UMB SCOUT FUNDS
STOCK FUND
(UMBSX)
SEMIANNUAL REPORT DECEMBER 31, 1999
No-load mutual funds with primary emphasis
on long-term growth of both capital and income.
TO THE SHAREHOLDERS
The UMB Scout Stock Fund closed the quarter ended December
31, 1999 at $19.12 per share and had a total return (price
change and reinvested distributions) of 8.39% for the
quarter. The UMB Scout Stock Select Fund closed the quarter
at $10.10 per share and had a total return (price change and
reinvested distributions) of 7.57%.
The objective of these funds is to provide investors with
long-term growth of both capital and dividend income;
current yield is secondary to the long-term growth objective.
What a year! World markets were up as economic recovery came
to Southeast Asia and Eastern Europe. The stock markets
responded accordingly. European and U.S. markets also
continued to do well, but the real excitement was in
Southeast Asia where markets rebounded strongly from the
1997 collapse, and in Japan, where the market came back to
life in 1999. Latin American markets also improved, although
their economies are still mired in recession.
The U.S. economy has fared the best, having consistently
sailed through the crises in Southeast Asia and Eastern
Europe. Now that the other economies of the world have
improved, the United States economy should slow down. At
least this is what Federal Reserve Chairman Alan Greenspan hopes.
We have been able to maintain a high growth rate in the U.S.
economy without inflation primarily because the rest of the
world has been lagging. Now that foreign economies are doing better, we
will have to worry more about inflationary pressures in this country.
One of the common denominators of these markets has been the
role of commodities. As economies have improved worldwide,
commodity pricing has improved as well. According to the
stock markets, this has been most apparent in petroleum
products, aluminum and paper. Much of the under-developed
world is driven by commodity prices such as these, so we
expect that their economies should improve as well.
In addition to stronger commodity prices, one of the factors
that could permit an increase in pricing pressures in this
country would be a weaker dollar. But this would be the
normal by-product of our U.S. growth lagging in relationship
to the rest of the world.
Worldwide, the hot areas have been technology and
telecommunications. We have raised our weighting in
technology substantially, although we are still slightly
under-weighted relative to the Standard & Poor's 500. We
have added quality names like Intel, Molex, Gateway and Sun
Microsystems, in addition to expanding some of the existing
positions. We do not own Internet stocks at this point. They
currently show all the characteristics of participating in a
speculative bubble where investors buy stocks because they
are going up, rather than because of any measurable evaluations.
For other sectors, 1999 was not nearly as dramatic. Without
the 50 or so technology stocks that have lead the market,
the remainder of Standard & Poor's 500 have, on average,
been flat to down. This is applied to both traditional value
sectors like raw materials and to some of the traditional
growth sectors such as drugs and other consumer staples.
Indeed, the close of 1999 saw a dramatic spread between
returns for technology stocks and the rest of the market.
This was driven by two factors; first was tax-loss selling,
where investors sold stocks to recognize their losses.
Almost anything that was down was pushed further down by
people scraping the barrel to recognize losses to offset the
good gains they had earned during the year. The second
factor was year-end window dressing as many managers
scrambled to sell their embarrassing securities and load up
on the things that were working very well. We have to
remember that most mutual funds and institutional portfolios
are viewed with year-end positions and the transactions aren't seen.
We did not participate in this process, because we feel that
it is an uneconomic activity which would not be in our
investors' best interest. To the contrary, we try to take
advantage of the practice by buying some of the depressed
stocks at the end of the year and hopefully selling them at
better prices early in the following year. A number of
holdings were down and may not meet our criteria going
forward, but we were reluctant to sell them at the end of
the year when everyone else was doing so. Our shareholders
will be much better off because we exercised our patience
rather than trying to "dress up" the portfolio for our year-
end statement.
The stocks' expected growth rate held steady, especially the
top line, or sales growth, expected in future years. The
beta has increased slightly, though it still is low in
comparison to most stock funds. At the same time, we have
been able to lower the financial leverage in companies in the
portfolio and have actually lowered the expected earnings-price ratio.
