WAYNE HUMMER MONEY FUND TRUST
PHOTO OF: DAVID P. POITRAS
Semi-Annual
Financial Statements
September 30, 1998
(Unaudited)
Dear Fellow Shareholder:
We are pleased to present the semi-annual financial statements of the Wayne
Hummer Money Fund Trust (the "Fund") for the period ended September 30, 1998.
Net assets under management at the end of the year totaled $307,248,351, an
increase of 3% in six months. 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
September 30, 1998, was 4.86%; if dividends were reinvested the effective yield
was 4.96%. Since these figures represent historical data, future yields may be
higher or lower.
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. The Fund invests in high-quality, short-term securities;
takes no currency risks; does not enter into speculative derivative transactions
and uses only money market indexed floating or variable rate securities. We also
pay close attention to the maturity structure, credit quality, diversification,
and market price exposure of the Fund's portfolio.
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 your social security checks
sent directly to the Fund, or you can have money deducted directly from your
checking account, savings or payroll check. Your Wayne Hummer Investment
Executive will be happy to assist you 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,
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>
FUND OVERVIEW
Established in 1982, the primary objective of the Wayne Hummer Money Fund Trust
(the "Fund") is to maximize current income while preserving capital and
maintaining liquidity. The Fund is an excellent vehicle for short-term cash
management and for investors who need stability of principal. The Fund seeks to
maintain a stable $1.00 net asset value per share at all times, although there
is no guarantee that we will be able to do so.
The Fund's prospectus contains detailed information about permissible
investments.
SERVICES AVAILABLE TO SHAREHOLDERS
SOCIAL SECURITY DIRECT DEPOSIT PLAN
Instead of receiving a monthly check or sending it to your bank, you may use the
Wayne Hummer Money Fund Trust to directly deposit your social security benefits.
You can easily access the money you need, while the rest continues to earn
dividends. Contact your Wayne Hummer Investment Executive for complete details.
PAYROLL DIRECT DEPOSIT PLAN
You may authorize your employer to deduct a specified amount from your payroll
check to purchase additional shares of the Fund. Complete details are available
from the Fund or your Wayne Hummer Investment Executive.
SYSTEMATIC INVESTMENT PLAN
What better way to start early and save regularly than with a Systematic
Investment Plan. You may have subsequent purchases invested automatically each
month. Your bank can send money from your bank account to the Fund. Request an
application with full details from your Investment Executive or call the Fund
directly.
IRA OR RETIREMENT PLANS
Shares of the Wayne Hummer Money Fund Trust are a suitable addition to your IRA
or pension plan. Contact your Wayne Hummer Investment Executive for complete
details on the expanded options available for retirement planning, including the
Roth IRA.
CHECKWRITING PRIVILEGES
After completing a request for checkwriting privileges, you may write checks in
any amount from $500 to $250,000. Your full investment in the Trust will
continue to earn dividends until your check is presented to our bank for
collection. A checkwriting authorization card will be sent to you upon request.
INTERNET ADDRESS: WWW. WHUMMER.COM
Those who enjoy using the computer to access information will find the
prospectus and current rates for the Fund, along with information on the other
Wayne Hummer Funds, on our website. Other services available through Wayne
Hummer Investments LLC are also on-line.
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
<S> <C> <C>
September 30,
1998 March 31,
(Unaudited) 1998
----------- ----------
Assets
- --------------------------------------------------------------------------------
Investments, at amortized cost $307,265,714 $297,654,812
Cash.................... 438,286 190,810
Interest receivable..... 1,142,098 1,559,498
Prepaid expenses........ 34,210 25,739
Insurance deposit....... 18,775 18,775
--------- ---------
Total assets........ 308,899,083 299,449,634
Liabilities and Net Assets
- --------------------------------------------------------------------------------
Investment purchase payable 1,031,136 0
Dividends payable....... 407,483 354,875
Due to Wayne Hummer
Management Company... 124,698 124,642
Accounts payable........ 87,415 61,786
--------- ---------
Total liabilities.. 1,650,732 541,303
--------- ---------
Net assets applicable to
Shares outstanding,
equivalent to $1.00
per Share............ $307,248,351 $298,908,331
============ ============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
Six months ended
September 30, Year ended
1998 March 31,
(Unaudited) 1998
----------- ----------
