HUMMER WAYNE INVESTMENT TRUST, N-30D, 1998-05-22

HUMMER WAYNE INVESTMENT TRUST
N-30D, 1998-05-22

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WAYNE HUMMER INCOME FUND
Annual
Financial Statements

Audited
March 31, 1998
<PAGE>
WAYNE HUMMER INCOME FUND

PHOTO OF: DAVID P. POITRAS

Dear Fellow Shareholder:

With great pleasure, we present you with the audited financial reports of the
Wayne Hummer Income Fund for the year ended March 31, 1998.

OVERVIEW
Over the past year, falling interest rates--and rising bond prices--produced a
large and positive impact on the Wayne Hummer Income Fund. The Fund's total
returns over the past 12- and 6-month periods were 11.25% and 4.16%,
respectively. That compares favorably to the Fund's benchmark index--The Merrill
Lynch Corporate and Government Index of 1 to 9.99 Year, Maturities--which posted
total returns of 9.72% and 3.79% over the same periods. At March 31, 1998, the
Fund's SEC yield was 5.75%.

The Fund's performance, portfolio and financial statements are detailed more
thoroughly on the following pages.

OUTLOOK
The economy continues to grow at a moderate pace, but inflation--and interest
rates--have fallen to the lowest levels in many years. Historically, strong
economic growth has been accompanied by rising inflation. During the current
expansion, however, three economic conditions are working to keep inflation and
interest rates low: gains in productivity; expectations of lower inflation; and
the strong U.S. dollar.

Our forecast has not changed for several months: we continue to expect favorable
economic news--moderate economic growth and low levels of inflation. Our
forecast, as well as the current economic and inflation situation, is very
favorable for bond prices. However, we believe the good news has been factored
into today's high bond prices and low interest rates. As a result, we are
expecting modest increases in interest rates and we continue modifying the
portfolio accordingly.

PORTFOLIO MANAGEMENT & STRATEGY
MATURITY & DURATION SELECTION
The Fund invests, primarily, in intermediate-term fixed income securities. At
March 31, 1998, 72% of the Fund's assets were allocated to securities with
average lives of between 3 and 10 years, 24% of the Fund's assets mature within
3 years, and 4% of the Fund's assets carry maturities greater than 10 years.

Duration is a good measurement of the Fund's price volatility relative to
changes in interest rates. Generally, when interest rates fall, longer-duration
portfolios produce a greater rise in value than shorter-duration portfolios. On
the other hand, in a rising interest rate environment, shorter-duration
portfolios maintain their value better than portfolios with longer durations.

Last year in our report to shareholders we wrote: "While interest rates were
rising, we were extending the average life (and duration) of the Fund's
portfolio. By doing so, we locked-in higher yielding interest rates for longer
periods of time." One year ago, the duration of the Fund's portfolio was 5.31
years, relatively long compared to its benchmark index, which had a duration of
just 3.22 years. Since then, interest rates, as measured by the 10-year treasury
yield, fell 125 basis points. The portfolio's longer duration, in concert with a
period of falling interest rates, help to explain the Fund's superior
performance relative to its benchmark index.

Interest rates remain much lower now than one year ago. As interest rates were
falling over the past year, we were shortening the duration of the Fund's
portfolio by selling longer-term securities and buying shorter-term issues. As
mentioned above, we believe current interest rates are relatively low and may
rise in the future. By shortening the portfolio, our strategy is to reduce the
Fund's exposure to interest rate changes. At March 31, 1998, the Fund's duration
was 4.29 years compared to 3.23 years for the benchmark index.

DIVERSIFICATION
The Fund's portfolio of notes and bonds remains widely diversified along both
issuer and industry lines. Broad diversification reduces the risks associated
with any one issuer or industry. We have allocated no more than 5% of the Fund's
assets to any one issuer except for U.S. government and agency securities.
Additionally, no more than 10% of the Fund's assets are allocated to any one
industry.

CREDIT QUALITY
The yield advantage of corporate bonds relative to government issues increased
modestly over the past six months. As a result, we increased the Fund's
weighting in corporate issues to 59%, up from 55% at September 30, 1997. The
credit quality of the Wayne Hummer Income Fund's portfolio remains relatively
high with 40% of the Fund's assets allocated to U.S. government and U.S.
government agency securities.

Listed below is the credit quality distribution of the Fund's portfolio at
March 31, 1998*:
AAA 40%
AA 7%
A 22%
BBB 31%

* As measured by the higher of the Moody's or Standard & Poor's ratings. U.S.
government issues are considered to be of the highest credit quality, or
AAA-rated.

Given our forecast, we believe the Fund's portfolio is appropriately positioned
to provide a high level of income, consistent with prudent investment
management. Should you have any questions regarding your investment in the Wayne
Hummer Income Fund, feel free to call us at 1-800-621-4477. Thank you for your
continued support.

Sincerely,

David P. Poitras
Vice President and Portfolio Manager
April 28, 1998
<PAGE>
PORTFOLIO HIGHLIGHTS

THE INVESTMENT PHILOSOPHY OF THE FUND IS TO INVEST PRIMARILY IN INTERMEDIATE-
TERM FIXED-INCOME SECURITIES.

TOP 10 BOND HOLDINGS AS OF 03/31/98:
(% OF TOTAL NET ASSETS)

1. U.S. Treasury Note, 6.375%, 03/31/01
2. Federal Home Loan Mtg. Corp., 8.00%, 03/15/21
3. Boise Cascade Corp., 9.875%, 02/15/01
4. United Air Lines, Inc., 9.760%, 05/27/06
5. Federal National Mortgage Assoc., 6.82%, 08/23/05
6. NYNEX Corporation, 9.55%, 05/01/10
7. U.S. Treasury Note, 6.50%, 05/15/05
8. Canadian Pacific Ltd., 8.850%, 06/01/22
9. Parker Hannifin Corp., 9.75%, 02/15/21
10. J. C. Penney Company, Inc., 9.45%, 07/15/02

The top ten holdings comprise 43.3% of total net assets.

AVERAGE MATURITY IS DETERMINED BY THE MATURITY OR REASONABLE CALL DATE.
THE AVERAGE MATURITY OF THE PORTFOLIO ON MARCH 31, 1998 WAS 5.72 YEARS.

