<PAGE>
UNITED
FUNDS, INC.
United Bond Fund
United Income Fund
United Accumulative Fund
United Science and Technology Fund
SEMIANNUAL
REPORT
--------------------------------------
For the six months ended June 30, 1994
This report is submitted for the general information of the shareholders of
United Funds, Inc. It is not authorized for distribution to prospective
investors unless accompanied with or preceded by the United Funds, Inc. current
prospectus.
<PAGE>
PRESIDENT'S LETTER
JUNE 30, 1994
- ---------------------------------------------------------------------------
Dear Shareholder:
This report covers the investment performance of your Fund for the six
months ended June 30, 1994.
During the past six months, bond and equity markets have been affected by
increases in interest rates and the fear of higher inflation. We expect these
markets will continue to react to action, if any, taken by the Federal Reserve
to prevent increases in the inflation rate. Although markets have declined
since the beginning of 1994, historically such intermediate and short-term
fluctuations have had limited impact on achieving investors' long-term financial
goals.
Over time, interest rates follow inflation. Once it has been determined
that the rate of economic growth is manageable, the Federal Reserve Board's
actions will be seen as beneficial to combating inflation, which eventually
should lead to interest rates that are more favorable to the markets.
Based on our 57 years in the financial services industry, we believe that
our commitment to professional portfolio management is the key value-added
service we provide: we select and continuously supervise the Fund's investments
using the most up-to-date information and research available to ensure the
investments meet the Fund's stated objectives.
And, we believe our "hands-on" approach to investment management can help
reward the patient investor over the long term. We never forget that we manage
your money.
The following is an in-depth review of your Fund's recent performance. We
believe the information included in this review continues to reflect our aim of
achieving the goals and purposes of the Fund. Thank you for your continued
confidence in our products and services.
Respectfully,
Keith A. Tucker
President
<PAGE>
SHAREHOLDER SUMMARY
- ----------------------------------------------------------------------
UNITED BOND FUND
PORTFOLIO STRATEGY:
Corporate and government OBJECTIVE: Reasonable return with emphasis on
bonds the preservation of principal.
Maximum 10% Non-Debt
Securities STRATEGY: Invests in bonds issued by companies in
a variety of industries and in
government securities.
FOUNDED: 1964
DIVIDENDS: PAID MONTHLY
<PAGE>
PERFORMANCE SUMMARY
PER SHARE DATA
For the Six Months Ended June 30, 1994
- --------------------------------------
DIVIDENDS PAID $ 0.19
======
NET ASSET VALUE ON
6/30/94 $ 5.83
12/31/93 6.39
------
CHANGE PER SHARE $(0.56)
======
Past performance is not necessarily an indication of future results.
TOTAL RETURN HISTORY
Average Annual Total Return
---------------------------
With Without
Period Sales Load* Sales Load**
- ------ ----------- ------------
1-year period ended 6-30-94 -8.18% -2.58%
5-year period ended 6-30-94 6.42% 7.69%
10-year period ended 6-30-94 11.07% 11.73%
*Performance data quoted represents past performance and is based on deduction
of 5.75% 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 June 30, 1994, United Bond Fund had net assets totaling $558,137,189
invested in a diversified portfolio of:
94.24% Bonds
5.76% Cash and Cash Equivalents
As a shareholder of United Bond Fund, for every $100 you had invested on June
30, 1994, your Fund owned:
Bonds:
Corporate $65.35
U.S. Government 23.52
Other Government 3.45
Municipal Bonds 1.92
Cash and Cash Equivalents 5.76
Not all holdings will be represented in the portfolio at all times.
<PAGE>
THE INVESTMENTS OF UNITED BOND FUND
JUNE 30, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES
Aerospace - 1.92%
McDonnell Douglas Corporation:
9.25%, 4-1-2002 ....................... $ 5,000 $ 5,409,650
9.75%, 4-1-2012 ....................... 5,000 5,289,600
Total ................................. 10,699,250
Airlines - 1.67%
Federal Express Corporation,
7.89%, 9-23-2008 ...................... 10,000 9,315,100
Automotive - 3.21%
General Motors Corporation,
8.8%, 3-1-2021 ........................ 10,000 10,676,100
Toyota Motor Credit Corp.,
6.695%, 8-5-96 ........................ 8,000 7,260,000
Total ................................. 17,936,100
Banks and Savings and Loans - 11.54%
Banco Nacional de Comercio Exterior,
S.N.C.,
7.5%, 7-1-2000 ........................ 5,000 4,450,000
Bayerische Landesbank Girozentale,
4.92%, 3-28-97 ........................ 5,000 4,562,500
Central Fidelity Bank,
8.15%, 11-15-2002 ..................... 10,000 10,062,700
Chevy Chase Savings Bank, F.S.B.,
9.25%, 12-1-2005 ...................... 2,000 1,855,000
Citicorp,
7.75%, 8-15-2006 ...................... 5,000 4,844,750
Kansallis-Osake-Pankki:
6.125%, 5-15-98 ....................... 4,000 3,803,080
9.75%, 12-15-98 ....................... 1,000 1,075,700
National Westminster Bancorp Inc.,
9.375%, 11-15-2003 .................... 5,000 5,433,850
RBSG Capital Corp.,
10.125%, 3-1-2004 ..................... 5,000 5,640,300
Riggs National Corporation,
8.5%, 2-1-2006 ....................... 3,750 3,487,500
Shawmut National Corporation,
7.2%, 4-15-2003 ....................... 10,000 9,360,100
Skandia Enskilda Banken,
6.125%, 4-5-99 ........................ 5,000 4,637,500
Wells Fargo & Company,
8.75%, 5-1-2002 ....................... 5,000 5,213,100
Total ................................. 64,426,080
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED BOND FUND
JUNE 30, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Building - 5.36%
Canadian Pacific Forest Products Ltd.,
9.25%, 6-15-2002 ..................... $ 3,000 $ 2,787,960
Cemex, S.A.,
8.875%, 6-10-98 ....................... 1,500 1,483,125
Centex Corporation,
8.75%, 3-1-2007 ....................... 1,000 982,670
Del Webb Corporation:
10.875%, 3-31-2000 .................... 4,000 3,920,000
9.0%, 2-15-2006 ....................... 1,000 865,000
Doman Industries Limited,
8.75%, 3-15-2004 ...................... 2,000 1,790,000
Georgia-Pacific Corporation,
9.5%, 5-15-2022 ....................... 10,000 10,231,500
Noranda Forest Inc.,
7.5%, 7-15-2003 ....................... 3,000 2,788,560
Owens-Corning Fiberglas Corporation,
8.875%, 6-1-2002 ...................... 5,000 5,074,750
Total ................................. 29,923,565
Canadian Oil - 1.79%
NOVA Corporation of Alberta,
8.5%, 12-15-2012 ...................... 10,000 9,998,800
Chemicals Major - 2.69%
Dow Capital Corporation,
9.0%, 5-15-2010 ....................... 9,550 10,133,983
Grace (W.R.) & Co.,
7.4%, 2-1-2000 ........................ 5,000 4,887,500
Total ................................. 15,021,483
Chemicals Specialty and Miscellaneous
Technology - 0.89%
Eastman Kodak Company,
7.25%, 7-1-99 ......................... 5,010 4,944,920
Domestic Oil - 2.88%
Occidental Petroleum Corporation,
10.125%, 9-15-2009 .................... 5,000 5,409,500
Seagull Energy Corporation,
7.875%, 8-1-2003 ...................... 4,000 3,720,000
Union Texas Petroleum Holdings, Inc.,
8.25%, 11-15-99 ....................... 7,000 6,952,820
Total ................................. 16,082,320
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED BOND FUND
JUNE 30, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Electrical Equipment - 3.69%
Black & Decker Corporation (The),
6.625%, 11-15-2000 .................... $10,000 $ 9,108,600
General Electric Capital Corporation:
8.3%, 9-20-2009 ....................... 10,000 10,457,600
8.65%, 5-1-2018 ....................... 1,000 1,035,820
Total ................................. 20,602,020
Financial - 10.26%
Chrysler Financial Corporation,
12.75%, 11-1-2019 ..................... 9,000 10,978,290
Countrywide Mortgage Backed Securities,
Inc., Series 1994-G A5,
6.5%, 4-25-2024 ....................... 10,000 9,525,000
Equicon Loan Trust,
7.30%, 2-18-2013 ...................... 4,571 4,103,470
General Motors Acceptance Corporation,
8.875%, 6-1-2010 ...................... 10,000 10,752,700
Greyhound Financial Corporation,
8.79%, 11-15-2001 ..................... 3,000 3,142,680
Prudential Home Mortgage Securities
Company, Inc. (The),
6.0%, 1-25-2009 ....................... 10,000 8,696,800
Residential Funding Mortgage
Securities I, Inc.,
8.0%, 8-25-2020 ....................... 10,000 10,043,700
Total ................................. 57,242,640
Food and Related - 1.79%
Archer Daniels-Midland Company,
8.875%, 4-15-2011 ..................... 5,000 5,361,800
ConAgra, Inc.,
7.375%, 2-1-2005 ...................... 5,000 4,653,600
