WAYNE
HUMMER
MONEY
FUND
TRUST
Annual
Financial Statements
Audited
March 31, 1997
<PAGE>
WAYNE
HUMMER
MONEY
FUND
TRUST
Photo of: David P. Poitras
Dear Fellow Shareholder:
We are pleased to present the annual financial statements of the Wayne Hummer
Money Fund Trust (the "Fund") for the year ended March 31, 1997. Net assets
under management at the end of the year totaled $238,237,876, an increase of
5.3% for the year. Since its inception, the Fund 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 Fund's portfolio for the period ended March
31, 1997, was 4.70%; if dividends were reinvested the effective yield was 4.80%.
Since these figures represent historical data, future yields may be higher or
lower. Due to the highly liquid nature of the portfolio, the Fund has been able
to take advantage of the Federal Reserve's increase in short-term interest rates
which occurred on March 25, 1997. We expect interest rates to rise slightly,
then remain stable for the rest of the year.
Since the Fund's objective is preservation of capital and maintenance of
liquidity, we do not purchase investments that we perceive to be risky or
potentially volatile. We also pay close attention to the maturity structure,
credit quality, diversification, and market price exposure of the Fund's
portfolio. You can be assured the Fund adheres to the same strict criteria which
rating agencies use to assign the highest rating to money market funds.
As you know, the Fund provides a vehicle for earning a yield on investments
which reflects changes in current rates. Additionally, the Fund offers
convenient services such as automatic monthly purchases and check writing
privileges. You can make investing easy by having money deducted directly from
your checking, savings or payroll check. Your Wayne Hummer Investment Executive
will personally handle your transactions and answer any questions.
We appreciate your continued support of the Fund and ask that you call or write
us if you have any questions about the Fund or your account.
Sincerely,
/s/ David P. Poitras
David P. Poitras
President
Wayne Hummer Money Fund Trust
An investment in the Fund 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 Fund will
be able to maintain a stable net asset value of $1.00 per share.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1997
--------------
<S> <C>
Assets
Investments, at amortized cost ............................. $238,180,881
Cash ....................................................... 32,669
Interest receivable ........................................ 374,987
Prepaid expenses ........................................... 34,326
Insurance deposit .......................................... 18,775
------------
Total assets ................................. 238,641,638
Liabilities and Net Assets
Dividends payable .......................................... 244,339
Due to Wayne Hummer Management Company ..................... 101,605
Accounts payable ........................................... 57,818
------------
Total liabilities ............................ 403,762
------------
Net assets applicable to Shares
outstanding, equivalent to $1.00 per Share ............... $238,237,876
============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Year ended
March 31, 1997
--------------
<S> <C>
Interest income ........................................... $11,926,831
Expenses:
Management fee .......................................... 1,097,662
Transfer agent fees ..................................... 144,100
Shareholder service agent fees .......................... 127,739
Registration costs ...................................... 50,232
Custodian fees .......................................... 48,700
Professional fees ....................................... 39,000
Printing costs .......................................... 37,183
Trustee fees ............................................ 24,519
Portfolio accounting fees ............................... 21,852
Insurance costs ......................................... 14,920
Other ................................................... 11,682
-----------
Total expenses .............................. 1,617,589
-----------
Net increase in net assets resulting
from operations ......................................... $10,309,242
===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
Year ended March 31,
1997 1996
------ ------
<S> <C> <C>
Operations:
Net investment income ...................................................... $ 10,309,242 $ 9,838,725
Dividends to Shareholders from net investment income ......................... (10,309,242) (9,838,725)
Capital Share transactions (dollar amounts and number of Shares are the same):
Proceeds from Shares sold .................................................. 552,545,079 521,966,037
Shares issued upon reinvestment of dividends ............................... 9,906,164 9,405,599
------------- -------------
