Scout SM
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.
Quarterly Report
March 31, 1998
TO THE SHAREHOLDERS
Scout Tax-Free Money Market Fund earned 0.23% for the quarter ended
March 31, 1998. The Fund's 7-day current yield on March 31, 1998, was
2.94%.
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.
The Fund finished the quarter with a 30-day yield of 2.75%, versus a
2.79% average for the tax-free money market overall. Market yields were
down markedly from the 3.28% recorded at the end of the fourth quarter
of 1997. The drop in rates was due to a combination of large investor
deposits (presumably in anticipation of tax season) and a shortage of
short-term bonds.
In the first quarter the market anticipated an easing in the Fed Funds
target rate. In our opinion, first-quarter economic releases presented a
mixture of information that does not point clearly to a rate move by the
Federal Reserve in either direction.
We are pleased that our investment strategies are delivering market-
matching performance while maintaining what we believe to be a
substantially higher level of credit quality. We will maintain a
moderate average maturity in the 15- to 25-day range, in keeping with
our reluctance to make predictions on the direction of interest rates.
This management style should continue to make the Fund an outstanding
option for investors in the upper tax brackets who seek solid yields
combined with top-tier credit quality.
We appreciate your continued interest in the Scout Tax-Free Money Market
Fund and we welcome your comments and questions.
Chart - Fund Diversification
Commercial Paper 65%
Demand Notes 35%
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 ("FDIC").
These shares involve investment risks, including the possible loss of
the principal invested.
FINANCIAL STATEMENTS
Statement of Net Assets
March 31, 1998 (unaudited)
Principal Market
State Amount Description Value
ALABAMA
$ 6,700,000 Columbia Alabama Industrial Dev. Board,
Pollution Control Rev.
(Alabama Power Co.),
Series D,
Var. Rate, due October 1, 2022 $ 6,700,000
ALASKA
1,000,000 Valdez Alaska Marine Terminal,
(Exxon Pipeline Co.),
Var. Rate, due October 1, 2025 1,000,000
ARIZONA
2,200,000 Maricopa County Arizona
(Southern California Edition),
Tax-Exempt Commercial Paper,
3.30%, May 13, 1998 2,200,000
1,000,000 Maricopa County Arizona
(Southern California Edition),
Tax-Exempt Commercial Paper,
3.30%, May 19, 1998 1,000,000
2,350,000 Salt River Project Agricultural
Improvement & Power District,
Arizona Tax-Exempt Commercial Paper,
3.10%, due April 2, 1998 2,350,000
2,000,000 Salt River Project Agricultural
Improvement & Power District,
Arizona Tax-Exempt Commercial Paper,
3.35%, due May 1, 1998 2,000,000
FLORIDA
3,500,000 Gainesville Florida Utility Systems,
Series C,
Tax-Exempt Commercial Paper,
3.20%, due April 3, 1998 3,500,000
3,000,000 Jacksonville Florida Electric Auth.,
Series 94A,
Tax-Exempt Commercial Paper,
3.25%, due April 24, 1998 3,000,000
1,000,000 Jacksonville Florida
Pollution Control Rev.,
Series 92,
Tax-Exempt Commercial Paper,
3.25%, due April 2, 1998 1,000,000
1,000,000 Jacksonville Florida
Pollution Control Rev.,
Series 94A,
Tax-Exempt Commercial Paper,
3.25%, due April 22, 1998 1,000,000
1,100,000 Jacksonville Florida
Pollution Control Rev.,
Series 92,
Tax-Exempt Commercial Paper,
3.30%, due May 12, 1998 1,100,000
GEORGIA
2,500,000 Burke County Georgia,
Pollution Control Rev.
(Georgia Power Co.),
Var. Rate, due July 1, 2024 2,500,000
3,000,000 Burke County Georgia,
Pollution Control Rev.
(Georgia Power Co. Plant Vogtle Project),
Var. Rate, due July 1, 2024 3,000,000
6,000,000 Effingham County Georgia,
Pollution Control Rev.
