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, 1997
TO THE SHAREHOLDERS
Scout Money Market Fund's Federal Portfolio earned 4.98% for the fiscal year
ended June 30, 1997, while the Prime Portfolio earned 5.04%. The 7-day current
yield on June 30, 1997, was 4.96% for the Federal Portfolio and 5.10% for the
Prime Portfolio, respectively.
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.
Money markets spent the past year carefully watching the U.S. economy to gauge
the pace of growth and the potential for damaging inflation, all with an eye
toward anticipating possible Federal Reserve changes to interest rates.
Official data at times provided conflicting signals, prompting a wide-ranging
debate on the strength of the economy, direction of interest rates, and likely
yields across the maturity spectrum. After maintaining a hands-off approach in
the second half of 1996, the Fed took action in March 1997 with a 0.25-point
increase to 5.50% in the key Federal Funds rate.
As the second quarter of 1997 ended, these earlier fears of growing
inflationary pressure from a strong economy were put to rest by data showing
little inflation and modest economic growth. Based on this data, and to the
surprise of almost nobody, the Fed again chose not to raise the Fed Funds rate
at its July meeting. The economy probably will not change much between now and
the August 19 Fed meeting, so the general view is that a rate increase still
is unlikely. A much clearer economic picture will be possible by the end of
September. If it appears that consumer spending is rebounding from its
lackluster second-quarter performance, a rate hike by the Fed again will be a
definite possibility.
For most of the quarter, rates on money market instruments maturing in less
than one week were higher than on those with longer maturities. As a result of
this phenomenon, which is known as an inverted yield curve, it made sense to
invest in shorter maturities. By quarter's end, the Federal and Prime
portfolios had relatively short average maturities of 14 and 19 days,
respectively. Although the third quarter started with an inverted yield curve,
we do not believe it will continue. If that assessment proves correct, we will
be modestly lengthening the average maturities of both portfolios during
the quarter.
We appreciate your continued interest in Scout Money Market Fund, Inc., and we
welcome your comments and questions.
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, 1997
<TABLE>
<CAPTION>
Face Market
Amount Description Cost Value
</CAPTION>
<S> <C> <C>
PRIME PORTFOLIO
SHORT-TERM CORPORATE NOTES - 90.46%
$ 15,000,000 Abbott Laboratories,
5.47%, due July 23, 1997 $ 14,949,858 $ 14,949,858
15,000,000 American Tel. and Telegraph Co.,
6.05%, due July 1, 1997 15,000,000 15,000,000
5,000,000 Ameritech Capital Funding Corp.,
5.50%, due August 12, 1997 4,967,917 4,967,917
10,000,000 Archer-Daniels-Midland Co.,
5.50%, due July 22, 1997 9,967,917 9,967,917
10,000,000 Archer-Daniels-Midland Co.,
5.51%, due July 31, 1997 9,954,083 9,954,083
11,600,000 Atlantic Richfield Co.,
5.46%, due July 14, 1997 11,577,129 11,577,129
5,000,000 Avery Dennison Corp.,
6.22%, due July 1, 1997 5,000,000 5,000,000
4,994,000 BellSouth Telecommunications,
5.52%, due July 9, 1997 4,987,874 4,987,874
20,000,000 Campbell Soup Co.,
5.50%, due July 9, 1997 19,975,556 19,975,556
4,000,000 Disney, Walt, Co.,
5.57%, due July 3, 1997 3,998,762 3,998,762
8,000,000 Dover Corp.,
5.53%, due July 25, 1997 7,970,507 7,970,507
7,500,000 Dow Chemical Co.,
5.49%, due July 11, 1997 7,488,562 7,488,562
10,000,000 Duke Power Co.,
6.07%, due July 1, 1997 10,000,000 10,000,000
10,000,000 Duke Power Co., .
