Wayne
Hummer
Money
Fund
Trust
Photo of: David P. Poitras
Annual
Financial Statements
Audited
March 31, 1999
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, 1999. Net assets
under management at the end of the year totaled $350,973,457, an increase of 17%
from one year ago. 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, 1999, was 4.22%; if dividends were reinvested the effective yield was 4.30%.
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 and does not enter into speculative derivative
transactions. 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,
/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>
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.
See the prospectus for more information about the Fund's investment strategy and
risks.
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 information
about the Wayne Hummer Family of Funds and the prospectus on our website. Other
services available through Wayne Hummer Investments LLC are also on-line.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1999
--------------
Assets
Investments, at amortized cost ............................. $349,914,520
Cash ....................................................... 149,991
Interest receivable ....................................... 1,469,649
Prepaid expenses ........................................... 52,373
Insurance deposit .......................................... 18,775
------------
Total assets ..................................... 351,605,308
Liabilities and Net Assets
Dividends payable .......................................... 404,139
Due to Wayne Hummer Management Company ..................... 150,110
Accounts payable ........................................... 77,602
------------
Total liabilities ................................ 631,851
------------
Net assets applicable to Shares
outstanding, equivalent to $1.00 per Share ............... $350,973,457
============
STATEMENT OF OPERATIONS
Year ended
March 31, 1999
--------------
Interest income ........................................... $17,146,469
Expenses:
Management fee .......................................... 1,587,540
Transfer agent fees ..................................... 170,534
Shareholder service agent fees .......................... 144,044
Professional fees ....................................... 69,598
Registration costs ...................................... 68,061
Custodian fees .......................................... 60,700
Printing costs .......................................... 51,978
Portfolio accounting fees ............................... 25,202
Trustee fees ............................................ 24,800
Insurance costs ......................................... 21,900
Other ................................................... 13,200
-----------
Total expenses .................................. 2,237,557
-----------
Net increase in net assets resulting
from operations ........................................... $14,908,912
===========
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
Year ended March 31,
1999 1998
------------- -------------
<S> <C> <C>
Operations:
Net investment income .................................................................. $ 14,908,912 $ 12,995,201
Dividends to Shareholders from net investment income ..................................... (14,908,912) (12,995,201)
Capital Share transactions (dollar amounts and number of Shares are the same):
Proceeds from Shares sold .............................................................. 823,747,509 718,943,118
Shares issued upon reinvestment of dividends ........................................... 14,412,717 12,464,847
------------- -------------
838,160,226 731,407,965
Less payments for Shares redeemed ...................................................... (786,095,100) (670,737,510)
------------- -------------
Increase due to Capital Share transactions ............................................. 52,065,126 60,670,455
Net assets at beginning of the year ...................................................... 298,908,331 238,237,876
------------- -------------
Net assets at end of the year ............................................................ $ 350,973,457 $ 298,908,331
============= =============
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
(For a Share outstanding throughout each year)
<CAPTION>
Year ended March 31,
1999 1998 1997 1996 1995
---------------------------------------------------------------------------
<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 0.04 0.04 0.05 0.04
Less dividends from net investment income ..... (0.04) (0.04) (0.04) (0.05)
(0.04)
----------- ----------- ----------- ----------- -----------
Net asset value, end of year .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total return .................................... 4.82% 5.07% 4.80% 5.18% 4.24%(a)
Ratios and Supplementary Data
Net assets, end of year ($000's) ................ 350,973 298,908 238,238 226,273 155,248
Ratio of total expenses to
average net assets ............................ 0.71% 0.72% 0.74% 0.79% 0.80%
Ratio of net investment income to
average net assets ............................ 4.70% 4.96% 4.70% 5.04% 4.16%
(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%.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
March 31, 1999
COMMERCIAL PAPER (70.13%) Value
---------
Banking (7.61%)
First Chicago Financial Corp.
