UNITED
INTERNATIONAL
GROWTH FUND,
INC.
SEMIANNUAL
REPORT
------------------------------------------
For the six months ended December 31, 1994
<PAGE>
This report is submitted for the general information of the shareholders of
United International Growth Fund, Inc. It is not authorized for distribution to
prospective investors in the Fund unless accompanied with or preceded by the
United International Growth Fund, Inc. current prospectus.
<PAGE>
PRESIDENT'S LETTER
DECEMBER 31, 1994
Dear Shareholder:
As President of your Fund, I would like to take this opportunity to share
my thoughts on a subject that I believe is very important to all of us; the need
for tax incentives that will help Americans take personal responsibility for
their futures.
Voters all across America sent two clear messages in the elections held in
November 1994. They want their taxes reduced and they want their concern for
financial security addressed without adding new bureaucracies or government
programs. One of the methods to do this is to expand the availability of tax
incentives for individuals to invest in Individual Retirement Accounts. This
could be done in several ways such as:
restoring the universal availability of fully tax-deductible Individual
Retirement Accounts,
allowing non-working spouses to make a full contribution of $2,000 to an
Individual Retirement Account instead of only $250 as currently allowed,
eliminating the taxation on the distribution of earnings from Individual
Retirement Accounts.
All of us recognize that future generations will need to supplement social
security benefits by private savings in order to provide an adequate level of
retirement income. Expanding the benefits of IRA's provides tax incentives to
encourage savings which allows all individuals the opportunity to provide
financial security for themselves and their families. Encouraging savings
through tax incentives has additional indirect benefits. Americans' personal
savings rate has fallen from 8% in the 1960's to just 2% of disposable income
today. Expanding the benefits of IRA's will help reverse this trend, will
increase the amount of U.S. capital available for investment and should make the
U.S. less dependent on capital from foreign sources.
Changes to our current IRA laws, such as the ones I mentioned above, are
being discussed in Congress. I urge you to write to your Members of Congress
and to the President to tell them that you support expanded IRA legislation that
provides incentives and opportunities for all Americans to improve their
financial well being.
Finally, I appreciate your continued confidence in our products and
services.
Respectfully,
Keith A. Tucker
President
<PAGE>
SHAREHOLDER SUMMARY
- -----------------------------------------------------------------
UNITED INTERNATIONAL GROWTH FUND, INC.
PORTFOLIO STRATEGY:
Normally at least 80% in OBJECTIVE: Long-term appreciation
foreign securities. Not of capital with current
more than 75% in securities income as a secondary
in any one country. consideration.
Maximum of 15% in currency STRATEGY: Invests in securities
exchange contracts (common stocks and/or
debt securities) issued
Cash Reserves by companies or
governments of any
nation.
The use of cash reserves (often invested
in money market securities) for defensive
purposes is a strategy that may be
utilized by the International Growth Fund
from time to time.
Moving into cash reserve positions at
times thought to be near a major stock
market peak allows the Fund the
opportunity to capture profits and
attempts to cushion the impact of market
declines. The added flexibility provided
by our CASH RESERVES STRATEGY has from
time to time been an important element in
our past success and, when deemed
appropriate, may be used in the
management of the portfolio in the
future.
FOUNDED: 1970
SCHEDULED DIVIDEND FREQUENCY: SEMIANNUALLY (June and
December)
<PAGE>
PERFORMANCE SUMMARY
PER SHARE DATA
For the Six Months Ended December 31, 1994
------------------------------------------
DIVIDEND PAID $0.02
=====
CAPITAL GAINS DISTRIBUTION $0.93
=====
NET ASSET VALUE ON
12/31/94 $8.24 adjusted to: $9.17(A)
6/30/94 $8.98
-----
CHANGE PER SHARE $0.19
=====
(A)This number includes the capital gains distribution of $0.93 paid in December
1994 added to the actual net asset value on December 31, 1994.
Past performance is not necessarily indicative of future results.
TOTAL RETURN HISTORY
Average Annual Total Return
---------------------------
With Without
Period Sales Load* Sales Load**
- ------ ----------- ------------
1-year period ended 12-31-94 -4.05% 1.81%
5-year period ended 12-31-94 7.40% 8.68%
10-year period ended 12-31-94 14.16% 14.84%
*Performance data quoted represents past performance and is based on deduction
of 5.75% sales load on the initial purchase in each of the three periods.
**Performance data quoted in this column represents past performance without
taking into account the sales load deducted on an initial purchase.
Investment return and principal value will fluctuate and an investor's shares,
when redeemed, may be worth more or less than their original cost.
<PAGE>
PORTFOLIO HIGHLIGHTS
On December 31, 1994, United International Growth Fund, Inc. had net assets
totaling $639,053,792 invested in a diversified portfolio of:
92.86% Common Stocks and Rights
2.27% Preferred Stocks
4.87% Cash and Cash Equivalents
As a shareholder of United International Growth Fund, Inc., for every $100 you
had invested on December 31, 1994, your Fund owned $4.87 in cash and cash
equivalents; the remainder was invested as follows:
Basic Techno- Public
IndustriesConsumer logicalFinancialUtilities Total
Sweden $10.33 $0.34 $1.53 $2.81 $15.01
Finland 6.24 7.54 .13 13.91
Japan 8.64 .61 .55 9.80
United Kingdom2.26 6.90 9.16
Germany 5.38 1.49 $1.23 8.10
Mexico 4.27 .11 2.57 .89 7.84
France 2.34 2.33 .86 1.97 7.50
Spain 2.91 1.36 4.27
Norway 3.15 .40 .29 3.84
Hong Kong 3.42 .12 3.54
Australia .35 .34 1.56 2.25
Thailand .36 1.62 .21 2.19
Other 4.78 1.36 .64 .49 .45 7.72
Total $54.43 $16.98 $13.90 $8.14 $1.68 $95.13
- -----------------------------------------------------------------
These STOCK CATEGORIES are provided as a reference only. Not all categories or
subcategories will be represented in a portfolio at all times. Refer to the
following pages for a more detailed portfolio listing.
