United
High Income
Fund, Inc.
ANNUAL
REPORT
----------------------------------------
For the fiscal year ended March 31, 1994
<PAGE>
FUND MANAGER'S LETTER
- -----------------------------------------------------------------
MARCH 31, 1994
Dear Shareholder:
This report relates to the operation of United High Income Fund, Inc. for
the fiscal year ended March 31, 1994. The following discussion, graphs and
tables provide you with information regarding the Fund's performance during that
period.
During the first part of the Fund's past fiscal year, interest rates
declined. A record amount of new below-investment-grade debt securities was
issued, mostly to refinance callable higher cost debt. Significant new money
flowed into mutual funds investing in high-yield securities. Because of the
activity in the market, prices for bonds rose to high levels and yields sank to
historically low levels. Lower-rated securities, as well as securities of
distressed or bankrupt companies, outperformed higher quality securities because
many investors were hungry for yield. After October, interest rates began to
rise and some investors shifted away from lower-rated debt securities, tempering
performance from that point on.
In response to the market conditions over the Fund's past fiscal year, we
reduced the Fund's exposure to securities that were at risk of being called, and
we lengthened the average maturity of the Fund's portfolio. We invested the
Fund's portfolio in relatively higher-quality investments because we did not
believe that the yield offered by the lowest-quality debt securities outweighed
the increased credit risk and the decreased liquidity that results during times
of market turbulence. In the fourth quarter, we invested in some distressed
securities and lower-rated securities, including NWA, GPA and Macy's. Our
strategy was to purchase these securities just before resolution of the
company's problems to take advantage of the potential for increases in the
prices of these securities. We also reduced the Fund's exposure to securities
that we believed would become more volatile.
The strategies and techniques we applied resulted in the direction of the
Fund's performance during its past fiscal year remaining fairly consistent with
that of the indexes charted on the following page. Those indexes reflect the
performance of securities that generally represent the high-yield bond market
(the First Boston High Yield Index) and the universe of funds with similar
investment objectives (the Lipper High Current Yield Fund Universe Average).
We anticipate that interest rates will rise somewhat during the Fund's next
fiscal year. Therefore, we expect to continue to pursue the same strategies we
have employed recently. In addition, we will seek to enhance the portfolio's
yield and position the portfolio to take advantage of future potential
appreciation.
We appreciate your continued confidence.
Respectfully,
Louise D. Rieke
Manager, United High Income Fund
<PAGE>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
UNITED HIGH INCOME FUND, INC.,
The line graph which appears here is the paper version which was filed on Form
SE on May 24, 1994.
<PAGE>
SHAREHOLDER SUMMARY
- --------------------------------------------------------------
UNITED HIGH INCOME FUND, INC.
PORTFOLIO STRATEGY:
Invests generally in High OBJECTIVE: High level of current
Yield Fixed Income Securities income, with secondary objective of
capital
Maximum 20% Common Stock growth when consistent with the primary
objective.
STRATEGY: Invests generally in debt securities in
lower rating categories as classified by
recognized rating agencies; may also
invest up to 20% in common stocks.
FOUNDED: 1979
DIVIDENDS: PAID MONTHLY
<PAGE>
PERFORMANCE SUMMARY
PER SHARE DATA
For the Fiscal Year Ended March 31, 1994
- ----------------------------------------
DIVIDENDS PAID $ 0.80
======
NET ASSET VALUE ON
3/31/94 $ 9.20
3/31/93 9.21
------
CHANGE PER SHARE $(0.01)
======
Past performance is not necessarily indicative of future results.
TOTAL RETURN HISTORY
Average Annual Total Return
---------------------------
With Without
Period Sales Load* Sales Load**
- ------ ----------- ------------
1-year period ended 3-31-94 2.44% 8.69%
5-year period ended 3-31-94 6.03% 7.29%
10-year period ended 3-31-94 8.92% 9.57%
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 March 31, 1994, United High Income Fund, Inc. had net assets totaling
$1,006,618,511 invested in a diversified portfolio of:
89.25% Corporate Debt Securities
5.67% Cash and Cash Equivalents
3.55% Common and Preferred Stocks and Warrants
1.53% United States Government Security
As a shareholder in United High Income Fund, Inc., for every $100 you had
invested on March 31, 1994, your Fund owned:
$53.96 Consumer Bonds
24.19 Basic Industry Bonds
5.71 Technological Bonds
5.67 Cash and Cash Equivalents
3.55 Common and Preferred Stocks and Warrants
3.44 Energy and Energy-Related Bonds
1.53 U.S. Government Security
1.49 Financial Bonds
.46 Public Utilities Bonds
<PAGE>
THE INVESTMENTS OF
UNITED HIGH INCOME FUND, INC.
