Scout Tax-Free Money Market Fund
(Formerly UMB Tax-Free Money Market Fund)
A no-load mutual fund principally invested in
short-term municipal securities seeking to provide maximum income exempt from
federal income tax consistent with safety of principal and maintenance
of liquidity.
Report for Quarter Ending
March 31, 1995
TO THE SHAREHOLDERS
The quarter ended March 31, 1995 saw a dramatic shift in investor sentiment.
After a strong 1994, the economy entered the new year with a lot of momentum.
The Federal Reserve tightened monetary policy by 50 basis points in early
February, capping a twelve-month period which saw short-term rates rise by a
full 300 basis points.
During the quarter, Scout Tax-Free Money Market Fund (formerly UMB Tax-Free
Money Market Fund) earned an average net annualized yield of 3.12%. These
figures increase to 3.13% for those shareholders who reinvested their
dividends. These returns are up significantly from a year ago.
As the period progressed, evidence began to mount that the Fed's restrictive
stance was beginning to impact the economy. Home building, auto sales, and
employment gains all began to slow and investors started to aggressively buy
longer fixed income securities for the first time in quite awhile.
By March 31, tax-exempt money fund yields had risen approximately 100 basis
points from the lows reached in mid-January. At the outset of the quarter,
reinvestment of bond maturities, calls and coupon income caused downward
pressure on short-term tax-exempt rates. As money began to be reinvested
further out on the yield curve, short-term tax-exempt yields began to rise.
Quarter-end pressures contributed even further to this rise in yields.
Given the turbulence experienced by the financial markets over the past year,
and concerns over the future direction of interest rates, our policy of
focusing on quality and liquidity without the use of derivatives should
continue to serve our shareholders well.
Sincerely,
LARRY D. ARMEL
Larry D. Armel
President
<PAGE>
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 federally
insured by the Federal Deposit Insurance Corporation or any other federal
agency. These shares involve investment risks, including the possible loss of
the principal amount invested.
FINANCIAL STATEMENTS
Statement of Net Assets
March 31, 1995
Principal Market
State Amount Description Value
ALABAMA
$ 600,000 Mobile, Alabama Industrial Dev. Board Solid
Waste Disposal Rev. (Scott Paper Co.),
Series A (LOC: Morgan Guaranty Trust Co.),
Fltg. Rate, 4.15%, due December 1, 2019 $ 600,000
1,100,000 Mobile, Alabama Industrial Dev. Board Solid
Waste Disposal Rev. (Scott Paper Co.), Series
D (LOC: Swiss Bank Corp.),
Fltg. Rate, 4.15%, due December 1, 2019 1,100,000
CALIFORNIA
1,450,000 California Rev. Anticipation Notes,
5.00%, due June 28, 1995 1,452,742
1,500,000 Los Angeles Cnty., California Tax & Rev.
Anticipation Notes,
4.50%, due June 30, 1995 1,499,916
COLORADO
1,100,000 Platte River Power Auth., Colorado Electric Rev.
(SBPA: Morgan Guaranty Trust Co.) (Mandatory
Redemption 5/9/95 @ 100),
4.25%, due June 1, 2018 1,100,000
1,000,000 Platte River Power Auth., Colorado Electric Rev.
(SBPA: Morgan Guaranty Trust Co.) (Mandatory
Redemption 6/1/95 @ 100),
3.90%, due June 1, 2018 1,000,000
1,000,000 Platte River Power Auth., Colorado Electric Rev.
(SBPA: Morgan Guaranty Trust Co.) (Mandatory
Redemption 5/10/95 @ 100),
3.95%, due June 1, 2018 1,000,000
CONNECTICUT
1,500,000 Connecticut Economic Recovery Notes (SBPA:
National Westminster Bank; Canadian Imperial
Bank of Commerce; Industrial Bank of Japan),
Fltg. Rate, 4.10%, due June 1, 1996 1,500,000
FLORIDA
1,000,000 Dade Cnty., Florida Water & Sewer Systems Rev.
