Nuveen Exchange-
Traded Funds
Providing tax-free income
to help you live your dreams
PERFORMANCE PLUS (NPP)
MUNICIPAL ADVANTAGE (NMA)
MARKET OPPORTUNITY (NMO)
SEMIANNUAL REPORT/APRIL 30, 1997
Photographic image of couple walking on beach.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
11 Commonly used terms
13 Portfolio of investments
50 Statement of net assets
51 Statement of operations
52 Statement of changes in net assets
54 Notes to financial statements
64 Financial highlights
<PAGE>
Dear shareholder
"Shareholders continue to enjoy very attractive current yields generated by
portfolios of quality bonds."
Photographic image of headshot of Chairman and
Chief Executive Officer of Nuveen.
It is my pleasure to report to you on the performance of Nuveen's
exchange-traded funds. Over the past year, shareholders in these funds were
rewarded with attractive tax-free income. A hallmark of Nuveen's fixed-income
investments, this dependable tax-free income makes these funds an excellent
choice for those seeking a stable addition to their core investment portfolio.
To safeguard our shareholders' interests, Nuveen continues to work to find ways
to protect this level of income through changing market conditions.
The funds' sound performance came during a year of volatility in the municipal
bond market, including a mid-year decline and a post-election rally. However, by
continuing to seek out undervalued bonds in sectors and regions we believe are
fundamentally strong, we were able to generate very attractive current yields
for shareholders while also preserving capital.
As of April 30, 1997, shareholders in the funds covered in this report were
receiving annual tax-free yields on net asset value that ranged from 6.76% to
6.81%. To match these attractive yields, investors in the 36% federal income tax
bracket would have had to earn at least 10.56% on taxable alternatives.
<PAGE>
During the same period, the funds outperformed the benchmark Lehman Brothers
Municipal Bond Index, which posted a 6.66% return. Over the past year, the funds
generated total returns, including reinvested dividends and capital gains (if
any) and changes in net asset value, of 6.67% to 7.15%, equivalent to taxable
total returns of 10.56% to 11.12% for investors in the 36% tax bracket. The
level of these returns gains added significance when viewed in the context of
bond market results for the past year, which reflect the rather flat performance
of 1996 and the concern over Federal Reserve delib-erations in early 1997.
Nuveen has recently made significant and exciting additions to the investment
options we offer--that make it easier to keep more of what you earn. We
introduced three new equity and balanced funds for investors seeking both
long-term growth and current income. Further, Nuveen's municipal bond fund
selection is now one of the largest in the industry, since our merger with
Flagship Resources, Inc., a highly regarded sponsor of fixed-income mutual
funds. As a Nuveen shareholder, this merger offers you even greater access to
the municipal market.
For more complete information regarding Nuveen investment products, including
charges and expenses, call Nuveen at (800) 257-8787, or contact your financial
adviser for a prospectus. Please read the information carefully before you
invest.
On behalf of everyone at Nuveen, I thank you for your continued confidence in
us and our family of investments. You can continue to depend on us for
high-quality investment products that withstand the test of time. We look
forward to serving you in the future.
Sincerely,
/s/ Tim R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 12, 1997
<PAGE>
Answering your
questions
Tom Spalding, head of Nuveen's portfolio management team, reviews recent events
in the municipal market and offers insights into the strategies Nuveen uses to
manage your funds
How would you summarize the bond market over the past 12 months?
Throughout the past year, mixed economic reports produced conflicting interest
rate and inflation forecasts, which caused investors to view the markets with
alternating enthusiasm and uncertainty. In late 1996, 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. The early months of 1997 saw a re-emergence of talk about
inflation, and the markets continue to keep a close eye on the Federal Reserve
to see how seriously it regards such talk.
Over much of the past 12 months, euphoria in the equity market focused
investors' attention on stocks and brought record amounts of new money into
equity-based mutual funds, bypassing the bond market. Some investors, concerned
<PAGE>
about a potential stock market correction, decided to take their profits, but
adopted a wait-and-see attitude about investing capital gains, electing to go
with short-term vehicles until a clearer picture of market trends emerged. These
events affected demand for bond issues of all types during the past year. Only
recently have we begun to see some evidence that investors are evaluating the
effect of the huge run-up in stock prices and are rebalancing their portfolios
by gradually shifting some assets from stocks into bonds.
The actions of the Federal Reserve also continue to play a role in bond market
performance. Although the Fed altered interest rates only once in 1996, at the
very beginning of the year, anticipation of further moves kept the markets
restless. With one rate increase approved already in March of this year, the
concern about potential changes in monetary policy--and the effect of such
changes on the markets--continues in 1997.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal 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.
<PAGE>
What strategies did you use to add value during this market?
The fluctuations of 1996 created specific inefficiencies in the market,
enabling Nuveen to uncover and take advantage of price discrepancies to
improve fund portfolios. For example, we were able to enhance the durability
of the funds' dividends by purchasing bonds with longer call protection.
These bonds were priced similarly to those with shorter calls as interest rates
began to rise in 1996, creating a value investing opportunity. As rates moved
down during the year, the bonds with longer call protection then appreciated
in value more than those with shorter calls.
What role does research play in helping you achieve the funds' objectives?
As an integral part of our portfolio management strategy, Nuveen Research
provides portfolio managers with objective appraisals of the creditworthiness
of new municipal issues, while maintaining surveillance of the credit
performance for all portfolio holdings. To track individual holdings, each
Nuveen Research analyst is responsible for a specific surveillance portfolio,
which is defined in terms of geography and sector (e.g., healthcare, housing).
Specialization by sector enables our Research teams to focus their credit
quality evaluation efforts and complement the vantage point of each portfolio
manager.
<PAGE>
What is the current economic outlook?
The economy in the second quarter has grown at a slower pace than
during the first quarter, however, the growth still may be at a level that
exceeds the Federal Reserve's long-term targets. Interest rates on 30-year
Treasuries have moved in a range of between 6.65% to 7.20% over the past
several months, and expectations are that this range of rates may
continue through the third quarter.
Of course, that's a short-term outlook. By following a disciplined value
strategy and depending on fundamental research, the long-term outlook for our
municipal bond funds--and for Nuveen shareholders--is very good. We will
continue to look for opportunities in sectors like healthcare and public power
and in regions like the Midwest and the Sun Belt. And will continue to identify
bonds that are structured in ways that make them attractive through a complete
interest rate cycle.
<PAGE>
<TABLE>
NUVEEN PERFORMANCE PLUS
MUNICIPAL FUND, INC.
NPP
While its yield remains highly attractive compared with those of other
fixed-income alternatives, the Fund adjusted its monthly tax-free dividend last
August, after more than six months at its previous rate, bringing it in line
with its current earnings rate.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0865
6/12/96 $0.0865
7/11/96 $0.0865
8/13/96 $0.0840
9/11/96 $0.0840
10/10/96 $0.0840
11/13/96 $0.0840
12/11/96 $0.0840
1/13/97 $0.0840
2/12/97 $0.0840
3/12/96 $0.0840
4/11/96 $0.0840
<CAPTION>
FUND HIGHLIGHTS 4/30/97
<S> <C>
Yield 6.78%
Taxable-equivalent yield 10.59%
Annual total return on NAV 7.15%
Taxable-equivalent total return 11.12%
Share price $14.875
NAV $14.86
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN MUNICIPAL
ADVANTAGE FUND, INC.
NMA
While its yield remains highly attractive compared with those of other
fixed-income alternatives, the Fund adjusted its monthly tax-free dividend last
August, after more than six months at its previous rate, bringing it in line
with its current earnings rate.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0870
6/12/96 $0.0870
7/11/96 $0.0870
8/13/96 $0.0855
9/11/96 $0.0855
10/10/96 $0.0855
11/13/96 $0.0855
12/11/96 $0.0855
1/13/97 $0.0855
2/12/97 $0.0855
3/12/96 $0.0855
4/11/96 $0.0855
<CAPTION>
FUND HIGHLIGHTS 4/30/97
Yield 6.76%
Taxable-equivalent yield 10.56%
Annual total return on NAV 7.06%
Taxable-equivalent total return 10.99%
Share price $15.1875
NAV $15.23
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN MUNICIPAL MARKET
OPPORTUNITY FUND, INC.
