TO THE SHAREHOLDERS
During the quarter ended December 31, 1995, the net asset value of Scout
WorldWide Fund rose from $12.03 to $12.08, and a dividend of $.17 was paid.
The total return (price change and reinvested distributions) for the quarter
was 1.83%. Over the same period the unmanaged Standard & Poor's 500 index
earned 6.02% and the international markets as measured by
the unmanaged Morgan Stanley Capital International (MSCI) EAFE (Europe, A
ustralia, Far East) index gained 4.05%.
The Fund's total return for 1995 was 14.66%, and the EAFE index returned
11.21%. For our corporate shareholders, 69% of ordinary income distributions
qualify for the corporate dividends received deduction.
We hear a lot about the moderate growth in our domestic economy, but compared
to the economies of most developed countries we are doing very well. Japan
and most of western Europe have high unemployment and slow growth. Their
governments and central banks are slowly responding to this situation with
monetary easing. This ease has permitted our Federal Reserve Bank to lower
short-term interest rates in this country.
The third quarter saw a substantial rise in the U.S. dollar as the Japanese
started the stimulative monetary process. The fourth quarter saw little
additional strength, so currency movements were not a significant portion of
the Fund's return.
SAP, a German company, is a new stock in our portfolio. SAP is one of the
world's leading software companies, specializing in commercial applications
for the client/server market. This addition increased our position in both
the technology sector and Germany. In the third quarter we cut back our
technology exposure somewhat. In the quarter just ended we rebuilt our
technology position after some of the leading companies had their stocks
knocked down by the news of disappointing earnings.
We appreciate your interest and participation in Scout WorldWide Fund.
Sincerely,
Larry D. Armel
President
<PAGE>
Top 10 Equity Holdings
Market Percent
Value of Total
Canadian Pacific Ltd. $ 603,563 3.11%
Nokia, CP ADS Pfd. 583,125 3.01%
Elan Corp. PLC 568,912 2.94%
Benetton Group S.p.A. 555,000 2.86%
Canon Inc. 520,837 2.69%
BCE Inc. 517,500 2.67%
Alcatel Alsthom 515,515 2.66%
China Light & Power Ltd. 506,462 2.61%
Coles Myer Ltd. 501,457 2.59%
Rhone-Poulenc Rorer Inc. 500,175 2.58%
Top 10 Equity Holdings Total: 5,372,546 27.72%
NOTE: All market values based on 12/31/95 statement of assets.
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.
<PAGE>
FINANCIAL STATEMENTS
Statement of Net Assets
December 31, 1995
Market
Shares Company Cost Value
COMMON STOCKS (ADR's) _ 81.60%
AUSTRALIA _ 4.08%
8,290 Broken Hill Proprietary Co. Ltd. $ 388,155 $ 468,385
19,380 Coles Myer Ltd. 489,837 501,457
877,992 969,842
BELGIUM _ 0.57%
250 Solvay Cie S.A. 108,502 135,070
CANADA _ 6.03%
15,000 BCE Inc.** 491,819 517,500
33,300 Canadian Pacific Ltd.** 521,050 603,563
7,200 Magna International Cl. A** 316,297 311,400
1,329,166 1,432,463
DENMARK _ 2.75%
6,200 Novo-Nordisk A.S. 150,310 210,800
16,000 Tele Danmark A.S. 426,824 442,000
577,134 652,800
FINLAND _ 2.45%
15,000 Nokia, CP ADS Pfd. 562,409 583,125
FRANCE _ 10.09%
29,458 Alcatel Alsthom 541,511 515,515
390 Carrefour Supermarche* 217,734 236,933
6,638 Elf Aquitaine 234,312 243,946
23,400 Rhone-Poulenc Rorer Inc.** 570,514 500,175
6,100 Schlumberger Ltd. 338,214 422,425
14,035 Total S.A. 384,910 477,190
2,287,195 2,396,184
GERMANY _ 5.94%
11,000 Bayer A.G. 218,800 290,894
14,600 Dresdner Bank A.G. 351,725 390,686
2,640 SAP A.G.* ** 410,132 410,403
2,900 Siemens A.G. 253,675 318,107
1,234,332 1,410,090
HONG KONG _ 2.13%
110,000 China Light & Power Ltd. 527,000 506,462
IRELAND _ 2.40%
