Scout SM
Money Market
Fund
A no-load mutual fund
with primary emphasis
on maximum income
consistent with safety
of principal and
maintenance of liquidity.
Quarterly Report
March 31, 1998
TO THE SHAREHOLDERS
Scout Money Market Fund's Federal Portfolio earned 1.25% for the quarter
ended March 31, 1998, while the Prime Portfolio earned 1.27%. The 7-day
current yield on March 31, 1998, was 5.02% for the Federal Portfolio and
5.08% 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.
Money market rates started the quarter relatively high, with overnight
paper trading 20 to 30 basis points above the Fed Funds target rate of
5.50%. Waning supply quickly drove rates sharply lower in late January.
Rates gradually moved back toward the Fed Funds rate throughout the
remainder of the quarter, although a temporary spike at the quarter's
end sent overnight rates above 6.00%.
In the first quarter the market anticipated an easing in the Fed Funds
target rate. In our opinion, first-quarter economic releases presented a
mixture of information that does not point clearly to a rate move by the
Federal Reserve in either direction.
Given the continued uncertainty, we will maintain a moderate average
maturity and, as always, will use only the highest quality issues.
We appreciate your continued interest in the Scout Money Market Fund and
we welcome your comments and questions.
Chart - Fund Diversification
Federal Portfolio
Agency Discount Notes 91%
Repurchase Agreement 9%
Chart - Fund Diversification
Prime Portfolio
Commercial Paper 97%
Agency Discount Notes 2%
Repurchase Agreement 1%
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 invested.
FINANCIAL STATEMENTS
Statement of Net Assets
March 31, 1998 (unaudited)
Principal Market
Amount Description Value
PRIME PORTFOLIO
SHORT-TERM CORPORATE NOTES - 95.70%
$ 4,500,000 Air Products & Chemicals,
5.43%, due May 12, 1998 $ 4,472,171
10,000,000 American Greetings Co.,
5.50%, due April 6, 1998 9,992,361
3,135,000 American Greetings Co.,
5.53%, due April 16, 1998 3,127,776
7,500,000 American Greetings Co.,
5.52%, due April 13, 1998 7,486,200
5,000,000 American Greetings Co.,
5.45%, due April 17, 1998 4,987,889
4,000,000 American Greetings Co.,
5.52%, due April 23, 1998 3,986,507
10,000,000 American Tel & Telegraph Co.,
5.50%, due April 1, 1998 10,000,000
3,000,000 Archer-Daniels-Midland Co.,
5.53%, due April 21, 1998 2,990,783
5,000,000 Archer-Daniels-Midland Co.,
5.50%, due May 4, 1998 4,974,792
15,000,000 Atlantic Richfield Co.,
5.50%, due April 15, 1998 14,967,917
15,000,000 Atlantic Richfield Co.,
5.52%, due May 1, 1998 14,931,000
10,000,000 BP America,
5.48%, due April 7, 1998 9,990,867
8,500,000 Bell Atlantic Network Funding,
5.53%, due April 8, 1998 8,490,860
10,000,000 Bell Atlantic Network Funding,
5.52%, due April 22, 1998 9,967,800
10,000,000 BellSouth Telecommunications,
5.45%, due April 8, 1998 9,989,403
2,555,000 BellSouth Telecommunications,
5.50%, due April 14, 1998 2,549,925
7,000,000 BellSouth Telecommunications,
5.49%, due April 21, 1998 6,978,650
10,000,000 Campbell Soup Co.,
5.50%, due April 27, 1998 9,960,278
10,000,000 Donnelly RR & Sons Co.,
6.00%, due April 1, 1998 10,000,000
5,900,000 Donnelly RR & Sons Co.,
5.51%, due April 13, 1998 5,889,164
10,000,000 Dover Corp.,
5.52%, due April 13, 1998 9,981,600
5,000,000 Dover Corp.,
