UMB Scout Funds
WorldWide Fund
(UMBWX)
WorldWide Select Fund
(UWWSX)
Annual Report June 30, 2000
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
In the past year, the financial markets continued to capture the nation's
fancy. The major drivers regarding financial asset prices over the last 12
months have been earnings and interest rates, as is typically the case.
However, last fall we witnessed a temporary detour from the "norm" as we
saw what turned out to be a speculative "bubble" being created when
investors purchased anything labeled ".com." While that bubble has not
burst, it is fair to say that much of the speculative "froth" has since
been eliminated from asset valuation levels.
In an effort to get a handle on the economy, Alan Greenspan conducted a
series of six interest rate increases designed to slow the economic
environment and ease any upward pressure on inflation rates. We are
beginning to see signs that the growth rate in the economy is decreasing.
For the time being, it appears that Mr. Greenspan's efforts were successful.
But what about the future? Will the economy continue to slow? And if it
does slow, could we slip into a recession? These are very significant
questions on many investors' minds. While we do not know what the future
holds, history would suggest that the economy is going to slow during the
remainder of 2000. Keep in mind that historically, the Federal Reserve,
currently headed by Greenspan, has had difficulty "fine tuning" the
economy. It has been shown that once the economy starts to slow, keeping it
out of a recessionary environment can be difficult. In our minds, recession
poses a major potential risk which investors may have to wrestle with
during the next 12 months.
Longer term, we continue to look at the investment landscape in a positive
sense. Inflation is low, and the economy is growing nicely. As long as
these two trends are at work, we believe that financial assets will
generate satisfactory returns.
In closing, we at UMB Investment Advisors would like to thank you, our
shareholders, for your continued support of the UMB Scout Funds. We fully
understand and appreciate the trust you have placed in our hands. We will
work hard to maintain that trust.
Respectfully,
/s/William B. Greiner
William B. Greiner
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") or any
other government agency. These shares involve investment risks, including
the possible loss of the principal invested.
TO THE SHAREHOLDERS
Worldwide stock markets have provided a lot of excitement and movement over
the last year. The Morgan Stanley EAFE (Europe, Australia & Far East) Index
had a total return of 17.29%. But the majority of that return, and then
some, was in the first half of the fiscal year. Since December 31, 1999 the
Morgan Stanley EAFE Index returned -4.07%. Most of the foreign markets were
up in the first half of the fiscal year, but the second half has seen much
weakness, especially in London and Tokyo.
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.
Domestically not a lot has happened, with the exception of the NASDAQ Index
being up 48%. In contrast, the Dow's return was -3.57% and the Standard &
Poor's 500 return was up 7.25%. The real excitement, of course, has been
technology, which is heavily weighted in the NASDAQ Index.
Technology took off at the end of October and had an incredible run into
early March. Foreign markets were also driven by technology, with a focus
on telecommunications and telecommunications equipment, like Nokia,
Ericsson, Nortel Networks and Alcatel. The WorldWide Fund has continued
this focus, adding Cable & Wireless Optus and Sonera to the portfolio.
Cable & Wireless Optus provides telecommunication services in Australia
including mobile communications, internet services and cable TV. Sonera,
originally one of Finland's traditional telephone companies, has grown
to be the top provider for mobile communications with a 65% market share.
Sonera also has mobile investments in other countries (including Turkey,
the Baltic States and Hungary) and is a major provider of internet access.
One of the leading trends in technology is for companies to out-source the
manufacturing function to other companies such as Flextronics, which is
based in Singapore. Flextronics' services go beyond manufacturing to
include product design, inventory management, assembly and distribution.
Customers include companies like Bay Networks, Microsoft, Cisco and Philips
Electronics. BioChem Pharma is a Canadian biotech company. They have two
major products at this time: one a cornerstone in the treatment of HIV and
the other a treatment for chronic Hepatitis B.
When Brazil privatized its phone system and split it up into twelve pieces,
we chose to hold a security called Telebras Holders, which retained our
position in the Brazilian phone system. Since then, some changes have
occurred, which necessitated the spinning off of some of those 12
subsidiaries directly so that Telefonica, the Spanish telephone company we
also have a substantial interest in, could purchase some of the pieces. One
of these pieces is Tele Norte Leste. We have also added Embratel to the
portfolio, which is the long distance provider of voice, data and video
telecommunications in Brazil. We chose to use the Telebras Holders
initially because of the lack of information on the twelve component parts.
As these companies have become more seasoned and information more
available, we will probably choose to sell the Telebras Holders and
purchase the specific companies instead.
