NUVEEN Exchange-Traded Funds
APRIL 30, 1998
Semiannual Report
DEPENDABLE, TAX-FREE INCOME TO HELP YOU KEEP MORE OF WHAT YOU EARN.
NPP
Performance Plus
NMA
Advantage
NMO
Opportunity
Photo of: People talking by pool.
<PAGE>
Highlights
As of April 30, 1998
Contents
1 Dear Shareholder
3 Portfolio Manager Roundtable
5 NPP Performance Overview
6 NMA Performance Overview
7 NMO Performance Overview
8 Portfolio of Investments
30 Statement of Net Assets
31 Statement of Operations
32 Statement of Changes in Net Assets
33 Notes to Financial Statements
37 Financial Highlights
40 Building Better Portfolios
41 Fund Information
================================================================================
Credit Quality Performance Highlights
Nuveen Performance Plus Municipal Fund, Inc. (NPP)
o Graphic: 4 stars
Four-star rating by Morningstar*
o Taxable equivalent yield of 9.06% for investors in
the 31% federal income tax bracket
o One-year taxable equivalent total return on share
price of 14.51% for investors in the 31% federal income tax bracket
PIE CHART:
AAA 66%
AA 15%
A 10%
BBB/NR 9%
Nuveen Municipal Advantage Fund, Inc. (NMA)
o Graphic: 4 stars
Four-star rating by Morningstar*
o Taxable equivalent yield of 9.09% for investors in
the 31% federal income tax bracket
o One-year taxable equivalent total return on share
price of 14.44% for investors in the 31% federal income tax bracket
PIE CHART:
AAA 64%
AA 16%
A 7%
BBB/NR 13%
Nuveen Municipal Market Opportunity Fund, Inc. (NMO)
o Graphic: 4 stars
Four-star rating by Morningstar*
o Taxable equivalent yield of 9.16% for investors in
the 31% federal income tax bracket
o One-year taxable equivalent total return on share
price of 14.69% for investors in the 31% federal income tax bracket
PIE CHART:
AAA 45%
AA 14%
A 21%
BBB/NR 20%
A New Benefit for Nuveen Exchange-Traded Fund Shareholders
The benefits of your Nuveen Exchange-Traded Fund just got better. Now investors
with at least $50,000 in Nuveen holdings - including Exchange-Traded Funds - are
eligible for a reduction in the sales charge on purchases of Class A shares of
any Nuveen Mutual Fund.
This program is available for any of Nuveen's collection of Premier AdviserSM
equity and municipal bond investments. Now you can diversify your portfolio with
the quality investments you count on from Nuveen and the benefit of reduced
rates.
For more information, contact your financial adviser and ask for a prospectus.
Or call Nuveen Investor Services at (800) 257-8787. Please read it carefully
before you invest.
* Overall rating within the municipal bond category for the period ended April
30, 1998. Morningstar proprietary ratings reflect historical risk-adjusted
performance and are subject to change every month. Ratings are calculated from
a fund's three-, five- and 10-year average annual returns in excess of 90-day
Treasury bill returns, with appropriate fee adjustments and a risk factor that
reflects fund performance below 90-day Treasury bill returns. NPP, NMA and NMO
earned four stars for the three- and five-year periods ended April 30, 1998.
In an investment category, 10% of funds receive five stars and 22.5% receive
four stars. 195 funds were rated for the three-year period and 155 for the
five-year period, each ended April 30, 1998.
<PAGE>
Blow-in copy:
NOW MAY BE THE TIME TO INVEST IN EUROPE
Europe's strong stock markets and continuing economic development are creating
exceptional opportunities for investors around the world. Now may be the time
to move some of your portfolio into European companies by investing in the
Nuveen European Value Fund.
The Nuveen European Value Fund seeks to invest in a portfolio of quality,
currently undervalued European companies that offer the potential for
significant price appreciation. The fund's overall management is provided by
Nuveen, with Institutional Capital Corporation -- Nuveen's Premier Adviser(sm)
for value investing -- serving as portfolio manager.
Diversifying your portfolio with investments in European stocks can provide the
potential for enhanced returns and reduced risk. As a Nuveen investor, you may
be eligible for a reduced sales charge based on the amount of your current
Nuveen holdings.
Investing overseas may present some special risks, and is not for everyone. To
determine if the European Value Fund would help you build a better portfolio,
talk with your financial adviser and ask for a prospectus, which details all
fees and expenses. A prospectus is also available from Nuveen by calling
(800) 621-7227. Please read it carefully before you invest.
(See other side for a Nuveen product listing)
NUVEEN INVESTMENTS CAN HELP
YOU SUSTAIN THE WEALTH OF A LIFETIME
MUTUAL FUNDS
Nuveen European Value Fund
Nuveen Rittenhouse Growth Fund
Growth and Income Stock Fund
Balanced Stock and Bond Fund
Balanced Municipal and Stock Fund
National Municipal Bond Funds
State-Specific Municipal Bond Funds
UNIT TRUSTS
Equity
Corporate Bond
Municipal Bond
EXCHANGE-TRADED FUNDS
MUNI PREFFERED(R)
PRIVATE ASSET MANAGEMENT
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: Wealth takes a lifetime to build. Once achieved,
it should be preserved.
Mountain Chart:
Bond Buyer 40
4/30/97 5.89
5/31/97 5.74
6/30/97 5.69
7/31/97 5.4
8/31/97 5.55
9/30/97 5.47
10/31/97 5.4
11/30/97 5.36
12/31/97 5.26
1/31/98 5.19
2/28/98 5.24
3/31/98 5.27
4/30/98 5.39
Dear Shareholder
I'm pleased to report that over the past 12 months, the Nuveen exchange-traded
funds continued to perform well and meet their objectives of providing
attractive income and after-tax total returns. As of April 30, 1998,
shareholders were receiving annual current market yields that ranged from 6.25%
to 6.32%. To match these yields, investors in the 31% federal income tax bracket
would have to earn between 9.06% and 9.16% on taxable alternatives.
The declining interest rate environment over the past year had a significant
impact on the funds' performance. As you can see on the chart below, the yield
on the Bond Buyer 40, a representation of the long-term municipal bond market,
fell from 5.89% to 5.39% during the year. The decline had an im pact on the
funds' income levels, and the dividends for all three funds in this report were
adjusted during the year. As interest rates declined, higher-yielding bonds that
were called or sold from the portfolios were replaced with bonds paying today's
lower interest rates. As a result, the funds' dividends were reduced to reflect
the levels of income being earned by the portfolios.
However, the decline in interest rates also had a positive impact on the
funds because many portfolio holdings appreciated in value during the period.
Many of the bonds in the portfolios have higher coupon rates than are available
in today's market, and the value of those bonds increased as rates trended
downward. The price appreciation resulting from this and other factors led to
the funds' strong total returns over the year.
The Economy in Review
The past 12 months were noteworthy for the ongoing performance of the equity
markets, which continued to exhibit remarkable strength. Fixed-income
investments also enjoyed bullish performance, as declining interest rates and
low inflation provided the ideal backdrop for a bond market rally. Much of the
decline in interest rates resulted from expectations that the financial
problems of Asia would restrain the prices of imported goods and reduce foreign
demand for U.S. products and services, thereby keeping inflation at moderate
levels. These inflation expectations were largely fulfilled, as the Consumer
Price Index rose only 1.4% for the 12 months ended April 1998, remaining at one
of its lowest levels in more than 30 years.
In coming months, we will continue to watch closely several key factors
that are likely to affect the future of the economy, including demand for goods
and services, changes in U.S. production capacity, the availability of qualified
employees, and stability of the money supply. While it is still too early for
the full impact of Asia's financial difficulties to show up in U.S. economic
statistics, the potential long-term effect of this crisis on American markets is
of special concern. We expect that the development of these factors will
continue to influence the tone of the fixed-income markets during the remainder
of the year.
Building Better Portfolios
As economic events unfold, we believe that many investors will find
diversification to be an increasingly important investment strategy. An
appropriately diversified portfolio that is invested in a variety of asset
classes that each react differently to changes in the economic environment can
help cushion your portfolio against risk.
Many investors select Nuveen's exchange-traded funds because their emphasis on
dependable tax-free income and attractive after-tax returns makes them ideal for
building and maintaining long-term financial security. These funds can work
together with other Nuveen investments to create the foundation of a
diversified, well-balanced portfolio. Recent studies by Nuveen Research have
demonstrated that balanced portfolios combining municipal bonds and stocks
provided superior after-tax returns and lower levels of risk compared with
blends of stocks and taxable bonds. You and your financial adviser may want to
consider combining your Nuveen municipal bond fund with an invest ment in the
new Nuveen European Value Fund, an equity mutual fund that offers a portfolio of
quality European company stocks for investors seeking long-term growth and inter
national diversification. This fund is just one of an ever-expanding range of
Nuveen products and services designed to help investors achieve diversification
while building a tax-efficient, risk-sensitive investment portfolio. If you'd
like to learn more about the Nuveen European Value Fund or any of our other
investments, contact your financial adviser or call Nuveen Investor Services
for a prospectus at (800) 621-7227. Please read it carefully before you invest.
When seeking quality investment solutions that withstand the test of
time, we hope that you continue to think of John Nuveen & Co. On behalf of
everyone at Nuveen, I thank you for your continued confidence in us and our
family of investments.
Sincerely,
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
June 15, 1998
Sidebar text: Nuveen offers an ever-expanding range of products designed to help
investors build a diversified, tax-efficient portfolio.
<PAGE>
Nuveen Exchange-Traded Funds
Portfolio Manager Roundtable
Bill Fitzgerald and Tom Futrell, portfolio managers of Nuveen's national
exchange-traded funds, review the past year in the municipal market and talk
about fund performance and opportunities to find value.
What factors influenced the performance of municipal bonds over the past year?
Over the past 12 months, we have enjoyed a bull market in fixed-income
investments, including municipal bonds. Bond prices rose as interest rates
continued to drop and inflation remained at 30-year lows. Although still strong,
the performance of the municipal market was moderated by the effect of heavy
supply, as the lower rate environment stimulated a substantial increase in new
issuance as well as the refinancing of existing bonds. The first quarter of 1998
saw $68 billion of new municipal issuance, up 70% from the same period in 1997.
The flood of new issues continued in recent weeks with May's long-awaited sale
of the first segment of Long Island (New York) Power Authority's $7 billion
offering, the largest issuance in municipal bond history. The publicity
surrounding this issue brought an unusual level of attention to the municipal
market and may stimulate additional interest in municipal bonds.
How did the funds perform in this environment? For the 12 months ended
April 30, 1998, the funds posted total returns on net asset value that ranged
from 8.51% to 9.03%, equivalent to taxable returns of 11.56% to 12.10% for
investors in the 31% federal income tax bracket. The total returns compare with
the unleveraged Lehman Brothers Municipal Bond Index's annual return of 9.30%.
In reviewing the performance of these funds, it is important to look at
both components of total return: income and price appreciation. Understanding
what influences them can help us measure how well the funds are meeting their
objectives of providing investors with the highest possible level of tax-free
income consistent with capital preservation, as well as enhanced portfolio value
relative to the market.
Income
These funds have established track records of competitive yields despite their
recent dividend adjustments. In most cases, these adjustments can be attributed
to bond calls. When a bond is called, sold or reaches its maturity date, we must
replace it with a bond paying a current coupon rate. Many of the bonds replaced
in the past year had higher coupons than are available in the current municipal
market. As long as we remain in a lower rate environment, these transactions
could continue to affect the income levels of our funds.
Price Appreciation
Three major factors impacted the growth in price appreciation over the past
year:
o Declining interest rates: Because these funds were assembled in the higher
interest rate environment of the late 1980s and early 1990s, their underlying
bonds appreciated in value as rates fell. The coupon rates of these bonds are
also higher than those available in the current market, making the income level
offered by these funds more attractive.
o Pre-refundings: Declining interest rates also meant an increased number of
pre-refundings. In a pre-refunding, a bond issue is essentially repaid
early and becomes secured by U.S. government or agency securities until it can
be called by the issuer. When bonds are pre-refunded and backed by Treasury
securities, their credit quality improves, resulting in price appreciation.
These funds have large percentages of pre-refunded bonds, which led to
additional price appreciation.
o Credit upgrades: The continued strength of the U.S. economy helped to boost
the credit quality of many municipal bonds, as evidenced by the fact that credit
upgrades outnumbered down grades by a margin of approximately 17 to 1 among the
2,879 credit rating revisions issued by Moody's in 1997. During the first
quarter of 1998, upgrades continued to exceed downgrades by a significant
margin. These upgrades, in turn, increased the credit quality and value of many
of the bonds in the portfolios.
Where did you find value in the current market?
The heavy supply of new issues played a large role in our ability to find value
investing opportunities over the past year. The growing new issue supply forced
issuers and underwriters to customize the structure of new deals by including
attractive features such as above-market yields, flexible pricing and special
call provisions. This created several opportunities, especially in undervalued
areas such as FHA-insured hospital and housing bonds. Heavy volume also enabled
us to purchase bonds with favorable structures at attractive prices in smaller
states such as Arkansas, Kentucky, Michigan and Ohio.
What are your key strategies for the future?
In the coming year, we will attempt to pre-empt some bond calls in an effort to
help preserve income. Pre-empting a bond call involves selling the bond before
its anticipated call date and then replacing it as we find undervalued bonds
that will add value to the portfolios and help us pursue our investment
objectives. We will also continue to work toward improving the funds' general
structure through diversifying call risk and incrementally increasing portfolio
duration.
Our focus remains on selecting undervalued
securities that provide attractive income and the opportunity for price
appreciation. The research-intensive bond selection process in which Nuveen
excels will help us identify those issues that will support the funds'
objectives.
Nuveen Performance Plus Municipal Fund, Inc.
Performance Overview
As of April 30, 1998
NPP
Portfolio Statistics
==================================================
Inception Date 6/89
- --------------------------------------------------
Share Price 15 9/16
- --------------------------------------------------
Net Asset Value $15.12
- --------------------------------------------------
Current Market Yield 6.25%
- --------------------------------------------------
Taxable Equivalent Yield(1) 9.06%
- --------------------------------------------------
Fund Net Assets ($000) $1,301,801
- --------------------------------------------------
Average Weighted Maturity (Years) 21.53
- --------------------------------------------------
Modified Duration (Years) 7.81
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 11.46% 8.51%
- --------------------------------------------------
3-Year 8.53% 7.40%
- --------------------------------------------------
5-Year 6.07% 6.56%
- --------------------------------------------------
Since Inception 7.56% 8.14%
==================================================
Taxable Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 14.51% 11.56%
- --------------------------------------------------
3-Year 11.71% 10.58%
- --------------------------------------------------
5-Year 9.31% 9.84%
- --------------------------------------------------
Since Inception 10.78% 11.44%
==================================================
Top 5 Sectors
U.S. Guaranteed 29%
- --------------------------------------------------
Utilities 14%
- --------------------------------------------------
Housing (Single-Family) 13%
- --------------------------------------------------
Tax Obligation (Limited) 13%
- --------------------------------------------------
Health Care 9%
- --------------------------------------------------
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 based on 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.
Bar chart:
1997-1998 Monthly Tax-Free Dividends
5/97 0.084
6/97 0.084
7/97 0.084
8/97 0.081
9/97 0.081
10/97 0.081
11/97 0.081
12/97 0.081
1/98 0.081
2/98 0.081
3/98 0.081
4/98 0.081
<PAGE>
Nuveen Municipal Advantage Fund, Inc.
