SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. _____ [ ]
Post-Effective Amendment No. 22 File No. 2-79131 [X]
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 23 File No. 811-3557 [X]
UMB STOCK FUND, INC.
(Exact Name of Registrant as Specified in Charter)
2440 Pershing Road, G-15 Kansas City, Missouri 64108
(Address of Principal Executive Office)
Registrant's Telephone Number, including Area Code (816) 471-5200
Larry D. Armel, President, UMB STOCK FUND, INC.
2440 Pershing Road, G-15, Kansas City, Missouri 64108
(Name and Address of Agent for Service)
Approximate Date of Proposed Public Offering: April 30, 1995
It is proposed that this filing become effective:
X on April 30, 1995 pursuant to paragraph (b) of Rule 485
Registrant has registered an indefinite number or amount of securities
under the Securities Act of 1933 pursuant to Rule 24f-2 of the In-
vestment Company Act of 1940, and will file its required Rule 24f-2
Notice for the Registrant's fiscal year ended June 30, 1995, by
August 30, 1995.
Please address inquiries and a carbon copy of all
and communications to: communications to:
John G. Dyer, Esq. Mark H. Plafker, Esq.
David L Babson Stradley, Ronon, Stevens & Young
Growth Fund, Inc. 2600 One Commerce Square
2440 Pershing Road, G-15 Philadelphia, PA 19103-7098
Kansas City, MO 64108 Telephone: (215) 564-8024
Telephone: (816) 471-5200
PROSPECTUS
April 30, 1995
Scout Stock Fund, Inc.
Scout Regional Fund, Inc.
Scout Bond Fund, Inc.
Scout WorldWide Fund, Inc.
Scout Money Market Fund, Inc.
Scout Tax-Free Money Market Fund, Inc.
Managed and Distributed By:
Jones & Babson, Inc.
Three Crown Center
2440 Pershing Road, Suite G-15
Kansas City, Missouri 64108
Toll-Free 1-800-996-2862
INVESTMENT OBJECTIVES
The Scout Funds were created especially for the benefit of
customers of affiliated banks of UMB Financial Corporation and
those investors who share the Funds' investment goals. All of the
Funds are no-load. Scout Stock Fund's investment objective is long
term growth of both capital and dividend income. Scout Regional
Fund's objective is long term growth of both capital and dividend
income through investment in smaller regional companies. Scout Bond
Fund's investment objective is maximum current income consistent
with its quality and maturity standards by investing in a
diversified list of fixed-income obligations. Scout WorldWide
Fund's objective is long term growth of both capital and dividend
income through investment in a diversified portfolio of equity
securities of established companies either located in the United
States, or whose primary business is carried on outside the
country. The Fund initially intends to invest in the securities
of foreign issuers issued within the United States such as
American Depository Receipts (ADR's). The Fund intends to spread
its investments among various countries and a number of different
industries. (See "Investment Objective and Portfolio Management
Policy" on page 15 of this Prospectus. For a discussion of
special risk consideration see page 21 of this Prospectus.) Scout
Money Market Fund offers two portfolios with the objective of
maximizing income consistent with safety of principal and
liquidity. The Fund further seeks to maintain a constant net
asset value (price) of $1.00 per share. Scout Tax-Free Money Market
Fund's investment objective is maximizing income free from
federal income tax consistent with safety of principal and
liquidity. The Fund further seeks to maintain a constant net
asset value (price) of $1.00 per share by investing in short-term
investment-grade municipal securities which are exempt from
federal income tax. There are, however, no guarantees that any of
the Funds' objectives will be met, or that the $1.00 per share
price of the Money Market or Tax-Free Money Market Funds will be
maintained. The shares offered by this prospectus are not
deposits or obligations of, nor guaranteed by, UMB Bank, n.a., or
any of its affiliate banks. They are not federally insured by the
Federal Deposit Insurance Corporation (FDIC) or any other agency.
These shares may involve investment risks, including the possible
loss of the principal amount invested.
PURCHASE INFORMATION
Minimum Investment (each Fund or Portfolio selected)
Initial Purchase $1,000
Subsequent Purchase by check $100
Subsequent Purchase by wire $500
Shares are purchased and redeemed at net asset value. There are
no sales, redemption or Rule 12b-1 distribution charges. If you
need further information, please call the Fund at the telephone
numbers indicated.
ADDITIONAL INFORMATION
This prospectus should be read and retained for future reference.
It contains the information that you should know before you
invest. A "Statement of Additional Information" of the same date
as this prospectus has been filed with the Securities and
Exchange Commission and is incorporated by reference. Investors
desiring additional information about the Funds may obtain a copy
without charge by writing or calling the Fund.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
TABLE OF CONTENTS Page
Highlights 2
Fund Expenses 5
Financial Highlights 9
Investment Objective and Portfolio Management Policy 15
Repurchase Agreements 21
Risk Factors 21
Investment Restrictions 22
Performance Measures 22
How to Purchase Shares 24
Initial Investments 24
Investments Subsequent to Initial Investment 24
Telephone Investment Service 25
Automatic Monthly Investment Plan 25
How to Redeem Shares 25
Systematic Redemption Plan 28
How to Exchange Shares Between Scout Funds 28
How Share Price is Determined 29
Officers and Directors 30
Management and Investment Counsel 31
General Information and History 32
Dividends, Distributions and Their Taxation 33
Shareholder Services 35
Shareholder Inquiries 35
Highlights
The Scout Funds (formerly the UMB Funds) are a group of six open-end
diversified investment
companies sponsored by Jones & Babson, Inc. especially for
customers of affiliate banks of UMB Financial Corporation. Scout
Stock Fund, Scout Regional Fund, Scout Bond Fund, Scout Money Market
Fund, Scout Tax-Free Money Market Fund and Scout WorldWide Fund are
available to any investor.
Scout Stock Fund, Inc., Scout Bond Fund, Inc. and Scout Tax-Free Money
Market Fund, Inc. were incorporated in Maryland on July 29, 1982.
Scout Money Market Fund, Inc. was incorporated in Maryland on June
23, 1982. Scout Regional Fund, Inc. was incorporated in Maryland
on July 8, 1986, and Scout WorldWide Fund, Inc. was incorporated in
Maryland on January 7, 1993
Scout Stock Fund, Scout Regional Fund, Scout Bond Fund, Scout Tax-Free
Money Market Fund and Scout WorldWide Fund each offer one class of
non-assessable common shares with equal voting rights.
On April 30, 1995 the Fund Group changed its name from UMB to Scout.
Scout Money Market Fund offers its common shares in two series, one
for each of the Fund's portfolios, Federal and Prime. Both
portfolios have the same objective but vary as to the types of
securities held.
Scout Stock Fund will invest in a diversified list of common stocks
representing companies selected for their promise of long-term
growth of both capital and dividend income.
Scout Regional Fund will invest in a diversified list of common
stocks representing midwestern regional companies selected for
their promise of long-term growth of both capital and dividend
income.
Scout Bond Fund will seek maximum current income consistent with
its quality and maturity standards by investing in a diversified
list of fixed income obligations.
Scout Money Market Fund is a convenient facility for investors to
manage their money over the short-term for the purpose of
maximizing income consistent with safety of principal and
liquidity. Holdings will be limited to domestic issues of high
quality. Maturities will not exceed one year. Average-weighted
maturity in each portfolio will not exceed 90 days.
Scout Tax-Free Money Market Fund is a convenient facility, free of
federal income tax, for investors to manage their money over the
short-term for the purpose of maximizing incomeconsistent with
safety of principal and liquidity. Holdings will be limited to
domestic issues of high quality municipal securities. Maturities
will not exceed one year. Average-weighted maturity of the
portfolio will not exceed 90 days.
Scout WorldWide Fund will invest in a diversified portfolio of
equity securities of established companies either located in the
United States or whose primary business is carried on outside the
country.
How to Invest
Fund shares can only be purchased directly from the Funds through
their manager and principal underwriter, Jones & Babson, Inc.
Because no sales charges are added to the price of the shares,
the full amount of any purchase is invested for the benefit of
the shareholder. The minimum initial purchase is $1,000.
Subsequent purchases must be at least $100, except wire purchases
which must be in the amount of $500 or more.
Telephone Investment - You may make investments of $1,000 or more
by telephone if you have authorized such investments in your
application, or, subsequently, on a special authorization form
provided upon request.
Automatic Monthly Investment - You may elect to make monthly
investments in a constant dollar amount from your checking
account ($100 minimum). The Fund will draft your checking account
on the same day each month in the amount you authorize in your
application, or, subsequently, on a special authorization form
provided upon request.
Redemption
Shares of the Funds are redeemable at net asset value next
effective after receipt by the Fund of a shareholder's request in
good order. No redemption charge is made.
Exchange Privilege with Other Scout Funds
Shareholders may transfer their investment without charge to any
other Scout Fund sponsored by Jones & Babson, Inc. for UMB
Financial Corporation and its affiliates. This exchange involves
the liquidation of shares from one Fund and a purchase of shares
in the Fund to which the investment is being transferred. This is
a transaction which may or may not be taxable depending on the
shareholder's tax status.
Automatic Exchange - You may exchange shares from your account
($100 minimum) in any of the Scout Funds to an identically
registered account in any other Fund in the Scout Group according
to your instructions. Monthly exchanges will be continued until
all shares have been exchanged or until you terminate the
Automatic Exchange authorization. A special authorization form
will be provided upon request.
Management of the Funds
The Funds are managed by Jones & Babson, Inc. which employs
UMB Bank, n.a. to assist in the investment advisory function.
The Management Fee Covers the Investment Advisory Fee and All Other Normal
Operating Costs
Jones & Babson, Inc., as manager, agrees to supply to the Funds
all normal services necessary for their functions as open-end
diversified investment companies, exclusive of taxes and other
charges of governments and their agencies (including the cost of
qualifying the Funds' shares for sale in any jurisdiction),
certain fees, dues, interest, brokerage commissions and
extraordinary costs, if any. For this it charges Scout Money Market
Fund, Inc. and Scout Tax-Free Money Market Fund, Inc. a fee based
on an annual rate of 50/100 of 1% (0.50%) of the Funds' average
daily net assets. These fees include the investment counsel
services of David L. Babson & Co. Inc. Scout Stock Fund, Inc., Scout
Regional Fund, Inc., Scout Bond Fund, Inc. and Scout WorldWide Fund,
Inc. are charged a fee based on an annual rate of 85/100 of 1%
(0.85%) of the Funds' average daily net assets. These fees
include the investment counsel services of UMB Bank, n.a.
Although these fees are higher than the fees of some other
advisers whose charges cover only investment advisory services
with all remaining operational expenses absorbed directly by the
Fund, Jones & Babson's charges compare favorably with other
advisers when all expenses to Fund shareholders are taken into
account.
Dividend Policies
Scout Stock Fund, Inc., Scout Regional Fund, Inc. and Scout WorldWide
Fund, Inc. will pay substantially all of their net income
semiannually, usually in June and December. It is contemplated
that substantially all of any net capital gains realized during a
fiscal year will be distributed with the fiscal year-end
dividend, with any remaining balance paid in December.
Scout Tax-Free Money Market Fund, Inc., and each Portfolio of Scout
Money Market Fund, Inc. declare a dividend every business day,
equal to substantially all of their undistributed net investment
income. The dividends declared are pro-rated daily among the
shares eligible to receive them. Daily dividends are accumulated
and paid monthly. These Funds' policies relating to maturities
make it unlikely that they will have capital gains or losses.
Scout Bond Fund, Inc. will declare a dividend every business day,
equal to substantially all of the Fund's undistributed net
investment income. The dividend declared is pro-rated daily among
the shares eligible to receive the dividend. Daily dividends are
accumulated and paid monthly. It is contemplated that
substantially all of any net capital gains realized during a
fiscal year will be distributed with the fiscal year-end
dividend, with any remaining balance paid in December.
Taxes
The Funds will distribute substantially all of their net income
each year in order to be exempt from federal income tax. Dividend
and capital gains distributions will be taxable to each
shareholder whether taken in cash or reinvested in additional
shares in accordance with the shareholder's tax status.
Risk Factors
For a discussion of risk factors applicable to repurchase
agreements.
For a discussion of risk factors peculiar to money market
instruments.
For a discussion of risk factors applicable to concentration of
assets in the banking industry.
For a discussion of risk factors applicable to foreign
investments.
FUND EXPENSES
The following information is provided in order to assist you in
understanding the various costs and expenses that a shareholder
of a Scout Fund will bear directly or indirectly.
Scout Stock Fund
The expenses set forth below are for the fiscal year ended June
30, 1994.
Shareholder Transaction Expenses
Maximum sales load imposed on purchases None
Maximum sales load imposed on reinvested dividends None
Deferred sales load None
Redemption fee None
Exchange fee None
Annual Fund Operation Expenses (as a percentage of average net
assets)
Management fees .85%
12b-1 fees None
Other expenses .02%
Total Fund operating expenses .87%
You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of
each time period:
1 Year 3 Year 5 Year 10 Year
$9 $28 $48 $107
Scout Regional Fund
The expenses set forth below are for the fiscal year ended
December 31, 1994.
