-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CWusTUnNTQedJBsBXFrAtVcln1bNJCEShQzrq+nyOYrM60SlkD/IvhzRUCoT0tW/ H1UkzIisXcCQTk8DqA69cQ== 0000950137-07-013841.txt : 20070906 0000950137-07-013841.hdr.sgml : 20070906 20070906131537 ACCESSION NUMBER: 0000950137-07-013841 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070630 FILED AS OF DATE: 20070906 DATE AS OF CHANGE: 20070906 EFFECTIVENESS DATE: 20070906 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Nuveen Equity Premium Advantage Fund CENTRAL INDEX KEY: 0001320492 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21731 FILM NUMBER: 071102178 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 312-917-8146 MAIL ADDRESS: STREET 1: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 N-CSRS 1 c16825cnvcsrs.txt N-CSRS - SEMI-ANNUAL REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-21731 ----------------------- Nuveen Equity Premium Advantage Fund - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Kevin J. McCarthy Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 --------------------- Date of fiscal year end: December 31 ------------------- Date of reporting period: June 30, 2007 --------------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. SS. 3507. ITEM 1. REPORTS TO SHAREHOLDERS Semi-Annual Report JUNE 30, 2007 Nuveen Investments CLOSED-END FUNDS NUVEEN EQUITY PREMIUM INCOME FUND JPZ NUVEEN EQUITY PREMIUM OPPORTUNITY FUND JSN NUVEEN EQUITY PREMIUM ADVANTAGE FUND JLA NUVEEN EQUITY PREMIUM AND GROWTH FUND JPG Attractive Monthly Distributions and a Measure of Downside Protection from an Integrated Index Option and Equity Strategy NUVEEN INVESTMENTS LOGO Life is complex. Nuveen makes things e-simple. ----------------------------------- It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready--no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report, and save it on your computer if you wish. Free e-Reports right to your e-mail! www.investordelivery.com OR www.nuveen.com/accountaccess If you received your Nuveen Fund If you received your Nuveen Fund dividends and statements from your dividends and statements directly from financial advisor or brokerage Nuveen. account.
NUVEEN INVESTMENTS LOGO Chairman's LETTER TO SHAREHOLDERS (TIMOTHY SCHWERTFEGER PHOTO) Timothy R. Schwertfeger Chairman of the Board
Dear Shareholder: Once again, I am pleased to report that over the six-month period covered by this report your Fund continued to provide you with attractive income. For more details about the management strategy and performance of your Fund, please read the Portfolio Managers' Comments, the Dividend and Share Price Information, and the Performance Overview sections of this report. I also wanted to take this opportunity to report some important news about Nuveen Investments. We have accepted a buyout offer from a private equity investment firm. While this may affect the corporate structure of Nuveen Investments, it will have no impact on the investment objectives of the Funds, portfolio management strategies or their dividend policies. We will provide you with additional information about this transaction as more details become available. With the recent volatility in the stock market, many have begun to wonder which way the market is headed, and whether they need to adjust their holdings of investments. No one knows what the future will bring, which is why we think a well-balanced portfolio that is structured and carefully monitored with the help of an investment professional is an important component in achieving your long-term financial goals. A well-diversified portfolio may actually help to reduce your overall investment risk, and we believe that investments like your Nuveen Investments Fund can be important building blocks in a portfolio crafted to perform well through a variety of market conditions. We are grateful that you have chosen us as a partner as you pursue your financial goals and we look forward to continuing to earn your trust in the months and years ahead. At Nuveen Investments, our mission continues to be to assist you and your financial advisor by offering investment services and products that can help you to secure your financial objectives. Sincerely, (TIMOTHY SCHWERTFEGER SIG) Timothy R. Schwertfeger Chairman of the Board August 15, 2007 Portfolio Managers' COMMENTS NUVEEN INVESTMENTS CLOSED-END FUNDS JPZ, JSN, JLA, JPG These Funds feature portfolio management by Gateway Investment Advisers, L.P. (Gateway). J Patrick Rogers and Kenneth H. Toft serve as co-portfolio managers for JSN and JLA; Patrick and Michael T. Buckius are co-portfolio managers for JPZ and JPG. Patrick joined Gateway in 1989. He has been President and a Director of Gateway since 1995 and is the firm's Chief Executive Officer. Ken joined Gateway in 1992 and has been a Vice President and Portfolio Manager since 1997. Mike joined Gateway in 1999 as a Vice President and Portfolio Manager. Here the portfolio managers talk about their management strategy and the performance of the Funds for the six-months ended June 30, 2007. WHAT WAS YOUR OVERALL MANAGEMENT STRATEGY FOR THE SIX-MONTHS ENDED JUNE 30, 2007? The core investment strategy employed in JPZ, JSN, JLA and JPG remained the same and consisted of investing in a broadly diversified portfolio of equity securities that seeks to substantially track the price movement of a stock market index or a custom blend of stock market indices. The purpose of the equity portfolio is to support the index option