-----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, OVb860CtcDbE14wEnnc78Up70+KEjAIuNEMI7Wk5byZvExEqCQsGwi01TuypcCG4 KdNh5AKMDHLPLJV2OeIpSQ== 0000891804-01-501246.txt : 20010703 0000891804-01-501246.hdr.sgml : 20010703 ACCESSION NUMBER: 0000891804-01-501246 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010430 FILED AS OF DATE: 20010702 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN MUNICIPAL INCOME FUND INC CENTRAL INDEX KEY: 0000830271 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MN FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05488 FILM NUMBER: 1673535 BUSINESS ADDRESS: STREET 1: 333 W WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 N-30D 1 nv24576ed.txt FSA-1-4-01 SEMIANNUAL REPORT April 30, 2001 Logo: NUVEEN Investments Municipal Closed-End Exchange-Traded Funds Dependable, tax-free income to help you keep more of what you earn. MUNICIPAL VALUE NUV MUNICIPAL INCOME NMI Invest well. Look ahead. LEAVE YOUR MARK. LESS MAIL, MORE FREEDOM WITH ONLINE FUND REPORTS There is a new way to receive your Nuveen Fund updates faster than ever. Nuveen now can link you with electronic versions of the important financial information we send you by regular mail. By registering for online access via the internet, you will be able to view and save the Fund information you currently receive in the mail. This information can be stored on your computer and retrieved any time. In addition, you can select only the specific pages you want to view or print. With this new service, 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 your computer mouse on the internet address provided. You'll be saving time, as well as saving your Fund paper, printing and distribution expenses. Registering for electronic access is easy and only takes a few minutes. (see box on right) The e-mail address you provide 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. SIGN UP TODAY-- Here's what you need to do If your Nuveen Fund dividends are PAID TO YOUR BROKERAGE ACCOUNT, follow the steps outlined below: 1 Go 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 infor-mation 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 COME DIRECTLY TO YOU FROM NUVEEN, follow the steps outlined below: 1 Go to www.nuveen.com 2 Select the Exchange-Traded Funds section, then click on Tools. Select the E-Report Enrollment option. 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 Submit. 4 Confirm the information you 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. Photo of: Timothy R. Schwertfeger Chairman of the Board Sidebar text: "Your Nuveen Fund also features several characteristics that can help make it an essential part of your overall investment strategy." Dear Shareholder I am pleased to have this opportunity to report on the recent performance of your Nuveen Fund. During the period covered by this report, your Fund continued to meet its primary objective of providing you with attractive monthly tax-free income from a portfolio of quality municipal bonds. Detailed information on your Fund can be found in the Portfolio Managers' Comments and Performance Overview sections later in this report. I urge you to take the time to read them. 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 turbulent times like these, prudent investors understand the importance of diversification, balance, and risk management, all attributes your Nuveen Fund can bring to your portfolio. With strong long-term performance achieved through consistent, disciplined professional management, your Nuveen Fund also illustrates the power of taking a long-term view toward financial growth and success. Invest Well.Look Ahead.Leave Your Mark. Today, perhaps more than ever, investors have the ability to make a lasting impact on their families and their world for generations to come. For more than 100 years, Nuveen has specialized in offering quality investments such as the Nuveen Funds to those seeking to accumulate and preserve wealth and establish a lasting legacy. Our mission continues to be to provide assistance to you and your financial advisor by offering the investment services and products that can help you leave your mark. We thank you for continuing to choose Nuveen Investments as your partner as you work toward that goal. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board June 15, 2001 Sidebar text: "Today, perhaps more than ever, investors have the ability to make a lasting impact on their families and their world for generations to come." Nuveen National Municipal Closed-End Exchange-Traded Funds (NUV, NMI) Portfolio Managers' Comments Portfolio managers Tom Spalding and Steve Peterson review national 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 at Nuveen, has managed NUV since its inception in 1987, while Steve, a 13-year veteran of Nuveen, assumed portfolio management responsibility for NMI in 1998. WHAT FACTORS HAD THE GREATEST INFLUENCE ON THE U.S. ECONOMY AND THE MUNICIPAL MARKET DURING THIS REPORTING PERIOD? The major factors affecting the economy and the municipal market over the twelve months ended April 30, 2001, were the Federal Reserve's interest rate easing and a slowdown in economic growth. In January 2001, the Fed began a series of 50 basis point reductions in the fed funds rate, bringing this benchmark rate by the end of the reporting period to 4.50%. (Following the close of the period covered in this report, the Fed reduced rates by another 50 basis points on May 15, bringing the federal funds rate to 4.00%, its lowest level since 1994.) The consensus among many market observers is that the Fed is poised to continue easing rates as long as signs of a significant economic slowdown remain. In the municipal market, continued tight new issue supply helped many bonds perform well. Generally positive economic conditions over the past decade enabled more cities and states to use pay-as-you-go funding for necessary projects, rather than financing obtained through new issuance. 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. As a result, municipal bond prices trended generally higher over this reporting period. Nevertheless, we believe the municipal market continued to represent good value. As of April 30, 2001, long-term municipal yields were 97% of 30-year Treasury yields, compared with 101% in April 2000. HOW DID NUV AND NMI PERFORM OVER THE PAST TWELVE MONTHS? For the year ended April 30, 2001, NUV and NMI produced total returns on net asset value (NAV) as shown in the accompanying table. The annual returns for the Lehman Brothers Municipal Bond Index1 and the Funds' Lipper Peer Group2 are also presented. TOTAL RETURN LEHMAN LIPPER MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2 - -------------------------------------------------------------------------------- 1 YEAR 1 YEAR 1 YEAR TAXABLE- ENDED ENDED ENDED 4/30/01 EQUIVALENT3 4/30/01 4/30/01 4/30/01 - -------------------------------------------------------------------------------- NUV 5.62% 8.14% 10.14% 10.37% 7.93% - -------------------------------------------------------------------------------- NMI 6.05% 8.77% 1.78% 10.37% 7.93% - -------------------------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. Since mid-2000, the combination of relatively tight municipal supply, the Fed's easing, and generally favorable technicals have produced a favorable total return environment. The Funds' participation in this recovery is reflected in the total returns on NAV listed in the previous table. However, the Funds' ability to participate fully in market gains was somewhat constrained by their relatively shorter durations.4 As of April 30, 2001, the durations of NUV and NMI were 7.29 and 7.28, respectively, compared with 7.60 for the unleveraged Lehman Brothers Municipal Bond Index. In addition, the performance of NMI was affected by events involving one of that Fund's holdings. (See the question on "Key Investment Strategies" for a more detailed discussion.) 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 12 funds in the Lipper General and Insured Unleveraged Municipal Debt Funds category. Fund and Lipper returns assume reinvestment of dividends. 3 The taxable-equivalent yield represents the yield that must be earned on a taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. The taxable-equivalent yield is based on the Fund's market yield on the indicated date and a federal income tax rate of 31%. 