5.48%, due July 11, 1997 9,984,778 9,984,778
10,000,000 Dun & Bradstreet Corp.,
5.54%, due July 21, 1997 9,969,222 9,969,222
10,000,000 Dun & Bradstreet Corp.,
5.58%, due August 26, 1997 9,913,200 9,913,2000
20,000,000 Eastman Kodak Co.,
5.49%, due July 17, 1997 19,951,200 19,951,200
20,000,000 Gannett Co. Inc.,
5.50%, due July 7, 1997 19,981,668 19,981,668
5,000,000 General Mills, Inc.,
5.50%, due July 7, 1997 4,995,417 4,995,417,
5,000,000 Gillette Co.,
6.10%,due July 1, 1997 5,000,000 5,000,000
15,000,000 Gillette Co.,
5.48%, due July 25, 1997 14,945,200 14,945,200
6,000,000 Halliburton Co.,
5.57%, due August 19, 1997 5,954,512 5,954,512
2,500,000 Halliburton Co.,
5.60%, due August 21, 1997 2,480,167 2,480,167
2,000,000 Halliburton Co.,
5.63%, due August 21, 1997 1,984,048 1,984,048
3,000,000 Halliburton Co.,
5.56%, due August 26, 1997 2,974,053 2,974,053
4,000,000 Hershey Foods Corp.,
5.52%, due July 28, 1997 3,983,440 3,983,440
5,000,000 International Business Machines Corp.,
5.51%, due July 9, 1997 4,993,878 4,993,878
5,000,000 International Business Machines Corp.,
5.54%, due July 23, 1997 4,983,072 4,983,072
5,000,000 International Business Machines Corp.,
5.56%, due August 4, 1997 4,973,744 4,973,744
5,000,000 International Business Machines Corp.,
Medium Term Notes, 5.65%, due January 22, 1998 4,997,304 4,997,304
15,000,000 Kellogg Co.,
5.48%, due July 16, 1997 14,965,750 14,965,750
3,500,000 Laclede Gas Co.,
5.55%, due July 15, 1997 3,492,446 3,492,446
5,000,000 Laclede Gas Co.,
5.55%, due July 24, 1997 4,982,271 4,982,271
10,000,000 May Department Stores Co.,
5.52%, due July 1, 1997 10,000,000 10,000,000
2,147,000 Mobil Corp.,
6.25%, due July 1, 1997 2,147,000 2,147,000
5,000,000 Monsanto Co.,
5.54%, due August 18, 1997 4,963,067 4,963,067
5,000,000 Motorola Inc.,
5.52%, due July 2, 1997 4,999,233 4,999,233
7,000,000 Pactel Capital Resources Co.,
5.53%, due July 7, 1997 6,993,548 6,993,548
7,500,000 PepsiCo Inc.,
5.50%, due July 30, 1997 7,466,771 7,466,771
5,888,000 Philip Morris Cos. Inc., .
