SEMIANNUAL REPORT April 30, 2000
NUVEEN Investments Invest well. Look ahead. LEAVE YOUR MARK.(sm)
EXCHANGE-TRADED FUNDS
Dependable, tax-free income to help you keep more of what you earn.
MUNICIPAL VALUE
NUV
MUNICIPAL INCOME
NMI
PHOTO OF: WATER
PHOTO OF: HANDS
<PAGE>
Credit Quality Highlights
As of April 30, 2000
================================================================================
Nuveen Municipal Value Fund, Inc. (NUV)
PIE CHART:
AAA/U.S. Guaranteed 45%
AA 19%
A 14%
BBB/NR 22%
Nuveen Municipal Income Fund, Inc. (NMI)
PIE CHART:
AAA/U.S. Guaranteed 19%
AA 10%
A 8%
BBB/NR 63%
CONTENTS
1 Dear Shareholder
3 Portfolio Managers' Comments
6 NUV's Performance Overview
7 NMI's Performance Overview
8 Portfolio of Investments
19 Statement of Net Assets
20 Statement of Operations
21 Statement of Changes in Net Assets
22 Notes to Financial Statements
26 Financial Highlights
28 Build Your Wealth Automatically
29 Fund Information
<PAGE>
Photo of: TIMOTHY R. SCHWERTFEGER
CHAIRMAN OF THE BOARD
Sidebar text: "Building and sustaining wealth requires sound, ongoing advice."
Dear Shareholder
The primary objective of your Nuveen Municipal Exchange-Traded Fund is to
provide dependable, attractive tax-free dividends. I am pleased to report that
your Fund continued to achieve this goal during the period covered by this
report. I also encourage you to read the Portfolio Manager's Comments later in
this report, where your Fund's manager takes a comprehensive look at the
investment environment and performance of your Fund for this period.
As an income-oriented investment, we believe your Nuveen Exchange-Traded Fund is
well positioned to be a core element of your long-term investment program. With
the help of your financial advisor, all of us at Nuveen Investments are
dedicated to providing the services, products, perspectives and solutions you
need to help you meet your personal and family goals.
NEW WAYS TO THINK ABOUT WEALTH
In the past few years, much attention has been directed toward the ways we're
accumulating wealth. At Nuveen, we believe it is just as important for investors
also to focus on preserving that wealth, on the responsibilities wealth brings
with it, and on the legacies we will leave for future generations.
This long-term perspective is a key to understanding our portfolio management
strategies, our insistence on quality and our determination to provide
investments that can withstand the test of time. It is a philosophy that we
think is encapsulated well in our brand theme: Invest Well. Look Ahead. Leave
Your Mark.SM
INVEST WELL
Building and sustaining the wealth that can result in lasting legacies requires
a well-developed plan, sound on-going advice, and the discipline to stay focused
on long-term results. With today's abun dance of investment products and offers,
it also increasingly requires an experienced and trusted advisor who can guide
you through the opportunities and the pitfalls. With so much potentially at
stake, Nuveen Investments is dedicated to delivering quality products like your
Nuveen Fund through the financial advisors who assist you in making wise
investment choices and help you manage your most impor tant financial assets.
<PAGE>
LOOK AHEAD
We urge all our investors to look ahead, not only to their own goals and
futures, but toward those of future generations as well. We now stand on the
threshold of a new century, anticipating a time of change, discovery and
potential that may one day make the year 2000 seem as archaic as the year 1900.
We don't know all that the future will bring, but we do know that a
well-diversified, carefully-monitored investment program that combines elements
of growth, income and capital preservation will form a solid foundation that can
help meet whatever opportunities and challenges the new century has to offer.
LEAVE YOUR MARK
With the enormous wealth creation of the last decade and the considerable
intergenerational transfer of wealth that is expected to occur over the next 20
years, investors today have a significant opportunity to shape their own and
their family's financial future. These may include establishing trusts,
endowments or legacies that can directly affect our families and communities for
generations to come. We at Nuveen Investments are committed to facilitating and
raising the level of dialogue between investors and their financial advisors in
ways that can help meet goals that extend far beyond the boundaries of a single
lifespan.
Since 1898, the name Nuveen has been synonymous with quality investments,
careful research and prudent management. Today, more than ever, the investments
and services we offer through financial advisors may be well suited to those who
recognize and embrace the need for building and managing wealth. We encourage
you to speak with your financial advisor about how you can enhance your
investment program in ways that help you Look Ahead, Invest Well and Leave Your
Mark.
Sincerely,
/S/ TIMOTHY R. SCHWERTFEGER
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
June 15, 2000
Sidebar text: "We believe your Nuveen Exchange-Traded Fund is well positioned to
be a core element of your long-term investment program."
<PAGE>
Nuveen National Exchange-Traded Funds (NUV, NMI)
Portfolio Manager's Comments
PORTFOLIO MANAGERS TOM SPALDING AND STEVE PETERSON REVIEW THE NATIONAL ECONOMY,
ITS IMPACT ON THE MUNICIPAL MARKET AND FUND PERFORMANCE, AND THE KEY STRATEGIES
USED TO MANAGE THE NUVEEN MUNICIPAL VALUE FUND, INC. (NUV) AND THE NUVEEN
MUNICIPAL INCOME FUND, INC. (NMI). TOM, WHO HAS 24 YEARS OF EXPERIENCE AS AN
INVESTMENT PROFESSIONAL AT NUVEEN, HAS MANAGED NUV SINCE ITS INCEPTION IN 1987,
WHILE STEVE, A 12-YEAR VETERAN OF NUVEEN, ASSUMED PORTFOLIO MANAGEMENT
RESPONSIBILITY FOR NMI IN 1998.
WOULD YOU COMMENT BRIEFLY ON THE GENERAL ECONOMIC ENVIRONMENT?
In April 2000, the United States entered its tenth year of uninterrupted
economic expansion, the longest continuous expansion in the nation's history.
While the strong growth trends and relatively benign inflation that have been
the hallmarks of this expansion remained largely in place, unabated consumer
spending and tight labor markets have kept the Federal Reserve concerned that
the pace of growth would eventually trigger a resurgence of inflation.
The shift in financial market sentiment to worries about runaway growth and
inflationary pressures is a marked contrast from the concerns about slower
growth and deflation that followed the global financial crisis of 1998. The
primary catalysts behind this change in sentiment - in addition to consumer
spending and the scarcity of qualified workers - included the quick recovery of
the global economy following the 1998 events, rising commodity prices, and the
accelerating effect of excess cash created to ensure liquidity during the
transition into the year 2000.
All of this prompted the Federal Reserve to embark on a tightening path. In June
1999 the Fed began a series of five short-term interest rate increases that
eventually raised the federal funds rate 1.25% to 6.0%. (In May, the Fed raised
rates a sixth time, bringing the fed funds rate to 6.5%.) As the Fed acted and
then continued to leave the door open for additional tightenings, investor
uncertainty grew, the equity markets became increasingly volatile, and bond
prices declined as yields pushed higher. The shift in the economic landscape has
been complicated by the rapidly shrinking supply of long-term Treasuries, as the
U.S. government accelerated its program to buy back Treasury debt. This has
created some severe disloca tions within and between Treasuries and other bond
markets. Following the Fed's rate hikes, the Treasury yield curve remained
inverted, with the yield on a two-year notes about 60 basis points higher than
that of a 30-year bond.
The Fed's actions to rein in the monetary base, plus the shift in policy from
global monetary stimulus to restraint, has provided a foundation that may help
to counterbalance some of the current pressures in the economy. Investors
continue to hope that the Fed's moves will not jeopardize the expansion by doing
too little or too much, but instead successfully engineer a soft landing for the
U.S. economy.
HOW HAVE THESE EVENTS AFFECTED THE MUNICIPAL MARKET?
The cumulative effects of the economic events of the past 12 months were
negative for the fixed-income markets generally, including municipal bonds. Once
the Fed began its series of interest rate hikes, the rise in municipal yields
accelerated. Over the 12 months ending April 2000, long-term municipal yields
rose about 80 basis points, compared with a 30-point gain in 30-year Treasury
yields. Concurrent with the rise in yields, municipal bond prices slumped. As a
result, by the end of April 2000, long-term municipal yields were about 102% of
30-year Treasury yields, compared with the historical average of 86% for the
period 1986-1999.
During the first four months of 2000, new municipal issuance declined more than
26% from the level of the first four months of 1999. This continued the trend
begun last year, as the rising interest rate environment deterred municipalities
from issuing new bonds or refinancing old debt. In addition, robust tax revenue
collections have enabled many state and local govern ments to use more
pay-as-you-go financings rather than bond issuance to fund projects. Overall,
the decline in supply helped to offset some of the negative impact that higher
interest rates and equity market activity had on the demand for municipal bonds
and, ultimately, on bond prices.
<PAGE>
According to the most recent data released by the Federal Reserve Board, demand
for municipal bonds on the part of individual investors continued to grow in
1999, maintaining a trend seen over the past four years. While total U.S.
municipal debt grew by 5% in 1999, holdings by individual investors went up by
11%. As of January 2000, individual investors held directly about 34% of the
outstanding municipal debt in the U.S. This provided some support for a
municipal market experiencing a decline in demand from institutional investors.
Reduced buying by mutual and money market funds, which together accounted for
29% of municipal debt holdings, reflected the lower demand for bond funds.
Property and casualty insurance companies, the fourth largest group of municipal
bond holders with 14%, generally had less cash to spend on munici pals due to
claims from natural disasters and pricing competition - although we have seen a
modest pick up in buying from this group in recent weeks.
The economic prosperity of the past decade has benefited all sectors of the
municipal bond market, resulting in upgrades in debt ratings. In 1999, upgrades
by Standard & Poor's outnumbered downgrades by a ratio of almost 4 to 1. In
fact, the fourth quarter of 1999 marked the 17th consecutive quarter in which
upgrades exceeded downgrades. The tax-backed sector, which includes general
obligation bonds issued by states, local municipalities, and school and special
purpose districts, fared particularly well in 1999, with upgrades outnumbering
downgrades 30 to 1.