These stock price movements have been against a background of very
favorable economic news. Earnings growth in general has come through very
nicely and inflation has been fairly well under control.
Around the world investors have been keeping an eye on our Federal Reserve
Bank, which has been concerned about the economy becoming too stimulated by
the irrational exuberance stemming from the stock market. The Fed has also
been worried about inflation rising as unemployment levels have come down
and some commodity prices have risen, particularly oil.
In fact, oil may be the major fly in the ointment as OPEC restricted
production in early 1999, which has lead to higher oil prices. As much as
we would like to blame OPEC totally for this, it also coincided with
recovery in the economies of Southeast Asia and the increased demand for
gasoline in this country to fuel the large gas guzzling vehicles which we
choose to drive. We think this situation will continue and have maintained
an over-weighted position in the energy sector.
The Fed started raising interest rates last year at this time, but these
increases really had little effect when the supply of money was increased
as we went into the end of the year. If you remember, the concern in 1999
was Y2K, where conceivably the computers running our society could have
crashed. The Fed wanted to make sure there was plenty of money in the
system, particularly cash in circulation, so that we would be able to cope
with the situation. Only after the first of the year have they followed a
modestly restrictive monetary policy.
The Fed's policies appear to be working, as the air has been let out of the
technology bubble and the economy's cyclical components, like home building
and retail sales, are slowing down.
Most of this report has focused on economic and sector issues rather than
country or area issues. This is because the economy around the world seems
to be growing modestly and sector themes have dominated investment results
over the last year.
We appreciate your interest in the UMB Scout WorldWide and WorldWide Select
Funds, and 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 (UMBWX)
as of June 30, 2000
Chart - COMPARATIVE RATES OF RETURN
UMB Scout WorldWide Fund (UMBWX)
as of June 30, 2000
1 Year 3 Years 5 Years Inception
UMB Scout WorldWide
Fund 19.40% 16.77% 18.22% 16.01%
Lipper Global Fund Index* 22.59% 15.41% 16.79% N.A.
MSCI EAFE Index-
U.S. Dollars* 17.29% 10.43% 11.61% N.A.
Inception - September 14, 1993.
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 - HYPOTHETICAL GROWTH OF $10,000
UMB Scout WorldWide Select Fund (UWWSX)
as of June 30, 2000
Chart - COMPARATIVE RATES OF RETURN
UMB Scout WorldWide Select Fund (UWWSX)
as of June 30, 2000
Quarter Year Inception
UMB Scout WorldWide
Select Fund -1.07% 18.13% 18.07%
Lipper Global Fund Index* -4.16% 22.59% N.A.
MSCI EAFE Index-U.S. Dollars* -4.02% 17.29% 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 Stock Fund (UMBSX)
Market Percent
Value (000's) of Total
Intel Corp. $ 5,281 4%
International Business Machines Corp. 4,383 3%
Sun Microsystems, Inc. 3,819 3%
Molex, Inc. 3,369 2%
PepsiCo, Inc. 3,311 2%
Apple Computer, Inc. 3,300 2%
McDonald's Corp. 2,964 2%
Gateway, Inc. 2,951 2%
Kimberly-Clark Corp. 2,869 2%
Halliburton Co. 2,831 2%
Top Ten Equity Holdings Total: $35,077* 23%*
As of June 30, 2000, statement of assets. Subject to change.
*Market Values and Percents of Total are rounded; may not equal total.
top ten equity holdings
UMB Scout WorldWide Fund (UMBWX)
Market Percent
Value (000's) of Total
Canon, Inc. $ 8,942 3%
Alcatel S A 8,669 3%
Elan Corp. Ltd. 7,024 2%
Nortel Networks Corp. 6,602 2%
Siemens A.G. 6,160 2%
KAO Corp. 5,876 2%
Sony Corp. 5,772 2%
Nokia Corp. 5,695 2%
Takeda Chemical Industry 5,552 2%
Telecom Italia S.p.A. 5,475 2%
Top Ten Equity Holdings Total: $65,767* 22%*
As of June 30, 2000, statement of assets. Subject to change.
*Market Values and Percents of Total are rounded; may not equal total.
top ten equity holdings
UMB Scout WorldWide Select Fund (UWWSX)
Market Percent
Value (000's) of Total
Canon, Inc. $1,582 4%
Nokia Corp. 1,451 4%
Alcatel S A 1,244 3%
Elan Corp. Ltd. 855 2%
Nortel Networks Corp. 827 2%
Sony Corp. 819 2%
Siemens A.G. 812 2%
Ericsson (L.M.), Telephone Co. 696 2%
KAO Corp. 680 2%
Carlton Communications 676 2%
Top Ten Equity Holdings Total: $9,640* 27%*
As of June 30, 2000, statement of assets. Subject to change.
