Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams
PERFORMANCE PLUS (NPP)
MUNICIPAL ADVANTAGE (NMA)
MARKET OPPORTUNITY (NMO)
ANNUAL REPORT/OCTOBER 31, 1996
Photographic image of couple walking on beach.
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Photographic image of financial adviser reviewing financial statements/plans
with older couple.
Tax-informed investing
An important part of any successful investment program is gauging how well
your investments have performed and measuring your progress toward your
long-term goals.
<PAGE>
Taxes dramatically alter the relative returns of the five asset classes shown
at right.
<TABLE>
<CAPTION>
Graph showing after-tax returns, 1976-1996.
<S> <C>
Municipals 8.26
Treasuries 5.62
Corporates 6.11
Stocks 10.51
Treasury Bills 3.87
</TABLE>
Traditionally, the most common way to measure
performance has been to compare pre-tax rates of return for different
investments across similar time periods. The rationale behind this method is
that each investor is taxed at a different rate, making pre-tax comparisons
the seemingly logical way to ensure you are comparing apples to apples.
This, however, is precisely the rationale that can make a pre-tax
performance assessment misleading. When returns are presented on a pre-tax
basis, you may lose sight of the major impact taxes can have on your earnings,
and fail to get the complete picture of your progress toward your investment
goals. At Nuveen, we've built our reputation help ing investors realize that
it's not what you earn, it's what you keep.
TAX-INFORMED INVESTING: THE KEY
TO MEASURING LONG-TERM RESULTS
The true measure of an investment is its performance on an after-tax basis.
Analyzing after-tax returns gains added significance when you realize that the
taxes you pay can never be regained. Once that money is "lost," it can't be
put to work through compounding, earning additional dollars for you.
To better illustrate the ways that taxes can affect the amount you keep
versus the amount you earn, Nuveen Research recently studied 20 years of
investment returns, both pre-tax and after-tax, to determine the impact of
taxes on various asset classes. We were particularly interested in the results
for municipal bonds, an asset class that is commonly excluded from the top
performance rankings when only pre-tax returns are considered.
MEASURING WHAT YOU KEEP
The study showed that, once the impact of taxes was figured into the equation,
municipal bonds offered a distinct advantage over other fixed income
investments. Over the study period, municipal bonds outperformed both
corporate and Treasury bonds (see accompanying tables), as high tax rates and
the loss of compounding income took their toll on corporate and Treasury
results.
As investors are well aware, performance over the long term--and the
purchasing power of their earnings--can be eroded by inflation as well as
taxes. The study showed that, over the past 20 years, only municipal bonds and
stocks provided significant after-tax gains over the Consumer Price Index, the
most recognized measure of inflation.
ABOUT THE STUDY
The study, "Measuring What You Keep: Historical After-Tax Returns," compared
pre-tax and after-tax total returns over the past 20 years for five asset
classes: municipal bonds, Treasury bonds, Treasury bills, corporate bonds, and
<PAGE>
large company stocks. Returns for each asset class were represented by the
returns on commonly used market indexes compiled by Lehman Brothers and
Ibbotson Associates.
A hypothetical investment of $100,000 was made in each of these asset classes
at the beginning of 1976, with all dividends and interest reinvested through
the end of 1995. In addition, the after-tax proceeds of an assumed annual 20%
turnover rate were reinvested. The study assumed that taxes were paid annually
at the applicable federal income tax rates for an investor earning the
equivalent of $100,000 in 1995. Of course, this hypothetical investment
performance neither reflects past performance nor predicts future results of
any Nuveen investment.
INCORPORATING TAX-INFORMED
INVESTING IN YOUR PORTFOLIO
The Nuveen study confirms what many investors have known for years: that
municipal bonds can play a critical role in the long-term financial strategies
of tax-informed investors.
Balancing short-term and long-term investments
Combining shorter- and longer-term tax-free investments may help you manage
cumulative risk in your portfolio while still capturing the potential for
attractive overall rates. Shorter-term investments can help reduce the current
volatility of your portfolio and provide a source of investable funds to take
advantage of additional investment opportunities as they arise. Longer-term
leveraged exchange-traded funds have provided attractive yields and offer
trading flexibility that allows quick and easy portfolio adjustments.
Dividend reinvestment
Studies indicate that weathering market cycles by maintaining an investment
plan with long-term goals can help shield investors in the event of a
declining market. The purchase of additional shares on a regular schedule,
such as through dividend reinvestment, is another strategy for navigating
market changes. Dividend reinvestment is an easy and convenient way to set
aside dollars on a regular basis, helping you take advantage of dollar-cost
averaging while gaining the benefits of tax-free compounding.
CONSISTENT AFTER-TAX PERFORMANCE
For the long-term investor, performance--even after the impact of taxes and
inflation--is the true meas ure of an investment's merit. While most investors
choose municipal bonds for their tax-free income advantage, the positive news
about their after-tax returns reinforces their potential value as part of a
tax-informed investment strategy designed to meet long-term objectives.
Understanding the impact of taxes can mean that you keep more of what you
earn, and municipal bonds can help you do just that.
Only municipals and equities generated signif icant increases in purchasing
power over the twenty-year period, with after-tax and inflation-adjusted
returns in excess of 2.75% annually.
<TABLE>
<CAPTION>
ANNUAL AFTER-TAX REAL RETURNS, 1976-1995
PERIOD MUNICIPALS TREASURIES CORPORATES STOCKS BILLS
<S> <C> <C> <C> <C> <C>
1976-1985 .69% -3.32% -2.14% 2.75% -2.67%
1986-1995 5.15 4.21 3.91 7.31 0.13
1976-1995 2.88% 0.37% 0.84% 5.02% -1.30%
</TABLE>
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Photographic image of couple walking on beach.
CONTENTS
6 Municipal market perspective
7 Dear shareholder
9 Answering your questions
13 Fund performance
15 Commonly used terms
17 Shareholder meeting report
18 Portfolio of investments
41 Statement of net assets
42 Statement of operations
43 Statement of changes in net assets
45 Notes to financial statements
52 Financial highlights
56 Report of independent auditors
57 Nuveen Exchange-Traded Funds
dividend reinvestment program
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Municipal
market perspective
Over the past year the bond market has been relatively stable compared with
recent years, despite some fluctuations. While 1994 represented the worst
period in recent bond market history and 1995 the best in a decade, 1996 ended
the year about where it began, rebounding from a mid-year decline. Following a
strong start, a succession of mixed reports affecting interest rate and
inflation forecasts caused investors to view the markets alternatively with
enthusiasm, then uncertainty. In the third quarter, evidence of an economic
slowdown, the strong U.S. dollar, and lack of inflationary pressures combined
to allay investor fears, sparking a rally in bonds that continued through the
post-election period. Throughout the year, the municipal market continued to
reward investors with solid returns, dependable income, and opportunities to
purchase bonds with strong credit quality.
A look at the current economy shows a positive tone, reflecting a combination
of factors that historically bode well for the bond market, especially
long-term issues. Yields remain attractive, as inflation maintains the same
modest pace that it has demonstrated over the past five years, giving every
indication of being well under control. At the same time, the economy
continues to moderate, as evidenced by the lack of price pressure at the
consumer and producer levels, steady employment statistics, low labor costs,
and a stable money supply.
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Photographic image of head shot of Chairman and Chief Executive Officer of
Nuveen.
"Municipal bonds continue to play an important role in meeting the
investment goals of conservative investors."
Dear shareholder
As I begin my duties as the new chairman and chief executive officer of John
Nuveen & Co. Incorporated and chairman of the board of the Nuveen
exchange-traded funds, I am pleased to have this opportunity to report to you
on the performance of your funds. My experience at Nuveen over the past 19
years has shaped my commitment to maintaining Nuveen's tradition of value
investing and prudent management. We continue to focus on building shareholder
value, providing research-oriented management, and delivering dependable
performance, in the belief that this focus will contribute to many more years
of investment success for our fund shareholders.
Municipal bonds continue to play an important role in meeting the investment
goals of conservative investors. The performance of the exchange-traded funds
covered in this report demonstrates the ability of quality investments to
provide extremely attractive tax-free income. As of October 31, 1996, the
current annual yields on share price for these funds ranged from 6.66% to
6.81%. To match these yields, an investor in the 36% federal income tax
bracket would have had to earn at least 10.41% on taxable alternatives.
Without question, taxable yields at this level on investments of comparable
quality can be difficult to obtain in today's markets.
The net asset values of these funds declined slightly over the 12 months
ended October 31, reflecting the mid-1996 uncertainty that drove prices lower
<PAGE>
and yields higher. Yet returns remained attractive. For the funds covered in
this report, total returns, representing changes in net asset value and
reinvestment of all dividends and capital gains, if any, ranged from 6.15% to
6.37%, equivalent to taxable investments with total returns of 10.00% to
10.28%. As concerns about the effects of a potential flat tax evaporated and
the Federal Reserve continued to stand firm on interest rates, confidence in
the bond market was restored in November following the fiscal year ends of
these funds.
I would like to take this opportunity to share with you the news of some
recent developments that will give Nuveen the flexibility to meet expanded
investor needs for capital preservation, current income, and future growth.
In November, we introduced the Nuveen Growth and Income Stock Fund, the
first of three Nuveen equity-based mutual funds designed to provide a
high-quality complement to our current municipal bond funds. These new funds
will be offered in affiliation with Institutional Capital Corporation (ICAP),
an institutional equity management firm located in Chicago that shares
Nuveen's values and investment management style. Tailor-made to address the
needs of many Nuveen investors, these funds can play a critical role in
achieving a balanced strategy for investors who expect their investments to
provide a core element of their financial security.
In another move that will increase the range of investment solutions for
investors, Nuveen is acquiring Flagship Resources, Inc., a fixed income mutual
fund specialist based in Dayton, Ohio. Flagship is a firm that shares our
views on the importance of research and emphasizes a conservative, value-
oriented approach to portfolio management. In January 1997, the tax-exempt
mutual fund activities of Flagship and Nuveen will be merged, resulting in
more than 40 municipal funds, the broadest selection available in the U.S.
We are excited about these recent developments, and we are pleased to be
bringing Nuveen investors expanded options for achieving wealth preservation,
dependable income, and long-term asset growth. We thank you for your continued
confidence in Nuveen.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 16, 1996
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Photographic image of montage of letters received by Nuveen.
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, discusses the
current environment in the municipal market and aspects of Nuveen's management
approach
Did the November elections have any impact on the municipal market?
No. While both the stock and bond markets have enjoyed post-election
rallies, the markets had substantially anticipated the outcome of the
elections, that is, the re-election of a Democratic President and the
continued Republican majority in Congress. Maintaining the status quo of the
past four years should have little effect on the municipal market.
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What is the current mood of the municipal market?
The overall tone of the municipal market today is very positive. Over the past
year, we have seen municipals perform well in comparison to Treasuries.
Adding to the general optimism is the fact that the election has ended all
talk of a flat tax for now, eliminating one source of uncertainty regarding
municipal value. Based on these factors, we expect market sentiment to stay on
the positive side in the coming months.
Are there areas of the market that look especially attractive?
Regionally, the Midwest has turned in strong performance over the past year.
This is due to the fact that the economies of Illinois, Michigan, and Ohio have
done very well recently, with bonds from issuers in these states benefiting
from price appreciation relative to the market.
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market
Do the Nuveen funds currently hold many bonds from Midwestern issuers?
Historically, Nuveen's national funds have always been slightly overweighted
in bonds from Midwestern issuers. Two main reasons account for this:
o Because interest from Illinois-issued municipal bonds generally is not
deductible when calculating state taxes, these bonds often provide more
attractive yields and prices than bonds from other states. Therefore,
at certain times, we tend to hold more bonds from this Midwestern state.
o Because of our long history in Chicago, we are particularly well
acquainted with credits in this part of the country.
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We believe that much of the recent relative price appreciation opportunity
in Midwest bonds may have been realized, with many of these bonds now reaching
what we would consider full value.
Does the portfolio management approach differ between older and newer Nuveen
funds?
While all of our funds are managed using the same philosophy and approach to
security selection and portfolio construction, each fund has a unique history
and set of circumstances that create different opportunities. Adding to this
diversity is the fact that each portfolio manager has an individual style.
These differences manifest themselves in slight variations. For example, one
manager might identify more frequent opportunities to change portfolio
holdings over the course of a year, while another manager might choose to buy
more of a certain issue or sell at a different time.
However, all of our portfolio managers use the same fundamental value
approach in the search for bonds that we believe are positioned to outperform
their peers. This means that we generally focus on the same types of credits
and same time horizons, and we try to maintain the same geographical and
sector diversification. Our management approach involves a team atmosphere,
even though each manager is overseeing separate portfolios.
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Can you comment on the overall credit quality of the Nuveen funds?
Over the course of 1996, the market has seen more upgrades than downgrades in
bond credit ratings, and our portfolios generally reflect this overall market
trend. As opportunity allowed, Nuveen portfolio managers maintained or
upgraded bonds in their portfolios to increase value and extend call protection.
What is the status of bond calls in Nuveen's older portfolios?
Our funds--especially the older state and national funds--have been dealing
with the issue of bond calls and pre-refundings for years. Although this has
put pressure on dividends, all of our funds have performed very well through
this period. Generally, we don't expect bond calls and pre-refundings to play
as major a role over the next few years as they have recently. While some of
our funds still have pre-refunded and current call risk, others have
restructured their portfolios and have virtually no call exposure.
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NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC.
NPP
Dividends of NPP have been consistently at an attractive level
despite modest reductions in February and August. Dividends are adjusted
periodically to reflect the current earnings of the portfolio.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/13/95 $0.0900
12/13/95 $0.0900
01/10/96 $0.0900
02/13/96 $0.0865
03/13/96 $0.0865
04/11/96 $0.0865
05/13/96 $0.0865
06/12/96 $0.0865
07/11/96 $0.0865
08/13/96 $0.0840
09/11/96 $0.0840
10/10/96 $0.0840
<CAPTION>
FUND HIGHLIGHTS 10/31/96
<S> <C>
Yield 6.66%
Taxable-equivalent yield 10.41%
Annual total return on NAV 6.15%
Taxable-equivalent total return 10.12%
Share price $15.125
NAV $15.07
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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<TABLE>
NUVEEN MUNICIPAL ADVANTAGE FUND, INC.
NMA
Dividends of NMA have been consistently at an attractive level despite modest
reductions in February and August. Dividends are adjusted periodically to
reflect the current earnings of the portfolio.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/13/95 $0.0900
12/13/95 $0.0900
01/10/96 $0.0900
02/13/96 $0.0870
03/13/96 $0.0870
04/11/96 $0.0870
05/13/96 $0.0870
06/12/96 $0.0870
07/11/96 $0.0870
08/13/96 $0.0855
09/11/96 $0.0855
10/10/96 $0.0855
<CAPTION>
FUND HIGHLIGHTS 10/31/96
<S> <C>
Yield 6.78%
Taxable-equivalent yield 10.59%
Annual total return on NAV 6.37%
Taxable-equivalent total return 10.28%
Share price $15.125
NAV $15.48
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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<TABLE>
NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NMO
Dividends of NMO have been consistently at an attractive level despite a modest
reduction in February. Dividends are adjusted periodically to reflect the
current earnings of the portfolio.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
11/13/95 $0.0900
12/13/95 $0.0900
01/10/96 $0.0900
02/13/96 $0.0865
03/13/96 $0.0865
04/11/96 $0.0865
05/13/96 $0.0865
06/12/96 $0.0865
07/11/96 $0.0865
08/13/96 $0.0865
09/11/96 $0.0865
10/10/96 $0.0865
<CAPTION>
FUND HIGHLIGHTS 10/31/96
<S> <C>
Yield 6.81%
Taxable-equivalent yield 10.64%
Annual total return on NAV 6.15%
Taxable-equivalent total return 10.00%
Share price $15.25
NAV $15.66
The price, net asset value and dividend history used in this chart constitute
past performance and do not necessarily predict the future price, net asset
value or dividends of the Fund or of any other Nuveen Fund.