NMO
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady, attractive dividends. This
dividend has remained stable for the last 15 months.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0865
6/12/96 $0.0865
7/11/96 $0.0865
8/13/96 $0.0865
9/11/96 $0.0865
10/10/96 $0.0865
11/13/96 $0.0865
12/11/96 $0.0865
1/13/97 $0.0865
2/12/97 $0.0865
3/12/96 $0.0865
4/11/96 $0.0865
<CAPTION>
FUND HIGHLIGHTS 4/30/97
Yield 6.81%
Taxable-equivalent yield 10.64%
Annual total return on NAV 6.67%
Taxable-equivalent total return 10.56%
Share price $15.25
NAV $15.45
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, April 30, 1997) divided by its closing price per share on
that date.
Taxable equivalent yield
The return an investor subject to a given income tax rate would need to obtain
from a fully taxable investment to equal the fund's stated annual ized yield
on share price. In this report, the tax rate is assumed to be 36% for
shareholders, based on 1997 incomes of $124,650-$271,050 for investors filing
singly, $151,750-$271,050 for those filing jointly.
Net Asset ValuE (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by its total number of common shares
outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if any.
<PAGE>
Taxable equivalent total return
The total return an investor subject to a given 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 are deemed advisable. No shares
were repurchased during the six-month period ended April 30, 1997. Any future
repur chases will be reported to shareholders in the next annual or semiannual
report.
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<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC. (NPP)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.0%
$3,290,000 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 $3,455,520
3,700,000 Alabama Water Pollution Control Authority,
Revolving Fund Loan Bonds, Series 1994,
6.750%, 8/15/17 Aaa 8/05 at 100 4,000,403
5,075,000 Jefferson County, Alabama, Sewer Revenue
Refunding Warrants, Series 1997-A, 5.625%,
2/01/22 Aaa 2/07 at 101 4,929,348
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ALASKA - 0.4%
1,570,000 Alaska Housing Finance Corporation, Insured
Mortgage Program Bonds, 1990 First Series,
7.800%, 12/01/30 Aa1 12/00 at 102 1,580,378
3,690,000 Alaska Housing Finance Corporation, Collateralized
Bonds, 1989 First Series (Veterans Mortgage
Program), 7.450%, 12/01/29 Aaa 6/00 at 102 3,792,619
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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 (Pre-refunded to 8/01/02) A 8/02 at 101 1/2 6,547,720
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ARKANSAS - 2.3%
17,715,000 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 18,337,505
8,005,000 Arkansas Development Finance Authority, Single
Family Mortgage Revenue Bonds, 1996 Series H
(AMT), 6.100%, 7/01/30 (Alternative Minimum Tax) AAA 1/07 at 102 7,947,844
3,200,000 City of North Little Rock, Arkansas, Health
Facilities Board (Baptist Health), Healthcare
Revenue Bonds (Baptist Health), Series 1996A,
5.500%, 12/01/21 Aaa 12/06 at 101 3,121,920
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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 24,892,080
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
(Pre-refunded to 9/01/00) A 9/00 at 102 12,706,344
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$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 $15,160,816
24,265,000 Department of Water and Power of The City of
Los Angeles, California, Electric Plant Refunding
Bonds, Second Issue of 1993, 4.750%, 11/15/19 Aa3 11/03 at 102 20,742,693
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 2,946,339
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 16,063,066
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 22,764,420
2,325,000 Community Redevelopment Agency of the City of
Palmdale, Restructured Single Family Mortgage
Revenue Bonds, Series 1986D, 8.000%, 4/01/16
(Alternative Minimum Tax) Aaa No Opt. Call 2,789,814
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 6,379,800
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 A 12/05 at 102 7,722,744
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 9,735,200
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 A 7/03 at 102 4,232,756
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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 No Opt. Call 5,283,550
11,945,000 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 13,223,234
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* 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 1/01 at 102 $ 7,563,948
3,595,000 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 3,985,956
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 4,930,748
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 5,378,800
- ----------------------------------------------------------------------------------------------------
FLORIDA - 3.7%
9,960,000 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 10,364,774
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 8,889,900
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 28,441,877
- ----------------------------------------------------------------------------------------------------
GEORGIA - 1.6%
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 9,823,680
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 10,408,500
- ----------------------------------------------------------------------------------------------------
ILLINOIS - 6.4%
10,600,000 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) Baa2 2/00 at 102 11,803,842
Illinois Development Finance Authority,
Multi-family Housing Revenue Bonds, Series 1992
(Town and Garden Apartments Project):
6,340,000 7.800%, 3/01/06 (Alternative Minimum Tax) BBB+ 3/02 at 102 6,659,980
5,960,000 7.200%, 9/01/08 (Alternative Minimum Tax) BBB+ 3/02 at 102 6,163,355
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$10,000,000 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 $ 9,691,200
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 5,791,462
4,620,000 7.200%, 8/15/07 Aa 8/99 at 102 4,924,227
12,910,000 Illinois Health Facilities Authority, Revenue
Bonds, Series 1994A (Northwestern Memorial
Hospital), 6.000%, 8/15/24 AA 8/04 at 102 13,013,796
City of Chicago, General Obligation Library Bonds,
Series 1997:
2,000,000 5.750%, 1/01/17 Aaa 1/08 at 102 1,993,980
6,000,000 5.250%, 1/01/27 Aaa 1/08 at 102 5,522,940
5,000,000 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 5,491,400
9,760,000 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 10,496,197
- ----------------------------------------------------------------------------------------------------
INDIANA - 1.7%
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 5,309,955
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 5,264,800
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 5,171,500
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 6,033,805
- ----------------------------------------------------------------------------------------------------
IOWA - 1.3%
15,455,000 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 16,088,655
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
KANSAS - 0.2%
$ 1,825,000 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 $ 1,928,332
- ----------------------------------------------------------------------------------------------------
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 11,168,300
- ----------------------------------------------------------------------------------------------------
LOUISIANA - 4.8%
35,700,000 Louisiana Stadium and Exposition District, Hotel
Occupancy Tax Bonds, Series 1996, 5.750%, 7/01/26 Aaa 7/06 at 102 35,273,742
5,790,000 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 6,118,640
6,795,000 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 7,173,685
5,630,000 New Orleans Housing Development Corporation,
Multifamily Housing Revenue Refunding Bonds,
Series 1990A (Curran Place Apartments/Fannie
Mae Collateralized), 7.700%, 8/01/23 AAA 6/03 at 100 6,002,425
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 6,645,535
- ----------------------------------------------------------------------------------------------------
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 10,619,180
- ----------------------------------------------------------------------------------------------------
MARYLAND - 1.2%
7,475,000 Housing Opportunities Commission of Montgomery
County (Montgomery County, Maryland),
Multifamily Housing Revenue Bonds, 1994
Series A, 6.250%, 7/01/28 Aa 7/04 at 102 7,625,696
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 7,798,078
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS - 7.0%
$ 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 $ 7,750,904
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 16,188,406
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 4,315,520
10,100,000 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 10,754,480
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 4,681,074
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 13,402,346
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 12,553,589
505,000 8.750%, 7/01/18 BBB+ No Opt. Call 582,962
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 8,770,160
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 11,132,997
- -------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.4%
4,430,000 Grand Rapids Housing Corporation, Multifamily
Revenue Refunding Bonds, Series 1992 (FHA
Insured Mortgage Loan-Section 8 Assisted
Elderly Project), 7.375%, 7/15/41 AAA 1/04 at 104 4,852,135
- -------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.3%
15,035,000 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 15,725,858
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MINNESOTA (CONTINUED)
$ 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 $ 25,671,152
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 2,771,699
10,000,000 6.800%, 3/01/28 Aaa3/05 at 102 19/32 10,630,900
- -------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.7%
8,950,000 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 9,253,316
- --------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.0%
12,635,000 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 13,150,887
- --------------------------------------------------------------------------------------------------------------------