MARCH 31, 1994
Shares Value
COMMON AND PREFERRED STOCKS AND WARRANTS
Automotive - 0.31%
Lear Holdings Corporation, Warrants* . 7,800 $ 3,120,000
Banks and Savings and Loans - 0.08%
Riggs National Corporation, Preferred (A) 31,628 830,235
WestFed Holdings, Inc., Preferred .... 185,310 185
WestFed Holdings, Inc., Series B* .... 54,900 55
Total ............................... 830,475
Building - 1.62%
NVR L.P.* ............................ 821,126 6,158,445
NVR L.P., Warrants* (#) .............. 68,571 222,856
National Health Investors, Inc.,
Preferred, Convertible .............. 46,000 1,150,000
Triangle Pacific Corp.* .............. 660,844 8,797,155
Total ............................... 16,328,456
Hospital Management - 0.13%
LTC Properties, Inc. ................. 100,000 1,325,000
Leisure Time - 0.25%
Fitzgeralds Gaming Corporation,
Warrants (A)* ....................... 3,500 210,000
FLAGSTAR COMPANIES, INC.* ............ 34,500 336,375
Infinity Broadcasting Corporation* ... 67,500 1,721,250
SPI Holdings, Inc., Class B* ......... 48,100 252,525
Servam Corporation* .................. 373,508 3,735
Servam Corporation, Preferred* ....... 100,000 1,000
Total ............................... 2,524,885
Packaging and Containers - 0.17%
Envirodyne Industries, Inc. .......... 227,223 1,689,857
Paper - 0.12%
Stone Container Corporation* ......... 90,000 1,192,500
Public Utilities - Electric - 0.15%
Consolidated Hydro, Inc., Preferred* . 3,000 1,350,000
Consolidated Hydro, Inc., Warrants (A)* 5,400 108,000
EUA Power Corporation* ............... 9,500 10
Total ............................... 1,458,010
Publishing and Advertising - 0.35%
Advanstar Communications Inc. (B)* ... 75,625 2,420,000
Advanstar Communications Inc.,
Warrants (A)* ....................... 1,750 1,750
K-III Communications Corporation,
Series B, Preferred ................. 11,174 1,111,813
Total ............................... 3,533,563
See Notes to Schedule of Investments on page 16.
<PAGE>
THE INVESTMENTS OF
UNITED HIGH INCOME FUND, INC.
MARCH 31, 1994
Shares Value
COMMON AND PREFERRED STOCKS AND
WARRANTS (Continued)
Retailing - 0.37%
Westpoint Stevens* ................... 226,901 3,772,229
TOTAL COMMON AND PREFERRED STOCKS
AND WARRANTS - 3.55% $ 35,774,975
(Cost: $80,054,254)
Principal
Amount in
Thousands
CORPORATE DEBT SECURITIES
Airlines - 1.55%
GP Group, Inc.,
8.75%, 12-15-98 ..................... $ 9,500 7,600,000
NWA, Inc.,
8.625%, 8-1-96 ...................... 9,000 8,010,000
Total ............................... 15,610,000
Automotive - 3.71%
Auburn Hills Trust,
14.875%, 5-1-2020 ................... 14,100 20,138,748
Chrysler Corporation,
10.95%, 8-1-2017 .................... 6,000 6,977,100
Lear Siegler Seating Corp.,
8.25%, 2-1-2002 ..................... 6,500 6,012,500
Motor Wheel Corporation,
11.5%, 3-1-2000 ..................... 2,980 3,188,600
Venture Holdings Trust,
9.75%, 4-1-2004 ..................... 1,000 985,000
Total ............................... 37,301,948
Beverages - 1.26%
Dr Pepper Bottling Company of Texas:
10.25%, 2-15-2000 ................... 2,250 2,340,000
0.0%, 2-15-2003 (C) ................. 3,500 2,380,000
ROYAL CROWN CORPORATION,
9.75%, 8-1-2000 ..................... 8,000 7,920,000
Total ............................... 12,640,000
Biotechnology and Medical Services - 0.96%
Abbey Healthcare Group Incorporated,
9.5%, 11-1-2002 ..................... 2,000 1,910,000
Quorum Health Group, Inc.,
11.875%, 12-15-2002 ................. 7,000 7,770,000
Total................................ 9,680,000
See Notes to Schedule of Investments on page 16.
<PAGE>
THE INVESTMENTS OF
UNITED HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Building - 8.34%
American Standard Inc.:
9.875%, 6-1-2001 .................... $ 4,500 $ 4,320,000
14.25%, 6-30-2003 ................... 2,406 2,478,180
11.375%, 5-15-2004 .................. 2,000 2,110,000
0.0%, 6-1-2005 (C) .................. 16,000 9,680,000
9.25%, 12-1-2016 .................... 6,000 5,880,000
Beazer Homes USA, Inc.,
9.0%, 3-1-2004 ...................... 5,000 4,550,000
Del Webb Corporation:
9.75%, 3-1-2003 ..................... 6,000 5,790,000
9.0%, 2-15-2006 ..................... 2,000 1,905,000
Eagle Industries, Inc.,
0.0%, 7-15-2003 (C) ................. 11,000 6,820,000
Hillsborough Company,
17.0%, 1-1-96 (D) ................... 19,050 16,573,500
NVR L.P.,
11.0%, 4-15-2003 .................... 3,500 3,640,000
Nortek, Inc.,
9.875%, 3-1-2004 .................... 5,000 4,650,000
Toll Brothers, Inc.,
9.5%, 3-15-2003 ..................... 5,500 5,417,500
Triangle Pacific Corp.,
10.5%. 8-1-2003 ..................... 10,000 10,200,000
Total ............................... 84,014,180
Chemicals Major - 1.50%
METHANEX CORPORATION,
8.875%, 11-15-2001 .................. 3,000 2,902,500
UCC Investors Holding, Inc.:
10.5%, 5-1-2002 ..................... 9,000 9,540,000
0.0%, 5-1-2005 (C) .................. 4,000 2,640,000
Total ............................... 15,082,500
Chemicals Specialty and Miscellaneous
Technology - 1.42%
Carlisle Plastics, Inc.,
10.25%, 6-15-97 ..................... 5,500 5,665,000
Envirotest Systems Corp.,
9.125%, 3-15-2001 ................... 3,000 2,925,000
HARRIS CHEMICAL NORTH AMERICA, INC.,
0.0%, 7-15-2001 (C) ................. 6,500 5,752,500
Total ............................... 14,342,500
See Notes to Schedule of Investments on page 16.
