Nuveen Exchange- Traded Funds
Providing tax-free income to help you live your dreams.
NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN MUNICIPAL ADVANTAGE FUND, INC.
NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC.
SEMIANNUAL REPORT/APRIL 30, 1995
Photo of man reading statement on porch.
CONTENTS
3 Dear shareholder
5 Answering your questions
8 Fund performance
9 Amendment to dividend reinvestment plan
10 Getting to know your fund
12 Portfolio of investments
39 Statement of net assets
40 Statement of operations
41 Statement of changes in net assets
43 Notes to financial statements
52 Financial highlights
<PAGE>
Dear shareholder
"Providing secure income remains our top priority"
Photo of Richard J. Franke, Chairman of the Board
The 12 months ended April 30, 1995, was a difficult period for the bond
markets. Since February 1994, the Federal Reserve Board has raised interest
rates seven times to fend off future inflation, and during this period the
prices of all bonds and bond funds declined. Since April 30, the bond markets
have seen marked improvement.
This period of unusually high volatility and uncertainty has brought home a
basic fact about fixed-income securities: interest rates are subject to
change, and sometimes the changes can have dramatic effects on net asset
values. At Nuveen, we believe that the best approach to tax-free investing in
such tumultuous times is to focus on quality and income dependability. By this
standard, in one of the most challenging periods the municipal market has seen
in years, your Fund continued to meet its objectives well, providing an
attractive level of tax free income while holding portfolio values in line
with or higher than the market as a whole.
Looking first at income, on April 30, current yields on share prices for the
funds covered in this report ranged from 7.20% to 7.26%. To equal these
yields, an investor in the 36% federal income tax bracket would need to earn
at least 11.25% on taxable alternatives. This taxable yield is difficult to
achieve on investments of comparable quality.
The fact that your Fund is leveraged means that its net asset value per
share will be somewhat more sensitive to interest rate changes, both upward
and downward, than unleveraged funds. However, on a total return basis, for
the one-year period ended April 30, all of the funds covered in this report
ranked in the top quartile among 65 closed-end national leveraged funds ranked
by Lipper Analytical Services.
As we have noted in past reports, the municipal market's supply and demand
fundamentals continue to be sound. To put these trends in perspective, in 1994
the supply of new municipal bonds declined by approximately 40% from 1993, a
trend expected to continue in 1995. At the same time, demand for tax-free
bonds, which has been subdued over the last 12 months as a result of the
market's extraordinary volatility, seems to be resuming its long-term upward
trend as investors recognize the exceptional yields tax-free bonds offer at
current price levels.
This combination of lower supply, which may be reduced further by the high
volume of bond calls expected in 1995, and the likelihood of rising demand
should help support municipal bond prices in the long term.
Through our value approach to investing--a disciplined approach to security
selection and portfolio construction supported by one of the largest and most
respected research teams in the municipal industry--we will continue to pursue
the objectives of your Fund: attractive tax-free income and the enhancement of
portfolio value relative to the municipal bond market.
In closing, I want to welcome new investors to the Nuveen Exchange-Traded
Funds and thank those who have been with us for some time. All of us at Nuveen
appreciate your confidence in our family of municipal bond funds, and we look
forward to helping you reach your tax-free investment objectives in the
future.
Sincerely,
Richard J. Franke
Chairman of the Board
June 15, 1995
<PAGE>
Answering your questions
We spoke recently with Tom Spalding, head of Nuveen's portfolio management
team, and asked him about developments in the municipal market and the outlook
for Nuveen's Tax-Free Exchange-Traded Funds.
How did my Fund hold its value compared with the market?
These have been difficult times for all fixed-income investors. The Bond Buyer
40 index--a measure of municipal market value--declined by 0.37% over the past
12 months and 30-year Treasury bonds declined by 0.90% during the year. The
net asset values of the funds covered in this report, however, showed modest
gains from levels of a year ago.
Viewed in that context, the Nuveen funds covered in this report held their
value well for the 12 months ended April 30, 1995.
The fact that these funds are leveraged also increases the impact of
interest rate changes on the funds' net asset values per common share. Keep in
mind, however, that leverage also has enabled these funds to generate a higher
level of tax-free income than unleveraged funds.
Since my Fund is leveraged, will rising short-term interest rates affect
my dividends?
With the long-term bonds in these funds' portfolios yielding over 7.0% and the
average 7-day rate on short-term preferred shares averaging 4.0% over the past
three months, leverage has provided an important income benefit to our
shareholders over the past year.
Although the funds' core dividends are set to provide relatively stable
income, steady increases in short-term interest rates will affect these
dividends over time.
In general, our leveraged funds' dividends continue to be highly attractive
compared with both unleveraged and taxable alternatives. All things
considered, prudent leverage can provide highly attractive returns in a
variety of market conditions to investors who understand its uses, benefits,
and characteristics, and are willing to accept somewhat higher short-term NAV
fluctuations in anticipation of greater long-range returns.
Will bond calls affect my income or the stability of the net asset value of my
shares?
In general, bond calls can mean some reduction in income for investors in both
individual bonds and bond funds, because bonds issued when interest rates were
higher are replaced with lower-yielding bonds in today's market. The effect of
bond calls--both on income and net asset values--depends to some extent on the
age of a fund and the types of bonds in its portfolio.
Bond calls may have an effect on asset values especially for older funds
that hold high coupon bonds that may be subject to calls. These bonds also
often are priced at premiums to their par values and to their call prices. As
we saw last year, this premium is a "cushion" that can soften the effect of
rising and falling interest rates. As these bonds approach their call dates,
the premiums gradually approach the bonds' call prices, potentially reducing
net asset values.
Newer funds, on the other hand, primarily hold bonds priced at discounts to
their par values. As a result, these funds will experience fewer calls. At the
same time, these bonds are more sensitive to interest rate changes, both up
and down, and they are unaffected by the declining premium values related to
called bonds.
Of course, we manage all of our portfolios with calls in mind. As part of
our basic management process, we continually evaluate opportunities to sell
bonds approaching their call dates and to reinvest the proceeds in bonds we
think have high potential to provide above-market returns.
<PAGE>
<TABLE>
NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC.
NPP
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends, plus a
supplemental dividend in August.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0900
6/94 $0.0900
7/94 $0.0900
8/94 $0.0900 0.0125
9/94 $0.0900
10/94 $0.0900
11/94 $0.0900
12/94 $0.0900
1/95 $0.0900
2/95 $0.0900
3/95 $0.0900
4/95 $0.0900
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 7.26%
Taxable-equivalent yield 11.34%
Annual total return on NAV 7.88%
Taxable-equivalent total return 12.14%
Share price $14.875
NAV $14.94
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN MUNICIPAL ADVANTAGE FUND, INC.
NMA
Dividends of NMA have been consistently at an attractive level despite a
modest reduction in February, reflecting the effect of bond calls.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0930
6/94 $0.0930
7/94 $0.0930
8/94 $0.0930
9/94 $0.0930
10/94 $0.0930
11/94 $0.0930
12/94 $0.0930
1/95 $0.0930
2/95 $0.0900
3/95 $0.0900
4/95 $0.0900
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 7.26%
Taxable-equivalent yield 11.34%
Annual total return on NAV 7.87%
Taxable-equivalent total return 12.12%
Share price $14.875
NAV $15.19
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NMO
Dividends of NMO have been consistently at an attractive level despite a
modest reduction in February, reflecting the effect of bond calls.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0930
6/94 $0.0930
7/94 $0.0930
8/94 $0.0930
9/94 $0.0930
10/94 $0.0930
11/94 $0.0930
12/94 $0.0930
1/95 $0.0930
2/95 $0.0900
3/95 $0.0900
4/95 $0.0900
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 7.20%
Taxable-equivalent yield 11.25%
Annual total return on NAV 7.95%
Taxable-equivalent total return 12.16%
Share price $15.00
NAV $15.34
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
Amendment to Dividend Reinvestment Plan
Effective October 1, 1995, your Fund's Dividend Reinvestment Plan will be
amended in order to enhance the ability of the Plan Agent to obtain the best
execution when making open-market purchases of Fund shares in connection with
the Plan. As of the effective date, the Plan Agent, United States Trust
Company of New York, may make Plan purchases in advance of the payment date of
the applicable Fund distribution, provided that settlement for such purchases
shall occur no earlier than the payment date for such distribution.
<PAGE>
Getting to know your fund
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, April 30, 1995) divided by its closing price per share on
that date.
