Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
NUVEEN MUNICIPAL VALUE FUND, INC.
NUVEEN MUNICIPAL INCOME FUND, INC.
ANNUAL REPORT/OCTOBER 31, 1995
Photographic image of man seated at breakfast table with wife standing behind
him.
<PAGE>
Photographic image of Nuveen Research Department. Four people around a table
working.
Research: a foundation
Your financial plan is in place. You and your adviser have made asset
allocation decisions. For the tax-free portion of your portfolio, you want
dependable income, safety of principal, and diversification. Solid, reliable
Nuveen research helps to keep your tax-free investments on the path you have
chosen.
Paul Williams, Vice President and Manager of Investment Strategies and
Research, emphasizes fundamental research as a strategy for finding value.
<PAGE>
The strength of Nuveen's Research Department is illustrated by the numerous
awards and press coverage we receive. Annual industry polls consistently
recognize the quality and depth of Nuveen Research.
Photographic image of a grouping of awards/statuettes.
At Nuveen, we believe that attention to detail combined with years of
experience is the foundation for sound research. Sound research means finding
quality bonds that deliver timely and dependable income over many decades.
Beyond this, it means adding value by identifying bonds whose credit strengths
are not yet understood by the market.
USING RESEARCH TO TRACK QUALITY AND VALUE
With tens of thousands of bonds available for investment today, the municipal
market is one of the nation's largest--and most complex--securities markets.
At the same time, the number of analysts devoted to researching the municipal
market is comparatively small. While more than 12,000 analysts at nearly 2,000
firms and investment organizations research the 7,500 common stocks available
in the equity market, approximately 1,000 analysts at 400 firms and rating
agencies cover 60,000 municipal bond issues.
Selecting those bonds that will outperform the market and help you achieve
your investment goals depends upon an ability to analyze and understand
complexities ranging from the demand for a new highway or airport to the
impact of an industry closure on the financial position of a town's water and
sewer system.
At Nuveen, we can provide this depth because we have the largest research
staff in the investment banking industry devoted exclusively to the analysis
of municipal bonds. Our award-winning team of more than 30 research
professionals provides invaluable support to our portfolio managers, assisting
them in careful analysis of bond issues considered for purchase--even those
rated AAA.
On a daily basis, our research analysts prepare credit reviews to assist in
the selection of bonds that offer the best combination of yield and security,
monitor the continued creditworthiness of portfolio holdings, and analyze
economic, political, and demographic trends affecting the markets.
The scope of this analysis is broad. We understand the beneficial insights
that can be obtained by assessing the impact of local elections in small towns
or gaining an understanding of the global wood pulp market to accurately
evaluate a municipal issue in Alaska. Recently a financial adviser noticed a
large number of clippings on salmon fishing on one Nuveen analyst's desk. The
analyst explained that the articles provided information on salmon spawning, a
conservation issue having a major impact on public hydroelectric projects in
the Pacific Northwest. With the largest research staff in the industry, we can
analyze subtle but essential details such as this--and apply our findings to
enhance the performance of your portfolio.
<PAGE>
BENEFITING OUR INVESTORS
The Nuveen Research Department supports the investment goals of fund investors
through three major activities:
Primary research and surveillance
Every year, our research staff reviews thousands of tax-exempt issues valued
at more than $100 billion to help our portfolio managers select the most
appropriate bonds based on current yield, price, credit quality, and future
prospects.
A recent example of the way Nuveen Research benefits our shareholders was
our successful investment in Philadelphia water and sewer bonds. When the city
decided to issue bonds to fund badly needed capital improvements, the city's
fiscal difficulties resulted in an issue that was priced below that of other
cities for similar bonds, generating higher income. However, Nuveen's own
research performed independently from the rating agencies indicated that the
city water and sewer system was economically sound and that adequate legal
safeguards would be in place to protect the investment. Following the
completion of the improvements, the prices of these bonds resulted in a
sizable portfolio gain to our shareholders.
Research reports
Just as you rely on your financial adviser for seasoned, prudent advice,
financial advisers depend on Nuveen's research reports to keep current on
market developments. Reports cover issues ranging from credit analysis of
specific states to comprehensive examinations of tax-free investment
strategies and the impact of national and state elections on municipal issues.
(For a list of research reports currently available to you and your adviser,
please refer to the attached reply card.)
Investor interests
We take our responsibility to our shareholders seriously by actively
representing their interests before the industry and government groups that
oversee and regulate the markets. We testified before a U.S. Senate
subcommittee to support better disclosure of financial information by bond
issuers. Our analysis of the effect of the Orange County bankruptcy on other
California issuers helped a California Senate subcommittee understand the
importance of fiscal conservatism and prudent policy decisions. By providing
informed opinions backed by years of experience, we help to define and set
policy that benefits you.
At Nuveen, quality research is one of the core elements of our disciplined
approach to providing you with dependable income, credit quality, and
diversification--key elements of a successful investment program.
Nuveen's research reports are often used by the press as background when
covering the municipal market in depth.
Photographic image of a grouping of research reports and newspapers.
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Photographic image of man seated at breakfast table with wife standing behind
him.
CONTENTS
6 Municipal market perspective
7 Dear shareholder
9 Answering your questions
14 Fund performance
15 Commonly used terms
17 Shareholder meeting report
18 Portfolio of investments
30 Statement of net assets
31 Statement of operations
32 Statement of changes in net assets
33 Notes to financial statements
42 Financial highlights
44 Report of independent auditors
45 Nuveen Exchange-Traded Funds dividend reinvestment program
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Municipal market perspective
The start of 1995 brought with it a turnaround in the bond market, concluding
one of the worst periods in recent bond market history. This rebound reflects
a general consensus that inflation is under control following an unprecedented
series of seven interest rate hikes by the Federal Reserve Board over a
twelve-month period.
In early July, the Federal Reserve reacted to the slowing economy by making a
much-anticipated move to ease short-term rates, the first such reduction in
nearly three years. Further rate cuts remain a possibility, as the Fed keeps a
close eye on the strength of the expanding economy and the outcome of
Congressional efforts to balance the federal budget.
In the municipal bond market, prospects of another Fed easing helped
municipals gain momentum toward year end, despite an exceptionally strong
stock market and continued debate about potential tax reform legislation.
Inflation for the year remained low, a benefit to bondholders.
<PAGE>
Dear shareholder
Photographic image of Richard Franke, Chairman of Nuveen.
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful investment programs."
Since the beginning of 1995, we have enjoyed a welcome rebound in the bond
markets, as we put behind us 1994--a very volatile period in bond market
history. This period serves as a reminder that weathering the ups and downs of
the markets is a normal part of the investment process. We can gain a better
perspective on this process if we remember one of the basic principles of
investing: A financial plan that focuses on your long-term goals can minimize
the impact of any short-term market volatility.
Municipal bond funds continue to be an attractive way to invest for the long
term, offering steady tax-free income and diversification across market
sectors. Throughout the past year, we have kept our sights focused on
successfully meeting these objectives, providing you with a solid source of
current income, credit quality, and enhanced share price relative to the
market as a whole.
As of October 31, 1995, the current yield on share price was 6.46% for the
Municipal Value Fund and 6.70% for the Municipal Income Fund. To match these
yields, an investor in the 36% federal income tax bracket would have had to
earn 10.09% and 10.47%, respectively, on taxable alternatives of comparable
quality. Without question, taxable yields at these levels on investments of
comparable quality are difficult to achieve in today's markets.
Reflecting the rebound in the bond market, each of these funds reported
gains in net asset value over October 31, 1994, as well as substantial
increases in share price. The 12-month total returns on net asset value,
reflecting share price gains plus reinvested dividend income, were 11.51% for
the Municipal Value Fund and 10.86% for the Municipal Income Fund, which
translates to 15.34% and 14.80%, respectively, on a taxable-equivalent basis.
These performance results remind us of the important role that municipal
bonds--and the tax-free income they provide--can play as part of an investment
strategy focused on diversification and long-term performance.
The value and dependability of your municipal bond investments are enhanced
by the fact that you have chosen tax-free exchange-traded funds managed by
Nuveen. We offer a combination of professional management, award-winning
research, and shareholder service that distinguishes Nuveen as a fund manager.
<PAGE>
Our portfolio management strategy, which we call value investing, relies on
a disciplined approach to security selection and portfolio construction
designed to deliver above-market performance by emphasizing securities that
are underpriced or undervalued by the market. This approach is supported by
the strength of Nuveen Research, which provides the insights and experience to
assist portfolio managers in identifying and selecting bonds with strong
credit quality. Our research professionals continually monitor our holdings in
order to alert portfolio managers about changes that may affect quality.
Nuveen also prides itself on its exceptional service to shareholders.
Through annual and semiannual reports, regular statements, as well as our
toll-free information lines, our communication programs help us stay in touch
with your needs and concerns. We also provide support to financial advisers
across the nation by supplying them with the information they need to answer
your questions and ensure that products are selected to meet your needs. Our
educational reports--covering issues such as credit analyses, tax-free
investment strategies, and tax reform proposals--are available to both you and
your adviser to keep you current on market developments.
