United
Municipal
High Income
Fund, Inc.
SEMIANNUAL
REPORT
---------------------------------------
For the six months ended March 31, 1994
<PAGE>
This report is submitted for the general information of the shareholders of
United Municipal High Income Fund, Inc. It is not authorized for distribution
to prospective investors in the Fund unless accompanied with or preceded by the
United Municipal High Income Fund, Inc. current prospectus.
<PAGE>
PRESIDENT'S LETTER
- -----------------------------------------------------------------
MARCH 31, 1994
Dear Shareholder:
This report covers the investment performance of your Fund for the six
months ended March 31, 1994.
During the past six months, bond and equity markets have experienced
considerable fluctuations due to increases in interest rates and other economic
developments. These markets will continue to react to events that affect the
economy such as actions on health care proposals and many other issues.
We are hoping to see improved economies throughout the world over the next
year. We believe this would contribute to a favorable outlook for U.S. and
foreign securities.
Regardless of the rise and decline of markets, we will continue to use the
strengths and abilities we have developed over the past 55 years. These
include:
Professional portfolio management-- As investment professionals, we pay
careful attention to economic trends; we understand the business of each company
in which we invest; and we have the ability to judge the management of such
companies as they adapt to changes in the industries and markets they serve.
A widely diversified approach-- Our extensive experience managing a variety
of securities allows us to see the whole "investment pie." We use this broad
view to consider every investment opportunity available that meets your Fund's
objectives, and to take advantage of these opportunities in an effort to achieve
maximum return.
These are just two of the many attributes that we bring to the table when
making investment decisions. We believe your Fund is designed appropriately to
meet its investment objectives, and can reward the long-term investor. We never
forget that we are managing your money.
The following is a comprehensive look at your Fund's recent performance.
We believe you will find that the information continues to reflect our aim of
meeting the stated objectives of your Fund.
Respectfully,
Keith A. Tucker
President
<PAGE>
SHAREHOLDER SUMMARY
- --------------------------------------------------------------
United Municipal High Income Fund, Inc.
PORTFOLIO STRATEGY:
Ordinarily, at least 75% OBJECTIVE: High level of income
medium and lower rated which is generally not
Municipal Bonds subject to Federal income tax. (Income
may be
Generally less than 20% subject to state and
Taxable Debt Securities local taxes and a portion may be subject
to Federal
No more than 25% in taxes, including
industrial revenue alternative minimum tax.)
bonds of any one industry
STRATEGY: Invests primarily in tax-exempt bonds of
the medium- and lower-rated categories
as classified by recognized rating
agencies.
FOUNDED: 1986
DIVIDENDS: PAID MONTHLY
<PAGE>
PERFORMANCE SUMMARY
PER SHARE DATA
For the Six Months Ended March 31, 1994
- ---------------------------------------
DIVIDENDS PAID $0.17
=====
CAPITAL GAINS DISTRIBUTION $0.07
=====
NET ASSET VALUE ON
3/31/94 $5.17 adjusted to: $5.24(A)
9/30/93 5.53
-----
CHANGE PER SHARE $(.29)
=====
(A) This number includes the capital gains distribution of $0.07 paid in
December 1993 added to the actual net asset value on March 31, 1994.
Past performance is not necessarily indicative of future results.
TOTAL RETURN HISTORY
Average Annual Total Return
---------------------------
With Without
Period Sales Load** Sales Load***
- ------ ------------ -------------
1-year period ended 3-31-94 0.47% 4.93%
5-year period ended 3-31-94 8.53% 9.47%
Period from 1-21-86*
through 3-31-94 8.26% 8.84%
Initial public offering of the Fund.
Performance data quoted represents past performance and is based on deduction of
4.25% sales load on the initial purchase in each of the three periods.
Performance data quoted in this column represents past performance without
taking into account the sales load deducted on an initial purchase.
Investment return and principal value will fluctuate and an investor's shares,
when redeemed, may be worth more or less than their original cost.
<PAGE>
PORTFOLIO HIGHLIGHTS
On March 31, 1994, United Municipal High Income Fund, Inc. had net assets
totaling $335,277,296 invested in a diversified portfolio.
As a shareholder in United Municipal High Income Fund, Inc., for every $100 you
had invested on March 31, 1994, your Fund owned:
$19.57 Life Care/Nursing Center Revenue Bonds
16.92 Other Municipal Bonds
16.07 Hospital Revenue Bonds
10.26 Industrial Development Revenue Bonds
7.17 Airport Revenue Bonds
7.13 Water and Sewer Revenue Bonds
4.54 General Obligation Bonds
4.19 Housing Revenue Bonds
3.16 Adjustable Rate Bonds
2.96 Electric Utility Revenue Bonds
2.81 Resource Recovery Bonds
2.66 Cash and Cash Equivalents
2.56 Education Revenue Bonds
1994 TAX YEAR TAXABLE EQUIVALENT YIELDS*
- -----------------------------------------------------------------
If your Taxable Income is:
Your
Marginal Equivalent Tax Free Yields
Joint Single Tax ----------------------
Return Return Bracket Is 6% 7% 8% 9%
- -----------------------------------------------------------------
$ 0- 38,000$ 0- 22,750 15% 7.06 8.24 9.41 10.59
$ 38,001- 91,850$ 22,751- 55,100 28% 8.33 9.72 11.11 12.50
$ 91,851-140,000$ 55,101-115,000 31% 8.70 10.14 11.59 13.04
$140,001-250,000$115,001-250,000 36% 9.38 10.94 12.50 14.06
$250,001 and above$250,001 and above 39.6% 9.93 11.59 13.25 14.90
Above table is for illustration only and does not represent the actual
performance of United Municipal High Income Fund, Inc.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS
ALABAMA - 2.13%
The Medical Clinic Board of the City of
Birmingham-North, Revenue Bonds, Series
1991-A (Carraway Methodist Hospitals Project),
7.5%, 7-1-2015 ........................ $ 2,000 $ 2,065,000
Shelby County, Alabama, Sewer Revenue
Warrants, Series 1988-A,
7.0%, 9-1-2010 ........................ 1,935 1,935,000
The Colbert County-Northwest Alabama Health
Care Authority, Hospital Revenue Bonds,
Helen Keller Hospital, Series 1990,
8.75%, 6-1-2009 ....................... 1,000 1,106,250
The Medical Clinic Board of the City of Ozark,
Alabama, First Mortgage Revenue Bonds (United
States Health & Housing Foundation, Inc.
