Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
PERFORMANCE PLUS (NPP)
MUNICIPAL ADVANTAGE (NMA)
MUNICIPAL MARKET OPPORTUNITY (NMO)
SEMIANNUAL REPORT/APRIL 30, 1996
Photographic image of man seated at breakfast table with wife standing behind
him.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
10 Fund performance
12 Commonly used terms
14 Portfolio of investments
42 Statement of net assets
43 Statement of operations
44 Statement of changes in net assets
46 Notes to financial statements
52 Financial highlights
<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."
The past 12 months provided a welcome rebound for investors in municipal
bonds, reversing the declines of a year earlier. As long-term interest rates
fell in the last half of 1995, the Nuveen funds continued to provide
attractive levels of dividend income.
Currently, we are experiencing a certain degree of uncertainty in the
markets, as the economy continues to send mixed signals about the pace of
growth and the potential for increased inflation. Although there is no solid
evidence that inflation will reappear, the mere specter has been enough to
keep some investors on the sidelines. The good news is that the Federal
Reserve remains committed to a policy of low inflation and modest economic
growth, which should bode well for the bond markets and bond investors.
During the first part of 1996, investors found opportunities to purchase
higher yielding bonds with strong credit quality. Tax-free securities--and the
taxable-equivalent yields they offer--are bringing investors back to the bond
market. Diminished concerns about a flat tax and other tax reform proposals
that had potential implications for tax-free investments have also bolstered
interest in municipal bonds and bond funds.
Municipal bond funds continue to be a prudent way to invest for the long
term, offering investors quality and an attractive source of tax-free income.
As of April 30, 1996, the current annual yield on share price for the
exchange-traded funds covered in this report ranged from 6.86% to 6.98%. To
match these yields, an investor in the 36% federal income tax bracket would
have had to earn at least 10.72% on taxable alternatives. Without question,
taxable yields at this level on investments of comparable quality can be
difficult to achieve in today's markets.
<PAGE>
With the strength of the bond market last year, some of these funds enjoyed
a recovery in share prices over the levels of April 30, 1995, as well as
attractive total returns. The 12-month total returns on net asset value ranged
from 6.55% to 7.98%, equivalent to taxable investments returning 10.71% to
12.02%.
As you may know, on June 30, 1996, I will be retiring as chairman and chief
executive officer of John Nuveen & Co. Incorporated and as chairman of the
board of the Nuveen exchange-traded funds. As I look back over the 41 years I
have spent at Nuveen, I'm proud to have been associated with a firm that holds
integrity, honesty, and value as the cornerstones of its business. I'm
confident that these traditions will continue to be the hallmarks of Nuveen.
Over the past few years, I have been working closely with other Nuveen
managers to ensure that the company and the funds continue to be guided by
strong and talented management. Timothy R. Schwertfeger, who has been with
Nuveen since 1977, will succeed me as chief executive officer and chairman of
Nuveen. He currently serves as executive vice president of Nuveen and
president of the board of directors for the Nuveen exchange-traded funds. I am
very confident in his abilities and those of the entire Nuveen management
team.
The management transition has been well planned, and it will have no effect
on portfolio management or the way dividends are set.
Our focus will continue to be on building shareholder value, providing
research-oriented management, and maintaining our leadership role in the
municipal bond market. With this focus, we anticipate many more years of
progress and accomplishment for our shareholders and our firm.
As this will be the last letter for these funds in which I have the
opportunity to address you, I'd like to take this occasion to thank you for
selecting Nuveen exchange-traded funds. We appreciate your investment in
Nuveen, and we look forward to reports of continued success in the months
ahead.
Sincerely,
Richard J. Franke
Chairman of the Board
June 17, 1996
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, discusses investment
performance and recent factors affecting the municipal market.
What are the best measures of fund performance?
There are many ways to gauge fund performance, each of which provides certain
insights. Total return is generally recognized as one comprehensive measure of
performance. We use the term "total return" to refer to a share's appreciation
plus reinvested dividend income and capital gain distributions, if applicable.
In 1994, total returns for municipal bond funds--and the entire bond
market--declined, in one of the most difficult periods for bonds in decades.
This was immediately followed by 1995's exceptional market recovery, which
resulted in a rebound in total returns. During the first part of 1996,
municipal bond funds have continued to provide solid total returns, although
at a slightly lower level than during 1995's bull market. The events of these
past few years illustrate the importance of considering risk, or variability
of returns, when comparing total returns. Nuveen's prudent approach to
management protected investors from wide swings in performance by maintaining
a higher level of value than its peer group during 1994's bear market and
participating only slightly less in 1995's recovery.
Another important measure of fund performance involves assessing whether a
fund has met its stated investment goals. At Nuveen, we continue to emphasize
our funds' goals of providing dependable tax-free dividends and adhering to a
value investing approach. In this regard, the steadiness of dividends over the
long term is a good practical measure of success.
<PAGE>
Photographic image of Tom Spalding, Portfolio Manager of Nuveen. Tom Spalding,
head of Nuveen's portfolio management team, answers investors' questions on
developments in the municipal market.
Some funds' discounts seem to have narrowed over the past few months. What
caused this improvement?
To understand the reasons for this improvement, it may be helpful to remember
that each share has two prices: the net asset value (NAV), which represents
the underlying value of the bonds, and the share price, which is the fund's
price on the stock exchange. As with other securities, share prices for
municipal bond funds change frequently, driven by investors' demand for
shares. When a share's NAV is higher than its share price, we say that the
shares can be purchased at a discount.
In 1995, the recovery of the bond market meant that the net asset values for
some funds appreciated more quickly than their share prices, widening
discounts for a while. This is not unusual, as the market often takes time to
recognize underlying value balanced against the various factors that affect
investor decisions, such as sentiment regarding future interest rates,
inflation forecasts, the relative strength of the stock market, and
legislative and tax outlooks. Over the past few months, investor worries about
tax reform--and the potential effect of a flat tax proposal on tax-free
investments--have waned somewhat. The combination of higher yields, concerns
about the vulnerability of the stock market, and broker recommendations has
prompted a greater demand for municipal bonds and bond funds. With increased
demand, share prices have risen, resulting in narrower discounts. In fact,
some exchange-traded funds are now trading at a premium, that is, their share
prices are higher than their NAVs.
<PAGE>
What caused the dividends of some funds to decline recently?
All Nuveen exchange-traded funds are structured to provide an attractive
stream of tax-free income. Some of our funds, including the ones covered in
this report, use leverage as an additional way to enhance that income stream.
To achieve this, a leveraged fund issues preferred as well as common shares;
the pre ferred shares pay lower short-term rates to investors looking for
short-term liquidity. Proceeds from the sale of preferred shares are used to
buy additional bonds, and common shareholders earn extra income from the
difference between the long-term rates earned on the bonds in the portfolio
and the short-term rates paid to preferred shareholders. As long as short-term
rates are lower than those of the bonds in the portfolio, common shareholders
receive more income than they would from an unleveraged fund.
It is important to remember that leverage can increase NAV volatility as
well as investment potential. Also, a sudden rise in interest rates, such as
we experienced in 1994, can affect dividends. On average, short-term rates
have been higher over the past two years than they were in the early 1990s.
This has resulted in higher rates for the preferred shareholders and less
income available for common share dividends.
As we have seen recently, bond calls can also act to lower dividends. As the
Federal Reserve Board made a succession of rate cuts between July 1995 and
January 1996, long-term municipal bond yields reacted by declining almost 130
basis points from their position at the beginning of 1995. This lower
long-term rate environment caused the call, or early redemption, of many bonds
with higher yields. These older bonds have been replaced in some portfolios
with the bonds available in the market today, most of which have lower yields.
<PAGE>
What has been Nuveen's investment approach during this period?
Because we believe that a value approach offers investors greater price
stability in uncertain markets, Nuveen continues to pursue value investing as
the optimal way to meet our investors' objectives. We define value investing
as a disciplined approach to security selection and portfolio construction
designed to deliver above-market performance by identifying individual bonds
with current yields, prices, credit quality, and future prospects that are
exceptionally attractive in relation to other bonds in the market. This
approach was rewarded over the past year, as we saw many of our portfolio
holdings upgraded by the national rating agencies, indicating that our
Research Department's judgments about credit quality were on target.
As opportunity allowed, we moved to protect current income by investing a
larger percentage of our portfolios in non-callable bonds. These bonds cannot
be redeemed before maturity, so their yield is assured for the long term even
if interest rates continue to decline. As another measure of income
protection, we also purchased an increased number of bonds at discounts from
their par value. Because these bonds have coupon rates slightly below market
levels, they are less likely to be called from our portfolios, assuring more
stable yields for our investors.
<PAGE>
<TABLE>
NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC.
NPP
Dividends of NPP have been consistently at an attrac tive level despite a
modest reduction in February, reflecting the effects of bond calls.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/09/95 $0.0900
6/13/95 $0.0900
7/12/95 $0.0900
8/11/95 $0.0900
9/13/95 $0.0900
10/11/95 $0.0900
11/13/95 $0.0900
12/13/95 $0.0900
1/10/96 $0.0900
2/13/96 $0.0865
3/13/96 $0.0865
4/11/96 $0.0865
<CAPTION>
FUND HIGHLIGHTS 4/30/96
<S> <C>
Yield 6.98%
Taxable-equivalent yield 10.91%
Annual total return on NAV 6.55%
Taxable-equivalent total return 10.71%
Share price $14.875
NAV $14.84
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN MUNICIPAL ADVANTAGE FUND, INC.
