WAYNE
HUMMER
GROWTH
FUND
Semi-Annual
Financial Statements
September 30, 1996
(Unaudited)
<PAGE>
WAYNE
HUMMER
GROWTH
FUND
Dear Fellow Shareholder:
This report details the investment portfolio of the Wayne Hummer Growth
Fund on September 30, 1996, the end of the Fund's second quarter of fiscal
1996. The net asset value of a Fund share increased 7.3% from $24.66 on
September 30, 1995 to $26.45 on September 30, 1996. If dividends, as well as
distributions from capital gains, were reinvested during this period, the
increase was 13.2%. For the first half of this fiscal year the increase was
3.7%. The Fund's Board of Trustees declared a $.06 ordinary dividend to
shareholders payable on July 15, 1996.
Although this is my first shareholder letter as President of the Wayne Hummer
Investment Trust, I have been on the scene at Hummer for nearly the past
decade of my twenty-eight years in the investment business. It has been a
distinct pleasure and privilege to have been associated with Alan Bird in the
management of the Fund during my years here. Alan was ever the consummate
professional. We all wish Alan the best of everything as he and his wife,
Beth, settle into their new permanent surroundings in Galena, Illinois.
. . . But, then, the market goes on. And on and on. The aging bull market
passed its sixth anniversary earlier this month. The Dow Jones Industrial
Average, perhaps the most popular gauge of the market, has risen over 150%
during this span, without having experienced a single 10% decline. The Dow has
never before in its 100-year history moved up so much without such an
intervening interruption. The Dow charted new waters on Columbus Day, setting
sail beyond the 6000 marker for the first time. Many Growth Fund shareholders
may have begun to wonder how high is up for this market.
This being an election year, many market participants are engaged in the usual
attempt of divining the future course of the market by assessing the likely
post election political landscape. History offers us a number of intriguing
correlations between politics and the fortunes of the stock market.
So far, election year 1996 is on track to add validity to the tendency of
presidential election years to be accompanied by stock market strength over
the past 100 years. If so, this would be the twentieth of the past twenty-five
presidential election years showing stock market gains, which have averaged
9.9% during those years to this point. Also, over this 100 years of history,
in nine of eleven elections in which an incumbent has won reelection, the
market has risen an above average of 11% in those years. Furthermore, using
more recent history as a guide, since 1952 the stock market has never declined
in the last half of a presidential election year. In fact, accord ing to Yale
Hirsch, author of the Stock Traders Almanac, during the period from May 1
through year-end of these election years, the Standard and Poor's Composite
Stock Index has gone up an aver age of 8%. Some might conclude, therefore,
that stock investments are a safe place to be, at least through the end of the
year. But what of the longer term implications of the election?
By the time you read this letter, the election outcome will have been
determined. Although the conventional wisdom, that investors favor Republican
administrations, holds up for the short period following elections, the longer
term results depict a different tale. Since 1900, with the Democrats
controlling the White House the Dow has gained 6.3% on average compared to 4%
gains during Republican administrations.
But, wait! Everyone knows that inflation has been much lower under Republican
presidents. Ned Davis Research has adjusted stock market returns for inflation
since 1900 and determined that real returns have been higher during Republican
administrations, averaging 2.3% compared to 1.5% for Democrats. This is not to
say that there haven't been occasions when a Democrat has occupied the White
House and enjoyed low inflation and a rising stock market. One might recall
the Kennedy/Johnson administrations. In fact, the Dow Jones has registered
anything but unhappiness with our current incumbent, posting a real average
annual gain of 15%, or the highest average gain of any previous president this
century.
<PAGE>
But, wait! The Republican Party swept Congress in 1994, and Republicans would
argue that the bulk of the market's gains during President Clinton's term was
because of expectations that the Congress would enact legislation conducive
to long-term economic growth.
