996. Net assets
under management at the end of the year totaled $226,273,080. Since its
inception, the Trust has continued to meet its objectives of liquidity and
stability, which are the most important considerations of short-term
investing.
The seven day average yield on the Trust's portfolio for the period ended
March 31, 1996, was 4.58%; if dividends were reinvested the effective yield
was 4.67%. For the year ended March 31, 1996, the Trust provided a total
return of 5.18%, assuming reinvestment of dividends. Since these figures
represent historical data, future yields may be higher or lower.
The policies and procedures of the Trust adhere to the strict criteria used by
rating agencies to assign the highest rating to money market funds. The Trust
invests only in high quality commercial instruments, does not purchase foreign
instruments and limits itself to dealing with banks that have $1 billion or
more in assets. The Trust also pays close attention to the maturity structure,
credit quality, diversification of issuers and industries, and market price
exposure of the Trust's portfolio.
As you are aware, the Trust offers its shareholders the ability to purchase
and redeem shares without penalties or cost, while providing a vehicle for
earning a yield on investments which reflects changes in current rates. The
Trust also offers the Systematic Investment Plan, check writing services and
provides, through Wayne Hummer Investments LLC, a personal representative to
whom shareholders may speak to regarding their accounts and through whom
investments may be made.
We appreciate your continued support of the Trust and ask that you call or
write us if you have any questions about the Trust or your account.
Sincerely,
David P. Poitras
President
Wayne Hummer Money Fund Trust
April 26, 1996
An investment in the Trust is not a deposit or obligation of or guaranteed or
insured by the U.S. Government, any bank, the Federal Deposit Insurance
Corporation, or any other agency. There can be no assurance that the Trust
will be able to maintain a stable net asset value of $1.00 per share.
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<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
MARCH 31, 1996
<S> <C>
ASSETS
Investments, at amortized cost .................... $225,528,781
Other assets:
Cash ..................................... 170,339
Interest receivable ...................... 891,816
Prepaid expenses ......................... 16,601
Insurance deposit ........................ 18,775
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Total assets ................. 226,626,312
LIABILITIES AND NET ASSETS
Dividends payable ................................. 192,385
Due to Wayne Hummer Management Company ............ 96,261
Accounts payable .................................. 64,586
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Total liabilities ............ 353,232
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Net assets applicable to Shares
outstanding, equivalent to $1.00 per Share $226,273,080
============
</TABLE>
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<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
YEAR ENDED
MARCH 31, 1996
<S> <C>
Interest income ....................... $11,377,867
Expenses:
Management fee ............... 976,895
Transfer agent fees .......... 138,000
Shareholder service agent fees 120,930
Custodian fees ............... 53,800
Registration costs ........... 63,354
Professional fees ............ 62,500
Printing costs ............... 41,687
Trustee fees ................. 23,500
Insurance costs .............. 20,031
Portfolio accounting fees .... 17,844
Other ........................ 20,601
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Total expenses ... 1,539,142
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Net increase in net assets resulting
from operations .............. $ 9,838,725
===========
</TABLE>
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<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED MARCH 31,
1996 1995
<S> <C> <C>
Operations:
Net investment income ............................................... $ 9,838,725 $ 6,129,160
Net realized loss on investments .................................... -- (164,303)
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Net increase in net assets resulting from operations ......................... 9,838,725 5,964,857
Dividends to Shareholders from net investment income ......................... (9,838,725) (6,129,160)
Capital contribution ......................................................... -- 164,303
Capital Share transactions (dollar amounts and number of Shares are the same):
Proceeds from Shares sold ........................................... 521,966,037 380,661,450
