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, 1998
TO THE SHAREHOLDERS
For the three months ended June 30, 1998, Scout Regional Fund investors
had a total return (price change and reinvested distributions) of -
3.81%. The Fund ended the period at $11.76 per share.
The decline was in line with the results for small capitalization stocks
in general. The Value Line Index and the Russell 2000 Index were -4.32%
and -4.59%, respectively, and the Lipper Small Company Fund Index ended
- -3.87%.
Small-cap stocks have not performed as well as their blue-chip
counterparts for more than four years. Enthusiasm for the small shares
resurfaced temporarily in August 1997, but faded again when the Asian
crisis caused liquidity fears to rise. Historically, small-cap stocks
trade at premiums to large stocks because their earnings grow faster.
However, as the table in this report shows, the reverse is true today.
The average price-to-earnings ratio of the $230-340 million market
capitalization companies is below its 1983 level. Small-cap stocks now
trade 22% below large caps. Only in 1990 did the small companies trade
at a greater differential (25-30% below large caps).
We believe the stocks of companies headquartered in the Fund's eight
states (Missouri, Kansas, Arkansas, Oklahoma, Iowa, Nebraska, Colorado
and Illinois) generally offer stronger fundamentals, but are undervalued
and underappreciated to a greater degree than those in other regions.
Historically, the stocks in your Fund have performed better than small-
cap indices after cash reserve levels are excluded.
For the six months ended June 30, 1998, shareholders received an
ordinary income dividend of $.08 per share and a long-term capital gain
of $.35 per share.
For corporate shareholders, 40.54% of ordinary income distributions
qualify for the corporate dividends received deduction.
We appreciate you as a valued shareholder of Scout Regional Fund and
encourage your questions and comments.
Sincerely,
/s/David B. Anderson
David B. Anderson
UMB Investment Advisors
CHART - HYPOTHETICAL GROWTH OF $10,000
as of June 30, 1998
SCOUT REGIONAL FUND vs Lipper Small Co. Index*
SOURCE: UMB Investment Advisors
*Unmanged index of stocks, bonds or mutual funds (there are no direct
investments or fees in these indices).
For illustrative purposes only; may not represent your returns.
CHART - LARGEST 3000 U.S. EQUITIES
Total MEDIAN VALUATION
Market Number Market Market Percent of
Cap. of Cap. Cap. Total Current June 1983**
Decile Companies Range (Bill) Mkt. Cap. P/E P/E
1 300 >$7.2B $8125 68.2% 22.5 12.9X
2 300 $3.3-7.2B $1450 12.2% 21.0 13.0
3 300 $1.9-3.3B $750 6.3% 20.1 13.3
4 300 $1.2-1.9B $475 4.0% 19.8 12.9
5 300 $940M-1.2B $325 2.7% 19.2 13.4
6 300 $700-940M $245 2.1% 19.4 13.9
7 300 $640-700M $190 1.6% 20.0 14.5
8 300 $430-540M $145 1.2% 18.0 15.0
9 300 $340-430M $115 1.0% 17.9 16.5
10 300 $230-340M $85 0.7% 16.5 17.0
TOTALS 3000 $11905 100.0%
**Small Cap Peak
B=Billion Top 100 Companies: 23.6x
M=Million Bottom 1500: 18.5x
The Leuthold Group Copyright 1998
CHART - COMPARATIVE RATES OF RETURN
as of June 30, 1998
2 1/2 4 1/2 6 1/2 Obj. Chg.
Years Years Years
Scout Regional Fund 14.96% 12.69% 11.36% 10.87%
Scout Regional Fund Equities 18.94% 15.74% 16.24% 15.07%
Lipper Small Co. Fund Index* 14.11% 14.27% 14.26% N.A.
Russell 2000* 17.51% 15.16% 16.23% N.A.