<PAGE>
THE INVESTMENTS OF
UNITED HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Computers and Office Equipment - 0.52%
Corporate Express, Inc.,
9.625%, 3-15-2004 (A) ............... $ 2,000 $ 1,885,000
Mail-Well Corporation,
10.5%, 2-15-2004 (A) ................ 3,500 3,342,500
Total ............................... 5,227,500
Consumer Electronics and Appliances - 0.43%
Sealy Corporation,
9.5%, 5-1-2003 ...................... 4,500 4,365,000
Domestic Oil - 1.34%
Clark R & M Holdings, Inc.,
0.0%, 2-15-2000 ..................... 16,800 9,492,000
Triton Energy Corporation,
0.0%, 12-15-2000 (C) ................ 5,500 3,960,000
Total ............................... 13,452,000
Drugs and Hospital Supply - 0.72%
General Medical Corporation,
10.875%, 8-15-2003 .................. 7,000 7,210,000
Electronics - 0.39%
Essex Group, Inc.,
10.0%, 5-1-2003 ..................... 4,000 3,920,000
Financial - 0.58%
American Express Company,
6.25%, 10-15-96 ..................... 3,675 3,987,485
Gentra Inc.:
11.3%, 5-29-98 (E) .................. $C1,000 664,880
0.0%, 12-31-2001 (C)(E) ............. $C2,500 1,156,300
Total ............................... 5,808,665
Food and Related - 2.06%
General Nutrition, Incorporated,
11.375%, 3-1-2000 ................... $ 5,370 5,907,000
Pilgrim's Pride Corporation,
10.875%, 8-1-2003 ................... 3,500 3,517,500
Specialty Foods Corporation:
10.25%, 8-15-2001 ................... 4,000 4,160,000
11.25%, 8-15-2003 ................... 7,000 7,175,000
Total ............................... 20,759,500
See Notes to Schedule of Investments on page 16.
<PAGE>
THE INVESTMENTS OF
UNITED HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Hospital Management - 3.49%
American Medical International, Inc.:
11.375%, 2-1-95 ..................... $ 3,000 $ 3,180,000
13.5%, 8-15-2001 .................... 3,000 3,450,000
Hallmark Healthcare Corporation,
10.625%, 11-15-2003 ................. 3,000 3,000,000
Hillhaven Corporation (The),
10.125%, 9-1-2001 ................... 5,000 5,075,000
Multicare Companies, Inc. (The),
12.5%, 7-1-2002 ..................... 5,398 6,315,660
Pathmark:
9.625%, 5-1-2003 .................... 10,000 9,500,000
0.0%, 11-1-2003 (C) ................. 9,000 4,590,000
Total ............................... 35,110,660
Household Products - 2.81%
Exide Corporation:
10.75%, 12-15-2002 .................. 4,750 4,845,000
0.0%, 12-15-2004 (C) ................ 4,000 2,760,000
MacAndrews & Forbes Group, Incorporated:
12.25%, 7-1-96 ...................... 10,750 10,857,500
13.0%, 3-1-99 ....................... 9,750 9,774,375
Total................................ 28,236,875
Insurance - 0.91%
American Annuity Group, Inc.:
9.5%, 8-15-2001 ..................... 5,500 5,555,000
11.125%, 2-1-2003 ................... 3,500 3,640,000
Total ............................... 9,195,000
Leisure Time - 19.06%
Act III Broadcasting, Inc.,
9.625%, 12-15-2003 .................. 3,000 2,865,000
Bally's Health & Tennis Corporation,
13.0%, 1-15-2003 .................... 5,500 5,280,000
Cablevision Industries Corporation:
10.75%, 1-30-2002 ................... 8,000 8,080,000
9.25%, 4-1-2008 ..................... 5,000 4,550,000
California Hotel Finance Corporation,
11.0%, 12-1-2002 .................... 10,000 10,500,000
Century Communications Corp.,
11.875%, 10-15-2003 ................. 6,500 7,020,000
Claridge Hotel and Casino Corporation (The),
11.75%, 2-1-2002 .................... 5,000 4,750,000
Comcast Corporation:
0.0%, 3-1-2000 ...................... 9,300 5,115,000
9.5%, 1-15-2008 ..................... 8,000 7,880,000
See Notes to Schedule of Investments on page 16.
<PAGE>
THE INVESTMENTS OF
UNITED HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Leisure Time (Continued)
Continental Cablevision, Inc.:
10.625%, 6-15-2002 .................. $ 2,500 $ 2,625,000
8.875%, 9-15-2005 ................... 5,500 5,280,000
11.0%, 6-1-2007 ..................... 3,800 4,104,000
Embassy Suites, Inc.,
10.875%, 4-15-2002 .................. 2,000 2,220,000
Family Restaurants, Inc.:
9.75%, 2-1-2002 ..................... 5,000 4,625,000
0.00%, 2-1-2004 (C) ................. 5,000 3,400,000
Fitzgeralds Gaming Corporation,
13.0%, 3-15-96 (A) .................. 3,500 3,290,000
FLAGSTAR COMPANIES, INC.:
10.75%, 9-15-2001 ................... 16,500 16,335,000
10.875%, 12-1-2002 .................. 4,500 4,432,500
Foodmaker, Inc.,
9.75%, 6-1-2002 ..................... 8,500 8,372,500
Infinity Broadcasting Corporation,
10.375%, 3-15-2002 .................. 16,000 16,480,000
LaQuinta Motor Inns, Inc.,
9.25%, 5-15-2003 .................... 4,500 4,320,000
MGM Grand Hotel Finance Corp.,
12.0%, 5-1-2002 ..................... 7,000 7,910,000
NewCity Communications, Inc.,
11.375%, 11-1-2003 .................. 2,000 2,100,000
Rogers Cablesystems Limited,
9.625%, 8-1-2002 .................... 4,000 4,120,000
Rogers Communications Incorporated,
10.875%, 4-15-2004 .................. 4,500 4,725,000
Showboat, Inc.,
9.25%, 5-1-2008 ..................... 9,000 8,280,000
Sinclair Broadcast Group, Inc.,
10.0%, 12-15-2003 ................... 1,875 1,964,063
Treasure Island Finance Corp.,
9.875%, 10-1-2000 ................... 11,000 11,660,000
Trump Plaza Funding, Inc.,
10.875%, 6-15-2001 .................. 5,000 4,650,000
Turner Broadcasting System, Inc.:
12.0%, 10-15-2001 ................... 6,500 6,960,330
8.375%, 7-1-2013 .................... 5,000 4,683,700
Viacom International Inc.,
10.25%, 9-15-2001 ................... 3,000 3,285,000
Total ............................... 191,862,093
See Notes to Schedule of Investments on page 16.