As you review the following pages detailing the solid performance of your
funds, we trust you will come away with the feeling that these results,
coupled with Nuveen's continued pledge of premium service, add up to a
rewarding investment experience. We look forward to serving your tax-free
investment needs in the future.
Sincerely,
Richard J. Franke
Chairman of the Board
December 15, 1995
<PAGE>
Answering your questions
Photographic image of montage of letters received by Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, offers insights into
value investing and the bond market recovery.
How has the recovery of the municipal bond market affected Nuveen funds?
In short, the market recovery has helped most Nuveen funds regain some of the
share price they lost during 1994's market. To put this in perspective, the
setback in the bond market last year--which goes on record as one of the most
volatile periods in decades--was the first down-turn experienced by many
Nuveen exchange-traded fund investors, and some reacted by selling their
shares. This, in turn, drove share prices down even further. Since the
beginning of the recovery in early 1995, however, municipal bond prices have
increased and most Nuveen funds have seen their prices rise.
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
<PAGE>
Why do these funds continue to trade at a discount despite the recovery?
To understand why this is happening, it may be helpful to remember that each
share has two prices: the net asset value (NAV), which represents the
underlying value--or the sum of assets and liabilities--of the fund, and the
share price, which reflects the market's assessment of the fund.
As the market turned around in 1995, net asset values appreciated more
quickly than share prices. This is typical of a market that sometimes takes a
while to recognize underlying value balanced against the various factors that
affect share price, such as interest rates, inflation forecasts, the relative
strength of the stock market, or the legislative and tax outlook. The fact
that gains in NAVs are currently outpacing the rate of change in share prices
means that the market is lagging in recognizing the value currently offered by
municipal bonds.
Investors in the Nuveen national funds should be aware that the net asset
values for these funds, as shown in this report, remain quite strong. For
long-term investors, in fact, the current period may present a buying
opportunity, as shares can be purchased at prices lower than their underlying
value--and at a time when the bond market is strong.
What does Nuveen mean by "value investing"? Where are Nuveen analysts finding
value today?
At Nuveen, we define value investing as a disciplined approach to security
selection and portfolio construction designed to deliver above-market
performance. We emphasize securities that offer good intrinsic value but that
are underpriced or undervalued by the market. Our value investing approach
concentrates on identifying individual bonds with current yields, prices,
credit quality, and future prospects that are exceptionally attractive in
relation to other bonds in the market.
As we search for value in the market today, our analysts continue to assess
investment potential across the entire spectrum of geographical and sector
opportunities. During 1995, we have seen many credit upgrades on portfolio
holdings, meaning that our judgments about credit quality have been rewarded.
We currently favor revenue bonds, which offer a dedicated revenue stream--such
as tollways or recycling plants, over general obligation bonds, which rely on
the taxing power of a state or municipality. One example of revenue bonds that
have performed exceptionally well for us recently are those issued for the
Denver International Airport.
<PAGE>
What does Nuveen see as the impact of the flat tax proposals?
We have been closely monitoring the various flat tax proposals currently being
debated in Congress and their implications for tax-free funds. Four major tax
reform proposals are currently under discussion, all with the common goal of
simplifying the federal tax code and increasing incentives for saving and
investment. It is important to note that none of the proposals has gained a
strong consensus and implementation of any measure that manages to pass both
houses is at least two years away. We believe that some action on the tax
reform front is likely, as the federal tax laws are constantly being
reevaluated and revised, although changes of the magnitude outlined in current
proposals are rare.
As we look at the bond market today, we can see some evidence that the
market is already compensating investors for the uncertainty of tax reform.
Yields on municipal bonds are currently at a level equal to 90% or more of
Treasury bond yields, a historically high level. These yields are comparable
to taxable yields in the 10% range, providing good value that is tough to
match
Once the tax issue is resolved, we're confident that municipal bonds--
because of their high credit quality and attractive yields--will continue to
hold a strategic place in the prudent investor's portfolio. The importance of
municipal bonds is enhanced by the integral role they play in maintaining our
way of life in this country. Our cities, counties, and states will always have
a need for financing to build and upgrade projects such as roads, hospitals,
and water treatment systems. And municipal bonds will continue to be an
essential way to match America's long-term needs for capital improvements with
investors' long-term needs for secure income.
What is Nuveen's outlook as we head into 1996?
Inflation remains low and the economy seems to be expanding at a reasonable
pace; and, while both of these factors can change and have an impact on the
bond market, the current environment is favorable for bonds. While municipal
supply is down from past years, demand from institutional investors such as
insurance companies has been strong in 1995, contributing to the rebound in
municipal prices. If we experience continued slow and steady economic growth,
combined with low inflation and stable interest rates, that may attract
greater numbers of individual investors as well.
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NUVEEN MUNICIPAL VALUE FUND, INC.
NUV
As older, higher coupon bonds were called and replaced with today's
lower-yielding bonds, the Fund's dividend was adjusted to reflect reduced
earnings. The Fund paid shareholders a capital gains distribution in December.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/94 $0.0550
12/94 $0.0550 $0.0288
1/95 $0.0550
2/95 $0.0550
3/95 $0.0550
4/95 $0.0550
5/95 $0.0550
6/95 $0.0550
7/95 $0.0525
8/95 $0.0525
9/95 $0.0525
10/95 $0.0525
<CAPTION>
FUND HIGHLIGHTS 10/31/95
<S> <C>
Yield 6.46%
Taxable-equivalent yield 10.09%
Annual total return on NAV 11.51%
Taxable-equivalent total return 15.34%
Federal tax rate 36.00%
Share price $9.75
NAV $10.29
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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NUVEEN MUNICIPAL INCOME FUND, INC.
NMI
As older, higher coupon bonds were called and replaced with today's
lower-yielding bonds, the Fund's dividend was adjusted to reflect reduced
earnings.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/94 $0.0665
12/94 $0.0665
1/95 $0.0665
2/95 $0.0665
3/95 $0.0665
4/95 $0.0665
5/95 $0.0665
6/95 $0.0635
7/95 $0.0635
8/95 $0.0635
9/95 $0.0635
10/95 $0.0635
<CAPTION>
FUND HIGHLIGHTS 10/31/95
<S> <C>
Yield 6.70%
Taxable-equivalent yield 10.47%
Annual total return on NAV 10.86%
Taxable-equivalent total return 14.80%
Federal tax rate 36.00%
Share price $11.375
NAV $11.97
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, October 31, 1995) divided by its closing price per share
on that date.
Taxable equivalent yield
The return an investor subject to a given federal income tax rate would need
to obtain from a fully taxable investment to equal the fund's stated
annualized yield on share price. In this report, the tax rate is assumed to be
36.0% for shareholders, based on incomes of $117,950-$256,500 for investors
filing singly, $143,600-$256,500 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets,
divided by the total number of shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per share for a given period, assuming
reinvestment of all dividends and capital gains distributions, if any.
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Each Fund intends to repurchase shares of its own stock in the future at such
times and in such amounts as is deemed advisable. No shares were repurchased
during the 12-month period ended October 31, 1995. Any future repurchases will
be reported to shareholders in the next annual or semiannual report.
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SHAREHOLDER MEETING REPORT
On July 26, 1995, Nuveen Exchange-Traded Funds held an Annual Meeting of
Shareholders. At the meeting, shareholders voted to elect directors of the
Funds and to ratify selection of the auditors for the Funds. The directors
elected at the meeting include: Lawrence H. Brown, Peter R. Sawers, and
Timothy R. Schwertfeger.
