UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05488
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Nuveen Municipal Income Fund, Inc.
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: October 31
------------------
Date of reporting period: April 30, 2007
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT April 30, 2007
Nuveen Investments
Municipal Closed-End Funds
NUVEEN MUNICIPAL
VALUE FUND, INC.
NUV
NUVEEN MUNICIPAL
INCOME FUND, INC.
NMI
Photo of: Woman and man at the beach.
Photo of: A child.
DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
Photo of: Woman
Photo of: Woman
Photo of: Man and child
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Logo: NUVEEN Investments
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the six-month period covered
by this report your Fund continued to provide you with attractive monthly
tax-free income. For more details about the management strategy and
performance of your Fund, please read the Portfolio Managers' Comments, the
Dividend and Share Price Information, and the Performance Overview sections
of this report.
For some time, I've used these letters to remind you that municipal bonds
can be an important building block in a well-balanced investment portfolio.
In addition to providing attractive tax-free monthly income, a municipal
bond investment like your Fund may help you achieve and benefit from
greater portfolio diversification. Portfolio diversification is a
recognized way to try to reduce some of the risk that comes with investing.
For more information about this important investment strategy, I encourage
you to contact your personal financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the internet. The inside
front cover of this report contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in
the months and years ahead. At Nuveen Investments, our mission continues to
be to assist you and your financial advisor by offering investment services
and products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 15, 2007
Nuveen Investments Municipal Closed-End Funds
NUV and NMI
Portfolio Managers'
COMMENTS
Portfolio managers Tom Spalding and John Miller review key investment strategies
and the six-month performance of NUV and NMI. With 30 years of investment
experience at Nuveen, Tom has managed NUV since its inception in 1987. John, who
has 14 years of municipal market experience, including 11 years with Nuveen,
assumed portfolio management responsibility for NMI in 2001.
WHAT KEY STRATEGIES WERE USED TO MANAGE NUV AND NMI DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2007?
During this six-month period, we continued to see a further flattening of the
municipal bond yield curve. In this environment, where the slope of the yield
curve remained a dominant market factor, we continued to emphasize a disciplined
approach to duration1 management and yield curve positioning. As part of this
approach, our purchases for the Funds' portfolios focused mainly on attractively
priced bonds with maturities of 20 years and longer in NUV and 25 to 30 years in
NMI. We believed that bonds in this range of the curve generally offered more
attractive yields, better value, and reward opportunities more commensurate with
their risk levels. Investing further out on the yield curve also helped to
improve the Funds' overall call protection profile. Our duration management
strategies during this period also included the use of inverse floating rate
trusts,2 a type of derivative financial instrument.
We also continued to put emphasis on individual credit selection, using a
long-term relative value approach. During this period, the municipal market saw
steady new issuance as well as a number of major advance refundings3 and debt
restructurings, which provided us with an increased number of bonds from which
to choose. For the six months ended April 30, 2007, municipal issuance
nationwide totaled $223.7 billion, up 32% compared with the six-month period
ended April 30, 2006. During the first four months of 2007 supply increased 37%
over that of the first four months of 2006--to $135.4 billion--primarily due to
a 71% increase in refundings during this period.
Much of the new supply was highly rated and/or insured, and both Funds increased
their allocations to credits rated AAA and AA over this period. We also
continued to work to maintain the Funds' weightings of lower credit quality
bonds because of their strong performance and support for the Funds' income
streams. However, as credit spreads continued to tighten, we generally found
fewer attractively structured lower-rated credit opportunities in the market.
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
2 An inverse floating rate trust is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market Association
Index or BMA). Inverse floaters, including those inverse floating rate
securities in which the Funds invested during the six-month period, are
further defined within the "Notes to Financial Statements" and "Glossary of
Terms Used in This Report" sections of this shareholder report.
3 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
4
In NUV, most of the cash we redeployed during this period came from called
holdings, which we used to enhance the Fund's diversification by investing in a
variety of essential services sectors such as water and sewer and utilities. We
also continued to keep NUV well diversified geographically, looking to states
with stronger issuance, including California, Texas, New York, Florida and
Illinois for many of our additions to the Fund.
In NMI, we selectively sold holdings to generate cash in order to purchase bonds
that we believed offered more attractive credit quality, credit spreads, and
relative value. We also sold some holdings with shorter maturities and
redeployed the proceeds out further on the yield curve to improve NMI's exposure
to the long end of the curve. Among the areas of the market where we found
opportunities to add bonds with longer durations were the water and sewer sector
in Missouri and the health care sector in California. In general, our purchases
for this Fund focused on issuance in specialty states, which have relatively
higher income tax levels. Municipal bonds issued in these states are generally
in great demand by in-state individual investors, which helps to support their
value. These bonds also provide additional liquidity, making it easier for us to
execute trades as part of implementing our strategies.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 4/30/07
CUMULATIVE ANNUALIZED
---------- ---------------------------------------------
6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NUV 1.87% 6.78% 6.03% 5.97%
--------------------------------------------------------------------------------
NMI 2.01% 6.61% 5.75% 5.09%
--------------------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index4 1.59% 5.78% 5.16% 5.81%
--------------------------------------------------------------------------------
Lipper General and
Insured Unleveraged
Municipal Debt
Funds Average5 1.75% 6.69% 5.36% 5.34%
--------------------------------------------------------------------------------
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
4 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman Brothers Index do not reflect any expenses.
5 The Lipper General and Insured Unleveraged Municipal Debt Funds Average is
calculated using the returns of all closed-end funds in this category for
each period as follows: 6 months, 8; 1 year, 8; 5 years, 8; and 10 years,
8. Fund and Lipper returns assume reinvestment of dividends.
5
For the six months ended April 30, 2007, the cumulative returns on net asset
value (NAV) for both NUV and NMI exceeded the return on the Lehman Brothers
Municipal Bond Index. Both Funds also outperformed the average return for their
Lipper peer group for this period.
Factors that influenced the Funds' returns during this period included duration,
individual security selection, exposure to lower-rated credits, and advance
refunding activity.
As the municipal bond yield curve continued to flatten over the course of this
period, municipal bonds with maturities of 20 years and longer, as measured by
the Lehman Brothers Municipal Bond Index, performed best, generally outpacing
municipal bonds with shorter maturities. As mentioned earlier, one of our
strategies during this period focused on adding longer bonds to our portfolios.
Overall, this purchase activity and our duration management strategies helped to
extend the Funds' durations. However, durations of both NUV and NMI continued to
be short of our target and this factor slightly hampered the Funds'
performances.
With bonds rated BBB or lower and non-rated bonds generally outperforming other
credit quality sectors during this period, both of these Funds benefited from
their weightings in lower-quality credits. The outperformance of these credit
sectors was largely the result of investor demand for the higher yields
typically associated with lower-rated bonds, which drove up their value. NMI,
which can invest up to 25% of its portfolio in below investment-grade quality
bonds, had heavier exposure to subinvestment-grade (bonds rated BB or lower) and
non-rated bonds than NUV, which was especially helpful during this period. Among
the lower-rated holdings making contributions to the Funds' returns were BBB
rated bonds backed by the 1998 master tobacco settlement agreement, which
comprised approximately 4% of the portfolios of these two Funds as of April 30,
2007.
We also continued to see positive contributions from advance refunding activity,
which benefited the Funds through price appreciation and enhanced credit
quality. In NUV, some of the more significant advance refundings included bonds
issued by California's Golden State Tobacco Securitization Corporation and New
Jersey's Tobacco Settlement Financing Corporation and by the Chicago (Illinois)
Charter School Foundation. NMI also held bonds that were pre-refunded by Golden
State Tobacco and Chicago Charter School Foundation.
At the same time, holdings of older, previously pre-refunded bonds tended to
underperform the general municipal market during this period, due primarily to
their shorter effective maturities and higher credit quality.
6
Dividend and Share Price
INFORMATION
The dividends of NUV and NMI remained stable throughout the six-month reporting
period ended April 30, 2007.
Due to normal portfolio activity, shareholders of these two Funds also received
capital gains and/or net ordinary income distributions at the end of December
2006 as follows:
SHORT-TERM CAPITAL GAINS
LONG-TERM CAPITAL GAINS AND/OR ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NUV $0.0273 $0.0007
--------------------------------------------------------------------------------
NMI -- $0.0078
--------------------------------------------------------------------------------
Both NUV and NMI seek to pay stable dividends at rates that reflect each Fund's
past results and projected future performance. During certain periods, each Fund
may pay dividends at a rate that may be more or less than the amount of net
investment income actually earned by the Fund during the period. If a Fund has
cumulatively earned more than it has paid in dividends, it holds the excess in
reserve as undistributed net investment income (UNII) as part of the Fund's NAV.
Conversely, if a Fund has cumulatively paid dividends in excess of its earnings,
the excess constitutes negative UNII that is likewise reflected in the Fund's
NAV. Each Fund will, over time, pay all of its net investment income as
dividends to shareholders. As of April 30, 2007, NUV and NMI had positive UNII
balances for both financial statement and, based on our best estimates, for tax
purposes.
As of April 30, 2007, the Funds' share prices were trading at discounts to their
NAVs as shown in the accompanying chart:
4/30/07 6-MONTH
DISCOUNT AVERAGE DISCOUNT
--------------------------------------------------------------------------------
NUV -1.16% -0.76%
--------------------------------------------------------------------------------
NMI -1.18% -1.77%
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7
Nuveen Municipal Value Fund, Inc.
NUV
Performance
OVERVIEW As of April 30, 2007
Pie Chart:
Credit Quality
(as a % of total investments)
AAA/U.S. Guaranteed 64%
AA 13%
A 6%
BBB 10%
BB or Lower 6%
N/R 1%
Bar Chart:
2006-2007 Monthly Tax-Free Dividends Per Share2
May 0.039
Jun 0.039
Jul 0.039
Aug 0.039
Sep 0.039
Oct 0.039
Nov 0.039
Dec 0.039
Jan 0.039
Feb 0.039
Mar 0.039
Apr 0.039
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/01/06 9.66
9.49
9.51
9.51
9.54
9.65
9.56
9.5
9.49
9.55
9.56
9.57
9.58
9.64
9.68
9.66
9.79
9.82
9.91
9.94
9.88
9.95
10.11
10.07
10.01
10.04
10.13
10.2
10.2
10.23
10.36
10.47
10.32
10.18
10.16
10.23
10.23
10.14
10.1301
10.28
10.33
10.32
10.22
10.21
10.3
10.45
10.34
10.32
10.35
10.38
10.28
10.22
4/30/07 10.2
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing the Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2006 of $0.028 per share.
FUND SNAPSHOT
------------------------------------
Share Price $10.20
------------------------------------
Net Asset Value $10.32
------------------------------------
Premium/(Discount) to NAV -1.16%
------------------------------------
Market Yield 4.59%
------------------------------------
Taxable-Equivalent Yield1 6.38%
------------------------------------
Net Assets ($000) $2,012,041
------------------------------------
Average Effective Maturity
on Securities (Years) 16.46
------------------------------------
Modified Duration 5.42
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/17/87)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 2.97% 1.87%
------------------------------------
1-Year 11.95% 6.78%
------------------------------------
5-Year 7.51% 6.03%
------------------------------------
10-Year 6.90% 5.97%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
New York 14.7%
------------------------------------
Illinois 11.1%
------------------------------------
California 10.2%
------------------------------------
New Jersey 5.7%
------------------------------------
Texas 5.5%
------------------------------------
Michigan 4.5%
------------------------------------
Indiana 3.9%
------------------------------------
Massachusetts 3.7%
------------------------------------
Colorado 3.5%
------------------------------------
Florida 3.0%
------------------------------------
South Carolina 2.7%
------------------------------------
Missouri 2.7%
------------------------------------
Wisconsin 2.6%
------------------------------------
Nevada 2.5%
------------------------------------
Washington 2.5%
------------------------------------
District of Columbia 2.3%
------------------------------------
Louisiana 2.0%
------------------------------------
Pennsylvania 1.7%
------------------------------------
Virginia 1.4%
------------------------------------
Other 13.8%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 27.8%
------------------------------------
Healthcare 16.5%
------------------------------------
Tax Obligation/Limited 14.9%
------------------------------------
Transportation 11.8%
------------------------------------
Tax Obligation/General 8.6%
------------------------------------
Utilities 6.9%
------------------------------------
Other 13.5%
------------------------------------
8
Nuveen Municipal Income Fund, Inc.
