UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  SCHEDULE 14A

          Proxy Statement Pursuant to Section 14(a) of the Securities
                     Exchange Act of 1934 (Amendment No.  )

Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]

Check the appropriate box:

[X]  Preliminary Proxy Statement.
[ ]  CONFIDENTIAL, FOR USE OF THE COMMISSION ONLY (AS PERMITTED BY
     RULE 14a-6(e)(2)).
[ ]  Definitive Proxy Statement.
[ ]  Definitive Additional Materials.
[ ]  Soliciting Material Pursuant to Section 240.14A-11(c) or Section 240.14a-12

                     NUVEEN FLOATING RATE INCOME FUND (JFR)
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                (Name of Registrant as Specified In Its Charter)

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    (Name of Person(s) Filing Proxy Statement if other than the Registrant)

Payment of Filing Fee (check the appropriate box):

[X]  No fee required.

[ ]  Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.

     1) Title of each class of securities to which transaction applies:

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     2) Aggregate number of securities to which transaction applies:

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     3) Per unit price or other underlying value of transaction computed
         pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
         filing fee is calculated and state how it was determined):

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     4) Proposed maximum aggregate value of transaction:

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     5) Total fee paid:

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[ ]  Fee paid previously with preliminary materials.

[ ]  Check box if any part of the fee is offset as provided by Exchange Act
     Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
     paid previously. Identify the previous filing by registration statement
     number, or the Form or Schedule and the date of its filing.

     1) Amount Previously Paid:

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     2) Form, Schedule or Registration Statement No.:

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     3) Filing Party:

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     4) Date Filed:

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                                IMPORTANT NOTICE
                              TO FUND SHAREHOLDERS
                                 JULY 26, 2005

Although we recommend that you read the complete Proxy Statement, for your
convenience, we have provided a brief overview of the issues to be voted on.

Q.  WHY AM I RECEIVING THIS PROXY STATEMENT?

A. Pursuant to an investment management agreement between your Fund and Nuveen
   Asset Management ("NAM"), NAM has served as your Fund's investment adviser
   and has been responsible for the overall investment strategy of your Fund. In
   addition, for certain Funds, NAM entered into an investment sub-advisory
   agreement pursuant to which a sub-adviser was retained to furnish investment
   advisory services to the Fund. NAM is a wholly-owned subsidiary of Nuveen
   Investments, Inc. ("Nuveen"). Nuveen is a publicly traded company and, until
   recently, was a majority-owned subsidiary of The St. Paul Travelers
   Companies, Inc. ("St. Paul Travelers").

     As part of St. Paul Travelers' previously announced three-part program to
     sell its entire equity interest in Nuveen (the "Sale"), St. Paul Travelers
     sold 39.3 million shares of Nuveen through a secondary public offering on
     April 12, 2005. Nuveen also repurchased $600 million of its shares from St.
     Paul Travelers. The repurchase of these shares is being completed through
     two steps--a $200 million repurchase that closed on April 12, 2005, and a
     $400 million forward purchase (plus interest) that will settle later this
     year. Finally, St. Paul Travelers also entered into an agreement with two
     other parties to sell approximately 12 million common shares of Nuveen for
     settlement later this year. After completion of the Sale, Nuveen will
     emerge as a fully independent public company.

     Upon completion of the Sale, the investment management agreement between
     your Fund and NAM and the sub-advisory agreement between NAM and the
     sub-adviser of your Fund may be terminated. In order for NAM and the
     sub-advisers to continue to serve as investment adviser and sub-adviser
     after the completion of the Sale, the shareholders of your Fund must
     approve a new investment management agreement and a new sub-advisory
     agreement. The enclosed Proxy Statement gives you additional information on
     the proposed new investment management agreement and new sub-advisory
     agreement, as well as certain other matters. The Board of Trustees of each
     Fund (the "Board," and each Trustee, a "Board Member"), including those
     Board Members who are not affiliated with NAM or any sub-adviser,
     [unanimously] recommend that you vote FOR the approval of the new
     investment management agreement and new sub-advisory agreement, if
     applicable, for your Fund.

     Please refer to the Proxy Statement for a detailed explanation of the items
     you are being asked to vote on.

Q.  WHY IS A VOTE ON THE PROPOSED NEW INVESTMENT MANAGEMENT AGREEMENT AND
     SUB-ADVISORY AGREEMENT REQUIRED?

A. The completion of the Sale could be deemed to be an "assignment," as that
   term is defined in the Investment Company Act of 1940 ("1940 Act"), of the
   investment


management agreement between each Fund and NAM and the sub-advisory agreement
between NAM and your Fund's sub-adviser. As required by the 1940 Act, under its
terms, each investment management agreement and sub-advisory agreement would
     automatically terminate in the event of its assignment. As a result,
     shareholder approval of a new investment management agreement and, if
     applicable, a new sub-advisory agreement will permit NAM and each
     sub-adviser to continue to serve your Fund.

Q.  WHAT WILL HAPPEN IF SHAREHOLDERS DO NOT APPROVE THE NEW INVESTMENT
     MANAGEMENT AGREEMENT OR SUB-ADVISORY AGREEMENT?

A. If the new investment management agreement or sub-advisory agreement is not
   approved, your Fund's Board will take such actions as it deems to be in the
   best interests of your Fund. This is discussed in more detail in the Proxy
   Statement.

Q.  HOW WILL THE SALE AFFECT ME AS A FUND SHAREHOLDER?

A. Your investment in your Fund will not change as a result of the Sale. You
   will still own the same shares in the Fund, and the value of your investment
   will not change as a result of the Sale. The new investment management
   agreement and sub-advisory agreement, if approved by shareholders, will still
   be with NAM and the same sub-adviser and the terms of the new investment
   management agreement and sub-advisory agreement are substantially identical
   to the terms of the original investment management agreement and sub-advisory
   agreement. In addition, the portfolio managers of your Fund will not change
   as a result of the new investment management agreement and sub-advisory
   agreement.

Q.  WILL THE INVESTMENT MANAGEMENT AND SUB-ADVISORY FEE RATES BE THE SAME UPON
    THE APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT AND SUB-ADVISORY
    AGREEMENT?

A. Yes, the investment management and sub-advisory fee rates will remain the
   same.

Q.  HOW DO THE BOARD MEMBERS SUGGEST THAT I VOTE IN CONNECTION WITH THE NEW
    INVESTMENT MANAGEMENT AGREEMENT AND SUB-ADVISORY AGREEMENT?

A. After careful consideration, the Board of your Fund unanimously recommends
   that you vote "FOR" the approval of the new investment management and
   sub-advisory agreement.

Q.  WILL MY VOTE MAKE A DIFFERENCE?

A. Your vote is needed to ensure that the proposals can be acted upon.
   Additionally, your immediate response will help save on the costs of any
   future solicitations for these shareholder votes. We encourage all
   shareholders to participate in the governance of their Fund.


Q.  WHO DO I CALL IF I HAVE QUESTIONS?

A. If you need any assistance, or have any questions regarding the proposals or
   how to vote your shares, please call your financial advisor. Alternatively,
   you may call Nuveen at (800) 257-8787 weekdays from 8:00 a.m. to 6:00 p.m.
   Central time.

Q.  HOW DO I VOTE MY SHARES?

A. You can vote your shares by completing and signing the enclosed proxy card,
   and mailing it in the enclosed postage-paid envelope. Alternatively, you may
   vote by telephone by calling the toll-free number on the proxy card or by
   computer by going to the Internet address provided on the proxy card and
   following the instructions, using your proxy card as a guide.

Q.  WILL ANYONE CONTACT ME?

A. You may receive a call to verify that you received your proxy materials, to
   answer any questions you may have about the proposals and to encourage you to
   vote.


                                                           
NOTICE OF SPECIAL MEETING                                     333 West Wacker Drive
OF SHAREHOLDERS                                               Chicago, Illinois
JULY 26, 2005                                                 60606
                                                              (800) 257-8787



JUNE    , 2005

NUVEEN DIVERSIFIED DIVIDEND AND INCOME FUND (JDD)
NUVEEN EQUITY PREMIUM INCOME FUND (JPZ)
NUVEEN EQUITY PREMIUM OPPORTUNITY FUND (JSN)
NUVEEN FLOATING RATE INCOME FUND (JFR)
NUVEEN FLOATING RATE INCOME OPPORTUNITY FUND (JRO)
NUVEEN PREFERRED AND CONVERTIBLE INCOME FUND (JPC)
NUVEEN PREFERRED AND CONVERTIBLE INCOME FUND 2 (JQC)
NUVEEN REAL ESTATE INCOME FUND (JRS)
NUVEEN QUALITY PREFERRED INCOME FUND (JTP)
NUVEEN QUALITY PREFERRED INCOME FUND 2 (JPS)
NUVEEN QUALITY PREFERRED INCOME FUND 3 (JHP)
NUVEEN SENIOR INCOME FUND (NSL)
NUVEEN TAX-ADVANTAGED FLOATING RATE FUND (JFP)
NUVEEN TAX-ADVANTAGED TOTAL RETURN STRATEGY FUND (JTA)

TO THE SHAREHOLDERS OF THE ABOVE FUNDS:

Notice is hereby given that a Special Meeting of Shareholders (the "Meeting") of
Nuveen Diversified Dividend and Income Fund ("Diversified Dividend"), Nuveen
Equity Premium Income Fund ("Equity Premium"), Nuveen Equity Premium Opportunity
Fund ("Equity Premium Opportunity"), Nuveen Floating Rate Income Fund ("Floating
Rate"), Nuveen Floating Rate Income Opportunity Fund ("Floating Rate Income
Opportunity"), Nuveen Preferred and Convertible Income Fund ("Preferred and
Convertible"), Nuveen Preferred and Convertible Income Fund 2 ("Preferred and
Convertible 2"), Nuveen Real Estate Income Fund ("Real Estate"), Nuveen Quality
Preferred Income Fund ("Quality Preferred"), Nuveen Quality Preferred Income
Fund 2 ("Quality Preferred 2"), Nuveen Quality Preferred Income Fund 3 ("Quality
Preferred 3"), Nuveen Senior Income Fund ("Senior Income"), Nuveen Tax-
Advantaged Floating Rate Fund ("Tax-Advantaged Floating Rate") and Nuveen
Tax-Advantaged Total Return Strategy Fund ("Total Return"), each a Massachusetts
business trust (individually, a "Fund" and collectively, the "Funds"), will be
held (along with the meeting of shareholders of several other Nuveen funds) in
the Assembly Room of The Northern Trust Company, 50 South LaSalle Street,
Chicago, Illinois 60675, on Tuesday, July 26, 2005, at 10:30 a.m., Chicago time,
for the following purposes and to transact such other business, if any, as may
properly come before the Meeting:

MATTERS TO BE VOTED ON BY SHAREHOLDERS:

1. To approve a new investment management agreement between each Fund and Nuveen
   Asset Management ("NAM"), each Fund's investment adviser.


2. To approve a new sub-advisory agreement between NAM and each sub-adviser
   below:

     a. (For shareholders of Preferred and Convertible and Preferred and
        Convertible 2 only) to approve a new sub-advisory agreement between NAM
        and Froley, Revy Investment Co.;

     b. (For shareholders of Equity Premium and Equity Premium Opportunity only)
        to approve a new sub-advisory agreement between NAM and Gateway
        Investment Advisers, L.P.;

     c. (For shareholders of Diversified Dividend and Total Return only) to
        approve a new sub-advisory agreement between NAM and NWQ Investment
        Management Company, LLC;

     d. (For shareholders of Diversified Dividend and Real Estate only) to
        approve a new sub-advisory agreement between NAM and Security Capital
        Research & Management Incorporated;

     e. (For shareholders of Preferred and Convertible, Preferred and
        Convertible 2, Quality Preferred, Quality Preferred 2, Quality Preferred
        3 and Tax-Advantaged Floating Rate only) to approve a new sub-advisory
        agreement between NAM and Spectrum Asset Management, Inc.;

     f. (For shareholders of Diversified Dividend, Floating Rate, Floating Rate
        Income Opportunity, Preferred and Convertible, Preferred and Convertible
        2, Senior Income and Total Return only) to approve a new sub-advisory
        agreement between NAM and Symphony Asset Management LLC; and

     g. (For shareholders of Diversified Dividend only) to approve a new
        sub-advisory agreement between NAM and Wellington Management Company,
        LLC.

3. To transact such other business as may properly come before the Meeting.

Shareholders of record at the close of business on May 31, 2005 are entitled to
notice of and to vote at the Meeting.

ALL SHAREHOLDERS ARE CORDIALLY INVITED TO ATTEND THE MEETING. IN ORDER TO AVOID
DELAY AND ADDITIONAL EXPENSE, AND TO ASSURE THAT YOUR SHARES ARE REPRESENTED,
PLEASE VOTE AS PROMPTLY AS POSSIBLE, REGARDLESS OF WHETHER OR NOT YOU PLAN TO
ATTEND THE MEETING. YOU MAY VOTE BY MAIL, TELEPHONE OR OVER THE INTERNET. TO
VOTE BY MAIL, PLEASE MARK, SIGN, DATE AND MAIL THE ENCLOSED PROXY CARD. NO
POSTAGE IS REQUIRED IF MAILED IN THE UNITED STATES. TO VOTE BY TELEPHONE, PLEASE
CALL THE TOLL-FREE NUMBER LOCATED ON YOUR PROXY CARD AND FOLLOW THE RECORDED
INSTRUCTIONS, USING YOUR PROXY CARD AS A GUIDE. TO VOTE OVER THE INTERNET, GO TO
THE INTERNET ADDRESS PROVIDED ON YOUR PROXY CARD AND FOLLOW THE INSTRUCTIONS,
USING YOUR PROXY CARD AS A GUIDE.

Jessica R. Droeger
Vice President and Secretary


                                                           
JOINT PROXY STATEMENT                                         333 West Wacker Drive
                                                              Chicago, Illinois
                                                              60606
                                                              (800) 257-8787



JUNE    , 2005

NUVEEN DIVERSIFIED DIVIDEND AND INCOME FUND (JDD)
NUVEEN EQUITY PREMIUM INCOME FUND (JPZ)
NUVEEN EQUITY PREMIUM OPPORTUNITY FUND (JSN)
NUVEEN FLOATING RATE INCOME FUND (JFR)
NUVEEN FLOATING RATE INCOME OPPORTUNITY FUND (JRO)
NUVEEN PREFERRED AND CONVERTIBLE INCOME FUND (JPC)
NUVEEN PREFERRED AND CONVERTIBLE INCOME FUND 2 (JQC)
NUVEEN REAL ESTATE INCOME FUND (JRS)
NUVEEN QUALITY PREFERRED INCOME FUND (JTP)
NUVEEN QUALITY PREFERRED INCOME FUND 2 (JPS)
NUVEEN QUALITY PREFERRED INCOME FUND 3 (JHP)
NUVEEN SENIOR INCOME FUND (NSL)
NUVEEN TAX-ADVANTAGED FLOATING RATE FUND (JFP)
NUVEEN TAX-ADVANTAGED TOTAL RETURN STRATEGY FUND (JTA)

GENERAL INFORMATION

This Joint Proxy Statement is furnished in connection with the solicitation by
the Board of Trustees (each a "Board" and collectively, the "Boards," and each
Trustee, a "Board Member" and collectively, the "Board Members") of Nuveen
Diversified Dividend and Income Fund ("Diversified Dividend"), Nuveen Equity
Premium Income Fund ("Equity Premium"), Nuveen Equity Premium Opportunity Fund
("Equity Premium Opportunity"), Nuveen Floating Rate Income Fund ("Floating
Rate"), Nuveen Floating Rate Income Opportunity Fund ("Floating Rate Income
Opportunity"), Nuveen Preferred and Convertible Income Fund ("Preferred and
Convertible"), Nuveen Preferred and Convertible Income Fund 2 ("Preferred and
Convertible 2"), Nuveen Real Estate Income Fund ("Real Estate"), Nuveen Quality
Preferred Income Fund ("Quality Preferred"), Nuveen Quality Preferred Income
Fund 2 ("Quality Preferred 2"), Nuveen Quality Preferred Income Fund 3 ("Quality
Preferred 3"), Nuveen Senior Income Fund ("Senior Income"), Nuveen
Tax-Advantaged Floating Rate Fund ("Tax-Advantaged Floating Rate") and Nuveen
Tax-Advantaged Total Return Strategy Fund ("Total Return"), each a Massachusetts
business trust (each, a "Fund" and collectively, the "Funds"), of proxies to be
voted at a Special Meeting of Shareholders to be held (along with the meeting of
shareholders of several other Nuveen funds) in the Assembly Room of The Northern
Trust Company, 50 South LaSalle Street, Chicago, Illinois 60675, on Tuesday,
July 26, 2005, at 10:30 a.m., Chicago time, (for each Fund, a "Meeting" and
collectively, the "Meetings"), and at any and all adjournments thereof.

