BABSON-
Stewart Ivory
International
FUND
Annual Report
June 30, 1998
BABSON FUNDS
JONES & BABSON DISTRIBUTORS
A member of the Generali Group
Message
To Our Shareholders
At June 30, 1998, the net asset value of Babson-Stewart Ivory
International Fund was $19.65, representing a total return (price change
and reinvested distributions) of -1.60% for the quarter, and 6.48% for
the fiscal year. Comparisons against the unmanaged Morgan Stanley
Capital International (MSCI) EAFE and other indices are as follows:
Investment Results - Total Return
Periods Ended 6/30/98
Second Quarter Previous Twelve
1998 Months
BSIIF -1.60% 6.48%
MSCI EAFE* Index** 1.13% 6.38%
MSCI World Index** 2.12% 17.47%
S&P 500 Index** 3.30% 30.15%
Lipper International Funds
(avg. funds 570 and
544, respectively) 0.72% 8.19%
*Europe, Australia, Far East
**unmanaged
While the portfolio's overall performance was about even with the
benchmark index for the fiscal year, the lastest quarter's performance
was slightly below that index, which was led by strength in continental
Europe. Our record was hurt by poor market results in Japan, Asia and in
the emerging markets (the latter not represented in the index). The
portfolio's performance was better than local indices in the UK and in
Asia ex-Japan but did not keep pace with market rises in continental
Europe.
New holdings were established in the following securities over the six
month period: Companhia Energetica de Minas (electric utility) in
Brazil, Pliva (pharmaceuticals) in Croatia, TeleDanmark (telecoms) in
Denmark, AXA-UAP (insurance, financial services), Danone (food
products), St. Gobain (building materials) in France, Irish Life
(insurance) in Ireland, Banca di Roma (banking), Telecom Italia
(telecoms) in Italy, Ito-Yokado (supermarket chain), Matsushita
Communication (industrial electronics), Olympus Optical (precision
instruments, cameras), Terumo (medical equipment) in Japan, Grupo Modelo
(brewing) in Mexico, VNU (publishing) in the Netherlands, Bank Handlowy
(banking) in Poland, Banco Santander (banking) and Mapfre Vida Seguro
(insurance) in Spain, Nestle (food products) in Switzerland, Thai
Farmers Bank (banking) in Thailand, Glaxo Wellcome (pharmaceuticals) and
Reckitt & Colman (household goods) in the UK.
Portfolio eliminations included: Guilbert and SEB (France), Johnson
Electric, South China Morning Post and Swire Pacific (Hong Kong), Bank
of Tokyo-Mitsubishi, Hirose, Hoya, Keyence, Kurita Water, Nichiei, Omron
and Sumitomo Electric Industries (Japan), Samsung (Korea), Haw Par
Brothers (Singapore), Ciba Specialty Chemicals and Roche (Switzerland),
Alumasc, Argos, British Sky Broadcasting, Marks & Spencer and Reed
International (UK).
While the principal western economics have continued to enjoy stable
growth and low inflation, the same cannot be said for most of Asia. The
economic downturn in Japan and in Asia generally, following the currency
and fiscal crisis of 1997, has caused forecasts for corporate profits
and economic growth to be downgraded, and renewed turmoil in Asian
markets has resulted in volatile performance in many areas.
The U.S. economy has maintained a high rate of growth, with virtually
non-existent inflation. There are some signs that this positive scenario
may be coming to an end, with export growth faltering due to the Asian
slowdown and falling productivity growth. However, the service economy
remains strong and we could see the first budget surplus for 30 years,
so the overall economy appears to be well balanced. Despite valuation
concerns following recent market strength, the climate for equity
investment remains benign.
The economic environment in Europe is also favorable for equities, with
strong growth in the principal economies as they continue to climb out
of recession, boosted by the impact of monetary union on peripheral
regions. Valuations are high but should be sustainable as profit growth
continues, and Europe remains a preferred area for investment, given the
uncertainty in Asia. Inflation appears to be more of a threat in the UK,
where the manufacturing economy is in recession due to the strength of
sterling. Overall corporate earnings growth should remain at a
reasonable level, however, and with UK equities offering value in an
international context and benefiting from recovery elsewhere in Europe,
we are likely to maintain an above-index portfolio weighting.