11,700 Elan Corp. PLC* 418,043 568,912
ITALY _ 4.88%
24,000 Benetton Group S.p.A. 594,404 555,000
3,200 Luxottica Group S.p.A. 74,016 187,200
15,000 STET Societa Finanziaria 451,250 418,125
1,119,670 1,160,325
JAPAN _ 10.28%
5,700 Canon Inc. 471,158 520,837
8,000 Fuji Photo Film Ltd. 380,942 465,000
4,700 Hitachi, Ltd. 445,492 472,350
1,400 Ito Yokado, Ltd. 288,400 344,575
8,000 Sony Corp. 429,260 491,000
3,500 Toyota Motor Corp. 152,688 147,875
2,167,940 2,441,637
NETHERLANDS _ 2.72%
2,700 Akzo N.V. 127,888 156,600
5,508 Koninklijke Ahold N.V. 133,379 226,517
5,000 Polygram N.V. 190,962 262,500
452,229 645,617
NEW ZEALAND _ 0.88%
3,000 Telecom Corp. of New Zealand 135,151 208,125
NORWAY _ 0.63%
3,555 Norsk Hydro A.S. 103,090 148,866
SPAIN _ 1.66%
12,000 Repsol S.A. 404,844 394,500
SWEDEN _ 4.12%
8,600 Aktiebolaget Electrolux 373,250 355,825
22,000 Ericsson (L.M.) Telephone Co. Cl. B 295,143 429,000
12,500 Svenska Cellulosa Aktiebo* 224,207 194,263
892,600 979,088
SWITZERLAND _ 4.98%
4,000 BBC Brown Boveri Ltd. 366,000 465,824
6,200 Ciba Geigy A.G. 172,825 273,454
8,000 Nestle S.A. 326,000 443,575
864,825 1,182,853
UNITED KINGDOM _ 13.67%
10,000 Bass Public Ltd. Co. 158,150 222,500
6,200 British Gas PLC 280,451 242,575
15,009 Cadbury Schweppes Ltd. PLC 425,791 499,049
14,200 Carlton Communications 392,147 431,325
8,910 Grand Metropolitan Ltd. PLC 238,048 256,163
3,200 Reuters Holdings PLC 111,250 176,400
9,000 SmithKline Beecham PLC 303,075 499,500
13,000 Vodafone Group 370,326 458,250
43,000 Waste Management International* 478,695 462,250
2,757,933 3,248,012
UNITED STATES _ 1.34%
8,000 Sprint Corp.** 265,560 319,000
TOTAL COMMON STOCKS (ADR's) _ 81.60% 17,085,615 19,382,971
SHORT-TERM CORPORATE NOTES _ 12.60%
$ 500,000 Abbott Laboratories, 5.80%,
due January 4, 1996 499,678 499,678
500,000 Chevron Corp., 5.63%,
due January 5, 1996 499,609 499,609
500,000 Duke Power Co., 5.72%,
due January 12, 1996 499,046 499,046
500,000 Gannett Co., Inc., 5.77%,
due January 17, 1996 498,638 498,638
500,000 Philip Morris Cos., Inc.,
5.63%, due January 26, 1996 497,967 497,967
500,000 Texaco, Inc., 5.83%,
due January 11, 1996 499,109 499,109
TOTAL SHORT-TERM CORPORATE NOTES _ 12.60% 2,994,047 2,994,047
REPURCHASE AGREEMENT _ 4.76%
1,130,000 Northern Trust Co.,
5.10%, due January 2, 1996
(Collateralized by $1,113,000 par
value U.S. Treasury Notes,
7.50%, due February 29, 1996) 1,130,000 1,130,000
TOTAL INVESTMENTS _ 98.96% $21,209,662 23,507,018
Other assets less liabilities _ 1.04% 246,170
TOTAL NET ASSETS _ 100.00%
(equivalent to $12.08 per share;
10,000,000 shares of $1.00 par value
capital shares authorized;
1,966,095 shares outstanding) $ 23,753,188
For federal income tax purposes, the identified cost of investments owned at
December 31, 1995 was $21,209,662.
Net unrealized appreciation for federal income tax purposes was $2,297,356,
which is comprised of unrealized appreciation of $2,608,494 and unrealized
depreciation of $311,138.
<PAGE>
Statement of Assets and Liabilities
December 31, 1995
ASSETS:
Investment securities, at market value
(identified cost $21,209,662) $ 23,507,018
Cash 213,565
Dividends receivable 32,285
Interest receivable 320
Total assets 23,753,188
NET ASSETS $ 23,753,188
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 21,426,600
Accumulated undistributed income:
Undistributed net investment income 9,467
Accumulated net realized gain on investment transactions 19,765
Net unrealized appreciation of investments 2,297,356
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 23,753,188
Capital shares, $1.00 par value
Authorized 10,000,000
Outstanding 1,966,095
NET ASSET VALUE PER SHARE $ 12.08
See accompanying Notes to Financial Statements.
