SCOUT
MONEY MARKET
FUND
A no-load mutual fund
with primary emphasis
on maximum income
consistent with safety
of principal and
maintenance of liquidity.
Semiannual Report
December 31, 1997
TO THE SHAREHOLDERS
Scout Money Market Fund's Federal Portfolio earned 1.29% for the quarter
ended December 31, 1997, while the Prime Portfolio earned 1.30%. The 7-
day current yield on December 31, 1997, was 5.29% for the Federal Portfolio
and 5.35% 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.
The portfolios' 7-day yields reflect normal year-end volatility which
produces abnormally high yields. During the last 12 trading days of the
year, we traded U.S. Agency discount notes as high as 5.90% and
commercial paper at 6.50%. Repurchase agreements, which are secured by
U.S. Agency issues, also traded at 6.50%.
For the calendar year ended December 31, 1997, the Federal Portfolio
earned 5.09% and the Prime Portfolio earned 5.17%. The calendar year
returns for both portfolios exceeded the Lipper Money Market Fund Index
return of 4.71% by wide margins.
Money market rates varied little for the first six weeks of the quarter.
Rates began to move higher in mid-November, and by mid-December the 30-
day commercial paper reached levels not seen since December 1995. Since
year end, the market has reversed course and rates have dropped
substantially, spurred by a "flight to quality" following the chaos in
Asian markets. Fed Funds opened the new year trading around 5.375%,
which is below the official rate of 5.50%.
The market is clearly anticipating an interest rate easing by the
Federal Reserve. In our view, it is much too early to anticipate such an
action since official data continue to show strength in the U.S.
economy. If the current low-rate environment holds, it will only add to
that strength. Given these uncertainties, we will maintain a moderate
average maturity in the Fund and, as always, will continue to use only
the highest quality issuers.
We appreciate your continued interest in Scout Money Market Fund and we
welcome your comments and questions.
Sincerely,
/s/William A. Faust
William A. Faust
UMB Investment Advisors
Pie Chart - SECTOR DIVERSIFICATION
Federal Portfolio
Agency Discount Notes 91%
Repurchase Agreement 9%
Pie Chart - SECTOR DIVERSIFICATION
Prime Portfolio
Commercial Paper 93%
Agency Discount Notes 6%
Repurchase Agreement 1%
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 ("FDIC").
These shares involve investment risks, including the possible loss of
the principal invested.
FINANCIAL STATEMENTS
Statement of Net Assets
December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Market
Amount Description Value
</CAPTION>
<S> <C>
PRIME PORTFOLIO
SHORT-TERM CORPORATE NOTES - 92.74%
$ 9,980,000 Abbott Laboratories,
6.00%, due January 13, 1998 $ 9,960,040
7,500,000 AIG Capital Funding Inc.,
5.60%, due January 6, 1998 7,494,167
5,000,000 Air Products & Chemicals,
5.85%, due January 23, 1998 4,982,125
2,000,000 American Greetings Co.,
5.92%, due January 12, 1998 1,996,382
3,000,000 American Greetings Co.,
6.05%, due January 13, 1998 2,993,950
2,000,000 American Greetings Co.,
5.92%, due January 16, 1998 1,995,067
11,000,000 Ameritech Corp.,
5.85%, due January 29, 1998 10,949,950
