<PAGE>
United
Municipal
Bond Fund,
Inc.
ANNUAL
REPORT
--------------------------------------------
For the fiscal year ended September 30, 1995
<PAGE>
FUND MANAGER'S LETTER
- -----------------------------------------------------------------
SEPTEMBER 30, 1995
Dear Shareholder:
This report relates to the operation of your Fund for the fiscal year ended
September 30, 1995. The discussion, graphs and tables contained in this report
will provide you with information regarding the Fund's performance during that
period.
The past fiscal year witnessed a number of economic and political events
affecting the Fund's overall performance. During the first two quarters of the
fiscal year, the Federal Reserve increased short-term interest rates several
times to preempt possible inflationary tendencies resulting from the
strengthening economy. However, during the latter stages of the second quarter,
the economy entered a period of slower growth prompting the Federal Reserve to
slightly lower the short-term federal funds rate. On the political front, the
newly empowered Republican party promised, among other things, to balance the
federal budget and to reform the federal tax laws.
During the past fiscal year, we purchased and held bonds we believed had the
potential to rise in value in periods of declining interest rates.
Consequently, as rates did eventually decline over the course of the year, the
value of the Fund's portfolio increased. With Federal Reserve rate increases
and publicity regarding possible tax reforms dominating the first part of the
fiscal year, the Fund assumed a somewhat defensive posture and maintained a
higher cash reserve. As the economy has slowed, the Fund has returned to a
fully invested position, focusing on bonds with longer maturities.
The strategies and techniques we applied resulted in the Fund's performance
slightly exceeding 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). The Fund's excellent performance during
the year resulted from our emphasis on longer-term debt obligations.
We expect the economy to continue its slow pace of growth well into 1996. This
slow economic growth and low inflation should result in a modest decline in
interest rates, an increase in bond prices and an appreciation in value of the
Fund's portfolio. While proposed tax reforms could have an impact on the
performance of the Fund, we believe that no significant action will take place
until after the 1996 presidential election and will have little effect on bond
yields during the coming year.
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
Average Annual Total Return*
1 year 5 years 10 years
6.77% 8.63 % 9.84%
Lipper
General
United Lehman Municipal
MunicipalBrothers Bond
Bond Municipal Fund
Fund, Bond Universe
Inc. Index Average
------------------ ----------
09/30/85 Purchase 9,575 10,000 10,000
09/30/86 12,274 12,467 12,302
09/30/87 11,844 12,528 12,035
09/30/88 13,984 14,181 13,708
09/30/89 15,486 15,412 14,886
09/30/90 16,177 16,460 15,661
09/30/91 18,599 18,630 17,673
09/30/92 20,721 20,578 19,484
09/30/93 23,860 23,199 22,023
09/30/94 22,927 22,634 21,170
09/30/95 25,568 25,166 23,231
==== United Municipal Bond Fund, Inc.** -- $25,568
++++ Lehman Brothers Municipal Bond Index -- $25,166
---- Lipper General Municipal Bond Fund Universe Average - $23,231
Past performance is not predictive of future performance. Indexes are
unmanaged.
*Performance data quoted represents past performance and is based on deduction
of a 4.25% sales load on the initial purchase in each of the three periods.
Investment return and principal value will fluctuate and an investor's shares,
when redeemed, may be worth more or less than their original cost.
**The value of the investment in the Fund is impacted by the sales load at the
time of the investment and by the ongoing expenses of the Fund.
<PAGE>
SHAREHOLDER SUMMARY
- --------------------------------------------------------------
United Municipal Bond Fund, Inc.
PORTFOLIO STRATEGY:
Minimum 80% investment OBJECTIVE: Income not subject to Federal
quality Municipal Bonds income taxation. (Income may be
subject to state and local taxes
Maximum 10% Non-Municipal and a portion may be subject to
Bond Debt Securities Federal taxes, including
alternative minimum tax.)
May own 25% or more
Industrial Revenue Bonds STRATEGY: Invests in municipal bonds
(debt securities the interest on which
is generally exempt from Federal income
tax.) (May invest in certain futures.)
FOUNDED: 1976
SCHEDULED DIVIDEND FREQUENCY: MONTHLY
<PAGE>
PERFORMANCE SUMMARY
PER SHARE DATA
For the Fiscal Year Ended September 30, 1995
- --------------------------------------------
DIVIDENDS PAID $0.39
=====
CAPITAL GAINS DISTRIBUTION $0.04
=====
NET ASSET VALUE ON
9/30/95 $7.25 adjusted to: $7.29 (A)
9/30/94 6.91
-----
CHANGE PER SHARE $0.38
=====
(A) This number includes the capital gains distribution of $0.04 paid in
December 1994 added to the actual net asset value on September 30, 1995.
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 9-30-95 6.77% 11.51%
5-year period ended 9-30-95 8.63% 9.58%
10-year period ended 9-30-95 9.84% 10.32%
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, 1995, United Municipal Bond Fund, Inc. had net assets totaling
$975,108,798 invested in a diversified portfolio.