Performance Overview
As of April 30, 1998
NMA
Portfolio Statistics
==================================================
Inception Date 12/89
- --------------------------------------------------
Share Price 15 7/8
- --------------------------------------------------
Net Asset Value $15.57
- --------------------------------------------------
Current Market Yield 6.27%
- --------------------------------------------------
Taxable Equivalent Yield(1) 9.09%
- --------------------------------------------------
Fund Net Assets ($000) $960,775
- --------------------------------------------------
Average Weighted Maturity (Years) 21.08
- --------------------------------------------------
Modified Duration (Years) 7.36
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 11.36% 9.03%
- --------------------------------------------------
3-Year 9.25% 7.77%
- --------------------------------------------------
5-Year 6.04% 6.69%
- --------------------------------------------------
Since Inception 7.92% 8.66%
==================================================
Taxable Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 14.44% 12.10%
- --------------------------------------------------
3-Year 12.45% 10.93%
- --------------------------------------------------
5-Year 9.30% 9.96%
- --------------------------------------------------
Since Inception 11.16% 11.99%
==================================================
Top 5 Sectors
U.S. Guaranteed 39%
- --------------------------------------------------
Utilities 14%
- --------------------------------------------------
Housing (Single-Family) 10%
- --------------------------------------------------
Health Care 7%
- --------------------------------------------------
Transportation 6%
- --------------------------------------------------
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
based on 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.
Bar chart:
1997-1998 Monthly Tax-Free Dividends
5/97 0.0855
6/97 0.0855
7/97 0.0855
8/97 0.0855
9/97 0.0855
10/97 0.0855
11/97 0.083
12/97 0.083
1/98 0.083
2/98 0.083
3/98 0.083
4/98 0.083
<PAGE>
Nuveen Municipal Market Opportunity Fund, Inc.
Performance Overview
As of April 30, 1998
NMO
Portfolio Statistics
==================================================
Inception Date 3/90
- --------------------------------------------------
Share Price 15 15/16
- --------------------------------------------------
Net Asset Value $15.73
- --------------------------------------------------
Current Market Yield 6.32%
- --------------------------------------------------
Taxable Equivalent Yield(1) 9.16%
- --------------------------------------------------
Fund Net Assets ($000) $1,008,547
- --------------------------------------------------
Average Weighted Maturity (Years) 21.12
- --------------------------------------------------
Modified Duration (Years) 6.35
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 11.58% 8.78%
- --------------------------------------------------
3-Year 9.17% 7.80%
- --------------------------------------------------
5-Year 5.90% 6.57%
- --------------------------------------------------
Since Inception 8.02% 8.78%
==================================================
Taxable Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 14.69% 11.85%
- --------------------------------------------------
3-Year 12.37% 10.94%
- --------------------------------------------------
5-Year 9.16% 9.80%
- --------------------------------------------------
Since Inception 11.25% 12.06%
==================================================
Top 5 Sectors
U.S. Guaranteed 33%
- --------------------------------------------------
Tax Obligation (Limited) 15%
- --------------------------------------------------
Transportation 13%
- --------------------------------------------------
Housing (Single-Family) 12%
- --------------------------------------------------
Tax Obligation (General) 8%
- --------------------------------------------------
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
based on 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 taxable distributions in December of $0.0279.
Bar chart:
1997-1998 Monthly Tax-Free Dividends(3)
5/97 0.0865
6/97 0.0865
7/97 0.0865
8/97 0.0865
9/97 0.0865
10/97 0.0865
11/97 0.084
12/97 0.084
1/98 0.084
2/98 0.084
3/98 0.084
4/98 0.084
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC. (NPP)
April 30, 1998
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 0.9%
$ 3,025,000 Alabama Housing Finance Authority, Single Family Mortgage Revenue Bonds
(GNMA Collateralized 10/98 at 102 AAA $ 3,116,295
Home Mortgage Revenue Bond Program), 1998 Series A, 8.000%, 10/01/20
3,615,000 Alabama Water Pollution Control Authority, Revolving Fund Loan Bonds,
Series 1994, 6.750%, 8/15/17 8/05 at 100 Aaa 4,015,867
5,075,000 Jefferson County, Alabama, Sewer Revenue Refunding Warrants,
Series 1997-A, 5.625%, 2/01/22 2/07 at 101 Aaa 5,208,422
- ------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.2%
2,830,000 Alaska Housing Finance Corporation, Collateralized Bonds, 1989
First Series 6/00 at 102 Aaa 2,915,919
(Veterans Mortgage Program), 7.450%, 12/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.5%
5,550,000 Yuma Regional Medical Center on behalf of Hospital District No.1 of
Yuma County, Arizona, 8/02 at 101 1/2 N/R*** 6,388,883
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 - 2.5%
15,760,000 Arkansas Development Finance Authority, Single Family Mortgage
Revenue Bonds, Series 188A, 8/98 at 102 AAA 16,130,833
GNMA Collateralized, 8.400%, 8/01/20 (Alternative Minimum Tax)
8,005,000 Arkansas Development Finance Authority, Single Family Mortgage
Revenue Bonds, 1996 Series H (AMT), 1/07 at 102 AAA 8,348,655
6.100%, 7/01/30 (Alternative Minimum Tax)
5,325,000 Arkansas Development Finance Authority, Home Mortgage Revenue Bonds,
1998 Series B, 7/08 at 100 1/2 AAA 5,293,263
5.300%, 7/01/27 (Alternative Minimum Tax)
3,200,000 City of North Little Rock, Arkansas, Health Facilities Board
(Baptist Health), Healthcare Revenue Bonds 12/06 at 101 Aaa 3,237,856
(Baptist Health), Series 1996A, 5.500%, 12/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
California - 13.6%
10,000,000 California Health Facilities Financing Authority, Revenue Bonds
(USCF - Stanford Health Care), 11/08 at 101 Aaa 9,447,300
1998 Series A, 5.000%, 11/15/28
21,165,000 Department of Veterans Affairs of the State of California, Home
Purchase Revenue Bonds, 8/98 at 102 Aa2*** 21,813,919
1988 Series A, 8.300%, 8/01/19 (Alternative Minimum Tax)
(Pre-refunded to 8/01/98)
11,900,000 State Public Works Board of the State of California, Lease Revenue
Bonds (The Trustees of the 9/00 at 102 Aaa 12,706,344
California State University Library Projects), 6.250%, 9/01/16
(Pre-refunded to 9/01/00)
13,820,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda
University Medical Center Project), 12/00 at 102 Aaa 15,049,289
Series 1990-B, 7.000%, 12/01/22 (Pre-refunded to 12/01/00)
24,265,000 Department of Water and Power of The City of Los Angeles, California,
Electric Plant Refunding 11/03 at 102 Aa3 22,386,646
Revenue Bonds, Second Issue of 1993, 4.750%, 11/15/19
3,335,000 Department of Water and Power of The City of Los Angeles, Electric
Plant Refunding Revenue Bonds, 8/03 at 102 Aaa 3,171,018
Issue of 1994, 4.750%, 8/15/13
13,450,000 Ontario Redevelopment Financing Authority (San Bernardino County,
California), 1995 Revenue No Opt. Call Aaa 16,844,242
Refunding Bonds (Ontario Redevelopment Project No. 1), 7.200%, 8/01/17
20,420,000 Community Redevelopment Agency of the City of Palmdale, Residential
Mortgage Revenue No Opt. Call AAA 23,846,068
Refunding Bonds, 1991 Series A, 7.150%, 2/01/10
2,325,000 Community Redevelopment Agency of The City of Palmdale, Restructured
Single Family Mortgage No Opt. Call Aaa 3,093,529
Revenue Bonds, Series 1986D, 8.000%, 4/01/16 (Alternative Minimum Tax)
7,500,000 Sacramento Municipal Utility District (California), Electric Revenue
Refunding Bonds, 1993 Series G, 9/03 at 100 Aaa 6,894,375
4.750%, 9/01/21
8,140,000 San Bernardino Joint Powers Financing Authority, Lease Revenue Bonds
(State of California 12/05 at 102 A 8,218,063
Development of Transportation Lease), 1995 Series A, 5.500%, 12/01/20
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California (continued)
$ 10,000,000 San Bernardino County, California, Certificates of Participation,
Series 1995 (Medical Center 8/05 at 102 Aaa $10,224,600
Financing Project), 5.500%, 8/01/15
4,650,000 Southern California Public Power Authority (A public entity organized
under the laws of the State of 7/03 at 102 A 4,659,254
California) (Palo Verde Project), Power Project Revenue Bonds, 1993
Refunding Series A, 5.000%, 7/01/15
15,745,000 Walnut Valley Unified School District (Los Angeles County, California),
General Obligation 8/11 at 103 Aaa 19,211,734
Refunding Bonds, Series 1997 A, 7.200%, 2/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 3.1%
5,000,000 Castle Rock Ranch Public Improvements Authority, Public Facilities
Revenue Bonds, Series 1996, No Opt. Call AA 5,686,550
6.250%, 12/01/17
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1990A:
1,035,000 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/00) 11/00 at 102 Aaa 1,148,612
10,910,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/00 at 102 Baa1 11,915,357
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A:
1,715,000 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,991,767
4,755,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Baa1 5,423,553
955,000 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 1,069,409
2,640,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 2,903,050
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1991 D:
1,000,000 7.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 1,087,290
3,720,000 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 3,971,063
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
1,020,000 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,156,017
3,980,000 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 Baa1 4,403,313
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 4.2%
8,410,000 Florida Housing Finance Agency, GNMA Collateralized Home Ownership
Mortgage Revenue Bonds, 12/98 at 103 Aaa 8,716,376
1988 Series G1 Bonds, 8.300%, 6/01/20 (Alternative Minimum Tax)
10,000,000 State of Florida, Full Faith and Credit, State Board of Education,
Capital Outlay Bonds, 1996 Series A, 1/06 at 101 Aaa 9,461,200
4.750%, 1/01/16
4,000,000 Jacksonville Electric Authority (Jacksonville, Florida), St. Johns
River Power Park System Revenue 10/04 at 101 Aa1 3,932,560
Refunding Bonds, Issue 2 Series 11, 5.250%, 10/01/20
4,770,000 Orange County School Board, Certificates of Participation, Series
1997A Master Lease Program, 8/07 at 101 Aaa 4,786,361
5.375%, 8/01/22
25,935,000 City of Petersburg Health Facilities Authority (Florida), Allegany
Health System Revenue Bonds 12/99 at 102 Aaa 27,948,334
(St. Mary's Hospital, Inc.), Series 1985 B, 7.750%, 12/01/15
(Pre-refunded to 12/01/99)
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 1.7%
9,000,000 George L. Smith II Georgia World Congress Center Authority, Revenue
Bonds (Domed Stadium Project), 7/00 at 102 AA- 9,777,870
Series 1990, 7.875%, 7/01/20 (Alternative Minimum Tax)
2,000,000 George L. Smith II World Congress Center Authority, Refunding Revenue
Bonds (Domed Stadium Project), 7/10 at 101 Aaa 1,934,740
Series 2000, 5.500%, 7/01/20 (Alternative Minimum Tax)
(DD, settling 4/04/00)
10,000,000 Development Authority of Monroe County (Georgia), Pollution Control
Revenue Bonds (Georgia Power 10/99 at 102 A1 10,442,500
Company Plant Scherer Project), Second Series 1994, 6.750%, 10/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 9.3%
10,600,000 Illinois Development Finance Authority, Revenue and Refunding Bonds,
Series 1990A 2/00 at 102 Baa2*** 11,573,822
(Columbus-Cuneo-Cabrini Medical Center), 8.500%, 2/01/15 (Pre-
refunded to 2/01/00)
Illinois Development Finance Authority, Multi-family Housing
Revenue Bonds, Series 1992 (Town and Garden Apartments Project):
5,895,000 7.800%, 3/01/06 (Alternative Minimum Tax) 3/02 at 102 BBB+ 6,453,257
5,960,000 7.200%, 9/01/08 (Alternative Minimum Tax) 3/02 at 102 BBB+ 6,402,292
10,000,000 Illinois Educational Facilities Authority, Adjustable Demand Revenue
Bonds, The University of 12/03 at 102 Aa1 10,227,900
Chicago, Series 1985, Conversion To A Fixed Interest Rate, 5.700%,
12/01/25
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (continued)
Illinois Health Facilities Authority, Revenue Bonds, Series 1989B
(Northwestern Memorial Hospital):
$ 5,380,000 7.200%, 8/15/07 (Pre-refunded to 8/15/99) 8/99 at 102 Aaa $ 5,705,060
4,620,000 7.200%, 8/15/07 8/99 at 102 Aa 4,874,239
12,910,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1994A
(Northwestern Memorial Hospital), 8/04 at 102 AA 13,632,960
6.000%, 8/15/24
City of Chicago, General Obligation Library Bonds, Series 1997:
3,000,000 5.750%, 1/01/17 1/08 at 102 Aaa 3,153,480
12,000,000 5.250%, 1/01/27 1/08 at 102 Aaa 11,721,000
7,500,000 City of Chicago, General Obligation Bonds, Project and Refunding
Series 1998, 5.250%, 1/01/28 7/08 at 102 Aaa 7,301,475
25,000,000 Chicago School Reform Board of Trustees of the Board of Education
of the City of Chicago, Illinois, 12/07 at 102 Aaa 24,203,500
Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues),
Series 1997A, 5.250%, 12/01/30
5,000,000 City of Chicago, Illinois, Gas Supply Revenue Bonds, 1990 Series A
(The Peoples Gas Light and Coke 5/00 at 102 AA- 5,440,600
Company Project), 8.100%, 5/01/20 (Alternative Minimum Tax)
9,605,000 City of Chicago, Chicago-O'Hare International Airport, Special Facility
Revenue Bonds (United 5/99 at 103 Baa2 10,220,296
Air Lines, Inc. Project), Series 1984C, 8.200%, 5/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.5%
5,250,000 Indiana Bond Bank, State Revolving Fund Program Bonds, Series 1994A
Guarantee Revenue Bonds, 2/04 at 102 AAA 5,531,820
6.000%, 2/01/16
Indiana Health Facilities Financing Authority (Ancilla Systems
Inc.), Obligated Group Revenue Bonds, Series 1997:
15,380,000 5.250%, 7/01/17 7/07 at 101 Aaa 15,159,605
13,735,000 5.250%, 7/01/22 7/07 at 101 Aaa 13,385,307
5,000,000 Fort Wayne South Side School Building Corporation, First Mortgage
Bonds, Series 1994, Allen 1/04 at 102 Aaa 5,395,400
County, Indiana, 6.125%, 1/15/12
5,730,000 Michigan City School Building Corporation, First Mortgage Bonds,
Series 1994 A, LaPorte and Porter 12/04 at 102 Aaa 6,263,807
Counties, Indiana, 6.125%, 12/15/09
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 1.0%
12,290,000 Iowa Finance Authority, Single Family Mortgage Revenue Bonds, Issue
B (GMNA Mortgage-Backed 11/98 at 102 Aaa 12,657,102
Securities Program), 8.250%, 5/01/20 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.1%
1,665,000 Sedgwick County, Kansas, Shawnee County, Kansas and Leavenworth
County, Kansas, GMNA 6/99 at 103 Aaa 1,743,521
Collateralized Mortgage Revenue Bonds, 1989 Series A, 7.875%, 12/01/21
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.9%
10,000,000 County of Carroll, Kentucky, Collateralized Pollution Control Revenue
Bonds (Kentucky Utilities Company 9/02 at 102 Aa2 11,269,500
Project), 1992 Series A, 7.450%, 9/15/16
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 5.3%
35,700,000 Louisiana Stadium and Exposition District, Hotel Occupancy Tax Bonds,
Series 1996, 5.750%, 7/01/26 7/06 at 102 Aaa 37,175,481
5,085,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage
Revenue Refunding Bonds 12/00 at 103 Aaa 5,372,862
(GNMA Mortgage-Backed Securities Program), Series 1988F, 7.875%,
12/01/21 (Alternative Minimum Tax)
5,040,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage
Revenue Refunding Bonds 10/07 at 102 Aaa 5,175,677
(GNMA and FNMA Mortgage-Backed Securities Program), Series 1997B-1,
5.750%, 10/01/26