                           1


On the matters coming before each Meeting as to which a choice has been
specified by shareholders on the proxy, the shares will be voted accordingly. If
a proxy is returned and no choice is specified, the shares will be voted FOR
approval of the new investment management agreement and FOR the approval of the
new sub-advisory agreement. Shareholders who execute proxies may revoke them at
any time before they are voted by filing with that Fund a written notice of
revocation, by delivering a duly executed proxy bearing a later date or by
attending the Meeting and voting in person.

This Joint Proxy Statement is first being mailed to shareholders on or about
June   , 2005.

The Board of each Fund has determined that the use of this Joint Proxy Statement
for each Meeting is in the best interest of each Fund and its shareholders in
light of the similar matters being considered and voted on by the shareholders.

                           2


The following table indicates which shareholders are solicited with respect to
each matter:



- -------------------------------------------------------------------------------------
MATTER                                            COMMON SHARES   PREFERRED SHARES(1)
- -------------------------------------------------------------------------------------
                                                            
1. To approve a new investment management               X                 X
   agreement for the Fund
- -------------------------------------------------------------------------------------
2. To approve a new sub-advisory agreement              X                 X
   between NAM and each sub-adviser below:
  a. (For shareholders of Preferred and                 X                 X
     Convertible and Preferred and Convertible 2
     only) to approve a new sub-advisory
     agreement between NAM and Froley, Revy
     Investment Co. ("Froley");
- -------------------------------------------------------------------------------------
  b. (For shareholders of Equity Premium and            X                N/A
     Equity Premium Opportunity only) to approve
     a new sub-advisory agreement between NAM
     and Gateway Investment Advisers, L.P.
     ("Gateway");
- -------------------------------------------------------------------------------------
  c. (For shareholders of Diversified Dividend          X                 X
     and Total Return only) to approve a new
     sub-advisory agreement between NAM and NWQ
     Investment Management Company, LLC ("NWQ");
- -------------------------------------------------------------------------------------
  d. (For shareholders of Diversified Dividend          X                 X
     and Real Estate only) to approve a new
     sub-advisory agreement between NAM and
     Security Capital Research & Management
     Incorporated ("SCRM");
- -------------------------------------------------------------------------------------
  e. (For shareholders of Preferred and                 X                 X
     Convertible, Preferred and Convertible 2,
     Quality Preferred, Quality Preferred 2,
     Quality Preferred 3 and Tax-Advantaged
     Floating Rate only) to approve a new
     sub-advisory agreement between NAM and
     Spectrum Asset Management, Inc.
     ("Spectrum");
- -------------------------------------------------------------------------------------
  f. (For shareholders of Diversified Dividend,         X                 X
     Floating Rate, Floating Rate Income
     Opportunity, Preferred and Convertible,
     Preferred and Convertible 2, Senior Income
     and Total Return only) to approve a new
     sub-advisory agreement between NAM and
     Symphony Asset Management LLC ("Symphony");
     and
- -------------------------------------------------------------------------------------
  g. (For shareholders of Diversified Dividend          X                 X
     only) to approve a new sub-advisory
     agreement between NAM and Wellington
     Management Company, LLC ("Wellington")
- -------------------------------------------------------------------------------------


(1) Taxable Auctioned Preferred and FundPreferred shares are referred to as
    "Preferred Shares."

A quorum of shareholders is required to take action at each Meeting. A majority
of the shares entitled to vote at each Meeting, represented in person or by
proxy, will constitute a quorum of shareholders at that Meeting. Votes cast by
proxy or in person at each Meeting will be tabulated by the inspectors of
election appointed for that Meeting. The inspectors of election will determine
whether or not a quorum is present at the Meeting. The inspectors of

                           3


election will treat abstentions and "broker non-votes" (i.e., shares held by
brokers or nominees, typically in "street name," as to which (i) instructions
have not been received from the beneficial owners or persons entitled to vote
and (ii) the broker or nominee does not have discretionary voting power on a
particular matter) as present for purposes of determining a quorum.

For purposes of determining the approval of the new investment management
agreement and sub-advisory agreement, abstentions and broker non-votes will be
treated as shares voted against the proposal. The details of the proposals to be
voted on by the shareholders of each Fund and the vote required for approval of
the proposals are set forth under the description of the proposals below.

Preferred Shares held in "street name" as to which voting instructions have not
been received from the beneficial owners or persons entitled to vote as of one
business day before the Meeting, or, if adjourned, one business day before the
day to which the Meeting is adjourned, and that would otherwise be treated as
"broker non-votes" may, pursuant to Rule 452 of the New York Stock Exchange, be
voted by the broker on the proposal in the same proportion as the votes cast by
all Preferred shareholders as a class who have voted on the proposal or in the
same proportion as the votes cast by all Preferred shareholders of the Fund who
have voted on that item. Rule 452 permits proportionate voting of Preferred
Shares with respect to a particular item if, among other things, (i) a minimum
of 30% of the Preferred Shares or shares of a series of Preferred Shares
outstanding has been voted by the holders of such shares with respect to such
item and (ii) less than 10% of the Preferred Shares or shares of a series of
Preferred Shares outstanding has been voted by the holders of such shares
against such item. For the purpose of meeting the 30% test, abstentions will be
treated as shares "voted" and for the purpose of meeting the 10% test,
abstentions will not be treated as shares "voted" against the item.

                           4


Those persons who were shareholders of record at the close of business on May
31, 2005 will be entitled to one vote for each share held. As of May 31, 2005,
the shares of the Funds were issued and outstanding as follows:



- ----------------------------------------------------------------------------------------------
    FUND                        TICKER SYMBOL*       COMMON SHARES       PREFERRED SHARES
- ----------------------------------------------------------------------------------------------
                                                                         
    Diversified Dividend           JDD                 [        ]        Series T    2,400
                                                                         Series W    2,400
- ----------------------------------------------------------------------------------------------
    Equity Premium                 JPZ                 [        ]        N/A
- ----------------------------------------------------------------------------------------------
    Equity Premium Opportunity     JSN                 [        ]        N/A
- ----------------------------------------------------------------------------------------------
    Floating Rate                  JFR                 [        ]        Series M    4,000
                                                                         Series T    4,000
                                                                         Series W    4,000
                                                                         Series F    4,000
- ----------------------------------------------------------------------------------------------
    Floating Rate Income           JRO                 [        ]        Series M    3,200
    Opportunity
                                                                         Series TH   3,200
                                                                         Series F    3,200
- ----------------------------------------------------------------------------------------------
    Preferred and Convertible      JPC                 [        ]        Series M    4,720
                                                                         Series T    4,720
                                                                         Series W    4,720
                                                                         Series Th   4,720
                                                                         Series F    4,720
                                                                         Series F2   4,720
- ----------------------------------------------------------------------------------------------
    Preferred and Convertible 2    JQC                 [        ]        Series M    3,860
                                                                         Series M2   3,860
                                                                         Series T    3,860
                                                                         Series T2   3,860
                                                                         Series W    3,860
                                                                         Series W2   3,860
                                                                         Series Th   3,860
                                                                         Series Th2  3,860
                                                                         Series F    3,860
                                                                         Series F2   3,860
- ----------------------------------------------------------------------------------------------
    Real Estate                    JRS                 [        ]        Series M    1,720
                                                                         Series T    1,720
                                                                         Series W    1,720
                                                                         Series F    1,720
- ----------------------------------------------------------------------------------------------
    Quality Preferred              JTP                 [        ]        Series M    3,520
                                                                         Series T    3,520
                                                                         Series W    3,520
                                                                         Series Th   3,520
                                                                         Series F    3,520
- ----------------------------------------------------------------------------------------------
    Quality Preferred 2            JPS                 [        ]        Series M    4,800
                                                                         Series T    4,800
                                                                         Series T2   4,800
                                                                         Series W    4,800
                                                                         Series Th   4,800
                                                                         Series Th2  4,800
                                                                         Series F    4,800
- ----------------------------------------------------------------------------------------------


                           5




- ----------------------------------------------------------------------------------------------
    FUND                        TICKER SYMBOL*       COMMON SHARES       PREFERRED SHARES
- ----------------------------------------------------------------------------------------------
                                                                         
    Quality Preferred 3            JHP                 [        ]        Series M    3,320
                                                                         Series Th   3,320
- ----------------------------------------------------------------------------------------------
    Senior Income                  NSL                 [        ]        Series TH   1,840
- ----------------------------------------------------------------------------------------------
    Tax-Advantaged Floating        JFP                 [        ]        Series TH   3,120
    Rate
- ----------------------------------------------------------------------------------------------
    Total Return                   JTA                 [        ]        Series W    1,800
                                                                         Series F      312
- ----------------------------------------------------------------------------------------------


* The Common Shares of all of the Funds are listed on the New York Stock
  Exchange, except JRS, which is listed on the American Stock Exchange.

The number of shares of each Fund beneficially owned by each Board Member and by
the Board Members and officers of the Funds as a group as of December 31, 2004
is set forth in Appendix A. On December 31, 2004, Board Members and executive
officers as a group beneficially owned 1,196,807 shares of all funds managed by
Nuveen Asset Management ("NAM" or the "Adviser") (includes shares held by Board
Members through the Deferred Compensation Plan for Independent Board Members and
by executive officers in Nuveen's 401(k)/profit sharing plan). Each Board
Member's individual beneficial shareholdings of each Fund constituted less than
1% of the outstanding shares of each Fund. As of May 31, 2005, the Board Members
and executive officers as a group beneficially owned less than 1% of the
outstanding Common Shares of each Fund. As of May 31, 2005, no shareholder
beneficially owned more than 5% of any class of shares of any Fund.

1.  APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS

BACKGROUND

Under an investment management agreement between the Adviser and each Fund
(each, an "Original Investment Management Agreement" and collectively, the
"Original Investment Management Agreements"), NAM has served as each Fund's
investment adviser and has been responsible for each Fund's overall investment
strategy and its implementation. The date of each Fund's Original Investment
Management Agreement and the date on which it was last approved by shareholders
and approved for continuance by the Board is provided in Appendix B. NAM is a
wholly-owned subsidiary of Nuveen Investments, Inc. ("Nuveen"). Nuveen is a
publicly traded company and, until recently, was a majority-owned subsidiary of
The St. Paul Travelers Companies, Inc. ("St. Paul Travelers"), a publicly-traded
company that is principally engaged in providing property-liability insurance
through subsidiaries.

On March 25, 2005, Nuveen and St. Paul Travelers announced that St. Paul
Travelers planned to implement a three-part program to sell its equity interest
in Nuveen (the "Sale"). As part of St. Paul Travelers' previously announced
three-part divestiture program, St. Paul Travelers sold 39.3 million shares of
Nuveen's approximately 94 million outstanding common shares through a secondary
public offering on April 12, 2005. Nuveen also repurchased $600 million of its
common shares from St. Paul Travelers at a price of $32.98 per share, or
approximately 18.2 million shares. The repurchase of these shares is being
completed through two steps--a $200 million repurchase that closed on April 12,
2005, and a $400 million forward purchase (plus interest) that will settle later
this year. St. Paul Travelers also entered into an agreement with two other
parties to sell approximately 12 million common shares of Nuveen for settlement
later this year. Upon the closing of the secondary offering and the initial

                           6


repurchase by Nuveen as well as the closing for the forward sale transactions
later this year, Nuveen will emerge as a fully independent public company.

Each Original Investment Management Agreement, as required by Section 15 of the
Investment Company Act of 1940, as amended (the "1940 Act"), provides for its
automatic termination in the event of its "assignment" (as defined in the 1940
Act). Any change in control of the Adviser is deemed to be an assignment. The
consummation of the Sale may be deemed a change in control of the Adviser and
therefore cause the automatic termination of each Original Investment Management
Agreement, as required by the 1940 Act.

In anticipation of the Sale, each Board met in person at a joint meeting of each
Fund's Board on May 10-12, 2005 for purposes of, among other things, considering
whether it would be in the best interests of each Fund and its shareholders to
approve a new investment management agreement between the Fund and NAM (each, a
"New Investment Management Agreement" and collectively, the "New Investment
Management Agreements").

The 1940 Act requires that each New Investment Management Agreement be approved
by the Fund's shareholders in order for it to become effective. At the Board
meeting, and for the reasons discussed below (see "Board Considerations in
Approving New Investment Management Agreements and New Sub-Advisory Agreements"
after Proposal 2), each Board, including a majority of the Board Members who are
not parties to the Original Investment Management Agreements, New Investment
Management Agreements or any subadvisory agreement entered into by the Adviser
with respect to any Fund or who are not "interested persons" of the Funds or the
Adviser as defined in the 1940 Act (the "Independent Board Members"),
unanimously approved the New Investment Management Agreement and unanimously
recommended its approval by shareholders in order to assure continuity of
investment advisory services to the Fund after the Sale. In the event
shareholders of a Fund do not approve the New Investment Management Agreement,
the Board will take such action as it deems to be in the best interests of the
Fund and its shareholders. The form of the New Investment Management Agreement
is attached hereto as Appendix C.

COMPARISON OF ORIGINAL INVESTMENT MANAGEMENT AGREEMENT AND NEW INVESTMENT
MANAGEMENT AGREEMENT

The terms of each New Investment Management Agreement, including fees payable to
the Adviser by the Fund thereunder, are substantially identical to those of the
Original Investment Management Agreement, except for the date of effectiveness.
There is no change in the fee rate payable by each Fund to the Adviser. If
approved by shareholders of a Fund, the New Investment Management Agreement for
the Fund will expire on August 1, 2006, unless continued. Each New Investment
Management Agreement will continue in effect from year to year thereafter if
such continuance is approved for the Fund at least annually in the manner
required by the 1940 Act and the rules and regulations thereunder. Below is a
comparison of certain terms of the Original Investment Management Agreement to
the terms of the New Investment Management Agreement.

INVESTMENT MANAGEMENT SERVICES. The investment management services to be
provided by the Adviser to each Fund under the New Investment Management
Agreements will be identical to those services currently provided by the Adviser
to each Fund under the Original Investment Management Agreements. Both the
Original Investment Management Agreements and New Investment Management
Agreements provide that the Adviser shall manage

                           7


the investment and reinvestment of the Fund's assets in accordance with the
Fund's investment objective and policies and limitations and administer the
Fund's affairs to the extent requested by and subject to the supervision of the
Fund's Board. In addition, the investment management services will be provided
by the same Adviser personnel under the New Investment Management Agreements as
under the Original Investment Management Agreements. The Adviser does not
anticipate that the Sale will have any adverse effect on the performance of its
obligations under the New Investment Management Agreements.

FEES. Under each Original Investment Management Agreement and New Investment
Management Agreement, the Fund pays to the Adviser an investment management fee
that consists of two components--a fund-level component, based only on the
amount of assets within each individual Fund, and a complex-level component,
based on the aggregate managed assets (which includes assets attributable to all
types of leverage used in leveraged funds) of all Nuveen-branded closed-end and
open-end registered investment companies organized in the United States. The
investment management fee paid by each Fund equals the sum of the fund-level
component and complex-level component.

The fee schedules for the fund-level component and complex-level component to be
paid to the Adviser under the New Investment Management Agreements are identical
to the fund-level component and complex-level component paid to the Adviser
under the Original Investment Management Agreements. The annual fund-level
component for each Fund under the Original Investment Management Agreements and
the New Investment Management Agreements, the fees paid by each Fund to the
Adviser during each Fund's last fiscal year and the Fund's net assets as of May
1, 2005 are set forth in Appendix D to this Proxy Statement. The fee schedule
for the complex-level component is the same for each Fund under both the
Original Investment Management Agreements and New Investment Management
Agreements and is also set forth in Appendix D.

