United
Municipal
Bond Fund,
Inc.
SEMIANNUAL
REPORT
---------------------------------------
For the six months ended March 31, 1995
<PAGE>
This report is submitted for the general information of the shareholders of
United Municipal Bond Fund, Inc. It is not authorized for distribution
toprospective investors in the Fund unless accompanied with or preceded by the
United Municipal Bond Fund, Inc. current prospectus.
<PAGE>
DIRECTORS
Ronald K. Richey, Birmingham, Alabama, Chairman of the Board
Henry L. Bellmon, Red Rock, Oklahoma
Dodds I. Buchanan, Boulder, Colorado
Jay B. Dillingham, Kansas City, Missouri
John F. Hayes, Hutchinson, Kansas
Glendon E. Johnson, Miami, Florida
William T. Morgan, Los Angeles, California
Doyle Patterson, Kansas City, Missouri
Keith A. Tucker, Overland Park, Kansas
Frederick Vogel, III Milwaukee, Wisconsin
Paul S. Wise, Carefree, Arizona
Leslie S. Wright, Birmingham, Alabama
OFFICERS
Keith A. Tucker, President
Robert L. Hechler, Vice President
Henry J. Herrmann, Vice President
John M. Holliday, Vice President
Theodore W. Howard, Vice President and Treasurer
Sharon K. Pappas, Vice President and Secretary
Carl E. Sturgeon, Vice President
<PAGE>
PRESIDENT'S LETTER
- -----------------------------------------------------------------
MARCH 31, 1995
Dear Shareholder:
As President of your Fund, I would like to take this opportunity to share
my thoughts on a subject that I believe is very important to all of us; the need
for tax incentives that will help Americans take personal responsibility for
their futures.
Voters all across America sent two clear messages in the elections held in
November 1994. They want their taxes reduced and they want their concern for
financial security addressed without adding new bureaucracies or government
programs. One of the methods to do this is to expand the availability of tax
incentives for individuals to invest in Individual Retirement Accounts. This
could be done in several ways such as:
restoring the universal availability of fully tax-deductible Individual
Retirement Accounts,
allowing non-working spouses to make a full contribution of $2,000 to an
Individual Retirement Account instead of only $250 as currently allowed,
eliminating the taxation on the distribution of earnings from Individual
Retirement Accounts.
All of us recognize that future generations will need to supplement social
security benefits by private savings in order to provide an adequate level of
retirement income. Expanding the benefits of IRA's provides tax incentives to
encourage savings which allows all individuals the opportunity to provide
financial security for themselves and their families. Encouraging savings
through tax incentives has additional indirect benefits. Americans' personal
savings rate has fallen from 8% in the 1960's to just 2% of disposable income
today. Expanding the benefits of IRA's will help reverse this trend, will
increase the amount of U.S. capital available for investment and should make the
U.S. less dependent on capital from foreign sources.
Changes to our current IRA laws, such as the ones I mentioned above, are
being discussed in Congress. I urge you to write to your Members of Congress
and to the President to tell them that you support expanded IRA legislation that
provides incentives and opportunities for all Americans to improve their
financial well being.
Finally, I appreciate your continued confidence in our products and
services.
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 taxation. (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 municipal bonds
Industrial Revenue 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 Six Months Ended March 31, 1995
- ---------------------------------------
DIVIDENDS PAID $0.19
=====
CAPITAL GAINS DISTRIBUTION $0.04
=====
NET ASSET VALUE ON
3/31/95 $7.13 adjusted to: $7.17 (A)
9/30/94 $6.91
-----
CHANGE PER SHARE $0.26
=====
This number includes the capital gains distribution of $0.04 paid in December
1994 added to the actual net asset value on March 31, 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 3-31-95 3.51% 8.11%
5-year period ended 3-31-95 7.94% 8.88%
10-year period ended 3-31-95 10.18% 10.66%
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, 1995, United Municipal Bond Fund, Inc. had net assets totaling
$963,286,151 invested in a diversified portfolio.
