MESSAGE
To Our Shareholders
Babson Value Fund's eleventh full fiscal year ended on November 30, 1995.
In 1994, rising interest rates held stock prices in check even though
corporate earnings rose sharply. In contrast, although gains in corporate
profits were expected to be relatively modest in 1995, falling interest rates
resulted in increased earnings estimates and provided a powerful boost to
returns. Although the Funds' positive total return (price change and
reinvested distributions) of 32.1% was superb in absolute terms and exceeded
the average return of 30.1% for its "growth and income" peer group in Lipper's
Mutual Fund Performance Analysis, our "value" style was not in vogue.
Consequently, the unmanaged Standard & Poor's 500 return of large company
stocks was stronger at 36.8%.
Longer term comparisons with our peers in the Lipper and Morningstar
databases are included in the summaries below. The table shows the
consistency of the longer term record of the Fund. For the ten year period
the Fund's return placed it in the top 20% of its peer group in both databases.
The relative position is even stronger for the shorter three and five-year
periods_well within the top 10%.
The strong long-term record has continued to attract more investors. The
number of shareholders has increased to over 18,000, while net assets have
surged from $119.6 million a year ago to $293.4 million as of the end of our
fiscal year, an increase of 145%.
In the latest fiscal year, net assets per share increased from $25.19 to
$31.78. In December 1995, the Fund made its final distributions of the
calendar year. An ordinary income dividend of $0.1671, and long-term capital
gain of $0.3395 per share, totaled $0.5066. Those shareholders who elected to
reinvest their distributions received their additional shares at a price of
$31.47 per share. Total distributions in the fiscal year amounted to $1.2036
per share. Net investment income was 2.12% of average net assets for the year.
For corporate shareholders, 100% of ordinary income distributions qualify for
the corporate dividends received deduction.
The growth in assets resulted in a further slight reduction in our expense
ratio to 0.98% of average net assets. The average expense ratio for the
growth and income category as reported in Morningstar Mutual Funds is 1.24%.
In addition to that, the average 12b-1 charge is 0.32% and,
of course many of the other funds in the category have some form of sales
charges or "loads." Babson Value Fund has neither 12b-1 or sales charges.
We welcome the new investors who have joined us in the past year, and we
look forward to continuing our efforts to provide all our shareholders with
consistent, favorable returns in the future.
Sincerely,
Larry D. Armel
President
<PAGE>
<TABLE>
<CAPTION>
Babson Value Fund
1 Year 3 Years 5 Years 10 Years
11/30/94 to 11/30/92 to 11/30/90 to 11/30/85 to
11/30/95 11/30/95 11/30/95 11/30/95
</CAPTION>
<S> <C> <C> <C> <C>
Babson Value Fund Total Return 32.07% 18.69% 20.02% 14.64%
Lipper Growth & Income Funds Average Total Return 30.13% 12.27% 15.76% 12.97%
BVF Rank among Lipper Growth & Income Funds 160 11 14 22
# of Lipper Growth & Income Funds 421 248 189 117
Babson Value Fund Percentile, Top 38% 4% 7% 19%
Source: Lipper Analytical Securities Corporation
</TABLE>
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
11/30/94 to 11/30/92 to 11/30/90 to 11/30/85 to
11/30/95 11/30/95 11/30/95 11/30/95
</CAPTION>
<S> <C> <C> <C> <C>
Babson Value Fund Total Return 32.07% 18.69% 20.02% 14.64%
Morningstar Growth & Income Funds Average Total Return 30.83% 12.88% 15.13% 12.41%
BVF Rank among Morningstar Growth & Income Funds 191 5 10 19
# of Morningstar Growth & Income Funds 420 255 187 113
Babson Value Fund Percentile, Top 46% 2% 5% 17%
Source: Morningstar, Inc.
</TABLE>
Note: All returns for periods of longer than one year are compound annual
rates.
All returns for Babson Value Fund are net of all fees and expenses.
Returns for the growth and income averages are net of fees and
expenses, but do not include the impact of sales charges.
