TO THE SHAREHOLDERS
During the quarter ended September 30, 1995, Scout Money Market Fund's
Federal portfolio returned an annualized yield of 5.40% and the Prime
portfolio earned 5.44%. These figures increased to 5.53% and 5.58%,
respectively, for those share-holders who reinvested their dividends.
The tone for the quarter was set early by the Federal Reserve when, on
July 6, it lowered the Federal Funds rate from 6.00% to 5.75%. This decrease
effectively lowered the ceiling for short-term rates and by the next day
commercial paper rates had declined from about 6.00% to 5.75% and agency
discount notes had declined from 5.85% to 5.60%. As the quarter progressed
money market rates traded within a five to ten basis point band subject to
the market's latest thoughts on whether the Fed would or would not continue
to ease. In fact, the Fed took no further action during third quarter and by
September 30 rates were essentially unchanged from their July 7 levels. What
had changed was the new message from the Federal Reserve that their tightening
moves were over and that the direction of future action would be toward
further easing.
During the second fiscal quarter the debate over the Fed's next easing move
continues. If economic data confirms that further weakness in the economy is
yet to come the Fed will undoubtedly ease. One other powerful factor for
lowering rates would be Congressional action on a credible deficit reduction
package. This seems more and more likely. The new quarter will be interesting
but may prove to be quite volatile depending on what actions the markets sees
from Congress and the Fed.
With this in mind, Scout Money Market Fund's Federal and Prime portfolios
will adhere to their long-standing policy of focusing on quality and
liquidity, without the use of derivatives. This policy has and will continue
to serve our shareholders well during this difficult market environment.
We appreciate your continued interest in Scout Money Market Fund and the
entire family of Scout Funds.
Sincerely,
Larry D. Armel
President
Shares of the Scout Funds are not deposits or obligations of, nor guaranteed
by, UMB Bank, n.a. or any other banking institution, nor are they federally
insured by the Federal Deposit Insurance Corporation or any other federal
agency. These shares involve investment risks, including the possible loss of
the principal amount invested.
FINANCIAL STATEMENTS
Statement of Net Assets
September 30, 1995
Principal Market
Amount Description Value
PRIME PORTFOLIO
BANKERS' ACCEPTANCE _ 0.68%
$ 2,000,000 Republic National Bank-New York, 5.97%,
due October 23, 1995 $ 1,992,372
SHORT-TERM CORPORATE NOTES _ 87.77%
3,000,000 Air Products & Chemicals, Incorporated,
5.71%, due October 19, 1995 2,990,959
2,500,000 Air Products & Chemicals, Incorporated,
5.69%, due November 17, 1995 2,481,033
5,000,000 American Greetings Corporation, 5.74%,
due October 4, 1995 4,996,811
4,000,000 Aon Corporation, 5.73%, due November 2, 1995 3,978,990
1,000,000 Aon Corporation, 5.78%, due November 10, 1995 993,417
5,000,000 Aon Corporation, 5.67%, due November 21, 1995 4,959,050
2,500,000 Aon Corporation, 5.80%, due November 21, 1995 2,479,056
7,500,000 Bell Atlantic Financial Services, Incorporated,
5.70%, due October 19, 1995 7,477,438
12,500,000 BellSouth Telecommunications, 5.70%,
due October 4, 1995 12,492,083
10,000,000 Chevron Corporation, 5.70%,
due October 12, 1995 9,981,000
4,000,000 Coca-Cola Company, 6.10%, due October 10, 1995 3,993,222
2,500,000 Clorox Company, 5.63%, due December 11, 1995 2,471,850
7,500,000 duPont (E.I.) deNemours & Company, 5.67%,
due November 17, 1995 7,443,300
12,500,000 Engelhard Corporation, 5.73%,
due October 17, 1995 12,466,177
2,500,000 Heinz (H.J.) Company, 5.71%, due October 19, 1995 2,492,466
5,000,000 Heinz (H.J.) Company, 5.70%, due October 27, 1995 4,978,625
1,000,000 Hewlett Packard Company, 5.64%,
due October 10, 1995 998,433
