SCOUT TAX-FREE MONEY MARKET FUND, INC.
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.
Quarterly Report
March 31, 1996
TO THE SHAREHOLDERS
Scout Tax-Free Money Market Fund earned 0.72% for the
quarter ended March 31, 1996. The Fund's 7-day current yield
as of March 29, 1996 was 2.98%.
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.
A dramatic reversal of economic outlook and market
psychology took place during the first quarter of 1996. The
market reacted strongly to various economic reports
suggesting a growing economy versus pervious predictions of
a weakening economy and continued Fed easing. Anticipation
of further rate cuts by the Fed evaporated almost overnight
as fears of Fed tightening increased. Unfortunately, this
change in the marketOs philosophy resulted in the worst
quarter for the bond market since the first quarter of 1994.
While we believe that these fears are overblown, we intend
to pay them adequate respect by maintaining a relatively
short average life in the Fund between twenty five and
thirty five days.
For money market instruments the most significant change was
a return to a positive yield curve rather than an inverted
yield curve. For the first time in awhile a premium was paid
to the investor who had extended maturities. But as we noted
earlier, we do not believe that the current environment
warrants extending maturities to any appreciable degree.
We appreciate your continued interest in Scout Tax-Free
Money Market Fund.
Sincerely,
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
March 31, 1996
Principal Market
State Amount Description Value
Alabama
$ 1,000,000 Columbia, Alabama Industrial Dev. Board,
Pollution Control Rev. Ref.
(Alabama Power Co.), Series D,
Fltg. Rate, due October 1, 2022 $ 1,000,000
Arizona
1,000,000 Salt River Project, Agricultural Improvement
& Power Dist.,
Arizona Tax-Exempt Commercial Paper (LOC:
Union Bank of Switzerland)
3.25%, due April 11, 1996 1,000,000
2,420,000 Salt River Project, Agricultural Improvement
& Power Dist.,
Arizona Tax-Exempt Commercial Paper (LOC:
Union Bank of Switzerland)
3.10%, due May 13, 1996 2,420,000
1,000,000 Tempe, Arizona G.O. Pre-Refunding, 7/1/96 @
102, 7.40%, due July 1, 1997 1,029,270
2,200,000 Tucson, Arizona Street & Highway User Rev.
General Market Bond,
6.75%, due July 1, 2004 2,262,324
Colorado
4,000,000 Denver, Colorado City & Cnty. Rev. (Childerns
Hospital Assn.),
Fltg. Rate, due October 1, 2018 4,000,000
Connecticut
600,000 Connecticut Economic Recovery Notes Series B
(SBPA: National Westminster Bank;
Canadian Imperial Bank of Commerce;
Industrial Bank of Japan),
Fltg. Rate, due June 1, 1996 600,000
Florida
1,000,000 Jacksonville, Florida Electric, 3.30%, due
April 25, 1996 1,000,000
1,000,000 Jacksonville, Florida Power & Light Tax-
Exempt Commercial Paper,
3.20%, due April 8, 1996 1,000,000
1,000,000 Jacksonville, Florida Tax-Exempt Commercial
Paper,
3.05%, due April 3, 1996 1,000,000
2,000,000 Palm Beach County, Florida Credit Suisse
(Mbia) Tax-Exempt Commercial Paper,
3.30%, due April 4, 1996 2,000,000
5,750,000 Sarasota, Florida Public Hospital District
Tax-Exempt Commercial Paper,
3.75%, due April 1, 1996 5,750,000
3,500,000 University of Florida (Sun Bank), Fltg. Rate,
due February 1, 2020 3,500,000
Georgia
1,200,000 Burke County, Georgia Dev. Auth. Pollution
Control Rev. (Georgia Power Co.), Series 5,
Fltg. Rate, due July 1, 2024 1,200,000
1,000,000 Georgia G.O., Series B, 7.60%, due April 1, 1996 1,000,000
Illinois
1,000,000 Illinois Education Facilities Auth. Rev.
