Wayne Hummer(R)
Money Market Fund
[Photo of David P. Poitras]
David P. Poitras
Semi-Annual
Financial Statements (Unaudited)
September 30, 2000
Dear Fellow Shareholder:
We are pleased to present the semi-annual financial statements of the Wayne
Hummer Money Market Fund (the "Fund") for the six-month period ended September
30, 2000.
Between June 1999, and May 2000, the Federal Reserve Bank increased short-term
interest rates six times, for a total of 1.75%. The Fed's goal was to slow the
economy enough to quash inflationary pressures, but not so much as to push the
economy into a recession. With the economy showing signs of a slowdown, the
Federal Reserve Bank has paused. Short-term interest rates have stabilized.
After rising steadily for much of the past six months, your Fund's yield has
also stabilized.
The seven-day average yield on the Fund's portfolio for the period ended
September 30, 2000, was 5.93%; if dividends were reinvested the effective yield
was 6.09%. These figures represent historical data; future yields may be higher
or lower. Net assets under management at the end of the period totaled
$350,841,931.
We follow a conservative approach when managing your Fund's portfolio, investing
exclusively in those short-term, fixed-income securities that
<PAGE>
present the Fund with minimal credit risk. In other words, all investments are
of the highest credit quality.
All investments within the Fund's portfolio are limited to a maximum maturity of
one year. Normally, we maintain an average portfolio maturity between 30 and 60
days, ensuring a prudent balance of both superior liquidity and high yield.
We invest a large percentage of the Fund's portfolio in commercial paper - about
73% as of September 30, 2000. Commercial paper offers superior yield, liquidity
and credit quality, thus the heavy portfolio weighting. We allocate the balance
of the portfolio to short-term corporate notes, U. S. government agency
securities and other high-quality, liquid money market instruments.
Complete details about the portfolio are presented on the following pages.
We appreciate your continued support and ask that you call or write us if you
have any questions about the Fund or your account.
Sincerely,
/s/David P. Poitras
David P. Poitras,
Portfolio Manager
October 17, 2000
An investment in the Fund is not a deposit or obligation of or guaranteed or
insured by the U.S. Government, any bank, the Federal Deposit Insurance
Corporation, or any other agency. There can be no assurance that the Fund will
be able to maintain a stable net asset value of $1.00 per share.
<PAGE>
Automatic Investing
This graph illustrates investing $100, $200, and $500 a month at a hypothetical
annual fixed investment return of 5% over a period of 20 years.
[Line Chart Here]
$100/month $200/month $500/month
5 years 6829 13658 34145
10 years 15593 31186 77964
15 years 26840 53680 134200
20 years 41274 82548 206371
Even people with modest income can build significant invested assets over time.
Wayne Hummer Money Market Fund provides an easy way for you to start
accumulating wealth. The Systematic Investment Plan allows you to invest a set
amount every month. You can have as little as $100 transferred from your
paycheck, government check or from a bank, savings and loan or credit union
account every month. Then just sit and watch your investment grow. Contact the
Fund or your Investment Executive for complete details.
This illustration does not reflect an actual investment in the Wayne Hummer
Money Market Fund. The value of your original investment and your return may
vary.
<PAGE>
Fund Overview
Established in 1982, the primary objective of the Wayne Hummer Money Market Fund
(the "Fund") is to maximize current income while preserving capital and
maintaining liquidity. The Fund is an excellent vehicle for short-term cash
management and for investors who need stability of principal. The Fund seeks to
maintain a stable $1.00 net asset value per share at all times, although there
is no guarantee that we will be able to do so.
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 Money Market Fund to directly deposit your social security
benefits. You can easily access the money you need, while the rest continues to
earn dividends. Contact your Wayne Hummer Investment Executive for complete
details.
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 financial institution can send money from your bank account to the
Fund. Request an application with full details from your Investment Executive or
call the Fund directly.
IRA or Retirement Plans
Shares of the Wayne Hummer Money Market 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.
Checkwriting Privileges
After completing a request for checkwriting privileges, you may write checks in
any amount from $500 to $250,000. Your full investment in the Fund will continue
to earn dividends until your check is presented to our bank for collection. A
checkwriting authorization card will be sent to you upon request.
Internet Address: www.whummer.com
Those who enjoy using the computer to access information can view your account
activity online. You can also find the prospectus and current rates for the
Fund, along with daily market commentary and research information from Wayne
Hummer Investments. Contact your Investment Executive or the Fund for more
information.
<PAGE>
Statement of Assets and Liabilities
September 30, 2000 March 31,
(Unaudited) 2000
================================================================================
Assets
Investments, at amortized cost $348,955,108 $358,004,362
--------------------------------------------------------------------------------
Cash 190,141 196,126
--------------------------------------------------------------------------------
Interest receivable 1,441,340 1,343,405
--------------------------------------------------------------------------------
Receivable for Fund Shares sold 3,570,791 6,349,731
--------------------------------------------------------------------------------
Prepaid expenses 49,309 104,615
--------------------------------------------------------------------------------
Insurance deposit 18,775 18,775
================================================================================
Total assets 354,225,464 366,017,014
================================================================================
Liabilities and Net Assets
Payable for Fund Shares redeemed 2,863,650 4,369,085
--------------------------------------------------------------------------------
Dividends payable 332,929 252,542
--------------------------------------------------------------------------------
Due to Wayne Hummer Management Company 146,065 150,209
--------------------------------------------------------------------------------
Accounts payable 40,889 58,549
================================================================================
Total liabilities 3,383,533 4,830,385
================================================================================
Net assets applicable to Shares outstanding,
equivalent to $1.00 per Share $350,841,931 $361,186,629
================================================================================
Statement of Operations
Six months ended Year ended
September 30, 2000 March 31,
(Unaudited) 2000
================================================================================
Interest income $11,534,618 $19,061,825
--------------------------------------------------------------------------------
Expenses
Management fee 893,333 1,746,900
--------------------------------------------------------------------------------
Transfer agent fees 92,750 178,800
--------------------------------------------------------------------------------
Shareholder service agent fees 76,000 153,000
--------------------------------------------------------------------------------
Professional fees 63,460 146,919
--------------------------------------------------------------------------------
Printing costs 45,107 73,652
--------------------------------------------------------------------------------
Registration costs 33,550 53,165
--------------------------------------------------------------------------------
Custodian fees 32,000 63,300
--------------------------------------------------------------------------------
Trustee fees 17,500 37,250
--------------------------------------------------------------------------------
Insurance costs 17,500 11,750
--------------------------------------------------------------------------------
Portfolio accounting fees 14,721 27,743
--------------------------------------------------------------------------------
Other 8,000 8,900
================================================================================
Total expenses 1,293,921 2,501,379
================================================================================
Net increase in net assets resulting
from operations $10,240,697 $16,560,446
================================================================================
See accompanying notes to financial statements.
<PAGE>
Statement of Changes in Net Assets
Six months ended Year ended
September 30, 2000 March 31,
(Unaudited) 2000
================================================================================
Operations
Net investment income $10,240,697 $16,560,446
--------------------------------------------------------------------------------
Dividends to Shareholders from net
investment income (10,240,697) (16,560,446)
--------------------------------------------------------------------------------
Capital Share transactions (dollar amounts and number of Shares are the same):
Proceeds from Shares sold 419,526,359 921,160,340
--------------------------------------------------------------------------------
Shares issued upon reinvestment of dividends 9,811,645 16,214,534
================================================================================
429,338,004 937,374,874
--------------------------------------------------------------------------------
Less payments for Shares redeemed (439,682,702) (927,161,702)
================================================================================
Increase (decrease) due to
Capital Share transactions (10,344,698) 10,213,172
================================================================================
Net assets
Beginning of the period 361,186,629 350,973,457
--------------------------------------------------------------------------------
End of the period $350,841,931 $361,186,629
================================================================================
Financial Highlights
(For a Share outstanding throughout each period)
Six months ended
September 30, 2000 Year ended March 31,
(Unaudited) 2000 1999 1998 1997
================================================================================
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------------------------------------------------
Income from investment operations
Net investment income 0.03 0.05 0.04 0.04 0.04
--------------------------------------------------------------------------------
Less dividends from net investment
income (0.03) ( 0.05) (0.04) (0.04) (0.04)
================================================================================
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------------------------------------------------
Total return 2.91% 4.85% 4.82% 5.07% 4.80%
--------------------------------------------------------------------------------
Ratios and Supplementary Data
Net assets, end of period ($000's) 350,842 361,187 350,973 298,908 238,238
--------------------------------------------------------------------------------
Ratio of total expenses to average
net assets 0.73%(a) 0.72% 0.71% 0.72% 0.74%
--------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 5.75%(a) 4.74% 4.70% 4.96% 4.70%
================================================================================
Note to Financial Highlights:
(a) Determined on an annualized basis.
See accompanying notes to financial statements.
<PAGE>
Portfolio of Investments
September 30, 2000 (Unaudited)
Value
================================================================================
Commercial Paper (73.1%)
Banking (9.0%)
Bank One Corporation
6.67% - 6.71%, 12/20/00 $5,716,293
Banc One Financial Corporation
6.74% - 6.77%, 12/22/00 - 02/20/01 9,797,261
Citicorp
6.62%, 11/13/00 7,541,176
Northern Trust Corporation
6.58% - 6.65%, 10/12/00 - 11/24/00 8,527,195
--------------------------------------------------------------------------------
31,581,925
Business Finance (14.8%)
Ford Motor Credit Company
6.60%, 11/06/00 4,470,885
General Electric Capital Corp.
6.60% - 6.70%, 10/06/00 - 11/20/00 4,041,414
GE Credit Capital Services of
Puerto Rico 6.62% - 6.75%, 10/05/00 - 10/23/00 7,400,399
General Motors Acceptance Corp.
6.58% - 6.66%, 10/05/00 - 12/13/00 8,802,038
IBM Credit Corporation
6.60%, 10/05/00 - 11/10/00 12,056,164
National Rural Utilities Cooperative Finance Corp.
6.61% - 6.65%, 11/08/00 - 11/15/00 15,326,200
--------------------------------------------------------------------------------
52,097,100
Chemicals (0.6%)
DuPont (E.I.) de Nemours & Co.
6.09%, 10/03/00 1,999,333
--------------------------------------------------------------------------------
Consumer Products (6.4%)
Kimberly-Clark Corporation
6.63%, 11/29/00 4,946,982
Colgate-Palmolive Co.
6.57% - 6.59%, 10/10/00 - 10/16/00 17,460,869
--------------------------------------------------------------------------------
22,407,851
Electric and Gas Utilities (9.2%)
Duke Energy Corporation
6.58% - 6.63%, 10/19/00 - 12/08/00 16,707,163
Florida Power Corp.
6.58% - 6.62%, 10/04/00 - 10/19/00 10,330,357
Florida Power & Light Company
6.64%, 10/13/00 5,188,681
--------------------------------------------------------------------------------
32,226,201
Value
================================================================================
Electronics (3.7%)
Hewlett-Packard Company
6.59% - 6.60%, 10/17/00 - 10/18/00 $12,911,596
--------------------------------------------------------------------------------
Oil and Gas (4.6%)
Chevron Transport Corp.
6.76% - 6.78%, 01/22/01 - 03/16/01 16,147,639
--------------------------------------------------------------------------------
Personal Finance (7.7%)
American Express Credit Corporation
6.56%, 10/02/00 4,999,101
Associates Corp. of North America
6.62%, 11/09/00 9,929,800
Associates First Capital Corp.
