Scout Regional Fund
(Formerly UMB Heartland Fund)
A no-load mutual fund
that seeks long-term growth
of both capital and income
by investing in smaller
regional companies.
Report for Quarter Ending
March 31, 1995
TO THE SHAREHOLDERS
Scout Regional Fund (formerly UMB Heartland Fund) had a total return (price
change and reinvested distributions) of 5.76% for the first calendar quarter
of 1995 in comparison to the unmanaged Value Line Composite and Standard &
Poor's 500 which earned 5.83% and 9.73%, respectively.
As of March 31, 1995, average annual compounded total returns for one year
and since the change in the Fund's investment objective on August 16, 1991
were 7.75% and 6.61%, respectively. Average annual compounded total returns
for five years and the life of the Fund (which includes performance prior to
the change in investment objective) were 6.80% and 4.57%, 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.
After a difficult year in the stock market during 1994, the market rallied
during the first quarter of 1995 as a result of rising profits, a growing
economy and low inflation. Large capitalization stocks fared better than
small cap stocks which in general were weaker performers. Small cap stocks
still remain drastically under-valued and their growth potential continues
to be unrealized. The Fund's portfolio should be well-positioned to benefit
as the prices of small-cap stocks begin to rise. Cash reserves at the end of
the quarter were approximately 15%.
Top 10 Equity Holdings
<TABLE>
<CAPTION>
Market Percent
Value of Total
<S> <c > <C>
Puritan-Bennett Corp. 561,000 2.23%
Reinsurance Group America, Inc. 542,500 2.16%
Southwestern Energy Co. 525,000 2.09%
Layne Inc. 472,000 1.88%
Kerr-McGee Corp. 459,000 1.83%
VICORP Restaurants, Inc. 457,500 1.82%
Jones Medical Industries, Inc. 457,125 1.82%
Empire District Electric Co. 451,750 1.80%
Safety-Kleen Corp. 446,875 1.78%
May Department Stores Co. 444,000 1.77%
Top 10 Equity Holdings Total: 4,816,750 19.17%
</TABLE>
Note: All market values based on 3/31/95 statement of assets.
We benefited from take-over opportunities involving Pet, Inc. (food) and
Worthen Banking Corp. (finance). In the current unstable market, emphasis
will remain on the selection of value-oriented stocks with low volatility
to enhance the Fund as a small capitalization growth fund.
We are committed to serving you as a valued shareholder and encourage and
welcome your questions and comments.
Sincerely,
LARRY D. ARMEL
Larry D. Armel
President
<PAGE>
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.
FINANCIAL STATEMENTS
Statement of Net Assets
March 31, 1995
<TABLE>
<CAPTION
Shares Company Market Value
<S> <C> <C>
COMMON STOCKS - 84.93%
BASIC MATERIALS - 5.67%
50,000 Amax Gold, Inc. $ 293,750
3,500 Cyprus Amax Minerals Co. 99,313
20,000 Fansteel, Inc. 140,000
30,000 Laclede Steel Co. 333,750
10,000 Midwest Grain Products, Inc. 180,000
14,000 Petrolite Corp. 378,000
20,000 Santa Fe Pacific Gold 252,500
1,677,313
CAPITAL GOODS - 9.37%
10,000 Baldor Electric Co. 277,500
3,000 Bandag, Inc. 171,375
25,000 BHA Group Inc. Cl. A 287,500
1,500 Emerson Electric Co. 99,750
1,000 Federal Signal Corp. 21,625
7,500 Green (A.P.) Industries, Inc. 141,563
10,000 HON Industries Inc. 270,000
40,000 Insituform Mid-America, Inc. Cl. A 420,000
64,000 Layne Inc. 472,000
30,000 Myers (L.E.) Company Group 348,750
500 Noble Affiliates, Inc. 13,688
5,000 Paul Mueller Co. 155,000
4,500 Valmont Industries Inc. 92,250
2,771,001
CONSUMER CYCLICAL _ 23.31%
1,500 Advantage Companies, Inc. 22,875
16,000 Angelica Corp. 440,000
14,000 Brown Group, Inc. 406,000
8,000 Brunswick Corp. 161,000
15,000 Caremark International 296,250
10,000 Casey's General Stores, Inc. 158,750
20,000 CPI Corp. 317,500
15,000 Dillard Department Stores, Inc. Cl. A 414,375
2,000 Donnelley (R.R.) & Sons 68,750
