-----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, VboAI+6+b8O9JXgB9KC8l2Qsrn5k0iyGiv3nyjNFgSwaBgcUU8Gx4hUY/S8vXafm usa+emH1+FCEBBecvI8QRA== 0000891804-02-001298.txt : 20020703 0000891804-02-001298.hdr.sgml : 20020703 20020703092547 ACCESSION NUMBER: 0000891804-02-001298 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020430 FILED AS OF DATE: 20020703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN MUNICIPAL VALUE FUND INC CENTRAL INDEX KEY: 0000812801 STATE OF INCORPORATION: MN FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05120 FILM NUMBER: 02695597 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 nv26768.txt FSA-1-4-02 SEMIANNUAL REPORT April 30, 2002 Nuveen Municipal Closed-End Exchange-Traded Funds MUNICIPAL VALUE FUND NUV MUNICIPAL INCOME FUND NMI Dependable, tax-free income because it's not what you earn, it's what you keep.(R) THE NUVEEN INVESTOR SEE PAGE 7 LOGO: NUVEEN INVESTMENTS photo: girls reading photo: woman reading to children RECEIVE YOUR NUVEEN FUND UPDATES FASTER THAN EVER! By registering for online access, you can view and save on your computer the Fund information you currently receive in the mail. This information then can be retrieved any time, and you can select only the specific pages you want to view or print. Once you sign up, you'll receive an e-mail notice the moment Fund reports are ready. This notice will contain a link to the report - all you have to do is click on the Internet address provided. You'll be saving time, as well as saving printing and distribution expenses for your Fund. Registering for electronic access is easy and only takes a few minutes. (see instructions at right) Your e-mail address is strictly confidential and will not be used for anything other than notifications of shareholder information. And if you decide you don't like receiving your reports electronically, it's a simple process to go back to regular mail delivery. Logo: NUVEEN Investments SIGN UP TODAY -- HERE'S ALL YOU NEED TO DO... IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME FROM YOUR FINANCIAL ADVISOR BROKERAGE ACCOUNT, FOLLOW THE STEPS OUTLINED BELOW: 1 G0 to WWW.INVESTORDELIVERY.COM 2 Look at the address sheet that accompanied this report. Enter the personal 13-CHARACTER ENROLLMENT NUMBER imprinted near your name on the address sheet. 3 You'll be taken to a page with several options. Select the NEW ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g. yourID@providerID.com), and a personal, 4-digit PIN of your choice. (Pick a number that's easy to remember.) 4 Click Submit. Confirm the information you just entered is correct, then click Submit again. 5 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 6 Use this same process if you need to change your registration information or cancel Internet viewing. IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME DIRECTLY TO YOU FROM NUVEEN, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.NUVEEN.COM 2 Select the Access Account tab. Select the E-REPORT ENROLLMENT section. Click on Enrollment Page. 3 You'll be taken to a screen that asks for your Social Security number and e-mail address. Fill in this information, then click Enroll. 4 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5 Use this same process if you need to change your registration information or cancel Internet viewing. Photo of: Timothy R. Schwertfeger Chairman of the Board SIDEBAR TEXT: "I URGE YOU TO CONSIDER RECEIVING FUTURE FUND REPORTS AND OTHER INFORMATION ELECTRONICALLY ...SEE THE INSIDE FRONT COVER OF THIS REPORT FOR DETAILED INSTRUCTIONS." Dear SHAREHOLDER I am pleased to report that during the period covered by this report, your Fund continued to meet its primary objective of providing attractive tax-free monthly income, while at the same time offering opportunities to reduce overall portfolio volatility. Detailed information on your Fund's performance can be found in the Portfolio Managers' Comments and Performance Overview sections of this report. I urge you to take the time to read them. I also urge you to consider receiving future Fund reports and other information electronically via the Internet and e-mail rather than in hard copy. Not only will you be able to receive the information faster, but this also may help lower Fund expenses. Sign up is quick and easy - see the inside front cover of this report for detailed instructions. In addition to providing you with steady tax-free income, your Nuveen Fund also features several characteristics that can help make it an essential part of your overall investment strategy. These include careful research, constant surveillance and judicious trading by Nuveen's seasoned portfolio management team, with every action designed to supplement income, improve Fund structure, better adapt to current market conditions or increase diversification. In uncertain markets like these, prudent investors understand the importance of diversification, balance, and risk management, all attributes your Nuveen Fund can bring to your portfolio. For more than 100 years, Nuveen has specialized in offering quality investments such as these Nuveen Funds to those seeking to accumulate and preserve wealth. Our mission continues to be to assist you and your financial advisor by offering the investment services and products that can help you meet your financial objectives. We thank you for continuing to choose Nuveen Investments as a partner as you work toward that goal. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board June 15, 2002 Nuveen National Municipal Closed-End Exchange-Traded Funds (NUV, NMI) Portfolio Managers' COMMENTS Portfolio managers Tom Spalding and John Miller examine economic and market conditions, key investment strategies, and the performance of the Nuveen Municipal Value Fund, Inc. (NUV) and the Nuveen Municipal Income Fund, Inc. (NMI). Tom, who has 25 years of investment experience with Nuveen, has managed NUV since its inception in 1987. John is a 6-year veteran of Nuveen and assumed portfolio management responsibility for NMI in 2001. WHAT WERE THE MAJOR DRIVERS OF THE U.S. ECONOMY AND THE MUNICIPAL MARKET DURING THIS REPORTING PERIOD? The two major forces at work during the twelve months ended April 30, 2002, were the general slowdown in economic growth and the Federal Reserve's aggressive easing of short-term interest rates. In addition, the events of September 11, 2001, and the uncertain geopolitical climate that followed also have impacted the economy and the markets. In the municipal markets, the generally sluggish economic environment of the past twelve months helped many securities perform well. In addition, the trend toward increased issuance remained strong. Looking at the first four months of 2002, new issue supply reached $87 billion, up about 10% over January-April 2001. On the demand side, municipal bonds continued to be highly sought after by individual investors looking for diversification, tax-free income and an alternative to a volatile stock market. Institutional investors, especially traditional purchasers such as property/casualty insurance companies and arbitrage funds, also have been active buyers in the new issue market. HOW DID THESE TWO NUVEEN FUNDS PERFORM OVER THE PAST TWELVE MONTHS? For the year ended April 30, 2002, NUV and NMI produced total annual returns on net asset value (NAV) as shown in the accompanying table. The annual returns for the Lehman Brothers Municipal Bond Index1 and relevant Lipper Peer Group2 are also presented. TOTAL RETURN LEHMAN LIPPER MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2 - ----------------------------------------------------------------------------- 1 YEAR 1 YEAR 1 YEAR TAXABLE- ENDED ENDED ENDED 4/30/02 EQUIVALENT3 4/30/02 4/30/02 4/30/02 - ----------------------------------------------------------------------------- NUV 5.45% 7.79% 6.34% 7.00% 5.26% - ----------------------------------------------------------------------------- NMI 5.85% 8.36% 5.80% 7.00% 5.26% - ----------------------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. Over the reporting period, the Fed's policy to reduce short-term interest rates, combined with generally favorable market conditions, created a positive total return environment for municipal bonds. The Funds' participation in the market gains is reflected, in part, in the total returns on NAV listed in the previous table. In a market characterized by rising bond values and falling yields, we believe that an unmanaged index with a slightly longer duration4 typically would be expected to outperform managed funds with shorter durations. As of April 30, 2002, the duration of the Lehman Municipal Bond Index was 7.74, compared with 6.24 and 7.45, respectively, for NUV and NMI. 1 The performances of NUV and NMI are compared 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 these Funds are compared with the average annualized return of the eleven 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 30%. 4 Duration is a measure of a Fund's NAV volatility in reaction to interest rate movements. While general market conditions and duration were two drivers of total return performance over the past twelve months, the structures and individual holdings of these Funds also influenced their results. For example, credit issues involving bonds issued by the California Pollution Control Financing Authority for the CanFibre of Riverside project continued to impact NMI's return. NMI also continued to hold bonds issued by the Erie County (New York) Industrial Development Agency for CanFibre of Lackawanna. We are monitoring these holdings very closely and believe they may be close to resolutions that ultimately will benefit shareholders of the Fund. It is important to note that, despite these credit issues, NMI continues to offer shareholders an attractive return, as well as tax-free dividends paid on a monthly basis. HOW DID THE MARKET ENVIRONMENT AFFECT THESE FUNDS' DIVIDENDS AND SHARE PRICES? As of April 30, 2002, NUV had provided shareholders with 42 consecutive months of steady dividends. For NMI, a reduced income stream resulting from the previously mentioned credit issues, as well as the investment of bond call proceeds at generally lower current rates, led to a series of dividend adjustments over the past twelve months. During the past year, the share price of NUV showed modest improvement, while the share price of NMI showed some expected softness. As of April 30, 2002, both Funds traded at share prices that were moderately less than their per share net asset values. WHAT KEY STRATEGIES WERE USED TO MANAGE NUV AND NMI DURING THE YEAR ENDED APRIL 30, 2002? In both Funds, our primary focuses were to support their long-term dividend-paying capabilities, add value whenever possible, and enhance overall diversification. Sectors that seemed to offer the most opportunities included essential services (such as bonds backing water and sewer systems), healthcare, and certain bonds supported by local or state sales taxes. Generally, we were less involved over this period with general obligation and industrial development bonds. Managing call exposure also remained an important consideration. In most cases, we chose to retain callable bonds with relatively high coupons in order to help support the Funds' dividend-paying capabilities. However, we did make some adjustments in both portfolios when we saw attractive replacement opportunities. As a result, the durations of both Funds lengthened slightly over the past six months. Given the desire for quality among many investors and financial advisors in the current economic environment, NUV continued to offer strong credit quality during this period. As of April 30, 2002, more than 80% of NUV's portfolio was rated A or better. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL, AND FOR NUV AND NMI IN PARTICULAR? In general, our outlook for the fixed-income markets over the next twelve months remains positive. We believe the U.S. economy is headed for recovery, but one that may take longer and see a slower pace of growth than some are now predicting. We believe inflation and interest rates should remain relatively low over the near term, and we think new municipal issuance should continue to be strong. We anticipate the demand for tax-exempt municipal bonds will remain firm as investors look for ways to rebalance their portfolios and reduce risk. We plan to remain focused on strategies that add value for our shareholders, provide support for the Funds' dividends, and fully utilize Nuveen's experience and research expertise. Shareholders can expect to see these Funds' durations lengthen somewhat as part of the normal process of reinvesting proceeds from called bonds into intermediate and longer-term issues. The number of actual calls experienced by these Funds will depend largely on market interest rates over this period. In general, we believe the call exposure within both Funds is very manageable. Overall, we believe NUV and NMI can continue to play an important role in investors' long-range financial programs, providing balance and diversification, dependable tax-free income, and a measure of security in uncertain times. We believe NUV and NMI currently are well diversified and well positioned for the market environment ahead, and we will continue to closely monitor and respond to events as appropriate. Nuveen Municipal Value Fund, Inc. Performance OVERVIEW As of April 30, 2002 NUV [PIE CHART] CREDIT QUALITY AAA/U.S. GUARANTEED 44% AA 21% A 17% BBB 11% NR 3% OTHER 4% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $9.36 - -------------------------------------------------- Net Asset Value $9.99 - -------------------------------------------------- Market Yield 5.45% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.79% - -------------------------------------------------- Net Assets ($000) $1,947,651 - -------------------------------------------------- Average Effective Maturity (Years) 19.03 - -------------------------------------------------- Average Duration 6.24 - -------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 6/87) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 8.91% 6.34% - -------------------------------------------------- 5-Year 6.31% 5.91% - -------------------------------------------------- 10-Year 5.02% 6.02% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Utilities 31% - -------------------------------------------------- Healthcare 15% - -------------------------------------------------- Tax Obligation/Limited 11% - -------------------------------------------------- Transportation 9% - -------------------------------------------------- U.S. Guaranteed 8% - -------------------------------------------------- [BAR CHART] 2001-2002 Monthly Tax-Free Dividends Per Share2 5/01 0.0425 6/01 0.0425 7/01 0.0425 8/01 0.0425 9/01 0.0425 10/01 0.0425 11/01 0.0425 12/01 0.0425 1/02 0.0425 2/02 0.0425 3/02 0.0425 4/02 0.0425 [LINE CHART] Share Price Performance Weekly Closing Price Past performance is not predictive of future results. 5/1/01 9.11 9.07 9.16 9.1 9.2 9.26 9.24 9.23 9.22 9.2 9.25 9.31 9.28 9.36 9.47 9.46 9.53 9.54 9.55 9.55 8.9 9.26 9.46 9.22 9.38 9.42 9.5 9.58 9.3 9.25 9.41 9.23 9.15 9.11 9.16 9.15 9.25 9.4 9.4 9.52 9.46 9.54 9.55 9.64 9.41 9.32 9.1 9.22 9.28 9.25 9.27 4/30/02 9.29 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 30%. 2 The Fund also paid shareholders a capital gains distribution in December 2001 of $0.0074 per share. Nuveen Municipal Income Fund, Inc. Performance OVERVIEW As of April 30, 2002 NMI [PIE CHART] CREDIT QUALITY AAA/U.S. GUARANTEED 22% AA 3% A 8% BBB 32% NR 27% OTHER 8% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $10.25 - -------------------------------------------------- Net Asset Value $10.70 - -------------------------------------------------- Market Yield 5.85% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.36% - -------------------------------------------------- Net Assets ($000) $86,515 - -------------------------------------------------- Average Effective Maturity (Years) 18.47 - -------------------------------------------------- Average Duration 7.45 - -------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 4/88) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year -6.39% 5.80% - -------------------------------------------------- 5-Year 3.32% 4.44% - -------------------------------------------------- 10-Year 4.18% 5.51% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Healthcare 19% - -------------------------------------------------- Utilities 18% - -------------------------------------------------- Tax Obligation/Limited 11% - -------------------------------------------------- Basic Materials 9% - -------------------------------------------------- U.S. Guaranteed 8% - -------------------------------------------------- [BAR CHART] 2001-2002 Monthly Tax-Free Dividends Per Share 5/01 0.0585 6/01 0.0585 7/01 0.0585 8/01 0.0585 9/01 0.056 10/01 0.056 11/01 0.056 12/01 0.053 1/02 0.053 2/02 0.053 3/02 0.05 4/02 0.05 [LINE CHART] Share Price Performance Weekly Closing Price Past performance is not predictive of future results. 5/1/01 11.7 11.91 11.95 11.56 11.65 11.71 11.8 11.82 11.94 11.9 12.01 11.98 11.95 12.04 12.1 11.91 12.04 12.05 11.95 11.9 11.36 11.64 11.67 11.89 11.9 11.82 11.96 11.89 11.93 11.96 11.8 11.2 11.1 10.89 10.95 10.92 11.24 11.24 11.25 11.25 11.13 11.03 11 11.18 11.14 10.82 10.57 10.49 10.49 10.26 10.27 4/30/02 10.11 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 30%. THE NUVEEN INVESTOR PHOTO OF: 2 boys walking with baseball mitts and bat. Bond surveillance - a HIGH PRIORITY at NUVEEN The Enron scandal has raised numerous questions about the real value of American securities. Investors want to know what safeguards are in place to inspire their trust and ensure their holdings are dependable. The Nuveen Investor recently spoke with David Blair, Assistant Vice President and Senior Analyst at Nuveen, about the research and surveillance processes used for Nuveen funds. HOW DO NUVEEN'S RESEARCH ANALYSTS EVALUATE BONDS PRIOR TO PURCHASE? We evaluate factors impacting market sectors, issuers and specific bonds and assign credit ratings to bonds we consider for purchase. We seek to purchase bonds with stable and improving credit characteristics, which have attractive prices and yields relative to other bonds in their sectors. HOW DO YOU CONDUCT YOUR RESEARCH? We conduct detailed analyses that often involve site visits and discussions with managers of the projects being financed. Since Nuveen is a major investor with large buying power, issuers and project managers are willing to listen to us and respond to our concerns. IS THE RESEARCH AND ANALYSIS PROCESS ANY DIFFERENT WHEN CONSIDERING HIGH-YIELD BONDS? Up to 20 percent of some funds can be invested in below investment grade bonds to help the fund attain a higher yield. This underscores the need for research. If one of our 16 analysts believes a high-yield bond should be purchased, a second analyst reviews the issue as well. HOW DO YOU MONITOR THE VARIOUS BONDS ONCE THEY'VE BEEN PURCHASED? We have a proprietary database with information and analysis on the bonds Nuveen holds in its funds. Among other things, we are able to evaluate risk exposure to sectors, issuers and specific bonds on an on-going basis. HOW DOES THE RESEARCH DEPARTMENT COMMUNICATE THE INFORMATION GATHERED? We conduct biweekly meetings within the research department and weekly meetings with portfolio managers. We also write-up our findings and distribute them with "buy," "hold" or "sell" recommendations to portfolio managers. (continued on page 9) Volume one 2002 INSIDE 7 Bond Surveillance - A High Priority at Nuveen 8 Is it Time to Rethink Your Bond Strategy? 