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.
Annual Report
June 30, 1997
TO THE SHAREHOLDERS
For the fiscal year ended June 30, 1997, Scout WorldWide Fund earned a total
return (price change and reinvested distributions) of 26.40%, in comparison
with the unmanaged Standard & Poor's 500 index which earned 34.70% and the
Morgan Stanley Capital International (MSCI) EAFE (Europe, Asia and Far East)
index which earned 13.14% for the same period.
The strong dollar hurt the Fund's performance for most of this year. That
strength had a mixed impact, however, as it helped some of the foreign
companies compete against U.S. firms. Those foreign stocks have risen more
than their countries' currencies have declined. The latest quarter has seen
the Japanese yen come back somewhat, and that has boosted stock prices there
as well.
An important part of the investment process is choosing attractive countries
or areas. A number of factors go into this decision, such as determining where
an economy or market is in the boom/bust cycle and analyzing the related long-
term trends. The Fund has avoided the emerging markets and most of the
developing markets because of these concerns, especially after the collapse of
the Mexican peso in 1994.
After substantial study, we have concluded several South American countries -
Argentina, Brazil and Chile - are suitable areas for investment. The biggest
change has been the control of inflation in Argentina and Brazil, and the
strides by those governments toward privatizing important sectors of their
economies. Chile underwent such a conversion several years ago and has shown
how successfully an economy can be when run this way. Nearly 5% of the Fund
now is invested in these countries.
The hot topic in international finance has been the elections earlier this
year in Great Britain and France. The outcomes appear to mark a significant
shift to the left, but both new governments are trying to present a pro-
business approach.
In Great Britain, new Prime Minister Tony Blair ran as the head of the "new"
Labour Party, just as President Bill Clinton ran as a "new" Democrat. This
"new" quality in both cases means they propose to improve on the success of
the Thatcher/Major and the Reagan/Bush eras, rather than replace a
conservative agenda with a liberal one. So far, the London stock market likes
the results. We would note that the British economy and stock market are most
like the U.S., in the sense their economy is doing well and observers wonder
when interest rates will be raised to slow it down.
France is a more difficult case. The economy is dragging and unemployment is
high as a result of tight monetary and fiscal policies that have been used to
try to meet the criteria for the new single European currency. To get support
for these policies, the French government called an early election and was
surprised when the electorate said it was unwilling to pay the price.
We will continue to closely monitor the economies and markets in these two
countries as their new governments begin to establish and implement policies.
Many of the companies we invest in are not household names in the U.S., so we
have included a brief description of stocks which are new to the Fund:
*Amcor Ltd. is an Australian packaging company with operations around the
world.
*Aracruz Celulose SA is a Brazilian company that makes pulp from
eucalyptus trees, which then is converted into paper products. Aracruz is
listed on the New York Stock Exchange.
*Sociedad Quimica Minera De Chile is a Chilean company that mines and
converts nitrate deposits into specialty fertilizers used primarily by flower
and vegetable growers. The firm also is the world's largest iodine producer.
The stock is listed on the NYSE under SocQuimica.
*Telecomunicacoes Brasileiras is a holding company for most of Brazil's
telecommunications companies. Brazil is privatizing this company, and the
private company is expected to grow rapidly as it catches up with demand. The
stock is listed on the NYSE under TelcmBrslrs and is referred to as Telebras.
*YPF Sociedad Anonima is an Argentine integrated petroleum company. It is
listed on the NYSE under YPF and its ticker symbol is the same. "Sociedad
Anonima" in its name on our report is the Spanish equivalent of "Incorporated"
and is sometimes abbreviated "SA."
For the six months ended June 30, shareholders received an ordinary income
dividend of $.12 per share; there were no capital gains distributed for this
period.
Investing in the equity and fixed income markets of countries other than the
United States involves certain risks including but not limited to economic
and/or political instability, currency fluctuations, and differences in
accounting standards.
For corporate shareholders, 46.74% of ordinary income distributions qualify
for the corporate dividends received deduction.
We appreciate your interest and participation in Scout WorldWide Fund, and we
welcome your questions and comments.
