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<SEC-DOCUMENT>0000930413-04-000005.txt : 20040102
<SEC-HEADER>0000930413-04-000005.hdr.sgml : 20040101
<ACCEPTANCE-DATETIME>20040102100649
ACCESSION NUMBER:		0000930413-04-000005
CONFORMED SUBMISSION TYPE:	N-CSR
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20031031
FILED AS OF DATE:		20040102
EFFECTIVENESS DATE:		20040102

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PIMCO MUNICIPAL INCOME FUND II
		CENTRAL INDEX KEY:			0001170299
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		N-CSR
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21076
		FILM NUMBER:		04500226

	BUSINESS ADDRESS:	
		STREET 1:		1345 AVENUE OF THE AMERICAS, 47TH FL
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10105
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSR
<SEQUENCE>1
<FILENAME>c29840_ncsr.txt
<TEXT>


                                  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 811-07532
                                   ---------


                          Municipal Advantage Fund Inc.
               --------------------------------------------------
               (Exact name of registrant as specified in charter)


              1345 Avenue of the Americas, New York, New York 10105
              -----------------------------------------------------
              (Address of principal executive offices) (Zip code)


   Brian S. Shlissel - 1345 Avenue of the Americas, New York, New York 10105
   -------------------------------------------------------------------------
                    (Name and address of agent for service)


Registrant's telephone number, including area code: 212-739-3371
                                                    ------------

Date of fiscal year end: October 31
                         ----------

Date of reporting period: October 31
                          ----------

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.


<PAGE>


ITEM 1.  REPORT TO SHAREHOLDERS


                                                                   Annual Report
                                                                        10.31.03


MUNICIPAL ADVANTAGE FUND INC.



[MAF LOGO]
                       CONTENTS

                       Letter to Shareholders .................................1
                       Performance Summary and Statistics .....................2
                       Schedule of Investments ..............................3-8
                       Statement of Assets and Liabilities ....................9
                       Statement of Operations ...............................10
                       Statement of Changes in Net Assets ....................11
                       Notes to Financial Statements ......................12-14
                       Financial Highlights ..................................15
                       Report of Independent Auditors ........................16
                       Tax Information, Dividend Reinvestment
                         and Cash Purchase Plan/Other Information ............17
                       Board of Directors ....................................18
                       Privacy Policy ........................................19



                                                                       P I M C O
                                                                       ---------
                                                                        ADVISORS

<PAGE>


MUNICIPAL ADVANTAGE FUND INC. LETTER TO SHAREHOLDERS



                                                                December 3, 2003



Dear Shareholder:

We are pleased to provide you with the annual report of Municipal Advantage Fund
Inc. (the "Fund") for the fiscal year ended October 31, 2003.

Please refer to the following  page for specific Fund  information.  If you have
any questions regarding the information provided,  please contact your financial
advisor or call our  shareholder  services area at  1-800-426-5523.  Please note
that a wide range of information  and resources can be accessed  through our Web
site, www.pimcoadvisors.com.

We at the Fund,  together with PIMCO  Advisors Fund  Management  LLC, the Fund's
investment manager and OpCap Advisors LLC, the Fund's investment adviser,  thank
you for investing with us. We remain dedicated to serving your investment needs.

Sincerely,


/s/ Stephen Treadway                          /s/ Brian S. Shlissel
- --------------------                          ---------------------
Stephen Treadway                              Brian S. Shlissel
CHAIRMAN                                      PRESIDENT, CHIEF EXECUTIVE OFFICER




                           | 10.31.03 | Municipal Advantage Fund Annual Report 1

<PAGE>


MUNICIPAL ADVANTAGE FUND INC. PERFORMANCE SUMMARY AND STATISTICS
October 31, 2003 (unaudited)


SYMBOL:                          PRIMARY INVESTMENTS:      INCEPTION DATE:
MAF                              Municipal fixed-income    April 30, 1993
                                 securities, the interest
OBJECTIVE:                       from which is exempt      TOTAL NET ASSETS (1):
Municipal Advantage Fund Inc.    from federal income tax.  $163.3 million
seeks a high level of current
income exempt from federal                                 PORTFOLIO MANAGER:
income tax.                                                Matthew Greenwald


AVERAGE ANNUAL TOTAL RETURN (2):                 Market Price              NAV
- --------------------------------------------------------------------------------
1 year                                           11.04%                    6.75%
3 years                                          12.47%                    8.68%
5 years                                          5.58%                     5.32%
10 years                                         6.23%                     6.02%


WEEKLY COMMON SHARE PRICE PERFORMANCE:         PORTFOLIO STATISTICS:
Commencement of Operations (4/30/93)           ---------------------------------
to 10/31/03                                    Market Price              $13.57
[ ] at Market Price                            ---------------------------------
[ ] at NAV                                     Net Asset Value           $14.93
                                               ---------------------------------
                                               Market Price Yield (3)     6.63%
                                               ---------------------------------


          [DATA BELOW REPRESENTS A LINE CHART IN THE ORIGINAL PIECE.]

      At Market
        Price         At NAV
      ---------       ------
4/30/93  15           14.04
         15           14.09
         15           14.08
         15           13.98
         15           14.1
         15           14.11
         15           14.17
         15           14.22
         15           14.33
         15           14.23
         15           14.26
         14.75        14.21
         14.75        13.96
         14.375       14.06
         14.25        14.16
         14.625       14.36
         14.5         14.52
         14.5         14.57
         14.75        14.73
         14.5         14.91
         14.25        14.76
         14.125       14.73
         14.5         14.74
         14.375       14.81
         14.375       14.98
         14.25        14.84
         14.125       14.75
         14.125       14.38
         14           14.4
         13.875       14.29
         13.625       14.37
         14           14.46
         14.125       14.63
         13.5         14.53
         13.875       14.63
         13.875       14.64
         13.875       14.67
         14.125       14.61
         14           14.67
         13.875       14.85
         13.875       14.72
         13.875       14.55
         13.625       14.35
         13.375       14.06
         13.125       13.7
         13.125       13.53
         13           13.64
         12.75        13.46
         12.25        12.89
         12           12.8
         11.875       12.74
         12           12.88
         12           12.83
         11.875       12.65
         11.875       12.6
         11.75        12.84
         11.875       13.04
         12.375       13.27
         12.25        13.35
         12.125       13.12
         12           12.83
         11.875       12.69
         11.75        12.69
         11.625       12.84
         11.25        12.89
         11.5         13.1
         11.375       12.95
         11.125       12.72
         11.125       12.89
         11           12.97
         11.125       13.08
         11           12.77
         10.625       12.61
         10.125       12.49
         10.25        12.44
         10.375       12.22
         10.375       12.38
         10           12.16
         9.875        11.79
         9.5          11.32
         9            10.95
         9.625        10.8
         10.125       11.02
         10.25        11.54
         10.125       11.52
         10           11.76
         9.875        11.7
         9.875        11.79
         10.5         11.86
         10.375       12.07
         10.375       12.06
         10.875       12.25
         11.375       12.66
         11.25        12.71
         11           12.8
         11.25        12.95
         11.375       12.95
         11.375       12.9
         11.125       13.1
         11.25        13.09
         11.25        13.12
         11.375       13.29
         11.375       13.31
         11.25        13.31
         11.125       12.99
         11.125       13.24
         11.5         13.3
         11.375       13.42
         11.5         13.59
         11.875       13.82
         11.625       13.54
         11.625       13.31
         11.625       13.58
         11.5         13.21
         11.625       13.53
         11.75        13.59
         11.75        13.13
         11.125       13.21
         11.375       13.13
         11.375       12.94
         11.25        12.95
         11.25        13.17
         11.375       13.46
         11.375       13.52
         11.25        13.59
         11.375       13.31
         11.25        13.44
         11.375       13.6
         11.5         13.78
         11.625       13.73
         11.5         13.72
         11.625       13.89
         11.75        13.8
         11.625       13.91
         11.75        13.92
         12.125       14.19
         12           14.3
         11.875       14.1
         11.875       14.19
         11.875       14.33
         12           14.24
         12           14.15
         12.125       14.29
         12.25        14.23
         12.375       14.29
         12.5         14.42
         12.25        14.29
         12.125       14.13
         12           14.1
         11.5         13.65
         11.375       13.31
         11.625       13.58
         11.5         13.6
         11.625       13.55
         11.25        13.42
         11.375       13.52
         11.375       13.53
         11.125       13.19
         11.25        13.37
         11.375       13.53
         11.375       13.61
         11.375       13.36
         11.25        13.2
         11.125       13.26
         11.25        13.28
         11.5         13.54
         11.125       13.19
         11.125       13.49
         11.375       13.57
         11.5         13.63
         12           13.88
         11.875       14.02
         11.75        13.86
         11.75        13.71
         11.625       13.58
         11.625       13.54
         11.625       13.79
         11.5         13.65
         11.75        13.84
         12           14.04
         11.875       13.89
         12           13.85
         11.875       13.77
         11.75        13.96
         11.875       14.07
         12           14.04
         12.125       14.11
         12.125       14.26
         12           14.08
         11.875       13.97
         11.625       13.99
         11.75        14.08
         11.875       13.98
         11.875       13.84
         11.875       13.82
         12           13.81
         11.875       13.93
         12.125       14.09
         12           14.2
         12.125       14.14
         12.125       14.04
         12.25        14
         12.125       13.87
         12.25        13.82
         12.25        13.68
         12.125       13.64
         11.875       13.55
         11.875       13.65
         12.125       13.64
         12.25        13.86
         12.25        13.94
         12.25        13.97
         12.25        14
         12.25        14.05
         12.375       14.19
         12.625       14.31
         12.625       14.34
         12.625       14.22
         13.25        14.51
         13.25        14.55
         13.0625      14.67
         13.125       14.64
         13.1875      14.45
         13.0625      14.39
         12.875       14.34
         13           14.4
         13.25        14.43
         13.25        14.42
         13.0625      14.55
         13.4375      14.56
         13.5         14.63
         13.1875      14.47
         13.375       14.37
         13.3125      14.47
         13.1875      14.64
         13.1875      14.57
         13           14.56
         13.25        14.64
         13.25        14.67
         13.3125      14.76
         13.25        14.83
         13.625       14.91
         13.6875      14.94
         13.8125      14.97
         13.8125      15.18
         13.875       15.12
         13.75        14.99
         13.625       15.05
         13.75        15.02
         13.75        15.04
         13.8125      15.04
         13.6875      14.95
         13.5625      14.83
         13.9375      14.88
         13.625       14.94
         13.4375      14.92
         13.5         15.06
         13.5         14.88
         13.3125      14.77
         13.1875      14.75
         13.125       14.8
         13.0625      14.84
         13.1875      14.92
         13.25        15.01
         13.4375      15.01
         13.625       15.04
         13.625       14.98
         13.5         14.97
         13.5625      14.99
         13.6875      15.04
         13.5625      14.91
         13.625       14.96
         13.6875      14.96
         13.5625      15.02
         13.5         15.07
         13.6875      15.17
         13.625       15.26
         13.4375      15.19
         13.625       15.25
         13.5625      15.24
         13.6875      15.32
         14.1875      15.54
         14.0625      15.28
         14.1875      15.36
         14.125       15.2
         14.125       15.24
         14.1875      15.11
         14.1875      15.12
         14.1875      15.18
         14.375       15.19
         14.375       15.27
         14.25        15.32
         14.375       15.22
         14.25        15.09
         14.375       15.16
         14.4375      15.13
         14           15.14
         14.125       15.19
         14           15.3
         14.0625      15.19
         13.875       15.11
         13.9375      15.16
         13.875       15.11
         13.9375      15.06
         13.875       15.1
         13.625       15.09
         13.625       15.04
         13.75        15.01
         13.75        15.09
         13.375       15.01
         13.5         14.99
         13.25        14.96
         13.3125      14.88
         13.1875      14.71
         13.1875      14.75
         13.0625      14.71
         13           14.64
         12.5625      14.39
         12.625       14.41
         12.5         14.25
         12.75        14.32
         12.75        14.33
         12.75        14.37
         12.75        14.33
         12.875       14.21
         12.6875      13.98
         12.1875      13.7
         12.375       13.69
         12.375       13.84
         12.4375      13.76
         12.125       13.78
         12           13.66
         11.75        13.66
         11.875       13.52
         11.9375      13.47
         11.5625      13.22
         11.375       13.09
         11.75        13.18
         11.9375      13.41
         12           13.39
         12.25        13.38
         12.0625      13.34
         11.8125      13.3
         11.875       13.31
         11.6875      13.07
         11.4375      12.99
         11.5625      13.02
         11.6875      12.95
         11.75        12.84
         11.6875      12.77
         11.875       12.78
         12           12.87
         11.9375      12.84
         11.75        12.9
         11.375       13.01
         11.25        13.08
         11.0625      13.15
         11.0625      13.22
         11.125       13.43
         11.1875      13.43
         11.5         13.52
         11.3125      13.4
         11.4375      13.31
         11.4375      13.18
         11.3125      12.86
         11.125       12.73
         11.0625      12.7
         10.875       12.83
         11.3125      13.1
         11.1875      13.23
         11.25        13.36
         11.0625      13.33
         11.125       13.39
         11.5625      13.5
         11.6875      13.54
         11.5625      13.51
         11.5         13.57
         11.5         13.65
         11.6875      13.73
         11.75        13.72
         11.6875      13.81
         11.75        13.83
         11.875       13.85
         11.875       13.71
         11.75        13.62
         11.6875      13.6
         11.4375      13.59
         11.375       13.62
         11.3125      13.71
         11.375       13.75
         11.4375      13.73
         11.4375      13.7
         11.375       13.69
         11.3125      13.75
         11.375       13.85
         11.4375      14.08
         11.5         14.24
         11.875       14.35
         12.125       14.36
         12.4375      14.58
         12.5         14.54
         12.5625      14.53
         12.5625      14.35
         12.75        14.47
         12.95        14.49
         12.81        14.38
         12.8         14.35
         12.89        14.42
         12.84        14.48
         12.85        14.53
         12.7         14.57
         12.55        14.49
         12.57        14.43
         12.58        14.27
         12.4         14.1
         12.34        14.1
         12.44        14.09
         12.37        14.21
         12.39        14.16
         12.34        14.21
         12.34        14.22
         12.39        14.25
         12.33        14.29
         12.38        14.4
         12.45        14.36
         12.53        14.38
         12.7         14.34
         12.78        14.34
         12.67        14.33
         12.63        14.48
         12.72        14.55
         12.77        14.62
         12.97        14.71
         12.97        14.77
         13           14.81
         13.09        14.89
         13.08        14.87
         12.55        14.6
         12.75        14.66
         13.26        14.85
         12.94        14.71
         13           14.74
         13.05        14.82
         13.2         14.98
         13.2         14.67
         12.98        14.55
         13.01        14.54
         12.84        14.27
         12.61        14.18
         12.95        14.19
         12.96        14.22
         13.04        14.3
         13           14.5
         13.18        14.56
         13.12        14.44
         13.23        14.5
         13.31        14.57
         13.31        14.53
         13.12        14.64
         13.25        14.63
         13           14.37
         12.82        14.21
         12.63        14.14
         12.72        14.14
         12.66        14.26
         12.65        14.31
         12.66        14.29
         12.72        14.39
         12.76        14.4
         12.86        14.43
         13           14.33
         12.89        14.22
         12.79        14.37
         12.96        14.46
         13.09        14.48
         13.12        14.55
         13.18        14.58
         13.24        14.57
         13.3         14.59
         13.39        14.68
         13.35        14.73
         13.44        14.81
         13.53        14.79
         13.73        14.84
         13.48        14.81
         13.45        14.81
         13.55        14.9
         13.75        15.11
         13.85        15.13
         13.81        15.28
         13.82        15.3
         13.97        15.35
         13.97        15.31
         13.7         15.16
         12.95        14.64
         12.7         14.57
         13.15        14.81
         13.15        14.98
         13.1         14.76
         12.98        14.67
         13.09        14.64
         13.14        14.8
         13.09        14.81
         13.09        14.91
         13.23        15
         13.3         15.09
         13.25        15
         13.06        14.88
         12.96        14.83
         13.05        14.89
         13.24        14.88
         13.44        14.94
         13.47        14.92
         13.38        14.99
         13.47        15.19
         13.55        15.3
         13.59        15.22
         13.51        14.78
         13.62        15
         13.75        15.09
         13.76        14.99
         13.57        14.95
         13.7         15.04
         13.7         15.19
         13.97        15.23
         13.94        15.39
         14.18        15.56
         14.17        15.68
         14.31        15.6
         14.35        15.67
         14.35        15.79
         14.2         15.41
         14.18        15.29
         14.21        15.27
         14.11        15.21
         13.53        14.98
         13.49        14.82
         13.63        14.42
         13.51        14.68
         13.42        14.39
         13.41        14.46
         13.16        14.53
         13.41        14.63
         13.5         14.8
         13.68        14.91
         13.53        15
         13.55        14.93
         13.6         14.77
         13.4         14.71
         13.5         14.91
10/31/03 13.57        14.93