5,000 Flexsteel Industries, Inc. 58,750
15,000 Kellwood Co. 279,375
10,000 Lee Enterprises, Inc. 353,750
10,000 Leggett & Platt 420,000
10,000 Mallinckrodt Group Inc. 337,500
12,000 May Department Stores Co. 444,000
25,000 Maytag Corp. 428,125
9,000 NPC International Inc. Cl. A 46,125
77,000 NPC International Inc. Cl. B 365,750
15,000 O'Sullivan Industries Holdings, Inc. 150,000
15,000 Outboard Marine Corp. 315,000
25,000 Safety-Kleen Corp. 446,875
48,000 Sanfilippo (John B. & Son), Inc. 369,000
10,000 Sonic Corp. 262,500
30,000 Stuart Entertainment, Inc. 146,250
34,000 Toastmaster Inc. 187,000
6,895,500
CONSUMER STAPLES - 18.26%
7,500 Alberto-Culver Co. Cl. A 196,875
2,500 Alberto-Culver Co. Cl. B 74,062
1,500 Beverly Enterprises, Inc. 21,750
20,000 Clarcor Inc. 422,500
7,500 DEKALB Genetics Corp. Cl. B 249,375
15,000 Exabyte Corp. 258,750
18,000 Fleming Companies Inc. 407,250
35,000 Isco, Inc. 380,625
53,000 Jones Medical Industries, Inc. 457,125
25,000 Lawter International, Inc. 328,125
12,000 Medicine Shoppe International, Inc. 363,000
10,000 Pioneer Hybrid International, Inc. 360,000
24,000 Puritan-Bennett Corp. 561,000
15,000 Sealright Co. 285,000
10,000 Sigma-Aldrich Corp. 387,500
10,000 TCBY Enterprises, Inc. 47,500
30,000 VICORP Restaurants, Inc. 457,500
15,000 Winnebago Industries, Inc. 142,500
5,400,437
ENERGY - 7.32%
7,500 Helmerich & Payne Inc. 203,437
9,000 Kerr-McGee Corp. 459,000
10,000 KN Energy, Inc. 240,000
20,000 Laclede Gas Co. 390,000
7,500 MAPCO, Inc. 418,125
25,000 Maverick Tube Corp. 221,875
10,000 Plains Petroleum Co. 233,750
2,166,187
FINANCIAL - 8.72%
7,500 Boatmen's Bancshares 226,875
15,000 Brenton Banks 270,000
7,875 Commerce Bancshares Inc. 242,156
14,000 Commerce Clearing House Cl. B 238,000
15,000 Edwards (A.G.), Inc. 330,000
1,500 Kansas City Life Insurance Co. 69,000
5,000 Magna Group, Inc. 100,000
3,500 Mercantile Bancorporation Inc. 127,750
18,000 Old Republic International 432,000
20,000 Reinsurance Group America, Inc. 542,500
2,578,281
MISCELLANEOUS - 1.32%
60,000 B. I. Inc. 390,000
TECHNOLOGY - 0.93%
2,000 Data Transmission Network Corp. 49,500
12,000 DOVatron International Inc. 225,000
274,500
TRANSPORTATION & SERVICES - 0.27%
5,000 Yellow Corp. 80,000
UTILITIES - 9.76%
27,000 California Energy Co., Inc. 432,000
26,000 Empire District Electric Co. 451,750
17,000 Interstate Power Co. 405,875
15,000 Kansas City Power & Light Co. 341,250
20,000 Lincoln Telecommunications Co. 305,000
35,000 Southwestern Energy Co. 525,000
1,500 Sprint Corp. 45,375
10,000 Union Electric Co. 353,750
1,000 Utilicorp United, Inc. 28,125
2,888,125
TOTAL COMMON STOCKS - 84.93% 25,121,344
</TABLE>
<TABLE>
<CAPTION>
Face Amount Description Market Value
<S> <C> <C>
CONVERTIBLE CORPORATE BOND - 0.82%
$ 250,000 Beverly Enterprises, Inc., Cv. Sub. Deb.,
7.625%, due March 15, 2003 241,250
SHORT-TERM CORPORATE NOTES - 10.09%
500,000 Bell Atlantic Corp.,
5.95%, due April 19, 1995 497,603
500,000 BellSouth Corp.,
5.94%, due April 19, 1995 497,773
500,000 duPont (E.I.) deNemours & Co.,
5.93%, due April 25, 1995 497,117
500,000 Penney (J.C.) Funding Corp.,
5.95%, due April 19, 1995 496,612
500,000 PepsiCo, Inc.,
5.95%, due April 26, 1995 497,521
500,000 Raytheon Co.,
5.93%, due April 3, 1995 498,847
TOTAL SHORT-TERM
CORPORATE NOTES - 10.09% 2,985,473
REPURCHASE AGREEMENT - 3.47%
1,025,000 Northern Trust Co.,
5.50%, due April 3, 1995
(Collateralized by U.S.
Treasury Notes, 8.625%,
due October 15, 1995) 1,025,000
TOTAL INVESTMENTS - 99.31% $ 29,373,067
Other assets less liabilities - 0.69% 205,270
TOTAL NET ASSETS - 100.00%
(equivalent to $9.73 per share;
10,000,000 shares of $1.00 par
value capital shares authorized;
3,040,661 shares outstanding) $ 29,578,337
</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 Regional 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.