BASIC INDUSTRIES
Airlines
Automotive
Building
Chemicals Major
Electrical Equipment
Engineering and Construction
Machinery
Manufacturers
Metals and Mining
Multi-Industry
Paper
Precious Metals
Railroad Equipment
Railroads
Shipping
Steel
Tire and Rubber
Trucking
CONSUMER
Beverages
Consumer Electronics and Appliances
Food and Related
Hospital Management
Household Products
Leisure Time
Packaging and Containers
Publishing and Advertising
Retailing
Services, Consumer and Business
Textiles and Apparel
Tobacco
ENERGY AND ENERGY-RELATED
Canadian Oil
Coal
Domestic Oil
International Oil
Oil Services
Propane
FINANCIAL
Banks and Savings and Loans
Financial
Insurance
PUBLIC UTILITIES
Electric
Gas
Pipelines
TECHNOLOGICAL
Aerospace
Biotechnology and Medical Services
Chemicals Specialty and Miscellaneous Technology
Computers and Office Equipment
Drugs and Hospital Supply
Electronics
Telecommunications
<PAGE>
Table I: Portfolio Diversification by Nation and Industry
December 31, 1994 market value as percent of total net assets
- ---------------------------------------------------------------------------
United
Sweden Finland Japan Kingdom GermanyMexicoFrance
- ---------------------------------------------------------------------------
Building 1.37% 2.96% .47% .75% 1.80% 1.60%
- ---------------------------------------------------------------------------
Telecommunications 7.54 .55% 2.57
- ---------------------------------------------------------------------------
Multi-Industry 3.71 .03 .12 1.16 1.60
- ---------------------------------------------------------------------------
Retailing 3.97 1.49 .11 1.36
- ---------------------------------------------------------------------------
Machinery 1.75 3.33
- ---------------------------------------------------------------------------
Banks and
Savings and Loans 1.88 .59 1.09
- ---------------------------------------------------------------------------
Automotive 3.38 .61 .74
- ---------------------------------------------------------------------------
Engineering and
Construction .73 .63 1.30 .54
- ---------------------------------------------------------------------------
Electrical Equipment 3.70
- ---------------------------------------------------------------------------
Steel .34 2.53 .33
- ---------------------------------------------------------------------------
Food and Related .70
- ---------------------------------------------------------------------------
Insurance .93 .13 .88
- ---------------------------------------------------------------------------
Packaging and
Containers 1.25
- ---------------------------------------------------------------------------
Airlines
- ---------------------------------------------------------------------------
Public Utilities -
Electric 1.23
- ---------------------------------------------------------------------------
Leisure Time .44 .97
- ---------------------------------------------------------------------------
Paper 1.50
- ---------------------------------------------------------------------------
Publishing and
Advertising .05
- ---------------------------------------------------------------------------
Drugs and
Hospital Supply 1.12
- ---------------------------------------------------------------------------
Chemicals Major 1.15
- ---------------------------------------------------------------------------
Metals and Mining
- ---------------------------------------------------------------------------
Chemicals Specialty
and Miscellaneous
Technology .86
- ---------------------------------------------------------------------------
<PAGE>
United
Sweden Finland Japan Kingdom GermanyMexicoFrance
- ---------------------------------------------------------------------------
Trucking .80
- ---------------------------------------------------------------------------
Household Products .29 .40
- ---------------------------------------------------------------------------
Tire and Rubber
- ---------------------------------------------------------------------------
Shipping .53
- ---------------------------------------------------------------------------
Services, Consumer
and Business .21 .29
- ---------------------------------------------------------------------------
Electronics .41
- ---------------------------------------------------------------------------
Financial .30
- ---------------------------------------------------------------------------
Textiles and Apparel
- ---------------------------------------------------------------------------
Hospital Management .25
- ---------------------------------------------------------------------------
Computers and
Office Equipment
- ---------------------------------------------------------------------------
Total 15.01% 13.91% 9.80% 9.16% 8.10% 7.84% 7.50%
- ---------------------------------------------------------------------------
<PAGE>
Table I: Portfolio Diversification by Nation and Industry
December 31, 1994, market value as percent of total net assets
- ---------------------------------------------------------------------------
Hong Aus- Thai- Switz-
Spain Norway Kong tralia landerland
- ---------------------------------------------------------------------------
Building 1.14% .89% .25% .64%
- ---------------------------------------------------------------------------
Telecommunications
- ---------------------------------------------------------------------------
Multi-Industry .51 2.21 .35%
- ---------------------------------------------------------------------------
Retailing .67 .14%
- ---------------------------------------------------------------------------
Machinery .42
- ---------------------------------------------------------------------------
Banks and
Savings and Loans .29 1.56 .38
- ---------------------------------------------------------------------------
Automotive .11
- ---------------------------------------------------------------------------
Engineering and
Construction 1.26
- ---------------------------------------------------------------------------
Electrical Equipment .32
- ---------------------------------------------------------------------------
Steel
- ---------------------------------------------------------------------------
Food and Related .14 .91 .21
- ---------------------------------------------------------------------------
Insurance
- ---------------------------------------------------------------------------
Packaging and
Containers .55 .12
- ---------------------------------------------------------------------------
Airlines 1.72
- ---------------------------------------------------------------------------
Public Utilities -
Electric
- ---------------------------------------------------------------------------
Leisure Time .26
- ---------------------------------------------------------------------------
Paper
- ---------------------------------------------------------------------------
Publishing and
Advertising .34 .71
- ---------------------------------------------------------------------------
Drugs and
Hospital Supply
- ---------------------------------------------------------------------------
Chemicals Major
- ---------------------------------------------------------------------------
Metals and Mining 1.01
- ---------------------------------------------------------------------------
Chemicals Specialty
and Miscellaneous
Technology
- ---------------------------------------------------------------------------
<PAGE>
Hong Aus- Thai- Switz-
Spain Norway Kong tralia landerland
- ---------------------------------------------------------------------------
Trucking
- ---------------------------------------------------------------------------
Household Products
- ---------------------------------------------------------------------------
Tire and Rubber .61
- ---------------------------------------------------------------------------
Shipping
- ---------------------------------------------------------------------------
Services, Consumer
and Business
- ---------------------------------------------------------------------------
Electronics
- ---------------------------------------------------------------------------
Financial
- ---------------------------------------------------------------------------
Textiles and Apparel
- ---------------------------------------------------------------------------
Hospital Management
- ---------------------------------------------------------------------------
Computers and
Office Equipment .21
- ---------------------------------------------------------------------------
Total 4.27% 3.84% 3.54% 2.25% 2.19% 1.84%
- ---------------------------------------------------------------------------
