UMB SCOUT FUNDS
WORLDWIDE FUND
(UMBWX)
WORLDWIDE SELECT FUND
ANNUAL REPORT
JUNE 30, 1999
No-load mutual funds that seek favorable total returns
by investing in established companies either located outside the U.S.
or whose principal business is carried on outside the country.
TO THE SHAREHOLDERS
The past 12 months have been especially noteworthy for the global economy
and financial markets. Attention was fixed last fall on the financial
contagion spreading from Southeast Asia to Russia and elsewhere. Interest
rates in the developing world were rising or local currencies were
collapsing. There was widespread fear of an economic slowdown because of
slower demand and a flood of industrial capacity.
In the U.S., the Federal Reserve lowered interest rates three times in a
relatively short period and long-term interest rates moved to less than 5%.
All but the "bluest" of blue chip stocks declined sharply.
For the time being, the concerns of late 1998 no longer are on investors'
minds. Most indicators show the world's economies are regaining their
footing and many are growing strongly. Interest rates have increased again,
but apparently not enough to stop this growth. The U.S. is enjoying the
lowest unemployment in decades with very low inflation - a scenario the
textbooks say cannot happen.
Our economic environment has been called a "virtuous cycle," but some
investors are wondering whether it will become a "vicious cycle." We do not
see such a change now, although we continue to watch the economic
indicators very closely. There are few signs that the economy is entering a
long-term slowdown caused by economic excess. Some market watchers point to
the high valuation of U.S. stocks as one such excess, but valuation alone
usually is not enough to make stock prices decline. We see no other
catalyst at this point that would cause a major stock price correction.
In this annual report, you will find more details about the activity and
holdings in the UMB Scout WorldWide Fund and UMB Scout WorldWide Select
Fund during the period. I recently joined the UMB team, and I want to thank
each of you for your confidence in UMB Investment Advisors and the UMB
Scout Funds. We look forward to helping you reach your financial goals.
Sincerely,
/S/William B. Greiner, CFA
William B. Greiner, CFA
Executive Vice President / Chief Investment Officer
UMB Investment Advisors
Shares of the UMB 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 ("FDIC"). These
shares involve investment risks, including the possible loss of the
principal invested.
TO THE SHAREHOLDERS
The UMB Scout WorldWide Fund closed the quarter ended June 30, 1999, at
$20.38 per share and had a total return (price change and reinvested
distributions) of 7.39% for the quarter and 10.90% for the fiscal year.
The UMB Scout WorldWide Select Fund closed the quarter at $10.20 per share
and had a total return of 4.72% for the month of June and 2.00% since
inception on May 17, 1999.
The Funds invest in a diversified portfolio of equity securities of
established companies either located outside the U.S. or whose primary
business is done outside the country. They are designed for long-term
investors who are able to accept the risks of international investing.
International markets absorbed a variety of major events during the past
year. Many investors have been surprised by the recent recovery of the
depressed economies in Southeast Asia, where the international economic
problems began. Southeast Asia is a large consumer of paper and chemical
products, particularly those used in making synthetic fibers for garments.
As these economies have increased their demand for such commodities, prices
have turned higher and the outlook for basic industry stocks has improved.
Financial markets worldwide, and especially the economies in Eastern
Europe, felt the shock waves from a collapse last year of the Russian
financial markets. The loss of the Russian market for goods was especially
damaging in Eastern Europe and Germany, and also was an economic damper on
the rest of Western Europe. The fears created by this event caused a flight
to safety among many investors to U.S. Treasury bonds.
The sharp movement in U. S. Treasury prices created problems for interest
rate markets and especially for large "hedge fund" operations that had used
U.S. Treasuries to hedge their interest rate exposure. In October, the
Federal Reserve lowered U.S. interest rates and added substantial liquidity
to the economic system, pushing stock and bond markets higher. The U.S.
economic surge that followed eventually caused some concern about a return
of inflation. The Federal Reserve recently has raised interest rates
slightly and indicated it is watching inflation indicators closely.
The strength in the U.S. economy has not yet been matched elsewhere in the
world. Europe is growing modestly, Latin America is in recession, Southeast
Asia is improving but still down from its peak of several years ago, and
Japan is beginning to show signs of strength with its Asian neighbors and
as it improves its banking system. But worldwide excess capacity in most
areas means there is pricing pressure in almost every industry. Earnings
growth therefore has come from consolidations and cost cutting, not pricing
flexibility, and will be a factor to watch in coming months.