<CAPTION>
NUV NMI
<S> <C> <C>
APPROVAL OF THE DIRECTORS
WAS REACHED AS FOLLOWS:
Lawrence H. Brown
For 164,724,070 6,699,082
Abstain 1,915,355 75,030
----------- ---------
Total 166,639,425 6,774,112
=========== =========
Peter R. Sawers
For 164,848,533 6,700,105
Abstain 1,790,892 74,007
----------- ---------
Total 166,639,425 6,774,112
=========== =========
Timothy R. Schwertfeger
For 164,993,632 6,703,309
Abstain 1,645,793 70,803
----------- ---------
Total 166,639,425 6,774,112
=========== =========
RATIFICATION OF AUDITORS
WAS REACHED AS FOLLOWS:
For 163,757,853 6,662,657
Against 675,367 21,062
Abstain 2,206,205 90,393
----------- ---------
Total 166,639,425 6,774,112
=========== =========
</TABLE>
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<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL VALUE FUND, INC. (NUV)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 0.7%
$ 10,000,000 Birmingham Waterworks and Sewer Board,
5.500%, 1/01/20 1/04 at 102 Aa $ 9,719,300
4,000,000 Medical Clinic Board of Jasper (Walker Regional Medical
Center), 6.375%, 7/01/18 7/02 at 102 Baa1 3,804,440
ARIZONA - 0.9%
10,400,000 Scottsdale Industrial Development Authority (Scottsdale
Memorial Hospital), 8.500%, 9/01/17 9/97 at 102 Aaa 11,340,992
5,735,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 A- 6,470,284
CALIFORNIA - 4.6%
California Department of Water Resources (Central
Valley Project):
9,000,000 5.750%, 12/01/19 6/03 at 101 1/2 Aa 8,912,700
16,500,000 4.750%, 12/01/24 12/03 at 101 Aa 13,986,720
14,500,000 California Pollution Control Financing Authority (Pacific
Gas and Electric Company), Alternative Minimum Tax,
8.875%, 1/01/10 12/97 at 102 A2 15,944,345
16,350,000 California Public Works Board (Regents of the University
of California), 5.500%, 6/01/21 6/03 at 102 Con(A1) 15,176,234
2,500,000 California Statewide Communities Development
Corporation (Pacific Homes), Certificates of
Participation, 6.000%, 4/01/17 4/03 at 102 A 2,445,350
5,000,000 California Statewide Communities Development
Authority (St. Joseph Health System), 5.500%, 7/01/14 7/03 at 102 Aa 4,739,900
Foothill/Eastern Transportation Corridor Agency:
30,000,000 0.000%, 1/01/22 No Opt. Call BBB- 5,058,600
10,000,000 6.000%, 1/01/34 1/05 at 102 BBB- 9,464,300
17,970,000 Los Angeles County Public Works Finance Authority,
4.750%, 12/01/13 12/03 at 102 Aaa 16,028,342
COLORADO - 9.0%
19,185,000 Colorado Health Facilities Authority (Sisters of Charity
Health Care System), 5.250%, 5/15/14 5/04 at 102 Aa 17,841,091
12,500,000 Arvada Urban Renewal Authority, 8.750%, 3/01/06 3/97 at 101 B 11,875,000
Denver City and County Airport System, Alternative
Minimum Tax:
3,680,000 7.000%, 11/15/03 11/02 at 102 Baa 3,999,792
9,150,000 8.250%, 11/15/12 11/00 at 102 Baa 10,316,351
5,600,000 6.750%, 11/15/13 11/02 at 102 Baa 5,692,456
7,500,000 7.750%, 11/15/21 11/01 at 102 Baa 8,263,425
31,025,000 6.750%, 11/15/22 11/02 at 102 Baa 31,347,350
13,000,000 8.750%, 11/15/23 11/01 at 102 Baa 15,241,330
31,240,000 8.500%, 11/15/23 11/00 at 102 Baa 35,604,853
10,415,000 7.250%, 11/15/23 11/02 at 102 Baa 11,070,208
29,205,000 7.000%, 11/15/25 11/01 at 100 Baa 29,698,272
FLORIDA - 3.6%
3,765,000 Florida Community Services Corporation of Walton
County, 9.000%, 3/01/18 (Pre-refunded to 3/01/98) 3/98 at 103 N/R 4,267,552
7,000,000 Dade County Health Facilities Authority (Mt. Sinai
Medical Center), 8.400%, 12/01/17 (Pre-refunded
to 12/01/97) 12/97 at 102 Aaa 7,750,260
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
FLORIDA (CONTINUED)
Escambia County Health Facilities Authority (Baptist
Hospital):
$ 3,975,000 8.600%, 10/01/02 10/98 at 102 BBB+ $ 4,447,071
10,000,000 8.700%, 10/01/14 10/98 at 102 BBB+ 11,214,500
5,000,000 Orlando Utilities Commission, 5.500%, 10/01/27 10/02 at 100 Aa 4,786,300
Palm Beach County Health Facility Authority (JFK
Medical Center):
14,925,000 8.875%, 12/01/18 (Pre-refunded to 12/01/98) 12/98 at 102 BBB 17,098,677
10,785,000 8.875%, 12/01/18 12/98 at 102 BBB 12,110,369
8,510,000 Santa Rosa County Health Facilities Authority (Gulf
Breeze Hospital), 8.700%, 10/01/14 (Pre-refunded to
10/01/98) 10/98 at 102 AAA 9,730,334
GEORGIA - 1.4%
19,070,000 Georgia Municipal Electric Authority, 7.750%, 1/01/18
(Pre-refunded to 1/01/97) 1/97 at 102 Aaa 20,292,959
7,000,000 Burke County Development Authority, Pollution Control
(Georgia Power Company), 8.000%, 10/01/16 10/96 at 102 A2 7,339,290
ILLINOIS - 7.2%
6,205,000 Illinois Development Finance Authority Industrial
Development (Plano Molding Co.), Alternative
Minimum Tax, 7.750%, 6/01/12 6/02 at 102 N/R 6,424,099
3,000,000 Illinois Development Finance Authority, Pollution
Control (Commonwealth Edison Company),
5.850%, 1/15/14 No Opt. Call Baa2 2,820,660
11,000,000 Illinois Educational Facilities Authority (Chicago
College of Osteopathic Medicine), 8.500%, 7/01/08
(Pre-refunded to 7/01/98) 7/98 at 102 BBB+ 12,369,940
Illinois Health Facilities Authority (Hinsdale Hospital):
2,455,000 9.500%, 11/15/19 (Pre-refunded to 11/15/00) 11/00 at 102 BBB 3,038,946
1,380,000 9.500%, 11/15/19 11/00 at 102 BBB 1,624,964
5,500,000 Illinois Health Facilities Authority (South Suburban
Hospital), 7.000%, 2/15/18 2/02 at 102 A 5,759,380
7,000,000 Illinois Health Facilities Authority (Swedish American
Hospital), 5.375%, 11/15/23 11/03 at 102 Aaa 6,512,450
14,000,000 Illinois Health Facilities Authority (Illinois Masonic
Medical Center), 5.500%, 10/01/19 10/03 at 102 A 12,592,860
12,800,000 Illinois Health Facilities Authority (Rush-Presbyterian-
St. Luke's Medical Center), 5.250%, 11/15/20 11/03 at 102 Aaa 11,741,696
15,000,000 Illinois Sales Tax, 5.500%, 6/15/20 6/02 at 101 AAA 14,309,100
5,000,000 Chicago General Obligation, 6.250%, 1/01/12 1/02 at 102 Aaa 5,175,450
1,125,000 Chicago Metropolitan Water Reclamation District,
General Obligation, 7.000%, 1/01/11 No Opt. Call Aa 1,298,858
12,535,000 Chicago O'Hare International Airport, Alternative
Minimum Tax, 8.000%, 1/01/08 1/97 at 102 A1 13,283,590
17,500,000 Chicago Public Building Commission (Board of
Education), 5.750%, 12/01/18 12/03 at 102 Aaa 17,289,825
Chicago Tax Increment (Stockyards Industrial
Redevelopment):
9,860,000 9.000%, 1/01/11 1/01 at 102 N/R 11,273,037
5,200,000 9.250%, 1/01/14 No Opt. Call N/R 5,664,672
10,000,000 Regional Transportation Authority, 6.250%, 6/01/24 6/04 at 102 Aaa 10,323,700
1,845,000 Tri-City Regional Port District, Alternative Minimum
Tax, 9.650%, 7/01/07 7/98 at 102 N/R 2,090,071
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
INDIANA - 2.5%
$ 5,000,000 Indiana Office Building Commission, 8.750%, 7/01/12
(Pre-refunded to 7/01/97) 7/97 at 102 Aaa $ 5,475,150
4,500,000 Indianapolis Airport Authority (Federal Express
Corporation), Alternative Minimum Tax,
7.100%, 1/15/17 7/04 at 102 Baa2 4,783,905
Penn-Harris-Madison School Corporation, Certificates
of Participation:
10,570,000 7.900%, 6/15/03 (Pre-refunded to 6/15/97) 6/97 at 102 AAA 11,420,991
15,755,000 8.400%, 6/15/08 (Pre-refunded to 6/15/97) 6/97 at 102 AAA 17,140,810
South Bend Multi-Family Housing, Alternative
Minimum Tax:
500,000 7.750%, 12/15/18 12/03 at 100 N/R 479,250
96,915 4.000%, 12/15/18 12/03 at 100 N/R 55,334
South Bend Multi-Family Housing:
9,155,000 7.500%, 12/15/18 12/03 at 100 N/R 8,767,377
3,168,570 3.850%, 12/15/18 12/03 at 100 N/R 1,814,513
IOWA - 0.6%
122,390,000 Iowa Housing Finance Authority, 0.000%, 9/01/16 No Opt. Call Aaa 11,890,189
KANSAS - 0.3%
6,650,000 Newton Healthcare Corporation, 7.750%, 11/15/24 11/04 at 102 BBB- 6,878,893
KENTUCKY - 1.8%
22,390,000 Kentucky Development Finance Authority (Good
Samaritan Hospital), 10.250%, 12/01/11 (Pre-refunded
to 12/01/95) 12/95 at 102 N/R 22,952,661
12,500,000 Carroll County Pollution Control (Kentucky Utilities
Company), 7.450%, 9/15/16 9/02 at 102 Aa2 14,142,625
LOUISIANA - 1.4%
22,865,000 Louisiana Public Facilities Authority (Southern Baptist
Hospital), 8.000%, 5/15/12 No Opt. Call AAA 27,320,245
MAINE - 0.6%