6.64%, 10/18/00 5,542,855
CommoLoCo, Inc.
6.81%, 10/11/00 6,487,903
--------------------------------------------------------------------------------
26,959,659
Pharmaceuticals (4.2%)
Schering Corp.
6.68% - 6.70%, 12/12/00 14,804,800
--------------------------------------------------------------------------------
Telecommunications (5.2%)
AT&T Corporation
6.66% - 6.77%, 10/04/00 - 04/27/01 18,069,162
--------------------------------------------------------------------------------
Miscellaneous (7.7%)
General Dynamics Corp.
6.65% - 6.75%, 10/31/00 - 02/07/01 12,762,197
Snap-On Inc.
6.59% - 6.60%, 10/17/00 - 10/20/00 10,367,267
Wal-Mart Stores, Inc.
6.69%, 10/03/00 3,998,535
--------------------------------------------------------------------------------
27,127,999
================================================================================
Total Commercial Paper 256,333,265
================================================================================
U.S. Government Agency Issues (17.6%)
Mortgage-Backed Securities (3.2%)
Federal Home Loan Mortgage Corp.
6.44% - 7.17%, 10/01/00 - 07/01/01 7,769,148
Federal National Mortgage Association
6.08% - 6.88%, 11/01/00 - 05/01/01 3,565,216
--------------------------------------------------------------------------------
11,334,364
<PAGE>
Value
================================================================================
U.S. Government Agency Issues (cont.)
Other (14.4%)
Federal Farm Credit Banks
6.75%, 11/01/00 $839,842
Federal Home Loan Banks
6.51% - 7.00%, 10/23/00 - 06/14/01 12,528,572
Federal Home Loan Mortgage Corp.
6.54% - 7.34%, 11/22/00 - 06/08/01 19,898,462
Federal National Mortgage Association
6.40% - 6.83%, 10/10/00 - 04/23/01 16,223,747
Student Loan Marketing Association
6.67%, 12/18/00 995,975
--------------------------------------------------------------------------------
50,486,598
================================================================================
Total U.S. Government
Agency Issues 61,820,962
================================================================================
Corporate Notes (6.0%)
Personal Finance (0.6%)
Associates Corp. of North America
6.79% - 6.93%, 01/15/01 - 07/15/01 2,050,847
--------------------------------------------------------------------------------
Business Finance (4.1%)
Ford Motor Credit Company
6.46% - 6.59%, 10/06/00 - 10/10/00 9,450,046
General Electric Capital Corp.
6.97%, 05/07/01 596,370
General Motors Acceptance Corp.
6.67%, 10/20/00 2,398,360
National Rural Utilities Cooperative Finance Corp.
6.51%, 12/01/00 1,999,087
--------------------------------------------------------------------------------
14,443,863
Value
================================================================================
Miscellaneous (1.3%)
Anheuser-Busch Companies, Inc.
6.64%, 03/01/01 $1,003,097
Campbell Soup Company
6.63%, 03/15/01 1,008,530
Kimberly-Clark Corporation
6.64%, 05/01/01 1,516,600
SBC Communications, Inc.
7.07%, 06/15/01 1,010,861
--------------------------------------------------------------------------------
4,539,088
================================================================================
Total Corporate Notes 21,033,798
================================================================================
Bankers Acceptance (2.8%)
First Union National Bank
6.75%, 02/07/01 9,767,083
================================================================================
Total Investments (99.5%) 348,955,108
Cash and Other Assets,
Less Liabilities (0.5%) 1,886,823
================================================================================
Net Assets (100.0%) $350,841,931
================================================================================
Notes to Portfolio of Investments:
(a) Interest rates represent annualized yield to date of maturity on date of
purchase.
(b) For each security, cost (for financial reporting and federal income tax
purposes) and carrying value are the same. Likewise, carrying value approximates
principal amounts.
See accompanying notes to financial statements.
<PAGE>
Notes to Financial Statements
Organization:
On July 30, 1999, the Wayne Hummer Money Fund Trust was reorganized as the Wayne
Hummer Money Market Fund, a separate portfolio of Wayne Hummer Investment Trust
(the "Trust"), solely to change its form of legal entity. The Trust is an
open-end management company organized as a Massachusetts business trust. The
Trust consists of four investment portfolios, the Wayne Hummer CorePortfolio
Fund, the Wayne Hummer Growth Fund, the Wayne Hummer Income Fund and the Wayne
Hummer Money Market Fund, each operating as a separate mutual fund. Presented
herein are the financial statements of the Wayne Hummer Money Market Fund (the
"Fund"). The predecessor Fund commenced investment operations on April 2, 1982.
The Fund 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 maximize current income to the extent consistent with
preservation of capital and maintenance of liquidity.
1. Significant Accounting Policies
Security Valuation
Investments are stated at value. The Fund utilizes the amortized cost method to
determine value. In the event that a deviation of 1/2 of 1% or more exists
between a Portfolio's $1.00 per Share net asset value and the net asset value as
calculated by valuing the Portfolio securities based upon market quotations, if
available, or otherwise based upon a matrix system approved by the Board of
Trustees, or if there is any other deviation which the Fund believes would
result in a material dilution to Shareholders or purchasers, the Board of
Trustees of the Fund promptly will consider what action should be taken.
Security Transactions and Investment Income
Security transactions are accounted for on the trade date. Investment income is
recorded on the accrual basis and includes amortization of premium and discount
on investments.
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.
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 are declared daily and distributed monthly in the
form of additional Shares at net asset value unless the Shareholder elects to
have dividends paid in cash, in which case they are credited monthly to the
Shareholder's brokerage account with Wayne Hummer Investments LLC.
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"), and a Distribution Agreement and a Shareholder Service Agreement with
Wayne Hummer Investments LLC ("Distributor and Shareholder Service Agent"). The
shareholders of the Investment Adviser are the Voting Members of the Distributor
and Shareholder Service Agent. For advisory
<PAGE>
and management services and facilities furnished, the Fund pays fees on a
declining annual basis ranging from .50 of 1% on the first $500 million of
average daily net assets to .275 of 1% of average daily net assets in excess of
$2.5 billion. 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% of average daily net assets on an annual basis.
During the six month period ended September 30, 2000 and the year ended March
31, 2000, the Fund incurred management fees of $893,333 and $1,746,900,
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. The Fund reimburses the Shareholder Service Agent for the approximate
cost of processing Fund Share transactions and maintaining Shareholder accounts.
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 six month period ended September 30, 2000, and the year ended March
31, 2000, the Fund made no direct payments to its officers and incurred trustee
fees for its disinterested trustees of $17,500 and $37,250, respectively.
<PAGE>
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<PAGE>
Board of Trustees
Steven R. Becker
Chairman
Charles V. Doherty
Joel D. Gingiss
Patrick B. Long
David P. Poitras
James J. Riebandt
Eustace K. Shaw
Start Investing Today...
For further information on any of the funds or fund services or to discuss which
Fund may be appropriate for your investment needs, please contact your Wayne
Hummer Investment Executive.
Chicago Toll-free: 800-621-4477 Local: 312-431-1700
300 South Wacker Drive Chicago, Illinois 60606-6607
Appleton Toll-free: 800-678-0833 Local: 920-734-1474
200 East Washington Street Appleton, Wisconsin 54911-5468
Internet www.whummer.com
This brochure must be preceded or accompanied by a current prospectus of the
Wayne Hummer Investment Trust.
[Wayne Hummer logo} Wh Wayne Hummer(R) Investments
300 South Wacker Drive
Chicago, Illinois 60606-6607
First Class
U.S. Postage
Paid
South Suburban, IL
Permit #3600
<PAGE>
Wayne Hummer(R)
Growth Fund
[Photo of Thomas J. Rowland]
Thomas J. Rowland
Semi-Annual
Financial Statements (Unaudited)
September 30, 2000
Dear Fellow Shareholder:
This report presents the semi-annual financial statements of the Wayne Hummer
Growth Fund (the "Fund") on September 30, 2000. The net asset value of a Fund
share increased 15.1% from $37.13 on September 30, 1999 to $42.72 on September
30, 2000. If dividends as well as distributions from capital gains were
reinvested during this period, the increase was 27.8%. During this same period
the total return for the Russell Mid-Cap Index was 31.6%. For the first half of
this fiscal year the return on this same basis was -4.6%, compared to 2.0% for
the Russell Index*. During the first half of the current fiscal year, the Fund's
Board of Trustees declared a dividend of $0.01 per share and a capital gain
distribution of $2.03 payable to shareholders on April 25.
Much as we reported a year ago at this time, a very strong first half followed
by a weak second half characterized the Fund's progress again over the previous
year. Stock market participants endured extreme volatility during the past six
months, though it was most pronounced in the final month of the period. The
strong suit of the first half, technology stocks, became the albatross of the
second, overwhelming the strong showing by the Fund's healthcare and financial
stocks. This accounted for the Fund underperforming its midcap benchmark.
<PAGE>
There was a wide disparity of how the markets performed, depending on which
index one chose. This would seem to be reflective of changing market leadership
and a continuing broadening of the market from a formerly narrow base. Big cap
technology faltered while utilities, financials and healthcare were quite
strong. The technology heavy NASDAQ Index declined by almost 19% in the
semi-annual period and almost 29% from its record level of March. Midcap stock
indices, benefiting from a broadening of the market this year, outperformed
their large and smallcap counterparts.
Market participants, uncomfortable with the rallies of August, displayed their
discomfort in September. The steady decline in the euro, rising energy prices,
concern for the impact of the Fed's success in slowing the economy on corporate
profits all converged as sources of instability in the last month. As a large
number of negative pre-announcements of third earnings results unfolded, these
fears were confirmed. Most of these did cite energy costs, the euro or sluggish
European operations as culprits. Though usually a difficult month for the
markets, this September was noteworthy. The S&P 500 (a proxy for large-cap
stocks) had its steepest decline since 1986 and the NASDAQ composite had its
worst September in its 29-year history. Year 2000 just might become the first
election year that the S&P 500 Index will show a loss since 1960, when Richard
M. Nixon and John F. Kennedy vied for the Presidency.
The Euro has been in a steady decline since its introduction in January 1999.
The demand for dollars and the rise in energy prices seem to be the two most
important restraints at present. Problems with the Euro became headline news
when Intel announced that revenues would be weaker due, in part, to the
translation of European sales. However, multinational corporations don't
generally repatriate their European profits back into dollars. They reinvest
them in Europe. More important is the local currency revenue growth and,
unfortunately, Europe was struggling before the rise in oil prices, which has
only served to worsen its situation vis-a-vis the U.S. The dampened European
economy could get a boost longer term from major structural changes, such as the
move by Germany to reduce its corporate tax rate. Conversely, monetary
intervention to support the Euro will likely prove short-lived.
No one should expect this year's oil price surge to turn into a sudden supply
crisis, particularly if prices remain elevated and draw in additional supply.
Fear of an oil shock like the one 27 years ago is unfounded. Then President
Nixon instituted price and allocation controls to help curb inflation, and
maintained import quotas, during a time of increasing demand and softening
domestic supply. The Government's mishandling of the supply/demand forces then
caused a far greater effect on the economy and inflation than will the
<PAGE>
free-market stance of today. That doesn't mean that our government shouldn't
respond to OPEC's cartel power or that consumers won't feel the pinch, however.
