United
Municipal
High Income
Fund, Inc.
ANNUAL
REPORT
--------------------------------------------
For the fiscal year ended September 30, 1994
<PAGE>
FUND MANAGER'S LETTER
- -----------------------------------------------------------------
SEPTEMBER 30, 1994
Dear Shareholder:
This report relates to the operation of your Fund for the fiscal year ended
September 30, 1994. The following discussion, graphs and tables provide you
with information regarding the Fund's performance during that period.
The past fiscal year was noteworthy for the upward movement of interest
rates. The Federal Reserve increased rates several times to preempt the
inflationary tendencies that might result from a strengthening economy. For the
year, inflation remained low relative to historic levels. The increases in
interest rates caused the bond markets to fall, while slowing economic growth
somewhat relative to what might have occurred otherwise.
This past year the Fund emphasized bonds with comparatively higher yields
and shorter maturities because bonds with those characteristics generally
perform relatively well in a rising interest rate environment. Concentration on
bonds of this nature better allowed the Fund to preserve share value.
The strategies and techniques we applied resulted in the direction of the
Fund's performance remaining fairly consistent with that of the indexes charted
on the following page. Those indexes reflect the performance of securities that
generally represent the municipal bond market (the Lehman Brothers Municipal
Bond Index) and the universe of funds with similar investment objectives (the
Lipper High Yield Municipal Bond Fund Universe Average). During the past fiscal
year the Fund performed better than these indexes as a result of the Fund's
strategy of investing heavily in bonds with comparatively higher coupons and
shorter maturities.
We expect the economy to continue growing, and we believe the Federal
Reserve will increase interest rates further if the pace of economic growth
strengthens. In that event, we expect short-term interest rates would increase
by a significantly greater amount than long-term rates, which are already
unusually high relative to the current rate of inflation. When it becomes
clearer that economic growth has slowed and the Federal Reserve has no further
intention of raising interest rates, we intend to lengthen maturities to
increase yields and improve the potential for appreciation. We believe that
even at current levels municipal bond yields are very attractive for long-term
investors.
Thank you for your continued confidence.
Respectfully,
John M. Holliday
Manager, United Municipal High Income Fund
<PAGE>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
UNITED MUNICIPAL HIGH INCOME FUND, INC.,
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX,
AND THE LIPPER HIGH YIELD MUNICIPAL BOND FUND UNIVERSE AVERAGE
The line graph which appears here is the paper version which was filed on Form
SE on November 23, 1994.
<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. 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 Fiscal Year Ended September 30, 1994
- --------------------------------------------
DIVIDENDS PAID $0.34
=====
CAPITAL GAINS DISTRIBUTION $0.07
=====
NET ASSET VALUE ON
9/30/94 $5.12 adjusted to: $5.19(A)
9/30/93 5.53
-----
CHANGE PER SHARE ($0.34)
=====
(A) This number includes the capital gains distribution of $0.07 paid in
December 1993 added to the actual net asset value on September 30, 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 9-30-94 -4.21% 0.05%
5-year period ended 9-30-94 7.57% 8.50%
Period from 1-21-86*
through 9-30-94 8.06% 8.60%
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 September 30, 1994, United Municipal High Income Fund, Inc. had net assets
totaling $345,161,856 invested in a diversified portfolio.
As a shareholder in United Municipal High Income Fund, Inc., for every $100 you
had invested on September 30, 1994, your Fund owned:
$19.29 Other Municipal Bonds
18.57 Life Care/Nursing Center Revenue Bonds
15.62 Hospital Revenue Bonds
10.01 Industrial Development Revenue Bonds
7.98 Airport Revenue Bonds
5.51 Water and Sewer Revenue Bonds
5.08 Cash and Cash Equivalents
3.94 Housing Revenue Bonds
3.85 Resource Recovery Bonds
3.69 Lease/Certificates of Participation Bonds
3.39 General Obligation Bonds
3.07 Electric Utility Revenue Bonds
1994 TAX YEAR TAXABLE EQUIVALENT YIELDS*
- --------------------------------------------------------------------------------
If your Taxable Income is:
Your
Marginal Equivalent Tax Free Yields
Joint Single Tax -------------------------------
Return ReturnBracket 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.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS
ALABAMA - 1.49%
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 $ 2,050,000
The Colbert County-Northwest Alabama Health
Care Authority, Hospital Revenue Bonds,
Helen Keller Hospital, Series 1990,
8.75%, 6-1-2009 ....................... 1,000 1,093,750
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 1,045,000
The Marshall County Health Care Authority,
Hospital Revenue Refunding Bonds,
Series 1992 (Guntersville-Arab
Medical Center),
7.0%, 10-1-2013 ....................... 1,000 970,000
Total ................................. 5,158,750
ALASKA - 0.98%
Alaska Industrial Development and Export
Authority, Refunding Revenue Bonds, Series
1989 (American President Lines Project),
8.0%, 11-1-2009 ....................... 1,820 1,901,900