4.89% - 5.06%, 04/08/99 - 07/06/99 $14,516,963
Northern Trust Corporation
4.89% - 4.93%, 04/13/99 - 05/13/99 12,193,066
----------
26,710,029
Business Finance (9.50%)
Ford Motor Credit Co.
4.88%, 04/06/99 3,773,477
General Electric Capital Corp.
4.92% - 4.99%, 06/04/99 - 08/16/99 6,471,561
GE Credit Cap. Services of Puerto Rico, Inc.
4.96% - 4.99%, 07/19/99 - 07/28/99 8,077,535
General Motors Acceptance Corp.
4.87% - 4.88%, 04/20/99 - 04/23/99 13,888,882
National Rural Utilities
Cooperative Finance Corp.
4.92%, 06/03/99 1,138,337
----------
33,349,792
Chemicals (8.82%)
DuPont (E.I.) de Nemours & Co.
4.86% - 4.87%, 04/12/99 - 05/14/99 14,935,588
Nalco Chemical Company
4.84% - 4.99%, 04/26/99 - 07/08/99 16,026,275
----------
30,961,863
Electric and Gas Utilities (9.66%)
Florida Power Corp.
4.92%, 04/06/99 3,997,306
IPALCO Enterprises, Inc.
4.87% - 4.93%, 04/05/99 - 04/23/99 16,774,596
LG&E Capital Corp.
4.90% - 5.02%, 04/09/99 - 09/23/99 13,147,435
----------
33,919,337
Insurance (3.30%)
Marsh & McLennan Companies
4.85% - 4.92%, 04/08/99 - 04/29/99 11,575,226
Oil and Gas (7.34%)
Chevron Transport Corp.
4.95% - 5.06%, 06/14/99 - 07/23/99 17,270,961
Equitable Resources Inc.
4.92% - 4.93%, 04/20/99 - 04/27/99 8,474,993
----------
25,745,954
<PAGE>
Value
---------
Personal Finance (9.98%)
American General Finance Corp.
4.89%, 04/22/99 $ 5,833,586
Associates Financial Services Co.
of Puerto Rico
4.94% - 4.96%, 05/04/99 - 06/24/99 8,632,711
Commercial Credit Co.
4.90% - 4.95%, 04/14/99 11,180,322
Commoloco, Inc.
5.07%, 08/31/99 979,311
Norwest Financial Inc.
4.95%, 06/18/99 8,411,047
----------
35,036,977
Pharmaceuticals (2.56%)
Schering Corp.
4.82% - 4.89%, 04/01/99 - 04/06/99 8,975,380
Telecommunications (1.71%)
BellSouth Telecommunications, Inc. 5,995,200
4.87%, 04/07/99
Miscellaneous (9.65%)
Avnet Inc.
4.89% - 4.94%, 04/21/99 - 05/13/99 16,945,649
Snap-On Inc.
4.91%, 04/20/99 10,971,959
Walt Disney Company
4.88% - 5.07%, 04/15/99 - 10/06/99 5,941,669
----------
33,859,277
----------
TOTAL COMMERCIAL PAPER 246,129,035
-----------
CORPORATE AND BANK NOTES (11.78%)
- ------------------------
Banking (5.22%)
LaSalle National Bank, Chicago, IL
4.83% - 4.91%, 04/19/99 - 05/11/99 16,800,000
Morgan Guaranty Trust Co. of NY
4.85%, 10/08/99 1,506,795
----------
18,306,795
Personal Finance (3.31%)
Associates Corp. of North America
5.00% - 5.45%, 05/15/99 - 09/17/99 5,507,016
Norwest Financial Inc.
5.05% - 5.09%, 08/01/99 - 11/19/99 6,130,688
----------
11,637,704
<PAGE>
Value
---------
Telecommunications (0.86%)
AT&T Corporation
5.74%, 05/01/99 $ 1,997,819
BellSouth Telecommunications, Inc.
