Semi-Annual Financial Statements
(Unaudited)
September 30, 1995
Wayne Hummer Growth Fund
Dear Shareholder:
This report details the Wayne Hummer Growth Fund's financial position for the
six-month period ended September 30, 1995. The net asset value of a Fund share
increased 13.2% from $21.79 on September 30, 1994 to $24.66 on September 30,
1995. If distributions, including those from capital gains, were reinvested
during the one year period, the annualized total return would be 16.5%. The
Fund's Board of Trustees declared an $ .08 dividend payable to shareholders on
October 26, 1995.
The Wayne Hummer Growth Fund is quite unusual in its low portfolio turnover
rate. This number is reported annually in our March shareholder letter. Over
the past five years, the average turnover rate has been about 5%. The average
growth fund turnover rate is 85% (Morningstar). Turnover for mutual funds is
defined as the "lesser" of portfolio purchases or sales as a percentage of
portfolio assets. The key word is lesser. Over the past five years our assets
have grown from $32,445,000 to $96,944,000 at September 30, 1995. We have
obviously purchased a lot of stock--we have just sold very little. We spend
considerable time searching for companies whose common shares possess the
potential to appreciate while presenting minimal risk. Once we find these
companies we sometimes add to them for years. We also believe in giving
managements time to perform. It is useful to remember that when we sell a
holding we want to replace it with something that is better. Finally, for
taxable shareholders we have minimized your taxes, and for taxable and
non-taxable portfolios we have minimized transaction costs.
This quarter we would like to highlight one of our longer term holdings,
Cincinnati Financial Corp. (CINF), a regional property/casualty insurer. CINF
was founded in 1950 by a group of independent agents to write insurance
coverage--primarily in the Midwest. The company is unique in that it relies
heavily on agents (over half of whom are shareholders); it is very selective
in terms of the risks it chooses to assume; it concentrates on small to medium
size commercial accounts; and probably most significantly, for most of its
existence it has operated a non-traditional investment portfolio. CINF's
strategy is to maintain appropriate liquidity and earn optimal returns by
investing in medium-risk fixed income maturities and equities (53% of the
December 1994 portfolio). The total return (income and appreciation) thus
achieved has contributed meaningfully to the company's financial growth and
competitive edge. Dividend history and growth potential are foremost in their
equity strategy and have resulted in average annual total return over the last
ten years of 21%. The careful risk underwriting, long term consistent focus,
and other conservative measures have made their above average performance
possible. We believe Cincinnati Financial continues to offer good value and
long term potential.
As always, we are pleased to be a part of your long-range financial planning.
Sincerely,
Alan W. Bird, CFA
President
October 26, 1995
<PAGE>
<TABLE>
Wayne Hummer Growth Fund
Value of $10,000 Initial Investment
<CAPTION>
Net Asset Cumulative Value Cumulative Value Net Asset
Value Of Reinvested Of Reinvested Value
Period At End Income Capital Gains With
Ended Of Period Dividends Distributions Reinvestment
<S> <C> <C> <C> <C>
30-Dec-83 $10,000 $ 0 $ 0 $10,000
31-Dec-84 10,170 245 0 10,415
31-Dec-85 12,250 695 7 12,952
31-Dec-86 13,330 1,023 381 14,734
31-Dec-87 13,220 1,323 1,557 16,100
31-Dec-88 13,740 1,669 1,821 17,230
31-Dec-89 16,410 2,306 2,656 21,372
31-Dec-90 16,000 2,843 3,600 22,443
31-Dec-91 20,020 4,142 4,757 28,919
31-Dec-92 21,640 4,919 5,355 31,914
31-Dec-93 22,060 5,485 5,511 33,056
31-Dec-94 21,340 5,766 5,649 32,755
30-Sep-95 24,660 6,902 6,704 38,266
Total Return and Annualized