4 Duration is a measure of a Fund's NAV volatility in reaction to interest rate movements. HOW DID THIS MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES? Over the past twelve months, we've maintained stable dividends for both NUV and NMI. As of April 30, 2001, NUV had provided 30 consecutive months of stable dividends, while NMI had offered shareholders 34 consecutive months of steady or increasing dividends. During this period, as the stock market remained volatile and the bond market generally performed well, many investors returned to tax-free fixed-income alternatives as a way to add balance to their portfolios and reduce overall risk. As a result, the share prices of these Funds improved (see the charts on the individual Performance Overview pages). In NUV, strong investor demand helped to narrow the discount (share price below NAV) by more than 540 basis points over the past twelve months. In NMI, the combination of a rising share price and a lower NAV caused by credit issues moved the Fund to a premium (share price above NAV). Since the market price of NUV remains lower than the actual value of the bonds in its portfolio, shareholders may want to consider taking advantage of this opportunity to add to their holdings of this Nuveen Fund. WHAT KEY STRATEGIES WERE USED TO MANAGE NUV AND NMI DURING THE YEAR ENDED APRIL 30, 2001? Despite the relatively tight supply of new municipal issuance during most of the past year, the Funds continued to meet their goal of keeping assets fully invested and working for shareholders. However, lower new issue supply also meant relatively fewer opportunities to make trades that would substantially enhance the Funds' holdings. As issuance did become available in the market, we focused on strengthening long-term dividend-payment capabilities, enhancing call protection, and purchasing bonds with the potential to add value and diversification to the Funds' portfolios. In NUV, for example, we recently added to our holding of bonds issued by the Michigan State Hospital Finance Authority for Detroit Medical Center. The turnaround in this credit and its overall performance helped NUV outperform the majority of funds in its Lipper Peer Group, despite the Fund's shorter duration. This addition to the portfolio provides an excellent example of the way Nuveen research analysts help us find and understand attractive opportunities in dynamic sectors such as healthcare that are facing challenges and change. The transportation sector, which saw heavier issuance than the rest of the market, also provided several opportunities for NUV to take advantage of widening spreads. As airports try to find solutions to overcrowding and delay problems through the addition of runways and expanded facilities, we expect to see this level of issuance to continue and even increase. Among the airports that either have recently issued or will issue bonds are Hawaii, St. Louis, Minneapolis, Chicago O'Hare, Dallas/Ft. Worth, Atlanta, and Denver. As mentioned earlier, the total return performance of NMI was impacted by credit-related events in our holding of project finance bonds issued by the California Pollution Control Financing Authority for CanFibre of Riverside. These bonds, which represent about 3% of NMI's portfolio, were adversely affected by the bankruptcy filing of the particleboard plant's general contractor and by the California energy crisis, which raised electricity costs and interfered with plant operations. Currently, Nuveen is actively involved in seeking a resolution to the CanFibre situation that we believe will serve the best interests of our shareholders. NMI also continues to hold bonds issued by Erie County, New York, for the CanFibre plant in Lackawanna. While this plant also was affected by the general contractor's bankruptcy, we continue to monitor this holding very closely and remain cautiously optimistic that the situation there is improving. Despite these credit concerns, NMI continued to perform as designed, providing shareholders with stable tax-free dividends and an exceptionally attractive market yield. Over the past year, we focused on further supporting and enhancing the Fund's yield by adding to our holdings in the BBB and non-rated sectors, particularly in hospital and independent power plant bonds, as credit spreads widened. As of April 30, 2001, NUV continued to offer excellent credit quality, with 65% of its portfolio invested in bonds rated AAA/U.S. guaranteed and AA. The Fund also had a 14% allocation of BBB and non-rated bonds, which generally provided higher yields and helped to maintain NUV's income stream. At April 30, 2001, NMI had allocated 53% of its portfolio to the BBB and non-rated categories and 33% to bonds rated AAA/U.S. guaranteed and AA, up from 29% a year ago. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND NUV AND NMI IN PARTICULAR? Overall, our outlook for the fixed-income markets during the next twelve months continues to be positive. Demand for tax-exempt municipal bonds is anticipated to remain strong, as investors look for ways to rebalance their portfolios and reduce potential risk. If interest rates continue to fall and the pace of refundings accelerates, new municipal bond issuance nationwide in 2001 could exceed $200 billion. We will continue to closely monitor the economy, including Federal Reserve policies and the impact of the tax reduction bill, in order to be prepared to respond appropriately to any developing situations. Looking specifically at these two Funds, both NUV and NMI continue to offer good levels of call protection in 2001 and 2002, with 21% of NUV's portfolio and 9% of NMI subject to calls over the next 20 months, depending on the interest rate environment during this period. In general, these positions appear to be very manageable, and we foresee no problems in working through them. While we cannot control the direction of interest rates, we continue to work to reduce the Funds' call exposure and to actively manage the Funds to mitigate the longer-term effects of the bond call process. We will continue to look for opportunities to enhance the dividend-paying capabilities of both funds. As one example, if bonds backed by the master tobacco settlement continue to remain attractive, we plan to increase our holdings in this area. We also will keep a sharp eye out for opportunities in the transportation and healthcare sectors. As value-oriented investors, we plan to continue to look for areas of the market that can add value for our shareholders and strengthen the Funds' dividend-payment capabilities. We believe both NUV and NMI will continue to play an important role in investors' long-range financial programs, providing balance and diversification, dependable tax-free income, and quality investments. Nuveen Municipal Value Fund, Inc. Performance Overview As of April 30, 2001 NUV PIE CHART: Credit Quality AAA/U.S. Guaranteed 43% AA 22% A 19% BBB 11% NR 3% Other 2% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $9.08 - -------------------------------------------------- Net Asset Value $9.89 - -------------------------------------------------- Market Yield 5.62% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.14% - -------------------------------------------------- Fund Net Assets ($000) $1,928,708 - -------------------------------------------------- Average Effective Maturity (Years) 19.61 - -------------------------------------------------- Average Duration 7.29 - -------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 6/87) - -------------------------------------------------- On Share Price On NAV - -------------------------------------------------- 1-Year 17.78% 10.14% - -------------------------------------------------- 5-Year 5.65% 5.92% - -------------------------------------------------- 10-Year 5.10% 6.38% - -------------------------------------------------- TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) - -------------------------------------------------- Utilities 30% - -------------------------------------------------- Healthcare 16% - -------------------------------------------------- Transportation 12% - -------------------------------------------------- Tax Obligation/Limited 11% - -------------------------------------------------- U.S. Guaranteed 8% - -------------------------------------------------- Bar Chart: 2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 5/00 0.0425 6/00 0.0425 7/00 0.0425 8/00 0.0425 9/00 0.0425 10/00 0.0425 11/00 0.0425 12/00 0.0425 1/01 0.0425 2/01 0.0425 3/01 0.0425 4/01 0.0425 Line Chart: Share Price Performance 5/5/00 8.06 8.06 8.06 8.19 8.38 8.5 8.38 8.5 8.44 8.63 8.56 8.5 8.63 8.69 8.69 8.75 8.81 8.81 8.88 8.75 8.69 8.69 8.69 8.56 8.63 8.56 8.63 8.69 8.63 8.5 8.5 8.56 8.75 8.75 9 9.13 9.13 9.13 9.33 9.37 9.19 9.2 9.19 9.27 9.2 9.21 9.25 9.18 8.98 9.08 4/30/01 9.1 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 31%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2000 of $0.0236 per share. Nuveen Municipal Income Fund, Inc. Performance Overview As of April 30, 2001 NMI PIE CHART: Credit Quality AAA/U.S. Guaranteed 24% AA 9% A 12% BBB 25% NR 28% Other 2% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $11.60 - -------------------------------------------------- Net Asset Value $10.75 - -------------------------------------------------- Market Yield 6.05% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.77% - -------------------------------------------------- Fund Net Assets ($000) $86,417 - -------------------------------------------------- Average Effective Maturity (Years) 18.60 - -------------------------------------------------- Average Duration 7.28 - -------------------------------------------------- ANNUALIZED TOTAL RETURN (Inception 4/88) - -------------------------------------------------- On Share Price On NAV - -------------------------------------------------- 1-Year 12.69% 1.78% - -------------------------------------------------- 5-Year 6.59% 4.71% - -------------------------------------------------- 10-Year 6.37% 5.94% - -------------------------------------------------- TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) - -------------------------------------------------- Utilities 19% - -------------------------------------------------- Tax Obligation/General 13% - -------------------------------------------------- Healthcare 12% - -------------------------------------------------- Basic Materials 10% - -------------------------------------------------- Long-Term Care 9% - -------------------------------------------------- Bar Chart: 2000-2001 Monthly Tax-Free Dividends Per Share 5/00 0.0585 6/00 0.0585 7/00 0.0585 8/00 0.0585 9/00 0.0585 10/00 0.0585 11/00 0.0585 12/00 0.0585 1/01 0.0585 2/01 0.0585 3/01 0.0585 4/01 0.0585 Line Chart: Share Price Performance 5/5/00 10.88 10.75 10.88 11.19 11.63 11.63 11.63 11.5 11.38 11.5 11.56 11.81 11.75 11.69 11.88 11.88 11.69 11.88 12.06 11.81 11.75 11.69 11.75 11.63 11.31 11.06 11.31 11.19 11.19 11.25 11 11 11.38 11.69 11.94 12 12.13 11.94 11.97 11.91 11.75 11.72 11.75 11.79 11.8 11.75 11.84 11.82 11.67 11.45 4/30/01 11.51 Weekly Closing Price Past performance is not predictive of future results. 