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
March 31, 1997
TO THE SHAREHOLDERS
For the quarter ended March 31, 1997, the net asset value of Scout WorldWide
Fund rose from $13.94 to $14.31, giving a total return (price change and
reinvested distributions) of 2.65%. Over the same period the unmanaged
Standard & Poor's 500 index earned 2.68% and the international markets as
measured by the unmanaged Morgan Stanley Capital International (MSCI) EAFE
(Europe, Asia and Far East) index lost -1.52%.
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 direction of interest rates is very important to investors all over the
world. One of the most important reasons is that interest rates can have a
stimulating or a slowing effect on a country's economy. While our interest
rates are rising in an effort to slow economic growth, interest rates in Japan
are falling, a continuation of the dramatic lowering of rates by the Bank of
Japan nearly two years ago. In response to the deep and prolonged recession in
Japan and crisis in their banking system, the Bank of Japan reduced rates with
the hope of stimulating the Japanese economy and helping Japanese banks
regain strength. Interest rates also effect stock levels relative to bonds.
The relativity of interest rates is one of the most important factors in
determining exchange rates between currency. One of the desired effects of a
lower currency value is to stimulate the economy by making the country's
exports more competitive, and this is just what has happened in Germany and
Japan. So far the strength in these economies has been focused on export
industries, and we have emphasized these companies in both countries. For
example, most of our Japanese holdings are in Sony, Canon, Fuji, and Toyota,
all of which are benefitting from increased price competitiveness due to the
weak yen.
Another important development in international investing has been the progress
towards a unified European currency, sometimes referred to as the "Euro."
Under a program laid out under the Treaty of Maastrecht, the major European
countries are trying to get their fiscal and monetary affairs in order so they
can merge their currencies into one currency - the "Euro". A major part of
this process has been to reduce government deficits and inflation with
restrictive fiscal policies, resulting in sluggish economies throughout
continental Europe. At the same time, many state-owned companies are being
privatized and many public companies are restructuring for greater efficiency,
changes which have caused considerable upheaval in the European workplace.
The intended slowdown in our domestic economy resulting from higher interest
rates may happen just as the economies in Europe and Japan begin to show signs
of strength. While this might also coincide with stronger interest rates
abroad and foreign currencies, we could see a period of outperformance of
foreign stocks relative to our domestic stocks. Changing interest rate
environments, increased competition in the area of exports, and progress
towards a unified European currency should present many profitable investment
scenarios in the next few years. Scout WorldWide Fund is well-positioned to
capitalize on these opportunities as they arise.
We appreciate your interest and participation in Scout WorldWide Fund.
Sincerely,
/s/James L. Moffett
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
March 31, 1997
Market
Shares Company Value
COMMON STOCKS (ADR's) - 77.36%
AUSTRIA - 1.26%
4,700 OMV A.G.* 558,968
AUSTRALIA - 3.21%
26,580 Broken Hill Proprietary Co. Ltd. 704,370
19,380 Coles Myer Ltd. 721,905
1,426,275
BELGIUM - 0.34%
250 Solvay NPV* 150,788
CANADA - 5.42%
10,000 BCE Inc.* 460,000
28,500 Canadian Pacific Ltd.* 684,000
15,000 Imperial Oil Ltd 699,375
7,200 Magna International Cl. A* 357,300
20,000 Total Petroleum
North America LTD * 210,000
2,410,675
DENMARK - 2.96%
17,800 Novo-Nordisk A.S. 898,900
16,000 Tele Danmark A.S. 418,000
1,316,900
FINLAND - 1.78%
13,600 Nokia, CP ADS, Pfd. 792,200
FRANCE - 8.38%
29,458 Alcatel Alsthom 699,627
1,090 Carrefour Supermarche, SA* 676,057
6,638 Elf Aquitaine 326,922
23,400 Rhone-Poulenc SA 778,050
6,100 Schlumberger Ltd. 654,225
14,035 Total SA 594,733
3,729,614
GERMANY - 10.00%
11,000 Bayer A.G. 457,566
10,000 Daimler Benz A. G. 772,500
24,700 Dresdner Bank A.G. 877,917
8,500 Henkel KGAA, Pfd.* 467,696
8,000 Hoechst A.G. 318,000
4,140 SAP A.G.* 704,726
15,800 Siemens A.G. 851,370
4,449,775
HONG KONG - 0.89%
90,000 China Light & Power Ltd. 396,045
IRELAND - 1.77%
23,000 Elan Corp. PLC 784,875
ITALY - 4.89%
24,000 Benetton Group S.p.A. 609,000
17,200 Luxottica Group S.p.A. 913,750
15,000 STET Societa Finanziaria 650,625
2,173,375
JAPAN - 7.18%
5,700 Canon Inc. 607,050
16,000 Fuji Photo Film Ltd. 524,000
1,900 Hitachi, Ltd. 166,962
3,100 Ito Yokado, Ltd. 552,575
11,000 Sony Corp. 760,375
11,500 Toyota Motor Corp. 580,750
3,191,712
NETHERLANDS - 3.29%
2,700 Akzo N.V. 189,675
5,618 Koninklijke Ahold N.V. 385,535
18,000 Polygram N.V 886,500
1,461,710
NEW ZEALAND - 0.79%
10,000 Telecom Corp.