We have made some changes in the Scout Stock Fund portfolio
over the last quarter, which were designed to increase the
growth prospects without substantially increasing the risk
profile. We have had a net reduction of 17 positions in the
portfolio. We think that the stocks that have been added,
and the remaining stocks, will have a better focus going
forward. The stocks in the present portfolio are expected to
show better growth and carry a slightly higher volatility as
measured by the stocks' beta. At the same time we have been
able to keep the price-earnings ratio constant and actually
lowering the financial leverage of the companies in our portfolio.
We appreciate you as a valued shareholder of UMB Scout Stock
Fund and encourage your questions and comments.
Sincerely,
/s/James L. Moffett
James L. Moffett
UMB Investment Advisors
Shares of the UMB 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") or any other
government agency. These shares involve investment risks,
including the possible loss of the principal invested.
CHART - HYPOTHETICAL GROWTH OF $10,000 - UMB SCOUT STOCK FUND (UMBSX)
CHART - HYPOTHETICAL GROWTH OF $10,000 - UMB SCOUT STOCK SELECT FUND
CHART - COMPARATIVE RATES OF RETURN
UMB Scout Stock Fund (UMBSX)
as of December 31, 1999
1 Year 3 Years 5 Years 10 Years
UMB Scout Stock Fund 13.31% 13.85% 14.36% 11.24%
Lipper Growth and Income
Fund Index* 11.86% 17.28% 20.62% 14.39%
S&P 500* 21.04% 27.56% 28.56% 18.21%
Performance data contained in this report are for past
periods only. Past performance is not indicative of future
results. Investment return and share value will fluctuate,
and redemption value may be more or less than original cost
*Unmanaged index of stocks, bonds or mutual funds (there are
no direct investments or fees in these indices).
CHART - COMPARATIVE RATES OF RETURN
UMB Scout Stock Select Fund
as of December 31, 1999
Quarter Inception
UMB Scout Stock Select Fund 7.57% 1.76%
Lipper Growth and Income
Fund Index* 8.96% N.A.
S&P 500* 14.88% N.A.
Inception - May 17, 1999.
Performance data contained in this report are for past
periods only. Past performance is not indicative of future
results. Investment return and share value will fluctuate,
and redemption value may be more or less than original cost.
*Unmanaged index of stocks, bonds or mutual funds (there are
no direct investments or fees in these indices).
CHART - TOP TEN EQUITY HOLDINGS
UMB Scout Stock Fund (UMBSX)
Market Percent
Value (000's) of Total
Motorola, Inc. $ 4,712 2.85%
Molex, Inc. 4,535 2.75%
International Business Machines Corp. 4,320 2.62%
Gateway, Inc. 3,963 2.40%
Texas Instruments, Inc. 3,875 2.35%
Sun Microsystems 3,872 2.35%
Apple Computer, Inc. 3,598 2.18%
Intel Corp. 3,581 2.17%
Kimberly-Clark Corp. 3,263 1.98%
Lucent Technologies, Inc. 2,993 1.81%
Top Ten Equity Holdings Total: $ 38,711* 23.45%
As of December 31, 1999, statement of assets. Subject to change.
*Market Values are rounded; may not equal total.
CHART - TOP TEN EQUITY HOLDINGS
UMB Scout Stock Select Fund
Market Percent
Value (000's) of Total
Motorola, Inc. $ 191 2.8%
Gateway, Inc. 187 2.7%
Sun Microsystems 164 2.4%
Molex, Inc. 159 2.3%
Bard (C.R.), Inc. 148 2.1%
Hewlett-Packard Co. 148 2.1%
Apple Computer, Inc. 144 2.1%
Mylan Laboratories, Inc. 144 2.1%
Engelhard Corp. 142 2.0%
Knight Ridder, Inc. 141 2.0%
Top Ten Equity Holdings Total: $ 1,569* 22.7%
As of December 31, 1999, statement of assets. Subject to change.