562,451,243 531,371,636
Less payments for Shares redeemed .......................................... (550,486,447) (460,346,433)
------------- -------------
Increase due to Capital Share transactions ................................. 11,964,796 71,025,203
Net assets at beginning of the year .......................................... 226,273,080 155,247,877
------------- -------------
Net assets at end of the year ................................................ $ 238,237,876 $ 226,273,080
============= =============
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(For a Share outstanding throughout each year)
Year ended March 31,
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<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.................. 0.04 0.05 0.04 0.02 0.03
Less dividends from net investment income (0.04) (0.05) (0.04) (0.02) (0.03)
------ ------ ------ ------ ------
Net asset value, end of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return............................. 4.80% 5.18% 4.24%(a) 2.47% 2.83%
Ratios and Supplementary Data
Net assets, end of year ($000's)....... 238,238 226,273 155,248 153,529 158,170
Ratio of total expenses to average net assets .74% .79% .80% .80% .79%
Ratio of net investment income to average net assets 4.70% 5.04% 4.16% 2.44% 2.80%
<FN>
(a) The total return includes the effect of the capital contribution of $0.0011
per Share from Wayne Hummer Investments LLC. The return without the capital
contribution would have been 4.12%.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
March 31, 1997
PRINCIPAL RATE MATURITY DATE
AMOUNT COMMERCIAL PAPER (74.25%) % (1997) VALUE
-------- ----------------- --------- --------- --------
BANKING (5.41%)
<S> <C> <C> <C> <C>
$ 5,300,000 First Chicago Financial Corp....................... 5.511 04/07 $ 5,295,204
1,300,000 The Northern Trust Corp............................ 5.371 04/10 1,298,281
3,200,000 First Chicago Financial Corp....................... 5.367 04/17 3,192,491
2,490,000 SunTrust Banks, Inc................................ 5.412 04/23 2,481,905
630,000 First Chicago Financial Corp....................... 5.490 05/13 626,046
----------
12,893,927
BROKERAGE (3.89%)
2,600,000 Merrill Lynch & Co., Inc........................... 5.364 04/01 2,600,000
1,455,000 Merrill Lynch & Co., Inc........................... 5.454 05/19 1,444,640
3,300,000 Merrill Lynch & Co., Inc........................... 5.502 05/27 3,272,383
2,000,000 Merrill Lynch & Co., Inc........................... 5.659 10/09 1,942,488
----------
9,259,511
BUSINESS FINANCE (20.79%)
6,500,000 Ford Motor Credit Co............................... 5.400 04/08 6,493,276
1,500,000 General Electric Capital Corp...................... 5.446 04/14 1,497,097
1,420,000 Ameritech Capital Funding Corp..................... 5.375 04/14 1,417,287
1,000,000 General Electric Capital Corp...................... 5.396 04/16 997,788
5,500,000 J.C. Penney Funding Corp. ......................... 5.349 04/21 5,483,928
5,000,000 GE Credit Cap. Services of Puerto Rico, Inc........ 5.444 04/24 4,982,910
590,000 Ford Motor Credit Co............................... 5.419 05/01 587,384
2,850,000 Ford Motor Credit Co............................... 5.420 05/02 2,836,944
2,000,000 J.C. Penney Funding Corp. ......................... 5.432 05/05 1,989,932
2,275,000 National Rural Utilities Cooperative Finance Corp.. 5.577 05/07 2,262,556
5,000,000 Pitney Bowes Credit Corp........................... 5.424 05/08 4,972,661
1,000,000 GE Credit Cap. Services of Puerto Rico, Inc........ 5.372 05/19 992,987
4,000,000 National Rural Utilities Cooperative Finance Corp.. 5.434 05/20 3,971,035
3,000,000 Pitney Bowes Credit Corp........................... 5.653 05/23 2,976,037
1,920,000 General Electric Capital Corp...................... 5.422 05/30 1,903,323
1,900,000 J.C. Penney Funding Corp. ......................... 5.476 06/02 1,882,494
830,000 Pitney Bowes Credit Corp........................... 5.534 06/10 821,285
2,500,000 J.C. Penney Funding Corp. ......................... 5.495 06/25 2,468,420
1,000,000 Pitney Bowes Credit Corp........................... 5.505 07/08 985,436
----------
49,522,780
OIL AND GAS (6.75%)
5,000,000 Equitable Resources Inc............................ 5.410 04/07 4,995,558
3,700,000 Chevron Transport Corp............................. 5.398 05/13 3,677,165
4,500,000 Chevron Transport Corp............................. 5.516 06/13 4,450,907
3,000,000 Chevron Transport Corp............................. 5.501 07/03 2,958,538
----------
16,082,168
PERSONAL FINANCE (13.45%)
2,705,000 Commerical Credit Co............................... 5.315 04/03 2,704,212
5,765,000 Associates Corp. of North America.................. 5.382 04/11 5,756,513
5,334,000 Beneficial Corp.................................... 5.445 04/25 5,314,975
2,635,000 Norwest Financial Inc.............................. 5.418 04/30 2,623,708