WERE NUV'S AND NMI'S DIVIDENDS AFFECTED BY THIS RISING RATE ENVIRONMENT?
Over the past year, good call protection within both Funds' portfolios helped to
support the dividends. As of the end of April 2000, NUV had provided
shareholders with stable dividends for 18 consecutive months, while NMI had
offered 22 consecutive months of steady or increasing dividends.
However, bonds in both portfolios that were issued in the late 1980s and early
1990s continued to reach their call dates. As these bonds get called, the
proceeds usually must be reinvested in bonds with smaller coupons, which over
time may affect the income gener ated by the Funds and the level of the Funds'
dividends.
OVERALL, HOW DID THESE FUNDS PERFORM OVER THE PAST YEAR?
For the 12 months ended April 30, 2000, NUV and NMI provided total returns on
net asset value (NAV) as shown in the accompanying table. For comparison
purposes, the annual returns for the Lehman Brothers Municipal Bond Index1 and
Lipper Peer Group2 are also presented.
LEHMAN
TOTAL LIPPER
MARKET YIELD TOTAL RETURN ON NAV RETURN1 AVERAGE2
--------------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED TAXABLE- ENDED ENDED
4/30/00 EQUIVALENT3 4/30/00 EQUIVALENT3 4/30/00 4/30/00
--------------------------------------------------------------------------------
NUV 6.23% 9.03% -1.90% 0.41% -0.92% -1.63%
--------------------------------------------------------------------------------
NMI 6.42% 9.30% 0.33% 3.01% -0.92% -1.63%
--------------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for each
Fund later in this report.
The relative underperformance of NUV's total returns on NAV when compared with
the Lehman Index can be attributed largely to its duration, which is a measure
of the Fund's NAV volatility in reaction to interest rate movements. Fund
durations often are lengthened when we look to add call protection to the
portfolios. As a result, as of April 30, 2000, the durations of NUV and NMI were
8.77 and 7.63, respectively, compared with the Lehman Brothers Municipal Bond
Index's 7.42.
During a period of falling interest rates, a longer duration can enhance the
ability of a fund's NAV to participate in market gains. However, when interest
rates rise (and bond values correspondingly fall), a longer duration can make
the fund's NAV more vulner able to price declines. Over the 12 months ended
April 2000, the yield on the Bond Buyer 25 Revenue Bond Index4 rose from 5.29%
to 6.07%. In this environment, NUV's longer duration contributed to its relative
under performance. NMI's total return was not as affected because its duration
was shorter, and its relatively high allocation of BBB/non-rated bonds (63% of
the portfolio) generally provided more income, which helped to offset bond price
weakness.
We continue to believe that the Funds' longer durations should help to
strengthen the relative stability of their common share dividends over the
long-term, and should position the Funds to potentially outperform as the market
might begin to recover and interest rates decline.
WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE?
The uncertain economic environment, coupled with an investor focus on equity
market performance, has tended to dampen interest in most fixed-income
1 The Funds' performance is com pared with that of the Lehman Brothers
Municipal Bond Index, an unleveraged index compris ing a broad range of
invest ment-grade municipal bonds. Results for the Lehman index do not
reflect any expenses.
2 The Funds' total returns are compared with the average annualized return of
the 17 funds in the Lipper General and Insured Unleveraged Municipal Debt
Funds category. Fund and Lipper returns assume reinvest ment of dividends.
3 The taxable-equivalent yield/ total return represents the yield/total
return that must be earned on a taxable investment in order to equal the
yield/total return of the Nuveen Fund on an after-tax basis. The
taxable-equivalent yield is based on the Fund's current market yield and a
federal income tax rate of 31%, while the taxable-equivalent total return
is based on the annualized total return and the 31% federal income tax
rate.
4 The Bond Buyer 25 Revenue Bond Index is an unmanaged index of long-term
municipal revenue bonds.
<PAGE>
products. This lack of demand has put pressure on the prices of many municipal
bond investments, including these two Funds.
As shown in the charts on the Performance Overview pages, the share prices for
the Funds have gradually declined over much of the past year. These price
declines generally were larger than the declines in the Funds' NAVs. As a
result, over the past year NUV has seen its discount (share price below NAV)
widen, while NMI's slight premium (share price above NAV) has moved to a
discount. With the market prices of all these Funds now lower than the actual
value of the bonds in their portfolios, shareholders may want to consider taking
advantage of this opportunity to add to their holdings of these Funds.
WHAT KEY STRATEGIES WERE USED TO MANAGE NUV AND NMI DURING THE 12 MONTHS ENDED
APRIL 30, 2000?
The past 12 months represented a challenging period for all fixed-income
investments. However, the period also provided opportunities to improve the
Funds' structures, provide additional diversification, strengthen the Funds'
long-term dividend-paying capabilities, and enhance tax efficiency by offsetting
potential capital gains with capital losses.
To improve the Funds' structures, we have been selling bonds in demand by
individual investors at attractive prices, including prerefunded bonds and bonds
with short call dates, and buying issues that offer higher yields, longer
maturities, and extended call protection.
Both NUV and NMI currently offer relatively good call protection, with only
about 8% of their portfolios subject to bond calls over the remainder of 2000
and another 9% in 2001. Among the bonds scheduled to be called from NUV toward
the end of 2000 are airport revenue bonds issued by the city and county of
Denver. NUV has benefited significantly from these holdings, as the bonds have
provided above-market returns and have been upgraded since our purchase. In NMI,
we have also been watching for pricing inefficiencies and trading bonds with
special call features when it benefited the Fund. The call protection now in the
portfolios of both Funds should help provide relative dividend stability over
time.
The largest allocation in both Funds - 28% in NUV and 21% in NMI - are in
utility bonds, which have performed well. In February, bonds issued by the
Intermountain Power Agency in Utah were called from NUV's portfolio. We took
advantage of this opportunity to reinvest the proceeds in the higher-yielding
bonds currently available in the market. NUV also has 14% of its portfolio
invested in healthcare, which we believe presents opportunities for informed
investors who understand the dynamics and risks associated with this sector.
Regionally, NUV holds a total of almost 30% of its port folio in bonds issued by
Washington state, Colorado and California, and another 9% in New York bonds. The
Fund also has allocated over 10% of its portfolio to Illinois bonds, a number of
which have been upgraded, thereby benefiting the Fund's credit quality. Our
large holding of Illinois bonds reflects the continued strength of the Midwest
economy.
As of April 30, 2000, NUV had 64% of its portfolio invested in bonds rated
AAA/U.S. guaranteed and AA, balanced by an allocation of 22% in BBB/non-rated
bonds. As mentioned earlier, NMI's allocation of BBB/non-rated bonds was
considerably higher (63%), with 29% of its portfolio invested in AAA/U.S. guaran
teed and AA bonds. Over the past 12 months, lower quality bonds generally
provided higher yields as credit spreads (or the difference in yield between
higher credit quality securities and those of lower credit quality) widened.
WHAT IS YOUR OUTLOOK FOR NUV AND NMI?
In the months ahead, we plan to focus on the same strategies that we have
emphasized over the past year, including portfolio diversification, call
protection, and enhancing the prospects for relative dividend stability. The
lighter supply of municipal bonds currently available may make these
opportunities more difficult to find, but we believe Nuveen's experienced
Research team provides an advantage by helping us identify attractive deals and
supplying the background we need to under stand issuers.
While we will continue to look for opportunities, we anticipate making
relatively few changes over the next six months. We expect the market will
continue working its way through a period of uncertainty that may last beyond
the fall elections. We believe the Funds continue to be well positioned to
provide attractive income and a measure of portfolio diversification that can be
a valu able benefit to investors now and in the future.
<PAGE>
Nuveen Municipal Value Fund, Inc.
Performance Overview
As of April 30, 2000
NUV
PORTFOLIO STATISTICS
Inception Date 6/87
--------------------------------------------------
Share Price $8 3/16
--------------------------------------------------
Net Asset Value $9.48
--------------------------------------------------
Market Yield 6.23%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.03%
--------------------------------------------------
Fund Net Assets ($000) $1,848,308
--------------------------------------------------
Average Effective Maturity (Years) 18.82
--------------------------------------------------
Average Duration 8.77
--------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -10.28% -1.90%
--------------------------------------------------
5-Year 2.28% 5.18%
--------------------------------------------------
10-Year 4.75% 6.46%
--------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -7.85% 0.41%
--------------------------------------------------
5-Year 4.97% 7.75%
--------------------------------------------------
10-Year 7.60% 9.30%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
Utilities 28%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Transportation 13%
--------------------------------------------------
U.S. Guaranteed 11%
--------------------------------------------------
Tax Obligation/Limited 11%
--------------------------------------------------
Bar Chart:
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE3
5/99 0.0425
6/99 0.0425
7/99 0.0425
8/99 0.0425
9/99 0.0425
10/99 0.0425
11/99 0.0425
12/99 0.0425
1/00 0.0425
2/00 0.0425
3/00 0.0425
4/00 0.0425
Line Chart:
SHARE PRICE PERFORMANCE
5/7/99 9.69
9.5
9.38
9.38
9.25
9.19
9.19
9.19
9.19
9.13
9.19
9.13
9.06
9.06
8.81
8.69
8.69
8.63
8.44
8.56
8.38
8.38
8.19
8.31
8.63
8.5
8.25
8.25
8.19
8.13
7.94
7.94
7.88
8.06
7.75
7.88
8.06
8.19
8.06
8.13
8.13
8.13
8.13
8.13
8.19
8.44
8.44
8.13
8
4/28/00 8.19
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 Taxable-equivalent total return is based on the annualized total return and
a federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen Fund on an after-tax
basis.
3 The Fund also paid shareholders a net ordinary income distribution in
December 1999 of $0.0006 per share.
<PAGE>
Nuveen Municipal Income Fund, Inc.
