-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, K1DNMp2OuB/4ro5x4fnwhlzhLRCWFzyEWxATV2/0ITvG49//tDctYu9WGUI7zlCx +9GqoLKhBEK5bxhGu5pLMw== 0000891804-01-000011.txt : 20010122 0000891804-01-000011.hdr.sgml : 20010122 ACCESSION NUMBER: 0000891804-01-000011 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001031 FILED AS OF DATE: 20010104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN MUNICIPAL VALUE FUND INC CENTRAL INDEX KEY: 0000812801 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MN FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05120 FILM NUMBER: 1501503 BUSINESS ADDRESS: STREET 1: 333 W WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 MAIL ADDRESS: STREET 1: 333 W. WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 FORMER COMPANY: FORMER CONFORMED NAME: NUVEEN MUNICIPAL QUALITY FUND INC DATE OF NAME CHANGE: 19870504 N-30D 1 0001.txt NUVEEN MUNICIPAL VALUE FUND INC(NUV) LOGO: NUVEEN Investments ANNUAL REPORT October 31, 2000 Municipal Closed-End Exchange-Traded Funds Dependable, tax-free income to help you keep more of what you earn. MUNICIPAL VALUE FUND NUV MUNICIPAL INCOME FUND NMI 2 Photos of: Adult reading with children. INVEST WELL. LOOK AHEAD. LEAVE YOUR MARK.(SM) Credit Quality HIGHLIGHTS As of October 31, 2000 PIECHART: NUVEEN MUNICIPAL VALUE FUND, INC. (NUV) AAA/U.S. Guaranteed 45% AA 22% A 20% BBB 9% NR 3% Other 1% NUVEEN MUNICIPAL VALUE FUND, INC. (NUV) AAA/U.S. Guaranteed 19% AA 9% A 12% BBB 26% NR 34% CONTENTS 1 Dear Shareholder 3 Portfolio Managers' Comments 6 NUV Performance Overview 7 NMI Performance Overview 8 Shareholder Meeting Report 9 Report of Independent Auditors 10 Portfolio of Investments 21 Statement of Net Assets 22 Statement of Operations 23 Statement of Changes in Net Assets 24 Notes to Financial Statements 29 Financial Highlights 32 Build Your Wealth Automatically 33 Fund Information - -------------------------------------------------------------------------------- COMPOUND YOUR WEALTH - AUTOMATICALLY All Nuveen Municipal Closed-End ETFs let you reinvest dividends and capital gains directly into additional shares of your Fund. This is a great way to see your investment grow through the power of compounding. For more information about Dividend Reinvestment, see the last page of this report or speak with your financial advisor. - -------------------------------------------------------------------------------- Photo of: Timothy R. Schwertfeger Chairman of the Board Sidebar text: "A WELL-BALANCED PORTFOLIO CAN HELP YOU REDUCE YOUR INVESTMENT RISKS." Dear SHAREHOLDER One of the primary goals of your Nuveen Fund is to provide you with attractive, dependable tax-free income from a quality port-folio. I am pleased to report that over the past fiscal year your Fund has continued to meet these objectives. I urge you to read the Portfolio Managers' Comments and Performance Overview pages included in this report, which provide more details about Fund results, how they were achieved, and how the Funds are trying to position themselves for the future. The uncertain markets of this past reporting period also remind us of another important reason for investing in Nuveen Funds. In times such as these, your Nuveen Fund can help bring a measure of diversification to your overall portfolio and serve as a useful counterbalance to other holdings. A well-balanced portfolio can help you reduce your investment risks and provide one of the keys to strong long-term performance. Invest Well. Look Ahead. Leave Your Mark. At Nuveen, we believe that investors should focus not only on investments that can help them accumulate wealth, but also on the plans and services that can help preserve that wealth and pass it along to future generations. This long-term perspective is an integral part of our portfolio management strategies, our insistence on quality, and our desire to provide investments that can withstand the test of time. In establishing a program tailored to your needs, the sound ongoing advice and disciplined focus provided by a trusted financial advisor can be an invaluable resource, enabling you to make wise investment decisions and build a program that can result in a lasting legacy. For more than a century, Nuveen has offered quality investments to those who recognize and embrace the need for building, preserving and managing wealth. All of us at Nuveen are dedicated to working with you and your financial advisor to provide the services, products, perspectives, and solutions that can help you meet your personal and family financial goals, now and for years to come. We thank you for your continued confidence. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board December 15, 2000 Sidebar text: "IN ESTABLISHING A PROGRAM TAILORED TO YOUR NEEDS, THE SOUND ONGOING ADVICE AND DISCIPLINED FOCUS PROVIDED BY A TRUSTED FINANCIAL ADVISOR CAN BE AN INVALUABLE RESOURCE." Nuveen National Closed-End Exchange-Traded Funds (NUV, NMI) Portfolio Managers' COMMENTS Portfolio managers Tom Spalding and Steve Peterson examine the economic environment, recent Fund performance, and the key investment strategies used to manage the Nuveen Municipal Value Fund, Inc. (NUV) and the Nuveen Municipal Income Fund, Inc. (NMI). Tom, a 24-year Nuveen veteran, has managed NUV since its inception in 1987, while Steve, who has 12 years of investment experience at Nuveen, assumed portfolio management responsibility for NMI in 1998. WHAT MAJOR FACTORS AFFECTED THE U.S. ECONOMY AND THE MUNICIPAL MARKET DURING THE PAST 12 MONTHS? The major news affecting the fixed-income markets over the past fiscal year has been the Federal Reserve's tightening policy. In an effort to keep inflation in check, the Fed continued to raise interest rates through May 2000, eventually bringing the federal funds target rate to 6.50%, the highest level in almost a decade. The Fed's policy has been to try to slow economic growth without causing a recession. Some recent evidence has suggested that the Fed effort may be having an impact. While the U.S. econom-ic expansion has reached a record tenth year, several indicators point to slowing growth. As a result, the Fed now seems to have put additional rate increases on hold, with some anticipating that the current tightening cycle may have reached its end. Although the Fed rate hikes have put pressure on the municipal bond market, several supply and demand factors have helped prevent major rate increases or decreases in value. New issue supply of municipal bonds during the first 10 months of 2000 totaled $154 billion nationwide, down 17.5% from 1999 levels. At this rate, the supply of municipal bonds could finish 2000 at its lowest level since 1995. The generally favorable economic conditions in many cities and states have enabled many issuers to use pay-as-you-go funding for necessary projects, holding the supply of new bonds in check. At the same time, demand from individual investors looking for diversification and income has remained strong. As a result, current municipal bond prices and yields are comparable to those of a year ago. HOW DID NUV AND NMI PERFORM OVER THE PAST YEAR? For the fiscal year ended October 31, 2000, NUV and NMI produced total returns on net asset value (NAV) as shown in the accompanying table. The annual returns for the Lehman Brothers Municipal Bond Index1 and the Funds' Lipper Peer Group2 are also presented. Market Total Return Lehman Lipper Yield on NAV Total Return1 Average2 - ------------------------------------------------------------------------ 1 Year 1 Year 1 Year Taxable- Ended Ended Ended 10/31/00 Equivalent3 10/31/00 10/31/00 10/31/00 - ------------------------------------------------------------------------ NUV 5.96% 8.64% 8.71% 8.51% 7.31% - ------------------------------------------------------------------------ NMI 6.24% 9.04% 3.02% 8.51% 7.31% - ------------------------------------------------------------------------ Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. Both Funds' total returns on NAV show substantial improvement over the results shown in the their semi-annual report last spring. This reflects the generally positive environment for municipal bonds since the last of the Fed's current round of rate hikes in May. As of October 31, 2000, long-term municipal yields were more than 99% of 30-year Treasury yields, compared with the historical average of 86% for the period 1986-1999. WERE THE FUNDS' DIVIDENDS AFFECTED BY THE MARKET ENVIRONMENT? During the past year, good call protection helped to maintain the income streams of both Funds. In addition, NMI's structure, which allows the Fund to invest a greater percentage of its assets in lower-rated, higher-yielding credits, enabled the Fund to increase its dividend in March 2000. As of the end of October 2000, NUV had offered shareholders 24 consecutive months of stable dividends, while NMI had provided 28 consecutive months of steady or increasing dividends. 1 The Funds' performance is com-pared with that of the Lehman Brothers Municipal Bond Index, an unleveraged index comprising a broad range of investment-grade municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The total returns of the Funds are compared with the average annualized return of the 16 funds in the Lipper General and Insured Unleveraged Municipal Debt Funds category. Fund and Lipper returns assume reinvestment of dividends. 