Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
NUVEEN MUNICIPAL VALUE FUND, INC.
NUVEEN MUNICIPAL INCOME FUND, INC.
SEMIANNUAL REPORT/APRIL 30, 1995
Photo of man reading statement on porch.
CONTENTS
3 Dear shareholder
5 Answering your questions
8 Fund performance
9 Amendment to dividend reinvestment plan
10 Getting to know your fund
12 Portfolio of investments
27 Statement of net assets
28 Statement of operations
29 Statement of changes in net assets
30 Notes to financial statements
38 Financial highlights
<PAGE>
Dear shareholder
"Providing secure income remains our top priority"
Photo of Richard J. Franke, Chairman of the Board
The 12 months ended April 30, 1995, was a difficult period for the bond
markets. Since February 1994, the Federal Reserve Board has raised interest
rates seven times to fend off future inflation, and during this period the
prices of all bonds and bond funds declined. Since April 30, the bond markets
have seen marked improvement.
This period of unusually high volatility and uncertainty has brought home a
basic fact about fixed-income securities: interest rates are subject to
change, and sometimes the changes can have dramatic effects on net asset
values. At Nuveen, we believe that the best approach to tax-free investing in
such tumultuous times is to focus on quality and income dependability. By this
standard, in one of the most challenging periods the municipal market has seen
in years, your Fund continued to meet its objectives well, providing an
attractive level of tax-free income while holding portfolio values well in
light of market conditions.
Looking first at income, on April 30, Nuveen Municipal Value Fund's current
yield on share price was 6.44%, providing investors in the 36% federal income
tax bracket with a taxable equivalent yield of 10.06%. And investors in that
same tax bracket would need to earn at least 10.50% on a taxable alternative
to equal Nuveen Municipal Income Fund's 6.72% yield on its share price. These
taxable yields would be difficult to achieve on investments of comparable
quality.
As we have noted in past reports, the municipal market's supply and demand
fundamentals continue to be sound. To put these trends in perspective, in 1994
the supply of new municipal bonds declined by approximately 40% from 1993, a
trend expected to continue in 1995. At the same time, demand for tax-free
bonds, which has been subdued over the last 12 months as a result of the
market's extraordinary volatility, seems to be resuming its long-term upward
trend as investors recognize the exceptional yields tax-free bonds offer at
current price levels.
This combination of lower supply, which may be reduced further by the high
volume of bond calls expected in 1995, and the likelihood of rising demand
should help support municipal bond prices in the long term.
Through our value approach to investing--a disciplined approach to security
selection and portfolio construction supported by one of the largest and most
respected research teams in the municipal industry--we will continue to pursue
the objectives of your Fund: attractive tax-free income and the enhancement of
portfolio value relative to the municipal bond market.
In closing, I want to welcome new investors to the Nuveen Exchange-Traded
Funds and thank those who have been with us for some time. All of us at Nuveen
appreciate your confidence in our family of municipal bond funds, and we look
forward to helping you reach your tax-free investment objectives in the
future.
Sincerely,
Richard J. Franke
Chairman of the Board
June 15, 1995
<PAGE>
Answering your questions
We spoke recently with Tom Spalding, head of Nuveen's portfolio management
team, and asked him about developments in the municipal market and the outlook
for Nuveen's Tax-Free Exchange-Traded Funds.
How did my Fund hold its value compared with the market?
These have been difficult times for all fixed-income investors. The Bond Buyer
40 index--a measure of municipal market value--declined by 0.37% over the past
12 months and 30-year Treasury bonds declined by 0.90% during the year.
Similarly, the net asset value of Nuveen Municipal Value Fund posted a 0.39%
decline from a year earlier and Nuveen Municipal Income Fund's net asset value
declined 0.42% from levels of a year ago.
Viewed in that context, your Nuveen Fund held its value relatively well for
the 12 months ended April 30, 1995.
How does Nuveen's Research Department help support the value of the
Exchange-Traded Funds?
All bonds in a Nuveen portfolio have been carefully analyzed by the firm's
award-winning municipal bond research professionals. Each year, members of
Nuveen Research regularly conduct credit reviews, assemble surveillance
reports and analyze trends affecting tax-exempt investments in each sector,
such as healthcare and housing bonds.
Research professionals scrutinize economic, political and demographic
factors likely to affect market trends, and produce recommendations for us.
Then, we can make portfolio decisions based on research and relative market
value, to protect the income and credit quality of the bonds in the funds.
For example, our research assessment combined with our value assessment
helped us steer clear of uninsured Orange County bonds, which made news last
year when Orange County and the Orange County Investment Pool declared
bankruptcy.
Will bond calls affect my income or the stability of the net asset value of my
shares?
In general, bond calls can mean some reduction in income for investors in both
individual bonds and bond funds, because bonds issued when interest rates were
higher are replaced with lower-yielding bonds in today's market. The effect of
bond calls--both on income and net asset values--depends to some extent on the
age of a fund and the types of bonds in its portfolio.
Bond calls may have an effect on asset values especially for older funds
that hold high coupon bonds that may be subject to calls. These bonds also
often are priced at premiums to their par values and to their call prices. As
we saw last year, this premium is a "cushion" that can soften the effect of
rising and falling interest rates. As these bonds approach their call dates,
the premiums gradually approach the bonds' call prices, potentially reducing
net asset values.
Newer funds, on the other hand, primarily hold bonds priced at discounts to
their par values. As a result, these funds will experience fewer calls. At the
same time, these bonds are more sensitive to interest rate changes, both up
and down, and they are unaffected by the declining premium values related to
called bonds.
Of course, we manage all of our portfolios with calls in mind. As part of
our basic management process, we continually evaluate opportunities to sell
bonds approaching their call dates and to reinvest the proceeds in bonds we
think have high potential to provide above-market returns.
<PAGE>
<TABLE>
NUVEEN MUNICIPAL VALUE FUND, INC.