Shares issued upon reinvestment of dividends ........................ 9,405,599 5,862,996
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531,371,636 386,524,446
Less payments for Shares redeemed ................................... (460,346,433) (384,805,251)
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Increase due to Capital Share transactions .......................... 71,025,203 1,719,195
Net assets at beginning of the year .......................................... 155,247,877 153,528,682
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Net assets at end of the year ................................................ $ 226,273,080 $ 155,247,877
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</TABLE>
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<TABLE>
Financial Highlights
(For a Share outstanding throughout each year)
<CAPTION>
YEAR ENDED MARCH 31,
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR .......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income .............................. 0.05 0.04 0.02 0.03 0.05
Less dividends from investment income .............. (0.05) (0.04) (0.02) (0.03) (0.05)
------ ----------- ------- -------- ------
NET ASSET VALUE, END OF YEAR ................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== =========== ======= ======== ======
TOTAL RETURN ................................................ 5.18% 4.24% (a) 2.47% 2.83% 4.74%
RATIOS AND SUPPLEMENTARY DATA
Net assets , end of year ($000's) .................. 226,273 155,248 153,529 158,170 180,823
Ratio of total expenses to average net assets ...... .79% .80% .80% .79% .76%
Ratio of net investment income to average net assets 5.04% 4.16% 2.44% 2.80% 4.66%
<FN>
(a) The total return includes the effect of the capital contribution of
$0.0011 per Share. The return without the capital contribution would have been
4.12%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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<TABLE>
Portfolio of Investments
March 31, 1996
<CAPTION>
PRINCIPAL RATE MATURITY DATE
AMOUNT COMMERCIAL PAPER (56.6%) % (1996) VALUE
<S> <C> <C> <C> <C>
BANKING (6.9%)
5,000,000 SunTrust Banks Inc. 5.326 04/04 4,997,813
2,275,000 SunTrust Banks Inc. 5.286 04/05 2,273,683
2,400,000 First Chicago Financial Corp. 5.319 04/08 2,397,555
3,950,000 First Chicago Financial Corp. 5.429 04/18 3,940,039
1,971,000 First Chicago Financial Corp. 5.481 04/19 1,965,688
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15,574,778
BUSINESS FINANCE (5.9%)
4,454,000 General Electric Capital Corp. 5.402 04/10 4,448,077
3,890,000 Ford Motor Credit Co. 5.223 04/15 3,882,224
5,000,000 Ford Motor Credit Co. 5.189 04/24 4,983,708
----------
13,314,009
ELECTRIC UTILITIES (4.4%)
945,000 Florida Power Corp. 5.578 04/02 944,856
5,500,000 Wisconsin Power & Light Co. 5.285 04/03 5,498,408
3,500,000 Florida Power Corp. 5.512 04/08 3,496,304
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9,939,568
ELECTRONICS (3.1%)
2,000,000 Hewlett- Packard Co. 5.313 04/26 1,992,750
5,000,000 Hewlett- Packard Co. 5.095 05/21 4,965,347
----------
6,958,097
INSURANCE (7.1%)
7,927,000 AON Corp. 5.310 04/01 7,927,000
2,000,000 AON Corp. 5.464 05/06 1,989,578
4,000,000 Hartford Steam Boiler Inspection
and Insurance Co. 5.453 04/23 3,986,898
2,170,000 Hartford Steam Boiler Inspection
and Insurance Co. 5.416 05/23 2,153,387
----------
16,056,863
OIL AND GAS (5.4%)
2,525,000 Chevron Transport Corp. 5.312 04/12 2,520,965
5,000,000 Chevron Transport Corp. 5.163 05/01 4,978,875
4,680,000 Equitable Resources Inc. 5.462 06/11 4,630,804
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12,130,644
TELECOMMUNICATIONS (7.8%)
4,585,000 GTE Northwest Inc. 5.458 04/16 4,574,741
6,000,000 Ameritech Corp. 5.156 04/22 5,982,255
5,000,000 AT&T Corp. 5.151 04/29 4,980,322
2,160,000 Bellsouth Telecommunications Inc. 5.375 05/23 2,143,589
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17,680,907
MISCELLANEOUS (16.0%)
2,000,000 National Rural Utilities
Cooperative Finance Corp. 5.330 04/09 1,997,667
2,500,000 Illinois Tool Works Inc. 5.244 04/16 2,494,625
1,200,000 National Rural Utilities
Cooperative Finance Corp. 5.367 04/17 1,197,184
2,675,000 National Rural Utilities
Cooperative Finance Corp. 5.246 04/19 2,668,099
8,030,000 Norwest Financial Inc. 5.341 04/23 8,004,237
4,600,000 WMX Technologies Inc. 5.428 04/30 4,580,249
3,490,000 National Rural Utilities
Cooperative Finance Corp. 5.429 05/14 3,467,823
7,000,000 Illinois Tool Works Inc. 5.424 05/21 6,948,333
5,000,000 Consolidated Rail Corp. 5.195 05/30 4,958,372
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36,316,589
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TOTAL COMMERCIAL PAPER 127,971,455
</TABLE>
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<TABLE>
<CAPTION>
PRINCIPAL RATE MATURITY DATE
