<PAGE>
MUNICIPAL ADVANTAGE FUND INC.
September 5, 1997
Dear Shareholder:
The Fund had an excellent fiscal third quarter ended July 31, 1997,
significantly exceeding its benchmark, the Lehman Brothers Municipal Bond Index
(Lehman Index), and ranking as one of the top funds in its industry category for
the period.
The Fund's total return on net asset value (dividends plus change in net
asset value per share, assuming reinvestment of dividends) was 8.5% in the
quarter, surpassing both the 5.4% return of the Lehman Index and the 6.9%
average total return for the leveraged closed-end general municipal bond funds
monitored by Lipper Analytical Services, Inc. The Fund's performance was seventh
among the 64 funds in this Lipper universe.
For the nine months ended July 31, 1997, the Fund provided a total return
of 10.5% at net asset value (NAV), outpacing the 7.5% return of the Lehman
Index.
PERFORMANCE AT MARKET PRICE
The Fund provided even higher returns at market than it did at NAV. Return
at market includes any price change for the Fund's common shares on the New York
Stock Exchange and is the actual return received by shareholders.
The Fund's return at market was 10.5% in the third fiscal quarter, assuming
reinvestment of dividends. For the nine months, return at market was 16.6%, more
than double the 7.5% return of the Lehman Index.
POSITIVE MARKET ENVIRONMENT
During the quarter, inflation remained low, interest rates declined and
bond prices rose, creating a favorable environment for investors in tax-exempt
municipal securities. We capitalized on these conditions by selling bonds in the
Fund's portfolio as their market price reached par (face value), reinvesting the
proceeds in noncallable issues and bonds trading at a discount to par. In a
rising market, noncallable and discount bonds tend to outperform issues trading
at par or higher.
The Fund's performance benefited also from an emphasis on investment
quality. As of July 31, 1997, of the long-term securities owned by the Fund,
84.8% of the assets were rated A or better by Standard & Poor's or Moody's. This
compared with 80.7% nine months earlier. In selecting securities, we look for
sector, maturity and quality groups of the municipal bond market that we believe
provide the highest yield at the lowest price with the least amount of risk. We
have increased the Fund's holdings of higher-quality securities because we
believe they offer attractive value. Yield spreads--that is, the difference
between the yields of higher-rated and lower-rated issues--have narrowed.
Consequently, many lower-rated issues do not offer sufficient yield at this time
to justify their additional risk, in our view.
FUND OBJECTIVE AND PREFERRED STOCK COSTS
The Fund's objective is to provide a high level of income exempt from
regular federal income tax by investing in a diversified portfolio of quality
municipal securities. The Fund uses leverage from its preferred shares to
generate additional income.
At the latest auction on August 25, 1997, the Fund sold 91-day auction rate
preferred stock at an annual dividend rate of 3.75%, down from 3.85% on the
previous 91-day issue. Proceeds from the preferred stock are invested in
municipal bonds that yield more than the cost of the preferred, with the Fund's
common shares realizing the difference. Besides adding to income, the use of
leverage tends to magnify capital appreciation in a rising bond market and
magnify capital losses in a declining market.
<PAGE>
DIVIDENDS AND YIELD
The Fund paid regular monthly dividends of 6.65 cents per common share
during the third fiscal quarter, or a total of 19.95 cents per share in the
three-month period. The yield on the Fund's common shares (based on the $13.1875
per share closing market price on July 31, 1997 and the annualized current
monthly dividend rate of 6.65 cents per common share) was 6.1% at the end of the
quarter. For an investor in the top federal tax bracket of 39.6%, the Fund's
yield was equivalent to 10.0% on a taxable basis.