3 The taxable-equivalent yield represents the yield that must be earned on a taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. The taxable-equivalent yield is based on the Fund's market yield on the indicated date and a federal income tax rate of 31%. WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE? During late 1999 and the first half of 2000, uncertainties about inflation and interest rates, coupled with investors' focus on equity market performance, tended to dampen interest in most fixed-income products. The lack of demand put pressure on the prices of many municipal bond investments. In recent months, as the bond market has begun to show signs of recovery and the stock market has continued to be volatile, we believe many investors are again considering tax-free fixed-income alternatives. Demand for NMI, which is managed with the goal of providing a higher yield relative to other unleveraged municipal funds, was strong enough to move the Fund from trading at a dis-count (share price below NAV) to a premium (share price above NAV) over the past 12 months. In NUV, however, in spite of the Fund's improved performance, investor interest continued to lag the rise in value of the bonds held by the Fund. As a result, NUV saw its discount widen. With the market price of NUV lower than the actual value of the bonds in its portfolio, shareholders may want to consider taking advantage of this opportunity to add to their holdings of this Fund. WHAT KEY STRATEGIES WERE USED TO MANAGE NUV AND NMI DURING THE FISCAL YEAR ENDED OCTOBER 31, 2000? Despite a slow start, the past fiscal year turned out to be generally positive for the fixed-income markets, including municipal bonds. During this period, we focused on strengthening the Funds' long-term dividend-paying capabilities and finding value in selected areas of the market, including utilities, healthcare, and transportation. Over the past year, utilities continued to represent NUV's largest sector weighting, as we maintained our allocation at 27% of the portfolio. We also added selec-tively to our holdings in the healthcare sector, increasing our weighting to 15% from 12% over the past 12 months. While this continued to be a challenging time for healthcare, we believed the sector showed some improvement as hospitals become more efficient in coping with an environment of higher costs and lower revenues. Using our research capabilities to gain a better understanding of the dynamics within this sector, we continued to find attractive healthcare opportunities. In NUV, we also found value in the transportation sector, particularly airport bonds, which we believe should do well if air traffic continues to increase. NUV benefited from Denver airport bonds already held by the Fund. These revenue bonds have performed exactly as we anticipated, providing above-market returns and price appreciation since our purchase. At 22% of the portfolio, the utilities sector also represented the largest weighting in NMI. Over the past 12 months, we added to our holdings in this sector by purchasing high-yield credits issued by the Cattaraugus County (New York) Industrial Development Agency for the Laidlaw Energy and Environmental Inc. project and by Martin County (Florida) for the Indiantown project. Both of these issues involved co-generation projects, in which an independent power producer burns natural gas to produce electricity. With the price of electricity rising due to the current supply/demand imbalance, we believe that power producers have become more eco-nomically viable and more creditworthy, and these bonds having been performing well for the Fund. NMI also continued to hold non-rated project finance bonds issued by the Erie County (New York) Industrial Development Agency for the CanFibre of Lackawanna project. These bonds, which performed well earlier this year, were adversely affected by the subsequent bank-ruptcy filing of the project contractor. We believe this situation is improving, with the plant essentially com-pleted and near operation. If CanFibre can successfully demonstrate its ability to manufacture and market a high-quality particle board product at the facility, we would expect the market to recognize the turnaround in this credit within the next year. We continue to monitor this holding very closely in an effort to ensure that the credit situation is resolved to the benefit of shareholders. As of October 31, 2000, NUV continued to offer excel-lent credit quality, with 67% of its assets invested in bonds rated AAA/U.S. guaranteed and AA. The Fund also had a 12% allocation of BBB/non-rated bonds, which generally provided higher yields as credit spreads widened over the past 18 months. NMI had 60% of its portfolio invested in BBB/non-rated bonds at the end of October, which helped it take advantage of these bonds' higher yields in order to enhance the Fund's yield. In addition, NMI had a 28% allocation of bonds rated AAA/U.S. guaranteed and AA. WHAT IS YOUR OUTLOOK FOR NUV AND NMI? In general, our outlook for the fixed-income markets over the next 12 months is positive. Current projections call for continued strong demand for municipal bonds, while new municipal issuance nationwide in 2001 is expected to stay under $200 billion. These supply-and-demand dynamics should continue to provide support for the municipal market and municipal bond prices. Looking specifically at NUV and NMI, both Funds offer good levels of call protection over the next two years, with a total of 21% and 8% of their portfolios, respectively, subject to calls during 2001 and 2002. Shareholders should note, however, that the interest rate environment over the next two years will play a major role in whether these bonds are actually called. While we cannot control the direction of interest rates, we will continue to actively manage the Funds in an effort to mitigate the longer-term effects of the bond call process. Over the next 12 months, we plan to continue to focus on strengthening the Funds' dividend-payment capabili-ties and monitoring the market for opportunities to enhance the Funds' structure (e.g., longer call protec-tion, higher coupon bonds). With a number of expansion projects already announced by airports in Chicago, St. Louis, New York and Newark, we expect to see increased issuance in this sector over the next several years. This should provide us with opportunities to to improve Fund structure and performance potential by decreasing our holdings of Denver airport bonds in NUV and selectively purchasing bonds associated with other airports. Overall, we believe NUV and NMI continue to serve as a dependable source of tax-free income and portfolio diversification, two essential elements of a comprehensive investment strategy. Nuveen Municipal Value Fund, Inc. Performance OVERVIEW As of October 31, 2000 NUV PORTFOLIO STATISTICS - -------------------------------------------------- Inception Date 6/87 - -------------------------------------------------- Share Price $8 9/16 - -------------------------------------------------- Net Asset Value $9.77 - -------------------------------------------------- Market Yield 5.96% - -------------------------------------------------- Taxable-Equivalent Yield1 8.64% - -------------------------------------------------- Fund Net Assets ($000) $1,903,967 - -------------------------------------------------- Average Effective Maturity (Years) 19.11 - -------------------------------------------------- Average Duration 7.52 - -------------------------------------------------- ANNUALIZED TOTAL RETURN - -------------------------------------------------- On Share Price On NAV - -------------------------------------------------- 1-Year 5.46% 8.71% - -------------------------------------------------- 5-Year 4.18% 5.36% - -------------------------------------------------- 10-Year 5.43% 6.58% - -------------------------------------------------- TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) - -------------------------------------------------- Utilities 27% - -------------------------------------------------- Healthcare 15% - -------------------------------------------------- Transportation 13% - -------------------------------------------------- U.S.Guaranteed 11% - -------------------------------------------------- Tax Obligation/Limited 10% - -------------------------------------------------- Bar Chart: 1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 11/99 0.0425 12/99 0.0425 1/00 0.0425 2/00 0.0425 3/00 0.0425 4/00 0.0425 5/00 0.0425 6/00 0.0425 7/00 0.0425 8/00 0.0425 9/00 0.0425 10/00 0.0425 Line Chart: SHARE PRICE PERFORMANCE 11/5/99 8.5 8.25 8.25 8.19 8.13 7.94 7.94 7.88 8.06 7.75 7.88 8.06 8.19 8.06 8.13 8.13 8.13 8.13 8.13 8.19 8.44 8.44 8.13 8 8.19 8.06 8.06 8.06 8.19 8.38 8.5 8.38 8.5 8.44 8.63 8.56 8.5 8.63 8.69 8.69 8.75 8.81 8.81 8.88 8.75 8.69 8.69 8.69 8.56 8.63 10/31/00 8.56 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 31%. 2 The Fund also paid shareholders a net ordinary income distribution in December 1999 of $0.0006 per share. Nuveen Municipal Income Fund, Inc. Performance OVERVIEW As of October 31, 2000 NMI PORTFOLIO STATISTICS - -------------------------------------------------- Inception Date 4/88 - -------------------------------------------------- Share Price $11 1/4 - -------------------------------------------------- Net Asset Value $11.01 - -------------------------------------------------- Market Yield 6.24% - -------------------------------------------------- Taxable-Equivalent Yield1 9.04% - -------------------------------------------------- Fund Net Assets ($000) $88,214 - -------------------------------------------------- Average Effective Maturity (Years) 17.60 - -------------------------------------------------- Average Duration 7.44 - -------------------------------------------------- ANNUALIZED TOTAL RETURN - -------------------------------------------------- On Share Price On NAV - -------------------------------------------------- 1-Year 9.45% 3.02% - -------------------------------------------------- 5-Year 6.43% 4.95% - -------------------------------------------------- 10-Year 6.67% 6.43% - -------------------------------------------------- TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) - -------------------------------------------------- Utilities 22% - -------------------------------------------------- Tax Obligation/General 14% - -------------------------------------------------- Basic Materials 10% - -------------------------------------------------- Long-Term Care 9% - -------------------------------------------------- U.S. Guaranteed 9% - -------------------------------------------------- Bar Chart: 1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 11/99 0.0575 12/99 0.0575 1/00 0.0575 2/00 0.0575 3/00 0.0585 4/00 0.0585 5/00 0.0585 6/00 0.0585 7/00 0.0585 8/00 0.0585 9/00 0.0585 10/00 0.0585 Share Price Performance 11/5/99 11.25 11.13 10.88 10.56 10.06 10.06 10.25 10.5 10.81 10.81 11 11.13 11.13 10.94 11.06 11.19 11.25 11.19 10.88 10.81 11.38 11.25 11.13 11.06 10.94 10.88 10.75 10.88 11.19 11.63 11.63 11.63 11.5 11.38 11.5 11.56 11.81 11.75 11.69 11.88 11.88 11.69 11.88 12.06 11.81 11.75 11.69 11.75 11.63 11.31 10/31/00 11.06 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 31%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 1999 of $0.0583 per share. Shareholder MEETING REPORT The annual shareholder meeting was held on July 26, 2000, at the Northern Trust Bank, Chicago, Illinois.
