Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN MUNICIPAL ADVANTAGE FUND, INC.
NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC.
ANNUAL REPORT/OCTOBER 31, 1995
Photographic image of man seated at breakfast table with wife standing behind
him.
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Photographic image of Nuveen Research Department. Four people around a table
working.
Research: a foundation
Your financial plan is in place. You and your adviser have made asset
allocation decisions. For the tax-free portion of your portfolio, you want
dependable income, safety of principal, and diversification. Solid, reliable
Nuveen research helps to keep your tax-free investments on the path you have
chosen.
Paul Williams, Vice President and Manager of Investment Strategies and
Research, emphasizes fundamental research as a strategy for finding value.
<PAGE>
The strength of Nuveen's Research Department is illustrated by the numerous
awards and press coverage we receive. Annual industry polls consistently
recognize the quality and depth of Nuveen Research.
Photographic image of a grouping of awards/statuettes.
At Nuveen, we believe that attention to detail combined with years of
experience is the foundation for sound research. Sound research means finding
quality bonds that deliver timely and dependable income over many decades.
Beyond this, it means adding value by identifying bonds whose credit strengths
are not yet understood by the market.
USING RESEARCH TO TRACK QUALITY AND VALUE
With tens of thousands of bonds available for investment today, the municipal
market is one of the nation's largest--and most complex--securities markets.
At the same time, the number of analysts devoted to researching the municipal
market is comparatively small. While more than 12,000 analysts at nearly 2,000
firms and investment organizations research the 7,500 common stocks available
in the equity market, approximately 1,000 analysts at 400 firms and rating
agencies cover 60,000 municipal bond issues.
Selecting those bonds that will outperform the market and help you achieve
your investment goals depends upon an ability to analyze and understand
complexities ranging from the demand for a new highway or airport to the
impact of an industry closure on the financial position of a town's water and
sewer system.
At Nuveen, we can provide this depth because we have the largest research
staff in the investment banking industry devoted exclusively to the analysis
of municipal bonds. Our award-winning team of more than 30 research
professionals provides invaluable support to our portfolio managers, assisting
them in careful analysis of bond issues considered for purchase--even those
rated AAA.
On a daily basis, our research analysts prepare credit reviews to assist in
the selection of bonds that offer the best combination of yield and security,
monitor the continued creditworthiness of portfolio holdings, and analyze
economic, political, and demographic trends affecting the markets.
The scope of this analysis is broad. We understand the beneficial insights
that can be obtained by assessing the impact of local elections in small towns
or gaining an understanding of the global wood pulp market to accurately
evaluate a municipal issue in Alaska. Recently a financial adviser noticed a
large number of clippings on salmon fishing on one Nuveen analyst's desk. The
analyst explained that the articles provided information on salmon spawning, a
conservation issue having a major impact on public hydroelectric projects in
the Pacific Northwest. With the largest research staff in the industry, we can
analyze subtle but essential details such as this--and apply our findings to
enhance the performance of your portfolio.
<PAGE>
BENEFITING OUR INVESTORS
The Nuveen Research Department supports the investment goals of fund investors
through three major activities:
Primary research and surveillance
Every year, our research staff reviews thousands of tax-exempt issues valued
at more than $100 billion to help our portfolio managers select the most
appropriate bonds based on current yield, price, credit quality, and future
prospects.
A recent example of the way Nuveen Research benefits our shareholders was
our successful investment in Philadelphia water and sewer bonds. When the city
decided to issue bonds to fund badly needed capital improvements, the city's
fiscal difficulties resulted in an issue that was priced below that of other
cities for similar bonds, generating higher income. However, Nuveen's own
research performed independently from the rating agencies indicated that the
city water and sewer system was economically sound and that adequate legal
safeguards would be in place to protect the investment. Following the
completion of the improvements, the prices of these bonds resulted in a
sizable portfolio gain to our shareholders.
Research reports
Just as you rely on your financial adviser for seasoned, prudent advice,
financial advisers depend on Nuveen's research reports to keep current on
market developments. Reports cover issues ranging from credit analysis of
specific states to comprehensive examinations of tax-free investment
strategies and the impact of national and state elections on municipal issues.
(For a list of research reports currently available to you and your adviser,
please refer to the attached reply card.)
Investor interests
We take our responsibility to our shareholders seriously by actively
representing their interests before the industry and government groups that
oversee and regulate the markets. We testified before a U.S. Senate
subcommittee to support better disclosure of financial information by bond
issuers. Our analysis of the effect of the Orange County bankruptcy on other
California issuers helped a California Senate subcommittee understand the
importance of fiscal conservatism and prudent policy decisions. By providing
informed opinions backed by years of experience, we help to define and set
policy that benefits you.
At Nuveen, quality research is one of the core elements of our disciplined
approach to providing you with dependable income, credit quality, and
diversification--key elements of a successful investment program.
Nuveen's research reports are often used by the press as background when
covering the municipal market in depth.
Photographic image of a grouping of research reports and newspapers.
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Photographic image of man seated at breakfast table with wife standing behind
him.
CONTENTS
6 Municipal market perspective
7 Dear shareholder
9 Answering your questions
14 Fund performance
16 Commonly used terms
18 Shareholder meeting report
19 Portfolio of investments
41 Statement of net assets
42 Statement of operations
43 Statement of changes in net assets
45 Notes to financial statements
54 Financial highlights
56 Report of independent auditors
57 Nuveen Exchange-Traded Funds dividend reinvestment program
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Municipal market perspective
The start of 1995 brought with it a turnaround in the bond market, concluding
one of the worst periods in recent bond market history. This rebound reflects
a general consensus that inflation is under control following an unprecedented
series of seven interest rate hikes by the Federal Reserve Board over a
twelve-month period.
In early July, the Federal Reserve reacted to the slowing economy by making a
much-anticipated move to ease short-term rates, the first such reduction in
nearly three years. Further rate cuts remain a possibility, as the Fed keeps a
close eye on the strength of the expanding economy and the outcome of
Congressional efforts to balance the federal budget.
In the municipal bond market, prospects of another Fed easing helped
municipals gain momentum toward year end, despite an exceptionally strong
stock market and continued debate about potential tax reform legislation.
Inflation for the year remained low, a benefit to bondholders.
<PAGE>
Dear shareholder
Photographic image of Richard Franke, Chairman of Nuveen.
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful investment programs."
Since the beginning of 1995, we have enjoyed a welcome rebound in the bond
markets, as we put behind us 1994--a very volatile period in bond market
history. This period serves as a reminder that weathering the ups and downs of
the markets is a normal part of the investment process. We can gain a better
perspective on this process if we remember one of the basic principles of
investing: A financial plan that focuses on your long-term goals can minimize
the impact of any short-term market volatility.
Municipal bond funds continue to be an attractive way to invest for the long
term, offering steady tax-free income and diversification across market
sectors. Throughout the past year, we have kept our sights focused on
successfully meeting these objectives, providing you with a solid source of
current income, credit quality, and enhanced share price relative to the
market as a whole.
As of October 31, 1995, current yields on share prices for the funds covered
in this report ranged from 7.08% to 7.20%. To match these yields, an investor
in the 36% federal income tax bracket would have had to earn at least 11.06%
on taxable alternatives of comparable quality. Without question, taxable
yields at these levels on investments of comparable quality are difficult to
achieve in today's markets.
Reflecting the rebound in the bond market, each of these funds reported
gains in net asset value over October 31, 1994, as well as substantial
increases in share price. The 12-month total returns on net asset value,
reflecting share price gains plus reinvested dividend income, ranged from
13.58% to 15.30%, which translates to 17.95% to 19.61% on a taxable-equivalent
basis. These performance results remind us of the important role that
municipal bonds--and the tax-free income they provide--can play as part of an
investment strategy focused on diversification and long-term performance.
The value and dependability of your municipal bond investments are enhanced
by the fact that you have chosen tax-free exchange-traded funds managed by
Nuveen. We offer a combination of professional management, award-winning
research, and shareholder service that distinguishes Nuveen as a fund manager.
<PAGE>
Our portfolio management strategy, which we call value investing, relies on
a disciplined approach to security selection and portfolio construction
designed to deliver above-market performance by emphasizing securities that
are underpriced or undervalued by the market. This approach is supported by
the strength of Nuveen Research, which provides the insights and experience to
assist portfolio managers in identifying and selecting bonds with strong
credit quality. Our research professionals continually monitor our holdings in
order to alert portfolio managers about changes that may affect quality.
Nuveen also prides itself on its exceptional service to shareholders.
Through annual and semiannual reports, regular statements, as well as our
toll-free information lines, our communication programs help us stay in touch
with your needs and concerns. We also provide support to financial advisers
across the nation by supplying them with the information they need to answer
your questions and ensure that products are selected to meet your needs. Our
educational reports--covering issues such as credit analyses, tax-free
investment strategies, and tax reform proposals--are available to both you and
your adviser to keep you current on market developments.
As you review the following pages detailing the solid performance of your
funds, we trust you will come away with the feeling that these results,
coupled with Nuveen's continued pledge of premium service, add up to a
rewarding investment experience. We look forward to serving your tax-free
investment needs in the future.
Sincerely,
Richard J. Franke
Chairman of the Board
December 15, 1995
<PAGE>
Answering your questions
Photographic image of montage of letters received by Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, offers insights into
value investing and the bond market recovery.
How has the recovery of the municipal bond market affected Nuveen funds?
In short, the market recovery has helped most Nuveen funds regain some of the
share price they lost during 1994's market. To put this in perspective, the
setback in the bond market last year--which goes on record as one of the most
volatile periods in decades--was the first downturn experienced by many Nuveen
exchange-traded fund investors, and they reacted by selling their shares.
This, in turn, drove share prices down even further. Since the beginning of
the recovery in early 1995, however, municipal bond prices have increased, and
most Nuveen funds have seen their prices rise 12% to 15%.
Because of their capital structure, leveraged funds such as the ones covered
in this report, experienced greater price declines in 1994 than unleveraged
funds, and they generally responded more quickly to the stabilizing interest
rate environment with recovering prices.
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
<PAGE>
Why do some of these funds continue to trade at a discount despite the
recovery?
To understand why this is happening, it may be helpful to remember that each
share has two prices: the net asset value (NAV), which represents the
underlying value--or the sum of assets and liabilities--of the fund, and the
share price, which reflects the market's assessment of the fund.
As the market turned around in 1995, net asset values appreciated more
quickly than share prices. This is typical of a market that sometimes takes a
while to recognize underlying value balanced against the various factors that
affect share price, such as interest rates, inflation forecasts, the relative
strength of the stock market, or the legislative and tax outlook. The fact
that gains in NAVs are currently outpacing the rate of change in share prices
means that the market is lagging in recognizing the value currently offered by
municipal bonds.
Investors in the Nuveen national funds should be aware that the net asset
values for these funds, as shown in the pages of this report, remain quite
strong. For long-term investors, in fact, the current period may present a
buying opportunity, as shares can be purchased at prices lower than their
underlying value--and at a time when the bond market is strong.
What does Nuveen mean by "value investing"? Where are Nuveen analysts finding
value today?
At Nuveen, we define value investing as a disciplined approach to security
selection and portfolio construction designed to deliver above-market
performance by emphasizing securities that offer good intrinsic value but that
are underpriced or undervalued by the market. Our value investing approach
concentrates on identifying individual bonds with current yields, prices,
credit quality, and future prospects that are exceptionally attractive in
relation to other bonds in the market.
As we search for value in the market today, our analysts continue to assess
investment potential across the entire spectrum of geographical and sector
opportunities. During 1995, we have seen many credit upgrades on portfolio
holdings, meaning that our judgments about credit quality have been rewarded.
We currently favor revenue bonds, which offer a dedicated revenue stream--such
as tollways or recycling plants, over general obligation bonds, which rely on
the taxing power of a state or municipality. One example of revenue bonds that
have performed exceptionally well for us recently are those issued for the
Denver International Airport.
<PAGE>
What does Nuveen see as the impact of the flat tax proposals?
We have been closely monitoring the various flat tax proposals currently being
debated in Congress and their implications for tax-free funds. Four major tax
reform proposals are currently under discussion, all with the common goal of
simplifying the federal tax code and increasing incentives for saving and
investment. It is important to note that none of the proposals has gained a
strong consensus and implementation of any measure that manages to pass both
houses is at least two years away. We believe that some action on the tax
reform front is likely, as our tax laws are constantly being reevaluated and
revised, although changes of the magnitude outlined in those proposals are
rare.
As we look at the bond market today, we can see some evidence that the
market is already compensating investors for the uncertainty of tax reform.
Yields on municipal bonds are currently at a level equal to 90% or more of
Treasury bond yields, an historically high level. These yields are comparable
to taxable yields in the 10% range, providing good value that is tough to
match.
Once this issue is resolved, we're confident that municipal bonds--because
of their high credit quality and attractive yields--will continue to hold a
strategic place in the prudent investor's portfolio. The importance of
municipal bonds is enhanced by the integral role they play in maintaining our
way of life in this country. Our cities, counties, and states will always have
a need for financing to build and upgrade projects such as roads, hospitals,
and water treatment systems, and municipal bonds will continue to be an
essential way to match America's long-term needs for capital improvements with
investors' long-term needs for secure income.