(1) Inclusive of net assets attributable to Preferred Shares outstanding.

(2) PAST  PERFORMANCE  IS NO  GUARANTEE  OF  FUTURE  RESULTS.  Total  return  is
determined by subtracting the initial  investment  from the redeemable  value at
the end of the period and dividing the remainder by the initial  investment  and
expressing the result as a percentage.  The calculation  assumes that all income
dividends  and capital gain  distributions  by the Fund have been  reinvested at
prices obtained under the Fund's dividend  reinvestment  plan.  Total investment
return does not reflect broker commissions or sales charges.  Total return for a
period of less than one year is not annualized.

An  investment  in the Fund  involves  risk,  including  the loss of  principal.
Investment return,  price, yield and net asset value will fluctuate with changes
in market  conditions.  This data is provided  for  information  only and is not
intended for trading purposes. A portion of the income generated by the Fund may
be subject to federal, state and local taxes, and may at times be subject to the
alternative  minimum tax.  Closed-end  funds,  unlike  open-end  funds,  are not
continuously  offered.  There is a one-time  public  offering  and once  issued,
shares of closed-end funds are sold in the open market through a stock exchange.
Net asset value is total assets  applicable  to common  shareholders  less total
liabilities  divided by the number of common  shares  outstanding.  Holdings are
subject to change daily.

(3) Market  Price Yield is  determined  by dividing the  annualized  current per
share  dividend  payable to common  shareholders  by the market price per common
share at October 31, 2003.


2 Municipal Advantage Fund Annual Report | 10.31.03 |


<PAGE>


MUNICIPAL ADVANTAGE FUND INC. SCHEDULE OF INVESTMENTS
October 31, 2003

<TABLE>
<CAPTION>
  Principal
   Amount                                                                  Credit Rating*
    (000)                                                                   (Moody's/S&P)       Value**
- ---------------------------------------------------------------------------------------------------------

<S>            <C>                                                           <C>             <C>
MUNICIPAL BONDS--98.3%

               ALABAMA--0.7%
  $1,000       State Docks Dept. Fac. Rev., 6.15%, 10/1/14 (MBIA) +            Aaa/AAA       $  1,125,540
                                                                                             ============
               ARIZONA--1.8%
   2,540       State Univ. Rev., 5.50%, 7/1/17 (FGIC)                          Aaa/AAA          2,804,846
                                                                                             ============
               CALIFORNIA--2.0%
   1,000       Burbank Redev. Agcy., 6.00%, 12/1/13                             A3/A-           1,024,110
   1,000       Foothill/Eastern Corridor Agcy., Toll Rd. Rev.,
                  5.75%, 1/15/40                                              Baa3/BBB-         1,011,630
   1,000       State Dept. Water Res. Rev.,
                  5.50%, 5/1/16, Ser. A (AMBAC)                                Aaa/AAA          1,105,950
                                                                                             ------------
                                                                                                3,141,690
                                                                                             ============
               COLORADO--4.0%
               Denver City & Cnty. Airpt. Rev., (MBIA),
   1,500          5.60%, 11/15/25, Ser. C +                                    Aaa/AAA          1,549,740
   3,000          5.75%, 11/15/17, Ser. B +                                    Aaa/AAA          3,266,160
   1,500       Denver Convention Center Auth. Rev., 5.00%, 12/1/21,
                  Ser. A (XLCA)                                                Aaa/AAA          1,541,820
                                                                                             ------------
                                                                                                6,357,720
                                                                                             ============
               DISTRICT OF COLUMBIA--1.4%
               State GO,
     955          5.25%, 6/1/27, Ser. A (MBIA)
                  (Pre-refunded @ 101, 6/1/08) ++                              Aaa/AAA            974,482
     145          5.25%, 6/1/27 Ser. A (MBIA)                                  Aaa/AAA            164,646
   1,000       World Wildlife Fund, 6.00%, 7/1/18, Ser. A (AMBAC)              Aaa/AAA          1,137,720
                                                                                             ------------
                                                                                                2,276,848
                                                                                             ============
               FLORIDA--0.7%
   1,000       Jacksonville Port. Auth. Airpt. Rev.,
                  6.25%, 10/1/24, Ser. A (FGIC) +                              Aaa/AAA          1,099,760
                                                                                             ============
               GEORGIA--2.6%
   1,000       Atlanta Dev. Auth. Rev., 5.25%, 7/1/12, Ser. A                   A3/NR           1,069,940
   1,750       Cherokee Cnty. Water & Sewer Auth. Rev.,
                  5.50%, 8/1/23 (MBIA)                                         Aaa/AAA          1,931,125
   1,050       Municipal Elec. Auth., 5.00%, 11/1/06, Ser. A (MBIA)            Aaa/AAA          1,150,695
                                                                                             ------------
                                                                                                4,151,760
                                                                                             ============
               HAWAII--2.7%
   1,000       State Airpt. Syst. Rev., 5.75%, 7/1/21, Ser. A (FGIC)           Aaa/AAA          1,093,410
   3,000       State Dept. of Budget & Finance, Hawaiian Elec. Co.,
                  5.75%, 12/1/18, Ser. B (AMBAC)+                              Aaa/AAA          3,262,830
                                                                                             ------------
                                                                                                4,356,240
                                                                                             ============
               ILLINOIS--9.1%
   1,145       Chicago O' Hare Intl. Airpt. Rev.,
                  5.50%, 1/1/15 (AMBAC)                                        Aaa/AAA          1,255,905
</TABLE>



                           | 10.31.03 | Municipal Advantage Fund Annual Report 3

<PAGE>


MUNICIPAL ADVANTAGE FUND INC. SCHEDULE OF INVESTMENTS
October 31, 2003

<TABLE>
<CAPTION>
  Principal
   Amount                                                                  Credit Rating*
    (000)                                                                   (Moody's/S&P)       Value**
- ---------------------------------------------------------------------------------------------------------