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 10,595,238
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 1,526,126
2,440,000 7.900%, 6/01/06 A- 6/98 at 102 2,568,905
8,285,000 7.900%, 6/01/09 (Pre-refunded to 6/01/98) A- 6/98 at 102 8,780,526
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) N/R 6/99 at 102 5,495,097
- -------------------------------------------------------------------------------------------------------------------
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 3,258,652
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK - 13.0%
$ 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 $ 4,805,010
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 3,947,120
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 26,008,283
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 4,226,320
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 14,127,403
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 16,278,000
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 10,062,023
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 4,281,182
850,000 8.500%, 8/01/08 Baa1 8/97 at 102 874,446
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 8,283,416
440,000 6.625%, 8/01/14 Aaa 8/02 at 101 1/2 473,810
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 13,599,375
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 15,620,387
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 11,757,141
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 8,562,257
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 6,500,000 New York City Municipal Water Finance 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 $ 6,956,885
16,000,000 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 15,898,080
- --------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.2%
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 18,800,349
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 9,548,128
- -------------------------------------------------------------------------------------------------------------------
OHIO - 0.9%
7,050,000 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 7,414,626
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 1,199,452
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 692,006
805,000 Toledo-Lucas County Port Authority, Development
Revenue Bonds (Northwest Ohio Bond Fund),
Series 1989E, 8.375%, 5/15/05 (Alternative
Minimum Tax) (Pre-refunded to 5/15/00) N/R 5/00 at 102 831,525
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 1,559,827
- -------------------------------------------------------------------------------------------------------------------
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 10,624,506
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OKLAHOMA (CONTINUED)
$ 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 $ 4,880,122
- -------------------------------------------------------------------------------------------------------------------
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
(Pre-refunded to 11/01/00) A+ 11/00 at 102 6,004,083
- -------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 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 10,412,100
- -------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.3%
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 16,137,973
- -------------------------------------------------------------------------------------------------------------------
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 4,943,914
370,000 7.625%, 11/01/13 AA- 11/98 at 102 400,843
- -------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.8%
2,265,000 Tennessee Housing Development Agency,
Homeownership Program Bonds, Issue G,
7.650%, 7/01/06 AA 7/03 at 100 2,396,529
7,265,000 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 7,410,227
- -------------------------------------------------------------------------------------------------------------------
TEXAS - 10.4%
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 10,452,545
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 11,751,620
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 780,000 Bexar County Housing Finance Corporation, Texas,
Single Family Mortgage Revenue Bonds, Series
1984, 10.875%, 3/01/10 A+ 9/97 at 100 $ 785,889
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 26,672,250
20,000,000 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 21,272,000
6,380,000 Fort Worth Housing Finance Corporation, Home
Mortgage Revenue Refunding Bonds, Series 1991A,
8.500%, 10/01/11 Aa 10/01 at 103 6,929,892
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 4,568,623
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 102 742,298
25,200,000 Matagorda County Navigation District Number One
(Texas), Collateralized Revenue Refunding Bonds
(Houston Lighting & Power Company Project),
Series 1989C, 7.125%, 7/01/19 Aaa 7/99 at 102 26,940,312
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%, 6/0115 (Pre-refunded to 6/01/99) Aaa 6/99 at 102 14,755,523
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 9,448,830
- -------------------------------------------------------------------------------------------------------------------
UTAH - 1.1%
13,500,000 Intermountain Power Agency (Utah), Power Supply
Revenue Bonds, Series 1987B, 7.200%, 7/01/19 A1 7/97 at 102 13,835,475
- -------------------------------------------------------------------------------------------------------------------
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 11,520,300
- -------------------------------------------------------------------------------------------------------------------
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 11,782,005
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WASHINGTON - 6.2%
$ 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 $ 15,614,720
Washington Public Power Supply System, Nuclear
Project No. 1, Refunding Revenue Bonds,
Series 1989A:
40,290,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 43,528,911
7,500,000 6.000%, 7/01/17 Aa1 7/99 at 100 7,408,575
4,095,000 Washington Public Power Supply System, Nuclear
Project No. 2 Revenue Bonds, Series 1981A,
14.375%, 7/01/01 Aa1 No Opt. Call 4,954,621
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 3,914,778
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 3,840,640
- -------------------------------------------------------------------------------------------------------------------
$1,197,550,000 Total Investments - (cost $1,194,088,331) - 97.9% 1,252,069,087
==============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 2,000,000 Gulf Coast Waste Disposal Authority Pollution
Control Revenue Refunding (Amoco Oil Company
Project), Series 1992, Variable Rate Demand Bonds,
3.900%, 10/01/17+ VMIG-1 2,000,000
1,000,000 The University Athletic Association, Inc., Capital
Improvement Revenue Bonds, Series 1990,
Variable Rate Demand Bonds, 4.000%, 2/01/20+ VMIG-1 1,000,000
- -------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Total Temporary Investments - 0.2% 3,000,000
=============
Other Assets Less Liabilities - 1.9% 24,243,241
- -------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,279,312,328
==============
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 70 $ 747,656,078 60%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 25 220,567,194 18
PORTFOLIO OF A+ A1 6 46,869,767 4
INVESTMENTS A, A- A, A2, A3 11 92,572,339 7
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 16 129,361,002 10
TEMPORARY Non-rated Non-rated 6 15,042,707 1
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 134 $1,252,069,087 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
+ 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>
<CAPTION>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MUNICIPAL ADVANTAGE FUND, INC. (NMA)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* 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 $ 4,048,022
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 11.3%
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 4,288,440
4,500,000 California Health Facilities Financing Authority,
Insured Health Facilities Revenue Bonds (ValleyCare
Hospital Corporation), 1989 Series A,
7.000%, 6/01/20 A 5/00 at 102 4,784,760
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 22,856,074
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 9,172,958
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 Aa3 11/03 at 102 10,647,032
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 10,392,000
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 4,606,524
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 14,751,110
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 5,890,850
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 6,320,350
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 11,487,817
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COLORADO - 1.1%
$ 9,390,000 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 $ 10,619,996
- -------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.7%
6,585,000 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 6,693,455
- -------------------------------------------------------------------------------------------------------------------
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 5,467,750
5,740,000 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+ 2/00 at 102 6,149,032
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 9,846,710
- -------------------------------------------------------------------------------------------------------------------
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 11,826,302
- -------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.5%
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) Baa2 2/00 at 102 11,970,878
11,625,000 Illinois Educational Facilities Authority, Adjustable
Demand Revenue Bonds, The University of Chicago,
Series 1985, Conversion To AFixed Interest Rate,
5.70%, 12/01/25 Aa1 12/03 at 102 11,266,020
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 4,317,060
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 10,319,200
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 11,968,330
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 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 $ 8,305,309
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 5,440,150
6,890,000 Illinois Housing Development Authority, Residential
Mortgage Revenue Bonds, 1988 Series C,