NUV NMI - ------------------------------------------------------------------------------------------------------------------------------------ Approval of the Directors was reached as follows: Shares Shares ==================================================================================================================================== Robert P. Bremner For 163,031,222 6,881,499 Withhold 2,001,168 67,231 - ------------------------------------------------------------------------------------------------------------------------------------ Total 165,032,390 6,948,730 ==================================================================================================================================== William J. Schneider For 163,168,823 6,879,899 Withhold 1,863,567 68,831 - ------------------------------------------------------------------------------------------------------------------------------------ Total 165,032,390 6,948,730 ==================================================================================================================================== Judith M. Stockdale For 162,819,505 6,870,438 Withhold 2,212,885 78,292 - ------------------------------------------------------------------------------------------------------------------------------------ Total 165,032,390 6,948,730 ==================================================================================================================================== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 163,210,947 6,875,410 Against 524,487 22,557 Abstain 1,296,956 50,763 - ------------------------------------------------------------------------------------------------------------------------------------ Total 165,032,390 6,948,730 ====================================================================================================================================
Report of INDEPENDENT AUDITORS THE BOARD OF DIRECTORS AND SHAREHOLDERS NUVEEN MUNICIPAL VALUE FUND, INC. NUVEEN MUNICIPAL INCOME FUND, INC. We have audited the accompanying statements of net assets, including the portfolios of investments, of Nuveen Municipal Value Fund, Inc. and Nuveen Municipal Income Fund, Inc. as of October 31, 2000, and the related statements of operations, changes in net assets and the financial highlights for the years indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of October 31, 2000, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Municipal Value Fund, Inc. and Nuveen Municipal Income Fund, Inc. at October 31, 2000, and the results of their operations, changes in their net assets and financial highlights for the years indicated therein in conformity with accounting principles generally accepted in the United States. /s/ Ernst & Young LLP Chicago, Illinois December 12, 2000 Nuveen Municipal Value Fund, Inc. (NUV) Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 2.0% $ 2,195 Alabama Housing Finance Authority, Single Family Mortgage Revenue 4/08 at 102 Aaa $2,067,339 Bonds (Collateralized Home Mortgage Revenue Bond Program), 1998 Series A-2, 5.450%, 10/01/28 (Alternative Minimum Tax) 5,000 The Industrial Development Board of the Town of Courtland 11/09 at 101 Baa1 5,109,250 (Alabama), Solid Waste Disposal Revenue Bonds (Champion International Corporation Project), Series 1999A, 6.700%, 11/01/29 (Alternative Minimum Tax) 4,000 The Medical Clinic Board of the City of Jasper (Alabama), 7/02 at 102 A3 3,980,680 Hospital Revenue Bonds, Series 1993 (Walker Regional Medical Center, Inc. Project), 6.375%, 7/01/18 12,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101 AAA 11,403,840 Warrants, Series 1999-A, 5.375%, 2/01/36 16,850 BMC Special Care Facilities Financing Authority of the City of 11/08 at 101 AAA 14,843,165 Montgomery (Alabama), Revenue Bonds, Series 1998-B (Baptist Health), 5.000%, 11/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.4% 4,900 Arizona Health Facilities Authority, Hospital Revenue Bonds 11/09 at 100 A2 4,918,277 (Phoenix Children's Hospital), Series 1999A, 6.250%, 11/15/29 16,000 Arizona Health Facilities Authority, Revenue Bonds (Catholic 7/10 at 101 BBB+ 16,138,080 Healthcare West), 1999 Series A, 6.625%, 7/01/20 5,130 Yuma Regional Medical Center on behalf of Hospital District 8/02 at 101 1/2 N/R*** 5,509,004 No. 1 of Yuma County, Arizona, Hospital Revenue Improvement and Refunding Bonds (Yuma Regional Medical Center Project), Series 1992, 8.000%, 8/01/17 (Pre-refunded to 8/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.2% 1,635 City of Conway, Arkansas, Sales and Use Tax Capital Improvement 12/06 at 101 AAA 1,627,316 Bonds, Series 1997A, 5.350%, 12/01/17 2,750 Jefferson County, Arkansas, Pollution Control Revenue Refunding 12/02 at 102 BBB- 2,562,093 Bonds (Energy Arkansas, Inc. Project), Series 1997, 5.600%, 10/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 6.4% California Educational Facilities Authority, Revenue Bonds, Series 2000, Loyola Marymount University: 3,655 0.000%, 10/01/23 10/09 at 41 13/16 Aaa 901,835 7,310 0.000%, 10/01/24 10/09 at 39 3/16 Aaa 1,688,464 9,000 State of California, Department of Water Resources, Central Valley 6/03 at 101 1/2 AA 9,174,600 Project, Water System Revenue Bonds, Series L, 5.750%, 12/01/19 14,500 State of California, Department of Water Resources, Central 12/03 at 101 AA 12,924,430 Valley Project, Water System Revenue Bonds, Series M, 4.750%, 12/01/24 17,155 State Public Works Board of the State of California, Lease Revenue 6/03 at 102 Aa2 17,226,365 Refunding Bonds (The Regents of the University of California), 1993 Series A (Various University of California Projects), 5.500%, 6/01/21 10,500 California Statewide Communities Development Authority, 4/09 at 101 BBB 9,675,960 Certificates of Participation, The Internext Group, 5.375%, 4/01/17 6,530 California Statewide Communities Development Authority, 7/03 at 102 AA- 6,597,651 Certificates of Participation, St. Joseph Health System Obligated Group, 5.500%, 7/01/14 3,000 Community Facilities District No. 98-2 of the Capistrano Unified 9/09 at 102 N/R 2,848,290 School District (Ladera), California, Series 1999 Special Tax Bonds, 5.750%, 9/01/29 5,375 Central Joint Powers Health Financing Authority, Certificates 2/03 at 100 Baa1 4,415,993 of Participation, Series 1993 (Community Hospital of Central California), 5.000%, 2/01/23 Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A: 30,000 0.000%, 1/01/22 No Opt. Call AAA 9,215,100 2,500 6.000%, 1/01/34 (Pre-refunded to 1/01/07) 1/07 at 100 AAA 2,739,950 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 7,500 Department of Water and Power of the City of Los Angeles, 11/03 at 102 AAA $7,340,700 California, Electric Plant Refunding Revenue Bonds, Second Issue of 1993, 5.400%, 11/15/31 30,470 Los Angeles County Public Works Financing Authority, Lease 12/03 at 102 AAA 30,219,841 Revenue Bonds (Multiple Capital Facilities Project IV), 4.750%, 12/01/13 7,300 County of San Diego, California, Certificates of Participation, 9/09 at 101 Baa3 7,440,160 The Burnham Institute, 6.250%, 9/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 10.1% 12,515 Colorado Health Facilities Authority, Revenue Bonds, Series 1994 5/04 at 102 AA- 12,096,999 (Sisters of Charity Health Care Systems, Inc.), 5.250%, 5/15/14 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992B: 3,680 7.000%, 11/15/03 (Alternative Minimum Tax) 11/02 at 102 A 3,892,962 2,125 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 Aaa 2,276,173 (Pre-refunded to 11/15/02) 8,290 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 8,748,105 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C: 655 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 Aaa 695,420 (Pre-refunded to 11/15/02) 5,045 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 A 5,275,657 7,515 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 Aaa 7,978,751 (Pre-refunded to 11/15/02) 29,870 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 A 31,176,514 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1990A: 790 8.250%, 11/15/12 (Alternative Minimum Tax) 11/00 at 102 Aaa 806,906 (Pre-refunded to 11/15/00) 8,360 8.250%, 11/15/12 (Alternative Minimum Tax) 11/00 at 102 A 8,538,737 2,705 8.500%, 11/15/23 (Alternative Minimum Tax) 11/00 at 102 Aaa 2,763,130 (Pre-refunded to 11/15/00) 29,090 8.500%, 11/15/23 (Alternative Minimum Tax) 11/00 at 102 A 29,714,562 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 3,475 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Aaa 3,692,014 (Pre-refunded to 11/15/01) 9,635 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 A 10,155,675 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D: 1,820 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Aaa 1,915,805 (Pre-refunded to 11/15/01) 6,930 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 7,238,039 10,275 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Aaa 10,542,047 (Pre-refunded to 11/15/01) 39,745 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 40,419,870 5,000 E-470 Public Highway Authority (Colorado), Senior Revenue Bonds, 9/10 at 102 AAA 5,043,550 Series 2000A, 5.750%, 9/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.4% 7,055 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AA 7,220,793 Program Bonds, 1996 Series D, Subseries D-2, 6.200%, 11/15/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.4% 8,000 Washington Convention Center Authority (Washington, D.C.), 10/08 at 100 AAA 6,882,320 Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 4.750%, 10/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 2.1% 5,000 Orange County Health Facilities Authority (Florida), Hospital 