<PAGE>
Table I: Portfolio Diversification by Nation and Industry
December 31, 1994, market value as percent of total net assets
- ---------------------------------------------------------------------------
Argen-
Denmark Brazil tina Italy China Canada
- ---------------------------------------------------------------------------
Building 1.55% .54%
- ---------------------------------------------------------------------------
Telecommunications .36%
- ---------------------------------------------------------------------------
Multi-Industry .08
- --------------------------------------------------------------------------
Retailing
- ---------------------------------------------------------------------------
Machinery .79
- ---------------------------------------------------------------------------
Banks and
Savings and Loans .11%
- ---------------------------------------------------------------------------
Automotive .26
- ---------------------------------------------------------------------------
Engineering and
Construction
- ---------------------------------------------------------------------------
Electrical Equipment
- ---------------------------------------------------------------------------
Steel
- ---------------------------------------------------------------------------
Food and Related .26 .21
- ---------------------------------------------------------------------------
Insurance
- ---------------------------------------------------------------------------
Packaging and
Containers
- ---------------------------------------------------------------------------
Airlines
- ---------------------------------------------------------------------------
Public Utilities -
Electric .45%
- ---------------------------------------------------------------------------
Leisure Time
- ---------------------------------------------------------------------------
Paper
- ---------------------------------------------------------------------------
Publishing and
Advertising .38
- ---------------------------------------------------------------------------
Drugs and
Hospital Supply
- ---------------------------------------------------------------------------
Chemicals Major
- ---------------------------------------------------------------------------
Metals and Mining
- ---------------------------------------------------------------------------
Chemicals Specialty
and Miscellaneous
Technology
- ---------------------------------------------------------------------------
<PAGE>
Argen-
Denmark Brazil tina Italy China Canada
- ---------------------------------------------------------------------------
Trucking
- ---------------------------------------------------------------------------
Household Products
- ---------------------------------------------------------------------------
Tire and Rubber
- ---------------------------------------------------------------------------
Shipping
- ---------------------------------------------------------------------------
Services, Consumer
and Business
- ---------------------------------------------------------------------------
Electronics
- ---------------------------------------------------------------------------
Financial
- ---------------------------------------------------------------------------
Textiles and Apparel .30%
- ---------------------------------------------------------------------------
Hospital Management
- ---------------------------------------------------------------------------
Computers and
Office Equipment
- ---------------------------------------------------------------------------
Total 1.55% 1.41% 1.09% .49% .45% .30%
- ---------------------------------------------------------------------------
<PAGE>
Table I: Portfolio Diversification by Nation and Industry
December 31, 1994, market value as percent of total net assets
- ---------------------------------------------------------------------------
Singa-
Chile pore Turkey Total
- ------------------------------------------------------------
Building 13.96%
- ------------------------------------------------------------
Telecommunications.08% 11.10
- ------------------------------------------------------------
Multi-Industry 9.77
- ------------------------------------------------------------
Retailing 7.74
- ------------------------------------------------------------
Machinery 6.29
- ------------------------------------------------------------
Banks and
Savings and Loans 5.90
- ------------------------------------------------------------
Automotive .15% 5.25
- ------------------------------------------------------------
Engineering and
Construction .16% 4.62
- ------------------------------------------------------------
Electrical Equipment 4.02
- ------------------------------------------------------------
Steel 3.20
- ------------------------------------------------------------
Food and Related 2.43
- ------------------------------------------------------------
Insurance 1.94
- ------------------------------------------------------------
Packaging and
Containers 1.92
- ------------------------------------------------------------
Airlines 1.72
- ------------------------------------------------------------
Public Utilities -
Electric 1.68
- ------------------------------------------------------------
Leisure Time 1.67
- ------------------------------------------------------------
Paper 1.50
- ------------------------------------------------------------
Publishing and
Advertising 1.48
- ------------------------------------------------------------
Drugs and
Hospital Supply .20 1.32
- ------------------------------------------------------------
Chemicals Major 1.15
- ------------------------------------------------------------
Metals and Mining 1.01
- ------------------------------------------------------------
Chemicals Specialty
and Miscellaneous
Technology .86
- ------------------------------------------------------------
<PAGE>
Singa-
Chile pore Turkey Total
- ------------------------------------------------------------
Trucking .80
- ------------------------------------------------------------
Household Products .69
- ------------------------------------------------------------
Tire and Rubber .61
- ------------------------------------------------------------
Shipping .53
- ------------------------------------------------------------
Services, Consumer
and Business .50
- ------------------------------------------------------------
Electronics .41
- ------------------------------------------------------------
Financial .30
- ------------------------------------------------------------
Textiles and Apparel .30
- ------------------------------------------------------------
Hospital Management .25
- ------------------------------------------------------------
Computers and
Office Equipment .21
- ------------------------------------------------------------
Total .28% .16% .15% 95.13%
- ------------------------------------------------------------
<PAGE>
THE INVESTMENTS OF
UNITED INTERNATIONAL GROWTH FUND, INC.
DECEMBER 31, 1994
Shares Value
COMMON STOCKS AND RIGHTS
Argentina - 1.09%
Ciadea, S.A. ........................... 194,022 $ 1,697,693
Colorin S.A., Series B* ................ 1,002,652 751,989
Compania Naviera Perez Compana S.A.,
Class B ............................... 120,000 494,400
Corcemar S.A., Series B1* .............. 407,982 2,692,681
Molinos Rio de la Plata S.A.* .......... 241,501 1,341,538
Total ................................. 6,978,301
Australia - 2.25%
Advance Bank Australia Ltd. ............ 526,036 3,588,955
Futuris Corporation LTD ................ 2,579,300 2,219,702
News Corporation Limited ............... 563,180 2,205,000
Westpac Banking Corp. .................. 1,887,894 6,352,391
Total ................................. 14,366,048
Brazil - 0.63%
Santista Alimentos S.A. ................ 815,000 1,674,262
Telecomunicacoes Brasileiras S/A -
Telebras, ADR ......................... 52,107 2,330,985
Total ................................. 4,005,247
Canada - 0.30%
Suzy Shier Limited* .................... 360,100 1,926,492
Chile - 0.28%
Laboratorio Chile S.A., ADR ............ 60,000 1,312,500
Telex-Chile, S.A., ADR ................. 45,000 478,125
Total ................................. 1,790,625
China - 0.45%
Shandong Hauneng Power Development
Ltd., Series N* ....................... 300,000 2,887,500
Denmark - 1.55%
Danske Traelast* ....................... 80,000 6,361,081
Thorkild Kristensen .................... 58,450 3,506,328
Total ................................. 9,867,409
See Notes to Schedule of Investments on page 13.