NMI
Performance
OVERVIEW As of April 30, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 37%
AA 5%
A 15%
BBB 27%
BB or Lower 8%
N/R 8%
Bar Chart:
2006-2007 Monthly Tax-Free Dividends Per Share2
May 0.042
Jun 0.042
Jul 0.042
Aug 0.042
Sep 0.042
Oct 0.042
Nov 0.042
Dec 0.042
Jan 0.042
Feb 0.042
Mar 0.042
Apr 0.042
Line Chart:
SHARE PRICE PERFORMANCE
5/01/06 10.21
10.23
9.91
10.03
10.54
10.51
10.31
10.23
10.14
10.34
10.41
10.32
10.5
10.33
10.25
10.27
10.3
10.35
10.36
10.29
10.28
10.35
10.48
10.47
10.5
10.5
10.47
10.35
10.46
10.48
10.54
10.74
11.02
10.77
10.73
10.57
11.31
10.9
11
10.9
10.92
10.85
10.83
10.95
11.05
11.04
10.95
10.98
10.93
10.95
10.84
10.81
4/30/07 10.87
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing the Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a net ordinary income distribution in December
2006 of $0.0078 per share.
FUND SNAPSHOT
------------------------------------
Share Price $10.87
------------------------------------
Net Asset Value $11.00
------------------------------------
Premium/(Discount) to NAV -1.18%
------------------------------------
Market Yield 4.64%
------------------------------------
Taxable-Equivalent Yield1 6.44%
------------------------------------
Net Assets ($000) $89,265
------------------------------------
Average Effective Maturity
on Securities (Years) 15.87
------------------------------------
Modified Duration 5.49
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 4/20/88)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 6.03% 2.01%
------------------------------------
1-Year 11.71% 6.61%
------------------------------------
5-Year 6.62% 5.75%
------------------------------------
10-Year 4.95% 5.09%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 21.1%
------------------------------------
Texas 9.3%
------------------------------------
Illinois 8.6%
------------------------------------
Colorado 6.3%
------------------------------------
New York 5.9%
------------------------------------
Missouri 4.9%
------------------------------------
South Carolina 4.9%
------------------------------------
Ohio 4.3%
------------------------------------
Indiana 3.9%
------------------------------------
Michigan 3.6%
------------------------------------
Virginia 3.1%
------------------------------------
Virgin Islands 3.0%
------------------------------------
Tennessee 2.4%
------------------------------------
West Virginia 2.4%
------------------------------------
Pennsylvania 2.4%
------------------------------------
Other 13.9%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Healthcare 20.7%
------------------------------------
Utilities 15.9%
------------------------------------
U.S. Guaranteed 14.0%
------------------------------------
Tax Obligation/General 12.2%
------------------------------------
Tax Obligation/Limited 11.7%
------------------------------------
Materials 5.4%
------------------------------------
Education and Civic
Organizations 5.1%
------------------------------------
Water & Sewer 4.9%
------------------------------------
Other 10.1%
------------------------------------
9
Nuveen Municipal Value Fund, Inc. (NUV)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.0%
$ 940 Alabama Housing Finance Authority, Collateralized Home 4/08 at 102.00 Aaa $ 947,990
Mortgage Program Single Family Mortgage Revenue Bonds,
Series 1998A-2, 5.450%, 10/01/28 (Alternative Minimum Tax)
5,000 Courtland Industrial Development Board, Alabama, Solid Waste 11/09 at 101.00 Baa3 5,300,550
Disposal Revenue Bonds, Champion International Paper
Corporation, Series 1999A, 6.700%, 11/01/29
(Alternative Minimum Tax)
1,750 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/11 at 101.00 A2 (3) 1,896,073
Series 2001A, 5.750%, 6/01/31 (Pre-refunded 6/01/11)
12,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101.00 AAA 12,459,240
Warrants, Series 1999A, 5.375%, 2/01/36 (Pre-refunded
2/01/09) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
19,690 Total Alabama 20,603,853
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.5%
3,335 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AAA 3,494,513
Bonds, Series 2005A, 5.000%, 12/01/30 - FGIC Insured
3,000 Anchorage, Alaska, General Obligation Bonds, Series 2003B, 9/13 at 100.00 AAA 3,215,700
5.000%, 9/01/23 (Pre-refunded 9/01/13) - FGIC Insured
2,585 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 2,706,004
Settlement Asset-Backed Bonds, Series 2000, 6.200%, 6/01/22
(Pre-refunded 6/01/10)
------------------------------------------------------------------------------------------------------------------------------------
8,920 Total Alaska 9,416,217
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.2%
13,100 Arizona Health Facilities Authority, Hospital Revenue Bonds, 7/10 at 101.00 A (3) 14,320,920
Catholic Healthcare West, Series 1999A, 6.625%, 7/01/20
(Pre-refunded 7/01/10)
4,900 Arizona Health Facilities Authority, Hospital System Revenue 11/09 at 100.00 Baa3 (3) 5,198,508
Bonds, Phoenix Children's Hospital, Series 1999A,
6.250%, 11/15/29 (Pre-refunded 11/15/09)
1,400 Arizona Health Facilities Authority, Hospital System Revenue 2/12 at 101.00 Baa3 (3) 1,563,492
Bonds, Phoenix Children's Hospital, Series 2002A,
6.250%, 2/15/21 (Pre-refunded 2/15/12)
3,000 Phoenix Industrial Development Authority, Arizona, GNMA 4/15 at 100.00 Aaa 3,042,210
Collateralized Multifamily Housing Revenue Bonds, Park Lee
Apartments, Series 2004A, 5.050%, 10/20/44 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
22,400 Total Arizona 24,125,130
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.6%
10,460 Cabot School District 4, Lonoke County, Arkansas, General 8/08 at 100.00 Aaa 10,583,428
Obligation Refunding Bonds, Series 2003, 5.000%, 2/01/32 -
AMBAC Insured
2,000 University of Arkansas, Fayetteville, Various Facilities Revenue 12/12 at 100.00 Aaa 2,088,980
Bonds, Series 2002, 5.000%, 12/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
12,460 Total Arkansas 12,672,408
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.3%
California Department of Water Resources, Power Supply Revenue
Bonds, Series 2002A:
10,000 5.125%, 5/01/19 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 10,778,500
10,000 5.250%, 5/01/20 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 10,835,300
7,310 California Educational Facilities Authority, Revenue Bonds, 10/09 at 39.19 Aaa 2,622,097
Loyola Marymount University, Series 2000, 0.000%, 10/01/24
(Pre-refunded 10/01/09) - MBIA Insured
6,000 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 6,167,100
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
6,830 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 7,140,492
Bonds, J. David Gladstone Institutes, Series 2001,
5.250%, 10/01/34
10
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 17,155 California State Public Works Board, Lease Revenue Refunding 6/07 at 100.00 Aa2 (3) $ 17,181,419
Bonds, Various University of California Projects, Series 1993A,
5.500%, 6/01/21 (Pre-refunded 6/01/07)
13,695 California Statewide Community Development Authority, 4/09 at 101.00 BBB 13,963,422
Certificates of Participation, Internext Group, Series 1999,
5.375%, 4/01/17
California, General Obligation Bonds, Series 2003:
14,600 5.250%, 2/01/28 8/13 at 100.00 A+ 15,595,720
11,250 5.000%, 2/01/33 8/13 at 100.00 A+ 11,680,200
7,500 California, General Obligation Bonds, Series 2004, 2/14 at 100.00 A+ (3) 8,093,775
5.000%, 2/01/33 (Pre-refunded 2/01/14)
3,000 Capistrano Unified School District, Orange County, California, 9/09 at 102.00 N/R (3) 3,201,480
Special Tax Bonds, Community Facilities District 98-2 -
Ladera, Series 1999, 5.750%, 9/01/29 (Pre-refunded 9/01/09)
5,870 Central California Joint Powers Health Finance Authority, 8/07 at 100.00 Baa2 5,870,763
Certificates of Participation, Community Hospitals of Central
California, Series 1993, 5.000%, 2/01/23
5,000 Coast Community College District, Orange County, California, 8/18 at 100.00 AAA 3,869,400
General Obligation Bonds, Series 2006C, 0.000%, 8/01/32 -
FSA Insured
30,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 16,118,400
Toll Road Revenue Bonds, Series 1995A,
0.000%, 1/01/22 (ETM)
21,150 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 22,558,167
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.000%, 6/01/38 (Pre-refunded 6/01/13) -
AMBAC Insured
1,500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,504,620
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.125%, 6/01/47
3,540 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 4,109,834
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A:
5,000 5.000%, 6/01/38 - FGIC Insured 6/15 at 100.00 AAA 5,245,450
2,000 5.000%, 6/01/45 6/15 at 100.00 A 2,073,260
9,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AA 9,280,800
Waterworks Revenue Refunding Bonds, Series 2001A,
5.125%, 7/01/41
4,000 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B 4,541,560
California, Sublease Revenue Bonds, Los Angeles International
Airport, American Airlines Inc. Terminal 4 Project, Series 2002C,
7.500%, 12/01/24 (Alternative Minimum Tax)
Merced Union High School District, Merced County, California,
General Obligation Bonds, Series 1999A:
2,500 0.000%, 8/01/23 - FGIC Insured No Opt. Call AAA 1,244,175
2,555 0.000%, 8/01/24 - FGIC Insured No Opt. Call AAA 1,213,983
2,365 Montebello Unified School District, Los Angeles County, No Opt. Call AAA 977,596
California, General Obligation Bonds, Series 2004,
0.000%, 8/01/27 - FGIC Insured
8,000 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 8,566,000
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.625%, 7/01/34
San Bruno Park School District, San Mateo County, California,
General Obligation Bonds, Series 2000B:
2,575 0.000%, 8/01/24 - FGIC Insured No Opt. Call AAA 1,224,516
2,660 0.000%, 8/01/25 - FGIC Insured No Opt. Call AAA 1,205,140
7,300 San Diego County, California, Certificates of Participation, 9/09 at 101.00 Baa3 (3) 7,797,276
Burnham Institute, Series 1999, 6.250%, 9/01/29
(Pre-refunded 9/01/09)
1,854 Yuba County Water Agency, California, Yuba River Development 9/07 at 100.00 Baa3 1,853,907
Revenue Bonds, Pacific Gas and Electric Company,
Series 1966A, 4.000%, 3/01/16
------------------------------------------------------------------------------------------------------------------------------------
224,209 Total California 206,514,352
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.5%
5,000 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 AAA 5,382,600
Bonds, Series 2006, 5.250%, 10/01/40 - XLCA Insured
1,800 Colorado Educational and Cultural Facilities Authority, Charter 8/11 at 100.00 AAA 2,072,448
School Revenue Bonds, Peak-to-Peak Charter School,
Series 2001, 7.625%, 8/15/31 (Pre-refunded 8/15/11)
11
Nuveen Municipal Value Fund, Inc. (NUV) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 2,100 Colorado Health Facilities Authority, Revenue Bonds, 3/12 at 100.00 AA (3) $ 2,256,240
Catholic Health Initiatives, Series 2002A,
5.500%, 3/01/32 (ETM)
5,000 Colorado Health Facilities Authority, Revenue Bonds, 9/16 at 100.00 AA 4,872,600
Catholic Health Initiatives, Series 2006A, 4.500%, 9/01/38
250 Colorado Health Facilities Authority, Revenue Bonds, Sisters 7/07 at 100.00 AA 250,188
of Charity Healthcare Systems Inc., Series 1994,
5.250%, 5/15/14
500 Colorado Health Facilities Authority, Revenue Bonds, Vail Valley 1/12 at 100.00 BBB 527,950
Medical Center, Series 2001, 5.750%, 1/15/22
18,915 Denver, Colorado, Airport System Revenue Refunding Bonds, 11/13 at 100.00 AAA 19,744,801
Series 2003B, 5.000%, 11/15/33 - XLCA Insured
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 5,401,350
Bonds, Series 2000A, 5.750%, 9/01/35 (Pre-refunded 9/01/10) -
MBIA Insured
16,500 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 5,383,290
Series 2000B, 0.000%, 9/01/32 - MBIA Insured
39,700 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 31.42 AAA 10,997,694
Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) -
MBIA Insured
10,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AAA 2,260,100
Series 2004B, 0.000%, 3/01/36 - MBIA Insured
12,500 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/26 at 54.77 AAA 2,793,625
Series 2006A, 0.000%, 9/01/38 - MBIA Insured
1,450 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 102.00 AAA 1,570,089
Bonds, Senior Series 2001A, 5.500%, 6/15/19 - AMBAC Insured
7,000 Northwest Parkway Public Highway Authority, Colorado, 6/16 at 100.00 AAA 6,372,030
Revenue Bonds, Senior Series 2001C, 0.000%, 6/15/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
125,715 Total Colorado 69,885,005
