<PAGE>
MUNICIPAL ADVANTAGE FUND INC.
September 1, 1998
Dear Shareholder:
The Municipal Advantage Fund delivered a strong performance in the fiscal
third quarter ended July 31, 1998. The Fund's total return of 3.1% on net asset
value (NAV) exceeded both the 2.2% return for the Lehman Brothers Municipal Bond
Index (Lehman Index) and the average total return of 2.6% for the leveraged
closed-end general municipal bond funds monitored by Lipper Analytical Services,
Inc. Total return consists of dividends plus change in NAV per share and assumes
reinvestment of dividends. The Fund's quarterly performance ranked ninth among
the 66 funds in this Lipper universe.
The Fund's total return at market--that is, dividends plus the price change
of the Fund's common shares on the New York Stock Exchange, assuming
reinvestment of dividends--was an even stronger 5.8%.
PERFORMANCE FOR NINE AND TWELVE MONTHS
The Fund provided favorable returns, as well, over the first three fiscal
quarters ended July 31, 1998 and for the 12 months ended July 31, 1998. For the
three quarters, the Fund's total return of 6.4% on NAV surpassed the 5.1% return
of the Lehman Index. The Fund's return at market for the three quarters was
8.5%.
For the 12 months ended July 31, 1998, the Fund's total return of 6.8% on
NAV exceeded the 6.0% return for the Lehman Index and the 6.0% average total
return for the leveraged closed-end general municipal bond funds monitored by
Lipper. The Fund's 12-month performance was 11th among the 65 funds in this
Lipper universe. At market, the Fund's 12-month return was 10.1%.
FOCUSING ON NON-CALLABLE AND DISCOUNT BONDS
We are pleased with these results, which were achieved by remaining
disciplined in our investment philosophy. Bond prices have been strong for most
of the past year, driven by low inflation and declining long-term interest
rates. Throughout the third quarter, we continued our strategy of selling bonds
in the Fund's portfolio as their market price reached par (face value),
reinvesting the proceeds in non-callable issues and bonds trading at a discount
to par. In a rising market, non-callable and discount bonds tend to outperform
issues trading at par or higher.
We also maintained the high quality level of the Fund's portfolio. Because
there currently is only a modest yield difference between higher-rated and
lower-rated municipal securities, we see little incentive at this time to own
lower-rated bonds. As of July 31, 1998, 92.2% of the long-term securities owned
by the Fund were rated A or better by Standard & Poor's or Moody's.
We remain positive in our outlook for municipal securities. At the end of
July 1998, yields on long-term triple-A tax-exempt municipal securities were
equal to about 92% of the yield on long U.S. Government bonds, one of the
highest ratios in memory, indicating the attractive relative value of municipal
securities.
DIVIDEND PAYMENTS AND YIELD
In both the fiscal quarter and nine months, the Fund continued to meet its
objective of providing a high level of income exempt from regular federal income
tax. The Fund paid regular monthly dividends of 6.65 cents per common share, or
a total 19.95 cents per common share for the quarter and 59.85 cents per share
for the fiscal nine months.
The yield on the Fund's common shares (based on the $13.6875 per share
closing market price on July 31, 1998 and the annualized current monthly
dividend rate of 6.65 cents per common share) was 5.8% at the end of July. This
compares with a yield of 5.7% for long-term U.S. Government bonds. For an
investor in the top federal tax bracket of 39.6%, the Fund's yield was
equivalent to 9.7% on a taxable basis.
1
<PAGE>
PREFERRED STOCK COSTS
The Fund uses leverage from its preferred shares to help generate income
for the holders of its common shares. At the latest auction on August 10, 1998,
the Fund sold 28-day auction rate preferred stock at an annual dividend rate of
3.38%, compared with 3.39% on the previous 28-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.