As a shareholder of United Municipal Bond Fund, Inc., for every $100 you had
invested on March 31, 1995, your Fund owned:
$16.88 Other Municipal Bonds
14.84 Public Power Revenue Bonds
14.58 Airport Revenue Bonds
11.46 Cash and Cash Equivalents and Adjustable Rate Bonds
11.22 Housing Revenue Bonds
9.95 Water and Sewer Revenue Bonds
6.83 Hospital Revenue Bonds
5.77 Lease/Certificates of Participation Bonds
4.44 Transportation Revenue Bonds
3.96 Resource Recovery Bonds
0.07 Options
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>
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS
ALABAMA - 0.15%
The Southeast Alabama Gas District,
Natural Gas System Revenue Bonds,
Series 1994-B,
6.0%, 3-1-2014 ........................ $ 1,450 $ 1,451,812
ALASKA - 0.30%
Alaska Housing Finance Corporation:
General Housing Purpose Bonds, 1994
Series A (Refunding/Non-AMT),
5.0%, 12-1-2008 ....................... 1,640 1,471,900
Collateralized Home Mortgage Bonds,
1990 Subseries A-3,
5.7%, 12-1-2011 ....................... 1,455 1,385,888
Total ................................. 2,857,788
ARIZONA - 1.74%
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 3,770,000
The Industrial Development Authority
of the City of Tuscon, Arizona,
Multifamily Housing Revenue Bonds,
Series 1985 (HSL La Cholla Project),
Adjustable Rate Bond,
4.35%, 12-1-2014....................... 3,185 3,185,000
Arizona Municipal Financing Program,
Certificates of Participation (Composite
Issue - Series 34),
7.25%, 8-1-2009 ....................... 2,750 3,138,438
Gilbert Unified School District No. 41
of Maricopa County, Arizona, Refunding
Bonds, Second Series 1994,
0.0%, 7-1-2007 ........................ 5,000 2,506,250
City of Phoenix Civic Improvement
Corporation, Wastewater System Lease
Revenue Refunding Bonds, Series 1993,
5.0%, 7-1-2018 ........................ 2,000 1,722,500
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
ARIZONA (Continued)
Paradise Valley Unified School District
No. 69 of Maricopa County, Arizona,
Refunding Bonds, Second Series 1993,
0.0%, 7-1-2007 ........................ $ 3,000 $ 1,503,750
Apache County (Arizona), Public Finance
Corporation, Certificates of Participation,
Series 1994, Arizona Department of
Corrections,
5.5%, 5-1-2010......................... 1,000 925,000
Total ................................. 16,750,938
CALIFORNIA - 14.45%
County of Riverside, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed
Securities Program):
1989 Series A,
7.8%, 5-1-2021 ........................ 10,985 13,319,312
1988 Series A,
8.3%, 11-1-2012 ....................... 10,000 12,400,000
City of Pomona, California, Single
Family Mortgage Revenue Refunding
Bonds (GNMA and FNMA Mortgage-Backed
Securities), Series 1990A,
7.6%, 5-1-2023 ........................ 15,000 17,325,000
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 15,436,050
Transmission Agency of Northern California,
California-Oregon Transmission Project
Revenue Bonds, 1990 Series A,
7.0%, 5-1-2013 ........................ 12,000 13,365,000
Orange County Water District, Revenue
Certificates of Participation,
Series 1993A:
5.5%, 8-15-2014 ....................... 9,430 8,675,600
5.5%, 8-15-2014 (insured) ............. 3,430 3,194,187
Imperial Irrigation District,
1993 Refunding Certificates of
Participation (1990 Electric
System Project),
5.2%, 11-1-2009 ....................... 10,000 9,100,000
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 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 $ 7,606,312
California Statewide Communities Development
Authority, Hospital Revenue Certificates
of Participation, Cedars-Sinai Medical Center,
Series 1992,
6.5%, 8-1-2012 ........................ 5,200 5,375,500
Department of Water and Power of The City
of Los Angeles, Electric Plant Refunding
Revenue Bonds, Issue of 1993,
5.75%, 9-1-2013 ....................... 5,500 5,280,000
State of California, Department of Water
Resources, Central Valley Project Water
System Revenue Bonds, Series M,
5.0%, 12-1-2013 ....................... 5,610 4,901,738
Sacramento Municipal Utility District,
Electric Revenue Refunding Bonds, 1993
Series D,
5.25%, 11-15-2012 ..................... 4,500 4,128,750
California Health Facilities Financing
Authority, Hospital Revenue Bonds (Downey
Community Hospital), Series 1993,
5.75%, 5-15-2015 ...................... 4,250 3,787,813
Community Redevelopment Agency of the City
of Palmdale, Restructured Single Family
Mortgage Revenue Bonds, Series 1986A,
8.0%, 3-1-2016 ........................ 3,000 3,690,000
Southern California Public Power Authority,
Multiple Project Revenue Bonds, 1989 Series,
6.75%, 7-1-2012 ....................... 3,455 3,683,894
Sacramento Municipal Utility District,
Electric Revenue Refunding Bonds,
1993 Series G,
6.5%, 9-1-2013 ........................ 2,500 2,650,000
Southern California Public Power Authority,
Mead-Adelanto Project Revenue Bonds,
1994 Series A,
5.15%, 7-1-2015 ....................... 2,800 2,485,000
City and County of San Francisco,
California, Sewer Revenue Refunding
Bonds, Series 1992,
5.5%, 10-1-2015 ....................... 2,000 1,870,000
Sacramento County Sanitation Districts
Financing Authority, 1993 Revenue Bonds,
5.125%, 12-1-2013 ..................... 1,000 897,500
Total ................................. 139,171,656
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
COLORADO - 6.44%
City and County of Denver, Colorado,
Airport System Revenue Bonds:
Series 1991D:
7.75%, 11-15-2013 ..................... $11,705 $ 12,495,088
0.0%, 11-15-2003 ...................... 5,000 2,806,250