<S> <C> <C>
Interest income......... $8,360,123 $14,878,924
Expenses:
Management fee........ 744,091 1,311,192
Transfer agent fees... 78,000 153,300
Shareholder service agent fees 74,000 136,200
Custodian fees........ 31,800 57,500
Professional fees..... 28,343 51,300
Registration costs.... 26,717 54,934
Printing costs........ 23,076 37,497
Portfolio accounting fees 12,621 24,602
Insurance costs....... 12,600 23,434
Trustee fees.......... 10,800 19,400
Other................. 7,200 14,364
--------- ---------
Total expenses...... 1,049,248 1,883,723
--------- ---------
Net increase in net assets
resulting from operations....... $7,310,875 $12,995,201
========= ===========
</TABLE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
Six months ended Year ended
September 30, 1998 March 31,
(Unaudited) 1998
<S> <C> <C>
Operations:
Net investment income........................................................ $ 7,310,875 $ 12,995,201
Dividends to Shareholders from net investment income........................... (7,310,875) (12,995,201)
Capital Share transactions (dollar amounts and number of Shares are the same):
Proceeds from Shares sold.................................................... 380,825,049 718,943,118
Shares issued upon reinvestment of dividends ................................ 7,026,343 12,464,847
---------- ----------
387,851,392 731,407,965
Less payments for Shares redeemed............................................ (379,511,372) (670,737,510)
---------- ----------
Increase due to Capital Share transactions................................... 8,340,020 60,670,455
Net assets at beginning of the period.......................................... 298,908,331 238,237,876
---------- ----------
Net assets at end of the period................................................ $307,248,351 $298,908,331
========== ==========
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
(For a Share outstanding throughout each period)
<CAPTION>
Six months ended
September 30, 1998 Year ended March 31,
(Unaudited) 1998 1997 1996 1995
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income.................... 0.02 0.04 0.04 0.05 0.04
Less dividends from investment income .. (0.02) (0.04) (0.04) (0.05) (0.04)
------ ------ ------ ------ ------
Net asset value, end of period............. 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total return............................... 2.49% 5.07% 4.80% 5.18% 4.24%(b)
Ratios and Supplementary Data
Net assets, end of period ($000's)....... 307,248 298,908 238,238 226,273 155,248
Ratio of total expenses to average
net assets 0.71%(a) 0.72% 0.74% 0.79% 0.80%
Ratio of net investment income to average
net assets 4.93%(a) 4.96% 4.70% 5.04% 4.16%
</TABLE>
Notes to Financial Highlights:
<PAGE>
(a) Determined on an annualized basis.
(b) 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%.
<TABLE>
PORTFOLIO OF INVESTMENTS
<CAPTION>
COMMERCIAL PAPER (65.58%) Value
- ------------------------- --------
<S> <C>
BANKING (6.13%)
Bank of New York
5.58%, 10/05/98 $ 2,963,188
J.P. Morgan & Co., Inc.
5.47% - 5.61%, 12/11/98 5,293,015
NationsBank Corp.
5.67%, 02/01/99 4,906,213
Northern Trust Corporation
5.59%, 11/04/98 5,670,499
---------
18,832,915
BROKERAGE (3.96%)
Merrill Lynch & Co., Inc.
5.59% - 5.61%, 10/07/98 - 11/12/98 12,157,579
BUSINESS FINANCE (17.55%)
Ford Motor Credit Co.
5.52% - 5.61%, 10/08/98 - 11/20/98 9,437,792
General Electric Capital Corp.
5.15% - 5.65%, 10/28/98 - 01/27/99 4,791,917
GE Credit Cap. Services of Puerto Rico, Inc.
5.60% - 5.65%, 10/20/98 - 01/07/99 5,675,389
J.C. Penney Funding Corp.
5.59% - 5.60%, 10/09/98 - 11/05/98 14,562,062
National Rural Utilities
Cooperative Finance Corp.
5.59% - 5.60%, 10/15/98 - 10/29/98 8,474,334
TECO Finance Inc.
5.56% - 5.61%, 10/08/98 - 11/05/98 10,966,871
---------
53,908,365
CHEMICALS (5.83%)
DuPont (E.I.) de Nemours & Co.
5.57% - 5.59%, 10/21/98 - 11/10/98 11,175,059
Nalco Chemical Company
5.61%, 11/19/98 6,749,187
---------
17,924,246
ELECTRIC AND GAS UTILITIES (10.02%)
Duke Energy Corporation
5.58% - 5.59%, 10/16/98 - 11/13/98 10,949,290
LG&E Capital Corp.
5.49% - 5.53%, 12/10/98 11,033,314
LaClede Gas Co.
5.53% - 5.57%, 10/09/98 - 11/02/98 8,796,056
---------
30,778,660
INSURANCE (1.98%)
Marsh & McLennan Companies
5.53% - 5.67%, 12/10/98 - 02/22/99 6,098,484
OIL AND GAS (5.95%)
Chevron Transport Corp.
5.58% - 5.63%, 10/02/98 - 11/20/98 $14,308,279
Equitable Resources Inc.
5.38%, 11/06/98 3,978,880
---------
18,287,159
PERSONAL FINANCE (9.31%)
American Express Credit Co.
5.61%, 11/18/98 2,655,419
American General Finance Corp.
5.56% - 5.59%, 10/09/98 - 11/09/98 8,403,335
Associates Financial Services Co. of Puerto Rico
5.59% - 5.60%, 10/05/98 - 10/06/98 6,395,770
Commercial Credit Co.
5.61%, 10/28/98 2,942,788
Commoloco, Inc.
5.66%, 02/12/99 2,228,680
Norwest Financial Inc.
5.60%, 11/05/98 5,967,975
---------
28,593,967
MISCELLANEOUS (4.85%)
Avnet Inc.
5.58% - 5.61%, 10/09/98 - 11/16/98 6,113,704
Snap-On Inc.
