Scout Money Market Fund
Annual Report
June 30, 1995
TO THE SHAREHOLDERS
For the fiscal year ended June 30, 1995, Scout Money Market Fund's Federal
Portfolio returned an annual yield of 4.90% and the Prime Portfolio earned
4.96%. These figures increased to 5.01% and 5.07%, respectively, for those
shareholders who reinvested their dividends.
During the year, Federal Reserve tightening actions dominated the markets and
significantly increased short-term interest rates. Between February, 1994 and
February, 1995 the Fed increased the federal funds rate by an astonishing 300
basis points. This dramatic increase in the cost of short-term money was
clearly beneficial to Fund shareholders who realized their best annual return
since 1991.
By late March it was evident that the economy was slowing and as the fiscal
year came to a close, the Federal Reserve's aggressive actions began to take
their toll on the economy. As evidence continued to mount, the market began
to anticipate that the end of the tightening was at hand, and barring some
unexpected positive economic news, the next move would be to lower rates.
On July 6, 1995, the fed funds rate was reduced by 25 basis points.
With potential market turbulence in mind, Scout Money Market Fund 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 difficult market
environments.
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.
<PAGE>
FINANCIAL STATEMENTS
Statement of Net Assets
June 30, 1995
Principal Market
Amount Description Cost Value
PRIME PORTFOLIO
BANKERS' ACCEPTANCES - 4.84%
$ 2,000,000 First National Bank-Maryland,
6.07%, due September 11, 1995 $ 1,975,720 $ 1,975,720
2,000,000 Republic National Bank-New York,
6.00%, due July 14, 1995 1,995,667 1,995,667
2,000,000 Republic National Bank-New York,
6.14%, due August 11, 1995 1,986,014 1,986,014
4,000,000 Republic National Bank-New York,
6.15%, due August 17, 1995 3,967,883 3,967,883
2,000,000 Republic National Bank-New York,
5.97%, due October 23, 1995 1,962,190 1,962,190
12,000,000 11,887,474 11,887,474
SHORT-TERM CORPORATE NOTES - 74.83%
5,000,000 Abbott Laboratories,
5.88%, due July 10, 1995 4,992,650 4,992,650
5,000,000 AIG Funding, Incorporated,
5.95%, due July 7, 1995 4,995,042 4,995,042
3,000,000 Air Products & Chemicals, Incorporated,
5.90%, due August 24, 1995 2,973,450 2,973,450
3,500,000 American Greetings Corporation,
5.96%, due July 26, 1995 3,485,514 3,485,514
9,700,000 American Telephone & Telegraph Company,
5.82%, due July 14, 1995 9,679,614 9,679,614
2,000,000 American Telephone & Telegraph Company,
6.05%, due July 18, 1995 1,994,286 1,994,286
4,125,000 Amoco Corporation,
5.90%, due July 5, 1995 4,122,296 4,122,296
5,000,000 Anheuser-Busch Companies,
Incorporated,
5.90%, due July 12, 1995 4,990,986 4,990,986
3,000,000 Anheuser-Busch Companies,
Incorporated,
5.92%, due July 17, 1995 2,992,107 2,992,107
4,000,000 AON Corporation,
5.73%, due November 2, 1995 3,921,053 3,921,053
1,000,000 AON Corporation,
5.78%, due November 10, 1995 978,807 978,807
3,000,000 Coca-Cola Company,
5.97%, due July 12, 1995 2,994,527 2,994,527
3,000,000 Coca-Cola Company,
5.90%, due July 28, 1995 2,986,725 2,986,725
4,000,000 Coca-Cola Financial Corporation,
6.10%, due October 10, 1995 3,931,544 3,931,544
5,000,000 Chevron Oil Financial Company,
5.91%, due July 26, 1995 4,979,479 4,979,479
3,000,000 Chevron Oil Financial Company,
5.90%, due July 28, 1995 2,986,725 2,986,725
3,000,000 Chevron Oil Financial Company,
5.94%, due August 1, 1995 2,984,655 2,984,655
6,650,000 Deere & Company,
5.94%, due July 19, 1995 6,630,249 6,630,249
4,500,000 Deere & Company,
5.94%, due August 1, 1995 4,476,982 4,476,982
5,000,000 Duke Power Company,
5.93%, due July 12, 1995 4,990,940 4,990,940
10,500,000 Englehard Corporation,
5.96%, due July 19, 1995 10,468,710 10,468,710
1,000,000 Hershey Foods Corporation,
5.93%, due July 10, 1995 998,518 998,518
5,000,000 Hershey Foods Corporation,
5.94%, due July 21, 1995 4,983,500 4,983,500
