Scout
Money Market
Fund
A no-load mutual fund
with primary emphasis
on maximum income
consistent with safety
of principal and
maintenance of liquidity.
Annual Report
June 30, 1996
TO THE SHAREHOLDERS
Scout Money Market Fund's Federal Portfolio earned 5.21% for the
fiscal year ended June 30, 1996, while the Prime Portfolio earned
5.27%. The 7-day current yield on June 28, 1996 was 4.79% for the
Federal Portfolio and 4.90% 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.
As noted in our last report, market psychology turned quite
negative in the first quarter, and a continuing stream of
stronger than expected economic reports during the second quarter
reinforced the case for higher interest rates. A strong
employment report on July 5, two days after the July Federal Open
Market Committee (FOMC) meeting when the Federal Reserve left
interest rates unchanged, became the capstone of the negative
case and caused a major sell-off in the bond market. In absolute
price terms the long bond declined almost three points, its fifth
worst trading loss in the past nineteen years. The long bond
closed with a yield of 7.19% and for the first time this year the
ten year bond closed with a yield of over 7.00%.
Although the market has recovered significantly from these losses
we believe that until the Fed tightens or evidence of a slowing
economy appears, the markets will be subject to wide changes in
yield.
The current consensus view is that the Fed will raise the Fed
Funds rate by at least 25 basis points and possibly 50 basis
points on or before the November FOMC meeting. We believe most
money market instruments have already priced in a 25 basis point
move by the Fed and if they move by this amount the market will
simply adjust to another 25 basis point move on or before their
next meeting. For this reason we have consciously kept the
average life of the portfolios somewhat shorter than usual in
anticipation of higher rates later in the quarter.
Baird, Kurtz & Dobson, independent auditor for the other Scout
Funds, has been replaced by Geo. S. Olive & Co. LLC, whose
opinion is contained in this report.
We appreciate your continued interest in Scout Money Market Fund.
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
June 30, 1996
<TABLE>
<CAPTION>
Face Market
Amount Description Cost Value
<S> <C> <C>
PRIME PORTFOLIO
SHORT-TERM CORPORATE NOTES - 86.68%
10,000,000 Abbott Laboratories,
5.27%, due July 3, 1996 $ 9,997,072 $ 9,997,072
6,000,000 Air Products & Chemicals Co.,
5.28%, due July 5, 1996 5,996,480 5,996,480
5,000,000 American Greetings Co.,
5.36%, due July 16, 1996 4,988,833 4,988,833
9,150,000 American Greetings Co.,
5.35%, due July 18, 1996 9,126,884 9,126,884
2,500,000 Ameritech Corp.,
5.28%, due July 15, 1996 2,494,867 2,494,867
5,000,000 Ameritech Corp.,
5.36%, due August 23, 1996 4,960,544 4,960,544
15,000,000 Amoco Co.,
5.28%, due July 10, 1996 14,980,200 14,980,200
5,550,000 Anheuser-Busch Cos. Inc.,
5.30%, due July 1, 1996 5,550,000 5,550,000
10,000,000 Anheuser-Busch Cos. Inc.,
5.30%, due July 17, 1996 9,976,444 9,976,444
5,000,000 Avery Dennison Corp.,
5.45%, due July 2, 1996 4,999,243 4,999,243
9,240,000 BellSouth Telecommunications,
5.25%, due July 2, 1996 9,238,653 9,238,653
5,300,000 Campbell Soup Co.,
5.32%, due July 12, 1996 5,291,385 5,291,385
15,000,000 Chevron Oil Finance Co.,
5.32%, due July 29, 1996 14,937,933 14,937,933
15,000,000 Donnelly (R.R.) Corp.,
5.55%, due July 1, 1996 15,000,000 15,000,000
15,000,000 Duke Power Co.,