*Market Values and Percents of Total are rounded; may not equal total.
Chart - COUNTRY DIVERSIFICATION
UMB Scout WorldWide Fund (UMBWX)
Chart - COUNTRY DIVERSIFICATION
UMB Scout WorldWide Select Fund (UWWSX)
Chart - HISTORICAL PER-SHARE RECORD
UMB Scout WorldWide Fund (UMBWX)
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
12/31/99 23.77 0.45 0.12 26.09
06/30/00+ 23.47 0.03 0.35 26.17
*Does not assume any compounding of reinvested distributions.
Table shows calendar year distributions and net asset values; may differ
from fiscal year annual reports.
+Six-month only. Distributions typically occur in June and December.
Chart - HISTORICAL PER-SHARE RECORD
UMB Scout WorldWide Select Fund (UWWSX)
Income & Cumulative*
Net Short-Term Long-Term Value Per
Asset Gains Gains Share Plus
Value Distribution Distribution Distributions
12/31/99 $12.00 $ 0.08 $ - $12.08
06/30/00+ 11.90 0.06 - 12.04
*Does not assume any compounding of reinvested distributions.
Table shows calendar year distributions and net asset values; may differ
from fiscal year annual reports.
+Six-month only. Distributions typically occur in June and December.
FINANCIAL STATEMENTS JUNE 30, 2000
Statement of Net Assets
Market
Shares DESCRIPTION Value
WORLDWIDE PORTFOLIO
COMMON STOCKS (ADR's) - 85.8%
Australia - 3.6%
116,000 Amcor Ltd. $ 1,595,000
58,380 Broken Hill Proprietary Company Ltd. 1,386,525
800,000 Cable & Wireless Optus Ltd.1* 2,391,994
220,000 Coca-Cola Amatil Ltd. 858,594
298,000 Coca-Cola Amatil Ltd.1 581,487
100,180 Coles Myer Ltd. 3,030,445
56,000 Commonwealth Bank of Australia1 931,004
10,775,049
Austria - 1.2%
43,000 OMV A.G.1 3,751,002
Belgium - 1.0%
42,900 Solvay & Cie S.A., NPV1 2,899,238
Brazil - 3.3%
185,600 Aracruz Celulosa S.A. 3,584,400
140,000 Embratel Participacoes S.A.* 3,307,500
2,873 Tele Norte Leste Participacoes S.A.* 67,875
4,908 Tele Sudeste Celular* 149,694
24,540 Telebras Brasileiras-Telebras 2,383,448
24,540 Telecomunicacoes Brasileiras* 453,989
9,946,906
Canada - 8.1%
110,600 BCE, Inc. 2,633,663
174,700 Biochem Pharma, Inc.* 4,301,988
95,800 Canadian Pacific Ltd. 2,508,763
185,000 Imperial Oil Ltd. 4,509,375
69,200 Magna International, Inc., Class A 3,269,700
96,735 Nortel Networks Corp.* 6,602,164
50,000 Prudential Steel Ltd.1 732,281
24,557,934
Chile - 0.5%
52,500 Embotelladora Andina S.A. De Chile 616,875
40,700 Sociedad Quimica Minera De Chile 905,575
1,522,450
Denmark - 1.6%
57,800 Novo-Nordisk A.S. 4,884,100
Finland - 2.5%
114,050 Nokia Corp., Pfd. 5,695,372
39,700 Sonera Group PLC 1,826,200
7,521,572
France - 7.7%
130,358 Alcatel Alsthom 8,668,807
62,700 Aventis 4,549,669
47,540 Carrefour Supermarche S.A.1 3,262,944
40,200 Schlumberger Ltd. 2,999,925
49,135 Total Fina Elf S.A. 3,774,182
23,255,527
Germany - 5.2%
34,600 Dresdner Bank A.G. 1,439,457
15,100 Dresdner Bank A.G., 144A 628,202
55,000 Fresenius Medical Care 1,440,313
51,600 Henkel KGAA, Pfd.1 2,957,933
20,820 SAP A.G.1 3,081,523
40,800 Siemens A.G. 6,159,895
15,707,323
Hong Kong - 1.1%
728,100 CLP Holdings Ltd. 3,390,616
Hungary - 0.7%
64,000 Magyar Tavkozlesi Rt. 2,204,000
Ireland - 2.3%
145,000 Elan Corp. Ltd.* 7,023,438
Italy - 5.0%
61,952 Benetton Group S.p.A. 2,563,264
340,000 Luxottica Group S.p.A. 4,143,750
2,111,000 Parmalat Finanziaria S.p.A.1 2,990,888
39,800 Telecom Italia S.p.A. 5,474,987
