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, 1998
TO THE SHAREHOLDERS
Scout Money Market Fund's Federal Portfolio earned 1.26% for the quarter
ended June 30, 1998, while the Prime Portfolio earned 1.28%. The 7-day
current yield on June 30 was 5.06% for the Federal Portfolio and 5.11%
for the for the Prime Portfolio. The Fund invests in high-quality short-
term debt instruments and seeks maximum income consistent with safety of
principal and liquidity.
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.
Overnight money market rates began the quarter well above the Fed Funds
target rate of 5.50%, then drifted lower for several weeks and bottomed
on May 6 around 5.15%. Rates gradually moved back toward the Fed Funds
rate during the remainder of the quarter, then showed the usual short-
term spike at quarter's end which sent overnight rates above 6.00%.
The broad market appears to be positioning for lower interest rates, but
recent economic reports still do not clearly indicate a move by the
policy-making Federal Open Market Committee (FOMC) in either direction.
In fact, the FOMC has maintained a bias toward increasing the Fed Funds
rate. Given such uncertainty, we will maintain our moderate average
maturity and continue to use only the highest quality issues.
We appreciate your continued interest in the Scout Money Market Fund 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 ("FDIC").
These shares involve investment risks, including the possible loss of
the principal amount invested.
CHART - FUND DIVERSIFICATION
Prime Portfolio
Commerical Paper 98.9%
Repos 0.3%
Gov't/Agency 0.8%
As of June 30, 1998, statement of assets.
CHART - FUND DIVERSIFICATION
Federal Portfolio
Agencies 89%
Repos 11%
Gov't/Agency 0.8%
As of June 30, 1998, statement of assets.
FINANCIAL STATEMENTS
Statement of Net Assets
June 30, 1998
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 1998
<TABLE>
<CAPTION>
Face Market
Amount Description Value
PRIME PORTFOLIO
SHORT-TERM CORPORATE NOTES - 99.26%
</CAPTION>
<S> <C>
$ 7,500,000 Abbott Laboratories, 5.49%, due July 1, 1998 $ 7,500,000
2,500,000 Air Products & Chemicals Co., 5.50%, due September 30, 1998 2,465,243
15,000,000 Aluminum Company of America, 5.53%, due July 24, 1998 14,947,004
3,434,000 Ameritech Capital Funding Corp., 5.52%, due July 10, 1998 3,429,261
8,500,000 Amgen, Inc., 5.54%, due July 7, 1998 8,492,152
17,500,000 Amgen, Inc., 5.53%, due July 14 1998 17,465,054
1,800,000 Anheuser-Busch Cos., 5.53%, due July 10,1998 1,797,512
17,200,000 Archer-Daniels-Midland Co., 5.53%, due July 17, 1998 17,157,726
7,364,000 Atlantic Richfield Co., 5.65%, due July 8, 1998 7,355,909
17,000,000 Atlantic Richfield Co., 5.55%, due July 23, 1998 16,942,342
20,000,000 Becton Dickenson, 5.53%, due July 20, 1998 19,941,628
3,206,000 Becton Dickenson, 5.54%, due July 23, 1998 3,195,146
16,100,000 Bell Atlantic Network Funding, 5.50%, due July 1, 1998 16,100,000
6,260,000 Bell Atlantic Network Funding, 5.50%, due July 7, 1998 6,254,262
4,226,000 Bell Atlantic Network Funding, 5.53%, due July 13, 1998 4,218,210
12,000,000 BellSouth Telecommunications, 5.48%, due July 22 1998 11,961,640
5,240,000 California Pollution Control, 5.64%, due July 13, 1998 5,240,000
5,000,000 Campbell Soup Co., 5.50%, due July 27, 1998 4,980,139
2,400,000 Coca Cola Co., 5.57%, due July 24, 1998 2,391,459
8,000,000 Deere & Co., 5.52%, due July 21, 1998 7,975,467
15,000,000 Disney (Walt) Co., 6.05%, due July 1, 1998 15,000,000
23,343,000 Dover Corp., 5.50%, due July 10, 1998 23,310,903
2,500,000 Dover Corp., 5.52%, due July 13, 1998 2,495,400
2,500,000 Dresser Industries, Inc., 5.55%, due July 14, 1998 2,494,990
