SCOUT STOCK FUND
ANNUAL REPORT
JUNE 30, 1995
TO THE SHAREHOLDERS
For the fiscal year ended June 30, 1995, Scout Stock Fund's total return
(price change and reinvested distributions) was 17.30%, while the unmanaged
Standard & Poor's 500 index of larger companies return was 20.19%. For the
year to date and second quarter ended June 30, the Fund's total returns were
13.32% and 5.78%, respectively. During those periods, the S&P 500 returned
20.19% and 9.53%, respectively.
The latest Morningstar review as of June 9, 1995, rated Scout Stock Fund
****(4 Star) - one notch below the top ranking. Morningstar proprietary
ratings reflect historical risk-adjusted performance through June 30, 1995.
The ratings are subject to change every month. Morningstar ratings are
calculated from the funds' three-, five- and ten-year average annual returns
with appropriate fee adjustments and a risk factor that reflects fund
performance relative to three-month Treasury bill monthly returns. Ten
percent of the funds in an investment category receive five stars and 22.5%
receive four stars. The table below details longer-term return comparisons:
Comparative Total Returns
2-1/2 8-1/2 12-1/2
Years Years Years
Scout Stock Fund 10.69% 10.87% 12.51%
Lipper Growth Funds 10.09% 11.62% 12.23%
(avg. 615 funds)
Note: All returns based on period ended 6/30/95.
The rally that drove the market in the first quarter continued throughout the
second. Technology stocks showed momentum for the second quarter, but there
are signs of moderating earnings growth. Inflation remains low and new money
continues to enter the market, but with large-cap stock valuations at high
levels, the risk of at least some correction in the market seems omnipresent.
With this in mind, profit taking on overvalued stocks and limited new buying
opportunities have contributed to the 24% cash buying reserves. This cash
position should better protect the portfolio in the event of a possible
market correction and allow the Fund to acquire stocks at more attractive
prices when they become available.
During the quarter we added three new positions in companies that are
technological leaders in their industries: AT&T (telecommunications),
Giddings & Lewis (machine tools) and Motorola (wireless communications).
We also established a position in Hillebrand Industry (caskets and hospital
beds) and two companies in the crime deterrent business - ADT (security alarm
systems) and Sensormatic (electronic surveillance).
For the second calendar quarter, shareholders received an ordinary income
dividend of $.25 per share and a long-term capital gain distribution of $.40
per share. For corporate shareholders, 56.87% of ordinary income
distributions qualify for the corporate dividends received deduction.
This marks the 12th consecutive year of capital gains and dividend
distributions.
We appreciate your continued interest in Scout Stock Fund as part of your
overall financial plan.
Sincerely,
Larry D. Armel
President
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.
<PAGE>
Top 10 Equity Holdings
Market Percent
Value of Total
Weyerhaeuser Co. 1,649,375 1.59%
IBM Corp. 1,536,000 1.48%
ALZA Corp. 1,519,375 1.47%
Brush Wellman, Inc. 1,496,250 1.45%
Snap-On, Inc. 1,472,500 1.42%
Dillard Dept. Stores, Inc. Cl.A 1,468,750 1.42%
Entergy Corp. 1,447,500 1.40%
AT&T Co. 1,434,375 1.39%
Archer-Daniels-Midland Co. 1,396,875 1.35%
Texas Utilities Co. 1,375,000 1.33%
Top 10 Equity Holdings Total: 14,796,000 14.30%
Note: All market values based on 6/30/95 statement of assets.
Scout Stock Fund versus Value Line and Lipper General Equity Funds
*unmanaged stock index
Scout Stock Fund's average annual compounded total returns for one, five
and ten year periods ended June 30, 1995, were 17.30%, 10.63% and 11.49%,
respectively. Performance data contained in this report is for past periods
only. Past performance is not predictive of future performance. Investment
returns and share value will fluctuate, and redemption value may be more or
less than original cost.