Higher oil prices act like a tax hike on the economy, but should affect it only
marginally by slightly slowing GDP growth. In fact, if not for the ongoing oil
price impact, it is arguable that the Fed might have had to tighten credit
again. Importantly, gold prices have slipped even as crude oil prices have moved
sharply higher, an indication that market expectations for inflation remain
benign.
Despite recent wild swings in the market, we think that the environment for
equities remains ideal. It is probably more important than ever to keep a
positive long-term perspective in what appears to be a short-term world.
Demographic trends, low inflation and the budget surplus still favor the stock
market. While productivity growth may ebb and flow, it will most likely remain
strong for some time as the impact of an aging and more productive work force
continues to be felt. Low unemployment, as a result, has not become an impetus
to inflationary pressures. Over the course of the 1990s, declining inflation
expectations and interest rates occurred concurrent with the dwindling federal
budget deficit and the ultimate swing to expanding surpluses, now for three
consecutive years. The global competitive posture of the U.S. economy is
unsurpassed. All of these factors represent strong underpinnings to continued
growth in the stock market, albeit at a slower rate than that seen in the 1990s,
as the new millennium unfolds.
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 and Portfolio Manager
Wayne Hummer Investment Trust
October 25, 2000
* Past performance is no guarantee of future results. Total returns are based on
changes in net asset value. The S&P500 &Russell Mid-Cap are unmanaged portfolios
and bear no expenses.
<PAGE>
Portfolio Highlights
Top 10 Stock Holdings as of 9/30/00: (% of total net assets)
================================================================================
1. Sun Microsystems, Inc. (Computers - Hardware) 9.4%
2. Northern Trust Corporation (Banking) 7.2
3. QUALCOMM Incorporated (Communications Equipment) 6.1
4. ADC Telecommunications, Inc. (Communications Equipment) 5.6
5. Applied Materials, Inc. (Semiconductor Equipment) 5.5
6. Cardinal Health, Inc. (Distributors - Food and Health) 5.1
7. Interpublic Group of Companies, Inc. (Services - Advertising
and Marketing) 3.6
8. Illinois Tool Works Inc. (Manufacturing - Diversified) 3.2
9. CVS Corporation (Retail - Drug Stores) 2.7
10. Avery Dennison Corporation (Manufacturing - Office Supplies
and Forms) 2.5
Portfolio holdings are subject to change and may not represent future portfolio
composition.
Portfolio Changes 4/1/00 - 9/30/00
================================================================================
Share Holdings
Additions Change on 9/30/00
================================================================================
Avery Dennison Corporation 25,000 95,000
Borders Group, Inc. 30,000 120,000
Concord EFS, Inc. 60,000 60,000
The Cooper Companies, Inc. 43,000 43,000
Cintas Corporation 7,500 60,000
IDEX Corporation 50,000 50,000
Molex Inc., Class A 70,000 70,000
Photronics, Inc. 60,000 120,000
Western Wireless Corp., Class A 10,000 60,000
Share Holdings
Reductions Change on 9/30/00
================================================================================
Abbott Laboratories 50,000 - 0 -
ADC Telecommunications, Inc. 20,000 360,000
Consolidated Papers, Inc. 110,000 - 0 -
Manor Care, Inc. 40,000 - 0 -
Ohio Casulaty Corporation 10,000 70,000
Office Depot, Inc. 150,000 - 0 -
Smucker (The J.M.) Company, Class B 80,000 - 0 -
Sun Microsystems, Inc. 44,000 140,000
Wesley Jessen VisionCare, Inc. 5,000 105,000
<PAGE>
Performance Comparison
Wayne Hummer Growth Fund vs. S&P 500 Index and Russell Mid-Cap Index
Growth of $10,000 Investment for a 10 year period ended September 30, 2000
[Line Chart Here]
Wayne Hummer Russell S&P 500
Growth Fund Mid-Cap
Sep 90 10000 10000 10000
10980.5 11074.1 10887
12380.5 13341.6 12476.5
12592.2 13417.5 12421.6
Sep 91 13079.6 14411.7 13091.1
14148.8 15677.2 14188.2
14254.8 15921.4 13833.5
14152.7 15887.6 14081.1
Sep 92 15004 16506.1 14538.7
15614.7 18239 15275.8
15672.4 19230.5 15935.4
15470.5 19533.7 16000.8
Sep 93 15536.8 20579.2 16410.4
16173.5 20847.4 16902.7
15565 20231 16258.7
15377.7 19793.5 16314
Sep 94 16078.1 20919.4 17116.6
16025.7 20411.1 17113.2
17595.2 22535.6 18778.3
18047.3 24421.2 20551
Sep 95 18722.3 26586.5 22186.9
20003.3 27443.4 23520.3
20437.3 29094.8 24782.5
20810.3 29914.7 25880.4
Sep 96 21189.5 30851.7 26677.5
22379.8 32657.1 28907.7
22811.1 32389.7 29682.4
26128.3 36782.2 34856.1
Sep 97 28516.8 41666.1 37470.3
29135.2 42129.9 38550.9
32066.5 46683.1 43928.8
32077.6 45976.2 45378.4
Sep 98 28137.5 39161.7 40863.3
34248.6 46380.8 49563.1
34109.1 46161 52031.3
38228.6 51178.6 55699.5
Sep 99 35998.8 46782.2 52223.9
47320 54842.3 59989.6
48205.3 60372.4 61363.3
45565.8 57649.9 59733.2
Sep 00 46007.4 61574.2 59154.4
Annualized returns for the
following periods: 1 year 5 year 10 year
================================================================================
Wayne Hummer
Growth Fund
(assuming 2% sales charge) 25.25% 19.22% 16.49%
--------------------------------------------------------------------------------
Wayne Hummer
Growth Fund
(at net asset value) 27.80% 19.70% 16.72%
--------------------------------------------------------------------------------
Russell Mid-Cap Index 31.62% 18.29% 19.93%
--------------------------------------------------------------------------------
S & P 500 Index 13.27% 21.68% 19.42%
--------------------------------------------------------------------------------
The graph compares an initial investment of $10,000 invested in the Wayne Hummer
Growth Fund, adjusted for the maximum sales charge of 2%, with the S&P 500 and
Russell Mid-Cap Indices. The S&P 500 and Russell Mid-Cap are unmanaged and all
returns include reinvestment of dividends and capital gain distributions. 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 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
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 call the 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 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. Contact your Wayne Hummer Investment Executive for complete details.
IRA or Retirement Plans
Shares of the Wayne Hummer Growth 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 can view your account
activity online. You can also find the prospectus and current prices for the
Fund, along with daily market commentary and research information from Wayne
Hummer Investments. Contact your Investment Executive or the Fund for more
information.
Taxable Transactions for Non-Retirement Accounts
Each time you sell shares of the Fund, you must calculate the gain or loss
attributed to that transactions. 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>
Statement of Assets and Liabilities
Year ended
September 30, 2000 March 31,
(Unaudited) 2000
================================================================================
Assets
Investments, at value (Cost: $82,373,327
and $76,462,566, respectively) $174,947,343 $184,824,710
--------------------------------------------------------------------------------
Cash 36,099 79,663
--------------------------------------------------------------------------------
Receivable for investments sold 0 1,597,759
--------------------------------------------------------------------------------
Receivable for Fund Shares sold 32,653 56,729
--------------------------------------------------------------------------------
Dividends receivable 131,725 123,450
--------------------------------------------------------------------------------
Prepaid expenses 1,196 32,784
--------------------------------------------------------------------------------
Insurance deposit 3,846 3,846
================================================================================
Total assets 175,152,862 186,718,941
--------------------------------------------------------------------------------
Liabilities and Net Assets
Payable for investments purchased 789,783 854,484
--------------------------------------------------------------------------------
Payable for Fund Shares redeemed 363,658 51,776
--------------------------------------------------------------------------------
Due to Wayne Hummer Management Company 108,680 109,860
--------------------------------------------------------------------------------
Accounts payable 80,628 37,888
================================================================================
Total liabilities 1,342,749 1,054,008
================================================================================
Net assets applicable to 4,069,131 and
3,965,027 Shares outstanding, no par
value, equivalent to $42.72 and
$46.83 per Share, respectively $173,810,113 $185,664,933
================================================================================
Analysis of Net Assets
Paid-in capital $73,880,206 $69,245,362
--------------------------------------------------------------------------------
Net unrealized appreciation of investments 92,574,016 108,362,144
--------------------------------------------------------------------------------
Undistributed net realized gain on sales
of investments 7,293,053 8,021,083
--------------------------------------------------------------------------------
Undistributed net investment income 62,838 36,344
================================================================================
Net assets applicable to Shares
outstanding $173,810,113 $185,664,933
================================================================================
The Pricing of Shares
Net asset value and redemption price
per Share ($173,810,113 / 4,069,131
Shares outstanding and $185,664,933 /
3,965,027 Shares outstanding,
respectively) $42.72 $46.83
================================================================================
Maximum offering price per Share (net asset
value, plus 2.02% of net asset value
or 2% of offering price)* $43.59 $47.79
================================================================================
* Sales charge of 2% was effective August 1,1999 for new accounts.
See accompanying notes to the financial statements.
<PAGE>
Statement of Operations
Six months ended Year ended
September 30, 2000 March 31,
(Unaudited) 2000
================================================================================
Investment Income:
Dividends $738,567 $1,514,804
--------------------------------------------------------------------------------
Interest 188,755 203,717
================================================================================
Total investment income 927,322 1,718,521
--------------------------------------------------------------------------------
Expenses:
Management fee 660,256 1,162,674
--------------------------------------------------------------------------------
Professional fees 65,100 130,334
--------------------------------------------------------------------------------
Transfer agent fees 24,600 54,950
--------------------------------------------------------------------------------
Printing costs 26,559 46,266
--------------------------------------------------------------------------------
Trustee fees 18,500 24,700
--------------------------------------------------------------------------------
Custodian fees 15,781 24,700
--------------------------------------------------------------------------------
Portfolio accounting fees 15,301 23,380
--------------------------------------------------------------------------------
Registration costs 19,117 13,000
--------------------------------------------------------------------------------
Other 16,000 9,960
================================================================================
Total expenses 861,214 1,489,964
================================================================================
Net investment income 66,108 228,557
--------------------------------------------------------------------------------
Net realized gain on sales of investments 7,313,638 17,348,361
--------------------------------------------------------------------------------
Change in unrealized appreciation (15,788,128) 37,667,702
================================================================================
Net gain (loss) on investments (8,474,490) 55,016,063
================================================================================
Net increase (decrease) in net assets
resulting from operations ($8,408,382) $55,244,620
================================================================================
See accompanying notes to financial statements.
