Scout Stock Fund
(Formerly UMB Stock Fund)
A no-load mutual fund with primary emphasis
on long-term growth of both capital and income.
Report for Quarter Ending
March 31, 1995
TO THE SHAREHOLDERS
Scout Stock Fund's (formerly UMB Stock Fund) total return (price change and
reinvested distributions) for the first calendar quarter of 1995 was 7.13%.
Total returns for the unmanaged Value Line Composite and Standard & Poor's
500 indices for the same time period were 5.83% and 9.73%, respectively.
The Fund, when compared to relative market indices, continues to outperform
over the long and short term:
Historical Rates of Return
<TABLE>
<CAPTION>
1-1/4 3-1/4 5-1/4 12-1/4
Years Years Years Years
<S> <C> <C> <C> <C>
Scout Stock Fund 7.99% 8.53% 9.22% 12.26%
Lipper Comparisons
Gen. Equity Funds
(avg. 1748 funds) 1.04% 6.04% 8.32% 11.92%
Growth Funds
(avg. 588 funds) 1.90% 5.60% 7.94% 11.68%
</TABLE>
Note: All returns based on quarter ending 3/31/95.
Average annual compounded total returns for one, five and ten years as of
March 31, 1995 were 12.02%, 10.01% and 11.50%, respectively. 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.
Following a weak year for equities in 1994, the first quarter rally was the
strongest since the first quarter of 1987 as a result of a surging economy
and low inflation. The Fund's performance reflected this growth comparing
favorably with Lipper's Growth Equity Fund Average (588 funds) of 7.38%.
We reduced stock holdings in over-valued industries such as the machinery and
financial industry. When new buying opportunities arose in the quarter, the
Fund benefited by re-acquiring low-priced stocks such as J.C. Penney's
(retail). The top ten equity holdings at the end of the quarter were:
Top 10 Equity Holdings
<TABLE>
<CAPTION>
Market Percent
Value of Total
<S> <C> <C>
Snap-On, Inc. 1,387,000 1.53%
Atlantic Richfield Co. 1,380,000 1.52%
CIGNA Corp. 1,345,500 1.48%
Baker Hughes, Inc. 1,324,375 1.46%
IBM Corp. 1,310,000 1.44%
NBD Bancorp, Inc. 1,300,000 1.43%
Gannett Co. 1,281,000 1.41%
U.S. West, Inc. 1,280,000 1.41%
Kerr-McGee Corp. 1,275,000 1.40%
Masco Corp. 1,274,894 1.40%
Top 10 Equity Holdings Total: 13,157,769 14.48%
</TABLE>
Note: All market values based on 3/31/95 statement of assets.
Despite the first quarter's market rally, accelerating growth may not
continue through mid-year because of high market valuations and concerns over
the U.S. dollar and inflation. With this in mind, the Fund's cash position
has risen to 27% due to active selling throughout the first quarter. This
should buffer the Fund against a down turn and allow the purchase of stocks
at better values and lower risk.
We appreciate your continued interest in Scout Stock Fund as part of your
investment portfolio.
Sincerely,
LARRY D. ARMEL
Larry D. Armel
President
<PAGE>
Statement of Net Assets
March 31, 1995
<TABLE>
<CAPTION>
Shares Company Market Value
<S> <C> <C>
COMMON STOCKS - 69.68%
BASIC MATERIALS - 7.62%
10,000 Air Products & Chemicals Inc. $ 521,250
70,000 Brush Wellman, Inc. 1,233,750
7,500 Carpenter Technology Corp. 433,125
7,500 Chevron Corp. 360,000
30,000 Cyprus Amax Minerals Co. 851,250
10,000 duPont (E.I.) deNemours & Co. 605,000
25,000 Ecolab Inc. 606,250
30,000 Engelhard Corp. 888,750
5,000 International Paper Co. 375,625
50,000 Mitchell Energy & Development Corp. Cl. A 900,000
2,500 Monsanto Co. 200,625
20,000 Nalco Chemical Co. 672,500
10,000 Rohm & Haas Co. 590,000
5,000 Union Camp Corp. 259,375
32,000 Weyerhaeuser Co. 1,244,000
10,000 Worthington Industries Inc. 198,750
9,940,250
CAPITAL GOODS - 4.66%
1,050 Briggs & Stratton Corp. 38,719
6,000 Browning-Ferris Industries, Inc. 204,000
100,000 Calgon Carbon Corp. 1,137,500
30,000 Cooper Industries, Inc. 1,162,500