AMOUNT US GOVERNMENT AGENCIES (19.9%) % (1996) VALUE
<S> <C> <C> <C> <C>
2,000,000 Federal Farm Credit Bank (a) 5.550 04/01 2,000,287
500,000 Student Loan Marketing
Association (a) 5.340 04/02 499,982
500,000 Student Loan Marketing
Association (a) 5.495 04/02 500,238
1,000,000 Student Loan Marketing
Association (a) 5.610 04/22 1,000,000
6,000,000 Federal Farm Credit Bank 5.230 05/01 6,003,470
2,300,000 Federal Home Loan Mortgage Corp. 5.092 05/02 2,290,097
4,000,000 Federal National Mortgage
Association 5.025 05/03 3,981,831
5,305,000 Federal Farm Credit Bank 5.086 05/08 5,277,793
590,000 Federal National Mortgage
Association 5.200 05/10 586,740
5,000,000 Federal National Mortgage
Association 5.300 05/15 4,998,382
2,000,000 Federal Farm Credit Bank (a) 5.190 06/01 2,000,000
725,000 Federal Home Loan Bank 5.200 06/10 724,060
3,000,000 Federal Home Loan Bank 5.360 06/26 2,962,590
2,750,000 Student Loan Marketing
Association 5.050 07/01 2,756,713
500,000 Federal Home Loan Bank 5.360 07/08 499,448
2,000,000 Federal Home Loan Mortgage Corp. 5.750 09/27 1,985,889
2,000,000 Federal Home Loan Bank 5.430 10/25 2,018,113
3,000,000 Federal Home Loan Mortgage Corp. 5.130 12/09 2,989,596
2,000,000 Tennessee Valley Authority 5.370 12/15 1,989,504
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45,064,733
CORPORATE AND BANK NOTES (14.6%)
BANKING (11.9%)
2,000,000 Bank One, Milwaukee N.A.,
Milwaukee, Wisc. (a) 5.370 04/01 1,999,485
2,000,000 Society National Bank, Cleveland,
OH (a) 5.260 04/01 1,998,815
500,000 Society National Bank, Cleveland,
OH 5.850 04/25 500,046
2,500,000 LaSalle National Bank 5.360 05/02 2,500,000
6,000,000 Morgan (J.P.) & Co. Inc. 5.501 05/13 6,004,156
6,000,000 NationsBank, NA 5.125 05/21 6,000,000
2,000,000 LaSalle National Bank 5.170 05/30 2,000,000
3,000,000 LaSalle National Bank 5.370 05/31 3,000,000
1,000,000 Wachovia Bank of North Carolina,
N.A. Winston-Salem, NC 5.400 08/05 1,002,684
1,000,000 Wachovia Bank of North Carolina,
N.A. Winston-Salem, NC 5.400 09/06 1,003,974
1,000,000 Bank One, Indianapolis NA,
Indianapolis, Ind. 5.250 12/30 1,018,295
----------
27,027,455
MISCELLANEOUS (2.7%)
3,000,000 Wal-Mart Stores Inc. 5.430 05/01 3,005,915
2,000,000 General Electric Capital Corp. 5.120 07/30 2,016,096
1,000,000 General Electric Capital Corp. 5.177 02/14/97 997,907
----------
6,019,918
----------
TOTAL CORPORATE AND BANK NOTES 33,047,373
BANKERS ACCEPTANCES (7.7%)
2,950,000 Republic National Bank of
New York 5.370 04/08 2,946,966
5,000,000 NationsBank of Texas NA, Dallas 5.342 04/25 4,982,500
3,000,000 Trust Co. Bank, Atlanta, GA 5.136 05/06 2,985,300
6,572,314 Republic National Bank of
New York 5.166 07/29 6,463,471
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17,378,237
CERTIFICATE OF DEPOSIT (0.9%)
2,000,000 Harris Trust & Savings Bank,
Chicago, IL 5.160 04/30 2,000,000
66,983 State Street Bank & Trust 4.500 02/28/97 66,983
----------
2,066,983
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TOTAL INVESTMENTS (99.7%) 225,528,781
CASH AND OTHER ASSETS, LESS LIABILITIES (0.3%) 744,299
----------
NET ASSETS (100.0%) 226,273,080
==========
<FN>
NOTES TO PORTFOLIO OF INVESTMENTS:
(a) Short term floating rate security. Rate shown is the effective interest
rate at March 31, 1996. The date shown represents the next interest rate
change date.
(b) Interest rates represent annualized yield to date of maturity.
(c) For each security, cost (for financial reporting and federal income tax
purposes) and carrying value are the same.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
ORGANIZATION:
Wayne Hummer Money Fund Trust (the "Trust") is organized as an unincorporated
business trust under the laws of Massachusetts. It commenced investment
operations on April 2, 1982. The Trust may issue an unlimited number of full
and fractional units of beneficial interest ("Shares") without par value in
one or more series ("Portfolios"). At March 31, 1996, Shares of only one
series were outstanding.
1. SIGNIFICANT ACCOUNTING POLICIES SECURITY VALUATION
Investments are stated at value. The Trust utilizes the amortized cost method
to determine value. In the event that a deviation of 1/2 of 1% or more exists
between a Portfolios's $1.00 per Share net asset value and the net asset value
as calculated by valuing the Portfolio securities based upon market
quotations, if available, or otherwise based upon a matrix system approved by
the Board of Trustees, or if there is any other deviation which the Trust
believes would result in a material dilution to Shareholders or purchasers,
the Board of Trustees of the Trust promptly will consider what action should
be taken.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on the trade date. Investment income
is recorded on the accrual basis and includes amortization of premium and
discount on investments.