(FGIC Insured) (Line: Industrial Bank of Japan),
Fltg. Rate, 3.45%, due October 5, 2022 1,000,000
1,000,000 Jacksonville, Florida Tax-Exempt Commercial
Paper, 4.15%, due April 16, 1995 1,000,000
2,300,000 Jacksonville Electric Auth., Florida Tax-Exempt
Commercial Paper (Line: Credit Suisse Bank),
3.75%, due May 9, 1995 2,300,000
GEORGIA
6,000,000 Burke Cnty., Georgia Dev. Auth. Pollution
Control Rev. (Oglethorpe Power Corp.)
(FGIC Insured), Series A (LOC: Credit Locale
de France),
Fltg. Rate, 4.10%, due April 5, 1995 6,000,000
1,000,000 Burke Cnty., Georgia Dev. Auth. Pollution Control
Rev. (Georgia Power Co.), Series 5, Fltg. Rate,
4.60%, due April 3, 1995 1,000,000
3,400,000 Georgia Municipal Gas Authority Rev.
(Transco Portfolio), Series B-2 (LOC: Credit
Suisse Bank) (Mandatory Redemption 4/13/95 @ 100),
4.00%, due January 1, 1998 3,400,000
700,000 Savannah, Georgia Downtown Dev. Authority Rev.
(Parking Facilities Project) (SBPA: National
Westminster Bank),
Fltg. Rate, 4.20%, due September 1, 1999 700,000
800,000 Savannah, Georgia Downtown Dev. Authority Rev.
(Parking Facilities Project) (SBPA: National
Westminster Bank),
Fltg. Rate, 4.20%, due September 1, 2000 800,000
HAWAII
1,500,000 Hawaii GO, Series BU,
7.00%, due November 1, 1995 1,523,328
ILLINOIS
1,000,000 Illinois GO, 4.75%, due May 15, 1995 1,000,938
860,000 Illinois Health Facilities Rev. (Rush
Presbyterian) (Line: Northern Trust)
(Mandatory Redemption 4/13/95 @ 100),
4.10%, due October 1, 2010 860,000
INDIANA
100,000 Hammond, Indiana Pollution Control Rev.
(Amoco), Fltg. Rate, 4.55%,
due November 15, 2006 100,000
2,000,000 Mt. Vernon, Indiana Pollution Control Rev.
(General Electric), Series 89 A (Mandatory
Redemption 5/8/95 @ 100),
3.80%, due December 1, 2004 2,000,000
700,000 Sullivan, Indiana Pollution Control Rev.
(National Rural Utility) (Hoosier Electric)
(Mandatory Redemption 4/6/95 @ 100),
3.80%, due December 1, 2014 700,000
1,135,000 Sullivan, Indiana Pollution Control Rev.