PORTFOLIO ANALYSIS
At the end of July 1998, at market value, 99.9% of the Fund's portfolio was
invested in long-term securities and 0.1% in cash equivalents. The average
maturity of the portfolio was 21.7 years.
In selecting securities for the Fund, we look for sector, maturity and
quality groups of the municipal bond market that we believe provide the best
relative value--that is, the highest yield at the lowest price with the least
amount of risk. The five largest portfolio positions by state as of July 31,
1998 were: New York, representing 15.1% of the Fund's net assets; Texas, 11.4%;
California, 9.6%; Massachusetts, 7.0%; and Illinois, 5.6%. The five largest
market sectors were: health and hospital, 21.3% of the Fund's net assets;
housing, 17.4%; general obligation, 16.8%; water and sewer, 12.1%; and airline
and airport, 8.6%. There was no significant change in allocation during the
fiscal third quarter.
DISCOUNT
The Fund's common shares trade at a discount to NAV, as is true of many
closed-end municipal bond funds. This discount narrowed to 8.5% on July 31, 1998
from 10.8% three months earlier. 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 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) 223-2413.
SUMMARY
We remain dedicated to meeting the needs of shareholders by providing a
high level of income exempt from federal income tax. We at the Fund, together
with Value Advisors LLC, the Fund's investment manager, and OpCap Advisors,
which provides advisory and administrative services to the Fund, thank you for
your continued support.
Sincerely,
/s/ Stephen Treadway
Stephen Treadway
Chairman
2
<PAGE>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED)
JULY 31, 1998
<TABLE>
<CAPTION>
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM INVESTMENTS--98.8%
ALABAMA--2.0%
$1,000,000 Alabama State Docks Department Facility Revenue
(MBIA insured),
6.15%, 10/1/14............................................ Aaa/AAA $1,089,050
2,000,000 DCH Health Care Authority, Health Care Facilities Revenue,
5.70%, 6/1/15............................................. A1/A+ 2,106,120
----------
3,195,170
----------
CALIFORNIA--9.6%
1,000,000 Burbank Redevelopment Agency,
6.00%, 12/1/13............................................ Baa1/A- 1,053,160
2,500,000 California Health Facilities Financing Authority Revenue,
6.25%, 3/1/21............................................. A3/A 2,635,575
1,000,000 California State Public Works Board, Lease Revenue,
6.30%, 10/1/10 (Pre-refunded 10/1/04) (B)................. A2/A 1,130,790
1,000,000 Lafayette Elementary School District (FSA insured),
5.90%, 5/15/17............................................ Aaa/AAA 1,076,940
4,000,000 Los Angeles Harbor Department Revenue,
5.375%, 11/1/23........................................... Aa3/AA 4,048,400
1,000,000 Los Angeles Regional Airports Revenue,
6.70%, 1/1/22............................................. NR/A- 1,069,950
1,000,000 Madera County Certificates of Participation (MBIA insured),
6.125%, 3/15/23 (Pre-refunded 3/15/05) (B)................ Aaa/AAA 1,127,270
1,000,000 Modesto Irrigation Distribution Financing Authority
(AMBAC insured),
4.75%, 9/1/22............................................. Aaa/AAA 942,480
1,000,000 San Mateo County JT Powers Authority (MBIA insured),
5.00%, 7/1/21............................................. Aaa/AAA 994,560
1,500,000 Student Education Loan Marketing Corporation,
Student Loan Revenue,
7.00%, 7/1/10............................................. NR/A 1,646,700
----------
15,725,825
----------
COLORADO--4.9%
3,085,000 Colorado Health Facilities Authority Revenue (MBIA insured),
5.95%, 5/15/12............................................ Aaa/AAA 3,331,522
Denver City & County Airport Revenue (MBIA insured),
1,500,000 5.60%, 11/15/25............................................. Aaa/AAA 1,549,215
3,000,000 5.75%, 11/15/17............................................. Aaa/AAA 3,131,310
8,012,047
----------
CONNECTICUT--.8%
1,215,000 Connecticut General Obligation Bonds,
5.25%, 3/15/14............................................ Aa3/AA- 1,246,845
----------
</TABLE>
3
<PAGE>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JULY 31, 1998
<TABLE>
<CAPTION>
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM INVESTMENTS (CONT'D.)