15,172,889
Japan - 14.2%
177,500 Canon, Inc. 8,941,563
81,700 Fuji Photo Film Ltd. 3,462,038
33,500 Hitachi Ltd. 4,828,188
23,150 Ito Yokado Ltd. 1,433,853
191,900 KAO Corp.1 5,876,433
201,300 Minebea Ltd.1 2,530,400
61,200 Sony Corp. 5,771,925
84,400 Takeda Chemical Industries Ltd.1 5,551,949
48,600 Toyota Motor Corp. 4,528,912
42,925,261
Netherlands - 3.2%
131,489 Aegon N.V., Amern Reg Sh 4,684,296
60,400 Akzo Nobel N.V. 2,540,575
80,208 Koninklijke Ahold N.V. 2,351,097
9,575,968
New Zealand - 1.0%
106,200 Telecom Corp. 2,986,874
Norway - 1.4%
99,055 Norsk Hydro A.S. 4,166,500
Portugal - 1.4%
368,000 Portugal Telecom S.A. 4,140,000
Singapore - 0.8%
37,000 Flextronics International Ltd.* 2,541,438
Spain - 2.1%
181,000 Repsol S.A. 3,586,063
44,631 Telefonica de Espana S.A. 2,859,173
6,445,236
Sweden - 3.5%
103,900 Aktiebolaget Electrolux 3,272,850
230,000 Ericsson (L.M.), Telephone Company 4,600,000
138,100 Svenska Cellulosa1 2,637,299
10,510,149
Switzerland - 1.4%
6,938 ABB Ltd.1 833,051
17,050 Nestle S.A. 1,711,742
41,226 Novartis A.G. 1,649,040
4,193,833
United Kingdom - 11.5%
74,000 BP Amoco PLC 4,185,625
363,806 Bass Public Ltd. Co. 4,206,507
82,572 Cadbury Schweppes Ltd. 2,167,515
82,800 Carlton Communications PLC 5,382,000
62,243 Diageo PLC 2,213,517
114,900 Imperial Chemical Industries PLC 3,540,356
40,506 Reuters Group PLC 4,048,068
156,825 Royal Bank of Scotland Group PLC1 2,625,836
32,000 Smithkline Beecham PLC 2,086,000
60,178 Unilever PLC 1,511,972
69,700 Vodafone Airtouch PLC 2,888,194
34,855,590
United States - 1.5%
75,000 Agribrands International, Inc.* 3,145,312
16,000 Sprint Corp. 816,000
8,000 Sprint Corp. PCS* 476,000
4,437,312
TOTAL COMMON STOCKS (ADR's) (Cost $193,015,276) - 85.8% 259,390,205
FACE Market
AMOUNT DESCRIPTION Value
SHORT-TERM CORPORATE NOTES - 10.5%
$3,000,000 AT&T Company, 6.50%, due July 21, 2000 2,988,625
2,000,000 Becton Dickinson & Co, 6.45%, due July 7, 2000 1,997,492
2,500,000 Coca-Cola Company, 6.50%, due July 28, 2000 2,487,361
2,500,000 Coca-Cola Company, 6.54%, due August 15, 2000 2,479,108
2,000,000 Dun & Bradstreet Corp., 6.60%, due July 18, 2000 1,993,400
2,000,000 Eastman Kodak Co., 6.60%, due August 28, 2000 1,978,367
2,000,000 Gannett Co., Inc., 6.61%, due July 25, 2000 1,990,931
3,000,000 Hershey Foods Corp., 6.54%, due August 4, 2000 2,981,013
2,000,000 IBM Credit Corp., 6.47%, due July 11, 2000 1,996,046
2,500,000 Merck & Co., Inc., 6.63%, due July 13, 2000 2,494,015
3,000,000 Motorola, Inc., 6.54%, due August 23, 2000 2,970,570
3,000,000 SBC Communications, Inc., 6.53%, due July 10, 2000 2,994,558
2,500,000 Texaco, Inc., 6.61%, due July 14, 2000 2,493,667
TOTAL SHORT-TERM CORPORATE NOTES (Cost $31,845,153) - 10.5% 31,845,153
REPURCHASE AGREEMENT (Cost $11,575,000) - 3.8%
11,575,000 Northern Trust Co., 6.40%, due July 3, 2000
(Collateralized by U.S. Treasury Bonds,
11.875%, due November 15, 2003) 11,575,000
TOTAL INVESTMENTS (Cost $236,435,429) - 100.1% 302,810,358
Other assets less liabilities - (0.1%) (585,069)
TOTAL NET ASSETS - 100.0%
(equivalent to $23.47 per share; 20,000,000 shares
of $1.00 par value capital shares authorized;
12,875,100 shares outstanding) $302,225,289
For federal income tax purposes, the identified cost of investments owned
at June 30, 2000 was $236,435,429.