5.53%, due July 8, 1997 5,881,669 5,881,669
10,000,000 Philip Morris Cos. Inc.,
5.56%, due August 4, 1997 9,947,489 9,947,489
4,100,000 Progress Capital Holdings Inc.,
5.52%, due July 2, 1997 4,099,371 4,099,371
13,300,000 Progress Capital Holdings Inc.,
5.50%, due July 3, 1997 13,295,936 13,295,936
10,000,000 Snap on Tools Corp.,
5.53%, due July 11, 1997 9,984,639 9,984,639
1,630,000 Snap on Tools Corp.,
5.54%, due July 15, 1997 1,626,488 1,626,488
10,000,000 Weyerhauser Co.,
5.57%, due July 10, 1997 9,986,075 9,986,075
2,500,000 Weyerhauser Co.,
5.54%, due July 21, 1997 2,492,305 2,492,305
7,500,000 Weyerhauser Co.,
5.53%, due August 6, 1997 7,458,525 7,458,525
7,500,000 Xerox Corp.,
5.51%, due July 11, 1997 7,488,521 7,488,521
8,000,000 Xerox Corp.,
5.47%, due July 15, 1997 7,982,982 7,982,982
4,500,000 Xerox Corp.,
5.52%, due July 23, 1997 4,484,820 4,484,820
403,659,000 402,641,974 402,641,974
GOVERNMENT SPONSORED ENTERPRISES - 8.87%
$ 5,200,000 Federal Agricultural Mortgage Association
Discount Notes, 5.42%, due July 14, 1997 $ 5,189,822 $ 5,189,822
5,400,000 Federal Farm Credit Banks Discount Notes,
5.40%, due July 18, 1997 5,386,230 5,386,230
6,933,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.43%, due July 1, 1997 6,933,000 6,933,000
10,000,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.40%, due July 14, 1997 9,980,500 9,980,500
12,000,000 Federal Home Loan Mortgage Corporation
Discount Notes, 5.51%, due July 18, 1997 11,968,777 11,968,7773
39,533,000 39,458,329 39,458,329
REPURCHASE AGREEMENT - 1.17%
5,200,000 Lehman Tri-Party Repo., 5.92%, due July 1, 1997
(Collateralized by Federal Agricultural Mortgage
Association Note, due August 1, 2025) 5,200,000 5,200,000
TOTAL INVESTMENTS - 100.50% $ 447,300,303 447,300,303
Other assets less liabilities - (0.50%) (2,204,808)
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share; 1,500,000,000 shares
of 0.01 par value capital shares authorized; 445,125,179
shares outstanding) $ 445,095,495
See accompanying Notes to Financial Statements.
</TABLE>
FINANCIAL STATEMENTS
Statement of Net Assets
June 30, 1997
<TABLE>
<CAPTION>
Face Market
Amount Description Cost Value
</CAPTION>
<S> <C> <C>
FEDERAL PORTFOLIO
GOVERNMENT SPONSORED ENTERPRISES - 87.20%
$ 3,900,000 Federal Agricultural Mortgage Corporation
Discount Notes, 5.42%, due July 14, 1997 $ 3,892,367 $ 3,892,367
5,500,000 Federal Farm Credit Banks,
5.41%, due July 9, 1997 5,493,388 5,493,388
2,280,000 Federal Farm Credit Banks,
5.41%, due July 10, 1997 2,276,916 2,276,916
7,500,000 Federal Farm Credit Banks,
5.40%, due July 18, 1997 7,480,875 7,480,875
5,000,000 Federal Farm Credit Banks,
5.50%, due September 2, 1997 5,000,000 5,000,000
1,736,000 Federal Home Loan Banks Discount Note,
5.40%, due July 1, 1997 1,736,000 1,736,000
10,000,000 Federal Home Loan Banks Discount Note,
5.41%, due July 9, 1997 9,987,978 9,987,978
500,000 Federal Home Loan Banks Discount Notes,
5.42%, due July 10, 1997 499,322 499,322
2,500,000 Federal Home Loan Banks Discount Notes,
5.50%, due August 18, 1997 2,481,667 2,481,667
15,000,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.42%, due July 3, 1997 14,995,483 14,995,483
10,000,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.40%, due July 7, 1997 9,991,000 9,991,000
2,000,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.42%, due July 9, 1997 1,997,591 1,997,591
7,500,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.42%, due July 14, 1997 7,485,321 7,485,321
12,500,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.40%, due July 15, 1997 12,473,750 12,473,750
5,000,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.41%, due July 21, 1997 4,984,972 4,984,972
10,000,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.45%, due July 24, 1997 9,965,181 9,965,1812
12,500,000 Federal National Mortgage Association Discount Notes,