Project), Series 1988-A,
10.0%, 10-1-2015 ...................... 1,000 1,055,000
The Marshall County Health Care Authority,
Hospital Revenue Refunding Bonds,
Series 1992 (Guntersville-Arab
Medical Center),
7.0%, 10-1-2013 ....................... 1,000 992,500
Total ................................. 7,153,750
ALASKA - 1.24%
Alaska Industrial Development and Export
Authority, Refunding Revenue Bonds, Series
1989 (American President Lines Project),
8.0%, 11-1-2009 ....................... 2,500 2,650,000
Anchorage Parking Authority, Lease Revenue
Refunding Bonds, Series 1993 (5th Avenue
Garage Project),
6.75%, 12-1-2008 ...................... 1,500 1,501,875
Total ................................. 4,151,875
ARIZONA - 1.88%
The Industrial Development Authority of
the City of Tempe, Arizona, Friendship
Village of Tempe Refunding Revenue Bonds,
Series 1993A,
6.75%, 12-1-2013 ...................... 2,000 1,847,500
Hayden-Winkelman Unified School District
No. 41 of Gila County, Arizona, School
Improvement Bonds, Project of 1992
(Series A),
8.7%, 7-1-2011 ........................ 1,675 1,785,969
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
ARIZONA (Continued)
The Industrial Development Authorities of
the City of Tucson, Arizona, and the
County of Pima, Subordinated Mortgage
Revenue Bonds, Series 1983B,
0.0%, 12-1-2016 ....................... $ 7,215 $ 1,749,638
Student Loan Acquisition Authority of
Arizona (A nonprofit corporation organized
pursuant to the laws of the State of
Arizona), Student Loan Revenue Bonds,
Senior Series 1993A-1,
2.45%, 12-1-2004 ...................... 905 905,000
Total ................................. 6,288,107
ARKANSAS - 1.04%
Baxter County, Arkansas, Industrial
Development Revenue Refunding Bonds
(Aeroquip Corporation Project),
Series 1993,
5.8%, 10-1-2013 ....................... 2,000 1,782,500
The Fayetteville Public Facilities Board,
Refunding and Improvement Revenue Bonds,
Series 1989A (Butterfield Trail Village
Project),
9.5%, 9-1-2014 ........................ 1,600 1,714,000
Total ................................. 3,496,500
CALIFORNIA - 3.27%
San Joaquin Hills Transportation Corridor
Agency (Orange County, California):
Junior Lien Toll Road Revenue Bonds,
0.0%, 1-1-2002 ........................ 2,755 1,591,013
Senior Lien Toll Road Revenue Bonds,
0.0%, 1-1-2011 ........................ 2,500 1,403,125
Series A of 1992, Special Tax Bonds of
Community Facilities District No. 88-1
of the County of Orange (Aliso Viejo),
7.35%, 8-15-2018 ...................... 2,000 2,155,000
Certificates of Participation (1991 Capital
Improvement Project), Bella Vista Water
District (California),
7.375%, 10-1-2017 ..................... 1,500 1,556,250
Carson Redevelopment Agency (California),
Redevelopment Project Area No. 2,
Refunding Tax Allocation Bonds,
Series 1993,
6.0%, 10-1-2016 ....................... 1,500 1,316,250
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
CALIFORNIA (Continued)
Huntington Beach Public Financing Authority
(Orange County, California), 1992 Revenue
Bonds (Huntington Beach Redevelopment
Projects),
7.0%, 8-1-2024 ........................ $ 1,000 $ 1,011,250
Central Valley Financing Authority,
Cogeneration Project Revenue Bonds
(Carson Ice-Gen Project), 1993 Series,
6.1%, 7-1-2013 ........................ 1,000 925,000
Inglewood Public Financing Authority,
1992 Revenue Bonds, Series C (In-Town,
Manchester-Prairie and North Inglewood
Industrial Park Redevelopment Projects-
Housing Set-Aside Loans),
7.0%, 5-1-2022 ........................ 910 922,513
Madera-Chowchilla Power Authority, California,
Floating Rate Bond,
2.7%, 9-1-2009 ........................ 95 95,000
Total ................................. 10,975,401
COLORADO - 7.67%
City and County of Denver, Colorado,
Airport System Revenue Bonds:
Series 1991A,
8.75%, 11-15-2023 ..................... 3,000 3,341,250
Series 1991D,
7.75%, 11-15-2013 ..................... 3,000 3,187,500
Colorado Health Facilities Authority:
Hospital Revenue Bonds (PSL Healthcare
System Project), Series 1991B,
8.5%, 2-15-2021 ....................... 3,000 3,285,000
Retirement Housing Revenue Bonds (Liberty
Heights Project), 1990 Series A Term Bonds,
10.0%, 7-1-2019 (A) ................... 1,500 975,000
City of Colorado Springs, Colorado,
Airport System Revenue Bonds, Series 1992A,
7.0%, 1-1-2022 ........................ 2,200 2,227,500
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
COLORADO (Continued)
City of Central, Gilpin County, Colorado:
General Obligation Water Bonds,
Series 1992,
7.5%, 12-1-2012 ....................... $ 1,500 $ 1,518,750
Water Revenue Bonds, Series 1991,
8.625%, 9-15-2011 ..................... 500 514,375
Town of Snowmass Village, Colorado,
Multifamily Housing Refunding Revenue
Bonds, Series 1992A,
8.0%, 9-1-2014 ........................ 2,000 2,022,500
Brush Creek Village Water District, Pitkin
County, Colorado, General Obligation
Water Bonds, Series 1990,
8.875%, 11-15-2009 .................... 1,500 1,633,125
Pitkin County, Colorado, Lease Purchase
Agreement, Certificates of Participation
(County Administration Building Project),
Series 1991,
7.4%, 10-1-2011 ....................... 1,500 1,575,000
Mountain Village Metropolitan District, San
Miguel County, Colorado, General
Obligation Refunding Bonds, Series 1992,
8.1%, 12-1-2011 ....................... 1,435 1,553,388
Columbia Metropolitan District, Arapahoe
County, Colorado, General Obligation Bonds,
Series 1986,
9.5%, 12-1-2005 ....................... 1,165 1,186,844
Arapahoe Water and Sanitation District,
Arapahoe County, Colorado, General
Obligation Refunding Bonds, Series 1988B,
9.25%, 12-1-2013 ...................... 1,000 1,015,000
School District No. 20, El Paso County,
Colorado, General Obligation Refunding
Bonds, Series 1993A, Capital
Appreciation Bonds,
0.0%, 6-15-2008 ....................... 2,600 1,001,000
Dove Valley Metropolitan District, Arapahoe
County, Colorado, General Obligation
Refunding and Improvement Bonds,
Series 1988,
9.5%, 12-1-2008 ....................... 650 669,500
Total ................................. 25,705,732
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
CONNECTICUT - 1.28%
Connecticut Development Authority, First
Mortgage Gross Revenue Health Care
Project Bonds, Church Homes, Inc.:
Congregational Avery Heights Project -
1990 Series,
9.0%, 4-1-2020 ........................ $ 2,500 $ 2,721,875
Congregational Avery Nursing Facilities
Project - 1991 Series,
8.5%, 4-1-2021 ........................ 1,490 1,573,813
Total ................................. 4,295,688
DISTRICT OF COLUMBIA - 0.63%
District of Columbia Revenue Bonds
(National Public Radio Issue),
Series 1992,
7.625%, 1-1-2013 ...................... 2,000 2,120,000
FLORIDA - 1.55%
Highlands County (Florida), Industrial
Development Authority, Industrial
Development Revenue Refunding Bonds
(Beverly Enterprises - Florida, Inc.