strategy. For JPZ and JPG, the equity portfolio seeks to track the price movements of the S&P 500 Index. Over the course of the first half of 2007, JPZ actively sold listed S&P 500 index call options against the stock portfolio. These call options generated a meaningful amount of regular cash flow, which served to both reduce the risk of owning the stock portfolio and also generated much of the return of the strategy. The third component of the strategy is the purchase of listed S&P 500 index put options to help protect the value of the stock portfolio in the event of a significant market decline over a short period of time. JPG differs from JPZ in that the index option hedging activity is applied to 80% of the value of the equity portfolio, leaving 20% unhedged. For JSN, the equity portfolio is invested to replicate the price performance of a custom benchmark consisting of 75% S&P 500 Index and 25% NASDAQ-100 Index. JSN employs an option strategy similar to JPZ with roughly 75% of the call and put options being S&P 500 index options and the remaining 25% being NASDAQ-100 options. For JLA, the overall equity and option strategy is similar to JSN. The differentiating feature of JLA is its underlying equity portfolio, which tracks a custom benchmark of 50% S&P 500 and 50% NASDAQ-100, with a matching investment portfolio of S&P 500 and NASDAQ-100 index call and put options. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The views expressed herein represent those of the portfolio managers as of the date of this report and are subject to change at any time, based on market conditions and other factors. The Funds disclaim any obligation to advise shareholders of such changes. 4 HOW DID THE FUNDS PERFORM OVER THE SIX-MONTH PERIOD? The performance of JPZ, JSN, JLA and JPG, as well as the performance of comparative indices or benchmarks, is presented in the accompanying table. Cumulative Total Returns on Net Asset Value For the six-month period ended 6-30-07 JPZ 5.04% S&P 500 6.96% JSN 6.37% Comparative benchmark(1) 7.74% JLA 6.09% Comparative benchmark(2) 8.52% JPG 6.16% S&P 500 6.96%
- -------------------------------------------------------------------------------- Past performance does not guarantee future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that a shareholder may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, please see the individual Performance Overview page for your Fund in this report. - -------------------------------------------------------------------------------- For the six-months ended June 30, 2007, all four Funds underperformed their respective benchmarks. The most significant factor that impacted the performance of the Funds in the first half of 2007 was the increase in equity market volatility. Since the turbulence of global markets in late February and early March in the aftermath of a plunge in the Shanghai stock index, market participants have seemingly reassessed the price of risk across equity and credit markets. The struggles facing the mortgage-backed securities market in the wake of the difficulties in the underlying mortgage markets have further reinforced this new view of risk. This reassessment of risk is evident in the broad equity markets. The CBOE Volatility Index (the "VIX"), a popular gauge of investor sentiment, appears to have shifted to a higher range despite a backdrop of a generally benign equity market. For perspective, compared to its 2006 low of 9.90 on November 21, 2006, the VIX index ended the second quarter of 2007 at 16.23, an increase of over 60%. Looking forward, there seems to be an ongoing reassessment by global investors as to whether financial risk is properly priced in the market or whether this risk has been priced too cheaply over the past several years. One of the lessons of the market performance of the first half of the year appears to be that global financial markets are more interconnected than ever and that isolated incidents in obscure markets can have wide-ranging effects around the world. One result of this reassessment in the U.S. has been a higher level of broad equity market volatility as seen in the VIX. This elevated volatility translates to higher prices (premium) for option contracts and, as we are consistent net sellers of option premium, the result is more generous cash flows from our option writing activity. As seen in the first half of 2007, this elevated cash flow can cushion the portfolio in the event of market turbulence and help generate an attractive return. - -------------------------------------------------------------------------------- 1 JSN comparative benchmark performance is a blended return consisting of: 1) 75% of the return of the S&P 500 Index, and 2) 25% of the NASDAQ-100 Index, which includes 100 of the largest domestic and international non-financial companies listed on The NASDAQ Stock Market based on market capitalization. The NASDAQ-100 Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. 