Total ................................. 10,015,400
Insurance - 0.49%
Reliance Group Holdings, Inc.,
9.0%, 11-15-2000 ...................... 3,000 2,730,000
International Oil - 1.12%
LASMO (USA) INC.,
7.125%, 6-1-2003 ...................... 5,000 4,565,750
YPF Sociedad Anomia,
8.0%, 2-15-2004........................ 2,000 1,690,000
Total.................................. 6,255,750
Leisure Time - 3.40%
Marriott International, Inc.,
6.75%, 12-15-2003 ..................... 3,000 2,683,260
Tele-Communications, Inc.:
6.58%, 2-15-2005 ..................... 3,000 2,804,460
9.8%, 2-1-2012 ....................... 5,000 5,240,100
<PAGE>
THE INVESTMENTS OF UNITED BOND FUND
JUNE 30, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Leisure Time (Continued)
Time Warner Incorporated,
7.95%, 2-1-2000 ....................... $ 5,000 $ 4,873,850
Turner Broadcasting,
8.375%, 7-1-2013 ...................... 4,000 3,384,040
Total ................................. 18,985,710
Machinery - 0.39%
Caterpillar, Inc.,
9.375%, 8-15-2011 ..................... 2,000 2,183,180
Metals and Mining - 1.28%
Noranda Inc.,
8.625%, 7-15-2002 ..................... 7,000 7,116,900
Multi-Industry - 0.83%
Mark IV Industries, Inc.,
8.75%, 4-1-2003 ....................... 5,000 4,625,000
Public Utilities - Electric - 0.81%
PVNGS Funding Corp., Inc.,
8.0%, 12-30-2015 ...................... 5,000 4,506,250
Public Utilities - Pipelines - 3.61%
Arkla, Inc.,
8.875%, 7-15-99 ....................... 10,000 10,050,000
Tenneco Inc.,
8.0%, 11-15-99 ........................ 10,000 10,082,500
Total ................................. 20,132,500
Publishing and Advertising - 1.73%
News America Holdings Incorporated:
9.125%, 10-15-99 ...................... 5,000 5,172,650
8.25%, 8-10-2018 ...................... 5,000 4,489,750
Total ................................. 9,662,400
Railroads - 1.93%
Kansas City Southern Railway (The),
6.625%, 3-1-2005 ...................... 5,000 4,454,600
Penn Central Corporation (The),
10.625%, 4-15-2000 .................... 5,750 6,298,895
Total ................................. 10,753,495
Retailing - 1.07%
Best Buy Co., Inc.,
8.625%, 10-1-2000 ..................... 2,500 2,375,000
Penn Traffic Company,
8.625%, 12-15-2003 .................... 4,000 3,620,000
Total ................................. 5,995,000
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED BOND FUND
JUNE 30, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Telecommunications - 0.18%
Sprint Corporation,
8.125%, 7-15-2002 ..................... $ 1,000 $ 1,004,770
Tobacco - 0.82%
RJR Nabisco, Inc.,
6.80%, 9-1-2001 ....................... 5,000 4,597,800
TOTAL CORPORATE DEBT SECURITIES - 65.35% $364,756,433
(Cost: $390,709,400)
MUNICIPAL BONDS
California - 0.65%
County of San Diego, Taxable Pension
Obligation Bonds, Series A,
5.63%, 8-15-99 ....................... 3,000 2,775,000
Department of Water and Power of the City
of Los Angeles, Electric Plant Revenue
Bonds, Second Issue of 1993,
5.125%, 10-15-2014 .................... 1,000 852,500
Total ................................. 3,627,500
Florida - 0.32%
State of Florida, Full Faith and Credit
State Board of Education, Public
Education Capital Outlay Refunding
Bonds, 1993 Series A,
5.1%, 6-1-2009 ........................ 2,000 1,817,500
New York - 0.15%
County of Nassau, New York, General
Obligation Bonds (Federally Taxable),
5.75%, 10-15-2005 ..................... 1,000 827,500
South Carolina - 0.34%
Oconee County, South Carolina, Pollution
Control Facilities Revenue Refunding
Bonds, Series 1993 (Duke Power Company
Project),
5.8%, 4-1-2014 ........................ 2,000 1,882,500
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED BOND FUND
JUNE 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
Washington - 0.46%
Seattle, Washington, Municipal Light
and Power Refunding Revenue Bonds,
5.375%, 11-1-2018 ..................... $ 1,000 $ 880,000
Washington Public Power Supply System,
Nuclear Project No. 1 Refunding
Revenue Bonds, Series 1993C,
5.375%, 7-1-2015 ...................... 2,000 1,700,000
Total.................................. 2,580,000
TOTAL MUNICIPAL BONDS - 1.92% $ 10,735,000
(Cost: $11,868,929)
OTHER GOVERNMENT SECURITIES
Argentina - 0.75%
Republic of Argentina,
8.375%, 12-20-2003 .................... 5,000 4,168,750
Italy - 0.94%
Republic of Italy,
8.75%, 2-8-2001 ....................... 5,000 5,267,150
Mexico - 0.81%
United Mexican States,
8.50%, 9-15-2002 ...................... 5,000 4,525,000
New Zealand - 0.95%
New Zealand,
8.75%, 12-15-2006 ..................... 5,000 5,296,800
TOTAL OTHER GOVERNMENT SECURITIES - 3.45% $ 19,257,700
(Cost: $21,114,475)
UNITED STATES GOVERNMENT SECURITIES
Federal Home Loan Mortgage Corporation:
7.5%, 11-15-2017 ...................... 8,000 7,960,000
7.5%, 4-15-2019 ....................... 10,569 9,782,677
Federal National Mortgage Association:
7.0%, 7-25-2006 ....................... 10,000 9,653,100
7.5%, 12-25-2006 ...................... 5,000 4,751,550
6.5%, 5-25-2018 ....................... 10,000 9,409,300
8.0%, 5-25-2019 ....................... 7,323 7,455,434
7.0%, 8-25-2021 ....................... 10,000 9,378,100
Government National Mortgage Association,
10.5%, 3-15-2029 ...................... 1,423 1,545,915
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED BOND FUND
JUNE 30, 1994
Principal
Amount in
Thousands Value
UNITED STATES GOVERNMENT SECURITIES (Continued)
United States Treasury:
0.0%, 2-15-95 ......................... $ 5,000 $ 4,844,650
0.0%, 5-15-95 ......................... 10,000 9,548,300
5.75%, 10-31-97 ....................... 10,000 9,734,400
0.0%, 8-15-98 ......................... 15,000 11,334,750
7.125%, 10-15-98 ...................... 25,000 25,242,250
6.375%, 8-15-2002 ..................... 10,000 9,443,700
9.25%, 2-15-2016 ...................... 1,000 1,154,690
TOTAL UNITED STATES GOVERNMENT
SECURITIES - 23.52% $131,238,816
(Cost: $132,554,686)
TOTAL SHORT-TERM SECURITIES - 5.37% $ 29,947,964
(Cost: $29,947,964)
TOTAL INVESTMENT SECURITIES - 99.61% $555,935,913
(Cost: $586,195,454)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.39% 2,201,276
NET ASSETS - 100.00% $558,137,189
See Notes to Schedules of Investments on page 37.
<PAGE>
SHAREHOLDER SUMMARY
- -----------------------------------------------------------------
UNITED INCOME FUND
PORTFOLIO STRATEGY:
Investment quality OBJECTIVE: Current income relative
dividend-paying to changing market
common stocks conditions.
Cash Reserves STRATEGY: Invests principally in common stocks of
large, well-known companies.
The use of cash reserves (often invested
in money market securities) for
defensive purposes is a strategy that
may be utilized by the Income Fund from
time to time.
Moving into cash reserve positions at
times thought to be near a major stock
market peak allows the Fund the
opportunity to capture profits and
attempts to cushion the impact of market
declines. The added flexibility
provided by our CASH RESERVES STRATEGY
has from time to time been an important
element in our past success and, when
deemed appropriate, may be used in the
management of the portfolio in the
future.
FOUNDED: 1940
DIVIDENDS: PAID QUARTERLY
<PAGE>
PERFORMANCE SUMMARY
PER SHARE DATA
For the Six Months Ended June 30, 1994
- --------------------------------------
DIVIDENDS PAID $ 0.17
=======
NET ASSET VALUE ON
6/30/94 $ 24.01
12/31/93 24.77
-------
CHANGE PER SHARE $( 0.76)
=======
Past performance is not necessarily an indication of future results.
TOTAL RETURN HISTORY
Average Annual Total Return
---------------------------
With Without
Period Sales Load* Sales Load**
- ------ ----------- ------------
1-year period ended 6-30-94 -0.38% 5.69%
5-year period ended 6-30-94 9.87% 11.18%
10-year period ended 6-30-94 16.34% 17.03%
*Performance data quoted represents past performance and is based on deduction
of 5.75% 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 June 30, 1994, United Income Fund had net assets totaling $3,085,963,955
invested in a diversified portfolio of:
90.12% Common Stocks and Rights
5.46% Cash and Cash Equivalents
3.76% U.S. Government Securities
0.66% Corporate Debt Securities
As a shareholder of United Income Fund, for every $100 you had invested on June
30, 1994, your Fund owned:
Basic Industries Stocks $39.92
Consumer Stocks 21.73
Technological Stocks 16.90
Financial Stocks 11.57
Cash and Cash Equivalents 5.46
U.S. Government Securities 3.76
Corporate Debt Securities 0.66
Not all holdings will be represented in the portfolio at all times.
<PAGE>
- ---------------------------------------------------------------------------
These STOCK CATEGORIES are provided as a reference only. Not all categories or
subcategories will be represented in a portfolio at all times. Refer to the
following pages for a more detailed portfolio listing.