PAYMENT OF EXPENSES. Under each Original Investment Management Agreement and
each New Investment Management Agreement, the Adviser shall furnish office
facilities and equipment and clerical, bookkeeping and administrative services
(other than such services, if any, provided by the Fund's transfer agent) for
the Fund.

LIMITATION ON LIABILITY. The Original Investment Management Agreements and New
Investment Management Agreements provide that the Adviser will not be liable for
any loss sustained by reason of the purchase, sale or retention of any security,
whether or not such purchase, sale or retention shall have been based upon the
investigation and research made by any other individual, firm or corporation, if
such recommendation shall have been selected with due care and in good faith,
except loss resulting from willful misfeasance, bad faith or gross negligence on
the part of the Adviser in the performance of its obligations and duties, or by
reason of its reckless disregard of its obligations and duties under the
Agreement.

CONTINUANCE. The Original Investment Management Agreement of each Fund
originally was in effect for an initial term and could be continued thereafter
for successive one-year periods if such continuance was specifically approved at
least annually in the manner required by the 1940 Act. If the shareholders of a
Fund approve the New Investment Management Agreement for that Fund, the New
Investment Management Agreement will expire on August 1, 2006, unless continued.
The New Investment Management Agreement may be continued for successive one-year
periods if approved at least annually in the manner required by the 1940 Act.

                           8


TERMINATION. The Original Investment Management Agreement and New Investment
Management Agreement for each Fund provide that the Agreement may be terminated
at any time without the payment of any penalty by the Fund or the Adviser on
sixty (60) days' written notice to the other party. A Fund may effect
termination by action of the Board or with respect to any Fund by vote of a
majority of the outstanding voting securities of the Fund, accompanied by
appropriate notice.

INFORMATION ABOUT THE ADVISER

NAM, a registered investment adviser, is a wholly-owned subsidiary of Nuveen.
Founded in 1898, Nuveen and its affiliates had approximately $     billion in
assets under management as of           , 2005. Nuveen is a publicly traded
company and, until the consummation of the Sale, is a majority owned subsidiary
of St. Paul Travelers, 385 Washington Street, St. Paul, Minnesota 55102. Nuveen
is listed on the New York Stock Exchange and trades under the symbol "JNC."

The principal occupation of the officers and directors of NAM is shown in
Appendix E. The business address of NAM, Nuveen and each principal executive
officer and director of NAM is 333 West Wacker Drive, Chicago, Illinois 60606.

Board Member Schwertfeger sold           shares of Class A Stock of Nuveen on
the New York Stock Exchange since August 1, 2003. Mr. Schwertfeger received
$          in exchange for his shares of Nuveen sold.

SHAREHOLDER APPROVAL

To become effective with respect to a particular Fund, the New Investment
Management Agreement must be approved by a vote of a majority of the outstanding
voting securities of the Fund, with the Common and Preferred shareholders voting
together as a single class. The "vote of a majority of the outstanding voting
securities" is defined in the 1940 Act as the lesser of the vote of (i) 67% or
more of the shares of the Fund entitled to vote thereon present at the meeting
if the holders of more than 50% of such outstanding shares are present in person
or represented by proxy; or (ii) more than 50% of such outstanding shares of the
Fund entitled to vote thereon. Each New Investment Management Agreement was
approved by the Board of the respective Fund on behalf of the Funds after
consideration of all factors which it determined to be relevant to its
deliberations, including those discussed below. The Board of each Fund also
determined to submit the Fund's New Investment Management Agreement for
consideration by the shareholders of the Fund.

THE BOARD OF EACH FUND UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS OF THE FUND VOTE
FOR APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT.

2.  APPROVAL OF THE NEW SUB-ADVISORY AGREEMENTS

BACKGROUND

NAM entered into investment sub-advisory agreements (each, an "Original
Sub-Advisory Agreement" and collectively, the "Original Sub-Advisory
Agreements") with various

                           9


sub-advisers (each, a "Sub-Adviser" and collectively, the "Sub-Advisers") for
each Fund as set forth below:



- ------------------------------------------------------------------------------
FUND                                                  SUB-ADVISER
- ------------------------------------------------------------------------------
                                      
Diversified Dividend                       NWQ(1), SCRM(2), Symphony(3) and
                                                     Wellington(4)
Equity Premium                                        Gateway(5)
Equity Premium Opportunity                              Gateway
Floating Rate                                          Symphony
Floating Rate Income Opportunity                       Symphony
Preferred and Convertible                     Froley(6), Spectrum(7) and
                                                      Symphony(3)
Preferred and Convertible 2                   Froley(6), Spectrum(7) and
                                                      Symphony(3)
Real Estate                                              SCRM
Quality Preferred                                      Spectrum
Quality Preferred 2                                    Spectrum
Quality Preferred 3                                    Spectrum
Senior Income                                          Symphony
Tax-Advantaged Floating Rate                           Spectrum
Total Return                                    NWQ(1) and Symphony(3)
- ------------------------------------------------------------------------------


(1) NWQ Investment Management Company, LLC ("NWQ") is the sub-adviser only with
    respect to the Fund's dividend paying equity securities.

(2) Security Capital Research & Management Incorporated ("SCRM") is the
    sub-adviser only with respect to the Fund's REIT common stocks.

(3) Symphony Asset Management LLC ("Symphony") is the sub-adviser only with
    respect to the Fund's senior loans and other debt instruments.

(4) Wellington Management Company, LLC ("Wellington") is the sub-adviser only
    with respect to the Fund's emerging markets and sovereign debt.

(5) Gateway Investment Advisers, L.P. ("Gateway")

(6) Froley, Revy Investment Co. ("Froley") is the sub-adviser only with respect
    to the Fund's convertible securities.

(7) Spectrum Asset Management LLC ("Spectrum") is the sub-adviser only with
    respect to the Fund's preferred securities.

The date of each Original Sub-Advisory Agreement and the date it was last
approved by shareholders and approved for continuance by the Board is provided
in Appendix F.

As with the Original Investment Management Agreements, each Original
Sub-Advisory Agreement, as required by Section 15 of the 1940 Act, provides for
its automatic termination in the event of its assignment. A change in control of
the investment adviser or sub-adviser is deemed to be an assignment. The
completion of the Sale may be deemed a change in control of NAM and therefore
may be deemed an assignment of each Original Sub-Advisory Agreement resulting in
its automatic termination, as required by the 1940 Act. In addition, for NWQ and
Symphony, which are wholly-owned by Nuveen, the completion of the Sale may be
deemed a change in control of NWQ and Symphony and therefore may be deemed an
assignment of each Original Sub-Advisory Agreement resulting in its automatic
termination, as required by the 1940 Act.

In anticipation of the Sale, the Board of each Fund met in person on May 10-12,
2005 for purposes of considering whether it would be in the best interests of
each Fund and its shareholders to approve a new sub-advisory agreement between
NAM and the respective Sub-Adviser (each a "New Sub-Advisory Agreement" and
collectively, the "New Sub-Advisory

                           10


Agreements"). At the Board meeting, and for the reasons discussed below (see
"Board Considerations in Approving New Investment Management Agreements and New
Sub-Advisory Agreements"), the Board of each Fund, including a majority of the
Independent Board Members, unanimously determined that the Fund's New
Sub-Advisory Agreement was in the best interests of the Fund and its
shareholders and approved the Fund entering into the New Sub-Advisory Agreement,
subject to the consummation of the Sale and approval by shareholders.

The 1940 Act requires that each New Sub-Advisory Agreement be approved by that
Fund's shareholders in order for it to become effective. The Board of each Fund
unanimously recommends that shareholders approve the New Sub-Advisory Agreement.
In the event shareholders of a Fund do not approve the New Sub-Advisory
Agreement, the Board will take such action as it deems to be in the best
interests of the Fund and its shareholders. The form of the New Sub-Advisory
Agreement is attached hereto as Appendix G.

COMPARISON OF ORIGINAL SUB-ADVISORY AGREEMENT AND NEW SUB-ADVISORY AGREEMENT

The terms of each New Sub-Advisory Agreement, including fees payable to the
Sub-Adviser by NAM thereunder, are substantially identical to those of the
Original Sub-Advisory Agreement, except for the date of effectiveness. There is
no change in the fee rate payable by NAM to the Sub-Adviser. If approved by
shareholders of a Fund, the New Sub-Advisory Agreement for the Fund will expire
on August 1, 2006, unless continued. Each New Sub-Advisory Agreement will
continue in effect from year to year thereafter if such continuance is approved
for the Fund at least annually in the manner required by the 1940 Act and the
rules and regulations thereunder. Below is a comparison of certain terms of the
Original Sub-Advisory Agreements to the terms of the New Sub-Advisory
Agreements.

ADVISORY SERVICES. The advisory services to be provided by the Sub-Adviser to
each Fund under the New Sub-Advisory Agreements will be identical to those
advisory services currently provided by the Sub-Adviser to each Fund under the
Original Sub-Advisory Agreements. Both the Original Sub-Advisory Agreements and
New Sub-Advisory Agreements provide that the Sub-Adviser will furnish an
investment program in respect of, make investment decisions for and place all
orders for the purchase and sale of securities for the portion of the Fund's
investment portfolio allocated by the Adviser to the Sub-Adviser, all on behalf
of the Fund and subject to supervision of the Fund's Board and the Adviser. In
performing its duties under both the Original Sub-Advisory Agreements and the
New Sub-Advisory Agreements, the Sub-Adviser will monitor the Fund's investments
and will comply with the provisions of the Fund's Declaration of Trust and
By-Laws and the stated investment objectives, policies and restrictions of the
Fund. It is not anticipated that the Sale will have any adverse effect on the
performance of a Sub-Adviser's obligations under the New Sub-Advisory
Agreements.

BROKERAGE. Both the Original Sub-Advisory Agreements and New Sub-Advisory
Agreements authorize the Sub-Adviser to select the brokers or dealers that will
execute the purchases and sales of portfolio securities for the Funds, subject
to its obligation to obtain best execution under the circumstances, which may
take account of the overall quality of brokerage and research services provided
to the Sub-Adviser.

Preferred and Convertible, Preferred and Convertible 2, Quality Preferred,
Quality Preferred 2, Quality Preferred 3, and Tax-Advantaged Floating Rate paid
affiliated brokerage commissions

                           11


within the last fiscal year to           , which is a           of Spectrum, the
Sub-Adviser to each Fund. The affiliated brokerage commission paid by each Fund
is shown in Appendix H.

FEES. Under both the Original Sub-Advisory Agreements and New Sub-Advisory
Agreements, the Adviser pays the Sub-Adviser a portfolio management fee out of
the investment management fee it receives from the Fund. The rate of the
portfolio management fees payable by the Adviser to the Sub-Adviser under the
New Sub-Advisory Agreements is identical to the rate of the fees paid under the
Original Sub-Advisory Agreements. The annual rate of portfolio management fees
payable to the Sub-Adviser under the Original Sub-Advisory Agreements and the
New Sub-Advisory Agreements and the fees paid by the Adviser to the Sub-Adviser
with respect to each Fund during each Fund's last fiscal year is set forth in
Appendix I to this Proxy Statement. Appendix I also includes the advisory fee
rates and net assets of Funds not included in this Proxy Statement advised by
each Sub-Adviser with similar investment objectives as the Funds the Sub-Adviser
sub-advises.

PAYMENT OF EXPENSES. Under each Original Sub-Advisory Agreement and New
Sub-Advisory Agreement, the Sub-Adviser agrees to pay all expenses it incurs in
connection with its activities under the Agreement other than the cost of
securities (including brokerage commissions and other related expenses)
purchased for the Fund.

LIMITATION ON LIABILITY. The Original Sub-Advisory Agreements and New
Sub-Advisory Agreements provide that the Sub-Adviser will not be liable for, and
the Adviser will not take any action against the Sub-Adviser to hold the
Sub-Adviser liable for, any error of judgment or mistake of law or for any loss
suffered by the Fund in connection with the performance of the Sub-Adviser's
duties under the Agreement, except for a loss resulting from willful
misfeasance, bad faith or gross negligence on the part of the Sub-Adviser in the
performance of duties under the Agreement, or by reason of its reckless
disregard of its obligations and duties under the Agreement.

CONTINUANCE. The Original Sub-Advisory Agreement of each Fund originally was in
effect for an initial term and could be continued thereafter for successive
one-year periods if such continuance was specifically approved at least annually
in the manner required by the 1940 Act. If the shareholders of a Fund approve
the New Sub-Advisory Agreement for that Fund, the New Sub-Advisory Agreement
will expire on           , 2005, unless continued. Thereafter, the New
Sub-Advisory Agreement may be continued for successive one-year periods if
approved at least annually in the manner required by the 1940 Act.

TERMINATION. The Original Sub-Advisory Agreement and New Sub-Advisory Agreement
for each Fund provide that the Agreement may be terminated at any time without
the payment of any penalty by NAM on sixty (60) days' written notice to the
Sub-Adviser. The Original Sub-Advisory Agreement and New Sub-Advisory Agreement
may also be terminated by a Fund with respect to that Fund by action of the
Fund's Board or by a vote of a majority of the outstanding voting securities of
that Fund, accompanied by 60 days' written notice.

The Original Sub-Advisory Agreement and New Sub-Advisory Agreement for each Fund
is also terminable with respect to that Fund at any time without the payment of
any penalty, by the Adviser, the Board or by vote of a majority of the
outstanding voting securities of that Fund in the event that it is established
by a court of competent jurisdiction that the Sub-Adviser or any of its officers
or directors has taken any action that results in a breach of the
representations of the Sub-Adviser set forth in the Agreement.

                           12


INFORMATION ABOUT SUB-ADVISERS

FROLEY. Froley manages the investment portfolios of Preferred and Convertible
and Preferred and Convertible 2. Froley specializes in the management of
convertible securities. Froley, a registered investment adviser, commenced
operations in 1975. As of           , 200  , Froley managed over $     billion
in assets. Froley is an independently managed wholly-owned subsidiary of First
Republic Bank, which is a publicly-traded commercial bank and wealth management
firm. The principal occupation of the officers and directors of Froley is shown
in Appendix J. The business address of Froley and each officer and director of
Froley is 10900 Wilshire Boulevard, Los Angeles, California 90024.

GATEWAY. Gateway manages the investment portfolios of Equity Premium and Equity
Premium Opportunity. Gateway specializes in the management of index option-based
strategies for managing risk in equity portfolios. Gateway is the investment
adviser to a mutual fund that invests in an integrated equity index option
strategy similar to that to be utilized by the Fund. Gateway also manages index
option-based strategies for another investment company, employee benefit plans,
high net worth individuals, endowments, foundations and other institutions.
Gateway, a registered investment adviser, and its predecessor commenced
operations in 1977. Gateway is a limited partnership and its majority-owner and
general partner is Gateway Investment Advisers, Inc. As of           , 200  ,
Gateway managed over $     billion in assets. The principal occupation of the
officers and directors of Gateway is shown in Appendix J. The business address
of Gateway and each officer and director of Gateway is Rockwood Tower, 3805
Edwards Road, Suite 600, Cincinnati, Ohio 45209.

NWQ. NWQ manages the investment portfolios of Diversified Dividend and Total
Return. Nuveen purchased NWQ on August 1, 2002. NWQ is organized as a
member-managed limited liability company, and its sole managing member is
Nuveen. NWQ has provided investment management services to institutions and high
net worth individuals since 1982. As of           , NWQ managed over $
billion in assets. The principal occupation of the officers and directors of NWQ
is shown in Appendix J. The business address of NWQ and each officer and
director of NWQ is 2409 Century Park East, 4th Floor, Los Angeles, California
90067.

SCRM. SCRM manages the investment portfolios of Diversified Dividend and Real
Estate. As of July 1, 2004, SCRM is a direct wholly-owned subsidiary of JPMorgan
Chase & Co. As of           , 200  , SCRM managed over $     billion in assets.
The principal occupation of the officers and directors of SCRM is shown in
Appendix J. The business address of SCRM and each officer and director of SCRM
is 11 South LaSalle Street, Chicago, Illinois 60603.