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 31%. Nuveen Municipal Value Fund, Inc. (NUV) Portfolio of Investments April 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Alabama - 2.0% $ 2,170 Alabama Housing Finance Authority, Single Family Mortgage 4/08 at 102 Aaa $ 2,125,146 Revenue Bonds (Collateralized Home Mortgage Revenue Bond Program), 1998 Series A-2, 5.450%, 10/01/28 (Alternative Minimum Tax) 5,000 The Industrial Development Board of the Town of Courtland, 11/09 at 101 Baa1 5,228,400 Alabama, Solid Waste Disposal Revenue Bonds (Champion International Corporation Project), Series 1999A, 6.700%, 11/01/29 (Alternative Minimum Tax) 4,000 The Medical Clinic Board of the City of Jasper, Alabama, 7/02 at 102 A3 4,019,080 Hospital Revenue Bonds (Walker Regiona Medical Center, Inc. Project), Series 1993, 6.375%, 7/01/18 12,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101 AAA 11,720,280 Warrants, Series 1999-A, 5.375%, 2/01/36 16,850 BMC Special Care Facilities Financing Authority of the City of 11/08 at 101 AAA 15,357,259 Montgomery, Alabama, Revenue Bonds (Baptist Health), Series 1998-B, 5.000%, 11/15/29 - ------------------------------------------------------------------------------------------------------------------------------------ Arizona - 1.4% 4,900 Arizona Health Facilities Authority, Hospital Revenue Bonds 11/09 at 100 A2 4,969,335 (Phoenix Children's Hospital), Series 1999A, 6.250%, 11/15/29 16,000 Arizona Health Facilities Authority, Revenue Bonds (Catholic 7/10 at 101 BBB 15,879,840 Healthcare West), 1999 Series A, 6.625%, 7/01/20 5,130 Yuma Regional Medical Center on behalf of Hospital District No. 1 8/02 at 101 1/2 N/R*** 5,489,254 of Yuma County, Arizona, Hospital Revenue Improvement and Refunding Bonds (Yuma Regional Medical Center Project), Series 1992, 8.000%, 8/01/17 (Pre-refunded to 8/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ Arkansas - 0.2% 1,635 City of Conway, Arkansas, Sales and Use Tax Capital Improvement 12/06 at 101 AAA 1,648,718 Bonds, Series 1997A, 5.350%, 12/01/17 2,750 Jefferson County, Arkansas, Pollution Control Revenue Refunding 12/02 at 102 BBB- 2,627,680 Bonds (Entergy Arkansas, Inc. Project), Series 1997, 5.600%, 10/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ California - 6.6% California Educational Facilities Authority, Revenue Bonds, Series 2000, Loyola Marymount University: 3,655 0.000%, 10/01/23 10/09 at 41 13/16 Aaa 924,569 7,310 0.000%, 10/01/24 10/09 at 39 3/16 Aaa 1,729,327 9,000 State of California Department of Water Resources, Water System 6/03 at 101 1/2 AA 9,193,500 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 AA 13,010,270 Revenue Bonds (Central Valley Project), Series M, 4.750%, 12/01/24 17,155 State Public Works Board of the State of California, The Regents 6/03 at 102 Aa2 17,206,980 of the University of California, Lease Revenue Refunding Bonds (Various University of California Projects), 1993 Series A, 5.500%, 6/01/21 15,500 California Statewide Communities Development Authority, 4/09 at 101 BBB 14,537,295 Certificates of Participation, The Internext Group, 5.375%, 4/01/17 6,530 California Statewide Communities Development Authority, 7/03 at 102 AA- 6,595,953 Certificates of Participation, St. Joseph Health System Obligated Group, 5.500%, 7/01/14 3,000 Community Facilities District No. 98-2 of the Capistrano Unified 9/09 at 102 N/R 2,880,390 School District, Ladera, California, Special Tax Bonds, Series 1999, 5.750%, 9/01/29 5,375 Central Joint Powers Health Financing Authority, Certificates of 2/03 at 100 Baa1 4,575,630 Participation (Community Hospital of Central California), Series 1993, 5.000%, 2/01/23 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ California (continued) Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A: $ 30,000 0.000%, 1/01/22 No Opt. Call AAA $ 9,493,200 2,500 6.000%, 1/01/34 (Pre-refunded to 1/01/07) 1/07 at 100 AAA 2,763,900 7,500 Department of Water and Power of The City of Los Angeles, 11/03 at 102 AAA 7,460,850 California, Electric Plant Refunding Revenue Bonds, Second Issue of 1993, 5.400%, 11/15/31 30,470 Los Angeles County Public Works Financing Authority, Lease 12/03 at 102 AAA 30,340,198 Revenue Bonds (Multiple Capital Facilities Project IV), 4.750%, 12/01/13 7,300 County of San Diego, California, Certificates of Participation, 9/09 at 101 Baa3 7,475,054 The Burnham Institute, 6.250%, 9/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ Colorado - 7.9% 12,515 Colorado Health Facilities Authority, Revenue Bonds, Series 1994 5/04 at 102 AA- 12,583,457 (Sisters of Charity Health Care Systems, Inc.), 5.250%, 5/15/14 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992B: 3,680 7.000%, 11/15/03 (Alternative Minimum Tax) 11/02 at 102 A 3,894,102 2,125 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 2,283,929 8,290 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 8,786,239 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 Aaa 699,422 5,045 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 A 5,309,812 7,515 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 8,024,667 29,870 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 A 31,391,877 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A: 3,475 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 3,645,553 9,635 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 A 10,040,248 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D: 1,820 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,899,807 6,930 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 7,200,131 10,275 7.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 10,483,685 39,745 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 40,336,803 5,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 102 AAA 5,162,800 Series 2000A, 5.750%, 9/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ Connecticut - 0.4% 6,820 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AA 7,068,862 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, Washington, D.C., Senior 10/08 at 100 AAA 24,356,690 Lien Dedicated Tax Revenue Bonds, Series 1998, 4.750%, 10/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ Florida - 2.1% 5,000 Orange County, Florida, Health Facilities Authority, Hospital 10/09 at 101 A 4,964,250 Revenue Bonds (Orlando Regional Healthcare System), Series 1999E, 6.000%, 10/01/26 5,000 Orlando Utilities Commission, Florida, Water and Electric 10/02 at 100 Aa2 5,006,750 Subordinated Revenue Bonds, Series 1992A, 5.500%, 10/01/27 8,000 Orlando Utilities Commission, Florida, Water and Electric 10/03 at 102 Aa2 7,890,720 Subordinated Revenue Refunding Bonds, Series 1993A, 5.250%, 10/01/23 Orlando Utilities Commission, Florida, Water and Electric Subordinated Revenue Bonds, Series 1993B: 14,000 5.600%, 10/06/17 10/03 at 102 Aa2 14,306,460 7,000 5.250%, 10/01/23 10/03 at 101 Aa2 6,841,870 2,500 Orlando Utilities Commission, Florida, Water and Electric Revenue 10/02 at 101 Aa1 2,456,050 Bonds, Series 1993, 5.125%, 10/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ Georgia - 2.2% 20,350 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/09 at 101 AAA 18,612,924 Series 1999A, 5.000%, 11/01/38 Nuveen Municipal Value Fund, Inc. (NUV) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Georgia (continued) Coffee County Hospital Authority, Georgia, Revenue Anticipation Certificates (Coffee Regional Medical Center, Inc. Project), Series 1997A: $ 2,500 6.250%, 12/01/06 No Opt. Call N/R $ 2,466,925 21,100 6.750%, 12/01/26 12/06 at 102 N/R 19,855,100 2,250 Hospital Authority of the City of Royston, Georgia, Revenue 7/09 at 102 N/R 1,881,968 Anticipation Certificates (Ty Cobb Healthcare System, Inc. Project), Series 1999, 6.500%, 7/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ Illinois - 11.4% 2,060 Aurora, Illinois, Golf Course Revenue Bonds, Series 2000, 6.375%, 1/01/20 1/10 at 100 A+ 2,180,592 5,000 City of Chicago, General Obligation Bonds, Series A of 1992, 1/02 at 102 AAA 5,176,550 6.250%, 1/01/12 (Pre-refunded to 1/01/02) 2,000 Chicago School Reform Board of Trustees of the Board of Education 12/07 at 102 AAA 1,953,220 of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1997A, 5.250%, 12/01/22 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1998A: 15,000 0.000%, 12/01/24 No Opt. Call AAA 3,769,650 47,500 0.000%, 12/01/28 No Opt. Call AAA 9,368,900 1,125 Metropolitan Water Reclamation District of Greater Chicago, No Opt. Call AA+ 1,328,434 General Obligation Capital Improvement Bonds, Series of June 1991, 7.000%, 1/01/11 5,190 Illinois Development Finance Authority, Industrial Development 6/02 at 102 N/R 5,254,408 Revenue Bonds, Series 1992 (Plano Molding Company Project), 7.750%, 6/01/12 (Alternative Minimum Tax) 3,000 Illinois Development Finance Authority, Pollution Control