As a shareholder of United Municipal Bond Fund, Inc., for every $100 you had
invested on September 30, 1995, your Fund owned:
$15.62 Public Power Revenue Bonds
14.74 Other Municipal Bonds
12.29 Housing Revenue Bonds
11.55 Airport Revenue Bonds
9.47 Water and Sewer Revenue Bonds
9.21 Hospital Revenue Bonds
7.29 Transportation Revenue Bonds
6.61 Cash and Cash Equivalents and Adjustable Rate Bonds
4.95 Resource Recovery Bonds
4.89 Student Loan Bonds
3.38 Lease/Certificates of Participation Bonds
1995 TAX YEAR TAXABLE EQUIVALENT YIELDS*
- --------------------------------------------------------------------------------
If your Taxable Income is:
Your
Marginal Equivalent Tax Free Yields
Joint Single Tax -----------------------------------
Return ReturnBracket Is 5% 6% 7% 8%
- -----------------------------------------------------------------
$ 0- 39,000$ 0- 23,250 15% 5.88 7.06 8.24 9.41
$ 39,001- 94,250$ 23,251- 56,550 28% 6.94 8.33 9.72 11.11
$ 94,251-143,600$ 56,551-117,950 31% 7.25 8.70 10.14 11.59
$143,601-256,500$117,951-256,500 36% 7.81 9.38 10.94 12.50
$256,501 and above$256,501 and above 39.6% 8.28 9.93 11.59 13.25
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, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS
ALASKA - 0.30%
Alaska Housing Finance Corporation:
General Housing Purpose Bonds, 1994
Series A (Refunding/Non-AMT),
5.0%, 12-1-2008 ....................... $ 1,640 $ 1,517,000
Collateralized Home Mortgage Bonds,
1990 Subseries A-3,
5.7%, 12-1-2011 ....................... 1,455 1,429,537
Total ................................. 2,946,537
ARIZONA - 1.19%
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 3,900,000
The Industrial Development Authority
of the City of Tucson, Arizona,
Multifamily Housing Revenue Bonds,
Series 1985 (HSL La Cholla Project),
Adjustable Rate Bond,
4.0%, 12-1-2014........................ 3,185 3,185,000
Kyrene Elementary School District No. 28
of Maricopa County, Arizona, School
Improvement Bonds, Project of 1993,
Series B (1995),
6.0%, 7-1-2014 ........................ 2,500 2,546,875
The Industrial Development Authority of the
County of Apache (Arizona), Pollution
Control Revenue Bonds, 1981 Series B
(Tucson Electric Power Company Project),
3.95%, 10-1-2021 ...................... 2,000 2,000,000
Total ................................. 11,631,875
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
ARKANSAS - 0.19%
Arkansas Development Finance Authority,
Single Family Mortgage Revenue Bonds
(Access Program), 1995 Series F,
7.45%, 1-1-2027 ....................... $ 1,710 $ 1,851,075
CALIFORNIA - 16.50%
City of Pomona, California, Single
Family Mortgage Revenue Refunding
Bonds (GNMA and FNMA Mortgage-Backed
Securities), Series 1990A,
7.6%, 5-1-2023 ........................ 23,000 28,117,500
Southern California Public Power Authority:
Transmission Project Revenue Bonds, 1992
Subordinate Refunding Series (Southern
Transmission Project), Select Auction
Variable Rate Securities (SAVRS),
6.0%, 7-1-2012 ........................ 10,000 10,125,000
Palo Verde Project, Power Project
Revenue Bonds, 1993 Subordinate Refunding
Series Inverse Floaters,
5.35%, 7-1-2012 ....................... 10,000 9,562,500
Multiple Project Revenue Bonds, 1989 Series,
6.75%, 7-1-2012 ....................... 3,455 3,757,313
Mead-Adelanto Project Revenue Bonds,
1994 Series A,
5.15%, 7-1-2015 ....................... 2,800 2,544,500
County of Riverside, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed
Securities Program):
1988 Series A,
8.3%, 11-1-2012 ....................... 10,000 12,800,000
1989 Series A,
7.8%, 5-1-2021 ........................ 5,000 6,018,750
County of Sacramento, California, Single
Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program),
Issue A of 1988,
8.125%, 7-1-2016 ...................... 12,810 15,644,213
Transmission Agency of Northern California,
California-Oregon Transmission Project
Revenue Bonds, 1990 Series A,
7.0%, 5-1-2013 ........................ 12,000 13,665,000
Imperial Irrigation District,
1993 Refunding Certificates of
Participation (1990 Electric
System Project),
5.2%, 11-1-2009 ....................... 10,000 9,450,000
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
CALIFORNIA (Continued)
Community Facilities District No. 90-2
(Green Valley) of the City of Perris,
1991 Special Tax Bonds,
8.75%, 10-1-2021 ...................... $ 5,650 $ 7,726,375
Sacramento Municipal Utility District,
Electric Revenue Refunding Bonds:
1993 Series D,
5.25%, 11-15-2012 ..................... 4,500 4,235,625
1993 Series G,
6.5%, 9-1-2013 ........................ 2,500 2,696,875
California Statewide Communities Development
Authority, Hospital Revenue Certificates
of Participation, Cedars-Sinai Medical Center,
Series 1992,
6.5%, 8-1-2012 ........................ 5,200 5,486,000
Foothill/Eastern Transportation Corridor
Agency, Toll Road Revenue Bonds, Series
1995A (Fixed Rate) Current Interest Bonds,
6.0%, 1-1-2016 ........................ 5,600 5,397,000
State of California, Department of Water
Resources, Central Valley Project Water
System Revenue Bonds, Series M,
5.0%, 12-1-2013 ....................... 5,610 5,034,975
California Health Facilities Financing
Authority, Hospital Revenue Bonds (Downey
Community Hospital), Series 1993,
5.75%, 5-15-2015 ...................... 4,250 3,936,562
Community Redevelopment Agency of the City
of Palmdale, Restructured Single Family
Mortgage Revenue Bonds, Series 1986A,
8.0%, 3-1-2016 ........................ 3,000 3,742,500
Orange County Water District, Revenue
Certificates of Participation,
Series 1993A (Insured),
5.5%, 8-15-2014 ....................... 3,430 3,168,463
Certificates of Participation (1995
Master Lease Program), Chino Unified
School District,
5.9%, 9-1-2015 ........................ 3,000 2,970,000
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
CALIFORNIA (Continued)
California Rural Home Mortgage Finance
Authority, Single Family Mortgage
Revenue Bonds (Mortgage-Backed Securities
Program), 1995 Series B,