(National Louis University),
Fltg. Rate, due May 1, 2022 1,000,000
3,000,000 State of Illinois, Rev. Anticipation General
Market Note,
4.50%, due April 12, 1996 3,000,761
Iowa
3,000,000 Muscatine Co. G.O., Iowa Pollution Control
Rev. Ref. (Monsanto Co.),
Fltg. Rate, due October 1, 2007 3,000,000
Kansas
2,000,000 Kansas Department of Transportation Highway
Rev., Bonds Series 94b,
Fltg. Rate, due September 1, 2014 2,000,000
3,000,000 Salina, Kansas Muni Temp Notes (Magnolia
Road), Series 1,
3.50%, due March 1, 1997 3,000,048
900,000 Wichita, Kansas G.O. Bond, 6.75%, due
December 1, 1996 918,029
Louisiana
5,800,000 Louisiana State Recovery District Sales Tax
Rev., SBPA,
Fltg. Rate, due July 1, 1998 5,800,000
Maryland
7,000,000 Maryland Health & Education (John Hopkins)
Tax-Exempt Commercial Paper,
3.70%, due April 3, 1996 7,000,000
Massachusetts
7,000,000 Commonwealth of Massachusetts Tax-Exempt
Commercial Paper,
3.60%, due April 2, 1996 7,000,000
2,000,000 Massachusetts Industrial Rev. Auth. Tax-
Exempt Commercial Paper,
3.05%, due April 9, 1996 2,000,000
2,500,000 Massachusetts Bay Transit Auth. Tax-Exempt
Commercial Paper,
3.50%, due May 9, 1996 2,500,000
1,700,000 Massachusetts Industrial Dev. Auth. (New
England Power & Light Co.)
Tax-Exempt Commercial Paper,
3.25%, due April 9, 1996 1,700,000
Michigan
1,500,000 Delta Co., Michigan Industrial Dev. Auth.
(Mead Project),
(LOC: Suisse Bank), Tax-Exempt Commercial
Paper, 3.10%, due May 2, 1996 1,500,000
2,000,000 Michigan State Note,
4.00%, due September 30, 1996 2,009,499
Minnesota
1,000,000 Rochester, Minnesota (Mayo Clinic) Tax-Exempt
Commercial Paper,
3.10%, due May 9, 1996 1,000,000
1,500,000 Rochester, Minnesota (Mayo Clinic) Tax-Exempt
Commercial Paper,
3.10%, due May 14, 1996 1,500,000
1,300,000 Rochester, Minnesota (Mayo Clinic) Tax-Exempt
Commercial Paper, Series E,
3.10%, due May 14, 1996 1,300,000
1,550,000 Rochester, Minnesota (Mayo Clinic) Tax-Exempt
Commercial Paper, Series B,
3.15%, due May 22, 1996 1,550,000
1,100,000 Rochester, Minnesota (Mayo Clinic) Tax-Exempt
Commercial Paper, Series E,
3.15%, due May 22, 1996 1,100,000
Mississippi
3,000,000 Jackson Co., Mississippi Pollution Control
Rev. (Chevron USA, Inc.),
Fltg. Rate, due December 1, 2016 3,000,000
Missouri
2,000,000 Missouri State Health & Education Facilities,
Sisters of Saint Mary, Series C,
Fltg. Rate, due June 1, 2022 2,000,000
1,600,000 Missouri State Health & Education Facilities,
Washington University, Series A,
Fltg. Rate, due September 1, 2030 1,600,000
4,800,000 Missouri State Health & Education Facilities,
Washington University, Series C,
Fltg. Rate, due September 1, 2030 4,800,000
1,000,000 Missouri Environment Improvement Rev. Tax-
Exempt Commercial Paper,
3.30%, due April 2, 1996 1,000,000
1,900,000 Missouri Environment Improvement Rev. Tax-
Exempt Commercial Paper,
3.05%, due April 3, 1996 1,900,000
1,000,000 Missouri Environment Improvement Rev. Tax-
Exempt Commercial Paper,
3.25%, due April 3, 1996 1,000,000
1,200,000 Missouri Environment Improvement Rev. Tax-
Exempt Commercial Paper,
3.20%, due May 7, 1996 1,200,000
1,250,000 Missouri G.O., Third State Building (Pre-
Refunded 8/1/96 @ 102)
7.50%, due August 1, 2007 1,290,573
2,000,000 University of Missouri Capital Projects,
Series FY Note,
4.75%, due June 28, 1996 2,006,587
Nebraska
1,000,000 Omaha Public Power District Tax-Exempt
Commercial Paper,
3.25%, due May 1, 1996 1,000,000
North Carolina
2,000,000 Wake Co., North Carolina, Carolina Power &
Light
Tax-Exempt Commercial Paper,
3.45%, due April 2, 1996 2,000,000
2,600,000 Wake Co., North Carolina, Carolina Power &
Light, Series A,
Fltg. Rate, due May 1, 2015 2,600,000
2,700,000 Winston Salem, North Carolina Water and Sewer
System Rev.,
Fltg. Rate, due June 1, 2014 2,700,000
South Carolina
2,500,000 York County, South Carolina (Duke Power) Tax-
Exempt Commercial Paper,
3.25%, due April 17, 1996 2,500,000
1,000,000 York County, South Carolina (Duke Power) Tax-
Exempt Commercial Paper,
3.25%, due April 30, 1996 1,000,000
Texas
1,000,000 Austin, Texas School Dist., (Pre-Refunded
8/1/96 @ 100),
6.60%, due August 1, 2001 1,009,760
1,400,000 Dallas, Texas G.O. Tax-Exempt Commercial
Paper,
3.50%, due April 4, 1996 1,400,000
1,015,000 Dallas Co., Texas Hospital Dist. Rev.,
(MBIA Insured), (Pre-Funded 4/10/96 @ 100),
7.00%, due April 10, 1999 1,015,773
400,000 Grapevine, Texas Industrial Dev. Auth.
