United
Municipal
High Income
Fund, Inc.
ANNUAL
REPORT
--------------------------------------------
For the fiscal year ended September 30, 1999
(PAGE)
MANAGER'S LETTER
-----------------------------------------------------------------
SEPTEMBER 30, 1999
Dear Shareholder:
This report relates to the operation of United Municipal High Income Fund,
Inc. for the fiscal year ended September 30, 1999. The discussion, graphs
and tables contained in this report will provide you with information
regarding the Fund's performance during that period.
The accommodative monetary conditions that we saw last year, with central
banks around the world easing, have largely come to an end. The Federal
Reserve and the Central Bank in the United Kingdom have already tightened
and others appear ready to follow suit. As the global economic recovery
has gathered pace, commodity prices have risen. In the U.S., tight labor
markets and robust consumer spending have brought about a moderate, but
worrisome, trend in inflation. The goal of the Fed is to maintain price
stability, which in the current economic environment places the emphasis on
preemptively suppressing inflation pressures by raising interest rates.
Such Fed action tends to be positive in the long term for the economy and
interest rates, but can lead to short-term volatility and a heightened
level of nervousness in the market.
We, along with most economists, did not expect the U.S. economy to expand
as rapidly as it did. The global inflation picture was very unclear, with
upticks in some commodity and financial asset markets offset by very low
and, in some instances, disinflationary readings in other measures of
inflation. As monetary stimulation ceased and interest rates rose off last
year's lows, we expected the economy to slow. We felt that the high level
of Y2K uncertainty, and belief in U.S. preparedness relative to other
nations, presented a logical backdrop for an increase in foreign capital
flows to the relative safety of the U.S. Treasury market. We expected that
this anticipated flight to quality would benefit municipal bonds to some
degree, but possibly not until the fourth quarter of 1999. We therefore
saw no reason to adjust the portfolio for a major rise in yields. However,
very strong consumer confidence and low unemployment continued to drive our
economy and now the world economy is also accelerating. Y2K has caused
some distortions in the timing of bond issuance, with more bonds sold
recently and a slowdown expected as we approach year end. Also, some
investors have shown a preference for Treasury bonds versus other bonds.
We feel this has created a buying opportunity and that prices should revert
to normal relationships after year end.
The strategies and techniques we applied resulted in the Fund's performance
during the fiscal year exceeding that of the Lipper High Yield Municipal
Bond Fund Universe Average (reflecting the performance of the universe of
funds with similar investment objectives) and below that of the Lehman
Brothers Municipal Bond Index (reflecting the performance of securities
that generally represent the municipal bond market). Both indexes are
charted on the following page. The unexpected increases in interest rates
negatively impacted the Fund's performance. Because the Fund remained
generally fully invested due to the anticipated interest rate environment,
the Fund was unable to fully take advantage of investment opportunities
resulting from the higher interest rates.
Interest rates could go slightly higher as the Fed protects against
threatened inflation. We expect that the Federal Reserve will contain
inflationary pressures. When it is clear to the markets that this is the
case, Treasury interest rates, now above 6.30%, will prove to be attractive
and more money should flow into all bonds. Municipal bonds are at
historically attractive levels relative to other fixed income alternatives,
and should outperform if yield ratios revert to historical norms. As a
result, we expect to remain fully invested emphasizing current yield.
Thank you for your continued confidence.
Respectfully
John M. Holliday
Manager, United Municipal High Income Fund, Inc.
(PAGE)
Comparison of Change in Value of $10,000 Investment in
United Municipal High Income Fund, Inc. Class A Shares,
The Lehman Brothers Municipal Bond Index
and The Lipper High Yield Municipal Bond Fund Universe Average
Lipper
High Yield
United Lehman Municipal
Municipal Brothers Bond
High IncomeMunicipal Fund
Fund, Inc., Bond Universe
Class A SharesIndex Average
------------------ ----------
09/30/89 Purchase $9,575 $10,000 $10,000
09/30/90 10,139 10,680 10,502
09/30/91 11,391 12,088 11,631
09/30/92 12,653 13,352 12,762
09/30/93 14,396 15,053 14,340
09/30/94 14,403 14,686 14,012
09/30/95 15,935 16,330 15,341
09/30/96 17,115 17,316 16,250
09/30/97 19,076 18,880 17,811
09/30/98 20,961 20,525 19,287
09/30/99 20,705 20,381 18,985
==== United Municipal High Income Fund, Inc., Class A Shares*--
$20,705
++++ Lehman Brothers Municipal Bond Index -- $20,381
---- Lipper High Yield Municipal Bond Fund Universe Average - $18,985
*The value of the investment in the Fund is impacted by the sales load at
the time of the investment and by the ongoing expenses of the Fund.
Annual Average Total Return +
Class A++ Class Y
-----------------------------
Year Ended
9/30/99 -5.42% N/A
5 Years Ended
9/30/99 6.60% N/A
10 Years Ended
9/30/99 7.55% N/A
Aggregate Total
Return for Life
of Class Y +++ N/A -1.53%
(partial periods for class Y - how do we handle total return?)
+ Total return for the Class Y shares may be greater than that of the
Class A shares because the Fund's Class Y shares are not subject to a
sales load or 12b-1 fees.
++ Performance data quoted represents past performance and is based on
deduction of a 4.25% sales load on the initial purchase in each of the
three periods. Investment return and principal value will fluctuate
and an investor's shares, when redeemed, may be worth more or less
than their original cost.
+++ 12/30/98 (the date on which Fund Class Y shares were repurchased by
shareholders) through 9/30/99. This period represents the latest for
which Class Y shares were continuously outstanding.
Past performance is not predictive of future performance. Indexes are
unmanaged.
(PAGE)
SHAREHOLDER SUMMARY
--------------------------------------------------------------
United Municipal High Income Fund, Inc.
PORTFOLIO STRATEGY:
Ordinarily, at least 75% OBJECTIVE: To seek a high level of
medium and lower rated income which is not
Municipal Bonds subject to Federal income taxation.
(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
municipal bonds rated in the lower
tier of investment grade (BBB by
Standard & Poor's and Baa by
Moody's Investors Service, Inc.) or
lower, including bonds rated below
investment grade, junk bonds and
lower-quality unrated bonds.
FOUNDED: 1986
SCHEDULED DIVIDEND FREQUENCY: MONTHLY
(PAGE)
PERFORMANCE SUMMARY - Class A Shares
PER SHARE DATA
For the Fiscal Year Ended September 30, 1999
--------------------------------------------
DIVIDENDS PAID $0.31
=====
CAPITAL GAINS DISTRIBUTION $0.13
=====
NET ASSET VALUE ON
9/30/99 $5.19 adjusted to: $5.32(A)
9/30/98 5.69
------
CHANGE PER SHARE $(0.37)
======
(A)This number includes the capital gains distribution of $0.13 paid in
December 1998 added to the actual net asset value on September 30, 1999.
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 9-30-99 -5.42% -1.22%
5-year period ended 9-30-99 6.60% 7.53%
10-year period ended 9-30-99 7.55% 8.02%
*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, 1999, United Municipal High Income Fund, Inc. had net
assets totaling $509,867,048 invested in a diversified portfolio.