(Savannah Electric & Power),
Var. Rate, due April 1, 2037 6,000,000
ILLINOIS
1,500,000 Illinois Development Finance Auth.,
Pollution Control Revenue
(Amoco Oil Company Project),
Var. Rate, due November 1, 2012 1,500,000
500,000 Sauget Illinois,
Pollution Control Rev.
(Monsanto Co. Project),
Var. Rate, due September 1, 2014 500,000
3,000,000 Sauget Illinois,
Pollution Control Rev.
(Monsanto Co. Project),
Var. Rate, due May 1, 2028 3,000,000
INDIANA
1,000,000 Hammon Indiana,
Pollution Control Rev.
(Amoco Oil Company),
Var. Rate, due February 1, 2022 1,000,000
900,000 Rockport Indiana,
Pollution Control Rev.
(AEP Generating Co.),
Var. Rate, due July 1, 2025 900,000
3,000,000 Sullivan City Indiana,
Pollution Control Rev.,
Series 85 L3,
Tax-Exempt Commercial Paper,
3.30%, due May 6, 1998 3,000,000
KANSAS
1,000,000 Burlington Kansas,
Pollution Control Rev.,
Series 85 C-1,
Tax-Exempt Commercial Paper,
3.25%, due April 22, 1998 1,000,000
KENTUCKY
2,000,000 County of Trimble Kentucky
(Louisville Gas/Electric Company),
Tax-Exempt Commercial Paper,
3.25%, due May 4, 1998 2,000,000
LOUISIANA
1,500,000 St. Charles Parish Louisiana,
Pollution Control Rev. (Shell Oil),
Series B,
Var. Rate, due October 1, 2002 1,500,000
1,300,000 West Baton Rouge Parish Louisiana,
Industrial District #3 (Dow Chemical),
Series B,
Var. Rate, due December 1, 2016 1,300,000
MARYLAND
1,000,000 Ann Arundal County, Maryland, G. O.,
Series B,
3.40%, due May 15, 1998 1,000,000
1,200,000 Baltimore County, Maryland,
G. O., Series 95,
Tax-Exempt Commercial Paper,
3.30%, due April 6, 1998 1,200,000
3,000,000 Baltimore County, Maryland,
Pollution Control Rev. (BG&E),
Tax-Exempt Commercial Paper,
3.30%, due April 7, 1998 3,000,000
MASSACHUSETTS
1,500,000 Massachusetts Bay Trans. Auth.
Series C,
Tax-Exempt Commercial Paper,
3.45%, due April 7, 1998 1,500,000
2,900,000 Massachusetts State Health &
Education Auth. (Amherst College),
Series F,
Var. Rate, due November 1, 2026 2,900,000
MINNESOTA
1,000,000 Becker Minnesota,
Pollution Control Rev.
(North States Power),
Tax-Exempt Commercial Paper,
3.55%, due May 19, 1998 1,000,000
MISSOURI
550,000 Missouri Environment Improvement Rev.
Tax-Exempt Commercial Paper,
3.50%, due April 6, 1998 550,000
2,000,000 Missouri Environment Improvement Rev.
Tax-Exempt Commercial Paper,
3.40%, due April 9, 1998 2,000,000
2,000,000 Missouri Environment Improvement Rev.
Tax-Exempt Commercial Paper,
3.30%, due April 28, 1998 2,000,000
1,000,000 Missouri Environmental Resource Auth.,
Pollution Control Rev., (Monsanto Co),
Var. Rate, due June 1, 2023 1,000,000
900,000 Missouri State Health & Education Auth.
(Washington University),
Series A,
Var. Rate, due September 1, 2030 900,000
500,000 Missouri State Health & Education Auth.