2,500,000 Hewlett Packard Company, 5.55%,
due January 2, 1996 2,463,771
5,000,000 Hewlett Packard Company, 5.62%,
due January 2, 1996 4,926,628
5,000,000 IBM Corporation, 5.73%, due October 3, 1995 4,997,613
5,000,000 IBM Corporation, 5.74%, due October 6, 1995 4,995,217
3,150,000 Kellogg Company, 5.69%, due October 17, 1995 3,141,536
2,543,000 Kellogg Company, 5.69%, due October 19, 1995 2,535,363
1,000,000 Laclede Gas & Company, 5.75%,
due October 23, 1995 996,326
7,500,000 Lilly (Eli) & Company, 5.71%,
due October 16, 1995 7,480,967
2,500,000 Marsh & McClennan Companies, Incorporated,
5.52%, due March 14, 1996 2,436,366
3,500,000 Penney (J.C.) & Company, 5.72%,
due October 12, 1995 3,493,327
10,000,000 PepsiCo, Incorporated, 5.68%,
due November 3, 1995 9,946,356
4,000,000 PepsiCo, Incorporated, 5.63%, due May 10, 1996 3,860,501
10,000,000 Pfizer, Incorporated, 5.68%,
due October 27, 1995 9,957,400
5,000,000 Philip Morris Companies, 5.72%,
due October 4, 1995 4,996,822
7,000,000 Philip Morris Companies, 5.71%,
due October 19, 1995 6,978,905
2,500,000 Progress Capital Holdings, Incorporated,
5.75%, due October 3, 1995 2,498,802
2,000,000 Progress Capital Holdings, Incorporated,
5.75%, due October 13, 1995 1,995,847
6,000,000 Progress Capital Holdings, Incorporaterd,
5.73%, due November 3, 1995 5,967,530
7,500,000 Snap-On Tools Corporation, 5.75%,
due October 3, 1995 7,496,406
5,000,000 Snap-On Tools Corporation, 5.71%,
due October 12, 1995 4,990,483
1,000,000 Snap-On Tools Corporation, 5.72%,
due October 12, 1995 998,093
10,000,000 South Carolina Electric & Gas Company,
5.72%, due October 25, 1995 9,960,278
4,905,000 Southwestern Bell Telephone Company,
5.67%, due November 2, 1995 4,879,506
2,500,000 Southwestern Bell Capital Corporation,
5.64%, due November 28, 1995 2,476,892
10,000,000 Texaco, Incorporated, 5.72%, due October 10, 1995 9,984,111
2,500,000 Texaco, Incorporated, 5.71%, due October 17, 1995 2,493,259
2,500,000 U.S. West Communications, Incorporated,
5.75%, due October 13, 1995 2,494,809
5,000,000 U.S. West Communications, Incorporated,
5.72%, due October 24, 1995 4,980,933
5,000,000 U.S. West Communications, Incorporated,
5.67%, due November 8, 1995 4,969,288
10,000,000 Wal-Mart Stores, Incorporated, 5.70%,
due October 13, 1995 9,979,417
6,000,000 Weyerhauser Company, 5.71%, due October 23, 1995 5,978,112
7,500,000 Weyerhauser Company, 5.70%, due October 25, 1995 7,470,313
5,000,000 Xerox Credit Corporation, 5.72%,
due October 6, 1995 4,995,233
256,598,000 255,490,320
GOVERNMENT SPONSORED ENTERPRISES _ 5.31%
500,000 Federal Farm Credit Banks Discount Notes, 5.57%,
due October 16, 1995 498,762
265,000 Federal Farm Credit Banks Discount Notes, 5.52%,
due December 27, 1995 261,424
1,050,000 Federal Home Loan Banks Discount Notes, 5.60%,
due October 13, 1995 1,047,877
2,000,000 Federal Home Loan Banks Discount Notes, 6.28%,
due February 2, 1996 1,956,389
2,000,000 Federal Home Loan Banks Discount Notes, 6.30%,
due February 2, 1996 1,956,250
2,000,000 Federal Home Loan Banks Discount Notes, 5.865%,
due September 26, 1996 2,000,000
2,500,000 Federal National Mortgage Association Discount
Notes, 5.59%, due October 17, 1995 2,493,401
260,000 Federal National Mortgage Association Discount
Notes, 5.58%, due December 7, 1995 257,259
5,000,000 Federal National Mortgage Association Discount
Notes, 5.66%, due March 15, 1996 5,000,000
15,575,000 15,471,362
REPURCHASE AGREEMENT _ 5.67%
16,500,000 Harris Bank, 6.25%, due October 2, 1995
(Collateralized by U.S. Treasury Notes,
6.50%, due May 15, 1997) 16,500,000
TOTAL INVESTMENTS _ 99.43% $ 289,454,054
Other assets less liabilities _ 0.57% 1,650,449
TOTAL NET ASSETS _ 100.00%
(equivalent to $1.00 per share; 750,000,000 shares of
$0.01 par value capital shares authorized;
291,134,183 shares outstanding) $ 291,104,503
Valuation of securities is on the basis of amortized cost, which approximates
market value.