11,865,000 Maine State Housing Authority, 5.550%, 11/15/14 2/04 at 102 AA- 11,199,374
MASSACHUSETTS - 7.2%
11,595,000 Massachusetts Housing Finance Agency (GNMA),
9.125%, 12/01/20 12/95 at 102 Aaa 11,883,600
Massachusetts Housing Finance Agency, Multi-Family
Residential Housing, Alternative Minimum Tax:
6,000,000 8.750%, 8/01/08 2/98 at 102 A+ 6,440,040
28,070,000 8.800%, 8/01/21 2/98 at 102 A+ 30,280,793
Massachusetts Housing Finance Authority, Insured Rental
Housing, Alternative Minimum Tax:
7,000,000 6.650%, 7/01/19 7/04 at 102 Aaa 7,253,470
6,050,000 6.750%, 7/01/28 7/04 at 102 Aaa 6,267,982
5,000,000 Massachusetts Industrial Finance Agency, Resource
Recovery (Semass Project), 9.000%, 7/01/15 7/01 at 103 N/R 5,482,900
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
Massachusetts Municipal Wholesale Electric Company:
$ 28,900,000 8.750%, 7/01/18 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa $ 31,646,367
1,700,000 8.750%, 7/01/18 7/97 at 102 A 2,012,164
Massachusetts Water Resources Authority:
24,405,000 6.000%, 4/01/20 4/00 at 100 A 24,426,965
20,185,000 5.500%, 7/15/22 7/02 at 100 A 19,169,089
MICHIGAN - 4.4%
15,750,000 Michigan Housing Development Authority,
6.150%, 10/01/15 6/05 at 102 Aaa 16,036,335
19,235,000 Michigan Public Power Agency, 7.000%, 1/01/18
(Pre-refunded to 1/01/96) 1/96 at 101 AAA 19,529,488
2,050,000 Michigan State Hospital Finance Authority (St. John
Hospital), 9.200%, 12/01/10 (Pre-refunded to 12/01/95) 12/95 at 102 N/R 2,099,836
7,000,000 Michigan State Hospital Finance Authority (Detroit
Medical Center), 7.500%, 8/15/11 8/01 at 102 A 7,666,890
6,100,000 Michigan State University, 5.500%, 8/15/22 8/02 at 100 AA- 5,784,752
25,000,000 Michigan Strategic Fund (Detroit Edison Company),
Pollution Control, 6.400%, 9/01/25 9/05 at 102 Aaa 26,522,000
3,790,000 Adrian Hospital Finance Authority (Emma L. Bixby
Medical Center), 8.500%, 7/01/09 7/00 at 102 N/R 4,139,892
6,000,000 Dearborn Economic Development Corporation
(Oakwood Obligated Group), 5.250%, 8/15/21 8/04 at 102 Aaa 5,572,080
MINNESOTA - 0.4%
2,000,000 Duluth Hospital (St. Luke's Hospital), 9.000%, 5/01/18
(Pre-refunded to 5/01/98) 5/98 at 102 AAA 2,265,740
6,000,000 St. Paul Housing and Redevelopment Authority
(HealthEast), 9.750%, 11/01/17 11/97 at 102 Baa 6,648,420
MONTANA - 0.4%
6,360,000 Billings Tax Increment, Urban Renewal, 9.375%, 3/01/08
(Pre-refunded to 3/01/98) 3/98 at 100 Aaa 7,098,841
NEVADA - 1.0%
15,000,000 Clark County General Obligation, 6.550%, 6/01/12 6/02 at 102 Aaa 16,090,650
4,000,000 Clark County Airport System, Alternative Minimum
Tax, 8.250%, 7/01/15 7/98 at 102 A 4,432,400
NEW HAMPSHIRE - 1.4%
24,625,000 New Hampshire Business Finance Authority, Pollution
Control (United Illuminating Company),
5.875%, 10/01/33 10/03 at 102 Baa3 22,433,129
5,070,000 New Hampshire Industrial Development Authority
(United Illuminating Company), Alternative Minimum
Tax, 8.000%, 12/01/14 12/99 at 103 Baa3 5,380,791
NEW YORK - 1.0%
1,250,000 Metropolitan Transportation Authority, Commuter
Facilities, Service Contract, 7.500%, 7/01/16
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 1,438,475
5,000,000 New York City General Obligation, 5.750%, 8/15/10 8/03 at 102 Baa1 4,823,500
11,780,000 New York City Municipal Water Finance Authority,
Water and Sewer System, 9.000%, 6/15/17
(Pre-refunded to 6/15/97) 6/97 at 102 Aaa 12,933,969
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NORTH CAROLINA - 7.6%
North Carolina Eastern Municipal Power Agency:
$ 23,610,000 7.750%, 1/01/15 (Pre-refunded to 1/01/96) 1/96 at 103 Aaa $ 24,472,001
20,730,000 7.500%, 1/01/15 (Pre-refunded to 1/01/97) 1/97 at 102 Aaa 22,017,540
39,365,000 7.250%, 1/01/21 1/97 at 102 A 40,648,299
North Carolina Municipal Power Agency No. 1 (Catawba):
10,900,000 5.750%, 1/01/15 1/03 at 100 A 10,417,893
26,815,000 8.500%, 1/01/17 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 27,559,116
13,895,000 7.000%, 1/01/18 (Pre-refunded to 1/01/96) 1/96 at 101 Aaa 14,108,983
1,105,000 7.000%, 1/01/18 1/96 at 101 A 1,119,045
8,405,000 6.000%, 1/01/20 1/96 at 100 A 8,200,170
6,100,000 Charlotte Convention Facility, Certificates of
Participation, 5.250%, 12/01/20 12/03 at 102 Aaa 5,770,661
OHIO - 2.1%
10,000,000 Ohio State Public Facilities Commission (Higher
Education Facilities), 8.250%, 6/01/99 (Pre-refunded
to 6/01/96) 6/96 at 102 A1 10,451,100
11,825,000 Cleveland Public Power System, First Mortgage,
8.375%, 8/01/17 (Pre-refunded to 8/01/97) 8/97 at 102 Aaa 12,912,782
Kensington Housing Development Corporation,
Alternative Minimum Tax:
1,740,000 8.000%, 12/20/08 12/98 at 103 AAA 1,904,952
6,365,000 8.125%, 12/20/31 12/98 at 103 AAA 6,837,920
8,915,000 Trumbull County (St. Joseph Riverside Hospital),
7.750%, 11/01/13 (Pre-refunded to 11/01/97) 11/97 at 102 AAA 9,721,629
OKLAHOMA - 0.7%
10,350,000 Comanche County Hospital Authority, 9.000%, 7/01/21
(Pre-refunded to 1/01/00) 1/00 at 102 AAA 12,373,115
2,350,000 Midwest City Memorial Hospital Authority,
7.375%, 4/01/22 4/02 at 102 BBB+ 2,420,171
PENNSYLVANIA - 2.0%
5,000,000 Pennsylvania Convention Center Authority,
6.750%, 9/01/19 9/04 at 102 Baa 5,248,300
18,850,000 Pennsylvania Intergovernmental Cooperative Authority
(Philadelphia Funding Program), 5.000%, 6/15/22 6/03 at 100 Aaa 16,921,834
Greater Johnstown Water Authority:
2,000,000 8.800%, 1/01/08 (Pre-refunded to 1/01/98) 1/98 at 100 BBB- 2,192,800
2,500,000 8.750%, 1/01/12 (Pre-refunded to 1/01/98) 1/98 at 100 BBB- 2,738,550
13,850,000 Philadelphia Water and Wastewater System,
5.500%, 6/15/14 6/03 at 102 Aaa 13,356,802
SOUTH CAROLINA - 3.2%
Piedmont Municipal Power Agency:
51,930,000 7.250%, 1/01/22 1/96 at 102 A 53,141,527
13,000,000 5.000%, 1/01/25 1/96 at 100 A 10,960,300
TEXAS - 13.0%
25,710,000 Texas Municipal Power Agency, 8.000%, 9/01/12
(Pre-refunded to 9/01/96) 9/96 at 102 AAA 27,101,425
Austin Combined Utility System:
24,265,000 12.500%, 11/15/07 No Opt. Call Aaa 40,133,339
13,670,000 6.000%, 5/15/15 5/96 at 100 A 13,689,957
12,525,000 8.000%, 11/15/16 (Pre-refunded to 5/15/01) 5/01 at 100 Aaa 14,699,591
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 1,660,000 Bexar County Housing Finance Corporation,
10.875%, 3/01/10 3/96 at 102 A $ 1,709,816
10,105,000 Brazos River Authority, Pollution Control (Texas Utilities
Electric Company), Alternative Minimum Tax,
9.250%, 3/01/18 3/98 at 102 Baa1 11,285,264
4,000,000 Brazos River Authority (Houston Light and Power
Company), 8.250%, 5/01/19 5/98 at 102 A3 4,400,520
6,670,000 Corpus Christi Housing Finance Corporation, Single
Family Mortgage, 7.700%, 7/01/11 7/01 at 103 Aaa 7,256,893
Harris County Toll Road:
2,210,000 8.625%, 8/15/07 (Pre-refunded to 8/15/97) 8/97 at 103 AAA 2,446,271
13,785,000 8.700%, 8/15/17 (Pre-refunded to 8/15/97) 8/97 at 103 AAA 15,275,434
6,550,000 7.400%, 8/15/17 (Pre-refunded to 2/15/97) 2/97 at 103 AAA 7,023,565
Harris County Toll Road, Senior Lien:
2,800,000 8.625%, 8/15/07 (Pre-refunded to 8/15/97) 8/97 at 103 AAA 3,099,348
3,500,000 8.700%, 8/15/17 (Pre-refunded to 8/15/97) 8/97 at 103 AAA 3,878,420
28,845,000 Houston Sewer System, 8.125%, 12/01/17 (Pre-refunded
to 12/01/97) 12/97 at 102 Aaa 31,745,076
5,025,000 Houston Water System, 8.200%, 12/01/16
(Pre-refunded to 12/01/96) 12/96 at 102 AAA 5,356,499
16,410,000 Nueces County Hospital District, 9.000%, 7/01/16
(Pre-refunded to 7/01/96) 7/96 at 102 1/2 BBB 17,343,565
5,000,000 San Antonio Electric and Gas System, 5.000%, 2/01/16 2/01 at 100 Aa1 4,590,700
26,785,000 Southeast Texas Housing Finance Corporation,
0.000%, 11/01/14 No Opt. Call BBB- 3,597,760
Texarkana Health Facilities Development Corporation
(Wadley Regional Medical Center):
4,110,000 8.400%, 10/01/03 10/97 at 102 A- 4,440,032
16,030,000 8.500%, 10/01/12 10/97 at 102 A- 17,309,353
9,200,000 Travis County Health Facilities Development Corporation
(St. David's Community Hospital), 8.375%, 11/01/17 11/97 at 102 Aaa 10,068,020
Weslaco Health Facilities Development Corporation