MATURITY SCHEDULE
PIE CHART:
LESS THAN 3 YEARS 24%
3-10 YEARS 72%
OVER 10 YEARS 4%

Portfolio holdings are subject to change and may not represent future
portfolio composition.
<PAGE>
Wayne Hummer Income Fund vs. Merrill Lynch Corporate and Government Index
of 1 to 9.99 Year Maturities

Graph Data:
Merrill Lynch Corporate
Income Fund and Government
12/1/92 10000 10000
12/31/92 10035 10130.2
3/31/93 10431 10531.1
6/30/93 10737 10751.2
9/30/93 11080 11004.3
12/31/93 11044 11022.5
3/31/94 10892 10812
6/30/94 10722 10750.9
9/30/94 10751 10836.5
12/31/94 10835 10831.1
3/31/95 11344 11303.2
6/30/95 11865 11867.8
9/30/95 12115 12062.4
12/31/95 12516 12490.9
3/31/96 12342 12389.2
6/30/96 12412 12462.1
9/30/96 12595 12680.8
12/31/96 12956 12993.3
3/31/97 12875 12986.6
6/30/97 13322.8 13368.1
9/30/97 13752.6 13728.6
12/31/97 14126 14024
3/31/98 14324 14247

<TABLE>
PERFORMANCE COMPARISON
<CAPTION>
MERRILL LYNCH CORPORATE AND GOVERNMENT
WAYNE HUMMER INCOME FUND INDEX OF 1 TO 9.99 YEAR MATURITIES
- -------------------------------------------------------------------------------------------------------------
PERIOD GROWTH TOTAL RETURN PERIOD GROWTH TOTAL RETURN
ENDED OF CUMU- AVERAGE ENDED OF CUMU- AVERAGE
3/31/98 $10,000 LATIVE ANNUAL 3/31/98 $10,000 LATIVE ANNUAL
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Year $11,125 11.25% 11.25% 1 Year $10,972 9.72% 9.72%

5 Year $13,733 37.33% 6.55% 5 Year $13,531 35.31% 6.23%

12/1/92- $14,324 43.24% 6.97% 12/1/92- $14,247 42.47% 6.87%
3/31/98 3/31/98

NOTE: This graph compares the results of $10,000 invested in Wayne Hummer
Income Fund on December 1, 1992, with the Merrill Lynch Corporate and
Government Index, which is unmanaged. All returns include reinvested
dividends. Past performance does not guarantee future results. 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>
FUND OVERVIEW

ESTABLISHED IN 1992, THE INVESTMENT OBJECTIVE OF THE WAYNE HUMMER INCOME FUND
(THE "FUND") IS TO ACHIEVE AS HIGH A LEVEL OF CURRENT INCOME AS IS CONSISTENT
WITH PRUDENT INVESTMENT MANAGEMENT. THE FUND INVESTS PRIMARILY IN
INTERMEDIATE-TERM CORPORATE AND U.S. GOVERNMENT & AGENCY SECURITIES.

The Fund's prospectus contains detailed information about permissible
investments.

SERVICES AVAILABLE TO SHAREHOLDERS

Payroll Direct Deposit Plan
You may authorize your employer to deduct a specified amount from your payroll
check to purchase additional shares of the Fund. Complete details are available
from the Fund or your Wayne Hummer Investment Executive.

Systematic Investment Plan
What better way to start early and save regularly than with a Systematic
Investment Plan. You may have subsequent purchases invested automatically each
month. Your bank can send money from your bank account to the Fund. Request an
application with full details from your Investment Executive or the call Fund
directly.

Social Security Direct Deposit Plan
Instead of receiving a monthly check or sending it to your bank, you may use the
Wayne Hummer Income Fund to directly deposit your social security benefits. You
can easily access the money you need, while the rest continues to earn
dividends. You will have to recognize a capital gain or loss each time you
redeem from the Fund, so this service is used by those who do not need the
social security benefits for current income.

IRA or Retirement Plans
Shares of the Wayne Hummer Income Fund are a suitable addition to your IRA or
pension plan. Contact your Wayne Hummer Investment Executive for complete
details on the expanded options available for retirement planning, including the
Roth IRA.

Internet Address: www. whummer.com
Those who enjoy using the computer to access information will find the
prospectus and current rates for the Fund, along with information on the other
Wayne Hummer Funds, on our website. Other services available through Wayne
Hummer Investments LLC are also on-line.
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES

MARCH 31,
ASSETS 1998
<S> <C>
Investments, at value (Cost: $20,751,010) .......................... $ 21,208,323
Interest receivable ................................................ 290,136
Cash ............................................................... 43,956
Receivable for Fund Shares sold .................................... 2,137
Prepaid expenses ................................................... 9,445
------------
Total assets ......................................... 21,553,997

LIABILITIES AND NET ASSETS
Payable for investments purchased .................................. 197,755
Dividends payable .................................................. 23,152
Due to Wayne Hummer Management Company ............................. 9,157
Accounts payable ................................................... 20,320
------------
Total liabilities .................................... 250,384
------------
Net assets applicable to 1,384,724 Shares outstanding, no par value,
equivalent to $15.38 per Share .................................. $ 21,303,613
============

ANALYSIS OF NET ASSETS
Paid-in capital .................................................... $ 21,759,607
Net unrealized appreciation of investments ......................... 457,313
Accumulated net realized loss on sales of investments .............. (913,307)
------------
Net assets applicable to Shares outstanding ........................ $ 21,303,613
============
THE PRICING OF SHARES
Net asset value, offering and redemption price per Share
($21,303,613 / 1,384,724 Shares outstanding) ..................... $ 15.38
============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS

YEAR
ENDED
MARCH 31,
INVESTMENT INCOME: 1998
<S> <C>
Interest ............................................................ $1,549,115
EXPENSES:
Management fee ...................................................... 110,478
Transfer agent fees ................................................. 25,820
Professional fees ................................................... 20,740
Portfolio accounting costs .......................................... 18,709
Printing costs ...................................................... 12,532
Custodian fees ...................................................... 8,200
Amortization of organization costs .................................. 8,000
Trustee fees ........................................................ 2,748
Other ............................................................... 15,939
----------
Total expenses .......................................... 223,166
----------
Net investment income ................................................. 1,325,949
----------
Net realized gain on sales of investments ............................. 126,040
Change in net unrealized appreciation ................................. 932,199
----------
Net realized and unrealized gain on investments ....................... 1,058,239
----------
Net increase in net assets resulting from operations .................. $2,384,188
==========