Scout Regional Fund's average annual compound returns for 1-, 5- and 10-
year periods ended June 30, 1998, are 14.42%, 12.73% and 8.59%,
respectively.
Performance data contained in this report are for past periods only.
Past performance is not indicative of future performance. Investment
return and share value will fluctuate, and redemption value may be more
or less than original cost.
The Fund's investment objective was changed August 16, 1991.
*Unmanaged index of stocks, bonds or mutual funds (there are no direct
investments or fees in these indices).
CHART - TOP 10 EQUITY HOLDINGS
Market Percent
Value (000's) of Total
Instituform Technologies, Inc., CL. A $ 1,177 2.43%
Kellwood Co. 1,073 2.22%
Harmon Industries, Inc. 1,069 2.21%
Williams Companies, Inc. 1,011 2.09%
MYR Group, Inc. 952 1.97%
NPC International, Inc. CL. B 919 1.90%
CPI Corp. 905 1.87%
BHA Group, Inc. 878 1.81%
Aliant Communications, Inc. 878 1.81%
Federal Signal Corp. 851 1.76%
Top 10 Equity Holdings Total: $ 9,713 20.07%
NOTE: All market values based on June 30, 1998, statement of assets.
CHART - FUND DIVERSIFICATION
Transportation & Service 1.0%
Consumer Cyclical 17.4%
Consumer Staples 16.0%
Energy 6.6%
Financial 1.5%
Capital Goods 14.5%
Technology 1.9%
Utilities 13.8%
Cash Equivalents 18.1%
Basic Materials 9.2%
As of June 30, 1998, statement of assets.
CHART - HISTORICAL PER SHARE RECORD
INCOME & CUMULATIVE**
NET SHORT-TERM LONG-TERM VALUE PER
ASSET GAINS GAINS SHARE PLUS
VALUE DISTRIBUTION DISTRIBUTION DISTRIBUTIONS
12/31/86 $ 10.00 $ 0.08 $ - $ 10.08
12/31/87 9.87 0.63 - 10.58
12/31/88 8.67 0.72 - 10.10
12/31/89 8.32 0.60 - 10.36
12/31/90 7.61 0.64 - 10.28
12/31/91 8.30 0.29 - 11.26
12/31/92 9.09 0.12 - 12.17
12/31/93 9.49 0.14 - 12.70
12/31/94 9.20 0.20 0.15 12.77
12/31/95 10.11 0.33 0.57 14.57
12/31/96 10.43 0.23 0.69 15.81
12/31/97 11.89 0.26 0.63 18.16
6/30/98* 11.76 0.08 0.35 18.46
*Six-month only. Distributions typically occur in June
and December.
**Does not assume any compounding of reinvested distributions.
The Fund's investment objective was changed August 16, 1991.
Table shows calendar year distributions and net asset
values; may differ from fiscal year annual reports.
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 ("FDIC").
These shares involve investment risks, including the possible loss of
the principal invested.