</TABLE>
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Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, October 31, 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, the tax rate is assumed to be 36% for shareholders,
based on incomes of $121,300-$263,750 for investors filing singly,
$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 liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by the total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if any.
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Taxable equivalent total return
The total 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 total
return on NAV.
Leverage
A technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term
preferred shares. The proceeds from the sale of the preferred shares can be
used to purchase additional long-term bonds, thus increasing the portfolio's
income stream. Changes in net asset value per share, both up and down, are
also magnified by leverage.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended October 31, 1996. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
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<CAPTION>
SHAREHOLDER MEETING REPORT
On July 24, 1996, the following Nuveen Exchange-Traded Funds held an Annual
Meeting of Shareholders. At the meeting, shareholders voted to elect directors
of the Funds and to ratify selection of Ernst & Young L.L.P. as the auditors
for the Funds. The directors elected at the meeting include: Lawrence H. Brown,
Anthony T. Dean, Anne E. Impellizzeri, and Peter R. Sawers.
NPP NMA NMO
<S> <C> <C> <C>
APPROVAL OF THE DIRECTORS
WAS REACHED AS FOLLOWS:
Lawrence H. Brown
For 51,371,018 37,550,427 39,565,281
Abstain 618,632 462,967 428,830
---------- ---------- ----------
Total 51,989,650 38,013,394 39,994,111
========== ========== ==========
Anthony T. Dean
For 51,370,035 37,553,128 39,583,019
Abstain 619,615 460,266 411,092
---------- ---------- ----------
Total 51,989,650 38,013,394 39,994,111
========== ========== ==========
Anne E. Impellizzeri
For 51,371,273 37,552,928 39,565,312
Abstain 618,377 460,466 428,799
---------- ---------- ----------
Total 51,989,650 38,013,394 39,994,111
========== ========== ==========
Peter R. Sawers
For 51,366,553 37,550,324 39,560,540
Abstain 623,097 463,070 433,571
---------- ---------- ----------
Total 51,989,650 38,013,394 39,994,111
========== ========== ==========
APPROVAL TO UPDATE TERMS
OF MUNIPREFERRED WAS
REACHED AS FOLLOWS:
For 32,431,129 22,496,944 N/A
Against 660,804 590,197 N/A
Abstain 2,078,019 1,659,440 N/A
---------- ---------- ----------
Total 35,169,952 24,746,581 N/A
========== ========== ==========
RATIFICATION OF AUDITORS
WAS REACHED AS FOLLOWS:
For 50,970,776 37,379,013 39,422,665
Against 251,315 168,717 165,819
Abstain 767,559 465,664 405,627
---------- ---------- ----------
Total 51,989,650 38,013,394 39,994,111
========== ========== ==========
</TABLE>
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<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC. (NPP)
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 0.6%
$ 3,445,000 Alabama Housing Finance Authority, Single Family Mortgage Revenue
Bonds (GNMA Collateralized Home Mortgage Revenue Bond Program),
1988 Series A., 8.000%, 10/01/20 AAA 10/98 at 102 $ 3,626,310
3,700,000 Alabama Water Pollution Control Authority, Revolving Fund Loan Bonds,
Series 1994, 6.750%, 8/15/17 Aaa 8/05 at 100 4,079,509
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ALASKA - 0.4%
1,735,000 Alaska Housing Finance Corporation, Insured Mortgage Program Bonds,
1990 First Series, 7.800%, 12/01/30 Aa1 12/00 at 102 1,765,206
3,830,000 Alaska Housing Finance Corporation, Collateralized Bonds, 1989 First
Series (Veterans Mortgage Program), 7.450%, 12/01/29 Aaa 6/00 at 102 3,955,930
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ARIZONA - 0.5%
5,665,000 Yuma Regional Medical Center on behalf of Hospital District No. 1 of
Yuma County, Arizona, Hospital Revenue Improvement and Refunding
Bond (Yuma Regional Medical Center Project), Series 1992,
8.000%, 8/01/17 A 8/02 at 101 1/2 6,442,068
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ARKANSAS - 1.6%
19,275,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue
Bonds, Series 1988A, GNMA Collateralized, 8.400%, 8/01/20
(Alternative Minimum Tax) AAA 8/98 at 102 20,082,044
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CALIFORNIA - 11.3%
24,000,000 Department of Veterans Affairs of the State of California, Home Purchase
Revenue Bonds, 1988 Series A, 8.300%, 8/01/19 (Alternative Minimum Tax) Aa 8/98 at 102 25,068,240
11,900,000 State Public Works Board of the State of California, Lease Revenue Bonds
(The Trustees of The California State University), 1990 Series A
(California State University Library Projects), 6.250%, 9/01/16 A 9/00 at 102 12,210,947
13,820,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda
University Medical Center Project), Series 1990-B, 7.000%, 12/01/22
(Pre-refunded to 12/01/00) Aaa 12/00 at 102 15,410,544
24,265,000 Department of Water and Power of The City of Los Angeles, California,
Electric Plant Refunding Revenue Bonds, Second Issue of 1993,
4.750%, 11/15/19 Aa 11/03 at 102 20,924,195
3,335,000 Department of Water and Power of The City of Los Angeles, Electric Plant
Refunding Revenue Bonds, Issue of 1994, 4.750%, 8/15/13 Aaa 8/03 at 102 3,006,936
13,450,000 Ontario Redevelopment Financing Authority (San Bernardino County,
California), 1995 Revenue Refunding Bonds (Ontario Redevelopment
Project No. 1), 7.200%, 8/01/17 Aaa No Opt. Call 16,418,953
20,420,000 Community Redevelopment Agency of the City of Palmdale, Residential
Mortgage Revenue Refunding Bonds, 1991 Series A, 7.150%, 2/01/10 AAA No Opt. Call 22,789,333
2,325,000 Community Redevelopment Agency of the City of Palmdale, Restructured
Single Family Mortgage Revenue Bonds, Series 1986D, 8.000%, 4/01/16 Aaa No Opt. Call 2,863,726
7,500,000 Sacramento Municipal Utility District (California), Electric Revenue
Refunding Bonds, 1993 Series G, 4.750%, 9/01/21 Aaa 9/03 at 100 6,500,925
8,140,000 San Bernardino Joint Powers Financing Authority, Lease Revenue Bonds
(State of California Department of Transportation Lease), 1995 Series A,
5.500%, 12/01/20 Con(A) 12/05 at 102 7,768,979
10,000,000 San Bernardino County, California, Certificates of Participation, Series 1995
(Medical Center Financing Project), 5.500%, 8/01/15 Aaa 8/05 at 102 9,798,700
4,650,000 Southern California Public Power Authority (a public entity organized
under the laws of the State of California), (Palo Verde Project), Power
Project Revenue Bonds, 1993 Refunding Series A, 5.000%, 7/01/15 A1 7/03 at 102 4,276,094
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COLORADO - 3.2%
5,000,000 Castle Rock Ranch Public Improvements Authority, Public Facilities
Revenue Bonds, Series 1996, 6.250%, 12/01/17 AA(p) 12/15 at 100 5,255,750
11,920,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1990A, 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/00 at 102 13,405,828
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<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
COLORADO (CONTINUED)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A:
$ 6,470,000 8.750%, 11/15/23 (Alternative Minimum Tax) Baa 11/01 at 102 $ 7,660,351
3,595,000 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 4,035,244
4,720,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D, 7.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 4,956,944
5,000,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B, 7.250%, 11/15/23 (Alternative Minimum Tax) Baa 11/02 at 102 5,389,100
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FLORIDA - 3.8%
10,445,000 Florida Housing Finance Agency, GNMA Collateralized Home Ownership
Mortgage Revenue Bonds, 1988 Series G1 Bonds, 8.300%, 6/01/20
(Alternative Minimum Tax) Aaa 12/98 at 103 10,899,358
10,000,000 State of Florida, Full Faith and Credit, State Board of Education, Capital
Outlay Bonds, 1996 Series A, 4.750%, 1/01/16 Aaa 1/06 at 101 9,024,400
25,935,000 City of St. Petersburg Health Facilities Authority (Florida), Allegany
Health System Revenue Bonds (St. Mary's Hospital, Inc.), Series 1985 B,
7.750%, 12/01/15 (Pre-refunded to 12/01/99) Aaa 12/99 at 102 28,990,662
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.7%
26,575,000 Municipal Electric Authority of Georgia, General Power Revenue Bonds,
1987A Series, 8.375%, 1/01/20 A 1/97 at 102 27,279,769
9,000,000 George L. Smith II Georgia World Congress Center Authority, Revenue
Bonds (Domed Stadium Project), Series 1990, 7.875%, 7/01/20
(Alternative Minimum Tax) AA- 7/00 at 102 9,893,340
10,000,000 Development Authority of Monroe County (Georgia), Pollution Control
Revenue Bonds (Georgia Power Company Plant Scherer Project), Second
Series 1994, 6.750%, 10/01/24 A1 10/99 at 102 10,438,400
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 6.0%
10,600,000 Illinois Development Financed Authority, Revenue and Refunding Bonds,
Series 1990A (Columbus-Cuneo-Cabrini Medical Center),
8.500%, 2/01/15 (Pre-refunded to 2/01/00) Baa 2/00 at 102 12,047,536
6,555,000 Illinois Development Finance Authority, Multi-Family Housing Revenue
Bonds, Series 1992 (Town and Garden Apartments Project),
7.800%, 3/01/06 (Alternative Minimum Tax) BBB+ 3/02 at 102 6,923,850
5,960,000 Illinois Development Finance Authority, Multi-Family Housing Revenue
Bonds, Series 1992 (Town and Garden Apartments Project),
7.200%, 9/01/08 (Alternative Minimum Tax) BBB+ 3/02 at 102 6,192,500
10,000,000 Illinois Educational Facilities Authority, Adjustable Demand Revenue
Bonds, The University of Chicago, Series 1985, Conversion To AFixed
Interest Rate, 5.700%, 12/01/25 Aa1 12/03 at 102 9,716,200
Illinois Health Facilities Authority, Revenue Bonds, Series 1989B
(Northwestern Memorial Hospital):
5,380,000 7.200%, 8/15/07 (Pre-refunded to 8/15/99) Aaa 8/99 at 102 5,877,273
4,620,000 7.200%, 8/15/07 Aa 8/99 at 102 4,960,956
12,910,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1994A
(Northwestern Memorial Hospital), 6.000%, 8/15/24 Aa 8/04 at 102 13,037,034
2,000,000 City of Chicago, Cook County, Illinois, General Obligation Bonds, Project
and Refunded Series 1987B, 9.250%, 1/01/13 (Pre-refunded to 7/01/97) A 7/97 at 102 2,109,240
5,800,000 City of Chicago, Illinois, Gas Supply Revenue Bonds, 1990 Series A (The
Peoples Gas Light and Coke Company Project), 8.100%, 5/01/20
(Alternative Minimum Tax) AA- 5/00 at 102 6,425,356
9,865,000 City of Chicago, Chicago-O'Hare International Airport, Special Facility
Revenue Bonds (United Air Lines, Inc. Project), Series 1984C,
8.200%, 5/01/18 Baa2 5/99 at 103 10,726,806
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
INDIANA - 2.2%
$ 5,250,000 Indiana Bond Bank, State Revolving Fund Program Bonds, Series 1994A
Guarantee Revenue Bonds, 6.000%, 2/01/16 A 2/04 at 102 $ 5,346,338
5,805,000 Indiana State Office Building Commission, Capital Complex Revenue
Bonds, Series 1987 (State Office Building II Facility), 8.500%, 7/01/04
(Pre-refunded to 7/01/97) Aaa 7/97 at 102 6,098,617
5,000,000 The Indianapolis Local Public Improvement Bond Bank, Series 1988 D
Bonds, 8.500%, 2/01/18 (Pre-refunded to 2/01/98) N/R 2/98 at 102 5,360,450
5,000,000 Fort Wayne South Side School Building Corporation, First Mortgage
Bonds, Series 1994, Allen County, Indiana, 6.125%, 1/15/12 Aaa 1/04 at 102 5,206,400
5,730,000 Michigan City School Building Corporation, First Mortgage Bonds, Series
1994 A, LaPorte and Porter Counties, Indiana, 6.125%, 12/15/09 Aaa 12/04 at 102 6,052,542
- ------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.4%
16,855,000 Iowa Finance Authority, Single Family Mortgage Revenue Bonds, 1988
Issue B (GNMA Mortgage-Backed Securities Program), 8.250%, 5/01/20
(Alternative Minimum Tax) Aaa 11/98 at 102 17,675,164
- ------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.2%
1,945,000 Sedgwick County, Kansas, Shawnee County, Kansas and Leavenworth
County, Kansas, GNMA Collateralized Mortgage Revenue Bonds,
1989 Series A, 7.875%, 12/01/21 (Alternative Minimum Tax) Aaa 6/99 at 103 2,069,422
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.9%
10,000,000 County of Carroll, Kentucky, Collateralized Pollution Control Revenue
Bonds (Kentucky Utilities Company Project), 1992 Series A,
7.450%, 9/15/16 Aa2 9/02 at 102 11,423,500
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.1%
6,075,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series
1988F, 7.875%, 12/01/21 (Alternative Minimum Tax) Aaa 12/00 at 103 6,433,607
7,220,000 Parish of Jefferson Home Mortgage Authority (Louisiana), GNMA
Collateralized Single Family Mortgage Revenue Bonds, Series 1989A,
7.875%, 12/01/21 (Alternative Minimum Tax) Aaa 12/00 at 103 7,646,197
5,630,000 New Orleans Housing Development Corporation, Multi-Family Housing
Revenue Refunding Bonds, Series 1990A (Curran Place Apartments/
Fannie Mae Collateralized), 7.700%, 8/01/23 AAA 6/03 at 100 6,042,735
6,500,000 City of Shreveport, State of Louisiana, Water and Sewer Revenue Bonds,
1986 Series A, 5.950%, 12/01/14 Aaa 12/03 at 103 6,659,315
- ------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.8%
11,000,000 Maine State Housing Authority, Mortgage Purchase Bonds, 1994 Series A,
5.700%, 11/15/26 AA- 2/04 at 102 10,661,750
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.2%
7,475,000 Housing Opportunities Commission of Montgomery County (Montgomery
County, Maryland), Multi-Family Housing Revenue Bonds, 1994
Series A, 6.250%, 7/01/28 Aa 7/04 at 102 7,676,003
7,090,000 City of Takoma Park, Maryland, Hospital Facilities Refunding and
Improvement Revenue Bonds (Washington Adventist Hospital), Series
1995, 6.500%, 9/01/12 Aaa No Opt. Call 7,852,317
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 7.1%
7,375,000 Massachusetts Bay Transportation Authority, General Transportation
System Bonds, 1988 Series A, 7.750%, 3/01/12 (Pre-refunded to 3/01/98) Aaa 3/98 at 102 7,875,910
14,375,000 Massachusetts Bay Transportation Authority, General Transportation
System Bonds, 1990 Series B, 7.875%, 3/01/21 (Pre-refunded to 3/01/01) Aaa 3/01 at 102 16,526,075
4,000,000 Massachusetts Health and Educational Facilities Authority, Revenue
Bonds, Baystate Medical Center Issue, Series C, 7.500%, 7/01/20
(Pre-refunded to 7/01/99) A+ 7/99 at 102 4,366,440
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$10,000,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds,
New England Medical Center Hospitals Issue, Series F, 6.625%, 7/01/25 Aaa 7/02 at 102 $ 10,837,700
4,475,000 Massachusetts Housing Finance Agency, Multi-Family Residential
Development Bonds, 1989 Series A (Fannie Mae Collateralized),
7.650%, 2/01/28 (Alternative Minimum Tax) Aaa 8/99 at 102 4,702,509
12,940,000 Massachusetts Housing Finance Agency, Single Family Housing Revenue