4.96%, 02/01/00 1,012,383
----------
3,010,202
Miscellaneous (2.39%)
Consolidated Natural Gas Company
5.80%, 06/01/99 502,361
Duke Power Co.
4.97% - 5.24%, 04/01/99 - 07/08/99 1,051,178
DuPont (E.I.) de Nemours & Co.
5.79%, 06/11/99 1,103,314
General Electric Capital Corp.
5.00%, 05/05/99 500,918
Merrill Lynch & Co., Inc.
5.12%, 06/25/99 701,854
Pitney Bowes Credit Corp.
5.07% - 5.70%, 07/15/99 2,959,900
Sara Lee Corporation
4.99%, 09/20/99 1,006,866
Wal-Mart Stores, Inc.
5.08%, 10/01/99 562,826
----------
8,389,217
----------
TOTAL CORPORATE AND BANK NOTES 41,343,918
----------
US GOVERNMENT & AGENCIES (11.21%)
- ------------------------
Mortgage-Backed Securities (0.06%)
Federal Home Loan Mortgage Corporation
5.75%, 07/01/99 130,314
Federal National Mortgage Association
5.85%, 08/01/99 73,370
----------
203,684
----------
Other (11.15%)
Federal Home Loan Banks
4.82% - 5.65%, 04/07/99 - 03/08/00 7,634,381
Federal Home Loan Banks (a)
4.968%, 04/01/99 1,000,000
Federal Home Loan Mortgage Corp.
4.86% - 5.09%, 04/21/99 - 07/21/99 15,413,751
Federal National Mortgage Association
4.84% - 4.99%, 05/21/99 - 12/09/99 11,047,257
Federal National Mortgage Association (a)
4.51%, 04/06/99 1,497,866
<PAGE>
Value
---------
Other (11.15%) (continued)
Student Loan Marketing Association (a)
5.08%- 5.25%, 04/06/99 $ 2,500,000
Other
4.64%, 02/03/00 53,892
----------
39,147,147
----------
TOTAL U.S. GOVERNMENT & AGENCIES 39,350,831
----------
Certificates of Deposit (5.98%)
Harris Trust and Savings Bank, Chicago, IL
4.83% - 4.87%, 04/15/99 - 04/26/99 15,999,976
Morgan Guaranty Trust Co. of NY
4.86%, 7/20/1999 5,000,000
----------
TOTAL CERTIFICATES OF DEPOSIT 20,999,976
----------
Bankers Acceptance (0.60%)
Key Bank U.S.A., N.A.
4.89%, 05/04/99 2,090,760
----------
TOTAL INVESTMENTS (99.70%) 349,914,520
CASH AND OTHER ASSETS,
LESS LIABILITIES (0.30%) 1,058,937
----------
NET ASSETS (100.0%) $350,973,457
============
Notes to Portfolio of Investments:
Interest rates represent annualized yield to date of maturity. For each
security, cost (for financial reporting and federal income tax purposes) and
carrying value are the same. Likewise, carrying value approximates principal
amounts.
(a) Short-term floating rate security. The rates shown are the current rates
at March 31, 1999. The dates shown represent the next interest rate change date.
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, 1999, 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 might 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 year ended March 31, 1999, the Fund incurred
management fees of $1,587,540.
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, 1999, the Fund made no direct payments to its
officers and incurred trustee fees for its unaffiliated trustees of $24,800.
<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,
1999, 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 1995. 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, 1999 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, 1999, 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 1995, in conformity with generally accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
April 26, 1999
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.
WH logo
Wayne Hummer Investmetns 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)
(920) 734.1474 (local)
www.whummer.com
<PAGE>
WAYNE HUMMER MONEY FUND TRUST
Annual Financial Statements
March 31, 1999
(Audited)
WAYNE HUMMER
MONEY FUND TRUST
300 South Wacker Drive
Chicago, IL 60606-6607
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