SCOUT
STOCK FUND
A no-load mutual fund
with primary emphasis
on long-term growth of
both capital and income.
Annual Report
June 30, 1996
TO THE SHAREHOLDERS
For fiscal year ended June 30, 1996, Scout Stock Fund earned a
total return (price change and reinvested distributions) of 11.57%
in comparison to the unmanaged Standard & Poor's 500 which earned
26.00% and the Lipper Growth Funds which earned 20.17% for the
same time period.
The market momentum seen last year continued at a steady pace
through mid-February of 1996. In February, the market reacted
negatively to economic reports revealing a drop in the
unemployment rate indicating a stronger than expected economy.
From that point forward we have seen a much more volatile market
as inflationary scares have led to higher interest rates causing
stocks to vacillate within a trading range. In fact, the S&P 500
closed on June 28, 1996 only slightly above the levels seen four
months earlier. Large capitalization stocks have remained over-
valued but record cash inflows into the market from retirement
plans have given the market the momentum needed to push large
capitalization stocks upward.
Scout Stock Fund has defensively positioned itself to better
withstand a correction in this unstable market. The Fund's
position in the utilities sector has been increased during the
quarter and the stock positions in the consumer cyclical and
capital goods sectors have been reduced.
Looking forward, it seems a slower economy is highly possible as
interest rates have risen since February 1996. We continue to feel
that large-capitalization stocks are highly over-priced as we
continue to search for better-valued stocks. Cash reserves will be
used to take advantage of corrections in the market.
For six months ending June 30, shareholders received an ordinary
income dividend of $.21 per share and a long-term capital gain of
$.36 per share. For corporate shareholders, 54.78% of ordinary
income distributions qualify for the corporate dividends received
deduction.
We appreciate your continued interest in Scout Stock Fund as part
of your overall financial plan.
Top 10 Equity Holdings
Market Percent
Value of Total
Comsat Corp. $ 1,950,000 1.14%
Bristol Myers Squibb Co. 1,800,000 1.05%
Dun & Bradstreet 1,750,000 1.02%
Texas Utilities Co. 1,710,000 1.00%
Snap On, Inc. 1,705,500 1.00%
Entergy Corp. 1,702,500 1.00%
Bob Evans Farms, Inc. 1,700,000 0.99%
Archer Daniels Midland Co. 1,697,344 0.99%
Pacific Telesis Group 1,687,500 0.99%
Unicom Corporation 1,672,500 0.98%
Top 10 Equity Holdings Total: 17,375,344 10.16%
NOTE: All market values based on 6/30/96 statement of assets.
GRAPH -- Equity-76%; Cash & Equivalents-24%
Historical Distributions
Total
Calendar Dividends Capital Gains Distribution
Year per Share per Share per Share
1984 0.26 0.47 0.73
1985 0.50 0.45 0.95
1986 0.51 1.01 1.52
1987 0.63 1.12 1.75
1988 0.47 0.41 0.88
1989 0.58 0.53 1.11
1990 0.58 0.21 0.79
1991 0.48 0.01 0.49
1992 0.39 0.31 0.70
1993 0.34 0.82 1.16
1994 0.39 1.26 1.65
1995 0.51 1.08 1.59
6 mos 1996 0.21 0.36 0.57
*Based on Calendar Year
Sincerely,
/s/David B. Anderson
David B. Anderson
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 applicable deposit insurance. These shares involve
investment risks, including the possible loss of the principal
amount invested.
GRAPH -- Scout Stock Fund versus Lipper Growth Funds
Hypothetical Growth of $10,000
Scout Stock Fund's average annual compounded total returns
for one, five and ten year periods ended June 30,
1996, were 11.57%, 11.22% and 10.08%, 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.