Anchorage Parking Authority, Lease Revenue
Refunding Bonds, Series 1993 (5th Avenue
Garage Project),
6.75%, 12-1-2008 ...................... 1,500 1,490,625
Total ................................. 3,392,525
ARIZONA - 0.46%
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 1,605,338
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
ARKANSAS - 1.01%
Baxter County, Arkansas, Industrial
Development Revenue Refunding Bonds
(Aeroquip Corporation Project),
Series 1993,
5.8%, 10-1-2013 ....................... $2,000 $ 1,797,500
The Fayetteville Public Facilities Board,
Refunding and Improvement Revenue Bonds,
Series 1989A (Butterfield Trail Village
Project),
9.5%, 9-1-2014 ........................ 1,600 1,694,000
Total ................................. 3,491,500
CALIFORNIA - 3.17%
San Joaquin Hills Transportation Corridor
Agency (Orange County, California):
Junior Lien Toll Road Revenue Bonds,
0.0%, 1-1-2002 ........................ 2,755 1,687,438
Senior Lien Toll Road Revenue Bonds,
0.0%, 1-1-2011 ........................ 2,500 1,496,875
Huntington Beach Public Financing Authority
(Orange County, California), 1992 Revenue
Bonds (Huntington Beach Redevelopment
Projects),
7.0%, 8-1-2024 ........................ 3,000 2,921,250
Certificates of Participation (1991 Capital
Improvement Project), Bella Vista Water
District (California),
7.375%, 10-1-2017 ..................... 1,500 1,561,875
Carson Redevelopment Agency (California),
Redevelopment Project Area No. 2,
Refunding Tax Allocation Bonds,
Series 1993,
6.0%, 10-1-2016 ....................... 1,500 1,338,750
Central Valley Financing Authority,
Cogeneration Project Revenue Bonds
(Carson Ice-Gen Project), 1993 Series,
6.1%, 7-1-2013 ........................ 1,000 921,250
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 ........................ 900 905,625
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
CALIFORNIA (Continued)
Madera-Chowchilla Power Authority, California,
Floating Rate Bond,
3.3%, 9-1-2009 ........................ $ 95 $ 95,000
Total ................................. 10,928,063
COLORADO - 8.38%
City and County of Denver, Colorado,
Airport System Revenue Bonds:
Series 1991A,
8.75%, 11-15-2023 ..................... 6,000 6,330,000
Series 1994A,
7.5%, 11-15-2023 ...................... 3,000 2,868,750
Colorado Health Facilities Authority:
Hospital Revenue Bonds (PSL Healthcare
System Project), Series 1991B,
8.5%, 2-15-2021 ....................... 3,000 3,255,000
Retirement Housing Revenue Bonds (Liberty
Heights Project), 1990 Series A Term Bonds,
10.0%, 7-1-2019 (A) ................... 1,500 975,000
City and County of Denver, Colorado,
Revenue Bonds (Jewish Community Centers
of Denver Project), Series 1994:
8.25%, 3-1-2024 ....................... 2,390 2,357,138
7.875%, 3-1-2019 ...................... 815 803,794
City of Colorado Springs, Colorado,
Airport System Revenue Bonds, Series 1992A,
7.0%, 1-1-2022 ........................ 2,200 2,208,250
City of Central, Gilpin County, Colorado:
General Obligation Water Bonds,
Series 1992,
7.5%, 12-1-2012 ....................... 1,500 1,496,250
Water Revenue Bonds, Series 1991,
8.625%, 9-15-2011 ..................... 500 521,250
Brush Creek Village Water District, Pitkin
County, Colorado, General Obligation
Water Bonds, Series 1990,
8.875%, 11-15-2009 .................... 1,500 1,796,250
Pitkin County, Colorado, Lease Purchase
Agreement, Certificates of Participation
(County Administration Building Project),
Series 1991,
7.4%, 10-1-2011 ....................... 1,500 1,569,375
Mountain Village Metropolitan District, San
Miguel County, Colorado, General
Obligation Refunding Bonds, Series 1992,
8.1%, 12-1-2011 ....................... 1,435 1,553,388
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
COLORADO (Continued)
Columbia Metropolitan District, Arapahoe
County, Colorado, General Obligation Bonds,
Series 1986,
9.5%, 12-1-2005 ....................... $1,165 $ 1,181,019
School District No. 20, El Paso County,
Colorado, General Obligation Refunding
Bonds, Series 1993A, Capital
Appreciation Bonds,
0.0%, 6-15-2008 ....................... 2,600 1,020,500
Arapahoe Water and Sanitation District,
Arapahoe County, Colorado, General
Obligation Refunding Bonds, Series 1988B,
9.25%, 12-1-2013 ...................... 1,000 1,001,250
Total ................................. 28,937,214
CONNECTICUT - 1.71%
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 2,687,500
Congregational Avery Nursing Facilities
Project - 1991 Series,
8.5%, 4-1-2021 ........................ 1,490 1,549,600
Eastern Connecticut Resource Recovery
Authority, Wheelabrator Technologies, Inc.,
5.5%, 1-1-2014 ........................ 2,000 1,665,000
Total ................................. 5,902,100
DISTRICT OF COLUMBIA - 1.48%
Certificates of Participation, Series 1993,
District of Columbia,
7.3%, 1-1-2013 ........................ 3,000 3,030,000
District of Columbia Revenue Bonds
(National Public Radio Issue),
Series 1992,
7.625%, 1-1-2013 ...................... 2,000 2,067,500
Total ................................. 5,097,500
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
FLORIDA - 2.12%
Lake County, Florida, Resource Recovery
Industrial Development Refunding Revenue
Bonds (NRG/Recovery Group Project),
Series 1993A,
5.95%, 10-1-2013 ...................... $2,500 $ 2,215,625
Highlands County (Florida), Industrial
Development Authority, Industrial
Development Revenue Refunding Bonds
(Beverly Enterprises - Florida, Inc.
