<PAGE>
ANNUAL FINANCIAL STATEMENTS
(Audited)
MARCH 31, 1995
Wayne
Hummer
Growth
Fund
Dear Fellow Shareholder:
This annual report of the Wayne Hummer Growth Fund (the "Fund") covers the
eleventh complete fiscal year that ended March 31, 1995, and contains a chart
comparing a hypothetical $10,000 investment in the Fund with a similar amount
invested in "the market" as well as management's discussion and analysis of the
Fund's performance during the past fiscal year. As proxies for "the market" we
provide both the Standard & Poor's 500 Composite Stock Price Index (the "S&P
500") and the Russell Mid Cap Index. The S&P 500 is widely recognized and
commonly cited in the financial press as a barometer of market activity. Stocks
in the S&P 500 represent a broad distribution by industry group, comparable to
that of stocks traded on the New York Stock Exchange. In fact, over 90% of the
market capitalization of the S&P 500 comes from companies listed on the New York
Stock Exchange. The companies comprising the S&P 500 have a mean market
capitalization in excess of $6.6 billion. We believe, however, that the Russell
Mid Cap Index more closely represents the significant characteristics of the
Fund. The Russell Mid Cap Index has a weighted mean market capitalization of
$2.3 billion, estimated price/earnings ratio for 1995 of 17.5, and return on
shareholder's equity of 18.6%. The securities in the Fund's portfolio have a
weighted market capitalization (less the 5 largest companies) of $2.6 billion,
weighted P/E of 17.4, and weighted return on shareholders equity of 17.0%.
For most of the time since the inception of the Fund, its performance has
tracked that of the two indices quite closely, with some of the negative
variation attributable to the Fund's expense ratio which averaged 1.37%
(currently 1.07%) over the past eleven years. Even giving effect to its expense
ratio, the Fund outperformed both indices in the down market years of 1987 and
1990.
For the fiscal year ended March 31, 1995, the value of a Fund share increased to
$23.43 from $21.23 at March 31, 1994, or 10.4%. If distributions to shareholders
of income and capital gains were reinvested, the Fund's total return would be
13.0%. During this same period the total return of the S&P 500 was 15.5% and the
Russell Mid Cap Index, 11.4%.
In general, growth stock mutual funds with investment criteria similar to that
of the Fund under performed the market in 1993 and the early part of 1994. In
early 1994, however, the Federal Reserve started to increase interest rates to
slow an economy that showed evidence of overheating and to dampen increasing
inflationary pressures. With the growing expectation that the economy would
slow, investors shifted from economically sensitive and foreign issues into
higher quality, defensive, and more traditional growth stocks in which the Fund
invests. Coincidentally, at about this time last year the Fund's relative
performance also began to improve as the types of investments favored by the
Fund gained investor popularity. In addition, the Fund's cash equivalent
position was 5% or less during the first quarter of calendar year 1995 (the
Fund's fourth fiscal quarter). Being so fully invested in the market also
contributed to the Fund's performance during a period when the market was up
strongly. As signs of an economic slowdown proliferate, the Fund's investment
advisor, Wayne Hummer Management Company, believes that investment emphasis will
continue to be placed on high financial quality growth stocks with defensive
characteristics that can tolerate a more difficult environment.
The Trustees of the Fund declared an $.08 ordinary income dividend and an $.11
long term gain distribution which was paid on April 28, 1995.
As always, we are pleased to be part of your long-range financial planning.
Sincerely,
[Signature]
Alan W. Bird, CFA
President
April 28, 1995
<PAGE>
WAYNE HUMMER GROWTH FUND VS.