<S>            <C>                                                           <C>             <C>
               ILLINOIS--(CONTINUED)
  $1,000       Chicago Wastewater Transmission Rev.,
                  6.00%, 1/1/17, (MBIA) (Pre-refunded @ 101,
                  1/1/10) ++                                                   Aaa/AAA       $  1,177,260
   1,000       Chicago Water Rev., 5.25%, 11/1/17 (FGIC)                       Aaa/AAA          1,075,120
   1,000       Health Facs. Auth. Rev., Centegra Health Syst.,
                  5.25%, 9/1/24                                                 NR/A-             948,600
   1,000       Madison & St. Clair Cmnty. School Dist., GO,
                  5.50%, 2/1/16 (FGIC)                                         Aaa/AAA          1,105,240
   1,100       McHenry & Lake Cntys. Cmnty. High School Dist., GO,
                  5.125%, 1/1/19 (FGIC)                                         Aaa/NR          1,157,563
   2,500       Metropolitan Pier & Exposition Auth.,
                  5.25%, 6/15/27, Ser. A (AMBAC)                               Aaa/AAA          2,554,450
   1,005       Regional Transmission Auth.,
                  5.50%, 6/1/16, Ser. B (FGIC)                                 Aaa/AAA          1,135,861
   2,300       State GO, 5.50%, 4/1/16                                         Aaa/AAA          2,532,323
   1,500       State Sales Tax Rev., 5.375%, 6/15/16                           Aa3/AAA          1,644,990
                                                                                             ------------
                                                                                               14,587,312
                                                                                             ============
               INDIANA--2.5%
   1,000       Indianapolis Local Pub. Impt., 5.00%, 2/1/17, Ser. A            Aaa/AAA          1,054,540
   1,040       Indianapolis Marion Cnty. Pub., GO, 5.00%, 7/1/20               Aa2/AAA          1,067,914
   1,795       Merrillville School Bldg. Corp., 5.00%, 1/5/21 (MBIA)           Aaa/AAA          1,837,380
                                                                                             ------------
                                                                                                3,959,834
                                                                                             ============
               KENTUCKY--2.0%
   1,000       Louisville & Jefferson Cnty. Metropolitan Sewer
                  & Drain Syst., 6.50%, 5/15/24, Ser. A (AMBAC)
                  (Pre-refunded @ 102, 11/15/04) ++                            Aaa/AAA          1,076,250
   2,125       Louisville & Jefferson Cnty. Reg. Airpt. Auth. Syst. Rev.,
                  5.375%, 7/1/23, Ser. A (FSA) +                               Aaa/AAA          2,174,194
                                                                                             ------------
                                                                                                3,250,444
                                                                                             ============
               LOUISIANA--1.0%
   1,500       New Orleans GO, 6.125%, 10/1/16 (AMBAC)                         Aaa/AAA          1,640,940
                                                                                             ============
               MASSACHUSETTS--7.5%
     540       State College Bldg. Auth. Proj. Rev.,
                  5.625%, 5/1/16, Ser. A (MBIA)                                 Aaa/NR            626,092
   1,500       State GO, 5.50%, 11/1/20 Ser. C                                  Aa2/AA-         1,707,795
               State Health & Educ. Fac. Auth. Rev.,
   1,000          5.125%, 7/1/19, Ser. B                                        Aa3/AA-         1,023,800
   2,250          6.25%, 12/1/22, Ser. G-1                                       A2/A           2,358,270
   5,000       State Higher Educ. Dev. Fin. Agy. Rev., Smith College,
                  5.75%, 7/1/29                                                 Aa1/AA          5,870,950
               State Water Poll. Abatement Trust, Ser. A,
     300          6.375%, 2/1/15 (Pre-refunded @ 102, 2/1/04)++                Aaa/AA+            310,020
      90          6.375%, 2/1/15                                               Aaa/AA+             92,912
                                                                                             ------------
                                                                                               11,989,839
                                                                                             ============
</TABLE>



4 Municipal Advantage Fund Annual Report | 10.31.03 |


<PAGE>


MUNICIPAL ADVANTAGE FUND INC. SCHEDULE OF INVESTMENTS
October 31, 2003

<TABLE>
<CAPTION>
  Principal
   Amount                                                                  Credit Rating*
    (000)                                                                   (Moody's/S&P)       Value**
- ---------------------------------------------------------------------------------------------------------

<S>            <C>                                                           <C>             <C>
               MICHIGAN--5.9%
  $1,065       Bloomingdale Pub. School Dist., No. 16, GO,
                  5.50%, 5/1/19                                                Aaa/AAA       $  1,167,922
   1,400       Garden City School Dist., GO, 5.50%, 5/1/17                     Aaa/AAA          1,547,980
   2,000       Grand Valley Univ. Rev., 5.50%, 2/1/18 (FGIC)                   NR/AAA           2,261,600
   1,075       Lincoln School Dist., GO, 5.50%, 5/1/19                         Aaa/AAA          1,178,888
   2,000       State Hospital Fin. Auth. Rev.,
                  8.125%, 10/1/21 (Pre-refunded @ 102, 10/1/05) ++              NR/AAA          2,296,340
   1,000       State Poll. Control. Rev., Gen. Motors Corp.,
                  6.20%, 9/1/20                                                Baa1/BBB         1,027,140
                                                                                             ------------
                                                                                                9,479,870
                                                                                             ============
               NEVADA--3.4%
   1,100       Clark Cnty. Park & Regl. Justice Ctr., 5.50%, 11/1/17            Aa2/AA          1,220,604
   2,000       Clark Cnty. Passenger Fac. Charge Rev.,
                  (MBIA), 5.75%, 7/1/23                                        Aaa/AAA          2,113,980
               Housing Div. Rev.,
     185          5.65%, 4/1/22, Ser. A.                                         NR/AA            187,272
     750          5.95%, 4/1/22                                                 Aa2/AA            807,960
     635          6.125%, 4/1/22, Ser. B-2 (FHA)                                Aa2/AA            660,133
     435          6.20%, 4/1/17, Ser. B-1 (AMBAC)                              Aaa/AAA            438,976
                                                                                             ------------
                                                                                                5,428,925
                                                                                             ============
               NEW HAMPSHIRE--0.9%
   1,000       Higher Educ. & Health Fac. Auth. Rev.,
                  6.125%, 10/1/13                                               A3/NR           1,023,150
               State Housing Finance Auth.,
     190          6.50%, 7/1/14, Ser. D +                                       Aa2/NR            199,454
     135          6.90%, 7/1/19, Ser. C +                                       Aa2/NR            136,845
                                                                                             ------------
                                                                                                1,359,449
                                                                                             ============
               NEW JERSEY--2.5%
   1,000       Economic Dev. Auth. Heating & Cooling Rev.,
                  6.20%, 12/1/07, Ser. B +                                     NR/BBB-            999,330
   2,000       State Transportation Syst.,
                  6.00%, 12/15/15, Ser. B (MBIA)                               Aaa/AAA          2,380,500
     750       Tobacco Settlement Fin. Corp., 6.75%, 6/1/39                    Baa2/BBB           680,392
                                                                                             ------------
                                                                                                4,060,222
                                                                                             ============
               NEW YORK--9.8%
   1,000       Central Islip Union Free School Dist., GO,
                  4.00%, 7/15/20, Ser. B (MBIA)                                 Aaa/NR            920,640
     425       Long Island Pwr. Auth. Elec. Syst. Rev.,
                  5.00%, 6/1/06, Ser. B                                         Baa1/A-           455,672
               Metropolitan Trans. Auth., Ser. A,
   5,000          5.00%, 11/15/30 (FSA)                                        Aaa/AAA          5,043,300
   1,000          5.50%, 11/15/14 (AMBAC)                                      Aaa/AAA          1,140,460
   1,000          5.75%, 1/1/16                                                 A3/AA-          1,133,140
</TABLE>



                           | 10.31.03 | Municipal Advantage Fund Annual Report 5

<PAGE>


MUNICIPAL ADVANTAGE FUND INC. SCHEDULE OF INVESTMENTS
October 31, 2003

<TABLE>
<CAPTION>
  Principal
   Amount                                                                  Credit Rating*
    (000)                                                                   (Moody's/S&P)       Value**
- ---------------------------------------------------------------------------------------------------------

<S>            <C>                                                           <C>             <C>
               NEW YORK--(CONTINUED)
               State GO,
  $  750          5.25%, 9/15/33, Ser. C                                         A2/A        $    758,018
   1,000          6.00%, 8/1/14, Ser. H                                          A2/A           1,113,410
      15       State Medical Care Fac. Fin. Agcy. Rev.,
                  6.50%, 8/15/24                                                 A3/AA-            15,939
   1,000       State Mtg. Agcy. Rev., 5.80%, 10/1/12                             Aa1/NR         1,041,880
   1,000       State Urban Dev. Corp. Rev., Personal Income Tax,
                  5.50%, 3/15/18, Ser. C-1 (FGIC)                               Aaa/AAA         1,106,340
   2,825       Triborough Bridge & Tunnel Auth. Revs.,
                  5.125%, 11/15/29, Ser. B                                       Aa3/AA-        2,872,968
                                                                                             ------------
                                                                                               15,601,767
                                                                                             ============
               NORTH DAKOTA--1.0%
               State Housing Fin. Agcy. Rev.,
   1,008          5.50%, 7/1/18, Ser. C +                                        Aa2/NR         1,041,970
     530          5.85%, 7/1/10, Ser. A +                                        Aa2/NR           551,544
                                                                                             ------------
                                                                                                1,593,514
                                                                                             ============
               OHIO--2.1%
   1,155       Akron Sewer Syst. Rev., 5.25%, 12/1/18 (MBIA)                   Aaa/NR           1,243,046
   1,000       Hamilton Cnty. Sewer Syst. Rev.,
                  5.75%, 12/1/25, Ser. A (MBIA)                                Aaa/AAA          1,091,080
     885       Summit Cnty., GO, 6.25%, 12/1/15 (FGIC)                         Aaa/AAA          1,073,443
                                                                                             ------------
                                                                                                3,407,569
                                                                                             ============
               PENNSYLVANIA--2.0%
   2,000       Allegheny Cnty. Hosp. Dev. Auth.,
                  6.00%, 7/1/23, Ser. B (MBIA)                                 Aaa/AAA          2,300,340
     845       South Wayne Cnty. Water and Sewer,
                  5.95%, 10/15/13 (AMBAC)                                      Aaa/AAA            963,849
                                                                                             ------------
                                                                                                3,264,189
                                                                                             ============
               SOUTH CAROLINA--2.5%
   1,250       Charleston Cnty., GO, 6.125%, 9/1/13                            Aa1/AA+          1,456,712
   1,000       State Public Service Auth. Rev., 5.75%, 1/1/15, Ser. A (MBIA)   Aaa/AAA          1,126,510
   1,450       York Cnty. Ind. Rev., 5.70%, 1/1/24 +                           Baa2/BBB         1,434,456
                                                                                             ------------
                                                                                                4,017,678
                                                                                             ============
               SOUTH DAKOTA--0.7%
     960       Heartland Consumer Pwr. Dist. Rev., 7.00%,1/1/16                Aaa/AAA          1,158,960
                                                                                             ============
               TENNESSEE--1.2%
     765       Housing Dev. Agcy., 6.375%, 7/1/22 +                             Aa2/AA            776,444
     960       Memphis-Shelby Cnty. Airpt. Auth. Rev.,
                  6.25%, 3/1/15, Ser. D (AMBAC) +                              Aaa/AAA          1,074,624
                                                                                             ------------
                                                                                                1,851,068
                                                                                             ============
               TEXAS--15.8%
   1,000       Alliance Airpt. Auth. Rev., Fed. Express Corp.,
                  6.375%, 4/1/21                                                Baa2/BBB        1,049,330
</TABLE>



6 Municipal Advantage Fund Annual Report | 10.31.03 |

<PAGE>


MUNICIPAL ADVANTAGE FUND INC. SCHEDULE OF INVESTMENTS
October 31, 2003

<TABLE>
<CAPTION>
  Principal
   Amount                                                                  Credit Rating*
    (000)                                                                   (Moody's/S&P)       Value**
- ---------------------------------------------------------------------------------------------------------

