Babson Growth Fund
Quarterly Report
March 31, 1995
MESSAGE
To Our Shareholders
While 1994 was a frustrating year for investors, U.S. financial markets got
off to a good start in the first quarter of 1995. Babson Growth Fund fully
participated in the market's recent rise. The Fund had an 8.7% total return
(price change and reinvested distributions) for the quarter ended March 31,
1995 and has returned 11.6% over the past 12 months, placing it in the top
third of all growth equity mutual funds (588 funds) as measured by Lipper
Analytical Services for these time periods. At quarter-end the net asset
value per share was $13.01.
The Fund's average annual compounded total returns for one, five and ten year
periods ended March 31, 1995 were 11.6%, 8.8% and 12.0%, 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.
Investment Results - Total Return
Periods Ended 3/31/95
3 Months 12 Months
BABSON GROWTH FUND 8.7% 11.6%
Lipper Growth Funds Average
(588 funds) 7.4% 8.8%
S&P 500 Index* 9.7% 15.5%
*unmanaged
We continue to find new opportunities for Babson Growth Fund, and made four
new investments in high quality, rapidly growing companies during the three
months ended March 31, 1995. The new investments are:
First Data Corp.: A provider of high quality, high volume information
processing and related services.
First Financial Management Corp.: A supplier of information services for
processing credit card transactions, healthcare claims, Western Union money
transfer services and data storage.
R.P. Scherer Corp.: An industry leader in advanced drug delivery technology,
including softgel capsule products used by most major pharmaceutical
manufacturers.
Viking Office Products Inc.: An international catalogue retailer of office
supplies, equipment and furniture.
Since the beginning of the year we eliminated our positions in General Motors
and Scott Paper. In our view, General Motors has failed to capitalize on the
recovery in the automobile cycle we're experiencing in the United States.
Scott Paper, on the other hand, has performed exceptionally well for the
Fund, benefiting from a turnaround in its core tissue paper business and
aggressive corporate restructuring by a new management team.
These transactions will contribute to our continued effort to enhance the
growth characteristics of the portfolio, while still maintaining an emphasis
on high quality companies trading at attractive relative valuations. We
appreciate your continuing interest in Babson Growth Fund.
Sincerely,
LARRY D. ARMEL
Larry D. Armel
President
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<TABLE>
<CAPTION>
HISTORICAL RECORD
Progress of the Fund since it was founded in 1960.
NET ASSET
NET ASSET VALUE PER
*LONG-TERM *SHORT-TERM VALUE PER SHARE WITH
FISCAL NET *ORDINARY CAPITAL CAPITAL SHARE WITH DIVIDENDS and
YEAR TOTAL ASSET INCOME GAINS GAINS CAPITAL GAINS CAPITAL GAINS
ENDED NET VALUE DIVIDENDS DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS
JUNE 30 ASSETS PER SHARE PER SHARE PER SHARE PER SHARE REINVESTED REINVESTED
<S> <C> <C> <C> <C> <C> <C>
1960
(Inception <C>
April 30) $ 128,066 $ 4.87 $ -0- $ -0- $ -0- $ 4.87 $ 4.87
1965 5,176,041 6.36 0.100 0.07 -0- 6.52 6.97
1970 28,729,379 7.16 0.170 0.02 -0- 7.63 8.87
1971 54,672,327 9.60 0.190 -0- -0- 10.23 12.15
1972 77,860,344 10.90 0.180 -0- -0- 11.62 14.05
1973 106,017,401 10.66 0.160 0.09 -0- 11.46 14.05
1974 143,011,492 9.34 0.200 -0- -0- 10.04 12.54
1975 207,734,395 10.22 0.220 -0- -0- 10.99 14.09
1976 224,727,885 10.00 0.250 -0- -0- 10.75 14.16
1977 217,273,868 9.27 0.240 -0- -0- 9.97 13.46
1978 217,114,139 9.40 0.280 -0- -0- 10.11 14.06
1979 218,528,345 10.20 0.320 -0- -0- 10.97 15.76
1980 234,348,577 11.25 0.390 -0- -0- 12.08 18.01
1981 281,980,936 12.74 0.410 -0- -0- 13.68 21.04
1982 205,749,921 9.67 0.440 0.79 -0- 11.24 17.97
1983 249,201,722 14.40 0.380 0.19 0.04 16.96 27.97
1984 208,290,661 10.85 0.380 1.615 -0- 14.68 24.91
1985 215,374,722 13.40 0.4025 1.6285 0.2225 18.14 31.36
1986 253,780,848 13.62 0.3525 1.3725 -0- 22.89 42.37
1987 288,727,782 16.25 0.305 1.29 0.005 28.45 53.43
1988 237,465,629 11.66 0.2925 2.3425 -0- 26.09 50.10
1989 266,125,877 11.87 0.3085 1.20 0.0965 29.38 58.38
1990 259,076,870 11.18 0.2725 1.125 0.01 30.36 62.04
1991 235,812,697 11.05 0.245 0.18 -0- 30.55 63.92
1992 232,400,994 11.70 0.20 0.025 0.011 32.45 69.10
1993 245,201,417 12.30 0.195 0.865 -0- 36.49 78.97
1994 227,724,061 11.78 0.20 0.7931 -0- 37.28 81.97
** 1995 236,359,177 13.01 -0- -0- -0- 41.29 91.55
</TABLE>
* Includes dividends and distributions applicable to the fiscal
year which may have been paid soon after the fiscal year-end.