Performance Overview
As of April 30, 2000
NMI
PORTFOLIO STATISTICS
Inception Date 4/88
--------------------------------------------------
Share Price $10 15/16
--------------------------------------------------
Net Asset Value $11.25
--------------------------------------------------
Market Yield 6.42%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.30%
--------------------------------------------------
Fund Net Assets ($000) $89,841
--------------------------------------------------
Average Effective Maturity (Years) 18.04
--------------------------------------------------
Average Duration 7.63
--------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -2.56% 0.33%
--------------------------------------------------
5-Year 4.98% 5.72%
--------------------------------------------------
10-Year 5.97% 6.79%
--------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 0.11% 3.01%
--------------------------------------------------
5-Year 7.82% 8.57%
--------------------------------------------------
10-Year 8.93% 9.84%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
Utilities 21%
--------------------------------------------------
Tax Obligation/General 11%
--------------------------------------------------
U.S. Guaranteed 10%
--------------------------------------------------
Basic Materials 10%
--------------------------------------------------
Long-TermCare 9%
--------------------------------------------------
Bar Chart:
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE3
5/99 0.0575
6/99 0.0575
7/99 0.0575
8/99 0.0575
9/99 0.0575
10/99 0.0575
11/99 0.0575
12/99 0.0575
1/00 0.0575
2/00 0.0575
3/00 0.0585
4/00 0.0585
Line Chart:
SHARE PRICE PERFORMANCE
5/7/99 11.94
12.06
11.94
12
12
11.5
11.75
11.75
12
12.19
11.88
11.75
11.81
11.75
11.44
11.75
11.81
11.94
11.75
11.31
11.19
11.25
10.63
10.75
11
11.25
11.13
10.88
10.56
10.06
10.06
10.25
10.5
10.81
10.81
11
11.13
11.13
10.94
11.06
11.19
11.25
11.19
10.88
10.81
11.38
11.25
11.13
11.06
4/28/00 10.94
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 Taxable-equivalent total return is based on the annualized total return and
a federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen Fund on an after-tax
basis.
3 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 1999 of $0.0583 per share.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN MUNICIPAL VALUE FUND, INC. (NUV)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 2.0%
$ 3,415 Alabama Housing Finance Authority, Single Family Mortgage 4/08 at 102 Aaa $ 3,089,687
Revenue Bonds (Collateralized Home Mortgage Revenue Bond
Program), 1998 Series A-2, 5.450%, 10/01/28
(Alternative Minimum Tax)
5,000 The Industrial Development Board of the Town of Courtland 11/09 at 101 Baa1 4,974,500
(Alabama), Solid Waste Disposal Revenue Bonds (Champion
International Corporation Project), Series 1999A, 6.700%, 11/01/29
(Alternative Minimum Tax)
4,000 The Medical Clinic Board of the City of Jasper (Alabama), 7/02 at 102 A3 3,862,040
Hospital Revenue Bonds, Series 1993 (Walker Regional
Medical Center, Inc. Project), 6.375%, 7/01/18
12,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101 AAA 10,761,240
Improvement Warrants, Series 1999-A, 5.375%, 2/01/36
16,850 BMC Special Care Facilities Financing Authority of the City 11/08 at 101 AAA 14,214,829
of Montgomery (Alabama), Revenue Bonds, Series 1998-B
(Baptist Health), 5.000%, 11/15/29
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.4%
4,900 Arizona Health Facilities Authority, Hospital Revenue Bonds 11/09 at 100 A2 4,761,722
(Phoenix Children's Hospital), Series 1999A, 6.250%, 11/15/29
16,000 Arizona Health Facilities Authority, Revenue Bonds (Catholic 7/10 at 101 BBB+ 15,598,880
Healthcare West), 1999 Series A, 6.625%, 7/01/20
5,270 Yuma Regional Medical Center on behalf of Hospital District 8/02 at 101 1/2 N/R*** 5,691,969
No. 1 of Yuma County, Arizona, Hospital Revenue Improvement
and Refunding Bonds (Yuma Regional Medical Center Project),
Series 1992, 8.000%, 8/01/17 (Pre-refunded to 8/01/02)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.2%
1,900 City of Conway, Arkansas, Sales and Use Tax Capital Improvement 12/06 at 101 AAA 1,819,117
Bonds, Series 1997A, 5.350%, 12/01/17
2,750 Jefferson County, Arkansas, Pollution Control Revenue Refunding 12/02 at 102 BBB- 2,401,933
Bonds (Energy Arkansas, Inc. Project), Series 1997,
5.600%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.6%
California Educational Facilities Authority, Revenue Bonds (Loyola
Marymount University), Series 1999:
3,655 0.000%, 10/01/23 10/09 at 41 33/40 Aaa 836,666
7,310 0.000%, 10/01/24 10/09 at 39 3/16 Aaa 1,566,314
1,620 State of California, Veterans General Obligation Bonds, 12/08 at 101 AAA 1,613,650
Series BH, 5.200%, 12/01/11 (Alternative Minimum Tax)
9,000 State of California, Department of Water Resources, Central 6/03 at 101 1/2 AA 9,022,770
Valley Project, Water System Revenue Bonds, Series L,
5.750%, 12/01/19
16,500 State of California, Department of Water Resources, Central 12/03 at 101 AA 13,781,625
Valley Project, Water System Revenue Bonds, Series M,
4.750%, 12/01/24
17,155 State Public Works Board of the State of California, Lease 6/03 at 102 Aa3 16,522,324
Revenue Refunding Bonds (The Regents of the University of
California), 1993 Series A (Various University of California
Projects), 5.500%, 6/01/21
10,500 California Statewide Communities Development Authority, 4/09 at 101 BBB 9,065,385
Certificates of Participation, The Internext Group,
5.375%, 4/01/17
2,500 California Statewide Communities Development Authority, 4/03 at 102 N/R*** 2,628,925
Certificates of Participation, Series A, Pacific Homes,
6.000%, 4/01/17 (Pre-refunded to 4/01/03)
6,530 California Statewide Communities Development Authority, 7/03 at 102 AA 6,283,884
Certificates of Participation, St. Joseph Health System
Obligated Group, 5.500%, 7/01/14
3,000 Community Facilities District No. 98-2 of the Capistrano 9/09 at 102 N/R 2,589,750
Unified School District (Ladera), California, Series 1999,
Special Tax Bonds, 5.750%, 9/01/29
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA (continued)
$ 5,375 Central Joint Powers Health Financing Authority, Certificates 2/03 at 100 Baa1 $ 4,124,453
of Participation, Series 1993 (Community Hospital of
Central California), 5.000%, 2/01/23
Foothill/Eastern Transportation Corridor Agency (California),
Toll Road Revenue Bonds, Series 1995A:
30,000 0.000%, 1/01/22 No Opt. Call AAA 8,303,400
10,000 6.000%, 1/01/34 (Pre-refunded to 1/01/07) 1/07 at 100 AAA 10,657,100
30,470 Los Angeles County Public Works Financing Authority, 12/03 at 102 AAA 28,287,129
Lease Revenue Bonds (Multiple Capital Facilities Project IV),
4.750%, 12/01/13
6,300 County of San Diego, California, Certificates of Participation, 9/09 at 101 Baa3 6,082,146
The Burnham Institute, 6.250%, 9/01/29
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 11.0%
12,515 Colorado Health Facilities Authority, Revenue Bonds, Series 1994 5/04 at 102 AA- 11,503,913
(Sisters of Charity Health Care Systems, Inc.), 5.250%, 5/15/14
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
3,680 7.000%, 11/15/03 (Alternative Minimum Tax) 11/02 at 102 A 3,859,179
2,125 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 2,282,038
8,290 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 8,737,080
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C:
655 6.750%, 11/15/13 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 695,649
5,045 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 A 5,127,385
7,515 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 7,981,381
29,870 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 A 30,042,051
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1990A:
790 8.250%, 11/15/12 (Alternative Minimum Tax) (Pre-refunded to 11/15/00) 11/00 at 102 Aaa 821,695
8,360 8.250%, 11/15/12 (Alternative Minimum Tax) 11/00 at 102 A 8,650,343
2,705 8.500%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/00) 11/00 at 102 Aaa 2,816,879
29,090 8.500%, 11/15/23 (Alternative Minimum Tax) 11/00 at 102 A 30,138,985
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A:
3,475 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 3,744,556
9,635 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 A 10,264,358
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D:
1,820 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,935,042
6,930 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 7,295,488
10,275 7.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 10,622,706
39,745 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 39,944,520
15,000 E-470 Public Highway Authority (Colorado), Senior Revenue Bonds, 9/10 at 102 AAA 14,446,800
Series 2000A, 5.750%, 9/01/35 (WI)
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.4%
7,460 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AA 7,506,625
Program Bonds, 1996 Series D, Subseries D-2, 6.200%, 11/15/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.4%
8,000 Washington Convention Center Authority (Washington, D.C.), 10/08 at 100 AAA 6,511,360