Shareholder Transaction Expenses
Maximum sales load imposed on purchases None
Maximum sales load imposed on reinvested dividends None
Deferred sales load None
Redemption fee None
Exchange fee None
Annual Fund Operation Expenses (as a percentage of average net
assets)
Management fees .85%
12b-1 fees None
Other expenses .06%
Total Fund operating expenses .91%
You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of
each time period:
1 Year 3 Year 5 Year 10 Year
$9 $29 $50 $111
Scout Bond Fund
The expenses set forth below are for the fiscal year ended June
30, 1994.
Shareholder Transaction Expenses
Maximum sales load imposed on purchases None
Maximum sales load imposed on reinvested dividends None
Deferred sales load None
Redemption fee None
Exchange fee None
Annual Fund Operation Expenses(as a percentage of average net
assets)
Management fees .85%
12b-1 fees None
Other expenses .02%
Total Fund operating expenses .87%
You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of
each time period:
1 Year 3 Year 5 Year 10 Year
$9 $28 $48 $108
Scout Money Market Fund (Federal Portfolio)
The expenses set forth below are for the fiscal year ended June
30, 1994.
Shareholder Transaction Expenses
Maximum sales load imposed on purchases None
Maximum sales load imposed on reinvested dividends None
Deferred sales load None
Redemption fee None
Exchange fee None
Annual Fund Operation Expenses(as a percentage of average net
assets)
Management fees .50%
12b-1 fees None
Other expenses -
Total Fund operating expenses .50%
You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of
each time period:
1 Year 3 Year 5 Year 10 Year
$5 $16 $28 $63
Scout Money Market Fund (Prime Portfolio)
The expenses set forth below are for the fiscal year ended June
30, 1994.
Shareholder Transaction Expenses
Maximum sales load imposed on purchases None
Maximum sales load imposed on reinvested dividends None
Deferred sales load None
Redemption fee None
Exchange fee None
Annual Fund Operation Expenses (as a percentage of average net
assets)
Management fees .50%
12b-1 fees None
Other expenses .01%
Total Fund operating expenses .51%
You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of
each time period:
1 Year 3 Year 5 Year 10 Year
$5 $16 $29 $64
Scout Tax-Free Money Market Fund
The expenses set forth below are for the fiscal year ended June
30, 1994.Shareholder Transaction Expenses
Maximum sales load imposed on purchases None
Maximum sales load imposed on reinvested dividends None
Deferred sales load None
Redemption fee None
Exchange fee None
Annual Fund Operation Expenses(as a percentage of average net
assets)
Management fees .50%
12b-1 fees None
Other expenses .03%
Total Fund operating expenses .53%
You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of
each time period:
1 Year 3 Year 5 Year 10 Year
$5 $17 $30 $67
Scout WorldWide Fund, Inc.
The expenses set forth below are for the fiscal year ended
December 31, 1994.
Shareholder Transaction Expenses
Maximum sales load imposed on purchases None
Maximum sales load imposed on reinvested dividends None
Deferred sales load None
Redemption fee None
Exchange fee None
Annual Fund Operation Expenses(as a percentage of average net
assets)
Management fees .85%
12b-1 fees None
Other expenses None
Total Fund operating expenses .85%
You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of
each time period:
1 Year 3 Year 5 Year 10 Year
$9 $27 $47 $105
The above examples should not be considered a representation of
past or future expenses as actual expenses may be greater or less
than those shown. The assumed 5% annual return is hypothetical
and should not be considered a representation of past or future
annual return. The actual return may be greater or less than the
assumed amount.
The purpose of the foregoing fee tables is to
assist the investor in understanding the various costs and
expenses that an investor in a Fund will bear directly or
indirectly. The various costs and expenses are explained in more
detail in this prospectus. Management fees are discussed in
greater detail under "Management and Investment Counsel."
FINANCIAL HIGHLIGHTS
Scout Stock Fund, Inc.
The following financial highlights for the
ten years ended June 30, 1994, have been derived from audited
financial statements of Scout Stock Fund, Inc. and should be read
in conjunction with the financial statements of the Fund and the
report of Arthur Andersen LLP, independent public accountants,
appearing in the June 30, 1994 annual report to shareholders
which is incorporated by reference in this prospectus. The
information for each of the five years in the period ended June
30, 1989 is not covered by the report of Arthur Andersen LLP.
(See Financial Data Schedule)
Scout Regional Fund, Inc.
The following financial highlights for each of the periods
presented from inception (November 17, 1986) to December 31, 1994
have been derived from audited financial statements of Scout
Regional Fund, Inc. and should be read in conjunction with the
financial statements of the Fund and the report of Baird, Kurtz &
Dobson, independent certified public accountants, appearing in
the December 31, 1994 annual report to shareholders which is
incorporated by reference in this prospectus. The information for
each of the periods ended June 30, 1991 and prior is not covered
by the report of Baird, Kurtz & Dobson.
(See Financial Data Schedule)
Scout Bond Fund, Inc.
The following financial highlights for the ten years ended June
30, 1994, have been derived from audited financial statements of
Scout Bond Fund, Inc. and should be read in conjunction with the
financial statements of the Fund and the report of Arthur
Andersen LLP, independent public accountants, appearing in the
June 30, 1994 annual report to shareholders which is incorporated
by reference in this prospectus. The information for each of the
five years in the period ended June 30, 1989 is not covered by
the report of Arthur Andersen LLP.
(See Financial Data Schedule)
Scout Money Market Fund, Inc.
The following financial highlights for the ten years ended June
30, 1994, have been derived from audited financial statements of
Scout Money Market Fund, Inc. and should be read in conjunction
with the financial statements of the Fund and the report of
Arthur Andersen LLP, independent public accountants, appearing in
the June 30, 1994 annual report to shareholders which is
incorporated by reference in this prospectus. The information for
each of the five years in the period ended June 30, 1989 is not
covered by the report of Arthur Andersen LLP.
(See Financial Data Schedule)
Scout Tax-Free Money Market Fund, Inc.
The following financial highlights for the ten years ended June
30, 1994, have been derived from audited financial statements of
Scout Tax-Free Money Market Fund, Inc. and should be read in
conjunction with the financial statements of the Fund and the
report of Arthur Andersen LLP, independent public accountants,
appearing in the June 30, 1994 annual report to shareholders
which is incorporated by reference in this prospectus. The
information for each of the five years in the period ended June
30, 1989 is not covered by the report of Arthur Andersen LLP.
(See Financial Data Schedule)
Scout WorldWide Fund, Inc.
The following financial highlights for the period presented from
inception (September 14, 1993) to December 31, 1994, have been
derived from audited financial statements of Scout WorldWide Fund,
Inc. and should be read in conjunction with the financial
statements of the Fund and the report of Baird, Kurtz & Dobson,
independent certified public accountants, appearing in the
December 31, 1994 annual report to shareholders which is
incorporated by reference in this prospectus.
(See Financial Data Schedule)
INVESTMENT OBJECTIVE and PORTFOLIO MANAGEMENT POLICY
Each Fund's objectives and policies as described in this section
will not be changed without approval of a majority of the Fund's
outstanding shares.
Scout Stock Fund
Scout Stock Fund's objective is to provide investors with long-term
growth of both capital and dividend income. Current yield is
secondary to the long-term growth objective.
The Fund cannot guarantee that these objectives will be achieved
because there are inherent risks in the ownership of the
investments made by the Fund. The value of the Fund's shares will
reflect changes in the market value of its investments, and
dividends paid by the Fund will vary with the income it receives
from these investments. Through careful management and
diversification it will seek to reduce risk and enhance the
opportunities for long-term growth of capital and income.
Normally the Fund will invest at least 80% of its total assets
(exclusive of cash) in common stocks. There are no restrictions
or guidelines regarding investments of Fund assets in shares
listed on an exchange or traded over-the-counter.
The Fund believes the true value of a company's stock is
determined by its earning power, dividend-paying ability, and in
many cases, by its assets. Consequently, the primary emphasis
will be placed on progressive well-managed companies in growing
industries that have demonstrated both a consistent and an
above-average ability to increase their earnings and dividends
and which have favorable prospects of sustaining such growth.
The Fund also believes that the intrinsic worth and the
consequent value of the stock of most well-managed and successful
companies usually does not change rapidly, even though wide
variations in the price may occur. So normally, long-term
positions in stocks of the portfolio companies selected will be
taken and maintained while the company's record and prospects
continue to meet with management's approval. The Fund will change
its investments when, in management's judgment, economic and
market conditions make such a course desirable. But such changes
will be no more than is necessary to carry out the Fund's
objectives.
Necessary reserves will be held in cash or short-term debt
obligations, including repurchase agreements (see below), readily
changeable to cash. The management believes, however, that there
may be times when the shareholders' interests are best served and
the objectives are most likely to be achieved, by investing in
securities convertible into common stocks, preferred stocks,
high-grade bonds or other defensive issues. It retains the
freedom to administer the portfolio of the Fund accordingly when,
in its judgment, economic and market conditions make such a
course desirable.
The Fund also may invest in issues of the United States treasury
and United States government agencies subject to repurchase
agreements entered into with the seller of the issue. The use of
repurchase agreements by the Fund involves certain risks. For a
discussion of repurchase agreements and their risks see page 21.
Although the Fund does not intend to obtain short-term trading
profits, it is possible that holdings may be increased when a
stock is considered to be undervalued and decreased when it is
considered to be overvalued. Scout Stock Fund's annualized turnover
ratio for the fiscal year ended June 30, 1992, it was 12%, for
June 30, 1993, it was 21% and for June 30, 1994, it was 22%.
Commissions paid during the fiscal year ended June 30, 1994,
amounted to $75,000.
The Fund does not intend to concentrate its investments in any
particular industry. Without the approval of shareholders, it
will not purchase a security if as a result of such purchase more
than 25% of its assets will be invested in a particular industry.
Scout Regional Fund
The Scout Regional Fund is an open-end management investment
company (no-load mutual fund) created especially for the benefit
of customers of affiliate banks of UMB Financial Corporation and
those investors who share the Fund's investment goal of providing
long-term growth of both capital and dividend income through
investment in smaller regional companies. Current yield is
secondary to the long-term growth objective. Scout Regional Fund
will invest in a diversified list of common stocks representing
such companies located in or doing a substantial portion of their
business in Missouri, Kansas, Iowa, Nebraska, Arkansas, Oklahoma,
Illinois, and Colorado. Such stocks will be selected for their
promise of long-term growth of both capital and dividend income.
There can be no assurance that the Fund will achieve its
objective. This objective may not be changed without shareholder
approval. The Fund will seek to achieve its objective by
investing at least 80% of its total assets (exclusive of cash) in
a diversified portfolio of common stocks of smaller companies
either located in or having a substantial portion of their
business in Missouri, Kansas, Iowa, Nebraska, Arkansas, Oklahoma,
Illinois, and Colorado. There are no restrictions or guidelines
regarding investment of Fund assets in shares listed on an
exchange or traded over-the-counter.
The Fund generally intends to invest in stocks of such regional
companies with market capitalization of $1 billion or less,
although there may be times when shareholders' interests are best
served by investing in preferred stocks, bonds or other defensive
issues. It is not anticipated that the Fund will invest in "penny
stocks" or other issues with very low prices although price alone
will not be a sole determining factor in the selection of
investments.
The Fund cannot guarantee that its investment objectives will be
achieved because there are inherent risks in the ownership of any
investments, particularly investments in smaller companies. The
value of the Fund's shares will reflect changes in the market
value of its investments, and dividends paid by the Fund will
vary with the income it receives from these investments. Through
careful management and diversification it will seek to reduce
risk and enhance the opportunities for long-term growth of
capital and income.
While the Fund's investments will be concentrated in the
eight-state region described above, it does not intend to
concentrate its investments in any particular industry. Without
the approval of shareholders, it will not purchase a security if
as a result of such purchase more than 25% of its assets will be
invested in a particular industry. Although there is no intention
to concentrate Fund investments in one or more of the states
mentioned above, there is no limitation upon investments in any
particular state.
The Fund will normally invest at least 75% of its assets in
investment-grade common stocks, but reserves the right to
temporarily invest for defensive purposes less than 75% of its
assets in common stocks if, in the opinion of the Fund's
investment adviser, prevailing market conditions warrant. The
Fund may invest the balance, up to 100% of its assets, in
preferred stocks or defensive issues such as short-term money
market instruments such as commercial paper, bankers'
acceptances, certificates of deposit and other debt securities
such as corporate bonds rated A or better by Moody's or Standard
& Poor's, or U.S. government issues such as treasury bills,
treasury notes and treasury bonds.
Necessary reserves will be held in cash or short-term debt
obligations, including repurchase agreements (see below), readily
changeable to cash. The management believes, however, that there
may be times when the shareholders' interests are best served and
the Fund's investment objectives are most likely to be achieved,
by investing in securities convertible into common stocks, or
defensive issues such as high-grade bonds or other defensive
issues. It retains the freedom to administer the portfolio of the
Fund accordingly when, in its judgment, economic and market
conditions make such a course desirable.