Project), Series 1991,
9.25%, 7-1-2007 ....................... 1,490 1,642,725
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 1,404,000
City of Winter Garden, Florida, Industrial
Development Revenue Refunding Bonds
(Beverly Enterprises-Florida, Inc. Project),
Series 1991,
8.75%, 7-1-2012 ....................... 1,000 1,082,500
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 ..................... 950 982,063
Total ................................. 7,326,913
GEORGIA - 1.35%
Hospital Authority of Savannah, Revenue
Refunding and Improvement Bonds
(Candler Hospital), Series 1992,
7.0%, 1-1-2011 ........................ 3,180 3,136,275
City of Atlanta, Special Purpose Facilities
Revenue Bonds, Series 1989B (Delta Air
Lines, Inc. Project),
7.9%, 12-1-2018 ....................... 1,500 1,518,750
Total ................................. 4,655,025
GUAM - 0.86%
Guam Airport Authority, General Revenue
Bonds, 1993 Series B,
6.6%, 10-1-2010 ....................... 3,000 2,966,250
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
IDAHO - 0.59%
Idaho Health Facilities Authority, Hospital
Revenue Refunding Bonds, Series 1992
(IHC Hospitals, Inc.), Indexed Inverse
Floating Rate Securities,
8.21%, 2-15-2021 ...................... $2,000 $ 2,035,000
ILLINOIS - 4.81%
City of Hillsboro, Montgomery County,
Illinois, General Obligation Bonds
(Alternate Revenue Source), Series 1991,
7.5%, 12-1-2021 ....................... 2,640 2,735,700
Illinois Health Facilities Authority,
Revenue Bonds, Series 1992A
(Fairview Obligated Group Project),
8.75%, 10-1-2002 ...................... 2,500 2,590,625
Illinois Development Finance Authority
Revenue Bonds, Series 1993C (Catholic
Charities Housing Development
Corporation Project),
6.1%, 1-1-2020 ........................ 2,500 2,253,125
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 2,062,500
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 1,950,000
City of Blue Island, Cook County, Illinois,
Golf Course Revenue Bonds (Utility Tax
Pledge), Series 1992,
7.375%, 5-1-2014 ...................... 2,000 1,920,000
Village of Bourbonnais, Kankakee County,
Illinois, Sewerage Revenue Bonds,
Series 1993,
7.25%, 12-1-2012 ...................... 1,085 1,079,575
City of Loves Park, Illinois, First Mortgage
Revenue Bonds, Series 1989A (Hoosier Care,
Inc. Project),
9.75%, 8-1-2019 ....................... 1,025 1,049,344
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
ILLINOIS (Continued)
City of Eureka, Woodford County, Illinois,
General Obligation Refunding Bonds
(Alternate Revenue Source), Series 1993,
6.25%, 7-1-2013 ....................... $1,000 $ 948,750
Total ................................. 16,589,619
INDIANA - 2.67%
Indiana Health Facility Financing Authority,
Hospital Revenue Bonds, Series 1990
(Hancock Memorial Hospital Project),
8.3%, 8-15-2020 ....................... 3,000 3,217,500
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 1,917,500
Revenue Bonds, Inland Steel
Company Project No. 5,
Series 1977,
5.75%, 2-1-2007 ....................... 1,000 915,000
City of Carmel, Indiana, Retirement Rental
Housing Revenue Refunding Bonds (Beverly
Enterprises - Indiana, Inc. Project),
Series 1992,
8.75%, 12-1-2008 ...................... 1,500 1,627,500
Indiana Health Facility Financing
Authority, Hospital Revenue Bonds,
Series 1992 (Fayette Memorial Hospital
Project),
7.2%, 10-1-2022 ....................... 1,000 992,500
Indiana Housing Finance Authority, Residential
Mortgage Bonds, 1988 Series R-A,
0.0%, 1-1-2013 ........................ 2,525 542,875
Total ................................. 9,212,875
IOWA - 0.39%
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 1,334,938
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
KANSAS - 2.55%
Kansas Development Finance Authority,
Community Provider Loan Program (Community
Living Opportunities, Inc.), Series
1992A Revenue Bonds,
8.875%, 9-1-2011 ...................... $2,790 $ 2,929,500
Baldwin City, Kansas, Educational Facilities
Revenue Bonds (Baker University Project),
Series 1988,
9.5%, 10-1-2008 ....................... 2,000 2,102,500
City of Prairie Village, Kansas, Claridge
Court Project Revenue Bonds, Series 1993A:
8.5%, 8-15-2004 ....................... 1,000 976,250
8.75%, 8-15-2023 ...................... 1,000 973,750
Johnson County Park and Recreation District,
Johnson County, Kansas, Park and Recreation
Revenue Bonds, Series 1994A,
6.5%, 1-1-2019 ........................ 1,855 1,817,900
Total ................................. 8,799,900
KENTUCKY - 0.58%
County of Jefferson, Kentucky, Health
Facilities Revenue Refunding Bonds
(Beverly Enterprises Project),
Series 1985B,
9.75%, 8-1-2007 ....................... 900 999,000
County of Perry, Kentucky, Solid Waste
Disposal Revenue Bonds (TJ International
Project), Series 1994,
7.0%, 6-1-2024 ........................ 1,000 975,000
Total ................................. 1,974,000
LOUISIANA - 2.74%
Parish of St. Charles, State of Louisiana:
Environmental Revenue Bonds (Louisiana
Power & Light Company Project),
Series 1994-A,
6.875%, 7-1-2024 ...................... 2,750 2,688,125
Pollution Control Revenue Bonds
(Union Carbide Project),
Series 1992,
7.35%, 11-1-2022 ...................... 2,000 2,030,000
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 1,962,500
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
LOUISIANA (Continued)
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 $ 1,573,125
LaFourche Parish Home Mortgage Authority,
Tax-Exempt Capital Appreciation Refunding
Bonds, Series 1990-B, Class B-2,
0.0%, 5-20-2014 ....................... 3,300 709,500