5,000,000 Kimberly-Clark Corporation,
5.86%, due August 14, 1995 4,964,189 4,964,189
5,700,000 Kimberly-Clark Corporation,
5.85%, due August 18, 1995 5,655,540 5,655,540
5,000,000 KN Energy Incorporated,
6.00%, due July 26, 1995 4,979,167 4,979,167
5,000,000 KN Energy Incorporated,
6.05%, due July 28, 1995 4,977,313 4,977,313
1,000,000 Lilly (Eli) & Company,
5.87%, due August 7, 1995 993,967 993,967
900,000 Lilly (Eli) & Company,
5.90%, due August 7, 1995 894,542 894,542
2,500,000 Marsh McLennan Companies,
Incorporated,
5.52%, due March 14, 1996 2,401,483 2,401,483
5,000,000 Nalco Chemical Company,
5.95%, due July 14, 1995 4,989,257 4,989,257
5,000,000 Nalco Chemical Company,
5.98%, due August 1, 1995 4,974,253 4,974,253
1,470,000 Penney (J.C.) Funding Corporation,
5.95%, due July 19, 1995 1,465,627 1,465,627
1,500,000 Penney (J.C.) Funding Corporation,
5.93%, due July 24, 1995 1,494,308 1,494,308
3,500,000 PepsiCo, Incorporated,
5.93%, due July 24, 1995 3,486,740 3,486,740
7,000,000 Proctor & Gamble Company,
5.90%, due July 17, 1995 6,981,644 6,981,644
5,000,000 Progress Capital Holdings,
Incorporated,
6.15%, due July 3, 1995 4,998,292 4,998,292
5,000,000 Progress Capital Holdings,
Incorporated,
5.95%, due July 10, 1995 4,992,563 4,992,563
4,110,000 Snap-On Tools Corporation,
5.93%, due July 6, 1995 4,106,621 4,106,621
5,000,000 Snap-On Tools Corporation,
5.90%, due August 3, 1995 4,972,958 4,972,958
2,500,000 South Carolina Electric &
Gas Company,
5.94%, due August 2, 1995 2,486,800 2,486,800
6,425,000 Southwestern Bell Telephone Company,
5.85%, due September 15, 1995 6,345,651 6,345,651
3,000,000 Xerox Credit Corp.,
5.90%, due July 12, 1995 2,994,592 2,994,592
6,000,000 Xerox Credit Corp.,
5.95%, due July 26, 1995 5,975,208 5,975,208
184,580,000 183,669,074 183,669,074
GOVERNMENT SPONSORED ENTERPRISES - 17.14%
3,000,000 Federal Farm Credit Banks
Discount Notes,
5.88%, due July 5, 1995 2,998,040 2,998,040
2,500,000 Federal Farm Credit Banks
Discount Notes,
5.88%, due July 6, 1995 2,497,958 2,497,958
2,000,000 Federal Home Loan Banks
Discount Notes,
6.50%, due July 7, 1995 1,997,833 1,997,833
450,000 Federal Home Loan Banks
Discount Notes,
5.90%, due July 19, 1995 448,673 448,673
1,000,000 Federal Home Loan Banks
Discount Notes,
6.10%, due July 24, 1995 996,103 996,103
2,310,000 Federal Home Loan Banks
Discount Notes,
6.37%, due September 28, 1995 2,273,622 2,273,622
2,000,000 Federal Home Loan Banks
Discount Notes,
6.28%, due February 2, 1996 1,924,640 1,924,640
2,000,000 Federal Home Loan Banks
Discount Notes,
6.30%, due February 2, 1996 1,924,400 1,924,400
6,600,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.88%, due July 14, 1995 6,585,986 6,585,986
5,500,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.77%, due September 20, 1995 5,428,596 5,428,596
1,000,000 Federal National Mortgage
Association Discount Notes,
6.32%, due July 10, 1995 998,420 998,420
3,000,000 Federal National Mortgage
Association Discount Notes,
6.32%, due July 24, 1995 2,987,887 2,987,887
5,000,000 Federal National Mortgage
Association Discount Notes,
5.85%, due August 4, 1995 4,972,375 4,972,375
1,120,000 Federal National Mortgage
Association Discount Notes,
5.75%, due September 1, 1995 1,108,909 1,108,909
5,000,000 Federal National Mortgage
Association Discount Notes,
6.01%, due September 22, 1995 4,930,718 4,930,718
42,480,000 42,074,160 42,074,160
REPURCHASE AGREEMENT - 2.36% (Note 4)
5,800,000 NationsBank, 5.98%,
due July 3, 1995
(Collateralized by
U.S. Treasury Notes,
4.625%, due February 15, 1996) 5,800,000 5,800,000
TOTAL INVESTMENTS - 99.17% $ 243,430,708 243,430,708
Other assets less liabilities - 0.83% 2,035,997
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share; 750,000,000
shares of $0.01 par value
capital shares authorized;
245,496,385 shares outstanding) $ 245,466,705
For federal income tax purposes, the identified cost of investments owned at
June 30, 1995 was $243,430,708.