2. TRUST SHARE VALUATION AND DIVIDENDS TO SHAREHOLDERS
Trust Shares are sold and redeemed on a continuous basis at net asset value.
Net asset value per Share is determined on each day the New York Stock
Exchange is open for trading as of the close of trading on the Exchange and at
3:00 p.m. Chicago time on each other day during which there is a sufficient
degree of trading in securities of the Trust's Portfolio so as to affect
materially the net asset value of the Shares by dividing the value of net
assets (total assets less liabilities) by the total number of Shares
outstanding. Dividends are declared daily and distributed monthly in the form
of additional Shares at net asset value unless the Shareholder elects to have
dividends paid in cash, in which case they are credited monthly to the
Shareholder's brokerage account with Wayne Hummer Investments LLC.
3. FEDERAL INCOME TAXES
It is the Trust's policy to comply with the special provisions of the Internal
Revenue Code available to investment companies and, in the manner provided
therein, to distribute all of its taxable income, as well as any net realized
gain on sales of investments. Such provisions were complied with and therefore
no federal income tax provision is required.
4. TRANSACTIONS WITH AFFILIATES
The Trust has an Investment Advisory and Management Agreement and a Portfolio
Accounting Services Agreement with Wayne Hummer Management Company
("Investment Adviser"), and a Distribution Agreement and a Shareholder Service
Agreement with Wayne Hummer Investments LLC, formerly Wayne Hummer & Co.
("Distributor and Shareholder Service Agent"). (Wayne Hummer & Co., an
Illinois limited partner was reorganized as a Delaware limited liability
company effective April 1, 1996.) The shareholders of the Investment Adviser
are the Voting Members of the Distributor and Shareholder Service Agent. For
advisory and management services and facilities furnished, the Trust pays fees
on a declining annual basis ranging from .50 of 1% on the first $500 million
of average daily net assets to .275 of 1% of average daily net assets in
excess of $2.5 billion. The Investment Adviser is obligated to reimburse the
Trust to the extent that the Trust's ordinary operating expenses, including
the fee of the Investment Adviser, exceed 1% of average daily net assets on an
annual basis. During the year ended March 31, 1996, the Trust incurred
management fees of $976,895.
For portfolio accounting services, the Trust pays the Investment Adviser a
fee based on the level of average daily net assets plus out-of-pocket
expenses. The Trust reimburses the Shareholder Service Agent for the
approximate cost of processing Trust Share transactions and maintaining
Shareholder accounts.
Certain trustees of the Trust are also officers or directors of the
Investment Adviser or Voting Members of the Distributor and Shareholder
Service Agent. During the year ended March 31, 1996, the Trust made no direct
payments to its officers and incurred trustee fees for its unaffiliated
trustees of $23,500.
During the year ended March 31, 1995, the Trust sold two securities
at amortized cost to Wayne Hummer & Co. in an affiliated party transaction
sanctioned by the Securities and Exchange Commission. The excess of the
amortized cost over the market value on the date of the transaction is shown
as a realized loss and corresponding capital contribution to the Trust.
<PAGE>
BOARD OF TRUSTEES
Philip M. Burno
Chairman
Steven R. Becker
Charles V. Doherty
Joel D. Gingiss
Patrick B. Long
Eustace K. Shaw
This brochure must be preceded or accompanied by a current prospectus of the
Wayne Hummer Money Fund Trust.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Wayne Hummer Money Fund Trust
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Wayne Hummer Money Fund Trust as of
March 31, 1996, and the related statements of operations for the year then
ended and changes in net assets for each of the two years in the period then
ended, and financial highlights for each of the fiscal years since 1992. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. We
conducted our audits in accordance with the generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of March 31, 1996, by correspondence with the custodian. 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 audits provide a reasonable basis
for our opinion. In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material respects, the
financial position of Wayne Hummer Money Fund Trust as of March 31, 1996, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the periods then ended, and financial
highlights for each of the fiscal years since 1992, in conformity with
generally accepted accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
April 30, 1996
WAYNE HUMMER INVESTMENTS LLC
300 South Wacker
Chicago, Illinois
60606-6607
1.800.621.4477 (toll-free)
(312) 431.1700 (local)
200 E. Washington Street
Appleton, Wisconsin
54911-5468
1.800.678.0833 (toll-free)
(414) 734.1474 (local)
<PAGE>
WAYNE HUMMER MONEY FUND TRUST
300 South Wacker Drive
Chicago, Illinois
60606-6607
First Class
U.S. Postage
PAID
Berwyn, IL
Permit No. 150
WAYNE HUMMER MONEY FUND TRUST
Annual Financial Statements
March 31, 1996