As a shareholder of United Municipal High Income Fund, Inc., for every $100
you had invested on September 30, 1999, your Fund owned:
$21.39 Life Care/Nursing Center Revenue Bonds
18.28 Other Municipal Bonds
13.92 Industrial Development Revenue Bonds
8.94 Housing Revenue Bonds
8.71 Hospital Revenue Bonds
6.57 Cash and Cash Equivalents
5.93 Prerefunded ETM Bonds
3.91 Resource Recovery Bonds
3.37 Airport Revenue Bonds
2.84 Transportation Revenue Bonds
2.59 Water and Sewer Revenue Bonds
2.49 General Obligation Bonds
1.06 Lease/Certificates of Participation Bonds
1999 TAX YEAR TAXABLE EQUIVALENT YIELDS*
---------------------------------------------------------------------------
If your Taxable Income is:
Your Equivalent
Marginal Tax Free Yields
Joint Single Tax---------------------------
return Return Bracket Is 5% 6% 7% 8%
$ 0- 43,050 $ 0- 25,750 15% 5.88 7.06 8.24 9.41
$ 43,051-104,050 $ 25,751- 62,450 28% 6.94 8.33 9.72 11.11
$104,051-158,550 $ 62,451-130,250 31% 7.25 8.70 10.14 11.59
$158,551-283,150 $130,251-283,150 36% 7.81 9.38 10.94 12.50
$283,151 and above$283,151 and above 39.6% 8.28 9.93 11.59 13.25
*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, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS
ALABAMA - %0.41
The Marshall County Health Care Authority,
Hospital Revenue Refunding Bonds,
Series 1992 (Guntersville-Arab
Medical Center),
7.0%, 10-1-2013 ....................... $ 1,000 $ 1,048,750
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 1,031,530
Total ................................. 2,080,280
ALASKA - 0.41%
City of Seward, Alaska, Revenue Bonds, 1996
(Alaska Sealife Center Project),
7.65%, 10-1-2016 ...................... 2,000 2,067,500
ARIZONA - 1.48%
The Industrial Development Authority of the
County of Gila, Arizona, Environmental
Revenue Refunding Bonds (ASARCO Incorporated
Project), Series 1998,
5.55%, 1-1-2027 ....................... 4,750 4,269,063
Hayden-Winkelman Unified School District No.
41 of Gila County, Arizona, Capital
Appreciation Refunding Bonds, Series 1995,
0.0%, 7-1-2010 ........................ 6,145 3,302,937
Total ................................. 7,572,000
ARKANSAS - 0.30%
City of Little Rock, Arkansas, Capital
Improvement Revenue Bonds (Parks and
Recreation Projects), Series 1998A,
5.8%, 1-1-2023 ........................ 1,600 1,506,000
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
CALIFORNIA - 5.96%
Foothill/Eastern Transportation Corridor Agency:
Toll Road Refunding Revenue Bonds:
Toll Road Revenue Bonds,
Series 1995A,
0.0%, 1-1-2013 (A) .................... $11,925 $ 10,061,719
Series 1999 Convertible Capital Appreciation Bonds:
0.0%, 1-15-2023 (A) ................... 10,000 5,362,500
0.0%, 1-15-2020 (A) ................... 4,000 2,170,000
California Statewide Communities Development
Authority, Hospital Refunding Revenue Certificates
of Participation, Series 1993, Cedars-Sinai
Medical Center, Inverse Floating Rate
Security (INFLOS),
7.17%, 11-1-2015 (B) .................. 4,000 3,610,000
Sierra Kings Health Care District Revenue
Bonds, Series 1996,
6.5%, 12-1-2026 ....................... 3,000 2,733,750
Transmission Agency of Northern California,
California-Oregon Transmission Project,
Revenue Refunding Bonds, 1993 Series A,
Residual Interest Bonds (RIBS),
7.339%, 4-29-2024 (B) ................. 2,500 2,284,375
Certificates of Participation (1991 Capital
Improvement Project), Bella Vista Water
District (California),
7.375%, 10-1-2017 ..................... 1,500 1,590,000
Carson Redevelopment Agency (California),
Redevelopment Project Area No. 1,
Tax Allocation Bonds, Series 1993B,
6.0%, 10-1-2016 ....................... 1,500 1,524,375
Kings County Waste Management Authority,
Solid Waste Revenue Bonds, Series 1994
(California),
7.2%, 10-1-2014 ....................... 940 1,028,125
Total ................................. 30,364,844
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
COLORADO - 4.01%
City and County of Denver, Colorado,
Revenue Bonds (Jewish Community Centers
of Denver Project), Series 1994:
8.25%, 3-1-2024 ....................... $ 2,390 $ 2,491,575
7.875%, 3-1-2019 ...................... 815 839,450
Hospital Revenue Bonds (Steamboat Springs
Health Care Association Project),
Series 1999,
5.7%, 9-15-2023 ....................... 3,700 3,297,625
Colorado Housing and Finance Authority,
Single Family Program Bonds:
1998 Series A-2 Senior Bonds (AMT),
6.6%, 5-1-2028 ........................ 2,500 2,634,375
1997 Series B-2, Senior Bonds (AMT),
7.0%, 5-1-2026 ........................ 2,250 2,418,750
Sand Creek Metropolitan District, Adams
County and City and County of Denver,
Colorado, General Obligation Limited
Tax Bonds:
Series 1998,
6.625%, 12-1-2017 ..................... 3,070 2,951,038
Series 1997,
7.125%, 12-1-2016 ..................... 2,000 2,025,000
City of Black Hawk, Colorado, Device Tax
Revenue Bonds, Series 1998,
5.625%, 12-1-2021 ..................... 1,250 1,190,625
Bachelor Gulch Metropolitan District,
Eagle County, Colorado, General Obligation
Bonds, Series 1996,
7.0%, 12-1-2015 ....................... 1,095 1,116,900
Eaglebend Affordable Housing Corporation,
Multifamily Housing Project Revenue
Refunding Bonds, Series 1997A,
6.45%, 7-1-2021 ....................... 1,000 1,003,750
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
COLORADO (Continued)
Mountain Village Metropolitan District, San
Miguel County, Colorado, General
Obligation Refunding Bonds, Series 1992,
8.1%, 12-1-2011 ....................... $ 465 $ 501,619
Total ................................. 20,470,707
CONNECTICUT - 1.88%
Eastern Connecticut Resource Recovery
Authority, Solid Waste Revenue Bonds
(Wheelabrator Lisbon Project),
Series 1993A,
5.5%, 1-1-2014 ........................ 5,250 4,895,625
State of Connecticut Health and
Education Facilities Authority,
Revenue Bonds, Edgehill Issue
Series A (Fixed Rate),
6.875%, 7-1-2027 ...................... 2,300 2,363,250
Connecticut Development Authority, Pollution
Control Revenue Refunding Bonds (The
Connecticut Light and Power Company
Project - 1993B Series),
5.95%, 9-1-2028 ....................... 2,500 2,337,500
Total ................................. 9,596,375
DISTRICT OF COLUMBIA - 1.06%
Certificates of Participation, Series 1993,
District of Columbia,
7.3%, 1-1-2013 ........................ 3,000 3,225,000
District of Columbia Revenue Bonds
(National Public Radio Issue),
Series 1992,
7.625%, 1-1-2013 ...................... 2,000 2,160,000
Total ................................. 5,385,000
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
FLORIDA - 4.16%
St. Johns County Industrial Development
Authority (Florida):
Health Care Revenue Bonds, Tax Exempt
Series 1997A (Bayview Project),
7.1%, 10-1-2026 ....................... $ 4,000 $ 4,255,000
Industrial Development Revenue Bonds,
Series 1997A (Professional Golf Hall of
Fame Project),
5.5%, 3-1-2017 ........................ 1,000 986,250
Lake County, Florida, Resource Recovery
Industrial Development Refunding Revenue
Bonds (NRG/Recovery Group Project),
Series 1993A,
5.95%, 10-1-2013 ...................... 4,850 4,831,812
Sanford Airport Authority (Florida),
Industrial Development Revenue Bonds
(Central Florida Terminals, Inc. Project):
Series 1995A,
7.75%, 5-1-2021 ....................... 4,000 4,295,000
Series 1995C,
7.5%, 5-1-2021 ........................ 500 531,875
Sarasota County (Florida) Health Facilities
Authority, Health Care Facilities Revenue
Refunding Bonds, Series 1995 (Sarasota-
Manatee Jewish Housing Council, Inc.