NUV
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends, plus a capital
gains distribution in December.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0550
6/94 $0.0550
7/94 $0.0550
8/94 $0.0550
9/94 $0.0550
10/94 $0.0550
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
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 6.44%
Taxable-equivalent yield 10.06%
Annual total return on NAV 6.71%
Taxable-equivalent total return 10.48%
Share price $10.25
NAV $10.12
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN MUNICIPAL INCOME FUND, INC.
NMI
Shareholders of NMI enjoyed a year of relatively steady monthly dividends,
with a modest dividend reduction in November reflecting the effect of bond
calls.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0685
6/94 $0.0685
7/94 $0.0685
8/94 $0.0685
9/94 $0.0685
10/94 $0.0685
11/94 $0.0665
12/94 $0.0665
1/95 $0.0665
2/95 $0.0665
3/95 $0.0665
4/95 $0.0665
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 6.72%
Taxable-equivalent yield 10.50%
Annual total return on NAV 6.74%
Taxable-equivalent total return 10.71%
Share price $11.875
NAV $11.80
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
Amendment to Dividend Reinvestment Plan
Effective October 1, 1995, your Fund's Dividend Reinvestment Plan will be
amended in order to enhance the ability of the Plan Agent to obtain the best
execution when making open-market purchases of Fund shares in connection with
the Plan. As of the effective date, the Plan Agent, United States Trust
Company of New York, may make Plan purchases in advance of the payment date of
the applicable Fund distribution, provided that settlement for such purchases
shall occur no earlier than the payment date for such distribution.
<PAGE>
Getting to know your fund
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, April 30, 1995) divided by its closing price per share on
that date.
Taxable equivalent yield
The return an investor subject to a given federal and state 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, this tax rate is
assumed to be 36% 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, less
the value of its preferred shares, divided by its total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
<PAGE>
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 common stock in the future
at such times and in such amounts as are deemed advisable. No shares were
repurchased during the 6-months ended April 30, 1995. Any future repurchases
will be reported to hareholders in the next annual or semiannual report.
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
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 $ 9,226,800
4,000,000 Medical Clinic Board of Jasper (Walker Regional
Medical Center), 6.375%, 7/01/18 7/02 at 102 Baa1 3,646,800
ARIZONA - 1.2%
6,725,000 Mesa General Obligation, 8.200%, 7/01/99
(Pre-refunded to 7/01/95) 7/95 at 103 A+ 6,971,135
10,400,000 Scottsdale Industrial Development Authority
(Scottsdale Memorial Hospital), 8.500%, 9/01/17 9/97 at 102 Aaa 11,408,176
5,830,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 BBB 6,209,416
ARKANSAS - 0.5%
10,000,000 Pulaski County Health Facilities Board (St. Vincent
Infirmary), 9.500%, 11/01/12 (Pre-refunded
to 11/01/95) 11/95 at 102 Aaa 10,434,100
CALIFORNIA - 3.9%
California Department of Water Resources (Central
Valley Project):
9,000,000 5.750%, 12/01/19 6/03 at 101 1/2 AA 8,535,060
16,500,000 4.750%, 12/01/24 12/03 at 101 AA 13,142,580
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 16,018,005
16,350,000 California Public Works Board (Regents of the
University of California), 5.500%, 6/01/21 6/03 at 102 Con(A1) 14,493,948
2,500,000 California Statewide Communities Development
Corporation (Pacific Homes), Certificates of
Participation, 6.000%, 4/01/17 4/03 at 102 A 2,371,575
5,000,000 California Statewide Communities Development
Authority (St. Joseph Health System),
5.500%, 7/01/14 7/03 at 102 AA 4,578,650
12,970,000 Los Angeles County Public Works Finance
Authority, 4.750%, 12/01/13 12/03 at 102 Aaa 10,999,598
6,850,000 Sacramento Municipal Utility District,
8.625%, 7/01/10 (Pre-refunded to 7/01/95) 7/95 at 102 AAA 7,039,334
COLORADO - 8.8%
19,185,000 Colorado Health Facilities Authority (Sisters of
Charity Health Care System), 5.250%, 5/15/14 5/04 at 102 AA- 17,242,519
12,500,000 Arvada Urban Renewal Authority, 8.750%, 3/01/06 3/97 at 101 B 10,875,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
COLORADO (CONTINUED)
City and County of Denver Airport System,
Alternative Minimum Tax:
$ 3,680,000 7.000%, 11/15/03 11/02 at 102 Baa $ 3,762,174
9,150,000 8.250%, 11/15/12 11/00 at 102 Baa 9,810,173
5,600,000 6.750%, 11/15/13 11/02 at 102 Baa 5,558,784
7,500,000 7.750%, 11/15/21 11/01 at 102 Baa 7,847,025
31,025,000 6.750%, 11/15/22 11/02 at 102 Baa 30,378,129
13,000,000 8.750%, 11/15/23 11/01 at 102 Baa 14,415,830
31,240,000 8.500%, 11/15/23 11/00 at 102 Baa 33,773,564
10,415,000 7.250%, 11/15/23 11/02 at 102 Baa 10,442,808
29,205,000 7.000%, 11/15/25 11/01 at 100 Baa 28,556,065
FLORIDA - 6.0%