(Knapp Medical Center):
4,735,000 10.300%, 6/01/08 (Pre-refunded to 6/01/98) 6/98 at 101 AAA 5,410,874
3,350,000 10.375%, 6/01/16 (Pre-refunded to 6/01/98) 6/98 at 101 AAA 3,883,990
5,750,000 5.375%, 6/01/23 1/04 at 102 AAA 5,411,613
UTAH - 9.0%
Intermountain Power Agency:
45,015,000 7.875%, 7/01/14 7/96 at 102 Aa 47,019,518
2,500,000 5.250%, 7/01/14 No Opt. Call Aa 2,378,450
20,805,000 6.000%, 7/01/15 7/96 at 100 Aa 20,818,315
8,695,000 7.500%, 7/01/16 7/96 at 102 Aa 9,058,103
22,755,000 7.750%, 7/01/17 (Pre-refunded to 7/01/96) 7/96 at 102 Aaa 23,795,586
10,000,000 5.250%, 7/01/17 7/03 at 102 Aa 9,366,600
12,140,000 7.200%, 7/01/19 7/97 at 102 Aa 12,817,533
5,405,000 5.750%, 7/01/20 7/96 at 100 Aa 5,323,979
10,500,000 5.500%, 7/01/20 7/03 at 102 Aa 9,989,490
5,500,000 8.625%, 7/01/21 7/97 at 102 Aa 5,951,275
10,000,000 6.000%, 7/01/21 1/96 at 100 Aa 9,999,100
9,250,000 6.000%, 7/01/23 7/99 at 100 Aa 9,274,698
20,000,000 5.000%, 7/01/23 7/03 at 100 Aa 17,619,800
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
VIRGINIA - 0.4%
$ 2,000,000 Virginia Housing Development Authority,
9.450%, 11/01/12 1/98 at 102 AA $ 2,161,240
6,120,000 Virginia Transportation Board, 6.000%, 5/15/19 5/98 at 102 Aa 6,187,320
WASHINGTON - 5.7%
Washington Public Power Supply System, Nuclear
Project No. 1:
1,075,000 14.375%, 7/01/01 No Opt. Call Aaa 1,571,489
900,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 1,016,774
1,675,000 15.000%, 7/01/17 (Pre-refunded to 7/01/96) 7/96 at 103 Aaa 1,845,850
9,200,000 5.700%, 7/01/17 7/03 at 102 Aaa 9,003,304
Washington Public Power Supply System Nuclear
Project No. 2:
6,500,000 5.375%, 7/01/10 7/04 at 102 Aa 6,263,204
11,390,000 5.750%, 7/01/12 7/03 at 102 Aa 11,015,839
6,000,000 5.700%, 7/01/12 1/96 at 101 Aa 5,943,480
Washington Public Power Supply System, Nuclear
Project No. 3:
11,510,000 5.625%, 7/01/12 7/03 at 102 Aa 11,075,728
20,000,000 5.400%, 7/01/12 7/03 at 102 Aa 18,428,600
2,000,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 2,259,500
5,000,000 5.375%, 7/01/15 7/03 at 102 Aa 4,644,300
8,000,000 5.600%, 7/01/17 7/03 at 102 Aaa 7,846,880
20,975,000 6.500%, 7/01/18 7/01 at 102 Aa 21,422,606
Tacoma Department of Public Utilities Light Division:
6,035,000 9.375%, 1/01/15 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 6,210,135
4,830,000 9.375%, 1/01/15 (Pre-refunded to 1/01/96) 1/96 at 102 A+ 4,969,925
WISCONSIN - 1.7%
16,875,000 Wisconsin Health and Educational Facilities Authority
(Sisters of the Sorrowful Mother Ministry),
5.500%, 8/15/19 8/03 at 102 Aaa 16,047,111
20,085,000 Wisconsin Public Power Supply System,
5.250%, 7/01/21 7/03 at 102 Aaa 18,782,688
WYOMING - 0.1%
1,500,000 Green River-Rock Springs, Joint Water Board,
8.500%, 12/01/07 6/98 at 101 Baa 1,660,590
$2,014,735,485 Total Investments - (cost $1,775,255,208) - 95.9% 1,925,175,945
==============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 3,500,000 Gulf Coast Waste Disposal Authority, Pollution Control
==============
(Amoco Oil Company Project), Series 1992, Variable
Rate Demand Bonds, 3.900%, 10/01/17t VMIG-1 3,500,000
Other Assets Less Liabilities - 3.9% 77,774,367
Net Assets - 100% $2,006,450,312
==============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 66 $ 807,408,500 42%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 32 343,761,498 18
PORTFOLIO OF A+ A1 6 80,601,682 4
INVESTMENTS A, A- A, A2, A3 22 274,295,929 14
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 34 331,722,142 17
TEMPORARY B+, B, B- B1, B, B2, B3 1 11,875,000 1
INVESTMENTS): Non-rated Non-rated 13 75,511,194 4
TOTAL 174 $1,925,175,945 100%
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
Con. Rating is conditional. Bonds for which the security depends upon the
completion of some act or the fulfillment of some condition are rated
conditionally. These are bonds secured by (a) earnings by projects under
construction, (b) earnings of projects unseasoned in operation experience, (c)
rentals which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches Parenthetical rating denotes probable
credit stature upon completion of construction or elimination of basis of
condition.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL INCOME FUND, INC. (NMI)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA - 2.2%
$ 1,150,000 Foothill/Eastern Transportation Corridor Agency,
6.000%, 1/01/34 1/05 at 102 BBB- $ 1,088,395
1,000,000 Pomona Public Financing Authority (Southwest Pomona
Redevelopment Project), 5.500%, 2/01/08 2/04 at 102 BBB+ 944,940
COLORADO - 5.2%
City and County of Denver Airport System, Alternative
Minimum Tax:
1,065,000 8.750%, 11/15/23 11/01 at 102 Baa 1,248,617
1,305,000 8.500%, 11/15/23 11/00 at 102 Baa 1,487,335
2,000,000 7.250%, 11/15/23 11/02 at 102 Baa 2,125,820
CONNECTICUT - 1.2%
1,000,000 Willimantic Housing Authority (Village Heights
Apartments), 8.000%, 10/20/30 10/05 at 105 AAA 1,147,290
DISTRICT OF COLUMBIA - 2.0%
1,715,000 District of Columbia Housing Finance Agency, Single
Family Mortgage, Alternative Minimum Tax,
8.375%, 6/01/19 6/98 at 102 AAA 1,837,451
FLORIDA - 9.4%
1,000,000 Florida Community Services Corporation, Suburban
Utilities, 8.625%, 10/01/03 (Pre-refunded to 10/01/98) 10/98 at 102 N/R 1,138,210
975,000 Florida Housing Finance Agency, Alternative Minimum
Tax, 8.300%, 6/01/20 12/98 at 103 Aaa 1,044,986
1,750,000 Dade County Industrial Development Authority (Miami
Cerebral Palsy Residential Services), 8.000%, 6/01/22 6/05 at 102 N/R 1,784,983
1,065,000 Gateway Centre Development District, Special
Assessment, 9.125%, 1/01/09 1/98 at 103 N/R 1,127,420
3,160,000 Greater Orlando Aviation Authority, Alternative
Minimum Tax, 8.375%, 10/01/16 10/98 at 102 A1 3,533,133
GEORGIA - 2.8%
2,350,000 Burke County Development Authority (Georgia Power
Company), Alternative Minimum Tax,
9.375%, 12/01/17 12/97 at 102 A1 2,607,114
ILLINOIS - 9.0%
Illinois Health Facilities Authority (Hinsdale Hospital):
1,010,000 9.500%, 11/15/19 (Pre-refunded to 11/15/00) 11/00 at 102 BBB 1,250,239
560,000 9.500%, 11/15/19 11/00 at 102 BBB 659,406
1,300,000 Illinois Health Facilities Authority (Northern Illinois
Medical Center), 6.000%, 9/01/19 9/03 at 102 A- 1,236,716
2,000,000 Illinois Health Facilities Authority (Illinois Masonic
Medical Center), 5.500%, 10/01/19 10/03 at 102 A 1,798,980
3,000,000 Illinois Health Facilities Authority (Friendship Village
of Schaumburg), 9.000%, 12/01/08 (Pre-refunded
to 12/01/98) 12/98 at 102 AAA 3,447,060
INDIANA - 1.9%
1,750,000 Indiana Bond Bank, 6.000%, 2/01/16 2/04 at 102 A 1,727,618
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
KENTUCKY - 3.7%
$ 1,235,000 Kenton County Airport Board (Greater Cincinnati
International Airport), Alternative Minimum Tax,
8.250%, 3/01/15 3/98 at 102 A $ 1,358,204
1,915,000 Muhlenberg County Hospital (Muhlenberg Community
Hospital), 9.500%, 8/01/10 8/98 at 102 N/R 2,102,536
LOUISIANA - 4.1%
Louisiana Public Facilities Authority (Comm-Care
Corporation):
950,000 11.000%, 2/01/04 No Opt. Call BBB 1,182,864
2,000,000 11.000%, 2/01/14 No Opt. Call BBB 2,664,880
MARYLAND - 2.3%
2,000,000 Anne Arundel County, Multi-Family Housing (Twin
Coves Project), Alternative Minimum Tax,
7.450%, 12/01/24 (Mandatory put 12/01/03) No Opt. Call BBB+ 2,108,860
MASSACHUSETTS - 4.0%
3,000,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), 9.000%, 7/01/15 7/01 at 103 N/R 3,289,740
400,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), Alternative Minimum
Tax, 9.250%, 7/01/15 7/01 at 103 N/R 440,648
NEW HAMPSHIRE - 2.9%
3,000,000 New Hampshire Business Finance Authority, Pollution
Control (United Illuminating Company),
5.875%, 10/01/33 10/03 at 102 Baa3 2,732,970
NEW MEXICO - 2.9%
2,545,000 Belen Nursing Home (Belen Health Care Ltd.),
10.250%, 10/01/13 10/98 at 103 N/R 2,669,171
NEW YORK - 7.8%
3,000,000 New York State Medical Care Facilities Finance Agency,
FHA-Insured Mortgage (Catholic Medical Center),