<PAGE>
THE INVESTMENTS OF
UNITED INTERNATIONAL GROWTH FUND, INC.
DECEMBER 31, 1994
Shares Value
COMMON STOCKS AND RIGHTS (Continued)
Finland - 13.91%
Enso-Gutzeit Oy ........................ 1,120,000 $ 9,621,749
Kymmene Oy ............................. 250,000 6,807,244
Metsa-Serla Oy, Series B ............... 276,000 12,117,528
Nokia Corporation ...................... 326,000 48,167,849
Pohjola Insurance Company Ltd. ......... 76,700 835,385
Raision Tehtaat Oy AB .................. 10,500 177,305
Tampella Oy* ........................... 3,776,667 11,160,363
Total ................................. 88,887,423
France - 7.50%
Cerus .................................. 283,333 4,751,415
Credit Lyonnais SA* .................... 84,375 6,987,774
Europe 1 Communication ................. 6,000 1,643,620
Guyenne et Gascogne .................... 19,500 4,932,547
Lapeyre S.A. ........................... 202,985 10,231,022
Pinault-Printemps SA ................... 21,000 3,730,186
Societe Industrielle de Transports
Automobiles S.A. ...................... 42,100 5,474,499
Television-Francais 1-TF1 S.A. ......... 50,000 4,536,256
UNION DES ASSURANCES DE PARIS ......... 150,000 3,872,962
UNION DES ASSURANCES FEDERALES ........ 18,000 1,790,894
Total ................................. 47,951,175
Germany - 6.61%
Buderus Aktiengesellschaft ............. 6,000 2,567,280
FAG Kugelfischer AG* ................... 35,000 5,195,224
GILDEMEISTER Aktiengesellschaft* ....... 47,800 4,596,450
Mannesman AG ........................... 36,000 9,804,453
plettac AG ............................. 1,150 545,499
TRAUB AG (A)* .......................... 49,800 6,877,832
VEBA AG ................................ 22,500 7,841,239
Vereinigter Baubeschlag-Handel
Aktiengesellschaft..................... 16,900 4,798,967
Total ................................. 42,226,944
See Notes to Schedule of Investments on page 13.
<PAGE>
THE INVESTMENTS OF
UNITED INTERNATIONAL GROWTH FUND, INC.
DECEMBER 31, 1994
Shares Value
COMMON STOCKS AND RIGHTS (Continued)
Hong Kong - 3.54%
Dongfang Electrical Machinery
Co., Ltd.* ............................ 3,000,000 $ 1,366,632
First Pacific Company Limited* ......... 7,614,000 5,559,460
Great Eagle Holdings Limited ........... 2,000,000 801,241
Guangdong Corporation Limited ..........11,000,000 5,437,452
Guangzhou Investment Company Ltd. ......16,000,000 3,246,317
Harbin Power Equipment Co. Ltd.* ....... 2,000,000 672,008
Hutchison Whampoa Limited .............. 780,000 3,155,079
Luks Industrial Company Limited ........11,500,000 1,634,789
M. C. Packaging (Hong Kong) LTD ........ 2,000,000 775,394
Total ................................. 22,648,372
Italy - 0.49%
Arnoldo Mondadori Editore S.p.A. ....... 320,000 2,458,880
Banco di Sardegna Non-Convertible,
RISP .................................. 92,200 677,167
Total ................................. 3,136,047
Japan - 9.80%
Amway Japan ............................ 75,000 2,578,947
Hitachi ................................ 1,000,000 9,914,787
Japan Airport Terminal Co.* ............ 100,000 1,333,333
Kawasaki Steel Corporation* ............ 750,000 3,135,338
Kobe Steel, Ltd.* ...................... 500,000 1,558,897
Matsushita Electric Industrial ......... 200,000 3,288,221
Mitsubishi Chemical .................... 450,000 2,472,180
Mitsubishi Motors ...................... 400,000 3,917,794
NEC .................................... 600,000 6,857,143
NKK* ................................... 2,000,000 5,533,835
Nakakita Seisakusho Company, Ltd. ...... 169,000 747,158
Navix Line* ............................ 950,000 3,371,429
NIPPON STEEL CORPORATION ............... 500,000 1,879,699
Nippon Telegraph & Telephone
Corporation ........................... 400 3,532,832
Sharp .................................. 200,000 3,609,023
Sumitomo Chemical ...................... 850,000 4,857,143
Sumitomo Metal Industries, Ltd.* ....... 1,250,000 4,047,619
Total ................................. 62,635,378
See Notes to Schedule of Investments on page 13.
<PAGE>
THE INVESTMENTS OF
UNITED INTERNATIONAL GROWTH FUND, INC.