9 Many Investors Continue to Find Solutions with Professional Advice 10 Fund Reports Available Online 10 ETFConnect: The Source for All Exchange-Traded Funds (C)2002 Nuveen Investments. All rights reserved. LOGO: NUVEEN INVESTMENTS IS IT TIME TO RETHINK YOUR BOND STRATEGY? Significant stock market losses in recent history have sent many investors toward bonds as a way to potentially cut their losses and balance equity-dominated portfolios. While many consider bonds a set-and-forget investment, there are several circumstances that might prompt you to reassess -- and perhaps revamp -- your bond holdings. TAX BRACKET CHANGES The Economic Growth and Tax Relief Reconciliation Act of 2001 has dropped tax brackets a percentage point this year, but a higher salary, large bonus, sale of assets or retirement may push you into a higher tax bracket for 2002. If you are in a higher tax bracket and want to generate an income stream without raising your tax burden, tax-free municipal bonds may be a prudent option. Even if you are in a lower tax bracket, municipal bonds could make sense. The question is whether municipal or taxable bonds will deliver a better taxable yield. RETIREMENT PLANS CHANGE Whether you are near retirement or are currently enjoying it, you may want to consider rebalancing your retirement accounts with less stock and more bonds, to potentially reduce risk and try to preserve the assets that you have accumulated. If you are just entering retirement you may want to make tax-free municipal bonds a part of your portfolio to emphasize income generation and protection from taxation. RISK TOLERANCE CHANGES The recent market volatility and market downturn may have caused many investors to reevaluate their tolerance for risk. On the other hand, your portfolio might have performed well over the last few years and you may not need to take on extra risk to meet your long-term goals. In either situation you could take a look at your bond portfolio and determine whether you need to make changes to correspond with your tolerance for risk. PORTFOLIO CHANGES If you make significant changes to one or more of your investments, you'll want to look at your portfolio as a whole, particularly with regard to overall asset allocation. You may need to do some rebalancing to stay on track with your investment strategy. Your financial advisor can help. Regardless of how your circumstances change, he or she can provide up-to-date information on the bond market and various funds to help you decide how to maximize your returns consistent with your short- and long-term financial goals. No investment is risk free and some investments carry more risk than others. It is important to know what the risks are, to evaluate them against any potential rewards, and to determine your tolerance for risk when selecting an investment. Photo of: bridge to lighthouse Photo of: 2 toddlers playing The Nuveen Investor Vol 02.1 LOGO: Nuveen Investments photo: clouds photo: woman and girl MANY INVESTORS CONTINUE to find solutions with PROFESSIONAL ADVICE For many investors, current financial markets are confusing and frustrating. According to research conducted for the Forum for Investor Advice*, that's the number one reason many turn to a financial advisor. They want someone to suggest ideas and provide consultation, dialogue and professional advice. Investors say their advisors are helpful in other key ways, including... O Saving time. After consultation, investors note that the second most important reason for using an advisor is to have someone else monitor their portfolio, reducing the amount of time they spend on investing. O Help in sorting through information. Investors in the 21st century have more products from which to choose than in the past. For example, there are approximately 8,000 mutual funds today, up from 3,000 in 1990. O Assistance in setting financial goals. According to investors who use a financial advisor, they are more likely to have a plan for a specific financial goal than do-it-yourself investors. O Staying focused. Advisor-assisted investors are more likely than do-it-yourself investors to have developed a comprehensive investment program. O Peace of mind. Investors say their comfort level in all types of markets is higher when using an advisor for a "second opinion" on an investment decision. *The survey of 324 investors was conducted in December of 2000 by Market Facts and analyzed by New York based Neuwirth Research. Of the 324, 166 said they had an ongoing relationship with a financial advisor, while 157 described themselves as do-it-yourselfers. - -------------------------------------------------------------------------------- (continued from page 7) HOW ARE PROBLEM BONDS IDENTIFIED AND HANDLED? We conduct surveillance on our bonds on a regular basis to ensure, among other things, that deteriorating bonds are identified early. We then discuss any emerging problems and potential courses of action with the portfolio manager. HOW MANY ISSUES DOES THE RESEARCH DEPARTMENT FOLLOW? We follow 12 sectors and 1,500 uninsured bonds, worth about $18 billion of Nuveen's $45 billion in total municipal assets. The remaining $27 billion in municipal assets are insured or escrowed (backed by Treasury bonds). For the insured bonds, we monitor closely on a regular basis the insurers guaranteeing the bonds. WILL RESEARCH AND SURVEILLANCE CHANGE IN LIGHT OF PROBLEMS WITH ENRON SECURITIES? Overall, our investment process and surveillance have worked well and been effective. However, we meet as a group on a regular basis and are constantly evaluating ways to improve the process to respond to issues and the market environment. The Nuveen Investor Vol 02.1 LOGO: Nuveen Investments LOOK AHEAD... FUND REPORTS AVAILABLE ONLINE Nuveen Fund information is now available online. Once you register, you'll receive an e-mail notice with a link to your Fund's reports and other information just as soon as it is ready. Registering takes only a few minutes. If you receive statements from a brokerage firm or financial advisor, go to WWW.INVESTORDELIVERY.COM. Enter your personal 13-character enrollment number imprinted on the address sheet of this report near your name. From the options on the follow-up page, select the New Enrollment-Create screen. Once there, enter your e-mail address and a personal, four-digit PIN. Hit the Submit button. Confirm the information you entered is correct, then hit Submit again. [picture of InvestorDelivery.com website] If you receive statements directly from Nuveen, go to WWW.NUVEEN.COM. Select the Access Your Account tab, then select E-Report Enrollment. Finally, click on the Enrollment Page. Once there, you'll need to provide your social security number and e-mail address. Click on Enroll. [picture of nuveen.com website] After registering, you should receive a confirming e-mail within 24 hours. If not, repeat these steps to ensure all information is accurate. You can use this same process if you need to change your registration information or want to cancel Internet viewing. The e-mail address you provide is strictly confidential and will only be used to notify you of shareholder information. - -------------------------------------------------------------------------------- The information in this newsletter should not be construed as specific tax or investment advice. Contact your advisor for information about your particular situation. - -------------------------------------------------------------------------------- ETFCONNECT: THE SOURCE FOR ALLEXCHANGE-TRADED FUNDS Last fall, Nuveen launched ETFConnect, the industry's first website featuring all-encompassing information on exchanged-traded funds. Whatever you're looking for in the world of Index ETFs or Closed-End Exchange-Traded Funds - prices, NAVs, dividend information, performance histories, new developments - this is the place. Highlights include Quick Facts sheets for more than 500 funds, a multi-fund search capability, website links, a list of fund sponsors, tools for portfolio tracking, and a continually updated education center. Check out WWW.ETFCONNECT.COM. [picture of etfconnect.com website] The Nuveen Investor Vol 02.1 logo: Nuveen Investments Nuveen Municipal Value Fund, Inc. (NUV) Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.2% $ 2,105 Alabama Housing Finance Authority, Single Family Mortgage Revenue 4/08 at 102.00 Aaa $2,077,614 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 101.00 Baa2 5,202,650 Alabama, Solid Waste Disposal Revenue Bonds (Champion International Paper Corporation), Series 1999A, 6.700%, 11/01/29 (Alternative Minimum Tax) 4,000 The Medical Clinic Board of the City of Jasper, Alabama, Hospital 7/02 at 102.00 Baa1 4,047,080 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 101.00 AAA 12,001,440 Warrants, Series 1999-A, 5.375%, 2/01/36 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.4% 4,900 Arizona Health Facilities Authority, Hospital Revenue Bonds 11/09 at 100.00 A3 4,992,561 (Phoenix Children's Hospital), Series 1999A, 6.250%, 11/15/29 16,000 Arizona Health Facilities Authority, Revenue Bonds (Catholic 7/10 at 101.00 BBB 16,570,240 Healthcare West), 1999 Series A, 6.625%, 7/01/20 4,975 Yuma Regional Medical Center on behalf of Hospital District 8/02 at 101.50 N/R*** 5,129,573 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% 1,400 City of Conway, Arkansas, Sales and Use Tax Capital Improvement 12/06 at 101.00 AAA 1,435,280 Bonds, Series 1997A, 5.350%, 12/01/17 2,750 Jefferson County, Arkansas, Pollution Control Revenue Refunding 12/02 at 102.00 BBB- 2,641,540 Bonds (Entergy Arkansas, Inc. Project), Series 1997, 5.600%, 10/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 7.1% 7,310 California Educational Facilities Authority, Revenue Bonds 10/09 at 39.19 Aaa 2,124,140 Series 2000 (Loyola Marymount University), 0.000%, 10/01/24 (Pre-refunded to 10/01/09) 9,000 State of California Department of Water Resources, Water System 6/03 at 101.50 AA 9,217,260 Revenue Bonds (Central Valley Project), Series L, 5.750%, 12/01/19 14,500 State of California Department of Water Resources, Water System 12/03 at 101.00 AA 13,592,300 Revenue Bonds (Central Valley Project), Series M, 4.750%, 12/01/24 17,155 State Public Works Board of the State of California, Lease Revenue 6/03 at 102.00 Aa2 17,340,446 Refunding Bonds (The Regents of the University of California), 1993 Series A (Various University of California Projects), 5.500%, 6/01/21 15,500 California Statewide Communities Development Authority, 4/09 at 101.00 BBB 14,990,050 Certificates of Participation (The Internext Group), 5.375%, 4/01/17 6,530 California Statewide Communities Development Authority, 7/03 at 102.00 AA- 6,684,630 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 102.00 N/R 2,921,160 School District, Ladera, California, Special Tax Bonds, Series 1999, 5.750%, 9/01/29 5,615 Central Joint Powers Health Financing Authority, Certificates 2/03 at 100.00 Baa1 5,092,187 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 10,230,600 2,500 6.000%, 1/01/34 (Pre-refunded to 1/01/07) 1/07 at 100.00 AAA 2,827,300 Nuveen Municipal Value Fund, Inc. (NUV) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) 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 102.00 AAA $7,539,300 California, Electric Plant Refunding Revenue Bonds (Second Issue of 1993), 5.400%, 11/15/31 4,000 Regional Airports Improvement Corporation, California, Los Angeles 12/12 at 102.00 BB 3,912,480 International Airport Facilities Sublease Revenue Bonds (American Airlines, Inc. Terminal 4 Project), Series 2002C, 7.500%, 12/01/24 (Alternative Minimum Tax) 30,470 Los Angeles County Public Works Financing