SPECTRUM. Spectrum manages the investment portfolios of Preferred and
Convertible, Preferred and Convertible 2, Quality Preferred, Quality Preferred
2, Quality Preferred 3, and Tax-Advantaged Floating Rate. Spectrum specializes
in the management of diversified preferred security portfolios for institutional
investors, including Fortune 500 companies, pension funds, insurance companies
and foundations. Spectrum, a registered investment adviser, commenced operations
in 1987. Spectrum is an independently managed wholly-owned subsidiary of
Principal Global Investors, LLC, which is part of Principal Financial Group
Inc., a publicly traded, diversified, insurance and financial services company.
As of           , Spectrum managed over $     billion in assets. The principal
occupation of the

                           13


officers and directors of Spectrum is shown in Appendix J. The business address
of Spectrum and each officer and director of Spectrum is 4 High Ridge Park,
Stamford, Connecticut 06905.

SYMPHONY. Symphony manages the investment portfolios of Diversified Dividend,
Floating Rate, Floating Rate Income Opportunity, Preferred and Convertible,
Preferred and Convertible 2, Senior Income, and Total Return. Symphony
specializes in the management of market neutral equity and debt strategies and
senior loan and other debt portfolios. Symphony, a registered investment
adviser, commenced operations in 1994. Symphony is an indirect wholly-owned
subsidiary of Nuveen. As of           , 200  , Symphony managed over [     ]
billion in assets. The principal occupation of the officers and directors of
Symphony is shown in Appendix J. The business address of Symphony and each
officer and director of Symphony is 555 California Street, San Francisco,
California 94104.

WELLINGTON. Wellington manages the investment portfolios of Diversified
Dividend. Wellington provides services to investment companies, employee benefit
plans, endowments, foundations and other institutions. Wellington manages assets
for clients using a broad range of equity and fixed-income approaches.
Wellington, a registered investment adviser, and its predecessor organizations
commenced operations in 1928. Wellington Management is a Massachusetts limited
liability partnership owned broadly by its 75 partners, all of whom are active
in the business. As of           , 200  , Wellington managed over [          ]
billion in assets. The principal occupation of the officers and directors of
Wellington is shown in Appendix J. The business address of Wellington and each
officer and director of Wellington is 75 State Street, Boston, Massachusetts
02109.

SHAREHOLDER APPROVAL

To become effective, each New Sub-Advisory Agreement must be approved by a vote
of a majority of the outstanding voting securities of the Fund, with the Common
and Preferred shareholders voting together as a single class. The "vote of a
majority of the outstanding voting securities" is defined in the 1940 Act as the
lesser of the vote of (i) 67% or more of the shares of the Fund entitled to vote
thereon present at the meeting if the holders of more than 50% of such
outstanding shares are present in person or represented by proxy; or (ii) more
than 50% of such outstanding shares of the Fund entitled to vote thereon. Each
New Sub-Advisory Agreement was approved by the Board after consideration of all
factors which it determined to be relevant to its deliberations, including those
discussed below. The Board also determined to submit the New Sub-Advisory
Agreement for consideration by the shareholders of the Fund.

THE BOARD OF EACH SUB-ADVISED FUND UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS OF
THE FUND VOTE FOR APPROVAL OF THE FUND'S NEW SUB-ADVISORY AGREEMENT.

BOARD CONSIDERATIONS IN APPROVING NEW INVESTMENT MANAGEMENT AGREEMENTS AND NEW
SUB-ADVISORY AGREEMENTS

At a meeting held on May 10-12, 2005, the Board of each Fund, including the
Independent Board Members, unanimously approved the New Investment Management
Agreement between each Fund and NAM and the New Sub-Advisory Agreement between
NAM and a Fund's respective sub-adviser (NAM and the Sub-Advisers are each, a
"Fund Adviser").

                           14


To assist the Board in its evaluation of an advisory contract with a Fund
Adviser, the Independent Board Members received a report in adequate time in
advance of their meeting which outlined, among other things, the services
provided by the Fund Adviser; the organization of the Fund Adviser, including
the responsibilities of various departments and key personnel; the Fund's past
performance as well as the Fund's performance compared to funds of similar
investment objectives compiled by an independent third party (a "Peer Group") as
described below and if available, with recognized or, in certain cases,
customized benchmarks; the profitability of the Fund Adviser and certain
industry profitability analyses for advisers to unaffiliated investment
companies; the expenses of the Fund Adviser in providing the various services;
the advisory fees of the Fund Adviser, including comparisons of such fees with
the management fees of comparable funds in its Peer Group as well as comparisons
of the Fund Adviser's management fees with the fees the Fund Adviser assesses to
other types of investment products or accounts, if any; the soft dollar
practices of the Fund Adviser; and the expenses of each Fund, including
comparisons of the Fund's expense ratios (after any fee waivers) with the
expense ratios of its Peer Group. This information supplements that received by
the Board throughout the year regarding Fund performance, expense ratios,
portfolio composition, trade execution and sales activity.

In addition to the foregoing materials, independent legal counsel to the
Independent Board Members provided, in advance of the meeting, a legal
memorandum outlining, among other things, the duties of the Board Members under
the 1940 Act as well as the general principles of relevant state law in
reviewing and approving advisory contracts; the requirements of the 1940 Act in
such matters; an adviser's fiduciary duty with respect to advisory agreements
and compensation; the standards used by courts in determining whether investment
company boards of directors have fulfilled their duties and factors to be
considered by the board in voting on advisory agreements.

At the Board meeting, NAM made a presentation to and responded to questions from
the Board. In addition, the Independent Board Members noted that each
Sub-Adviser also previously made written or oral presentations to the Board
providing the respective Sub-Adviser with the opportunity to explain its
investment strategies, discuss market conditions, and highlight any material
issues. Many of these presentations were part of site visits by the Board
throughout the year. After the presentations and after reviewing the written
materials, the Independent Board Members met privately with their legal counsel
to review the Board's duties in reviewing advisory contracts and consider the
renewal of the advisory contract. It is with this background that the Board
Members considered each advisory contract (which includes sub-advisory
contracts) with a Fund Adviser. The Independent Board Members, in consultation
with independent counsel, reviewed the factors set out in judicial decisions and
Securities and Exchange Commission directives relating to the renewal of
advisory contracts. As outlined in more detail below, the Board Members
considered all factors they believed relevant with respect to each Fund,
including the following: (a) the nature, extent and quality of the services to
be provided by the Fund Adviser; (b) the investment performance of the Fund and
the Fund Adviser; (c) the costs of the services to be provided and profits to be
realized by the Fund Adviser and its affiliates from the relationship with the
Fund; (d) the extent to which economies of scale would be realized as the Fund
grows; and (e) whether fee levels reflect these economies of scale for the
benefit of Fund investors.

                           15


A.  NATURE, EXTENT AND QUALITY OF SERVICES

In evaluating the nature, extent and quality of the respective Fund Adviser's
services, the Board Members reviewed information concerning the types of
services that a Fund Adviser or its affiliates provide and are expected to
provide to the Nuveen Funds; narrative and statistical information concerning
the Fund's performance record and how such performance compares to the Fund's
Peer Group and, if available, recognized benchmarks or, in certain cases,
customized benchmarks (as described in further detail in Section B below);
information describing the Fund Adviser's organization and its various
departments, the experience and responsibilities of key personnel, and available
resources. In the discussion of key personnel, the Board Members received
materials regarding the changes or additions in personnel of the applicable Fund
Adviser. The Board Members further noted the willingness of the personnel of NAM
to engage in open, candid discussions with the Board. The Board Members further
considered the quality of the Fund Adviser's investment process in making
portfolio management decisions, including any refinements or improvements to the
portfolio management processes, enhancements to technology and systems that are
available to portfolio managers, and any additions of new personnel which may
strengthen or expand the research and investment capabilities of the Fund
Adviser. In their review, the Board Members also noted that Nuveen won the
Lipper Award for Best Fund Family: Fixed Income-Large Asset Class, for 2004.
Given the Board Members' experience with the Funds, other Nuveen funds and the
Fund Advisers, the Board Members noted that they were familiar with and continue
to have a good understanding of the organization, operations and personnel of
the Fund Advisers.

In addition to advisory services, the Independent Board Members considered the
quality of the administrative or non-advisory services provided. In this regard,
NAM provides the Fund with such administrative and other services (exclusive of,
and in addition to, any such services provided by others for the Funds) and
officers and other personnel as are necessary for the operations of the
respective Fund. In addition to investment management services, NAM and its
affiliates provide each Fund with a wide range of services, including: preparing
shareholder reports; providing daily accounting; providing quarterly financial
statements; overseeing and coordinating the activities of other service
providers; administering and organizing Board meetings and preparing the Board
materials for such meetings; providing legal support (such as helping to prepare
registration statements, amendments thereto and proxy statements and responding
to regulatory inquiries); and performing other Fund administrative tasks
necessary for the operation of the respective Fund (such as tax reporting and
fulfilling regulatory filing requirements). In addition, in evaluating the
administrative services, the Board Members considered, in particular, a Fund
Adviser's policies and procedures for assuring compliance with applicable laws
and regulations in light of the new Securities and Exchange Commission
regulations governing compliance. The Board Members noted NAM's focus on
compliance and its compliance systems. In their review, the Board Members
considered, among other things, the additions of experienced personnel to NAM's
compliance group and modifications and other enhancements to NAM's computer
systems. In addition to the foregoing, the Board Members also noted that NAM
outsources certain services that cannot be replicated without significant costs
or at the same level of expertise. Such outsourcing has been a beneficial and
efficient use of resources by keeping expenses low while obtaining quality
services. Further, as the Funds utilize Sub-Advisers, the Board Members
considered NAM's ability and procedures to monitor the respective Sub-Adviser's
performance, business practices and compliance policies and procedures. In this
regard, the

                           16


Board Members noted the role of NAM's investment oversight committee, including
its increased personnel, the responsibilities and experience of the staff, and
procedures to monitor Sub-Advisers, including the use of site visits.

In addition to the above, in reviewing the variety of additional services that
NAM or its affiliates must provide to closed-end funds, such as the Funds, the
Independent Board Members determined that Nuveen's commitment to supporting the
secondary market for the common shares of its closed-end funds is particularly
noteworthy. In this regard, the Board Members noted Nuveen's efforts to sponsor
numerous forums for analysts and specialists regarding the various Nuveen
closed-end funds, its creation of a new senior position dedicated to providing
secondary market support services and enhancing communications with investors
and analysts, and its advertising and media relations efforts designed to raise
investor and analyst awareness of the closed-end funds.

In evaluating the services of the various Sub-Advisers, the Independent Board
Members noted that the Sub-Advisory Agreements were essentially agreements for
portfolio management services only and the respective Sub-Adviser was not
expected to supply other significant administrative services to the Funds.

Based on their review, the Board Members found that, overall, the nature, extent
and quality of services provided (and expected to be provided) to the Fund under
the Investment Management Agreement or Sub-Advisory Agreement, as applicable,
were of a high level and were quite satisfactory.

B.  THE INVESTMENT PERFORMANCE OF THE FUND AND FUND ADVISERS

As previously noted, the Board received a myriad of performance information
regarding each Fund and its Peer Group, if available. Among other things, the
Board received materials reflecting a Fund's historic performance, the Fund's
performance compared to its Peer Group (as available), its performance compared
to recognized and, in certain cases, customized benchmarks (as applicable). The
Board Members reviewed performance information including, among other things,
total return information compared with a Fund's Peer Group as well as recognized
and, in some cases, customized benchmarks for the one-, three- and five-year
periods (as applicable) ending December 31, 2004, subject to certain exceptions.
Certain Funds (e.g., Diversified Dividend) may not have comparable peers in
which case their performance was measured against custom benchmarks for
applicable periods during the life of the Fund. This information supplements the
Fund performance information provided to the Board at each of their quarterly
meetings. Based on their review, the Board Members considered the respective
Fund's absolute and relative investment performance over time had been
satisfactory.

C.  FEES, EXPENSES AND PROFITABILITY

FEES AND EXPENSES. In evaluating the management fees and expenses that a Fund is
expected to bear, the Board Members considered the Fund's current management fee
structure, the sub-advisory fee arrangements and the Fund's expected expense
ratios in absolute terms as well as compared with the fees and expense ratios of
the unaffiliated funds in its Peer Group. The Board Members reviewed the
financial information of the respective Fund Adviser, including its respective
revenues, expenses and profitability. In reviewing fees, the Board Members,
among other things, reviewed comparisons of the Fund's

                           17


gross management fees (fees after fund-level and complex-wide level breakpoints
but before reimbursement and fee waivers), net management fees (after
breakpoints and reimbursements and fee waivers) and total expense ratios (before
and after waivers) with those of the unaffiliated funds in its Peer Group and
peer averages. In this regard, the Board Members noted that the relative ranking
of the Nuveen Funds on fees and expenses was aided by the significant level of
fee reductions provided by the fund-level and complex-wide breakpoint schedules,
and the fee waivers and reimbursements provided by Nuveen for certain Funds
launched since 1999. The complex-wide breakpoint schedule was instituted in 2004
and is described in further detail below in Section D entitled "Economies of
Scale and Whether Fee Levels Reflect these Economies of Scale." In its review,
the Board Members noted that all taxable closed-end exchange-traded Funds had
net expense ratios below or within an acceptable range compared to peers.

COMPARISONS WITH THE FEES OF OTHER CLIENTS. The Board Members further compared
the fees of NAM to the fees NAM or an affiliate thereof assessed for other types
of clients (such as separate managed accounts as well as fees charged on funds
that are not offered by Nuveen but are sub-advised by one of Nuveen's investment
management teams). With respect to separately managed accounts, the advisory
fees to such separate managed accounts are generally lower than those charged to
the comparable Fund. The Board Members noted, however, the additional services
that are provided and the costs incurred by Nuveen in managing and operating
registered investment companies, such as the Funds, compared to individually
managed separate accounts. For instance, as described above, NAM and its
affiliates provide numerous services to the Funds including, but not limited to,
preparing shareholder reports; providing daily accounting; preparing quarterly
financial statements; overseeing and coordinating the activities of other
service providers; administering and organizing Board meetings and preparing the
Board materials for such meetings; providing legal support; and administering
all other aspects of the Fund's operations. Further, the Board Members noted the
increased compliance requirements for funds in light of new Securities and
Exchange Commission regulations and other legislation. These services are
generally not required to the same extent, if at all, for separate accounts. In
addition to the differences in services, the Board Members also considered,
among other things, the differences in product distribution, investor profiles
and account sizes. Accordingly, the Board Members believe that the nature and
number of services provided to operate a Fund merit the higher fees than those
to separate managed accounts.

In considering the fees of the Sub-Adviser, the Board Members also considered
the pricing schedule the Sub-Adviser charges for similar investment management
services for other fund sponsors or clients (except for Wellington for which
information was not made available). With respect to Symphony, the Board Members
also compared the sub-advisory fees to the significantly higher fees assessed to
hedge funds advised by Symphony. Generally, the sub-advisory fees were at the
lower end of the Sub-Adviser's fee schedule. In addition, the Board Members
noted that such sub-advisory fees and arrangements with the unaffiliated Sub-
Advisers were established through arms-length negotiations between the
respective Sub-Adviser and NAM.

PROFITABILITY OF FUND ADVISERS. In conjunction with its review of fees, the
Board Members also considered the profitability of NAM (which incorporated
Nuveen's wholly-owned subsidiaries--NWQ and Symphony) as well as the
profitability of the other Sub-Advisers. The Board Members reviewed the
respective Fund Adviser's revenues, expenses and
                           18


profitability margins (on both a pre-tax and after-tax basis). In reviewing
profitability, the Board Members recognized that one of the most difficult
issues in determining profitability is establishing a method of allocating
expenses. Accordingly, the Board Members reviewed a Fund Adviser's assumptions
and methodology of allocating expenses. In this regard, the methods of
allocation used appeared reasonable but the Board noted the inherent limitations
in allocating costs among various advisory products. The Board Members also
recognized that individual fund or product line profitability of other advisers
is generally not publicly available. Further, profitability may be affected by
numerous factors including the types of funds managed, expense allocations,
business mix, etc. and therefore comparability of profitability is somewhat
limited. Nevertheless, to the extent available, the Board Members considered the
respective Fund Adviser's profit margin compared to the profitability of various
publicly-traded investment management companies and/or investment management
companies that publicly disclose some or all of their financial results compiled
by three independent third-party service providers. The Board Members also
reviewed the revenues, expenses and profit margins of various unaffiliated
advisory firms with similar amounts of assets under management for the last year
prepared by NAM. Based on their review, the Board Members were satisfied that
each Fund Adviser's level of profitability from its relationship with each Fund
was reasonable in light of the services provided.