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED MARCH 31,
OPERATIONS: 1998 1997
<S> <C> <C>
Net investment income .............................. 1,325,949 $ 1,490,893
Net realized gain (loss) on sales of investments ... 126,040 (141,101)
Change in net unrealized appreciation (depreciation) 932,199 (312,194)
------------ ------------
Net increase in net assets resulting from operations . 2,384,188 1,037,598

DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income .............................. (1,303,537) (1,479,285)

CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares sold .......................... 2,085,019 2,190,162
Shares issued upon reinvestment of dividends ....... 991,735 1,118,817
------------ ------------
3,076,754 3,308,979
Less payments for Shares redeemed .................. 4,852,264 6,267,431
------------ ------------
Decrease from Capital Share transactions ............. (1,775,510) (2,958,452)
------------ ------------
Total decrease in net assets ......................... (694,859) (3,400,139)

NET ASSETS:
Beginning of year .................................. 21,998,472 25,398,611
------------ ------------
End of year ........................................ $ 21,303,613 $ 21,998,472
============ ============
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
(For a Share outstanding throughout each year)
YEAR ENDED MARCH 31,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR......... $ 14.66 $ 14.95 $ 14.69 $ 15.10 $ 15.41

INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................... 0.94 0.92 1.02 0.99 0.95
Net realized and unrealized gains
(losses) on investments................ 0.72 (0.29) 0.26 (0.42) (0.26)
------ ------ ------ ------ ------
Total from investment operations........... 1.66 0.63 1.28 0.57 0.69

LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.94) (0.92) (1.02) (0.98) (0.95)
Dividends from net realized gain
on investments......................... 0.00 0.00 0.00 0.00 (a) (0.05)
------ ------ ------ ------ ------
Total distributions.................. (0.94) (0.92) (1.02) (0.98) (1.00)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR............... $ 15.38 $ 14.66 $ 14.95 $ 14.69 $ 15.10
====== ====== ====== ====== ======
TOTAL RETURN............................... 11.25% 4.32% 8.79% 4.16% 4.42%

RATIOS AND SUPPLEMENTARY DATA:
Net assets, end of year (000's).......... $21,304 $21,998 $25,398 $26,352 $33,652
Ratio of expenses to average net assets.. 1.01% 1.01% 0.91% 0.94% 1.13%
Ratio of net investment income to
average net assets..................... 6.00% 6.25% 6.80% 6.70% 6.14%
Portfolio turnover rate.................. 28% 39% 46% 32% 86%

NOTES TO FINANCIAL HIGHLIGHTS:
(a) Less than $.01 per share.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS

March 31, 1998

PRINCIPAL
CORPORATE OBLIGATIONS (59.0%) AMOUNT VALUE
<S> <C> <C>
AUTO & MACHINERY (4.7%)
Johnson Controls, Inc., 7.70%,
due 03/01/15 $410,000 $ 454,034
Parker-Hannifin Corporation, 9.75%,
due 02/15/21 480,000 540,845
---------
994,879
BANKS & FINANCE (7.0%)
Ford Motor Credit Company, 6.125%,
due 01/09/06 500,000 490,675
Norwest Corporation, 7.65%,
due 03/15/05 360,000 385,884
St. Paul Bancorp, Inc., 7.125%,
due 02/15/04 100,000 102,161
Sears Roebuck Acceptance Corp., 6.75%,
due 09/15/05 500,000 510,155
---------
1,488,875
OIL & GAS (2.4%)
Occidental Petroleum Corporation, 8.50%,
due 09/15/04 100,000 103,351
Pennzoil Company, 10.25%,
due 11/01/05 186,000 224,870
Standard Oil Co., 9.00%,
due 06/01/19 176,000 180,757
---------
508,978
PAPER & FOREST PRODUCTS (7.2%)
Boise Cascade Corporation, 9.875%,
due 02/15/01 1,000,000 1,032,020
Champion International Corporation, 6.40%,
due 02/15/26 500,000 494,750
---------
1,526,770
RETAIL (4.6%)
Dayton Hudson Corporation, 5.865%,
due 08/15/27 455,000 456,383
Penney (J.C.) Company, Inc., 9.45%,
due 07/15/02 500,000 531,940
---------
988,323
TELECOMMUNICATIONS (4.7%)
Mountain States Telephone & Telegraph Co.,
5.50%, due 06/01/05 269,000 257,094
NYNEX Corporation, 9.55%,
due 05/01/10 648,094 746,630
---------
1,003,724
TRANSPORTATION (9.3%)
Canadian Pacific Limited, 8.85%,
due 06/01/22 500,000 555,955
Southern Pacific Railroad Corp.,
9.375%, due 08/15/05 200,000 211,250
Union Pacific Corporation,
6.125%, due 01/15/04 200,000 196,662
United Air Lines, Inc., 9.76%,
due 05/27/06 897,031 1,020,104
---------
1,983,971
UTILITIES (4.7%)
Commonwealth Edison Company
8.125%, due 01/15/07 500,000 502,945
8.875%, due 10/01/21 485,000 508,469
---------
1,011,414
<PAGE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
MISCELLANEOUS (14.4%)
Browning-Ferris Industries, Inc.,
6.375%, due 01/15/08 $ 500,000 $ 499,585
CBI Industries, Inc., 6.25%,
due 06/30/00 500,000 501,085
Continental Corp., 7.25%,
due 03/01/03 260,000 267,085
Crown, Cork & Seal Company, Inc.,
8.375%, due 01/15/05 100,000 110,291
Eastman Kodak Company, 9.75%,
due 10/01/04 325,000 385,483
Inco Ltd., Convertible Debenture,
7.75%, due 03/15/16 500,000 500,625
Reynolds Metals Company, 9.40%,
due 02/15/05 250,000 290,943
Xerox Corporation, 5.875%,
due 06/15/37 500,000 504,010
---------
3,059,107
---------
TOTAL CORPORATE OBLIGATIONS
(Cost: $12,303,838) 12,566,041
----------
<CAPTION>
<S> <C> <C>
MUNICIPALITY-TAXABLE (1.3%)
- --------------------
Virginia State Housing Development
Authority, 7.95%, due
05/01/13 (Cost: $253,742) 250,000 268,620