*Market Values are rounded; may not equal total.
CHART - FUND DIVERSIFICATION - UMB SCOUT STOCK FUND (UMBSX)
CHART - FUND DIVERSIFICATION - UMB SCOUT STOCK SELECT FUND
CHART - HISTORICAL PER-SHARE RECORD
UMB Scout Stock Fund (UMBSX)
Income & Cumulative*
Net Short-Term Long-Term Value Per
Asset Gains Gains Share Plus
Value Distribution Distribution Distributions
12/31/82 $ 9.87 $ 0.03 $ - $ 9.90
12/31/83 11.34 0.86 - 12.23
12/31/84 11.20 0.62 0.11 12.82
12/31/85 12.74 0.73 0.22 15.31
12/31/86 12.78 0.51 1.01 16.87
12/31/87 11.87 0.78 0.97 17.71
12/31/88 12.62 0.49 0.39 19.34
12/31/89 13.87 0.62 0.49 21.70
12/31/90 12.76 0.59 0.21 21.39
12/31/91 15.40 0.48 - 24.51
12/31/92 15.77 0.39 0.31 25.58
12/31/93 16.24 0.38 0.79 27.21
12/31/94 15.01 0.46 1.19 27.63
12/31/95 16.34 0.73 0.87 30.56
12/31/96 16.97 0.47 0.62 32.28
12/31/97 19.01 0.46 1.00 35.78
12/31/98 18.86 0.45 1.10 37.18
12/31/99 19.12 0.40 1.79 39.62
*Does not assume any compounding of reinvested distributions.
Table shows calendar year distributions and net asset
values; may differ from fiscal year annual reports.
CHART - HISTORICAL PER-SHARE RECORD
UMB Scout Stock Select Fund
Income & Cumulative*
Net Short-Term Long-Term Value Per
Asset Gains Gains Share Plus
Value Distribution Distribution Distributions
12/31/99 $10.10 $ 0.07 $ - $10.17
*Does not assume any compounding of reinvested distributions.
Table shows calendar year distributions and net asset
values; may differ from fiscal year annual reports.
FINANCIAL STATEMENTS December 31, 1999 (unaudited)
Statement of Net Assets
MARKET
SHARES COMPANY VALUE
STOCK PORTFOLIO
COMMON STOCKS - 84.19%
Basic Materials - 5.92%
85,000 Brush Wellman, Inc. $ 1,429,063
100,000 Engelhard Corp. 1,887,500
50,100 International Paper Co. 2,827,519
76,000 Mallinckrodt Group, Inc. 2,417,750
30,000 Rohm & Haas Co. 1,220,625
9,782,456
Capital Goods - 2.26%
125,000 Calgon Carbon Corp. 742,188
35,000 Grainger (W.W.), Inc. 1,673,438
50,000 Snap-On, Inc. 1,328,125
3,743,750
Consumer Cyclical - 7.12%
40,000 Block (H&R), Inc. 1,750,000
14,000 Gannett Co., Inc. 1,141,875
15,000 General Motors Corp. 1,090,313
40,000 Genuine Parts Co. 992,500
28,934 Limited, Inc. 1,253,204
24,000 Masco Corp. 609,000
48,900 Pharmacia & Upjohn, Inc. 2,200,500
120,000 Stride Rite Corp. 780,000
54,500 TJX Co., Inc. 1,113,844
4,133 Too, Inc. 71,294
19,644 Tyco International 763,661
11,766,190
Consumer Staples - 16.52%
40,000 Alza Corp. 1,385,000
30,000 Amgen, Inc. 1,801,875
3,000 Anheuser-Busch Companies, Inc. 212,625
105,000 Archer Daniels Midland Co. 1,279,688