Project), Series 1991,
9.25%, 7-1-2007 ....................... 1,500 1,680,000
City of Fort Walton Beach, First Mortgage
Industrial Development Revenue Bonds,
Series 1986 (Ft. Walton Beach Ventures,
Inc. Project),
10.5%, 12-1-2016 ...................... 1,350 1,412,438
City of Winter Garden, Florida, Industrial
Development Revenue Refunding Bonds
(Beverly Enterprises-Florida, Inc. Project),
Series 1991,
8.75%, 7-1-2012 ....................... 1,000 1,098,750
The Lee County (Florida) Industrial
Development Authority, Economic Development
Revenue Refunding Bonds (Encore Nursing
Center Partners, Ltd.-85 Project),
Series 1992,
8.125%, 12-1-2007 ..................... 950 999,875
Total ................................. 5,191,063
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
GEORGIA - 1.31%
Hospital Authority of Savannah, Revenue
Refunding and Improvement Bonds
(Candler Hospital), Series 1992:
7.0%, 1-1-2011 ........................ $ 1,680 $ 1,646,400
7.0%, 1-1-2023 ........................ 1,250 1,203,125
City of Atlanta, Special Purpose Facilities
Revenue Bonds, Series 1989B (Delta Air
Lines, Inc. Project),
7.9%, 12-1-2018 ....................... 1,500 1,546,875
Total ................................. 4,396,400
GUAM - 0.89%
Guam Airport Authority, General Revenue
Bonds, 1993 Series B,
6.6%, 10-1-2010 ....................... 3,000 2,981,250
IDAHO - 0.64%
Idaho Health Facilities Authority, Hospital
Revenue Refunding Bonds, Series 1992
(IHC Hospitals, Inc.), Indexed Inverse
Floating Rate Securities,
9.66%, 2-15-2021 ...................... 2,000 2,150,000
ILLINOIS - 5.62%
City of Hillsboro, Montgomery County,
Illinois, General Obligation Bonds
(Alternate Revenue Source), Series 1991,
7.5%, 12-1-2021 ....................... 2,640 2,748,900
Illinois Health Facilities Authority,
Revenue Bonds, Series 1992A
(Fairview Obligated Group Project),
8.75%, 10-1-2002 ...................... 2,500 2,631,250
Illinois Development Finance Authority
Revenue Bonds, Series 1993C (Catholic
Charities Housing Development
Corporation Project),
6.1%, 1-1-2020 ........................ 2,500 2,346,875
Village of Hanover Park, Cook and DuPage
Counties, Illinois, First Mortgage
Revenue Bonds, Series 1989 (Windsor
Park Manor Project),
9.5%, 12-1-2014 ....................... 2,000 2,075,000
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
ILLINOIS (Continued)
City of Quincy, Adams County, Illinois,
Revenue Bonds, Series 1993
(Blessing Hospital),
6.0%, 11-15-2018 ...................... $ 2,250 $ 2,027,813
Village of Lansing, Illinois, Landings
Redevelopment Project Area, Tax Increment
Refunding Revenue Bonds (Limited Sales
Tax Pledge), Series 1992,
7.0%, 12-1-2008 ....................... 2,000 1,965,000
City of Blue Island, Cook County, Illinois,
Golf Course Revenue Bonds (Utility Tax
Pledge), Series 1992,
7.375%, 5-1-2014 ...................... 2,000 1,962,500
Village of Bourbonnais, Kankakee County,
Illinois, Sewerage Revenue Bonds,
Series 1993,
7.25%, 12-1-2012 ...................... 1,085 1,072,794
City of Loves Park, Illinois, First Mortgage
Revenue Bonds, Series 1989A (Hoosier Care,
Inc. Project),
9.75%, 8-1-2019 ....................... 1,025 1,053,188
City of Eureka, Woodford County, Illinois,
General Obligation Refunding Bonds
(Alternate Revenue Source), Series 1993,
6.25%, 7-1-2013 ....................... 1,000 971,250
Total ................................. 18,854,570
INDIANA - 1.85%
City of East Chicago, Indiana,
Pollution Control:
Refunding Revenue Bonds, Inland
Steel Company Project No. 10,
Series 1993,
6.8%, 6-1-2013 ........................ 2,000 1,995,000
Revenue Bonds, Inland Steel
Company Project No. 5,
Series 1977,
5.75%, 2-1-2007 ....................... 1,000 932,500
City of Carmel, Indiana, Retirement Rental
Housing Revenue Refunding Bonds (Beverly
Enterprises - Indiana, Inc. Project),
Series 1992,
8.75%, 12-1-2008 ...................... 1,500 1,651,875
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
INDIANA (Continued)
Indiana Health Facility Financing
Authority, Hospital Revenue Bonds,
Series 1992 (Fayette Memorial Hospital
Project),
7.2%, 10-1-2022 ....................... $ 1,000 $ 1,011,250
Indiana Housing Finance Authority, Residential
Mortgage Bonds, 1988 Series R-A,
0.0%, 1-1-2013 ........................ 3,015 621,844
Total ................................. 6,212,469
IOWA - 0.40%
City of Ottumwa, Iowa, Hospital Facility
Revenue Refunding and Improvement Bonds,
Series 1993 (Ottumwa Regional Health
Center, Incorporated),
6.0%, 10-1-2018 ....................... 1,550 1,348,500
KANSAS - 2.61%
Kansas Development Finance Authority,
Community Provider Loan Program (Community
Living Opportunities, Inc.), Series
1992A Revenue Bonds,
8.875%, 9-1-2011 ...................... 2,790 2,932,988
Baldwin City, Kansas, Educational Facilities
Revenue Bonds (Baker University Project),
Series 1988,
9.5%, 10-1-2008 ....................... 2,000 2,130,000
City of Prairie Village, Kansas, Claridge
Court Project Revenue Bonds, Series 1993A:
8.5%, 8-15-2004 ....................... 1,000 962,500
8.75%, 8-15-2023 ...................... 1,000 953,750
Johnson County Park and Recreation District,
Johnson County, Kansas, Park and Recreation
Revenue Bonds, Series 1994A,
6.5%, 1-1-2019 ........................ 1,855 1,783,119
Total ................................. 8,762,357
KENTUCKY - 0.31%
County of Jefferson, Kentucky, Health
Facilities Revenue Refunding Bonds
(Beverly Enterprises Project),
Series 1985B,
9.75%, 8-1-2007 ....................... 930 1,048,575
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
LOUISIANA - 2.61%
Parish of St. Charles, State of Louisiana,
Pollution Control Revenue Bonds:
Union Carbide Project,
Series 1992,
7.35%, 11-1-2022 ...................... $ 2,000 $ 2,085,000
Louisiana Power & Light Company Project,
Series 1991,
7.5%, 6-1-2021 ........................ 1,750 1,839,688
Board of Commissioners of the Port of New
Orleans, Industrial Development Revenue
Refunding Bonds (Continental Grain Company
Project), Series 1993,
7.5%, 7-1-2013 ........................ 2,000 1,990,000
Parish of West Feliciana, State of Louisiana,
Pollution Control Revenue Bonds (Gulf
States Utilities Company Project),
Series 1984-II,
7.7%, 12-1-2014 ....................... 1,500 1,631,250
LaFourche Parish Home Mortgage Authority,
Tax-Exempt Capital Appreciation Refunding
Bonds, Series 1990-B, Class B-2,
0.0%, 5-20-2014 ....................... 3,300 680,625
Parish of Pointe Coupee, Louisiana,
Pollution Control Revenue Refunding Bonds
(Gulf States Utilities Company Project),
Series 1993,
6.7%, 3-1-2013 ........................ 500 503,125
Total ................................. 8,729,688
MASSACHUSETTS - 3.05%
Massachusetts Industrial Finance Agency:
Resource Recovery Revenue Bonds (SEMASS
Project), Series 1991B,
9.25%, 7-1-2015 ....................... 3,000 3,390,000
First Mortgage Revenue Bonds, Reeds
Landing Project, Series 1993,