Parish of Pointe Coupee, Louisiana,
Pollution Control Revenue Refunding Bonds
(Gulf States Utilities Company Project),
Series 1993,
6.7%, 3-1-2013 ........................ 500 490,625
Total ................................. 9,453,875
MARYLAND - 0.29%
Baltimore County, Maryland, Pollution
Control Revenue Refunding Bonds,
Series 1994A (Bethlehem Steel
Corporation Project),
7.55%, 6-1-2017 ....................... 1,000 1,015,000
MASSACHUSETTS - 2.43%
Massachusetts Industrial Finance Agency:
Resource Recovery Revenue Bonds (SEMASS
Project), Series 1991B,
9.25%, 7-1-2015 ....................... 3,000 3,337,500
First Mortgage Revenue Bonds, Reeds
Landing Project, Series 1993,
8.625%, 10-1-2023 ..................... 3,000 2,880,000
Revenue Bonds, Beaver Country Day School
Issue, Series 1992, Subseries A,
8.1%, 3-1-2008 ........................ 1,665 1,640,025
Industrial Development Revenue Refunding
Bonds (Beverly Enterprises-Mass./Gloucester
and Lexington Projects), Series 1992,
8.375%, 5-1-2009 ...................... 500 527,500
Total ................................. 8,385,025
MICHIGAN - 3.24%
Pontiac Hospital Finance Authority,
Hospital Revenue Bonds (NOMC Obligated
Group), Series 1993,
6.0%, 8-1-2023 ........................ 3,000 2,493,750
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MICHIGAN (Continued)
Michigan State Hospital Finance Authority,
Hospital Revenue Refunding Bonds
(Crittenton Hospital), Series 1994A,
5.25%, 3-1-2014 ....................... $3,000 $ 2,460,000
Portage Lake Water and Sewage Authority,
Houghton County, Michigan, General
Obligation Limited Tax Bonds:
Series II,
7.625%, 10-1-2020 ..................... 1,000 1,062,500
Series III,
7.75%, 10-1-2020 ...................... 1,000 1,040,000
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 2,075,000
Michigan Strategic Fund, Limited Obligation
Revenue Bonds:
Knollwood Corporation Project, Series A,
10.5%, 10-1-2016 (B) .................. 1,300 1,105,000
Mercy Services for Aging Project,
Series 1990,
9.4%, 5-15-2020 ....................... 900 957,375
Total ................................. 11,193,625
MINNESOTA - 1.31%
City of St. Anthony, Minnesota, Housing
Development Refunding Revenue Bonds
(Autumn Woods Project), Series 1992,
6.875%, 7-1-2022 ...................... 2,500 2,481,250
City of Mounds View, Minnesota, Gross
Revenue Golf Course Bonds, Series 1994A,
6.125%, 1-1-2014 ...................... 1,250 1,146,875
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 ...................... 880 905,300
Total ................................. 4,533,425
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MISSISSIPPI - 0.95%
Lowndes County, Mississippi, Solid Waste
Disposal and Pollution Control Refunding
Revenue Bonds (Weyerhaeuser Company
Project), Series 1992B, Indexed Inverse
Floating/Fixed Term Bonds,
8.21%, 4-1-2022 ....................... $2,000 $ 2,025,000
Adams County, Mississippi, Hospital Revenue
Bonds, Series 1991 (Jefferson Davis Memorial
Hospital Project),
8.0%, 10-1-2016 ....................... 1,200 1,260,000
Total ................................. 3,285,000
MISSOURI - 7.00%
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 3,273,750
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 3,210,000
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 2,890,625
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 1,571,250
7.75%, 8-15-2001 ...................... 1,100 1,142,625
Citizens Memorial Hospital District of
Polk County, Missouri, Hospital
Refunding and Improvement Revenue Bonds:
Series 1993,
6.5%, 8-1-2012 ........................ 1,500 1,365,000
Series 1994,
6.375%, 8-1-2007 ...................... 750 713,438
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MISSOURI (Continued)
Cape Girardeau County, Missouri, Single
Family Mortgage Revenue Bonds,
Series 1993,
0.0%, 12-1-2014 ....................... $7,500 $ 1,912,500
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 1,872,500
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 1,522,500
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 1,509,375
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 ..................... 1,240 1,284,950
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 1,000,000
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 ....................... 900 883,125
Total ................................. 24,151,638
MONTANA - 0.82%
Montana Board of Investments, Resource Recovery
Revenue Bonds, Series 1993 (Yellowstone Energy
Limited Partnership Project),
7.0%, 12-31-2019 ...................... 3,000 2,827,500
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEVADA - 1.18%
Clark County, Nevada,
Industrial Development Revenue Bonds
(Southwest Gas Corporation),
1992 Series B,
7.5%, 9-1-2032 ........................ $4,000 $ 4,080,000
NEW HAMPSHIRE - 4.55%
New Hampshire Higher Educational and Health
Facilities Authority:
Hospital Revenue Bonds, Catholic Medical
Center Issue, Series 1989,
8.25%, 7-1-2013 ....................... 2,000 2,135,000
First Mortgage Revenue Bonds, RiverWoods
at Exeter Issue, Series 1993,
9.0%, 3-1-2023 ........................ 2,000 2,045,000
First Mortgage Revenue Bonds, RiverMead
at Peterborough Issue, Series 1994,
8.5%, 7-1-2024 ........................ 2,000 1,932,500
Revenue Bonds, New Hampshire Catholic
Charities Issue, Series 1991,
8.4%, 8-1-2011 ........................ 1,700 1,793,500
Hospital Revenue Bonds, Monadnock
Community Hospital Issue, Series 1990,
9.125%, 10-1-2020 ..................... 1,485 1,598,231
Hospital Revenue Bonds, St. Joseph Hospital
Issue, Series 1991,
7.5%, 1-1-2016 ........................ 1,000 1,035,000