Prospects for the Japanese currency and stock market remain uncertain.
U.S. support for the yen, with the first concerted intervention since
1995, has provided temporary relief. However, the Japanese authorities
seem incapable of formulating a credible economic policy to revive
domestic demand, while piecemeal measures to help insolvent banks have
further reduced confidence in the currency. Institutional and private
investors retain large cash holdings, but companies continue to unwind
their cross holdings, putting further pressure on the Japanese market.
Elsewhere in Asia, the Japanese recession has undermined regional trade.
Despite an improved competitive position resulting from lower exchange
rates, companies are finding it difficult to secure necessary credit to
fund increased production. Competitive devaluation could well continue
as the "pegging" of the Hong Kong currency to the U.S. dollar and the
present valuation of the Chinese currency remain under threat.
Concerns over the financial crisis in Asia are beginning to impact the
availability of financing elsewhere and investment outside the principal
developed markets will be confined to specific high quality situations.
Our bias toward major Western developed markets is likely to continue,
as these economies are stable and prospects for earnings growth are
favorable. Elsewhere the economic and structural problems in Japan are
deep-seated and politicians appear unwilling to tackle them effectively,
while other Asian markets suffer from declining regional trade, lack of
credit and depressed asset prices.
Thank you for your continuing interest in Babson-Stewart Ivory
International Fund.
Sincerely,
/s/Larry D. Armel
Larry D. Armel
President
Babson-Stewart Ivory International Fund versus Morgan Stanley Capital
International EAFE Index
CHART
Babson-Stewart Ivory International Fund's average annual compounded
total returns for one, five, and ten year periods as of June 30, 1998,
were 6.48%, 11.67% and 10.56%, 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.
STATEMENT OF NET ASSETS
June 30, 1998
Shares Company and Description Market Value
COMMON STOCKS - 96.85%
AUSTRALIA - 1.96%
55,000 Brambles
(Transport, plant services) $ 1,081,936
47,500 Lend Lease
(Real estate) 962,705
2,044,641
BELGIUM - 1.88%
2,500 Colruyt
(Food retailer) 1,962,893
BRAZIL - 0.59%
19,580 Companhia Energetica de Minas
(Electric utility) 617,955
CHILE - 1.41%
70,000 Andina
(Coca-Cola franchisee) 1,093,750
42,000 Quinenco
(Holding company) 378,000
1,471,750
CROATIA - 0.49%
32,000 Pliva
(Pharmaceuticals) 512,000
DENMARK - 2.86%
9,100 Novo Nordisk
(Pharmaceuticals) 1,255,812
18,000 TeleDanmark
(Telecoms) 1,729,384
2,985,196
FRANCE - 7.37%
11,000 AXA-UAP
(Insurance, financial services) 1,237,243
2,750 Comptoirs Modernes
(Food retailer) 1,432,837
3,000 Danone
(Food products) 827,200
2,500 L'Oreal
(Cosmetics) 1,390,658
6,000 St. Gobain
(Building materials) 1,112,526
13,000 Total
(Oil major) 1,690,127
7,690,591
GERMANY - 11.16%
19,700 Bayerische Vereinsbank
(Banking) 1,671,297
6,500 Fresenius
(Pharmaceuticals, medical equipment) 1,232,638
1,680 Linde
(Engineering) 1,155,119
25,000 Mannesmann
(Telecoms and engineering) 2,571,460
3,000 SAP
(Computer software) 2,037,761
40,000 SKW Trostberg
(Chemicals) 1,441,681
23,000 Veba
(Utility) 1,547,617
11,657,573
HONG KONG - 2.99%
2,200,000 CDL Hotels
(Regional hotel group) 653,072
381,000 Dickson Concepts
(Retailing) 531,079
1,700,000 Gold Peak
340,000 wts. (Batteries) 588,462
820,000 Shaw Bros.