The Fund also may invest in issues of the United States treasury
and United States government agencies subject to repurchase
agreements entered into with the seller of the issue. The use of
repurchase agreements by the Fund involves certain risks. For a
discussion of repurchase agreements and their risks see page 21.
Although the Fund does not intend to obtain short-term trading
profits, it is possible that holdings may be increased when a
stock is considered to be undervalued and decreased when it is
considered to be overvalued. Scout Regional Fund's annualized
turnover ratio for the fiscal year ended December 31, 1992,
it was 7%, for December 31, 1993, it was 17% and for December
31, 1994, it was 27%. Commissions paid during the fiscal year ended
December 31, 1994, amounted to $27,703.
Scout Bond Fund
Scout Bond Fund's investment objective is to provide shareholders
with maximum current income consistent with its quality and
maturity standards by investing in a diversified portfolio of
fixed-income obligations. The Fund cannot guarantee that its
objective will be achieved because there are inherent risks in
the ownership of fixed-income investments. The value of the
Fund's shares will reflect changes in the market value of its
investments which will vary inversely with changes in interest
rates. Dividends paid by the Fund will vary according to the
income it receives from its investments. However, the Fund will
seek, through careful management and diversification, to reduce
these risks and enhance the opportunities for maximizing current
income.
The Fund will normally invest at least 80% of its assets in bonds
such as: (1) direct or guaranteed obligations of the U.S.
government and its agencies, and (2) high-quality debt securities
including notes and bonds issued by corporations or other
business organizations.
The Fund will invest only in the following "U.S. Government
Securities":
1. Direct obligations of the U.S. government such as
bills, notes, bonds and other debt securities issued by the U.S.
treasury.
2. Obligations of U.S. government agencies and
instrumentalities which are secured by the full faith and credit
of the U.S. treasury, such as securities of the Government
National Mortgage Association, the Export-Import Bank, or the
Student Loan Marketing Association; or which are secured by the
right of the issuer to borrow from the Treasury, such as
securities issued by the Federal Financing Bank or the U.S.
Postal Service; or are supported by the credit of the government
agency or instrumentality itself, such as securities of Federal
Home Loan Banks, Federal Farm Credit Banks, or the Federal
National Mortgage Association.
The Fund's investments in securities issued by corporations or
other business organizations will be rated at the time of
purchase within the top three classifications of Moody's
Investors Service, Inc. (Aaa, Aa, and A) or Standard & Poor's
Corporation (AAA, AA and A). The Fund will use obligations
secured by specific assets of the issuing corporation as well as
unsecured debentures which represent claims on the general credit
of the issuer. (For a description of ratings, see "Fixed Income
Securities Described and Ratings" in the "Statement of Additional
Information.")
In order to enhance portfolio flexibility and to provide for
unexpected redemptions, the Fund may maintain a portion of its
assets in reserves. These reserves will be held in cash or
short-term debt obligations.
The Fund may invest in commercial paper, including variable rate
master demand notes, of companies whose commercial paper is rated
P-1 by Moody's or A-1 by Standard & Poor's. If not rated by
either Moody's or Standard & Poor's, a company's commercial
paper, including variable rate master demand notes, may be
purchased by the Fund if the company has an outstanding bond
issue rated Aa or higher by Moody's or AA or higher by S&P.
Variable rate master demand notes represent a borrowing
arrangement under a letter of agreement between a commercial
paper issuer and an institutional lender. Applicable interest
rates are determined on a formula basis and are adjusted on a
monthly, quarterly, or other term as set out in the agreement.
They vary as to the right of the lender to demand payment. It is
not generally contemplated that such instruments will be traded,
and there is no secondary market for these notes, although they
are redeemable (and thus immediately repayable by the borrower)
at face value, plus accrued interest, at any time. In connection
with the Fund's investment in variable rate master demand notes,
the Fund's investment manager will monitor on an ongoing basis
the earning power, cash flow and other liquidity ratios of the
issuer, and the borrower's ability to pay principal and interest
on demand.
The Fund may invest in certificates of deposit, bankers'
acceptances, and other commercial bank short-term obligations
issued domestically by United States banks having assets of at
least $1 billion and which are members of the Federal Deposit
Insurance Corporation, or such securities which may be issued by
holding companies of such banks.
The Fund may also invest in issues of the United States treasury
or United States government agencies subject to repurchase
agreements entered into with the seller of the issues. The use of
repurchase agreements by the Fund involves certain risks. For a
discussion of repurchase agreements and their risks see page 21.
Maturities of all Fund investments normally will not exceed 20
years at the date of purchase. However, management may extend
maturity limits or change portfolio holdings or vary portfolio
mix when in its judgment economic and market conditions make it
desirable in the best interests of the shareholders.
Although the Fund does not intend to obtain short-term trading
profits, it is possible that it may engage in trading activity in
order to take advantage of opportunities to enhance yield,
protect principal or improve liquidity. Scout Bond Fund's
annualized turnover ratio for the fiscal year ended June 30,
1992, was 24%, for June 30, 1993, it was 19% and for June 30,
1994, it was 9%. The Fund paid no commissions during the fiscal
year ended June 30, 1994.
Scout Money Market Fund
Scout Money Market Fund offers two separate Portfolios, Federal and
Prime, each of which invest in high quality short-term debt
instruments for the purpose of maximizing income consistent with
safety of principal and liquidity. Each Portfolio also seeks to
maintain a constant price of $1.00 per share. Neither Portfolio's
objective can be changed without the approval of a majority of
its outstanding shares. Each Portfolio will limit its holdings to
the types of securities hereinafter described.
Federal Portfolio
The Federal Portfolio will invest only in the following "U.S.
Government Securities":
1. Direct obligations of the U.S. government such as
bills, notes, bonds and other debt securities issued by the U.S.
treasury.
2. Obligations of U.S. government agencies and
instrumentalities which are secured by the full faith and credit
of the U.S. treasury such as securities of the Government
National Mortgage Association, the Export-Import Bank, or the
Student Loan Marketing Association; or which are secured by the
right of the issuer to borrow from the Treasury, such as
securities issued by the Federal Financing Bank or the U.S.
Postal Service; or are supported by the credit of the government
agency or instrumentality itself, such as securities of Federal
Home Loan Banks, or the Federal National Mortgage Association.
The Federal Portfolio also may invest in issues of the United
States treasury or United States government agencies subject to
repurchase agreements entered into with the seller of the issues.
The use of repurchase agreements by the Fund involves certain
risks. For a discussion of repurchase agreements and their risks
see page 21.
Prime Portfolio
The Prime Portfolio may invest in any of the following in
addition to securities eligible for the Federal Portfolio:
1. Certificates of deposit, bankers' acceptances, and
other short-term obligations issued domestically by United States
commercial banks having assets of at least $1 billion and which
are members of the Federal Deposit Insurance Corporation, or
holding companies of such banks.
2. Commercial paper, including variable rate master demand
notes of companies whose commercial paper is rated P-2 or higher
by Moody's Investors Service, Inc. (Moody's) or A-2 or higher by
Standard and Poor's Corporation (S&P). If not rated by either
Moody's or S&P, a company's commercial paper, including variable
rate master demand notes, may be purchased by the Prime Portfolio
if the company has an outstanding bond issue rated Aa or higher
by Moody's or AA or higher by S&P. Variable rate master demand
notes represent a borrowing arrangement under a letter of
agreement between a commercial paper issuer and an institutional
lender. Applicable interest rates are determined on a formula
basis and are adjusted on a monthly, quarterly, or other term as
set out in the agreement. They vary as to the right of the lender
to demand payment. (For a description of money market securities
and their ratings, see "Fixed Income Securities Described and
Ratings" in the "Statement of Additional Information.")
3. Short-term debt securities which are non-convertible
and which have one year or less remaining to maturity at the date
of purchase and which are rated Aa or higher by Moody's or AA or
higher by S&P.
4. Negotiable certificates of deposit and other short-term
debt obligations of savings and loan associations having assets
of at least $1 billion and which are members of the Federal Home
Loan Banks Association and insured by Federal Deposit Insurance
Corporation.
To achieve its objectives the Fund may engage in trading activity
in order to take advantage of opportunities to enhance yield,
protect principal or improve liquidity. This trading activity
should not increase the Fund's expenses, since there are normally
no broker's commissions paid by the Fund for the purchase or sale
of money market instruments. However, a markup or spread may be
paid to a dealer from which the Fund purchases a security.
Pursuant to Rule 2a-7 of the Investment Company Act of 1940, as
amended, the Fund will price its shares according to a procedure
known as amortized cost, and will maintain 100% of its assets in
securities with remaining maturities of 397 days or less, and
limit its investments to those instruments which the Directors of
the Fund determine present minimal credit risks, and which are
eligible investments under the rule. Each Portfolio will maintain
a weighted average maturity of 90 days or less. Since securities
with maturities of one year or less are excluded from calculation
of portfolio turnover, Scout Money Market Fund has no portfolio
turnover ratio. The Fund paid no commissions during the fiscal
year.
Scout Tax-Free Money Market Fund
Scout Tax-Free Money Market Fund's objective is to provide
investors with the highest level of investment income exempt from
federal income tax consistent with its quality and maturity
standards. It also seeks to maintain liquidity and a constant
price of $1.00 per share. The Fund cannot guarantee that these
objectives will be achieved, but through careful management and
diversification it will seek to reduce risk and enhance the
opportunities for higher income and greater price stability. The
Fund will not purchase any security which at the time of purchase
has a maturity more than one year from the date of purchase.
During periods of normal market conditions, the Fund will invest
at least 80% of its total assets (exclusive of cash) in
short-term municipal securities, as defined in this Prospectus.
This fundamental policy will not be changed without shareholder
approval, except that the Fund reserves the right to deviate
temporarily from this policy during extraordinary circumstances
when, in the opinion of management, it is advisable to do so in
the best interest of shareholders, such as when market conditions
dictate a defensive posture in taxable obligations. During the
Fund's fiscal year ended June 30, 1994, 100% of income was exempt
from federal income taxes.
Investments in short-term municipal obligations and notes are
limited to those obligations which at the time of purchase: (1)
are backed by the full faith and credit of the United States; (2)
are rated MIG-1 or MIG-2 by Moody's; or (3) if the obligations or
notes are not rated, of comparable quality as determined by the
Board of Directors. Short-term discount notes are limited to
those obligations rated A-1 by S&P, or Prime-1 by Moody's or
their equivalents as determined by the Board of Directors. If the
short-term discount notes are not rated, they must be of
comparable quality as determined by the Board of Directors. (For
a description of municipal securities and their ratings, see
"Municipal Securities Described and Ratings" in the "Statement of
Additional Information.")
While the Fund normally maintains at
least 80% of the portfolio in municipal securities, it may invest
any remaining balance in taxable money market instruments on a
temporary basis, if management believes this action would be in
the best interest of shareholders. Included in this category are:
obligations of the United States of America, its agents or
instrumentalities; certificates of deposit; bankers' acceptances
and other short-term debt obligations of United States banks with
total assets of $1 billion or more; and commercial paper rated
A-2 or better by Standard & Poor's Corp. or Prime-2 or better by
Moody's Investors Service, Inc., or certain rights to acquire
these securities.
The Fund reserves the right to hold cash reserves as management
deems necessary for defensive or emergency purposes.
It is the policy of the Fund not to invest more than 25% of its
assets in any one classification of municipal securities, except
project notes or other tax-exempt obligations which are backed by
the U.S. government.
Should the rating organizations used by the Fund cease to exist
or change their systems, the Fund will attempt to use other
comparable ratings as standards for its investments in municipal
securities in accordance with its investment policies.
To achieve its objectives the Fund may engage in trading activity
in order to take advantage of opportunities to enhance yield,
protect principal or improve liquidity. This trading activity
should not increase the Fund's expenses since there are normally
no brokers' commissions paid by the Fund for the purchase or sale
of money market instruments. However, a markup or spread may be
paid to a dealer from which the Fund purchases a security.
Scout Tax-Free Money Market Fund may invest in issues of the United
States treasury or United States government agencies subject to
repurchase agreements entered into with the seller of the issue.
The use of repurchase agreements by the Fund involves certain
risks. For a discussion of repurchase agreements and their risks
see page 21.
Scout WorldWide Fund
Scout WorldWide Fund intends to invest in a diversified portfolio
of equity securities (common stocks and securities convertible
into common stocks) of established companies either located in
the United States or whose primary business is carried on outside
the country. During its initial period of operations, while the
Fund has net assets under $10 million, it is anticipated that
American Depository Receipts (ADR's), which represent foreign
securities and are traded on U.S. Exchanges or in the
over-the-counter market, will constitute the bulk of the Fund's
portfolio. However, the Fund reserves the right to invest
directly in foreign securities or to purchase European Deposit
Receipts (EDR's) and International Depository Receipts (IDR's),
in bearer form, which are designed for use in European and other
securities markets. Limiting the Fund investments to ADR's, may
have the effect of limiting the Fund's investment alternatives
and reducing the Fund's potential diversification resulting in
additional risk to the Fund, however, management believes that
use of ADR's in the initial period of operations will be a
cost-effective method of participating in international
securities, and will lessen the exposure of the Fund and its
shareholders to various special risks inherent in foreign
securities investments (See "Special Risk Considerations").