10/09 at 101 A 4,912,650 Revenue Bonds (Orlando Regional Healthcare System), Series 1999E, 6.000%, 10/01/26 5,000 Orlando Utilities Commission (Florida), Water and Electric 10/02 at 100 Aa2 4,943,000 Subordinated Revenue Bonds, Series 1992A, 5.500%, 10/01/27 8,000 Orlando Utilities Commission (Florida), Water and Electric 10/03 at 102 Aa2 7,695,520 Subordinated Revenue Refunding Bonds, Series 1993A, 5.250%, 10/01/23 Orlando Utilities Commission (Florida), Water and Electric Subordinated Revenue Bonds, Series 1993B: 14,000 5.600%, 10/06/17 10/03 at 102 Aa2 14,130,900 7,000 5.250%, 10/01/23 10/03 at 101 Aa2 6,672,540 2,500 Orlando Utilities Commission (Florida), Water and Electric 10/02 at 101 Aa1 2,393,050 Revenue Bonds, Series 1993, 5.125%, 10/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.2% 20,350 City of Atlanta (Georgia), Water and Wastewater Revenue Bonds, 5/09 at 101 AAA 18,086,063 Series 1999A, 5.000%, 11/01/38 Nuveen Municipal Value Fund, Inc. (NUV) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA (continued) Coffee County Hospital Authority (Georgia), Revenue Anticipation Certificates (Coffee Regional Medical Center, Inc. Project), Series 1997A: $ 2,500 6.250%, 12/01/06 No Opt. Call N/R $2,445,100 21,100 6.750%, 12/01/26 12/06 at 102 N/R 19,152,681 2,250 Hospital Authority of the City of Royston (Georgia), 7/09 at 102 N/R 2,106,968 Revenue Anticipation Certificates (Ty Cobb Healthcare System, Inc. Project), Series 1999, 6.500%, 7/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 10.7% 2,060 Aurora, Illinois, Golf Course Revenue Bonds, Series 2000, 1/10 at 100 A+ 2,146,808 6.375%, 1/01/20 5,000 City of Chicago, General Obligation Bonds, Project Series A 1/02 at 102 AAA 5,190,300 of 1992, 6.250%, 1/01/12 (Pre-refunded to 1/01/02) 3,500 City of Chicago (Illinois), General Obligation Bonds, Project 7/08 at 102 AAA 3,294,900 and Refunding Series 1998, 5.250%, 1/01/28 2,000 Chicago School Reform Board of Trustees of the Board of Education 12/07 at 102 AAA 1,908,160 of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1997A, 5.250%, 12/01/22 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1998A: 15,000 0.000%, 12/01/24 No Opt. Call AAA 3,676,050 47,500 0.000%, 12/01/28 No Opt. Call AAA 9,166,075 1,125 Metropolitan Water Reclamation District of Greater Chicago, No Opt. Call Aa1 1,312,796 General Obligation Capital Improvement Bonds, Series of June, 1991, 7.000%, 1/01/11 9,050 City of Chicago, Illinois, Tax Increment Allocation Bonds 1/01 at 102 N/R*** 9,268,558 (Stockyards Industrial - Commercial Redevelopment Project), Series 1991, 9.000%, 1/01/11 (Pre-refunded to 1/01/01) 5,190 Illinois Development Finance Authority, Industrial Development 6/02 at 102 N/R 5,279,060 Revenue Bonds, Series 1992 (Plano Molding Company Project), 7.750%, 6/01/12 (Alternative Minimum Tax) 3,000 Illinois Development Finance Authority, Pollution Control No Opt. Call A- 2,926,500 Revenue Refunding Bonds, Series 1994 (Commonwealth Edison Company Project), 5.850%, 1/15/14 Illinois Development Finance Authority (The Presbyterian Home Lake Forest Place Project), Revenue Bonds, Series 1996 B: 6,495 6.400%, 9/01/31 (Pre-refunded to 9/01/06) 9/06 at 102 AAA 7,164,894 990 6.400%, 9/01/31 9/06 at 102 AAA 1,033,204 1,800 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 644,238 Program Revenue Bonds, Series 2000 (Rockford School District Number 205 Project), 0.000%, 2/01/19 14,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 10/03 at 102 A- 12,300,960 Series 1993 (Illinois Masonic Medical Center), 5.500%, 10/01/19 7,000 Illinois Health Facilities Authority, Revenue Bonds, 11/03 at 102 AAA 6,662,670 Series 1993, Swedish American Hospital, 5.375%, 11/15/23 18,015 Illinois Health Facilities Authority, Revenue Bonds, Series 1993 11/03 at 102 AAA 17,039,127 (Rush-Presbyterian-St. Luke's Medical Center Obligated Group), 5.250%, 11/15/20 8,735 Illinois Health Facilities Authority, Revenue and Revenue Refunding 11/00 at 102 AAA 8,926,122 Bonds, Series 1990C (Hinsdale Hospital), 9.500%, 11/15/19 (Pre-refunded to 11/15/00) Illinois Health Facilities Authority, Revenue Bonds, Series 1992 (South Suburban Hospital): 1,150 7.000%, 2/15/18 (Pre-refunded to 2/15/02) 2/02 at 102 A*** 1,207,075 4,350 7.000%, 2/15/18 No Opt. Call A*** 5,031,123 8,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1997 8/07 at 101 AAA 7,386,000 (Sherman Health Systems), 5.250%, 8/01/22 15,000 Illinois Health Facilities Authority, Revenue Bonds, Series 2000, 5/10 at 101 A3 15,107,400 Condell Medical Center, 6.500%, 5/15/30 44,615 State of Illinois, Build Illinois Bonds (Sales Tax Revenue Refunding 6/02 at 101 AAA 44,058,651 Bonds), Series Q, 5.500%, 6/15/20 18,955 Metropolitan Pier and Exposition Authority (Illinois), McCormick No Opt. Call AAA 7,544,280 Place Expansion Project Bonds, Series 1992A, 0.000%, 6/15/17 Metropolitan Pier and Exposition Authority (Illinois), McCormick Place Expansion Project Bonds, Series 1994B: 7,250 0.000%, 6/15/18 No Opt. Call AAA 2,706,715 9,900 0.000%, 6/15/29 No Opt. Call AAA 1,895,256 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 16,550 Metropolitan Pier and Exposition Authority (Illinois), McCormick No Opt. Call AAA $4,967,152 Place Expansion Project Refunding Bonds, Series 1996A, 0.000%, 12/15/21 11,650 Regional Transportation Authority, Cook, DuPage, Kane, Lake, 6/04 at 102 AAA 12,509,887 McHenry and Will Counties (Illinois), General Obligation Bonds, Series 1994A, 6.250%, 6/01/24 1,670 Tri-City Regional Port District (Illinois), Port and Terminal No Opt. Call N/R 1,652,615 Facilities Revenue Bonds (1998 Refunding and Dock #2 Enhancement Project), Series 1998B, 5.875%, 7/01/08 (Alternative Minimum Tax) 2,295 School District Number 161, Will County, Illinois, Capital No Opt. Call Aaa 877,447 Appreciation School Bonds, Series 1999, 0.000%, 1/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 2.6% 10,000 Indiana Health Facility Financing Authority, Hospital Revenue 11/07 at 102 AAA 9,414,700 Bonds, Series 1997A (Sisters of St. Francis Health Services, Inc. Project), 5.375%, 11/01/27 17,105 Indiana Health Facility Financing Authority, Hospital Revenue 2/07 at 102 AA 17,264,248 Bonds (Clarian Health Partners, Inc.), Series 1996A, 6.000%, 2/15/21 4,840 Indianapolis Airport Authority, Special Facilities Revenue Bonds, 7/04 at 102 BBB 5,096,665 Series 1994 (Federal Express Corporation Project), 7.100%, 1/15/17 (Alternative Minimum Tax) The Indianapolis (Indiana), Local Public Improvement Bond Bank, Series 1999E: 12,500 0.000%, 2/01/21 No Opt. Call AAA 3,927,250 10,000 0.000%, 2/01/27 No Opt. Call AAA 2,190,000 9,155 City of South Bend, Indiana, Multifamily Housing Revenue Refunding 11/00 at 102 N/R 8,577,777 Bonds (The Pointe at St. Joseph Project), Issue of 1994, Series A, 6.200%, 12/15/18 500 City of South Bend, Indiana, Multifamily Housing Revenue Refunding 11/00 at 102 N/R 478,870 Bonds (The Pointe at St. Joseph Project), Issue of 1994, Series B, 6.450%, 12/15/18 (Alternative Minimum Tax) 3,169 City of South Bend, Indiana, Multifamily Housing Revenue 12/03 at 100 N/R 1,964,767 Refunding Bonds (The Pointe at St. Joseph Project), Issue of 1994, Series C, 3.850%, 12/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.3% 20,015 Iowa Housing Finance Authority, Single Family Housing Bonds, No Opt. Call AAA 3,481,009 1984 Issue A, 0.000%, 9/01/16 1,880 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102 AAA 1,705,198 Series 1998 A (Iowa Health System), 5.125%, 1/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.4% 6,650 City of Newton, Kansas, Hospital Revenue Bonds (Newton 11/04 at 102 N/R*** 7,476,063 Healthcare Corporation), Series 1994A, 7.750%, 11/15/24 (Pre-refunded to 11/15/04) - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.2% 12,500 County of Carroll, Kentucky, Collateralized Pollution Control 9/02 at 102 A1 13,245,750 Revenue Bonds (Kentucky Utilities Company Project), 1992 Series A, 7.450%, 9/15/16 9,000 Greater Kentucky Housing Assistance Corporation, Mortgage 1/03 at 100 AAA 9,020,790 Revenue Refunding Bonds, Series 1997A (FHA-Insured Mortgage Loans - Section 8 Assisted Projects), 6.100%, 1/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 1.2% 19,475 Louisiana Public Facilities Authority, Hospital Revenue 11/00 at 100 AAA 22,717,782 Refunding Bonds (Southern Baptist Hospitals, Inc. Project), Series 1986, 8.000%, 5/15/12 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 1.8% 14,365 Maine State Housing Authority, Mortgage Purchase Bonds, 2/04 at 102 AA 14,440,129 1994 Series A, 5.550%, 11/15/14 19,925 Maine State Housing Authority, Mortgage Purchase Bonds, 5/05 at 102 AA 20,303,974 1995 Series A-2, 6.650%, 11/15/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.6% 10,900 Community Development Administration of Maryland, 3/07 at 101 1/2 Aa2 10,930,956 Department of Housing and Community Development, Residential Revenue Bonds, Series 1997B, 5.875%, 9/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 4.2% 1,155 Massachusetts Municipal Wholesale Electric Company, No Opt. Call BBB+ 1,279,581 Power Supply System Revenue Bonds, 1987 Series A, 8.750%, 7/01/18 Nuveen Municipal Value Fund, Inc. (NUV) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS (continued) $ 5,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R $5,241,950 Revenue Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15 16,400 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 14,591,572 System Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37 8,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 7,326,480 System Revenue Bonds, 1997 Series B, 5.125%, 1/01/37 