Bonds, Series 7, 8.400%, 12/01/16 (Alternative Minimum Tax) Aa 6/98 at 102 13,494,867
Massachusetts Municipal Wholesale Electric Company, Power Supply
System Revenue Bonds, 1987 Series A:
12,210,000 8.750%, 7/01/18 (Pre-refunded to 7/01/97) Aaa 7/97 at 102 12,848,705
525,000 8.750%, 7/01/18 BBB+ 7/97 at 102 610,610
8,000,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1990
Series A, 7.500%, 4/01/16 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 8,929,520
10,065,000 City of Boston, Massachusetts, Revenue Bonds, Boston City Hospital
(FHA Insured Mortgage), Series A, 7.625%, 2/15/21 (Pre-refunded
to 8/15/00) Aaa 8/00 at 102 11,346,778
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.4%
4,430,000 Grand Rapids Housing Corporation, Multi-Family Revenue Refunding
Bonds, Series 1992 (FHA Insured Mortgage Loan-Section 8 Assisted
Elderly Project), 7.375%, 7/15/41 AAA 1/04 at 104 4,845,357
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.3%
15,340,000 The Dakota County Housing and Redevelopment Authority, Single
Family Mortgage Revenue Bonds (Fannie Mae Mortgage-Backed
Securities Program), Series 1994A, 6.900%, 10/01/27 (Alternative
Minimum Tax) AAA 4/04 at 102 16,140,901
21,845,000 The Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota, Sales Tax Revenue Refunding Bonds (Civic Center Project),
Series 1996, 7.100%, 11/01/23 Aaa 11/15 at 103 26,053,221
Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota, Single Family Mortgage Revenue Refunding Bonds (Middle
Income Program, Phase II - FNMA Mortgage-Backed Securities
Program), Series 1995:
2,685,000 6.400%, 3/01/21 Aaa 3/05 at 102 2,781,177
10,000,000 6.800%, 3/01/28 Aaa 3/05 at 102 19/32 10,690,100
- ------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.8%
9,470,000 Missouri Housing Development Commission, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed Securities Program), 1988
Series A, 8.300%, 5/01/19 (Alternative Minimum Tax) AAA 5/98 at 102 9,861,300
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.1%
13,785,000 Nebraska Investment Finance Authority, Single Family Mortgage Revenue
Bonds, 1988 Series 1, 8.125%, 8/15/38 (Alternative Minimum Tax) Aaa 8/98 at 102 14,467,495
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.3%
10,505,000 State of Nevada, General Obligation (Limited Tax), Bonds (Nevada
Municipal Bond Bank Project No. 52), Series July 1, 1996A,
6.000%, 5/15/21 Aa 5/06 at 101 10,672,765
City of Las Vegas Downtown Redevelopment Agency, Tax Increment
Revenue Bonds (City of Las Vegas Downtown Redevelopment
Project), Series 1986A (Las Vegas, Nevada), (1989
Remarketing):
1,440,000 7.900%, 6/01/06 (Pre-refunded to 6/01/98) A- 6/98 at 102 1,547,410
2,440,000 7.900%, 6/01/06 A- 6/98 at 102 2,607,848
8,285,000 7.900%, 6/01/09 (Pre-refunded to 6/01/98) A- 6/98 at 102 8,902,978
5,100,000 Washoe County, Nevada, Hospital Revenue Bonds (Washoe Medical
Center, Inc. Project), Series 1989A, 7.600%, 6/01/19 (Pre-refunded
to 6/01/99) A 6/99 at 102 5,568,129
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW HAMPSHIRE - 0.3%
$ 3,070,000 The Industrial Development Authority of the State of New Hampshire,
Pollution Control Revenue Bonds (The United Illuminating Company
Project-1989 Series A), 8.000%, 12/01/14 (Alternative Minimum Tax) BBB- 12/99 at 103 $ 3,273,480
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.4%
4,350,000 Dormitory Authority of the State of New York, State University
Educational Facilities, Revenue Bonds, Series 1990A, 7.700%, 5/15/12
(Pre-refunded to 5/15/00) Aaa 5/00 at 102 4,895,534
4,000,000 Dormitory Authority of the State of New York, State University
Educational Facilities, Revenue Bonds, Series 1990B, 6.000%, 5/15/17 Baa1 5/00 at 100 3,928,120
25,205,000 New York State Medical Care Facilities Finance Agency, Hospital Insured
Mortgage Revenue Bonds, 1987 Series A Refunding, 8.000%, 2/15/25
(Pre-refunded to 8/15/97) Aaa 8/97 at 102 26,504,822
4,000,000 New York State Medical Care Facilities Finance Agency, St. Luke's-
Roosevelt Hospital Center FHA-Insured Mortgage Revenue Bonds,
1989 Series A, 7.375%, 2/15/19 AA 2/00 at 102 4,248,880
14,750,000 New York State Medical Care Facilities Finance Agency, Mental Health
Services Facilities Improvement Revenue Bonds, 1993 Series F
Refunding, 5.375%, 2/15/14 Aaa 2/04 at 102 14,336,410
15,000,000 New York State Urban Development Corporation, Correctional Facilities
Revenue Bonds, Series G, 7.250%, 1/01/14 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 16,555,200
9,295,000 Municipal Assistance Corporation for the City of New York, New York
Series 67 Bonds, 7.625%, 7/01/08 Aa 7/99 at 102 10,177,839
The City of New York, General Obligation Bonds, Fiscal 1987 Series D:
4,150,000 8.500%, 8/01/08 (Pre-refunded to 8/01/97) Aaa 8/97 at 102 4,372,316
850,000 8.500%, 8/01/08 Baa1 8/97 at 102 894,175
The City of New York, General Obligation Bonds, 1992 Series C:
7,560,000 6.625%, 8/01/14 (Pre-refunded to 8/01/02) Aaa 8/02 at 101 1/2 8,432,726
440,000 6.625%, 8/01/14 Aaa 8/02 at 101 1/2 480,621
12,500,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series A,
Fixed Rate Tax-Exempt Bonds, 7.000%, 8/01/05 Baa1 No Opt. Call 13,687,000
16,295,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series F,
5.750%, 2/01/15 Baa1 2/06 at 101 1/2 15,575,739
11,530,000 New York City Municipal Water Finance Authority, New York, Water and
Sewer System Revenue Bonds, Fiscal 1989 Series A, 7.625%, 6/15/16
(Pre-refunded to 6/15/97) Aaa 6/97 at 101 1/2 11,977,133
8,350,000 New York City, New York, Municipal Water Finance Authority, Water and
Sewer System Revenue Bonds, Fiscal 1987 Series B, 8.250%, 6/15/16
(Pre-refunded to 6/15/97) Aaa 6/97 at 102 8,745,540
6,500,000 New York City Municipal WaterFinance Authority (New York), Water and
Sewer System Revenue Bonds, Fiscal 1990 Series A, 7.250%, 6/15/11
(Pre-refunded to 6/15/99) A 6/99 at 101 1/2 7,064,590
10,000,000 New York City Municipal Water Finance Authority, Water and Sewer
System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 Aaa 6/06 at 101 9,992,200
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.9%
8,125,000 North Carolina Eastern Municipal Power Agency, Power System Revenue
Bonds, Refunding Series 1987 A, 7.250%, 1/01/21 Baa1 1/97 at 102 8,300,094
17,960,000 North Carolina Eastern Municipal Power Agency, Power System Revenue
Bonds, Refunding Series 1988 A, 8.000%, 1/01/21 (Pre-refunded
to 1/01/98) Aaa 1/98 at 102 19,127,400
9,250,000 North Carolina Municipal Power Agency Number 1, Catawba Electric
Revenue Refunding Bonds, Series 1988, 7.000%, 1/01/16 A 1/98 at 102 9,630,360
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.0%
8,445,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds
(GNMA Mortgage-Backed Securities Program), 1989 Series A,
7.650%, 3/01/29 (Alternative Minimum Tax) AAA 9/99 at 102 8,947,900
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
OHIO (CONTINUED)
$ 1,160,000 Toledo-Lucas County Port Authority, Development Revenue Bonds
(Northwest Ohio Bond Fund), Series 1989A, 8.250%, 11/15/04
(Alternative Minimum Tax) N/R 11/99 at 102 $ 1,200,890
665,000 Toledo-Lucas County Port Authority, Development Revenue Bonds
(Northwest Ohio Bond Fund), Series 1989C, 8.250%, 11/15/99
(Alternative Minimum Tax) N/R No Opt. Call 695,982
965,000 Toledo-Lucas County Port Authority, Development Revenue Bonds
(Northwest Ohio Bond Fund), Series 1989E, 8.375%, 5/15/05
(Alternative Minimum Tax) N/R 5/00 at 102 1,006,929
1,505,000 Toledo-Lucas County Port Authority, Development Revenue Bonds
(Northwest Ohio Bond Fund), Series 1989F, 8.375%, 11/15/04
(Alternative Minimum Tax) N/R 11/99 at 102 1,562,009
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.2%
9,850,000 Oklahoma Industries Authority, Health Facilities Revenue Bonds (Sisters
of Mercy Health System, St. Louis, Inc.), Series 1989 A, 7.500%, 6/01/18
(Pre-refunded to 6/01/99) Aaa 6/99 at 102 10,803,874
4,475,000 The Comanche County Hospital Authority (Lawton, Oklahoma), Hospital
Revenue Bonds, Series 1989, 8.050%, 7/01/16 (Pre-refunded to 7/01/99) AAA 7/99 at 102 4,976,066
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.5%
5,390,000 Pennsylvania Higher Educational Facilities Authority (Commonwealth
of Pennsylvania), Revenue Bonds (Thomas Jefferson University-Jefferson
Park Hospital), 1990 Series, 7.750%, 11/01/15 A+ 11/00 at 102 6,126,705
- ------------------------------------------------------------------------------------------------------------------------------------
RHODEISLAND - 0.8%
10,000,000 Rhode Island Housing and Mortgage Finance Corporation, Series 3-B
Bonds, 8.050%, 4/01/22 (Alternative Minimum Tax) AA+ 10/00 at 102 10,525,800
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.9%
15,735,000 South Carolina State Housing Finance and Development Authority,
Homeownership Mortgage Purchase Bonds, 1988 Series A,
8.600%, 7/01/19 (Alternative Minimum Tax) Aa 7/98 at 102 16,186,752
8,000,000 Piedmont Municipal Power Agency, South Carolina, Electric Revenue
Bonds, 1986 Refunding Series A, 7.250%, 1/01/22 Baa1 1/97 at 101 1/2 8,165,120
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.4%
South Dakota Health and Educational Facilities Authority,
Revenue Bonds, Series 1989 (Sioux Valley Hospital Issue):
4,630,000 7.625%, 11/01/13 (Pre-refunded to 11/01/98) Aa 11/98 at 102 5,026,374
370,000 7.625%, 11/01/13 Aa 11/98 at 102 400,721
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.8%
2,550,000 Tennessee Housing Development Agency, Homeownership Program
Bonds, Issue G, 7.650%, 7/01/06 Aa 7/03 at 100 2,706,290
7,300,000 The Health, Educational and Housing Facility Board of the City of
Memphis, Tennessee, Multifamily Mortgage Revenue Refunding Bonds
(Riverdale Plaza Apartments Project),Series 1993, 6.350%, 7/20/28 AAA 1/03 at 103 7,472,864
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.6%
9,570,000 State of Texas, Veterans' Bonds, Series 1985, General Obligation Bonds,
8.300%, 12/01/16 (Pre-refunded to 12/01/99) AAA 12/99 at 100 10,670,263
11,800,000 City of Austin, Texas, Combined Utility Systems Revenue Refunding
Bonds, Series 1992, 5.750%, 11/15/16 Aaa 11/02 at 100 11,832,450
1,080,000 Bexar County Housing Finance Corporation, Texas, Single Family
Mortgage Revenue Bonds, Series 1984, 10.875%, 3/01/10 A 3/97 at 101 1,098,770
25,000,000 Brazos River Authority (Texas), Collateralized Revenue Refunding Bonds
(Houston Lighting and Power Company Project), Series 1989A,
7.625%, 5/01/19 A2 7/99 at 102 27,156,750
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$20,000,000 Dallas-Fort Worth International Airport Facility Improvement
Corporation, American Airlines, Inc. Revenue Bonds, Series 1990,
7.500%, 11/01/25 (Alternative MinimumTax) Baa2 11/00 at 102 $ 21,300,400
6,730,000 Fort Worth Housing Finance Corporation, Home Mortgage Revenue
Refunding Bonds, Series 1991A, 8.500%, 10/01/11 Aa 10/01 at 103 7,360,938
4,250,000 Harris County Health Facilities Development Corporation, Hospital
Revenue Bonds (Texas Children's Hospital Project), Series 1989A,
7.000%, 10/01/19 (Pre-refunded to 10/01/99) Aaa 10/99 at 102 4,635,688
720,000 Hidalgo County Housing Finance Corporation, Single Family Mortgage
Revenue Bonds (GNMA and FNMA Collateralized),Series 1994A,
6.750%, 10/01/15 (Alternative Minimum Tax) Aaa 4/04 at 102 741,672
25,200,000 Matagorda County Navigation District Number One (Texas), Collateralized
Revenue Refunding Bonds (Houston Lighting andPower Company
Project), Series 1989C, 7.125%, 7/01/19 Aaa 7/99 at 102 27,326,880
13,740,000 McAllen Health Facilities Development Corporation (Texas), Health
Facilities Revenue Bonds (Sisters of Mercy Health System, St.Louis, Inc.),
Series 1989 A, 7.250%, 6/01/15 (Pre-refunded to 6/01/99) Aaa 6/99 at 102 14,969,730
9,000,000 City of San Antonio, Texas, Electric and Gas Systems Revenue Improvement
Bonds, New Series 1988, 8.000%, 2/01/16 (Pre-refunded to 2/01/98) Aaa 2/98 at 102 9,612,900
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.1%
13,500,000 Intermountain Power Agency (Utah), Power Supply Revenue Bonds,
Series 1987B, 7.200%, 7/01/19 Aa 7/97 at 102 14,027,310
- ------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.9%
11,000,000 Vermont Housing Finance Agency, Single Family Housing Bonds, Series 5,
7.000%, 11/01/27 (Alternative Minimum Tax) A1 11/04 at 102 11,581,570
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.9%
10,865,000 Fairfax County Water Authority (Virginia), Water Revenue Bonds,Series
1989, 7.250%, 1/01/27 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 11,991,483
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.8%
16,000,000 Washington Public Power Supply System, Nuclear Project No. 1,
Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 Aaa 7/03 at 102 15,741,120
Washington Public Power Supply System, Nuclear Project No. 1,
Refunding Revenue Bonds, Series 1989A:
22,305,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 24,502,482
17,985,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) Aa1 7/99 at 102 19,775,946
7,500,000 6.000%, 7/01/17 Aa1 7/99 at 100 7,477,275
4,095,000 Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1994A, 5.000%, 7/01/09 Aaa 7/04 at 102 3,891,724
4,000,000 Washington Public Power Supply System, Nuclear Project No. 3,
Refunding Revenue Bonds, Series 1993B, 5.700%, 7/01/18 Aa1 7/03 at 102 3,848,160
- ------------------------------------------------------------------------------------------------------------------------------------
$1,188,230,000 Total Investments - (cost $1,186,884,711) - 97.4% 1,257,664,654
==============----------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 1,500,000 Charleston County Pollution Control (Massey), Variable Rate Demand
Bonds, 3.600%, 1/01/07+ AAA 1,500,000
3,000,000 City of Chicago, Chicago-O'Hare International Airport, Special Facility
Revenue Bonds (American Airlines, Inc. Project), Series 1983B, Variable
Rate Demand Bonds, 3.650%, 12/01/17+ P-1 3,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
$ 4,500,000 Total Temporary Investments - 0.3% 4,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 28,470,022
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,290,634,676
====================================================================================================================================
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 65 $ 686,504,665 54%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 26 252,737,447 20
PORTFOLIO OF A+ A1 5 36,789,209 3
INVESTMENTS A, A- A, A2, A3 14 124,734,176 10
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 18 147,072,897 12
TEMPORARY Non-Rated Non-Rated 5 9,826,260 1
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 133 $1,257,664,654 100%
====================================================================================================================
<FN>
* Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
N/R Investment is not rated.
** Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates. 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL ADVANTAGE FUND, INC. (NMA)
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 0.4%
$ 3,700,000 Alaska Housing Finance Corporation, General Housing Purpose Bonds,
1992 Series A, 6.600%, 12/01/23 (Pre-refunded to 12/01/02) Aa 12/02 at 102 $ 4,119,839
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 11.2%
4,000,000 California Health Facilities Financing Authority, Insured Health Facility
Revenue Bonds (Catholic Healthcare West), 1989 Series A,
7.000%, 7/01/20 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 4,354,800
4,500,000 California Health Facilities Financing Authority, Insured Health Facilities
Revenue Bonds (ValleyCare Hospital Corporation), 1989 Series A,
7.000%, 5/01/20 A 5/00 at 102 4,808,250
24,260,000 State Public Works Board of the State of California, Lease Revenue
Refunding Bonds (The Regents of the University of California), 1993
Series A (Various University of California Projects), 5.500%, 6/01/21 A1 6/03 at 102 22,962,575
7,535,000 County of Contra Costa, California, 1989 Home Mortgage Revenue Bonds
(GNMA Mortgage-Backed Securities Program), 7.750%, 5/01/22
(Alternative Minimum Tax) Aaa No Opt. Call 9,183,507
12,455,000 Department of Water and Power of The City of Los Angeles, California,
Electric Plant Refunding Revenue Bonds, Second Issue of 1993,
4.750%, 11/15/19 Aa 11/03 at 102 10,740,196
10,000,000 Department of Water and Power of The City of Los Angeles, Water Works
Refunding Revenue Bonds, Issue of 1992, 6.400%, 5/15/28 Aa 5/01 at 102 10,478,300
4,420,000 Northern California Power Agency, Hydroelectric Project Number One,
Revenue Bonds, Refunding Series E, 7.150%, 7/01/24 A 7/98 at 102 4,643,033
14,490,000 Palm Desert Financing Authority, Tax Allocation Revenue Bonds, (Project
Area No. 2), 1992 Series A, 6.125%, 8/01/22 Aaa 8/02 at 102 14,911,079
5,000,000 Community Redevelopment Agency of the City of Palmdale, California,
Residential Mortgage Revenue Refunding Bonds, Series 1991-B,
7.375%, 2/01/12 AAA No Opt. Call 5,734,350
5,000,000 Community Redevelopment Agency of the City of Palmdale, Restructured
Single Family Mortgage Revenue Bonds, Series 1986A (Escrowed to
Maturity), 8.000%, 3/01/16 (Alternative Minimum Tax) Aaa No Opt. Call 6,522,350
9,315,000 City of Perris, California, Single Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities), 1989 Series A, 7.600%, 1/01/23
(Alternative Minimum Tax) Aaa No Opt. Call 11,864,236
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COLORADO - 1.1%
9,380,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1990A, 8.500%, 11/15/23 (Alternative Minimum Tax) Baa 11/00 at 102 10,748,542
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.7%
6,765,000 District of Columbia Housing Finance Agency, Collateralized Single
Family Mortgage Revenue Bonds, Series 1988F-1, 6.375%, 6/01/26
(Alternative Minimum Tax) AAA 6/04 at 103 6,896,444
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FLORIDA - 2.3%
5,000,000 Dade County (Florida) Educational Facilities Authority, Revenue Bonds,
Series 1990 (St. Thomas University Issue), 7.650%, 1/01/14
(Pre-refunded to 1/01/00) AA- 1/00 at 102 5,580,150
5,410,000 Dade County Health Facilities Authority, Hospital Revenue Bonds (South
Shore Hospital and Medical Center-FHA Insured Mortgage), Series
1989A, 7.600%, 8/01/24 A+ 8/00 at 102 5,893,925
10,990,000 City of Tampa, Florida, Allegany Health System Revenue Bonds, St. Mary's
Hospital, Inc. Issue, Series 1993, 5.125%, 12/01/23 Aaa 12/03 at 102 10,045,190
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.3%
11,310,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series O,
8.125%, 1/01/17 A 1/98 at 102 12,021,399
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS - 9.6%
$10,750,000 Illinois Development Finance Authority, Revenue and Refunding Bonds,
Series 1990A (Columbus-Cuneo-Cabrini Medical Center),
8.500%, 2/01/15 (Pre-refunded to 2/01/00) Baa 2/00 at 102 $ 12,218,020
11,625,000 Illinois Educational Facilities Authority, Adjustable Demand Revenue
Bonds, The University of Chicago, Series 1985, Conversion To A Fixed
Interest Rate, 5.700%, 12/01/25 Aa1 12/03 at 102 11,295,083
4,210,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series
1987 (West Suburban Hospital Medical Center), Oak Park, Illinois,
8.000%, 8/01/02 A 8/97 at 102 4,366,907
10,000,000 Illinois Health Facilities Authority Revenue Refunding Bonds, Series
1996A (Rush-Presbyterian-St. Luke's Medical Center Obligated
Group), 6.250%, 11/15/20 Aaa 11/06 at 102 10,416,600
11,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1989B
(ServantCor), 7.875%, 8/15/19 (Pre-refunded to 8/15/99) N/R 8/99 at 102 12,143,780
7,905,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series
1989B (Riverside Medical Center), 6.750%, 11/01/15 (Pre-refunded
to 11/01/99) A 11/99 at 100 8,170,450
5,000,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series
1989A (ServantCor), 7.875%, 8/15/19 (Pre-refunded to 8/15/99) N/R 8/99 at 102 5,519,900
7,305,000 Illinois Housing Development Authority, Residential Mortgage Revenue
Bonds, 1988 Series C, 8.100%, 2/01/22 (Alternative Minimum Tax) Aa 8/98 at 102 7,592,890
3,000,000 City of Chicago, Cook County, Illinois, General Obligation Bonds,
Project and Refunding Series 1987B, 9.200%, 1/01/05 (Pre-refunded
to 7/01/97) A 7/97 at 102 3,162,930
11,800,000 Metropolitan Pier and Exposition Authority (Illinois), McCormick Place
Expansion Project Bonds, Series 1992A, 6.500%, 6/15/27
(Pre-refunded to 6/15/03) AAA(p) 6/03 at 102 13,187,326
2,500,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry,
and Will Counties, Illinois, General Obligation Bonds, Series 1990A,
7.200%, 11/01/20 Aaa No Opt. Call 3,037,775
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INDIANA - 2.1%
9,000,000 Indiana Health Facility Financing Authority, Hospital Revenue Refunding
and Improvement Bonds, Series 1995 (Community Hospitals Projects),
5.700%, 5/15/22 Aaa 5/06 at 102 8,839,440
7,425,000 Fort Wayne International Airport Building Corporation, Airport
Improvement Bonds, Series 1994, Fort Wayne, Indiana, 5.900%, 1/01/14
(Alternative Minimum Tax) Aa 1/04 at 101 7,483,583
3,215,000 Mooresville Consolidated School Building Corporation, First Mortgage
Bonds, Series 1994B (Morgan County, Indiana), 6.400%, 7/15/15 A(p) 1/04 at 102 3,375,300
- ------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.9%
5,000,000 Iowa Finance Authority, Single Family Mortgage Bonds, 1995 Series C,
6.450%, 1/01/24 Aaa 1/05 at 102 5,172,700
3,500,000 City of Marshalltown, Iowa, Pollution Control Revenue Refunding Bonds
(Iowa Electric Light and Power Company Project), Series 1993,
5.500%, 11/01/23 Aaa 11/03 at 102 3,392,410
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.4%
10,000,000 Louisiana Public Facilities Authority, Extended Care Facilities Revenue
Bonds (Comm-Care Corporation Project), Series 1994, 11.000%, 2/01/14 BBB No Opt. Call 13,434,900
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 7.5%
Massachusetts Bay Transportation Authority, General Transportation
System Bonds, 1990 Series A:
5,000,000 7.000%, 3/01/10 (Pre-refunded to 3/01/00) Aaa 3/00 at 100 5,407,900
3,500,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) Aaa 3/00 at 102 3,913,385
7,710,000 Massachusetts Health and Educational Facilities Authority, Revenue
Bonds, Emerson Hospital Issue Series C, 8.000%, 7/01/18
(Pre-refunded to 7/01/00) AAA 7/00 at 102 8,730,419
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$13,915,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds,
Capital Asset Program Issue, Series F, 7.300%, 10/01/18 Aaa 4/00 at 102 $ 15,288,411
2,480,000 Massachusetts Housing Finance Agency, Residential Housing Revenue
Bonds, 1988 Series B, 8.100%, 8/01/23 (Alternative Minimum Tax) BBB+ 8/99 at 102 2,604,298
10,300,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue
Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15 N/R 7/01 at 103 11,482,337
Massachusetts Water Resources Authority, General Revenue Bonds, 1990
Series A:
8,770,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 9,823,452
11,535,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 12,875,252
1,000,000 City of Boston, Massachusetts, General Obligation Bonds, 1990 Series A,
7.375%, 2/01/10 (Pre-refunded to 2/01/00) A+ 2/00 at 102 1,107,250
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN 0.9%
100,000 Michigan State Hospital Finance Authority, Hospital Revenue and
Refunding Bonds (Sisters of Mercy Health Corporation), Series E,
10.500%, 7/01/14 A 1/97 at 100 100,447
The Economic Development Corporation of the City of Lapeer, Limited
Obligation Revenue Bonds (Lapeer Health Services Corporation
Project), Series 1990:
2,915,000 8.250%, 2/01/04 (Pre-refunded to 2/01/00) BBB 2/00 at 102 3,278,326
3,000,000 8.500%, 2/01/12 (Pre-refunded to 2/01/00) BBB 2/00 at 102 3,416,520
2,000,000 8.625%, 2/01/20 (Pre-refunded to 2/01/00) BBB 2/00 at 102 2,271,400
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.4%
8,415,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds,
1990 Series A, 7.950%, 7/01/22 (Alternative Minimum Tax) AA+ 7/00 at 102 8,911,148
Minneapolis/Saint Paul Housing Finance Board, Single Family Mortgage
Revenue Bonds (Minneapolis/Saint Paul Family Housing Program,
Phase VIII), Series 1990A:
840,000 7.750%, 8/01/10 (Alternative Minimum Tax) AAA 2/00 at 102 885,226
4,560,000 8.000%, 2/01/23 (Alternative Minimum Tax) AAA 2/00 at 102 4,819,874
3,455,000 Minneapolis Community Development Agency, Limited Tax Supported
Development Revenue Bonds, Common Bond Fund Series 1988-1,
8.750%, 12/01/17 (Alternative Minimum Tax) BBB+ 12/98 at 102 3,768,645
2,130,000 Minneapolis Community Development Agency, Limited Tax Supported
Development Revenue Bonds, Common Bond Fund Series 1988-3,
8.500%, 12/01/08 (Alternative Minimum Tax) BBB+ 12/98 at 102 2,294,330
2,520,000 Minneapolis Community Development Agency, Limited Tax Supported
Development Revenue Bonds, Common Bond Fund Series 1989-1,
8.250%, 6/01/19 (Alternative Minimum Tax) BBB+ 12/99 at 102 2,692,418
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.6%
5,425,000 Coahoma-Clarksdale Housing Development Corporation, 1990
Multifamily Mortgage Revenue Refunding Bonds (Gooden Estates and
McLaurin Arms Projects), Series A and B, 8.000%, 8/01/24 AAA 8/03 at 100 5,912,491
2,715,000 Greenwood-Leflore Housing Development Corporation, 1990
Multifamily Mortgage Revenue Refunding Bonds (Jones Apartment
Projects), Series C, 7.950%, 8/01/22 AA- 6/02 at 100 2,842,442
1,630,000 Greenwood-Leflore Housing Development Corporation, 1990
Multifamily Mortgage Revenue Refunding Bonds (Ivory Apartment
Project), Series D, 7.950%, 2/01/22 AA- 2/01 at 100 1,706,463
1,715,000 Greenwood-Leflore Housing Development Corporation, 1990
Multifamily Mortgage Revenue Refunding Bonds (McNeace Apartment
Projects), Series A, 7.950%, 8/01/22 AA- 3/02 at 100 1,792,415
2,670,000 Greenwood-Leflore Housing Development Corporation, 1990
Multifamily Mortgage Revenue Refunding Bonds (Bishop Apartment
Project), Series B, 7.950%, 8/01/22 AA- 8/01 at 100 2,807,879
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MISSOURI - 0.3%
$ 2,500,000 Health and Educational Facilities Authority of the State of Missouri,
Health Facilities Revenue Bonds (SSM Health Care Projects), Series
1988A, 7.750%, 6/01/16 (Pre-refunded to 6/01/98) Aaa 6/98 at 102 $ 2,687,850
- ------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 1.7%
15,800,000 Montana Board of Housing, Single Family Program Bonds, 1995 Series B
(Federally Insured or Guaranteed Mortgage Loan), 6.400%, 12/01/27
(Alternative Minimum Tax) AA+ 12/05 at 102 16,100,358
- ------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.8%
3,180,000 Business Finance Authority of the State of New Hampshire, Water Facility
Revenue Bonds (Pennichuck Water Works, Inc.-1994 Issue), Series A,
6.350%, 12/01/19 Aaa 12/04 at 102 3,379,227
2,020,000 Business Finance Authority of the State of New Hampshire, Water Facility
Revenue Bonds (Pennichuck Water Works, Inc.-Series B),
6.450%, 12/01/16 (Alternative Minimum Tax) Aaa 12/04 at 102 2,176,005
4,555,000 New Hampshire Housing Finance Authority, Single Family Residential
Mortgage Bonds, 1990 Series A, 7.950%, 7/01/22 (Alternative
Minimum Tax) Aa 7/00 at 102 4,806,026
6,275,000 New Hampshire Housing Finance Authority, Single Family Residential
Mortgage Bonds, 1989 Series A, 7.900%, 7/01/22 (Alternative
Minimum Tax) Aa 7/99 at 102 6,617,741
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.8%
1,000,000 New Jersey Housing and Mortgage Finance Agency, Relating to Its Home
Buyer Revenue Bonds, 1993 Series G, 5.350%, 10/01/15 Aaa 10/03 at 102 965,360
6,000,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991 C,
6.500%, 1/01/16 Aaa No Opt. Call 6,762,180
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 14.3%
4,605,000 Dormitory Authority of the State of New York, United Health Services, Inc.,
FHA-Insured Mortgage Revenue Bonds, Series 1989, 7.350%, 8/01/29 AAA 2/00 at 102 4,967,091
26,000,000 Dormitory Authority of the State of New York, City University System
Consolidated Revenue Bonds, Series 1990A, 7.625%, 7/01/20
(Pre-refunded to 7/01/00) Aaa 7/00 at 102 29,284,840
Dormitory Authority of the State of New York, State University
Educational Facilities, Revenue Bonds, Series 1990A:
19,965,000 7.700%, 5/15/12 (Pre-refunded to 5/15/00) Aaa 5/00 at 102 22,468,811
7,250,000 6.500%, 5/15/19 (Pre-refunded to 5/15/00) AAA 5/00 at 100 7,754,745
New York State Housing Finance Agency, Health Facilities
Revenue Bonds (New York City), 1990 Series A Refunding:
18,815,000 8.000%, 11/01/08 (Pre-refunded to 11/01/00) Aaa 11/00 at 102 21,579,676
3,885,000 8.000%, 11/01/08 BBB+ 11/00 at 102 4,350,812
8,500,000 New York State Medical Care Facilities Finance Agency, Hospital and
Nursing Home FHA-Insured Mortgage Revenue Bonds, 1988 Series C,
7.600%, 2/15/08 (Pre-refunded to 8/15/98) AAA 8/98 at 102 9,164,530
20,000,000 New York State Medical Care Facilities Finance Agency, Hospital Insured
Mortgage Revenue Bonds, 1987 Series A Refunding, 8.000%, 2/15/25