Taxable equivalent yield
The return an investor subject to a given federal and state income tax rate
would need to obtain from a fully taxable investment to equal the fund's
stated annualized yield on share price. In this report, this tax rate is
assumed to be 36% for shareholders, based on incomes of $117,950-$256,500 for
investors filing singly, $143,600-$256,500 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by its total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Leverage
A fund structure that enhances the income produced for common shareholders by
a long-term municipal bond fund through the issuance of short-term preferred
shares. Preferred shareholders receive short-term tax-free income, while the
proceeds can be used to purchase additional long-term bonds, thus increasing
the portfolio's income for common shareholders.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as are deemed advisable. No
shares were repurchased during the 6-months ended April 30, 1995. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC. (NPP)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.3%
$ 3,785,000 Alabama Housing Finance Authority, Single Family
Mortgage (GNMA), 8.000%, 10/01/20 10/98 at 102 AAA $ 4,035,340
7,880,000 Alabama Special Care Facilities Finance Authority
(Daughters of Charity-Providence Hospital),
9.875%, 6/01/05 11/95 at 102 Aa 8,073,848
3,700,000 Alabama Water Pollution Control Authority,
6.750%, 8/15/17 8/05 at 100 Aaa 3,936,763
ALASKA - 0.7%
2,190,000 Alaska Housing Finance Corporation, Collateralized
Home Mortgage, 8.375%, 12/01/16 12/96 at 103 Aaa 2,310,954
1,735,000 Alaska Housing Finance Corporation, Insured
Mortgage Program, 7.800%, 12/01/30 12/00 at 102 Aa 1,809,275
4,990,000 Alaska Housing Finance Corporation, Collateralized
Veterans Mortgage Program, 7.450%, 12/01/29 6/00 at 102 Aaa 5,232,414
ARIZONA - 0.5%
5,860,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 BBB 6,241,369
ARKANSAS - 2.1%
Arkansas Development Finance Authority, Single Family
Mortgage (GNMA), Alternative Minimum Tax:
22,075,000 8.400%, 8/01/20 8/98 at 102 AAA 23,559,765
3,000,000 5.800%, 6/01/25 12/03 at 102 AAA 2,720,190
CALIFORNIA - 7.7%
24,000,000 California Department of Veterans Affairs, Home
Purchase, Alternative Minimum Tax,
8.300%, 8/01/19 8/98 at 102 Aa 24,968,400
8,905,000 California Health Facilities Financing Authority
(Daughters of Charity-O'Connor Hospital),
9.125%, 3/01/06 3/96 at 102 Aa 9,398,248
10,000,000 California Health Facilities Financing Authority
(Catholic Healthcare West), 7.000%, 7/01/20
(Pre-refunded to 7/01/99) 7/99 at 102 Aaa 10,954,600
22,795,000 Los Angeles Department of Water and Power,
4.750%, 11/15/19 11/03 at 102 AA 18,385,079
Palmdale Community Redevelopment Agency:
20,420,000 7.150%, 2/01/10 No Opt. Call AAA 21,885,748
2,325,000 8.000%, 4/01/16 No Opt. Call Aaa 2,910,505
7,000,000 Sacramento Municipal Utility District, 4.750%, 9/01/21 9/03 at 100 Aaa 5,659,220
4,650,000 Southern California Public Power Authority (Palo
Verde Project), 5.000%, 7/01/15 7/03 at 102 AA 4,007,370
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
COLORADO - 2.8%
City and County of Denver Airport System,
Alternative Minimum Tax:
$ 6,470,000 8.750%, 11/15/23 11/01 at 102 Baa $ 7,174,648
5,000,000 7.250%, 11/15/23 11/02 at 102 Baa 5,013,350
11,870,000 8.000%, 11/15/25 11/00 at 102 Baa 12,541,842
3,595,000 8.000%, 11/15/25 11/01 at 100 Baa 3,777,195
4,720,000 7.000%, 11/15/25 11/01 at 100 Baa 4,615,122
3,000,000 City and County of Denver Airport System,
8.375%, 8/01/11 6/95 at 101 Baa 3,035,790
FLORIDA - 5.0%
12,755,000 Florida Housing Finance Agency, Home Mortgage
(GNMA), Alternative Minimum Tax,
8.300%, 6/01/20 12/98 at 103 Aaa 13,774,252
20,000,000 Orlando Utilities Commission, Water and Electric,
8.625%, 10/01/05 (Pre-refunded to 10/01/95) 10/95 at 102 Aaa 20,768,800
25,935,000 St. Petersburg Health Facilities (Allegany Health
System), 7.750%, 12/01/15 (Pre-refunded to
12/01/99) 12/99 at 102 Aaa 29,013,485
GEORGIA - 5.0%
26,575,000 Georgia Municipal Electric Authority, 8.375%, 1/01/20 1/97 at 102 A+ 28,451,433
5,000,000 Burke County Development Authority, Pollution
Control (Georgia Power Company), 5.750%, 9/01/23 9/98 at 102 A2 4,613,550
12,225,000 Fulton-DeKalb Hospital Authority (Grady Memorial),
5.500%, 1/01/20 7/03 at 102 Aaa 11,207,024
9,000,000 World Congress Center Authority (George L. Smith II
Domed Stadium Project), Alternative Minimum
Tax, 7.875%, 7/01/20 7/00 at 102 Aa2 9,672,660
10,000,000 Monroe County Development Authority, Pollution
Control (Georgia Power Company), 6.750%, 10/01/24 10/99 at 102 A2 10,191,800
ILLINOIS - 5.6%
10,600,000 Illinois Development Finance Authority (Columbus-
Cuneo-Cabrini Medical Center), 8.500%, 2/01/15 2/00 at 102 BBB+ 11,340,516
7,000,000 Illinois Development Finance Authority, Multi-Family
Housing (Town and Garden Apartments Project),
Alternative Minimum Tax, 7.800%, 3/01/06 3/02 at 102 BBB+ 7,260,890
14,020,000 Illinois Health Facilities Authority (Rush-Presbyterian-
St. Luke's Hospital), 7.400%, 10/01/20 7/96 at 102 Aa 14,475,790
Illinois Health Facilities Authority (Northwestern
Memorial Hospital):
5,380,000 7.200%, 8/15/07 (Pre-refunded to 8/15/99) 8/99 at 102 AA 5,949,903
4,620,000 7.200%, 8/15/07 8/99 at 102 AA 4,900,157
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
Chicago General Obligation:
$ 2,000,000 9.250%, 1/01/13 (Pre-refunded to 7/01/97) 7/97 at 102 A- $ 2,221,980
13,000,000 7.000%, 1/01/13 7/96 at 101 Aaa 13,410,020
5,800,000 Chicago Gas Supply (People's Gas Light and Coke
Company), Alternative Minimum Tax,
8.100%, 5/01/20 5/00 at 102 Aa3 6,486,604
5,105,000 Chicago School Finance Authority,
7.750%, 6/01/09 (Pre-refunded to 6/01/96) 6/96 at 102 Aaa 5,369,439
INDIANA - 3.2%
5,250,000 Indiana Bond Bank, 6.000%, 2/01/16 2/04 at 102 A 5,074,230
5,805,000 Indiana Office Building Commission,
8.500%, 7/01/04 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 6,360,306
5,000,000 Indianapolis Local Improvement Bond Bank,
8.500%, 2/01/18 (Pre-refunded to 2/01/98) 2/98 at 102 A+ 5,559,750
6,040,000 Evansville Hospital Authority (Daughters of
Charity), 9.875%, 11/01/05 11/95 at 102 Aa 6,314,337
5,000,000 Fort Wayne South Side School Building
Corporation, 6.125%, 1/15/12 1/04 at 102 Aaa 5,013,050
Marion County Hospital Authority (Daughters of
Charity):
5,685,000 9.875%, 11/01/05 11/95 at 102 Aa 5,943,213
1,200,000 10.125%, 11/01/15 11/95 at 102 Aa 1,256,436
5,730,000 Michigan City School Building Corporation,
6.125%, 12/15/09 12/04 at 102 Aaa 5,822,425
IOWA - 1.7%
20,560,000 Iowa Finance Authority, Single Family Mortgage
(GNMA), Alternative Minimum Tax,
8.250%, 5/01/20 11/98 at 102 Aaa 21,907,708
KANSAS - 0.1%
2,260,000 Sedgwick and Shawnee Counties, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
7.875%, 12/01/21 6/99 at 103 Aaa 2,390,786
KENTUCKY - 0.9%
10,000,000 Carroll County Pollution Control (Kentucky
Utilities Company), 7.450%, 9/15/16 9/02 at 102 Aa2 10,926,300
LOUISIANA - 2.2%
6,075,000 East Baton Rouge Mortgage Finance Authority,
Single Family Mortgage (GNMA), Alternative
Minimum Tax, 7.875%, 12/01/21 12/00 at 103 Aaa 6,429,294
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
LOUISIANA (CONTINUED)
$ 8,180,000 Jefferson Parish Home Mortgage Authority, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 7.875%, 12/01/21 12/00 at 103 Aaa $ 8,657,058
5,630,000 New Orleans Housing Development Corporation
(Curran Place Apartments), 7.700%, 8/01/23 6/03 at 100 AAA 6,020,215
6,500,000 Shreveport Water and Sewer, 5.950%, 12/01/14 12/03 at 103 Aaa 6,388,915
MAINE - 0.8%
11,000,000 Maine State Housing Authority, 5.700%, 11/15/26 2/04 at 102 AA- 9,852,480
MARYLAND - 0.5%
7,475,000 Montgomery County Housing Opportunities
Commission, 6.250%, 7/01/28 7/04 at 102 Aa 7,280,501
MASSACHUSETTS - 6.5%
Massachusetts Bay Transportation Authority:
7,375,000 7.750%, 3/01/12 (Pre-refunded to 3/01/98) 3/98 at 102 Aaa 8,070,536
14,375,000 7.875%, 3/01/21 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 16,652,288
4,000,000 Massachusetts Health and Educational Facilities
Authority (Baystate Medical Center),
7.500%, 7/01/20 (Pre-refunded to 7/01/99) 7/99 at 102 A+ 4,457,360
4,475,000 Massachusetts Housing Finance Agency, Multi-Family
Residential Development, Alternative Minimum
Tax, 7.650%, 2/01/28 8/99 at 102 Aaa 4,656,327
12,940,000 Massachusetts Housing Finance Authority, Single
Family Housing, Alternative Minimum Tax,
8.400%, 12/01/16 6/98 at 102 Aa 13,837,260
Massachusetts Municipal Wholesale Electric Company:
12,210,000 8.750%, 7/01/18 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 13,443,088
570,000 8.750%, 7/01/18 7/97 at 102 A 665,705
8,000,000 Massachusetts Water Resources Authority,
7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 8,996,000
10,065,000 Boston City Hospital (FHA-Insured Mortgage),
7.625%, 2/15/21 (Pre-refunded to 8/15/00) 8/00 at 102 Aaa 11,435,048
MICHIGAN - 0.4%
4,505,000 Grand Rapids Housing Corporation, Multi-Family
Housing, 7.375%, 7/15/41 1/04 at 104 AAA 4,702,905
MINNESOTA - 2.3%
15,340,000 Dakota County Housing and Redevelopment Authority,
Single Family Mortgage, Alternative Minimum Tax,
6.900%, 10/01/27 4/04 at 102 AAA 15,705,092
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MINNESOTA (CONTINUED)
St. Paul Housing and Redevelopment Authority,
Single Family Mortgage:
$ 2,685,000 6.400%, 3/01/21 3/05 at 102 Aaa $ 2,686,906
10,000,000 6.800%, 3/01/28 3/05 at 102 19/32 Aaa 10,502,600
MISSOURI - 1.0%
11,770,000 Missouri Housing Development Commission, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.300%, 5/01/19 5/98 at 102 AAA 12,597,902