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 4,277,605
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 7,750,470
Escambia County Health Facilities Authority
(Baptist Hospital):
810,000 8.000%, 10/01/95 No Opt. Call BBB+ 819,906
3,975,000 8.600%, 10/01/02 10/98 at 102 BBB+ 4,451,126
10,000,000 8.700%, 10/01/14 10/98 at 102 BBB+ 11,023,300
21,850,000 Jacksonville Electric Authority, 7.500%, 10/01/14
(Pre-refunded to 10/01/95) 10/95 at 101 1/2 AAA 22,475,566
Jacksonville Electric Authority (St. Johns River
Power Park System):
14,480,000 7.250%, 10/01/19 (Pre-refunded to 10/01/95) 10/95 at 101 1/2 Aaa 14,880,662
9,465,000 7.250%, 10/01/19 10/95 at 101 1/2 Aa1 9,700,016
5,000,000 Orlando Utilities Commission, 5.500%, 10/01/27 10/02 at 100 AA- 4,551,900
Palm Beach County Health Facilities Authority
(JFK Medical Center):
14,925,000 8.875%, 12/01/18 (Pre-refunded to 12/01/98) 12/98 at 102 BBB 17,154,944
10,785,000 8.875%, 12/01/18 12/98 at 102 BBB 11,814,968
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 9,690,848
GEORGIA - 3.1%
19,070,000 Georgia Municipal Electric Authority,
7.750%, 1/01/18 (Pre-refunded to 1/01/97) 1/97 at 102 Aaa 20,340,825
Burke County Development Authority, Pollution
Control (Georgia Power Company):
3,385,000 10.125%, 6/01/15 6/95 at 102 A3 3,467,729
28,105,000 10.500%, 11/01/15 11/95 at 102 A3 29,441,112
7,000,000 8.000%, 10/01/16 10/96 at 102 A3 7,355,950
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS - 6.4%
$ 6,360,000 Illinois Development Finance Authority, Industrial
Development (Plano Molding Co.), Alternative
Minimum Tax, 7.750%, 6/01/12 6/02 at 102 N/R $ 6,475,307
3,000,000 Illinois Development Finance Authority, Pollution
Control (Commonwealth Edison Company),
5.850%, 1/15/14 No Opt. Call Baa2 2,750,820
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+ 12,429,120
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 3,031,115
1,425,000 9.500%, 11/15/19 11/00 at 102 BBB 1,649,295
5,500,000 Illinois Health Facilities Authority (South Suburban
Hospital), 7.000%, 2/15/18 2/02 at 102 A 5,596,580
7,000,000 Illinois Health Facilities Authority (Swedish
American Hospital), 5.375%, 11/15/23 11/03 at 102 Aaa 6,113,590
14,000,000 Illinois Health Facilities Authority (Illinois Masonic
Medical Center), 5.500%, 10/01/19 10/03 at 102 A- 11,978,120
12,800,000 Illinois Health Facilities Authority
(Rush-Presbyterian-St. Luke's Medical Center),
5.250%, 11/15/20 11/03 at 102 Aaa 11,031,168
15,000,000 Illinois Sales Tax, 5.500%, 6/15/20 6/02 at 101 AAA 13,512,000
1,125,000 Chicago Metropolitan Water Reclamation District,
General Obligation, 7.000%, 1/01/11 No Opt. Call AA 1,234,519
12,535,000 Chicago O'Hare International Airport, Alternative
Minimum Tax, 8.000%, 1/01/08 1/97 at 102 A1 13,386,628
9,500,000 Chicago Public Building Commission (Board of
Education), 5.750%, 12/01/18 12/03 at 102 Aaa 8,939,500
Chicago Tax Increment Allocation (Stockyards
Industrial-Commercial Redevelopment Project):
9,860,000 9.000%, 1/01/11 1/01 at 102 N/R 11,190,213
5,200,000 9.250%, 1/01/14 No Opt. Call N/R 5,486,000
10,000,000 Regional Transportation Authority, 6.250%, 6/01/24 6/04 at 102 Aaa 9,867,300
1,925,000 Tri-City Regional Port District, Alternative
Minimum Tax, 9.650%, 7/01/07 7/98 at 102 N/R 2,228,553
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 5,503,850
4,500,000 Indianapolis Airport Authority (Federal Express
Corporation), Alternative Minimum Tax,
7.100%, 1/15/17 7/04 at 102 Baa2 4,614,705
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
INDIANA (CONTINUED)
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 $ 11,434,203
15,755,000 8.400%, 6/15/08 (Pre-refunded to 6/15/97) 6/97 at 102 AAA 17,207,611
South Bend Multi-Family Housing:
9,155,000 7.500%, 12/15/18 12/03 at 100 N/R 8,313,015
3,168,570 3.850%, 12/15/18 12/03 at 100 N/R 1,697,498
South Bend Multi-Family Housing, Alternative
Minimum Tax:
500,000 7.750%, 12/15/18 12/03 at 100 N/R 452,615
96,915 4.000%, 12/15/18 12/03 at 100 N/R 51,547
IOWA - 0.6%
Iowa Housing Finance Authority:
20,000 10.750%, 9/01/04 9/95 at 103 Aaa 20,463
110,000 10.750%, 9/01/09 9/95 at 103 Aaa 111,515
125,000,000 0.000%, 9/01/16 No Opt. Call Aaa 11,993,750
KANSAS - 0.3%
6,650,000 Newton Healthcare Corporation, 7.750%, 11/15/24 11/04 at 102 BBB- 6,704,996
KENTUCKY - 1.9%
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 23,579,805
12,500,000 Carroll County Pollution Control (Kentucky
Utilities Company), 7.450%, 9/15/16 9/02 at 102 Aa2 13,657,875
LOUISIANA - 1.4%
22,865,000 Louisiana Public Facilities Authority (Southern
Baptist Hospital), 8.000%, 5/15/12 No Opt. Call AAA 26,731,929
MASSACHUSETTS - 7.2%
11,595,000 Massachusetts Housing Finance Agency (GNMA),
9.125%, 12/01/20 12/95 at 102 Aaa 12,137,994
Massachusetts Housing Finance Agency, Alternative
Minimum Tax:
6,000,000 8.750%, 8/01/08 2/98 at 102 A+ 6,366,720
28,070,000 8.800%, 8/01/21 2/98 at 102 A+ 29,827,463
Massachusetts Housing Finance Authority, Insured
Rental Housing, Alternative Minimum Tax:
7,000,000 6.650%, 7/01/19 7/04 at 102 Aaa 7,151,340
6,050,000 6.750%, 7/01/28 7/04 at 102 Aaa 6,177,716
