SCOUT MONEY MARKET FUND, INC.
A no-load mutual fund with primary emphasis
on maximum income consistent with safety
of principal and maintenance of liquidity.
Quarterly Report
March 31, 1996
TO THE SHAREHOLDERS
Scout Money Market Fund's Federal Portfolio earned 1.23% for
the quarter ended March 31, 1996, while the Prime Portfolio
earned 1.24%. The 7-day current yield as of March 29, 1996
was 4.79% for the Federal Portfolio and 4.82% 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.
A dramatic reversal of economic outlook and market
psychology took place during the first quarter of 1996. The
market reacted strongly to various economic reports
suggesting a growing economy versus pervious predictions of
a weakening economy and continued Fed easing. Anticipation
of further rate cuts by the Fed evaporated almost overnight
as fears of Fed tightening increased. Unfortunately, this
change in the market's philosophy resulted in the worst
quarter for the bond market since the first quarter of 1994.
While we believe that these fears are overblown, we intend
to pay them adequate respect by maintaining a relatively
short average life in the Fund between twenty five and
thirty five days.
For money market instruments the most significant change was
a return to a positive yield curve rather than an inverted
yield curve. For the first time in a while a premium was
paid to the investor who had extended maturities. But as we
noted earlier, we do not believe that the current
environment warrants extending maturities to any appreciable
degree.
We appreciate your continued interest in Scout Money Market
Fund.
Sincerely,
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
March 31, 1996
Principal Market
Amount Description Value
PRIME PORTFOLIO
SHORT-TERM CORPORATE NOTES 93.74%
$ 15,000,000 Abbot Laboratories, 5.20%,
due April 2, 1996 $ 14,997,833
3,000,000 Aluminum Company of America, 5.40%,
due April 9, 1996 2,996,400
5,000,000 Aluminum Company of America, 5.33%,
due April 18, 1996 4,987,415
10,000,000 American Greetings Company, 5.34%,
due April 16, 1996 9,977,750
7,500,000 American Telephone & Telegraph Corporation,
5.32%, due April 15, 1996 7,484,483
5,000,000 Ameritech Corporation, 5.30%,
due April 12, 1996 4,991,903
3,000,000 Ameritech Corporation, 5.10%,
due April 16, 1996 2,993,625
8,500,000 BellSouth Telecommunications, 5.28%,
due May 10, 1996 8,451,380
5,000,000 Coca-Cola Company, 5.12%,
due April 25, 1996 4,975,208
5,000,000 Coca-Cola Company, 5.10%,
due May 15, 1996 4,982,933
3,104,000 Donnelly (R. R.) Corporation, 5.50%,
due April 1, 1996 3,104,000
5,000,000 Dover Corporation, 5.21%,
due April 8, 1996 4,994,935
4,000,000 Dover Corporation, 5.38%,
due May 1, 1996 3,982,067
2,500,000 Dow Chemical Company, 5.12%,
due April 4, 1996 2,498,933
5,000,000 Dow Chemical Company, 5.11%,
due April 9, 1996 4,994,322
12,500,000 duPont (E.I.) deNemours & Company, 5.33%,
due April 24, 1996 12,457,434
5,000,000 Gannett Corporation, 5.29%,
due April 3, 1996 4,998,531
5,000,000 Gannett Corporation, 5.29%,
due April 12, 1996 4,991,918
5,000,000 Gillette Company 4.75%,
due August 15, 1996 4,991,338
3,000,000 GTE North Corporation, 5.35%,
due April 3, 1996 2,999,108
1,131,000 GTE North Corporation, 5.48%,
due April 9, 1996 1,129,623
5,000,000 Hershey Food Corporation, 5.18%,
