SCOUT
REGIONAL
FUND
A no-load mutual fund
that seeks long-term
growth of both capital
and income by investing
in smaller regional
companies.
Annual Report
June 30, 1996
TO THE SHAREHOLDERS
Scout Regional Fund's total return (price change and reinvested
distributions) for fiscal year ended June 30, 1996 was 15.53% in
comparison to the unmanaged Value Line Composite index which
earned 16.14% for the same time period.
Small capitalization stocks lagged their larger capitalization
counterparts throughout 1995 but showed their growth potential in
first quarter 1996. Second quarter also produced impressive
returns although weaker than first quarter as over-valued stocks
retreated in price. The strength of small capitalization stocks in
1996 has been due to stronger earnings, better valuation than
larger capitalization stocks, and heavy cash inflows into
aggressive growth mutual funds. In fact, $121 billion has flowed
into equity mutual funds since the beginning of 1996. The average
investor's market confidence has increased as well as their
tolerance for the more volatile and riskier smaller capitalization
stocks.
Scout Regional Fund has been under-weighted in the technology
sector which has fared well for the Fund as technology stocks have
recently fallen in price. The Fund remains over-weighted in the
consumer cyclical sector where under-valued and better-priced
stocks can be found. The Fund has a heavier weighting in utility
stocks as a defensive position against a possible market
correction in this expensive market. Utility stocks should also
benefit from increased merger activity after deregulation.
Positive economic reports indicating a growing economy early in
1996 caused an immediate negative market reaction in February.
Stocks faltered and interest rates rose in response to rising
inflationary fears. So far, inflation remains moderate, but the
market's increased instability has led to a cautious approach to
the market and retention of a significant cash reserve. This cash
reserve should serve well as additional protection in an adverse
market and provide liquidity when buying opportunities become
available.
For the six months ending June 30, shareholders received an
ordinary income dividend of $.10 per share and a long-term capital
gain of $.40 per share. For corporate shareholders, 64.95% of
ordinary income distributions qualify for the corporate dividends
received deduction.
We appreciate you as a valued shareholder of the Scout Regional
Fund and continually welcome your questions or comments.
Top 10 Equity Holdings
Market Percent
Value of Total
NPC International, Inc. $ 870,750 2.08%
Layne, Inc. 806,000 1.92%
B.I., Inc. 795,000 1.90%
Southwestern Energy Co. 706,250 1.69%
Safety Kleen Corp. 700,000 1.67%
Lawter International, Inc. 687,500 1.64%
Kellwood Co. 643,125 1.53%
Clarcor, Inc. 618,750 1.48%
Kerr McGee Corp. 608,750 1.45%
Union Electric Co. 603,750 1.44%
Top 10 Equity Holdings Total: 7,039,875 16.80%
NOTE: All market values based on 6/30/96 statement of assets.
GRAPH -- Equity-82%; Cash & Equivalents-18%
Historical Distributions
Total
Calendar Dividends Capital Gains Distribution
Year per Share per Share per Share
1992 0.115 - 0.115
1993 0.138 - 0.138
1994 0.180 0.171 0.351
1995 0.190 0.705 0.895
6 mos 1996 0.100 0.400 0.500
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 other applicable deposit insurance. These shares involve
investment risks, including the possible loss of the principal
amount invested.
GRAPH -- Scout Regional Fund versus Russell 2000 and Value Line
Hypothetical Growth of $10,000
As of June 30, 1996, average annual compounded total returns
for one year and since the change in the Fund's
investment objectives on August 16, 1991 were 15.53% and
9.26%, respectively. Average annual compounded
total returns for five years and the life of the Fund,
December 18, 1986 (which includes performance prior to
the change in investment objective) were 8.91% and 6.20%,
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.
