<PAGE> PAGE 1
000 B000000 06/30/99
000 C000000 0000101185
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 A
001 A000000 UNITED RETIREMENT SHARES, INC.
001 B000000 811-2263
001 C000000 9132362000
002 A000000 6300 LAMAR AVENUE P.O. BOX 29217
002 B000000 SHAWNEE MISSION
002 C000000 KS
002 D010000 66201
002 D020000 9217
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 WADDELL & REED INVESTMENT MANAGEMENT COMPANY
008 B000001 A
008 C000001 801-40372
008 D010001 OVERLAND PARK
008 D020001 KS
008 D030001 66202
008 D040001 4200
010 A000001 WADDELL & REED SERVICES COMPANY
010 B000001 84-1062
010 C010001 OVERLAND PARK
010 C020001 KS
010 C030001 66202
010 C040001 4200
011 A000001 WADDELL & REED, INC.
011 B000001 8-15372
011 C010001 OVERLAND PARK
011 C020001 KS
011 C030001 66202
<PAGE> PAGE 2
011 C040001 4200
012 A000001 WADDELL & REED SERVICES COMPANY
012 B000001 84-1062
012 C010001 OVERLAND PARK
012 C020001 KS
012 C030001 66202
012 C040001 4200
013 A000001 DELOITTE & TOUCHE LLP
013 B010001 KANSAS CITY
013 B020001 MO
013 B030001 64106
013 B040001 2232
015 A000001 UMB BANK, N.A.
015 B000001 C
015 C010001 KANSAS CITY
015 C020001 MO
015 C030001 64141
015 C040001 6226
015 E010001 X
015 A000002 BROWN BROTHERS HARRIMAN & CO.
015 B000002 S
015 C010002 BOSTON
015 C020002 MA
015 C030002 02109
015 E040002 X
015 A000003 UNITED MISSOURI TRUST COMPANY OF NEW YORK
015 B000003 S
015 C010003 NEW YORK
015 C020003 NY
015 C030003 10004
015 E010003 X
018 000000 Y
019 A000000 Y
019 B000000 36
019 C000000 UNITDGROUP
020 A000001 MORGAN (J.P.) SECURITIES INC.
020 B000001 13-3224016
020 C000001 110
020 A000002 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
020 B000002 13-5674085
020 C000002 94
020 A000003 DONALDSON LUFKIN & JENRETTE SECURITIES CORP.
020 B000003 13-2741729
020 C000003 89
020 A000004 MORGAN STANLEY & CO. INCORPORATED
020 B000004 13-2655998
020 C000004 79
020 A000005 DEUTSCHE BANK SECURITIES INC.
020 B000005 13-2730828
020 C000005 69
020 A000006 PRUDENTIAL SECURITIES INC.
<PAGE> PAGE 3
020 B000006 22-2347336
020 C000006 65
020 A000007 BRIDGE TRADING CO.
020 B000007 43-1450530
020 C000007 61
020 A000008 BAUM (GEORGE K.) & COMPANY
020 B000008 44-0522232
020 C000008 57
020 A000009 GOLDMAN, SACHS & CO.
020 B000009 13-5108880
020 C000009 55
020 A000010 INSTINET CORPORATION
020 B000010 13-3443395
020 C000010 54
021 000000 1530
022 A000001 GOLDMAN, SACHS & CO.
022 B000001 13-5108880
022 C000001 462924
022 D000001 174005
022 A000002 MORGAN (J.P.) SECURITIES INC.
022 B000002 13-3224016
022 C000002 268996
022 D000002 42780
022 A000003 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000003 13-5674085
022 C000003 232755
022 D000003 43843
022 A000004 SALOMON SMITH BARNEY INC.
022 B000004 13-1912900
022 C000004 177877
022 D000004 57834
022 A000005 GENERAL MILLS, INC.
022 C000005 72690
022 D000005 64558
022 A000006 LEHMAN BROTHERS INC.
022 B000006 13-2518466
022 C000006 73232
022 D000006 30353
022 A000007 CHASE SECURITIES INC.
022 B000007 13-3112953
022 C000007 72913
022 D000007 24170
022 A000008 DEUTSCHE BANK SECURITIES INC.
022 B000008 13-2730828
022 C000008 58275
022 D000008 36622
022 A000009 BANC OF AMERICA SECURITIES LLC
022 B000009 95-4035356
022 C000009 67953
022 D000009 26468
022 A000010 BANCBOSTON ROBERTSON STEPHENS INC.