0.0%, 11-15-2005 ...................... 4,610 2,241,613
Series 1991A:
8.75%, 11-15-2023 ..................... 8,000 8,830,000
0.0%, 11-15-2003 ...................... 7,855 4,408,619
Series 1992C:
6.75%, 11-15-2013 ..................... 8,765 8,545,875
6.125%, 11-15-2025 .................... 4,500 3,960,000
Series 1994A:
7.5%, 11-15-2006 ...................... 1,000 1,046,250
7.4%, 11-15-2005 ...................... 1,000 1,043,750
Series 1990A,
0.0%, 11-15-2003 ...................... 3,370 1,891,413
Colorado Housing and Finance Authority:
Single Family Program Senior Bonds,
1995 Series A,
8.0%, 6-1-2025 ........................ 4,575 5,089,688
Single Family Program Refunding Senior
Bonds, 1994 Series D-II,
8.125%, 6-1-2025 ...................... 2,000 2,232,500
Colorado Health Facilities Authority,
Revenue Bonds, Series 1994 (Sisters of
Charity Health Care Systems, Inc.),
5.25%, 5-15-2014 ...................... 4,500 4,050,000
Morgan County, Colorado, Pollution Control
Refunding Revenue Bonds, 1993 Series A
(Public Service Company of Colorado
Project),
5.5%, 6-1-2012 ........................ 3,500 3,355,625
Total ................................. 61,996,671
CONNECTICUT - 1.00%
Eastern Connecticut Resource Recovery
Authority, Solid Waste Revenue Bonds
(Wheelabrator Lisbon Project),
Series 1993A,
5.5%, 1-1-2014 ........................ 6,750 5,729,063
Connecticut Housing Finance Authority,
Housing Mortgage Finance Program Bonds,
1992 Series A, 1992 Subseries A-1,
5.85%, 11-15-2016 ..................... 4,000 3,885,000
Total ................................. 9,614,063
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
DISTRICT OF COLUMBIA - 2.10%
Metropolitan Washington Airports Authority,
Airport System Revenue Bonds,
Series 1994A,
5.875%, 10-1-2015 ..................... $20,835 $ 20,209,950
FLORIDA - 1.13%
Lake County, Florida, Resource Recovery
Industrial Development Refunding Revenue
Bonds (NRG/Recovery Group Project),
Series 1993A,
5.85%, 10-1-2009 ...................... 5,825 5,293,469
Jacksonville Port Authority, Airport Revenue
Refunding Bonds, Series 1993,
5.25%, 10-1-2017 ...................... 2,470 2,192,125
State of Florida, Full Faith and Credit,
State Board of Education, Public Education
Capital Outlay Bonds, 1992 Series E,
5.1%, 6-1-2014 ........................ 2,285 2,065,069
Orlando Utilities Commission, Water and
Electric Subordinated Revenue Refunding
Bonds, Series 1994A,
5.0%, 10-1-2012 ....................... 1,500 1,353,750
Total ................................. 10,904,413
GEORGIA - 4.37%
Municipal Electric Authority of Georgia:
Project One Special Obligation Bonds,
Fifth Crossover Series,
6.4%, 1-1-2013 ........................ 15,500 16,178,125
General Power Revenue Bonds, 1992B Series:
8.25%, 1-1-2011 ....................... 8,700 10,798,875
6.2%, 1-1-2010 ........................ 3,495 3,621,694
Fulton County School District (Georgia),
General Obligation Refunding Bonds,
Series 1991,
6.375%, 5-1-2010 ...................... 5,000 5,343,750
Development Authority of Monroe County (Georgia),
Pollution Control Revenue Bonds (Oglethorpe
Power Corporation Scherer Project),
Series 1992A,
6.75%, 1-1-2010 ....................... 4,000 4,220,000
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
GEORGIA (Continued)
Hospital Authority of Albany-Dougherty
County, Georgia, Revenue Bonds (Phoebe
Putney Memorial Hospital), Series 1993,
5.7%, 9-1-2013 ........................ $ 2,000 $ 1,927,500
Total ................................. 42,089,944
GUAM - 0.10%
Guam Power Authority Revenue Bonds
1994 Series A,
6.625%, 10-1-2014 ..................... 1,000 1,002,500
HAWAII - 2.23%
State of Hawaii, Airports System Revenue
Bonds, Second Series of 1991,
6.9%, 7-1-2012 ........................ 20,195 21,457,188
IDAHO - 0.75%
Idaho Health Facilities Authority, Hospital
Revenue Refunding Bonds, Series 1992
(IHC Hospitals, Inc.), Indexed Inverse
Floating/Fixed Term Bonds,
7.78%, 2-15-2021 (A) .................. 6,000 6,225,000
Southern Idaho Regional Solid Waste
District, Certificates of Participation,
Series 1993,
5.45%, 11-1-2013 ...................... 1,000 978,750
Total ................................. 7,203,750
ILLINOIS - 4.03%
City of Chicago, Chicago-O'Hare
International Airport:
General Airport Revenue Bonds,
1992 Series A:
6.0%, 1-1-2018 ........................ 7,000 6,650,000
6.0%, 1-1-2012 ........................ 2,000 1,925,000
Special Facility Revenue Refunding
Bonds, Series 1994 (American Airlines,
Inc. Project),
8.2%, 12-1-2024 ....................... 3,000 3,318,750
General Airport Revenue Refunding
Bonds, 1993 Series A,
5.0%, 1-1-2012 ........................ 3,000 2,636,250
Illinois Health Facilities Authority,
Variable Rate Demand Revenue Bonds
(Evangelical Hospitals Corporation),
Series 1985B,
4.2%, 1-1-2016 ........................ 8,425 8,425,000
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 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,
6.45%, 4-1-2014 (B) ................... $ 4,100 $ 4,048,750
Revenue Refunding Bonds, Series 1993C,
7.0%, 4-1-2008 ........................ 2,000 2,205,000
Village of Sauget, Illinois, Variable
Rate Demand Pollution Control Revenue
Refunding Bonds (Monsanto Company
Project), Series 1993,
4.1%, 5-1-2028 ........................ 5,000 5,000,000
Illinois Educational Facilities Authority,
Revenue Refunding Bonds, Loyola
University of Chicago, Series 1993B,
Structured Yield Curve Notes,
6.1%, 7-1-2014 (C) .................... 4,000 3,630,000
City of Chicago, Chicago Midway Airport
Revenue Bonds, 1994 Series A,
6.25%, 1-1-2014 ....................... 1,000 1,002,500