<PAGE>
THE INVESTMENTS OF
UNITED HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Machinery - 0.55%
Fairfield Manufacturing Company, Inc.,
11.375%, 7-1-2001 ................... $ 4,000 $ 4,040,000
IDEX Corporation,
9.75%, 9-15-2002 .................... 1,500 1,500,000
Total ............................... 5,540,000
Metals and Mining - 0.32%
Magma Copper Company,
12.0%, 12-15-2001 ................... 2,850 3,192,000
Multi-Industry - 1.66%
Federal Industries Ltd.,
10.25%, 6-15-2000 ................... 5,500 5,472,500
Jordan Industries, Inc.,
10.375%, 8-1-2003 ................... 7,000 6,930,000
Mark IV Industries, Inc.,
8.75%, 4-1-2003 ..................... 4,500 4,320,000
Total ............................... 16,722,500
Oil Services - 1.64%
Falcon Drilling, Inc.,
9.75%, 1-15-2001 (A) ................ 3,500 3,430,000
Noble Drilling Corporation,
9.25%, 10-1-2003 .................... 4,000 3,800,000
PETROLEUM HEAT AND POWER CO., INC.
9.375%, 2-1-2006 .................... 3,000 2,955,000
Wainoco Oil Corporation,
12.0%, 8-1-2002 ..................... 6,000 6,360,000
Total ............................... 16,545,000
Packaging and Containers - 5.18%
Anchor Glass Container Corporation,
9.875%, 12-15-2008 .................. 5,000 4,800,000
Gaylord Container Corporation,
11.5%, 5-15-2001 .................... 8,000 8,080,000
Ivex Packaging Corporation,
12.5%, 12-15-2002 ................... 2,000 2,225,000
Owens-Illinois, Inc.:
10.25%, 4-1-99 ...................... 5,000 4,975,000
10.0%, 8-1-2002 ..................... 5,000 5,000,000
11.0%, 12-1-2003 .................... 7,500 8,212,500
9.75%, 8-15-2004 .................... 7,500 7,425,000
Silgan Corporation,
0.0%, 12-15-2002 (C) ................ 9,500 7,172,500
See Notes to Schedule of Investments on page 16.
<PAGE>
THE INVESTMENTS OF
UNITED HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Packaging and Containers (Continued)
Sweetheart Cup Company, Inc.,
10.5%, 9-1-2003 ..................... $ 4,250 $ 4,292,500
Total ............................... 52,182,500
Paper - 3.12%
Fort Howard Corporation:
9.25%, 3-15-2001 .................... 8,000 7,760,000
0.0%, 11-1-2004 (C) ................. 11,250 10,743,750
Stone Container Corporation,
9.875%, 2-1-2001 .................... 9,500 8,740,000
Williamhouse-Regency of Delaware, Inc.,
11.50%, 6-15-2005 ................... 4,000 4,140,000
Total ............................... 31,383,750
Propane - 0.46%
National Propane Corporation,
13.125%, 3-1-99 ..................... 4,664 4,675,660
Public Utilities - Electric - 0.46%
Calpine Corporation,
9.25%, 2-1-2004 ..................... 3,000 2,790,000
Consolidated Hydro, Inc.,
0.0%, 7-15-2003 (C) ................. 3,000 1,838,010
Total ............................... 4,628,010
Publishing and Advertising - 2.52%
Big Flower Press, Inc.,
10.75%, 8-1-2003 .................... 6,500 6,305,000
Enquirer/Star, Inc.,
10.375%, 5-15-2002 .................. 9,000 9,832,500
Lamar Advertising Company,
11.0%, 5-15-2003 .................... 2,000 1,980,000
Outdoor Systems, Inc.,
10.75%, 8-15-2003 ................... 7,000 7,210,000
Total ............................... 25,327,500
Railroads - 1.15%
Harmon Industries, Inc.,
12.0%, 8-1-2002 ..................... 3,500 3,745,000
Southern Pacific Rail Corporation,
9.375%, 8-15-2005 ................... 7,950 7,870,500
Total ............................... 11,615,500
See Notes to Schedule of Investments on page 16.