MORTGAGE-BACKED SECURITIES (20.5%)
- --------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS (15.4%)
Federal Home Loan Mortgage Corporation (11.8%)
7.50%, due 11/15/08 500,000 521,070
7.50%, due 02/15/20 400,000 406,988
8.00%, due 03/15/21 1,000,000 1,063,180
8.00%, due 04/15/22 500,000 529,430
---------
2,520,668
Federal National Mortgage Association (3.6%)
8.00%, due 02/25/07 500,000 529,420
8.50%, due 06/25/21 225,321 235,585
---------
765,005
FEDERAL NATIONAL MORTGAGE ASSOCIATION (3.3%)
11.25%, due 04/01/01 45,866 48,791
10.75%, due 09/01/15 40,613 44,337
10.50%, due 01/01/16 74,357 80,811
10.50%, due 06/01/19 229,956 251,381
9.00%, due 12/01/19 79,062 83,479
8.00%, due 12/01/22 179,788 185,839
---------
694,638
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (1.8%)
9.00%, due 11/15/01 82,513 86,330
9.00%, due 02/20/27 276,576 293,090
---------
379,420
---------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost: $4,271,277) 4,359,731
<PAGE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
U.S. GOVERNMENT AND AGENCY ISSUES (18.8%)
<S> <C> <C>
Federal National Mortgage
Association $ 750,000 $ 787,118
6.82%, due 08/23/05
U.S. Treasury Note, 6.50%,
due 05/15/05 545,000 568,549
U.S. Treasury Note, 6.25%,
due 02/15/07 270,000 279,086
U.S. Treasury Note, 6.375%,
due 03/31/01 2,335,000 2,379,178
---------
TOTAL U.S. GOVERNMENT AND AGENCY
ISSUES (Cost: $3,922,153) 4,013,931
---------

TOTAL INVESTMENTS
(Cost: $20,751,010) (99.6%) 21,208,323
CASH AND OTHER ASSETS,
LESS LIABILITIES (0.4%) 95,290
---------
NET ASSETS (100.0%) $21,303,613
===========

NOTE TO PORTFOLIO OF INVESTMENTS:

(a) Based on the cost of investments of $20,751,010 for federal income tax
purposes at March 31, 1998, the aggregate gross unrealized appreciation was
$493,366, the aggregate gross unrealized depreciation was $36,053 and the net
unrealized appreciation of investments was $457,313.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS

ORGANIZATION:
Wayne Hummer Investment Trust (the "Trust"), is an open-end investment
company organized as a Massachusetts business trust. The Trust consists of
two investment portfolios, the Wayne Hummer Income Fund and the Wayne Hummer
Growth Fund, each operating as a separate mutual fund. Presented herein are
the financial statements of the Wayne Hummer Income Fund (the "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. The investment objective of the Fund is to achieve as high
a level of current income as is consistent with prudent investment
management.
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.

USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. In those cases, actual results may differ from estimates.

ORGANIZATION COSTS
Certain organizational costs were reimbursed by the Fund to Wayne Hummer
Management Company, the Fund's Investment Adviser. The costs were amortized
on the straight-line method and repaid quarterly over a five-year period.

2. FUND SHARE VALUATION AND DIVIDENDS TO SHAREHOLDERS
Fund Shares are sold and redeemed on a continuous basis at net asset value.
Net asset value per Share is determined on each day the New York Stock
Exchange is open for trading as of the close of trading on the Exchange by
dividing the value of net assets (total assets less liabilities) by the total
number of Shares outstanding. Dividends 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 that may differ from
generally accepted accounting principles. These differences primarily relate
to differing treatments for mortgage-backed securities.
<PAGE>
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, 1998, amounting to $913,307, is available to offset future capital
gains. If not applied, $732,073 of the loss carry forward expires in 2003,
$51,741 expires in 2004 and $129,493 expires in 2005.

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 ("Distributor and Shareholder
Service Agent"). 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 1.50% of the average daily net assets of the Fund. During the year
ended March 31, 1998, the Fund incurred management fees of $110,478. 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 year ended March 31,
1998, the Fund made no direct payments to its officers and incurred trustee
fees for its unaffiliated trustees of $2,748.

5. INVESTMENT TRANSACTIONS
Investment transactions (excluding money market instruments) are as follows:
YEAR ENDED
MARCH 31, 1998
-------------
Purchases $6,111,511
Proceeds from sales $7,431,205

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:

YEAR ENDED MARCH 31,
1998 1997
---------- ---------
Shares sold 136,895 147,250
Shares issued upon reinvestment
of dividends 65,451 75,320
---------- ---------
202,346 222,570
Shares redeemed (318,603) (420,513)
---------- ---------
Net decrease in Shares outstanding (116,257) (197,943)
========== =========

7. FEDERAL TAX STATUS OF 1997 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 the U.S. Treasury Department regulations.
<PAGE>
REPORT OF INDEPENDENT AUDITORS

Shareholders and Board of Trustees
Wayne Hummer Income Fund

We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Wayne Hummer Income Fund as of March 31, 1998,
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 1994. 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 31,1998, 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 Income Fund as of March 31, 1998, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended, and financial highlights for each of the fiscal years since
1994, in conformity with generally accepted accounting principles.

Ernst & Young LLP

Chicago, Illinois
May 1, 1998

BOARD OF TRUSTEES

Philip M. Burno
Chairman

Steven R. Becker
Charles V. Doherty
Joel D. Gingiss
Patrick B. Long
Eustace K. Shaw

GRAPHIC: MEMBER OF 100% NO-LOAD(TM) MUTUAL FUND COUNCIL

LOGO:
WH
WAYNER HUMMER INVESTMENTS LLC

This brochure must be preceded or accompanied by a current prospectus of the
Wayne Hummer Investment Trust.