RUSSELL MID-CAP AND THE S&P 500
WAYNE HUMMER RUSSELL
GROWTH FUND S&P 500 MID-CAP
3/31/85 $10,000.00 $10,000.00 $10,000.00
6/30/85 $10,547.04 $10,736.00 $10,793.41
9/30/85 $10,040.76 $10,295.82 $10,681.51
12/31/85 $11,745.56 $12,069.79 $12,465.16
3/31/86 $13,344.50 $13,772,84 $14,505.39
6/30/86 $13,785.98 $14,585.44 $15,397.74
9/30/86 $12,543.10 $13,565.92 $14,306.13
12/31/86 $13,360.99 $14,321.54 $14,732.12
3/31/87 $16,241.63 $17,382.05 $17,703.23
6/30/87 $16,708.31 $18,254.63 $18,024.23
9/30/87 $17,922.88 $19,459.44 $19,087.49
12/31/87 $14,600.49 $15,081.06 $14,765.86
3/30/88 $15,274.88 $15,940.68 $16,569.57
6/30/88 $15,768.54 $16,976.83 $17,771.60
9/30/88 $15,490.86 $17,041.34 $17,606.74
12/31/88 $15,624.31 $17,561.10 $17,691.24
3/31/89 $16,432.47 $18,800.92 $19,010.93
6/30/89 $17,426.50 $20,436.60 $20,748.92
9/30/89 $18,912.86 $22,625.35 $22,725.42
12/31/89 $19,378.41 $23,086.91 $22,335.74
3/31/90 $19,534.51 $22,396.61 $21,472.92
6/30/90 $20,644.12 $23,771.77 $22,268.03
9/30/90 $18,163.49 $20,515.03 $17,853.01
12/31/90 $20,351.48 $22,334.72 $19,770.68
3/31/91 $22,946.30 $25,595.59 $23,818.78
6/30/91 $23,338.07 $25,482.97 $23,954.20
9/30/91 $24,242.33 $26,856.50 $25,729.18
12/31/91 $26,221.77 $29,107.07 $27,988.60
3/31/92 $26,420.60 $28,379.39 $28,423.86
6/30/92 $26,231.33 $28,887.39 $28,364.69
9/30/92 $27,809.21 $29,826.23 $30,861.67
12/31/92 $28,941.11 $31,338.42 $34,103.04
3/31/93 $29,048.10 $32,691.61 $35,956.90
6/30/93 $28,673.82 $32,825.64 $36,523.89
9/30/93 $28,796.68 $33,665.98 $38,478.79
12/31/93 $29,781.09 $34,675.96 $38,980.18
3/31/94 $28,848.97 $33,354.81 $37,827.72
6/30/94 $28,501.87 $33,468.21 $37,010.64
9/30/94 $29,799.91 $35,114.85 $39,115.81
12/31/94 $29,704.27 $35,107.82 $38,163.34
3/31/95 $32,612.65 $38,523.82 $42,135.36
<TABLE>
<CAPTION>
Wayne Hummer Growth Fund
- ----------------------------------------------
Period Growth Total Return
Ended of Cumu- Average
3/31/95 $10,000 lative Annual
- ----------------------------------------------
<S> <C> <C> <C>
1 Year $11,304 13.04% 13.04%
5 Year $16,695 66.95% 10.79%
10 Year $32,612 226.12% 12.55%
Russell Mid Cap
- ----------------------------------------------
Period Growth Total Return
Ended of Cumu- Average
3/31/95 $10,000 lative Annual
- ----------------------------------------------
1 Year $11,139 11.39% 11.39%
5 Year $19,623 96.23% 14.43%
10 Year $42,135 321.35% 15.47%
S & P 500
- ----------------------------------------------
Period Growth Total Return
Ended of Cumu- Average
3/31/95 $10,000 lative Annual
- ----------------------------------------------
1 Year $11,550 15.50% 15.50%
5 Year $17,201 72.01% 11.46%
10 Year $38,524 285.24% 14.44%
</TABLE>
WAYNE HUMMER GROWTH FUND
VALUE OF AN ASSUMED $10,000 INITIAL INVESTMENT
NET VALUE OF VALUE OF
ASSET REINVESTED REINVESTED
VALUE DIVIDENDS CAPITAL GAINS
31-Dec-83 1983 $10,000 $0 $0
31-Mar-84 $9,830 $0 $0
30-Jun-84 $9,350 $58 $0
30-Sep-84 $9,980 $149 $0
31-Dec-84 1984 $10,170 $245 $0
31-Mar-85 $10,670 $357 $0
30-Jun-85 $11,120 $504 $7
30-Sep-85 $10,530 $536 $6
31-Dec-85 1985 $12,250 $695 $7
31-Mar-86 $13,850 $857 $8
30-Jun-86 $13,880 $926 $397
30-Sep-86 $12,570 $903 $359
31-Dec-86 1986 $13,330 $1,023 $381
31-Mar-87 $16,140 $1,309 $461
30-Jun-87 $15,840 $1,436 $1,149
30-Sep-87 $16,930 $1,606 $1,228
31-Dec-87 1987 $13,220 $1,323 $1,557
31-Mar-88 $13,790 $1,430 $1,624
30-Jun-88 $14,190 $1,523 $1,676
30-Sep-88 $13,900 $1,540 $1,642
31-Dec-88 1988 $13,740 $1,669 $1,821
31-Mar-89 $14,450 $1,756 $1,915
30-Jun-89 $15,130 $1,935 $2,152
30-Sep-89 $16,360 $2,169 $2,327
31-Dec-89 1989 $16,410 $2,306 $2,656
31-Mar-90 $16,540 $2,324 $2,678
30-Jun-90 $16,960 $2,580 $3,224
30-Sep-90 $14,860 $2,343 $2,825
31-Dec-90 1990 $16,000 $2,843 $3,600
31-Mar-91 $18,040 $3,206 $4,059
30-Jun-91 $18,130 $3,365 $4,242
30-Sep-91 $18,740 $3,609 $4,385
31-Dec-91 1991 $20,020 $4,142 $4,757
31-Mar-92 $20,170 $4,173 $4,792
30-Jun-92 $19,840 $4,202 $4,883