BASIC INDUSTRIES
Airlines
Automotive
Building
Chemicals Major
Electrical Equipment
Engineering and Construction
Machinery
Manufacturers
Metals and Mining
Multi-Industry
Paper
Precious Metals
Railroad Equipment
Railroads
Shipping
Steel
Tire and Rubber
Trucking
CONSUMER
Beverages
Consumer Electronics and Appliances
Food and Related
Hospital Management
Household Products
Leisure Time
Packaging and Containers
Publishing and Advertising
Retailing
Services, Consumer and Business
Textiles and Apparel
Tobacco
ENERGY AND ENERGY-RELATED
Canadian Oil
Coal
Domestic Oil
International Oil
Oil Services
Propane
FINANCIAL
Banks and Savings and Loans
Financial
Insurance
PUBLIC UTILITIES
Electric
Gas
Pipelines
TECHNOLOGICAL
Aerospace
Biotechnology and Medical Services
Chemicals Specialty and Miscellaneous Technology
Computers and Office Equipment
Drugs and Hospital Supply
Electronics
Telecommunications
<PAGE>
THE INVESTMENTS OF UNITED INCOME FUND
JUNE 30, 1994
Shares Value
COMMON STOCKS AND RIGHTS
Aerospace - 0.53%
Boeing Company (The) ................... 350,000 $ 16,187,500
Airlines - 2.17%
AMR Corporation* ....................... 400,000 23,750,000
Southwest Airlines Co. ................. 1,650,000 43,106,250
Total ................................. 66,856,250
Automotive - 7.51%
Chrysler Corporation ................... 1,100,000 51,837,500
Daimler-Benz AG (A) .................... 30,000 13,706,820
Daimler-Benz AG, ADS ................... 140,000 6,335,000
Daimler-Benz AG, ADS, Rights* .......... 140,000 61,180
Dana Corporation ....................... 760,000 21,660,000
Eaton Corporation ...................... 500,000 26,000,000
Ford Motor Company ..................... 950,000 56,050,000
General Motors Corporation ............. 815,000 40,953,750
Magna Group, Inc., Class A ............. 376,500 15,060,000
Total ................................. 231,664,250
Banks and Savings and Loans - 8.73%
Banc One Corporation ................... 495,000 16,953,750
BankAmerica Corporation ................ 502,500 22,989,375
Chase Manhattan Corporation ............ 850,000 32,512,500
Chemical Banking Corporation ........... 625,000 24,062,500
Citicorp ............................... 1,000,000 39,875,000
Deutsche Bank Aktiengesellschaft (A) ... 44,000 18,966,464
First Bank Systems, Inc. ............... 610,500 22,283,250
First Interstate Bancorporation ........ 300,000 23,100,000
Midlantic Corporation .................. 600,000 17,437,200
NationsBank Corporation ................ 389,000 19,984,875
PNC Bank Corp. ......................... 500,000 14,437,500
Skandinaviska Enskilda Banken (A)* ..... 2,800,000 16,665,600
Total ................................. 269,268,014
Beverages - 1.67%
PepsiCo, Inc. .......................... 1,300,000 39,812,500
Whitman Corporation .................... 765,000 11,857,500
Total ................................. 51,670,000
Biotechnology and Medical Services - 0.52%
Medtronic, Inc. ........................ 200,000 16,025,000
Building - 2.86%
Armstrong World Industries, Inc. ....... 696,100 32,455,663
Georgia-Pacific Corporation ............ 200,000 11,975,000
Louisiana-Pacific Corporation .......... 200,000 6,100,000
Stanley Works (The) .................... 150,000 6,037,500
Temple-Inland Inc. ..................... 350,000 16,668,750
Weyerhaeuser Company ................... 375,000 15,000,000
Total ................................. 88,236,913
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED INCOME FUND
JUNE 30, 1994
Shares Value
COMMON STOCKS AND RIGHTS (Continued)
Chemicals Major - 5.25%
Air Products & Chemicals, Inc. ......... 878,300 $ 37,217,963
du Pont (E.I.) de Nemours and Company .. 600,000 35,025,000
PPG Industries, Inc. ................... 1,250,000 46,875,000
Praxair, Inc. .......................... 1,000,000 19,500,000
Union Carbide Corporation .............. 875,000 23,406,250
Total ................................. 162,024,213
Chemicals Specialty and Miscellaneous Technology - 3.52%
Betz Laboratories, Inc. ................ 280,000 11,865,000
Minnesota Mining and Manufacturing
Company ............................... 500,000 24,750,000
Polaroid Corporation ................... 1,400,000 44,625,000
Xerox Corporation ...................... 280,000 27,370,000
Total ................................. 108,610,000
Computer Services and Software - 1.13%
General Motors Corporation, Class E .... 1,000,000 34,875,000
Consumer Electronics and Appliances - 1.65%
Maytag Corporation ..................... 1,200,000 22,200,000
Rival Company (The) .................... 221,200 4,575,964
Whirlpool Corporation .................. 460,300 24,165,750
Total ................................. 50,941,714
Drugs and Hospital Supply - 0.81%
Sandoz Ltd. (A) ........................ 47,960 24,924,093
Electrical Equipment - 2.61%
Emerson Electric Co. ................... 429,700 24,439,188
General Electric Company ............... 1,200,000 55,950,000
Total ................................. 80,389,188
Electronics - 6.34%
AMP Incorporated ....................... 550,000 38,087,500
Applied Materials, Inc.* ............... 865,000 36,924,255
Intel Corporation ...................... 765,000 44,848,125
Motorola, Inc. ......................... 1,700,000 75,650,000
Total ................................. 195,509,880
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED INCOME FUND
JUNE 30, 1994
Shares Value
COMMON STOCKS AND RIGHTS (Continued)
Engineering and Construction - 1.84%
BBC Brown Boveri Baen, Series A (A) .... 25,000 $ 22,009,725
Fluor Corporation ...................... 400,000 20,350,000
Foster Wheeler Corporation ............. 400,000 14,550,000
Total ................................. 56,909,725
Financial - 2.84%
Federal Home Loan Mortgage Corporation . 500,000 30,250,000
Federal National Mortgage Association .. 295,200 24,649,200
Grupo Financiero Banamex Accival,
S.A. de C.V., B, CPO Shares (A) ....... 1,000,000 5,600,000
Grupo Financiero Banamex Accival,
S.A. de C.V., C (A) ................... 1,000,000 6,322,000
Grupo Financiero Banamex Accival,
S.A. de C.V., L (A) ................... 50,000 309,500
Household International, Inc. .......... 600,000 20,400,000
Total ................................. 87,530,700
Food and Related - 1.46%
CPC International Inc. ................. 500,000 24,125,000
Nestle S.A. (A) ........................ 8,000 6,725,152
Pet Incorporated ....................... 765,000 14,248,125
Total ................................. 45,098,277
Household Products - 3.64%
Avon Products, Inc. .................... 280,000 16,485,000
Colgate-Palmolive Company .............. 600,000 31,200,000
Gillette Company (The) ................. 500,000 32,562,500
Procter & Gamble Company (The) ......... 600,000 32,025,000
Total.................................. 112,272,500
Leisure Time - 2.25%
Walt Disney Company (The) .............. 700,000 29,137,500
McDonald's Corporation ................. 1,400,000 40,425,000
Total ................................. 69,562,500
Machinery - 7.07%
Caterpillar Inc. ....................... 800,000 80,000,000
Clark Equipment Company* ............... 500,000 29,875,000
Deere & Company ........................ 685,000 46,323,125
Ingersoll-Rand Company ................. 400,000 14,050,000
Mannesmann AG (A) ...................... 40,000 10,184,000
Parker Hannifin Corporation ............ 400,000 17,050,000
Trinova Corporation .................... 600,000 20,775,000
Total ................................. 218,257,125
Metals and Mining - 0.52%
Phelps Dodge Corporation ............... 280,000 15,960,000
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED INCOME FUND
JUNE 30, 1994
Shares Value
COMMON STOCKS AND RIGHTS (Continued)
Multi-Industry - 1.72%
ITT Corporation ........................ 650,204 $ 53,072,902
Packaging and Containers - 0.68%
Pilkington PLC (A) ..................... 8,164,516 21,039,958
Paper - 2.02%
International Paper Company ............ 600,000 39,750,000
Union Camp Corporation ................. 500,000 22,687,500
Total ................................. 62,437,500
Railroads - 3.74%
CSX Corporation ........................ 350,000 26,425,000
Conrail Inc. ........................... 600,000 32,850,000
Norfolk Southern Corporation ........... 300,000 18,900,000
Southern Pacific Rail Corporation* ..... 460,000 9,027,500
Union Pacific Corporation .............. 500,000 28,312,500
Total ................................. 115,515,000
Retailing - 9.62%
Cifra, S.A. de C.V., C (A) ............. 7,000,000 16,296,000
Circuit City Stores, Inc. .............. 1,600,000 32,800,000
Dayton Hudson Corporation .............. 316,600 25,644,600
Dillard Department Stores, Inc.,
Class A ............................... 950,000 29,331,250
Gap, Inc. (The) ........................ 700,000 29,925,000
Home Depot, Inc. (The) ................. 765,000 32,225,625
May Department Stores Company (The) .... 1,000,000 39,250,000
Penney (J.C.) Company, Inc. ............ 676,000 36,673,000
Sears, Roebuck and Co. ................. 200,000 9,600,000
Tommy Hilfiger Corporation* ............ 280,000 11,130,000
Toys "R" Us Inc.* ...................... 300,000 9,825,000
Wal-Mart Stores, Inc. .................. 1,000,000 24,250,000
Total ................................. 296,950,475
Services, Consumer and Business - 0.76%
Block (H&R), Inc. ...................... 600,000 23,550,000
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED INCOME FUND
JUNE 30, 1994
Shares Value
COMMON STOCKS AND RIGHTS (Continued)
Steel - 0.84%
Avesta Sheffield AB (A)* ............... 3,831,000 $ 26,004,828
Telecommunications - 4.05%
AT&T Corporation ....................... 500,000 27,187,500
General Instrument Corporation* ........ 500,000 28,500,000
MCI Communications Corporation ......... 1,000,000 22,187,000
Telefonaktiebolaget LM Ericsson,
Class B, ADR........................... 500,000 24,781,000
Telefonos de Mexico S.A. de C.V., ADR .. 400,000 22,350,000
Total ................................. 125,005,500
Tire and Rubber - 0.96%
Goodyear Tire & Rubber Company (The) ... 825,000 29,700,000
Trucking - 0.81%
Ryder System, Inc. ..................... 1,000,000 25,125,000
TOTAL COMMON STOCKS AND RIGHTS - 90.12% $2,781,174,005
(Cost: $1,866,103,557)
Principal
Amount in
Thousands
CORPORATE DEBT SECURITIES
Banks and Savings and Loans - 0.32%
Morgan Guaranty Trust Company of New York,
7.375%, 2-1-2002 ...................... $10,250 10,035,365
Electrical Equipment - 0.34%
General Electric Capital Corporation,
8.3%, 9-20-2009 ....................... 10,000 10,457,600
TOTAL CORPORATE DEBT SECURITIES - 0.66% $ 20,492,965
(Cost: $19,824,850)
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED INCOME FUND
JUNE 30, 1994
Principal
Amount in
Thousands Value
UNITED STATES GOVERNMENT SECURITIES
United States Treasury:
8.5%, 5-15-97 ......................... $16,000 $ 16,827,520
8.75%, 10-15-97 ....................... 20,000 21,228,200
5.75%, 8-15-2003 ...................... 50,000 44,750,000
10.375%, 11-15-2012 ................... 8,500 10,403,235
9.0%, 11-15-2018 ...................... 20,000 22,678,200
TOTAL UNITED STATES GOVERNMENT
SECURITIES - 3.76% $ 115,887,155
(Cost: $113,981,383)
TOTAL SHORT-TERM SECURITIES - 5.62% $ 173,271,332
(Cost: $173,271,332)
TOTAL INVESTMENT SECURITIES - 100.16% $3,090,825,457
(Cost: $2,173,181,122)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.16%) (4,861,502)
NET ASSETS - 100.00% $3,085,963,955
See Notes to Schedules of Investments on page 37.
<PAGE>
SHAREHOLDER SUMMARY
- -----------------------------------------------------------------
UNITED ACCUMULATIVE FUND
PORTFOLIO STRATEGY:
Appreciation-oriented OBJECTIVE: Long-term appreciation
common stock of capital with a secondary
objective of current income.
Cash Reserves
STRATEGY: Invests mainly in common stocks of
large, well-known companies representing
the major sectors of our economy.
The use of cash reserves (often invested
in money market securities) for
defensive purposes is a strategy that
may be utilized by the Accumulative Fund
from time to time.
Moving into cash reserve positions at
times thought to be near a major stock
market peak allows the Fund the
opportunity to capture profits and
attempts to cushion the impact of market
declines. The added flexibility
provided by our CASH RESERVES STRATEGY
has from time to time been an important
element in our past success and, when
deemed appropriate, may be used in the
management of the portfolio in the
future.
FOUNDED: 1940
DIVIDENDS: PAID SEMIANNUALLY
<PAGE>
PERFORMANCE SUMMARY
PER SHARE DATA
For the Six Months Ended June 30, 1994
- --------------------------------------
DIVIDEND PAID $ 0.04
======
NET ASSET VALUE ON
6/30/94 $ 6.98
12/31/93 7.19
------
CHANGE PER SHARE $(0.21)
======
Past performance is not necessarily an indication of future results.