Morningstar includes S&P 500 index funds in its Growth & Income Fund
category, while Lipper has a separate category.
<PAGE>
PORTFOLIO REVIEW
Babson Value Fund is a no-load mutual fund which seeks long-term growth of
capital and income by investing in a diversified portfolio of common stocks
which are considered to be undervalued in relation to earnings, dividends
and/or assets. The Fund may be considered "contrarian" in nature in that
the portfolio will typically include shares of companies that are relatively
unpopular and out-of-favor with general investors.
The last two years have been difficult for practitioners of the value style
of investing. Since the last peak in the value style on September 30, 1993,
as defined by the S&P/BARRA Growth and Value indices, the growth subset of
the S&P 500 has returned 47% through the end of our fiscal year, while the
value companies have returned 33%, a margin favoring growth of 14 percentage
points for the two years and two months. The chart to the right shows the
ebbs and flows of the two styles since the prior trough for the value style
in December of 1991. When the line rose, value was stronger than growth. When
the line fell, growth had the upper hand. Considering only the twelve months
of our fiscal year, the growth style's lead was four percentage points. While it
is too soon to declare a change in the trend, the value style was stronger in
November and December of 1995 and appears to have a lead in January 1996. The
technology sector, a major component of the growth group has come under
pressure as the result of profit taking, some negative earnings surprises,
and a well publicized reduction in the sector by a large mutual fund group.
While much of the attention in the press during 1995 was on the spectacular
returns racked up by technology issues, most of their relative strength
occurred in the first half. A strong third quarter by the financial and
healthcare groups, combined with a fourth quarter technology correction made
financial stocks the winners for our fiscal year, closely followed by
healthcare. Low inflation, combined with slow economic growth resulted in
sub-par returns from the basic materials, energy and consumer cyclical
sectors. The chart to the right shows the economic sectors sorted from top to
bottom in the order of their returns (shown by the top bar) for the year. The
weight of each sector in the S&P 500 and in the Value Fund portfolio is shown
by the middle and bottom bar in each sector. The portfolio benefited by being
significantly overweighted in financial stocks relative to the market. This
helped to offset the negative impact of the holdings in retail and consumer
cyclical companies.
Portfolio turnover was a very low 6% during the year. Part of the reason for
this was the strong flow of new capital into the Fund. Our policy is keep
portfolio holdings equally weighted. In the absence of positive cash flow
portions of holdings that run up in size are sold to provide funds for
purchase of additional shares of temporarily
lagging holdings. With strong cash flow most of the rebalancing is
accomplished by putting the new money in the smallest holdings. The other
reason is that the market was strong for the whole year and portfolio
holdings that moved up in valuation maintained their relative strength
compared to the S&P 500. Our policy is to continue to hold fully valued
stocks as long as their relative strength is intact.
As has usually been the case, we benefited from merger and tender offers
during the year. Chase Manhattan and Chemical Bank announced their intention
to merge in the spring of 1996. The merger should result in substantial cost
savings, which will continue strength in earnings. Both stocks did well, and
Chase was up 71% for the year. Wallace Computer Services became the subject
of an unfriendly tender offer from Moore Corp. Ltd. their primary competitor.
Although the tender offer was unsuccessful, Wallace's shares rose 108% during
the year. First Interstate Bancorp became the subject of an unfriendly offer
by Wells Fargo. First Interstate then encouraged First Bank System to make a
competing friendly bid. The outcome has not yet been determined, but First
Interstate shares rose 91%. Lockheed merged with Martin Marietta and the
combined company ended the year up 74%.
In addition, we benefited from spin-offs. We received Allstate shares from
Sears. Sears gained 55%, bucking the general weakness in retail, Allstate was
up 88%, and the package rose 64% overall. Lastly, Eli Lilly had an exchange
offer for shares of a subsidiary, Guidant Corp. The Lilly shares that
remained Lilly at the end of the year rose 59%, while the one-third of Lilly
shares that became Guidant shares gained 108%, and the package was up 75%.