1,850,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage
Revenue Refunding Bonds 10/07 at 102 Aaa 1,899,802
(GNMA and FNMA Mortgage-Backed Securities Program), Series 1996C-1,
5.750%, 10/01/26
6,075,000 Parish of Jefferson Home Mortgage Authority (Louisiana), GNMA
Collateralized Single Family 12/00 at 103 Aaa 6,412,892
Mortgage Revenue Bonds, Series 1989A, 7.875%, 12/01/21 (Alternative
Minimum Tax)
5,630,000 New Orleans Housing Development Corporation, Multifamily Housing
Revenue Refunding Bonds, 6/03 at 100 AAA 6,051,406
Series 1990A (Curran Place Apartments/Fannie Mae collateralized),
7.700%, 8/01/23
6,500,000 City of Shreveport, State of Louisiana, Water and Sewer Revenue Bonds, 12/03 at 103 Aaa 6,999,590
1986 Series A, 5.950%, 12/01/14
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Maine - 0.9%
$ 11,000,000 Maine State Housing Authority, Mortgage Purchase Bonds, 1994 Series A,
5.700%, 11/15/26 2/04 at 102 AA $ 11,143,220
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.2%
7,475,000 Housing Opportunities Commission of Montgomery County (Montgomery
County, Maryland), 7/04 at 102 Aa 7,854,282
Multifamily Housing Revenue Bonds, 1994 Series A, 6.250%, 7/01/28
7,090,000 City of Takoma Park, Maryland, Hospital Facilities Refunding and
Improvement Revenue Bonds No Opt. Call Aaa 8,184,342
(Washington Adventist Hospital), Series 1995, 6.500%, 9/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 4.4%
14,375,000 Massachusetts Bay Transportation Authority, General Transportation
System Bonds, 1990 Series B, 3/01 at 102 Aaa 16,021,800
7.875%, 3/01/21 (Pre-refunded to 3/01/01)
4,000,000 Massachusetts Health and Educational Facilities Authority, Revenue
Bonds, Baystate Medical 7/99 at 102 A+*** 4,239,920
Center Issue, Series C, 7.500%, 7/01/20 (Pre-refunded to 7/01/99)
10,100,000 Massachusetts Health and Educational Facilities Authority, Revenue
Bonds, New England Medical 7/02 at 102 Aaa 10,981,932
Center Hospitals Issue, Series F, 6.625%, 7/01/25
3,480,000 Massachusetts Housing Finance Agency, Multi-Family Residential
Development Bonds, 1989 Series A 8/99 at 102 Aaa 3,608,586
(Fannie Mae Collateralized), 7.650%, 2/01/28 (Alternative Minimum Tax)
1,665,000 Massachusetts Housing Finance Agency, Single Family Housing Revenue
Bonds, Series 7, 6/98 at 102 Aa 1,699,682
8.400%, 12/01/16 (Alternative Minimum Tax)
470,000 Massachusetts Municipal Wholesale Electric Company, Power Supply
System Revenue Bonds, No. Opt. Call BBB+ 549,645
1987 Series A, 8.750%, 77/01/18
8,000,000 Massachusetts Water Resources Authority, General Revenue Bonds,
1990 Series A, 7.500%, 4/00 at 102 Aaa 8,651,760
4/01/16 (Pre-refunded to 4/01/00)
10,065,000 City of Boston, Massachusetts, Revenue Bonds, Boston City Hospital
(FHA Insured Mortgage), 8/00 at 102 Aaa 10,990,980
Series A, 7.625%, 2/15/21 (Pre-refunded to 8/15/00)
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 2.2%
15,000,000 Michigan Public Power Agency, Belle River Project Refunding Revenue
Bonds, 1993 Series A, 1/03 at 102 Aaa 14,817,750
5.250%, 1/01/18
10,000,000 City of Detroit, Michigan, Water Supply System Revenue (Senior Lien)
Bonds, Series 1997-A, 7/07 at 101 Aaa 9,576,000
5.000%, 7/01/21
4,330,000 Grand Rapids Housing Corporation, Multifamily Revenue Refunding
Bonds, Series 1992 1/04 at 104 AAA 4,833,103
(FHA Insured Mortgage Loan-Section 8 Assisted Elderly Project),
7.375%, 7/15/41
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 4.3%
12,325,000 The Dakota County Housing and Redevelopment Authority, Single Family
Mortgage Revenue Bonds 4/04 at 102 AAA 13,127,111
(Fannie Mae Mortgage-Backed Securities Program), Series 1994A,
6.900%, 10/01/27
24,380,000 The Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota, Sales Tax Revenue 11/15 at 103 Aaa 29,606,584
Refunding Bonds (Civic Center Project), Series 1996, 7.100%, 11/01/23
Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota, Single Family Mortgage Revenue Refunding Bonds
(Middle Income Program, Phase II - FNMA Mortgage-Backed
Securities Program), Series 1995:
2,590,000 6.400%, 3/01/21 3/05 at 102 Aaa 2,732,631
9,655,000 6.800%, 3/01/28 3/05 at 102 19/32 Aaa 10,379,415
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.6%
7,570,000 Missouri Housing Development Commission, Single Family Mortgage
Revenue Bonds (GNMA 5/99 at 101 AAA 7,732,831
Mortgage-Backed Securities Program), 1988 Series A, 8.300%, 5/01/19
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 0.8%
10,530,000 Nebraska Investment Finance Authority, Single Family Mortgage Revenue
Bonds, 1988 Series 1, 8/98 at 102 Aaa 10,804,412
8.125%, 8/15/38 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nevada - 2.3%
$ 10,505,000 State of Nevada, General Obligation (Limited Tax) Bonds (Nevada Municipal
Bond Bank Project No. 52), 5/06 at 101 AA*** $11,560,647
Series July 1, 1996 A, 6.000%, 5/15/21 (Pre-refunded to 5/15/06)
City of Las Vegas Downtown Redevelopment Agency, Tax Increment
Revenue Bonds (City of Las Vegas Downtown Redevelopment
Project), Series 1986A (Las Vegas, Nevada) (1989 Remarketing):
1,440,000 7.900%, 6/01/06 (Pre-refunded to 6/01/98) 6/98 at 102 A-*** 1,473,480
2,440,000 7.900%, 6/01/06 6/98 at 102 A- 2,495,632
8,285,000 7.900%, 6/01/09 (Pre-refunded to 6/01/98) 6/98 at 102 A-*** 8,477,626
5,100,000 Washoe County, Nevada, Hospital Revenue Bonds (Washoe Medical
Center, Inc. Project), 6/99 at 102 N/R*** 5,394,117
Series 1989A, 7.600%, 6/01/19 (Pre-refunded to 6/01/99)
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.3%
3,070,000 The Industrial Development Authority of the State of New Hampshire,
Pollution Control Revenue 12/99 at 103 BBB- 3,272,866
Bonds (The United Illuminating Company Project), 1989 Series A, 8.000%, 12/01/14
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 10.3%
4,350,000 Dormitory Authority of the State of New York, State University Educational
Facilities Revenue Bonds, 5/00 at 102 Aaa 4,738,629
Series 1990A, 7.700%, 5/15/12 (Pre-refunded to 5/15/00)
4,000,000 Dormitory Authority of the State of New York, State University Educational
Facilities Revenue Bonds, 5/00 at 100 A- 4,061,880
Series 1990B, 6.000%, 5/15/17
New York State Dormitory Authority, Secured Hospital Revenue
Bonds (Interfaith Medical Center), Series 1988D:
3,000,000 5.300%, 2/15/19 2/08 at 101 1/2 Baa1 2,906,460
5,000,000 5.400%, 2/15/28 2/08 at 101 1/2 Baa1 4,908,750
5,000,000 New York Local Government Assistance Corporation (A Public Benefit Corporation of the State of
New York), Series 1993C Refunding Bonds, 5.000%, 4/01/21 4/03 at 102 Aaa 4,789,300
4,000,000 New York State Medical Care Facilities Finance Agency, St. Luke's-Roosevelt
Hospital Center 2/00 at 102 AA 4,234,400
FHA-Insured Mortgage Revenue Bonds, 1989 Series A, 7.375%, 2/15/19
14,750,000 New York State Medical Care Facilities Finance Agency, Mental Health
Services Facilities 2/04 at 102 Aaa 14,790,562
Improvement Revenue Bonds, 1993 Series F Refunding, 5.375%, 2/15/14
15,000,000 New York State Urban Development Corporation, Correctional Facilities Revenue Bonds,
Series G, 7.250%, 1/01/14 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 16,068,150
9,295,000 Municipal Assistance Corporation for the City of New York, New York,
Series 67 Bonds, 7/99 at 102 Aa2*** 9,867,850
7.625%, 7/01/08 (Pre-refunded to 7/01/99)
5,000 The City of New York, General Obligation Bonds, Fiscal 1987 Series D,
8.500%, 8/01/08 8/01 at 100 A3 5,125
The City of New York, General Obligation Bonds, 1992 Series C:
7,885,000 6.625%, 8/01/14 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 8,689,585
115,000 6.625%, 8/01/14 8/02 at 101 1/2 Aaa 125,874
12,500,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series A,
Fixed Rate Tax-Exempt Bonds, No Opt. Call A3 14,125,500
7.000%, 8/01/05
16,295,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series F,
5.750%, 2/01/15 2/06 at 101 1/2 A3 16,846,260
6,500,000 New York City Municipal Water Finance Authority (New York),
Water and Sewer System Revenue 6/99 at 101 1/2 A-*** 6,832,280
Bonds, Fiscal 1990 Series A, 7.250%, 6/15/11 (Pre-refunded to 6/15/99)
20,650,000 New York City Municipal Water Finance Authority, Water and Sewer
System Revenue Bonds, 6/06 at 101 Aaa 21,435,112
Fiscal 1996 Series B, 5.750%, 6/15/26
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.4%
5,750,000 North Carolina Municipal Power Agency Number 1, Catawba Electric
Revenue Bonds, Series 1998A, 1/08 at 102 Aaa 5,514,595
5.000%, 1/01/20
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ohio - 0.8%
$ 6,205,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds
(GNMA Mortgage-Backed 9/99 at 102 AAA $ 6,513,575
Securities Program), 1989 Series A, 7.650%, 3/01/29 (Alternative Minimum Tax)
1,050,000 Toledo-Lucas County Port Authority, Development Revenue Bonds
(Northwest Ohio Bond Fund), 11/99 at 102 N/R 1,091,800
Series 1989A, 8.250%, 11/15/04 (Alternative Minimum Tax)
460,000 Toledo-Lucas County Port Authority, Development Revenue Bonds (Northwest
Ohio Bond Fund), No Opt. Call N/R 475,810
Series 1989C, 8.250%, 11/15/99 (Alternative Minimum Tax)
730,000 Toledo-Lucas County Port Authority, Development Revenue Bonds
(Northwest Ohio Bond Fund), 5/00 at 102 N/R*** 789,984
Series 1989E, 8.375%, 5/15/05 (Alternative Minimum Tax) (Pre-refunded to 5/15/00)
1,180,000 Toledo-Lucas County Port Authority, Development Revenue Bonds
(Northwest Ohio Bonds Fund), 11/99 at 102 N/R 1,228,050
Series 1989F, 8.375%. 11/15/04 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 1.2%
9,850,000 Oklahoma Industries Authority, Health Facilities Revenue Bonds
(Sisters of Mercy Health System, 6/99 at 102 Aaa 10,417,458
St. Louis, Inc.), Series 1989 A, 7.500%, 6/01/18 (Pre-refunded to 6/01/99)
4,475,000 The Comanche County Hospital Authority (Lawton, Oklahoma), Hospital
Revenue Bonds, Series 1989, 7/99 at 102 AAA 4,772,318
8.050%, 7/01/16 (Pre-refunded to 7/01/99)
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 0.5%
5,390,000 Pennsylvania Higher Educational Facilities Authority (Commonwealth
of Pennsylvania), Revenue Bonds 11/00 at 102 A*** 5,940,642
Thomas Jefferson University-Jefferson Park Hospital), 1990 Series, 7.750%, 11/01/15
(Pre-refunded to 11/01/00)
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 0.2%
2,290,000 Rhode Island Housing and Mortgage Finance Corporation, Series 3-B Bonds,
8.050%, 4/01/22 10/00 at 102 AA+ 2,400,515
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.2%
2,095,000 South Carolina State Housing Finance and Development Authority,
Homeownership Mortgage Purchase 7/98 at 102 Aa 2,139,540
Bonds, 1988 Series A, 8.600%, 7/01/19 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
South Dakota - 0.4%
South Dakota Health and Educational Facilities Authority,
Revenue Bonds, Series 1989 (Sioux Valley Hospital Issue):
370,000 7.625%, 11/01/13 (Pre-refunded to 11/01/98) 11/98 at 102 AA-*** 384,252
4,630,000 7.625%, 11/01/13 (Pre-refunded to 11/01/98) 11/98 at 102 Aa*** 4,808,348
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.7%
1,695,000 Tennessee Housing Development Agency, Homeownership Program Bonds, Issue G,
7.650%, 7/01/06 7/03 at 100 AA 1,797,174
7,185,000 The Health, Educational and Housing Facility Board of the City of Memphis,
Tennessee, Multifamily 1/03 at 103 AAA 7,532,106
Mortgage Revenue Refunding Bonds (Riverdale Plaza Apartments Project), Series 1993, 6.350%, 7/20/28
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 9.4%
9,570,000 State of Texas, Veterans' Bonds, Series 1985, General
Obligation Bonds, 8.300%, 12/01/16 12/99 at 100 AAA 10,216,070
(Pre-refunded to 12/01/99)
11,800,000 City of Austin, Texas, Combined Utility Systems Revenue Refunding Bonds,
Series 1992, 5.750%, 11/15/16 11/02 at 100 Aaa 12,087,920
25,000,000 Brazos River Authority, (Texas), Collateralized Revenue Refunding Bonds
(Houston Lighting and Power 7/99 at 102 A2 26,395,500
Company Project), Series 1989A, 7.625%, 5/01/19
20,000,000 Dallas-Fort Worth International Airport Facility Improvement Corporation,
American Airlines, Inc., 11/00 at 102 Baa2 21,545,600
Revenue Bonds, Series 1990, 7.500%, 11/01/25 (Alternative Minimum Tax)
5,505,000 Fort Worth Housing Finance Corporation, Home Mortgage Revenue
Refunding Bonds, Series 1991A, 10/01 at 103 Aa 5,966,264
8.500%, 10/01/11
4,250,000 Harris County Health Facilities Development Corporation,
Hospital Revenue Bonds (Texas 10/99 at 102 Aaa 4,511,120
Children's Hospital Project), Series 1989 A, 7.000%, 10/01/19
(Pre-refunded to 10/01/99)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Texas (continued)
$ 685,000 Hidalgo County Housing Finance Corporation, Single Family Mortgage
Revenue Bonds (GNMA 4/04 at 102 Aaa $ 721,374
and FNMA Collateralized), Series 1994A, 6.750%, 10/01/15 (Alternative Minimum Tax)
25,200,000 Matagorda County Navigation District Number One, (Texas),
Collateralized Revenue Refunding 7/99 at 102 Aaa 26,528,544
Bonds (Houston Lighting & Power Company Project), Series 1989C, 7.125%, 7/01/19
13,740,000 McAllen Health Facilities Development Corporation (Texas), Health
Facilities Revenue Bonds 6/99 at 102 Aaa 14,495,425
(Sisters of Mercy Health System, St. Louis, Inc.), Series 1989 A, 7.250%, 6/01/15
(Pre-refunded to 6/01/99)
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 1.1%
15,000,000 Utah County, Utah, Hospital Revenue Bonds, Series 1997 (IHC
Health Services, Inc.), 5.250%, 8/15/21 8/07 at 101 Aaa 14,624,850
- ------------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.9%
11,000,000 Vermont Housing Finance Agency, Single Family Housing Bonds, Series 5,
7.000%, 11/01/27 11/04 at 102 A1 11,883,190
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.9%
10,865,000 Fairfax County Water Authority (Virginia), Water Revenue Bonds,
Series 1989, 7.250%, 1/01/27 1/00 at 102 Aaa 11,631,416
(Pre-refunded to 1/01/00)
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 6.4%
16,000,000 Washington Public Power Supply System, Nuclear Project No. 1,
Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 7/03 at 102 Aaa 16,350,400
Washington Public Power Supply System, Nuclear Project No. 1,
Refunding Revenue Bonds, Series 1989A:
40,290,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 42,711,946
7,500,000 6.000%, 7/01/17 (Pre-refunded to 7/01/99) 7/99 at 100 Aa1*** 7,680,900
3,590,000 Washington Public Power Supply System, Nuclear Project No. 2 Revenue Bonds,
Series 1981A, 14.375%, 7/01/01 No Opt. Call Aa1 4,174,632
4,365,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding Revenue Bonds,
Series 1994A, 5.000%, 7/01/09 7/04 at 102 Aaa 4,390,884
4,000,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding
Revenue Bonds, 7/03 at 102 Aa1 4,101,280
Series 1993B, 5.700%, 7/01/18
2,815,000 Grant County Public Utility District 2, Wanapum Hydro Electric
Revenue Bonds, Series 1997A, 1/06 at 102 Aaa 2,879,012
Master Lease Program, 5.625%, 1/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 1.0%
13,400,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Series 1993 (Aurora Health 8/03 at 102 Aaa 13,051,198
Care Obligated Group), 5.250%, 8/15/23
- ------------------------------------------------------------------------------------------------------------------------------------
$1,213,560,000 Total Investments - (cost $1,204,367,512) - 98.2% 1,277,771,712
==============
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Temporary Investments in Short-Term Municipal Securities - 0.1%
$ 1,400,000 Minneapolis/St. Paul Housing and Redevelopment Authority Health Care (Children's Health Care),
============= Series 1995, Variable Rate Demand Bonds, 4.300%, 8/15/25+ SP-1+ $ 1,400,000
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 22,628,813
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,301,800,525
====================================================================================================================
* 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. Pre-refunded securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis (note 1).