(National Rural Utility) (Hoosier Electric)
(Mandatory Redemption 4/12/95 @ 100),
4.15%, due December 1, 2014 1,135,000
KANSAS
3,400,000 Kansas Dept. Transportation Highway Rev.,
Series 94 B,
Fltg. Rate, 4.10%, due September 1, 2014 3,400,000
KENTUCKY
1,700,000 Trimble Cnty., Kentucky Pollution Control
Rev. Tax-Exempt Commercial Paper
(Louisville Gas & Electric Co.) (Mandatory
Redemption 6/1/95 @ 100),
4.00%, due September 1, 2017 1,700,000
LOUISIANA
3,900,000 Louisiana Offshore Terminal Auth. Deepwater
Port Rev. Ref.,
Fltg. Rate, 4.55%, due September 1, 2006 3,900,000
3,000,000 Louisiana Public Facilities Auth. School
Health Care System Rev. (Sisters of Charity)
(SBPA: Credit Suisse Bank), 4.10%,
due April 12, 1995 3,000,000
1,400,000 West Baton Rouge Parish, Louisiana Industrial
Dist. No. 3 Rev. Ref. (Dow Chemical),
Series 94 B, Fltg. Rate, 4.10%,
due December 1, 2016 1,400,000
MARYLAND
1,700,000 Washington Suburban Sanitation Dist.,
Maryland Bond Anticipation Notes,
Fltg. Rate, 3.90%, due December 28, 1995 1,700,000
MASSACHUSETTS
2,700,000 Massachusetts GO, Series B,
5.00%, due June 15, 1995 2,704,396
100,000 Massachusetts Dedicated Income Tax, Series
90 D (LOC: ABN AMRO),
Fltg. Rate, 4.50%, due June 1, 1995 100,000
MICHIGAN
800,000 Delta Cnty., Michigan Economic Dev. Environmental
Improvement Rev. (Mead Paper),
Series F (LOC: Bank of Nova Scotia), Fltg. Rate,
4.55%, due December 1, 2013 800,000
1,000,000 Michigan Municipal Bond Auth. Rev., Series A,
4.25%, due May 5, 1995 1,000,674
1,000,000 Michigan Strategic Fund (Dow Chemical),
Series 87 (Mandatory Redemption 4/27/95 @ 100),
3.85%, due August 1, 2003 1,000,000
MINNESOTA
1,000,000 Board of Regents Univ. of Minnesota, Univ.
Rev., Series 85 F (Mandatory Redemption
4/6/95 @ 100), 4.10%, due October 1, 2007 1,000,000
2,000,000 Rochester, Minnesota Health Facilities Rev.
(Mayo Foundation/Mayo Medical Center),
Series E (Mandatory Redemption 5/10/95 @ 100),
3.70%, due November 15, 2016 2,000,000
MISSISSIPPI
2,000,000 Jackson Cnty., Mississippi Port Facilities Rev.
(Chevron USA Inc.), Fltg. Rate,
4.55%, due June 1, 2023 2,000,000
MISSOURI
2,000,000 Columbia, Missouri Special Obligation, Series A
(LOC: Toronto-Dominion Bank),
Fltg. Rate, 4.20%, due June 1, 2008 2,000,000
2,000,000 Univ. of Missouri Capital Projects Notes,
Series FY 94-95 A,
4.50%, due June 30, 1995 2,004,282
NEBRASKA
1,700,000 Nebraska Public Power Dist. Tax-Exempt
Commercial Paper (LOC: Morgan Guaranty
Trust Co.), 4.10%, due April 18, 1995 1,700,000
NEVADA
3,700,000 Clark Cnty., Nevada Airport Improvement
Rev., Series 95A-1
(LOC: Toronto-Dominion Bank), Fltg. Rate,
4.10%, due July 1, 2025 3,700,000
NEW JERSEY
700,000 Mercer Cnty., New Jersey Improvement Auth.
Rev. (Pooled Government Loan Program) (LOC:
Credit Suisse Bank),
Fltg. Rate, 4.15%, due November 1, 1998 700,000
1,000,000 New Jersey Tax & Rev. Anticipation Notes,
Series A,
5.00%, due June 15, 1995 1,001,978
NEW MEXICO
1,250,000 New Mexico Severence Tax Refunding, Series A,
5.20%, due July 1, 1995 1,253,938
NORTH CAROLINA
1,000,000 Winston-Salem, North Carolina Water &
Sewer System Rev. (SBPA: Wachovia Bank NC),
Fltg. Rate, 4.10%, due June 1, 2014 1,000,000
OREGON
900,000 Clackamus Cnty., Oregon Hospital Facility
Auth. Rev. (Kaiser Permanente),
Series 84 (Optional Putable 4/1/95 @ 100),
3.85%, due April 1, 2014 900,000
400,000 Umatilla Cnty., Oregon Hospital Facility
Auth. Rev. (Franciscan Health System)
(LOC: Toronto-Dominion Bank), Fltg. Rate,
4.60%, due December 1, 2024 400,000
PENNSYLVANIA
600,000 Delaware Cnty., Pennsylvania Industrial Dev.