Although they were not involved in mergers, tender offers or spin-offs,
Student Loan Marketing, Student Loan Corp, Aetna Life, Boeing and Transamerica
also produced superb gains of 105%, 81%, 64%, 62% and 62%, respectively. The
student loan stocks extended their recoveries from the reflex, panic lows
that resulted from the announcement of the government's direct lending
program. Although both stocks have rebounded substantially, they sell for
only 15 and 12 times earnings, respectively. Aetna benefited from cost
cutting, stronger than expected earnings and the decision to sell its
property and casualty business to Travelers. Although Boeing's earnings are
depressed because of slower deliveries of older models and a machinists
strike, very strong orders for its new 777, which is just beginning to be
delivered, propelled the shares higher. Transamerica benefited from positive
earnings surprises that were common among financial stocks this year.
As we mentioned above, the consumer and retail issues were the weak spots in
1995. K mart, Reebok, Huffy, Apple Computer and J.C. Penney were all
depressed because of weak earnings brought on by weak sales and low
profitability. They were joined on the laggard list by Hanson, Overseas
Shipholding, Safety-Kleen, Salomon and Atlantic Richfield. As K mart's
position weakened over the last year, it always seemed that the stock had
been weaker than the fundamentals warranted, so we maintained our ownership.
This has happened a number of times in the past in other investments, and our
perseverance has been rewarded. While there is no assurance that it will be
in this case, our best judgment is that it will. We should also point out
that our opinion may change if we learn something that we do not currently
know.
With price/earnings ratios averaging 20% lower than the S&P 500, and
price/book value ratios averaging nearly 50% lower than the market index,
we continued to regard the portfolio as very attractively valued. Outside
services such as Morningstar and investment consultants who advise
institutional investors have measured our portfolio and have determined that
it has produced higher returns than average while taking lower than average
risk, particularly over the last three and five years. While there is no
guarantee that future results will produce the same characteristics, it is
our intent to continue to manage the portfolio in the same way that it has
been managed for over eleven years.
David L. Babson & Co. Inc.
PORTFOLIO REVIEW
Babson Value Fund versus S&P 500
Babson Value Fund's average annual compounded total returns for one, five and
ten year periods as of November 30, 1995, were 32.07%, 20.02% and 14.64%,
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.
<PAGE>
STATEMENT OF NET ASSETS
November 30, 1995
S&P MARKET VALUE
RANKING** SHARES COMPANY COST (NOTE 1-A)
COMMON STOCKS _ 94.12%
AEROSPACE _ 4.56%
A- 86,000 Boeing Co. $ 3,807,988 $ 6,267,250
NR 97,000 Lockheed Martin Corp. 4,053,414 7,117,375
7,861,402 13,384,625
AIRLINES _ 2.29%
NR 195,000 KLM Royal Dutch Airlines 5,179,699 6,727,500
BANKS _ 9.26%
B 114,000 Chase Manhattan Corp. 4,031,450 6,939,750
B- 134,000 First Bank System, Inc. 4,489,614 6,917,750
B 50,000 First Interstate Bancorp 3,350,883 6,700,000
A- 204,000 National City Corp. 5,303,376 6,604,500
17,175,323 27,162,000
CHEMICALS _ 2.31%