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.4%
36,830 Washington Convention Center Authority, District of Columbia, 10/08 at 100.00 AAA 37,397,181
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
4.750%, 10/01/28 (Pre-refunded 10/01/08) - AMBAC Insured
10,000 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 9,935,200
Senior Lien Dedicated Tax Revenue Bonds, Series 2007A,
4.500%, 10/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
46,830 Total District of Columbia 47,332,381
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.0%
4,000 Escambia County Health Facilities Authority, Florida, Revenue 11/12 at 101.00 AA 4,340,560
Bonds, Ascension Health Credit Group, Series 2002C,
5.750%, 11/15/32
10,000 Florida State Board of Education, Public Education Capital 6/15 at 101.00 AAA 10,000,400
Outlay Bonds, Series 2005E, 4.500%, 6/01/35
1,750 Hillsborough County Industrial Development Authority, Florida, 10/16 at 100.00 A3 1,816,430
Hospital Revenue Bonds, Tampa General Hospital, Series 2006,
5.250%, 10/01/41
10,690 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/11 at 100.00 AAA 11,020,428
Bonds, Series 2001, 5.000%, 10/01/30 - AMBAC Insured
4,880 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 5,238,778
6.000%, 10/01/32 - FSA Insured (Alternative Minimum Tax)
4,895 Orange County Health Facilities Authority, Florida, Hospital 10/09 at 101.00 A 5,138,037
Revenue Bonds, Orlando Regional Healthcare System,
Series 1999E, 6.000%, 10/01/26
105 Orange County Health Facilities Authority, Florida, Hospital 10/09 at 101.00 A (3) 111,384
Revenue Bonds, Orlando Regional Healthcare System,
Series 1999E, 6.000%, 10/01/26 (Pre-refunded 10/01/09)
8,250 Orange County School Board, Florida, Certificates of 8/12 at 100.00 AAA 8,551,785
Participation, Series 2002A, 5.000%, 8/01/27 - MBIA Insured
12
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 14,730 South Miami Florida Health Facilities Authority, Hospital 8/17 at 100.00 AA- $ 15,128,594
Revenue, Baptist Health System Obligation Group,
Series 2007, 5.000%, 8/15/42 (WI/DD, Settling 5/16/07)
------------------------------------------------------------------------------------------------------------------------------------
59,300 Total Florida 61,346,396
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.0%
10,240 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/09 at 101.00 AAA 10,382,541
Series 1999A, 5.000%, 11/01/38 - FGIC Insured
2,500 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/12 at 100.00 AAA 2,600,825
Series 2001A, 5.000%, 11/01/33 - MBIA Insured
4,000 Augusta, Georgia, Water and Sewerage Revenue Bonds, 10/14 at 100.00 AAA 4,298,200
Series 2004, 5.250%, 10/01/39 - FSA Insured
2,250 Royston Hospital Authority, Georgia, Revenue Anticipation 7/09 at 102.00 N/R 2,334,308
Certificates, Ty Cobb Healthcare System Inc., Series 1999,
6.500%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
18,990 Total Georgia 19,615,874
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.1%
7,500 Hawaii, General Obligation Bonds, Series 2003DA, 9/13 at 100.00 AAA 8,037,075
5.250%, 9/01/23 - MBIA Insured
12,325 Honolulu City and County, Hawaii, General Obligation Bonds, 3/13 at 100.00 AAA 13,096,052
Series 2003A, 5.250%, 3/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
19,825 Total Hawaii 21,133,127
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.1%
2,060 Aurora, Illinois, Golf Course Revenue Bonds, Series 2000, 1/10 at 100.00 A+ 2,169,489
6.375%, 1/01/20
2,425 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 2,490,984
Obligation Bonds, Dedicated Tax Revenues, Series 1997A,
5.250%, 12/01/22 - AMBAC Insured
15,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 7,037,550
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1,
0.000%, 12/01/24 - FGIC Insured
1,125 Chicago Greater Metropolitan Sanitary District, Illinois, General No Opt. Call Aaa 1,213,065
Obligation Capital Improvement Bonds, Series 1991,
7.000%, 1/01/11 (ETM)
5,000 Chicago Housing Authority, Illinois, Revenue Bonds, Capital 7/12 at 100.00 Aaa 5,384,400
Fund Program, Series 2001, 5.375%, 7/01/18
(Pre-refunded 7/01/12)
285 Chicago, Illinois, General Obligation Bonds, Series 2002A, 7/12 at 100.00 AAA 306,971
5.625%, 1/01/39 - AMBAC Insured
9,715 Chicago, Illinois, General Obligation Bonds, Series 2002A, 7/12 at 100.00 AAA 10,594,208
5.625%, 1/01/39 (Pre-refunded 7/01/12) - AMBAC Insured
2,575 Chicago, Illinois, Second Lien Passenger Facility Charge Revenue 1/11 at 101.00 AAA 2,648,542
Bonds, O'Hare International Airport, Series 2001C,
5.100%, 1/01/26 - AMBAC Insured (Alternative Minimum Tax)
3,020 Cook County High School District 209, Proviso Township, 12/16 at 100.00 AAA 3,111,959
Illinois, General Obligation Bonds, Series 2004,
0.000%, 12/01/19 - FSA Insured
385 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 415,403
Illinois, General Obligation Bonds, Series 2003B,
5.250%, 11/01/20 - FSA Insured
1,615 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 1,757,039
Illinois, General Obligation Bonds, Series 2003B,
5.250%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured
5,000 Illinois Development Finance Authority, Gas Supply Revenue 11/13 at 101.00 AAA 5,132,700
Bonds, Peoples Gas, Light and Coke Company, Series 2003E,
4.875%, 11/01/38 (Mandatory put 11/01/18) - AMBAC Insured
(Alternative Minimum Tax)
28,030 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 17,277,131
Program Revenue Bonds, Kane, Cook and DuPage Counties
School District U46 - Elgin, Series 2002, 0.000%, 1/01/19 -
FSA Insured
1,800 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 1,103,112
Program Revenue Bonds, Winnebago and Boone Counties
School District 205 - Rockford, Series 2000, 0.000%, 2/01/19 -
FSA Insured
3,180 Illinois Development Finance Authority, Revenue Bonds, 12/12 at 100.00 BBB (3) 3,576,355
Chicago Charter School Foundation, Series 2002A,
6.250%, 12/01/32 (Pre-refunded 12/01/12)
13
Nuveen Municipal Value Fund, Inc. (NUV) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,450 Illinois Development Finance Authority, Revenue Bonds, Illinois 9/11 at 100.00 AAA $ 1,510,161
Wesleyan University, Series 2001, 5.125%, 9/01/35 -
AMBAC Insured
6,550 Illinois Development Finance Authority, Revenue Bonds, 9/11 at 100.00 Aaa 6,924,464
Illinois Wesleyan University, Series 2001, 5.125%, 9/01/35
(Pre-refunded 9/01/11) - AMBAC Insured
5,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ 5,440,300
Memorial Hospital, Series 2004A, 5.500%, 8/15/43
15,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/10 at 101.00 Baa2 16,029,750
Medical Center, Series 2000, 6.500%, 5/15/30
15,000 Illinois Health Facilities Authority, Revenue Bonds, Edward 2/11 at 101.00 AAA 15,931,500
Hospital Obligated Group, Series 2001B, 5.250%, 2/15/34
(Pre-refunded 2/15/11) - FSA Insured
8,145 Illinois Health Facilities Authority, Revenue Bonds, Sherman 8/07 at 101.00 AAA 8,331,113
Health Systems, Series 1997, 5.250%, 8/01/22 -
AMBAC Insured
4,350 Illinois Health Facilities Authority, Revenue Bonds, South No Opt. Call A (3) 5,151,966
Suburban Hospital, Series 1992, 7.000%, 2/15/18 (ETM)
5,000 Illinois Sports Facility Authority, State Tax Supported Bonds, 6/15 at 101.00 AAA 4,688,650
Series 2001, 0.000%, 6/15/30 - AMBAC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 1992A:
18,955 0.000%, 6/15/17 - FGIC Insured No Opt. Call AAA 12,536,647
12,830 0.000%, 6/15/18 - FGIC Insured No Opt. Call AAA 8,101,888
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 1994B:
7,250 0.000%, 6/15/18 - MBIA Insured No Opt. Call AAA 4,578,230
3,385 0.000%, 6/15/21 - MBIA Insured No Opt. Call AAA 1,861,141
5,190 0.000%, 6/15/28 - MBIA Insured No Opt. Call AAA 2,073,768
11,610 0.000%, 6/15/29 - FGIC Insured No Opt. Call AAA 4,432,350
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
10,000 0.000%, 6/15/24 - MBIA Insured 6/22 at 101.00 AAA 6,762,600
21,375 0.000%, 6/15/34 - MBIA Insured No Opt. Call AAA 6,477,908
21,000 0.000%, 12/15/35 - MBIA Insured No Opt. Call AAA 5,940,900
20,000 0.000%, 6/15/36 - MBIA Insured No Opt. Call AAA 5,519,000
22,945 0.000%, 6/15/39 - MBIA Insured No Opt. Call AAA 5,519,190
8,460 5.250%, 6/15/42 - MBIA Insured 6/12 at 101.00 AAA 8,985,197
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project,
Series 1996A:
16,550 0.000%, 12/15/21 - MBIA Insured No Opt. Call AAA 8,908,865
1,650 5.250%, 6/15/27 - AMBAC Insured 6/07 at 101.00 AAA 1,671,846
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project,
Series 2002B:
3,775 0.000%, 6/15/20 - MBIA Insured 6/17 at 101.00 AAA 3,201,238
5,715 0.000%, 6/15/21 - MBIA Insured 6/17 at 101.00 AAA 4,865,637
1,000 Round Lake, Lake County, Illinois, Special Tax Bonds, Lakewood 3/17 at 100.00 AAA 1,004,400
Grove Special Service Area 4, Series 2007, 4.700%, 3/01/33 -
AGC Insured
965 Tri-City Regional Port District, Illinois, Port and Terminal No Opt. Call N/R 967,422
Facilities Revenue Refunding Bonds, Delivery Network Project,
Series 2003A, 4.900%, 7/01/14 (Alternative Minimum Tax)
495 Tri-City Regional Port District, Illinois, Port and Terminal No Opt. Call N/R 498,341
Facilities Revenue Refunding Bonds, Dock 2 Enhancement
Project, Series 1998B, 5.875%, 7/01/08 (Alternative
Minimum Tax)
1,575 Will County Community School District 161, Summit Hill, No Opt. Call Aaa 1,012,946
Illinois, Capital Appreciation School Bonds, Series 1999,
0.000%, 1/01/18 - FGIC Insured
720 Will County Community School District 161, Summit Hill, No Opt. Call Aaa 465,487
Illinois, Capital Appreciation School Bonds, Series 1999,
0.000%, 1/01/18 - FGIC Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
337,155 Total Illinois 223,611,813
------------------------------------------------------------------------------------------------------------------------------------
14
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.9%
$ 10,000 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/13 at 101.00 AAA $ 10,868,000
Series 2001A, 5.375%, 2/01/19
2,000 Indiana Health Facility Financing Authority, Hospital Revenue 3/14 at 100.00 AAA 2,145,020
Bonds, Deaconess Hospital Inc., Series 2004A, 5.375%, 3/01/34 -
AMBAC Insured
Indiana Health Facility Financing Authority, Hospital Revenue
Bonds, Sisters of St. Francis Health Services Inc., Series 1997A:
255 5.125%, 11/01/17 (Pre-refunded 11/01/07) - MBIA Insured 11/07 at 102.00 AAA 261,765
595 5.125%, 11/01/17 (Pre-refunded 11/01/07) - MBIA Insured 11/07 at 102.00 AAA 610,785
3,175 5.375%, 11/01/27 (Pre-refunded 11/01/07) - MBIA Insured 11/07 at 102.00 AAA 3,263,138
7,345 5.375%, 11/01/27 (Pre-refunded 11/01/07) - MBIA Insured 11/07 at 102.00 AAA 7,548,897
20,000 Indiana Transportation Finance Authority, Highway Revenue 6/13 at 100.00 AAA 21,399,000
Bonds, Series 2003A, 5.000%, 6/01/28 (Pre-refunded 6/01/13) -
FSA Insured
Indianapolis Local Public Improvement Bond Bank, Indiana,
Series 1999E:
12,500 0.000%, 2/01/21 - AMBAC Insured No Opt. Call AAA 6,981,875
14,595 0.000%, 2/01/27 - AMBAC Insured No Opt. Call AAA 6,165,950
5,000 Mooresville School Building Corporation, Morgan County, 1/09 at 102.00 AAA 5,199,450
Indiana, First Mortgage Bonds, Series 1998, 5.000%, 7/15/15 -
FSA Insured
13,100 Noblesville, Indiana, Revenue Bonds, Catholic High School 7/13 at 101.00 N/R 13,489,987
Corporation, Series 2003, 5.750%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
88,565 Total Indiana 77,933,867
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.9%
3,500 Iowa Higher Education Loan Authority, Private College Facility 10/12 at 100.00 A (3) 3,793,300
Revenue Bonds, Wartburg College, Series 2002,
5.500%, 10/01/33 (Pre-refunded 10/01/12) - ACA Insured
7,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 7,330,890
Revenue Bonds, Series 2005C, 5.625%, 6/01/46
6,160 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 6,646,825
Asset-Backed Revenue Bonds, Series 2001B, 5.600%, 6/01/35
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
16,660 Total Iowa 17,771,015
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.5%
10,000 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AAA 10,623,200
Series 2004A, 5.000%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.1%
1,755 Greater Kentucky Housing Assistance Corporation, FHA-Insured 7/07 at 100.00 AAA 1,757,176
Section 8 Mortgage Revenue Refunding Bonds, Series 1997A,
6.100%, 1/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.0%
1,000 East Baton Rouge Parish, Louisiana, Revenue Refunding Bonds, 3/08 at 102.00 B2 1,008,290
Georgia Pacific Corporation Project, Series 1998,
5.350%, 9/01/11 (Alternative Minimum Tax)
5,150 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 5,405,389
