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, 1997
TO THE SHAREHOLDERS
Scout Tax-Free Money Market Fund earned 3.00% for the fiscal year ended June
30, 1997. The Fund's 7-day current yield on June 30, 1997, was 3.70%.
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.
Money markets spent the past year carefully watching the U.S. economy to gauge
the pace of growth and the potential for damaging inflation, all with an eye
toward anticipating possible Federal Reserve changes to interest rates.
Official data at times provided conflicting signals, prompting a wide-ranging
debate on the strength of the economy, direction of interest rates and likely
yields across the maturity spectrum. After maintaining a hands-off approach in
the second half of 1996, the Fed took action in March 1997 with a 0.25-point
increase to 5.50% in the key Federal Funds rate.
As the second quarter of 1997 ended, these earlier fears of growing
inflationary pressure from a strong economy were put to rest by data showing
little inflation and modest economic growth. Based on this data, and to the
surprise of almost nobody, the Fed again chose not to raise the Fed Funds rate
at its July meeting. The economy probably will not change much between now and
the August 19 Fed meeting, so the general view is that a rate increase still
is unlikely. A much clearer economic picture may be possible by the end of
September. If it appears that consumer spending is rebounding from its
lackluster second-quarter performance, a rate hike by the Fed again will be a
definite possibility.
In tax-exempt funds, there was extreme volatility in yields during the second
quarter because of changes in availability of short-term tax exempt
securities. As supply waned, short-term yields rose steadily. At the close of
the quarter, the yield curve inverted briefly and overnight rates moved
significantly above 90-day rates. The Fund gained handsome benefits throughout
this period because of its short average maturity, which we began to implement
in the first quarter. We have maintained this short maturity because of the
perceived threat of an increase in the Fed Funds rate. In recent weeks, the
evidence supporting a higher Fed Funds rate has begun to weaken. We will watch
closely for any consistent signs of economic weakness that in turn would
prompt a move to a longer average maturity.
We appreciate your continued interest in Scout Tax-Free Money Market Fund,
Inc., and we welcome your comments and questions.
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, 1997
<TABLE>
<CAPTION>
Face Market
State Amount Description Cost Value
</CAPTION>
<S> <C> <C>
ALABAMA
$ 8,000,000 Columbia Alabama Industrial Dev. Board, Series D,
Pollution Control Rev., (Alabama Power Co.),
Var. Rate, due October 1, 2022 $ 8,000,000 $ 8,000,000
ALASKA
525,000 Alaska State Housing Finance Corp., Series 1,
5.75%, due December 1, 2023 525,000 525,000
6,100,000 Valdez Alaska Marine Terminal (Exxon Pipeline Co.),
Var. Rate, due October 1, 2025 6,100,000 6,100,000
ARIZONA
2,200,000 Maricopa County Arizona (Southern California Edison ),
Tax-Exempt Commercial Paper,
3.55%, due August 1, 1997 2,200,000 2,200,000
1,000,000 Mesa Arizona, Municipal Development Auth., Series 85,
Tax-Exempt Commercial Paper,
3.75%, due July 3, 1997 1,000,000 1,000,000
1,200,000 Mesa Arizona, Municipal Development Corp., Series A,
Tax-Exempt Commercial Paper,
3.80%, due July 30, 1997 1,200,000 1,200,000
2,000,000 Mesa Arizona, Municipal Development Auth., Series 85,
Tax-Exempt Commercial Paper,
3.70%, due August 11, 1997 2,000,000 2,000,000
1,000,000 Salt River Project Agricultural Improvement &
Power District,
Arizona Tax-Exempt Commercial Paper,
3.70%, due August 1, 1997 1,000,000 1,000,000
4,000,000 Salt River Project Agricultural Improvement & Power District,
Arizona Tax-Exempt Commercial Paper,
3.80%, due August 20, 1997 4,000,000 4,000,000
2,350,000 Salt River Project Agricultural Improvement & Power District,
Arizona Tax-Exempt Commercial Paper,
3.75%, due October 1, 1997 2,350,000 2,350,000
FLORIDA
2,000,000 Jacksonville Florida, Electric Auth., Series D3,
Tax-Exempt Commercial Paper,
3.80%, due August 6, 1997 2,000,000 2,000,000
1,200,000 Jacksonville Florida, Pollution Control Rev., Series 94,
Tax-Exempt Commercial Paper,
3.80%, due August 5, 1997 1,200,000 1,200,000
GEORGIA
$ 6,000,000 Burke County Georgia, Pollution Control Rev.
