United
Municipal
Bond Fund,
Inc.
SEMIANNUAL
REPORT
---------------------------------------
For the six months ended March 31, 1994
<PAGE>
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>
PRESIDENT'S LETTER
- -----------------------------------------------------------------
MARCH 31, 1994
Dear Shareholder:
This report covers the investment performance of your Fund for the six
months ended March 31, 1994.
During the past six months, bond and equity markets have experienced
considerable fluctuations due to increases in interest rates and other economic
developments. These markets will continue to react to events that affect the
economy such as actions on health care proposals and many other issues.
We are hoping to see improved economies throughout the world over the next
year. We believe this would contribute to a favorable outlook for U.S. and
foreign securities.
Regardless of the rise and decline of markets, we will continue to use the
strengths and abilities we have developed over the past 55 years. These
include:
Professional portfolio management-- As investment professionals, we pay
careful attention to economic trends; we understand the business of each company
in which we invest; and we have the ability to judge the management of such
companies as they adapt to changes in the industries and markets they serve.
A widely diversified approach-- Our extensive experience managing a variety
of securities allows us to see the whole "investment pie." We use this broad
view to consider every investment opportunity available that meets your Fund's
objectives, and to take advantage of these opportunities in an effort to achieve
maximum return.
These are just two of the many attributes that we bring to the table when
making investment decisions. We believe your Fund is designed appropriately to
meet its investment objectives, and can reward the long-term investor. We never
forget that we are managing your money.
The following is a comprehensive look at your Fund's recent performance.
We believe you will find that the information continues to reflect our aim of
meeting the stated objectives of your Fund.
Respectfully,
Keith A. Tucker
President
<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 Six Months Ended March 31, 1994
- ---------------------------------------
DIVIDENDS PAID $ 0.19
======
CAPITAL GAINS DISTRIBUTION $ 0.26
======
NET ASSET VALUE ON
3/31/94 $7.01 adjusted to:$ 7.27(A)
9/30/93 7.83
------
CHANGE PER SHARE $(0.56)
======
This number includes the capital gains distribution of $0.26 paid in December
1993 added to the actual net asset value on March 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 3-31-94 -2.65% 1.68%
5-year period ended 3-31-94 8.34% 9.29%
10-year period ended 3-31-94 10.69% 11.17%
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 March 31, 1994, United Municipal Bond Fund, Inc. had net assets totaling
$985,543,010 invested in a diversified portfolio.
As a shareholder in United Municipal Bond Fund, Inc., for every $100 you had
invested on March 31, 1994, your Fund owned:
$20.53 Other Municipal Bonds
17.40 Public Power Revenue Bonds
13.58 Airport Revenue Bonds
13.00 General Obligation Bonds
9.94 Adjustable Rate Bonds
9.27 Water and Sewer Revenue Bonds
6.24 Hospital Revenue Bonds
6.01 Transportation Revenue Bonds
3.57 Resource Recovery Bonds
0.46 Cash and Cash Equivalents
1994 TAX YEAR TAXABLE EQUIVALENT YIELDS*
- ------------------------------------------------------------------
If your Taxable Income is:
Your
Marginal Equivalent Tax Free Yields
Joint Single Tax ------------------------
Return Return Bracket 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 above39.6% 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.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS
ALABAMA - 1.11%
City of Hoover, Alabama, General
Obligation Warrants, Series 1990-B,
8.0%, 3-1-2020 ........................ $ 9,455 $ 10,979,619
ARIZONA - 5.12%
Student Loan Acquisition Authority of
Arizona (A nonprofit corporation organized
pursuant to the laws of the State of
Arizona), Student Loan Revenue Bonds,
Senior Series 1993A-1,
2.45%, 12-1-2004 ...................... 14,230 14,230,000
City of Phoenix, Civic Improvement
Corporation, Wastewater System Lease
Revenue Bonds, Series 1993,
6.125%, 7-1-2014 ...................... 9,000 9,540,000
The Industrial Development Authority
of the City of Tuscon, Arizona,
Multifamily Housing Revenue Bonds,
Series 1985 (HSL La Cholla Project),
Adjustable Rate Bond,
3.0%, 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 3,052,500
Kyrene Elementary School District No. 28
of Maricopa County, Arizona, School
Improvement Bonds, Project of 1993,
Series A (1993),
5.2%, 7-1-2013 ........................ 3,000 2,955,000
Gilbert Unified School District No. 41
of Maricopa County, Arizona, School
Improvement Bonds, Project of 1993,
Series B (1994):
5.15%, 7-1-2008 ....................... 2,000 1,847,500
5.1%, 7-1-2007 ........................ 1,000 927,500
City of Phoenix, Arizona, General
Obligation Refunding Bonds,
Series 1993A,
7.0%, 7-1-2010 ........................ 2,500 2,728,125
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