Authority, California, 12/03 at 102.00 AAA 30,955,387 Lease 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 101.00 Baa3 7,541,484 (The Burnham Institute), 6.250%, 9/01/29 2,665 Yuba County Water Agency, California, Yuba River Development 9/02 at 100.00 Ba3 2,482,314 Revenue Bonds, Series A, 4.000%, 3/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 4.1% 1,300 Colorado Educational and Cultural Facilities Authority, Boulder 8/11 at 100.00 Ba2 1,303,198 County, Colorado, Charter School Revenue Bonds (Peak to Peak Charter School Project created by Boulder Valley School District No. RE-2), 7.625%, 8/15/31 Colorado Health Facilities Authority, Revenue Bonds, Series 1994 (Sisters of Charity Health Care Systems, Inc.): 9,590 5.250%, 5/15/14 (Pre-refunded to 5/15/04) 5/04 at 102.00 AA-*** 10,292,947 2,925 5.250%, 5/15/14 5/04 at 102.00 AA- 2,956,181 500 Colorado Health Facilities Authority, Revenue Bonds (Vail Valley 1/12 at 100.00 BBB 494,145 Medical Center Project), Series 2001, 5.750%, 1/15/22 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 102.00 A 3,825,618 2,125 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02)11/02 at 102.00 Aaa 2,227,723 8,290 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102.00 A 8,623,175 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C: 655 6.750%, 11/15/13 (Alternative Minimum Tax) (Pre-refunded to 11/15/02)11/02 at 102.00 Aaa 684,947 5,045 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102.00 A 5,234,288 7,515 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02)11/02 at 102.00 Aaa 7,858,586 29,870 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102.00 A 30,990,722 5,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 102.00 AAA 5,280,000 Series 2000A, 5.750%, 9/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.3% 6,095 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102.00 AAA 6,321,125 Program Bonds, 1996 Series D (Subseries D-2), 6.200%, 11/15/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.3% 27,725 Washington Convention Center Authority, District of Columbia, 10/08 at 100.00 AAA 25,098,334 Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 4.750%, 10/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 2.5% 10,690 City of Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/11 at 100.00 AAA 10,335,520 Bonds, Series 2001, 5.000%, 10/01/30 5,000 Orange County Health Facilities Authority, Florida, Hospital Revenue 10/09 at 101.00 A2 5,098,750 Bonds (Orlando Regional Healthcare System), Series 1999E, 6.000%, 10/01/26 Orlando Utilities Commission, Florida, Water and Electric Subordinated Revenue Bonds, Series 1993B: 7,400 5.600%, 10/06/17 10/03 at 102.00 Aa2 7,545,188 9,600 5.250%, 10/01/23 10/03 at 101.00 Aa2 9,602,784 1,750 Orlando Utilities Commission, Florida, Water and Electric Revenue 10/02 at 101.00 Aa1 1,753,710 Bonds, Series 1993, 5.125%, 10/01/19 5,570 Orlando Utilities Commission, Florida, Water and Electric Subordinated 10/02 at 100.00 Aa2 5,577,352 Revenue Bonds, Series 1992A, 5.500%, 10/01/27 8,000 Orlando Utilities Commission, Florida, Water and Electric Subordinated 10/03 at 102.00 Aa2 8,020,720 Revenue Refunding Bonds, Series 1993A, 5.250%, 10/01/23 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.0% $ 4,500 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/12 at 100.00 AAA $4,317,570 Series 2001A, 5.000%, 11/01/33 9,790 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/09 at 101.00 AAA 9,340,639 Series 1999A, 5.000%, 11/01/38 Coffee County Hospital Authority, Georgia, Revenue Anticipation Certificates (Coffee Regional Medical Center, Inc. Project), Series 1997A: 2,100 6.250%, 12/01/06 No Opt. Call N/R 2,140,992 21,100 6.750%, 12/01/26 12/06 at 102.00 N/R 20,652,891 2,250 Hospital Authority of the City of Royston, Georgia, Revenue 7/09 at 102.00 N/R 2,122,515 Anticipation Certificates (Ty Cobb Healthcare System, Inc. Project), Series 1999, 6.500%, 7/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 12.4% 2,060 Aurora, Illinois, Golf Course Revenue Bonds, Series 2000, 1/10 at 100.00 A+ 2,203,912 6.375%, 1/01/20 2,000 Chicago School Reform Board of Trustees of the Board of Education 12/07 at 102.00 AAA 2,004,240 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 4,119,000 47,500 0.000%, 12/01/28 No Opt. Call AAA 10,241,475 5,000 City of Chicago, Illinois, Adjustable-Rate Gas Supply Revenue 9/02 at 102.00 AA- 5,118,600 Bonds, 1985 Series A (The Peoples Gas Light and Coke Company Project), 6.875%, 3/01/15 5,000 Chicago Housing Authority, Illinois, Capital Program Revenue 7/12 at 100.00 AA*** 5,072,000 Bonds, Series 2001, 5.375%, 7/01/18 1,125 Metropolitan Water Reclamation District of Greater Chicago, No Opt. Call Aaa 1,346,861 Illinois, General Obligation Capital Improvement Bonds, Series 1991, 7.000%, 1/01/11 3,575 City of Chicago, Illinois, Chicago O'Hare International Airport 1/11 at 101.00 AAA 3,388,957 Second Lien Passenger Facility Charge Revenue Bonds, Series 2001C, 5.100%, 1/01/26 (Alternative Minimum Tax) 4,930 Illinois Development Finance Authority, Industrial Development 6/02 at 102.00 N/R 4,972,398 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- 2,998,440 Revenue Refunding Bonds, Series 1994 (Commonwealth Edison Company Project), 5.850%, 1/15/14 28,030 Illinois Development Finance Authority, Elgin School No Opt. Call Aaa 11,497,626 District No. U46, Kane, Cook, and DuPage Counties, Local Government Program Bonds, Series 2002, 0.000%, 1/01/19 Illinois Development Finance Authority, Revenue Bonds (The Presbyterian Home Lake Forest Place Project), Series 1996 B: 6,495 6.400%, 9/01/31 (Pre-refunded to 9/01/06) 9/06 at 102.00 AAA 7,453,987 990 6.400%, 9/01/31 9/06 at 102.00 AAA 1,051,390 1,800 Illinois Development Finance Authority, Local Government Program No Opt. Call Aaa 731,232 Revenue Bonds, Series 2000 (Rockford School District Number 205 Project), 0.000%, 2/01/19 8,000 Illinois Development Finance Authority, Revenue Bonds (Illinois 9/11 at 100.00 AAA 7,600,640 Wesleyan University), Series 2001, 5.125%, 9/01/35 14,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 10/03 at 102.00 A-*** 14,840,980 Series 1993 (Illinois Masonic Medical Center), 5.500%, 10/01/19 (Pre-refunded to 10/01/03) 7,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1993 11/03 at 102.00 AAA 7,006,510 (Swedish American Hospital), 5.375%, 11/15/23 18,015 Illinois Health Facilities Authority, Revenue Bonds, Series 1993 11/03 at 102.00 AAA 18,028,872 (Rush-Presbyterian-St. Luke's Medical Center Obligated Group), 5.250%, 11/15/20 4,350 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 No Opt. Call A*** 5,249,102 (South Suburban Hospital), 7.000%, 2/15/18 8,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1997 8/07 at 101.00 AAA 7,818,880 (Sherman Health Systems), 5.250%, 8/01/22 15,000 Illinois Health Facilities Authority, Revenue Bonds, Series 2000 5/10 at 101.00 A3 15,438,000 (Condell Medical Center), 6.500%, 5/15/30 15,000 Illinois Health Facilities Authority, Revenue Bonds, Series 2001B 2/11 at 101.00 AAA 14,667,600 (Edward Hospital Obligation Group), 5.250%, 2/15/34 Nuveen Municipal Value Fund, Inc. (NUV) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 48,805 State of Illinois, Build Illinois Bonds (Sales Tax Revenue Refunding), 6/02 at 101.00 AAA $49,283,289 Series Q, 5.500%, 6/15/20 Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project Bonds, Series 1992A: 18,955 0.000%, 6/15/17 No Opt. Call AAA 8,504,350 12,300 0.000%, 6/15/18 No Opt. Call AAA 5,168,337 Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project Bonds, Series 1994B: 7,250 0.000%, 6/15/18 No Opt. Call AAA 3,046,378 3,385 0.000%, 6/15/21 No Opt. Call AAA 1,170,567 9,900 0.000%, 6/15/29 No Opt. Call AAA 2,110,482 16,550 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA 5,555,835 Place Expansion Project Refunding Bonds, Series 1996A, 0.000%, 12/15/21 11,650 Regional Transportation Authority, Cook, DuPage, Kane, Lake, 6/04 at 102.00 AAA 12,767,352 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1994A, 6.250%, 6/01/24 (Pre-refunded to 6/01/04) 1,505 Tri-City Regional Port District, Illinois, Port and Terminal Facilities No Opt. Call N/R 1,541,165 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 992,771 Appreciation School Bonds, Series 1999, 0.000%, 1/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.1% 10,000 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/13 at 101.00 AAA 10,324,900 Series 2001A, 5.375%, 2/01/19 10,000 Indiana Health Facility Financing Authority, Hospital Revenue 11/07 at 102.00 AAA 9,961,500 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 102.00 AA 17,548,533 Bonds, Series 1996A (Clarian Health Partners, Inc.), 6.000%, 2/15/21 4,840 Indianapolis Airport Authority, Indiana, Special Facilities Revenue 7/04 at 102.00 BBB 5,095,165 Bonds, Series 1994 (Federal Express Corporation Project), 7.100%, 1/15/17 (Alternative Minimum Tax) The Indianapolis Local Public Improvement Bond Bank, Indiana, Series 1999E: 12,500 0.000%, 2/01/21 No Opt. Call AAA 4,437,125 10,000 0.000%, 2/01/27 No Opt. Call AAA 2,464,000 9,155 South Bend, Indiana, Multifamily Revenue Refunding Bonds 5/02 at 102.00 N/R 8,629,411 (Pointe at St. Joseph Project), Series A, 6.200%, 12/15/18 500 South Bend, Indiana, Multifamily Revenue Refunding Bonds 5/02 at 102.00 N/R 481,240 (Pointe at St. Joseph Project), Series B, 6.450%, 12/15/18 (Alternative Minimum Tax) 3,169 South Bend, Indiana, Multifamily Revenue Refunding Bonds 12/03 at 100.00 N/R 2,019,932 (Pointe at St. Joseph Project), Series C, 3.850%, 12/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.7% 8,195 Iowa Housing Finance Authority, Single Family Housing Bonds, No Opt. Call AAA 1,663,503 1984 Issue A, 0.000%, 9/01/16 35,500 Tobacco Settlement Authority, Iowa, Tobacco Settlement 6/11 at 101.00 A1 30,810,095 Asset-Backed Revenue Bonds, Series 2001B, 5.600%, 6/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.4% 6,650 Newton Healthcare Corporation, City of Newton, Kansas, 11/04 at 102.00 N/R*** 7,586,586 Hospital Revenue Bonds, Series 1994A, 7.750%, 11/15/24 (Pre-refunded to 11/15/04) - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.1% 12,500 County of Carroll, Kentucky, Collateralized Pollution Control 9/02 at 102.00 A1 12,972,375 Revenue Bonds (Kentucky Utilities Company Project), 1992 Series A, 7.450%, 9/15/16 8,135 Greater Kentucky Housing Assistance Corporation, Mortgage 1/03 at 100.00 AAA 8,169,330 Revenue Refunding Bonds, Series 1997A (FHA-Insured Mortgage Loans - Section 8 Assisted Projects), 6.100%, 1/01/24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 1.9% $ 17,330 Louisiana Public Facilities Authority, Hospital Revenue Refunding 5/02 at 100.00 AAA $20,721,308 Bonds (Southern Baptist Hospitals, Inc. Project), Series 1986, 8.000%, 5/15/12 18,880 Tobacco Settlement Financing Corporation, Louisiana, Asset-Backed 5/11 at 101.00 A1 17,028,250 Bonds, Series 2001B, 5.875%, 5/15/39 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 1.4% 14,365 Maine State Housing Authority, Mortgage Purchase Bonds, 2/04 at 102.00 AA+ 14,732,313 1994 Series A, 5.550%, 11/15/14 12,395 Maine State Housing Authority, Mortgage Purchase Bonds, 5/05 at 102.00 AA+ 12,886,710 1995 Series A-2, 6.650%, 11/15/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.8% 10,900 Community Development Administration of Maryland, Residential 3/07 at 101.50 Aa2 11,166,723 Revenue Bonds, Department of Housing and Community Development, Series 1997B, 5.875%, 9/01/25 (Alternative Minimum Tax) 3,500 Maryland Energy Financing Administration, Limited Obligation 9/05 at 102.00 N/R 3,614,590 Congeneration Revenue Bonds (AES Warrior Run Project), Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.7% Massachusetts Municipal Wholesale Electric Company, Power Supply System Revenue Bonds, 1987 Series A: 75 8.750%, 7/01/18 (Pre-refunded to 7/01/02) 7/02 at 100.00 Aaa 75,903 110 8.750%, 7/01/18 (Pre-refunded to 1/01/03) 1/03 at 100.00 Aaa 115,092 100 8.750%, 7/01/18 (Pre-refunded to 7/01/03) 7/03 at 100.00 Aaa 107,664 215 8.750%, 7/01/18 (Pre-refunded to 1/01/04) 1/04 at 100.00 Aaa 236,881 220 8.750%, 7/01/18 (Pre-refunded to 7/01/04) 7/04 at 100.00 Aaa 248,873 105 8.750%, 7/01/18 (Pre-refunded to 7/01/05) 7/05 at 100.00 Aaa 120,677 110 8.750%, 7/01/18 (Pre-refunded to 7/01/05) 7/05 at 100.00 Aaa 129,327 16,400 Massachusetts Turnpike Authority, Metropolitan Highway System 1/07 at 102.00 AAA 15,363,356 Revenue Bonds (Senior), 1997 Series A, 5.000%, 1/01/37 8,000 Massachusetts Turnpike Authority, Metropolitan Highway System 1/07 at 102.00 AAA 7,650,160 Revenue Bonds (Subordinated), 1997 Series B, 5.125%, 1/01/37 5,000 Massachusetts Turnpike Authority, Metropolitan Highway System 1/09 at 101.00 AAA 4,677,950 Revenue Bonds (Subordinated), 1999 Series A, 5.000%, 1/01/39 36,580 Massachusetts Water Resources Authority, General Revenue 11/02 at 102.00 AA 37,720,930 Refunding Bonds, 1992 Series B, 5.500%, 11/01/15 6,000 Massachusetts Water Pollution Abatement Trust, Pool Program 8/10 at 101.00 AAA 6,150,300 Bonds, Series 6, 5.500%, 8/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 5.7% 6,000 The Economic Development Corporation of the City of Dearborn, 8/04 at 102.00 AAA 6,005,220 Michigan, Hospital Revenue Refunding Bonds (Oakwood Obligated Group), Series 1994A, 5.250%, 8/15/21 9,650 City of Detroit Local Development Finance Authority, Michigan, 5/09 at 101.00 BB- 7,944,073 Tax Increment Bonds, Series 1998A, 5.500%, 5/01/21 1,400 City of Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 101.00 AAA 1,437,954 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 102.00 AAA 2,775,033 1,300 6.250%, 7/01/12 7/02 at 102.00 AAA 1,335,126 3,000 Michigan Municipal Bond Authority, Public School Academy 10/09 at 102.00 Ba1 3,111,480 Bonds (Detroit Academy of Arts and Sciences), Series 2001, 7.900%, 10/01/21 12,925 Michigan State Hospital Finance Authority, Revenue and 8/03 at 102.00 BBB- 12,606,916 Refunding Bonds (The Detroit Medical Center Obligated Group), Series 1993A, 6.500%, 8/15/18 35,305 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BBB- 28,062,532 Bonds (The Detroit Medical Center Obligated Group), Series 1998A, 5.250%, 8/15/28 Nuveen Municipal Value Fund, Inc. (NUV) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN (continued) $ 4,320 Michigan State Housing Development Authority, Rental Housing 4/03 at 102.00 AAA $4,397,242 Revenue Bonds, 1993 Series A, 5.875%, 10/01/17 15,750 Michigan State Housing Development Authority, Rental Housing 6/05 at 102.00 AAA 16,514,663 Revenue Bonds, 1995 Series B, 6.150%, 10/01/15 25,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/05 at 102.00 AAA 27,339,000 Bonds (Detroit Edison Company Pollution Control Bonds Project), Collateralized Series 1995AA, 6.400%, 9/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.2% 3,575 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 3,742,811 1995 Series D, 5.900%, 8/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.7% 13,000 Mississippi Hospital Equipment and Facilities Authority, Revenue 5/03 at 102.00 AAA 13,313,950 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 101.00 BB+ 1,649,708 1,000 5.600%, 11/15/17 11/07 at 101.00 BB+ 901,880 3,075 The Industrial Development Authority of the City of 11/09 at 101.00 BB+ 3,022,510 West Plains, Missouri, Hospital Facilities Revenue Bonds (Ozark Medical Center), Series 1999, 6.750%, 11/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.1% 1,245 Consumers Public Power District, Nebraska, Nuclear Facility 7/02 at 100.00 A1 1,247,988 Revenue Bonds, 1968 Series, 5.100%, 1/01/03 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 1.1% Director of the State of Nevada, Department of Business and Industry Revenue Bonds (Las Vegas Monorail Project), 1st Tier Series 2000: 7,500 0.000%, 1/01/24 No Opt. Call AAA 2,225,925 18,800 5.375%, 1/01/40 1/10 at 100.00 AAA 18,618,392 - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 1.1% 20,785 Business Finance Authority of the State of New Hampshire, 10/03 at 102.00 A3 20,796,432 Pollution Control Refunding Revenue Bonds (The United Illuminating Company Project), 1993 Series A, 5.875%, 10/01/33 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.9% 25,625 New Jersey Economic Development Authority, Special Facility 9/09 at 101.00 BB- 22,386,513 Revenue Bonds (Continental Airlines, Inc. Project), Series 1999, 6.250%, 9/15/29 (Alternative Minimum Tax) 10,250 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 BB- 9,972,430 Revenue Bonds (Continental Airlines, Inc. Project), Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax) 5,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 5,401,450 Bonds (Trinitas Hospital Obligated Group Issue), Series 2000, 7.500%, 7/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 9.9% 5,360 Village of East Rochester Housing Authority, New York, 8/07 at 102.00 AAA 5,646,760 FHA-Insured Mortgage Revenue Bonds (St. John's Meadows Project), Series 1997A, 5.600%, 8/01/17 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A: 11,000 5.250%, 12/01/26 6/08 at 101.00 AAA 11,017,380 32,140 5.500%, 12/01/29 6/03 at 101.00 A- 32,490,326 15,500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 A- 15,566,495 Revenue Bonds, Series 2001A, 5.375%, 9/01/25 5,000 The City of New York, New York, General Obligation Bonds, 8/03 at 101.50 A 5,158,550 Fiscal 1994 Series D, 5.750%, 8/15/10 5,000 The City of New York, New York, General Obligation Bonds, 2/06 at 101.50 A 5,284,700 Fiscal 1996 Series G, 5.750%, 2/01/14 10,000 The City of New York, New York, General Obligation Bonds, 8/06 at 101.50 A 10,540,900 Fiscal 1997 Series E, 6.000%, 8/01/16 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 13,395 The City of New York, New York, General Obligation Bonds, 8/07 at 101.00 A $14,227,097 Fiscal 1998 Series D, 5.500%, 8/01/10 39,610 The City of New York, New York, General Obligation Bonds, 10/07 at 101.00 A 41,580,201 Fiscal 1997 Series G, 6.000%, 10/15/26 15,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 16,255,650 Water and 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 101.00 A 5,541,536 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 101.00 AA- 6,817,790 Services Facilities Improvement Revenue Bonds, Series 1999D, 5.250%, 2/15/29 5,000 New York State Environmental Facilities Corporation, State Clean 6/12 at 100.00 AAA 4,856,900 Water and Drinking Water Revolving Funds, Revenue and Resolution Bonds, Series 2002B (New York City Municipal Water Finance Second Authority Projects), 5.000%, 6/15/27 9,025 New York State Medical Care Facilities Finance Agency, 8/03 at 102.00 AAA 9,594,297 FHA-Insured Mortgage Revenue Bonds (St. Luke's-Roosevelt Hospital Center), 1993 Series A, 5.600%, 8/15/13 7,500 Power Authority of the State of New York, Revenue Bonds, 11/10 at 100.00 Aa2 7,383,975 Series 2000A, 5.250%, 11/15/40 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 3.4% 2,600 City of Charlotte, North Carolina, Refunding Certificates of 12/03 at 102.00 AAA 2,617,160 Participation (Convention Facility Project), Series 1993C, 5.250%, 12/01/20 12,715 North Carolina Eastern Municipal Power Agency, Power System 9/03 at 102.50 BBB 12,854,992 Revenue Bonds, Series 1985-G, 5.750%, 12/01/16 11,610 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 102.00 BBB 11,764,529 Revenue Bonds, Series 1993-D, 5.875%, 1/01/14 1,000 North Carolina Eastern Municipal Power Agency, Power System 1/07 at 102.00 AAA 1,068,180 Revenue Bonds, Refunding Series 1996A, 5.700%, 1/01/13 14,310 North Carolina Municipal Power Agency Number 1, Catawba 1/03 at 100.00 BBB+ 14,337,475 Electric Revenue Bonds, Series 1992, 5.750%, 1/01/15 13,140 North Carolina Municipal Power Agency Number 1, Catawba 7/02 at 100.00 BBB+ 13,140,788 Electric Revenue Bonds, Series 1985B, 6.000%, 1/01/20 10,000 North Carolina Municipal Power Agency Number 1, Catawba Electric 1/10 at 101.00 BBB+ 10,488,000 Revenue Bonds, Series 1999B, 6.500%, 1/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 3.3% 5,955 Pennsylvania Convention Center Authority, Refunding Revenue 9/04 at 102.00 BBB 6,214,459 Bonds, 1994 Series A, 6.750%, 9/01/19 11,175 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/03 at 102.00 AA+ 11,382,408 Revenue Bonds, Series 36, 5.450%, 10/01/14 7,670 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102.00 AA+ 7,944,126 Revenue Bonds, Series 1996-51, 6.375%, 4/01/28 (Alternative Minimum Tax) 18,850 Pennsylvania Intergovernmental Cooperation Authority, Special 6/03 at 100.00 AAA 18,416,450 Tax Revenue Refunding Bonds (City of Philadelphia Funding Program), Series of 1993A, 5.000%, 6/15/22 4,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/08 at 100.00 AA 4,059,585 Bonds (The Trustees of the University of Pennsylvania), Series 1998, 4.500%, 7/15/21 16,180 City of Philadelphia, Pennsylvania, Water and Wastewater 6/03 at 102.00 AAA 16,849,043 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 101.00 AAA 10,374,600 Bonds, 2000 Series A, 