SCOUT WORLDWIDE FUND
SEIMIANNUAL
JUNE 30, 1995
TO THE SHAREHOLDERS
During the quarter ended June 30, 1995, the net asset value of Scout WorldWide
Fund rose from $11.03 to $11.56, and the Fund paid out a dividend of $.13 and
a capital gains distribution of $.04. The Fund's total return (price change
and reinvested distributions) for the quarter was 6.34%. Over the same period
the unmanaged Standard & Poor's 500 index earned 9.53% and the international
markets as measured by the unmanaged Morgan Stanley Capital International
(MSCI) EAFE (Europe, Australia, Far East) index gained 0.72%.
The total return for the year to date through June 30, 1995 was 8.20%. In
comparison, Morgan Stanley Capital International EAFE index returned 2.60%.
Average annual compounded total return for the life of the Fund (inception
September 14, 1993) as of June 30, 1995 was 10.08%. 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.
With one exception, the markets we invest in were up during the second quarter.
While the Japanese market was depressed, Japanese stocks in the portfolio
held up fairly well. A large part of our better return relative to the EAFE
was Japan's much heavier weighting in that index.
During the quarter, we purchased shares of Ito Yokoda, a Japanese supermarket
and convenience store operator. The company also owns part of Seven-Eleven of
Japan, and the U.S. Other stocks new to the Fund were Nokia and Svenska
Cellulosa Aktiebo (SCA). Nokia, a Finnish company, is one of the worlds
leading producers of cellular phones. SCA is a Swedish paper company and
one of Europe's leading tissue and diaper producers.
The investment in SCA and Nokia increased our positions in Scandinavia, while
additions to Benetton and STET raised the portion in Italy. The sale of
Daimler Benz reduced our exposure to Germany.
We appreciate your continued interest in Scout WorldWide Fund as part of your
investment portfolio.
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.
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FINANCIAL STATEMENTS
Statement of Net Assets
June 30, 1995 (unaudited)
Market
Shares Company Value
COMMON STOCKS (ADR's) - 81.57%
AUSTRALIA - 4.87%
10,290 Broken Hill Proprietary Ltd. $ 508,069
19,000 Coles Myer Ltd. 482,125
990,194
BELGIUM - 0.68%
250 Solvay Cie S.A.* 138,364
CANADA - 6.78%
15,000 BCE Inc.* 481,875
33,300 Canadian Pacific Ltd.* 578,588
7,200 Magna International Cl. A* 317,700
1,378,163
DENMARK - 1.92%
6,200 Novo-Nordisk A.S. 166,625
8,000 Tele Danmark A.S. 224,000
390,625
FINLAND - 2.05%
7,000 Nokia CP ADS Pfd. 417,375
FRANCE - 10.32%
33,458 Alcatel Alsthom 606,426
6,638 Elf Aquitaine 247,265
2,800 Rhone-Poulenc Rorer Inc.* 114,450
9,400 Rhone-Poulenc S.A. 206,800
6,100 Schlumberger Ltd.* 378,962
18,035 Total S.A. 545,559
2,099,462
GERMANY - 4.83%
11,000 Bayer A.G. 273,386
14,600 Dresdener Bank A.G. 421,927
2,900 Siemens A.G. 287,670
982,983
HONG KONG - 1.01%
40,000 China Light & Power Ltd. 205,748
IRELAND - 2.75%
13,700 Elan Corp. PLC 558,275
ITALY - 4.95%
24,000 Benetton Group S.p.A. 474,000
3,200 Luxottica 118,800
15,000 STET Societa Finanziaria 414,630
1,007,430
JAPAN - 9.59%
4,700 Canon Inc. 384,225
6,000 Fuji Photo Film Ltd. 285,000
4,700 Hitachi Ltd. 471,175
1,400 Ito Yokado Ltd. 296,800
10,000 Pioneer Electronics Corp. 181,250
4,000 Sony Corp. 194,000
3,500 Toyota Motor Corp. 139,125
1,951,575
NETHERLANDS - 3.21%
2,700 Akzo N.V. 161,663
5,508 Koninklijke Ahold N.V. 195,534
5,000 Polygram N.V. 295,625
652,822
NEW ZEALAND - 0.89%
3,000 Telecom Corp. of New Zealand 181,875
NORWAY - 0.73%
3,555 Norsk Hydro A.S. 148,421
SWEDEN - 6.18%
8,600 Aktiebolaget Electrolux 393,450
32,000 Ericsson (L.M.) Telephone Co. Cl. B 640,000
12,000 Svenska Cellulosa Aktiebo* 222,478
1,255,928
SWITZERLAND - 5.20%
4,000 BBC Brown Boveri Ltd. 413,848
6,200 Ciba Geigy A.G. 227,095
8,000 Nestle S.A. 416,277
1,057,220
UNITED KINGDOM - 14.29%
10,000 Bass Public Ltd. Co. 188,750
2,800 British Gas PLC 128,800
18,822 Cadbury Schweppes PLC 559,954
4,200 Carlton Communications 128,625
8,793 Grand Metropolitan PLC 219,825
3,200 Reuters Holdings PLC 160,400
12,000 Smithkline Beecham PLC 543,000
10,000 Vodafone Group 378,750
63,000 Waste Management International 598,500
2,906,604
UNITED STATES-_ 1.32%
8,000 Sprint Corp.* 269,000
TOTAL COMMON STOCKS - 81.57% 16,592,064
REPURCHASE AGREEMENT - 16.76%
$3,410,000 Northern Trust Co.,
5.75%, due July 3, 1995
(Collateralized by U.S. Treasury Notes,
5.625%, due October 15, 1995) 3,410,000
TOTAL INVESTMENTS - 98.33% $ 20,002,064
Other assets less liabilities - 1.67% 340,414
TOTAL NET ASSETS - 100.00%
(equivalent to $11.56 per share;
10,000,000 shares of $1.00 par value
common stock authorized;
1,759,129 shares outstanding) $ 20,342,478
ADR - American Depository Receipt
*Non ADR
See accompanying Notes to Financial Statements.