<S>            <C>                                                           <C>             <C>
               TEXAS--(CONTINUED)
  $1,195       Arlington GO, 5.00%, 8/15/16                                     Aa2/AA       $  1,254,917
   1,000       Corpus Christi Refin. & Impt., GO, 5.00%, 3/1/21 (FSA)          Aaa/AAA          1,022,720
   2,000       Cypress-Fairbanks Indpt. School Dist., GO,
                  5.50%, 2/15/17                                               Aaa/AAA          2,200,380
   1,000       Denton Cnty. GO, 5.00%, 7/15/16 (AMBAC)                         Aaa/AAA          1,049,900
   3,400       Fort Bend Indpt. School Dist., GO, 5.25%, 8/15/18                NR/AAA          3,638,748
   1,900       Hays Indpt. School Dist., GO, 5.50%, 8/15/09                    Aaa/AAA          2,165,449
   1,250       Houston Indpt. School Dist., GO, 4.75%, 2/15/22, Ser. A         Aaa/AAA          1,245,375
   1,000       Houston Univ. Rev., 5.25%, 2/15/17 (MBIA)                       Aaa/AAA          1,076,410
               Houston Water Conveyance Syst., CP, (AMBAC)
   1,000          6.25%, 12/15/14, Ser. J                                      Aaa/AAA          1,192,410
   1,400          7.50%, 12/15/15, Ser. H                                      Aaa/AAA          1,818,152
   1,500       Port Houston Auth., Harris Cnty., GO, 5.75%, 10/1/17 +           Aa1/AA+         1,548,990
   1,000       South San Antonio Indpt. School Dist., GO,
                  5.00%, 8/15/21                                               Aaa/AAA          1,026,400
     595       State Housing Fin. Assist, GO, 5.15%, 6/1/24, Ser. A             Aa1/AA            627,814
     500       State Pub. Fin. Auth. Bldg. Rev.,
                  5.625%, 8/1/19, Ser. B (FSA)                                 Aaa/AAA            550,435
   2,000       Texas Tech Univ. Rev., 5.50%, 8/15/18 (MBIA)                    Aaa/AAA          2,174,440
               Water Dev. Board Rev.,
   1,000          5.75%, 7/15/14, Ser. B                                       Aaa/AAA          1,116,200
     400          5.75%, 7/15/17, Ser. A                                       Aaa/AAA            452,456
                                                                                             ------------
                                                                                               25,210,526
                                                                                             ============
               UTAH--1.9%
   2,000       State Go, Ser. A, 5.00%, 7/1/15                                 Aaa/AAA          2,175,660
               State Housing Fin. Agcy., (FHA),
     140          6.35%, 7/1/11                                                 Aaa/NR            140,815
     650          6.55%, 1/1/22-7/1/26                                         Aaa/AAA            661,070
                                                                                             ------------
                                                                                                2,977,545
                                                                                             ============
               VERMONT--0.4%
     690       Housing Fin. Agcy., 5.70%, 5/1/12, Ser. 9 (MBIA) +              Aaa/AAA            713,350
                                                                                             ============
               VIRGINIA--2.6%
   3,000       Commonwealth Trans. Board Rev., U.S. Rte. 58,
                  5.25%, 5/15/16                                                Aa1/AA+         3,264,840
   1,000       Virginia Beach GO, Ser. A, 4.25%, 5/1/23                         Aa1/AA+           939,300
                                                                                             ------------
                                                                                                4,204,140
                                                                                             ============
               WASHINGTON--4.8%
   1,205       Franklin Cnty. Pub. Util. Rev., 5.625%, 9/1/15 (MBIA)            Aaa/AAA         1,351,793
   1,500       Port Seattle Rev., 5.625%, 2/1/24, Ser. B (MBIA)                 Aaa/AAA         1,558,065
   1,000       Seattle Museum Dev. Auth., 6.30%, 7/1/13                         Aa1/AAA         1,033,060
     500       State GO, 5.00%, 1/1/17, Ser. R-03-A (MBIA)                      Aaa/AAA           525,620
   3,000       State GO, Motor Vehicle Dept., 5.625%, 7/1/25, Ser. B            Aa1/AA+         3,196,710
                                                                                             ------------
                                                                                                7,665,248
                                                                                             ============
</TABLE>



                           | 10.31.03 | Municipal Advantage Fund Annual Report 7


<PAGE>


MUNICIPAL ADVANTAGE FUND INC. SCHEDULE OF INVESTMENTS
October 31, 2003

<TABLE>
<CAPTION>
  Principal
   Amount                                                                  Credit Rating*
    (000)                                                                   (Moody's/S&P)       Value**
- ---------------------------------------------------------------------------------------------------------

<S>            <C>                                                           <C>             <C>
               WEST VIRGINIA--1.3%
  $2,000       Braxton Cnty. Solid Waste Disp. Rev., Weyerhaeuser Co.,
                  6.125%-6.50%, 4/1/25-4/1/26 +                                 Baa2/BBB     $  2,047,740
                                                                                             ============
               WISCONSIN--0.8%
   1,305       State GO, 5.30%, 5/1/23, Ser. B +                                 Aa3/AA-        1,310,390
                                                                                             ============
               WYOMING--0.7%
   1,000       Student Loan Corp. Rev., 6.20%, 6/1/24, Ser. A                     NR/AA         1,061,310
                                                                                             ============
               Total Municipal Bonds (cost-$150,017,521)                                      157,156,233
                                                                                             ============
 OTHER MUNICIPAL BONDS--1.7%
               PUERTO RICO--1.7%
   2,460       Commonwealth Hwy. & Transportation Auth Rev.,
                  5.25%, 7/1/10 (FGIC) (cost-$2,799,974)                        Aaa/AAA         2,791,288
                                                                                             ============
TOTAL INVESTMENTS (cost-$152,817,495oo)--100%                                                $159,947,521
                                                                                             ============
</TABLE>


- --------------------------------------------------------------------------------
NOTES TO SCHEDULE OF INVESTMENTS:

*    Unaudited

**   Long-term  debt  securities are valued by an  independent  pricing  service
     authorized by the Board of Directors.

+    Subject to alternative minimum tax

++   Pre-refunded bonds are collateralized by U.S.  Government or other eligible
     securities  which are held in escrow and used to pay principal and interest
     and retire the bonds at the earliest refunding date.

oo   The cost basis of portfolio  securites  for federal  income tax purposes is
     $152,817,495.  Aggregate gross  unrealized  appreciation  for securities in
     which there is an excess value over tax cost is $7,588,336; aggregate gross
     unrealized  depreciation  for securities in which there is an excess of tax
     cost over value is $458,310; net unrealized appreciation for federal income
     tax purpose is $7,130,026.


- --------------------------------------------------------------------------------
GLOSSARY:

AMBAC--insured by American Municipal Bond Assurance Corp.
CP--Certificates of Participation
FGIC--insured by insured Financial Guaranty Insurance Co.
FHA--insured by Federal Housing Administration
FSA--insured by Financial Security Assurance, Inc.
GO--General Obligation Bonds
MBIA--insured by Municipal Bond Investors Assurance
NR--Not Rated
XLCA--insured by XL Capital Assurance




                                  SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

8 Municipal Advantage Fund Annual Report | 10.31.03 |

<PAGE>


MUNICIPAL ADVANTAGE FUND INC. STATEMENT OF ASSETS AND LIABILITIES
October 31, 2003


ASSETS:
Investments, at value (cost-$152,817,495)                           $159,947,521
- -----------------------------------------------------------------   ------------
Cash                                                                     280,883
- -----------------------------------------------------------------   ------------
Interest receivable                                                    2,630,592
- -----------------------------------------------------------------   ------------
Receivable for investments sold                                        1,200,806
- -----------------------------------------------------------------   ------------
Prepaid expenses                                                          13,338
- -----------------------------------------------------------------   ------------
Total Assets                                                         164,073,140
=================================================================   ============

LIABILITIES:
Dividends payable to common and preferred shareholders                   558,551
- -----------------------------------------------------------------   ------------
Investment management fee payable                                         82,934
- -----------------------------------------------------------------   ------------
Accrued expenses                                                         116,960
- -----------------------------------------------------------------   ------------
Total Liabilities                                                        758,445
- -----------------------------------------------------------------   ------------
PREFERRED STOCK ($0.001 PAR VALUE AND $50,000 NET ASSET AND
LIQUIDATION VALUE PER SHARE APPLICABLE TO 1,100 SHARES ISSUED
AND OUTSTANDING)                                                      55,000,000
- -----------------------------------------------------------------   ------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS                        $108,314,695
=================================================================   ============

COMPOSITION OF NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
COMMON STOCK:
  Par value ($0.001 per share, applicable to 7,257,093 shares
  issued and outstanding)                                           $      7,257
- -----------------------------------------------------------------   ------------
  Paid-in-capital in excess of par                                   100,618,353
- -----------------------------------------------------------------   ------------
Undistributed net investment income                                      154,518
- -----------------------------------------------------------------   ------------
Accumulated net realized gain                                            404,541
- -----------------------------------------------------------------   ------------
Net unrealized appreciation of investments                             7,130,026
- -----------------------------------------------------------------   ------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS                        $108,314,695
=================================================================   ============
NET ASSET VALUE PER COMMON SHARE                                          $14.93
=================================================================   ============





                 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

                           | 10.31.03 | Municipal Advantage Fund Annual Report 9

<PAGE>


MUNICIPAL ADVANTAGE FUND INC. STATEMENT OF OPERATIONS
Year ended October 31, 2003


INVESTMENT INCOME:
Interest                                                             $8,082,697
=================================================================   ============

EXPENSES:
Investment management fees                                              982,607
- -----------------------------------------------------------------   ------------
Auction agent fees and commissions                                      147,012
- -----------------------------------------------------------------   ------------
Audit and tax service fees                                               78,785
- -----------------------------------------------------------------   ------------
New York Stock Exchange listing fee                                      46,250
- -----------------------------------------------------------------   ------------
Custodian fees                                                           44,212
- -----------------------------------------------------------------   ------------
Transfer agent fees                                                      37,204
- -----------------------------------------------------------------   ------------
Reports to shareholders                                                  36,665
- -----------------------------------------------------------------   ------------
Legal fees                                                               35,790
- -----------------------------------------------------------------   ------------
Directors' fees and expenses                                             28,660
- -----------------------------------------------------------------   ------------
Insurance expense                                                         5,847
- -----------------------------------------------------------------   ------------
Investor relations expense                                                3,142
- -----------------------------------------------------------------   ------------
Miscellaneous                                                            16,947
- -----------------------------------------------------------------   ------------
Total expenses                                                        1,463,121
- -----------------------------------------------------------------   ------------
Less: expense offset                                                     (2,142)
=================================================================   ============
   Net expenses                                                       1,460,979
=================================================================   ============

NET INVESTMENT INCOME                                                 6,621,718
=================================================================   ============

REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on:
  Investments                                                         1,001,615
- -----------------------------------------------------------------   ------------
  Futures contracts                                                     164,310
- -----------------------------------------------------------------   ------------
Net change in unrealized appreciation/depreciation of investments       (82,365)
- -----------------------------------------------------------------   ------------
Net realized and unrealized gain on investments and futures
contracts                                                             1,083,560
=================================================================   ============
NET INCREASE IN NET ASSETS RESULTING FROM INVESTMENT OPERATIONS       7,705,278
=================================================================   ============
DIVIDENDS ON PREFERRED STOCK FROM NET INVESTMENT INCOME                (604,891)
=================================================================   ============
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
RESULTING FROM INVESTMENT OPERATIONS                                 $7,100,387
=================================================================   ============




                                  SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

10 Municipal Advantage Fund Annual Report | 10.31.03 |

<PAGE>


MUNICIPAL ADVANTAGE FUND INC. STATEMENT OF CHANGES IN NET ASSETS
                              APPLICABLE TO COMMON SHAREHOLDERS

<TABLE>
<CAPTION>
                                                                   Year ended     Year ended
                                                                   October 31,    October 31,
                                                                      2003           2002
                                                                   -----------    -----------

<S>                                                               <C>            <C>
INVESTMENT OPERATIONS:
Net investment income                                             $  6,621,718   $  7,227,439
- ----------------------------------------------------------------  ----------------------------
Net realized gain on investments and futures contracts               1,165,925         85,434
- ----------------------------------------------------------------  ----------------------------
Net change in unrealized appreciation/depreciation of investments      (82,365)      (270,395)
- ----------------------------------------------------------------  ----------------------------
Net increase in net assets resulting from investment operations      7,705,278      7,042,478
- ----------------------------------------------------------------  ----------------------------
DIVIDENDS ON PREFERRED STOCK FROM NET INVESTMENT INCOME               (604,891)      (832,810)
================================================================  ============================
Net increase in net assets applicable to common shareholders
  resulting from investment operations.                               7,100,387     6,209,668
- ----------------------------------------------------------------  ----------------------------
DIVIDENDS TO COMMON SHAREHOLDERS FROM NET INVESTMENT INCOME         (6,458,814)    (6,070,558)
================================================================  ============================
Total increase in net assets applicable to common shareholders         641,573        139,110
- ----------------------------------------------------------------  ----------------------------

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of year                                                  107,673,122    107,534,012
- ----------------------------------------------------------------  ----------------------------
End of year (including undistributed net investment income of
  $154,518, and $596,505, respectively)                           $108,314,695   $107,673,122
================================================================  ============================
</TABLE>





                 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

                          | 10.31.03 | Municipal Advantage Fund Annual Report 11

<PAGE>


MUNICIPAL ADVANTAGE FUND, INC. NOTES TO FINANCIAL STATEMENTS
October 31, 2003


1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Municipal  Advantage  Fund Inc.  (the "Fund") was  incorporated  in the State of
Maryland on February 23, 1993 and is  registered  as a  diversified,  closed-end
management investment company under the Investment Company Act of 1940.

