WAYNE
HUMMER
INCOME
FUND
Semi-Annual
Financial Statements
September 30, 1996
(Unaudited)
WAYNE
HUMMER
INCOME
FUND
Dear Shareholders,
We are pleased to provide you with the semi-annual report for the Wayne Hummer
Income Fund for the period ended September 30, 1996.
For the six-month period ended September 30, 1996, the Fund provided its
shareholders with a return on their investment of 2.05% (dividends reinvested
plus the change in share price). The Fund ended the period with a net asset
value of $14.79 per share and paid $0.46 per share in dividends, which amounts
to a distribution rate of 3.11% for a six month period.
During the past six months, intermediate-term interest rates continued to
increase due to concerns of increased economic activity and accelerating
inflation. Bond prices were driven lower by the increased interest rates--as
interest rates rise, bond prices fall. As a result, the Fund adjusted the
portfolio to take advantage of the decrease in prices and position itself for
future market changes.
While interest rates were rising, we were extending the Fund's average
portfolio maturity and duration--primarily through the purchase of longer-term
securities and the sale of shorter-term securities. Our goal was to lock in
higher yielding interest rates for longer periods of time. As a result, the
Fund's average maturity now stands at 6.93 years, up from 5.93 years at March
31. The Fund's average duration, which is a good barometer of a portfolio's
price volatility due to interest rate changes, increased to 4.96 years from
4.37 years. Extending the portfolio's maturity and duration should enhance the
Fund's performance if interest rates remain steady or fall.
These changes have not impacted the credit quality of the portfolio which
remains high with more than 36% of all assets invested in U.S. Government and
U.S. Government Agency securities. At September 30, 1996, all of the Fund's
assets were rated within the four highest credit categories assigned by
Moody's or Standard & Poor's.
Our near-term forecast for the economy calls for moderate economic growth and
subdued levels of inflation. We expect relatively stable interest rates
through the remainder of this year and early next year. If interest rates
rise, however, we intend to extend the portfolio's maturity and duration
further to capture the increased rates. On the other hand, if interest rates
fall significantly, we will move to shorten the portfolio. In any event, we
will continue to pursue a relatively conservative fixed income strategy, while
seeking to achieve a high level of current income.
Included in this report are the financial statements of the Fund and a
detailed listing of securities held in the portfolio. We hope you find them
informative.
As always, we appreciate the privilege of investing your funds.
Sincerely,
/s/ David P. Poitras
David P. Poitras
Vice President and Portfolio Manager
October 21, 1996
photo: David P. Poitras
<PAGE>
<TABLE>
<CAPTION>
WAYNE HUMMER INCOME FUND VS MERRILL LYNCH DOMESTIC MASTER INDEX
Wayne Hummer Merrill Lynch
Income Fund Domestic Master Index
<S> <C> <C>
12/1/92 $10,000 $10,000
12/31/1992 $10,035 $10,149
03/31/1993 $10,431 $10,572
06/30/1993 $10,737 $10,855
09/30/1993 $11,080 $11,155
12/31/1993 $11,044 $11,166
03/31/1994 $10,892 $10,857
06/30/1994 $10,722 $10,742
09/30/1994 $10,751 $10,803
12/31/1994 $10,835 $10,851
03/31/1995 $11,344 $11,393
06/30/1995 $11,865 $12,094
09/30/1995 $12,115 $12,327
12/31/1995 $12,518 $12,860
03/31/1996 $12,342 $12,634
06/30/1996 $12,412 $12,695
09/30/1996 $12,595 $12,928
September 30, 1996
</TABLE>
<TABLE>
<CAPTION>
WAYNE HUMMER INCOME FUND MERRILL LYNCH DOMESTIC MASTER
- --------------------------------------------------- ----------------------------------------------------
PERIOD GROWTH TOTAL RETURN PERIOD GROWTH TOTAL RETURN
ENDED OF CUMU- AVERAGE ENDED OF CUMU- AVERAGE
9/30/96 $10,000 LATIVE ANNUAL 9/30/96 $10,000 LATIVE ANNUAL
- --------------------------------------------------- ----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Year $10,394 3.94% 3.94% 1 Year $10,488 4.88% 4.88%
12/1/92- $12,595 25.95% 6.20% 12/1/92- $12,928 29.28% 6.93%
9/30/96 9/30/96
<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.
The Merrill Lynch Domestic Master Index is an unmanaged index of fixed
rate coupon bearing government, investment grade corporate and mortgage
pass-through securities.