The Fund will use the portfolio management policies described
below to attempt to generate a favorable total return consisting
of interest, dividend and other income, if any, and appreciation
in the value of the Fund's portfolio securities by investing in
equity securities which in the opinion of investment counsel,
offer good growth potential and in many cases pay dividends. The
Fund will look at such factors as the company's assets,
personnel, sales, earnings and location of its corporate
headquarters to determine whether more than 50% of such assets,
personnel, sales or earnings are located outside the United
States and therefore the company's primary business is carried on
outside the United States. The Fund diversifies its investments
among various countries and a number of different industries.
There is no guarantee that the Fund's objective will be achieved.
Investments in international securities involve risks in addition
to those risks associated with investments in the United States
(See "Special Risk Considerations" on page 22). Therefore, the
Fund should be considered only as a means for international
diversification and not as a complete investment program. The
Fund is designed for long-term investors who are able to accept
the risks of international investing. The investment objective of
the Fund cannot be changed without the approval of the holders of
a majority of the Fund's outstanding shares.
The Fund is designed to provide investors with a diversified
participation in international businesses. Over the years, some
foreign businesses have been especially successful in their
particular industries and some foreign stock markets have
outperformed the American markets. Foreign securities markets do
not always move in parallel with the U.S. securities markets, so
investing in international securities can provide diversification
advantages. Because the underlying securities of the ADRs' in
which the Fund invests trade primarily in foreign markets, any
rise or fall of the U.S. dollar in relation to foreign currencies
will affect their U.S. dollar value and thereby will affect the
investment performance of the Fund. A change in the value of any
foreign currency relative to the dollar will result in a
corresponding change in the dollar value of Fund assets whose
underlying securities are denominated or traded in that currency.
The Fund primarily invests in securities of seasoned companies
which are listed on U.S. stock exchanges and which the investment
counsel considers to have attractive characteristics in terms of
profitability, growth and financial resources."Seasoned" and
"established" companies are those companies which have been in
existence for at least 3 years and, in the opinion of the
investment counsel, are known for the quality and acceptance of
their products or services and for their ability to generate
profits and in many cases pay dividends. The Fund may invest in
fixed-income securities of foreign governments or companies when
the investment counsel believes that prevailing market, economic,
political or currency conditions warrant such investments. While
most foreign securities are not subject to standard credit
ratings, the investment counsel intends to select "investment
grade" issues of foreign debt securities which are comparable to
a Baa or higher rating by Moody's Investors Service, Inc. or a
BBB or higher rating by Standard and Poor's Corporation, based on
available information, and taking into account liquidity and
quality issues. Securities rated BBB or Baa are considered to be
medium grade and have speculative characteristics. Equity
securities of non-United States companies will be selected on the
same criteria as securities of United States domestic companies.
The Fund may invest in securities which are not listed on an
exchange. Generally, the volume of trading in an unlisted common
stock is less than the volume of trading in a listed stock. This
means that the degree of market liquidity of some stocks in which
the Fund invests may be relatively limited. When the Fund
disposes of such a stock it may have to offer the shares at a
discount from recent prices or sell the shares in small lots over
an extended period of time. The Fund does not intend to hold
assets in its portfolio in excess of 5% of total assets in
securities whose ratings have dropped below investment grade. The
Investment Counsel will review such securities and determine
appropriate action to take with respect to such securities.
In order to expedite settlement of portfolio transactions and to
minimize currency value fluctuations, the Fund may purchase
foreign currencies and/or engage in forward foreign currency
transactions. The Fund will not engage in forward foreign
currency exchange contracts for speculative purposes. A forward
foreign currency exchange contract involves an obligation to
purchase or sell a specific currency at a future date, which may
be any fixed number of days from the date of the contract agreed
upon by the parties, at a price set at the time of the contract.
These contracts may be bought or sold to protect the Fund, to
some degree, against a possible loss resulting from an adverse
change in the relationship between foreign currencies and the
U.S. dollar. This method of protecting the value of the Fund's
investment securities against a decline in the value of a
currency does not eliminate fluctuations in the underlying prices
of the securities. It establishes a rate of exchange which one
can achieve at some future point in time. Although such contracts
tend to minimize the risk of loss due to a decline in the value
of the hedged currency, at the same time, they tend to limit any
potential gain which might result should the value of such
currency increase.
The Fund's dealings in forward foreign exchange will be limited
to hedging involving either specific transactions or portfolio
positions. Transaction hedging is the purchase or sale of forward
foreign currency with respect to specific receivables or payables
of the Fund accruing in connection with the purchase and sale of
its portfolio securities, the sale and redemption of shares of
the Fund or the payment of dividends and distributions by the
Fund. Position hedging is the sale of forward foreign currency
with respect to portfolio security positions denominated or
quoted in such foreign currency. The Fund will not speculate in
foreign forward exchange. Moreover, it may not be possible for
the Fund to hedge against a devaluation that is so generally
anticipated that the Fund is not able to contract to sell the
currency at a price above the devaluation level it anticipates.
The Fund intends to diversify investments broadly among countries
and normally to have represented in the portfolio business
activities of not less than three foreign countries. Generally,
the Fund does not intend to invest more than 25% of its total
assets in any one particular country or securities issued by a
foreign government, its agencies or instrumentalities in the
foreseeable future. However, the Fund may, at times, temporarily
invest a substantial portion of its assets in one or more of such
countries if economic and business conditions warrant such
investments.
Necessary reserves will be held in cash or short-term debt
obligations, including repurchase agreements (see below), readily
changeable to cash. The management believes, however, that there
may be times when the shareholders' interests are best served and
the Fund's investment objectives are most likely to be achieved,
by investing in securities convertible into common stocks rated A
or better by Standard & Poor's or Moody's, or defensive issues
such as high-grade bonds or other defensive issues rated A or
better by Standard & Poor's or Moody's. It retains the freedom to
administer the portfolio of the Fund accordingly when, in its
judgment, economic and market conditions make such a course
desirable.
Scout WorldWide Fund's annualized turnover ratio for the fiscal
year ended December 31, 1993, was 2% and for December 31, 1994 it was
24%. Commissions paid during the
fiscal year ended December 31, 1994 amounted to $20,307.
REPURCHASE AGREEMENTS
A repurchase agreement involves the sale of securities to a Fund
with the concurrent agreement by the seller to repurchase the
securities at the Fund's cost plus interest at an agreed rate
upon demand or within a specified time, thereby determining the
yield during the purchaser's period of ownership. The result is a
fixed rate of return insulated from market fluctuations during
such period. Under the Investment Company Act of 1940, repurchase
agreements are considered loans by the Funds.
The Funds will enter into such repurchase agreements only with
United States banks (including affiliates of UMB Financial
Corporation) having assets in excess of $1 billion which are
members of the Federal Deposit Insurance Corporation, and with
certain securities dealers who meet the qualifications set from
time to time by the Board of Directors. In those cases where
securities issued by affiliate banks of UMB Financial Corporation
are purchased, no preference will be given to such issuers over
other issuers. The term to maturity of a repurchase agreement
normally will be no longer than a few days. Repurchase
agreements and other illiquid securities will not exceed 10% of
the total assets of a Fund. Repurchase agreements maturing in
more than seven days will not exceed 10% of the total assets of
any Fund.
RISK FACTORS APPLICABLE TO REPURCHASE AGREEMENTS
The use of repurchase agreements involves certain risks. For
example, if the seller of the agreement defaults on its
obligation to repurchase the underlying securities at a time when
the value of these securities has declined, the Fund may incur a
loss upon disposition of them. If the seller of the agreement
becomes insolvent and subject to liquidation or reorganization
under the Bankruptcy Code or other laws, disposition of the
underlying securities may be delayed pending court proceedings.
Finally, it is possible that the Fund may not be able to perfect
its interest in the underlying securities. While the Fund's
management acknowledges these risks, it is expected that they can
be controlled through stringent security selection criteria and
careful monitoring procedures.
RISK FACTORS PECULIAR TO MONEY MARKET INSTRUMENTS
The yield and the principal value of money market instruments are
sensitive to short-term lending conditions, and it is possible
that an issuer may default. The Fund will seek to minimize these
risks through portfolio diversification, careful portfolio
selection among securities considered to be high quality and by
maintaining short average maturities.
RISK FACTORS APPLICABLE TO CONCENTRATION OF ASSETS IN THE BANKING
INDUSTRY
Concentration of assets in the banking industry may increase the
element of risk because banks are highly leveraged. The manager
believes this risk is reduced because purchases will be limited
to banks which are members of the Federal Deposit Insurance
Corporation, although securities purchased by the Fund may not be
FDIC insured deposits. Furthermore, the manager will carefully
evaluate the financial ratios and asset characteristics of banks
in which the Funds might invest, and reject those banks whose
financial ratios and asset characteristics are not, in the
manager's opinion, sufficiently strong.
RISK FACTORS APPLICABLE TO FOREIGN INVESTMENTS
From time to time, Scout WorldWide Fund may invest in companies
located in developing countries. A developing country is
generally considered to be a country which is in the initial
stages of its industrialization cycle with a low per capita gross
national product. Compared to investment in the United States and
other developed countries, investing in the equity and fixed
income markets of developing countries involves exposure to
relatively unstable governments, economic structures that are
generally less mature and based on only a few industries and
securities markets which trade a small number of securities.
Prices on securities exchanges in developing countries generally
will be more volatile than those in developed countries. The Fund
will not invest more than 20% of its total assets in companies
located in developing countries.
Under normal circumstances the Fund will invest at least 65% of
its assets in equity securities of foreign issuers. However, to
meet the liquidity needs of the Fund or when the Fund believes
that investments should be deployed in a temporary defensive
posture because of economic or market conditions, the Fund may
invest all or a major portion of its assets in short-term debt
securities denominated in U.S. dollars, including U.S. treasury
bills and other securities of the U.S. government and its
agencies, bankers' acceptances and certificates of deposit rated
"A" or better by Standard & Poor's Corporation or Moody's
Investors Service as well as enter into repurchase agreements
maturing in seven days or less with U.S. banks and broker-dealers
which are collateralized by such securities. The Fund may also
hold cash and time deposits in foreign banks, denominated in any
major foreign currency.
INVESTMENT RESTRICTIONS
In addition to the policies set forth under the caption
"Investment Objective and Portfolio Management Policy" the Funds
are subject to certain other restrictions which may not be
changed without approval of the "holders of a majority of the
outstanding shares" of the Fund or the affected Portfolio. Among
these restrictions, the more important ones are that the Fund
(Portfolio) will not purchase the securities of any issuer if
more than 5% of the Fund's total assets would be invested in the
securities of such issuer, or the Fund would hold more than 10%
of any class of securities of such issuer; borrow money in excess
of 10% of total assets taken at market value, and then only from
banks as a temporary measure for extraordinary or emergency
purposes; will not borrow to increase income (leveraging) but
only to facilitate redemption requests which might otherwise
require untimely dispositions of portfolio securities; will repay
all borrowings before making additional investments (interest
paid on such borrowings will reduce net income). The full text of
these restrictions is set forth in the "Statement of Additional
Information."
There is no limitation with respect to investments in U.S.
Treasury Bills, or other obligations issued or guaranteed by the
federal government, its agencies and instrumentalities.
PERFORMANCE MEASURES
From time to time, each of the Funds may advertise its
performance in various ways, as summarized below. Further
discussion of these matters also appears in the "Statement of
Additional Information." A discussion of Scout Stock Fund, Scout
Regional Fund, Scout Bond Fund and Scout WorldWide Fund performance
is included in the Fund's Annual Report to Shareholders which is
available from the Fund upon request at no charge.
Yield
From time to time, each portfolio of Scout Money Market Fund and
Scout Tax-Free Money Market Fund may advertise "yield" and
"effective yield." The "yield" of a Fund refers to the income
generated by an investment in a Fund over a seven-day period
(which period will be stated in the advertisement). This income
is then "annualized." That is, the amount of income generated by
the investment during that week is assumed to be generated each
week over a 52-week period and is shown as a percentage of the
investment. The "effective yield" is calculated similarly, but,
when annualized, the income earned by an investment in a Fund is
assumed to be reinvested. The "effective yield" will be slightly
higher than the "yield" because of the compounding effect of this
assumed reinvestment.
Each portfolio of Scout Money Market Fund, and Scout Tax-Free Money
Market Fund may quote their yields in advertisements or in
reports to shareholders. Yield information may be useful in
reviewing the performance of these Funds and in providing a basis
for comparison with other investment alternatives. However, since
the net investment income of these Funds changes in response to
fluctuations in interest rates and Fund expenses, any given yield
quotations should not be considered representative of the Fund's
yields for any future period. Current yield and price quotations
for the Scout Funds may be obtained by telephoning 1-800-996-2862.
Total Return
Scout Stock Fund, Scout Regional Fund, Scout Bond Fund and Scout
WorldWide Fund may advertise "average annual total return" over
various periods of time. Such total return figures show the
average percentage change in value of an investment in a Fund
from the beginning date of the measuring period to the end of the
measuring period. These figures reflect changes in the price of
the Funds' shares and assume that any income dividends and/or
capital gains distributions made by the Funds during the period
were reinvested in shares of the Fund. Figures will be given for
recent one-, five- and ten-year periods (if applicable), and may
be given for other periods as well (such as from commencement of
a Fund's operations, or on a year-by-year basis). When
considering "average" total return figures for periods longer
than one year, it is important to note that a Fund's annual total
return for any one year in the period might have been greater or
less than the average for the entire period.