The  preparation  of the  financial  statements in  accordance  with  accounting
principles   generally  accepted  in  the  United  States  of  America  requires
management to make estimates and  assumptions  that affect the reported  amounts
and  disclosures in the financial  statements.  Actual results could differ from
those estimates.

In the normal course of business,  the Fund enters into contracts that contain a
variety of representations  which provide general  indemnifications.  The Fund's
maximum  exposure  under  these  arrangements  is unknown as this would  involve
future  claims  that may be made  against  the Fund that have not yet  occurred.
However, the Fund expects the risk of any loss to be remote.

The following is a summary of significant  accounting  policies  followed by the
Fund:

(a) VALUATION OF INVESTMENTS

The Fund  determines  its net  asset  value  at the  close  of  regular  trading
(normally  4:00 p.m.  Eastern time) on the New York Stock  Exchange  ("NYSE") on
each day the NYSE is open. Debt securities are valued by an independent  pricing
service  approved by the Board of Directors.  Certain  fixed income  securities,
including those to be purchased under firm commitment  agreements,  are normally
valued on the basis of quotes  obtained from brokers and dealers or  independent
pricing  services.  Any  security  or  financial  instrument  for  which  market
quotations are not readily available is valued as determined in good faith under
procedures established by the Board of Directors.  Short-term investments having
a remaining  maturity of sixty days or less are valued at amortized cost,  which
approximates market value.

(b) FEDERAL INCOME TAXES

The Fund intends to distribute  all of its taxable income and to comply with the
other  requirements  of the U.S.  Internal  Revenue  Code of 1986,  as  amended,
applicable to regulated investment companies. Accordingly, no provision for U.S.
federal income taxes is required. In addition, by distributing substantially all
of its taxable ordinary income and long-term  capital gains, if any, during each
calendar year, the Fund intends not to be subject to U.S. federal excise tax.

(c) INVESTMENT TRANSACTIONS AND INVESTMENT INCOME

Investment  transactions are accounted for on the trade date. Realized gains and
losses on  investments  are determined on the  identified  cost basis.  Interest
income is recorded on an accrual basis. Original issue discounts and premiums on
debt  securities  purchased  are  accreted  or  amortized  daily to  non-taxable
interest income. Market discount, if any, is accreted daily to taxable income.

(d) DIVIDENDS AND DISTRIBUTIONS--COMMON STOCK

The Fund  declares  dividends  from net  investment  income  monthly  to  common
shareholders.  Distributions  of net realized  capital  gains,  if any, are paid
annually.  The Fund records  dividends and  distributions to its shareholders on
the  ex-dividend  date.  The  amount of  dividends  and  distributions  from net
investment  income and net realized  capital gains are  determined in accordance
with federal income tax  regulations,  which may differ from generally  accepted
accounting  principles.  These  "book-tax"  differences  are  either  considered
temporary or permanent in nature.  To the extent these differences are permanent
in nature,  such amounts are  reclassified  within the capital accounts based on
their  federal  income  tax  treatment;  temporary  differences  do not  require
reclassification.  To the extent dividends and/or  distributions  exceed current
and  accumulated  earnings and profits for federal  income tax purposes they are
reported as dividends and/or distributions of paid-in-capital in excess of par.




12 Municipal Advantage Fund Annual Report | 10.31.03 |

<PAGE>


MUNICIPAL ADVANTAGE FUND, INC. NOTES TO FINANCIAL STATEMENTS
October 31, 2003


1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (concluded)

(e) FUTURES CONTRACTS

A  futures  contract  is an  agreement  between  two  parties  to buy and sell a
financial  instrument at a set price on a future date. Upon entering into such a
contract,  the Fund is  required  to pledge  to the  broker an amount of cash or
securities equal to the minimum  "initial margin"  requirements of the exchange.
Pursuant to the contracts,  the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily  fluctuation in the value of the contracts.
Such  receipts or payments are known as  "variation  margin" and are recorded by
the Fund as  unrealized  appreciation  or  depreciation.  When the contracts are
closed, the Fund records a realized gain or loss equal to the difference between
the value of the  contracts  at the time they were  opened  and the value at the
time they were closed. Any unrealized  appreciation or depreciation  recorded is
simultaneously  reversed.  The Fund invests in futures  contracts solely for the
purpose of hedging its existing  portfolio  securities  or  securities  the Fund
intends  to  purchase  against  fluctuations  in  value  caused  by  changes  in
prevailing  market  interest  rates.  The use of  futures  involves  the risk of
imperfect  correlation  in the  movements  in the  price of  futures  contracts,
interest rates and the underlying hedged assets,  and the possible  inability of
the  counterparties to meet the terms of their contracts.  The Fund did not have
any futures contracts outstanding at October 31, 2003.

(f) CUSTODY CREDITS EARNED ON CASH BALANCES

The Fund benefits from an expense  offset  arrangement  with its custodian  bank
whereby  uninvested  cash balances earn credits which reduce  monthly  custodian
expenses.  Had these cash balances been invested in income producing securities,
they would have generated income for the Fund.

2. INVESTMENT MANAGER AND INVESTMENT ADVISER

The Fund  has an  Investment  Management  Agreement  with  PIMCO  Advisors  Fund
Management LLC (the "Investment  Manager").  The Investment Manager, among other
things,  supervises  the  Fund's  investment  program,  including  advising  and
consulting  with OpCap  Advisors LLC (the  "Investment  Adviser")  regarding the
Fund's  overall  investment  strategy.  The  Investment  Manager and  Investment
Adviser  are  indirect-wholly-owned   subsidiaries  of  Allianz  Dresdner  Asset
Management  of  America  L.P.  ("ADAM").  ADAM  is  an   indirect-majority-owned
subsidiary of Allianz AG. The Investment Manager,  for its services,  receives a
monthly fee at an annual rate of 0.60% of the Fund's  average weekly net assets,
inclusive  of  net  assets  attributable  to any  preferred  stock  that  may be
outstanding.  The Investment  Adviser receives from the Investment  Manager (not
the Fund) a monthly fee at an annual rate of 0.36% of the Fund's  average weekly
net assets, inclusive of net assets attributable to any preferred stock that may
be  outstanding.  The  Investment  Manager  informed  the Fund  that it paid the
Investment Adviser $589,564 for the year ended October 31, 2003.

3. INVESTMENTS IN SECURITIES

For  the  year  ended  October  31,  2003,  aggregate  purchases  and  sales  of
investments, other than short-term securities, were $42,331,278 and $36,129,678,
respectively.

4. INCOME TAX INFORMATION

The tax character of dividends paid were:

                                          Year Ended         Year Ended
                                       October 31, 2003   October 31, 2002
                                       ----------------   ----------------

               Ordinary Income           $   12,483         $   18,359
               Tax Exempt Income         $7,051,222         $6,885,009

At October 31, 2003, the tax character of distributable earnings of $559,059 was
composed of  $154,518 of tax exempt  income and  $404,541 of  long-term  capital
gains.

During the year ended  October  31, 2003 the Fund  utilized  $761,384 of capital
losses carried over from prior years.





                          | 10.31.03 | Municipal Advantage Fund Annual Report 13



<PAGE>


MUNICIPAL ADVANTAGE FUND, INC. NOTES TO FINANCIAL STATEMENTS
October 31, 2003


5. CAPITAL

There are 100 million shares of $0.001 par value common stock authorized.

For the years  ended  October  31,  2003 and  October  31,  2002,  there were no
transactions in shares of common stock.

6. AUCTION RATE PREFERRED STOCK

The Fund has  issued  1,100  shares  of  Preferred  Stock  with a net  asset and
liquidation value of $50,000 per share plus accrued dividends.

Dividends  are  accumulated   daily  at  an  annual  rate  set  through  auction
procedures.  The annualized dividend rate ranged from 0.849% to 1.42% during the
year ended October 31, 2003 and was 0.849% at October 31, 2003. Distributions of
net realized gains, if any, are paid annually to Preferred Stockholders.

The Fund is subject to certain  limitations  and  restrictions  while  Preferred
Stock is outstanding.  Failure to comply with these limitations and restrictions
could preclude the Fund from declaring any dividends or  distributions to common
shareholders  or  repurchasing  common shares and/or could trigger the mandatory
redemption of Preferred Stock at its liquidation value.

The Preferred  Stock,  which is entitled to one vote per share,  generally votes
with the common stock but votes separately as a class to elect two Directors and
on any matters affecting the rights of the Preferred Stock.

7. SUBSEQUENT COMMON DIVIDEND DECLARATIONS

On  November  3, 2003,  a dividend  of $0.075 per share was  declared  to common
shareholders  payable December 1, 2003 to shareholders of record on November 14,
2003.

On  December  1, 2003,  a dividend  of $0.075 per share was  declared  to common
shareholders payable December 31, 2003 to shareholders of record on December 12,
2003.







14 Municipal Advantage Fund Annual Report | 10.31.03 |


<PAGE>


Municipal Advantage Fund Inc. Financial Highlights


For a share of common stock outstanding throughout each year:

<TABLE>
<CAPTION>
Year ended October 31,             2003        2002        2001        2000         1999
                                 --------    --------    --------    --------     --------
<S>                              <C>         <C>         <C>         <C>          <C>
Net asset value,
beginning of year                $  14.84    $  14.82    $  13.75    $  13.18     $  15.23
- --------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS:

Net investment income                0.91        0.99        1.03        1.05         1.05
- --------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments and
futures contracts                    0.15       (0.03)       1.04        0.60        (2.04)
- --------------------------------------------------------------------------------------------
Total from investment
operations                           1.06        0.96        2.07        1.65        (0.99)
- --------------------------------------------------------------------------------------------
DIVIDENDS ON PREFERRED
STOCK FROM NET
INVESTMENT INCOME                   (0.08)      (0.11)      (0.26)      (0.32)       (0.26)
- --------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets applicable to
common shareholders resulting
from investment operations           0.98        0.85        1.81        1.33        (1.25)
- --------------------------------------------------------------------------------------------
DIVIDENDS TO COMMON
SHAREHOLDERS FROM NET
INVESTMENT INCOME                   (0.89)      (0.83)      (0.74)      (0.76)       (0.80)
- --------------------------------------------------------------------------------------------
Net asset value, end of year     $  14.93    $  14.84    $  14.82    $  13.75     $  13.18
- --------------------------------------------------------------------------------------------
Market price, end of year        $  13.57    $  13.04    $  13.05    $ 11.375     $  11.75
- --------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN (1)          11.0%        6.4%       20.4%        3.4%       (11.6)%
- --------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:

Net assets applicable to
common shareholders,
end of year (000's)              $108,315    $107,673    $107,534    $ 99,778     $ 95,663
- --------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (2)(3)            1.35%       1.38%       1.34%       1.44%        1.36%
- --------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (2)            6.09%       6.83%       7.17%       7.89%        7.22%
- --------------------------------------------------------------------------------------------
Asset coverage per share
of preferred stock               $148,442    $147,846    $147,707    $140,473     $136,768
- --------------------------------------------------------------------------------------------
Portfolio turnover                     23%         37%         25%         27%          22%
- --------------------------------------------------------------------------------------------
</TABLE>

(1) Total investment return is calculated assuming a purchase of common stock at
the current  market price on the first day of the year and a sale at the current
market price on the last day of each year reported.  Dividends are assumed,  for
purposes of this  calculation,  to be  reinvested at prices  obtained  under the
Fund's dividend  reinvestment  plan.  Total  investment  return does not reflect
brokerage  commissions or sales  charges.

(2) Calculated on the basis of income and expenses applicable to both common and
preferred shares relative to the average net assets of common shareholders.

(3) Inclusive of expenses  offset by custody  credits earned on cash balances at
the custodian bank. (See note 1f in Notes to Financial Statements)




                 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

                          | 10.31.03 | Municipal Advantage Fund Annual Report 15


<PAGE>


MUNICIPAL ADVANTAGE FUND INC. REPORT OF INDEPENDENT AUDITORS



TO THE BOARD OF DIRECTORS AND SHAREHOLDERS
OF MUNICIPAL ADVANTAGE FUND INC.