1,000,000 Dresser Industries, Inc., 5.57%, due July 17, 1998 997,525
15,000,000 Duke Energy Corp., 5.48%, due July 8, 1998 14,984,017
7,900,000 Duke Energy Corp., 5.50%, due July 27, 1998 7,868,619
7,630,000 duPont E I deNemours & Co., 5.50% due July 9, 1998 7,620,675
5,000,000 duPont E I deNemours & Co., 5.56% due July 16, 1998 4,988,417
3,500,000 duPont E I deNemours & Co., 5.52% due July 17, 1998 3,491,413
7,000,000 duPont E I deNemours & Co., 5.52% due July 22 1998 6,977,460
7,500,000 Eastman Kodak Co., 5.50%, due July 7, 1998 7,493,125
2,800,000 Eastman Kodak Co., 5.51%, due July 17, 1998 2,793,143
3,000,000 Eastman Kodak Co., 5.51%, due July 23, 1998 2,989,898
5,000,000 Emerson Electric Co., 6.00%, due July 1, 1998 5,000,000
7,500,000 Gannett Co. Inc., 5.50%, due July 14, 1998 7,485,104
4,050,000 General Mills Inc., 6.10%, due July 1, 1998 4,050,000
10,000,000 General Mills Inc., 5.50%, due July 8, 1998 9,989,306
5,000,000 General Re Corp., 5.49%, due July 7, 1998 4,995,425
8,000,000 General Re Corp., 5.55%, due July 24, 1998 7,971,633
6,500,000 General Re Corp., 5.50%, due August 10, 1998 6,460,278
5,237,000 General Re Corp., 5.50%, due August 19, 1998 5,197,795
6,400,000 Heinz Co., 5.50%, due July 7, 1998 6,394,133
2,370,000 Heinz Co., 5.50%, due July 9, 1998 2,367,103
2,500,000 Heinz Co., 5.51%, due July 14, 1998 2,495,026
4,630,000 Heinz Co., 5.50%, due July 20, 1998 4,616,560
7,300,000 Kellogg Co., 5.51%, due July 15, 1998 7,284,356
10,000,000 Kellogg Co., 5.51%, due July 16, 1998 9,977,042
7,500,000 Laclede Gas Co., 5.54%, due July 13, 1998 7,486,150
1,500,000 Laclede Gas Co., 5.55%, due July 17, 1998 1,496,300
6,000,000 Laclede Gas Co., 5.60%, due July 27, 1998 5,975,733
10,000,000 Lucent Technologies, Inc., 5.52%, due July 2, 1998 9,998,467
8,800,000 Lucent Technologies, Inc., 5.52%, due July 28, 1998 8,763,568
15,000,000 Merck & Co., 6.00%, due July 1, 1998 15,000,000
3,800,000 Monsanto Co., 5.50%, due July 6, 1998 3,797,097
2,100,000 Monsanto Co., 5.49%, due July 7, 1998 2,098,079
2,000,000 Monsanto Co., 5.50%, due July 9, 1998 1,997,556
5,000,000 Monsanto Co., 5.51%, due July 27, 1998 4,980,103
1,990,000 Motorola Inc., 5.51%, due July 7, 1998 1,988,173
15,000,000 Nalco Chemical Co., 5.51%, due July 9, 1998 14,981,633
2,000,000 PepsiCo Inc., 6.00%, due July 1, 1998 2,000,000
2,500,000 Proctor & Gamble Co., 5.50%, due July 1, 1998 2,500,000
2,900,000 Progress Capital Holdings Inc., 5.50%, due July 2, 1998 2,899,557
5,000,000 Progress Capital Holdings Inc., 5.52%, due July 2, 1998 4,999,233
15,000,000 Sara Lee Corp., 6.05%, due July 1, 1998 15,000,000
25,000,000 Shell Finance PLC, 5.50%, due July 6, 1998 24,980,903
4,000,000 Shell Finance PLC, 5.50%, due July 8, 1998 3,995,722
4,114,000 Snap on Tools Corp., 5.57%, due July 7, 1998 4,110,181
2,200,000 South Carolina Electric Gas, 5.53%, due July 27, 1998 2,191,213
4,000,000 Southwestern Public Service, 5.52%, due July 10, 1998 3,994,480
1,500,000 Southwestern Public Service, 5.55%, due July 17, 1998 1,496,300
16,400,000 Times Mirror Co., 5.50%, due July 1, 1998 16,400,000
8,600,000 Times Mirror Co., 5.50%, due July 2, 1998 8,598,686
2,560,000 Toys R Us, 5.53%, due July 23, 1998 2,551,348
9,760,000 Xerox Capital Europe PLC, 5.50%, due July 13, 1998 9,742,107
SHORT-TERM CORPORATE NOTES (Cost $551,622,089) - 99.26% 551,622,089
GOVERNMENT SPONSORED ENTERPRISES - 0.78%
1,000,000 Federal Home Loan Bank,
5.70%, due April 15, 1999 1,000,000
536,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.44%, due July 7, 1998 535,514
2,800,000 Federal National Mortgage Association Discount Notes,
5.58%, due July 8, 1998 2,796,962