Performance Comparisons
In advertisements or in reports to shareholders, each of the
Funds may compare its performance to that of other mutual funds
with similar investment objectives and to stock or other relevant
indices. For example, Scout Stock, Scout Regional, Scout WorldWide and
Scout Bond Funds may compare their performance to rankings prepared
by Lipper Analytical Services, Inc. (Lipper), a widely recognized
independent service which monitors the performance of mutual
funds. Scout Stock Fund or Scout Regional Fund may also compare its
performance to the Standard & Poor's 500 Stock Index (S&P 500),
an index of unmanaged groups of common stocks, the Dow Jones
Industrial Average, a recognized unmanaged index of common stocks
of 30 industrial companies listed on the NYSE, or the Consumer
Price Index. Scout Bond Fund may compare its performance to the
Shearson/Lehman Government/ Corporate Index, an unmanaged index
of government and corporate bonds. Performance information,
rankings, ratings, published editorial comments and listings as
reported in national financial publications such as Kiplinger's
Personal Finance Magazine, Business Week, Institutional Investor,
The Wall Street Journal, Mutual Fund Forecaster, No-Load
Investor, Money, Forbes, Fortune and Barron's may also be used in
comparing performance of Scout Stock Fund, Scout Regional Fund and
Scout Bond Fund. Similarly, each Portfolio of Scout Money Market
Fund, and Scout Tax-Free Money Market Fund may compare their yields
to the Donoghue's Money Fund Average and the Donoghue's
Government Money Fund Average which are averages compiled by
Donoghue's Money Fund Report, a widely recognized independent
publication that monitors the performance of money market mutual
funds, or to the average yield reported by the Bank Rate Monitor
for money market deposit accounts offered by the 50 leading banks
and thrift institutions in the top five standard metropolitan
statistical areas. Performance comparisons should not be
considered as representative of the future performance of any
Fund. Further information regarding the performance of the Scout
Funds is contained in the "Statement of Additional Information."
Performance rankings, recommendations, published editorial
comments and listings reported in Money, Barron's, Kiplinger's
Personal Finance Magazine, Financial World, Forbes, U.S. News &
World Report, Business Week, The Wall Street Journal, Investors
Business Daily, USA Today, Fortune and Stanger's may also be
cited (if the Fund is listed in any such publication) or used for
comparison, as well as performance listings and rankings from
Morningstar Mutual Funds, Personal Finance, Income and Safety,
The Mutual Fund Letter, No-Load Fund Investor, United Mutual Fund
Selector, No-Load Fund Analyst, No- Load Fund X, Louis Rukeyser's
Wall Street newsletter, Donoghue's Money Letter, CDA Investment
Technologies, Inc., Wiesenberger Investment Companies Service,
and Donoghue's Mutual Fund Almanac.
HOW TO PURCHASE SHARES
You must specify the Fund in which you desire to invest on your
application form. Failure to do so will result in the application
and your check or bank wire being returned to you.
Shares are purchased from the Fund at net asset value (no sales
charge) next computed after a purchase order has become
effective, through its agent, Jones & Babson, Inc.,
P. O. Box 410498, Kansas City, MO 64141-0498.
For information call toll free 1-800-996-2862.
Purchase orders for Scout Stock Fund, Scout Regional Fund, Scout Bond
Fund and Scout WorldWide Fund become effective upon receipt by the
Fund. Purchase orders for Scout Money Market Fund and Scout Tax-Free
Money Market Fund become effective when received in the form of
federal funds or converted to federal funds and accepted by the
Fund. Payments transmitted by federal funds wire can become
effective upon receipt. Payments transmitted by other bank wire
may take longer to be converted to federal funds. (Federal funds
are deposits made by member banks of the Federal Reserve System
with the Federal Reserve Bank which can be electronically
transferred from one member bank to another.)
The Funds reserve the right in their sole discretion to withdraw
all or any part of the offerings made by the prospectus or to
reject purchase orders when, in the judgment of management, such
withdrawal or rejection is in the best interest of a Fund and its
shareholders. The Funds also reserve the right at any time to
waive or increase the minimum requirements applicable to initial
or subsequent investments with respect to any person or class of
persons, which includes shareholders of the Funds' special
investment programs. The Fund reserves the right to refuse to
accept orders for fund shares unless accompanied by payment,
except when a responsible person has indemnified the Fund against
losses resulting from the failure of investors to make payment.
In the event that the Fund sustains a loss as the result of
failure by a purchaser to make payment, the Fund's underwriter,
Jones & Babson, Inc. will cover the loss.
INITIAL INVESTMENTS
Initial investments - By mail. You may open an account and make
an investment by completing and signing the application which
accompanies this prospectus. Make your check ($1,000 minimum)
payable to UMB Bank, n.a. Mail your application and check to:
The Scout Fund Group
P. O. Box 410498
Kansas City, Missouri 64141-0498
Initial investments - By wire. You may purchase shares of the
Fund by wiring the purchase price ($1,000 minimum) through the
Federal Reserve Bank to the custodian, UMB Bank, n.a. Prior to
sending your money, you must call the Fund toll free
1-800-996-2862 and provide it with the identity of the registered
account owner, the registered address, the Social Security or Tax
Identification Number of the registered owner, the amount being
wired, the name and telephone number of the wiring bank and the
person to be contacted in connection with the order. You will
then be provided a Fund account number, after which you should
instruct your bank to wire the specified amount, along with the
account number and the account registration to:
UMB Bank, n.a.
Kansas City, Missouri, ABA #101000695
For: Scout Money Market Fund, Inc.
Prime Portfolio/AC = 980118-6957
Federal Portfolio/AC = 980118-6965
Scout Stock Fund, Inc./AC = 980118-7023
Scout Regional Fund, Inc./
AC = 987007-7108
Scout Bond Fund, Inc./AC = 980118-7015
Scout Tax-Free Money Market Fund, Inc./
AC = 980118-6981
Scout WorldWide Fund, Inc./AC= 987047-5332
(As appropriate)
For Account No. (insert assigned Fund account number and name in
which account is registered.)
A completed application must be sent to the Fund as soon as
possible so the necessary remaining information can be recorded
in your account.
No redemptions can occur until this is done.
INVESTMENTS SUBSEQUENT TO INITIAL INVESTMENT
You may add to your Fund account at any time in amounts of $100
or more if purchases are made by mail, or $500 or more if
purchases are made by wire.
Checks should be mailed to the Funds at their address, but made
payable to UMB Bank, n.a. Always identify your account number or
include the detachable reminder stub which accompanies each
confirmation.
Wire share purchases should include your account registration,
your account number and the Scout Fund in which you are purchasing
shares. It also is advisable to notify the Fund by telephone that
you have sent a wire purchase order to the bank.
TELEPHONE INVESTMENT SERVICE
To use the Telephone Investment Service, you must first establish
your Fund account and authorize telephone orders in the
application form, or, subsequently, on a special authorization
form provided upon request. If you elect the Telephone Investment
Service, you may purchase Fund shares by telephone and authorize
the Fund to draft your checking account for the cost of the
shares so purchased. You will receive the next available price
after the Fund has received your telephone call. Availability and
continuance of this privilege is subject to acceptance and
approval by the Fund and all participating banks. During periods
of increased market activity, you may have difficulty reaching
the Fund by telephone, in which case you should contact the Fund
by mail or telegraph. The Fund will not be responsible for the
consequences of delays including delays in the banking or Federal
Reserve wire systems.
The Fund will employ reasonable procedures to confirm that
instructions communicated by telephone are genuine, and if such
procedures are not followed, the Fund may be liable for losses
due to unauthorized or fraudulent instructions. Such procedures
may include, but are not limited to requiring personal
identification prior to acting upon instructions received by
telephone, providing written confirmations of such transactions,
and/or tape recording of telephone instructions.
The Funds reserve the right to initiate a charge for this service
and to terminate or modify any or all of the privileges in
connection with this service at any time upon 15 days written
notice to shareholders, and to terminate or modify the privileges
without prior notice in any circumstances where such termination
or modification is in the best interest of the Fund and its
investors.
AUTOMATIC MONTHLY INVESTMENT PLAN
You may elect to make monthly investments in a constant dollar
amount from your checking account ($100 minimum). The Fund will
draft your checking account on the same day each month in the
amount you authorize in your application, or, subsequently, on a
special authorization form provided upon request. Availability
and continuance of this privilege is subject to acceptance and
approval by the Fund and all participating banks. If the date
selected falls on a day upon which the Fund shares are not
priced, investment will be made on the first date thereafter upon
which Fund shares are priced. The Fund will not be responsible
for the consequences of delays including delays in the banking or
Federal Reserve wire systems.
The Funds reserve the right to initiate a charge for this service
and to terminate or modify any or all of the privileges in
connection with this service at any time upon 15 days written
notice to shareholders, and to terminate or modify the privileges
without prior notice in any circumstances where such termination
or modification is in the best interest of the Fund and its
investors.
HOW TO REDEEM SHARES
Shareholders registered in the stock records of the Funds may
withdraw all or part of their investment by redeeming shares for
which a Fund has received unconditional payment in the form of
federal funds or such payment has been converted to federal funds
and accepted by the Fund. For your convenience, and to enable
your account to continue earning daily dividends as long as
possible, Scout Money Market Fund and Scout Tax-Free Money Market
Fund offer expedited redemption procedures by telephone/telegraph
and draft ("check"), in addition to normal mail procedures.
In each instance you must comply with the general requirements
relating to all redemptions as well as with specific requirements
set out for the particular redemption method you select. If you
wish to expedite redemptions by using the telephone/telegraph or
draft writing (check) privileges, for Scout Money Market or Scout
Tax-Free Money Market Fund, you should carefully note the special
requirements and limitations relating to these methods.
All redemption requests must be transmitted to the Funds,
P. O. Box 410498, Kansas City, Missouri 64141-0498.
Shareholders who have authorized telephone
redemption for Scout Money Market Fund or Scout Tax-Free Money Market
Fund may call toll free 1-800-996-2862. The Funds will redeem shares at
the price (net asset value per share) next computed after receipt
of a redemption request in "good order." (See "How Share Price is
Determined,".)
The Funds will endeavor to transmit redemption proceeds to the
proper party, as instructed, as soon as practicable after a
redemption request has been received in "good order" and
accepted, but in no event later than the seventh day thereafter.
Transmissions are made by mail unless an expedited method has
been authorized and specified in the redemption request. The Fund
will not be responsible for the consequences of delays including
delays in the banking or Federal Reserve wire systems.
Redemptions will not become effective until all documents in the
form required have been received. In the case of redemption
requests made within 15 days of the date of purchase, the Fund
will delay transmission of proceeds until such time as it is
certain that unconditional payment in federal funds has been
collected for the purchase of shares being redeemed or 15 days
from the date of purchase. You can avoid the possibility of delay
by paying for all of your purchases with a transfer of federal
funds.
Where additional documentation is normally required to support
redemptions as in the case of corporations, fiduciaries, and
others who hold shares in a representative or nominee capacity
such as certified copies of corporate resolutions, or
certificates of incumbency, or such other documentation as may be
required under the Uniform Commercial Code or other applicable
laws or regulations, it is the responsibility of the shareholder
to maintain such documentation on file and in a current status. A
failure to do so will delay the redemption. If you have questions
concerning redemption requirements, please write or telephone the
Funds well ahead of an anticipated redemption in order to avoid
any possible delay.
Requests which are subject to special conditions or which specify
an effective date other than as provided herein cannot be
accepted. Expedited redemption privileges are available for Scout
Money Market and Scout Tax-Free Money Market Funds only.
The right of redemption may be suspended or the date of payment
postponed beyond the normal seven-day period when the New York
Stock Exchange is closed or under emergency circumstances as
determined by the Securities and Exchange Commission. Additional
details are set forth in the "Statement of Additional
Information."
With respect to Scout Money Market and Scout Tax-Free Money Market
Funds, shares redeemed will be entitled to receive all dividends
declared through the day preceding the date of redemption. If you
redeem all of the shares in your account, in addition to the
share redemption check, a separate check representing all
dividends declared but unpaid on the shares redeemed will be
distributed on the next dividend payment date. Any amount due you
in your declared but unpaid dividend account cannot be redeemed
by draft.
Withdrawal By Mail - Shares may be redeemed by mailing your
request to the Funds. To be in "good order" the request must
include the following:
(1) A written redemption request or stock assignment (stock
power) containing the genuine signature of each registered owner
exactly as the shares are registered, with clear identification
of the account by registered name(s), account number and the
number of shares or the dollar amount to be redeemed;
(2) any outstanding stock certificates representing shares
to be redeemed;
(3) signature guarantees as required; and (See Signature
Guarantees.)