What is Nuveen's outlook as we head into 1996?
Inflation remains low and the economy seems to be expanding at a reasonable
pace, and while both of these factors can change and have an impact on the
bond market, the current environment is favorable for bonds. While municipal
supply is down from past years, demand from institutional investors such as
insurance companies has been strong in 1995, contributing to the rebound in
municipal prices. If we experience continued slow and steady economic growth,
combined with low inflation and stable interest rates, that would draw in
greater numbers of individual investors as well.
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NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC.
NPP
In keeping with the Fund's objective of providing attractive tax-free income,
shareholders enjoyed 12 months of stable dividends.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/94 $0.0900
12/94 $0.0900
1/95 $0.0900
2/95 $0.0900
3/95 $0.0900
4/95 $0.0900
5/95 $0.0900
6/95 $0.0900
7/95 $0.0900
8/95 $0.0900
9/95 $0.0900
10/95 $0.0900
<CAPTION>
FUND HIGHLIGHTS 10/31/95
<S> <C>
Yield 7.08%
Taxable-equivalent yield 11.06%
Annual total return on NAV 13.58%
Taxable-equivalent total return 17.95%
Federal tax rate 36.00%
Share price $15.25
NAV $15.21
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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<TABLE>
NUVEEN MUNICIPAL ADVANTAGE FUND, INC.
NMA
While the dividend income remained attractive compared with other funds, the
dividend was reduced during the 12 months as older, higher coupon bonds were
called and replaced with today's lower-yielding bonds.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/94 $0.0930
12/94 $0.0930
1/95 $0.0930
2/95 $0.0900
3/95 $0.0900
4/95 $0.0900
5/95 $0.0900
6/95 $0.0900
7/95 $0.0900
8/95 $0.0900
9/95 $0.0900
10/95 $0.0900
<CAPTION>
FUND HIGHLIGHTS 10/31/95
<S> <C>
Yield 7.14%
Taxable-equivalent yield 11.16%
Annual total return on NAV 14.62%
Taxable-equivalent total return 18.96%
Federal tax rate 36.00%
Share price $15.125
NAV $15.57
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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<TABLE>
NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NMO
While the dividend income remained attractive compared with other funds, the
dividend was reduced during the 12 months as older, higher coupon bonds were
called and replaced with today's lower-yielding bonds.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/94 $0.0930
12/94 $0.0930
1/95 $0.0930
2/95 $0.0900
3/95 $0.0900
4/95 $0.0900
5/95 $0.0900
6/95 $0.0900
7/95 $0.0900
8/95 $0.0900
9/95 $0.0900
10/95 $0.0900
<CAPTION>
FUND HIGHLIGHTS 10/31/95
<S> <C>
Yield 7.20%
Taxable-equivalent yield 11.25%
Annual total return on NAV 15.30%
Taxable-equivalent total return 19.61%
Federal tax rate 36.00%
Share price $15.00
NAV $15.77
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, October 31, 1995) divided by its closing price per share
on that date.
Taxable equivalent yield
The return an investor subject to a given federal income tax rate would need
to obtain from a fully taxable investment to equal the fund's stated
annualized yield on share price. In this report, the tax rate is assumed to be
36.0% for shareholders, based on incomes of $117,950-$256,500 for investors
filing singly, $143,600-$256,500 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by the total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Leverage
A technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term preferred
shares. The proceeds from the sale of the preferred shares can be used to
purchase additional long-term bonds, thus increasing the portfolio's income
stream. Changes in net asset value per share, both up and down, are also
magnified by leverage.
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 October 31, 1995. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
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<TABLE>
SHAREHOLDER MEETING REPORT
On July 26, 1995, Nuveen Exchange-Traded Funds held an Annual Meeting of
Shareholders. At the meeting, shareholders voted to elect directors of the
Funds and to ratify selection of the auditors for the Funds. The directors
elected at the meeting include: Lawrence H. Brown, Richard J. Franke, Anne E.
Impellizzeri, and Peter R. Sawers.
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Approval of the DIRECTORS
was reached as follows:
Lawrence H. Brown
For 51,381,584 37,234,369 39,675,331
Abstain 503,848 428,813 454,173
---------- ---------- ----------
Total 51,885,432 37,663,182 40,129,504
========== ========== ==========
Richard J. Franke
For 51,389,872 37,252,713 39,713,267
Abstain 495,560 410,469 416,237
---------- ---------- ----------
Total 51,885,432 37,663,182 40,129,504
========== ========== ==========
Anne E. Impellizzeri
For 51,349,010 37,197,405 39,659,833
Abstain 536,422 465,777 469,671
---------- ---------- ----------
Total 51,885,432 37,663,182 40,129,504
========== ========== ==========
Peter R. Sawers
For 51,381,372 37,251,314 39,706,477
Abstain 504,060 411,868 423,027
---------- ---------- ----------
Total 51,885,432 37,663,182 40,129,504
========== ========== ==========
Ratification of auditors
was reached as follows:
For 51,055,405 37,000,822 39,507,583
Against 233,915 136,295 156,419
Abstain 596,112 526,065 465,502
---------- ---------- ----------
Total 51,885,432 37,663,182 40,129,504
========== ========== ==========
</TABLE>
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<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC. (NPP)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 0.6%
$ 3,745,000 Alabama Housing Finance Authority, Single Family
Mortgage (GNMA), 8.000%, 10/01/20 10/98 at 102 AAA $ 4,013,142
3,700,000 Alabama Water Pollution Control Authority,
6.750%, 8/15/17 8/05 at 100 Aaa 4,065,190
ALASKA - 0.6%
1,415,000 Alaska Housing Finance Corporation, Collateralized
Home Mortgage, 8.375%, 12/01/16 12/96 at 103 Aaa 1,494,509
1,735,000 Alaska Housing Finance Corporation, Insured Mortgage
Program, 7.800%, 12/01/30 12/00 at 102 Aa 1,835,092
4,495,000 Alaska Housing Finance Corporation, Collateralized
Veterans Mortgage Program, 7.450%, 12/01/29 6/00 at 102 Aaa 4,749,417
ARIZONA - 0.5%
5,765,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 A- 6,504,131
ARKANSAS - 1.7%
21,010,000 Arkansas Development Finance Authority, Single Family
(GNMA), Alternative Minimum Tax, 8.400%, 8/01/20 8/98 at 102 AAA 22,530,704
CALIFORNIA - 9.0%
24,000,000 California Department of Veterans Affairs, Home
Purchase, Alternative Minimum Tax, 8.300%, 8/01/19 8/98 at 102 Aa 25,112,160
8,905,000 California Health Facilities Financing Authority
(Daughters of Charity-O'Connor Hospital),
9.125%, 3/01/06 3/96 at 102 Aa 9,235,999
10,000,000 California Health Facilities Financing Authority
(Catholic Healthcare West), 7.000%, 7/01/20
(Pre-refunded to 7/01/99) 7/99 at 102 Aaa 11,131,400
22,795,000 Los Angeles Department of Water and Power,
4.750%, 11/15/19 11/03 at 102 Aa 19,410,626
13,450,000 Ontario Redevelopment Authority, 7.200%, 8/01/17 No Opt. Call Aaa 15,992,454
Palmdale Community Redevelopment Agency:
20,420,000 7.150%, 2/01/10 No Opt. Call AAA 21,463,462
2,325,000 8.000%, 4/01/16 No Opt. Call Aaa 2,932,267
7,500,000 Sacramento Municipal Utility District, 4.750%, 9/01/21 9/03 at 100 Aaa 6,456,150
4,650,000 Southern California Public Power Authority (Palo Verde
Project), 5.000%, 7/01/15 7/03 at 102 Aa 4,208,994
COLORADO - 2.7%
City and County of Denver Airport System, Alternative
Minimum Tax:
6,470,000 8.750%, 11/15/23 11/01 at 102 Baa 7,585,493
5,000,000 7.250%, 11/15/23 11/02 at 102 Baa 5,314,550
11,870,000 8.000%, 11/15/25 11/00 at 102 Baa 13,237,899
3,595,000 8.000%, 11/15/25 11/01 at 100 Baa 4,013,314
4,720,000 7.000%, 11/15/25 11/01 at 100 Baa 4,799,721
FLORIDA - 3.3%
12,220,000 Florida Housing Finance Agency, Home Mortgage
(GNMA), Alternative Minimum Tax, 8.300%, 6/01/20 12/98 at 103 Aaa 13,097,152
25,935,000 St. Petersburg Health Facilities (Allegany Health System),
7.750%, 12/01/15 (Pre-refunded to 12/01/99) 12/99 at 102 Aaa 29,656,154
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
GEORGIA - 5.1%
Georgia Municipal Electric Authority:
$ 9,075,000 8.375%, 1/01/20 1/97 at 102 A+ $ 9,667,053
17,500,000 8.375%, 1/01/20 1/97 at 102 A 18,641,700
5,000,000 Burke County Development Authority, Pollution Control
(Georgia Power Company), 5.750%, 9/01/23 9/98 at 102 A1 4,811,800
12,225,000 Fulton-DeKalb Hospital Authority, (Grady Memorial),
5.500%, 1/01/20 7/03 at 102 Aaa 11,773,409
9,000,000 World Congress Center Authority (George L. Smith II
Domed Stadium Project), Alternative Minimum Tax,
7.875%, 7/01/20 7/00 at 102 Aa2 9,943,290
10,000,000 Monroe County Development Authority, Pollution
Control (Georgia Power Company), 6.750%, 10/01/24 10/99 at 102 A1 10,333,100
ILLINOIS - 5.6%
10,600,000 Illinois Development Finance Authority (Columbus-
Cuneo-Cabrini Medical Center), 8.500%, 2/01/15 2/00 at 102 BBB+ 11,482,662
6,850,000 Illinois Development Finance Authority, Multi-Family
Housing (Town and Garden Apartments Project),
Alternative Minimum Tax, 7.800%, 3/01/06 3/02 at 102 BBB+ 7,243,670
14,020,000 Illinois Health Facilities Authority (Rush-Presbyterian-
St. Luke's Hospital), 7.400%, 10/01/20 7/96 at 102 Aa 14,521,916
Illinois Health Facilities Authority (Northwestern
Memorial Hospital):
5,380,000 7.200%, 8/15/07 (Pre-refunded to 8/15/99) 8/99 at 102 Aaa 6,027,322
4,620,000 7.200%, 8/15/07 8/99 at 102 Aa 4,989,739
Chicago General Obligation:
2,000,000 9.250%, 1/01/13 (Pre-refunded to 7/01/97) 7/97 at 102 A 2,202,060
13,000,000 7.000%, 1/01/13 7/96 at 101 Aaa 13,374,010
5,800,000 Chicago Gas Supply (People's Gas Light and Coke
Company), Alternative Minimum Tax, 8.100%, 5/01/20 5/00 at 102 Aa3 6,596,862
5,105,000 Chicago School Finance Authority, 7.750%, 6/01/09
(Pre-refunded to 6/01/96) 6/96 at 102 Aaa 5,322,320
INDIANA - 2.2%
5,250,000 Indiana Bond Bank, 6.000%, 2/01/16 2/04 at 102 A 5,182,853
5,805,000 Indiana Office Building Commission, 8.500%, 7/01/04
(Pre-refunded to 7/01/97) 7/97 at 102 Aaa 6,334,764
5,000,000 Indianapolis Local Bond Bank, 8.500%, 2/01/18
(Pre-refunded to 2/01/98) 2/98 at 102 A+ 5,559,600
5,000,000 Fort Wayne South Side School Building Corporation,
6.125%, 1/15/12 1/04 at 102 Aaa 5,187,700
5,730,000 Michigan City School Building Corporation,
6.125%, 12/15/09 12/04 at 102 Aaa 6,022,173
IOWA - 1.6%
19,480,000 Iowa Finance Authority, Single Family Mortgage
(GNMA), Alternative Minimum Tax, 8.250%, 5/01/20 11/98 at 102 Aaa 20,843,795
KANSAS - 0.2%
2,175,000 Sedgwick and Shawnee Counties, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
7.875%, 12/01/21 6/99 at 103 Aaa 2,338,343
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
KENTUCKY - 0.9%
$ 10,000,000 Carroll County Pollution Control (Kentucky Utilities
Company), 7.450%, 9/15/16 9/02 at 102 Aa2 $ 11,314,100
