United
Municipal
Bond Fund,
Inc.
ANNUAL
REPORT
--------------------------------------------
For the fiscal year ended September 30, 1994
<PAGE>
FUND MANAGER'S LETTER
- -----------------------------------------------------------------
SEPTEMBER 30, 1994
Dear Shareholder:
This report relates to the operation of your Fund for the fiscal year ended
September 30, 1994. The following discussion, graphs and tables provide you
with information regarding the Fund's performance during that period.
The past fiscal year was noteworthy for the upward movement of interest
rates. The Federal Reserve increased rates several times to preempt the
inflationary tendencies that might result from a strengthening economy. For the
year, inflation remained low relative to historic levels. The increases in
interest rates caused the bond markets to fall, while slowing economic growth
somewhat relative to what might have occurred otherwise.
This past year the Fund sold over $100 million of its bonds having the
longest maturities. By then purchasing bonds with relatively shorter
maturities, the Fund decreased the average maturity of its portfolio, which
helped reduce the price volatility of the Fund's shares. The Fund's emphasis on
bonds with relatively higher stated yields helped minimize the decline in value
of the Fund's shares as interest rates rose.
The strategies and techniques we applied resulted in the direction of the
Fund's performance remaining fairly consistent with that of the indexes charted
on the following page. Those indexes reflect the performance of securities that
generally represent the municipal bond market (the Lehman Brothers Municipal
Bond Index) and the universe of funds with similar investment objectives (the
Lipper General Municipal Bond Fund Universe Average).
We expect the economy to continue growing, and we believe the Federal
Reserve will increase interest rates further if the pace of economic growth
strengthens. In that event, we expect short-term interest rates would increase
by a significantly greater amount than long-term rates, which are already
unusually high relative to the current rate of inflation. When it becomes
clearer that economic growth has slowed and the Federal Reserve has no further
intention of raising interest rates, we intend to lengthen maturities to
increase yields and improve the potential for appreciation. We believe that
even at current levels municipal bond yields are very attractive for long-term
investors.
Thank you for your continued confidence.
Respectfully,
John M. Holliday
Manager, United Municipal Bond Fund
<PAGE>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
UNITED MUNICIPAL BOND FUND, INC.,
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
AND THE LIPPER GENERAL MUNICIPAL BOND FUND UNIVERSE AVERAGE
The line graph which appears here is the paper version which was filed on Form
SE on November 23, 1994.
<PAGE>
SHAREHOLDER SUMMARY
- --------------------------------------------------------------
United Municipal Bond Fund, Inc.
PORTFOLIO STRATEGY:
Minimum 80% investment OBJECTIVE: Income not subject to
quality Municipal Bonds Federal income tax through a portfolio
of tax-exempt bonds. (Income may be
subject to state and local
Maximum 10% Non-Municipal taxes and a portion may be
Bond Debt Securities subject to Federal taxes, including
alternative minimum tax.)
May own 25% or more STRATEGY: Invests in tax-exempt
Industrial Revenue Bonds securities including public power,
housing, water, sewer and transportation
bonds.
FOUNDED: 1976
DIVIDENDS: PAID MONTHLY
<PAGE>
PERFORMANCE SUMMARY
PER SHARE DATA
For the Fiscal Year Ended September 30, 1994
- --------------------------------------------
DIVIDENDS PAID $ 0.378
=======
CAPITAL GAINS DISTRIBUTION $ 0.255
=======
NET ASSET VALUE ON
9/30/94 $6.91 adjusted to: $ 7.17 (A)
9/30/93 7.83
--------
CHANGE PER SHARE $ (0.66)
========
This number includes the capital gains distribution of $0.255 paid in December
1993 added to the actual net asset value on September 30, 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 9-30-94 -8.00% -3.91%
5-year period ended 9-30-94 7.22% 8.16%
10-year period ended 9-30-94 10.64% 11.12%
Performance data quoted represents past performance and is based on deduction of
4.25% 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 September 30, 1994, United Municipal Bond Fund, Inc. had net assets totaling
$950,952,328 invested in a diversified portfolio.
As a shareholder in United Municipal Bond Fund, Inc., for every $100 you had
invested on September 30, 1994, your Fund owned:
$18.46 Other Municipal Bonds
16.91 Public Power Revenue Bonds
13.17 Airport Revenue Bonds
9.09 Water and Sewer Revenue Bonds
7.06 Housing Revenue Bonds
7.02 Hospital Revenue Bonds
6.91 General Obligation Bonds
5.98 Lease/Certificates of Participation Bonds
5.89 Transportation Revenue Bonds
5.26 Cash and Cash Equivalents and Adjustable Rate Bonds
4.25 Resource Recovery Bonds
1994 TAX YEAR TAXABLE EQUIVALENT YIELDS*
- --------------------------------------------------------------------------------
If your Taxable Income is:
Your
Marginal Equivalent Tax Free Yields
Joint Single Tax ---------------------------------
Return ReturnBracket Is 6% 7% 8% 9%
- ---------------------------------------------------------------------------
$ 0- 38,000$ 0- 22,750 15% 7.06 8.24 9.41 10.59
$ 38,001- 91,850$ 22,751- 55,100 28% 8.33 9.72 11.11 12.50
$ 91,851-140,000$ 55,101-115,000 31% 8.70 10.14 11.59 13.04
$140,001-250,000$115,001-250,000 36% 9.38 10.94 12.50 14.06
$250,001 and above$250,001 and above 39.6% 9.93 11.59 13.25 14.90
Above table is for illustration only and does not represent the actual
performance of United Municipal Bond Fund, Inc.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS
ALABAMA - 0.25%
The Southeast Alabama Gas District,
Natural Gas System Revenue Bonds,
Series 1994-B,
6.0%, 3-1-2014 ........................ $ 1,450 $ 1,388,375
Montgomery County, Alabama, Revenue
Warrants (Department of Human Resources
Project), Series 1992,
7.0%, 4-1-2007 ........................ 1,000 1,026,250
Total ................................. 2,414,625
ALASKA - 0.29%
Alaska Housing Finance Corporation:
General Housing Purpose Bonds, 1994
Series A (Refunding/Non-AMT),
5.0%, 12-1-2008 ....................... 1,640 1,418,600
Collateralized Home Mortgage Bonds,
1990 Subseries A-3,
5.7%, 12-1-2011 ....................... 1,455 1,325,869
Total ................................. 2,744,469
ARIZONA - 2.11%
The Industrial Development Authority
of the County of Greenlee, Arizona,
Pollution Control Revenue Refunding
Bonds (Phelps Dodge Corporation
Project),
5.45%, 6-1-2009 ....................... 4,000 3,675,000
The Industrial Development Authority
of the City of Tuscon, Arizona,
Multifamily Housing Revenue Bonds,
Series 1985 (HSL La Cholla Project),
Adjustable Rate Bond,
3.5%, 12-1-2014........................ 3,255 3,255,000