<PAGE>
THE INVESTMENTS OF
UNITED HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Retailing - 14.09%
Barnes & Noble, Inc.,
11.875%, 1-15-2003 .................. $ 6,000 $ 6,600,000
Bibb Company (The),
14.0%, 10-1-99 ...................... 5,000 5,200,000
Big V Supermarkets, Inc.,
11.0%, 2-15-2004 (A) ................ 5,000 5,075,000
Bradlees, Inc.,
9.25%, 3-1-2003 ..................... 8,000 7,440,000
COLORTILE, INC.,
10.75%, 12-15-2001 .................. 6,500 6,370,000
Eckerd (Jack) Corporation,
9.25%, 2-15-2004 .................... 5,500 5,032,500
Farm Fresh, Inc.,
12.25%, 10-1-2000 (A) ............... 3,000 3,030,000
General Host Corporation,
11.5%, 2-15-2002 .................... 4,000 4,045,000
Grand Union Company (The):
11.375%, 2-15-99 .................... 6,500 6,459,375
12.25%, 7-15-2002 ................... 7,500 7,425,000
0.0%, 7-15-2004 (C) ................. 20,000 8,400,000
Hook-SupeRx, Inc.,
10.125%, 6-1-2002 ................... 5,000 4,850,000
Kroger Co. (The):
9.75%, 2-15-2004 .................... 10,000 10,150,000
9.25%, 1-1-2005 ..................... 3,000 3,030,000
Macy (R.H.) & Co., Inc.,
14.5%, 10-15-98 (D) ................. 3,000 1,425,000
Mayfair Super Markets, Inc.,
11.75%, 3-30-2003 ................... 3,000 3,090,000
Musicland Stores Corporation,
9.0%, 6-15-2003 ..................... 4,000 3,840,000
Orchard Supply Hardware Stores Corporation,
9.375%, 2-15-2002 ................... 4,000 3,840,000
P & C Food Markets, Inc.,
11.5%, 10-15-2001 ................... 5,000 5,500,000
Penn Traffic Company:
8.625%, 12-15-2003 .................. 7,000 6,615,000
10.375%, 10-1-2004 .................. 8,500 8,670,000
9.625%, 4-15-2005 ................... 7,000 6,720,000
Safeway Inc.,
10.0%, 12-1-2001 .................... 8,000 8,320,000
Service Merchandise Company, Inc.,
9.0%, 12-15-2004 .................... 6,000 5,700,000
Specialty Retailers, Inc.,
11.0%, 8-15-2003 .................... 5,000 5,000,000
Total ............................... 141,826,875
See Notes to Schedule of Investments on page 16.
<PAGE>
THE INVESTMENTS OF
UNITED HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
CORPORATE DEBT SECURITIES (Continued)
Services, Consumer and Business - 1.05%
Bell & Howell Company,
10.75%, 10-1-2002 ................... $ 5,000 $ 5,225,000
Solon Automated Services, Inc.,
12.75%, 7-15-2001 ................... 5,000 5,350,000
Total ............................... 10,575,000
Steel - 2.05%
AK Steel, Inc.,
10.75%, 4-1-2004 .................... 5,000 4,975,000
Inland Steel Industries, Inc.,
12.75, 12-15-2002 ................... 6,000 6,690,000
Wheeling-Pittsburgh Corporation,
9.375%, 11-15-2003 .................. 9,500 8,977,500
Total ............................... 20,642,500
Telecommunications - 1.70%
CenCall Communications Corp.,
0.0%, 1-15-2004 (C) ................. 7,000 4,060,000
Dial Page, Inc.,
12.25%, 2-15-2000 ................... 1,000 1,040,000
MFS Communications Company, Inc.,
0.0%, 1-15-2004 (C) ................. 5,500 3,272,500
Rogers Cantel Mobile Communications Inc.,
10.75%, 11-1-2001 ................... 1,500 1,605,000
Summit Communications Group, Inc.,
10.5%, 4-15-2005 .................... 5,000 5,250,000
USA Mobile Communications, Inc. II,
9.5%, 2-1-2004 ...................... 2,000 1,900,000
Total ............................... 17,127,500
Textiles and Apparel - 2.01%
CMI Industries, Inc.,
9.5%, 10-1-2003 ..................... 4,500 4,140,000
CONSOLTEX GROUP INC.,
11.0%, 10-1-2003 (A) ................ 7,000 7,000,000
JPS Textile Group, Inc.:
11.75%, 6-1-96 (A) .................. 3,500 3,508,750
10.25%, 6-1-99 ...................... 5,500 5,390,000
Linter Textiles Corporation Limited,
13.75%, 10-1-2000 (D) ............... 17,200 172,000
Total ............................... 20,210,750
See Notes to Schedule of Investments on page 16.
<PAGE>
THE INVESTMENTS OF
UNITED HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
Tobacco - 0.24%
Consolidated Cigar Corporation,
10.5%, 3-1-2003 ..................... $ 2,500 $ 2,412,500
TOTAL CORPORATE DEBT SECURITIES - 89.25% $ 898,425,966
(Cost: $908,284,621)
UNITED STATES GOVERNMENT SECURITY - 1.53%
United States Treasury,
7.5%, 11-15-2016 .................... 15,000 $ 15,377,400
(Cost: $15,119,473)
TOTAL SHORT-TERM SECURITIES - 4.46% $ 44,848,513
(Cost: $44,848,513)
TOTAL INVESTMENT SECURITIES - 98.79% $ 994,426,854
(Cost: $1,048,306,861)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.21% 12,191,657
NET ASSETS - 100.00% $1,006,618,511
See Notes to Schedule of Investments on page 16.
<PAGE>
UNITED HIGH INCOME FUND, INC.
MARCH 31, 1994
Notes to Schedule of Investments
No income dividends were paid during the preceding 12 months.