In evaluating the reasonableness of the compensation, the Board Members also
considered any other revenues paid to a Fund Adviser as well as any indirect
benefits (such as soft dollar arrangements, if any) the Fund Adviser and its
affiliates are expected to receive that are directly attributable to their
management of the Funds, if any. See Section E below for additional information.
Based on their review of the overall fee arrangements of the applicable Fund,
the Board Members determined that the advisory fees and expenses of the
respective Fund were reasonable.

D.  ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE

In reviewing the compensation, the Board Members have long understood the
benefits of economies of scale as the assets of a fund grows and have sought to
ensure that shareholders share in these benefits. One method for shareholders to
share in economies of scale is to include breakpoints in the advisory fee
schedules that reduce fees as fund assets grow. Accordingly, the Board Members
received and reviewed the schedules of advisory fees for each Fund, including
fund-level breakpoints thereto. In addition, after lengthy negotiations with
management, the Board in May 2004 approved a complex-wide fee arrangement
pursuant to which fees of the funds in the Nuveen complex, including the Funds,
are reduced as the assets in the fund complex reach certain levels. The
complex-wide fee arrangement was introduced on August 1, 2004 and the Board
Members reviewed data regarding the reductions of fees for the Funds for the
period of August 1, 2004 to December 31, 2004. In evaluating the complex-wide
fee arrangement, the Board Members considered, among other things, the historic
and expected fee savings to shareholders as assets grow, the amount of fee
reductions at various asset levels, and that the arrangement would extend to all
Funds in the Nuveen complex. The Board Members also considered the impact, if
any, the complex-wide fee arrangement may have on the level of services
provided. Based on their review, the Board Members concluded that the breakpoint
schedule and complex-wide fee arrangement currently was acceptable and desirable
in providing benefits from economies of scale to shareholders.

                           19


E.  INDIRECT BENEFITS

In evaluating fees, the Board Members also considered any indirect benefits or
profits the respective Fund Adviser or its affiliates may receive as a result of
its relationship with each Fund. In this regard, the Board Members considered
any benefits from soft dollar arrangements. The Board Members noted that
although NAM manages a large amount of assets, it has very little, if any,
brokerage to allocate. This is due to the fact that NAM typically manages the
portfolios of the municipal funds in the Nuveen complex and municipal bonds
generally trade on a principal basis. Accordingly, NAM does not currently have
any soft dollar arrangements and does not pay excess brokerage commissions (or
spreads on principal transactions) in order to receive research services. The
Board Members also considered the soft dollar arrangements of the Sub-Advisers.
The Board Members noted that Froley, Gateway, and NWQ have engaged in soft
dollar arrangements. With respect to such Sub-Advisers, the Board Members
considered that the respective Sub-Adviser benefits from its soft dollar
arrangements pursuant to which such Sub-Adviser receives research from brokers
that execute the applicable Fund's portfolio transactions. The Board Members
received and reviewed materials concerning such Sub-Adviser's brokerage
practices, including its broker allocation policies and procedures, the types of
research and brokerage services received, the brokers providing such services,
and the dollar amount of commissions allocated to brokers for soft dollar
arrangements for the last calendar year. In considering the types of research
received, the Board Members noted that each such Sub-Adviser either has already
limited (or has agreed to modify its practices to limit) the use of soft dollars
to research with intellectual content. The Board Members recognized that a
Sub-Adviser's profitability may be lower if the Sub-Adviser was required to pay
for this research with hard dollars. With respect to SCRM and Symphony, the
Board Members noted that these Sub-Advisers do not use soft dollar arrangements.
The Board Members also noted that Spectrum does not use soft dollar
arrangements. However, the Board Members also received materials and considered
any revenues received by Spectrum in executing trades through its internal
broker-dealer. Finally, with respect to Wellington, the Board Members noted that
while Wellington does have soft dollar arrangements with respect to some of its
agency trades, the trades in fixed income securities held in Diversified
Dividend are done on a principal basis and, therefore, do not generate soft
dollar credits.

In addition to soft dollar arrangements, the Board Members also considered any
other revenues, if any, received by NAM or its affiliates. In this regard, for
Funds with outstanding preferred shares and new closed-end funds, the Board
Members also considered revenues received by Nuveen for serving as agent for
broker-dealers at its preferred trading desk and for acting as co-manager in the
initial public offering of new closed-end exchange-traded funds.

F.  OTHER CONSIDERATIONS

Nuveen, until recently, was a majority owned subsidiary of St. Paul Travelers.
As noted, St. Paul Travelers earlier this year announced its intention to divest
its equity stake in Nuveen. Nuveen is the parent of NAM. Pursuant to a series of
transactions, St. Paul Travelers has begun to reduce its interest in Nuveen
which will ultimately result in a change of control of Nuveen and therefore NAM.
As mandated by the 1940 Act, such a change in control would result in an
assignment of the Investment Management Agreement with NAM and the automatic
termination of such agreement. Accordingly, the Board also considered the

                           20


approval of a New Investment Management Agreement with each Fund in light of,
and which would take effect upon, the anticipated change of control. More
specifically, the Board considered for each Fund a New Investment Management
Agreement on substantially identical terms to the existing Investment Management
Agreement, to take effect after the change of control has occurred and the
contract has been approved by Fund shareholders. In its review, the Board
considered whether the various transactions necessary to divest St. Paul
Travelers' interest will have an impact on the various factors they considered
in approving NAM, such as the scope and quality of services to be provided
following the change of control. In reviewing the St. Paul Travelers
transactions, the Board considered, among other things, the impact, if any, on
the operations and organizational structure of NAM; the possible benefits and
costs of the transactions to the respective Fund; the potential implications of
any arrangements used by Nuveen to finance certain of the transactions; the
ability of NAM to perform its duties after the transactions; whether a Fund's
fee structure or expense ratio would change; any changes to the current
practices of the respective Fund; any changes to the terms of the advisory
agreement; and any anticipated changes to the operations of NAM. Based on its
review, the Board determined that St. Paul Travelers' divestiture would not
affect the nature and quality of services provided by NAM, the terms of the
Investment Management Agreement, including the fees thereunder, and would not
materially affect the organization or operations of NAM. Accordingly, the Board
determined that their analysis of the various factors regarding their approval
of NAM would continue to apply after the change of control.

In addition to the foregoing, a change in control of NAM may be deemed an
assignment of the Sub-Advisory Agreement between NAM and the respective
Sub-Adviser. Further, NWQ and Symphony are wholly-owned subsidiaries of Nuveen.
Accordingly, the change of control of Nuveen would also result in a change of
control of such Sub-Advisers resulting in the automatic termination of their
existing Sub-Advisory Agreements. The Board therefore considered approval of a
New Sub-Advisory Agreement with each Sub-Adviser in light of the anticipated
change of control. More specially, the Board considered approval of each New
Sub-Advisory Agreement on substantially identical terms as the respective
Original Sub-Advisory Agreement, to take effect after the change of control has
occurred and the agreement has been approved by Fund shareholders. In reviewing
the impact of the St. Paul Travelers divesture on the respective Sub-Adviser,
the Board considered the same factors as outlined previously with respect to
their review of NAM. As with NAM, the Board concluded that the St. Paul
Travelers divestiture would not affect the nature and quality of services
provided by the respective Sub-Adviser, the terms of the Sub-Advisory Agreement,
including the fees paid thereunder, and would not materially affect the
organization or operations of the Sub-Adviser. Accordingly, the Board determined
that their analysis of the various factors regarding their review and approval
of the respective Sub-Adviser would continue to apply following the change in
control.

G.  APPROVAL

The Board Members did not identify any single factor discussed previously as
all-important or controlling. The Board Members, including a majority of
Independent Board Members, concluded that the terms of the Investment Management
and Sub-Advisory Agreements were fair and reasonable, that the respective Fund
Adviser's fees are reasonable in light of the services provided to each Fund,
that the renewal of the NAM Investment Management Agreement and each
Sub-Advisory Agreement should be approved, and that the new, post-
                           21


change of control NAM Investment Management Agreement and the Sub-Advisory
Agreements be approved and recommended to shareholders.

ADDITIONAL INFORMATION

SHAREHOLDER PROPOSALS

To be considered for presentation at the annual meeting of shareholders of the
Funds to be held in 2006, a shareholder proposal submitted pursuant to Rule
14a-8 of the Securities Exchange Act of 1934 must be received at the offices of
that Fund, 333 West Wacker Drive, Chicago, Illinois 60606, not later than
          , 200 . A shareholder wishing to provide notice in the manner
prescribed by Rule 14a-4(c)(1) of a proposal submitted outside of the process of
Rule 14a-8 must submit such written notice to the Fund not later than
          , 200 . Timely submission of a proposal does not mean that such
proposal will be included in a proxy statement.

SHAREHOLDER COMMUNICATIONS

Shareholders who want to communicate with the Board or any individual Board
Member should write their Fund to the attention of Lorna Ferguson, Manager of
Fund Board Relations, Nuveen Investments, 333 West Wacker Drive, Chicago,
Illinois 60606. The letter should indicate that you are a Fund shareholder. If
the communication is intended for a specific Board Member and so indicates it
will be sent only to that Board Member. If a communication does not indicate a
specific Board Member it will be sent to the chair of the nominating and
governance committee and the outside counsel to the Independent Board Members
for further distribution as deemed appropriate by such persons.

EXPENSES OF PROXY SOLICITATION

The cost of preparing, printing and mailing the enclosed proxy, accompanying
notice and proxy statement and all other costs in connection with the
solicitation of proxies will be paid by           . Solicitation may be made by
letter or telephone by officers or employees of Nuveen or the Adviser, or by
dealers and their representatives.

FISCAL YEAR

The last fiscal year end for each Fund, except Senior Income, Total Return,
Equity Premium Opportunity and Tax-Advantaged Floating Rate, was December 31,
2004. The last fiscal year end for Senior Income and Total Return was July 31,
2004. Equity Premium Opportunity and Tax-Advantage Floating Rate have inception
dates of January 26, 2005 and March 28, 2005, respectively, and have not
completed a full fiscal year.

ANNUAL REPORT DELIVERY

Annual reports will be sent to shareholders of record of each Fund following
each Fund's fiscal year end. Each Fund will furnish, without charge, a copy of
its annual report and/or semi-annual report as available upon request. Such
written or oral requests should be

                           22


directed to such Fund at 333 West Wacker Drive, Chicago, Illinois 60606 or by
calling 1-800-257-8787.

Please note that only one annual report or proxy statement may be delivered to
two or more shareholders of a Fund who share an address, unless the Fund has
received instructions to the contrary. To request a separate copy of an annual
report or proxy statement, or for instructions as to how to request a separate
copy of such documents or as to how to request a single copy if multiple copies
of such documents are received, shareholders should contact the applicable Fund
at the address and phone number set forth above.

GENERAL

Management does not intend to present and does not have reason to believe that
any other items of business will be presented at the Meetings. However, if other
matters are properly presented to the Meetings for a vote, the proxies will be
voted by the persons acting under the proxies upon such matters in accordance
with their judgment of the best interests of the Fund.

A list of shareholders entitled to be present and to vote at each Meeting will
be available at the offices of the Funds, 333 West Wacker Drive, Chicago,
Illinois, for inspection by any shareholder during regular business hours
beginning ten days prior to the date of the Meetings.

Failure of a quorum to be present at any Meeting will necessitate adjournment
and will subject that Fund to additional expense. The persons named in the
enclosed proxy may also move for an adjournment of any Meeting to permit further
solicitation of proxies with respect to any of the proposals if they determine
that adjournment and further solicitation is reasonable and in the best
interests of the shareholders. Under each Fund's By-Laws, an adjournment of a
meeting requires the affirmative vote of a majority of the shares present in
person or represented by proxy at the meeting.

IF YOU CANNOT BE PRESENT AT THE MEETING, YOU ARE REQUESTED TO FILL IN, SIGN AND
RETURN THE ENCLOSED PROXY PROMPTLY. NO POSTAGE IS REQUIRED IF MAILED IN THE
UNITED STATES.

Jessica R. Droeger
Vice President and Secretary

          , 2005

                           23


                                                                      APPENDIX A



                                      FUND SHARES OWNED BY BOARD MEMBERS AND OFFICERS(1)
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
                                                                                       FLOATING
                                                               EQUITY                      RATE     PREFERRED         PREFERRED
                                DIVERSIFIED      EQUITY       PREMIUM    FLOATING        INCOME           AND               AND
BOARD MEMBER                       DIVIDEND     PREMIUM   OPPORTUNITY        RATE   OPPORTUNITY   CONVERTIBLE    CONVERTIBLE(2)
- -------------------------------------------------------------------------------------------------------------------------------
                                                                                           
Robert P. Bremner.............       3,200            0            0            0            0         3,500               0
Lawrence H. Brown.............           0            0            0            0            0         1,000               0
Jack B. Evans.................           0            0            0            0            0         3,500               0
William C. Hunter.............           0            0            0            0            0             0               0
David J. Kundert..............           0            0            0            0            0             0               0
William J. Schneider..........         650        3,250            0        1,000            0         1,000               0
Timothy R. Schwertfeger.......           0            0            0            0            0           200               0
Judith M. Stockdale...........         585            0            0            0            0             0               0
Eugene S. Sunshine............           0            0            0            0            0             0               0
ALL BOARD MEMBERS AND OFFICERS
  AS A GROUP..................       1,805        3,620            0        1,000            0        10,200           1,000
- -------------------------------------------------------------------------------------------------------------------------------




                                   FUND SHARES OWNED BY BOARD MEMBERS AND OFFICERS(1)
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
                                                                                                        TAX-
                                                                                                  ADVANTAGED
                                     REAL     QUALITY        QUALITY        QUALITY      SENIOR     FLOATING       TOTAL
         BOARD MEMBER              ESTATE   PREFERRED   PREFERRED(2)   PREFERRED(3)      INCOME         RATE      RETURN
- ------------------------------------------------------------------------------------------------------------------------
                                                                                          
Robert P. Bremner.............          0           0            0              0             0           0       12,500
Lawrence H. Brown.............      1,000       1,000        1,000          1,000         1,000           0            0
Jack B. Evans.................      1,000           0        8,400              0         5,000           0            0
William C. Hunter.............          0           0            0              0             0           0            0
David J. Kundert..............          0           0            0              0             0           0            0
William J. Schneider..........          0           0            0              0             0           0            0
Timothy R. Schwertfeger.......     25,000           0       50,000              0        49,000           0       73,000
Judith M. Stockdale...........          0           0            0              0             0           0            0
Eugene S. Sunshine............          0       2,000        2,000              0             0           0            0
ALL BOARD MEMBERS AND OFFICERS
  AS A GROUP..................     30,824       3,103       61,700          1,000        59,525           0       85,800
- ------------------------------------------------------------------------------------------------------------------------


(1) The numbers include share equivalents of certain Nuveen funds in which the
    Board Member is deemed to be invested pursuant to the Deferred Compensation
    Plan for Independent Board Members. The information as to beneficial
    ownership is based on statements furnished by each Board Member and officer.