4,431,000 Beneficial Corp.................................... 5.661 05/09 4,405,042
500,000 Norwest Financial Inc.............................. 5.462 05/16 496,656
1,645,000 Commerical Credit Co............................... 5.462 05/16 1,633,999
5,823,000 Associates Corp. of North America.................. 5.441 05/28 5,773,951
2,990,000 Norwest Financial Inc.............................. 5.459 06/20 2,954,652
390,000 Norwest Financial Inc.............................. 5.459 06/20 385,389
----------
32,049,097
PHARMACEUTICALS (7.02%)
8,900,000 Schering-Plough Corp............................... 5.376 04/29 8,863,450
8,000,000 Eli Lilly & Co..................................... 5.503 07/30 7,857,867
----------
16,721,317
<PAGE>
<CAPTION>
PRINCIPAL RATE MATURITY DATE
AMOUNT TELECOMMUNICATIONS (5.59%) % (1997) VALUE
-------- --------- --------- --------
<S> <C> <C> <C> <C>
$ 4,100,000 Southwestern Bell Telephone Co..................... 5.351 04/10 $ 4,094,598
5,004,000 Bellsouth Telecommunications Inc................... 5.337 04/18 4,991,594
4,300,000 AT&T Corp.......................................... 5.398 07/17 4,233,030
----------
13,319,222
MISCELLANEOUS (11.35%)
10,000,000 AON Corp........................................... 5.375 04/01 9,998,524
2,860,000 Madison Gas & Electric Co.......................... 5.628 04/25 2,849,456
823,000 WMX Technologies Inc............................... 5.433 05/06 818,735
5,175,000 WMX Technologies Inc............................... 5.433 05/06 5,148,183
1,000,000 WMX Technologies Inc............................... 5.644 05/13 993,548
2,945,000 WMX Technologies Inc............................... 5.444 05/20 2,923,635
4,395,000 DuPont (E.I.) de Nemours & Co...................... 5.456 08/06 4,313,136
----------
27,045,217
----------
TOTAL COMMERCIAL PAPER............................. 176,893,239
----------
BANKERS ACCEPTANCES (12.76%)
-------------------
5,000,000 NationsBank, N.A. (South), Atlanta, GA............. 5.356 04/03 4,998,533
2,600,000 LaSalle National Bank, Chicago, IL................. 5.341 04/09 2,596,887
1,700,000 Northern Trust Co., Chicago. IL ................... 5.382 04/09 1,697,998
3,800,000 The Northern Trust Co., Chicago, IL................ 5.668 04/23 3,787,065
1,580,573 SunTrust Bank, Atlanta, Atlanta, GA............... 5.343 04/25 1,575,041
2,000,000 NationsBank of Texas N.A., Dallas, Texas........... 5.407 04/28 1,992,035
1,000,000 Republic National Bank of New York................. 5.451 05/27 991,708
5,000,000 SunTrust Bank-Atlanta, Atlanta, GA................. 5.566 06/10 4,947,208
1,000,000 NationsBank, N.A. (South), Atlanta, GA............. 5.511 07/14 984,545
2,520,000 Northern Trust Co., Chicago. IL ................... 5.518 07/22 2,478,056
1,400,000 Republic National Bank of New York................. 5.463 08/01 1,374,902
3,027,000 NationsBank, N.A. (South), Atlanta, GA............. 5.440 08/11 2,968,619
----------
TOTAL BANKERS ACCEPTANCES.......................... 30,392,597
----------
US GOVERNMENT AGENCY NOTES (5.87%)
--------------------------
2,000,000 Federal National Mortgage Assoc. (a)............... 5.650 04/08 1,999,848
2,000,000 Federal Home Loan Banks (a)........................ 5.600 04/08 1,999,465
310,000 Federal Home Loan Mortgage Corp.................... 5.372 05/19 307,826
875,000 Federal Home Loan Banks............................ 5.575 06/16 875,526
1,000,000 Federal Home Loan Banks............................ 5.636 06/23 1,000,197
3,270,000 Federal Farm Credit Banks.......................... 5.431 07/01 3,273,961
2,500,000 Federal Home Loan Bank............................. 5.392 07/10 2,463,611
2,000,000 Federal Home Loan Banks............................ 5.780 01/28/98 2,000,000
64,000 United States Treasury Bill ....................... 5.654 02/05/98 61,068
----------
TOTAL GOVERNMENT AGENCIES.......................... 13,981,502
----------
CORPORATE AND BANK NOTES (5.00%)
-------------------------
BANKING (3.06%)
1,000,000 Key Bank of Washington, Tacoma, Wash. (a).......... 5.338 04/10 999,654
1,000,000 Harris Trust & Savings Bank, Chicago, IL........... 6.100 06/17 999,879
1,400,000 LaSalle National Bank, Chicago, IL ................ 5.500 07/01 1,400,000
1,600,000 LaSalle National Bank, Chicago, IL ................ 5.520 07/07 1,600,000
1,300,000 LaSalle National Bank, Chicago, IL ................ 5.530 07/14 1,300,000
1,000,000 LaSalle National Bank, Chicago, IL ................ 6.000 03/19/98 1,000,000
----------
7,299,533
MISCELLANEOUS (1.94%)
1,600,000 SAFECO Corporation................................. 6.000 05/01 1,603,436
1,000,000 General Electric Capital Corp...................... 5.596 07/01 1,008,098
2,000,000 Kellogg Co......................................... 5.445 07/15 2,002,476
----------
4,614,010
----------
TOTAL CORPORATE AND BANK NOTES..................... 11,913,543
----------
See accompanying notes to financial statements.