FINANCIAL STATEMENTS
Statement of Net Assets
June 30, 1996
<TABLE>
<CAPTION>
Market
Shares Company Cost Value
</CAPTION>
<S> <C> <C> <C>
COMMON STOCKS - 81.10%
BASIC MATERIALS - 7.44%
50,000 Amax Gold, Inc. $ 372,842 $ 275,000
15,000 Atchison Casting Co.* 208,125 236,250
18,000 Cyprus Amax Minerals Co. 460,965 407,250
40,000 Fansteel, Inc. 272,177 250,000
30,000 Huntco, Inc. Cl. A 534,460 555,000
35,000 Laclede Steel Co.* 455,024 220,937
25,000 Midwest Grain Products, Inc. 495,000 325,000
18,000 Petrolite Corp. 523,424 565,875
20,000 Santa Fe Pacific Gold 256,478 282,500
3,578,495 3,117,812
CAPITAL GOODS - 10.20%
12,500 Bandag, Inc. 683,892 600,000
27,500 Bha Group, Inc. 334,521 364,375
25,000 Green (A.P.) Industries Inc. 426,783 506,250
18,000 Harmon Industries, Inc. 279,000 292,500
14,925 Hon Industries, Inc. 373,163 425,362
50,000 Instituform Technologies Inc., Cl. A 483,624 387,500
62,000 Layne Inc.* 379,889 806,000
50,000 Myr Group, Inc. 458,966 568,750
4,000 Noble Affiliates, Inc. 97,200 151,000
5,000 Paul Mueller Company 152,913 170,000
3,669,951 4,271,737
CONSUMER CYCLICAL - 21.79%
22,000 Angelica Corp. 554,777 519,750
15,000 Brown Group, Inc. 414,162 260,625
29,000 Brunswick Corp. 485,274 580,000
35,000 CPI Corp. 553,113 577,500
15,000 Caremark International, Inc. 261,870 378,750
2,500 Caseys General Stores, Inc. 20,156 49,688
6,000 Dillards Dept. Stores, Inc. Cl. A 150,936 219,000
10,000 Donnelley (R.R.) & Sons 340,187 348,750
20,000 First Alert, Inc. 132,500 80,000
35,000 Flexsteel Industries, Inc. 370,785 411,250
35,000 Kellwood Co. 618,873 643,125
7,000 Lee Enterprises, Inc. 108,137 165,375
4,000 Leggett & Platt 72,600 111,000
10,000 Mallinckrodt Group, Inc. 318,057 388,750
3,000 May Department Stores Co. 93,410 131,250
24,000 Maytag Corporation 356,950 501,000
86,000 NPC International, Inc. Cl. B 526,340 870,750
35,000 O'Sullivan Industries Holdings, Inc.* 269,875 258,125
30,000 Outboard Marine Corp. 535,220 543,750
480 Payless Shoesource, Inc.* 10,105 15,240
20,000 Republic Group, Inc. 263,500 285,000
40,000 Safety-Kleen Corp. 661,240 700,000
80,000 Sanfilippo (John B & Son), Inc.* 768,235 490,000
1,500 Sonic Corp.* 17,437 36,375
34,000 Stuart Entertainment, Inc.* 231,106 225,250
75,000 Toastmaster Inc. 484,495 337,500
8,619,340 9,127,803
CONSUMER STAPLES - 12.43%
15,000 Alberto-Culver Co. Cl. A 363,695 600,000
20,000 Beverly Enterprises, Inc.* 223,500 240,000
25,000 Clarcor Inc. 465,645 618,750
35,000 Exabyte Corp.* 514,594 457,187
50,000 Isco, Inc. 543,981 475,000
55,000 Lawter International, Inc. 667,303 687,500
18,000 Rival Co. 261,000 414,000
20,000 Sealright Co. 313,875 217,500
8,000 Sigma-Aldrich Corp. 349,063 428,000
82,500 TCBY Enterprises, Inc. 383,674 350,625
40,000 Vicorp Restaurants, Inc.* 584,125 490,000
28,000 Winnebago Industries, Inc. 230,025 231,000
4,900,480 5,209,562
ENERGY - 9.71%
9,000 Barrett Resources Corp.* 173,772 267,750
7,500 Helmerich & Payne Inc. 188,375 274,688
10,000 Kerr-McGee Corp. 556,766 608,750
4,000 Kn Energy, Inc. 89,700 134,000
26,000 Laclede Gas Co. 525,205 581,750
9,000 Mapco, Inc. 493,069 507,375
40,000 Maverick Tube Corp.* 296,949 470,000
12,000 Murphy Oil Corp. 484,100 544,500
11,500 St Joseph Light & Power Co. 312,513 319,125
10,000 St Mary Land & Exploration 121,250 167,500