(A) As of March 31, 1994, the following restricted securities were owned:
Shares/
Principal
Acquisition Amount Market
Security Date in 000's Cost Value
-------- ----------- --------------------------------
Advanstar
Communications
Inc., Warrants 3/30/92 1,750$ 0 $ 1,750
Consolidated Hydro, Inc.,
Warrants 6/15/93 5,400 127,817 108,000
Riggs National
Corporation,
Preferred Stock 10/14/93 31,628 790,700 830,235
Fitzgeralds Gaming
Corporation,
Warrants 3/8/94 3,500 173,565 210,000
Big V Supermarkets, Inc.,
11.0%, 2-15-2004 12/10/93 $5,000 5,000,000 5,075,000
CONSOLTEX GROUP INC.,
11.0%, 10/01/2003 9/23/93 7,000 7,000,000 7,000,000
Corporate Express, Inc.,
9.625%, 3-15-2004 2/22/94 2,000 2,000,000 1,885,000
Falcon Drilling, Inc.,
9.75%, 1-15-2001 1/14/94 3,500 3,500,000 3,430,000
Farm Fresh, Inc.,
12.25%, 10-1-2000 12/2/93 3,000 3,150,000 3,030,000
Fitzgeralds Gaming Corporation,
13.0%, 3-15-96 3/8/94 3,500 3,326,435 3,290,000
JPS Textile Group, Inc.,
11.75%, 6/1/96 1/18/93 3,500 3,513,125 3,508,750
Mail-Well Corporation,
10.5%, 2-15-2004 2/17/94 3,500 3,500,000 3,342,500
----------------------
$32,081,642$31,711,235
======================
The total market value of restricted securities represents approximately
3.15% of the total net assets at March 31, 1994.
<PAGE>
Notes to Schedule of Investments (Continued)
(B) Affiliate as defined by the Investment Company Act of 1940 by reason of
ownership by the Fund of 5% or more of its outstanding voting securities.
(C) The security does not bear interest for an initial period of time and
subsequently becomes interest bearing.
(D) Non-income producing as the issuer has either missed its most recent
interest payment or declared bankruptcy.
(E) Principal amounts are denominated in the indicated foreign currency where
applicable ($C - Canadian dollar).
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 HIGH INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1994
Assets
Investment securities - at value
(Notes 1 and 3) ............................... $ 994,426,854
Cash ........................................... 4,385
Receivables:
Dividends and interest ........................ 20,261,281
Investment securities sold .................... 2,240,882
Fund shares sold .............................. 1,199,656
Prepaid insurance premium ...................... 58,903
--------------
Total assets ................................ 1,018,191,961
--------------
Liabilities
Payable for investment securities purchased .... 6,667,111
Payable for Fund shares redeemed ............... 4,555,392
Accrued service fee ............................ 211,379
Accrued transfer agency and dividend
disbursing .................................... 96,087
Accrued accounting services fee ................ 8,333
Other .......................................... 35,148
--------------
Total liabilities ........................... 11,573,450
--------------
Total net assets ........................... $1,006,618,511
==============
Net Assets
$1.00 par value capital stock, authorized --
400,000,000; shares outstanding -- 109,456,849
Capital stock ................................. $ 109,456,849
Additional paid-in capital .................... 1,326,117,835
Accumulated undistributed income (loss):
Accumulated undistributed net investment income 391,499
Accumulated undistributed net realized
loss on investment transactions ............. (375,467,665)
Net unrealized depreciation in value of
investments at end of period ................ (53,880,007)
--------------
Net assets applicable to outstanding
units of capital ........................... $1,006,618,511
==============
Net asset value per share (net assets divided
by shares outstanding) ......................... $9.20
Sales load (offering price x 5.75%) .............. .56
-----
Offering price per share (net asset value
divided by 94.25%) ............................. $9.76
=====
On sales of $100,000 or more the sales load
is reduced as set forth in the Prospectus.
See notes to financial statements.
<PAGE>
UNITED HIGH INCOME FUND, INC.
STATEMENT OF OPERATIONS
For the Fiscal Year Ended MARCH 31, 1994
Investment Income
Income:
Interest ........................................ $95,541,093
Dividends ....................................... 189,801
-----------
Total income .................................. 95,730,894
-----------
Expenses (Note 2):
Investment management fee ....................... 5,853,860
Transfer agency and dividend disbursing ......... 1,256,425
Service fee ..................................... 500,977
Accounting services fee ......................... 97,500
Custodian fees .................................. 63,640
Legal fees ...................................... 58,583
Audit fees ...................................... 48,144
Other ........................................... 184,162
-----------
Total expenses ................................ 8,063,291
-----------
Net investment income ........................ 87,667,603
-----------
Realized and Unrealized Gain (Loss) on Investments
Realized net gain on investments ................. 24,824,907
Unrealized depreciation in value of
investments during the period.................... (26,914,040)
-----------
Net loss on investments ......................... (2,089,133)
-----------
Net increase in net assets resulting
from operations .............................. $85,578,470
===========
See notes to financial statements.
<PAGE>
UNITED HIGH INCOME FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the fiscal year ended
March 31,
-----------------------------
1994 1993
-------------- -------------
Increase in Net Assets
Operations:
Net investment income .......... $ 87,667,603 $ 87,527,869
Realized net gain on investments 24,824,907 20,780,446
Unrealized appreciation
(depreciation) ............... (26,914,040) 20,741,389
-------------- ------------
Net increase in net assets
resulting from operations ... 85,578,470 129,049,704
-------------- ------------
Dividends to shareholders from
net investment income* ......... (86,938,851) (88,456,960)
-------------- ------------
Capital share transactions:
Proceeds from sale of shares
(9,669,416 and 10,928,401
shares, respectively) ........ 91,334,327 97,640,295
Proceeds from reinvestment of
dividends (7,462,480 and
7,887,549 shares,
respectively) ................ 70,328,948 70,155,942
Payments for shares redeemed
(14,873,492 and 14,843,518
shares, respectively) ........ (140,551,472) (132,438,865)
-------------- ------------
Net increase in net assets
resulting from capital
share transactions .......... 21,111,803 35,357,372
-------------- ------------
Total increase .............. 19,751,422 75,950,116
Net Assets
Beginning of period ............. 986,867,089 910,916,973
-------------- ------------
End of period, including
undistributed net investment
income of $391,499 and
$872,574, respectively ......... $1,006,618,511 $986,867,089
============== ============
*See "Financial Highlights" on page 20.