5,000,000 Massachusetts Industrial Finance Agency, Resource
Recovery (Semass Project), 9.000%, 7/01/15 7/01 at 103 N/R 5,405,250
<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 $ 31,818,611
1,740,000 8.750%, 7/01/18 7/97 at 102 A 2,036,757
Massachusetts Water Resources Authority:
24,405,000 6.000%, 4/01/20 4/00 at 100 A 23,637,707
20,185,000 5.500%, 7/15/22 7/02 at 100 A 18,287,408
MICHIGAN - 2.3%
19,235,000 Michigan Public Power Agency, 7.000%, 1/01/18
(Pre-refunded to 1/01/96) 1/96 at 101 AAA 19,721,838
2,050,000 Michigan Hospital Finance Authority (St. John
Hospital), 9.200%, 12/01/10 (Pre-refunded
to 12/01/95) 12/95 at 102 N/R 2,143,050
1,500,000 Michigan Hospital Finance Authority (Harper-Grace
and Huron Valley Hospitals), 9.450%, 10/01/98 10/95 at 102 A- 1,581,780
7,000,000 Michigan Hospital Finance Authority (Detroit
Medical Center), 7.500%, 8/15/11 8/01 at 102 A- 7,487,130
6,100,000 Michigan State University, 5.500%, 8/15/22 8/02 at 100 AA- 5,533,310
3,790,000 Adrian Hospital Finance Authority (Emma L. Bixby
Medical Center), 8.500%, 7/01/09 7/00 at 102 N/R 4,102,675
6,000,000 Dearborn Economic Development Corporation
(Oakwood Obligated Group), 5.250%, 8/15/21 8/04 at 102 Aaa 5,188,200
MINNESOTA - 0.5%
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 2,266,760
6,000,000 St. Paul Housing and Redevelopment Authority
(HealthEast Project), 9.750%, 11/01/17 11/97 at 102 BBB- 6,667,680
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 7,121,801
NEVADA - 0.2%
4,000,000 Clark County Airport System, Alternative
Minimum Tax, 8.250%, 7/01/15 7/98 at 102 A 4,355,160
NEW HAMPSHIRE - 1.4%
New Hampshire Industrial Development Authority
(United Illuminating Company), Alternative
Minimum Tax:
5,070,000 8.000%, 12/01/14 12/99 at 103 Baa3 5,294,500
24,625,000 5.875%, 10/01/33 10/03 at 102 Baa3 21,411,191
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
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 $ 1,415,688
5,000,000 New York City General Obligation, 5.750%, 8/15/10 8/03 at 102 A- 4,575,950
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 13,048,470
NORTH CAROLINA - 7.3%
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 24,832,054
20,730,000 7.500%, 1/01/15 (Pre-refunded to 1/01/97) 1/97 at 102 Aaa 22,028,942
37,625,000 7.250%, 1/01/21 1/97 at 102 A- 39,117,208
North Carolina Municipal Power Agency
No. 1 (Catawba):
26,815,000 8.500%, 1/01/17 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 28,026,770
13,895,000 7.000%, 1/01/18 (Pre-refunded to 1/01/96) 1/96 at 101 Aaa 14,240,986
1,105,000 7.000%, 1/01/18 1/96 at 101 A 1,127,918
8,405,000 6.000%, 1/01/20 1/96 at 100 A 7,861,617
6,100,000 Charlotte Convention Facility, Certificates of
Participation, 5.250%, 12/01/20 12/03 at 102 Aaa 5,475,787
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 10,569,500
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 12,957,362
Kensington Housing Development Corporation,
Alternative Minimum Tax:
1,805,000 8.000%, 12/20/08 12/98 at 103 AAA 1,936,097
6,365,000 8.125%, 12/20/31 12/98 at 103 AAA 6,687,769
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 9,705,493
OKLAHOMA - 0.6%
10,445,000 Comanche County Hospital Authority,
9.000%, 7/01/21 (Pre-refunded to 1/01/00) 1/00 at 102 AAA 12,322,593
PENNSYLVANIA - 1.3%
5,000,000 Pennsylvania Convention Center Authority,
6.750%, 9/01/19 9/04 at 102 BBB- 5,026,900
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 18,850,000 Pennsylvania Intergovernmental Cooperative
Authority (Philadelphia Funding Program),
5.000%, 6/15/22 6/03 at 100 Aaa $ 16,159,540
Greater Johnstown Water Authority:
2,000,000 8.800%, 1/01/08 (Pre-refunded to 1/01/98) 1/98 at 100 BBB- 2,197,840
2,500,000 8.750%, 1/01/12 (Pre-refunded to 1/01/98) 1/98 at 100 BBB- 2,744,850
SOUTH CAROLINA - 3.2%
Piedmont Municipal Power Agency:
51,930,000 7.250%, 1/01/22 1/96 at 102 A- 53,498,286
13,000,000 5.000%, 1/01/25 1/96 at 100 A- 10,549,630
TEXAS - 14.5%
25,710,000 Texas Municipal Power Agency, 8.000%, 9/01/12
(Pre-refunded to 9/01/96) 9/96 at 102 AAA 27,323,045
Austin Combined Utility Systems:
24,265,000 12.500%, 11/15/07 No Opt. Call Aaa 39,300,079
13,670,000 6.000%, 5/15/15 5/96 at 100 A 13,358,051
12,525,000 8.000%, 11/15/16 (Pre-refunded to 5/15/01) 5/01 at 100 Aaa 14,471,636
15,335,000 Bexar County Health Facilities Development
Corporation (Incarnate Word Health Services),
9.500%, 11/01/15 11/95 at 102 A 15,963,428
2,345,000 Bexar County Housing Finance Corporation,
10.875%, 3/01/10 9/95 at 102 BBB+ 2,436,713
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 11,244,238
4,000,000 Brazos River Authority (Houston Light and Power
Company), 8.250%, 5/01/19 5/98 at 102 A3 4,350,480
7,025,000 Corpus Christi Housing Finance Corporation, Single
Family Mortgage, 7.700%, 7/01/11 7/01 at 103 Aaa 7,589,178
Harris County Toll Road:
2,210,000 8.625%, 8/15/07 (Pre-refunded to 8/15/97) 8/97 at 103 AAA 2,456,128
13,785,000 8.700%, 8/15/17 (Pre-refunded to 8/15/97) 8/97 at 103 AAA 15,342,429
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 3,111,836