The WorldWide Fund bought no new stocks during the past quarter. The major
portfolio change was an increase in holdings in Japan. Some of the increase
was from appreciation and some was from additional purchases of Canon,
Fuji, Hitachi, Kao and Sony. The WorldWide Fund also added to holdings in
Elan and Fresenius, and increased holdings in Australia to 5.3% of the
portfolio from 1.54% on March 31. This was the result of purchases of Amcor
and Coca-Cola Amatil. Amatil also has operations in Korea, the Philippines
and Indonesia. At the end of the quarter, YPF, an Argentine oil company,
was purchased by Repsol, a Spanish oil company in which we also owned
stock. This eliminated YPF, our only Argentine holding, from the portfolio.
For the six months ended June 30, 1999, shareholders of the UMB Scout
WorldWide Fund received an ordinary income dividend of $.12 per share and
no long-term capital gain. For corporate shareholders, .0013% of ordinary
income distributions qualify for the corporate dividends received
deduction.
The introduction of the UMB Scout WorldWide Select Fund in May 1999 offers
a new option for investors seeking international diversification. While it
mirrors the investment objective of the WorldWide Fund, the WorldWide
Select Fund normally will maintain a smaller cash reserve than its parent
fund, investing at least 90% of assets in the chosen securities. The new
Fund still will benefit from the long-term management style that is the key
to the UMB Scout Funds' investment philosophy.
We appreciate your interest and participation in the UMB Scout WorldWide
Fund or UMB Scout WorldWide Select Fund, and we welcome your questions and
comments.
Sincerely,
/S/James L. Moffett
James L. Moffett
UMB Investment Advisors
CHART - HYPOTHETICAL GROWTH OF $10,000
UMB Scout WorldWide Fund as of June 30, 1999
CHART - COMPARATIVE RATES OF RETURN
UMB Scout WorldWide Fund as of June 30, 1999
1 1/2 Years 3 1/2 Years Inception
UMB Scout WorldWide
Fund 19.30% 18.76% 15.44%
Lipper Global Fund Index* 16.19% 15.53% N.A.
MSCI EAFE Index-
U.S. Dollars* 16.20% 9.14% N.A.
Inception - September 14, 1993.
UMB Scout WorldWide Fund's average annual compound returns for 1- and 5-
year periods ended June 30, 1999, are 10.90% and 16.74%, respectively.
Performance data contained in this report are for past periods only. Past
performance is not predictive of future results. Investment return and
share value will fluctuate, and redemption value may be more or less than
the original cost. Along with the potential for higher returns,
international investments carry some additional risks from currency
fluctuations, economic and political factors, as well as differences in
accounting.
*Unmanaged index of stocks, bonds or mutual funds (there are no direct
investments or fees in these indices).
CHART -
HISTORICAL PER SHARE RECORD
UMB Scout WorldWide Fund
Income & Cumulative**
Net Short-Term Long-Term Value Per
Asset Gains Gains Share Plus
Value Distribution Distribution Distributions
12/31/93 $10.68 $ 0.03 $ - $10.71
12/31/94 10.84 0.24 - 11.11
12/31/95 12.08 0.30 0.04 12.69
12/31/96 13.94 0.24 0.10 14.89
12/31/97 16.02 0.31 0.16 17.44
12/31/98 18.56 0.31 0.02 20.31
06/30/99* 20.38 0.12 - 22.25
* Six-month only. Distributions typically occur in June and December.
** Does not assume any compounding of reinvested distributions.
Table shows calendar year distributions and net asset values; may differ
from fiscal year annual reports.
CHART - HYPOTHETICAL GROWTH OF $10,000
UMB Scout WorldWide Select Fund as of June 30, 1999
CHART - COMPARATIVE RATES OF RETURN
UMB Scout WorldWide Select Fund as of June 30, 1999
Month Inception
UMB Scout WorldWide Select Fund 4.72% 2.00%
Lipper Global Fund Index* 5.04% N.A.
MSCI EAFE Index-U.S. Dollars* 3.90% N.A.
Inception - May 17, 1999.