FLORIDA--1.8%
$3,160,000 Tampa Health Systems Revenue (MBIA insured),
4.75%, 11/15/18........................................... Aaa/AAA $2,986,611
----------
GEORGIA-1.5%
1,000,000 Savannah Hospital Authority Revenue,
6.125%, 7/1/12............................................ A2/NR 1,073,670
1,260,000 Toombs County Hospital Authority Revenue,
7.00%, 12/1/17............................................ NR/BBB 1,365,764
----------
2,439,434
----------
ILLINOIS--5.6%
1,500,000 Chicago General Obligation Bonds (AMBAC insured),
5.125%, 1/1/25............................................ Aaa/AAA 1,471,200
1,000,000 Chicago Water Revenue (FGIC insured),
5.25%, 11/1/17............................................ Aaa/AAA 1,005,830
1,000,000 Illinois Educational Facilities Authority Revenue
(MBIA insured),
5.25%, 9/1/24............................................. NR/A- 968,230
2,740,000 Illinois Health Facilities Authority Revenue,
9.00%, 11/15/15........................................... Baa1/NR 3,089,240
2,430,000 Illinois Housing Development Authority Revenue,
6.70%, 8/1/25............................................. Aa3/AA 2,584,378
----------
9,118,878
----------
KENTUCKY--.7%
1,000,000 Louisville & Jefferson Counties Metropolitan Sewer District
(AMBAC insured),
6.50%, 5/15/24 (Pre-refunded 11/15/04) (B)................ Aaa/AAA 1,139,490
----------
LOUISIANA--1.0%
1,500,000 New Orleans General Obligation Bonds (AMBAC insured),
6.125%, 10/1/16........................................... Aaa/AAA 1,645,080
----------
MAINE--.6%
1,000,000 Maine State Housing Authority, Mortgage Purchase,
7.55%, 11/15/22........................................... Aa2/AA 1,055,030
----------
MARYLAND--1.0%
1,505,000 Maryland State Community Development Administration
(FHA insured),
7.60%, 4/1/23............................................. Aa/NR 1,574,636
----------
MASSACHUSETTS--7.0%
Massachusetts Bay Transportation Authority Revenue,
2,000,000 Ser. A, 5.00%, 3/1/27 (FGIC insured)........................ Aaa/AAA 1,937,820
3,000,000 Ser. D, 5.00%, 3/1/27....................................... Aa3/AA- 2,885,190
2,250,000 Massachusetts State Health & Education Facilities Authority
Revenue,
6.25%, 12/1/22............................................ A1/A 2,443,343
</TABLE>
4
<PAGE>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JULY 31, 1998
<TABLE>
<CAPTION>
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM INVESTMENTS (CONT'D.)
MASSACHUSETTS (CONT'D.)