14,000,000 Ameritech Capital Funding Corp.,
5.85%, due January 28, 1998 13,938,575
5,000,000 Archer-Daniels-Midland Co.,
5.56%, due January 21, 1998 4,984,556
2,565,000 Archer-Daniels-Midland Co.,
5.57%, due January 21, 1998 2,557,063
1,764,000 Archer-Daniels-Midland Co.,
5.65%, due January 26, 1998 1,757,079
17,500,000 American Tel. & Telegraph,
5.70%, due January 20, 1998 17,447,354
7,500,000 American Tel. & Telegraph,
5.73%, due January 22, 1998 7,474,931
5,000,000 Atlantic Richfield Co.,
5.54%, due January 7, 1998 4,995,383
10,000,000 Atlantic Richfield Co.,
5.76%, due January 21, 1998 9,968,000
17,000,000 BP America,
6.35%, due January 2, 1998 16,997,001
8,025,000 Bell Atlantic Network Funding,
6.20%, due January 5, 1998 8,019,472
12,500,000 BellSouth Telecommunications,
5.75%, due January 23, 1998 12,456,076
9,000,000 BellSouth Telecommunications,
5.73%, due January 28, 1998 8,961,322
5,200,000 California Pollution Control Rev.,
5.75%, due January 5, 1998 5,200,000
12,000,000 Disney Walt Co.,
5.70%, due January 2, 1998 11,998,100
7,000,000 Disney Walt Co.,
5.70%, due January 5, 1998 6,995,567
4,124,000 Disney Walt Co.,
5.70%, due January 16, 1998 4,114,206
2,500,000 Dover Corp.,
5.78%, due January 9, 1998 2,496,789
7,500,000 Dover Corp.,
5.78%, due January 12, 1998 7,486,754
5,100,000 Dow Chemical Co.,
5.75%, due January 5, 1998 5,096,742
10,000,000 Dow Chemical Co.,
5.73%, due January 8, 1998 9,988,858
7,500,000 Dow Chemical Co.,
5.77%, due January 12, 1998 7,486,777
5,000,000 Duke Energy Co.,
5.64%, due January 14, 1998 4,989,817
7,000,000 Duke Energy Co.,
5.65%, due January 16, 1998 6,983,521
5,000,000 Duke Energy Co.,
5.70%, due February 5, 1998 4,972,292
5,000,000 Dun & Bradstreet Corp.,
5.85%, due January 12, 1998 4,991,062
7,500,000 Dun & Bradstreet Corp.,
5.65%, due January 13, 1998 7,485,875
2,400,000 Dun & Bradstreet Corp.,
5.80%, due January 21, 1998 2,392,267
5,900,000 Dun & Bradstreet Corp.,
6.00%, due January 21, 1998 5,880,333
12,500,000 duPont (E.I.) deNemours & Co.,
5.70%, due Janaury 15, 1998 12,472,292
4,100,000 duPont (E.I.) deNemours & Co.,
5.75%, due January 20, 1998 4,087,558
8,000,000 duPont (E.I.) deNemours & Co.,
5.80%, due January 26, 1998 7,967,778
12,500,000 Eastman Kodak Co.,
6.00%, due January 6, 1998 12,489,583
7,500,000 Gannett Inc.,
5.54%, due January 7, 1998 7,493,075
12,500,000 Gannett Inc.,
5.63%, due January 9, 1998 12,484,361
9,484,000 General Re Corp.,
5.75%, due February 4, 1998 9,432,497
5,000,000 Heinz H. J. Co.,
5.57%, due January 2, 1998 4,999,226
1,000,000 Heinz H. J. Co.,
5.60%, due January 2, 1998 999,844
5,000,000 Heinz H. J. Co.,
5.73%, due January 15, 1998 4,988,858
4,500,000 Heinz H. J. Co.,
5.78%, due January 20, 1998 4,486,272
7,500,000 Heinz H. J. Co.,
5.83%, due January 26, 1998 7,469,635
2,000,000 Hershey Foods Corp.,
5.85%, due January 9, 1998 1,997,400
3,500,000 Hershey Foods Corp.,
5.82%, due January 14, 1998 3,492,644
2,200,000 Hershey Foods Corp.,
5.70%, due January 23, 1998 2,192,337
4,275,000 Hewlett Packard Co.,
5.72%, due January 5, 1998 4,272,283
1,000,000 Hewlett Packard Co.,
5.90%, due January 6, 1998 999,181
5,000,000 Hewlett Packard Co.,
5.95%, due January 21, 1998 4,983,472