Performance data contained in this report are for past periods only. Past
performance is not predictive of future results. Investment return and
share value will fluctuate, and redemption value may be more or less than
the original cost. Along with the potential for higher returns,
international investments carry some additional risks from currency
fluctuations, economic and political factors, as well as differences in
accounting.
*Unmanaged index of stocks, bonds or mutual funds (there are no direct
investments or fees in these indices).
CHART - top ten equity holdings
UMB Scout WorldWide Fund
Market Percent
Value (000's) of Total
Nokia, CP ADS, Pfd. $ 4,432 2.45%
Aracruz Celulose SA 3,872 2.14%
Sony Corp. 3,742 2.07%
Carlton Communications PLC 3,516 1.95%
SAP A.G. 3,464 1.92%
Telecomunicacoes Brasileiras 3,422 1.89%
Takeda Chemical Inds. 3,244 1.80%
Hitachi, Ltd. 3,164 1.75%
Canon Inc. 3,154 1.75%
Siemens A.G. 3,147 1.74%
Top Ten Equity Holdings Total: $ 35,157* 19.46%
As of June 30, 1999, statement of assets. Subject to change.
*Market Values are rounded; may not equal total.
CHART - TOP TEN EQUITY HOLDINGS
UMB Scout WorldWide Select Fund
Market Percent
Value (000's) of Total
Nokia, CP ADS, Pfd. $160 5.60%
Agribrands International, Inc. 75 2.63%
Aracruz Celulose SA 73 2.54%
Fuji Photo Film Ltd. 72 2.52%
Luxottica Group S.p.A. 67 2.34%
Magna International Cl. A 66 2.32%
Novo-Nordisk A.S. 64 2.24%
Alcatel Alsthom 62 2.18%
Siemens A.G. 60 2.09%
BCE Inc. 59 2.07%
Top Ten Equity Holdings Total: $758* 26.53%
As of June 30, 1999, statement of assets. Subject to change.
*Market Values are rounded; may not equal total.
CHART - COUNTRY DIVERSIFICATION
UMB Scout WorldWide Fund
Based on total investments as of June 30, 1999. Subject to change.
CHART - COUNTRY DIVERSIFICATION
UMB Scout WorldWide Select Fund
Based on total investments as of June 30, 1999. Subject to change.
FINANCIAL STATEMENTS
JUNE 30, 1999
STATEMENT OF NET ASSETS
MARKET
SHARES COMPANY VALUE
WORLDWIDE PORTFOLIO
COMMON STOCKS (ADR's) - 84.58%
AUSTRALIA - 3.67%
116,000 Amcor Ltd. $ 2,610,000
56,580 Broken Hill Proprietary Co. Ltd. 1,340,239
220,000 Coca-Cola Amatil Ltd. 1,773,398
19,380 Coles Myer Ltd. 910,860
6,634,497
AUSTRIA - 1.09%
22,000 OMV A.G.*1 1,962,337
BELGIUM - 0.99%
27,000 Solvay NPV1 1,791,832
BRAZIL - 4.04%
176,000 Aracruz Celulose SA 3,872,000
37,940 Telecomunicacoes Brasileiras 3,421,714
7,293,714
CANADA - 5.68%
60,000 BCE Inc. 2,958,750
93,700 Canadian Pacific Ltd. 2,231,231
105,000 Imperial Oil Ltd. 1,988,438
49,200 Magna International Cl. A 2,792,100
50,000 Prudential Steel Ltd.1 290,531
10,261,050
CHILE - 1.40%
52,500 Embotelladora Andina SA De Chile 1,050,000
41,784 Sociedad Quimica Minera De Chile 1,478,109
2,528,109
DENMARK - 1.71%
57,800 Novo-Nordisk A.S. 3,092,300
FINLAND - 2.45%
48,400 Nokia, CP ADS, Pfd. 4,431,625