B+ 102,000 duPont (E.I.) deNemours & Co. 5,735,688 6,783,000
COMPUTER SOFTWARE _ 2.19%
B+ 148,000 Shared Medical Systems Corp. 4,195,452 6,419,500
COMPUTER SYSTEMS _ 4.33%
B+ 166,000 Apple Computer Inc. 6,506,778 6,328,750
B- 66,000 International Business
Machines Corp. 4,919,500 6,377,250
11,426,278 12,706,000
CONSUMER PRODUCTS _ 6.98%
NR 256,000 Grand Metropolitan PLC, ADR 6,628,913 6,944,000
B+ 676,800 Huffy Corp. 8,902,106 7,191,000
B+ 244,000 Reebok International Ltd. 7,727,093 6,344,000
23,258,112 20,479,000
DIVERSIFIED _ 2.40%
NR 461,000 Hanson PLC, ADR 8,015,771 7,030,250
ENVIRONMENTAL CONTROL _ 2.30%
B+ 473,000 Safety-Kleen Corp. 7,248,732 6,740,250
FINANCIAL SERVICES _ 11.70%
B 158,000 American Express Co. 4,619,491 6,715,000
B 173,000 Salomon Inc. 6,460,740 6,292,875
NR 194,000 Student Loan Corp. 4,029,772 6,862,750
A 109,000 Student Loan Marketing Assn. 4,044,203 7,643,625
B 89,000 Transamerica Corp. 4,516,933 6,819,625
23,671,139 34,333,875
FOREST PRODUCTS AND PAPER _ 6.80%
B+ 157,000 Potlatch Corp. 6,388,726 6,338,875
B+ 143,000 Weyerhaeuser Co. 5,733,300 6,470,750
B+ 118,000 Willamette Industries, Inc. 5,530,854 7,139,000
17,652,880 19,948,625
HEALTH _ 4.64%
NR 78,605 Guidant Corp. 1,349,333 2,937,862
A 44,477 Lilly (Eli) & Co. 2,636,875 4,425,461
NR 349,000 Tenet Healthcare* 5,232,492 6,238,375
9,218,700 13,601,698
INSURANCE _ 6.97%
B- 90,000 Aetna Life & Casualty Co. 4,743,716 6,603,750
NR 170,000 Allstate Corp. 4,706,073 6,970,000
A 46,000 General Re Corp. 5,403,286 6,882,750
14,853,075 20,456,500
OFFICE EQUIPMENT AND SUPPLIES _ 4.40%
A 107,000 Wallace Computer Services, Inc. 3,093,473 6,179,250
B- 49,000 Xerox Corp. 4,775,444 6,719,125
7,868,917 12,898,375
PETROLEUM _ 4.37%
B+ 59,000 Atlantic Richfield Co. 6,382,493 6,394,125
A 50,000 Royal Dutch Petroleum Co. 5,313,165 6,418,750
11,695,658 12,812,875
PROFESSIONAL SERVICES _ 4.43%
A 227,400 ABM Industries, Inc. 4,678,518 6,395,625
A- 144,000 PHH Corp. 5,510,483 6,588,000
10,189,001 12,983,625
RETAIL _ 9.24%
B+ 163,000 Harcourt General, Inc. 5,749,526 6,560,750
B+ 908,000 K mart Corp. 10,607,723 7,037,000
A- 149,000 Penney (J.C.) Co., Inc. 6,443,585 6,984,375
B- 166,000 Sears, Roebuck & Co. 5,012,003 6,536,250
27,812,837 27,118,375
TRANSPORTATION _ 2.52%
B- 369,000 Overseas Shipholding Group, Inc. 7,108,540 7,380,000
UTILITIES _ 2.43%
B+ 185,000 Texas Utilities Co. 6,148,235 7,122,500
TOTAL COMMON STOCKS _ 94.12% 226,315,439 276,088,573
SHORT-TERM CORPORATE NOTES _ 4.09%
$ 3,000,000 Ford Motor Credit Co.,
5.75%, due December 6, 1995 $ 3,000,000 $ 3,000,000
5,000,000 General Electric Capital Corp.,
5.76%, due December 6, 1995 5,000,000 5,000,000
4,000,000 Sears Roebuck Acceptance Corp.,
5.76%, due December 13, 1995 4,000,000 4,000,000
TOTAL SHORT-TERM CORPORATE NOTES _ 4.09% 12,000,000 12,000,000
REPURCHASE AGREEMENT _ 2.95%
8,665,000 UMB Bank, n.a.,
5.40%, due December 1, 1995
(Collateralized by $8,838,207
U.S. Treasury Notes,
7.625%, due April 30, 1996) 8,665,000 8,665,000
TOTAL INVESTMENTS _ 101.16% $ 246,980,439 296,753,573
Other assets less liabilities _ (1.16%) (3,394,940)
TOTAL NET ASSETS _ 100.00%
(equivalent to $31.78 per share; 10,000,000 shares of
$1.00 par value capital shares authorized;
9,230,329 shares outstanding) $ 293,358,633
For federal income tax purposes, the identified cost of investments owned at
November 30, 1995 was $247,239,915.
