Scout Bond Fund
(Formerly UMB Bond Fund)
A no-load mutual fund
with primary emphasis
on maximum current income consistent with
its quality and maturity standards.
Report for Quarter Ending
March 31, 1995
TO THE SHAREHOLDERS
For the quarter ended March 31, 1995, Scout Bond Fund's (formerly UMB Bond
Fund) total return (price change and reinvested distributions) was 4.19%. In
comparison, the Lipper Analytical Services fixed funds average (1419 funds),
which invests in longer term securities of lower quality, earned 3.97% for the
same time period.
The average annual compounded total returns for one, five and ten years were
3.50%, 7.21% and 8.30%, respectively, for the periods ended March 31, 1995.
Performance data contained in this report is for past periods only. Past
performance is not predictive of future performance. Investment return and
share value will fluctuate, and redemption value may be more or less than
original cost.
As of the end of the quarter, Scout Bond Fund was invested 39% in high-grade
corporate bonds, 59% in U.S. Government and federal agency issues, and 1% in
cash equivalent reserves. The average maturity was 4.2 years, the average
yield to maturity was 7.38% and the credit rating of the portfolio was AA or
better. The total net assets were $74.3 million.
Interest rate fluctuations diminished late in the fourth quarter of 1994, and
began a retreat in the first quarter of 1995. For the first quarter, the
entire bond yield curve shifted downward. The Federal Reserve's easing
significantly affected shorter-maturity bonds as reflected in the larger drop
between shorter maturity bonds on the yield curve. Yields on the 10-year and
30-year bond also dropped, but at a more constant rate than shorter-maturity
bonds. In total, rates for the quarter have fallen .75% on shorter-maturities,
.65% on the 10-year bond and .45% on the 30-year bond.
Your continued participation with Scout Bond Fund as part of your investment
portfolio is appreciated.
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
Amount Description Value
CORPORATE BONDS - 39.49%
$ 500,000 Albertson's, Incorporated Medium Term Notes,
5.71%, due March 23, 1998 $ 478,185
500,000 Albertson's, Incorporated Medium Term Notes,
6.18%, due March 22, 2000 471,020
500,000 Amoco Canada Petroleum Company Notes,
7.25%, due December 1, 2002 490,930
500,000 Anheuser-Busch Companies,
Incorporated Medium Term Notes,
4.66%, due September 18, 1995 495,730
500,000 Avery/Dennison Incorporated Medium Term Notes,
8.22%, due August 15, 1996 507,665
500,000 Baltimore Gas & Electric Company 1st &
Refunding Mortgage, 6.50%, due February 15, 2003 467,030
500,000 BellSouth Telecommunications Incorporated Notes,
6.25%, due May 15, 2003 459,295
500,000 British Petroleum America, Incorporated Notes,
8.875%, due December 1, 1997 517,775
500,000 Carolina Power & Light Company Secured
Medium Term Notes,
5.00%, due September 15, 1998 463,565
500,000 Carolina Power & Light Company Secured
Medium Term Notes,
5.875%, due January 15, 2004 442,135
500,000 Central Power & Light Company 1st Mortgage,
Series BB, 6.00%, due October 1, 1997 484,325
500,000 Chevron Canada Financial Limited Guaranteed Notes,
5.60%, due April 1, 1998 474,990
500,000 Consolidated Edison Company New York,
Incorporated Debentures,
6.625%, due February 1, 2002 470,395
500,000 Delmarva Power & Light Company Medium Term Notes,
7.50%, due May 1, 1999 498,605
500,000 Duke Power Company Medium Term Notes,
5.17%, due September 1, 1998 467,230
500,000 Duke Power Company 1st & Refunding Mortgage,
5.625%, due August 12, 1997 483,315
500,000 Duke Power Company 1st & Refunding Mortgage,
7.00%, due June 1, 2000 486,240
500,000 Duke Power Company 1st & Refunding Mortgage,
5.875%, due June 1, 2001 457,515
500,000 Exxon Capital Corporation Notes,
8.00%, due December 1, 1995 504,165
500,000 Florida Power & Light Company Secured
Medium Term Notes, 6.20%, due February 2, 1998 484,870
500,000 Florida Power & Light Company Secured
Medium Term Notes, 5.70%, due March 5, 1998 477,840
500,000 Florida Power & Light Company 1st Mortgage,
5.50%, due July 1, 1999 463,760
500,000 General Mills Incorporated Medium Term Notes,
7.50%, due June 5, 2000 497,835
500,000 General Mills Incorporated Medium Term Notes,
5.98%, due July 9, 2001 459,530
500,000 GTE California Incorporated Debentures,
Series A, 5.625%, due February 1, 2001 452,120
500,000 Houston Light & Power Company 1st Mortgage,
7.625%, due March 1, 1997 502,510