Total ................................. 38,841,250
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 9,210,000
Series 1990A (Senate Avenue Parking Facility),
7.4%, 7-1-2015 ........................ 4,775 5,497,219
Indiana Transportation Finance Authority,
Highway Revenue Bonds, Series 1990A,
7.25%, 6-1-2015 ....................... 9,000 10,327,500
Total ................................. 25,034,719
IOWA - 1.59%
Muscatine County, Iowa, Variable Rate Demand
Pollution Control Revenue Refunding Bonds
(Monsanto Company Project), Series 1992,
Adjustable Rate Bond,
4.1%, 10-1-2007 ....................... 10,000 10,000,000
Iowa Student Loan Liquidity Corporation,
Student Loan Revenue Bonds, 1993
Subordinate Series C,
6.125%, 12-1-2011 ..................... 5,300 5,313,250
Total ................................. 15,313,250
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
KANSAS - 1.00%
City of Shawnee, Kansas, Variable Rate
Demand Industrial Revenue Bonds, Series
December 1, 1984 (Shawnee Village
Associates Project),
4.2%, 12-1-2009 ....................... $ 4,200 $ 4,200,000
State of Kansas, Department of
Transportation, Highway Revenue Bonds,
Series 1993,
5.375%, 3-1-2013 ...................... 3,000 2,805,000
Sisters of Charity of Leavenworth Health
Services Corporation, Shawnee County,
Kansas, Revenue Bonds, Series 1994,
5.0%, 12-1-2014 ....................... 3,000 2,602,500
Total ................................. 9,607,500
KENTUCKY - 0.61%
Kentucky Economic Development Finance
Authority, Hospital Revenue Bonds,
Baptist Healthcare System Issue,
Series 1994,
5.0%, 8-15-2015 ....................... 4,650 4,045,500
Kentucky Housing Corporation, Housing
Revenue Bonds, 1993 Series B,
5.4%, 7-1-2014 ........................ 2,000 1,812,500
Total ................................. 5,858,000
LOUISIANA - 2.00%
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,
5.25%, 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 6,610,106
Total ................................. 19,255,106
MARYLAND - 1.34%
Northeast Maryland Waste Disposal Authority,
Solid Waste Revenue Bonds (Montgomery
County Resource Recovery Project),
Series 1993A:
6.0%, 7-1-2006 ........................ 7,170 7,143,112
6.3%, 7-1-2016 ........................ 3,850 3,744,125
6.2%, 7-1-2010 ........................ 2,080 2,051,400
Total ................................. 12,938,637
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MASSACHUSETTS - 5.73%
Massachusetts Water Resources Authority:
General Revenue Bonds:
1992 Series B,
5.5%, 11-1-2015 ....................... $12,135 $ 11,209,706
1992 Series A,
6.5%, 7-15-2019 ....................... 6,740 7,093,850
General Revenue Refunding Bonds,
1993 Series B,
5.25%, 3-1-2013 ....................... 5,000 4,512,500
Massachusetts Bay Transportation Authority,
General Transportation System Bonds,
1992 Series B Refunding,
6.2%, 3-1-2016 ........................ 20,500 20,884,375
Boston Housing Development Corporation
Mortgage Revenue Refunding Bonds,
Series 1994A (FHA Insured Mortgage Loans -
Section 8 Assisted Projects),
5.5%, 7-1-2024 ........................ 5,350 4,982,188
Massachusetts Housing Finance Agency,
Housing Project Revenue Bonds,
1993 Series A Bonds,
6.15%, 10-1-2015 ...................... 3,000 2,977,500
Massachusetts State College Building
Authority, Project and Refunding
Revenue Bonds, Senior Series 1994-A,
7.5%, 5-1-2014 ........................ 1,750 2,047,500
Boston Water and Sewer Commission,
General Revenue Bonds, 1992 Series A
(Senior Series),
5.75%, 11-1-2013 ...................... 1,575 1,533,656
Total ................................. 55,241,275
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MICHIGAN - 4.57%
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 $ 9,978,750
State Building Authority, State of Michigan,
1993 Revenue Refunding Bonds, Series I,
5.3%, 10-1-2016 ....................... 10,000 9,087,500
Charter County of Wayne, Michigan, Detroit
Metropolitan Wayne County Airport:
Series 1993B,
5.25%, 12-1-2013 ...................... 7,340 6,541,775
Series 1993A,
5.25%, 12-1-2013 ...................... 2,750 2,450,937
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 3,665,000
5.0%, 5-1-2011 ........................ 1,885 1,668,225
City of Detroit, Michigan, Sewage Disposal
System Revenue and Revenue Refunding
Bonds, Series 1993-A,
5.7%, 7-1-2013 ........................ 5,000 4,825,000
Michigan State Hospital Finance Authority:
Hospital Revenue Refunding Bonds
(McLaren Obligated Group),
Series 1993A,
5.375%, 10-15-2013 .................... 3,130 2,742,662
Hospital Revenue Bonds (Holland Community
Hospital), Series 1993,
5.25%, 1-1-2010 ....................... 1,200 1,063,500
Regents of the University of Michigan,
Hospital Revenue Refunding Bonds,
Series 1993A,
5.75%, 12-1-2012 ...................... 2,000 1,965,000
Total ................................. 43,988,349
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,
7.22%, 11-15-2009 (D) ................. 4,500 4,657,500
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MISSISSIPPI - 1.19%
Lowndes County, Mississippi, Solid Waste
Disposal and Pollution Control
Refunding Revenue Bonds (Weyerhaeuser
Company Project), Series 1992B, Indexed
Inverse Floating/Fixed Term Bonds,
7.78%, 4-1-2022 (E) ................... $11,000 $ 11,481,250
MISSOURI - 1.63%
Health Facilities Revenue Bonds
(Barnes-Jewish, Inc./Christian Health
Services), Series 1993A:
6.0%, 5-15-2011 ....................... 3,000 3,022,500
5.25%, 5-15-2014 ...................... 2,900 2,646,250
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 4,462,500