FINANCIAL STATEMENTS
Statement of Net Assets
June 30, 1998
Market
Shares Company Value
COMMON STOCKS - 81.89%
Basic Materials - 9.24%
25,000 ACX Technologies* $ 543,750
25,000 Cyprus Amax Minerals Co. 331,250
2,500 Deltic Timber Corp. 62,656
15,000 Falcon Products, Inc. 189,375
45,000 Huntco, Inc. Cl. A 534,375
40,020 Kinross Gold Corp.* 130,065
20,000 Laclede Steel Co.* 67,500
117,600 Laidlaw Environmental Svcs.* 426,300
60,000 Lawter International, Inc. 652,500
21,000 Mallinckrodt Group, Inc. 623,438
25,000 Republic Group, Inc. 525,000
15,000 Sigma-Aldrich Corp. 526,875
4,613,084
Capital Goods - 14.52%
25,000 Atchison Casting Co. 446,875
15,000 Baldor Electric 365,625
53,240 BHA Group, Inc. 878,460
35,000 Federal Signal Corp. 850,937
45,000 Harmon Industries, Inc 1,068,750
85,000 Instituform Technologies, Inc., Cl. A* 1,176,719
75,000 Isco, Inc. 600,000
50,000 Layne Christensen Co.* 618,750
68,333 MYR Group, Inc. 952,391
5,000 Paul Mueller Co. 193,750
10,000 Trion, Inc. 55,000
2,000 Valmont Industries, Inc. 39,938
7,247,195
Consumer Cyclical - 17.41%
70,000 B.I., Inc. 656,250
16,500 Bandag, Inc. 643,500
10,000 Belden, Inc. 306,250
10,000 Block (H & R), Inc. 421,250
15,000 Brown Group, Inc. 298,125
24,000 Caseys General Stores, Inc. 397,500
37,500 Clarcor, Inc. 787,500
6,000 Dillards, Inc. 248,625
12,000 Donnelley (R.R.) & Sons 549,000
37,925 Flexsteel Industries, Inc. 530,950
30,000 Kellwood Co. 1,072,500
30,000 Lawson Products 772,500
10,000 Lee Enterprises, Inc. 306,250
8,500 Maytag Corp. 419,687
35,000 O'Sullivan Industries Holdings, Inc.* 490,000
8,000 Pharmerica, Inc.* 96,500
18,000 Rival Co. 243,000
60,000 Stimsonite Corp.* 450,000
8,689,387
Consumer Staples - 16.00%
20,000 Alberto-Culver Co. Cl. A 507,500
40,000 Angelica Corp. 840,000
35,000 Beverly Enterprises, Inc. 483,438
21,000 Brunswick Corp. 519,750
38,000 CPI Corp. 904,875
30,000 I B P, Inc. 543,750
14,000 Medpartners, Inc.* 112,000
25,000 Midwest Grain Products, Inc.* 362,500
75,000 NPC International, Inc. Cl. B* 918,750
85,000 Sanfilippo (John B & Son), Inc.* 414,375
22,000 Sealright Co.* 283,250
35,000 Stuart Entertainment, Inc.* 41,563
85,000 TCBY Enterprises, Inc. 780,937
41,300 VICORP Restaurants, Inc.* 634,987
50,000 Winnebago Industries, Inc. 637,500
7,985,175
Energy - 6.59%
20,000 Helmerich & Payne, Inc. 445,000
10,000 Kerr-McGee Corp. 578,750
35,000 Maverick Tube Corp.* 406,875
15,000 Murphy Oil Corp. 760,313
72,000 Southwestern Energy Co. 661,500
5,000 St. Mary Land & Exploration Co. 120,625
10,000 Ultramar Diamond Sharmock Corp. 315,625
3,288,688
Financial - 1.48%
16,500 Brenton Banks 337,219
1,500 Commerce Bancshares, Inc. 73,219
700 Kansas City Life Insurance Co. 63,700
9,000 Old Republic International Corp. 263,812
737,950
Technology - 1.93%
7,000 DII Group, Inc.* 119,438
35,000 Exabyte Corp.* 292,031
40,000 Fansteel, Inc.* 350,000
8,000 Molex, Inc. 200,000
961,469
Transportation & Service - 0.95%
25,000 Werner Enterprises, Inc. 476,562
Utilities - 13.77%
32,000 Aliant Communications, Inc. 878,000
12,000 Ameren Corp. 477,000
8,000 Calenergy, Inc. 240,500
40,000 Empire District Electric Co. 835,000
17,430 Interstate Energy Corp. 566,475
10,000 Kansas City Power & Light Co. 290,000
30,000 Laclede Gas Co. 735,000
35,000 St. Joseph Light & Power Co. 651,875
16,000 Utilicorp United, Inc. 603,000
15,000 Western Resources, Inc. 582,187
29,970 Williams Companies, Inc. 1,011,488
6,870,525
TOTAL COMMON STOCK (Cost $33,263,040) - 81.89% 40,870,035
Short-Term Corporate Notes - 9.99%
$ 500,000 Aluminum Company of America,
5.52%, due August 3, 1998 497,393
500,000 Becton Dickenson,
5.62%, due July 15, 1998 498,829
500,000 Chevron USA Inc.,
5.50%, due August 14, 1998 496,563
500,000 General Mills Inc.,
5.53%, due July 2, 1998 499,846
500,000 Heinz Co.,
5.53%, due August 10, 1998 496,851
500,000 International Business Machines,
5.48%, due July 2, 1998 499,848
500,000 Lucent Technologies Inc.,
5.48%, due August 7, 1998 497,108
500,000 Proctor & Gamble Co.,
5.47%, due July 10, 1998 499,240
500,000 Progress Capital Co.,
5.51%, due July 1, 1998 499,924