+ The security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN MUNICIPAL ADVANTAGE FUND, INC. (NMA)
April 30, 1998
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alaska - 0.4%
$ 3,700,000 Alaska Housing Finance Corporation, General Housing Purpose Bonds,
1992 Series A, 6.600%, 12/01/23 12/02 at 102 Aa2*** $ 4,076,808
(Pre-refunded to 12/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
California - 11.1%
4,500,000 California Health Facilities Financing Authority, Insured Health
Facilities Revenue Bonds (Valley Care 5/00 at 102 A+*** 4,836,690
Hospital Corporation), 1989 Series A, 7.000%, 5/01/20 (Pre-refunded to 5/01/00)
24,260,000 State Public Works Board of the State of California, Lease Revenue Refunding
Bonds (The Regents of the University of California), 1993 Series A 6/03 at 102 Aa3 24,499,446
(Various University of California Projects), 5.500%, 6/01/21
7,535,000 County of Contra Costa, California, 1989 Home Mortgage Revenue Bonds
(GNMA Mortgage-Backed No Opt. Call Aaa 9,765,812
Securities Program), 7.750%, 5/01/22 (Alternative Minimum Tax)
12,455,000 Department of Water and Power of The City of Los Angeles, California,
Electric Plant Refunding Revenue 11/03 at 102 Aa3 11,490,858
Bonds, Second Issue of 1993, 4.750%, 11/15/19
10,000,000 Department of Water and Power of The CIty of Los Angeles, Water Works
Refunding Revenue Bonds, 5/01 at 102 Aa 10,700,100
Issue of 1992, 6.400%, 5/15/28
4,385,000 Northern California Power Agency, Hydroelectric Project Number One
Revenue Bonds, Refunding Series E, 7/98 at 102 A- 4,492,871
7.150%, 7/01/24
14,490,000 Palm Desert Financing Authority, Tax Allocation Revenue Bonds
(Project Area No. 2), 1992 Series A, 8/02 at 102 Aaa 15,560,666
6.125%, 8/01/22
5,000,000 Community Redevelopment Agency of the City of Palmdale, California,
Residential Mortgage Revenue No Opt. Call AAA 6,161,750
Refunding Bonds, Series 1991-B, 7.375%, 2/01/12
5,000,000 Community Redevelopment Agency of the City of Palmdale, Restructured
Single Family Mortgage Revenue Bonds, Series 1986A (Escrowed to Maturity), No Opt. Call Aaa 6,666,900
8.000%, 3/01/16 (Alternative Minimum Tax)
9,315,000 City of Perris, California, Single Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities), No Opt. Call Aaa 12,415,870
1989 Series A, 7.600%, 1/01/23 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 1.1%
8,575,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1990A, 8.500%, 11/15/23 11/00 at 102 Baa1 9,477,433
(Alternative Minimum Tax)
815,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1990A, 8.500%, 11/15/23 11/00 at 102 Aaa 914,202
(Alternative Minimum Tax) (Pre-refunded to 11/15/00)
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 2.0%
5,000,000 District of Columbia (Washington, D.C.), General Obligation Bonds,
Series 1998B, 6.000%, 6/01/19 No Opt. Call Aaa 5,454,350
6,585,000 District of Columbia Housing Finance Agency, Collateralized Single Family
Mortgage Revenue Bonds, 6/04 at 103 AAA 6,929,264
Series 1988F-1, 6.375%, 6/01/26 (Alternative Minimum Tax)
6,585,000 District of Columbia Housing Finance Agency, Single Family
Revenue Bonds, Series 1997-B, 6/07 at 102 AAA 6,806,651
5.900%, 12/01/28 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 2.3%
5,000,000 Dade County (Florida), Educational Facilities Authority, Revenue Bonds,
Series 1990 (St. Thomas University 1/00 at 102 N/R*** 5,382,950
Issue), 7.650%, 1/01/14 (Pre-refunded to 1/01/00)
5,420,000 Dade County Health Facilities Authority, Hospital Revenue Bonds (South
Shore Hospital and Medical 2/00 at 102 A+ 5,772,300
Center-FHA Insured Mortgage), Series 1989A, 7.600%, 8/01/24
10,990,000 City of Tampa, Florida, Allegany Health System Revenue Bonds, St. Mary's
Hospital, Inc. Issue, Series 1993, 12/03 at 102 Aaa 10,753,385
5.125%, 12/01/23
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hawaii - 0.4%
$ 3,750,000 Housing Finance and Development Corporation (State of Hawaii),
Single Family Mortgage Purchase 7/07 at 102 Aa1 $ 3,830,288
Revenue Bonds, 1997 Series A, 5.750%, 7/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 8.5%
10,750,000 Illinois Development Finance Authority, Revenue and Refunding Bonds,
Series 1990A (Columbus-Cuneo- 2/00 at 102 Baa2*** 11,737,603
Cabrini Medical Center), 8.500%, 2/01/15 (Pre-refunded to 2/01/00)
11,625,000 Illinois Educational Facilities Authority, Adjustable Demand
Revenue Bonds, The University of Chicago, 12/03 at 102 Aa1 11,889,934
Series 1985, Conversion To A Fixed Interest Rate, 5.700%, 12/01/25
10,115,000 Illinois Health Facilities Authority, Revenue Refunding Bonds,
Series 1996A (Rush-Presbyterian-St. Luke's 11/06 at 102 Aaa 10,984,890
Medical Center Obligated Group), 6.250%, 11/15/20
11,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1989B
(ServantCor), 7.875%, 8/15/19 8/99 at 102 N/R*** 11,744,150
(Pre-refunded to 8/15/99)
7,905,000 Illinois Health Facilities Authority, Revenue Refunding Bonds,
Series 1989B (Riverside Medical Center), 11/99 at 100 A*** 8,227,366
6.750%, 11/01/15 (Pre-refunded to 11/01/99)
5,000,000 Illinois Health Facilities Authority, Revenue Refunding Bonds,
Series 1989A (ServantCor), 7.875%, 8/15/19 8/99 at 102 N/R*** 5,338,250
(Pre-refunded to 8/15/99)
800,000 Illinois Housing Development Authority, Residential Mortgage
Revenue Bonds, 1988 Series C, 8/98 at 102 Aa2 818,736
8.100%, 2/01/22 (Alternative Minimum Tax)
11,800,000 Metropolitan Pier and Exposition Authority (Illinois), McCormick
Place Expansion Project Bonds, 6/03 at 102 Aaa 13,124,904
Series 1922A, 6.500%, 6/15/27 (Pre-refunded to 6/15/03)
2,500,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and
Will Counties, Illinois, No Opt. Call Aaa 3,153,975
General Obligation Bonds, Series 1990A, 7.200%, 11/01/20
4,450,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry
and Will Counties, Illinois, General Obligation Bonds, Series 1992A 6/02 at 100 Aaa 4,748,061
6.125%, 6/01/22 (Pre-refunded to 6/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 2.1%
9,000,000 Indiana Health Facility Financing Authority, Hospital Revenue Refunding
and Improvement Bonds, 5/06 at 102 Aaa 9,263,160
Series 1995 (Community Hospitals Projects), 5.700%, 5/15/22
7,425,000 Fort Wayne International Airport Building Corporation, Airport
Improvement Bonds, Series 1994, 1/04 at 101 Aa 7,694,305
Fort Wayne, Indiana, 5.900%, 1/01/14 (Alternative Minimum Tax)
3,215,000 Mooresville Consolidated School Building Corporation, First Mortgage Bonds,
Series 1994B (Morgan 1/04 at 102 A 3,502,775
County, Indiana), 6.400%, 7/15/15
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.9%
4,560,000 Iowa Finance Authority, Single Family Mortgage Bonds, 1995 Series C,
6.450%, 1/01/24 1/05 at 102 Aaa 4,806,878
3,500,000 City of Marshalltown, Iowa, Pollution Control Revenue Refunding Bonds
(Iowa Electric Light and 11/03 at 102 Aaa 3,534,230
Power Company Project), Series 1993, 5.500%, 11/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 1.5%
10,000,000 Louisiana Public Facilities Authority, Extended Care Facilities
Revenue Bonds (Comm-Care Corporation No Opt. Call BBB 14,190,100
Project), Series 1994, 11.000%, 2/01/14
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 7.1%
Massachusetts Bay Transportation Authority, General Transportation
System Bonds, 1990 Series A:
5,000,000 7.000%, 3/01/10 (Pre-refunded to 3/01/00) 3/00 at 100 Aaa 5,259,850
3,500,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 3,785,250
7,570,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds,
Emerson Hospital Issue, 7/00 at 102 AAA 8,312,314
Series C, 8.000%, 7/01/18 (Pre-refunded to 7/01/00)
13,915,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds,
Capital Asset Program 4/00 at 102 Aaa 14,987,012
Issue, Series F, 7.300%, 10/01/18 (Pre-refunded to 4/01/00)
1,045,000 Massachusetts Housing Finance Agency, Residential Housing Revenue Bonds,
1988 Series B, 8/99 at 102 A- 1,089,078
8.100%, 8/01/23 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts (continued)
$ 10,300,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds
(SEMASS Project), 7/01 at 103 N/R $ 11,554,128
Series 1991A, 9.000%, 7/01/15
11,535,000 Massachusetts Water Resources Authority, General Revenue Bonds,
1990 Series A, 4/00 at 102 Aaa 12,474,756
7.500%, 4/01/16 (Pre-refunded to 4/01/00)
8,770,000 Massachusetts Water Resources Authority, General Revenue Bonds,
1990 Series A, 4/00 at 102 Aaa 9,504,575
7.625%, 4/01/14 (Pre-refunded to 4/01/00)
1,000,000 City of Boston, Massachusetts, General Obligation Bonds,
1990 Series A, 7.375%, 2/01/10 2/00 at 102 A1*** 1,074,280
(Pre-refunded to 2/01/00)
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 2.9%
Chippewa Valley Schools, County of Macomb, State of Michigan,
1998 School Building and State and Refunding Bonds (General
Obligation - Unlimited Tax):
9,740,000 4.750%, 5/01/23 5/08 at 100 Aaa 8,914,340
11,175,000 5.000%, 5/01/27 5/08 at 100 Aaa 10,649,440
The Economic Development Corporation of the City of Lapeer,
Limited Obligation Revenue Bonds (Lapeer Health Services
Corporation Project), Series 1990:
2,915,000 8.250%, 2/01/04 (Pre-refunded to 2/01/00) 2/00 at 102 BBB*** 3,170,616
3,000,000 8.500%, 2/01/12 (Pre-refunded to 2/01/00) 2/00 at 102 BBB*** 3,275,610
2,000,000 8.625%, 2/01/20 (Pre-refunded to 2/01/00) 2/00 at 102 BBB*** 2,187,920
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.2%
7,685,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1990
Series A, 7.950%, 7/01/22 7/00 at 102 AA 8,091,075
(Alternative Minimum Tax)
Minneapolis/Saint Paul Housing Finance Board, Single Family
Mortgage Revenue Bonds (Minneapolis/ Saint Paul Family Housing
Program, Phase VIII), Series 1990A:
740,000 7.750%, 8/01/10 (Alternative Minimum Tax) 2/00 at 102 AAA 772,049
4,035,000 8.000%, 2/01/23 (Alternative Minimum Tax) 2/00 at 102 AAA 4,212,782
3,340,000 Minneapolis Community Development Agency, Limited Tax Supported
Development Revenue Bonds, 12/98 at 102 A- 3,483,253
Common Bond Fund Series 1988-1, 8.750%, 12/01/17 (Alternative Minimum Tax)
2,130,000 Minneapolis Community Development Agency, Limited Tax Supported
Development Revenue Bonds, 12/98 at 102 BBB+ 2,216,542
Common Bond Fund Series 1988-3, 8.500%, 12/01/08 (Alternative Minimum Tax)
2,480,000 Minneapolis Community Development Agency, Limited Tax Supported
Development Revenue Bonds, 12/99 at 102 A- 2,632,743
Common Bond Fund Series 1989-1, 8.250%, 6/01/19 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.5%
5,320,000 Coahoma-Clarksdale Housing Development Corporation, 1990 Multifamily
Mortgage Revenue Refunding 8/03 at 100 AAA 5,755,336
Bonds (Gooden Estates and McLaurin Arms Projects), Series A and B, 8.000%, 8/01/24
2,680,000 Greenwood-Leflore Housing Development Corporation, 1990 Multifamily
Mortgage Revenue Refunding 6/02 at 100 AA- 2,794,865
Bonds (Jones Apartment Projects), Series C, 7.950%, 8/01/22
1,605,000 Greenwood-Leflore Housing Development Corporation, 1990 Multifamily
Mortgage Revenue Refunding 2/01 at 100 AA- 1,663,775
Bonds (Ivory Apartment Projects), Series D, 7.950%, 2/01/22
1,685,000 Greenwood-Leflore Housing Development Corporation, 1990 Multifamily
Mortgage Revenue Refunding 3/02 at 100 AA- 1,753,259
Bonds (McNeace Apartment Projects), Series A, 7.950%, 8/01/22
2,640,000 Greenwood-Leflore Housing Development Corporation, 1990 Multifamily
Mortgage Revenue Refunding 8/01 at 100 AA- 2,752,570
Bonds (Bishop Apartment Project), Series B, 7.950%, 8/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.3%
2,500,000 Health and Educational Facilities Authority of the State of Missouri,
Health Facilities Revenue Bonds (SSM Health Care Projects), Series 1988A, 6/98 at 102 Aaa 2,557,850
7.750%, 6/01/16 (Pre-refunded to 6/01/98)
- ------------------------------------------------------------------------------------------------------------------------------------
Montana - 1.7%
15,595,000 Montana Board Of Housing, Single Family Program Bonds, 1995 Series B
(Federally Insured or Guaranteed Mortgage Loan), 12/05 at 102 AA+ 16,403,445
6.400%, 12/01/27 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nevada - 0.5%
$ 4,500,000 Housing Division, Single Family Mortgage Bonds, 1997 Series C-2
Senior Bonds, 5.750%, 4/01/29 (Alternative Minimum Tax) 4/07 at 102 Aaa $ 4,594,905
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 1.6%
3,060,000 Business Finance Authority of the State of New Hampshire, Water
Facility Revenue Bonds (Pennichuck 12/04 at 102 Aaa 3,375,211
Water Works, Inc. - 1994 Issue), Series A, 6.350%, 12/01/19
1,940,000 Business Finance Authority of the State of New Hampshire, Water
Facility Revenue Bonds (Pennichuck 12/04 at 102 Aaa 2,105,870
Water Works, Inc.), Series B, 6.450%, 12/01/16 (Alternative Minimum Tax)
3,850,000 New Hampshire Housing Finance Authority, Single Family Residential
Mortgage Bonds, 1990 Series A, 7/00 at 102 Aa 4,047,428
7.950%, 7/01/22 (Alternative Minimum Tax)
5,700,000 New Hampshire Housing Finance Authority, Single Family Residential
Mortgage Bonds, 1989 Series A, 7/99 at 102 Aa 5,969,325
7.900%, 7/01/22 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 1.1%
8,750,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991 C,
6.500%, 1/01/16 No Opt. Call Aaa 10,170,213
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.2%
2,155,000 New Mexico Mortgage Finance Authority, Single Family Mortgage
Program Bonds, 1997 Series F-2, 7/07 at 102 AAA 2,194,027
5.700%, 7/01/29 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 12.7%
4,605,000 Dormitory Authority of the State of New York, United Health
Services, Inc., FHA Insured Mortgage Revenue 2/00 at 102 AAA 4,946,783
Bonds, Series 1989, 7.350%, 8/01/29 (Pre-refunded to 2/01/00)
26,000,000 Dormitory Authority of the State of New York, City University System
Consolidated Revenue Bonds, 7/00 at 102 Aaa 28,383,680
Series 1990A, 7.625%, 7/01/20 (Pre-refunded to 7/01/00)
Dormitory Authority of the State of New York, State University
Educational Facilities, Revenue Bonds, Series 1990A:
19,965,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 21,748,673
7,250,000 6.500%, 5/15/19 (Pre-refunded to 5/15/00) 5/00 at 100 AAA 7,598,145
3,885,000 New York State Housing Finance Agency, Health Facilities Revenue Bonds
(New York City), 1990 Series A 11/00 at 102 BBB+ 4,256,367
Refunding, 8.000%, 11/01/08