                                       A-1


                                                                      APPENDIX B

                           DATES RELATING TO ORIGINAL
                      INVESTMENT MANAGEMENT AGREEMENTS(1)



- --------------------------------------------------------------------------------------------
                                                      DATE ORIGINAL            DATE ORIGINAL
                          DATE OF ORIGINAL    INVESTMENT MANAGEMENT    INVESTMENT MANAGEMENT
                                INVESTMENT       AGREEMENT WAS LAST       AGREEMENT WAS LAST
                                MANAGEMENT              APPROVED BY             APPROVED FOR
FUND                             AGREEMENT             SHAREHOLDERS     CONTINUANCE BY BOARD
- --------------------------------------------------------------------------------------------
                                                              
Diversified Dividend         July 30, 2003       September 24, 2003             May 11, 2005
Equity Premium            October 25, 2004         October 22, 2004                      N/A
Equity Premium
  Opportunity             January 26, 2005         January 21, 2005                      N/A
Floating Rate            February 24, 2004           March 10, 2004             May 11, 2005
Floating Rate Income
  Opportunity                June 22, 2004            June 22, 2004                      N/A
Preferred and
  Convertible               March 14, 2003           March 25, 2003             May 11, 2005
Preferred and
  Convertible 2               May 15, 2003            June 24, 2003             May 11, 2005
Real Estate                   May 14, 2002        November 15, 2001             May 11, 2005
Quality Preferred             June 1, 2002            June 18, 2002             May 11, 2005
Quality Preferred 2         August 1, 2002       September 19, 2002             May 11, 2005
Quality Preferred 3      December 18, 2002        December 16, 2002             May 11, 2005
Senior Income               August 1, 2002         October 25, 1999             May 11, 2005
Tax-Advantaged
  Floating Rate             March 24, 2005           March 16, 2005                      N/A
Total Return             November 20, 2003         January 12, 2004             May 11, 2005
- --------------------------------------------------------------------------------------------


(1) The Original Investment Management Agreements were between the Funds and
    Nuveen Institutional Advisory Corp. ("NIAC"). Effective January 1, 2005,
    NIAC was merged into NAM. As a result, NIAC became a part of NAM and ceased
    to exist separately. NAM assumed all of NIAC's obligations under the
    Original Investment Management Agreements. Like NIAC, NAM is a wholly-owned
    subsidiary of Nuveen. The merger did not constitute a change in control.
    There was no change in who manages the Funds or in the Funds' investment
    objectives or policies as a result of the merger.

                                       B-1


                                                                      APPENDIX C

              [INSERT FORM OF NEW INVESTMENT MANAGEMENT AGREEMENT]

                                       C-1


                                                                      APPENDIX D

                            COMPLEX-LEVEL FEE RATES



- ----------------------------------------------------------------------
COMPLEX DAILY NET ASSETS                                      FEE RATE
- ----------------------------------------------------------------------
                                                           
First $55 billion                                              0.2000%
Next $1 billion                                                0.1800%
Next $1 billion                                                0.1600%
Next $3 billion                                                0.1425%
Next $3 billion                                                0.1325%
Next $3 billion                                                0.1250%
Next $5 billion                                                0.1200%
Next $5 billion                                                0.1175%
Next $15 billion                                               0.1150%
- ----------------------------------------------------------------------


                FUND-LEVEL FEE RATES, AGGREGATE MANAGEMENT FEES
                              PAID AND NET ASSETS



- -------------------------------------------------------------------------------------------------------
                                                                          FEES PAID
                                                                        TO THE ADVISER
                           FUND AVERAGE DAILY NET                        DURING LAST        NET ASSETS
FUND                               ASSETS               FEE RATE(1)     FISCAL YEAR(2)     AS OF 5/1/05
- -------------------------------------------------------------------------------------------------------
                                                                               
Diversified Dividend   For the first $500 million         0.7000%     [$3,882,007(3)(4)]      [    ]
                       For the next $500 million          0.6750%
                       For the next $500 million          0.6500%
                       For the next $500 million          0.6250%
                       For net assets over $2 billion     0.6000%
- -------------------------------------------------------------------------------------------------------
Equity Premium         For the first $500 million         0.7000%     [$1,071,112(5)(6)]      [    ]
                       For the next $500 million          0.6750%
                       For the next $500 million          0.6500%
                       For the next $500 million          0.6250%
                       For net assets over $2 billion     0.6000%
- -------------------------------------------------------------------------------------------------------
Equity Premium
  Opportunity          For the first $500 million         0.7000%               [N/A(5)]      [    ]
                       For the next $500 million          0.6750%
                       For the next $500 million          0.6500%
                       For the next $500 million          0.6250%
                       For net assets over $2 billion     0.6000%
- -------------------------------------------------------------------------------------------------------
Floating Rate          For the first $500 million         0.6500%     [$2,505,311(4)(7)]      [    ]
                       For the next $500 million          0.6250%
                       For the next $500 million          0.6000%
                       For the next $500 million          0.5750%
                       For net assets over $2 billion     0.5500%
- -------------------------------------------------------------------------------------------------------


                                       D-1




- -------------------------------------------------------------------------------------------------------
                                                                          FEES PAID
                                                                        TO THE ADVISER
                           FUND AVERAGE DAILY NET                        DURING LAST        NET ASSETS
FUND                               ASSETS               FEE RATE(1)     FISCAL YEAR(2)     AS OF 5/1/05
- -------------------------------------------------------------------------------------------------------
                                                                               
Floating Rate Income
  Opportunity          For the first $500 million         0.6500%        [$17,837(5)(9)]      [    ]
                       For the next $500 million          0.6250%
                       For the next $500 million          0.6000%
                       For the next $500 million          0.5750%
                       For net assets over $2 billion     0.5500%
- -------------------------------------------------------------------------------------------------------
Preferred and
  Convertible          For the first $500 million         0.7000%       [$18,870,178(4)]      [    ]
                       For the next $500 million          0.6750%
                       For the next $500 million          0.6500%
                       For the next $500 million          0.6250%
                       For net assets over $2 billion     0.6000%
                       For the first $500 million         0.7000%
                       For the next $500 million          0.6750%
                       For the next $500 million          0.6500%
- -------------------------------------------------------------------------------------------------------
Preferred and
  Convertible 2        For the next $500 million          0.6250%       [$25,051,089(4)]      [    ]
                       For net assets over $2 billion     0.6000%
- -------------------------------------------------------------------------------------------------------
Real Estate            For the first $500 million         0.7000%        [$6,419,524(5)]      [    ]
                       For the next $500 million          0.6750%
                       For the next $500 million          0.6500%
                       For the next $500 million          0.6250%
                       For net assets over $2 billion     0.6000%
- -------------------------------------------------------------------------------------------------------
Quality Preferred      For the first $500 million         0.7000%       [$12,143,659(4)]      [    ]
                       For the next $500 million          0.6750%
                       For the next $500 million          0.6500%
                       For the next $500 million          0.6250%
                       For net assets over $2 billion     0.6000%
- -------------------------------------------------------------------------------------------------------
Quality Preferred 2    For the first $500 million         0.7000%       [$22,539,893(4)]      [    ]
                       For the next $500 million          0.6750%
                       For the next $500 million          0.6500%
                       For the next $500 million          0.6250%
                       For net assets over $2 billion     0.6000%
- -------------------------------------------------------------------------------------------------------
Quality Preferred 3    For the first $500 million         0.7000%        [$4,672,478(4)]      [    ]
                       For the next $500 million          0.6750%
                       For the next $500 million          0.6500%
                       For the next $500 million          0.6250%
                       For net assets over $2 billion     0.6000%
- -------------------------------------------------------------------------------------------------------


                                       D-2




- -------------------------------------------------------------------------------------------------------
                                                                          FEES PAID
                                                                        TO THE ADVISER
                           FUND AVERAGE DAILY NET                        DURING LAST        NET ASSETS
FUND                               ASSETS               FEE RATE(1)     FISCAL YEAR(2)     AS OF 5/1/05
- -------------------------------------------------------------------------------------------------------
                                                                               
Senior Income          For the first $1 billion           0.6500%       [$3,337,507(10)]      [    ]
                       For the next $1 billion            0.6375%
                       For the next $3 billion            0.6250%
                       For the next $5 billion            0.6000%
                       For net assets over $10 billion    0.5750%
- -------------------------------------------------------------------------------------------------------
Tax-Advantaged
  Floating Rate        For the first $500 million         0.7000%               [N/A(5)]      [    ]
                       For the next $500 million          0.6750%
                       For the next $500 million          0.6500%
                       For the next $500 million          0.6250%
                       For net assets over $2 billion     0.6000%
- -------------------------------------------------------------------------------------------------------
Total Return           For the first $500 million         0.7000%        [$2,974,827(4)]      [    ]
                       For the next $500 million          0.6750%
                       For the next $500 million          0.6500%
                       For the next $500 million          0.6250%
                       For net assets over $2 billion     0.6000%
- -------------------------------------------------------------------------------------------------------


 (1) The fee rates shown above went into effect on August 1, 2004. Prior to
     August 1, 2004, the investment management fee paid by each Fund was
     calculated using the above fund-level fee rates plus 0.20% at each
     breakpoint asset level. There was no complex-level component of the
     investment management fee.

 (2) Prior to January 1, 2005, investment management services were provided to
     the Funds by Nuveen Institutional Advisory Corp. ("NIAC"). Effective
     January 1, 2005, NIAC merged into NAM. As a result, NIAC became a part of
     NAM and ceased to exist separately. Prior to the reorganization, management
     fees were paid to NIAC. Currently and under the New Investment Management
     Agreements, all management fees will be paid to NAM. Like NAM, NIAC was a
     wholly-owned subsidiaries of Nuveen.

 (3) For the period September 30, 2004 (commencement of operations) through
     fiscal year end December 31, 2004.

 (4) Includes fee waiver of 0.32%.

 (5) Includes fee waiver of 0.30%.

 (6) For the period October 26, 2004 (commencement of operations) through fiscal
     year end December 31, 2004.

 (7) For the period March 25, 2004 (commencement of operations) through fiscal
     year end July 31, 2004.

 (9) For the period July 27, 2004 (commencement of operations) through fiscal
     year end July 31, 2004.

(10) Includes a fee waiver of 0.45%.

                                       D-3


                                                                      APPENDIX E

                           OFFICERS AND DIRECTORS OF
                        NUVEEN ASSET MANAGEMENT ("NAM")



- ---------------------------------------------------------------------------------
NAME                                       PRINCIPAL OCCUPATION
- ---------------------------------------------------------------------------------
                       
John P. Amboian           President and Director of Nuveen Investments, Inc.,
                          Nuveen Asset Management, Nuveen Investments, LLC,
                          Rittenhouse Asset Management, Inc., Nuveen Investments
                          Advisers Inc. and Nuveen Investments Holdings, Inc.
Alan Berkshire            Senior Vice President, Secretary and General Counsel of
                          Nuveen Investments, Inc., Nuveen Asset Management,
                          Nuveen Investments, LLC, Rittenhouse Asset Management,
                          Inc. and Nuveen Investments Holdings, Inc.; Senior Vice
                          President and Secretary of Nuveen Investments Advisers
                          Inc.; Assistant Secretary of NWQ Investment Management
                          Company, LLC and Secretary of Symphony Asset
                          Management, LLC.
Peter H. D'Arrigo         Vice President of Nuveen Investments, LLC and Nuveen
                          Asset Management; Assistant Vice President and
                          Treasurer of Nuveen Investments, Inc.; Assistant
                          Treasurer of NWQ Investments Management Company, LLC;
                          Vice President and Treasurer of Nuveen Rittenhouse
                          Asset Management, Inc.; Vice President and Treasurer of
                          funds in Nuveen Fund complex.
Jessica R. Droeger        Vice President and Assistant Secretary of Nuveen Asset
                          Management; Assistant General Counsel of Nuveen
                          Investments, LLC; Vice President and Secretary of funds
                          in Nuveen fund complex.
William M. Fitzgerald     Managing Director of Nuveen Asset Management; Vice
                          President of Nuveen Investments Advisers Inc.; Vice
                          President of funds in Nuveen fund complex.
James D. Grassi           Vice President and Deputy Director of Compliance of
                          Nuveen Investments, LLC, Nuveen Asset Management,
                          Nuveen Investments Advisers Inc. and Rittenhouse Asset
                          Management, Inc.; Vice President and Chief Compliance
                          Officer of funds in Nuveen fund complex.
Mary E. Keefe             Managing Director of Nuveen Investments, Inc.; Managing
                          Director and Chief Compliance Officer of Nuveen Asset
                          Management, Nuveen Investments, LLC, Nuveen Investments
                          Advisers Inc., Nuveen Investments Institutional
                          Services Group LLC and Rittenhouse Asset Management,
                          Inc.
Larry W. Martin           Vice President, Assistant Secretary and Assistant
                          General Counsel of Nuveen Investments, LLC, Nuveen
                          Investments, Inc. and Rittenhouse Asset Management,
                          Inc.; .Vice President and Assistant Secretary of Nuveen
                          Asset Management and Nuveen Investments Advisers Inc.;
                          Assistant Secretary of NWQ Investment Management
                          Company, LLC; Vice President and Assistant Secretary of
                          funds in Nuveen fund complex.


                                       E-1




- ---------------------------------------------------------------------------------
NAME                                       PRINCIPAL OCCUPATION
- ---------------------------------------------------------------------------------
                       
Timothy R.
Schwertfeger              Chairman and Director of Nuveen Investments, Inc.,
                          Nuveen Asset Management and Nuveen Investments, LLC;
                          Director of Institutional Capital Corporation; Chairman
                          and Director of Rittenhouse Asset Management, Inc.;
                          Chairman of Nuveen Investments Advisers, Inc.; Chairman
                          of the Board and Board Member of funds in Nuveen fund
                          complex.
Margaret E. Wilson        Senior Vice President, Finance of Nuveen Investments,
                          Inc., Nuveen Asset Management, Nuveen Investments, LLC,
                          Rittenhouse Asset Management, Inc., Nuveen Investments
                          Advisers Inc. and Nuveen Investments Holdings, Inc.
Gifford R. Zimmerman      Managing Director, Assistant Secretary and Associate
                          General Counsel of Nuveen Investments, LLC and Nuveen
                          Asset Management; Managing Director and Assistant
                          Secretary of Nuveen Investments, Inc.; Assistant
                          Secretary of NWQ Investment Management Company, LLC;
                          Vice President and Assistant Secretary of Nuveen
                          Investments Advisers Inc.; Managing Director, Associate
                          General Counsel and Assistant Secretary of Rittenhouse
                          Asset Management, Inc.; Chief Administrative Officer of
                          funds in Nuveen fund complex.
- ---------------------------------------------------------------------------------


                                       E-2


                                                                      APPENDIX F

                   DATES RELATING TO SUB-ADVISORY AGREEMENTS



- ----------------------------------------------------------------------------------------------------
                                                                                       DATE ORIGINAL
                                                                      DATE ORIGINAL     SUB-ADVISORY
                                                                       SUB-ADVISORY    AGREEMENT WAS
                                               DATE OF ORIGINAL       AGREEMENT WAS    LAST APPROVED
                                                   SUB-ADVISORY       LAST APPROVED  FOR CONTINUANCE
FUND                             SUB-ADVISER       AGREEMENT(S)     BY SHAREHOLDERS         BY BOARD
- ----------------------------------------------------------------------------------------------------
                                                                         
Diversified Dividend     NWQ, Wellington and  July 30, 2003      September 24, 2003   May 11, 2005
                         Symphony
                         SCRM                 March 24, 2004     March 24, 2004       May 11, 2005
Equity Premium           Gateway              October 25, 2004   October 22, 2004     N/A
Equity Premium
  Opportunity            Gateway              January 26, 2005   January 21, 2005     N/A
Floating Rate            Symphony             February 24, 2004  March 10, 2004       May 11, 2005
Floating Rate Income
  Opportunity            Symphony             June 22, 2004      June 22, 2004        N/A
Preferred and
  Convertible            Froley and Spectrum  March 14, 2003     March 25, 2003       May 11, 2005
                         Symphony             December 1, 2004   [        ]           [        ]
Preferred and
  Convertible 2          Froley and Spectrum  May 15, 2003       June 24, 2003        May 11, 2005
                         Symphony             December 1, 2004   [        ]           [        ]
Real Estate              SCRM                 January 20, 2004   January 20, 2004     May 11, 2005
Quality Preferred        Spectrum             June 1, 2002       June 18, 2002        May 11, 2005
Quality Preferred 2      Spectrum             August 1, 2002     September 19, 2002   May 11, 2005
Quality Preferred 3      Spectrum             December 18, 2002  December 16, 2002    May 11, 2005
Senior Income            Symphony             August 1, 2002     October 25, 1999     May 11, 2005
Tax-Advantaged Floating
  Rate                   Spectrum             March 24, 2005     March 16, 2005       N/A
Total Return             NWQ and Symphony     November 20, 2003  January 12, 2004     May 11, 2005
- ----------------------------------------------------------------------------------------------------


                                       F-1


                                                                      APPENDIX G

                  [INSERT FORM OF NEW SUB-ADVISORY AGREEMENT]