NMA
Dividends of NMA have been consistently at an attractive level despite a
modest reduction in February, reflecting the effects of bond calls.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/09/95 $0.0900
6/13/95 $0.0900
7/12/95 $0.0900
8/11/95 $0.0900
9/13/95 $0.0900
10/11/95 $0.0900
11/13/95 $0.0900
12/13/95 $0.0900
1/10/96 $0.0900
2/13/96 $0.0870
3/13/96 $0.0870
4/11/96 $0.0870
<CAPTION>
FUND HIGHLIGHTS 4/30/96
<S> <C>
Yield 6.96%
Taxable-equivalent yield 10.88%
Annual total return on NAV 7.24%
Taxable-equivalent total return 11.33%
Share price $15.00
NAV $15.21
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NMO
Dividends of NMO have been consistently at an attractive level despite a
modest reduction in February, reflecting the effects of bond calls.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/09/95 $0.0900
6/13/95 $0.0900
7/12/95 $0.0900
8/11/95 $0.0900
9/13/95 $0.0900
10/11/95 $0.0900
11/13/95 $0.0900
12/13/95 $0.0900
1/10/96 $0.0900
2/13/96 $0.0865
3/13/96 $0.0865
4/11/96 $0.0865
<CAPTION>
FUND HIGHLIGHTS 4/30/96
<S> <C>
Yield 6.86%
Taxable-equivalent yield 10.72%
Annual total return on NAV 7.98%
Taxable-equivalent total return 12.02%
Share price $15.125
NAV $15.48
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, April 30, 1996) 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, this tax rate is assumed to
be 36% for shareholders, based on incomes of $121,300-$263,750 for investors
filing singly, and $147,700-$263,750 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 liabili ties. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by its total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor subject to a given fed eral income tax rate would
need to obtain from a fully taxable investment to equal the Fund's stated
total return on NAV.
Leverage
A fund structure that enhances the income produced for common shareholders by
a long-term municipal bond fund through the issuance of short-term preferred
shares. Preferred shareholders receive short-term tax-free income, while the
proceeds can be used to purchase additional long-term bonds, thus increasing
the portfolio's income for common shareholders.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six months ended April 30, 1996. Any future repur
chases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
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%
$ 3,585,000 Alabama Housing Finance Authority, Single Family
Mortgage (GNMA), 8.000%, 10/01/20 10/98 at 102 AAA $ 3,787,337
3,700,000 Alabama Water Pollution Control Authority,
6.750%, 8/15/17 8/05 at 100 Aaa 3,986,528
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ALASKA - 0.6%
615,000 Alaska Housing Finance Corporation, Collateralized
Home Mortgage, 8.375%, 12/01/16 12/96 at 103 Aaa 617,306
1,735,000 Alaska Housing Finance Corporation, Insured
Mortgage Program, 7.800%, 12/01/30 12/00 at 102 Aa 1,783,198
4,495,000 Alaska Housing Finance Corporation, Collateralized
Veterans Mortgage Program, 7.450%, 12/01/29 6/00 at 102 Aaa 4,657,899
- ---------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.5%
5,765,000 Yuma Regional Medical Center, 8.000%, 8/01/17 8/02 at 101 1/2 A- 6,422,556
- ---------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.6%
19,995,000 Arkansas Development Finance Authority, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.400%, 8/01/20 8/98 at 102 AAA 20,872,781
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.9%
24,000,000 California Department of Veterans Affairs, Home
Purchase, Alternative Minimum Tax,
8.300%, 8/01/19 8/98 at 102 Aa 24,924,720
11,900,000 California Public Works Board (California State
University), 6.250%, 9/01/16 9/00 at 102 A 12,050,535
13,820,000 Loma Linda (Loma Linda University Medical Center),
7.000%, 12/01/22 12/00 at 102 Aaa 15,446,752
24,265,000 Los Angeles Department of Water and Power,
4.750%, 11/15/19 11/03 at 102 Aa 20,186,054
13,450,000 Ontario Redevelopment Authority, 7.200%, 8/01/17 No Opt. Call Aaa 15,795,815
Palmdale Community Redevelopment Agency:
20,420,000 7.150%, 2/01/10 No Opt. Call AAA 20,632,368
2,325,000 8.000%, 4/01/16 No Opt. Call Aaa 2,845,591
7,500,000 Sacramento Municipal Utility District,
4.750%, 9/01/21 9/03 at 100 Aaa 6,189,150
8,140,000 San Bernadino Joint Powers Finance Authority,
5.500%, 12/01/20 12/05 at 102 Con(A) 7,392,015
10,000,000 San Bernadino, Certificates of Participation,
5.500%, 8/01/15 8/05 at 102 Aaa 9,514,800
4,650,000 Southern California Public Power Authority (Palo
Verde Project), 5.000%, 7/01/15 7/03 at 102 Aa 4,078,469
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
COLORADO - 3.1%
$ 5,000,000 Castle Rock Ranch Public Improvements Authority,
6.250%, 12/01/17 12/15 at 100 AA(p) $ 4,961,650
City and County of Denver Airport System,
Alternative Minimum Tax:
6,470,000 8.750%, 11/15/23 11/01 at 102 Baa 7,700,465
11,870,000 8.000%, 11/15/25 11/00 at 102 Baa 13,215,702
3,595,000 8.000%, 11/15/25 11/01 at 100 Baa 4,003,787
5,000,000 7.250%, 11/15/25 11/02 at 102 Baa 5,264,400
4,720,000 7.000%, 11/15/25 11/01 at 100 Baa 4,798,588
- ---------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.2%
11,520,000 Florida Housing Finance Agency, Home Mortgage
(GNMA), Alternative Minimum Tax,
8.300%, 6/01/20 12/98 at 103 Aaa 11,965,478
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 29,189,064
- ---------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.5%
Georgia Municipal Electric Authority:
9,075,000 8.375%, 1/01/20 1/97 at 102 A+ 9,487,913
17,500,000 8.375%, 1/01/20 1/97 at 102 A 18,296,250
10,000,000 Fulton-DeKalb Hospital Authority (Grady Memorial),
5.500%, 1/01/20 7/03 at 102 Aaa 9,341,500
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 9,818,370
10,000,000 Monroe County Development Authority, Pollution
Control (Georgia Power Company), 6.750%, 1/01/24 10/99 at 102 A1 10,366,700
- ---------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 6.5%
10,600,000 Illinois Development Finance Authority (Columbus-
Cuneo-Cabrini Medical Center), 8.500%, 2/01/15
(Pre-refunded to 2/01/00) 2/00 at 102 Baa 12,149,932
Illinois Development Finance Authority, Multi-Family
Housing (Town and Garden Apartments Project),
Alternative Minimum Tax:
6,730,000 7.800%, 3/01/06 3/02 at 102 BBB+ 7,053,646
5,960,000 7.200%, 9/01/08 3/02 at 102 BBB+ 6,131,290
14,020,000 Illinois Health Facilities Authority (Rush-Presbyterian-
St. Luke's Hospital), 7.400%, 10/01/20 7/96 at 102 Aa 14,348,489
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 5,920,798
4,620,000 7.200%, 8/15/07 8/99 at 102 Aa 4,920,947
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
Chicago General Obligation:
$ 2,000,000 9.250%, 1/01/13 (Pre-refunded to 7/01/97) 7/97 at 102 A $ 2,162,000
13,000,000 7.000%, 1/01/13 7/96 at 101 Aaa 13,202,670
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 6,394,036
9,820,000 Chicago O'Hare International Airport (United
Airlines), 8.200%, 5/01/18 5/99 at 103 Baa2 10,646,058
- ---------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.2%
5,250,000 Indiana Bond Bank, 6.000%, 2/01/16 2/04 at 102 A 5,249,423
5,805,000 Indiana Office Building Commission,
8.500%, 7/01/04 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 6,229,752
5,000,000 Indianapolis Local Bond Bank, 8.500%, 2/01/18
(Pre-refunded to 2/01/98) 2/98 at 102 A+ 5,469,300
5,000,000 Fort Wayne South Side School Building Corporation,
6.125%, 1/15/12 1/04 at 102 Aaa 5,158,150
5,730,000 Michigan City School Building Corporation,
6.125%, 12/15/09 12/04 at 102 Aaa 5,984,355
- ---------------------------------------------------------------------------------------------------------------------------
IOWA - 1.5%
18,575,000 Iowa Finance Authority, Single Family Mortgage
(GNMA), Alternative Minimum Tax,
8.250%, 5/01/20 11/98 at 102 Aaa 19,523,254
- ---------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.2%
2,040,000 Sedgwick and Shawnee Counties, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
7.875%, 12/01/21 6/99 at 103 Aaa 2,172,090
- ---------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.9%
10,000,000 Carroll County Pollution Control (Kentucky Utilities
Company), 7.450%, 9/15/16 9/02 at 102 Aa2 11,291,500
- ---------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.1%
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 6,387,194
7,630,000 Jefferson Parish Home Mortgage Authority, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 7.875%, 12/01/21 12/00 at 103 Aaa 8,022,106
5,630,000 New Orleans Housing Development Corporation
(Curran Place Apartments), 7.700%, 8/01/23 6/03 at 100 AAA 6,008,336
6,500,000 Shreveport, Water and Sewer, 5.950%, 12/01/14 12/03 at 103 Aaa 6,531,395
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MAINE - 0.8%
$ 11,000,000 Maine State Housing Authority, 5.700%, 11/15/26 2/04 at 102 AA- $ 10,292,700
- ---------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.2%
7,475,000 Montgomery County Housing Opportunities
Commission, 6.250%, 7/01/28 7/04 at 102 Aa 7,552,591
7,090,000 Takoma Park (Washington Adventist Hospital),
6.500%, 9/01/12 No Opt. Call Aaa 7,722,712
- ---------------------------------------------------------------------------------------------------------------------------
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 7,991,255
14,375,000 7.875%, 3/01/21 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 16,594,356