In our opinion, the accompanying statement of assets and liabilities,  including
the schedule of  investments,  and the related  statements of operations  and of
changes  in net  assets  applicable  to common  shareholders  and the  financial
highlights present fairly, in all material  respects,  the financial position of
Municipal  Advantage  Fund Inc. (the "Fund") at October 31, 2003, the results of
its operations for the year then ended, the changes in its net assets applicable
to common  shareholders  for each of the two years in the period  then ended and
the financial highlights for each of the five years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial  statements") are the  responsibility of the Fund's management;
our responsibility is to express an opinion on these financial  statements based
on our  audits.  We  conducted  our  audits  of these  financial  statements  in
accordance with auditing  standards  generally  accepted in the United States of
America,  which require that we plan and perform the audit to obtain  reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the  amounts  and  disclosures  in  the  financial  statements,   assessing  the
accounting  principles  used and significant  estimates made by management,  and
evaluating the overall  financial  statement  presentation.  We believe that our
audits,  which  included  confirmation  of  securities  at October  31,  2003 by
correspondence with the custodian, provide a reasonable basis for our opinion.



PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
December 16, 2003







16 Municipal Advantage Fund Annual Report | 10.31.03 |

<PAGE>


MUNICIPAL ADVANTAGE FUND INC.



TAX INFORMATION (unaudited):

Subchapter M of the Internal Revenue Code of 1986, as amended, requires the Fund
to advise  shareholders  within 60 days of the Fund's tax year end  (October 31,
2003) as to the federal tax status of dividends  and  distributions  received by
shareholders  during  such tax  year.  Accordingly,  the Fund is  advising  that
substantially  all dividends paid from net investment income during the tax year
ended October 31, 2003 were federally  exempt interest  dividends,  although the
Fund did  invest in  securities  which  paid  interest  subject  to the  federal
alternative  minimum tax during the tax year.  The  percentage of dividends paid
from net investment income subject to such tax was 35.5%. Additionally, the Fund
invested in municipal  bonds  containing  market  discount,  whose  accretion is
taxable. Accordingly,  0.18% of the Fund's dividends paid during the fiscal year
are taxable. Per share dividends for the tax year ended October 31, were:

      DIVIDENDS TO COMMON SHAREHOLDERS FROM NET INVESTMENT INCOME      $0.885

      DIVIDENDS ON PREFERRED STOCK FROM NET INVESTMENT INCOME          $549.90

Since the Fund's tax year is not the calendar year, another notification will be
sent with respect to calendar year 2003. In January 2004, you will be advised on
IRS Form 1099 DIV as to the  federal  tax status of the  dividends  received  in
calendar 2003.  The amount that will be reported,  will be the amount to be used
on your 2003 federal income tax return and may differ from the amount which must
be  reported in  connection  with the Fund's tax year ended  October  31,  2003.
Shareholders are advised to consult their tax advisers as to the federal,  state
and local tax status of the income  received  from the Fund.  An  allocation  of
interest income by state will also be provided which may be of value in reducing
a shareholder's state or local tax liability, if any.


- --------------------------------------------------------------------------------
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN:

The Fund has a Dividend  Reinvestment  and Cash  Purchase  Plan (the  "Plan") in
which  all  dividends  and  distributions   paid  to  Common   Stockholders  are
automatically  reinvested in additional shares of the Fund (unless a shareholder
elects to receive cash).  EquiServe L.P. ( the "Plan Agent") serves as agent for
the holders of Common Stock in  administering  the Plan.  Subsequent to the Fund
paying a  dividend  and/or  distribution,  the  Plan  Agent,  as  agent  for the
participants,  receives  cash and uses it to purchase  Common  Stock in the open
market,  on the New York Stock  Exchange  or  elsewhere,  for the  participants'
accounts.  The Fund does not issue any new shares of Common Stock in  connection
with the Plan. The Plan Agent's fees for the provision of services in connection
with the  reinvestment of dividends and  distributions is paid by the Fund. Each
participant also pays a pro rata share of the brokerage commission incurred with
respect  to the Plan  Agent's  open  market  purchases  in  connection  with the
reinvestment. The receipt of dividends and distributions under the Plan does not
relieve participants of any income tax which may be payable on such dividends or
distributions.  Participation  in the  Plan  may be  terminated  at any  time by
written  notice  to the Plan  Agent.  Participants  also  have an option to make
additional cash payments to the Plan Agent for the purchase of Common Stock with
a minimum investment of $250. All  correspondence  concerning the Plan including
requests for additional  information or requests to be included or excluded from
the Plan should be  addressed to the  applicable  bank,  broker-dealer  or other
nominee or in the case of shareholders  whose shares are registered in their own
name to EquiServe L.P., Post Office Box 8200, Boston,  Massachusetts 02266 or by
calling 1-800-426-5523.


- --------------------------------------------------------------------------------
OTHER INFORMATION:

Since October 31, 2002,  there have been no: (i) material  changes in the Fund's
investment  objectives  or  policies;  (ii)  changes  to the  Fund's  charter or
by-laws;  (iii) material  changes in the principal risk factors  associated with
investment in the Fund; or (iv) change in the person  primarily  responsible for
the day-to-day management of the Fund's portfolio.





                          | 10.31.03 | Municipal Advantage Fund Annual Report 17


<PAGE>


MUNICIPAL ADVANTAGE FUND INC. BOARD OF DIRECTORS


BOARD OF DIRECTORS

<TABLE>
<CAPTION>
NAME, POSITION(S)
HELD WITH FUND, AGE AND
ADDRESS                                                 PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS
- ----------------------------------------------------------------------------------------------------------

<S>                                                     <C>
STEPHEN TREADWAY, DIRECTOR, CHAIRMAN,                   Managing   Director,    Allianz   Dresdner   Asset
CHAIRMAN OF THE BOARD                                   Management of America L.P.;  Managing Director and
1345 Avenue of the Americas                             Chief  Executive  Officer,   PIMCO  Advisors  Fund
New York, NY 10105                                      Management  LLC;   Managing   Director  and  Chief
Age: 56                                                 Executive  Officer,  PIMCO  Advisors  Distributors
DIRECTOR SINCE: 1997                                    LLC;  Member of the Board of Management of Allianz
TERM OF OFFICE: EXPECTED TO STAND FOR RE-ELECTION AT    Dresdner  Asset   Management  Gmbh;  Mr.  Treadway
2005 ANNUAL MEETING OF SHAREHOLDERS.                    serves as a  director/trustee  and  holds  various
DIRECTOR/TRUSTEE OF 53 FUNDS IN FUND COMPLEX            executive  officer  positions in  connection  with
DIRECTOR/TRUSTEE OF NO FUNDS OUTSIDE OF FUND COMPLEX    Allianz   Dresdner  Asset  Management  of  America
                                                        L.P.'s  affiliated  open-  and  closed-end  mutual
                                                        funds.

PAUL BELICA, DIRECTOR                                   Trustee of fifteen open- and closed-end management
1345 Avenue of the Americas                             investment   companies   affiliated  with  Allianz
New York, NY 10105                                      Dresdner   Asset   Management   of  America  L.P.;
Age: 82                                                 Manager,  Stratigos Fund,  L.L.C.,  Whistler Fund,
TRUSTEE SINCE: 2003                                     L.L.C.,  Xanthus Fund,  L.L.C., and Wynstone Fund,
TERM OF OFFICE: AFTER INITIAL TERM, EXPECTED TO         L.L.C.;  Director,  Student  Loan  Finance  Corp.,
STAND FOR ELECTION AT 2004 ANNUAL MEETING               Education Loans, Inc., Goal Funding,  Inc., Surety
OF SHAREHOLDERS.                                        Loan  Funding  Inc.;  Formerly,  Advisor,  Salomon
TRUSTEE OF 16 FUNDS IN FUND COMPLEX                     Smith Barney, Inc.; Director, The Central European
TRUSTEE OF 2 FUNDS OUTSIDE OF FUND COMPLEX              Value Fund, Inc.; Deck House Inc.

ROBERT E. CONNOR, DIRECTOR                              Trustee   of   seventeen   open-  and   closed-end
1345 Avenue of the Americas                             management  investment  companies  affiliated with
New York, NY 10105                                      Allianz  Dresdner Asset Management of America L.P.
Age: 69                                                 Corporate  Affairs  Consultant.  Formerly,  Senior
Director since: 2000                                    Vice  President,  Corporate  Office,  Smith Barney
TERM OF OFFICE: EXPECTED TO STAND FOR RE-ELECTION AT    Inc.
2004 ANNUAL MEETING OF SHAREHOLDERS.
DIRECTOR/TRUSTEE OF 18 FUNDS IN FUND COMPLEX
DIRECTOR/TRUSTEE OF NO FUNDS OUTSIDE OF FUND COMPLEX

RAYMOND D. HORTON, DIRECTOR                             Professor,  Columbia University Graduate School of
1345 Avenue of the Americas                             Business;  Formerly,  President,  Citizens  Budget
New York, NY 10105                                      Commission, Inc. (1986-1998).
Age: 64
DIRECTOR SINCE: 1994
TERM OF OFFICE: EXPECTED TO STAND FOR RE-ELECTION AT
2006 ANNUAL MEETING OF SHAREHOLDERS.
DIRECTOR/TRUSTEE OF 1 FUND IN FUND COMPLEX
DIRECTOR/TRUSTEE OF NO FUNDS OUTSIDE OF FUND COMPLEX

WENDY W. LUERS, DIRECTOR                                Founder and President,  The Foundation for a Civil
1345 Avenue of the Americas                             Society,  New  York,  Prague,  Bratislava  (a  non
New York, NY 10105                                      profit    foundation    which   sponsors   various
Age: 63                                                 organizations and programs in the Czech and Slovak
DIRECTOR SINCE: 2001                                    Republics).
TERM OF OFFICE: EXPECTED TO STAND FOR RE-ELECTION AT
2004 ANNUAL MEETING OF SHAREHOLDERS.
DIRECTOR/TRUSTEE OF 1 FUND IN FUND COMPLEX
DIRECTOR/TRUSTEE OF NO FUNDS OUTSIDE OF FUND COMPLEX
</TABLE>



18 Municipal Advantage Fund Annual Report | 10.31.03

<PAGE>


MUNICIPAL ADVANTAGE FUND INC. PRIVACY POLICY



OUR COMMITTMENT TO YOU

We consider customer privacy to be a fundamental aspect of our relationship with
clients.  We are committed to maintaining the  confidentiality,  integrity,  and
security of our current,  prospective and former clients' personal  information.
We have  developed  policies  designed to protect  this  confidentiality,  while
allowing client needs to be served.

OBTAINING PERSONAL INFORMATION

In the  course of  providing  you with  products  and  services,  we may  obtain
non-public  personal  information  about  you.  This  information  may come from
sources  such as account  applications  and other  forms,  from  other  written,
electronic or verbal correspondence, from your transactions, from your brokerage
or  financial  advisory  firm,  financial  adviser or  consultant,  and/or  from
information captured on our internet web sites.

RESPECTING YOUR PRIVACY

We do not  disclose  any  personal  or account  information  provided  by you or
gathered by us to non-affiliated third parties,  except as required or permitted
by law. As is common in the industry,  non-affiliated companies may from time to
time be  used to  provide  certain  services,  such  as  preparing  and  mailing
prospectuses,  reports,  account  statements and other  information,  conducting
research on client satisfaction,  and gathering shareholder proxies. We may also
retain  non-affiliated  companies  to  market  our  products  and enter in joint
marketing  agreements with other  companies.  These companies may have access to
your personal and account information,  but are permitted to use the information
solely to provide the specific service or as otherwise  permitted by law. We may
also  provide  your  personal  and  account  information  to your  brokerage  or
financial advisory firm and/or to your financial adviser or consultant.

SHARING INFORMATION WITH THIRD PARTIES

We  do  reserve  the  right  to  disclose  or  report  personal  information  to
non-affiliated  third parties in limited  circumstances where we believe in good
faith that disclosure is required under law, to cooperate with regulators or law
enforcement  authorities,  to protect our rights or property, or upon reasonable
request by any mutual fund in which you have chosen to invest.  In addition,  we
may disclose  information  about you or your accounts to a non-affiliated  third
party at your request or if you consent in writing to the disclosure.