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
4.750%, 10/01/28
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.7%
5,000 Orange County Health Facilities Authority, Hospital Revenue 10/09 at 101 A2 4,725,100
Bonds (Orlando Regional Healthcare System), Series 1999E,
6.000%, 10/01/26
5,000 Orlando Utilities Commission, Water and Electric Subordinated 10/02 at 100 Aa2 4,730,200
Revenue Bonds, Series 1992A, 5.500%, 10/01/27
7,000 Orlando Utilities Commission, Water and Electric Subordinated 10/03 at 102 Aa2 6,372,380
Revenue Refunding Bonds, Series 1993A, 5.250%, 10/01/23
Orlando Utilities Commission, Water and Electric Subordinated
Revenue Bonds, Series 1993B:
7,000 5.600%, 10/06/17 10/03 at 102 Aa2 6,900,180
7,000 5.250%, 10/01/23 10/03 at 101 Aa2 6,307,210
2,500 Orlando Utilities Commission, Water and Electric Revenue 10/02 at 101 Aa1 2,276,275
Bonds, Series 1993, 5.125%, 10/01/19
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN MUNICIPAL VALUE FUND, INC. (NUV) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GEORGIA - 2.6%
$ 22,850 City of Atlanta (Georgia), Water and Wastewater Revenue Bonds, 5/09 at 101 AAA $ 19,180,747
Series 1999A, 5.000%, 11/01/38
Coffee County Hospital Authority (Georgia), Revenue Anticipation
Certificates (Coffee Regional Medical Center, Inc. Project),
Series 1997A:
2,800 6.250%, 12/01/06 No Opt. Call N/R 2,715,580
21,100 6.750%, 12/01/26 12/06 at 102 N/R 19,062,795
6,000 George L. Smith II World Congress Center Authority, Refunding 7/10 at 101 AAA 5,667,900
Revenue Bonds (Domed Stadium Project), Series 2000,
5.500%, 7/01/20 (Alternative Minimum Tax)
2,250 Hospital Authority of the City of Royston (Georgia), Revenue 7/09 at 102 N/R 2,012,828
Anticipation Certificates (Ty Cobb Healthcare System, Inc. Project),
Series 1999, 6.500%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.2%
5,000 City of Chicago, General Obligation Bonds, Project 1/02 at 102 AAA 5,191,250
Series A of 1992, 6.250%, 1/01/12 (Pre-refunded to 1/01/02)
City of Chicago, General Obligation Bonds, Project and Refunding
Series 1998:
10,700 5.250%, 1/01/20 7/08 at 102 AAA 9,785,257
5,700 5.250%, 1/01/28 7/08 at 102 AAA 5,066,217
2,000 Chicago School Reform Board of Trustees of the Board of 12/07 at 102 AAA 1,807,640
Education of the City of Chicago, Illinois, Unlimited Tax General
Obligation Bonds (Dedicated Tax Revenues), Series 1997A,
5.250%, 12/01/22
Chicago School Reform Board of Trustees of the Board of
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues), Series 1998A:
15,000 0.000%, 12/01/24 No Opt. Call AAA 3,302,250
47,500 0.000%, 12/01/28 No Opt. Call AAA 8,109,675
1,125 Metropolitan Water Reclamation District of Greater Chicago, No Opt. Call Aa1 1,278,788
General Obligation Capital Improvement Bonds, Series
of June, 1991, 7.000%, 1/01/11
9,050 City of Chicago, Illinois, Tax Increment Allocation Bonds 1/01 at 102 N/R*** 9,377,791
(Stockyards Industrial-Commercial Redevelopment Project),
Series 1991, 9.000%, 1/01/11 (Pre-refunded to 1/01/01)
5,430 Illinois Development Finance Authority, Industrial Development 6/02 at 102 N/R 5,515,468
Revenue Bonds, Series 1992 (Plano Molding Company Project),
7.750%, 6/01/12 (Alternative Minimum Tax)
3,000 Illinois Development Finance Authority, Pollution Control No Opt. Call BBB+ 2,886,210
Revenue Refunding Bonds, Series 1994 (Commonwealth
Edison Company Project), 5.850%, 1/15/14
Illinois Development Finance Authority (The Presbyterian Home
Lake Forest Place Project), Fixed Rate Revenue Bonds, Series
1996B:
6,495 6.400%, 9/01/31 (Pre-refunded to 9/01/06) 9/06 at 102 A-1*** 7,024,862
990 6.400%, 9/01/31 9/06 at 102 A-1 1,011,424
1,800 Illinois Development Finance Authority, Local Government Program No Opt. Call Aaa 588,456
Revenue Bonds, Series 2000 (Rockford School District
Number 205 Project), 0.000%, 2/01/19
14,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 10/03 at 102 A- 12,046,160
Series 1993 (Illinois Masonic Medical Center), 5.500%, 10/01/19
7,000 Illinois Health Facilities Authority, Revenue Bonds, 11/03 at 102 AAA 6,325,480
Series 1993 (Swedish American Hospital), 5.375%, 11/15/23
18,015 Illinois Health Facilities Authority, Revenue Bonds, Series 1993 11/03 at 102 AAA 16,224,669
(Rush-Presbyterian - St. Luke's Medical Center Obligated Group),
5.250%, 11/15/20
Illinois Health Facilities Authority, Revenue and Revenue
Refunding Bonds, Series 1990C (Hinsdale Hospital) :
8,735 9.500%, 11/15/19 (Pre-refunded to 11/15/00) 11/00 at 102 AAA 9,140,828
1,165 9.500%, 11/15/19 11/00 at 102 AAA 1,220,967
1,150 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 2/02 at 102 A*** 1,211,928
(South Suburban Hospital), 7.000%, 2/15/18 (Pre-refunded to 2/15/02)
4,350 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 No Opt. Call A*** 4,894,533
(South Suburban Hospital), 7.000%, 2/15/18
8,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1997 8/07 at 101 AAA 7,022,720
(Sherman Health Systems), 5.250%, 8/01/22
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 31,415 State of Illinois, Build Illinois Bonds, Sales Tax Revenue 6/02 at 101 AAA $ 30,175,678
Refunding Bonds, Series Q, 5.500%, 6/15/20
18,955 Metropolitan Pier and Exposition Authority (Illinois), No Opt. Call AAA 6,919,523
McCormick Place Expansion Project Bonds, Series 1992A,
0.000%, 6/15/17
9,900 Metropolitan Pier and Exposition Authority (Illinois), No Opt. Call AAA 1,671,714
McCormick Place Expansion Project Bonds, Series 1994B,
0.000%, 6/15/29
16,550 Metropolitan Pier and Exposition Authority (Illinois), No Opt. Call AAA 4,502,097
McCormick Place Expansion Project Refunding Bonds,
Series 1996A, 0.000%, 12/15/21
12,525 Metropolitan Pier and Exposition Authority (Illinois), Dedicated 6/07 at 101 AAA 12,005,463
State Tax Revenue Bonds, Series 1997, 5.125%, 6/01/13
11,650 Regional Transportation Authority, Cook, DuPage, Kane, Lake, 6/04 at 102 AAA 12,379,290
McHenry and Will Counties (Illinois), General Obligation Bonds,
Series 1994A, 6.250%, 6/01/24
1,830 Tri-City Regional Port District (Illinois), Port and Terminal No Opt. Call N/R 1,762,638
Facilities Revenue Bonds (1998 Refunding and Dock #2 Enhancement
Project), Series 1998B, 5.875%, 7/01/08 (Alternative Minimum Tax)
2,295 School District Number 161, Will County, Illinois, Capital No Opt. Call Aaa 804,443
Appreciation School Bonds, Series 1999, 0.000%, 1/01/18
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.5%
10,000 Indiana Health Facility Financing Authority, Hospital Revenue 11/07 at 102 AAA 8,954,800
Bonds, Series 1997A (Sisters of St. Francis Health Services, Inc.
Project), 5.375%, 11/01/27
17,105 Indiana Health Facility Financing Authority, Hospital Revenue 2/07 at 102 AA 16,677,033
Bonds (Clarian Health Partners, Inc.), Series 1996A,
6.000%, 2/15/21
4,840 Indianapolis Airport Authority, Special Facilities Revenue Bonds, 7/04 at 102 BBB 5,010,804
Series 1994 (Federal Express Corporation Project),
7.100%, 1/15/17 (Alternative Minimum Tax)
The Indianapolis Local Public Improvement Bond Bank, Series 1999E:
12,500 0.000%, 2/01/21 No Opt. Call AAA 3,519,250
10,000 0.000%, 2/01/27 No Opt. Call AAA 1,921,200
9,155 City of South Bend, Indiana, Multifamily Housing Revenue 5/00 at 102 N/R 8,433,861
Refunding Bonds (The Pointe at St. Joseph Project),
Issue of 1994, Series A, 6.200%, 12/15/18
500 City of South Bend, Indiana, Multifamily Housing Revenue Refunding 5/00 at 102 N/R 471,070
Bonds (The Pointe at St. Joseph Project), Issue of 1994,
Series B, 6.450%, 12/15/18 (Alternative Minimum Tax)
3,169 City of South Bend, Indiana, Multifamily Housing Revenue 12/03 at 100 N/R 1,916,605
Refunding Bonds (The Pointe at St. Joseph Project),
Issue of 1994, Series C, 3.850%, 12/15/18
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.3%
21,710 Iowa Housing Finance Authority, Single Family Housing No Opt. Call AAA 3,569,775
Bonds, 1984 Issue A, 0.000%, 9/01/16
3,380 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102 AAA 2,897,843
Series 1998A (Iowa Health System), 5.125%, 1/01/28
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.4%
6,650 City of Newton, Kansas, Hospital Revenue Bonds (Newton 11/04 at 102 N/R*** 7,412,423
Healthcare Corporation), Series 1994A, 7.750%, 11/15/24
(Pre-refunded to 11/15/04)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.2%
12,500 County of Carroll, Kentucky, Collateralized Pollution Control 9/02 at 102 A1 13,274,250
Revenue Bonds (Kentucky Utilities Company Project),
1992 Series A, 7.450%, 9/15/16
9,000 Greater Kentucky Housing Assistance Corporation, Mortgage 1/03 at 100 AAA 8,899,110
Revenue Refunding Bonds, Series 1997A (FHA-Insured
Mortgage Loans - Section 8 Assisted Projects), 6.100%, 1/01/24
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.2%
19,475 Louisiana Public Facilities Authority, Hospital Revenue Refunding 5/00 at 100 AAA 22,197,410
Bonds (Southern Baptist Hospitals, Inc. Project), Series 1986,
8.000%, 5/15/12
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.9%
14,365 Maine State Housing Authority, Mortgage Purchase Bonds, 2/04 at 102 AA 14,050,694
1994 Series A, 5.550%, 11/15/14