FRANCE - 5.53%
89,558 Alcatel Alsthom 2,541,208
12,770 Carrefour Supermarche, SA1 1,876,682
61,800 Rhone-Poulenc SA 2,850,525
12,200 Schlumberger Ltd. 776,988
30,035 Total SA* 1,935,380
9,980,783
GERMANY - 7.87%
19,166 Daimler Benz A. G. $ 1,703,378
49,700 Dresdner Bank A.G. 1,932,276
75,000 Fresenius Medical Care ADR 1,487,134
36,400 Henkel KGAA, Pfd.1 2,485,103
10,240 SAP A.G.1 3,463,848
40,800 Siemens A.G. 3,147,267
14,219,006
HONG KONG - 1.00%
370,000 CLP Holdings Ltd. 1,797,867
HUNGARY - 1.42%
93,300 Magyar Tavkozlest Rt. 2,565,750
IRELAND - 1.60%
104,000 Elan Corp. PLC* 2,886,000
ITALY - 5.27%
60,560 Benetton Group S.p.A. 2,395,905
166,000 Luxottica Group S.p.A. 2,583,375
1,861,000 Parmalat Finanziaria S.p.A.1 2,437,447
20,000 Telecom Italia S.p.A. 2,103,750
9,520,477
JAPAN - 12.54%
108,300 Canon Inc. 3,154,238
80,000 Fuji Photo Film Ltd. 3,040,000
33,500 Hitachi, Ltd. 3,163,656
22,400 Ito Yokado, Ltd. 1,520,400
110,000 Kao Corp.1 3,089,888
33,900 Sony Corp. 3,741,712
70,000 Takeda Chemical Inds.1 3,244,382
26,500 Toyota Motor Corp. 1,696,000
22,650,276
NETHERLANDS - 2.65%
24,294 Aegon N.V. 1,797,756
30,400 Akzo N.V. 1,288,200
49,108 Koninklijke Ahold N.V. 1,700,364
4,786,320
NEW ZEALAND - 0.87%
45,000 Telecom Corp. 1,572,188
NORWAY - 1.24%
58,555 Norsk Hydro A.S. 2,239,729
PORTUGAL - 0.84%
36,700 Portugal Telecom S.A. 1,511,581
SPAIN - 2.36%
105,000 Repsol S.A. $ 2,132,813
14,423 Telefonica De Espana S. A.* 2,121,954
4,254,767
SWEDEN - 3.83%
47,200 Aktiebolaget Electrolux 1,982,400
52,000 Ericsson (L.M.) Telephone Co. Cl. B 1,712,750
123,500 Svenska Cellulosa Aktiebol1 3,228,043
6,923,193
SWITZERLAND - 2.01%
4,280 ABB A.G. 633,222
16,650 Nestle S.A. 1,499,967
20,613 Novartis A. G. 1,504,946
3,638,135
UNITED KINGDOM - 12.28%
150,528 Bass Public Ltd. Co. 2,248,512
22,000 BP Amoco PLC 2,387,000
80,938 Cadbury Schweppes Ltd. PLC 2,154,974
82,000 Carlton Communications PLC 3,515,750
40,000 Coca Cola Beverages PLC*1 85,120
30,979 Diageo PLC 1,332,097
40,000 Imperial Chemical Industries PLC 1,590,000
24,973 Reuters Holdings PLC 2,024,374
62,425 Royal Bank of Scotland PLC1 1,271,334
32,000 SmithKline Beecham PLC 2,114,000
40,178 Unilever PLC 1,496,631
10,000 Vodafone Group 1,970,000
22,189,792
UNITED STATES - 2.24%
75,000 Agribrands International Inc.* 2,967,188
16,000 Sprint Corp. 845,000
4,000 Sprint PCS* 228,500
4,040,688
TOTAL COMMON STOCKS (ADR's) (Cost $118,019,681) - 84.58% 152,772,016
FACE MARKET
AMOUNT DESCRIPTION VALUE
SHORT-TERM CORPORATE NOTES - 13.80%
$ 1,500,000 Abbott Laboratories,
4.80%, due July 8, 1999 $ 1,498,400
1,500,000 Ameritech Capital Fund Corp.,
5.10%, due August 9, 1999 1,491,500
1,500,000 Archer Daniels Midland Co.,
4.82%, due July 8, 1999 1,498,393
1,500,000 Becton Dickenson & Co.,
5.15%, due August 13, 1999 1,490,558
2,000,000 Bellsouth Telecommunications, Inc.,