8.300%, 2/15/22 (Pre-refunded to 2/15/98) 2/98 at 102 AAA 3,335,760
2,500,000 New York State Medical Care Facilities Finance Agency
(Brookdale Hospital Medical Center), 6.800%, 8/15/12 2/05 at 102 Baa 2,605,750
1,250,000 New York City General Obligation, 6.625%, 2/15/25 2/05 at 101 Baa1 1,283,838
NORTH CAROLINA - 2.1%
1,775,000 North Carolina Eastern Municipal Power Agency,
8.000%, 1/01/21 (Pre-refunded to 1/01/98) 1/98 at 102 Aaa 1,957,310
OHIO - 2.1%
Franklin County, Hospital Facilities (Ohio Presbyterian
Retirement Services):
1,000,000 8.750%, 7/01/21 7/01 at 103 N/R 1,063,380
1,000,000 6.500%, 7/01/23 7/03 at 102 N/R 926,500
OKLAHOMA - 6.1%
1,500,000 Oklahoma County Industrial Authority (Oklahoma
Blood Institute), 9.000%, 7/01/03 1/96 at 102 N/R 1,537,410
3,585,000 Comanche County Hospital Authority, 8.050%, 7/01/16
(Pre-refunded to 7/01/99) 7/99 at 102 AAA 4,107,728
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
OREGON - 1.0%
$ 1,000,000 Springfield Hospital Facility Authority (McKenzie-
Willamette Hospital), 6.375%, 8/01/08 8/04 at 100 Ba1 $ 964,010
PENNSYLVANIA - 3.8%
1,000,000 Pennsylvania Convention Center Authority,
6.750%, 9/01/19 9/04 at 102 Baa 1,049,660
2,300,000 Allegheny County (Greater Pittsburgh International
Airport), Alternative Minimum Tax, 8.250%, 1/01/16 1/98 at 102 Aaa 2,514,451
RHODE ISLAND - 1.8%
1,610,000 Rhode Island Housing and Mortgage Finance
Corporation, Alternative Minimum Tax,
8.250%, 10/01/22 10/98 at 102 AA+ 1,716,984
SOUTH CAROLINA - 2.1%
1,750,000 Charleston County Resource Recovery (Foster Wheeler),
Alternative Minimum Tax, 9.250%, 1/01/10 1/98 at 103 A 1,952,142
TEXAS - 10.5%
1,055,000 Alliance Airport Authority (American Airlines),
Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 1,119,450
4,000,000 Brazos River Authority (Houston Lighting and Power
Company), 7.875%, 11/01/18 11/96 at 102 A3 4,169,000
3,000,000 Harris County Toll Road, Senior Lien, 8.300%, 8/15/17
(Pre-refunded to 8/15/98) 8/98 at 103 AAA 3,405,930
910,000 Hidalgo County Housing Finance Corporation, Single
Family Mortgage (GNMA and FNMA), Alternative
Minimum Tax, 7.000%, 10/01/27 4/04 at 102 Aaa 927,435
WASHINGTON - 4.4%
1,240,000 Bellingham Housing Authority (Cascade Meadows
Project), 7.100%, 11/01/23 11/04 at 100 A1 1,300,424
2,500,000 Yakima-Tieton Irrigation District, 8.400%, 6/01/98
(Pre-refunded to 6/01/98) 6/98 at 100 Baa1 2,761,474
$82,175,000 Total Investments - (cost $82,284,987) - 95.3% 88,484,222
===========
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 300,000 North Central Texas Health Facilities Development
===========
Corporation (Presbyterian Medical Center), Variable
Rate Demand Bonds, 3.900%, 12/01/15t No Opt. Call VMIG-1 300,000
Other Assets Less Liabilities - 4.4% 4,066,118
Net Assets - 100% $92,850,340
===========
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 10 $23,725,401 27%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 1 1,716,984 2
PORTFOLIO OF A+ A1 3 7,440,671 8
INVESTMENTS A, A- A, A2, A3 6 12,242,660 14
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 16 26,314,498 30
TEMPORARY BB+, BB, BB- Ba1, Ba, Ba2, Ba3 1 964,010 1
INVESTMENTS): Non-rated Non-rated 10 16,079,998 18
TOTAL 47 $88,484,222 100%
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
<CAPTION>
NUV NMI
<S> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $1,925,175,945 $88,484,222
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 3,500,000 300,000
Cash 50,440 84,867
Receivables:
Interest 47,292,612 1,971,077
Investments sold 55,231,081 2,620,108
Other assets 1,038,721 5,412
-------------- -----------
Total assets 2,032,288,799 93,465,686
-------------- -----------
Liabilities
Payable for investments purchased 13,608,602 --
Accrued expenses:
Management fees (note 6) 1,000,147 51,295
Other 994,363 71,600
Dividends payable 10,235,375 492,451
-------------- -----------
Total liabilities 25,838,487 615,346
-------------- -----------
Net assets (note 7) $2,006,450,312 $92,850,340
============== ===========
Shares outstanding 194,959,522 7,755,128
============== ===========
Net asset value per share outstanding (net assets divided by
shares outstanding) $ 10.29 $ 11.97
============== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year ended October 31, 1995
<CAPTION>
NUV NMI
<S> <C> <C>
Investment Income
Tax-exempt interest income (note 1) $138,518,068 $6,707,029
------------ ----------
Expenses:
Management fees (note 6) 11,820,574 591,564
Shareholders' servicing agent fees and expenses 819,014 43,546
Custodian's fees and expenses 197,094 43,672
Directors' fees and expenses (note 6) 26,347 918
Professional fees 57,529 23,897
Shareholders' reports--printing and mailing expenses 566,507 35,457
Stock exchange listing fees 134,989 14,013
Investor relations expense 57,843 3,814
Other expenses 100,990 8,829
------------ ----------
Total expenses 13,780,887 765,710
------------ ----------
Net investment income 124,737,181 5,941,319
------------ ----------
Realized and Unrealized Gain
from Investments
Net realized gain from investment transactions (note 3) 15,522,867 237,873
Net change in unrealized appreciation or depreciation
of investments 74,935,192 3,183,051
------------ ----------
Net gain from investments 90,458,059 3,420,924
------------ ----------
Net increase in net assets from operations $215,195,240 $9,362,243
============ ==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NUV NMI
Year ended Year ended Year ended Year ended
10/31/95 10/31/94 10/31/95 10/31/94
<S> <C> <C> <C> <C>
Operations
Net investment income $ 124,737,181 $ 121,943,733 $ 5,941,319 $ 5,948,601
Net realized gain from investment transactions 15,522,867 5,598,178 237,873 134,281
Net change in unrealized appreciation or depreciation
of investments 74,935,192 (154,735,638) 3,183,051 (7,067,094)
-------------- -------------- ----------- -----------
Net increase (decrease) in net assets from operations 215,195,240 (27,193,727) 9,362,243 (984,212)
-------------- -------------- ----------- -----------
Distributions to Shareholders (note 1)
From undistributed net investment income (126,614,581) (124,379,738) (6,059,023) (6,294,427)
From accumulated net realized gains from investment
transactions (5,602,068) (10,087,141) -- --
-------------- -------------- ----------- -----------
Decrease in net assets from distributions to shareholders (132,216,649) (134,466,879) (6,059,023) (6,294,427)
-------------- -------------- ----------- -----------
Capital Share Transactions (note 2)
Net proceeds from sale of shares -- 251,676,785 -- --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions from net investment income
and from net realized gains from investment transactions 4,460,428 17,703,053 548,302 1,143,113
-------------- -------------- ----------- -----------
Net increase in net assets derived from capital share
transactions 4,460,428 269,379,838 548,302 1,143,113
-------------- -------------- ----------- -----------
Net increase (decrease) in net assets 87,439,019 107,719,232 3,851,522 (6,135,526)
Net assets at beginning of year 1,919,011,293 1,811,292,061 88,998,818 95,134,344
-------------- -------------- ----------- -----------
Net assets at end of year $2,006,450,312 $1,919,011,293 $92,850,340 $88,998,818
============== ============== =========== ===========
Balance of undistributed net investment income at end of year $ 1,367,050 $ 3,244,450 $ 63,366 $ 181,070
============== ============== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At October 31, 1995, the National Funds (the "Funds") covered in this report
and their corresponding New York Stock Exchange symbols are Nuveen Municipal
Value Fund, Inc. (NUV) and Nuveen Municipal Income Fund, Inc. (NMI).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at amortized cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Funds have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At October 31, 1995, there were no such purchase commitments in
either of the Funds.