20,000 Total Petroleum North America Ltd. 188,500 195,000
3,430,199 4,070,438
FINANCIAL - 2.57%
2,500 Boatmen's Bancshares 54,525 100,312
12,000 Brenton Banks 222,000 291,000
1,575 Commerce Bancshares Inc. 39,107 53,747
650 Edwards (A.G.), Inc. 10,839 17,631
1,500 Kansas City Life Insurance Co. 60,017 81,750
1,500 Magna Group, Inc. 27,750 36,000
10,000 Old Republic International 195,119 215,000
7,500 Reinsurance Group of America, Inc. 200,063 283,125
809,420 1,078,565
MISCELLANEOUS - 3.71%
15,000 Acx Technologies* 227,625 298,125
60,000 B.I. Inc.* 297,250 795,000
5,000 Lawson Products 107,500 126,250
40,000 Stimsonite Corp.* 382,000 335,000
1,014,375 1,554,375
TECHNOLOGY - 0.21%
3,500 DII Group Inc. 64,531 89,250
TRANSPORTATION & SERVICE - 0.93%
15,000 Werner Enterprises, Inc. 288,750 390,000
UTILITIES - 12.11%
18,000 Calenergy, Inc. 289,055 459,000
32,000 Empire District Electric Co. 604,660 552,000
15,000 Ies Industries, Inc. 359,313 448,125
15,000 Interstate Power Co. 422,780 481,875
8,000 Kansas City Power & Light Co. 169,855 220,000
36,000 Lincoln Telecommunications Co. 547,862 589,500
50,000 Southwestern Energy Co. 712,580 706,250
15,000 Union Electric Co. 565,250 603,750
15,000 Utilicorp United, Inc. 407,568 414,375
20,000 Western Resources, Inc. 587,281 597,500
4,666,204 5,072,375
TOTAL COMMON STOCK - 81.10% 31,041,745 33,981,917
<FN>
<F1>*Non-income producing security
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<TABLE>
<CAPTION>
Face Market
Amount Description Cost Value
</CAPTION>
<S> <C> <C> <C>
CONVERTIBLE CORPORATE BONDS - 0.87%
$ 384,000 Beverly Enterprises, Inc. CV. Sub. Deb., 7.625%
due March 15, 2003 377,010 362,880
SHORT-TERM CORPORATE NOTES - 16.65%
500,000 AIG Funding, Inc., 5.30%, due July 23, 1996 498,307 498,307
500,000 Air Products & Chemicals, 5.34%, due July 16, 1996 498,813 498,813
500,000 Ameritech Cap Funding Corp., 5.35%, due July 12, 1996 499,108 499,108
500,000 Aon Corp., 5.33%, due July 2, 1996 499,852 499,852
500,000 Chevron Oil Finance Co., 5.32%, due August 6, 1996 497,266 497,266
500,000 Coca Cola Co., 5.30%, due July 25, 1996 498,160 498,160
500,000 Deere & Co., 5.35%, due July 24, 1996 498,217 498,217
500,000 Dover Corp., 5.34%, due July 17, 1996 498,739 498,739
500,000 du Pont (E.I.) de Nemours & Co., 5.27%, due July 19, 1996 498,609 498,609
500,000 Gannett Co., Inc., 5.34%, due July 19, 1996 498,591 498,591
500,000 Heinz H.J., 5.37%, due July 30, 1996 497,763 497,763
500,000 Lilly Eli & Co., 5.34%, due July 26, 1996 498,072 498,072
500,000 Phillip Morris Cos., 5.38%, due July 15, 1996 498,879 498,879
500,000 Toys 'R' Us, 5.36%, due July 30, 1996 497,767 497,767
TOTAL SHORT-TERM CORPORATE NOTES - 16.65% 6,978,143 6,978,143
REPURCHASE AGREEMENT - 2.26%
945,000 Northern Trust Repo, 5.30%, due July 1, 1996
(Collateralized by $943,000 par value 6.125%,
note due March 31, 1998 delivery value $945,244) 945,000 945,000
TOTAL INVESTMENTS - 100.88% $ 39,341,898 42,267,940
Other assets less liabilities - (0.88%) (366,780)
TOTAL NET ASSETS - 100.00%
(equivalent to $10.38 per share;
10,000,000 shares of $1.00 par value
value capital shares authorized;
4,035,668 shares outstanding) $ 41,901,160
</TABLE>
For federal income tax purposes, the identified cost of investments
owned at June 30, 1996 was $39,341,898.