ARIZONA (Continued)
State of Arizona, Refunding Certificates
of Participation, Series 1992B,
6.25%, 9-1-2010 ....................... $ 2,500 $ 2,500,000
The Industrial Development Authority
of the County of Maricopa (Arizona),
Samaritan Health Services, Hospital System
Revenue Refunding Bonds, Series 1990A,
7.0%, 12-1-2016 ....................... 2,000 2,180,000
The Industrial Development Authority of the
County of Pima, Insured Refunding Revenue
Bonds (Tucson Medical Center),
Series 1993A,
5.3%, 4-1-2008 ........................ 1,940 1,794,500
Paradise Valley Unified School District
No. 69 of Maricopa County, Arizona,
Refunding Bonds, Second Series 1993,
0.0%, 7-1-2007 ........................ 3,000 1,338,750
Apache County (Arizona), Public Finance
Corporation, Certificates of Participation,
Series 1994,
5.5%, 5-1-2010......................... 1,000 882,500
Total ................................. 50,433,438
CALIFORNIA - 3.14%
Transmission Agency of Northern California,
California-Oregon Transmission Project
Revenue Bonds, 1990 Series A,
7.0%, 5-1-2013 ........................ 12,000 13,155,000
California Statewide Communities Development
Authority, Hospital Revenue Certificates
of Participation, Cedars-Sinai Medical Center,
Series 1992,
6.5%, 8-1-2012 ........................ 5,200 5,304,000
California Health Facilities Financing
Authority, Hospital Revenue Bonds (Downey
Community Hospital), Series 1993,
5.75%, 5-15-2015 ...................... 4,250 3,729,375
Southern California Public Power Authority,
Multiple Project Revenue Bonds, 1989 Series,
6.75%, 7-1-2012 ....................... 3,455 3,601,838
Sacramento Municipal Utility District,
Electric Revenue Refunding Bonds,
1993 Series G,
6.5%, 9-1-2013 ........................ 2,500 2,606,250
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
CALIFORNIA (Continued)
Redevelopment Agency of the City of
San Jose, Multifamily Housing Revenue
Refunding Bonds (Colonnade Apartments),
5.25%, 11-1-2008 ...................... $ 2,750 $ 2,554,063
Total ................................. 30,950,526
COLORADO - 5.49%
City and County of Denver, Colorado,
Airport System Revenue Bonds:
Series 1991D:
7.75%, 11-15-2013 ..................... 8,705 9,249,063
7.75%, 11-15-2021 ..................... 6,250 6,531,250
0.0%, 11-15-2005 ...................... 8,000 3,620,000
0.0%, 11-15-2003 ...................... 5,000 2,618,750
Series 1991A:
8.75%, 11-15-2023 ..................... 11,000 12,251,250
0.0%, 11-15-2003 ...................... 7,855 4,114,056
Series 1992C:
6.65%, 11-15-2005 ..................... 7,980 7,880,250
6.35%, 11-15-2001 ..................... 3,250 3,189,063
City of Northglenn, Colorado, General
Obligation Water and Sewer Utility
Revenue Refunding Bonds, Series 1994,
5.5%, 12-1-2009 ....................... 3,450 3,264,563
Regional Transportation District (Colorado),
Weekly Adjustable/Fixed Rate, Special
Passenger Fare Revenue Bonds, Series 1989A,
5.95%, 6-1-99 ......................... 1,370 1,370,000
Total ................................. 54,088,245
DISTRICT OF COLUMBIA - 0.55%
District of Columbia (Washington, D.C.),
University Revenue Bonds (The Howard
University Issue), Series 1990A,
7.25%, 10-1-2020 ...................... 5,000 5,418,750
FLORIDA - 1.39%
State of Florida, Department of
Environmental Protection, Preservation
2000 Revenue Bonds, Series 1994A,
4.75%, 7-1-2012 ....................... 10,000 8,462,500
Dade County, Florida, Water and Sewer
System Revenue Refunding Bonds,
Series 1993,
5.0%, 10-1-2013 ....................... 4,775 4,148,281
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
FLORIDA (Continued)
City of Gainesville, Florida, Utilities
System Revenue Bonds, 1992 Series A,
6.5%, 10-1-2012 ....................... $ 1,085 $ 1,102,631
Total ................................. 13,713,412
GEORGIA - 6.74%
Municipal Electric Authority of Georgia:
General Power Revenue Bonds, 1992B Series:
8.25%, 1-1-2011 ....................... 8,700 10,385,625
6.375%, 1-1-2016 ...................... 8,000 8,070,000
6.2%, 1-1-2010 ........................ 3,495 3,499,369
Project One Special Obligation Bonds,
Fifth Crossover Series,
6.4%, 1-1-2013 ........................ 15,500 15,906,875
City of Atlanta, Airport Facilities
Revenue Bonds, Series 1990,
6.5%, 1-1-2013 ........................ 11,200 11,326,000
Fulton County School District (Georgia),
General Obligation Refunding Bonds,
Series 1991,
6.375%, 5-1-2010 ...................... 5,000 5,125,000
Hospital Authority of Fulton County, Georgia
(Northside Hospital Project), Series A,
6.1%, 10-01-2009....................... 5,465 4,863,850
Development Authority of Monroe County (Georgia),
Pollution Control Revenue Bonds (Oglethorpe
Power Corporation Scherer Project),
Series 1992A,
6.75%, 1-1-2010 ....................... 4,000 4,215,000
Downtown Development Authority of the
City of Atlanta (Georgia), Refunding
Revenue Bonds (Underground Atlanta
Project), Series 1992:
6.25%, 10-1-2016 ...................... 2,000 2,022,500
6.25%, 10-1-2012 ...................... 1,000 1,011,250
Total ................................. 66,425,469
HAWAII - 3.04%