(T.V. network, film production and distribution) 497,419
(Electronic learning aids) 856,415
3,126,447
HUNGARY - 1.02%
13,500 Gedeon Richter
(Pharmaceuticals) 1,066,500
IRELAND - 1.91%
70,000 Irish Life
(Insurance) 645,322
100,000 Kerry Group
(Food manufacturer) 1,352,457
1,997,779
ITALY - 5.58%
350,000 Banca di Roma
(Banking) 728,859
250,000 Credito Italiano
(Financial services) 1,309,273
114,000 Luxottica
(Eyeglass frames) 1,767,000
300,000 Telecom Italia
(Telecoms) 2,022,372
5,827,504
JAPAN - 11.68%
29,000 Bridgestone
(Tires) 687,929
13,400 Circle K
(Conveniece stores) 468,084
17,000 Fuji Photo
(Film) 593,838
18,000 Ito-Yokado
(Supermarket chain) 850,076
300 Kurita Water
(Water treatment equipment) 3,558
32,000 Matsushita Communication
(Industrial electronics) 847,038
86,000 Mitsubishi Trust
(Trust bank) 733,304
111 Nippon Telegraph & Telephone
(Telecommunications) 923,194
88,000 Olympus Optical
(Precision instruments, cameras) 767,542
18,700 Promise
(Consumer lending) 772,235
69,000 Ricoh
(Office automation equipment) 729,074
2,000 Rohm
(Electronic components) 206,118
300 Santen Pharmaceutical
(Ophthalmic drugs) 3,296
11,000 Sony
(Consumer electronics) 950,676
124,000 Suzuki
(Cars, motorcycles) 1,129,963
32,000 Takeda
(Pharmaceuticals, chemicals) 853,981
40,000 Terumo
(Medical equipment) 636,436
14,000 TDK
(Electronic components) 1,037,825
12,194,167
KOREA - 0.02%
3,300 SK Telecom
(Cellular phone network) 18,356
MALAYSIA - 0.33%
400,000 Perlis Plantations
(Trading, mining, agriculture) 346,967
MEXICO - 0.85%
57,000 Grupo Modelo
(Brewing) 484,013
23,000 Kimberly Clark de Mexico
(Paper products) 403,650
887,663
NETHERLANDS - 8.09%
45,000 Ahold
(Supermarkets) 1,445,579
25,000 ING Group
(Financial services) 1,638,175
45,000 Numico
(Nutrition and health care products) 1,410,159
21,000 Philips
(Electronics) 1,766,572
30,000 VNU
(Publishing) 1,090,641
8,000 Wolters Kluwer
(Publisher) 1,098,807
8,449,933
PHILIPPINES - 0.25%
100,800 Benpres*
(Infrastructure-related holding company) 259,200
POLAND - 0.59%
32,000 Bank Handlowy
(Banking) 611,200
PORTUGAL - 1.01%
22,000 Jeronimo Martins
(Food distributors) 1,057,573
RUSSIA - 0.27%
8,300 LUKoil
(Oil) 278,880
SINGAPORE - 0.40%
17,000 wts. Haw Par Brothers
(Diversified manufacturing & services) 2,018
120,000 Robinson
(Department store) 306,231
274,000 Trans-Island Bus Services
(Bus transport) 107,323
415,572
SPAIN - 3.06%
20,000 Banco Popular
(Banking) 1,705,901
30,000 Banco Santander
(Banking) 767,851
15,000 Mapfre Vida Seguro
(Insurance) 716,009
3,189,761
SWEDEN - 3.40%
25,600 Hennes & Mauritz
(Retailing) 1,633,701
262,000 Nordbanken Holding
(Swedish/Finnish banking) 1,921,640
3,555,341
SWITZERLAND - 3.35%
400 Nestle
(Food products) 857,426
1,000 Novartis
(Pharmaceuticals and chemicals) 1,668,098
1,500 Phoenix Mecano
(Customized electric casings) 970,746
3,496,270
THAILAND - 0.30%
350,000 Thai Farmers Bank
(Banking) 308,945
UNITED KINGDOM - 24.03%
151,000 Bowthorpe
(Electronics components, instruments) 1,319,873
164,000 Cattles
(Consumer loans) 1,642,985
192,000 Electrocomponents
(Electronics) 1,506,737
72,000 Glaxo Wellcome
(Pharmaceuticals) 2,162,729
82,000 Granada
(Hotels, leisure) 1,508,808
96,000 Hays
(Business services) 1,610,927
UNITED KINGDOM (Continued)