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 2,052,500
1991 Tax-Exempt Series C,
7.65%, 5-1-2021 ....................... 2,000 2,052,500
Lisbon Regional School District, New
Hampshire, General Obligation Capital
Appreciation School Bonds,
0.0%, 2-1-2013 ........................ 2,050 1,066,000
Total ................................. 15,710,231
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW JERSEY - 2.19%
New Jersey Economic Development Authority:
First Mortgage Revenue Bonds
(The Evergreens-Series 1992),
9.25%, 10-1-2022 ...................... $2,000 $ 2,017,500
First Mortgage Revenue Fixed Rate Bonds
(Franciscan Oaks Project-Series 1992A),
8.5%, 10-1-2023 ....................... 1,500 1,548,750
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 2,992,500
New Jersey Housing Finance Agency,
Multi-Family Mortgage Revenue Bonds,
1976 Series A,
8.25%, 11-1-2020 ...................... 1,000 1,000,000
Total ................................. 7,558,750
NEW MEXICO - 1.17%
New Mexico Educational Assistance
Foundation, Student Loan Purchase Bonds,
Second Subordinate 1994 Series II-C (AMJ),
6.0%, 12-1-2008 ....................... 3,000 2,748,750
City of Albuquerque, New Mexico, Gross
Receipts/Lodgers' Tax Refunding and
Improvement Revenue Bonds, Series 1991B,
0.0%, 7-1-2014 ........................ 5,000 1,300,000
Total ................................. 4,048,750
NEW YORK - 1.72%
The Port Authority of New York and New
Jersey, Special Project, 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 2,173,538
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 1,735,000
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW YORK (Continued)
New York City Industrial Development Agency,
Civic Facility Revenue Bonds (YMCA of
Greater New York Project),
8.0%, 8-1-2016 ........................ $1,000 $ 1,043,750
Tompkins County Industrial Development
Agency, Life Care Community Revenue Bonds,
1994 (Kendal at Ithaca, Inc. Project),
7.875%, 6-1-2024 ...................... 1,000 980,000
Total ................................. 5,932,288
OHIO - 1.18%
Hamilton County, Ohio, Health System Revenue
Bonds, Providence Hospital Issue,
Series 1992,
6.875%, 7-1-2015 ...................... 2,000 1,940,000
County of Lorain, Ohio, First Mortgage
Revenue Bonds, 1992 Series A (Kendal at
Oberlin Project),
8.625%, 2-1-2022 ...................... 1,000 1,080,000
City of Fairfield, Ohio, Economic
Development Revenue Refunding Bonds
(Beverly Enterprises-Ohio, Inc. Project),
Series 1992,
8.5%, 1-1-2003 ........................ 1,000 1,058,750
Total ................................. 4,078,750
OKLAHOMA - 4.09%
Oklahoma County Industrial Authority,
Industrial Development Revenue Bonds:
1986 Series B (Choctaw Nursing
Center Project):
10.25%, 9-1-2016 ...................... 1,230 1,274,588
10.125%, 9-1-2006 ..................... 525 541,406
1986 Series A (Westlake Nursing Center
Project):
10.25%, 9-1-2016 ...................... 905 938,938
10.125%, 9-1-2006 ..................... 430 443,975
The Clinton Public Works Authority,
Refunding and Improvement Revenue
Bonds, Series 1994,
6.25%, 1-1-2019 ....................... 2,575 2,314,281
Trustees of the Tulsa Municipal Airport
Trust, Adjustable Rate Revenue
Obligations,
7.375%, 12-1-2020 ..................... 2,000 1,940,000
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
OKLAHOMA (Continued)
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 $ 1,600,000
Pawnee Public Works Authority (Pawnee,
Oklahoma), Utility System Revenue Bonds,
Series 1993,
6.5%, 12-1-2018 ....................... 1,610 1,485,225
The Guthrie Public Works Authority
(Guthrie, Oklahoma), Utility System
Revenue Bonds, Series 1994A,
6.75%, 9-1-2019 ....................... 1,415 1,369,013
Cushing Municipal Authority (Cushing,
Oklahoma), Utility System Revenue Bonds,
Series 1993,
6.0%, 7-1-2016 ........................ 1,345 1,244,125
Oklahoma City Public Property Authority
(Oklahoma City, Oklahoma), Revenue Bonds,
Series 1991 (Oklahoma City Golf System),
8.0%, 10-1-2013 ....................... 1,000 966,250
Total ................................. 14,117,801
OREGON - 1.00%
Klamath Falls Intercommunity Hospital
Authority, Gross Revenue Bonds,
Series 1994 (Merle West Medical Center
Project),
7.1%, 9-1-2024 ........................ 3,500 3,434,375
PENNSYLVANIA - 6.71%
Delaware County Authority (Pennsylvania):
First Mortgage Revenue Bonds, Series 1992
(Riddle Village Project):
8.0%, 6-1-99 .......................... 1,500 1,522,500
9.25%, 6-1-2022 ....................... 1,000 1,073,750
Health Facilities Revenue Bonds, Series
1993B (Mercy Health Corporation of
Southeastern Pennsylvania Obligated Group),
6.0%, 11-15-2007 ...................... 2,750 2,512,813
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
PENNSYLVANIA (Continued)
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 $ 1,995,000
Exempt Facilities Revenue Bonds, 1992
Series B (Pennsylvania Gas and Water
Company Project),
7.125%, 12-1-2022 ..................... 1,000 988,750
Allegheny County Industrial Development
Authority (Pennsylvania), Environmental
Improvement Revenue Bonds (USX Corporation
Project), Refunding Series A 1994,
6.7%, 12-1-2000 ....................... 3,000 2,891,250
Pennsylvania Economic Development Financing
Authority, Rescue Recovery Revenue Bonds
(Colver Project), Series 1994 D,
7.125%, 12-1-2015 ..................... 2,500 2,462,500
McKeesport Hospital Authority (Commonwealth
of Pennsylvania), Hospital Revenue Bonds,
Series of 1993 (McKeesport Hospital Project),
6.5%, 7-1-2008 ........................ 2,500 2,409,375