500,000 Sara Lee Corp.,
5.75%, due July 7, 1998 499,441
TOTAL SHORT-TERM CORPORATE NOTES (Cost $4,985,043) - 9.99% 4,985,043
GOVERNMENT SPONSORED ENTERPRISES - 3.97%
500,000 Federal Home Loan Mortgage Corporation,
5.35%, due October 2, 1998 493,015
500,000 Federal Home Loan Mortgage Corporation,
5.40%, due October 6, 1998 492,650
1,000,000 Federal National Mortgage Association,
5.39%, due July 30, 1998 995,508
TOTAL GOVERNMENT SPONSORED ENTERPRISES
(Cost $1,981,173) - 3.97% 1,981,173
Face Market
Amount Description Value
REPURCHASE AGREEMENT (Cost $570,000) - 1.14%
$ 570,000 Northern Trust Co., 5.55%, due July 1, 1998
(Collateralized by U.S. Treasury Notes,
5.75%, due September 30, 1999) $ 570,000
TOTAL INVESTMENTS (Cost $40,799,256) - 96.99% 48,406,251
Other assets less liabilities - 3.01% 1,502,598
TOTAL NET ASSETS - 100.00%
(equivalent to $11.76 per share;
10,000,000 shares of $1.00 par value
value capital shares authorized;
4,245,301 shares outstanding) $ 49,908,849
For federal income tax purposes, the identified cost of investments owned at
June 30, 1998 was $40,799,256.
Net unrealized appreciation for federal income tax purposes was $7,606,995,
which is comprised of unrealized appreciation of $11,183,284 and unrealized
depreciation of $3,576,289.
*Non-income producing security
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 1998
ASSETS:
Investment securities, at market value
(identified cost $40,799,256) $ 48,406,251
Cash 1,085
Dividends receivable 71,513
Receivable for investments sold 1,430,000
Total assets 49,908,849
NET ASSETS $ 49,908,849
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 40,407,682
Accumulated undistributed income:
Net investment income 89,565
Net realized gain on investment transactions 1,804,607
Net unrealized appreciation on investments 7,606,995
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 49,908,849
Capital shares, $1.00 par value
Authorized 10,000,000
Outstanding 4,245,301
NET ASSET VALUE PER SHARE $ 11.76
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Operations
Year Ended June 30, 1998
INVESTMENT INCOME:
Income:
Dividends $ 809,790
Interest 454,700
1,264,490
Expenses:
Management fees 426,268
Government fees 25,055
451,323
Net investment income 813,167
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain from investment transactions 4,721,775
Increase in net unrealized appreciation on investments 996,291
Net realized and unrealized gain on investments 5,718,066
Net increase in net assets resulting from operations $ 6,531,233
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
For the Years Ended June 30, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
</CAPTION>
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 813,167 $ 962,801
Net realized gain from investment transactions 4,721,775 2,069,833
Increase in net unrealized appreciation on investments 996,291 3,684,662
Net increase in net assets resulting from operations 6,531,233 6,717,296
DISTRIBUTIONS TO SHAREHOLDERS FROM:*
Net investment income (890,559) (794,637)
Net realized gain from investment transactions (3,299,092) (2,332,298)
Decrease in net assets from distributions (4,189,651) (3,126,935)
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 1,338,087 and 1,395,135 shares sold 16,176,319 14,709,173
Net asset value of 222,022 and 176,123 shares issued for
reinvestment of distributions 2,577,097 1,875,551
18,753,416 16,584,724
Cost of 1,644,021 and 1,278,012 shares redeemed (19,703,169) (13,559,225)
Net increase (decrease) in net assets from
capital share transactions (949,753) 3,025,499
Net increase in net assets 1,391,829 6,615,860
NET ASSETS:
Beginning of year 48,517,020 41,901,160
End of year (including undistributed net investment income
of $89,565 and $166,958, respectively) $ 49,908,849 $ 48,517,020
*Distributions to shareholders:
Income dividends per share $ 0.22 $ 0.18
Capital gains distribution per share $ 0.81 $ 0.53
</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 - Securities 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. 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.