TOTAL RETURN HISTORY
Average Annual Total Return
---------------------------
With Without
Period Sales Load* Sales Load**
- ------ ----------- ------------
1-year period ended 6-30-94 -4.02% 1.84%
5-year period ended 6-30-94 6.96% 8.23%
10-year period ended 6-30-94 12.78% 13.45%
*Performance data quoted represents past performance and is based on deduction
of 5.75% 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 June 30, 1994, United Accumulative Fund had net assets totaling $978,150,217
invested in a diversified portfolio of:
80.31% Common Stocks
19.69% Cash and Cash Equivalents
As a shareholder of United Accumulative Fund, for every $100 you had invested on
June 30, 1994, your Fund owned:
Consumer Stocks $23.22
Cash and Cash Equivalents 19.69
Financial Stocks 18.66
Technological Stocks 16.04
Basic Industries Stocks 11.01
Energy and Energy-Related Stocks 8.92
Public Utilities Stocks 2.46
Not all holdings will be represented in the portfolio at all times.
<PAGE>
- ---------------------------------------------------------------------------
These STOCK CATEGORIES are provided as a reference only. Not all categories or
subcategories will be represented in a portfolio at all times. Refer to the
following pages for a more detailed portfolio listing.
BASIC INDUSTRIES
Airlines
Automotive
Building
Chemicals Major
Electrical Equipment
Engineering and Construction
Machinery
Manufacturers
Metals and Mining
Multi-Industry
Paper
Precious Metals
Railroad Equipment
Railroads
Shipping
Steel
Tire and Rubber
Trucking
CONSUMER
Beverages
Consumer Electronics and Appliances
Food and Related
Hospital Management
Household Products
Leisure Time
Packaging and Containers
Publishing and Advertising
Retailing
Services, Consumer and Business
Textiles and Apparel
Tobacco
ENERGY AND ENERGY-RELATED
Canadian Oil
Coal
Domestic Oil
International Oil
Oil Services
Propane
FINANCIAL
Banks and Savings and Loans
Financial
Insurance
PUBLIC UTILITIES
Electric
Gas
Pipelines
TECHNOLOGICAL
Aerospace
Biotechnology and Medical Services
Chemicals Specialty and Miscellaneous Technology
Computers and Office Equipment
Drugs and Hospital Supply
Electronics
Telecommunications
<PAGE>
THE INVESTMENTS OF UNITED ACCUMULATIVE FUND
JUNE 30, 1994
Shares Value
COMMON STOCKS
Automotive - 1.30%
General Motors Corporation ............. 175,000 $ 8,793,750
MascoTech, Inc. ........................ 300,000 3,975,000
Total ................................. 12,768,750
Banks and Savings and Loans - 9.46%
Citicorp ............................... 400,000 15,950,000
City National Corporation* ............. 250,000 2,500,000
Crestar Financial Corporation .......... 250,000 11,375,000
First Chicago Corporation .............. 200,000 9,625,000
Grupo Financiero Bancomer, S.A. de
C.V., C (A) ........................... 2,950,000 3,304,000
Mercantile Bancorporation Inc. ......... 300,000 10,537,500
Michigan National Corporation .......... 100,000 7,225,000
Midlantic Corporation .................. 400,000 11,624,800
UJB Financial Corp. .................... 400,000 11,050,000
Washington Federal Savings and Loan
Association ........................... 425,000 9,296,875
Total ................................. 92,488,175
Biotechnology and Medical Services - 2.14%
Cerner Corporation ..................... 250,000 6,843,750
HBO & Company .......................... 300,000 7,612,500
St. Jude Medical, Inc. ................. 200,000 6,450,000
Total.................................. 20,906,250
Building - 3.00%
Sherwin-Williams Company (The) ......... 300,000 9,450,000
Temple-Inland Inc. ..................... 300,000 14,287,500
United Dominion Realty Trust, Inc. ..... 400,000 5,600,000
Total ................................. 29,337,500
Chemicals Major - 1.09%
Air Products & Chemicals, Inc. ......... 135,600 5,746,050
Praxair, Inc. .......................... 250,000 4,875,000
Total ................................. 10,621,050
Chemicals Specialty and Miscellaneous Technology - 0.54%
United Waste Systems, Inc.* ............ 23,900 442,150
Xerox Corporation ...................... 50,000 4,887,500
Total ................................. 5,329,650
Computer Services and Software - 3.50%
First Data Corporation ................. 275,000 11,378,125
General Motors Corporation, Class E .... 300,000 10,462,500
Informix Corporation* .................. 800,000 12,449,600
Total ................................. 34,290,225
Domestic Oil - 0.99%
Apache Corporation ..................... 350,000 9,668,750
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED ACCUMULATIVE FUND
JUNE 30, 1994
Shares Value
COMMON STOCKS (Continued)
Drugs and Hospital Supply - 1.85%
Biocraft Laboratories Inc. ............. 150,000 $ 2,043,750
Merck & Co., Inc. ...................... 250,000 7,437,500
Mylan Laboratories Inc. ................ 150,000 3,187,500
Watson Pharmaceuticals Inc.* ........... 300,000 5,437,500
Total ................................. 18,106,250
Electronics - 2.40%
cisco Systems, Inc.* ................... 500,000 11,625,000
electroglas* ........................... 39,500 1,352,875
General Electric Company ............... 225,000 10,490,625
Total ................................. 23,468,500
Financial - 0.54%
Grupo Financiero Banamex Accival,
S.A. de C.V., B (A) ................... 300,000 1,680,000
Grupo Financiero Banamex Accival,
S.A. de C.V., C (A) ................... 525,000 3,319,050
Grupo Financiero Banamex Accival,
S.A. de C.V., L (A) ................... 41,250 255,338
Total ................................. 5,254,388
Food and Related - 2.41%
Ralcorp Holdings* ...................... 300,000 4,762,500
Sara Lee Corporation ................... 500,000 10,625,000
Tyson Foods, Inc. ...................... 350,000 8,202,950
Total ................................. 23,590,450
Hospital Management - 2.82%
Columbia/HCA Healthcare Corporation .... 400,000 15,000,000
Intergroup Healthcare Corporation* ..... 150,000 6,675,000
Sierra Health Services, Inc.* .......... 250,000 5,875,000
Total ................................. 27,550,000
Household Products - 1.23%
Procter & Gamble Company (The) ......... 225,000 12,009,375
Insurance - 8.66%
American General Corporation ........... 300,000 8,287,500
American Re Corporation* ............... 350,000 10,806,250
Equitable of Iowa Companies ............ 250,000 7,906,250
First Colony Corporation ............... 400,000 8,600,000
NWNL Companies, Inc. (The) ............. 200,000 6,650,000
National Re Corporation ................ 209,600 5,423,400
SAFECO Corporation ..................... 150,000 8,334,300
Sphere Drake Holdings Ltd. ............. 300,000 4,875,000
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED ACCUMULATIVE FUND
JUNE 30, 1994
Shares Value
COMMON STOCKS (Continued)
Insurance (Continued)
SunAmerica Corporation ................. 200,000 $ 8,175,000
TIG Holdings, Inc. ..................... 700,000 14,000,000
20th Century Industries ................ 100,000 1,687,500
Total ................................. 84,745,200
International Oil - 7.93%
Chevron Corporation .................... 250,000 10,468,750
Exxon Corporation ...................... 300,000 16,987,500
Mobil Corporation ...................... 300,000 24,487,500
Texaco Inc. ............................ 425,000 25,659,375
Total ................................. 77,603,125
Leisure Time - 4.11%
Comcast Corporation, Class A ........... 500,000 8,968,500
Walt Disney Company (The) .............. 250,000 10,406,250
Tele-Communications, Inc., Class A* .... 500,000 10,250,000
Time Warner Incorporated ............... 300,000 10,537,500
Total ................................. 40,162,250
Office Equipment and Supplies - 0.92%
Pitney Bowes Inc. ...................... 234,000 8,950,500
Paper - 2.75%
International Paper Company ............ 200,000 13,250,000
Union Camp Corporation ................. 300,000 13,612,500
Total ................................. 26,862,500
Public Utilities - Electric - 2.46%
Duke Power Company ..................... 150,000 5,362,500
Peco Energy Company .................... 400,000 10,550,000
Pinnacle West Capital Corporation ...... 500,000 8,187,500
Total ................................. 24,100,000
Publishing and Advertising - 0.92%
Times Mirror Company (The) ............. 300,000 9,037,500
Railroads - 2.87%
Norfolk Southern Corporation ........... 200,000 12,600,000
Southern Pacific Rail Corporation* ..... 500,000 9,812,500
Union Pacific Corporation .............. 100,000 5,662,500
Total ................................. 28,075,000
Retailing - 11.73%
Books-A-Million, Inc.* ................. 250,000 5,812,500
Charming Shoppes Inc. .................. 500,000 4,625,000
Dillard Department Stores, Inc.,
Class A ............................... 400,000 12,350,000
See Notes to Schedules of Investments on page .