40,000 Bard (C.R.), Inc. 2,120,000
77,000 Brinker International 1,848,000
24,000 Bristol-Myers Squibb Co. 1,540,500
200,000 Covance, Inc. 2,162,500
40,000 Dayton Hudson Corp 2,937,500
16,000 Heinz (H.J.) Co. 637,000
50,000 Kimberly-Clark Corp. 3,262,500
23,700 Lance, Inc. 237,000
40,000 McDonalds Corp. 1,612,500
30,000 Merck & Co., Inc. 2,011,875
65,400 Mylan Laboratories, Inc. 1,647,263
74,500 Pepsico 2,626,125
27,321,950
Energy - 6.89%
20,000 Atlantic Richfield Co. 1,730,000
60,000 Halliburton Co. 2,415,000
35,000 Kerr-McGee Corp. 2,170,000
30,000 Phillips Petroleum Co. 1,410,000
24,000 Schlumberger Limited 1,350,000
65,000 Union Pacific Resources Group, Inc. 828,750
60,000 USX-Marathon Group 1,481,250
11,385,000
Financial - 4.55%
70,000 AON Corp. $2,800,000
100,000 Firstmerit Corp. 2,300,000
60,500 Lincoln National Corp. Indiana 2,420,000
7,520,000
Technology - 27.00%
35,000 Apple Computer, Inc. 3,598,438
37,500 A T & T 1,903,125
40,000 Boeing Co. 1,662,500
3,000 Cisco Systems, Inc. 321,375
23,625 Compaq Computer Corp. 639,352
10,000 Electronic Data Systems Corp. 669,375
55,000 Gateway, Inc. 3,963,438
43,500 Intel Corp. 3,580,594
40,000 International Business Machines Corp. 4,320,000
40,000 Lucent Technologies, Inc. 2,992,500
80,000 Molex, Inc. 4,535,000
32,000 Motorola, Inc. 4,712,000
40,000 Novell, Inc. 1,592,500
20,000 PE Corp-PE Biosystems, Inc. 2,406,250
50,000 Sun Microsystems 3,871,875
40,000 Texas Instruments, Inc. 3,875,000
44,643,320
Transportation & Services - 2.26%
48,000 FDX Corp. 1,965,000
100,000 Southwest Airlines Co. 1,618,750
4,656 Transocean Sedco Forex Inc. 156,849
3,740,599
Utilities - 11.67%
40,000 Ameren Corp. 1,310,000
32,000 Bell Atlantic Corp. 1,970,000
55,000 BellSouth Corp. 2,574,688
27,067 Comsat Corp. 537,957
65,000 Entergy Corp. 1,673,750
43,000 Florida Progress Corp. 1,819,438
7,000 GTE Corp. 493,938
50,000 SBC Communications, Inc. 2,437,500
50,000 Scana Corp. 1,343,750
35,000 Texas Utilities Co. 1,244,688
22,273 US West, Inc. 1,610,856
75,000 Williams Companies, Inc. 2,292,188
19,308,750
TOTAL COMMON STOCKS - 84.19% 139,212,016
FACE MARKET
AMOUNT DESCRIPTION VALUE
CONVERTIBLE CORPORATE BONDS - 0.50%
$1,000,000 WMX Technologies, Inc., Cv. Sub. Notes,
2.00%, due January 24, 2005 823,750
SHORT-TERM CORPORATE NOTES - 13.36%
1,000,000 American Tel & Telegraph Co.,
5.86%, due February 4, 2000 994,303
1,500,000 Du Pont E I De Nemours & Co.,
5.78%, due January 21, 2000 1,494,943
1,000,000 Gillette Co., 6.15%, due January 7, 2000 998,804
1,000,000 Progress Cap Holdings Inc.