LOUISIANA - 2.2%
6,075,000 East Baton Rouge Mortgage Finance Authority, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 7.875%, 12/01/21 12/00 at 103 Aaa 6,538,158
7,975,000 Jefferson Parish Home Mortgage Authority, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
7.875%, 12/01/21 12/00 at 103 Aaa 8,583,014
5,630,000 New Orleans Housing Development Corporation (Curran
Place Apartments), 7.700%, 8/01/23 6/03 at 100 AAA 6,084,904
6,500,000 Shreveport Water and Sewer, 5.950%, 12/01/14 12/03 at 103 Aaa 6,604,195
MAINE - 0.8%
11,000,000 Maine State Housing Authority, 5.700%, 11/15/26 2/04 at 102 AA- 10,303,150
MARYLAND - 1.2%
7,475,000 Montgomery County Housing Opportunities Commission,
6.250%, 7/01/28 7/04 at 102 Aa 7,567,017
7,090,000 Takoma Park (Washington Adventist Hospital),
6.500%, 9/01/12 No Opt. Call Aaa 7,832,323
MASSACHUSETTS - 6.4%
Massachusetts Bay Transportation Authority:
7,375,000 7.750%, 3/01/12 (Pre-refunded to 3/01/98) 3/98 at 102 Aaa 8,113,901
14,375,000 7.875%, 3/01/21 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 16,930,731
4,000,000 Massachusetts Health and Educational Facilities
Authority (Baystate Medical Center), 7.500%, 7/01/20
(Pre-refunded to 7/01/99) 7/99 at 102 A+ 4,477,720
4,475,000 Massachusetts Housing Finance Agency, Multi-Family
Residential Development, Alternative Minimum Tax,
7.650%, 2/01/28 8/99 at 102 Aaa 4,756,612
12,940,000 Massachusetts Housing Finance Authority, Single Family
Housing, Alternative Minimum Tax, 8.400%, 12/01/16 6/98 at 102 Aa 13,797,922
Massachusetts Municipal Wholesale Electric Company:
12,210,000 8.750%, 7/01/18 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 13,370,316
555,000 8.750%, 7/01/18 7/97 at 102 A 655,695
8,000,000 Massachusetts Water Resources Authority,
7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 9,131,120
10,065,000 Boston City Hospital (FHA-Insured Mortgage),
7.625%, 2/15/21 (Pre-refunded to 8/15/00) 8/00 at 102 Aaa 11,530,565
MICHIGAN - 0.4%
4,480,000 Grand Rapids Housing Corporation, Multi-Family
Housing, 7.375%, 7/15/41 1/04 at 104 AAA 4,814,029
MINNESOTA - 2.3%
15,340,000 Dakota County Housing and Redevelopment Authority,
Single Family Mortgage (FNMA), Alternative Minimum
Tax, 6.900%, 10/01/27 4/04 at 102 AAA 16,166,059
St. Paul Housing and Redevelopment Authority, Single
Family Mortgage:
2,685,000 6.400%, 3/01/21 3/05 at 102 Aaa 2,758,784
10,000,000 6.800%, 3/01/28 3/05 at 102 19/32 Aaa 10,743,900
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MISSOURI - 0.9%
$ 10,975,000 Missouri Housing Development Commission, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.300%, 5/01/19 5/98 at 102 AAA $ 11,655,560
NEBRASKA - 1.4%
16,595,000 Nebraska Investment Finance Authority, Single Family
Mortgage, Alternative Minimum Tax, 8.125%, 8/15/38 8/98 at 102 Aaa 17,613,435
NEVADA - 1.5%
Las Vegas Downtown Redevelopment Agency:
1,440,000 7.900%, 6/01/06 (Pre-refunded to 6/01/98) 6/98 at 102 A- 1,594,944
2,440,000 7.900%, 6/01/06 6/98 at 102 A- 2,666,944
8,285,000 7.900%, 6/01/09 6/98 at 102 A- 9,176,466
5,100,000 Washoe County (Washoe Medical Center), 7.600%, 6/01/19
(Pre-refunded to 6/01/99) 6/99 at 102 A 5,715,366
NEW HAMPSHIRE - 0.3%
3,070,000 New Hampshire Industrial Development Authority
(United Illuminating Company), Alternative Minimum
Tax, 8.000%, 12/01/14 12/99 at 103 Baa3 3,258,191
NEW YORK - 9.7%
25,205,000 New York State Medical Care Facilities Finance Agency
(Columbia-Presbyterian), 8.000%, 2/15/25
(Pre-refunded to 8/15/97) 8/97 at 102 Aaa 27,409,933
4,000,000 New York State Medical Care Facilities Finance Agency
(St. Luke's-Roosevelt Hospital Center), 7.375%, 2/15/19 2/00 at 102 AA 4,255,920
14,750,000 New York State Medical Care Facilities Finance Agency
(Mental Health Services), 5.375%, 2/15/14 2/04 at 102 Aaa 14,151,888
15,000,000 New York State Urban Development Corporation,
Correctional Facilities, 7.250%, 1/01/14 (Pre-refunded
to 1/01/00) 1/00 at 102 Aaa 17,014,050
Dormitory Authority of the State of New York
(State University):
4,350,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 5,027,556
4,000,000 6.000%, 5/15/17 5/00 at 100 Baa1 3,940,480
New York City General Obligation:
4,150,000 8.500%, 8/01/08 (Pre-refunded to 8/01/97) 8/97 at 102 AAA 4,537,029
850,000 8.500%, 8/01/08 8/97 at 102 Baa1 926,084
7,560,000 6.625%, 8/01/14 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 8,588,538
440,000 6.625%, 8/01/14 8/02 at 101 1/2 Aaa 470,712
9,295,000 New York City Municipal Assistance Corporation,
7.625%, 7/01/08 7/99 at 102 Aa 10,469,330
New York City Municipal Water Finance Authority:
6,500,000 7.250%, 6/15/11 (Pre-refunded to 6/15/99) 6/99 at 101 1/2 A 7,254,780
8,350,000 8.250%, 6/15/16 (Pre-refunded to 6/15/97) 6/97 at 102 Aaa 9,075,615
11,530,000 7.625%, 6/15/16 (Pre-refunded to 6/15/97) 6/97 at 101 1/2 Aaa 12,368,116
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NORTH CAROLINA - 3.3%
North Carolina Eastern Municipal Power Agency:
$ 17,960,000 8.000%, 1/01/21 (Pre-refunded to 1/01/98) 1/98 at 102 Aaa $ 19,804,672
1,225,000 7.250%, 1/01/21 1/97 at 102 Aaa 1,297,630
8,125,000 7.250%, 1/01/21 1/97 at 102 A 8,389,875
North Carolina Municipal Power Agency No. 1 (Catawba):
8,250,000 7.000%, 1/01/16 1/98 at 102 A 8,575,710
5,000,000 8.500%, 1/01/17 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 5,138,750
OHIO - 1.1%
8,885,000 Ohio Housing Finance Agency, Single Family Mortgage
(GNMA), Alternative Minimum Tax, 7.650%, 3/01/29 9/99 at 102 AAA 9,298,863
Toledo-Lucas County Port Authority, Alternative
Minimum Tax:
855,000 8.250%, 11/15/99 No Opt. Call N/R 905,197
1,830,000 8.375%, 11/15/04 11/99 at 102 N/R 1,907,427
1,260,000 8.250%, 11/15/04 11/99 at 102 N/R 1,309,480
1,115,000 8.375%, 5/15/05 5/00 at 102 N/R 1,163,480
OKLAHOMA - 1.3%
9,850,000 Oklahoma Industrial Authority, Health Facilities (Sisters
of Mercy), 7.500%, 6/01/18 (Pre-refunded to 6/01/99) 6/99 at 102 Aaa 11,083,122
4,475,000 Comanche County Hospital Authority, 8.050%, 7/01/16
(Pre-refunded to 7/01/99) 7/99 at 102 AAA 5,127,500
OREGON - 0.2%
3,000,000 Springfield Hospital Facility Authority (McKenzie-
Willamette Hospital), 6.375%, 8/01/08 8/04 at 100 Ba1 2,892,030
PENNSYLVANIA - 0.6%
5,390,000 Pennsylvania Higher Educational Facilities Authority
(Thomas Jefferson University), 7.750%, 11/01/15 11/00 at 102 Aa 6,279,242
860,000 Pennsylvania Housing Finance Agency, Alternative
Minimum Tax, 8.150%, 4/01/24 4/00 at 102 Aa 874,362
RHODE ISLAND - 0.8%
10,000,000 Rhode Island Housing and Mortgage Finance
Corporation, Alternative Minimum Tax,
8.050%, 4/01/22 10/00 at 102 AA+ 10,749,300
SOUTH CAROLINA - 5.7%
25,365,000 South Carolina Housing Authority, Homeownership
Mortgage Purchase, Alternative Minimum Tax,
8.600%, 7/01/19 7/98 at 102 Aa 27,248,351
South Carolina Public Service Authority:
8,370,000 7.875%, 7/01/21 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 8,593,311
15,765,000 7.875%, 7/01/21 1/96 at 102 AA- 16,153,923
Piedmont Municipal Power Agency:
8,000,000 7.250%, 1/01/22 1/96 at 102 A 8,186,640
12,935,000 8.000%, 1/01/23 (Pre-refunded to 1/01/96) 1/96 at 101 1/2 Aaa 13,218,535
SOUTH DAKOTA - 0.4%
South Dakota Health and Educational Facilities
Authority (Sioux Valley Hospital):
4,630,000 7.625%, 11/01/13 (Pre-refunded to 11/01/98) 11/98 at 102 Aa 5,159,950
370,000 7.625%, 11/01/13 11/98 at 102 Aa 389,954
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TENNESSEE - 0.8%
$ 3,210,000 Tennessee Housing Development Agency, 7.650%, 7/01/06 7/03 at 100 A1 $ 3,451,745
7,365,000 Memphis Health Educational and Housing Facilities
Board (Riverdale Plaza Apartments), 6.350%, 7/20/28 1/03 at 103 AAA 7,457,946
TEXAS - 13.0%
7,500,000 Texas A & M University Board of Regents,
8.375%, 7/01/09 (Pre-refunded to 7/01/96) 7/96 at 100 AAA 7,726,200
Texas Veterans' General Obligation:
9,570,000 8.300%, 12/01/16 (Pre-refunded to 12/01/99) 12/99 at 100 AAA 11,014,209
6,915,000 8.300%, 12/01/16 12/95 at 102 Aa 7,091,194
11,800,000 Austin Combined Utility System, 5.750%, 11/15/16 11/02 at 100 Aaa 11,664,890
2,815,000 Bexar County Housing Finance Corporation,
10.875%, 3/01/10 3/96 at 102 A 2,899,478
25,000,000 Brazos River Authority, Pollution Control (Houston
Lighting and Power Company Project),
7.625%, 5/01/19 7/99 at 102 A3 27,535,250
20,000,000 Dallas-Fort Worth International Airport (American
Airlines, Inc.), Alternative Minimum Tax,
7.500%, 11/01/25 11/00 at 102 Baa2 21,145,000
6,855,000 Fort Worth Housing Finance Corporation,
8.500%, 10/01/11 10/01 at 103 Aa 7,534,056
12,650,000 Grapevine Industrial Development Corporation
(American Airlines, Inc.), 9.250%, 12/01/12 12/95 at 102 Baa3 12,965,871
4,250,000 Harris County Health Facilities (Texas Children's
Hospital), 7.000%, 10/01/19 (Pre-refunded
to 10/01/99) 10/99 at 102 Aaa 4,744,403
720,000 Hidalgo County Housing Finance Corporation, Single
Family Mortgage (GNMA and FNMA), Alternative
Minimum Tax, 6.750%, 10/01/15 4/04 at 102 Aaa 733,795
25,200,000 Matagorda County Navigation District No. 1, Pollution
Control (Houston Lighting and Power Company),
7.125%, 7/01/19 7/99 at 102 Aaa 27,870,696
13,740,000 McAllen Health Facilities Development Corporation
(Sisters of Mercy Health System), 7.250%, 6/01/15
(Pre-refunded to 6/01/99) 6/99 at 102 Aaa 15,347,030
9,000,000 San Antonio, Electric and Gas Systems, 8.000%, 2/01/16
(Pre-refunded to 2/01/98) 2/98 at 102 Aaa 9,924,930
UTAH - 2.0%
Intermountain Power Agency:
11,660,000 7.875%, 7/01/14 7/96 at 102 Aa 12,179,220
13,500,000 7.200%, 7/01/19 7/97 at 102 Aa 14,253,435
VERMONT - 0.9%
11,000,000 Vermont Housing Finance Agency, Alternative Minimum
Tax, 7.000%, 11/01/27 11/04 at 102 A1 11,559,900
VIRGINIA - 1.0%
10,865,000 Fairfax County Water Authority, 7.250%, 1/01/27
(Pre-refunded to 1/01/00) 1/00 at 102 Aaa 12,292,552
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON - 5.1%
Washington Public Power Supply System, Nuclear
Project No. 1:
$ 22,305,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa $ 25,147,102
17,985,000 7.500%, 7/01/15 7/99 at 102 Aa 19,642,856
7,500,000 6.000%, 7/01/17 7/99 at 100 Aa 7,369,949
10,000,000 5.700%, 7/01/17 7/03 at 102 Aaa 9,786,199
4,000,000 Washington Public Power Supply System, Nuclear
Project No. 3, 5.700%, 7/01/18 7/03 at 102 Aa 3,802,159
$1,175,385,000 Total Investments - (cost $1,175,456,640) - 97.3% 1,255,372,642
==============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.7%
$ 1,000,000 District of Columbia (American Association for
Advancement of Science), Series 1995, Variable
Rate Demand Bonds, 3.950%, 10/01/22t A-1 1,000,000
1,700,000 Jackson County Pollution Control Revenue (Chevron
USA Project), 1992, Variable Rate Demand Bonds,
3.900%, 12/01/16t P-1 1,700,000
1,800,000 Maricopa County Pollution Control Corporation,
Pollution Control (Arizona Public Service Company
Palo Verde Project), Series F, Variable Rate Demand
Bonds, 4.000%, 5/01/29t A-1 1,800,000
