TO THE SHAREHOLDERS
Scout Regional Fund's total return (price change and reinvested distributions)
for third quarter 1995 was 6.07% in comparison to the unmanaged Value Line
Composite which earned 6.94%. For year to date, as of September 30, returns
were 18.54% and 21.22% for Scout Regional Fund and the Value Line Composite
Index, respectively.
As of September 30, 1995, average annual
com-pounded total returns for one year and since the change in Fund's
investment objective on
August 16, 1991 were 17.36% and 8.76%, respectively. Average annual
compounded total returns for one year, five years and the life of the Fund
(which includes performance prior to the change in investment objective)
were 17.36%, 9.94% and 5.66%, respectively. The Fund's
inception date is November 17, 1986. 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.
Small capitalization stocks remained under-performers for the first six months
of 1995, but showed much improved results in the third quarter. Although
large-capitalization stocks have become quite expensive, smaller stocks
remained relatively under-valued and continue to look attractive because of
their future earnings potential. If the lower interest rates we have seen
this year continue and inflation remains moderate, Scout Regional Fund should
be well-positioned for continued growth. As this market remains unsteady and
costly, we will continue to take a cautious approach to acquiring new stocks
for Scout Regional Fund.
During the third quarter, Scout Regional Fund established new stock positions
in St. Joseph Light & Power (utility) and Stimsonite Corp. (highway safety
products). We will continue to search for well managed, small capitalization
stocks that are value-oriented with long-term growth potential in line with
the high investment standards of Scout Regional Fund.
Top 10 Equity Holdings
Market Percent
Value of Total
Jones Medical Industries, Inc. $ 715,000 2.34%
Insituform Mid-America, Inc. Cl. A 640,000 2.10%
Layne Inc. 592,000 1.94%
Lincoln Telecommunications Co. 562,500 1.84%
Maytag Corp. 560,000 1.83%
NPC International Inc. Cl. B 559,000 1.83%
Kellwood Co. 556,875 1.82%
Southwestern Energy Co. 545,000 1.79%
Sanfilippo (John B. & Son), Inc. 540,000 1.77%
Caremark International Inc. 537,500 1.76%
Top 10 Equity Holdings Total: $ 5,807,875 19.02%
Note: All market values based on 9/30/95 statement of assets.
We appreciate you as a valued shareholder of the Scout Regional Fund and
welcome your questions or comments.
Sincerely,
Larry D. Armel
President
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
September 30, 1995
Market
Shares Company Value
COMMON STOCKS _ 86.50%
BASIC MATERIALS _ 7.68%
50,000 Amax Gold, Inc. $ 306,250
10,000 Atchison Casting Corp. 170,000
3,500 Cyprus Amax Minerals Co. 98,438
20,000 Fansteel, Inc. 140,000
30,000 Huntco, Inc. Cl. A 453,750
35,000 Laclede Steel Co. 363,125
25,000 Midwest Grain Products, Inc. 431,250
18,000 Petrolite Corp. 495,000
20,000 Santa Fe Pacific Gold 252,500
2,710,313
CAPITAL GOODS _ 10.76%
9,000 Bandag, Inc. 475,875
25,000 BHA Group Inc. Cl. A 337,500
5,000 Green (A.P.) Industries, Inc. 120,000
15,000 Harmon Industries, Inc. New 213,750
10,000 HON Industries Inc. 290,000
40,000 Insituform Mid-America, Inc. Cl. A 640,000
64,000 Layne Inc. 592,000
30,000 Myers (L.E.) Company Group 446,250
10,000 Noble Affiliates, Inc. 263,750
5,000 Paul Mueller Co. 163,750
17,000 Stimsonite Corp. 204,000
2,000 Valmont Industries Inc. 48,500
3,795,375
CONSUMER CYCLICAL _ 23.35%
1,500 Advantage Companies, Inc. 26,625
21,000 Angelica Corp. 527,625
20,000 Brown Group, Inc. 367,500
25,000 Brunswick Corp. 506,250
25,000 Caremark International Inc. 537,500
2,500 Casey's General Stores, Inc. 56,563
20,000 CPI Corp. 442,500
15,000 Dillard Department Stores, Inc. Cl. A 478,125
500 Donnelley (R.R.) & Sons 19,500
30,000 Flexsteel Industries, Inc. 337,500
27,000 Kellwood Co. 556,875
7,000 Lee Enterprises, Inc. 303,625
6,000 Leggett & Platt 147,750
