UMB SCOUT FUNDS
MONEY MARKET FUND
FEDERAL PORTFOLIO (UMFXX)
PRIME PORTFOLIO (UMPXX)
SEMIANNUAL REPORT DECEMBER 31, 1999
A no-load mutual fund with primary emphasis
on maximum income consistent with safety
of principal and maintenance of liquidity.
TO THE SHAREHOLDERS
The UMB Scout Money Market Fund's Federal Portfolio earned
1.24% for the quarter ended December 31, 1999, while the
Prime Portfolio earned 1.27%. The seven-day current yield on
December 31st was 5.14% for the Federal Portfolio and 5.52%
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.
An investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve the
value of your investment at $1.00 per share, it is possible
to lose money by investing in the Fund.
We entered the fourth quarter with the Federal Open Market
Committee (FOMC) carrying a tightening bias, signaling their
ongoing concern that inflation might be working its way back
into the economy. This was emphasized in mid-November, as
signs of growing employment and wage pressures prompted the
FOMC to make another "pre-emptive strike" against inflation
by increasing the Fed Funds rate from 5.25% to 5.50%. It was
their third such increase in six months. At that time, the
FOMC also softened its bias to "neutral," implying less
immediate concern for inflationary pressures. Despite this
change in bias, market participants immediately began
debating the likelihood of an ongoing series of tightenings,
primarily reflecting concerns that lofty equity valuations
will continue to push the economy nearer to inflationary growth.
Initially, short-term rates rose in line with the changes to
Fed Funds. However, as we moved into late December, concerns
over Y2K problems caused issuers to cease offering
maturities in the late-December/early-January timeframe.
This reduction in supply caused a definite (albeit
temporary) drop in overnight rates. However, we had already
acquired sufficient positions maturing in mid-January to
guarantee ample liquidity in the Fund and help bolster
returns. Aside from the short-term difficulties caused by
supply restrictions, your UMB Scout Money Market Fund was
unaffected by Y2K turbulence.
We appreciate your continued interest in the UMB Scout Money
Market Fund and welcome your comments and questions.
Sincerely,
/s/William A. Faust
William A. Faust
UMB Investment Advisors
CHART - FUND DIVERSIFICATION - UMB SCOUT MONEY MARKET FUND -
FEDERAL PORTFOLIO (UMFXX)
CHART - FUND DIVERSIFICATION - UMB SCOUT MONEY MARKET FUND -
PRIME PORTFOLIO (UMPXX)
Shares of the UMB 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") or any other
government agency. These shares involve investment risks,
including the possible loss of the principal invested.
FINANCIAL STATEMENTS DECEMBER 31, 1999 (unaudited)
Statement of Net Assets
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT DESCRIPTION VALUE
</CAPTION>
<S> <C>
PRIME PORTFOLIO
SHORT-TERM CORPORATE NOTES - 78.93%
$10,000,000 Aluminum Company of America, 5.25%, due January 10, 2000 $ 9,986,875
5,500,000 Aluminum Company of America, 6.45%, due January 14, 2000 5,487,190
20,000,000 American Tel & Telegraph Co., 5.90%, due January 14, 2000 19,957,389
10,000,000 American Tel & Telegraph Co., 6.05%, due January 21, 2000 9,966,389
5,000,000 American Tel & Telegraph Co., 6.25%, due January 25, 2000 4,979,167
23,000,000 Amgen Inc., 6.30%, due January 27, 2000 22,895,350
10,000,000 Arco British Ltd., 6.05%, due January 11, 2000 9,983,194
15,000,000 Arco British Ltd., 6.05%, due January 11, 2000 14,974,792
11,300,000 Becton Dickinson & Co., 6.10%, due January 31, 2000 11,242,558
15,000,000 Bell Atlantic Network Funding, 6.02%, due January 19, 2000 14,954,850