<PAGE> PAGE 4
022 B000010 04-2472499
022 C000010 49803
022 D000010 11968
023 C000000 1819760
023 D000000 685833
024 000000 Y
025 A000001 MERRILL LYNCH & CO., INC.
025 B000001 13-2740599
025 C000001 E
025 D000001 11990
025 A000002 CITIGROUP INC.
025 B000002 52-1568099
025 C000002 E
025 D000002 9500
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 Y
027 000000 Y
028 A010000 12128
028 A020000 0
028 A030000 0
028 A040000 15155
028 B010000 8181
028 B020000 0
028 B030000 0
028 B040000 10373
028 C010000 9837
028 C020000 3624
028 C030000 0
028 C040000 13460
028 D010000 9001
028 D020000 0
028 D030000 0
028 D040000 11111
028 E010000 8351
028 E020000 0
028 E030000 0
028 E040000 8893
028 F010000 8258
<PAGE> PAGE 5
028 F020000 1797
028 F030000 0
028 F040000 10007
028 G010000 55756
028 G020000 5421
028 G030000 0
028 G040000 68999
028 H000000 21734
029 000000 Y
030 A000000 2706
030 B000000 5.75
030 C000000 0.00
031 A000000 1136
031 B000000 0
032 000000 0
033 000000 1570
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 1997
044 000000 0
045 000000 Y
046 000000 N
047 000000 N
048 000000 0.000
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
<PAGE> PAGE 6
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 Y
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 50
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
<PAGE> PAGE 7
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 Y
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 N
070 O010000 N
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
<PAGE> PAGE 8
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 996494
071 B000000 934495
071 C000000 762352
071 D000000 123
072 A000000 12
072 B000000 18187
072 C000000 6568
072 D000000 0
072 E000000 0
072 F000000 4421
072 G000000 85
072 H000000 0
072 I000000 1231
072 J000000 59
072 K000000 0
072 L000000 0
072 M000000 30
072 N000000 70
072 O000000 3
072 P000000 0
072 Q000000 0
072 R000000 13
072 S000000 12
072 T000000 1997
072 U000000 0
072 V000000 0
072 W000000 146
072 X000000 8067
072 Y000000 0
072 Z000000 16688
072AA000000 140230
072BB000000 50341
072CC010000 0
072CC020000 5039
072DD010000 15950
072DD020000 74
072EE000000 32599
073 A010000 0.1800
073 A020000 0.2000
073 B000000 0.3720
073 C000000 0.0000
074 A000000 7
074 B000000 0
074 C000000 13738
074 D000000 124752
074 E000000 0
074 F000000 748235
074 G000000 0
<PAGE> PAGE 9
074 H000000 0
074 I000000 0
074 J000000 26577
074 K000000 1007
074 L000000 2017
074 M000000 9
074 N000000 916342
074 O000000 21339
074 P000000 337
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 1330
074 S000000 0
074 T000000 893336
074 U010000 90403
074 U020000 340
074 V010000 9.84
074 V020000 9.85
074 W000000 0.0000
074 X000000 59142
074 Y000000 0
075 A000000 0
075 B000000 815793
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 Y
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 C000000 20400
081 A000000 Y
081 B000000 35
082 A000000 N
<PAGE> PAGE 10
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE THEODORE W. HOWARD
TITLE V.P. & TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE ANNUAL REPORT TO
SHAREHOLDERS DATED JUNE 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000101185
<NAME> UNITED RETIREMENT SHARES, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 741,543