GOVERNMENT SPONSORED ENTERPRISES (Cost $4,332,476) - 0.78% 4,332,476
REPURCHASE AGREEMENT (Cost $2,000,000) - 0.36%
2,000,000 Lehman Tri-Party Repo.,
5.78%, due July 1, 1998
(Collateralized by U.S. Treasury Strips,
8.875%, due February 15, 2019) 2,000,000
TOTAL INVESTMENTS (Cost $557,954,565) - 100.40% $ 557,954,565
Other assets less liabilities - (0.40%) (2,207,750)
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share;
750,000,000 shares of 0.01 par value
capital shares authorized;
555,776,499 shares outstanding) $ 555,746,815
</TABLE>
Valuation of securities is on the basis of amortized cost, which approximates
market value.
See accompanying Notes to Financial Statements.
<TABLE>
<CAPTION>
Face Market
Amount Description Value
FEDERAL PORTFOLIO
GOVERNMENT SPONSORED ENTERPRISES - 89.44%
</CAPTION>
<S> <C>
$ 15,000,000 Federal Agricultural Mortgage Association Discount Notes,
5.45%, due July 9, 1998 $ 14,981,833
8,407,000 Federal Agricultural Mortgage Association Discount Notes,
5.47%, due July 17, 1998 8,386,561
3,400,000 Federal Agricultural Mortgage Association Discount Notes,
5.50%, due July 29, 1998 3,385,456
2,500,000 Federal Home Loan Banks Discount Notes,
5.70%, due April 15, 1999 2,500,000
1,050,000 Federal Home Loan Banks Discount Notes,
5.42%, due July 3, 1998 1,049,684
1,290,000 Federal Home Loan Banks Discount Notes,
5.50%, due July 22, 1998 1,285,861
5,000,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.40%, due July 1, 1998 5,000,000
10,000,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.44%, due July 1, 1998 10,000,000
5,000,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.41%, due July 2, 1998 4,999,249
4,130,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.48%, due July 7, 1998 4,126,228
9,647,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.44%, due July 10, 1998 9,633,880
7,500,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.45%, due July 13, 1998 7,486,375
6,535,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.48%, due July 14, 1998 6,522,068
2,221,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.50%, due July 14, 1998 2,216,589
3,879,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.47%, due July 17, 1998 3,869,570
1,871,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.50%, due July 17, 1998 1,866,426
12,150,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.45%, due July 20, 1998 12,115,052
2,192,000 Federal Home Loan Mortgage Corporation Discount Notes,
5.47%, due July 20, 1998 2,185,672
10,000,000 Federal National Mortgage Association Discount Notes,
5.43%, due July 2, 1998 9,998,492
10,000,000 Federal National Mortgage Association Discount Notes,
5.45%, due July 2, 1998 9,998,486
8,696,000 Federal National Mortgage Association Discount Notes,
5.45%, due July 6, 1998 8,689,418
25,000,000 Federal National Mortgage Association Discount Notes,
5.56%, due July 7, 1998 24,976,833
15,000,000 Federal National Mortgage Association Discount Notes,
5.43%, due July 8, 1998 14,984,162
12,500,000 Federal National Mortgage Association Discount Notes,
5.46%, due July 8, 1998 12,486,729
12,500,000 Federal National Mortgage Association Discount Notes,
5.46%, due July 13, 1998 12,477,250
6,000,000 Federal National Mortgage Association Discount Notes,
5.45%, due July 14, 1998 5,988,192
22,325,000 Federal National Mortgage Association Discount Notes,
5.46%, due July 14, 1998 22,280,982
17,500,000 Federal National Mortgage Association Discount Notes,
5.46%, due July 15, 1998 17,462,842
2,500,000 Federal National Mortgage Association Discount Notes,
5.50%, due July 15, 1998 2,494,653
5,250,000 Federal National Mortgage Association Discount Notes,