7.75%, 9-1-2027 ....................... $ 1,770 $ 1,977,975
City and County of San Francisco,
California, Sewer Revenue Refunding
Bonds, Series 1992,
5.5%, 10-1-2015 ....................... 2,000 1,897,500
Sacramento County Sanitation Districts
Financing Authority, 1993 Revenue Bonds,
5.125%, 12-1-2013 ..................... 1,000 915,000
Total ................................. 160,869,626
COLORADO - 7.66%
City and County of Denver, Colorado,
Airport System Revenue Bonds:
Series 1991D:
7.75%, 11-15-2013 ..................... 11,705 13,416,856
0.0%, 11-15-2003 ...................... 5,000 3,156,250
0.0%, 11-15-2005 ...................... 4,610 2,558,550
Series 1991A:
8.75%, 11-15-2023 ..................... 8,000 9,230,000
0.0%, 11-15-2003 ...................... 7,855 4,958,469
Series 1992C:
6.75%, 11-15-2013 ..................... 8,765 8,808,825
6.125%, 11-15-2025 .................... 4,500 4,179,375
Series 1990A,
0.0%, 11-15-2003 ...................... 3,370 2,127,312
Colorado Housing and Finance Authority,
Single Family Program Senior Bonds:
1995 Series A,
8.0%, 6-1-2025 ........................ 4,575 5,083,969
1995 Series C,
7.65%, 12-1-2025 ...................... 2,670 2,916,975
1995 Series B,
7.9%, 12-1-2025 ....................... 1,250 1,378,125
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
COLORADO (Continued)
Colorado Student Obligation Bond Authority,
Student Loan Asset-Backed Bonds, Senior
Subordinate, 1995 Series II-B,
6.2%, 12-1-2008 ....................... $ 7,000 $ 7,052,500
Colorado Health Facilities Authority,
Revenue Bonds, Series 1994 (Sisters of
Charity Health Care Systems, Inc.),
5.25%, 5-15-2014 ...................... 4,500 4,213,125
Smith Creek Metropolitan District, Eagle
County, Colorado, Variable Rate Revenue
Bonds, Series 1995,
4.7%, 10-1-2035 ....................... 3,500 3,500,000
City of Englewood, Colorado, Floating Rate
Demand Industrial Development Revenue
Bonds, Series 1995 (Swedish Mob I,
Ltd. Project),
4.1%, 12-1-2010 ....................... 2,100 2,100,000
Total ................................. 74,680,331
CONNECTICUT - 1.78%
Bristol Resource Recovery Facility,
Operating Committee, Solid Waste Revenue
Refunding Bonds (Ogden Martin Systems of
Bristol, Inc. Project--1995 Series),
6.5%, 7-1-2014 ........................ 7,000 7,288,750
Eastern Connecticut Resource Recovery
Authority, Solid Waste Revenue Bonds
(Wheelabrator Lisbon Project),
Series 1993A,
5.5%, 1-1-2014 ........................ 6,750 6,193,125
Connecticut Housing Finance Authority,
Housing Mortgage Finance Program Bonds,
1992 Series A, 1992 Subseries A-1,
5.85%, 11-15-2016 ..................... 4,000 3,910,000
Total ................................. 17,391,875
FLORIDA - 0.71%
Lake County, Florida, Resource Recovery
Industrial Development Refunding Revenue
Bonds (NRG/Recovery Group Project),
Series 1993A,
5.85%, 10-1-2009 ...................... 5,825 5,497,344
Orlando Utilities Commission, Water and
Electric Subordinated Revenue Refunding
Bonds, Series 1994A,
5.0%, 10-1-2012 ....................... 1,500 1,383,750
Total ................................. 6,881,094
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
GEORGIA - 3.52%
Municipal Electric Authority of Georgia:
Project One Special Obligation Bonds,
Fifth Crossover Series,
6.4%, 1-1-2013 ........................ $15,500 $ 16,604,375
General Power Revenue Bonds,
1992B Series:
8.25%, 1-1-2011 ....................... 8,700 11,027,250
6.2%, 1-1-2010 ........................ 3,495 3,713,437
Hospital Authority of Albany-Dougherty
County, Georgia, Revenue Bonds (Phoebe
Putney Memorial Hospital), Series 1993,
5.7%, 9-1-2013 ........................ 2,000 1,982,500
Development Authority of the City of
Marietta, First Mortgage Revenue Bonds
(Life College, Inc.), Series 1995A,
5.75%, 9-1-2014 ....................... 1,000 977,500
Total ................................. 34,305,062
GUAM - 0.10%
Guam Power Authority Revenue Bonds,
1994 Series A,
6.625%, 10-1-2014 ..................... 1,000 1,025,000
HAWAII - 2.28%
State of Hawaii, Airports System Revenue
Bonds, Second Series of 1991,
6.9%, 7-1-2012 ........................ 20,195 22,189,256
IDAHO - 0.67%
Idaho Health Facilities Authority, Hospital
Revenue Refunding Bonds, Series 1992
(IHC Hospitals, Inc.), Indexed Inverse
Floating/Fixed Term Bonds,
6.65%, 2-15-2021 (A) .................. 6,000 6,547,500
ILLINOIS - 2.58%
City of Chicago, Chicago-O'Hare
International Airport:
Special Facility Revenue
Bonds, American Airlines,
Inc. Project:
7.875%, 11-1-2025 ..................... 3,250 3,526,250
8.2%, 12-1-2024 ....................... 3,000 3,502,500
General Airport Revenue Refunding
Bonds, 1993 Series A,
5.0%, 1-1-2012 ........................ 3,000 2,726,250
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
ILLINOIS (Continued)
Illinois Health Facilities Authority
(Lutheran General HealthSystem):
Indexed Inverse Floating Rate
Revenue Bonds, Series 1993B,
6.25%, 4-1-2014 (B) ................... $ 4,100 $ 4,197,375
Variable Rate Demand Revenue Bonds,
Series 1995 (Northwest Community
Hospital),
3.9%, 7-1-2025 ........................ 3,000 3,000,000
Revenue Refunding Bonds, Series 1993C,
7.0%, 4-1-2008 ........................ 2,000 2,275,000
Illinois Educational Facilities Authority,
Revenue Refunding Bonds, Loyola
University of Chicago, Series 1993B,
Structured Yield Curve Notes,
5.45%, 7-1-2014 (C) ................... 4,000 3,735,000
City of Peoria, City of Moline and City
of Freeport, Illinois, Collateralized
Single Family Mortgage Revenue Bonds,
Series 1995-A,
7.6%, 4-1-2027 ........................ 2,000 2,172,500
Total ................................. 25,134,875
INDIANA - 2.60%
Indiana State Office Building Commission,
Capitol Complex Revenue Bonds:
Series 1990B (State Office Building
I Facility),
7.4%, 7-1-2015 ........................ 8,000 9,400,000
Series 1990A (Senate Avenue Parking Facility),
7.4%, 7-1-2015 ........................ 4,775 5,610,625
Indiana Transportation Finance Authority,
Highway Revenue Bonds, Series 1990A,