(4) any additional documentation which the Fund may deem
necessary to insure a genuine redemption such as an application
if one is not on file, or in the case of corporations,
fiduciaries, and others who hold shares in a representative or
nominee capacity (See below).
Where additional documentation is normally required to support
redemptions as in the case of corporations, fiduciaries, and
others who hold shares in a representative or nominee capacity
such as certified copies of corporate resolutions, or
certificates or incumbency, or such other documentation as may be
required under the Uniform Commercial Code or other applicable
laws or regulations, it is the responsibility of the shareholder
to maintain such documentation on file and in a current status. A
failure to do so will delay the redemption. If you have questions
concerning redemption requirements, please write or telephone the
Fund well ahead of an anticipated redemption in order to avoid
any possible delay.
Signature Guarantees are required in connection with all
redemptions by mail, or changes in share registration, except as
hereinafter provided. These requirements may be waived by the
Fund in certain instances where it appears reasonable to do so
and will not unduly affect the interests of other shareholders.
Signature(s) must be guaranteed by an "eligible Guarantor
institution" as defined under Rule 17Ad-15 under the Securities
Exchange Act of 1934. Eligible guarantor institutions include:
(1) national or state banks, savings associations, savings and
loan associations, trust companies, savings banks, industrial
loan companies and credit unions; (2) national securities
exchanges, registered securities associations and clearing
agencies; or (3) securities broker/dealers which are members of a
national securities exchange or clearing agency or which have a
minimum net capital of $100,000. A notarized signature will not
be sufficient for the request to be in proper form.
Signature guarantees will be waived for mail redemptions of
$10,000 or less, but they will be required if the checks are to
be payable to someone other than the registered owner(s), or are
to be mailed to an address different from the registered address
of the shareholder(s), or where there appears to be a pattern of
redemptions designed to circumvent the signature guarantee
requirement, or where the Funds have other reason to believe that
this requirement would be in the best interests of the Funds and
their shareholders.
Withdrawal By Telephone or Telegraph - (SCOUT MONEY MARKET AND SCOUT
TAX-FREE MONEY MARKET FUNDS ONLY) - you may withdraw any amount
of $1,000 or more by telephone toll free 1-800-996-2862, or by
telegram to the Fund's address. Telephone/telegraph redemption
authorizations signed by all registered owners with signatures
guaranteed must be on file with the Funds before you may redeem
by telephone or telegraph. The signature guarantee requirement
may be waived by the Funds if the request for this redemption
method is made at the same time the initial application to
purchase shares is submitted.
All communications must include the Fund's name, Portfolio name
(if applicable), your account number, the exact registration of
your shares, the number of shares or dollar amount to be
redeemed, and the identity of the bank and bank account (name and
number) to which the proceeds are to be wired. This procedure may
only be used for non-certificated shares held in open account.
For the protection of shareholders, your redemption instructions
can only be changed by filing with the Funds new instructions on
a form obtainable from the Funds which must be properly signed
with signature(s) guaranteed.
Telephone or telegraph redemption proceeds may be transmitted to
your pre-identified bank account either by wire or mail to a
domestic commercial bank which is a member of the Federal Reserve
System, or by credit to such account with UMB Bank, n.a. as
designated by you on your pre-authorization form. If you elect to
have proceeds wired to your bank, and your request is received
prior to 12:00 noon (Central Time), proceeds normally will be
wired the following business day. If your request is received
during the day thereafter, proceeds normally will be wired on the
second business day following the day of receipt of your request.
It is the Scout Funds' present policy not to assess wire charges on
amounts of $5,000 or more, or on amounts credited to a bank
account with UMB Bank, n.a. A charge of $5 normally will be made
on lesser amounts wired to other banks, but this charge may be
reduced or waived in connection with master accounts. If you
elect to have proceeds credited to your account with UMB Bank,
n.a., and your request is received prior to 10:00 A.M. (Central
Time), proceeds normally will be credited that day. Normally,
your bank account will be credited on the following business day
if your request is received after 10:00 A.M. (Central Time). The
Funds reserve the right to change their policy or to refuse a
telephone or telegraph redemption request or require additional
documentation to assure a genuine redemption, and, at their
option, may pay such redemption by wire or check and may limit
the frequency or the amount of such request. The Funds reserve
the right to terminate or modify any or all of the services in
connection with this privilege at any time without prior notice.
Neither the Funds nor Jones & Babson, Inc. assumes responsibility
for the authenticity of withdrawal instructions, and there are
provisions on the authorization form limiting their liability in
this respect.
Withdrawal by Draft ("Check") - (SCOUT MONEY MARKET AND SCOUT
TAX-FREE MONEY MARKET FUNDS ONLY) - you may elect this method of
redemption on your original application, or on a form which will
be sent to you upon request. All signatures must be guaranteed
unless this method of redemption is elected on your original
application. The authorization form, which all registered owners
must sign, also contains a provision relieving the Funds and
Jones & Babson, Inc. from liability for loss, if any, which you
may sustain arising out of a non-genuine redemption pursuant to
this redemption feature. Any additional documentation required to
assure a genuine redemption must be maintained on file with the
Funds in such a current status as the Funds may deem necessary. A
new form properly signed and with the signature(s) guaranteed
must be received and accepted by the Funds before authorized
redemption instructions already on file with the Funds can be
changed.
You will be provided a supply of drafts ("checks") which may be
drawn on the Funds. Drafts must be deposited in a bank account of
the payee to be cleared through the banking system in order to be
presented to the Funds for payment through UMB Bank, n.a. An
additional supply of drafts will be furnished upon request. There
presently is no charge for these drafts or their clearance.
However, the Funds and UMB Bank, n.a. reserve the right to make
reasonable charges and to terminate or modify any or all of the
services in connection with this privilege at any time and
without prior notice.
These drafts may be signed by any joint owner unless otherwise
indicated on the account application. They may be made payable to
the order of any person in the amount of $500 or more. The bank
of the draft payee must present it for collection through UMB
Bank, n.a. which delivers it to the Fund for redemption of a
sufficient number of shares to cover the amount of the draft.
Dividends will be earned by the shareholder on the draft proceeds
until the day preceding the date it clears at UMB Bank, n.a.
Drafts will not be honored by the Funds and will be returned
unpaid if there are insufficient open account shares to meet the
withdrawal amount. The Funds reserve the right to withhold the
bank's redemption request until they determine that they have
received unconditional payment for at least the number of shares
required to be redeemed to make payment on the draft. If such a
delay is necessary, the bank may return the draft not accepted
(by the Funds) because there are not sufficient shares for which
good payment has been received in the shareholder account.
Dividends declared but not yet paid to you cannot be withdrawn by
drafts. Drafts (checks) may not be used as a redemption form.
Due to the high cost of maintaining smaller accounts, the
Directors have authorized the Funds to close shareholder accounts
where their value falls below the current minimum initial
investment requirement at the time of initial purchase as a
result of redemptions and not as the result of market action, and
remains below this level for 60 days after each such shareholder
account is mailed a notice of: (1) the Fund's intention to close
the account, (2) the minimum account size requirement, and (3)
the date on which the account will be closed if the minimum size
requirement is not met.
SYSTEMATIC REDEMPTION PLAN
If you own shares in an open account valued at $10,000 or more,
and desire to make regular monthly or quarterly withdrawals
without the necessity and inconvenience of executing a separate
redemption request to initiate each withdrawal, you may enter
into a Systematic Withdrawal Plan by completing forms obtainable
from the Fund. For this service, the manager may charge you a fee
not to exceed $1.50 for each withdrawal. Currently the manager
assumes the additional expenses arising out of this type of plan,
but it reserves the right to initiate such a charge at any time
in the future when it deems it necessary. If such a change is
imposed, participants will be provided 30 days notice.
Subject to a $50 minimum, you may withdraw each period a
specified dollar amount. Shares also may be redeemed at a rate
calculated to exhaust the account at the end of a specified
period of time.
Dividends and capital gains distributions must be reinvested in
additional shares. Under all withdrawal programs, liquidation of
shares in excess of dividends and distributions reinvested will
diminish and may exhaust your account, particularly during a
period of declining share values.
You may revoke or change your plan or redeem all of your shares
remaining at any time. Withdrawal payments will be continued
until the shares are exhausted or until the Fund or you terminate
the plan by written notice to the other.
HOW TO EXCHANGE SHARES BETWEEN SCOUT FUNDS
Shareholders may exchange their Fund shares which have been held
in open account for 15 days or more, and for which good payment
has been received, for identically registered shares of any other
Scout Fund, or any other Portfolio in the Scout Fund Group, which is
legally registered for sale in the state of residence of the
investor, provided that the minimum amount exchanged from a Fund
or Portfolio has a value of $1,000 or more and meets the minimum
investment requirement of the Fund or Portfolio into which it is
exchanged. An exchange between two Scout Funds is treated as a sale
of the shares from which the exchange occurs and a purchase of
shares of the fund into which the exchange occurs. Exchanging
shareholders will receive the next quoted prices for their shares
after the request is received in "good order" (See "How Share
Price is Determined.")
To authorize the Telephone/Telegraph Exchange Privilege, all
registered owners must authorize this privilege on the original
application, or the Fund must receive a special authorization
form, provided upon request. During periods of increased market
activity, you may have difficulty reaching the Fund by telephone,
in which case you should contact the Fund by mail or telegraph.
The Fund reserves the right to initiate a charge for this service
and to terminate or modify any or all of the privileges in
connection with this service at any time and without prior notice
under any unforeseen circumstances where continuance of these
privileges would be detrimental to the Fund or its shareholders
such as an emergency, or where the volume of such activity
threatens the ability of the Fund to conduct business, or under
any other circumstances, upon 60 days written notice to
shareholders. The Fund will not be responsible for the
consequences of delays including delays in the banking or Federal
Reserve wire systems.
The Fund will employ reasonable procedures to confirm that
instructions communicated by telephone are genuine, and if such
procedures are not followed, the Fund may be liable for losses
due to unauthorized or fraudulent instructions. Such procedures
may include, but are not limited to requiring personal
identification prior to acting upon instructions received by
telephone, providing written confirmations of such transactions,
and/or tape recording of telephone instructions.
Exchanges by mail may be accomplished by a written request
properly signed by all registered owners identifying the account
by name and number, the number of shares or dollar amount to be
redeemed for exchange, and the Scout Fund into which the account is
being transferred.
If you wish to exchange part or all of your shares in any Fund
for shares of another Fund or Portfolio in the Scout Fund Group,
you should review the prospectus carefully. Any such exchange
will be based upon the respective net asset values of the shares
involved. An exchange between Funds involves the sale of an
asset. Unless the shareholder account is tax-deferred, this is a
taxable event.
HOW SHARE PRICE IS DETERMINED
The net asset value per share of each Fund (Portfolio) is
computed once daily, Monday through Friday, at the specific time
during the day that the Board of Directors of each Fund sets at
least annually, except on days on which changes in the value of a
Fund's portfolio securities will not materially affect the net
asset value, or days during which no security is tendered for
redemption and no order to purchase or sell such security is
received by the Fund, or customary holidays. For a list of the
holidays during which any of the Funds are not open for business,
see "How Share Price is Determined" in the "Statement of
Additional Information."
The per share calculation is made by subtracting from total
assets any liabilities and then dividing this net amount by the
total outstanding shares as of the date of the calculation.
Stock, Regional, Bond and WorldWide Funds
The price at which new shares of Scout Stock Fund, Scout Regional
Fund, Scout Bond Fund and Scout WorldWide Fund will be sold and at
which issued shares presented for redemption will be liquidated
is computed once daily at 4:00 P.M. (Eastern Time), except on
those days when these Funds are not open for business.
Money market securities held by Scout Stock Fund and Scout Bond Fund
which on the date of valuation have 60 days or less to maturity,
are valued on the basis of the amortized cost valuation technique
which involves valuing a security at its cost and thereafter
assuming a constant amortization to maturity of any discount or
premium, regardless of the impact of fluctuating interest rates
on the market value of the instrument.
For Scout Stock Fund, Scout Regional Fund and Scout WorldWide Fund,
each security listed on an Exchange is valued at its last sale
price on that Exchange on the date as of which assets are valued.
Where the security is listed on more than one Exchange, the Fund
will use the price of that Exchange which is generally considered
to be the principal Exchange on which the stock is traded.
Lacking sales, the security is valued at the mean between the
current closing bid and asked prices. An unlisted security for
which over-the-counter market quotations are readily available is
valued at the mean between the last current bid and asked prices.
When market quotations are not readily available, any security or
other asset is valued at its fair value as determined in good
faith by the Board of Directors.
For Scout Bond Fund, debt securities (other than short-term
obligations), including listed issues, are valued on the basis of
valuations furnished by a pricing service which utilizes both
dealer-supplied valuations and electronic data processing
techniques which take into account appropriate factors such as
institution-size trading in similar groups of securities, yield,
quality, coupon rate, maturity, type of issue, trading
characteristics and other market data, without exclusive reliance
upon exchange or over-the-counter prices, since such valuations
are believed to reflect more accurately the fair value of such
securities. Use of the pricing service has been approved by Scout
Bond Fund's Board of Directors.