Massachusetts Turnpike Authority, Metropolitan Highway System Revenue Bonds, 1999 Series A (Subordinated): 2,500 4.750%, 1/01/34 1/09 at 101 AAA 2,143,475 6,000 5.000%, 1/01/39 1/09 at 101 AAA 5,311,020 36,580 Massachusetts Water Resources Authority, General Revenue 11/02 at 102 AA 36,965,187 Refunding Bonds, 1992 Series B, 5.500%, 11/01/15 8,000 Massachusetts Water Pollution Abatement Trust, Pool Program 8/10 at 101 AAA 7,912,560 Bonds, Series 6, 5.500%, 8/01/30 (WI, settling 11/08/00) - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 4.9% 6,000 The Economic Development Corporation of the City of Dearborn 8/04 at 102 AAA 5,675,100 (Michigan), Hospital Revenue Refunding Bonds (Oakwood Obligated Group), Series 1994A, 5.250%, 8/15/21 10,000 City of Detroit, Local Development Finance Authority, Tax Increment 5/09 at 101 N/R 8,819,500 Bonds, Series 1998A, 5.500%, 5/01/21 1,400 City of Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 101 AAA 1,397,760 Refunding Bonds, Series 1995-B, 5.250%, 7/01/15 County of Grand Traverse Hospital Finance Authority (Michigan), Hospital Revenue Refunding Bonds (Munson Healthcare Obligated Group), Series 1992A: 2,700 6.250%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 2,827,899 1,300 6.250%, 7/01/12 7/02 at 102 AAA 1,353,339 1,900 Michigan State Hospital Finance Authority, Revenue and Refunding 8/03 at 102 BBB- 1,674,166 Bonds (The Detroit Medical Center Obligated Group), Series 1993A, 6.500%, 8/15/18 7,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/01 at 102 Aaa 7,305,550 Bonds (The Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01) 23,005 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB- 16,338,611 Bonds (The Detroit Medical Center Obligated Group), Series 1998A, 5.250%, 8/15/28 4,320 Michigan State Housing Development Authority, Rental Housing 4/03 at 102 AAA 4,353,912 Revenue Bonds, 1993 Series A, 5.875%, 10/01/17 15,750 Michigan State Housing Development Authority, Rental Housing 6/05 at 102 AAA 16,253,843 Revenue Bonds, 1995 Series B, 6.150%, 10/01/15 25,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/05 at 102 AAA 26,479,250 Bonds (Detroit Edison Company Pollution Control Bonds Project), Collateralized Series 1995AA, 6.400%, 9/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.2% 3,945 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102 AAA 4,002,124 1995 Series D, 5.900%, 8/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.7% 13,000 Mississippi Hospital Equipment and Facilities Authority, 5/03 at 102 AAA 13,131,170 Revenue Refunding and Improvement Bonds (North Mississippi Health Services), 1993 Series 1, 5.750%, 5/15/16 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.3% The Industrial Development Authority of the City of West Plains, Missouri Hospital Facilities Revenue Bonds (Ozark Medical Center), Series 1997: 1,750 5.500%, 11/15/12 11/07 at 101 N/R 1,451,888 1,000 5.600%, 11/15/17 11/07 at 101 N/R 790,920 3,075 The Industrial Development Authority of the City of West Plains, 11/09 at 101 N/R 2,728,202 Missouri Hospital Facilities Revenue Bonds (Ozark Medical Center), Series 1999, 6.750%, 11/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.2% 3,610 Consumers Public Power District, Nebraska, Nuclear Facility 1/01 at 100 A+ 3,611,372 Revenue Bonds, 1968 Series, 5.100%, 1/01/03 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 1.0% Director of the State of Nevada, Department of Business and Industry, Las Vegas Monorail Project, Revenue Bonds, 1st Tier Series 2000: $ 7,500 0.000%, 1/01/24 No Opt. Call AAA $1,928,175 18,000 5.375%, 1/01/40 1/10 at 100 AAA 16,992,000 - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 1.1% 23,125 Business Finance Authority of the State of New Hampshire, 10/03 at 102 A3 20,968,594 Pollution Control Refunding Revenue Bonds (The United Illuminating Company Project), 1993 Series A, 5.875%, 10/01/33 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.5% 25,625 New Jersey Economic Development Authority, Special Facility 9/09 at 101 BB 23,548,863 Revenue Bonds (Continental Airlines, Inc. Project), Series 1999, 6.250%, 9/15/29 (Alternative Minimum Tax) 5,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101 BBB- 5,152,150 Bonds (Trinitas Hospital Obligated Group Issue), Series 2000, 7.500%, 7/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 9.2% 5,360 Village of East Rochester Housing Authority (New York), 8/07 at 102 AAA 5,418,960 FHA-Insured Mortgage Revenue Bonds (St. John's Meadows Project), Series 1997A, 5.600%, 8/01/17 Long Island Power Authority, Electric System General Revenue Bonds, Series 1998A: 7,500 5.125%, 12/01/22 6/08 at 101 AAA 7,083,075 10,000 5.250%, 12/01/26 6/08 at 101 AAA 9,502,800 26,745 5.500%, 12/01/29 6/03 at 101 A- 25,640,432 5,000 The City of New York, General Obligation Bonds, Fiscal 1994 8/03 at 101 1/2 A 5,168,700 Series D, 5.750%, 8/15/10 5,000 The City of New York, General Obligation Bonds, Fiscal 1996 2/06 at 101 1/2 A 5,122,950 Series G, 5.750%, 2/01/14 10,000 The City of New York, General Obligation Bonds, Fiscal 1997 8/06 at 101 1/2 A 10,378,100 Series E, 6.000%, 8/01/16 13,395 The City of New York, General Obligation Bonds, Fiscal 1998 8/07 at 101 A 13,912,449 Series D, 5.500%, 8/01/10 39,610 The City of New York, General Obligation Bonds, Fiscal 1997 10/07 at 101 A 40,726,606 Series G, 6.000%, 10/15/26 15,000 New York City Municipal Water Finance Authority, Water and 6/06 at 101 AAA 15,134,400 Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 5,200 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101 A 5,350,384 Lease Revenue Bonds (The City of New York Issue), Series 1999, 6.000%, 5/15/39 7,000 Dormitory Authority of the State of New York, Mental Health 8/09 at 101 A 6,480,950 Services Facilities Improvement Revenue Bonds, Series 1999D, 5.250%, 2/15/29 15,000 New York Local Government Assistance Corporation, 4/01 at 102 AAA 15,466,950 Series 1991A Bonds, 7.000%, 4/01/16 (Pre-refunded to 4/01/01) 9,435 New York State Medical Care Facilities Finance Agency, 8/03 at 102 AAA 9,648,891 St. Luke's-Roosevelt Hospital Center, FHA-Insured Mortgage Revenue Bonds, 1993 Series A, 5.600%, 8/15/13 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 3.3% 3,600 City of Charlotte, North Carolina, Refunding Certificates 12/03 at 102 AAA 3,493,332 of Participation (Convention Facility Project), Series 1993C, 5.250%, 12/01/20 11,965 North Carolina Eastern Municipal Power Agency, Power System 9/03 at 102 1/2 BBB 11,610,477 Revenue Bonds, Series 1985-G, 5.750%, 12/01/16 11,610 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 102 BBB 11,540,572 Revenue Bonds, Series 1993-D, 5.875%, 1/01/14 1,000 North Carolina Eastern Municipal Power Agency, Power System 1/07 at 102 AAA 1,037,090 Revenue Bonds, Refunding Series 1996 A, 5.700%, 1/01/13 14,060 North Carolina Municipal Power Agency Number 1, Catawba 1/03 at 100 BBB+ 13,726,356 Electric Revenue Bonds, Series 1992, 5.750%, 1/01/15 11,660 North Carolina Municipal Power Agency Number 1, Catawba 1/01 at 100 BBB+ 11,437,760 Electric Revenue Bonds, Series 1985B, 6.000%, 1/01/20 10,000 North Carolina Municipal Power Agency Number 1, Catawba 1/10 at 101 BBB+ 10,245,400 Electric Revenue Bonds, Series 1999B, 6.500%, 1/01/20 Nuveen Municipal Value Fund, Inc. (NUV) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.1% $ 2,350 Midwest City Memorial Hospital Authority (Midwest City, 4/02 at 102 BBB+*** $2,483,222 Oklahoma), Hospital Revenue Bonds, Series 1992, 7.375%, 4/01/22 (Pre-refunded to 4/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 3.5% 5,955 Pennsylvania Convention Center Authority, Refunding 9/04 at 102 BBB 6,166,998 Revenue Bonds, 1994 Series A, 6.750%, 9/01/19 11,175 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/03 at 102 AA+ 11,204,055 Revenue Bonds, Series 1993-36, 5.450%, 10/01/14 9,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 9,204,480 Revenue Bonds, Series 1996-51, 6.375%, 4/01/28 (Alternative Minimum Tax) 18,850 Pennsylvania Intergovernmental Cooperation Authority, Special 6/03 at 100 AAA 17,429,841 Tax Revenue Refunding Bonds (City of Philadelphia Funding Program), Series of 1993A, 5.000%, 6/15/22 4,500 Pennsylvania Higher Educational Facilities Authority, The Trustees 7/08 at 100 AA 3,801,195 of the University of Pennsylvania, Revenue Bonds, Series 1998, 4.500%, 7/15/21 19,255 City of Philadelphia, Pennsylvania, Water and Wastewater 6/03 at 102 AAA 19,492,414 Revenue Bonds, Series 1993, 5.500%, 6/15/14 - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.8% 10,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101 AAA 9,989,800 Bonds, 2000 Series A, 5.500%, 10/01/40 5,500 Puerto Rico Industrial, Tourist, Educational, Medical, and 6/10 at 101 Baa2 5,711,475 Environmental Control Facilities Financing Authority, Cogeneration Facility Revenue Bonds, 2000 Series A, 6.625%, 6/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 0.3% 6,250 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA 5,814,375 Hospital Financing Revenue Bonds, Lifespan Obligated Group Issue, Series 1996, 5.250%, 5/15/26 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.0% 13,000 Piedmont Municipal Power Agency (South Carolina), Electric 1/01 at 100 BBB- 10,410,660 Revenue Bonds, 1986 Refunding Series, 5.000%, 1/01/25 8,000 South Carolina Jobs and Economic Development Authority, 12/10 at 102 Baa1 8,099,360 Hospital Improvement Revenue Bonds (Palmetto Health Alliance), Series 2000A, 7.375%, 12/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.1% 2,125 Municipal Energy Acquisition Corporation (Tennessee), Gas No Opt. Call AAA 1,909,376 Revenue Bonds, Series 1999, 