7.25%, 6-1-2015 ....................... 9,000 10,338,750
Total ................................. 25,349,375
IOWA - 0.82%
Iowa Student Loan Liquidity Corporation,
Student Loan Revenue Bonds, 1993
Subordinate Series C,
6.125%, 12-1-2011 ..................... 5,300 5,300,000
Iowa Finance Authority, Revenue Bonds
(Correctional Facility Program),
Series 1995A,
5.5%, 6-15-2015 ....................... 1,750 1,730,313
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
IOWA (Continued)
Muscatine County, Iowa, Variable Rate Demand
Pollution Control Revenue Refunding Bonds
(Monsanto Company Project), Series 1992,
Adjustable Rate Bond,
3.0%, 10-1-2007 ....................... $ 1,000 $ 1,000,000
Total ................................. 8,030,313
KANSAS - 0.85%
City of Shawnee, Kansas, Variable Rate
Demand Industrial Revenue Bonds, Series
December 1, 1984 (Shawnee Village
Associates Project),
3.0%, 12-1-2009 ....................... 5,570 5,570,000
Sisters of Charity of Leavenworth Health
Services Corporation, Shawnee County,
Kansas, Revenue Bonds, Series 1994,
5.0%, 12-1-2014 ....................... 3,000 2,711,250
Total ................................. 8,281,250
KENTUCKY - 0.62%
Kentucky Economic Development Finance
Authority, Hospital Revenue Bonds,
Baptist Healthcare System Issue,
Series 1994,
5.0%, 8-15-2015 ....................... 4,650 4,155,937
Kentucky Housing Corporation, Housing
Revenue Bonds, 1993 Series B,
5.4%, 7-1-2014 ........................ 2,000 1,885,000
Total ................................. 6,040,937
LOUISIANA - 4.19%
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,
3.71%, 12-1-2018 ...................... 12,645 12,645,000
Parish of Jefferson Home Mortgage Authority,
Tax-Exempt Agency Mortgage-Backed
Securities, Series 1994A:
7.55%, 12-1-2026 ...................... 5,935 6,691,713
6.65%, 12-1-2026 ...................... 4,300 4,450,500
Louisiana Public Facilities Authority,
Hospital Revenue and Refunding Bonds
(St. Francis Medical Center Project),
Inverse Floating Rate Notes, Series 1994B,
5.375%, 7-1-2014 ...................... 10,600 9,738,750
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
LOUISIANA (Continued)
Parish of DeSoto, Louisiana, Environmental
Improvement Revenue Refunding Bonds,
1995 Series B (International Paper
Company Project),
6.55%, 4-1-2019 ....................... $ 7,250 $ 7,295,312
Total ................................. 40,821,275
MARYLAND - 1.47%
Northeast Maryland Waste Disposal Authority,
Solid Waste Revenue Bonds (Montgomery
County Resource Recovery Project),
Series 1993A:
6.3%, 7-1-2016 ........................ 12,000 12,000,000
6.2%, 7-1-2010 ........................ 2,280 2,308,500
Total ................................. 14,308,500
MASSACHUSETTS - 5.01%
Massachusetts Water Resources Authority:
General Revenue Bonds:
1992 Series A,
6.5%, 7-15-2019 ....................... 6,740 7,346,600
1993 Series B,
5.25%, 3-1-2013 ....................... 5,000 4,631,250
General Revenue Refunding Bonds,
1992 Series B,
5.5%, 11-1-2015 ....................... 12,135 11,452,406
Massachusetts Bay Transportation Authority,
General Transportation System Bonds,
1992 Series B Refunding,
6.2%, 3-1-2016 ........................ 20,500 21,704,375
Massachusetts State College Building
Authority, Project and Refunding
Revenue Bonds, Senior Series 1994-A,
7.5%, 5-1-2014 ........................ 1,750 2,117,500
Boston Water and Sewer Commission,
General Revenue Bonds, 1992 Series A
(Senior Series),
5.75%, 11-1-2013 ...................... 1,575 1,571,062
Total ................................. 48,823,193
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MICHIGAN - 2.86%
State Building Authority, State of Michigan,
1993 Revenue Refunding Bonds, Series I,
5.3%, 10-1-2016 ....................... $10,000 $ 9,262,500
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 ....................... 8,000 9,120,000
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 3,750,000
5.0%, 5-1-2011 ........................ 1,885 1,715,350
Charter County of Wayne, Michigan, Detroit
Metropolitan Wayne County Airport,
Series 1993A,
5.25%, 12-1-2013 ...................... 2,500 2,262,500
Michigan State Hospital Finance Authority:
Hospital Revenue Bonds (Holland Community
Hospital), Series 1993,
5.25%, 1-1-2010 ....................... 1,200 1,101,000
Hospital Revenue Refunding Bonds
(McLaren Obligated Group),
Series 1993A,
5.375%, 10-15-2013 .................... 750 683,437
Total ................................. 27,894,787
MINNESOTA - 0.50%
City of Rochester, Minnesota, Health
Care Facilities Revenue Bonds (Mayo
Foundation/Mayo Medical Center),
Series 1992D, Indexed Inverse
Floating/Fixed Term Bonds,
6.15%, 11-15-2009 (D) ................. 4,500 4,837,500
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MISSISSIPPI - 1.22%
Lowndes County, Mississippi, Solid Waste
Disposal and Pollution Control
Refunding Revenue Bonds (Weyerhaeuser
Company Project), Series 1992B, Indexed
Inverse Floating/Fixed Term Bonds,
6.7%, 4-1-2022 (E) .................... $11,000 $ 11,866,250
MISSOURI - 2.23%
Health Facilities Revenue Bonds
(Barnes-Jewish, Inc./Christian Health
Services), Series 1993A:
6.0%, 5-15-2011 ....................... 3,000 3,101,250
5.25%, 5-15-2014 ...................... 2,900 2,671,625
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 4,550,000
Series 1993D (The School District of
Kansas City, Missouri, Elementary
School Project),
5.0%, 2-1-2014 ........................ 1,000 910,000
The Industrial Development Authority of the
City of Independence, Missouri, Industrial
Development Revenue Bonds, Series 1995
(Resthaven Project),
4.0%, 2-1-2025 ........................ 4,800 4,800,000
Health and Educational Facilities Authority
of the State of Missouri, Health Facilities
Revenue Bonds (BJC Health System),
Series 1994A,
6.75%, 5-15-2012 ...................... 4,000 4,375,000
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 1,380,000
Total ................................. 21,787,875
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW JERSEY - 1.94%