See notes to financial statements.
<PAGE>
UNITED HIGH INCOME FUND, INC.
FINANCIAL HIGHLIGHTS
For a Share of Capital Stock Outstanding
Throughout Each Period:
For the fiscal year ended March 31,
-----------------------------------
1994 1993 1992 1991 1990
------ ------ ------ ------ ------
Net asset value,
beginning of period $9.21 $8.82 $7.51 $8.51 $11.63
----- ------ ------ ------ ------
Income from investment
operations:
Net investment
income .......... .80 .83 .95 1.16 1.44
Net realized and
unrealized gain
(loss) on
investments ..... (0.01) .40 1.29 (1.00) (3.08)
----- ------ ------ ------ ------
Total from investment
operations ....... .79 1.23 2.24 .16 (1.64)
----- ------ ------ ------ ------
Less dividends
declared from net
investment income . (0.80) (0.84) (0.93) (1.16) (1.48)
----- ----- ----- ----- ------
Net asset value,
end of period .... $9.20 $9.21 $8.82 $7.51 $ 8.51
===== ===== ===== ===== ======
Total return* ...... 8.69% 14.72% 31.72% 2.56%-15.57%
Net assets, end
of period (000
omitted) .........$1,006,619$986,867$910,917$735,376$874,615
Ratio of expenses to
average net assets 0.78% 0.75% 0.79% 0.82% 0.74%
Ratio of net investment
income to average
net assets ....... 8.51% 9.28% 11.56% 14.89% 13.72%
Portfolio turnover
rate ............. 54.80% 58.68% 62.12% 30.43% 52.00%
Total return calculated without taking into account the sales load deducted
on an initial purchase.
See notes to financial statements.
<PAGE>
UNITED HIGH INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1994
NOTE 1 -- Significant Accounting Policies
United High Income 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 -- 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. Restricted securities and securities for which
market quotations are not readily available are valued at fair value as
determined in good faith under procedures established by and under the
general supervision of the Fund'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. Interest income is recorded on the accrual basis. See Note
3 -- Investment Security Transactions.
C. Federal income taxes -- It is the Fund'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 Fund 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.
D. Dividends and distributions -- Dividends and distributions to shareholders
are recorded by the Fund on the record date. During the period ended March
31, 1994, the Fund adopted Statement of Position 93-2 Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. Accordingly,
permanent book and tax basis differences relating to future shareholder
distributions have been reclassified to additional paid-in capital. As of
April 1, 1993, the Fund reclassified $12,474,375 to additional paid-in
capital, comprised of $13,684,202 from accumulated undistributed net
realized gain on investment transactions and $1,209,827 from accumulated
undistributed net investment income. Net investment income, net realized
gains and net assets were not affected by this change.
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 .15% of net assets and
(ii) a "Group" fee computed each day on the combined net asset values of all of
the funds in the United Group of mutual funds (approximately $10.9 billion of
combined net assets at March 31, 1994) at annual rates of .51% of the first
$750 million of combined net assets, .49% on that amount between $750 million
and $1.5 billion, .47% between $1.5 billion and $2.25 billion, .45% between
$2.25 billion and $3 billion, .43% between $3 billion and $3.75 billion, .40%
between $3.75 billion and $7.5 billion, .38% between $7.5 billion and $12
billion, and .36% of that amount over $12 billion. The Fund accrues and pays
this fee daily.
Pursuant to assignment of the Investment Management Agreement between the
Fund and Waddell & Reed, Inc. ("W&R"), Waddell & Reed Investment Management
Company ("WRIMCO"), a wholly-owned subsidiary of W&R, serves as the Fund's
investment manager.
The Fund has an Accounting Services Agreement with Waddell & Reed Services
Company ("WARSCO"), a wholly-owned subsidiary of W&R. Under the agreement,
WARSCO acts as the agent in providing accounting services and assistance to the
Fund and pricing daily the value of shares of the Fund. For these services, the
Fund pays WARSCO a monthly fee of one-twelfth of the annual fee shown in the
following table.
Accounting Services Fee
Average
Net Asset Level Annual Fee
(all dollars in millions) Rate for Each Level
------------------------- -------------------
From $ 0 to $ 10 $ 0
From $ 10 to $ 25 $ 10,000
From $ 25 to $ 50 $ 20,000
From $ 50 to $ 100 $ 30,000
From $ 100 to $ 200 $ 40,000
From $ 200 to $ 350 $ 50,000
From $ 350 to $ 550 $ 60,000
From $ 550 to $ 750 $ 70,000
From $ 750 to $1,000 $ 85,000
$1,000 and Over $100,000
The Fund also pays WARSCO a monthly per account charge for transfer agency
and dividend disbursement services of $1.0208 for each shareholder account which
was in existence at any time during the prior month plus $0.30 for each account
on which a dividend or distribution of cash or shares had a record date in that
month. The Fund also reimburses W&R and WARSCO for certain out-of-pocket costs.