1,000,000 International Business Machines Corporation Notes,
6.375%, due November 1, 1997 979,400
500,000 International Business Machines Corporation Notes,
6.375%, due June 15, 2000 476,415
500,000 International Business Machines Corporation Notes,
7.25%, due November 1, 2002 486,670
500,000 International Paper Company Medium Term Notes,
8.05%, due March 25, 1999 504,775
500,000 Kansas City Power & Light Company Medium Term Notes,
6.50%, due February 14, 2000 476,330
500,000 Kansas City Power & Light Company Medium Term Notes,
6.50%, due January 2, 2001 472,555
500,000 Kmart Corporation Medium Term Notes,
8.00%, due December 13, 2001 505,525
250,000 McDonald's Corporation Medium Term Notes,
8.75%, due November 15, 2000 263,403
500,000 McDonald's Corporation Notes,
7.375%, due July 15, 2002 491,855
500,000 Minnesota Mining & Manufacturing
Company Medium Term Notes,
6.25%, due March 29, 1999 480,240
500,000 Monongahela Power Company 1st Mortgage,
5.625%, due April 1, 2000 463,885
500,000 Monongahela Power Company 1st Mortgage,
7.375%, due July 1, 2002 482,870
1,000,000 New York Telephone Company Notes,
5.875%, due September 1, 2003 883,430
500,000 Northern Illinois Gas Company 1st Mortgage,
5.50%, due February 1, 1997 486,375
500,000 Northwest Natural Gas Company Secured
Medium Term Notes,
5.98%, due December 15, 2000 462,010
500,000 Pacific Bell Telephone Company Notes,
7.25%, due July 1, 2002 489,820
500,000 Pacific Gas & Electric Company 1st &
Refunding Mortgage, 6.25%, due March 1, 2004 450,165
500,000 PepsiCo, Incorporated Notes,
7.625%, due November 1, 1998 504,375
15,994 Sears Mortgage Securities Corporation Mortgage
Pass Through Certificates, Series 86 C,
9.00%, due July 25, 2001 16,173
500,000 Sears Roebuck & Company Senior Medium Term Notes,
7.17%, due January 15, 1997 499,760
500,000 Southern California Gas Company 1st Mortgage,
Series AA, 6.50%, due December 15, 1997 490,000
500,000 Southwestern Bell Capital Corporation Medium
Term Notes, 7.80%, due November 5, 1998 509,435
500,000 Southwestern Bell Telephone Company Medium
Term Notes, 6.125%, due March 12, 2001 469,795
500,000 Southwestern Bell Telephone Company Medium
Term Notes, 5.77%, due October 14, 2003 443,665
500,000 Texaco Capital Incorporated Medium Term Notes,
8.24%, due October 15, 2001 515,570
500,000 Tribune Company Medium Term Notes,
5.30%, due April 17, 2000 452,565
500,000 Tribune Company Medium Term Notes,
5.75%, due September 15, 2003 439,395
500,000 Union Electric Company 1st Mortgage Notes,
6.75%, due October 15, 1999 483,360
500,000 Union Pacific Corporation Notes,
6.25%, due March 15, 1999 479,870
500,000 Union Pacific Corporation Notes,
7.875%, due February 15, 2002 499,380
250,000 Virginia Electric & Power Company Medium Term
Notes, 9.00%, due February 28, 1996 254,355
500,000 Wal-Mart Stores, Incorporated Notes,
5.50%, due September 15, 1997 481,570
500,000 Wal-Mart Stores, Incorporated Notes,
6.125%, due October 1, 1999 475,330
500,000 Waste Management, Incorporated Notes,
6.25%, due December 15, 1995 497,585
500,000 Weyerhaeuser Company Medium Term Notes,
8.53%, due April 21, 1997 512,155
30,515,994 29,338,636
U.S. GOVERNMENTAL AGENCIES - 4.63%
129,109 Government National Mortgage Association,
9.00%, due July 15, 2001 134,445
131,768 Government National Mortgage Association,
8.00%, due January 20 , 2002 132,260
236,260 Government National Mortgage Association,
8.50%, due February 20, 2002 239,233
62,971 Government National Mortgage Association,
8.00%, due January 15, 2004 64,272
265,573 Government National Mortgage Association,
9.50%, due April 15, 2005 276,217
267,790 Government National Mortgage Association,
9.75%, due May 15, 2005 278,523
142,847 Government National Mortgage Association,
9.00%, due October 20, 2005 146,608
212,078 Government National Mortgage Association,
7.50%, due February 15, 2006 212,759
179,124 Government National Mortgage Association,
7.50%, due March 15, 2006 179,088
39,399 Government National Mortgage Association,
8.00%, due April 20, 2006 39,546
217,838 Government National Mortgage Association,
8.00%, due June 20, 2006 218,650
262,708 Government National Mortgage Association,
8.50%, due July 15, 2006 269,953
321,760 Government National Mortgage Association,
8.00%, due August 15, 2006 328,407
350,967 Government National Mortgage Association,
7.50%, due August 20, 2006 342,512
203,929 Government National Mortgage Association,
7.50%, due September 15, 2006 203,888
113,523 Government National Mortgage Association,