(Georgia Power Co.),
Var. Rate, due July 1, 2024 6,000,000 6,000,000
8,270,000 Effingham County Georgia, Pollution Control Rev.
(Savannah Electric & Power),
Var. Rate, due April 1, 2037 8,270,000 8,270,000
2,000,000 Floyd County Georgia, Pollution Control Rev.
(Georgia Power Co. Plt. Hammond Project),
Var. Rate, due September 1, 2026 2,000,000 2,000,000
HAWAII
1,000,000 Hawaii State Housing Auth. (Tropicana West),
Var. Rate, due August 1, 2010 1,000,000 1,000,000
ILLINOIS
500,000 Sauget Illinois, Pollution Control Rev.
(Monsanto Co. Project),
Var. Rate, due September 1, 2014 500,000 500,000
3,000,000 Sauget Illinois, Pollution Control Rev.
(Monsanto Co. Project),
Var. Rate, due May 1, 2028 3,000,000 3,000,000
INDIANA
2,000,000 Jasper County Indiana, Pollution Control Rev.,
Tax- Exempt Commercial Paper,
3.90%, due July 8, 1997 2,000,000 2,000,000
1,000,000 Sullivan County Indiana, Pollution Control Rev.,
Series 85 L2,
Tax-Exempt Commercial Paper,
3.75%, due July 7, 1997 1,000,000 1,000,000
1,000,000 Sullivan County Indiana, Pollution Control Rev.,
Series 85 L2,
Tax-Exempt Commercial Paper,
3.85%, due July 14, 1997 1,000,000 1,000,000
4,000,000 Sullivan County Indiana, Pollution Control Rev.,
Series 85 L2,
Tax-Exempt Commercial Paper,
3.75%, due August 12, 1997 4,000,000 4,000,000
MARYLAND
2,764,000 Maryland Health Education Finance Auth. (John Hopkins),
Tax-Exempt Commercial Paper,
3.80%, due September 9, 1997 2,764,000 2,764,000
Massachusetts
$ 3,600,000 Massachusetts Bay Transportation Auth., Series C,
Tax-Exempt Commercial Paper,
3.70%, due July 21, 1997 3,600,000 3,600,000
3,000,000 Massachusetts Bay Transportation Auth., Series C,
Tax-Exempt Commercial Paper,
3.75%, due July 29, 1997 3,000,000 3,000,000
3,400,000 Massachusetts State, Series B,
Var. Rate, due December 1, 1997 3,400,000 3,400,000
7,200,000 Massachusetts State Industrial Finance Agency,
Pollution Control Rev. (New England Power),
Var. Rate, due October 1, 2022 7,200,000 7,200,000
3,700,000 Massachusetts State Health & Education Auth.
(Salem Hospital),
7.25%, due July 1, 2009 3,700,000 3,700,000
MICHIGAN
1,000,000 Michigan Strategic Fund, Series 86,
Tax-Exempt Commercial Paper,
3.50%, due July 3, 1997 1,000,000 1,000,000
MISSISSIPPI
6,900,000 Jackson County Mississippi, Port Facility Rev.
(Chevron USA),
Var. Rate, due June 1, 2023 6,900,000 6,900,000
MISSOURI
1,150,000 Columbia Missouri, Series A,
Var. Rate, due June 1, 2008 1,150,000 1,150,000
1,745,000 Kansas City Missouri, Water Rev.,
6.25%, due December 1, 2007 1,780,763 1,780,763
4,000,000 Missouri Environment Improvement Rev.,
Tax-Exempt Commercial Paper
3.65%, due July 8, 1997 4,000,000 4,000,000
900,000 Missouri State Health & Education Auth.
(Washington University), Series A,
Var. Rate, due September 1, 2030 900,000 900,000
500,000 Missouri State Health & Education Auth.
(Washington University), Series B,
Var. Rate, due September 1, 2030 500,000 500,000
1,200,000 Missouri State Health & Education Auth.
(Washington University), Series C,
Var. Rate, due September 1, 2030 1,200,000 1,200,000
2,300,000 Missouri State Health & Education Auth.