SHARING INFORMATION WITH AFFILIATES

We may share client information with our affiliates in connection with servicing
your account or to provide you with information about products and services that
we believe may be of interest to you. The information we share may include,  for
example,  your  participation in our mutual funds or other investment  programs,
your ownership of certain types of accounts (such as IRAs),  or other data about
your  accounts.  Our  affiliates,  in turn,  are not  permitted  to  share  your
information  with  non-affiliated  entities,  except as required or permitted by
law.

IMPLEMENTATION OF PROCEDURES

We  take  seriously  the  obligation  to  safeguard  your  non-public   personal
information.  We have implemented procedures designed to restrict access to your
non-public  personal  information  to  our  personnel  who  need  to  know  that
information  to provide  products or  services to you. To guard your  non-public
personal  information,  physical,  electronic,  and procedural safeguards are in
place.






                          | 10.31.03 | Municipal Advantage Fund Annual Report 19


<PAGE>










                      [This page intentionally left blank.]

<PAGE>


DIRECTORS AND PRINCIPAL OFFICERS

Stephen Treadway
  Director, Chairman, Chairman of the Board
Paul Belica
  Director
Robert E. Connor
  Director
Raymond D. Horton
  Director
Wendy W. Luers
  Director
Brian S. Shlissel
  President & Chief Executive Officer
Matthew Greenwald
  Executive Vice President
Newton B. Schott, Jr.
  Executive Vice President & Secretary
Lawrence G. Altadonna
  Treasurer, Principal Financial & Accounting Officer


INVESTMENT MANAGER

PIMCO Advisors Fund Management LLC
1345 Avenue of the Americas
New York, NY 10105


INVESTMENT ADVISER

OpCap Advisors LLC
1345 Avenue of the Americas
New York, NY 10105


TRANSFER AGENT, DIVIDEND PAYING AGENT AND REGISTRAR

EquiServe Trust Co. N.A.
Post Office Box 8200
Boston, MA 02266


INDEPENDENT AUDITORS

PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036

This report,  including the financial  information herein, is transmitted to the
shareholders of Municipal Advantage Fund Inc. for their information. It is not a
prospectus,  circular  or  representation  intended  for use in the  purchase of
shares of the Fund or any securities mentioned in this report.

Notice  is hereby  given in  accordance  with  Section  23(c) of the  Investment
Company Act of 1940,  as amended,  that from time to time the Fund may  purchase
shares of its common stock in the open market.

Daily  information  on the  Fund is  available  at  www.pimcoadvisors.com  or by
calling 1-800-426-5523.


<PAGE>


P I M C O
- ---------
ADVISORS









                                                                  MVFCM-AR-10/03

<PAGE>


ITEM 2. CODE OF ETHICS As of the end of the period covered by this report, the
registrant has adopted a code of ethics (the "Section 406 Standards for
Investment Companies -- Ethical Standards for Principal Executive and Financial
Officers") that applies to the registrant's Principal Executive Officer and
Principal Financial Officer; the registrant's Principal Financial Officer also
serves as the Principal Accounting Officer. The registrant undertakes to provide
a copy of such code of ethics to any person upon request, without charge, by
calling 1-800-426-5523.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has determined
that Mr. Paul Belica, a member of the Board's Audit Oversight Committee is an
"audit committee financial expert," and that he is "independent," for purposes
of this Item.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Disclosure requirement not
currently effective

ITEM 5. [RESERVED]

ITEM 6. [RESERVED]

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES Not applicable to this registrant

ITEM 8. [RESERVED]

ITEM 9. CONTROLS AND PROCEDURES

(a)  The registrant's President and Chief Executive Officer and Principal
     Financial Officer have concluded that the registrant's disclosure controls
     and procedures (as defined in Rule 30a-2(c) under the Investment Company
     Act of 1940, as amended are effective based on their evaluation of these
     controls and procedures as of a date within 90 days of the filing date of
     this document.

(b)  There were no significant changes in the registrant's internal controls or
     in factors that could affect these controls subsequent to the date of their
     evaluation, including any corrective actions with regard to significant
     deficiencies and material weaknesses.

ITEM 10. EXHIBITS

(a)  Exhibit 99.a - Code of Ethics

(b)  Exhibit 99.Cert. - Certification pursuant to Section 302 of the
     Sarbanes-Oxley Act of 2002

(c)  Exhibit 99.906 Cert. - Certification pursuant to Section 906 of the
     Sarbanes-Oxley Act of 2002

<PAGE>


                                    Signature


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)  Municipal Advantage Fund Inc.
              -----------------------------

By /s/ Brian S. Shlissel
- ------------------------
President and Chief Executive Officer

Date January 2, 2004
- --------------------

By /s/ Lawrence G. Altadonna
- ----------------------------
Treasurer

Date January 2, 2004
- --------------------

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 /s/ Brian S. Shlissel
- ------------------------
President and Chief Executive Officer

Date January 2, 2004
- --------------------

By /s/ Lawrence G. Altadonna
- ----------------------------
Treasurer

Date January 2, 2004
- --------------------



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CODE ETH
<SEQUENCE>3
<FILENAME>c29840_codeeth.txt
<TEXT>


                                                                         EX-99.A


          CODE OF ETHICS PURSUANT TO SECTION 406 OF THE SARBANES-OXLEY
       ACT OF 2002 FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS

                               SEPTEMBER 16, 2003

I.       COVERED OFFICERS/PURPOSE OF THE CODE

         This Code of Ethics (this "Code") pursuant to Section 406 of the
Sarbanes-Oxley Act of 2002 has been adopted by the registered investment
companies (each a "Fund" and, collectively, the "Funds") listed on Exhibit A and
applies to each Fund's Principal Executive Officer, Principal Financial Officer
and Principal Accounting Officer (the "Covered Officers" each of whom is
identified in Exhibit B) for the purpose of promoting:

         o        honest and ethical conduct, including the ethical handling of
                  actual or apparent conflicts of interest between personal and
                  professional relationships;

         o        full, fair, accurate, timely and understandable disclosure in
                  reports and documents that a Fund files with, or submits to,
                  the Securities and Exchange Commission ("SEC") and in other
                  public communications made by a Fund;

         o        compliance with applicable laws and governmental rules and
                  regulations;

         o        the prompt internal reporting of violations of the Code to an
                  appropriate person or persons identified in the Code; and

         o        accountability for adherence to the Code.

         Each Covered Officer should adhere to a high standard of business
ethics and should be sensitive to situations that may give rise to conflicts of
interest.

II.      COVERED OFFICERS SHOULD HANDLE ETHICALLY ANY ACTUAL OR APPARENT
         CONFLICTS OF INTEREST

         OVERVIEW. A "conflict of interest" occurs when a Covered Officer's
private interest interferes with the interests of, or his service to, the
relevant Fund. For example, a conflict of interest would arise if a Covered
Officer, or a member of the Covered Officer's family, receives improper personal
benefits as a result of the Covered Officer's position with the relevant Fund.

         Certain conflicts of interest arise out of the relationships between
Covered Officers and the relevant Fund and already are subject to conflict of
interest provisions


<PAGE>


and procedures in the Investment Company Act of 1940 (including the regulations
thereunder, the "1940 Act") and the Investment Advisers Act of 1940 (including
the regulations thereunder, the "Investment Advisers Act"). Indeed, conflicts of
interest are endemic for certain registered management investment companies and
those conflicts are both substantially and procedurally dealt with under the
1940 Act. For example, Covered Officers may not engage in certain transactions
with a Fund because of their status as "affiliated persons" of such Fund. The
compliance program of each Fund and the compliance programs of its investment
advisers (including sub-advisers), principal underwriter and administrator or
sub-administrator (each a "Service Provider" and, collectively, the "Service
Providers") are reasonably designed to prevent, or identify and correct,
violations of many of those provisions, although they are not designed to
provide absolute assurance as to those matters. This Code does not, and is not
intended to, repeat or replace these programs and procedures, and such conflicts
fall outside of the parameters of this Code. See also Section V of this Code.

         Although typically not presenting an opportunity for improper personal
benefit, conflicts arise from, or as a result of, the contractual relationship
between a Fund and its Service Providers of which the Covered Officers are also
officers or employees. As a result, this Code recognizes that the Covered
Officers will, in the normal course of their duties (whether for the Funds or
for a Service Provider, or for both), be involved in establishing policies and
implementing decisions that will have different effects on the Service Providers
and the Funds. The participation of the Covered Officers in such activities is
inherent in the contractual relationships between the Funds and their Service
Providers and is consistent with the performance by the Covered Officers of
their duties as officers of the relevant Fund. Thus, if performed in conformity
with the provisions of the 1940 Act, the Investment Advisers Act, other
applicable law and the relevant Fund's constitutional documents, such activities
will be deemed to have been handled ethically. Frequently, the 1940 Act
establishes, as a mechanism for dealing with conflicts, disclosure to and
approval by the Directors/Trustees of a Fund who are not "interested persons" of
such Fund under the 1940 Act. In addition, it is recognized by the Funds' Boards
of Directors/Trustees ("Boards") that the Covered Officers may also be officers
or employees of one or more other investment companies covered by this or other
codes and that such service, by itself, does not give rise to a conflict of
interest.

         Other conflicts of interest are covered by the Code, even if such
conflicts of interest are not the subject of provisions of the 1940 Act and the
Investment Advisers Act. The following list provides examples of conflicts of
interest under the Code, but Covered Officers should bear in mind that these
examples are not exhaustive. The overarching principle is that the personal
interest of a Covered Officer should not be placed improperly before the
interest of the relevant Fund, unless the personal interest has been disclosed
to and approved by other officers of such Fund or such Fund's Board or a
committee of such Fund's Board that has no such personal interest.


                                 *   *   *   *



                                      -2-
<PAGE>


         Each Covered Officer must not:

         o        use his personal influence or personal relationships
                  improperly to influence investment decisions or financial
                  reporting by the relevant Fund whereby the Covered Officer
                  would benefit personally to the detriment of such Fund;

         o        cause the relevant Fund to take action, or fail to take
                  action, for the individual personal benefit of the Covered
                  Officer rather than the benefit such Fund; or

         o        retaliate against any other Covered Officer or any employee of
                  the Funds or their Service Providers for reports of potential
                  violations that are made in good faith.

         There are some conflict of interest situations that should always be
approved by the President of the relevant Fund (or, with respect to activities
of the President, by the Chairman of the relevant Fund). These conflict of
interest situations are listed below:

         o        service on the board of directors or governing board of a
                  publicly traded entity;

         o        acceptance of any investment opportunity or of any material
                  gift or gratuity from any person or entity that does business,
                  or desires to do business, with the relevant Fund. For these
                  purposes, material gifts do not include (i) gifts from a
                  single giver so long as their aggregate annual value does not
                  exceed the equivalent of $100.00 or (ii) attending business
                  meals, business related conferences, sporting events and other
                  entertainment events at the expense of a giver, so long as the
                  expense is reasonable and both the Covered Person and the
                  giver are present.(1)

         o        any ownership interest in, or any consulting or employment
                  relationship with, any entities doing business with the
                  relevant Fund, other than a Service Provider or an affiliate
                  of a Service Provider. This restriction shall not apply to or
                  otherwise limit the ownership of publicly traded securities so
                  long as the Covered Person's ownership does not exceed more
                  than 2% of the outstanding securities of the relevant class.

         o        a direct or indirect financial interest in commissions,
                  transaction charges or spreads paid by the relevant Fund for
                  effecting portfolio transactions or for selling or redeeming
                  shares other than an interest arising from the Covered
                  Officer's employment with a Service Provider or its affiliate.
                  This restriction shall not apply to or otherwise limit the
                  ownership of


- --------
(1)  The $100.00 threshold was taken from the ADAMA Code of Ethics.


                                      -3-
<PAGE>


                  publicly traded securities so long as the Covered Person's
                  ownership does not exceed more than 2% of the particular class
                  of security outstanding.