Project),
6.7%, 7-1-2025 ........................ 3,000 3,060,000
Dade County Industrial Development Authority,
Industrial Development Revenue Bonds,
Series 1995 (Miami Cerebral Palsy
Residential Services, Inc. Project),
8.0%, 6-1-2022 ........................ 1,900 1,992,625
City of Fort Walton Beach, First Mortgage
Industrial Development Revenue Bonds,
Series 1986 (Ft. Walton Beach Ventures,
Inc. Project),
10.5%, 12-1-2016 ...................... 1,240 1,277,200
Total ................................. 21,229,762
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
GEORGIA - 1.59%
Coffee County Hospital Authority (Georgia),
Revenue Anticipation Certificates (Coffee
Regional Medical Center, Inc. Project),
Series 1997A,
6.75%, 12-1-2016 ...................... $ 5,000 $ 5,075,000
Savannah Economic Development Authority,
First Mortgage Revenue Bonds (Senior Care
Group, Inc. - Shadowmoss Project),
Series 1999A,
6.75%, 7-1-2029 ....................... 3,185 3,017,788
Total ................................. 8,092,788
HAWAII - 0.52%
Department of Transportation of the State
of Hawaii, Special Facility Revenue Bonds
(Continental Airlines, Inc.), Series 1997,
5.625%, 11-15-2027 .................... 3,000 2,651,250
IDAHO - 0.44%
Idaho Health Facilities Authority, Hospital
Revenue Refunding Bonds, Series 1992
(IHC Hospitals, Inc.), Indexed Inverse Floating
Rate Securities (Indexed INFLOS),
6.65%, 2-15-2021 (B) .................. 2,000 2,220,000
ILLINOIS - 3.40%
Illinois Health Facilities Authority:
Revenue Refunding Bonds, Series
1995A (Fairview Obligated Group),
7.125%, 8-15-2017 ..................... 3,525 3,736,500
Revenue Refunding Bonds, Series 1998
(Lifelink Corporation Obligated Group),
5.7%, 2-15-2024 ....................... 1,750 1,594,687
City of Hillsboro, Montgomery County,
Illinois, General Obligation Bonds
(Alternate Revenue Source), Series 1991,
7.5%, 12-1-2021 ....................... 2,640 2,814,900
Illinois Development Finance Authority
Revenue Bonds, Series 1993C (Catholic
Charities Housing Development
Corporation Project),
6.1%, 1-1-2020 ........................ 2,500 2,471,875
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
ILLINOIS (Continued)
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 $ 2,135,000
Village of Hodgkins, Cook County, Illinois,
Tax Increment Revenue Refunding Bonds,
Series 1995A,
7.625%, 12-1-2013 ..................... 1,750 1,881,250
Village of Carol Stream, DuPage County,
Illinois, First Mortgage Revenue
Refunding Bonds, Series 1997 (Windsor
Park Manor Project),
7.0%, 12-1-2013 ....................... 1,500 1,541,250
Village of Bourbonnais, Kankakee County,
Illinois, Sewerage Revenue Bonds,
Series 1993,
7.25%, 12-1-2012 ...................... 1,085 1,136,538
Total ................................. 17,312,000
INDIANA - 2.73%
Indiana Health Facility Financing Authority:
Hospital Revenue Bonds (Charity Obligated
Group), Series 1999D,
5.5%, 11-15-2024 ...................... 5,000 4,706,250
Revenue Refunding Bonds, Series 1998
(Greenwood Village South Project),
5.625%, 5-15-2028 ..................... 4,100 3,628,500
Hospital Revenue Refunding Bonds, Series 1996
(Hancock Memorial Hospital and Health Services),
6.125%, 8-15-2017 ..................... 1,250 1,235,937
Hospital Revenue Bonds, Series 1992
(Fayette Memorial Hospital Project),
7.2%, 10-1-2022 ....................... 1,000 1,053,750
City of Goshen, Indiana, Revenue Bonds,
Series 1998 (Greencroft Obligated Group),
5.75%, 8-15-2028 ...................... 2,000 1,792,500
City of Carmel, Indiana, Retirement Rental
Housing Revenue Refunding Bonds (Beverly
Enterprises - Indiana, Inc. Project),
Series 1992,
8.75%, 12-1-2008 ...................... 1,400 1,513,750
Total ................................. 13,930,687
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
IOWA - 2.90%
Iowa Finance Authority:
Community Provider Revenue Bonds (Boys and
Girls Home and Family Services, Inc. Project),
Series 1998,
6.25%, 12-1-2028 ...................... $ 4,000 $ 3,715,000
Community Rehabilitation Providers
Revenue Bonds (Lutheran Children's Home
Society - Bremwood Project), Series 1998,
5.8%, 12-1-2024 ....................... 1,500 1,411,875
City of Creston, Iowa, Industrial Development
Revenue Bonds, Series 1997A (CF Processing,
L.C. Project),
8.0%, 8-1-2026 ........................ 5,000 5,062,500
City of Cedar Rapids, Iowa, First Mortgage
Revenue Bonds, Series 1998-A (Cottage Grove
Place Project),
5.875%, 7-1-2028 ...................... 5,000 4,606,250
Total ................................. 14,795,625
KANSAS - 3.57%
Kansas Development Finance Authority:
Revenue Bonds (Village Shalom Obligated Group),
Series 1998 AA,
5.625%, 11-15-2028 .................... 5,500 4,860,625
Multifamily Housing Revenue Bonds, Series 1998K
(Pioneer Olde Town Apartments Project),
6.5%, 10-1-2030 ....................... 3,200 2,972,000
Community Provider Loan Program (Community
Living Opportunities, Inc.), Series
1992A Revenue Bonds,
8.875%, 9-1-2011 ...................... 2,790 2,912,063
Certificates of Participation, Series 1998A,
Evidencing Proportionate Interests of the
Owners Thereof in Rental Payments to be
Made by the City of Spring Hill, Kansas, to
Spring Hill Golf Corporation,
6.5%, 1-15-2028 ....................... 4,000 3,650,000
City of Prairie Village, Kansas, Revenue Bonds,
(Claridge Court Project), Series 1993A:
8.75%, 8-15-2023 ...................... 1,000 1,111,250
8.5%, 8-15-2004 ....................... 770 854,700
City of Wichita, Kansas, Health Care Facilities
Refunding and Improvement Revenue Bonds,
Series I, 1999 (Larksfield Place),
5.875%, 5-15-2027 ..................... 2,000 1,855,000
Total ................................. 18,215,638
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
KENTUCKY - 0.91%
Kentucky Economic Development Finance Authority,
Health Care Facilities Revenue Bonds, Series
1998 (The Christian Church Homes of Kentucky,
Inc. Obligated Group),
5.5%, 11-15-2030 ...................... $ 4,000 $ 3,580,000
County of Perry, Kentucky, Solid Waste
Disposal Revenue Bonds (TJ International
Project), Series 1994,
7.0%, 6-1-2024 ........................ 1,000 1,055,000
Total ................................. 4,635,000
LOUISIANA - 1.34%
Louisiana Public Facilities Authority:
Revenue Bonds (Progressive Healthcare
Providers/Louisiana, Inc. Project), Series 1998:
6.375%, 10-1-2020 ..................... 2,000 1,865,000
6.375%, 10-1-2028 ..................... 2,000 1,832,500
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 1,992,500
LaFourche Parish Home Mortgage Authority,
Tax-Exempt Capital Appreciation Refunding
Bonds, Series 1990-B, Class B-2,
0.0%, 5-20-2014 ....................... 3,300 1,167,375
Total ................................. 6,857,375
MAINE - 0.55%
Maine Veterans' Homes, Revenue Bonds,
1995 Series,
7.75%, 10-1-2020 ...................... 2,810 2,820,537
MARYLAND - 0.66%
Maryland Economic Development Corporation,
Senior Lien Revenue Bonds (Rocky Gap
Golf Course and Hotel/Meeting Center
Project), Series 1996 A,