5.33%, due January 10, 2000 998,361
1,500,000 Progress Cap Holdings Inc.,
5.90%, due January 14, 2000 1,496,558
14,110,000 Northern Trust Repo,
3.50%, due January 3, 2000 14,110,000
1,500,000 Wisconsin Electric Power Co.,
6.10%, due January 12, 2000 1,995,933
TOTAL SHORT-TERM CORPORATE NOTES - 13.36% 22,088,902
GOVERNMENT-SPONSORED ENTERPRISES - 1.81%
2,000,000 Federal National Mortgage Assn.,
5.47%, due January 8, 2000 1,988,148
1,000,000 Federal National Mortgage Assn.,
5.50%, due January 20, 2000 996,944
TOTAL GOVERNMENT-SPONSORED ENTERPRISES - 1.81% 2,985,093
TOTAL INVESTMENTS - 99.86% 165,109,761
Other assets less liabilities - 0.14% 238,479
TOTAL NET ASSETS - 100.00%
(equivalent to $19.12 per share; 20,000,000 shares
of $1.00 par value capital shares authorized;
8,648,551.690 shares outstanding) $ 165,348,240
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS December 31, 1999 (unaudited)
Statement of Net Assets
MARKET
SHARES COMPANY VALUE
STOCK SELECT PORTFOLIO
COMMON STOCKS - 95.96%
Basic Materials - 7.17%
5,000 Brush Wellman, Inc. $ 84,063
7,500 Engelhard Corp. 141,563
2,200 International Paper Co. 124,163
2,350 Mallinckrodt Group, Inc. 74,759
1,000 Weyerhaeuser Co. 71,813
496,359
Capital Goods - 5.51%
1,000 Cooper Industries, Inc. 40,438
2,000 Emerson Electric Co. 114,750
2,400 Grainger (W.W.), Inc. 114,750
4,200 Snap-On, Inc. 111,563
381,500
Consumer Cyclical - 10.88%
1,000 American Greetings Corp. 23,625
1,400 Block (H&R), Inc. 61,250
1,000 Donnelley (R.R.) & Sons Co. 24,813
3,200 Genuine Parts Co. 79,400
2,375 Knight Ridder, Inc. 141,313
2,400 Limited, Inc. 103,950
1,400 Pharmacia & Upjohn, Inc. 63,000
3,900 Stride Rite Corp. 25,350
257 Too, Inc. 4,433
6,000 TJX Co., Inc. 122,625
2,000 TRW, Inc. 103,875
753,633
Consumer Staples - 21.32%
800 Alza Corp. 27,700
1,800 Amgen, Inc. 108,113
800 Anheuser-Busch Companies, Inc. 56,700
8,290 Archer Daniels Midland Co. 101,034
2,800 Bard (C.R.), Inc. 148,400
2,000 Bristol-Myers Squibb Co. 128,375
11,400 Covance, Inc. 123,263
4,300 Darden Restaurants, Inc. 77,938
1,800 Dayton Hudson Corp. 132,188
600 International Flavors & Fragrances, Inc. 22,650
1,800 Kimberly-Clark Corp. 117,450
2,700 McDonalds Corp. 108,844
900 Merck & Co., Inc. 60,356
5,700 Mylan Laboratories, Inc. 143,569
3,400 Pepsico, Inc. 119,850
1,476,428
Energy - 7.27%
4,000 Burlington Resources, Inc. 132,250
3,000 Halliburton Co. 120,750
1,400 Kerr-McGee Corp. 86,800
4,300 Union Pacific Resources Group, Inc. 54,825
4,400 USX-Marathon Group 108,625
503,250
Financial - 5.09%
2,700 AON Corp. 108,000
4,900 Firstmerit Corp. 112,700
3,300 Lincoln National Corp. Indiana 132,000
352,700
Technology - 24.09%
1,400 Apple Computer, Inc. 143,938
1,000 AT & T 50,750
2,600 Boeing Co. 108,063
2,600 Gateway, Inc. 187,363
1,300 Hewlett-Packard Co. 148,119
1,600 Intel Corp. 131,700
1,130 International Business Machines Corp. 122,040
1,400 Lucent Technologies, Inc. 104,738
2,800 Molex, Inc. 158,725
1,300 Motorola, Inc. 191,425
2,400 Novell, Inc. 95,550
2,120 Sun Microsystems 164,168
2,700 Xerox Corp. 61,256
1,667,833
Transportation & Services - 4.16%
1,400 CNF Transportation, Inc. 48,300
2,700 FDX Corp. 110,531
8,000 Southwest Airlines Co. 129,500
288,331
Utilities - 10.45%
700 Ameren Corp. 22,925
1,100 Bell Atlantic Corp. 67,719
2,700 BellSouth Corp. 126,394
4,000 Entergy Corp. 103,000
1,600 Florida Progress Corp. 67,700
1,300 GTE Corp. 91,731
2,400 SBC Communications, Inc. 117,000