PORTFOLIO ANALYSIS
We seek to control risk not only by emphasizing investment quality, but
also by diversifying the Fund's portfolio across states and market sectors. The
five largest portfolio positions by state as of July 31, 1997 were: New York,
17.1%; California, 10.8%; Texas, 10.4%; Illinois, 6.1%; and Colorado, 5.8%. The
five largest market sectors in the portfolio were: general obligation, 16.9%;
health and hospital, 16.5%; housing, 16.5%; water and sewer, 15.3%; and airline
and airport, 8.3%. There were no significant changes during the third quarter in
allocations by state or market sector.
At July 31, 1997, almost the entire portfolio--i.e., 98.9% of assets based
on market value--was invested in long-term securities, with the remainder in
cash and cash equivalents. The average maturity of the portfolio at July 31,
1997 was 21.5 years.
DISCOUNT
The Fund's common shares continue to trade at a discount to NAV, as is true
of most closed-end municipal bond funds. However, because the market price has
recently increased faster than the NAV, the discount narrowed to 10.8% on July
31, 1997 from 12.3% three months earlier and 14.8% three months before that. As
we have said many times previously, one way for owners of the Fund's common
shares to capitalize on the discount and acquire an interest in quality
securities at a price well below NAV is by reinvesting dividends, as many of the
Fund's shareholders do.
RECORDED UPDATE
For a recorded periodic update, reviewing the municipal bond markets and
containing specific information regarding the Fund and its portfolio, including
largest holdings, asset allocation, NAV, performance and other information,
please call our toll-free number, (800) 421-4777.
SUMMARY
We are pleased with the Fund's performance in both the third quarter and
first nine months of fiscal 1997. These results were in the upper echelon of the
universe of leveraged closed-end general municipal bond funds, indicating that
our disciplined investment approach has worked well.
We remain dedicated to meeting your investment needs through the careful
selection of a diversified portfolio of quality municipal securities and the use
of leverage to generate additional income. We at the Fund, along with the Fund's
manager, Advantage Advisers, Inc., and its adviser, OpCap Advisors, thank you
for investing with us.
Sincerely,
/s/ Mark C. Biderman
----------------------
Mark C. Biderman
President
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
JULY 31, 1997
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM INVESTMENTS--99.2%
ALABAMA--1.9%
$1,000,000 Alabama State Docks Department Facility Revenue
(MBIA insured),
6.15%, 10/1/14............................................ Aaa/AAA $ 1,081,380
2,000,000 DCH Health Care Authority, Health Care Facilities Revenue,
5.70%, 6/1/15............................................. A1/A+ 2,054,280
----------
3,135,660
----------
CALIFORNIA--10.8%
1,000,000 Burbank Redevelopment Agency,
6.00%, 12/1/13............................................ Baa1/A- 1,043,840
2,500,000 California Health Facilities Financing Authority Revenue,
6.25%, 3/1/21............................................. Aa3/AA 2,638,900
1,000,000 California State Public Works Board, Lease Revenue,
6.30%, 10/1/10............................................ A/A 1,102,290
1,000,000 Lafayette Elementary School District (FSA insured),
5.90%, 5/15/17............................................ Aaa/AAA 1,065,670
4,000,000 Los Angeles Harbor Department Revenue,
5.375%, 11/1/23........................................... Aa3/AA 3,980,120
1,000,000 Los Angeles Regional Airports Revenue,
6.70%, 1/1/22............................................. NR/A- 1,070,300
1,000,000 Madera County Certificates of Participation (MBIA insured),
6.125%, 3/15/23........................................... Aaa/AAA 1,074,750
2,000,000 San Diego Public Facilities Financing Authority, Sewer
Revenue (FGIC insured),
5.25%, 5/15/27............................................ Aaa/AAA 1,979,020
1,000,000 San Francisco City & County Certificates of Participation
(FSA insured),
5.60%, 4/1/16............................................. Aaa/AAA 1,030,010
1,000,000 Southern California Metropolitan Water District, Waterworks
Revenue (MBIA insured),
5.00%, 7/1/27............................................. Aaa/AAA 966,830
1,500,000 Student Education Loan Marketing Corporation,
Student Loan Revenue,
7.00%, 7/1/10............................................. NR/A 1,632,960
----------
17,584,690
----------
3,085,000 COLORADO--5.8%
Colorado Health Facilities Authority Revenue (MBIA insured),
5.95%, 5/15/12............................................ Aaa/AAA 3,269,452
Denver City & County Airport Revenue (MBIA insured),
1,500,000 5.60%, 11/15/25........................................... Aaa/AAA 1,516,230
4,500,000 5.75%, 11/15/17............................................. Aaa/AAA 4,665,825
----------
9,451,507
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
JULY 31, 1997
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM INVESTMENTS (CONT'D.)