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/32
10,210 Louisiana Public Facilities Authority, Hospital Revenue 5/07 at 100.00 AAA 11,229,877
Refunding Bonds, Southern Baptist Hospital, Series 1986,
8.000%, 5/15/12 (ETM)
21,155 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 22,592,482
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
37,515 Total Louisiana 40,236,038
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.4%
3,500 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 3,496,395
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
4,600 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A3 4,900,564
Revenue Bonds, MedStar Health, Series 2004,
5.500%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
8,100 Total Maryland 8,396,959
------------------------------------------------------------------------------------------------------------------------------------
15
Nuveen Municipal Value Fund, Inc. (NUV) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.7%
$ 10,000 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA $ 10,618,200
Tax Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/32
(Pre-refunded 7/01/12)
1,720 Massachusetts Development Finance Agency, Resource 12/08 at 102.00 BBB 1,766,939
Recovery Revenue Bonds, Ogden Haverhill Associates,
Series 1998B, 5.100%, 12/01/12 (Alternative Minimum Tax)
4,340 Massachusetts Health and Educational Facilities Authority, 11/11 at 101.00 AA 4,537,730
Revenue Bonds, Cape Cod Health Care Inc., Series 2001C,
5.250%, 11/15/31 - RAAI Insured
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Northern Berkshire Community Services Inc.,
Series 2004B:
1,340 6.250%, 7/01/24 7/14 at 100.00 BB- 1,435,194
1,000 6.375%, 7/01/34 7/14 at 100.00 BB- 1,067,140
Massachusetts Turnpike Authority, Metropolitan Highway System
Revenue Bonds, Senior Series 1997A:
10,000 5.000%, 1/01/27 - MBIA Insured 1/09 at 100.00 AAA 10,143,200
22,440 5.000%, 1/01/37 - MBIA Insured 7/07 at 102.00 AAA 22,775,927
8,000 Massachusetts Turnpike Authority, Metropolitan Highway 7/07 at 102.00 AAA 8,137,040
System Revenue Bonds, Subordinate Series 1997B,
5.125%, 1/01/37 - MBIA Insured
7,405 Massachusetts Turnpike Authority, Metropolitan Highway 1/09 at 101.00 AAA 7,567,688
System Revenue Bonds, Subordinate Series 1999A,
5.000%, 1/01/39 - AMBAC Insured
1,750 Massachusetts Water Pollution Abatement Trust, Pooled 8/10 at 101.00 AAA 1,859,743
Loan Program Bonds, Series 6, 5.500%, 8/01/30
(Pre-refunded 8/01/10)
4,250 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/10 at 101.00 AAA 4,497,053
Program Bonds, Series 6, 5.500%, 8/01/30
------------------------------------------------------------------------------------------------------------------------------------
72,245 Total Massachusetts 74,405,854
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.5%
10,245 Detroit Local Development Finance Authority, Michigan, Tax 5/09 at 101.00 BB- 10,356,363
Increment Bonds, Series 1998A,5.500%, 5/01/21
5,000 Detroit Water Supply System, Michigan, Water Supply System 7/16 at 100.00 AAA 5,033,150
Revenue Bonds, Series 2006D, 4.625%, 7/01/32 - FSA Insured
14,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 14,712,600
Revenue Bonds, Series 2005A, 5.000%, 7/01/35 -
MBIA Insured
5,240 Michigan Municipal Bond Authority, Clean Water Revolving 10/12 at 100.00 AAA 5,612,774
Fund Revenue Refunding Bonds, Series 2002, 5.250%, 10/01/19
Michigan Municipal Bond Authority, Public School Academy
Revenue Bonds, Detroit Academy of Arts and Sciences Charter
School, Series 2001A:
1,500 7.500%, 10/01/12 10/09 at 102.00 Ba1 1,543,695
5,000 7.900%, 10/01/21 10/09 at 102.00 Ba1 5,300,200
3,500 8.000%, 10/01/31 10/09 at 102.00 Ba1 3,708,145
22,235 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 22,249,675
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/28
Michigan State Hospital Finance Authority, Revenue Refunding
Bonds, Detroit Medical Center Obligated Group, Series 1993A:
1,000 6.250%, 8/15/13 8/07 at 100.00 BB- 1,000,640
12,925 6.500%, 8/15/18 8/07 at 100.00 BB- 12,934,823
7,200 Michigan Strategic Fund, Limited Obligation Resource 12/12 at 100.00 AAA 7,565,688
Recovery Revenue Refunding Bonds, Detroit Edison Company,
Series 2002D, 5.250%, 12/15/32 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
87,845 Total Michigan 90,017,753
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.2%
1,750 Breckenridge, Minnesota, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 1,814,295
Initiatives, Series 2004A, 5.000%, 5/01/30
390 Minnesota Housing Finance Agency, Rental Housing Bonds, 8/07 at 100.00 AAA 390,671
Series 1995D, 5.900%, 8/01/15 - MBIA Insured
16
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
$ 2,000 Saint Paul Housing and Redevelopment Authority, Minnesota, 11/16 at 100.00 Baa1 $ 2,072,080
Health Care Facilities Revenue Bonds, HealthPartners
Obligated Group, Series 2006, 5.250%, 5/15/36
------------------------------------------------------------------------------------------------------------------------------------
4,140 Total Minnesota 4,277,046
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.7%
40,000 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 42,078,395
Bonds, BJC Health System, Series 2003, 5.250%, 5/15/32
2,000 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,096,020
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/32 - FSA Insured
4,000 Sugar Creek, Missouri, Industrial Development Revenue Bonds, 6/13 at 101.00 BBB 4,237,240
Lafarge North America Inc., Series 2003A, 5.650%, 6/01/37
(Alternative Minimum Tax)
West Plains Industrial Development Authority, Missouri, Hospital
Facilities Revenue Bonds, Ozark Medical Center, Series 1997:
1,750 5.500%, 11/15/12 11/07 at 101.00 BB 1,767,395
1,000 5.600%, 11/15/17 11/07 at 101.00 BB 1,010,090
3,075 West Plains Industrial Development Authority, Missouri, 11/09 at 101.00 BB 3,208,793
Hospital Facilities Revenue Bonds, Ozark Medical Center,
Series 1999, 6.750%, 11/15/24
------------------------------------------------------------------------------------------------------------------------------------
51,825 Total Missouri 54,397,933
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.2%
3,750 Forsyth, Rosebud County, Montana, Pollution Control Revenue 3/13 at 101.00 AAA 3,927,600
Refunding Bonds, Puget Sound Energy, Series 2003A,
5.000%, 3/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.5%
2,500 Carson City, Nevada, Hospital Revenue Bonds, Carson-Tahoe 9/13 at 100.00 AA 2,601,225
Hospital, Series 2003A, 5.125%, 9/01/29 - RAAI Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
15,095 0.000%, 1/01/24 - AMBAC Insured No Opt. Call AAA 7,206,655
11,000 0.000%, 1/01/25 - AMBAC Insured No Opt. Call AAA 5,007,310
2,000 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 AAA 2,121,040
22,010 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 22,711,459
10,000 Reno, Nevada, Health Facilities Revenue Bonds, Catholic Health 7/17 at 100.00 A 10,547,500
Care West, Series 2007A, 5.250%, 7/01/31 (UB)
------------------------------------------------------------------------------------------------------------------------------------
62,605 Total Nevada 50,195,189
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.7%
23,625 New Jersey Economic Development Authority, Special Facilities 9/09 at 101.00 B 24,430,849
Revenue Bonds, Continental Airlines Inc., Series 1999,
6.250%, 9/15/29 (Alternative Minimum Tax)
9,000 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 9,605,250
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Trinitas Hospital Obligated Group, Series 2000:
250 7.375%, 7/01/15 7/10 at 101.00 BBB- 276,478
11,200 7.500%, 7/01/30 7/10 at 101.00 BBB- 12,332,544
7,500 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 8,235,675
System Bonds, Series 2003C, 5.500%, 6/15/24
(Pre-refunded 6/15/13)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
30,000 0.000%, 12/15/31 - FGIC Insured No Opt. Call AAA 10,247,400
27,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 8,806,860
310 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call AAA 357,759
6.500%, 1/01/16 - MBIA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
105 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 121,728
1,490 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 1,727,372
17
Nuveen Municipal Value Fund, Inc. (NUV) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 27,185 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA $ 30,221,564
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/42
(Pre-refunded 6/01/12)
7,165 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA 8,137,649
Settlement Asset-Backed Bonds, Series 2003, 6.250%, 6/01/43
(Pre-refunded 6/01/13)
------------------------------------------------------------------------------------------------------------------------------------
144,830 Total New Jersey 114,501,128
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.6%
1,500 University of New Mexico, Revenue Refunding Bonds, No Opt. Call AA 1,747,170
Series 1992A, 6.000%, 6/01/21
9,600 University of New Mexico, Subordinate Lien Revenue 6/12 at 100.00 AA 9,936,960
Refunding and Improvement Bonds, Series 2002A,
5.000%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
11,100 Total New Mexico 11,684,130
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 14.4%
8,500 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA 8,921,005
Mortgage Revenue Bonds, Kaleida Health, Series 2004,
5.050%, 2/15/25
200 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AA- 206,548
Revenue Bonds, Mental Health Services Facilities,
Series 1999D, 5.250%, 2/15/29
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 1999D:
245 5.250%, 2/15/29 (Pre-refunded 8/15/09) 8/09 at 101.00 N/R (3) 254,959
65 5.250%, 2/15/29 (Pre-refunded 8/15/09) 8/09 at 101.00 AA- (3) 67,898
6,490 5.250%, 2/15/29 (Pre-refunded 8/15/09) 8/09 at 101.00 AA- (3) 6,779,324
5,200 Dormitory Authority of the State of New York, New York City, 5/10 at 101.00 A+ (3) 5,600,712
Lease Revenue Bonds, Court Facilities, Series 1999,
6.000%, 5/15/39 (Pre-refunded 5/15/10)
2,500 Dormitory Authority of the State of New York, Revenue Bonds, 7/08 at 100.00 BBB 2,544,425
Mount Sinai NYU Health Obligated Group, Series 2000A,
5.500%, 7/01/26
2,625 Dormitory Authority of the State of New York, Revenue Bonds, 7/08 at 100.00 BBB 2,663,824
Mount Sinai NYU Health, Series 2000C, 5.500%, 7/01/26
5,360 East Rochester Housing Authority, New York, FHA-Insured 8/07 at 102.00 AAA 5,490,677
Mortgage Revenue Bonds, St. John's Meadows Project,
Series 1997A, 5.600%, 8/01/17 (Pre-refunded 8/01/07) -
MBIA Insured
1,760 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 1,735,800
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured
11,000 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 11,297,660
Revenue Bonds, Series 1998A, 5.250%, 12/01/26
(Pre-refunded 6/01/08) - MBIA Insured
15,500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 A- (3) 16,597,865
Revenue Bonds, Series 2001A, 5.375%, 9/01/25
(Pre-refunded 9/01/11)
2,000 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A- 2,108,160
Revenue Bonds, Series 2006B, 5.000%, 12/01/35
13,600 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 AAA 13,636,448
Revenue Bonds, Series 2006B, 4.500%, 11/15/32 -
FSA Insured (UB)
10,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 B 11,802,200
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative
Minimum Tax)
5,500 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 5,789,795
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005B, 5.000%, 6/15/36 - FSA Insured
5 New York City, New York, General Obligation Bonds, 8/08 at 100.00 AA- 5,083
Fiscal Series 1997E, 6.000%, 8/01/16
39,610 New York City, New York, General Obligation Bonds, 10/07 at 101.00 Aaa 40,411,705
Fiscal Series 1997G, 6.000%, 10/15/26
(Pre-refunded 10/15/07)
9,320 New York City, New York, General Obligation Bonds, 8/07 at 101.00 AA- 9,449,082
Fiscal Series 1998D, 5.500%, 8/01/10
4,075 New York City, New York, General Obligation Bonds, 8/07 at 101.00 AA- (3) 4,133,191
Fiscal Series 1998D, 5.500%, 8/01/10 (Pre-refunded 8/01/07)
New York City, New York, General Obligation Bonds,
Fiscal Series 2003J:
4,515 5.500%, 6/01/21 6/13 at 100.00 AA- 4,886,359
2,960 5.500%, 6/01/22 6/13 at 100.00 AA- 3,200,115
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
New York City, New York, General Obligation Bonds,
Fiscal Series 2003J:
$ 10,485 5.500%, 6/01/21 (Pre-refunded 6/01/13) 6/13 at 100.00 A1 (3) $ 11,531,718
7,040 5.500%, 6/01/22 (Pre-refunded 6/01/13) 6/13 at 100.00 A1 (3) 7,742,803
New York City, New York, General Obligation Bonds,