<PAGE>
Statement of Changes in Net Assets
Six months ended Year ended
September 30, 2000 March 31,
(Unaudited) 2000
================================================================================
Operations:
Net investment income $66,108 $228,557
--------------------------------------------------------------------------------
Net realized gain on sales of investments 7,313,638 17,348,361
--------------------------------------------------------------------------------
Change in net unrealized appreciation (15,788,128) 37,667,702
================================================================================
Net increase (decrease) in net assets
resulting from operations (8,408,382) 55,244,620
--------------------------------------------------------------------------------
Dividends to Shareholders from:
Net investment income (39,614) (279,121)
--------------------------------------------------------------------------------
Net realized gain on investments (8,041,668) (15,091,239)
================================================================================
Total dividends to Shareholders (8,081,282) (15,370,360)
--------------------------------------------------------------------------------
Capital Share transactions:
Proceeds from Shares sold 3,825,466 9,071,553
--------------------------------------------------------------------------------
Shares issued upon reinvestment
of dividends 7,721,298 14,720,172
================================================================================
11,546,764 23,791,725
--------------------------------------------------------------------------------
Less payments for Shares redeemed 6,911,920 17,494,746
================================================================================
Increase from Capital Share transactions 4,634,844 6,296,979
================================================================================
Total increase (decrease) in net assets (11,854,820) 46,171,239
--------------------------------------------------------------------------------
Net assets
Beginning of period 185,664,933 139,493,694
================================================================================
End of period (including undistributed
net investment income of $62,838
and $36,344, respectively) $173,810,113 $185,664,933
================================================================================
See accompanying notes to financial statements.
<PAGE>
Financial Highlights
(For a Share outstanding throughout each period)
Six months ended
September 30, 2000 Year ended March 31,
(Unaudited) 2000 1999 1998 1997
================================================================================
Net asset value,
beginning of period $46.83 $36.66 $36.10 $28.03 $26.37
--------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.02 0.06 0.14 0.19 0.26
--------------------------------------------------------------------------------
Net realized and unrealized gains
on investments (2.09) 14.17 2.09 10.57 2.69
================================================================================
Total from investment operations (2.07) 14.23 2.23 10.76 2.95
--------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.01) (0.07) (0.16) (0.20) (0.29)
--------------------------------------------------------------------------------
Distributions from net realized gains
on investments (2.03) (3.99) (1.51) (2.49) (1.00)
================================================================================
Total distributions (2.04) (4.06) (1.67) (2.69) (1.29)
================================================================================
Net asset value, end of period $42.72 $46.83 $36.66 $36.10 $28.03
================================================================================
Total Return (b) (4.56%) 41.33% 6.37% 40.57% 11.61%
--------------------------------------------------------------------------------
Ratios and Supplementary Data
Net assets, end of period ($000's) 173,810 185,665 139,494 140,743 104,214
--------------------------------------------------------------------------------
Ratio of expenses to average
net assets 0.96%(a) 0.95% 0.94% 0.96% 0.99%
--------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 0.07%(a) 0.15% 0.41% 0.58% 0.97%
--------------------------------------------------------------------------------
Portfolio turnover rate 6% 10% 12% 7% 9%
--------------------------------------------------------------------------------
Notes to Financial Highlights:
a.) Determined on an annualized basis.
b.) Excludes 2% sales charge which went into effect August 1, 1999.
See accompanying notes to financial statements.
<PAGE>
Portfolio of Investments
September 30, 3000 (Unaudited)
Number of Shares Value
================================================================================
Common Stocks (97.2%)
Basic Materials (1.8%)
RPM, Inc. 125,000 $1,132,813
Sonoco Products Company 110,000 1,986,875
--------------------------------------------------------------------------------
3,119,688
Consumer Cyclical (11.6%)
Autoliv, Inc. 40,920 797,940
H&R Block, Inc. 60,000 2,223,750
Borders Group, Inc. (b) 120,000 1,672,500
Cintas Corporation 60,000 2,613,750
Devry, Inc. (b) 25,000 940,625
The Gap, Inc. 75,000 1,509,375
Interpublic Group of Companies, Inc. 185,000 6,301,562
LA-Z-Boy Incorporated 110,000 1,601,875
Royal Caribbean Cruises Ltd. 100,000 2,574,000
--------------------------------------------------------------------------------
20,235,377
Energy (1.3%)
Burlington Resources, Inc. 60,000 2,208,750
--------------------------------------------------------------------------------
Capital Goods (16.2%)
Avery Dennison Corporation 95,000 4,405,625
Bacou USA, Inc. (b) 65,000 1,685,937
Emerson Electric Co. 50,000 3,350,000
Fastenal Company 70,000 4,033,750
IDEX Corporation 50,000 1,396,875
Illinois Tool Works Inc. 100,000 5,587,500
Molex Incorporated Class A 70,000 2,900,625
Pall Corporation 120,000 2,392,500
Regal-Beloit Corporation 100,000 1,696,000
Thomas & Betts Corporation 40,000 697,500
--------------------------------------------------------------------------------
28,146,312
Communication Services (1.2%)
Western Wireless Corporation Class A (b) 60,000 2,137,500
--------------------------------------------------------------------------------
Number of Shares Value
================================================================================
Health Care and Pharmaceuticals (15.9%)
C. R. Bard, Inc. 60,000 $2,535,000
Cardinal Health, Inc. 100,000 8,818,750
The Cooper Companies, Inc. 43,000 1,521,125
Health Management Associates, Inc. (b) 120,000 2,497,500
Patterson Dental Company (b) 150,000 3,375,000
Sybron International Corporation (b) 75,000 1,800,000
STERIS Corporation (b) 60,000 720,000
Watson Pharmaceuticals, Inc. (b) 35,000 2,270,625
Wesley Jessen VisionCare, Inc. (b) 105,000 4,035,938
--------------------------------------------------------------------------------
27,573,938
Financials (12.9%)
AON Corporation 67,500 2,649,375
Cincinnati Financial Corporation 90,000 3,195,000
Northern Trust Corporation 140,000 12,442,500
Ohio Casualty Corporation 70,000 444,062
Old Republic International Corporation 150,000 3,609,375
--------------------------------------------------------------------------------
22,340,312
Consumer Staples (6.0%)
CVS Corporation 100,000 4,631,250
McCormick & Company, Incorporated 100,000 2,975,000
PepsiCo, Inc. 60,000 2,760,000
--------------------------------------------------------------------------------
10,366,250
Technology (30.3%)
ADC Telecommunications, Inc. (b) 360,000 9,680,625
Applied Materials, Inc. (b) 160,000 9,490,000
Concord EFS, Inc. (b) 60,000 2,130,938
Kronos Incorporated (b) 60,000 1,800,000
Photronics, Inc. (b) 120,000 2,617,500
QUALCOMM Incorporated (b) 150,000 10,687,500
Sun Microsystems, Inc. (b) 140,000 16,345,000
--------------------------------------------------------------------------------
52,751,563
================================================================================
Total Common Stocks
(Cost: $76,305,674) 168,879,690
================================================================================
<PAGE>
Number of Shares Value
================================================================================
Short-Term Investments (3.5%)
Federal Home Loan Bank
6.48%, 10/06/00 $2,248,006
United States Treasury Bills
5.99% - 6.48%,
10/05/00 - 11/09/00 3,819,647
================================================================================
Total Short-Term Investments
(Cost: $6,067,653) 6,067,653
================================================================================
Value
================================================================================
Total Investments
(Cost: $82,373,327) (100.7%) $174,947,343
Cash and Other Assets,
Less Liabilities (-0.7%) (1,137,230)
================================================================================
Net Assets (100.0%) $173,810,113
================================================================================
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 $82,373,327 for federal income tax
purposes at September 30, 2000, the aggregate gross unrealized appreciation was
$97,918,647, the aggregate gross unrealized depreciation was $5,344,631 and the
net unrealized appreciation of investments was $92,574,016.
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 four
investment portfolios, Wayne Hummer CorePortfolio Fund, Wayne Hummer Growth
Fund, Wayne Hummer Income Fund and Wayne Hummer Money Market 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.
<PAGE>
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.
2. Fund Share Valuation and Dividends to Shareholders
Prior to August 1, 1999, the Fund Shares were sold and redeemed on a continuous
basis at net asset value. Effective August 1, 1999, the Fund Shares are sold
subject to a 2% sales charge for new accounts opened after this date. Net asset
value per Share is determined on each day the New York Stock Exchange is open as
of the close of regular trading on the Exchange 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
Share-holder requests payment in cash. Dividends payable to Shareholders are
recorded by the Fund on the ex-dividend date. On October 20, 2000, an ordinary
income dividend of $0.01 per Share was declared, payable October 23, 2000, to
Shareholders of record on October 19, 2000.
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"). 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,
exceeds 1.50% of the average daily net assets of the Fund. During the period
ended September 30, 2000 and the year ended March 31, 2000, the Fund incurred
management fees of $660,256 and $1,162,674, 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.
The shareholders of the Investment Adviser are the Voting Members of Wayne
Hummer Investments LLC ("WHI"). WHI serves as Shareholder Service Agent without
compensation from the Fund. WHI also serves as Distributor and received
commissions of $37,516 and $27,740 from the sale of Fund Shares during the
period ended September 30, 2000 and the year ended March 31, 2000, respectively,
all of which were paid to brokers affiliated with the Distributor.
Certain trustees of the Fund are also officers or directors of the Investment
Adviser or Voting Members of WHI. During the period ended September 30, 2000 and
the year ended March 31, 2000, the Fund made no direct payments to its officers
and incurred trustee fees for its disinterested trustees of $18,500 and $24,700,
respectively.
<PAGE>
5. Investment Transactions
Investment transactions (excluding money market instruments) are as follows:
Six months Year
ended ended
September 30, March 31,
2000 2000
================================================================================
Purchases $11,061,646 $15,997,325
--------------------------------------------------------------------------------
Proceeds from sales $15,793,231 $26,012,048
--------------------------------------------------------------------------------
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 Year
ended ended
September 30, March 31,
2000 2000
================================================================================
Shares sold 87,571 224,355
--------------------------------------------------------------------------------
Shares issued upon
reinvestment of dividends 174,967 376,093
================================================================================
262,538 600,448
--------------------------------------------------------------------------------
Shares redeemed (158,434) (440,343)
================================================================================
Net increase in
Shares outstanding 104,104 160,105
================================================================================
7. Federal Tax Status of 2000 Dividends
The income dividends and short-term capital gain distributions are 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 2000 qualifies for the dividends-received deduction
available to corporations as provided by the Internal Revenue Code.
<PAGE>
This Page Intentionally Left Blank.
<PAGE>
Board of Trustees
Steven R. Becker
Chairman
Charles V. Doherty
Joel D. Gingiss
Patrick B. Long
David P. Poitras
James J. Riebandt
Eustace K. Shaw
Start Investing Today...
For further information on any of the funds or fund services or to discuss which
Fund may be appropriate for your investment needs, please contact your Wayne
Hummer Investment Executive.
Chicago Toll-free: 800-621-4477 Local: 312-431-1700
300 South Wacker Drive Chicago, Illinois 60606-6607
Appleton Toll-free: 800-678-0833 Local: 920-734-1474
200 East Washington Street Appleton, Wisconsin 54911-5468
Internet www.whummer.com
This brochure must be preceded or accompanied by a current prospectus of the
Wayne Hummer Investment Trust.
[Wayne Hummer Logo] Wh Wayne Hummer (R) Investments
300 South Wacker Drive
Chicago, Illinois 60606-6607
First Class
U.S. Postage
Paid
South Suburban, IL
Permit #3600
<PAGE>
WAYNE HUMMER(R)
INCOME FUND
[Photo of David P. Poitras]
DAVID P. POITRAS
SEMI-ANNUAL
FINANCIAL STATEMENTS (UNAUDITED)
September 30, 2000
DEAR FELLOW SHAREHOLDER:
The following discussion with portfolio manager David P. Poitras details the
investment environment and strategies that affected the Wayne Hummer Income Fund
(the Fund) over the past six months. Mr. Poitras has been the Fund's portfolio
manager since its inception on December 1, 1992. He also manages the Wayne
Hummer Money Market Fund portfolio.