8.100%, 2/01/22 (Alternative Minimum Tax) Aa 8/98 at 102 7,120,539
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 3,086,430
11,800,000 Metropolitan Pier and Exposition Authority (Illinois),
McCormick Place Expansion Project Bonds, Series
1922A, 6.500%, 6/15/27 (Pre-refunded to 6/15/03) Aaa 6/03 at 102 12,959,940
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 2,980,475
- -------------------------------------------------------------------------------------------------------------------
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 8,725,770
7,425,000 Fort Wayne International Airport Bldg. Corp.,
Airport Improvement Bonds, Series 1994, Fort
Wayne, Indiana, 5.900%, 1/01/14 (Alternative
Minimum Tax) Aa 1/04 at 101 7,390,028
3,215,000 Mooresville Consolidated School Bldg. Corp., First
Mortgage Bonds, Series 1994B (Morgan County,
Indiana), 6.400%, 7/15/15 A(p) 1/04 at 102 3,393,400
- -------------------------------------------------------------------------------------------------------------------
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 5,155,350
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 3,329,235
- -------------------------------------------------------------------------------------------------------------------
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 13,476,800
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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 $ 5,317,300
3,500,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) Aaa 3/00 at 102 3,841,180
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 8,584,700
13,915,000 Massachusetts Health and Educational Facilities
Authority, Revenue Bonds, Capital Asset Program
Issue, Series F, 7.300%, 10/01/18 (Pre-refunded
to 4/01/00) Aaa 4/00 at 102 15,167,489
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 2,589,070
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 11,546,197
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 9,643,931
11,535,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 12,645,474
1,000,000 City of Boston, Massachusetts, General Obligation
Bonds, 1990 Series A, 7.375%, 2/01/10
(Pre-refunded to 2/01/00) A1 2/00 at 102 1,088,120
- -------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.9%
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 3,227,867
3,000,000 8.500%, 2/01/12 (Pre-refunded to 2/01/00) BBB 2/00 at 102 3,340,710
2,000,000 8.625%, 2/01/20 (Pre-refunded to 2/01/00) BBB 2/00 at 102 2,233,400
- -------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.4%
8,200,000 Minnesota Housing Finance Agency, Single Family
Mortgage Bonds, 1990 Series A, 7.950%, 7/01/22
(Alternative Minimum Tax) AA+ 7/00 at 102 8,632,304
Minneapolis/Saint Paul Housing Finance Board,
Single Family Mortgage Revenue Bonds
(Minneapolis/Saint Paul Family Housing Program,
Phase VIII), Series 1990A:
810,000 7.750%, 8/01/10 (Alternative Minimum Tax) AAA 2/00 at 102 849,755
4,410,000 8.000%, 2/01/23 (Alternative Minimum Tax) AAA 2/00 at 102 4,631,603
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MINNESOTA (CONTINUED)
$ 3,400,000 Minneapolis Community Development Agency,
Limited Tax Supported Development Revenue
Bonds, Common Bond Fund Series 1988-1,
8.750%, 12/01/17 (Alternative Minimum Tax) A- 12/98 at 102 $ 3,635,722
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 2,267,236
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) A- 12/99 at 102 2,675,686
- -------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.6%
5,390,000 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 5,827,884
2,705,000 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 2,815,472
1,620,000 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 1,684,865
1,705,000 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 1,771,648
2,660,000 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 2,778,875
- -------------------------------------------------------------------------------------------------------------------
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 2,647,675
- -------------------------------------------------------------------------------------------------------------------
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 16,053,748
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW HAMPSHIRE - 1.7%
$ 3,120,000 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 $ 3,253,754
1,980,000 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 2,085,494
4,400,000 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 4,617,140
6,035,000 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 6,392,694
- -------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.0%
8,750,000 New Jersey Turnpike Authority, Turnpike Revenue
Bonds, Series 1991 C, 6.500%. 1/01/16 Aaa No Opt. Call 9,691,675
- -------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.3%
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 4,890,740
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 28,746,900
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 22,053,339
7,250,000 6.500%, 5/15/19 (Pre-refunded to 5/15/00) AAA 5/00 at 100 7,637,730
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 21,154,457
3,885,000 8.000%, 11/01/08 BBB+ 11/00 at 102 4,312,000
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 9,036,860
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 20,637,400
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 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 $ 5,461,750
8,000,000 The City of New York, General Obligation Bonds,
Fiscal 1991 Series B, 9.500%, 6/01/03 Baa1 No Opt. Call 9,630,960
10,000,000 The City of New York, General Obligation Bonds,
Fiscal 1997 Series G, 6.000%, 10/15/26 Baa1 10/07 at 101 9,710,700
- -------------------------------------------------------------------------------------------------------------------
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 13,019,670
- -------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.2%
2,165,000 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 2,261,949
- -------------------------------------------------------------------------------------------------------------------
OHIO - 1.8%
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 17,165,564
- -------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.7%
1,460,000 Cleveland County Home Loan Authority (Oklahoma),
Single Family Mortgage Revenue Refunding Bonds,
Series 1992, 8.375%, 2/01/12 A1 8/01 at 102 1,573,895
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 14,593,449
- -------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.7%
3,500,000 Pennsylvania Housing Finance Agency, Rental
Housing Refunding Bonds, Issue 1993,
5.800%, 7/01/18 Aaa 7/03 at 102 3,499,685
8,500,000 City of Philadelphia, Pennsylvania, Water and
Wastewater Revenue Bonds, Series 1993,
5.000%, 6/15/16 Aaa 6/03 at 100 7,706,185
4,720,000 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 5,040,630
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
RHODE ISLAND - 3.6%
$ 12,250,000 Rhode Island Health and Educational Building
Corporation Hospital Financing Revenue Bonds,
Lifespan Obligated Group Issue, Series 1996,
5.500%, 5/15/16 Aaa 5/07 at 102 $ 11,815,615
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 7,101,945
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 4,310,609
6,000,000 Rhode Island Convention Center Authority,
Refunding Revenue Bonds, 1993 Series C,
5.000%, 5/15/23 Aaa 5/04 at 102 5,318,580
The Housing Authority of the City of Providence,
Rhode Island, Multifamily Mortgage Revenue Bonds
(FHA-Insured Mortgage Loan - Cathedral Square Apartments II
Project), 1992 Series:
435,000 7.375%, 4/01/10 (Alternative Minimum Tax) AAA 4/02 at 105 468,743
1,060,000 7.400%, 4/01/20 (Alternative Minimum Tax) AAA 4/02 at 105 1,136,076
3,050,000 7.500%, 10/01/32 (Alternative Minimum Tax) AAA 4/02 at 105 3,267,892
- -------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.6%
5,000,000 South Carolina Public Service Authority, Revenue
Bonds, 1993 Refunding Series C, 5.000%, 1/01/25 Aaa 1/03 at 102 4,423,550
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 3,685,185
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 7,372,670
- -------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4%
3,500,000 Tennessee Housing Development Agency, Mortgage
Finance Program Bonds, 1994 Series A,
6.900%, 7/01/25 (Alternative Minimum Tax) A1 7/04 at 102 3,654,070
- -------------------------------------------------------------------------------------------------------------------
TEXAS - 7.0%
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) Baa1 2/00 at 102 8,698,160
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* 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) Baa1 10/97 at 102 $ 5,669,690
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 Minimum Tax) Baa1 1/99 at 102 6,259,651
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 5,134,510
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 3,159,270
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 (Pre-refunded to 5/15/00) Aaa 5/00 at 102 6,560,280
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 10,068,200
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 6,219,072
2,000,000 6.800%, 12/15/11 Aaa No Opt. Call 2,267,640
7,500,000 Sabine River Authority of Texas (Texas Utilities
Electric Company Project), Series 1990A,
8.125%, 2/01/20 (Alternative Minimum Tax) Baa1 2/00 at 102 8,154,525
The Wood Glen Housing 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 1,884,074
1,250,000 7.650%, 7/01/23 Aaa 1/00 at 103 1,320,263
- -------------------------------------------------------------------------------------------------------------------
UTAH - 1.1%
640,000 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 102 656,166
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTAH (CONTINUED)
$ 6,465,000 Intermountain Power Agency (Utah), Power Supply
Revenue Bonds, Series 1987B, 7.200%, 7/01/19 A1 7/97 at 102 $ 6,625,655
4,000,000 Intermountain Power Agency, Power Supply Revenue
Refunding Bonds, 1996 Series D, 5.000%, 7/01/23 A1 7/06 at 102 3,530,000
- -------------------------------------------------------------------------------------------------------------------
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 7,873,742
- -------------------------------------------------------------------------------------------------------------------
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 7,271,483