6,000 Mallinckrodt Group, Inc. 237,750
8,000 May Department Stores Co. 350,000
32,000 Maytag Corp. 560,000
86,000 NPC International Inc. Cl. B 559,000
25,000 O'Sullivan Industries Holdings, Inc. 193,750
20,000 Outboard Marine Corp. 430,000
33,000 Safety-Kleen Corp. 482,625
60,000 Sanfilippo (John B. & Son), Inc. 540,000
3,000 Sonic Corp. 68,250
30,000 Stuart Entertainment, Inc. 135,000
75,000 Toastmaster Inc. 375,000
8,239,313
CONSUMER STAPLES _ 16.72%
18,000 Alberto-Culver Co. Cl. A 477,000
1,500 Alberto-Culver Co. Cl. B 45,750
15,000 Beverly Enterprises, Inc. 206,250
7,000 Clarcor Inc. 164,500
35,000 Exabyte Corp. 472,500
18,000 Fleming Companies Inc. 432,000
40,000 Isco, Inc. 460,000
40,000 Jones Medical Industries, Inc. 715,000
40,000 Lawter International, Inc. 450,000
5,000 Medicine Shoppe International, Inc. 221,250
1,500 Pioneer Hybrid International, Inc. 69,000
20,000 Rival Co. 405,000
35,000 Sealright Co. 455,000
10,000 Sigma-Aldrich Corp. 485,000
50,000 TCBY Enterprises, Inc. 231,250
34,000 VICORP Restaurants, Inc. 408,000
25,000 Winnebago Industries, Inc. 200,000
5,897,500
ENERGY _ 8.41%
9,750 Barrett Resources Corp. 219,375
7,500 Helmerich & Payne Inc. 210,937
3,500 Kerr-McGee Corp. 194,250
7,500 KN Energy, Inc. 204,375
26,000 Laclede Gas Co. 536,250
10,000 MAPCO, Inc. 515,000
40,225 Maverick Tube Corp. 321,800
13,000 Murpy Oil Corp.. 520,000
10,000 St. Mary Land & Exploration Co.. 142,500
10,000 Total Petroleum North America Ltd. 102,500
2,966,987
FINANCIAL _ 5.00%
5,000 Boatmen's Bancshares 185,000
15,000 Brenton Banks 301,875
1,500 Commerce Bancshares Inc. 59,250
14,000 Commerce Clearing House Cl. B 311,500
5,000 Edwards (A.G.), Inc. 133,125
1,500 Kansas City Life Insurance Co. 79,500
1,500 Magna Group, Inc. 36,375
2,000 Mercantile Bancorporation Inc. 89,500
7,500 Old Republic International 216,563
10,000 Reinsurance Group America, Inc. 352,500
1,765,188
MISCELLANEOUS _ 1.21%
60,000 B. I. Inc. 427,500
TECHNOLOGY _ 0.53%
5,000 DOVatron International Inc. 173,125
200 Emerson Electric Co. 14,300
187,425
TRANSPORTATION & SERVICES _ 1.08%
15,000 Werner Enterprises, Inc. 311,250
5,000 Yellow Corp. 68,750
380,000
UTILITIES _ 11.76%
20,000 California Energy Co., Inc. 410,000
26,000 Empire District Electric Co. 477,750
20,000 IES Industries, Inc. 532,500
17,000 Interstate Power Co. 463,250
15,000 Kansas City Power & Light Co. 354,375
30,000 Lincoln Telecommunications Co. 562,500
40,000 Southwestern Energy Co. 545,000
1,500 Sprint Corp. 52,500
11,500 St. Joseph Light & Power 349,312
10,000 Union Electric Co. 373,750
1,000 Utilicorp United, Inc. 28,125
4,149,062
TOTAL COMMON STOCKS _ 86.50% 30,518,663
Face Market
Amount Description Value
CONVERTIBLE CORPORATE BOND _ 1.07%
$ 384,000 Beverly Enterprises, Inc., Cv. Sub. Deb.,
7.625%, due March 15, 2003 376,320
SHORT-TERM CORPORATE NOTES _ 11.31%
500,000 Abbott Laboratories,
5.68%, due October 5, 1995 499,527
500,000 Bell Atlantic Financial Services, Inc.,
5.70%, due October 23, 1995 498,100
500,000 duPont (E.I.) deNemours & Co.,
5.70%, due October 4, 1995 499,604
500,000 Heinz (H.J.) Co.,
5.70%, due October 24, 1995 498,021
500,000 Marsh & McClennan Cos., Inc.,
5.73%, due October 10, 1995 499,124
500,000 Pfizer, Inc.,
5.68%, due October 20, 1995 498,343
500,000 Texaco, Inc.,
5.75%, due October 6, 1995 499,441
500,000 Xerox Credit Corp.,
5.70%, due October 25, 1995 497,942
TOTAL SHORT-TERM
CORPORATE NOTES _ 11.31% 3,990,102
REPURCHASE AGREEMENT _ 1.71%
605,000 Northern Trust Co.,
6.00%, due October 2, 1995
(Collateralized by U.S.
Treasury Notes, 4.00%,
due January 31, 1996) 605,000
TOTAL INVESTMENTS _ 100.59% $ 35,490,085
Other assets less liabilities _ (0.59%) (207,261)
TOTAL NET ASSETS _ 100.00%
(equivalent to $10.49 per share;
10,000,000 shares of $1.00 par
value capital shares authorized;
3,364,846 shares outstanding) $ 35,282,824
BASIS OF DETERMINING MARKET VALUE. Each investment is valued at the latest
sales price on September 30, 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.