DECEMBER 31, 1994
Shares Value
COMMON STOCKS AND RIGHTS (Continued)
Mexico - 7.84%
Cemex, S.A., CPO Shares, Series A ...... 1,308,750 $ 6,439,050
Corporacion GEO, S.A. de C.V., Class B* 210,000 1,092,000
Corporacion GEO, S.A. de C.V., ADR,
Class B* .............................. 25,000 493,750
Desc-Sociedad de Fomento Industrial,
S.A. de C.V., Class B ................. 847,000 4,235,000
Desc-Sociedad de Fomento Industrial,
S.A. de C.V., Class C ................ 228,918 1,277,363
Farmacies Benavides, S.A. de C.V.,
Class B* ............................. 350,000 719,600
Grupo Carso, S.A. de C.V., Series 1A* .. 636,500 4,678,275
Grupo Financiero Banamex Accival,
S.A. de C.V., C ....................... 659,000 1,897,920
Grupo Financiero Bancomer, S.A. de
C.V., CPO Shares, Series B ............ 5,279,600 2,502,530
Grupo Financiero Bancomer, S.A. de
C.V., Series C ........................ 500,000 275,000
Grupo Financiero InverMexico,
S.A. de C.V., B ...................... 1,000,000 880,000
Grupo Financiero InverMexico,
S.A. de C.V., L ....................... 100,000 88,000
Grupo Mexicano de Desarrollo, S.A.,
B, ADR*................................ 235,800 1,797,975
Grupo Mexicano de Desarrollo, S.A.,
L, ADR* ............................... 198,119 1,758,306
Grupo Tribasa, S.A.de C.V., ADR* ....... 209,000 3,474,625
Hylsamex, S.A. de C.V., ADR (B)* ....... 125,000 2,109,375
Telefonos de Mexico, S.A. de C.V.,
ADR ................................... 400,000 16,400,000
Total ................................. 50,118,769
Norway - 3.84%
Den Norske Bank* ....................... 100,000 267,514
Den Norske Luftfartselskap A/S,
Series B* ............................. 350,000 11,018,327
Elkem Metals, Class A* ................ 500,500 6,472,620
Gresvig A/S* ........................... 75,000 886,787
Kverneland A/S ......................... 200,000 2,660,361
Schibsted A/S .......................... 145,000 1,671,593
Sparebkn Nor Grundfondsbevis ........... 80,000 1,560,745
Total ................................. 24,537,947
Singapore - 0.16%
L&M Group Investments Ltd. ............. 1,541,000 1,088,635
See Notes to Schedule of Investments on page 13.
<PAGE>
THE INVESTMENTS OF
UNITED INTERNATIONAL GROWTH FUND, INC.
DECEMBER 31, 1994
Shares Value
COMMON STOCKS AND RIGHTS (Continued)
Spain - 4.27%
Asland, S.A. .......................... 25,893 $ 345,043
Centros Commerciales Pryca, S.A. ....... 230,100 3,468,098
Conserva Campofrio, S.A. ............... 16,979 902,453
Corporation Financiero Alba, S.A. ...... 77,250 3,273,007
Cortefiel S.A. ......................... 26,360 790,600
Cristaleria Espanola, S.A.* ............ 65,283 3,474,820
Cubiertas y Mzov S.A. .................. 114,525 8,078,491
Grupo Uralita S.A.* .................... 480,000 4,683,371
Inmobiliaria Metropolitana Vasco
Central, S.A. ......................... 70,000 2,250,949
Total ................................. 27,266,832
Sweden - 15.01%
ASTRA AB, Class A ...................... 276,665 7,145,793
Avesta Sheffield AB* ................... 231,437 2,288,311
Bilspedition AB* ....................... 1,175,000 4,046,437
Bylock & Nordsjofrakt AB, Class B ...... 137,600 1,082,852
Catena, Series A* ...................... 550,000 4,698,199
Forsheda AB, Class B ................... 125,000 2,732,488
Hoganas AB* ............................ 300,000 4,641,027
Kinnevik AB, Series B .................. 375,000 12,409,702
Marieberg Tidnings AB, Series A ........ 15,200 343,517
NCC AB, Series B* ...................... 500,000 4,405,612
Rottneros AB* .......................... 3,000,000 3,773,356
Rottneros AB, Rights* .................. 3,000,000 585,173
Skandia Enskilda Banken, Class A* ...... 1,520,000 8,690,154
Skane-Gripen AB, Class B ............... 270,000 1,852,375
Stena Line AB, Class B ................. 474,500 2,585,153
Svenska Handelsbanken, Class A ......... 250,000 3,295,802
Trelleborg AB, Series B* ............... 450,000 6,568,062
Trygg-Hansa S Holding AB ............... 550,000 5,918,990
AB Volvo .............................. 1,000,000 18,833,152
Total ................................. 95,896,155
Switzerland - 1.84%
BIL GT Group ........................... 5,000 2,417,876
Forbo Holding SA ....................... 4,900 4,117,647
Prodega AG ............................ 5,200 1,330,787
Societe Internationale Pirelli* ........ 40,000 3,911,383
Total ................................. 11,777,693
See Notes to Schedule of Investments on page 13.
<PAGE>
THE INVESTMENTS OF
UNITED INTERNATIONAL GROWTH FUND, INC.
DECEMBER 31, 1994
Shares Value
COMMON STOCKS AND RIGHTS (Continued)
Thailand - 2.19%
Charoen Pokphand Feedmill* ............. 850,000 $ 5,795,841
Matichon Company Ltd.* ................. 696,866 4,514,789
Sahaviriya Steel Industry .............. 300,000 1,319,736
Thai Stanley Electric Co. Ltd. ......... 206,800 744,331
Univest Land Public Co. Ltd.* .......... 500,000 1,599,680
Total ................................. 13,974,377
Turkey - 0.15%
Tofas, Turk Otomobil Fabrikasi
Anonim Sirketi, ADS (B) ............... 230,000 948,750
United Kingdom - 9.16%
AMEC ................................... 3,700,000 3,999,273
BET Plc ................................ 1,200,000 1,907,996
BTR PLC ................................ 1,200,000 5,517,211
British Sky Broadcasting
Group plc, ADR* ....................... 67,000 1,608,000
Comcast UK Cable Partners* ............. 75,000 1,195,275
House of Fraser PLC .................... 2,175,000 5,945,453
MFI Furniture Group PLC ................ 750,000 1,527,337
Next plc ............................... 4,450,000 17,915,271
Pilkington PLC ......................... 3,080,645 8,010,876
Shandwick PLC .......................... 2,900,000 1,839,854
Takare PLC ............................. 465,000 1,602,529
Taylor Woodrow ......................... 1,500,000 2,995,930
United Biscuits (Holdings) Public
Limited Co. ........................... 867,822 4,445,378
Total ................................. 58,510,383
TOTAL COMMON STOCKS AND RIGHTS - 92.86% $593,426,502
(Cost: $534,315,444)
PREFERRED STOCKS
Brazil - 0.78%
Iochpe-Maxion S.A. ..................... 7,201,000 5,016,045
Germany - 1.49%
Hornbach-Baumarkt AG ................... 9,500 9,503,065
TOTAL PREFERRED STOCKS - 2.27% $ 14,519,110
(Cost: $7,012,752)
See Notes to Schedule of Investments on page 13.