6,550,000 7.400%, 8/15/17 (Pre-refunded to 2/15/97) 2/97 at 103 AAA 7,056,381
3,500,000 8.700%, 8/15/17 (Pre-refunded to 8/15/97) 8/97 at 103 AAA 3,920,875
7,105,000 Harris County Health Facilities Development
Corporation (Memorial Hospital System),
9.625%, 6/01/15 6/95 at 102 A- 7,286,320
28,845,000 Houston Sewer System, 8.125%, 12/01/17
(Pre-refunded to 12/01/97) 12/97 at 102 Aaa 31,746,230
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 5,025,000 Houston Water System, 8.200%, 12/01/16
(Pre-refunded to 12/01/96) 12/96 at 102 AAA $ 5,398,358
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 17,605,797
5,000,000 San Antonio Electric and Gas System,
5.000%, 2/01/16 2/01 at 100 Aa1 4,341,000
31,165,000 Southeast Texas Housing Finance Corporation,
0.000%, 11/01/14 No Opt. Call BBB- 3,987,873
Texarkana Health Facilities Development Corporation
(Wadley Regional Medical Center):
4,110,000 8.400%, 10/01/03 10/97 at 102 A- 4,514,917
16,030,000 8.500%, 10/01/12 10/97 at 102 A- 17,479,593
9,200,000 Travis County Health Facilities Development
Corporation (St. David's Community Hospital),
8.375%, 11/01/17 11/97 at 102 Aaa 10,074,552
Weslaco Health Facilities Development Corporation
(Knapp Medical Center):
4,905,000 10.300%, 6/01/08 (Pre-refunded to 6/01/98) 6/98 at 101 AAA 5,616,029
3,350,000 10.375%, 6/01/16 (Pre-refunded to 6/01/98) 6/98 at 101 AAA 3,896,720
5,750,000 5.375%, 6/01/23 1/04 at 102 AAA 5,019,233
UTAH - 11.9%
Intermountain Power Agency:
45,015,000 7.875%, 7/01/14 7/96 at 102 AA- 47,165,367
1,250,000 5.250%, 7/01/14 No Opt. Call AA 1,124,213
20,805,000 6.000%, 7/01/15 7/96 at 100 AA- 20,492,093
8,695,000 7.750%, 7/01/16 7/96 at 102 AA 9,047,321
22,755,000 7.750%, 7/01/17 (Pre-refunded to 7/01/96) 7/96 at 102 Aaa 23,986,728
10,000,000 5.250%, 7/01/17 7/03 at 102 AA 8,873,400
10,140,000 7.200%, 7/01/19 7/97 at 102 AA- 10,648,724
5,405,000 5.750%, 7/01/20 7/96 at 100 AA 5,057,404
10,500,000 5.500%, 7/01/20 7/03 at 102 AA 9,518,880
5,500,000 8.625%, 7/01/21 7/97 at 102 AA 5,979,160
17,250,000 7.000%, 7/01/21 (Pre-refunded to 7/01/95) 7/95 at 100 Aaa 17,333,145
10,000,000 6.000%, 7/01/21 7/95 at 100 AA 9,641,400
10,000,000 7.000%, 7/01/22 (Pre-refunded to 7/01/95) 7/95 at 100 Aaa 10,048,200
29,750,000 7.000%, 7/01/23 (Pre-refunded to 7/01/95) 7/95 at 100 Aaa 29,893,394
9,250,000 6.000%, 7/01/23 7/99 at 100 AA 8,920,607
20,000,000 5.000%, 7/01/23 7/03 at 100 AA 16,727,600
VIRGINIA - 0.4%
2,000,000 Virginia Housing Development Authority,
9.450%, 11/01/12 1/98 at 102 AA 2,191,620
6,120,000 Virginia Transportation Board, 6.000%, 5/15/19 5/98 at 102 AA 6,081,198
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON - 4.5%
Washington Public Power Supply System, Nuclear
Project No. 1:
$ 1,075,000 14.375%, 7/01/01 No Opt. Call Aaa $ 1,579,991
900,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 AAA 996,893
1,675,000 15.000%, 7/01/17 (Pre-refunded to 7/01/96) 7/96 at 103 Aaa 1,920,420
5,750,000 5.700%, 7/01/17 7/03 at 102 Aaa 5,353,134
Washington Public Power Supply System Nuclear
Project No. 2:
6,500,000 5.375%, 7/01/10 7/04 at 102 AA 5,958,940
11,390,000 5.750%, 7/01/12 7/03 at 102 AA 10,702,954
6,000,000 5.700%, 7/01/12 7/95 at 101 AA 5,648,820
Washington Public Power Supply System, Nuclear
Project No. 3:
11,510,000 5.625%, 7/01/12 7/03 at 102 AA 10,666,431
2,000,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 AAA 2,215,320
5,000,000 5.375%, 7/01/15 7/03 at 102 AA 4,377,250
8,000,000 5.600%, 7/01/17 7/03 at 102 Aaa 7,352,800
20,975,000 6.500%, 7/01/18 7/01 at 102 AA 20,985,487
Tacoma Department of Public Utilities,
Light Division:
4,830,000 9.375%, 1/01/15 (Pre-refunded to 1/01/96) 1/96 at 102 A+ 5,091,350
6,035,000 9.375%, 1/01/15 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 6,349,845
WISCONSIN - 1.5%
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 15,147,337
16,335,000 Wisconsin Public Power Supply System,
5.250%, 7/01/21 7/03 at 102 Aaa 14,480,977
WYOMING - 0.1%
1,500,000 Green River-Rock Springs, Joint Water Board,
8.500%, 12/01/07 6/98 at 101 BBB- 1,659,614
$2,021,345,485 Total Investments - (cost $1,796,085,709) - 97.7% 1,925,847,807
==============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 2,400,000 Harris County Health Facilities Development
==============
Corporation (The Methodist Hospital), Variable
Rate Demand Bonds, 5.000%, 12/01/25t A-1+ 2,400,000
Other Assets Less Liabilities - 2.2% 42,509,830
Net Assets - 100% $1,970,757,637
==============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 70 $ 816,889,162 42%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 31 311,553,098 16
PORTFOLIO OF A+ A1 7 86,706,744 5
INVESTMENTS A, A- A, A2, A3 25 313,298,411 16
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 33 311,122,259 16
TEMPORARY B+, B, B- B1, B, B2, B3 1 10,875,000 1
INVESTMENTS): Non-rated Non-rated 13 75,403,133 4
TOTAL 180 $1,925,847,807 100%
<FN>
* Optional Call Provisions: 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: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
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.