Tempe Elementary School District No. 3
of Maricopa County, Arizona, School
Improvement and Refunding Bonds,
Series 1993,
7.5%, 7-1-2010 ........................ 2,815 3,202,063
Arizona Municipal Financing Program,
Certificates of Participation (Composite
Issue - Series 34),
7.25%, 8-1-2009 ....................... 2,750 3,018,125
City of Phoenix, Arizona, General
Obligation Refunding Bonds,
Series 1993A,
7.0%, 7-1-2010 ........................ 2,500 2,687,500
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
ARIZONA (Continued)
Gilbert Unified School District No. 41
of Maricopa County, Arizona School
Improvement Bonds, Project of 1993,
Series C (1994),
6.1%, 7-1-2014 ........................ $ 2,000 $ 1,960,000
Paradise Valley Unified School District
No. 69 of Maricopa County, Arizona,
Refunding Bonds, Second Series 1993,
0.0%, 7-1-2007 ........................ 3,000 1,391,250
Apache County (Arizona), Public Finance
Corporation, Certificates of Participation,
Series 1994,
5.5%, 5-1-2010......................... 1,000 881,250
Total ................................. 20,070,188
CALIFORNIA - 10.14%
City of Pomona, California, Single
Family Mortgage Revenue Refunding
Bonds (GNMA and FNMA Mortgage-Backed
Securities), Series 1990A,
7.6%, 5-1-2023 ........................ 15,000 17,287,500
County of Sacramento, California, Single
Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program),
Issue A of 1988,
8.125%, 7-1-2016 ...................... 10,810 13,039,563
Transmission Agency of Northern California,
California-Oregon Transmission Project
Revenue Bonds, 1990 Series A,
7.0%, 5-1-2013 ........................ 12,000 12,945,000
County of Riverside, California, Single
Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities),
1988 Series A,
8.3%, 11-1-2012 ....................... 10,000 11,887,500
Imperial Irrigation District,
1993 Refunding Certificates of
Participation (1990 Electric
System Project),
5.2%, 11-1-2009 ....................... 10,000 8,775,000
Community Facilities District No. 90-2
(Green Valley) of the City of Perris,
1991 Special Tax Bonds,
8.75%, 10-1-2021 ...................... 5,650 7,450,938
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
CALIFORNIA (Continued)
California Statewide Communities Development
Authority, Hospital Revenue Certificates
of Participation, Cedars-Sinai Medical Center,
Series 1992,
6.5%, 8-1-2012 ........................ $ 5,200 $ 5,252,000
State of California, Department of Water
Resources, Central Valley Project Water
System Revenue Bonds, Series M,
5.0%, 12-1-2013 ....................... 5,610 4,635,263
California Health Facilities Financing
Authority, Hospital Revenue Bonds (Downey
Community Hospital), Series 1993,
5.75%, 5-15-2015 ...................... 4,250 3,697,500
Community Redevelopment Agency of the City
of Palmdale, Restructured Single Family
Mortgage Revenue Bonds, Series 1986A,
8.0%, 3-1-2016 ........................ 3,000 3,596,250
Southern California Public Power Authority,
Multiple Project Revenue Bonds, 1989 Series,
6.75%, 7-1-2012 ....................... 3,455 3,528,419
Sacramento Municipal Utility District,
Electric Revenue Refunding Bonds,
1993 Series G,
6.5%, 9-1-2013 ........................ 2,500 2,559,375
City and County of San Francisco,
California, Sewer Revenue Refunding
Bonds, Series 1992,
5.5%, 10-1-2015 ....................... 2,000 1,780,000
Total ................................. 96,434,308
COLORADO - 3.67%
City and County of Denver, Colorado,
Airport System Revenue Bonds:
Series 1991A:
8.75%, 11-15-2023 ..................... 8,000 8,440,000
0.0%, 11-15-2003 ...................... 7,855 3,947,138
Series 1991D:
7.75%, 11-15-2013 ..................... 8,705 8,661,475
0.0%, 11-15-2003 ...................... 5,000 2,512,500
Series 1994A:
7.5%, 11-15-2006 ...................... 1,000 992,500
7.4%, 11-15-2005 ...................... 1,000 988,750
Morgan County, Colorado, Pollution Control
Refunding Revenue Bonds, 1993 Series A
(Public Service Company of Colorado
Project),
5.5%, 6-1-2012 ........................ 3,500 3,193,750
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
COLORADO (Continued)
Colorado Health Facilities Authority,
Revenue Bonds, Series 1994 (Sisters of
Charity Health Care Systems, Inc.),
5.25%, 5-15-2014 ...................... $ 2,000 $ 1,730,000
City of Aurora, Colorado, General
Obligation Water Refunding Bonds,
Series 1993,
4.75%, 11-1-2014 ...................... 2,000 1,602,500
The Poudre Valley Hospital District
Larimer County, Colorado, Hospital Revenue
Refunding Bonds, Series 1993,
4.85%, 12-1-2006 ...................... 1,720 1,543,700
Regional Transportation District (Colorado),
Weekly Adjustable/Fixed Rate, Special
Passenger Fare Revenue Bonds, Series 1989A,
3.65%, 6-1-99 ......................... 1,270 1,270,000
Total ................................. 34,882,313
CONNECTICUT - 0.59%
Eastern Connecticut Resource Recovery
Authority, Wheelabrator Technologies, Inc.,
5.5%, 1-1-2014 ........................ 6,750 5,619,375
DISTRICT OF COLUMBIA - 3.01%
Metropolitan Washington Airports Authority,
Airport System Revenue Bonds,
Series 1994A,
5.875%, 10-1-2015 ..................... 20,835 19,194,244
District of Columbia (Washington, D.C.),
University Revenue Bonds (The Howard
University Issue), Series 1990A,
7.25%, 10-1-2020 ...................... 5,000 5,368,750
Certificates of Participation, Series 1993,
Issued by Security Trust Company, N.A.,
7.3%, 1-1-2013 ........................ 4,000 4,040,000
Total ................................. 28,602,994
FLORIDA - 2.24%
Florida Municipal Power Agency, Stanton II
Project Refunding Revenue Bonds,
Series 1993,
4.5%, 10-1-2016 ....................... 10,600 8,082,500
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
FLORIDA (Continued)
Dade County, Florida, Aviation Facilities
Revenue Bonds, 1994 Series C,
6.125%, 10-1-2014 ..................... $ 5,590 $ 5,450,250
Lake County, Florida, Resource Recovery
Industrial Development Refunding Revenue
Bonds (NRG/Recovery Group Project),
Series 1993A,
5.85%, 10-1-2009 ...................... 3,825 3,423,375
State of Florida, Full Faith and Credit,
State Board of Education, Public Education
Capital Outlay Bonds, 1992 Series E,
5.1%, 6-1-2014 ........................ 2,285 1,945,106
Orlando Utilities Commission, Water and
Electric Subordinated Revenue Refunding
Bonds, Series 1994A,
5.0%, 10-1-2012 ....................... 1,500 1,265,625
City of Gainesville, Florida, Utilities
System Revenue Bonds, 1992 Series A,
6.5%, 10-1-2012 ....................... 1,085 1,109,413
Total ................................. 21,276,269
GEORGIA - 5.35%
Municipal Electric Authority of Georgia:
Project One Special Obligation Bonds,
Fifth Crossover Series,
6.4%, 1-1-2013 ........................ 15,500 15,655,000
General Power Revenue Bonds, 1992B Series:
8.25%, 1-1-2011 ....................... 8,700 10,222,500