8.625%, 10-1-2023 ..................... 3,000 2,883,750
Revenue Bonds, Beaver Country Day School
Issue, Series 1992, Subseries A,
8.1%, 3-1-2008 ........................ 1,665 1,629,619
Industrial Development Revenue Refunding
Bonds (Beverly Enterprises-Mass./Gloucester
and Lexington Projects), Series 1992,
8.375%, 5-1-2009 ...................... 500 536,875
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MASSACHUSETTS (Continued)
City of Lynn, Massachusetts, General
Obligation Bonds,
7.85%, 1-15-2011....................... $ 1,500 $ 1,781,250
Total ................................. 10,221,494
MICHIGAN - 3.40%
Pontiac Hospital Finance Authority,
Hospital Revenue Bonds (NOMC Obligated
Group), Series 1993,
6.0%, 8-1-2023 ........................ 3,000 2,595,000
Michigan State Hospital Finance Authority,
Hospital Revenue Refunding Bonds
(Crittenton Hospital), Series 1994A,
5.25%, 3-1-2014 ....................... 3,000 2,542,500
Michigan Strategic Fund, Limited Obligation
Revenue Bonds:
Mercy Services for Aging Project, Series 1990,
9.4%, 5-15-2020 ....................... 995 1,073,356
Knollwood Corporation Project, Series A,
10.5%, 10-1-2016 (B) .................. 1,300 1,040,000
Portage Lake Water and Sewage Authority,
Houghton County, Michigan, General
Obligation Limited Tax Bonds:
Series II,
7.625%, 10-1-2020 ..................... 1,000 1,051,250
Series III,
7.75%, 10-1-2020 ...................... 1,000 1,043,750
The Economic Development Corporation of
the Charter Township of Waterford
(Michigan), Limited Obligation Revenue
Bonds, Series 1993 (Canterbury Health
Care, Inc. Project),
8.375%, 7-1-2023 ...................... 2,000 2,052,500
Total ................................. 11,398,356
MINNESOTA - 1.38%
City of St. Anthony, Minnesota, Housing
Development Refunding Revenue Bonds
(Autumn Woods Project), Series 1992,
6.875%, 7-1-2022 ...................... 2,500 2,521,875
City of Mounds View, Minnesota, Gross
Revenue Golf Course Bonds, Series 1994A,
6.125%, 1-1-2014 ...................... 1,250 1,175,000
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MINNESOTA (Continued)
Housing and Redevelopment Authority of the
City of Saint Paul, Minnesota, Nursing Home
Development Revenue Bonds, Series 1988
(St. Mary's Home Project),
10.0%, 12-1-2018 ...................... $ 880 $ 917,400
Total ................................. 4,614,275
MISSISSIPPI - 1.02%
Lowndes County, Mississippi, Solid Waste
Disposal and Pollution Control Refunding
Revenue Bonds (Weyerhaeuser Company
Project), Series 1992B, Indexed Inverse
Floating/Fixed Term Bonds,
9.66%, 4-1-2022 ....................... 2,000 2,145,000
Adams County, Mississippi, Hospital Revenue
Bonds, Series 1991 (Jefferson Davis Memorial
Hospital Project),
8.0%, 10-1-2016 ....................... 1,200 1,275,000
Total ................................. 3,420,000
MISSOURI - 7.56%
Bi-State Development Agency of the Missouri-
Illinois Metropolitan District, Adjustable
Rate Terminal Facilities, Revenue Refunding
Bonds (American Commercial Terminals, Inc.
Project), Series 1985,
7.75%, 6-1-2010 ....................... 3,000 3,243,750
The Industrial Development Authority of the
City of Hannibal, Missouri, Health
Facilities Revenue Bonds (Hannibal
Regional Healthcare System - Medical
Center of Northeast Missouri Project),
Series 1992,
9.5%, 3-1-2022 ........................ 2,500 2,934,375
State Environmental Improvement and Energy
Resources Authority (State of Missouri),
Water Facilities Revenue Bonds
(Tri-County Water Authority Project),
Series 1992,
8.75%, 4-1-2022 ....................... 3,000 2,925,000
The Industrial Development Authority of the
County of Jackson, State of Missouri,
Health Care System Revenue Bonds, Saint
Joseph Health Center Issue, Series 1992,
6.5%, 7-1-2012 ........................ 3,000 2,887,500
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MISSOURI (Continued)
Regional Convention and Sports Complex
Authority, Convention and Sports Facility
Project Bonds, Series C 1991 (The City of
St. Louis, Missouri, Sponsor):
7.9%, 8-15-2021 ....................... $ 1,500 $ 1,576,875
7.75%, 8-15-2001 ...................... 1,190 1,262,888
The Industrial Development Authority of the
City of Springfield, Missouri:
Industrial Development Refunding Revenue
Bonds (Health Care Realty of Springfield,
Ltd. Project), Series 1988,
10.25%, 12-1-2010 ..................... 1,255 1,316,181
Dormitory Refunding Revenue Bonds, Series
1994 (Evangel College Project),
6.375%, 3-1-2011 ..................... 1,000 940,000
The City of Lake Saint Louis, Missouri,
Public Facilities Authority, Certificates
of Participation (Municipal Golf Course
Project), Series 1993,
7.55%, 12-1-2014 ...................... 2,000 1,912,500
The Industrial Development Authority of
the City of St. Louis, Missouri,
Industrial Revenue Refunding Bonds
(Kiel Center Multipurpose Arena Project),
Series 1992,
7.75%, 12-1-2013 ...................... 1,500 1,531,875
The Industrial Development Authority
of the City of Lee's Summit, Missouri,
Health Facilities Refunding and
Improvement Revenue Bonds (John Knox
Village Project), Series 1992,
7.125%, 8-15-2012 ..................... 1,500 1,526,250
Citizens Memorial Hospital District of
Polk County, Missouri, Hospital
Refunding and Improvement Revenue Bonds,
Series 1993,
6.5%, 8-1-2012 ........................ 1,500 1,393,125
East Central Missouri Water and Sewer
Authority, St. Charles County, Missouri,
Water System Refunding Revenue Bonds,
Series 1992 (St. Charles County Public
Water Supply District No. 2 Project),
7.0%, 8-1-2011 ........................ 1,000 1,001,250
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MISSOURI (Continued)
The Industrial Development Authority of
Callaway County, Missouri, Industrial
Development Revenue Bonds (A.P. Green
Refractories Co. Project), Series 1984,
8.6%, 11-1-2014 ....................... $ 900 $ 901,125
Total ................................. 25,352,694
MONTANA - 1.33%
Montana Board of Investments, Resource Recovery
Revenue Bonds, Series 1993 (Yellowstone Energy
Limited Partnership Project),
7.0%, 12-31-2019 ...................... 3,000 2,921,250
City of Billings, Montana, Tax Increment
Urban Renewal Bonds, Refunding Series 1992,
7.1%, 3-1-2008 ........................ 1,500 1,518,750
Total ................................. 4,440,000
NEVADA - 1.74%
Clark County, Nevada:
Industrial Development Revenue Bonds
(Southwest Gas Corporation):
1993 Series A,
6.5%, 12-1-2033 ....................... 3,000 2,718,750
1992 Series B,
7.5%, 9-1-2032 ........................ 1,000 1,031,250
Industrial Development Refunding Revenue Bonds
(Nevada Power Company Project), Series 1992C,
7.2%, 10-1-2022 ....................... 2,000 2,067,500
Total ................................. 5,817,500
NEW HAMPSHIRE - 4.16%
New Hampshire Higher Educational and Health
Facilities Authority:
Hospital Revenue Bonds, Catholic Medical
Center Issue, Series 1989,