5.55%, due April 16, 1998 4,988,437
10,000,000 Dover Corp.,
5.52%, due April 20, 1998 9,970,867
12,500,000 Duke Energy Co.,
5.46%, due April 17, 1998 12,469,667
12,500,000 Duke Energy Co.,
5.50%, due April 23, 1998 12,457,986
20,000,000 Dun & Bradstreet Corp.,
5.51%, due April 24, 1998 19,929,594
5,000,000 Dun & Bradstreet Corp.,
5.53%, due April 28, 1998 4,979,262
5,000,000 Dun & Bradstreet Corp.,
5.54%, due May 7, 1998 4,972,300
5,000,000 duPont (E.I.) deNemours & Co.,
5.51%, due April 7, 1998 4,995,408
10,000,000 duPont (E.I.) deNemours & Co.,
5.50%, due April 8, 1998 9,989,306
7,500,000 duPont (E.I.) deNemours & Co.,
5.50%, due April 23, 1998 7,474,792
7,500,000 duPont (E.I.) deNemours & Co.,
5.50%, due April 27, 1998 7,470,208
7,500,000 Eastman Kodak Co.,
5.50%, due April 23, 1998 7,474,792
18,000,000 Eastman Kodak Co.,
5.50%, due April 27, 1998 17,928,500
5,000,000 Eastman Kodak Co.,
5.50%, due April 28, 1998 4,979,375
8,000,000 Emerson Electric Co.,
5.50%, due April 1, 1998 8,000,000
15,000,000 Gannett, Inc.,
5.50%, due April 22, 1998 14,951,875
10,000,000 General Re Corp.,
5.50%, due May 4, 1998 9,949,583
5,000,000 General Re Corp.,
5.51%, due May 7, 1998 4,972,450
15,000,000 Heinz H. J. Co.,
5.44%, due April 10, 1998 14,979,600
5,000,000 Heinz H. J. Co.,
5.55%, due April 17, 1998 4,987,667
10,000,000 Heinz H. J. Co.,
5.49%, due May 5, 1998 9,948,150
17,000,000 Hershey Foods Corp.,
5.42%, due April 3, 1998 16,994,881
3,650,000 Hershey Foods Corp.,
5.52%, due April 6, 1998 3,647,202
5,000,000 International Business Machines Corp.,
5.50%, due April 6, 1998 4,996,181
3,700,000 Laclede Gas Co.,
5.57%, due April 6, 1998 3,697,138
4,500,000 Laclede Gas Co.,
5.55%, due April 17, 1998 4,488,900
15,000,000 Monsanto Co.,
5.51%, due April 16, 1998 14,965,563
10,000,000 Monsanto Co.,
5.51%, due April 21, 1998 9,969,389
5,000,000 Monsanto Co.,
5.51%, due April 22, 1998 4,983,929
20,000,000 Motorola, Inc.,
5.50%, due April 14, 1998 19,960,278
18,000,000 Nalco Chemical Co.,
5.52%, due April 9, 1998 17,977,920
12,500,000 Proctor & Gamble Co.,
5.46%, due April 1, 1998 12,500,000
12,500,000 Proctor & Gamble Co.,
5.47%, due April 6, 1998 12,490,503
10,000,000 Progress Capital Holdings, Inc.,
5.45%, due April 2, 1998 9,998,486
12,000,000 Progress Capital Holdings, Inc.,
5.56%, due April 28, 1998 11,949,960
4,100,000 Shell Oil Co.,
5.50%, due April 30, 1998 4,081,835
5,000,000 Snap On, Inc.,
5.52%, due May 11, 1998 4,969,333
13,000,000 South Carolina Electric Gas,
5.52%, due April 2, 1998 12,998,007
3,000,000 Wisconsin Electric Power Co.,
5.46%, due April 3, 1998 2,999,090
1,100,000 Wisconsin Electric Power Co.,
5.52%, due April 10, 1998 1,098,482
3,000,000 Wisconsin Electric Power Co.,
5.53%, due April 10, 1998 2,995,852
4,500,000 Wisconsin Electric Power Co.,
5.54%, due April 10, 1998 4,493,767
3,332,000 Xerox Capital Europe PLC,
6.10%, due April 1, 1998 3,332,000
15,000,000 Xerox Capital Europe PLC,
5.52%, due April 20, 1998 14,956,300
565,472,000 564,130,758
GOVERNMENT SPONSORED ENTERPRISES - 1.60%
367,000 Federal Home Loan Mortgage Corp.
Discount Notes,
5.47%, due April 6, 1998 366,721
1,000,000 Federal Home Loan Mortgage Corp.
Discount Notes,
5.435, due April 13, 1998 998,188
4,725,000 Federal Home Loan Mortgage Corp.
Discount Notes,
5.44%, due April 13, 1998 4,716,432
238,000 Federal Home Loan Mortgage Corp.