4.83%, due July 16, 1999 1,995,707
1,500,000 Chevron USA, Inc.,
5.01%, due July 28, 1999 1,494,155
1,500,000 Coca-Cola Co.,
4.79%, due July 9, 1999 1,498,204
1,500,000 Deere & Co.,
4.77%, due July 6, 1999 1,498,808
2,000,000 duPont (E.I.) deNemours & Co.,
4.85%, due August 6, 1999 1,990,031
1,500,000 Gannett Co., Inc.,
4.78%, due July 27, 1999 1,494,622
2,000,000 General Re Corp.,
5.12%, due July 28, 1999 1,992,036
1,500,000 Johnson & Johnson Co.,
4.85%, due August 6, 1999 1,492,523
1,500,000 Lucent Technologies, Inc.,
4.95%, due August 2, 1999 1,493,194
1,000,000 Proctor & Gamble Co.,
4.90%, due July 2, 1999 999,728
1,500,000 Progress Capital Holdings, Corp.,
4.90%, due July 2, 1999 1,499,591
1,500,000 Sara Lee Corp.,
4.80%, due July 1, 1999 1,499,800
TOTAL SHORT-TERM CORPORATE NOTES (Cost $24,927,250) - 13.80% 24,927,250
GOVERNMENT SPONSORED ENTERPRISES - 1.92%
1,000,000 Federal Home Loan Mortgage Corp.,
4.76%, due July 8, 1999 998,942
1,500,000 Federal Home Loan Mortgage Corp.,
5.03%, due October 21,1999 1,476,317
1,000,000 Federal National Mortgage Association,
4.70%, due August 9,1999 994,778
TOTAL GOVERNMENT SPONSORED ENTERPRISES (Cost $3,470,037) - 1.92% 3,470,037
REPURCHASE AGREEMENT (Cost $5,175,000) - 2.86%
5,175,000 Northern Trust Co.,
4.79%, due July 1, 1999
(Collateralized by U.S. Treasury Notes,
7.125%, due September 30, 1999) 5,175,000
TOTAL INVESTMENTS (Cost $151,591,968) - 103.16% 186,344,303
Other assets less liabilities - (3.16%) (5,698,647)
TOTAL NET ASSETS - 100.00%
(equivalent to $20.38 per share;
10,000,000 shares of $1.00 parue
capital shares authorized;
8,862,178 shares outstanding) 180,645,656
For federal income tax purposes, the identified cost of investments owned
at June 30, 1999 was $151,591,968. Net unrealized appreciation for federal
income tax purposes was $34,752,335, which is comprised of unrealized
appreciation of $38,325,226 and unrealized depreciation of $3,572,891.
*Non-income producing security
ADR - American Depository Receipt
1 Non ADR
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
JUNE 30, 1999
STATEMENT OF NET ASSETS
MARKET
SHARES COMPANY VALUE
WORLDWIDE SELECT PORTFOLIO
COMMON STOCKS (ADR's) - 91.59%
AUSTRALIA - 3.76%
2,600 Amcor Ltd.* $ 58,500
1,200 Broken Hill Proprietary Co. Ltd.* 28,425
1,400 Coca-Cola Amatil Ltd.* 11,285
200 Coles Myer Ltd.* 9,400
107,610
AUSTRIA - 0.31%
100 OMV A.G.*1 8,920
BELGIUM - 0.46%
200 Solvay NPV1 13,273
BRAZIL - 4.55%
3,300 Aracruz Celulose SA* 72,600
640 Telecomunicacoes Brasileiras 57,720
130,320
CANADA - 8.18%
1,200 BCE Inc. 59,175
2,200 Canadian Pacific Ltd. 52,388
2,600 Imperial Oil Ltd.* 49,237
1,170 Magna International Cl. A 66,397
1,200 Prudential Steel Ltd.1 6,973
234,170
CHILE - 1.95%
1,200 Embotelladora Andina SA De Chile* 24,000
900 Sociedad Quimica Minera De Chile* 31,838
55,838
DENMARK - 2.24%
1,200 Novo-Nordisk A.S.* 64,200
