SUPPLEMENT TO THE PROSPECTUS May 1, 2000
(Table 1) (Table 2)
United Asset Strategy Fund, Inc. United Government Securities Fund, Inc.
United Continental Income Fund, Inc. United Municipal Bond Fund, Inc.
United Funds, Inc. United Municipal High Income Fund, Inc.
United High Income Fund, Inc.
United High Income Fund II, Inc.
United International Growth Fund, Inc.
United New Concepts Fund, Inc.
United Retirement Shares, Inc.
United Small Cap Fund, Inc.
United Tax-Managed Equity Fund, Inc.
United Vanguard Fund, Inc.
The following supplements the information regarding Class A shares in the
sections entitled "Choosing A Share Class":
The expanded table below replaces the table regarding the initial sales charge
applicable to purchases of Class A shares:
(Table 1)
Sales Charge as Sales Charge as Approx.Dealer Reallowance
as Percent of Percent of Amount as Percent of
Size of Purchase Offering Price Invested Offering Price
Under $100,000 5.75% 6.10% 5.00%
$100,000 to less
than $200,000 4.75% 4.99% 4.00%
$200,000 to less
than $300,000 3.50% 3.63% 2.80%
$300,000 to less
than $500,000 2.50% 2.56% 2.00%
$500,000 to less
than $1,000,000 1.50% 1.52% 1.20%
$1,000,000 to less
than $2,000,000 1.00% 1.01% 0.75%
$2,000,000 and over 0.00% 0.00% 0.50%*
(Table 2)
Sales Charge as Sales Charge as Approx.Dealer Reallowance
as Percent of Percent of Amount as Percent of
Size of Purchase Offering Price Invested Offering Price
Under $100,000 4.25% 4.44% 3.60%
$100,000 to less
than $300,000 3.25% 3.36% 2.75%
$300,000 to less
than $500,000 2.50% 2.56% 2.00%
$500,000 to less
than $1,000,000 1.50% 1.52% 1.40%
$1,000,000 to less
than $2,000,000 1.00% 1.01% 0.75%
$2,000,000 and over 0.00% 0.00% 0.50%*
*Waddell & Reed, Inc. may pay additional compensation from its own resources
to securities dealers based upon the value of shares of the Fund owned by
the dealer for its own account or for its customers. Waddell & Reed, Inc.
may also provide compensation from its own resources to securities dealers
with respect to other shares of the Fund purchased by customers of such
dealers without payment of a sales charge.
Until March 31, 2001, Class A shares may also be purchased at net asset value
("NAV") by persons who are clients of Legend Equities Corporation if the
purchase of Class A shares is made with the proceeds of the redemption of shares
of a mutual fund which is not within the United Group of Mutual Funds and the
purchase is made within 60 days of such redemption.
To be attached to the cover page of the Prospectus of:
United Asset Strategy Fund, Inc. - dated December 31, 1999
United Continental Income Fund, Inc. - dated September 20, 1999
United Funds, Inc. - dated September 20, 1999
United Government Securities Fund, Inc. - dated September 20, 1999
United High Income Fund, Inc. - dated September 20, 1999
United High Income Fund II, Inc. - dated December 31, 1999
United International Growth Fund, Inc. - dated September 20, 1999
United Municipal Bond Fund, Inc. - dated December 31, 1999
United Municipal High Income Fund, Inc. - dated December 31, 1999
United New Concepts Fund, Inc. - dated September 20, 1999
United Retirement Shares, Inc. - dated September 20, 1999
United Small Cap Fund, Inc. - dated October 4, 1999
United Tax-Managed Equity Fund, Inc. - dated March 31, 2000
United Vanguard Fund, Inc. - dated December 31, 1999
This Supplement is dated May 1, 2000.
NUS2100J
<PAGE>
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
United Asset Strategy Fund, Inc.
United Continental Income Fund, Inc.
United Funds, Inc.
United Government Securities Fund, Inc.
United High Income Fund, Inc.
United High Income Fund II, Inc.
United International Growth Fund, Inc.
United Municipal Bond Fund, Inc.
United Municipal High Income Fund, Inc.
United New Concepts Fund, Inc.
United Retirement Shares, Inc.
United Small Cap Fund, Inc.
United Tax-Managed Equity Fund, Inc.
United Vanguard Fund, Inc.
The following supplements the information under "Net Asset Value Purchases of
Class A Shares:"
Until March 31, 2001, Class A shares may also be purchased at net asset
value ("NAV") by persons who are clients of Legend Equities Corporation
("Legend") if the purchase of Class A shares is made with the proceeds of
the redemption of shares of a mutual fund which is not within the United
Group of Mutual Funds and the purchase is made within 60 days of such
redemption.
The disclosure regarding the respective Distribution and Service Plans ("Plans")
for Class A shares, Class B shares and Class C shares is revised to reflect that
such shares are offered through Waddell & Reed, Inc. and also through certain
other broker-dealers. In addition to the dealer reallowance that may be
applicable to Class A share purchases, as described in the Prospectus, Waddell &
Reed, Inc. may pay such broker-dealers a portion of the fees it receives under
the respective Plans as well as other compensation in connection with the
distribution of Fund shares, including the following: i) for the purchase of
Class A shares purchased at NAV by Legend clients, Waddell & Reed, Inc. (or its
affiliate) may pay Legend 1.00% of net assets invested; ii) for the purchase of
Class B shares, Waddell & Reed, Inc. (or its affiliate) may pay Legend 4.00% of
net assets invested; iii) for the purchase of Class C shares, Waddell & Reed,
Inc. (or its affiliate) may pay Legend 1.00% of net assets invested.
To be attached to the cover page of the Statement of Additional Information of:
United Asset Strategy Fund, Inc. - dated December 31, 1999
United Continental Income Fund, Inc. - dated September 20, 1999
United Funds, Inc. - dated April 30, 2000
United Government Securities Fund, Inc. - dated September 20, 1999
United High Income Fund, Inc. - dated September 20, 1999
United High Income Fund II, Inc. - dated December 31, 1999
United International Growth Fund, Inc. - dated September 20, 1999
United Municipal Bond Fund, Inc. - dated December 31, 1999
United Municipal High Income Fund, Inc. - dated December 31, 1999
United New Concepts Fund, Inc. - dated September 20, 1999
United Retirement Shares, Inc. - dated September 20, 1999
United Small Cap Fund, Inc. - dated October 4, 1999
United Tax-Managed Equity Fund, Inc. - dated March 31, 2000
United Vanguard Fund, Inc. - dated December 31, 1999
This Supplement is dated May 1, 2000.