</FN>
</TABLE>
<PAGE>
FUND OVERVIEW
ESTABLISHED IN 1992, THE PRIMARY OBJECTIVE OF THE WAYNE HUMMER INCOME FUND IS
TO ACHIEVE AS HIGH A LEVEL OF CURRENT INCOME AS IS CONSISTENT WITH PRUDENT
INVESTMENT MANAGEMENT. IN MANAGING THE FUND, WE WORK TO INCREASE THE TOTAL
VALUE OF YOUR INVESTMENT, WHICH INCLUDES THE AMOUNT OF CURRENT INCOME
DISTRIBUTED AND ANY APPRECIATION OR DEPRECIATION OF THE SECURITIES IN THE
FUND'S PORTFOLIO.
Dave Poitras, portfolio manager of the Income Fund, strives to limit
investment risk by carefully selecting a portfolio consisting primarily of
investment grade corporate debt securities--rated Baa or higher by Moody's and
BBB or higher by Standard & Poor's. In addition, the Fund may utilize other
investments, such as government securities and money market instruments,
depending on both timing and strategies that coincide with the market.
Flexibility is the key to our success, and is always employed with the
objective of appreciation of your capital investment.
SERVICES AVAILABLE TO SHAREHOLDERS
IRA or Retirement Plans
Shares of the Wayne Hummer Income Fund are a suitable addition to your IRA or
pension plan. Federal income tax on money you invest this way is deferred
until you begin withdrawals, normally after retirement. Just contact Wayne
Hummer Investments LLC for complete information.
Dividend and Capital Gains Reinvestment
The Wayne Hummer Income Fund also will reinvest dividends and capital gains
distributions automatically in additional shares for you. When investing over
long time periods, the reinvestment of earnings can cause notable increases in
returns because you earn interest on interest. Compounded over many years,
this can add up to a significant sum.
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
monthly. Your bank can send money from your bank account to your Wayne Hummer
Income Fund account. Request an application with full details from your Wayne
Hummer Investment Executive.
Payroll Direct Deposit Plan
You may authorize your employer to deduct a specified amount from your payroll
check to purchase additional shares of the Wayne Hummer Income Fund. Complete
details are available from the Fund or your Wayne Hummer Investment Executive.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1996 YEAR ENDED
ASSETS (UNAUDITED) MARCH 31, 1996
--------- -------------
<S> <C> <C>
Investments, at value (Cost: $23,948,350 and
$24,234,978, respectively)...... $23,597,052 $24,072,285
Other assets:
Cash................................................................ 10,012 49,459
Interest receivable................................................. 482,807 497,577
Receivable for investments sold..................................... -- 827,708
Deferred organizational costs (net of accumulated
amortization of $46,000 and $40,000, respectively) 14,000 20,000
Prepaid expenses.................................................... 3,004 5,119
-------- --------
Total assets............................................ 24,106,875 25,472,148
LIABILITIES AND NET ASSETS
Organizational costs payable.......................................... 17,000 23,000
Dividends payable..................................................... 31,356 21,956
Due to Wayne Hummer Management Company................................ 9,825 10,820
Accounts payable...................................................... 17,264 17,761
-------- --------
Total liabilities....................................... 75,445 73,537
-------- --------
Net assets applicable to 1,624,563 and 1,698,924 Shares
outstanding, no par value, equivalent to $14.79 and $14.95
per Share, respectively.............................................. $24,031,430 $25,398,611
======== ========
ANALYSIS OF NET ASSETS
Excess of amounts received from issuance of Shares over
amounts paid on redemptions of Shareson account of capital........... $25,392,604 $26,493,569
Unrealized depreciation of investments................................ (351,298) (162,693)
Accumulated net realized loss on sales of investments................. (1,009,876) (932,265)
-------- --------
Net assets applicable to Shares outstanding........................... $24,031,430 $25,398,611
======== ========
THE PRICING OF SHARES
Net asset value, offering and redemption price per
Share ($24,031,430 / 1,624,563 Shares outstanding
and $25,398,611 / 1,698,924 Shares outstanding, respectively)....... $14.79 $14.95
======== ========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1996 MARCH 31,
INVESTMENT INCOME: (UNAUDITED) 1996
--------- ---------
<S> <C> <C>
Interest................................................................... $ 904,720 $2,025,925
EXPENSES:
Management fee............................................................. 61,554 131,344