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL STATEMENTS
Principal Market
Amount Description Cost Value
FEDERAL PORTFOLIO
GOVERNMENT SPONSORED ENTERPRISES _ 95.36%
$ 4,790,000 Federal Farm Credit Banks
Discount Notes,
5.87%, due July 5, 1995 $ 4,786,877 $ 4,786,877
10,000,000 Federal Farm Credit Banks
Discount Notes,
5.85%, due July 19, 1995 9,970,750 9,970,750
7,000,000 Federal Farm Credit Banks
Discount Notes,
6.03%, due September 14, 1995 6,912,062 6,912,062
2,000,000 Federal Home Loan Banks
Discount Notes,
6.50%, due July 7, 1995 1,997,833 1,997,833
1,000,000 Federal Home Loan Banks
Discount Notes,
6.52%, due July 7, 1995 998,913 998,913
4,000,000 Federal Home Loan Banks
Discount Notes,
6.55%, due July 7, 1995 3,995,633 3,995,633
13,900,000 Federal Home Loan Banks
Discount Notes,
5.87%, due July 10, 1995 13,879,602 13,879,602
2,000,000 Federal Home Loan Banks
Discount Notes,
6.10%, due July 24, 1995 1,992,206 1,992,206
4,000,000 Federal Home Loan Banks
Discount Notes,
6.15%, due July 24, 1995 3,984,283 3,984,283
8,000,000 Federal Home Loan Banks
Discount Notes,
5.93%, due August 7, 1995 7,951,242 7,951,242
2,800,000 Federal Home Loan Banks
Discount Notes,
5.81%, due August 22, 1995 2,776,502 2,776,502
5,000,000 Federal Home Loan Banks
Discount Notes,
5.915%, due September 5, 1995 4,945,779 4,945,779
1,000,000 Federal Home Loan Banks
Discount Notes,
6.15%, due September 28, 1995 984,796 984,796
700,000 Federal Home Loan Banks
Discount Notes,
6.95%, due December 22, 1995 676,486 676,486
5,000,000 Federal Home Loan Banks
Discount Notes,
6.28%, due February 2, 1996 4,811,000 4,811,000
3,040,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.88%, due July 5, 1995 3,038,014 3,038,014
5,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.90%, due July 10, 1995 4,992,625 4,992,625
GOVERNMENT SPONSORED ENTERPRISES (Continued)
3,320,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.90%, due July 12, 1995 3,314,015 3,314,015
5,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.87%, due July 13, 1995 4,990,217 4,990,217
8,400,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.88%, due July 14, 1995 8,382,164 8,382,164
10,500,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.88%, due July 17, 1995 10,472,560 10,472,560
5,100,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.88%, due July 19, 1995 5,085,006 5,085,006
11,125,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.85%, due July 21, 1995 11,088,844 11,088,844
2,500,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.78%, due September 20, 1995 2,467,487 2,467,487
1,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.65%, due November 1, 1995 980,696 980,696
1,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.58%, due January 2, 1996 971,325 971,325
1,180,000 Federal National Mortgage
Association Discount Notes,
5.88%, due July 5, 1995 1,179,229 1,179,229
4,815,000 Federal National Mortgage
Association Discount Notes,
5.88%, due July 6, 1995 4,811,068 4,811,068
6,460,000 Federal National Mortgage
Association Discount Notes,
5.88%, due July 7, 1995 6,453,669 6,453,669
5,000,000 Federal National Mortgage
Association Discount Notes,
6.32%, due July 10, 1995 4,992,100 4,992,100
13,500,000 Federal National Mortgage
Association Discount Notes,
5.87%, due July 12, 1995 13,475,786 13,475,786
1,500,000 Federal National Mortgage
Association Discount Notes,
5.90%, due July 19, 1995 1,495,575 1,495,575
5,000,000 Federal National Mortgage
Association Discount Notes,
6.01%, due August 14, 1995 4,963,272 4,963,272
GOVERNMENT SPONSORED ENTERPRISES (Continued)
2,500,000 Federal National Mortgage
Association Discount Notes,
5.84%, due August 21, 1995 2,479,317 2,479,317
2,500,000 Federal National Mortgage
Association Discount Notes,
5.80%, due September 7, 1995 2,472,611 2,472,611
3,000,000 Federal National Mortgage
Association Discount Notes,
5.78%, due September 15, 1995 2,963,393 2,963,393
2,500,000 Federal National Mortgage
Association Discount Notes,
5.80%, due September 15, 1995 2,469,389 2,469,389
175,130,000 174,202,326 174,202,326
REPURCHASE AGREEMENT - 5.23% (Note 4)
9,545,000 NationsBank, 5.95%, due July 3, 1995
(Collateralized by U.S.