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 2,250,356
South Wayne County Water and Sewer Authority
(Wayne County, Pennsylvania), Sewer Revenue
Bonds, Series of 1992,
8.2%, 4-15-2013 ....................... 1,925 1,888,906
Clarion County Industrial Development Authority
(Pennsylvania), Health Facilities Revenue
Refunding Bonds (Beverly Enterprises
Project), Series 1985,
10.125%, 5-1-2007 ..................... 900 1,009,125
Erie, Pennsylvania Sewer Authority,
Sewer Revenue Bonds,
6.0%, 6-1-2011 ........................ 1,000 921,250
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
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
PENNSYLVANIA (Continued)
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 ....................... $ 525 $ 589,313
Total ................................. 23,151,638
RHODE ISLAND - 1.40%
Providence Public Buildings Authority
(Veazie Street School and Modular Classrooms
Projects), Revenue Bonds, Series 1991:
7.3%, 12-1-2010 ....................... 1,000 1,041,250
7.3%, 12-1-2011 ....................... 1,000 1,037,500
Pawtucket Public Buildings Authority (Water
System Project), Revenue Bonds, Series 1991:
7.6%, 7-1-2010 ........................ 840 898,800
7.6%, 7-1-2009 ........................ 785 839,950
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 ................................. 4,836,250
SOUTH CAROLINA - 2.95%
Charleston County, South Carolina, Industrial
Refunding Revenue Bonds, 1982 Series (Massey
Coal Terminal, South Carolina Corporate Project),
Adjustable Convertible Extendible Securities,
3.95%, 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 2,192,500
McCormick County, South Carolina, Hospital
Facilities Revenue Bonds, Series 1988
(McCormick Health Care Center Project),
10.5%, 3-1-2018 ....................... 1,485 1,516,556
South Carolina Jobs-Economic Development Authority,
Economic Development Revenue Bonds (Carolinas
Hospital System Project), Series 1992,
7.0%, 9-1-2014 ........................ 1,500 1,460,625
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 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 $ 1,047,500
Horry County, South Carolina, Hospital
Revenue Refunding Bonds, Series 1992
(Conway Hospital, Inc.),
6.75%, 7-1-2012 ....................... 1,000 966,250
Total ................................. 10,183,431
SOUTH DAKOTA - 0.54%
South Dakota Health and Educational
Facilities Authority, Refunding Revenue
Bonds (Westhills Village Retirement
Community Issue), Series 1993,
7.25%, 9-1-2013 ....................... 2,000 1,870,000
TENNESSEE - 3.10%
Memphis-Shelby County Airport Authority,
Special Facilities Revenue Bonds,
Series 1993 (Federal Express Corporation),
6.2%, 7-1-2014 ........................ 3,000 2,752,500
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 1,498,125
Industrial Development Revenue Bonds, Series
1986 (Shoney's Inn of Opryland Project),
10.0%, 12-1-2016 ...................... 1,100 1,119,250
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 2,070,000
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 1,942,500
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
TENNESSEE (Continued)
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 $ 1,307,625
Total ................................. 10,690,000
TEXAS - 4.43%
Alliance Airport Authority, Inc., Special
Facilities Revenue Bonds, Series 1991
(American Airlines, Inc. Project),
7.0%, 12-1-2011 ....................... 4,500 4,297,500
Retama Development Corporation, Special
Facilities Revenue Bonds (Retama Park
Racetrack Project), Series 1993,
8.75%, 12-15-2018 ..................... 3,500 3,456,250
Dallas-Fort Worth International Airport
Facility Improvement Corporation, American
Airlines, Inc. Revenue Bonds, Series 1990,
7.5%, 11-1-2025 ....................... 2,000 1,957,500
Dallas County Utility and Reclamation
District, Unlimited Ad Valorem Tax
Refunding Bonds, Series 1993,
0.0%, 2-15-2016 ....................... 7,915 1,889,706
Dallas-Fort Worth International Airport,
Facility Improvement Corporation, Delta
Air Lines, Inc. Revenue Bonds, Series 1994,
7.6%, 11-1-2011........................ 1,300 1,300,000
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 1,260,563
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 1,127,000
Total ................................. 15,288,519
UTAH - 1.25%
Carbon County, Utah, Solid Waste Disposal
Refunding Revenue Bonds, Series 1991
(Sunnyside Cogeneration Associates Project),
9.25%, 7-1-2018 ....................... 2,500 2,615,625
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
UTAH (Continued)
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 $ 1,706,900
Total ................................. 4,322,525
VERMONT - 0.73%
Vermont Industrial Development Authority,
Mortgage Revenue Bonds, Wake Robin
Corporation Project, Series 1993A,
8.75%, 3-1-2023 ....................... 2,500 2,518,750
VIRGIN ISLANDS - 0.41%
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 1,431,500
VIRGINIA - 1.37%
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 2,681,250
Virginia Housing Development Authority,
Commonwealth Mortgage Bonds:
1988 Series C, Subseries C-2,
8.0%, 1-1-2038 ........................ 1,000 1,025,000
1988 Series B, Subseries B-5,
7.8%, 7-1-2008 ........................ 1,000 1,020,000
Total ................................. 4,726,250
WASHINGTON - 0.26%
Stevens County Public Corporation, Pollution
Control Revenue Refunding Bonds (The
Washington Water Power Company Kettle
Falls Project), Series 1993,
6.0%, 12-1-2023 ....................... 1,000 892,500
See Notes to Schedule of Investments on page 24.