Given, then, that the market's strength has endured during the period when the
polls have pointed strongly to a Clinton re-election, the more telling contest
may likely be the battle for control of Congress. On this score, and again
citing real returns calculated by Ned Davis Research, the best real market
returns (averaging 2.4%) occurred during years with a Republican President and
Republican Congress. Close behind these returns were those experienced with a
Democratic President and a Democratic Congress (averaging 2.1%), which tied
the results under a Republican President with a Democratic Congress. The worst
combination was a Democratic President combined with a Republican Congress
(averaging -2.9%). However, this last combination prevailed during only five
of the ninety five years covered by the analysis. Otherwise, it is apparent
that these outcomes are not significantly different, on average, but there is
a wide variation among individual observations.
On balance, of the four years in the election cycle, the post-election year
returns have been the lowest, followed by mid-term election year returns. The
best has been the pre-election year followed by the election year returns.
Each of the four years has produced a positive average result. Once again, the
variation among individual observations is wide.
You may have concluded by now that there is little to be concluded about the
prospect for stocks in the context of any given election outcome. If so, you
are correct. Barring recessions and wars, stocks have done well, regardless of
election outcomes. Longer-term, economic variables are the greatest
determinants of stock prices. Longer-term, stocks have done very well indeed.
In his book, "Stocks for the Long Run," Professor Jeremy Siegel of the Wharton
School measured the returns of stocks, bonds, T-bills and gold from 1802
through 1995. Stocks produced the overwhelmingly superior return after
inflation, averaging 6.8% over the life of the study compared with 3.5% for
bonds, 2.9% for T-bills, and 0.1% for gold.
Investing in good companies for the long term is a proven formula for
investment success, notwithstanding the vagaries of temporary dislocations.
The growing value of a business over time is driven by its earnings growth.
The prevailing economic environment, encompassing trends in inflation,
taxation and interest rates, determines the values that the market places on
the earnings streams of businesses.
But, then, that's another set of forecasts........
As always, we are pleased to be a part of your long-term investment planning.
Sincerely,
/s/ Thomas J. Rowland
Thomas J. Rowland, CFA
President
Wayne Hummer Investment Trust
October 25, 1996
<PAGE>
<TABLE>
<CAPTION>
WAYNE HUMMER GROWTH FUND VS. RUSSELL MID-CAP AND THE S&P 500
Wayne Hummer Russell
Growth Fund S&P 500 Mid-Cap
<S> <C> <C> <C>
1986 10000 10000 10000
$10,652.06 $10,557.00 $10,297.77
$12,948.66 $12,813.03 $12,374.58
$13,320.71 $13,456.25 $12,598.96
1987 $14,289.03 $14,344.36 $13,342.17
$11,640.25 $11,116.88 $10,321.36
$12,177.91 $11,750.54 $11,582.15
$12,571.48 $12,514.32 $12,422.37
1988 $12,350.10 $12,561.88 $12,307.13
$12,456.50 $12,945.02 $12,366.20
$13,100.80 $13,858.93 $13,288.66
$13,893.29 $15,064.66 $14,503.52
1989 $15,078.29 $16,678.09 $15,885.10
$15,449.45 $17,018.32 $15,612.70
$15,573.90 $16,509.47 $15,009.60