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+ 4,389,320
4,475,000 Massachusetts Housing Finance Agency, Multi-Family
Residential Development, Alternative Minimum
Tax, 7.650%, 2/01/28 8/99 at 102 Aaa 4,711,862
12,940,000 Massachusetts Housing Finance Authority, Single
Family Housing, Alternative Minimum Tax,
8.400%, 12/01/16 6/98 at 102 Aa 13,536,534
Massachusetts Municipal Wholesale Electric
Company:
12,210,000 8.750%, 7/01/18 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 13,137,960
540,000 8.750%, 7/01/18 7/97 at 102 A 625,750
8,000,000 Massachusetts Water Resources Authority,
7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 8,970,640
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 11,292,024
- ---------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.4%
4,455,000 Grand Rapids Housing Corporation, Multi-Family
Housing, 7.375%, 7/15/41 1/04 at 104 AAA 4,802,000
- ---------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.3%
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 15,964,338
22,865,000 St. Paul Housing and Redevelopment Authority
(Civic Center Project), 7.100%, 11/01/23 11/15 at 103 Aaa 25,786,232
St. Paul Housing and Redevelopment Authority,
Single Family Mortgage:
2,685,000 6.400%, 3/01/21 3/05 at 102 Aaa 2,726,644
10,000,000 6.800%, 3/01/28 3/05 at 102 19/32 Aaa 10,568,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MISSOURI - 0.9%
$ 10,395,000 Missouri Housing Development Commission, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.300%, 5/01/19 5/98 at 102 AAA $ 10,858,305
- ---------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.3%
15,290,000 Nebraska Investment Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
8.125%, 8/15/38 8/98 at 102 Aaa 15,949,611
- ---------------------------------------------------------------------------------------------------------------------------
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- 1,568,808
2,440,000 7.900%, 6/01/06 6/98 at 102 A- 2,622,634
8,285,000 7.900%, 6/01/09 (Pre-refunded to 6/01/98) 6/98 at 102 A- 9,026,093
5,100,000 Washoe County (Washoe Medical Center),
7.600%, 6/01/19 (Pre-refunded to 6/01/99) 6/99 at 102 A 5,610,357
- ---------------------------------------------------------------------------------------------------------------------------
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 3,297,180
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.9%
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 27,010,686
4,000,000 New York State Medical Care Facilities Finance
Agency, FHA-Insured Mortgage (St. Luke's-Roosevelt
Hospital Center), 7.375%, 2/15/19 2/00 at 102 AA 4,224,440
14,750,000 New York State Medical Care Facilities Finance
Agency (Mental Health Services), 5.375%, 2/15/14 2/04 at 102 Aaa 13,802,313
15,000,000 New York State Urban Development Corporation,
Correctional Facilities, 7.250%, 1/01/14
(Pre-refunded to 1/01/00) 1/00 at 102 Aaa 16,604,850
Dormitory Authority of the State of New York
(State University):
4,350,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 4,926,723
4,000,000 6.000%, 5/15/17 5/00 at 100 Baa1 3,849,760
9,295,000 New York City Municipal Assistance Corporation,
7.625%, 7/01/08 7/99 at 102 Aa 10,193,083
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
New York City General Obligation:
$ 4,150,000 8.500%, 8/01/08 (Pre-refunded to 8/01/97) 8/97 at 102 Aaa $ 4,465,940
850,000 8.500%, 8/01/08 8/97 at 102 Baa1 907,758
7,560,000 6.625%, 8/01/14 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 8,431,214
440,000 6.625%, 8/01/14 8/02 at 101 1/2 Aaa 468,741
16,295,000 5.750%, 2/01/15 2/06 at 101 1/2 Baa1 15,037,515
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 7,125,040
8,350,000 8.250%, 6/15/16 (Pre-refunded to 6/15/97) 6/97 at 102 Aaa 8,928,238
11,530,000 7.625%, 6/15/16 (Pre-refunded to 6/15/97) 6/97 at 101 1/2 Aaa 12,193,090
- ---------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.9%
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 19,464,510
8,125,000 7.250%, 1/01/21 1/97 at 102 A 8,379,313
8,250,000 North Carolina Municipal Power Agency No. 1
(Catawba), 7.000%, 1/01/16 1/98 at 102 A 8,596,665
- ---------------------------------------------------------------------------------------------------------------------------
OHIO - 1.1%
8,750,000 Ohio Housing Finance Agency, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
7.650%, 3/01/29 9/99 at 102 AAA 9,187,675
Toledo-Lucas County Port Authority, Alternative
Minimum Tax:
855,000 8.250%, 11/15/99 No Opt. Call N/R 895,450
1,830,000 8.375%, 11/15/04 11/99 at 102 N/R 1,888,908
1,260,000 8.250%, 11/15/04 11/99 at 102 N/R 1,296,981
965,000 8.875%, 5/15/05 5/00 at 102 N/R 996,884
- ---------------------------------------------------------------------------------------------------------------------------
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 10,895,381
4,475,000 Comanche County Hospital Authority,
8.050%, 7/01/16 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 5,027,305
- ---------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.5%
5,390,000 Pennsylvania Higher Educational Facilities Authority
(Thomas Jefferson University), 7.750%, 11/01/15 11/00 at 102 Aa 6,167,238
- ---------------------------------------------------------------------------------------------------------------------------
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+ 10,469,500
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
SOUTH CAROLINA - 2.7%
$ 25,365,000 South Carolina Housing Authority, Homeownership
Mortgage Purchase, Alternative Minimum Tax,
8.600%, 7/01/19 7/98 at 102 Aa $ 26,712,135
8,000,000 Piedmont Municipal Power Agency, 7.250%, 1/01/22 1/00 at 100 A 8,171,280
- ---------------------------------------------------------------------------------------------------------------------------
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 5,081,240
370,000 7.625%, 11/01/13 11/98 at 102 Aa 376,893
- ---------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.8%
2,835,000 Tennessee Housing Development Agency,
7.650%, 7/01/06 7/03 at100 Aa 2,992,399
7,330,000 Memphis Health Educational and Housing Facilities
Board (Riverdale Plaza Apartments),
6.350%, 7/20/28 1/03 at 103 AAA 7,360,713
- ---------------------------------------------------------------------------------------------------------------------------
TEXAS - 11.5%
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 7,559,625
9,570,000 Texas Veterans' General Obligation,
8.300%, 12/01/16 (Pre-refunded to 12/01/99) 12/99 at 100 AAA 10,776,586
11,800,000 Austin Combined Utility System, 5.750%, 11/15/16 11/02 at 100 Aaa 11,447,180
2,355,000 Bexar County Housing Finance Corporation,
10.875%, 3/01/10 9/96 at 101 A 2,394,705
25,000,000 Brazos River Authority, Pollution Control (Houston
Lighting and Power Company Project),
7.625%, 5/01/19 7/99 at 102 A3 27,171,250
20,000,000 Dallas-Fort Worth International Airport (American
Airlines, Inc.), Alternative Minimum Tax,
7.500%, 11/01/25 11/00 at 102 Baa2 21,257,400
7,370,000 Fort Worth Housing Finance Corporation,
8.500%, 10/01/11 10/01 at 103 Aa 8,000,872
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 4,662,463
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 729,288
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 27,207,180
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 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 $ 15,100,123
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 9,772,560
- ---------------------------------------------------------------------------------------------------------------------------
UTAH - 2.0% Intermountain Power Agency:
11,660,000 7.875%, 7/01/14 7/96 at 102 Aa 11,957,446
13,500,000 7.200%, 7/01/19 7/97 at 102 Aa 14,087,654
- ---------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.9%
11,000,000 Vermont Housing Finance Agency, Alternative
Minimum Tax, 7.000%, 11/01/27 11/04 at 102 A1 11,413,929
- ---------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.9%
10,865,000 Fairfax County Water Authority, 7.250%, 1/01/27
(Pre-refunded to 1/01/00) 1/00 at 102 Aaa 12,027,445
- ---------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.5%
Washington Public Power Supply System, Nuclear
Project No. 1:
22,305,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 24,684,943
17,985,000 7.500%, 7/01/15 7/99 at 102 Aa 19,414,627
7,500,000 6.000%, 7/01/17 7/99 at 100 Aa 7,242,374
16,000,000 5.700%, 7/01/17 7/03 at 102 Aaa 15,399,519
4,000,000 Washington Public Power Supply System, Nuclear
Project No. 3, 5.700%, 7/01/18 7/03 at 102 Aa 3,717,199
- ---------------------------------------------------------------------------------------------------------------------------
$1,181,955,000 Total Investments - (cost $1,184,457,117) - 97.7% 1,244,302,597
================
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.5%
$ 100,000 California Health Facilities Financing Authority
(Sutter Health), Series 1990-A, Variable Rate
Demand Bonds, 3.600%, 3/01/20+ VMIG-1 $ 100,000
1,400,000 Clark County Industrial Development Authority
(Nevada Cogeneration Association), Alternative
Minimum Tax, Variable Rate Demand Bonds,
4.250%, 11/01/20+ VMIG-1 1,400,000
2,200,000 Santa Ana Health Facilities Authority (Town &