2 JLA comparative benchmark performance is a blended return consisting of: 1) 50% of the return of the S&P 500 Index, and 2) 50% of the NASDAQ-100 Index. - -------------------------------------------------------------------------------- 5 Distribution and Share Price INFORMATION We are providing you with information regarding your Fund's distributions. This information is as of June 30, 2007, and likely will vary over time based on the Fund's investment activities and portfolio investment value changes. On March 1, 2007, Nuveen Investments announced that these Funds would be moving from a monthly to a quarterly distribution schedule. The last monthly distributions were paid on April 2, 2007, and first quarterly distributions were paid on July 2, 2007. Each Fund has a managed distribution policy. The goal of a managed distribution program is to provide shareholders relatively consistent and predictable cash flow by systematically converting its expected long-term return potential into regular distributions. As a result, regular distributions throughout the year will likely include a portion of expected long-term gains (both realized and unrealized), along with net investment income. Important points to understand about the managed distribution program are: - - Each Fund seeks to establish a relatively stable distribution rate that roughly corresponds to the projected total return from its investment strategy over an extended period of time. However, you should not draw any conclusions about the Fund's past or future investment performance from its current distribution rate. - - Actual returns will differ from projected long-term returns (and therefore the Fund's distribution rate), at least over shorter time periods. Over a specific timeframe, the difference between actual returns and total distributions will be reflected in an increasing (returns exceed distributions) or a decreasing (distributions exceed returns) Fund net asset value. - - Each distribution is expected to be paid from some or all of the following sources: - net investment income (regular interest and dividends), - realized capital gains, and - unrealized gains, or, in certain cases, a return of principal (non-taxable distributions) - - A non-taxable distribution is a payment of a portion of a Fund's capital. When a Fund's returns exceed distributions, it may represent portfolio gains generated, but not realized as a taxable capital gain. In periods when a Fund's return falls short of distributions, it will represent a portion of your original principal unless the shortfall is offset during other time periods over the life of your investment (previous or subsequent) when the Fund's total return exceeds distributions. - - Because distribution source estimates are updated during the year, based on a Fund's performance and forecast for its current fiscal year (which is the calendar year for each Fund), these estimates may differ from both the tax information reported to you in your 6 Fund's IRS Form 1099 statement provided at year end, as well as the ultimate economic sources of distributions over the life of your investment. The following table provides estimated information regarding each Fund's distributions and total return performance for the six months ended June 30, 2007. The distribution information is presented on a tax basis rather than on a generally accepted accounting principles (GAAP) basis. This information is intended to help you better understand whether the Fund's returns for the specified time period was sufficient to meet each Fund's distributions. Information regarding such distributions in the future will likely vary based on each Fund's investment activities and portfolio investment value changes at that time.
- --------------------------------------------------------------------------------------------------------------- As of 6/30/07 JPZ JSN JLA JPG - --------------------------------------------------------------------------------------------------------------- Inception date 10/26/04 1/26/05 5/25/05 11/22/05 Six months ended 6/30/07: Per share distribution: From net investment income $0.23 $0.18 $0.12 $0.29 From realized capital gains -- -- -- -- From return of capital 0.62 0.71 0.79 0.52 -------- ------- ------- -------- Total per share distribution $0.85 $0.89 $0.91 $0.81 ======== ======= ======= ======== Distribution rate on NAV 4.61% 4.78% 4.91% 4.05% Annualized one-year total return on NAV 11.39% 12.61% 11.83% 14.17% Annualized since inception total return on NAV 8.19% 8.42% 8.10% 11.11% - ---------------------------------------------------------------------------------------------------------------
At the end of the reporting period, the Funds' share prices were trading relative to their NAVs as shown in the accompanying table:
- ------------------------------------------------------------------------------------------------------- 6/30/07 Average 6-Month Period Discount/Premium Discount/Premium - ------------------------------------------------------------------------------------------------------- JPZ -2.09% 0.40% JSN -2.15% 0.46% JLA -0.16% 2.57% JPG -4.40% -1.47% - -------------------------------------------------------------------------------------------------------
7 JPZ Nuveen Equity PERFORMANCE Premium Income OVERVIEW Fund as of 6-30-07
PORTFOLIO ALLOCATION (AS A % OF TOTAL INVESTMENTS) (PIE CHART) Common Stocks 94.9 Put Options 0.4 Short-Term Investments 4.7
2006 - 2007 DISTRIBUTIONS PER SHARE(2) (BAR CHART) Jul 0.142 Aug 0.142 Sep 0.142 Oct 0.142 Nov 0.142 Dec 0.142 Jan 0.142 Feb 0.142 Mar 0.142 Jun 0.426
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE (LINE GRAPH)