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
(Unaudited)
NUVEEN MUNICIPAL INCOME FUND, INC. (NMI)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA - 1.0%
$ 1,000,000 Pomona Public Financing Authority (Southwest
Pomona Redevelopment Project), 5.500%, 2/01/08 2/04 at 102 BBB+ $ 952,330
COLORADO - 5.0%
City and County of Denver Airport System,
Alternative Minimum Tax:
1,065,000 8.750%, 11/15/23 11/01 at 102 Baa 1,180,989
1,305,000 8.500%, 11/15/23 11/00 at 102 Baa 1,410,836
2,000,000 7.250%, 11/15/23 11/02 at 102 Baa 2,005,340
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 1,822,325
FLORIDA - 7.9%
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 1,136,420
1,015,000 Florida Housing Finance Agency (GNMA),
Alternative Minimum Tax, 8.300%, 6/01/20 12/98 at 103 Aaa 1,096,109
1,450,000 Gateway Centre Development District, Special
Assessment, 9.125%, 1/01/09 1/98 at 103 N/R 1,523,225
3,160,000 Greater Orlando Aviation Authority, Alternative
Minimum Tax, 8.375%, 10/01/16 10/98 at 102 A1 3,504,914
GEORGIA - 2.9%
2,350,000 Burke County Development Authority (Georgia
Power Company), Alternative Minimum Tax,
9.375%, 12/01/17 12/97 at 102 A3 2,615,339
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 1,247,017
575,000 9.500%, 11/15/19 11/00 at 102 BBB 665,505
1,300,000 Illinois Health Facilities Authority (Northern
Illinois Medical Center), 6.000%, 9/01/19 9/03 at 102 A- 1,160,016
2,000,000 Illinois Health Facilities Authority (Illinois Masonic
Medical Center), 5.500%, 10/01/19 10/03 at 102 A- 1,711,160
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 3,446,490
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
INDIANA - 1.9%
$ 1,750,000 Indiana Bond Bank, 6.000%, 2/01/16 2/04 at 102 A $ 1,691,410
KENTUCKY - 3.9%
1,235,000 Kenton County Airport Board (Greater Cincinnati
International Airport), Alternative Minimum
Tax, 8.250%, 3/01/15 3/98 at 102 A 1,352,115
1,985,000 Muhlenberg County Hospital (Muhlenberg
Community Hospital), 9.500%, 8/01/10 8/98 at 102 N/R 2,176,314
LOUISIANA - 1.3%
950,000 Louisiana Public Facilities Authority (Comm-Care
Corporation), 11.000%, 2/01/04 No Opt. Call BBB 1,150,213
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+ 2,088,640
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 3,243,150
400,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), Alternative Minimum
Tax, 9.250%, 7/01/15 7/01 at 103 N/R 434,164
MICHIGAN - 1.7%
1,500,000 Saginaw Hospital Finance Authority (Saginaw
General Hospital), 7.625%, 10/01/19 10/99 at 102 A- 1,564,215
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 2,608,470
NEW MEXICO - 2.9%
2,595,000 Belen Nursing Home (Belen Health Care Ltd.),
10.250%, 10/01/13 10/98 at 103 N/R 2,685,358
NEW YORK - 7.7%
3,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home,
FHA-Insured Mortgage (Catholic Medical Center),
8.300%, 2/15/22 (Pre-refunded to 2/15/98) 2/98 at 102 AAA 3,329,820
2,500,000 New York State Medical Care Facilities Finance
Agency (Brookdale Hospital Medical Center),
6.800%, 8/15/12 2/05 at 102 BBB 2,505,675
1,250,000 New York City General Obligation, 6.625%, 2/15/25 2/05 at 102 A- 1,228,313
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
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 $ 1,948,027
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 1,043,290
1,000,000 6.500%, 7/01/23 7/03 at 102 N/R 890,720
OKLAHOMA - 6.1%
1,500,000 Oklahoma County Industrial Authority (Oklahoma
Blood Institute Project), 9.000%, 7/01/03 7/95 at 102 N/R 1,541,715
3,585,000 Comanche County Hospital Authority,
8.050%, 7/01/16 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 4,070,732
OREGON - 1.1%
1,000,000 Springfield Hospital Facility Authority
(McKenzie-Willamette Hospital), 6.375%, 8/01/08 8/04 at 100 Baa 999,430
PENNSYLVANIA - 6.1%
1,000,000 Pennsylvania Convention Center Authority,
6.750%, 9/01/19 9/04 at 102 BBB- 1,005,380
2,000,000 Pennsylvania Housing Finance Agency,
6.400%, 7/01/12 7/02 at 102 Aaa 2,041,460
2,300,000 Allegheny County (Greater Pittsburgh International
Airport), Alternative Minimum Tax,
8.250%, 1/01/16 1/98 at 102 Aaa 2,529,310
RHODE ISLAND - 1.9%
1,610,000 Rhode Island Housing and Mortgage Finance
Corporation, Alternative Minimum Tax,
8.250%, 10/01/22 10/98 at 102 AA+ 1,706,245
SOUTH CAROLINA - 2.2%
1,750,000 Charleston County Resource Recovery (Foster
Wheeler), Alternative Minimum Tax,
9.250%, 1/01/10 1/98 at 103 A 1,966,177
TENNESSEE - 2.2%
2,000,000 Memphis Health Educational and Housing Facilities
Board, FHA-Insured (River Trace Apartments II),
6.450%, 4/01/26 10/04 at 102 Aaa 1,976,100
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS - 13.4%
$ 1,055,000 Alliance Airport Authority (American Airlines),
Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 $ 1,079,327
4,000,000 Brazos River Authority (Houston Lighting and
Power Company), 7.875%, 11/01/18 11/96 at 102 A 4,167,960
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 3,393,300
3,500,000 Hidalgo County Housing Finance Corporation,
Single Family Mortgage (GNMA and FNMA),
Alternative Minimum Tax, 7.000%, 10/01/27 4/04 at 102 Aaa 3,610,250
WASHINGTON - 4.4%
1,240,000 Bellingham Housing Authority (Cascade Meadows