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN MUNICIPAL VALUE FUND, INC. (NUV) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MAINE (continued)
$ 20,815 Maine State Housing Authority, Mortgage Purchase Bonds, 5/05 at 102 AA $ 21,046,879
1995 Series A-2, 6.650%, 11/15/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.6%
10,900 Community Development Administration of Maryland, 3/07 at 101 1/2 Aa2 10,570,929
Department of Housing and Community Development,
Residential Revenue Bonds, Series 1997B, 5.875%, 9/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.1%
1,225 Massachusetts Municipal Wholesale Electric Company, No Opt. Call BBB+ 1,354,099
Power Supply System Revenue Bonds, 1987 Series A,
8.750%, 7/01/18
5,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 5,304,350
Revenue Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15
16,400 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 13,840,616
System Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37
8,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 6,899,040
System Revenue Bonds, 1997 Series B, 5.125%, 1/01/37
Massachusetts Turnpike Authority, Metropolitan Highway System
Revenue Bonds, 1999 Series A (Subordinated):
5,000 4.750%, 1/01/34 1/09 at 101 AAA 4,036,300
10,000 5.000%, 1/01/39 1/09 at 101 AAA 8,378,800
36,580 Massachusetts Water Resources Authority, General Revenue 11/02 at 102 A+ 35,925,218
Refunding Bonds, 1992 Series B, 5.500%, 11/01/15
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.0%
3,790 City of Adrian (Michigan), Hospital Finance Authority, Hospital 7/00 at 102 N/R*** 3,889,450
Revenue Bonds (Emma L. Bixby Medical Center), Series 1989A,
8.500%, 7/01/09 (Pre-refunded to 7/01/00)
6,000 The Economic Development Corporation of the City of Dearborn 8/04 at 102 AAA 5,412,420
(Michigan), Hospital Revenue Refunding Bonds (Oakwood
Obligated Group), Series 1994A, 5.250%, 8/15/21
10,000 City of Detroit, Local Development Finance Authority, Tax 5/09 at 101 N/R 8,612,200
Increment Bonds, Series 1998A, 5.500%, 5/01/21
1,400 City of Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 101 AAA 1,337,140
Refunding Bonds, Series 1995-B, 5.250%, 7/01/15
County of Grand Traverse (Michigan), Hospital Finance Authority,
Hospital Revenue Refunding Bonds (Munson Healthcare Obligated
Group), Series 1992A:
2,700 6.250%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 2,827,008
1,300 6.250%, 7/01/12 7/02 at 102 AAA 1,343,381
1,900 Michigan State Hospital Finance Authority, Revenue and Refunding 8/03 at 102 BBB- 1,678,764
Bonds (The Detroit Medical Center Obligated Group),
Series 1993A, 6.500%, 8/15/18
7,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/01 at 102 Aaa 7,383,740
Bonds (The Detroit Medical Center Obligated Group),
Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01)
18,755 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB- 13,365,376
Bonds (The Detroit Medical Center Obligated Group),
Series 1998A, 5.250%, 8/15/28
4,320 Michigan State Housing Development Authority, Rental Housing 4/03 at 102 AAA 4,248,158
Revenue Bonds, 1993 Series A, 5.875%, 10/01/17
15,750 Michigan State Housing Development Authority, Rental Housing 6/05 at 102 AAA 15,992,708
Revenue Bonds, 1995 Series B, 6.150%, 10/01/15
25,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/05 at 102 AAA 25,855,500
Bonds (Detroit Edison Company Pollution Control Bonds Project),
Collateralized Series 1995AA, 6.400%, 9/01/25
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.2%
4,000 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102 AAA 3,987,640
1995 Series D, 5.900%, 8/01/15
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.7%
13,000 Mississippi Hospital Equipment and Facilities Authority, Revenue 5/03 at 102 AAA 12,885,470
Refunding and Improvement Bonds (North Mississippi
Health Services), 1993 Series 1, 5.750%, 5/15/16
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MISSOURI - 0.1%
$ 3,075 The Industrial Development Authority of the City of West Plains, 11/09 at 101 N/R $ 2,770,360
Missouri, Hospital Facilities Revenue Bonds (Ozark Medical
Center), Series 1999, 6.750%, 11/15/24
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.2%
3,610 Consumers Public Power District, Nebraska, Nuclear Facility 7/00 at 100 A+ 3,609,747
Revenue Bonds, 1968 Series, 5.100%, 1/01/03
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.2%
24,625 Business Finance Authority of the State of New Hampshire, 10/03 at 102 BBB+ 21,837,450
Pollution Control Refunding Revenue Bonds (The United
Illuminating Company Project), 1993 Series A, 5.875%, 10/01/33
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.5%
25,625 New Jersey Economic Development Authority, Special Facility 9/09 at 101 BB 23,388,450
Revenue Bonds (Continental Airlines, Inc. Project), Series 1999,
6.250%, 9/15/29 (Alternative Minimum Tax)
5,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101 BBB- 5,062,900
Bonds, Trinitas Hospital Obligated Group Issue, Series 2000,
7.500%, 7/01/30
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 8.9%
5,360 Village of East Rochester Housing Authority (New York), FHA-Insured 8/07 at 102 AAA 5,269,309
Mortgage Revenue Bonds (St. John's Meadows Project),
Series 1997A, 5.600%, 8/01/17
26,745 Long Island Power Authority (New York), Electric System General 6/03 at 101 A- 24,438,244
Revenue Bonds, Series 1998A, 5.500%, 12/01/29
1,250 Metropolitan Transportation Authority (New York), Commuter 7/00 at 102 AAA 1,281,563
Facilities 1987 Service Contract Bonds, Series 3,
7.500%, 7/01/16 (Pre-refunded to 7/01/00)
5,000 The City of New York, General Obligation Bonds, Fiscal 8/03 at 101 1/2 A- 5,066,600
1994 Series D, 5.750%, 8/15/10
5,000 The City of New York, General Obligation Bonds, Fiscal 2/06 at 101 1/2 A- 5,022,750
1996 Series G, 5.750%, 2/01/14
10,000 The City of New York, General Obligation Bonds, Fiscal 8/06 at 101 1/2 A- 10,171,300
1997, Series E, 6.000%, 8/01/16
13,395 The City of New York, General Obligation Bonds, Fiscal 8/07 at 101 A- 13,427,416
1998 Series D, 5.500%, 8/01/10
39,610 The City of New York, General Obligation Bonds, Fiscal 10/07 at 101 A- 39,478,495
1997 Series G, 6.000%, 10/15/26
15,000 New York City Municipal Water Finance Authority, Water and 6/06 at 101 AAA 14,710,650
Sewer System Revenue Bonds, Fiscal 1996 Series B,
5.750%, 6/15/26
5,200 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101 A- 5,134,168
Lease Revenue Bonds (The City of New York Issue),
Series 1999, 6.000%, 5/15/39
7,000 Dormitory Authority of the State of New York, Mental Health 8/09 at 101 A 6,107,360
Services Facilities Improvement Revenue Bonds, Series 1999D,
5.250%, 2/15/29
15,000 New York Local Government Assistance Corporation, 4/01 at 102 AAA 15,647,700
Series 1991A Bonds, 7.000%, 4/01/16 (Pre-refunded to 4/01/01)
9,545 New York State Medical Care Facilities Finance Agency, 8/03 at 102 AAA 9,530,778
St. Luke's-Roosevelt Hospital Center, FHA-Insured Mortgage
Revenue Bonds, 1993 Series A, 5.600%, 8/15/13
10,000 New York State Thruway Authority, Local Highway and Bridge 4/08 at 101 AAA 9,594,900
Service Contract Bonds, Series 1998A-2, 5.250%, 4/01/15
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.4%
6,100 City of Charlotte, North Carolina, Refunding Certificates of 12/03 at 102 AAA 5,640,853
Participation (Convention Facility Project), Series 1993C,
5.250%, 12/01/20
11,965 North Carolina Eastern Municipal Power Agency, Power System 9/03 at 102 1/2 BBB 11,095,623
Revenue Bonds, Series 1985-G, 5.750%, 12/01/16
11,610 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 102 BBB 11,140,376
Revenue Bonds, Series 1993-D, 5.875%, 1/01/14
1,000 North Carolina Eastern Municipal Power Agency, Power System 1/07 at 102 AAA 1,010,470
Revenue Bonds, Refunding Series 1996A, 5.700%, 1/01/13
14,060 North Carolina Municipal Power Agency Number 1, Catawba 1/03 at 100 BBB+ 13,197,138
Electric Revenue Bonds, Series 1992, 5.750%, 1/01/15
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN MUNICIPAL VALUE FUND, INC. (NUV) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NORTH CAROLINA (continued)
$ 11,230 North Carolina Municipal Power Agency Number 1, Catawba Electric 7/00 at 100 BBB+ $ 10,539,355
Revenue Bonds, Series 1985B, 6.000%, 1/01/20
10,000 North Carolina Municipal Power Agency Number 1, Catawba Electric 1/10 at 101 BBB+ 9,933,000
Revenue Bonds, Series 1999B, 6.500%, 1/01/20
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.1%
2,350 Midwest City Memorial Hospital Authority (Midwest City, 4/02 at 102 BBB+*** 2,496,288
Oklahoma), Hospital Revenue Bonds, Series 1992,
7.375%, 4/01/22 (Pre-refunded to 4/01/02)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.0%
5,955 Pennsylvania Convention Center Authority, Refunding Revenue 9/04 at 102 BBB 6,106,733
Bonds, 1994 Series A, 6.750%, 9/01/19
11,175 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/03 at 102 AA+ 10,984,019
Revenue Bonds, Series 1993-36, 5.450%, 10/01/14
9,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 9,057,780
Revenue Bonds, Series 1996-51, 6.375%, 4/01/28
(Alternative Minimum Tax)