<PAGE>
THE INVESTMENTS OF
UNITED INTERNATIONAL GROWTH FUND, INC.
DECEMBER 31, 1994
Value
TOTAL SHORT-TERM SECURITIES - 5.44% $ 34,735,615
(Cost: $34,735,615)
TOTAL INVESTMENT SECURITIES - 100.57% $642,681,227
(Cost: $576,063,811)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.57%) (3,627,435)
NET ASSETS - 100.00% $639,053,792
Notes to Schedule of Investments
*No income dividends were paid during the preceding 12 months.
(A) Affiliate as defined by the Investment Company Act of 1940 by reason of
ownership by the Fund of 5% or more of its outstanding voting securities.
(B) As of December 31, 1994, the following restricted securities were owned in
the International Growth Fund:
Acquisition Acquisition Market
Security Date Shares Cost Value
---------------- --------------------------------------------
Hylsamex, S.A. de
C.V., ADS 10/27/94 125,000 $2,687,500 $2,109,375
Tofas, Turk
Otomobil
Fabrikasi Anonim
Sirketi, ADS 3/3/94 150,000 1,237,500 618,750
3/8/94 40,000 327,500 165,000
3/9/94 40,000 265,000 165,000
---------- ----------
$4,517,500 $3,058,125
========== ==========
The total market value of restricted securities represents approximately
0.48% of the total net assets in the International Growth Fund at December
31, 1994.
See Note 1 to financial statements for security valuation and other significant
accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and
depreciation of investments owned for Federal income tax purposes.
<PAGE>
UNITED INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
Assets
Investment securities -- at value (Notes 1 and 3) . $642,681,227
Cash ............................................ 1,807,131
Receivables:
Investment securities sold ...................... 4,514,844
Fund shares sold ................................ 2,366,382
Dividends and interest .......................... 1,555,326
Prepaid insurance premium ......................... 22,960
------------
Total assets .................................. 652,947,870
------------
Liabilities
Payable for investment securities purchased ...... 11,594,539
Payable for Fund shares redeemed ............ ..... 1,761,740
Accrued service fee .............................. 151,879
Accrued transfer agency and dividend disbursing .. 147,823
Accrued accounting services fee ................... 5,833
Other ............................................ 232,264
------------
Total liabilities ............................. 13,894,078
------------
Total net assets ............................. $639,053,792
============
Net Assets
$1.00 par value capital stock, authorized --
300,000,000; shares outstanding -- 77,524,613
Capital stock ................................... $ 77,524,613
Additional paid-in capital ...................... 485,996,513
Accumulated undistributed income:
Accumulated undistributed net investment loss ... (836,703)
Accumulated net realized gain on
investment transactions ....................... 9,756,877
Net unrealized appreciation in value
of investments at end of period ............... 66,617,416
Net unrealized depreciation in value of foreign
currency exchange at end of period ............ (4,924)
------------
Net assets applicable to outstanding
units of capital ............................. $639,053,792
============
Net asset value per share (net assets divided by
shares outstanding) .............................. $8.24
=====
See notes to financial statements.
<PAGE>
UNITED INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended DECEMBER 31, 1994
Investment Income
Income:
Dividends (net of foreign withholding
taxes of $467,369) ............................ $ 2,540,916
Interest ........................................ 667,102
-----------
Total income .................................. 3,208,018
-----------
Expenses (Note 2):
Investment management fee ....................... 2,303,972
Transfer agency and dividend disbursing ......... 638,426
Custodian fees .................................. 509,473
Service fee ..................................... 390,378
Accounting services fee ......................... 35,000
Audit fees ...................................... 18,053
Legal fees ...................................... 11,004
Other ........................................... 140,209
-----------
Total expenses ................................ 4,046,515
-----------
Net investment loss ......................... (838,497)
-----------
Realized and Unrealized Gain (Loss) on Investments
Realized net gain on securities .................. 19,315,337
Realized net loss on foreign currency
transactions .................................... (968,722)
-----------
Realized net gain on investments ................ 18,346,615
-----------
Unrealized depreciation in value of securities
during the period................................ (6,498,487)
Unrealized depreciation on open forward
currency contracts during the period ............ (179,400)
Unrealized depreciation in value of foreign
currency exchange at end of period .............. (4,924)
-----------
Unrealized depreciation on investments .......... (6,682,811)
-----------
Net gain on investments ....................... 11,663,804
-----------
Net increase in net assets resulting from
operations ................................. $10,825,307
===========
See notes to financial statements.
<PAGE>
UNITED INTERNATIONAL GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the For the
six months fiscal year
ended ended
December 31, June 30,
1994 1994
------------ -----------
Increase in Net Assets
Operations:
Net investment income (loss) ........ $ (838,497) $ 2,761,831
Realized net gain on investments .... 18,346,615 71,481,604
Unrealized appreciation
(depreciation) .................... (6,682,811) 37,517,137
------------ ------------
Net increase in net assets
resulting from operations ........ 10,825,307 111,760,572
------------ ------------
Dividends to shareholders from:*
Net investment income (1,450,821) (2,383,629)
Realized gains on securities
transactions (64,027,895) (25,486,802)
------------ ------------
(65,478,716) (27,870,431)
------------ ------------
Capital share transactions:
Proceeds from sale of shares
(8,972,279 and 18,563,121
shares, respectively) ............. 85,538,648 167,996,208
Proceeds from reinvestment
of dividends and/or capital
gains distribution (7,787,655 and
3,149,966 shares, respectively) .... 64,481,819 27,280,780
Payments for shares redeemed
(3,017,980 and 4,880,995
shares, respectively) (28,769,329) (43,092,631)
------------ ------------
Net increase in net assets
resulting from capital share
transactions...................... 121,251,138 152,184,357
------------ ------------
Total increase ................... 66,597,729 236,074,498
Net Assets
Beginning of period .................. 572,456,063 336,381,565
------------ ------------
End of period .........................$639,053,792 $572,456,063
============ ============
Undistributed net investment
income (loss) ..................... $(836,703) $1,452,615
=========== ==========
*See "Financial Highlights" on page 17.
See notes to financial statements.