15,000 Deere & Co. 1,218,750
10,000 Emerson Electric Co. 665,000
15,000 Fluor Corp. 723,750
7,500 Grainger (W.W.), Inc. 472,500
15,000 TRINOVA Corp. 459,375
6,082,094
CONSUMER CYCLICAL - 13.84%
35,000 Bassett Furniture Industries, Inc. 918,750
27,500 Block (H&R), Inc. 1,192,812
40,000 Brown Group, Inc. 1,160,000
30,000 Dillard Department Stores, Inc. Cl. A 828,750
15,000 Donnelley (R.R.) & Sons 515,625
24,000 Dun & Bradstreet Corp. 1,263,000
24,000 Gannett Co. 1,281,000
25,000 General Motors Corp. 1,106,250
20,000 Genuine Parts Co. 797,500
10,000 Knight-Ridder, Inc. 565,000
15,000 Limited (The), Inc. 346,875
25,000 Mallinckrodt Group Inc. 843,750
46,150 Masco Corp. 1,274,894
30,000 May Department Stores Co. 1,110,000
12,000 Mercantile Stores Co., Inc. 535,500
15,000 Penney (J.C.) Inc. 673,125
5,000 Rite Aid Corp. 122,500
2,000 Sears, Roebuck & Co. 106,750
28,000 Service Corp. International 784,000
38,000 Snap-On, Inc. 1,387,000
46,100 Stride Rite Corp. 582,013
30,000 TJX Companies, Inc. 393,750
5,000 V. F. Corp. 265,625
18,054,469
CONSUMER STAPLES - 9.47%
15,000 ALZA Corp. 318,750
13,000 American Home Products Corp. 926,250
50,000 Archer-Daniels-Midland Co. 931,250
22,000 Bard (C.R.), Inc. 607,750
20,000 Baxter International Inc. 655,000
30,000 Bob Evans Farms Inc. 626,250
18,000 Bristol-Myers Squibb 1,134,000
40,000 Community Psychiatric Centers 515,000
10,000 Eastman Kodak Co. 531,250
7,500 Heinz (H.J.) Co. 288,750
60,000 Lance, Inc. 1,035,000
6,000 Lilly (Eli) & Co. 438,750
25,000 Merck & Co., Inc. 1,065,625
12,000 PepsiCo, Inc. 468,000
15,000 Pioneer Hi-Bred International, Inc. 540,000
6,000 Procter & Gamble Co. 397,500
30,000 Rubbermaid Inc. 990,000
25,000 Upjohn Co. 893,750
12,362,875
ENERGY - 7.96%
18,000 Amoco Corp. 1,145,250
12,000 Atlantic Richfield Co. 1,380,000
65,000 Baker Hughes, Inc. 1,324,375
50,000 Dresser Industries, Inc. 1,062,500
1,000 Exxon Corp. 66,750
20,000 Halliburton Co. 727,500
25,000 Kerr-McGee Corp. 1,275,000
1,500 Mobil Corp. 138,938
12,000 Phillips Petroleum Co. 439,500
20,000 Schlumberger, Ltd. 1,192,500
7,500 Texaco Inc. 498,750
65,000 USX-Marathon Group 1,137,500
10,388,563
FINANCIAL - 4.76%
30,000 Aon Corp. 1,095,000
10,000 Chubb Corp. 790,000
18,000 CIGNA Corp. 1,345,500
20,000 Liberty Corp. S.C. 550,000
40,000 NBD Bancorp, Inc. 1,300,000
210 Strategic Security 2,362
10,000 Unicom Corp. 237,500
25,000 Wachovia Corp. 887,500
6,207,862
TECHNOLOGY - 4.23%
5,000 AMP Inc. 180,000
5,000 Apple Computer Inc. 176,250
25,000 Digital Equipment Corp. 946,875
10,000 E-Systems, Inc. 453,750
16,000 International Business Machines Corp. 1,310,000
15,000 M/A-Com, Inc. 148,125
15,000 Novell Inc. 285,000
40,000 Perkin-Elmer Corp. 1,165,000
7,000 Tandem Computers Inc. 108,500
50,000 Telxon Corp. 743,750
5,517,250
TRANSPORTATION & SERVICES - 4.55%
20,000 Consolidated Freightways, Inc. 532,500
7,500 CSX Corp. 590,625
18,000 Norfolk Southern Corp. 1,203,750
25,000 Roadway Services, Inc. 1,206,250
30,000 Southwest Airlines Co. 536,250
22,500 Union Pacific Corp. 1,237,500
40,000 Yellow Corp. 640,000
5,946,875
UTILITIES - 12.59%
24,000 Bell Atlantic Corp. 1,266,000
15,000 BellSouth Corp. 892,500
30,000 Central & South West Corp. 727,500
50,000 Comsat Corp. 931,250
30,000 Dominion Resources 1,080,000
60,000 Entergy Corp. 1,252,500
15,000 Florida Progress Corp. 451,875
25,000 FPL Group, Inc. 909,375
21,000 MAPCO Inc. 1,170,750
60,000 Niagara Mohawk Power Corp. 825,000
20,000 Pacific Telesis Group 605,000
50,000 Panhandle Eastern Corp. 1,150,000
30,000 SCANA Corp. 1,252,500
2,000 Southwestern Bell Corp. 84,250
7,500 Sprint Corp. 226,875
40,000 Texas Utilities Co. 1,270,000
30,000 Union Electric Co. 1,061,250
32,000 U.S. West, Inc. 1,280,000
16,436,625