$16,458.54 $17,523.15 $15,565.38
1990 $14,480.86 $15,122.48 $12,479.28
$16,225.24 $16,463.84 $13,819.73
$18,293.96 $18,867.57 $16,649.36
$18,606.30 $18,784.55 $16,744.01
1991 $19,327.22 $19,797.04 $17,984.73
$20,905.33 $21,456.03 $19,564.06
$21,063.85 $20,919.63 $19,868.31
$20,912.96 $21,294.09 $19,826.95
1992 $22,170.92 $21,986.15 $21,572.34
$23,073.33 $23,100.84 $23,838.07
$23,158.62 $24,098.34 $25,133.92
$22,860.23 $24,197.14 $25,530.24
1993 $22,958.18 $24,816.59 $26,896.72
$23,743.00 $25,561.09 $27,247.19
$22,999.87 $24,587.21 $26,441.62
$22,723.14 $24,670.81 $25,870.48
1994 $23,758.00 $25,884.61 $27,341.99
$23,681.76 $25,879.43 $26,676.22
$26,000.46 $28,397.50 $29,452.67
$26,667.92 $31,078.22 $31,917.85
1995 $27,665.38 $33,552.05 $34,747.69
$29,558.25 $35,568.53 $35,867.64
$30,199.58 $37,477.28 $38,026.16
$30,750.68 $39,137.52 $39,097.74
1996 $31,310.96 $40,112.05 $40,322.28
For the ten year Period Ended 9/30/96
</TABLE>
<TABLE>
<CAPTION>
WAYNE HUMMER GROWTH FUND RUSSELL MID-CAP S&P 500
- ---------------------------------- -------------------------------- ---------------------------------
PERIOD GROWTH TOTAL RETURN PERIOD GROWTH TOTAL RETURN PERIOD GROWTH TOTAL RETURN
ENDED OF CUMU- AVERAGE ENDED OF CUMU- AVERAGE ENDED OF CUMU- AVERAGE
9/30/96 $10,000 LATIVE ANNUAL 9/30/96 $10,000 LATIVE ANNUAL 9/30/96 $10,000 LATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year $11,318 13.18% 13.18% 1 Year $11,604 16.04% 16.04% 1 Year $12,031 20.31% 20.31%
5 Year $16,200 62.00% 10.13% 5 Year $22,420 124.20% 17.52% 5 Year $20,300 103.00% 15.21%
10 Year $31,311 213.11% 12.09% 10 Year $40,322 303.22% 14.96% 10 Year $40,346 303.46% 14.97%
</TABLE>
<TABLE>
<CAPTION>
WAYNE HUMMER GROWTH FUND
VALUE OF INITIAL $10,000 INVESTMENT
Net Value of Value of
Asset Reinvested Reinvested
Value Dividends Capital Gains
<S> <C> <C> <C>
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
30-Jun-95 $23,840 $6,565 $6,481
30-Sep-95 $24,660 $6,902 $6,704
31-Dec-95 1995 $25,810 $7,482 $7,592
31-Mar-96 $26,370 $7,644 $7,757
30-Jun-96 $26,040 $7,693 $8,800
30-Sep-96 $26,450 $7,919 $8,939
$43,308 - Total of Net Asset Value, Reinvested Dividends
and Reinvested Capital Gains
For the Period 12/30/83 thru 9/30/96
</TABLE>
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>
FUND OVERVIEW
ESTABLISHED IN 1983, THE PRIMARY OBJECTIVE OF THE WAYNE HUMMER GROWTH FUND IS
LONG-TERM CAPITAL GROWTH. CURRENT INCOME IS A SECONDARY BUT AN IMPORTANT
OBJECTIVE.
Tom Rowland, portfolio manager and president of Wayne Hummer Management
Company, believes in investing in companies that have long-term earning
potential. Tom's investment philosophy incorporates both "value" and
"fundamental" elements. The stocks he chooses generally are companies that
occupy a niche and/or possess a uniqueness that provides them with a strong
market position and pricing power; provide a high and consistent return on
equity and an ability to be self-financing; carry relatively low debt levels
as a percentage of total capital; and have managements with vested interests
in their company's future success through stock ownership.
SERVICES AVAILABLE TO SHAREHOLDERS
IRA or Retirement Plans
Shares of the Wayne Hummer Growth 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 your
Wayne Hummer Investment Executive for complete information.