3,250,000 International Business Machines Corp.,
5.76%, due January 13, 1998 3,243,760
5,000,000 International Business Machines Corp.,
Medium Term Notes,
5.65%, due January 22, 1998 4,999,724
5,000,000 Kellogg Co.,
5.70%, due January 8, 1998 4,994,458
2,800,000 Kellogg Co.,
5.75%, due January 27, 1998 2,788,372
10,000,000 Laclede Gas Co.,
6.40%, due January 6, 1998 9,991,111
3,000,000 Laclede Gas Co.,
5.62%, due January 8, 1998 2,996,722
3,000,000 Laclede Gas Co.,
5.73%, due January 16, 1998 2,992,838
4,000,000 Laclede Gas Co.,
5.70%, due January 21, 1998 3,987,333
3,110,000 Laclede Gas Co.,
5.70%, due January 23, 1998 3,099,167
2,100,000 Laclede Gas Co.,
5.77%, due January 28, 1998 2,090,912
7,000,000 Monsanto Co.,
5.80%, due January 8, 1998 6,992,106
6,400,000 Monsanto Co.,
5.85%, due January 9, 1998 6,391,680
8,000,000 Monsanto Co.,
5.78%, due January 16, 1998 7,980,733
12,500,000 Proctor & Gamble Co.,
5.57%, due January 5, 1998 12,492,264
12,500,000 Proctor & Gamble Co.,
5.65%, due January 14, 1998 12,474,497
14,000,000 Progress Capital Holdings Inc.,
5.75%, due January 6, 1998 13,988,819
3,000,000 Progress Capital Holdings Inc.,
5.84%, due January 16, 1998 2,992,700
8,000,000 Progress Capital Holdings Inc.,
5.89%, due January 22, 1998 7,972,513
10,500,000 Snap On Inc.,
5.81%, due January 20, 1998 10,467,803
5,000,000 Snap On Inc.,
5.88%, due January 22, 1998 4,982,850
3,400,000 South Carolina Electric Gas,
5.82%, due January 30, 1998 3,384,060
8,900,000 South Carolina Electric Gas,
5.83%, due January 30, 1998 8,858,202
5,000,000 Warner Lambert Co.,
5.73%, due January 13, 1998 4,990,450
10,000,000 Xerox Overseas Holding PLC,
5.65%, due January 7, 1998 9,990,583
4,523,000 Xerox Overseas Holding PLC,
5.90%, due January 13, 1998 4,514,105
516,600,000 515,453,511
GOVERNMENT SPONSORED ENTERPRISES - 5.83%
5,000,000 Federal Farm Credit Banks
Discount Notes,
5.50%, due January 2, 1998 5,000,000
5,000,000 Federal Farm Credit Banks
Discount Notes,
5.55%, due March 2, 1998 5,000,000
3,000,000 Federal Home Loan Mortgage Corp.
Discount Notes,
5.67%, due January 7, 1998 2,997,165
1,800,000 Federal Home Loan Mortgage Corp.
Discount Notes,
5.70%, due January 7, 1998 1,798,290
6,000,000 Federal Home Loan Mortgage Corp.
Discount Notes,
5.75%, due January 26, 1998 5,976,042
1,150,000 Federal Home Loan Mortgage Corp.
Discount Notes,
5.50%, due February 13, 1998 1,142,445
3,000,000 Federal National Mortgage Association
Discount Notes,
5.70%, due January 5, 1998 2,998,100
2,500,000 Federal National Mortgage Association
Discount Notes,
5.74%, due January 23, 1998 2,491,231
5,000,000 Federal National Mortgage Association
Discount Notes,
5.75%, due January 30, 1998 4,976,840
32,450,000 32,380,113
REPURCHASE AGREEMENT -- 1.91%
10,625,000 Lehman Tri-Party Repo.,
6.50%, due January 2, 1998
(Collateralized by Federal Home Loan
Mortgage Corp., due January 15, 2025) 10,625,000
TOTAL INVESTMENTS - 100.48% $ 558,458,624
Other assets less liabilities - (0.48%) (2,641,192)
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share;
750,000,000 shares of $0.01 par value
capital shares authorized;
555,846,757 shares outstanding) $ 555,817,432
</TABLE>
See accompanying Notes to Financial Statements.