600,000 Maricopa County Pollution Control Corporation
(Arizona Public Service Company Palo Verde Project),
Variable Rate Demand Bonds, 3.900%, 5/01/29t A-1+ 600,000
1,500,000 New York State Energy Research and Development
Authority, Pollution Control, Variable Rate Demand
Bonds, 4.000%, 10/01/29t VMIG-1 1,500,000
1,500,000 North Central Texas Health Facilities Development
Corporation (Presbyterian Medical Center), Variable
Rate Demand Bonds, 3.900%, 12/01/15t VMIG-1 1,500,000
500,000 University of Florida Stadium Capital Improvement,
Variable Rate Demand Bonds, 4.000%, 2/01/20t VMIG-1 500,000
$ 8,600,000 Total Temporary Investments - 0.7% 8,600,000
==============
Other Assets Less Liabilities - 2.0% 25,831,197
Net Assets - 100% $1,289,803,839
==============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 67 $ 693,949,215 54%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 29 292,290,068 23
PORTFOLIO OF A+ A1 7 49,860,918 4
INVESTMENTS A, A- A, A2, A3 15 115,181,892 9
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 12 95,912,935 8
TEMPORARY BB+, BB, BB- Ba1, Ba, Ba2, Ba3 1 2,892,030 1
INVESTMENTS): Non-rated Non-rated 4 5,285,584 1
TOTAL 135 $1,255,372,642 100%
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL ADVANTAGE FUND, INC. (NMA)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 0.4%
$ 3,700,000 Alaska State Housing Finance Corporation,
6.600%, 12/01/23 12/02 at 102 Aa $ 3,961,479
CALIFORNIA - 13.7%
10,000,000 California Health Facilities Financing Authority
(Catholic Healthcare West), 7.000%, 7/01/20
(Pre-refunded to 7/01/99) 7/99 at 102 Aaa 11,131,400
4,500,000 California Health Facilities Financing Authority (Valley
Care Hospital), 7.000%, 5/01/20 5/00 at 102 A 4,735,575
23,010,000 California Public Works Board (Regents of the
University of California), 5.500%, 6/01/21 6/03 at 102 Con(A1) 21,358,112
7,535,000 Contra Costa County Home Mortgage (GNMA),
Alternative Minimum Tax, 7.750%, 5/01/22 No Opt. Call Aaa 9,427,340
Los Angeles Department of Water and Power:
11,455,000 4.750%, 11/15/19 11/03 at 102 Aa 9,754,276
10,000,000 6.400%, 5/15/28 5/01 at 102 Aa 10,351,500
3,950,000 Northern California Power Agency, 7.150%, 7/01/24 7/98 at 102 A 4,268,963
14,490,000 Palm Desert Financing Authority, Tax Allocation,
6.125%, 8/01/22 8/02 at 102 Aaa 14,783,133
Palmdale Community Redevelopment Agency:
9,260,000 7.375%, 2/01/12 No Opt. Call AAA 9,977,094
10,000,000 8.000%, 3/01/16 No Opt. Call Aaa 12,605,800
9,315,000 Perris Single Family Mortgage, Alternative Minimum
Tax, 7.600%, 1/01/23 No Opt. Call Aaa 11,357,221
10,585,000 Southern California Public Power Authority,
7.375%, 7/01/21 7/96 at 102 1/2 Aa 11,095,515
COLORADO - 1.1%
9,380,000 City and County of Denver Airport System, Alternative
Minimum Tax, 8.500%, 11/15/23 11/00 at 102 Baa 10,690,574
DISTRICT OF COLUMBIA - 0.7%
6,765,000 District of Columbia Housing Finance Agency (GNMA),
Single Family Mortgage, Alternative Minimum Tax,
6.375%, 6/01/26 6/04 at 103 AAA 6,852,674
FLORIDA - 1.3%
5,000,000 Dade County Educational Facilities Authority (St.
Thomas University), 7.650%, 1/01/14 (Pre-refunded
to 1/01/00) 1/00 at 102 AA- 5,732,650
5,720,000 Dade County Health Facilities Authority (South Shore
Hospital), 7.600%, 8/01/24 8/00 at 102 AA 6,223,532
GEORGIA - 2.4%
Municipal Electric Authority of Georgia:
11,310,000 8.125%, 1/01/17 1/98 at 102 A 12,362,848
6,250,000 7.875%, 1/01/18 (Pre-refunded to 1/01/96) 1/96 at 102 A 6,416,438
4,000,000 Douglasville-Douglas County Water and Sewer Authority,
9.000%, 6/01/05 (Pre-refunded to 6/01/96) 6/96 at 102 Aaa 4,197,640
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS - 8.5%
$ 10,750,000 Illinois Development Finance Authority (Columbus-
Cuneo-Cabrini Medical Center), 8.500%, 2/01/15 2/00 at 102 BBB+ $ 11,645,153
11,625,000 Illinois Educational Facilities Authority (The University
of Chicago), 5.700%, 12/01/25 12/03 at 102 Aaa 11,306,708
4,210,000 Illinois Health Facilities Authority (West Suburban
Hospital), 8.000%, 8/01/02 8/97 at 102 A 4,511,310
16,000,000 Illinois Health Facilities Authority (ServantCor),
7.875%, 8/15/19 (Pre-refunded to 8/15/99) 8/99 at 102 BBB+ 18,166,560
7,905,000 Illinois Health Facilities Authority (Riverside Medical
Center), 6.750%, 11/01/15 11/99 at 100 Baa1 8,017,962
8,545,000 Illinois Housing Development Authority, Alternative
Minimum Tax, 8.100%, 2/01/22 8/98 at 102 Aa 9,059,494
3,000,000 Chicago General Obligation, 9.200%, 1/01/05
(Pre-refunded to 7/01/97) 7/97 at 102 A 3,300,870
11,700,000 Metropolitan Pier & Exposition Authority (McCormick
Place Expansion Project), 6.500%, 6/15/27 6/03 at 102 A+ 12,031,578
2,500,000 Regional Transportation Authority, General Obligation,
7.200%, 11/01/20 No Opt. Call Aaa 3,002,175
INDIANA - 1.1%
7,425,000 Fort Wayne International Airport Building Corporation,
5.900%, 1/01/14 1/04 at 101 Aa 7,354,166
3,215,000 Mooresville Consolidated School Building Corporation,
6.400%, 7/15/15 1/04 at 102 A 3,335,337
IOWA - 0.9%
5,000,000 Iowa Finance Authority, Single Family Mortgage,
6.450%, 1/01/24 1/05 at 102 Aaa 5,156,050
3,500,000 Marshalltown Pollution Control (Iowa Electric Light
and Power Company), 5.500%, 11/01/23 11/03 at 102 Aaa 3,367,175
LOUISIANA - 1.4%
10,000,000 Louisiana Public Facilities Authority, Extended Care
(Comm-Care Corporation), 11.000%, 2/01/14 No Opt. Call BBB 13,324,400
MARYLAND - 1.1%
10,000,000 Gaithersburg (Shady Grove Adventist Hospital),
6.000%, 9/01/21 9/05 at 102 Aaa 10,045,300
MASSACHUSETTS - 7.6%
Massachusetts Bay Transportation Authority:
5,000,000 7.000%, 3/01/10 (Pre-refunded to 3/01/00) 3/00 at 100 Aaa 5,515,700
3,500,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 4,004,560
7,845,000 Massachusetts Health and Educational Facilities
Authority (Emerson Hospital), 8.000%, 7/01/18
(Pre-refunded to 7/01/00) 7/00 at 102 Baa1 9,119,499
13,915,000 Massachusetts Health and Educational Facilities
Authority (Capital Asset Program), 7.300%, 10/01/18 4/00 at 102 Aaa 15,465,548
2,480,000 Massachusetts Housing Finance Agency, Alternative
Minimum Tax, 8.100%, 8/01/23 8/99 at 102 BBB+ 2,606,505
10,300,000 Massachusetts Industrial Finance Agency, Resource
Recovery (Semass Project), 9.000%, 7/01/15 7/01 at 103 N/R 11,294,774
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
Massachusetts Water Resources Authority:
$ 8,770,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa $ 10,053,577
11,535,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 13,165,934
1,000,000 Boston General Obligation, 7.375%, 2/01/10
(Pre-refunded to 2/01/00) 2/00 at 102 A 1,133,210
MICHIGAN - 1.0%
100,000 Michigan State Hospital Finance Authority (Sisters of
Mercy Health Corporation), 10.500%, 7/01/14 1/96 at 101 A 101,875
Lapeer Economic Development Corporation (Lapeer
Health Services):
2,915,000 8.250%, 2/01/04 (Pre-refunded to 2/01/00) 2/00 at 102 BBB 3,377,581
3,000,000 8.500%, 2/01/12 (Pre-refunded to 2/01/00) 2/00 at 102 BBB 3,503,100
2,000,000 8.625%, 2/01/20 (Pre-refunded to 2/01/00) 2/00 at 102 BBB 2,344,460
MINNESOTA - 2.6%
8,815,000 Minnesota Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax, 7.950%, 7/01/22 7/00 at 102 Aa 9,393,352
Minneapolis/St. Paul Housing Finance Board, Single
Family Mortgage, Alternative Minimum Tax:
840,000 7.750%, 8/01/10 2/00 at 102 AAA 900,186
600,000 7.500%, 8/01/17 2/00 at 102 AAA 646,560
4,910,000 8.000%, 2/01/23 2/00 at 102 AAA 5,244,322
Minneapolis Community Development Agency, Limited
Tax Supported Development, Alternative Minimum Tax:
2,130,000 8.500%, 12/01/08 12/98 at 102 BBB+ 2,383,853
3,510,000 8.750%, 12/01/17 12/98 at 102 BBB+ 3,955,840
2,555,000 8.250%, 6/01/19 12/99 at 102 BBB+ 2,750,330
MISSISSIPPI - 1.6%
5,490,000 Coahoma-Clarksdale Housing Development Corporation,
8.000%, 8/01/24 8/03 at 100 AAA 6,026,318
2,735,000 Greenwood-Leflore Housing Development Corporation
(Jones Apartments), 7.950%, 8/01/22 6/02 at 100 A 2,878,752
1,645,000 Greenwood-Leflore Housing Development Corporation
(Ivory Apartments), 7.950%, 2/01/22 2/01 at 100 A 1,738,946
1,730,000 Greenwood-Leflore Housing Development Corporation
(McNeace Apartments), 7.950%, 8/01/22 3/02 at 100 A 1,819,874
2,690,000 Greenwood-Leflore Housing Development Corporation
(Bishop Apartment), 7.950%, 8/01/22 8/01 at 100 A 2,826,948
MISSOURI - 0.3%
2,500,000 Missouri Health and Educational Facilities Authority
(SSM Health Care), 7.750%, 6/01/16 (Pre-refunded
to 6/01/98) 6/98 at 102 Aaa 2,768,375
NEW HAMPSHIRE - 1.9%
3,240,000 New Hampshire Business Finance Authority (Pennichuck
Water Works, Inc.), 6.350%, 12/01/19 12/04 at 102 Aaa 3,413,405
2,060,000 New Hampshire Business Finance Authority (Pennichuck
Water Works, Inc.), Alternative Minimum Tax,
6.450%, 12/01/16 12/04 at 102 Aaa 2,171,158
4,940,000 New Hampshire Housing Finance Authority, Alternative
Minimum Tax, 7.950%, 7/01/22 7/00 at 102 Aa 5,294,939
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW HAMPSHIRE (CONTINUED)
$ 7,065,000 New Hampshire Housing Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
7.900%, 7/01/22 7/99 at 102 Aa $ 7,512,921
NEW JERSEY - 1.0%
10,365,000 New Jersey Housing and Mortgage Finance Agency,
5.350%, 10/01/15 10/03 at 102 Aaa 9,841,257
NEW YORK - 14.2%
20,200,000 New York State Housing Finance Agency, Health
Facilities Revenue (New York City), 8.000%, 11/01/08 11/00 at 102 BBB+ 22,951,038
8,500,000 New York State Medical Care Facilities Finance Agency
(Buffalo General Hospital), 7.600%, 2/15/08
(Pre-refunded to 8/15/98) 8/98 at 102 AAA 9,439,505
20,000,000 New York State Medical Care Facilities Finance Agency
(Columbia-Presbyterian), 8.000%, 2/15/25
(Pre-refunded to 8/15/97) 8/97 at 102 Aaa 21,749,600
5,000,000 New York State Medical Care Facilities Finance Agency
(St. Luke's-Roosevelt Hospital Center), 7.450%, 2/15/29
(Pre-refunded to 2/15/00) 2/00 at 102 Aaa 5,695,850
8,000,000 New York City General Obligation, 9.500%, 6/01/03 No Opt. Call Baa1 9,841,680
4,605,000 Dormitory Authority of the State of New York (United
Health Services), 7.350%, 8/01/29 2/00 at 102 AAA 5,003,839
26,000,000 Dormitory Authority of the State of New York (City
University), 7.625%, 7/01/20 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 30,056,260
Dormitory Authority of the State of New York
(State University):
19,965,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 23,074,748
7,250,000 6.500%, 5/15/19 (Pre-refunded to 5/15/00) 5/00 at 100 AAA 7,904,313
NORTH DAKOTA - 0.3%
2,235,000 North Dakota Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax, 8.375%, 7/01/19 7/98 at 103 Aa 2,389,461
OHIO - 1.9%
15,080,000 Ohio Air Quality Development Authority, Pollution
Control (Cleveland Electric Illuminating Company),
8.000%, 12/01/13 6/02 at 103 Aaa 17,865,427
OKLAHOMA - 1.7%
1,740,000 Cleveland County Home Loan Authority, Single Family
Mortgage 8.375%, 2/01/12 8/01 at 102 A1 1,910,346
13,570,000 Tulsa Municipal Airport (AMR Corporation), Alternative
Minimum Tax, 7.600%, 12/01/30 6/01 at 102 Baa2 14,468,198