NEBRASKA - 1.5%
17,525,000 Nebraska Investment Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
8.125%, 8/15/38 8/98 at 102 Aaa 18,484,143
NEVADA - 1.5%
Las Vegas Downtown Redevelopment Agency:
3,880,000 7.900%, 6/01/06 6/98 at 102 A- 4,239,210
8,285,000 7.900%, 6/01/09 6/98 at 102 A- 9,052,025
5,100,000 Washoe County (Washoe Medical Center),
7.600%, 6/01/19 (Pre-refunded to 6/01/99) 6/99 at 102 A 5,692,314
NEW HAMPSHIRE - 0.3%
3,070,000 New Hampshire Industrial Development Authority
(United Illuminating Company), Alternative
Minimum Tax, 8.000%, 12/01/14 12/99 at 103 Baa3 3,205,940
NEW YORK - 8.7%
25,205,000 New York State Medical Care Facilities Finance
Agency (Columbia-Presbyterian), 8.000%, 2/15/25
(Pre-refunded to 8/15/97) 8/97 at 102 Aaa 27,452,278
4,000,000 New York State Medical Care Facilities Finance
Agency (St. Luke's-Roosevelt Hospital Center),
7.375%, 2/15/19 2/00 at 102 AA 4,193,760
15,000,000 New York State Urban Development Corporation,
Correctional Facilities, 7.250%, 1/01/14
(Pre-refunded to 1/01/00) 1/00 at 102 Aaa 16,808,550
Dormitory Authority of the State of New York
(State University):
4,350,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 4,954,694
4,000,000 6.000%, 5/15/17 5/00 at 100 Baa1 3,816,680
New York City General Obligation:
4,150,000 8.500%, 8/01/08 (Pre-refunded to 8/01/97) 8/97 at 102 Aaa 4,567,822
850,000 8.500%, 8/01/08 8/97 at 102 A- 912,926
7,560,000 6.625%, 8/01/14 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 8,344,501
440,000 6.625%, 8/01/14 8/02 at 101 1/2 AAA 459,580
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 9,295,000 New York City Municipal Assistance Corporation,
7.625%, 7/01/08 7/99 at 102 AA- $ 10,313,546
11,530,000 New York City Municipal Water Finance Authority,
Water and Sewer System, 7.625%, 6/15/16
(Pre-refunded to 6/15/97) 6/97 at 101 1/2 Aaa 12,400,861
New York City Municipal Water Finance Authority:
6,500,000 7.250%, 6/15/11 (Pre-refunded to 6/15/99) 6/99 at 101 1/2 A- 7,175,025
8,350,000 8.250%, 6/15/16 (Pre-refunded to 6/15/97) 6/97 at 102 Aaa 9,123,377
NORTH CAROLINA - 3.4%
North Carolina Eastern Municipal Power Agency:
17,960,000 8.000%, 1/01/21 (Pre-refunded to 1/01/98) 1/98 at 102 Aaa 19,710,741
1,225,000 7.250%, 1/01/21 (Pre-refunded to 1/01/97) 1/97 at 102 Aaa 1,295,254
8,125,000 7.250%, 1/01/21 1/97 at 102 A- 8,447,238
North Carolina Municipal Power Agency No. 1
(Catawba):
8,250,000 7.000%, 1/01/16 1/98 at 102 A 8,509,958
5,000,000 8.500%, 1/01/17 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 5,225,950
OHIO - 1.2%
8,890,000 Ohio Housing Finance Agency, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
7.650%, 3/01/29 9/99 at 102 AAA 9,272,803
Toledo-Lucas County Port Authority, Alternative
Minimum Tax:
1,030,000 8.250%, 11/15/99 No Opt. Call N/R 1,056,450
2,030,000 8.375%, 11/15/04 11/99 at 102 N/R 2,091,956
1,350,000 8.250%, 11/15/04 11/99 at 102 N/R 1,385,451
1,115,000 8.375%, 5/15/05 5/00 at 102 N/R 1,149,175
OKLAHOMA - 1.3%
9,850,000 Oklahoma Industrial Authority Health Facilities
(Sisters of Mercy), 7.500%, 6/01/18 (Pre-refunded
to 6/01/99) 6/99 at 102 AA 10,959,800
4,475,000 Comanche County Hospital Authority,
8.050%, 7/01/16 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 5,081,318
OREGON - 0.2%
3,000,000 Springfield Hospital Facility Authority (McKenzie-
Willamette Hospital), 6.375%, 8/01/08 8/04 at 100 Baa 2,998,290
PENNSYLVANIA - 0.6%
5,390,000 Pennsylvania Higher Educational Facilities Authority
(Thomas Jefferson University), 7.750%, 11/01/15 11/00 at 102 Aa 6,183,731
1,670,000 Pennsylvania Housing Finance Agency, Alternative
Minimum Tax, 8.150%, 4/01/24 4/00 at 102 AA 1,749,442
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
RHODE ISLAND - 0.8%
$ 10,000,000 Rhode Island Housing and Mortgage Finance
Corporation, Alternative Minimum Tax,
8.050%, 4/01/22 10/00 at 102 AA+ $ 10,627,300
SOUTH CAROLINA - 5.8%
25,365,000 South Carolina Housing Authority, Homeownership
Mortgage Purchase, Alternative Minimum Tax,
8.600%, 7/01/19 7/98 at 102 AA- 27,258,497
South Carolina Public Service Authority:
8,370,000 7.875%, 7/01/21 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 8,709,905
15,765,000 7.875%, 7/01/21 1/96 at 102 AA- 16,371,795
Piedmont Municipal Power Agency:
8,000,000 7.250%, 1/01/22 1/96 at 102 A- 8,241,600
12,935,000 8.000%, 1/01/23 (Pre-refunded to 1/01/96) 1/96 at 101 1/2 Aaa 13,426,659
SOUTH DAKOTA - 0.4%
South Dakota Health and Educational Facilities
Authority (Sioux Valley Hospital):
4,630,000 7.625%, 11/01/13 (Pre-refunded to 11/01/98) 11/98 at 102 AA- 5,116,567
370,000 7.625%, 11/01/13 11/98 at 102 AA- 403,507
TENNESSEE - 0.9%
3,400,000 Tennessee Housing Development Agency,
7.650%, 7/01/06 7/03 at 100 A1 3,589,346
7,400,000 Memphis Health Educational and Housing Facilities
Board (Riverdale Plaza Apartments), 6.350%, 7/20/28 1/03 at 103 AAA 7,308,240
TEXAS - 12.4%
Texas Veterans' General Obligation:
9,570,000 8.300%, 12/01/16 (Pre-refunded to 12/01/99) 12/99 at 100 AAA 10,918,030
6,915,000 8.300%, 12/01/16 12/95 at 102 AA 7,199,276
3,975,000 Bexar County Housing Finance Corporation,
10.875%, 3/01/10 9/95 at 102 BBB+ 4,130,462
7,500,000 Board of Regents, Texas A & M University,
8.375%, 7/01/09 (Pre-refunded to 7/01/96) 7/96 at 100 AAA 7,821,150
25,000,000 Brazos River Authority, Pollution Control (Houston
Lighting and Power Company Project),
7.625%, 5/01/19 7/99 at 102 A3 27,070,750
20,000,000 Dallas-Fort Worth International Airport (American
Airlines, Inc.), Alternative Minimum Tax,
7.500%, 11/01/25 11/00 at 102 Baa2 20,459,200
7,305,000 Fort Worth Housing Finance Corporation,
8.500%, 10/01/11 10/01 at 103 A 7,964,642
12,650,000 Grapevine Industrial Development Corporation
(American Airlines, Inc.), 9.250%, 12/01/12 12/95 at 102 Baa3 13,191,294
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS - (CONTINUED)
$ 4,250,000 Harris County Health Facilities (Texas Children's
Hospital), 7.000%, 10/01/19 10/99 at 102 Aaa $ 4,498,583
2,850,000 Hidalgo County Housing Finance Corporation,
Single Family Mortgage (GNMA and FNMA),
Alternative Minimum Tax, 6.750%, 10/01/15 4/04 at 102 Aaa 2,898,222
25,200,000 Matagorda County Navigation District No. 1, Pollution
Control (Houston Lighting and Power Company),
7.125%, 7/01/19 7/99 at 102 Aaa 27,127,800
13,740,000 McAllen Health Facilities Development Corporation
(Sisters of Mercy Health System), 7.250%, 6/01/15
(Pre-refunded to 6/01/99) 6/99 at 102 Aaa 15,170,059
9,000,000 San Antonio Electric and Gas Systems,
8.000%, 2/01/16 (Pre-refunded to 2/01/98) 2/98 at 102 Aaa 9,895,140
UTAH - 2.1%
Intermountain Power Agency:
11,660,000 7.875%, 7/01/14 7/96 at 102 AA- 12,216,998
13,500,000 7.200%, 7/01/19 7/97 at 102 AA- 14,177,295
VERMONT - 0.9%
11,000,000 Vermont Housing Finance Agency, Alternative
Minimum Tax, 7.000%, 11/01/27 11/04 at 102 A1 11,279,400
VIRGINIA - 0.9%
10,865,000 Fairfax County Water Authority, 7.250%, 1/01/27
(Pre-refunded to 1/01/00) 1/00 at 102 Aaa 12,073,187
WASHINGTON - 4.8%
Washington Public Power Supply System, Nuclear
Project No. 1:
22,305,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 24,855,353
14,690,000 7.500%, 7/01/15 7/99 at 102 AA 15,850,950
7,500,000 6.000%, 7/01/17 7/99 at 100 AA 7,154,849
10,000,000 5.700%, 7/01/17 7/03 at 102 AAA 9,309,799
4,000,000 Washington Public Power Supply System, Nuclear
Project No. 3, 5.700%, 7/01/18 7/03 at 102 AA 3,623,479
$1,182,840,000 Total Investments - (cost $1,184,238,692) - 98.0% 1,247,215,482
==============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 600,000 Gulf Coast Waste Disposal Authority, Pollution Control
==============
(Amoco Oil Company Project), Series 1992, Variable
Rate Demand Bonds, 5.000%, 10/01/17t VMIG-1 600,000
Other Assets Less Liabilities - 1.9% 25,722,175
Net Assets - 100% $1,273,537,657
==============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 63 $ 652,380,967 52%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 34 316,938,653 25
PORTFOLIO OF A+ A1 5 53,337,289 4
INVESTMENTS A, A- A, A2, A3 15 110,072,953 9
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 15 108,802,588 9
TEMPORARY Non-rated Non-rated 4 5,683,032 1
INVESTMENTS):
TOTAL 136 $1,247,215,482 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN MUNICIPAL ADVANTAGE FUND, INC. (NMA)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 0.4%
$ 3,700,000 Alaska State Housing Finance Corporation,
6.600%, 12/01/23 12/02 at 102 Aa $ 3,943,830
ARKANSAS - 0.1%
1,000,000 Pulaski County Special School District, Limited
Tax, 5.250%, 2/01/19 2/99 at 100 Aaa 911,470
CALIFORNIA - 13.7%
10,000,000 California Health Facilities Financing Authority
(Catholic Healthcare West), 7.000%, 7/01/20
(Pre-refunded to 7/01/99) 7/99 at 102 Aaa 10,954,600
4,500,000 California Health Facilities Financing Authority
(Valley Care Hospital), 7.000%, 5/01/20 5/00 at 102 A 4,551,930
23,010,000 California Public Works Board (Regents of the
University of California), 5.500%, 6/01/21 6/03 at 102 A1 20,397,905
7,535,000 Contra Costa County Home Mortgage (GNMA),
Alternative Minimum Tax, 7.750%, 5/01/22 No Opt. Call Aaa 9,406,242
Los Angeles Department of Water and Power:
11,455,000 4.750%, 11/15/19 11/03 at 102 AA 9,238,916
10,000,000 6.400%, 5/15/28 5/01 at 102 AA 10,073,300
3,975,000 Northern California Power Agency,
7.150%, 7/01/24 7/98 at 102 A- 4,076,323
14,490,000 Palm Desert Financing Authority, Tax Allocation,
6.125%, 8/01/22 8/02 at 102 Aaa 14,383,788
Palmdale Community Redevelopment Agency,
9,260,000 7.375%, 2/01/12 No Opt. Call AAA 10,229,059
10,000,000 8.000%, 3/01/16 No Opt. Call Aaa 12,484,600
