SCOUT
WORLDWIDE
FUND
A no-load mutual fund
that seeks a favorable
total return by investing
in established companies
either in the U.S. or
whose principal business
is carried on outside
the country.
Quarterly Report
September 30, 1996
TO THE SHAREHOLDERS
September 14, 1996 marked the third anniversary of the Scout WorldWide Fund.
The compound annual return since inception (September 14, 1993) has been
11.47%. Over the same period, the Morgan Stanley Capital International EAFE
(Europe, Australia and Far East) index returned 8.09%.
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 Fund's total return (price change and reinvested dis-
tributions) for the quarter and one year ended September 30, 1996 was 1.94%
and 12.40%, respectively. Over the same period the unmanaged Standard & Poor's
500 Index earned 3.09% and 20.35%, respectively and the Morgan Stanley EAFE
earned 0.13% and 8.61%, respectively.
Along with our domestic market, the European markets have been strong, with
some like London and Frankfurt hitting new highs. Some of the drive behind
Germany's market has been the weakness of the German Mark which is expected to
make German exports more competitive thus helping their economy. From our
point of view this is a mixed blessing as the strength in the German market
has been offset somewhat by weakness in the Mark.
Top 10 Equity Holdings
Market Percent
Value of Total
Toyota Motor Corp. $ 892,500 2.64%
SONY Corp. 699,875 2.07%
Ito Yokado Ltd. 699,050 2.07%
Elan Corp Ltd. 687,125 2.04%
Telecom Corp. New Zealand 681,750 2.02%
Waste Management International 675,000 2.00%
LM Ericsson Telephone Company 659,750 1.95%
Canadian Pacific Ltd. 659,063 1.95%
Rhone Poulenc 655,200 1.94%
BCE Inc. 641,250 1.90%
Top 10 Equity Holdings Total: $ 6,950,563 20.58%
Note: All market values based on 9/30/96 statement of assets.
We have increased our exposure to the German market where some of the
companies have started to restructure and become more competitive, as the
United States companies did in the early 1990's. A new name in the portfolio
is Henkel, a German specialty chemical company which makes soaps, detergents
and shampoos. It also owns significant stakes in three U.S. companies, Clorox,
Loctite, and Ecolab.
PIE CHART
We have also established a position in Germany's neighbor, buying shares in
OMV, Austria's dominant oil company. In addition to refining and marketing
fuels in Austria, the company has set up a distribution and marketing system
in the eastern European neighbors which were part of the Austro-Hungarian
Empire, the Czech Republic, Slovakia, Hungary, Slovenia and Croatia. A
significant source of earnings for OMV is the natural gas business, where they
are the western terminus of a major gas pipeline from the former Soviet Union.
Sincerely,
/s/James L Moffet
James L. Moffett
UMB Investment Advisors
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 or any other applicable deposit
insurance. These shares involve investment risks, including the possible loss
of the principal amount invested.
FINANCIAL STATEMENTS
Statement of Net Assets
September 30, 1996
Market
Shares Company Value
COMMON STOCKS (ADR's) - 79.55%
Austria - 1.10%
3,700 OMV A.G.* 372,374
Australia - 3.70%
26,580 Broken Hill Propietary Co. Ltd. 684,435
19,380 Coles Myer Ltd. 566,865
1,251,300
Belgium - 0.45%
250 Solvay Cie S.A.* 150,525
Canada - 4.85%
10,000 BCE Inc.* 427,500
28,500 Canadian Pacific Ltd.* 659,063
7,200 Magna International Cl A* 347,400
20,000 Total Petroleum
North America LTD* 207,500
1,641,463
Denmark - 2.03%
7,800 Novo-Nordisk A.S. 308,100
16,000 Tele Danmark A.S. 378,000
686,100
Finland - 2.29%
17,500 Nokia, CP ADS Pfd. 774,375
France - 8.30%
29,458 Alcatel Alstholm 497,104
585 Carrefour Supermarche* 328,586
6,638 Elf Aquitaine 261,371
23,400 Rhone-Poulenc S.A. 655,200
6,100 Schlumberger Limited 515,450