6.2%, 1-1-2010 ........................ 3,495 3,433,838
City of Atlanta, Airport Facilities
Revenue Bonds, Series 1990,
6.5%, 1-1-2013 ........................ 11,200 11,256,000
Fulton County School District (Georgia),
General Obligation Refunding Bonds,
Series 1991,
6.375%, 5-1-2010 ...................... 5,000 5,125,000
Development Authority of Monroe County (Georgia),
Pollution Control Revenue Bonds (Oglethorpe
Power Corporation Scherer Project),
Series 1992A,
6.75%, 1-1-2010 ....................... 4,000 4,155,000
Downtown Development Authority of the
City of Atlanta (Georgia), Refunding
Revenue Bonds (Underground Atlanta
Project), Series 1992,
6.25%, 10-1-2012 ...................... 1,000 990,000
Total ................................. 50,837,338
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
HAWAII - 2.56%
State of Hawaii, Airports System Revenue
Bonds, Second Series of 1991:
6.9%, 7-1-2012 ........................ $20,195 $ 20,775,606
7.0%, 7-1-2018 ........................ 3,495 3,547,425
Total ................................. 24,323,031
IDAHO - 0.74%
Idaho Health Facilities Authority, Hospital
Revenue Refunding Bonds, Series 1992
(IHC Hospitals, Inc.), Indexed Inverse
Floating/Fixed Term Bonds,
8.21%, 2-15-2021 ...................... 6,000 6,105,000
Southern Idaho Regional Solid Waste
District, Certificates of Participation,
Series 1993,
5.45%, 11-1-2013 ...................... 1,000 935,000
Total ................................. 7,040,000
ILLINOIS - 4.75%
City of Chicago, Chicago-O'Hare
International Airport:
General Airport Revenue Bonds,
1992 Series A:
6.0%, 1-1-2018 ........................ 7,000 6,405,000
6.0%, 1-1-2012 ........................ 5,000 4,656,250
General Airport Revenue Refunding
Bonds, 1993 Series A,
5.0%, 1-1-2016 ........................ 6,000 4,837,500
Village Of Sauget, Illinois, Variable
Rate Demand Pollution Control Revenue
Refunding Bonds (Monsanto Company
Project), Series 1993,
3.7%, 5-1-2028 ........................ 12,585 12,585,000
Illinois Health Facilities Authority
(Lutheran General HealthSystem):
Indexed Inverse Floating Rate,
Revenue Bonds, Series 1993B,
6.88%, 4-1-2014 ....................... 4,100 3,936,000
Revenue Refunding Bonds, Series 1993C,
7.0%, 4-1-2008 ........................ 2,000 2,107,500
Metropolitan Pier and Exposition Authority
(Illinois), McCormick Place Expansion
Project Bonds, Series 1992A,
8.5%, 6-15-2006 ....................... 5,000 5,962,500
Illinois Educational Facilities Authority,
Revenue Refunding Bonds, Loyola
University of Chicago, Series 1993B,
Structured Yield Curve Notes,
5.62%, 7-1-2014 ....................... 4,000 3,735,000
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
ILLINOIS (Continued)
City of Chicago, Chicago Midway Airport
Revenue Bonds, 1994 Series A,
6.25%, 1-1-2014 ....................... $ 1,000 $ 971,250
Total ................................. 45,196,000
INDIANA - 2.52%
Indiana State Office Building Commission,
Capitol Complex Revenue Bonds:
Series 1990B (State Office Building
I Facility),
7.4%, 7-1-2015 ........................ 8,000 8,870,000
Series 1990A (Senate Avenue Parking Facility),
7.4%, 7-1-2015 ........................ 4,775 5,294,281
Indiana Transportation Finance Authority,
Highway Revenue Bonds, Series 1990A,
7.25%, 6-1-2015 ....................... 9,000 9,753,750
Total ................................. 23,918,031
IOWA - 0.90%
Muscatine County, Iowa, Variable Rate Demand
Pollution Control Revenue Refunding Bonds
(Monsanto Company Project), Series 1992,
Adjustable Rate Bond,
3.7%, 10-1-2007 ....................... 8,600 8,600,000
KANSAS - 1.73%
City of Shawnee, Kansas, Variable Rate
Demand Industrial Revenue Bonds, Series
December 1, 1984 (Shawnee Village
Associates Project),
3.8%, 12-1-2009 ....................... 4,000 4,000,000
Unified School District No. 233, Johnson
County, Kansas (Olathe), General
Obligation School Improvement and
Refunding Bonds, Series 1994,
5.625%, 9-1-2014 ...................... 3,880 3,579,300
State of Kansas, Department of
Transportation, Highway Revenue Bonds,
Series 1993,
5.375%, 3-1-2013 ...................... 3,000 2,707,500
Unified School District No. 345,
Shawnee County, Kansas (Seaman),
General Obligation Bonds, Series 1994:
5.5%, 9-1-2013 ........................ 1,345 1,237,400
5.5%, 9-1-2012 ........................ 1,270 1,177,925
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
KANSAS (Continued)
Unified School District No. 265, Sedgwick
County, Kansas (Goddard), General
Obligation School Building Bonds, Series 1994:
Serial Bonds,
5.75%, 10-1-2011 ...................... $ 1,135 $ 1,072,575
Term Bonds,
5.5%, 10-1-2013 ....................... 1,185 1,082,794
Sedgwick County, Kansas and Shawnee County,
Kansas, Collateralized Single Family
Mortgage Revenue Bonds (GNMA Certificates),
Series 1994A-II,
8.05%, 5-1-2024 ....................... 1,500 1,595,625
Total ................................. 16,453,119
KENTUCKY - 0.19%
Kentucky Housing Corporation, Housing
Revenue Bonds, 1993 Series B,
5.4%, 7-1-2014 ........................ 2,000 1,765,000
LOUISIANA - 1.34%
Memorial Hospital Service District of the
Parish of Calcasieu, State of Louisiana,
Hospital Revenue Bonds (Lake Charles
Memorial Hospital Project), Series 1993,
Adjustable Rate Bond,
3.85%, 12-1-2018 (A) .................. 12,775 12,775,000
MARYLAND - 0.94%
Northeast Maryland Waste Disposal Authority,
Solid Waste Revenue Bonds (Montgomery
County Resource Recovery Project),
Series 1993A:
6.0%, 7-1-2006 ........................ 7,170 6,954,900
6.2%, 7-1-2010 ........................ 2,080 1,983,800
Total ................................. 8,938,700
MASSACHUSETTS - 6.71%
Massachusetts Water Resources Authority:
General Revenue Bonds:
1992 Series B,
5.5%, 11-1-2015 ....................... 12,135 10,693,969
1992 Series A,
6.5%, 7-15-2019 ....................... 6,740 6,765,275
General Revenue Refunding Bonds,
1993 Series B,
5.25%, 3-1-2013 ....................... 5,000 4,331,250
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MASSACHUSETTS (Continued)
Massachusetts Bay Transportation Authority,
General Transportation System Bonds:
1992 Series C,
6.1%, 3-1-2013 ........................ 11,000 10,628,750
1992 Series B Refunding,
6.2%, 3-1-2016 ........................ $10,300 $ 9,978,125
City of Boston, Massachusetts, Industrial
Development Financing Authority, Sewage
Facility Revenue Bonds (Harbor Electric
Energy Company Project), 1991 Series,
7.375%, 5-15-2015 ..................... 6,900 7,193,250
Town of Agawam, Massachusetts, Resource
Recovery Revenue Bonds (Springfield
Resource Recovery Project),
1986 Series,
8.5%, 12-1-2008 ....................... 4,150 4,430,125
The Commonwealth of Massachusetts,
General Obligation Refunding Bonds,
1992 Series B,
6.5%, 8-1-2008 ........................ 3,115 3,220,131
Massachusetts Municipal Wholesale
Electric Company, Power Supply System
Revenue Bonds, 1992 Series B,