<PAGE>
FINANCIAL STATEMENTS
Statement of Net Assets
June 30, 1995
Market
Shares Company Cost Value
COMMON STOCKS - 71.33%
BASIC MATERIALS - 7.57%
70,000 Brush Wellman, Inc. $ 1,067,755 $ 1,496,250
5,000 Carpenter Technology Corp. 163,313 340,625
5,000 Chevron Corp. 207,125 233,125
30,000 Cyprus Amax Minerals Co. 655,405 855,000
10,000 duPont (E.I.) deNemours & Co. 427,970 687,500
25,000 Ecolab, Inc. 507,500 612,500
20,000 Engelhard Corp. 474,750 857,500
5,000 International Paper Co. 119,988 428,750
2,500 Monsanto Co. 53,037 225,312
20,000 Nalco Chemical Co. 330,750 727,500
22,000 Rohm & Haas Co. 1,219,850 1,207,250
35,000 Weyerhaeuser Co. 1,080,364 1,649,375
50,000 Worthington Industries, Inc. 888,700 1,021,875
7,196,507 10,342,562
CAPITAL GOODS - 5.25%
1,050 Briggs & Stratton Corp. 34,309 36,225
100,000 Calgon Carbon Corp. 1,446,548 1,212,500
30,000 Cooper Industries, Inc. 1,251,289 1,185,000
15,000 Deere & Co. 730,258 1,284,375
6,500 Emerson Electric Co. 255,527 464,750
10,000 Fluor Corp. 393,640 520,000
30,000 Giddings & Lewis, Inc. 484,680 536,250
20,000 Grainger (W.W.), Inc. 1,122,562 1,175,000
7,700 Hillenbrand Industry, Inc. 220,797 239,662
15,000 TRINOVA Corp. 392,625 525,000
6,332,235 7,178,762
CONSUMER CYCLICAL - 13.53%
46,475 Bassett Furniture Industries, Inc. 1,301,506 1,301,300
20,000 Block (H&R), Inc. 721,625 822,500
45,000 Brown Group, Inc. 1,367,224 1,023,750
50,000 Dillard Department Stores, Inc. Cl. A 1,380,824 1,468,750
CONSUMER CYCLICAL (Continued)
12,000 Donnelley (R.R.) & Sons 232,880 432,000
26,000 Dun & Bradstreet Corp. 1,319,391 1,365,000
22,000 Gannett Co. 1,040,419 1,193,500
25,000 General Motors Corp. 982,167 1,171,875
20,000 Genuine Parts Co. 537,419 757,500
10,000 Knight-Ridder, Inc. 504,598 568,750
15,000 Limited (The), Inc. 277,000 330,000
22,000 Mallinckrodt Group, Inc. 664,974 781,000
46,150 Masco Corp. 1,109,801 1,246,050
30,000 May Department Stores Co. 1,021,578 1,248,750
10,000 Mercantile Stores Co., Inc. 319,205 465,000
15,000 Penney (J.C.) Co., Inc. 608,920 720,000
2,500 Rite Aid Corp. 39,500 64,062
20,000 Service Corp. International 268,830 632,500
38,000 Snap-On, Inc. 1,363,516 1,472,500
100,000 Stride Rite Corp. 1,357,815 1,037,500
30,000 TJX Companies, Inc. 445,250 397,500
16,864,442 18,499,787
CONSUMER STAPLES - 9.03%
65,000 ALZA Corp. 1,252,625 1,519,375
10,000 American Home Products Corp. 300,120 773,750
75,000 Archer-Daniels-Midland Co. 804,278 1,396,875
15,000 Bard (C.R.), Inc. 358,875 450,000
12,000 Baxter International, Inc. 221,122 436,500
30,000 Bob Evans Farms, Inc. 461,042 611,250
18,000 Bristol-Myers Squibb Co. 922,561 1,226,250
40,000 Community Psychiatric Centers 415,799 450,000
10,000 Eastman Kodak Co. 303,375 606,250
5,000 Heinz (H.J.) Co. 169,625 221,875
60,000 Lance, Inc. 1,266,875 1,125,000
6,000 Lilly (Eli) & Co. 274,968 471,000
15,000 Merck & Co., Inc. 443,837 735,000