18,850 Pennsylvania Intergovernmental Cooperation Authority, Special 6/03 at 100 AAA 16,379,519
Tax Revenue Refunding Bonds (City of Philadelphia Funding
Program), Series of 1993A, 5.000%, 6/15/22
City of Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 1993:
12,745 5.500%, 6/15/14 (Pre-refunded to 6/15/03) 6/03 at 102 AAA 13,173,232
19,255 5.500%, 6/15/14 6/03 at 102 AAA 19,132,153
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.8%
6,250 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA 5,520,313
Hospital Financing Revenue Bonds, Lifespan Obligated Group
Issue, Series 1996, 5.250%, 5/15/26
10,000 State of Rhode Island, Providence Plantations, Lease Participation 10/07 at 101 AAA 9,578,800
Certificates (Howard Center Improvements), 1997 Series,
5.375%, 10/01/16
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.0%
13,000 Piedmont Municipal Power Agency, Electric Revenue Bonds, 7/00 at 100 BBB- 9,952,150
1986 Refunding Series, 5.000%, 1/01/25
8,000 South Carolina Jobs and Economic Development Authority, 12/10 at 102 Baa1 7,792,720
Hospital Improvement Revenue Bonds (Palmetto Health Alliance),
Series 2000A, 7.375%, 12/15/21
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.1%
2,125 Municipal Energy Acquisition Corporation (Tennessee), No Opt. Call AAA 1,841,695
Gas Revenue Bonds, Series 1999, 4.125%, 3/01/08
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 5.7%
11,990 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, 12/00 at 102 Baa1 12,225,004
Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29
0.(Alternative Minimum Tax)
12,525 City of Austin, Texas, Combined Utility Systems Revenue Bonds, 5/01 at 100 AAA 12,972,393
Series 1986A, 8.000%, 11/15/16 (Pre-refunded to 5/15/01)
24,265 City of Austin, Texas, Combined Utility Systems Revenue Refunding No Opt. Call AAA 34,908,114
Bonds, Series 1992A, 12.500%, 11/15/07
2,970 Corpus Christi (Texas), Housing Finance Corporation, 7/01 at 103 AAA 3,147,784
Single Family Mortgage Senior Revenue Refunding Bonds,
Series 1991A, 7.700%, 7/01/11
10,000 Harris County, Texas, Toll Road Unlimited Tax and Subordinate 8/01 at 102 AA 10,421,200
Lien Revenue Refunding Bonds, Series 1991, 6.750%, 8/01/14
3,470 Irving Independent School District, Unlimited Tax School Building No Opt. Call AAA 1,897,361
Bonds, Series 1997, 0.000%, 2/15/11
5,685 Irving Independent School District, Unlimited Tax Refunding Bonds, No Opt. Call AAA 3,306,112
Series 1997A, 0.000%, 2/15/10
22,060 Leander Independent School District (Williamson and Travis 8/09 at 31 15/32 AAA 3,722,404
Counties, Texas), Unlimited Tax School Building and Refunding
Bonds, Series 2000, 0.000%, 8/15/27 (WI)
14,625 Matagorda County Navigation District Number One (Texas), 10/00 at 102 AAA 14,646,206
Collateralized Revenue Refunding Bonds (Houston Lighting
and Power Company Project), Series 1995, 5.800%, 10/15/15
4,000 Industrial Development Corporation of the Port of Corpus Christi 4/08 at 102 BBB- 3,424,640
(Texas), Revenue Refunding Bonds (Valero Refining and
Marketing Company Project), 5.400%, 4/01/18
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS (continued)
$ 5,750 Weslaco Health Facilities Development Corporation, Hospital 1/04 at 102 AAA $ 5,213,813
Revenue Bonds (Knapp Medical Center Project), Series 1994,
5.375%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.8%
Intermountain Power Agency, Power Supply Revenue Refunding
Bonds, 1993 Series A:
57,275 5.500%, 7/01/20 7/03 at 102 A+ 53,849,382
7,315 5.000%, 7/01/23 7/03 at 100 A+ 6,254,471
12,000 Intermountain Power Agency (Utah), Power Revenue Refunding 7/06 at 102 A+ 10,358,160
Bonds, 1996 Series D, 5.000%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.1%
430 Washington Public Power Supply System, Nuclear Project No Opt. Call AAA 457,004
No. 1 Revenue Bonds, 14.375%, 7/01/01
9,450 Washington Public Power Supply System, Nuclear Project 7/03 at 102 AAA 9,321,953
No. 1 Refunding Revenue Bonds, Series 1993A,
5.700%, 7/01/17
27,000 Washington Public Power Supply System, Nuclear Project 7/03 at 102 Aa1 26,362,800
No. 1 Refunding Revenue Bonds, Series 1993C, 5.400%, 7/01/12
2,970 Washington Public Power Supply System (Bonneville), Nuclear 7/03 at 102 Aa1 2,816,243
Project No. 1 Refunding Revenue Bonds, Series 1993C,
5.375%, 7/01/15
11,390 Washington Public Power Supply System, Nuclear Project No. 2 7/03 at 102 Aa1 11,467,338
Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/12
17,700 Washington Public Power Supply System, Nuclear Project No. 2 7/04 at 102 Aa1 17,534,682
Refunding Revenue Bonds, Series 1994A 5.375%, 7/01/10
20,975 Washington Public Power Supply System, Nuclear Project No. 3 7/01 at 102 Aaa 21,823,019
Refunding Revenue Bonds, Series 1991A 6.500%, 7/01/18
(Pre-refunded to 7/01/01)
Washington Public Power Supply System, Nuclear Project No. 3
Refunding Revenue Bonds, Series 1993B:
11,510 5.625%, 7/01/12 7/03 at 102 Aa1 11,524,272
9,000 5.600%, 7/01/17 7/03 at 102 AAA 8,777,430
Washington Public Power Supply System, Nuclear Project No. 3
Refunding Revenue Bonds, Series 1993C:
81,000 5.400%, 7/01/12 7/03 at 102 Aa1 79,088,400
14,850 5.375%, 7/01/15 7/03 at 102 Aa1 14,081,215
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.4%
7,180 West Virginia Housing Development Fund, Housing Finance Bonds, 11/06 at 102 AAA 7,189,404
Series 1997-A, 6.050%, 5/01/27
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.1%
20,385 The Wisconsin Public Power Incorporated System, Power Supply 7/03 at 102 AAA 18,529,760
System Revenue Bonds, Series 1993A, 5.250%, 7/01/21
3,315 Wisconsin Housing and Economic Development Authority, 3/04 at 102 AA 3,365,620
Homeownership Revenue Bonds, 1994 Series B, 6.750%, 9/01/25
(Alternative Minimum Tax)
17,020 Wisconsin Health and Educational Facilities Authority, 8/03 at 102 AAA 16,062,450
Revenue Bonds (Sisters of the Sorrowful Mother - Ministry
Corporation), Series 1993D, 5.500%, 8/15/19
1,750 Wisconsin Health and Educational Facilities Authority, 8/03 at 102 AAA 1,698,340
Revenue Bonds (Sisters of the Sorrowful Mother - Ministry
Corporation), Series 1993C, 5.400%, 8/15/13
------------------------------------------------------------------------------------------------------------------------------------
$ 2,062,554 Total Investments - (cost $1,825,804,962) - 99.0% 1,830,624,730
============= --------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 17,683,703
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,848,308,433
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN MUNICIPAL INCOME FUND, INC. (NMI)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA - 8.4%
$ 5,530 Adelanto School District (San Bernardino County, California), No Opt. Call AAA $ 1,456,381
General Obligation Bonds (Bank Qualified), 1997 Series A,
0.000%, 9/01/22
Brea Olinda Unified School District (California), General
Obligation Bonds, Election of 1999, Series 1999A:
2,000 0.000%, 8/01/21 No Opt. Call AAA 566,240
2,070 0.000%, 8/01/22 No Opt. Call AAA 548,695
2,120 0.000%, 8/01/23 No Opt. Call AAA 528,219
3,000 California Pollution Control Financing Authority, Solid Waste 7/07 at 102 N/R 3,197,820
Disposal Revenue Bonds (CanFibre of Riverside Project),
Tax-Exempt Series 1997A, 9.000%, 7/01/19
(Alternative Minimum Tax)
1,150 Foothill/Eastern Transportation Corridor Agency (California), 1/07 at 100 AAA 1,225,567
Toll Road Revenue Bonds, Series 1995A, 6.000%, 1/01/34
(Pre-refunded to 1/01/07)
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.1%
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
410 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 Aaa 440,299
(Pre-refunded to 11/15/02)
1,590 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 BBB+ 1,675,749
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A:
285 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Aaa 307,107
(Pre-refunded to 11/15/01)
780 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 BBB+ 830,950
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1990A:
110 8.500%, 11/15/23 (Alternative Minimum Tax) 11/00 at 102 Aaa 114,550
(Pre-refunded to 11/15/00)
1,195 8.500%, 11/15/23 (Alternative Minimum Tax) 11/00 at 102 BBB+ 1,238,092
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 6.3%
1,480 Capitol Region Education Council (Connecticut), Revenue Bonds, 10/05 at 102 BBB 1,525,332
6.750%, 10/15/15
3,000 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102 BBB- 3,002,040
Revenue Bonds, University of New Haven Issue, Series D,
6.700%, 7/01/26
1,000 Housing Authority of the City of Willimantic, Multifamily Housing 10/05 at 105 AAA 1,098,500
Revenue Bonds, Series 1995A (GNMA Collateralized
Mortgage Loan - Village Heights Apartments Project),
8.000%, 10/20/30
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.2%
1,670 Dade County Industrial Development Authority, Industrial 6/05 at 102 N/R 1,748,874
Development Revenue Bonds, Series 1995 (Miami Cerebral
Palsy Residential Services, Inc. Project), 8.000%, 6/01/22
2,000 Martin County Industrial Development Authority (Florida), Industrial 12/04 at 102 BBB- 2,009,520
Development Revenue Bonds (Indianatown Cogeneration L.P.