4.125%, 3/01/08 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 6.2% 11,990 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, 12/00 at 102 Baa1 12,241,790 Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax) 12,525 City of Austin, Texas, Combined Utility Systems Revenue Bonds, 5/01 at 100 AAA 12,769,238 Series 1986A, 8.000%, 11/15/16 (Pre-refunded to 5/15/01) 24,265 City of Austin, Texas, Combined Utility Systems Revenue Refunding No Opt. Call AAA 35,280,097 Bonds, Series 1992A, 12.500%, 11/15/07 2,630 Corpus Christi Housing Finance Corporation (Texas), Single Family 7/01 at 103 AAA 2,787,248 Mortgage Senior Revenue Refunding Bonds, Series 1991A, 7.700%, 7/01/11 10,000 Harris County, Texas, Toll Road Unlimited Tax and Subordinate Lien 8/01 at 102 AA+ 10,351,000 Revenue Refunding Bonds, Series 1991, 6.750%, 8/01/14 10,045 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100 AAA 10,319,831 Bonds, Series 2000A, 5.875%, 7/01/16 (Alternative Minimum Tax) (WI, settling 11/15/00) 3,470 Irving Independent School District, Unlimited Tax School Building No Opt. Call AAA 2,048,619 Bonds, Series 1997, 0.000%, 2/15/11 5,685 Irving Independent School District, Unlimited Tax Refunding Bonds, No Opt. Call AAA 3,562,903 Series 1997 A, 0.000%, 2/15/10 22,060 Leander Independent School District (Williamson and Travis 8/09 at 31 15/32 AAA 4,115,293 Counties, Texas), Unlimited Tax School Building and Refunding Bonds, Series 2000, 0.000%, 8/15/27 14,625 Matagorda County Navigation District Number One (Texas), 4/01 at 102 AAA 14,750,336 Collateralized Revenue Refunding Bonds (Houston Lighting and Power Company Project), Series 1995, 5.800%, 10/15/15 4,000 Industrial Development Corporation of Port of Corpus Christi 4/08 at 102 BBB- 3,499,680 (Texas), Revenue Refunding Bonds (Valero Refining and Marketing Company Project), 5.400%, 4/01/18 5,750 Weslaco Health Facilities Development Corporation, Hospital 1/04 at 102 AAA 5,461,523 Revenue Bonds (Knapp Medical Center Project), Series 1994, 5.375%, 6/01/23 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 3.2% $ 12,000 Intermountain Power Agency (Utah), Power Revenue Refunding 7/06 at 102 A+ $10,947,240 Bonds, 1996 Series D, 5.000%, 7/01/21 Intermountain Power Agency (Utah), Power Supply Revenue Refunding Bonds, 1993 Series A: 18,580 5.500%, 7/01/20 7/03 at 102 A+*** 18,589,847 21,045 5.500%, 7/01/20 7/03 at 102 A+ 20,486,255 7,560 5.000%, 7/01/23 7/03 at 100 A+ 6,881,717 5,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 101 1/2 AAA 4,508,850 1998 Series G, 5.200%, 7/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.2% 3,245 Virginia Housing Development Authority, Multifamily Housing Bonds, 1/08 at 102 AA+ 3,217,645 Series 1997E, 5.600%, 11/01/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 10.8% 215 Washington Public Power Supply System, Nuclear Project No Opt. Call AAA 228,360 No. 1 Revenue Bonds, 14.375%, 7/01/01 9,450 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 AAA 9,566,708 Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1993C: 27,000 5.400%, 7/01/12 7/03 at 102 Aa1 27,086,130 2,970 5.375%, 7/01/15 7/03 at 102 Aa1 2,954,883 11,390 Washington Public Power Supply System, Nuclear Project No. 2 7/03 at 102 Aa1 11,676,459 Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/12 17,700 Washington Public Power Supply System, Nuclear Project No. 2 7/04 at 102 Aa1 18,035,769 Refunding Revenue Bonds, Series 1994A, 5.375%, 7/01/10 20,975 Washington Public Power Supply System, Nuclear Project No. 3 7/01 at 102 Aaa 21,677,663 Refunding Revenue Bonds, Series 1991A, 6.500%, 7/01/18 (Pre-refunded to 7/01/01) Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993B: 11,510 5.625%, 7/01/12 7/03 at 102 Aa1 11,735,711 9,000 5.600%, 7/01/17 7/03 at 102 AAA 9,061,200 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993C: 81,000 5.400%, 7/01/12 7/03 at 102 Aa1 81,258,390 14,850 5.375%, 7/01/15 7/03 at 102 Aa1 14,774,414 - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.4% 7,180 West Virginia Housing Development Fund, Housing Finance Bonds, 11/06 at 102 AAA 7,311,968 Series 1997-A, 6.050%, 5/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.1% 20,385 The Wisconsin Public Power Incorporated System, Power Supply 7/03 at 102 AAA 19,504,164 System Revenue Bonds, Series 1993 A, 5.250%, 7/01/21 2,645 Wisconsin Housing and Economic Development Authority, 3/04 at 102 AA 2,701,495 Homeownership Revenue Bonds, 1994 Series B, 6.750%, 9/01/25 (Alternative Minimum Tax) 17,020 Wisconsin Health and Educational Facilities Authority, Revenue 8/03 at 102 AAA 16,676,872 Bonds (Sisters of the Sorrowful Mother - Ministry Corporation), Series 1993D, 5.500%, 8/15/19 1,750 Wisconsin Health and Educational Facilities Authority, Revenue 8/03 at 102 AAA 1,758,413 Bonds (Sisters of the Sorrowful Mother - Ministry Corporation), Series 1993C, 5.400%, 8/15/13 - ------------------------------------------------------------------------------------------------------------------------------------ $ 2,080,609 Total Investments (cost $1,832,268,760) - 99.3% 1,890,528,644 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.7% 13,438,283 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $1,903,966,927 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements.
Nuveen Municipal Income Fund, Inc. (NMI) Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 7.6% $ 5,530 Adelanto School District (San Bernardino County, California), No Opt. Call AAA $1,629,691 1997 Series A, General Obligation Bonds (Bank Qualified), 0.000%, 9/01/22 Brea Olinda Unified School District (California), General Obligation Bonds, Election of 1999, Series 1999A: 2,000 0.000%, 8/01/21 No Opt. Call AAA 627,500 2,070 0.000%, 8/01/22 No Opt. Call AAA 612,886 2,120 0.000%, 8/01/23 No Opt. Call AAA 592,222 3,000 California Pollution Control Financing Authority, Solid 7/07 at 102 N/R 1,950,000 Waste Disposal Revenue Bonds (CanFibre of Riverside Project), Tax-Exempt Series 1997A, 9.000%, 7/01/19 (Alternative Minimum Tax) 1,150 Foothill/Eastern Transportation Corridor Agency, California, 1/07 at 100 AAA 1,260,377 Toll Road Revenue Bonds, Series 1995A, 6.000%, 1/01/34 (Pre-refunded to 1/01/07) - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 3.7% City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992B: 410 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 Aaa 439,167 (Pre-refunded to 11/15/02) 1,590 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 1,677,863 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 285 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Aaa 302,798 (Pre-refunded to 11/15/01) 780 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 A 822,151 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 6.5% 1,480 Capitol Region Education Council (Connecticut), Revenue Bonds, 10/05 at 102 BBB 1,548,302 6.750%, 10/15/15 3,000 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102 BBB- 3,043,920 Revenue Bonds, University of New Haven Issue, Series D, 6.700%, 7/01/26 1,000 Housing Authority of the City of Willimantic, Multifamily 10/05 at 105 AAA 1,101,910 Housing Revenue Bonds, Series 1995A, GNMA Collateralized Mortgage Loan - Village Heights Apartments Project), 8.000%, 10/20/30 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 5.0% 1,670 Dade County Industrial Development Authority (Florida), Industrial 6/05 at 102 N/R 1,746,369 Development Revenue Bonds, Series 1995 (Miami Cerebral Palsy Residential Services, Inc. Project), 8.000%, 6/01/22 2,000 Martin County Industrial Development Authority (Florida), 12/04 at 102 BBB- 2,023,640 Industrial Development Revenue Bonds (Indiantown Cogeneration L.P. Project), Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax) 600 Martin County Industrial Development Authority (Florida), 12/04 at 102 BBB- 611,184 Industrial Development Revenue Refunding Bonds, Series B, Indiantown Cogeneration Project, 8.050%, 12/15/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 11.8% 4,320 City of Chicago Tax Increment Allocation Bonds (Irving/Cicero 1/09 at 100 N/R 4,237,704 Redevelopment Project), Series 1998, 7.000%, 1/01/14 1,300 Illinois Health Facilities Authority, Revenue Bonds, Series 1993 9/03 at 102 A- 1,372,904 (Northern Illinois Medical Center Project), 6.000%, 9/01/19 2,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 10/03 at 102 A- 1,757,280 Series 1993 (Illinois Masonic Medical Center), 5.500%, 10/01/19 1,145 Illinois Housing Development Authority, Homeowner Mortgage 8/04 at 102 AA 1,168,873 Revenue Bonds, 1994 Series A-2, 6.700%, 8/01/25 (Alternative Minimum Tax) 1,975 Joliet Regional Port District, Airport Facilities Revenue Bonds, 7/07 at 103 N/R 1,926,810 Lewis University Airport, Series 1997A, 7.250%, 7/01/18 (Alternative Minimum Tax) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 9.6% $ 9,000 Whitley County, Indiana, Solid Waste and Sewage Disposal 11/10 at 102 N/R $8,492,400 Revenue Bonds (Steel Dynamics Inc., Project), Series 1998, 7.250%, 11/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 3.5% Louisiana Public Facilities Authority, Extended Care Facilities Revenue Bonds (Comm-Care Corporation Project), Series 1994: 520 11.000%, 2/01/04 No Opt. Call BBB 565,131 2,000 11.000%, 2/01/14 No Opt. Call BBB 2,522,860 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 2.4% 2,000 Anne Arundel County, Maryland, Multifamily Housing Revenue No Opt. Call BBB 2,090,100 Bonds (Twin Coves Apartments Project), Series 1994, 7.450%, 12/01/24 (Alternative Minimum Tax) (Mandatory put 12/01/03) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.6% 3,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,145,170 