(Pre-refunded to 8/15/97) Aaa 8/97 at 102 21,031,400
5,000,000 New York State Medical Care Facilities Finance Agency, St. Luke's-Roosevelt
Hospital Center FHA-Insured Mortgage Revenue Bonds, 1989 Series B,
7.450%, 2/15/29 (Pre-refunded to 2/15/00) Aaa 2/00 at 102 5,550,350
8,000,000 The City of New York, General Obligation Bonds, Fiscal 1991 Series B,
9.500%, 6/01/03 Baa1 No Opt. Call 9,736,960
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NORTH CAROLINA - 1.4%
13,500,000 North Carolina Eastern Municipal Power Agency, Power System Revenue
Bonds, Refunding Series 1993 B, 5.500%, 1/01/17 Aaa 1/03 at 100 13,122,540
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NORTH DAKOTA - 0.2%
$ 2,230,000 State of North Dakota (North Dakota Housing Finance Agency), Single
Family Mortgage Program Bonds, 1986 Series A, 8.375%, 7/01/19
(Alternative Minimum Tax) Aa 7/98 at 103 $ 2,345,046
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.9%
15,080,000 Ohio Air Quality Development Authority, State of Ohio, Collateralized
Pollution Control Revenue Refunding Bonds, Series 1992 (The
Cleveland Electric Illuminating Company Project), 8.000%, 12/01/13 Aaa 6/02 at 103 17,802,091
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.7%
1,570,000 Cleveland County Home Loan Authority (Oklahoma), Single Family
Mortgage Revenue Refunding Bonds, Series 1992, 8.375%, 2/01/12 A1 8/01 at 102 1,698,112
13,570,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, Series 1991,
7.600%, 12/01/30 (Alternative Minimum Tax) Baa2 6/01 at 102 14,617,875
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.0%
3,500,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding Bonds,
Issue 1993, 5.800%, 7/01/18 Aaa 7/03 at 102 3,518,620
2,300,000 Delaware River Port Authority, Revenue Bonds, Series of 1995,
5.400%, 1/01/16 Aaa 1/06 at 102 2,252,781
8,500,000 City of Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds,
Series 1993, 5.000%, 6/15/16 Aaa 6/03 at 100 7,835,045
4,745,000 Venango Housing Corporation, Multifamily Mortgage Revenue Refunding
Bonds (FHA-Insured Mortgage/Evergreen Arbors Project), 1990 Series A,
8.000%, 2/01/24 AAA 12/03 at 100 5,105,098
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.3%
6,745,000 Rhode Island Housing and Mortgage Finance Corporation,
Homeownership Opportunity Bonds, Series 2, 7.750%, 4/01/22 AA+ 4/00 at 102 7,133,849
4,140,000 Rhode Island Housing and Mortgage Finance Corporation, Series 3-B
Bonds, 8.050%, 4/01/22 (Alternative Minimum Tax) AA+ 10/00 at 102 4,357,681
6,000,000 Rhode Island Convention Center Authority, Refunding Revenue Bonds,
1993 Series C, 5.000%, 5/15/23 Aaa 5/04 at 102 5,394,840
The Housing Authority of the City of Providence, Rhode Island,
Multifamily Mortgage Revenue Bonds (FHA Insured Mortgage
Loan- Cathedral Square Apartments IIProject), 1992
Series:
435,000 7.375%, 4/01/10 (Alternative MinimumTax) AAA 4/02 at 105 472,023
1,060,000 7.400%, 4/01/20 (Alternative MinimumTax) AAA 4/02 at 105 1,143,793
3,050,000 7.500%, 10/01/32 (Alternative Minimum Tax) AAA 4/02 at 105 3,289,974
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.6%
5,000,000 South Carolina Public Service Authority, Revenue Bonds, 1993 Refunding
Series C, 5.000%, 1/01/25 Aaa 1/03 at 102 4,482,750
3,500,000 Charleston County, South Carolina, Resource Recovery Revenue Bonds
(Foster Wheeler Charleston Resource Recovery, Inc. Project),
Series 1987 A, 9.000%, 1/01/05 (Alternative Minimum Tax) A 1/98 at 103 3,742,375
17,890,000 Piedmont Municipal Power Agency (South Carolina), Electric Revenue
Bonds, 1986 Refunding Series A, 7.250%, 1/01/22 Baa1 1/97 at 101 1/2 18,259,250
7,250,000 Piedmont Municipal Power Agency (South Carolina), Electric Revenue
Bonds, 1988 Refunding Series A, 7.000%, 1/01/19 Aaa 1/98 at 100 7,466,920
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4%
3,500,000 Tennessee Housing Development Agency, Mortgage Finance Program
Bonds, 1994 Series A, 6.900%, 7/01/25 (Alternative MinimumTax) A1 7/04 at 102 3,673,145
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.9%
8,000,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue
Bonds (Texas Utilities Electric Company Project), Series 1990A,
8.125%, 2/01/20 (Alternative Minimum Tax) BBB+ 2/00 at 102 8,781,680
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 5,450,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue
Bonds (Texas Utilities Electric Company Project), Series 1987A,
9.875%, 10/01/17 (Alternative Minimum Tax) BBB+ 10/97 at 102 $ 5,797,819
5,870,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue
Bonds (Texas Utilities Electric Company Project), Series 1989A,
8.250%, 1/01/19 (Alternative MinimumTax) BBB+ 1/99 at 102 6,333,613
4,925,000 The Cameron County Housing Finance Corporation, Single Family
Mortgage Revenue Refunding Bonds (GNMA and FNMA Mortgage-
Backed Securities Program), Series 1992, 6.750%, 3/01/26 AAA 9/02 at 103 5,164,552
3,000,000 El Paso Housing Finance Corporation, Multifamily Housing Revenue
Refunding Bonds (Las Flores Development Company Project), Series
1990A, 7.500%, 3/20/25 AAA 1/00 at 103 3,176,370
6,000,000 Harris County, Texas, Health Facilities Development Corporation, Special
Facilities Revenue Bonds (Texas Medical Center Project), Series 1990,
7.375%, 5/15/20 Aaa 5/00 at 102 6,674,460
10,000,000 Harris County Health Facilities Development Corporation, Special
Facilities Revenue Bonds (Texas Medical Center Project), Series 1996,
5.900%, 5/15/16 Aaa 5/06 at 102 10,162,900
City of Houston, Texas Water Conveyance System Contract, Certificates of
Participation, Series 1993 A-J:
5,490,000 6.800%, 12/15/10 Aaa No Opt. Call 6,274,466
2,000,000 6.800%, 12/15/11 Aaa No Opt. Call 2,287,820
7,500,000 Sabine River Authority of Texas (Texas Utilities Electric Company Project),
Series 1990A, 8.125%, 2/01/20 (Alternative Minimum Tax) BBB+ 2/00 at 102 8,232,825
The Wood GlenHousing Finance Corporation, Mortgage Revenue
Refunding Bonds, Series 1990C (FHA Insured Mortgage
Loan-Section 8 Assisted Copperwood IIProject):
1,775,000 7.625%, 1/01/10 Aaa 1/00 at 103 1,896,748
1,250,000 7.650%, 7/01/23 Aaa 1/00 at 103 1,328,050
- ------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.2%
725,000 Utah Housing Finance Agency, Single Family Mortgage Senior Bonds,
1989 Issue B (Federally Insured or Guaranteed Mortgage Loans),
8.250%, 7/01/21 (Alternative Minimum Tax) AA 7/99 at 102 746,591
6,465,000 Intermountain Power Agency (Utah), Power Supply Revenue Bonds, Series
1987B, 7.200%, 7/01/19 Aa 7/97 at 102 6,717,523
4,000,000 Intermountain Power Agency, Power Supply Revenue Refunding Bonds,
1996 Series D, 5.000%, 7/01/23 Aa 7/06 at 102 3,595,520
- ------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.8%
8,130,000 Capital Region Airport Commission, Richmond (Virginia), International
Airport Projects, Airport Revenue Bonds, Series 1995A, 5.625%, 7/01/20 Aaa 7/05 at 102 8,087,155
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.4%
7,195,000 State of Washington, Various Purpose General Obligation Bonds, Series
1991A, 6.000%, 3/01/16 Aa 3/01 at 100 7,272,058
3,000,000 Washington Public Power Supply System, Nuclear Project No. 1
Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/13 Aa1 7/03 at 102 2,947,710
11,135,000 Washington Public Power Supply System, Nuclear Project No. 1
Refunding Revenue Bonds, Series 1989B, 7.250%, 7/01/15
(Pre-refunded to 1/01/00) Aaa 1/00 at 102 12,268,431
Washington Public Power Supply System, Nuclear Project No. 1,
Refunding Revenue Bonds, Series 1989A:
5,520,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 6,063,830
3,595,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) Aa1 7/99 at 102 3,952,990
21,700,000 Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1990A, 7.375%, 7/01/12
(Pre-refunded to 7/01/00) AAA 7/00 at 102 24,173,582
11,340,000 Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1994 A, 5.000%, 7/01/09 Aaa 7/04 at 102 10,777,081
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 6,615,000 Washington Public Power Supply System, Nuclear Project No. 3
Refunding Revenue Bonds, Series 1989A, 7.250%, 7/01/16
(Pre-refunded to 7/01/99) Aaa 7/99 at 102 $ 7,225,431
5,000,000 Everett School District No. 2, Snohomish County, Washington, Unlimited
Tax General Obligation Bonds, Series 1993, 6.200%, 12/01/12 Aaa 12/03 at 102 5,296,800
- ------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.3%
2,580,000 West Virginia Housing Development Fund, Housing Finance Bonds, 1990
Series A, 7.950%, 5/01/17 (Alternative Minimum Tax) Aa1 11/00 at 102 2,721,048
- ------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.3%
11,835,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Series 1990 (Franciscan Health System, Inc. Project), 8.500%, 3/01/20
(Pre-refunded to 3/01/00) Aaa 3/00 at 102 13,528,943
Wisconsin Health and Educational Facilities Authority, Revenue Bonds,
Series 1996 (Aurora Medical Group, Inc. Project):
10,000,000 5.600%, 11/15/16 Aaa 5/06 at 102 9,840,100
15,000,000 5.750%, 11/15/25 Aaa 5/06 at 102 14,863,650
3,000,000 Housing Authority of the City of Milwaukee, Wisconsin, Multifamily
Housing Refunding Revenue Bonds, Series 1990 (FHA Insured
Mortgage Loan-The Blatz Apartments Project), 7.500%, 12/01/28 Aa 6/00 at 102 3,144,060
- ------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.3%
3,000,000 Uinta County School District Number 1, State of Wyoming, General
Obligation Refunding Bonds, Series 1987B, 8.625%, 6/01/08
(Pre-refunded to 6/01/97) N/R 6/97 at 103 3,170,850
- ------------------------------------------------------------------------------------------------------------------------------------
$873,075,000 Total Investments - (cost $867,139,520) - 98.0% 932,653,313
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 19,002,207
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $951,655,520
====================================================================================================================================
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 66 $539,963,526 58%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 26 147,808,589 16
PORTFOLIO OF A+ A1 5 35,335,007 4
INVESTMENTS: A, A- A, A2, A3 9 44,391,091 5
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 18 132,838,233 14
Non-rated Non-rated 4 32,316,867 3
- ----------------------------------------------------------------------------------------------------------------------
TOTAL 128 $932,653,313 100%
======================================================================================================================
<FN>
* Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates. (p) Rating is provisional. Aprovisional 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC. (NMO)
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 1.6%
$ 3,980,000 Alaska Housing Finance Corporation, Insured Mortgage Program Bonds,
1990 First Series, 7.800%, 12/01/30 Aa1 12/00 at 102 $ 4,049,292
12,000,000 Alaska State Housing Finance Corporation, Governmental Purpose Bonds,
1995 Series A, 5.875%, 12/01/30 Aaa 12/05 at 102 11,955,480
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.2%
2,265,000 Arkansas Development Finance Authority, Single Family Mortgage
Revenue Refunding Bonds, 1991 Series A (FHA Insured or VA
Guaranteed Mortgage Loans), 8.000%, 8/15/11 AA 8/01 at 103 2,446,834
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 9.9%
6,500,000 California Health Facilities Financing Authority, Insured Revenue Bonds
(Episcopal Homes Foundation Project), Series 1985B, 7.850%, 7/01/15 A 1/97 at 101 1/2 6,635,330
4,000,000 California Health Facilities Financing Authority, Insured Health Facilities
Revenue Bonds (ValleyCare Hospital Corporation), 1989 Series A,
7.000%, 5/01/20 A 5/00 at 102 4,274,000
7,300,000 California Health Facilities Financing Authority, Insured Hospital Revenue
Bonds (Children's Hospital-San Diego), Series 1990, 6.500%, 7/01/20 Aaa 7/00 at 102 7,972,914
6,810,000 California Health Facilities Financing Authority, Kaiser Permanente,
Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 AA 5/03 at 102 6,490,543
10,000,000 Certificates of Participation (1991 Financing Project), County of Alameda,
California, Alameda County Public Facilities Corporation,
6.000%, 9/01/21 Aaa 9/06 at 102 10,317,400
8,745,000 Bell Community Redevelopment Agency, Bell Redevelopment Area 1994
Tax Allocation Refunding Bonds, 6.350%, 11/01/23 Aaa 11/03 at 102 9,270,312
5,000,000 The Community Redevelopment Agency of the City of Los Angeles,
California, Central Business District Redevelopment Project Tax
Allocation Refunding Bonds, Series G, 6.750%, 7/01/10 BBB 7/97 at 102 5,105,500
12,080,000 Department of Water and Power of The City of Los Angeles, California,
Electric Plant Revenue Bonds, Issue of 1994, 5.375%, 2/15/34 Aa 2/04 at 102 11,169,410
Department of Water and Power of The City of Los Angeles (California),
Electric Plant Revenue Bonds, Second Issue of 1993:
6,000,000 4.750%, 10/15/20 Aa 10/03 at 102 5,158,560
6,815,000 5.400%, 11/15/31 Aa 11/03 at 102 6,326,773
6,000,000 Department of Water and Power of The City of Los Angeles, Water Works
Refunding Revenue Bonds, Issue of 1992, 6.400%, 5/15/28 Aa 5/01 at 102 6,286,980
County of Orange, California, 1996 Recovery Certificates of Participation,
Series A:
13,000,000 5.875%, 7/01/19 Aaa 7/06 at 102 13,136,630
1,450,000 6.000%, 7/01/26 Aaa 7/06 at 102 1,490,919
5,870,000 Sacramento Municipal Utility District (California), Electric Revenue
Refunding Bonds, 1993 Series G, 4.750%, 9/01/21 Aaa 9/03 at 100 5,088,057
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.7%
3,865,000 Colorado Housing and Finance Authority, Single-Family Program Senior
Bonds, 1990 Issue C (Federally Insured or Guaranteed Mortgage Loans),
7.650%, 8/01/22 (Alternative Minimum Tax) AA 8/00 at 102 4,048,665
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C:
1,200,000 5.950%, 11/15/98 (Alternative MinimumTax) Baa No Opt. Call 1,234,920
7,625,000 6.750%, 11/15/22 (Alternative Minimum Tax) Baa 11/02 at 102 7,909,031
12,250,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A, 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 13,750,135
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D:
4,700,000 7.400%, 11/15/01 (Alternative Minimum Tax) Baa No Opt. Call 5,172,726
5,000,000 7.750%, 11/15/21 (Alternative Minimum Tax) Baa 11/01 at 102 5,540,700
5,000,000 7.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 5,251,000
3,500,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B, 7.250%, 11/15/23 (Alternative Minimum Tax) Baa 11/02 at 102 3,772,370
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
DISTRICT OF COLUMBIA - 0.2%
$ 2,105,000 District of Columbia Housing Finance Agency, Collateralized Single
Family Mortgage Revenue Bonds, Series 1990A, 8.100%, 12/01/23
(Alternative Minimum Tax) AAA 12/00 at 102 $ 2,221,975
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.3%
Orange County Housing Finance Authority, GNMA
Collateralized Mortgage Revenue Refunding Bonds, 1990
Series A:
4,820,000 7.500%, 7/01/10 Aaa 7/00 at 103 5,124,576
11,035,000 7.600%, 1/01/24 Aaa 7/00 at 103 11,734,288
10,790,000 Palm Beach County Health Facilities Authority, Hospital Revenue
Refunding Bonds, Series 1988 (JFK Medical Center, Inc. Projects),
8.875%, 12/01/18 (Pre-refunded to 12/01/98) N/R 12/98 at 102 11,942,695
3,795,000 Housing Finance Authority of Palm Beach County, Florida, Single Family
Mortgage Revenue Bonds, 1990 Series B, 7.600%, 3/01/23 Aaa 9/00 at 103 4,031,239
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.2%
17,000,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series O,
7.900%, 1/01/08 A 1/98 at 102 18,092,590
4,000,000 Housing Authority of the City of Athens, Multi-Family Housing Revenue
Bonds, Series 1985 (Oakwood Forest Apartments Project),
8.125%, 12/01/05 (Mandatory put 12/01/97) Baa1 No Opt. Call 4,087,120
- ------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 7.1%
15,000,000 Illinois Development Finance Authority, Revenue and Refunding Bonds,
Series 1990A (Columbus-Cuneo-Cabrini Medical Center),
8.500%, 2/01/15 (Pre-refunded to 2/01/00) Baa 2/00 at 102 17,048,400
5,210,000 Illinois Housing Development Authority, Section 8 Elderly Housing
Revenue Bonds (Garden House of River Oaks West Development),
Series 1992A, 6.875%, 1/01/20 A 1/03 at 102 5,428,716
2,135,000 Illinois Housing Development Authority, Section 8 Elderly Housing
Revenue Bonds (Village Center Development), Series 1992C,
6.600%, 3/01/07 A 3/03 at 102 2,256,503
6,500,000 City of Chicago, Illinois, Gas Supply Refunding Revenue Bonds, 1995
Series A (The Peoples Gas Light & Coke Company Project),
6.100%, 6/01/25 AA- 6/05 at 102 6,707,740
21,725,000 City of Chicago, Chicago-O'Hare International Airport, International
Terminal Special Revenue Bonds, Series 1990A, 7.500%, 1/01/17
(Alternative Minimum Tax) A 1/00 at 102 23,497,326
7,300,000 City of Chicago, Chicago-O'Hare International Airport, Special Facility
Revenue Bonds (American Airlines, Inc. Project), Series 1990A,
7.875%, 11/01/25 (Alternative Minimum Tax) Baa2 11/00 at 102 7,870,495
4,000,000 Community College District No. 508, Cook County, Illinois, Certificates
of Participation, 8.750%, 1/01/06 Aaa No Opt. Call 5,034,520
2,790,000 City of Peoria, Peoria County, Illinois, City of Pekin, Tazewell and Peoria
Counties, Illinois, and City of Waukegan, Lake County, Illinois, Jointly,
GNMA Collateralized Mortgage Revenue Bonds, Series 1990,
7.875%, 8/01/02 (Alternative Minimum Tax) AAA 8/00 at 103 2,940,521
- ------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.8%
13,500,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds,
Series 1990 (Bartholomew County Hospital District), 7.750%, 8/15/20 Aaa 8/00 at 103 15,277,410
3,710,000 Indiana Housing Finance Authority, Single Family Mortgage Revenue
Bonds (GNMA Collateralized Home Mortgage Program), 1990
Series D, 7.800%, 1/01/22 (Alternative Minimum Tax) Aaa 7/00 at 102 3,818,109
10,000,000 Indiana State Office Building Commission, Capitol Complex Revenue
Bonds, Series 1990B (State Office Building I Facility), 7.250%, 7/01/12
(Pre-refunded to 7/01/00) Aaa 7/00 at 102 11,130,400
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
INDIANA (CONTINUED)
The Indianapolis Local Public Improvement Bond Bank, Series
1992 D Bonds:
$ 3,750,000 6.750%, 2/01/20 A+ 2/03 at 102 $ 4,051,200
8,000,000 6.500%, 2/01/22 A+ 2/98 at 100 8,108,480
5,000,000 Columbus Multi-School Building Corporation, Bartholomew County,
Indiana, First Mortgage Bonds, 7.600%, 1/15/14 (Pre-refunded
to 1/15/01) N/R 1/01 at 102 5,648,700
10,080,000 The Trustees of Purdue University, Purdue University Student Fee Bonds,
Series M, 6.100%, 7/01/17 Aa 7/06 at 102 10,304,986
- ------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.2%
2,170,000 Kentucky Housing Corporation, Housing Revenue Bonds (FHA Insured/
VAGuaranteed), 1990 Series C Bonds, 8.100%, 1/01/22 (Alternative
Minimum Tax) Aaa 7/00 at 102 2,291,672
- ------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.6%
5,410,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series
1990A, 7.875%, 8/01/23 (Alternative Minimum Tax) Aaa 8/00 at 102 5,714,854
- ------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.3%
2,500,000 Maine State Housing Authority, Single-Family Mortgage Acquisition
Bonds, 1991 Series 1, 7.150%, 11/01/21 Aa1 11/01 at 192 2,600,625
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.5%
4,470,000 Community Development Administration, Department of Housing and
Community Development, State of Maryland, Single Family Program
Bonds, 1990 Fifth Series, 7.700%, 4/01/15 (Alternative Minimum Tax) Aa 4/00 at 102 4,663,953
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 7.9%
Massachusetts Bay Transportation Authority, General Transportation
System Bonds, 1990 Series A:
7,500,000 7.000%, 3/01/10 (Pre-refunded to 3/01/00) Aaa 3/00 at 100 8,111,850
10,800,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) Aaa 3/00 at 102 12,075,588
Massachusetts Health and Educational Facilities Authority, Revenue
Bonds, Daughters of Charity National Health System-Carney Hospital
Issue, Series C:
4,200,000 7.500%, 7/01/05 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 4,703,916
10,800,000 7.750%, 7/01/14 Aaa 7/00 at 102 12,186,180
5,900,000 Massachusetts Health and Educational Facilities Authority, Revenue
Bonds, New England Medical Center Hospitals Issue, Series F,
6.625%, 7/01/25 Aaa 7/02 at 102 6,394,243
Massachusetts Health and Educational Facilities Authority, Revenue
Bonds, Goddard Memorial Hospital Issue, Series B:
3,090,000 9.000%, 7/01/15 (Pre-refunded to 7/01/00) Baa 7/00 at 102 3,601,055
4,975,000 9.000%, 7/01/15 Baa 7/00 at 102 5,512,748
3,385,000 Massachusetts Housing Finance Agency, Residential Housing Revenue
Bonds, 1989 Series A, 8.200%, 8/01/27 (Alternative Minimum Tax) BBB+ 8/99 at 102 3,574,391
Massachusetts Water Resources Authority, General Revenue Bonds,
1990 Series A:
8,450,000 7.625%, 4/01/14 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 9,465,014
6,615,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 7,383,597
5,195,000 7.000%, 4/01/18 Aaa 4/00 at 102 5,716,994
- ------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.3%
8,500,000 Michigan State Hospital Finance Authority, Hospital Revenue and
Refunding Bonds (Bay Medical Center), Series 1990A, 8.250%, 7/01/12 Baa1 7/00 at 102 9,111,065
4,500,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (The
Detroit Medical Center Obligated Group), Series 1991A,
7.500%, 8/15/11 A 8/01 at 102 4,934,295
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MICHIGAN (CONTINUED)
$ 8,500,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (Waste
Management, Inc. Project), Series 1992, 6.625%, 12/01/12 (Alternative
Minimum Tax) A1 12/02 at 102 $ 9,179,235
- ------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.4%
3,625,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds,
1990 Series A, 7.950%, 7/01/22 (Alternative Minimum Tax) AA+ 7/00 at 102 3,838,730
2,585,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds,
1990 Series C, 7.700%, 7/01/14 AA+ 7/00 at 102 2,735,731
2,965,000 The Dakota County Housing and Redevelopment Authority, The
Washington County Housing and Redevelopment Authority and The
Stearns County Housing and Redevelopment Authority, Single Family
Residential Mortgage Revenue Bonds (GNMA), Series 1990,
7.850%, 12/01/30 (Alternative Minimum Tax) AAA 12/00 at 102 3,119,477
8,845,000 City of Minneapolis, Minnesota and The Housing and Redevelopment
Authority of The City of Saint Paul, Minnesota, Health Care System
Revenue Bonds (Health One Obligated Group), Series 1990C,
8.000%, 8/15/19 (Pre-refunded to 8/15/00) Aaa 8/00 at 102 10,082,592
3,825,000 The Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota, Sales Tax Revenue Refunding Bonds (Civic Center Project),
Series 1996, 7.100%, 11/01/23 Aaa 11/15 at 103 4,561,848
- ------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.1%
1,240,000 Mississippi Home Corporation, Single Family Senior Revenue Refunding
Bonds, Series 1990A, 9.250%, 3/01/12 Aaa 9/00 at 103 1,339,014
- ------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.6%
Nevada Housing Division, Single Family Program Senior
Bonds, 1990 Issue B (Federally Insured or Guaranteed
Mortgage Loans):
2,620,000 7.850%, 10/01/10 (Alternative Minimum Tax) AA 4/00 at 102 2,752,755
2,260,000 7.900%, 4/01/22 (Alternative Minimum Tax) AA 4/00 at 102 2,377,497
6,000,000 State of Nevada, General Obligation (Limited Tax), Bonds (Nevada
Municipal Bond Bank Project No. 52), Series July 1, 1996A,
6.000%, 5/15/21 Aa 5/06 at 101 6,095,820
4,315,000 Airport Authority of Washoe County, Reno, Nevada, Airport Revenue
Refunding Bonds, Series 1993B, 5.875%, 7/01/11 Aaa 7/03 at 102 4,395,216
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.7%
4,750,000 Pollution Control Financing Authority of Camden County (Camden
County, New Jersey), Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991 C, 7.125%, 12/01/01 (Alternative
Minimum Tax) BBB+ No Opt. Call 4,868,180
2,000,000 Pollution Control Financing Authority of Camden County (Camden
County, New Jersey), Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991 D, 7.250%, 12/01/10 BBB+ 12/01 at 102 2,060,280
- ------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.1%
10,105,000 New Mexico Mortgage Finance Authority, Single Family Mortgage
Program Senior Bonds, 1990 Series A (Federally Insured or Guaranteed
Mortgage Loans), 7.800%, 9/01/17 AA 9/00 at 102 10,655,419
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 23.2%
6,080,000 Dormitory of the State of New York, City University System Consolidated
Second General Resolution Revenue Bonds, Series 1990C,
9.250%, 7/01/99 Baa1 No Opt. Call 6,780,416
15,000,000 Dormitory Authority of the State of New York, City University System
Consolidated Second General Resolution Revenue Bonds, Series 1990D,
8.750%, 7/01/03 Baa1 No Opt. Call 18,000,600
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$10,000,000 Dormitory Authority of the State of New York, State University Educational
Facilities, Revenue Bonds, Series 1989A, 7.125%, 5/15/17 (Pre-refunded
to 5/15/99) AAA 5/99 at 102 $ 10,884,500
9,010,000 Dormitory Authority of the State of New York, State University Educational
Facilities, Revenue Bonds, Series 1989B, 7.250%, 5/15/15 (Pre-refunded
to 5/15/00) Aaa 5/00 at 102 10,008,308
4,500,000 New York State Energy Research and Development Authority, Gas
Facilities Revenue Bonds, Series C (The Brooklyn Union Gas Company
Project), 5.600%, 6/01/25 (Alternative Minimum Tax) Aaa 7/03 at 102 4,365,675
New York State Housing Finance Agency, Health Facilities Revenue Bonds
(New York City), 1990 Series ARefunding:
16,580,000 8.000%, 11/01/08 (Pre-refunded to 11/01/00) Aaa 11/00 at 102 19,016,265
3,420,000 8.000%, 11/01/08 BBB+ 11/00 at 102 3,830,058
10,325,000 New York State Medical Care Facilities Finance Agency, Hospital and
Nursing Home Insured Mortgage Revenue Bonds, 1987 Series A,
8.000%, 2/15/27 (Pre-refunded to 8/15/97) Aa 8/97 at 102 10,802,325
9,860,000 New York State Medical Care Facilities Finance Agency, Albany Medical
Center Hospital Project Revenue Bonds, 1987 Series A, 8.000%, 2/15/28 AAA 8/98 at 102 10,598,613
7,200,000 New York State Medical Care Facilities Finance Agency, Hospital and
Nursing Home FHA-Insured Mortgage Revenue Bonds, 1988 Series C,
7.700%, 2/15/22 (Pre-refunded to 8/15/98) AAA 8/98 at 102 7,775,208
New York State Medical Care Facilities Finance Agency,
Hospital Insured Mortgage Revenue Bonds, 1987 Series
ARefunding:
3,620,000 7.250%, 2/15/12 Aa 8/97 at 102 3,767,443
16,520,000 8.000%, 2/15/25 (Pre-refunded to 8/15/97) Aaa 8/97 at 102 17,371,936
5,000,000 New York State Medical Care Facilities Finance Agency Health Center
Projects Revenue Bonds (Secured Mortgage Program), 1995 Series A,
6.375%, 11/15/19 Aa 11/05 at 102 5,254,750
5,000,000 New York State Medical Care Facilities Finance Agency, Brookdale
Hospital Medical Center Secured Hospital Revenue Bonds, 1995
Series A, 6.850%, 2/15/17 Baa 2/05 at 102 5,232,250
7,150,000 New York State Thruway Authority, General Revenue Bonds, Series C,
6.000%, 1/01/25 Aaa 1/05 at 102 7,338,117
10,000,000 Municipal Assistance Corporation for the City of New York (APublic
Benefit Corporation of the State of New York), Series 61 Bonds,
6.875%, 7/01/07 Aa 7/97 at 102 10,385,700
5,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series B,
7.250%, 8/15/07 Baa1 No Opt. Call 5,573,550
5,000,000 The City of New York, General Obligation Bonds, Fiscal 1993 Series C,
6.500%, 8/01/07 Baa1 8/02 at 101 1/2 5,169,750
6,750,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series F,
6.625%, 2/15/25 Baa1 2/05 at 101 6,983,145
10,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series G,
5.750%, 2/01/20 Baa1 2/06 at 101 1/2 9,454,500
21,715,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series I,
5.875%, 3/15/18 Baa1 3/06 at 101 1/2 20,895,910
5,180,000 New York City Municipal Water Finance Authority, Water and Sewer
System Revenue Bonds, Fiscal 1993 Series A, 5.750%, 6/15/18 Aaa 6/02 at 101 1/2 5,176,426
New York City Municipal Water Finance Authority (New York), Water
and Sewer System Revenue Bonds, Fiscal 1991 Series A:
12,875,000 7.500%, 6/15/19 (Pre-refunded to 6/15/00) Aaa 6/00 at 101 1/2 14,378,028