Sincerely,
/S/James L. Moffett
James L. Moffett
UMB Investment Advisors
GRAPH - Country Diversification For Equity Securities
Top 10 Equity Holdings
Market Percent
Value of Total
Luxottica Group $ 1,166,375 2.55%
Elan Corp. Ltd. 1,040,750 2.28%
Ericsson L M Telephone Co. 1,023,750 2.24%
Nokia Corp. 1,003,000 2.19%
Bass Public Ltd. Co. 985,000 2.16%
Nove-Nordisk A S 976,775 2.14%
Rhone Poulenc S A 974,025 2.13%
Polygram N V 968,625 2.12%
Sony Corp. A D R 968,000 2.12%
Reuters Holdings PLC 957,600 2.09%
Top 10 Equity Holdings Total: $ 10,063,900 22.02%
NOTE: All market values based on 6/30/97 statement of assets.
GRAPH - PIE CHART
Equity 85%
Cash & Equivalents 15%
GRAPH - PIE CHART - Sector Diversification
Transportation & Services 2%
Capital Goods 6%
Financial 3%
Utilities 9%
Basic Materials 9%
Energy 13%
Technology 13%
Consumer Cyclical 17%
Multi-Business 3%
Consumer Staples 25%
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.
GRAPH - Scout WorldWide Fund versus Morgan Stanley Capital International
(MSCI) EAFE Index
Scout WorldWide Fund's average annual compounded total returns for one year,
three years, and the life of the Fund (inception September 14, 1993) as of
June 30, 1997, were 26.40%, 17.58%, and 15.41%, 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.
FINANCIAL STATEMENTS
Statement of Net Assets
June 30, 1997
<TABLE>
<CAPTION>
Market
Shares Company Cost Value
</CAPTION>
<S> <C> <C>
COMMON STOCKS (ADR's) - 85.45%
ARGENTINA - 1.29%
20,000 YPF Sociedad Anonima $ 600,600 $ 615,000
AUSTRIA - 1.26%
4,700 OMV A.G.** 477,495 602,171
AUSTRALIA - 4.45%
20,000 Amcor Limited 525,000 525,000
26,580 Broken Hill Proprietary Co. Ltd. 649,030 790,755
19,380 Coles Myer Ltd. 489,837 809,115
1,663,867 2,124,870
BELGIUM - 0.31%
250 Solvay NPV** 108,502 147,427
BRAZIL - 2.31%
24,000 Aracruz Celulose SA 490,200 489,000
4,040 Telecomunicacoes Brasileiras 588,365 613,070
1,078,565 1,102,070
CANADA - 5.39%
20,000 BCE Inc.** 325,274 560,000
28,500 Canadian Pacific Ltd.** 438,316 810,469
15,000 Imperial Oil Ltd. 683,400 770,625
7,200 Magna International Cl. A** 316,297 433,350
1,763,287 2,574,444
CHILE - 1.11%
8,000 Sociedad Quimica Minera De Chile 490,560 529,000
DENMARK - 2.04%
17,800 Novo-Nordisk A.S. 669,975 976,775
FINLAND - 2.10%
13,600 Nokia, CP ADS, Pfd. 478,787 1,003,000
FRANCE - 8.34%
29,458 Alcatel Alsthom 541,511 743,815
1,090 Carrefour Supermarche, SA** 520,551 792,398
23,400 Rhone-Poulenc SA 570,514 974,025
6,100 Schlumberger Ltd. 338,215 762,500
14,035 Total SA 384,910 710,522
2,355,701 3,983,260
GERMANY - 8.91%
10,000 Daimler Benz A. G. 559,250 815,000
24,700 Dresdner Bank A.G. 628,212 854,736
8,500 Henkel KGAA, Pfd.** 346,232 479,014
8,000 Hoechst A.G. 377,325 339,500
4,140 SAP A.G.** 625,487 831,072
15,800 Siemens A.G. 714,925 938,913
3,251,431 4,258,235
IRELAND - 2.18%
23,000 Elan Corp. PLC 471,193 1,040,750
ITALY - 5.90%
24,000 Benetton Group S.p.A. 594,404 777,000
17,200 Luxottica Group S.p.A. 841,664 1,166,375
15,000 STET Societa Finanziaria 451,250 875,625