6.75%, 7-1-2017 ....................... 2,680 2,686,700
Boston Water and Sewer Commission,
General Revenue Bonds, 1992 Series A
(Senior Series),
5.75%, 11-1-2013 ...................... 1,575 1,464,750
City of Boston, Massachusetts, General
Obligation Bonds, 1994 Series B,
5.875%, 8-1-2012 ...................... 1,490 1,434,125
Massachusetts Industrial Finance Agency,
Pollution Control Revenue Refunding
Bonds, 1993 Series (Eastern Edison
Company Project),
5.875%, 8-1-2008 ...................... 1,000 937,500
Total ................................. 63,763,950
MICHIGAN - 4.54%
Michigan Strategic Fund, Limited Obligation
Refunding Revenue Bonds (The Detroit Edison
Company Pollution Control Bonds Project),
Collateralized Series 1991 AA,
6.95%, 5-1-2011 ....................... 9,000 9,607,500
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MICHIGAN (Continued)
Charter County of Wayne, Michigan, Detroit
Metropolitan Wayne County Airport:
Series 1993B,
5.25%, 12-1-2013 ...................... $ 7,340 $ 6,294,050
Series 1993A,
5.25%, 12-1-2013 ...................... 2,750 2,358,125
State Building Authority, State of Michigan,
1993 Revenue Refunding Bonds, Series I,
5.3%, 10-1-2016 ....................... 10,000 8,625,000
School District of the City of Detroit,
Wayne County, Michigan, School Building
and Site Improvement and Refunding Bonds
(Unlimited Tax General Obligation),
Series 1993:
5.4%, 5-1-2013 ........................ 4,000 3,495,000
5.0%, 5-1-2011 ........................ 1,885 1,592,825
The Economic Development Corporation of
the City of Detroit, Resource Recovery
Revenue Bonds, Series 1991A,
6.875%, 5-1-2009 ...................... 3,765 3,920,306
Michigan State Hospital Finance Authority:
Hospital Revenue Refunding Bonds
(McLaren Obligated Group),
Series 1993A,
5.375%, 10-15-2013 .................... 3,130 2,664,413
Hospital Revenue Bonds (Holland Community
Hospital), Series 1993,
5.25%, 1-1-2010 ....................... 1,200 1,032,000
Regents of the University of Michigan,
Hospital Revenue Refunding Bonds,
Series 1993A,
5.75%, 12-1-2012 ...................... 2,000 1,862,500
City of Detroit, Michigan, Convention
Facility Limited Tax Revenue Refunding
Bonds (Cobo Hall Expansion Project),
Series 1993,
5.25%, 9-30-2012 ...................... 2,000 1,710,000
Total ................................. 43,161,719
MINNESOTA - 0.47%
City of Rochester, Minnesota, Health
Care Facilities Revenue Bonds (Mayo
Foundation/Mayo Medical Center),
Series 1992D, Indexed Inverse
Floating/Fixed Term Bonds,
7.7%, 11-15-2009 ...................... 4,500 4,455,000
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MISSISSIPPI - 1.34%
Lowndes County, Mississippi, Solid Waste
Disposal and Pollution Control
Refunding Revenue Bonds (Weyerhaeuser
Company Project), Series 1992B, Indexed
Inverse Floating/Fixed Term Bonds,
8.21%, 4-1-2022 ....................... $11,000 $ 11,137,500
Mississippi Home Corporation, Single Family
Mortgage Revenue Bonds (Access Program),
Series 1994D,
8.1%, 12-1-2024 ....................... 1,500 1,631,250
Total ................................. 12,768,750
MISSOURI - 1.83%
St. Louis County, Missouri, Regional
Convention and Sports Complex Authority,
Convention and Sports Facility Project
and Refunding Bonds, Series B 1993:
5.6%, 8-15-2008 ....................... 2,130 1,940,963
5.25%, 8-15-2005 ...................... 1,295 1,186,544
5.5%, 8-15-2007 ....................... 1,270 1,157,288
School District of Kansas City, Missouri,
Building Corporation, Insured Leasehold
Revenue Bonds, Series 1993 (The School
District of Kansas City, Missouri,
Capital Improvements Project),
5.0%, 2-1-2014 ........................ 5,000 4,237,500
Missouri Economic Development, Export
and Infrastructure Board, Lease Revenue
Bonds:
Missouri Department of Social Service
Office Facility, Series 1992,
6.3%, 12-1-2008 ....................... 2,000 2,032,500
Missouri Division of Professional
Registration Office Building,
Series 1992,
6.3%, 12-1-2008 ....................... 1,000 1,021,250
Health and Education Facilities Authority
of the State of Missouri, Health Facilities
Revenue Bonds (Health Midwest), Menorah
Medical Center,
6.25%, 6-1-2014 ....................... 2,500 2,462,500
State of Missouri, Certificates of
Participation (Acute Care Psychiatric
Hospital Project), Series A 1994,
5.625%, 10-15-2014 .................... 2,200 1,996,500
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MISSOURI (Continued)
Missouri Higher Education Loan Authority
(A Public Instrumentality and Body
Corporate and Politic of the State of
Missouri), Student Loan Revenue Bonds,
Subordinate Series 1994A,
5.45%, 2-15-2009 ...................... $ 1,500 $ 1,365,000
Total ................................. 17,400,045
MONTANA - 0.23%
Anaconda-Deer Lodge County, Montana,
Solid Waste Facility Revenue Bonds
(ARCO-Anaconda Smelter Site Project),
Series 1992,
6.375%, 10-1-2016 ..................... 2,250 2,162,813
NEVADA - 0.15%
Nevada Housing Division, Single Family
Program Senior Bonds, 1993 Issue C,
5.85%, 10-1-2015 ...................... 1,575 1,447,031
NEW JERSEY - 2.26%
Pollution Control Financing Authority
of Camden County (Camden County, New
Jersey), Solid Waste Disposal and
Resource Recovery System Revenue Bonds:
Series B,
7.5%, 12-1-2009 ....................... 6,775 6,758,063
Series A,
7.5%, 12-1-2010 ....................... 5,500 5,458,750
New Jersey Economic Development Authority,
Revenue Bonds, (RWJ Health Care Corp. at
Hamilton Obligated Group Project),
Series 1994,
6.25%, 7-1-2011 ....................... 4,950 4,875,750
Middlesex County Utilities Authority,
Sewer Revenue Refunding Bonds, Series
1992A, Indexed Inverse Floating/Fixed
Term Bonds,
7.35%, 8-15-2010 ...................... 3,000 2,985,000
New Jersey Health Care Facilities Financing
Authority, Revenue Bonds, St. Clares
Riverside Medical Center Obligated
Group Issue, Series 1994,
5.75%, 7-1-2010 ....................... 1,515 1,446,825
Total ................................. 21,524,388
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW MEXICO - 0.94%
New Mexico Educational Assistance
Foundation, Student Loan Purchase Bonds:
Senior 1995 Series IV-A1,
7.05%, 3-1-2010 (B) ................... $ 6,485 $ 6,379,619
1994 Series II-B,
5.75%, 12-1-2008 ...................... 1,750 1,612,188
City of Santa Fe, New Mexico, Revenue
Bonds, Series 1994A,
6.25%, 6-1-2015 ....................... 1,000 985,000
Total ................................. 8,976,807
NEW YORK - 10.99%
The City of New York, General Obligation
Bonds:
Fiscal 1993 Series B,
7.0%, 10-1-2011 ....................... 15,000 15,581,250
Fiscal 1993 Series A,
6.375%, 8-1-2007 ...................... 6,000 5,835,000
Fiscal 1993 Series H,
7.0%, 2-1-2022 ........................ 3,000 3,172,500
Fiscal 1994 Series G,
5.6%, 8-1-2006 ........................ 3,400 3,115,250
New York City Municipal Water Finance