5.36%, due July 1, 1997 12,500,000 12,500,000
7,500,000 Federal National Mortgage Association Discount Notes,
5.42%, due July 2, 1997 7,498,871 7,498,871
7,455,000 Federal National Mortgage Association Discount Notes,
5.42%, due July 3, 1997 7,452,755 7,452,755
2,215,000 Federal National Mortgage Association Discount Notes,
5.41%, due July 7, 1997 2,213,003 2,213,003
3,460,000 Federal National Mortgage Association Discount Notes,
5.43%, due July 9, 1997 3,455,825 3,455,825
10,000,000 Federal National Mortgage Association Discount Notes,
5.36%, due July 10, 1997 9,986,600 9,986,600
1,000,000 Federal National Mortgage Association Discount Notes,
5.42%, due July 10, 1997 998,645 998,645
2,800,000 Federal National Mortgage Association Discount Notes,
5.41%, due July 11, 1997 2,795,792 2,795,792
15,000,000 Federal National Mortgage Association Discount Notes,
5.41%, due July 14, 1997 14,970,696 14,970,696
5,000,000 Federal National Mortgage Association Discount Notes,
5.51%, due July 18 1997 4,986,990 4,986,990
6,590,000 Federal National Mortgage Association Discount Notes,
5.41%, due July 23, 1997 6,568,213 6,568,213
2,000,000 Federal National Mortgage Association Discount Notes,
5.41%, due July 24, 1997 1,993,087 1,993,087
15,000,000 Federal National Mortgage Association Discount Notes,
5.42%, due July 24, 1997 14,948,058 14,948,058
1,765,000 Federal National Mortgage Association Discount Notes,
5.41%, due July 25, 1997 1,758,634 1,758,634
10,000,000 Federal National Mortgage Association Discount Notes,
5.42%, due July 25, 1997 9,963,867 9,963,867
5,000,000 Federal National Mortgage Association Discount Notes,
5.19%, due August 18, 1997 4,965,400 4,965,400
208,201,000 207,798,247 207,798,247
REPURCHASE AGREEMENT - 13.18%
$ 31,400,000 Lehman Tri-Party Repo., 5.92%, due July 1, 1997
(Collateralized by Federal Agricultural Mortgage
Association Notes, due May 1, 2025 and August 1, 2025) $ 31,400,000 $ 31,400,000
TOTAL INVESTMENTS - 100.38% $ 239,198,247 239,198,247
Other assets less liabilities - (0.38%) (897,513)
TOTAL NET ASSETS - 100.00%
(equivalent to 1.00 per share;
1,500,000,000 shares
of 0.01 par value capital shares authorized;
238,348,857 shares outstanding) $ 238,300,734
See accompanying Notes to Financial Statements.
</TABLE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 1997
<TABLE>
<CAPTION>
Prime Federal
Portfolio Portfolio
</CAPTION>
<S> <C> <C>
ASSETS:
Investment securities, at market value $ 447,300,303 $ 239,198,247
Interest receivable 125,717 26,835
Total assets 447,426,020 239,225,082
LIABILITIES:
Disbursements in excess of demand deposit cash 2,330,525 924,348
Total liabilities 2,330,525 924,348
NET ASSETS $ 445,095,495 $ 238,300,734
NET ASSETS CONSIST OF:C
Capital (capital stock and paid-in capital) $ 445,128,541 $ 238,349,519
Accumulated net realized loss on investment transactions (33,046) (48,785)
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 445,095,495 $ 238,300,734
Capital shares, $0.01 par value
Authorized 1,500,000,000 1,500,000,000
Outstanding 445,125,179 238,348,857
NET ASSET VALUE PER SHARE $ 1.00 $ 1.00
See accompanying Notes to Financial Statements.
</TABLE>
FINANCIAL STATEMENTS
Statement of Operations
Year Ended June 30, 1997
<TABLE>
<CAPTION> Prime Federal
Portfolio Portfolio
</CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Interest $ 21,905,714 $ 14,170,279
Expenses:
Management fees 2,007,320 1,319,613
Government fees 38,932 25,203
2,046,252 1,344,816
Net investment income 19,859,462 12,825,463
REALIZED GAIN ON INVESTMENTS:
Realized gain from investment transactions:
Proceeds from sales of investments 6,717,119,728 5,689,338,091
Cost of investments sold 6,717,119,728 5,689,338,091
Net realized gain from investment transactions - -
Net increase in net assets resulting from operations $ 19,859,462 $ 12,825,463
See accompanying Notes to Financial Statements.
