SCOUT
MONEY MARKET
FUND
A no-load mutual fund
with primary emphasis
on maximum income
consistent with safety
of principal and
maintenance of liquidity.
Quarterly Report
September 30, 1996
TO THE SHAREHOLDERS
Scout Money Market Fund's Federal Portfolio earned 1.23% for the quarter
ended September 30, 1996, while the Prime Portfolio earned 1.24%. The 7-
day current yield on September 30, 1996 was 4.82% for the Federal
Portfolio and 4.87% for the Prime Portfolio.
Money market funds are neither insured nor guaranteed by the U.S.
Government. There is no assurance that the fund will maintain a stable
net asset value of one dollar per share.
It has been difficult to interpret the ongoing stream of government
economic reports about the Federal Reserve's next move on interest
rates. It appears unlikely that the Fed will tighten at the next Federal
Open Market Committee (FOMC) meeting scheduled in November 1996. In
fact, some economists are speculating the possibility of the Fed easing
interest rates in the first half of 1997. Most recently, the bond market
rallied and the long bond's yield fell to 6.72%, its lowest yield in two
months. This rally was in reaction to better than expected Economic Cost
Index reports. Barring any disappointing economic reports in the near
future, long bond yields may fall to a lower trading range. Meanwhile,
short term rates have been remarkably stable throughout third quarter,
and will probably remain stable throughout 1996.
We appreciate your continued interest in Scout Money Market Fund, Inc.
Sincerely,
/s/William A Faust
William A. Faust
UMB Investment Advisors
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 insured by the Federal Deposit Insurance Corporation or any other
applicable deposit insurance. These shares involve investment risks,
including the possible loss of the principal amount invested.
FINANCIAL STATEMENTS
Statement of Net Assets
September 30, 1996
Principal Market
Amount Description Value
PRIME PORTFOLIO
SHORT-TERM CORPORATE NOTES - 88.90%
$ 3,900,000 AIG Funding Inc.,
5.32 %, due October 21, 1996 $ 3,888,473
4,000,000 AIG Funding Inc.,
5.30 %, due October 23, 1996 3,987,044
4,000,000 Air Products & Chemicals Co.,
5.35%, due October 9, 1996 3,995,253
4,000,000 Air Products & Chemicals Co.,
5.33%, due October 11, 1996 3,994,078
2,000,000 Air Products & Chemicals Co.,
5.36%, due October 16, 1996 1,995,533
1,627,000 Air Products & Chemicals Co.,
5.28%, due October 16, 1996 1,623,421
2,450,000 Air Products & Chemicals Co.,
5.31%, due October 16, 1996 2,444,579
12,500,000 Aluminum Co. of America,
5.32%, due October 25, 1996 12,455,667
8,475,000 American Greetings Co.,
5.33%, due October 17, 1996 8,454,924
7,500,000 American Greetings Co.,
5.43%, due October 22, 1996 7,476,244
7,500,000 Amoco Co.,
5.30%, due October 10, 1996 7,490,063
2,102,000 AT&T,
5.75%, due October 1, 1996 2,102,000
7,500,000 Campbell Soup Co.,
5.28%, due October 29, 1996 7,469,200
3,000,000 Coca-Cola Co. Inc.,
5.30%, due October 24, 1996 2,989,842
7,500,000 Dow Chemical Co.,
5.80%, due October 1, 1996 7,500,000
2,200,000 Dun & Bradstreet Corp.,
5.30%, due October 1, 1996 2,200,000
5,000,000 Dun & Bradstreet Corp.,
5.37%, due October 15, 1996 4,989,558
7,500,000 Dun & Bradstreet Corp.,
5.36%, due October 22, 1996 7,476,550
2,500,000 Dun & Bradstreet Corp.,
5.42%, due October 24, 1996 2,491,343
11,000,000 duPont (E.I.) deNemours & Co.,