15,000,000 BellSouth Telecommunications, 6.25%, due January 19, 2000 14,953,125
3,347,000 BellSouth Telecommunications, 6.75%, due January 10, 2000 3,341,352
30,000,000 Chevron USA Inc., 6.45%, due January 26, 2000 29,865,625
15,000,000 Coca-Cola Co., 6.07%, due January 18, 2000 14,957,004
17,500,000 Coca-Cola Co., 6.05%, due January 06, 2000 17,485,295
12,500,000 Deere and Company, 6.03%, due January 13, 2000 12,474,875
15,000,000 Dover Corp., 6.00%, due January 13, 2000 14,970,000
3,000,000 Dover Corp., 6.45%, due January 27, 2000 2,986,025
10,000,000 Duke Power Co., 5.80%, due January 5, 2000 9,993,556
5,000,000 Dun & Bradstreet Corp, 6.00%, due January 18, 2000 4,985,833
15,002,000 duPont (E.I.) deNemours & Co., 5.35%, due January 13, 2000 14,975,246
20,000,000 Gannett Co., Inc., 6.00%, due January 7, 2000 19,980,000
7,500,000 General Mills Inc., 5.85%, due January 4, 2000 7,496,344
10,000,000 General Mills Inc., 5.87%, due January 5, 2000 9,993,478
15,000,000 Halliburton Co., 5.90%, due January 4, 2000 14,992,625
5,000,000 Halliburton Co., 5.90%, due January 7, 2000 4,995,083
10,000,000 Halliburton Co., 6.30%, due January 10, 2000 9,984,250
5,552,000 Johnson & Johnson, 4.75%, due January 6, 2000 5,548,337
1,700,000 Laclede Gas Co., 5.98%, due January 24, 2000 1,693,505
15,000,000 Merck & Co. Inc. Comm. Paper, 6.15%, due February 1, 2000 14,920,563
25,000,000 Minnesota Mining & Manufacturing, 6.15%, due January 28, 2000 24,884,688
5,000,000 Mobil Corp, 5.95%, due January 13, 2000 4,990,083
20,000,000 Mobil Corp, 6.00%, due January 24, 2000 19,923,333
10,000,000 Mobil Corp, 6.00%, due January 25, 2000 9,960,000
14,000,000 Nalco Chemical Co., 7.05%, due January 31, 2000 13,917,750
5,000,000 Nalco Chemical Co., 5.77%, due January 18, 2000 4,986,376
15,000,000 Procter & Gamble Co., 5.90%, due January 12, 2000 14,972,958
10,000,000 Progress Capital Holdings, Inc., 5.90%, due January 10, 2000 9,984,460
15,000,000 Progress Capital Holdings, Inc., 6.35%, due January 10, 2000 14,976,188
17,000,000 Snap On, Inc., 6.28%, due January 20, 2000 16,943,654
5,000,000 South Carolina Electric Gas, 6.60%, due February 1, 2000 4,971,583
5,000,000 Texaco, Inc., 5.75%, due January 19, 2000 4,985,625
15,000,000 Texaco, Inc., 5.93%, due January 12, 2000 14,972,821
8,000,000 Wisconsin Electric Power Co., 6.05%, due January 20, 2000 7,974,456
14,745,000 Wisconsin Electric Power Co., 6.05%, due January 21, 2000 14,695,440
10,000,000 Wisconsin Electric Power Co., 6.20%, due January 25, 2000 9,958,667
2,246,000 Wisconsin Electric Power Co., 6.30%, due January 19, 2000 2,238,925
10,000,000 Xerox Capital Europe PLC, 6.30%, due January 21, 2000 9,965,000
TOTAL SHORT-TERM CORPORATE NOTES - 78.93% 560,321,882
GOVERNMENT-SPONSORED ENTERPRISES - 21.46%
4,500,000 Federal Home Loan Banks Discount Notes, 5.05%, due March 3, 2000 4,500,000
2,000,000 Federal Home Loan Banks Discount Notes, 6.20%, due October 27, 2000 2,000,000
7,860,000 Federal Home Loan Banks Discount Notes, 5.00%, due January 21, 2000 7,838,167
2,000,000 Federal Home Loan Banks Discount Notes, 5.73%, due January 14, 2000 1,995,862
7,350,000 Federal Home Loan Banks Discount Notes, 5.73%, due January 14, 2000 7,334,792
20,000,000 Federal Home Loan Banks Discount Notes, 5.42%, due January 5, 2000 19,987,956
4,500,000 Federal Home Loan Banks Discount Notes, 5.65%, due January 4, 2000 4,497,881
22,000,000 Federal Home Loan Mortgage Corp Discount Notes,
4.50%, due January 5, 2000 21,989,000
30,000,000 Federal Home Loan Mortgage Corp Discount Notes,
4.50%, due January 5, 2000 29,985,000
6,135,000 Federal Home Loan Mortgage Corp Discount Notes,
5.00%, due January 18, 2000 6,120,515
4,130,000 Federal Home Loan Mortgage Corp Discount Notes,