129,000 Lloyds TSB
(Banking) 1,806,056
442,000 Morrison Supermarkets
(Supermarkets) 2,228,782
120,000 Northern Rock
(Mortgage bank) 1,061,929
75,205 Reckitt & Colman
(Household goods) 1,436,518
112,000 Scottish & Newcastle
(Brewing, hotels and leisure) 1,585,814
162,000 Shell
(Oil major) 1,141,474
148,774 SmithKline Beecham
(Pharmaceuticals) 1,817,104
97,000 Smiths Industries
(Instrumentation) 1,344,275
92,000 Spirax-Sarco Engineering
(Steam controls) 808,001
166,000 Vodafone
(Cellular telephone network) 2,107,879
25,089,891
TOTAL COMMON STOCKS - 96.85% 101,120,548
(Cost $77,062,584)
Short-Term Investments - 2.75% 2,870,904
(Cost $2,870,722)
TOTAL INVESTMENTS - 99.60% $ 103,991,452
(Cost $79,933,306)
Other assets less liabilities - 0.40% 412,943
TOTAL NET ASSETS - 100.00%
(equivalent to $19.65 per share;
10,000,000 shares of $1.00 par value
capital shares authorized;
5,313,916 shares outstanding) $ 104,404,395
For federal income tax purposes, the identified cost of investments owned at
June 30, 1998, was $80,605,167.
Net unrealized appreciation for federal income tax purposes was $23,386,285
which is comprised of unrealized appreciation of $30,147,870
and unrealized depreciation of $6,761,585.
*Securities on which no cash dividends were paid during the preceding year.
See accompanying Notes to Financial Statements.
STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1998
ASSETS:
Investments, at market value (identified cost $79,933,306) $ 103,991,452
Cash 1,564
Receivable for investments sold 1,462,769
Dividends receivable 165,828
Interest receivable 311
Foreign tax receivable 108,588
Total assets 105,730,512
LIABILITIES AND NET ASSETS:
Payable for investments purchased 1,213,121
Accrued expenses 92,772
Foreign tax withholding liability 20,224
Total liabilities 1,326,117
NET ASSETS $ 104,404,395
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 78,783,544
Accumulated undistributed income:
Undistributed net investment income 183,077
Accumulated net realized gain from investments and
foreign currency transactions 2,177,589
Accumulated distributions in excess of realized capital gains (799,334)
Net unrealized appreciation on investments and translation
of assets and liabilities in foreign currencies 24,059,519
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 104,404,395
Capital shares, $1.00 par value
Authorized 10,000,000
Outstanding 5,313,916
NET ASSET VALUE PER SHARE $ 19.65
See accompanying Notes to Financial Statements.
STATEMENT OF OPERATIONS
Year Ended June 30, 1998
INVESTMENT INCOME:
Income:
Dividends (net of foreign taxes withheld) $ 1,510,862
Interest 124,694
Foreign exchange loss (31,350)
1,604,206
Expenses:
Management fees (Note 3) 995,338
Custodian fees 220,205
1,215,543
Net investment income 388,663
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY (Note 1):
Net realized gain (loss) from:
Investment transactions 9,493,520
Foreign currency transactions (3,102,990)
Net increase (decrease) in unrealized appreciation on:
Investments (410,278)
Translation of assets and liabilities in foreign currencies 6,039
Net gain on investments and foreign currency 5,986,291
Increase in net assets resulting from operations $ 6,374,954
See accompanying Notes to Financial Statements.
