SCOUT
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.
Annual Report
June 30, 1996
TO THE SHAREHOLDERS
Scout Tax-Free Money Market Fund earned 3.11% for the fiscal year ended
June 30, 1996. The Fund's 7-day current yield on June 28, 1996 was
2.97%.
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. Income from the fund may be
subject to the federal Alternative Minimum Tax as well as state and
local taxes.
As noted in our last report, market psychology turned quite negative in
the first quarter, and a continuing stream of stronger than expected
economic reports during the second quarter reinforced the case for
higher interest rates. A strong employment report on July 5, two days
after the July Federal Open Market Committee (FOMC) meeting when the
Federal Reserve left interest rates unchanged, became the capstone of
the negative case and caused a major sell-off in the bond market. In
absolute price terms the long bond declined almost three points, its
fifth worst trading loss in the past nineteen years. The long bond
closed with a yield of 7.19% and for the first time this year the ten
year bond closed with a yield of over 7.00%.
Although the market has recovered significantly from these losses we
believe that until the Fed tightens or evidence of a slowing economy
appears, the markets will be subject to wide changes in yield.
The current consensus view is that the Fed will raise the Fed Funds rate
by at least 25 basis points and possibly 50 basis points on or before
the November FOMC meeting. We believe most money market instruments have
already priced in a 25 basis point move by the Fed and if they move by
this amount the market will simply adjust to another 25 basis point move
on or before their next meeting. For this reason we have consciously
kept the average life of the portfolio somewhat shorter than usual in
anticipation of higher rates later in the quarter.
We appreciate your continued interest in Scout Tax-Free Money Market
Fund.
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 or any other
applicable deposit insurance. These shares involve investment risks,
including the possible loss of the principal amount invested.
FINANCIAL STATEMENTS
Statement of Net Assets
June 30, 1996
<TABLE>
<CAPTION>
Face Market
State Amount Description Cost Value
</CAPTION>
<S> <C> <C> <C> <C>
ALABAMA
$ 6,700,000 Columbia Alabama Industrial Dev. Board,
Pollution Control Rev, (Alabama Power Co.),
Var. Rate, due October 1, 2022 $ 6,700,000 $ 6,700,000
ARIZONA
1,200,000 Maricopa County Arizona Pollution Control Rev.
(Arizona Public Service),
Var. Rate, due May 1, 2029 1,200,000 1,200,000
3,000,000 Maricopa County Arizona,
(Southern California Edison )
Tax-Exempt Commercial Paper,
3.60% due August 23, 1996 3,000,000 3,000,000
3,000,000 Salt River Project Agricultural
Improvement & Power District,
Arizona Tax-Exempt Commercial Paper,
3.55%, due September 3, 1996 3,000,000 3,000,000
1,000,000 Salt River Project Agricultural
Improvement & Power District,
Arizona Tax-Exempt Commercial Paper,
3.70%, due August 6, 1996 1,000,000 1,000,000
1,000,000 Tempe, Arizona G.O. (Pre-Refunding 7/1/96 @ 102),
7.40%, due July 1, 1997 1,020,000 1,020,000
2,200,000 Tucson, Arizona Street & Highway User Rev.
(Pre-Refunded 7/1/96 @ 102), Series C,
6.75%, due July 1, 2004 2,244,000 2,244,000
FLORIDA
1,000,000 Jacksonville, Florida Electric Rev.
Tax-Exempt Commercial Paper,
3.50% due September 4, 1996 1,000,000 1,000,000
1,000,000 Jacksonville, Florida G.O.
Tax-Exempt Commercial Paper,
3.50%, due August 5, 1996 1,000,000 1,000,000
1,000,000 Jacksonville, Florida Pollution
Control Rev. Series 94
Tax-Exempt Commercial Paper,
3.60%, due August 5, 1996 1,000,000 1,000,000
3,000,000 Jacksonville, Florida Tax-Exempt Commercial Paper,
3.45% due August 13, 1996 3,000,000 3,000,000
1,200,000 Palm Beach County, Florida Housing Finance Auth.
(Cotton Bay Apartments) Series D,
Var. Rate, due November 1, 2007 1,200,000 1,200,000
2,000,000 Palm Beach, Florida Tax-Exempt Commercial Paper,
3.50% due July 9, 1996 2,000,000 2,000,000
GEORGIA
3,900,000 Burke County, Georgia, Pollution Control Rev.
(Georgia Power Co.) Series 5,
Var. Rate due July 1, 2024 3,900,000 3,900,000
ILLINOIS
1,000,000 Chicago, Illinois O'Hare International
Airport Rev. Series A,
Var. Rate, due January 1, 2015 1,000,000 1,000,000
1,000,000 Illinois Educational Facilities Auth. Rev.