Fiscal Series 2004C:
8,000 5.250%, 8/15/24 8/14 at 100.00 AA- 8,582,080
6,000 5.250%, 8/15/25 8/14 at 100.00 AA- 6,432,660
10,000 New York Dorm Authority, FHA Insured Mortgage Hospital 8/16 at 100.00 AAA 10,129,400
Revenue Bonds, Kaleida Health, Series 2006, 4.700%, 2/15/35 -
FHA Insured (UB)
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
10,000 5.500%, 6/01/17 6/11 at 100.00 AA- 10,623,800
26,190 5.500%, 6/01/18 6/12 at 100.00 AA- 28,136,703
33,810 5.500%, 6/01/19 6/13 at 100.00 AA- 36,724,083
1,510 New York City Industrial Development Agency, New York, Civic 12/16 at 100.00 BB+ 1,511,646
Facility Revenue Bonds, Vaughn College of Aeronautics,
Series 2006B, 5.000%, 12/01/31
2,500 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 2,697,525
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
6.250%, 12/01/10 - MBIA Insured (Alternative Minimum Tax)
8,500 Power Authority of the State of New York, General Revenue 11/10 at 100.00 Aa2 8,870,260
Bonds, Series 2000A, 5.250%, 11/15/40
------------------------------------------------------------------------------------------------------------------------------------
275,065 Total New York 290,565,513
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.9%
1,500 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 1,555,245
Governmental Facilities Projects, Series 2003G,
5.000%, 6/01/33
2,500 North Carolina Eastern Municipal Power Agency, Power 1/13 at 100.00 BBB 2,605,200
System Revenue Refunding Bonds, Series 2003D,
5.125%, 1/01/26
1,500 North Carolina Infrastructure Finance Corporation, Certificates 2/14 at 100.00 AA+ 1,582,905
of Participation, Correctional Facilities, Series 2004A,
5.000%, 2/01/20
2,000 North Carolina Medical Care Commission, Health System 10/17 at 100.00 AA 1,980,920
Revenue Bonds, Mission St. Joseph's Health System,
Series 2007, 4.500%, 10/01/31
10,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/10 at 101.00 A3 10,738,700
Revenue Bonds, Series 1999B, 6.500%, 1/01/20
------------------------------------------------------------------------------------------------------------------------------------
17,500 Total North Carolina 18,462,970
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.1%
3,000 Columbus City School District, Franklin County, Ohio, General 6/13 at 100.00 AAA 3,208,170
Obligation Bonds, Series 2003, 5.000%, 12/01/31
(Pre-refunded 6/01/13) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.8%
15,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA- 15,730,200
St. John Health System, Series 2004, 5.125%, 2/15/31
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.1%
2,600 Clackamas County Hospital Facility Authority, Oregon, Revenue 5/11 at 101.00 AA- 2,723,110
Refunding Bonds, Legacy Health System, Series 2001,
5.250%, 5/01/21
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.7%
4,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/08 at 100.00 AA 4,516,785
Bonds, University of Pennsylvania, Series 1998,
4.500%, 7/15/21
3,250 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 3,219,450
Revenue Bonds, Series 96A, 4.650%, 10/01/31
(Alternative Minimum Tax)
6,500 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 7,163,585
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
8,000 Philadelphia School District, Pennsylvania, General Obligation 6/14 at 100.00 AAA 8,681,280
Bonds, Series 2004D, 5.125%, 6/01/34
(Pre-refunded 6/01/14) - FGIC Insured
19
Nuveen Municipal Value Fund, Inc. (NUV) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 10,075 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA $ 10,774,104
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/33 (Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
32,325 Total Pennsylvania 34,355,204
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.1%
5,450 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa3 5,888,507
Environmental Control Facilities Financing Authority,
Co-Generation Facility Revenue Bonds, Series 2000A,
6.625%, 6/01/26 (Alternative Minimum Tax)
10,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 10,686,000
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
5,000 Puerto Rico, General Obligation Bonds, Series 2000B, 7/10 at 100.00 AAA 5,301,200
5.625%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,450 Total Puerto Rico 21,875,707
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.2%
6,250 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA 6,380,438
Hospital Financing Revenue Bonds, Lifespan Obligated Group,
Series 1996, 5.250%, 5/15/26 - MBIA Insured
16,070 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 17,347,886
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
22,320 Total Rhode Island 23,728,324
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.7%
7,000 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A 7,416,990
Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/29
3,000 Myrtle Beach, South Carolina, Hospitality and Accommodation 6/14 at 100.00 AAA 3,135,390
Fee Revenue Bonds, Series 2004A, 5.000%, 6/01/36 -
FGIC Insured
8,475 Piedmont Municipal Power Agency, South Carolina, Electric 7/07 at 100.00 BBB 8,477,966
Revenue Refunding Bonds, Series 1986, 5.000%, 1/01/25
20,750 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 21,977,155
Economic Development Revenue Bonds, Bon Secours
Health System Inc., Series 2002A, 5.625%, 11/15/30
8,000 South Carolina JOBS Economic Development Authority, 12/10 at 102.00 Baa2 (3) 9,103,520
Hospital Revenue Bonds, Palmetto Health Alliance,
Series 2000A, 7.375%, 12/15/21 (Pre-refunded 12/15/10)
4,215 Spartanburg Sanitary Sewer District, South Carolina, Sewer 3/14 at 100.00 AAA 4,409,522
System Revenue Bonds, Series 2003B, 5.000%, 3/01/38 -
MBIA Insured
110 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 116,994
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
51,550 Total South Carolina 54,637,537
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.3%
Knox County Health, Educational and Housing Facilities Board,
Tennessee, Hospital Revenue Bonds, Baptist Health System of
East Tennessee Inc., Series 2002:
3,000 6.375%, 4/15/22 4/12 at 101.00 Ba2 3,085,770
2,605 6.500%, 4/15/31 4/12 at 101.00 Ba2 2,689,324
------------------------------------------------------------------------------------------------------------------------------------
5,605 Total Tennessee 5,775,094
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 5.5%
5,000 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 4,865,650
Bonds, American Airlines Inc., Series 2007, 5.250%, 12/01/29
(Alternative Minimum Tax)
1,000 Austin Convention Enterprises Inc., Texas, Convention Center 1/17 at 100.00 BB 1,056,870
Hotel Revenue Bonds, First Tier Series 2006B, 5.750%, 1/01/34
5,440 Austin, Texas, Combined Utility System Revenue Bonds, No Opt. Call AAA 5,691,056
Series 1992A, 12.500%, 11/15/07 - MBIA Insured (ETM)
18,825 Austin, Texas, Combined Utility System Revenue Bonds, No Opt. Call AAA 19,689,821
Series 1992A, 12.500%, 11/15/07 - MBIA Insured
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Baa2 $ 5,841,650
Refunding Bonds, TXU Electric Company, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
4,000 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 4,174,400
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/35 - FGIC Insured
2,700 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AAA 2,845,719
Revenue Bonds, Series 2001G, 5.250%, 11/15/30 -
MBIA Insured
23,875 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 8,952,648
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/29 - AMBAC Insured
10,045 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 10,595,165
Series 2000A, 5.875%, 7/01/16 - FSA Insured (Alternative
Minimum Tax)
Irving Independent School District, Texas, Unlimited Tax School
Building Bonds, Series 1997:
5,685 0.000%, 2/15/10 No Opt. Call AAA 5,108,086
3,470 0.000%, 2/15/11 No Opt. Call AAA 2,997,282
5,000 Kerrville Health Facilities Development Corporation, Texas, No Opt. Call BBB- 5,227,950
Revenue Bonds, Sid Peterson Memorial Hospital Project,
Series 2005, 5.375%, 8/15/35
22,060 Leander Independent School District, Williamson and Travis 8/09 at 31.45 AAA 6,277,173
Counties, Texas, Unlimited Tax School Building and Refunding
Bonds, Series 2000, 0.000%, 8/15/27
6,000 Matagorda County Navigation District 1, Texas, Revenue 4/08 at 102.00 BBB- 6,294,000
Bonds, Reliant Energy Inc., Series 1999C, 8.000%, 5/01/29
5,000 Port Corpus Christi Industrial Development Corporation, Texas, 5/07 at 102.00 BBB- 5,112,300
Environmental Facilities Revenue Bonds, Citgo Petroleum
Corporation, Series 2003, 8.250%, 11/01/31 (Alternative
Minimum Tax)
5,000 Port Corpus Christi Industrial Development Corporation, Texas, 4/08 at 102.00 BBB 5,153,250
Revenue Refunding Bonds, Valero Refining and Marketing
Company, Series 1997A, 5.400%, 4/01/18
5,000 Richardson Hospital Authority, Texas, Revenue Bonds, 12/13 at 100.00 BBB 5,472,350
Richardson Regional Medical Center, Series 2004,
6.000%, 12/01/34
2,000 Sabine River Authority, Texas, Pollution Control Revenue 7/13 at 101.00 Baa2 2,101,400
Refunding Bonds, TXU Electric Company, Series 2003A,
5.800%, 7/01/22
3,000 San Antonio, Texas, Water System Revenue Bonds, 5/15 at 100.00 AAA 3,067,350
Series 2005, 4.750%, 5/15/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
138,210 Total Texas 110,524,120
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.0%
3,000 Eagle Mountain, Utah, Gas and Electric Revenue Bonds, 6/15 at 100.00 AA 3,128,520
Series 2005, 5.000%, 6/01/24 - RAAI Insured
1,655 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 1,693,346
Refunding Bonds, Series 1997B, 5.750%, 7/01/19
(Pre-refunded 7/01/07) - MBIA Insured
3,345 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 3,422,805
Refunding Bonds, Series 1997B, 5.750%, 7/01/19 -
MBIA Insured
1,570 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 101.50 Aaa 1,604,116
Series 1998G-2, Class I, 5.200%, 7/01/30
(Alternative Minimum Tax)
3,700 Utah State Board of Regents, Utah State University, Revenue 4/14 at 100.00 AAA 3,872,642
Bonds, Series 2004, 5.000%, 4/01/35 - MBIA Insured
5,810 Utah Water Finance Agency, Revenue Bonds, Pooled Loan 10/12 at 100.00 Aaa 6,157,612
Financing Program, Series 2002C, 5.250%, 10/01/28 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
19,080 Total Utah 19,879,041
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 0.1%
2,500 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 2,759,650
Refinery Project - Hovensa LLC, Series 2003, 6.125%, 7/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
21
Nuveen Municipal Value Fund, Inc. (NUV) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.4%
$ 4,125 Metropolitan Washington D.C. Airports Authority, Airport 10/12 at 100.00 AAA $ 4,474,511
System Revenue Bonds, Series 2002A, 5.750%, 10/01/16 -
FGIC Insured (Alternative Minimum Tax)
15,000 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 28.38 AAA 4,056,600
Bonds, Route 895 Connector Toll Road, Series 1998A,
0.000%, 8/15/30 (Pre-refunded 8/15/08)
Pocahontas Parkway Association, Virginia, Senior Lien Revenue
Bonds, Route 895 Connector Toll Road, Series 1998B:
19,400 0.000%, 8/15/33 (Pre-refunded 8/15/08) 8/08 at 23.55 AAA 4,353,748
60,500 0.000%, 8/15/35 (Pre-refunded 8/15/08) 8/08 at 20.95 AAA 12,075,195
3,245 Virginia Housing Development Authority, Multifamily Housing 1/08 at 102.00 AA+ 3,331,187
Bonds, Series 1997E, 5.600%, 11/01/17 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
102,270 Total Virginia 28,291,241
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 2.5%
6,400 Cowlitz County Public Utilities District 1, Washington, Electric 9/14 at 100.00 AAA 6,693,312
Production Revenue Bonds, Series 2004, 5.000%, 9/01/34 -
FGIC Insured
12,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 13,794,375
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002B, 6.000%, 7/01/18 - AMBAC Insured
4,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 AAA 4,371,760
Bonds, Nuclear Project 3, Series 2003A, 5.500%, 7/01/17 -
XLCA Insured
8,200 Washington Public Power Supply System, Revenue Refunding No Opt. Call Aaa 6,155,658
Bonds, Nuclear Project 3, Series 1989B, 0.000%, 7/01/14
5,000 Washington State Healthcare Facilities Authority, Revenue 10/16 at 100.00 AAA 5,015,000
Bonds, Providence Health Care Services, Series 2006A,
4.625%, 10/01/34 - FGIC Insured
4,115 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 4,585,303
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.625%, 6/01/32
Washington State, Motor Vehicle Fuel Tax General Obligation
Bonds, Series 2002-03C:
9,000 0.000%, 6/01/29 - MBIA Insured No Opt. Call AAA 3,397,410