30-Sep-92 $20,950 $4,560 $5,156
31-Dec-92 1992 $21,640 $4,919 $5,355
31-Mar-93 $21,720 $4,938 $5,374
30-Jun-93 $21,380 $4,949 $5,290
30-Sep-93 $21,400 $5,060 $5,295
31-Dec-93 1993 $22,060 $5,486 $5,511
31-Mar-94 $21,230 $5,279 $5,303
30-Jun-94 $20,910 $5,297 $5,223
30-Sep-94 $21,790 $5,628 $5,443
31-Dec-94 1994 $21,340 $5,766 $5,649
31-Mar-95 $23,430 $6,331 $6,202
NOTE: Performance data quoted herein represents past performance. Actual
investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost.
<PAGE>
WAYNE HUMMER GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
ASSETS MARCH 31, 1995
- ------ --------------
<S> <C>
Investments, at value (Cost $69,854,710).......... $94,673,328
Other assets:
Cash............................................ 4,799
Dividends receivable............................ 167,478
Prepaid expenses................................ 16,421
Insurance deposit............................... 3,846
-----------
Total assets.................................. 94,865,872
LIABILITIES AND NET ASSETS
- --------------------------
Due to Wayne Hummer Management Company............ 62,883
Accounts payable.................................. 33,261
-----------
Total liabilities............................. 96,144
-----------
Net assets applicable to 4,045,128
Shares outstanding, no par value,
equivalent to $23.43 per Share................. $94,769,728
===========
ANALYSIS OF NET ASSETS
- ----------------------
Excess of amounts received from issuance of
Shares over amounts paid on redemptions of
Shares on account of capital.................... $69,214,977
Unrealized appreciation of investments............ 24,818,618
Undistributed net realized gain on sales
of investments.................................. 437,110
Undistributed net investment income............... 299,023
-----------
Net assets applicable to Shares outstanding....... $94,769,728
===========
THE PRICING OF SHARES
- ---------------------
Net asset value, offering and redemption price
per share ($94,769,728 / 4,045,128 Shares
outstanding)................................... $23.43
===========
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
MARCH 31, 1995
--------------
<S> <C>
Investment income:
Dividends....................................... $ 2,072,535
Interest........................................ 190,476
-----------
Total investment income....................... 2,263,011
Expenses:
Management fee.................................. 721,072
Transfer agent fees............................. 72,600
Custodian fees.................................. 46,600
Registration costs.............................. 23,328
Audit fees...................................... 21,450
Legal fees...................................... 23,000
Trustee fees.................................... 15,500
Portfolio accounting fees....................... 5,196
Other........................................... 35,884
-----------
Total expenses................................ 964,630
-----------
Net investment income............................. 1,298,381
-----------
Net realized gain on sales of investments......... 1,299,662
Net increase in unrealized appreciation........... 8,553,581
-----------
Net gain on investments........................... 9,853,243
-----------
Net increase in net assets resulting
from operations................................. $11,151,624
===========
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31
1995 1994
----------- -----------
<S> <C> <C>
Operations:
Net investment income.............................................. $ 1,298,381 $ 1,283,837
Net realized gain on sales of investments.......................... 1,299,662 275,819
Net increase (decrease) in unrealized appreciation................. 8,553,581 (1,964,263)
----------- -----------
Net increase (decrease) in net assets resulting from operations...... 11,151,624 (404,607)
Dividends to Shareholders from:
Net investment income.............................................. (1,276,626) (1,269,041)
Net realized gain on investments................................... (862,552) (275,819)
----------- -----------
Total dividends to Shareholders...................................... (2,139,178) (1,544,860)
Capital Share transactions:
Proceeds from Shares sold.......................................... 8,456,852 18,706,576
Shares issued upon reinvestment of dividends....................... 2,062,820 1,497,457
----------- -----------
10,519,672 20,204,033
Less payments for Shares redeemed.................................. 17,153,071 19,061,723
----------- -----------
Increase (decrease) from Capital Share transactions.................. (6,633,399) 1,142,310
----------- -----------
Total increase (decrease) in net assets.............................. 2,379,047 (807,157)
Net assets:
Beginning of year.................................................. 92,390,681 93,197,838
----------- -----------
End of year (including undistributed net investment income of
$299,023 and $277,268 at March 31, 1995 and 1994, respectively).. $94,769,728 $92,390,681
=========== ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PORTFOLIO OF INVESTMENTS
March 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
------- -----------
<S> <C> <C>
COMMON STOCKS (95.7%)
- -------------
AUTO & MACHINERY (10.3%)
- ----------------
Echlin Incorporated 35,000 $ 1,347,500
Emerson Electric Co. 55,000 3,657,500
Illinois Tool Works, Inc. 65,000 3,176,875
Regal-Beloit Corporation 100,000 1,562,500
-----------
9,744,375
BANKS (5.8%)
- -----
First of America Bank Corporation 75,000 2,521,875
Northern Trust Corporation 60,000 2,107,500
UMB Financial Corp. 28,201 846,030
-----------
5,475,405
CHEMICAL (17.4%)
- --------
Avery Dennison Corp. 100,000 3,987,500
International Flavors & Fragrances, Inc. 45,000 2,323,125
Morton International, Inc. 120,000 3,480,000
Nalco Chemical Company 30,000 1,008,750
RPM, Inc. 80,000 1,590,000
Safety-Kleen Corp. 40,000 715,000
Schulman (A.), Inc. 110,000 3,355,000
-----------
16,459,375
ELECTRONICS (3.3%)
- -----------
AMP Incorporated 50,000 1,800,000
Thomas & Betts Corporation 20,000 1,295,000
-----------
3,095,000
FOOD, BEVERAGE & HOUSEHOLD (12.3%)
- --------------------------
Dean Foods Company 80,000 2,260,000
McCormick & Company, Incorporated 100,000 2,262,500
PepsiCo, Inc. 20,000 780,000
Rubbermaid Incorporated 80,000 2,640,000
Sara Lee Corporation 80,000 2,090,000
Smucker (The J. M.) Company Class B 80,000 1,610,000
-----------
11,642,500
HEALTH CARE (9.4%)
- -----------
Abbott Laboratories 40,000 1,425,000
AMSCO International, Inc. (c) 50,000 681,250
Bard (C.R.) Inc. 60,000 1,657,500
Caremark International Inc. 36,250 715,938
R. P. Scherer Corporation (c) 70,000 3,517,500
Technol Medical Products (c) 50,000 950,000
-----------
8,947,188
INSURANCE (7.4%)
- ---------
AON Corporation 30,000 $ 1,095,000
Cincinnati Financial Corporation 45,000 2,340,000
Ohio Casualty Corporation 50,000 1,687,500
Old Republic International Corporation 80,000 1,920,000
-----------
7,042,500
MERCHANDISING (1.8%)
- -------------
Arbor Drugs, Inc. 37,500 890,625
Shopko Stores, Inc. 75,000 768,750
-----------
1,659,375
OIL & GAS (3.8%)
- ---------
Baker Hughes Incorporated 55,000 1,120,625
Burlington Resources, Inc. 60,000 2,445,000
-----------
3,565,625
PAPER & FOREST PRODUCTS (7.0%)
- -----------------------
Albany International Corp. Class A 100,000 1,887,500
Consolidated Papers, Inc. 55,000 2,736,250
Sonoco Products Company 85,000 2,061,250
-----------
6,685,000
PUBLISHING & MEDIA (5.5%)
- ------------------
CCH Incorporated Class B 34,000 578,000
Gannett Inc. 35,000 1,868,125
Interpublic Group of Companies, Inc. 75,000 2,803,125
-----------
5,249,250
SERVICES (6.3%)
- --------
H & R Block, Inc. 60,000 2,602,500
Kelly Services, Inc. Class A 93,750 3,375,000
-----------
5,977,500
MISCELLANEOUS (5.4%)
