TO THE SHAREHOLDERS
During the quarter ended September 30, 1995, the net asset value of Scout
WorldWide Fund rose from $11.56 to $12.03, a total return (price change and
reinvested distributions) of 4.07%. Over the same period the unmanaged
Standard & Poor's 500 index earned 7.95% and the international markets as
measured by the unmanaged Morgan Stanley Capital International (MSCI) EAFE
(Europe, Australia, Far East) index gained 3.87%.
The total return for the nine months ended September 30, 1995 was 12.61%. In
comparison, the Morgan Stanley Capital International EAFE
index returned 6.57%. Average annual compounded total returns for one year
and the life of the Fund (inception September 14, 1993) as of September 30,
1995 were 11.63% and 10.92%, 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.
The big news in international investing in the third quarter was the strength
of the U.S. dollar. Germany and Japan's export-oriented companies were hurt
by the increased strength of the U.S. dollar and therefore became less
competitive in world markets. Although Germany's economy continues to show
moderate growth, Japan's economy remains in a recession and their banking
system has become considerably stressed. In response to these pressures,
Japan cut short-term interest rates and increased its U.S. dollar position.
This action caused both Germany and Japan's export-oriented company stocks to
improve, and overall both markets rose. But, those gains were partially offset
by the weakness of Germany and Japan's own currencies. Scout WorldWide Fund
does not hedge its currency exposure. We feel that this investment philosophy
has served our shareholder's well in the past and should be adhered to in
this unsteady market environment.
Since our last report we have purchased shares of Carrefour Supermarche, a
French retailer. Most of their stores are in the "hyper-mart" format which is
very popular abroad but has never caught on in this country. Carrefour has
operations in other countries, like Spain, Portugal and Brazil. We also added
shares of Repsol, the Spanish oil company.
During the quarter we reduced our technology positions. A number of these
stocks have done very well and we thought it was prudent to take some profits.
Thank you for making Scout WorldWide Fund a part of your investment program.
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 (ADR's) _ 81.50%
AUSTRALIA _ 4.66%
10,290 Broken Hill Proprietary Ltd. $ 563,378
19,380 Coles Myer Ltd. 494,190
1,057,568
BELGIUM _ 0.59%
250 Solvay Cie S.A. 133,638
CANADA _ 5.98%
15,000 BCE Inc.* 500,625
33,300 Canadian Pacific Ltd.* 532,800
7,200 Magna International Inc. Cl. A* 324,900
1,358,325
DENMARK _ 2.66%
6,200 Novo-Nordisk A.S. 189,100
16,000 Tele Danmark A.S. 414,000
603,100
FINLAND _ 1.54%
5,000 Nokia, CP ADS Pfd. 348,750
FRANCE _ 11.44%
29,458 Alcatel Alsthom 500,786
390 Carrefour Supermarche* 229,545
6,638 Elf Aquitaine 223,203
2,800 Rhone-Poulenc Rorer Inc.* 127,400
28,400 Rhone-Poulenc S.A. 575,100
6,100 Schlumberger Ltd.* 398,025
18,035 Total S.A. 543,304
2,597,363
GERMANY _ 4.28%
11,000 Bayer A.G. 281,386
14,600 Dresdner Bank A.G. 396,564
2,900 Siemens A.G. 294,005
971,955
HONG KONG _ 0.91%
40,000 China Light & Power Ltd. 206,944
IRELAND _ 2.50%
13,700 Elan Corp. PLC 568,550
ITALY _ 4.95%
24,000 Benetton Group S.p.A. 504,000
3,200 Luxottica Group S.p.A. 156,400
15,000 STET Societa Finanziaria 463,125
1,123,525
JAPAN _ 9.13%
4,700 Canon Inc. 418,887
6,000 Fuji Photo Film Ltd. 297,750
4,700 Hitachi, Ltd. 517,587
1,400 Ito Yokado, Ltd. 306,600
10,000 Pioneer Electronics Corp. 186,250
4,000 Sony Corp. 212,000
3,500 Toyota Motor Corp. 133,438
2,072,512
NETHERLANDS _ 3.07%
2,700 Akzo N.V. 162,338
5,508 Koninklijke Ahold N.V. 207,927
5,000 Polygram N.V. 326,250
696,515
NEW ZEALAND _ 0.82%
3,000 Telecom Corp. of New Zealand 185,250
NORWAY _ 0.68%
3,555 Norsk Hydro A.S. 153,309
SPAIN _ 1.68%
12,000 Repsol S.A. 381,000
SWEDEN _ 5.85%
8,600 Aktiebolaget Electrolux 411,725
27,000 Ericsson (L.M.)
27,000rts. Telephone Co. Cl. B 689,580
12,500 Svenska Cellulosa Aktiebo 226,461
1,327,766
SWITZERLAND _ 4.97%
4,000 BBC Brown Boveri Ltd. 466,124
6,200 Ciba Geigy A.G. 249,824
8,000 Nestle S.A. 411,818
1,127,766
UNITED KINGDOM _ 14.56%
10,000 Bass Public Ltd. Co. 202,500
6,200 British Gas PLC 258,850
18,822 Cadbury Schweppes Ltd. PLC 578,777
4,200 Carlton Communications 138,600
8,793 Grand Metropolitan Ltd. PLC 246,204
3,200 Reuters Holdings PLC 169,200
12,000 SmithKline Beecham PLC 607,500
10,000 Vodafone Group 410,000
63,000 Waste Management International 693,000
3,304,631
UNITED STATES _ 1.23%
8,000 Sprint Corp.* 280,000
TOTAL COMMON STOCKS _ 81.50% 18,498,467
Face Market
Amount Description Value
SHORT-TERM CORPORATE NOTES _ 13.18%
$ 500,000 Abbott Laboratories,
5.68%, due October 5, 1995 499,527
500,000 AT&T Corp.,
5.69%, due October 11, 1995 499,052
500,000 Chevron Corp.,
5.72%, due October 26, 1995 497,855
500,000 Hershey Foods Corp.,
5.70%, due October 5, 1995 499,525
500,000 IBM Corp.,
5.73%, due October 19, 1995 498,408
500,000 Xerox Credit Corp.,
5.70%, due October 25, 1995 497,941
TOTAL SHORT-TERM
CORPORATE NOTES _ 13.18% 2,992,308
REPURCHASE AGREEMENT _ 6.12%
1,390,000 Northern Trust Co.,
6.00%, due October 2, 1995
(Collateralized by U.S.
Treasury Notes, 4.00%,
due January 31, 1996) 1,390,000
TOTAL INVESTMENTS _ 100.80% $ 22,880,775
Other assets less liabilities _ (0.80%) (182,268)
TOTAL NET ASSETS _ 100.00%
(equivalent to $12.03 per share;
10,000,000 shares of $1.00 par
value capital shares authorized;
1,886,641 shares outstanding) $ 22,698,507
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 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.