PLEASE DESCRIBE THE RECENT INVESTMENT CLIMATE FOR FIXED INCOME SECURITIES.
The performance of the bond markets has been strong over recent
months--especially compared to last year's dreadful showing. Government notes,
bonds and mortgage-backed securities have performed particularly well. The
corporate bond market has struggled recently, but it too has produced positive
results.
WHY DID THE BOND MARKETS PERFORM SO POORLY LAST YEAR, YET SO WELL THIS YEAR?
The Federal Reserve Bank increased short-term interest rates six times--for a
total of 1.75 percent--between June, 1999 and May, 2000. The Fed pushed
short-term interest rates to 6.50%; long-term treasury bond rates peaked in
mid-January at 6.75%. The Fed's goal was to slow the economy enough to quash
inflationary pressures, but not so
<PAGE>
much as to push the economy into a recession. Initially--meaning the latter half
of 1999--the bond markets reacted negatively to the interest rate hikes.
This year--the first three quarters of 2000, interest rates on treasury
securities fell sharply, pushing prices higher. Two-year notes now yield 5.95%;
30-year bonds yield 5.90%. The bond markets rallied for two reasons. First,
economic indicators began pointing toward a slowdown. As a result, the Fed has
not changed interest rates since May. Second, the Treasury Department began
aggressively repurchasing outstanding treasury notes and bonds. Investors
responded to the reduced supply of treasuries by pushing prices higher.
HOW DID THE WAYNE HUMMER INCOME FUND PERFORM IN THIS ENVIRONMENT?
Over the past six months, the Fund paid income dividends of $0.43 per share. At
quarter-end, the SEC yield of the Fund was 6.42%. The Fund's share price ended
the quarter at $14.75, up from $14.65 at March 31, 2000.
For the six-month and one-year periods ended September 30, 2000, the Fund
produced total returns--that's dividend income plus or minus changes in the
Fund's share price--of 3.69% and 5.55%, respectively.
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE?
Bond performance--or total return--is determined by two components: interest
income and price change. Overall, the income generated from the Fund's portfolio
of notes and bonds produced the greatest impact on the Fund's total return
during the past six months. The price changes were mixed. The Fund's treasury
holdings rose in price, while the corporate holdings fell modestly.
YOU SAID THE CORPORATE BOND MARKET HAS STRUGGLED RECENTLY. PLEASE EXPLAIN.
As the economy slows, earnings of many companies will decline. Earnings provide
the major source of creditor protection. So as earnings fall, credit quality
also falls and bond buyers then demand higher yields, or lower bond prices.
WHY DOES THE FUND HOLD CORPORATE ISSUES?
Corporate notes and bonds often provide high yields and good performance, so we
typically allocate a heavy weighting of the Fund's holdings to these issues. At
quarter end, 56% of the Funds holdings were corporate issues, down from 60% six
months earlier. We reduced the corporate allocation in favor of U.S. treasury
and agency issues.
<PAGE>
DID YOU MAKE OTHER CHANGES TO THE PORTFOLIO OVER THE RECENT PAST?
Yes. While interest rates were falling, we extended the duration of the
portfolio to 4.41 years from 4.31 years. Duration is a measure of the
portfolio's sensitivity to interest rate changes. Generally, when interest rates
fall, longer-duration portfolios produce a greater rise in value than
shorter-duration portfolios. By extending the portfolio's duration, our goal was
to lock in higher yields for longer periods of time. We did this, primarily,
through the purchase of intermediate and longer-term U.S. treasury and agency
issues.
WHAT STRATEGIES WILL YOU MOST LIKELY FOLLOW OVER THE NEXT FEW MONTHS?
We hold a neutral interest rate forecast at this time. The treasury
market remains strong on the belief that: 1) the Federal Reserve Bank will not
increase short-term interest rates further; 2) economic activity will continue
to slow; and 3) the Department of Treasury will continue to repurchase treasury
notes and bonds. We believe the treasury market will hold on to this year's
gains, but further increases in bond prices seem unlikely at this time. As a
result, we do not expect to change the duration of the portfolio significantly
from its current level.
One sector that may soon offer particular value is the corporate bond market. As
mentioned, this market has struggled recently under the weight of the slowing
economy. If the corporate sell-off accelerates, we will look for opportunities
to increase the Fund's exposure to corporate notes and bonds.
Sincerely,
/s/ David P. Poitras
David P. Poitras
Portfolio Manager
October 17, 2000
<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 9/30/00: (% of total net asset)
================================================================================
1. United States Treasury Note, 7.50%, 11/15/16
2. United States Treasury Note, 6.13%, 08/15/07
3. Federal Home Loan Mortgage Corp., 8.00%, 03/15/21
4. United Airlines, Inc., 9.76%, 05/27/06
5. Federal Home Loan Mortgage Corp., 7.10%, 04/10/07
6. NYNEX Corp., 9.55%, 05/01/10
7. Canadian Pacific Ltd., 8.85%, 06/01/22
8. Federal Home Loan Mortgage Corp., 8.00%, 04/15/22
9. Federal National Mortgage Association, 8.00%, 02/25/07
10. Georgia Pacific Corp., 9.50%, 05/15/22
The top ten holdings represent 46% of total net assets.
PORTFOLIO COMPOSITION AS OF 9/30/00: (% of total net asset)
================================================================================
[PIE CHART HERE]
56% CORPORATE BONDS
22% U.S. GOVERNMENT AND AGENCY BONDS
18% MORTGAGE-BACKED SECURITIES
1% PREFERRED STOCK
3% CASH & OTHER
Portfolio holdings are subject to change and may not represent future portfolio
composition.
<PAGE>
PERFORMANCE COMPARISON
WAYNE HUMMER INCOME FUND VS. MERRILL LYNCH CORPORATE AND GOVERNMENT INDEX OF
1 TO 9.99 YEAR MATURITIES
Value of $10,000 initial investment from inception through September 30, 2000.
LINE CHART:
INCOME MERRILL
FUND LYNCH
Dec 92 9936.1 10130.2
Mar 93 10327.7 10531.1
Jun 93 10630.4 10751.2
Sep 93 10969 11004.3
Dec 93 10998.5 11022.5
Mar 94 10783.7 10812
Jun 94 10615.6 10750.9
Sep 94 10644.7 10836.5
Dec 94 10727.2 10831.1
Mar 95 11232 11303.2
Jun 95 11749.8 11867.8
Sep 95 11996 12062.4
Dec 95 12394.1 12490.9
Mar 96 12219.6 12389.2
Jun 96 12288.6 12462.1
Sep 96 12469 12680.8
Dec 96 12828.1 12993.3
Mar 97 12747.9 12986.6
Jun 97 13190.9 13368.1
Sep 97 13615 13728.6
Dec 97 13985.7 14024.8
Mar 98 14182.6 14249.4
Jun 98 14453.6 14517.6
Sep 98 14995 15157.7
Dec 98 15016.5 15211.8
Mar 99 14855.4 15183.8
Jun 99 14762.3 15123.2
Sep 99 14889 15266.9
Dec 99 14848.4 15282.4
Mar 00 15156.6 15509.1
Jun 00 15288 15766.7
Sep 00 15714 16215.1
AVERAGE ANNUAL TOTAL RETURN
================================================================================
WAYNE HUMMER INCOME FUND
================================================================================
Period Ended At net Maximum 1%
9/30/00 asset value Sales Charge
1 Year 5.55% 4.49%
--------------------------------------------------------------------------------
5 Years 5.55% 5.34%
--------------------------------------------------------------------------------
12/1/92-9/30/00 6.08% 5.94%
--------------------------------------------------------------------------------
================================================================================
MERRILL LYNCH CORPORATE AND GOVERNMENT INDEX OF 1 TO 9.99 YEARS
================================================================================
Period Ended
9/30/00
1 Year 6.21%
--------------------------------------------------------------------------------
5 Years 6.09%
--------------------------------------------------------------------------------
12/1/92-9/30/00 6.37%
--------------------------------------------------------------------------------
Note: This graph compares an initial $10,000 investment in Wayne Hummer Income
Fund on December 1, 1992, adjusted for the maximum sales charge of 1%, 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.
<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 financial institution can send money from your account to the Fund.
Request an application with full details from your Investment Executive or call
the 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. Contact your Wayne Hummer Investment Executive for
complete details.
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 can view your account
activity online. You can also find the prospectus and current prices for the
Fund, along with daily market commentary and research information from Wayne
Hummer Investments. Contact your Investment Executive or the Fund for more
information.
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>
STATEMENT OF ASSETS AND LIABILITIES
================================================================================
SEPTEMBER 30, 2000 MARCH 31,
(UNAUDITED) 2000
================================================================================
ASSETS
Investments, at value (Cost: $17,357,805 $16,900,066 $17,787,686
and $18,396,914, respectively)
--------------------------------------------------------------------------------
Cash 13,565 43,323
--------------------------------------------------------------------------------
Interest receivable 310,420 317,488
--------------------------------------------------------------------------------
Receivable for Fund Shares sold 126 211
--------------------------------------------------------------------------------
Receivable for investments sold 207,692 346
--------------------------------------------------------------------------------
Prepaid expenses 15,078 18,221
================================================================================
Total assets 17,446,947 18,167,275
--------------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
Payable for Fund Shares redeemed 0 100,015
--------------------------------------------------------------------------------
Payable for investment purchased 204,066 0
--------------------------------------------------------------------------------
Dividends payable 11,486 8,094
--------------------------------------------------------------------------------
Due to Wayne Hummer Management Company 7,049 7,672
--------------------------------------------------------------------------------
Accounts payable 9,291 18,579
================================================================================
Total liabilities 231,892 134,360
================================================================================
Net assets applicable to 1,166,801 and
1,230,531 Shares outstanding, no par
value, equivalent to $14.75 and $14.65
per Share, respectively $17,215,055 $18,032,915
================================================================================
ANALYSIS OF NET ASSETS
Paid-in capital $18,529,105 $19,456,215
--------------------------------------------------------------------------------
Net unrealized depreciation of investments (457,739) (609,228)
--------------------------------------------------------------------------------
Accumulated net realized loss on
sales of investments (856,311) (814,072)
================================================================================
Net assets applicable to Shares
outstanding $17,215,055 $18,032,915
================================================================================
THE PRICING OF SHARES
Net asset value and redemption price per
Share ($17,215,055 / 1,166,801 Shares
outstanding and $18,032,915 / 1,230,531
Shares outstanding, respectively) $14.75 $14.65
================================================================================
Maximum offering price per share (net asset
value, plus 1.01% of net asset value
or 1% of offering price)* $14.90 $14.80
================================================================================
*Sales charge of 1% was effective August 1, 1999 for new accounts opened.