Transfer agent fees........................................................ 13,616 29,700
Professional fees.......................................................... 13,500 22,689
Portfolio accounting fees.................................................. 9,231 19,588
Amortization of organization costs......................................... 6,000 12,000
Custodian fees............................................................. 4,800 9,900
Trustee fees............................................................... 3,900 3,851
Printing and reporting fees................................................ 3,300 7,354
Other...................................................................... 8,439 3,498
------- --------
Total expenses................................................. 124,340 239,924
------- --------
Net investment income........................................................ 780,380 1,786,001
------- --------
Net realized loss on sales of investments.................................... (84,841) (63,196)
Net change in unrealized depreciation........................................ (188,605) 522,725
------- --------
Net gain (loss) on investments............................................... (273,446) 459,529
------- --------
Net increase in net assets resulting from operations......................... $506,934 $2,245,530
======= ========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1996 MARCH 31,
OPERATIONS: (UNAUDITED) 1996
--------- ---------
<S> <C> <C>
Net investment income............................................ $780,380 $1,786,001
Net realized loss on sales of investments........................ (84,841) (63,196)
Net change in unrealized depreciation............................ (188,605) 522,725
--------- ---------
Net increase in net assets resulting from operations............... 506,934 2,245,530
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income............................................ (773,150) (1,774,546)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares sold........................................ 1,045,035 3,761,780
Shares issued upon reinvestment of dividends .................... 571,102 1,319,391
--------- ---------
1,616,137 5,081,171
Less payments for Shares redeemed................................ 2,717,102 6,505,751
--------- ---------
Decrease from Capital Share transactions........................... (1,100,965) (1,424,580)
--------- ---------
Total decrease in net assets....................................... (1,367,181) (953,596)
NET ASSETS:
Beginning of period.............................................. 25,398,611 26,352,207
--------- ---------
End of period ................................................... $24,031,430 $25,398,611
========= =========
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(For a Share outstanding throughout each period)
SIX MONTHS ENDED DECEMBER 1, 1992
SEPTEMBER 30, 1996 YEAR ENDED MARCH 31, THROUGH
UNAUDITED 1996 1995 1994 MARCH 31, 1993(a)
--------- ---- ---- ---- ------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD....... $14.95 $14.69 $15.10 $15.41 $15.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................... 0.47 1.02 0.99 0.95 0.25
Net realized and unrealized gains (losses)
on securities (0.16) 0.26 (0.42) (0.26) 0.41
------- ------- ------ ------ ------
Total from investment operations .......... 0.31 1.28 0.57 0.69 0.66
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.47) (1.02) (0.98) (0.95) (0.25)
Dividends from net realized gains on securities 0.00 0.00 0.00(d) (0.05) 0.00
------- ------- ------ ------ ------
Total distributions.................. (0.47) (1.02) (0.98) (1.00) (0.25)
------- ------- ------ ------ ------
NET ASSET VALUE, END OF PERIOD............. $ 14.79 $ 14.95 $ 14.69 $ 15.10 $ 15.41
======== ======== ======= ======= =======
TOTAL RETURN............................... 2.05% 8.79% 4.16% 4.42% 4.31%
RATIOS AND SUPPLEMENTARY DATA:
Net assets, end of period (000's)........ $24,031 $25,398 $26,352 $33,652 $19,135
Ratio of expenses to average net assets.. 1.01%(c) 0.91% 0.94% 1.13% 1.39%(b)(c)
Ratio of net investment income to average
net assets 6.34%(c) 6.80% 6.70% 6.14% 5.58 (b)(c)
Portfolio turnover rate.................. 35%(c) 46% 32% 86% 141%(c)
<FN>
NOTES TO FINANCIAL HIGHLIGHTS:
a.) Commencement of operations was December 1, 1992.
b.) During the fiscal period ended March 31, 1993, expenses in excess of the
expense limitation were reimbursable from the Investment Adviser. Absent the
expense limitation, the ratio of expenses to average net would have increased,
and the ratio of net investment income to average net assets would have
increased, and the ratio of net investment income to average net assets would
have decreased by 0.10%.
c.) Determined on an annualized basis.