7,585,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) A 6/00 at 100 7,967,360
5,915,000 6.000%, 6/15/20 A 6/00 at 100 5,944,043
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.1%
10,500,000 North Carolina Eastern Municipal Power Agency, Power System Revenue
Bonds, Refunding Series 1991 A, 6.250%, 1/01/03 Baa1 1/02 at 102 10,973,130
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NORTH CAROLINA (CONTINUED)
$ 4,990,000 North Carolina Housing Finance Agency, Single Family Revenue Bonds,
Series-M (1985 Resolution), 7.850%, 9/01/28 (Alternative Minimum Tax) Aa 3/00 at 102 $ 5,239,849
5,000,000 North Carolina Municipal Power Agency Number 1, Catawba Electric
Revenue Bonds, Series 1993, 5.250%, 1/01/09 A No Opt. Call 4,799,850
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.7%
3,225,000 Bryan County Economic Development Authority (Oklahoma), Single
Family Mortgage Revenue Refunding Bonds, Series 1990 A,
8.600%, 7/01/10 Baa1 7/00 at 102 3,415,759
8,000,000 Trustees of the Tulsa Municipal Airport Trust, 1988 Adjustable Rate
Revenue Obligations, 7.375%, 12/01/20 (Alternative Minimum Tax) Baa2 12/00 at 102 8,509,280
5,000,000 Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, Series 1991,
7.600%, 12/01/30 (Alternative Minimum Tax) Baa2 6/01 at 102 5,386,100
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.6%
3,605,000 Allegheny County Residential Finance Authority, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed Securities Program), 1990
Series M, 7.950%, 6/01/23 (Alternative Minimum Tax) Aaa 6/00 at 102 3,808,250
9,000,000 City of Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds,
Series 1993, 10.000%, 6/15/05 Aaa No Opt. Call 12,123,540
- ------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.8%
5,000,000 Rhode Island Health and Educational Building Corporation, Higher
Education Facility Revenue Bonds, Johnson & Wales University (Series
1990), 8.375%, 4/01/20 (Pre-refunded to 4/01/00) AAA 4/00 at 102 5,700,600
11,720,000 Rhode Island Housing and Mortgage Finance Corporation, Homeownership
Opportunity Bonds, Series 2, 7.750%, 4/01/22 AA+ 4/00 at 102 12,395,658
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.4%
3,640,000 South Carolina Jobs-Economic Development Authority, Economic
Development Revenue Bonds (Carolinas Hospital System Project), Series
1992, 7.550%, 9/01/22 (Pre-refunded to 9/01/02) N/R 9/02 at 102 4,232,301
- ------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4%
3,435,000 Tennessee Housing Development Agency, Homeownership Program Bonds,
Issue Q, 7.950%, 7/01/22 (Alternative Minimum Tax) Aa 7/00 at 103 3,609,326
- ------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.9%
4,831,035 General Services Commission (an Agency of the State of Texas), as Lessee,
Participation Interests, 7.500%, 9/01/22 A 9/97 at 102 4,893,983
6,000,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, Series
1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative
Minimum Tax) Baa2 12/00 at 102 6,395,280
Arlington Independent School District (Tarrant County, Texas), Unlimited
Tax Refunding and Improvement Bonds, Series 1995:
12,650,000 0.000%, 2/15/12 Aaa 2/05 at 67 5/16 5,198,265
12,640,000 0.000%, 2/15/13 Aaa 2/05 at 62 15/16 4,829,997
20,500,000 Dallas-Fort Worth International Airport Facility Improvement Corporation,
American Airlines, Inc. Revenue Bonds, Series 1990, 7.500%, 11/01/25
(Alternative Minimum Tax) Baa2 11/00 at 102 21,832,910
4,025,000 El Paso Housing Finance Corporation, Single Family Mortgage Revenue
Refunding Bonds, Series 1991A, 8.750%, 10/01/11 A 4/01 at 103 4,359,276
4,000,000 City of Houston, Texas, Water and Sewer System Prior Lien Revenue Bonds,
Series 1987, 8.125%, 12/01/17 (Pre-refunded to 12/01/97) Aaa 12/97 at 102 4,258,240
15,130,000 Lubbock Health Facilities, Development Corporation, Hospital Revenue
Bonds (Methodist Hospital, Lubbock, Texas), Series 1990,
7.250%, 12/01/19 (Pre-refunded to 12/01/00) Aaa 12/00 at 102 16,806,858
<PAGE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
VIRGINIA - 1.1%
$ 4,000,000 Virginia Housing Development Authority, Commonwealth Mortgage
Revenue Bonds, 1992 Series B Subseries B-4, 6.550%, 1/01/27
(Alternative Minimum Tax) Aa1 1/02 at 102 $ 4,084,200
2,000,000 Virginia Housing Development Authority, Multi-Family Housing Bonds,
1992 Series D, 7.050%, 5/01/18 AA+ 5/02 at 102 2,122,880
4,760,000 Industrial Development Authority of the County of Henrico, Virginia,
Adjustable Rate Revenue Bonds (St. Mary's Hospital Project), Series
1985C, 7.500%, 9/01/07 A+ 8/00 at 102 5,231,097
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.9%
1,080,000 Washington Public Power Supply System, Nuclear Project No. 1 Revenue
Bonds, 14.375%, 7/01/01 Aaa No Opt. Call 1,365,174
5,430,000 Washington Public Power Supply System, Nuclear Project No. 1
Refunding Revenue Bonds, Series 1990A, 7.600%, 7/01/05
(Pre-refunded to 7/01/00) Aa1 7/00 at 102 6,107,555
3,225,000 Washington Public Power Supply System, Nuclear Project No. 1
Refunding Revenue Bonds, Series 1989B, 7.250%, 7/01/15
(Pre-refunded to 1/01/00) Aaa 1/00 at 102 3,553,273
3,030,000 Washington Public Power Supply System, Nuclear Project No. 1,
Refunding Revenue Bonds, Series 1989A, 7.500%, 7/01/15
(Pre-refunded to 7/01/99) Aaa 7/99 at 102 3,328,516
9,775,000 Washington Public Power Supply System, Nuclear Project No. 1
Refunding Revenue Bonds, Series 1991A, 6.875%, 7/01/17
(Pre-refunded to 7/01/01) Aa1 7/01 at 102 10,845,851
Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1990A:
6,835,000 7.625%, 7/01/08 (Pre-refunded to 7/01/00) AAA 7/00 at 102 7,671,262
13,240,000 7.375%, 7/01/12 (Pre-refunded to 7/01/00) AAA 7/00 at 102 14,749,228
8,000,000 Washington Public Power Supply System, Nuclear Project No. 3
Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15 Aa1 7/03 at 102 7,523,600
3,650,000 Washington Public Power Supply System, Nuclear Project No. 3
Refunding Revenue Bonds, Series 1989B, 7.250%, 7/01/15
(Pre-refunded to 1/01/00) Aaa 1/00 at 102 4,021,530
- ------------------------------------------------------------------------------------------------------------------------------------
$932,496,035 Total Investments - (cost $902,663,634) - 97.8% 978,643,798
============------------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 2,500,000 East Baton Rouge Parish (Exxon), Pollution Control Revenue Refunding,
Variable Rate Demand Bonds, 3.600%, 3/01/22+ A-1+ 2,500,000
===========-------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 19,843,376
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,000,987,174
====================================================================================================================================
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 54 $412,414,614 42%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 30 180,849,450 18
PORTFOLIO OF A+ A1 4 26,570,012 3
INVESTMENTS A,A- A, A2, A3 12 93,083,272 10
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 32 243,902,754 25
TEMPORARY Non-rated Non-rated 3 21,823,696 2
INVESTMENTS):
- ----------------------------------------------------------------------------------------------------------------------
TOTAL 135 $978,643,798 100%
======================================================================================================================
<FN>
* Ratings (not covered by the report of independent auditors): Using the higher
of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at
market value (note 1) $1,257,664,654 $932,653,313 $978,643,798
Temporary investments in short-term municipal
securities,
at amortized cost (note 1) 4,500,000 -- 2,500,000
Cash 56,419 1,824,983 88,741
Receivables:
Interest 28,095,599 20,334,116 20,876,443
Investments sold 4,982,506 1,303,544 3,833,470
Other assets 1,514,154 24,521 143,365
-------------- ----------- --------------
Total assets 1,296,813,332 956,140,477 1,006,085,817
-------------- ----------- --------------
LIABILITIES
Accrued expenses:
Management fees (note 6) 673,202 501,506 527,424
Other 449,405 316,874 238,806
Preferred share dividends payable 91,369 67,262 460,494
Common share dividends payable 4,964,680 3,599,315 3,871,919
-------------- ----------- --------------
Total liabilities 6,178,656 4,484,957 5,098,643
-------------- ----------- --------------
Net assets (note 7) $1,290,634,676 $951,655,520 $1,000,987,174
============== ============ ==============
Preferred shares, at liquidation value $ 400,000,000 $300,000,000 $ 300,000,000
============== ============ ==============
Preferred shares outstanding 16,000 12,000 12,000
============== ============ ==============
Common shares outstanding 59,103,336 42,097,246 44,762,071
============== ============ ==============
Netasset value per Common share outstanding (net
assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 15.07 $ 15.48 $ 15.66
============== ============ ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year ended October 31, 1996
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $84,867,627 $61,735,371 $65,781,037
----------- ----------- -----------
Expenses:
Management fees (note 6) 7,941,978 5,922,243 6,238,908
Preferred shares--auction fees 1,038,578 764,590 700,000
Preferred shares--dividend disbursing agent fees 50,355 55,137 35,000
Shareholders' servicing agent fees and expenses 269,220 155,425 178,067
Custodian's fees and expenses 137,545 124,908 127,166
Directors' fees and expenses (note 6) 14,798 7,931 6,458
Professional fees 11,758 12,186 16,362
Shareholders' reports--printing and mailing expenses 297,413 225,593 213,018
Stock exchange listing fees 51,736 46,398 39,600
Investor relations expense 86,706 66,424 71,696
Other expenses 58,705 46,636 47,684
----------- ----------- -----------
Total expenses 9,958,792 7,427,471 7,673,959
----------- ----------- -----------
Net investment income 74,908,835 54,307,900 58,107,078
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) 2,029,380 692,280 (71,985)
Net change in unrealized appreciation or depreciation
of investments (9,136,059) (3,979,682) (4,137,414)
----------- ----------- -----------
Net gain (loss) from investments (7,106,679) (3,287,402) (4,209,399)
----------- ----------- -----------
Net increase in net assets from operations $67,802,156 $51,020,498 $53,897,679
============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NPP NMA
Year ended Year ended Year ended Year ended
10/31/96 10/31/95 10/31/96 10/31/95
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 74,908,835 $ 77,153,445 $ 54,307,900 $ 55,876,222
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) 2,029,380 (1,471,114) 692,280 208,379
Net change in unrealized appreciation or depreciation
of investments (9,136,059) 50,905,804 (3,979,682) 42,497,416
-------------- -------------- ------------ ------------
Net increase in net assets from operations 67,802,156 126,588,135 51,020,498 98,582,017
-------------- -------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (61,281,808) (63,115,341) (44,096,312) (45,761,387)
Preferred shareholders (14,648,674) (16,186,207) (10,731,591) (11,898,209)
-------------- -------------- ------------ ------------
Decrease in net assets from distributions to shareholders (75,930,482) (79,301,548) (54,827,903) (57,659,596)
-------------- -------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 8,959,163 1,880,388 1,185,921 --
-------------- -------------- ------------ ------------
Net increase in net assets derived from capital share
transactions 8,959,163 1,880,388 1,185,921 --
-------------- -------------- ------------ ------------
Net increase (decrease) in net assets 830,837 49,166,975 (2,621,484) 40,922,421
Net assets at beginning of year 1,289,803,839 1,240,636,864 954,277,004 913,354,583
-------------- -------------- ------------ ------------
Net assets at end of year $1,290,634,676 $1,289,803,839 $951,655,520 $954,277,004
============== ============== ============ ============
Balance of undistributed net investment income at end of year $ 1,196,041 $ 2,217,688 $ 1,056,091 $ 1,576,094
============== ============== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
NMO
Year ended Year ended
10/31/96 10/31/95
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 58,107,078 $ 59,429,004
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (71,985) 732,368
Net change in unrealized appreciation or depreciation
of investments (4,137,414) 49,233,857
-------------- --------------
Net increase in net assets from operations 53,897,679 109,395,229
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (46,933,049) (48,745,905)
Preferred shareholders (11,775,782) (12,294,377)
-------------- --------------
Decrease in net assets from distributions to shareholders (58,708,831) (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 (4,811,152) 48,354,947
Net assets at beginning of year 1,005,798,326 957,443,379
-------------- --------------
Net assets at end of year $1,000,987,174 $1,005,798,326
============== ==============
Balance of undistributed net investment income at
end of year $ 1,065,866 $ 1,667,618
============== ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At October 31, 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).
Each Fund invests primarily in a diversified
portfolio of municipal obligations issued by state
and local government authorities. The Funds are
registered under the Investment Company Act of
1940 as closed-end, diversified management
investment companies.
The following is a summary of significant
accounting policies followed by the Funds in the
preparation of their financial statements in
accordance with generally accepted accounting
principles.
Securities Valuation Portfolio securities for which market
quotations are readily available are valued at the
mean between the quoted bid and asked prices or
the yield equivalent. Portfolio securities for
which market quotations are not readily available
are valued at fair value by consistent application
of methods determined in good faith by the Board
of Directors. Temporary investments in securities
that have variable rate and demand features
qualifying them as short-term securities are
traded and valued at amortized cost.