State of Hawaii, Airports System Revenue
Bonds, Second Series of 1991:
6.9%, 7-1-2012 ........................ 20,195 21,482,431
7.0%, 7-1-2018 ........................ 3,495 3,647,906
City and County of Honolulu, Hawaii,
General Obligation Bonds, Series 1994A:
5.75%, 4-1-2012 ....................... 2,500 2,421,875
5.75%, 4-1-2013 ....................... 2,500 2,418,750
Total ................................. 29,970,962
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
IDAHO - 0.75%
Idaho Health Facilities Authority, Hospital
Revenue Refunding Bonds, Series 1992
(IHC Hospitals, Inc.), Indexed Inverse
Floating/Fixed Term Bonds,
9.66%, 2-15-2021 ...................... $ 6,000 $ 6,450,000
Southern Idaho Regional Solid Waste
District, Certificates of Participation,
Series 1993,
5.45%, 11-1-2013 ...................... 1,000 953,750
Total ................................. 7,403,750
ILLINOIS - 3.46%
City of Chicago, Chicago-O'Hare International
Airport:
General Airport Revenue Bonds,
1992 Series A:
6.0%, 1-1-2018 ........................ 13,675 12,632,281
6.0%, 1-1-2012 ........................ 5,000 4,693,750
General Airport Revenue Refunding Bonds,
1993 Series A,
5.0%, 1-1-2012 ........................ 10,000 8,625,000
Metropolitan Pier and Exposition Authority
(Illinois), McCormick Place Expansion
Project Bonds, Series 1992A,
8.5%, 6-15-2006 ....................... 5,000 6,012,500
Illinois Health Facilities Authority,
Revenue Refunding Bonds, Series 1993C
(Lutheran General HealthSystem),
7.0%, 4-1-2008 ........................ 2,000 2,140,000
Total ................................. 34,103,531
INDIANA - 2.46%
Indiana State Office Building Commission,
Capitol Complex Revenue Bonds:
Series 1990B (State Office Building
I Facility),
7.4%, 7-1-2015 ........................ 8,000 8,980,000
Series 1990A (Senate Avenue Parking Facility),
7.4%, 7-1-2015 ........................ 4,775 5,359,938
Indiana Transportation Finance Authority,
Highway Revenue Bonds, Series 1990A,
7.25%, 6-1-2015 ....................... 9,000 9,877,500
Total ................................. 24,217,438
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
IOWA - 0.39%
Muscatine County, Iowa, Variable Rate Demand
Pollution Control Revenue Refunding Bonds
(Monsanto Company Project), Series 1992,
Adjustable Rate Bond,
2.2%, 10-1-2007 ....................... $ 3,800 $ 3,800,000
LOUISIANA - 1.30%
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,
3.55%, 12-1-2018 ...................... 12,775 12,775,000
MARYLAND - 0.92%
Northeast Maryland Waste Disposal Authority,
Solid Waste Revenue Bonds (Montgomery
County Resource Recovery Project),
Series 1993A:
6.0%, 7-1-2006 ........................ 7,170 7,044,525
6.2%, 7-1-2010 ........................ 2,080 1,996,800
Total ................................. 9,041,325
MASSACHUSETTS - 11.53%
Massachusetts Water Resources Authority:
General Revenue Bonds:
1992 Series A,
6.5%, 7-15-2019 ....................... 21,740 21,957,400
1992 Series B,
5.5%, 11-1-2015 ....................... 12,135 10,769,813
General Revenue Refunding Bonds,
1993 Series B,
5.25%, 3-1-2013 ....................... 5,000 4,350,000
Massachusetts Bay Transportation Authority,
General Transportation System Bonds:
1992 Series B Refunding:
6.2%, 3-1-2016 ........................ 10,300 10,184,125
6.0%, 3-1-2012 ........................ 10,150 9,883,563
1992 Series C,
6.1%, 3-1-2013 ........................ 11,000 10,766,250
The Commonwealth of Massachusetts:
General Obligation Bonds, Consolidated
Loan of 1992, Series A,
6.0%, 6-1-2013 ........................ 18,000 17,797,500
General Obligation Refunding Bonds,
1992 Series B,
6.5%, 8-1-2008 ........................ 3,115 3,262,963
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MASSACHUSETTS (Continued)
Massachusetts Municipal Wholesale
Electric Company, Power Supply System
Revenue Bonds, 1992 Series B,
6.75%, 7-1-2017 ....................... $ 8,900 $ 9,578,625
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 7,270,875
Town of Agawam, Massachusetts, Resource
Recovery Revenue Bonds (Springfield
Resource Recovery Project),
1986 Series,
8.5%, 12-1-2008 ....................... 5,000 5,400,000
Boston Water and Sewer Commission,
General Revenue Bonds, 1992 Series A
(Senior Series),
5.75%, 11-1-2013 ...................... 1,575 1,494,281
Massachusetts Industrial Finance Agency,
Pollution Control Revenue Refunding
Bonds, 1993 Series (Eastern Edison
Company Project),
5.875%, 8-1-2008 ...................... 1,000 940,000
Total ................................. 113,655,395
MICHIGAN - 4.26%
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 9,843,750
Charter County of Wayne, Michigan, Detroit
Metropolitan Wayne County Airport:
Series 1993B:
5.25%, 12-1-2013 ...................... 7,340 6,385,800
5.3%, 12-1-2007 ....................... 1,000 915,000
Series 1993A,
5.25%, 12-1-2013 ...................... 2,750 2,392,500
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 3,565,000
5.0%, 5-1-2011 ........................ 1,885 1,630,525
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MICHIGAN (Continued)
County of Monroe, Michigan, Pollution Control