FINANCIAL STATEMENTS
Statement of Net Assets
June 30, 1996
<TABLE>
<CAPTION>
Market
Shares Company Cost Value
</CAPTION>
<S> <C> <C> <C>
COMMON STOCKS - 73.63%
BASIC MATERIALS - 9.14%
70,000 Brush Wellman, Inc. $ 1,000,570 $ 1,330,000
100,000 Calgon Carbon Corp. 1,446,548 1,350,000
5,000 Carpenter Technology Corp. 78,925 160,000
25,000 Corning Inc. 754,375 959,375
60,000 Cyprus Amax Minerals Co. 1,427,722 1,357,500
2,500 duPont (E.I.) deNemours & Co. 92,263 197,812
10,000 Eastman Chemical Co. 611,750 608,750
2,500 Ecolab, Inc. 50,750 82,500
50,000 Engelhard Corp. 883,250 1,150,000
10,000 Georgia Pacific Corp. 653,000 710,000
25,000 International Paper Co. 647,613 921,875
50,000 Nalco Chemical Co. 1,297,250 1,575,000
20,000 Rohm & Haas Co. 1,149,000 1,255,000
25,000 Union Camp Corp. 1,184,960 1,218,750
35,000 Weyerhaeuser Co. 1,080,364 1,487,500
60,000 Worthington Industries, Inc. 1,073,700 1,252,500
13,432,040 15,616,562
CAPITAL GOODS - 4.37%
30,000 Browning Ferris Industries, Inc. 864,000 870,000
36,000 Cooper Industries, Inc. 1,469,089 1,494,000
20,000 Deere & Co. 323,007 800,000
1,500 Emerson Electric Co. 74,108 135,562
4,000 Fluor Corp. 153,700 261,500
50,000 Giddings & Lewis 789,680 812,500
15,000 Grainger (W.W.), Inc. 869,983 1,162,500
25,000 Hillenbrand Industries, Inc. 729,850 931,250
30,000 Trinova Corp. 815,250 1,001,250
6,088,667 7,468,562
CONSUMER CYCLICAL - 13.74%
50,000 American Greetings Corp. 1,313,125 1,368,750
48,000 Bassett Furniture Industries 1,341,919 1,284,000
35,000 Block (H&R), Inc. 1,264,250 1,141,875
40,000 Brown Group, Inc. 1,103,519 695,000
40,000 Dillards Dept. Stores, Inc., Cl A 1,034,074 1,460,000
20,000 Donnelley (R.R.) & Sons Co. 565,832 697,500
28,000 Dun & Bradstreet 1,422,781 1,750,000
20,000 Gannett Co., Inc. 943,049 1,415,000
25,000 General Motors Corp. 982,168 1,309,375
25,000 Genuine Parts Co. 773,859 1,143,750
10,000 Kimberly Clark Corp. 724,250 772,500
27,195 Limited (The) Inc. 531,662 584,692
35,000 Mallinckrodt Group, Inc. 1,117,147 1,360,625
40,000 Masco Corp. 951,900 1,210,000
25,000 May Department Stores Co. 814,157 1,093,750
10,000 Mercantile Stores Co., Inc. 319,205 586,250
3,000 Payless Shoesource, Inc.* 58,138 95,250
15,000 Penney (J.C.) & Co., Inc. 608,921 787,500
10,000 Readers Digest Assc. `A' 475,896 425,000
6,000 Service Corp. International 68,985 345,000
36,000 Snap-On, Inc. 1,290,166 1,705,500
130,000 Stride Rite Corp. 1,653,690 1,072,500
35,000 Tjx Companies, Inc. 461,750 1,181,250
19,820,443 23,485,067
CONSUMER STAPLES - 11.53%
30,000 Abbott Laboratories 1,186,500 1,305,000
60,000 Alza Corp. 1,161,750 1,642,500
14,000 American Home Products Co. 177,150 841,750
88,750 Archer-Daniels-Midland Co. 961,028 1,697,344
10,000 Bard (C.R.), Inc. 239,250 340,000
100,000 Bob Evans Farms, Inc. 1,717,328 1,700,000
20,000 Bristol-Myers Squibb Co. 1,096,954 1,800,000
75,000 Community Psychiatric Centers 759,424 712,500
30,000 Darden Restaurants, Inc. 320,250 322,500
4,000 Eastman Kodak Company 108,044 311,000
50,000 Heinz H.J. Co. 1,606,250 1,518,750
35,000 International Flavors & Fragrances, Inc. 1,696,550 1,666,875
90,000 Lance, Inc. 1,770,625 1,485,000
20,000 Merck & Co., Inc. 863,212 1,292,500
40,000 Mylan Laboratories 732,000 690,000
3,000 Pioneer Hi-Bred International 91,125 158,625
50,000 Rubbermaid, Inc. 1,353,803 1,362,500
30,000 Toys "R" Us, Inc. 800,250 855,000
16,641,493 19,701,844
ENERGY - 9.64%