(National Louis University),
Var. Rate, due May 1, 2022 1,000,000 1,000,000
1,125,000 Joliet, Illinois Regional Port Dist.
(Dow Chemical) Industrial Building Rev.,
Var. Rate, due July 15, 2003 1,125,000 1,125,000
IOWA
6,500,000 Salix, Iowa Pollution Control Rev.
(Midwest Power Systems),
Var. Rate, due May 1, 2023 6,500,000 6,500,000
KANSAS
2,000,000 Kansas Department Of Transportation
Highway Rev., Series B,
Var. Rate, due September 1, 2014 2,000,000 2,000,000
3,000,000 Salina, Kansas Muni. Temp. Notes
(Magnolia Road), Series 1,
3.50%, due March 1, 1997 3,000,035 3,000,035
900,000 Wichita Kansas G.O. Bond,
6.75%, due December 1, 1996 911,306 911,306
LOUISIANA
5,000,000 Louisiana, State Recovery Dist. Sales Tax Rev.,
Var. Rate, due July 1, 1998 5,000,000 5,000,000
MASSACHUSETTS
4,500,000 Massachusetts Bay Transit Auth.
Tax-Exempt Commercial Paper,
3.70% due July 16, 1996 4,500,000 4,500,000
1,100,000 Massachusetts Industrial Finance Agency
(New England Power) Tax-Exempt Commercial Paper,
3.40% due July 9, 1996 1,100,000 1,100,000
MICHIGAN
2,000,000 Michigan State Note,
4.00%, due September 30, 1996 2,004,750 2,004,750
MINNESOTA
1,000,000 Rochester, Minnesota (Mayo Clinic)
Tax-Exempt Commercial Paper,
3.65%, due July 22, 1996 1,000,000 1,000,000
1,550,000 Rochester ,Minnesota (Mayo Clinic), Series C,
Tax-Exempt Commercial Paper,
3.60%, due August 8, 1996 1,550,000 1,550,000
1,500,000 Rochester, Minnesota (Mayo Clinic), Series C,
Tax-Exempt Commercial Paper,
3.65%, due August 14, 1996 1,500,000 1,500,000
1,100,000 Rochester, Minnesota (Mayo Clinic), Series E,
Tax-Exempt Commercial Paper,
3.55%, due August 20, 1996 1,100,000 1,100,000
1,300,000 Rochester, Minnesota (Mayo Clinic), Series E,
Tax-Exempt Commercial Paper,
3.65%, due August 14, 1996 1,300,000 1,300,000
MISSOURI
1,150,000 Columbia, Missouri Series A, Var. Rate,
due June 1, 2008 1,150,000 1,150,000
4,600,000 Missouri Environment Improvement Rev.
Tax-Exempt Commercial Paper
3.55%, due July 2, 1996 4,600,000 4,600,000
1,250,000 Missouri State G.O. Third State Building,
7.50%, due August 1, 2007 1,278,957 1,278,957
2,000,000 Missouri State Health & Education Auth.
(Sisters Of Saint Mary) Series C,
Var. Rate, due June 1, 2022 2,000,000 2,000,000
1,000,000 Missouri State Health & Education Auth.
(Washington University) Series B,
Var. Rate, due September 1, 2030 1,000,000 1,000,000
2,800,000 Missouri State Health & Education Auth.
(Washington University) Series C,
Var. Rate, due September 1, 2030 2,800,000 2,800,000
NORTH CAROLINA
2,600,000 Wake County, North Carolina
Industrial Facilities & Pollution Control
(Carolina Power & Light Co.) Series A,
Var. Rate, due May 1, 2015 2,600,000 2,600,000
2,700,000 Winston Salem, North Carolina Water
& Sewer System Rev.,
Var. Rate, due June 1, 2014 2,700,000 2,700,000
SOUTH CAROLINA
1,500,000 York County, South Carolina (Duke Power),
Tax-Exempt Commercial Paper,
3.45%, due July 29, 1996 1,500,000 1,500,000
2,000,000 York County, South Carolina (Duke Power),
Tax-Exempt Commercial Paper,
3.45%, due August 21, 1996 2,000,000 2,000,000
1,200,000 York County South Carolina (Duke Power),
Tax-Exempt Commercial Paper,
3.40%, due September 4, 1996 1,200,000 1,200,000
TEXAS
1,000,000 Austin, Texas Independent School Dist.
(Pre-Refunding 8/1/96 @ 100),
6.60 %, due August 1, 2021 1,002,480 1,002,480
1,400,000 Brazos River Authority Texas,
Pollution Control Rev.