Country), Variable Rate Demand Bonds,
3.500%, 10/01/20+ A-1 2,200,000
2,900,000 University of Michigan Hospital, Adjustable Rate
Demand Bonds, 4.100%, 12/01/27+ VMIG-1 2,900,000
$ 6,600,000 Total Temporary Investments - 0.5% 6,600,000
================
Other Assets Less Liabilities - 1.8% 22,828,781
Net Assets - 100% $1,273,731,378
==============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 64 $ 685,192,699 55%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 27 264,726,358 21
PORTFOLIO OF A+ A1 5 41,127,162 3
INVESTMENTS A, A- A, A2, A3 17 132,864,674 11
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 14 115,313,481 9
TEMPORARY Non-rated Non-rated 4 5,078,223 1
INVESTMENTS):
TOTAL 131 $1,244,302,597 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
Con. Rating is conditional. Bonds for which the security depends upon the
completion of some act or the fulfillment of some condition are rated
conditionally. These are bonds secured by (a) earnings by projects under
construction, (b) earnings of projects unseasoned in operation experience, (c)
rentals which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches. Parenthetical rating denotes probable
credit stature upon completion of construction or elimination of basis of
condition. (p) Rating is provisional. A provisional rating assumes the
successful completion of the project being financed by the issuance of the
bonds being rated and indicates that payment of debt service requirements is
largely or entirely dependent upon the successful and timely completion of the
project. + The security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MUNICIPAL 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 (Pre-refunded to 12/01/02) 12/02 at 102 Aa $ 3,950,786
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 12.7%
10,000,000 California Health Facilities Financing Authority
(Catholic Healthcare West), 7.000%, 7/01/20
(Pre-refunded to 7/01/99) 7/99 at 102 Aaa 10,942,600
4,500,000 California Health Facilities Financing Authority
(Valley Care Hospital), 7.000%, 5/01/20 5/00 at 102 A 4,751,280
24,260,000 California Public Works Board (Regents of the
University of California), 5.500%, 6/01/21 6/03 at 102 Con(A1) 22,097,221
7,535,000 Contra Costa County Home Mortgage (GNMA),
Alternative Minimum Tax, 7.750%, 5/01/22 No Opt. Call Aaa 9,130,084
Los Angeles Department of Water and Power:
12,455,000 4.750%, 11/15/19 11/03 at 102 Aa 10,361,315
10,000,000 6.400%, 5/15/28 5/01 at 102 Aa 10,366,400
3,950,000 Northern California Power Agency, 7.150%, 7/01/24 7/98 at 102 A 4,211,332
14,490,000 Palm Desert Financing Authority, Tax Allocation,
6.125%, 8/01/22 8/02 at 102 Aaa 14,647,217
Palmdale Community Redevelopment Agency:
5,000,000 7.375%, 2/01/12 No Opt. Call AAA 5,174,500
5,000,000 8.000%, 3/01/16 No Opt. Call Aaa 6,116,850
9,315,000 Perris Single Family Mortgage, Alternative Minimum
Tax, 7.600%, 1/01/23 No Opt. Call Aaa 11,071,995
10,585,000 Southern California Public Power Authority,
7.375%, 7/01/21 7/96 at 102 1/2 Aa 10,915,464
- ---------------------------------------------------------------------------------------------------------------------------
COLORADO - 1.2%
9,380,000 City and County of Denver Airport System,
Alternative Minimum Tax, 8.500%, 11/15/23 11/00 at 102 Baa 10,813,545
- ---------------------------------------------------------------------------------------------------------------------------
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 6,794,766
- ---------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.3%
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- 5,605,800
5,555,000 Dade County Health Facilities Authority (South
Shore Hospital), 7.600%, 8/01/24 8/00 at 102 AA 5,989,512
10,990,000 Tampa (Allegany Health System), 5.125%, 12/01/23 12/03 at 102 Aaa 9,667,024
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
GEORGIA - 1.7%
$ 11,310,000 Municipal Electric Authority of Georgia,
8.125%, 1/01/17 1/98 at 102 A $ 12,098,194
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 4,098,000
- ---------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 8.5%
10,750,000 Illinois Development Finance Authority (Columbus-
Cuneo-Cabrini Medical Center), 8.500%, 2/01/15
(Pre-refunded to 2/01/00) 2/00 at 102 Baa 12,321,865
11,625,000 Illinois Educational Facilities Authority (The
University of Chicago), 5.700%, 12/01/25 12/03 at 102 Aaa 10,848,218
4,210,000 Illinois Health Facilities Authority (West Suburban
Hospital), 8.000%, 8/01/02 8/97 at 102 A 4,400,250
16,000,000 Illinois Health Facilities Authority (ServantCor),
7.875%, 8/15/19 (Pre-refunded to 8/15/99) 8/99 at 102 BBB+ 17,787,360
7,905,000 Illinois Health Facilities Authority (Riverside Medical
Center), 6.750%, 11/01/15 11/99 at 100 Baa1 7,993,062
7,825,000 Illinois Housing Development Authority, Alternative
Minimum Tax, 8.100%, 2/01/22 8/98 at 102 Aa 8,144,182
3,000,000 Chicago General Obligation, 9.200%, 1/01/05
(Pre-refunded to 7/01/97) 7/97 at 102 A 3,240,030
11,800,000 Metropolitan Pier &Exposition Authority
(McCormick Place Expansion Project),
6.500%, 6/15/27 6/03 at 102 A+ 11,964,846
2,500,000 Regional Transportation Authority, General
Obligation, 7.200%, 11/01/20 No Opt. Call Aaa 2,920,125
- ---------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.0%
9,000,000 Indiana Health Facilities Financing Authority
(Community Hospital Projects), 5.700%, 5/15/22 5/06 at 102 Aaa 8,583,660
7,425,000 Fort Wayne International Airport Building
Corporation, 5.900%, 1/01/14 1/04 at 101 Aa 7,296,473
3,215,000 Mooresville Consolidated School Building
Corporation, 6.400%, 7/15/15 1/04 at 102 A 3,295,150
- ---------------------------------------------------------------------------------------------------------------------------
IOWA - 0.9%
5,000,000 Iowa Finance Authority, Single Family Mortgage,
6.450%, 1/01/24 1/05 at 102 Aaa 5,101,450
3,500,000 Marshalltown Pollution Control (Iowa Electric
Light and Power Company), 5.500%, 11/01/23 11/03 at 102 Aaa 3,272,395
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
LOUISIANA - 1.4%
$ 10,000,000 Louisiana Public Facilities Authority, Extended Care
(Comm-Care Corporation), 11.000%, 2/01/14 No Opt. Call BBB $ 13,197,800
- ---------------------------------------------------------------------------------------------------------------------------
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 5,429,100
3,500,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 3,934,175
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 N/R 8,941,809
13,915,000 Massachusetts Health and Educational Facilities
Authority (Capital Asset Program),
7.300%, 10/01/18 4/00 at 102 Aaa 15,153,018
2,480,000 Massachusetts Housing Finance Agency, Alternative
Minimum Tax, 8.100%, 8/01/23 8/99 at 102 BBB+ 2,586,739
10,300,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), 9.000%, 7/01/15 7/01 at 103 N/R 11,170,659
Massachusetts Water Resources Authority:
8,770,000 7.625%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 9,876,423
11,535,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 12,934,542
1,000,000 Boston General Obligation, 7.375%, 2/01/10
(Pre-refunded to 2/01/00) 2/00 at 102 A+ 1,112,330
- ---------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.0%
100,000 Michigan State Hospital Finance Authority (Sisters
of Mercy Health Corporation), 10.500%, 7/01/14 7/96 at 100 A 100,845
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 3,301,296
3,000,000 8.500%, 2/01/12 (Pre-refunded to 2/01/00) 2/00 at 102 BBB 3,449,850
2,000,000 8.625%, 2/01/20 (Pre-refunded to 2/01/00) 2/00 at 102 BBB 2,290,500
- ---------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.6%
8,710,000 Minnesota Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax,
7.950%, 7/01/22 7/00 at 102 Aa 9,149,942
Minneapolis/St. Paul Housing Finance Board, Single
Family Mortgage, Alternative Minimum Tax:
840,000 7.750%, 8/01/10 2/00 at 102 AAA 883,974
230,000 7.500%, 8/01/17 2/00 at 102 AAA 243,080
4,910,000 8.000%, 2/01/23 2/00 at 102 AAA 5,175,042
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MINNESOTA (CONTINUED)
Minneapolis Community Development Agency,
Limited Tax Supported Development, Alternative
Minimum Tax:
$ 2,130,000 8.500%, 12/01/08 12/98 at 102 BBB+ $ 2,324,086
3,455,000 8.750%, 12/01/17 12/98 at 102 BBB+ 3,796,389
2,555,000 8.250%, 6/01/19 12/99 at 102 BBB+ 2,721,433
- ---------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.6%
Coahoma-Clarksdale Housing Development
Corporation:
5,460,000 8.000%, 8/01/24 8/03 at 100 AAA 5,920,278
2,725,000 Greenwood-Leflore Housing Development
Corporation (Jones Apartments),
7.950%, 8/01/22 6/02 at 100 A 2,837,597
1,635,000 Greenwood-Leflore Housing Development
Corporation (Ivory Apartments),
7.950%, 2/01/22 2/01 at 100 A 1,707,316
1,725,000 Greenwood-Leflore Housing Development
Corporation (McNeace Apartments),
7.950%, 8/01/22 3/02 at 100 A 1,793,810
2,680,000 Greenwood-Leflore Housing Development
Corporation (Bishop Apartment),
7.950%, 8/01/22 8/01 at 100 A 2,808,988
- ---------------------------------------------------------------------------------------------------------------------------
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 2,724,100
- ---------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.9%
3,180,000 New Hampshire Business Finance Authority