Dividend and Capital Gains Reinvestment
The Wayne Hummer Growth 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 tremendous 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
Growth 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 Growth Fund. Complete
details are available from the Fund or your Wayne Hummer Investment Executive.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, YEAR ENDED
1996 MARCH 31,
ASSETS (UNAUDITED) 1996
--------- ---------
<S> <C> <C>
Investments, at value (Cost: $65,798,656 and
$69,427,222, respectively)........................................ $102,184,353 $103,526,521
Cash............................................................... 245,678 6,136
Dividends receivable............................................... 161,961 158,087
Prepaid expenses................................................... 1,973 8,186
Insurance deposit.................................................. 3,845 3,846
Receivable for Fund Shares sold.................................... 1,100 --
--------- ---------
Total assets......................................... 102,598,910 103,702,776
LIABILITIES AND NET ASSETS
Payable for investments purchased.................................. 862,510 975,000
Due to Wayne Hummer Management Company............................. 65,156 69,115
Accounts payable................................................... 40,625 50,451
--------- ---------
Total liabilities.................................... 968,291 1,094,566
--------- ---------
Net assets applicable to 3,842,730 and 3,891,462
Shares outstanding, no par value, equivalent to $26.45
and $26.37 per Share, respectively................................ $101,630,619 $102,608,210
========= =========
ANALYSIS OF NET ASSETS
Excess of amounts received from issuance of Shares over
amounts paid on redemptions of Shares on account of capital....... $ 64,181,335 $ 65,445,667
Unrealized appreciation of investments............................. 36,385,697 34,099,299
Undistributed net realized gain on sales of investments............ 774,182 2,738,109
Undistributed net investment income................................ 289,405 325,135
--------- ---------
Net assets applicable to Shares outstanding........................ $101,630,619 $102,608,210
========= =========
THE PRICING OF SHARES
Net asset value, offering and redemption price per Share
($101,630,619 4 3,842,730 Shares outstanding
and $102,608,210 4 3,891,462 Shares outstanding, respectively).... $ 26.45 $ 26.37
========= =========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED
SEPTEMBER 30, YEAR ENDED
1996 MARCH 31,
INVESTMENT INCOME: (UNAUDITED) 1996
--------- ---------
<S> <C> <C>
Dividends........................................................ $ 974,378 $ 1,946,535
Interest......................................................... 85,378 357,959
--------- ---------
Total investment income.............................. 1,059,756 2,304,494
EXPENSES:
Management fee................................................... 403,096 785,739
Transfer agent fees.............................................. 28,400 71,500
Professional fees ............................................... 19,400 48,900
Custodian fees................................................... 10,400 24,100
Registration costs............................................... 4,793 26,138
Trustee fees..................................................... 10,500 20,400
Portfolio accounting fees........................................ 8,533 12,099
Other............................................................ 13,978 51,691
--------- ---------
Total expenses....................................... 499,100 1,040,567
--------- ---------
Net investment income.............................................. 560,656 1,263,927
--------- ---------
Net realized gain on sales of investments.......................... 774,182 4,173,633
Net increase in unrealized appreciation ........................... 2,286,398 9,280,681
--------- ---------
Net gain on investments............................................ 3,060,580 13,454,314
--------- ---------
Net increase in net assets resulting from operations............... $3,621,236 $14,718,241
========= =========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