5.500%, 10/01/40 5,500 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa2 5,745,520 Environmental Control Facilities Financing Authority, Cogeneration Facility Revenue Bonds, 2000 Series A, 6.625%, 6/01/26 (Alternative Minimum Tax) Nuveen Municipal Value Fund, Inc. (NUV) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 0.3% $ 6,250 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA $6,165,000 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 7/02 at 100.00 BBB- 11,162,450 Revenue Bonds, 1986 Refunding Series, 5.000%, 1/01/25 8,000 South Carolina Jobs-Economic Development Authority, 12/10 at 102.00 BBB 8,664,000 Hospital Improvement Revenue Bonds (Palmetto Health Alliance), Series 2000A, 7.375%, 12/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.1% 2,125 Municipal Energy Acquisition Corporation, Tennessee, No Opt. Call AAA 2,151,648 Gas Revenue Bonds, Series 1999, 4.125%, 3/01/08 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 5.1% 13,040 Alliance Airport Authority, Inc., Texas, Special Facilities 6/02 at 101.00 BB 12,153,802 Revenue Bonds, Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax) 24,265 City of Austin, Texas, Combined Utility Systems Revenue No Opt. Call AAA 34,867,106 Refunding Bonds, Series 1992A, 12.500%, 11/15/07 1,955 Corpus Christi Housing Finance Corporation, Texas, Single Family 7/02 at 102.00 AAA 2,020,493 Mortgage Senior Revenue Refunding Bonds, Series 1991A, 7.700%, 7/01/11 2,700 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AAA 2,650,968 Revenue Bonds, Series 2001G, 5.250%, 11/15/30 10,045 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 10,636,751 Bonds, Series 2000A, 5.875%, 7/01/16 (Alternative Minimum Tax) Irving Independent School District, Texas, Unlimited Tax School Building Bonds, Series 1997: 5,685 0.000%, 2/15/10 No Opt. Call AAA 4,010,085 3,470 0.000%, 2/15/11 No Opt. Call AAA 2,312,443 22,060 Leander Independent School District, Williamson and Travis 8/09 at 31.45 AAA 4,676,499 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, 10/02 at 100.00 AAA 14,806,058 Collateralized Revenue Refunding Bonds (Houston Lighting and Power Company Project), Series 1995, 5.800%, 10/15/15 5,000 Industrial Development Corporation of Port of Corpus Christi, 4/08 at 102.00 BBB 4,882,450 Texas, Revenue Refunding Bonds (Valero Refining and Marketing Company Project), 5.400%, 4/01/18 6,050 Weslaco Health Facilities Development Corporation, Texas, 6/04 at 102.00 AAA 6,049,698 Hospital Revenue Bonds (Knapp Medical Center Project), Series 1994, 5.375%, 6/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 3.5% 12,000 Intermountain Power Agency, Utah, Power Revenue Refunding 7/06 at 102.00 A+ 11,646,360 Bonds, 1996 Series D, 5.000%, 7/01/21 5,000 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 5,274,050 Refunding Bonds, 1997 Series B, 5.750%, 7/01/19 Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds, 1993 Series A: 16,080 5.500%, 7/01/20 7/03 at 102.00 A+*** 16,929,185 21,045 5.500%, 7/01/20 7/03 at 102.00 A+ 21,173,795 8,280 5.000%, 7/01/23 7/03 at 100.00 A+ 7,970,659 4,780 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 101.50 AAA 4,529,671 1998 Series G, 5.200%, 7/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.2% 3,245 Virginia Housing Development Authority, Multifamily Housing 1/08 at 102.00 AA+ 3,318,142 Bonds, Series 1997E, 5.600%, 11/01/17 (Alternative Minimum Tax) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 10.3% $ 12,500 Energy Northwest, Washington, Columbia Generation Station 7/12 at 100.00 AAA $13,689,625 Electric Revenue Refunding Bonds, Series 2002B, 6.000%, 7/01/18 9,450 Washington Public Power Supply System, Nuclear Project 7/03 at 102.00 AAA 9,788,972 No. 1 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 102.00 Aa1 27,671,220 2,970 5.375%, 7/01/15 7/03 at 102.00 Aa1 3,013,778 Washington Public Power Supply System, Nuclear Project No. 2 Refunding Revenue Bonds, Series 1993A: 8,495 5.750%, 7/01/12 (Pre-refunded to 7/01/03) 7/03 at 102.00 Aa1*** 9,020,416 2,895 5.750%, 7/01/12 7/03 at 102.00 Aa1 2,990,043 17,700 Washington Public Power Supply System, Nuclear Project No. 2 7/04 at 102.00 Aa1 18,424,992 Refunding Revenue Bonds, Series 1994A, 5.375%, 7/01/10 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993C: 81,000 5.400%, 7/01/12 7/03 at 102.00 Aa1 83,013,660 15,850 5.375%, 7/01/15 7/03 at 102.00 Aa1 16,083,629 8,200 Washington Public Power Supply System, Nuclear Project No. 3 No Opt. Call Aa1 4,448,008 Refunding Revenue Bonds, Series 1989B, 0.000%, 7/01/14 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993B: 5,895 5.625%, 7/01/12 7/03 at 102.00 Aa1 6,080,221 9,000 5.600%, 7/01/17 7/03 at 102.00 AAA 9,178,740 - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.4% 6,840 West Virginia Housing Development Fund, Housing Finance 11/06 at 102.00 AAA 7,094,380 Bonds, Series 1997-A, 6.050%, 5/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.4% 20,385 The Wisconsin Public Power Incorporated System, Power Supply 7/03 at 102.00 AAA 20,427,600 System Revenue Bonds, Series 1993A, 5.250%, 7/01/21 8,370 Wisconsin Housing and Economic Development Authority, 9/08 at 101.50 AA 8,267,970 Home Ownership Revenue Bonds, 1998 Series B, 5.600%, 3/01/28 (Alternative Minimum Tax) 17,020 Wisconsin Health and Educational Facilities Authority, 8/03 at 102.00 AAA 17,189,173 Revenue 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 102.00 AAA 1,792,560 Bonds (Sisters of the Sorrowful Mother - Ministry Corporation), Series 1993C, 5.400%, 8/15/13 - ------------------------------------------------------------------------------------------------------------------------------------ $ 2,085,149 Total Investments (cost $1,823,205,453) - 98.4% 1,917,405,966 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.6% 30,244,925 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $1,947,650,891 ==================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: 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. See accompanying notes to financial statements.
Nuveen Municipal Income Fund, Inc. (NMI) Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 6.9% $ 5,530 Adelanto School District, San Bernardino County, California, No Opt. Call AAA $1,803,941 General Obligation Bonds, 1997 Series A, 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 696,440 2,070 0.000%, 8/01/22 No Opt. Call AAA 677,035 2,120 0.000%, 8/01/23 No Opt. Call AAA 652,112 3,000 California Pollution Control Financing Authority, Solid Waste 7/07 at 102.00 N/R 339,300 Disposal Revenue Bonds (CanFibre of Riverside Project), Series 1997A, 9.000%, 7/01/19 (Alternative Minimum Tax)# 1,150 Foothill/Eastern Transportation Corridor Agency, California, 1/07 at 100.00 AAA 1,300,558 Toll Road Revenue Bonds, Series 1995A, 6.000%, 1/01/34 (Pre-refunded to 1/01/07) 500 Regional Airports Improvement Corporation, California, 12/12 at 102.00 BB 489,060 Los Angeles International Airport Facilities Sublease Revenue Bonds (American Airlines, Inc. Terminal 4 Project),Series 2002C, 7.500%, 12/01/24 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.2% 500 Colorado Educational and Cultural Facilities Authority, Boulder 8/11 at 100.00 Ba2 500,410 County, Colorado, Charter School Revenue Bonds (Peak to Peak Charter School Project created by Boulder Valley School District No. RE-2), 7.500%, 8/15/21 1,000 Colorado Educational and Cultural Facilities Authority, Charter 6/11 at 100.00 Ba1 986,940 School Revenue Bonds, Series 2001 (Frontier Academy Project in Weld County School District No. 6), 7.375%, 6/01/31 920 Colorado Educational and Cultural Facilities Authority, Charter 7/12 at 100.00 BBB 898,343 School Revenue Bonds (DCS Montessori Project in Douglas County School District RE-1), Series 2002A, 6.000%, 7/15/22 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992B: 410 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102.00 Aaa 429,819 1,590 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102.00 A 1,653,902 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 5.4% 1,480 Capitol Region Education Council, Connecticut, Revenue Bonds, 10/05 at 102.00 BBB 1,564,434 6.750%, 10/15/15 2,000 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102.00 BBB- 2,045,780 Revenue Bonds (University of New Haven Issue), Series D, 6.700%, 7/01/26 990 Housing Authority of the City of Willimantic, Connecticut, 10/05 at 105.00 AAA 1,083,605 Multifamily Housing Revenue Bonds, Series 1995A (GNMA Collateralized Mortgage Loan - Village Heights Apartments Project), 8.000%, 10/20/30 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 5.1% 1,670 Dade County Industrial Development Authority, Florida, Industrial 6/05 at 102.00 N/R 1,707,191 Development Revenue Bonds (Miami Cerebral Palsy Residential Services, Inc. Project), Series 1995, 8.000%, 6/01/22 2,000 Martin County Industrial Development Authority, Florida, 12/04 at 102.00 BBB- 2,065,100 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, Industrial 12/04 at 102.00 BBB- 624,570 Development Revenue Refunding Bonds (Indiantown Cogeneration Project), Series B, 8.050%, 12/15/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 9.5% 4,160 City of Chicago, Illinois, Tax Increment Allocation Bonds 1/09 at 100.00 N/R 4,083,248 (Irving/Cicero Redevelopment Project), Series 1998, 7.000%, 1/01/14 1,300 Illinois Health Facilities Authority, McHenry, Illinois, Revenue 9/03 at 102.00 A-*** 1,390,350 Bonds, Series 1993 (Northern Illinois Medical Center Project), 6.000%, 9/01/19 (Pre-refunded to 9/01/03) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 90 Illinois Housing Development Authority, Homeowner Mortgage 5/02 at 100.00 AA $ 90,192 Revenue Bonds, 1994 Series A-2, 6.700%, 8/01/25 (Alternative Minimum Tax) (Pre-refunded to 5/15/02) 1,930 Joliet Regional Port District Airport Facilities, Illinois, Revenue 7/07 at 103.00 N/R 1,770,273 Bonds (Lewis University Airport), Series 1997A, 7.250%, 7/01/18 (Alternative Minimum Tax) 2,000 Robbins, Illinois, Resources Recovery Revenue Bonds, No Opt. Call N/R 915,000 Series 1999C (Restructuring Project guaranteed by Foster Wheeler), 7.250%, 10/15/24 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 9.8% 2,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/12 at 101.00 Baa1 1,961,120 Bonds, Series 2002 (Riverview Hospital Project), 6.125%, 8/01/31 7,000 Whitley County, Indiana, Solid Waste and Sewage Disposal 11/10 at 102.00 N/R 6,539,890 Revenue Bonds (Steel Dynamics, Inc. Project), Series 1998, 7.250%, 