Revenue Bonds (The Detroit Edison Company
Fermi 2 Power Plant Project), Collateralized
Series CC-1992,
6.55%, 6-1-2024........................ $ 5,070 $ 5,139,713
The Economic Development Corporation of
the City of Detroit, Resource Recovery
Revenue Bonds, Series 1991A,
6.875%, 5-1-2009 ...................... 3,765 3,948,544
Michigan State Hospital Finance Authority,
Hospital Revenue Refunding Bonds
(McLaren Obligated Group),
Series 1993A,
5.375%, 10-15-2013 .................... 3,130 2,687,888
Riverview Community School District,
County of Wayne, State of Michigan,
1994 Refunding Bonds (General Obligation
Unlimited Tax),
5.25%, 5-1-2014 ....................... 3,000 2,636,250
City of Detroit, Michigan, Convention
Facility Limited Tax Revenue Refunding
Bonds (Cobo Hall Expansion Project),
Series 1993,
5.25%, 9-30-2012 ...................... 2,000 1,762,500
Michigan State Hospital Finance Authority,
Hospital Revenue Bonds (Holland Community
Hospital), Series 1993,
5.25%, 1-1-2010 ....................... 1,200 1,048,500
Total ................................. 41,955,970
MINNESOTA - 0.48%
City of Rochester, Minnesota, Health
Care Facilities Revenue Bonds (Mayo
Foundation/Mayo Medical Center),
Series 1992D, Indexed Inverse
Floating/Fixed Term Bonds,
9.08%, 11-15-2009 ..................... 4,500 4,753,125
MISSISSIPPI - 1.53%
Lowndes County, Mississippi, Solid Waste
Disposal and Pollution Control
Refunding Revenue Bonds (Weyerhaeuser
Company Project), Series 1992B, Indexed
Inverse Floating/Fixed Term Bonds,
9.66%, 4-1-2022 ....................... 11,000 11,797,500
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MISSISSIPPI (Continued)
Rankin County Mississippi, Industrial
Development Revenue Bonds, Series 1984
(Yellow Freight System, Inc. Project),
5.75%, 10-1-2008 ...................... $ 2,500 $ 2,321,875
Mississippi Home Corporation, Single
Family Mortgage Revenue Bonds (Access
Program), Series 1994A,
5.875%, 6-1-2014 ...................... 1,050 979,125
Total ................................. 15,098,500
MISSOURI - 3.58%
Health Facilities Revenue Bonds
(Barnes-Jewish, Inc./Christian Health
Services), Series 1993A,
6.0%, 5-15-2011 ....................... 8,885 8,662,875
The City of St. Louis, Airport Revenue
Refunding and Improvement Bonds,
Series 1992, Lambert-St. Louis
International Airport Project,
6.125%, 7-1-2011 ...................... 8,250 8,064,375
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 4,337,500
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 1,964,925
5.25%, 8-15-2005 ...................... 1,295 1,196,256
5.5%, 8-15-2007 ....................... 1,270 1,146,175
The Industrial Development Authority of
the County of Jackson, State of Missouri,
Health Care System Revenue Bonds,
Saint Joseph Health Center Issue,
Series 1992,
6.5%, 7-1-2012 ........................ 3,595 3,460,188
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MISSOURI (Continued)
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 $ 2,035,000
Missouri Division of Professional
Registration Office Building,
Series 1992,
6.3%, 12-1-2008 ....................... 1,000 1,017,500
State of Missouri, Certificates of
Participation (Acute Care Psychiatric
Hospital Project), Series A 1994,
5.625%, 10-15-2014 .................... 2,200 2,013,000
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 1,387,500
Total ................................. 35,285,294
MONTANA - 0.58%
Anaconda-Deer Lodge County, Montana,
Solid Waste Facility Revenue Bonds
(ARCO-Anaconda Smelter Site Project),
Series 1992,
6.375%, 10-1-2016 ..................... 5,750 5,663,750
NEVADA - 0.37%
City of Henderson, Nevada, General
Obligation (Limited Tax) Water Bonds
(Additionally Secured by Pledged Revenues),
Series 1993A:
6.375%, 12-1-2016 ..................... 1,920 1,898,400
6.375%, 12-1-2015 ..................... 1,805 1,784,694
Total ................................. 3,683,094
NEW JERSEY - 1.73%
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 6,995,188
Series A,
7.5%, 12-1-2010 ....................... 5,500 5,665,000
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW JERSEY (Continued)
Middlesex County Utilities Authority,
Sewer Revenue Refunding Bonds, Series
1992A, Indexed Inverse Floating/Fixed
Term Bonds,
8.7%, 8-15-2010 ....................... $ 3,000 $ 3,183,750
New Jersey Economic Development Authority,
Economic Development Refunding Bonds
(Yellow Freight System, Inc. - 1993
Project),
6.125%, 4-1-2008 ...................... 1,250 1,212,500
Total ................................. 17,056,438
NEW MEXICO - 0.17%
New Mexico Educational Assistance
Foundation, Student Loan Purchase Bonds,
1994 Series II-B,
5.75%, 12-1-2008 ...................... 1,750 1,627,500
NEW YORK - 13.42%
The City of New York, General Obligation
Bonds:
Fiscal 1993 Series B,
7.0%, 10-1-2011 ....................... 15,000 16,181,250
Fiscal 1993 Series A:
6.375%, 8-1-2008 ...................... 8,000 7,870,000
6.375%, 8-1-2007 ...................... 6,000 5,910,000
Fiscal 1994 Series D,
5.75%, 8-15-2007....................... 9,600 9,000,000
1993 Series B, FGIC Insured, Adjustable
Rate Bond,
2.6%, 10-1-2020........................ 6,400 6,400,000