(Washington University),
Series B,
Var. Rate, due September 1, 2030 500,000
1,200,000 St. Charles Missouri,
Industrial Development Auth.,
Pollution Control Rev. (Monsanto Co.),
Var. Rate, due July 1, 2021 1,200,000
NEBRASKA
1,100,000 Nebraska Public Power District,
Series B,
Tax-Exempt Commercial Paper,
3.30%, due April 7, 1998 1,100,000
2,500,000 Nebraska Public Power District,
Series B,
Tax-Exempt Commercial Paper,
3.30%, due May 7, 1998 2,500,000
2,500,000 Nebraska Public Power District,
Series B,
Tax-Exempt Commercial Paper,
3.35%, due May 11, 1998 2,500,000
3,000,000 Omaha Public Power District Electric Rev.,
Series A,
Tax-Exempt Commercial Paper,
3.10%, due April 3, 1998 3,000,000
1,000,000 Omaha Public Power District Electric Rev.,
Series A,
Tax-Exempt Commercial Paper,
3.65%, due May 1, 1998 1,000,000
3,650,000 Omaha Public Power District Electric Rev.,
Series A,
Tax-Exempt Commercial Paper,
3.35%, due May 14, 1998 3,650,000
NEW JERSEY
1,500,000 New Jersey Economic Dev. Auth.
(Toys `R' Us),
Var. Rate, due April 1, 2019 1,500,000
1,800,000 New Jersey T/RAN,
Series 98A,
3.375%, due April 6, 1998 1,800,000
1,500,000 New Jersey T/RAN,
Series 98A,
3.20%, due April 9, 1998 1,500,000
NORTH CAROLINA
2,500,000 Wake County North Carolina,
Industiral Fac. &
Pollution Control Auth.
(Carolina Power & Light),
Series A,
Var. Rate, due May 1, 2015 2,500,000
OKLAHOMA
500,000 Garfield County Oklahoma
Industrial Dev. Auth.,
Pollution Control Rev.
(Oklahoma Gas & Electric),
Var. Rate,
Series A, due January 1, 2025 500,000
SOUTH CAROLINA
2,100,000 York County South Carolina (Duke Energy),
Tax-Exempt Commercial Paper,
3.35%, due April 6, 1998 2,100,000
3,500,000 York County South Carolina (Duke Energy),
Tax-Exempt Commercial Paper,
3.30%, due April 27, 1998 3,500,000
TENNESSEE
1,000,000 Metro Government Nashville Tennessee,
Series 89A,
Tax-Exempt Commercial Paper,
3.25%, due May 5, 1998 1,000,000
2,000,000 Shelby County Tennessee,
Series 97A,
Tax Exempt Commercial Paper,
3.45%, due May 5, 1998 2,000,000
4,000,000 Shelby County Tennessee,
Series 97A,
Tax Exempt Commercial Paper,
3.30%, due May 14, 1998 4,000,000
TEXAS
1,500,000 Austin Texas Combined Utility
Series A,
Tax-Exempt Commercial Paper,
3.10%, due April 1, 1998 1,500,000
2,747,000 Austin Texas Combined Utility
Series A,
Tax-Exempt Commercial Paper,
3.25%, due April 23, 1998 2,747,000
1,950,000 Austin Texas Combined Utility
Series A,
Tax-Exempt Commercial Paper,
3.40%, due May 4, 1998 1,950,000
1,850,000 Austin Texas Combined Utility
Series A,
Tax-Exempt Commercial Paper,
3.30%, due May 13, 1998 1,850,000
1,100,000 Brazos River Auth. Texas
(Monsanto Co.),
Var. Rate, due February 1, 2004 1,100,000
1,100,000 Brazos River Harbor Texas,
Industrial Development Corporation
(Monsanto Co.),
Var. Rate, due March 1, 2021 1,100,000
3,000,000 El Paso Texas, Water & Sewer Rev.,
Series A,
Tax-Exempt Commercial Paper,
3.375%, due April 3, 1998 3,000,000
900,000 Gulf Coast Texas Waste Disposal Auth.
(Monsanto Co.),
Var. Rate, due July 1, 2001 900,000
2,668,000 Harris County Texas,
Series A,
Tax-Exempt Commercial Paper,
3.20%, due April 1, 1998 2,668,000
1,700,000 Lower Neches Valley Texas Auth.,
Pollution Control Rev.