$1,175,000 Massachusetts State Water Pollution Abatement Trust,
6.375%, 2/1/15............................................ Aa3/AA+ $1,294,239
3,250,000 Massachusetts State Water Resource Authority (FSA insured),
4.50%, 8/1/22............................................. Aaa/AAA 2,948,400
----------
11,508,992
----------
MICHIGAN--5.1%
1,700,000 Dearborn School District,
6.00%, 5/1/14 (Pre-refunded 5/1/01) (B)................... Aa2/AA 1,817,164
Michigan State Hospital Finance Authority Revenue,
1,000,000 5.50%, 10/1/18.............................................. Baa2/BBB 995,090
2,000,000 8.125%, 10/1/21 (Pre-refunded 10/1/05) (B).................. Baa2/AAA 2,491,200
1,000,000 Michigan State Pollution Control Revenue,
6.20%, 9/1/20............................................. A2/A 1,079,900
2,000,000 Wayne County Airport Revenue (MBIA insured),
5.00%, 12/1/22............................................ Aaa/AAA 1,918,340
----------
8,301,694
----------
MINNESOTA--4.1%
Minnesota State Housing Finance Agency,
1,620,000 6.00%, 2/1/14............................................... Aa2/AA 1,691,377
2,905,000 6.10%, 8/1/22............................................... Aa2/AA 3,032,559
1,955,000 6.25%, 8/1/22............................................... Aa2/AA 1,978,382
----------
6,702,318
----------
NEVADA--4.6%
2,000,000 Clark County General Obligation Bonds (MBIA insured),
6.00%, 6/1/13 (Pre-refunded 6/1/04) (B)................... Aaa/AAA 2,193,580
1,000,000 Clark County Industrial Development Revenue,
5.60%, 10/1/30............................................ NR/BBB- 1,002,780
2,000,000 Clark County Passenger Facility Charge Revenue
(MBIA insured),
5.75%, 7/1/23............................................. Aaa/AAA 2,090,660
Nevada Housing Division Revenue (FHA insured),
1,055,000 6.20%, 4/1/17............................................... Aaa/NR 1,114,565
1,000,000 6.20%, 10/1/28.............................................. Aaa/NR 1,052,280
----------
7,453,865
----------
NEW HAMPSHIRE--1.9%
1,000,000 New Hampshire Higher Educational & Health Facilities
Authority Revenue,
6.125%, 10/1/13........................................... Baa2/NR 1,035,020
New Hampshire State Housing Finance Authority,
940,000 6.50%, 7/1/14............................................... Aa3/NR 998,694
1,000,000 6.90%, 7/1/19............................................... Aa2/NR 1,062,460
----------
3,096,174
----------
</TABLE>
5
<PAGE>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JULY 31, 1998
<TABLE>
<CAPTION>
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM INVESTMENTS (CONT'D.)
NEW JERSEY--.6%
$1,000,000 New Jersey Economic Development Authority,
Heating & Cooling Revenue,
6.20%, 12/1/07............................................ NR/BBB- $1,059,800
----------
NEW YORK--15.1%
1,000,000 Long Island Power Authority, Electric System Revenue,
5.50%, 12/1/29............................................ Baa1/A- 1,017,400
1,000,000 Municipal Assistance Corporation, City of Troy (MBIA
insured),
5.00%, 1/15/16............................................ Aaa/AAA 989,650
New York City General Obligation Bonds,
2,000,000 5.75%, 2/1/17............................................... A3/A- 2,086,220
1,500,000 5.75%, 2/1/19............................................... A3/A- 1,560,090
1,000,000 5.875%, 3/15/18............................................. A3/A- 1,055,960
1,000,000 6.00%, 8/1/14............................................... A3/A- 1,078,180
1,000,000 6.00%, 8/1/16............................................... A3/A- 1,071,270
1,000,000 6.95%, 8/15/12 (MBIA insured) (Pre-refunded 8/15/04) (B).... Aaa/AAA 1,153,680
2,140,000 7.00%, 10/1/09 (Pre-refunded 10/1/02) (B)................... A3/A- 2,404,183
3,000,000 New York City Industrial Development Agency,
Special Facilities Revenue,
6.125%, 1/1/24............................................ A3/A 3,189,660
3,000,000 New York City Municipal Water Finance Authority,
Water & Sewer Systems Revenue,
6.00%, 6/15/25 (Pre-refunded 6/15/05) (B)................. Aaa/AAA 3,334,230
New York State Dormitory Authority Revenue,
500,000 5.30%, 8/15/21.............................................. Baa1/BBB+ 494,025
1,500,000 5.75%, 5/15/24 (Pre-refunded 5/15/04) (B)................... A3/A- 1,613,490
1,000,000 New York State Medical Care Facilities,
Finance Agency Revenue,
6.50%, 8/15/24............................................ A3/A- 1,121,690
New York State Urban Development Corporation,
Correctional Capital Facility,
1,500,000 5.00%, 1/1/28............................................... Baa1/BBB+ 1,422,570
1,080,000 5.375%, 1/1/25.............................................. Baa1/BBB+ 1,076,166
----------
24,668,464
----------
NORTH DAKOTA--.9%
1,500,000 North Dakota State Housing Finance Agency,
5.50%, 7/1/18............................................. Aa3/A- 1,506,435
----------
PENNSYLVANIA--5.2%
2,000,000 Allegheny County Hospital Development Authority
(MBIA insured),
6.00%, 7/1/23............................................. Aaa/AAA 2,221,960
1,750,000 Philadelphia Hospitals & Highered Facilities Authority
Revenue,
5.125%, 5/15/18........................................... Aaa/AAA 1,718,903
</TABLE>
6
<PAGE>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JULY 31, 1998
<TABLE>
<CAPTION>
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM INVESTMENTS (CONT'D.)