Revenue No Opt. Call A- 2,954,310 Refunding Bonds, Series 1994 (Commonwealth Edison Company Project), 5.850%, 1/15/14 Illinois Development Finance Authority, Revenue Bonds, Series 1996B (The Presbyterian Home Lake Forest Place Project): 6,495 6.400%, 9/01/31 (Pre-refunded to 9/01/06) 9/06 at 102 AAA 7,345,131 990 6.400%, 9/01/31 9/06 at 102 AAA 1,046,588 1,800 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 667,116 Program Revenue Bonds, Series 2000 (Rockford School District Number 205 Project), 0.000%, 2/01/19 8,000 Illinois Development Finance Authority, Revenue Bonds, 9/11 at 100 AAA 7,351,040 Series 2001 (Illinois Wesleyan University), 5.125%, 9/01/35 14,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 10/03 at 102 A- 14,768,600 Series 1993 (Illinois Masonic Medical Center), 5.500%, 10/01/19 7,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1993 11/03 at 102 AAA 6,847,750 (Swedish American Hospital), 5.375%, 11/15/23 18,015 Illinois Health Facilities Authority, Revenue Bonds, Series 1993 11/03 at 102 AAA 17,426,990 (Rush-Presbyterian-St. Luke's Medical Center Obligated Group), 5.250%, 11/15/20 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 (South Suburban Hospital): 1,150 7.000%, 2/15/18 (Pre-refunded to 2/15/02) 2/02 at 102 A*** 1,206,017 4,350 7.000%, 2/15/18 No Opt. Call A*** 5,132,391 8,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1997 8/07 at 101 AAA 7,592,000 (Sherman Health Systems), 5.250%, 8/01/22 15,000 Illinois Health Facilities Authority, Revenue Bonds, Series 2000 5/10 at 101 A3 15,360,300 (Condell Medical Center), 6.500%, 5/15/30 15,000 Illinois Health Facilities Authority, Revenue Bonds, Series 2001 2/11 at 101 AAA 14,261,850 (Edward Hospital Obligation Group), 5.250%, 2/15/34 48,805 State of Illinois, Build Illinois Bonds (Sales Tax Revenue Refunding 6/02 at 101 AAA 48,864,054 Bonds), 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 7,718,666 12,300 0.000%, 6/15/18 No Opt. Call AAA 4,697,985 Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project Bonds, Series 1994B: 7,250 0.000%, 6/15/18 No Opt. Call AAA 2,769,138 9,900 0.000%, 6/15/29 No Opt. Call AAA 1,924,065 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Illinois (continued) $ 16,550 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA $ 5,079,195 Place Expansion Project Refunding Bonds, Series 1996A, 0.000%, 12/15/21 11,650 Regional Transportation Authority, Cook, DuPage, Kane, Lake, 6/04 at 102 AAA 12,729,023 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1994A, 6.250%, 6/01/24 1,670 Tri-City Regional Port District, Illinois, Port and Terminal Facilities No Opt. Call N/R 1,675,645 Revenue Bonds, Series 1998B (1998 Refunding and Dock #2 Enhancement Project), 5.875%, 7/01/08 (Alternative Minimum Tax) 2,295 School District Number 161, Will County, Illinois, Capital No Opt. Call Aaa 904,276 Appreciation School Bonds, Series 1999, 0.000%, 1/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ Indiana - 2.6% 10,000 Indiana Health Facility Financing Authority, Hospital Revenue 11/07 at 102 AAA 9,727,500 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 AA 17,427,942 Bonds, Series 1996A (Clarian Health Partners, Inc.), 6.000%, 2/15/21 4,840 Indianapolis Airport Authority, Special Facilities Revenue Bonds, 7/04 at 102 BBB 5,122,220 Series 1994 (Federal Express Corporation Project), 7.100%, 1/15/17 (Alternative Minimum Tax) The Indianapolis, Indiana, Local Public Improvement Bond Bank, Revenue Bonds, Series 1999E: 12,500 0.000%, 2/01/21 No Opt. Call AAA 4,040,500 10,000 0.000%, 2/01/27 No Opt. Call AAA 2,259,500 9,155 City of South Bend, Indiana, Multifamily Housing Revenue 5/01 at 102 N/R 8,657,700 Refunding Bonds, Issue of 1994, Series A (The Pointe at St. Joseph Project), 6.200%, 12/15/18 500 City of South Bend, Indiana, Multifamily Housing Revenue 5/01 at 102 N/R 483,125 Refunding Bonds, Issue of 1994, Series B (The Pointe at St. Joseph Project), 6.450%, 12/15/18 (Alternative Minimum Tax) 3,169 City of South Bend, Indiana, Multifamily Housing Revenue 12/03 at 100 N/R 1,997,942 Refunding Bonds, Issue of 1994, Series C (The Pointe at St. Joseph Project), 3.850%, 12/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ Iowa - 0.1% 14,670 Iowa Housing Finance Authority, Single Family Housing Bonds, No Opt. Call AAA 2,695,466 1984 Issue A, 0.000%, 9/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ Kansas - 0.4% 6,650 City of Newton, Kansas, Hospital Revenue Bonds (Newton 11/04 at 102 N/R*** 7,582,530 Healthcare Corporation), 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 A1 13,228,375 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 AAA 8,201,056 Revenue Refunding Bonds (FHA-Insured Mortgage Loans - Section 8 Assisted Projects), Series 1997A, 6.100%, 1/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ Louisiana - 1.1% 18,445 Louisiana Public Facilities Authority, Hospital Revenue Refunding 5/01 at 100 AAA 21,967,442 Bonds (Southern Baptist Hospitals, Inc. Project), Series 1986, 8.000%, 5/15/12 - ------------------------------------------------------------------------------------------------------------------------------------ Maine - 1.7% 14,365 Maine State Housing Authority, Mortgage Purchase Bonds, 2/04 at 102 AA 14,644,399 1994 Series A, 5.550%, 11/15/14 17,240 Maine State Housing Authority, Mortgage Purchase Bonds, 5/05 at 102 AA 17,904,430 1995 Series A-2, 6.650%, 11/15/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ Maryland - 0.6% 10,900 Community Development Administration of Maryland, Department 3/07 at 101 1/2 Aa2 11,170,320 of Housing and Community Development, Residential Revenue Bonds, Series 1997B, 5.875%, 9/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ Massachusetts - 3.9% 1,080 Massachusetts Municipal Wholesale Electric Company, Power No Opt. Call BBB+ 1,205,486 Supply System Revenue Bonds, 1987 Series A, 8.750%, 7/01/18 Nuveen Municipal Value Fund, Inc. (NUV) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Massachusetts (continued) $ 5,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R $ 5,171,800 Revenue Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15 16,400 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 14,874,964 System Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37 8,000 Massachusetts Turnpike Authority, Metropolitan Highway System 1/07 at 102 AAA 7,444,480 Revenue Bonds, 1997 Series B (Subordinated), 5.125%, 1/01/37 3,000 Massachusetts Turnpike Authority, Metropolitan Highway System 1/09 at 101 AAA 2,716,320 Revenue Bonds, 1999 Series A (Subordinated), 5.000%, 1/01/39 36,580 Massachusetts Water Resources Authority, General Revenue 11/02 at 102 AA 37,155,038 Refunding Bonds, 1992 Series B, 5.500%, 11/01/15 6,000 Massachusetts Water Pollution Abatement Trust, Pool Program 8/10 at 101 AAA 6,041,040 Bonds, Series 6, 5.500%, 8/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ Michigan - 5.6% 6,000 The Economic Development Corporation of the City of Dearborn, 8/04 at 102 AAA 5,835,300 Michigan, Hospital Revenue Refunding Bonds (Oakwood Obligated Group), Series 1994A, 5.250%, 8/15/21 10,000 City of Detroit Local Development Finance Authority, Tax 5/09 at 101 N/R 8,412,400 Increment Bonds, Series 1998A, 5.500%, 5/01/21 1,400 City of Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 101 AAA 1,414,210 Refunding Bonds, Series 1995-B, 5.250%, 7/01/15 County of Grand Traverse, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds (Munson Healthcare Obligated Group), Series 1992A: 2,700 6.250%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 2,840,373 1,300 6.250%, 7/01/12 7/02 at 102 AAA 1,356,836 8,925 Michigan State Hospital Finance Authority, Revenue and Refunding 8/03 at 102 BBB- 7,979,664 Bonds (The Detroit Medical Center Obligated Group), Series 1993A, 6.500%, 8/15/18 7,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/01 at 102 Aaa 7,223,440 Bonds (The Detroit Medical Center Obligated Group), Series 1991A, 7.500%, 8/15/11 (Pre-refunded to 8/15/01) 35,305 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB- 26,324,114 Bonds ( The Detroit Medical Center Obligated Group), Series 1998A, 5.250%, 8/15/28 4,320 Michigan State Housing Development Authority, Rental Housing 4/03 at 102 AAA 4,387,608 Revenue Bonds, 1993 Series A, 5.875%, 10/01/17 15,750 Michigan State Housing Development Authority, Rental Housing 6/05 at 102 AAA 16,469,460 Revenue Bonds, 1995 Series B, 6.150%, 10/01/15 25,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/05 at 102 AAA 26,665,000 Bonds (Detroit Edison Company Pollution Control Bonds Project), Collateralized Series 1995AA, 6.400%, 9/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ Minnesota - 0.2% 3,900 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102 AAA 3,998,436 1995 Series D, 5.900%, 8/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ Mississippi - 0.7% 13,000 Mississippi Hospital Equipment and Facilities Authority, Revenue 5/03 at 102 AAA 13,226,460 Refunding and Improvement Bonds (North Mississippi Health Services), 1993 Series 1, 5.750%, 5/15/16 - ------------------------------------------------------------------------------------------------------------------------------------ Missouri - 0.3% The Industrial Development Authority of the City of West Plains, Missouri Hospital Facilities Revenue Bonds (Ozark Medical Center), Series 1997: 1,750 5.500%, 11/15/12 11/07 at 101 N/R 1,535,608 1,000 5.600%, 11/15/17 11/07 at 101 N/R 840,750 3,075 The Industrial Development Authority