8.375%, 10-1-2009 ..................... 3,250 3,347,500
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MASSACHUSETTS - 6.38%
Massachusetts Industrial Finance Agency:
First Mortgage Revenue Bonds, Reeds
Landing Project, Series 1993,
8.625%, 10-1-2023 ..................... $ 9,945 $ 10,976,794
Resource Recovery Revenue Bonds (SEMASS
Project), Series 1991B,
9.25%, 7-1-2015 ....................... 5,000 5,456,250
Resource Recovery Revenue Refunding Bonds
(Ogden Haverhill Project),
Series 1998A Bonds,
5.6%, 12-1-2019 ....................... 2,500 2,384,375
Revenue Bonds, Beaver Country Day School
Issue, Series 1992, Subseries A,
8.1%, 3-1-2008 ........................ 1,320 1,359,600
Massachusetts Municipal Wholesale Electric
Company, Power Supply System Revenue Bonds,
1993 Series A, Inverse Floating Rate
Security (INFLOS),
7.17%, 7-1-2018 (B) ................... 8,000 7,310,000
Massachusetts Health and Educational
Facilities Authority, Revenue Bonds,
Beth Israel Hospital Issue, Series G-4,
Inverse Floating Rate Securities (INFLOS),
8.674%, 7-1-2025 (B) .................. 5,000 5,037,500
Total ................................. 32,524,519
MINNESOTA - 0.87%
City of Victoria, Minnesota, Private School
Facility Revenue Bonds (Holy Family Catholic
High School Project), Series 1999A,
5.85%, 9-1-2024 ....................... 3,200 3,052,000
City of Coon Rapids, Minnesota, Multifamily
Housing Revenue Bonds (Wedum Redwood
Terrace, LLC Project), Series 1999A,
6.375%, 11-1-2029 ..................... 1,450 1,402,875
Total ................................. 4,454,875
MISSISSIPPI - 0.43%
Lowndes County, Mississippi, Solid Waste
Disposal and Pollution Control Refunding
Revenue Bonds (Weyerhaeuser Company
Project), Series 1992B, Indexed Inverse
Floating/Fixed Term Bonds,
6.7%, 4-1-2022 ........................ 2,000 2,195,000
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MISSOURI - 5.54%
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 ....................... $ 4,340 $ 4,860,800
8.25%, 4-1-2002 ....................... 345 363,113
The Industrial Development Authority of the
City of Kansas City, Missouri:
Revenue Bonds (The Bishop Spencer Place,
Incorporated Project), Series 1994,
8.0%, 9-1-2016 ........................ 2,965 3,168,844
Multifamily Housing Revenue Bonds (Village
Green Apartments Project), Series 1998,
6.25%, 4-1-2030 ....................... 1,750 1,634,062
The Industrial Development Authority of the
City of Bridgeton, Missouri, Senior Housing
Revenue Bonds (The Sarah Community Project),
Series 1998,
5.9%, 5-1-2028 ........................ 5,000 4,631,250
Missouri Housing Development Commission,
Multifamily Housing Revenue Bonds (The Mansion
Apartments Phase II Project), Series 1999,
6.17%, 10-1-2032 ...................... 3,915 3,645,844
Tax Increment Financing Commission of Kansas City,
Missouri, Tax Increment Refunding and Improvement
Revenue Bonds (Briarcliff West Project),
Series 1999,
6.0%, 8-1-2021 ........................ 2,250 2,134,688
The Industrial Development Authority of
St. Joseph, Missouri, Multifamily Housing
Revenue Bonds (Hillcrest Village Apartments
Project), Series 1998A,
6.375%, 9-1-2028 ...................... 2,250 2,089,687
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 2,155,000
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
MISSOURI (Continued)
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 $ 1,599,375
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 ..................... 1,015 1,022,856
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 ....................... 900 949,221
Total ................................. 28,254,740
NEVADA - 0.52%
Reno-Sparks Convention & Visitors Authority,
Nevada, Limited Obligation Medium-Term
Refunding Bonds, Series November 1, 1996,
6.0%, 11-1-2006 ....................... 2,640 2,636,700
NEW HAMPSHIRE - 1.11%
State of New Hampshire, Turnpike System Revenue
Bonds, 1994 Series C, Residual Interest Bonds (RIBS),
6.351%, 2-1-2024 (B) .................. 5,600 4,676,000
Lisbon Regional School District, New
Hampshire, General Obligation Capital
Appreciation School Bonds,
0.0%, 2-1-2013 ........................ 1,500 965,625
Total ................................. 5,641,625
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NEW JERSEY - 1.88%
First Mortgage Revenue Fixed Rate Bonds
(Winchester Gardens at Ward Homestead
Project) Series 1996A,
8.625%, 11-1-2025 ..................... $ 3,000 $ 3,348,750
New Jersey Economic Development Authority:
Senior Mortgage Revenue and Revenue Refunding
Bonds (Arbor Glen of Bridgewater Project),
Series 1998A,
6.0%, 5-15-2028 ....................... 3,250 3,050,938
Economic Development Bonds, Kapkowski
Road Landfill Reclamation Improvement
District Project (City of Elizabeth),
Series 1998A:
6.375%, 4-1-2018 ...................... 2,385 2,390,962
0.0%, 4-1-2011 ........................ 1,740 819,975
Total ................................. 9,610,625
NEW MEXICO - 0.71%
City of Santa Fe, New Mexico, Industrial Revenue
Housing Refunding Bonds (Ponce de Leon Limited
Partnership Project), Series 1995,
7.25%, 12-1-2005 ...................... 3,500 3,644,375
NEW YORK - 1.37%
Tompkins County Industrial Development
Agency, Life Care Community Revenue Bonds,
1994 (Kendal at Ithaca, Inc. Project),
7.875%, 6-1-2024 ...................... 4,035 4,251,881
New York City Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, Inverse
Rate Securities, Fiscal 1994 Series E,
7.06%, 6-15-2012 (B) .................. 2,750 2,732,813
Total.................................. 6,984,694
NORTH CAROLINA - 0.94%
City of Charlotte, North Carolina, Charlotte/
Douglas International Airport, Special
Facility Refunding Revenue Bonds, Series 1998
(US Airways, Inc. Project),
5.6%, 7-1-2027 ........................ 3,075 2,609,906
City of Durham, North Carolina, Multifamily
Housing Revenue Bonds (Ivy Commons Project),
Series 1997,
8.0%, 3-1-2029 ........................ 2,250 2,193,750
Total ................................. 4,803,656
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
NORTH DAKOTA - 0.66%
City of Grand Forks, North Dakota, Senior
Housing Revenue Bonds (4000 Valley
Square Project), Series 1997:
6.25%, 12-1-2034 ...................... $ 2,000 $ 1,917,500
6.375%, 12-1-2034 ..................... 1,500 1,445,625
Total ................................. 3,363,125
OHIO - 1.85%
Ohio Water Development Authority, State of
Ohio, Solid Waste Disposal Revenue Bonds
(Bay Shore Power Project), Tax-Exempt
Series 1998 A,
5.875%, 9-1-2020 ...................... 6,000 5,677,500
City of Toledo, Ohio, Multifamily Housing
Mortgage Revenue Bonds, Series 1998-A
(Hillcrest Apartments Project),
6.125%, 12-1-2029 ..................... 4,000 3,750,000
Total ................................. 9,427,500
OKLAHOMA - 2.57%
Bixby Public Works Authority, Utility
System Revenue Bonds, Refunding
Series 1994,
7.25%, 11-1-2019 ...................... 2,685 2,809,181
The Clinton Public Works Authority,
Refunding and Improvement Revenue
Bonds, Series 1994,