<PAGE>
THE INVESTMENTS OF UNITED ACCUMULATIVE FUND
JUNE 30, 1994
Shares Value
COMMON STOCKS (Continued)
Retailing - (Continued)
Family Dollar Stores, Inc. ............. 500,000 $ 6,687,500
Federated Department Stores, Inc.* ..... 700,000 14,000,000
Food Lion, Inc. ........................ 500,000 3,062,500
Gap, Inc. (The) ........................ 200,000 8,550,000
May Department Stores Company (The) .... 350,000 13,737,500
Penney (J.C.) Company, Inc. ............ 300,000 16,275,000
Rite Aid Corporation ................... 500,000 10,125,000
Toys "R" Us, Inc.* ..................... 300,000 9,825,000
Wal-Mart Stores, Inc. .................. 400,000 9,700,000
Total ................................. 114,750,000
Telecommunications - 4.69%
AT&T Corporation ....................... 300,000 16,312,500
MCI Communications Corporation ......... 450,000 9,984,150
MFS Communications Company, Inc.* ...... 200,000 4,900,000
US WEST Inc. ........................... 350,000 14,656,250
Total ................................. 45,852,900
TOTAL COMMON STOCKS - 80.31% $785,528,288
(Cost: $839,309,801)
Principal
Amount in
Thousands
SHORT-TERM SECURITIES
Commercial Paper
Automotive - 1.53%
Hertz Corp.:
4.45%, 7-26-94 ........................ $ 5,000 4,984,549
4.32%, 7-27-94 ........................ 10,000 9,968,800
Total ................................. 14,953,349
Banks and Savings and Loans - 0.09%
U.S. Bancorp,
Master Note ........................... 871 871,000
Building - 0.93%
Weyerhaeuser Company:
4.29%, 7-12-94 ........................ 5,550 5,542,725
4.3%, 7-20-94 ......................... 3,555 3,546,932
Total ................................. 9,089,657
Computer Services and Software - 1.10%
Electronic Data Systems Corp.:
4.29%, 7-7-94 ......................... 3,300 3,297,641
4.32%, 7-7-94 ......................... 715 714,485
4.35%, 7-8-94 ......................... 6,755 6,749,286
Total ................................. 10,761,412
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED ACCUMULATIVE FUND
JUNE 30, 1994
Principal
Amount in
Thousands Value
SHORT-TERM SECURITIES (Continued)
Commercial Paper (Continued)
Consumer Electronics and Appliances - 0.74%
TDK (USA) Corp.,
4.25%, 7-18-94 ........................ $ 7,240 $ 7,225,470
Drugs and Hospital Supply - 2.33%
Baxter International Inc.,
4.35%, 7-15-94 ........................ 1,250 1,247,885
Merck & Co., Inc.,
4.3%, 7-22-94 ......................... 14,500 14,463,629
SmithKline Beecham Corp.,
4.23%, 7-18-94 ........................ 7,110 7,095,798
Total ................................. 22,807,312
Financial - 4.92%
Associates Corporation of North America,
Master Note ........................... 3,005 3,005,000
B.A.T. Capital Corp.,
4.28%, 7-21-94 ........................ 9,170 9,148,196
Dana Credit Corp.,
4.43%, 7-8-94 ......................... 5,000 4,995,693
Ford Motor Credit Company,
4.33%, 7-12-94 ........................ 8,010 7,999,402
Kerr-McGee Credit Corp.,
4.4%, 7-15-94 ......................... 5,330 5,320,880
Philip Morris Capital Corp.,
4.3%, 7-21-94 ......................... 5,640 5,626,527
Textron Financial Corp.,
4.6%, 7-22-94 ......................... 5,000 4,986,583
Transamerica Financial Group,
4.3%, 7-6-94 .......................... 7,000 6,995,819
Total ................................. 48,078,100
Food and Related - 1.90%
Heinz (H.J.) Company,
4.3%, 7-14-94 ......................... 14,500 14,477,485
Sara Lee Corporation,
Master Note ........................... 4,043 4,043,000
Total ................................. 18,520,485
Insurance - 0.65%
Aon Corporation,
4.25%, 7-8-94 ......................... 6,400 6,394,711
Leisure Time - 0.24%
Grand Metropolitan Investment Corp.,
4.25%, 7-8-94 ......................... 2,400 2,398,017
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED ACCUMULATIVE FUND
JUNE 30, 1994
Principal
Amount in
Thousands Value
SHORT-TERM SECURITIES (Continued)
Commercial Paper (Continued)
Metals and Mining - 0.67%
ALCAN Aluminum Limited,
4.3%, 7-15-94 ......................... $ 6,530 $ 6,519,080
Paper - 0.20%
Champion International Corporation,
4.35%, 7-11-94 ........................ 2,000 1,997,583
Public Utilities - Electric - 4.14%
New York State Electric & Gas Corp.,
4.43%, 7-7-94 ......................... 8,000 7,994,093
Pacificorp:
4.37%, 7-12-94 ........................ 10,000 9,986,647
4.4%, 7-13-94 ......................... 5,170 5,162,417
Potomac Electric Power Co.,
4.25%, 7-21-94 ........................ 2,000 1,995,278
Public Service Electric & Gas Co.:
4.47%, 7-18-94 ........................ 6,370 6,356,554
4.43%, 8-9-94 ......................... 9,000 8,956,808
Total ................................. 40,451,797
Retailing - 0.12%
K Mart Corporation,
4.45%, 7-6-94 ......................... 1,200 1,199,258
Total Commercial Paper - 19.56% 191,267,231
Commercial Paper (backed by irrevocable
bank letter of credit)
Automotive - 0.10%
Hyundai Motor Finance Co.
(Bank of America NT & SA),
4.26%, 7-7-94 ......................... 1,000 999,290
Financial - 0.69%
Spiegel Funding Corp. (Dresdner
Bank A.G.),
4.27%, 7-8-94 ......................... 6,750 6,744,396
Total Commercial Paper (backed by
irrevocable bank letter of credit) - 0.79% 7,743,686
United States Government Obligation - 1.07%
Federal National Mortgage Association,
4.78%, 7-1-94 ......................... 10,500 10,500,000
TOTAL SHORT-TERM SECURITIES - 21.42% $209,510,917
(Cost: $209,510,917)
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED ACCUMULATIVE FUND
JUNE 30, 1994
Value
TOTAL INVESTMENT SECURITIES - 101.73% $995,039,205
(Cost: $1,048,820,718)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.73%) (16,888,988)
NET ASSETS - 100.00% $978,150,217
See Notes to Schedules of Investments on page 37.
<PAGE>
SHAREHOLDER SUMMARY
- ------------------------------------------------------------------------
UNITED SCIENCE AND TECHNOLOGY FUND
PORTFOLIO STRATEGY:
Technology-related OBJECTIVE: Long-term appreciation
stocks of capital.
Generally at least 80% STRATEGY: Invests in common
in science or technology stocks of companies that
securities; may have more are expected to benefit
than 20% in debt securities. from scientific or technological
discoveries or developments.
Cash Reserves The use of cash reserves (often invested
in money market securities) for
defensive purposes is a strategy that
may be utilized by the Science and
Technology Fund from time to time.
Moving into cash reserve positions at
times thought to be near a major stock
market peak allows the Fund the
opportunity to capture profits and
attempts to cushion the impact of market
declines. The added flexibility
provided by our CASH RESERVES STRATEGY
has from time to time been an important
element in our past success and, when
deemed appropriate, may be used in the
management of the portfolio in the
future.
FOUNDED: 1950
DIVIDENDS: PAID SEMIANNUALLY
<PAGE>
PERFORMANCE SUMMARY
PER SHARE DATA
For the Six Months Ended June 30, 1994
- --------------------------------------
NET ASSET VALUE ON
6/30/94 $ 13.32
12/31/93 14.83
-------
CHANGE PER SHARE $ (1.51)
=======
Past performance is not necessarily an indication of future results.
TOTAL RETURN HISTORY
Average Annual Total Return
---------------------------
With Without
Period Sales Load* Sales Load**
- ------ ----------- ------------
1-year period ended 6-30-94 -7.89% -2.27%
5-year period ended 6-30-94 8.60% 9.90%
10-year period ended 6-30-94 12.24% 12.91%
*Performance data quoted represents past performance and is based on deduction
of 5.75% 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 June 30, 1994, United Science and Technology Fund had net assets totaling
$406,171,840 invested in a diversified portfolio of:
85.50% Common Stocks
14.01% Cash and Cash Equivalents
0.49% Corporate Debt Security
As a shareholder of United Science and Technology Fund, for every $100 you had
invested on June 30, 1994, your Fund owned:
Technological Stocks $59.69
Cash and Cash Equivalents 14.01
Basic Industries Stocks 13.33
Consumer Stocks 10.72
Financial Stocks 1.76
Corporate Debt Security .49
Not all holdings will be represented in the portfolio at all times.
<PAGE>
- ---------------------------------------------------------------------------
These STOCK CATEGORIES are provided as a reference only. Not all categories or
subcategories will be represented in a portfolio at all times. Refer to the
following pages for a more detailed portfolio listing.
BASIC INDUSTRIES
Airlines
Automotive
Building
Chemicals Major
Electrical Equipment
Engineering and Construction
Machinery
Manufacturers
Metals and Mining
Multi-Industry
Paper
Precious Metals
Railroad Equipment
Railroads
Shipping
Steel
Tire and Rubber
Trucking
CONSUMER
Beverages
Consumer Electronics and Appliances
Food and Related
Hospital Management
Household Products
Leisure Time
Packaging and Containers
Publishing and Advertising
Retailing
Services, Consumer and Business
Textiles and Apparel
Tobacco
ENERGY AND ENERGY-RELATED
Canadian Oil
Coal
Domestic Oil
International Oil
Oil Services
Propane
FINANCIAL
Banks and Savings and Loans
Financial
Insurance
PUBLIC UTILITIES
Electric
Gas
Pipelines
TECHNOLOGICAL
Aerospace
Biotechnology and Medical Services
Chemicals Specialty and Miscellaneous Technology
Computers and Office Equipment
Drugs and Hospital Supply
Electronics
Telecommunications
<PAGE>
THE INVESTMENTS OF UNITED SCIENCE AND TECHNOLOGY FUND
JUNE 30, 1994
Shares Value
COMMON STOCKS
Automotive - 4.59%
General Motors Corporation ............. 135,000 $ 6,783,750
Hayes Wheels International, Inc. ....... 150,000 4,162,500
Superior Industries International, Inc. 240,000 7,680,000
Total ................................. 18,626,250
Biotechnology and Medical Services - 4.93%
Cerner Corporation* .................... 246,000 6,734,250
HBO & Company .......................... 200,000 5,075,000
Kendall International, Inc.* ........... 85,000 4,335,000
Ventritex, Inc.* ....................... 210,000 3,885,000
Total ................................. 20,029,250
Computer Services and Software - 24.10%
BMC Software, Inc.* .................... 100,000 4,350,000
Broderbund Software, Inc.* ............. 198,000 8,910,000
Computer Associates International,
Inc. .................................. 150,000 6,000,000
Compuware Corporation* ................. 100,000 4,137,500
First Data Corporation ................. 200,000 8,275,000
General Motors Corporation, Class E .... 330,000 11,508,750
Informix Corporation* .................. 656,000 10,208,672
Intuit* ................................ 190,000 6,341,250
Microsoft Corporation* ................. 200,000 10,312,400
Oracle Systems Corporation* ............ 240,000 8,984,880
Parametric Technology Corporation* ..... 370,000 8,371,250
ParcPlace Systems, Inc. ................ 33,000 577,500
Pinnacle Micro, Inc.* .................. 150,000 2,118,750
Synopsys, Inc.* ........................ 100,000 3,762,500
Wonderware Corporation ................. 300,000 4,050,000
Total ................................. 97,908,452
Computer Systems - 0.99%
Compaq Computer Corporation* ........... 125,000 4,031,250
Consumer Electronics and Appliances - 0.51%
Rival Company (The) .................... 100,000 2,068,700
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED SCIENCE AND TECHNOLOGY FUND
JUNE 30, 1994
Shares Value
COMMON STOCKS (Continued)
Drugs and Hospital Supply - 3.96%
Roche Holdings AG (A) .................. 3,000 $ 14,308,209
Vertex Pharmaceuticals Incorporated* ... 150,000 1,781,250
Total ................................. 16,089,459
Electrical Equipment - 1.38%
General Electric Company ............... 120,000 5,595,000
Electronics - 16.50%
Advanced Technology Materials Inc.* .... 127,500 621,563
Applied Materials, Inc.* ............... 230,000 9,818,010