                                       G-1


                                                                      APPENDIX H

                         BROKERAGE COMMISSIONS PAID TO
                            DURING LAST FISCAL YEAR



- ------------------------------------------------------------------------------------------
                                      AGGREGATE AMOUNT OF          PERCENTAGE OF AGGREGATE
FUND                        BROKERAGE COMMISSIONS PAID TO    BROKERAGE COMMISSIONS PAID TO
- ------------------------------------------------------------------------------------------
                                                       
Preferred and
  Convertible
Preferred and
Convertible 2
Real Estate
Quality Preferred
Quality Preferred 2
Quality Preferred 3
Tax-Advantaged Floating
Rate
- ------------------------------------------------------------------------------------------


                                       H-1


                                                                      APPENDIX I

                           SUB-ADVISORY FEE RATES AND
                        AGGREGATE SUB-ADVISORY FEES PAID



- ---------------------------------------------------------------------------------------------------------
                                                                   PERCENTAGE     FEES PAID
                                                                   OF THE NAM      TO THE
                                                                  ADVISORY FEE   SUB-ADVISER   NET ASSETS
                                       FUND AVERAGE DAILY NET       PAID TO      DURING LAST     AS OF
FUND                   SUB-ADVISER         ASSETS OF FUND         SUB-ADVISER    FISCAL YEAR     5/1/05
- ---------------------------------------------------------------------------------------------------------
                                                                                
Preferred and            Froley     Up to $500 million               40.0%
  Convertible                       Over $500 million                35.0%
- ---------------------------------------------------------------------------------------------------------
Preferred and            Froley     Up to $500 million               40.0%
  Convertible 2                     Over $500 million                35.0%
- ---------------------------------------------------------------------------------------------------------
Equity Premium           Gateway    Up to $200 million               55.0%
                                    $200 million to $300 million     52.5%
                                    $300 million and over            50.0%
- ---------------------------------------------------------------------------------------------------------
Equity Premium           Gateway    Up to $200 million               55.0%
  Opportunity                       $200 million to $300 million     52.5%
                                    $300 million and over            50.0%
- ---------------------------------------------------------------------------------------------------------
Diversified Dividend       NWQ      Up to $200 million               55.0%
                                    $200 million to $300 million     52.5%
                                    Over $300 million                50.0%
- ---------------------------------------------------------------------------------------------------------
Total Return               NWQ      Up to $200 million               55.0%
                                    $200 million to $300 million     52.5%
                                    Over $300 million                50.0%
- ---------------------------------------------------------------------------------------------------------
Diversified Dividend      SCRM      Up to $200 million               55.0%
                                    $200 million to $300 million     52.5%
                                    Over $300 million                50.0%
- ---------------------------------------------------------------------------------------------------------
Real Estate               SCRM      Up to $125 million               50.0%
                                    $125 million to $150 million     47.5%
                                    $150 million to $175 million     45.0%
                                    $175 million to $200 million     42.5%
                                    $200 million and over            40.0%
- ---------------------------------------------------------------------------------------------------------
Preferred and           Spectrum    Up to $500 million               40.0%
  Convertible                       Over $500 million                35.0%
- ---------------------------------------------------------------------------------------------------------
Preferred and           Spectrum    Up to $500 million               40.0%
  Convertible 2                     Over $500 million                35.0%
- ---------------------------------------------------------------------------------------------------------
Quality Preferred       Spectrum    Up to $125 million               50.0%
                                    $125 million to $150 million     47.5%
                                    $150 million to $175 million     45.0%
                                    $175 million to $200 million     42.5%
                                    $200 million and over            40.0%
- ---------------------------------------------------------------------------------------------------------


                                       I-1




- ---------------------------------------------------------------------------------------------------------
                                                                   PERCENTAGE     FEES PAID
                                                                   OF THE NAM      TO THE
                                                                  ADVISORY FEE   SUB-ADVISER   NET ASSETS
                                       FUND AVERAGE DAILY NET       PAID TO      DURING LAST     AS OF
FUND                   SUB-ADVISER         ASSETS OF FUND         SUB-ADVISER    FISCAL YEAR     5/1/05
- ---------------------------------------------------------------------------------------------------------
                                                                                
Quality Preferred 2     Spectrum    40.0% of the advisory fee
                                    paid to NAM for its services
                                    to the Fund
- ---------------------------------------------------------------------------------------------------------
Quality Preferred 3     Spectrum    Up to $500 million               40.0%
                                    Over $500 million                35.0%
- ---------------------------------------------------------------------------------------------------------
Tax-Advantaged          Spectrum    Up to $125 million               50.0%
  Floating Rate                     $125 million to $150 million     47.5%
                                    $150 million to $175 million     45.0%
                                    $175 million to $200 million     42.5%
                                    $200 million and over            40.0%
- ---------------------------------------------------------------------------------------------------------
Diversified Dividend    Symphony    Up to $125 million               50.0%
                                    $125 million to $150 million     47.5%
                                    $150 million to $175 million     45.0%
                                    $175 million to $200 million     42.5%
                                    $200 million and over            40.0%
- ---------------------------------------------------------------------------------------------------------
Floating Rate           Symphony    Up to $125 million               50.0%
                                    $125 million to $150 million     47.5%
                                    $150 million to $175 million     45.0%
                                    $175 million to $200 million     42.5%
                                    $200 million and over            40.0%
- ---------------------------------------------------------------------------------------------------------
Floating Rate Income    Symphony    Up to $125 million               50.0%
  Opportunity                       $125 million to $150 million     47.5%
                                    $150 million to $175 million     45.0%
                                    $175 million to $200 million     42.5%
                                    $200 million and over            40.0%
- ---------------------------------------------------------------------------------------------------------
Preferred and           Symphony    Up to $125 million               50.0%
  Convertible                       $125 million to $150 million     47.5%
                                    $150 million to $175 million     45.0%
                                    $175 million to $200 million     42.5%
                                    $200 million and over            40.0%
- ---------------------------------------------------------------------------------------------------------
Preferred and           Symphony    Up to $125 million               50.0%
  Convertible 2                     $125 million to $150 million     47.5%
                                    $150 million to $175 million     45.0%
                                    $175 million to $200 million     42.5%
                                    $200 million and over            40.0%
- ---------------------------------------------------------------------------------------------------------
Total Return            Symphony    Up to $125 million               50.0%
                                    $125 million to $150 million     47.5%
                                    $150 million to $175 million     45.0%
                                    $175 million to $200 million     42.5%
                                    $200 million and over            40.0%
- ---------------------------------------------------------------------------------------------------------


                                       I-2




- ---------------------------------------------------------------------------------------------------------
                                                                   PERCENTAGE     FEES PAID
                                                                   OF THE NAM      TO THE
                                                                  ADVISORY FEE   SUB-ADVISER   NET ASSETS
                                       FUND AVERAGE DAILY NET       PAID TO      DURING LAST     AS OF
FUND                   SUB-ADVISER         ASSETS OF FUND         SUB-ADVISER    FISCAL YEAR     5/1/05
- ---------------------------------------------------------------------------------------------------------
                                                                                
Diversified Dividend   Wellington   Up to $125 million               50.0%
                                    $125 million to $150 million     47.5%
                                    $150 million to $175 million     45.0%
                                    $175 million to $200 million     42.5%
                                    $200 million and over            40.0%
- ---------------------------------------------------------------------------------------------------------


  FEE RATES AND NET ASSETS OF OTHER FUNDS ADVISED BY SUB-ADVISERS WITH SIMILAR
                 INVESTMENT OBJECTIVES AS THE SUB-ADVISED FUNDS



                                                        Fee Rate
                                            ---------------------------------
                                            Fund Average Daily                     Net Assets
Sub-Adviser                 Similar Fund            Net Assets       Fee Rate    as of 5/1/05
- ---------------------------------------------------------------------------------------------
                                                                     
[        ]                   [        ]         [        ]         [        ]     [        ]
[        ]                   [        ]         [        ]         [        ]     [        ]
[        ]                   [        ]         [        ]         [        ]     [        ]
- ---------------------------------------------------------------------------------------------


                                       I-3


                                                                      APPENDIX J

                     OFFICERS AND DIRECTORS OF SUB-ADVISERS



- --------------------------------------------------------------------------------
SUB-ADVISER             NAME                      PRINCIPAL OCCUPATION
- --------------------------------------------------------------------------------
                                   
Froley       George A. Froley, III,
             Director, Chairman and
             Managing Director
             Jim Herbert, Director       President, Chief Executive Officer and
                                         Director of First Republic Bank.
             Katherine Auguste-DeWilde,  Chief Operating Officer, Executive Vice
             Director                    President and Director of First
                                         Republic.
             Ed Dobranski, Director      Senior Vice President, General Counsel
                                         and Secretary of First Republic Bank.
             Melinda Gordon, Director
             and Managing Director
             K. Andrea O'Connell,
             Director, President, Chief
             Executive Officer,
             Managing Director and
             Assistant Secretary
             Michael Revy, Managing      Director, Staub Holding AG, Emil-Staub
             Director and Senior Vice    Strasse 2, CH-8708 Mannedorf,
             President                   Switzerland. Private banker with
                                         Wechsler & Co., Inc. until 2002.
             James Barry, Managing
             Director and Senior Vice
             President
             Ravi Malik, Managing
             Director and Senior Vice
             President
             Warren Chun, First Vice
             President
             Mike Opre, Vice President
             Monica Erickson, Vice
             President
             Steve Wachtel, Vice
             President
             David Epstein, Vice
             President
             Kim Nicholas, Vice
             President, Assistant
             Secretary and Chief
             Financial
             Officer/Controller
             Melissa Shanahan, Vice
             President
             John Padden, Vice
             President
             Ed Hackney, Vice President
             Lily Yu, First Vice
             President
             Ted Heigel, Vice President
             Ann Houlihan, Secretary


                                       J-1




- --------------------------------------------------------------------------------
SUB-ADVISER             NAME                      PRINCIPAL OCCUPATION
- --------------------------------------------------------------------------------
                                   
Gateway      Walter G. Sall              Chairman and Trustee, Gateway Trust and
             Chairman and Chief          Gateway Variable Insurance Trust;
             Executive Officer           Director, Melmedica Children's
                                         Healthcare, Inc.; Director, Anderson
                                         Bank Company of Cincinnati, Ohio.
             J. Patrick Rogers           President, Gateway Trust and Gateway
             President, Chief            Variable Insurance Trust; Trustee,
             Investment Officer and      Gateway Trust; Portfolio Manager,
             Director                    Gateway Fund and Gateway VIT Fund.
             Geoffrey Keenan             Vice President, Gateway Trust and
             Executive Vice President    Gateway Variable Insurance Trust.
             and Chief Operating
             Officer
             Gary H. Goldschmidt         Vice President and Treasurer, Gateway
             Vice President and Chief    Trust and Gateway Variable Insurance
             Financial Officer           Trust.
             Harry E. Merriken
             Senior Vice President
             Paul R. Stewart
             Senior Vice President
             Donna M. Squeri             Secretary, Gateway Trust and Gateway
             General Counsel and         Variable Insurance Trust.
             Secretary

NWQ          Michael C. Mendez           President and Director (since
             Chief Executive Officer     1999),Managing Director (1992-1999) of
                                         NWQ Investment Management Company, Inc.
             Jon D. Bosse                Managing Director, Portfolio Manager
             Chief Investment Officer    (since 1996), Director of Research
             and Managing Director       (1996-2001) of NWQ Investment
                                         Management Company, Inc.; Chartered
                                         Financial Analyst.
             Edward C. Friedel           Managing Director (since 1992) of NWQ
             Senior Managing Director    Investment Management Company, Inc.;
                                         Chartered Financial Analyst.
             Peter H. D'Arrigo,          Vice President of Nuveen Investments,
             Assistant Treasurer         LLC; Vice President and Treasurer of
                                         Nuveen Investments, Inc.; Vice
                                         President and Treasurer of Nuveen Asset
                                         Management and of Nuveen Investments
                                         Advisers Inc.; Vice President and
                                         Treasurer of Nuveen Rittenhouse Asset
                                         Management, Inc.; Vice President and
                                         Treasurer of funds in Nuveen fund
                                         complex; Charted Financial Analyst.


                                       J-2




- --------------------------------------------------------------------------------
SUB-ADVISER             NAME                      PRINCIPAL OCCUPATION
- --------------------------------------------------------------------------------
                                   
             Larry M. Martin,            Vice President, Assistant Secretary and
             Assistant Secretary         Assistant General Counsel of Nuveen
                                         Investments, LLC; Vice President,
                                         Assistant General Counsel and Assistant
                                         Secretary of Nuveen Investments, Inc.;
                                         Vice President and Assistant Secretary
                                         of Nuveen Asset Management; Vice
                                         President, Assistant Secretary and
                                         Assistant General Counsel of
                                         Rittenhouse Asset Management, Inc.;
                                         Vice President and Assistant Secretary
                                         of Nuveen Investments Advisers Inc.;
                                         Vice President and Assistant Secretary
                                         of funds in Nuveen fund complex.
             Gifford R. Zimmerman,       Managing Director, Assistant Secretary
             Assistant Secretary         and Associate General Counsel of Nuveen
                                         Investments, LLC and Nuveen Asset
                                         Management; Managing Director and
                                         Assistant Secretary of Nuveen
                                         Investments, Inc.; Vice President and
                                         Assistant Secretary of Nuveen
                                         Investments Advisers Inc.; Managing
                                         Director, Associate General Counsel and
                                         Assistant Secretary of Rittenhouse
                                         Asset Management, Inc.; Chief
                                         Administrative Officer of funds in
                                         Nuveen fund complex.

SCRM         Anthony R. Manno, Jr.       Chairman of the Board, Managing
             President and Managing      Director and President Security
             Director                    Capital, Real Estate Mutual Funds
                                         Incorporated. Director, Security
                                         Capital Preferred Growth Incorporated
                                         and Bulgarian American Enterprise Fund.
             Kenneth D. Statz            Managing Director, Security Capital
             Managing Director           Real Estate Mutual Funds Incorporated.
             Kevin Bedell                Senior Vice President, Security Capital
             Senior Vice President       Real Estate Mutual Funds Incorporated.
             David E. Rosenbaum
             Senior Vice President
             Jeffrey C. Nellessen        Vice President, Treasurer and Assistant
             Vice President, Treasurer,  Secretary, Security Capital Real Estate
             and Assistant Secretary     Mutual Funds Incorporated.
             David T. Novick             General Counsel, Senior Vice President
             General Counsel             and Secretary, Security Capital Real
                                         Estate Mutual Funds Incorporated.
             Alexander K. Daggett        Vice President-Client Services,
             Vice President              Security Capital Real Estate Mutual
                                         Funds Incorporated.
             Michael J. Heller           Controller and Assistant Treasurer,
             Controller                  Security Capital Real Estate Mutual
                                         Funds Incorporated.

Spectrum     Bernard M. Sussman          Executive Director, Co-Chief Executive
             Executive Director,         Officer and Chief Investment Officer of
             Co-Chief Executive Officer  Spectrum Asset Management, Inc.;
             and Chief Investment        Chairman of Spectrum Asset Management,
             Officer                     Inc. Investment Committee.


                                       J-3




- --------------------------------------------------------------------------------
SUB-ADVISER             NAME                      PRINCIPAL OCCUPATION
- --------------------------------------------------------------------------------
                                   
             Mark A. Lieb                Executive Director, Co-Chief Executive
             Executive Director,         Officer and Chief Financial Officer for
             Co-Chief Executive Officer  Spectrum Asset Management, Inc.; Member
             and Chief Financial         of Spectrum Asset Management, Inc.
             Officer                     Investment Committee.
             L. Phillip Jacoby, IV       Senior Vice President and Portfolio
             Senior Vice President and   Manager of Spectrum Asset Management,
             Portfolio Manager           Inc.; Member of Spectrum Asset
                                         Management, Inc. Investment Committee.
             Lisa D. Crossley            Vice President and Chief Compliance
             Vice President and Chief    Officer of Spectrum Asset Management,
             Compliance Officer          Inc., Formerly Vice President and
                                         Director of Compliance, Nuveen
                                         Investments, Inc.
             Bernard M. Sussman          Executive Director, Co-Chief Executive
             Executive Director,         Officer and Chief Investment Officer of
             Co-Chief Executive Officer  Spectrum Asset Management, Inc.;
             and Chief Investment        Chairman of Spectrum Asset Management,
             Officer                     Inc. Investment Committee.