of New Zealand Ltd. 355,000
NORWAY - 0.39%
3,555 Norsk Hydro A.S. 173,751
SPAIN - 3.05%
21,000 Repsol S.A. 855,750
7,000 Telefonica De Espana S. A. 502,250
1,358,000
SWEDEN - 3.82%
8,600 Aktiebolaget Electrolux 537,500
26,000 Ericsson (L.M.) Telephone Co. Cl. B 879,125
12,500 Svenska Cellulosa Aktiebol* 281,236
1,697,861
SWITZERLAND - 3.21%
4,280 ABB A.G. 513,973
8,650 Nestle S.A. 505,867
6,613 Novartis A. G. 409,921
1,429,761
UNITED KINGDOM - 13.91%
10,000 Bass Public Ltd. Co. 262,500
22,482 Cadbury Schweppes Ltd. PLC 806,542
14,200 Carlton Communications PLC 609,269
18,097 Grand Metropolitan Ltd. PLC 576,842
15,200 Reuters Holdings PLC 884,450
60,610 Royal Bank of Scotland PLC* 534,428
9,000 SmithKline Beecham PLC 630,000
5,000 Unilever PLC 523,750
13,000 Vodafone Group 573,625
105,000 Waste Management International 787,500
6,188,906
UNITED STATES - 0.82%
8,000 Sprint Corp.* 364,000
TOTAL COMMON
STOCKS (ADR's) - 77.36% 34,410,191
Face Market
Amount Description Value
SHORT-TERM CORPORATE NOTES - 15.70%
$ 500,000 Archer-Daniels-Midland Co.,
5.28%, due April 3, 1997 499,780
500,000 Armstrong World Industries,
5.24%, due April 4, 1997 499,709
500,000 BellSouth Telecommunications,
5.21%, due April 2, 1997 499,855
500,000 Emerson Electric Co.,
5.45%, due April 23, 1997 498,259
500,000 Engelhard Corp.,
5.47%, due April 21, 1997 498,405
500,000 General Mills Inc.,
5.32%, due April 18, 1997 498,670
500,000 General Re Corp.,
5.53%, due April 25, 1997 498,080
500,000 Gillette Co.,
5.27%, due April 10, 1997 499,268
500,000 Hershey Foods Corp.,
5.30%, due May 2, 1997 497,644
500,000 Marsh & McLennan Cos. Inc.,
5.65%, due April 15, 1997 498,823
500,000 Nalco Chemical Co.,
5.35%, due April 17, 1997 498,737
500,000 Penney (J.C.) Funding Corp.,
5.31%, due April 18, 1997 498,672
500,000 Pepsico Inc.,
5.27%, due April 9, 1997 499,341
500,000 Wisconsin Electric Power Co.,
5.50%, due April 11, 1997 499,160
TOTAL SHORT-TERM
CORPORATE NOTES - 15.70% 6,984,403
GOVERNMENT SPONSORED
ENTERPRISES - 2.24%
$ 500,000 Federal Home Loan Banks,
5.25%, due April 17, 1997 498,760
500,000 Federal National Mortgage
Association,
5.21%, due May 2, 1997 497,685
TOTAL GOVERNMENT
SPONSORED ENTERPRISES - 2.24% 996,445
REPURCHASE AGREEMENT - 6.41%
2,850,000 Northern Trust Co.,
6.20%, due April 1, 1997
(Collateralized by U.S.
Treasury Notes, 6.50%,
due May 15, 1997) 2,850,000
TOTAL INVESTMENTS - 101.71% $ 45,241,039
Other assets less liabilities - (1.71%) (760,176)
TOTAL NET ASSETS - 100.00%
(equivalent to $14.31 per share;
10,000,000 shares of $1.00 par
value capital shares authorized;
3,108,179 shares outstanding) $ 44,480,863
ADR - American Depository Receipt
*Non ADR
BASIS OF DETERMINING MARKET VALUE. Each investment is valued at the
latest sales price on March 31, 1997, 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
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