(Pennichuck Water Works, Inc.),
6.350%, 12/01/19 12/04 at 102 Aaa 3,338,873
2,020,000 New Hampshire Business Finance Authority
(Pennichuck Water Works, Inc.), Alternative
Minimum Tax, 6.450%, 12/01/16 12/04 at 102 Aaa 2,121,889
4,765,000 New Hampshire Housing Finance Authority,
Alternative Minimum Tax, 7.950%, 7/01/22 7/00 at 102 Aa 5,013,447
6,690,000 New Hampshire Housing Finance Authority,
Single Family Mortgage, Alternative Minimum
Tax, 7.900%, 7/01/22 7/99 at 102 Aa 7,059,556
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW JERSEY - 0.3%
$ 3,000,000 New Jersey Housing and Mortgage Finance Agency,
5.350%, 10/01/15 10/03 at 102 Aaa $ 2,833,770
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK - 14.5%
New York State Housing Finance Agency (Health
Services) (New York City):
18,815,000 8.000%, 11/01/08 (Pre-refunded to 11/01/00) 11/00 at 102 BBB+ 21,537,719
3,885,000 8.000%, 11/01/08 11/00 at 102 BBB+ 4,339,351
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 9,281,490
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 21,432,800
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 5,591,950
4,605,000 Dormitory Authority of the State of New York
(United Health Services), 7.350%, 8/01/29 2/00 at 102 AAA 4,952,724
26,000,000 Dormitory of the State of New York (City University),
7.625%, 7/01/20 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 29,417,960
Dormitory Authority of the State of New York
(State University):
19,965,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 22,611,960
7,250,000 6.500%, 5/15/19 (Pre-refunded to 5/15/00) 5/00 at 100 AAA 7,765,040
8,000,000 New York City General Obligation, 9.500%, 6/01/03 No Opt. Call Baa1 9,756,560
- ---------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.3%
13,500,000 North Carolina Eastern Municipal Power Agency
Power System, 5.500%, 1/01/17 1/03 at 100 Aaa 12,591,855
- ---------------------------------------------------------------------------------------------------------------------------
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 2,349,052
- ---------------------------------------------------------------------------------------------------------------------------
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 17,610,424
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
OKLAHOMA - 1.7%
$ 1,640,000 Cleveland County Home Loan Authority, Single
Family Mortgage, 8.375%, 2/01/12 8/01 at 102 A1 $ 1,772,364
13,570,000 Tulsa Municipal Airport (AMRCorporation),
Alternative Minimum Tax, 7.600%, 12/01/30 6/01 at 102 Baa2 14,544,733
- ---------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.5%
3,500,000 Pennsylvania Housing Finance Agency, Rental
Housing (FNMA), 5.800%, 7/01/18 7/03 at 102 Aaa 3,418,660
7,300,000 Delaware River Port Authority, 5.400%, 1/01/16 1/06 at 102 Aaa 6,947,118
8,500,000 Philadelphia Water and Wastewater System,
5.000%, 6/15/16 6/03 at 100 Aaa 7,554,715
4,770,000 Venango Housing Corporation, Multi-Family
Mortgage, 8.000%, 2/01/24 12/03 at 100 AAA 5,107,001
- ---------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.3%
6,875,000 Rhode Island Housing and Mortgage Finance
Corporation, 7.750%, 4/01/22 4/00 at 102 AA+ 7,260,963
4,140,000 Rhode Island Housing and Mortgage Finance
Corporation, Alternative Minimum Tax,
8.050%, 4/01/22 10/00 at 102 AA+ 4,334,373
6,000,000 Rhode Island Convention Center Authority,
5.000%, 5/15/23 5/04 at 102 Aaa 5,191,260
Providence Housing Authority, Multi-Family
Mortgage (FHA Insured), Alternative Minimum Tax:
435,000 7.375%, 4/01/10 4/02 at 105 AAA 466,864
1,060,000 7.400%, 4/01/20 4/02 at 105 AAA 1,131,126
3,050,000 7.500%, 10/01/32 4/02 at 105 AAA 3,253,649
- ---------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.6%
5,000,000 South Carolina Public Service Authority,
5.000%, 1/01/25 1/03 at 102 Aaa 4,298,000
3,500,000 Charleston County Resource Recovery (Foster
Wheeler), Alternative Minimum Tax,
9.000%, 1/01/05 1/98 at 103 A 3,778,215
Piedmont Municipal Power Agency:
7,250,000 7.000%, 1/01/19 1/98 at 100 AAA 7,505,273
17,890,000 7.250%, 1/01/22 1/00 at 100 A 18,273,025
- ---------------------------------------------------------------------------------------------------------------------------
TEXAS - 5.9%
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 5,900,170
5,840,000 8.250%, 1/01/19 1/99 at 102 Baa2 6,311,755
8,000,000 8.125%, 2/01/20 2/00 at 102 Baa2 8,762,240
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 4,925,000 Cameron County Housing Finance Corporation,
Single Family Mortgage, 6.750%, 3/01/26 9/02 at 103 AAA $ 5,086,097
3,000,000 El Paso Housing Finance Corporation, Multi-Family
Housing (GNMA), 7.500%, 3/20/25 1/00 at 103 AAA 3,164,850
6,000,000 Harris County Health Facilities Development
Corporation (Texas Medical Center), 7.375%, 5/15/20 5/00 at 102 Aaa 6,561,780
Houston Water Conveyance System Contract,
Certificates of Participation:
5,490,000 6.800%, 12/15/10 No Opt. Call Aaa 6,239,001
2,000,000 6.800%, 12/15/11 No Opt. Call Aaa 2,268,920
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 8,041,050
Wood Glen Housing Finance Corporation:
1,775,000 7.625%, 1/01/10 1/00 at 103 Aaa 1,895,424
1,250,000 7.650%, 7/01/23 1/00 at 103 Aaa 1,326,174
- ---------------------------------------------------------------------------------------------------------------------------
UTAH - 2.3%
1,085,000 Utah Housing Finance Agency, Alternative Minimum
Tax, 8.250%, 7/01/21 7/99 at 102 AA 1,114,176
Intermountain Power Agency:
13,520,000 7.500%, 7/01/16 7/96 at 102 Aa 13,876,117
6,465,000 7.200%, 7/01/19 7/97 at 102 Aa 6,746,421
- ---------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.8%
8,130,000 Capital Region Airport Commission (Richmond
International Airport), 5.625%, 7/01/20 7/05 at 102 Aaa 7,727,971
- ---------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.5%
7,195,000 Washington General Obligation, 6.000%, 3/01/16 3/01 at 100 Aa 7,190,971
Washington Public Power Supply System, Nuclear
Project No. 1:
3,000,000 5.750%, 7/01/13 7/03 at 102 Aa 2,844,630
5,520,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 6,108,983
3,595,000 7.500%, 7/01/15 7/99 at 102 Aa 3,880,766
11,135,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 AAA 12,326,333
Washington Public Power Supply System, Nuclear
Project No. 2:
11,340,000 5.000%, 7/01/09 7/04 at 102 AAA 10,462,511
21,700,000 7.375%, 7/01/12 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 24,340,238
6,615,000 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 7,272,463
5,000,000 Snohomish County School District No. 2, General
Obligation, 6.200%, 12/01/12 12/03 at 102 Aaa 5,176,800
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WEST VIRGINIA - 0.4%
$ 3,575,000 West Virginia Housing Development Fund,
Alternative Minimum Tax, 7.950%, 5/01/17 11/00 at 102 Aa1 $ 3,752,070
- ---------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.3%
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 13,668,360
Wisconsin Health and Educational Facilities Authority
(Aurora Medical Group):
10,000,000 5.600%, 11/15/16 5/06 at 102 Aaa 9,480,100
15,000,000 5.750%, 11/15/25 5/06 at 102 Aaa 14,294,550
3,000,000 Milwaukee Housing Authority, Multi-Family Housing,
7.500%, 12/01/28 6/00 at 102 Aa 3,127,200
- ---------------------------------------------------------------------------------------------------------------------------
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 3,240,270
- ---------------------------------------------------------------------------------------------------------------------------
$868,370,000 Total Investments - (cost $864,037,440) - 97.7% 918,170,222
================
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.5%
$ 400,000 California Health Facilities Financing Authority
(St. Joseph Health System), Series 1991B,
Variable Rate Demand Bonds, 3.450%, 7/01/09+ VMIG-1 400,000
3,100,000 District of Columbia General Obligation, General
Fund Recovery Bonds, Variable Rate Demand Bonds,
4.300%, 6/01/03+ VMIG-1 3,100,000
1,100,000 District of Columbia (American Association for
Advancement of Science), Series 1995, Variable
Rate Demand Bonds, 4.150%, 10/01/22+ A-1 1,100,000
$ 4,600,000 Total Temporary Investments - 0.5% 4,600,000
================
Other Assets Less Liabilities - 1.8% 16,830,917
Net Assets - 100% $939,601,139
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 63 $492,467,572 54%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 22 140,329,616 15
PORTFOLIO OF A+ A1 4 36,946,761 4
INVESTMENTS A, A- A, A2, A3 13 63,296,032 7
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 20 161,777,503 18
TEMPORARY Non-rated Non-rated 3 23,352,738 2
INVESTMENTS):
TOTAL 125 $918,170,222 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
Con. Rating is conditional. Bonds for which the security depends upon the
completion of some act or the fulfillment of some condition are rated
conditionally. These are bonds secured by (a) earnings by projects under
construction, (b) earnings of projects unseasoned in operation experience, (c)
rentals which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches. Parenthetical rating denotes probable
credit stature upon completion of construction or elimination of basis of
condition. + The security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a short-term security.