18,815,000 New York State Housing Finance Agency, Health Facilities Revenue Bonds
(New York City), 1990 Series A 11/00 at 102 Aaa 20,876,371
Refunding, 8.000%, 11/01/08 (Pre-refunded to 11/01/00)
8,500,000 New York State Medical Care Facilities Finance Agency, Hospital and
Nursing Home FHA Insured Mortgage 8/98 at 102 AAA 8,758,145
Revenue Bonds, 1988 Series C, 7.600%, 2/15/08 (Pre-refunded to 8/15/98)
5,000,000 New York State Medical Care Facilities Finance Agency, St. Luke's-Roosevelt
Hospital Center FHA Insured 2/00 at 102 Aaa 5,384,500
Mortgage Revenue Bonds, 1989 Series B, 7.450%, 2/15/29 (Pre-refunded to 2/15/00)
8,000,000 The City of New York, General Obligation Bonds, Fiscal 1991 Series B,
9.500%, 6/01/03 No Opt. Call A3 9,717,920
10,000,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series G,
6.000%, 10/15/26 10/07 at 101 A3 10,553,200
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 1.4%
13,565,000 North Carolina Eastern Municipal Power Agency, Power System
Revenue Bonds, Refunding Series 1993 B, 1/03 at 100 Aaa 13,686,000
5.500%, 1/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 1.3%
2,135,000 State of North Dakota (North Dakota Housing Finance Agency), Single
Family Mortgage Program Bonds, 7/98 at 103 Aa2 2,204,174
1986 Series A, 8.375%, 7/01/19 (Alternative Minimum Tax)
10,000,000 City of Grand Fork, North Dakota, Sales Tax Revenue Bonds
(The Aurora Project), Series 1997A, 12/07 at 100 Aaa 10,211,600
5.625%, 12/15/29
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 1.8%
15,080,000 Ohio Air Quality Development Authority, State of Ohio, Collateralized
Pollution Control Revenue Refunding Bonds, Series 1992 (The Cleveland 6/02 at 103 Aaa 17,241,266
Electric Illuminating Company Project), 8.000%, 12/01/13
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oklahoma - 2.8%
$ 10,480,000 Central Oklahoma Transportation and Parking Authority (Oklahoma City,
Oklahoma), Parking System Revenue and Refunding Bonds, 7/06 at 100 Aaa $ 10,430,639
Series 1996, 5.250%, 7/01/16
1,310,000 Cleveland County Home Loan Authority (Oklahoma), Single Family Mortgage
Revenue Refunding Bonds, Series 1992, 8.375%, 2/01/12 8/01 at 102 A1 1,406,075
13,615,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds,
Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax) 6/01 at 102 Baa2 14,873,298
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 1.8%
3,500,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding Bonds,
Issue 1993, 5.800%, 7/01/18 7/03 at 102 Aaa 3,643,185
8,500,000 City of Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds,
Series 1993, 5.000%, 6/15/16 6/03 at 100 Aaa 8,195,190
4,665,000 Venango Housing Corporation, Multifamily Mortgage Revenue Refunding Bonds
(FHA Insured Mortgage/Evergreen Arbors Project), 12/03 at 100 AAA 4,981,754
1990 Series A, 8.000%, 2/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 3.2%
12,250,000 Rhode Island Health and Educational Building Corporation, Hospital
Financing Revenue Bonds, Lifespan 5/07 at 102 Aaa 12,452,493
Obligated Group Issue, Series 1996, 5.500%, 5/15/16
6,745,000 Rhode Island Housing and Mortgage Finance Corporation, Homeownership
Opportunity Bonds, Series 2, 7.750%, 4/01/22 4/00 at 102 AA+ 7,066,062
905,000 Rhode Island Housing and Mortgage Finance Corporation,
Series 3-B Bonds, 8.050%, 4/01/22 (Alternative Minimum Tax) 10/00 at 102 AA+ 948,675
6,000,000 Rhode Island Convention Center Authority, Refunding Revenue Bonds,
1993 Series C, 5.000%, 5/15/23 5/04 at 102 Aaa 5,719,920
The Housing Authority of the City of Providence, Rhode Island,
Multifamily Mortgage Revenue Bonds (FHA Insured Mortgage Loan -
Cathedral Square Apartments IIProject), 1992 Series:
435,000 7.375%, 4/01/10 (Alternative Minimum Tax) 4/02 at 105 AAA 474,289
1,060,000 7.400%, 4/01/20 (Alternative Minimum Tax) 4/02 at 105 AAA 1,156,259
3,050,000 7.500%, 10/01/32 (Alternative Minimum Tax) 4/02 at 105 AAA 3,320,535
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.5%
15,650,000 South Carolina Public Service Authority, Revenue Bonds,
1993 Refunding Series C, 5.000%, 1/01/25 1/03 at 102 Aaa 14,832,914
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.4%
3,500,000 Tennessee Housing Development Agency, Mortgage Finance Program Bonds,
1994 Series A, 6.900%, 7/01/25 (Alternative Minimum Tax) 7/04 at 102 A1 3,748,010
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 6.3%
8,000,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds
(Texas Utilities Electric Company Project), Series 1990A, 2/00 at 102 Baa1 8,605,680
8.125%, 2/01/20 (Alternative Minimum Tax)
5,950,000 Brazos River Authority (Texas), Collateralized Pollution Control
Revenue Bonds (Texas Utilities Electric Company Project), Series 1989A, 1/99 at 102 Baa1 6,209,361
8.250%, 1/01/19 (Alternative Minimum Tax)
4,925,000 The Cameron County Housing Finance Corporation, Single Family Mortgage
Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed 9/02 at 103 AAA 5,206,858
Securities Program), Series 1992, 6.750%, 3/01/26
3,000,000 El Paso Housing Finance Corporation, Multifamily Housing Revenue
Refunding Bonds (Las Flores Development Company Project), 1/00 at 103 AAA 3,155,580
Series 1990A, 7.500%, 3/20/25
6,000,000 Harris County, Texas, Health Facilities Development Corporation, Special
Facilities Revenue Bonds (Texas Medical Center Project), Series 1990, 5/00 at 102 Aaa 6,488,340
7.375%, 5/15/20 (Pre-refunded to 5/15/00)
10,000,000 Harris County Health Facilities Development Corporation, Special
Facilities Revenue Bonds (Texas Medical Center Project), 5/06 at 102 Aaa 10,546,700
Series 1996, 5.900%, 5/15/16
City of Houston, Texas, Water Conveyance System Contract,
Certificates of Participation, Series 1993 A-J:
5,490,000 6.800%, 12/15/10 No Opt. Call Aaa 6,504,717
2,000,000 6.800%, 12/15/11 No Opt. Call Aaa 2,372,820
7,500,000 Sabine River Authority of Texas (Texas Utilities Electric Company Project),
Series 1990A, 8.125%, 2/01/20 (Alternative Minimum Tax) 2/00 at 102 Baa1 8,067,825
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Texas (continued)
The Wood Glen Housing Finance Corporation, Mortgage Revenue
Refunding Bonds, Series 1990C (FHA Insured Mortgage Loan -
Section 8 Assisted Copperwood II Project):
$ 1,545,000 7.625%, 1/01/10 1/00 at 103 Aaa $ 1,628,877
1,250,000 7.650%, 7/01/23 1/00 at 103 Aaa 1,313,750
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.5%
540,000 Utah Housing Finance Agency, Single Family Mortgage Senior Bonds,
1989 Issue B (Federally Insured or Guaranteed Mortgage Loans), 7/99 at 102 AA 554,531
8.250%, 7/01/21 (Alternative Minimum Tax)
4,000,000 Intermountain Power Agency, Power Supply Revenue Refunding Bonds,
1996 Series D, 5.000%, 7/01/23 7/06 at 102 A1 3,802,000
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.9%
8,130,000 Capital Region Airport Commission, Richmond (Virginia), International
Airport Projects, Airport Revenue Bonds, Series 1995A, 5.625%, 7/01/20 7/05 at 102 Aaa 8,301,543
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 9.4%
7,195,000 State of Washington, Various Purpose General Obligation Bonds,
Series 1991A, 6.000%, 3/01/16 (Pre-refunded to 3/01/01) 3/01 at 100 Aa1*** 7,528,560
3,000,000 Washington Public Power Supply System, Nuclear Project No. 1,
Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/13 7/03 at 102 Aa1 3,104,700
11,135,000 Washington Public Power Supply System, Nuclear Project No. 1,
Refunding Revenue Bonds, Series 1989B, 1/00 at 102 Aaa 11,913,002
7.250%, 7/01/15 (Pre-refunded to 1/01/00)
9,115,000 Washington Public Power Supply System, Nuclear Project No. 1,
Refunding Revenue Bonds, Series 1989A, 7/99 at 102 Aaa 9,663,042
7.500%, 7/01/15 (Pre-refunded to 7/01/99)
21,700,000 Washington Public Power Supply System, Nuclear Project No. 2,
Refunding Revenue Bonds, Series 1990A, 7/00 at 102 Aaa 23,539,943
7.375%, 7/01/12 (Pre-refunded to 7/01/00)
11,340,000 Washington Public Power Supply System, Nuclear Project No. 2,
Refunding Revenue Bonds, Series 1994A, 5.000%, 7/01/09 7/04 at 102 Aaa 11,407,246
6,615,000 Washington Public Power Supply System, Nuclear Project No. 3,
Refunding Revenue Bonds, Series 1989A, 7/99 at 102 Aaa 6,993,047
7.250%, 7/01/16 (Pre-refunded to 7/01/99)
8,500,000 Washington Public Power Supply System, Nuclear Project No. 3,
Refunding Revenue Bonds Series 1998A, 5.125%, 7/01/18 7/08 at 102 Aa1 8,224,430
5,250,000 Everett School District No. 2, Snohomish County, Washington, Unlimited Tax
General Obligation Bonds, Series 1993, 6.200%, 12/01/12 12/03 at 102 Aaa 5,799,728
(Pre-refunded to 12/01/03)
2,500,000 City of Walla Walla, Washington, Water and Wastewater Revenue Bonds,
Series 1997, 5.000%, 8/01/17 8/07 at 100 Aaa 2,415,824
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 4.3%
11,835,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Series 1990 (Franciscan Health 3/00 at 102 Aaa 12,967,610
System, Inc. Project), 8.500%, 3/01/20 (Pre-refunded to 3/01/00)
Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Series 1996 (Aurora Medical Group, Inc. Project):
10,000,000 5.600%, 11/15/16 5/06 at 102 Aaa 10,220,100
15,000,000 5.750%, 11/15/25 5/06 at 102 Aaa 15,425,850
3,000,000 Housing Authority of the City of Milwaukee, Wisconsin, Multifamily
Housing Refunding Revenue Bonds, Series 1990 (FHA Insured Mortgage 6/00 at 102 Aa 3,125,580
Loan - The Blatz Apartments Project), 7.500%, 12/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
$ 879,840,000 Total Investments - (cost $870,188,738) - 97.7% 938,436,969
=============
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Temporary Investments in Short-Term Municipal Securities - 0.4%
$ 2,100,000 District of Columbia (Washington, D.C.), General Obligation General Fund
Recovery Bonds, Series 1991B, Variable Rate Demand Bonds, 4.350%, 6/01/03+ A-1+ $ 2,100,000
1,500,000 City of Valdez, Alaska, Marine Terminal Revenue Refunding Bonds (Exxon Pipeline
Company Project), 1993 Series B, Variable Rate Demand Bonds, 4.200%, 12/01/33+ VMIG-1 1,500,000
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,600,000 Total Temporary Investments - 0.4% 3,600,000
=============
Other Assets Less Liabilities - 1.9% 18,737,553
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 960,774,522
====================================================================================================================
* 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. Pre-refunded securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ The security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC. (NMO)
April 30, 1998
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alaska - 1.2%
$ 12,000,000 Alaska State Housing Finance Corporation, Governmental Purpose Bonds, 1995 Series A,
5.875%, 12/01/30 12/05 at 102 Aaa $ 12,457,920
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.3%
2,645,000 The Industrial Development Authority of the County of Pima, Single Family Mortgage Revenue Bonds,
Series 1997A, 6.250%, 11/01/29 (Alternative Minimum Tax) 5/07 at 105 27/32 AAA 2,881,728
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.3%
1,740,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Refunding Bonds,
1991 Series A (FHA Insured or VA Guaranteed Mortgage Loans),
8.000%, 8/15/11 8/01 at 103 AA 1,863,679
1,130,000 Fayetteville School District Number 1, General Obligation Bonds,
1998 Series B, 4.750%, 6/01/18 (WI) 12/04 at 100 Aaa 1,114,124
- ------------------------------------------------------------------------------------------------------------------------------------
California - 13.5%
3,500,000 California Various Purpose General Obligation Bonds, Series 1998,
5.000%, 2/01/21 (DD) 2/08 at 101 A1 3,352,930
6,500,000 California Health Facilities Financing Authority, Insured Revenue Bonds (Episcopal Homes
Foundation Project), Series 1985B, 7.850%, 7/01/15 7/98 at 100 1/2 A+ 6,570,655
4,000,000 California Health Facilities Financing Authority, Insured Health Facilities Revenue Bonds
(ValleyCare Hospital Corporation) 1989 Series A, 7.000%, 5/01/20
(Pre-refunded to 5/01/00) 5/00 at 102 A+*** 4,299,280
7,300,000 California Health Facilities Financing Authority, Insured Hospital Revenue Bonds
(Children's Hospital-San Diego), Series 1990, 6.500%, 7/01/20
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 7,803,554
6,810,000 California Health Facilities Financing Authority, Kaiser Permanente,
Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 5/03 at 102 A+ 6,892,469
6,050,000 California Housing Finance Agency, Multifamily Housing Revenue Bonds III, 1998 Series A,
5.450%, 8/01/28 8/08 at 102 Aaa 6,002,447
5,000,000 State of California, Veterans General Obligation Bonds, Series BH, 5.600%, 12/01/32
(Alternative Minimum Tax) 12/03 at 102 A1 5,039,650
12,250,000 State of California, Veterans General Obligation Bonds, Series BL, 5.300%, 12/01/12
(Alternative Minimum Tax) 12/08 at 101 A1 12,365,640
13,740,000 Certificates of Participation (1991 Financing Project), County of Alameda,
California, Alameda County Public Facilities Corporation, 6.000%, 9/01/21 9/06 at 102 Aaa 14,644,229
8,745,000 Bell Community Redevelopment Agency, Bell Redevelopment Area 1994, Tax Allocation
Refunding Bonds, 6.350%, 11/01/23 11/03 at 102 Aaa 9,586,356
2,500,000 The Community Redevelopment Agency of the City of Los Angeles, California, Central Business
District Redevelopment Project, Tax Allocation Refunding Bonds,
Series 1987-G, 6.750%, 7/01/10 7/98 at 101 BBB 2,599,075
12,080,000 Department of Water and Power of the City of Los Angeles, California, Electric
Plant Revenue Bonds, Issue of 1994, 5.375%, 2/15/34 2/04 at 102 Aa3 12,082,778
Department of Water and Power of the City of Los Angeles,
California, Electric Plant Revenue Bonds, Second Issue of 1993:
6,000,000 4.750%, 10/15/20 10/03 at 102 Aa3 5,532,540
6,815,000 5.400%, 11/15/31 11/03 at 102 Aa3 6,831,560
6,000,000 Department of Water and Power of the City of Los Angeles, Water Works
Refunding Revenue Bonds, Issue of 1992, 6.400%, 5/15/28 5/01 at 102 Aa 6,420,060
County of Orange, California, 1996 Recovery Certificates of Participation, Series A:
13,000,000 5.875%, 7/01/19 7/06 at 102 Aaa 13,674,700
3,450,000 6.000%, 7/01/26 7/06 at 102 Aaa 3,685,256
5,870,000 Sacramento Municipal Utility District, California, Electric Revenue