Project), 7.100%, 11/01/23 11/04 at 100 A1 1,280,610
2,500,000 Yakima-Tieton Irrigation District, 8.400%, 6/01/18
(Pre-refunded to 6/01/98) 6/98 at 100 Baa1 2,753,300
$84,925,000 Total Investments - (cost $84,665,020) - 98.0% 89,539,205
===========
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 200,000 North Central Texas Health Facilities Development
===========
Corporation (Methodist Hospitals of Dallas),
Variable Rate Demand Bonds, 5.000%, 10/01/15t A-1 200,000
Other Assets Less Liabilities - 1.8% 1,590,719
Net Assets - 100% $91,329,924
===========
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 11 $29,263,923 33%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 1 1,706,245 2
PORTFOLIO OF A+ A1 2 4,785,524 5
INVESTMENTS A, A- A, A2, A3 9 17,456,705 20
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 14 21,652,452 24
TEMPORARY Non-rated Non-rated 9 14,674,356 16
INVESTMENTS):
TOTAL 46 $89,539,205 100%
<FN>
* Optional Call Provisions: 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: 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
(Unaudited)
<CAPTION>
NUV NMI
<S> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $1,925,847,807 $89,539,205
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 2,400,000 200,000
Cash 86,205 304,178
Receivables:
Interest 47,268,132 1,897,500
Investments sold 6,938,260 --
Other assets 871,257 17,710
-------------- -----------
Total assets 1,983,411,661 91,958,593
-------------- -----------
LIABILITIES
Accrued expenses:
Management fees (note 6) 981,705 48,904
Other 961,569 65,068
Dividends payable 10,710,750 514,697
-------------- -----------
Total liabilities 12,654,024 628,669
-------------- -----------
Net assets (note 7) $1,970,757,637 $91,329,924
============== ===========
Shares outstanding 194,740,903 7,739,803
============== ===========
Net asset value per share outstanding (net assets
divided by shares outstanding) $ 10.12 $ 11.80
============== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1995
(Unaudited)
<CAPTION>
NUV NMI
<S> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $ 69,638,238 $3,335,694
------------ ----------
Expenses:
Management fees (note 6) 5,852,121 287,862
Shareholders' servicing agent fees and expenses 401,662 19,683
Custodian's fees and expenses 107,539 21,113
Directors' fees and expenses (note 6) 4,817 753
Professional fees 31,548 8,802
Shareholders' reports--printing and mailing expenses 247,214 9,104
Stock exchange listing fees 58,585 5,316
Investor relations expense 56,676 4,232
Other expenses 63,409 3,342
------------ ----------
Total expenses 6,823,571 360,207
------------ ----------
Net investment income 62,814,667 2,975,487
------------ ----------
REALIZED AND UNREALIZED GAIN
FROM INVESTMENTS
Net realized gain from investment transactions (note 3) 1,737,771 214,732
Net change in unrealized appreciation or depreciation
of investments 54,776,554 1,858,002
------------ ----------
Net gain from investments 56,514,325 2,072,734
------------ ----------
Net increase in net assets from operations $119,328,992 $5,048,221
============ ==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NUV NMI
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 62,814,667 $ 121,943,733 $ 2,975,487 $ 5,948,601
Net realized gain from investment transactions 1,737,771 5,598,178 214,732 134,281
Net change in unrealized appreciation or depreciation
of investments 54,776,554 (154,735,638) 1,858,002 (7,067,094)
-------------- -------------- ----------- -----------
Net increase (decrease) in net assets from operations 119,328,992 (27,193,727) 5,048,221 (984,212)
-------------- -------------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income (64,227,479) (124,379,738) (3,081,552) (6,294,427)
From accumulated net realized gains from investment
transactions (5,602,067) (10,087,141) -- --
-------------- -------------- ----------- -----------
Decrease in net assets from distributions to
shareholders (69,829,546) (134,466,879) (3,081,552) (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 2,246,898 17,703,053 364,437 1,143,113
-------------- -------------- ----------- -----------
Net increase in net assets derived from capital
share transactions 2,246,898 269,379,838 364,437 1,143,113
-------------- -------------- ----------- -----------
Net increase (decrease) in net assets 51,746,344 107,719,232 2,331,106 (6,135,526)
Net assets at beginning of period 1,919,011,293 1,811,292,061 88,998,818 95,134,344
-------------- -------------- ----------- -----------
Net assets at end of period $1,970,757,637 $1,919,011,293 $91,329,924 $88,998,818
============== ============== =========== ===========
Balance of undistributed net investment income
at end of period $ 1,831,638 $ 3,244,450 $ 75,005 $ 181,070
============== ============== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At April 30, 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 April 30, 1995, there were no such purchase commitments in
either of the Funds.
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.
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.
<PAGE>
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 accumulated net realized
capital gains, if applicable.