5.33%, due October 11, 1996 10,983,714
1,000,000 duPont (E.I.) deNemours & Co.,
5.30%, due October 25, 1996 991,903
2,400,000 Engelhard Corp.,
5.36%, due October 28, 1996 2,390,352
7,500,000 Heinz H. J. Co.,
5.24%, due October 7, 1996 7,493,450
10,000,000 Hershey Foods Corp.,
5.26%, due October 9, 1996 9,988,311
6,500,000 Hershey Foods Corp.,
5.26%, due October 21, 1996 6,481,005
10,000,000 International Business Machines,
5.32%, due October 8, 1996 9,989,656
5,000,000 Knight Ridder Inc.,
5.33%, due October 18, 1996 4,987,415
7,500,000 Knight Ridder Inc.,
5.38%, due October 30, 1996 7,467,496
2,000,000 Laclede Gas Co.,
5.37%, due October 4, 1996 1,999,105
3,500,000 Laclede Gas Co.,
5.38%, due October 15, 1996 3,492,677
3,500,000 Laclede Gas Co.,
5.35%, due October 23, 1996 3,488,557
4,000,000 Laclede Gas Co.,
5.38%, due October 25, 1996 3,985,653
4,000,000 Laclede Gas Co.,
5.45%, due November 8, 1996 3,976,989
5,000,000 Lilly Eli & Co.,
5.24%, due October 2, 1996 4,999,272
1,790,000 Marsh & McLennan Cos. Inc.,
5.52%, due December 9, 1996 1,771,062
2,000,000 Marsh & McLennan Cos. Inc.,
5.33%, due January 7, 1997 1,970,981
2,000,000 Minnesota Minning & Mfg. Co.,
5.27%, due October 24, 1996 1,993,266
2,536,000 Minnesota Minning & Mfg. Co.,
5.32%, due October 24, 1996 2,527,380
1,200,000 Minnesota Minning & Mfg. Co.,
5.40%, due October 24, 1996 1,195,860
2,600,000 Monsanto Co.,
5.28%, due October 4, 1996 2,598,856
6,100,000 Monsanto Co.,
5.30%, due October 4, 1996 6,097,306
5,000,000 Motorola Inc.,
5.33%, due October 16, 1996 4,988,896
2,950,000 Motorola Inc.,
5.40%, due October 24, 1996 2,939,822
4,000,000 Nalco Chemical Co.,
5.33%, due October 15, 1996 3,991,709
5,100,000 Nalco Chemical Co.,
5.36%, due October 18, 1996 5,087,091
4,300,000 Penny Funding Corp.,
5.34%, due October 16, 1996 4,290,432
10,000,000 PepsiCo Inc.,
5.33%, due October 24, 1996 9,965,947
15,000,000 Philip Morris Cos. Inc.,
5.30%, due October 2, 1996 14,997,792
2,000,000 Proctor & Gamble Co.,
5.30%, due October 17, 1996 1,995,289
15,000,000 Shell Oil Co. Seer A,
5.23%, due October 1, 1996 15,000,000
10,000,000 Southwestern Bell Telephone Co.,
5.32%, due November 7, 1996 9,945,322
10,000,000 Weyerhauser Co.,
5.30%, due November 25, 1996 9,919,028
7,500,000 Wisconsin Electric Power Co.,
5.28%, due October 28, 1996 7,470,300
15,000,000 Xerox Corp.,
5.28%, due October 3, 1996 14,995,600
1,700,000 Xerox Corp.,
5.28%, due October 16, 1996 1,696,260
303,930,000 303,177,526
GOVERNMENT SPONSORED ENTERPRISES - 12.16%
3,000,000 Federal Farm Credit Bank,
5.33%, due January 2, 1997 3,000,000
5,000,000 Federal Farm Credit Bank,
4.95%, due March 3, 1997 4,996,092
2,500,000 Federal Home Loan Banks,
5.26%, due January 7, 1997 2,464,203
1,500,000 Federal Home Loan Banks,
5.20%, due January 10, 1997 1,478,117
4,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.225%, due October 10, 1996 4,494,122
2,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.32%, due October 15, 1996 2,494,828
7,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.30%, due October 17, 1996 7,482,333
1,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.40%, due November 29, 1996 1,486,725
2,110,000 Federal National Mortgage Association
Deb.,
8.45%, due October 21, 1996 2,113,472
2,500,000 Federal National Mortgage Association
Discount Notes,
5.32%, due October 2, 1996 2,499,630