Series 1993D (The School District of
Kansas City, Missouri, Elementary
School Project),
5.0%, 2-1-2014 ........................ 1,000 892,500
State of Missouri, Certificates of
Participation (Acute Care Psychiatric
Hospital Project), Series A 1994,
5.625%, 10-15-2014 .................... 2,200 2,109,250
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 1,359,375
St. Louis County, Missouri, Regional
Convention and Sports Complex Authority,
Convention and Sports Facility Project
and Refunding Bonds, Series B 1993,
5.5%, 8-15-2007 ....................... 1,270 1,189,037
Total ................................. 15,681,412
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MONTANA - 0.23%
Anaconda-Deer Lodge County, Montana,
Solid Waste Facility Revenue Bonds
(ARCO-Anaconda Smelter Site Project),
Series 1992,
6.375%, 10-1-2016 ..................... $ 2,250 $ 2,216,250
NEVADA - 0.15%
Nevada Housing Division, Single Family
Program Senior Bonds, 1993 Issue C,
5.85%, 10-1-2015 ...................... 1,575 1,500,187
NEW JERSEY - 1.85%
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 6,512,469
Series A,
7.5%, 12-1-2010 ....................... 5,500 5,280,000
Middlesex County Utilities Authority,
Sewer Revenue Refunding Bonds, Series
1992A, Indexed Inverse Floating/Fixed
Term Bonds,
6.775%, 8-15-2010 (F) ................. 3,000 3,093,750
New Jersey Building Authority, State
Building Revenue Bonds, 1994 Series,
5.0%, 6-15-2013 ....................... 3,300 2,932,875
Total ................................. 17,819,094
NEW MEXICO - 0.88%
New Mexico Educational Assistance
Foundation, Student Loan Purchase Bonds:
Senior 1995 Series IV-A1,
7.05%, 3-1-2010 ....................... 6,485 6,793,037
1994 Series II-B,
5.75%, 12-1-2008 ...................... 1,750 1,664,688
Total ................................. 8,457,725
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW YORK - 6.63%
New York City Municipal Water Finance
Authority, Water and Sewer System
Revenue Bonds:
Fiscal 1993 Series A,
6.0%, 6-15-2010 ....................... $12,000 $ 12,030,000
Fiscal 1994 Series F,
5.5%, 6-15-2015 ....................... 4,000 3,770,000
Fiscal 1994 Series B,
5.375%, 6-15-2007 ..................... 1,750 1,653,750
New York State Environmental Facilities
Corporation, State Water Pollution
Control, Revolving Fund Revenue Bonds,
Series 1994 A (New York City Municipal
Water Finance Authority Project)
(Second Resolution Bonds):
5.75%, 6-15-2012 ...................... 10,000 9,900,000
5.75%, 6-15-2011 ...................... 5,000 4,981,250
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 11,115,000
New York State Energy Research and
Development Authority, Facilities
Refunding Revenue Bonds, Series 1993 B,
(Consolidated Edison Company of
New York, Inc. Project),
5.25%, 8-15-2020 ...................... 5,000 4,431,250
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 3,714,200
New York State Urban Development Corporation,
Correctional Capital Facilities Revenue
Bonds, 1993A Refunding Series,
5.5%, 1-1-2014......................... 4,000 3,605,000
Dormitory Authority of the State
of New York, State University Educational
Facilities, Revenue Bonds, Series 1993B:
7.5%, 5-15-2011 ....................... 2,000 2,265,000
5.5%, 5-15-2008 ....................... 1,000 931,250
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW YORK (Continued)
New York Local Government Assistance
Corporation (A Public Benefit Corporation
of the State of New York),
Series 1993D Bonds,
5.375%, 4-1-2014 ...................... $ 2,370 $ 2,162,625
New York State Urban Development
Corporation, Correctional Facilities
Revenue Bonds, 1993A Refunding Series,
5.5%, 1-1-2016 ........................ 1,400 1,247,750
City of Niagara Falls, Niagara County,
New York, Water Treatment Plant (Serial)
Bonds 1994,
7.25%, 11-1-2011 ...................... 1,000 1,091,250
New York State Thruway Authority, Local
Highway and Bridge Service Contract
Bonds, Series 1994,
5.75%, 4-1-2013 ....................... 1,000 978,750
Total ................................. 63,877,075
NORTH CAROLINA - 2.59%
North Carolina Eastern Municipal Power
Agency, Power System Revenue Bonds,
Refunding Series 1993 B,
7.0%, 1-1-2008 ........................ 19,000 20,140,000
North Carolina Municipal Power Agency
Number 1, Catawba Electric Revenue Bonds,
Series 1992,
5.75%, 1-1-2015 ....................... 5,000 4,781,250
Total.................................. 24,921,250
OHIO - 1.85%
Toledo-Lucas County Port Authority, Port
Facilities Refunding Revenue Bonds,
Series 1993 (Cargill, Incorporated Project),
5.9%, 12-1-2015 ....................... 5,145 5,080,687
City of Cleveland, Ohio, Airport
System Improvement Revenue Bonds,
Series 1994A,
5.75%, 1-1-2015 ....................... 4,700 4,494,375
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 4,016,250
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
OHIO (Continued)
1993 Beneficial Interest Certificates
(Belleville Hydroelectric Project),
Ohio Municipal Electric Generation
Agency Joint Venture 5,
5.375%, 2-15-2013 ..................... $ 2,750 $ 2,598,750
City of Moraine, Ohio, Solid Waste
Disposal Revenue Bonds (General Motors
Corporation Project), Series 1994,
6.75%, 7-1-2014 ....................... 1,550 1,623,625
Total ................................. 17,813,687
OKLAHOMA - 0.54%
Trustees of the Tulsa Municipal Airport
Trust, Revenue Bonds, Series 1985,
9.5%, 6-1-2020 ........................ 5,000 5,212,500
OREGON - 0.14%
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 1,391,250
PENNSYLVANIA - 1.36%