8.25%, 7-1-2013 ....................... 2,000 2,142,500
First Mortgage Revenue Bonds, RiverWoods
at Exeter Issue, Series 1993,
9.0%, 3-1-2023 ........................ 2,000 2,105,000
Revenue Bonds, New Hampshire Catholic
Charities Issue, Series 1991,
8.4%, 8-1-2011 ........................ 1,700 1,806,250
Hospital Revenue Bonds, Monadnock
Community Hospital Issue, Series 1990,
9.125%, 10-1-2020 ..................... 1,485 1,622,363
Hospital Revenue Bonds, St. Joseph Hospital
Issue, Series 1991,
7.5%, 1-1-2016 ........................ 1,000 1,042,500
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW HAMPSHIRE (Continued)
The Industrial Development Authority of the
State of New Hampshire, Pollution Control
Revenue Bonds, Public Service Company of
New Hampshire Project:
1991 Tax-Exempt Series A,
7.65%, 5-1-2021 ....................... $ 2,000 $ 2,077,500
1991 Tax-Exempt Series C,
7.65%, 5-1-2021 ....................... 2,000 2,077,500
Lisbon Regional School District, New
Hampshire, General Obligation Capital
Appreciation School Bonds,
0.0%, 2-1-2013 ........................ 2,160 1,085,400
Total ................................. 13,959,013
NEW JERSEY - 2.27%
New Jersey Economic Development Authority:
First Mortgage Revenue Bonds
(The Evergreens-Series 1992),
9.25%, 10-1-2022 ...................... 2,000 2,010,000
First Mortgage Revenue Fixed Rate Bonds
(Franciscan Oaks Project-Series 1992A),
8.5%, 10-1-2023 ....................... 1,500 1,505,625
Pollution Control Financing Authority of
Camden County (Camden County, New Jersey),
Solid Waste Disposal and Resource
Recovery System Revenue Bonds,
Series 1991B (AMT),
7.5%, 12-1-2009 ....................... 3,000 3,097,500
New Jersey Housing Finance Agency,
Multi-Family Mortgage Revenue Bonds,
1976 Series A,
8.25%, 11-1-2020 ...................... 1,000 1,000,000
Total ................................. 7,613,125
NEW MEXICO - 0.83%
New Mexico Educational Assistance
Foundation, Student Loan Purchase Bonds,
Second Subordinate 1994 Series II-C (AMJ),
6.0%, 12-1-2008 ....................... 3,000 2,793,750
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW YORK - 1.52%
The Port Authority of New York and New
Jersey, Special Project Bonds, Series 2,
Continental Airlines, Inc. and Eastern Air
Lines, Inc. Project, LaGuardia Airport
Passenger Terminal, Third Installment Bonds,
9.125%, 12-1-2015 ..................... $ 1,945 $ 2,234,319
New York State Energy Research and
Development Authority, Solid Waste
Disposal Revenue Bonds (New York State
Electric & Gas Corporation Project),
1993 Series A,
5.7%, 12-1-2028 ....................... 2,000 1,795,000
New York City Industrial Development Agency,
Civic Facility Revenue Bonds (YMCA of
Greater New York Project),
8.0%, 8-1-2016 ........................ 1,000 1,061,250
Total ................................. 5,090,569
OHIO - 1.55%
Hamilton County, Ohio, Health System Revenue
Bonds, Providence Hospital Issue,
Series 1992,
6.875%, 7-1-2015 ...................... 2,000 1,977,500
County of Lorain, Ohio, First Mortgage
Revenue Bonds, 1992 Series A (Kendal at
Oberlin Project),
8.625%, 2-1-2022 ...................... 1,000 1,103,750
City of Fairfield, Ohio, Economic
Development Revenue Refunding Bonds
(Beverly Enterprises-Ohio, Inc. Project),
Series 1992,
8.5%, 1-1-2003 ........................ 1,000 1,075,000
County of Butler, Ohio, Hospital Facilities
Revenue Refunding and Improvement Bonds,
Series 1991 (Fort Hamilton-Hughes Memorial
Hospital Center),
7.5%, 1-1-2010 ........................ 1,000 1,037,500
Total ................................. 5,193,750
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
OKLAHOMA - 3.89%
Oklahoma County Industrial Authority,
Industrial Development Revenue Bonds:
1986 Series B (Choctaw Nursing
Center Project):
10.25%, 9-1-2016 ...................... $ 1,230 $ 1,288,425
10.125%, 9-1-2006 ..................... 525 547,313
1986 Series A (Westlake Nursing Center
Project):
10.25%, 9-1-2016 ...................... 905 949,119
10.125%, 9-1-2006 ..................... 430 449,350
The Clinton Public Works Authority,
Refunding and Improvement Revenue
Bonds, Series 1994,
6.25%, 1-1-2019 ....................... 2,575 2,404,406
Trustees of the Tulsa Municipal Airport
Trust, Adjustable Rate Revenue
Obligations,
7.375%, 12-1-2020 ..................... 2,000 2,022,500
Trustees of the Oklahoma Ordnance Works
Authority, Industrial Development Revenue
Refunding Bonds (A.P. Green Industries,
Inc. Project), Series 1992,
8.5%, 5-1-2008 ........................ 1,600 1,624,000
Pawnee Public Works Authority (Pawnee,
Oklahoma), Utility System Revenue Bonds,
Series 1993,
6.5%, 12-1-2018 ....................... 1,610 1,523,463
Cushing Municipal Authority (Cushing,
Oklahoma), Utility System Revenue Bonds,
Series 1993,
6.0%, 7-1-2016 ........................ 1,345 1,254,213
Oklahoma City Public Property Authority
(Oklahoma City, Oklahoma), Revenue Bonds,
Series 1991 (Oklahoma City Golf System),
8.0%, 10-1-2013 ....................... 1,000 986,250
Total ................................. 13,049,039
PENNSYLVANIA - 7.01%
Delaware County Authority (Pennsylvania):
First Mortgage Revenue Bonds, Series 1992
(Riddle Village Project):
8.0%, 6-1-99 .......................... 1,500 1,528,125
9.25%, 6-1-2022 ....................... 1,000 1,042,500
Health Facilities Revenue Bonds, Series
1993B (Mercy Health Corporation of
Southeastern Pennsylvania Obligated Group),
6.0%, 11-15-2007 ...................... 2,750 2,543,750
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
PENNSYLVANIA (Continued)
Erie City Water Authority, Erie County,
Pennsylvania, Water Revenue Bonds,
Series of 1991,
7.125%, 12-1-2011 ..................... $ 3,290 $ 3,372,250
Luzerne County Industrial Development
Authority:
Exempt Facilities Revenue Refunding Bonds,
1992 Series A (Pennsylvania Gas and
Water Company Project),
7.2%, 10-1-2017 ....................... 2,000 2,055,000
Exempt Facilities Revenue Bonds, 1992
Series B (Pennsylvania Gas and Water
Company Project),
7.125%, 12-1-2022 ..................... 1,000 1,022,500
Wilkins Area Industrial Development Authority
(Pennsylvania), First Mortgage Revenue
Bonds (Longwood at Oakmont, Inc. Continuing
Care Retirement Community Project),
Series 1991A,
10.0%, 1-1-2021 ....................... 2,000 2,492,687
McKeesport Hospital Authority (Commonwealth
of Pennsylvania), Hospital Revenue Bonds,
Series of 1993 (McKeesport Hospital Project),
6.5%, 7-1-2008 ........................ 2,500 2,421,875
The Hospitals and Higher Education Facilities
Authority of Philadelphia, Hospital Revenue
Bonds, Series of 1993 (Temple University
Hospital),
6.5%, 11-15-2008 ...................... 2,335 2,375,863
South Wayne County Water and Sewer Authority
(Wayne County, Pennsylvania), Sewer Revenue
Bonds, Series of 1992,
8.2%, 4-15-2013 ....................... 1,965 2,043,600
Clarion County Industrial Development Authority
(Pennsylvania), Health Facilities Revenue