(Monsanto Co. Project),
Var. Rate, due September 1, 2002 1,400,000 1,400,000
1,400,000 Dallas, Texas G.O. Tax-Exempt Commercial Paper,
3.65%, due September 5, 1996 1,400,000 1,400,000
500,000 Grapevine, Texas Industrial Dev. Auth.
(American Airlines) Series A-1,
Var. Rate, due December 1, 2024 500,000 500,000
400,000 Grapevine, Texas Industrial Dev. Auth.
(American Airlines) Series A-2,
Var. Rate, due December 1, 2024 400,000 400,000
800,000 Grapevine, Texas Industrial Dev. Auth.
(American Airlines) Series A-3,
Var. Rate, due December 1, 2024 800,000 800,000
1,400,000 Grapevine, Texas Industrial Dev. Auth.
(American Airlines) Series A-4,
Var. Rate, due December 1, 2024 1,400,000 1,400,000
1,100,000 Grapevine, Texas Industrial Dev. Auth.
(American Airlines) Series B-1,
Var. Rate, due December 1, 2024 1,100,000 1,100,000
800,000 Grapevine, Texas Industrial Dev. Auth.
(American Airlines) Series B-2,
Var. Rate, due December 1, 2024 800,000 800,000
1,700,000 Lower Neches Valley, Texas Auth.
Pollution Control Rev.
(River Treatment Industrial Dev. Corp.),
Var. Rate, due February 1, 2004 1,700,000 1,700,000
700,000 Port Arthur, Texas Naval Dist.
Pollution Control Rev.
(Texaco Inc.),
Var. Rate, due October 1, 2024 700,000 700,000
1,000,000 Texas A&M University Board of Regents Series B,
Tax-Exempt Commercial Paper,
3.55%, due July 8, 1996 1,000,000 1,000,000
4,000,000 Texas A&M University Board of Regents Series B,
Tax-Exempt Commercial Paper,
3.55%, due July 24, 1996 4,000,000 4,000,000
1,000,000 Texas A&M University Board of Regents Series B,
Tax-Exempt Commercial Paper,
3.45%, due July 30, 1996 1,000,000 1,000,000
1,000,000 Texas A&M University Board of Regents Series B,
Tax-Exempt Commercial Paper,
3.55%, due August 7, 1996 1,000,000 1,000,000
2,500,000 Texas Public Finance Auth., Series 93A,
Tax-Exempt Commercial Paper,
3.20%, due July 18, 1996 2,500,000 2,500,000
1,000,000 Texas Public Finance Auth.,
Tax-Exempt Commercial Paper,
3.65%, due July 10, 1996 1,000,000 1,000,000
1,500,000 Texas State Tax & Rev., Series A,
4.75%, due August 30, 1996 1,503,456 1,503,456
1,025,000 University of Texas Permanent Fund,
Tax-Exempt Commercial Paper,
3.60% due October 1, 1996 1,025,000 1,025,000
VIRGINIA
1,900,000 Fairfax County, Virginia Industrial Dev. Rev.
(Fairfax Hospital Association) Series A,
Var. Rate, due October 1, 2016 1,900,000 1,900,000
WASHINGTON
6,250,000 Seattle Power & Light,
Tax-Exempt Commercial Paper,
3.55%, due September 5, 1996 6,250,000 6,250,000
1,000,000 Seattle Power & Light,
Tax-Exempt Commercial Paper,
3.55%, due September 9, 1996 1,000,000 1,000,000
WISCONSIN
1,400,000 Oak Creek, Wisconsin Pollution Control Rev,
(Wisconsin Electric Power Co.),
Var. Rate, due August 1, 2016 1,400,000 1,400,000
1,600,000 Sheboygan, Wisconsin Pollution Control Rev.
(Wisconsin Power & Light Co.),
Var. Rate, due August 1, 2014 1,600,000 1,600,000
1,500,000 Sheboygan, Wisconsin Pollution Control Rev.