5.31%, due July 12, 1996 14,975,663 14,975,663
5,000,000 duPont (E.I.) deNemours & Co.,
5.35%, due August 5, 1996 4,973,993 4,973,993
5,000,000 Gannett Inc.,
5.28%, due July 15, 1996 4,989,733 4,989,733
10,000,000 Gannett Inc.,
5.33%, due July 18, 1996 9,974,831 9,974,831
10,000,000 General Re Corp.,
5.34%, due July 24, 1996 9,965,883 9,965,883
5,000,000 General Re Corp.,
5.36%, due August 5, 1996 4,973,944 4,973,944
5,000,000 Gillette Co.,
4.75%, due August 15, 1996 4,997,134 4,997,134
10,000,000 Heinz H. J. Co.,
5.28%, due July 2, 1996 9,998,533 9,998,533
15,000,000 Hershey Foods Corp.,
5.28%, due July 24, 1996 14,949,400 14,949,400
10,000,000 Knight Ridder Inc.,
5.28%, due August 8, 1996 9,944,267 9,944,267
3,000,000 Laclede Gas Co.,
5.35%, due July 15, 1996 2,993,758 2,993,758
1,000,000 Lilly Eli & Co.,
5.31%, due August 13, 1996 993,658 993,658
2,000,000 Marsh & McLennan Cos. Inc.,
5.33%, due January 7, 1997 1,943,739 1,943,739
15,000,000 Motorola Inc.,
5.32%, due July 26, 1996 14,944,583 14,944,583
7,000,000 Nalco Chemical Co.,
5.30%, due July 11, 1996 6,989,694 6,989,694
8,000,000 Nalco Chemical Co.,
5.39%, due August 7, 1996 7,955,682 7,955,682
2,300,000 PepsiCo Inc.,
5.32%, due July 8, 1996 2,297,621 2,297,621
15,000,000 Proctor & Gamble Co.,
5.27%, due July 8, 1996 14,984,629 14,984,629
SHORT-TERM CORPORATE NOTES (Continued)
2,500,000 Snap on Tools Corp.,
5.35%, due July 11, 1996 2,496,285 2,496,285
500,000 Southwestern Bell Telephone Co.,
5.32%, due July 11, 1996 499,261 499,261
15,000,000 Southwestern Bell Telephone Co.,
5.25%, due July 22, 1996 14,954,063 14,954,063
8,000,000 Wisconsin Electric Power Co.,
5.30%, due July 8, 1996 7,991,756 7,991,756
287,040,000 286,326,648 286,326,648
GOVERNMENT SPONSORED ENTERPRISES - 13.61%
2,500,000 Federal Farm Credit Bank,
5.30%, due August 1, 1996 2,500,000 2,500,000
5,000,000 Federal Farm Credit Bank,
4.95%, due March 3, 1997 4,993,741 4,993,741
2,500,000 Federal Home Loan Banks,
8.25%, due September 25, 1996 2,516,314 2,516,314
1,500,000 Federal Home Loan Banks
Discount Notes,
5.00%, due July 1, 1996 1,500,000 1,500,000
2,500,000 Federal Home Loan Banks
Discount Notes,
5.26%, due January 7, 1997 2,430,597 2,430,597
1,500,000 Federal Home Loan Banks
Discount Notes,
5.20%, due January 10, 1997 1,458,183 1,458,183
2,500,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.24%, due July 1, 1996 2,500,000 2,500,000
2,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.25%, due July 1, 1996 2,000,000 2,000,000
1,500,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.31%, due July 5, 1996 1,499,115 1,499,115
10,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.27%, due July 15, 1996 9,979,506 9,979,506
4,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.27%, due July 18, 1996 3,990,046 3,990,046
2,110,000 Federal National Mortgage
Association Deb.,
8.45%, due October 21, 1996 2,129,441 2,129,441
4,000,000 Federal National Mortgage
Association Discount Notes,
5.19%, due September 3, 1996 3,963,093 3,963,093
1,000,000 Federal National Mortgage
Association Medium Term Notes,
5.64%, due October 2, 1996 1,000,374 1,000,374
2,500,000 Federal National Mortgage
Association Medium Term Notes,
5.68%, due October 7, 1996 2,500,741 2,500,741
45,110,000 44,961,151 44,961,151
TOTAL INVESTMENTS - 100.29% $ 331,287,799 331,287,799
Other assets less liabilities - (0.29%) (956,005)
TOTAL NET ASSETS - 100.00%
(equivalent to 1.00 per share;
1,500,000,000 shares of 0.01 par value
capital shares authorized;