FLORIDA--2.4%
$2,000,000 Dade County Water and Sewer Revenue (FGIC insured),
5.25%, 10/1/26............................................ Aaa/AAA $1,979,220
2,000,000 Florida State Board of Education,
5.00%, 6/1/20............................................. Aa2/AA+ 1,933,780
----------
3,913,000
----------
GEORGIA--1.5%
1,000,000 Savannah Hospital Authority Revenue,
6.125%, 7/1/12............................................ A2/NR 1,072,960
1,260,000 Toombs County Hospital Authority Revenue,
7.00%, 12/1/17............................................ NR/BBB 1,359,011
----------
2,431,971
----------
HAWAII--1.0%
1,500,000 Hawaii General Obligation Bonds,
5.125%, 2/1/09............................................ Aa3/A+ 1,560,195
----------
ILLINOIS--6.1%
3,500,000 Du Page Water Commission, Water Revenue,
5.25%, 5/1/14............................................. Aa1/AA 3,528,525
2,800,000 Illinois Health Facilities Authority Revenue,
9.00%, 11/15/15........................................... Baa1/NR 3,328,948
2,840,000 Illinois Housing Development Authority Revenue,
6.70%, 8/1/25............................................. Aa3/AA 3,009,093
----------
9,866,566
----------
KENTUCKY--1.0%
500,000 Jefferson County Health Facilities Revenue (MBIA insured),
5.25%, 7/1/22............................................. Aaa/AAA 496,540
1,000,000 Louisville & Jefferson Counties Metropolitan Sewer District
(AMBAC insured),
6.50%, 5/15/24............................................ Aaa/AAA 1,122,850
----------
1,619,390
----------
LOUISIANA--1.0%
1,500,000 New Orleans General Obligation Bonds (AMBAC insured),
6.125%, 10/1/16........................................... Aaa/AAA 1,627,155
----------
MAINE--.6%
1,000,000 Maine State Housing Authority, Mortgage Purchase,
7.55%, 11/15/22........................................... Aa2/NR 1,058,960
----------
MARYLAND--1.2%
1,820,000 Maryland State Community Development Administration
(FHA insured),
7.60%, 4/1/23............................................. Aa/NR 1,915,987
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
JULY 31, 1997
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM INVESTMENTS (CONT'D.)