Treasury Notes,
6.875%, due March 31, 2000) 9,545,000 9,545,000
TOTAL INVESTMENTS - 100.59% $ 183,747,326 183,747,326
Other assets less liabilities - (0.59%) (1,075,725)
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share;
750,000,000 shares of $0.01 par value
capital shares authorized;
182,719,725 shares outstanding) $ 182,671,601
For federal income tax purposes, the identified cost of investments owned at
June 30, 1995 was $183,747,326.
<PAGE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 1995
Prime Federal
Portfolio Portfolio
ASSETS:
Investment securities, at market value
(identified cost of $243,430,708
and $183,747,326, respectively) $243,430,708 $183,747,326
Cash 2,093,172 -
Interest receivable 2,890 3,155
Other assets 3,497 1,441
Total assets 245,530,267 183,751,922
LIABILITIES AND NET ASSETS:
Cash overdraft - 1,080,321
Other liabilities 63,562 -
Total liabilities 63,562 1,080,321
NET ASSETS $245,466,705 $182,671,601
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $245,499,751 $182,720,386
Accumulated net realized loss on investment
transactions (33,046) (48,785)
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $245,466,705 $182,671,601
Capital shares, $0.01 par value
Authorized 750,000,000 750,000,000
Outstanding 245,496,385 182,719,725
NET ASSET VALUE PER SHARE $ 1.00 $ 1.00
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL STATEMENTS
Statement of Operations
Year Ended June 30, 1995
Prime Federal
Portfolio Portfolio
INVESTMENT INCOME:
Income:
Interest $ 11,187,016 $ 10,447,110
Expenses:
Management fees (Note 3) 1,010,648 964,735
Registration fees and other expenses 7,059 8,092
1,017,707 972,827
Net investment income 10,169,309 9,474,283
REALIZED LOSS ON INVESTMENTS (Note 1):
Realized loss from investment transactions:
Proceeds from sales of investments 11,483,908,086 16,092,273,061
Cost of investments sold 11,483,937,510 16,092,300,813
Net realized loss from investment
transactions (29,424) (27,752)
Increase in net assets resulting
from operations $ 10,139,885 $ 9,446,531
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
For The Two Years Ended June 30, 1995
Prime Federal
Portfolio Portfolio
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 5,769,321 $ 7,261,132
Net realized loss from investment
transactions (465) (21,176)
Net increase in net assets resulting
from operations 5,768,856 7,239,956
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (5,769,321) (7,261,132)
Net realized gain from investment
transactions - (4,776)
Total distributions to shareholders (5,769,321) (7,265,908)
DECREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ($1.00 per share) 159,382,200 317,425,151
Net asset value of shares issued for
reinvestment of distributions
($1.00 per share) 568,924 364,151
159,951,124 317,789,302
Cost of shares redeemed ($1.00 per share) (201,810,454) (393,880,027)
Net decrease from capital share
transactions (41,859,330) (76,090,725)
Total decrease in net assets (41,859,795) (76,116,677)
NET ASSETS - June 30, 1993 214,147,420 271,264,344
NET ASSETS - June 30, 1994 $ 172,287,625 $ 195,147,667
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 10,169,309 $ 9,474,283
Net realized loss from investment
transactions (29,424) (27,752)
Net increase in net assets resulting
from operations 10,139,885 9,446,531
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (10,169,309) (9,474,283)
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold
($1.00 per share) 525,233,291 369,926,500
Net asset value of shares issued for
reinvestment of distributions
($1.00 per share) 1,242,170 603,541
526,475,461 370,530,041
Cost of shares redeemed
($1.00 per share) (453,266,957) (382,978,355)
Net increase (decrease) from capital
share transactions 73,208,504 (12,448,314)
Total increase (decrease) in net
assets 73,179,080 (12,476,066)
NET ASSETS - June 30, 1994 172,287,625 195,147,667
NET ASSETS - June 30, 1995 $ 245,466,705 $ 182,671,601
See accompanying Notes to Financial Statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES - The Fund is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. Its shares are currently issued in two series
with each series, in effect, representing a separate fund. The following is a
summary of significant accounting policies consistently followed by the Fund
in the preparation of its financial statements.