The rate disclosed is that currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MUNICIPAL 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 $ 4,090,564
- ---------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.3%
2,455,000 Arkansas Development Finance Authority, Single
Family Housing, 8.000%, 8/15/11 8/01 at 103 Aa 2,643,839
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 11.2%
15,200,000 California General Obligation, 6.500%, 10/01/05 No Opt.Call A1 16,817,128
6,500,000 California Health Facilities Financing Authority
(Episcopal Homes Foundation), 7.850%, 7/01/15 7/96 at 101 1/2 A 6,630,455
4,000,000 California Health Facilities Financing Authority
(Valleycare Hospital), 7.000%, 5/01/20 5/00 at 102 A 4,223,360
7,300,000 California Health Facilities Financing Authority
(Children's Hospital - San Diego), 6.500%, 7/01/20 7/00 at 102 Aaa 7,983,280
6,810,000 California Health Facilities Financing Authority
(Kaiser Permanente), 5.600%, 5/01/33 5/03 at 102 Aa3 6,178,917
8,745,000 Bell Community Redevelopment Agency, Tax
Allocation, 6.350%, 11/01/23 11/03 at 102 Aaa 9,044,166
5,000,000 Los Angeles Community Redevelopment Agency,
Tax Allocation (Central Business District),
6.750%, 7/01/10 7/96 at 102 A- 5,076,250
Los Angeles Department of Water and Power:
10,000,000 6.400%, 5/15/28 5/01 at 102 Aa 10,366,400
6,815,000 5.400%, 11/15/31 11/03 at 102 Aa 6,129,684
12,080,000 5.375%, 2/15/34 2/04 at 102 Aa 10,799,399
6,000,000 Los Angeles Department of Water and Power,
Electric Plant, 4.750%, 10/15/20 10/03 at 102 Aa 4,967,460
5,000,000 Los Angeles County Sanitation Districts Financing
Authority, 5.000%, 10/01/23 10/03 at 100 Aa 4,274,650
5,870,000 Sacramento Municipal Utility District,
4.750%, 9/01/21 9/03 at 100 Aaa 4,844,041
13,900,000 San Diego Gas and Electric Company,
5.900%, 9/01/18 9/03 at 102 Aaa 13,720,412
- ---------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.0%
4,280,000 Colorado Housing Finance Authority, Single Family
Housing, Alternative Minimum Tax,
7.650%, 8/01/22 8/00 at 102 AA 4,457,962
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
COLORADO (CONTINUED)
City and County of Denver Airport System,
Alternative Minimum Tax:
$ 1,200,000 5.950%, 11/15/98 No Opt. Call Baa $ 1,241,028
4,700,000 7.400%, 11/15/01 No Opt. Call Baa 5,173,196
3,000,000 8.000%, 11/15/17 11/97 at 102 Baa 3,190,440
5,000,000 7.750%, 11/15/21 11/01 at 102 Baa 5,485,450
7,625,000 6.750%, 11/15/22 11/02 at 102 Baa 7,730,683
3,500,000 7.250%, 11/15/23 11/02 at 102 Baa 3,685,080
12,250,000 8.000%, 11/15/25 11/01 at 100 Baa 13,642,948
5,000,000 7.000%, 11/15/25 11/01 at 100 Baa 5,083,250
- ---------------------------------------------------------------------------------------------------------------------------
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 2,211,429
- ---------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.4%
Orange County Housing Finance Authority:
5,465,000 7.500%, 7/01/10 7/00 at 103 Aaa 5,786,342
11,035,000 7.600%, 1/01/24 7/00 at 103 Aaa 11,681,541
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 7,161,101
4,415,000 8.875%, 12/01/18 (Pre-refunded to 12/01/98) 12/98 at 102 N/R 4,959,414
3,795,000 Palm Beach County Housing Finance Agency,
7.600%, 3/01/23 9/00 at 103 Aaa 3,991,239
- ---------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.2%
17,000,000 Georgia Municipal Electric Authority,
7.900%, 1/01/08 1/98 at 102 A 18,100,580
4,000,000 Athens Housing Authority, 8.125%, 12/01/05
(Mandatory put 12/01/97) No Opt. Call Baa1 4,107,000
- ---------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 7.0%
15,000,000 Illinois Development Finance Authority (Columbus-
Cuneo-Cabrini Medical Center), 8.500%, 2/01/15
(Pre-refunded to 2/01/00) 2/00 at 102 Baa 17,193,300
5,210,000 Illinois Housing Development Authority (Garden
House), 6.875%, 1/01/20 1/03 at 102 A 5,361,611
2,135,000 Illinois Housing Development Authority, Elderly
Housing (Village Center Development),
6.600%, 3/01/07 3/03 at 102 A 2,233,552
6,500,000 Chicago Gas Supply (People's Gas Light and Coke
Company), 6.100%, 6/01/25 6/05 at 102 Aa3 6,563,700
21,700,000 Chicago O'Hare International Airport, Alternative
Minimum Tax, 7.500%, 1/01/17 1/00 at 102 A 23,256,758
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 6,300,000 Chicago O'Hare International Airport (American
Airlines Inc. Project), Alternative Minimum Tax,
7.875%, 11/01/25 11/00 at 102 Baa2 $ 6,784,974
4,000,000 Community College District No. 508 (Cook County)
8.750%, 1/01/06 No Opt. Call Aaa 5,019,280
3,005,000 Peoria, Pekin and Waukegan (GNMA), Alternative
Minimum Tax, 7.875%, 8/01/22 8/00 at 103 AAA 3,149,450
- ---------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.8%
13,500,000 Indiana Health Facilities Financing Authority
(Bartholomew County Hospital), 7.750%, 8/15/20 8/00 at 103 AAA 15,385,410
3,710,000 Indiana Housing Finance Authority, Alternative
Minimum Tax, 7.800%, 1/01/22 7/00 at 102 Aaa 3,743,242
10,000,000 Indiana State Office Building Commission,
7.250%, 7/01/12 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 11,169,700
Indianapolis Local Public Improvement Bond Bank:
3,750,000 6.750%, 2/01/20 2/03 at 102 A+ 3,982,125
8,000,000 6.500%, 2/01/22 2/98 at 100 A+ 8,079,840
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 5,682,050
- ---------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.3%
2,490,000 Kentucky Housing Corporation, Alternative
Minimum Tax, 8.100%, 1/01/22 7/00 at 102 AAA 2,612,906
- ---------------------------------------------------------------------------------------------------------------------------
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 5,699,381
- ---------------------------------------------------------------------------------------------------------------------------
MAINE - 0.3%
2,500,000 Maine State Housing Authority, Single Family
Housing, 7.150%, 11/01/21 11/01 at 102 Aa 2,576,325
- ---------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.5%
4,770,000 Maryland Community Development Administration,
Alternative Minimum Tax, 7.700%, 4/01/15 4/00 at 102 Aa 4,948,016
- ---------------------------------------------------------------------------------------------------------------------------
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 8,143,650
10,800,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 12,139,740
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 4,730,712
10,800,000 7.750%, 7/01/14 7/00 at 102 Aa 12,274,956
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$ 8,215,000 Massachusetts Health and Educational Facilities
Authority (Goddard Memorial Hospital),
9.000%, 7/01/15 7/00 at 102 Baa $ 9,082,340
3,385,000 Massachusetts Housing Finance Agency, Residential
Housing, Alternative Minimum Tax,
8.200%, 8/01/27 8/99 at 102 BBB+ 3,576,151
Massachusetts Water Resources Authority:
9,225,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 10,388,826
6,615,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) 4/00 at 102 Aaa 7,417,598
5,195,000 7.000%, 4/01/18 4/00 at 102 A 5,736,994
- ---------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.3%
8,500,000 Michigan Hospital Finance Authority (Bay Medical
Center), 8.250%, 7/01/12 7/00 at 102 Baa1 9,097,125
4,500,000 Michigan State Hospital Finance Authority (Detroit
Medical Center), 7.500%, 8/15/11 8/01 at 102 A 4,849,335
8,500,000 Michigan Strategic Fund (Waste Management, Inc.),
Alternative Minimum Tax, 6.625%, 12/01/12 12/02 at 102 A1 9,023,345
- ---------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.5%
3,750,000 Minnesota Housing Finance Agency, Single Family
Housing, Alternative Minimum Tax,
7.950%, 7/01/22 7/00 at 102 Aa 3,939,413
2,690,000 Minnesota Housing Finance Agency, Alternative
Minimum Tax, 7.700%, 7/01/14 7/00 at 102 Aa 2,841,044
2,965,000 Dakota, Washington and Stearns Counties, Single
Family Housing, Alternative Minimum Tax,
7.850%, 12/01/30 12/00 at 102 AAA 3,107,142
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 10,165,559
4,000,000 St. Paul Housing and Redevelopment Authority
(Civic Center Project), 7.100%, 11/01/23 11/15 at 103 Aaa 4,511,040
- ---------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.1%
1,375,000 Mississippi Home Corporation, 9.250%, 3/01/12 9/00 at 103 Aaa 1,493,209
- ---------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.5%
Nevada Housing Division, Alternative Minimum Tax:
2,725,000 7.850%, 10/01/10 4/00 at 102 AA 2,852,339
2,040,000 7.900%, 4/01/22 4/00 at 102 AA 2,139,613
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW JERSEY - 0.7%
$ 4,750,000 Camden County Pollution Control Financing
Authority (Solid Waste Disposal and Resource
Recovery), Alternative Minimum Tax,
7.125%, 12/01/01 No Opt. Call BBB+ $ 4,814,410
2,000,000 Camden County Pollution Control Finance Authority
(Solid Waste Disposal and Resource Recovery),
7.250%, 12/01/10 12/01 at 102 BBB+ 2,054,620
- ---------------------------------------------------------------------------------------------------------------------------
NEWMEXICO - 1.1%
10,825,000 New Mexico Mortgage Finance Authority,
7.800%, 9/01/17 9/00 at 102 AA 11,367,549
- ---------------------------------------------------------------------------------------------------------------------------
NEWYORK - 20.9%
4,620,000 New York Medical Care Facilities Finance Agency
(Columbia Presbyterian Hospital), 7.250%, 2/15/12 8/97 at 102 Aa 4,837,925
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 4,209,615
3,420,000 New York State Housing Finance Agency, Health
Facilities (New York City), 8.000%, 11/01/08 11/00 at 102 BBB+ 3,819,969
16,580,000 New York State Housing Finance Agency (Health
Services), 8.000%, 11/01/08 (Pre-refunded to
11/01/00) 11/00 at 102 BBB+ 18,979,292
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 10,903,716
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 10,631,151
7,200,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home,
FHA-Insured (Buffalo General Hospital),
7.700%, 2/15/22 (Pre-refunded to 8/15/98) 8/98 at 102 AAA 7,878,888
5,000,000 New York State Medical Care Facilities,
6.375%, 11/15/19 11/05 at 102 Aa 5,093,900
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 17,703,493
5,000,000 New York State Medical Care Facilities Finance
Agency (Brookdale Hospital Medical Center),
6.850%, 2/15/17 2/05 at 102 Baa 5,160,950
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 7,150,000 New York State Thruway Authority, 6.000%, 1/01/25 1/05 at 102 Aaa $ 7,144,423
Dormitory Authority of the State of New York
(City University System):
6,080,000 9.250%, 7/01/99 No Opt. Call Baa1 6,851,734
15,000,000 8.750%, 7/01/03 No Opt. Call Baa1 17,831,850