11/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 3.0% 3,000 Tobacco Settlement Authority, Iowa, Tobacco Settlement Asset- 6/11 at 101.00 A1 2,561,340 Backed Revenue Bonds, Series 2001B, 5.300%, 6/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 3.3% Louisiana Public Facilities Authority, Extended Care Facilities Revenue Bonds (Comm-Care Corporation Project), Series 1994: 285 11.000%, 2/01/04 No Opt. Call BBB 299,649 2,000 11.000%, 2/01/14 No Opt. Call BBB 2,518,800 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 3.6% 2,000 Anne Arundel County, Maryland, Multifamily Housing Revenue No Opt. Call BBB- 2,065,080 Bonds (Twin Coves Apartments Project), Series 1994, 7.450%, 12/01/24 (Alternative Minimum Tax) (Mandatory put 12/01/03) 1,000 Maryland Energy Financing Administration, Limited Obligation 9/05 at 102.00 N/R 1,032,740 Congeneration Revenue Bonds (AES Warrior Run Project), Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.1% 500 Massachusetts Development Finance Agency, Resource Recovery 12/09 at 102.00 BBB 458,980 Revenue Bonds (Ogden Haverhill), Series 1999A, 6.700%, 12/01/14 (Alternative Minimum Tax) 460 Massachusetts Health and Educational Facilities Authority, 7/02 at 100.00 AAA 468,119 Revenue Bonds (Beverly Hospital Issue), Series D, 7.300%, 7/01/13 1,000 Massachusetts Industrial Finance Agency, Resource Recovery No Opt. Call BBB 917,060 Revenue Refunding Bonds (Ogden Haverhill Project), Series 1992A Remarketing, 4.850%, 12/01/05 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 3.0% 2,150 Michigan State Hospital Finance Authority, Hospital Revenue 1/06 at 102.00 Baa3 2,154,257 Bonds (Sinai Hospital), Refunding Series 1995, 6.625%, 1/01/16 500 Wayne County, Michigan, Special Airport Facilities Revenue 12/05 at 102.00 N/R 460,565 Bonds (Northwest Airlines, Inc.), Refunding Series 1995, 6.750%, 12/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.0% 1,000 The Housing and Redevelopment Authority of the City of 11/03 at 102.00 Ba2 841,610 St. Paul, Minnesota, Hospital Facility Revenue Bonds (HealthEast Project), Refunding Series 1993A, 6.625%, 11/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 1.7% 1,500 Montana State Board of Investments, Exempt Facility Revenue 7/10 at 101.00 Ba3 1,500,465 Bonds, Series 2000 (Stillwater Mining Company Project), 8.000%, 7/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.8% 700 New Hampshire Higher Educational and Health Facilities 1/07 at 102.00 BBB- 666,176 Authority, Revenue Bonds, Series 1997 (New Hampshire College), 6.375%, 1/01/27 Nuveen Municipal Income Fund, Inc. (NMI) (continued) Portfolio of INVESTMENTS April 30, 2002 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 12.0% $ 1,475 County of Cattaraugus Industrial Development Agency, New York, No Opt. Call N/R $1,393,565 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, Solid Waste 12/10 at 103.00 N/R 1,725,000 Disposal Facility Revenue Bonds (1998 CanFibre of Lackawanna Project), 8.875%, 12/01/13 (Alternative Minimum Tax)## 2,500 New York State Medical Care Facilities Finance Agency, Brookdale 2/05 at 102.00 AAA 2,833,200 Hospital Medical Center Secured Hospital Revenue Bonds, 1995 Series A, 6.800%, 8/15/12 (Pre-refunded to 2/15/05) 130 UFA Development Corporation, Utica, New York, FHA-Insured 1/07 at 102.00 Aa2 130,551 Mortgage Revenue Bonds, Series 1997A (Loretto-Utica Project), 6.125%, 7/01/35 4,190 Yates County Industrial Development Agency, New York, Civic 2/11 at 101.00 AAA 4,423,928 Facility Revenue Bonds, Series 2000A (Soldiers and Sailors Memorial Hospital - FHA-Insured Mortgage), 6.000%, 2/01/41 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 3.1% 2,700 Ohio Water Development Authority, Solid Waste Disposal Revenue 9/09 at 102.00 N/R 2,661,120 Bonds (Bay Shore Power Project), Convertible Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 1.1% 965 State of Oregon Housing and Community Services Department, 7/07 at 101.50 Aa2 972,266 Mortgage Revenue Bonds (Single-Family Mortgage Program), 1997 Series H, 5.650%, 7/01/28 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 7.4% 1,800 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 B+ 1,932,876 Health System Revenue Bonds, Series 2000B (West Penn Allegheny Health System), 9.250%, 11/15/30 1,720 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,834,070 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 102.00 BBB 1,043,570 Bonds, 1994 Series A, 6.750%, 9/01/19 1,500 Pennsylvania Economic Development Financing Authority, 12/04 at 102.00 BBB- 1,567,305 Resource Recovery Revenue Bonds (Colver Project), Series 1994D, 7.150%, 12/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.2% 1,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 A1 1,002,580 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 2.3% 1,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa2 1,000,350 Tennessee, Hospital Facilities Revenue Bonds (Baptist Health System of East Tennessee), Series 2002, 6.375%, 4/15/22 1,000 The Health, Educational and Housing Facility Board of the 9/12 at 100.00 BBB+ 1,007,740 County of Shelby, Tennessee, Hospital Revenue Bonds (Methodist Healthcare), Series 2002, 6.500%, 9/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 8.4% 1,055 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue 6/02 at 101.00 BB 983,302 Bonds, Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax) 2,000 Gulf Coast Waste Disposal Authority, Texas, Sewage and 4/12 at 100.00 A+ 2,019,920 Solid Waste Disposal Revenue Bonds (Anheuser Busch Company Project), Series 2002, 5.900%, 4/01/36 (Alternative Minimum Tax) 540 Hidalgo County Housing Finance Corporation, Texas, Single 4/04 at 102.00 Aaa 555,169 Family Mortgage Revenue Bonds (GNMA and FNMA Collateralized), Series 1994A, 7.000%, 10/01/27 (Alternative Minimum Tax) 1,000 Laredo Independent School District, Webb County, Texas, 8/09 at 100.00 AAA 996,660 Unlimited Tax School Building Bonds, Series 1999, 5.250%, 8/01/24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 2,000 Weslaco Health Facilities Development Authority, Texas, 6/12 at 100.00 BBB+ $2,001,340 Hospital Revenue Bonds (Knapp Medical Center Project), Series 2002, 6.250%, 6/01/25 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 51.84 AAA 252,920 1,000 0.000%, 8/15/26 8/13 at 49.08 AAA 237,300 1,000 0.000%, 8/15/27 8/13 at 46.47 AAA 223,490 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 1.2% 1,000 Utah Housing Corporation, Single Family Mortgage Bonds, 1/12 at 100.00 AA 1,004,660 2002 Series A1, 5.600%, 7/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 1.6% 1,240 Housing Authority of the City of Bellingham, Washington, 11/04 at 100.00 A1*** 1,373,797 Housing Revenue Bonds (Cascade Meadows Project), Series 1994, 7.100%, 11/01/23 (Pre-refunded to 11/01/04) - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.1% 1,000 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 100.00 BBB 985,030 Bonds (Carroll College Inc. Project), Series 2001, 6.250%, 10/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ $ 102,920 Total Investments (cost $90,868,660) - 99.8% 86,375,163 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.2% 139,591 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $86,514,754 ==================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: 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. # Non-income producing security. On January 1, 2002, CFR Holdings, Inc. (an entity formed by Nuveen for the benefit of the Nuveen Funds owning various interests in CanFibre of Riverside) took possession of the CanFibre of Riverside assets on behalf of the various Nuveen Funds. CFR Holdings, Inc. has determined that a sale of the facility is in the best interest of shareholders and is proceeding accordingly. ## Non-income producing security. In the case of a bond, non-income producing generally denotes that the issuer has defaulted on the payment of principal or interest or has filed for bankruptcy. N/R Investment is not rated. See accompanying notes to financial statements.
Statement of ASSETS AND LIABILITIES April 30, 2002 (Unaudited)
MUNICIPAL VALUE MUNICIPAL INCOME (NUV) (NMI) - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments in municipal securities, at market value $1,917,405,966 $86,375,163 Cash 3,618,477 -- Receivables: Interest 33,425,457 1,972,054 Investments sold 3,554,536 25,000 Other assets 36,617 7,196 - ----------------------------------------------------------------------------------------------------------------------------------- Total assets 1,958,041,053 88,379,413 - ----------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Cash overdraft -- 1,361,934 Accrued expenses: Management fees 881,064 46,082 Other 1,223,322 52,209 Dividends payable 8,285,776 404,434 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 10,390,162 1,864,659 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets $1,947,650,891 $86,514,754 =================================================================================================================================== Shares outstanding 194,959,520 8,088,678 =================================================================================================================================== Net asset value per share outstanding (net assets divided by shares outstanding) $ 9.99 $ 10.70 =================================================================================================================================== NET ASSETS CONSIST OF: - ----------------------------------------------------------------------------------------------------------------------------------- Shares, $.01 par value per share $ 1,949,595 $ 80,887 Paid-in surplus 1,837,697,688 90,680,959 Undistributed (Over-distribution of) net investment income 10,036,865 (54,444) Accumulated net realized gain from investment transactions 3,766,230 300,849 - ----------------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments 94,200,513 (4,493,497) - ----------------------------------------------------------------------------------------------------------------------------------- Net assets $1,947,650,891 $86,514,754 =================================================================================================================================== Authorized shares 350,000,000 200,000,000 =================================================================================================================================== See accompanying notes to financial statements.