<PAGE>
UNITED INTERNATIONAL GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS
For a Share of Capital Stock Outstanding
Throughout Each Period:
For the
six
months For the fiscal year ended June 30,
ended -----------------------------------
12/31/94 1994 1993 1992 1991 1990
-------- ----- ----- ----- ----- -----
Net asset value,
beginning of
period ........... $8.98 $7.16 $7.10 $5.94 $6.77 $6.21
----- ----- ----- ----- ----- -----
Income from investment
operations:
Net investment
income (loss) ... (0.01) .04 .07 .08 .12 .12
Net realized and
unrealized gain
(loss) on
investments ..... 0.22 2.32 .11 1.20 (0.83) .83
----- ----- ----- ----- ----- -----
Total from investment
operations ...... 0.21 2.36 .18 1.28 (0.71) .95
----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment
income .......... (0.02) (0.04) (0.07) (0.09) (0.12) (0.13)
Distribution from
capital gains ... (0.93) (0.50) (0.05) (0.03) 0.00 (0.26)
----- ----- ----- ----- ----- -----
Total distributions (0.95) (0.54) (0.12) (0.12) (0.12) (0.39)
----- ----- ----- ----- ----- -----
Net asset value,
end of period .... $8.24 $8.98 $7.16 $7.10 $5.94 $6.77
===== ===== ===== ===== ===== =====
Total return* ...... 2.26% 33.31% 2.62% 21.59%-10.50% 15.44%
Net assets, end of
period (000
omitted) .........$639,054$572,456$336,382$322,534$259,322$291,691
Ratio of expenses
to average net
assets ........... 1.26%** 1.20% 1.18% 1.18% 1.20% 1.17%
Ratio of net
investment income
to average net
assets ........... -0.26%** 0.57% 1.07% 1.17% 1.89% 1.81%
Portfolio turnover
rate ............. 48.46%**83.76% 94.22% 112.82%118.05% 196.43%
*Total return calculated without taking into account the sales load deducted on
an initial purchase.
**Annualized.
See notes to financial statements.
<PAGE>
UNITED INTERNATIONAL GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
NOTE 1 -- Significant Accounting Policies
United International Growth Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 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. The policies are in conformity with generally accepted accounting
principles.
A. Security valuation -- Each stock and convertible bond is valued at the
latest sale price thereof on the last business day of the fiscal period as
reported by the principal securities exchange on which the issue is traded
or, if no sale is reported for a stock, the average of the latest bid and
asked prices. Bonds, other than convertible bonds, are valued using a
pricing system provided by a major dealer in bonds. Convertible bonds are
valued using this pricing system only on days when there is no sale
reported. Stocks which are traded over-the-counter are priced using NASDAQ
(National Association of Securities Dealers Automated Quotations) which
provides information on bid and asked or closing prices quoted by major
dealers in such stocks. Securities for which quotations are not readily
available are valued as determined in good faith in accordance with
procedures established by and under the general supervision of the Fund's
Board of Directors. Short-term debt securities are valued at amortized
cost, which approximates market.
B. Security transactions and related investment income -- Security
transactions are accounted for on the trade date (date the order to buy or
sell is executed). Securities gains and losses are calculated on the
identified cost basis. Original issue discount (as defined in the Internal
Revenue Code), premiums on the purchase of bonds and post-1984 market
discount are amortized for both financial and tax reporting purposes over
the remaining lives of the bonds. Dividend income is recorded on the ex-
dividend date except that certain dividends from foreign securities are
recorded as soon as the Fund is informed of the ex-dividend date. Interest
income is recorded on the accrual basis. See Note 3 -- Investment
Securities Transactions.
C. Foreign currency translations -- All assets and liabilities expressed in
foreign currencies are converted into U.S. dollars at the mean of the bid
and asked prices of such currencies against U.S. dollars at the end of the
respective period. The cost of portfolio securities is translated at the
rates of exchange prevailing when acquired. Income is translated at rates
of exchange prevailing when accrued or received. The resulting transaction
exchange gains or losses have been included in the results of operations
with the type of transaction giving rise to the gain or loss.
D. Forward foreign currency exchange contracts -- A forward foreign currency
exchange contract (Forward Contract) is an obligation to purchase or sell a
specific currency at a future date at a fixed price. Forward Contracts are
"marked-to-market" daily at the applicable translation rates and the
resulting unrealized gains or losses are reflected in the Fund's financial
statements. Gains or losses are realized by the Fund at the time the
forward contract is extinguished. Contracts may be extinguished by either
entry into a closing transaction or by delivery of the currency. Risks may
arise from the possibility that the other party will not complete the
obligations of the contract and from unanticipated movements in the value
of the foreign currency relative to the U.S. dollar.
E. Federal income taxes -- It is the Fund's policy to distribute all of its
taxable income and capital gains to its shareholders and otherwise qualify
as a regulated investment company under the Internal Revenue Code. In
addition, the Fund intends to pay distributions as required to avoid
imposition of excise tax. Accordingly, provision has not been made for
Federal income taxes. See Note 4 -- Federal Income Tax Matters.
F. Dividends and distributions -- Dividends and distributions to shareholders
are recorded by the Fund on the record date. Net investment income
distributions and capital gains distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences are due to differing treatments
for items such as deferral of wash sales and post-October losses, foreign
currency transactions, net operating losses and expiring capital loss
carryforwards.
NOTE 2 -- Investment Management and Payments to Affiliated Persons
The Fund pays a fee for investment management services. The fee is
computed daily based on the net asset value at the close of business. The fee
consists of two elements: (i) a "Specific" fee computed on net asset value as of
the close of business each day at the annual rate of .30% of net assets and (ii)
a "Group" fee computed each day on the combined net asset values of all of the
funds in the United Group of mutual funds (approximately $11.0 billion of
combined net assets at December 31, 1994) at annual rates of .51% of the first
$750 million of combined net assets, .49% on that amount between $750 million
and $1.5 billion, .47% between $1.5 billion and $2.25 billion, .45% between
$2.25 billion and $3 billion, .43% between $3 billion and $3.75 billion, .40%
between $3.75 billion and $7.5 billion, .38% between $7.5 billion and $12
billion, and .36% of that amount over $12 billion. The Fund accrues and pays
this fee daily.
Pursuant to assignment of the Investment Management Agreement between the
Fund and Waddell & Reed, Inc. ("W&R"), Waddell & Reed Investment Management
Company ("WRIMCO"), a wholly-owned subsidiary of W&R, serves as the Fund's
investment manager.