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FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 1995 (unaudited)
ASSETS:
Investment securities, at market value
(identified cost $18,770,919) $ 20,002,064
Cash 92,630
Dividends receivable 86,999
Receivable for investments sold 160,785
Total assets 20,342,478
NET ASSETS $ 20,342,478
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 18,961,332
Accumulated undistributed income:
Undistributed net investment income 33,425
Accumulated net realized gain on
investment transactions 116,576
Net unrealized depreciation of investments 1,231,145
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 20,342,478
Capital shares, $1.00 par value
Authorized 10,000,000
Outstanding 1,759,129
NET ASSET VALUE PER SHARE $ 11.56
See accompanying Notes to Financial Statements.
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FINANCIAL STATEMENTS
Statement of Operations
Six Months Ended June 30, 1995 (unaudited)
INVESTMENT INCOME:
Income:
Dividends $ 253,477
Interest 83,289
336,766
Expenses:
Management fees (Note 3) 78,074
Governmental fees -
78,074
Net investment income 258,692
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (Note 1):
Realized gain from investment transactions
(excluding repurchase agreements and short-term
corporate notes):
Proceeds from sales of investments 986,612
Cost of investments sold 830,974
Net realized gain from investment transactions 155,638
Unrealized appreciation of investments:
Beginning of period 137,504
End of period 1,231,145
Net unrealized appreciation of investments
during the period 1,093,641
Net gain on investments 1,249,279
Net increase in net assets resulting from operations $ 1,507,971
See accompanying Notes to Financial Statements.
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FINANCIAL STATEMENTS
Statements of Changes in Net Assets
January 1 to Year Ended
June 30, 1995 December 31,
(unaudited) 1994
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 258,692 $ 234,615
Net realized gain from investment transactions 155,638 130,609
Net unrealized appreciation (depreciation) of
investments 1,093,641 (80,765)
Net increase in net assets resulting
from operations 1,507,971 284,459
DISTRIBUTIONS TO SHAREHOLDERS FROM:*
Net investment income (225,267) (234,615)
Net realized gain from investment transactions (69,313) (108,128)
Total distributions to shareholders (294,580) (342,743)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 291,306 and 1,117,059 shares sold 3,241,296 12,262,358
Net asset value of 15,757 and 21,348 shares
issued for reinvestment of distributions 182,943 228,632
3,424,239 12,490,990
Cost of 186,780 and 70,591 shares redeemed (2,054,997) (771,234)
Net increase from capital share transactions 1,369,242 11,719,756
Total increase in net assets 2,582,633 11,661,472
NET ASSETS:
Beginning of period 17,759,845 6,098,373
End of period (including undistributed net
investment income of $33,425 and $0,
respectively) $ 20,342,478 $ 17,759,845
*Distributions to shareholders:
Income dividends per share $ 0.13 $ 0.170
Capital gains distribution per share $ 0.04 $ 0.073
See accompanying Notes to Financial Statements.
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NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - The Fund was
capitalized on March 5, 1993 and initial public offering was made on September
14, 1993. The Fund is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. 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. 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's policy is to comply with the Internal
Revenue Code requirements applicable to regulated investment companies and to
distribute all income to its shareholders. Therefore, no Federal income tax
provision is required.
2. PURCHASES AND SALES OF SECURITIES - The aggregate amounts of security
transactions during the period ended June 30, 1995 (excluding repurchase
agreements and short-term corporate notes), were as follows:
Purchases $ 3,003,463
Proceeds from sales 986,612
3. MANAGEMENT FEES - Management fees, which include all normal expenses of
the Fund other than taxes, fees and other charges of governmental agencies
for qualifying the Fund's shares for sale, special legal fees, interest and
brokerage commissions, 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 .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.
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.
This report has been prepared for the information of the Shareholders of
Scout WorldWide 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.
<PAGE>
THE SCOUT FUNDS
Scout Stock Fund
A no-load mutual fund with primary emphasis
on long-term growth of both capital and income.
Scout Regional Fund
Seeks long-term growth of both capital and income by investing in smaller
regional companies.
Scout Bond Fund
Emphasis on maximum current income consistent with quality and maturity
standards.
Scout Money Market Fund
Primary emphasis on maximum income consistent with safety of principal and
maintenance of liquidity.
Scout Tax-Free Money Market Fund
Seeks to provide maximum income exempt
from federal income tax consistent with safety
of principal and maintenance of liquidity.
Scout WorldWide Fund
A diversified portfolio of stocks of established companies whose primary
business is carried on outside the United States.
For a free prospectus kit, which contains more complete information,
including all charges and expenses, write or call Jones & Babson at
1-800-996-2862. Please read the prospectus carefully before you invest or
send money. Money market funds are neither insured nor guaranteed by the
U.S. Government and there is no assurance that the funds will maintain a
stable net asset value.