6.25%, 1-1-2019 ....................... 2,575 2,652,250
Oklahoma County Industrial Authority,
Industrial Development Revenue Bonds:
1986 Series A (Westlake Nursing Center
Project):
10.25%, 9-1-2016 ...................... 905 919,616
10.125%, 9-1-2006 ..................... 430 436,979
1986 Series B (Choctaw Nursing
Center Project):
10.25%, 9-1-2016 (C) .................. 1,230 713,400
10.125%, 9-1-2006 (C) ................. 525 304,500
The Broken Arrow Public Golf Authority
(Broken Arrow, Oklahoma), Recreational
Facilities Revenue Bonds, Series 1995,
7.25%, 8-1-2020 ....................... 2,025 2,068,031
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
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 $ 1,706,000
The Guthrie Public Works Authority
(Guthrie, Oklahoma), Utility System
Revenue Bonds, Series 1994A,
6.75%, 9-1-2019 ....................... 1,415 1,476,906
Total ................................. 13,086,863
OREGON - 2.21%
Klamath Falls Intercommunity Hospital
Authority, Gross Revenue Bonds,
Series 1994 (Merle West Medical Center
Project),
7.1%, 9-1-2024 ........................ 3,500 3,692,500
City of Klamath Falls, Oregon, Tax-Exempt
Senior Lien Electric Revenue Refunding
Bonds (Klamath Cogeneration Project),
Series 1999,
6.0%, 1-1-2025 ........................ 3,000 2,838,750
Myrtle Creek Building Authority, Gross
Revenue Bonds, Series 1996A (Myrtle Creek
Golf Course Project),
8.0%, 6-1-2021 (C) .................... 3,000 2,550,000
Hospital Facility Authority of Clackamas
County, Oregon, Senior Living Facility
Revenue Bonds (Mary's Woods at Marylhurst,
Inc. Project), Series 1999A Fixed Rate
Revenue Bonds,
6.625%, 5-15-2029 ..................... 2,250 2,196,563
Total ................................. 11,277,813
PENNSYLVANIA - 5.38%
Monroeville Hospital Authority, Hospital
Revenue Bonds, Series of 1992 (Forbes
Health System):
7.0%, 10-1-2013 ....................... 3,630 3,593,700
6.25%, 10-1-2015 ...................... 2,110 2,065,163
Delaware County Authority (Pennsylvania),
First Mortgage Revenue Bonds
(Riddle Village Project),
Series 1994,
8.25%, 6-1-2022 ....................... 4,000 4,675,000
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
PENNSYLVANIA (Continued)
Pennsylvania Higher Educational Facilities
Authority (Commonwealth of Pennsylvania),
Revenue Bonds (Allegheny General Hospital),
1991 Series A,
7.125%, 9-1-2007 ...................... $ 3,670 $ 3,647,062
Philadelphia Authority for Industrial
Development, Commercial Development Revenue
Refunding Bonds (Doubletree Guest Suites
Project), Series 1997A,
6.5%, 10-1-2027........................ 3,500 3,543,750
Clearfield Hospital Authority, Hospital
Revenue and Refunding Bonds (Clearfield
Hospital Project), Series 1994,
6.875%, 6-1-2016 ...................... 3,350 3,458,875
Allentown Area Hospital Authority, Hospital
Revenue Bonds (Sacred Heart Hospital of
Allentown), Series A of 1993,
6.75%, 11-15-2014 ..................... 2,865 3,004,669
Susquehanna Area Regional Airport Authority,
Airport Facilities Revenue Bonds (Aero
Harrisburg, LLC Project), Series 1999,
5.5%, 1-1-2024 ........................ 2,000 1,760,000
South Wayne County Water and Sewer Authority
(Wayne County, Pennsylvania), Sewer Revenue
Bonds, Series of 1992,
8.2%, 4-15-2013 ....................... 1,665 1,698,300
Total ................................. 27,446,519
RHODE ISLAND - 0.41%
City of Providence, Rhode Island, Special
Obligation Tax Increment Bonds, Series D,
6.65%, 6-1-2016 ....................... 2,000 2,067,500
SOUTH CAROLINA - 2.95%
South Carolina Jobs - Economic Development Authority,
Solid Waste Recycling Facilities Revenue Bonds
(Santee River Rubber Project):
Tax-Exempt Series 1998A,
8.0%, 12-1-2014 ....................... 4,000 3,825,000
Tax-Exempt Series 1998B,
9.0%, 12-1-2011 ....................... 2,460 2,460,000
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
SOUTH CAROLINA (Continued)
Connector 2000 Association, Inc., Toll Road
Revenue Bonds (Southern Connector Project,
Greenville, South Carolina):
Senior Capital Appreciation Bonds, Series 1998B:
0.0%, 1-1-2035 ........................ $17,000 $ 1,508,750
0.0%, 1-1-2036 ........................ 11,000 907,500
Senior Current Interest Bonds, Series 1998A,
5.25%, 1-1-2023 ....................... 2,000 1,735,000
McCormick County, South Carolina, Hospital
Facilities Revenue Refunding and Improvement
Bonds, Series 1997 (McCormick Health Care
Center Project),
7.0%, 3-1-2018 ........................ 2,530 2,485,725
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 2,117,500
Total ................................. 15,039,475
SOUTH DAKOTA - 0.41%
South Dakota Health and Educational
Facilities Authority, Refunding Revenue
Bonds (Westhills Village Retirement
Community Issue), Series 1993,
7.25%, 9-1-2013 ....................... 2,000 2,077,500
TENNESSEE - 0.68%
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 2,075,000
Upper Cumberland Gas Utility District
(of Cumberland County, Tennessee),
Gas System Revenue Bonds, Series 1996,
7.0%, 3-1-2016 ........................ 1,400 1,408,750
Total ................................. 3,483,750
TEXAS - 5.26%
AllianceAirport Authority, Inc., Special
Facilities Revenue Bonds:
Series 1991 (American Airlines, Inc. Project),
7.0%, 12-1-2011 ....................... 4,700 5,181,750
Series 1996 (Federal Express Corporation Project),
6.375%, 4-1-2021 ...................... 4,000 4,035,000
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
TEXAS (Continued)
Lubbock Health Facilities Development Corporation,
Fixed Rate First Mortgage Revenue Bonds
(Carillon, Inc. Project), Series 1999A,
6.5%, 7-1-2019 ........................ $ 6,000 $ 5,737,500
Gulf Coast Waste Disposal Authority, Waste
Disposal Revenue Bonds (Valero Energy
Corporation Project):
Series 1998,
5.6%, 4-1-2032 ........................ 3,490 3,097,375
Series 1999,
5.7%, 4-1-2032 ........................ 2,000 1,802,500
Alvarado Industrial Development Corporation,
Industrial Development Revenue Bonds
(Rich-Mix Products of Texas, Inc. Project),
Series 1996,
7.75%, 3-1-2010 ....................... 2,795 2,774,038
City of Houston, Housing Corporation
No. 1, First Lien Revenue Refunding
Bonds, Series 1996 (6800 Long Drive
Apartments - Section 8 New Construction
Program), Houston, Texas,
6.625%, 2-1-2020 ...................... 2,305 2,264,662
City of Houston, Texas, Airport System
Special Facilities Revenue Bonds
(Continental Airlines, Inc. Terminal
Improvement Projects), Series 1997B,
6.125%, 7-15-2017 ..................... 2,000 1,937,500
Total ................................. 26,830,325
UTAH - 4.86%
Tooele County, Utah, Hazardous Waste
Treatment Revenue Bonds (Union Pacific
Corporation/USPCI, Inc. Project),
Series A,
5.7%, 11-1-2026 ....................... 17,000 15,512,500
Intermountain Power Agency, Power Supply
Revenue Refunding Bonds, 1993 Series A,
Inverse Floating Rate Securities (INFLOS),
7.266%, 7-1-2021 (B) .................. 5,950 5,481,437
Utah Housing Finance Agency, Revenue Bonds
(RHA Community Services of Utah, Inc.