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 2,945,580
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 12,069,004
9,115,000 Washington Public Power Supply System, Nuclear
Project No. 1, Refunding Revenue Bonds, Series
1989 A, 7.500%, 7/01/15 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 9,847,755
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 23,800,560
11,340,000 Washington Public Power Supply System, Nuclear
Project No. 2 Refunding Revenue Bonds, Series
1994A, 5.000%, 7/01/09 Aaa 7/04 at 102 10,840,927
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 7,112,977
5,250,000 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 5,503,995
- -------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.2%
1,405,000 West Virginia Housing Development Fund, Housing
Finance Bonds, 1990 Series A, 7.950%, 5/01/17
(Alternative Minimum Tax) Aaa 11/00 at 102 1,423,448
- -------------------------------------------------------------------------------------------------------------------
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 13,240,880
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WISCONSIN (CONTINUED)
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 $ 9,604,100
15,000,000 5.750%, 11/15/25 Aaa 5/06 at 102 14,680,650
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 3,125,280
- -------------------------------------------------------------------------------------------------------------------
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 3,101,850
- -------------------------------------------------------------------------------------------------------------------
$874,300,000 Total Investments - (cost $867,818,609) - 97.9% 921,930,949
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 1,000,000 Jackson County, Mississippi, Port Facility Refunding
Revenue Bonds (Chevron U. S. A. Inc. Project),
Series 1993, Variable Rate Demand Bonds,
4.000%, 6/01/23+ P-1 1,000,000
800,000 Joliet Regional Port District Marine Terminal
Revenue Refunding Bonds (Exxon Project), 1989
Variable Rate Demand Bonds, 3.900%, 10/01/24+ A-1+ 800,000
300,000 The University Athletic Association, Inc., Capital
Improvement Revenue Bonds, Series 1990,
Variable Rate Demand Bonds, 4.000%, 2/01/20+ VMIG-1 300,000
- -------------------------------------------------------------------------------------------------------------------
$ 2,100,000 Total Temporary Investments - 0.2% 2,100,000
===========
Other Assets Less Liabilities - 1.9% 17,317,151
- -------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $941,348,100
============
- -------------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 66 $548,574,957 60%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 22 128,751,149 14
PORTFOLIO OF A+ A1 7 45,476,846 5
INVESTMENTS A, A- A, A2, A3 10 50,316,378 5
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 16 116,755,092 13
TEMPORARY Non-rated Non-rated 4 32,056,527 3
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 125 $921,930,949 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
(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.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates. + 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
(Unaudited)
NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC. (NMO)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 0.3%
$ 3,000,000 Jefferson County, Alabama, Sewer Revenue Warrants,
Series 1997-D, 5.750%, 2/01/27 Aaa 2/07 at 101 $ 2,950,170
- -------------------------------------------------------------------------------------------------------------------
ALASKA - 1.5%
3,605,000 Alaska Housing Finance Corporation, Insured
Mortgage Program Bonds, 1990 First Series,
7.800%, 12/01/30 Aa1 12/00 at 102 3,628,829
12,000,000 Alaska State Housing Finance Corporation,
Governmental Purpose Bonds, 1995 Series A,
5.875%, 12/01/30 Aaa 12/05 at 102 11,699,040
- -------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.3%
2,645,000 The Industrial Development Authority of the County
of Pima, Single Family Mortgage Revenue Bonds,
Series 1997A, 6.250%, 11/01/29 AAA 11/07 at 102 2,823,617
- -------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.2%
1,995,000 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 2,140,575
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.5%
6,500,000 California Health Facilities Financing Authority,
Insured Revenue Bonds (Episcopal Homes
Foundation Project), Series 1985B, 7.850%, 7/01/15 A+ 7/97 at 101 6,604,130
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 4,253,120
7,300,000 California Health Facilities Financing Authority,
Insured Hospital Revenue Bonds (Children's
Hospital-San Diego), Series 1990, 6.500%, 7/01/20
(Pre-refunded to 7/01/00) Aaa 7/00 at 102 7,840,638
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 6,405,282
13,980,000 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 14,164,536
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 9,138,787
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 5,081,200
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 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 Aa3 2/04 at 102 $ 11,038,100
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 Aa3 10/03 at 102 5,112,420
6,815,000 5.400%, 11/15/31 Aa3 11/03 at 102 6,263,326
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 6,235,200
County of Orange, California, 1996 Recovery
Certificates of Participation, Series A:
13,000,000 5.875%, 7/01/19 Aaa 7/06 at 102 13,009,360
3,450,000 6.000%, 7/01/26 Aaa 7/06 at 102 3,490,262
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 4,993,257
- -------------------------------------------------------------------------------------------------------------------
COLORADO - 4.1%
3,630,000 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 3,791,608
City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1992C:
1,200,000 5.950%, 11/15/98 (Alternative Minimum Tax) Baa No Opt. Call 1,225,572
7,625,000 6.750%, 11/15/22 (Alternative Minimum Tax) Baa 11/02 at 102 7,923,138
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 13,582,188
City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1991D:
5,000,000 7.750%, 11/15/21 (Alternative Minimum Tax) Baa 11/01 at 102 5,502,450
5,000,000 7.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 5,223,250
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 3,765,160
- -------------------------------------------------------------------------------------------------------------------
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 2,209,808
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA - 3.2%
Orange County Housing Finance Authority, GNMA
Collateralized Mortgage Revenue Refunding Bonds,
1990 Series A:
$ 4,320,000 7.500%, 7/01/10 Aaa 7/00 at 103 $ 4,583,045
11,035,000 7.600%, 1/01/24 Aaa 7/00 at 103 11,705,376
10,615,000 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 11,544,343
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 4,019,285
- -------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.2%
17,000,000 Municipal Electric Authority of Georgia, Power
Revenue Bonds, Series D, 7.900%, 1/01/08 A 1/98 at 102 17,777,920
4,000,000 Housing Authority of the City of Athens, Multifamily
Housing Revenue Bonds, Series 1985 (Oakwood
Forest Apartments Project), 8.125%, 12/01/05
(Mandatory put 12/01/97) Baa1 No Opt. Call 4,060,120
- -------------------------------------------------------------------------------------------------------------------
ILLINOIS - 8.3%
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) Baa2 2/00 at 102 16,703,550
3,000,000 Illinois Health Facilities Authority Hospital Revenue
Bonds, Series 1993-A (Hinsdale Hospital),
9.000%, 11/15/15 Baa1 11/00 at 102 3,389,670
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 5,402,197
1,995,000 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 2,073,803
6,500,000 City of Chicago, Illinois, Gas Supply Refunding
Revenue Bonds, 1995 Series A (The Peoples Gas
Light and Coke Company Project), 6.100%, 6/01/25 AA- 6/05 at 102 6,646,965
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 23,334,823
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 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 $ 7,861,662
4,000,000 Community College District No. 508, Cook County,
Illinois, Certificates of Participation,
8.750%, 1/01/06 Aaa No Opt. Call 4,940,960
2,640,000 City of Peoria, Peoria County, Illinois, City of Pekin,
Tazewell and Peoria Counties, Illinois, and City of
Waukegan, Lake County, Illinois, Jointly, GNMA
Collateralized Mortgage Revenue Bonds, Series
1990, 7.875%, 8/01/22 (Alternative Minimum Tax) AAA 8/00 at 103 2,764,555
9,195,000 Regional Transportation Authority, Cook, DuPage,
Kane, Lake, McHenry and Will Counties, Illinois,
General Obligation Bonds, Series 1992A,
6.125%, 6/01/22 Aaa 6/02 at 100 9,258,170
- -------------------------------------------------------------------------------------------------------------------
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
(Pre-refunded to 8/15/00) Aaa 8/00 at 102 14,983,380
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 3,810,207
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 10,931,600
The Indianapolis Local Public Improvement Bond
Bank, Series 1992 D Bonds:
3,750,000 6.750%, 2/01/20 A+ 2/03 at 102 4,032,000
8,000,000 6.500%, 2/01/22 A+ 2/98 at 100 8,083,520
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 5,549,250
10,080,000 The Trustees of Purdue University, Purdue University
Student Fee Bonds, Series M, 6.100%, 7/01/17 Aa2 7/06 at 102 10,328,371
- -------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.2%
2,040,000 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 2,141,816
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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 $ 5,691,320
- -------------------------------------------------------------------------------------------------------------------
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 102 2,617,225
- --------------------------------------------------------------------------------------------------------------------
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 4,650,365
- --------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 7.8%
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 7,975,950
10,800,000 7.625%, 3/01/15 (Pre-refunded to 3/01/00) Aaa 3/00 at 102 11,852,784
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 4,617,942