<PAGE>
THE INVESTMENTS OF
UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1994
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
WEST VIRGINIA - 0.60%
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 $ 2,067,500
WYOMING - 0.71%
Sweetwater County, Wyoming, Solid Waste
Disposal Revenue Bonds (FMC Corporation
Project), Series 1994B,
6.9%, 9-1-2024 ........................ 2,500 2,453,125
TOTAL MUNICIPAL BONDS - 94.92% $327,645,531
(Cost: $327,129,369)
TOTAL SHORT-TERM SECURITIES - 4.35% $ 14,998,560
(Cost: $14,998,560)
TOTAL INVESTMENT SECURITIES - 99.27% $342,644,091
(Cost: $342,127,929)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.73% 2,517,765
NET ASSETS - 100.00% $345,161,856
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
SEPTEMBER 30, 1994
Assets
Investment securities - at value
(Notes 1 and 3) ................................. $342,644,091
Cash ............................................. 10,125
Receivables:
Interest ........................................ 6,878,454
Investment securities sold ...................... 4,079,125
Fund shares sold ................................ 866,787
Prepaid insurance premium ........................ 13,612
------------
Total assets .................................. 354,492,194
------------
Liabilities
Payable for investment securities purchased ...... 8,069,296
Payable for Fund shares redeemed ................. 967,321
Dividends payable ................................ 186,875
Accrued service fee .............................. 66,289
Accrued transfer agency and dividend disbursing .. 22,685
Accrued accounting services fee .................. 4,167
Other ............................................ 13,705
------------
Total liabilities ............................. 9,330,338
------------
Total net assets ............................. $345,161,856
============
Net Assets
$1.00 par value capital stock, authorized --
100,000,000; shares outstanding -- 67,365,646
Capital stock ................................... $ 67,365,646
Additional paid-in capital ...................... 275,905,442
Accumulated undistributed gain:
Accumulated undistributed net realized
gain on investment transactions ............... 1,374,606
Net unrealized appreciation in value of
investments at end of period .................. 516,162
------------
Net assets applicable to outstanding
units of capital ............................. $345,161,856
============
Net asset value per share (net assets divided
by shares outstanding) ........................... $5.12
Sales load (offering price x 4.25%)................. .23
-----
Offering price (net asset value divided by 95.75%).. $5.35
=====
On sales of $100,000 or more the sales load is reduced as set forth in the
Prospectus.
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL HIGH INCOME FUND, INC.
STATEMENT OF OPERATIONS
For the Fiscal Year Ended SEPTEMBER 30, 1994
Investment Income
Interest (taxable portion - $163,691) ............ $24,334,359
-----------
Expenses (Note 2):
Investment management fee ....................... 1,756,750
Service fee ..................................... 310,860
Transfer agency and dividend disbursing ......... 280,665
Accounting services fee ......................... 50,000
Audit fees ...................................... 30,450
Custodian fees .................................. 23,325
Legal fees ...................................... 16,255
Other ........................................... 120,894
-----------
Total expenses ................................ 2,589,199
-----------
Net investment income ........................ 21,745,160
-----------
Realized and Unrealized Gain (Loss) on Investments
Realized net gain on investments ................. 1,527,051
Unrealized depreciation in value of investments
during the period ............................... (22,927,131)
-----------
Net loss on investments ......................... (21,400,080)
-----------
Net increase in net assets
resulting from operations .................... $ 345,080
===========
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL HIGH INCOME FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the fiscal year
ended September 30,
-------------------------
1994 1993
------------ ------------
Increase in Net Assets
Operations:
Net investment income ...............$ 21,745,160 $ 18,845,213
Realized net gain on investments .... 1,527,051 5,051,945
Unrealized appreciation
(depreciation) .................... (22,927,131) 14,102,680
------------ ------------
Net increase in net assets
resulting from operations ........ 345,080 37,999,838
------------ ------------
Dividends to shareholders from:*
Net investment income ............... (21,745,160) (18,845,213)
Realized net gain from investment
transactions ...................... (4,619,821) (2,193,823)
------------ ------------
(26,364,981) (21,039,036)
------------ ------------
Capital share transactions:
Proceeds from sale of shares
(10,978,008 and 11,521,464 shares,
respectively) ..................... 58,602,026 61,425,292
Proceeds from reinvestment of
dividends and/or capital gains
distribution (4,126,763 and 3,220,064
shares, respectively) ............. 21,969,625 17,133,052
Payments for shares redeemed
(7,325,581 and 5,063,005 shares,
respectively) ..................... (38,763,374) (26,922,626)
------------ ------------
Net increase in net assets
resulting from capital
share transactions ............... 41,808,277 51,635,718
------------ ------------
Total increase ................... 15,788,376 68,596,520
Net Assets
Beginning of period .................. 329,373,480 260,776,960
------------ ------------
End of period ........................$345,161,856 $329,373,480
============ ============
Undistributed net investment
income ............................ $--- $---
==== ====
*See "Financial Highlights" on page 28.