Fiscal 1993 Series H,
7.0%, 2-1-2022 ........................ 3,000 3,213,750
Fiscal 1994 Series G,
5.6%, 8-1-2006 ........................ 3,400 3,170,500
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 6,378,125
Fiscal 1994 Series B,
5.375%, 6-15-2007 ..................... 1,750 1,601,250
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW YORK (Continued)
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 ...................... $15,000 $ 14,506,500
5.75%, 6-15-2011 ...................... 5,000 4,866,650
Metropolitan Transportation Authority,
Transit Facilities Revenue Bonds,
Series I,
7.0%, 7-1-2009 ........................ 9,000 9,866,250
New York Local Government Assistance
Corporation (A Public Benefit Corporation
of the State of New York):
Series 1993C Refunding Bonds,
5.375%, 4-1-2012 ...................... 6,000 5,392,500
Series 1993E Refunding Bonds,
6.0%, 4-1-2014 ........................ 3,000 2,921,250
Dormitory Authority of the State
of New York:
City University Refunding Bonds,
5.875%, 5-15-2011...................... 4,655 4,503,713
State University Educational Facilities,
Revenue Bonds, Series 1993B,
7.5%, 5-15-2011 ....................... 2,000 2,220,000
Triborough Bridge and Tunnel Authority,
General Purpose Revenue Bonds,
Series Q,
6.75%, 1-1-2009 ....................... 4,700 4,958,500
New York State Thruway Authority, Local
Highway and Bridge Service Contract
Bonds, Series 1993,
5.25%, 4-1-2013 ....................... 4,275 3,708,563
New York State Urban Development Corporation,
Correctional Capital Facilities Revenue
Bonds, 1993A Refunding Series,
5.5%, 1-1-2014......................... 4,000 3,610,000
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW YORK (Continued)
New York State Medical Care Facilities,
Finance Agency Mental Health Services
Facilities, Improvement Revenue Bonds,
1993 Series F Refunding,
5.375%, 2-15-2014 ..................... $ 2,000 $ 1,740,000
New York State Energy Research and
Development Authority, Facilities Revenue
Bonds, Series 1992 B (Consolidated Edison
Company of New York, Inc. Project),
6.375%, 12-1-2027...................... 1,500 1,515,000
United Nations Development Corporation
(a public benefit corporation of the
State of New York), 1992 Refunding Bonds,
Series A (Senior Lien),
6.0%, 7-1-2012 ........................ 1,000 970,000
Total ................................. 132,218,801
NORTH CAROLINA - 4.82%
North Carolina Eastern Municipal Power
Agency, Power System Revenue Bonds:
Refunding Series 1993 B:
7.0%, 1-1-2008 ........................ 30,000 31,912,500
6.125%, 1-1-2009 ...................... 9,000 8,831,250
Refunding Series 1993 C,
7.0%, 1-1-2013 ........................ 3,500 3,710,000
Person County, North Carolina, Industrial
Facility and Pollution Control Finance
Authority, Revenue Solid Waste Disposal
Bonds, Series 1986,
2.6%, 11-1-2016........................ 3,000 3,000,000
Total.................................. 47,453,750
OHIO - 0.20%
Port Authority of Cincinnati & Hamilton
County, Ohio, Economic Development
Revenue Bonds, Adjustable Rate Bond,
2.9%, 9-1-2025......................... 2,000 2,000,000
OKLAHOMA - 0.54%
Trustees of the Tulsa Municipal Airport
Trust, Revenue Bonds, Series 1985,
9.5%, 6-1-2020......................... 5,000 5,362,500
PENNSYLVANIA - 1.26%
Delaware County Authority, Health
Facilities Revenue Bonds, Series 1993A,
5.125%, 11-15-2012 .................... 5,000 4,300,000
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
PENNSYLVANIA (Continued)
Montgomery County Industrial Development
Authority (Pennsylvania), Resource
Recovery Revenue Bonds (Montgomery
County Project), Series 1989,
7.5%, 1-1-2012 ........................ $ 3,750 $ 4,087,500
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 4,031,250
Total ................................. 12,418,750
RHODE ISLAND - 0.20%
Rhode Island Health and Educational
Building Corporation, Hospital Financing
Revenue Bonds - Rhode Island Hospital
Issue, Series 1991 A, Inverse Floater,
10.932%, 8-15-2021 .................... 1,000 1,108,750
Rhode Island Port Authority and Economic
Development Corporation, Airport Revenue
Bonds, 1993 Series A,
5.125%, 7-1-2009 ...................... 1,000 873,750
Total ................................. 1,982,500
SOUTH CAROLINA - 2.34%
Calhoun County, South Carolina, Solid
Waste Disposal Facilities Revenue Bonds
(Eastman Kodak Company Project),
Series 1992,
6.75%, 5-1-2017 ....................... 10,895 11,317,181
Charleston County, South Carolina,
Industrial Refunding Revenue Bonds,
Massey Coal (Shell Oil Co.),
Adjustable Rate Bond,
2.9%, 1-1-2007......................... 6,400 6,400,000
South Carolina State Education
Assistance Authority, Guaranteed Student
Loan Revenue and Refunding Bonds,
1993 Series,
5.55%, 9-1-2008 ....................... 4,000 3,760,000
Greenville Hospital System Board of
Trustees, Hospital Facilities Revenue
Bonds, Series 1990,
7.0%, 5-1-2017 ........................ 1,500 1,576,875
Total ................................. 23,054,056
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
TENNESSEE - 0.81%
Memphis-Shelby County Airport Authority,