5,000 PepsiCo, Inc. 161,125 228,125
10,000 Pioneer Hi-Bred International, Inc. 303,750 420,000
40,000 Rubbermaid, Inc. 1,092,053 1,110,000
15,000 Upjohn Co. 445,125 568,125
9,197,155 12,349,375
ENERGY - 7.83%
16,000 Amoco Corp. 619,821 1,066,000
10,000 Atlantic Richfield Co. 1,058,727 1,097,500
65,000 Baker Hughes, Inc. 1,232,433 1,332,500
50,000 Dresser Industries, Inc. 893,355 1,112,500
20,000 Halliburton Co. 558,741 715,000
25,000 Kerr-McGee Corp. 1,007,818 1,340,625
50,000 Mitchell Energy & Development Corp. Cl. A 892,500 912,500
1,500 Mobil Corp. 48,112 144,000
10,000 Phillips Petroleum Co. 247,100 333,750
14,000 Schlumberger, Ltd. 779,888 869,750
7,500 Texaco, Inc. 459,750 492,188
65,000 USX-Marathon Group 1,331,070 1,283,750
9,129,315 10,700,063
FINANCIAL - 3.64%
25,000 Aon Corp. 803,047 931,250
6,000 Chubb Corp. 423,225 480,750
10,000 CIGNA Corp. 548,513 776,250
20,000 Liberty Corp. S.C. 488,500 545,000
38,000 NBD Bancorp, Inc. 1,115,172 1,216,000
5,000 Unicom Corp. 107,750 133,125
25,000 Wachovia Corp. 701,906 893,750
4,188,113 4,976,125
TECHNOLOGY - 6.75%
60,000 ADT, Ltd.* 660,260 705,000
3,500 AMP, Inc. 51,738 147,875
25,000 Apple Computer, Inc. 889,375 1,160,937
TECHNOLOGY (Continued)
25,000 Digital Equipment Corp.* 1,067,477 1,018,750
16,000 International Business Machines Corp. 820,077 1,536,000
10,000 M/A-Com, Inc.* 186,300 117,500
15,000 Motorola, Inc. 799,500 1,006,875
15,000 Novell, Inc.* 210,105 299,063
38,000 Perkin-Elmer Corp. 1,052,448 1,349,000
15,000 Sensormatic Electronics Corp. 407,625 532,500
50,000 Tandem Computers, Inc.* 685,250 806,250
25,000 Telxon Corp. 254,988 543,750
7,085,143 9,223,500
TRANSPORTATION & SERVICES - 4.45%
20,000 Consolidated Freightways, Inc. 242,673 442,500
7,500 CSX Corp. 517,563 563,438
18,000 Norfolk Southern Corp. 1,023,080 1,212,750
25,000 Roadway Services, Inc. 1,081,125 1,181,250
30,000 Southwest Airlines Co. 573,321 716,250
22,500 Union Pacific Corp. 944,750 1,245,938
40,000 Yellow Corp. 955,885 725,000
5,338,397 6,087,126
UTILITIES - 13.28%
27,000 American Telephone & Telegraph Co. 1,358,100 1,434,375
20,000 Bell Atlantic Corp. 939,230 1,120,000
7,000 BellSouth Corp. 382,725 444,500
25,000 Central & South West Corp. 531,218 656,250
50,000 Comsat Corp. 1,005,375 981,250
30,000 Dominion Resources 1,103,267 1,095,000
60,000 Entergy Corp. 1,374,200 1,447,500
15,000 Florida Progress Corp. 412,112 468,750
25,000 FPL Group, Inc. 777,592 965,625
21,000 MAPCO, Inc. 952,764 1,218,000
60,000 Niagara Mohawk Power Corp. 978,100 885,000
50,000 Pacific Telesis Group 1,380,866 1,337,500
40,000 Panhandle Eastern Corp. 703,718 975,000
60,000 SCANA Corp. 1,196,675 1,342,500
7,500 Sprint Corp. 173,888 252,188
40,000 Texas Utilities Co. 1,490,701 1,375,000
30,000 Union Electric Co. 991,843 1,117,500
25,000 U.S. West, Inc. 970,090 1,040,625
16,722,464 18,156,563
TOTAL COMMON STOCKS - 71.33% 82,053,771 97,513,863
CONVERTIBLE PREFERRED STOCK - 0.63%