(River Treatment Industrial Dev. Corp.),
Var. Rate, due February 3, 2004 1,700,000
1,850,000 Northside Texas Independent School District,
Tax-Exempt Commercial Paper,
9.40%, due April 1, 1998 1,850,000
1,100,000 Port Arthur Texas Naval District,
Pollution Control Rev. (Texaco, Inc.),
Var. Rate, due October 1, 2024 1,100,000
1,000,000 San Antonio Texas Water Systems,
Series 95,
Tax-Exempt Commercial Paper,
3.30%, due May 4, 1998 1,000,000
2,000,000 San Antonio Texas Water Systems,
Series 95,
Tax-Exempt Commercial Paper,
3.25%, due May 6, 1998 2,000,000
2,500,000 Texas A & M University Board Regents,
Series B,
Tax-Exempt Commercial Paper,
3.55%, due April 1, 1998 2,500,000
1,000,000 Texas A & M University Board Regents,
Series B,
Tax-Exempt Commercial Paper,
3.25%, due April 29, 1998 1,000,000
2,000,000 Texas State T/RAN,
Series A,
4.75%, due August 31, 1998 2,013,620
1,000,000 Texas State T/RAN,
Series 97B,
Tax-Exempt Commercial Paper,
3.25%, due May 6, 1998 1,000,000
5,000,000 Texas State T/RAN,
Series 97B,
Tax-Exempt Commercial Paper,
3.35%, due June 2, 1998 5,000,000
1,000,000 University of Texas, System Revenue,
Series A,
Tax-Exempt Commercial Paper,
3.55%, due April 2, 1998 1,000,000
3,000,000 University of Texas, System Revenue,
Series A,
Tax-Exempt Commercial Paper,
3.30%, due May 8, 1998 3,000,000
UTAH
4,000,000 Intermountain Power Agency Utah,
Series B1,
Tax-Exempt Commercial Paper,
3.30%, due May 7, 1998 4,000,000
1,000,000 Intermountain Power Agency Utah,
Series B2,
Tax-Exempt Commercial Paper,
3.40%, due April 8, 1998 1,000,000
1,700,000 Salt Lake County Utah,
Pollution Control Rev.
(Service Station Holdings Project),
Var. Rate, due February 1, 2008 1,700,000
1,500,000 Utah State,
Series 97A,
Tax-Exempt Commercial Paper,
3.30%, due May 11, 1998 1,500,000
WASHINGTON
1,000,000 Seattle Municipal Power & Light Rev.,
Tax-Exempt Commercial Paper,
3.45%, due June 1, 1998 1,000,000
2,250,000 Seattle Municipal Power & Light Rev.,
Tax-Exempt Commercial Paper,
3.65%, due June 1, 1998 2,250,000
900,000 Seattle Municipal Power & Light Rev.,
Var. Rate, due November 1, 2018 900,000
500,000 Washigton State,
Series A,
Var. Rate, due June 1, 2020 500,000
WISCONSIN
1,400,000 Oak Creek Wisconsin,
Pollution Control Rev.
(Wisconsin Electric Power Co.),
Var. Rate, due August 1, 2016 1,400,000
1,600,000 Sheboygan Wisconsin,
Pollution Control Rev.
(Wisconsin Power & Light Co.),
Var. Rate, due August 1, 2014 1,600,000
1,500,000 Sheboygan Wisconsin,
Pollution Control Rev.
(Wisconsin Electric Power Co.),
Var. Rate, due September 1, 2015 1,500,000
1,104,000 Wisconsin State G.O.,
Series 97A,
Tax-Exempt Commercial Paper,
3.30%, due April 2, 1998 1,104,000
3,000,000 Wisconsin State G.O.,
Series 97B,
Tax-Exempt Commercial Paper,
3.30%, due April 2, 1998 3,000,000
WYOMING
2,600,000 Lincoln County Wyoming,
Pollution Control Rev. (Exxon Project),
Series B,
Var. Rate, due November 1, 2014 2,600,000
1,400,000 Lincoln County Wyoming,
Pollution Control Rev. (Exxon Project),
Series D,
Var. Rate, due November 1, 2014 1,400,000
TOTAL INVESTMENTS - 100.81% $ 170,382,620
Other assets less liabilities - (0.81%) (1,376,510)
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share;
1,000,000,000 shares of $0.01 par value
capital shares authorized;
169,105,938 shares outstanding) $ 169,006,110
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.
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
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 (800) 996-2862
www.umb.com
JB26A 5/98