due April 9,1996 4,994,244
10,000,000 Hershey Food Corporation, 5.23%,
due April 11, 1996 9,985,472
5,000,000 Hewlett Packard Company, 5.10%,
due April 15, 1996 4,990,083
4,000,000 Hewlett Packard Company, 5.22%,
due April 23, 1996 3,987,240
3,000,000 IBM Corporation, 5.35%,
due April 19, 1996 2,991,975
1,500,000 KN Energy, Incorporated, 5.20%,
due April 2, 1996 1,499,783
2,500,000 Kellogg Company, 5.11%,
due April 4, 1996 2,498,935
2,000,000 Kimberly Clark Corporation, 5.13%,
due April 19, 1996 1,994,870
2,000,000 Marsh & McClennan Companies, Incorporated, 5.53%,
due April 3, 1996 1,999,386
2,000,000 Nalco Chemical Company, 5.26%,
due April 12, 1996 1,996,786
5,000,000 Nalco Chemical Company, 5.21%,
due April 19, 1996 4,986,975
7,000,000 Nalco Chemical Company, 5.30%,
due April 23, 1996 6,977,328
6,000,000 PepsiCo, Incorporated, 5.32%,
due May 1, 1996 5,973,400
4,000,000 PepsiCo, Incorporated, 5.63%,
due May 10, 1996 3,975,603
3,000,000 Philip Morris Companies, Incorporated, 5.32%,
due April 23, 1996 2,990,247
8,000,000 Philip Morris Companies, Incorporated, 5.37%,
due April 23, 1996 7,973,747
3,000,000 Philip Morris Companies, Incorporated, 5.30%,
due May 23, 1996 2,977,033
7,000,000 Proctor & Gamble Corporation, 5.10%,
due May 5, 1996 6,956,367
6,000,000 Progress Capital Holdings, Incorporated, 5.41%,
due April 8, 1996 5,993,688
1,400,000 Progress Capital Holdings, Incorporated, 5.55%,
due April 8,1996 1,398,489
7,500,000 Shell Oil Corporation, 5.32%,
due April 17, 1996 7,482,267
7,500,000 Shell Oil Corporation, 5.32%,
due April 25, 1996 7,473,400
10,000,000 South Carolina Electric & Gas Company, 5.17%,
due April 1, 1996 10,000,000
5,000,000 Southwestern Bell Telephone Company, 5.18%,
due April 1, 1996 5,000,000
2,000,000 Southwestern Bell Telephone Company, 5.23%,
due April 1, 1996 2,000,000
6,025,000 Southwestern Bell Telephone Company, 5.33%,
due April 19, 1996 6,008,943
7,500,000 U. S. West Communications, Incorporated, 5.20%,
due April 3, 1996 7,497,833
5,000,000 U. S. West Communications, Incorporated, 5.17%,
due May 7, 1996 4,974,150
15,000,000 Walt Disney Corporation, 5.30%,
due April 23, 1996 14,951,417
7,000,000 Weyerhauser Company, 5.22%,
due April 12, 1996 6,988,835
15,000,000 Xerox Corporation, 5.20%,
due April 10, 1996 14,980,500
293,160,000 292,480,135
GOVERNMENT SPONSORED ENTERPRISES 6.54%
5,000,000 Federal Farm Credit Bank Discount Notes, 4.95%,
due March 3, 1997 4,991,417
5,255,000 Federal Home Loan Banks Discount Notes, 6.105%,
due May 16, 1996 5,261,585
3,000,000 Federal Home Loan Banks Discount Notes, 8.25%,
due May 27,1996 3,013,739
2,500,000 Federal National Mortgage Association
Discount Notes, 5.63%,
due June 28, 1996 2,501,190
2,500,000 Federal National Mortgage Association
Discount Notes, 5.68%,
due October 7, 1996 2,501,428
2,110,000 Federal National Mortgage Association
Discount Notes, 8.45%,
due October 21, 1996 2,145,237
20,365,000 20,414,596
TOTAL INVESTMENTS 100.28% $ 312,894,731
Other assets less liabilities (0.28%) (885,933)
TOTAL NET ASSETS 100.00%
(equivalent to $1.00 per share; 750,000,000 shares of
$0.01 par value
capital shares authorized; 312,038,468.91 shares
outstanding) $ 312,008,798
Valuation of securities is on the basis of amortized cost,
which approximates market value.