Certificates of Participation, Series
1993A, Commonwealth of Pennsylvania,
Fixed Rate Certificates,
5.4%, 7-1-2008 ........................ 5,000 4,768,750
Washington County Hospital Authority
(Commonwealth of Pennsylvania), Hospital
Revenue Bonds, Series of 1993 (The
Washington Hospital Project),
5.5%, 7-1-2012 ........................ 5,000 4,725,000
The Harrisburg Authority, Dauphin County,
Pennsylvania, Water Revenue Refunding
Bonds, Series A of 1994,
5.3%, 8-15-2016 ....................... 4,000 3,600,000
Total ................................. 13,093,750
RHODE ISLAND - 0.09%
Rhode Island Port Authority and Economic
Development Corporation, Airport Revenue
Bonds, 1993 Series A,
5.125%, 7-1-2009 ...................... 1,000 911,250
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
SOUTH CAROLINA - 1.58%
Calhoun County, South Carolina, Solid
Waste Disposal Facilities Revenue Bonds
(Eastman Kodak Company Project),
Series 1992,
6.75%, 5-1-2017 ....................... $10,895 $ 11,466,988
South Carolina State Education
Assistance Authority, Guaranteed Student
Loan Revenue and Refunding Bonds,
1993 Series,
5.55%, 9-1-2008 ....................... 4,000 3,755,000
Total ................................. 15,221,988
TENNESSEE - 1.66%
Tennessee Housing Development Agency:
Mortgage Finance Program Bonds:
1993 Series A,
5.85%, 7-1-2013 ....................... 4,820 4,663,350
1994 Series B,
6.45%, 7-1-2014 ....................... 3,015 2,992,387
Homeownership Program Bonds, Issue T,
7.375%, 7-1-2023 (G) .................. 4,665 4,892,419
Memphis-Shelby County Airport Authority,
Airport Revenue Refunding Bonds,
Series 1993B,
6.5%, 2-15-2009 ....................... 3,335 3,497,581
Total ................................. 16,045,737
TEXAS - 3.86%
Harris County, Texas, Toll Road Senior Lien
Revenue Refunding Bonds, Series 1994,
5.0%, 8-15-2016 ....................... 8,900 7,754,125
Alliance Airport Authority, Inc.,
Special Facilities Revenue Bonds,
Series 1991 (American Airlines, Inc.
Project),
7.0%, 12-1-2011 ....................... 6,850 6,918,500
Lubbock Health Facilities Development
Corporation, Hospital Revenue Bonds
(Methodist Hospital, Lubbock, Texas
Project),
6.75%, 12-1-2010 ...................... 5,000 5,393,750
Brazos River Authority (Texas), Variable
Rate Demand Pollution Control Revenue
Refunding Bonds (Monsanto Company Project),
Series 1994, Adjustable Rate Bond,
4.1%, 2-1-2004 ........................ 5,000 5,000,000
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
TEXAS (Continued)
Gulf Coast Waste Disposal Authority,
Solid Waste Disposal Revenue Refunding
Bonds, Series 1994 (The Quaker Oats
Company Project),
4.1%, 4-1-2013 ........................ $ 5,000 $ 5,000,000
City of San Antonio, Texas, Airport
Lease Special Project Revenue Bonds
(Hedrick Beechcraft, Inc. Project),
Series 1992,
4.25%, 12-1-2017 ...................... 3,900 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 1,783,200
Metro Health Facilities Development
Corporation (Sherman, Texas), Hospital
Revenue Bonds (The Wilson N. Jones
Memorial Hospital), Series 1993,
5.5%, 1-1-2012 ........................ 1,500 1,395,000
Total ................................. 37,144,575
UTAH - 0.10%
Utah Housing Finance Agency, Single Family
Mortgage Subordinate Bonds, 1993 Issue B,
5.7%, 7-1-2013 ........................ 1,000 936,250
VIRGINIA - 2.31%
Upper Occoquan Sewage Authority (Virginia),
Regional Sewerage System Revenue
Refunding Bonds, Series of 1993,
5.0%, 7-1-2015 ........................ 9,000 7,942,500
Virginia Education Loan Authority (A
Political Subdivision of the Commonwealth
of Virginia), Student Loan Program
Revenue Bonds, Series C Bonds,
5.75%, 9-1-2010 ....................... 6,660 6,468,525
Southeastern Public Service Authority of
Virginia:
Senior Revenue Bonds, Series 1993 (Regional
Solid Waste System):
5.95%, 7-1-2009 ....................... 1,500 1,434,375
6.0%, 7-1-2013 ........................ 1,000 958,750
Senior Revenue Refunding Bonds,
Series 1993A (Regional Solid Waste System),
5.125%, 7-1-2013....................... 1,000 902,500
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
VIRGINIA (Continued)
Virginia Housing Development Authority,
Commonwealth Mortgage Bonds, 1992 Series
C, Subseries C-2,
5.6%, 1-1-2015 ........................ $ 2,955 $ 2,766,619
City of Chesapeake, Virginia, Water
and Sewer System Revenue Refunding
Bonds, Series of 1994,
5.1%, 5-1-2014 ........................ 2,000 1,770,000
Total ................................. 22,243,269
WASHINGTON - 6.86%
Washington Public Power Supply System:
Nuclear Project No. 3, Refunding Revenue
Bonds, Series 1989B,
7.125%, 7-1-2016 ...................... 20,750 22,461,875
Nuclear Project No. 3, Refunding Revenue
Bonds, Series 1993C,
5.375%, 7-1-2015 ...................... 19,000 16,767,500
Nuclear Project No. 1, Refunding Revenue
Bonds, Series 1989B,
7.125%, 7-1-2016 ...................... 8,200 8,876,500
Public Utility District No. 1 of
Snohomish County, Washington, Generation
System Revenue Bonds, Series 1993B,
5.7%, 1-1-2014 ........................ 6,500 6,045,000
State of Washington, Various Purpose General
Obligation Bonds, Series 1990A,
6.75%, 2-1-2015 ....................... 4,995 5,457,037
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 2,694,487
Series 1993 (Highline Community
Hospital, Seattle),
5.5%, 8-15-2014 ....................... 1,500 1,374,375
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 2,404,687
Total ................................. 66,081,461
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL BOND FUND, INC.