Project), Series 1997A,
6.875%, 7-1-2027 ...................... 2,440 2,446,100
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
UTAH (Continued)
Carbon County, Utah, Solid Waste Disposal
Refunding Revenue Bonds (Sunnyside Cogeneration
Project and Sunnyside Generation, LLC):
Series 1999A,
7.1%, 8-15-2023 ....................... $ 1,270 $ 1,270,000
Series 1999B,
0.0%, 8-15-2024 ....................... 390 64,350
Total ................................. 24,774,387
VERMONT - 2.07%
Vermont Industrial Development Authority,
Mortgage Revenue Bonds, Wake Robin
Corporation Project, Series 1993A:
8.75%, 4-1-2023 ....................... 4,465 5,173,819
8.75%, 3-1-2023 ....................... 2,500 2,896,875
Vermont Economic Development Authority,
Mortgage Revenue Bonds, Wake Robin
Corporation Project, Series 1999A,
6.3%, 3-1-2033 ........................ 2,500 2,493,750
Total ................................. 10,564,444
VIRGINIA - 2.77%
Peninsula Ports Authority of Virginia,
Port Facility Refunding Revenue Bonds
(Ziegler Coal Project), Series 1997 (Non-AMT),
6.9%, 5-2-2022 ........................ 5,000 4,862,500
Norfolk Redevelopment and Housing Authority,
Multifamily Rental Housing Facility
Revenue Bonds, Series 1996 (1016 Limited
Partnership-Sussex Apartments Project),
8.0%, 9-1-2026 ........................ 3,495 3,490,631
Fairfax County Redevelopment and Housing
Authority, Multifamily Housing Revenue
Refunding Bonds (Burke Shire Commons
Apartments Project), Series 1996,
7.6%, 10-1-2036 ....................... 3,000 2,985,000
Pocahontas Parkway Association, Route 895
Connector, Toll Road Revenue Bonds, Senior
Capital Appreciation Bonds, Series 1998B,
0.0%, 8-15-2018 ....................... 9,000 2,778,750
Total ................................. 14,116,881
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Principal
Amount in
Thousands Value
MUNICIPAL BONDS (Continued)
WASHINGTON - 0.95%
Port of Anacortes, Washington, Revenue and
Refunding Bonds, 1998 Series A (AMT),
5.625%, 9-1-2016 ...................... $ 3,790 $ 3,562,600
Housing Authority of the City of Seattle,
Low-Income Housing Assistance Revenue
Bonds, 1995 (GNMA Collateralized Mortgage
Loan - Kin On Project),
7.4%, 11-20-2036 ...................... 1,142 1,279,040
Total ................................. 4,841,640
WEST VIRGINIA - 0.31%
Upshur County, West Virginia, Solid Waste
Disposal Revenue Bonds (TJ International
Project), Series 1995,
7.0%, 7-15-2025 ....................... 1,500 1,586,250
WISCONSIN - 2.06%
Wisconsin Health and Educational Facilities
Authority, Revenue Bonds, Series 1995:
National Regency of New Berlin, Inc.
Project,
8.0%, 8-15-2025 ....................... 4,480 4,894,400
Hess Memorial Hospital Association, Inc.
Project,
7.75%, 11-1-2015 ...................... 3,400 3,740,000
City of Superior, Wisconsin, Water Supply
Facilities Revenue Refunding Bonds
(Superior Water, Light and Power Company
Project), Series 1996,
6.125%, 11-1-2021 ..................... 1,910 1,845,537
Total ................................. 10,479,937
TOTAL MUNICIPAL BONDS - 93.43% $476,365,586
(Cost: $477,745,976)
TOTAL SHORT-TERM SECURITIES - 4.98% $ 25,383,451
(Cost: $25,383,451)
TOTAL INVESTMENT SECURITIES - 98.41% $501,749,037
(Cost: $503,129,427)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.59% 8,118,011
NET ASSETS - 100.00% $509,867,048
See Notes to Schedule of Investments on page 25.
(PAGE)
THE INVESTMENTS OF UNITED MUNICIPAL HIGH INCOME FUND, INC.
SEPTEMBER 30, 1999
Notes to Schedule of Investments
(A) The security does not bear interest for an initial period of time and
subsequently becomes interest bearing.
(B) The interest rate is subject to change periodically and inversely
based upon prevailing market rates. The interest rate shown is the
rate in effect at September 30, 1999.
(C) Non-income producing as the issuer has either missed its most recent
interest payment or declared bankruptcy.
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, 1999
(In Thousands, Except for Per Share and Share Amounts)
Assets
Investment securities - at value
(Notes 1 and 3) ................................. $501,749
Cash ............................................. 221
Receivables:
Interest ........................................ 8,530
Fund shares sold ................................ 1,314
Investment securities sold ...................... 997
Prepaid insurance premium ........................ 11
--------
Total assets .................................. 512,822
--------
Liabilities
Payable to Fund shareholders ..................... 2,474
Dividends payable ................................ 302
Accrued service fee (Note 2) ..................... 97
Accrued transfer agency and dividend
disbursing (Note 2) ............................. 55
Accrued distribution fee (Note 2) ................ 7
Accrued management fee (Note 2) .................. 7
Accrued accounting services fee (Note 2) ......... 5
Other ............................................ 8
--------
Total liabilities ............................. 2,955
--------
Total net assets ............................. $509,867
========
Net Assets
$1.00 par value capital stock
Capital stock ................................... $ 98,306
Additional paid-in capital ...................... 412,960
Accumulated undistributed income (loss):
Distribution in excess of net realized
gain on investment transactions ............... (19)
Net unrealized depreciation in value of
investments ................................... (1,380)
--------
Net assets applicable to outstanding
units of capital ............................. $509,867
========
Net asset value per share (net assets divided
by shares outstanding)
Class A .......................................... $5.19
Class Y .......................................... $5.19
Capital shares outstanding
Class A .......................................... 98,305,330
Class Y .......................................... 377
Capital shares authorized .......................... 300,000,000
See notes to financial statements.
(PAGE)
UNITED MUNICIPAL HIGH INCOME FUND, INC.