Money Market and Tax-Free Money Market Funds
The price at which new shares of each Portfolio of Scout Money
Market Fund and Scout Tax-Free Money Market Fund will be sold and
at which issued shares presented for redemption will be
liquidated is computed once daily at 1:00 P.M. (Eastern Time),
except on those days when these Funds are not open for business.
Normally the price of each Portfolio of Scout Money Market Fund and
the price of Scout Tax-Free Money Market Fund will be $1.00 because
these Funds will adhere to a number of procedures designed, but
not guaranteed, to maintain a constant price of $1.00 per share.
Although unlikely, it still is possible that the value of the
shares you redeem may be more or less than your cost depending on
the market value of these Funds' securities at the time a
redemption becomes effective.
For the purpose of calculating each Fund's net asset value per
share, securities are valued by the "amortized cost" method of
valuation, which does not take into account unrealized gains or
losses. This involves valuing an instrument at its cost and
thereafter assuming a constant amortization to maturity of any
discount or premium regardless of the impact of fluctuating
interest rates on the market value of the instrument. While this
method provides certainty in valuation, it may result in periods
during which value, as determined by amortized cost, is higher or
lower than the price the Fund would receive if it sold the
instrument. During periods of declining interest rates, the daily
yield on shares of the Funds computed as described above may tend
to be higher than a like computation made by a fund with
identical investments utilizing a method of valuation based upon
market prices and estimates of market prices for its portfolio
instruments. Thus, if the use of amortized cost by the Funds
resulted in a lower aggregate value on a particular day, a
prospective investor in the Funds would be able to obtain a
somewhat higher yield than would result from investment in a fund
utilizing market values, and existing investors would receive
less investment income. The converse would apply in a period of
rising interest rates.
The use of amortized cost and the maintenance of each Fund's per
share net asset value at $1.00 is based on its election to
operate under the provisions of Rule 2a-7 under the Investment
Company Act of 1940. To assure compliance with adopted procedures
pursuant to Rule 2a-7 under the Investment Company Act of 1940
(the "1940 Act"), the Fund will only invest in U.S. dollar
denominated securities with remaining maturities of 397 days or
less, maintain the dollar weighted average maturity of the
securities in the Fund's portfolio at 90 days or less and limit
its investments to those instruments which the Directors of the
Fund determines present minimal credit risks and which are
eligible investments under the rule.
The Directors have established procedures designed to maintain
the Funds' price per share, as computed for the purpose of sales
and redemptions, at $1.00. These procedures include a review of
the Funds' holdings by the Directors at such intervals as they
deem appropriate to determine whether the Funds' net asset value
calculated by using available market quotations deviates from
$1.00 per share based on amortized cost. If any deviation exceeds
one-half of one percent, the Directors will promptly consider
what action, if any, will be initiated. In the event the
Directors determine that a deviation exists which may result in
material dilution or other unfair results to investors or
existing shareholders, they have agreed to take such corrective
action as they regard as necessary and appropriate, including the
sale of portfolio instruments prior to maturity to realize
capital gains or losses or to shorten average portfolio maturity;
withhold dividends; make a special capital distribution; redeem
shares in kind; or establish net asset value per share using
available market quotations.
There are various methods of valuing the assets and of paying
dividends and distributions from a money market fund. Each
Portfolio values its assets at amortized cost while also
monitoring the available market bid prices, or yield equivalents.
Since dividends from net investment income will be accrued daily
and paid monthly, the net asset value per share of each Portfolio
will ordinarily remain at $1.00, but the Portfolio's daily
dividends will vary in amount.
OFFICERS AND DIRECTORS
The officers of the Funds manage their day-to-day operations. The
Funds' manager and officers are subject to the supervision and
control of the Boards of Directors. A list of the officers and
directors of the Funds and a brief statement of their present
positions and principal occupations during the past five years is
set forth in the "Statement of Additional Information."
MANAGEMENT AND INVESTMENT COUNSEL
Jones & Babson, Inc. was founded in 1960. It organized Scout Stock,
Bond, Money Market and Tax-Free Money Market Funds in 1982, Scout
Regional Fund in 1986, and Scout WorldWide Fund in 1993 and acts
as their manager and principal underwriter. Pursuant to the
current Management Agreements, Jones & Babson, Inc. provides or
pays the cost of all management, supervisory and administrative
services required in the normal operation of the Funds. This
includes investment management and supervision; fees of the
custodians, independent public accountants and legal counsel;
remuneration of officers, directors and other personnel; rent;
shareholder services, including the maintenance of the
shareholder accounting system and transfer agency; and such other
items as are incidental to corporate administration. As
underwriter of the Funds, Jones & Babson also pays for
distribution of the Fund's shares.
As a part of the Management Agreement, Jones & Babson, Inc.
employs at its own expense UMB Bank, n.a. to assist in the
investment advisory function for each of the Funds.
UMB Bank, n.a. has an
experienced investment analysis and research staffs which
eliminates the need for Jones & Babson, Inc. and the Funds to
maintain extensive duplicate staffs, with the consequent increase
in the cost of investment advisory service. David B. Anderson has
been the portfolio manager of Scout Stock Fund since 1982 and
portfolio manager of Scout Regional Fund since its inception in
1992. He joined UMB Investment Advisors in 1979 and has 22 years
of investment management experience. William C. Anthony has been the
portfolio manager of Scout Tax-Free Money Market Fund since 1995.
He joined UMB in 1991 and has over 30 years of
investment management experience. James L. Moffett has been the
portfolio manager of Scout WorldWide Fund since its inception in
September, 1993. He is a Chartered Financial Analyst. He joined
UMB Bank Kansas (previously Commercial National Bank) in 1979 and
has more than 26 years experience in investment management.
William A. Faust has been the portfolio manager of both the Federal
and Prime Portfolios of Scout Money Market Fund since 1995. He joined UMB
in 1987 and has over 24 years investment management experience. George
W. Root has been the portfolio manager of Scout Bond Fund since
1982. He joined UMB Investment Advisors in 1978 and has 19 years
of investment management experience.
The cost of the services of UMB
Bank, n.a. (including custodian fees) are included in the fees of
Jones & Babson, Inc. The Management Agreements limit the
liability of the manager and its investment counsel, as well as
their officers, directors and personnel, to acts or omissions
involving willful malfeasance, bad faith, gross negligence, or
reckless disregard of their duties.
As compensation for all the foregoing services, Scout Stock Fund,
Scout Regional Fund, Scout Bond Fund and Scout WorldWide Fund pay
Jones & Babson, Inc. a fee at the annual rate of 85/100 of one
percent (.85%) of their total net assets, which is computed daily
and paid semimonthly, from which Jones & Babson, Inc. pays UMB
Bank, n.a. an investment advisory fee of 35/100 of one percent
(.35%). The total expenses of Scout Stock Fund for the fiscal year
ended June 30, 1994, amounted to .87% of the average net assets
of that Fund which included the following amounts paid to UMB
Bank, n.a.: $162,545 for custodian services, $392,907 for
advisory services and $17,745 (partial period) for portfolio
accounting services. The total expenses of Scout Bond Fund for the
fiscal year ended June 30, 1994, amounted to .87% of the average
net assets of that Fund which included the following amounts paid
to UMB Bank, n.a.: $128,155 for custodian services, $301,407 for
advisory services and $6,170 (partial period) for portfolio
accounting services. The total expenses of Scout Regional Fund for
the fiscal year ended December 31, 1993, amounted to .92% of the
average net assets of that Fund which included the following
amounts paid to UMB Bank, n.a.: $153,262 for custodian services
and $26,986 for advisory services. The total expenses of Scout
WorldWide Fund for the fiscal year ended December 31, 1993,
amounted to .85% of the average net assets of that Fund which
included the following amounts paid to UMB Bank, n.a.: $9,521 for
custodian services and $1,561 for advisory services.
Scout Money Market Fund and Scout Tax-Free Money Market Fund pay
Jones & Babson, Inc. a fee at the annual rate of 50/100 of one
percent (.50%) of their total net assets, which is computed daily
and paid semimonthly, from which Jones & Babson, Inc. pays UMB
Bank, n.a. an investment advisory fee of 1/10 of one
percent (.10%). The total expenses of the Federal Portfolio of
Scout Money Market Fund for the fiscal year ended June 30, 1994,
amounted to .50% of the average net assets of the Portfolio which
included the following amounts paid to UMB Bank, n.a.: $383,120
for custodian services, and $9,567 (partial period) for portfolio
accounting services. Advisory fees of $255,414 were paid to David
L. Babson & Co. under a former management agreement. The total
expenses of the Prime Portfolio of Scout
Money Market Fund for the fiscal year ended June 30, 1994,
amounted to .51% of the average net assets of the Portfolio which
included the following amounts paid to UMB Bank, n.a.: $301,254
for custodian services, and $9,007 (partial period) for portfolio
accounting services. Advisory fees of $200,836 were paid to David
L. Babson & Co. under a former managment agreement. The total
expenses of Scout Tax-Free Money Market
Fund for the fiscal year ended June 30, 1994, amounted to .53% of
the average net assets of the Portfolio which included the
following amounts paid to UMB Bank, n.a.: $132,306 for custodian
services, and $2,264 (partial period) for portfolio accounting
services. Advisory fees of $88,204 were paid to the previous investment
advisor, David L. Babson & Co.
The annual fees charged by Jones & Babson, Inc. is higher than
the fees of most other investment advisers whose charges cover
only investment advisory services with all remaining operational
expenses absorbed directly by the Fund. Yet, it compares
favorably with these other advisers when all expenses to Fund
shareholders are taken into account.
Not considered normal
operating expenses and therefore payable by the Funds, are taxes,
fees and other charges of governments and their agencies
including the cost of qualifying the Funds' shares for sale in
any jurisdiction, interest, brokerage costs, and all costs and
expenses including legal and accounting fees incurred in
anticipation of or arising out of litigation or administrative
proceedings to which the Funds, their officers or directors may
be subject or a party thereto.
Certain officers and directors of each Fund are also officers or
directors or both of other Scout Funds or Jones & Babson, Inc. Per
share expenses of any Portfolio or Fund may differ due to
differences in management or registration fees.
Jones & Babson, Inc. is a wholly-owned subsidiary of Business
Men's Assurance Company of America, which is considered to be a
controlling person under the Investment Company Act of 1940.
Assicurazioni Generali S.p.A., an insurance organization founded
in 1831 based in Trieste, Italy, is considered to be a
controlling person and is the ultimate parent of Business Men's
Assurance Company of America. Mediobanca is a 5% owner of
Generali.
The current Management Agreements between the Funds and Jones &
Babson, Inc., which include the Investment Counsel Agreements
between Jones & Babson, Inc. and UMB Bank, n.a. which have been approved
by the Funds' shareholders, will continue in effect until October
31, 1995, and will continue automatically for successive annual
periods ending each October 31 so long as such continuance is
specifically approved at least annually by the Boards of
Directors of the Funds or by a vote of the majority of the
outstanding voting securities of the Funds, and, provided also
that such continuance is approved by the vote of a majority of
the Directors who are not parties to the Agreements or interested
persons of any such party at a meeting held in person and called
specifically for the purpose of evaluating and voting on such
approval. All of the Agreements provide that either party may
terminate by giving the other 60 days written notice. The
Agreements terminate automatically if assigned by either party.
Jones & Babson, Inc. acts as the transfer agent for each Fund.
GENERAL INFORMATION AND HISTORY
On April 30, 1995 the name of the Fund group was changed from "UMB" to
"Scout". Scout Stock Fund and Scout Bond Fund, both of which were
incorporated in Maryland on July 29, 1982 as UMB Stock Fund, Inc. and
UMB Bond Fund, Inc., Scout Regional Fund, which was
incorporated in Maryland on July 11, 1986, as UMB Qualified
Dividend Fund, Inc., and changed its name to UMB Heartland Fund,
Inc. on July 30, 1991, and Scout WorldWide Fund which was
incorporated in Maryland on January 7, 1993 as UMB WorldWide Fund, Inc.,
each have a present
authorized capitalization of 10,000,000 shares of $1 par value
common stock. All shares of each Fund are of the same class with
like rights and privileges. Each full and fractional share, when
issued and outstanding, has: (1) equal voting rights with respect
to matters which affect the Fund, and (2) equal dividend,
distribution and redemption rights to the assets of the Fund.
Shares when issued are fully paid and non-assessable. The Funds
will not issue any senior securities. Shareholders do not have
pre-emptive or conversion rights. The Funds may issue additional
series of stock with the approval of the Fund's Board of
Directors.
Scout Money Market Fund, incorporated in Maryland on June 23, 1982
as UMB Money Market Fund, Inc., has a present authorized capitalization
of 1,500,000,000 shares of $.01 par value common stock. One-half of
the shares are presently reserved for issuance to shareholders invested
in the Federal Portfolio and one-half is reserved for the Prime
Portfolio shareholders. Each full and fractional share, when
issued and outstanding, has: (1) equal voting rights with respect
to matters which affect the Fund in general and with respect to
matters relating solely to the interests of the Portfolio for
which issued, and (2) equal dividend, distribution and redemption
rights to the assets of the Portfolio for which issued and to
general assets, if any, of the Fund which are not specifically
allocated to a particular Portfolio. Shares when issued are fully
paid and non-assessable. Except for the priority of each share in
the assets of its Portfolio, the Fund will not issue any class of
securities senior to any other class. Shareholders do not have
pre-emptive or conversion rights. The Fund may issue additional
series of stock with the approval of the Fund's Board of
Directors.