5.00%, due January 19, 2000 4,119,675
1,500,000 Federal Home Loan Mortgage Corp Discount Notes,
5.55%, due January 14, 2000 1,496,994
6,740,000 Federal Home Loan Mortgage Corp Discount Notes,
5.61%, due January 11, 2000 6,729,497
3,052,000 Federal Home Loan Mortgage Corp Discount Notes,
5.61%, due January 14, 2000 3,045,817
10,000,000 Federal National Mortgage Association Discount Notes,
5.50%, due January 18, 2000 9,974,028
3,850,000 Federal National Mortgage Association Discount Notes,
5.70%, due March 2, 2000 3,812,815
10,000,000 Federal National Mortgage Association Discount Notes,
5.54%, due January 20, 2000 9,970,761
5,000,000 Federal National Mortgage Association Discount Notes,
5.10%, due May 19, 2000 4,999,810
2,000,000 Federal National Mortgage Association Discount Notes,
5.21%, due July 7, 2000 1,945,584
TOTAL GOVERNMENT-SPONSORED ENTERPRISES - 21.46% 152,344,153
TOTAL INVESTMENTS - 100.39% 712,666,035
Other assets less liabilities - (0.39%) (2,797,822)
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share; 750,000,000 shares of $0.01 par value
capital shares authorized; 709,897,715 shares outstanding) $ 709,868,213
</TABLE>
Valuation of securities is on the basis of amortized cost, which approximates
market value.
See accompanying Notes to Financial Statements
FINANCIAL STATEMENTS DECEMBER 31, 1999 (unaudited)
Statement of Net Assets
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT DESCRIPTION VALUE
</CAPTION>
<S> <C>
FEDERAL PORTFOLIO
GOVERNMENT-SPONSORED ENTERPRISES - 99.33%
$ 7,739,000 Federal Home Loan Banks, Discount Note, 5.66%, due January 19, 2000 $ 7,717,099
5,000,000 Federal Home Loan Banks, Discount Note, 4.75%, due January 12, 2000 4,992,743
4,209,000 Federal Home Loan Banks, Discount Note, 4.00%, due January 11, 2000 4,204,323
2,000,000 Federal Home Loan Banks, Discount Note, 5.61%, due January 13, 2000 1,996,260
5,000,000 Federal Home Loan Banks, Discount Note, 5.73%, due January 19, 2000 4,985,675
1,209,000 Federal Home Loan Banks, Discount Note, 5.80%, due January 21, 2000 1,205,104
6,640,000 Federal Home Loan Banks, Discount Note, 5.00%, due January 21, 2000 6,621,556
12,650,000 Federal Home Loan Banks, Discount Note, 5.73%, due January 14, 2000 12,623,825
7,000,000 Federal Home Loan Banks, Discount Note, 5.81%, due January 19, 2000 6,979,665
14,000,000 Federal Home Loan Banks, Discount Note, 5.42%, due January 5, 2000 13,991,569
10,500,000 Federal Home Loan Banks, Discount Note, 5.65%, due January 4, 2000 10,495,056
3,000,000 Federal Home Loan Banks, Discount Note, 5.05%, due March 3, 2000 3,000,000
1,000,000 Federal Home Loan Banks, Discount Note, 6.20%, due October 27, 2000 1,000,000
1,671,000 Federal Agricultural Mort. Corp., Discount Note,
5.71%, due January 21, 2000 1,665,699
5,000,000 Federal Agricultural Mort. Corp., Discount Note,
5.60%, due January 13, 2000 4,990,667
1,806,000 Federal Home Loan Mortgage Corporation, Discount Notes,
4.75%, due January 11, 2000 1,803,617
1,280,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.10%, due January 14, 2000 1,277,643
4,454,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.40%, due January 3, 2000 4,452,664
4,579,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.43%, due January 5, 2000 4,576,237
3,284,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.45%, due January 5, 2000 3,282,011
4,400,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.48%, due February 29, 2000 4,360,483
10,000,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.57%, due January 10, 2000 9,986,075
6,782,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.58%, due January 10, 2000 6,772,539
4,050,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.58%, due January 12, 2000 4,043,095