PENNSYLVANIA - 2.0%
2,140,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax,
8.150%, 10/01/21 10/00 at 102 Aa 2,228,981
3,500,000 Pennsylvania Housing Finance Agency, Rental Housing
(FNMA), 5.800%, 7/01/18 7/03 at 102 Aaa 3,469,165
8,500,000 Philadelphia Water and Wastewater System,
5.000%, 6/15/16 6/03 at 100 Aaa 7,778,350
4,795,000 Venango Housing Corporation, Multi-Family Mortgage
8.000%, 2/01/24 12/03 at 100 AAA 5,193,321
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
RHODE ISLAND - 2.3%
$ 6,875,000 Rhode Island Housing and Mortgage Finance
Corporation, 7.750%, 4/01/22 4/00 at 102 AA+ $ 7,371,925
4,140,000 Rhode Island Housing and Mortgage Finance
Corporation, Alternative Minimum Tax,
8.050%, 4/01/22 10/00 at 102 AA+ 4,450,210
6,000,000 Rhode Island Convention Center Authority,
5.000%, 5/15/23 5/04 at 102 Aaa 5,415,900
Providence Housing Authority, Multi-Family Mortgage
(FHA-Insured), Alternative Minimum Tax:
435,000 7.375%, 4/01/10 4/02 at 105 AAA 475,229
1,060,000 7.400%, 4/01/20 4/02 at 105 AAA 1,151,128
3,050,000 7.500%, 10/01/32 4/02 at 105 AAA 3,310,867
SOUTH CAROLINA - 5.6%
5,000,000 South Carolina Public Service Authority,
5.000%, 1/01/25 1/03 at 102 Aaa 4,481,950
3,500,000 Charleston County Resource Recovery (Foster Wheeler),
Alternative Minimum Tax, 9.000%, 1/01/05 1/98 at 103 A 3,896,515
Piedmont Municipal Power Agency:
6,250,000 7.000%, 1/01/19 1/98 at 102 Aaa 6,586,438
17,890,000 7.250%, 1/01/22 1/96 at 102 A 18,307,374
19,675,000 8.000%, 1/01/23 (Pre-refunded to 1/01/96) 1/96 at 101 1/2 Aaa 20,106,276
TEXAS - 7.4%
Brazos River Authority, Pollution Control (Texas Utilities
Electric Company), Alternative Minimum Tax:
5,450,000 9.875%, 10/01/17 10/97 at 102 Baa2 6,058,384
5,840,000 8.250%, 1/01/19 1/99 at 102 Baa2 6,514,286
8,000,000 8.125%, 2/01/20 2/00 at 102 Baa2 8,883,280
4,925,000 Cameron County Housing Finance Corporation, Single
Family Mortgage, 6.750%, 3/01/26 9/02 at 103 AAA 5,136,381
3,000,000 El Paso Housing Finance Corporation, Multi-Family
Housing (GNMA), 7.500%, 3/20/25 1/00 at 103 AAA 3,188,700
7,980,000 Grapevine Industrial Development Corporation (AMR
Corporation), 9.250%, 12/01/12 12/95 at 102 Baa3 8,179,261
6,000,000 Harris County Health Facilities Development
Corporation (Texas Medical Center), 7.375%, 5/15/20 5/00 at 102 Aaa 6,716,100
6,000,000 Harris County Hospital District, 8.500%, 4/01/15
(Pre-refunded to 4/01/96) 4/96 at 102 Aaa 6,234,540
Houston Water Conveyance System Contract, Certificates
of Participation:
5,490,000 6.800%, 12/15/10 No Opt. Call Aaa 6,243,338
2,000,000 6.800%, 12/15/11 No Opt. Call Aaa 2,274,280
7,500,000 Sabine River Authority, Pollution Control (Texas Utilities
Electric Company), Alternative Minimum Tax,
8.125%, 2/01/20 2/00 at 102 Baa2 8,132,175
Wood Glen Housing Finance Corporation:
1,775,000 7.625%, 1/01/10 1/00 at 103 Aaa 1,913,148
1,250,000 7.650%, 7/01/23 1/00 at 103 Aaa 1,340,275
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
UTAH - 2.1%
$ 1,280,000 Utah Housing Finance Agency, Alternative Minimum
Tax, 8.250%, 7/01/21 7/99 at 102 AA $ 1,352,358
Intermountain Power Agency:
11,020,000 7.500%, 7/01/16 7/96 at 102 Aa 11,480,195
6,465,000 7.200%, 7/01/19 7/97 at 102 Aa 6,825,812
WASHINGTON - 7.3%
7,195,000 Washington General Obligation, 6.000%, 3/01/16 3/01 at 100 Aa 7,280,908
Washington Public Power Supply System, Nuclear
Project No. 1:
3,000,000 5.750%, 7/01/13 7/03 at 102 Aa 2,929,860
5,520,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 6,223,358
3,595,000 7.500%, 7/01/15 7/99 at 102 Aa 3,926,387
11,135,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 12,579,766
21,700,000 Washington Public Power Supply System, Nuclear
Project No. 2, 7.375%, 7/01/12 (Pre-refunded
to 7/01/00) 7/00 at 102 AAA 24,788,777
5,615,000 Washington Public Power Supply System, Nuclear
Project No. 3, 7.250%, 7/01/16 (Pre-refunded
to 7/01/99) 7/99 at 102 Aaa 6,283,296
5,000,000 Snohomish County School District No. 2, General
Obligation, 6.200%, 12/01/12 12/03 at 102 Aaa 5,210,850
WEST VIRGINIA - 0.5%
4,250,000 West Virginia Housing Development Fund,
Alternative Minimum Tax, 7.950%, 5/01/17 11/00 at 102 Aa1 4,550,560
320,000 West Virginia Housing Development Fund,
Homeownership Mortgage, 9.100%, 1/01/14 12/95 at 102 Aaa 325,973
WISCONSIN - 1.8%
11,835,000 Wisconsin Health and Educational Facilities
Authority (Franciscan Health System),
8.500%, 3/01/20 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 13,932,990
3,000,000 Milwaukee Housing Authority, Multi-Family
Housing, 7.500%, 12/01/28 6/00 at 102 Aa 3,161,640
WYOMING - 0.3%
3,000,000 Uinta County School District No. 1, General
Obligation, 8.625%, 6/01/08 (Pre-refunded
to 6/01/97) 6/97 at 103 N/R 3,292,680
$845,875,000 Total Investments - (cost $846,201,638) - 96.0% 915,695,113
============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.6%
$ 1,100,000 District of Columbia (American Association for
Advancement of Science), Series 1995, Variable Rate
Demand Bonds, 3.950%, 10/01/22t A-1 $ 1,100,000
1,800,000 Harris County Health Facilities Development
Corporation (The Methodist Hospital), Variable
Rate Demand Bonds, 4.000%, 12/01/25t A-1+ 1,800,000
2,200,000 Massachusetts Dedicated Income Tax, Variable Rate
Demand Bonds, 3.700%, 12/01/97t VMIG-1 2,200,000
500,000 New York City 1993 Series B, Variable Rate Demand
Bonds, 4.000%, 10/01/20t VMIG-1 500,000
600,000 North Central Texas Health Facilities Development
Corporation (Presbyterian Medical Center), Variable
Rate Demand Bonds, 3.900%, 12/01/15t VMIG-1 600,000
$ 6,200,000 Total Temporary Investments - 0.6% 6,200,000
============
Other Assets Less Liabilities - 3.4% 32,381,891
Net Assets - 100% $954,277,004
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 59 $473,576,548 52%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 23 143,682,121 16
PORTFOLIO OF A+ A1 3 35,300,036 4
INVESTMENTS A, A- A, A2, A3 15 71,634,835 8
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 21 176,914,119 19
TEMPORARY Non-rated Non-rated 2 14,587,454 1
INVESTMENTS):
TOTAL 123 $915,695,113 100%
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
Con. Rating is conditional. Bonds for which the security depends upon the
completion of some act or the fulfillment of some condition are rated
conditionally. These are bonds secured by (a) earnings by projects under
construction, (b) earnings of projects unseasoned in operation experience, (c)
rentals which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches. Parenthetical rating denotes probable
credit stature upon completion of construction or elimination of basis of
condition.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC. (NMO)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 0.4%
$ 3,980,000 Alaska Housing Finance Corporation, Insured Mortgage
Program, 7.800%, 12/01/30 12/00 at 102 Aa $ 4,209,606
ARKANSAS - 0.3%
2,630,000 Arkansas Development Finance Authority, Single
Family Mortgage, 8.000%, 8/15/11 8/01 at 103 AA 2,878,588
CALIFORNIA - 11.2%
3,000,000 California Department of Water Resources (Central
Valley Project), 4.875%, 12/01/27 12/03 at 101 Aa 2,561,250
15,200,000 California General Obligation, 6.500%, 10/01/05 (WI) No Opt. Call A1 17,065,952
6,500,000 California Health Facilities Financing Authority
(Episcopal Homes Foundation), 7.850%, 7/01/15 1/96 at 102 A 6,663,605
4,000,000 California Health Facilities Financing Authority
(ValleyCare Hospital), 7.000%, 5/01/20 5/00 at 102 A 4,209,400
6,810,000 California Health Facilities Financing Authority (Kaiser
Permanente), 5.600%, 5/01/33 5/03 at 102 Aa3 6,343,447
8,745,000 Bell Community Redevelopment Agency, Tax Allocation,
6.350%, 11/01/23 11/03 at 102 Aaa 9,116,225
5,000,000 Los Angeles Community Redevelopment Agency, Tax
Allocation (Central Business District), 6.750%, 7/01/10 7/96 at 102 A- 5,132,500
6,000,000 Los Angeles Department of Water and Power, Electric
Plant, 4.750%, 10/15/20 10/03 at 102 Aa 5,087,100
Los Angeles Department of Water and Power:
10,000,000 6.400%, 5/15/28 5/01 at 102 Aa 10,351,500
6,815,000 5.400%, 11/15/31 11/03 at 102 Aa 6,284,589
12,080,000 5.375%, 2/15/34 2/04 at 102 Aa 11,060,448
5,000,000 Los Angeles County Sanitation Districts Financing
Authority, 5.000%, 10/01/23 10/03 at 100 Aa 4,421,650
5,870,000 Sacramento Municipal Utility District, 4.750%, 9/01/21 9/03 at 100 Aaa 5,053,013
13,900,000 San Diego Gas and Electric Company, 5.900%, 9/01/18 9/03 at 102 Aaa 13,855,520
6,520,000 Stanislaus County Certificates of Participation,
7.550%, 4/01/18 4/96 at 101 A- 6,652,095
COLORADO - 4.7%
4,545,000 Colorado Housing Finance Authority, Single Family
Program, Alternative Minimum Tax, 7.650%, 8/01/22 8/00 at 102 AA 4,785,476
City and County of Denver Airport System, Alternative
Minimum Tax:
1,200,000 5.950%, 11/15/98 No Opt. Call Baa 1,239,936
4,700,000 7.400%, 11/15/01 No Opt. Call Baa 5,163,561
5,000,000 7.750%, 11/15/21 11/01 at 102 Baa 5,508,950
7,625,000 6.750%, 11/15/22 11/02 at 102 Baa 7,704,224
3,500,000 7.250%, 11/15/23 11/02 at 102 Baa 3,720,185
12,250,000 8.000%, 11/15/25 11/01 at 100 Baa 13,675,410
5,000,000 7.000%, 11/15/25 11/01 at 100 Baa 5,084,450
DISTRICT OF COLUMBIA - 0.2%
2,105,000 District of Columbia Housing Finance Agency,
Alternative Minimum Tax, 8.100%, 12/01/23 12/00 at 102 AAA 2,258,244
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
FLORIDA - 3.5%
Orange County Housing Finance Authority:
$ 6,200,000 7.500%, 7/01/10 7/00 at 103 Aaa $ 6,679,818
11,035,000 7.600%, 1/01/24 7/00 at 103 Aaa 11,858,321
Palm Beach County Health Facilities Authority (JFK
Medical Center):
6,375,000 8.875%, 12/01/18 (Pre-refunded to 12/01/98) 12/98 at 102 BBB 7,303,455
4,415,000 8.875%, 12/01/18 12/98 at 102 BBB 4,957,559
3,795,000 Palm Beach County Housing Finance Agency,
7.600%, 3/01/23 9/00 at 103 Aaa 4,085,014
GEORGIA - 3.6%
Georgia Municipal Electric Authority:
17,000,000 7.900%, 1/01/08 1/98 at 102 A 18,595,280
13,125,000 7.875%, 1/01/18 (Pre-refunded to 1/01/96) 1/96 at 102 A 13,474,519
4,000,000 Athens Housing Authority, 8.125%, 12/01/05
(Mandatory put 12/01/97) No Opt. Call Baa1 4,187,720
ILLINOIS - 6.3%
15,000,000 Illinois Development Finance Authority (Columbus-
Cuneo-Cabrini Medical Center), 8.500%, 2/01/15 2/00 at 102 BBB+ 16,249,050
5,210,000 Illinois Housing Development Authority (Garden House),
6.875%, 1/01/20 1/03 at 102 A 5,441,428
2,265,000 Illinois Housing Development Authority (Village Center
Development), 6.600%, 3/01/07 3/03 at 102 A 2,420,900
21,700,000 Chicago O'Hare International Airport, Alternative
Minimum Tax, 7.500%, 1/01/17 1/00 at 102 A 23,543,198
6,300,000 Chicago O'Hare International Airport (AMR
Corporation), Alternative Minimum Tax,
7.875%, 11/01/25 11/00 at 102 Baa2 6,764,688
4,000,000 Community College District No. 508 (Cook County),
8.750%, 1/01/06 No Opt. Call Aaa 5,159,560
3,230,000 Peoria, Pekin, and Waukegan (GNMA), Alternative
Minimum Tax, 7.875%, 8/01/22 8/00 at 103 AAA 3,467,631