5.45%, due July 16, 1998 5,238,078
3,274,000 Federal National Mortgage Association Discount Notes,
5.47%, due July 16, 1998 3,266,538
4,000,000 Federal National Mortgage Association Discount Notes,
5.46%, due July 17, 1998 3,990,293
3,000,000 Federal National Mortgage Association Discount Notes,
5.475%, due July 22, 1998 2,990,419
3,745,000 Federal National Mortgage Association Discount Notes,
5.44%, due August 3, 1998 3,726,325
1,555,000 Federal National Mortgage Association Discount Notes,
5.45%, due August 5, 1998 1,546,761
5,000,000 Federal National Mortgage Association Discount Notes,
5.42%, due August 7, 1998 4,972,147
1,800,000 Federal National Mortgage Association Discount Notes,
5.44%, due August 7, 1998 1,789,936
TOTAL GOVERNMENT SPONSORED ENTERPRISES (Cost $270,969,040) - 89.44% 270,969,040
REPURCHASE AGREEMENT (Cost $33,100,000) - 10.93%
33,100,000 Lehman Tri-Party Repo., 5.78%, due July 1, 1998
(Collateralized by U S Treasury Strips,
8.875%, due February 15, 2019) 33,100,000
TOTAL INVESTMENTS (Cost $304,069,040) - 100.37% $ 304,069,040
Other assets less liabilities - (0.37%) (1,120,051)
TOTAL NET ASSETS - 100.00%
(equivalent to 1.00 per share;
750,000,000 shares of 0.01 par value
capital shares authorized;
302,997,112 shares outstanding) $ 302,948,989
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 1998
<TABLE>
<CAPTION>
Prime Federal
Portfolio Portfolio
</CAPTION>
<S> <C> <C>
ASSETS:
Investment securities, at market value $ 557,954,565 $ 304,069,040
Interest receivable 28,768 35,373
Total assets 557,983,333 304,104,413
LIABILITIES:
Disbursements in excess of demand deposit cash (2,236,518) (1,155,424)
Total liabilities (2,236,518) (1,155,424)
NET ASSETS $ 555,746,815 $ 302,948,989
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 555,779,862 $ 302,997,774
Accumulated net realized loss on investment transactions (33,047) (48,785)
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 555,746,815 $ 302,948,989
Capital shares, $0.01 par value
Authorized 750,000,000 750,000,000
Outstanding 555,776,499 302,997,112
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, 1998
<TABLE>
<CAPTION>
Prime Federal
Portfolio Portfolio
</CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Interest $ 30,627,846 $ 16,900,188
Expenses:
Management fees 2,719,691 1,519,872
Government fees 41,280 23,035
2,760,971 1,542,907
Net investment income 27,866,875 15,357,281
Net increase in net assets resulting from operations $ 27,866,875 $ 15,357,281
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
For The Years Ended June 30, 1998 and 1997
<TABLE>
<CAPTION>
Prime Federal
Portfolio Portfolio
</CAPTION>
<S> <C> <C>
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
INCREASE IN NET ASSETS FROM OPERATIONS: 1998 1998
Net investment income $ 27,866,875 $ 15,357,281
Net increase in net assets resulting from operations 27,866,875 15,357,281
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (27,866,875) (15,357,281)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ($1.00 per share) 928,253,918 688,025,800
Net asset value of shares issued for reinvestment of
distributions ($1.00 per share) 5,260,269 2,568,617
933,514,187 690,594,417
Cost of shares redeemed ($1.00 per share) (822,862,867) (625,946,162)
Net increase in net assets from capital share transactions 110,651,320 64,648,255
Net increase in net assets 110,651,320 64,648,255
NET ASSETS - June 30, 1997 445,095,495 238,300,734
NET ASSETS - June 30, 1998 $ 555,746,815 $ 302,948,989
</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. 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, which is also used for federal income tax purposes.