FINANCIAL STATEMENTS
Statement of Net Assets
September 30, 1995
Principal Market
Amount Description Value
FEDERAL PORTFOLIO
GOVERNMENT SPONSORED ENTERPRISES _ 94.42%
$ 1,495,000 Federal Agricultural Mortgage Corporation
Discount Notes, 5.65%, due October 2, 1995 $ 1,494,531
7,500,000 Federal Agricultural Mortgage Corporation
Discount Notes, 5.65%, due October 10, 1995 7,488,229
10,340,000 Federal Agricultural Mortgage Corporation
Discount Notes, 5.66%, due October 16, 1995 10,313,989
3,250,000 Federal Agricultural Mortgage Corporation
Discount Notes, 5.57%, due November 6, 1995 3,231,395
5,200,000 Federal Farm Credit Banks Discount Notes,
5.63%, due October 12, 1995 5,190,241
10,000,000 Federal Farm Credit Banks Discount Notes,
5.61%, due October 19, 1995 9,970,392
5,100,000 Federal Farm Credit Banks Discount Notes,
5.60%, due November 1, 1995 5,074,613
10,000,000 Federal Home Loan Banks Discount Notes,
5.60%, due October 23, 1995 9,964,222
700,000 Federal Home Loan Banks Discount Notes,
6.95%, due December 22, 1995 688,783
5,000,000 Federal Home Loan Banks Discount Notes,
6.28%, due February 2, 1996 4,890,625
1,000,000 Federal Home Loan Banks Discount Notes,
5.865%, due September 26, 1996 1,000,000
9,800,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.58%, due October 2, 1995 9,796,962
1,000,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.65%, due October 2, 1995 999,686
1,000,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.58%, due October 6, 1995 999,070
10,000,000 Federal Home Loan Mortgage Corporation Discount
Notes, 5.62%, due October 6, 1995 9,990,633
1,250,000 Federal Home Loan Mortgage Corporation Discount
Notes, 5.66%, due October 10, 1995 1,248,035
2,500,000 Federal Home Loan Mortgage Corporation Discount
Notes, 5.54%, due October 11, 1995 2,495,768
14,660,000 Federal Home Loan Mortgage Corporation Discount
Notes, 5.66%, due October 16, 1995 14,623,122
2,500,000 Federal Home Loan Mortgage Corporation Discount
Notes, 5.57%, due November 1, 1995 2,487,622
1,000,000 Federal Home Loan Mortgage Corporation Discount
Notes, 5.65%, due November 1, 1995 994,978
4,730,000 Federal Home Loan Mortgage Corporation Discount
Notes, 5.57%, due November 6, 1995 4,702,922
3,500,000 Federal Home Loan Mortgage Corporation Discount
Notes, 5.60%, due December 4, 1995 3,464,611
3,000,000 Federal Home Loan Mortgage Corporation Discount
Notes, 5.50%, due December 22, 1995 2,961,958
1,000,000 Federal Home Loan Mortgage Corporation Discount
Notes, 5.58%, due January 2, 1996 985,430
5,000,000 Federal Home Loan Mortgage Corporation Discount
Notes, 7.25%, due April 18, 1997 5,003,342
10,000,000 Federal National Mortgage Association Discount
Notes, 5.66%, due October 6, 1995 9,990,567
250,000 Federal National Mortgage Association Discount
Notes, 5.61%, due October 10, 1995 249,610
11,000,000 Federal National Mortgage Association Discount
Notes, 5.66%, due October 10, 1995 10,982,706
11,355,000 Federal National Mortgage Association Discount
Notes, 5.66%, due October 11, 1995 11,335,362
2,500,000 Federal National Mortgage Association Discount
Notes, 5.59%, due October 17, 1995 2,493,401
1,000,000 Federal National Mortgage Association Discount
Notes, 5.55%, due October 25, 1995 996,146
14,000,000 Federal National Mortgage Association Discount
Notes, 5.58%, due October 25, 1995 13,945,750
2,500,000 Federal National Mortgage Association Discount
Notes, 5.57%, due November 3, 1995 2,486,849
5,000,000 Federal National Mortgage Association Discount
Notes, 5.60%, due November 3, 1995 4,973,556
9,250,000 Federal National Mortgage Association Discount
Notes, 5.60%, due November 21, 1995 9,175,178
2,500,000 Federal National Mortgage Association Discount
Notes, 5.57%, due November 22, 1995 2,479,499
2,500,000 Federal National Mortgage Association Discount
Notes, 5.60%, due December 7, 1995 2,473,556
3,500,000 Federal National Mortgage Association Discount
Notes, 5.66%, due March 15, 1996 3,500,000
5,815,000 Federal National Mortgage Association Discount
Notes, 5.56%, due March 25, 1996 5,656,037
7,000,000 Tennessee Valley Authority Discount Notes,
5.65%, due October 3, 1995 6,996,704
208,695,000 207,796,080
REPURCHASE AGREEMENT _ 5.77%
12,700,000 Harris Bank, 6.25%, due October 2, 1995
(Collateralized by U.S. Treasury Notes,
6.50%, due May 15, 1997) 12,700,000
TOTAL INVESTMENTS _ 100.19% $ 220,496,080
Other assets less liabilities _ (0.19%) (423,496)
TOTAL NET ASSETS _ 100.00%
(equivalent to $1.00 per share; 750,000,000 shares
of $0.01 par value capital shares authorized;
220,120,709 shares outstanding) $ 220,072,584
Valuation of securities is on the basis of amortized cost, which approximates
market value.
This report has been prepared for the information of the Shareholders of
Scout Money Market Fund, Inc., and is not to be construed as an offering of
the shares of the Fund. Shares of this Fund and of the other Scout Funds are
offered only by the Prospectus, a copy of which may be obtained from Jones &
Babson, Inc.