1,887,318 2,819,000
JAPAN - 8.73%
5,700 Canon, Inc. 471,158 778,050
20,000 Fuji Photo Film Ltd. 520,442 807,500
1,900 Hitachi, Ltd. 175,824 214,700
3,100 Ito Yokado, Ltd. 651,094 720,750
11,000 Sony Corp. 618,047 968,000
11,500 Toyota Motor Corp. 554,783 681,375
2,991,348 4,170,375
NETHERLANDS - 3.44%
2,700 Akzo N.V. 127,888 186,638
5,730 Koninklijke Ahold N.V. 138,668 487,408
18,000 Polygram N.V. 842,752 968,625
1,109,308 1,642,671
NORWAY - 0.40%
3,555 Norsk Hydro A.S. 103,090 192,637
SPAIN - 3.13%
21,000 Repsol S.A. 704,196 891,187
7,000 Telefonica De Espana S. A. 321,615 603,750
1,025,811 1,494,937
SWEDEN - 4.01%
8,600 Aktiebolaget Electrolux 373,250 624,575
26,000 Ericsson (L.M.) Telephone Co. Cl. B 375,143 1,023,750
12,500 Svenska Cellulosa Aktiebol** 224,207 265,926
972,600 1,914,251
SWITZERLAND - 3.67%
4,280 ABB A.G. 399,565 648,818
8,650 Nestle S.A. 362,400 571,386
6,613 Novartis A. G. 172,815 529,367
934,780 1,749,571
UNITED KINGDOM - 15.60%
40,000 Bass Public Ltd. Co. 894,599 985,000
22,969 Cadbury Schweppes Ltd. PLC 687,608 841,240
14,200 Carlton Communications PLC 392,147 610,600
18,495 Grand Metropolitan Ltd. PLC 504,562 724,773
15,200 Reuters Holdings PLC 863,250 957,600
60,610 Royal Bank of Scotland PLC** 497,727 566,904
9,00 SmithKline Beecham PLC 297,421 824,625
5,000 Unilever PLC 424,340 580,937
13,000 Vodafone Group 370,326 629,687
80,000 Waste Management International PLC* 701,789 730,000
5,633,769 7,451,366
UNITED STATES - 0.88%
8,000 Sprint Corp.** 218,543 421,000
TOTAL COMMON STOCKS (ADR's) - 85.45% 28,286,530 40,812,810
</TABLE>
<TABLE>
<CAPTION>
Market
Face Amount Description Cost Value
</CAPTION>
<S> <C> <C>
SHORT-TERM CORPORATE NOTES - 8.34%
$ 500,000 Abbott Laboratories, 5.46%,
due July 14, 1997 $ 498,938 $ 498,938
500,000 American Tel. & Telegraph, 5.47%,
due July 22, 1997 498,329 498,329
500,000 Campbell Soup Co., 5.48%,
due July 25, 1997 498,097 498,097
500,000 du Pont (E.I.) de Nemours & Co.,
5.47%, due July 29, 1997 497,797 497,797
500,000 Dun & Bradstreet Corp., 5.60%,
due July 23, 1997 498,211 498,211
500,000 Pacific Bell, 5.47%,
due July 18, 1997 498,633 498,633
500,000 Wisconsin Electric Power Co., 5.50%,
due July 25, 1997 498,090 498,090
500,000 Xerox Corp., 5.52%,
due July 25, 1997 498,083 498,083
TOTAL SHORT-TERM CORPORATE NOTES - 8.34% 3,986,178 3,986,178
GOVERNMENT SPONSORED ENTERPRISES - 1.04%
500,000 Federal National Mortgage Association,
5.50%, due September 5, 1997 494,882 494,882
REPURCHASE AGREEMENT - 0.85%
405,000 Northern Trust Co., 5.80%, due
July 1, 1997 (Collateralized by U.S.
Treasury Notes, 5.625% due January 31, 1998) 405,000 405,000
TOTAL INVESTMENTS - 95.68% $ 33,172,590 45,698,870
Other assets less liabilities -4.32% 2,062,219
TOTAL NET ASSETS - 100.00%
(equivalent to $16.00 per share;
10,000,000 shares of $1.00 par value
capital shares authorized;
2,984,637 shares outstanding) $ 47,761,089
</TABLE>
For federal income tax purposes, the identified cost of investments
owned at June 30, 1997 was $33,172,590.