<INVESTMENTS-AT-VALUE> 886,725
<RECEIVABLES> 29,601
<ASSETS-OTHER> 9
<OTHER-ITEMS-ASSETS> 7
<TOTAL-ASSETS> 916,342
<PAYABLE-FOR-SECURITIES> (21,339)
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (1,667)
<TOTAL-LIABILITIES> (23,006)
<SENIOR-EQUITY> 90,743
<PAID-IN-CAPITAL-COMMON> 566,647
<SHARES-COMMON-STOCK> 90,743
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 1,633
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 89,131
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 145,182
<NET-ASSETS> 893,336
<DIVIDEND-INCOME> 6,568
<INTEREST-INCOME> 18,187
<OTHER-INCOME> 0
<EXPENSES-NET> (8,067)
<NET-INVESTMENT-INCOME> 16,688
<REALIZED-GAINS-CURRENT> 89,889
<APPREC-INCREASE-CURRENT> (5,039)
<NET-CHANGE-FROM-OPS> 101,538
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (16,024)
<DISTRIBUTIONS-OF-GAINS> (32,599)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10,540
<NUMBER-OF-SHARES-REDEEMED> (14,553)
<SHARES-REINVESTED> 5,470
<NET-CHANGE-IN-ASSETS> 64,999
<ACCUMULATED-NII-PRIOR> 981
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4,421
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,067
<AVERAGE-NET-ASSETS> 815,793
<PER-SHARE-NAV-BEGIN> 9.28
<PER-SHARE-NII> .19
<PER-SHARE-GAIN-APPREC> .92
<PER-SHARE-DIVIDEND> (.18)
<PER-SHARE-DISTRIBUTIONS> (.37)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.84
<EXPENSE-RATIO> .99
</TABLE>
EX-99.B-77B
UNITED RETIREMENT SHARES, INC.
SUB-ITEM 77B Accountant's report on internal control:
INDEPENDENT AUDITORS' REPORT
To the Directors of United Retirement Shares, Inc.:
In planning and performing our audit of the financial statements of United
Retirement Shares, Inc. (the "Fund") for the year ended June 30, 1999 (on which
we have issued our report dated August 6, 1999), we considered its internal
control, including control activities for safeguarding securities, in order to
determine our auditing procedures for the purpose of expressing our opinion on
the financial statements and to comply with the requirements of Form N-SAR, and
not to provide assurance on the Fund's internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in any internal control, misstatements due to
error or fraud may occur and not be detected. Also, projections of any
evaluation of internal control to future periods are subject to the risk that
internal control may become inadequate because of changes in conditions, or that
the degree of compliance with policies or procedures may deteriorate.
Our consideration of the Fund's internal control would not necessarily disclose
all matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving the
Fund's internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
June 30, 1999.
This report is intended solely for the information and use of management, the
Board of Directors of United Retirement Shares, Inc., and the Securities and
Exchange Commission and is not intended to be and should not be used by anyone
other than these specified parties.
Deloitte & Touche LLP
August 6, 1999
EX-99.B-77C
UNITED RETIREMENT SHARES, INC.
SUB-ITEM 77C: Submission of matters to a vote of security
holders:
(a) A Special Meeting of Shareholders was held June 22, 1999.
(b) Auditors were approved.