Authority, Water and Sewer System
Revenue Bonds:
Fiscal 1993 Series A:
6.0%, 6-15-2010 ....................... 12,000 11,715,000
6.0%, 6-15-2009 ....................... 6,500 6,386,250
Fiscal 1994 Series F,
5.5%, 6-15-2015 ....................... 4,000 3,575,000
Fiscal 1994 Series B,
5.375%, 6-15-2007 ..................... 1,750 1,610,000
New York State Environmental Facilities
Corporation, State Water Pollution
Control, Revolving Fund Revenue Bonds,
Series 1994 A (New York City Municipal
Water Finance Authority Project)
(Second Resolution Bonds):
5.75%, 6-15-2012 ...................... 10,000 9,475,000
5.75%, 6-15-2011 ...................... 5,000 4,768,750
New York State Medical Care Facilities,
Finance Agency Mental Health Services
Facilities, Improvement Revenue Bonds,
1993 Series F Refunding,
5.375%, 2-15-2014 ..................... 12,000 10,440,000
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW YORK (Continued)
Metropolitan Transportation Authority,
Transit Facilities Revenue Bonds,
Series I,
7.0%, 7-1-2009 ........................ $ 9,000 $ 9,798,750
Dormitory Authority of the State
of New York:
City University Refunding Bonds,
5.875%, 5-15-2011...................... 4,655 4,486,256
State University Educational Facilities,
Revenue Bonds, Series 1993B:
7.5%, 5-15-2011 ....................... 2,000 2,215,000
5.5%, 5-15-2008 ....................... 1,000 896,250
Triborough Bridge and Tunnel Authority,
General Purpose Revenue Bonds,
Series Q,
6.75%, 1-1-2009 ....................... 4,700 4,958,500
New York State Urban Development Corporation,
Correctional Capital Facilities Revenue
Bonds, 1993A Refunding Series,
5.5%, 1-1-2014......................... 4,000 3,505,000
New York Local Government Assistance
Corporation (A Public Benefit Corporation
of the State of New York),
Series 1993D Bonds,
5.375%, 4-1-2014 ...................... 2,370 2,076,713
New York State Thruway Authority, Local
Highway and Bridge Service Contract
Bonds, Series 1994,
5.75%, 4-1-2013 ....................... 1,000 940,000
Total ................................. 104,550,469
NORTH CAROLINA - 4.54%
North Carolina Eastern Municipal Power
Agency, Power System Revenue Bonds:
Refunding Series 1993 B,
7.0%, 1-1-2008 ........................ 30,000 31,950,000
Refunding Series 1993 C,
7.0%, 1-1-2013 ........................ 3,500 3,596,250
North Carolina Municipal Power Agency
Number 1, Catawba Electric Revenue Bonds,
Series 1992,
5.75%, 1-1-2015 ....................... 5,000 4,612,500
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NORTH CAROLINA (Continued)
Person County, North Carolina, Industrial
Facility and Pollution Control Finance
Authority, Revenue Solid Waste Disposal
Bonds, Series 1986,
2.65%, 11-1-2016....................... $ 3,000 $ 3,000,000
Total.................................. 43,158,750
OHIO - 2.22%
Toledo-Lucas County Port Authority, Port
Facilities Refunding Revenue Bonds,
Series 1993 (Cargill, Incorporated Project),
5.9%, 12-1-2015 ....................... 5,145 4,771,988
City of Cleveland, Ohio, Airport
System Improvement Revenue Bonds,
Series 1994A,
5.75%, 1-1-2015 ....................... 4,700 4,318,125
Hamilton County, Ohio, Sewer System
Improvement and Refunding Revenue
Bonds, 1993 Series A (The Metropolitan
Sewer District of Greater Cincinnati),
5.0%, 12-1-2014 ....................... 4,500 3,825,000
1993 Beneficial Interest Certificates
(Belleville Hydroelectric Project),
Ohio Municipal Electric Generation
Agency Joint Venture 5,
5.375%, 2-15-2013 ..................... 2,750 2,461,250
State of Ohio, Ohio Air Quality Development
Authority, Air Quality Development Revenue
Refunding Bonds (JMG Funding, Limited
Partnership Project), Series 1994,
6.375%, 1-1-2029 ...................... 2,500 2,431,250
County of Montgomery, Ohio, Water Revenue
Refunding Bonds, Greater Moraine-BeaverCreek
Sewer District, Series 1993,
5.3%, 11-15-2007 ...................... 1,890 1,786,050
City of Moraine, Ohio, Solid Waste Disposal
Revenue Bonds (General Motors Corporation
Project), Series 1994,
6.75%, 7-1-2014 ....................... 1,550 1,546,125
Total ................................. 21,139,788
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
OKLAHOMA - 0.55%
Trustees of the Tulsa Municipal Airport
Trust, Revenue Bonds, Series 1985,
9.5%, 6-1-2020......................... $ 5,000 $ 5,275,000
OREGON - 0.25%
State of Oregon, Housing and Community
Services Department, Mortgage Revenue
Bonds, Single-Family Mortgage Program,
1992 Series C,
5.5%, 7-1-2013 ........................ 1,500 1,359,375
City of Portland, Oregon, Sewer System
Revenue Bonds, 1994 Series A,
6.2%, 6-1-2012 ........................ 1,000 981,250
Total ................................. 2,340,625
PENNSYLVANIA - 1.78%
Certificates of Participation, Series
1993A, Commonwealth of Pennsylvania,
Fixed Rate Certificates,
5.4%, 7-1-2008 ........................ 5,000 4,618,750
Washington County Hospital Authority
(Commonwealth of Pennsylvania), Hospital
Revenue Bonds, Series of 1993 (The
Washington Hospital Project),
5.5%, 7-1-2012 ........................ 5,000 4,518,750
The Hospitals and Higher Education
Facilities Authority of Philadelphia,
Refunding Revenue Bonds, Saint Agnes
Medical Center Project (FHA Insured
Mortgage), Series 1991,
7.25%, 8-15-2031 ...................... 3,750 3,932,813
Montgomery County Industrial Development
Authority (Pennsylvania), Resource
Recovery Revenue Bonds (Montgomery
County Project), Series 1989,
7.5%, 1-1-2012 ........................ 3,750 3,871,875
Total ................................. 16,942,188
RHODE ISLAND - 0.09%
Rhode Island Port Authority and Economic
Development Corporation, Airport Revenue
Bonds, 1993 Series A,
5.125%, 7-1-2009 ...................... 1,000 862,500
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
SOUTH CAROLINA - 1.56%
Calhoun County, South Carolina, Solid
Waste Disposal Facilities Revenue Bonds
(Eastman Kodak Company Project),
Series 1992,
6.75%, 5-1-2017 ....................... $10,895 $ 11,126,519
South Carolina State Education
Assistance Authority, Guaranteed Student
Loan Revenue and Refunding Bonds,
1993 Series,
5.55%, 9-1-2008 ....................... 4,000 3,700,000
Total ................................. 14,826,519
TENNESSEE - 1.15%
Tennessee Housing Development Agency,
Mortgage Finance Program Bonds:
1993 Series A,
5.85%, 7-1-2013 ....................... 4,820 4,542,850
1994 Series B,
6.45%, 7-1-2014 ....................... 3,015 2,969,775
Memphis-Shelby County Airport Authority,
Airport Revenue Refunding Bonds,
Series 1993B,
6.5%, 2-15-2009 ....................... 3,335 3,393,363
Total ................................. 10,905,988
TEXAS - 4.99%
Harris County, Texas, Toll Road Senior Lein
Revenue Refunding Bonds, Series 1994,
5.0%, 8-15-2016 ....................... 8,900 7,286,875
Alliance Airport Authority, Inc.,
Special Facilities Revenue Bonds,
Series 1991 (American Airlines, Inc.