Project), Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.2%
4,320 City of Chicago, Tax Increment Allocation Bonds (Irving/Cicero 1/09 at 100 N/R 4,101,970
Redevelopment Project), Series 1998, 7.000%, 1/01/14
1,300 Illinois Health Facilities Authority, Revenue Bonds, Series 1993 9/03 at 102 A- 1,360,476
(Northern Illinois Medical Center Project), 6.000%, 9/01/19
2,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 10/03 at 102 A- 1,720,880
Series 1993 (Illinois Masonic Medical Center), 5.500%, 10/01/19
Illinois Health Facilities Authority, Revenue and Revenue
Refunding Bonds, Series 1990C:
1,010 9.500%, 11/15/19 (Pre-refunded to 11/15/00) 11/00 at 102 AAA 1,056,925
475 9.500%, 11/15/19 11/00 at 102 AAA 497,819
1,195 Illinois Housing Development Authority, Homeowner Mortgage 8/04 at 102 AA 1,211,861
Revenue Bonds, 1994 Series A-2, 6.700%, 8/01/25
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 1,985 Joliet Regional Port District, Airport Facilities Revenue Bonds, 7/07 at 103 N/R $ 1,916,835
Lewis University Airport, Series 1997A, 7.250%, 7/01/18
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 9.5%
9,000 Whitley County, Indiana, Solid Waste and Sewage Disposal 11/10 at 102 N/R 8,515,080
Revenue Bonds (Steel Dynamics Inc., Project), Series 1998,
7.250%, 11/01/18 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.4%
Louisiana Public Facilities Authority, Extended Care Facilities
Revenue Bonds (Comm-Care Corporation Project), Series 1994:
520 11.000%, 2/01/04 No Opt. Call BBB 570,440
2,000 11.000%, 2/01/14 No Opt. Call BBB 2,525,360
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.3%
2,000 Anne Arundel County, Maryland, Multifamily Housing Revenue No Opt. Call BBB 2,093,600
Bonds (Twin Coves Apartments Project), Series 1994,
7.450%, 12/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.5%
3,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,182,610
Revenue Bonds (SEMASS Project), Series 1991A,
9.000%, 7/01/15
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.2%
2,840 Minnesota Housing Finance Agency, Single Family Mortgage 1/07 at 102 AA+ 2,844,516
Bonds, 1995 Series M, 5.875%, 1/01/17
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 4.3%
4,500 Mississippi Business Finance Corporation, Pollution Control 10/03 at 102 BBB- 3,904,920
Revenue Refunding Bonds (System Energy Resources, Inc.
Project), Series 1998, 5.875%, 4/01/22
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 1.5%
1,500 Montana Health Facility Authority, Health Care Revenue Bonds, 6/06 at 102 BBB- 1,354,110
Series 1996 (Community Medical Center, Inc.), 6.375%, 6/01/18
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.1%
1,000 New Hampshire Higher Educational and Health Facilities Authority, 1/07 at 102 BBB- 961,530
Revenue Bonds, Series 1997 (New Hampshire College),
6.375%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 18.8%
1,500 County of Cattaraugus, New York, Industrial Development Agency, No Opt. Call N/R 1,487,355
Tax-Exempt Industrial Development Revenue Bonds,
Series 1999A (Laidlaw Energy and Environmental, Inc. Project),
8.500%, 7/01/21 (Alternative Minimum Tax)
400 Village of East Rochester Housing Authority, FHA-Insured 8/08 at 102 AA 372,928
Mortgage Revenue Bonds (Linden Knoll Inc. Project),
Series 1998, 5.250%, 8/01/17
5,000 Erie County Industrial Development Agency, Solid Waste 12/10 at 103 N/R 5,383,800
Disposal Facility Revenue Bonds (1998 CanFibre of
Lackawanna Project), 8.875%, 12/01/13
(Alternative Minimum Tax)
The City of New York, General Obligation Bonds, Fiscal 1996 Series F:
500 5.750%, 2/01/15 2/06 at 101 1/2 A- 500,725
1,400 5.750%, 2/01/19 2/06 at 101 1/2 A- 1,374,044
1,000 The City of New York, General Obligation Bonds, Fiscal 2/06 at 101 1/2 A- 1,004,550
1996 Series G, 5.750%, 2/01/14
1,250 The City of New York, General Obligation Bonds, Fiscal 11/06 at 101 1/2 A- 1,281,075
1997 Series D, Tax Exempt Bonds, 5.875%, 11/01/11
2,500 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 2,719,525
Hospital Medical Center Secured Hospital Revenue Bonds,
Series 1995-A, 6.800%, 8/15/12 (Pre-refunded to 2/15/05)
2,685 UFA Development Corporation, Utica, New York, FHA-Insured 1/07 at 102 Aa2 2,698,506
Mortgage Revenue Bonds, Series 1997A (Loretto-Utica Project),
6.125%, 7/01/35
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN MUNICIPAL INCOME FUND, INC. (NMI) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OHIO - 1.2%
$ 1,000 County of Franklin, Ohio, Hospital Facilities Mortgage Revenue 7/03 at 103 AAA $ 1,074,790
Bonds, 1991 Series A (Ohio Presbyterian Retirement Services),
8.750%, 7/01/21 (Pre-refunded to 7/01/03)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.0%
880 Oklahoma County Industrial Authority, Revenue Bonds, 7/00 at 100 N/R 882,253
Oklahoma Blood Institute Project, Series 1988, 9.000%, 7/01/03
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.1%
2,000 State of Oregon Housing and Community Services Department, 7/07 at 101 1/2 Aa2 1,892,760
Mortgage Revenue Bonds (Single Family Mortgage Program),
1997 Series H, 5.650%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.1%
1,000 Pennsylvania Convention Center Authority, Refunding Revenue 9/04 at 102 BBB 1,025,480
Bonds, 1994 Series A, 6.750%, 9/01/19
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 5.7%
1,055 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, 12/00 at 102 Baa1 1,075,678
Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29
(Alternative Minimum Tax)
710 Hidalgo County Housing Finance Corporation (Florida), 4/04 at 102 Aaa 726,131
Single Family Mortgage Revenue Bonds (GNMA and FNMA
Collateralized), Series 1994A, 7.000%, 10/01/27
(Alternative Minimum Tax)
3,000 Laredo Independent School District (Webb County, Texas), 8/09 at 100 AAA 2,722,950
Unlimited Tax School Building Bonds, Series 1999,
5.250%, 8/01/24
West Independent School District (McLennan and Hill Counties,
Texas), Unlimited Tax School Building and Refunding Bonds,
Series 1998:
1,000 0.000%, 8/15/25 8/13 at 51 27/32 AAA 210,280
1,000 0.000%, 8/15/26 8/13 at 49 3/32 AAA 197,710
1,000 0.000%, 8/15/27 8/13 at 46 15/32 AAA 185,590
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 1.5%
1,240 Housing Authority of the City of Bellingham, Washington, 11/04 at 100 A1*** 1,334,883
Housing Revenue Bonds, Series 1994 (Cascade Meadows
Project), 7.100%, 11/01/23 (Pre-refunded to 11/01/04)
------------------------------------------------------------------------------------------------------------------------------------
$ 98,155 Total Investments - (cost $87,087,539) - 97.4% 87,483,880
============= --------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 2,357,050
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $89,840,930
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS (Unaudited)
April 30, 2000
<CAPTION>
MUNICIPAL VALUE MUNICIPAL INCOME
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in municipal securities, at market value $1,830,624,730 $87,483,880
Cash 15,037,619 896,809
Receivables:
Interest 36,722,465 2,034,057
Investments sold 950,000 10,058
Other assets 157,504 1,957
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,883,492,318 90,426,761
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 24,552,969 --
Accrued expenses:
Management fees 867,405 48,163
Other 1,477,784 70,693
Dividends payable 8,285,727 466,975
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 35,183,885 585,831
------------------------------------------------------------------------------------------------------------------------------------
Net assets $1,848,308,433 $89,840,930
====================================================================================================================================
Shares outstanding 194,959,520 7,985,332
====================================================================================================================================
Net asset value per share outstanding (net assets
divided by shares outstanding) $ 9.48 $ 11.25
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS (Unaudited)
Six Months Ended April 30, 2000
<CAPTION>
MUNICIPAL VALUE MUNICIPAL INCOME
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME $56,616,574 $3,138,768
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 5,197,393 290,683
Shareholders' servicing agent fees and expenses 226,141 12,119
Custodian's fees and expenses 140,361 14,833
Directors' fees and expenses 10,444 2,272
Professional fees 5,397 1,989
Shareholders' reports - printing and mailing expenses 95,302 5,784
Stock exchange listing fees 79,223 8,132
Investor relations expense 93,816 4,606
Other expenses 91,988 3,839
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 5,940,065 344,257
Custodian fee credit (68,140) (2,957)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,871,925 341,300
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 50,744,649 2,797,468
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions 3,088,927 (334,176)
Change in net unrealized appreciation (depreciation) of investments (3,026,478) (630,202)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments 62,449 (964,378)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $50,807,098 $1,833,090
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
<CAPTION>
MUNICIPAL VALUE MUNICIPAL INCOME
-----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
4/30/00 10/31/99 4/30/00 10/31/99
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 50,744,649 $ 99,695,445 $ 2,797,468 $ 5,550,581
Net realized gain (loss) from investment transactions 3,088,927 (646,778) (334,176) 461,435
Net change in unrealized appreciation
(depreciation) of investments (3,026,478) (156,397,771) (630,202) (5,266,839)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 50,807,098 (57,349,104) 1,833,090 745,177
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income (49,831,729) (99,429,121) (2,772,491) (5,487,947)
From accumulated net realized gains
from investment transactions -- (18,170,228) (461,215) (592,941)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (49,831,729) (117,599,349) (3,233,706) (6,080,888)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from shares issued to shareholders due to
reinvestment of distributions -- -- 118,902 702,675
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 975,369 (174,948,453) (1,281,714) (4,633,036)
Net assets at the beginning of period 1,847,333,064 2,022,281,517 91,122,644 95,755,680
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $1,848,308,433 $1,847,333,064 $89,840,930 $91,122,644
===================================================================================================================================
Balance of undistributed net investment
income at the end of period $ 1,399,232 $ 486,312 $ 211,872 $ 186,895
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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).
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities. 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
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
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 have extended settlement periods. 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 the when-issued and delayed delivery purchase commitments. At
April 30, 2000, Municipal Value had outstanding when-issued purchase commitments
of $18,380,244. There were no such outstanding purchase commitments in Municipal
Income.
Investment 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
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount 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. Net realized capital gain
and market discount distributions are subject to federal taxation.