STATEMENT OF OPERATIONS
For the Fiscal Year Ended SEPTEMBER 30, 1999
(In Thousands)
Investment Income
Interest and amortization (Note 1B) .............. $33,977
-------
Expenses (Note 2):
Investment management fee ....................... 2,626
Service fee - Class A ........................... 1,115
Transfer agency and dividend disbursing - Class A 481
Distribution fee - Class A ...................... 78
Accounting services fee ......................... 60
Custodian fees .................................. 24
Audit fees ...................................... 17
Legal fees ...................................... 9
Other ........................................... 169
-------
Total expenses ................................ 4,579
-------
Net investment income ........................ 29,398
-------
Realized and Unrealized Gain (Loss) on Investments
(Notes 1 and 3)
Realized net gain on investments ................. 721
Unrealized depreciation in value of
investments during the period ................... (37,310)
-------
Net loss on investments ......................... (36,589)
-------
Net decrease in net assets resulting
from operations .............................. $(7,191)
=======
See notes to financial statements.
(PAGE)
UNITED MUNICIPAL HIGH INCOME FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
(Dollars In Thousands)
For the fiscal year
ended September 30,
-----------------------------
1999 1998
Increase (Decrease) in Net Assets -------------- ------------
Operations:
Net investment income ............... $29,398 $ 28,519
Realized net gain on investments .... 721 12,638
Unrealized appreciation (depreciation) (37,310) 5,793
-------- --------
Net increase (decrease) in net assets
resulting from operations ........ (7,191) 46,950
-------- --------
Distributions to shareholders (Note 1D):*
From net investment income:
Class A ........................... (29,398) (28,519)
Class Y** ......................... --- ---
From realized net gains on investment
transactions:
Class A ........................... (12,257) (6,027)
Class Y** ......................... --- ---
In excess of realized capital gains:
Class A ........................... (19) ---
Class Y** ......................... --- ---
-------- --------
(41,674) (34,546)
-------- --------
Capital share transactions:
Proceeds from sale of shares:
Class A (12,671,972 and 11,013,539
shares, respectively) ............ 69,498 62,198
Class Y (354 and 3,493 shares,
respectively) .................... 2 20
Proceeds from reinvestment of dividends
and/or capital gains distribution:
Class A (6,355,577 and 4,977,786
shares, respectively) ............ 34,776 27,654
Class Y (23 and 15 shares,
respectively)** .................. --- ---
Payments for shares redeemed:
Class A (12,422,841 and 9,576,509
shares, respectively) ............ (67,739) (53,817)
Class Y (0 and 3,508 shares,
respectively) .................... --- (20)
-------- --------
Net increase in net assets resulting
from capital share transactions 36,537 36,035
-------- --------
Total increase (decrease) ...... (12,328) 48,439
Net Assets
Beginning of period .................. 522,195 473,756
-------- --------
End of period ........................ $509,867 522,195
======== ========
Undistributed net investment income . $--- $---
==== ====
*See "Financial Highlights" on pages 29 - 30.
**Amounts not shown due to rounding.
See notes to financial statements.
(PAGE)
UNITED MUNICIPAL HIGH INCOME FUND, INC. FINANCIAL HIGHLIGHTS
Class A Shares
For a Share of Capital Stock Outstanding
Throughout Each Period:
For the fiscal year ended
September 30,
------------------------------------
1999 1998 1997 1996 1995
------- ------ ------ ------ ------
Net asset value,
beginning of
period ........... $5.69 $5.55 $5.31 $5.27 $5.12
----- ----- ----- ----- -----
Income from investment
operations:
Net investment
income........... 0.31 0.32 0.34 0.34 0.35
Net realized and
unrealized gain
(loss) on
investments ..... (0.37) 0.21 0.25 0.04 0.17
----- ----- ----- ----- -----
Total from investment
operations ....... (0.06) 0.53 0.59 0.38 0.52
----- ----- ----- ----- -----
Less distributions:
Declared from net
investment income (0.31) (0.32) (0.34) (0.34) (0.35)
From capital gains (0.13) (0.07) (0.01) (0.00) (0.00)
In excess of capital
gains* .......... (0.00) (0.00) (0.00) (0.00) (0.02)
----- ----- ----- ----- -----
Total distributions. (0.44) (0.39) (0.35) (0.34) (0.37)
----- ----- ----- ----- -----
Net asset value, end
of period ........ $5.19 $5.69 $5.55 $5.31 $5.27
===== ===== ===== ===== =====
Total return** ..... -1.22% 9.88% 11.45% 7.40% 10.63%
Net assets, end
of period (in
millions) ......... $510 $522 $474 $400 $383
Ratio of expenses to
average net
assets ........... 0.87% 0.82% 0.78% 0.81% 0.76%
Ratio of net investment
income to average
net assets ....... 5.59% 5.72% 6.19% 6.41% 6.75%
Portfolio turnover
rate ............. 26.83% 35.16% 19.47% 26.91% 19.07%
*Amount in 1999 not shown due to rounding.
**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. FINANCIAL HIGHLIGHTS
Class Y Shares
For a Share of Capital Stock Outstanding
Throughout Each Period:
For the period For the period
from 12/30/98* from 7/1/98*
to 9/30/99 to 8/25/98
------------------- -------------------
Net asset value,
beginning of
period ........... $5.65 $5.64
----- -----
Income from investment
operations:
Net investment
income........... 0.24 0.05
Net realized and
unrealized gain (loss)
on investments .. (0.33) 0.01
----- -----
Total from investment
operations ....... (0.09) 0.06
................. ----- -----
Less distributions:
Declared from net
investment income (0.24) (0.05)
From capital gains (0.13) (0.00)
In excess of capital
gains** ......... (0.00) (0.00)
----- -----
Total distributions (0.37) (0.05)
----- -----
Net asset value, end
of period ........ $5.19 $5.65
===== =====
Total return ....... -1.53% 1.07%
Net assets, end
of period (000
omitted) .......... $2 $0
Ratio of expenses to
average net
assets ........... 0.80%*** 0.61%***
Ratio of net investment
income to average
net assets ....... 5.68%*** 5.99%***
Portfolio turnover
rate ............. 26.83%**** 35.16%***
*Class Y shares commenced operations on July 1, 1998 and continued
operations until August 25, 1998 when all outstanding Class Y shares
were redeemed at the ending net asset value shown in the table.
Operations recommenced on December 30, 1998.
**Amount in 1999 not shown due to rounding.
***Annualized.
****For the fiscal year ended September 30, 1999.
See notes to financial statements.
(PAGE)
UNITED MUNICIPAL HIGH INCOME FUND, INC. NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
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. Its investment objective is to seek to
provide a high level of income which is not subject to Federal income tax.
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 a
pricing system provided by a pricing service or dealer in bonds.
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 in
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 Subchapter M of 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 as of the close of the preceding business
day. Net investment income dividends and capital gains distributions
are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These
differences are due to differing treatments for items such as deferral
of wash sales and post-October losses, net operating losses and
expiring capital loss carryovers.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
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. As
of June 30, 1999, the fee is payable by the Fund at the annual rate of
0.525% of net assets up to $500 million, 0.50% of net assets over $500
million and up to $1 billion, 0.45% of net assets over $1 billion and up
to $1.5 billion, and 0.40% of net assets over $1.5 billion. Prior to June 30,
1999, the fee consisted 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 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 the 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 $1.3125 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 gross
sales commissions (which are not an expense of the Fund) of $1,439,099, out
of which W&R paid sales commissions of $820,399 and all expenses in
connection with the sale of Fund shares, except for registration fees and
related expenses.
Under a Distribution and Service Plan for Class A shares adopted by
the Fund pursuant to Rule 12b-1 under the Investment Company Act of 1940,
the Fund may pay monthly a distribution and/or service fee to W&R in an
amount not to exceed .25% of the Fund's Class A average annual net assets.