Project),
7.0%, 12-1-2011 ....................... 6,850 6,541,750
Lubbock Health Facilities Development
Corporation, Hospital Revenue Bonds
(Methodist Hospital, Lubbock, Texas
Project),
6.75%, 12-1-2010 ...................... 5,000 5,212,500
Harris County Health Facilities Development
Corporation, Hospital Revenue Bonds
(St. Luke's Episcopal Hospital Project),
Series 1991A,
6.75%, 2-15-2021 ...................... 5,000 5,137,500
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
TEXAS (Continued)
Port of Corpus Christi, Authority of
Nueces County, Texas, Pollution Control
Revenue Bonds (Hoechst Celanese Corporation
Project), Series 1992,
6.875%, 4-1-2017 ...................... $ 4,500 $ 4,640,625
Texas National Research Laboratory Commission
Financing Corporation, Lease Revenue
Bonds, Series 1991 (Superconducting
Super Collider Project),
6.75%, 12-1-2004 ...................... 3,945 3,999,244
Gulf Coast Waste Disposal Authority,
Solid Waste Disposal Revenue Refunding
Bonds, Series 1994 (The Quaker Oats
Company Project),
3.7%, 4-1-2013 ........................ 3,950 3,950,000
City of Houston, Texas, Water Conveyance
System Contract, Certificates of
Participation:
Series 1993F,
7.2%, 12-15-2007 ...................... 1,500 1,655,625
Series 1993B,
7.0%, 12-15-2007 ...................... 1,000 1,085,000
Series 1993C,
7.0%, 12-15-2007 ...................... 1,000 1,085,000
Brazos River Authority (Texas), Variable
Rate Demand Pollution Control Revenue
Refunding Bonds (Monsanto Company Project),
Series 1994, Adjustable Rate Bond,
3.7%, 2-1-2004......................... 2,575 2,575,000
Brenham Independent School District,
(Washington and Austin Counties,
Texas), Unlimited Tax School Building
Bonds, Series 1994,
5.25%, 2-15-2013 ...................... 1,920 1,687,200
Metro Health Facilities Development
Corporation (Sherman, Texas), Hospital
Revenue Bonds (The Wilson N. Jones
Memorial Hospital), Series 1993,
5.5%, 1-1-2012 ........................ 1,500 1,325,625
Texas Public Finance Authority, Texas
State Technical College System, Building
Revenue and Refunding Revenue Bonds,
Series 1992,
6.25%, 8-1-2009 ....................... 1,250 1,250,000
Total ................................. 47,431,944
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
UTAH - 0.10%
Utah Housing Finance Agency, Single Family
Mortgage Subordinate Bonds, 1993 Issue B,
5.7%, 7-1-2013 ........................ $ 1,000 $ 907,500
VIRGINIA - 1.85%
Upper Occoquan Sewage Authority (Virginia),
Regional Sewerage System Revenue
Refunding Bonds, Series of 1993,
5.0%, 7-1-2015 ........................ 9,000 7,492,500
Virginia Education Loan Authority (A
Political Subdivision of the Commonwealth
of Virginia), Student Loan Program
Revenue Bonds, Series C Bonds,
5.75%, 9-1-2010 ....................... 6,660 6,185,475
Southeastern Public Service Authority of
Virginia:
Senior Revenue Bonds, Series 1993 (Regional
Solid Waste System),
5.95%, 7-1-2009 ....................... 1,500 1,404,375
Senior Revenue Refunding Bonds,
Series 1993A (Regional Solid Waste System),
5.125%, 7-1-2013....................... 1,000 858,750
City of Chesapeake, Virginia, Water
and Sewer System Revenue Refunding
Bonds, Series of 1994,
5.1%, 5-1-2014 ........................ 2,000 1,680,000
Total ................................. 17,621,100
WASHINGTON - 7.73%
Washington Public Power Supply System:
Nuclear Project No. 3, Refunding Revenue
Bonds, Series 1989B,
7.125%, 7-1-2016 ...................... 20,750 21,969,063
Nuclear Project No. 1, Refunding Revenue
Bonds:
Series 1989B,
7.125%, 7-1-2016 ...................... 8,200 8,681,750
Series 1990B,
7.25%, 7-1-2009 ....................... 3,055 3,295,581
Nuclear Project No. 3, Refunding Revenue
Bonds, Series 1993C,
5.375%, 7-1-2015 ...................... 11,000 9,308,750
Nuclear Project No. 2, Refunding Revenue
Bonds, Series 1990A,
7.25%, 7-1-2006 ....................... 6,475 7,049,656
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
WASHINGTON (Continued)
Public Utility District No. 1 of
Snohomish County, Washington, Generation
System Revenue Bonds, Series 1993B,
5.7%, 1-1-2014 ........................ $ 6,500 $ 5,825,625
State of Washington, Various Purpose General
Obligation Bonds, Series 1990A,
6.75%, 2-1-2015 ....................... 4,995 5,232,263
Washington Health Care Facilities Authority,
Revenue Bonds:
Refunding Series 1993 (Franciscan
Health System/St. Joseph Hospital
and Health Care Center, Tacoma),
5.5%, 1-1-2009 ........................ 2,785 2,572,644
Series 1993
(Highline Community Hospital, Seattle),
5.5%, 8-15-2014 ....................... 1,500 1,310,625
Public Utility District No. 1 of Chelan
County, Washington, Chelan Hydro
Consolidated System Revenue Bonds,
Series 1993E:
5.7%, 7-1-2009 ........................ 2,630 2,439,325
5.7%, 7-1-2008 ........................ 1,500 1,411,875
Industrial Development Corporation of the
Port of Longview (Washington), Solid
Waste Disposal Revenue Bonds (Weyerhaeuser
Company Project), Series 1992,
6.875%, 10-1-2008 ..................... 2,250 2,354,063
Port of Seattle, Washington, Revenue Bonds,
Series 1992B,
6.7%, 11-1-2010 ...................... 2,000 2,025,000
Total ................................. 73,476,220
WISCONSIN - 0.38%
Wisconsin Housing and Economic Development
Authority, Home Ownership Revenue Bonds,
1990 Series E,
8.0%, 3-1-2021 ........................ 3,500 3,661,875
WYOMING - 0.24%
Wyoming Community Development Authority,
Single Family Mortgage Bonds (Federally
Insured or Guaranteed Mortgage Loans),
6.875%, 6-1-2014 ...................... 2,210 2,259,725
TOTAL MUNICIPAL BONDS - 100.21% $952,911,454
(Cost: $963,634,552)
TOTAL SHORT-TERM SECURITIES - 0.89% $ 8,496,060
(Cost: $8,496,060)
See Notes to Schedule of Investments on page 25.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1994
Value
TOTAL INVESTMENT SECURITIES - 101.10% $961,407,514
(Cost: $972,130,612)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.10%) (10,455,186)
NET ASSETS - 100.00% $950,952,328
Notes to Schedule of Investments
(A) A portion of this security has been designated as collateral for the
delayed delivery security.