20,000 Unisys Corp. ($3.75 Cm. Cv. A Pfd.) 739,055 860,000
Face Market
Amount Description Cost Value
CONVERTIBLE CORPORATE BONDS _ 2.82%
$ 1,000,000 Browning-Ferris Industries,
Inc., Cv. Sub. Deb.,
6.25%, due August 15, 2012 950,750 1,015,000
300,000 Computervision Corp., Cv. Sub. Deb.,
8.00%, due December 1, 2009 247,531 190,500
739,000 M/A-Com, Inc., Cv. Sub. Deb.,
9.25%, due May 15, 2006 701,105 745,466
1,000,000 Masco Corp., Cv. Sub. Deb.,
5.25%, due February 15, 2012 886,452 862,500
1,233,000 WMX Technologies, Inc., Cv. Sub. Notes,
2.00%, due Janury 24, 2005 1,281,958 1,037,262
TOTAL CONVERTIBLE CORPORATE BONDS - 2.82% 4,067,796 3,850,728
SHORT-TERM CORPORATE NOTES - 17.46%
1,000,000 American Telephone & Telegraph Co.,
5.95%, due July 10, 1995 992,067 992,067
1,000,000 American Greetings Corp.,
5.96%, due July 26, 1995 995,696 995,696
1,000,000 Armstrong World Industries, Inc.,
5.97%, due July 18, 1995 996,849 996,849
1,000,000 Bell Atlantic Network Funding Corp.,
5.95%, due July 6, 1995 997,190 997,190
1,000,000 Chevron Corp.,
5.93%, due July 12, 1995 997,529 997,529
1,000,000 Coca-Cola Co.,
5.82%, due July 5, 1995 995,150 995,150
1,000,000 Deere & Co.,
5.94%, due July 14, 1995 995,050 995,050
1,000,000 Dow Chemical Co.,
5.93%, due July 21, 1995 994,894 994,894
1,000,000 duPont (E.I.) deNemours & Co.,
5.87%, due July 7, 1995 995,108 995,108
1,000,000 duPont (E.I.) deNemours & Co.,
5.92%, due July 7, 1995 991,942 991,942
1,000,000 Grainger (W.W.), Inc.,
6.02%, due July 7, 1995 998,161 998,161
1,000,000 Hershey Foods Corp.,
5.93%, due July 21, 1995 994,070 994,070
1,000,000 Hewlett-Packard Co.,
5.96%, due July 11, 1995 987,252 987,252
1,000,000 IBM Credit Corp.,
5.88%, due July 14, 1995 993,140 993,140
1,000,000 Kellogg Co.,
5.95%, due July 6, 1995 996,529 996,529
1,000,000 Motorola, Inc.,
5.90%, due July 20, 1995 993,772 993,772
1,000,000 Nalco Chemical Co.,
5.94%, due July 11, 1995 994,555 994,555
1,000,000 PepsiCo, Inc.,
5.93%, due July 20, 1995 993,905 993,905
1,000,000 Philip Morris Companies, Inc.,
5.94%, due July 14, 1995 997,525 997,525
1,000,000 Shell Oil Co.,
5.88%, due July 27, 1995 995,100 995,100
1,000,000 Wal-Mart Stores, Inc.,
5.97%, due July 6, 1995 997,844 997,844
1,000,000 Weyerhaeuser Co.,
5.95%, due July 24, 1995 994,711 994,711
1,000,000 Xerox Credit Corp.,
5.95%, due July 25, 1995 994,711 994,711
1,000,000 3M, 5.88%, due July 25, 1995 987,750 987,750
TOTAL SHORT-TERM CORPORATE NOTES - 17.46% 23,870,500 23,870,500
U.S. GOVERNMENT SECURITY - 1.44%
2,000,000 U.S. Treasury Bills,
5.65%, due September 7, 1995 1,972,296 1,972,296
GOVERNMENT SPONSORED ENTERPRISES - 5.41%
1,000,000 Federal Home Loan Mortgage Corp.
Discount Notes,
5.86%, due July 5, 1995 993,163 993,163
1,500,000 Federal Home Loan Mortgage Corp.
Discount Notes,
5.85%, due August 2, 1995 1,489,763 1,489,763
1,000,000 Federal Home Loan Mortgage Corp.