Net unrealized appreciation for federal income tax purposes was
$66,374,929, which is comprised of unrealized appreciation of $77,399,687
and unrealized depreciation of $11,024,758.
*Non-income producing security
ADR - American Depository Receipt
1Non ADR
FINANCIAL STATEMENTS JUNE 30, 2000
Statement of Net Assets
Market
Shares DESCRIPTION Value
WORLDWIDE SELECT PORTFOLIO
COMMON STOCKS (ADR's) - 96.3%
Australia - 4.0%
18,300 Amcor Ltd. $ 251,625
9,700 Broken Hill Proprietary Company Ltd. 230,375
80,000 Cable And Wireless Ltd.1* 239,199
23,600 Coca-Cola Amatil Ltd. 92,104
19,400 Coca-Cola Amatil Ltd.1 37,855
15,100 Coles Myer Ltd. 456,775
6,000 Commonwealth Bank of Australia1 99,750
1,407,683
Austria - 1.4%
5,500 OMV A.G.1 479,779
Belgium - 1.1%
6,000 Solvay & Cie S.A., NPV1 405,488
Brazil - 3.2%
24,000 Aracruz Celulosa S.A. 463,500
14,000 Embratel Participacoes S.A.* 330,750
269 Tele Norte Leste Participacoes S.A.* 6,354
460 Tele Sudeste Celular* 14,030
3,000 Telebras Brasileiras-Telebras 291,375
2,300 Telecomunicacoes* 42,550
1,148,559
Canada - 8.5%
17,000 BCE Inc. 404,811
19,500 Biochem Pharma Inc.* 480,188
11,000 Canadian Pacific Ltd. 288,063
24,100 Imperial Oil Ltd. 587,438
8,570 Magna International Inc., Class A 404,933
12,123 Nortel Networks Corp.* 827,400
2,900 Prudential Steel Ltd.1 42,470
3,035,303
Chile - 0.9%
8,000 Embotelladora Andina S.A. De Chile 94,000
10,000 Sociedad Quimica Minera De Chile 222,500
316,500
Denmark - 1.5%
6,450 Novo-Nordisk A.S. 545,025
Finland - 4.9%
29,050 Nokia Corp., Pfd. 1,450,684
6,200 Sonera Group PLC 285,200
1,735,884
France - 8.2%
18,700 Alcatel Alsthom 1,243,550
6,000 Aventis 435,375
5,860 Carrefour Supermarche S.A.1 402,206
4,900 Schlumberger Ltd. 365,663
6,200 Total Fina Elf S.A. 476,237
2,923,031
Germany - 5.7%
5,600 Dresdner Bank A.G. 232,976
1,400 Dresdner Bank A.G. 144A1 58,245
5,600 Fresenius Medical Care 146,650
6,000 Henkel Kgaa, Pfd1 343,946
4,000 SAP A.G. 187,750
1,740 SAP A.G.1 257,534
5,375 Siemens A.G.* 811,505
2,038,606
Hong Kong - 1.4%
108,300 CLP Holdings Ltd. 504,331
Hungary - 0.8%
7,900 Magyar Tavkozlesi Rt. 272,056
Ireland - 2.4%
17,650 Elan Corp. Ltd.* 854,922
Italy - 5.3%
7,900 Benetton Group S.p.A. 326,863
40,300 Luxottica Group S.p.A. 491,155
279,500 Parmalat Finanziaria S.p.A.1 395,999
4,800 Telecom Italia S.p.A. 660,300
1,874,317
Japan - 15.9%
31,400 Canon, Inc. 1,581,775
9,300 Fuji Photo Film Ltd. 394,088
4,000 Hitachi Ltd. 576,500
2,500 Ito Yokado Ltd. 154,844
22,200 KAO Corp.1 679,817
27,800 Minebea Ltd.1 349,454
8,680 Sony Corp. 818,633
9,500 Takeda Chemical Industries Ltd.1 624,923
4,900 Toyota Motor Corp. 456,618
5,636,652
Netherlands - 3.6%
17,810 Aegon N.V. 634,481
6,000 Akzo Nobel N.V. 252,375
12,400 Koninklijke Ahold N.V. 363,475
742 Unilever N.V. 31,907
1,282,238
New Zealand - 1.0%
11,400 Telecom Corp. 320,625
Norway - 1.7%
14,400 Norsk Hydro A.S.* 605,700
Portugal - 1.3%
41,900 Portugal Telecom S.A. 471,375
Singapore - 1.0%
5,300 Flextronics International Ltd.* 364,043
Spain - 2.4%
23,100 Repsol S.A. 457,669
6,360 Telefonica de Espana S.A.* 407,437
865,106
Sweden - 4.0%
11,850 Aktiebolaget Electrolux 373,275
34,800 Ericsson (L.M.) Telephone Company 696,000
18,600 Svenska Cellulosa1 355,205
1,424,480
Switzerland - 1.9%
3,800 Nestle S.A. 381,503
7,200 Novartis A.G. 288,000
669,503
United Kingdom - 12.7%
45,250 Bass Public Ltd. Co. 523,203
9,700 BP Amoco PLC 548,656
18,300 Cadbury Schweppes Ltd. 480,375
10,400 Carlton Communications PLC 676,000
7,200 Diageo PLC 256,050
15,100 Imperial Chemical Industries PLC 465,269
4,000 Reuters Group PLC 399,750
21,600 Royal Bank of Scotland Group PLC1 361,665
4,100 Smithkline Beecham PLC 267,269
4,400 Unilever PLC 110,550
9,300 Vodafone Airtouch PLC* 385,369
4,474,156
United States - 1.5%
9,300 Agribrands International Inc.* 390,019
3,100 Sprint Corp. 158,100
548,119
TOTAL Common stocks (ADR's) (Cost $32,211,939) - 96.3% 34,203,481
FACE Market