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 $ 6,935,906
Series A,
7.5%, 12-1-2010 ....................... 5,500 5,630,625
Middlesex County Utilities Authority,
Sewer Revenue Refunding Bonds, Series
1992A, Indexed Inverse Floating/Fixed
Term Bonds,
6.25%, 8-15-2010 (F) .................. 3,000 3,273,750
New Jersey Building Authority, State
Building Revenue Bonds, 1994 Series,
5.0%, 6-15-2013 ....................... 3,300 3,040,125
Total ................................. 18,880,406
NEW MEXICO - 0.89%
New Mexico Educational Assistance
Foundation, Student Loan Purchase Bonds:
Senior 1995 Series IV-A1,
7.05%, 3-1-2010 ....................... 6,485 6,955,163
1994 Series II-B,
5.75%, 12-1-2008 ...................... 1,750 1,688,750
Total ................................. 8,643,913
NEW YORK - 8.40%
New York State Thruway Authority,
Local Highway and Bridge Service
Contract Bonds, Series 1995,
6.25%, 4-1-2014 ....................... 17,270 17,334,763
New York City Municipal Water Finance
Authority, Water and Sewer System
Revenue Bonds:
Fiscal 1993 Series A,
6.0%, 6-15-2010 ....................... 12,000 12,405,000
Fiscal 1994 Series F,
5.5%, 6-15-2015 ....................... 4,000 3,825,000
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 10,125,000
5.75%, 6-15-2011 ...................... 5,000 5,087,500
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
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 ..................... $12,000 $ 11,340,000
Housing New York Corporation, Senior
Revenue Refunding Bonds, Series 1993,
5.0%, 11-1-2013 ....................... 6,600 5,841,000
New York Local Government Assistance
Corporation (A Public Benefit Corporation
of the State of New York):
Series 1993B Refunding Bonds,
5.375%, 4-1-2016 ...................... 3,000 2,812,500
Series 1993D Bonds,
5.375%, 4-1-2014 ...................... 2,370 2,242,613
The City of New York, General Obligation
Bonds, Fiscal 1996 Series B, Fixed Rate
Tax-Exempt Bonds,
7.25%, 8-15-2007 ...................... 3,500 3,850,000
New York City Industrial Development
Agency, Special Facility Revenue Bonds,
Series 1994 (Terminal One Group
Association, L.P. Project),
6.0%, 1-1-2019 ........................ 3,920 3,758,300
Dormitory Authority of the State
of New York, State University Educational
Facilities, Revenue Bonds, Series 1993B:
7.5%, 5-15-2011 ....................... 2,000 2,302,500
5.5%, 5-15-2008 ....................... 1,000 971,250
Total ................................. 81,895,426
NORTH CAROLINA - 2.46%
North Carolina Eastern Municipal Power
Agency, Power System Revenue Bonds:
Refunding Series 1993 B,
7.0%, 1-1-2008 ........................ 19,000 20,330,000
Refunding Series 1987 A,
7.25%, 1-1-2021 ....................... 1,740 1,798,725
County of Pitt, North Carolina, Pitt
County Memorial Hospital Revenue Bonds,
Series 1995,
5.5%, 12-1-2015 ....................... 2,000 1,910,000
Total.................................. 24,038,725
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
OHIO - 1.71%
County of Cuyahoga, Ohio, Hospital
Revenue Bonds, Series 1990 (Meridia
Health System),
7.25%, 8-15-2019 ...................... $ 4,980 $ 5,328,600
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 4,089,375
City of Columbus, Ohio, Various Purpose
Adjustable Rate Unlimited Tax Bonds,
Series 1995-1,
4.1%, 6-1-2016 ........................ 2,900 2,900,000
1993 Beneficial Interest Certificates
(Belleville Hydroelectric Project),
Ohio Municipal Electric Generation
Agency Joint Venture 5,
5.375%, 2-15-2013 ..................... 2,750 2,653,750
City of Moraine, Ohio, Solid Waste
Disposal Revenue Bonds (General Motors
Corporation Project), Series 1994,
6.75%, 7-1-2014 ....................... 1,550 1,695,313
Total ................................. 16,667,038
OKLAHOMA - 0.72%
Trustees of the Tulsa Municipal Airport
Trust, Revenue Bonds, Series 1985,
9.5%, 6-1-2020 ........................ 5,000 5,131,250
The Oklahoma Development Finance Authority,
Public Facilities Financing Program
Revenue Bonds (The University of
Oklahoma Projects), Series 1995 A,
5.625%, 7-1-2016 ...................... 1,890 1,899,450
Total ................................. 7,030,700
OREGON - 0.15%
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 1,449,375
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
PENNSYLVANIA - 1.06%
Washington County Hospital Authority
(Commonwealth of Pennsylvania), Hospital
Revenue Bonds, Series of 1993 (The
Washington Hospital Project),
5.5%, 7-1-2012 ........................ $ 5,000 $ 4,781,250
The Harrisburg Authority, Dauphin County,
Pennsylvania, Water Revenue Refunding
Bonds, Series A of 1994,
5.3%, 8-15-2016 ....................... 4,000 3,685,000
City of Philadelphia, Pennsylvania, Water
and Wastewater Revenue Bonds, Series 1995,
5.5%, 8-1-2014 ........................ 2,000 1,915,000
Total ................................. 10,381,250
PUERTO RICO - 1.16%
Puerto Rico Highway and Transportation
Authority, Highway Revenue Bonds
(Series W),
5.5%, 7-1-2008 ........................ 8,500 8,298,125
Puerto Rico Electric Power Authority,
Power Revenue Bonds, Series X:
6.0%, 7-1-2012 ........................ 2,000 2,005,000
6.0%, 7-1-2015 ........................ 1,000 992,500
Total ................................. 11,295,625
RHODE ISLAND - 0.10%
Rhode Island Student Loan Authority,
Student Loan Program Revenue Bonds,
1995 Subordinate Series III Bonds,
6.45%, 12-1-2015 ...................... 1,000 993,750
SOUTH CAROLINA - 2.31%
Calhoun County, South Carolina, Solid
Waste Disposal Facilities Revenue Bonds
(Eastman Kodak Company Project),
Series 1992,
6.75%, 5-1-2017 ....................... 10,895 11,657,650
South Carolina State Education Assistance
Authority, Guaranteed Student Loan
Revenue and Refunding Bonds,
1995 Series:
Series B Subordinate Lien Refunding Bonds,
5.7%, 9-1-2005 ........................ 5,000 5,031,250
Series C Subordinate Lien Refunding Bonds,
6.0%, 9-1-2008 ........................ 2,000 2,005,000
1993 Series,
5.55%, 9-1-2008 ....................... 4,000 3,860,000