8,650,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.58%, due January 13, 2000 8,633,911
8,165,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.65%, due January 11, 2000 8,152,185
2,000,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.67%, due January 19, 2000 1,994,330
10,000,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.70%, due March 3, 2000 9,903,417
1,700,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.71%, due January 12, 2000 1,697,034
1,727,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.71%, due January 19, 2000 1,722,069
4,192,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.74%, due January 27, 2000 4,174,622
7,500,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.74%, due January 28, 2000 7,467,713
1,240,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.76%, due February 11, 2000 1,231,866
1,500,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.76%, due February 15, 2000 1,489,200
843,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.76%, due February 8, 2000 837,875
4,453,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.71%, due January 14, 2000 4,443,818
1,200,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.73%, due February 11, 2000 1,192,169
7,991,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.74%, due January 13, 2000 7,975,684
11,750,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.72%, due January 12, 2000 11,729,464
13,000,000 Federal Home Loan Mortgage Corporation, Discount Notes,
4.50%, due January 5, 2000 12,993,500
5,700,000 Federal Home Loan Mortgage Corporation, Discount Notes,
5.80%, due January 25, 2000 5,677,960
2,435,000 Federal National Mortgage Association, Discount Notes,
5.72%, due January 21, 2000 2,427,262
5,000,000 Federal National Mortgage Association, Discount Notes,
5.52%, due January 18, 2000 4,986,967
2,500,000 Federal National Mortgage Association, Discount Notes,
5.56%, due January 18, 2000 2,493,436
3,150,000 Federal National Mortgage Association, Discount Notes,
5.70%, due January 20, 2000 3,140,524
12,000,000 Federal National Mortgage Association, Discount Notes,
5.71%, due January 20, 2000 11,963,837
9,150,000 Federal National Mortgage Association, Discount Notes,
5.72%, due January 27, 2000 9,112,200
1,000,000 Federal National Mortgage Association, Discount Notes,
5.75%, due January 21, 2000 996,806
7,510,000 Federal National Mortgage Association, Discount Notes,
5.75%, due January 26, 2000 7,480,012
1,380,000 Federal National Mortgage Association, Discount Notes,
5.76%, due January 24, 2000 1,374,922
2,800,000 Federal National Mortgage Association, Discount Notes,
5.78%, due February 4, 2000 2,784,715
3,000,000 Federal National Mortgage Association, Discount Notes,
5.21%, due July 7, 2000 2,918,377
15,000,000 Federal National Mortgage Association, Discount Notes,
5.50%, due January 18, 2000 14,961,042
5,000,000 Federal National Mortgage Association, Discount Notes,
5.54%, due January 20, 2000 4,985,381
7,500,000 Federal National Mortgage Association, Discount Notes,
5.65%, due January 6, 2000 7,494,115
7,500,000 Federal National Mortgage Association, Medium-Term Note,
5.10%, due May 19, 2000 7,499,715
2,070,000 US Agency Discounted Note 2,063,330
TOTAL GOVERNMENT-SPONSORED ENTERPRISES - 99.33% 305,023,060
TOTAL INVESTMENTS - 99.33% 305,023,060
Other assets less liabilities - 0.67% 2,060,729
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share; 750,000,000 shares of $0.01 par value
capital shares authorized; 307,132,658.260 shares outstanding) $ 307,083,789
</TABLE>
Valuation of securities is on the basis of amortized cost, which approximates
market value.