<PAGE>
Statement of Operations
For the Year Ended December 31, 1995
INVESTMENT INCOME:
Income:
Dividends $ 370,775
Interest 206,068
576,843
Expenses:
Management fees (Note 3) 174,413
Governmental fees _
174,413
Net investment income 402,430
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 4,487,492
Cost of investments sold 4,265,250
Net realized gain from investment transactions 222,242
Unrealized appreciation of investments:
Beginning of year 137,504
End of year 2,297,356
Net unrealized appreciation of investments 2,159,852
Net gain on investments 2,382,094
Net increase in net assets resulting from operations $ 2,784,524
<PAGE>
Statements of Changes in Net Assets
For the Two Years Ended December 31, 1995
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 402,430 $ 234,615
Net realized gain from investment transactions 222,242 130,609
Net unrealized appreciation (depreciation) of
investments 2,159,852 (80,765)
Net increase in net assets resulting from
operations 2,784,524 284,459
DISTRIBUTIONS TO SHAREHOLDERS FROM:*
Net investment income (392,963) (234,615)
Net realized gain from investment transactions (232,728) (108,128)
Total distributions to shareholders (625,691) (342,743)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 550,555 and 1,117,059 shares sold 6,333,198 12,262,358
Net asset value of 32,639 and 21,348 shares
issued for reinvestment of distributions 386,875 228,632
6,720,073 12,490,990
Cost of 255,945 and 70,591 shares redeemed (2,885,563) (771,234)
Net increase from capital share transactions 3,834,510 11,719,756
Total increase in net assets 5,993,343 11,661,472
NET ASSETS:
Beginning of year 17,759,845 6,098,373
End of year $ 23,753,188 $ 17,759,845
Distributions to shareholders:
Income dividends per share $ 0.22 $ 0.170
Capital gains distribution per share $ 0.12 $ 0.073
<PAGE>
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 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.
2. PURCHASES AND SALES OF SECURITIES _ The aggregate amounts of security
transactions during the year ended December 31, 1995 (excluding repurchase
agreements and short-term corporate notes), are as follows:
Purchases $ 6,171,684
Proceeds from sales 4,487,492
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 com-missions, 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.
<PAGE>
Per share income and capital changes for a share
outstanding throughout the period.
<TABLE>
<CAPTION>
Years Ended
December 31, September 14, 1993 to
1995 1994 December 31, 1993*
</CAPTION>
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.84 $ 10.68 $ 10.13
Income from investment operations:
Net investment income 0.22 0.17 0.03
Net gains or losses on securities
(both realized and unrealized) 1.36 0.23 0.55
Total from investment operations 1.58 0.40 0.58
Less distributions:
Dividends from net investment income (0.22) (0.17) (0.03)
Distributions from capital gains (0.12) (0.07) _
Total distributions (0.34) (0.24) (0.03)
Net asset value, end of period $ 12.08 $ 10.84 $ 10.68
Total return 15% 4% 21%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 24 $ 18 $ 6
Ratio of expenses to average net assets 0.85% 0.85% 0.85%
Ratio of net investment income to average
net assets 1.97% 1.87% 1.43%
Portfolio turnover rate 27% 24% 2%
</TABLE>
The Fund was capitalized on March 5, 1993 with $100,000, representing 10,000
shares at a net asset value of $10.00 per share.
Initial public offering was made on September 14, 1993, at which time net
asset value was $10.13 per share.
Ratios for this initial period of operation are annualized.
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
To the Shareholders and Board of Directors
of Scout WorldWide Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of Scout
WorldWide Fund, Inc., including the statement of net assets, as of December
31, 1995, 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 December 31, 1995 by examination, 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 WorldWide Fund, Inc. as of December 31, 1995, the results of its o
perations, 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
January 23, 1996
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.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000897216
<NAME> SCOUT WORLDWIDE FUND INC
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 21209662
<INVESTMENTS-AT-VALUE> 23507018
<RECEIVABLES> 32605
<ASSETS-OTHER> 213565
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 23753188
<PAYABLE-FOR-SECURITIES> 0
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<OTHER-ITEMS-LIABILITIES> 0
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 21426600
<SHARES-COMMON-STOCK> 1966095
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 9467
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 19765
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2297356
<NET-ASSETS> 23753188
<DIVIDEND-INCOME> 370775
<INTEREST-INCOME> 206068
<OTHER-INCOME> 0
<EXPENSES-NET> 174413
<NET-INVESTMENT-INCOME> 402430
<REALIZED-GAINS-CURRENT> 222242
<APPREC-INCREASE-CURRENT> 2159852
<NET-CHANGE-FROM-OPS> 2784524
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 392963
<DISTRIBUTIONS-OF-GAINS> 232728
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 550555
<NUMBER-OF-SHARES-REDEEMED> 255945
<SHARES-REINVESTED> 32639
<NET-CHANGE-IN-ASSETS> 5993343
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 174413
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 174413
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.84
<PER-SHARE-NII> .22
<PER-SHARE-GAIN-APPREC> 1.36
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 1.58
<RETURNS-OF-CAPITAL> 15
<PER-SHARE-NAV-END> 12.08
<EXPENSE-RATIO> .85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