330,361,477 shares outstanding) $ 330,331,794
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Net Assets
June 30, 1996
<TABLE>
<CAPTION>
Face Market
Amount Description Cost Value
<S> <C> <C>
FEDERAL PORTFOLIO
GOVERNMENT SPONSORED ENTERPRISES - 101.91%
1,500,000 Federal Farm Credit Banks,
5.30%, due August 1, 1996 $ 1,500,000 $ 1,500,000
3,000,000 Federal Farm Credit Banks,
4.95%, due March 3, 1997 2,996,245 2,996,245
2,300,000 Federal Farm Credit Banks
Discount Notes,
5.24%, due July 15, 1996 2,295,313 2,295,313
1,500,000 Federal Home Loan Bank,
8.25%, due September 25, 1996 1,509,788 1,509,788
15,000,000 Federal Home Loan Banks
Discount Notes,
5.24%, due July 3, 1996 14,995,633 14,995,633
10,000,000 Federal Home Loan Banks
Discount Notes,
5.23%, due July 8, 1996 9,989,831 9,989,831
5,000,000 Federal Home Loan Banks
Discount Notes,
5.24%, due July 9, 1996 4,994,178 4,994,178
2,500,000 Federal Home Loan Banks
Discount Notes,
5.26%, due January 7, 1997 2,430,597 2,430,597
2,500,000 Federal Home Loan Banks
Discount Notes,
5.27%, due July 29, 1996 2,489,753 2,489,753
7,500,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.23%, due July 1, 1996 7,500,000 7,500,000
5,500,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.24%, due July 1, 1996 5,500,000 5,500,000
3,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.25%, due July 1, 1996 3,000,000 3,000,000
1,600,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.24%, due July 8, 1996 1,598,370 1,598,370
15,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.26%, due July 8, 1996 14,984,658 14,984,658
5,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.28%, due July 11, 1996 4,992,667 4,992,667
6,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.24%, due July 15, 1996 5,987,773 5,987,773
5,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.27%, due July 15, 1996 4,989,753 4,989,753
3,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.17%, due July 16, 1996 2,993,538 2,993,538
5,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.27%, due July 18, 1996 4,987,557 4,987,557
3,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.28%, due July 19, 1996 2,992,080 2,992,080
27,000,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.29%, due July 24, 1996 26,908,748 26,908,748
3,180,000 Federal Home Loan Mortgage
Corporation Discount Notes,
5.205%, due July 29, 1996 3,167,126 3,167,126
3,000,000 Federal National Mortgage
Association Ser D Deb.,
8.00%, due July 10, 1996 3,001,751 3,001,751
12,500,000 Federal National Mortgage
Association Discount Notes,
5.24%, due July 3, 1996 12,496,361 12,496,361
10,000,000 Federal National Mortgage
Association Discount Notes,
5.23%, due July 5, 1996 9,994,189 9,994,189
12,500,000 Federal National Mortgage
Association Discount Notes,
5.24%, due July 8, 1996 12,487,264 12,487,264
2,000,000 Federal National Mortgage
Association Discount Notes,
5.325%, due July 10, 1996 1,997,375 1,997,375
7,400,000 Federal National Mortgage
Association Discount Notes,
5.27%, due July 11, 1996 7,389,167 7,389,167
20,000,000 Federal National Mortgage
Association Discount Notes,
5.25%, due July 15, 1996 19,959,167 19,959,167
15,000,000 Federal National Mortgage
Association Discount Notes,
5.27%, due July 18, 1996 14,962,671 14,962,671
5,000,000 Federal National Mortgage
Association Discount Notes,
5.28%, due July 26, 1996 4,981,667 4,981,667
7,500,000 Federal National Mortgage
Association Discount Notes,
5.30%, due August 27, 1996 7,437,062 7,437,062