SEPTEMBER 30, YEAR ENDED
1996 MARCH 31,
OPERATIONS: (UNAUDITED) 1996
--------- ---------
<S> <C> <C>
Net investment income............................................. $ 560,656 $ 1,263,927
Net realized gain on sales of investments......................... 774,182 4,173,633
Net increase in unrealized appreciation........................... 2,286,398 9,280,681
---------- ----------
Net increase in net assets resulting from operations................ 3,621,236 14,718,241
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income............................................. (596,386) (1,237,815)
Net realized gain on investments.................................. (2,738,109) (1,872,634)
---------- ----------
Total dividends to Shareholders..................................... (3,334,495) (3,110,449)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares sold......................................... 3,045,629 6,451,170
Shares issued upon reinvestment of dividends ..................... 3,228,250 2,991,110
---------- ----------
6,273,879 9,442,280
Less payments for Shares redeemed 7,538,211 13,211,590
---------- ----------
Decrease from Capital Share transactions............................ (1,264,332) (3,769,310)
Total increase (decrease) in net assets............................. (977,591) 7,838,482
NET ASSETS:
Beginning of period .............................................. 102,608,210 94,769,728
---------- ----------
End of period (including undistributed net investment
income of $289,405 and $325,135, respectively) ................. $101,630,619 $102,608,210
========== ==========
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(For a Share outstanding throughout each period)
SIX MONTHS ENDED
SEPTEMBER 30,
1996 YEAR ENDED MARCH 31,
(UNAUDITED) 1996 1995 1994 1993
----------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD..... $ 26.37 $ 23.43 $ 21.23 $ 21.72 $ 20.17
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................. 0.15 0.32 0.32 0.28 0.28
Net realized and unrealized gains (losses)
on securities........................ 0.79 3.41 2.40 (0.42) 1.70
------- ------- ------ ------ ------
Total from investment operations......... 0.94 3.73 2.72 (0.14) 1.98
LESS DISTRIBUTIONS:
Dividends from net investment income... (0.15) (0.31) (0.31) (0.28) (0.29)
Distributions from net realized gains on securities (0.71) (0.48) (0.21) (0.07) (0.14)
------- ------- ------ ------ ------
Total distributions...................... (0.86) (0.79) (0.52) (0.35) (0.43)
------- ------- ------ ------ ------
NET ASSET VALUE, END OF PERIOD........... $ 26.45 $ 26.37 $ 23.43 $ 21.23 $ 21.72
======= ======= ====== ====== ======
TOTAL RETURN............................. 3.68% 16.15% 13.04% (0.69%) 9.94%
RATIOS AND SUPPLEMENTARY DATA:
Net assets, end of period (000's)...... $101,630 $102,608 $94,770 $92,391 $93,198
Ratio of expenses to average net assets 0.99%(a) 1.06% 1.07% 1.07% 1.12%
Ratio of net investment income to average net assets 1.11%(a) 1.29% 1.44% 1.33% 1.41%
Portfolio turnover rate ............... 7%(a) 6% 3% 2% 1%
<FN>
(a) Determined on an annualized basis.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUMBER
OF
COMMON STOCKS 98.9% SHARES VALUE
--------- ---------
<S> <C> <C>
AUTO & MACHINERY 7.3%
- ----------------
Echlin Incorporated 35,000 $ 1,098,125
Illinois Tool Works, Inc. 65,000 4,688,125
Regal-Beloit Corporation 100,000 1,662,500
---------
7,448,750
BANKS 8.9%
- -----
First of America Bank Corporation 75,000 3,946,875
Northern Trust Corporation 60,000 3,945,000
UMB Financial Corp. 31,021 1,178,798
---------
9,070,673
CHEMICAL 11.8%
- --------
Avery Dennison Corporation 35,000 1,942,500
Morton International, Inc. 120,000 4,770,000
Nalco Chemical Company 30,000 1,087,500
RPM, Inc. 100,000 1,650,000
Schulman (A.), Inc. 110,000 2,557,500
---------
12,007,500
ELECTRICAL/ELECTRONICS 12.9%
- ----------------------
AMP Incorporated 50,000 1,937,500
Applied Materials, Inc. (c) 50,000 1,381,250
Emerson Electric Co. 55,000 4,956,875
QUALCOMM Incorporated (c) 40,000 1,700,000
Motorola, Inc. 30,000 1,548,750
Thomas & Betts Corporation 40,000 1,640,000
---------
13,164,375
FOOD, BEVERAGE & HOUSEHOLD 9.9%
- --------------------------
McCormick & Company, Incorporated 100,000 2,337,500