Total Return for the Period Ended 9/30/95
<CAPTION>
1 Year 5 Year 10 Year
Cumulative Annualized Cumulative Annualized
<S> <C> <C> <C> <C>
16.45% 91.05% 13.82% 282.66% 12.10%
<FN>
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.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
September 30, 1995
<CAPTION>
Number
of
COMMON STOCKS (96.3%) Shares Value
<S> <C> <C>
Auto & Machinery (7.2%)
Echlin Incorporated 35,000 $ 1,251,250
Illinois Tool Works, Inc. 65,000 3,826,875
Regal-Beloit Corporation 100,000 1,862,500
-----------
6,940,625
Banks (7.4%)
First of America Bank Corporation 75,000 3,225,000
Northern Trust Corporation 60,000 2,760,000
UMB Financial Corp. 28,201 1,198,543
-----------
7,183,543
Chemical (14.3%)
Avery Dennison Corporation 100,000 4,200,000
Morton International, Inc. 120,000 3,720,000
Nalco Chemical Company 30,000 1,023,750
RPM, Inc. 80,000 1,590,000
Safety-Kleen Corp. 40,000 585,000
Schulman (A.), Inc. 110,000 2,750,000
-----------
13,868,750
Electrical/Electronics (7.4%)
AMP Incorporated 50,000 1,925,000
Emerson Electric Co. 55,000 3,932,500
Thomas & Betts Corporation 20,000 1,292,500
-----------
7,150,000
Food, Beverage & Household (12.7%)
Dean Foods Company 80,000 2,280,000
McCormick & Company, Incorporated 100,000 2,387,500
PepsiCo, Inc. 20,000 1,020,000
Rubbermaid Incorporated 100,000 2,762,500
Sara Lee Corporation 80,000 2,380,000
Smucker (The J. M.) Company Class B 80,000 1,500,000
-----------
12,330,000
Health Care (10.5%)
Abbott Laboratories 40,000 1,705,000
AMSCO International, Inc. (c) 50,000 993,750
Bard (C.R.) Inc. 60,000 1,830,000
Caremark International Inc. 36,250 779,375
R. P. Scherer Corporation (c) 85,000 3,686,875
Technol Medical Products (c) 60,000 1,155,000
-----------
10,150,000
<PAGE>
Insurance (8.1%)
AON Corporation 30,000 1,226,250
Cincinnati Financial Corporation 47,250 2,569,219
Ohio Casualty Corporation 50,000 1,787,500
Old Republic International Corporation 80,000 2,310,000
-----------
7,892,969
Merchandising (1.1%)
Arbor Drugs, Inc. 56,250 1,054,687
Oil & Gas (2.7%)
Baker Hughes Incorporated 15,000 305,625
Burlington Resources, Inc. 60,000 2,325,000
-----------
2,630,625
Paper & Forest Products (8.2%)
Albany International Corp. Class A 100,000 2,337,500
Consolidated Papers, Inc. 55,000 3,073,125
Sonoco Products Company 89,250 2,476,687
-----------
7,887,312
<PAGE>
<CAPTION>
Number
of
Shares Value
<S> <C> <C>
Publishing & Media (5.8%)
CCH Incorporated Class B 34,000 $ 756,500
Gannett Co., Inc. 35,000 1,911,875
Interpublic Group of Companies, Inc. 75,000 2,981,250
-----------
5,649,625
Services (4.9%)
H & R Block, Inc. 60,000 2,280,000
Kelly Services, Inc. Class A 93,750 2,507,813
-----------
4,787,813
Miscellaneous (6.0%)
Boeing Company 30,000 2,047,500
Calgon Carbon Corporation 85,000 998,750
Pall Corporation 120,000 2,790,000
-----------
5,836,250
-----------
Total Common Stocks (Cost: $64,032,377) $93,362,199
<PAGE>
<CAPTION>
SHORT-TERM INVESTMENTS (2.6%)
Date Principal
Commercial Paper (1.9% ) Rate% (1995) Amount Value
<S> <C> <C> <C> <C>
Ford Motor Credit Company 5.825 10/06 $ 544,000 $ 543,566
Prudential Funding Corp. 5.809 10/10 752,000 750,924
General Electric Capital
Services, Inc. 5.796 10/18 150,000 149,596
American General
Finance Company 5.812 10/25 158,000 157,399
Chevron Oil Finance Company 5.858 10/30 209,000 208,032
-----------
1,809,517
Other (0.7%)
United States Treasury Bill 5.477 11/09 25,000 24,855
United States Treasury Bill 5.383 12/28 652,000 643,649
Other 5.500 02/28/96 13,977 14,170
-----------
682,674
-----------
Total Short-Term Investments (Cost: $2,492,191) 2,492,191
-----------
TOTAL INVESTMENTS (Cost: $66,524,568) (98.9%) 95,854,390
CASH AND OTHER ASSETS, LESS LIABILITIES (1.1%) 1,090,347
-----------
NET ASSETS (100.0%) $96,944,737
===========
<FN>
Notes to Portfolio of Investments:
(a) Interest rates on money market instruments represent annualized yield to
date of maturity.