Atmel Corporation* ..................... 190,000 4,488,750
cisco Systems, Inc.* ................... 500,600 11,638,950
Intel Corporation ...................... 100,000 5,862,500
Lam Research* .......................... 185,000 5,203,125
Level One Communications,
Incorporated* ......................... 200,000 3,600,000
Micron Technology, Inc. ................ 200,000 6,900,000
Motorola, Inc. ......................... 130,000 5,785,000
Quickturn System Inc.* ................. 127,500 1,259,063
Summa Four, Inc.* ...................... 200,000 4,375,000
Wellfleet Communications, Inc.* ........ 120,000 2,992,440
Xilinx, Inc.* .......................... 131,000 4,486,750
Total ................................. 67,031,151
Hospital Management - 6.10%
Columbia/HCA Healthcare Corporation .... 100,000 3,750,000
Mid Atlantic Medical Services, Inc.* ... 100,000 4,443,700
Sierra Health Services, Inc.* .......... 120,000 2,820,000
United HealthCare Corporation .......... 300,000 13,762,500
Total ................................. 24,776,200
Insurance - 1.76%
ADESA Corporation* ..................... 140,000 1,715,000
Insurance Auto Auctions, Inc.* ......... 165,000 5,424,375
Total ................................. 7,139,375
Leisure Time - 0.78%
Grupo Televisa S.A. de C.V., CPO
Shares (A) ............................ 120,000 3,045,480
Iwerks Entertainment, Inc.* ............ 20,000 128,740
Total ................................. 3,174,220
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED SCIENCE AND TECHNOLOGY FUND
JUNE 30, 1994
Shares Value
COMMON STOCKS (Continued)
Machinery - 7.36%
Caterpillar Inc. ....................... 50,000 $ 5,000,000
Cognex Corporation* .................... 260,000 3,640,000
Deere & Company ........................ 100,000 6,762,500
Illinois Tool Works Inc. ............... 100,000 3,900,000
Parker Hannifin Corporation ............ 114,700 4,889,088
Trinova Corporation .................... 165,000 5,713,125
Total ................................. 29,904,713
Office Equipment and Supplies - 1.32%
Pitney Bowes Inc. ...................... 140,000 5,355,000
Services, Consumer and Business - 3.33%
Block (H&R), Inc. ...................... 140,000 5,495,000
CUC International Inc.* ................ 300,000 8,025,000
Total ................................. 13,520,000
Telecommunications - 7.89%
ANTEC Corporation* ..................... 100,000 2,362,500
Applied Digital Access, Inc.* .......... 200,000 3,725,000
Ascend Communications, Inc.* ........... 115,000 1,466,250
DSC Communications Corporation* ........ 200,000 3,912,400
MFS Communications Company, Inc.* ...... 230,000 5,635,000
Rogers Cantel Mobile Communications
Inc.* ................................. 200,000 4,837,400
Telefonaktiebolaget LM Ericsson,
Class B, ADR .......................... 110,000 5,451,820
Tellabs* ............................... 150,000 4,631,250
Total ................................. 32,021,620
TOTAL COMMON STOCKS - 85.50% $347,270,640
(Cost: $249,949,418)
Principal
Amount in
Thousands
CORPORATE DEBT SECURITY - 0.49%
Financial
American Express Company,
6.25%, 10-15-96 ....................... $1,838 $ 1,975,000
(Cost: $1,837,500)
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED SCIENCE AND TECHNOLOGY FUND
JUNE 30, 1994
Principal
Amount in
Thousands Value
SHORT-TERM SECURITIES
Commercial Paper
Aerospace - 2.22%
United Technologies Corp.,
4.26%, 7-28-94 ........................ $ 9,040 $ 9,011,117
Banks and Savings and Loans - 2.30%
U.S. Bancorp,
Master Note ........................... 9,328 9,328,000
Consumer Electronics and Appliances - 1.10%
Whirlpool Corporation,
4.35%, 8-8-94 ......................... 4,470 4,449,475
Drugs and Hospital Supply - 0.88%
SmithKline Beecham Corp.,
4.33%, 7-18-94 ........................ 3,580 3,572,680
Financial - 5.44%
Associates Corporation of North America,
Master Note ........................... 8,521 8,521,000
Bell Atlantic Financial Services Inc.:
4.25%, 7-18-94 ........................ 3,780 3,772,414
4.26%, 7-18-94 ........................ 2,340 2,335,293
PHH Corp.,
4.26%, 7-18-94 ........................ 2,800 2,794,367
Philip Morris Capital Corp.,
4.3%, 7-21-94 ......................... 4,690 4,678,796
Total ................................. 22,101,870
Food and Related - 1.37%
Sara Lee Corporation,
Master Note ........................... 5,568 5,568,000
Public Utilities - Electric - 0.31%
Carolina Power & Light Co.,
4.25%, 7-11-94 ........................ 1,280 1,278,489
Services, Consumer and Business - 0.49%
Hertz Corp.,
4.45%, 8-2-94 ......................... 2,020 2,012,010
TOTAL SHORT-TERM SECURITIES - 14.11% $ 57,321,641
(Cost: $57,321,641)
See Notes to Schedules of Investments on page 37.
<PAGE>
THE INVESTMENTS OF UNITED SCIENCE AND TECHNOLOGY FUND
JUNE 30, 1994
Value
TOTAL INVESTMENT SECURITIES - 100.10% $406,567,281
(Cost: $309,108,559)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.10%) (395,441)
NET ASSETS - 100.00% $406,171,840
See Notes to Schedules of Investments on page .
<PAGE>
UNITED FUNDS, INC.
Notes to Schedules of Investments
*No income dividends were paid during the preceding 12 months.
(A) Listed on an exchange outside the United States.
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 FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1994
<TABLE>
<CAPTION>
United
United United United Science and
Bond Income Accumulative Technology
Fund Fund Fund Fund
----------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investment securities --
at value (Notes 1 and 3) $555,935,913 $3,090,825,457 $ 995,039,205 $406,567,281
Cash .............. 7,469 37,355 9,949 25,088
Receivables:
Investment securities
sold ............ 5,491,721 --- 26,665,571 737,637
Dividends and interest 8,768,671 7,223,106 1,070,331 234,383
Fund shares sold .. 677,796 7,001,710 362,211 508,653
Prepaid insurance
premium ........... 28,342 101,312 52,983 19,822
----------------------------------------------------------
Total assets .... 570,909,912 3,105,188,940 1,023,200,250 408,092,864
Liabilities ----------------------------------------------------------
Payable for investment
securities purchased 11,023,456 13,154,790 42,589,458 1,033,900
Payable for Fund
shares redeemed ... 1,512,521 4,781,549 2,089,258 657,096
Accrued service fee . 110,439 569,516 166,887 79,811
Accrued transfer agency
and dividend disbursing 73,013 434,933 112,601 72,899
Accrued accounting
services fee....... 5,833 8,333 8,333 5,000
Other .............. 47,461 275,864 83,496 72,318
---------------------------------------------------------
Total liabilities 12,772,723 19,224,985 45,050,033 1,921,024
---------------------------------------------------------
Total net assets $558,137,189 $3,085,963,955 $ 978,150,217 $406,171,840
Net Assets =========================================================
$1.00 par value capital stock
Capital stock ..... $ 95,756,138 $ 128,543,913$ 140,146,156 $ 30,493,947
Additional paid-in
capital .......... 505,914,657 2,018,424,825 832,550,641 268,057,332
Accumulated undistributed
income (loss):
Accumulated undistributed
net investment income
(loss) ........... 450,802 2,163,875 2,102,810 (276,837)
Accumulated undistributed net
realized gain (loss) on
investment transactions
and foreign currency
transactions ..... (13,724,867) 19,187,007 57,132,123 10,438,676
Net unrealized appreciation
(depreciation) of
investments at end
of period ........ (30,259,541) 917,644,335 (53,781,513) 97,458,722
-----------------------------------------------------------
Net assets applicable to
outstanding units
of capital ..... $558,137,189 $3,085,963,955 $ 978,150,217 $406,171,840
===========================================================
Net asset value per share
(net assets divided by
shares outstanding) $5.83 $24.01 $6.98 $13.32
===== ====== ===== ======
Capital shares
outstanding ........ 95,756,138 128,543,913 140,146,156 30,493,947
Capital shares authorized 260,000,000 300,000,000 340,000,000 100,000,000
</TABLE>
See notes to financial statements.
<PAGE>
UNITED FUNDS, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended JUNE 30, 1994
<TABLE>
<CAPTION>
United
United United United Science and
Bond Income Accumulative Technology
Fund Fund Fund Fund
------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
Income:
Dividends ......... $ --- $ 27,955,961 $ 7,551,539 $ 949,654
Interest .......... 21,127,374 6,180,006 3,209,751 792,100
----------- ------------ ----------- -----------
Total income .... 21,127,374 34,135,967 10,761,290 1,741,754
----------- ------------ ----------- -----------
Expenses (Note 2):
Investment
management fee ... 1,332,474 7,258,097 2,359,100 1,357,455
Transfer agency and
dividend disbursing 409,023 1,925,005 527,708 400,652
Service fee ....... 291,620 1,507,079 443,485 227,634
Custodian fees .... 20,669 207,167 68,329 31,694
Accounting services fee 35,000 50,000 47,500 30,000
Audit fees ........ 23,627 20,051 22,708 17,904
Legal fees ........ 4,580 21,558 7,391 4,359
Other ............. 51,379 250,999 47,357 52,642
----------- ------------ ----------- -----------
Total expenses .. 2,168,372 11,239,956 3,523,578 2,122,340
----------- ------------ ----------- -----------
Net investment
income (loss) 18,959,002 22,896,011 7,237,712 (380,586)
----------- ------------ ----------- -----------
Realized and Unrealized
Gain (Loss) on
Investments
Realized net gain (loss)
on securities ..... (15,543,583) 12,475,588 60,329,319 12,418,416
Realized net gain (loss)
on foreign currency
transactions....... --- (50,597) (84,903) 43,976
----------- ------------ ----------- -----------
Realized net gain (loss)
on investments ... (15,543,583) 12,424,991 60,244,416 12,462,392
Unrealized depreciation
in value of investments
during the period.. (39,473,790) (112,659,594) (91,523,455) (57,877,673)
------------ ------------ ----------- -----------
Net loss on
investments ..... (55,017,373) (100,234,603) (31,279,039) (45,415,281)
------------ ------------ ----------- -----------
Net decrease in
net assets
resulting
from operations. $(36,058,371) $( 77,338,592) $(24,041,327) $(45,795,867)
============ ============ =========== ===========
See notes to financial statements.
</TABLE>
<PAGE>
UNITED FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 1994
<TABLE>
<CAPTION>
United
United United United Science and
Bond Income Accumulative Technology
Fund Fund Fund Fund
------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net investment income
(loss) .......... $ 18,959,002 $ 22,896,011 $ 7,237,712 $ (380,586)
Realized net gain (loss)
on investments .. (15,543,583) 12,424,991 60,244,416 12,462,392
Unrealized depreciation (39,473,790) (112,659,594) (91,523,455) (57,877,673)
------------------------------------------------------------
Net decrease in net
assets resulting
from operations. (36,058,371) (77,338,592) (24,041,327) (45,795,867)
------------------------------------------------------------
Dividends to shareholders
from net investment
income* ........... (18,818,913) (21,452,991) (5,589,265) ---
------------------------------------------------------------
Capital share
transactions**..... (28,653,658) 124,682,262 (25,993,489) 5,357,067
------------------------------------------------------------
Total increase
(decrease) ...... (83,530,942) 25,890,679 (55,624,081) (40,438,800)
Net Assets
Beginning of period 641,668,131 3,060,073,276 1,033,774,298 446,610,640
------------------------------------------------------------
End of period ...... $558,137,189 $3,085,963,955 $ 978,150,217 $406,171,840
============================================================
Undistributed net
investment income $450,802 $2,163,875 $2,102,810 $(276,837)
======== ========== ========== =========
*See "Financial Highlights" on pages 42-45.