9,315,000 Perris Single Family Mortgage, Alternative
Minimum Tax, 7.600%, 1/01/23 No Opt. Call Aaa 11,372,404
10,585,000 Southern California Public Power Authority,
7.375%, 7/01/21 7/96 at 102 1/2 AA 11,139,442
COLORADO - 1.1%
9,380,000 City and County of Denver Airport System,
Alternative Minimum Tax, 8.500%, 11/15/23 11/00 at 102 Baa 10,140,718
DISTRICT OF COLUMBIA - 0.7%
6,765,000 District of Columbia Housing Finance Agency
(GNMA), Single Family Mortgage, Alternative
Minimum Tax, 6.375%, 6/01/26 6/04 at 103 AAA 6,555,759
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
FLORIDA - 1.3%
$ 5,000,000 Dade County Educational Facilities Authority
(St. Thomas University), 7.650%, 1/01/14
(Pre-refunded to 1/01/00) 1/00 at 102 AA- $ 5,625,150
5,925,000 Dade County Health Facilities Authority (South
Shore Hospital), 7.600%, 8/01/24 8/00 at 102 AA 6,357,703
GEORGIA - 2.5%
Georgia Municipal Electric Authority:
11,310,000 8.125%, 1/01/17 1/98 at 102 A+ 12,283,565
6,250,000 7.875%, 1/01/18 (Pre-refunded to 1/01/96) 1/96 at 102 A+ 6,524,813
4,000,000 Douglasville-Douglas County Water and Sewer
Authority, 9.000%, 6/01/05
(Pre-refunded to 6/01/96) 6/96 at 102 Aaa 4,262,000
ILLINOIS - 8.5%
10,750,000 Illinois Development Finance Authority (Columbus-
Cuneo-Cabrini Medical Center), 8.500%, 2/01/15 2/00 at 102 BBB+ 11,500,995
11,625,000 Illinois Educational Facilities Authority (The
University of Chicago), 5.700%, 12/01/25 12/03 at 102 Aaa 10,668,379
4,210,000 Illinois Health Facilities Authority (West
Suburban Hospital), 8.000%, 8/01/02 8/97 at 102 A 4,534,465
16,000,000 Illinois Health Facilities Authority (ServantCor),
7.875%, 8/15/19 (Pre-refunded to 8/15/99) 8/99 at 102 BBB+ 17,989,440
7,905,000 Illinois Health Facilities Authority (Riverside
Medical Center), 6.750%, 11/01/15 11/99 at 100 Baa1 7,797,097
9,260,000 Illinois Housing Development Authority,
Alternative Minimum Tax, 8.100%, 2/01/22 8/98 at 102 Aa 9,826,434
3,000,000 Chicago General Obligation, 9.200%, 1/01/05
(Pre-refunded to 7/01/97) 7/97 at 102 A- 3,329,910
11,700,000 Metropolitan Pier and Exposition Authority
(McCormick Place Expansion Project),
6.500%, 6/15/27 6/03 at 102 A+ 11,759,085
2,500,000 Regional Transportation Authority, General
Obligation, 7.200%, 11/01/20 No Opt. Call Aaa 2,844,575
INDIANA - 2.4%
7,425,000 Fort Wayne International Airport Building
Corporation, 5.900%, 1/01/14 1/04 at 101 Aa 7,195,716
11,270,000 Hamilton County Hospital Authority (Daughters
of Charity), 10.125%, 11/01/15 10/95 at 102 Aa 11,775,798
3,215,000 Mooresville Consolidated School Building
Corporation, 6.400%, 7/15/15 1/04 at 102 A 3,224,484
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
IOWA - 0.9%
$ 5,000,000 Iowa Finance Authority, Single Family Mortgage
(GNMA), Alternative Minimum Tax,
6.450%, 1/01/24 1/05 at 102 Aaa $ 5,007,500
3,500,000 Marshalltown Pollution Control (Iowa Electric
Light and Power Company), 5.500%, 11/01/23 11/03 at 102 Aaa 3,174,115
LOUISIANA - 1.4%
10,000,000 Louisiana Public Facilities Authority Extended Care
(Comm-Care Corporation), 11.000%, 2/01/14 No Opt. Call BBB 12,898,000
MASSACHUSETTS - 7.5%
Massachusetts Bay Transportation Authority:
5,000,000 7.000%, 3/01/10 (Pre-refunded to 3/01/00) 3/00 at 100 Aaa 5,433,800
3,500,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00 3/00 at 102 Aaa 3,950,380
7,965,000 Massachusetts Health and Educational Facilities
Authority (Emerson Hospital), 8.000%, 7/01/18 7/00 at 102 Baa1 8,402,438
13,915,000 Massachusetts Health and Educational Facilities
Authority (Capital Asset Program),
7.300%, 10/01/18 4/00 at 102 Aaa 15,088,174
2,480,000 Massachusetts Housing Finance Agency, Alternative
Minimum Tax, 8.100%, 8/01/23 8/99 at 102 BBB+ 2,580,316
10,300,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), 9.000%, 7/01/15 7/01 at 103 N/R 11,134,815
Massachusetts Water Resources Authority:
8,770,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 9,909,223
11,535,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 12,971,108
1,000,000 Boston General Obligation, 7.375%, 2/01/10
(Pre-refunded to 2/01/00) 2/00 at 102 A 1,115,620
MICHIGAN - 1.0%
100,000 Michigan Hospital Finance Authority (Sisters of
Mercy Health Corporation), 10.500%, 7/01/14 7/95 at 101 A- 101,910
Lapeer Economic Development Corporation
(Lapeer Health Services):
2,915,000 8.250%, 2/01/04 (Pre-refunded to 2/01/00) 2/00 at 102 BBB 3,360,179
3,000,000 8.500%, 2/01/12 (Pre-refunded to 2/01/00) 2/00 at 102 BBB 3,486,810
2,000,000 8.625%, 2/01/20 (Pre-refunded to 2/01/00) 2/00 at 102 BBB 2,335,000
MINNESOTA - 2.7%
9,375,000 Minnesota Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax,
7.950%, 7/01/22 7/00 at 102 AA 9,923,250
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MINNESOTA (CONTINUED)
Minneapolis/St. Paul Housing Finance Board, Single
Family Mortgage, Alternative Minimum Tax:
$ 840,000 7.750%, 8/01/10 2/00 at 102 AAA $ 890,753
710,000 7.500%, 8/01/17 2/00 at 102 AAA 757,748
4,910,000 8.000%, 2/01/23 2/00 at 102 AAA 5,183,438
Minneapolis Community Development Agency,
Limited Tax Supported Development, Alternative
Minimum Tax:
2,130,000 8.500%, 12/01/08 12/98 at 102 BBB+ 2,386,133
3,510,000 8.750%, 12/01/17 12/98 at 102 BBB+ 3,894,626
2,590,000 8.250%, 6/01/19 12/99 at 102 BBB+ 2,765,395
MISSISSIPPI - 1.6%
5,520,000 Coahoma-Clarksdale Housing Development
Corporation, 8.000%, 8/01/24 8/03 at 100 AAA 5,939,630
2,745,000 Greenwood-Leflore Housing Development
Corporation (Jones Apartments), 7.950%, 8/01/22 6/02 at 100 A 2,855,953
1,650,000 Greenwood-Leflore Housing Development
Corporation (Ivory Apartments), 7.950%, 2/01/22 2/01 at 100 A 1,709,565
1,740,000 Greenwood-Leflore Housing Development
Corporation (McNeace Apartments),
7.950%, 8/01/22 3/02 at 100 A 1,809,269
2,700,000 Greenwood-Leflore Housing Development
Corporation (Bishop Apartments),
7.950%, 8/01/22 8/01 at 100 A 2,798,739
MISSOURI - 0.3%
2,500,000 Missouri Health and Educational Facilities
Authority (SSM Health Care), 7.750%, 6/01/16
(Pre-refunded to 6/01/98) 6/98 at 102 Aaa 2,751,050
NEW HAMPSHIRE - 1.9%
3,240,000 New Hampshire Business Finance Authority
(Pennichuck Water Works, Inc.),
6.350%, 12/01/19 12/04 at 102 Aaa 3,260,282
2,060,000 New Hampshire Business Finance Authority
(Pennichuck Water Works, Inc.), Alternative
Minimum Tax, 6.450%, 12/01/16 12/04 at 102 Aaa 2,100,973
5,115,000 New Hampshire Housing Finance Authority,
Alternative Minimum Tax, 7.950%, 7/01/22 7/00 at 102 Aa 5,414,125
7,220,000 New Hampshire Housing Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
7.900%, 7/01/22 7/99 at 102 Aa 7,529,160
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW JERSEY - 1.0%
$ 10,365,000 New Jersey Housing and Mortgage Finance Agency,
5.350%, 10/01/15 10/03 at 102 Aaa $ 9,577,260
NEW YORK - 14.2%
20,200,000 New York State Housing Finance Agency, Health
Facilities (New York City), 8.000%, 11/01/08 11/00 at 102 BBB+ 22,372,914
8,500,000 New York State Medical Care Facilities Finance
Agency (Buffalo General Hospital),
7.600%, 2/15/08 (Pre-refunded to 8/15/98) 8/98 at 102 AAA 9,378,730
20,000,000 New York State Medical Care Facilities Finance
Agency (Columbia-Presbyterian), 8.000%, 2/15/25
(Pre-refunded to 8/15/97) 8/97 at 102 Aaa 21,783,200
5,000,000 New York State Medical Care Facilities Finance
Agency (St. Luke's-Roosevelt Hospital Center),
7.450%, 2/15/29 (Pre-refunded to 2/15/00) 2/00 at 102 Aaa 5,608,800
4,505,000 Dormitory Authority of the State of New York
(United Health Services), 7.350%, 8/01/29 2/00 at 102 AAA 4,820,936
26,000,000 Dormitory Authority of the State of New York
(City University), 7.625%, 7/01/20
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 29,631,680
Dormitory Authority of the State of New York
(State University):
19,965,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 22,740,335
7,250,000 6.500%, 5/15/19 (Pre-refunded to 5/15/00) 5/00 at 100 AAA 7,756,195
8,000,000 New York City General Obligation, 9.500%, 6/01/03 No Opt. Call A- 9,659,120
NORTH DAKOTA - 0.3%
2,285,000 North Dakota Housing Finance Agency, Single
Family Mortgage, Alternative Minimum Tax,
8.375%, 7/01/19 7/98 at 103 Aa 2,398,039
OHIO - 2.4%
15,080,000 Ohio Air Quality Development Authority, Pollution
Control (Cleveland Electric Illuminating
Company), 8.000%, 12/01/13 6/02 at 103 Aaa 17,469,275
5,000,000 Ohio Water Development Authority, Pollution
Control (Ohio Edison Company),
10.625%, 7/01/15 7/95 at 103 Baa2 5,196,600
OKLAHOMA - 1.7%
1,805,000 Cleveland County Home Loan Authority, Single
Family Mortgage, 8.375%, 2/01/12 8/01 at 102 A 1,951,223
13,570,000 Tulsa Municipal Airport (AMR Corporation),
Alternative Minimum Tax, 7.600%, 12/01/30 6/01 at 102 Baa2 13,997,591
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA - 2.5%
$ 6,675,000 Pennsylvania Housing Finance Agency, Single
Family Mortgage, Alternative Minimum Tax,
8.150%, 10/01/21 10/00 at 102 AA $ 7,123,493
3,500,000 Pennsylvania Housing Finance Agency, Rental
Housing (FNMA), 5.800%, 7/01/18 7/03 at 102 Aaa 3,395,595
8,500,000 Philadelphia Water and Wastewater System,
5.000%, 6/15/16 6/03 at 100 Aaa 7,415,400
4,815,000 Venango Housing Corporation, Multi-Family
Mortgage, 8.000%, 2/01/24 12/03 at 100 AAA 5,113,434
RHODE ISLAND - 2.3%
6,875,000 Rhode Island Housing and Mortgage Finance
Corporation, 7.750%, 4/01/22 4/00 at 102 AA+ 7,280,900
4,140,000 Rhode Island Housing and Mortgage Finance
Corporation, Alternative Minimum Tax,
8.050%, 4/01/22 10/00 at 102 AA+ 4,399,702
6,000,000 Rhode Island Convention Center Authority,
5.000%, 5/15/23 5/04 at 102 Aaa 4,972,260
Providence Housing Authority, Multi-Family
Mortgage (FHA-Insured), Alternative
Minimum Tax:
435,000 7.375%, 4/01/10 4/02 at 105 AAA 464,349
1,060,000 7.400%, 4/01/20 4/02 at 105 AAA 1,124,671
3,050,000 7.500%, 10/01/32 4/02 at 105 AAA 3,235,074
SOUTH CAROLINA - 5.7%
5,000,000 South Carolina Public Service Authority,
5.000%, 1/01/25 1/03 at 102 Aaa 4,231,450
3,500,000 Charleston County Resource Recovery
(Foster Wheeler), Alternative Minimum Tax,
9.000%, 1/01/05 1/98 at 103 A 3,910,795
Piedmont Municipal Power Agency:
6,250,000 7.000%, 1/01/19 1/98 at 102 Aaa 6,519,000
17,890,000 7.250%, 1/01/22 1/96 at 102 A- 18,430,278
19,675,000 8.000%, 1/01/23 (Pre-refunded to 1/01/96) 1/96 at 101 1/2 Aaa 20,422,847
TEXAS - 7.4%
Brazos River Authority, Pollution Control
(Texas Utilities Electric Company), Alternative
Minimum Tax:
5,450,000 9.875%, 10/01/17 10/97 at 102 Baa2 6,082,200
5,840,000 8.250%, 1/01/19 1/99 at 102 Baa2 6,348,722
8,000,000 8.125%, 2/01/20 2/00 at 102 Baa2 8,662,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 4,925,000 Cameron County Housing Finance Corporation,
Single Family Mortgage, 6.750%, 3/01/26 9/02 at 103 AAA $ 5,001,239
3,000,000 El Paso Housing Finance Corporation, Multi-Family
Housing (GNMA), 7.500%, 3/20/25 1/00 at 103 AAA 3,165,660
7,980,000 Grapevine Industrial Development Corporation
(AMR Corporation), 9.250%, 12/01/12 12/95 at 102 Baa3 8,321,464
6,000,000 Harris County Health Facilities Development
Corporation (Texas Medical Center),
7.375%, 5/15/20 5/00 at 102 Aaa 6,467,940
6,000,000 Harris County Hospital District, 8.500%, 4/01/15
(Pre-refunded to 4/01/96) 4/96 at 102 Aaa 6,325,320
Houston Water Conveyance System Contract,
Certificates of Participation:
5,490,000 6.800%, 12/15/10 No Opt. Call Aaa 6,024,891
2,000,000 6.800%, 12/15/11 No Opt. Call Aaa 2,191,120
7,500,000 Sabine River Authority, Pollution Control
(Texas Utilities Electric Company), Alternative
Minimum Tax, 8.125%, 2/01/20 2/00 at 102 Baa2 8,040,900
Wood Glen Housing Finance Corporation:
1,775,000 7.625%, 1/01/10 1/00 at 103 Aaa 1,891,724
1,250,000 7.650%, 7/01/23 1/00 at 103 Aaa 1,322,475
UTAH - 2.4%
1,350,000 Utah Housing Finance Agency, Alternative
Minimum Tax, 8,250%, 7/01/21 7/99 at 102 AA 1,411,250
Intermountain Power Agency:
3,215,000 10.375%, 7/01/16 7/95 at 102 1/2 AA 3,324,406
11,020,000 7.500%, 7/01/16 7/96 at 102 AA 11,466,530
6,465,000 7.200%, 7/01/19 7/97 at 102 AA- 6,789,349
WASHINGTON - 7.2%
7,195,000 Washington General Obligation, 6.000%, 3/01/16 3/01 at 100 AA 7,076,714
Washington Public Power Supply System, Nuclear
Project No. 1:
3,000,000 5.750%, 7/01/13 7/03 at 102 AA 2,785,860
5,520,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 6,151,157
3,595,000 7.500%, 7/01/15 7/99 at 102 AA 3,879,113
11,135,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 AAA 12,333,794
21,700,000 Washington Public Power Supply System, Nuclear
Project No. 2, 7.375%, 7/01/12 (Pre-refunded
to 7/01/00) 7/00 at 102 AAA 24,368,882
5,615,000 Washington Public Power Supply System, Nuclear
Project No. 3, 7.250%, 7/01/16 (Pre-refunded to
7/01/99) 7/99 at 102 Aaa 6,212,435
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 5,000,000 Snohomish County School District No. 2,
General Obligation, 6.200%, 12/01/12 12/03 at 102 Aaa $ 5,026,600
WEST VIRGINIA - 0.6%
4,250,000 West Virginia Housing Development Fund,
Alternative Minimum Tax, 7.950%, 5/01/17 11/00 at 102 Aa1 4,520,130
720,000 West Virginia Housing Development Fund,
Homeownership Mortgage, 9.100%, 1/01/14 7/95 at 102 Aaa 734,255
WISCONSIN - 1.7%
11,835,000 Wisconsin Health and Educational Facilities
Authority (Franciscan Health System),
8.500%, 3/01/20 3/00 at 102 Baa1 13,007,848
3,000,000 Milwaukee Housing Authority, Multi-Family
Housing, 7.500%, 12/01/28 6/00 at 102 Aa 3,138,600
WYOMING - 0.4%
3,000,000 Uinta County School District No. 1, General
Obligation, 8.625%, 6/01/08 (Pre-refunded
to 6/01/97) 6/97 at 103 N/R 3,313,410
$863,565,000 Total Investments - (cost $865,441,393) - 97.8% 918,046,506
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 1,000,000 California Statewide Community Development
Authority, Certificates of Participation,
Series 1993, Variable Rate Demand Bonds,
4.850%, 12/01/18t A-1+ 1,000,000
2,000,000 Massachusetts Industrial Finance Agency
(New England Deaconess Association Project),
Series 1993B, Variable Rate Demand Bonds,
4.300%, 4/01/23t VMIG-1 2,000,000
$ 3,000,000 Total Temporary Investments - 0.3% 3,000,000
============
Other Assets Less Liabilities - 1.9% 17,270,533
Net Assets - 100% $938,317,039
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 58 $443,369,033 48%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 25 163,636,910 18
PORTFOLIO OF A+ A1 4 50,965,368 5
INVESTMENTS A, A- A, A2, A3 15 64,059,584 7
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 22 181,567,386 20
TEMPORARY Non-rated Non-rated 2 14,448,225 2
INVESTMENTS):
TOTAL 126 $918,046,506 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security.
The rate disclosed is that currently in effect. This rate changes
periodically based on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC. (NMO)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 0.4%
$ 3,980,000 Alaska Housing Finance Corporation, Insured
Mortgage Program, 7.800%, 12/01/30 12/00 at 102 Aa $ 4,150,384
ARKANSAS - 0.3%
2,755,000 Arkansas Development Finance Authority, Single
Family Mortgage, 8.000%, 8/15/11 8/01 at 103 AA 2,980,304
CALIFORNIA - 11.4%
California Department of Water Resources (Central
Valley Project):
4,000,000 5.500%, 12/01/22 6/01 at 100 AA 3,622,120
3,000,000 4.875%, 12/01/27 12/03 at 101 AA 2,414,610
6,500,000 California Health Facilities Financing Authority
(Episcopal Homes Foundation), 7.850%, 7/01/15 7/95 at 102 A 6,649,175
4,000,000 California Health Facilities Financing Authority
(Valley Care Hospital), 7.000%, 5/01/20 5/00 at 102 A 4,046,160
6,000,000 California Health Facilities Financing Authority
(Kaiser Permanente), 5.600%, 5/01/33 5/03 at 102 Aa2 5,412,180
7,000,000 California State Public Works Board (California
State Prison-Madera County), 5.500%, 6/01/15 No Opt. Call A- 6,322,050
8,745,000 Bell Community Redevelopment Agency, Tax
Allocation, 6.350%, 11/01/23 11/03 at 102 Aaa 8,804,816
5,000,000 Los Angeles Community Redevelopment Agency,
Tax Allocation (Central Business District),
6.750%, 7/01/10 7/96 at 102 A- 5,124,900
Los Angeles Department of Water and Power,
Electric Plant:
6,000,000 4.750%, 10/15/20 No Opt. Call AA 4,821,420
2,850,000 6.000%, 2/01/28 2/02 at 102 AA 2,774,048
Los Angeles Department of Water and Power:
10,000,000 6.400%, 5/15/28 5/01 at 102 AA 10,073,300
6,815,000 5.400%, 11/15/31 11/03 at 102 AA 5,942,067
12,080,000 5.375%, 2/15/34 2/04 at 102 AA 10,495,950
5,000,000 Los Angeles County Sanitation Districts Financing
Authority, 5.000%, 10/01/23 10/03 at 100 AA 4,173,600
5,870,000 Sacramento Municipal Utility District,
4.750%, 9/01/21 9/03 at 100 Aaa 4,745,660
13,900,000 San Diego (San Diego Gas and Electric Company),
5.900%, 9/01/18 9/03 at 102 Aaa 13,470,907
8,000,000 Stanislaus County Certificates of Participation,
7.550%, 4/01/18 4/96 at 101 A- 8,237,600
University of California:
2,000,000 5.000%, 9/01/11 9/03 at 102 Aaa 1,783,780
4,750,000 5.000%, 9/01/23 9/03 at 102 Aaa 3,998,693
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
COLORADO - 6.8%
$ 4,585,000 Colorado Housing Finance Authority, Single Family
Program, Alternative Minimum Tax, 7.650%, 8/01/22 8/00 at 102 AA $ 4,748,960
City and County of Denver Airport System,
Alternative Minimum Tax:
1,200,000 5.950%, 11/15/98 No Opt. Call Baa 1,191,648
2,260,000 8.200%, 11/15/01 11/00 at 102 Baa 2,458,066
4,700,000 7.400%, 11/15/01 No Opt. Call Baa 4,879,399
5,000,000 7.750%, 11/15/21 11/01 at 102 Baa 5,231,350
7,625,000 6.750%, 11/15/22 11/02 at 102 Baa 7,466,019
3,500,000 7.250%, 11/15/23 11/02 at 102 Baa 3,509,345
12,250,000 8.000%, 11/15/25 11/01 at 100 Baa 12,870,830
5,000,000 7.000%, 11/15/25 11/01 at 100 Baa 4,888,900
City and County of Denver Airport System:
8,900,000 8.875%, 8/01/15 8/95 at 101 Baa 9,053,703
10,480,000 9.250%, 8/01/20 6/95 at 102 Baa 10,715,486
DISTRICT OF COLUMBIA - 0.2%
2,130,000 District of Columbia Housing Finance Agency,
Alternative Minimum Tax, 8.100%, 12/01/23 12/00 at 102 AAA 2,259,525
FLORIDA - 3.5%
Orange County Housing Finance Authority:
6,345,000 7.500%, 7/01/10 7/00 at 103 Aaa 6,840,418
11,035,000 7.600%, 1/01/24 7/00 at 103 Aaa 11,700,631
Palm Beach County Health Facilities Authority (JFK
Medical Center):
6,375,000 8.875%, 12/01/18 (Pre-refunded to 12/01/98) 12/98 at 102 BBB 7,327,489
4,575,000 8.875%, 12/01/18 12/98 at 102 BBB 5,011,913
3,795,000 Palm Beach County, Housing Finance Agency,
7.600%, 3/01/23 9/00 at 103 Aaa 4,028,696
GEORGIA - 3.3%
Georgia Municipal Electric Authority:
17,000,000 7.900%, 1/01/08 1/98 at 102 A+ 18,556,520
13,125,000 7.875%, 1/01/18 (Pre-refunded to 1/01/96) 1/96 at 102 A+ 13,702,106
ILLINOIS - 6.3%
15,000,000 Illinois Development Finance Authority (Columbus-
Cuneo-Cabrini Medical Center), 8.500%, 2/01/15 2/00 at 102 BBB+ 16,047,900
5,210,000 Illinois Housing Development Authority (Garden
House of River Oaks West), 6.875%, 1/01/20 1/03 at 102 A 5,310,553
2,265,000 Illinois Housing Development Authority, Elderly
Housing (Village Center Development),
6.600%, 3/01/07 3/03 at 102 A 2,332,429
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 21,700,000 Chicago O'Hare International Airport, Alternative
Minimum Tax, 7.500%, 1/01/17 1/00 at 102 A $ 23,080,337
6,300,000 Chicago O'Hare International Airport, (AMR
Corporation), Alternative Minimum Tax,
7.875%, 11/01/25 11/00 at 102 Baa2 6,580,287
4,000,000 Community College District No. 508 (Cook County),