TOTAL COMMON STOCKS - 69.68% 90,936,863
CONVERTIBLE PREFERRED STOCK _ 0.60%
20,000 Unisys Corp., ($3.75 Cm. Cv. A Pfd.) 777,500
</TABLE>
<TABLE>
<CAPTION>
Face Market
Amount Description Value
<S> <C> <C>
CONVERTIBLE CORPORATE BONDS _ 2.96%
$ 1,000,000 Browning-Ferris Industries, Inc.,
Cv. Sub. Deb., 6.25%,
due August 15, 2012 1,000,000
300,000 Computervision Corp.,
Cv. Sub. Deb., 8.00%,
due December 1, 2009 181,500
739,000 M/A-Com, Inc., Cv. Sub. Deb.,
9.25%, due May 15, 2006 740,847
1,000,000 Masco Corp., Cv. Sub. Deb.,
5.25%, due February 15, 2012 865,000
100,000 Telxon, Cv. Sub. Deb.,
7.50%, due June 1, 2012 87,500
1,233,000 WMX Technologies Inc.,
Cv. Sub. Notes,
2.00%, due January 24, 2005 992,565
TOTAL CONVERTIBLE
CORPORATE BONDS - 2.96% 3,867,412
SHORT-TERM CORPORATE NOTES - 18.65%
1,000,000 Abbott Laboratories,
5.98%, due May 10, 1995 993,189
1,000,000 AIG Funding, Inc.,
5.93%, due April 3, 1995 994,399
1,000,000 American Telephone &
Telegraph Co.,
5.92%, due April 7, 1995 991,942
1,000,000 Atlantic Richfield Co.,
5.95%, due May 8, 1995 989,753
1,000,000 Bell Atlantic Corp.,
5.95%, due April 19, 1995 995,207
1,000,000 BellSouth Corp.,
5.94%, due April 19, 1995 995,545
1,000,000 Chevron Corp.,
5.92%, due April 5, 1995 997,533
1,000,000 Deere & Co.,
5.94%, due April 19, 1995 995,050
1,000,000 Donnelley (R.R.) & Sons,
5.96%, due April 12, 1995 993,874
1,000,000 duPont (E.I.) deNemours & Co.,
5.86%, due April 18, 1995 991,861
1,000,000 duPont (E.I.) deNemours & Co.,
5.93%, due April 25, 1995 994,235
1,000,000 General Mills, Inc.,
6.00%, due April 21, 1995 996,000
1,000,000 Heinz (H.J.) Co.,
5.97%, due May 5, 1995 991,377
1,000,000 IBM Credit Corp.,
5.98%, due April 20, 1995 994,352
1,000,000 Penney (J.C.) Funding Corp.,
5.95%, due April 19, 1995 993,224
1,000,000 PepsiCo, Inc.,
5.95%, due April 26, 1995 995,042
1,000,000 Pfizer Inc.,
5.94%, due April 12, 1995 995,050
1,000,000 Raytheon Co.,
5.93%, due April 3, 1995 997,694
1,000,000 Shell Oil Co.,
5.93%, due June 23, 1995 985,999
1,000,000 Southwestern Bell Telephone Co.,
6.05%, due June 21, 1995 1,479,329
1,000,000 Toys" R" Us Inc.,
5.97%, due April 27, 1995 995,191
1,000,000 Wal-Mart Stores, Inc.,
5.90%, due May 1, 1995 993,772
1,000,000 Xerox Credit Corp.,
6.01%, due April 11, 1995 990,818
1,000,000 3M,
5.95%, due April 25, 1995 995,372
TOTAL SHORT-TERM
CORPORATE NOTES - 18.65% 24,335,808
U.S. GOVERNMENT SECURITY - 1.48%
2,000,000 U.S. Treasury Bills,
6.14%, due June 8, 1995 1,937,918
GOVERNMENT SPONSORED ENTERPRISES - 3.77%
1,000,000 Federal Home Loan Banks
Discount Notes,
5.93%, due May 22, 1995 985,175
2,000,000 Federal Home Loan Mortgage
Corp. Discount Notes,
5.97%, due June 21, 1995 1,963,185
1,000,000 Federal National Mortgage
Assn. Discount Notes,
5.90%, due April 17, 1995 985,250
1,000,000 Federal National Mortgage
Assn. Discount Notes,
5.92%, due May 22, 1995 984,378
TOTAL GOVERNMENT SPONSORED
ENTERPRISES - 3.77% 4,917,988
REPURCHASE AGREEMENT - 0.62%
815,000 Northern Trust Co.,
5.50%, due April 3, 1995
(Collateralized by U.S.
Treasury Notes, 8.625%,
due October 15, 1995) 815,000
TOTAL INVESTMENTS - 97.76% $127,588,489
Other assets less liabilities - 2.24% 2,921,652
TOTAL NET ASSETS - 100.00%
(equivalent to $16.09 per share;
10,000,000 shares of $1.00 par
value capital shares authorized;
8,112,996 shares outstanding) $130,510,141
</TABLE>
BASIS OF DETERMINING MARKET VALUE. Each investment is valued at the latest
sales price on March 31, 1995, as reported by the principal exchange on which
the issue is listed. If no sale is reported, or if unlisted, the average of
the latest bid and asked price is used.
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.
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.