**Shares issued from sale
of shares ......... 3,721,158 9,610,254 3,017,286 1,804,447
Shares issued from
reinvestment of
dividends ......... 2,578,994 771,033 714,327 ---
Shares redeemed..... (10,999,550) (5,380,802) (7,329,821) (1,424,020)
---------- --------- --------- ---------
Increase (decrease) in
outstanding capital
shares ............ (4,699,398) 5,000,485 (3,598,208) 380,427
========== ========= ========= =========
Value issued from sale
of shares.......... $22,939,015 $239,858,048 $21,728,294 $26,516,941
Value issued from
reinvestment of
dividends ......... 15,725,205 19,407,812 5,129,175 ---
Value redeemed ..... (67,317,878) (134,583,598) (52,850,958)(21,159,874)
----------- ------------ ----------- -----------
Increase (decrease) in
outstanding capital $(28,653,658) $124,682,262 $(25,993,489)$ 5,357,067
=========== ============ =========== ===========
See notes to financial statements.
</TABLE>
<PAGE>
UNITED FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the Fiscal Year Ended DECEMBER 31, 1993
<TABLE>
<CAPTION>
United
United United United Science and
Bond Income Accumulative Technology
Fund Fund Fund Fund
------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase in Net Assets
Operations:
Net investment income $ 38,703,166 $ 47,298,116 $ 13,631,477 $ 245,702
Realized net gain
on investments .. 42,273,683 72,262,232 99,077,252 19,831,519
Unrealized appreciation
(depreciation) .. (4,437,167) 297,996,504 (24,457,177) 14,872,734
----------------------------------------------------
Net increase in net
assets resulting
from operations. 76,539,682 417,556,852 88,251,552 34,949,955
----------------------------------------------------
Dividends to shareholders:*
From net investment
income .......... (38,417,817) (47,391,411) (14,057,190) (289,842)
From realized net gain
on investment
transactions ..... (31,560,821) (47,069,010) (107,396,676)(26,791,116)
In excess of realized net
gain from investment
transactions ..... --- --- (3,112,293) (2,023,716)
-----------------------------------------------------------
(69,978,638) (94,460,421) (124,566,159)(29,104,674)
-----------------------------------------------------------
Capital share
transactions**..... 45,161,486 199,815,817 77,165,152 11,958,973
-----------------------------------------------------------
Total increase .... 51,722,530 522,912,248 40,850,545 17,804,254
Net Assets
Beginning of period 589,945,601 2,537,161,028 992,923,753 428,806,386
-----------------------------------------------------------
End of period ...... $641,668,131 $3,060,073,276 $1,033,774,298$446,610,640
===========================================================
Undistributed net
investment income $310,713 $720,855 $454,363 $103,749
======== ======== ======== ========
*See "Financial Highlights" on pages 42-45.
**Shares issued from sale
of shares ......... 10,823,257 15,138,889 8,005,063 2,391,048
Shares issued from
reinvestment of
dividends and/or
distributions ..... 9,135,589 3,568,938 16,395,920 1,897,450
Shares redeemed..... (13,016,181) (10,230,919) (13,035,089) (3,465,411)
---------- ---------- ---------- ---------
Increase in
outstanding capital
shares ............ 6,942,665 8,476,908 11,365,894 823,087
========== ========== ========== =========
Value issued from sale
of shares.......... $72,085,126 $354,349,326 $ 61,908,432 $34,447,164
Value issued from
reinvestment of
dividends and/or
distributions ..... 59,457,945 85,633,675 116,166,594 27,467,139
Value redeemed ..... (86,381,585) (240,167,184) (100,909,874)(49,955,330)
----------- ------------ ------------ -----------
Increase in outstanding
capital ........... $45,161,486 $199,815,817 $ 77,165,152 $11,958,973
=========== ============ ============ ===========
See notes to financial statements.
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS OF
UNITED BOND FUND
For a Share of Capital Stock Outstanding Throughout Each Period:
For the
six months For the fiscal year ended December 31,
ended --------------------------------------
6/30/94 1993 1992 1991 1990 1989
---------- ----- ----- ----- ----- -----
Net asset value,
beginning of period $6.39 $6.31 $6.32 $5.80 $6.07 $6.03
---- ---- ---- ---- ---- ----
Income from investment
operations:
Net investment income .19 .41 .45 .47 .50 .55
Net realized and
unrealized gain
(loss) on
investments ..... (0.56) .41 .00 .56 (0.26) .07
---- ---- ---- ---- ---- ----
Total from investment
operations ....... (0.37) .82 .45 1.03 .24 .62
---- ---- ---- ---- ---- ----
Less distributions:
Dividends from net
investment income (0.19) (0.41) (0.46) (0.47) (0.50) (0.56)
Distribution from
capital gains ... (0.00) (0.33) (0.00) (0.04) (0.01) (0.02)
---- ---- ---- ---- ---- ----
Total distributions (0.19) (0.74) (0.46) (0.51) (0.51) (0.58)
---- ---- ---- ---- ---- ----
Net asset value,
end of period .... $5.83 $6.39 $6.31 $6.32 $5.80 $6.07
===== ===== ===== ===== ===== =====
Total return* ...... -5.85% 13.19% 7.50% 18.78% 4.24% 10.61%
Net assets, end of
period (000
omitted) .........$558,137$641,668$589,946$524,404$439,487$403,010
Ratio of expenses to
average net assets 0.73%**0.65% 0.64% 0.65% 0.67% 0.64%
Ratio of net investment
income to average
net assets ....... 6.36%** 6.14% 7.29% 7.96% 8.54% 8.97%
Portfolio turnover
rate ............. 163.95%**175.39%115.17%318.76%294.66% 353.57%
*Total return calculated without taking into account the sales load deducted
on an initial purchase.
**Annualized.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
UNITED INCOME FUND
For a Share of Capital Stock Outstanding Throughout Each Period:
For the
six months For the fiscal year ended December 31,
ended --------------------------------------
6/30/94 1993 1992 1991 1990 1989
---------- ------ ------ ------ ------ ------
Net asset value,
beginning of period $24.77 $22.05 $20.44 $16.46 $18.69 $16.76
----- ----- ----- ----- ----- -----
Income from investment
operations:
Net investment income .18 .40 .46 .51 .61 .65
Net realized and
unrealized gain
(loss) on
investments ..... (0.77) 3.11 1.96 4.29 (1.61) 3.89
----- ----- ----- ----- ----- -----
Total from investment
operations ....... (0.59) 3.51 2.42 4.80 (1.00) 4.54
----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.17) (0.40) (0.46) (0.53) (0.63) (0.65)
Distribution from
capital gains ... (0.00) (0.39) (0.35) (0.29) (0.60) (1.96)
----- ----- ----- ----- ----- -----
Total distributions (0.17) (0.79) (0.81) (0.82) (1.23) (2.61)
----- ----- ----- ----- ----- -----
Net asset value,
end of period .... $24.01 $24.77 $22.05 $20.44 $16.46 $18.69
====== ====== ====== ====== ====== ======
Total return* ...... -2.41% 16.05% 11.96% 29.64% -5.45% 27.49%
Net assets, end of
period (000
omitted) .........$3,085,964$3,060,073$2,537,161$2,150,986$1,578,543
$1,550,387
Ratio of expenses to
average net assets 0.72%** 0.66% 0.65% 0.66% 0.68% 0.64%
Ratio of net investment
income to average
net assets ....... 1.47%** 1.70% 2.19% 2.71% 3.44% 3.41%
Portfolio turnover
rate ............. 15.55%**21.70% 19.25% 24.68% 30.94% 60.77%
*Total return calculated without taking into account the sales load deducted
on an initial purchase.
**Annualized.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
UNITED ACCUMULATIVE FUND
For a Share of Capital Stock Outstanding Throughout Each Period:
For the
six months For the fiscal year ended December 31,
ended --------------------------------------
6/30/94 1993 1992 1991 1990 1989
---------- ------ ------ ------ ------ ------
Net asset value,
beginning of period $7.19 $7.50 $7.15 $6.03 $7.12 $6.43
----- ----- ----- ----- ----- -----
Income from investment
operations:
Net investment income .05 .11 .16 .19 .28 .31
Net realized and
unrealized gain
(loss) on
investments ..... (0.22) .55 .85 1.22 (0.99) 1.43
----- ----- ----- ----- ----- -----
Total from investment
operations ....... (0.17) .66 1.01 1.41 (0.71) 1.74
----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.04) (0.11) (0.16) (0.20) (0.29) (0.29)
Distribution from
capital gains ... (0.00) (0.84) (0.50) (0.09) (0.09) (0.76)
Distribution in
excess of capital
gains............ (0.00) (0.02) (0.00) (0.00) (0.00) (0.00)
----- ----- ----- ----- ----- -----
Total distributions (0.04) (0.97) (0.66) (0.29) (0.38) (1.05)
----- ----- ----- ----- ----- -----
Net asset value,
end of period .... $6.98 $7.19 $7.50 $7.15 $6.03 $7.12
===== ===== ===== ===== ===== =====
Total return* ...... -2.38% 9.06% 14.20% 23.68%-10.17% 27.56%
Net assets, end of
period (000
omitted) .........$978,150$1,033,774$992,924$904,635$767,218$877,109
Ratio of expenses to
average net assets 0.70%** 0.65% 0.62% 0.63% 0.64% 0.60%
Ratio of net investment
income to average
net assets ....... 1.43%** 1.34% 2.13% 2.79% 4.12% 4.19%
Portfolio turnover
rate ............. 222.14%**230.29%194.41%241.11%288.64% 338.24%
*Total return calculated without taking into account the sales load deducted
on an initial purchase.