FINLAND - 5.60%
1,750 Nokia, CP ADS, Pfd.* 160,234
FRANCE - 6.39%
2,200 Alcatel Alsthom 62,425
180 Carrefour Supermarche, SA*1 26,453
1,200 Rhone-Poulenc SA* 55,350
600 Total SA* 38,663
182,891
GERMANY - 9.38%
600 Daimler Benz A.G.* 53,325
900 Dresdner Bank A.G.* 34,991
1,600 Fresenius Medical Care ADR* 32,100
500 Henkel KGAA, Pfd.*1 34,136
150 SAP A.G. ORD*1 50,740
100 SAP A.G. ADR* 3,462
775 Siemens A.G.* 59,783
268,537
HUNGARY - 1.44%
1,500 Magyar Tavkozlest Rt.* 41,250
IRELAND - 1.99%
2,050 Elan Corp. PLC* 56,888
ITALY - 5.28%
1,200 Benetton Group S.p.A. 47,475
4,300 Luxottica Group S.p.A.* 66,919
12,000 Parmalat Finanziaria S.p.A.1 15,717
200 Telecom Italia S.p.A.* 21,037
151,148
JAPAN - 9.32%
1,900 Canon Inc. 55,338
1,900 Fuji Photo Film Ltd.* 72,200
300 Hitachi, Ltd.* 28,331
200 Ito Yokado, Ltd.* 13,575
200 Kao Corp.*1 5,618
440 Sony Corp.* 48,565
100 Takeda Chemical Inds.*1 4,635
600 Toyota Motor Corp.* 38,400
266,662
NETHERLANDS - 2.88%
350 Aegon N.V.* 25,900
600 Akzo N.V.* 25,425
900 Koninklijke Ahold N.V.* 31,163
82,488
NEW ZEALAND - 1.10%
900 Telecom Corp. 31,444
NORWAY - 1.60%
1,200 Norsk Hydro A.S.* 45,900
PORTUGAL - 0.86%
600 Portugal Telecom S.A.* 24,712
SPAIN - 2.87%
2,600 Repsol S.A. 52,812
200 Telefonica De Espana S.A.* 29,425
82,237
SWEDEN - 4.75%
900 Aktiebolaget Electrolux* 37,800
1,200 Ericsson (L.M.) Telephone Co. Cl. B* 39,525
2,200 Svenska Cellulosa Aktiebol*1 58,607
135,932
SWITZERLAND - 0.83%
100 Nestle S.A. 9,009
200 Novartis A.G.* 14,600
23,609
UNITED KINGDOM - 13.22%
3,650 Bass Public Ltd. Co. 54,523
200 BP Amoco PLC* 21,700
1,600 Cadbury Schweppes Ltd. PLC* 42,600
1,300 Carlton Communications PLC* 55,737
600 Diageo PLC* 25,800
800 Imperial Chemical Industries PLC* 31,800
600 Reuters Holdings PLC* 48,638
1,000 Royal Bank of Scotland PLC*1 20,365
600 SmithKline Beecham PLC* 39,637
900 Unilever PLC* 33,525
20 Vodafone Group 3,940
378,265
UNITED STATES - 2.63%
1,900 Agribrands International, Inc.* 75,169
TOTAL COMMON STOCKS (ADR's) (Cost $2,536,903) - 91.59% 2,621,697
FINANCIAL STATEMENTS
JUNE 30, 1999
STATEMENT OF NET ASSETS
FACE MARKET
AMOUNT DESCRIPTION VALUE
REPURCHASE AGREEMENT (Cost $350,000) - 12.23%
350,000 Northern Trust Co., 4.79%, due July 1, 1999
(Collateralized by U.S. Treasury Notes,
7.125%, due September 30, 1999) 350,000
TOTAL INVESTMENTS (Cost $2,886,903) - 103.82% 2,971,697
Other assets less liabilities - (3.82%) (109,897)
TOTAL NET ASSETS - 100.00%
(equivalent to $10.20 per share; 10,000,000 shares of
$1.00 par value capital shares authorized;
280,610 shares outstanding) 2,861,800
For federal income tax purposes, the identified cost of investments owned
at June 30, 1999 was $2,886,903. Net unrealized appreciation for federal
income tax purposes was $84,794, which is comprised of unrealized
appreciation of $121,174 and unrealized depreciation of $36,380.