Discount Notes,
5.83%, due October 2, 1995 978,461 978,461
1,000,000 Federal National Mortgage Assn.
Discount Notes,
5.86%, due August 15, 1995 980,467 980,467
1,000,000 Federal National Mortgage Assn.
Discount Notes,
5.83%, due August 24, 1995 984,777 984,777
2,000,000 Federal National Mortgage Assn.
Discount Notes,
5.78%, due September 28, 1995 1,968,210 1,968,210
TOTAL GOVERNMENT SPONSORED ENTERPRISES - 5.41% 7,394,841 7,394,841
TOTAL INVESTMENTS - 99.09% $120,098,259 135,462,228
Other assets less liabilities - 0.91% 1,244,763
TOTAL NET ASSETS - 100.00%
(equivalent to $16.36 per share;
10,000,000 shares of $1.00 par value
capital shares authorized;
8,354,898 shares outstanding) $136,706,991
For federal income tax purposes, the identified cost of investments owned at
June 30, 1995 was $120,098,259.
Net unrealized appreciation for federal income tax purposes was $15,363,969,
which is comprised of unrealized appreciation of $17,536,496 and unrealized
depreciation of $2,172,527.
*Securities on which no cash dividends were paid during the preceding year.
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 1995
ASSETS:
Investment securities, at market value
(identified cost $120,098,259) $ 135,462,228
Cash 193,513
Dividends receivable 231,550
Interest receivable 178,080
Receivable for investments sold 785,115
Total assets 136,850,486
LIABILITIES AND NET ASSETS:
Payable for investments purchased 143,495
Total liabilities 143,495
NET ASSETS $ 136,706,991
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 118,951,126
Accumulated undistributed income:
Undistributed net investment income 115,280
Accumulated net realized gain on
investment transactions 2,276,616
Net unrealized appreciation in value of investments 15,363,969
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 136,706,991
Capital shares, $1.00 par value
Authorized 10,000,000
Outstanding 8,354,898
NET ASSET VALUE PER SHARE $ 16.36
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL STATEMENTS
Statement of Operations
Year Ended June 30, 1995
INVESTMENT INCOME:
Income:
Dividends $ 3,134,667
Interest 1,734,814
4,869,481
Expenses:
Management fees (Note 3) 1,066,907
Registration fees and other expenses 13,506
1,080,413
Net investment income 3,789,068
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (Note 1):
Realized gain from investment transactions
(excluding commercial paper and repurchase
agreements):
Proceeds from sales of investments 55,998,788
Cost of investments sold 45,320,869
Net realized gain from investment transactions 10,677,919
Unrealized appreciation on investments:
Beginning of year 9,474,536
End of year 15,363,969
Increase in net unrealized appreciation on investments 5,889,433
Net gain on investments 16,567,352
Increase in net assets resulting from operations $ 20,356,420
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
For The Two Years Ended June 30, 1995
1995 1994
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 3,789,068 $ 2,484,987
Net realized gain from investment transactions 10,677,919 5,851,731
Increase (decrease) in net unrealized
appreciation on investments 5,889,433 (2,678,986)
Net increase in net assets resulting from
operations 20,356,420 5,657,732
Net equalization included in the price of shares
issued and redeemed (Note 1) 109,218 72,215
DISTRIBUTIONS TO SHAREHOLDERS FROM:*
Net investment income (3,747,111) (2,463,370)
Net realized gain from investment transactions (8,927,920) (5,731,206)
Total distributions to shareholders (12,675,031) (8,194,576)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 1,107,974 and 1,396,088
shares sold 17,259,667 22,317,552
Net asset value of 469,642 and 287,493
shares issued for reinvestment of distributions 7,311,709 4,502,868
24,571,376 26,820,420
Cost of 699,474 and 690,692 shares redeemed (10,980,578) (11,107,453)
Net increase from capital share transactions 13,590,798 15,712,967
Total increase in net assets 21,381,405 13,248,338
NET ASSETS:
Beginning of year 115,325,586 102,077,248
End of year (including undistributed net
investment income of $115,280 in 1995
and $567,067 in 1994) $136,706,991 $115,325,586
*Distributions to shareholders:
Income dividends per share $ 0.47 $ .351
Capital gains distribution per share $ 1.13 $ .809
See accompanying Notes to Financial Statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. 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 - Securities traded on a national securities exchange are valued
at the last reported sales price on the last business day of the year or, if
no sale was reported on that date, at the average of the last reported bid
and asked prices. Securities traded over-the-counter are valued at the
average of the last reported bid and asked prices. Short-term obligations
are valued at amortized cost, which approximates market value. Investment
transactions are recorded on the trade date. Interest income is recorded
daily. Dividend income and distributions to shareholders are recorded on the
ex-dividend dates. Realized gains and losses from investment transactions
and unrealized appreciation and depreciation of investments are reported on
the identified 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 required.