300 South Wacker
Chicago, Illinois
60606-6607

1.800.621.4477 (toll-free)
(312) 431.1700 (local)
200 E. Washington Street
Appleton, Wisconsin
54911-5468

1.800.678.0833 (toll-free)
(920) 734.1474 (local)

www.whummer.com
<PAGE>
WAYNE HUMMER INCOME FUND

Annual
Financial
Statements

March 31, 1998
(Audited)

WAYNE HUMMER
INCOME FUND

300 South Wacker Drive
Chicago, IL 60606-6607

First Class
U.S. Postage
PAID
Berwyn, IL
Permit No. 150

<PAGE>

WAYNE HUMMER GROWTH FUND

Annual
Financial Statements

Audited
March 31, 1998

<PAGE>

WAYNE HUMMER GROWTH FUND

PHOTO OF: THOMAS J. ROWLAND

Dear Shareholder:

This annual report of the Wayne Hummer Growth Fund ( the "Fund") covers its
fourteenth complete fiscal year which ended March 31, 1998. The report contains
a chart which compares a hypothetical $10,000 investment in the Fund for the
past ten years with a like amount invested in "the market", as well as
management's discussion and analysis of the Fund's performance during the fiscal
year. As proxies for "the market" we again provide both the Standard & Poor's
Composite Stock Price Index (the S&P 500) and the Russell Mid-Cap Index.

For the fiscal year ended March 31, 1998, the value of a fund share increased to
$36.10 from $28.03 on March 31, 1997, or 28.9%. If distributions to shareholders
of income and capital gains were reinvested, the Fund's total return would be
40.6%. During this same period the total return of the S&P 500 was 48.0% and the
Russell Mid Cap Index, 44.1%, as the mid-cap sector of the market continued to
lag the stocks of large market capitalization companies.

The S&P 500, like the Dow Jones Industrial Average, is widely recognized and
commonly cited in the financial media as a barometer of stock 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, 91%
of the total market value of the S&P 500 is composed of companies listed on the
New York Stock Exchange. The median market value of companies comprising the S&P
500 was $6.9 billion at calendar year-end.

For the past several years, an emphasis has been placed on identifying and
acquiring promising investments that would generally be characterized as
mid-capitalization stocks. Stocks in the Fund's portfolio have a median market
capitalization of $3.5 billion. For this reason we believe that the Russell
Mid-Cap Index more closely represents significant characteristics of the Fund.
The Russell Mid-Cap Index had a median market capitalization of $2.7 billion at
year-end. It carried a 17.3 price/earnings ratio on composite estimated 1998
earnings, and had a 15.2% return on shareholders equity last year. The
securities in the Fund's portfolio carried a price/earnings ratio of 18.2 on
expected 1998 earnings, and had a 16.6% return on shareholder equity last year.

The graph at the top of page one of this report depicts the relative performance
of your Fund against both of the stock market indices discussed above. As noted,
the total return of the Fund of 40.6% lagged the 44.1% return of the Russell
Index by 3.5 percentage points. Part of this negative variance can be attributed
to the Fund's expense ratio of just under 1.0% for the past year. Other
explanatory factors include sector allocation differences between the Fund and
the market. For example, the Fund's exposure to technology stocks has been
increased but remains significantly lower than that of the market as reflected
in the Russell Index. In addition, while technology stocks in general produced
well above average returns last year, those technology stocks owned in the Fund
under-performed the technology sector. The Fund's position in financial services
stocks, while still significant, has been reduced to a below market weighting,
in contrast to a year ago. Continued consolidation in this sector has led to
continued above market average returns by the financial stocks. A well above
market exposure to basic materials stocks in the Fund was met with well below
market returns as inflation remained subdued.

The Fund has historically tended to trail the indices in strong markets and
produced better relative results in a declining market environment. A standard
measure of volatility (or risk) is beta. A lower value connotes less volatility;
a higher value, greater volatility compared to the market. The market beta, or
central value, is 1.0. The Fund's beta has consistently fallen in a range of
.75-.95. Management believes that the Fund's volatility, as measured by beta,
indicates its lower risk compared to funds with higher volatility.

As always, we are pleased to be a part of your long-term investment planning.

Sincerely,

Thomas J. Rowland, CFA
President
Wayne Hummer Investment Trust
April 28, 1998
<PAGE>
PORTFOLIO HIGHLIGHTS

TOP 10 STOCK HOLDINGS AS OF MARCH 31, 1998

(% of Total Net Assets)
Illinois Tool Works, Inc. 5.5%
Interpublic Group of Companies, Inc. 5.0
R. P. Scherer Corporation 4.1
Northern Trust Corporation 3.7
Old Republic International Corp. 3.1
Sara Lee Corporation 3.1
Sonoco Products Company 2.9
Cincinnati Financial Corp. 2.7
Avery Dennison Corporation 2.7
Emerson Electric Co. 2.6

There is no guarantee that the Fund will continue to hold any one particular
security. The composition of the Fund's top holdings is subject to change.

PORTFOLIO CHANGES FOR THE SIX MONTHS ENDED
MARCH 31, 1998

SHARES
ADDITIONS CHANGE HOLDINGS
- --------- -----------------
ADC Telecommunications, Inc. 25,000 25,000
Andrew Corporation 15,000 75,000
Fastenal Company 40,000 70,000
Pepsico, Inc. 20,000 60,000
Sun Microsystems, Inc. 20,000 60,000
Viking Office Products, Inc. 40,000 100,000

SHARES
REDUCTIONS CHANGE HOLDINGS
- ---------- -----------------
Choice Hotels International, Inc. 100,000 -0-
Cincinnati Financial Corp. 19,612 30,000
Emerson Electric Co. 5,000 55,000
Illinois Tool Works, Inc. 10,000 120,000
Kimberly Clark 25,200 -0-
Tricon Global Restaurants, Inc. 4,000 -0-
<PAGE>
Wayne Hummer Growth Fund vs. Russell Mid-Cap and the S&P 500

VALUE OF $10,000 INITIAL INVESTMENT (THOUSANDS)