Refunding Bonds (Beverly Enterprises
Project), Series 1985,
10.125%, 5-1-2007 ..................... 900 1,024,875
Erie, Pennsylvania Sewer Authority,
Sewer Revenue Bonds,
6.0%, 6-1-2011 ........................ 1,000 941,250
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
PENNSYLVANIA (Continued)
The Hospitals Authority of Philadelphia,
Hospital Revenue Bonds, Series of 1979
(James C. Giuffre Medical Center),
8.25%, 7-1-2009(A) .................... $ 1,415 $ 636,750
Total ................................. 23,501,025
RHODE ISLAND - 1.45%
Providence Public Buildings Authority
(Veazie Street School and Modular Classrooms
Projects), Revenue Bonds, Series 1991:
7.3%, 12-1-2010 ....................... 1,000 1,051,250
7.3%, 12-1-2011 ....................... 1,000 1,047,500
Pawtucket Public Buildings Authority (Water
System Project), Revenue Bonds, Series 1991:
7.6%, 7-1-2010 ........................ 840 897,750
7.6%, 7-1-2009 ........................ 785 838,969
Rhode Island Health and Educational Building
Corporation, Hospital Financing Revenue Bonds,
South County Hospital Issue - Series 1991,
7.25%, 11-1-2011 ...................... 1,000 1,018,750
Total ................................. 4,854,219
SOUTH CAROLINA - 3.67%
Charleston County, South Carolina, Industrial
Refunding Revenue Bonds, 1982 Series (Massey
Coal Terminal, South Carolina Corporate Project),
Adjustable Convertible Extendible Securities,
2.9%, 1-1-2007 ........................ 3,000 3,000,000
South Carolina State Housing, Finance
and Development Authority, Multifamily
Housing Mortgage Revenue Bonds (United
Dominion-Plum Chase), Series 1991,
8.5%, 10-1-2021 ....................... 2,000 2,210,000
Horry County, South Carolina, Hospital Revenue
Refunding Bonds, Series 1992 (Conway Hospital, Inc.),
6.75%, 7-1-2012 ....................... 2,000 1,950,000
McCormick County, South Carolina, Hospital
Facilities Revenue Bonds, Series 1988
(McCormick Health Care Center Project),
10.5%, 3-1-2018 ....................... 1,485 1,531,406
South Carolina Jobs-Economic Development Authority,
Economic Development Revenue Bonds (Carolinas
Hospital System Project), Series 1992,
7.0%, 9-1-2014 ........................ 1,500 1,486,875
York County, South Carolina, Water and
Sewer System Revenue Bonds, Series 1993,
6.5%, 12-1-2014 ....................... 1,100 1,062,875
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
SOUTH CAROLINA (Continued)
County of Chester, South Carolina, Industrial
Development Refunding Revenue Bonds (Springs
Industries, Inc. Project), Series 1992,
7.35%, 2-1-2014 ....................... $ 1,000 $ 1,062,500
Total ................................. 12,303,656
SOUTH DAKOTA - 0.57%
South Dakota Health and Educational
Facilities Authority, Refunding Revenue
Bonds (Westhills Village Retirement
Community Issue), Series 1993,
7.25%, 9-1-2013 ....................... 2,000 1,910,000
TENNESSEE - 3.19%
Memphis-Shelby County Airport Authority,
Special Facilities Revenue Bonds,
Series 1993 (Federal Express Corporation),
6.2%, 7-1-2014 ........................ 3,000 2,797,500
The Industrial Development Board of the
Metropolitan Government of Nashville and
Davidson County:
Multi-Family Housing Revenue Bonds
(River Retreat II, Ltd. Project),
Series 1986,
9.5%, 5-1-2017 ........................ 1,500 1,385,625
Industrial Development Revenue Bonds, Series
1986 (Shoney's Inn of Opryland Project),
10.0%, 12-1-2016 ...................... 1,100 1,123,375
The Industrial Development Board of the
County of McMinn, Solid Waste Recycling
Facilities Revenue Bonds, Series 1992
(Calhoun Newsprint Company Project -
Bowater Incorporated Obligor),
7.4%, 12-1-2022 ....................... 2,000 2,080,000
The Health and Educational Facilities
Board of the City of Crossville, Tennessee,
Hospital Revenue Improvement Bonds,
Series 1992 (Cumberland Medical Center),
6.75%, 11-1-2012 ...................... 2,000 1,960,000
The Health and Educational Facilities Board
of the Metropolitan Government of
Nashville and Davidson County, Tennessee,
First Mortgage Revenue Bonds (Metropolitan
Nashville Teachers' Nursing Facility,
Inc. Project), Series 1989,
10.25%, 10-1-2019(A) .................. 1,585 1,329,419
Total ................................. 10,675,919
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
TEXAS - 4.19%
Alliance Airport Authority, Inc., Special
Facilities Revenue Bonds, Series 1991
(American Airlines, Inc. Project),
7.0%, 12-1-2011 ....................... $ 4,500 $ 4,466,250
Retama Development Corporation, Special
Facilities Revenue Bonds (Retama Park
Racetrack Project), Series 1993,
8.75%, 12-15-2018 ..................... 3,500 3,250,625
Dallas-Fort Worth International Airport
Facility Improvement Corporation, American
Airlines, Inc. Revenue Bonds, Series 1990,
7.5%, 11-1-2025 ....................... 2,000 2,037,500
Dallas County Utility and Reclamation
District, Unlimited Ad Valorem Tax
Refunding Bonds, Series 1993,
0.0%, 2-15-2016 ....................... 7,915 1,879,813
Texas Health Facilities Development
Corporation, Hospital Revenue Bonds (All
Saints Episcopal Hospitals of Fort Worth
Project), Series 1989A,
6.25%, 8-15-2010 ...................... 1,350 1,270,688
Housing Authority of the City of Odessa,
Texas, Multifamily Mortgage Revenue Bonds,
Series 1993A (Section 8 Assisted Project),
6.375%, 10-1-2010 ..................... 1,225 1,146,906
Total ................................. 14,051,782
UTAH - 1.31%
Carbon County, Utah, Solid Waste Disposal
Refunding Revenue Bonds, Series 1991
(Sunnyside Cogeneration Associates Project),
9.25%, 7-1-2018 ....................... 2,500 2,659,375
Brigham City, Box Elder County, Utah,
Special Assessment Bonds, Series 1990
(Brigham City, Utah, Special Improvement
District No. 22),
9.25%, 8-1-2010 ....................... 1,690 1,728,025
Total ................................. 4,387,400
VERMONT - 0.75%
Vermont Industrial Development Authority,
Mortgage Revenue Bonds, Wake Robin
Corporation Project, Series 1993A,
8.75%, 3-1-2023 ....................... 2,500 2,525,000
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
VIRGIN ISLANDS - 0.44%
Virgin Islands Public Finance Authority,
Revenue Refunding Bonds (Virgin Islands
General Obligation/Matching Fund Loan
Notes), Series 1992 A,
7.25%, 10-1-2018 ...................... $ 1,400 $ 1,475,250
VIRGINIA - 1.43%
Industrial Development Authority of the
County of Prince William (Virginia),
Residential Care Facility First Mortgage
Revenue Bonds (Westminster at Lake Ridge),
Series 1992A,
10.0%, 1-1-2022 ....................... 2,500 2,684,375
Virginia Housing Development Authority,
Commonwealth Mortgage Bonds:
1988 Series B, Subseries B-5,
7.8%, 7-1-2008 ........................ 1,000 1,058,750
1988 Series C, Subseries C-2,
8.0%, 1-1-2038 ........................ 1,000 1,051,250
Total ................................. 4,794,375
WASHINGTON - 1.39%
Pilchuck Development Public Corporation