PENNSYLVANIA (CONT'D.)
$1,500,000 Philadelphia Water and Wastewater Revenue (MBIA insured),
5.25%, 6/15/23............................................ Aaa/AAA $1,500,765
3,000,000 Southeastern Pennsylvania Transit Authority Revenue
(FGIC insured),
5.375%, 3/1/22............................................ Aaa/AAA 3,059,310
----------
8,500,938
----------
SOUTH CAROLINA--.9%
1,450,000 York County Industrial Revenue,
5.70%, 1/1/24............................................. A2/A+ 1,480,653
----------
SOUTH DAKOTA--.7%
1,000,000 Heartland Consumers Power District Revenue,
7.00%, 1/1/16............................................. Aaa/AAA 1,190,750
----------
TENNESSEE--1.3%
2,000,000 Tennessee Housing Development Agency,
6.375%, 7/1/22............................................ Aa2/AA 2,118,160
----------
TEXAS--11.4%
1,000,000 Alliance Airport Authority Revenue,
6.375%, 4/1/21............................................ Baa2/BBB 1,079,620
1,195,000 Arlington General Obligation Bonds,
5.00%, 8/15/16............................................ Aa3/AA 1,180,983
1,000,000 Carrollton Independent School District (PSFG insured),
5.00%, 2/15/17............................................ Aaa/AAA 985,720
1,000,000 Denton County General Obligation Bonds (AMBAC insured),
5.00%, 7/15/16............................................ Aaa/AAA 988,300
1,000,000 Harlandale Independent School District (PSFG insured),
4.50%, 8/15/23............................................ Aaa/NR 903,890
1,500,000 Harris County Port Authority General Obligation Bonds,
5.75%, 10/1/17............................................ Aa2/AA 1,573,530
785,000 Harris County Toll Road Subordinated Lien,
6.50%, 8/15/15............................................ Aa2/AA 856,404
Houston Water Conveyance System, Certificates of
Participation (AMBAC insured),
1,000,000 6.25%, 12/15/14............................................. Aaa/AAA 1,151,950
1,400,000 7.50%, 12/15/15............................................. Aaa/AAA 1,810,732
2,500,000 Houston Water and Sewer Systems Revenue (FGIC insured),
5.00%, 12/1/25............................................ Aaa/AAA 2,423,750
1,000,000 San Antonio Electric & Gas Revenue,
6.00%, 2/1/14............................................. Aa1/AA 1,024,720
</TABLE>
7
<PAGE>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JULY 31, 1998
<TABLE>
<CAPTION>
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM INVESTMENTS (CONT'D.)
TEXAS (CONT'D.)