Revenue Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 3.2% 2,795 Minnesota Housing Finance Agency, Single Family Mortgage 1/07 at 102 AA+ 2,850,089 Bonds, 1995 Series M, 5.875%, 1/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 4.7% 4,500 Mississippi Business Finance Corporation, Pollution Control 10/03 at 102 BBB- 4,142,925 Revenue Refunding Bonds (System Energy Resources, Inc. Project), Series 1998, 5.875%, 4/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.9% 800 New Hampshire Higher Educational and Health Facilities 1/07 at 102 BBB- 762,344 Authority, Revenue Bonds, Series 1997 (New Hampshire College), 6.375%, 1/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 16.6% 1,500 County of Cattaraugus, New York, Industrial Development Agency, No Opt. Call N/R 1,473,960 Tax- Exempt Industrial Development Revenue Bonds, Series 1999A (Laidlaw Energy and Environmental, Inc. Project), 8.500%, 7/01/21 (Alternative Minimum Tax) 5,000 Erie County Industrial Development Agency (New York), 12/10 at 103 N/R 3,500,000 Solid Waste Disposal Facility Revenue Bonds (1998 CanFibre of Lackawanna Project), 8.875%, 12/01/13 (Alternative Minimum Tax) The City of New York, General Obligation Bonds, Fiscal 1996 Series F: 500 5.750%, 2/01/15 2/06 at 101 1/2 A 510,185 1,400 5.750%, 2/01/19 2/06 at 101 1/2 A 1,415,974 1,000 The City of New York, General Obligation Bonds, 2/06 at 101 1/2 A 1,024,590 Fiscal 1996 Series G, 5.750%, 2/01/14 1,250 The City of New York, General Obligation Bonds, 11/06 at 101 1/2 A 1,317,713 Fiscal 1997 Series D, 5.875%, 11/01/11 2,500 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 2,769,100 Brookdale Hospital Medical Center, Secured Hospital Revenue Bonds, 1995 Series A, 6.800%, 8/15/12 (Pre-refunded to 2/15/05) 2,660 UFA Development Corporation, Utica, New York, FHA-Insured 1/07 at 102 Aa2 2,749,748 Mortgage Revenue Bonds, Series 1997A (Loretto-Utica Project), 6.125%, 7/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.2% 1,000 County of Franklin, Ohio, Hospital Facilities Mortgage Revenue 7/03 at 103 AAA 1,057,470 Bonds, 1991 Series A (Ohio Presbyterian Retirement Services), 8.750%, 7/01/21 (Pre-refunded to 7/01/03) - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.8% 685 Oklahoma County Industrial Authority, Revenue Bonds, Oklahoma 1/01 at 100 N/R 687,130 Blood Institute Project, Series 1988, 9.000%, 7/01/03 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 1.1% 1,000 State of Oregon, Housing and Community Services Department, 7/07 at 101 1/2 Aa2 976,670 Mortgage Revenue Bonds (Single-Family Mortgage Program), 1997 Series H, 5.650%, 7/01/28 (Alternative Minimum Tax) Nuveen Municipal Income Fund, Inc. (NMI) (continued) Portfolio of INVESTMENTS October 31, 2000 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 3.2% $ 1,750 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- $1,781,413 Resource Recovery Revenue Refunding Bonds, 2000 Series (Panther Creek Partners Project), 6.650%, 5/01/10 (Alternative Minimum Tax) 1,000 Pennsylvania Convention Center Authority, Refunding Revenue 9/04 at 102 BBB 1,035,600 Bonds, 1994 Series A, 6.750%, 9/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 6.0% 1,055 Alliance Airport Authority, Inc., Special Facilities Revenue 12/00 at 102 Baa1 1,077,155 Bonds, Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax) 665 Hidalgo County Housing Finance Corporation (Florida), 4/04 at 102 Aaa 682,975 Single Family Mortgage Revenue Bonds (GNMA and FNMA Collateralized), Series 1994A, 7.000%, 10/01/27 (Alternative Minimum Tax) 3,000 Laredo Independent School District (Webb County, Texas), 8/09 at 100 AAA 2,868,420 Unlimited Tax School Building Bonds, Series 1999, 5.250%, 8/01/24 West Independent School District (McLennan and Hill Counties, Texas), Unlimited Tax School Building and Refunding Bonds, Series 1998: 1,000 0.000%, 8/15/25 8/13 at 51 27/32 AAA 222,790 1,000 0.000%, 8/15/26 8/13 at 49 3/32 AAA 209,690 1,000 8/15/27 8/13 at 46 15/32 AAA 197,210 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 1.5% 1,240 Housing Authority of the City of Bellingham, Washington, 11/04 at 100 A1*** 1,347,137 Housing Revenue Bonds, Series 1994 (Cascade Meadows Project), 7.100%, 11/01/23 (Pre-refunded to 11/01/04) - ------------------------------------------------------------------------------------------------------------------------------------ $ 94,245 Total Investments (cost $83,285,639) - 92.9% 81,929,500 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 4.5% $ 4,000 East Baton Rouge Parish (Exxon Project), Variable Rate Demand A-1+ 4,000,000 ============= Bonds, 4.600%, 3/01/22+ -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.6% 2,284,751 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $88,214,251 ==================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
Statement of NET ASSETS October 31, 2000
MUNICIPAL VALUE MUNICIPAL INCOME (NUV) (NMI) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments in municipal securities, at market value $1,890,528,644 $81,929,500 Temporary investments in short-term municipal securities, at amortized cost, which approximates market value -- 4,000,000 Cash 3,617,430 -- Receivables: Interest 36,719,899 2,022,071 Investments sold 1,851,900 2,911,225 Other assets 38,079 2,747 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 1,932,755,952 90,865,543 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft -- 2,080,790 Payable for investments purchased 18,468,468 -- Accrued expenses: Management fees 892,915 48,837 Other 1,141,915 53,241 Dividends payable 8,285,727 468,424 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 28,789,025 2,651,292 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets $1,903,966,927 $88,214,251 ==================================================================================================================================== Shares outstanding 194,959,520 8,010,098 ==================================================================================================================================== Net asset value per share outstanding (net assets divided by shares outstanding) $ 9.77 $ 11.01 ==================================================================================================================================== See accompanying notes to financial statements.
Statement of OPERATIONS Year Ended October 31, 2000
MUNICIPAL VALUE MUNICIPAL INCOME (NUV) (NMI) - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $113,116,974 $ 6,282,215 - ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 10,495,940 583,276 Shareholders' servicing agent fees and expenses 492,962 23,432 Custodian's fees and expenses 226,548 47,705 Directors' fees and expenses 21,106 2,901 Professional fees 104,486 4,858 Shareholders' reports - printing and mailing expenses 184,841 13,284 Stock exchange listing fees 161,622 16,381 Investor relations expense 248,083 11,943 Other expenses 136,013 11,667 - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit 12,071,601 715,447 Custodian fee credit (124,005) (20,130) - ----------------------------------------------------------------------------------------------------------------------------------- Net expenses 11,947,596 695,317 - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income 101,169,378 5,586,898 - ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions 4,597,296 (476,451) Change in net unrealized appreciation (depreciation) of investments 50,413,638 (2,382,682) - ----------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) from investments 55,010,934 (2,859,133) - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $156,180,312 $ 2,727,765 =================================================================================================================================== See accompanying notes to financial statements.
Statement of CHANGES IN NET ASSETS
MUNICIPAL VALUE (NUV) MUNICIPAL INCOME (NMI) ----------------------------------- -------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/00 10/31/99 10/31/00 10/31/99 - ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 101,169,378 $ 99,695,445 $ 5,586,898 $ 5,550,581 Net realized gain (loss) from investment transactions 4,597,296 (646,778) (476,451) 461,435 Net change in unrealized appreciation (depreciation) of investments 50,413,638 (156,397,771) (2,382,682) (5,266,839) - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 156,180,312 (57,349,104) 2,727,765 745,177 - ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From undistributed net investment income (99,546,449) (99,429,121) (5,579,745) (5,487,947) From accumulated net realized gains from investment transactions -- (18,170,228) (461,215) (592,941) - ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (99,546,449) (117,599,349) (6,040,960) (6,080,888) - ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- 404,802 702,675 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 56,633,863 (174,948,453) (2,908,393) (4,633,036) Net assets at the beginning of year 1,847,333,064 2,022,281,517 91,122,644 95,755,680 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets at the end of year $1,903,966,927 $1,847,333,064 $88,214,251 $91,122,644 =================================================================================================================================== Balance of undistributed net investment income at the end of year $ 2,109,241 $ 486,312 $ 194,048 $ 186,895 =================================================================================================================================== See accompanying notes to financial statements.