of the City of West Plains, 11/09 at 101 N/R 2,793,453 Missouri Hospital Facilities Revenue Bonds (Ozark Medical Center), Series 1999, 6.750%, 11/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ Nebraska - 0.1% 2,450 Consumers Public Power District, Nebraska, Nuclear Facility 7/01 at 100 A+ 2,452,818 Revenue Bonds, 1968 Series, 5.100%, 1/01/03 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Nevada - 1.0% Director of the State of Nevada Department of Business and Industry, Revenue Bonds (Las Vegas Monorail Project), 1st Tier Series 2000: $ 7,500 0.000%, 1/01/24 No Opt. Call AAA $ 2,047,425 18,000 5.375%, 1/01/40 1/10 at 100 AAA 17,346,960 - ------------------------------------------------------------------------------------------------------------------------------------ New Hampshire - 1.0% 20,785 Business Finance Authority of the State of New Hampshire, 10/03 at 102 A3 20,041,313 Pollution Control Refunding Revenue Bonds (The United Illuminating Company Project), 1993 Series A, 5.875%, 10/01/33 - ------------------------------------------------------------------------------------------------------------------------------------ New Jersey - 2.1% 25,625 New Jersey Economic Development Authority, Special Facilities 9/09 at 101 BB 23,906,075 Revenue Bonds (Continental Airlines, Inc. Project), Series 1999, 6.250%, 9/15/29 (Alternative Minimum Tax) 12,250 New Jersey Economic Development Authority, Special Facilities 11/10 at 101 BB 12,440,855 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 BBB- 4,993,350 Bonds, Trinitas Hospital Obligated Group Issue, Series 2000, 7.500%, 7/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ New York - 9.6% 5,360 Village of East Rochester, New York, Housing Authority, 8/07 at 102 AAA 5,518,924 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 AAA 10,794,520 31,595 5.500%, 12/01/29 6/03 at 101 A- 31,345,715 15,500 Long Island Power Authority, New York, Electric System General 9/11 at 100 A- 15,312,295 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 1/2 A 5,193,650 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 1/2 A 5,236,350 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 1/2 A 10,593,200 Fiscal 1997 Series E, 6.000%, 8/01/16 13,395 The City of New York, New York, General Obligation Bonds, 8/07 at 101 A 14,162,132 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 A 41,712,895 Fiscal 1997 Series G, 6.000%, 10/15/26 15,000 New York City Municipal Water Finance Authority, Water and 6/06 at 101 AAA 15,462,600 Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 5,200 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101 A 5,516,056 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 AA- 6,708,450 Services Facilities Improvement Revenue Bonds, Series 1999D, 5.250%, 2/15/29 9,315 New York State Medical Care Facilities Finance Agency, 8/03 at 102 AAA 9,726,816 St. Luke's-Roosevelt Hospital Center FHA-Insured Mortgage Revenue Bonds, 1993 Series A, 5.600%, 8/15/13 7,500 Power Authority of the State of New York, Revenue Bonds, 11/10 at 100 Aa2 7,308,450 Series 2000A, 5.250%, 11/15/40 - ------------------------------------------------------------------------------------------------------------------------------------ North Carolina - 3.3% 2,600 City of Charlotte, North Carolina, Refunding Certificates of 12/03 at 102 AAA 2,585,726 Participation (Convention Facility Project), Series 1993C, 5.250%, 12/01/20 11,965 North Carolina Eastern Municipal Power Agency, Power System 9/03 at 102 1/2 BBB 11,818,907 Revenue Bonds, Series 1985-G, 5.750%, 12/01/16 11,610 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 102 BBB 11,671,533 Revenue Bonds, Series 1993-D, 5.875%, 1/01/14 1,000 North Carolina Eastern Municipal Power Agency, Power System 1/07 at 102 AAA 1,052,190 Revenue Bonds, Refunding Series 1996A, 5.700%, 1/01/13 14,060 North Carolina Municipal Power Agency Number 1, Catawba 1/03 at 100 BBB+ 14,019,226 Electric Revenue Bonds, Series 1992, 5.750%, 1/01/15 12,290 North Carolina Municipal Power Agency Number 1, Catawba 7/01 at 100 BBB+ 12,234,203 Electric Revenue Bonds, Series 1985B, 6.000%, 1/01/20 Nuveen Municipal Value Fund, Inc. (NUV) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ North Carolina (continued) $ 10,000 North Carolina Municipal Power Agency Number 1, Catawba 1/10 at 101 BBB+ $ 10,369,200 Electric Revenue Bonds, Series 1999B, 6.500%, 1/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ Oklahoma - 0.1% 2,350 Midwest City Memorial Hospital Authority, Midwest City, 4/02 at 102 BBB+*** 2,481,436 Oklahoma, Hospital Revenue Bonds, Series 1992, 7.375%, 4/01/22 (Pre-refunded to 4/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania - 3.5% 5,955 Pennsylvania Convention Center Authority, Refunding Revenue 9/04 at 102 BBB 6,223,332 Bonds, 1994 Series A, 6.750%, 9/01/19 11,175 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/03 at 102 AA+ 11,354,918 Revenue Bonds, Series 1993-36, 5.450%, 10/01/14 9,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/06 at 102 AA+ 9,311,670 Revenue Bonds, Series 1996-51, 6.375%, 4/01/28 (Alternative Minimum Tax) 18,850 Pennsylvania Intergovernmental Cooperation Authority, Special 6/03 at 100 AAA 17,826,068 Tax Revenue Refunding Bonds (City of Philadelphia Funding Program), Series of 1993A, 5.000%, 6/15/22 4,500 Pennsylvania Higher Educational Facilities Authority, The Trustees 7/08 at 100 AA 3,887,145 of the University of Pennsylvania, Revenue Bonds, Series 1998, 4.500%, 7/15/21 19,255 City of Philadelphia, Pennsylvania, Water and Wastewater 6/03 at 102 AAA 19,641,063 Revenue Bonds, Series 1993, 5.500%, 6/15/14 - ------------------------------------------------------------------------------------------------------------------------------------ Puerto Rico - 0.8% 10,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101 AAA 10,249,800 Bonds, 2000 Series A, 5.500%, 10/01/40 5,500 Puerto Rico Industrial, Tourist, Educational, Medical, and 6/10 at 101 Baa2 5,767,520 Environmental Control Facilities Financing Authority, Cogeneration Facility Revenue Bonds, 2000 Series A, 6.625%, 6/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ Rhode Island - 0.3% 6,250 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA 6,001,813 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 7/01 at 100 BBB- 10,941,320 Revenue Bonds, 1986 Refunding Series, 5.000%, 1/01/25 8,000 South Carolina Jobs and Economic Development Authority, 12/10 at 102 BBB 8,133,200 Hospital Improvement Revenue Bonds (Palmetto Health Alliance), Series 2000A, 7.375%, 12/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ Tennessee - 0.1% 2,125 Municipal Energy Acquisition Corporation, Tennessee, Gas No Opt. Call AAA 2,002,451 Revenue Bonds, Series 1999, 4.125%, 3/01/08 - ------------------------------------------------------------------------------------------------------------------------------------ Texas - 6.1% 11,990 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, 6/01 at 102 BBB- 12,252,101 Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax) 12,525 City of Austin, Texas, Combined Utility Systems Revenue Bonds, 5/01 at 100 AAA 12,548,923 Series 1986A, 8.000%, 11/15/16 (Pre-refunded to 5/15/01) 24,265 City of Austin, Texas, Combined Utility Systems Revenue No Opt. Call AAA 35,248,552 Refunding Bonds, Series 1992A, 12.500%, 11/15/07 2,565 Corpus Christi, Texas, Housing Finance Corporation, Single Family 7/01 at 103 AAA 2,665,240 Mortgage Senior Revenue Refunding Bonds, Series 1991A, 7.700%, 7/01/11 10,000 Harris County, Texas, Toll Road Unlimited Tax and Subordinate 8/01 at 102 AA+ 10,284,600 Lien Revenue Refunding Bonds, Series 1991, 6.750%, 8/01/14 10,045 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100 AAA 10,440,070 Bonds, Series 2000A, 5.875%, 7/01/16 (Alternative Minimum Tax) Irving Independent School District, Unlimited Tax School Building Bonds, Series 1997: 5,685 0.000%, 2/15/10 No Opt. Call AAA 3,708,098 3,470 0.000%, 2/15/11 No Opt. Call AAA 2,135,473 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Texas (continued) $ 22,060 Leander Independent School District, Williamson and Travis 8/09 at 31 15/32 AAA $ 4,252,506 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, 10/01 at 101 AAA 14,752,238 Collateralized Revenue Refunding Bonds, Series 1995 (Houston Lighting and Power Company Project), 5.800%, 10/15/15 4,000 Industrial Development Corporation of Port of Corpus Christi, 4/08 at 102 BBB- 3,687,040 Texas, Revenue Refunding Bonds (Valero Refining and Marketing Company Project), 5.400%, 4/01/18 5,750 Weslaco Health Facilities Development Corporation, Hospital 1/04 at 102 AAA 5,626,088 Revenue Bonds, Series 1994 (Knapp Medical Center Project), 5.375%, 6/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ Utah - 3.1% 12,000 Intermountain Power Agency, Utah, Power Revenue Refunding 7/06 at 102 A+ 11,252,520 Bonds, 1996 Series D, 5.000%, 7/01/21 Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds, 1993 Series A: 16,080 5.500%, 7/01/20 7/03 at 102 A+*** 16,164,742 21,045 5.500%, 7/01/20 7/03 at 102 A+ 20,956,821 7,560 5.000%, 7/01/23 7/03 at 100 A+ 7,046,525 4,905 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 101 1/2 AAA 4,629,584 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 AA+ 3,286,049 Bonds, Series 1997E, 5.600%, 11/01/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ Washington - 9.8% 215 Washington Public Power Supply System, Nuclear Project No. 1 No Opt. Call AAA 218,913 Revenue Bonds, Series