Net unrealized appreciation for federal income tax purposes was
$2,926,042, which is comprised of unrealized appreciation of
$5,106,309 and unrealized depreciation of $2,180,267.
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 $39,341,898) $ 42,267,940
Dividends receivable 55,548
Interest receivable 8,818
Receivable for investments sold 466,606
Total assets 42,798,912
LIABILITIES AND NET ASSETS:
Disbursements in excess of demand deposit cash 7,378
Payable for investments purchased 890,374
Total liabilities 897,752
NET ASSETS $ 41,901,160
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 38,331,934
Accumulated undistributed income:
Net investment loss (1,206)
Accumulated net realized gain on investment transactions 644,390
Net unrealized appreciation of investments 2,926,042
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 41,901,160
Capital shares, $1.00 par value
Authorized 10,000,000
Outstanding 4,035,668
NET ASSET VALUE PER SHARE $ 10.38
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Operations
For the Period of January 1, 1996 to June 30, 1996
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends $ 327,741
Interest 233,233
560,974
Expenses:
Management fees 166,602
Governmental fees 5,283
171,885
Net investment income 389,089
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain from investment transactions (excluding repurchase agreements
and short-term corporate notes):
Proceeds from sales of investments 4,562,840
Cost of investments sold 2,974,893
Net realized gain from investment transactions 1,587,947
Unrealized appreciation (depreciation) of investments:
Beginning of year 1,961,384
End of year 2,926,042
Net unrealized appreciation of investments 964,658
Net gain on investments 2,552,605
Net increase in net assets resulting from operations $ 2,941,694
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
For the Period of January 1, 1996 to June 30, 1996 and
the Year Ended December 31, 1995
<TABLE>
<CAPTION>
January 1, January 1,
1996 to 1995 to
June 30, December 31,
1996 1995
</CAPTION>
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 389,089 $ 628,560
Net realized gain from investment transactions 1,587,947 2,778,392
Net unrealized appreciation of investments 964,658 2,363,742
Net increase in net assets resulting from operations 2,941,694 5,770,694
DISTRIBUTIONS TO SHAREHOLDERS FROM:*
Net investment income (397,201) (622,972)
Net realized gain from investment transactions (1,512,894) (2,350,926)
Total distributions to shareholders (1,910,095) (2,973,898)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 812,923 and 701,498 shares sold 8,467,334 6,981,171
Net asset value of 115,106 and 166,398 shares issued for
reinvestment of distributions 1,190,193 1,663,855
9,657,527 8,645,026
Cost of 469,494 and 334,038 shares redeemed (4,955,644) (3,273,596)
Net increase from capital share transactions 4,701,883 5,371,430
Total increase in net assets 5,733,482 8,168,226
NET ASSETS:
Beginning of year 36,167,678 27,999,452
End of year (including undistributed net investment income [loss]
of $(1,206) and $6,906, respectively) $ 41,901,160 $ 36,167,678
*Distributions to shareholders:
Income dividends per share $ 0.10 $ 0.190
Capital gains distribution per share $ 0.40 $ 0.705
</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. Effective on April 24, 1996, the Fund's shareholders
approved a change in the fiscal year-end. A summary of significant
accounting policies that the Fund uses in the preparation of its
financial statements follows. The policies are in conformity with
generally accepted accounting principles.
Investments - Common stocks traded on a national securities
exchange are valued at the last reported sales price on the last
business day of the period or, if no sale was reported on that
date, at the average of the last reported bid and asked prices.