12,000 Amoco Corp. 427,030 868,500
12,000 Atlantic Richfield Co. 1,266,121 1,422,000
40,000 Baker Hughes, Inc. 728,950 1,315,000
50,000 Dresser Industries, Inc. 893,355 1,475,000
15,000 Halliburton Co. 378,676 832,500
25,000 Kerr-McGee Corp. 1,151,135 1,521,875
22,000 Louisiana Land & Exploration Co. 806,850 1,267,750
27,000 Mapco, Inc. 1,266,564 1,522,125
75,000 Mitchell Energy & Development 1,311,050 1,443,750
35,000 Phillips Petroleum Co. 1,054,600 1,465,625
10,000 Schlumberger, Limited 531,187 842,500
4,000 Texaco, Inc. 245,200 335,500
75,000 Usx-Marathon Group 1,474,325 1,509,375
20,000 Wmx Technologies Inc. 543,500 655,000
12,078,543 16,476,500
FINANCIAL - 2.65%
10,000 AON Corp. 310,417 507,500
30,000 First Chicago NBD Corp. 874,260 1,173,750
30,000 Liberty Corp. S.C. 805,250 952,500
60,000 Unicom Corporation 1,644,773 1,672,500
5,175 Wachovia Corp. 79,442 226,406
3,714,142 4,532,656
TECHNOLOGY - 7.46%
60,000 Adt, Ltd. 660,260 1,132,500
6,300 Amp, Inc. 238,037 252,787
50,000 Apple Computer, Inc. 1,565,625 1,050,000
90,000 Brinker International* 1,458,875 1,350,000
25,000 Digital Equipment Corp. 1,067,477 1,125,000
14,000 Ibm, Corp. 660,995 1,386,000
25,000 Motorola, Inc. 1,377,500 1,571,875
60,000 Novell, Inc.* 918,625 832,500
20,000 Perkin-Elmer Corp. 518,693 965,000
60,000 Sensormatic Electronics 1,379,326 982,500
110,000 Tandem Computers, Inc. 1,371,073 1,361,250
20,000 Telxon Corp. 203,738 235,000
10,000 Texas Instruments, Inc. 523,000 498,750
11,943,224 12,743,162
TRANSPORTATION & SERVICES - 3.25%
10,000 Csx Corp. 336,500 482,500
30,000 Caliber Systems, Inc. 1,090,705 1,020,000
50,000 Consolidated Freightways 875,423 1,056,250
10,000 Norfolk Southern Corp. 529,295 847,500
10,500 Roadway Express Inc. 142,592 148,313
20,000 Southwest Airlines Co. 481,000 582,500
15,000 Union Pacific Corp. 519,688 1,048,125
20,000 US West Media Group 343,792 365,000
4,318,995 5,550,188
UTILITIES - 11.85%
24,000 AT&T 1,207,200 1,488,000
15,000 Bell Atlantic Corp. 678,305 956,250
7,500 Bell South Corp. 205,031 317,812
50,000 Central & South West Corp. 1,246,857 1,450,000
75,000 Comsat Corp. 1,431,625 1,950,000
30,000 Dominion Resources Inc. VA 1,092,017 1,200,000
60,000 Entergy Corp. 1,378,210 1,702,500
40,000 Florida Progress Corp. 1,236,988 1,390,000
8,500 Fpl Group Inc. 231,590 391,000
75,000 Niagara Mohawk Power Corp. 1,182,105 581,250
50,000 Pacific Telesis Group 1,380,366 1,687,500
35,000 Panenergy Corp. 606,187 1,150,625
50,000 Scana Corp. 1,085,250 1,406,250
3,500 Sprint Corp. 66,780 147,000
40,000 Texas Utilities Co. 1,490,701 1,710,000
35,000 U. S. West, Inc. 1,014,790 1,115,625
40,000 Union Electric Co. 1,376,138 1,610,000
16,910,140 20,253,812
TOTAL COMMON STOCKS - 73.63% 104,947,687 125,828,353
CONVERTIBLE PREFERRED STOCK - 0.62%
35,000 Unisys Corp. ($3.75 Cm. Cv. A Pfd.) 1,231,950 1,067,500
<CAPTION>
Face Market
Amount Description Cost Value
</CAPTION>
CONVERTIBLE CORPORATE BONDS - 1.59%
$ 300,000 Computervision Corp., Cv. Sub. Deb.,
8.00%, due December 1, 2009 247,530 241,500
1,000,000 Masco Corp., Cv. Sub. Deb.,
5.25%, due February 15, 2012 893,293 937,500
500,000 Telxon Corp., Cv. Sub. Deb.,
7.50%, due June 1, 2012 492,532 445,000
1,200,000 WMX Technologies, Inc., Cv. Sub. Notes,
2.00%, due Janury 24, 2005 1,246,136 1,101,000
TOTAL CONVERTIBLE CORPORATE BONDS - 1.59% 2,879,491 2,725,000
SHORT-TERM CORPORATE NOTES - 17.50%
1,500,000 AIG Funding Corp., 5.30%, due July 23, 1996 1,494,921 1,494,921