D, 14.375%, 7/01/01 9,450 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 AAA 9,615,470 Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1993C: 27,000 5.400%, 7/01/12 7/03 at 102 Aa1 27,491,400 2,970 5.375%, 7/01/15 7/03 at 102 Aa1 2,985,177 11,390 Washington Public Power Supply System, Nuclear Project No. 2 7/03 at 102 Aa1 11,748,102 Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/12 17,700 Washington Public Power Supply System, Nuclear Project No. 2 7/04 at 102 Aa1 18,253,833 Refunding Revenue Bonds, Series 1994A, 5.375%, 7/01/10 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993B: 11,510 5.625%, 7/01/12 7/03 at 102 Aa1 11,813,864 9,000 5.600%, 7/01/17 7/03 at 102 AAA 9,106,830 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993C: 81,000 5.400%, 7/01/12 7/03 at 102 Aa1 82,474,199 14,850 5.375%, 7/01/15 7/03 at 102 Aa1 14,925,883 - ------------------------------------------------------------------------------------------------------------------------------------ West Virginia - 0.4% 7,180 West Virginia Housing Development Fund, Housing Finance Bonds, 11/06 at 102 AAA 7,418,303 Series 1997-A, 6.050%, 5/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ Wisconsin - 2.1% 20,385 The Wisconsin Public Power Incorporated System, Power Supply 7/03 at 102 AAA 19,924,706 System Revenue Bonds, Series 1993A, 5.250%, 7/01/21 1,120 Wisconsin Housing and Economic Development Authority, 3/04 at 102 AA 1,149,970 Homeownership Revenue Bonds, 1994 Series B, 6.750%, 9/01/25 (Alternative Minimum Tax) 17,020 Wisconsin Health and Educational Facilities Authority, Revenue 8/03 at 102 AAA 17,034,466 Bonds (Sisters of the Sorrowful Mother - Ministry Corporation), Series 1993D, 5.500%, 8/15/19 Nuveen Municipal Value Fund, Inc. (NUV) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Wisconsin (continued) $ 1,750 Wisconsin Health and Educational Facilities Authority, Revenue 8/03 at 102 AAA $ 1,775,042 Bonds (Sisters of the Sorrowful Mother - Ministry Corporation), Series 1993C, 5.400%, 8/15/13 - ------------------------------------------------------------------------------------------------------------------------------------ $ 2,071,684 Total Investments (cost $1,810,048,192) - 98.4% 1,897,346,678 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.6% 31,361,013 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $1,928,707,691 ====================================================================================================================
* 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, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ California - 5.9% $ 5,530 Adelanto School District, San Bernardino County, California, No Opt. Call AAA $ 1,679,185 General Obligation Bonds (Bank Qualified), 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 647,720 2,070 0.000%, 8/01/22 No Opt. Call AAA 631,474 2,120 0.000%, 8/01/23 No Opt. Call AAA 610,284 3,000 California Pollution Control Financing Authority, Solid Waste 7/07 at 102 N/R 300,000 Disposal Revenue Bonds (CanFibre of Riverside Project), Tax-Exempt Series 1997A, 9.000%, 7/01/19 (Alternative Minimum Tax)+ 1,150 Foothill/Eastern Transportation Corridor Agency, California, 1/07 at 100 AAA 1,271,394 Toll Road Revenue Bonds, Series 1995A, 6.000%, 1/01/34 (Pre-refunded to 1/01/07) - ------------------------------------------------------------------------------------------------------------------------------------ Colorado - 3.4% 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 Aaa 440,664 1,590 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 1,685,177 780 City and County of Denver, Colorado, Airport System Revenue 11/01 at 102 A 812,807 Bonds, Series 1991A, 8.750%, 11/15/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ Connecticut - 6.6% 1,480 Capitol Region Education Council, Connecticut, Revenue Bonds, 10/05 at 102 BBB 1,564,567 6.750%, 10/15/15 3,000 State of Connecticut Health and Educational Facilities Authority, 7/06 at 102 BBB- 3,051,960 Revenue Bonds, University of New Haven Issue, Series D, 6.700%, 7/01/26 1,000 Housing Authority of the City of Willimantic, Multifamily Housing 10/05 at 105 AAA 1,104,470 Revenue Bonds, Series 1995A (GNMA Collateralized Mortgage Loan - Village Heights Apartments Project), 8.000%, 10/20/30 - ------------------------------------------------------------------------------------------------------------------------------------ Florida - 5.1% 1,670 Dade County, Florida, Industrial Development Authority, Industrial 6/05 at 102 N/R 1,716,626 Development Revenue Bonds, Series 1995 (Miami Cerebral Palsy Residential Services, Inc. Project), 8.000%, 6/01/22 2,000 Martin County, Florida, Industrial Development Authority, Industrial 12/04 at 102 BBB- 2,078,560 Development Revenue Bonds, Series 1994A (Indiantown Cogeneration, L.P. Project), 7.875%, 12/15/25 (Alternative Minimum Tax) 600 Martin County, Florida, Industrial Development Authority, Industrial 12/04 at 102 BBB- 628,380 Development Revenue Refunding Bonds, Series B (Indiantown Cogeneration Project), 8.050%, 12/15/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ Illinois - 12.4% 4,275 City of Chicago, Tax Increment Allocation Bonds (Irving/Cicero 1/09 at 100 N/R 4,160,943 Redevelopment Project), Series 1998, 7.000%, 1/01/14 1,300 Illinois Health Facilities Authority, McHenry, Illinois, Revenue 9/03 at 102 A- 1,395,745 Bonds (Northern Illinois Medical Center Project), Series 1993, 6.000%, 9/01/19 2,000 Illinois Health Facilities Authority, Revenue Refunding Bonds 10/03 at 102 A- 2,109,800 (Illinois Masonic Medical Center), Series 1993, 5.500%, 10/01/19 1,145 Illinois Housing Development Authority, Homeowner Mortgage 8/04 at 102 AA 1,168,953 Revenue Bonds, 1994 Series A-2, 6.700%, 8/01/25 (Alternative Minimum Tax) 1,960 Joliet Regional Port District Airport Facilities, Revenue Bonds 7/07 at 103 N/R 1,860,412 (Lewis University Airport), Series 1997A, 7.250%, 7/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ Indiana - 9.7% 9,000 Whitley County, Indiana, Solid Waste and Sewage Disposal 11/10 at 102 N/R 8,381,970 Revenue Bonds (Steel Dynamics Inc., Project), Series 1998, 7.250%, 11/01/18 (Alternative Minimum Tax) Nuveen Municipal Income Fund, Inc. (NMI) (continued) Portfolio of Investments April 30, 2001 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Louisiana - 3.4% Louisiana Public Facilities Authority, Extended Care Facilities Revenue Bonds (Comm-Care Corporation Project), Series 1994: $ 405 11.000%, 2/01/04 No Opt. Call BBB $ 435,209 2,000 11.000%, 2/01/14 No Opt. Call BBB 2,515,060 - ------------------------------------------------------------------------------------------------------------------------------------ Maryland - 2.4% 2,000 Anne Arundel County, Maryland, Multifamily Housing Revenue No Opt. Call BBB- 2,082,920 Bonds (Twin Coves Apartments Project), Series 1994, 7.450%, 12/01/24 (Alternative Minimum Tax) (Mandatory put 12/01/03) - ------------------------------------------------------------------------------------------------------------------------------------ Massachusetts - 3.6% 3,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,103,080 Revenue Bonds (SEMASS Project), Series 1991A, 9.000%, 7/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ Minnesota - 3.3% 2,795 Minnesota Housing Finance Agency, Single Family Mortgage 1/07 at 102 AA+ 2,894,083 Bonds, 1995 Series M, 5.875%, 1/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ Mississippi - 4.7% 4,500 Mississippi Business Finance Corporation, Pollution Control Revenue 10/03 at 102 BBB- 4,089,870 Refunding Bonds (System Energy Resources, Inc. Project), Series 1998, 5.875%, 4/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ New Hampshire - 0.8% 700 New Hampshire Higher Educational and Health Facilities Authority, 1/07 at 102 BBB- 650,846 Revenue Bonds, Series 1997 (New Hampshire College), 6.375%, 1/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ New York - 21.0% 1,500 County of Cattaraugus, New York, Industrial Development Agency, No Opt. Call N/R 1,454,130 Tax-Exempt Industrial Development Revenue Bonds, Series 1999A (Laidlaw Energy and Environmental, Inc. Project), 8.500%, 7/01/21 (Alternative Minimum Tax) 5,000 Erie County, New York, Industrial Development Agency, Solid Waste 12/10 at 103 N/R 2,500,000 Disposal Facility Revenue Bonds (1998 CanFibre of Lackawanna Project), 8.875%, 12/01/13 (Alternative Minimum Tax) The City of New York, New York, General Obligation Bonds, Fiscal 1996 Series F: 500 5.750%, 2/01/15 2/06 at 101 1/2 A 521,660 1,400 5.750%, 2/01/19 2/06 at 101 1/2 A 1,445,262 1,000 The City of New York, New York, General Obligation Bonds, 2/06 at 101 1/2 A 1,047,270 Fiscal 1996 Series G, 5.750%, 2/01/14 1,250 The City of New York, New York, General Obligation Bonds, 11/06 at 101 1/2 A 1,339,225 Fiscal 1997 Series D, 5.875%, 11/01/11 2,500 New York State Medical Care Facilities Finance Agency, Brookdale 2/05 at 102 AAA 2,811,275 Hospital Medical Center Secured Hospital Revenue Bonds, 1995 Series A, 6.800%, 8/15/12 (Pre-refunded to 2/15/05) 2,630 UFA Development Corporation, Utica, New York, FHA-Insured 1/07 at 102 Aa2 2,618,533 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 AAA 4,322,278 Facility Revenue Bonds, Series 2000A (Soldiers and Sailors Memorial Hospital - FHA-Insured Mortgage), 6.000%, 2/01/41 - ------------------------------------------------------------------------------------------------------------------------------------ Ohio - 1.2% 1,000 