8.750%, 1/01/06 No Opt. Call Aaa 5,031,200
3,325,000 Peoria, Pekin and Waukegan (GNMA), Alternative
Minimum Tax, 7.875%, 8/01/22 8/00 at 103 AAA 3,540,992
INDIANA - 4.4%
13,500,000 Indiana Health Facilities Financing Authority
(Bartholomew County Hospital), 7.750%, 8/15/20 8/00 at 103 AAA 15,428,880
3,710,000 Indiana Housing Finance Authority, Alternative
Minimum Tax, 7.800%, 1/01/22 7/00 at 102 Aaa 3,906,593
10,000,000 Indiana Office Building Commission, 7.250%, 7/01/12
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 11,188,100
Indianapolis Local Public Improvement Bond Bank:
3,750,000 6.750%, 2/01/20 2/03 at 102 A+ 3,850,500
3,500,000 6.500%, 2/01/22 2/98 at 100 A+ 3,524,045
5,000,000 Columbus Multi-School Building Corporation,
7.600%, 1/15/14 (Pre-refunded to 1/15/01) 1/01 at 102 A+ 5,695,300
KENTUCKY - 0.3%
2,745,000 Kentucky Housing Corporation, Alternative
Minimum Tax, 8.100%, 1/01/22 7/00 at 102 AAA 2,922,080
LOUISIANA - 0.6%
5,410,000 East Baton Rouge Mortgage Finance Authority,
Alternative Minimum Tax, 7.875%, 8/01/23 8/00 at 102 Aaa 5,734,762
MARYLAND - 0.5%
4,985,000 Maryland Community Development Administration,
Alternative Minimum Tax, 7.700%, 4/01/15 4/00 at 102 Aa 5,284,399
MASSACHUSETTS - 7.5%
Massachusetts Bay Transportation Authority:
7,500,000 7.000%, 3/01/10 (Pre-refunded to 3/01/00) 3/00 at 100 Aaa 8,150,700
10,800,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 12,189,744
Massachusetts Health and Educational Facilities
Authority (Daughters of Charity):
4,200,000 7.500%, 7/01/05 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 4,742,304
10,800,000 7.750%, 7/01/14 7/00 at 102 Aa 12,316,320
8,360,000 Massachusetts Health and Educational Facilities
Authority (Goddard Memorial Hospital),
9.000%, 7/01/15 7/00 at 102 BBB 9,191,151
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$ 3,385,000 Massachusetts Housing Finance Agency, Residential
Housing, Alternative Minimum Tax, 8.200%, 8/01/27 8/99 at 102 BBB+ $ 3,540,439
895,000 Massachusetts Housing Finance Agency, Alternative
Minimum Tax, 8.100%, 8/01/23 8/99 at 102 BBB+ 931,203
Massachusetts Water Resources Authority:
8,500,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 9,604,150
6,615,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 7,438,568
5,000,000 7.000%, 4/01/18 4/00 at 102 A 5,519,150
MICHIGAN - 2.3%
8,500,000 Michigan Hospital Finance Authority (Bay Medical
Center), 8.250%, 7/01/12 7/00 at 102 Baa1 9,015,355
4,500,000 Michigan Hospital Finance Authority (Detroit
Medical Center), 7.500%, 8/15/11 8/01 at 102 A- 4,813,155
8,500,000 Michigan Strategic Fund (Waste Management, Inc.),
Alternative Minimum Tax, 6.625%, 12/01/12 12/02 at 102 A1 8,610,500
MINNESOTA - 2.2%
4,040,000 Minnesota Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax, 7.950%, 7/01/22 7/00 at 102 AA 4,276,259
2,930,000 Minnesota Housing Finance Agency, Alternative
Minimum Tax, 7.700%, 7/01/14 7/00 at 102 AA 3,094,344
3,575,000 Dakota, Washington and Stearns Counties, Single
Family Residential Mortgage, Alternative
Minimum Tax, 7.850%, 12/01/30 12/00 at 102 AAA 3,778,990
8,845,000 Minneapolis St. Paul Housing and Redevelopment
Authority (Health One Obligated Group),
8.000%, 8/15/19 (Pre-refunded to 8/15/00) 8/00 at 102 Aaa 10,210,668
MISSISSIPPI - 0.2%
1,620,000 Mississippi Home Corporation, 9.250%, 3/01/12 9/00 at 103 Aaa 1,753,763
NEVADA - 1.0%
Nevada Housing Division, Alternative Minimum Tax:
2,725,000 7.850%, 10/01/10 4/00 at 102 AA 2,838,060
2,040,000 7.900%, 4/01/22 4/00 at 102 AA 2,119,988
4,500,000 Washoe County Gas and Water Facilities (Sierra
Pacific Power Company), 6.300%, 12/01/14 7/02 at 102 Aaa 4,535,460
NEW JERSEY - 0.7%
4,750,000 Camden County Pollution Control Financing Authority
(Solid Waste Disposal and Resource Recovery System),
Alternative Minimum Tax, 7.125%, 12/01/01 No Opt. Call BBB+ 4,623,413
2,000,000 Camden County Pollution Control Finance Authority
(Solid Waste Disposal and Resource Recovery System),
7.250%, 12/01/10 12/01 at 102 BBB+ 1,986,900
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW MEXICO - 1.2%
$ 11,040,000 New Mexico Mortgage Finance Authority,
7.800%, 9/01/17 9/00 at 102 AA $ 11,449,142
NEW YORK - 18.8%
3,620,000 New York State Medical Care Facilities Finance Agency
(Columbia Presbyterian Hospital), 7.250%, 2/15/12 8/97 at 102 AA 3,830,539
4,500,000 New York State Energy Research and Development
Authority, Gas Facilities (The Brooklyn Union Gas
Company), Alternative Minimum Tax,
5.600%, 6/01/25 7/03 at 102 Aaa 4,105,125
20,000,000 New York State Housing Finance Agency, Health
Facilities (New York City), 8.000%, 11/01/08 11/00 at 102 BBB+ 22,151,400
10,325,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home Insured
Mortgage (St. Vincent's Hospital), 8.000%, 2/15/27
(Pre-refunded to 8/15/97) 8/97 at 102 Aaa 11,236,078
9,860,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home Insured
Mortgage (Albany Medical Center), 8.000%, 2/15/28 8/98 at 102 AAA 10,896,286
7,200,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, FHA-Insured
(Buffalo General Hospital), 7.700%, 2/15/22
(Pre-refunded to 8/15/98) 8/98 at 102 AAA 7,973,064
16,520,000 New York State Medical Care Facilities Finance
Agency (Columbia-Presbyterian), 8.000%, 2/15/25
(Pre-refunded to 8/15/97) 8/97 at 102 Aaa 17,992,923
5,000,000 New York State Medical Care Facilities Finance
Agency (Brookdale Hospital Medical Center),
6.850%, 2/15/17 2/05 at 102 Baa1 4,976,900
7,650,000 New York State Thruway Authority, 6.000%, 1/01/25 1/05 at 102 Aaa 7,442,685
Dormitory Authority of the State of New York
(City University):
6,080,000 9.250%, 7/01/99 No Opt. Call Baa1 6,949,805
15,000,000 8.750%, 7/01/03 No Opt. Call Baa1 17,792,550
Dormitory Authority of the State of New York
(State University):
9,010,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 10,070,297
10,000,000 7.125%, 5/15/17 (Pre-refunded to 5/15/99) 5/99 at 102 AAA 10,995,200
10,000,000 New York City Municipal Assistance Corporation,
6.875%, 7/01/07 7/97 at 102 AA- 10,566,900
6,750,000 New York City General Obligation, 6.625%, 2/15/25 2/05 at 102 A- 6,632,888
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
New York City Municipal Water Finance Authority,
Water and Sewer System:
$ 4,050,000 5.750%, 6/15/18 6/02 at 101 1/2 Aaa $ 3,904,281
12,875,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) 6/00 at 101 1/2 Aaa 14,542,570
7,585,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) 6/00 at 100 A- 7,965,919
5,915,000 6.000%, 6/15/20 6/00 at 100 A- 5,684,847
NORTH CAROLINA - 1.5%
5,695,000 North Carolina Housing Finance Agency, Alternative
Minimum Tax, 7.850%, 9/01/28 3/00 at 102 Aa 6,001,106
8,900,000 North Carolina Municipal Power Agency No. 1
(Catawba), 8.500%, 1/01/17 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 9,302,191
OKLAHOMA - 2.3%
3,815,000 Bryan County Economic Development Authority,
Single Family Mortgage, 8.600%, 7/01/10 7/00 at 102 Baa1 4,053,819
Tulsa Municipal Airport Trust (AMR Corporation):
5,160,000 9.500%, 6/01/20 12/95 at 102 Baa2 5,408,454
8,000,000 7.375%, 12/01/20 12/00 at 102 Baa2 8,145,360
5,000,000 Tulsa Municipal Airport (AMR Corporation),
Alternative Minimum Tax, 7.600%, 12/01/30 6/01 at 102 Baa2 5,157,550
OREGON - 0.5%
3,480,000 Deschutes County Administrative School District
No. 1, General Obligation, 5.200%, 12/01/13 12/03 at 101 A1 3,116,549
2,500,000 Northern Wasco County, People's Utility District
(Bonneville Power Administration),
5.200%, 12/01/24 12/03 at 102 AA 2,190,225
PENNSYLVANIA - 1.0%
5,390,000 Pennsylvania Housing Finance Agency, Alternative
Minimum Tax, 8.150%, 4/01/24 4/00 at 102 AA 5,646,402
3,985,000 Allegheny County Residential Finance Authority,
Alternative Minimum Tax, 7.950%, 6/01/23 6/00 at 102 Aaa 4,207,004
RHODE ISLAND - 1.9%
5,000,000 Rhode Island Health and Educational Building
Corporation (Johnson and Wales University),
8.375%, 4/01/20 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 5,816,250
11,940,000 Rhode Island Housing and Mortgage Finance
Corporation, 7.750%, 4/01/22 4/00 at 102 AA+ 12,644,938
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
SOUTH CAROLINA - 1.1%
$ 3,640,000 South Carolina Jobs-Economic Development
Authority (Carolinas Hospital System),
7.550%, 9/01/22 (Pre-refunded to 9/01/02) 9/02 at 102 Baa1 $ 4,231,828
2,375,000 Oconee County Pollution Control (Duke Power
Company), 5.800%, 4/01/14 4/03 at 102 Aa2 2,282,636
4,170,000 Piedmont Municipal Power Agency, 7.000%, 1/01/25)
(Pre-refunded to 1/01/96) 1/96 at 100 Aaa 4,235,094
TENNESSEE - 0.4%
4,030,000 Tennessee Housing Development Agency, Alternative
Minimum Tax, 7.950%, 7/01/22 7/00 at 103 A1 4,231,419
TEXAS - 7.9%
4,948,276 Texas General Services Commission, 7.500%, 9/01/22 9/95 at 102 1/2 A 5,134,578
2,455,000 Texas Housing Agency, 8.125%, 9/01/06 3/96 at 102 Aa 2,558,257
6,000,000 Alliance Airport Authority (AMR Corporation),
Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 6,138,360
Arlington Independent School District,
General Obligation:
12,650,000 0.000%, 2/15/12 2/05 at 67 5/16 Aaa 4,347,932
12,640,000 0.000%, 2/15/13 2/05 at 62 29/32 Aaa 4,060,474
7,060,000 Austin Combined Utility System, 7.750%, 11/15/12
(Pre-refunded to 5/15/96) 5/96 at 102 Aaa 7,423,661
20,500,000 Dallas-Fort Worth International Airport (AMR
Corporation), Alternative Minimum Tax,
7.500%, 11/01/25 11/00 at 102 Baa2 20,970,680
4,845,000 El Paso Housing Finance Corporation, Single Family
Mortgage, 8.750%, 10/01/11 4/01 at 103 A 5,324,364
4,000,000 Houston Sewer System, 8.125%, 12/01/17
(Pre-refunded to 12/01/97) 12/97 at 102 Aaa 4,402,320
15,130,000 Lubbock Health Facilities Development Corporation