Airport Revenue Refunding Bonds,
Series 1993B,
6.5%, 2-15-2009 ....................... $ 3,335 $ 3,418,375
Tennessee Housing Development Agency,
Mortgage Finance Program Bonds,
1993 Series A,
5.85%, 7-1-2013 ....................... 3,070 2,939,525
The Metropolitan Government of Nashville
and Davidson County (Tennessee), Water
and Sewer Variable Rate Demand Revenue
Bonds, 1985 Series C,
7.2%, 1-1-2011 ........................ 1,500 1,636,875
Total ................................. 7,994,775
TEXAS - 5.33%
Tarrant County Water Control and Improvement
District Number One (Tarrant County, Texas),
Water Revenue Refunding and Improvement
Bonds, Series 1992,
5.75%, 3-1-2013 ....................... 5,475 5,646,094
Lubbock Health Facilities Development
Corporation, Hospital Revenue Bonds
(Methodist Hospital, Lubbock, Texas
Project),
6.75%, 12-1-2010 ...................... 5,000 5,268,750
Harris County Health Facilities Development
Corporation, Hospital Revenue Bonds
(St. Luke's Episcopal Hospital Project),
Series 1991A,
6.75%, 2-15-2021 ...................... 5,000 5,175,000
Alliance Airport Authority, Inc.,
Special Facilities Revenue Bonds,
Series 1991 (American Airlines, Inc.
Project),
7.0%, 12-1-2011 ....................... 5,000 4,962,500
City of Austin, Texas, Hotel Occupancy
Tax Revenue Refunding Bonds,
Series 1993A,
5.125%, 11-15-2014 .................... 5,000 4,337,500
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
TEXAS (Continued)
Angelina & Neches River Authority
of Texas, Solid Waste Disposal
Revenue Bonds:
Series 1984C, Adjustable Rate Bond,
2.9%, 5-1-2014......................... $ 2,300 $ 2,300,000
Series 1984E, Adjustable Rate Bond,
2.9%, 5-1-2014......................... 2,000 2,000,000
Gulf Coast Waste Disposal Authority,
Solid Waste Disposal Revenue Refunding
Bonds, Series 1994 (The Quaker Oats
Company Project),
2.2%, 4-1-2013 ........................ 3,950 3,950,000
Texas National Research
Laboratory Commission Financing
Corporation, Lease Revenue
Bonds, Series 1991 (Superconducting
Super Collider Project),
6.75%, 12-1-2004 ...................... 3,945 3,905,550
City of Houston, Texas, Water Conveyance
System Contract, Certificates of
Participation:
Series 1993F,
7.2%, 12-15-2007 ...................... 1,500 1,676,250
Series 1993B,
7.0%, 12-15-2007 ...................... 1,000 1,098,750
Series 1993C,
7.0%, 12-15-2007 ...................... 1,000 1,098,750
Port of Corpus Christi, Authority of
Nueces County, Texas, Pollution Control
Revenue Bonds (Hoechst Celanese Corporation
Project), Series 1992,
6.875%, 4-1-2017 ...................... 3,500 3,648,750
Brazos River Authority (Texas), Variable
Rate Demand Pollution Control Revenue
Refunding Bonds (Monsanto Company Project),
Series 1994, Adjustable Rate Bond,
2.2%, 2-1-2004......................... 2,575 2,575,000
Grapevine, Texas, Industrial Development
Corporation for American Airlines, Multiple
Mode Revenue Bonds, Series B3, Adjustable
Rate Bond,
3.0%, 12-1-2024........................ 2,300 2,300,000
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 1,335,000
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
TEXAS (Continued)
Texas Public Finance Authority, Texas
State Technical College System, Building
Revenue and Refunding Revenue Bonds,
Series 1992,
6.25%, 8-1-2009 ....................... $ 1,250 $ 1,262,500
Total ................................. 52,540,394
VIRGINIA - 1.22%
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 6,168,825
City of Virginia Beach, Virginia, General
Obligation Public Improvement and
Refunding Bonds, Series of 1994,
5.8%, 11-1-2011 ....................... 3,630 3,512,025
County of Stafford, Virginia, Refunding
Certificates of Participation, Series
1994,
5.0%, 11-1-2009........................ 1,675 1,490,750
Southeastern Public Service Authority of
Virginia, Senior Revenue Refunding Bonds,
Series 1993A (Regional Solid Waste System),
5.125%, 7-1-2013....................... 1,000 880,000
Total ................................. 12,051,600
WASHINGTON - 8.23%
Washington Public Power Supply System:
Nuclear Project No. 3, Refunding
Revenue Bonds, Series 1989B,
7.125%, 7-1-2016 ...................... 20,750 22,332,188
Nuclear Project No. 1, Refunding Revenue
Bonds:
Series 1989B,
7.125%, 7-1-2016 ...................... 8,200 8,825,250
Series 1994B,
7.375%, 7-1-2004....................... 6,600 7,194,000
Series 1990B,
7.25%, 7-1-2009 ....................... 3,055 3,345,225
Nuclear Project No. 2, Refunding Revenue
Bonds, Series 1990A,
7.25%, 7-1-2006 ....................... 6,475 7,114,406
State of Washington, Various Purpose General
Obligation Bonds, Series 1990A,
6.75%, 2-1-2015 ....................... 11,995 12,684,713
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 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 $ 5,923,125
Public Utility District No. 1 of Chelan
County, Washington, Chelan Hydro
Consolidated System Revenue Bonds,
Series 1993E:
5.7%, 7-1-2009 ........................ 2,630 2,465,625
5.7%, 7-1-2008 ........................ 1,500 1,425,000
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 2,597,013