Total ................................. 22,553,900
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
TENNESSEE - 1.37%
Tennessee Housing Development Agency:
Homeownership Program Bonds, Issue T,
7.375%, 7-1-2023 ...................... $ 4,665 $ 4,880,756
Mortgage Finance Program Bonds,
1994 Series B,
6.45%, 7-1-2014 ....................... 3,015 3,060,225
The Health and Educational Facilities
Board of the Metropolitan Government
of Nashville and Davidson County,
Tennessee, Multi-Modal Interchangeable
Rate, Health Facility Revenue Bonds
(Richland Place, Inc. Project),
Series 1993,
4.35%, 5-1-2023 ....................... 5,400 5,400,000
Total ................................. 13,340,981
TEXAS - 8.03%
Brazos River Authority (Texas),
Collateralized Pollution Control Revenue
Bonds (Texas Utilities Electric Company
Project), Series 1991A,
7.875%, 3-1-2021 ...................... 11,855 13,262,781
Alliance Airport Authority, Inc.,
Special Facilities Revenue Bonds,
Series 1991 (American Airlines, Inc.
Project),
7.0%, 12-1-2011 ....................... 12,350 13,229,937
Harris County Health Facilities, Development
Corporation, Hospital Revenue Refunding
Bonds (Texas Children's Hospital Project),
Series 1995,
5.5%, 10-1-2013 ....................... 10,000 9,350,000
Harris County, Texas, Toll Road Senior Lien
Revenue Refunding Bonds, Series 1994,
5.0%, 8-15-2016 ....................... 8,900 7,998,875
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
TEXAS (Continued)
City of Austin, Texas, Airport System
Prior Lien Revenue Bonds, Series 1995A,
6.2%, 11-15-2015 ...................... $ 7,800 $ 7,848,750
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 ........................ 6,000 6,000,000
Lubbock Health Facilities Development
Corporation, Hospital Revenue Bonds
(Methodist Hospital, Lubbock, Texas
Project),
6.75%, 12-1-2010 ...................... 5,000 5,518,750
Gulf Coast Waste Disposal Authority,
Solid Waste Disposal Revenue Refunding
Bonds, Series 1994 (The Quaker Oats
Company Project),
2.2%, 4-1-2013 ........................ 5,000 5,000,000
City of Houston, Texas, Water and Sewer
System, Junior Lien Revenue Refunding
Bonds, Series 1991C,
0.0%, 12-1-2008 ....................... 9,000 4,342,500
Panhandle-Plains Higher Education Authority,
Inc., Student Loan Revenue Refunding Bonds,
Subordinate Series 1993E,
5.55%, 3-1-2005 ....................... 4,000 3,900,000
Brenham Independent School District
(Washington and Austin Counties,
Texas), Unlimited Tax School Building
Bonds, Series 1994,
5.25%, 2-15-2013 ...................... 1,920 1,826,400
Total ................................. 78,277,993
UTAH - 0.31%
Intermountain Power Agency, Special
Obligation Refunding Bonds, Fifth
Crossover Series,
7.2%, 7-1-2019 ........................ 2,000 2,110,000
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
UTAH (Continued)
Utah Housing Finance Agency, Single Family
Mortgage Subordinate Bonds, 1993 Issue B,
5.7%, 7-1-2013 ........................ $ 995 $ 951,469
Total ................................. 3,061,469
VIRGINIA - 2.83%
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 ....................... 9,660 9,527,175
Upper Occoquan Sewage Authority (Virginia),
Regional Sewerage System Revenue
Refunding Bonds, Series of 1993,
5.0%, 7-1-2015 ........................ 9,000 8,111,250
Southeastern Public Service Authority of
Virginia:
Senior Revenue Bonds, Series 1993 (Regional
Solid Waste System):
5.95%, 7-1-2009 ....................... 1,500 1,464,375
6.0%, 7-1-2013 ........................ 1,000 975,000
Senior Revenue Refunding Bonds,
Series 1993A (Regional Solid Waste System),
5.125%, 7-1-2013....................... 1,000 917,500
Virginia Housing Development Authority,
Commonwealth Mortgage Bonds, 1992 Series
C, Subseries C-2,
5.6%, 1-1-2015 ........................ 2,955 2,822,025
Industrial Development Authority of the
County of Henrico, Virginia, Variable
Rate Demand, Health Facility Revenue
Bonds (The Hermitage at Cedarfield),
Series 1994,
4.3%, 5-1-2024 ........................ 2,000 2,000,000
City of Chesapeake, Virginia, Water
and Sewer System Revenue Refunding
Bonds, Series of 1994,
5.1%, 5-1-2014 ........................ 2,000 1,825,000
Total ................................. 27,642,325
WASHINGTON - 5.73%
Washington Public Power Supply System:
Nuclear Project No. 3, Refunding Revenue Bonds:
Series 1989B,
7.125%, 7-1-2016 ...................... 20,750 23,032,500
Series 1993C,
5.375%, 7-1-2015 ...................... 9,000 8,111,250
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
WASHINGTON (Continued)
Nuclear Project No. 1, Refunding Revenue Bonds:
Series 1989B,
7.125%, 7-1-2016 ...................... $ 8,200 $ 9,102,000
Series 1993B,
5.7%, 7-1-2010 ........................ 2,500 2,440,625
Public Utility District No. 1 of
Snohomish County, Washington, Generation
System Revenue Bonds, Series 1993B,
5.7%, 1-1-2014 ........................ 6,500 6,166,875
State of Washington, Various Purpose General
Obligation Bonds, Series 1990A,
6.75%, 2-1-2015 ....................... 4,995 5,600,644
Washington Health Care Facilities Authority,
Revenue Bonds Series 1993 (Highline
Community Hospital, Seattle),
5.5%, 8-15-2014 ....................... 1,500 1,398,750
Total ................................. 55,852,644
WEST VIRGINIA - 0.22%
Mason County, West Virginia, Pollution
Control Revenue Bonds (Appalachian Power
Company Project), Series G,
7.4%, 1-1-2014 ........................ 2,000 2,180,000
WYOMING - 0.21%
Pollution Control Revenue Refunding
Bonds (PacifiCorp Projects), Lincoln
County, Wyoming, Series 1993,
5.625%, 11-1-2021 ..................... 2,250 2,089,688
TOTAL MUNICIPAL BONDS - 99.45% $969,770,569
(Cost: $925,230,274)
TOTAL SHORT-TERM SECURITIES - 0.77% $ 7,491,000
(Cost: $7,491,000)
TOTAL INVESTMENT SECURITIES - 100.22% $977,261,569
(Cost: $932,721,274)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.22%) (2,152,771)
NET ASSETS - 100.00% $975,108,798
See Notes to Schedule of Investments on page 24.