(b) Based on cost of investments of $66,524,568 for federal income tax
purposes at September 30, 1995, the aggregate gross unrealized appreciation
was $30,417,075, the aggregate gross unrealized depreciation was $1,087,253
and the net unrealized appreciation of investments was $29,329,822.
(c) Non-income producing security.
</TABLE>
<PAGE>
<TABLE>
Statement of Assets and Liabilities
<CAPTION>
September 30, Year ended
1995 March 31,
(Unaudited) 1995
<S> <C> <C>
Assets
Investments, at value (Cost: $66,524,568 and $69,854,710, respectively) $95,854,390 $94,673,328
Other assets:
Receivable for investments sold 814,473 0
Cash 200,309 4,799
Dividends receivable 164,993 167,478
Prepaid expenses 12,960 16,421
Insurance deposit 3,845 3,846
----------- -----------
Total assets 97,050,970 94,865,872
Liabilities and Net Assets
Due to Wayne Hummer Management Company 64,945 62,883
Accounts payable 41,288 33,261
----------- -----------
Total liabilities 106,233 96,144
----------- -----------
Net assets applicable to 3,931,006 and 4,045,128 Shares outstanding,
no par value, equivalent to $24.66 and $23.43 per Share, respectively $96,944,737 $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 $66,426,798 $69,214,977
Unrealized appreciation of investments 29,329,822 24,818,618
Undistributed net realized gain on sales of investments 871,957 437,110
Undistributed net investment income 316,160 299,023
----------- -----------
Net assets applicable to Shares outstanding $96,944,737 $94,769,728
=========== ===========
The Pricing of Shares
Net asset value, offering and redemption price per Share
($96,944,737 divided by 3,931,006 Shares outstanding and
$94,769,728 divided by 4,045,128 Shares outstanding, respectively) $ 24.66 $ 23.43
=========== ===========
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
<CAPTION>
Six months ended
September 30, Year ended
1995 March 31,
(Unaudited) 1995
<S> <C> <C>
Investment income:
Dividends $1,004,438 $ 2,072,535
Interest 147,138 190,476
---------- -----------
Total investment 1,151,576 2,263,011
Expenses:
Management fee 387,613 721,072
Transfer agent fees 36,500 72,600
Custodian fees 12,400 46,600
Registration costs 13,803 23,328
Professional fees 28,300 44,450
Trustee fees 10,500 15,500
Portfolio accounting fees 5,912 5,196
Other 24,617 35,884
---------- -----------
Total expenses 519,645 964,630
---------- -----------
Net investment income 631,931 1,298,381
---------- -----------
Net realized gain on sales of investments 871,957 1,299,662
Net increase in unrealized appreciation 4,511,204 8,553,581
---------- -----------
Net gain on investments 5,383,161 9,853,243
---------- -----------
Net increase in net assets resulting from operations $6,015,092 $11,151,624
========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
Six months ended
September 30, Year ended
1995 March 31,
(Unaudited) 1995
<S> <C> <C>
Operations:
Net investment income $ 631,931 $ 1,298,381
Net realized gain on sales of investments 871,957 1,299,662
Net increase in unrealized appreciation 4,511,204 8,553,581
----------- -----------
Net increase in net assets resulting from operations 6,015,092 11,151,624
Dividends to Shareholders from:
Net investment income (614,794) (1,276,626)
Net realized gain on investments (437,110) (862,552)
----------- -----------
Total dividends to Shareholders (1,051,904) (2,139,178)
Capital Share transactions:
Proceeds from Shares sold 3,025,134 8,456,852