(B) Delayed delivery security.
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 MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1994
Assets
Investment securities-at value
(Notes 1 and 3) ............................... $961,407,514
Cash ........................................... 11,341
Receivables:
Interest ...................................... 17,099,519
Investment securities sold .................... 8,275,597
Fund shares sold .............................. 675,055
Prepaid insurance premium ...................... 37,752
------------
Total assets ................................ 987,506,778
------------
Liabilities
Payable for investment securities purchased .... 33,854,357
Payable for Fund shares redeemed ............... 2,426,575
Accrued service fee ............................ 181,043
Accrued transfer agency and dividend disbursing 52,912
Accrued accounting services fee ................ 7,083
Other .......................................... 32,480
------------
Total liabilities ........................... 36,554,450
------------
Total net assets ........................... $950,952,328
============
Net Assets
$1.00 par value capital stock, authorized --
400,000,000; shares outstanding -- 137,671,566
Capital stock ................................. $137,671,566
Additional paid-in capital .................... 818,298,915
Accumulated undistributed income:
Accumulated undistributed net investment
income ...................................... 1,055,699
Accumulated undistributed net realized gain on
investment transactions ..................... 4,649,246
Net unrealized depreciation in value of
investments at end of period ................ (10,723,098)
------------
Net assets applicable to outstanding units
of capital ................................. $950,952,328
============
Net asset value per share (net assets divided by
shares outstanding) ............................ $6.91
Sales load (offering price x 4.25%)............... .31
-----
Offering price per share (net asset value divided
by 95.75%) ...................................... $7.22
=====
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS
For the Fiscal Year Ended SEPTEMBER 30, 1994
Investment Income
Interest (taxable portion - $472,638) ............ $ 58,917,247
------------
Expenses (Note 2):
Investment management fee ....................... 4,531,669
Service fee ..................................... 880,375
Transfer agency and dividend disbursing ......... 691,710
Accounting services fee ......................... 92,500
Custodian fees .................................. 56,835
Audit fees ...................................... 43,551
Legal fees ...................................... 19,213
Other ........................................... 199,601
------------
Total expenses ................................ 6,515,454
------------
Net investment income ........................ 52,401,793
------------
Realized and Unrealized Gain (Loss) on Investments
Realized net gain on securities .................. 11,348,538
Realized net gain on futures contracts closed .... 2,185,781
Realized net gain on put options purchased ........ 584,370
------------
Net realized gain on investments ................ 14,118,689
Unrealized depreciation in value of securities
during the period................................ (107,526,858)
------------
Net loss on investments ....................... (93,408,169)
------------
Net decrease in net assets resulting
from operations ............................ $(41,006,376)
============
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the fiscal year ended
September 30,
--------------------------------
1994 1993
-------------- --------------
Increase (Decrease) in Net Assets
Operations:
Net investment income.............. $ 52,401,793 $ 51,933,369
Realized net gain on investments... 14,118,689 26,630,314
Unrealized appreciation
(depreciation) .................. (107,526,858) 57,525,709
-------------- --------------
Net increase (decrease) in net
assets resulting from
operations ..................... (41,006,376) 136,089,392
-------------- --------------
Dividends to shareholders from:*
Net investment income ............. (52,309,180) (51,122,560)
Realized gains on securities
transactions .................... (34,570,958) (27,984,514)
-------------- --------------
(86,880,138) (79,107,074)
-------------- --------------
Capital share transactions:
Proceeds from sale of shares
(9,645,029 and 16,974,075
shares, respectively) .......... 71,488,819 127,188,027
Proceeds from reinvestment of
dividends and/or capital gains
distribution (10,027,100 and
8,990,841 shares, respectively) .. 73,910,210 66,136,852
Payments for shares redeemed
(16,830,264 and 11,337,453
shares, respectively) ........... (121,994,288) (84,877,211)
-------------- --------------
Net increase in net assets
resulting from capital
share transactions ............. 23,404,741 108,447,668
-------------- --------------
Total increase (decrease) ...... (104,481,773) 165,429,986
Net Assets
Beginning of period ................ 1,055,434,101 890,004,115
-------------- --------------
End of period, including
undistributed net investment
income of $1,055,699 and
$963,086, respectively ............$ 950,952,328 $1,055,434,101
============== ==============
*See "Financial Highlights" on page 29.
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
For a Share of Capital Stock Outstanding
Throughout Each Period:
For the fiscal year ended
September 30,
------------------------------------
1994 1993 1992 1991 1990
------ ------ ------ ------ ------
Net asset value,
beginning of period $7.83 $7.40 $7.18 $6.66 $7.07
----- ----- ----- ----- -----
Income from investment
operations:
Net investment
income........... .38 .41 .43 .45 .47
Net realized and
unrealized gain
(loss) on
investments...... (0.67) .65 .35 .52 (0.16)
----- ----- ----- ----- -----
Total from investment
operations ........ (0.29) 1.06 .78 .97 .31
----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment
income........... (0.38) (0.40) (0.43) (0.45) (0.49)
Distribution from
capital gains.... (0.25) (0.23) (0.13) (0.00) (0.23)
----- ----- ----- ----- -----
Total distributions. (0.63) (0.63) (0.56) (0.45) (0.72)
----- ----- ----- ----- -----
Net asset value,
end of period ..... $6.91 $7.83 $7.40 $7.18 $6.66
===== ===== ===== ===== =====
Total return*....... -3.91% 15.15% 11.41% 14.97% 4.46%
Net assets, end of
period (000
omitted) ......... $950,952 $1,055,434$890,004$769,122$648,546
Ratio of expenses to
average net assets 0.64% 0.56% 0.57% 0.57% 0.57%
Ratio of net investment
income to average
net assets ........ 5.17% 5.38% 5.92% 6.47% 6.82%
Portfolio
turnover rate ..... 62.61% 94.51% 125.44%144.36% 181.25%
*Total return calculated without taking into account the sales load
deducted on an initial purchase.