$4,750,000 Texas Turnpike Authority, Dallas North Thruway Revenue (FGIC
insured),
5.00%, 1/1/25............................................. Aaa/AAA $4,607,547
----------
18,587,146
----------
UTAH--.9%
Utah Housing Finance Agency (FHA insured),
1,030,000 6.35%, 7/1/11............................................... Aa/NR 1,092,984
335,000 6.55%, 7/1/26............................................... Aa/NR 355,107
----------
1,448,091
----------
VERMONT--1.1%
1,690,000 Vermont Housing Finance Agency (FHA insured),
7.85%, 12/1/29............................................ A1/A- 1,755,572
----------
VIRGINIA--3.3%
4,200,000 Virginia Housing Development Authority,
Commonwealth Mortgage,
6.50%, 1/1/13............................................. Aa1/AA+ 4,466,616
1,000,000 Virginia Housing Development Authority, Multi-Family
Housing,
5.20%, 11/1/15............................................ Aa1/AA+ 1,007,670
----------
5,474,286
----------
WASHINGTON--1.2%
1,000,000 Seattle Museum Development Authority,
6.30%, 7/1/13............................................. Aa1/AA+ 1,083,370
1,000,000 Washington General Obligation Bonds (FGIC insured),
5.00%, 1/1/22............................................. Aaa/AAA 971,740
----------
2,055,110
----------
WEST VIRGINIA--1.9%
Braxton County Solid Waste Disposal Revenue,
1,000,000 6.125%, 4/1/26.............................................. A2/A 1,074,020
1,000,000 6.50%, 4/1/25............................................... A2/A 1,098,160
1,000,000 West Virginia General Obligation Bonds (FGIC insured),
4.50%, 6/1/23............................................. Aaa/AAA 904,230
----------
3,076,410
----------
WISCONSIN--2.1%
3,500,000 Wisconsin Health & Educational Facilities Authority Revenue
(MBIA insured),
5.25%, 8/15/27............................................ Aaa/AAA 3,468,990
----------
Total Long-Term Investments (cost--$152,603,904)............ $161,592,894
-----------
</TABLE>
8
<PAGE>
MUNICIPAL ADVANTAGE FUND INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JULY 31, 1998
<TABLE>
<CAPTION>
Principal Credit Rating
Amount (Moody's/S&P) Value (A)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS--.1%
TEXAS--.1%
$ 100,000 Harris County Health Facilities Development Revenue, VRDN,
3.75%, 8/3/98
(cost--$100,000).......................................... NR/A1+ $ 100,000
------------
Total Investments (cost--$152,703,904)...................... 98.9% $161,692,894
Other Assets in Excess of Liabilities....................... 1.1 1,875,850
------------- ------------
Total Net Assets............................................ 100.0% $163,568,744
------------- ------------
------------- ------------
</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 the 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 used to pay
principal and interest and retire the bonds at the earliest refunding
date.
9
<PAGE>
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10
<PAGE>
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11
<PAGE>
- --------------------------------------------------------------------------------
Municipal Advantage Fund Inc. Quarterly Report
July 31, 1998
Directors and Principal Officers
Stephen J. Treadway
Director and Chairman of the Board
Raymond D. Horton
Director
Robert L. Rosen
Director
Jeswald W. Salacuse
Director
Bernard H. Garil
President
Newton B. Schott, Jr.
Executive Vice President and Assistant Secretary
Robert J. Bluestone
Executive Vice President
Matthew Greenwald
Executive Vice President
Deborah Kaback
Secretary
Richard L. Peteka
Treasurer
Investment Manager
Value Advisors LLC
800 Newport Center Drive
Newport Beach, CA 92660
Investment Adviser
OpCap Advisors
Two World Financial Center
New York, NY 10281
Transfer Agent, Dividend Paying Agent and Registrar
BostonEquiServe L.P.
Post Office Box 8200
Boston, MA 02266
Independent Accountants
PricewaterhouseCoopers 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.
-----------------------------
Municipal Advantage Fund Inc.