FOR THE TEN YEAR PERIOD ENDED 3/31/98

WAYNE
HUMMER
GROWTH RUSSELL
FUND MID-CAP S&P 500
1988 10 10 10
10.32 10.73 10.65
10.14 10.63 10.69
10.23 10.68 11.02
1989 10.76 11.47 11.79
11.41 12.52 12.82
12.38 13.72 14.19
12.69 13.48 14.48
1990 12.79 12.96 14.05
13.51 13.44 14.91
11.89 10.77 12.87
13.32 11.93 14.01
1991 15.02 14.38 16.06
15.28 14.46 15.99
15.87 15.53 16.85
17.17 16.89 18.26
1992 17.29 17.15 17.8
17.17 17.12 18.12
18.2 17.78 18.71
18.94 19.65 19.66
1993 19.01 20.72 20.51
18.77 21.05 20.59
18.85 22.17 21.12
19.62 22.46 21.75
1994 18.88 21.8 20.92
18.66 21.33 21
19.51 22.54 22.03
19.44 21.99 22.02
1995 21.35 24.28 24.17
21.9 26.31 26.45
22.71 28.65 28.55
24.27 29.57 30.27
1996 24.79 31.35 31.89
25.25 32.23 33.31
25.71 33.24 34.33
27.15 35.19 37.2
1997 27.67 34.9 38.2
31.7 39.63 44.86
34.6 44.89 48.22
35.35 45.39 49.61
1998 38.9 50.3 56.53

<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
3/31/98 $10,000 LATIVE ANNUAL 3/31/98 $10,000 LATIVE ANNUAL 3/31/98 $10,000 LATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year $14,057 40.57% 40.57% 1 Year $14,413 44.13% 44.13% 1 Year $14,801 48.01% 48.01%
5 Year $20,460 104.60% 15.39% 5 Year $24,276 142.76% 19.41% 5 Year $27,459 174.59% 22.39%
10 Year $38,909 289.09% 14.55% 10 Year $50,299 402.99% 17.53% 10 Year $56,574 465.74% 18.92%

NOTE: The Russell Mid-Cap and the S&P 500 are unmanaged and all returns include
reinvested dividends.
</TABLE>

Wayne Hummer Growth Fund Value of Initial $10,000 Investment

FOR THE PERIOD 12/31/83 THRU 3/31/98

GRAPH:
VALUE OF VALUE OF
REINVESTED REINVESTED NET ASSET
CAPITAL GAINS DIVIDENDS VALUE
(ALL AMOUNTS IN THOUSANDS)
10000 0 0
1984 9830 0 0
9350 58 0
9980 149 0
10170 245 0
1985 10670 357 0
11120 504 7
10530 536 6
12250 695 7
1986 13850 857 8
13880 926 397
12570 903 359
13330 1023 381
1987 16140 1309 461
15840 1436 1149
16930 1606 1228
13220 1323 1557
1988 13790 1430 1624
14190 1523 1676
13900 1540 1642
13740 1669 1821
1989 14450 1756 1915
15130 1935 2152
16360 2169 2327
16410 2306 2656
1990 16540 2324 2678
16960 2580 3224
14860 2343 2825
16000 2843 3600
1991 18040 3206 4059
18130 3365 4242
18740 3609 4385
20020 4142 4757
1992 20170 4173 4792
19840 4202 4883
20950 4560 5156
21640 4919 5355
1993 21720 4938 5374
21380 4949 5290
21400 5060 5295
22060 5486 5511
1994 21230 5279 5303
20910 5297 5223
21790 5628 5443
21340 5766 5649
1995 23430 6331 6202
23840 6565 6481
24660 6902 6704
25810 7481.71 7592.31
1996 26370 7644.04 7757.04
26040 7692.94 8800.4
26450 7919.35 8938.96
27500 8468.12 9773.04
1997 28030 8631.33 9961.39
30880 9622.23 12900.4
33650 10576.8 14057.5
32800 10675 16072
1998 36100 11750 17689

NOTE: This graph illustrates the results of $10,000 invested in Wayne Hummer
Growth Fund on December 30, 1983. Past performance does not guarantee
future results. 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 DECEMBER 30, 1983, THE INVESTMENT OBJECTIVE OF THE WAYNE HUMMER
GROWTH FUND (THE "FUND") IS TO ACHIEVE LONG-TERM GROWTH AND CURRENT INCOME IS A
SECONDARY OBJECTIVE. AN EMPHASIS HAS BEEN PLACED ON IDENTIFYING AND ACQUIRING
PROMISING INVESTMENTS THAT WOULD GENERALLY BE CHARACTERIZED AS
MID-CAPITALIZATION STOCKS.

The Fund's prospectus contains detailed information about permissible
investments.

SERVICES AVAILABLE TO SHAREHOLDERS

Social Security Direct Deposit Plan
Instead of receiving a monthly check or sending it to your bank, you may use the
Wayne Hummer Growth Fund to directly deposit your social security benefits. You
will have to recognize a capital gain or loss each time you redeem from the
Fund, so this service is used by those who do not need the social security
benefits for current income.

Taxable Transactions for Non-Retirement Accounts
Each time you sell shares of the Fund, you must calculate the gain or loss
attributed to that transaction. The Fund can provide you with the average cost
basis of the shares sold if you opened the account after January 1, 1991. If you
have not been getting an average cost statement and you have been calculating
the cost basis on your account using the average cost method, you can provide
the Fund with your most recent calculation. We will update our system so that
any future redemptions will generate an Average Cost Statement that will be
mailed to you in February. Contact the Fund or your Investment Executive for
more information.
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES

<CAPTION>
MARCH 31,
ASSETS 1998
<S> <C>
Investments, at value (Cost: $68,828,291) .......................... $140,385,172
Cash ............................................................... 148,272
Receivable for Fund Shares sold .................................... 175,897
Dividends receivable ............................................... 141,550
Prepaid expenses ................................................... 13,575
Insurance deposit .................................................. 3,845
------------
Total assets ......................................... 140,868,311

LIABILITIES AND NET ASSETS
Due to Wayne Hummer Management Company ............................. 88,870
Accounts payable ................................................... 36,527
------------
Total liabilities .................................... 125,397
------------
Net assets applicable to 3,898,610 Shares outstanding, no par value,
equivalent to $36.10 per Share ................................... $140,742,914
============