Equalization - The Fund uses the accounting practice known as equalization,
by which a portion of the proceeds from sales and costs of redemption of
capital shares, equivalent on a per share basis to the amount of undistributed
net investment income on the date of the transactions, is credited or charged
to undistributed income. As a result, undistributed net investment income per
share is unaffected by sales or redemptions of capital shares.
2. PURCHASES AND SALES OF SECURITIES - The aggregate amounts of security
transactions during the year ended June 30, 1995 (excluding commercial paper
and repurchase agreements), were as follows:
Purchases $ 52,795,886
Proceeds from sales 55,998,788
3. MANAGEMENT FEES - Management fees, which include all normal expenses of
the Fund other than taxes, fees and other charges of governmental agencies
for qualifying the Fund's shares for sale, special legal fees, interest and
brokerage commissions, are paid to Jones & Babson, Inc., an affiliated
company. These fees are based on average daily net assets of the Fund at
the annual rate of .85 of one percent of net assets. Certain officers and/or
directors of the Fund are also officers and/or directors of Jones & Babson,
Inc.
4. RECLASSIFICATION OF UNDISTRIBUTED NET INVESTMENT INCOME - During the year
ended June 30, 1995, $602,962 was reclassified from undistributed net
investment income to capital stock. Net investment income and net assets
were not affected by this change.
<PAGE>
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, 1995:
1995 1994 1993 1992 1991
Net assets, beginning of year $ 15.42 $ 15.74 $ 15.11 $ 14.16 $ 13.69
Income from investment operations:
Net investment income 0.48 0.35 0.36 0.44 0.54
Net gains on securities
(both realized and unrealized) 2.06 0.49 1.34 1.08 0.59
Total from Investment Operations 2.54 0.84 1.70 1.52 1.13
Less distributions:
Dividends from net investment income (0.47) (0.35) (0.35) (0.43) (0.54)
Distributions from capital gains (1.13) (0.81) (0.72) (0.14) (0.12)
Total Distributions (1.60) (1.16) (1.07) (0.57) (0.66)
Net asset value, end of year $ 16.36 $ 15.42 $ 15.74 $ 15.11 $ 14.16
Total Return 17% 5% 11% 11% 9%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 137 $ 115 $ 102 $ 76 $ 53
Ratio of expenses to average net assets 0.86% 0.87% 0.87% 0.86% 0.85%
Ratio of net investment income to
average net assets 3.01% 2.22% 2.30% 2.91% 4.03%
Portfolio turnover rate 52% 22% 21% 12% 8%
See accompanying Notes to Financial Statements.
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors
of Scout Stock Fund, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the statement of net assets, of Scout Stock Fund, Inc. (formerly
UMB Stock Fund, Inc.) (a Maryland corporation), as of June 30, 1995, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Fund'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 and the financial highlights. Our procedures
included confirmation of securities owned as of June 30, 1995, by
correspondence with the custodian and brokers. As to securities purchased but
not received, we requested confirmation from brokers and, when replies were
not received, we carried out other alternative auditing procedures. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement and the financial highlights 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 Stock Fund, Inc. as of June 30, 1995, the results of its operations for
the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the five
years in the period then ended in conformity with generally accepted
accounting principles.
ARTHUR ANDERSEN LLP
Kansas City, Missouri,
August 4, 1995
This report has been prepared for the information of the Shareholders of
Scout Stock 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.