Net unrealized appreciation for federal income tax purposes was $12,526,280,
which is comprised of unrealized appreciation of $12,606,207 and unrealized
depreciation of $79,927.
ADR - American Depository Receipt
*Non-income producing security
**Non ADR
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 1997
ASSETS:
Investment securities, at market value
(identified cost $33,172,590) $ 45,698,870
Cash 24,331
Dividends receivable 75,857
Receivable for investment sold 1,962,031
Total assets 47,761,089
NET ASSETS $ 47,761,089
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 34,452,936
Accumulated undistributed income:
Net investment income 157,825
Net realized gain on investment transactions 624,048
Net unrealized appreciation on investments
and translation of assets and liabilities in
foreign currencies 12,526,280
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 47,761,089
Capital shares, $1.00 par value
Authorized 10,000,000
Outstanding 2,984,637
NET ASSET VALUE PER SHARE $ 16.00
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statement of Operations
Year Ended June 30, 1997
INVESTMENT INCOME:
Income:
Dividends $ 643,146
Interest 483,826
1,126,972
Expenses:
Management fees 336,708
Government fees 11,772
348,480
Net investment income 778,492
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY:
Realized gain from investment and
foreign currency transactions:
Proceeds from sales of investments 6,966,888
Cost of investments sold 6,188,327
Net realized gain from investment
and foreign currency transactions 778,561
Unrealized appreciation of investments and
translation of assets and liabilities in
foreign currencies:
Beginning of year 4,021,776
End of year 12,526,280
Increase in net unrealized appreciation on
investments and translation of assets and
liabilities in foreign currencies 8,504,504
Net realized and unrealized gain on
investments and foreign currency 9,283,065
Net increase in net assets resulting
from operations $ 10,061,557
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
For the Year Ended June 30, 1997 and the Period of January 1, 1996 to
June 30, 1996
<TABLE>
<CAPTION>
July 1, 1996 January 1, 1996
to June 30, to June 30,
1997 1996
</CAPTION>
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 778,492 $ 336,121
Net realized gain from investment and
foreign currency transactions 778,561 105,839
Increase in net unrealized appreciation on
investments and translation of assets and
liabilities in foreign currencies 8,504,504 1,724,420
Net increase in net assets resulting
from operations 10,061,557 2,166,380
DISTRIBUTIONS TO SHAREHOLDERS FROM:*
Net investment income (644,654) (321,601)
Net realized gain from investment transactions (182,240) (97,877)
Decrease in net assets from distributions (826,894) (419,478)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 1,292,511 and 517,218 shares sold 17,963,717 6,520,012
Net asset value of 35,885 and 20,521 shares issued
for reinvestment of distributions 525,289 264,093
18,489,006 6,784,105
Cost of 714,440 and 133,153 shares redeemed (10,542,570) (1,704,205)
Net increase in net assets from capital
share transactions 7,946,436 5,079,900
Net increase in net assets 17,181,099 6,826,802
NET ASSETS:
Beginning of year 30,579,990 23,753,188
End of year (including undistributed net
investment income of $157,825 and $23,987,
respectively) $ 47,761,089 $ 30,579,990
*Distributions to shareholders:
Income dividends per share $ 0.21 $ 0.14
Capital gains distribution per share $ 0.07 $ 0.04
See accompanying Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - The Fund is
registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. Effective on April 24,
1996, the Fund's shareholders approved a change in the fiscal year-end. 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. Securities traded over-the-counter are valued at the average of
the last reported bid and asked prices. Short-term obligations are valued at
amortized cost, which approximates market value. Investment transactions are
recorded on the trade date. Interest income is recorded daily. 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.
Foreign Currency Transactions - The accounting records of the Fund are
maintained in U.S. dollars. All assets and liabilities initially expressed in
foreign currencies are converted into U.S. dollars at prevailing exchange
rates. Purchases and sales of investment securities, dividend and interest
income, and certain expenses are translated at the rates of exchange
prevailing on the respective dates of such transactions.
The Fund does not isolate that portion of the results of operations resulting
from changes in the foreign exchange rates on investments from the
fluctuations arising from changes in the market prices of securities held.
Such fluctuations are included with the net realized and unrealized gain or
loss on investments.