(American Airlines), Series A-2,
Fltg. Rate, due December 1, 2024 400,000
400,000 Grapevine,Texas Industrial Dev. Auth.
(American Airlines), Series A-3,
Fltg. Rate, due December 1, 2024 400,000
1,400,000 Grapevine, Texas Industrial Dev. Auth.
(American Airlines), Series A-4,
Fltg. Rate, due December 1, 2024 1,400,000
1,100,000 Grapevine, Texas Industrial Dev. Auth.
(American Airlines), Series B-1,
Fltg. Rate, due December 1, 2024 1,100,000
1,500,000 Texas A & M University Tax-Exempt Commercial
Paper,
3.05%, due April 8, 1996 1,500,000
1,500,000 Texas A & M University Tax-Exempt Commercial
Paper,
3.25%, due April 23, 1996 1,500,000
1,000,000 Texas State Public Finance Auth. Tax-Exempt
Commercial Paper,
3.20%, due May 8, 1996 1,000,000
2,500,000 Texas Public Finance Auth. Tax-Exempt
Commercial Paper,
3.20%, due July 18, 1996 2,500,000
1,500,000 Texas State Tax & Rev., Series A ,4.75%, due
August 30, 1996 1,508,697
1,025,000 University of Texas Tax-Exempt Commercial
Paper,
3.20%, due April 2, 1996 1,025,000
Utah
1,000,000 Intermountain Power Agency, Utah Power Supply
Rev., Series H,
6.00%, due July 1, 2021 1,004,019
Vermont
2,000,000 Vermont State Tax-Exempt Commercial Paper,
3.30%, due June 5, 1996 2,000,000
Virginia
3,000,000 Commonwealth of Virginia Tax-Exempt
Commercial Paper,
3.60%, due April 1, 1996 3,000,000
4,300,000 Fairfax, Virginia Tax-Exempt Commercial
Paper,
3.30%, due April 1, 1996 4,300,000
Washington
3,850,000 Seattle Power & Light Tax-Exempt Commercial
Paper,
3.20%, due May 2, 1996 3,850,000
1,000,000 Seattle Power & Light Tax-Exempt Commercial
Paper,
3.20%, due May 6, 1996 1,000,000
Wisconsin
1,400,000 Oak Creek, Wisconsin Pollution Control Rev.
(Wisconsin Electric Power Co. Project),
Fltg. Rate, due August 1, 2016 1,400,000
1,600,000 Sheboygan, Wisconsin Pollution Control Rev.
Control Rev.
(Wisconsin Power & Light Co.),
Fltg. Rate, due August 1, 2014 1,600,000
1,500,000 Sheboygan, Wisconsin Pollution Control Rev.
(Wisconsin Power & Light Co.),
Fltg. Rate, due September 1, 2015 1,500,000
TOTAL INVESTMENTS 98.54% $ 144,650,340
Other assets less liabilities 1.46% 2,148,764
TOTAL NET ASSETS 100.00%
(equivalent to $1.00 per share; 1,000,000,000 shares of
$0.01 par value
capital shares authorized; 146,875,764.040 shares
outstanding) $ 146,799,104
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.
BOARD OF DIRECTORS AND OFFICERS
Board of Directors
Larry D. Armel
William E. Hoffman, D.D.S.
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
Jack G. Dyer, Vice President
Manager and Investment Counsel
UMB Bank, n.a., 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