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 10,040,023
10,000,000 7.125%, 5/15/17 (Pre-refunded to 5/15/99) 5/99 at 102 AAA 10,957,575
10,000,000 New York City Municipal Assistance Corporation,
6.875%, 7/01/07 7/97 at 102 Aa 10,479,500
New York City General Obligation:
8,850,000 6.500%, 8/01/07 8/02 at 101 1/2 Baa1 9,004,167
5,000,000 7.250%, 8/15/07 No Opt. Call Baa1 5,557,500
6,750,000 6.625%, 2/15/25 2/05 at 101 Baa1 6,780,105
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 5,049,930
12,875,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) 6/00 at 101 1/2 Aaa 14,471,629
7,585,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) 6/00 at 100 A 7,992,466
5,915,000 6.000%, 6/15/20 6/00 at 100 A 5,829,292
- ---------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.3%
10,500,000 North Carolina Eastern Municipal Power Agency,
6.250%, 1/01/03 1/02 at 102 A 10,618,545
5,365,000 North Carolina Housing Finance Agency,
Alternative Minimum Tax, 7.850%, 9/01/28 3/00 at 102 Aa 5,613,560
5,000,000 North Carolina Municipal Power Agency,
5.250%, 1/01/09 No Opt. Call A 4,833,500
2,000,000 Wake County Industrial Facilities and Pollution
Control Finance Authority (Carolina Power and
Light Company), 6.900%, 4/01/09 4/00 at 102 A2 2,141,300
- ---------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.7%
3,310,000 Bryan County Economic Development Authority,
Single Family Housing, 8.600%, 7/01/10 7/00 at 102 Baa1 3,499,100
8,000,000 Tulsa Municipal Airport Trust (AMR Corporation),
7.375%, 12/01/20 12/00 at 102 Baa2 8,468,560
5,000,000 Tulsa Municipal Airport (AMR Corporation),
Alternative Minimum Tax, 7.600%, 12/01/30 6/01 at 102 Baa2 5,359,150
- ---------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.6%
3,735,000 Allegheny County Residential Finance Authority,
Alternative Minimum Tax, 7.950%, 6/01/23 6/00 at 102 Aaa 3,927,950
9,000,000 Philadelphia Water and Wastewater, 10.000%, 6/15/05 No Opt. Call Aaa 12,141,450
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
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 $ 5,765,950
11,940,000 Rhode Island Housing and Mortgage Finance
Corporation, 7.750%, 4/01/22 4/00 at 102 AA+ 12,610,312
- ---------------------------------------------------------------------------------------------------------------------------
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 4,225,967
- ---------------------------------------------------------------------------------------------------------------------------
TENNESSEE -0.4%
3,690,000 Tennessee Housing Development Agency, Alternative
Minimum Tax, 7.950%, 7/01/22 7/00 at 103 Aa 3,873,836
- ---------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.7%
4,891,379 Texas General Services Commission, 7.500%, 9/01/22 9/97 at 102 A 4,767,481
2,455,000 Texas Housing Agency, 8.125%, 9/01/06 3/97 at 101 Aa 2,512,300
6,000,000 Alliance Airport Authority (AMR Corporation),
Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 6,380,880
Arlington Independent School District, General
Obligation:
12,650,000 0.000%, 2/15/12 2/05 at 67 5/16 Aaa 4,819,144
12,640,000 0.000%, 2/15/13 2/05 at 62 29/32 Aaa 4,482,523
20,500,000 Dallas-Fort Worth International Airport (AMR
Corporation), Alternative Minimum Tax,
7.500%, 11/01/25 11/00 at 102 Baa2 21,788,835
4,295,000 El Paso Housing Finance Corporation, Single Family
Housing, 8.750%, 10/01/11 4/01 at 103 A 4,661,535
5,750,000 Houston Senior Lien, Occupancy Tax, 6.000%, 7/01/05 No Opt. Call Aaa 6,103,165
4,000,000 Houston Sewer System, 8.125%, 12/01/17
(Pre-refunded to 12/01/97) 12/97 at 102 Aaa 4,332,600
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 17,032,446
- ---------------------------------------------------------------------------------------------------------------------------
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 4,004,481
- ---------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.3%
4,000,000 Virginia Housing Development Authority, Alternative
Minimum Tax, 6.550%, 1/01/27 1/02 at 102 Aa1 4,028,240
2,000,000 Virginia Housing Development Authority,
7.050%, 5/01/18 5/02 at 102 AA+ 2,104,700
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
VIRGINIA (CONTINUED)
$ 10,800,000 Accomack County School Board, Certificates of
Participation, 5.000%, 1/15/99 1/97 at 100 N/R $ 10,791,036
5,025,000 Henrico County Industrial Development Authority
(Bon Secours Health System), 7.500%, 9/01/07 8/00 at 102 A1 5,465,693
- ---------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.2%
Washington Public Power Supply System, Nuclear
Project No. 1:
1,080,000 14.375%, 7/01/01 No Opt. Call Aaa 1,449,144
5,430,000 7.600%, 7/01/05 7/00 at 102 Aa 5,953,832
3,030,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 3,353,301
3,225,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 3,570,043
3,030,000 5.375%, 7/01/15 7/03 at 102 Aa 2,728,091
9,775,000 6.875%, 7/01/17 7/01 at 102 Aa 10,339,213
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 7,733,529
13,240,000 7.375%, 7/01/12 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 14,850,911
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 4,040,514
8,000,000 5.375%, 7/01/15 7/03 at 102 Aa 7,186,400
- ---------------------------------------------------------------------------------------------------------------------------
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 5,556,682
$922,761,379 Total Investments - (cost $897,137,713) - 97.2% 964,992,010
================
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 500,000 Peninsula Ports Authority of Virginia (Dominion
Terminals Associates), Variable Rate Demand
Bonds, 3.950%, 7/01/16+ P-1 500,000
2,700,000 Power County Pollution Control (FMC Corporation),
Variable Rate Demand Bonds, 4.100%, 12/01/10+ VMIG-1 2,700,000
$ 3,200,000 Total Temporary Investments - 0.3% 3,200,000
================
Other Assets Less Liabilities - 2.5% 24,562,545
Net Assets - 100% $992,754,555
============
<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 $364,736,889 38%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 31 180,773,639 19
PORTFOLIO OF A+ A1 5 43,368,131 4
INVESTMENTS A, A- A, A2, A3 17 121,869,696 13
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 31 232,811,155 24
TEMPORARY Non-rated Non-rated 3 21,432,500 2
INVESTMENTS):
TOTAL 136 $964,992,010 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $1,244,302,597 $ 918,170,222 $ 964,992,010
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 6,600,000 4,600,000 3,200,000
Cash 99,348 56,425 1,195,901
Receivables:
Interest 27,161,869 20,268,838 20,596,366
Investments sold 1,795,000 945,903 7,450,809
Other assets 100,295 50,577 272,315
-------------- -------------- --------------
Total assets 1,280,059,109 944,091,965 997,707,401
-------------- -------------- --------------
LIABILITIES
Accrued expenses:
Management fees (note 6) 646,161 481,134 507,712
Other 145,575 227,367 157,978
Preferred share dividends payable 443,500 123,044 415,237
Common share dividends payable 5,092,495 3,659,281 3,871,919
-------------- -------------- --------------
Total liabilities 6,327,731 4,490,826 4,952,846
-------------- -------------- --------------
Net assets (note 7) $1,273,731,378 $ 939,601,139 $ 992,754,555
============== ============== ==============
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 58,872,773 42,060,701 44,762,071
============== ============== ==============
Net asset value per Common share outstanding
(net assets less Preferred shares at
liquidation
value, divided by Common shares outstanding) $ 14.84 $ 15.21 $ 15.48
============== ============== ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1996
(Unaudited)
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 42,602,640 $ 30,971,392 $ 32,816,282
------------ ------------ ------------
Expenses:
Management fees (note 6) 3,970,960 2,967,525 3,125,122
Preferred shares--auction fees 534,243 390,452 350,000
Preferred shares--dividend disbursing agent fees 21,724 25,056 17,500
Shareholders' servicing agent fees and expenses 129,369 75,040 85,799
Custodian's fees and expenses 79,804 62,824 62,177
Directors' fees and expenses (note 6) 6,667 3,447 3,081
Professional fees 65,799 2,475 6,573
Shareholders' reports--printing and mailing expenses 78,674 88,641 80,497
Stock exchange listing fees 26,126 27,770 19,800
Investor relations expense 47,543 32,296 35,049
Other expenses 30,350 20,703 21,365
------------ ------------ ------------
Total expenses 4,991,259 3,696,229 3,806,963
------------ ------------ ------------
Net investment income 37,611,381 27,275,163 29,009,319
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (384,084) 680,456 (147,602)
Net change in unrealized appreciation or depreciation
of investments (20,070,522) (15,360,693) (12,263,281)
------------ ------------ ------------
Net gain (loss) from investments (20,454,606) (14,680,237) (12,410,883)
------------ ------------ ------------
Net increase in net assets from operations $ 17,156,775 $ 12,594,926 $ 16,598,436
============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NPP NMA
6 months ended Year ended 6 months ended Year ended
4/30/96 10/31/95 4/30/96 10/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 37,611,381 $ 77,153,445 $ 27,275,163 $ 55,876,222
Net realized gain (loss) from investment
transactions, net of taxes, if applicable (384,084) (1,471,114) 680,456 208,379
Net change in unrealized appreciation or
depreciation of investments (20,070,522) 50,905,804 (15,360,693) 42,497,416
--------------- --------------- --------------- ---------------
Net increase in net assets from operations 17,156,775 126,588,135 12,594,926 98,582,017
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (31,094,818) (63,115,341) (22,323,640) (45,761,387)
Preferred shareholders (7,606,446) (16,186,207) (5,566,624) (11,898,209)
--------------- --------------- --------------- ---------------
Decrease in net assets from distributions
to shareholders (38,701,264) (79,301,548) (27,890,264) (57,659,596)
--------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions 5,472,028 1,880,388 619,473 --
--------------- --------------- --------------- ---------------
Net increase in net assets derived from
capital share transactions 5,472,028 1,880,388 619,473 --
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets (16,072,461) 49,166,975 (14,675,865) 40,922,421
Net assets at beginning of period 1,289,803,839 1,240,636,864 954,277,004 913,354,583
--------------- --------------- --------------- ---------------
Net assets at end of period $ 1,273,731,378 $ 1,289,803,839 $ 939,601,139 $ 954,277,004