10,800,000 7.750%, 7/01/14 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 11,953,332
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 6,282,320
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) Baa3 7/00 at 102 3,501,495
4,975,000 9.000%, 7/01/15 Baa 7/00 at 102 5,472,102
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 3,477,952
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 9,292,043
6,615,000 7.500%, 4/01/16 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 7,251,826
5,195,000 7.000%, 4/01/18 (Pre-refunded to 4/01/00) Aaa 4/00 at 102 5,624,938
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MICHIGAN - 2.4%
$ 8,500,000 Michigan State Hospital Finance Authority, Hospital
Revenue and Refunding Bonds (Bay Medical Center),
Series 1990A, 8.250%, 7/01/12 A3 7/00 at 102 $ 9,455,485
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 4,927,860
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 9,078,765
- -------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.4%
3,535,000 Minnesota Housing Finance Agency, Single Family
Mortgage Bonds, 1990 Series A, 7.950%, 7/01/22
(Alternative Minimum Tax) AA+ 7/00 at 102 3,721,365
2,585,000 Minnesota Housing Finance Agency, Single Family
Mortgage Bonds, 1990 Series C, 7.700%, 7/01/14 AA+ 7/00 at 102 2,724,306
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 3,107,528
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 9,883,668
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 4,494,949
- -------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.1%
1,125,000 Mississippi Home Corporation, Single Family Senior
Revenue Refunding Bonds, Series 1990A,
9.250%, 3/01/12 Aaa 9/00 at 103 1,206,326
- -------------------------------------------------------------------------------------------------------------------
NEVADA - 1.1%
Nevada Housing Division, Single Family Program
Senior Bonds, 1990 Issue B (Federally Insured or
Guaranteed Mortgage Loans):
2,540,000 7.850%, 10/01/10 (Alternative Minimum Tax) AA 4/00 at 102 2,659,101
2,195,000 7.900%, 4/01/22 (Alternative Minimum Tax) AA 4/00 at 102 2,278,147
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEVADA (CONTINUED)
$ 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 $ 6,051,540
- -------------------------------------------------------------------------------------------------------------------
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) Ba No Opt. Call 4,844,668
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 Ba 12/01 at 102 2,065,360
- -------------------------------------------------------------------------------------------------------------------
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 10,539,010
- -------------------------------------------------------------------------------------------------------------------
NEW YORK - 22.9%
6,080,000 Dormitory Authority 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 6,635,043
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 17,600,850
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 10,718,400
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 9,838,560
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 4,271,355
New York State Housing Finance Agency, Health
Facilities Revenue Bonds (New York City), 1990
Series A Refunding:
16,580,000 8.000%, 11/01/08 (Pre-refunded to 11/01/00) Aaa 11/00 at 102 18,641,557
3,420,000 8.000%, 11/01/08 BBB+ 11/00 at 102 3,795,892
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 10,215,000 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 $ 10,519,101
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 10,517,958
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 7,663,392
New York State Medical Care Facilities Finance
Agency, Hospital Insured Mortgage Revenue Bonds,
1987 Series A Refunding:
3,620,000 7.250%, 2/15/12 Aa 8/97 at 102 3,720,238
16,520,000 8.000%, 2/15/25 (Pre-refunded to 8/15/97) Aaa 8/97 at 102 17,046,492
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 5,258,450
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 5,257,000
7,150,000 New York State Thruway Authority, General Revenue
Bonds, Series C, 6.000%, 1/01/25 Aaa 1/05 at 102 7,240,805
10,000,000 Municipal Assistance Corporation for the City of
New York (A Public Benefit Corporation of the
State of New York), Series 61 Bonds,
6.875%, 7/01/07 (Pre-refunded to 7/01/97) AA 7/97 at 102 10,251,100
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 6,989,963
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 9,483,200
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 21,028,806
10,000,000 The City of New York, General Obligation Bonds,
Fiscal 1997 Series H, 6.125%, 8/01/25 Baa1 8/07 at 101 9,906,000
2,550,000 New York City Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, Fiscal
1993 Series A, 5.750%, 6/15/18 Aaa 6/02 at 101 1/2 2,532,864
New York City Municipal Water Finance Authority
Water & 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 14,118,854
7,585,000 6.000%, 6/15/20 (Pre-refunded to 6/15/00) A2 6/00 at 100 7,875,809
5,915,000 6.000%, 6/15/20 A2 6/00 at 100 5,925,351
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NORTH CAROLINA - 1.6%
$ 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 $ 10,883,355
4,645,000 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 4,859,785
- -------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.8%
2,995,000 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 3,153,585
8,500,000 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 9,019,775
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 5,377,100
- -------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.6%
3,445,000 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 3,618,938
9,000,000 City of Philadelphia, Pennsylvania, Water and
Wastewater Revenue Bonds, Series 1993,
10.000%, 6/15/05 Aaa No Opt. Call 11,814,660
- -------------------------------------------------------------------------------------------------------------------
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 5,595,700
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 12,340,222
- -------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.6%
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 4,126,522
2,450,000 Three Rivers Solid Waste Authority (South Carolina),
Solid Waste Disposal Facilities Revenue Bonds,
Series 1997, 5.300%, 1/01/27 Aaa 1/07 at 102 2,298,688
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TENNESSEE - 0.3%
$ 3,270,000 Tennessee Housing Development Agency,
Homeownership Program Bonds, Issue Q,
7.950%, 7/01/22 (Alternative Minimum Tax) AA 7/00 at 103 $ 3,403,612
- -------------------------------------------------------------------------------------------------------------------
TEXAS - 7.1%
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 4,816,735
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 6,401,400
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 5,435,832
12,640,000 0.000%, 2/15/13 Aaa 2/05 at 62 15/16 5,058,528
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 21,803,800
3,805,000 El Paso Housing Finance Corporation, Single Family
Mortgage Revenue Refunding Bonds, Series 1991A,
8.750%, 10/01/11 A 4/01 at 103 4,227,165
County of Fort Bend, Texas, Municipal Utility
District No. 42:
1,065,000 5.875%, 9/01/20 (WI) AAA 9/06 at 100 1,067,939
1,145,000 5.875%, 9/01/21 (WI) AAA 9/06 at 100 1,148,160
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 4,177,040
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 16,663,426
- -------------------------------------------------------------------------------------------------------------------
UTAH - 0.2%
2,000,000 Tooele County, Hazardous Waste Disposal Revenue
Bonds (Laidlaw Inc/USPCI Clive PJ), Series 1995,
6.750%, 8/01/10 (Alternative Minimum Tax) BBB+ 8/05 at 102 2,088,160
- -------------------------------------------------------------------------------------------------------------------
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 4,070,720
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VIRGINIA (CONTINUED)
$ 2,000,000 Virginia Housing Development Authority, Multi-
Family Housing Bonds, 1992 Series D,
7.050%, 5/01/18 Aa1 5/02 at 102 $ 2,111,640
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 (Pre-refunded to 8/01/00) A2 8/00 at 102 5,149,035
- -------------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.4%
1,080,000 Washington Public Power Supply System, Nuclear
Project No. 1 Revenue Bonds, 14.375%, 7/01/01 Aaa No Opt. Call 1,324,581
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) Aaa 7/00 at 102 5,991,245
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 3,495,513
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 3,273,582
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) Aaa 7/01 at 102 10,714,182
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 7,546,455
13,240,000 7.375%, 7/01/12 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 14,521,632
2,500,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds,
Series 1993C, 5.375%, 7/01/15 Aa1 7/03 at 102 2,342,750
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 3,956,162
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WYOMING - 0.3%
$ 2,800,000 Town of Jackson, Wyoming, National Rural Utilities
Cooperative Finance Corporation, Guaranteed Gas
Supply Revenue Bonds (Lower Valley Power & Light,
Inc. Project), Series 1997B, 5.875%, 5/01/25
(Alternative Minimum Tax) AA- 5/07 at 102 $ 2,724,064
- -------------------------------------------------------------------------------------------------------------------
$940,576,035 Total Investments - (cost $910,405,192) - 98.5% 976,760,011
============
Other Assets Less Liabilities - 1.5% 14,599,718
- -------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $991,359,729
============
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 61 $440,985,295 45%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 29 158,433,417 16
PORTFOLIO OF A+ A1 4 27,798,415 3
INVESTMENTS: A, A- A, A2, A3 12 95,219,303 10
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 29 226,193,438 23
BB+, BB, BB- Ba1, Ba, Ba2, Ba3 2 6,910,028 1
Non-rated Non-rated 3 21,220,115 2
- -------------------------------------------------------------------------------------------------------------------
TOTAL 140 $976,760,011 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
(WI) Security purchased on a when-issued basis (note 1 of the Notes to
Financial Statements).