STATEMENTS OF CHANGES
IN NET ASSETS
For The Two Years Ended June 30, 1998
<TABLE>
<CAPTION>
1998 1997
</CAPTION>
<S>
INCREASE IN NET ASSETS FROM OPERATIONS: <C> <C>
Net investment income $ 388,663 $ 425,516
Net realized gain from investments and foreign currency transactions 6,390,530 1,705,229
Net increase (decrease) in unrealized appreciation on investments and
translation of assets and liabilities in foreign currencies (404,239) 7,320,962
Net increase in net assets resulting from operations 6,374,954 9,451,707
DISTRIBUTIONS TO SHAREHOLDERS FROM:*
Net investment income (346,648) (284,454)
Net realized gain from investment transactions (5,120,557) (1,107,773)
Total distributions to shareholders (5,467,205) (1,392,227)
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 2,160,509 and 2,901,266 shares sold 41,329,883 52,703,314
Net asset value of 262,117 and 67,664 shares issued for
reinvestment of distributions 4,600,016 1,250,169
45,929,899 53,953,483
Cost of 2,772,555 and 1,753,176 shares redeemed (53,065,614) (31,634,433)
Net increase (decrease) from capital share transactions (7,135,715) 22,319,050
Total increase (decrease) in net assets (6,227,966) 30,378,530
NET ASSETS:
Beginning of year 110,632,361 80,253,831
End of year (including undistributed net investment income
of $183,077 in 1998 and $141,062 in 1997) $ 104,404,395 $ 110,632,361
*Distributions to shareholders:
Income dividends per share $ .065 $ .050
Capital gains distribution per share $ .957 $ .230
</TABLE>
See accompanying Notes to Financial Statements.
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
financial statements have been prepared in conformity with generally
accepted accounting principles which require management to make certain
estimates and assumptions at the date of the financial statements. The
following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements.
Investments - Common stocks are valued at the latest sales price or
mean between the bid and asked price on the last business day of the
period as reported by the principal securities exchange on which traded
or, if no sale was reported on that date, at the mean between the latest
reported bid and asked prices. Common stocks traded over-the-counter are
valued at the mean between the last reported bid and asked prices.
Investment transactions are recorded on the trade date. Dividend income
is recorded on the ex-dividend date and interest income is recorded on
the accrual basis net of unrecoverable foreign taxes withheld at the
applicable country rates. 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. Unrealized appreciation of certain foreign
investments has resulted in distributions of taxable income and are
reflected in accumulated distributions in excess of realized capital
gains.
The investments of the Fund are subject to the risk of restrictions
imposed by foreign governments and to political or economic
uncertainties.
Federal and State Taxes - The Fund's policy is 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.
Foreign Currency Translation - All assets and liabilities expressed in
foreign currencies are converted into U.S. dollars at the exchange rate
last quoted by a major bank in London on the last business day of the
period. The cost of portfolio securities is translated at the rates of
exchange prevailing when acquired. Income is translated at the rate of
exchange on the ex-dividend date. The resulting transaction exchange
gain or loss has been included in the results of operations with the
type of transaction giving rise to the gain or loss.
Reclassifications - Certain reclassifications have been made to the
prior year financial statements to conform with current presentation.
2. PURCHASES AND SALES OF SECURITIES:
The aggregate amounts of security transactions (exclusive of short-term
investments and currency transactions) during the year ended June 30,
1998, were as follows:
Purchases $ 50,645,064
Proceeds from sales 61,395,035
3. MANAGEMENT FEES:
Management fees, which include all normal expenses of the Fund other
than taxes, fees and other charges of governmental agencies (including
State and Federal registration fees), dues, interest, brokerage
commissions, fees for pricing services, custodian fees and any
extraordinary costs, are paid to Jones & Babson, Inc., an affiliated
company. These fees are based on average daily net assets of the Fund at
the annual rate of 95/100 of 1% (0.95%).
A partnership formed by David L. Babson & Co. Inc. and Stewart Ivory &
Company, Ltd. is the investment counsel of the Fund. The investment
counsel of the Fund is compensated by Jones & Babson, Inc. at an annual
rate of 475/1000 of 1% (0.475%) of the average daily total net assets of
the Fund. Certain officers and/or directors of the Fund are also
officers and/or directors of Jones & Babson, Inc., David L. Babson & Co.
Inc. and/or Stewart Ivory & Company, Ltd.