800 Scana Corp. 21,500
1,600 Texas Utilities Co. 56,900
1,600 Williams Companies, Inc. 48,900
723,769
TOTAL COMMON STOCKS - 95.96% 6,643,803
FACE MARKET
AMOUNT COMPANY VALUE
REPURCHASE AGREEMENT - 3.97%
$275,000 Northern Trust Co., 3.50%, due January 3, 2000
(Collateralized by U.S. Treasury Notes,
5.38%, due July 31, 2000) 275,000
TOTAL INVESTMENTS - 99.93% 6,918,803
Other assets less liabilities - 0.07% 5,032
TOTAL NET ASSETS - 100.00%
(equivalent to $10.10 per share; 10,000,000 shares
of $1.00 par value capital shares authorized;
685,204.196 shares outstanding) $ 6,923,835
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS DECEMBER 31, 1999 (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
STOCK
STOCK SELECT
ASSETS:
Investment securities, at market value
(identified cost $117,136,342 and
6,746,763, respectively) $165,109,761 $ 6,918,803
Cash 33,902 (1,592)
Dividends receivable 195,910 6,624
Interest receivable 8,667 -
Total assets 165,348,240 6,923,835
NET ASSETS $165,348,240 $ 6,923,835
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $116,827,408 $ 6,806,508
Accumulated undistributed income:
Net investment income 15,028 932
Net realized gain (loss) on investment
transactions 726,834 (55,645)
Net unrealized appreciation on investments 47,778,970 172,040
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $165,348,240 $ 6,923,835
Capital shares, $1.00 par value
Authorized 20,000,000 10,000,000
Outstanding 8,648,552 685,204
NET ASSET VALUE PER SHARE $ 19.12 $ 10.10
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1999, AND THE PERIOD MAY 17, 1999
(INCEPTION) TO JUNE 30, 1999
STATEMENT OF OPERATIONS
STOCK
STOCK SELECT
INVESTMENT INCOME:
Income:
Dividends $ 1,251,925 $ 31,531
Interest 594,717 24,841
1,846,642 56,372
Expenses:
Management fees 723,766 20,499
Government fees 12,481 -
736,247 20,499
Net investment income 1,110,395 35,873
REALIZED and unrealized gain ON INVESTMENTS:
Net realized gain (loss) from investment
transactions 3,586,480 (55,645)
Increase (decrease) in net unrealized
appreciation on investments (3,282,092) 140,653
Net realized and unrealized gain (loss)
on investments 304,388 85,008
Net increase (decrease) in net assets
resulting from operations $ 1,414,783 $ 120,881
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
STOCK SELECT
STOCK STOCK SELECT FOR THE PERIOD
SIX MONTHS ENDED STOCK SIX MONTHS ENDED MAY 17, 1999
DECEMBER 31, 1999 YEAR ENDED DECEMBER 31, 1999 (INCEPTION) TO
(UNAUDITED) JUNE 30, 1999 (UNAUDITED) JUNE 30, 1999
</CAPTION>
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 1,110,395 $ 3,493,940 $ 35,873 $ 2,697
Net realized gain from investment
transactions 3,586,480 15,649,630 (55,645) 8,823
Increase (decrease) in net
unrealized appreciation on
investments (3,282,092) 4,475,877 140,653 31,387
Net increase in net assets
resulting from operations 1,414,783 23,619,447 120,881 42,907
Net equalization included in
the price of shares issued
and redeemed - (183,501) - -
DISTRIBUTIONS TO SHAREHOLDERS FROM:*
Net investment income (984,938) (3,667,370) (8,823) -
In excess of net investment income - (78,521) - -
Net realized gain (loss) from
investment transactions (12,047,144) (11,380,820) (37,638) -
Decrease in net assets
from distributions (13,032,082) (15,126,711) (46,461) -
INCREASE (DECREASE) FROM CAPITAL
SHARE TRANSACTIONS:
Proceeds from 447,090; 1,609,570;
485,532 and 210,685 shares sold,