(Methodist Hospital), 7.250%, 12/01/19
(Pre-refunded to 12/01/00) 12/00 at 102 Aaa 17,033,051
285,000 Southeast Texas Housing Finance Corporation,
Alternative Minimum Tax, 8.125%, 6/01/14 6/00 at 102 AAA 300,587
UTAH - 0.4%
3,900,000 Intermountain Power Agency, 7.750%, 7/01/17
(Pre-refunded to 7/01/96) 7/96 at 102 Aaa 4,111,107
VIRGINIA - 1.2%
4,000,000 Virginia Housing Development Authority,
Alternative Minimum Tax, 6.550%, 1/01/27 1/02 at 102 AA 3,957,360
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
VIRGINIA (CONTINUED)
$ 2,000,000 Virginia Housing Development Authority,
7.050%, 5/01/18 5/02 at 102 AA $ 2,086,540
5,230,000 Henrico County Industrial Development
Authority (Bon Secours Health System),
7.500%, 9/01/07 8/00 at 102 A1 5,684,905
WASHINGTON - 6.9%
Washington Public Power Supply System,
Nuclear Project No. 1:
1,080,000 14.375%, 7/01/01 No Opt. Call Aaa 1,587,341
5,430,000 7.600%, 7/01/05 7/00 at 102 AA 5,906,102
3,030,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 3,376,450
3,225,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 AAA 3,572,204
3,030,000 5.375%, 7/01/15 7/03 at 102 AA 2,652,614
9,775,000 6.875%, 7/01/17 7/01 at 102 AA 10,109,696
Washington Public Power Supply System,
Nuclear Project No. 2:
6,835,000 7.625%, 7/01/08 7/00 at 102 AA 7,749,386
13,240,000 7.375%, 7/01/12 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 14,868,388
Washington Public Power Supply System,
Nuclear Project No. 3:
3,650,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 AAA 4,042,959
8,000,000 5.375%, 7/01/15 7/03 at 102 AA 7,003,600
3,000,000 Seattle Metropolitan Municipality Sewer System,
5.500%, 1/01/33 1/03 at 102 Aaa 2,655,540
4,335,000 Tacoma Department of Public Utilities, Light
Division, 9.375%, 1/01/15 (Pre-refunded to
1/01/96) 1/96 at 102 A+ 4,569,567
WYOMING - 0.3%
3,240,000 Wyoming Community Development Authority,
Alternative Minimum Tax, 8.000%, 6/01/21 5/00 at 103 AA 3,378,379
PUERTO RICO - 0.8%
Puerto Rico Highway and Transportation
Authority:
6,050,000 5.500%, 7/01/19 7/03 at 101 1/2 A 5,487,349
3,000,000 5.500%, 7/01/22 7/03 at 101 1/2 A 2,508,989
$941,728,276 Total Investments - (cost $907,682,916) - 98.1% 968,056,633
============
Other Assets Less Liabilities - 1.9% 18,482,577
Net Assets - 100% $986,539,210
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 52 $362,291,142 38%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 35 191,552,135 20
PORTFOLIO OF A+ A1 10 71,541,411 7
INVESTMENTS: A, A- A, A2, A3 17 110,174,443 11
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 31 232,497,502 24
TOTAL 145 $968,056,633 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $1,247,215,482 $918,046,506 $968,056,633
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 600,000 3,000,000 --
Cash 495,944 1,011,611 1,807,130
Receivables:
Interest 28,727,621 20,532,029 21,005,115
Investments sold 2,855,906 306,075 421,192
Prepaid Preferred shares auction fees (note 1) 542,574 193,695 412,761
Other assets 85,242 51,170 64,108
-------------- ------------ ------------
Total assets 1,280,522,769 943,141,086 991,766,939
-------------- ------------ ------------
LIABILITIES
Accrued expenses:
Management fees (note 6) 649,234 483,318 507,799
Other 317,295 186,636 186,957
Preferred share dividends payable 757,505 372,161 504,387
Common share dividends payable 5,261,078 3,781,932 4,028,586
-------------- ------------ ------------
Total liabilities 6,985,112 4,824,047 5,227,729
-------------- ------------ ------------
Net assets (note 7) $1,273,537,657 $938,317,039 $986,539,210
============== ============ ============
Preferred shares, at liquidation value $ 400,000,000 $300,000,000 $300,000,000
============== ============ ============
Preferred shares outstanding 16,000 12,000 12,000
============== ============ ============
Common shares outstanding 58,456,422 42,021,469 44,762,071
============== ============ ============
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 14.94 $ 15.19 $ 15.34
============== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1995
(Unaudited)
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $43,588,904 $31,647,544 $33,523,084
----------- ----------- -----------
Expenses:
Management fees (note 6) 3,836,416 2,846,707 2,987,470
Preferred shares--auction fees 537,215 387,416 347,124
Preferred shares--dividend disbursing agent fees 19,836 24,795 17,356
Shareholders' servicing agent fees and expenses 143,512 83,465 90,255
Custodian's fees and expenses 70,660 56,726 50,498
Directors' fees and expenses (note 6) 4,764 3,284 4,974
Professional fees 22,629 23,967 10,759
Shareholders' reports--printing and mailing expenses 100,006 95,880 92,533
Stock exchange listing fees 25,345 12,833 12,214
Investor relations expense 25,335 19,436 24,542
Other expenses 32,174 22,300 31,520
----------- ----------- -----------
Total expenses 4,817,892 3,576,809 3,669,245
----------- ----------- -----------
Net investment income 38,771,012 28,070,735 29,853,839
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment
transactions (note 3) (1,180,061) 304,820 443,310
Net change in unrealized appreciation or depreciation
of investments 33,966,592 25,609,054 29,489,996
----------- ----------- -----------
Net gain from investments 32,786,531 25,913,874 29,933,306
----------- ----------- -----------
Net increase in net assets from operations $71,557,543 $53,984,609 $59,787,145
=========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NPP NMA
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 38,771,012 $ 77,129,687 $ 28,070,735 $ 55,902,575
Net realized gain (loss) from investment transactions (1,180,061) 727,850 304,820 (501,699)
Net change in unrealized appreciation or depreciation
of investments 33,966,592 (90,005,161) 25,609,054 (73,737,637)
-------------- -------------- ------------ ------------
Net increase (decrease) in net assets from operations 71,557,543 (12,147,624) 53,984,609 (18,336,761)
-------------- -------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From net investment income:
Common shareholders (31,543,414) (64,153,906) (23,069,793) (47,153,320)
Preferred shareholders (8,069,498) (14,171,663) (5,952,360) (9,391,237)
From net realized gains from investment transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
-------------- -------------- ------------ ------------
Decrease in net assets from distributions
to shareholders (39,612,912) (78,325,569) (29,022,153) (56,544,557)
-------------- -------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions 956,162 5,959,663 -- 4,679,057
-------------- -------------- ------------ ------------
Net increase in net assets derived from capital
share transactions 956,162 5,959,663 -- 4,679,057
-------------- -------------- ------------ ------------
Net increase (decrease) in net assets 32,900,793 (84,513,530) 24,962,456 (70,202,261)
Net assets at beginning of period 1,240,636,864 1,325,150,394 913,354,583 983,556,844
-------------- -------------- ------------ ------------
Net assets at end of period $1,273,537,657 $1,240,636,864 $938,317,039 $913,354,583
============== ============== ============ ============
Balance of undistributed net investment income
at end of period $ 3,523,891 $ 4,365,791 $ 2,408,050 $ 3,359,468
============== ============== ============ ============
See accompanying notes to financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NMO
6 months ended Year ended
4/30/95 10/31/94
<S> <C> <C>
OPERATIONS
Net investment income $ 29,853,839 $ 59,553,771
Net realized gain (loss) from investment transactions 443,310 (934,870)
Net change in unrealized appreciation or depreciation
of investments 29,489,996 (80,669,174)
------------ --------------
Net increase (decrease) in net assets from operations 59,787,145 (22,050,273)
------------ --------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From net investment income:
Common shareholders (24,574,383) (50,212,724)
Preferred shareholders (6,116,931) (10,234,676)
From net realized gains from investment transactions:
Common shareholders -- (1,718,919)
Preferred shareholders -- (261,160)
------------ --------------
Decrease in net assets from distributions
to shareholders (30,691,314) (62,427,479)
------------ --------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions -- 4,329,373
------------ --------------
Net increase in net assets derived from capital
share transactions -- 4,329,373
------------ --------------
Net increase (decrease) in net assets 29,095,831 (80,148,379)
Net assets at beginning of period 957,443,379 1,037,591,758
------------ --------------
Net assets at end of period $986,539,210 $ 957,443,379
============ ==============
Balance of undistributed net investment income
at end of period $ 2,441,421 $ 3,278,896
============ ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At April 30, 1995, the National Funds (the "Funds") covered in this report and
their corresponding New York Stock Exchange symbols are Nuveen Performance
Plus Municipal Fund, Inc. (NPP), Nuveen Municipal Advantage Fund, Inc. (NMA)
and Nuveen Municipal Market Opportunity Fund, Inc. (NMO).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at amortized cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Funds have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At April 30, 1995, there were no such purchase commitments in any
of the Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Federal Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their net
investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains as amounts in excess of $.01 per Common share.
Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal
income tax, to retain such tax-exempt status when distributed to shareholders
of the Funds.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from securities transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
<PAGE>
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of accumulated net realized
capital gains, if applicable.
<TABLE>
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every 7 days, as set by the auction agent,
except for those Series which have lengthened their current dividend periods
from 7 days to 3 and 5 years (as indicated below). The number of shares
outstanding, by Series and in total, for each of the Funds is as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Number of shares:
Series M 4,000 3,000 4,000
Series T 4,000* 3,000 4,000**
Series W 4,000 3,000 --
Series Th -- -- --
Series F 4,000* 3,000* 4,000
------ ------ ------ ------
Total 16,000 12,000 12,000
====== ====== ======
<FN>
*Three year period **Five year period
Preferred share auction fees paid in connection with lengthening the dividend
periods on the Series noted above have been capitalized and are being
amortized over the respective dividend periods.
2. FUND SHARES
Transactions in Common shares were as follows:
<CAPTION>
NPP NMA
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions 64,043 378,516 -- 291,229
====== ======= ====== =======
<CAPTION>
NMO
6 months ended Year ended
4/30/95 10/31/94
<S> <C> <C>
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- 272,855
====== =======
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
April 30, 1995, were as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $36,112,584 $26,763,774 $56,575,063
Temporary municipal investments 48,550,000 32,600,000 24,820,000
SALES AND MATURITIES
Investments in municipal securities 33,781,244 23,202,229 52,108,075
Temporary municipal investments 49,950,000 31,280,000 24,820,000
=========== =========== ===========
At April 30, 1995, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
At October 31, 1994, the Funds' last fiscal year end, the Funds had unused
capital loss carryovers available for federal income tax purposes to be
applied against future security gains, if any. If not applied, the carryovers
will expire as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Expiration year:
1997 $ 282,872 $ -- $ --
1998 516,783 -- --
1999 859,468 -- --
2000 -- -- --
2001 5,803,009 2,684,898 --
2002 -- 501,699 934,870
---------- ---------- --------
Total $7,462,132 $3,186,597 $934,870
========== ========== ========
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On May 1, 1995, the Funds declared Common share dividend distributions from
their ordinary income that were paid June 1, 1995, to shareholders of record
on May 15, 1995, as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Dividend per share $.0900 $.0900 $.0900
====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 1995, were as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Gross unrealized:
Appreciation $66,630,469 $56,081,695 $67,064,450
Depreciation (3,653,679) (3,476,582) (6,690,733)
----------- ----------- -----------
Net unrealized appreciation $62,976,790 $52,605,113 $60,373,717
=========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each
Fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors who are affiliated with the Adviser
or to their officers, all of whom receive remuneration for their services to
the Funds from the Adviser.
7. Composition of Net Assets
At April 30, 1995, net assets consisted of:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 400,000,000 $300,000,000 $300,000,000
Common shares, $.01 par value per share 584,564 420,215 447,621
Paid-in surplus 815,094,605 585,765,438 623,768,011
Balance of undistributed net investment income 3,523,891 2,408,050 2,441,421
Accumulated net realized gain (loss) from investment
transactions (8,642,193) (2,881,777) (491,560)
Net unrealized appreciation of investments 62,976,790 52,605,113 60,373,717
-------------- ------------ ------------
Net assets $1,273,537,657 $938,317,039 $986,539,210
============== ============ ============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
============== ============ ============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At April 30, 1995, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Revenue Bonds:
Housing Facilities 26% 16% 17%
Health Care Facilities 7 11 10
Electric Utilities 11 8 8
Pollution Control Facilities 10 10 9
Transportation -- 1 9
Lease Rental Facilities -- 3 5
Water / Sewer Facilities 1 3 4
Educational Facilities 3 3 3
Other 6 7 5
General Obligation Bonds 2 4 2
Escrowed Bonds 34 34 28
---- ---- ----
100% 100% 100%
==== ==== ====
Certain long-term and intermediate-term investments owned by the Funds are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S. Government agency
securities, either of which ensure the timely payment of principal and
interest in the event of default (43% for NPP, 47% for NMA, 38% for NMO). Such
insurance or escrow, however, does not guarantee the market value of the
municipal securities or the value of any of the Funds' shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
selected data for a common share outstanding throughout each period is as
follows:
<CAPTION>
Operating performance Dividends from net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income mentstt shareholders shareholderst
NPP
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $14.400 $ .664 $ .554 $ (.540) $(.138)
Year ended 10/31,
1994 15.950 1.324 (1.529) (1.102) (.243)
1993 14.930 1.359 1.074 (1.203) (.210)
5 mos. ended
10/31/92 14.960 .574 (.067) (.455) (.082)
Year ended 5/31,
1992 14.280 1.395 .608 (1.042) (.281)
1991 13.680 1.387 .628 (1.025) (.390)
6/22/89 to
5/31/90 14.050 1.120 (.274) (.788) (.265)
<CAPTION>
NMA
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 14.600 .668 .613 (.549) (.142)
Year ended 10/31,
1994 16.380 1.333 (1.764) (1.125) (.224)
1993 15.130 1.392 1.349 (1.254) (.211)
1992 14.950 1.447 .126 (1.130) (.239)
1991 13.780 1.458 1.165 (1.098) (.355)
12/19/89 to
10/31/90 14.050 1.088 (.168) (.716) (.287)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Common
share
market
To To Organiza- Net asset value
Common Preferred tion and value end end of
shareholders shareholderst offering costs of period period
NPP
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $ -- $ -- $ -- $14.940 $14.875
Year ended 10/31,
1994 -- -- -- 14.400 13.375
1993 -- -- -- 15.950 16.625
5 mos. ended
10/31/92 -- -- -- 14.930 15.000
Year ended 5/31,
1992 -- -- -- 14.960 15.000
1991 -- -- -- 14.280 14.625
6/22/89 to
5/31/90 -- -- (.163) 13.680 14.000
<CAPTION>
NMA
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 -- -- -- 15.190 14.875
Year ended 10/31,
1994 -- -- -- 14.600 13.500
1993 (.022) (.004) -- 16.380 17.000
1992 (.018) (.006) -- 15.130 15.250
1991 -- -- -- 14.950 15.750
12/19/89 to
10/31/90 -- -- (.187) 13.780 13.875
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets*** net assets*** rate
NPP
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 15.55% 7.68% $1,273,538 .78*% 6.25*% 3%
Year ended 10/31,
1994 (13.56) (2.92) 1,240,637 .79 6.01 12
1993 19.30 15.42 1,325,150 .76 6.04 4
5 mos. ended
10/31/92 2.94 2.81 1,254,800 .74* 6.16* 5
Year ended 5/31,
1992 9.94 12.50 1,252,009 .74 6.44 5
1991 12.30 12.42 1,204,809 .75 6.63 14
6/22/89 to
5/31/90 (1.45) 3.07 1,166,027 .71* 6.57* 22
<CAPTION>
NMA
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 14.53 8.01 938,317 .78* 6.16* 3
Year ended 10/31,
1994 (14.66) (4.16) 913,355 .79 5.88 10
1993 20.38 17.34 983,557 .77 6.03 13
1992 4.04 9.15 923,426 .75 6.44 7
1991 22.06 17.06 909,345 .76 6.70 5
12/19/89 to
10/31/90 (2.80) 3.25 856,867 .75* 6.65* 2
See notes on page 54.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
selected data for a common share outstanding throughout each period is as follows:
<CAPTION>
Operating performance Dividends from net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income mentstt shareholders shareholderst
NMO
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $14.690 $ .667 $ .669 $ (.549) $(.137)
Year ended 10/31,
1994 16.580 1.334 (1.825) (1.125) (.229)
1993 15.370 1.386 1.279 (1.228) (.207)
1992 15.160 1.424 .170 (1.138) (.228)
1991 13.980 1.442 1.179 (1.104) (.337)
5/21/90 to
10/31/90 14.050 .718 .034 (.450) (.184)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Common
share
market
To To Organiza- Net asset value
Common Preferred tion and value end end of
shareholders shareholderst offering costs of period period
NMO
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $ -- $ -- $ -- $15.340 $15.000
Year ended 10/31,
1994 (.039) (.006) -- 14.690 13.250
1993 (.017) (.003) -- 16.580 17.250
1992 (.014) (.004) -- 15.370 15.375
1991 -- -- -- 15.160 16.000
5/21/90 to
10/31/90 -- -- (.188) 13.980 13.750
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets*** net assets*** rate
NMO
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 17.70% 8.37% $ 986,539 .76*% 6.22*% 5%
Year ended 10/31,
1994 (17.27) (4.57) 957,443 .78 5.96 18
1993 20.86 16.53 1,037,592 .76 6.05 13
1992 3.17 9.24 975,368 .74 6.40 5
1991 25.17 16.98 958,781 .75 6.70 7
5/21/90 to
10/31/90 (5.43) 2.74 901,754 .73* 6.31* 1
<FN>
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if
any, and changes in net asset value per share.
*** Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
t The amounts shown are based on Common share equivalents.
tt Net of taxes, if applicable.
</TABLE>
<PAGE>
Our commitment to you
Photo of John Nuveen
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
For almost a century, John Nuveen & Co. Incorporated has concentrated its
resources and expertise in one area: municipal bonds. We are one of the
oldest and largest investment banking firms specializing exclusively in
municipal securities, and we strive to be the best.
Our approach to managing our shareholders' investments endures. We maintain
a sharp focus on the needs of prudent investors and their families, offer
investments of quality, and then work to make them better by seeking out
opportunity. We hold to a dedicated belief in the importance of research. And
we sustain a commitment to sound financial management through value
investing.
Our hope is that by providing quality investments we may foster opportunity
for our investors. Through careful research, attention to detail, and our
philosophy of managing for long-term value, we strive to provide our
shareholders with the attractive level of income they need to achieve their
personal goals and aspirations.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF2-JUN 95