<PAGE>
UNITED MUNICIPAL BOND FUND, INC.
SEPTEMBER 30, 1995
Notes to Schedule of Investments
(A) Coupon resets weekly to 11.95% - Kenny S&P Index. Minimum coupon rate is
0%. On February 15, 1999, rate becomes fixed at 6.65%.
(B) Coupon resets weekly to 10.62% - Kenny S&P Index. Minimum coupon rate is
0%. On April 1, 1998, rate becomes fixed at 6.25%.
(C) Coupon resets weekly to 5.45 + greater of 0 and (PSA index - 3.5%). Minimum
coupon rate is 0%. On July 1, 1997, rate becomes fixed at 5.45%.
(D) Coupon resets weekly to 11.37% - PSA Municipal Swap Index. Minimum coupon
rate is 0%. On November 15, 2000, rate becomes fixed at 6.15%.
(E) Coupon resets weekly to 11.95% - Kenny S&P Index. Minimum coupon rate is
0%. On April 1, 1999, rate becomes fixed at 6.70%.
(F) Coupon resets weekly to 10.90% - Bankers Trust Company TENR Index. Minimum
coupon rate is 0%. On August 15, 1997, rate becomes fixed at 6.25%.
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, 1995
Assets
Investment securities-at value
(Notes 1 and 3) ............................... $ 977,261,569
Cash ........................................... 13,268
Receivables:
Interest ...................................... 16,043,069
Fund shares sold .............................. 4,687,034
Investment securities sold .................... 4,393,120
Prepaid insurance premium ...................... 35,096
--------------
Total assets ................................ 1,002,433,156
--------------
Liabilities
Payable for investment securities purchased .... 23,946,640
Payable for Fund shares redeemed ............... 2,671,816
Accrued service fee ............................ 176,300
Accrued transfer agency and dividend disbursing 55,870
Accrued accounting services fee ................ 7,083
Other .......................................... 466,649
--------------
Total liabilities ........................... 27,324,358
--------------
Total net assets ........................... $ 975,108,798
==============
Net Assets
$1.00 par value capital stock, authorized --
600,000,000; shares outstanding -- 134,569,245
Capital stock ................................. $ 134,569,245
Additional paid-in capital .................... 800,173,902
Accumulated undistributed income:
Accumulated undistributed net investment
income ...................................... 982,643
Accumulated undistributed net realized loss on
investment transactions ..................... (5,157,287)
Net unrealized appreciation in value of
investments at end of period ................ 44,540,295
--------------
Net assets applicable to outstanding units
of capital ................................. $ 975,108,798
==============
Net asset value per share (net assets divided by
shares outstanding) ............................ $7.25
Sales load (offering price x 4.25%)............... 0.32
-----
Offering price per share (net asset value divided
by 95.75%) ...................................... $7.57
=====
On sales of $100,000 or more the sales load is reduced as set forth in the
Prospectus.
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS
For the Fiscal Year Ended SEPTEMBER 30, 1995
Investment Income
Interest ......................................... $ 58,182,335
------------
Expenses (Note 2):
Investment management fee ....................... 4,207,453
Service fee ..................................... 924,451
Transfer agency and dividend disbursing ......... 647,820
Accounting services fee ......................... 85,000
Custodian fees .................................. 49,783
Audit fees ...................................... 41,913
Legal fees ...................................... 18,187
Other ........................................... 157,832
------------
Total expenses ................................ 6,132,439
------------
Net investment income ........................ 52,049,896
------------
Realized and Unrealized Gain (Loss) on Investments
Realized net gain on securities .................. 1,954,400
Realized net loss on futures contracts closed .... (6,168,687)
Realized net loss on put options purchased (467,211)
------------
Net realized loss on investments ................ (4,681,498)
Net unrealized appreciation in value of
investments during the period ................... 55,263,393
------------
Net gain on investments ....................... 50,581,895
------------
Net increase in net assets resulting
from operations ............................ $102,631,791
============
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the fiscal year
ended September 30,
-----------------------------
1995 1994
-------------- ------------
Increase (Decrease) in Net Assets
Operations:
Net investment income.............. $ 52,049,896 $ 52,401,793
Realized net gain (loss) on
investments ..................... (4,681,498) 14,118,689
Unrealized appreciation
(depreciation) .................. 55,263,393 (107,526,858)
------------ --------------
Net increase (decrease) in net
assets resulting from
operations ..................... 102,631,791 (41,006,376)
------------ --------------
Dividends to shareholders:*
From net investment income ........ (52,122,952) (52,309,180)
From realized gains on securities
transactions .................... --- (34,570,958)
In excess of realized gains on securities
transactions .................... (5,125,035) ---
------------ --------------
(57,247,987) (86,880,138)
------------ --------------
Capital share transactions:
Proceeds from sale of shares
(16,748,709 and 9,645,029
shares, respectively) ........... 118,813,088 71,488,819
Proceeds from reinvestment of
dividends and/or capital gains
distribution (6,061,556 and
10,027,100 shares, respectively) 42,256,392 73,910,210
Payments for shares redeemed
(25,912,586 and 16,830,264
shares, respectively) ........... (182,296,814) (121,994,288)
------------ --------------
Net increase (decrease) in net
assets resulting from capital
share transactions ............. (21,227,334) 23,404,741
------------ --------------
Total increase (decrease) ...... 24,156,470 (104,481,773)
Net Assets
Beginning of period ................ 950,952,328 1,055,434,101
------------ --------------
End of period, including
undistributed net investment
income of $982,643 and
$1,055,699, respectively .......... $975,108,798 $ 950,952,328
============ ==============
*See "Financial Highlights" on page 28.