AMOUNT DESCRIPTION Value
REPURCHASE AGREEMENT (Cost $6,730,000) - 18.9%
$6,730,000Northern Trust Repo., 6.40%, due July 3, 2000
(Collateralized by U.S. Treasury Bonds,
11.875%, due November 15, 2003) 6,730,000
TOTAL INVESTMENTS (Cost $38,941,939) - 115.2% 40,933,481
Other assets less liabilities - (15.2%) (5,416,657)
TOTAL NET ASSETS - 100.0%
(equivalent to $11.90 per share; 10,000,000 shares
of $1.00 par value capital shares authorized;
2,983,657 shares outstanding) $35,516,824
For federal income tax purposes, the identified cost of investments owned
at June 30, 2000 was $38,942,242.
Net unrealized appreciation for federal income tax purposes was $1,991,239,
which is comprised of unrealized appreciation of $3,358,552 and unrealized
depreciation of $1,367,313.
*Non-income producing security
ADR - American Depository Receipt
1Non ADR
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS JUNE 30, 2000
Statements of Assets and Liabilities
WorldWide
WorldWide Select
ASSETS:
Investment securities, at market value
(identified cost $236,435,429 and
$38,941,939 respectively) $302,810,358 $ 40,933,481
Cash -
278,162
Dividends receivable 320,309 34,109
Receivable for capital shares sold 2,448,898 -
Total assets 305,579,565 41,245,752
LIABILITIES:
Disbursements in excess of demand deposit cash 706,672 -
Payable for investments purchased 2,647,604 5,728,928
Total liabilities 3,354,276 5,728,928
NET ASSETS $302,225,289 $ 35,516,824
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $232,691,173 $ 33,563,753
Accumulated undistributed income:
Net investment income 2,663,347 15,453
Net realized gain (loss) from investment and
foreign currency transactions 495,840 (53,924)
Net unrealized appreciation on investments
and translation of assets and liabilities
in foreign currencies 66,374,929 1,991,542
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $302,225,289 $ 35,516,824
Capital shares, $1.00 par value
Authorized 20,000,000 10,000,000
Outstanding 12,875,100 2,983,657
NET ASSET VALUE PER SHARE $ 23.47 $ 11.90
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS Year Ended June 30, 2000
Statements of Operations
WorldWide
WorldWide Select
INVESTMENT INCOME:
Income:
Dividends $ 3,536,397 $ 284,251
Interest 2,017,474 122,305
5,553,871 406,556
Expenses:
Management fees 2,235,686 145,971
Government fees 55,173 -
2,290,859 145,971
Net investment income 3,263,012 260,585
REALIZED and unrealized gain (LOSS) ON INVESTMENTS
and foreign currency:
Net realized gain (loss) from investment and
foreign currency transactions 7,510,135 (46,725)
Increase in net unrealized appreciation on
investments and translation of assets
and liabilities in foreign currencies 31,622,594 1,906,748
Net realized and unrealized gain on
investments and foreign currency 39,132,729 1,860,023
Net increase in net assets resulting from
operations $42,395,741 $ 2,120,608
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
WorldWide WorldWide
Year Ended Year Ended
June 30, 2000 June 30, 1999
</CAPTION>
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 3,263,012 $ 2,032,442
Net realized gain from investment
and foreign currency transactions 7,510,135 1,704,444
Increase in net unrealized appreciation
on investments and translation of assets
and liabilities in foreign currencies 31,622,594 12,313,756
Net increase in net assets resulting from operations 42,395,741 16,050,642
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (1,406,600) (1,687,760)
Net realized gain from investment and foreign currency
transactions (8,376,166) (91,395)
Decrease in net assets from distributions (9,782,766) (1,779,155)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 14,376,529 and 7,511,796 shares sold,
respectively 325,242,855 141,947,545
Net asset value of 389,744 and 62,507 shares issued
for reinvestment of distributions, respectively 8,916,787 1,233,449
334,159,642 143,180,994
Cost of 10,753,351 and 3,181,304 shares redeemed (245,192,984) (60,041,596)