**Annualized.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS OF
UNITED SCIENCE AND TECHNOLOGY FUND
For a Share of Capital Stock Outstanding Throughout Each Period:
For the
six months For the fiscal year ended December 31,
ended --------------------------------------
6/30/94 1993 1992 1991 1990 1989
---------- ------ ------ ------ ------ ------
Net asset value,
beginning of period $14.83 $14.64 $15.42 $10.27 $11.72 $ 9.91
------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment income
(loss) .......... (0.01) .01 .03 .10 .24 .20
Net realized and
unrealized gain
(loss) on
investments ..... (1.50) 1.21 (0.66) 5.90 (0.65) 2.50
------ ------ ------ ------ ------ ------
Total from investment
operations ....... (1.51) 1.22 (0.63) 6.00 (0.41) 2.70
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net
investment income (0.00) (0.01) (0.03) (0.10) (0.25) (0.19)
Distribution from
capital gains ... (0.00) (0.95) (0.12) (0.75) (0.79) (0.70)
Distribution in
excess of capital
gains ........... (0.00) (0.07) (0.00) (0.00) (0.00) (0.00)
------ ------ ------ ------ ------ ------
Total distributions (0.00) (1.03) (0.15) (0.85) (1.04) (0.89)
------ ------ ------ ------ ------ ------
Net asset value,
end of period .... $13.32 $14.83 $14.64 $15.42 $10.27 $11.72
====== ====== ====== ====== ====== ======
Total return* ...... -10.18% 8.51% -4.03% 59.25% -3.51% 27.40%
Net assets, end of
period (000
omitted) .........$406,172$446,611$428,806$405,380$239,077$247,584
Ratio of expenses to
average net assets 0.96%** 0.91% 0.87% 0.85% 0.90% 0.84%
Ratio of net investment
income to average
net assets ....... -0.17%** 0.06% 0.24% 0.75% 2.06% 1.73%
Portfolio turnover
rate ............. 60.82%**68.38% 45.79% 59.24% 63.86% 83.19%
*Total return calculated without taking into account the sales load deducted
on an initial purchase.
**Annualized.
See notes to financial statements.
<PAGE>
UNITED FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1994
NOTE 1 -- Significant Accounting Policies
United Funds, Inc. (the "Corporation") is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company.
The Corporation issues four classes of capital shares; each class represents
ownership of a separate mutual fund. The assets belonging to each Fund are held
separately by the Custodian. The capital shares of each Fund represent a pro
rata beneficial interest in the principal, net income and realized and
unrealized capital gains or losses of its respective investments and other
assets. The following is a summary of significant accounting policies
consistently followed by the Corporation in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles.
A. Security valuation -- Each stock and convertible bond is valued at the
latest sale price thereof on the last business day of the fiscal period as
reported by the principal securities exchange on which the issue is traded
or, if no sale is reported for a stock, the average of the latest bid and
asked prices. Bonds, other than convertible bonds, are valued using a
pricing system provided by a major dealer in bonds. Convertible bonds are
valued using this pricing system only on days when there is no sale
reported. Stocks which are traded over-the-counter are priced using NASDAQ
(National Association of Securities Dealers Automated Quotations) which
provides information on bid and asked or closing prices quoted by major
dealers in such stocks. Securities for which quotations are not readily
available are valued as determined in good faith in accordance with
procedures established by and under the general supervision of the
Corporation's Board of Directors. Short-term debt securities 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 in the Internal
Revenue Code), premiums on the purchase of bonds and post-1984 market
discount are amortized for both financial and tax reporting purposes over
the remaining lives of the bonds. Dividend income is recorded on the ex-
dividend date except that certain dividends from foreign securities are
recorded as soon as the Corporation is informed of the ex-dividend date.
Interest income is recorded on the accrual basis. See Note 3 -- Investment
Securities Transactions.
C. Foreign currency translations -- All assets and liabilities denominated in
foreign currencies are translated into U.S. dollars daily. Purchases and
sales of investment securities and accruals of income and expenses are
translated at the rate of exchange prevailing on the date of the
transaction. For assets and liabilities other than investments in
securities, net realized and unrealized gains and losses from foreign
currency translations arise from changes in currency exchange rates. The
Corporation combines fluctuations from currency exchange rates and
fluctuations in market value when computing net realized and unrealized
gain or loss from investments.
D. Federal income taxes -- It is the Corporation's policy to distribute all of
its taxable income and capital gains to its shareholders and otherwise
qualify as a regulated investment company under the Internal Revenue Code.
In addition, the Corporation intends to pay distributions as required to
avoid imposition of excise tax. Accordingly, provision has not been made
for Federal income taxes. See Note 4 -- Federal Income Tax Matters.
E. Dividends and distributions -- Dividends and distributions to shareholders
are recorded by each 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 may be due to differing
treatments for such things as deferral of wash sales and post-October
losses, foreign currency transactions, net operating losses and expiring
capital loss carryforwards.
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 for
United Bond Fund, .05% of net assets for United Income Fund and United
Accumulative Fund, and .20% for United Science and Technology Fund; and (ii) a
"Group" fee computed each day on the combined net asset values of all of the
funds in the United Group of mutual funds (approximately $10.5 billion of
combined net assets at June 30, 1994) at annual rates of .51% of the first $750
million of combined net assets, .49% on that amount between $750 million and
$1.5 billion, .47% between $1.5 billion and $2.25 billion, .45% between $2.25
billion and $3 billion, .43% between $3 billion and $3.75 billion, .40% between
$3.75 billion and $7.5 billion, .38% between $7.5 billion and $12 billion, and
.36% of that amount over $12 billion. The Fund accrues and pays this fee daily.
Pursuant to assignment of the Investment Management Agreement between the
Corporation and Waddell & Reed, Inc. ("W&R"), Waddell & Reed Investment
Management Company ("WRIMCO"), a wholly-owned subsidiary of W&R, serves as the
Corporation's investment manager.
The Corporation 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 Corporation and pricing daily the value of shares of the
Corporation. For these services, each of the four Funds 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 Fund
------------------------- ------------------
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 Corporation also pays WARSCO a 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 Corporation also reimburses W&R and WARSCO for certain out-of-pocket
costs.
As principal underwriter for the Corporation's shares, W&R received direct
and indirect gross sales commissions (which are not an expense of the
Corporation) of $11,388,372, out of which W&R paid sales commissions of
$6,333,899 and all expenses in connection with the sale of the Corporation's
shares, except for registration fees and related expenses.
Effective October 1, 1993, the Fund adopted a 12b-1 Service Plan with a
maximum fee of .25%
The Corporation paid Directors' fees of $93,895.
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 Securities Transactions
Investment securities transactions for the period ended June 30, 1994 are
summarized as follows:
United
United United United Science and
Bond IncomeAccumulative Technology
Fund Fund Fund Fund
----------- ------------------------ ------------
Purchases of investment
securities, excluding
short-term and U.S.
Government securities $271,796,347 $223,486,674$ 926,717,788$120,662,827
Purchases of U.S. Government
securities 189,021,358 45,607,813 --- ---
Purchases of short-term
securities 311,020,046 744,122,6171,071,176,932 266,185,198
Proceeds from maturities
and sales of investment
securities, excluding
short-term and U.S.
Government securities 299,597,964 231,514,6251,033,651,905 141,619,665
Proceeds from maturities and
sales of U.S. Government
securities 184,688,201 --- --- ---
Proceeds from maturities and sales
of short-term securities 313,269,750 648,966,105 981,773,844 242,336,387
Realized loss on U.S.
Government securities (1,789,121) --- --- ---
For Federal income tax purposes, cost of investments owned at June 30, 1994
and the related appreciation (depreciation) were as follows:
Aggregate
Cost AppreciationDepreciation Appreciation
-------------- --------------------------------------
United Bond Fund $ 586,195,454 $ 1,096,148 $31,355,689 $(30,259,541)
United Income Fund 2,173,181,122 944,846,690 27,202,355 917,644,335
United Accumulative
Fund 1,049,671,267 14,250,453 68,882,515 (54,632,062)
United Science and
Technology Fund 309,526,426 110,936,716 13,895,861 97,040,855
NOTE 4 -- Federal Income Tax Matters
The Corporation's income and expenses attributed to each Fund and the gains
and losses on security transactions of each Fund have been attributed to that
Fund for Federal income tax purposes as well as for accounting purposes. For
Federal income tax purposes, United Income Fund, United Accumulative Fund and
United Science and Technology Fund realized capital gain net income of
$53,914,906, $102,177,031 and $21,770,561, respectively, during the year ended
December 31, 1993. A portion of the capital gain net income was paid to
shareholders during the year ended December 31, 1993. For Federal income tax
purposes, United Bond Fund realized capital gain net income in the amount of
$41,552,432 during the year ended December 31, 1993. This capital gain net
income was partially offset by utilization of all available capital loss
carryovers resulting in distributable capital gains of $33,322,306. A portion
of the capital gain net income was paid to shareholders during the year ended
December 31, 1993. Remaining capital gain net income will be distributed to
each Fund's shareholders.
Internal Revenue Code regulations permit each Fund to defer into its next
fiscal year net capital losses incurred between each November 1 and the end of
its fiscal year ("post-October losses"). From November 1, 1993 through December
31, 1993, United Accumulative Fund and United Science and Technology Fund
incurred net capital losses of $2,287,546 and $1,521,176, respectively, which
have been deferred to the fiscal year ending December 31, 1994.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
United Funds, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedules 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 each of the four mutual funds
(United Bond Fund, United Income Fund, United Accumulative Fund and United
Science and Technology Fund) comprising United Funds, Inc. (hereafter referred
to as the "Corporation") at June 30, 1994, the results of its operations for the
six months then ended and 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
Corporation'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 June 30, 1994 by correspondence with the custodian
and brokers and the application of alternative auditing procedures where
confirmations from brokers were not received, provide a reasonable basis for the
opinion expressed above.
PRICE WATERHOUSE LLP
Kansas City, Missouri
July 29, 1994
<PAGE>
To all IRA Planholders:
As required by law, income tax will automatically be withheld from any
distribution or withdrawal from an IRA unless you make a written election not to
have taxes withheld. The election may be made by submitting forms provided by
Waddell & Reed, Inc. which can be obtained from your Waddell & Reed
representative or by submitting Internal Revenue Service form W-4P. Once made,
an election can be revoked by providing written notice to Waddell & Reed, Inc.
If you elect not to have tax withheld you may be required to make payments of
estimated tax. Penalties may be imposed by the IRS if withholding and estimated
tax payments are not adequate.
<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
James C. Cusser, Vice President
Abel Garcia, Vice President
Robert L. Hechler, Vice President
Henry J. Herrmann, Vice President
John M. Holliday, Vice President
Theodore W. Howard, Vice President and Treasurer
Antonio Intagliata, Vice President
Rodney O. McWhinney, Vice President
Sharon K. Pappas, Vice President and Secretary
Carl E. Sturgeon, Vice President
Russell E. Thompson, Vice President
<PAGE>
THE UNITED GROUP OF MUTUAL FUNDS
- -------------------------------------------------------------------
United Cash Management, Inc.
United Government Securities Fund, Inc.
United Bond Fund
United Municipal Bond Fund, Inc.
United Continental Income Fund, Inc.
United Income Fund
United Municipal High Income Fund, Inc.
United High Income Fund, Inc.
United High Income Fund II, Inc.
United Accumulative Fund
United Vanguard Fund, Inc.
United New Concepts Fund, Inc.
United Science and Technology Fund
United International Growth Fund, Inc.
United Gold & Government Fund, Inc.
United Retirement Shares, Inc.
- ------------------------------------
FOR MORE INFORMATION:
Contact your representative, or your
local office as listed on your
Account Statement, or contact:
WADDELL & REED
CUSTOMER SERVICE
6300 Lamar Avenue
P.O. Box 29217
Shawnee Mission, KS 66201-9217
(913) 236-1303
NUR1000SA(6-94)
printed on recycled paper