The Fund has an Accounting Services Agreement with Waddell & Reed Services
Company ("WARSCO"), a wholly-owned subsidiary of W&R. Under the agreement,
WARSCO acts as the agent in providing accounting services and assistance to the
Fund and pricing daily the value of shares of the Fund. For these services, the
Fund pays WARSCO a monthly fee of one-twelfth of the annual fee shown in the
following table.
Accounting Services Fee
Average
Net Asset Level Annual Fee
(all dollars in millions) Rate for Each Level
------------------------- -------------------
From $ 0 to $ 10 $ 0
From $ 10 to $ 25 $ 10,000
From $ 25 to $ 50 $ 20,000
From $ 50 to $ 100 $ 30,000
From $ 100 to $ 200 $ 40,000
From $ 200 to $ 350 $ 50,000
From $ 350 to $ 550 $ 60,000
From $ 550 to $ 750 $ 70,000
From $ 750 to $1,000 $ 85,000
$1,000 and Over $100,000
At present, the Fund operates under state expense requirements which limit
the amount of aggregate annual expenses, adjusted for certain excess custodian
fees, that the Fund may incur during its fiscal year. The Manager will
reimburse the Fund for any expenses in excess of the limitation. No such
reimbursement was required for the period ended December 31, 1994.
The Fund also pays WARSCO a monthly per account charge for transfer agency
and dividend disbursement services of $1.0208 for each shareholder account which
was in existence at any time during the prior month, plus $0.30 for each account
on which a dividend or distribution of cash or shares had a record date in that
month. The Fund also reimburses W&R and WARSCO for certain out-of-pocket costs.
As principal underwriter for the Fund's shares, W&R received direct and
indirect gross sales commissions (which are not an expense of the Fund) of
$2,492,450, out of which W&R paid sales commissions of $1,462,580 and all
expenses in connection with the sale of Fund shares, except for registration
fees and related expenses.
Under a Service Plan adopted by the Fund pursuant to Rule 12b-1 under the
Investment Company Act of 1940, the Fund may pay monthly a fee to W&R in an
amount not to exceed .25% of the Fund's average annual net assets. The fee is
to be paid to reimburse W&R for amounts it expends in connection with the
provision of personal services to Fund shareholders and/or maintenance of
shareholder accounts.
The Fund paid Directors' fees of $10,975.
W&R is an indirect subsidiary of Torchmark Corporation, a holding company,
and United Investors Management Company, a holding company, and a direct
subsidiary of Waddell & Reed Financial Services, Inc., a holding company.
NOTE 3 -- Investment Securities Transactions
Purchases of investment securities, other than U.S. Government and short-
term securities, aggregated $198,007,524 while proceeds from maturities and
sales aggregated $148,651,129. Purchases of short-term securities aggregated
$275,248,297 while proceeds from maturities and sales of short-term securities
aggregated $231,980,417. No U.S. Government securities were bought or sold
during the period.
For Federal income tax purposes, cost of investments owned at December 31,
1994 was $576,063,811, resulting in net unrealized appreciation of $66,617,416,
of which $112,796,222 related to appreciated securities and $46,178,806 related
to depreciated securities.
NOTE 4 -- Federal Income Tax Matters
For Federal income tax purposes, the Fund realized capital gain net income
of $70,169,156 during its fiscal year ended June 30, 1994, of which a portion
was paid to shareholders during the period ended June 30, 1994. Remaining
capital gain net income has been distributed to Fund shareholders.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
United International Growth Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of United International Growth Fund,
Inc. (the "Fund") at December 31, 1994, the results of its operations for the
six months ehen ended and the changes in its net assets and the financial
highlights for the periods indicated, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1994 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
Kansas City, Missouri
January 31, 1995
<PAGE>
To all IRA Planholders:
As required by law, income tax will automatically be withheld from any
distribution or withdrawal from an IRA unless you make a written election not to
have taxes withheld. The election may be made by submitting forms provided by
Waddell & Reed, Inc. which can be obtained from your Waddell & Reed
representative or by submitting Internal Revenue Service form W-4P. Once made,
an election can be revoked by providing written notice to Waddell & Reed, Inc.
If you elect not to have tax withheld you may be required to make payments of
estimated tax. Penalties may be imposed by the IRS if withholding and estimated
tax payments are not adequate.
DIRECTORS
Ronald K. Richey, Birmingham, Alabama, Chairman of the Board
Henry L. Bellmon, Red Rock, Oklahoma
Dodds I. Buchanan, Boulder, Colorado
Jay B. Dillingham, Kansas City, Missouri
John F. Hayes, Hutchinson, Kansas
Glendon E. Johnson, Miami, Florida
William T. Morgan, Los Angeles, California
Doyle Patterson, Kansas City, Missouri
Keith A. Tucker, Overland Park, Kansas
Frederick Vogel, III, Milwaukee, Wisconsin
Paul S. Wise, Carefree, Arizona
Leslie S. Wright, Birmingham, Alabama
OFFICERS
Keith A. Tucker, President
Robert L. Hechler, Vice President
Henry J. Herrmann, Vice President
Theodore W. Howard, Vice President and Treasurer
Sharon K. Pappas, Vice President and Secretary
Carl E. Sturgeon, Vice President
Mark L. Yockey, Vice President
<PAGE>
THE UNITED GROUP OF MUTUAL FUNDS
United Cash Management, Inc.
United Government Securities Fund, Inc.
United Bond Fund
United Municipal Bond Fund, Inc.
United Continental Income Fund, Inc.
United Income Fund
United Municipal High Income Fund, Inc.
United High Income Fund, Inc.
United High Income Fund II, Inc.
United Accumulative Fund
United Vanguard Fund, Inc.
United New Concepts Fund, Inc.
United Science and Technology Fund
United International Growth Fund, Inc.
United Gold & Government Fund, Inc.
United Retirement Shares, Inc.
- ------------------------------------
FOR MORE INFORMATION:
Contact your representative, or your
local office as listed on your
Account Statement, or contact:
WADDELL & REED
CUSTOMER SERVICE
6300 Lamar Avenue
P.O. Box 29217
Shawnee Mission, KS 66201-9217
(913) 236-1303
NUR1002A(12-94)
printed on recycled paper
