Scout Money Market Fund
(Formerly UMB Money Market Fund)
A no-load mutual fund with primary emphasis on maximum income consistent with
safety of principal andmaintenance of liquidity.
Report for Quarter Ending
March 31, 1995
TO THE SHAREHOLDERS
The quarter ended March 31, 1995 saw a dramatic shift in investor sentiment.
After a strong 1994, the economy entered the new year with a lot of momentum.
The Federal Reserve tightened monetary policy by 50 basis points in early
February, capping a twelve-month period which saw short-term rates rise by a
full 300 basis points.
During the quarter, Scout Money Market Fund's (formerly UMB Money Market Fund)
Federal Portfolio returned an annualized yield of 5.37% and the Prime
Portfolio earned 5.40%. These figures increased to 5.50% and 5.54%,
respectively, for those shareholders who reinvested their dividends.
These returns are up significantly from a year ago, reflecting the general
rise in rates over the recent months.
As the quarter progressed, evidence began to mount that the Fed's restrictive
stance was beginning to impact the economy. Home building, auto sales, and
employment gains all began to slow and investors started to aggressively buy
longer fixed income securities for the first time in quite awhile.
The tightening in February produced a rise in very short-term rates of between
25 and 50 basis points for the quarter. The strong buying of instruments
beyond three months pushed those rates down by as much as 50 basis points
during the past three months.
Given the turbulence experienced by the financial markets over the past year,
and concerns over the future course of rates, our policy of focusing on
quality and liquidity without the use of derivatives should continue to serve
our shareholders well.
Sincerely,
LARRY D. ARMEL
Larry D. Armel
President
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Shares of the Scout Funds are not deposits or obligations of, nor guaranteed
by, UMB Bank, n.a. or any other banking institution, nor are they federally
insured by the Federal Deposit Insurance Corporation or any other federal
agency. These shares involve investment risks, including the possible loss of
the principal amount invested.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
Statement of Net Assets
March 31, 1995
Principal Market
Amount Description Value
<S> <C> <C>
PRIME PORTFOLIO
BANKERS' ACCEPTANCES - 7.82%
$ 4,000,000 CoreStates Bank, N.A., 6.27%, due May 18, 1995 $ 3,917,793
2,000,000 First National Bank-Maryland, 5.99%, due April 7, 1995 1,990,349
1,000,000 First National Bank-Maryland, 5.52%, due April 12, 1995 972,860
2,000,000 Republic National Bank-New York, 5.92%, due April 7, 1995 1,954,942
1,000,000 Republic National Bank-New York, 6.50%, due June 7, 1995 967,500
2,000,000 Republic National Bank-New York, 6.00%, due July 14, 1995 1,961,333
2,000,000 Republic National Bank-New York, 6.14%, due August 11, 1995 1,939,965
4,000,000 Republic National Bank-New York, 6.15%, due August 17, 1995 3,876,317
18,000,000 17,581,059
SHORT-TERM CORPORATE NOTES _ 29.94%
6,000,000 AIG Funding, Incorporated, 6.50%, due June 13, 1995 5,805,000
3,000,000 AIG Funding, Incorporated, 6.45%, due June 19, 1995 2,903,250
4,000,000 American Telephone & Telegraph Company, 5.92%, due April 17, 1995 3,978,951
6,000,000 American Telephone & Telegraph Company, 6.05%, due July 18, 1995 5,860,850
3,250,000 Ameritech Corporation, 5.70%, due April 25, 1995 3,160,977
4,000,000 Coca-Cola Company, 5.52%, due April 11, 1995 3,940,667
11,000,000 IBM Credit Corporation, 5.95%, due April 13, 1995 10,974,547
10,000,000 Minnesota Mining & Manufacturing Company, 6.00%, due June 14, 1995 9,851,667
10,000,000 Shell Oil Company, 5.97%, due June 20, 1995 9,852,408
11,000,000 Wal-Mart Stores, Incorporated, 6.00%, due April 7, 1995 10,985,333
68,250,000 67,313,650
GOVERNMENT SPONSORED ENTERPRISES - 51.73%
1,500,000 Federal Farm Credit Banks Discount Notes, 4.82%, due April 24, 1995 1,427,098
10,000,000 Federal Home Loan Banks Discount Notes, 6.00%, due April 6, 1995 9,990,000
4,000,000 Federal Home Loan Banks Discount Notes, 5.95%, due April 11, 1995 3,992,728
1,000,000 Federal Home Loan Banks Discount Notes, 5.05%, due May 15, 1995 954,410
3,000,000 Federal Home Loan Banks Discount Notes, 6.20%, due June 26, 1995 2,921,983
2,000,000 Federal Home Loan Banks Discount Notes, 6.50%, due July 7, 1995 1,923,083
1,000,000 Federal Home Loan Banks Discount Notes, 6.10%, due July 24, 1995 959,672
2,310,000 Federal Home Loan Banks Discount Notes, 6.37%, due September 28, 1995 2,186,969
2,000,000 Federal Home Loan Banks Discount Notes, 6.28%, due February 2, 1996 1,877,889
2,000,000 Federal Home Loan Banks Discount Notes, 6.30%, due February 2, 1996 1,878,900
20,895,000 Federal Home Loan Mortgage Corporation Discount Notes, 5.94%, due April 20, 1995 20,822,599
12,500,000 Federal Home Loan Mortgage Corporation Discount Notes, 5.95%, due April 21, 1995 12,454,625
40,000,000 Federal National Mortgage Association Discount Notes, 5.97%, due April 7, 1995 39,950,339
1,000,000 Federal National Mortgage Association Discount Notes, 5.18%, due June 16, 1995 951,653
1,500,000 Federal National Mortgage Association Discount Notes, 5.23%, due June 16, 1995 1,426,562
5,000,000 Federal National Mortgage Association Discount Notes, 6.32%, due July 10, 1995 4,854,289
3,000,000 Federal National Mortgage Association Discount Notes, 6.32%, due July 24, 1995 2,902,567
5,000,000 Federal National Mortgage Association Discount Notes,
6.01%, due September 22, 1995 4,845,576
117,705,000 116,320,942
REPURCHASE AGREEMENT - 10.30%
23,163,000 NationsBank, 6.30%, due April 3, 1995
(Collateralized by U.S. Treasury Notes, 4.625%, due February 15, 1996) 23,163,000
TOTAL INVESTMENTS - 99.79% $ 224,378,651
Other assets less liabilities - 0.21% 469,126
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share; 750,000,000 shares of $0.01 par
value capital shares authorized; 224,878,657 shares outstanding) $ 224,847,777
</TABLE>
Valuation of securities is on the basis of amortized cost, which approximates
market value.