FEDERAL PORTFOLIO
GOVERNMENT SPONSORED ENTERPRISES 100.37%
$ 15,000,000 Federal Agricultural Mortgage
Corporation Discount Notes, 5.28%,
due April 15, 1996 $ 14,969,200
1,535,000 Federal Farm Credit Banks Discount Notes,
5.25%, due April 1, 1996 1,535,000
1,000,000 Federal Farm Credit Banks Discount Notes,
5.32%, due April 1, 1996 1,000,000
5,000,000 Federal Farm Credit Banks Discount Notes,
5.14%, due April 2, 1996 4,999,286
14,650,000 Federal Farm Credit Banks Discount Notes,
5.13%, due April 9, 1996 14,633,299
575,000 Federal Farm Credit Banks Discount Notes,
5.30%, due April 9, 1996 574,322
7,500,000 Federal Farm Credit Banks Discount Notes,
5.26%, due April 12, 1996 7,487,945
3,000,000 Federal Farm Credit Banks Discount Notes,
5.26%, due April 22, 1996 2,990,795
1,485,000 Federal Farm Credit Banks Discount Notes,
5.32%, due April 22, 1996 1,480,391
1,700,000 Federal Farm Credit Banks Discount Notes,
5.20%, due April 24, 1996 1,694,352
10,000,000 Federal Farm Credit Banks Discount
Notes, 5.10%, due April 25, 1996 9,966,000
2,750,000 Federal Farm Credit Banks Discount Notes,
5.28%, due April 26, 1996 2,739,916
3,000,000 Federal Farm Credit Banks Discount Notes,
4.95%, due March 3, 1997 2,994,850
8,500,000 Federal Home Loan Banks Discount Notes,
5.13%, due April 3, 1996 8,497,577
15,000,000 Federal Home Loan Banks Discount Notes,
5.27%, due April 4, 1996 14,993,412
5,000,000 Federal Home Loan Banks Discount Notes,
5.28%, due April 15, 1996 4,989,733
1,200,000 Federal Home Loan Banks Discount Notes,
5.30%, due April 17, 1996 1,197,173
15,000,000 Federal Home Loan Banks Discount Notes,
5.30%, due April 18, 1996 14,962,458
5,000,000 Federal Home Loan Banks Discount Notes,
5.19%, due April 24, 1996 4,983,420
5,000,000 Federal Home Loan Banks Discount Notes,
6.105%, due May 16, 1996 5,006,265
1,000,000 Federal Home Loan Banks Discount Notes,
4.46%, due May 28, 1996 998,682
2,000,000 Federal Home Loan Banks Discount Notes,
8.25%, due May 27, 1996 2,009,159
3,170,000 Federal Home Loan Banks Discount Notes,
8.25%, due June 25, 1996 3,191,317
10,139,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.25%, due April 1, 1996 10,139,000
3,500,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.28%, due April 1, 1996 3,500,000
2,000,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.25%, due April 4, 1996 1,999,125
1,325,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.28%, due April 5, 1996 1,324,222
15,000,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.15%, due April 11, 1996 14,978,541
15,000,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.25%, due April 11, 1996 14,978,125
8,000,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.32%, due April 22, 1996 7,975,173
1,849,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.38%, due April 30, 1996 1,840,986
10,000,000 Federal National Mortgage Association
Discount Notes, 5.11%, due April 2, 1996 9,998,580
17,000,000 Federal National Mortgage Association
Discount Notes, 5.27%, due April 10, 1996 16,977,602
4,000,000 Federal National Mortgage Association
Discount Notes, 5.50%, due June 12, 1996 4,002,748
1,500,000 Federal National Mortgage Association
Discount Notes, 5.63%, due June 28, 1996 1,500,713
3,000,000 Federal National Mortgage Association
Discount Notes, 8.00%, due July 10, 1996 3,019,457
1,000,000 Federal National Mortgage Association
Discount Notes, 5.68%, due October 7, 1996 1,000,571
221,378,000 221,129,395
TOTAL INVESTMENTS 100.37% $ 221,129,395
Other assets less liabilities (0.37%) (817,252)
TOTAL NET ASSETS 100.00%
(equivalent to $1.00 per share; 750,000,000 shares of
$0.01 par value
capital shares authorized; 220,360,278.90 shares
outstanding) $ 220,312,143
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.
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
Jack 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