Investments - Valuation of securities is on the basis of amortized cost which
approximates market value. Investment transactions are recorded on the trade
date. Investment income and dividends to shareholders are recorded daily and
dividends are distributed monthly. Realized gains and losses from investment
transactions are reported on the identified cost basis.
Federal and State Taxes - The Fund's policy is to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and
to distribute all of its taxable income to its shareholders. Therefore, no
provision for federal or state tax is required. At June 30, 1995, the Fund
has accumulated net realized losses on sales of investments for federal
income tax purposes of $33,046 (Prime Portfolio) and $48,785 (Federal
Portfolio), which are available to offset future taxable gains.
2. PURCHASES AND SALES OF SECURITIES - The aggregate amounts of security
transactions during the year ended June 30, 1995, were as follows:
Prime Portfolio
Purchases $ 11,552,830,522
Proceeds from sales 11,483,908,086
Federal Portfolio
Purchases $ 16,077,234,291
Proceeds from sales 16,092,273,061
3. MANAGEMENT FEES - Management fees, which include all normal expenses of
the Fund other than taxes, fees and other charges of governmental agencies
for qualifying the Fund's shares for sale, special legal fees, interest and
brokerage commissions, are paid to Jones & Babson, Inc., an affiliated
company. These fees are based on average daily net assets of the Fund at the
annual rate of one-half of one percent of net assets. Certain officers and/or
directors of the Fund are also officers and/or directors of Jones & Babson,
Inc.
4. REPURCHASE AGREEMENTS - Securities purchased under agreements to resell
are held by the Fund's custodian, UMB Bank, n.a. The Fund's adviser monitors
the market values of the underlying securities which they have purchased on
behalf of the Fund to ensure that they are sufficient to protect the Fund in
the event of default by the seller. In the event of bankruptcy or other
default of the seller, the Fund could experience delays in liquidating the
underlying securities and possible loss to the extent that the repurchase
agreement and accrued interest is more than proceeds received upon
liquidation of the underlying securities.
<PAGE>
FINANCIAL HIGHLIGHTS
The following table sets forth information as to capital and income changes
for a share outstanding for each of the five years in the period ended
June 30, 1995:
1995 1994 1993 1992 1991
PRIME PORTFOLIO
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income 0.05 0.03 0.03 0.04 0.07
Less distributions:
Dividends from net investment income (0.05) (0.03) (0.03) (0.04) (0.07)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 5% 3% 3% 5% 7%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 245 $ 172 $ 214 $ 209 $ 217
Ratio of expenses to average net assets 0.51% 0.51% 0.51% 0.51% 0.51%
Ratio of net investment income to
average net assets 5.10% 2.92% 2.87% 4.44% 6.85%
FEDERAL PORTFOLIO
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income 0.05 0.03 0.03 0.04 0.07
Less distributions:
Dividends from net investment income (0.05) (0.03) (0.03) (0.04) (0.07)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 5% 3% 3% 5% 7%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 183 $ 195 $ 271 $ 250 $ 217
Ratio of expenses to average net assets 0.51% 0.50% 0.50% 0.51% 0.51%
Ratio of net investment income to
average net assets 4.97% 2.81% 2.81% 4.43% 6.68%
See accompanying Notes to Financial Statements.
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors
of Scout Money Market Fund, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the statement of net assets, of Scout Money Market Fund, Inc.
(formerly UMB Money Market Fund, Inc.) (a Maryland corporation comprising,
respectively, the Prime and Federal Portfolios) as of June 30, 1995, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and the financial highlights. Our procedures
included confirmation of securities owned as of June 30, 1995, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement and the financial
highlights presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios constituting the Scout Money Market Fund,
Inc. as of June 30, 1995, the results of their operations for the year then
ended, the changes in their net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years
in the period then ended in conformity with generally accepted accounting
principles.
ARTHUR ANDERSEN LLP
Kansas City, Missouri,
August 4, 1995
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.