FINANCIAL HIGHLIGHTS
The following table sets forth information as to capital and income changes
or a share outstanding for each of the five years in the period ended
June 30, 1998:
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994
</CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $19.53 $18.04 $15.96 $16.41 $13.97
Income from investment operations:
Net investment income 0.08 0.07 0.07 0.16 0.05
Net gains on securities and foreign currency transactions
(both realized and unrealized) 1.07 1.70 2.85 0.23 3.01
Total from investment operations 1.15 1.77 2.92 0.39 3.06
Less distributions:
Dividends from net investment income (0.07) (0.05) (0.08) (0.17) (0.04)
Distributions from capital gains (0.96) (0.23) (0.65) (0.67) (0.58)
Distributions in excess of realized capital gains - - (0.11) - -
Total distributions (1.03) (0.28) (0.84) (0.84) (0.62)
Net asset value, end of year $19.65 $19.53 $18.04 $15.96 $16.41
Total return 6% 10% 19% 3% 22%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 104 $ 111 $ 80 $ 65 $ 47
Ratio of expenses to average net assets 1.16% 1.19% 1.26% 1.30% 1.32%
Ratio of net investment income to average net assets 0.37% 0.47% 0.44% 1.13% 0.34%
Portfolio turnover rate 48% 40% 33% 37% 60%
</TABLE>
See accompanying Notes to Financial Statements.
REPORT OF INDEPENDENT
PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors of
Babson-Stewart Ivory International Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of
Babson-Stewart Ivory International Fund, Inc. (a Maryland corporation),
including the statement of net assets as of June 30, 1998, and the
related statement of operations for the year then ended, the statements
of 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 securities owned as of June 30, 1998, by correspondence
with the custodian. 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 the Babson-Stewart Ivory International Fund, Inc.
as of June 30, 1998, 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.
ARTHUR ANDERSEN LLP
Kansas City, Missouri
July 28, 1998
This report has been prepared for the information of the Shareholders of
Babson-Stewart Ivory International 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.
EQUITIES
Growth Fund
Enterprise Fund*
Enterprise Fund II
Value Fund
Shadow Stock Fund
International Fund
FIXED INCOME
Bond Trust
Money Market Fund
Tax-Free Income Fund
* Closed to new investors.
BABSON FUNDS
JONES & BABSON DISTRIBUTORS
A member of the Generali Group
BMA Tower
700 Karnes Blvd.
Kansas City, MO 64108-3306
816-751-5900
1-800-4-BABSON
(1-800-422-2766)
http://www.jbfunds.com
JB3C-2 8/98
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000823338
<NAME> BABSON-STEWART IVORY INTERNATIONAL FUND INC
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 79933306
<INVESTMENTS-AT-VALUE> 103991452
<RECEIVABLES> 1737496
<ASSETS-OTHER> 1564
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 105730512
<PAYABLE-FOR-SECURITIES> 1213121
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 112996
<TOTAL-LIABILITIES> 1326117
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 78783544
<SHARES-COMMON-STOCK> 5313916
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 183077
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2177589
<OVERDISTRIBUTION-GAINS> (799334)
<ACCUM-APPREC-OR-DEPREC> 24059519
<NET-ASSETS> 104404395
<DIVIDEND-INCOME> 1510862
<INTEREST-INCOME> 124694
<OTHER-INCOME> (31350)
<EXPENSES-NET> 1215543
<NET-INVESTMENT-INCOME> 388663
<REALIZED-GAINS-CURRENT> 6390530
<APPREC-INCREASE-CURRENT> (404239)
<NET-CHANGE-FROM-OPS> 6374954
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 346648
<DISTRIBUTIONS-OF-GAINS> 5120557
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2160509
<NUMBER-OF-SHARES-REDEEMED> 2772555
<SHARES-REINVESTED> 262117
<NET-CHANGE-IN-ASSETS> (6227966)
<ACCUMULATED-NII-PRIOR> 141062
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 995338
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1215543
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 19.53
<PER-SHARE-NII> .08
<PER-SHARE-GAIN-APPREC> 1.07
<PER-SHARE-DIVIDEND> .07
<PER-SHARE-DISTRIBUTIONS> .96
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.65
<EXPENSE-RATIO> 1.16
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