7.50%, due April 15, 2007 113,501
267,218 overnment National Mortgage Association,
7.50%, due March 20, 2009 260,781
3,404,862 3,440,643
U.S. GOVERNMENT SECURITIES - 24.77%
750,000 U.S. Treasury Notes, 4.125%, due May 31, 1995 747,773
1,000,000 U.S. Treasury Notes, 3.875%, due September 30, 1995 988,750
500,000 U.S. Treasury Notes, 5.125%, due November 15, 1995 496,485
500,000 U.S. Treasury Notes, 8.50%, due November 15, 1995 506,405
500,000 U.S. Treasury Notes, 7.75%, due March 31, 1996 505,705
1,000,000 U.S. Treasury Notes, 4.25%, due May 15, 1996 975,160
1,000,000 U.S. Treasury Notes, 6.125%, due December 31, 1996 990,310
1,000,000 U.S. Treasury Notes, 8.00%, due January 15, 1997 1,020,780
500,000 U.S. Treasury Notes, 8.50%, due July 15, 1997 517,265
500,000 U.S. Treasury Notes, 5.50%, due July 31, 1997 485,545
1,000,000 U.S. Treasury Notes, 5.50%, due September 30, 1997 969,220
500,000 U.S. Treasury Notes, 7.875%, due January 15, 1998 512,030
1,000,000 U.S. Treasury Notes, 5.125%, due March 31, 1998 951,720
1,000,000 U.S. Treasury Notes, 5.125%, due April 30, 1998 950,310
1,500,000 U.S. Treasury Notes, 7.125%, due October 15, 1998 1,510,305
1,500,000 U.S. Treasury Notes, 6.375%, due January 15, 1999 1,468,365
500,000 U.S. Treasury Notes, 5.875%, due March 31, 1999 480,235
1,000,000 U.S. Treasury Notes, 6.00%, due October 15, 1999 958,440
1,500,000 U.S. Treasury Notes, 5.50%, due April 15, 2000 1,400,160
1,000,000 U.S. Treasury Notes, 7.50%, due November 15, 2001 1,017,500
1,000,000 U.S. Treasury Notes, 6.375%, due August 15, 2002 953,280
18,750,000 18,405,743
GOVERNMENT SPONSORED ENTERPRISES - 29.31%
500,000 Federal Home Loan Banks,
4.73%, due December 23, 1996 482,970
1,000,000 Federal Home Loan Mortgage Corporation,
6.13%, due August 19, 1999 958,280
250,000 Federal National Mortgage Association,
10.50%, due September 11, 1995 254,687
500,000 Federal National Mortgage Association,
7.00%, due February 10, 1996 501,560
500,000 Federal National Mortgage Association,
9.35%, due February 12, 1996 512,185
1,500,000 Federal National Mortgage Association,
8.00%, due July 10, 1996 1,523,910
1,000,000 Federal National Mortgage Association,
7.05%, due October 10, 1996 1,002,810
500,000 Federal National Mortgage Association,
8.20%, due December 23, 1996 510,310
1,000,000 Federal National Mortgage Association,
7.05%, due March 10, 1997 997,340
1,000,000 Federal National Mortgage Association,
5.70%, due September 11, 1997 972,810
1,000,000 Federal National Mortgage Association,
6.05%, due November 10, 1997 972,970
1,000,000 Federal National Mortgage Association,
8.20%, due March 10, 1998 1,029,220
1,000,000 Federal National Mortgage Association,
8.15%, due May 11, 1998 1,027,810
1,000,000 Federal National Mortgage Association,
7.85%, due September 10, 1998 1,021,720
500,000 Federal National Mortgage Association,
5.05%, due November 10, 1998 465,860
1,500,000 Federal National Mortgage Association,
7.05%, due December 10, 1998 1,492,500
1,000,000 Federal National Mortgage Association,
6.35%, due August 10, 1999 966,560
1,500,000 Federal National Mortgage Association,
6.10%, due February 10, 2000 1,423,830
1,000,000 Federal National Mortgage Association,
8.25%, due December 18, 2000 1,042,970
1,250,000 Federal National Mortgage Association,
7.50%, due February 11, 2002 1,257,025
1,000,000 Federal National Mortgage Association,
7.55%, due April 22, 2002 1,008,280
500,000 Federal National Mortgage Association,
7.05%, due November 12, 2002 488,905
1,000,000 Federal National Mortgage Association Medium Term
Notes, 6.38%, due April 29, 2003 926,430
1,000,000 Federal National Mortgage Association Medium Term
Notes (Callable 6/24/96 @ 100),
6.38%, due June 25, 2003 933,950
22,000,000 21,774,892
REPURCHASE AGREEMENT - 0.62%
460,000 Northern Trust Company, 5.50%, due April 3, 1995
(Collateralized by U.S. Treasury Notes, 8.625%,
due October 15, 1995) 460,000
TOTAL INVESTMENTS - 98.82% $ 73,419,914
Other assets less liabilities - 1.18% 873,227
TOTAL NET ASSETS - 100.00%
(equivalent to $10.74 per share; 10,000,000 shares
of $1.00 par value capital shares authorized;
6,914,370 shares outstanding) $ 74,293,141
BASIS OF DETERMINING MARKET VALUE. Debt securities (other than short-term
obligations), including listed issues, are valued on the basis of valuations
furnished by a pricing service which utilizes both dealer-supplied valuations
and electronic data processing techniques. Short-term obligations are valued
at amortized cost.