1,500,000 Air Products & Chemicals, 5.34%, due July 16,1996 1,496,440 1,496,440
1,000,000 Ameritech Cap Funding Corp., 5.35%, due July 12, 1996 998,217 998,217
1,500,000 Amoco, Co., 5.26%, due July18, 1996 1,496,055 1,496,055
1,000,000 AON Corp., 5.33%, due July 2, 1996 999,704 999,704
1,500,000 Bellsouth Telecommunications, 5.34%, due August 5, 1996 1,491,990 1,491,990
1,000,000 Chevron Oil Finance Co., 5.32%, due August 6, 1996 994,532 994,532
1,500,000 Coca Cola Co., 5.30%, due July 25, 1996 1,494,479 1,494,479
1,000,000 Deere & Co., 5.35%, due July 24, 1996 996,433 996,433
1,500,000 Dover Corp., 5.34%, due July 17, 1996 1,496,218 1,496,218
1,500,000 Duke Power Co., 5.31%, due July 12, 1996 1,497,345 1,497,345
1,500,000 Dun & Bradstreet Corp., 5.32%, due August 6, 1996 1,491,798 1,491,798
1,500,000 duPont (E.I.) deNemours & Co., 5.27%, due July 19, 1996 1,495,828 1,495,828
1,500,000 Gannett Co., 5.34%, due July 19, 1996 1,495,773 1,495,773
1,000,000 General Re Corp., 5.38%, due August 9, 1996 994,022 994,022
1,000,000 Heinz H.J., 5.37%, due July 30, 1996 995,525 995,525
1,500,000 International Business Machines, 5.35%, due July 15, 1996 1,496,656 1,496,656
1,000,000 Knight Ridder Inc., 5.33%, due July 19, 1996 997,187 997,187
1,000,000 Lilly Eli & Co., 5.34%, due July 26, 1996 996,143 996,143
1,000,000 Nalco Chemical Co., 5.35%, due July 26, 1996 996,136 996,136
1,500,000 Pepsico, Inc., 5.29%, due July 19, 1996 1,495,812 1,495,812
1,500,000 Philip Morris Cos., 5.38%, due July 15, 1996 1,496,638 1,496,638
1,500,000 Toys "R" Us, 5.36%, due July 30, 1996 1,493,300 1,493,300
TOTAL SHORT-TERM CORPORATE NOTES - 17.50% 29,901,152 29,901,152
GOVERNMENT SPONSORED ENTERPRISES - 6.67%
1,000,000 Federal Home Loan Bank Discount Notes,
5.13%, due August 2, 1996 995,298 995,298
1,500,000 Federal Home Loan Bank Discount Notes,
5.18%, due August 14, 1996 1,490,288 1,490,288
2,000,000 Federal Home Loan Bank Discount Notes,
5.26%, due October 3, 1996 1,972,239 1,972,239
1,500,000 Federal Home Loan Bank Discount Notes,
5.34%, due October 15, 1996 1,476,193 1,476,193
2,000,000 Federal National Mortgage Assn. Discount Notes,
5.16%, due July 9, 1996 1,997,420 1,997,420
2,000,000 Federal National Mortgage Assn. Discount Notes,
5.20%, due August 29, 1996 1,982,667 1,982,667
1,500,000 Federal National Mortgage Assn. Discount Notes,
5.19%, due September 10, 1996 1,484,430 1,484,430
TOTAL GOVERNMENT SPONSORED ENTERPRISES - 6.67% 11,398,535 11,398,535
REPURCHASE AGREEMENT - 0.67%
1,145,000 Northern Trust Co., 5.30%, due July 1, 1996,
(Collateralized by $1,143,000 par value
U.S. Treasury Notes, 6.125% due March 31, 1998
delivery value $1,145,720) 1,145,000 1,145,000
TOTAL INVESTMENTS - 100.68% $ 151,503,815 172,065,540
Other assets less liabilities - (0.68%) (1,168,456)
TOTAL NET ASSETS - 100.00%
(equivalent to $16.69 per share; 20,000,000 shares
of $1.00 par value capital shares authorized;
10,240,184 shares outstanding) $ 170,897,084
For federal income tax purposes, the identified cost of investments
owned at June 30, 1996 was $151,503,815.
Net unrealized appreciation for federal income tax purposes was
$20,559,273, which is comprised of unrealized appreciation of
$25,714,128 and unrealized depreciation of $5,154,855.
<FN>
<F1>*Non-income producing security
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 1996
<TABLE>
<S> <C>
ASSETS:
Investment securities, at market value (identified cost $151,503,815) $ 172,065,540
Dividends receivable 261,066
Interest receivable 35,379
Receivable for investments sold 173,244
Total assets 172,535,229
LIABILITIES AND NET ASSETS:
Disbursements in excess of demand deposit cash 15,895
Payable for investments purchased 1,622,250
Total liabilities 1,638,145
NET ASSETS $ 170,897,084
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 150,172,145
Accumulated undistributed income:
Net investment income 257,761
Accumulated net realized loss on investment transactions (94,547)
Net unrealized appreciation in value of investments 20,561,725
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 170,897,084
Capital shares, $1.00 par value
Authorized 20,000,000
Outstanding 10,240,184
NET ASSET VALUE PER SHARE $ 16.69
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Operations
Year Ended June 30, 1996
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends $ 3,075,581
Interest 2,658,543
5,734,124
Expenses:
Management fees 1,317,938
Government fees 13,108
1,331,046
Net investment income 4,403,078
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain from investment transactions (excluding commercial paper and repurchase agreements):
Proceeds from sales of investments 31,345,448
Cost of investments sold 24,056,075
Net realized gain from investment transactions 7,289,373
Unrealized appreciation on investments:
Beginning of year 15,363,969
End of year 20,561,725
Increase in net unrealized appreciation on investments 5,197,756
Net gain on investments 12,487,129
Increase in net assets resulting from operations $ 16,890,207
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
For The Two Years Ended June 30, 1996
<TABLE>
<CAPTION>
1996 1995
</CAPTION>
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 4,403,078 $ 3,789,068
Net realized gain from investment transactions 7,289,373 10,677,919
Increase (decrease) in net unrealized appreciation on investments 5,197,756 5,889,433
Net increase in net assets resulting from operations 16,890,207 20,356,420
Net equalization included in the price of shares issued and redeemed 150,405 109,218
DISTRIBUTIONS TO SHAREHOLDERS FROM:*
Net investment income (4,411,002) (3,747,111)
Net realized gain from investment transactions (9,660,536) (8,927,920)
Total distributions to shareholders (14,071,538) (12,675,031)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 1,956,422 and 1,107,974 shares sold 33,531,918 17,259,667
Net asset value of 650,791 and 469,642 shares issued for
reinvestment of distributions 9,808,239 7,311,709
43,340,157 24,571,376
Cost of 721,927 and 699,474 shares redeemed (12,119,138) (10,980,578)
Net increase from capital share transactions 31,221,019 13,590,798
Total increase in net assets 34,190,093 21,381,405
NET ASSETS:
Beginning of year 136,706,991 115,325,586
End of year (including undistributed net investment income
of $257,761 and $115,280, respectively) $ 170,897,084 $ 136,706,991
*Distributions to shareholders:
Income dividends per share $ 0.47 $ 0.47
Capital gains distribution per share $ 1.04 $ 1.13
</TABLE>
See accompanying Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SUMMARY OF SIGNIFI-CANT 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.
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, 1996
(excluding commercial paper, repurchase agreements and short-term
securities), were as follows:
Other than
U.S. Government U.S. Government