<PAGE>
<CAPTION>
PRINCIPAL RATE MATURITY DATE
AMOUNT CERTIFICATE OF DEPOSIT (2.10%) % (1997) VALUE
-------- -------------------- --------- --------- --------
<S> <C> <C> <C> <C>
5,000,000 Regions Bank of Alabama............................ 5.420 04/15 5,000,000
----------
TOTAL INVESTMENTS (99.98%)......................... 238,180,881
CASH AND OTHER ASSETS, LESS LIABILITIES (0.02%).... 56,995
----------
NET ASSETS (100.0%)................................ $238,237,876
==========
<FN>
NOTES TO PORTFOLIO OF INVESTMENTS:
(a) Short-term floating rate security. Rate shown is the effective interest rate
at March 31, 1997. 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.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
ORGANIZATION:
Wayne Hummer Money Fund Trust (the "Fund") is an open-end management
investment company organized as a Massachusetts business trust. It commenced
investment operations on April 2, 1982. The Fund 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, 1997, Shares of
only one series were outstanding. The investment objective of the Fund is to
maximize current income to the extent consistent with preservation of capital
and maintenance of liquidity.
1. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
Investments are stated at value. The Fund utilizes the amortized cost method
to determine value. In the event that a deviation of 1/2 of 1% or more exists
between a Portfolio'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 Fund
believes would result in a material dilution to Shareholders or purchasers,
the Board of Trustees of the Fund 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. FUND SHARE VALUATION AND DIVIDENDS TO SHAREHOLDERS
Fund 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 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 Fund'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 Fund 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 ("Distributor and
Shareholder Service Agent"). 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 Fund 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
Fund to the extent that the Fund'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, 1997, the Fund incurred
management fees of $1,097,662.
For portfolio accounting services, the Fund pays the Investment Adviser
a fee based on the level of average daily net assets plus out-of-pocket
expenses. The Fund reimburses the Shareholder Service Agent for the
approximate cost of processing Fund Share transactions and maintaining
Shareholder accounts.
Certain trustees of the Fund 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, 1997, the Fund made no direct payments to
its officers and incurred trustee fees for its unaffiliated trustees
of $24,519.
<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,
1997, 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 1993. These financial
statements and financial highlights are the responsibility of the Fund'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, 1997, 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, 1997, 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 1993, in conformity with generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
May 2, 1997
==============================================================================
BOARD OF TRUSTEES
Philip M. Burno
Chairman
Steven R. Becker
Charles V. Doherty
Joel D. Gingiss Member of 100% NO-LOAD(TM)
Patrick B. Long MUTUAL FUND COUNCIL
Eustace K. Shaw
==============================================================================
WAYNE HUMMER
INVESTMENT LLC
This brochure must be preceded or accompanied by a current prospectus of the
Wayne Hummer Money Fund Trust.
300 South Wacker 200 E. Washington Street
Chicago, Illinois Appleton, Wisconsin
60606-6607 54911-5468
1.800.621.4477 (toll-free) 1.800.678.0833 (toll-free)
(312) 431.1700 (local) (414) 734.1474 (local)
<PAGE>
WAYNE
HUMMER
MONEY
FUND
TRUST
Annual
Financial
Statements
March 31, 1997
WAYNE HUMMER
MONEY FUND TRUST
300 South Wacker Drive
Chicago, IL 60606-6607