MARCH 31, 1995
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
WYOMING - 0.21%
Pollution Control Revenue Refunding
Bonds (PacifiCorp Projects), Lincoln
County, Wyoming, Series 1993,
5.625%, 11-1-2021 ..................... $ 2,250 $ 2,033,437
TOTAL MUNICIPAL BONDS - 94.42% $909,529,656
(Cost: $882,260,630)
Number
of Contracts
OPTIONS - 0.07%
June 102 Put Options on
Treasury Bond Futures:
Expires 5-20-95 ....................... 1,000 $ 656,250
(Cost: $593,760)
TOTAL SHORT-TERM SECURITIES - 2.79% $ 26,873,250
(Cost: $26,873,250)
TOTAL INVESTMENT SECURITIES - 97.28% $937,059,156
(Cost: $909,727,640)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 2.72% 26,226,995
NET ASSETS - 100.00% $963,286,151
See Notes to Schedule of Investments on page 24.
<PAGE>
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%.
(G) This security serves as collateral for the following open futures contracts
at March 31, 1995:
Number of Expiration Market
Type Contracts Date Value
---------- --------- ---------- ------
Municipal
Bonds 250 5-20-95 $25,976,563
Municipal
Bonds 200 5-20-95 20,781,250
-----------
$46,757,813
===========
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, 1995
Assets
Investment securities-at value
(Notes 1 and 3) ............................... $937,059,156
Receivables:
Investment securities sold .................... 23,459,645
Interest ...................................... 16,479,750
Fund shares sold .............................. 547,924
Prepaid insurance premium ...................... 26,034
------------
Total assets ................................ 977,572,509
------------
Liabilities
Due to custodian ............................... 5,822,141
Payable for investment securities purchased .... 5,669,134
Payable for Fund shares redeemed ............... 2,187,899
Accrued service fee ............................ 183,377
Accrued transfer agency and dividend disbursing 52,981
Payable for variation margin ................... 18,750
Accrued accounting services fee ................ 7,083
Other .......................................... 344,993
------------
Total liabilities ........................... 14,286,358
------------
Total net assets ........................... $963,286,151
============
Net Assets
$1.00 par value capital stock, authorized --
400,000,000; shares outstanding -- 135,075,000
Capital stock ................................. $135,075,000
Additional paid-in capital .................... 803,657,747
Accumulated undistributed income:
Accumulated undistributed net investment
income ...................................... 1,111,517
Accumulated undistributed net realized loss on
investment transactions ..................... (3,972,442)
Net unrealized appreciation in value of
investments at end of period ................ 27,331,516
Net unrealized appreciation in value of
futures contracts at end of period .......... 82,813
------------
Net assets applicable to outstanding units
of capital ................................. $963,286,151
============
Net asset value per share (net assets divided by
shares outstanding) ............................ $7.13
=====
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended MARCH 31, 1995
Investment Income
Interest ......................................... $29,430,881
-----------
Expenses (Note 2):
Investment management fee ....................... 2,055,742
Service fee ..................................... 495,466
Transfer agency and dividend disbursing ......... 332,112
Accounting services fee ......................... 42,500
Custodian fees .................................. 26,171
Audit fees ...................................... 23,654
Legal fees ...................................... 13,048
Other ........................................... 99,797
-----------
Total expenses ................................ 3,088,490
-----------
Net investment income ........................ 26,342,391
-----------
Realized and Unrealized Gain (Loss) on Investments
Realized net loss on securities .................. (6,064,215)
Realized net gain on futures contracts closed .... 2,567,562
-----------
Net realized loss on investments ................ (3,496,653)
-----------
Unrealized appreciation in value of securities
during the period................................ 37,992,124
Unrealized appreciation in value of purchased
put options during the period ................... 62,490
Unrealized appreciation on futures contracts
open ............................................ 82,813
-----------
Net unrealized appreciation in value of
investments during the period ................. 38,137,427
-----------
Net gain on investments ....................... 34,640,774
-----------
Net increase in net assets resulting
from operations ............................ $60,983,165
===========
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,
1995 1994
------------ --------------
Increase (Decrease) in Net Assets
Operations:
Net investment income.............. $ 26,342,391 $ 52,401,793
Realized net gain (loss) on
investments ..................... (3,496,653) 14,118,689
Unrealized appreciation
(depreciation) .................. 38,137,427 (107,526,858)
------------ --------------
Net increase (decrease) in net
assets resulting from
operations ..................... 60,983,165 (41,006,376)
------------ --------------
Dividends to shareholders from:*
Net investment income ............. (26,286,573) (52,309,180)