GOVERNMENT SPONSORED ENTERPRISES (Continued)
2,500,000 Federal National Mortgage
Association Discount Notes,
5.19%, due September 3, 1996 2,476,933 2,476,933
1,000,000 Federal National Mortgage
Association Medium Term Notes,
5.64%, due October 2, 1996 1,000,374 1,000,374
1,000,000 Federal National Mortgage
Association Medium Term Notes,
5.68%, due October 7, 1996 1,000,296 1,000,296
32,480,000 231,987,885 231,987,885
TOTAL INVESTMENTS - 101.91% $ 231,987,885 $ 231,987,885
Other assets less liabilities - (1.91%) (4,347,592)
TOTAL NET ASSETS - 100.00%
(equivalent to 1.00 per share;
1,500,000,000 shares of 0.01 par value
capital shares authorized;
227,688,418 shares outstanding) $ 227,640,293
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 1996
<TABLE>
<CAPTION>
Prime Federal
Portfolio Portfolio
<S> <C> <C>
ASSETS:
Investment securities, at market value $ 331,287,799 $ 231,987,885
Interest receivable 329,825 236,387
Total assets 331,617,624 232,224,272
LIABILITIES AND NET ASSETS:
Disbursements in excess of demand deposit cash 1,267,409 4,566,280
Other liabilities 18,421 17,699
Total liabilities 1,285,830 4,583,979
NET ASSETS $ 330,331,794 $ 227,640,293
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 330,364,840 $ 227,689,078
Accumulated net realized loss on
investment transactions (33,046) (48,785)
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 330,331,794 $ 227,640,293
Capital shares, $0.01 par value
Authorized 1,500,000,000 1,500,000,000
Outstanding 330,361,477 227,688,418
NET ASSET VALUE PER SHARE $ 1.00 $ 1.00
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Operations
Year Ended June 30, 1996
<TABLE>
<CAPTION>
Prime Federal
Portfolio Portfolio
<S> <C> <C>
INVESTMENT INCOME:
Income:
Interest $ 17,787,772 $ 12,706,413
Expenses:
Management fees 1,573,156 1,134,559
Government fees 23,043 19,771
1,596,199 1,154,330
Net investment income 16,191,573 11,552,083
REALIZED LOSS ON INVESTMENTS:
Realized loss from investment transactions:
Proceeds from sales of investments 5,856,422,761 5,902,337,054
Cost of investments sold 5,856,422,761 5,902,337,054
Net realized loss from
investment transactions - -
Increase in net assets resulting from
operations $ 16,191,573 $ 11,552,083
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
For The Two Years Ended June 30, 1996
<TABLE>
<CAPTION>
Prime Federal
Portfolio Portfolio
<S> <C> <C>
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
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 16,191,573 $ 11,552,083
Net realized loss from investment transactions - -
Net increase in net assets resulting
from operations 16,191,573 11,552,083
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (16,191,573) (11,552,083)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ($1.00 per share) 740,092,127 534,279,487
Net asset value of shares issued for
reinvestment of distributions ($1.00 per share) 3,273,738 1,378,932
743,365,865 535,658,419
Cost of shares redeemed ($1.00 per share) (658,500,776) (490,689,727)
Net increase from capital share transactions 84,865,089 44,968,692
Total increase in net assets 84,865,089 44,968,692
NET ASSETS - June 30, 1995 245,466,705 182,671,601
NET ASSETS - June 30, 1996 $ 330,331,794 $ 227,640,293
</TABLE>
See accompanying Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SUMMARY OF 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 amortized 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, 1996, 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.