Scout Tax-Free Money Market Fund, incorporated in Maryland on July
29, 1982 as UMB Tax-Free Money Market Fund, Inc., has a present
authorized capitalization of
1,000,000,000 shares of $.01 par value common stock. All shares
are of the same class with like rights and privileges. Each full
and fractional share, when issued and outstanding, has: (1) equal
voting rights with respect to matters which affect the Fund, and
(2) equal dividend, distribution and redemption rights to the
assets of the Fund. Shares when issued are fully paid and
non-assessable. The Fund will not issue any senior securities.
Shareholders do not have pre-emptive or conversion rights. The
Fund may issue additional series of stock with the approval of
the Fund's Board of Directors.
Non-cumulative voting - All of the Funds' shares have
non-cumulative voting rights, which means that the holders of
more than 50% of the shares voting for the election of directors
can elect 100% of the directors, if they choose to do so, and in
such event, the holders of the remaining less than 50% of the
shares voting will not be able to elect any directors.
The Maryland Statutes permit registered investment companies,
such as the Funds, to operate without an annual meeting of
shareholders under specified circumstances if an annual meeting
is not required by the Investment Company Act of 1940. There are
procedures whereby the shareholders may remove directors. These
procedures are described in the "Statement of Additional
Information" under the caption "Officers and Directors." The
Funds have adopted the appropriate provisions in their By-Laws
and will not hold annual meetings of shareholders for the
following purposes unless required to do so: (1) election of
directors; (2) approval of any investment advisery agreement; (3)
ratification of the selection of independent public accountants;
and (4) approval of a distribution plan. As a result, the Fund
does not intend to hold annual meetings.
Federal Banking Laws - The Glass-Steagall Act is a federal law
that prohibits national banks from sponsoring, distributing or
controlling a registered open-end investment company. It is
possible that certain activities of UMB Bank, n.a. relating to
the Funds may be claimed to be comparable to the matters covered
by such provisions. It is not expected that any conclusions
regarding such activities of UMB Bank, n.a. would have any
material effect on the assets of the Funds or their shareholders,
because the Funds' management and distribution are under the
control of Jones & Babson, Inc., the Funds' investment adviser
and distributor, which is not subject to the Glass-Steagall Act.
Although it is not anticipated that decisions under the
Glass-Steagall Act adverse to UMB Bank, n.a. would have any
material effect on the conduct of the Fund's operations, if any
unanticipated changes affecting the Fund's operations were deemed
appropriate, the Board of Directors would promptly consider
suitable adjustments.
This prospectus omits certain of the information contained in the
registration statement filed with the Securities and Exchange
Commission, Washington, D.C. These items may be inspected at the
offices of the Commission or obtained from the Commission upon
payment of the fee prescribed.
In the opinion of the staff of the Securities and Exchange
Commission, the use of this combined Prospectus may possibly
subject all Funds to a certain amount of liability for any losses
arising out of any statement or omission in this prospectus
regarding a particular Fund. In the opinion of the Funds'
management, however, the risk of such liability is not materially
increased by the use of a combined Prospectus.
DIVIDENDS, DISTRIBUTIONS AND THEIR TAXATION
Scout Stock Fund, Inc., Scout Regional Fund, Inc., and Scout WorldWide
Fund, Inc. will pay substantially all of their net income
semiannually, usually in June and December. It is contemplated
that substantially all of any net capital gains realized during a
fiscal year will be distributed with the fiscal year-end
dividend, with any remaining balance paid in December. Dividends
and capital gains distributions will be reinvested automatically
in additional shares at the net asset value per share next
computed and effective at the close of business on the day after
the record date, unless the shareholder has elected on the
original application or by written instructions filed with the
Fund, to have them paid in cash.
In the case of Scout Tax-Free Money Market Fund, Inc. and each
Portfolio of Scout Money Market Fund, Inc., at the close of each
business day, dividends consisting of substantially all of each
Portfolio's net investment income are declared payable to
shareholders of record at the close of that day, and credited to
their accounts. All daily dividends declared during a given month
will be distributed on the last day of the month.
In the case of Scout Bond Fund, at the close of each business day,
dividends consisting of substantially all of the Fund's net
investment income are declared payable to shareholders of record
at the close of the previous business day, and credited to their
accounts. All daily dividends declared during a given month will
be distributed on the last day of the month. It is contemplated
that substantially all of any net capital gains realized during a
fiscal year will be distributed with the fiscal year-end
dividend, with any remaining balance paid in December. Dividends
and capital gains distributions will be reinvested automatically
in additional shares at the net asset value per share next
computed and effective at the close of business on the day after
the record date, unless the shareholder has elected on the
original application or by written instructions filed with the
Fund, to have them paid in cash.
Each Fund and each Portfolio of Scout Money Market Fund has
qualified and intends to continue to qualify each year as "a
regulated investment company" under the Internal Revenue Code so
that each Fund (or Portfolio) will not be subject to federal
income tax to the extent it distributes its income to its
shareholders. Dividends, either in cash or reinvested in shares,
paid by the Funds from net investment income will be taxable to
shareholders as ordinary income. In the case of Scout Stock Fund
and Scout Regional Fund, dividends paid by such Funds will
generally qualify in part for the 70% dividends-received
deduction for corporations, but the portion of the dividends so
qualified depends on the aggregate taxable qualifying dividend
income received by such Fund from domestic (U.S.) sources. Each
Fund will send to shareholders a statement each year advising the
amount and treatment of the dividend income.
Dividends and capital gains distributions, if any, are
automatically reinvested in additional shares at net asset value,
unless the shareholder has elected in writing to receive cash.
The method of payment elected remains in effect until the Fund is
notified in writing to the contrary. If at the time of a complete
redemption and closing of a shareholder account, there is net
undistributed income to the credit of the shareholder, it will be
paid by separate check on the next dividend distribution date. In
the case of a partial redemption, any net undistributed credit
will be distributed on the next dividend date according to the
shareholder's instructions on file with the Fund.
Whether paid in cash or additional shares of a Fund, and
regardless of the length of time Fund shares have been owned by
the shareholder, distributions from long-term capital gains are
taxable to shareholders as such, but are not eligible for the
dividends-received deduction for corporations. Shareholders are
notified annually by each Fund as to federal tax status of
dividends and distributions paid by the Fund. In the case of Scout
Tax-Free Money Market Fund, shareholders who have not been in
such Fund for a full fiscal year may have designated as
tax-exempt a percentage of income which is not equivalent to the
actual amount applicable to the period for which they have held
the shares. Such dividends and distributions may also be subject
to state and local taxes.
Exchange and redemption of Fund shares are taxable events for
federal income tax purposes. Shareholders may also be subject to
state and municipal taxes on such exchanges and redemptions. You
should consult your tax adviser with respect to the tax status of
distributions from the Fund in your state and locality.
The Funds intend to declare and pay dividends and capital gains
distributions so as to avoid imposition of the federal excise
tax. To do so, each Fund (and in the case of Scout Money Market
Fund, each Portfolio) expects to distribute during the calendar
year an amount equal to: (1) 98% of its calendar year ordinary
income; (2) 98% of its capital gains net income (the excess of
short- and long-term capital gain over short- and long-term
capital loss) for the one-year period ending each October 31; and
(3) 100% of any undistributed ordinary or capital gain net income
from the prior calendar year. Dividends declared in December of
any year to shareholders of record on any date in December will
be deemed to have been paid by the Fund (or Portfolio) and
received by shareholders on the record date provided that the
dividends are paid before February 1 of the following year.
To comply with IRS regulations, the Funds are required by federal
law to withhold 31% of reportable payments (which may include
dividends, capital gains distributions, and redemptions) paid to
shareholders who have not complied with IRS regulations. In order
to avoid this withholding requirement, shareholders must certify
on their Application or on a separate form supplied by the Fund,
that their Social Security or Taxpayer Identification Number
provided is correct and that they are not currently subject to
backup withholding, or that they are exempt from backup
withholding.
Exempt-Interest Dividends - Scout Tax-Free Money Market Fund
intends to invest a sufficient portion of its assets in municipal
securities so that it will qualify to pay "exempt-interest
dividends" (as defined in the Internal Revenue Code) to its
shareholders. The dividends payable by Scout Tax-Free Money Market
Fund from net tax-exempt interest from municipal securities will
qualify as exempt-interest dividends if, at the close of each
quarter of its taxable year, at least 50% of the value of the
total assets of such Fund consists of municipal securities.
Exempt-interest dividends distributed to shareholders are not
includable in the shareholder's gross income for federal income
tax purposes. Any insurance proceeds which represent maturing
interest on defaulted municipal securities held by Scout Tax-Free
Money Market Fund will be excludable from federal gross income.
Distributions of net investment income received by Scout Tax-Free
Money Market Fund from investments in debt securities other than
municipal securities, and any net realized short-term capital
gains distributed by Scout Tax-Free Money Market Fund, will be
taxable to its shareholders as ordinary income and will not be
eligible for the dividends-received deduction for corporations.
Further, any distribution of net realized capital gains will
generally be subject to taxation at the state and local level.
The Tax Reform Act of 1986 imposes certain additional
restrictions on the use of tax-exempt bond financing for
nongovernmental business activities such as industrial
development bonds. Accordingly, interest on certain types of
non-essential, or private activity bonds, may no longer be exempt
from federal income tax. Interest on other types of non-essential
or private activity bonds while still tax-exempt, will be treated
as a tax preference item for corporate and individual investors
in determining their liability in tax years beginning after 1986.
Pursuant to the Social Security Act Amendments of 1993, up to 85%
of a social security recipient's benefits may be included in
federal taxable income (including income from tax-exempt sources
such as tax-exempt bonds in Scout Tax-Free Money Market Fund) plus
50% of their benefits exceeding certain established amounts.
The federal income tax status of all distributions will be
reported to shareholders each January as a part of the annual
statement of shareholder transactions. Shareholders not subject
to tax on their income will not be required to pay tax on amounts
distributed to them.
THE TAX DISCUSSION SET FORTH ABOVE IS INCLUDED HEREIN FOR GENERAL
INFORMATION ONLY. PROSPECTIVE INVESTORS SHOULD CONSULT THEIR OWN
TAX ADVISERS WITH RESPECT TO THE TAX CONSEQUENCES TO THEM OF
INVESTMENT IN THE FUNDS.
SHAREHOLDER SERVICES
The Funds and their manager offer shareholders a broad variety of
services described throughout this prospectus. In addition, the
following services are available.
Prototype Retirement Plans - The UMB Bank, n.a. has drafted
several IRS-approved-as-to-form prototype retirement plans to
assist individuals, sole proprietors, partnerships and
corporations in meeting their tax qualified retirement plan
needs.
Individual Retirement Account (IRA) - The Bank also makes
available IRA accounts for individuals.For further information
about these services, please contact UMB Bank, n.a.
SHAREHOLDER INQUIRIES
Telephone inquiries may be made toll free to the Funds,
1-800-996-2862.
Shareholders may address written inquiries to the Funds at:
The Scout Fund Group
P. O. Box 410498
Kansas City, MO 64141-0498
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000803019
<NAME> SCOUT REGIONAL FUND, INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 0
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 9.49
<PER-SHARE-NII> .18
<PER-SHARE-GAIN-APPREC> (.12)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .35
<RETURNS-OF-CAPITAL> 1
<PER-SHARE-NAV-END> 9.20
<EXPENSE-RATIO> .91
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000706127
<NAME> SCOUT BOND FUND, INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1994
<PERIOD-END> JUN-30-1994
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 0
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 11.53
<PER-SHARE-NII> .62
<PER-SHARE-GAIN-APPREC> (.74)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .66
<RETURNS-OF-CAPITAL> (1)
<PER-SHARE-NAV-END> 10.75
<EXPENSE-RATIO> .87
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000704773
<NAME> SCOUT MONEY MARKET FUND, INC.
<SERIES>
<NUMBER> 1
<NAME> FEDERAL PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1994
<PERIOD-END> JUN-30-1994
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 0
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .03
<RETURNS-OF-CAPITAL> 3
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000704773
<NAME> SCOUT MONEY MARKET FUND, INC.
<SERIES>
<NUMBER> 2
<NAME> PRIME PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1994
<PERIOD-END> JUN-30-1994
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 0
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .03
<RETURNS-OF-CAPITAL> 3
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .51
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000706126
<NAME> SCOUT TAX-FREE MONEY MARKET FUND, INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1994
<PERIOD-END> JUN-30-1994
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 0
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .02
<RETURNS-OF-CAPITAL> 2
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .53
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000897216
<NAME> SCOUT WORLDWIDE FUND, INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 0
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.68
<PER-SHARE-NII> .17
<PER-SHARE-GAIN-APPREC> .23
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .24
<RETURNS-OF-CAPITAL> 4
<PER-SHARE-NAV-END> 10.84
<EXPENSE-RATIO> .85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