Refunding Bonds, 1993 Series G, 4.750%, 9/01/21 9/03 at 100 Aaa 5,395,998
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California (continued)
$ 5,000,000 San Joaquin Hills Transportation Corridor Agency, Toll Road Refunding Revenue Bonds,
Series 1997 A, 0.000%, 1/15/17 1/14 at 102 Aaa $ 3,221,450
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 4.1%
2,985,000 Colorado Housing and Finance Authority, Single Family Program Senior Bonds, 1990 Issue C
(Federally Insured or Guaranteed Mortgage Loans), 7.650%, 8/01/22
(Alternative Minimum Tax) 8/00 at 102 AA+ 3,121,176
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C:
1,200,000 5.950%, 11/15/98 (Alternative Minimum Tax) No Opt. Call Baa1 1,213,032
1,605,000 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,784,198
6,020,000 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 Baa1 6,508,704
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D:
1,045,000 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,179,669
3,955,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Baa 4,390,762
1,060,000 7.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 10 Aaa 1,152,527
3,940,000 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 4,205,911
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992B:
715,000 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 810,345
2,785,000 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 Baa1 3,081,213
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A:
3,240,000 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 3,628,152
9,010,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 9,907,756
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.2%
2,105,000 District of Columbia Housing Finance Agency, Collateralized Single Family Mortgage Revenue Bonds,
Series 1990 A, 8.100%, 12/01/23 (Alternative Minimum Tax) 12/00 at 102 AAA 2,266,559
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 3.0%
Orange County Housing Finance Authority, GNMA Collateralized
Mortgage Revenue Refunding Bonds, 1990 Series A:
3,290,000 7.500%, 7/01/10 7/00 at 103 Aaa 3,478,879
11,035,000 7.600%, 1/01/24 7/00 at 103 Aaa 11,765,076
10,430,000 Palm Beach County Health Facilities Authority, Hospital Revenue Refunding Bonds, Series 1988
(JFK Medical Center, Inc. Projects), 8.875%, 12/01/18
(Pre-refunded to 12/01/98) 12/98 at 102 N/R*** 10,934,604
3,625,000 Housing Finance Authority of Palm Beach County, Florida, Single Family Mortgage Revenue Bonds,
1990 Series B, 7.600%, 3/01/23 9/00 at 103 Aaa 3,838,331
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 8.1%
15,000,000 Illinois Development Finance Authority, Revenue Refunding Bonds, Series 1990A
(Columbus-Cuneo-Cabrini Medical Center), 8.500%, 2/01/15
(Pre-refunded to 2/01/00) 2/00 at 102 Baa2*** 16,378,050
5,210,000 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue Bonds
(Garden House of River Oaks West Development), Series 1992A,
6.875%, 1/01/20 1/03 at 102 A 5,477,377
1,845,000 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue Bonds
(Village Center Development), Series 1992C, 6.600%, 3/01/07 3/03 at 102 A 1,942,010
6,500,000 City of Chicago, Illinois, Gas Supply Refunding Revenue Bonds, 1995 Series A
(The Peoples Gas Light and Coke Company Project), 6.100%, 6/01/25 6/05 at 102 AA- 6,909,305
21,805,000 City of Chicago, Chicago-O'Hare International Airport, International Terminal Special
Revenue Bonds, Series 1990 A, 7.500%, 1/01/17 (Alternative Minimum Tax) 1/00 at 102 A 23,175,880
7,300,000 City of Chicago, Chicago-O'Hare International Airport, Special Facility Revenue Bonds
(American Airlines, Inc. Project), Series 1990A, 7.875%, 11/01/25
(Alternative Minimum Tax) 11/00 at 102 Baa2 7,936,852
3,945,000 City of Chicago, Sales Tax Revenue Bonds, Series 1997, 5.375%, 1/01/27 1/08 at 102 Aaa 3,930,364
4,000,000 Community College District No. 508, Cook County, Illinois,
Certificates of Participation, 8.750%, 1/01/06 No Opt. Call Aaa 5,015,640
2,320,000 City of Peoria, Peoria County, Illinois, City of Pekin, Tazewell and Peoria
Counties, Illinois, and City of Waukegan, Lake County, Illinois, Jointly,
GNMA Collateralized Mortgage Revenue Bonds, Series 1990, 7.875%, 8/01/22
(Alternative Minimum Tax) 8/00 at 103 AAA 2,436,812
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (continued)
$ 9,195,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois,
General Obligation Bonds, Series 1992A, 6.125%, 6/01/22 6/02 at 100 Aaa $ 9,623,027
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 5.5%
13,500,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds,
Series 1990 (Bartholomew County Hospital District), 8/00 at 102 Aaa 14,798,970
7.750%, 8/15/20 (Pre-refunded to 8/15/00)
3,510,000 Indiana Housing Finance Authority, Single Family Mortgage Revenue Bonds
(GNMA Collateralized Home Mortgage Program), 1990 Series D, 7/00 at 102 Aaa 3,673,917
7.800%, 1/01/22 (Alternative Minimum Tax)
10,000,000 Indiana State Office Building Commission, Capitol Complex Revenue Bonds,
Series 1990B (State Office Building I Facility), 7/00 at 102 Aaa 10,830,900
7.250%, 7/01/12 (Pre-refunded to 7/01/00)
The Indianapolis Local Public Improvement Bond Bank, Series 1992 D Bonds:
3,750,000 6.750%, 2/01/20 2/03 at 102 AA 4,133,813
5,500,000 6.500%, 2/01/22 5/98 at 100 AA 5,509,625
5,000,000 Columbus Multi-School Building Corporation, Bartholomew County, Indiana,
First Mortgage Bonds, 7.600%, 1/15/14 (Pre-refunded to 1/15/01) 1/01 at 102 N/R*** 5,503,550
10,080,000 The Trustees of Purdue University, Purdue University Student Fee Bonds,
Series M, 6.100%, 7/01/17 7/06 at 101 Aa2 10,810,094
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.8%
4,215,000 Iowa Finance Authority, Solid Waste Disposal Revenue Bonds, Series 1997
(IPSCO Project), 6.000%, 6/01/27 (Alternative Minimum Tax) No Opt. Call N/R 4,360,839
(Mandatory put 6/01/07)
3,310,000 Des Moines Aviation System Revenue Bonds, Series 1998A,
5.125%, 7/01/28 (WI) 7/08 at 100 Aaa 3,218,148
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.3%
1,500,000 Kentucky Economic Development Finance Authority, Health Care
Facilities Revenue Bonds, The Christian Church Homes of 5/08 at 102 BBB 1,452,420
Kentucky, 5.375%, 11/15/23
1,725,000 Kentucky Housing Corporation, Housing Revenue Bonds
(FHA Insured/VA Guaranteed), 1990 Series C 7/00 at 102 Aaa 1,825,619
Bonds, 8.100%, 1/01/22 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 0.6%
5,375,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed Securities Program), 8/00 at 102 Aaa 5,634,129
Series 1990A, 7.875%, 8/01/23 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Maine - 0.1%
1,355,000 Maine State Housing Authority, Single-Family Mortgage Acquisition Bonds,
1991 Series 1, 7.150%, 11/01/21 11/01 at 102 Aa1 1,433,969
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland - 0.4%
4,245,000 Community Development Administration, Department of Housing and
Community Development, State of Maryland, Single Family Program 4/00 at 102 Aa2 4,431,483
Bonds, 1990 Fifth Series, 7.700%, 4/01/15 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 7.2%
Massachusetts Bay Transportation Authority, General Transportation System Bonds, 1990 Series A:
7,500,000 7.000%, 3/01/10 (Pre-refunded to 3/01/00) 3/00 at 100 Aaa 7,889,775
10,800,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 11,680,200
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Daughters of Charity National Health
System-Carney Hospital Issue, Series C:
4,200,000 7.500%, 7/01/05 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 4,568,718
10,800,000 7.750%, 7/01/14 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 11,803,644
5,900,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds,
New England Medical Center Hospitals Issue, 7/02 at 102 Aaa 6,415,188
Series F, 6.625%, 7/01/25
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Goddard Memorial Hospital Issue, Series B:
3,090,000 9.000%, 7/01/15 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 3,456,505
4,795,000 9.000%, 7/01/15 7/00 at 102 Baa 5,250,525
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts (continued)
Massachusetts Water Resources Authority, General Revenue Bonds, 1990 Series A:
$ 8,450,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa $ 9,157,772
6,615,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 7,153,924
5,195,000 7.000%, 4/01/18 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 5,570,754
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 2.3%
8,500,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds
(Bay Medical Center), Series 1990A, 8.250%, 7/01/12 7/00 at 102 A3 9,327,645
4,500,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds
(The Detroit Medical Center Obligated Group), Series 1991A, 8/01 at 102 Aaa 5,016,150
7.500%, 8/15/11 (Pre-refunded to 8/15/01)
8,500,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (Waste
Management, Inc. Project), Series 1992, 6.625%, 12/01/12 12/02 at 102 Baa1 9,169,460
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.3%
3,305,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds,
1990 Series A, 7.950%, 7/01/22 (Alternative Minimum Tax) 7/00 at 102 AA 3,479,636
2,395,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds,
1990 Series C, 7.700%, 7/01/14 7/00 at 102 AA 2,512,571
2,405,000 The Dakota County Housing and Redevelopment Authority,
The Washington County Housing and Redevelopment Authority, and the 12/00 at 102 AAA 2,512,095
Stearns County Housing and Redevelopment Authority, Single Family
Residential Mortgage Revenue Bonds (GNMA), Series 1990, 7.850%, 12/01/30
(Alternative Minimum Tax)
8,845,000 City of Minneapolis, Minnesota and the Housing and Redevelopment Authority
of The City of Saint Paul, Minnesota, Health Care System Revenue Bonds 8/00 at 102 Aaa 9,745,952
(Health One Obligated Group), Series 1990C, 8.000%, 8/15/19
(Pre-refunded to 8/15/00)
3,775,000 The Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota, Sales Tax Revenue Refunding Bonds (Civic Center Project), 11/15 at 103 Aaa 4,584,285
Series 1996, 7.100%, 11/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.7%
865,000 Mississippi Home Corporation, Single Family Senior Revenue Refunding Bonds,
Series 1990A, 9.250%, 3/01/12 9/00 at 103 Aaa 924,010
5,500,000 Mississippi Home Corporation, Single Family Mortgage Revenue Bonds,
Series 1997D, Class 5, 5.500%, 7/01/29 (Alternative Minimum Tax) 7/07 at 105 Aaa 6,036,250
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 1.1%
Nevada Housing Division, Single Family Program Senior Bonds,
1990 Issue B (Federally Insured or Guaranteed Mortgage Loans):
2,330,000 7.850%, 10/01/10 (Alternative Minimum Tax) 4/00 at 102 AA+ 2,429,817
2,015,000 7.900%, 4/01/22 (Alternative Minimum Tax) 4/00 at 102 AA 2,092,336
6,000,000 State of Nevada, General Obligation, Limited Tax Bonds (Nevada Municipal
Bond Bank Project No. 52), Series July 1, 1996A, 5/06 at 101 AA*** 6,602,940
6.000%, 5/15/21 (Pre-refunded to 5/15/06)
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 0.7%
4,750,000 Pollution Control Financing Authority of Camden County (Camden County,
New Jersey), Solid Waste Disposal and Resource Recovery System No Opt. Call B2 4,753,135
Revenue Bonds, Series 1991C, 7.125%, 12/01/01 (Alternative Minimum Tax)
2,000,000 Pollution Control Financing Authority of Camden County (Camden County,
New Jersey), Solid Waste Disposal and Resource Recovery 12/01 at 102 B2 2,017,660
System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.9%
8,615,000 New Mexico Mortgage Finance Authority, Single Family Mortgage Program
Senior Bonds, 1990 Series A (Federally Insured or Guaranteed 9/00 at 102 AA 9,211,761
Mortgage Loans), 7.800%, 9/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 25.4%
6,080,000 Dormitory Authority of the State of New York, City University System
Consolidated Second General Resolution Revenue Bonds, No Opt.Call Baa1 6,437,443
Series 1990C, 9.250%, 7/01/99
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York (continued)
$ 15,000,000 Dormitory Authority of the State of New York, City University System
Consolidated Second General Resolution Revenue Bonds, No Opt. Call Baa1 $ 17,708,850
Series 1990D, 8.750%, 7/01/03
Dormitory Authority of the State of New York, State University
Educational Facilities, Revenue Bonds, Series 1989A:
3,195,000 7.125%, 5/15/17 (Pre-refunded to 5/15/99) 5/99 at 102 AAA 3,363,536
6,805,000 7.125%, 5/15/17 (Pre-refunded to 5/15/99) 5/99 at 102 Aaa 7,163,964
9,010,000 Dormitory Authority of the State of New York, State University Educational
Facilities, Revenue Bonds, Series 1989B, 7.250%, 5/15/15 5/00 at 102 Aaa 9,736,296
(Pre-refunded to 5/15/00)
5,765,000 Dormitory Authority of the State of New York, Mental Health Services
Facilities Improvement, Revenue Bonds, Series 1997B, 5.500%, 8/15/17 2/07 at 102 A- 5,815,847
27,000,000 Dormitory Authority of the State of New York, Mental Health Services
Facilities Improvement Revenue Bonds, Series 1997A, 5.750%, 2/15/27 2/07 at 102 A- 27,785,160
13,250,000 New York State Dormitory Authority, Mental Health Services Authority
Improvement Bonds, Series 1996-B, 5.375%, 2/15/26 2/06 at 102 A- 13,032,833
4,500,000 New York State Energy Research and Development Authority, Gas Facilities
Revenue Bonds, Series C (The Brooklyn Union Gas Company 7/03 at 102 Aaa 4,567,455
Project), 5.600%, 6/01/25 (Alternative Minimum Tax)
New York State Housing Finance Agency, Health Facilities Revenue
Bonds (New York City), 1990 Series A Refunding:
16,580,000 8.000%, 11/01/08 (Pre-refunded to 11/01/00) 11/00 at 102 Aaa 18,396,505
3,420,000 8.000%, 11/01/08 11/00 at 102 BBB+ 3,746,918
3,795,000 New York State Medical Care Facilities Finance Agency, Hospital and
Nursing Home Insured Mortgage Revenue Bonds, 1987 Series A, 5/98 at 102 Aa 3,882,019
8.000%, 2/15/27
9,860,000 New York State Medical Care Facilities Finance Agency, Albany Medical
Center Hospital Project Revenue Bonds, 1987 Series A, 8.000%, 2/15/28 8/98 at 102 AAA 10,159,547
5,000,000 New York State Medical Care Facilities Finance Agency, Health Center
Projects Revenue Bonds (Secured Mortgage Program), 1995 Series A, 11/05 at 102 Aa 5,529,600
6.375%, 11/15/19
5,000,000 New York State Medical Care Facilities Finance Agency, Hospital Medical
Center Secured Hospital, Revenue Bonds, Series 1995-A, 2/05 at 102 BBB+*** 5,731,350