Statement of OPERATIONS Six Months Ended April 30, 2002 (Unaudited)
MUNICIPAL VALUE MUNICIPAL INCOME (NUV) (NMI) - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 56,218,486 $ 2,810,248 - ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 5,322,639 279,423 Shareholders' servicing agent fees and expenses 242,084 13,843 Custodian's fees and expenses 231,358 17,863 Directors' fees and expenses 8,170 400 Professional fees 13,924 5,930 Shareholders' reports - printing and mailing expenses 177,159 9,327 Stock exchange listing fees 81,055 8,114 Investor relations expense 195,967 11,026 Other expenses 36,252 3,327 - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit 6,308,608 349,253 Custodian fee credit (24,553) (7,267) - ----------------------------------------------------------------------------------------------------------------------------------- Net expenses 6,284,055 341,986 - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income 49,934,431 2,468,262 - ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain from investment transactions 3,930,410 747,092 Change in net unrealized appreciation (depreciation) of investments (37,194,968) (2,512,021) - ----------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) from investments (33,264,558) (1,764,929) - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $ 16,669,873 $ 703,333 =================================================================================================================================== See accompanying notes to financial statements.
Statement of CHANGES IN NET ASSETS (Unaudited)
MUNICIPAL VALUE (NUV) MUNICIPAL INCOME (NMI) ------------------------------------- ------------------------------------ SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 4/30/02 10/31/01 4/30/02 10/31/01 - ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 49,934,431 $ 99,466,513 $ 2,468,262 $ 5,415,096 Net realized gain from investment transactions 3,930,410 1,440,337 747,092 30,208 Change in net unrealized appreciation (depreciation) of investments (37,194,968) 81,296,118 (2,512,021) (607,664) - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 16,669,873 182,202,968 703,333 4,837,640 - ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From and in excess of net investment income (49,715,753) (99,918,088) (2,545,321) (5,604,202) From accumulated net realized gains from investment transactions (1,442,700) (4,112,336) -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (51,158,453) (104,030,424) (2,545,321) (5,604,202) - ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- 268,096 640,957 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets (34,488,580) 78,172,544 (1,573,892) (125,605) Net assets at the beginning of period 1,982,139,471 1,903,966,927 88,088,646 88,214,251 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets at the end of period $1,947,650,891 $1,982,139,471 $86,514,754 $88,088,646 =================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 10,036,865 $ 1,657,666 $ (54,444) $ 4,942 =================================================================================================================================== See accompanying notes to financial statements.
Notes to FINANCIAL STATEMENTS (Unaudited) 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 seeks to provide current income exempt from regular federal income tax by investing 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. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Directors of the Funds may establish a fair value for the security. 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 April 30, 2002, there were no such outstanding purchase commitments in either of the Funds. 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 for financial reporting 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 net investment income to its shareholders. Therefore, no federal income tax provision is required. 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. Notes to FINANCIAL STATEMENTS (Unaudited) (continued) Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend. Generally, 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 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 six months ended April 30, 2002. 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. Change in Accounting Policy As required, effective November 1, 2001, the Funds have adopted the provisions of the new AICPA Audit and Accounting Guide for Investment Companies and began accreting taxable market discount on debt securities. Prior to November 1, 2001, the Funds did not accrete taxable market discount on debt securities until they were sold. The cumulative effect of this accounting change had no impact on the total net assets or the net asset values of the Funds, but resulted in an increase in the cost of securities and a corresponding decrease in net unrealized appreciation or increase in net unrealized depreciation based on securities held by the Funds on November 1, 2001, as follows: MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ------------------------------------------------------------------------------- $8,160,521 $17,673 =============================================================================== The effect of this change for the six months ended April 30, 2002, was to increase investment income with a corresponding decrease in net unrealized appreciation or increase in net unrealized depreciation as follows: MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ------------------------------------------------------------------------------- $904,386 $20,416 =============================================================================== The Statement of Changes in Net Assets and Financial Highlights for the prior periods have not been restated to reflect this change in presentation. 2. FUND SHARES Transactions in shares were as follows: MUNICIPAL VALUE (NUV) MUNICIPAL INCOME (NMI) --------------------- ---------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED 4/30/02 10/31/01 4/30/02 10/31/01 - -------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions -- -- 23,544 55,036 =============================================================================== Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 3. DISTRIBUTIONS TO SHAREHOLDERS The Funds declared dividend distributions from their tax-exempt net investment income which were paid on June 3, 2002, to shareholders of record on May 15, 2002, as follows: MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ------------------------------------------------------------------------------- Dividend per share $.0425 $.0500 =============================================================================== 4. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities and short-term securities for the six months ended April 30, 2002, were as follows: MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ------------------------------------------------------------------------------- Purchases: Long-term municipal securities $134,258,969 $25,958,751 Short-term securities 25,225,000 7,500,000 Sales and maturities: Long-term municipal securities 182,872,587 24,351,317 Short-term securities 25,225,000 7,500,000 =============================================================================== At April 30, 2002, the cost of investments owned for federal income tax purposes were as follows: MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ------------------------------------------------------------------------------- $1,814,294,173 $90,846,781 =============================================================================== At October 31, 2001, the Funds' last fiscal year end, Municipal Income (NMI) had unused capital loss carryforwards of $446,243 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 April 30, 2002, were as follows: MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ------------------------------------------------------------------------------- Gross unrealized: appreciation $120,931,015 $ 2,808,300 depreciation (17,819,222) (7,279,918) - ------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) $103,111,793 $(4,471,618) =============================================================================== 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 the next $3 billion .5875 of 1 For net assets over $5 billion .5750 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 management 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. Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 7. INVESTMENT COMPOSITION At April 30, 2002, the revenue sources by municipal purpose, expressed as a percent of total investments, were as follows: MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ------------------------------------------------------------------------------- Basic Materials --% 9% Consumer Staples 2 6 Education and Civic Organizations 2 4 Healthcare 15 19 Housing/Multifamily 3 4 Housing/Single Family 4 3 Long-Term Care 1 5 Tax Obligation/General 6 6 Tax Obligation/Limited 11 11 Transportation 9 6 U.S. Guaranteed 8 8 Utilities 31 18 Water and Sewer 7 -- Other 1 1 - ------------------------------------------------------------------------------- 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 14% 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 (Unaudited) Selected data for a share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ----------------------------------- ------------------------------- FROM AND NET REALIZED/ IN EXCESS BEGINNING NET UNREALIZED OF NET ENDING NET ASSET INVESTMENT INVESTMENT INVESTMENT CAPITAL NET ASSET ENDING VALUE INCOME GAIN (LOSS) TOTAL INCOME GAINS TOTAL VALUE MARKET VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL VALUE (NUV) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2002(a) $10.17 $.26 $(.17) $ .09 $(.26) $(.01) $(.27) $ 9.99 $ 9.3600 2001 9.77 .51 .42 .93 (.51) (.02) (.53) 10.17 9.4800 2000 9.48 .52 .28 .80 (.51) -- (.51) 9.77 8.5625 1999 10.37 .51 (.80) (.29) (.51) (.09) (.60) 9.48 8.6250 1998 10.29 .53 .21 .74 (.53) (.13) (.66) 10.37 9.9375 1997 10.18 .58 .22 .80 (.58) (.11) (.69) 10.29 9.6250 MUNICIPAL INCOME (NMI) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2002(a) 10.92 .31 (.21) .10 (.32) -- (.32) 10.70 10.2500 2001 11.01 .67 (.06) .61 (.70) -- (.70) 10.92 11.9000 2000 11.43 .70 (.36) .34 (.70) (.06) (.76) 11.01 11.2500 1999 12.10 .70 (.61) .09 (.69) (.07) (.76) 11.43 11.0000 1998 12.02 .71 .11 .82 (.71) (.03) (.74) 12.10 12.4375 1997 11.96 .76 .11 .87 (.76) (.05) (.81) 12.02 12.5625 ==================================================================================================================================== TOTAL RETURNS 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 BASED ON BASED ON NET NET ASSETS TO AVERAGE AVERAGE TO AVERAGE AVERAGE TURNOVER MARKET VALUE+ ASSET VALUE+ (000) NET ASSETS NET ASSETS NET ASSETS NET ASSETS RATE - ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL VALUE (NUV) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2002(a) 1.52% .84% $1,947,651 .65%* 5.16%* .65%* 5.16%* 7% 2001 17.32 9.77 1,982,139 .65 5.09 .64 5.10 10 2000 5.46 8.71 1,903,967 .65 5.44 .64 5.44 17 1999 (7.50) (2.94) 1,847,333 .65 5.09 .65 5.10 13 1998 10.55 7.49 2,022,282 .65 5.18 .65 5.18 19 1997 10.39 8.18 2,005,380 .68 5.71 .68 5.71 19 MUNICIPAL INCOME (NMI) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2002(a) (11.37) .90 86,515 .81* 5.73* .80* 5.74* 28 2001 12.24 5.68 88,089 .83 6.14 .83 6.15 11 2000 9.45 3.02 88,214 .80 6.20 .77 6.23 6 1999 (5.77) .74 91,123 .82 5.88 .82 5.89 31 1998 5.21 7.06 95,756 .82 5.91 .82 5.91 23 1997 11.96 7.60 94,283 .83 6.39 .83 6.39 9 ==================================================================================================================================== * Annualized. ** After custodian fee credit, where applicable. + Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in net asset value per share. Total returns are not annualized. (a) For the six months ended April 30, 2002. See accompanying notes to financial statements.
Build Your Wealth AUTOMATICALLY SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. 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 reinvestment 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 advisor or call us at (800) 257-8787. 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 JPMorgan Chase Bank P.O. Box 660086 Dallas, TX 75266-0086 (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 six-month period ended April 30, 2002. 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: NUVEEN INVESTMENTS Nuveen Investments o 333 West Wacker Drive Chicago, IL 60606 o www.nuveen.com FSA-1-4-02 -----END PRIVACY-ENHANCED MESSAGE-----