MASSACHUSETTS--3.5%
$2,000,000 Massachusetts Bay Transportation Authority Revenue
(FGIC insured),
5.00%, 3/1/27............................................. Aaa/AAA $1,933,980
2,250,000 Massachusetts State Health & Education Facilities Authority
Revenue,
6.25%, 12/1/22............................................ A1/A 2,408,940
1,175,000 Massachusetts State Water Pollution Abatement Trust,
6.375%, 2/1/15............................................ Aa3/AA+ 1,284,204
----------
5,627,124
----------
MICHIGAN--4.5%
1,700,000 Dearborn School District,
6.00%, 5/1/14............................................. Aa2/AA 1,804,193
1,000,000 Grand Rapids Water Supply Systems Revenue (FGIC insured),
6.50%, 1/1/15............................................. Aaa/AAA 1,086,800
2,000,000 Michigan State Hospital Finance Authority Revenue,
8.125%, 10/1/21........................................... Baa2/BBB 2,354,060
1,000,000 Michigan State Pollution Control Revenue,
6.20%, 9/1/20............................................. A3/A- 1,053,970
1,000,000 Ypsilanti School District (FGIC insured),
5.375%, 5/1/26............................................ Aaa/AAA 1,003,300
----------
7,302,323
----------
MINNESOTA--4.1%
Minnesota State Housing Finance Agency,
1,620,000 6.00%, 2/1/14............................................... Aa2/AA 1,671,856
2,905,000 6.10%, 8/1/22............................................... Aa2/AA 2,982,564
1,955,000 6.25%, 8/1/22............................................... Aa2/AA 1,975,273
----------
6,629,693
----------
NEVADA--4.6%
2,000,000 Clark County General Obligation Bonds
(MBIA insured),
6.00%, 6/1/13............................................. Aaa/AAA 2,130,820
2,000,000 Clark County Passenger Facility Charge Revenue
(MBIA insured),
5.75%, 7/1/23............................................. Aaa/AAA 2,057,740
1,000,000 Las Vegas General Obligation Bonds (FGIC insured),
6.60%, 10/1/12 (Pre-refunded 4/1/02) (B).................. Aaa/AAA 1,116,250
Nevada Housing Division Revenue (FHA insured),
1,055,000 6.20%, 4/1/17............................................... Aaa/NR 1,100,914
1,000,000 6.20%, 10/1/28.............................................. Aaa/NR 1,037,440
----------
7,443,164
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
JULY 31, 1997
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM INVESTMENTS (CONT'D.)
NEW HAMPSHIRE--1.9%
$1,000,000 New Hampshire Higher Educational & Health Facilities
Authority Revenue,
6.125%, 10/1/13........................................... Baa2/NR $1,030,640
New Hampshire State Housing Finance Authority,
985,000 6.50%, 7/1/14............................................... Aa3/NR 1,036,387
1,000,000 6.90%, 7/1/19............................................... Aa/NR 1,058,550
----------
3,125,577
----------
NEW JERSEY--2.3%
1,000,000 New Jersey Economic Development Authority,
Heating & Cooling Revenue,
6.20%, 12/1/07............................................ NR/BBB- 1,045,380
2,670,000 North Hudson Sewer Authority Revenue (FGIC insured),
5.125%, 8/1/22............................................ Aaa/AAA 2,627,494
----------
3,672,874
----------
NEW YORK--17.1%
1,750,000 Metropolitan Transportation Authority, Transportation
Facilities Revenue,
6.00%, 7/1/14............................................. Baa1/BBB+ 1,832,880
1,000,000 Municipal Assistance Corporation, City of Troy (MBIA
insured),
5.00%, 1/15/16............................................ Aaa/AAA 970,650
New York City General Obligation Bonds,
2,000,000 5.75%, 2/1/17............................................... Baa1/BBB+ 2,057,160
1,500,000 5.75%, 2/1/19............................................... Baa1/BBB+ 1,540,455
1,000,000 5.875%, 3/15/18............................................. Baa1/BBB+ 1,035,490
1,000,000 6.00%, 8/1/14............................................... Baa1/BBB+ 1,061,320
1,000,000 6.00%, 8/1/16............................................... Baa1/BBB+ 1,056,930
1,000,000 6.95%, 8/15/12 (MBIA insured)............................... Aaa/AAA 1,139,420
2,270,000 7.00%, 10/1/09.............................................. Baa1/BBB+ 2,518,179
3,000,000 New York City Industrial Development Agency,
Special Facilities Revenue,
6.125%, 1/1/24............................................ A/A 3,168,240
3,550,000 New York City Municipal Water Finance Authority,
Water & Sewer Systems Revenue,
6.00%, 6/15/25............................................ A2/A- 3,740,883
New York State Dormitory Authority Revenue,
1,500,000 5.75%, 5/15/24.............................................. Baa1/BBB+ 1,517,475
1,500,000 6.75%, 7/1/24 (MBIA insured) (Pre-refunded 7/1/04) (B)...... Aaa/AAA 1,737,210
1,000,000 7.65%, 8/1/30 (FHA insured)................................. NR/AAA 1,098,760
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
JULY 31, 1997
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM INVESTMENTS (CONT'D.)