** Nine months ended March 31, 1995.
STATEMENT OF NET ASSETS
March 31, 1995
SHARES COMPANY MARKET VALUE
COMMON STOCKS - 98.80%
BASIC MATERIALS - 6.87%
50,000 Air Products & Chemicals, Inc. $ 2,606,250
80,000 duPont (E.I.) deNemours & Co. 4,840,000
70,000 Louisiana Pacific Corp. 1,933,750
150,000 Morton International, Inc. 4,350,000
65,000 Sigma-Aldrich Corp. 2,518,750
16,248,750
CAPITAL GOODS - 12.63%
125,000 Boeing Co. 6,734,375
110,000 General Electric Co. 5,953,750
45,000 Grainger (W.W.), Inc. 2,835,000
200,000 Pall Corp. 4,200,000
150,000 Sherwin-Williams Co. 5,081,250
100,000 Sundstrand Corp. 5,037,500
29,841,875
CONSUMER CYCLICAL - 21.21%
100,000 American Greetings Corp. Cl. A 2,987,500
60,000 Capital Cities/ABC, Inc. 5,295,000
150,000 Circuit City Stores, Inc. 3,956,250
90,000 Dillard Department Stores, Inc. Cl. A 2,486,250
112,500 Genuine Parts Co. 4,485,938
111,000 Heilig-Meyers Co. 2,428,125
150,000 King World Productions, Inc. 5,906,250
140,000 Mattel, Inc. 3,447,500
60,000 May Department Stores Co. 2,220,000
60,000 Reader's Digest Association Inc., Cl. A 2,887,500
150,000 Reebok International Ltd. 5,343,750
125,000 Service Corp International 3,500,000
35,000 Viking Office Products Inc. 1,085,000
75,000 Whirlpool Corp. 4,106,250
50,135,313
CONSUMER STAPLES - 20.84%
130,000 Abbott Laboratories 4,631,250
75,000 American Home Products Corp. 5,343,750
100,000 Anheuser-Busch Cos., Inc. 5,862,500
75,000 Bausch & Lomb, Inc. 2,681,250
65,000 CPC International, Inc. 3,518,125
93,000 DENTSPLY International, Inc. 3,231,750
40,000 Gillette Co. 3,265,000
24,000 Healthsource, Inc. 1,137,000
100,000 Johnson & Johnson 5,950,000
100,000 PepsiCo, Inc. 3,900,000
80,000 Philip Morris Cos., Inc. 5,220,000
35,000 Scherer (R.P.) Corp. 1,758,750
33,000 U.S. HealthCare, Inc. 1,460,250
28,000 United Healthcare 1,309,000
49,268,625
ENERGY - 8.99%
80,000 Amerada Hess Corp. 3,950,000
80,000 Burlington Resources Inc. 3,260,000
160,000 Coastal Corp. 4,600,000
50,000 Mobil Corp. 4,631,250
40,000 Royal Dutch Petroleum Co. 4,800,000
21,241,250
FINANCIAL - 15.04%
50,000 American International Group, Inc. 5,212,500
103,125 Banc One Corp. 2,939,062
62,000 Federal Home Loan Mortgage Corp. 3,751,000
55,000 First Data Corp. 2,853,125
6,700 First Financial Management Corp. 484,075
50,000 General Re Corp. 6,600,000
135,562 KeyCorp New 3,829,627
120,000 Mellon Bank Corp. 4,890,000
100,000 St. Paul Cos., Inc. 5,000,000
35,559,389
TECHNOLOGY - 13.22%
100,000 Automatic Data Processing, Inc. 6,300,000
150,000 Computer Sciences Corp. 7,406,250
100,000 Minnesota Mining & Manufacturing Co. 5,812,500
111,000 Seagate Technology 3,094,125
115,000 Vodafone PLC ADR 3,809,375
150,000 Wallace Computer Services, Inc. 4,818,750
31,241,000
TOTAL COMMON STOCKS - 98.80% 233,536,202
FACE AMOUNT DESCRIPTION MARKET VALUE
REPURCHASE AGREEMENT - 0.85%
$ 2,000,000 UMB Bank, n.a.,
5.71%, due April 3, 1995
(Collateralized by U.S.
Treasury Notes, 10.50%,
due August 15, 1995) 2,000,000
TOTAL INVESTMENTS - 99.65% $ 235,536,202
Other assets less liabilities - 0.35% 822,975
TOTAL NET ASSETS - 100.00%
(equivalent to $13.01 per share;
100,000,000 shares of $1.00 par
value capital shares authorized;
18,170,163 shares outstanding) $ 236,359,177
This report has been prepared for the information of the Shareholders of
David L. Babson Growth 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 Babson Funds
are offered only by the Prospectus, a copy of which may be obtained from
Jones & Babson, Inc.
BASIS OF DETERMINING MARKET VALUE. Each investment is valued at the latest
sales price on March 31, 1995, as reported by the principal exchange on which
the issue is traded. If no sale is reported, or if unlisted, the average of
the latest bid and asked price is used.