(Washington University), Series D,
Var. Rate, due September 1, 2030 2,300,000 2,300,000
1,200,000 St. Charles Missouri, Industrial Development Auth.,
Pollution Control Rev. (Monsanto Co.),
Var. Rate, due July 1, 2021 1,200,000 1,200,000
NEBRASKA
1,500,000 Omaha Public Power District Electric Rev., Series A,
Tax-Exempt Commercial Paper,
3.70%, due September 3,1997 1,500,000 1,500,000
SOUTH CAROLINA
1,300,000 York County South Carolina (Duke Power),
Tax-Exempt Commercial Paper,
3.75%, due July 3, 1997 1,300,000 1,300,000
1,000,000 York County South Carolina (Duke Power),
Tax-Exempt Commercial Paper,
3.70%, due July 30, 1997 1,000,000 1,000,000
TENNESSEE
1,000,000 Metro Government, Nashville Tennessee,
Tax-Exempt Commercial Paper,
3.80%, due July 9, 1997 1,000,000 1,000,000
1,500,000 Metro Government, Nashville Tennessee,
(Vanderbilt University) Tax-Exempt Commercial Paper,
3.65%, due July 10, 1997 1,500,000 1,500,000
1,000,000 Metro Government, Nashville Tennessee, Series A,
Tax-Exempt Commercial Paper,
3.85%, due August 26, 1997 1,000,000 1,000,000
TEXAS
2,700,000 Austin Texas Combined Utility Rev., Series A,
Tax-Exempt Commercial Paper,
4.00%, due July 7, 1997 2,700,000 2,700,000
1,100,000 Brazos River Auth. Texas (Monsanto Co.),
Var. Rate, due February 1, 2004 1,100,000 1,100,000
1,100,000 Brazos River Harbor Texas,
Industrial Development Corp. (Monsanto Co.),
Var. Rate, due March 1, 2021 1,100,000 1,100,000
1,000,000 Brazos River Harbor Texas,
Tax-Exempt Commercial Paper,
3.85%, due August 8, 1997 1,000,000 1,000,000
1,200,000 Dallas Texas, Tax-Exempt Commercial Paper,
3.75%, due August 21, 1997 1,200,000 1,200,000
900,000 Gulf Coast Texas Waste Disposal Auth. (Monsanto Co.),
Var. Rate, due July 1, 2001 900,000 900,000
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
6,400,000 Port Arthur Texas Naval District,
Pollution Control Rev. (Texaco Inc.),
Var. Rate, due October 1, 2024 6,400,000 6,400,000
2,000,000 Port Corpus Christi Texas Auth.,
Tax-Exempt Commercial Paper,
3.90%, due July 16, 1997 2,000,000 2,000,000
2,000,000 San Antonio Texas Water Systems, Series 95,
Tax-Exempt Commercial Paper,
3.75%, due July 2, 1997 2,000,000 2,000,000
1,000,000 San Antonio Texas Water Systems, Series 95,
Tax-Exempt Commercial Paper,
3.85%, due August 20, 1997 1,000,000 1,000,000
3,000,000 Southwest Higher Education Auth. Inc. Texas
(Southern Methodist University),
Var. Rate, due July 1, 2015 3,000,000 3,000,000
2,000,000 Texas Public Finance Auth., Series 93A,
Tax-Exempt Commercial Paper,
3.75%. due July 15, 1997 2,000,000 2,000,000
2,200,000 Texas Public Finance Auth., Series B,
Tax-Exempt Commercial Paper,
3.80%. due August 4, 1997 2,200,000 2,200,000
2,000,000 University of Texas University Fund, Series A,
Tax-Exempt Commercial Paper,
3.80%, due August 7, 1997 2,000,000 2,000,000
2,000,000 University of Texas Sys. Rev., Series A,
Tax-Exempt Commercial Paper,
3.75%, due July 7, 1997 2,000,000 2,000,000
1,520,000 University of Texas Sys. Rev., Series A,
Tax-Exempt Commercial Paper,
3.85%, due August 19, 1997 1,520,000 1,520,000
UTAH
$ 3,000,000 Intermountain Power, Series 85-3,
Tax-Exempt Commercial Paper,
3.80%, due July 9, 1997 3,000,000 3,000,000
2,000,000 Intermountain Power, Series 85-3,
Tax-Exempt Commercial Paper,
3.80%, due July 23, 1997 2,000,000 2,000,000
WASHINGTON
1,000,000 Seattle Municipal Power & Light,
Tax-Exempt Commercial Paper,
3.70%, due July 2, 1997 1,000,000 1,000,000
4,250,000 Seattle Municipal Power & Light,
Tax-Exempt Commercial Paper,
3.75%, due July 10, 1997 4,250,000 4,250,000
900,000 Seattle Municipal Power & Light Rev.,
Var. Rate, due November 1, 2018 900,000 900,000
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
TOTAL INVESTMENTS - 99.61% $ 161,709,763 161,709,763
Other assets less liabilities - 0.39% 639,153
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share; 1,000,000,000 shares of $0.01 par value
capital shares authorized; 162,448,744 shares outstanding) $ 162,348,916
See accompanying Notes to Financial Statements.