d.) Less than $.01 per share.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
September30, 1996
PRINCIPAL
CORPORATE OBLIGATIONS 61.5% AMOUNT VALUE
--------- ---------
<S> <C> <C>
AIRLINES 4.3%
- --------
United Air Lines, Inc., 9.760%, due 05/27/06 $ 960,248 $1,032,295
BANKS & FINANCE 5.6%
- ---------------
Citicorp, 9.375%, due 03/01/16 506,000 527,358
Ford Motor Credit Company, 6.125%,
due 01/09/06 500,000 458,375
Norwest Corporation, 7.650%, due 03/15/05 360,000 369,889
---------
1,355,622
BROKERAGE 2.0%
- ---------
Merrill Lynch & Co., Inc., 5.586%, due 05/19/03 (b) 500,000 475,000
MACHINERY 6.9%
- ---------
Caterpiller Inc., 9.750%, due 06/01/19 1,000,000 1,106,390
Parker-Hannifin Corporation, 9.750%,
due 02/15/21 480,000 542,506
---------
1,648,896
OIL & GAS 5.7%
- ---------
The Coastal Corporation, 10.250%,
due 10/15/04 1,000,000 1,165,820
Pennzoil Company, 10.250%, due 11/01/05 186,000 214,895
---------
1,380,715
PAPER & FOREST PRODUCTS 6.2%
- -----------------------
Boise Cascade Corporation, 9.875%,
due 02/15/01 1,000,000 1,062,890
Georgia Pacific Corporation, 9.750%,
due 01/15/18 415,000 433,741
---------
1,496,631
RETAIL 5.1%
- ------
May Department Stores Company, 9.875%,
due 06/01/17 655,000 690,521
Penney (J.C.) Company, Inc., 9.450%, due 07/15/02 500,000 536,750
---------
1,227,271
TELECOMMUNICATIONS 4.2%
- ------------------
Mountain States Telephone & Telegraph Co.,
5.500%, due 06/01/05 269,000 236,037
NYNEX Corporation, 9.550%, due 05/01/10 690,238 766,144
---------
1,002,181
UTILITIES 9.6%
- ---------
Commonwealth Edison Company
8.125%, due 01/15/07 500,000 513,125
8.875%, due 10/01/21 485,000 494,375
Consolidated Natural Gas Company
8.625%, due 12/01/11 1,250,000 1,288,662
---------
2,296,162
PRINCIPAL
AMOUNT VALUE
--------- ---------
<CAPTION>
<S> <C> <C>
MISCELLANEOUS 11.9%
- -------------
Browning-Ferris Industries, Inc., 6.375%,
due 01/15/08 $ 500,000 $ 464,985
Canadian Pacific Limited, 8.850%,
due 06/01/22 500,000 529,335
Champion International, 6.400%, due 02/15/26 500,000 463,740
CBI Industries, Inc., 6.250%, due 06/30/00 500,000 489,050
Eastman Kodak Company, 9.750%, due 10/01/04 325,000 379,177
Inco Ltd., Convertible Debenture, 7.750%,
due 03/15/16 500,000 523,125
---------
2,849,412
---------
TOTAL CORPORATE OBLIGATIONS (Cost: $14,975,847) 14,764,185
MUNICIPALITY-TAXABLE 1.1%
Virginia State Housing Development, 7.950%,
due 05/01/13 (Cost: $253,926) 250,000 267,583
MORTGAGE-BACKED SECURITIES 18.5%
COLLATERALIZED MORTGAGE OBLIGATIONS 13.0%
- -----------------------------------
Federal Home Loan Mortgage Corporation 10.0%
7.500%, due 11/15/08 500,000 507,005
7.500%, due 02/15/20 400,000 397,164
8.000%, due 03/15/21 1,000,000 997,740
8.000%, due 04/15/22 500,000 508,175
---------
2,410,084
Federal National Mortgage Association 3.0%
8.000%, due 02/25/07 500,000 523,715
8.500%, due 06/25/21 200,000 208,896
---------
732,611
FEDERAL NATIONAL MORTGAGE ASSOCIATION 4.3%
- -------------------------------------
11.250%, due 04/01/01 123,261 130,890
10.750%, due 09/01/15 150,824 165,375
10.500%, due 01/01/16 87,615 95,529
10.500%, due 06/01/19 303,984 334,139
9.000%, due 12/01/19 94,444 98,344
8.000%, due 12/01/22 208,611 210,349
---------
1,034,626
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 1.2%
- ----------------------------------------
9.000%, due 11/15/01 169,364 176,689
8.500%, due 09/20/16 68,384 69,773
8.000%, due 01/20/17 31,874 32,010
---------
278,472
---------
TOTAL MORTGAGE-BACKED SECURITIES (Cost: $4,487,297) 4,455,793
<PAGE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ---------
U.S. GOVERNMENT AND AGENCY
ISSUES 17.1%
Federal National Mortgage Association
6.820%, due 08/23/05 $ 500,000 $ 496,700
U.S. Treasury Note, 8.500%, due 11/15/00 1,310,000 1,406,822
U.S. Treasury Note, 6.500%, due 05/15/05 1,875,000 1,851,769
U.S. Treasury Strips, 0%, due 02/15/21 2,000,000 354,200
---------
TOTAL U.S. GOVERNMENT AND AGENCY
ISSUES (Cost: $4,231,280) 4,109,491
---------
TOTAL INVESTMENTS (Cost: $23,948,350) (98.2%) 23,597,052
CASH AND OTHER ASSETS, LESS LIABILITIES (1.8%) 434,378
---------
NET ASSETS (100.0%) $24,031,430
=========
<FN>
NOTE TO PORTFOLIO OF INVESTMENTS:
(a) Based on the cost of investments of $23,948,350 for federal income tax
purposes at September 30, 1996, the aggregate gross unrealized appreciation
was $121,149, the aggregate gross unrealized depreciation was $472,447, and
the net unrealized appreciation of investments was $351,298.