III.     DISCLOSURE AND COMPLIANCE

         o        no Covered Officer should knowingly misrepresent, or cause
                  others to misrepresent, facts about the relevant Fund to
                  others, whether within or outside such Fund, including to such
                  Fund's Board and auditors, and to governmental regulators and
                  self-regulatory organizations;

         o        each Covered Officer should, to the extent appropriate within
                  his area of responsibility, consult with other officers and
                  employees of the Funds and the Service Providers or with
                  counsel to the Funds with the goal of promoting full, fair,
                  accurate, timely and understandable disclosure in the
                  registration statements or periodic reports that the Funds
                  file with, or submit to, the SEC (which, for sake of clarity,
                  does not include any sales literature, omitting prospectuses,
                  or "tombstone" advertising prepared by the relevant Fund's
                  principal underwriter(s)); and

         o        it is the responsibility of each Covered Officer to promote
                  compliance with the standards and restrictions imposed by
                  applicable laws, rules and regulations.

IV.      REPORTING AND ACCOUNTABILITY

         Each Covered Officer must:

         o        upon adoption of the Code (or thereafter as applicable, upon
                  becoming a Covered Officer), affirm in writing to the relevant
                  Fund that he has received, read, and understands the Code;

         o        provide full and fair responses to all questions asked in any
                  Trustee and Officer Questionnaire provided by the relevant
                  Fund as well as with respect to any supplemental request for
                  information; and

         o        notify the President of the relevant Fund promptly if he is
                  convinced to a moral certainty that there has been a material
                  violation of this Code (with respect to violations by a
                  President, the Covered Officer shall report to the Chairman of
                  the relevant Fund).

         The President of each Fund is responsible for applying this Code to
specific situations in which questions are presented under it and has the
authority to interpret this Code in any particular situation. However, any
approvals or waivers sought by the President will be considered by the Chairman
of the relevant Fund.

         The Funds will follow these procedures in investigating and enforcing
this Code:


                                      -4-
<PAGE>


         o        the President will take all appropriate action to investigate
                  any potential material violations reported to him, which
                  actions may include the use of internal or external counsel,
                  accountants or other personnel;

         o        if, after such investigation, the President believes that no
                  material violation has occurred, the President is not required
                  to take any further action;

         o        any matter that the President believes is a material violation
                  will be reported to the Committee;

         o        if the Committee concurs that a material violation has
                  occurred, it will inform and make a recommendation to the
                  Board, which will consider appropriate action, which may
                  include review of, and appropriate modifications to applicable
                  policies and procedures; notification to appropriate personnel
                  of a Service Provider or its board; or a recommendation to
                  dismiss the Covered Officer;

         o        the Committee will be authorized to grant waivers, as it deems
                  appropriate; and

         o        any changes to or waivers of this Code will, to the extent
                  required, be disclosed as provided by SEC rules.

V.       OTHER POLICIES AND PROCEDURES

         This Code shall be the sole code of ethics adopted by the Funds for
purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms
applicable to registered investment companies thereunder. Insofar as other
policies or procedures of the Funds or the Funds' Service Providers govern or
purport to govern the behavior or activities of the Covered Officers who are
subject to this Code, they are superseded by this Code to the extent that they
conflict with the provisions of this Code. The Funds' and their Service
Providers's codes of ethics under Rule 17j-1 under the 1940 Act and the Service
Providers's more detailed compliance policies and procedures are separate
requirements applying to the Covered Officers and others, and are not part of
this Code.

VI.      AMENDMENTS

         Any material amendments to this Code, other than amendments to Exhibit
A, must be approved or ratified by a majority vote of the Board.

VII.     CONFIDENTIALITY

         All reports and records prepared or maintained pursuant to this Code
will be considered confidential and shall be maintained and protected
accordingly. Except as otherwise required by law or this Code, such matters
shall not be disclosed to anyone except as permitted by the Board.



                                      -5-
<PAGE>


VIII.    INTERNAL USE

         The Code is intended solely for the internal use by the Funds and does
not constitute an admission, by or on behalf of any Fund, as to any fact,
circumstance, or legal conclusion.

Date:  September 16, 2003








                                      -6-

<PAGE>



EXHIBIT A

Registered Investment Companies
- -------------------------------

PIMCO Municipal Income Fund I/II/III

PIMCO California Municipal Income Fund I/II/III

PIMCO New York Municipal Income Fund I/II/III

PIMCO Corporate Income Fund

PIMCO Corporate Opportunity Fund

Nicholas-Applegate Convertible & Income Fund

PIMCO High Income Fund

Nicholas-Applegate Convertible & Income Fund II

PIMCO Floating Rate Income Fund

Municipal Advantage Fund Inc.

Fixed Income Shares










                                      -7-
<PAGE>


EXHIBIT B


Persons Covered by this Code of Ethics
- --------------------------------------

  ------------------------------------------------------------------------------
    PRINCIPAL EXECUTIVE     PRINCIPAL FINANCIAL      PRINCIPAL ACCOUNTING
         OFFICER                  OFFICER                  OFFICER
  ------------------------------------------------------------------------------

  ------------------------------------------------------------------------------
     Brian S. Shlissel     Lawrence G. Altadonna    Lawrence G. Altadonna
  ------------------------------------------------------------------------------

Note that the listed officers are "Covered Officers" of each of the Fund listed
on Exhibit A.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>4
<FILENAME>c29840_ex99cert.txt
<TEXT>


                                                                      EX-99 cert


                            FORM N-CSR CERTIFICATION

I, Brian S. Shlissel, certify that:

1.       I have reviewed this report on the Form N-CSR of the Municipal
         Advantage Fund Inc.;

2.       Based on my knowledge, the report does not contain any untrue statement
         of a material fact or omit to state a material fact necessary to make
         the statements made, in light of the circumstances under which such
         statements were made, not misleading with respect to the period covered
         by the report;

3.       Based on my knowledge, the financial statements, and other financial
         information included in this report, fairly present in all material
         respects the financial condition, results of operations, changes in net
         assets, and cash flows (if the financial statements are required to
         include a statement of cash flows) of the registrant as of, and for,
         the periods in the report:

4.       The registrant's other certifying officers and I are responsible for
         establishing and maintaining disclosure controls and procedures (as
         defined in Rule 30a-2(c) under the Investment Company Act of 1940) for
         the registrant and have:

         (a)      Designed such disclosure controls and procedures to ensure
                  that material information relating to the registrant,
                  including its consolidated subsidiaries, is made known to us
                  by others within those entities, particularly during the
                  period in which this report is being prepared:

         (b)      Evaluated the effectiveness of the registrant's disclosure
                  controls and procedures as of a date within 90 days prior to
                  the filing date of this report (the "Evaluation Date"); and

         (c)      Presented in this report our conclusions about the
                  effectiveness of the disclosure controls and procedures based
                  on our evaluation as of the Evaluation Date;

5.       The registrant's other certifying officers and I have disclosed, based
         on our most recent evaluation, to the registrant's auditors and the
         audit committee of the registrant's board of directors (or persons
         performing the equivalent functions):

         (a)      All significant deficiencies in the design or operation of
                  internal controls which could adversely affect the
                  registrant's ability to record, process, summarize, and report
                  financial data and have identified for the registrant's
                  auditors any material weaknesses in internal controls; and

         (b)      Any fraud, whether or not material, that involves management
                  or other employees who have a significant role in the
                  registrant's internal controls; and

6.       The registrant's other certifying officers and I have indicated in this
         report whether or not there were significant changes in internal
         controls or in other factors that could significantly affect internal
         controls subsequent to the date of most recent evaluation, including
         any corrective actions with regard to significant deficiencies and
         material weaknesses.


Dated: January 2, 2004

/s/ Brian S. Shlissel
- ---------------------
Brian S. Shlissel
President and Chief Executive Officer

<PAGE>


                            FORM N-CSR CERTIFICATION

I, Lawrence G. Altadonna, certify that:

1.       I have reviewed this report on the Form N-CSR of the Municipal
         Advantage Fund Inc.;

2.       Based on my knowledge, the report does not contain any untrue statement
         of a material fact or omit to state a material fact necessary to make
         the statements made, in light of the circumstances under which such
         statements were made, not misleading with respect to the period covered
         by the report;

3.       Based on my knowledge, the financial statements, and other financial
         information included in this report, fairly present in all material
         respects the financial condition, results of operations, changes in net
         assets, and cash flows (if the financial statements are required to
         include a statement of cash flows) of the registrant as of, and for,
         the periods in the report:

4.       The registrant's other certifying officers and I are responsible for
         establishing and maintaining disclosure controls and procedures (as
         defined in Rule 30a-2(c) under the Investment Company Act of 1940) for
         the registrant and have:

         (a)      Designed such disclosure controls and procedures to ensure
                  that material information relating to the registrant,
                  including its consolidated subsidiaries, is made known to us
                  by others within those entities, particularly during the
                  period in which this report is being prepared:

         (b)      Evaluated the effectiveness of the registrant's disclosure
                  controls and procedures as of a date within 90 days prior to
                  the filing date of this report (the "Evaluation Date"); and

         (c)      Presented in this report our conclusions about the
                  effectiveness of the disclosure controls and procedures based
                  on our evaluation as of the Evaluation Date;

5.       The registrant's other certifying officers and I have disclosed, based
         on our most recent evaluation, to the registrant's auditors and the
         audit committee of the registrant's board of directors (or persons
         performing the equivalent functions):

         (a)      All significant deficiencies in the design or operation of
                  internal controls which could adversely affect the
                  registrant's ability to record, process, summarize, and report
                  financial data and have identified for the registrant's
                  auditors any material weaknesses in internal controls; and

         (b)      Any fraud, whether or not material, that involves management
                  or other employees who have a significant role in the
                  registrant's internal controls; and

6.       The registrant's other certifying officers and I have indicated in this
         report whether or not there were significant changes in internal
         controls or in other factors that could significantly affect internal
         controls subsequent to the date of most recent evaluation, including
         any corrective actions with regard to significant deficiencies and
         material weaknesses.


Dated: January 2, 2004

/s/ Lawrence G. Altadonna
- -------------------------
Lawrence G. Altadonna
Treasurer



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906
<SEQUENCE>5
<FILENAME>c29840_ex99-906cert.txt
<TEXT>


                                                                   EX-99.906CERT


Pursuant to 18 U.S.C ss. 1350, the undersigned officer of Municipal Advantage
Fund Inc. (the "Registrant"), hereby certifies, to the best of his knowledge,
that the Registrant's report on Form N-CSR for the period ended October 31, 2003
(the "Report") fully complies with the requirements of Section 13(a) or 15(d),
as applicable, of the Securities Exchange Act of 1934, as amended, and that the
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Registrant.

Dated: January 2, 2004

By /s/ Brian S. Shlissel
- ------------------------
Brian S. Shlissel
President and Chief Executive Officer

A signed original of this written statement required by Section 906, or other
document authenticating, acknowledging, or otherwise adopting the signature that
appears in typed form within the version of this written statement required by
Section 906, has been provided to Municipal Advantage Fund Income and will be
retained by Municipal Advantage Fund Inc. and furnished to the Securities and
Exchange Commission or its staff upon request.

This certification is being furnished solely pursuant to 18 U.S.C. ss 1350 and
is not being filed as part of the Report or as a separate disclosure document.


Pursuant to 18 U.S.C ss. 1350, the undersigned officer of Municipal Advantage
Fund Inc. (the "Registrant"), hereby certifies, to the best of his knowledge,
that the Registrant's report on Form N-CSR for the period ended October 31, 2003
(the "Report") fully complies with the requirements of Section 13(a) or 15(d),
as applicable, of the Securities Exchange Act of 1934, as amended, and that the
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Registrant.

Dated: January 2, 2004

By /s/ Lawrence G. Altadonna
- ----------------------------
Lawrence G. Altadonna
Treasurer

A signed original of this written statement required by Section 906, or other
document authenticating, acknowledging, or otherwise adopting the signature that
appears in typed form within the version of this written statement required by
Section 906, has been provided to Municipal Advantage Fund Inc. and will be
retained by Municipal Advantage Fund Inc. and furnished to the Securities and
Exchange Commission or its staff upon request.

This certification is being furnished solely pursuant to 18 U.S.C. ss 1350 and
is not being filed as part of the Report or as a separate disclosure document.


</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