Statement of Net Assets
December 31, 1997 (unaudited)
FEDERAL PORTFOLIO
<TABLE>
<CAPTION>
Principal Market
Amount Description Value
</CAPTION>
<S> <C>
GOVERNMENT SPONSORED ENTERPRISES - 91.27%
$ 10,000,000 Federal Agricultural Mortgage Corp.,
5.73%, due January 15 1998 $ 9,977,718
15,000,000 Federal Agricultural Mortgage Corp.,
5.73%, due January 20, 1998 14,954,637
1,900,000 Federal Agricultural Mortgage Corp.,
5.90%, due January 20, 1998 1,894,083
5,000,000 Federal Agricultural Mortgage Corp.,
5.75%, due January 23, 1998 4,982,431
15,000,000 Federal Agricultural Mortgage Corp.,
5.73%, due January 26, 1998 14,940,313
2,500,000 Federal Farm Credit Banks,
5.50%, due January 2, 1998 2,500,000
1,740,000 Federal Farm Credit Banks,
5.72%, due January 2, 1998 1,739,724
5,000,000 Federal Farm Credit Banks,
5.58%, due January 12, 1998 4,991,475
2,500,000 Federal Farm Credit Banks,
5.55%, due March 2, 1998 2,500,000
7,500,000 Federal Home Loan Banks Discount Note,
5.39%, due January 9, 1998 7,491,017
2,500,000 Federal Home Loan Banks Discount Note,
5.475%, due January 9, 1998 2,496,958
3,000,000 Federal Home Loan Banks Discount Note,
5.52%, due January 9, 1998 2,996,320
7,500,000 Federal Home Loan Banks Discount Note,
5.79%, due January 21, 1998 7,475,875
2,935,000 Federal Home Loan Banks Discount Note,
5.79%, due January 23, 1998 2,924,615
1,096,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.70%, due January 2, 1998 1,095,826
10,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.72%, due January 2, 1998 9,998,411
4,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.61%, due January 9, 1998 4,494,390
15,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.72%, due January 9, 1998 14,980,933
5,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.73%, due January 9, 1998 4,993,633
10,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.68%, due January 14, 1998 9,979,489
2,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.70%, due January 14, 1998 2,494,854
7,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.72%, due January 14, 1998 7,484,508
8,042,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.52%, due January 15, 1998 8,024,737
1,810,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.70%, due January 15, 1998 1,805,988
17,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.71%, due January 20, 1998 17,447,262
2,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.55%, due January 23, 1998 2,491,521
5,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.76%, due January 23, 1998 4,982,400
1,900,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.70%, due January 30, 1998 1,891,276
5,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.49%, due February 13, 1998 4,967,212
2,650,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.50%, due February 13, 1998 2,632,591
17,000,000 Federal National Mortgage Association
Discount Notes,
5.48%, due January 5, 1998 16,989,649
1,000,000 Federal National Mortgage Association
Discount Notes,
5.50%, due January 5, 1998 999,389
10,250,000 Federal National Mortgage Association
Discount Notes,
5.70%, due January 5, 1998 10,243,508
7,500,000 Federal National Mortgage Association
Discount Notes,
5.67%, due January 7, 1998 7,492,912
3,389,000 Federal National Mortgage Association
Discount Notes,
5.68%, due January 8, 1998 3,385,257
3,819,000 Federal National Mortgage Association
Discount Notes,
5.70%, due January 8, 1998 3,814,767
10,500,000 Federal National Mortgage Association
Discount Notes,
5.73%, due January 8, 1998 10,488,301
5,000,000 Federal National Mortgage Association
Discount Notes,
5.48%, due January 12, 1998 4,991,628
2,500,000 Federal National Mortgage Association
Discount Notes,
5.72%, due January 14, 1998 2,494,836
1,000,000 Federal National Mortgage Association
Discount Notes,
5.68%, due January 15, 1998 997,791
1,850,000 Federal National Mortgage Association
Discount Notes,
5.48%, due January 16, 1998 1,845,776
2,100,000 Federal National Mortgage Association
Discount Notes,
5.50%, due January 16, 1998 2,095,188
12,050,000 Federal National Mortgage Association
Discount Notes,
5.71%, due January 16, 1998 12,021,331
2,000,000 Federal National Mortgage Association
Discount Notes,
5.78%, due January 16, 1998 1,995,183
2,950,000 Federal National Mortgage Association
Discount Notes,
5.50%, due January 21, 1998 2,940,986
2,500,000 Federal National Mortgage Association
Discount Notes,
5.70%, due January 21, 1998 2,492,083
1,000,000 Federal National Mortgage Association
Discount Notes,
5.50%, due January 22, 1998 996,792
1,990,000 Federal National Mortgage Association
Discount Notes,
5.79%, due January 22, 1998 1,983,279
3,500,000 Federal National Mortgage Association
Discount Notes,
5.74%, due January 23, 1998 3,487,723
1,208,000 Federal National Mortgage Association
Discount Notes,
5.75%, due January 23, 1998 1,203,755
10,000,000 Federal National Mortgage Association
Discount Notes,
5.75%, due January 29, 1998 9,955,278
5,000,000 Federal National Mortgage Association
Discount Notes,
5.475%, due February 5, 1998 4,973,385
290,179,000 289,518,994
REPURCHASE AGREEMENT - 9.28%
29,450,000 Lehman Tri-Party Repo.,
6.50%, due January 2, 1998
(Collateralized by Federal National
Mortgage Association, due July 1, 2026) 29,450,000
TOTAL INVESTMENTS - 100.55% $ 318,968,994
Other assets less liabilities - (0.55%) (1,739,858)
TOTAL NET ASSETS - 100.00%
(equivalent ot $1.00 per share;
750,000,000 shares of $0.01 par value
capital shares authorized;
317,277,259 shares outstanding) $ 317,229,136
</TABLE>
See accompanying Notes to Financial Statements.
