Statement of Net Assets
December 31, 1995 (unaudited)
SHARES COMPANY Market Value
COMMON STOCKS - 41.31%
BASIC MATERIALS - 7.92%
50 Cyprus Amax Minerals Co. $ 1,306
100 Huntco, Inc. Cl. A 1,537
25 International Paper Co. 947
50 Weyerhaeuser Co. 2,162
100 Worthington Industries, Inc. 2,081
8,033
CAPITAL GOODS - 2.67%
50 Browning-Ferris Industries, Inc. 1,475
75 Giddings & Lewis, Inc. 1,237
2,712
CONSUMER CYCLICAL - 11.65%
75 Bassett Furniture Industries, Inc. 1,744
50 Dillard Department Stores, Inc. Cl. A 1,425
100 Limited (The), Inc. 1,737
300 O'Sullivan Industries Holdings, Inc. 1,987
25 Penney (J.C.) Co., Inc. 1,191
200 Stride Rite Corp. 1,500
100 Wal-Mart Stores, Inc. 2,237
11,821
CONSUMER STAPLES - 8.64%
100 Archer-Daniels-Midland Co. 1,800
100 Exabyte Corp. 1,463
100 Lance, Inc. 1,638
75 Rubbermaid, Inc. 1,913
200 VICORP Restaurants, Inc. 1,950
8,764
ENERGY - 4.62%
25 Murphy Oil Corp. 1,038
50 Phillips Petroleum Co. 1,706
100 USX-Marathon Group 1,950
4,694
MISCELLANEOUS - 1.49%
100 ACX Technologies, Inc. 1,513
TECHNOLOGY - 2.90%
100 Brinker International, Inc. 1,513
100 Novell, Inc. 1,425
2,938
UTILITIES - 1.42%
150 Niagara Mohawk Power Corp. 1,444
TOTAL COMMON STOCKS - 41.31% 41,919
COMMON STOCKS (ADR'S) - 3.83%
FRANCE
100 Alcatel Alsthom 1,750
100 Rhone-Poulenc S.A. 2,138
TOTAL COMMON STOCKS (ADR'S) - 3.83% 3,888
GOVERNMENT SPONSORED ENTERPRISE - 4.99%
$ 5,000 Federal National Mortgage Association Discount Notes,
6.05%, due November 10, 1997 5,063
U.S. GOVERNMENT SECURITIES - 24.70%
5,000 U.S. Treasury Notes, 4.75%, due February 15, 1997 4,970
5,000 U.S. Treasury Notes, 6.125%, due May 31, 1997 5,061
5,000 U.S. Treasury Notes, 5.625%, due August 31, 1997 5,032
5,000 U.S. Treasury Notes, 5.375%, due November 30, 1997 5,016
5,000 U.S. Treasury Notes, 5.125%, due February 28, 1998 4,991
25,070
REPURCHASE AGREEMENT - 19.71%
20,000 Northern Trust Co., 5.10%, due January 2, 1996
(Collateralized by U.S. Treasury Notes,
7.50%, due February 29, 1996) 20,000
TOTAL INVESTMENTS - 94.54% $ 95,940
Other assets less liabilities - 5.46% 5,536
TOTAL NET ASSETS - 100.00%
(equivalent to $10.03 per share;
10,000,000 shares of $1.00 par value
capital shares authorized;
10,122 shares outstanding) $ 101,476
ADR- American Depository Receipt
See accompanying Notes to Financial Statements.
<PAGE>
Statement of Assets and Liabilities
December 31, 1995 (unaudited)
ASSETS:
Investment securities, at market value
(identified cost $95,681) $ 95,940
Cash 5,169
Dividends receivable 2
Interest receivable 365
Total assets 101,476
NET ASSETS $ 101,476
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 101,221
Accumulated undistributed income:
Undistributed net investment income (4)
Accumulated net realized gain on investment transactions 0
Net unrealized appreciation in value of investments 259
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 101,476
Capital shares, $1.00 par value
Authorized 10,000,000
Outstanding 10,122
NET ASSET VALUE PER SHARE $ 10.03
<PAGE>
Statement of Operations
Six Months Ended December 31, 1995 (unaudited)
INVESTMENT INCOME:
Income:
Dividends $ 2
Interest 1,273
1,275
Expenses:
Management fees (Note 3) 59
Registration fees and other expenses 0
59
Net investment income 1,216
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (Note 1):
Realized gain from investment transactions
(excluding commercial paper and repurchase
agreements):
Proceeds from sales of investments 0
Cost of investments sold 0
Net realized gain from investment transactions 0
Unrealized appreciation on investments:
Beginning of period 0
End of period 259
Increase in net unrealized appreciation on investments 259
Net gain on investments 259
Increase in net assets resulting from operations $ 1,475
<PAGE>
Statements of Changes in Net Assets
Six Months Ended
December 31, 1995
(unaudited)
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 1,216
Net realized gain from investment transactions 0
Increase in net unrealized appreciation on investments 259
Net increase in net assets resulting from operations 1,475
DISTRIBUTIONS TO SHAREHOLDERS FROM:*
Net investment income (1,220)
Net realized gain from investment transactions 0
Total distributions to shareholders (1,220)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from 10,000 shares sold 100,000
Net asset value of 122 shares issued for
reinvestment of distributions 1,221
101,221
Cost of 0 shares redeemed 0
Net increase from capital share transactions 101,221
Total increase in net assets 101,476
NET ASSETS:
Beginning of period 0
End of period (including undistributed net investment
income of ($4) $ 101,476
Distributions to shareholders:
Income dividends per share $ .122
Capital gains distribution per share $ -
<PAGE>
Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES - The Fund is registered under the
Investment CompanyAct of 1940, as amended, as a diversified, open-end
management investment company. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of
its financial statements.
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 reported
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.
Federal and State Taxes - The Fund's policy is to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its
shareholders. Therefore, no provision for federal or state tax is required.
Equalization - The Fund uses the accounting practice known as equalization,
by which a portion of the proceeds from sales and costs of redemption of
capital shares, equivalent on a per share basis to the amount of undistributed
net investment income on the date of the transactions, is credited or charged
to undistributed income. As a result, undistributed net investment income
per share is unaffected by sales or redemptions of capital shares.
2. PURCHASES AND SALES OF SECURITIES - The aggregate amounts of security
transactions during the period ended December 31, 1995 (excluding commercial
paper and repurchase agreements), were as follows:
Purchases $ 75,684
Proceeds from sales -
3. MANAGEMENT FEES - Management fees, which include all normal expenses of
the Fund other than taxes, fees and other charges of governmental agencies
for qualifying the Fund's shares for sale, special legal fees, interest and
brokerage commissions, are paid to Jones & Babson, Inc., an affiliated
company. These 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
This report has been prepared for the information os the Shareholders of Scout
Balanced 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.
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