14,035 Total S.A. 549,119
2,806,830
Germany - 8.04%
11,000 Bayer A.G. 403,864
10,000 Daimler Benz A.G. 552,500
24,700 Dresdner Bank A.G. 651,480
8,500 Henkel, Preferred* 370,034
2,640 SAP A.G.* 437,039
5,800 Siemens A.G. 305,958
2,720,875
Hong Kong - 1.24%
90,000 China Light & Power Ltd. 418,977
Ireland - 2.03%
23,000 Elan Corp PLC 687,125
Italy - 3.84%
24,000 Benetton Group S.p.A. 546,000
3,200 Luxottica Group S.p.A. 232,800
15,000 Stet Societa Finanziaria 519,375
1,298,175
Japan - 9.53%
5,700 Canon Inc. 561,450
16,000 Fuji Photo Film Ltd. 490,000
1,900 Hitachi Ltd. 183,113
3,100 Ito Yokado, Ltd. 699,050
11,000 Sony Corp. 699,875
11,500 Toyota Motor Corp. 589,375
3,222,863
Netherlands - 2.24%
2,700 Akzo N.V. 163,350
5,618 Koninklijke Ahold N.V. 316,715
5,000 Polygram N.V. 278,750
758,815
New Zealand - 1.12%
5,000 Telecom Corp., New Zealand 378,750
Norway - 0.49%
3,555 Norsk Hydro A.S. 167,085
Spain - 2.33%
12,000 Repsol S.A. 397,500
7,000 Telefonica De Espana S.A. 389,375
786,875
Sweden - 4.14%
8,600 Aktiebolaget Electrolux 482,675
26,000 Ericsson (L.M.) Telephone Co. 659,750
12,500 Svenska Cellulosa Aktiebo* 256,641
1,399,066
Switzerland - 4.15%
4,280 ABB A.G. 523,754
6,200 Ciba Geigy A.G. 396,666
8,650 Nestle S.A. 482,338
1,402,758
United Kingdom - 16.57%
10,000 Bass Public Ltd. Co. 243,750
18,300 British Gas PLC 578,737
7,000 British Telecommunications PLC 391,125
15,328 Cadbury Schweppes Ltd. 501,992
14,200 Carlton Communications PLC 544,925
18,097 Grand Metropolitan Ltd. PLC 554,221
3,200 Reuters Holdings PLC 221,600
60,610 Royal Bank of Scotland* 464,309
9,000 SmithKline Beecham PLC 547,875
5,000 UniLever PLC 435,000
13,000 Vodafone Group 443,625
75,000 Waste Management International 675,000
5,602,159
United States - 1.11%
2,666 360 Communications Co. 62,651
8,000 Sprint Corp.* 311,000
373,651
Total Common
Stocks (ADR's) - 79.55% 26,900,141
Face Market
Amount Description Value
GOVERNMENT SPONSORED
ENTERPRISES - 1.45%
$ 500,000 Federal National Mortgage Assoication,
5.41%, due January 17, 1997 491,810
Short-Term Corporate Notes - 13.28%
$ 500,000 AIG Funding Inc.,
5.30%, due October 10, 1996 499,264
500,000 Air Products & Chemicals,
5.35%, due October 9, 1996 499,331
500,000 Aluminum Co. of America,
5.35%, Due November 1, 1996 497,622
500,000 BellSouth Telecommunications Inc.,
5.30% due October 4, 1996 499,706
500,000 Gillette Co.,
5.26%, due October 3, 1996 499,781
500,000 IBM International Business Machines,
5.34%, due October 23, 1996 498,294
500,000 Motorola,
5.31%, due October 21, 1996 498,451
500,000 Southwestern Bell Telephone Co.,
5.26%, due October 25, 1996 498,174
500,000 Toys "R" Us,
5.38%, due October 23, 1996 498,281
TOTAL SHORT-TERM
CORPORATE NOTES - 13.28% 4,488,904
REPURCHASE AGREEMENT - 5.53%
1,870,000 Northern Trust Co.,
5.58%, due October 1, 1996
(Collateralized by U.S.
Treasury Notes, 6.125%,
due August 31, 1998) 1,870,000
TOTAL INVESTMENTS - 99.81% $ 33,750,855
Other assets less liabilities - 0.19% 63,303
TOTAL NET ASSETS - 100.00%
(equivalent to $13.15 per share;
10,000,000 shares of $1.00 par
value capital shares authorized;
2,571,660.025 shares outstanding) $ 33,814,158
ADR - American Depository Receipt
*Non ADR
BASIS OF DETERMINING MARKET VALUE. Each investment is valued at the
latest sales price on September 30 1996, 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.
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
Michael A. Brummel, Vice President
Martin A. Cramer, Vice President & Secretary
John G. Dyer, Vice President
Manager and Investment Counsel
UMB Bank, n.a., Kansas City, Missouri
Legal Counsel
Stradley, Ronon, Stevens & Young,
Philadelphia, Pennsylvania
John G. Dyer, Kansas City, Missouri
Custodian
UMB Bank, n.a., Kansas City, Missouri
JONES & BABSON
MUTUAL FUNDS
P.O. Box 410498
Kansas City, MO 64141-0498
TOLL-FREE 1-800-996-2862