INDIANA - 4.9%
13,500,000 Indiana Health Facilities Financing Authority
(Bartholomew County Hospital), 7.750%, 8/15/20 8/00 at 103 AAA 15,677,010
3,710,000 Indiana Housing Finance Authority, Alternative
Minimum Tax, 7.800%, 1/01/22 7/00 at 102 Aaa 3,949,852
10,000,000 Indiana Office Building Commission, 7.250%, 7/01/12
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 11,371,100
Indianapolis Local Public Improvement Bond Bank:
3,750,000 6.750%, 2/01/20 2/03 at 102 A+ 4,005,975
8,000,000 6.500%, 2/01/22 2/98 at 100 A+ 8,141,760
5,000,000 Columbus Multi-School Building Corporation,
7.600%, 1/15/14 (Pre-refunded to 1/15/01) 1/01 at 102 N/R 5,786,000
KENTUCKY - 0.3%
2,580,000 Kentucky Housing Corporation, Alternative Minimum
Tax, 8.100%, 1/01/22 7/00 at 102 AAA 2,769,940
LOUISIANA - 0.6%
5,410,000 East Baton Rouge Mortgage Finance Authority,
Alternative Minimum Tax, 7.875%, 8/01/23 8/00 at 102 Aaa 5,793,461
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MARYLAND - 0.5%
$ 4,975,000 Maryland Community Development Administration,
Alternative Minimum Tax, 7.700%, 4/01/15 4/00 at 102 Aa $ 5,271,709
MASSACHUSETTS - 7.4%
Massachusetts Bay Transportation Authority:
7,500,000 7.000%, 3/01/10 (Pre-refunded to 3/01/00) 3/00 at 100 Aaa 8,273,550
10,800,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 12,356,928
Massachusetts Health and Educational Facilities
Authority (Daughters of Charity):
4,200,000 7.500%, 7/01/05 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 4,819,794
10,800,000 7.750%, 7/01/14 7/00 at 102 Aa 12,506,616
8,215,000 Massachusetts Health and Educational Facilities Authority
(Goddard Memorial Hospital), 9.000%, 7/01/15 7/00 at 102 Baa 9,175,662
3,385,000 Massachusetts Housing Finance Agency, Residential
Housing, Alternative Minimum Tax, 8.200%, 8/01/27 8/99 at 102 BBB+ 3,620,698
Massachusetts Water Resources Authority:
9,225,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 10,575,171
6,615,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 7,550,295
5,195,000 7.000%, 4/01/18 4/00 at 102 A 5,826,193
MICHIGAN - 2.3%
8,500,000 Michigan Hospital Finance Authority (Bay Medical
Center), 8.250%, 7/01/12 7/00 at 102 Baa1 9,119,565
4,500,000 Michigan Hospital Finance Authority (Detroit Medical
Center), 7.500%, 8/15/11 8/01 at 102 A 4,928,715
8,500,000 Michigan Strategic Fund (Waste Management, Inc.),
Alternative Minimum Tax, 6.625%, 12/01/12 12/02 at 102 A1 8,861,250
MINNESOTA - 2.1%
3,800,000 Minnesota Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax, 7.950%, 7/01/22 7/00 at 102 Aa 4,049,318
2,735,000 Minnesota Housing Finance Agency, Alternative
Minimum Tax, 7.700%, 7/01/14 7/00 at 102 Aa 2,920,324
3,555,000 Dakota, Washington and Stearns Counties, Single
Family Residential Mortgage, Alternative Minimum
Tax, 7.850%, 12/01/30 12/00 at 102 AAA 3,812,880
8,845,000 Minneapolis-St. Paul Housing and Redevelopment
Authority (Health One Obligated Group),
8.000%, 8/15/19 (Pre-refunded to 8/15/00) 8/00 at 102 Aaa 10,365,986
MISSISSIPPI - 0.2%
1,475,000 Mississippi Home Corporation, 9.250%, 3/01/12 9/00 at 103 Aaa 1,615,081
NEVADA - 0.5%
Nevada Housing Division, Alternative Minimum Tax:
2,725,000 7.850%, 10/01/10 4/00 at 102 AA 2,880,407
2,040,000 7.900%, 4/01/22 4/00 at 102 AA 2,152,792
NEW JERSEY - 0.7%
4,750,000 Camden County Pollution Control Financing Authority
(Solid Waste Disposal and Resource Recovery System),
Alternative Minimum Tax, 7.125%, 12/01/01 No Opt. Call BBB+ 4,853,883
2,000,000 Camden County Pollution Control Finance Authority
(Solid Waste Disposal and Resource Recovery System),
7.250%, 12/01/10 12/01 at 102 BBB+ 2,055,100
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW MEXICO - 1.1%
$ 10,870,000 New Mexico Mortgage Finance Authority,
7.800%, 9/01/17 9/00 at 102 AA $ 11,454,697
NEW YORK - 19.9%
Dormitory Authority of the State of New York
(City University):
6,080,000 9.250%, 7/01/99 No Opt. Call Baa1 6,977,286
15,000,000 8.750%, 7/01/03 No Opt. Call Baa1 18,103,050
Dormitory Authority of the State of New York
(State University):
9,010,000 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 10,247,794
10,000,000 7.125%, 5/15/17 (Pre-refunded to 5/15/99) 5/99 at 102 AAA 11,142,500
4,500,000 New York State Energy Research and Development
Authority, Gas Facilities (The Brooklyn Union Gas
Company), Alternative Minimum Tax, 5.600%, 6/01/25 7/03 at 102 Aaa 4,351,590
20,000,000 New York State Housing Finance Agency, Health
Facilities (New York City), 8.000%, 11/01/08 11/00 at 102 BBB+ 22,723,800
4,620,000 New York State Medical Care Facilities Finance Agency
(Columbia Presbyterian Hospital), 7.250%, 2/15/12 8/97 at 102 Aa 4,893,781
10,325,000 New York State Medical Care Facilities Finance Agency,
Hospital and Nursing Home Insured Mortgage (St.
Vincent's Hospital), 8.000%, 2/15/27 (Pre-refunded
to 8/15/97) 8/97 at 102 Aaa 11,067,987
9,860,000 New York State Medical Care Facilities Finance Agency,
Hospital and Nursing Home Insured Mortgage
(Albany Medical Center), 8.000%, 2/15/28 8/98 at 102 AAA 10,843,436
7,200,000 New York State Medical Care Facilities Finance Agency,
Hospital and Nursing Home, FHA-Insured (Buffalo
General Hospital), 7.700%, 2/15/22 (Pre-refunded
to 8/15/98) 8/98 at 102 AAA 8,014,608
16,520,000 New York State Medical Care Facilities Finance Agency
(Columbia-Presbyterian), 8.000%, 2/15/25
(Pre-refunded to 8/15/97) 8/97 at 102 Aaa 17,965,170
5,000,000 New York State Medical Care Facilities Finance Agency
(Brookdale Hospital Medical Center), 6.850%, 2/15/17 2/05 at 102 Baa1 5,231,500
5,000,000 New York State Medical Care, Health Care Center,
6.375%, 11/15/19 11/05 at 102 Aa 5,137,350
7,150,000 New York State Thruway Authority, 6.000%, 1/01/25 1/05 at 102 Aaa 7,274,482
10,000,000 New York City Municipal Assistance Corporation,
6.875%, 7/01/07 7/97 at 102 Aa 10,663,200
New York City General Obligation:
5,000,000 7.250%, 8/15/07 No Opt. Call Baa1 5,579,200
6,750,000 6.625%, 2/15/25 2/05 at 101 Baa1 6,932,723
New York City Municipal Water Finance Authority,
Water and Sewer System:
5,180,000 5.750%, 6/15/18 6/02 at 101 1/2 Aaa 5,118,254
12,875,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) 6/00 at 101 1/2 Aaa 14,708,271
7,585,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) 6/00 at 100 A 8,087,127
5,915,000 6.000%, 6/15/20 6/00 at 100 A 5,858,216
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NORTH CAROLINA - 2.8%
$ 10,500,000 North Carolina Eastern Municipal Power Agency,
6.250%, 1/01/03 1/02 at 102 A $ 10,791,375
5,640,000 North Carolina Housing Finance Agency, Alternative
Minimum Tax, 7.850%, 9/01/28 3/00 at 102 Aa 5,984,153
5,900,000 North Carolina Municipal Power Agency No. 1
(Catawba), 8.500%, 1/01/17 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 6,063,725
5,000,000 North Carolina Municipal Power Agency,
5.250%, 1/01/09 No Opt. Call A 4,897,300
OKLAHOMA - 2.3%
3,600,000 Bryan County Economic Development Authority, Single
Family Mortgage, 8.600%, 7/01/10 7/00 at 102 Baa1 3,867,192
Tulsa Municipal Airport Trust (AMR Corporation):
5,160,000 9.500%, 6/01/20 12/95 at 102 Baa2 5,291,580
8,000,000 7.375%, 12/01/20 12/00 at 102 Baa2 8,424,160
5,000,000 Tulsa Municipal Airport (AMR Corporation), Alternative
Minimum Tax, 7.600%, 12/01/30 6/01 at 102 Baa2 5,330,950
OREGON - 0.2%
2,500,000 Northern Wasco County, People's Utility District
(Bonneville Power Administration), 5.200%, 12/01/24 12/03 at 102 Aa 2,305,075
PENNSYLVANIA - 1.9%
2,790,000 Pennsylvania Housing Finance Agency, Alternative
Minimum Tax, 8.150%, 4/01/24 4/00 at 102 Aa 2,836,593
3,830,000 Allegheny County Residential Finance Authority,
Alternative Minimum Tax, 7.950%, 6/01/23 6/00 at 102 Aaa 4,091,283
9,000,000 Philadelphia Water and Wastewater, 10.000%, 6/15/05 No Opt. Call Aaa 12,481,110
RHODE ISLAND - 1.9%
5,000,000 Rhode Island Health and Educational Building
Corporation (Johnson and Wales University),
8.375%, 4/01/20 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 5,876,800
11,940,000 Rhode Island Housing and Mortgage Finance
Corporation, 7.750%, 4/01/22 4/00 at 102 AA+ 12,803,023
SOUTH CAROLINA - 0.4%
3,640,000 South Carolina Jobs-Economic Development Authority
(Carolinas Hospital System), 7.550%, 9/01/22
(Pre-refunded to 9/01/02) 9/02 at 102 Baa1 4,311,835
TENNESSEE - 0.4%
3,925,000 Tennessee Housing Development Agency, Alternative
Minimum Tax, 7.950%, 7/01/22 7/00 at 103 A1 4,181,028
TEXAS - 8.5%
4,891,379 Texas General Services Commission, 7.500%, 9/01/22 3/96 at 102 1/2 A 5,106,649
2,455,000 Texas Housing Agency, 8.125%, 9/01/06 3/96 at 102 Aa 2,543,797
6,000,000 Alliance Airport Authority (AMR Corporation),
Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 6,366,540
Arlington Independent School District, General
Obligation:
12,650,000 0.000%, 2/15/12 2/05 at 67 5/16 Aaa 4,840,776
12,640,000 0.000%, 2/15/13 2/05 at 62 29/32 Aaa 4,501,483
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 7,060,000 Austin Combined Utility System, 7.750%, 11/15/12
(Pre-refunded to 5/15/96) 5/96 at 102 Aaa $ 7,348,683
20,500,000 Dallas-Fort Worth International Airport (AMR
Corporation), Alternative Minimum Tax,
7.500%, 11/01/25 11/00 at 102 Baa2 21,673,625
4,610,000 El Paso Housing Finance Corporation, Single Family
Mortgage, 8.750%, 10/01/11 4/01 at 103 A 5,129,547
5,750,000 Houston Senior Lien, Occupancy Tax, 6.000%, 7/01/05 No Opt. Call Aaa 6,172,395
4,000,000 Houston Sewer System, 8.125%, 12/01/17
(Pre-refunded to 12/01/97) 12/97 at 102 Aaa 4,402,160
15,130,000 Lubbock Health Facilities Development Corporation
(Methodist Hospital), 7.250%, 12/01/19
(Pre-refunded to 12/01/00) 12/00 at 102 Aaa 17,346,696
UTAH - 0.4%
3,900,000 Intermountain Power Agency, 7.750%, 7/01/17
(Pre-refunded to 7/01/96) 7/96 at 102 Aaa 4,078,347
VIRGINIA - 1.2%
4,000,000 Virginia Housing Development Authority, Alternative
Minimum Tax, 6.550%, 1/01/27 1/02 at 102 Aa 4,044,840
2,000,000 Virginia Housing Development Authority,
7.050%, 5/01/18 5/02 at 102 AA 2,106,960
5,025,000 Henrico County Industrial Development Authority
(Bon Secours Health System), 7.500%, 9/01/07 8/00 at 102 A1 5,604,383
WASHINGTON - 6.6%
Washington Public Power Supply System, Nuclear
Project No. 1:
1,080,000 14.375%, 7/01/01 No Opt. Call Aaa 1,578,798
5,430,000 7.600%, 7/01/05 7/00 at 102 Aa 6,002,268
3,030,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 3,416,083
3,225,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 3,643,444
3,030,000 5.375%, 7/01/15 7/03 at 102 Aa 2,814,445
9,775,000 6.875%, 7/01/17 7/01 at 102 Aa 10,339,505
Washington Public Power Supply System, Nuclear
Project No. 2:
6,835,000 7.625%, 7/01/08 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 7,879,320
13,240,000 7.375%, 7/01/12 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 15,124,581
Washington Public Power Supply System, Nuclear
Project No. 3:
3,650,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 4,123,587
8,000,000 5.375%, 7/01/15 7/03 at 102 Aa 7,430,880