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 June 30, 1998 (excluding
repurchase agreements and short-term securities), were as follows:
Other than
U.S. Government U.S. Government
Securities Securities
Purchases $ 7,004,825 $ 4,927,682
Proceeds from sales 12,955,291 3,000,000
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 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.
5. SUBSEQUENT EVENT - Subsequent to the Fund's year-end, the Fund name
will change to UMB Scout Regional Fund, Inc.
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share
outstanding throughout the period.
<TABLE>
<CAPTION>
Years Ended January 1, 1996 Years Ended
June 30, to December 31,
1998 1997 June 30, 1996* 1995 1994
</CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.21 $ 10.38 $ 10.11 $ 9.20 $ 9.49
Income from investment operations:
Net investment income 0.20 0.22 0.10 0.19 0.18
Net realized and unrealized gains
or (losses) on securities 1.38 1.32 0.67 1.62 (0.12)
Total from investment operations 1.58 1.54 0.77 1.81 0.06
Distributions from:
Net investment income (0.22) (0.18) (0.10) (0.19) (0.18)
Net realized gain on investment transactions (0.81) (0.53) (0.40) (0.71) (0.17)
Total distributions (1.03) (0.71) (0.50) (0.90) (0.35)
Net asset value, end of period $ 11.76 $ 11.21 $ 10.38 $ 10.11 $ 9.20
Total return 14% 15% 15% 20% 1%
Ratios/Supplemental Data
Net assets, end of period (in millions) $ 50 $ 49 $ 42 $ 36 $ 28
Ratio of expenses to average net assets 0.85% 0.87% 0.86% 0.89% 0.91%
Ratio of net investment income to average net assets 1.54% 2.09% 1.94% 1.95% 1.95%
Portfolio turnover rate 13% 20% 29% 37% 27%
Average commission rate** $ .0469 $ .0496 $ .0477 - -
</TABLE>
*Ratios for this period of operation are annualized.
**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.
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, 1998, 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, 1998, 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 manage-ment, 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, 1998, 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 24, 1998
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.
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
Martin A. Cramer, Vice President & Secretary
Constance E. Martin, 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
Custodian
UMB Bank, n.a., Kansas City, Missouri
SCOUT FUNDS
P.O. Box 410498
Kansas City, MO 64141-0498
TOLL-FREE (800) 996-2862
www.umb.com
Underwriter & Distributor: Jones & Babson, Inc., Kansas City, Missouri
JB23B 8/98
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<PER-SHARE-NAV-BEGIN> 11.21
<PER-SHARE-NII> .20
<PER-SHARE-GAIN-APPREC> 1.38
<PER-SHARE-DIVIDEND> .22
<PER-SHARE-DISTRIBUTIONS> .81
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.76
<EXPENSE-RATIO> .85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