The fee is to be paid to reimburse W&R for amounts it expends in connection
with the distribution of the Class A shares and/or provision of personal
services to Fund shareholders and/or maintenance of shareholder accounts.
The Fund paid Directors' fees of $20,095, which are included in
other expenses.
W&R is a subsidiary of Waddell & Reed Financial, Inc., 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 $144,206,857, while proceeds from
maturities and sales aggregated $137,546,936. Purchases of short-term
securities aggregated $463,351,846, while proceeds from maturities and
sales aggregated $446,356,030. No U.S. Government securities were bought
or sold during the period ended September 30, 1999.
For Federal income tax purposes, cost of investments owned at
September 30, 1999 was $503,242,234, resulting in net unrealized
depreciation of $1,493,197, of which $14,858,737 related to appreciated
securities and $16,351,934 related to depreciated securities.
NOTE 4 -- Federal Income Tax Matters
For Federal income tax purposes, the Fund realized capital gain net
income of $720,801 during its fiscal year ended September 30, 1999, of
which a portion was paid to shareholders during the period ended September
30, 1999. Remaining capital gain net income will be distributed to the
Fund's shareholders.
NOTE 5 -- Multiclass Operations
The Fund is authorized to offer four classes of shares, Class A, Class
B, Class C and Class Y, each of which have equal rights as to assets and
voting privileges. Only Class A and Class Y shares were issued during the
six months ended September 30, 1999. Class Y shares are not subject to a
sales charge on purchases, are not subject to a Rule 12b-1 Distribution and
Service Plan and are subject to a separate transfer agency and dividend
disbursement services fee structure. A comprehensive discussion of the
terms under which shares of either class are offered is contained in the
Prospectus and the Statement of Additional Information for the Fund.
Income, non-class specific expenses, and realized and unrealized gains
and losses are allocated daily to each class of shares based on the value
of their relative net assets as of the beginning of each day adjusted for
the prior day's capital share activity.
(PAGE)
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
United Municipal High Income Fund, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of United Municipal High Income
Fund, Inc. (the "Fund") as of September 30, 1999, and the related statement
of operations for the fiscal year then ended, the statements of changes in
net assets for each of the two fiscal years in the period then ended, and
the financial highlights for each of the five fiscal years in the period
then ended. These financial statements and the financial highlights are
the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and the financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and the
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 1999, by correspondence with the
custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of United Municipal High Income Fund, Inc. as of September 30, 1999, the
results of its operations for the fiscal year then ended, the changes in
its net assets for each of the two fiscal years in the period then ended,
and the financial highlights for each of the five fiscal years in the
period then ended in conformity with generally accepted accounting
principles.
Deloitte & Touche LLP
Kansas City, Missouri
November 5, 1999
(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.
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, 1999:
PERCENTAGE OF AMOUNTS PAID REPORTABLE AS:
------------------------------------------------
For Individuals For Corporations
----------------------------------------------------------------
RecordOrdinaryLong-Term Exempt Non- Long-Term Exempt
Date IncomeCapital GainInterestQualifyingCapital GainInterest
------------------------------------------------------------------
Class A
October
through
December
1998 1.4940% ---% 98.5060% 1.4940% ---%98.5060%
December
1998 1.0643%98.9357% ---% 1.0643% 98.9357% ---%
January
through
September
1999 1.4621% ---% 98.5379% 1.4621% ---%98.5379%
Class Y
October
through
December
1998 1.4940% ---% 98.5060% 1.4940% ---%98.5060%
December
1998 1.0643%98.9357% ---% 1.0643% 98.9357% ---%
January
through
September
1999 1.4621% ---% 98.5379% 1.4621% ---%98.5379%
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)
Shareholder Meeting Results
A special meeting of United Municipal High Income Fund, Inc. was held on
June 22, 1999. The matters voted upon by the shareholders and the
resulting votes for each matter are presented below.
Item 1. To elect the Board of Directors:
Broker
For Withhold Non-Votes*
J. Concannon 50,656,926 1,883,744 0
J. Dillingham 50,626,170 1,914,500 0
D. Gardner 50,552,063 1,988,607 0
L. Graves 50,636,774 1,903,896 0
J. Harroz Jr. 50,504,264 2,036,406 0
J. Hayes 50,487,526 2,053,144 0
R. Hechler 50,579,500 1,961,170 0
H. Herrmann 50,615,666 1,925,004 0
G. Johnson 50,502,659 2,038,011 0
W. Morgan 50,580,174 1,960,496 0
R. Reimer 50,526,033 2,014,637 0
F. Ross 50,652,558 1,888,112 0
E. Schwartz 50,618,398 1,922,272 0
K. Tucker 50,643,661 1,897,009 0
F. Vogel 50,651,900 1,888,770 0
Item 2. To ratify the selection of Deloitte & Touche LLP as the
Fund's independent accountants for its current fiscal year:
Broker
For Against Abstain Non-Votes*
49,861,971 366,206 2,312,493 0
Item 3. To approve or disapprove the amendment to the Fund's
investment management agreement with Waddell & Reed Investment
Management Company:
Broker
For Against Abstain Non-Votes*
46,806,690 2,782,978 2,802,888 148,114
Item 5. To approve or disapprove the Fund's Articles of
Incorporation to change the par value of Fund shares to $0.001:
Broker
For Against Abstain Non-Votes*
46,426,861 1,581,863 4,531,946 0
*Broker Non-Votes are proxies received by the Fund from brokers or nominees
when the broker or nominee neither has received instructions from the
beneficial owner or other persons entitled to vote nor has discretionary
power to vote on a particular matter.
(PAGE)
DIRECTORS
Keith A. Tucker, Overland Park, Kansas, Chairman of the Board
James M. Concannon, Topeka, Kansas
John A. Dillingham, Kansas City, Missouri
David P. Gardner, Menlo Park, California
Linda K. Graves, Topeka, Kansas
Joseph Harroz, Jr., Norman, Oklahoma
John F. Hayes, Hutchinson, Kansas
Robert L. Hechler, Overland Park, Kansas
Henry J. Herrmann, Overland Park, Kansas
Glendon E. Johnson, Miami, Florida
William T. Morgan, Coronado, California
Ronald C. Reimer, Mission Hills, Kansas
Frank J. Ross, Jr., Kansas City, Missouri
Eleanor B. Schwartz, Kansas City, Missouri
Frederick Vogel III, Milwaukee, Wisconsin
OFFICERS
Robert L. Hechler, President
Henry J. Herrmann, Vice President
John M. Holliday, Vice President
Theodore W. Howard, Vice President and Treasurer
Helge K. Lee, Vice President and Secretary
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 Accumulative Fund
United Asset Strategy Fund, Inc.
United Bond Fund
United Cash Management, Inc.
United Continental Income Fund, Inc.
United Government Securities Fund, Inc.
United High Income Fund, Inc.
United High Income Fund II, Inc.
United Income Fund
United International Growth Fund, Inc.
United Municipal Bond Fund, Inc.
United Municipal High Income Fund, Inc.
United New Concepts Fund, Inc.
United Retirement Shares, Inc.
United Science and Technology Fund
United Small Cap Fund, Inc.
United Vanguard Fund, Inc.
FOR MORE INFORMATION:
Contact your representative, or your
local office as listed on your
Account Statement, or contact:
WADDELL & REED
CUSTOMER SERVICE
6300 Lamar Avenue
P.O. Box 29217
Shawnee Mission, KS 66201-9217
(800) 366-5465
Our INTERNET address is:
http://www.waddell.com
NUR1014A(9-99)
printed on recycled paper