See accompanying notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS
================================================================================
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31,
(UNAUDITED) 2000
================================================================================
INVESTMENT INCOME:
Interest $605,655 $1,304,350
--------------------------------------------------------------------------------
Dividends 5,700 0
================================================================================
Total investment income 611,355 1,304,350
--------------------------------------------------------------------------------
EXPENSES:
Management fee 43,693 95,654
--------------------------------------------------------------------------------
Professional fees 8,773 32,371
--------------------------------------------------------------------------------
Transfer agent fees 11,436 23,086
--------------------------------------------------------------------------------
Portfolio accounting fees 8,114 17,313
--------------------------------------------------------------------------------
Printing costs 5,600 8,504
--------------------------------------------------------------------------------
Registration costs 6,600 7,378
--------------------------------------------------------------------------------
Custodian fees 3,900 7,100
--------------------------------------------------------------------------------
Trustee fees 1,866 3,200
--------------------------------------------------------------------------------
Other 900 1,840
================================================================================
Total expenses 90,882 196,446
================================================================================
Net investment income 520,473 1,107,904
--------------------------------------------------------------------------------
Net realized loss on sales of investments (44,517) (47,407)
--------------------------------------------------------------------------------
Change in net unrealized depreciation 151,489 (708,313)
================================================================================
Net realized and unrealized gain (loss)
on investments 106,972 (755,720)
--------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $627,445 $352,184
================================================================================
See accompanying notes to financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
================================================================================
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2000 MARCH 31,
(UNAUDITED) 2000
================================================================================
OPERATIONS:
Net investment income $520,473 $1,107,904
--------------------------------------------------------------------------------
Net realized loss on sales of investments (44,517) (47,407)
--------------------------------------------------------------------------------
Change in net unrealized depreciation 151,489 (708,313)
================================================================================
Net increase in net assets resulting
from operations 627,445 352,184
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (518,195) (1,086,195)
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares sold 179,776 1,522,907
--------------------------------------------------------------------------------
Shares issued upon reinvestment of dividends 392,910 836,426
================================================================================
572,686 2,359,333
--------------------------------------------------------------------------------
Less payments for Shares redeemed 1,499,796 3,919,788
================================================================================
Decrease from Capital Share transactions (927,110) (1,560,455)
================================================================================
Total decrease in net assets (817,860) (2,294,466)
--------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 18,032,915 20,327,381
================================================================================
End of period $17,215,055 $18,032,915
================================================================================
See accompanying notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
(For a Share outstanding throughout each period)
================================================================================
SIX MONTHS ENDED
SEPTEMBER 30, 2000 YEAR ENDED MARCH 31,
(UNAUDITED) 2000 1999 1998 1997
================================================================================
NET ASSET VALUE, BEGINNING
OF PERIOD $14.65 $15.21 $15.38 $14.66 $14.95
--------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.43 0.90 0.89 0.94 0.92
--------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 0.10 (0.56) (0.17) 0.72 (0.29)
================================================================================
Total from investment operations 0.53 0.34 0.72 1.66 0.63
--------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.43) (0.90) (0.89) (0.94) (0.92)
--------------------------------------------------------------------------------
Dividends from net realized gain
on investments - - - - -
================================================================================
Total distributions (0.43) (0.90) (0.89) (0.94) (0.92)
--------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $14.75 $14.65 $15.21 $15.38 $14.66
================================================================================
TOTAL RETURN (b) 3.69% 2.03% 4.74% 11.25% 4.32%
--------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTARY DATA
Net assets,
end of period (000's) $17,215 $18,033 $20,327 $21,304 $21,998
--------------------------------------------------------------------------------
Ratio of expenses to average
net assets 1.04%(a) 1.02% 1.01% 1.01% 1.01%
--------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 5.96%(a) 5.78% 5.78% 6.00% 6.25%
--------------------------------------------------------------------------------
Portfolio turnover rate 10% 11% 37% 28% 39%
--------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS:
(a) Determined on an annualized basis.
(b) Excludes 1% sales charge.
See accompanying notes to financial statements.
<PAGE>
Portfolio of Investments
September 30, 2000 (Unaudited)
Principal Amount Value
================================================================================
Corporate Obligations (55.6%)
Auto & Machinery (5.3%)
Johnson Controls, Inc.,
7.70%, 03/01/15 $410,000 $419,455
Parker-Hannifin Corporation,
9.75%, 02/15/21 480,000 503,179
--------------------------------------------------------------------------------
922,634
Banks & Finance (8.3%)
Ford Motor Credit Company,
6.13%, 01/09/06 500,000 472,405
Norwest Corporation, 7.65%,
03/15/05 360,000 368,438
St. Paul Bancorp, Inc., 7.13%,
02/15/04 100,000 98,353
Sears Roebuck Acceptance
Corp., 6.75%, 09/15/05 500,000 485,285
--------------------------------------------------------------------------------
1,424,481
Insurance (3.2%)
American General Corp.,
7.75%, 04/01/05 285,000 290,492
Continental Corp., 7.25%,
03/01/03 260,000 254,665
--------------------------------------------------------------------------------
545,157
Oil and Gas (4.0%)
Northwest Natural Gas
Company, 6.80%, 05/21/07 200,000 201,496
Pennzoil Company, 10.25%,
11/01/05 436,000 482,273
--------------------------------------------------------------------------------
683,769
Paper & Forest Products (5.7%)
Champion International
Corporation, 6.40%,
02/15/26 500,000 473,465
Georgia Pacific Corporation,
9.50%, 05/15/22 500,000 506,335
--------------------------------------------------------------------------------
979,800
Telecommunications (4.6%)
Mountain States Telephone
& Telegraph Co.,
5.50%, 06/01/05 269,000 251,321
NYNEX Corporation, 9.55%,
05/01/10 507,788 542,577
--------------------------------------------------------------------------------
793,898
================================================================================
Principal Amount Value
================================================================================
Transportation (10.9%)
Canadian Pacific Limited,
8.85%, 06/01/22 $500,000 $530,545
Union Pacific Corporation,
6.13%, 01/15/04 500,000 482,070
United Air Lines, Inc., 9.76%,
05/27/06 820,858 857,936
--------------------------------------------------------------------------------
1,870,551
Other (13.6%)
Browning-Ferris Industries,
Inc., 6.38%, 01/15/08 500,000 393,820
Crown, Cork & Seal Company,
Inc., 8.38%, 01/15/05 400,000 369,304
Eastman Kodak Company,
9.75%, 10/01/04 428,000 468,005
Inco Ltd., Convertible
Debenture, 7.75%,
03/15/16 500,000 449,375
Ingersoll-Rand Company,
6.02%, 02/15/28 500,000 496,785
Union Carbide Corp., 6.79%,
06/01/25 170,000 167,661
--------------------------------------------------------------------------------
2,344,950
--------------------------------------------------------------------------------
Total Corporate Obligations
(Cost: $9,930,721) 9,565,240
--------------------------------------------------------------------------------
Municipality - Taxable (1.5%)
Virginia State Housing
Development Authority, 7.95%,
05/01/13 (Cost: $254,513) 250,000 257,960
--------------------------------------------------------------------------------
Mortgage-Backed Securities (18.0%)
Collateralized Mortgage Obligations (15.2%)
Federal Home Loan Mortgage Corporation (12.3%)
7.50%, 11/15/08 500,000 500,840
8.50%, 05/01/17 131,410 135,722
8.00%, 03/15/21 960,821 971,428
8.00%, 04/15/22 500,000 509,110
--------------------------------------------------------------------------------
2,117,100
Federal National Mortgage Association (2.9%)
8.00%, 02/25/07 500,000 508,070
--------------------------------------------------------------------------------
<PAGE>
Principal Amount Value
================================================================================
Federal National
Mortgage Association (2.3%)
10.50%, 01/01/16 $35,238 $37,984
10.50%, 06/01/19 90,045 97,260
9.00%, 12/01/19 52,502 54,073
8.50%, 06/25/21 95,373 98,256
8.00%, 12/01/22 103,553 104,841
--------------------------------------------------------------------------------
392,414
Government National
Mortgage Association (0.5%)
9.00%, 02/20/27 82,990 84,749
--------------------------------------------------------------------------------
Total Mortgage-Backed Securities
(Cost: $3,149,204) 3,102,333
--------------------------------------------------------------------------------
U.S. Government and Agency Issues (22.3%)
Federal National Mortgage Association
7.13%, 02/15/05 350,000 357,500
Federal Home Loan Mortgage Corp.
7.10%, 04/10/07 750,000 768,030
U.S. Treasury Note, 6.13%,
08/15/07 1,275,000 1,288,541
U.S. Treasury Note, 7.50%,
11/15/16 $1,250,000 1,424,212
--------------------------------------------------------------------------------
Total U.S. Government and Agency Issues
(Cost: $3,898,917) 3,838,283
--------------------------------------------------------------------------------
================================================================================
Principal Amount Value
================================================================================
Preferred Stock (0.8%)
Harris Preferred Capital
Corporation, 7.38% 4,000 $88,000
Virginia Power Capital
Trust I, 8.05% 2,000 48,250
--------------------------------------------------------------------------------
Total Preferred Stock
(Cost: $124,450) 136,250
--------------------------------------------------------------------------------
Total Investments (98.2%)
(Cost: $17,357,805) 16,900,066
Cash and Other Assets,
Less Liabilities (1.8%) 314,989
--------------------------------------------------------------------------------
Net Assets (100.0%) $17,215,055
================================================================================
NOTE TO PORTFOLIO OF INVESTMENTS:
(a) Based on the cost of investments of $17,357,805 for federal income tax
purposes at September 30, 2000, the aggregate gross unrealized appreciation was
$58,495, the aggregate gross unrealized depreciation was $516,234 and the net
unrealized depreciation of investments was $457,739.
NOTES TO FINANCIAL STATEMENTS
ORGANIZATION:
Wayne Hummer Investment Trust (the "Trust") is an open-end management company
organized as a Massachusetts business trust. The Trust consists of four
investment portfolios, Wayne Hummer CorePortfolio Fund, Wayne Hummer Growth
Fund, Wayne Hummer Income Fund and Wayne Hummer Money Market 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 capital 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
market 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 deter-
<PAGE>
mined 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 might 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.
2. FUND SHARE VALUATION AND DIVIDENDS TO SHAREHOLDERS
Prior to August 1, 1999, the Fund Shares were sold on a continuous basis at net
asset value. Effective August 1, 1999, the Fund Shares are sold subject to a 1%
sales charge for new accounts opened after this date. 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 daily 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.
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, 2000, amounting to $814,072, is available to offset future
capital gains. If not applied, $594,108 of the loss carry forward expires in
2003, $51,741 expires in 2004, $129,493 expires in 2005 and $38,730 expires in
2006.
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"). 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 Fundordinary operating expenses,
including the fee of the Investment Adviser, exceed 1.50% of the average daily
net assets of the Fund. During the six month period ended September 30, 2000 and
the year ended March 31, 2000, the Fund incurred management fees of $43,693 and
$95,654, 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.
The shareholders of the Investment Adviser are the Voting Members of Wayne
Hummer Investments LLC ("WHI"). WHI serves as Shareholder Service Agent without
compensation from the Fund. WHI also serves as Distributor and received
commissions of $684 and $5,518 from the sale of Fund Shares during the period
ended September 30, 2000, and the year ended March 31, 2000, all of which were
paid to brokers affiliated with the Distributor.
Certain trustees of the Fund are also officers or directors of the Investment
Adviser or Voting Members of WHI. During the period ended September 30, 2000 and
the year ended March 31, 2000, the Fund made no direct payments to its officers
and incurred trustee fees for its
<PAGE>
disinterested trustees of $1,866 and $3,200, respectively.