Amortization - Discounts and premiums on securities purchased are
amortized over the life of the respective securities.
Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amount
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
2. PURCHASES AND SALES OF SECURITIES - The aggregate amounts of
security transactions during the year ended June 30, 1996, were
as follows:
Other than
U.S. Government U.S. Government
Securities Securities
Prime Portfolio
Purchases $5,565,382,091 $ 363,587,534
Proceeds from sales 5,494,081,477 362,341,284
Federal Portfolio
Purchases $3,041,791,676 2,897,883,000
Proceeds from sales 3,021,909,054 2,880,428,000
3. MANAGEMENT FEES - UMB Bank, n.a. is the Fund's manager and
investment adviser and provides or pays the cost of all
management, supervisory and administrative services required in
the normal operation of the Fund. This includes investment
management; fees of the custodian, independent public accountants
and legal counsel; remuneration of officers and directors; rent;
and shareholder services, including maintenance of the
shareholders accounting system and transfer agency. Not
considered normal operating expenses and therefore payable by the
Fund are taxes, interest, fees and the other charges of
governments and their agencies for qualifying the fund's shares
for sale, special accounting and legal fees and brokerage
commissions. UMB Bank's management fees are based on average
daily net assets of the Fund at the annual rate of .50 of one
percent of net assets. Certain officers and/or directors of the
Fund are also officers and/or directors of Jones & Babson, Inc.,
which serves as the Fund's underwriter and distributor.
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, 1996:
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
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 0.05 0.03 0.03 0.04
Less distributions:
Dividends from net investment income (0.05) (0.05) (0.03) (0.03) (0.04)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 5% 5% 3% 3% 5%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 330 $ 245 $ 172 $ 214 $ 209
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 5.16% 5.10% 2.92% 2.87% 4.44%
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 0.05 0.03 0.03 0.04
Less distributions:
Dividends from net investment income (0.05) (0.05) (0.03) (0.03) (0.04)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 5% 5% 3% 3% 5%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 228 $ 183 $ 195 $ 271 $ 250
Ratio of expenses to average net assets 0.51% 0.51% 0.50% 0.50% 0.51%
Ratio of net investment income to average net assets 5.09% 4.97% 2.81% 2.81% 4.43%
</TABLE>
See accompanying Notes to Financial Statements.
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 of Scout Money Market Fund, Inc., including the
statement of net assets, as of June 30, 1996, and the related
statement of operations, statement of changes in net assets and
the financial highlights for the year then ended. These financial
statements and financial highlights are the responsibility of the
Company's management. Our responsibility is to express an opinion
on these financial statements and financial highlights based on
our audit. The statement of changes in net assets of the Fund for
the year ended June 30, 1995 and the financial highlights for
each of the four years ended June 30, 1995, were audited by other
auditors whose report dated August 4, 1995 expressed an
unqualified opinion on that statement and those financial
highlights.
We conducted our audit 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. Our procedures included verification of
securities owned as of June 30, 1996 by confirmation, or by the
application of alternative auditing procedures with respect to
unsettled portfolio security transactions. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation and the financial highlights. We
believe that our audit provides 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 Scout Money Market Fund, Inc. as of June
30, 1996, the results of its operations, the changes in its net
assets and the financial highlights for the year then ended, in
conformity with generally accepted accounting principles.
GEO. S. OLIVE & CO. LLC
Evansville, Indiana
September 9, 1996
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
Investment Counsel
UMB Bank, n.a., Kansas City, Missouri
Auditors
Geo. S. Olive & Co. LLC, Evansville, Indiana
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
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Scout Money Market Fund, Inc. - Prime Portfolio
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 331287799
<INVESTMENTS-AT-VALUE> 331287799
<RECEIVABLES> 329825
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 331617624
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Scout Money Market Fund, Inc. - Federal Portfolio
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