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
ASSETS
Investments in municipal securities,
at market value (note 1) $1,252,069,087 $921,930,949 $976,760,011
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 3,000,000 2,100,000 --
Cash 5,137 49,085 313,813
Receivables:
Interest 27,778,739 20,626,468 20,868,657
Investments sold 2,471,926 1,038,443 588,372
Other assets 64,138 32,659 52,364
-------------- ------------ ------------
Total assets 1,285,389,027 945,777,604 998,583,217
-------------- ------------ ------------
LIABILITIES
Payable for investments purchased -- -- 2,210,323
Accrued expenses:
Management fees (note 6) 647,845 481,059 506,341
Other 318,722 237,305 189,988
Preferred share dividends payable 140,808 111,825 444,917
Common share dividends payable 4,969,324 3,599,315 3,871,919
-------------- ------------ ------------
Total liabilities 6,076,699 4,429,504 7,223,488
-------------- ------------ ------------
Net assets (note 7) $1,279,312,328 $941,348,100 $991,359,729
============== ============ ============
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 59,158,617 42,097,246 44,762,071
============== ============ ============
Net asset value per Common share outstanding
(net assets less Preferred shares at
liquidation value, divided by Common
shares outstanding) $ 14.86 $ 15.23 $ 15.45
============== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1997
(Unaudited)
<CAPTION>
NPP NMA NMO
<S> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $42,050,812 $30,752,132 $32,931,565
----------- ----------- -----------
Expenses:
Management fees (note 6) 3,946,387 2,936,046 3,086,746
Preferred shares--auction fees 500,000 375,000 350,000
Preferred shares--dividend disbursing agent fees 29,612 26,615 13,026
Shareholders' servicing agent fees and expenses 118,952 67,797 78,055
Custodian's fees and expenses 77,946 61,137 63,305
Directors' fees and expenses (note 6) 5,176 3,751 3,949
Professional fees 15,396 14,425 12,932
Shareholders' reports--printing and mailing expenses 129,572 98,215 111,703
Stock exchange listing fees 26,272 17,890 20,493
Investor relations expense 55,449 38,387 41,473
Other expenses 29,528 20,408 23,112
------------ ------------ ------------
Total expenses 4,934,290 3,659,671 3,804,794
------------ ------------ ------------
Net investment income 37,116,522 27,092,461 29,126,771
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(notes 1 and 3) 263,612 679,178 (143,289)
Net change in unrealized appreciation or depreciation
of investments (12,799,188) (11,401,453) (9,625,345)
------------ ------------ ------------
Net gain (loss) from investments (12,535,576) (10,722,275) (9,768,634)
------------ ------------ ------------
Net increase in net assets from operations $24,580,946 $16,370,186 $19,358,137
=========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NPP NMA
Six months ended Year ended Six months ended Year ended
4/30/97 10/31/96 4/30/97 10/31/96
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 37,116,522 $ 74,908,835 $ 27,092,461 $ 54,307,900
Net realized gain (loss) from investment
transactions
(notes 1 and 3) 263,612 2,029,380 679,178 692,280
Net change in unrealized appreciation or depreciation
of investments (12,799,188) (9,136,059) (11,401,453) (3,979,682)
-------------- -------------- ------------ ------------
Net increase in net assets from operations 24,580,946 67,802,156 16,370,186 51,020,498
-------------- -------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (29,815,929) (61,281,808) (21,595,893) (44,096,312)
Preferred shareholders (6,930,400) (14,648,674) (5,081,713) (10,731,591)
-------------- -------------- ------------ ------------
Decrease in net assets from distributions
to shareholders (36,746,329) (75,930,482) (26,677,606) (54,827,903)
-------------- -------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions 843,035 8,959,163 -- 1,185,921
-------------- -------------- ------------ ------------
Net increase (decrease) in net assets (11,322,348) 830,837 (10,307,420) (2,621,484)
Net assets at beginning of period 1,290,634,676 1,289,803,839 951,655,520 954,277,004
-------------- -------------- ------------ ------------
Net assets at end of period $1,279,312,328 $1,290,634,676 $941,348,100 $951,655,520
============== ============== ============ ============
Balance of undistributed net investment income
at end of period $ 1,566,234 $ 1,196,041 $ 1,470,946 $ 1,056,091
============== ============== ============ ============
See accompanying notes to financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NMO
Six months ended Year ended
4/30/97 10/31/96
- ------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 29,126,771 $ 58,107,078
Net realized gain (loss) from investment
transactions (notes 1 and 3) (143,289) (71,985)
Net change in unrealized appreciation or
depreciation of investments (9,625,345) (4,137,414)
-------------- ------------
Net increase in net assets from operations 19,358,137 53,897,679
-------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (23,231,519) (46,933,049)
Preferred shareholders (5,754,063) (11,775,782)
-------------- ------------
Decrease in net assets from distributions
to shareholders (28,985,582) (58,708,831)
-------------- ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions -- --
-------------- -------------
Net increase (decrease) in net assets (9,627,445) (4,811,152)
Net assets at beginning of period 1,000,987,174 1,005,798,326
------------- --------------
Net assets at end of period $ 991,359,729 $1,000,987,174
============== =============
Balance of undistributed net investment income
at end of period $ 1,207,055 $ 1,065,866
============== ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At April 30, 1997, the National Funds (the "Funds")
covered in this report and their corresponding New York
Stock Exchange symbols are Nuveen Performance Plus
Municipal Fund, Inc. (NPP), Nuveen Municipal Advantage
Fund, Inc.(NMA) and Nuveen Municipal Market Opportunity
Fund, Inc. (NMO).
Each Fund invests primarily in a diversified portfolio
of municipal obligations issued by state and local
government authorities. The Funds are registered under
the Investment Company Act of 1940 as closed-end,
diversified management investment companies.
The following is a summary of significant accounting
policies followed by the Funds in the preparation of
their financial statements in accordance with generally
accepted accounting principles.
Securities Valuation The prices of municipal bonds in each Fund's investment
portfolio are provided by a pricing service approved and
supervised by the Fund's Board of Directors When price
quotes are not readily available (which is usually the
case for municipal securities), the pricing service
establishes fair market value based on yields or prices
of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from
securities dealers and general market conditions.
Temporary investments in securities that hav variable
rate and demand features qualifying them as short-term
securities are traded and valued at amortized cost.
Securities Transactions Securities transactions are recorded on a trade date
basis. Realized gains and losses from such
transactions are determined on the specific
identification method. Securities purchased or sold
on a when-issued or delayed delivery basis may be
settled a month or more after the transaction date.
The securities so purchased are subject to market
fluctuation during this period. The Funds have
instructed the custodian to segregate assets in a
separate account with a current value at least equal
to the amount of their purchase commitments.
At April 30, 1997, NMO had purchase commitments of
$2,210,323. There were no such purchase commitments in
either of the other Funds.
<PAGE>
Interest Income Interest income is determined on the basis of interest
accrued, adjusted for amortization of premiums and
accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Federal Income Taxes Each Fund is a separate taxpayer for federal income
tax purposes. Each Fund intends to comply with the
requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute
all of its tax-exempt net investment income, in
addition to any significant amounts of net realized
capital gains and/or market discount realized from
investment transactions. The Funds currently
consider significant net realized capital gains and/or
market discount as amounts in excess of $.01 per
Common share. Furthermore, each Fund intends to
satisfy conditions which will enable interest from
municipal securities, which is exempt from regular
federal income tax, to retain such tax-exempt status
when distributed to shareholders of the Funds. Net
realized capital gain and market discount
distributions are subject to federal taxation.
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 distributions are determined
in accordance with federal income tax regulations,
which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions
as a result of these differences may occur and will be
classified as either distributions in excess of net
investment income, distributions in excess of net
realized gains and/or distributions in excess of net
ordinary taxable income from investment transactions,
where applicable.
<PAGE>
<TABLE>
Preferred Shares The Funds have issued and outstanding $25,000
stated value Preferred shares. Each Fund's Preferred
shares are issued in more than one Series. The
dividend rate on each Series may change every seven
days, as set by the Auction Agent, except for 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:
<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>
Derivative Financial The Funds may invest in certain derivative financial
Instruments 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 six months ended
April 30, 1997.