Securities Securities
Purchases $ 40,681,154 $ -
Proceeds from sales 29,373,152 1,972,296
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
shareholders 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 .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., which serves as the Fund's
underwriter and distributor.
4. REPURCHASE AGREEMENTS - Securities purchased under agreements
to resell are held by the Fund's custodian and investment counsel,
UMB Bank, n.a. The custodian monitors the market values of the
underlying securities which they have purchased on behalf of the
Fund to ensure that they are sufficient to protect the Fund in the
event of default by the seller.
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, 1996:
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992
</CAPTION>
<S> <C> <C> <C> <C> <C>
Net assets, beginning of year $ 16.36 $ 15.42 $ 15.74 $ 15.11 $ 14.16
Income from investment operations:
Net investment income 0.48 0.48 0.35 0.36 0.44
Net gains on securities
(both realized and
unrealized) 1.36 2.06 0.49 1.34 1.08
Total from Investment Operations 1.84 2.54 0.84 1.70 1.52
Less distributions:
Dividends from net
investment income (0.47) (0.47) (0.35) (0.35) (0.43)
Distributions from capital
gains (1.04) (1.13) (0.81) (0.72) (0.14)
Total Distributions (1.51) (1.60) (1.16) (1.07) (0.57)
Net asset value, end of year $ 16.69 $ 16.36 $ 15.42 $ 15.74 $ 15.11
Total Return 12% 17% 5% 11% 11%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 171 $ 137 $ 115 $ 102 $ 76
Ratio of expenses to average net assets 0.85% 0.86% 0.87% 0.87% 0.86%
Ratio of net investment income to
average net assets 2.81% 3.01% 2.22% 2.30% 2.91%
Portfolio turnover rate 28% 52% 22% 21% 12%
Average commission rate* $ .0501 - - - -
<FN>
<F1>*For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. This amount may vary from
period to period and fund to fund depending on the mix of trades
executed in various markets where trading practices and commission
rate structures may differ.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
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 of Scout Stock Fund, Inc., including the statement of
net assets, as of June 30, 1996, and the related statement of
operations, statement of changes in net assets and the financial
highlights for the most recent period presented (prior periods
presented 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 audit.
We conducted our audit 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, 1996 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
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides 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, 1996,
the results of its operations, the changes in its net assets and
the financial highlights for the period indicated in the first
paragraph, in conformity with generally accepted accounting
principles.
BAIRD, KURTZ & DOBSON
Kansas City, Missouri
July 23, 1996
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.
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
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>
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Scout Stock Fund, Inc.
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<S> <C>
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<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> JUN-30-1996
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