Notes to FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The National Funds (the "Funds") covered in this report and their corresponding New York Stock Exchange symbols are Nuveen Municipal Value Fund, Inc. (NUV) and Nuveen Municipal Income Fund, Inc. (NMI). 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 accounting principles generally accepted in the United States. Securities Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved 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 have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. 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 have extended settlement periods. 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 the when-issued and delayed delivery purchase commitments. At October 31, 2000, Municipal Value (NUV) had outstanding when-issued purchase commitments of $18,117,345. There were no such outstanding purchase commitments in Municipal Income (NMI). Investment 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 $.001 per 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. All income dividends paid during the fiscal year ended October 31, 2000, have been designated Exempt Interest Dividends. Net realized capital gain and market discount distributions are subject to federal taxation. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend and payment is made or reinvestment is credited to shareholder accounts on the first business day after month-end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. 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 accounting principles generally accepted in the United States. 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. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Derivative Financial Instruments The Funds may invest in transactions in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the fiscal year ended October 31, 2000. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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. Actual results may differ from those estimates. 2. FUND SHARES Transactions in shares were as follows:
MUNICIPAL VALUE (NUV) MUNICIPAL INCOME (NMI) ------------------------ ------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/00 10/31/99 10/31/00 10/31/99 - ----------------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions -- -- 35,420 57,857 ===========================================================================================================
3. DISTRIBUTIONS TO SHAREHOLDERS The Funds declared dividend distributions from their tax-exempt net investment income which were paid on December 1, 2000, to shareholders of record on November 15, 2000, as follows:
MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - --------------------------------------------------------------------------------------------------------- Dividend per share $.0425 $.0585 - ---------------------------------------------------------------------------------------------------------
Notes to FINANCIAL STATEMENTS (continued) 4. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities and short-term municipal securities for the fiscal year ended October 31, 2000, were as follows:
MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - --------------------------------------------------------------------------------------------------------- Purchases: Long-term municipal securities $339,088,810 $ 5,065,866 Short-term municipal securities 46,270,000 10,100,000 Sales and maturities: Long-term municipal securities 317,754,336 9,635,144 Short-term municipal securities 46,270,000 6,100,000 =========================================================================================================
At October 31, 2000, the identified cost of investments owned for federal income tax purposes were as follows:
MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - --------------------------------------------------------------------------------------------------------- $1,832,415,316 $87,285,639 =========================================================================================================
At October 31, 2000, Municipal Income (NMI) had unused capital loss carryforwards of $476,451 available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire in the year 2008. 5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments for federal income tax purposes at October 31, 2000, were as follows:
MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - --------------------------------------------------------------------------------------------------------- Gross unrealized: appreciation $ 83,327,269 $ 2,503,224 depreciation (25,213,941) (3,859,363) - --------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) $ 58,113,328 $(1,356,139) =========================================================================================================
6. MANAGEMENT FEES 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 assets of each Fund as follows: AVERAGE DAILY NET ASSETS MUNICIPAL VALUE (NUV) - -------------------------------------------------------------------------------- For the first $500 million .3500 of 1% For the next $500 million .3250 of 1 For net assets over $1 billion .3000 of 1 =============================================================================== AVERAGE DAILY NET ASSETS MUNICIPAL INCOME (NMI) - ------------------------------------------------------------------------------- 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 =============================================================================== In addition, Municipal Value (NUV) pays an annual management fee, payable monthly, based on gross interest income as follows: GROSS INTEREST INCOME MUNICIPAL VALUE (NUV) - ------------------------------------------------------------------------------- For the first $50 million 4.125% For the next $50 million 4.000 For gross income over $100 million 3.875 =============================================================================== The fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Directors who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser. 7. COMPOSITION OF NET ASSETS At October 31, 2000, net assets consisted of:
MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ------------------------------------------------------------------------------------------------------------- Shares, $.01 par value per share $ 1,949,595 $ 80,101 Paid-in surplus 1,837,697,688 89,772,692 Balance of undistributed net investment income 2,109,241 194,048 Accumulated net realized gain (loss) from investment transactions 3,950,519 (476,451) Net unrealized appreciation (depreciation) of investments 58,259,884 (1,356,139) - ------------------------------------------------------------------------------------------------------------- Net assets $1,903,966,927 $88,214,251 ============================================================================================================= Authorized shares 350,000,000 200,000,000 =============================================================================================================
Notes to FINANCIAL STATEMENTS (continued) 8. INVESTMENT COMPOSITION At October 31, 2000, the revenue sources by municipal purpose, expressed as a percent of long-term investments, were as follows:
MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - --------------------------------------------------------------------------------------------------------- Basic Materials --% 10% Education and Civic Organizations 2 5 Healthcare 15 5 Housing/Multifamily 3 4 Housing/Single Family 5 7 Long-Term Care 1 9 Tax Obligation/General 6 14 Tax Obligation/Limited 10 8 Transportation 13 7 U.S. Guaranteed 11 9 Utilities 27 22 Water and Sewer 7 -- - --------------------------------------------------------------------------------------------------------- 100% 100% =========================================================================================================
Certain long-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 (39% for Municipal Value (NUV) and 13% for Municipal Income (NMI)). Such insurance or escrow, however, does not guarantee the market value of the municipal securities or the value of the Funds' shares. For additional information regarding each investment security, refer to the Portfolio of Investments of each Fund. Financial HIGHLIGHTS Selected data for a share outstanding throughout each year ended October 31:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ---------------------------------- -------------------------------- NET REALIZED/ BEGINNING NET UNREALIZED NET NET ASSET INVESTMENT INVESTMENT INVESTMENT CAPITAL VALUE INCOME GAIN (LOSS) TOTAL INCOME GAINS TOTAL MUNICIPAL VALUE (NUV) Year Ended 10/31: 2000 $ 9.48 $.52 $ .28 $ .80 $(.51) $ -- $(.51) 1999 10.37 .51 (.80) (.29) (.51) (.09) (.60) 1998 10.29 .53 .21 .74 (.53) (.13) (.66) 1997 10.18 .58 .22 .80 (.58) (.11) (.69) 1996 10.29 .61 (.03) .58 (.61) (.08) (.69) MUNICIPAL INCOME (NMI) Year Ended 10/31: 2000 11.43 .70 (.36) .34 (.70) (.06) (.76) 1999 12.10 .70 (.61) .09 (.69) (.07) (.76) 1998 12.02 .71 .11 .82 (.71) (.03) (.74) 1997 11.96 .76 .11 .87 (.76) (.05) (.81) 1996 11.97 .77 (.02) .75 (.76) -- (.76) TOTAL RETURNS ----------------------------- ENDING NET ASSET ENDING BASED ON BASED ON NET VALUE MARKET VALUE MARKET VALUE+ ASSET VALUE+ MUNICIPAL VALUE (NUV) Year Ended 10/31: 2000 $ 9.77 $ 8.5625 5.46% 8.71% 1999 9.48 8.6250 (7.50) (2.94) 1998 10.37 9.9375 10.55 7.49 1997 10.29 9.6250 10.39 8.18 1996 10.18 9.3750 3.10 5.84 MUNICIPAL INCOME (NMI) Year Ended 10/31: 2000 11.01 11.2500 9.45 3.02 1999 11.43 11.0000 (5.77) .74 1998 12.10 12.4375 5.21 7.06 1997 12.02 12.5625 11.96 7.60 1996 11.96 12.0000 12.42 6.49 RATIOS/SUPPLEMENTAL DATA ---------------------------------------------------------------------------------- BEFORE CREDIT AFTER CREDIT* ------------------------- --------------------------- RATIO OF NET RATIO OF NET RATIO OF INVESTMENT RATIO OF INVESTMENT ENDING EXPENSES INCOME TO EXPENSES INCOME TO PORTFOLIO NET ASSETS TO AVERAGE AVERAGE TO AVERAGE AVERAGE TURNOVER (000) NET ASSETS NET ASSETS NET ASSETS NET ASSETS RATE MUNICIPAL VALUE (NUV) Year Ended 10/31: 2000 $1,903,967 .65% 5.44% .64% 5.44% 17% 1999 1,847,333 .65 5.09 .65 5.10 13 1998 2,022,282 .65 5.18 .65 5.18 19 1997 2,005,380 .68 5.71 .68 5.71 19 1996 1,984,627 .69 5.98 .69 5.98 18 MUNICIPAL INCOME (NMI) Year Ended 10/31: 2000 88,214 .80 6.20 .77 6.23 6 1999 91,123 .82 5.88 .82 5.89 31 1998 95,756 .82 5.91 .82 5.91 23 1997 94,283 .83 6.39 .83 6.39 9 1996 93,249 .80 6.49 .80 6.49 10 * After custodian fee credit, where applicable. + Total 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. Total returns are not annualized. See accompanying notes to financial statements.
Build Your Wealth AUTOMATICALLY NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvest-ment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBILITY You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial adviser or call us at (800) 257-8787. Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. Fund INFORMATION BOARD OF DIRECTORS Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale FUND MANAGER Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN, TRANSFER AGENT AND SHAREHOLDER SERVICES The Chase Manhattan Bank 4 New York Plaza New York, NY 10004-2413 (800) 257-8787 LEGAL COUNSEL Morgan, Lewis & Bockius LLP Washington, D.C. INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL Each fund intends to repurchase shares of its own common stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the 12-month period ended October 31, 2000. Any future repurchases will be reported to shareholders in the next annual or semiannual report. Serving Investors FOR GENERATIONS PHOTO OF: John Nuveen, Sr. For over a century, generations of Americans have relied on Nuveen Investments to help them grow and keep the money they've earned. Financial advisors, investors and their families have associated Nuveen Investments with quality, expertise and dependability since 1898. That is why financial advisors have entrusted the assets of more than 1.3 million investors to Nuveen. With the know-how that comes from a century of experience, Nuveen continues to build upon its reputation for quality. Now, financial advisors and investors can count on Nuveen Investments to help them design customized solutions that meet the far-reaching financial goals unique to family wealth strategies - solutions that can translate into legacies. To find out more about how Nuveen Investments' products and services can help you preserve your financial security, talk with your financial advisor, or call us at (800) 257-8787 for more information, including a prospectus where applicable. Please read that information carefully before you invest. LOGO: Invest well. Look ahead. LEAVEYOURMARK.(SM) NUVEEN Investments Nuveen Investments o 333 West Wacker Drive FAN-1-10-00 Chicago, IL 60606 o www.nuveen.com -----END PRIVACY-ENHANCED MESSAGE-----