Net unrealized appreciation for federal income tax purposes was $49,513,658,
which is comprised of unrealized appreciation of $58,112,113 and unrealized
depreciation of $8,598,455.
*Securities on which no cash dividends were paid during the preceding year.
**Standard & Poor's rankings are derived from statistical measurements of
past earnings and dividend stability and growth.
NR _ indicates no ranking is available. Rankings are not covered by the
report of independent auditors.
<PAGE>
STATEMENT OF ASSETS
AND LIABILITIES
November 30, 1995
ASSETS:
Investments in securities:
Common stocks, at market value (identified
cost $226,315,439) $ 276,088,573
Short-Term corporate notes, at cost _ approximates
market value 12,000,000
Repurchase agreement, at cost _ approximates market value 8,665,000
Total investments 296,753,573
Cash 15,389
Dividends receivable 680,786
Interest receivable 21,020
Total assets 297,470,768
LIABILITIES AND NET ASSETS:
Payable for investments purchased 4,112,135
Total liabilities 4,112,135
NET ASSETS $ 293,358,633
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 235,783,155
Accumulated undistributed income:
Undistributed net investment income 4,571,623
Undistributed net realized gain on investment transactions 3,230,721
Net unrealized appreciation in value of investments 49,773,134
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 293,358,633
Capital shares, $1.00 par value
Authorized 10,000,000
Outstanding 9,230,329
NET ASSET VALUE PER SHARE $ 31.78
<PAGE>
STATEMENT OF OPERATIONS
Year Ended November 30, 1995
INVESTMENT INCOME:
Income:
Dividends $ 5,306,758
Interest 876,624
6,183,382
Expenses (Note 2):
Management fees 1,892,581
Registration fees and expenses 60,732
1,953,313
Net investment income (Note 1-B) 4,230,069
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain from investment transactions (excluding
maturities of short-term commercial notes and repurchase
agreements):
Proceeds from sales of investments 14,974,738
Cost of investments sold 11,745,474
Net realized gain from investment transactions 3,229,264
Unrealized appreciation of investments:
Beginning of year 4,649,589
End of year 49,773,134
Unrealized appreciation of investments during the year 45,123,545
Net gain on investments 48,352,809
Increase in net assets resulting from operations $ 52,582,878
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS
For The Two Years Ended November 30, 1995
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income $ 4,230,069 $ 1,749,234
Net realized gain from investment transactions 3,229,264 2,907,083
Unrealized appreciation (depreciation) of
investments during the year 45,123,545 (4,771,718)
Net increase (decrease) in net assets
resulting from operations 52,582,878 (115,401)
Net equalization included in the price of shares
issued and redeemed 1,782,297 1,101,452
DISTRIBUTIONS TO SHAREHOLDERS FROM:**
Net investment income (3,843,830) (1,016,285)
Net realized gain from investment transactions (2,881,610) (1,551,963)
Total distributions to shareholders (6,725,440) (2,568,248)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:*
Proceeds from shares sold 160,790,293 105,398,105
Net asset value of shares issued for
reinvestment of distributions 5,928,779 2,436,145
166,719,072 107,834,250
Cost of shares repurchased (40,566,129) (28,885,735)
Net increase from capital share transactions 126,152,943 78,948,515
Total increase in net assets 173,792,678 77,366,318
NET ASSETS:
Beginning of year 119,565,955 42,199,637
End of year (including undistributed net
investment income of $4,571,623 in 1995
and $2,403,087 in 1994) $ 293,358,633 $ 119,565,955
Shares issued and repurchased:
Number of shares sold 5,705,141 4,126,746
Number of shares issued for reinvestment
of distributions 225,453 96,021
5,930,594 4,222,767
Number of shares repurchased (1,446,569) (1,140,429)
Net increase 4,484,025 3,082,338
Distributions to shareholders:
Income dividends per share $ .60 $ .3982
Capital gains distribution per share $ .6036 $ .9109
<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.