500,000 Federal National Mortgage Association
Discount Notes,
5.20%, due October 3, 1996 499,856
5,000,000 Federal National Mortgage Association
Discount Notes,
5.40%, due December 2, 1996 4,953,500
1,000,000 Federal National Mortgage Association
Medium Term Notes,
5.64%, due October 2, 1996 1,000,004
2,500,000 Federal National Mortgage Association
Medium Term Notes,
5.68%, due October 7, 1996 2,500,045
41,610,000 41,462,927
TOTAL INVESTMENTS - 101.06% $ 344,640,453
Other assets less liabilities - (1.06%) (3,623,548)
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share;
1,500,000,000 shares of $0.01 par value
capital shares authorized;
341,046,588.34 shares outstanding) $ 341,016,905
Valuation of securities is on the basis of amortized cost,
which approximates market value.
FINANCIAL STATEMENTS
Statement of Net Assets
September 30, 1996
Principal Market
Amount Description Value
FEDERAL PORTFOLIO
GOVERNMENT SPONSORED ENTERPRISES - 101.14%
$ 11,000,000 Federal Agricultural Mortgage Corporation,
Discount Notes,
5.20%, due October 15, 1996 $ 11,975,733
2,000,000 Federal Farm Credit Banks,
5.33%, due January 2, 1997 2,000,000
3,000,000 Federal Farm Credit Banks,
4.95%, due March 3, 1997 2,997,655
7,120,000 Federal Farm Credit Banks
Discount Notes,
5.18%, due October 3, 1996 7,117,951
7,000,000 Federal Farm Credit Banks
Discount Notes,
5.34%, due October 8, 1996 6,992,732
7,500,000 Federal Farm Credit Banks
Discount Notes,
5.19%, due October 25, 1996 7,474,050
4,000,000 Federal Farm Credit Banks
Discount Notes,
5.34%, due October 30, 1996 3,982,777
7,000,000 Federal Home Loan Banks
Discount Note,
5.31%, due October 4, 1996 6,996,902
1,000,000 Federal Home Loan Banks
Discount Notes,
5.35%, due October 29, 1996 995,839
1,000,000 Federal Home Loan Banks
Discount Notes,
5.35%, due October 30, 1996 995,690
2,500,000 Federal Home Loan Banks
Discount Notes,
5.26%, due January 7, 1997 2,464,203
2,500,000 Federal Home Loan Banks
Discount Notes,
5.21%, due January 8, 1997 2,464,181
2,000,000 Federal Home Loan Banks
Discount Notes,
5.22%, due January 9, 1997 1,971,000
3,915,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.23%, due October 1, 1996 3,915,000
4,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.23%, due October 3, 1996 3,998,838
11,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.33%, due October 7, 1996 10,990,228
15,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.30%, due October 10, 1996 14,980,125
4,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.35%, due October 10, 1996 3,994,650
5,205,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.25%, due October 16, 1996 5,193,614
12,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.30%, due October 17, 1996 12,470,556
1,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.33%, due October 18, 1996 997,483
1,408,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.24%, due October 18, 1996 1,404,516
2,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.26%, due October 18, 1996 2,493,790
1,499,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.20%, due October 21, 1996 1,494,670
2,910,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.27%, due October 21, 1996 2,901,480
2,640,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.29%, due October 21, 1996 2,632,241
15,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.23%, due October 22, 1996 14,954,237