As principal underwriter for the Fund's shares, W&R received direct and
indirect gross sales commissions (which are not an expense of the Fund) of
$3,306,458, out of which W&R paid sales commissions of $1,862,765 and all
expenses in connection with the sale of Fund shares, except for registration
fees and related expenses.
On September 28, 1993, shareholders of the Fund approved the adoption of a
12b-1 Service Plan with a maximum fee of .25%. The Plan went into effect
October 1, 1993.
The Fund paid Directors' fees of $39,128.
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 obligations
and short-term securities, aggregated $545,539,137 while proceeds from
maturities and sales aggregated $491,349,006. Purchases of short-term
securities and U.S. Government securities aggregated $642,250,817 and
$10,556,250, respectively, while proceeds from maturities and sales of short-
term securities and U.S. Government securities aggregated $642,080,324 and
$37,903,906, respectively. There was a gain of $2,546,728 on the sale of U.S.
Government securities. There was no gain or loss on the sale of short-term
securities.
For Federal income tax purposes, cost of investments owned at March 31,
1994 was $1,047,315,315 resulting in net unrealized depreciation of $52,888,461,
of which $32,976,720 related to appreciated securities and $85,865,181 related
to depreciated securities.
NOTE 4 -- Federal Income Tax Matters
For Federal income tax purposes, the Fund realized capital gain net income
of $24,824,907 during its fiscal year ended March 31, 1994, which was entirely
offset by utilization of capital loss carryovers. Remaining prior year capital
loss carryovers aggregated $376,459,212 at March 31, 1994. This amount is
available to offset future realized capital gain net income for Federal income
tax purposes through March 31, 1997; $307,279,830 of this amount is available
through March 31, 1998; $285,694,573 is available through March 31, 1999; and
$114,024,403 is available through March 31, 2000.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
United High Income 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 High Income Fund, Inc. (the
"Fund") at March 31, 1994, the results of its operations for the year then ended
and the changes in its net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at March
31, 1994 by correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE
Kansas City, Missouri
April 29, 1994
- -----------------------------------------------------------------
<PAGE>
INCOME TAX INFORMATION
The amounts of the dividends below, multiplied by the number of shares owned by
you on the record dates, will give you the total amounts to be reported in your
Federal income tax return for the years in which the dividends were received or
reinvested.
PER-SHARE AMOUNTS REPORTABLE AS:
-----------------------------------------------
For Individuals For Corporations
----------------- -----------------------------
Record Ordinary Long-Term Non- Long-Term
Date Total IncomeCapital GainQualifyingQualifyingCapital Gain
- --------- ----- ---------------------------------------------------
04-16-93$0.0670 $0.0670 $0.0000 $0.0002 $0.0668 $0.0000
05-14-93 0.0670 0.0670 0.0000 0.0001 0.0669 0.0000
06-11-93 0.0670 0.0670 0.0000 0.0001 0.0669 0.0000
07-16-93 0.0670 0.0670 0.0000 0.0001 0.0669 0.0000
08-13-93 0.0670 0.0670 0.0000 0.0001 0.0669 0.0000
09-17-93 0.0670 0.0670 0.0000 0.0001 0.0669 0.0000
10-15-93 0.0670 0.0670 0.0000 0.0001 0.0669 0.0000
11-12-93 0.0660 0.0660 0.0000 0.0001 0.0659 0.0000
12-17-93 0.0660 0.0660 0.0000 0.0001 0.0659 0.0000
01-14-94 0.0660 0.0660 0.0000 0.0003 0.0657 0.0000
02-11-94 0.0660 0.0660 0.0000 0.0003 0.0657 0.0000
03-11-94 0.0660 0.0660 0.0000 0.0003 0.0657 0.0000
------- ------- ------- ------- ------- -------
Total $0.7990 $0.7990 $0.0000 $0.0019 $0.7971 $0.0000
======= ======= ======= ======= ======= =======
CORPORATION DEDUCTIONS -- Under Federal tax law, the amounts reportable as
Qualifying Dividends are eligible for the dividends received deduction in the
year received as provided by Section 243 of the Internal Revenue Code.
The tax status of dividends paid will be reported to you on Form 1099-DIV after
the close of the applicable calendar year.
Shareholders are advised to consult with their tax adviser concerning the tax
treatment of dividends and distributions from the Fund.
<PAGE>
DIRECTORS
Ronald K. Richey, Birmingham, Alabama, Chairman of the Board
Henry L. Bellmon, Red Rock, Oklahoma
Dodds I. Buchanan, Boulder, Colorado
Jay B. Dillingham, Kansas City, Missouri
John F. Hayes, Hutchinson, Kansas
Glendon E. Johnson, Miami, Florida
William T. Morgan, Los Angeles, California
Doyle Patterson, Kansas City, Missouri
Keith A. Tucker, Overland Park, Kansas
Frederick Vogel, III, Milwaukee, Wisconsin
Paul S. Wise, Carefree, Arizona
Leslie S. Wright, Birmingham, Alabama
OFFICERS
Keith A. Tucker, President
Robert L. Hechler, Vice President
Henry J. Herrmann, Vice President
John M. Holliday, Vice President
Theodore W. Howard, Vice President and Treasurer
Rodney O. McWhinney, Vice President
Sharon K. Pappas, Vice President and Secretary
Louise D. Rieke, Vice President
Carl E. Sturgeon, Vice President
This report is submitted for the general information of the shareholders of
United High Income Fund, Inc. It is not authorized for distribution to
prospective investors in the Fund unless accompanied with or preceded by the
United High Income Fund, Inc. current prospectus.
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>
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
NUR1009A(3-94)
printed on recycled paper