Net increase in net assets from capital share
transactions 88,966,658 83,139,398
Net increase in net assets 121,579,633 97,410,885
NET ASSETS:
Beginning of year 180,645,656 83,234,771
End of year (including undistributed net investment
income of $2,663,347 and $456,766, respectively) $302,225,289 $180,645,656
Net investment income $ 2,111,057 $ 3,493,940
Net realized gain from investment transactions 16,284,971 15,649,630
Increase (decrease) in net unrealized
appreciation on investments (14,377,996) 4,475,877
Net increase in net assets resulting from operations 4,018,032 23,619,447
Net equalization included in the price
of shares issued and redeemed (52,253) (183,501)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income 2,227,967 (3,667,370)
In excess of net investment income - (78,521)
Net realized gain from investment transactions (18,265,897) (11,380,820)
Decrease in net assets from distributions (20,493,864) (15,126,711)
DECREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 837,599 and 1,609,570 shares
sold, respectively 16,420,440 30,716,658
Net asset value of 1,003,274 and 369,217 shares
issued for reinvestment of distributions,
respectively 18,587,862 7,133,312
35,008,302 37,849,970
Cost of 2,777,794 and 3,022,551 shares redeemed,
respectively (53,837,877) (58,614,795)
Net decrease in net assets from capital
share transactions (18,829,575) (20,764,825)
Net decrease in net assets (35,357,660) (12,455,590)
NET ASSETS:
Beginning of year 182,223,259 194,678,849
End of year (including undistributed net investment
income of $305,306 and ($78,521), respectively) $146,865,599 $182,223,259
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
WorldWide Select
WorldWide For the Period
Select May 17, 1999
Year Ended (Inception) to
June 30, 2000 June 30, 1999
</CAPTION>
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 260,585 $ 3,315
Net realized gain (loss) from investment
and foreign currency transactions (46,725) 2,197
Increase in net unrealized appreciation
on investments and translation of assets
and liabilities in foreign currencies 1,906,748 84,794
Net increase in net assets resulting from operations 2,120,608 90,306
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (245,374) -
Net realized gain from investment and foreign
currency transactions (6,896) -
Decrease in net assets from distributions (252,270) -
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 2,782,134 and 280,610 shares sold,
respectively 31,704,249 2,771,494
Net asset value of 15,459 shares issued for
reinvestment of distributions 178,096 -
31,882,345 2,771,494
Cost of 94,546 shares redeemed (1,095,659) -
Net increase in net assets from capital share
transactions 30,786,686 2,771,494
Net increase in net assets 32,655,024 2,861,800
NET ASSETS:
Beginning of year 2,861,800 -
End of year (including undistributed net investment
income of $15,453 and $3,315, respectively) $35,516,824 $ 2,861,800
</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$) at rates
provided by an independent pricing service on the following basis:
a. Market value of investment securities, other than assets and liabilities
- at the closing rate of exchange on June 30, 2000.
b. Purchases and sales of investment securities, income and expenses - at
the rate of exchange prevailing on the respective dates of such
transactions (or at the average rate if significant rate fluctuations have
not occurred).
c. The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
Reported net realized foreign exchange gains or losses arise from
sales and maturities of short-term securities, sales of FCs, currency gains
or losses realized between the trade and settlement dates on securities
transactions, the difference between the amounts of dividends, interest and
foreign withholding taxes recorded on the Fund's books, and the US$
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.