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 1 -- Significant Accounting Policies
United Municipal Bond 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 -- Municipal bonds and the taxable obligations in the
Fund's investment portfolio are not listed or traded on any securities
exchange. Therefore, municipal bonds are valued using prices quoted by
Muller and Company, a dealer in bonds which offers a pricing service.
Short-term debt securities, whether taxable or nontaxable, 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 by the Internal
Revenue Code) and premiums on the purchase of bonds are amortized for both
financial and tax reporting purposes over the remaining lives of the bonds.
Interest income is recorded on the accrual basis. See Note 3 -- Investment
Security Transactions.
C. Federal income taxes -- The Fund intends to distribute all of its net
investment income and capital gains to its shareholders and otherwise
qualify as a regulated investment company under the Internal Revenue Code.
The Fund intends to pay distributions as required to avoid imposition of
excise tax. Accordingly, provision has not been made for Federal income
taxes. In addition, the Fund intends to meet requirements of the Internal
Revenue Code which will permit it to pay dividends from net investment
income, substantially all of which will be exempt from Federal income tax.
See Note 4 -- Federal Income Tax Matters.
D. Dividends and distributions -- Dividends and distributions to shareholders
are recorded by the Fund on the record date. During the period ended
September 30, 1994, the Fund adopted Statement of Position 93-2
Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies.
Accordingly, permanent book and tax basis differences relating to future
shareholder distributions have been reclassified to additional paid-in
capital. As of October 1, 1993, the cumulative effect of such differences
totaling $1,250 was reclassified from accumulated undistributed net
realized gain on investment transactions to additional paid-in capital.
Net investment income, net realized gains and net assets were not affected
by this change.
E. Futures -- See Note 5 -- Futures.
F. Options -- See Note 6 -- Options.
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 .03% 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 $11.2 billion of
combined net assets at September 30, 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
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
$2,263,180, out of which W&R paid sales commissions of $1,279,436 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 $37,992.
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 Security Transactions
Purchases of investment securities, other than U.S. Government and short-
term securities, aggregated $653,614,418 while proceeds from maturities and
sales aggregated $620,183,098. Purchases of options aggregated $996,880 while
proceeds aggregated $1,581,250. Purchases of short-term securities aggregated
$603,243,596 while proceeds from maturities and sales aggregated $606,808,035.
No U.S. Government securities were bought or sold during the period ended
September 30, 1994.
For Federal income tax purposes, cost of investments owned at September 30,
1994 was $972,643,339, resulting in net unrealized depreciation of $11,235,825,
of which $10,011,427 related to appreciated securities and $21,247,252 related
to depreciated securities.
NOTE 4 -- Federal Income Tax Matters
For Federal income tax purposes, the Fund realized capital gain net income
of $7,957,589 during the year ended September 30, 1994, of which a portion was
paid to shareholders during the period ended September 30, 1994. Remaining net
capital gains will be distributed to the Fund's shareholders.
NOTE 5 -- Futures
The Fund may engage in buying and selling interest rate futures contracts,
but only Debt Futures and Municipal Bond Index Futures. Upon entering into a
futures contract, the Fund is required to deposit, in a segregated account, an
amount of cash or U.S. Treasury Bills equal to a varying specified percentage of
the contract amount. This amount is known as the initial margin. Subsequent
payments ("variation margins") are made or received by the Fund each day,
dependent on the daily fluctuations in the value of the underlying debt security
or index. These changes in the variation margins are recorded by the Fund as
unrealized gains or losses. Upon the closing of the contracts, the cumulative
net change in the variation margin is recorded as realized gain or loss.
NOTE 6 -- Options
Options purchased by the Fund are accounted for in the same manner as
marketable portfolio securities. The cost of portfolio securities acquired
through the exercise of call options is increased by the premium paid to
purchase the call. The proceeds from securities sold through the exercise of
put options are decreased by the premium paid to purchase the put.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
United Municipal Bond 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 Municipal Bond Fund, Inc.
(the "Fund") at September 30, 1994, the results of its operations for the year
then 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 September 30, 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
October 31, 1994
<PAGE>
INCOME TAX INFORMATION
The amounts of the dividends and long-term capital gains shown in the table
below, multiplied by the number of shares owned by you on the record dates, will
give you the total amount to be reported in your Federal income tax returns for
the years in which they were received or reinvested.
Exempt Interest Dividends - The per-share amounts shown as Exempt Interest
represent the distribution of state and municipal bond interest and are exempt
from Federal income tax.
PER-SHARE AMOUNTS REPORTABLE AS:
------------------------------------------------------------
For Individuals For Corporations
----------------------------- ------------------------------
Record Ordinary Exempt Long-Term Non- Exempt Long-Term
Date Total Income InterestCapital GainQualifyingInterest Capital Gain
- ------ ----- ------- -------------------------------------- ------------
10-15-93$0.0330$0.0004 $0.0326 $0.0000 $0.0004 $0.0326 $0.0000
11-12-93 .0330 0.0004 .0326 .0000 .0004 .0326 .0000
12-17-93 .2870 .0998 .0316 .1556 .0998 .0316 .1556
1-14-94 .0310 .0004 .0306 .0000 .0004 .0306 .0000
2-11-94 .0310 .0004 .0306 .0000 .0004 .0306 .0000
3-11-94 .0310 .0004 .0306 .0000 .0004 .0306 .0000
4-15-94 .0310 .0004 .0306 .0000 .0004 .0306 .0000
5-13-94 .0310 .0004 .0306 .0000 .0004 .0306 .0000
6-17-94 .0310 .0004 .0306 .0000 .0004 .0306 .0000
7-15-94 .0310 .0004 .0306 .0000 .0004 .0306 .0000
8-12-94 .0310 .0004 .0306 .0000 .0004 .0306 .0000
9-16-94 .0320 .0005 .0315 .0000 .0005 .0315 .0000
-------------- ------- ------- ------- ------- -------
Totals $0.6330$0.1043 $0.3731 $0.1556 $0.1043 $0.3731 $0.1556
============== ======= ======= ======= ======= =======
NON-QUALIFYING DIVIDENDS - The non-qualifying portion of distributions
represents the taxable portion of dividends paid and does not qualify for the
dividends received deduction for corporations.
The tax status of dividends paid will be reported to you on Form 1099-DIV after
the close of the applicable calendar year.
Income from the Fund may be subject to the alternative minimum tax.
Shareholders are advised to consult with their tax advisors concerning the tax
treatment of dividends and distributions from the Fund.
<PAGE>
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
John M. Holliday, Vice President
Theodore W. Howard, Vice President and Treasurer
Sharon K. Pappas, Vice President and Secretary
Carl E. Sturgeon, Vice President
This report is submitted for the general information of the shareholders of
United Municipal Bond Fund, Inc. It is not authorized for distribution to
prospective investors in the Fund unless accompanied with or preceded by the
United Municipal Bond Fund, Inc. current prospectus.
<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
NUR1008A(9-94)
printed on recycled paper