Shares issued upon reinvestment of dividends 1,010,409 2,062,820
----------- -----------
4,035,543 10,519,672
Less payments for Shares redeemed 6,823,722 17,153,071
----------- -----------
Decrease from Capital Share transactions (2,788,179) (6,633,399)
----------- -----------
Total increase in net assets 2,175,009 2,379,047
Net assets:
Beginning of period 94,769,728 92,390,681
----------- -----------
End of period (including undistributed net investment income
of $316,160 and $299,023, respectively) $96,944,737 $94,769,728
=========== ===========
</TABLE>
<PAGE>
<TABLE>
Financial Highlights
(For a Share outstanding throughout each period)
<CAPTION>
Six months ended
September 30, Year ended
1995 March 31,
(Unaudited) 1995
<S> <C> <C>
Net asset value, beginning of period $ 23.43 $ 21.23
Income from investment operations:
Net investment income 0.16 0.32
Net realized and unrealized gains on securities 1.33 2.40
------- -------
Total from investment operations 1.49 2.72
Less distributions:
Dividends from net investment income (0.15) (0.31)
Distributions from net realized gains on securities (0.11) (0.21)
------- -------
Total distributions (0.26) (0.52)
Net asset value, end of period $ 24.66 $ 23.43
======= =======
Total Return 6.41% 13.04%
Ratios and Supplementary Data
Net assets, end of period (000's) $96,944 $94,770
Ratio of expenses to average net assets 1.07%(a) 1.07%
Ratio of net investment income to average net assets 1.31%(a) 1.44%
Portfolio turnover rate 3%(a) 3%
<FN>
(a) Determined on an annualized basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
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.
<PAGE>
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 October 24, 1995, an ordinary
income dividend of $.08 per Share was declared, payable October 26, 1995 to
Shareholders of record on October 24, 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.
<PAGE>
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 period ended September
30, 1995 and the year ended March 31, 1995, the Fund incurred management fees
of $387,613 and $721,072, 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.
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 six month period ended September 30, 1995 and the year ended March 31,
1995, the Fund made no direct payments to its officers and incurred trustee
fees for its unaffiliated trustees of $10,500 and $15,500, respectively.
<PAGE>
<TABLE>
5. Investment Transactions
Investment transactions (excluding money market instruments) are as follows:
<CAPTION>
Six months
ended Year ended
September 30, 1995 March 31, 1995
<S> <C> <C>
Purchases $1,284,162 $2,364,625
Proceeds from sales $3,951,227 $7,526,338
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:
<CAPTION>
Six months
ended Year ended
September 30, 1995 March 31, 1995
<S> <C> <C>
Shares sold 126,662 395,513
Shares issued upon
reinvestment of
dividends 42,598 96,627
-------- --------
169,260 492,140
Shares redeemed 283,382 799,693
-------- --------
Net decrease in
Shares outstanding (114,122) (307,553)
======== ========
</TABLE>
<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 Investment Trust.
Wayne Hummer & Co.
Serving Investors Since 1931
300 South Wacker
Chicago, Illinois
60606
1.800.621.4477 (toll-free)
(312) 431.1700 (local)
200 E. Washington Street
Appleton, Wisconsin
54911
1.800.678.0833 (toll-free)
(414) 734.1474 (local)