(State of Washington), Special Facilities
Airport Revenue Bonds, Series 1993
(TRAMCO, INC. Project),
6.0%, 8-1-2023 ........................ 3,250 2,880,313
Stevens County Public Corporation, Pollution
Control Revenue Refunding Bonds (The
Washington Water Power Company Kettle
Falls Project), Series 1993,
6.0%, 12-1-2023 ....................... 1,000 907,500
Economic Development Corporation of Pierce
County (Washington), Solid Waste Disposal
Revenue Bonds (Occidental Petroleum
Corporation Project), Series 1993,
5.8%, 9-1-2029 ........................ 1,000 862,500
Total ................................. 4,650,313
See Notes to Schedule of Investments on page 22.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
MARCH 31, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
WEST VIRGINIA - 0.62%
West Virginia Hospital Finance Authority,
State of West Virginia, Hospital Revenue
Refunding Bonds, Series of 1986 (Logan
General Hospital Project),
8.75%, 4-1-2013 ....................... $ 2,000 $ 2,085,000
WISCONSIN - 0.69%
The Wisconsin Public Power Incorporated
SYSTEM, Power Supply System Revenue
Bonds, Series 1993, Adjustable Rate Bond,
7.85%, 7-1-2014 ....................... 2,700 2,315,250
TOTAL MUNICIPAL BONDS - 97.34% $326,354,679
(Cost: $322,660,708)
TOTAL SHORT-TERM SECURITIES - 1.24% $ 4,175,000
(Cost: $4,175,000)
TOTAL INVESTMENT SECURITIES - 98.58% $330,529,679
(Cost: $326,835,708)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.42% 4,747,617
NET ASSETS - 100.00% $335,277,296
Notes to Schedule of Investments
(A) Non-income producing as the issuer has either missed its most recent
interest payment or declared bankruptcy.
(B) Security is paying partial interest.
See Note 1 to financial statements for security valuation and other significant
accounting policies concerning investments.
See Note 3 to financial statements for cost and unrealized appreciation and
depreciation of investments owned for Federal income tax purposes.
<PAGE>
UNITED MUNICIPAL HIGH INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1994
Assets
Investment securities - at value
(Notes 1 and 3) ................................. $330,529,679
Cash ............................................. 10,322
Receivables:
Interest ........................................ 6,964,669
Fund shares sold ................................ 604,741
Prepaid insurance premium ........................ 8,531
------------
Total assets .................................. 338,117,942
------------
Liabilities
Payable for Fund shares redeemed ................. 1,397,730
Payable for investment securities purchased ...... 966,346
Dividends payable ................................ 372,059
Accrued service fee .............................. 69,035
Accrued transfer agency and dividend disbursing .. 22,237
Accrued accounting services fee .................. 4,167
Other ............................................ 9,072
------------
Total liabilities ............................. 2,840,646
------------
Total net assets ............................. $335,277,296
============
Net Assets
$1.00 par value capital stock, authorized --
100,000,000; shares outstanding -- 64,799,877
Capital stock ................................... $ 64,799,877
Additional paid-in capital ...................... 265,168,126
Accumulated undistributed gain:
Accumulated undistributed net realized
gain on investment transactions ............... 1,615,322
Net unrealized appreciation in value of
investments at end of period .................. 3,693,971
------------
Net assets applicable to outstanding
units of capital ............................. $335,277,296
============
Net asset value per share (net assets divided
by shares outstanding) ........................... $5.17
=====
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL HIGH INCOME FUND, INC.
STATEMENT OF OPERATIONS
For the Six Months ended MARCH 31, 1994
Investment Income
Interest (taxable portion - $82,057) ............. $11,908,385
-----------
Expenses (Note 2):
Investment management fee ....................... 874,913
Service fee ..................................... 159,228
Transfer agency and dividend disbursing ......... 138,725
Accounting services fee ......................... 25,000
Audit fees ...................................... 18,218
Custodian fees .................................. 11,815
Legal fees ...................................... 11,591
Other ........................................... 89,325
-----------
Total expenses ................................ 1,328,815
-----------
Net investment income ........................ 10,579,570
-----------
Realized and Unrealized Gain (Loss) on Investments
Realized net gain on investments ................. 1,767,780
Unrealized depreciation in value of investments
during the period ............................... (19,749,322)
-----------
Net loss on investments ......................... (17,981,542)
-----------
Net decrease in net assets
resulting from operations .................... $(7,401,972)
===========
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL HIGH INCOME FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the For the
six months fiscal year
ended ended
March 31, September 30,
1994 1993
------------ ------------
Increase in Net Assets
Operations:
Net investment income ...............$ 10,579,570 $ 18,845,213
Realized net gain on investments .... 1,767,780 5,051,945
Unrealized appreciation (depreciation) (19,749,322) 14,102,680
------------ ------------
Net increase (decrease) in net
assets resulting from
operations ....................... (7,401,972) 37,999,838
------------ ------------
Dividends to shareholders from:*
Net investment income ............... (10,579,570) (18,845,213)
Realized net gain from investment
transactions ...................... (4,619,834) (2,193,823)
------------ ------------
(15,199,404) (21,039,036)
------------ ------------
Capital share transactions:
Proceeds from sale of shares
(6,304,223 and 11,521,464 shares,
respectively) ..................... 34,422,290 61,425,292
Proceeds from reinvestment of
dividends and/or capital gains
distribution (2,338,377 and 3,220,064
shares, respectively) ............. 12,722,509 17,133,052
Payments for shares redeemed
(3,429,179 and 5,063,005 shares,
respectively) ..................... (18,639,607) (26,922,626)
------------ ------------
Net increase in net assets
resulting from capital
share transactions ............... 28,505,192 51,635,718
------------ ------------
Total increase ................... 5,903,816 68,596,520
Net Assets
Beginning of period .................. 329,373,480 260,776,960
------------ ------------
End of period ........................$335,277,296 $329,373,480
============ ============
Undistributed net investment
income ............................$ --- $ ---
============ ============
*See "Financial Highlights" on page 26.
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL HIGH INCOME FUND, INC.