(Wisconsin Electric Power Co.),
Var. Rate, due September 1, 2015 1,500,000 1,500,000
WYOMING
1,200,000 Lincoln County, Wyoming Pollution
Control Rev. (Exxon Co.),
Var. Rate, due August 1, 2015 1,200,000 1,200,000
TOTAL INVESTMENTS - 99.81% $ 127,764,984 $ 127,764,984
Other assets less liabilities - 0.19% 243,298
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share;
1,000,000,000 shares of $0.01 par value
capital shares authorized;
128,084,937 shares outstanding) $ 128,008,282
</TABLE>
Line (Line of Credit)
LOC (Letter of Credit)
SBPA (Stand by Purchase Agreement)
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 1996
ASSETS:
Investment securities, at market value $ 127,764,984
Cash 938,542
Interest receivable 719,065
Total assets 129,422,591
LIABILITIES AND NET ASSETS:
Securities purchased payable 1,403,175
Federal funds 11,134
Total liabilities 1,414,309
NET ASSETS $ 128,008,282
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 128,086,074
Accumulated net realized loss
on investment transactions (77,792)
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 128,008,282
Capital shares, $0.01 par value
Authorized 1,000,000,000
Outstanding 128,084,937
NET ASSET VALUE PER SHARE $ 1.00
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Operations
Year Ended June 30, 1996
INVESTMENT INCOME:
Income:
Interest $ 3,751,451
Expenses:
Management fees 525,467
Government fees 11,157
536,624
Net investment income 3,214,827
REALIZED gain ON INVESTMENTS:
Realized gain from investment transactions:
Proceeds from sales of investments 485,528,290
Cost of investments sold 485,527,000
Net realized gain from
investment transactions 1,290
Increase in net assets
resulting from operations $ 3,216,117
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
For The Two Years Ended June 30, 1996
1996 1995
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 3,214,827 $ 3,192,068
Net realized gain from
investment transactions 1,290 (26,431)
Net increase in net assets
resulting from operations 3,216,117 3,165,637
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (3,214,827) (3,192,068)
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold
($1.00 per share) 264,590,658 215,514,530
Net asset value of shares issued for
reinvestment of distributions
($1.00 per share) 265,245 254,641
264,855,903 215,769,171
Cost of shares redeemed
($1.00 per share) (214,873,971) (232,004,231)
Net increase (decrease) from
capital share transactions 49,981,932 (16,235,060)
Total increase (decrease)
in net assets 49,983,222 (16,261,491)
NET ASSETS:
Beginning of year 78,025,060 94,286,551
End of year $ 128,008,282 $ 78,025,060
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. 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
provided. At June 30, 1996, the Fund has an accumulated net realized
loss on sale of investments for federal income tax purposes of $77,792,
which is 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 year ended June 30, 1996, were as follows:
Other than
U.S. Government U.S. Government
Securities Securities
Purchases $ 537,340,313 $ -
Proceeds from sales 485,528,290 -
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 BankOs 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.
FINANCIAL HIGHLIGHTS
The following table sets forth information as to capital and income
changes for a share outstanding for each of the five years in the
period ended June 30, 1996:
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992
</CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income 0.03 0.03 0.02 0.02 0.03
Less distributions:
Dividends from net
investment income (0.03) (0.03) (0.02) (0.02) (0.03)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 3% 3% 2% 2% 3%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 128 $ 78 $ 94 $ 66 $ 77
Ratio of expenses to average net assets 0.52% 0.54% 0.53% 0.52% 0.52%
Ratio of net investment income
to average net assets 3.13% 3.20% 2.06% 2.15% 3.32%
</TABLE>
See accompanying Notes to Financial Statements.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors of Scout Tax-Free Money
Market Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of
Scout Tax-Free Money Market Fund, Inc., including the statement of net
assets, as of June 30, 1996, and the related statement of operations,
statement of changes in net assets and the financial highlights for the
most recent period presented (prior periods presented were audited by
other independent accountants whose reports thereon expressed
unqualified opinions). These financial statements and financial
highlights are the responsibility of the CompanyOs management. Our
responsibility is to express an opinion on these financial statements
and financial highlights based on our audit.
We conducted our audit 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, 1996 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides 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 Tax-Free Money Market Fund, Inc. as of June
30, 1996, the results of its operations, the changes in its net assets
and the financial highlights for the period indicated in the first
paragraph, in conformity with generally accepted accounting principles.
BAIRD, KURTZ & DOBSON
Kansas City, Missouri
July 23, 1996
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.
This page left blank intentionally.
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
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
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
Investment Counsel
UMB Bank, n.a., Kansas City, Missouri
Auditors
Geo. S. Olive & Co. LLC, Evansville, Indiana
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
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
Scout Tax-Free Fund, Inc.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 127764984
<INVESTMENTS-AT-VALUE> 127764984
<RECEIVABLES> 719065
<ASSETS-OTHER> 938542
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 129422591
<PAYABLE-FOR-SECURITIES> 1403175
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11134
<TOTAL-LIABILITIES> 1414309
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 128086074
<SHARES-COMMON-STOCK> 128084937
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (77792)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 128088282
<DIVIDEND-INCOME> 3751451
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 536624
<NET-INVESTMENT-INCOME> 3214827
<REALIZED-GAINS-CURRENT> 1290
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 3216117
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3214827
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 264590658
<NUMBER-OF-SHARES-REDEEMED> 214873971
<SHARES-REINVESTED> 265245
<NET-CHANGE-IN-ASSETS> 49981932
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 525467
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 536624
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .03
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .52
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