(b) Floating rate security. Rate shown is the interest rate at September 30,
1996.
</FN>
</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 Income Fund (the "Fund") and the Wayne Hummer Growth Fund,
each operating as a separate mutual fund. The Fund commenced investment
operations on December 1, 1992, and may issue an unlimited number of full
and fractional units of beneficial interest (Shares) without par value.
1. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
Fixed income securities are valued by using market quotations, or
independent pricing services that use prices provided by market makers or
estimates of market values obtained from yield data relating to instruments
or securities with similar characteristics. Other securities for which no
market quotations are available are valued at fair value as determined in
good faith by the Board of Trustees. Debt securities having a remaining
maturity of less than 60 days are valued at cost (or, if purchased more
than 60 days prior to maturity, the value on the 61st day prior to
maturity) adjusted for amortization of premiums and accretion of discounts.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on the trade date. Interest
income is determined on an accrual basis, adjusted for amortization of
premiums and accretion of discounts. Realized gains and losses from
security transactions are reported on an identified cost basis.
DEFERRED ORGANIZATIONAL COSTS
Certain organizational costs are reimbursable by the Fund to Wayne Hummer
Management Company, the Fund's Investment Adviser. The costs are being
amortized on the straight-line method and repaid quarterly over a five-year
period.
<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.
Dividends from net investment income are declared and distributed monthly.
Capital gains dividends, if any, are paid at least annually. Dividends will
be reinvested in additional Shares unless a Shareholder requests payment
in cash.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences primarily relate to differing treatments for
mortgage-backed securities.
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.
The accumulated net realized loss on sales of investments for federal income
tax purposes at March 31, 1996, the Funds most recent fiscal year end,
amounting to $932,265, is available to offset future capital gains. If not
applied, $880,524 of the loss carry forward expires in 2003, and $51,741
expires in 2004.
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 Voting Members of Wayne Hummer Investments LLC, formerly Wayne
Hummer & Co., ("Distributor and Shareholder Service Agent"). (Wayne Hummer
& Co., an Illinois limited partnership, was reorganized as a Delaware
limited liability company effective April 1, 1996.) For advisory and
management services and facilities furnished, the Fund pays fees of .50 of
1% of the first $100 million of average daily net assets, .40 of 1% of the
next $150 million and .30 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, 1996, and the year ended March
31, 1996, the Fund incurred management fees of $61,554 and $131,344,
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 Investments LLC 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 Voting Members of the Distributor and Shareholder
Service Agent. During the period ended September 30, 1996, and the year
ended March 31, 1996, the Fund made no direct payments to its officers and
incurred trustee fees for its unaffiliated trustees of $3,900 and $3,851,
respectively.
5. INVESTMENT TRANSACTIONS
Investment transactions (excluding money market instruments) are as follows:
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1996 MARCH 31, 1966
----------------- -------------
Purchases $4,483,753 $11,705,168
Proceeds from sales $3,988,127 $13,000,951
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:
SIX MONTHS
ENDED YEAR ENDED
SEPTEMBER 30, 1996 MARCH 31, 1996
----------------- -------------
Shares sold 70,707 247,976
Shares issued upon reinvestment
of dividends 38,704 87,237
----------- -----------
109,411 335,213
Shares redeemed (183,772) (430,420)
----------- -----------
Net decrease in Shares outstanding (74,361) (95,207)
=========== ===========
<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 Investments LLC
300 South Wacker Drive
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)
<PAGE>
WAYNE HUMMER
INCOME FUND
300 South Wacker Drive
Chicago, IL 60606-6607
WAYNE
HUMMER
INCOME
FUND
Semi-Annual
Financial
Statements
September 30, 1996
(Unaudited)