FINANCIAL HIGHLIGHTS
For a Share of Capital Stock Outstanding
Throughout Each Period:
For the
six For the fiscal year ended
months September 30,
ended ------------------------------------
3/31/94 1993 1992 1991 1990 1989
------- ------ ------ ------ ------ ------
Net asset value,
beginning of
period ........... $5.53 $5.23 $5.05 $4.85 $4.96 $4.84
----- ----- ----- ----- ----- -----
Income from investment
operations:
Net investment
income........... .17 .35 .36 .38 .39 .41
Net realized and
unrealized gain
(loss) on
investments ..... (0.29) .34 .18 .20 (0.11) .12
----- ----- ----- ----- ----- -----
Total from investment
operations ....... (0.12) .69 .54 .58 .28 .53
----- ----- ----- ----- ----- -----
Less distributions:
Dividends declared from
net investment
income .......... (0.17) (0.35) (0.36) (0.38) (0.39) (0.41)
Distribution from
capital gains ... (0.07) (0.04) .00 .00 .00 .00
----- ----- ----- ----- ----- -----
Total distributions. (0.24) (0.39) (0.36) (0.38) (0.39) (0.41)
----- ----- ----- ----- ----- -----
Net asset value, end
of period ........ $5.17 $5.53 $5.23 $5.05 $4.85 $4.96
===== ===== ===== ===== ===== =====
Total return* ...... -2.29% 13.77% 11.08% 12.35% 5.89% 11.38%
Net assets, end
of period (000
omitted) ..........$335,277$329,373$260,777$224,945$192,440$168,838
Ratio of expenses to
average net
assets ........... 0.78%** 0.70% 0.72% 0.77% 0.75% 0.75%
Ratio of net investment
income to average
net assets ....... 6.24%** 6.49% 7.08% 7.63% 7.97% 8.36%
Portfolio turnover
rate ............. 22.06%**26.13% 54.18% 60.83% 27.31% 38.94%
*Total return calculated without taking into account the sales load deducted on
an initial purchase.
**Annualized.
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL HIGH INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1994
NOTE 1 -- Significant Accounting Policies
United Municipal 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 -- Municipal bonds and the taxable obligations in the
Fund's investment portfolio are not listed or traded on any securities
exchange. Therefore, municipal bonds are valued using prices quoted by
Muller and Company, a dealer in bonds which offers a pricing service.
Short-term debt securities, whether taxable or nontaxable, are valued at
amortized cost, which approximates market.
B. Security transactions and related investment income -- Security
transactions are accounted for on the trade date (date the order to buy or
sell is executed). Securities gains and losses are calculated on the
identified cost basis. Original issue discount (as defined by the Internal
Revenue Code) and premiums on the purchase of bonds are amortized for both
financial and tax reporting purposes over the remaining lives of the bonds.
Interest income is recorded on the accrual basis. See Note 3 -- Investment
Security Transactions.
C. Federal income taxes -- The Fund intends to distribute all of its net
investment income and capital gains to its shareholders and otherwise
qualify as a regulated investment company under the Internal Revenue Code.
The Fund intends to pay distributions as required to avoid imposition of
excise tax. Accordingly, provision has not been made for Federal income
taxes. In addition, the Fund intends to meet requirements of the Internal
Revenue Code which will permit it to pay dividends from net investment
income, substantially all of which will be exempt from Federal income tax.
See Note 4 -- Federal Income Tax Matters.
D. Dividends and distributions -- All of the Fund's net investment income is
declared and recorded by the Fund as dividends payable on each day to
shareholders of record at the time of the previous determination of net
asset value. During the period ended March 31, 1994, the Fund adopted
Statement of Position 93-2 Determination, Disclosure, and Financial
Statement Presentation of Income, Capital Gain, and Return of Capital
Distributions by Investment Companies. Accordingly, permanent book and tax
basis differences relating to future shareholder distributions have been
reclassified to additional paid-in capital. As of October 1, 1993, the
cumulative effect of such differences totaling $1,050 was reclassified from
accumulated undistributed net realized gain on investment transactions to
additional paid-in capital. Net investment income, net realized gains and
net assets were not affected by this change.
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 .10% 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 was paid 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
$897,300, out of which W&R paid sales commissions of $504,391 and all expenses
in connection with the sale of Fund shares, except for registration fees and
related expenses.
Effective October 1, 1993, the Fund adopted a 12b-1 Service Plan with a
maximum fee of .25%
The Fund paid Directors' fees of $6,189.
W&R is an indirect subsidiary of Torchmark Corporation, a holding company,
and United Investors Management Company, a holding company, and a direct
subsidiary of Waddell & Reed Financial Services, Inc., a holding company.
NOTE 3 -- Investment Security Transactions
Purchases of investment securities, other than U.S. Government and short-
term securities, aggregated $62,551,690, while proceeds from maturities and
sales aggregated $36,346,026. Purchases of short-term securities aggregated
$54,841,672, while proceeds from maturities and sales aggregated $58,735,561.
There was no gain or loss on the sale of short-term securities. No U.S.
Government securities were bought or sold during the period ended March 31,
1994.
For Federal income tax purposes, cost of investments owned at March 31,
1994 was $326,835,708, resulting in net unrealized appreciation of $3,693,971 of
which $11,888,418 related to appreciated securities and $8,194,447 related to
depreciated securities.
NOTE 4 -- Federal Income Tax Matters
For Federal income tax purposes, the Fund realized capital gain net income
of $5,051,945 during the fiscal year ended September 30, 1993, which has been
paid to shareholders.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
United Municipal 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 Municipal High Income Fund,
Inc. (the "Fund") at March 31, 1994, the results of its operations for the six
months then ended and the changes in its net assets and the financial highlights
for the periods indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at March 31, 1994 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE
Kansas City, Missouri
April 29, 1994
<PAGE>
DIRECTORS
Ronald K. Richey, Birmingham, Alabama, Chairman of the Board
Henry L. Bellmon, Red Rock, Oklahoma
Dodds I. Buchanan, Boulder, Colorado
Jay B. Dillingham, Kansas City, Missouri
John F. Hayes, Hutchinson, Kansas
Glendon E. Johnson, Miami, Florida
William T. Morgan, Los Angeles, California
Doyle Patterson, Kansas City, Missouri
Keith A. Tucker, Overland Park, Kansas
Frederick Vogel, III, Milwaukee, Wisconsin
Paul S. Wise, Carefree, Arizona
Leslie S. Wright, Birmingham, Alabama
OFFICERS
Keith A. Tucker, President
Robert L. Hechler, Vice President
Henry J. Herrmann, Vice President
John M. Holliday, Vice President
Theodore W. Howard, Vice President and Treasurer
Rodney O. McWhinney, Vice President
Sharon K. Pappas, Vice President and Secretary
Carl E. Sturgeon, Vice President
<PAGE>
The United Group of Mutual Funds
United Cash Management, Inc.
United Government Securities Fund, Inc.
United Bond Fund
United Municipal Bond Fund, Inc.
United Continental Income Fund, Inc.
United Income Fund
United Municipal High Income Fund, Inc.
United High Income Fund, Inc.
United High Income Fund II, Inc.
United Accumulative Fund
United Vanguard Fund, Inc.
United New Concepts Fund, Inc.
United Science and Technology Fund
United International Growth Fund, Inc.
United Gold & Government Fund, Inc.
United Retirement Shares, Inc.
FOR MORE INFORMATION:
Contact your representative, or your
local office as listed on your
Account Statement, or contact:
WADDELL & REED
CUSTOMER SERVICE
6300 Lamar Avenue
P.O. Box 29217
Shawnee Mission, KS 66201-9217
(913) 236-1303
NUR1014SA(3-94)
printed on recycled paper