A. Security Valuation _ Corporate stocks and bonds traded on a national
securities exchange are valued at the latest sales price, or if no sale was
reported on that date, the mean between the closing bid and asked price is
used.
Securities which are traded over-the-counter are priced at the mean between
the latest bid and asked price. Securities not currently traded are valued at
fair value as determined by the Board of Directors.
B. Federal and State Taxes _ It is the Fund's policy 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. The Fund has
designated $2,735,979 as capital gain dividends.
C. Equalization _ The Fund uses the accounting practice of 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.
D. Other _ Security transactions are accounted for on the date the securities
are purchased or sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Realized gains and losses from investment
transactions and unrealized appreciation and depreciation of investments are
reported on the identified cost basis.
2. MANAGEMENT FEES:
Management fees were paid to Jones & Babson, Inc. at the rate of .95 of 1%
per annum of the average daily net asset value of the Fund for services which
include administration, and all other operating expenses of the Fund except
the cost of acquiring and disposing of portfolio securities, the taxes, if
any, imposed directly on the Fund and its shares and the cost of qualifying
the Fund's shares for sale in any jurisdiction. Certain officers and/or
directors of the Fund are also officers and/or directors of Jones & Babson,
Inc.
3. INVESTMENT TRANSACTIONS:
Investment transactions for the year ended November 30, 1995 (excluding
maturities of short-term commercial notes and repurchase agreements) are as
follows:
Purchases $ 129,568,534
Proceeds from sales 14,974,738
<PAGE>
FINANCIAL HIGHLIGHTS
Condensed data for a share of capital stock outstanding throughout each year.
<TABLE>
<CAPTION>
Years Ended November 30,
1995 1994 1993 1992 1991
</CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $25.19 $25.36 $22.24 $18.74 $16.20
Income from investment operations:
Net investment income .589 .562 .543 .649 .711
Net gains or losses on securities
(both realized and unrealized) 7.205 .577 3.932 3.565 2.539
Total from investment operations 7.794 1.139 4.475 4.214 3.250
Less distributions:
Dividends from net investment income (.60) (.398) (1.030) (.714) (.710)
Distributions from capital gains (.604) (.911) (.325) _ _
Total distributions (1.204) (1.309) (1.355) (.714) (.710)
Net asset value, end of year $31.78 $25.19 $25.36 $22.24 $18.74
Total return 32% 5% 21% 23% 21%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 293 $ 120 $ 42 $ 34 $ 25
Ratio of expenses to average net assets .98% .99% 1.00% 1.01% 1.01%
Ratio of net investment income to
average net assets 2.12% 2.32% 2.34% 3.10% 3.82%
Portfolio turnover rate 6% 14% 26% 17% 31%
</TABLE>
<PAGE>
REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS
The Board of Directors and Shareholders of
Babson Value Fund, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the statement of net assets, of Babson Value Fund, Inc., as of
November 30, 1995, the related statements of operations for the year then
ended, 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. Our procedures included confirmation of
investments owned as of November 30, 1995, by correspondence with the
custodian. As to securities relating to uncompleted transactions, we
performed other 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 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
Babson Value Fund, Inc. at November 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.
Kansas City, Missouri
December 28, 1995
This report has been prepared for the information of the Shareholders of
Babson Value 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 Babson Funds are
offered only by the Prospectus, a copy of which may be obtained from Jones
& Babson, Inc.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000753901
<NAME> BABSON VALUE FUND INC
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-END> NOV-30-1995
<INVESTMENTS-AT-COST> 246980439
<INVESTMENTS-AT-VALUE> 196753573
<RECEIVABLES> 701806
<ASSETS-OTHER> 15389
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 297470768
<PAYABLE-FOR-SECURITIES> 4112135
<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 4112135
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<PAID-IN-CAPITAL-COMMON> 235783155
<SHARES-COMMON-STOCK> 9230329
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<ACCUMULATED-NII-CURRENT> 4571623
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