<TABLE>
2. FUND SHARES
Transactions in shares were as follows:
<CAPTION>
NUV NMI
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 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 224,690 1,697,900 30,866 90,804
------- ---------- ------ ------
Net increase 224,690 28,145,215 30,866 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 common shares and recorded proceeds of
$251,676,785, net of $1,296,779 costs of the offering.
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments for the six months ended April
30,1995, were as follows:
<CAPTION>
NUV NMI
<S> <C> <C>
PURCHASES
Investments in municipal securities $ 90,985,738 $6,886,947
Temporary municipal investments 23,500,000 6,300,000
SALES AND MATURITIES
Investments in municipal securities 104,795,241 6,993,977
Temporary municipal investments 24,100,000 6,100,000
============ ==========
At April 30, 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, 1994, the Funds' last fiscal year end, NMI had an unused
capital loss carryover of $421,948 available for federal income tax purposes
to be applied against future capital gains, if any. If not applied, the
carryover will expire in the year 2001.
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO SHAREHOLDERS
On May 1, 1995, the Funds declared dividend distributions from their
ordinary income which were paid June 1, 1995, to shareholders of record on May
15, 1995, as follows:
<CAPTION>
NUV NMI
<S> <C> <C>
Dividend per share $.0550 $.0665
====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of
investments at April 30, 1995, were as follows:
<CAPTION>
NUV NMI
<S> <C> <C>
Gross unrealized:
Appreciation $156,084,104 $5,836,522
Depreciation (26,322,006) (962,337)
------------ ----------
Net unrealized appreciation $129,762,098 $4,874,185
============ ==========
</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%
For the next $50,000,000 4.000
For gross income over $100,000,000 3.875
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.
7. COMPOSITION OF NET ASSETS
At April 30, 1995, net assets consisted of:
<CAPTION>
NUV NMI
<S> <C> <C>
Shares, $.01 par value per share $ 1,947,409 $ 77,398
Paid-in surplus 1,835,478,721 86,510,552
Balance of undistributed net investment income 1,831,638 75,005
Accumulated net realized gain (loss) from
investment transactions 1,737,771 (207,216)
Net unrealized appreciation or depreciation
of investments 129,762,098 4,874,185
-------------- ------------
Net assets $1,970,757,637 $ 91,329,924
============== ============
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 April 30, 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:
Housing Facilities 6% 18%
Electric Utilities 18 --
Health Care Facilities 11 16
Transportation 8 13
Pollution Control Facilities 7 13
Water / Sewer Facilities 4 --
Lease Rental Facilities 1 --
Educational Facilities 1 --
Other 8 11
General Obligation Bonds 1 5
Escrowed Bonds 35 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 (46% for NUV, 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.
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 John Nuveen & Co. Incorporated, Nuveen Advisory Corp., and
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. Fund shareholders have also filed actions against the Fund's former
outside legal counsel and in-house counsel to John Nuveen & Co. Incorporated
seeking unspecified damages and alleging, among other things, negligence and
professional malpractice. The defendants have denied the allegations and are
defending the suits. 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 substantially completed its investigation. Any
conclusions the Committee reaches will remain confidential until the court
rules on certain motions now pending before it. 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 effect on the Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
selected data for a common share outstanding throughout each period is as
follows:
Operating performance
Net
realized &
Net asset unrealized Dividends
value Net gain (loss) from net Distributions
beginning investment from investment from
of period income investments income capital gains
NUV
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $ 9.870 $.323 $ .286 $(.330) $(.029)
Year ended 10/31
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>
6 mos. ended
4/30/95 11.540 .385 .274 (.399) --
Year ended 10/31,
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>
Total
Per share investment Total
Organization Net asset market return return
and value end value end on market on net asset
offering costs of period of period valuet valuet
NUV
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $ -- $10.120 $10.250 13.47% 6.31%
Year ended 10/31
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>
6 mos. ended
4/30/95 -- 11.800 11.875 13.03 5.85
Year ended 10/31,
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
net
Net assets Ratio of investment
end of expenses income Portfolio
period (in to average to average turnover
thousands) net assets net assets rate
NUV
<S> <C> <C> <C> <C>
6 mos. ended
4/30/95 $1,970,758 .71*% 6.55*% 5%
Year ended 10/31
1994 1,919,011 .70 6.31 7
1993 1,811,292 .74 6.45 8
1992 1,726,311 .77 6.75 8
1991 1,689,882 .83 6.98 7
1990 1,595,189 .86 7.10 5
1989 1,613,404 .89 7.13 7
1988 1,572,110 .94 7.12 42
6/17/87 to
10/31/87 1,445,069 .80* 4.99* --
<CAPTION>
NMI
<S> <C> <C> <C> <C>
6 mos. ended
4/30/95 91,330 .81* 6.72* 8
Year ended 10/31,
1994 88,999 .85 6.45 26
1993 95,134 .86 6.67 8
3 mos. ended
10/31/92 90,854 .90* 6.67* --
Year ended 7/31,
1992 93,216 .76 7.02 2
1991 88,384 .69 7.33 3
1990 86,359 .72 7.24 7
1989 86,535 .73 7.25 35
4/20/88 to
7/31/88 81,375 .73* 5.21* --
<FN>
* Annualized.
** Includes ($.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>
Our commitment to you
Photo of John Nuveen
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
For almost a century, John Nuveen & Co. Incorporated has concentrated its
resources and expertise in one area: municipal bonds. We are one of the oldest
and largest investment banking firms specializing exclusively in municipal
securities, and we strive to be the best.
Our approach to managing our shareholders' investments endures. We maintain
a sharp focus on the needs of prudent investors and their families, offer
investments of quality, and then work to make them better by seeking out
opportunity. We hold to a dedicated belief in the importance of research. And
we sustain a commitment to sound financial management through value investing.
Our hope is that by providing quality investments we may foster opportunity
for our investors. Through careful research, attention to detail, and our
philosophy of managing for long-term value, we strive to provide our
shareholders with the attractive level of income they need to achieve their
personal goals and aspirations.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF1-JUN 95