(c) Matters voted upon at the Special Meeting:
Item 1. To elect the Board of Directors:
Broker
For Withhold Non-Votes*
J. Concannon 45,941,173 1,401,755 0
J. Dillingham 45,919,021 1,423,907 0
D. Gardner 45,885,435 1,457,493 0
L. Graves 45,914,244 1,428,684 0
J. Harroz Jr. 45,874,198 1,468,730 0
J. Hayes 45,788,010 1,554,918 0
R. Hechler 45,904,982 1,437,946 0
H. Herrmann 45,918,180 1,424,748 0
G. Johnson 45,770,798 1,572,130 0
W. Morgan 45,875,080 1,467,848 0
R. Reimer 45,860,907 1,482,021 0
F. Ross 45,934,091 1,408,837 0
E. Schwartz 45,898,436 1,444,492 0
K. Tucker 45,927,896 1,415,032 0
F. Vogel 45,928,846 1,414,082 0
Item 2. To ratify the selection of Deloitte & Touche LLP as the Fund's
independent accountants for its current fiscal year:
Broker
For Against Abstain Non-Votes*
45,150,428 429,447 1,763,053 0
Item 3. To approve or disapprove the amendment to the Fund's investment
management agreement with Waddell & Reed Investment Management Company:
Broker
For Against Abstain Non-Votes*
42,310,417 2,859,035 2,142,268 31,208
Item 4. To approve or disapprove amendment of the Fund's policy regarding
securities lending:
Broker
For Against Abstain Non-Votes*
42,275,580 2,150,542 2,885,598 31,208
Item 5. To approve or disapprove the Fund's Articles of Incorporation to
change the par value of Fund shares to $0.001:
Broker
For Against Abstain Non-Votes*
42,613,816 1,456,568 3,272,544 0
*Broker non-votes are proxies received by the Fund from brokers or nominees when
the broker or nominee neither has received instructions from the beneficial
owner or other persons entitled to vote nor has discretionary power to vote on a
particular matter.
(d) Not applicable
EX-99.B-77Q1(a)
UNITED RETIREMENT SHARES, INC.
SUB-ITEM 77Q1(a) Changes to the registrant's bylaws:
AMENDMENT TO BYLAWS
RESOLVED, That the Bylaws of each of United Funds, Inc., United Asset
Strategy Fund, Inc., United Cash Management, Inc., United Continental Income
Fund, Inc., United Gold & Government Fund, 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 Vanguard Fund, Inc., Target/United Funds, Inc.
and Waddell & Reed Funds, Inc. are amended by substitution of the following for
the initial paragraph of Article I, Section 7, regarding voting and inspectors;
and, with respect to United Asset Strategy Fund, Inc., United Retirement Shares,
Inc. and Waddell & Reed Funds, Inc., for Article II, Section 2, regarding voting
and proxies:
At all meetings of the stockholders, every stockholder of record
entitled to vote thereat shall be entitled to vote either in person or
by proxy, which term shall include proxies provided by such
stockholder, or his duly authorized attorney, through written,
electronic, telephonic, computerized, facsimile, telecommunications,
telex or oral communication or by any other form of communication,
each pursuant to such voting procedures and through such systems as
are authorized by the Board of Directors or one or more executive
officers of the Corporation. No proxy which is dated or, if otherwise
provided as permitted by these Bylaws and applicable Maryland law,
provided more than three months before the meeting at which it is
offered shall be accepted, unless such proxy shall, on its face, name
or, if otherwise provided as permitted by these Bylaws and applicable
Maryland law, provide a longer period for which it is to remain in
force.
I certify that I am Assistant Secretary of each of the following
Corporations, and as such officer, have custody of the minute books of the
Corporations, and that the foregoing resolutions are true and correct
resolutions duly passed by the Board of Directors of each of the following
Corporations at a meeting held on February 10, 1999.
United Funds, Inc.
United Asset Strategy Fund, Inc.
United Cash Management, Inc.
United Continental Income Fund, Inc.
United Gold & Government Fund, 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 Vanguard Fund, Inc.
Target/United Funds, Inc.
Waddell & Reed Funds, Inc.
/s/Kristen A. Richards
------------------------------
Kristen A. Richards, Assistant Secretary
Dated this 10th day of February, 1999.
EX-99.B-77Q1(e)
UNITED RETIREMENT SHARES, INC.
SUB-ITEM 77Q1(e) Changes to the registrant's investment
advisory contract:
EXHIBIT A TO INVESTMENT MANAGEMENT AGREEMENT
FEE SCHEDULE
A cash fee computed each day on net asset value for the Fund at the annual rates
listed below:
Net Assets Fee
Up to $1 billion 0.70% of net assets
Over $1 billion and up to $2 billion 0.65% of net assets
Over $2 billion and up to $3 billion 0.60% of net assets
Over $3 billion 0.55% of net assets
As Amended and Effective June 30, 1999.