Securities Transactions Securities transactions are recorded on a trade
date basis. Realized gains and losses from such
transactions are determined on the specific
identification method. Securities purchased or sold
on a when-issued or delayed delivery basis may be
settled a month or more after the transaction date.
The securities so purchased are subject to market
fluctuation during this period. The Funds have
instructed the custodian to segregate assets in a
separate account with a current value at least
equal to the amount of their purchase commitments.
At October 31, 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.
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 their tax-exempt net investment
income, in addition to any significant amounts of
net realized capital gains and/or market discount
realized from investment transactions. The Funds
currently consider significant net realized capital
gains and/or market discount as amounts in excess
of $.001 per Common share for NPP and $.01 per
Common share for NMA and NMO. Furthermore, each
Fund intends to satisfy conditions which will
enable interest from municipal securities, which is
exempt from regular federal income tax, to retain
such tax-exempt status when distributed to
shareholders of the Funds. All regular monthly
income dividends paid during the year ended October
31, 1996, have been designated Exempt Interest
Dividends which are exempt from regular federal
personal income tax. Net realized capital gain and
market discount distributions are subject to
federal taxation.
<PAGE>
Dividends and Tax-exempt net investment income is declared as a
Distributions to dividend monthly and payment is made or reinvestment
Shareholders is credited to shareholder accounts after month-end.
Net realized capital gains and/or market discount
from investment transactions are distributed to
shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to
the extent they exceed available capital loss
carryovers.
Distributions to shareholders of tax-exempt net
investment income, net realized capital gains
and/or market discount are recorded on the
ex-dividend date. The amount and timing of 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 occur and will be
classified as either distributions in excess of
net investment income, distributions in excess of
net realized gains and/or distributions in excess
of net ordinary taxable income from investment
transactions, where applicable.
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 NMO Series
T which has lengthened its current dividend period
from seven days to five years. The number of shares
outstanding, by Series and in total, for each of
the Funds were as follows:
<TABLE>
<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
====== ====== ======
</TABLE>
<PAGE>
Derivative Financial In October 1994, the Financial Accounting Standards
Instruments Board (FASB) issued Statement of Financial
Accounting Standards No. 119, Disclosure about
Derivative Financial Instruments and Fair Value of
Financial Instruments, which prescribes disclosure
requirements for transactions in certain derivative
financial instruments including futures, forward,
swap, and option contracts, and other financial
instruments with similar characteristics. Although
the Funds are authorized to invest in such financial
instruments, and may do so in the future, they did
not make any such investments during the year ended
October 31, 1996.
Use of Estimates The preparation of financial statements in
conformity with generally accepted accounting
principles requires management to make estimates
and assumptions that affect the reported amounts
of assets and liabilities at the date of the
financial statements and the reported amounts of
increases and decreases in net assets from
operations during the reporting period.
<PAGE>
2. FUND SHARES
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
NPP NMA
Year ended Year ended Year ended Year ended
10/31/96 10/31/95 10/31/96 10/31/95
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders due to reinvestment of
distributions 586,309 124,648 75,777 --
======= ======= ====== ======
<CAPTION>
NMO
Year ended Year ended
10/31/96 10/31/95
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Shares issued to shareholders due to reinvestment of
distributions -- --
====== ======
</TABLE>
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of
investments in municipal securities and temporary
municipal investments during the year ended
October 31, 1996, were as follows:
<TABLE>
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $200,643,781 $143,291,961 $184,683,833
Temporary municipal investments 165,000,000 122,950,000 74,705,000
SALES AND MATURITIES
Investments in municipal securities 186,487,814 121,759,213 188,289,433
Temporary municipal investments 169,100,000 129,150,000 73,505,000
============ ============ ============
</TABLE>
At October 31, 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.
<PAGE>
At October 31, 1996, 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:
<TABLE>
<CAPTION>
NPP NMA NMO
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Expiration year:
2001 $5,432,752 $1,784,239 $--
2002 -- 501,699 202,503
2003 1,471,114 -- --
2004 -- -- 64,791
---------- ---------- --------
Total $6,903,866 $2,285,938 $267,294
========== ========== ========
</TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On November 1, 1996, the Funds declared Common
share dividend distributions from their tax-exempt
net investment income which were paid December 2,
1996, to shareholders of record on November 15,
1996, as follows:
<TABLE>
<CAPTION>
NPP NMA NMO
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Dividend per share $.0840 $.0855 $.0865
====== ====== ======
</TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at October 31, 1996,
were as follows:
<TABLE>
<CAPTION>
NPP NMA NMO
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized:
Appreciation $71,662,341 $66,405,020 $76,498,450
Depreciation (882,398) (891,227) (518,286)
---------- ---------- -----------
Net unrealized appreciation $70,779,943 $65,513,793 $75,980,164
=========== =========== ============
</TABLE>
<PAGE>
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:
<TABLE>
<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
</TABLE>
The fee compensates the Adviser for overall investment advisory
and administrative services and general office facilities. The Funds pay no
compensation directly to those 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 October 31, 1996,
net assets consisted of:
<TABLE>
<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 591,033 420,972 447,621
Paid-in surplus 824,971,525 586,950,602 623,760,817
Balance of undistributed net investment income 1,196,041 1,056,091 1,065,866
Accumulated net realized gain (loss) from investment
transactions (6,903,866) (2,285,938) (267,294)
Net unrealized appreciation of investments 70,779,943 65,513,793 75,980,164
-------------- ------------ --------------
Net assets $1,290,634,676 $951,655,520 $1,000,987,174
============== ============ ==============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
============== ============ ==============
</TABLE>
<PAGE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which
include general obligation, escrowed and revenue
bonds. At October 31, 1996, the revenue sources by
municipal purpose for these investments, expressed
as a percent of total investments, were as
follows:
<TABLE>
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
Revenue Bonds:
Housing Facilities 23% 15% 17%
Health Care Facilities 3 11 9
Electric Utilities 10 10 7
Pollution Control Facilities 10 8 7
Transportation 3 4 8
Educational Facilities 3 4 3
Water / Sewer Facilities 1 3 4
Lease Rental Facilities 2 1 4
Other 7 3 5
General Obligation Bonds 6 4 7
Escrowed Bonds 32 37 29
----- ----- -----
100% 100% 100%
===== ====- =====
</TABLE>
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, 60%
for NMA and 43% for NMO). Such insurance or escrow,
however, does not guarantee the market value of the
municipal securities or the value of any of the
Funds' shares.
All of the temporary investments in short-term
municipal securities have credit enhancements
(letters of credit, guarantees or insurance)
issued by third party domestic or foreign banks or
other institutions.
For additional information regarding each
investment security, refer to the Portfolio of
Investments of each Fund.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<CAPTION>
Dividends from tax-exempt
Operating performance net investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investments** shareholders shareholders++
<S> <C> <C> <C> <C> <C>
NPP
Year ended 10/31,
1996 $15.210 $1.272 $ (.122) $(1.041) $(.249)
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
10/31/1992 14.960 .574 (.067) (.455) (.082)
Year ended 5/31,
1992 14.280 1.395 .608 (1.042) (.281)
1991 13.680 1.387 .628 (1.025) (.390)
6/22/89 to
5/31/90 14.050 1.120 (.274) (.788) (.265)
<CAPTION>
NMA
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1996 15.570 1.291 (.077) (1.049) (.255)
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
Organization Per
and offering Common
costs and share
Preferred share Net asset market
To Common To Preferred underwriting value end value end
shareholders shareholders++ discounts of period of period
<S> <C> <C> <C> <C> <C>
NPP
Year ended 10/31,
1996 $ -- $ -- $ -- $15.070 $15.125
1995 -- -- -- 15.210 15.250
1994 -- -- -- 14.400 13.375
1993 -- -- -- 15.950 16.625
5 mos. ended
10/31/1992 -- -- -- 14.930 15.000
Year ended 5/31,
1992 -- -- -- 14.960 15.000
1991 -- -- -- 14.280 14.625
6/22/89 to
5/31/90 -- -- (.163) 13.680 14.000
<CAPTION>
NMA
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1996 -- -- -- 15.480 15.125
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
Ratio
Total of net
investment Total Ratio of investment
return return Net assets expenses to income Portfolio
on market on net asset end of period average net to average turnover
value+ value+ (in thousands) assets*** net assets*** rate
<S> <C> <C> <C> <C> <C> <C>
NPP
Year ended 10/31,
1996 6.17% 6.15% $1,290,635 .78% 5.83% 15%
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
10/31/1992 2.94 2.81 1,254,800 .74* 6.16* 5
Year ended 5/31,
1992 9.94 12.50 1,252,009 .74 6.44 5
1991 12.30 12.42 1,204,809 .75 6.63 14
6/22/89 to
5/31/90 (1.45) 3.07 1,166,027 .71* 6.57* 22
<CAPTION>
NMA
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31,
1996 7.04 6.37 951,656 .78 5.72 13
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
See notes on page 54.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Dividends from tax-exempt
Operating performance net investment income
Net
realized and
Net asset unrealized
value Net gain (loss)
beginning investment from To Common To Preferred
of period income investments** shareholders shareholders++
<CAPTION>
NMO
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1996 $15.770 $1.298 $ (.096) $(1.049) $(.263)
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
Organization Per
and offering Common
costs and share
Preferred share Net asset market
To Common To Preferred underwriting value end value end
shareholders shareholders++ discounts of period of period
NMO
<S> <C> <C> <C> <C> <C>
Year ended 10/31,
1996 $ -- $ -- $ -- $15.660 $15.250
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
Ratio
Total of net
investment Total Ratio of investment
return return Net assets expenses to income Portfolio
on market on net asset end of period average net to average turnover
value+ value+ (in thousands) assets*** net assets*** rate
NMO
<S> <C> <C> <C> <C> <C> <C>
Year ended 10/31,
1996 8.82% 6.15% $1,000,987 .77% 5.81% 19%
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.
** Net of taxes, if applicable (note 1).
*** Ratios do not reflect the effect of dividend payments to Preferred shareholders.
+ 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.
++ The amounts shown are based on Common share equivalents.
</FN>
</TABLE>
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Shareholders
Nuveen Performance Plus Municipal Fund, Inc.
Nuveen Municipal Advantage Fund, Inc.
Nuveen Municipal Market Opportunity Fund, Inc.
We have audited the accompanying statements of net
assets, including the portfolios of investments,
of Nuveen Performance Plus Municipal Fund, Inc.,
Nuveen Municipal Advantage Fund, Inc. and Nuveen
Municipal Market Opportunity Fund, Inc. as of
October 31, 1996, and the related statements of
operations and changes in net assets and the
financial highlights for the periods indicated
thereon. These financial statements and financial
highlights are the responsibility of the Funds'
management. Our responsibility is to express an
opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with
generally accepted auditing standards. Those
standards require that we plan and perform the
audit to obtain reasonable assurance about whether
the financial statements and financial highlights
are free of material misstatement. An audit
includes examining, on a test basis, evidence
supporting the amounts and disclosures in the
financial statements. Our procedures included
confirmation of investments owned as of October
31, 1996, by correspondence with the custodian. An
audit also includes assessing the accounting
principles used and significant estimates made by
management, as well as evaluating the overall
financial statement presentation. We believe that
our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and
financial highlights referred to above present
fairly, in all material respects, the financial
positions of Nuveen Performance Plus Municipal
Fund, Inc., Nuveen Municipal Advantage Fund, Inc.
and Nuveen Municipal Market Opportunity Fund, Inc.
at October 31, 1996, and the results of their
operations, changes in their net assets and
financial highlights for the periods indicated, in
conformity with generally accepted accounting
principles.
ERNST & YOUNG LLP
Chicago, Illinois
December 13, 1996
<PAGE>
Build your wealth
automatically
Photographic image of Customer Service Rep at Nuveen.
Managing your portfolio takes skill, experience, and informed judgment, but
our efforts to help you build your wealth don't stop there. At Nuveen, we
offer a number of convenient ways to add to your tax-free portfolio and earn
the tax-free income you need to achieve your financial goals.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen exchange-traded fund allows you to conveniently
reinvest dividends and/or capital gains distributions in additional fund
shares. If you do not elect to reinvest distributions, all distributions are
paid by check, or can be deposited directly your bank or brokerage account.
By choosing to reinvest, you'll be able to set aside money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also benefit from dollar-cost averaging, a technique of
investing at regular intervals, which allows you to build a high-quality,
tax-free portfolio conveniently and cost effectively over time. All
reinvestments are invested in full and fractional shares and are kept in
non-certificated form by the Plan Agent, Chase Manhattan Bank.
To make recordkeeping easy and convenient, each month you'll receive a
statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total number
of shares you own. Income or capital gains taxes may be payable on dividends
or distributions that are reinvested.
The shares you acquire by reinvesting will either be purchased on the open
market or be newly issued by the Fund. If the shares are trading at or above
net asset value at the time of valuation, the Fund will issue new shares at
<PAGE>
the then-current market price. If the shares are trading at less than net
asset value, shares for your account will be purchased on the open market.
Dividends and distributions received to purchase shares in the open market
will be invested within 30 days of the dividend payment date; no interest will
be paid on dividends and distributions awaiting reinvestment. Because the
market price of shares may increase before purchases are completed, the
average purchase price per share may exceed the market price at the time of
valuation resulting in the acquisition of fewer shares than if the dividend or
distribution had been paid in shares issued by the Fund. A pro rata portion of
any applicable brokerage commissions on open market purchases will be paid by
Plan participants. These commissions usually will be lower than those charged
on individual transactions.
You may, of course, change your distribution option or withdraw from the
Plan at any time, should your needs or situation change. Should you withdraw,
you can receive a certificate for all whole shares credited to your
reinvestment account and cash payment for fractional shares, or cash payment
for all reinvestment account shares, less brokerage commissions and a $2.50
service fee.
You also can reinvest if your shares are registered in the name of a
brokerage firm, bank, or other nominee. Just ask your investment adviser if
the firm will participate on your behalf. If not, it's easy to have the shares
registered in your name and to apply for a reinvestment account directly.
Participants whose shares are registered in the name of one firm may not be
able to transfer the shares to another firm and continue to participate in the
Plan.
The Fund reserves the right to amend or terminate the Plan at any time.
Although the Fund reserves the right to amend the Plan to include a service
charge payable by the participants, there is no direct service charge to
participants in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll
in or withdraw from the Plan, speak with your financial adviser or call us
toll-free at 1.800.257.8787.
Photographic image of Customer Service Rep at Nuveen.
"When it comes to financial planning, your investment adviser knows
your situation best. Nuveen is pleased to provide the account information you
and your adviser need to plan effectively."
Photographic image of Customer Service Rep at Nuveen.
"At Nuveen, we make reinvesting easy. A phone call is all it takes to set up
your reinvestment account."
<PAGE>
Photographic image of Customer Service Rep at Nuveen.
"When questions come up about your investment, we're happy to provide the
up-to-date information you and your adviser need."
More than just a number
If you've ever called our toll-free customer service line, you've spoken with
one of Nuveen's customer service representatives. These reps are ready to
assist you with answers to your questions about current account balances,
yields, and previous transactions on your accounts. They can also supply
additional information about any of Nuveen's tax-free unit trusts and mutual
funds.
If you have a question about your account, or whenever you need help, just
call 800.257.8787. Our customer service reps are available Monday through
Friday from 8:00 a.m. to 8:00 p.m. Eastern time.
Photographic image of woman seated and man standing behind her
representing Nuveen investors.
<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
FAN-2-10.96