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, 1998, the Fund has accumulated net realized
losses on sales of investments for federal income tax purposes of
$33,047 (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, 1998, were as
follows:
Other than
U.S. Government U.S. Government
Prime Portfolio Securities Securities
Purchases $ 1,284,219 $ 274,484,541
Proceeds from sales 3,282,552 329,157,047
Federal Portfolio
Purchases $ 31,394,837 $ 4,785,317,017
Proceeds from sales 47,090,000 5,622,923,256
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.
5. SUBSEQUENT EVENT - Subsequent to the Fund's year-end, the Fund name
will change to UMB Scount Money Market Fund, Inc.
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share
outstanding throughout the period.
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994
</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 0.05 0.03
Distributions from:
Net investment income (0.05) (0.05) (0.05) (0.05) (0.03)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 5% 5% 5% 5% 3%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 556 $ 445 $ 330 $ 245 $ 172
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 5.14% 4.97% 5.16% 5.10% 2.92%
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 0.05 0.03
Distributions from:
Net investment income (0.05) (0.05) (0.05) (0.05) (0.03)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 5% 5% 5% 5% 3%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 303 $ 238 $ 228 $ 183 $ 195
Ratio of expenses to average net assets 0.51% 0.52% 0.51% 0.51% 0.50%
Ratio of net investment income to average net assets 5.03% 4.92% 5.09% 4.97% 2.81%
</TABLE>
See accompanying Notes to Financial Statements.
INDEPENDENT ACCOUNTANTS' REPORT
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, 1998, and the related statement of operations, statements of
changes in net assets and the financial highlights for the periods
indicated thereon (periods presented prior to June 30, 1997 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 audits.
We conducted our audits 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, 1998, 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 manage-
ment, as well as evaluating the overall financial statement
presentation. We believe that our audits provide 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, 1998,
the results of its operations, the changes in its net assets and the
financial highlights for the periods indicated in the first paragraph,
in conformity with generally accepted accounting principles.
BAIRD KURTZ & DOBSON
Kansas City, Missouri
July 24, 1998
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
Martin A. Cramer, Vice President & Secretary
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
Custodian
UMB Bank, n.a., Kansas City, Missouri
SCOUT FUNDS
P.O. Box 410498
Kansas City, MO 64141-0498
TOLL-FREE (800) 996-2862
www.umb.com
Underwriter & Distributor: Jones & Babson, Inc., Kansas City, Missouri
JB24B 8/98
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000704773
<NAME> SCOUT MONEY MARKET FUND INC
<SERIES>
<NUMBER> 1
<NAME> PRIME PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 557954565
<INVESTMENTS-AT-VALUE> 557954565
<RECEIVABLES> 28768
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 557983333
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2236518
<TOTAL-LIABILITIES> 2236518
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 555779862
<SHARES-COMMON-STOCK> 555776499
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (33047)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 555746815
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 30627846
<OTHER-INCOME> 0
<EXPENSES-NET> 2760971
<NET-INVESTMENT-INCOME> 27866875
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 27866875
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 27866875
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 928253918
<NUMBER-OF-SHARES-REDEEMED> 822862867
<SHARES-REINVESTED> 5260269
<NET-CHANGE-IN-ASSETS> 110651320
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2719691
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2760971
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .51
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000704773
<NAME> SCOUT MONEY MARKET FUND INC
<SERIES>
<NUMBER> 2
<NAME> FEDERAL PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 304069040
<INVESTMENTS-AT-VALUE> 304069040
<RECEIVABLES> 35373
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 304104413
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1155424
<TOTAL-LIABILITIES> 1155424
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 302997774
<SHARES-COMMON-STOCK> 302997112
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (48785)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 302948989
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 16900188
<OTHER-INCOME> 0
<EXPENSES-NET> 1542907
<NET-INVESTMENT-INCOME> 15357281
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 15357281
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 15357281
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 688025800
<NUMBER-OF-SHARES-REDEEMED> 625946162
<SHARES-REINVESTED> 2568617
<NET-CHANGE-IN-ASSETS> 64648255
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1542907
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1542907
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .51
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