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>
<TABLE>
2. FUND SHARES
Transactions in Common shares were as follows
NPP NMA
<CAPTION>
Six months ended Year ended Six months ended Year ended
4/30/97 10/31/96 4/30/97 10/31/96
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders due to reinvestment
of distributions 55,281 586,309 -- 75,777
====== ======= ====== ======
NMO
<CAPTION>
Six months ended Year ended
4/30/97 10/31/96
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares issued to shareholders due to reinvestment
of distributions -- --
===== =====
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of
investments in municipal securities and temporary
municipal investments during the six months ended
April 30, 1997, were as follows:
NPP NMA NMO
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $70,117,101 $25,268,867 $54,058,980
Temporary municipal investments 51,700,000 40,340,000 20,300,000
SALES AND MATURITIES
Investments in municipal securities 62,104,212 24,730,731 46,054,876
Temporary municipal investments 53,200,000 38,240,000 22,800,000
=========== =========== ===========
At April 30, 1997, the identified cost of investments
owned for federal income tax purposes was the same as
the cost for financial reporting purposes for each
Fund.
At October 31, 1996, the Funds' last fiscal year end,
the Funds had unused capital loss carryovers available
for federal income tax purposes to be applied against
future capital gains, if any. If not applied, the
carryovers will expire as follows:
NPP NMA NMO
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
<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>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On May 1, 1997, the Funds declared Common share
dividend distributions from their tax-exempt net
investment income that were paid June 2, 1997, to
shareholders of record on May 15, 1997, as follows:
NPP NMA NMO
<CAPTION>
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Dividend per share $.0840 $.0855 $.0865
====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at April 30, 1997, were
as follows:
NPP NMA NMO
<CAPTION>
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized:
appreciation $59,212,499 $56,032,908 $66,805,072
depreciation (1,231,743) (1,920,568) (450,252)
------------ ------------ ------------
Net unrealized appreciation $57,980,756 $54,112,340 $66,354,819
=========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS
WITH AFFILIATES
Under the Funds' investment management agreements with
Nuveen Advisory Corp. (the "Adviser"), a wholly owned
subsidiary of The John Nuveen Company, each Fund pays
to the Adviser an annual management fee, payable
monthly, at the rates set forth below, which are based
upon the average daily net asset value of each Fund:
Average daily net asset value Management fee
<CAPTION>
- -------------------------------------------------------------------------------------
<S> <C>
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
The fee compensates the Adviser for overall investment
advisory and administrative services and general
office facilities. The Funds pay no compensation
directly to those Directors who are affiliated with
the Adviser or to their officers, all of whom receive
remuneration for their services to the Funds from the
Adviser.
</TABLE>
<PAGE>
<TABLE>
7. COMPOSITION OF NET ASSETS At April 30, 1997, net
assets consisted of:
NPP NMA NMO
<CAPTION>
- ----------------------------------------------------------------------------------------------------
<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 591,586 420,972 447,621
Paid-in surplus 825,814,006 586,950,602 623,756,849
Balance of undistributed net investment income 1,566,234 1,470,946 1,207,055
Accumulated net realized gain (loss) from
investment transactions (6,640,254) (1,606,760) (406,615)
Net unrealized appreciation of investments 57,980,756 54,112,340 66,354,819
-------------- ------------ ------------
Net assets $1,279,312,328 $941,348,100 $991,359,729
============== ============ ============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
============== ============ ============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which
include general obligation, escrowed and revenue
bonds. At April 30, 1997, the revenue sources by
municipal purpose for these investments, expressed as
a percent of total investments, were as follows:
NPP NMA NMO
<CAPTION>
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Revenue Bonds:
Housing Facilities 22% 15% 17%
Pollution Control Facilities 10 8 8
Health Care Facilities 3 9 5
Electric Utilities 8 8 6
Transportation 3 5 6
Lease Rental Facilities 2 1 5
Educational Facilities 1 4 4
Water / Sewer Facilities 3 3 3
Other 8 3 5
General Obligation Bonds 7 5 7
Escrowed Bonds 33 39 34
----- ----- -----
100% 100% 100%
===== ===== =====
</TABLE>
<PAGE>
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 (54% for NPP, 61% for NMA and 48% 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
(Unaudited)
Selected data for a Common share outstanding throughout each period is as
follows:
Dividends from tax-exempt
Operating performance net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments shareholders shareholders+
NPP
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $15.070 $ .627 $ (.216) $ (.504) $(.117)
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)
Five months ended
10/31/92 14.960 .574 (.067) (.455) (.082)
Year ended 5/31:
1992 14.280 1.395 .608 (1.042) (.281)
1991 13.680 1.387 .628 (1.025) (.390)
6/22/89 to
5/31/90 14.050 1.120 (.274) (.788) (.265)
<CAPTION>
NMA
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 15.480 .644 (.260) (.513) (.121)
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
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders+ discounts of period period
NPP
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $ -- $ -- $ -- $14.860 $14.875
Year ended 10/31:
1996 -- -- -- 15.070 15.125
1995 -- -- -- 15.210 15.250
1994 -- -- -- 14.400 13.375
1993 -- -- -- 15.950 16.625
Five months ended
10/31/92 -- -- -- 14.930 15.000
Year ended 5/31:
1992 -- -- -- 14.960 15.000
1991 -- -- -- 14.280 14.625
6/22/89 to
5/31/90 -- -- (.163) 13.680 14.000
<CAPTION>
NMA
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 -- -- -- 15.230 15.188
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>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets*** net assets*** rate
<CAPTION>
NPP
<S> <C> <C> <C> <C> <C> <C>
Six months ended
4/30/97 1.72% 1.97% $1,279,312 .77%* 5.81%* 5%
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
Five months ended
10/31/92 2.94 2.81 1,254,800 .74* 6.16* 5
Year ended 5/31:
1992 9.94 12.50 1,252,009 .74 6.44 5
1991 12.30 12.42 1,204,809 .75 6.63 14
6/22/89 to
5/31/90 (1.45) 3.07 1,166,027 .71* 6.57* 22
<CAPTION>
NMA
<S> <C> <C> <C> <C> <C> <C>
Six months ended
4/30/97 3.85 1.71 941,348 .78* 5.76* 3
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 66.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
Selected data for a Common share outstanding throughout each period is as
follows:
Dividends from tax-exempt
Operating performance net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments shareholders shareholders+
<CAPTION>
NMO
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $15.660 $ .651 $ (.213) $ (.519) $(.129)
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)
Distributions from capital gains
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders+ discounts of period period
<CAPTION>
NMO
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $ -- $ -- $ -- $15.450 $15.250
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>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets*** net assets*** rate
<CAPTION>
NMO
<S> <C> <C> <C> <C> <C> <C>
Six months ended
4/30/97 3.46% 1.99% $ 991,360 .77%* 5.88%* 5%
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.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes in
stock price per share. Total Return on Net Asset Value is the combination of
reinvested dividend income, reinvested capital gains distributions, if any, and
changes in net asset value per share.
*** Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
+ The amounts shown are based on Common share equivalents.
</FN>
</TABLE>
<PAGE>
Serving investors for generations
Photographic image of John Nuveen Sr., founder of Nuveen.
Since our founding in 1898, John Nuveen & Co. Incorporated has been
synonymous with investments that withstand the test of time. Today, we offer
a broad range of investments designed for mature investors whose portfolios
are the principal source of their ongoing financial security. More than 1.3
million investors have entrusted Nuveen to help the maintain the lifestyle
they currently enjoy.
A value investing approach--purchasing securities of strong companies and
communities that represent good long-term value--is the cornerstone of Nuveen's
investment philosophy. It is a careful, long-term strategy that offers the
potential for attractive returns with moderated risk. Successful value investing
begins with in-depth research and a discerning eye for marketplace opportunity.
Nuveen's team of investment professionals is backed by the discipline, resources
and expertise of almost a century of investment experience, including one of the
most recognized municipal research departments in the industry.
To meet the unique circumstances and financial planning needs of mature
investors, Nuveen offers a wide array of taxable and tax-free investment
products--including equity and fixed-income mutual funds, unit trusts,
exchange-traded funds, individual managed account services, and cash management
products.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
FSA-2-4.97