County of Franklin, Ohio, Hospital Facilities Mortgage Revenue 7/03 at 103 AAA 1,038,690 Bonds, 1991 Series A (Ohio Presbyterian Retirement Services), 8.750%, 7/01/21 (Pre-refunded to 7/01/03) - ------------------------------------------------------------------------------------------------------------------------------------ Oklahoma - 0.8% 685 Oklahoma County Industrial Authority, Revenue Bonds (Oklahoma 7/01 at 100 N/R 687,165 Blood Institute Project), Series 1988, 9.000%, 7/01/03 - ------------------------------------------------------------------------------------------------------------------------------------ Oregon - 1.2% 1,000 State of Oregon, Housing and Community Services Department, 7/07 at 101 1/2 Aa2 1,006,020 Mortgage Revenue Bonds, 1997 Series H (Single Family Mortgage Program), 5.650%, 7/01/28 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania - 5.3% 1,800 Allegheny County, Pennsylvania, Hospital Development Authority, 11/10 at 102 B+ 1,780,470 Health System Revenue Bonds, Series 2000B (West Penn Allegheny Health System), 9.250%, 11/15/30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania (continued) $ 1,750 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- $ 1,787,380 Resource Recovery Revenue Refunding Bonds, 2000 Series (Panther Creek Partners Project), 6.650%, 5/01/10 (Alternative Minimum Tax) 1,000 Pennsylvania Convention Center Authority, Refunding Revenue 9/04 at 102 BBB 1,045,060 Bonds, 1994 Series A, 6.750%, 9/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ Texas - 6.1% 1,055 Alliance Airport Authority, Inc., Special Facilities Revenue 6/01 at 102 BBB- 1,078,062 Bonds, Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29 (Alternative Minimum Tax) 645 Hidalgo County Housing Finance Corporation, Texas, Single Family 4/04 at 102 Aaa 665,724 Mortgage Revenue Bonds, Series 1994A (GNMA and FNMA Collateralized), 7.000%, 10/01/27 (Alternative Minimum Tax) 3,000 Laredo Independent School District, Webb County, Texas, 8/09 at 100 AAA 2,896,260 Unlimited Tax School Building Bonds, Series 1999, 5.250%, 8/01/24 West Independent School District, McLennan and Hill Counties, Texas, Unlimited Tax School Building and Refunding Bonds, Series 1998: 1,000 0.000%, 8/15/25 8/13 at 51 27/32 AAA 231,660 1,000 0.000%, 8/15/26 8/13 at 49 3/32 AAA 217,590 1,000 0.000%, 8/15/27 8/13 at 46 15/32 AAA 204,701 - ------------------------------------------------------------------------------------------------------------------------------------ Washington - 1.6% 1,240 Housing Authority of the City of Bellingham, Washington, Housing 11/04 at 100 A1*** 1,370,325 Revenue Bonds, Series 1994 (Cascade Meadows Project), 7.100%, 11/01/23 (Pre-refunded to 11/01/04) - ------------------------------------------------------------------------------------------------------------------------------------ $ 99,625 Total Investments (cost $88,601,677) - 98.5% 85,140,899 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 1,275,986 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 86,416,885 ====================================================================================================================
* 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. + In November 2000, CanFibre Riverside filed for bankruptcy protection. The bonds have continued to pay interest payments by drawing on a debt service reserve. Nuveen is working closely with the project managers to develop a remedy that we believe will best serve the interest of shareholders. N/R Investment is not rated. See accompanying notes to financial statements. Statement of Net Assets April 30, 2001 (Unaudited)
MUNICIPAL VALUE MUNICIPAL INCOME (NUV) (NMI) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments in municipal securities, at market value $1,897,346,678 $85,140,899 Cash 5,382,292 -- Receivables: Interest 35,110,920 2,036,331 Investments sold 1,030,000 -- Other assets 124,411 17,223 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 1,938,994,301 87,194,453 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft -- 209,254 Accrued expenses: Management fees 886,041 46,428 Other 1,114,892 51,826 Dividends payable 8,285,677 470,060 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 10,286,610 777,568 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets $1,928,707,691 $86,416,885 ==================================================================================================================================== Shares outstanding 194,959,520 8,038,537 ==================================================================================================================================== Net asset value per share outstanding (net assets divided by shares outstanding) $ 9.89 $ 10.75 ====================================================================================================================================
Statement of Operations Six Months Ended April 30, 2001 (Unaudited)
MUNICIPAL VALUE MUNICIPAL INCOME (NUV) (NMI) - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $56,196,313 $3,140,026 - ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 5,341,317 285,539 Shareholders' servicing agent fees and expenses 142,850 13,325 Custodian's fees and expenses 230,334 21,591 Directors' fees and expenses 8,170 400 Professional fees 10,632 6,665 Shareholders' reports - printing and mailing expenses 183,866 8,169 Stock exchange listing fees 81,055 8,114 Investor relations expense 168,885 9,255 Other expenses 39,892 4,950 - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit 6,207,001 358,008 Custodian fee credit (90,668) (4,742) - ----------------------------------------------------------------------------------------------------------------------------------- Net expenses 6,116,333 353,266 - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income 50,079,980 2,786,760 - ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions (62,072) 10,278 Change in net unrealized appreciation (depreciation) of investments 29,038,602 (2,104,639) - ----------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) from investments 28,976,530 (2,094,361) - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $79,056,510 $ 692,399 ===================================================================================================================================
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 4/30/01 10/31/00 4/30/01 10/31/00 - ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 50,079,980 $ 101,169,378 $ 2,786,760 $ 5,586,898 Net realized gain (loss) from investment transactions (62,072) 4,597,296 10,278 (476,451) Change in net unrealized appreciation (depreciation) of investments 29,038,602 50,413,638 (2,104,639) (2,382,682) - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 79,056,510 156,180,312 692,399 2,727,765 - ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From undistributed net investment income (50,203,410) (99,546,449) (2,817,510) (5,579,745) From accumulated net realized gains from investment transactions (4,112,336) -- -- (461,215) - ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (54,315,746) (99,546,449) (2,817,510) (6,040,960) - ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- 327,745 404,802 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 24,740,764 56,633,863 (1,797,366) (2,908,393) Net assets at the beginning of period 1,903,966,927 1,847,333,064 88,214,251 91,122,644 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets at the end of period $1,928,707,691 $1,903,966,927 $86,416,885 $88,214,251 =================================================================================================================================== Balance of undistributed net investment income at the end of period $ 1,985,811 $ 2,109,241 $ 163,298 $ 194,048 ===================================================================================================================================
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. 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, 2001, 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. 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. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend and payment is made or reinvestment is credited to shareholder accounts on the first business day after month-end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders of tax-exempt net investment income, net realized capital gains and/or market discount are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. Accordingly, temporary over-distributions as a result of these differences may occur and will be classified as either distributions in excess of net investment income, distributions in excess of net realized gains and/or distributions in excess of net ordinary taxable income from investment transactions, where applicable. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Derivative Financial Instruments The Funds may invest in 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, 2001. 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. Audit Guide In November 2000, the American Institute of Certified Public Accountants (AICPA) issued a revised version of the AICPA Audit and Accounting Guide for Investment Companies (the "Guide"). The Guide is effective for annual financial statements issued for fiscal years beginning after December 15, 2000. It is not anticipated that the adoption of the Guide will have a significant effect on the financial statements. 2. FUND SHARES Transactions in shares were as follows:
MUNICIPAL VALUE (NUV) MUNICIPAL INCOME (NMI) ---------------------------- ---------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 4/30/01 10/31/00 4/30/01 10/31/00 - ---------------------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions -- -- 28,439 35,420 ================================================================================================================
3. DISTRIBUTIONS TO SHAREHOLDERS The Funds declared dividend distributions from their tax-exempt net investment income which were paid on June 1, 2001, to shareholders of record on May 15, 2001, as follows:
MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ---------------------------------------------------------------------------------------------------------------- Dividend per share $.0425 $.0585 ================================================================================================================
4. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities and short-term municipal securities for the six months ended April 30, 2001, were as follows:
MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ---------------------------------------------------------------------------------------------------------------- Purchases: Long-term municipal securities $117,981,908 $5,821,088 Short-term municipal securities 10,500,000 1,600,000 Sales and maturities: Long-term municipal securities 141,641,287 616,941 Short-term municipal securities 10,500,000 5,600,000 ================================================================================================================
At April 30, 2001, the identified cost of investments owned for federal income tax purposes were as follows:
MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ---------------------------------------------------------------------------------------------------------------- $1,810,194,748 $88,601,677 - ----------------------------------------------------------------------------------------------------------------
At October 31, 2000, the Funds' last fiscal year end, Municipal Income (NMI) had unused capital loss carryforwards of $476,451 available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire in the year 2008. Notes to Financial Statements (Unaudited) (continued) 5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments for federal income tax purposes at April 30, 2001, were as follows:
MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ---------------------------------------------------------------------------------------------------------------- Gross unrealized: appreciation $104,126,745 $ 3,165,918 depreciation (16,974,815) (6,626,696) - ---------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) $ 87,151,930 $(3,460,778) ================================================================================================================
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 fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Directors who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser. 7. COMPOSITION OF NET ASSETS At April 30, 2001, net assets consisted of:
MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ---------------------------------------------------------------------------------------------------------------- Shares, $.01 par value per share $ 1,949,595 $ 80,385 Paid-in surplus 1,837,697,688 90,100,153 Balance of undistributed net investment income 1,985,811 163,298 Accumulated net realized gain (loss) from investment transactions (223,889) (466,173) Net unrealized appreciation (depreciation) of investments 87,298,486 (3,460,778) - ---------------------------------------------------------------------------------------------------------------- Net assets $1,928,707,691 $ 86,416,885 ================================================================================================================ Authorized shares 350,000,000 200,000,000 ================================================================================================================
8. INVESTMENT COMPOSITION At April 30, 2001, the revenue sources by municipal purpose, expressed as a percent of long-term investments, were as follows:
MUNICIPAL MUNICIPAL VALUE (NUV) INCOME (NMI) - ---------------------------------------------------------------------------------------------------------------- Basic Materials --% 10% Education and Civic Organizations 2 4 Healthcare 16 12 Housing/Multifamily 3 4 Housing/Single Family 4 7 Long-Term Care 1 9 Tax Obligation/General 6 13 Tax Obligation/Limited 11 8 Transportation 12 6 U.S. Guaranteed 8 8 Utilities 30 19 Water and Sewer 7 -- - ---------------------------------------------------------------------------------------------------------------- 100% 100% ================================================================================================================
Certain long-term investments owned by the Funds are either covered by insurance issued by several private insurers or are backed by an escrow or trust containing U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest in the event of default (37% for Municipal Value (NUV) and 12% 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 --------------------------------------- --------------------------------------- Net Realized/ Beginning Net Unrealized Net Net Asset Investment Investment Investment Capital Value Income Gain (Loss) Total Income Gains Total - ------------------------------------------------------------------------------------------------------------------------------------ Municipal Value (NUV) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2001(a) $ 9.77 $.26 $ .14 $ .40 $(.26) $(.02) $(.28) 2000 9.48 .52 .28 .80 (.51) -- (.51) 1999 10.37 .51 (.80) (.29) (.51) (.09) (.60) 1998 10.29 .53 .21 .74 (.53) (.13) (.66) 1997 10.18 .58 .22 .80 (.58) (.11) (.69) 1996 10.29 .61 (.03) .58 (.61) (.08) (.69) Municipal Income (NMI) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2001(a) 11.01 .35 (.26) .09 (.35) -- (.35) 2000 11.43 .70 (.36) .34 (.70) (.06) (.76) 1999 12.10 .70 (.61) .09 (.69) (.07) (.76) 1998 12.02 .71 .11 .82 (.71) (.03) (.74) 1997 11.96 .76 .11 .87 (.76) (.05) (.81) 1996 11.97 .77 (.02) .75 (.76) -- (.76) ==================================================================================================================================== Total Returns ---------------------------- Ending Net Asset Ending Based on Based on Net Value Market Value Market Value+ Asset Value+ - ------------------------------------------------------------------------------------ Municipal Value (NUV) - ------------------------------------------------------------------------------------ Year Ended 10/31: 2001(a) $ 9.89 $ 9.0800 9.36% 4.09% 2000 9.77 8.5625 5.46 8.71 1999 9.48 8.6250 (7.50) (2.94) 1998 10.37 9.9375 10.55 7.49 1997 10.29 9.6250 10.39 8.18 1996 10.18 9.3750 3.10 5.84 Municipal Income (NMI) - ------------------------------------------------------------------------------------ Year Ended 10/31: 2001(a) 10.75 11.6000 6.26 .79 2000 11.01 11.2500 9.45 3.02 1999 11.43 11.0000 (5.77) .74 1998 12.10 12.4375 5.21 7.06 1997 12.02 12.5625 11.96 7.60 1996 11.96 12.0000 12.42 6.49 ==================================================================================== Ratios/Supplemental Data ---------------------------------------------------------------------------------------- Before Credit After Credit** ------------------------- ---------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Portfolio Net Assets to Average Average to Average Average Turnover (000) Net Assets Net Assets Net Assets Net Assets Rate - ---------------------------------------------------------------------------------------------------------------- Municipal Value (NUV) - ---------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001(a) $1,928,708 .65%* 5.20%* .64%* 5.21%* 6% 2000 1,903,967 .65 5.44 .64 5.44 17 1999 1,847,333 .65 5.09 .65 5.10 13 1998 2,022,282 .65 5.18 .65 5.18 19 1997 2,005,380 .68 5.71 .68 5.71 19 1996 1,984,627 .69 5.98 .69 5.98 18 Municipal Income (NMI) - ---------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2001(a) 86,417 .82* 6.33* .80* 6.34* 1 2000 88,214 .80 6.20 .77 6.23 6 1999 91,123 .82 5.88 .82 5.89 31 1998 95,756 .82 5.91 .82 5.91 23 1997 94,283 .83 6.39 .83 6.39 9 1996 93,249 .80 6.49 .80 6.49 10 ================================================================================================================
* 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, 2001. See accompanying notes to financial statements. Build Your Wealth Automatically NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic 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. sidebar: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. Fund Information BOARD OF DIRECTORS Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale FUND MANAGER Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN, TRANSFER AGENT AND SHAREHOLDER SERVICES J.P. Morgan Chase & Co. 4 New York Plaza New York, NY 10004-2413 (800) 257-8787 LEGAL COUNSEL Morgan, Lewis & Bockius LLP Washington, D.C. INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the six-month period ended April 30, 2001. 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. Invest well. Look ahead. LEAVE YOUR MARK.(SM) LOGO: NUVEEN Investments Nuveen Investments o 333 West Wacker Drive Chicago, IL 60606 o www.nuveen.com FSA-1-4-01 -----END PRIVACY-ENHANCED MESSAGE-----