=============== =============== =============== ===============
Balance of undistributed net investment
income at end of period $ 1,127,805 $ 2,217,688 $ 960,993 $ 1,576,094
=============== =============== =============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NMO
6 months ended Year ended
4/30/96 10/31/95
<S> <C> <C>
OPERATIONS
Net investment income $ 29,009,319 $ 59,429,004
Net realized gain (loss) from investment
transactions, net of taxes, if applicable (147,602) 732,368
Net change in unrealized appreciation or
depreciation of investments (12,263,281) 49,233,857
--------------- ---------------
Net increase in net assets from operations 16,598,436 109,395,229
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (23,701,522) (48,745,905)
Preferred shareholders (5,940,685) (12,294,377)
--------------- ---------------
Decrease in net assets from distributions
to shareholders (29,642,207) (61,040,282)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment
of distributions -- --
--------------- ---------------
Net increase in net assets derived
from capital share transactions -- --
--------------- ---------------
Net increase (decrease) in net assets (13,043,771) 48,354,947
Net assets at beginning of period 1,005,798,326 957,443,379
--------------- ---------------
Net assets at end of period $ 992,754,555 $ 1,005,798,326
=============== ===============
Balance of undistributed net investment
income at end of period $ 1,034,730 $ 1,667,618
=============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At April 30, 1996, the National Funds (the "Funds") covered in this report and
their corresponding New York Stock Exchange symbols are Nuveen Performance
Plus Municipal Fund, Inc. (NPP), Nuveen Municipal Advantage Fund, Inc.
(NMA) and Nuveen Municipal Market Opportunity Fund, Inc. (NMO).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at amortized cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized
gains and losses from such transactions are determined on the specific
identification method. Securities purchased or sold on a when-issued or
delayed delivery basis may be settled a month or more after the transaction
date. The securities so purchased are subject to market fluctuation during
this period. The Funds have instructed the custodian to segregate assets in a
separate account with a current value at least equal to the amount of their
purchase commitments. At April 30, 1996, there were no such purchase
commitments in any of the Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
<PAGE>
<TABLE>
Federal Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing to shareholders
all of the Funds' tax-exempt net investment income, in addition to any
significant amounts of net realized capital gains from investments and/or
market discount realized upon the sale of securities. The Funds currently
consider significant net realized capital gains and/or market discount as
amounts in excess of $.01 per Common share. Furthermore, each Fund intends to
satisfy conditions which will enable interest from municipal securities, which
is exempt from regular federal income tax, to retain such tax-exempt status
when distributed to shareholders of the Funds.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
capital gains from investment 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 gains from
investment transactions, if applicable.
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 were as
follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Number of shares:
Series M 4,000 3,000 4,000
Series T 4,000* 3,000 4,000**
Series W 4,000 3,000 --
Series F 4,000 3,000 4,000
------ ------ ------
Total 16,000 12,000 12,000
====== ====== ======
<FN>
*Three year period **Five year period
</TABLE>
<PAGE>
<TABLE>
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 future, forward, swap, and option contracts,
and other financial instruments with similar characteristics. Although the
Funds are authorized to invest in such financial instruments, and may do so in
the future, they did not make any such investments during the six months ended
April 30, 1996.
2. FUND SHARES
Transactions in Common shares were as follows:
<CAPTION>
NPP NMA
6 months ended Year ended 6 months ended Year ended
4/30/96 10/31/95 4/30/96 10/31/95
<S> <C> <C> <C> <C>
Shares issued to shareholders due to reinvestment
of distributions 355,746 124,648 39,232 --
======= ======= ====== ====
<CAPTION>
NMO
6 months ended Year ended
4/30/96 10/31/95
<S> <C> <C>
Shares issued to shareholders due to reinvestment
of distributions -- --
===== =====
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
April 30, 1996, were as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $118,650,576 $92,542,560 $53,084,877
Temporary municipal investments 92,700,000 90,450,000 47,905,000
SALES AND MATURITIES
Investments in municipal securities 108,010,614 74,709,623 62,278,557
Temporary municipal investments 94,700,000 92,050,000 46,005,000
============ =========== ===========
</TABLE>
<PAGE>
<TABLE>
At April 30, 1996, 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' last fiscal year end, the Funds had unused
capital loss carryovers available for federal income tax purposes to be
applied against future capital 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
========== ========== ==========
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On May 1, 1996, the Funds declared Common share dividend distributions from
their ordinary income that were paid June 3, 1996, to shareholders of record
on May 15, 1996, as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Dividend per share $.0865 $.0870 $.0865
====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 1996, were as follows:
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Gross unrealized:
Appreciation $ 65,941,889 $ 59,068,139 $ 70,865,557
Depreciation (6,096,409) (4,935,357) (3,011,260)
------------ ------------ ------------
Net unrealized appreciation $ 59,845,480 $ 54,132,782 $ 67,854,297
============ ============ ============
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each
Fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<CAPTION>
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those directors who are affiliated with the Adviser
or to their officers, all of whom receive remuneration for their services to
the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS
At April 30, 1996, 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 588,728 420,607 447,621
Paid-in surplus 821,486,695 586,384,519 623,760,818
Balance of undistributed net investment income 1,127,805 960,993 1,034,730
Accumulated net realized gain (loss) from
investment transactions (9,317,330) (2,297,762) (342,911)
Net unrealized appreciation or depreciation
of investments 59,845,480 54,132,782 67,854,297
--------------- --------------- ---------------
Net assets $ 1,273,731,378 $ 939,601,139 $ 992,754,555
=============== =============== ===============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
=============== =============== ===============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At April 30, 1996, 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 24% 14% 16%
Electric Utilities 12 12 9
Pollution Control Facilities 10 8 9
Health Care Facilities 3 9 9
Transportation 3 3 8
Educational Facilities 2 4 3
Water / Sewer Facilities 1 3 4
Lease Rental Facilities 2 1 3
Other 7 6 6
General Obligation Bonds 4 4 5
Escrowed Bonds 32 36 28
--- --- ---
100% 100% 100%
=== === ===
Certain long-term and intermediate-term investments owned by the Funds are
either covered by insurance issued by several private insurers or are backed
by an escrow or trust containing U.S. Government or U.S. Government agency
securities, both of which ensure the timely payment of principal and interest
in the event of default (49% for NPP, 58% for NMA and 40% 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.
Certain 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 (56% for NPP, 100% NMA
and 100% for NMO).
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<CAPTION>
Operating performance Dividends from net investment income
Net
realized &
Net asset unrealized
value Net gain (loss) To To
beginning investment from invest- Common Preferred
of period income ments++ shareholders shareholders+
NPP
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 $15.210 $ .641 $ (.351) $ (.530) $(.130)
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>
6 mos. ended
4/30/96 15.570 .648 (.345) (.531) (.132)
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)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders+ discounts of period period
NPP
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 $ -- $ -- $ -- $14.840 $14.875
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>
6 mos. ended
4/30/96 -- -- -- 15.210 15.000
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
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total Ratio of
investment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets*** net assets*** rate
NPP
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 .96% 1.01% $1,273,731 .78%* 5.86%* 9%
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>
6 mos. ended
4/30/96 2.63 1.05 939,601 .78* 5.74* 8
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
<FN>
See notes on page 54.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<CAPTION>
Operating performance Dividends from net investment income
Net
realized &
Net asset unrealized
value Net gain (loss) To To
beginning investment from invest- Common Preferred
of period income ments++ shareholders shareholders+
NMO
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 $15.770 $ .649 $ (.276) $ (.530) $(.133)
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)
3/21/90 to
10/31/90 14.050 .718 .034 (.450) (.184)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders+ discounts of period period
NMO
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 $ -- $ -- $ -- $15.480 $15.125
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
3/21/90 to
10/31/90 -- -- (.188) 13.980 13.750
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total Ratio of
investment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets*** net assets*** rate
NMO
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 4.32% 1.49% $ 992,755 .76%* 5.79%* 5%
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
3/21/90 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. + The amounts shown are based
on Common share equivalents. ++ Net of taxes, if applicable.
</TABLE>
<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-JUN 96