*Non-income producing security
ADR - American Depository Receipt
1Non ADR
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
JUNE 30, 1999
STATEMENTS OF ASSETS AND LIABILITIES
WORLDWIDE
WORLDWIDE SELECT
ASSETS:
Investment securities, at market value
(identified cost $151,591,968 and
$2,886,903, respectively) $ 186,344,303 $ 2,971,697
Cash 867,012 26,434
Dividends receivable - 2,214
Interest receivable 218,369 -
Receivable for capital shares sold 195,606 -
Total assets 187,625,290 3,000,345
LIABILITIES:
Payments for investments purchased 6,979,634 138,545
Total liabilities 6,979,634 138,545
NET ASSETS $ 180,645,656 2,861,800
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) 143,724,513 $ 2,771,494
Accumulated undistributed income:
Net investment income 456,766 3,315
Net realized gain on investment
transactions 1,712,042 2,197
Net unrealized appreciation on investments
and translation of assets and
liabilities in foreign currencies 34,752,335 84,794
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 180,645,656 2,861,800
Capital shares, $1.00 par value
Authorized 10,000,000 10,000,000
Outstanding 8,862,178 280,610
NET ASSET VALUE PER SHARE $ 20.38 10.20
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 1999,
AND THE PERIOD MAY 17, 1999 (INCEPTION) TO JUNE 30, 1999
STATEMENTS OF OPERATIONS
WORLDWIDE
WORLDWIDE SELECT
INVESTMENT INCOME:
Income:
Dividends $ 1,734,416 $ 2,786
Interest 1,332,664 2,033
3,067,080 4,819
Expenses:
Management fees 991,992 1,504
Government fees 42,646 -
1,034,638 1,504
Net investment income 2,032,442 3,315
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY:
Net realized gain from investment and foreign
Currency transaction 1,704,444 2,197
Increase in net unrealized appreciation
on investments and translation of assets
and liabilities in foreign currencies 12,313,756 84,794
Net realized and unrealized gain on
investments and foreign 14,018,200 86,991
Net increase in net assets resulting $ 16,050,642 $ 90,306
from operations
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
WORLDWIDE
SELECT
FOR THE PERIOD
WORLDWIDE WORLDWIDE MAY 17, 1999
YEAR ENDED YEAR ENDED (INCEPTION) T0
JUNE 30, 1999 JUNE 30, 1998 JUNE 30, 1999
</CAPTION>
<S> <C> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 2,032,442 $ 1,258,411 $ 3,315
Net realized gain from investment
and foreign currency transaction 1,704,444 243,483 2,197
Increase in net unrealized appreciation
on investments and translation of assets
and liabilities in foreign currencies 12,313,756 9,912,299 84,794
Net increase in net assets resulting
from operations 16,050,642 11,414,193 90,306
DISTRIBUTIONS TO SHAREHOLDERS FROM:*
Net investment income (1,687,760) (1,296,555) -
Net realized gain from
investment transactions (91,395) (776,136) -
Decrease in net assets from distributions (1,779,155) (2,072,691) -
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 7,511,796, 2,490,461
and 280,610 shares sold, respectively 141,947,545 43,567,740 2,771,494
Net asset value of 62,507 and 88,697 shares
issued for reinvestment of distributions 1,233,449 1,479,088 -
143,180,994 45,046,828 2,771,494
Cost of 3,181,304 and 1,094,617
shares redeemed (60,041,596) (18,914,648) -
Net increase in net assets from capital
share transactions 83,139,398 26,132,180 2,771,494
Net increase in net assets 97,410,885 35,473,682 2,861,800
NET ASSETS:
Beginning of period 83,234,771 47,761,089 -
End of year (including undistributed net
investment income of $456,766, $119,681
and $3,315 respectively)
180,645,656 $ 83,234,771 $ 2,861,800
*Distributions to shareholders:
Income dividends per share $ 0.23 $ 0.32 $ -
Capital gains distribution per share $ 0.02 $ 0.22 $ -
</TABLE>
See accompanying Notes to Financial Statements.
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. Its
shares are currently issued in two series (WorldWide and WorldWide Select)
with each series, in effect, representing a separate fund. 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 - Amounts denominated in or expected to settle in foreign
currencies (FC) are translated into United States dollars (US$) at rates
provided by an independent pricing service on the following basis:
a. Market value of investment securities, other than assets and liabilities
- - at the closing rate of exchange on June 30, 1999.
b. Purchases and sales of investment securities, income and expenses - at
the rate of exchange prevailing on the respective dates of such
transactions (or at the average rate if significant rate fluctuations have
not occurred).
c. The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
Reported net realized foreign exchange gains or losses arise from
sales and maturities of short-term securities, sales of FCs, currency gains
or losses realized between the trade and settlement dates on securities
transactions, the difference between the amounts of dividends, interest and
foreign withholding taxes recorded on the Fund's books, and the US$
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities other than investments in securities at fiscal year end,
resulting from changes in the exchange rate.