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 fiscal year ended
September 30,
------------------------------------
1994 1993 1992 1991 1990
------ ------ ------ ------ ------
Net asset value,
beginning of
period ........... $5.53 $5.23 $5.05 $4.85 $4.96
----- ----- ----- ----- -----
Income from investment
operations:
Net investment
income........... .34 .35 .36 .38 .39
Net realized and
unrealized gain
(loss) on
investments ..... (0.34) .34 .18 .20 (0.11)
----- ----- ----- ----- -----
Total from investment
operations ....... 0.00 .69 .54 .58 .28
----- ----- ----- ----- -----
Less distributions:
Dividends declared from
net investment
income .......... (0.34) (0.35) (0.36) (0.38) (0.39)
Distribution from
capital gains ... (0.07) (0.04) .00 .00 .00
----- ----- ----- ----- -----
Total distributions. (0.41) (0.39) (0.36) (0.38) (0.39)
----- ----- ----- ----- -----
Net asset value, end
of period ........ $5.12 $5.53 $5.23 $5.05 $4.85
===== ===== ===== ===== =====
Total return* ...... 0.05% 13.77% 11.08% 12.35% 5.89%
Net assets, end
of period (000
omitted) .......... $345,162$329,373$260,777$224,945$192,440
Ratio of expenses to
average net
assets ........... 0.76% 0.70% 0.72% 0.77% 0.75%
Ratio of net investment
income to average
net assets ....... 6.39% 6.49% 7.08% 7.63% 7.97%
Portfolio turnover
rate ............. 26.26% 26.13% 54.18% 60.83% 27.31%
*Total return calculated without taking into account the sales load deducted on
an initial purchase.
See notes to financial statements.
<PAGE>
UNITED MUNICIPAL HIGH INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 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 September 30, 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 $11.2 billion of
combined net assets at September 30, 1994) at annual rates of .51% of the first
$750 million of combined net assets, .49% on that amount between $750 million
and $1.5 billion, .47% between $1.5 billion and $2.25 billion, .45% between
$2.25 billion and $3 billion, .43% between $3 billion and $3.75 billion, .40%
between $3.75 billion and $7.5 billion, .38% between $7.5 billion and $12
billion, and .36% of that amount over $12 billion. The Fund accrues and pays
this fee daily.
Pursuant to assignment of the Investment Management Agreement between the
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
$1,486,258, out of which W&R paid sales commissions of $836,974 and all expenses
in connection with the sale of Fund shares, except for registration fees and
related expenses.
Under a Service Plan adopted by the Fund pursuant to Rule 12b-1 under the
Investment Company Act of 1940, the Fund may pay monthly a fee to W&R in an
amount not to exceed .25% of the Fund's average annual net assets. The fee is
to be paid to reimburse W&R for amounts it expends in connection with the
provision of personal services to Fund shareholders and/or maintenance of
shareholder accounts.
The Fund paid Directors' fees of $12,320.
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 $117,232,226, while proceeds from maturities and
sales aggregated $86,678,656. Purchases of short-term securities aggregated
$119,198,168, while proceeds from maturities and sales aggregated $112,431,990.
No U.S. Government securities were bought or sold during the period ended
September 30, 1994.
For Federal income tax purposes, cost of investments owned at September 30,
1994 was $342,127,929, resulting in net unrealized appreciation of $516,162, of
which $8,822,996 related to appreciated securities and $8,306,834 related to
depreciated securities.
NOTE 4 -- Federal Income Tax Matters
For Federal income tax purposes, the Fund realized capital gain net income
of $1,527,051 during the year ended September 30, 1994, of which a portion was
paid to shareholders during the period ended september 30, 1994. Remaining net
capital gains will be distributed to the Fund's 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 September 30, 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 September 30, 1994 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
Kansas City, Missouri
October 31, 1994
<PAGE>
INCOME TAX INFORMATION
Dividends are declared and recorded by the Fund on each day the New York Stock
Exchange is open for business. Dividends are paid monthly on the 27th of the
month or on the preceding business day if the 27th is a weekend or holiday.
Exempt Interest Dividends - The exempt interest portion of dividends paid
represents the distribution of state and municipal bond interest and is exempt
from Federal income taxation.
The table below shows the taxability of dividends paid during the fiscal year
ended September 30, 1994:
PERCENTAGE AMOUNTS REPORTABLE AS:
- ----------------------------------------------------------------------------
For Individuals For Corporations
- --------------------------------------------------------------------------
RecordOrdinary Exempt Long-Term Non- Exempt Long-Term
Date IncomeInterest Capital GainQualifyingInterestCapital Gain
- ------------------------------------------------------------------------
October
through
December
1993 0.7861% 99.2139% 0.0000% 0.7861% 99.2139% 0.0000%
December 1993
Security Profit
Distribu-
tion 27.1817 0.0000 72.8183 27.1817 0.0000 72.8183
January
through
September
1994 1.0929 98.9071 0.0000 1.0929 98.9071 0.0000
NON-QUALIFYING DIVIDENDS - The non-qualifying portion of distributions
represents the taxable portion of dividends paid and does not qualify for the
dividends received deduction for corporations.
The actual taxable amounts of dividends will be reported to you on Form 1099-DIV
after the close of the applicable calendar year.
Income from the Fund may be subject to the alternative minimum tax.
Shareholders are advised to consult with their tax advisors concerning the tax
treatment of dividends and distributions from the Fund.
<PAGE>
DIRECTORS
Ronald K. Richey, Birmingham, Alabama, Chairman of the Board
Henry L. Bellmon, Red Rock, Oklahoma
Dodds I. Buchanan, Boulder, Colorado
Jay B. Dillingham, Kansas City, Missouri
John F. Hayes, Hutchinson, Kansas
Glendon E. Johnson, Miami, Florida
William T. Morgan, Los Angeles, California
Doyle Patterson, Kansas City, Missouri
Keith A. Tucker, Overland Park, Kansas
Frederick Vogel, III, Milwaukee, Wisconsin
Paul S. Wise, Carefree, Arizona
Leslie S. Wright, Birmingham, Alabama
OFFICERS
Keith A. Tucker, President
Robert L. Hechler, Vice President
Henry J. Herrmann, Vice President
John M. Holliday, Vice President
Theodore W. Howard, Vice President and Treasurer
Sharon K. Pappas, Vice President and Secretary
Carl E. Sturgeon, Vice President
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>
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
NUR1014A(9-94)
printed on recycled paper