Discount Notes,
5.50%, due April 20, 1998 237,309
3,100,000 Federal National Mortgage Association
Discount Notes,
5.52%, due April 13, 1998 3,094,296
9,430,000 9,412,946
REPURCHASE AGREEMENT - 2.37%
14,000,000 Lehman Tri-Party Repo.,
5.88%, due April 1, 1998
(Collateralized by U.S. Treasury Note,
7.25%, due August 15, 2004 14,000,000
TOTAL INVESTMENTS - 99.67% $ 587,543,704
Other assets less liabilities - 0.33% 1,960,720
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share;
750,000,000 shares of $0.01 par value
capital shares authorized;
589,534,108 shares outstanding) $ 589,504,424
Valuation of securities is on the basis of amortized cost, which approximates
market value.
Principal Market
Amount Description Value
FEDERAL PORTFOLIO
GOVERNMENT SPONSORED ENTERPRISES - 93.82%
$ 15,000,000 Federal Agricultural Mortgage Corp.,
5.47%, due April 17 1998 $ 14,963,533
15,000,000 Federal Agricultural Mortgage Corp.,
5.47%, due April 20, 1998 14,956,696
21,090,000 Federal Agricultural Mortgage Corp.,
5.48%, due April 27, 1998 21,006,531
12,500,000 Federal Home Loan Banks Discount Note,
5.43%, due April 1, 1998 12,500,000
11,700,000 Federal Home Loan Banks Discount Note,
5.42%, due April 3, 1998 11,696,477
6,400,000 Federal Home Loan Banks Discount Note,
5.45%, due April 7, 1998 6,394,187
10,000,000 Federal Home Loan Banks Discount Note,
5.435%, due April 8, 1998 9,989,432
15,000,000 Federal Home Loan Banks Discount Note,
5.44%, due April 8, 1998 14,984,133
2,636,000 Federal Home Loan Banks Discount Note,
5.45%, due April 9, 1998 2,632,808
5,000,000 Federal Home Loan Banks Discount Note,
5.45%, due April 13, 1998 4,990,917
7,258,000 Federal Home Loan Banks Discount Note,
5.52%, due April 22, 1998 7,234,629
1,000,000 Federal Home Loan Banks Discount Note,
5.52%, due April 23, 1998 996,627
10,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.45%, due April 2, 1998 9,998,486
7,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.435%, due April 3, 1998 7,497,735
12,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.44%, due April 6, 1998 12,490,556
17,665,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.45%, due April 6, 1998 17,651,628
8,600,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.48%, due April 7, 1998 8,592,145
5,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.45%, due April 9, 1998 4,993,945
7,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.45%, due April 10, 1998 7,489,781
2,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.44%, due April 13, 1998 1,996,373
18,100,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.45%, due April 13, 1998 18,067,118
1,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.50%, due April 13, 1998 1,497,250
12,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.46%, due April 15, 1998 12,473,458
7,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.47%, due April 15, 1998 7,484,046
5,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.50%, due April 15, 1998 4,989,306
15,650,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.46%, due April 16, 1998 15,614,396
2,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.52%, due April 17, 1998 2,493,867
11,400,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.48%, due April 21, 1998 11,365,293
10,000,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.50%, due April 21, 1998 9,969,445
12,500,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.45%, due April 23, 1998 12,458,368
3,910,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.43%, due April 27, 1998 3,894,666
10,300,000 Federal Home Loan Mortgage Corporation
Discount Notes,
5.45%, due April 30, 1998 10,254,780
10,000,000 Federal National Mortgage Association
Discount Notes,
5.42%, due April 9, 1998 9,987,956
5,000,000 Federal National Mortgage Association
Discount Notes,
5.52%, due April 13, 1998 4,990,800
5,000,000 Federal National Mortgage Association
Discount Notes,
5.45%, due April 24, 1998 4,982,590
324,209,000 323,579,958
REPURCHASE AGREEMENT - 6.64%
$ 22,900,000 Lehman Tri-Party Repo.,
5.88%, due April 1, 1998
(Collateralized by U.S. Treasury Note,
5.50%, due January 31, 2003) $ 22,900,000
TOTAL INVESTMENTS - 100.46% $ 346,479,958
Other assets less liabilities - (0.46%) (1,603,658)
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share;
750,000,000 shares of $0.01 par value
capital shares authorized;
344,924,423 shares outstanding) $ 344,876,300
Valuation of securities is on the basis of amortized cost, which approximates
market value.
This report has been prepared for the information of the Shareholders of
Scout Money Market Fund, Inc., and is not to be construed as an offering of
the shares of the Fund. Shares of this Fund and of the other Scout Funds are
offered only by the Prospectus, a copy of which may be obtained from Jones &
Babson, Inc.
Board of Directors
and Officers
Board of Directors
Larry D. Armel
William E. Hoffman, D.D.S.
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 (800) 996-2862
www.umb.com
JB24A 5/98