5.60%, 10/06/98 - 10/22/98 8,783,487
---------
14,897,191
---------
TOTAL COMMERCIAL PAPER 201,478,566
---------
BANKERS ACCEPTANCE (7.15%)
- ---------------------------
Key Bank U.S.A., N.A.
5.29% - 5.58%, 10/27/98 - 03/09/99 7,912,969
Sun Trust Bank, Atlanta, GA
5.57% - 5.58%, 10/16/98 - 10/26/98 14,062,478
---------
TOTAL BANKERS ACCEPTANCES 21,975,447
---------
U.S. GOVERNMENT AGENCY NOTES (8.50%)
- ------------------------------------
MORTGAGE-BACKED SECURITIES (2.32%)
Federal Home Loan Mortgage Corporation
5.589% - 5.913%, 10/01/98 - 07/01/99 6,119,321
Federal National Mortgage Association
5.787% - 5.92%, 01/01/99 - 08/01/99 1,014,562
---------
7,133,883
---------
<PAGE>
Value
---------
OTHER (6.18%)
Federal Home Loan Banks
5.625% - 5.75%, 01/14/99 - 08/27/99 $ 2,998,312
Federal Home Loan Banks (a)
5.01%, 10/01/98 - 10/07/98 1,999,989
Federal Home Loan Mortgage Corp.
5.48%, 10/14/98 500,203
Federal National Mortgage Association
5.49% - 5.787%, 10/13/98 - 12/10/98 12,905,448
Student Loan Marketing Association (a)
5.29%, 10/06/98 500,000
Other
5.06%, 02/04/1999 62,902
---------
18,966,854
---------
TOTAL U.S. GOVERNMENT AGENCY NOTES 26,100,737
---------
CORPORATE AND BANK NOTES (18.78%)
- ---------------------------------
BANKING (11.72%)
Bank One, Milwaukee, WI
5.65%, 2/26/1999 999,612
First National Bank of Chicago
5.58%, 01/20/99 5,000,000
First USA Bank, Wilmington
5.548%, 01/15/99 500,203
Harris Trust & Savings Bank, Chicago, IL
5.42% - 5.55%, 10/23/98 - 12/04/98 14,999,959
LaSalle National Bank, Chicago, IL
5.40% -5.56%, 11/06/98 - 01/19/99 11,450,000
J.P. Morgan & Co., Inc.
5.546% - 5.824%, 11/15/98 3,072,711
---------
36,022,485
MISCELLANEOUS (7.06%)
Associates Corp. of North America
5.324% - 5.84%, 11/15/98 - 09/17/99 $ 6,067,974
AT & T Corporation
5.74% - 5.99%, 02/01/99 - 05/01/99 3,263,076
Consolidated Natural Gas Company
5.68% - 5.80%, 10/01/98 - 06/01/99 3,509,400
DuPont (E.I.) de Nemours & Co.
5.79%, 06/11/99 1,111,808
General Electric Capital Corp.
5.758%, 03/10/99 1,166,061
Merck & Co., Inc.
5.684%, 12/22/98 1,009,009
Merrill Lynch & Co., Inc.
5.756%, 01/15/99 1,303,252
Norwest Corp.
5.737%, 11/16/98 2,999,994
Pitney Bowes Credit Corp.
5.70%, 07/15/99 1,257,905
----------
21,688,479
----------
TOTAL CORPORATE AND BANK NOTES 57,710,964
----------
TOTAL INVESTMENTS (100.01%) 307,265,714
CASH AND OTHER ASSETS, LESS
LIABILITIES (-0.01%) (17,363)
----------
NET ASSETS (100.0%) $307,248,351
==========
</TABLE>
Notes to Portfolio of Investments:
(a) Short-term floating rate security. The rates shown are the current rates at
September 30, 1998. The dates shown represent 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. Likewise, carrying value approximates
principal amounts.
<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 September 30, 1998, 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.
Use of Estimates The preparation of financial statements in
conformity with generally accepted accounting principles may require
management to make estimates and assumptions that affect the amounts reported
in the financial statements and accompanying notes. In those cases, actual
results may differ from estimates.
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 period ended September 30, 1998, and the year ended
March 31, 1998, the Fund incurred management fees of $744,091 and $1,311,192,
respectively.
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 period ended September 30, 1998 and the year ended March 31, 1998,
the Fund made no direct payments to its officers and incurred trustee fees
for its unaffiliated trustees of $10,800 and $19,400, respectively.
<PAGE>
BOARD OF TRUSTEES
Philip M. Burno
Chairman
Steven R. Becker
Charles V. Doherty
Joel D. Gingiss
Patrick B. Long
Eustace K. Shaw
GRAPHIC: MEMBER OF 100% NO-LOAD (TM) MUTUAL FUND COUNCIL
LOGO: WH Wayne Hummer Investments, LLC
This brochure must be preseded or accompanied by a current prospectus of the
Wayne Hummer Money Fund.
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)
www.whummer.com
<PAGE>
WAYNE HUMMER MONEY FUND TRUST
Semi-Annual Financial Statements
September 30, 1998
(Unaudited)
WAYNE HUMMER
MONEY FUND TRUST
300 South Wacker Drive
Chicago, IL 60606-6607