4,335,000 Tacoma Department of Public Utilities, Light Division,
9.375%, 1/01/15 (Pre-refunded to 1/01/96) 1/96 at 102 A+ 4,460,585
WYOMING - 0.2%
1,735,000 Wyoming Community Development Authority,
Alternative Minimum Tax, 8.000%, 6/01/21 5/00 at 103 Aa 1,809,725
PUERTO RICO - 0.6%
6,050,000 Puerto Rico Highway and Transportation Authority,
5.500%, 7/01/19 7/03 at 101 1/2 A 5,783,678
$933,801,379 Total Investments - (cost $906,831,486) - 98.1% 986,949,064
============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 1,300,000 Port Authority of New York and New Jersey, Versatile
============
Structure Obligations, Variable Rate Demand Bonds,
3.600%, 5/01/19t A-1+ $ 1,300,000
Other Assets Less Liabilities - 1.8% 17,549,262
Net Assets - 100% $1,005,798,326
==============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 49 $374,167,757 38%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 32 180,935,112 18
PORTFOLIO OF A+ A1 7 52,320,933 5
INVESTMENTS A, A- A, A2, A3 18 142,541,725 15
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 30 231,197,537 23
TEMPORARY Non-rated Non-rated 1 5,786,000 1
INVESTMENTS):
TOTAL 137 $986,949,064 100%
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $1,255,372,642 $915,695,113 $ 986,949,064
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 8,600,000 6,200,000 1,300,000
Cash 58,685 108,710 28,143
Receivables:
Interest 28,757,477 20,316,238 20,888,286
Investments sold 17,809,200 16,666,507 18,551,419
Prepaid Preferred shares auction fees (note 1) 248,355 83,363 316,868
Other assets 42,947 33,366 34,242
-------------- ----------- --------------
Total assets 1,310,889,306 959,103,297 1,028,068,022
-------------- ----------- --------------
Liabilities
Payable for investments purchased 14,135,474 -- 17,149,552
Accrued expenses:
Management fees (note 6) 677,091 505,202 531,977
Other 249,276 176,568 144,429
Preferred share dividends payable 757,094 362,591 415,152
Common share dividends payable 5,266,532 3,781,932 4,028,586
-------------- ----------- --------------
Total liabilities 21,085,467 4,826,293 22,269,696
-------------- ----------- --------------
Net assets (note 7) $1,289,803,839 $954,277,004 $1,005,798,326
============== ============ ==============
Preferred shares, at liquidation value $ 400,000,000 $300,000,000 $ 300,000,000
============== ============ ==============
Preferred shares outstanding 16,000 12,000 12,000
============== ============ ==============
Common shares outstanding 58,517,027 42,021,469 44,762,071
============== ============ ==============
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation value, divided by Common
shares outstanding) $ 15.21 $ 15.57 $ 15.77
============== ============ ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year ended October 31, 1995
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Investment Income
Tax-exempt interest income (note 1) $ 86,991,376 $63,183,771 $ 66,953,556
------------ ----------- ------------
Expenses:
Management fees (note 6) 7,843,756 5,834,340 6,128,810
Preferred shares--auction fees 1,083,490 781,250 700,000
Preferred shares--dividend disbursing agent fees 40,000 50,000 35,000
Shareholders' servicing agent fees and expenses 280,305 161,920 181,460
Custodian's fees and expenses 137,218 109,613 110,767
Directors' fees and expenses (note 6) 5,212 3,399 4,485
Professional fees 82,135 41,277 25,668
Shareholders' reports--printing and mailing expenses 202,924 219,211 188,519
Stock exchange listing fees 51,076 24,737 32,197
Investor relations expense 62,823 43,178 49,825
Other expenses 48,992 38,624 67,821
------------ ----------- ------------
Total expenses 9,837,931 7,307,549 7,524,552
------------ ----------- ------------
Net investment income 77,153,445 55,876,222 59,429,004
------------ ----------- ------------
Realized and Unrealized Gain (Loss)
from Investments
Net realized gain (loss) from investment transactions (note 3) (1,471,114) 208,379 732,368
Net change in unrealized appreciation or depreciation
of investments 50,905,804 42,497,416 49,233,857
------------ ----------- ------------
Net gain from investments 49,434,690 42,705,795 49,966,225
------------ ----------- ------------
Net increase in net assets from operations $126,588,135 $98,582,017 $109,395,229
============ =========== ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NPP NMA
Year ended Year ended Year ended Year ended
10/31/95 10/31/94 10/31/95 10/31/94
<S> <C> <C> <C> <C>
Operations
Net investment income $ 77,153,445 $ 77,129,687 $ 55,876,222 $ 55,902,575
Net realized gain (loss) from investment transactions (1,471,114) 727,850 208,379 (501,699)
Net change in unrealized appreciation or depreciation
of investments 50,905,804 (90,005,161) 42,497,416 (73,737,637)
-------------- -------------- ------------ ------------
Net increase (decrease) in net assets from operations 126,588,135 (12,147,624) 98,582,017 (18,336,761)
-------------- -------------- ------------ ------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (63,115,341) (64,153,906) (45,761,387) (47,153,320)
Preferred shareholders (16,186,207) (14,171,663) (11,898,209) (9,391,237)
From accumulated net realized gains from investment
transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
-------------- -------------- ------------ ------------
Decrease in net assets from distributions to shareholders (79,301,548) (78,325,569) (57,659,596) (56,544,557)
-------------- -------------- ------------ ------------
Capital Share Transactions (note 2)
Common shares:
Net proceeds from Common shares issued to shareholders due
to reinvestment of distributions from net investment income
and from net realized gains from investment transactions 1,880,388 5,959,663 -- 4,679,057
-------------- -------------- ------------ ------------
Net increase in net assets derived from capital share
transactions 1,880,388 5,959,663 -- 4,679,057
-------------- -------------- ------------ ------------
Net increase (decrease) in net assets 49,166,975 (84,513,530) 40,922,421 (70,202,261)
Net assets at beginning of year 1,240,636,864 1,325,150,394 913,354,583 983,556,844
-------------- -------------- ------------ ------------
Net assets at end of year $1,289,803,839 $1,240,636,864 $954,277,004 $913,354,583
============== ============== ============ ============
Balance of undistributed net investment income at end of year $ 2,217,688 $ 4,365,791 $ 1,576,094 $ 3,359,468
============== ============== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NMO
Year ended Year ended
10/31/95 10/31/94
<S> <C> <C>
Operations
Net investment income $ 59,429,004 $ 59,553,771
Net realized gain (loss) from investment transactions 732,368 (934,870)
Net change in unrealized appreciation or depreciation
of investments 49,233,857 (80,669,174)
-------------- --------------
Net increase (decrease) in net assets from operations 109,395,229 (22,050,273)
-------------- --------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (48,745,905) (50,212,724)
Preferred shareholders (12,294,377) (10,234,676)
From accumulated net realized gains from investment
transactions:
Common shareholders -- (1,718,919)
Preferred shareholders -- (261,160)
-------------- --------------
Decrease in net assets from distributions to shareholders (61,040,282) (62,427,479)
-------------- --------------
Capital Share Transactions (note 2)
Common shares:
Net proceeds from Common shares issued to shareholders due
to reinvestment of distributions from net investment income
and from net realized gains from investment transactions -- 4,329,373
-------------- --------------
Net increase in net assets derived from capital share
transactions -- 4,329,373
-------------- --------------
Net increase (decrease) in net assets 48,354,947 (80,148,379)
Net assets at beginning of year 957,443,379 1,037,591,758
-------------- --------------
Net assets at end of year $1,005,798,326 $ 957,443,379
============== ==============
Balance of undistributed net investment income at end of year $ 1,667,618 $ 3,278,896
============== ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At October 31, 1995, the National Funds (the "Funds") covered in this report
and their corresponding New York Stock Exchange symbols are Nuveen Performance
Plus Municipal Fund, Inc. (NPP), Nuveen Municipal Advantage Fund, Inc. (NMA)
and Nuveen Municipal Market Opportunity Fund, Inc. (NMO).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at amortized cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Funds have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At October 31, 1995, NMO had outstanding purchase commitments
that amounted to $17,149,552. There were no such purchase commitments in
either NPP or NMA.
<PAGE>
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Federal Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their net
investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains as amounts in excess of $.01 per Common share.
Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal
income tax, to retain such tax-exempt status when distributed to shareholders
of the Funds. All income dividends paid during the year ended October 31,
1995, have been designated Exempt Interest Dividends.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from securities transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of net realized capital gains, if
applicable.
<PAGE>
<TABLE>
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set by the auction agent,
except for those Series which have lengthened their current dividend periods
from seven days to three and five years (as indicated below). The number of
shares outstanding, by Series and in total, for each of the Funds is as
follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Number of shares:
Series M 4,000 3,000 4,000
Series T 4,000t 3,000 4,000tt
Series W 4,000 3,000 --
Series F 4,000t 3,000t 4,000
------ ------ ------
Total
16,000 12,000 12,000
====== ====== ======
<FN>
t Three year period tt Five year period
Preferred share auction fees paid in connection with lengthening the dividend
periods on the Series noted above have been capitalized and are being
amortized over the respective dividend periods.
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about
Derivative Financial Instruments and Fair Value of Financial Instruments which
prescribes disclosure requirements for transactions in certain derivative
financial instruments including futures, forward, swap, and option contracts,
and other financial instruments with similar characteristics. Although the
Funds are authorized to invest in such financial instruments, and may do so in
the future, they did not make any such investments during the year ended
October 31, 1995, other than occasional purchases of high quality synthetic
money market securities which were held temporarily pending the re-investment
in long-term portfolio securities.