16,195 0.000%, 6/01/30 - MBIA Insured No Opt. Call AAA 5,836,354
------------------------------------------------------------------------------------------------------------------------------------
65,410 Total Washington 49,849,172
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.6%
Badger Tobacco Asset Securitization Corporation, Wisconsin,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
7,935 6.125%, 6/01/27 6/12 at 100.00 BBB 8,506,796
12,485 6.375%, 6/01/32 6/12 at 100.00 BBB 13,562,830
6,000 Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue 8/13 at 100.00 AAA 6,447,060
Bonds, Public Schools, Series 2003A, 5.125%, 8/01/22
(Pre-refunded 8/01/13) - AMBAC Insured
12,305 Wisconsin Health and Educational Facilities Authority, Revenue 8/07 at 102.00 AAA 12,589,984
Bonds, Aurora Healthcare Inc., Series 1997, 5.250%, 8/15/27 -
MBIA Insured
6,000 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 BBB+ 6,438,060
Bonds, Franciscan Sisters of Christian Charity Healthcare
Ministry, Series 2003A, 5.875%, 9/01/33
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/16 at 100.00 BBB+ 1,037,750
Bonds, Marshfield Clinic, Series 2006A, 5.000%, 2/15/17
3,750 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 101.00 A- (3) 4,111,613
Bonds, Wheaton Franciscan Services Inc., Series 2002,
5.750%, 8/15/30 (Pre-refunded 2/15/12)
------------------------------------------------------------------------------------------------------------------------------------
49,475 Total Wisconsin 52,694,093
------------------------------------------------------------------------------------------------------------------------------------
$ 2,318,789 Total Long-Term Investments (cost $1,845,569,408) - 100.0% 2,011,440,590
=============-----------------------------------------------------------------------------------------------------------------------
22
PRINCIPAL
AMOUNT (000) DESCRIPTION RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.3%
$ 6,345 Metropolitan Transportation Authority, New York, Transportation VMIG-1 $ 6,345,000
Revenue Bonds, Variable Rate Demand Obligations,
Series 2005G, 4.030%, 11/01/26 (4)
=============-----------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $6,345,000) 6,345,000
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,851,914,408) - 100.3% 2,017,785,590
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.1)% (22,385,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.8% 16,640,279
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $2,012,040,869
====================================================================================================================
(1) 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. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(2) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(4) Investment has a maturity of more than one year, but
has variable rate and demand features which qualify it
as a short-term investment. The rate disclosed is that
in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
23
Nuveen Municipal Income Fund, Inc. (NMI)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.9%
$ 690 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB $ 740,625
Environmental Improvement Revenue Bonds, MeadWestvaco
Corporation, Series 2002A, 6.350%, 5/15/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 21.3%
5,530 Adelanto School District, San Bernardino County, California, No Opt. Call AAA 2,910,218
General Obligation Bonds, Series 1997A, 0.000%, 9/01/22 -
MBIA Insured
Brea Olinda Unified School District, California, General
Obligation Bonds, Series 1999A:
2,000 0.000%, 8/01/21 - FGIC Insured No Opt. Call AAA 1,095,220
2,070 0.000%, 8/01/22 - FGIC Insured No Opt. Call AAA 1,081,803
2,120 0.000%, 8/01/23 - FGIC Insured No Opt. Call AAA 1,056,735
1,000 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 1,050,440
Kaiser Permanante System, Series 2006, 5.250%, 4/01/39
740 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 765,241
Sutter Health, Series 2007A, 5.000%, 11/15/42 (WI/DD,
Settling 5/01/07)
250 California Housing Finance Agency, California, Home Mortgage 2/17 at 100.00 Aa2 251,240
Revenue Bonds, Series 2007E, 4.800%, 8/01/37 (WI/DD,
Settling 5/16/07) (Alternative Minimum Tax)
3,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A 3,135,390
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.000%, 6/01/25
1,000 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 1,013,660
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.000%, 7/01/39
500 California, General Obligation Bonds, Series 2004, 5.200%, 4/01/26 4/14 at 100.00 A+ 535,220
1,000 California, General Obligation Bonds, Series 2005, 5.000%, 3/01/27 3/16 at 100.00 A+ 1,054,340
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,482,910
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
500 Lake Elsinore Public Finance Authority, California, Local Agency 10/13 at 102.00 N/R 550,855
Revenue Refunding Bonds, Series 2003H, 6.375%, 10/01/33
1,000 Vernon, California, Electric System Revenue Bonds, Malburg 4/08 at 100.00 Aaa 1,017,200
Generating Station Project, Series 2003C, 5.375%, 4/01/18
(Pre-refunded 4/01/08)
------------------------------------------------------------------------------------------------------------------------------------
23,710 Total California 19,000,472
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.4%
825 Colorado Educational and Cultural Facilities Authority, Charter 7/12 at 100.00 BBB 864,468
School Revenue Bonds, Douglas County School District RE-1 -
DCS Montessori School, Series 2002A, 6.000%, 7/15/22
460 Colorado Educational and Cultural Facilities Authority, Charter 8/11 at 100.00 AAA 522,040
School Revenue Bonds, Peak-to-Peak Charter School,
Series 2001, 7.500%, 8/15/21 (Pre-refunded 8/15/11)
1,000 Colorado Educational and Cultural Facilities Authority, Charter 6/11 at 100.00 Ba1 (3) 1,127,020
School Revenue Bonds, Weld County School District 6 -
Frontier Academy, Series 2001, 7.375%, 6/01/31
(Pre-refunded 6/01/11)
1,000 Colorado Health Facilities Authority, Revenue Bonds, 6/16 at 100.00 A- 1,021,570
Evangelical Lutheran Good Samaritan Society, Series 2005,
5.000%, 6/01/35
2,000 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 2,134,580
Refunding Bonds, Series 2000A, 6.000%, 11/15/16 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,285 Total Colorado 5,669,678
------------------------------------------------------------------------------------------------------------------------------------
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 2.2%
$ 1,480 Capitol Region Education Council, Connecticut, Revenue Bonds, 10/07 at 100.00 BBB $ 1,496,694
Series 1995, 6.750%, 10/15/15
500 Eastern Connecticut Resource Recovery Authority, Solid Waste 7/07 at 100.00 BBB 504,245
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A,
5.500%, 1/01/14 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,980 Total Connecticut 2,000,939
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.3%
170 Dade County Industrial Development Authority, Florida, Revenue 6/07 at 101.00 N/R 171,811
Bonds, Miami Cerebral Palsy Residential Services Inc.,
Series 1995, 8.000%, 6/01/22
1,250 Martin County Industrial Development Authority, Florida, 6/07 at 100.00 BB+ 1,262,700
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP, Series 1994A, 7.875%, 12/15/25
(Alternative Minimum Tax)
600 Martin County Industrial Development Authority, Florida, 6/07 at 100.00 BB+ 606,978
Industrial Development Revenue Refunding Bonds, Indiantown
Cogeneration LP, Series 1995B, 8.050%, 12/15/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,020 Total Florida 2,041,489
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 8.7%
1,310 Chicago, Illinois, Tax Increment Allocation Bonds, Irving/Cicero 1/09 at 100.00 N/R 1,361,025
Redevelopment Project, Series 1998, 7.000%, 1/01/14
Illinois Development Finance Authority, Revenue Bonds, Chicago
Charter School Foundation, Series 2002A:
500 6.125%, 12/01/22 (Pre-refunded 12/01/12) 12/12 at 100.00 BBB (3) 559,195
1,000 6.250%, 12/01/32 (Pre-refunded 12/01/12) 12/12 at 100.00 BBB (3) 1,124,640
1,550 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 1,613,876
Medical Center, Series 2002, 5.500%, 5/15/32
1,660 Joliet Regional Port District, Illinois, Airport Facilities Revenue 7/07 at 103.00 N/R (3) 1,712,356
Bonds, Lewis University Airport, Series 1997A, 7.250%, 7/01/18
(Pre-refunded 7/01/07) (Alternative Minimum Tax)
1,305 North Chicago, Illinois, General Obligation Bonds, Series 2005B, 11/15 at 100.00 AAA 1,388,115
5.000%, 11/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
7,325 Total Illinois 7,759,207
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.9%
2,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/12 at 101.00 Baa1 2,161,340
Bonds, Riverview Hospital, Series 2002, 6.125%, 8/01/31
1,255 Whitley County, Indiana, Solid Waste and Sewerage Disposal 11/10 at 102.00 N/R 1,355,551
Revenue Bonds, Steel Dynamics Inc., Series 1998,
7.250%, 11/01/18 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,255 Total Indiana 3,516,891
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
1,440 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 1,787,400
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14
160 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call N/R (3) 198,997
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
1,600 Total Louisiana 1,986,397
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.1%
1,000 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 998,970
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.9%
500 Massachusetts Development Finance Agency, Resource Recovery 12/09 at 102.00 BBB 535,335
Revenue Bonds, Ogden Haverhill Associates, Series 1999A,
6.700%, 12/01/14 (Alternative Minimum Tax)
270 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 279,874
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.450%, 12/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
770 Total Massachusetts 815,209
------------------------------------------------------------------------------------------------------------------------------------
25
Nuveen Municipal Income Fund, Inc. (NMI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.7%
$ 1,000 Delta County Economic Development Corporation, Michigan, 4/12 at 100.00 AAA $ 1,102,330
Environmental Improvement Revenue Refunding Bonds,
MeadWestvaco Corporation - Escanaba Paper Company,
Series 2002B, 6.450%, 4/15/23 (Pre-refunded 4/15/12)
(Alternative Minimum Tax)
2,150 Michigan State Hospital Finance Authority, Hospital Revenue 7/07 at 101.00 Ba3 2,170,683
Refunding Bonds, Sinai Hospital, Series 1995, 6.625%, 1/01/16
------------------------------------------------------------------------------------------------------------------------------------
3,150 Total Michigan 3,273,013
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 5.0%
4,450 Missouri Environmental Improvement and Energy Resources 12/16 at 100.00 AAA 4,427,083
Authority, Water Facility Revenue Bonds, Missouri-American
Water Company, Series 2006, 4.600%, 12/01/36 -
AMBAC Insured (Alternative Minimum Tax) (UB)
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 1.4%
1,200 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 B2 1,241,160
Stillwater Mining Company, Series 2000, 8.000%, 7/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.2%
1,000 Washington County, Nebraska, Wastewater Facilities Revenue 11/12 at 101.00 A 1,091,630
Bonds, Cargill Inc., Series 2002, 5.900%, 11/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.0%
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AA 1,082,080
Brooklyn Law School, Series 2003A, 5.500%, 7/01/15 -
RAAI Insured
3,970 Yates County Industrial Development Agency, New York, 2/11 at 101.00 AAA 4,273,028
FHA-Insured Civic Facility Mortgage Revenue Bonds,
Soldiers and Sailors Memorial Hospital, Series 2000A,
6.000%, 2/01/41
------------------------------------------------------------------------------------------------------------------------------------
4,970 Total New York 5,355,108
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.3%
1,000 Erie County, Ohio, Hospital Facilities Revenue Bonds, Firelands 8/16 at 100.00 A 1,045,390
Regional Medical Center, Series 2006, 5.250%, 8/15/46
2,300 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 2,378,499
Revenue Bonds, Bay Shore Power, Series 1998B,
6.625%, 9/01/20 (Alternative Minimum Tax)
400 Ohio Water Development Authority, Solid Waste Disposal 9/07 at 100.00 A 408,516