respectively 8,846,599 30,716,658 4,834,951 2,079,639
Net asset value of 585,064;
369,217 and 4,695 shares issued
for reinvestment of distributions 10,882,195 7,133,312 14,219 -
19,728,794 37,849,970 4,849,170 2,079,639
Cost of 1,258,342; 3,022,551;
6,842 and 5,621 shares redeemed,
respectively (24,986,514) (58,614,795) (66,595) (55,706)
Net increase (decrease) in
net assets from capital share
transactions (5,257,720) (20,764,825) 4,782,575 2,023,933
Net increase (decrease) in
net assets (16,875,019) (12,455,590) 4,856,995 2,066,840
NET ASSETS:
Beginning of period 182,223,259 194,678,849 2,066,840 -
End of period (including
undistributed net investment
income of ($67,019); ($78,521);
($78,521) and $2,697,
respectively) $165,348,240 $182,223,259 $ 6,923,835 $ 2,066,840
*Distributions to shareholders:
Income dividends per share $ 0.12 $ 0.41 $ .06 $ -
Capital gains distribution per share $ 1.48 $ 1.24 $ .01 $ -
</TABLE>
See accompanying Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES - The Fund is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company. Its shares are currently
issued in two series (Stock and Stock Select) with each
series, in effect, representing a separate fund. The
following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its
financial statements. The policies are in conformity with
generally accepted accounting principles.
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 Income Taxes - The Fund's policy is to comply with
the requirements of the Internal Revenue Code that are
applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders.
Therefore, no federal income tax provision 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 December 31,
1999 (excluding commercial paper, repurchase agreements and
short-term securities), were as follows:
Other than
U.S. Government U.S. Government
Securities Securities
Stock Fund
Purchases $ 86,138,453 $ 7,382,139
Proceeds from sales 106,752,837 10,993,469
Stock Select Fund
Purchases $ 1,998,372 $ -
Proceeds from sales 70,588 -
3. MANAGEMENT FEES - UMB Bank, n.a. is the Fund's manager
and investment advisor 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 shareholder 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 the
collateral is sufficient to protect the Fund in the event of
default by the seller.
This report has been prepared for the information of the
Shareholders of UMB 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 UMB Scout Funds, are offered
only by the Prospectus, a copy of which may be obtained from
Jones & Babson, Inc.
UMB Scout Funds
100% No-Load Mutual Funds
Stock Fund
Stock Select Fund
Regional Fund
WorldWide Fund
WorldWide Select Fund
Capital Preservation Fund
Balanced Fund
Bond Fund
Kansas Tax-Exempt Bond Fund*
Money Market Fund
Federal Portfolio
Prime Portfolio
Tax-Free Money Market Fund
*Available in Kansas and Missouri only.
INVESTMENT ADVISORS AND MANAGER
UMB Bank, n.a., Kansas City, Missouri
AUDITORS
Baird, Kurtz & Dobson, Kansas City, Missouri
Legal Counsel
Stradley, Ronon, Stevens & Young, LLP
Philadelphia, Pennsylvania
CUSTODIAN
UMB Bank, n.a., Kansas City, Missouri
UNDERWRITER, DISTRIBUTOR
AND TRANSFER AGENT
Jones & Babson, Inc., Kansas City, Missouri
UMB SCOUT FUNDS
P.O. Box 219757
Kansas City, MO 64121-9757
Toll Free 800-996-2862
www.umb.com
"UMB", "Scout" and the "Scout" design are registered
service marks of UMB Financial Corporation.