NEW YORK (CONT'D.)
$1,500,000 New York State Local Government Assistance Corporation,
6.50%, 4/1/20............................................. A3/A $1,618,320
1,000,000 New York State Medical Care Facilities,
Finance Agency Revenue,
6.50%, 8/15/24............................................ Baa1/BBB+ 1,093,440
500,000 New York State Urban Development Corporation,
Correctional Capital Facility,
5.375%, 1/1/25............................................ Baa1/BBB 493,270
----------
27,680,082
----------
NORTH CAROLINA--3.0%
5,000,000 North Carolina Municipal Power Agency, No. 1 Catawba
Electric Revenue (MBIA insured),
5.00%, 1/1/18............................................. Aaa/AAA 4,814,050
----------
OHIO--1.6%
2,500,000 Lucas County Hospital Revenue (MBIA insured),
5.45%, 8/15/14............................................ Aaa/AAA 2,556,400
----------
PENNSYLVANIA--.9%
1,500,000 Philadelphia Water and Wastewater Revenue (MBIA insured),
5.25%, 6/15/23............................................ Aaa/AAA 1,470,780
----------
SOUTH CAROLINA--1.8%
1,500,000 Spartanburg County Health Services Revenue (MBIA insured),
5.125%, 4/15/17........................................... Aaa/AAA 1,477,035
1,450,000 York County Industrial Revenue,
5.70%, 1/1/24............................................. A2/A+ 1,476,883
----------
2,953,918
----------
SOUTH DAKOTA--.7%
1,000,000 Heartland Consumers Power District Revenue,
7.00%, 1/1/16............................................. Aaa/AAA 1,187,650
----------
TENNESSEE--1.3%
2,000,000 Tennessee Housing Development Agency,
6.375%, 7/1/22............................................ Aa2/AA 2,091,940
----------
TEXAS--10.4%
1,000,000 Alliance Airport Authority Revenue,
6.375%, 4/1/21............................................ Baa2/BBB 1,052,890
1,000,000 Austin Hotel Occupancy Tax Revenue (AMBAC insured),
5.125%, 11/15/19.......................................... Aaa/AAA 973,360
2,300,000 Carrollton Independent School District,
5.00%, 2/15/17............................................ Aaa/AAA 2,254,989
1,000,000 Denton County General Obligation Bonds (AMBAC insured),
5.00%, 7/15/16............................................ Aaa/AAA 979,590
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
JULY 31, 1997
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM INVESTMENTS (CONT'D.)
TEXAS (CONT'D.)