Revenue Bonds, BHP Steel LLC, Series 1995, 6.300%, 9/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,700 Total Ohio 3,832,405
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.4%
1,080 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 Ba3 1,275,264
Revenue Bonds, West Penn Allegheny Health System,
Series 2000B, 9.250%, 11/15/30
840 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 873,172
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,920 Total Pennsylvania 2,148,436
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.7%
500 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 539,760
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.9%
$ 2,500 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- $ 2,723,975
Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/13
475 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 599,122
Revenue Bonds, Series 1991, 6.750%, 1/01/19 -
FGIC Insured (ETM)
1,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 1,063,580
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
3,975 Total South Carolina 4,386,677
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.4%
1,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Ba2 1,028,590
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.375%, 4/15/22
Shelby County Health, Educational and Housing Facilities Board,
Tennessee, Hospital Revenue Bonds, Methodist Healthcare, Series
2002:
375 6.500%, 9/01/26 (Pre-refunded 9/01/12) 9/12 at 100.00 A- (3) 425,693
625 6.500%, 9/01/26 (Pre-refunded 9/01/12) 9/12 at 100.00 A- (3) 709,488
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Tennessee 2,163,771
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.3%
1,500 Cameron Education Finance Corporation, Texas, Charter School 8/16 at 100.00 A 1,588,065
Revenue Bonds, Faith Family Academy Charter School,
Series 2006A, 5.250%, 8/15/36 - ACA Insured
2,000 Gulf Coast Waste Disposal Authority, Texas, Sewerage and 4/12 at 100.00 A1 2,155,780
Solid Waste Disposal Revenue Bonds, Anheuser Busch
Company, Series 2002, 5.900%, 4/01/36 (Alternative
Minimum Tax)
2,000 Matagorda County Navigation District 1, Texas, Collateralized 10/13 at 101.00 AAA 2,001,120
Revenue Refunding Bonds, Houston Light and Power
Company, Series 1995, 4.000%, 10/15/15 - MBIA Insured
Weslaco Health Facilities Development Corporation, Texas,
Hospital Revenue Bonds, Knapp Medical Center, Series 2002:
2,000 6.250%, 6/01/25 6/12 at 100.00 BBB+ 2,153,200
50 6.250%, 6/01/32 6/12 at 100.00 BBB+ 53,807
1,000 West Texas Independent School District, McLennan and 8/13 at 51.84 AAA 391,590
Hill Counties, General Obligation Refunding Bonds,
Series 1998, 0.000%, 8/15/25
------------------------------------------------------------------------------------------------------------------------------------
8,550 Total Texas 8,343,562
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 3.0%
2,545 Virgin Islands Public Finance Authority, Senior Lien Matching 10/14 at 100.00 BBB 2,720,452
Fund Loan Note, Series 2004A, 5.250%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 3.1%
1,000 Chesterfield County Industrial Development Authority, 11/10 at 102.00 Baa1 1,072,090
Virginia, Pollution Control Revenue Bonds, Virginia Electric
and Power Company, Series 1987A, 5.875%, 6/01/17
1,500 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 Baa1 1,674,045
Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP,
Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,500 Total Virginia 2,746,135
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.4%
2,050 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 2,156,826
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
27
Nuveen Municipal Income Fund, Inc. (NMI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION PROVISIONS (1) RATINGS (2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.2%
$ 1,000 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 100.00 BBB $ 1,078,310
Bonds, Carroll College Inc., Series 2001, 6.250%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 91,145 Total Investments (cost $83,927,790) - 100.9% 90,034,205
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligation - (3.3)% (2,965,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 2,196,186
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 89,265,391
====================================================================================================================
(1) 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. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(2) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(3) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
28
Statement of
ASSETS AND LIABILITIES April 30, 2007 (Unaudited)
MUNICIPAL VALUE MUNICIPAL INCOME
(NUV) (NMI)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,851,914,408 and $83,927,790, respectively) $2,017,785,590 $90,034,205
Cash -- 720,520
Receivables:
Interest 28,773,558 1,380,190
Investments sold 8,932,500 1,170,000
Other assets 180,469 6,696
------------------------------------------------------------------------------------------------------------------------------------
Total assets 2,055,672,117 93,311,611
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 4,861,810 --
Floating rate obligations 22,385,000 2,965,000
Payable for investments purchased 15,060,983 1,010,905
Accrued expenses:
Management fees 840,463 46,338
Other 482,992 23,977
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 43,631,248 4,046,220
------------------------------------------------------------------------------------------------------------------------------------
Net assets $2,012,040,869 $89,265,391
====================================================================================================================================
Shares outstanding 195,047,442 8,116,655
====================================================================================================================================
Net asset value per share outstanding $ 10.32 $ 11.00
====================================================================================================================================
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Shares, $.01 par value per share $ 1,950,474 $ 81,167
Paid-in surplus 1,838,602,931 90,857,187
Undistributed (Over-distribution of) net investment income 3,628,471 217,832
Accumulated net realized gain (loss) from investments 1,987,811 (7,997,210)
Net unrealized appreciation (depreciation) of investments 165,871,182 6,106,415
------------------------------------------------------------------------------------------------------------------------------------
Net assets $2,012,040,869 $89,265,391
====================================================================================================================================
Authorized shares 350,000,000 200,000,000
====================================================================================================================================
See accompanying notes to financial statements.
29
Statement of
OPERATIONS Six Months Ended April 30, 2007 (Unaudited)
MUNICIPAL VALUE MUNICIPAL INCOME
(NUV) (NMI)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 51,392,203 $2,490,495
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 5,066,027 281,124
Shareholders' servicing agent fees and expenses 186,893 10,911
Floating rate obligations interest expense and fees 241,491 38,529
Custodian's fees and expenses 194,028 13,360
Directors' fees and expenses 19,688 952
Professional fees 34,442 311
Shareholders' reports - printing and mailing expenses 124,501 10,861
Stock exchange listing fees 34,879 4,809
Investor relations expense 145,533 7,314
Other expenses 24,605 4,419
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 6,072,087 372,590
Custodian fee credit (81,266) (10,683)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,990,821 361,907
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 45,401,382 2,128,588
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 1,987,280 144,496
Change in net unrealized appreciation (depreciation) of investments (11,136,484) (535,139)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (9,149,204) (390,643)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ 36,252,178 $1,737,945
====================================================================================================================================
See accompanying notes to financial statements.
30
Statement of
CHANGES IN NET ASSETS (Unaudited)
MUNICIPAL VALUE (NUV) MUNICIPAL INCOME (NMI)
------------------------------------- -------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
4/30/07 10/31/06 4/30/07 10/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 45,401,382 $ 91,775,181 $ 2,128,588 $ 4,289,299
Net realized gain (loss) from investments 1,987,280 5,082,823 144,496 60,517
Change in net unrealized appreciation (depreciation)
of investments (11,136,484) 45,688,581 (535,139) 1,228,860
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 36,252,178 142,546,585 1,737,945 5,578,676
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (45,756,842) (92,001,408) (2,108,101) (4,120,226)
From accumulated net realized gains (5,325,986) (3,977,174) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions
to shareholders (51,082,828) (95,978,582) (2,108,101) (4,120,226)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 907,356 -- 30,571 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
capital share transactions 907,356 -- 30,571 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (13,923,294) 46,568,003 (339,585) 1,458,450
Net assets at the beginning of period 2,025,964,163 1,979,396,160 89,604,976 88,146,526
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $2,012,040,869 $2,025,964,163 $89,265,391 $89,604,976
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the end of period $ 3,628,471 $ 3,983,931 $ 217,832 $ 197,345
====================================================================================================================================
See accompanying notes to financial statements.
31
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The 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). The Funds are registered under the Investment
Company Act of 1940, as amended, as closed-end, diversified management
investment companies.
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 or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment 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 market
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service may establish fair 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, evaluations of
anticipated cash flows or collateral and general market conditions. If the
pricing service is unable to supply a price for a municipal bond, each Fund may
use a market price or fair market value quote provided by a major broker/dealer
in such investments. If it is determined that the market price or fair market
value for an investment is unavailable or inappropriate, the Board of Directors
of the Funds, or its designee, may establish a fair value for the investment.
Temporary investments in securities that have variable rate and demand features
qualifying them as short-term investments are valued at amortized cost, which
approximates market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At April 30, 2007, Municipal
Value (NUV) and Municipal Income (NMI) had outstanding when-issued/delayed
delivery purchase commitments of $15,060,983 and $1,010,905, respectively.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. 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. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
Dividends and Distributions to Shareholders
Dividends from tax-exempt net investment income are declared monthly. 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, if any, 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 U.S. generally accepted
accounting principles.
32
Derivative Financial Instruments
The Funds are authorized to 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 instruments, and may do so in the future, they did not invest in
any such instruments during the six months ended April 30, 2007.
Inverse Floating Rate Securities
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). An investment in an externally-deposited
inverse floater is identified in the Portfolio of Investments as an "Inverse
floating rate investment". An investment in a self-deposited inverse floater is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Floating
rate obligations interest expense and fees" in the Statement of Operations.