PepsiCo, Inc. 40,000 1,130,000
Rubbermaid Incorporated 100,000 2,450,000
Sara Lee Corporation 80,000 2,860,000
Smucker (The J. M.) Company Class B 80,000 1,240,000
---------
10,017,500
HEALTH CARE & PHARMACEUTICALS 11.8%
- -----------------------------
Abbott Laboratories 40,000 1,970,000
Bard (C.R.) Inc. 60,000 1,867,500
MedPartners, Inc. (c) 43,862 997,860
Patterson Dental Company (c) 50,000 1,337,500
R. P. Scherer Corporation (c) 85,000 4,143,750
STERIS Corporation, Inc. (c) 23,000 779,125
Tecnol Medical Products, Inc. (c) 60,000 862,500
---------
11,958,235
NUMBER
OF
SHARES VALUE
--------- ---------
<CAPTION>
<S> <C> <C>
INSURANCE 9.0%
- ---------
AON Corporation 30,000 $ 1,627,500
Cincinnati Financial Corporation 49,612 2,840,287
Ohio Casualty Corporation 50,000 1,700,000
Old Republic International Corporation 120,000 2,970,000
----------
9,137,787
OIL & GAS 2.6%
- ---------
Burlington Resources, Inc. 60,000 2,662,500
PAPER & FOREST PRODUCTS 7.4%
- -----------------------
Albany International Corp. Class A 100,000 2,162,500
Consolidated Papers, Inc. 55,000 2,860,000
Sonoco Products Company 89,250 2,454,375
----------
7,476,875
PUBLISHING & MEDIA 3.5%
- ------------------
Interpublic Group of Companies, Inc. 75,000 3,543,750
SERVICES 3.3%
- --------
H & R Block, Inc. 60,000 1,785,000
Kelly Services, Inc. Class A 30,000 851,250
Olsten Corporation 30,000 746,250
----------
3,382,500
MISCELLANEOUS 10.5%
- -------------
Arbor Drugs, Inc. 60,000 1,305,000
Bacou USA, Inc. (c) 65,000 1,105,000
Boeing Company 30,000 2,835,000
Calgon Carbon Corporation 65,000 674,375
Duracell International Inc. 10,000 641,250
The Gap, Inc. 25,000 721,875
Pall Corporation 120,000 3,390,000
----------
10,672,500
----------
Total Common Stocks (Cost: $64,157,248) $100,542,945
<PAGE>
<CAPTION>
PORTFOLIO OF INVESTMENTS (CONTINUED)
MATURITY DATE PRINCIPAL
SHORT-TERM INVESTMENTS 1.6% RATE % (1996) AMOUNT VALUE
- --------------------------------- ------ --------- ------------ --------
<S> <C> <C> <C> <C>
United States Treasury Bill 5.050 10/31 $ 119,000 $ 118,508
United States Treasury Bill 5.158 11/07 532,000 529,243
General Electric Capital Corp. 5.449 11/25 484,000 480,059
United States Treasury Bill 5.235 12/05 100,000 99,077
United States Treasury Bill 5.272 12/19 405,000 400,432
Other 5.500 2/28/97 14,089 14,089
----------
Total Short-Term Investments (Cost: $1,641,408) 1,641,408
TOTAL INVESTMENTS (Cost: $65,798,656) (100.5%) 102,184,353
CASH AND OTHER ASSETS, LESS LIABILITIES ( -0.5%) (553,734)
----------
NET ASSETS (100.0%) $101,630,619
==========
<FN>
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 $65,798,656 for federal income tax
purposes at September 30, 1996, the aggregate gross unrealized
appreciation was $38,075,254, the aggregate gross unrealized depreciation
was $1,689,557 and the net unrealized appreciation of investments was
$36,385,697.
(c) Non-income producing security.
</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 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>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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
21, 1996, an ordinary income dividend of $.07 per Share was declared,
payable October 22, 1996, to Shareholders of record on October 21, 1996.
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 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 .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, 1996, and
the year ended March 31, 1996, the Fund incurred management fees of
$403,096 and $785,739, 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 $10,500 and $20,400,
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 $4,492,075 $ 5,919,348
Proceeds from sales $3,611,698 $13,417,647
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 118,378 260,713
Shares issued upon reinvestment of
dividends 126,091 120,173
----------- -----------
244,469 380,886
Shares redeemed (293,201) (534,552)
----------- -----------
Net decrease in Shares outstanding (48,732) (153,666)
=========== ===========
<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
GROWTH FUND
300 South Wacker Drive
Chicago, IL 60606-6607
WAYNE
HUMMER
GROWTH
FUND
Semi-Annual
Financial Statements
September 30, 1996
(Unaudited)