<PAGE>
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Federal Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their net
investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains as amounts in excess of $.001 per share.
Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal
income tax, to retain such tax-exempt status when distributed to shareholders
of the Funds. All income dividends paid during the year ended October 31,
1995, have been designated Exempt Interest Dividends.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from securities transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of net realized capital gains, if
applicable.
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about
Derivative Financial Instruments and Fair Value of Financial Instruments which
prescribes disclosure requirements for transactions in certain derivative
financial instruments including futures, forward, swap, and option contracts,
and other financial instruments with similar characteristics. Although the
Funds are authorized to invest in such financial instruments, and may do so in
the future, they did not make any such investments during the year ended
October 31, 1995, other than occasional purchases of high quality synthetic
money market securities which were held temporarily pending the re-investment
in long-term portfolio securities.
<PAGE>
<TABLE>
2. Fund Shares
Transactions in shares were as follows:
<CAPTION>
NUV NMI
Year ended Year ended Year ended Year ended
10/31/95 10/31/94 10/31/95 10/31/94
<S> <C> <C> <C> <C>
Shares sold in connection with rights offering* -- 26,447,315 -- --
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions 443,309 1,697,900 46,191 90,804
------- ---------- ------ ------
Net increase 443,309 28,145,215 46,191 90,804
======= ========== ====== ======
<FN>
* NUV issued to shareholders of record on December 20, 1993, one
non-transferable right for each common share held which entitled shareholders
to subscribe for additional shares at the rate of one share for each three
rights received. In January, 1994, based on subscriptions received, the Fund
issued 26,447,315 additional shares and recorded proceeds of $251,676,785, net
of $1,296,779 costs of the offering.
</TABLE>
<PAGE>
<TABLE>
3. Securities Transactions
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments for the year ended October
31,1995, were as follows:
<CAPTION>
NUV NMI
<S> <C> <C>
PURCHASES
Investments in municipal securities $244,698,418 $13,334,640
Temporary municipal investments 112,100,000 13,400,000
SALES AND MATURITIES
Investments in municipal securities 292,550,358 15,809,742
Temporary municipal investments 111,600,000 13,100,000
============ ===========
At October 31, 1995, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
At October 31, 1995, NMI had an unused capital loss carryover of $184,075
available for federal income tax purposes to be applied against future
security gains, if any. If not applied, the carryover will expire in the year
2001.
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO SHAREHOLDERS
On November 1, 1995, the Funds declared dividend distributions from their
ordinary income which were paid December 1, 1995, to shareholders of record on
November 15, 1995, as follows:
<CAPTION>
NUV NMI
<S> <C> <C>
Dividend per share $.0525 $.0635
====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 1995, were as follows:
<CAPTION>
NUV NMI
<S> <C> <C>
Gross unrealized:
Appreciation $162,141,691 $6,685,674
Depreciation (12,220,954) (486,439)
------------ ----------
Net unrealized appreciation $149,920,737 $6,199,235
============ ==========
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each
Fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<CAPTION>
Average daily net asset value NUV
<S> <C>
For the first $500,000,000 .35 of 1%
For the next $500,000,000 .325 of 1
For net assets over $1,000,000,000 .3 of 1
<CAPTION>
Average daily net asset value NMI
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
In addition, NUV pays to the Adviser an annual management fee, payable
monthly, based on gross interest income as follows:
<CAPTION>
Gross interest income NUV
<S> <C>
For the first $50,000,000 4.125 of 1%
For the next $50,000,000 4.000 of 1
For gross income over $100,000,000 3.875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors who are affiliated with the Adviser
or to their officers, all of whom receive remuneration for their services to
the Funds from the Adviser.
</TABLE>
<PAGE>
<TABLE>
7. COMPOSITION OF NET ASSETS
At October 31, 1995, net assets consisted of:
<CAPTION>
NUV NMI
<S> <C> <C>
Shares, $.01 par value per share $ 1,949,595 $ 77,551
Paid-in surplus 1,837,690,063 86,694,263
Balance of undistributed net investment income 1,367,050 63,366
Accumulated net realized gain (loss) from investment transactions 15,522,867 (184,075)
Net unrealized appreciation or depreciation of investments 149,920,737 6,199,235
-------------- ------------
Net assets $2,006,450,312 $ 92,850,340
============== ============
Authorized shares:
Common 350,000,000 200,000,000
============== ============
</TABLE>
<PAGE>
<TABLE>
8. Investment Composition
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At October 31, 1995, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NUV NMI
<S> <C> <C>
Revenue Bonds:
Electric Utilities 24% --%
Health Care Facilities 10 17
Pollution Control Facilities 6 16
Transportation 10 15
Housing Facilities 7 11
Water / Sewer Facilities 5 --
Other 6 11
General Obligation Bonds 3 6
Escrowed Bonds 29 24
---- ----
100% 100%
==== ====
Certain long-term and intermediate-term investments owned by the Funds are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S. Government agency
securities, either of which ensure the timely payment of principal and
interest in the event of default (45% for NUV and 27% for NMI). Such insurance
or escrow, however, does not guarantee the market value of the municipal
securities or the value of either of the Funds' shares.