</TABLE>
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
For The Years Ended June 30, 1997 and 1996
<TABLE>
<CAPTION>
Prime Federal
Portfolio Portfolio
1996 1996
</CAPTION>
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 16,191,573 $ 11,552,083
Net realized gain 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 in net assets from capital share transactions 84,865,089 44,968,692
Net 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
INCREASE IN NET ASSETS FROM OPERATIONS: 1997 1997
Net investment income $ 19,859,462 $ 12,825,463
Net realized gain from investment transactions - -
Net increase in net assets resulting from operations 19,859,462 12,825,463
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (19,859,462) (12,825,463)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ($1.00 per share) 875,930,207 663,539,591
Net asset value of shares issued for reinvestment
of distributions ($1.00 per share) 4,024,175 1,702,241
879,954,382 665,241,832
Cost of shares redeemed ($1.00 per share) (765,190,681) (654,581,391)
Net increase in net assets from capital share transactions 114,763,701 10,660,441
Net increase in net assets 114,763,701 10,660,441
NET ASSETS - June 30, 1996 330,331,794 227,640,293
NET ASSETS - June 30, 1997 $ 445,095,495 $ 238,300,734
See accompanying Notes to Financial Statements.
</TABLE>
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. The policies are in conformity with generally accepted accounting
principles
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 Income Taxes - The Fund's policy is to comply with the requirements
of the Internal Revenue Code that are applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. At June 30, 1997, 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 thereported 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, 1997, were as follows:
Other than
U.S. Government U.S. Government
Prime Portfolio Securities Securities
Purchases $ 5,865,395,304 $ 946,531,353
Proceeds from sales 5,784,695,959 932,423,769
Federal Portfolio
Purchases $ 678,902,258 $ 5,004,125,221
Proceeds from sales 645,499,867 5,043,838,224
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 shareholder 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.
4. REPURCHASE AGREEMENTS - Securities purchased under agreements to resell
are held by the Fund's custodian and investment counsel, UMB Bank, n.a. The
custodian monitors the market values of the underlying securities which they
have purchased on behalf of the Fund to ensure that the collateral is
sufficient to protect the Fund in the event of default by the seller.
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, 1997:
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993
</CAPTION>
<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 0.05 0.03 0.03
Distributions from:
Net investment income (0.05) (0.05) (0.05) (0.03) (0.03)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 5% 5% 5% 3% 3%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 445 $ 330 $ 245 $ 172 $ 214
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 4.97% 5.16% 5.10% 2.92% 2.87%
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 0.05 0.03 0.03
Distributions from:
Net investment income (0.05) (0.05) (0.05) (0.03) (0.03)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 5% 5% 5% 3% 3%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 238 $ 228 $ 183 $ 195 $ 271
Ratio of expenses to average net assets 0.52% 0.51% 0.51% 0.50% 0.50%
Ratio of net investment income to average net assets 4.92% 5.09% 4.97% 2.81% 2.81%
See accompanying Notes to Financial Statements.
</TABLE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
aTo 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,
1997, and the related statement of operations, statement of changes in net
assets and the financial highlights for the most recent period presented
(prior periods presented were audited by other independent accountants whose
reports thereon expressed unqualified opinions). 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.
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, 1997, 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. 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, 1997, 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.
BAIRD KURTZ & DOBSON
Kansas City, Missouri
July 22, 1997
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
Elizabeth L. Allwood, Vice President
Michael A. Brummel, Vice President
Martin A. Cramer, Vice President & Secretary
John G. Dyer, Vice President
Constance E. Martin, Vice President
Investment Counsel
UMB Bank, n.a., Kansas City, Missouri
Auditors
Baird, Kurtz & Dobson, 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
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>
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