Net investment income and net realized gains differ for financial statement
and tax purposes primarily because of the deferral of wash sale losses and
post-October losses.
The character of distributions made during the year from net investment
income or net realized gains may differ from their ultimate
characterization for federal income tax purposes due to GAAP/tax
differences in the character of income recognition.
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, 2000 (excluding repurchase
agreements and short-term securities), were as follows:
Other than
U.S. Government U.S. Government
WorldWide Fund Securities Securities
Purchases $105,074,381 $ -
Proceeds from sales 19,253,678 -
WorldWide Select Fund
Purchases $ 37,306,280 $ -
Proceeds from sales 2,553,063 -
3. MANAGEMENT FEES - UMB Bank, n.a. is the Fund's manager and investment
advisor 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 1.10%. In January, 2000, by vote
of the shareholders, the Bank's management fees were increased to an annual
rate of 1.10% of net assets from .85 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.
5. SUBSEQUENT ACCOUNTING POLICY CHANGE - The Financial Accounting Standards
Board ("FASB") has issued Statement of Financial Accounting Standards No.
133, Accounting for Derivative Instruments and Hedging Activities ("SFAS
133"). This statement, as amended by SFAS No. 137, requires all derivatives
to be recorded on the balance sheet date at fair value and establishes
standard accounting methodologies for hedging activities. The standard will
result in the recognition of offsetting changes in value or cash flows of
both the hedge and the hedged item in net investment income in the same
period. The statement is effective for the Fund's fiscal year ending
June 30, 2001. Because the Fund does not normally hold derivative
instruments, the adoption of this statement is not expected to have a
material impact on the financial statements.
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share
outstanding throughout the period.
<TABLE>
<CAPTION>
2000 1999 1998 1997 1996
WorldWide
</CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 20.38 $ 18.62 $ 16.00 $ 12.90 $ 12.08
Income from investment operations:
Net investment income 0.28 0.26 0.29 0.26 0.14
Net realized and unrealized gains
on securities 3.64 1.75 2.87 3.12 0.86
Total from investment operations 3.92 2.01 3.16 3.38 1.00
Distributions from:
Net investment income (0.12) (0.23) (0.32) (0.21) (0.14)
Net realized gain on investment
transactions (0.71) (0.02) (0.22) (0.07) (0.04)
Total distributions (0.83) (0.25) (0.54) (0.28) (0.18)
Net asset value, end of period $ 23.47 $ 20.38 $ 18.62 $ 16.00 $ 12.90
Total return 19% 11% 20% 26% 17%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 302 $ 181 $ 83 $ 48 $ 31
Ratio of expenses to average net assets 0.91% 0.86% 0.87% 0.86% 0.85%
Ratio of net investment income to
average net assets 1.29% 1.69% 2.01% 1.93% 2.40%
Portfolio turnover rate 8% 8% 3% 18% 5%
Average commission rate $.0355 $.0509 $.0540 $.0315 $.0468
</TABLE>
See accompanying Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share
outstanding throughout the period.
2000 1999*
Worldwide select
Net asset value, beginning of period $10.20 $10.00
Income from investment operations:
Net investment income 0.10 0.01
Net realized and unrealized gains on securities 1.75 0.19
Total from investment operations 1.85 0.20
Distributions from:
Net investment income (0.10) -
Net realized gain on investment transactions (0.05) -
Total distributions (0.15) -
Net asset value, end of period $11.90 $10.20
Total return 18% 16%**
Ratios/Supplemental Data
Net assets, end of period (in millions) $ 36 $ 3
Ratio of expenses to average net assets 0.85% 0.85%
Ratio of net investment income to average net assets 1.53% 1.90%
Portfolio turnover rate 6% 6%
Average commission rate $.0477 $.0873
*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.
**The return is not annualized.
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., includes two series: WorldWide and
Worldwide Select, including the statements of net assets, as of June 30,
2000, 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, 2000, 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., includes two series: WorldWide and
Worldwide Select, as of June 30, 2000, 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 28, 2000
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
Balanced Fund
Bond Fund
Capital Preservation Fund
Equity Index Fund
Kansas Tax-Exempt Bond Fund*
Money Market Fund - Federal Portfolio
Money Market Fund - Prime Portfolio
Regional Fund
Stock Fund
Stock Select Fund
Tax-Free Money Market Fund
Technology Fund
WorldWide Fund
WorldWide Select Fund
*Available in Kansas and Missouri only.
Investment Advisors and Manager
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," "Scout" and the "Scout" design are registered
service marks of UMB Financial Corporation.