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 2,387,813
Port of Seattle, Washington, Revenue Bonds,
Series 1992B,
6.7%, 11-1-2010 ...................... 2,000 2,065,000
City of Walla Walla, Washington, Water
& Sewer Revenue Refunding Bonds,
Series 1992,
6.1%, 8-1-2009 ........................ 1,500 1,470,000
Washington Health Care Facilities
Authority, Revenue Bonds, Series 1993
(Highline Community Hospital, Seattle),
5.5%, 8-15-2014 ....................... 1,500 1,321,875
Total ................................. 81,151,233
WISCONSIN - 0.82%
The Wisconsin Public Power Incorporated
SYSTEM, Power Supply System Revenue
Bonds, Series 1993, Inverse Floater,
7.85%, 7-1-2014........................ 5,000 4,287,500
Wisconsin Housing and Economic Development
Authority, Home Ownership Revenue Bonds,
1990 Series E,
8.0%, 3-1-2021 ........................ 3,500 3,801,875
Total ................................. 8,089,375
See Notes to Schedule of Investments on page 23.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
WYOMING - 0.26%
Wyoming Community Development Authority,
Single Family Mortgage Bonds (Federally
Insured or Guaranteed Mortgage Loans),
6.875%, 6-1-2014 ...................... $ 2,510 $ 2,600,988
TOTAL MUNICIPAL BONDS - 99.54% $981,019,253
(Cost: $983,586,904)
TOTAL SHORT-TERM SECURITIES - 0.58% $ 5,730,000
(Cost: $5,730,000)
TOTAL INVESTMENT SECURITIES - 100.12% $986,749,253
(Cost: $989,316,904)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.12%) (1,206,243)
NET ASSETS - 100.00% $985,543,010
Notes to Schedule of Investments
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
MARCH 31, 1994
Assets
Investment securities-at value
(Notes 1 and 3) ............................... $ 986,749,253
Cash ........................................... 8,092
Receivables:
Investment securities sold .................... 21,844,514
Interest ...................................... 16,528,755
Fund shares sold .............................. 921,006
Prepaid insurance premium ...................... 26,830
--------------
Total assets ................................ 1,026,078,450
--------------
Liabilities
Payable for investment securities purchased .... 36,915,976
Payable for Fund shares redeemed ............... 3,311,001
Accrued service fee ............................ 209,061
Accrued transfer agency and dividend disbursing 55,282
Accrued accounting services fee ................ 8,333
Other .......................................... 35,787
--------------
Total liabilities ........................... 40,535,440
--------------
Total net assets ........................... $ 985,543,010
==============
Net Assets
$1.00 par value capital stock, authorized --
400,000,000; shares outstanding -- 140,649,251
Capital stock ................................. $ 140,649,251
Additional paid-in capital .................... 836,163,481
Accumulated undistributed income:
Accumulated undistributed net investment
income ...................................... 845,081
Accumulated undistributed net realized gain on
investment transactions ..................... 10,452,848
Net unrealized depreciation in value of
investments at end of period ................ (2,567,651)
--------------
Net assets applicable to outstanding units
of capital ................................. $ 985,543,010
==============
Net asset value per share (net assets divided by
shares outstanding) ............................ $7.01
=====
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended MARCH 31, 1994
Investment Income
Interest (taxable portion - $337,892) ............ $ 29,676,170
------------
Expenses (Note 2):
Investment management fee ....................... 2,344,808
Service fee ..................................... 478,602
Transfer agency and dividend disbursing ......... 349,642
Accounting services fee ......................... 50,000
Custodian fees .................................. 29,775
Audit fees ...................................... 25,233
Legal fees ...................................... 9,566
Other ........................................... 138,352
------------
Total expenses ................................ 3,425,978
------------
Net investment income ........................ 26,250,192
------------
Realized and Unrealized Gain (Loss) on Investments
Realized net gain on securities .................. 17,178,520
Realized net gain on futures contracts closed .... 2,159,375
Realized net gain on put options purchased ........ 584,370
------------
Net realized gain on investments ................ 19,922,265
Unrealized depreciation in value of securities
during the period................................ (99,371,411)
------------
Net loss on investments ....................... (79,449,146)
------------
Net decrease in net assets resulting
from operations ............................ $(53,198,954)
============
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the For the
six months fiscal year
ended ended
March 31, September 30,
1994 1993
-------------- --------------
Increase (Decrease) in Net Assets
Operations:
Net investment income..............$ 26,250,192 $ 51,933,369
Realized net gain on investments... 19,922,265 26,630,314