During the six months ended April 30, 2007, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended April 30, 2007, were as follows:
MUNICIPAL MUNICIPAL
VALUE (NUV) INCOME (NMI)
--------------------------------------------------------------------------------
Average floating rate obligations $12,702,348 $2,031,271
Average annual interest rate and fees 3.83% 3.83%
================================================================================
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.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
2. FUND SHARES
Transactions in shares were as follows:
MUNICIPAL VALUE (NUV) MUNICIPAL INCOME (NMI)
------------------------ -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/07 10/31/06 4/30/07 10/31/06
----------------------------------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment of distributions 87,922 -- 2,779 --
==========================================================================================================
33
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended April 30, 2007, were as follows:
MUNICIPAL MUNICIPAL
VALUE (NUV) INCOME (NMI)
--------------------------------------------------------------------------------
Purchases $81,076,608 $5,494,030
Sales and maturities 70,246,540 3,399,000
================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount, timing differences in recognizing
certain gains and losses on investments transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No. 140. To
the extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At April 30, 2007, the cost of investments was as follows:
MUNICIPAL MUNICIPAL
VALUE (NUV) INCOME (NMI)
--------------------------------------------------------------------------------
Cost of investments $1,825,486,851 $80,880,771
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2007, were as follows:
MUNICIPAL MUNICIPAL
VALUE (NUV) INCOME (NMI)
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $170,277,565 $6,226,282
Depreciation (346,731) (37,889)
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $169,930,834 $6,188,393
================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2006, the Funds' last tax year
end, were as follows:
MUNICIPAL MUNICIPAL
VALUE (NUV) INCOME (NMI)
--------------------------------------------------------------------------------
Undistributed net tax-exempt income * $7,591,414 $401,405
Undistributed net ordinary income ** 132,881 62,951
Undistributed net long-term capital gains 5,326,517 --
================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 2, 2006, paid on November 1, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
34
The tax character of distributions paid during the Funds' last tax year ended
October 31, 2006, was designated for purposes of the dividends paid deduction as
follows:
MUNICIPAL MUNICIPAL
VALUE (NUV) INCOME (NMI)
--------------------------------------------------------------------------------
Distributions from net tax-exempt income $91,241,065 $4,121,849
Distributions from net ordinary income ** 760,342 14,605
Distributions from net long-term capital gains 3,977,174 --
================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At October 31, 2006, the Funds' last tax year end, Municipal Income (NMI) had
unused capital loss carryforwards of $8,141,706 available for federal income tax
purposes to be applied against future capital gains, if any. If not applied,
$53,820, $7,005,363, $916,759 and $165,764 of the carryforward will expire in
the years 2008, 2011, 2012 and 2013, respectively.
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., ("Nuveen"), a specific fund-level component, based only on
the amount of assets within each individual fund, and for Municipal Value (NUV)
a gross interest income component. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
Municipal Value's (NUV) annual fund-level fee, payable monthly, at the rates set
forth below, are based upon the average daily net assets of the Fund as follows:
MUNICIPAL VALUE (NUV)
AVERAGE DAILY NET ASSETS FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $500 million .1500%
For the next $500 million .1250
For net assets over $1 billion .1000
================================================================================
In addition, Municipal Value (NUV) pays an annual management fee, payable
monthly, based on gross interest income as follows:
MUNICIPAL VALUE (NUV)
GROSS INTEREST INCOME GROSS INCOME FEE RATE
--------------------------------------------------------------------------------
For the first $50 million 4.125%
For the next $50 million 4.000
For gross income over $100 million 3.875
================================================================================
Municipal Income's (NMI) annual fund-level fee, payable monthly, at the rates
set forth below, are based upon the average daily net assets of the Fund as
follows:
MUNICIPAL INCOME (NMI)
AVERAGE DAILY NET ASSETS FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
35
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee and Municipal Value's (NUV) gross interest income fee, for all
Nuveen sponsored funds in the U.S., is based on the aggregate amount of total
fund assets managed as stated in the table below. As of April 30, 2007, the
complex-level fee rate was .1824%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors who are affiliated with the
Adviser or to its Officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Directors has
adopted a deferred compensation plan for independent Directors that enables
Directors to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Funds' tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. Recent SEC guidance allows funds
to delay implementing FIN 48 into NAV calculations until the fund's last NAV
calculation in the first required financial statement reporting period. As a
result, the Funds must begin to incorporate FIN 48 into their NAV calculations
by October 31, 2007. At this time, management is continuing to evaluate the
implications of FIN 48 and does not expect the adoption of FIN 48 will have a
significant impact on the net assets or results of operations of the Funds.
36
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of April 30, 2007, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENTS
Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on June 1, 2007, to shareholders of record on May 15,
2007, as follows:
MUNICIPAL MUNICIPAL
VALUE (NUV) INCOME (NMI)
--------------------------------------------------------------------------------
Dividend per share $.0390 $.0420
================================================================================
Agreement and Plan of Merger
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with an investor
group majority-led by Madison Dearborn Partners, LLC. Madison Dearborn Partners,
LLC is a private equity investment firm based in Chicago, Illinois. The investor
group includes affiliates of Merrill Lynch, Wachovia, Citigroup, Deutsche Bank
and Morgan Stanley. It is anticipated that Merrill Lynch and its affiliates will
be indirect "affiliated persons" (as that term is defined in the Investment
Company Act of 1940) of the Funds. Under the terms of the merger, each
outstanding share of Nuveen Investments' common stock (other than dissenting
shares) will be converted into the right to receive a specified amount of cash,
without interest. The merger is expected to be completed by the end of the year,
subject to customary conditions, including obtaining the approval of Nuveen
Investments shareholders, obtaining necessary fund and client consents
sufficient to satisfy the terms of the Merger Agreement, and expiration of
certain regulatory waiting periods. The obligations of Madison Dearborn
Partners, LLC to consummate the merger are not conditioned on its obtaining
financing. The Merger Agreement includes a "go shop" provision through July 19,
2007 during which Nuveen Investments may actively solicit and negotiate
competing takeover proposals.
The consummation of the merger will be deemed to be an "assignment" (as defined
in the 1940 Act) of the investment management agreement between each Fund and
the Adviser, and will result in the automatic termination of each Fund's
agreement. Prior to the consummation of the merger, it is anticipated that the
Board of Trustees of each Fund will consider a new investment management
agreement with the Adviser. If approved by the Board, the new agreement would be
presented to the Fund's shareholders for approval, and, if so approved by
shareholders, would take effect upon consummation of the merger. There can be no
assurance that the merger described above will be consummated as contemplated or
that necessary shareholder approvals will be obtained.
37
Financial
HIGHLIGHTS (Unaudited)
Selected data for a share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------- -----------------------------
Beginning Net Net Realized/ Net Ending
Net Asset Investment Unrealized Investment Capital Net Asset Ending
Value Income Gain (Loss) Total Income Gains Total Value Market Value
------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL VALUE (NUV)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $10.39 $.23 $(.04) $.19 $(.23) $(.03) $(.26) $10.32 $10.20
2006 10.15 .47 .26 .73 (.47) (.02) (.49) 10.39 10.16
2005 10.11 .47 .10 .57 (.47) (.06) (.53) 10.15 9.58
2004 9.92 .48 .26 .74 (.49) (.06) (.55) 10.11 9.36
2003 9.98 .49 (.01) .48 (.50) (.04) (.54) 9.92 9.12
2002 10.17 .51 (.18) .33 (.51) (.01) (.52) 9.98 9.32
MUNICIPAL INCOME (NMI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 11.04 .26 (.04) .22 (.26) -- (.26) 11.00 10.87
2006 10.86 .53 .16 .69 (.51) -- (.51) 11.04 10.50
2005 10.76 .54 .09 .63 (.53) -- (.53) 10.86 10.56
2004 10.41 .56 .32 .88 (.53) -- (.53) 10.76 10.08
2003 10.61 .54 (.15) .39 (.59) -- (.59) 10.41 9.64
2002 10.92 .61 (.30) .31 (.62) -- (.62) 10.61 9.90
====================================================================================================================================
Total Returns
---------------------------
Based on Based on
Market Net Asset
Value+ Value+
--------------------------------------------------
MUNICIPAL VALUE (NUV)
--------------------------------------------------
Year Ended 10/31:
2007(b) 2.97% 1.87%
2006 11.51 7.40
2005 8.25 5.73
2004 9.01 7.77
2003 3.66 4.90
2002 3.80 3.32
MUNICIPAL INCOME (NMI)
--------------------------------------------------
Year Ended 10/31:
2007(b) 6.03 2.01
2006 4.42 6.50
2005 10.21 5.93
2004 10.34 8.69
2003 3.02 3.71
2002 (11.93) 2.87
==================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Before Credit/Refund After Credit/Refund**
----------------------------------------- ------------------------------------------
Ending Expenses Expenses Net Expenses Expenses Net Portfolio
Net Assets Including Excluding Investment Including Excluding Investment Turnover
(000) Interest(a) Interest(a) Income Interest(a) Interest(a) Income Rate
------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL VALUE (NUV)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $2,012,041 .61%* .58%* 4.53%* .60%* .57%* 4.54%* 4%
2006 2,025,964 .59 .59 4.60 .59 .59 4.61 6
2005 1,979,396 .60 .60 4.64 .60 .60 4.65 8
2004 1,971,925 .62 .62 4.83 .61 .61 4.84 13
2003 1,934,433 .64 .64 4.97 .64 .64 4.97 36
2002 1,946,407 .65 .65 5.07 .65 .65 5.08 13
MUNICIPAL INCOME (NMI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 89,265 .84* .75* 4.78* .82* .73* 4.80* 4
2006 89,605 .76 .76 4.83 .73 .73 4.86 6
2005 88,147 .78 .78 4.99 .77 .77 5.00 7
2004 87,324 .82 .82 5.28 .81 .81 5.28 14
2003 84,491 1.12 1.12 5.14 1.12 1.12 5.14 10
2002 85,897 .91 .91 5.62 .90 .90 5.64 36
====================================================================================================================================
Floating Rate Obligations
at End of Period
-----------------------------
Aggregate
Amount Asset
Outstanding Coverage
(000) Per $1,000
------------------------------------------
MUNICIPAL VALUE (NUV)
------------------------------------------
Year Ended 10/31:
2007(b) $22,385 $90,883
2006 -- --
2005 -- --
2004 -- --
2003 -- --
2002 -- --
MUNICIPAL INCOME (NMI)
------------------------------------------
Year Ended 10/31:
2007(b) 2,965 31,106
2006 -- --
2005 -- --
2004 -- --
2003 -- --
2002 -- --
==========================================
* Annualized.
** After custodian fee credit and legal fee refund, where applicable.
+ Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Net Asset Value is the
combination of changes in net asset value, reinvested dividend income at
net asset value and reinvested capital gains distributions at net asset
value, if any. Total returns are not annualized.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2007.
See accompanying notes to financial statements.
38-39 spread
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End 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
greater of the net asset value or 95% of 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. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. 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 the 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.
40
FLEXIBLE
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.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
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.
41
Glossary of
TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of
the bonds in a Fund's portfolio, computed by weighting each bond's time to
maturity (the date the security comes due) by the market value of the security.
This figure does not account for the likelihood of prepayments or the exercise
of call provisions unless an escrow account has been established to redeem the
bond before maturity. The market value weighting for an investment in an inverse
floating rate security is the value of the portfolio's residual interest in the
inverse floating rate trust, and does not include the value of the floating rate
securities issued by the trust.
INVERSE FLOATERS: Inverse floating rate securities are created by depositing a
municipal bond, typically with a fixed interest rate, into a special purpose
trust created by a broker-dealer. This trust, in turn, (a) issues floating rate
certificates typically paying short-term tax-exempt interest rates to third
parties in amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate (sometimes
referred to as an "inverse floater") to an investor (such as a Fund) interested
in gaining investment exposure to a long-term municipal bond. The income
received by the holder of the inverse floater varies inversely with the
short-term rate paid to the floating rate certificates' holders, and in most
circumstances the holder of the inverse floater bears substantially all of the
underlying bond's downside investment risk. The holder of the inverse floater
typically also benefits disproportionately from any potential appreciation of
the underlying bond's value. Hence, an inverse floater essentially represents an
investment in the underlying bond on a leveraged basis.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
42
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2006, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
For Funds listed on the New York Stock Exchange, each Fund's Chief Executive
Officer has submitted to the Exchange the annual CEO certification as required
by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carol E. Stone
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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 period covered by this report. Any future repurchases
will be reported to shareholders in the next annual or semiannual report.
43
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $166 billion in assets, as of March 31, 2007, Nuveen Investments offers
access to a number of different asset classes and investing solutions through a
variety of products. Nuveen Investments markets its capabilities under six
distinct brands: NWQ, specializing in value-style equities; Nuveen, managing
fixed-income investments; Santa Barbara, committed to growth equities;
Tradewinds, specializing in global value equities; Rittenhouse, focused on
"blue-chip" growth equities; and Symphony, with expertise in alternative
investments as well as equity and income portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/CEF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-A-0407D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Municipal Income Fund, Inc.
-----------------------------------------------------------
By (Signature and Title)* /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: July 9, 2007
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: July 9, 2007
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 9, 2007
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.