Net realized foreign currency exchange gains or losses arise from sales of
foreign currencies and the difference between asset and liability amounts
initially stated in foreign currencies and the U.S. dollar value of the
amounts actually received or paid. Net unrealized foreign currency exchange
gains or losses arise from change in the value of assets and liabilities,
other than portfolio securities at the end of the reporting period, resulting
from changes in the exchange rates.
Federal Income Taxes - The Fund's policy is to comply with the requirements
of the Internal Revenue Code that are applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
Amortization - Discounts and premiums on securities purchased are amortized
over the life of the respective securities.
Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the
reporting period. Actual results could differ from those estimates.
2. PURCHASES AND SALES OF SECURITIES - The aggregate amounts of security
transactions during the year ended June 30, 1997 (excluding repurchase
agreements and short-term securities), were as follows:
Other than
U.S. Government U.S. Government
Securities Securities
Purchases $ 13,871,352 $ -
Proceeds from sales 5,469,237 1,497,651
3. MANAGEMENT FEES - UMB Bank, n.a. is the Fund's manager and investment
adviser and provides or pays the cost of all management, supervisory and
administrative services required in the normal operation of the Fund. This
includes investment management; fees of the custodian, independent public
accountants and legal counsel; remuneration of officers and directors; rent;
and shareholder services, including maintenance of the shareholder accounting
system and transfer agency. Not considered normal operating expenses and
therefore payable by the Fund are taxes, interest, fees and the other charges
of governments and their agencies for qualifying the fund's shares for sale,
special accounting and legal fees and brokerage commissions. UMB Bank's
management 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., which serves as the Fund's underwriter and distributor.
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 the collateral is
sufficient to protect the Fund in the event of default by the seller.
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share
outstanding throughout the period.
<TABLE>
<CAPTION>
Year Ended Years Ended
June 30, January 1, 1996 to December 31, September 14, 1993 to
1997 June 30, 1996** 1995 1994 December 31, 1993*
</CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.90 $ 12.08 $ 10.84 $ 10.68 $ 10.13
Income from investment operations:
Net investment income 0.26 0.14 0.22 0.17 0.03
Net realized and unrealized gains
on securities 3.12 0.86 1.36 0.23 0.55
Total from investment operations 3.38 1.00 1.58 0.40 0.58
Distributions from:
Net investment income (0.21) (0.14) (0.22) (0.17) (0.03)
Net realized gain on
investment transactions (0.07) (0.04) (0.12) (0.07) -
Total distributions (0.28) (0.18) (0.34) (0.24) (0.03)
Net asset value, end of period $ 16.00 $ 12.90 $ 12.08 $ 10.84 $ 10.68
Total return 26% 17% 15% 4% 21%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 48 $ 31 $ 24 $ 18 $ 6
Ratio of expenses to average net assets 0.86% 0.85% 0.85% 0.85% 0.85%
Ratio of net investment income to average net assets 1.93 2.40% 1.97% 1.87% 1.43%
Portfolio turnover rate 18% 5% 27% 24% 2%
Average commission rate*** $ .0315 $ .0468 - - -
</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.
**Ratios for this period of operation are annualized.
***For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security trades
on which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
See accompanying Notes to Financial Statements.
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 June 30,
1997, 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 June 30, 1997, by confirmation, 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 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
Scout WorldWide Fund, Inc. as of June 30, 1997, the results of its operations,
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
July 22, 1997
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.
This page left blank intentionally.
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
Elizabeth L. Allwood, Vice President
Michael A. Brummel, Vice President
Martin A. Cramer, Vice President & Secretary
John G. Dyer, Vice President
Constance E. Martin, Vice President
Investment Counsel
UMB Bank, n.a., Kansas City, Missouri
Auditors
Baird, Kurtz & Dobson, 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
BOARD OF DIRECTORS
AND OFFICERS
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 33172590
<INVESTMENTS-AT-VALUE> 45698870
<RECEIVABLES> 2037888
<ASSETS-OTHER> 24331
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 47761089
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 34452936
<SHARES-COMMON-STOCK> 2984637
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 157825
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 624048
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12526280
<NET-ASSETS> 47761089
<DIVIDEND-INCOME> 643146
<INTEREST-INCOME> 483826
<OTHER-INCOME> 0
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