Investment transactions are recorded on the date securities are
purchased or sold. 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. Short-term investments are valued at cost
with interest income recorded on the accrual basis.
Federal Income Taxes - The Fund has complied with the Internal
Revenue Code requirements applicable to regulated investment
companies and will distribute all income to its shareholders.
Therefore, no Federal income tax provision is required.
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 period January 1, 1996 to June
30, 1996 (excluding repurchase agreements and short-term
securities), are as follows:
Other than
U.S. Government U.S. Government
Securities Securities
Purchases $ 5,721,767 $ -
Proceeds from sales 4,562,840 -
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
Per share income and capital changes for a share
outstanding throughout the period.
<TABLE>
<CAPTION>
January 1, 1996 Years Ended
to June 30, December 31,
1996* 1995 1994 1993 1992
</CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.11 $ 9.20 $ 9.49 $ 9.09 $ 8.30
Income from investment
operations:
Net investment income 0.10 0.19 0.18 0.12 0.12
Net gains or losses on
securities (both real-
ized and unrealized) 0.67 1.62 (0.12) 0.42 0.79
Total from investment operations 0.77 1.81 0.06 0.54 0.91
Less distributions:
Dividends from net
investment income (0.10) (0.19) (0.18) (0.14) (0.12)
Distributions from
capital gains (0.40) (0.71) (0.17) - -
Total distributions (0.50) (0.90) (0.35) (0.14) (0.12)
Net asset value, end of period $ 10.38 $ 10.11 $ 9.20 $ 9.49 $ 9.09
Total return 15% 20% 1% 6% 11%
Ratios/Supplemental Data
Net assets, end of period (in millions) $ 42 $ 36 $ 28 $ 25 $ 8
Ratio of expenses to average net assets 0.86% 0.89% 0.91% 0.92% 1.06%
Ratio of net investment income to average
net assets 1.94% 1.95% 1.95% 1.81% 1.91%
Portfolio turnover rate 29% 37% 27% 17% 7%
Average commission rate** $ .0477 - - - -
<FN>
<F1> *Ratios for this period of operation are annualized.
<F2>**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.
INDEPENDENT ACCOUNTANTS' REPORT
To the Shareholders and Board of Directors of
Scout Regional Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities of Scout Regional Fund, Inc., including the statement
of net assets, as of June 30, 1996, and the related statement of
operations, statements of changes in net assets and the financial
highlights for the periods indicated thereon. 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 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 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 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 Scout Regional Fund, Inc. as of June 30,
1996, the results of its operations, the changes in its net assets
and the financial highlights for the periods indicated thereon 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 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.
This page left blank intentionally.
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>
<ARTICLE> 6
<LEGEND>
Scout Regional Fund, Inc.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 39341898
<INVESTMENTS-AT-VALUE> 42267940
<RECEIVABLES> 530972
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 42798912
<PAYABLE-FOR-SECURITIES> 890374
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 7378
<TOTAL-LIABILITIES> 897752
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 38331934
<SHARES-COMMON-STOCK> 4035668
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (1206)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 644390
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2926042
<NET-ASSETS> 41901160
<DIVIDEND-INCOME> 327741
<INTEREST-INCOME> 233233
<OTHER-INCOME> 0
<EXPENSES-NET> 171885
<NET-INVESTMENT-INCOME> 389089
<REALIZED-GAINS-CURRENT> 1587947
<APPREC-INCREASE-CURRENT> 964658
<NET-CHANGE-FROM-OPS> 2941694
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 397201
<DISTRIBUTIONS-OF-GAINS> 1512894
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 812923
<NUMBER-OF-SHARES-REDEEMED> 469494
<SHARES-REINVESTED> 115106
<NET-CHANGE-IN-ASSETS> 5733482
<ACCUMULATED-NII-PRIOR> (1206)
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 166602
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 171885
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.11
<PER-SHARE-NII> .10
<PER-SHARE-GAIN-APPREC> .67
<PER-SHARE-DIVIDEND> .10
<PER-SHARE-DISTRIBUTIONS> .40
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.38
<EXPENSE-RATIO> .86
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