Auth. Solid Waste Rev. (Scott Paper), Series E
(LOC: National Westminster Bank), Fltg. Rate,
4.25%, due December 1, 2018 600,000
1,000,000 Pennsylvania Tax Anticipation Notes,
4.75%, due June 30, 1995 1,001,917
SOUTH CAROLINA
5,100,000 Charleston Cnty., South Carolina Industrial
Rev. (Massey Coal Terminal) (Shell Oil)
(Line: Morgan Guaranty Trust Co.), Fltg. Rate,
4.55%, due January 1, 2007 5,100,000
TEXAS
1,200,000 Angelina & Neches River Auth., Texas Industrial
Dev. Corp. Solid Waste Rev. (TEEC-Temple Inland),
Series 84 B (LOC: Credit Suisse Bank),
Fltg. Rate, 4.55%, due May 1, 2014 1,200,000
500,000 Angelina & Neches River Auth., Texas Industrial
Dev. Corp. Solid Waste Rev. (TEEC-Temple Inland),
Series 84 C (LOC: Credit Suisse Bank),
Fltg. Rate, 4.55%, due May 1, 2014 500,000
1,800,000 Angelina & Neches River Auth., Texas Industrial
Dev. Corp. Solid Waste Rev. (TEEC-Temple
Inland), Series 84 D (LOC: Credit Suisse Bank),
Fltg. Rate, 4.55%, due May 1, 2014 1,800,000
900,000 Calhoun Cnty., Texas Navigation Industrial Dev.
Auth. Pollution Control Rev.
(ALCOA), Series 87 (LOC: Credit Suisse Bank),
Fltg. Rate, 4.25%, due March 1, 2001 900,000
800,000 Grapevine, Texas Industrial Dev. Corp.
(American Airlines), Series A-1
(LOC: Morgan Guaranty Trust Co.), Fltg. Rate,
4.60%, due December 1, 2024 800,000
1,000,000 Houston, Texas Water & Sewer Tax-Exempt
Commercial Paper, Series A
(LOC: Swiss Bank Corp.; West Deutsch
Landesbank),
4.00%, due April 10, 1995 1,000,000
1,000,000 Lower Colorado River Auth., Texas Tax-Exempt
Commercial Paper, Series C (Line: Morgan
Guaranty Trust Co.),
4.00%, due April 25, 1995 1,000,000
1,300,000 North Central Texas Health Facility Dev.
Corp. Rev. (Presbyterian Medical Center)
(MBIA Insured) (SBPA: NationsBank NC),
Fltg. Rate, 4.60%, due December 1, 2015 1,300,000
1,800,000 North Central Texas Health Facility Dev. Corp.
Rev. (Presbyterian Medical Center)
(MBIA Insured), Series D (SBPA: NationsBank NC),
Fltg. Rate, 4.60%, due December 1, 2015 1,800,000
1,000,000 Texas Public Finance Auth. GO Tax-Exempt
Commercial Paper, Series 93 A,
3.75%, due April 5, 1995 1,000,000
2,000,000 Texas Public Finance Auth. GO Tax-Exempt
Commercial Paper, Series 93 A,
4.20%, due July 11, 1995 2,000,000
2,300,000 Texas Tax & Rev. Anticipation Notes,
5.00%, due August 31, 1995 2,302,939
1,500,000 Texas Tax & Rev. Anticipation Notes, Series 95,
5.00%, due August 31, 1995 1,505,280
1,000,000 Univ. of Texas Finance System Rev. Tax-Exempt
Commerical Paper (Permanent Univ. Fund),
Series A, 4.10%, due April 11, 1995 1,000,000
UTAH
1,500,000 Emery Cnty., Utah (Pacificorp) (LOC: Swiss Bank)
(Mandatory Redemption 4/6/95 @ 100),
3.80%, due July 1, 2015 1,500,000
1,000,000 Emery Cnty., Utah Pollution Control Rev.