5. INVESTMENT TRANSACTIONS
Investment transactions (excluding money market instruments) are as follows:
=====================================================
SIX MONTHS YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2000 2000
=====================================================
Purchases $1,724,230 $2,137,391
-----------------------------------------------------
Proceeds from sales $2,677,674 $2,831,291
-----------------------------------------------------
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 YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2000 2000
=====================================================
Shares sold 12,371 102,410
-----------------------------------------------------
Shares issued upon
reinvestment of dividends 26,948 56,650
=====================================================
39,319 159,060
-----------------------------------------------------
Shares redeemed (103,049) (265,402)
=====================================================
Net decrease in
Shares outstanding (63,730) (106,342)
=====================================================
7. FEDERAL TAX STATUS OF 2000 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 accord- ance with the U.S. Treasury Department regulations.
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE>
BOARD OF TRUSTEES
Steven R. Becker
Chairman
Charles V. Doherty
Joel D. Gingiss
Patrick B. Long
David P. Poitras
James J. Riebandt
Eustace K. Shaw
START INVESTING TODAY...
For further information on any of the funds or fund services or to discuss which
Fund may be appropriate for your investment needs, please contact your Wayne
Hummer Investment Executive.
CHICAGO Toll-free: 800-621-4477 Local: 312-431-1700
300 South Wacker Drive Chicago, Illinois 60606-6607
APPLETON Toll-free: 800-678-0833 Local: 920-734-1474
200 East Washington Street Appleton, Wisconsin 54911-5468
INTERNET www.whummer.com
This brochure must be preceded or accompanied by a current prospectus of the
Wayne Hummer Investment Trust.
[Wayne Hummer Logo] Wh Wayne Hummer (R) Investments
300 South Wacker Drive
Chicago, Illinois 60606-6607
First Class
U.S. Postage
PAID
South Suburban, IL
Permit #3600
<PAGE>
Wayne Hummer(R)
CorePortfolio Fund
[Photo of Thomas J. Rowland]
Thomas J. Rowland
[Photo of David D. Cox]
David D. Cox
Semi-Annual
Financial Statements (Unaudited)
September 30, 2000
Dear Fellow Shareholder:
We are pleased to present the semi-annual financial statements of the Wayne
Hummer CorePortfolio Fund (the "Fund") for the period ended September 30, 2000.
The net asset value of a Fund share increased 7.3% from $9.52 on September 30,
1999 to $10.21 on September 30, 2000. If dividends were reinvested during this
period, the increase was 7.4%. During this same period the total return for the
S&P 500 Index(R) was 13.3%. For the first half of this fiscal year, on this same
basis, the Fund decreased 11.1%, compared to a 3.6% decrease for the S&P 500.
Along with the performance results, we also display a listing of the holdings of
the Fund, as well as a chart showing the allocation of the portfolio among the
broad sectors of the economy.
During the first half of the current fiscal year, the Fund's Board of Trustees
declared a dividend of $0.005 per share payable to shareholders on April 25th.
Stock market participants endured extreme volatility during the past six months.
The steady decline in the Euro, rising energy prices, fears of a slowdown in
corporate earnings, and uncertainty about the upcoming elections all conspired
to make for a very choppy ride. There was a wide disparity of market returns,
depending on which
<PAGE>
index one chose to look at. Big cap technology stocks faltered on valuation
concerns, while utility, financial and healthcare stocks were quite strong. The
technology heavy NASDAQ index declined by 19.6%. In general, smaller stocks
outperformed their large cap counterparts. The S&P 500 (a proxy for large cap
stocks) had a negative return of 3.6%, while the S&P SmallCap 600 Index (a proxy
for small cap stocks) had a positive return of 4.4%.
Factors that aided performance in the prior six-month period have hurt
performance over this most recent semi-annual period. The Fund's mandate is to
invest in the largest companies in each economic sector. As mentioned above,
larger companies generally underperformed smaller capitalization companies. In
addition, the largest technology stocks, as a whole, severely underperformed the
overall market. The three largest technology companies in the S&P 500, which, by
design, are also the Fund's technology holdings, are Cisco, Intel, and
Microsoft. These securities were down 29%, 37% and 43%, respectively, over the
past six months. The technology sector of the S&P 500 was down 21%. As a result,
the three largest technology stocks all performed worse than the sector and,
consequently, caused the majority of the Fund's underperformance relative to the
S&P 500.
The recent volatility, driven by what we feel are shortsighted concerns, reminds
us of the importance of keeping a long-term perspective. Positive longer-term
fundamentals, such as demographic trends, low inflation, productivity growth,
and the federal budget surplus, still favor the stock market, in our minds. We
continue to believe that the Fund's strategy of offering a portfolio of the
leading companies in each of the major economic sectors of the S&P 500 will
serve investors well over a long-term holding period.
As always, we appreciate your continued confidence, and are pleased to be part
of your long-term investment planning.
Sincerely,
/s/Thomas J. Rowland /s/David D. Cox
Thomas J. Rowland, CFA David D. Cox, CFA
President and Portfolio Manager Portfolio Manager
Wayne Hummer Investment Trust
October 24, 2000
"Standard& Poor's(R)" and "S&P" 500(R)" are trademarks of The McGraw Hill
Companies, Inc. and have been licensed for use by Wayne Hummer Management
Company. The Wayne Hummer CorePortfolio Fund is not sponsored, endorsed, sold or
promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the Wayne Hummer CorePortfolio Fund.
<PAGE>
Performance Comparison
Wayne Hummer CorePortfolio Fund vs. S&P 500 Index
Growth of $10,000 investment made at inception date (August 2, 1999) through
September 30, 2000.
[Line Chart Here]
S&P 500 CorePortfolio
Fund
Aug 2 99 10000 10000
9955.21 9850
Sep 99 9682.28 9520
10295 10420
Nov 99 10504.3 10540
11122.9 11195.6
Jan 00 10564.1 10855.2
10364.4 10344.5
Mar 00 11378.1 11506.1
11035.8 10749.9
May 00 10809.3 10439.3
11075.8 10860.1
Jul 00 10902.6 10830.1
11579.8 11210.8
Sep 00 10968.4 10229
Since Inception date
Annualized returns for the (August 2, 1999 -
following periods: 1 year September 30, 2000)
================================================================================
Wayne Hummer
CorePortfolio Fund
(assuming 2% sales charge) 5.30% 1.96%
--------------------------------------------------------------------------------
Wayne Hummer
CorePortfolio Fund
(at net asset value) 7.45% 3.74%
--------------------------------------------------------------------------------
S & P 500 Index 13.27% 8.29%
--------------------------------------------------------------------------------
The graph compares an initial investment of $10,000 invested in the Wayne Hummer
CorePortfolio Fund, adjusted for the maximum sales charge of 2%, with the S&P
500 Index. The S&P 500 is unmanaged and all returns include reinvestment of
dividends and capital gain distributions. 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>
Portfolio Highlights
Asset Allocation by Economic Sector as of 9/30/00
(% of total net assets)
[PIE CHART DATA]
3.6% Utilities
1.9% Basic Materials
6.1% Energy
0.4% Transportation
6.5% Communication Services
1.8% Cash and Other
7.1% Consumer Cyclicals
25.7% Technology
9.2% Capital Goods
16.0% Financial
10.2% Consumer Staples
11.5% Health Care
Top 10 Stock Holdings as of 9/30/00 (% of total net assets)
===========================================================
1. Cisco Systems, Inc. 10.1%
2. Microsoft Corporation 8.4%
3. General Electric Company 7.4%
4. Intel Corporation 7.3%
5. Citigroup Inc. 6.7%
6. American International Group, Inc. 6.1%
7. Pfizer Inc. 5.6%
8. Exxon Mobil Corporation 4.3%
9. SBC Communications Inc. 4.3%
10. Coca-Cola Company 4.2%
Portfolio holdings are subject to change and may not represent future portfolio
composition.
Portfolio Changes 10/2/00
According to the prospectus, the CorePortfolio Fund is rebalanced quarterly
after the last business day of each quarter. Based on the September 30, 2000
market capitalization weightings of the Economic Sectors of the S&P 500 Index,
the following changes were made to the portfolio holdings:
Additions
================================================================================
Security Industry
AT&T Corporation Communication Services
Bank of America Corporation Financial
Bristol-Myers Squibb Corporation Health Care
Chevron Corporation Energy
Oracle Corporation Technology
Southwest Airlines Co Transportation
Verizon Communications Communication Services
Deletions
================================================================================
Security Industry
Kansas City Southern Industries, Inc. Transportation
Worldcom, Inc. Communication Services
Stilwell Financial, Inc. Financial
<PAGE>
Statement of Assets and Liabilities
September 30, Period Ended
2000 (Unaudited) March 31, 2000
================================================================================
Assets
--------------------------------------------------------------------------------
Investments, at value (Cost: $26,083,503
and $23,288,669, respectively) $27,372,729 $26,898,376
--------------------------------------------------------------------------------
Cash 21,193 64,285
--------------------------------------------------------------------------------
Dividends receivable 13,807 19,990
--------------------------------------------------------------------------------
Prepaid expenses 9,975 1,192
--------------------------------------------------------------------------------
Expenses reimbursable in excess of expense
limitation 1,800 912
--------------------------------------------------------------------------------
Receivable for Fund Shares sold 25,896 17,985
================================================================================
Total assets 27,445,400 27,002,740
--------------------------------------------------------------------------------
Liabilities and Net Assets
--------------------------------------------------------------------------------
Due to Wayne Hummer Management Company 9,354 8,622
--------------------------------------------------------------------------------
Payable for Fund Shares redeemed - 0 - 350
--------------------------------------------------------------------------------
Accounts payable 13,447 11,185
================================================================================
Total liabilities 22,801 20,157
================================================================================
Net assets applicable to 2,686,377 and
2,347,996 Shares outstanding, no par
value, equivalent to $10.21 and $11.49
per Share, respectively $27,422,599 $26,982,583
================================================================================
Analysis of Net Assets
--------------------------------------------------------------------------------
Paid-in capital $27,137,934 $23,520,650
--------------------------------------------------------------------------------
Net unrealized appreciation of investments 1,289,226 3,609,707
--------------------------------------------------------------------------------
Undistributed net realized loss on
sales of investments (1,018,151) (156,976)
--------------------------------------------------------------------------------
Undistributed net investment income 13,590 9,202
================================================================================
Net assets applicable to Shares
outstanding $27,422,599 $26,982,583
================================================================================
The Pricing of Shares
Net asset value and redemption price
per Share ($27,422,599 / 2,686,377 Shares
outstanding and $26,982,583 / 2,347,996
Shares outstanding, respectively) $10.21 $11.49
================================================================================
Maximum offering price per Share (net asset
value, plus2.02% of net asset value or 2%
of offering price) $10.42 $11.72
================================================================================
See accompanying notes to financial statements.