All temporary investments in short-term municipal securities have credit
enhancements (letters of credit, guarantees or insurance) issued by third
party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
9. Other Matters
In connection with the Rights Offering described in note 2, certain legal
actions have been filed by NUV shareholders in federal district court in
Chicago against (1) John Nuveen & Co. Incorporated, Nuveen Advisory Corp., and
the directors of the Fund, alleging that the defendants violated federal and
state laws and the Fund's articles of incorporation in connection with the
Rights Offering and (2) the Fund's former outside legal counsel and in-house
counsel to John Nuveen & Co. Incorporated alleging, among other things,
negligence and professional malpractice. A similar legal action has also been
filed by an NUV shareholder in state court in Minnesota against the above
defendants (excluding the Fund's former outside counsel) which makes similar
allegations. Certain of the claims in these actions are asserted on behalf of
the Fund shareholders and certain are asserted on behalf of the Fund. The
defendants have denied the allegations and are defending the suits which seek
unspecified damages. The Fund's Board of Directors has created a committee,
comprised of outside directors who are not defendants in the suits, to
investigate the claims being pursued in the Fund's name and to explore all
options. The committee has prepared a report of its investigation which will
remain confidential until the court rules on certain motions. While there can
be no assurance as to the outcome of these suits, based on their current
status, Fund management believes that they will not have a material adverse
effect on the Fund.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<CAPTION>
Operating performance
Net
realized and
Net asset unrealized Dividends Distributions
value Net gain (loss) from net from
beginning investment from investment capital
of period income investments income gains
NUV
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 $ 9.870 $.640 $.459 $(.650) $(.029)
1994 10.890 .649 (.942)** (.666) (.061)
1993 10.510 .695 .385 (.690) (.010)
1992 10.430 .709 .133 (.709) (.053)
1991 9.970 .714 .474 (.714) (.014)
1990 10.140 .714 (.140) (.714) (.030)
1989 9.940 .714 .228 (.717) (.025)
1988 9.140 .682 .800 (.682) --
6/17/87 to
10/31/87 9.350 .162 (.230) (.131) --
<CAPTION>
NMI
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 11.540 .768 .445 (.783) --
1994 12.490 .775 (.904) (.821) --
1993 12.060 .821 .429 (.819) (.001)
3 mos. ended
10/31/92 12.410 .205 (.342) (.213) --
Year ended 7/31,
1992 11.900 .845 .572 (.852) (.055)
1991 11.710 .855 .176 (.841) --
1990 11.810 .842 (.100) (.842) --
1989 11.150 .828 .649 (.817) --
4/20/88 to
7/31/88 11.210 .151 (.010) (.095) --
<PAGE>
<CAPTION>
Per Total
Organization share investment Total
and Net asset market return return
offering value end value end on market on net asset
costs of period of period valuet valuet
NUV
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 $ -- $10.290 $ 9.750 11.50% 11.51%
1994 -- 9.870 9.375 (12.59) (2.81)
1993 -- 10.890 11.500 11.16 10.56
1992 -- 10.510 11.000 8.33 8.33
1991 -- 10.430 10.875 18.01 12.35
1990 -- 9.970 9.875 6.28 5.88
1989 -- 10.140 10.000 11.84 9.86
1988 -- 9.940 9.625 23.66 16.74
6/17/87 to
10/31/87 (.011) 9.140 8.375 (15.10) (.84)
<CAPTION>
NMI
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 -- 11.970 11.375 11.95 10.86
1994 -- 11.540 10.875 (14.77) (1.08)
1993 -- 12.490 13.625 11.47 10.69
3 mos. ended
10/31/92 -- 12.060 13.000 (2.15) (1.12)
Year ended 7/31,
1992 -- 12.410 13.500 18.34 12.44
1991 -- 11.900 12.250 9.58 9.20
1990 -- 11.710 12.000 7.32 6.57
1989 -- 11.810 12.000 19.90 13.76
4/20/88 to
7/31/88 (.106) 11.150 10.750 (9.65) .31
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio of
Ratio of net
expenses to investment
Net assets average income Portfolio
end of period net to average turnover
(in thousands) assets net assets rate
NUV
<S> <C> <C> <C> <C>
Year ended 10/31,
1995 $2,006,450 .70% 6.35% 13%
1994 1,919,011 .70 6.31 7
1993 1,811,292 .74 6.45 8
1992 1,726,311 .77 6.75 8
1991 1,689,882 .83 6.98 7
1990 1,595,189 .86 7.10 5
1989 1,613,404 .89 7.13 7
1988 1,572,110 .94 7.12 42
6/17/87 to
10/31/87 1,445,069 .80* 4.99* --
<CAPTION>
NMI
<S> <C> <C> <C> <C>
Year ended 10/31,
1995 92,850 .84 6.53 15
1994 88,999 .85 6.45 26
1993 95,134 .86 6.67 8
3 mos. ended
10/31/92 90,854 .90* 6.67* --
Year ended 7/31,
1992 93,216 .76 7.02 2
1991 88,384 .69 7.33 3
1990 86,359 .72 7.24 7
1989 86,535 .73 7.25 35
4/20/88 to
7/31/88 81,375 .73* 5.21* --
<FN>
* Annualized.
** Includes ($.179) effect of the Fund's Rights Offering of shares at a price
below NAV and costs associated with the offering.
t Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if any,
and changes in net asset value per share.
</TABLE>
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Shareholders
Nuveen Municipal Value Fund, Inc.
Nuveen Municipal Income Fund, Inc.
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Municipal Value Fund, Inc. and Nuveen
Municipal Income Fund, Inc. as of October 31, 1995, and the related statements
of operations and changes in net assets for the periods indicated therein and
the financial highlights for the periods since 1988. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and 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
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 investments
owned as of October 31, 1995, by correspondence with the custodian and
brokers. 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 positions of
Nuveen Municipal Value Fund, Inc. and Nuveen Municipal Income Fund, Inc. at
October 31, 1995, and the results of their operations, changes in their net
assets for the periods indicated therein and financial highlights for the
periods since 1988, in conformity with generally accepted accounting
principles.
Ernst & Young LLP
Chicago, Illinois
December 15, 1995
<PAGE>
Build your wealth automatically
Photographic image of Customer Service Rep at Nuveen.
Managing your portfolio takes skill, experience, and informed judgment, but
our efforts to help you build your wealth don't stop there. At Nuveen, we
offer a number of convenient ways to build your tax-free portfolio and earn
the tax-free income you need to achieve your financial goals.
Nuveen Exchange-traded fund Dividend Reinvestment Plan
Your Nuveen exchange-traded fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check, or can
be deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to set aside money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Income or capital gains taxes may be payable on dividends or
distributions that are reinvested. You'll also benefit from dollar-cost
averaging, a technique of investing at regular intervals, which allows you to
build a high-quality, tax-free portfolio conveniently and cost effectively
over time. All reinvestments are invested in full and fractional shares and
are kept in non-certificated form by the Plan Agent, Chase Manhattan Bank.
To make recordkeeping easy and convenient, each month you'll receive a
statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total number
of shares you own.
The shares you acquire by reinvesting will either be purchased on the open
market or be newly issued by the Fund. If the shares are trading at or above
net asset value at the time of valuation, the Fund will issue new shares at
the then-current market price. If the shares are trading at less than net
asset value, shares for your account will be purchased on the open market.
Dividends and distributions received to purchase shares in the open market
will be invested within 30 days of the dividend payment date; no interest will
be paid on dividends and distributions awaiting reinvestment. Because the
market price of shares may increase before purchases are completed, the
average purchase price per share may exceed the market price at the time of
valuation resulting in the acquisition of fewer shares than if the dividend or
distribution had been paid in shares issued by the Fund. A pro rata portion of
any applicable brokerage commissions on open market purchases will be paid by
Plan participants. These commissions usually will be lower than those charged
on individual transactions.
<PAGE>
You may, of course, change your distribution option or withdraw from the
Plan at any time, should your needs or situation change. Should you withdraw,
you can receive a certificate for all whole shares credited to your
reinvestment account and cash payment for fractional shares, or cash payment
for all reinvestment account shares, less brokerage commissions and a $2.50
service fee.
You also can reinvest if your shares are registered in the name of a
brokerage firm, bank, or other nominee. Just ask your investment adviser if
the firm will participate on your behalf. If not, it's easy to have the shares
registered in your name and to apply for a reinvestment account directly.
Participants whose shares are registered in the name of one firm may not be
able to transfer the shares to another firm and continue to participate in the
Plan.
The Fund reserves the right to amend or terminate the Plan at any time.
Although, the Fund reserves the right to amend the Plan to include a service
charge payable by the participants, there is no direct service charge to
participants in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll
in or withdraw from the Plan, speak with your investment adviser or call us
toll-free at 1.800.257.8787.
Photographic image of Customer Service Rep at Nuveen.
"When it comes to financial planning, your investment adviser knows your
situation best. And when we can give you the account information you need, our
motto is simple: We're here to help."
Photographic image of Customer Service Rep at Nuveen.
"At Nuveen, we make reinvesting easy. A phone call is all it takes to set up
your reinvestment account."
<PAGE>
Useful information
Photographic image of Customer Service Rep at Nuveen.
"When questions come up about your investment, we're happy to provide the
up-to-date information you and your adviser need."
Nuveen Shareholder Services:
1.800.257.8787
Call Monday through Friday, 9 a.m. to 6 p.m., EST for information on your
Nuveen Fund's current account balance, yield, dividend, net asset value,
closing price, and general information.
Dividend Reinvestment:
1.800.257.8787
Monday through Friday, 9 a.m. to 6 p.m., EST
Taking Stock Newsletter:
1.800.257.8787
Call Monday through Friday, 9 a.m. to 6 p.m., EST if you're not currently
getting our quarterly shareholder newsletter and would like to do so. We will
be happy to add your name to our mailing list.
Photographic image of woman seated and man standing behind her representing
Nuveen investors.
Many conservative investors are comfortable with Nuveen's emphasis on long
term value. That's why they depend on Nuveen for the tax-free income they need
to reach their goals.
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Your investment partner
Photographic image of John Nuveen, Sr., founder of Nuveen.
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships with these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent
financial planners, to bring the benefits of tax-free investing to you. These
advisers are experts at identifying your needs and recommending the best
solutions for your situation. Together we make a powerful team, helping you
create a successful investment plan that meets your needs today and in the
future.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF1-DEC 95