Symphony     Jeffrey L. Skelton          Manager/Member, NetNet Ventures, LLC.
             Director; President; Chief
             Executive Officer
             Neil L. Rudolph             Manager/Member, NetNet Ventures, LLC.
             Chief Operating Officer;
             Chief Financial Officer;
             Chief Compliance Officer
             Michael J. Henman           Manager/Member, NetNet Ventures, LLC.
             Secretary; Director of
             Business Development
             Praveen K. Gottipalli       Portfolio Manager and Manager/Member,
             Director of Investments     NetNet Ventures, LLC.
             Gunther M. Stein            Portfolio Manager, Symphony Asset
             Director of Fixed Income    Management LLC; Portfolio Manager,
             Strategies(1)               Nuveen Senior Loan Asset Management
                                         LLC.

Wellington   Kenneth Lee Abrams
             Partner
             Nicholas Charles Adams      Sr. Vice President, Wellington Global
             Partner                     Holdings, Ltd.
             Rand Lawrence Alexander
             Partner
             Deborah Louise Allinson     Vice President, Wellington Trust
             Partner                     Company, NA.
             Steven C. Angeli
             Partner
             James Halsey Averill
             Partner
             John F. Averill             Sr. Vice President, Wellington Global
             Partner                     Holdings, Ltd. and Wellington Hedge
                                         Management, Inc.


                                       J-4




- --------------------------------------------------------------------------------
SUB-ADVISER             NAME                      PRINCIPAL OCCUPATION
- --------------------------------------------------------------------------------
                                   
             Karl E. Bandtel             Sr. Vice President, Wellington Global
             Partner                     Administrator, Ltd., Wellington Global
                                         Holdings, Ltd. and Wellington Hedge
                                         Management, Inc.
             Mark James Beckwith
             Partner
             James A. Bevilacqua         Sr. Vice President, Wellington Hedge
             Partner                     Management, Inc., Wellington Global
                                         Holdings, Ltd. and Wellington Global
                                         Administrator, Ltd.
             Kevin J. Blake              Director, Wellington Global
             Partner                     Administrator, Ltd., Wellington Global
                                         Holdings, Ltd. and Wellington
                                         Management Global Holdings, Ltd.;
                                         Supervisory Board, Wellington
                                         Luxembourg S.C.A.
             William Nicholas Booth
             Partner
             Michael J. Boudens          Sr. Vice President, Wellington Global
             Partner                     Administrator, Ltd. and Wellington
                                         Hedge Management, Inc.
             Paul Braverman              Chairman, Director & Treasurer,
             Partner                     Wellington Global Administrator, Ltd.
                                         and Wellington Global Holdings, Ltd.,
                                         Treasurer, Wellington Hedge Management,
                                         Inc.; Director, Pte. Ltd., Wellington
                                         International Management Company,
                                         Supervisory Board, Wellington
                                         Luxembourg S.C.A.; Chairman, Director &
                                         Treasurer, Wellington Management Global
                                         Holdings, Ltd.; Director & Finance
                                         Officer, Wellington Management
                                         International Ltd.; Vice President and
                                         Treasurer/Cashier, Wellington Trust
                                         Company, NA.
             Robert A. Bruno
             Partner
             Michael T. Carmen
             Partner
             Maryann Evelyn Carroll
             Partner
             William R.H. Clark          Managing Director, Pte Ltd., Wellington
             Partner                     International Management Company.
             John DaCosta
             Partner
             Pamela Dippel               Director & Vice President, Wellington
             Partner                     Trust Company, NA.
             Scott M. Elliott
             Partner
             Robert Lloyd Evans
             Partner
             David R. Fassnacht
             Partner


                                       J-5




- --------------------------------------------------------------------------------
SUB-ADVISER             NAME                      PRINCIPAL OCCUPATION
- --------------------------------------------------------------------------------
                                   
             Lisa de la Fuente Finkel    Sr. Vice President, Wellington Global
             Partner                     Administrator, Ltd. and Wellington
                                         Hedge Management, Inc.
             Mark T. Flaherty            Vice President, Wellington Trust
             Partner                     Company, NA.
             Charles Townsend Freeman
             Partner
             Laurie Allen Gabriel        Sr. Vice President, Wellington Global
             Managing Partner            Administrator, Ltd.; Sr. Vice President
                                         & Director, Wellington Hedge
                                         Management, Inc.; Vice President,
                                         Wellington Trust Company, NA.
             Ann C. Gallo
             Partner
             Nicholas Peter Greville     Sr. Vice President, Wellington Global
             Partner                     Administrator, Ltd.; Director, Pte
                                         Ltd., Wellington International
                                         Management Company; Director,
                                         Wellington Management International
                                         Ltd.
             Paul J. Hamel               Vice President, Wellington Trust
             Partner                     Company, NA.
             William J. Hannigan         Vice President, Wellington Global
             Partner                     Administrator, Ltd.; Sr. Vice
                                         President, Wellington Hedge Management,
                                         Inc.
             Lucius Tuttle Hill, III
             Partner
             James P. Hoffmann
             Partner
             Jean M. Hynes               Sr. Vice President, Wellington Global
             Partner                     Holdings, Ltd.
             Paul David Kaplan
             Partner
             Lorraine A. Keady           Deputy Chairman & Director, Wellington
             Partner                     Global Administrator, Ltd. and
                                         Wellington Global Holdings, Ltd., Sr.
                                         Vice President, Wellington Hedge
                                         Management, Inc.; Supervisory Board,
                                         Wellington Luxembourg S.C.A.; Vice
                                         President and Trust Officer, Wellington
                                         Trust Company, NA; Director, Wellington
                                         Management International Ltd.;
                                         Director, Pte Ltd., Wellington
                                         International Management Company.
             John Charles Keogh          Vice President, Wellington Trust
             Partner                     Company, NA.
             George Cabot Lodge, Jr.     Sr. Vice President, Wellington Global
             Partner                     Administrator, Ltd. and Wellington
                                         Hedge Management, Inc.; Vice President,
                                         Wellington Trust Company, NA.
             Nancy Therese Lukitsh       Sr. Vice President, Wellington Global
             Partner                     Administrator, Ltd. and Wellington
                                         Hedge Management, Inc.; Vice President
                                         & Director, Wellington Trust Company,
                                         NA.


                                       J-6




- --------------------------------------------------------------------------------
SUB-ADVISER             NAME                      PRINCIPAL OCCUPATION
- --------------------------------------------------------------------------------
                                   
             Mark Thomas Lynch           Sr. Vice President, Wellington Global
             Partner                     Holdings, Ltd.
             Mark D. Mandel              Sr. Vice President, Wellington Global
             Partner                     Holdings, Ltd.
             Christine Smith Manfredi    Sr. Vice President, Wellington Global
             Partner                     Administrator, Ltd., Wellington Global
                                         Holdings, Ltd., and Wellington Hedge
                                         Management, Inc.; Vice President,
                                         Wellington Trust Company, NA.
             Earl Edward McEvoy
             Partner
             Duncan Mathieu McFarland    Chairman & Director, Wellington Hedge
             Managing Partner            Management, Inc.; Director, Pte Ltd.,
                                         Wellington International Management
                                         Company; Director, Wellington
                                         Management International Ltd.; Vice
                                         President & Director, Wellington Trust
                                         Company, NA.
             Paul Mulford Mecray III
             Partner
             Matthew Edward Megargel
             Partner
             James Nelson Mordy
             Partner
             Diane Carol Nordin Partner  Sr. Vice President, Wellington Global
                                         Administrator, Ltd. and Wellington
                                         Hedge Management, Inc.; Vice President
                                         & Director, Wellington Trust Company,
                                         NA; Director, Wellington Management
                                         International Ltd.; Director, Pte Ltd.,
                                         Wellington International Management
                                         Company.
             Stephen T. O'Brien
             Partner
             Andrew S. Offit
             Partner
             Edward Paul Owens           Sr. Vice President, Wellington Global
             Partner                     Holdings, Ltd.
             Saul Joseph Pannell         Sr. Vice President, Wellington Global
             Partner                     Holdings, Ltd.
             Thomas Louis Pappas
             Partner
             Jonathan Martin Payson      President, Chairman of the Board and
             Partner                     Director, Wellington Trust Company, NA.
             Philip H. Perelmuter
             Partner
             Robert Douglas Rands        Sr. Vice President, Wellington Global
             Partner                     Holdings, Ltd.
             James Albert Rullo
             Partner


                                       J-7




- --------------------------------------------------------------------------------
SUB-ADVISER             NAME                      PRINCIPAL OCCUPATION
- --------------------------------------------------------------------------------
                                   
             John Robert Ryan            Director, Wellington Hedge Management,
             Managing Partner            Inc.
             Joseph Harold Schwartz
             Partner
             James H. Shakin
             Partner
             Theodore Shasta             Sr. Vice President, Wellington Global
             Partner                     Holdings, Ltd.
             Andrew J. Shilling
             Partner
             Binkley Calhoun Shorts
             Partner
             Scott E. Simpson            Sr. Vice President, Wellington Global
             Partner                     Holdings, Ltd.
             Trond Skramstad
             Partner
             Stephen Albert Soderberg
             Partner
             Eric Stromquist             Sr. Vice President, Wellington Global
             Partner                     Holdings, Ltd.
             Brendan James Swords        President, Wellington Global
             Partner                     Administrator, Ltd., Wellington Global
                                         Holdings, Ltd., Wellington Hedge
                                         Management, Inc. and Wellington
                                         Management Global Holdings, Ltd.
             Harriett Tee Taggart
             Partner
             Frank L. Teixeira
             Partner
             Perry Marques Traquina      Vice President & Director, Wellington
             Partner                     Trust Company, NA; Director and
                                         Chairman of the Board, Wellington
                                         Management International Ltd.; Director
                                         and Chairman of the Board, Pte Ltd.,
                                         Wellington International Management
                                         Company.
             Nilesh P. Undavia           Sr. Vice President, Wellington Global
             Partner                     Holdings, Ltd.
             Clare Villari
             Partner
             Kim Williams
             Partner
             Itsuki Yamashita            Sr. Managing Director, Pte Ltd.,
             Partner                     Wellington International Management
                                         Company.


                                       J-8


                           [NUVEEN INVESTMENTS LOGO]

Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606-1286

(800) 257-8787

www.nuveen.com                                                           JDD0705

                            [NUVEEN INVESTMENTS LOGO]

Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com

                         3 EASY WAYS TO VOTE YOUR PROXY

1.       Automated Touch Tone Voting: Call toll-free 1-800-690-6903 and follow
         the recorded instructions.

2.       On the Internet at www.proxyweb.com, and follow the simple
         instructions.

3.       Sign, Date and Return this proxy card using the enclosed postage-paid
         envelope, to Proxy Tabulator, PO Box 9122, Hingham, MA 02043.

                  **** CONTROL NUMBER: 999 999 999 999 98 ****

                             [FUND NAME PRINTS HERE]

                THIS PROXY IS SOLICITED BY THE BOARD OF THE FUND
              FOR A SPECIAL MEETING OF SHAREHOLDERS, JULY 26, 2005

A Special Meeting of shareholders will be held in the Assembly Room of The
Northern Trust Company, 50 South LaSalle Street, Chicago, Illinois, on Tuesday,
July 26, 2005, at 10:30 a.m., Chicago time. At this meeting, you will be asked
to vote on the proposals described in the proxy statement attached. The
undersigned hereby appoints Timothy R. Schwertfeger, Jessica R. Droeger and
Gifford R. Zimmerman, and each of them, with full power of substitution, proxies
for the undersigned, to represent and vote the shares of the undersigned at the
Special Meeting of shareholders to be held on July 26, 2005, or any adjournment
or adjournments thereof.

WHETHER OR NOT YOU PLAN TO JOIN US AT THE MEETING, PLEASE COMPLETE, DATE AND
SIGN YOUR PROXY CARD AND RETURN IT IN THE ENCLOSED ENVELOPE SO THAT YOUR VOTE
WILL BE COUNTED. AS AN ALTERNATIVE, PLEASE CONSIDER VOTING BY TELEPHONE
(800)690-6903 OR OVER THE INTERNET (www.proxyweb.com).

                                     Date:
                                           ------------------------------------

                                     SIGN HERE EXACTLY AS NAME(S) APPEAR(S) ON
                                     LEFT.  (Please sign in Box)


                                     ------------------------------------------


                                     ------------------------------------------

                                     NOTE: PLEASE SIGN YOUR NAME EXACTLY AS IT
                                     APPEARS ON THIS PROXY. IF SHARES ARE HELD
                                     JOINTLY, EACH HOLDER MUST SIGN THE PROXY,
                                     IF YOU ARE SIGNING ON BEHALF OF AN ESTATE,
                                     TRUST OR CORPORATION, PLEASE STATE YOUR
                                     TITLE OR CAPACITY.

PLEASE FILL IN BOX(es) AS SHOWN USING BLACK OR BLUE INK OR NUMBER 2 PENCIL.  [X]

PLEASE DO NOT USE FINE POINT PENS.

In their discretion, the proxies are authorized to vote upon such other business
as may properly come before the Special Meeting.

PROPERLY EXECUTED PROXIES WILL BE VOTED AS SPECIFIED. IF NO SPECIFICATION IS
MADE, SUCH SHARES WILL BE VOTED "FOR" THE PROPOSALS SET FORTH IN THIS PROXY.

                                                                             
1.   For shareholders of all Funds:
                                                                     FOR    AGAINST   ABSTAIN
           Approval of the new investment management agreement.      [ ]      [ ]       [ ]


2a.  For shareholders of Nuveen Preferred and Convertible Income Fund and Nuveen Preferred and
     Convertible Income Fund 2 only:

           Approval of the new sub-advisory agreement between        FOR    AGAINST   ABSTAIN
           Nuveen Asset Management and Froley, Revy Investment Co.   [ ]      [ ]       [ ]


2b.  For shareholders of Nuveen Equity Premium Income Fund and Nuveen Equity Premium Opportunity
     Fund only:

           Approval of the new sub-advisory agreement between        FOR    AGAINST   ABSTAIN
           Nuveen Asset Management and Gateway Investment Advisers,  [ ]      [ ]       [ ]
           L.P.

2c.  For shareholders of Nuveen Diversified Dividend and Income Fund and Nuveen Tax-Advantaged
     Total Return Strategy Fund only:

           Approval of the new sub-advisory agreement between        FOR   AGAINST   ABSTAIN
           Nuveen Asset Management and NWQ Investment Management     [ ]     [ ]       [ ]
           Company, LLC.

2d.  For shareholders of Nuveen Diversified Dividend and Income Fund and Nuveen Real Estate Income
     Fund only:

           Approval of the new sub-advisory agreement between        FOR   AGAINST   ABSTAIN
           Nuveen Asset Management and Security Capital Research &   [ ]     [ ]       [ ]
           Management Incorporated.


2e.  For shareholders of Nuveen Preferred and Convertible Income Fund, Nuveen
     Preferred and Convertible Income Fund 2, Nuveen Quality Preferred Income
     Fund, Nuveen Quality Preferred Income Fund 2, Nuveen Quality Preferred
     Income Fund 3 and Nuveen Tax-Advantaged Floating Rate Fund only:

           Approval of the new sub-advisory agreement between        FOR   AGAINST   ABSTAIN
           Nuveen Asset Management and Spectrum Asset                [ ]     [ ]       [ ]
           Management, Inc.

2f.  For shareholders of Nuveen Diversified Dividend and Income Fund, Nuveen
     Floating Rate Income Fund, Nuveen Floating Rate Income Opportunity Fund,
     Nuveen Preferred and Convertible Income Fund 1, Nuveen Preferred and
     Convertible Income Fund 2, Nuveen Senior Income Fund and Nuveen
     Tax-Advantaged Total Return Strategy Fund only:

           Approval of the new sub-advisory agreement between        FOR   AGAINST   ABSTAIN
           Nuveen Asset Management and Symphony Asset                [ ]     [ ]       [ ]
           Management LLC.


2g.  For shareholders of Nuveen Diversified Dividend and Income Fund only:

           Approval of the new sub-advisory agreement between        FOR   AGAINST   ABSTAIN
           Nuveen Asset Management and Wellington Management         [ ]     [ ]       [ ]
           Company, LLC.








                           PLEASE SIGN ON REVERSE SIDE