$1,500,000 Harris County Port Authority General Obligation Bonds,
5.75%, 10/1/17............................................ Aa2/AA $1,538,535
Harris County Toll Road Subordinated Lien,
2,600,000 5.00%, 8/15/21.............................................. Aa2/AA 2,511,756
1,000,000 6.50%, 8/15/15.............................................. Aa2/AA 1,102,850
Houston Water Conveyance System, Certificates of
Participation
(AMBAC insured),
1,000,000 6.25%, 12/15/14............................................. Aaa/AAA 1,156,610
1,400,000 7.50%, 12/15/15............................................. Aaa/AAA 1,813,364
1,000,000 Houston Water and Sewer Systems Revenue (FGIC insured),
5.25%, 12/1/22............................................ Aaa/AAA 990,250
San Antonio Electric & Gas Revenue,
1,010,000 6.00%, 2/1/14 (Pre-refunded 2/1/99) (B)..................... Aa1/AA 1,054,379
1,490,000 6.00%, 2/1/14............................................... Aa1/AA 1,536,399
----------
16,964,972
----------
UTAH--1.0%
Utah Housing Finance Agency (FHA insured),
1,105,000 6.35%, 7/1/11............................................... Aa2/NR 1,159,322
395,000 6.55%, 7/1/26............................................... Aaa/NR 417,061
----------
1,576,383
----------
VERMONT--1.1%
1,690,000 Vermont Housing Finance Agency (FHA insured),
7.85%, 12/1/29............................................ A1/A- 1,772,134
----------
VIRGINIA--2.8%
4,200,000 Virginia Housing Development Authority,
6.50%, 1/1/13............................................. Aa1/AA+ 4,476,654
----------
WASHINGTON--1.4%
1,160,000 Seattle Museum Development Authority,
6.30%, 7/1/13............................................. Aa1/AA+ 1,243,010
1,000,000 Washington State General Obligation Bonds (FGIC insured),
5.00%, 1/1/22............................................. Aaa/AAA 972,480
----------
2,215,490
----------
WEST VIRGINIA--.6%
1,000,000 Braxton County Solid Waste Disposal Revenue,
6.125%, 4/1/26............................................ A2/A 1,045,440
----------
WISCONSIN--1.3%
2,000,000 Janesville Pollution Control Revenue,
5.55%, 4/1/09............................................. A3/A- 2,084,340
------------
Total Long-Term Investments (cost--$151,479,232)............ $160,856,069
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
JULY 31, 1997
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--1.1%
ALABAMA--.1%
$ 100,000 Phenix County Industrial Development Revenue, VRDN,
3.70%, 8/1/97............................................. VMIG1/NR $ 100,000
------------
GEORGIA--1.0%
1,700,000 Burke County Pollution Control Development Revenue, VRDN,
3.65%, 8/1/97............................................. VMIG1/A1 1,700,000
------------
Total Short-Term Investments (cost--$1,800,000)............. $ 1,800,000
------------
Total Investments (cost--$153,279,232)...................... 100.3% $162,656,069
Liabilities in Excess of Other Assets....................... (.3) (410,438)
----------- ------------
Total Net Assets............................................ 100.0% $162,245,631
----------- ------------
----------- ------------
</TABLE>
- --------------------------------------------------------------------------------
VRDN--Variable rate demand notes are instruments whose interest rates change on
a specified date (such as a coupon date or interest payment date) and/or
whose interest rates vary with changes in a designated base rate (such as
the prime interest rate). Maturity date shown is date of next rate change.
(A) Investment debt securities are valued by an independent pricing service as
authorized by the Board of Directors.
(B) Bonds which are pre-refunded are collateralized by U.S. Government or other
eligible securities which are held in escrow and are used to pay principal
and interest and to retire the bonds in full at the earliest refunding date.
<PAGE>
MUNICIPAL ADVANTAGE FUND INC.
DIRECTORS AND PRINCIPAL OFFICERS
Mark C. Biderman
Director, Chairman of the Board and President
Raymond D. Horton
Director
Robert L. Rosen
Director
Jeswald W. Salacuse
Director
Robert I. Kleinberg
Director and Secretary
Robert A. Blum
Assistant Secretary
INVESTMENT MANAGER
Advantage Advisers, Inc.
One World Financial Center
New York, NY 10281
INVESTMENT ADVISER
OpCap Advisors
One World Financial Center
New York, NY 10281
TRANSFER AGENT, DIVIDEND PAYING AGENT AND REGISTRAR
BostonEquiServe L.P.
P.O. Box 8200
Boston, MA 02266-8200
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, NY 10036
This report, including the financial information herein, is transmitted to the
shareholders of Municipal Advantage Fund Inc. for their information. It is not a
prospectus, circular or representation intended for use in the purchase of
shares of the Fund or any securities mentioned in this report.