(Pacificorp) (AMBAC Insured) (Line: Bank of
Nova Scotia), Fltg. Rate,
4.60%, due November 1, 2024 1,000,000
3,700,000 Intermountain Power Agency, Utah Power
Supply Rev., Series 85 F (SBPA: Bank of
America) (Optional Putable 9/15/95 @ 100),
4.15%, due July 1, 2015 3,700,000
2,300,000 Intermountain Power Agency, Utah Power
Supply Rev., Series 85 F (SBPA: Bank of
America) (Optional Putable 6/15/95 @ 100),
3.60%, due July 1, 2021 2,300,000
400,000 Salt Lake Cnty., Utah Pollution Control Rev.
Ref. (British Petroleum), Series B,
Fltg. Rate, 4.50%, due August 1, 2007 400,000
3,000,000 Salt Lake Cnty., Utah Pollution Control Rev.
Ref. (British Petroleum), Series A,
Fltg. Rate, 4.55%, due February 1, 2008 3,000,000
VERMONT
1,000,000 Vermont Educational & Health Buildings
Financing Agency Rev. (Middlebury College),
Series 88 A (Optional Putable 11/1/95 @ 100),
4.15%, due November 1, 2027 1,000,000
1,000,000 Vermont Educational & Health Buildings
Financing Agency Rev. (Middlebury College),
Series 88 A (Optional Putable 5/1/95 @ 100),
3.55%, due May 1, 2028 1,000,207
VIRGINIA
3,000,000 Chesterfield, Virginia Pollution Control
Rev. (Virginia Electric Power Co.),
Series 87 B (SBPA: Bank of New York)
(Mandatory Redemption 5/11/95 @ 100),
3.90%, due June 1, 2017 3,000,000
WASHINGTON
2,000,000 Washington Health Care Facilities Auth.
Rev. (Sisters of Providence),
Series B (Line: Morgan Guaranty Trust Co.),
Fltg. Rate, 4.60%, due October 1, 2005 2,000,000
1,400,000 Washington Health Care Facilities Auth. Rev.
(Sisters of Providence), Series C (Line:
Morgan Guaranty Trust Co.),
Fltg. Rate, 4.60%, due October 1, 2005 1,400,000
2,500,000 Washington Health Care Facilities Auth. Rev.
(Sisters of Providence), Series E (Line:
Morgan Guaranty Trust Co.),
Fltg. Rate, 4.60%, due October 1, 2005 2,500,000
4,855,000 Washington Public Power Supply System Nuclear
Project #1 Rev. Ref., Series 1A-1 (LOC:
Bank of America), Fltg. Rate,
4.20%, due July 1, 2017 4,855,000
WISCONSIN
3,400,000 Oak Creek, Wisconsin Pollution Control Rev.
(Wisconsin Electric Power Co.),
Series 86, Fltg. Rate, 4.20%,
due August 1, 2016 3,400,000
1,600,000 Sheboygan, Wisconsin Pollution Control Rev.
(Wisconsin Power & Light Co.),
Fltg. Rate, 4.15%, due August 1, 2014 1,600,000
WYOMING
2,000,000 Sweetwater Cnty., Wyoming Pollution Control
Rev. (Pacificorp.), Series A
(LOC: Union Bank of Switzerland),
4.25%, due July 1, 2015 2,000,000
TOTAL INVESTMENTS - 99.49% $ 132,602,535
Other assets less liabilities - 0.51% 685,583
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share; 1,000,000,000
shares of $0.01
par value capital shares authorized;
133,363,028 shares outstanding) $ 133,288,118
Line (Line of Credit)
LOC (Letter of Credit)
SBPA (Stand by Purchase Agreement)
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 Tax-Free 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.