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, 1999 (excluding repurchase
agreements and short-term securities), were as follows:
Other than
U.S. Government U.S. Government
WorldWide Fund Securities Securities
Purchases $ 79,516,060 $ -
Proceeds from sales 7,477,942 -
WorldWide Select Fund
Purchases $ 2,610,648 $ -
Proceeds from sales 75,971 -
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
<TABLE>
Per share income and capital changes for a share
outstanding throughout the period.
<CAPTION> WORLDWIDE
WORLDWIDE WORLDWIDE WORLDWIDE WORLDWIDE WORLDWIDE SELECT
1999 1998 1997 1996 1995 1999*
</CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 18.62 $ 16.00 $ 12.90 $ 12.08 $ 10.84 $ 10.00
Income from investment operations:
Net investment income 0.26 0.29 0.26 0.14 0.22 0.01
Net realized and unrealized gains
on securities 1.75 2.87 3.12 0.86 1.36 0.19
Total from investment operations 2.01 3.16 3.38 1.00 1.58 0.20
Distributions from:
Net investment income (0.23) (0.32) (0.21) (0.14) (0.22) -
Net realized gain on
investment transactions (0.02) (0.22) (0.07) (0.04) (0.12) -
Total distributions (0.25) (0.54) (0.28) (0.18) (0.34) -
Net asset value, end of period $ 20.38 $ 18.62 $ 16.00 $ 12.90 $ 12.08 $ 10.20
Total return 11% 20% 26% 17% 15% 16%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 181 $ 83 $ 48 $ 31 $ 24 $ 3
Ratio of expenses to average net assets 0.86% 0.87% 0.86% 0.85% 0.85% 0.85%
Ratio of net investment income
to average net assets 1.69% 2.01% 1.93% 2.40% 1.97% 1.90%
Portfolio turnover rate 8% 3% 18% 5% 27% 6%
Average commission rate** $ .0509 $ .0540 $ .0315 $ .0468 - $ .0873
</TABLE>
*The Fund was capitalized on March 17, 1999, with $100,000, representing
10,000 shares at a net asset value of $10.00 per share. Initial public
offering was made on May 17, 1999, at which time net asset value was $10.00
per share. Ratios for this initial 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 UMB Scout WorldWide Fund,
Inc.:
We have audited the accompanying statements of assets and liabilities of
UMB Scout WorldWide Fund, Inc., including the statements of net assets, as
of June 30, 1999, and the related statements of operations, 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, 1999, 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 UMB Scout WorldWide Fund, Inc., as of June 30, 1999, 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 24, 1999
This report has been prepared for the information of the Shareholders of
UMB 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 UMB Scout
Funds are offered only by the Prospectus, a copy of which may be obtained
from Jones & Babson, Inc.
UMB SCOUT FUNDS
100% No-Load Mutual Funds
Stock Fund
Stock Select Fund
Regional Fund
WorldWide Fund
WorldWide Select Fund
Capital Preservation Fund
Balanced Fund
Bond Fund
Kansas Tax-Exempt Bond Fund*
Money Market Fund
Tax-Free Money Market Fund
*Available in Kansas and Missouri only.
MANAGER AND INVESTMENT COUNSEL
UMB Bank, n.a., Kansas City, Missouri
AUDITORS
Baird, Kurtz & Dobson, Kansas City, Missouri
LEGAL COUNSEL
Stradley, Ronon, Stevens & Young, LLP
Philadelphia, Pennsylvania
CUSTODIAN
UMB Bank, n.a., Kansas City, Missouri
UNDERWRITER, DISTRIBUTOR
AND TRANSFER AGENT
Jones & Babson, Inc.
Kansas City, Missouri
UMB Scout Funds
P.O. Box 219757
Kansas City, MO 64121-9757
TOLL FREE 800-996-2862
www.umb.com
"UMB" and "Scout" are registered service marks of UMB Financial
Corporation.
UMB Financial Corporation also claims service mark rights to the Scout
design.
JB25B(8/99) 508765