6.850%, 2/15/17 (Pre-refunded to 2/15/05)
7,150,000 New York State Thruway Authority, General Revenue Bonds, Series C,
6.000%, 1/01/25 1/05 at 102 Aaa 7,585,507
10,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series G,
5.750%, 2/01/20 2/06 at 101 1/2 A3 10,299,900
21,715,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series I,
5.875%, 3/15/18 3/06 at 101 1/2 A3 22,647,008
10,000,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series H,
6.125%, 8/01/25 8/07 at 101 A3 10,733,800
The City of New York, General Obligation Bonds, Fiscal 1995 Series F:
6,700,000 6.625%, 2/15/25 (Pre-refunded to 2/15/05) 2/05 at 101 A3*** 7,551,168
50,000 6.625%, 2/15/25 2/05 at 101 A3 54,923
2,550,000 New York City Municipal Water Finance Authority, Water and Sewer
System Revenue Bonds, Fiscal 1993 Series A, 5.750%, 6/15/18 6/02 at 101 1/2 Aaa 2,633,385
New York City Municipal Water Finance Authority (New York),
Water and Sewer System Revenue Bonds, Fiscal 1991 Series A:
12,875,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) 6/00 at 101 1/2 Aaa 13,944,140
13,500,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) 6/00 at 100 A2 14,032,575
13,515,000 New York City Transitional Finance Authority, Future Tax Secured
Bonds Fiscal 1998 Series A, 5.000%, 8/15/27 8/07 at 101 AA 12,837,223
10,000,000 The Port Authority of New York and New Jersey, Special Project Bonds,
Series 6, JFK International Air Terminal LLC Project, 12/07 at 102 Aaa 10,341,600
5.750%, 12/01/22 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 1.5%
10,500,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds,
Refunding Series 1991 A, 6.250%, 1/01/03 1/02 at 102 Baa1 11,004,105
4,065,000 North Carolina Housing Finance Agency, Single Family Revenue Bonds,
Series-M (1985 Resolution), 7.850%, 9/01/28 (Alternative Minimum Tax) 3/00 at 102 Aa 4,265,039
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ohio - 0.1%
$ 1,000,000 State of Ohio (Ohio Higher Educational Facility Commission), Higher
Educational Facility Revenue Bonds 12/07 at 101 Aaa $ 1,002,350
(University of Dayton 1997 Project), 5.400%, 12/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 1.4%
8,500,000 Trustees of the Tulsa Municipal Airport Trust, 1988 Adjustable
Rate Revenue Obligations, 7.375%, 12/01/20 (Alternative Minimum Tax) 12/00 at 102 Baa2 9,156,795
5,000,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds,
Series 1991, 7.600%, 12/01/30 (Alternative Minimum Tax) 6/01 at 102 Baa2 5,462,100
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 0.3%
3,170,000 Allegheny County Residential Finance Authority, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed Securities Program), 1990 Series M, 6/00 at 102 Aaa 3,328,944
7.950%, 6/01/23 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 1.8%
5,000,000 Rhode Island Health and Educational Building Corporation, Higher Education
Facility Revenue Bonds, Johnson and Wales University (Series 1990), 4/00 at 102 AAA 5,485,400
8.375%, 4/01/20 (Pre-refunded to 4/01/00)
11,720,000 Rhode Island Housing and Mortgage Finance Corporation, Homeownership
Opportunity Bonds, Series 2, 7.750%, 4/01/22 4/00 at 102 AA+ 12,277,872
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.7%
3,640,000 South Carolina Jobs-Economic Development Authority, Economic Development
Revenue Bonds (Carolinas Hospital System Project), Series 1992, 9/02 at 102 N/R*** 4,137,588
7.550%, 9/01/22 (Pre-refunded to 9/01/02)
2,450,000 Three Rivers Solid Waste Authority (South Carolina), Solid Waste
Disposal Facilities Revenue Bonds, Series 1997, 5.300%, 1/01/27 1/07 at 102 Aaa 2,428,391
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.5%
4,750,000 The Health and Educational Facilities Board of the Metropolitan
Government of Nashville and Davidson County, Tennessee, Revenue 7/03 at 102 N/R 4,688,535
Refunding Bonds, Series 1998 (The Blakeford at Green Hills), 5.650%, 7/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 6.8%
4,765,517 General Services Commission (an Agency of the State of Texas), as Lessee,
Participation Interests, 7.500%, 9/01/22 9/99 at 101 1/2 A 5,178,259
6,000,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds,
Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 12/00 at 102 Baa2 6,474,000
(Alternative Minimum Tax)
Arlington Independent School District (Tarrant County, Texas),
Unlimited Tax Refunding and Improvement Bonds, Series 1995:
12,650,000 0.000%, 2/15/12 2/05 at 67 5/16 Aaa 5,990,028
12,640,000 0.000%, 2/15/13 2/05 at 62 15/16 Aaa 5,577,021
20,500,000 Dallas-Fort Worth International Airport Facility Improvement Corporation,
American AIrlines, Inc. Revenue Bonds, Series 1990, 11/00 at 102 Baa2 22,084,240
7.500%, 11/01/25 (Alternative Minimum Tax)
3,310,000 El Paso Housing Finance Corporation, Single Family Mortgage Revenue
Refunding Bonds, Series 1991A, 8.750%, 10/01/11 4/01 at 103 A2 3,698,693
1,145,000 County of Fort Bend, Texas, Municipal Utility District No. 42,
5.875%, 9/01/21 9/06 at 100 Aaa 1,195,861
3,885,000 Houston Independent School District Public Facilities Corporation Lease
Revenue Bonds, Series 1998A, Cesar E Chavez, 0.000%, 9/15/12 (DD) No Opt. Call Aaa 1,818,763
15,130,000 Lubbock Health Facilities, Development Corporation, Hospital Revenue Bonds
(Methodist Hospital, Lubbock, Texas), Series 1990, 12/00 at 102 Aaa 16,536,334
7.250%, 12/01/19 (Pre-refunded to 12/01/00)
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.2%
2,000,000 Tooele County, Hazardous Waste Disposal Revenue Bonds
(Laidlaw Inc/USPCI Clive PJ), Series 1995, 8/05 at 102 BBB+ 2,190,140
6.750%, 8/01/10 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 1.1%
4,000,000 Virginia Housing Development Authority, Commonwealth Mortgage Revenue Bonds,
1992 Series B Subseries B-4, 6.550%, 1/01/27 1/02 at 102 Aa1 4,182,040
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Virginia (continued)
$ 2,000,000 Virginia Housing Development Authority, Multi-Family Housing Bonds,
1992 Series D, 7.050%, 5/01/18 5/02 at 102 Aa1 $ 2,136,260
4,495,000 Industrial Development Authority of the County of Henrico, Virginia,
Adjustable Rate Revenue Bonds (St. Mary's Hospital Project), Series 1985C, 8/00 at 102 A+*** 4,863,725
7.500%, 9/01/07 (Pre-refunded to 8/01/00)
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 5.0%
865,000 Washington Public Power Supply System, Nuclear Project No. 1 Revenue Bonds,
14.375%, 7/01/01 No Opt.Call Aaa 1,005,865
5,430,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding
Revenue Bonds, Series 1990A, 7.600%, 7/01/05 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 5,915,496
3,225,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding
Revenue Bonds, Series 1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 3,450,331
3,030,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding
Revenue Bonds, Series 1989A, 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 3,212,467
9,775,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding
Revenue Bonds, Series 1991A, 6.875%, 7/01/17 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 10,675,864
Washington Public Power Supply System, Nuclear Project No. 2 Refunding
Revenue Bonds, Series 1990A:
6,835,000 7.625%, 7/01/08 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 7,449,603
13,240,000 7.375%, 7/01/12 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 14,362,620
3,650,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding
Revenue Bonds, Series 1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 3,905,023
- ------------------------------------------------------------------------------------------------------------------------------------
Wyoming - 0.3%
2,800,000 Town of Jackson, Wyoming, National Rural Utilities Cooperative Finance
Corporation, Guaranteed Gas Supply Revenue Bonds (Lower Valley 5/07 at 102 AA- 2,881,141
Power and Light, Inc. Project), Series 1997B, 5.875%, 5/01/26
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.3%
3,000,000 Puerto Rico Public Buildings Authority, Guaranteed Public Education and
Health Facilities Bonds, Series M, Converted Floaters, 4.800%, 7/01/16 7/03 at 101 1/2 A 3,039,600
- ------------------------------------------------------------------------------------------------------------------------------------
$ 958,480,517 Total Investments - (cost $919,592,769) - 99.0% 998,169,518
=============
Other Assets Less Liabilities - 1.0% 10,377,129
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,008,546,647
====================================================================================================================
* 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. Pre-refunded 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 (note 1). (DD)
Security purchased on a delayed delivery basis (note 1).
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
April 30, 1998
(Unaudited)
<CAPTION>
Performance Plus Advantage Opportunity
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in municipal securities, at market value (note 1) $1,277,771,712 $938,436,969 $ 998,169,518
Temporary investments in short-term municipal securities,
at amortized cost, which approximates market value (note 1) 1,400,000 3,600,000 --
Cash 85,263 199,609 800,947
Receivables:
Interest 26,451,947 20,024,725 20,029,074
Investments sold 3,855,611 2,810,298 13,352,127
Other assets 88,215 45,325 47,355
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,309,652,748 965,116,926 1,032,399,021
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Payable for investments purchased 1,917,380 -- 19,088,734
Accrued expenses:
Management fees (note 6) 664,768 495,379 519,204
Other 326,130 248,127 364,728
Preferred share dividends payable 111,580 77,381 97,013
Common share dividends payable 4,832,365 3,521,517 3,782,695
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 7,852,223 4,342,404 23,852,374
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $1,301,800,525 $960,774,522 $1,008,546,647
====================================================================================================================================
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 59,658,824 42,427,917 45,032,088
====================================================================================================================================
Net asset value per Common share outstanding (net assets less Preferred shares
at liquidation value, divided by Common shares
outstanding) $ 15.12 $ 15.57 $ 15.73
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Six Months Ended April 30, 1998
(Unaudited)
<CAPTION>
Performance Plus Advantage Opportunity
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income (note 1) $40,557,313 $30,056,483 $32,260,740
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 6) 4,017,518 2,993,961 3,136,920
Preferred shares - auction fees 495,891 371,917 351,233
Preferred shares - dividend disbursing agent fees 19,836 19,836 12,808
Shareholders' servicing agent fees and expenses 118,966 69,442 78,403
Custodian's fees and expenses 76,529 60,128 63,128
Directors' fees and expenses (note 6) 5,998 4,326 4,547
Professional fees 11,360 10,777 10,861
Shareholders' reports - printing and mailing expenses 131,687 92,478 100,647
Stock exchange listing fees 26,381 18,272 19,237
Investor relations expense 58,223 40,690 43,803
Other expenses 29,460 21,876 22,899
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses 4,991,849 3,703,703 3,844,486
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 35,565,464 26,352,780 28,416,254
- -----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions (notes 1 and 4) (827,640) 7,517 465,924
Net change in unrealized appreciation or depreciation of investments (5,096,458) (4,574,726) (4,215,501)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (5,924,098) (4,567,209) (3,749,577)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $29,641,366 $21,785,571 $24,666,677
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
(Unaudited)
<CAPTION>
Performance Plus Advantage Opportunity
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
4/30/98 10/31/97 4/30/98 10/31/97 4/30/98 10/31/97
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income $ 35,565,464 $ 73,434,381 $ 26,352,780 $ 53,688,593 $ 28,416,254 $ 57,903,551
Net realized gain (loss) from
investment transactions
notes 1 and 4) (827,640) 853,940 7,517 946,565 465,924 1,806,219
Net change in unrealized appreciation
or depreciation of investments (5,096,458) 7,720,715 (4,574,726) 7,309,164 (4,215,501) 6,812,086
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 29,641,366 82,009,036 21,785,571 61,944,322 24,666,677 66,521,856
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (28,935,619) (59,163,226) (21,088,964) (43,220,811) (22,695,337) (46,488,963)
Preferred shareholders (6,884,063) (14,091,748) (5,115,660) (10,466,289) (5,523,156) (11,717,683)
From accumulated net realized gains from investment transactions:
Common shareholders -- -- -- -- (1,234,583) --
Preferred shareholders -- -- -- -- (310,600) --
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (35,819,682) (73,254,974) (26,204,624) (53,687,100) (29,763,676) (58,206,646)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 3,782,017 4,808,086 3,135,486 2,145,347 2,441,629 1,899,633
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets (2,396,299) 13,562,148 (1,283,567) 10,402,569 (2,655,370) 10,214,843
Net assets at
beginning of period 1,304,196,824 1,290,634,676 962,058,089 951,655,520 1,011,202,017 1,000,987,174
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $1,301,800,525 $1,304,196,824 $960,774,522 $962,058,089 $1,008,546,647 $1,011,202,017
===================================================================================================================================
Balance of undistributed net investment
income at end of period $ 1,121,230 $ 1,375,448 $ 1,205,740 $ 1,057,584 $ 960,532 $ 762,771
===================================================================================================================================
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 Performance Plus Municipal Fund,
Inc. (NPP), Nuveen Municipal Advantage Fund, Inc. (NMA) and Nuveen Municipal
Market Opportunity Fund, Inc. (NMO).