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,
------------------------------------
1995 1994 1993 1992 1991
------ ------ ------ ------ ------
Net asset value,
beginning of period $6.91 $7.83 $7.40 $7.18 $6.66
----- ----- ----- ----- -----
Income from investment
operations:
Net investment
income........... .39 .38 .41 .43 .45
Net realized and
unrealized gain
(loss) on
investments...... .38 (0.67) .65 .35 .52
----- ----- ----- ----- -----
Total from investment
operations ........ .77 (0.29) 1.06 .78 .97
----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment
income........... (0.39) (0.38) (0.40) (0.43) (0.45)
Distribution from
capital gains.... (0.00) (0.25) (0.23) (0.13) (0.00)
Distribution in excess
of capital gains. (0.04) (0.00) (0.00) (0.00) (0.00)
----- ----- ----- ----- -----
Total distributions. (0.43) (0.63) (0.63) (0.56) (0.45)
----- ----- ----- ----- -----
Net asset value,
end of period ..... $7.25 $6.91 $7.83 $7.40 $7.18
===== ===== ===== ===== =====
Total return*....... 11.51% -3.91% 15.15% 11.41% 14.97%
Net assets, end of
period (000
omitted) ......... $975,109$950,952$1,055,434$890,004$769,122
Ratio of expenses to
average net assets 0.65% 0.64% 0.56% 0.57% 0.57%
Ratio of net investment
income to average
net assets ........ 5.51% 5.17% 5.38% 5.92% 6.47%
Portfolio
turnover rate ..... 70.67% 62.61% 94.51%125.44% 144.36%
*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, 1995
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. Net investment income
distributions and capital gains distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences are due to differing treatments
for items such as deferral of wash sales and post-October losses, net
operating losses and expiring capital loss carryforwards.
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 $13.3 billion of
combined net assets at September 30, 1995) 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
$1,075,152, out of which W&R paid sales commissions of $612,514 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 $35,641.
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 $655,600,116 while proceeds from maturities and
sales aggregated $696,363,757. Purchases of options aggregated $1,101,579 while
proceeds from maturities and sales aggregated $634,369. Purchases of short-term
securities aggregated $585,651,570 while proceeds from maturities and sales
aggregated $587,675,781. No U.S. Government securities were bought or sold
during the period ended September 30, 1995.
For Federal income tax purposes, cost of investments owned at September 30,
1995 was $938,381,324, resulting in net unrealized appreciation of $38,880,245,
of which $41,247,194 related to appreciated securities and $2,366,949 related to
depreciated securities.
NOTE 4 -- Federal Income Tax Matters
For Federal income tax purposes, the Fund realized capital gain net income
of $6,883,387 during the year ended September 30, 1995, of which a portion was
paid to shareholders during the period ended September 30, 1995. Remaining net
capital gains will be distributed to the Fund's shareholders. Internal Revenue
Code regulations permit the Fund to defer into its next fiscal year net capital
losses or net long-term capital losses incurred from November 1 to the end of
its fiscal year ("post-October losses"). From November 1, 1994 through
September 30, 1995, the Fund incurred net long-term capital losses of
$6,444,562, which have been deferred to the fiscal year ending September 30,
1996.
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, 1995, 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, 1995 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
November 3, 1995
<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 amounts to be reported in your Federal income tax return 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 ExemptLong-Term Non- ExemptLong-Term
Date Total Income InterestCapital GainQualifyingInterestCapital Gain
- -------------------------------------------------------------------------
10-14-94$0.032$0.0002 $0.0318 $---- $0.0002$0.0318 $----
11-11-940.032 .0002 .0318 ---- .0002 .0318 ----
12-16-940.072 .0002 .0338 .0380 .0002 0.0338 .0380
01-13-950.032 .0009 .0311 ---- .0009 .0311 ----
02-10-950.032 .0009 .0311 ---- .0009 .0311 ----
03-17-950.032 .0009 .0311 ---- .0009 .0311 ----
04-13-950.032 .0009 .0311 ---- .0009 .0311 ----
05-12-950.032 .0009 .0311 ---- .0009 .0311 ----
06-16-950.032 .0009 .0311 ---- .0009 .0311 ----
07-14-950.032 .0009 .0311 ---- .0009 .0311 ----
08-11-950.032 .0009 .0311 ---- .0009 .0311 ----
09-15-950.032 .0009 .0311 ---- .0009 .0311 ----
------- ------- ------- ------- ------- ------ ------
Total$0.424 $0.0087 $0.3773 $0.0380 $0.0087$0.3773 $0.0380
======= ======= ======= ======= ======= ====== ======
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 and distributions 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
Linda Graves, Topeka, Kansas
John F. Hayes, Hutchinson, Kansas
Glendon E. Johnson, Miami, Florida
James B. Judd, Kansas City, Missouri
William T. Morgan, Los Angeles, California
Doyle Patterson, Kansas City, Missouri
Eleanor B. Schwartz, 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 Municipal High Income Fund, Inc.
United High Income Fund, Inc.
United High Income Fund II, Inc.
United Continental Income Fund, Inc.
United Retirement Shares, Inc.
United Asset Strategy Fund, Inc.
United Income Fund
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.
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
Our INTERNET address is:
http://www.waddell.com
NUR1008A(9-95)
printed on recycled paper