4,600,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.34%, due November 7, 1996 4,574,754
1,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.40%, due November 29, 1996 991,150
3,000,000 Federal National Mortgage Association
Discount Notes,
5.32%, due October 1, 1996 3,000,000
4,600,000 Federal National Mortgage Association
Discount Notes,
5.20%, due October 1, 1996 4,600,000
6,500,000 Federal National Mortgage Association
Discount Notes,
5.21%, due October 2, 1996 6,499,059
7,500,000 Federal National Mortgage Association
Discount Notes,
5.32%, due October 2, 1996 7,498,892
4,000,000 Federal National Mortgage Association
Discount Notes,
5.32%, due October 7, 1996 3,996,453
1,465,000 Federal National Mortgage Association
Discount Notes,
5.24%, due October 10,1996 1,463,081
10,000,000 Federal National Mortgage Association
Discount Notes,
5.28%, due October 11, 1996 9,985,333
15,000,000 Federal National Mortgage Association
Discount Notes,
5.29%, due October 15, 1996 14,969,142
1,000,000 Federal National Mortgage Association
Discount Notes,
5.24%, due October 16, 1996 997,817
4,000,000 Federal National Mortgage Association
Discount Notes,
5.19%, due October 16, 1996 3,991,350
7,500,000 Federal National Mortgage Association
Discount Notes,
5.26%, due October 17, 1996 7,482,468
7,500,000 Federal National Mortgage Association
Discount Notes,
5.22%, due October 18, 1996 7,481,512
12,500,000 Federal National Mortgage Association
Discount Notes,
5.26%, due October 23, 1996 12,459,819
1,400,000 Federal National Mortgage Association
Discount Notes,
5.20%, due October 24, 1996 1,395,349
6,000,000 Federal National Mortgage Association
Discount Notes,
5.19%, due October 28, 1996 5,976,645
3,500,000 Federal National Mortgage Association
Discount Notes,
5.40%, due December 2, 1996 3,467,450
1,000,000 Federal National Mortgage Association
Discount Notes,
5.36%, due December 13, 1996 989,131
1,000,000 Federal National Mortgage Association
Discount Notes,
5.44%, due March 14, 1997 975,218
1,000,000 Federal National Mortgage Association
Discount Notes,
5.50%, due May 14, 1997 965,625
1,000,000 Federal National Mortgage Association
Medium Term Notes,
5.64%, due October 2, 1996 1,000,004
1,000,000 Federal National Mortgage Association
Medium Term Notes,
5.68%, due October 7, 1996 1,000,018
5,000,000 Tennessee Valley Authority
Discount Notes
5.34%, due October 3, 1996 4,998,517
251,262,000 251,608,928
TOTAL INVESTMENTS - 101.14% $ 251,608,928
Other assets less liabilities - (1.14%) (2,839,791)
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share;
1,500,000,000 shares of $0.01 par value
capital shares authorized;
248,817,261.44 shares outstanding) $ 248,769,137
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.
BOARD OF DIRECTORS
AND OFFICERS
Board of Directors
Larry D. Armel
William E. Hoffman, D.D.S.
Eric T. Jager
Stephen F. Rose
Stuart Wien
Officers
Larry D. Armel, President
P. Bradley Adams, Vice President & Treasurer
Michael A. Brummel, Vice President
Martin A. Cramer, Vice President & Secretary
John G. Dyer, Vice President
Manager and Investment Counsel
UMB Bank, n.a., Kansas City, Missouri
Legal Counsel
Stradley, Ronon, Stevens & Young,
Philadelphia, Pennsylvania
John G. Dyer, Kansas City, Missouri
Custodian
UMB Bank, n.a., Kansas City, Missouri
JONES & BABSON
MUTUAL FUNDS
P.O. Box 410498
Kansas City, MO 64141-0498
TOLL-FREE 1-800-996-2862