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
generally accepted accounting principles.
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, 1998, Performance Plus and Opportunity had outstanding when-issued and
delayed delivery purchase commitments of $1,917,380 and $9,624,603,
respectively. Municipal Advantage had no such outstanding purchase commitments.
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 Common share for Performance Plus and
$.01 per Common share for Advantage and Opportunity. 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.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly 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 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, if any, 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.
<PAGE>
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 seven days, as set by the auction agent.
The number of shares outstanding, by Series and in total, for each Fund is as
follows:
<TABLE>
<CAPTION>
Performance
Plus Advantage Opportunity
- ---------------------------------------------------------------------------------------------------------
<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 F 4,000 3,000 4,000
- ---------------------------------------------------------------------------------------------------------
Total 16,000 12,000 12,000
=========================================================================================================
</TABLE>
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap, 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, 1998.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles 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.
2. Fund Shares
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
Performance Plus Advantage
- ---------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
4/30/98 10/31/97 4/30/98 10/31/97
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of
distributions 242,086 313,402 195,646 135,025
===============================================================================================================
<CAPTION>
Opportunity
- ---------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended
4/30/98 10/31/97
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares issued to shareholders
due to reinvestment of
distributions 150,925 119,092
===============================================================================================================
</TABLE>
3. Distributions to Common Shareholders
On May 1, 1998, the Funds declared Common share dividend distributions from
their tax-exempt net investment income which were paid on June 1, 1998, to
shareholders of record on May 15, 1998, as follows:
<TABLE>
<CAPTION>
Performance
Plus Advantage Opportunity
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Dividend per share $.0780 $.0830 $.0840
=========================================================================================================
</TABLE>
<PAGE>
4. Securities Transactions
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended April
30, 1998, were as follows:
<TABLE>
<CAPTION>
Performance
Plus Advantage Opportunity
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases:
Investments in municipal securities $105,797,812 $36,921,311 $64,287,256
Temporary municipal investments 109,005,000 64,510,000 14,100,000
Sales and Maturities:
Investments in municipal securities 96,726,060 34,990,720 57,776,391
Temporary municipal investments 111,505,000 67,160,000 14,100,000
=========================================================================================================
</TABLE>
At April 30, 1998, 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, 1997, the Funds' last fiscal year end, the Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
<TABLE>
<CAPTION>
Performance
Plus Advantage
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Expiration year:
2001 $4,575,138 $ 837,674
2002 -- 501,699
2003 1,471,114 --
- ---------------------------------------------------------------------------------------------------------
Total $6,046,252 $1,339,373
=========================================================================================================
</TABLE>
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 1998, were as follows:
<TABLE>
<CAPTION>
Performance
Plus Advantage Opportunity
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized:
appreciation $74,960,253 $69,281,035 $78,904,112
depreciation (1,556,053) (1,032,804) (327,363)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $73,404,200 $68,248,231 $78,576,749
=========================================================================================================
</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
as follows:
<TABLE>
<CAPTION>
Average Daily Net Asset Value Management Fee
- -----------------------------------------------------------------------------------------------------------
<S> <C>
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
===========================================================================================================
</TABLE>
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, 1998, net assets consisted of:
<TABLE>
<CAPTION>
Performance
Plus Advantage Opportunity
<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 596,588 424,279 450,321
Paid-in surplus 833,556,072 592,228,128 628,095,411
Balance of undistributed net investment income 1,121,230 1,205,740 960,532
Accumulated net realized gain (loss) from investment transactions (6,877,565) (1,331,856) 463,634
Net unrealized appreciation of investments 73,404,200 68,248,231 78,576,749
- -----------------------------------------------------------------------------------------------------------------
Net assets $1,301,800,525 $960,774,522 $1,008,546,647
=================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
=================================================================================================================
</TABLE>
8. Investment Composition
At April 30, 1998, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
<TABLE>
<CAPTION>
Performance
Plus Advantage Opportunity
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Education and Civic Organizations 1% 4% 4%
Health Care 9 7 5
Housing/Multifamily 3 4 2
Housing/Single Family 13 10 12
Tax Obligation/General 8 5 8
Tax Obligation/Limited 13 5 15
Transportation 5 6 13
U.S. Guaranteed 29 39 33
Utilities 14 14 6
Water and Sewer 4 5 1
Other 1 1 1
- --------------------------------------------------------------------------------------------------------
100% 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 (64% for Performance Plus, 65% for Advantage and 48% for
Opportunity).
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>
Investment Operations Less Distributions
Net Net
Net Realized/ Investment Investment
Beginning Net Unrealized Income Income
Net Asset Investment Investment To Common To Preferred
Value Income Gain (Loss) Total Shareholders Shareholders+
<S> <C> <C> <C> <C> <C> <C>
Performance Plus
Six Months Ended
4/30/98 $15.22 $ .60 $ (.09) $ .51 $ (.49) $(.12)
Year Ended 10/31:
1997 15.07 1.24 .15 1.39 (1.00) (.24)
1996 15.21 1.27 (.12) 1.15 (1.04) (.25)
1995 14.40 1.32 .85 2.17 (1.08) (.28)
1994 15.95 1.32 (1.53) (.21) (1.10) (.24)
1993 14.93 1.36 1.07 2.43 (1.20) (.21)
<CAPTION>
Advantage
<S> <C> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 15.68 .62 (.11) .51 (.50) (.12)
Year Ended 10/31:
1997 15.48 1.27 .21 1.48 (1.03) (.25)
1996 15.57 1.29 (.07) 1.22 (1.05) (.26)
1995 14.60 1.33 1.01 2.34 (1.09) (.28)
1994 16.38 1.33 (1.76) (.43) (1.13) (.22)
1993 15.13 1.39 1.34 2.73 (1.25) (.21)
<CAPTION>
Opportunity
<S> <C> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 15.85 .63 (.09) .54 (.50) (.12)
Year Ended 10/31:
1997 15.66 1.29 .20 1.49 (1.04) (.26)
1996 15.77 1.30 (.10) 1.20 (1.05) (.26)
1995 14.69 1.33 1.12 2.45 (1.09) (.28)
1994 16.58 1.33 (1.81) (.48) (1.13) (.23)
1993 15.37 1.39 1.28 2.67 (1.23) (.21)
<PAGE>
<CAPTION>
Total Returns
Capital Capital
Gains Gains Ending
To Common To Preferred Net Asset Ending Based on
Shareholders Shareholders+ Total Value Market Value Market Value**
<S> <C> <C> <C> <C> <C> <C>
Performance Plus
Six Months Ended
4/30/98 $-- $-- $ (.61) $15.12 $15.5625 7.02%
Year Ended 10/31:
1997 -- -- (1.24) 15.22 15.0000 5.94
1996 -- -- (1.29) 15.07 15.1250 6.17
1995 -- -- (1.36) 15.21 15.2500 22.77
1994 -- -- (1.34) 14.40 13.3750 (13.56)
1993 -- -- (1.41) 15.95 16.6250 19.30
<CAPTION>
Advantage
<S> <C> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 -- -- (.62) 15.57 15.8750 2.74
Year Ended 10/31:
1997 -- -- (1.28) 15.68 15.9375 12.57
1996 -- -- (1.31) 15.48 15.1250 7.04
1995 -- -- (1.37) 15.57 15.1250 20.69
1994 -- -- (1.35) 14.60 13.5000 (14.66)
1993 (.02) -- (1.48) 16.38 17.0000 20.38
<CAPTION>
Opportunity
<S> <C> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 (.03) (.01) (.66) 15.73 15.9375 2.14
Year Ended 10/31:
1997 -- -- (1.30) 15.85 16.1250 13.01
1996 -- -- (1.31) 15.66 15.2500 8.82
1995 -- -- (1.37) 15.77 15.0000 21.98
1994 (.04) (.01) (1.41) 14.69 13.2500 (17.27)
1993 (.02) -- (1.46) 16.58 17.2500 20.86
<PAGE>
<CAPTION>
Total Returns Ratios/Supplemental Data
Ratio of Net
Ratio of Investment
Ending Expenses to Income to Portfolio
Based on Net Net Assets Average Average Turnover
Asset Value** (000) Net Assets++ Net Assets++ Rate
<S> <C> <C> <C> <C> <C>
Performance Plus
Six Months Ended
4/30/98 2.54% $1,301,801 .77%* 5.47%* 8%
Year Ended 10/31:
1997 7.89 1,304,197 .77 5.69 12
1996 6.15 1,290,635 .78 5.83 15
1995 13.58 1,289,804 .78 6.08 7
1994 (2.92) 1,240,637 .79 6.01 12
1993 15.42 1,325,150 .76 6.04 4
<CAPTION>
Advantage
<S> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 2.48 960,775 .77* 5.49* 4
Year Ended 10/31:
1997 8.20 962,058 .78 5.64 8
1996 6.37 951,656 .78 5.72 13
1995 14.62 954,277 .78 5.98 4
1994 (4.16) 913,355 .79 5.88 10
1993 17.34 983,557 .77 6.03 13
<CAPTION>
Opportunity
<S> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 2.61 1,008,547 .76* 5.64* 6
Year Ended 10/31:
1997 8.12 1,011,202 .77 5.78 20
1996 6.15 1,000,987 .77 5.81 19
1995 15.30 1,005,798 .76 6.04 13
1994 (4.57) 957,443 .78 5.96 18
1993 16.53 1,037,592 .76 6.05 13
* Annualized.
** 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.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</TABLE>
<PAGE>
Building Better Portfolios with Nuveen
Nuveen Family
of Mutual Funds
Nuveen offers a variety of funds designed to help you reach your financial
goals.
Growth Funds
Nuveen Rittenhouse Growth Fund
Growth and
Income Funds
European Value Fund
Growth and
Income Stock Fund
Balanced Municipal
and Stock Fund
Balanced Stock
and Bond Fund
Municipal
Bond Funds
National Funds
Long-Term
Insured
Intermediate-Term
Limited Term
State Funds
Alabama
Arizona
California
Colorado
Connecticut
Florida
Georgia
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Missouri
New Jersey
New Mexico
New York
North Carolina
Ohio
Pennsylvania
South Carolina
Tennessee
Virginia
Wisconsin
Reducing the impact of taxes and moderating risk are important goals for many
risk-sensitive investors seeking to build better portfolios. For these
investors, a tax-efficient, risk-resistant investment portfolio often forms the
foundation of a carefully crafted financial plan for building and sustaining
wealth. Nuveen is committed to providing investors and their financial advisers
with a range of products and investment tools to help build better portfolios.
EXCHANGE-TRADED FUNDS
Nuveen Exchange-Traded Funds offer investors actively managed portfolios of
investment-grade quality municipal bonds. The fund shares are listed and traded
on the New York and American stock exchanges. Exchange-traded funds provide the
investment convenience, price visibility and liquidity of common stocks.
MUTUAL FUNDS
Nuveen Mutual Funds offer investors access to the Nuveen family of Premier
Advisers(sm), including Nuveen Advisory Corp., Institutional Capital Corp. and
Rittenhouse Financial Services. Our equity, balanced and income funds seek
to provide consistent performance, time-tested strategies to reduce risk and
experienced, professional management.
PRIVATE ASSET MANAGEMENT
Rittenhouse Financial Services and Nuveen Asset Management offer comprehen-sive,
customized investment management solutions to investors with assets of $250,000
or more to invest. A range of actively managed growth, balanced and municipal
income-oriented portfolios are available, all based upon a disciplined
investment philosophy.
UNIT TRUSTS
Nuveen Unit Trusts are fixed portfolios of quality securities that are a
convenient, attractive alternative to purchasing individual securities. They
provide low-cost diversification to reduce risk, experienced, professional
security selection and surveillance and daily liquidity at that day's net asset
value for quick access to your assets.
MUNIPREFERRED(R)
Nuveen MuniPreferred offers investors a AAA-rated investment with an attractive
tax-free yield for the cash reserves portion of an investment portfolio.
MuniPreferred shares are backed 2-to-1 by the long-term portfolios of Nuveen
dual-class exchange-traded funds and are available for national as well as a
wide variety of state-specific portfolios.
<PAGE>
Fund Information
Board of Trustees
Robert P. Bremner
Lawrence H. Brown
Anthony T. Dean
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
Fried, Frank, Harris,
Shriver & Jacobson
Washington, D.C.
Independent Auditors
Ernst & Young LLP
Chicago, IL
Year 2000
The concern that computer systems may have problems processing date-related
information in the year 2000 and beyond has challenged businesses and
organizations to review thoroughly all aspects of their operations. We have
undertaken just such an approach at Nuveen in preparation for the new
millennium. Over the last 10 years, our trading, fund management and pricing
systems at Nuveen - the systems that directly effect our investors and their
financial advisers - have been updated or replaced to address the Year 2000
concerns. We continue to work closely with our transfer agent, custodian and
other service partners to monitor readiness and address other remaining systems
issues. Our initial testing indicates we are on schedule and we have targeted
year-end 1998 to complete verification of vendor compliance and service partner
readiness. However, we can give no complete assurance at this time that the
steps we have taken will be sufficient to prevent any problems that would impact
the Nuveen Exchange-Traded Funds.
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended April 30, 1998. 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.
Since our founding in 1898, John Nuveen &Co. has been synonymous with
investments that withstand the test of time. Today, we offer a broad range of
investments designed for risk-sensitive individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them maintain the lifestyle they currently enjoy.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to ensure that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of products and services to
help meet your unique circumstances and financial planning needs. Our equity,
balanced, and income funds, along with our unit trusts and private asset
management, can form the foundation of a tax-efficient and risk-resistant
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you build and sustain your long-term financial
security. Or call us at (800) 257-8787 for more information, including a
prospectus where applicable. Please read that information carefully before you
invest.
Graphic:
1898 1998
NUVEEN
OUR SECOND CENTURY
helping investors sustain the wealth of a lifetime.(tm)
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
FSA-2.4.98