<TABLE>
<CAPTION>
Principal Market
Amount Description Value
<S> <C> <C>
FEDERAL PORTFOLIO
GOVERNMENT SPONSORED ENTERPRISES _ 72.46%
$ 7,000,000 Federal Farm Credit Banks Discount Notes, 6.03%, due September 14, 1995 $ 6,787,778
5,000,000 Federal Home Loan Banks Discount Notes, 6.00%, due April 6, 1995 4,995,000
4,240,000 Federal Home Loan Banks Discount Notes, 5.95%, due April 11, 1995 4,232,291
18,160,000 Federal Home Loan Banks Discount Notes, 5.94%, due April 20, 1995 18,097,076
9,000,000 Federal Home Loan Banks Discount Notes, 5.94%, due June 5, 1995 8,850,015
3,000,000 Federal Home Loan Banks Discount Notes, 6.20%, due June 26, 1995 2,921,983
2,000,000 Federal Home Loan Banks Discount Notes, 6.50%, due July 7, 1995 1,923,083
1,000,000 Federal Home Loan Banks Discount Notes, 6.52%, due July 7, 1995 963,053
4,000,000 Federal Home Loan Banks Discount Notes, 6.55%, due July 7, 1995 3,850,078
2,000,000 Federal Home Loan Banks Discount Notes, 6.10%, due July 24, 1995 1,919,344
4,000,000 Federal Home Loan Banks Discount Notes, 6.15%, due July 24, 1995 3,838,050
1,000,000 Federal Home Loan Banks Discount Notes, 6.15%, due September 28, 1995 947,213
700,000 Federal Home Loan Banks Discount Notes, 6.95%, due December 22, 1995 651,620
5,000,000 Federal Home Loan Banks Discount Notes, 6.28%, due February 2, 1996 4,697,250
5,000,000 Federal National Mortgage Association Discount Notes, 5.90%, due April 3, 1995 4,939,361
5,000,000 Federal National Mortgage Association Discount Notes, 6.10%, due April 6, 1995 4,911,042
25,000,000 Federal National Mortgage Association Discount Notes, 5.95%, due April 7, 1995 24,966,944
5,000,000 Federal National Mortgage Association Discount Notes, 5.97%, due April 7, 1995 4,994,196
10,000,000 Federal National Mortgage Association Discount Notes, 5.90%, due April 17, 1995 9,970,350
5,000,000 Federal National Mortgage Association Discount Notes, 5.95%, due April 17, 1995 4,921,493
3,000,000 Federal National Mortgage Association Discount Notes, 5.63%, due April 24, 1995 2,917,896
5,000,000 Federal National Mortgage Association Discount Notes, 6.00%, due May 17, 1995 4,896,667
800,000 Federal National Mortgage Association Discount Notes, 5.18%, due June 16, 1995 761,323
1,000,000 Federal National Mortgage Association Discount Notes, 5.23%, due June 16, 1995 951,041
3,000,000 Federal National Mortgage Association Discount Notes, 6.42%, due June 30, 1995 2,898,885
5,000,000 Federal National Mortgage Association Discount Notes, 6.32%, due July 10, 1995 4,854,289
5,000,000 Federal National Mortgage Association Discount Notes, 6.01%, due August 14, 1995 4,862,271
143,900,000 141,519,592
REPURCHASE AGREEMENTS - 28.04%
20,000,000 Harris Bank, 6.15%, due April 3, 1995
(Collateralized by U.S. Treasury Notes, 5.875%, due May 31, 1996) 20,000,000
34,755,000 NationsBank, 6.30%, due April 3, 1995
(Collateralized by U.S. Treasury Notes, 4.625%, due February 15, 1996) 34,755,000
54,755,000 54,755,000
TOTAL INVESTMENTS - 100.50% $ 196,274,592
Other assets less liabilities - (0.50%) (973,637)
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share; 750,000,000 shares of $0.01 par value
capital shares authorized; 195,349,079 shares outstanding) $ 195,300,955
</TABLE>
Valuation of securities is on the basis of amortized cost, which approximates
market value.
This report has been prepared for the information of the Shareholders of
Scout Money Market Fund, Inc., and is not to be construed as an offering of
the shares of the Fund. Shares of this Fund and of the other Scout Funds are
offered only by the Prospectus, a copy of which may be obtained from Jones &
Babson, Inc.