Unrealized appreciation
(depreciation) .................. (99,371,411) 57,525,709
-------------- --------------
Net increase (decrease) in net
assets resulting from
operations ..................... (53,198,954) 136,089,392
-------------- --------------
Dividends to shareholders from:*
Net investment income ............. (26,368,197) (51,122,560)
Realized gains on securities
transactions .................... (34,570,932) (27,984,514)
-------------- --------------
(60,939,129) (79,107,074)
-------------- --------------
Capital share transactions:
Proceeds from sale of shares
(6,456,534 and 16,974,075
shares, respectively) ........... 49,128,772 127,188,027
Proceeds from reinvestment of
dividends and/or capital gains
distribution (7,002,683 and
8,990,841 shares, respectively) .. 52,791,607 66,136,852
Payments for shares redeemed
(7,639,667 and 11,337,453
shares, respectively) ........... (57,673,387) (84,877,211)
-------------- --------------
Net increase in net assets
resulting from capital
share transactions ............. 44,246,992 108,447,668
-------------- --------------
Total increase (decrease) ...... (69,891,091) 165,429,986
Net Assets
Beginning of period ................ 1,055,434,101 890,004,115
-------------- --------------
End of period, including
undistributed net investment
income of $845,081 and
$963,086, respectively ............$ 985,543,010 $1,055,434,101
============== ==============
*See "Financial Highlights" on page 27.
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
six For the fiscal year ended
months September 30,
ended ------------------------------------
3/31/94 1993 1992 1991 1990 1989
------- ------ ------ ------ ------ ------
Net asset value,
beginning of period $7.83 $7.40 $7.18 $6.66 $7.07 $6.91
----- ----- ----- ----- ----- -----
Income from investment
operations:
Net investment
income........... .19 .41 .43 .45 .47 .49
Net realized and
unrealized gain
(loss) on
investments...... (0.56) .65 .35 .52 (0.16) .22
----- ----- ----- ----- ----- -----
Total from investment
operations ........ (0.37) 1.06 .78 .97 .31 .71
----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment
income........... (0.19) (0.40) (0.43) (0.45) (0.49) (0.48)
Distribution from
capital gains.... (0.26) (0.23) (0.13) 0.00 (0.23) (0.07)
----- ----- ----- ----- ----- -----
Total distributions. (0.45) (0.63) (0.56) (0.45) (0.72) (0.55)
----- ----- ----- ----- ----- -----
Net asset value,
end of period ..... $7.01 $7.83 $7.40 $7.18 $6.66 $7.07
===== ===== ===== ===== ===== =====
Total return*....... -5.09% 15.15% 11.41% 14.97% 4.46% 10.74%
Net assets, end of
period (000
omitted) .........$985,543$1,055,434$890,004$769,122$648,546$594,733
Ratio of expenses to
average net assets 0.65%** 0.56% 0.57% 0.57% 0.57% 0.57%
Ratio of net investment
income to average
net assets ........ 5.00%** 5.38% 5.92% 6.47% 6.82% 6.98%
Portfolio
turnover rate ..... 51.61%**94.51%125.44% 144.36%181.25% 226.41%
*Total return calculated without taking into account the sales load
deducted on an initial purchase.
**Annualized.
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 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 March
31, 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 $10.9 billion of
combined net assets at March 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
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
$1,570,700, out of which W&R paid sales commissions of $891,611 and all expenses
in connection with the sale of Fund shares, except for registration fees and
related expenses.
Effective October 1, 1993, the Fund adopted a 12b-1 Service Plan with a
maximum fee of .25%
The Fund paid Directors' fees of $19,751.
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 $310,866,685 while proceeds from maturities and
sales aggregated $263,821,404. Purchases of options aggregated $996,880 while
proceeds aggregated $1,581,250. Purchases of short-term securities aggregated
$271,651,721 while proceeds from maturities and sales aggregated $277,531,009.
No U.S. Government securities were bought or sold during the period ended March
31, 1994.
For Federal income tax purposes, cost of investments owned at March 31,
1994 was $995,990,729, resulting in net unrealized depreciation of $9,241,476,
of which $15,429,199 related to appreciated securities and $24,670,675 related
to depreciated securities.
NOTE 4 -- Federal Income Tax Matters
For Federal income tax purposes, the Fund realized capital gain net income
of $31,350,546 during the year ended September 30, 1993. The capital gain net
income was distributed to the Fund's shareholders subsequent to September 30,
1993.
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 March 31, 1994, the results of its operations for the six months
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 March 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
Kansas City, Missouri
April 29, 1994
<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
Rodney O. McWhinney, Vice President
Sharon K. Pappas, Vice President and Secretary
Carl E. Sturgeon, 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
NUR1008SA(3-94)
printed on recycled paper