ANALYSIS OF NET ASSETS
Paid-in capital .................................................... $ 66,022,673
Net unrealized appreciation of investments ......................... 71,556,881
Undistributed net realized gain on sales of investments ............ 3,022,924
Undistributed net investment income ................................ 140,436
------------
Net assets applicable to Shares outstanding ........................ $140,742,914
============
THE PRICING OF SHARES
Net asset value, offering and redemption price per Share
($140,742,914 / 3,898,610 Shares outstanding) .................... $ 36.10
============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
YEAR
ENDED
MARCH 31,
INVESTMENT INCOME: 1998
<S> <C>
Dividends ........................................ $ 1,695,994
Interest ......................................... 195,926
-----------
Total investment income .............. 1,891,920

EXPENSES:
Management fee ................................... 950,496
Transfer agent fees .............................. 59,111
Professional fees ................................ 46,500
Printing costs ................................... 28,958
Custodian fees ................................... 23,601
Portfolio accounting fees ........................ 19,640
Registration costs ............................... 19,649
Trustee fees ..................................... 18,200
Other ............................................ 18,332
-----------
Total expenses ....................... 1,184,487
-----------
Net investment income .............................. 707,433
-----------
Net realized gain on sale of investments ........... 8,587,034
Change in net unrealized appreciation .............. 32,032,306
-----------
Net gain on investments ............................ 40,619,340
-----------
Net increase in net assets resulting from operations $41,326,773
===========

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED MARCH 31,
1998 1997
<S> <C> <C>
OPERATIONS:
Net investment income ........................................... $ 707,433 $ 995,221
Net realized gain on sale of investments ........................ 8,587,034 4,861,756
Change in net unrealized appreciation ........................... 32,032,306 5,425,276
------------- -------------
Net increase in net assets resulting from operations .............. 41,326,773 11,282,253

DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ........................................... (759,930) (1,127,423)
Net realized gain on investments ................................ (9,333,854) (3,830,121)
------------- -------------
Total dividends to Shareholders ................................... (10,093,784) (4,957,544)

CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares sold ....................................... 7,179,953 5,813,237
Shares issued upon reinvestment of dividends .................... 9,780,680 4,796,167
------------- -------------
16,960,633 10,609,404
Less payments for Shares redeemed ............................... 11,665,186 15,327,845
------------- -------------
Increase (decrease) from Capital Share transactions ............... 5,295,447 (4,718,441)

Total increase in net assets ...................................... 36,528,436 1,606,268

NET ASSETS:
Beginning of year ............................................... 104,214,478 102,608,210
------------- -------------
End of year (including undistributed net investment income of
$140,436 and $192,933 at March 31, 1998 and 1997, respectively) $ 140,742,914 $ 104,214,478
============= =============
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
(For a Share outstanding throughout each year)

YEAR ENDED MARCH 31,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR....... $ 28.03 $ 26.37 $ 23.43 $ 21.23 $ 21.72

INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................. 0.19 0.26 0.32 0.32 0.28
Net realized and unrealized gains (loss)
on investments....................... 10.57 2.69 3.41 2.40 (0.42)
------- ------- ------- ------- -------
Total from investment operations......... 10.76 2.95 3.73 2.72 (0.14)

LESS DISTRIBUTIONS:
Dividends from net investment income... (0.20) (0.29) (0.31) (0.31) (0.28)
Distributions from net realized gain on investments (2.49) (1.00) (0.48) (0.21) (0.07)
------- ------- ------- ------- -------
Total distributions...................... (2.69) (1.29) (0.79) (0.52) (0.35)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF YEAR............. $ 36.10 $ 28.03 $ 26.37 $ 23.43 $ 21.23
======= ======= ======= ======= =======

TOTAL RETURN............................. 40.57% 11.61% 16.15% 13.04% (0.69%)

RATIOS AND SUPPLEMENTARY DATA:
Net assets, end of year ($000's)....... 140,743 104,214 102,608 94,770 92,391
Ratio of expenses to average net assets 0.96% 0.99% 1.06% 1.07% 1.07%
Ratio of net investment income to
average net assets................... 0.58% 0.97% 1.29% 1.44% 1.33%
Portfolio turnover rate................ 7% 9% 6% 3% 2%
Average commission rate................ $ 0.0569 $ 0.0551 -- -- --
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS

March 31, 1998

NUMBER
OF
COMMON STOCKS (96.6%) SHARES VALUE
- --------------- --------- ---------
<S> <C> <C>
AUTO & MACHINERY 7.8%

Illinois Tool Works, Inc. 120,000 $ 7,770,000
Regal-Beloit Corporation 100,000 3,175,000
----------
10,945,000

BANKS 6.2%

First of America Bank Corporation 40,000 3,460,000
Northern Trust Corporation 70,000 5,232,500
----------
8,692,500

CHEMICAL 8.8%

Avery Dennison Corporation 70,000 3,736,250
Morton International, Inc. 100,000 3,281,250
RPM, Inc. 125,000 2,226,563
Schulman (A.), Inc. 125,000 3,156,250
----------
12,400,313

COMMUNICATION EQUIPMENT 4.4%

ADC Telecommunications, Inc. (b) 25,000 689,063
Andrew Corporation (b) 75,000 1,485,937
QUALCOMM Incorporated (b) 40,000 2,140,000
Motorola, Inc. 30,000 1,818,750
----------
6,133,750

ELECTRICAL/ELECTRONICS 8.2%

Applied Materials, Inc. (b) 80,000 2,825,000
Emerson Electric Co. 55,000 3,585,312
Sun Microsystems, Inc. (b) 60,000 2,503,125
Thomas & Betts Corporation 40,000 2,560,000
----------
11,473,437

FOOD, BEVERAGE & HOUSEHOLD 10.6%

McCormick & Company, Incorporated 100,000 3,225,000
PepsiCo, Inc. 60,000 2,561,250
Rubbermaid Incorporated 100,000 2,850,000
Sara Lee Corporation 70,000 4,313,750
Smucker (The J. M.) Company Class B 80,000 2,020,000
----------
14,970,000

HEALTH CARE AND PHARMACEUTICALS 10.9%

Abbott Laboratories 40,000 3,012,500
C. R. Bard, Inc. 60,000 2,205,000
MedPartners, Inc. (b) 43,862 449,586
Patterson Dental Company (b) 75,000 2,325,000
<PAGE>
<CAPTION>
NUMBER
OF
SHARES VALUE
--------- ---------
<S> <C> <C>
HEALTH CARE & PHARMACEUTICALS (CONTINUED)