Statement of Assets and Liabilities
December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Prime Federal
Portfolio Portfolio
</CAPTION>
<S> <C> <C>
ASSETS:
Investment securities, at market value $ 558,458,624 $ 318,968,994
Cash (2,909,668) (1,799,202)
Interest receivable 256,254 51,648
Total assets 555,805,210 317,221,440
LIABILITIES AND NET ASSETS:
Securities purchased payable - -
Accrued management fee expense (12,276) (7,829)
Income payable 54 133
Total liabilities 12,222 (7,696)
NET ASSETS $ 555,817,432 $ 317,229,136
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in surplus of capital) $ 555,850,479 $ 317,277,921
Accumulated net realized loss on investment transactions (33,047) (48,785)
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 555,817,432 $ 317,229,136
Capital shares, $1.00 par value
Authorized 750,000,000 750,000,000
Outstanding 555,846,757 317,277,259
NET ASSET VALUE PER SHARE $ 1.00 $ 1.00
</TABLE>
See accompanying Notes to Financial Statements.
Statement of Operations
Six Months Ended December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Prime Federal
Portfolio Portfolio
</CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Interest $ 14,348,082 $ 7,774,838
Expenses:
Management fees (Note 3) 1,268,548 694,918
Registration fees and other expenses 22,149 11,900
1,290,697 706,818
Net investment income 13,057,385 7,068,020
REALIZED GAIN (LOSS) ON INVESTMENTS (Note 1):
Realized gain (loss) from investment transactions:
Proceeds from sales of investments 5,678,006,819 4,389,794,901
Cost of investments sold 5,678,006,819 4,389,794,901
Net realized gain from investment transactions - -
Increase in net assets resulting from operations $ 13,057,385 $ 7,068,020
</TABLE>
See accompanying Notes to Financial Statements.
Statements of Changes in Net Assets
Six Months Ended December 31, 1997 (unaudited) and
Year Ended June 30, 1997
<TABLE>
<CAPTION>
Prime Federal
Portfolio Portfolio
</CAPTION>
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 13,057,385 $ 7,068,020
Net realized loss from investment activities - -
Net increase in net assets resulting from operations 13,057,385 7,068,020
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (13,057,385) (7,068,020)
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ($1.00 per share) 471,190,204 343,179,698
Net asset value of shares issued for reinvestment of
distributions ($1.00 per share) 2,524,626 1,137,896
473,714,830 344,317,594
Cost of shares redeemed ($1.00 per share) (362,992,893) (265,389,192)
Net increase from capital share transactions 110,721,937 78,928,402
Total increase (decrease) in net assets 110,721,937 78,928,402
NET ASSETS - June 30, 1997 445,095,495 238,300,734
NET ASSETS - December 31, 1997 $ 555,817,432 $ 317,229,136
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 19,859,462 $ 12,825,463
Net realized loss from investment activities - -
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) 875,930,270 663,539,591
Net asset value of shares issued for reinvestment of
distributions ($1.00 per share) 4,024,175 1,702,241
879,954,445 665,241,832
Cost of shares redeemed ($1.00 per share) (765,190,681) (654,581,391)
Net increase from capital share transactions 114,763,701 10,660,441
Total 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
</TABLE>
See accompanying 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 December 31, 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 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 six months ended December 31, 1997,
were as follows:
Other than
U.S. Government U.S. Government
Prime Portfolio Securities Securities
Purchases $ 5,655,912,714 $ 133,378,286
Proceeds from sales 5,514,199,000 163,807,819
Federal Portfolio
Purchases $ 2,236,223,000 $ 2,153,571,901
Proceeds from sales 2,319,223,000 2,070,571,901
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.
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
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
www.umb.com
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000704773
<NAME> SCOUT MONEY MARKET FUND INC
<SERIES>
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