</TABLE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 1997
<TABLE>
<S> <C>
ASSETS:
Investment securities, at market value $ 161,709,763
Interest receivable 645,919
Total assets 162,355,682
LIABILITIES:
Disbursements in excess of demand deposit cash 6,766
Total liabilities 6,766
NET ASSETS $ 162,348,916
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 162,449,881
Accumulated net realized loss on investment transactions (100,965)
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 162,348,916
Capital shares, $0.01 par value
Authorized 1,000,000,000
Outstanding 162,448,744
NET ASSET VALUE PER SHARE $ 1.00
See accompanying Notes to Financial Statements.
</TABLE>
FINANCIAL STATEMENTS
Statement of Operations
Year Ended June 30, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Interest $ 4,528,852
Expenses: 643,126
Government fees 27,605
670,731
Net investment income 3,858,121
REALIZED LOSS ON INVESTMENTS:
Realized loss from investment transactions:
Proceeds from sales of investments 877,534,107
Cost of investments sold 877,557,280
Net realized loss from investment transactions (23,173)
Net increase in net assets resulting from operations $ 3,834,948
See accompanying Notes to Financial Statements.
</TABLE>
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
For The Years Ended June 30, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
</CAPTION>
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 3,858,121 $ 3,214,827
Net realized gain (loss) from investment transactions (23,173) 1,290
Net increase in net assets resulting from operations 3,834,948 3,216,117
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (3,858,121) (3,214,827)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ($1.00 per share) 349,106,370 264,590,658
Net asset value of shares issued for reinvestment of distributions
($1.00 per share) 350,045 265,245
349,456,415 264,855,903
Cost of shares redeemed ($1.00 per share) (315,092,608) (214,873,971)
Net increase in net assets from capital share transactions 34,363,807 49,981,932
Net increase in net assets 34,340,634 49,983,222
NET ASSETS:
Beginning of year 128,008,282 78,025,060
End of year $ 162,348,916 $ 128,008,282
See accompanying Notes to Financial Statements.
</TABLE>
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. 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.
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 June 30, 1997, the
Fund has an accumulated net realized loss on sale of investments for federal
income tax pur-poses of $100,965, 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, 1997, were as follows:
Other than
U.S. Government U.S. Government
Securities Securities
Purchases $ 912,392,934 $ -
Proceeds from sales 877,534,107 -
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 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.
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,
1997:
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993
</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 0.03 0.02 0.02
Distributions from:
Net investment income (0.03) 0.03) (0.03) (0.02) (0.02)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return 3% 3% 3% 2% 2%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 162 $ 128 $ 78 $ 94 $ 66
Ratio of expenses to average net assets 0.55% 0.52% 0.54% 0.53% 0.52%
Ratio of net investment income to average net assets 3.16% 3.13% 3.20% 2.06% 2.15%
See accompanying Notes to Financial Statements.
</TABLE>
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, 1997, and the related statement of operations, statements of changes
in net assets and the financial highlights for the periods indicated thereon
(periods presented prior to June 30, 1996 were audited by other independent
accountants whose reports thereon expressed unqualified opinions). These
financial statements and financial highlights are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits 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, 1997, 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 manage-
ment, as well as evaluating the overall financial statement presentation. We
believe that our audits provide 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, 1997, the results of its
operations, the changes in its net assets and the financial highlights for the
periods indicated in the first paragraph, in conformity with generally
accepted accounting principles.
BAIRD, KURTZ & DOBSON
Kansas City, Missouri
July 22, 1997
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.
Eric T. Jager
Stephen F. Rose
Stuart Wien
Officers
Larry D. Armel, President
P. Bradley Adams, Vice President & Treasurer
Elizabeth L. Allwood, Vice President
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 1-800-996-2862
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 161709763
<INVESTMENTS-AT-VALUE> 161709763
<RECEIVABLES> 645919
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 162355682
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6766
<TOTAL-LIABILITIES> 6766
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 162449881
<SHARES-COMMON-STOCK> 162448744
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (100965)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 162348916
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4528852
<OTHER-INCOME> 0
<EXPENSES-NET> 670731
<NET-INVESTMENT-INCOME> 3858121
<REALIZED-GAINS-CURRENT> (23173)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 3834948
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3858121
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 349106370
<NUMBER-OF-SHARES-REDEEMED> 315092608
<SHARES-REINVESTED> 350045
<NET-CHANGE-IN-ASSETS> 34340634
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 643126
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 670731
<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> .55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