<PAGE>
Statement of Operations
Six months ended For the Period
September 30, August 2, 1999 -
2000 (Unaudited) March 31, 2000
================================================================================
Investment income:
Dividends $111,348 $138,005
--------------------------------------------------------------------------------
Interest 9,259 622
================================================================================
Total investment income 120,607 138,627
--------------------------------------------------------------------------------
Expenses:
Management fee 55,310 52,748
--------------------------------------------------------------------------------
Custodian fees 7,300 14,460
--------------------------------------------------------------------------------
Professional fees 12,510 10,200
--------------------------------------------------------------------------------
Transfer agent fees 11,450 9,811
--------------------------------------------------------------------------------
Printing costs 6,375 8,000
--------------------------------------------------------------------------------
Portfolio accounting fees 5,471 3,938
--------------------------------------------------------------------------------
Registration costs 8,659 2,500
--------------------------------------------------------------------------------
Trustee fees 3,061 2,000
--------------------------------------------------------------------------------
Other 1,350 1,500
================================================================================
Total expenses 111,486 105,157
--------------------------------------------------------------------------------
Less reimbursement of expenses in excess of
the expense limitation (7,300) (6,254)
================================================================================
Net expenses 104,186 98,903
================================================================================
Net investment income 16,421 39,724
--------------------------------------------------------------------------------
Net realized loss on sales of investments (861,175) (156,976)
--------------------------------------------------------------------------------
Change in unrealized appreciation (2,320,481) 3,609,707
================================================================================
Net gain (loss) on investments (3,181,656) 3,452,731
================================================================================
Net increase (decrease) in net assets
resulting from operations ($3,165,235) $3,492,455
================================================================================
See accompanying notes to financial statements.
<PAGE>
Statement of Changes in Net Assets
Six months ended For the Period
September 30, August 2, 1999 -
2000 (Unaudited) March 31, 2000
================================================================================
Operations:
--------------------------------------------------------------------------------
Net investment income $16,421 $39,724
--------------------------------------------------------------------------------
Net realized loss on sale of investments (861,175) (156,976)
--------------------------------------------------------------------------------
Change in unrealized appreciation (2,320,481) 3,609,707
================================================================================
Net increase (decrease) in net assets resulting
from operations (3,165,235) 3,492,455
--------------------------------------------------------------------------------
Dividends to Shareholders from:
--------------------------------------------------------------------------------
Net investment income (12,033) (30,522)
--------------------------------------------------------------------------------
Net realized gain on investments - 0 - - 0 -
================================================================================
Total dividends to Shareholders (12,033) (30,522)
--------------------------------------------------------------------------------
Capital Share transactions:
--------------------------------------------------------------------------------
Proceeds from Shares sold 4,666,141 24,852,139
--------------------------------------------------------------------------------
Shares issued upon reinvestment of dividends 11,822 30,266
================================================================================
4,677,963 24,882,405
--------------------------------------------------------------------------------
Less payments for Shares redeemed 1,060,679 1,361,755
================================================================================
Increase from Capital Share transactions 3,617,284 23,520,650
================================================================================
Total increase in net assets 440,016 26,982,583
--------------------------------------------------------------------------------
Net assets:
Beginning of period 26,982,583 - 0 -
================================================================================
End of period (including undistributed
net investmentincome of $13,590
and $9,202, respectively) $27,422,599 $26,982,583
================================================================================
See accompanying notes to financial statements.
<PAGE>
Financial Highlights
(For a Share outstanding throughout each period)
Six months ended For the Period
September 30, August 2, 1999 -
2000 (Unaudited) March 31, 2000
================================================================================
Net asset value, beginning of period $11.49 $9.80
--------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.006 0.02
--------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments (1.281) 1.69
================================================================================
Total from investment operations (1.275) 1.71
--------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.005) (0.02)
--------------------------------------------------------------------------------
Distributions from net realized gain
on investments - 0 - - 0 -
================================================================================
Total distributions (0.005) (0.02)
--------------------------------------------------------------------------------
Net asset value, end of period $10.21 $11.49
================================================================================
Total Return (c) (11.10%) 17.41%
Ratios and Supplementary Data
Net assets, end of period (000's) $27,423 $26,983
--------------------------------------------------------------------------------
Ratio of expenses to average
net assets (a) (b) 0.75% 0.75%
--------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (a) (b) 0.12% 0.30%
--------------------------------------------------------------------------------
Portfolio turnover rate 25% 28%
--------------------------------------------------------------------------------
Notes to Financial Highlights:
a.) Determined on an annualized basis.
b.) During the six-month period ended September 30, 2000, and the fiscal
period ended March 31, 2000, expenses in excess of the expense limitation were
reimbursable from the Investment Adviser. Absent the expense limitation, the
ratio of expenses to average net assets would have increased and the ratio of
net investment income to average net assets would have decreased by 0.05% and
0.04%, respectively.
c.) Excludes 2% sales charge.
See accompanying notes to financial statements.
<PAGE>
Portfolio of Investments
September 30, 2000 (Unaudited)
Number of Shares Value
================================================================================
COMMON STOCKS (98.2%)
Basic Materials 1.9%
Alcoa Inc. 6,720 $170,100
Du Pont (E.I. ) de Nemours
and Company 8,161 338,171
--------------------------------------------------------------------------------
508,271
Capital Goods 9.2%
Boeing Company 3,202 201,726
General Electric Company 35,074 2,023,331
Tyco International Ltd. 5,969 309,642
--------------------------------------------------------------------------------
2,534,699
Communication Services 6.5%
SBC Communications Inc. 23,490 1,174,500
Worldcom, Inc. (b) 20,338 617,767
--------------------------------------------------------------------------------
1,792,267
Consumer Cyclicals 7.1%
Ford Motor Company 10,415 263,635
Home Depot, Inc. 11,501 610,272
Wal-Mart Stores, Inc. 22,261 1,071,311
--------------------------------------------------------------------------------
1,945,218
Consumer Staples 10.2%
Coca-Cola Company 20,987 1,156,908
Time Warner Inc. 11,150 872,488
Viacom Inc. Class B (b) 12,950 757,575
--------------------------------------------------------------------------------
2,786,971
Energy 6.1%
Exxon Mobil Corporation 13,321 1,187,234
Royal Dutch Petroleum Company (ADR) 8,223 492,866
--------------------------------------------------------------------------------
1,680,100
Financial 16.0%
American International Group, Inc. 17,507 1,675,201
Citigroup Inc. 33,994 1,837,801
Morgan Stanley Dean Witter & Co. 8,552 781,973
Stilwell Financial, Inc. 1,800 78,300
--------------------------------------------------------------------------------
4,373,275
Health Care 11.5%
Johnson & Johnson 7,500 704,531
Merck & Co., Inc. 12,396 922,727
Pfizer Inc. 33,999 1,527,830
--------------------------------------------------------------------------------
3,155,088
Number of Shares Value
================================================================================
Technology 25.7%
Cisco Systems, Inc. (b) 49,952 $2,759,848
Intel Corporation 48,088 2,001,663
Microsoft Corporation (b) 38,008 2,289,982
--------------------------------------------------------------------------------
7,051,493
Transportation 0.4%
FedEx Corporation (b) 2,341 103,800
Kansas City Southern Industries, Inc. 434 3,766
--------------------------------------------------------------------------------
107,566
Utilities 3.6%
Duke Energy Corporation 3,800 325,850
Enron Corporation 7,569 663,234
--------------------------------------------------------------------------------
989,084
================================================================================
Total Common Stocks
(Cost: $25,634,806) 26,924,032
================================================================================
SHORT-TERM INVESTMENTS (1.6%)
United States Treasury Bills
5.75% - 6.02%, 10/05/00 - 10/26/00
(Cost: $448,697) 448,697
================================================================================
TOTAL INVESTMENTS
(Cost: $26,083,503) (99.8%) 27,372,729
Cash and other assets,
less liabilities (0.2%) 49,870
================================================================================
NET ASSETS (100.0%) $27,422,599
================================================================================
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 $26,083,503 for federal income tax
purposes at September 30, 2000, the aggregate gross unrealized appreciation was
$3,370,406, the aggregate gross unrealized depreciation was $2,081,180 and the
net unrealized appreciation of investments was $1,289,226.
<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 four
investment portfolios, Wayne Hummer CorePortfolio Fund, Wayne Hummer Growth
Fund, Wayne Hummer Income Fund and Wayne Hummer Money Market Fund, each
operating as a separate mutual fund. Presented herein are the financial
statements of the Wayne Hummer CorePortfolio Fund (the "Fund"). The Fund
commenced investment operations on August 2, 1999 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 by investing in a passively-managed portfolio of large-cap stocks.
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.
2. Fund Share Valuation and Dividends to Shareholders
Net asset value per Share is determined on each day the New York Stock Exchange
is open 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. 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 20, 2000, an ordinary income dividend
of $0.01 per Share was declared, payable October 23, 2000 to Shareholders of
record on October 19, 2000.
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
<PAGE>
Accounting Services Agreement with Wayne Hummer Management Company ("Investment
Adviser"). For advisory and management services and facilities furnished, the
Fund pays fees of .40 of 1% of average daily net assets. 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, exceeds 0.75%
of the average daily net assets of the Fund. The Adviser is entitled to
reimbursement from the Fund of any fees waived during the first five years of
operations pursuant to an Expense Limitation Agreement if such reimbursements do
not cause the Fund to exceed expense limitations. During the six-month period
ended September 30, 2000 and eight-month period ended March 31, 2000, the Fund
incurred management fees of $55,310 and $52,748, respectively, and the
Investment Adviser was obligated to reimburse the Fund for excess expenses of
$7,300 and $6,254, 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. The
Investment Adviser agreed to waive its fees attributed to the Fund until July
31, 2000.
The shareholders of the Investment Advis-er are the Voting Members of Wayne
Hummer Investments LLC ("WHI"). WHI serves as Shareholder Service Agent without
compensation from the Fund. WHI also serves as Distributor and received
commissions of $88,001 and $412,574 from the sale of Fund Shares during the
six-month period ended September 30, 2000 and the fiscal period ended March 31,
2000, respectively, all of which were paid to brokers affiliated with the
Distributor.
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 six months ended September 30, 2000 and the eight-month period ended
March 31, 2000, the Fund made no direct payments to its officers and incurred
trustee fees for its disinterested trustees of $3,061 and $2,000, respectively.
5. Investment Transactions Investment transactions (excluding money market
instruments) are as follows:
Six months For the period
ended August 2,
September 30, 1999-
2000 March 31,2000
================================================================================
Purchases $10,323,046 $28,152,750
--------------------------------------------------------------------------------
Proceeds
from sales $6,716,040 $5,106,883
--------------------------------------------------------------------------------
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 For the period
ended August 2,
September 30, 1999-
2000 March 31,2000
================================================================================
Shares sold 435,079 2,472,721
--------------------------------------------------------------------------------
Shares issued
upon reinvestment
of dividends 1,077 2,823
================================================================================
436,156 2,475,544
--------------------------------------------------------------------------------
Shares redeemed (97,775) (127,548)
================================================================================
Net increase in
Shares outstanding 338,381 2,347,996
<PAGE>
Board of Trustees
Steven R. Becker
Chairman
Charles V. Doherty
Joel D. Gingiss
Patrick B. Long
David P. Poitras
James J. Riebandt
Eustace K. Shaw
Start Investing Today...
For further information on any of the funds or fund services or to discuss which
Fund may be appropriate for your investment needs, please contact your Wayne
Hummer Investment Executive.
Chicago Toll-free: 800-621-4477 Local: 312-431-1700
300 South Wacker Drive Chicago, Illinois 60606-6607
Appleton Toll-free: 800-678-0833 Local: 920-734-1474
200 East Washington Street Appleton, Wisconsin 54911-5468
Internet www.whummer.com
This brochure must be preceded or accompanied by a current prospectus of the
Wayne Hummer Investment Trust.
[Wayne Hummer logo] Wh Wayne Hummer (R) Investments
300 South Wacker Drive
Chicago, Illinois 60606-6607
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