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS DECEMBER 31, 1999 (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
PRIME FEDERAL
PORTFOLIO PORTFOLIO
</CAPTION>
<S> <C> <C>
ASSETS:
Investment securities, at market value $ 712,666,035 $ 305,023,060
Interest receivable 127,402 106,311
Cash (2,968,178) 1,938,491
Total assets 709,825,259 307,067,862
LIABILITIES:
Accrued expenses (46,321) (17,550)
Income payable 3,367 1,623
Total liabilities (42,954) (15,927)
NET ASSETS $ 709,868,213 $ 307,083,789
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 709,901,260 $ 307,132,574
Accumulated net realized loss on
investment transactions (33,047) (48,785)
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 709,868,213 $ 307,083,789
Capital shares, $0.01 par value
Authorized 750,000,000 750,000,000
Outstanding 709,897,715 307,132,658
NET ASSET VALUE PER SHARE $ 1.00 $ 1.00
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS SIX MONTHS ENDED DECEMBER 31, 1999 (UNAUDITED)
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
PRIME FEDERAL
PORTFOLIO PORTFOLIO
</CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Interest $ 19,176,412 $ 8,203,049
Expenses:
Management fees 1,786,185 777,038
Government fees 19,449 11,265
1,805,634 788,302
Net investment income 17,370,778 7,414,747
Net increase in net assets resulting
from operations $ 17,370,778 $ 7,414,747
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS SIX MONTHS ENDED DECEMBER 31, 1999 (UNAUDITED) AND YEAR
ENDED JUNE 30, 1999
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PRIME FEDERAL
PORTFOLIO PORTFOLIO
1999 1999
</CAPTION>
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 30,935,014 $ 14,811,762
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (30,935,014) (14,811,762)
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ($1.00 per share) 1,281,907,452 647,138,544
Net asset value of shares issued for
reinvestment of distributions ($1.00 per share) 6,772,270 3,578,135
1,288,679,722 650,716,679
Cost of shares redeemed ($1.00 per share) (1,166,411,060) (655,224,005)
Net increase (decrease) in net assets from
capital share transactions 122,268,662 (4,507,326)
Net increase (decrease) in net assets 122,268,662 (4,507,326)
NET ASSETS - June 30, 1998 555,746,815 302,948,989
NET ASSETS - June 30, 1999 $ 678,015,477 $ 298,441,663
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 17,370,778 $ 7,414,747
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (17,370,778) (7,414,747)
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ($1.00 per share) 509,156,364 277,646,011
Net asset value of shares issued for reinvestment
of distributions ($1.00 per share) 4,112,222 1,751,511
513,268,586 279,397,522
Cost of shares redeemed ($1.00 per share) (481,415,850) (270,755,396)
Net increase (decrease) in net assets from
capital share transactions 31,852,736 8,642,126
Net increase (decrease) in net assets 31,852,736 8,642,126
NET ASSETS - June 30, 1999 678,015,477 298,441,663
NET ASSETS - December 31, 1999 $ 709,868,213 $ 307,083,789
</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
December 31, 1999, 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 six months ended
December 31, 1999, were as follows:
Other than
U.S. Government U.S. Government
Prime Portfolio Securities Securities
Purchases $ 6,002,748,983 $ 838,893,740
Proceeds from sales 6,111,799,768 762,789,952
Federal Portfolio
Purchases $ 156,105,573 $ 3,468,472,203
Proceeds from sales 168,348,000 3,448,795,860
3. MANAGEMENT FEES - UMB Bank, n.a. is the Fund's manager
and investment advisor 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.
This report has been prepared for the information of the
Shareholders of UMB Scout Money Market Fund, Inc., and is
not to be construed as an offering of shares of the Fund.
Shares of this Fund, and of the other UMB Scout Funds, are
offered only by the Prospectus, a copy of which may be
obtained from Jones & Babson, Inc.
UMB Scout Funds
100% No-Load Mutual Funds
Stock Fund
Stock Select Fund
Regional Fund
WorldWide Fund
WorldWide Select Fund
Capital Preservation Fund
Balanced Fund
Bond Fund
Kansas Tax-Exempt Bond Fund*
Money Market Fund
Federal Portfolio
Prime Portfolio
Tax-Free Money Market Fund
*Available in Kansas and Missouri only.
INVESTMENT ADVISORS AND MANAGER
UMB Bank, n.a., Kansas City, Missouri
AUDITORS
Baird, Kurtz & Dobson, Kansas City, Missouri
Legal Counsel
Stradley, Ronon, Stevens & Young, LLP
Philadelphia, Pennsylvania
CUSTODIAN
UMB Bank, n.a., Kansas City, Missouri
UNDERWRITER, DISTRIBUTOR
AND TRANSFER AGENT
Jones & Babson, Inc., Kansas City, Missouri
UMB SCOUT FUNDS
P.O. Box 219757
Kansas City, MO 64121-9757
Toll Free 800-996-2862
www.umb.com
"UMB", "Scout" and the "Scout" design are registered
service marks of UMB Financial Corporation.