<PAGE>
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of 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 occur and will be classified as either distributions in excess
of net investment income, distributions in excess of net realized gains and/or
distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby the custodian fees
and expenses are reduced by credits earned on each Fund's cash on deposit with
the bank. Such deposit arrangements are an alternative to overnight investments.
Derivative Financial Instruments
The Funds may invest in 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 six months ended April 30, 2000.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
2. FUND SHARES
Transactions in shares were as follows:
MUNICIPAL VALUE MUNICIPAL INCOME
--------------------------- ---------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
4/30/00 10/31/99 4/30/00 10/31/99
--------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment of
distributions -- -- 10,654 57,857
================================================================================
3. DISTRIBUTIONS TO SHAREHOLDERS
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on June 1, 2000, to shareholders of record on May 15,
2000, as follows:
MUNICIPAL MUNICIPAL
VALUE INCOME
--------------------------------------------------------------------------------
Dividend per share $.0425 $.0585
================================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the six months ended April
30, 2000, were as follows:
MUNICIPAL MUNICIPAL
VALUE INCOME
--------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $185,913,972 $2,702,768
Short-term municipal securities 41,270,000 2,100,000
Sales and maturities:
Long-term municipal securities 168,598,963 3,521,614
Short-term municipal securities 41,270,000 2,100,000
================================================================================
At April 30, 2000, the identified cost of investments owned for federal income
tax purposes were as follows:
MUNICIPAL MUNICIPAL
VALUE INCOME
--------------------------------------------------------------------------------
$1,825,804,962 $87,087,539
================================================================================
At October 31, 1999, the Funds' last fiscal year end, Municipal Value had unused
capital loss carryforwards of $646,777 available for federal income tax purposes
to be applied against future capital gains, if any. If not applied, the
carryforwards will expire in the year 2007.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at April 30, 2000, were as follows:
Municipal Municipal
Value Income
-------------------------------------------------------------------------------
Gross unrealized:
appreciation $ 50,738,666 $ 2,340,160
depreciation (45,918,898) (1,943,819)
-------------------------------------------------------------------------------
Net unrealized appreciation $ 4,819,768 $ 396,341
===============================================================================
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 assets of each Fund as
follows:
AVERAGE DAILY NET ASSETS MUNICIPAL VALUE
--------------------------------------------------------------------------------
For the first $500 million .3500 of 1%
For the next $500 million .3250 of 1
For net assets over $1 billion .3000 of 1
================================================================================
AVERAGE DAILY NET ASSETS MUNICIPAL INCOME
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
================================================================================
In addition, Municipal Value pays an annual management fee, payable monthly,
based on gross interest income as follows:
GROSS INTEREST INCOME MUNICIPAL VALUE
--------------------------------------------------------------------------------
For the first $50 million 4.125%
For the next $50 million 4.000
For gross income over $100 million 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 of its 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.
<PAGE>
7. COMPOSITION OF NET ASSETS
At April 30, 2000, net assets consisted of:
MUNICIPAL MUNICIPAL
VALUE INCOME
-------------------------------------------------------------------------------
Shares, $.01 par value per share $ 1,949,595 $ 79,853
Paid-in surplus 1,837,697,688 89,487,793
Balance of undistributed net investment income 1,399,232 211,872
Accumulated net realized gain (loss) from
investment transactions 2,442,150 (334,929)
Net unrealized appreciation of investments 4,819,768 396,341
-------------------------------------------------------------------------------
Net assets $1,848,308,433 $ 89,840,930
===============================================================================
Authorized Shares 350,000,000 200,000,000
===============================================================================
8. INVESTMENT COMPOSITION
At April 30, 2000, the revenue sources by municipal purpose, expressed as a
percent of long-term investments, were as follows:
MUNICIPAL MUNICIPAL
VALUE INCOME
--------------------------------------------------------------------------------
Basic Materials --% 10%
Education and Civic Organizations 1 5
Healthcare 14 6
Housing/Multifamily 3 4
Housing/Single Family 5 8
Long-Term Care 1 9
Tax Obligation/General 6 11
Tax Obligation/Limited 11 8
Transportation 13 8
U.S. Guaranteed 11 10
Utilities 28 21
Water and Sewer 7 --
--------------------------------------------------------------------------------
100% 100%
================================================================================
Certain long-term and intermediate-term investments owned by the Funds are
either 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, both of which ensure the timely payment of principal and interest in
the event of default (41% for Municipal Value and 14% for Municipal Income).
Such insurance or escrow, however, does not guarantee the market value of the
municipal securities or the value of the Funds' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (Unaudited)
Selected data for a share outstanding throughout each period:
<CAPTION>
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------- ---------------------------------
NET REALIZED/
BEGINNING NET UNREALIZED NET
NET ASSET INVESTMENT INVESTMENT INVESTMENT CAPITAL
VALUE INCOME GAIN (LOSS) TOTAL INCOME GAINS TOTAL
MUNICIPAL VALUE
<S> <C> <S> <S> <S> <S> <S> <S>
Year Ended 10/31:
2000 (a) $ 9.48 $.26 $-- $ .26 $(.26) $-- $(.26)
1999 10.37 .51 (.80) (.29) (.51) (.09) (.60)
1998 10.29 .53 .21 .74 (.53) (.13) (.66)
1997 10.18 .58 .22 .80 (.58) (.11) (.69)
1996 10.29 .61 (.03) .58 (.61) (.08) (.69)
1995 9.87 .64 .46 1.10 (.65) (.03) (.68)
<CAPTION>
MUNICIPAL INCOME
<S> <C> <S> <S> <S> <S> <S> <S>
Year Ended 10/31:
2000 (a) 11.43 .35 (.12) .23 (.35) (.06) (.41)
1999 12.10 .70 (.61) .09 (.69) (.07) (.76)
1998 12.02 .71 .11 .82 (.71) (.03) (.74)
1997 11.96 .76 .11 .87 (.76) (.05) (.81)
1996 11.97 .77 (.02) .75 (.76) -- (.76)
1995 11.54 .77 .44 1.21 (.78) -- (.78)
<PAGE>
<CAPTION>
TOTAL RETURNS
--------------------------
ENDING
NET ASSET ENDING BASED ON BASED ON NET
VALUE MARKET VALUE MARKET VALUE+ ASSET VALUE+
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL VALUE
Year Ended 10/31:
2000 (a) $ 9.48 $ 8.1875 (2.08)% 2.74%
1999 9.48 8.6250 (7.50) (2.94)
1998 10.37 9.9375 10.55 7.49
1997 10.29 9.6250 10.39 8.18
1996 10.18 9.3750 3.10 5.84
1995 10.29 9.7500 11.50 11.51
<CAPTION>
MUNICIPAL INCOME
<S> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) 11.25 10.9375 3.22 2.02
1999 11.43 11.0000 (5.77) .74
1998 12.10 12.4375 5.21 7.06
1997 12.02 12.5625 11.96 7.60
1996 11.96 12.0000 12.42 6.49
1995 11.97 11.3750 11.95 10.86
<PAGE>
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------
BEFORE CREDIT AFTER CREDIT**
----------------------------- ---------------------------
RATIO OF NET RATIO OF NET
RATIO OF INVESTMENT RATIO OF INVESTMENT
ENDING EXPENSES INCOME TO EXPENSES INCOME TO PORTFOLIO
NET ASSETS TO AVERAGE AVERAGE TO AVERAGE AVERAGE TURNOVER
(000) NET ASSETS NET ASSETS NET ASSETS NET ASSETS RATE
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MUNICIPAL VALUE
Year Ended 10/31:
2000 (a) $1,848,308 .65%* 5.52%* .64%* 5.53%* 9%
1999 1,847,333 .65 5.10 .65 5.10 13
1998 2,022,282 .65 5.18 .65 5.18 19
1997 2,005,380 .68 5.71 .68 5.71 19
1996 1,984,627 .69 5.98 .69 5.98 18
1995 2,006,450 .70 6.35 .70 6.35 13
<CAPTION>
MUNICIPAL INCOME
<S> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) 89,841 .77* 6.23* .76* 6.24* 3
1999 91,123 .83 5.88 .82 5.89 31
1998 95,756 .82 5.91 .82 5.91 23
1997 94,283 .83 6.39 .83 6.39 9
1996 93,249 .80 6.49 .80 6.49 10
1995 92,850 .84 6.53 .84 6.53 15
* Annualized.
** After custodian fee credit, where applicable.
+ Total 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. Total returns are not
annualized.
(a) For the six months ended April 30, 2000.
</TABLE>
<PAGE>
Build Your Wealth Automatically
Sidebar text: Nuveen offers a number of convenient ways to add to your portfolio
and earn the tax-free income you need to achieve your financial goals.
Sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to set
up your reinvestment account.
NUVEEN EXCHANGE-TRADED FUNDS 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 invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also potentially 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.
Dollar-cost averaging does not ensure a profit, nor does it protect you against
loss in a declining market. Because such a plan involves continuous investment
regardless of fluctuating prices, investors should consider their financial
ability to continue purchases through periods of low price levels.
EASY AND CONVENIENT
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.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or 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 normally
be invested shortly after 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.
FLEXIBILITY
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 can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment advisor 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 financial advisor or call us at (800)
257-8787.
<PAGE>
Fund Information
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common stock in the future at
such times and in such amounts as is deemed advisable. No shares were
repurchased during the 6-month period ended April 30, 2000. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors
FOR GENERATIONS
Photo of: John Nuveen, Sr.
John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen to help them
grow and keep the money they've earned. Financial advisors, investors and their
families have associated Nuveen investments with quality, expertise and
dependability since 1898. That is why financial advisors have entrusted the
assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen investment products and services can help you
preserve your financial security, talk with your financial advisor, or call us
at (800) 257-8787 for more information, including a prospectus where applicable.
Please read that information carefully before you invest.
LOGO: NUVEEN Investments
Invest well. Look ahead. LEAVE YOUR MARK.(sm)
John Nuveen & Co. Incorporated o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com
FSA-1-4-00