- -------------
Boeing Company 30,000 1,616,250
Calgon Carbon Corporation 85,000 966,875
Pall Corporation 120,000 2,520,000
-----------
5,103,125
-----------
Total Common Stocks (Cost: $65,827,600) 90,646,218
</TABLE>
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENTS (4.2%)
- ----------------------
MATURITY DATE PRINCIPAL
COMMERCIAL PAPER (2.5%) RATE% (1995) AMOUNT
- ---------------- ----- ------------- ----------
<S> <C> <C> <C> <C>
Ford Motor Credit Company 6.036 04/03 $ 200,000 199,934
Prudential Funding Corp. 6.017 04/05 384,000 383,747
American Express Credit Corporation 6.043 04/10 643,000 642,043
General Electric Capital Services, Inc. 6.066 04/13 320,000 319,363
Ford Motor Credit Company 6.055 04/17 481,000 479,727
Associates Corp. of North America 6.077 04/24 380,000 378,551
-----------
2,403,365
OTHER (1.7%)
- -----
United States Treasury Bill 5.845 04/27 165,000 164,316
United States Treasury Bill 5.778 05/25 1,458,000 1,445,643
Other 5.500 02/28/96 13,780 13,786
-----------
1,623,745
-----------
Total Short-Term Investments (Cost: $4,027,110) 4,027,110
-----------
TOTAL INVESTMENTS (COST: $69,854,710) (99.9%) 94,673,328
CASH AND OTHER ASSETS, LESS LIABILITIES (0.1%) 96,400
-----------
NET ASSETS (100.0%) $94,769,728
===========
</TABLE>
NOTES TO PORTFOLIO OF INVESTMENTS:
(a) Interest rates on money market instruments represent annualized yield to
date of maturity.
(b) Based on the cost of investments of $69,854,710 for federal income tax
purposes at March 31, 1995, the aggregate gross unrealized appreciation was
$26,856,764, the aggregate gross unrealized depreciation was $2,038,146 and
the net unrealized appreciation of investments was $24,818,618.
(c) Non-income producing security.
<PAGE>
FINANCIAL HIGHLIGHTS
(For a Share outstanding throughout each year)
<TABLE>
<CAPTION>
Year ended March 31,
1995 1994 1993 1992 1991
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD....................... $ 21.23 $ 21.72 $ 20.17 $ 18.04 $ 16.54
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................... 0.32 0.28 0.28 0.36 0.46
Net realized and unrealized gains (losses) on securities. 2.40 (0.42) 1.70 2.32 2.23
------- ------- ------- ------- -------
Total from investment operations......................... 2.72 (0.14) 1.98 2.68 2.69
LESS DISTRIBUTIONS:
Dividends from net investment income..................... (0.31) (0.28) (0.29) (0.39) (0.44)
Distributions from net realized gains on securities...... (0.21) (0.07) (0.14) (0.16) (0.75)
------- ------- ------- ------- -------
Total distributions...................................... (0.52) (0.35) (0.43) (0.55) (1.19)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD............................. $ 23.43 $ 21.23 $ 21.72 $ 20.17 $ 18.04
======= ======= ======= ======= =======
TOTAL RETURN............................................... 13.04% (0.69%) 9.94% 15.14% 17.47%
------- ------- ------- ------- -------
RATIOS AND SUPPLEMENTARY DATA
Net assets, end of period (000's)........................ $94,770 $92,391 $93,198 $55,837 $32,445
Ratio of expenses to average net assets.................. 1.07% 1.07% 1.12% 1.23% 1.36%
Ratio of net investment income to average net assets..... 1.44% 1.33% 1.41% 2.01% 2.87%
Portfolio turnover rate.................................. 3% 2% 1% 3% 13%
</TABLE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
ORGANIZATION:
Wayne Hummer Investment Trust (the "Trust"), formerly named Wayne Hummer
Growth Fund Trust, is organized as an unincorporated business trust under the
laws of Massachusetts. The Trust consists of two investment portfolios, the
Wayne Hummer Growth Fund (the "Fund") and the Wayne Hummer Income Fund, each
operating as a separate mutual fund. The Fund commenced investment operations
on December 30, 1983, and may issue an unlimited number of full and
fractional units of beneficial interest (Shares) without par value.
1. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
Investments are stated at value. Each listed and unlisted security for which
last sale information is regularly reported is valued at the last reported
sale price on that day. If there has been no sale on such day, the last
reported sale price prior to that day is utilized if such sale is between the
closing bid and asked price of the current day. If the last price on a prior
day is not between the current day's closing bid and asked price, then the
value of such security is taken to be the mean between the current day's bid
and asked price. Any unlisted security for which last sale information is not
regularly reported and any listed debt security which has an inactive listed
market for which over-the-counter market quotations are readily available is
valued at the highest closing bid price determined on the basis of reasonable
inquiry, except that debt securities having a remaining maturity of 60 days
or less are valued on an amortized cost basis. Restricted securities and any
other securities or other assets for which market quotations are not readily
available are valued by appraisal at their fair value as determined in good
faith under procedures established by the Board of Trustees.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on the trade date. Dividend income is
recorded on the ex-dividend date, and interest income is recorded on the
accrual basis and includes amortization of money market instrument premium
and discount.
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 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 Fund'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.
Ordinary income dividends are normally declared and paid in April, July,
October, and December. Capital gains dividends, if any, are paid at least
annually. Dividends will be reinvested in additional Shares unless a
Shareholder requests payment in cash. Dividends payable to Shareholders are
recorded by the Fund on the ex-dividend date. On April 26, 1995, an ordinary
income dividend of $.08 per Share and a capital gain dividend of $0.11 per
Share were declared, payable April 28, 1995, to Shareholders of record on
April 26, 1995.
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"). The shareholders of the Investment Adviser are the
general partners of Wayne Hummer & Co. ("Distributor and Shareholder Service
Agent"). For advisory and management services and facilities furnished, the
Fund pays fees of .80 of 1% on the first $100 million of average daily net
assets, .65 of 1% of the next $150 million of average daily net assets and
.50 of 1% of the average daily net assets in excess of $250 million. 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 the lesser of (1) 1.50% of the average daily net assets of
the Fund or (2) the expense limitations applicable to the Fund imposed by any
state in which the Fund's Shares are sold. During the year ended March 31,
1995, the Fund incurred management fees of $721,072.
<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
Growth Fund.
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.
Wayne Hummer & Co. serves as Distributor and Shareholder Service Agent
without compensation from the Fund.
Certain trustees of the Fund are also officers or directors of the Investment
Adviser or partners of the Distributor and Shareholder Service Agent. During
the year ended March 31, 1995, the Fund made no direct payments to its
officers and incurred trustee fees for its unaffiliated trustees of $15,500.
5. INVESTMENT TRANSACTIONS
Investment transactions (excluding money market instruments) are as follows:
<TABLE>
<CAPTION>
Year ended
March 31, 1995
--------------
<S> <C>
Purchases $2,364,625
Proceeds from sales $7,526,338
</TABLE>
6. FUND SHARE TRANSACTIONS
Proceeds and payments on Fund Shares as shown in the Statement of Changes in
Net Assets are in respect of the following number of shares:
<TABLE>
<CAPTION>
Year ended March 31,
1995 1994
-------- --------
<S> <C> <C>
Shares sold................................... 395,513 867,010
Shares issued upon reinvestment of dividends.. 96,627 69,341
-------- --------
492,140 936,351
Shares redeemed............................... 799,693 (874,902)
-------- --------
Net decrease in Shares outstanding............ (307,553) 61,449
======== ========
</TABLE>
7. FEDERAL TAX STATUS OF 1994 DIVIDENDS
The income dividend is taxable as ordinary income. The dividends paid to you,
whether received in cash or reinvested in Shares, must be included on your
federal income tax return and must be reported by the Fund to the Internal
Revenue Service in accordance with U.S. Treasury Department regulations. An
amount equal to 100% of ordinary income dividends paid during 1994 qualifies
for the dividends-received deduction available to corporations as provided by
the Internal Revenue Code.
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Wayne Hummer Growth Fund
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Wayne Hummer Growth Fund as of March 31, 1995,
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 1991. 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, 1995, 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 Growth Fund as of March 31, 1995, 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
1991, in conformity with generally accepted accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
April 28, 1995
WAYNE HUMMER & CO.
300 South Wacker 200 E. Washington Street
Chicago, Illinois Appleton, Wisconsin
60606 54911
1 800 621 4477 (toll-free) 1 800 678 0833 (toll-free)
(312) 431 1700 (local) (414) 734 1474 (local)