R. P. Scherer Corporation (b) 85,000 $ 5,737,500
STERIS Corporation (b) 30,000 1,620,000
----------
15,349,586

INSURANCE 9.2%

AON Corporation 45,000 2,913,750
Cincinnati Financial Corporation 30,000 3,757,500
Ohio Casualty Corporation 40,000 1,920,000
Old Republic International
Corporation 100,000 4,431,250
----------
13,022,500

MERCHANDISING & DISTRIBUTION 8.0%

Arbor Drugs, Inc. 150,000 3,534,375
Fastenal Company 70,000 3,036,250
The Gap, Inc. 52,500 2,362,500
Viking Office Products, Inc. (b) 100,000 2,325,000
----------
11,258,125

OIL & GAS 2.0%

Burlington Resources, Inc. 60,000 2,876,250

PAPER & FOREST PRODUCTS 7.2%

Albany International Corp. Class A 100,000 2,612,500
Consolidated Papers, Inc. 55,000 3,520,000
Sonoco Products Company 100,000 4,006,250
----------
10,138,750

PUBLISHING & MEDIA 5.0%

Interpublic Group of
Companies, Inc. 112,500 6,989,063

SERVICES 2.6%

H & R Block, Inc. 60,000 2,853,750
Olsten Corporation 50,000 793,750
----------
3,647,500

MISCELLANEOUS 5.7%

Autoliv, Inc. 40,920 1,271,077
Bacou USA, Inc. (b) 65,000 1,064,375
The Boeing Company 60,000 3,127,500
Pall Corporation 120,000 2,580,000
----------
8,042,952
----------
Total Common Stocks (Cost: $64,382,845) $135,939,726
</TABLE>
<PAGE>
<TABLE>
SHORT-TERM INVESTMENTS (3.2%)
- ----------------------
<CAPTION>
MATURITY DATE PRINCIPAL
RATE % (A) (1998) AMOUNT VALUE
-------- ------- ---------- -----------
<S> <C> <C> <C> <C>
General Electric Capital Corp. 5.620 04/03 $1,220,000 $1,219,625
United States Treasury Bill 5.315 04/23 1,037,000 1,033,728
General Motors Acceptance Corp. 5.607 04/24 100,000 99,648
General Electric Capital Corp. 5.589 04/27 252,000 251,001
United States Treasury Bill 5.326 04/30 450,000 448,104
United States Treasury Bill 5.085 05/07 303,000 301,488
United States Treasury Bill 5.111 05/14 947,000 941,333
United States Treasury Bill 5.059 06/11 152,000 150,519
------------
Total Short-Term Investments (Cost: $4,445,446) 4,445,446
------------

TOTAL INVESTMENTS (Cost: $68,828,291) (99.8%) 140,385,172
CASH AND OTHER ASSETS, LESS LIABILITIES (0.2%) 357,742
------------
NET ASSETS (100.0%) $140,742,914
============
</TABLE>
NOTES TO PORTFOLIO OF INVESTMENTS:
(a) Interest rates on short-term investments represent annualized yield to date
of maturity.
(b) Non-income producing security.
(c) Based on the cost of investments of $68,828,291 for federal income tax
purposes at March 31, 1998, the aggregate gross unrealized appreciation was
$72,147,339, the aggregate gross unrealized depreciation was $590,458 and the
net unrealized appreciation of investments was $71,556,881.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
ORGANIZATION:
Wayne Hummer Investment Trust (the "Trust"), is an open-end investment
company organized as a Massachusetts business trust. The Trust consists of
two investment portfolios, the Wayne Hummer Growth Fund and the Wayne Hummer
Income Fund, each operating as a separate mutual fund. Presented herein are
the financial statements of the Wayne Hummer Growth Fund (the "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. The investment objective of the Fund is to achieve
long-term capital growth.
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
closing 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 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.

USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the amounts reported in the financial statements
and accompanying notes. In those cases, actual results may differ
from estimates.

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 22, 1998, an ordinary
income dividend of $0.05 per Share and a long-term capital gain dividend of
$0.78 per share were declared, payable April 23, 1998, to Shareholders of
record on April 22, 1998.

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 ("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 1.50% of the average daily net assets of the Fund.
During the year ended March 31, 1998, the Fund incurred management fees of
$950,496. 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 year ended March 31, 1998, the Fund made no direct payments to its
officers and incurred trustee fees for its unaffiliated trustees of $18,200.

5. INVESTMENT TRANSACTIONS
Investment transactions (excluding money market instruments) are as follows:
YEAR ENDED
MARCH 31, 1998
-------------
Purchases $ 8,693,169
Proceeds from sales $15,787,737

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:
YEAR ENDED MARCH 31,
1998 1997
----------- -----------
Shares sold 222,095 217,693
Shares issued upon reinvestment
of dividends 324,771 183,754
----------- -----------
546,866 401,447
Shares redeemed (366,315) (574,850)
----------- -----------
Net increase (decrease) in
Shares outstanding 180,551 (173,403)
=========== ===========
7. FEDERAL TAX STATUS OF 1997 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 1997 qualifies
for the dividends-received deduction available to corporations as provided by
the Internal Revenue Code.
<PAGE>
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, 1998,
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 1994. 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, 1998, 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, 1998, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended, and financial highlights for each of the fiscal years since
1994, in conformity with generally accepted accounting principles.

Ernst & Young LLP

Chicago, Illinois
May 1, 1998

BOARD OF TRUSTEES

Philip M. Burno
Chairman

Steven R. Becker
Charles V. Doherty
Joel D. Gingiss
Patrick B. Long
Eustace K. Shaw

GRAPHIC: MEMBER OF 100% NO-LOAD (TM) MUTUAL FUND COUNCIL

LOGO: WH WAYNE HUMMER INVESTMENTS LLC

This brochure must be preceded or accompanied by a current prospectus of the
Wayne Hummer Investment Trust.

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)

www.whummer.com
<PAGE>
WAYNE HUMMER GROWTH FUND
Annual
Financial
Statements

March 31, 1998
(Audited)

WAYNE HUMMER
GROWTH FUND

300 South Wacker Drive
Chicago, IL 60606-6607

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