</TABLE>
<PAGE>
<TABLE>
2. Fund Shares
Transactions in Common shares were as follows:
<CAPTION>
NPP NMA
Year ended Year ended Year ended Year ended
10/31/95 10/31/94 10/31/95 10/31/94
<S> <C> <C> <C> <C>
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions 124,648 378,516 -- 291,229
======= ======= ======= =======
<CAPTION>
NMO
Year ended Year ended
10/31/95 10/31/94
<S> <C> <C>
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- 272,855
======= =======
</TABLE>
<PAGE>
<TABLE>
3. Securities Transactions
Purchase and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the year ended October
31, 1995, were as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $88,270,920 $36,708,303 $130,147,779
Temporary municipal investments 95,250,000 56,450,000 57,920,000
SALES AND MATURITIES
Investments in municipal securities 92,863,954 51,378,024 126,540,920
Temporary municipal investments 88,650,000 51,930,000 56,620,000
=========== =========== ============
At October 31, 1995, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
At October 31, 1995, the Funds had unused capital loss carryovers available
for federal income tax purposes to be applied against future security gains,
if any. If not applied, the carryovers will expire as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Expiration year:
1997 $ 282,872 $ -- $ --
1998 516,783 -- --
1999 859,468 -- --
2000 -- -- --
2001 5,803,009 2,476,519 --
2002 -- 501,699 202,503
2003 1,471,114 -- --
---------- ---------- --------
Total $8,933,246 $2,978,218 $202,503
========== ========== ========
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On November 1, 1995, the Funds declared Common share dividend distributions
from their ordinary income that were paid December 1, 1995, to shareholders of
record on November 15, 1995, as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Dividend per share $.0900 $.0900 $.0900
====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 1995, were as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Gross unrealized:
Appreciation $81,206,832 $70,853,280 $81,920,739
Depreciation (1,290,830) (1,359,805) (1,803,161)
----------- ----------- -----------
Net unrealized appreciation $79,916,002 $69,493,475 $80,117,578
=========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS
WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each
Fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors who are affiliated with the Adviser
or to their officers, all of whom receive remuneration for their services to
the Funds from the Adviser.
</TABLE>
<PAGE>
<TABLE>
7. COMPOSITION OF NET ASSETS
At October 31, 1995, net assets consisted of:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $ 400,000,000 $300,000,000 $ 300,000,000
Common shares, $.01 par value per share 585,170 420,215 447,621
Paid-in surplus 816,018,225 585,765,438 623,768,012
Balance of undistributed net investment income 2,217,688 1,576,094 1,667,618
Accumulated net realized gain (loss) from investment transactions (8,933,246) (2,978,218) (202,503)
Net unrealized appreciation or depreciation of investments 79,916,002 69,493,475 80,117,578
-------------- ----------- --------------
Net assets $1,289,803,839 $954,277,004 $1,005,798,326
============== ============ ==============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
============== ============ ==============
</TABLE>
<PAGE>
<TABLE>
8. Investment Composition
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At October 31, 1995, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Revenue Bonds:
Housing Facilities 25% 16% 17%
Pollution Control Facilities 10 10 8
Educational Facilities 1 3 3
Transportation 3 2 7
Lease Rental Facilities -- 3 4
Health Care Facilities 5 7 10
Water / Sewer Facilities 1 3 5
Electric Utilities 13 9 9
Other 6 6 6
General Obligation Bonds 4 4 4
Escrowed Bonds 32 37 27
---- ---- ----
100% 100% 100%
==== ==== ====
Certain long-term and intermediate-term investments owned by the Funds are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S. Government agency
securities, either of which ensure the timely payment of principal and
interest in the event of default (45% for NPP, 51% for NMA and 37% for NMO).
Such insurance or escrow, however, does not guarantee the market value of the
municipal securities or the value of any of the Funds' shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<CAPTION>
Operating performance Dividends from net
investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investmentstt shareholders shareholderst
NPP
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 $14.400 $1.320 $ .847 $(1.080) $(.277)
1994 15.950 1.324 (1.529) (1.102) (.243)
1993 14.930 1.359 1.074 (1.203) (.210)
5 mos. ended
10/31/92 14.960 .574 (.067) (.455) (.082)
Year ended 5/31,
1992 14.280 1.395 .608 (1.042) (.281)
1991 13.680 1.387 .628 (1.025) (.390)
6/22/89 to
5/31/90 14.050 1.120 (.274) (.788) (.265)
<CAPTION>
NMA
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 14.600 1.330 1.012 (1.089) (.283)
1994 16.380 1.333 (1.764) (1.125) (.224)
1993 15.130 1.392 1.349 (1.254) (.211)
1992 14.950 1.447 .126 (1.130) (.239)
1991 13.780 1.458 1.165 (1.098) (.355)
12/19/89 to
10/31/90 14.050 1.088 (.168) (.716) (.287)
<CAPTION>
NMO
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 14.690 1.328 1.116 (1.089) (.275)
1994 16.580 1.334 (1.825) (1.125) (.229)
1993 15.370 1.386 1.279 (1.228) (.207)
1992 15.160 1.424 .170 (1.138) (.228)
1991 13.980 1.442 1.179 (1.104) (.337)
5/21/90 to
10/31/90 14.050 .718 .034 (.450) (.184)
<PAGE>
<CAPTION>
Distributions from capital gains
Organization Per
and offering Common
costs and share
Preferred share Net asset market
To Common To Preferred underwriting value end value end
shareholders shareholderst discounts of period of period
NPP
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 $ -- $ -- $ -- $15.210 $15.250
1994 -- -- -- 14.400 13.375
1993 -- -- -- 15.950 16.625
5 mos. ended
10/31/92 -- -- -- 14.930 15.000
Year ended 5/31,
1992 -- -- -- 14.960 15.000
1991 -- -- -- 14.280 14.625
6/22/89 to
5/31/90 -- -- (.163) 13.680 14.000
<CAPTION>
NMA
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 -- -- -- 15.570 15.125
1994 -- -- -- 14.600 13.500
1993 (.022) (.004) -- 16.380 17.000
1992 (.018) (.006) -- 15.130 15.250
1991 -- -- -- 14.950 15.750
12/19/89 to
10/31/90 -- -- (.187) 13.780 13.875
<CAPTION>
NMO
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 -- -- -- 15.770 15.000
1994 (.039) (.006) -- 14.690 13.250
1993 (.017) (.003) -- 16.580 17.250
1992 (.014) (.004) -- 15.370 15.375
1991 -- -- -- 15.160 16.000
5/21/90 to
10/31/90 -- -- (.188) 13.980 13.750
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio
Total of net
investment Total Ratio of investment
return return Net assets expenses to income Portfolio
on market on net asset end of period average net to average turnover
value** value** (in thousands) assets*** net assets*** rate
NPP
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 22.77% 13.58% $1,289,804 .78% 6.08% 7%
1994 (13.56) (2.92) 1,240,637 .79 6.01 12
1993 19.30 15.42 1,325,150 .76 6.04 4
5 mos. ended
10/31/92 2.94 2.81 1,254,800 .74* 6.16* 5
Year ended 5/31,
1992 9.94 12.50 1,252,009 .74 6.44 5
1991 12.30 12.42 1,204,809 .75 6.63 14
6/22/89 to
5/31/90 (1.45) 3.07 1,166,027 .71* 6.57* 22
<CAPTION>
NMA
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 20.69 14.62 954,277 .78 5.98 4
1994 (14.66) (4.16) 913,355 .79 5.88 10
1993 20.38 17.34 983,557 .77 6.03 13
1992 4.04 9.15 923,426 .75 6.44 7
1991 22.06 17.06 909,345 .76 6.70 5
12/19/89 to
10/31/90 (2.80) 3.25 856,867 .75* 6.65* 2
<CAPTION>
NMO
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31,
1995 21.98 15.30 1,005,798 .76 6.04 13
1994 (17.27) (4.57) 957,443 .78 5.96 18
1993 20.86 16.53 1,037,592 .76 6.05 13
1992 3.17 9.24 975,368 .74 6.40 5
1991 25.17 16.98 958,781 .75 6.70 7
5/21/90 to
10/31/90 (5.43) 2.74 901,754 .73* 6.31* 1
<FN>
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if any,
and changes in net asset value per share.
*** Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
t The amounts shown are based on Common share equivalents.
tt Net of taxes, if applicable..
</TABLE>
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Shareholders
Nuveen Performance Plus Municipal Fund, Inc.
Nuveen Municipal Advantage Fund, Inc.
Nuveen Municipal Market Opportunity Fund, Inc.
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Performance Plus Municipal Fund, Inc.,
Nuveen Municipal Advantage Fund, Inc. and Nuveen Municipal Market Opportunity
Fund, Inc. as of October 31, 1995, and the related statements of operations
and changes in net assets and the financial highlights for the periods
indicated thereon. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of October 31, 1995, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Performance Plus Municipal Fund, Inc., Nuveen Municipal Advantage Fund,
Inc. and Nuveen Municipal Market Opportunity Fund, Inc. at October 31, 1995,
and the results of their operations, changes
in their net assets and financial highlights for the periods indicated, in
conformity with generally accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
December 15, 1995
<PAGE>
Build your wealth automatically
Photographic image of Customer Service Rep at Nuveen.
Managing your portfolio takes skill, experience, and informed judgment, but
our efforts to help you build your wealth don't stop there. At Nuveen, we
offer a number of convenient ways to build your tax-free portfolio and earn
the tax-free income you need to achieve your financial goals.
Nuveen Exchange-traded fund Dividend Reinvestment Plan
Your Nuveen exchange-traded fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check, or can
be deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to set aside money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Income or capital gains taxes may be payable on dividends or
distributions that are reinvested. You'll also benefit from dollar-cost
averaging, a technique of investing at regular intervals, which allows you to
build a high-quality, tax-free portfolio conveniently and cost effectively
over time. All reinvestments are invested in full and fractional shares and
are kept in non-certificated form by the Plan Agent, Chase Manhattan Bank.
To make recordkeeping easy and convenient, each month you'll receive a
statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total number
of shares you own.
The shares you acquire by reinvesting will either be purchased on the open
market or be newly issued by the Fund. If the shares are trading at or above
net asset value at the time of valuation, the Fund will issue new shares at
the then-current market price. If the shares are trading at less than net
asset value, shares for your account will be purchased on the open market.
Dividends and distributions received to purchase shares in the open market
will be invested within 30 days of the dividend payment date; no interest will
be paid on dividends and distributions awaiting reinvestment. Because the
market price of shares may increase before purchases are completed, the
average purchase price per share may exceed the market price at the time of
valuation resulting in the acquisition of fewer shares than if the dividend or
distribution had been paid in shares issued by the Fund. A pro rata portion of
any applicable brokerage commissions on open market purchases will be paid by
Plan participants. These commissions usually will be lower than those charged
on individual transactions.
<PAGE>
You may, of course, change your distribution option or withdraw from the
Plan at any time, should your needs or situation change. Should you withdraw,
you can receive a certificate for all whole shares credited to your
reinvestment account and cash payment for fractional shares, or cash payment
for all reinvestment account shares, less brokerage commissions and a $2.50
service fee.
You also can reinvest if your shares are registered in the name of a
brokerage firm, bank, or other nominee. Just ask your investment adviser if
the firm will participate on your behalf. If not, it's easy to have the shares
registered in your name and to apply for a reinvestment account directly.
Participants whose shares are registered in the name of one firm may not be
able to transfer the shares to another firm and continue to participate in the
Plan.
The Fund reserves the right to amend or terminate the Plan at any time.
Although, the Fund reserves the right to amend the Plan to include a service
charge payable by the participants, there is no direct service charge to
participants in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll
in or withdraw from the Plan, speak with your investment adviser or call us
toll-free at 1.800.257.8787.
Photographic image of Customer Service Rep at Nuveen.
"When it comes to financial planning, your investment adviser knows your
situation best. And when we can give you the account information you need, our
motto is simple: We're here to help."
Photographic image of Customer Service Rep at Nuveen.
"At Nuveen, we make reinvesting easy. A phone call is all it takes to set up
your reinvestment account."
<PAGE>
Useful information
Photographic image of Customer Service Rep at Nuveen.
"When questions come up about your investment, we're happy to provide the
up-to-date information you and your adviser need."
Nuveen Shareholder Services:
1.800.257.8787
Call Monday through Friday, 9 a.m. to 6 p.m., EST for information on your
Nuveen Fund's current account balance, yield, dividend, net asset value,
closing price, and general information.
Dividend Reinvestment:
1.800.257.8787
Monday through Friday, 9 a.m. to 6 p.m., EST
Taking Stock Newsletter:
1.800.257.8787
Call Monday through Friday, 9 a.m. to 6 p.m., EST if you're not currently
getting our quarterly shareholder newsletter and would like to do so. We will
be happy to add your name to our mailing list.
Photographic image of woman seated and man standing behind her representing
Nuveen investors.
Many conservative investors are comfortable with Nuveen's emphasis on long
term value. That's why they depend on Nuveen for the tax-free income they need
to reach their goals.
<PAGE>
Your investment partner
Photographic image of John Nuveen, Sr., founder of Nuveen.
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships with these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent
financial planners, to bring the benefits of tax-free investing to you. These
advisers are experts at identifying your needs and recommending the best
solutions for your situation. Together we make a powerful team, helping you
create a successful investment plan that meets your needs today and in the
future.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF2-DEC 95