Realized gains on securities
transactions .................... (5,125,035) (34,570,958)
------------ --------------
(31,411,608) (86,880,138)
------------ --------------
Capital share transactions:
Proceeds from sale of shares
(3,378,495 and 9,645,029
shares, respectively) .......... 23,005,457 71,488,819
Proceeds from reinvestment of
dividends and/or capital gains
distribution (3,852,831 and
10,027,100 shares, respectively) . 25,961,122 73,910,210
Payments for shares redeemed
(9,827,892 and 16,830,264
shares, respectively) ........... (66,204,313) (121,994,288)
------------ --------------
Net increase (decrease) in net
assets resulting from capital
share transactions ............. (17,237,734) 23,404,741
------------ --------------
Total increase (decrease) ...... 12,333,823 (104,481,773)
Net Assets
Beginning of period ................ 950,952,328 1,055,434,101
------------ --------------
End of period, including
undistributed net investment
income of $1,111,517 and
$1,055,699, respectively .......... $963,286,151 $ 950,952,328
============ ==============
*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 ------------------------------------
3/31/95 1994 1993 1992 1991 1990
------- ------ ------ ------ ------ ------
Net asset value,
beginning of period $6.91 $7.83 $7.40 $7.18 $6.66 $7.07
----- ----- ----- ----- ----- -----
Income from investment
operations:
Net investment
income........... .19 .38 .41 .43 .45 .47
Net realized and
unrealized gain
(loss) on
investments...... .26 (0.67) .65 .35 .52 (0.16)
----- ----- ----- ----- ----- -----
Total from investment
operations ........ .45 (0.29) 1.06 .78 .97 .31
----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment
income........... (0.19) (0.38) (0.40) (0.43) (0.45) (0.49)
Distribution from
capital gains.... (0.04) (0.25) (0.23) (0.13) (0.00) (0.23)
----- ----- ----- ----- ----- -----
Total distributions. (0.23) (0.63) (0.63) (0.56) (0.45) (0.72)
----- ----- ----- ----- ----- -----
Net asset value,
end of period ..... $7.13 $6.91 $7.83 $7.40 $7.18 $6.66
===== ===== ===== ===== ===== =====
Total return*....... 6.78% -3.91% 15.15% 11.41% 14.97% 4.46%
Net assets, end of
period (000
omitted) .........$963,286$950,952$1,055,434$890,004$769,122$648,546
Ratio of expenses to
average net assets 0.67%** 0.64% 0.56% 0.57% 0.57% 0.57%
Ratio of net investment
income to average
net assets ........ 5.73%** 5.17% 5.38% 5.92% 6.47% 6.82%
Portfolio
turnover rate ..... 64.25%**62.61% 94.51% 125.44%144.36% 181.25%
*Total return calculated without taking into account the sales load
deducted on an initial purchase.
**Annualized.
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 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 $11.5 billion of
combined net assets at March 31, 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
$481,048, out of which W&R paid sales commissions of $278,647 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 $16,827.
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 $290,615,887 while proceeds from maturities and
sales aggregated $366,019,994. Purchases of options aggregated $593,760.
Purchases of short-term securities aggregated $278,634,077 while proceeds from
maturities and sales aggregated $260,729,658. No U.S. Government securities
were bought or sold during the period ended March 31, 1995.
For Federal income tax purposes, cost of investments owned at March 31,
1995 was $910,240,367, resulting in net unrealized appreciation of $26,818,789,
of which $33,627,174 related to appreciated securities and $6,808,385 related
to depreciated securities.
NOTE 4 -- Federal Income Tax Matters
For Federal income tax purposes, the Fund realized capital gain net income
of $7,957,589 during the year ended September 30, 1994, which has been paid to
shareholders.
NOTE 5 -- Futures
The Fund may engage in buying and selling interest rate futures contracts,
but only Debt Futures and Municipal Bond Index Futures. Upon entering into a
futures contract, the Fund is required to deposit, in a segregated account, an
amount of cash or U.S. Treasury Bills equal to a varying specified percentage of
the contract amount. This amount is known as the initial margin. Subsequent
payments ("variation margins") are made or received by the Fund each day,
dependent on the daily fluctuations in the value of the underlying debt security
or index. These changes in the variation margins are recorded by the Fund as
unrealized gains or losses. Upon the closing of the contracts, the cumulative
net change in the variation margin is recorded as realized gain or loss.
NOTE 6 -- Options
Options purchased by the Fund are accounted for in the same manner as
marketable portfolio securities. The cost of portfolio securities acquired
through the exercise of call options is increased by the premium paid to
purchase the call. The proceeds from securities sold through the exercise of
put options are decreased by the premium paid to purchase the put.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
United Municipal Bond Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of United Municipal Bond Fund, Inc.
(the "Fund") at March 31, 1995, 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, 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
May 5, 1995
<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
NUR1008SA(3-95)
printed on recycled paper