7/01/06 17.45 - ------- ----- 17.46 17.48 17.43 17.47 17.49 17.3 17.25 17.15 17.3 17.17 17.4 17.32 17.21 17.38 17.63 17.82 17.87 18.15 18.22 18.23 18.39 18.35 18.2 18.1 18.29 18.37 18.4 18.35 18.25 18.42 18.45 18.48 18.6 18.41 18.42 18.53 18.54 18.72 18.64 18.68 18.68 18.77 18.85 18.96 18.77 18.71 18.85 18.89 19 18.87 18.64 18.62 18.53 18.6 18.58 18.57 18.57 18.69 18.78 18.86 18.84 18.79 18.79 18.92 19.03 19.19 19.03 19.16 19.17 19.19 18.94 18.94 18.73 18.87 18.71 18.74 18.74 18.84 18.86 18.85 18.85 18.93 18.86 18.8 18.71 18.77 18.62 18.63 18.68 18.92 18.88 18.81 18.86 18.56 18.45 18.41 18.24 17.99 18.03 17.92 18.03 18.13 18.01 18.1 18.36 18.63 18.76 18.79 18.83 18.87 18.9 19.04 19.22 19.26 19.24 19.03 19.1 19.06 19.09 19.22 19.06 19.02 19.05 19.11 19.11 19.22 19.22 19.3 19.22 19.04 19.21 19.23 19 18.99 19.17 19 19.05 18.9 18.97 19 18.97 19.1 19.02 19.05 19.15 19.23 19.33 19.28 19.29 19.36 19.41 19.29 19.31 19.3 19.42 19.01 18.9 18.95 18.87 18.74 18.71 18.66 18.82 18.76 18.73 18.84 18.74 18.65 18.41 18.44 18.65 18.88 18.79 18.93 18.41 18.2 18.3 18.35 18.34 18.38 18.55 18.58 18.58 18.55 18.57 18.53 18.57 18.59 18.59 18.54 18.716 18.75 18.77 18.83 18.83 18.74 18.8 18.95 18.75 18.72 18.69 18.62 18.61 18.62 18.59 18.67 18.75 18.75 18.72 18.75 18.75 18.75 18.71 18.7 18.63 18.65 18.7 18.7 18.66 18.67 18.73 18.78 18.85 18.7 18.71 18.8 18.7 18.74 18.73 18.78 18.83 18.91 19 18.98 18.84 18.66 18.82 18.96 18.91 18.41 18.37 18.29 18.28 18.25 18.24 18.19 18.2 18.1 18.05 18.1 18.2 18.27 6/30/07 18.27
FUND SNAPSHOT - ------------------------------------------------------------------------------------- Share Price $18.27 - ------------------------------------------------------------------------------------- Net Asset Value $18.66 - ------------------------------------------------------------------------------------- Premium/(Discount) to NAV -2.09% - ------------------------------------------------------------------------------------- Current Distribution Rate(1) 9.33% - ------------------------------------------------------------------------------------- Net Assets ($000) $721,740 - -------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 10/26/04)
- ------------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - ------------------------------------------------------------------------------------- 6-Month (cumulative) -0.48% 5.04% - ------------------------------------------------------------------------------------- 1-Year 15.75% 11.39% - ------------------------------------------------------------------------------------- Since Inception 5.57% 8.19% - -------------------------------------------------------------------------------------
INDUSTRIES (as a % of total investments) - ------------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels 7.5% - ------------------------------------------------------------------------------------- Pharmaceuticals 7.5% - ------------------------------------------------------------------------------------- Commercial Banks 7.0% - ------------------------------------------------------------------------------------- Diversified Financial Services 4.4% - ------------------------------------------------------------------------------------- Diversified Telecommunication Services 4.3% - ------------------------------------------------------------------------------------- Insurance 4.1% - ------------------------------------------------------------------------------------- Industrial Conglomerates 3.8% - ------------------------------------------------------------------------------------- Computers & Peripherals 3.3% - ------------------------------------------------------------------------------------- Software 3.2% - ------------------------------------------------------------------------------------- Capital Markets 3.0% - ------------------------------------------------------------------------------------- Aerospace & Defense 2.8% - ------------------------------------------------------------------------------------- Chemicals 2.6% - ------------------------------------------------------------------------------------- Semiconductors & Equipment 2.6% - ------------------------------------------------------------------------------------- Energy Equipment & Services 2.6% - ------------------------------------------------------------------------------------- Tobacco 2.5% - ------------------------------------------------------------------------------------- Communications Equipment 2.3% - ------------------------------------------------------------------------------------- Household Products 2.3% - ------------------------------------------------------------------------------------- Machinery 2.2% - ------------------------------------------------------------------------------------- Commercial Services & Supplies 2.1% - ------------------------------------------------------------------------------------- Put Options 0.4% - ------------------------------------------------------------------------------------- Short-Term Investments 4.7% - ------------------------------------------------------------------------------------- Other 24.8% - -------------------------------------------------------------------------------------
1 Current Distribution Rate is based on the Fund's current annualized quarterly distribution divided by the Fund's current market price. The Fund's quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a return of capital for tax purposes. 2 Effective March 1, 2007, the Fund changed from a monthly distribution to a quarterly distribution schedule. The Fund's last monthly distribution was declared March 1, 2007, and paid on April 2, 2007. The Fund's first quarterly distribution was declared June 1, 2007, and paid on July 2, 2007. 8 JSN Nuveen Equity PERFORMANCE Premium Opportunity OVERVIEW Fund as of 6-30-07
PORTFOLIO ALLOCATION (AS A % OF TOTAL INVESTMENTS) (PIE CHART) Common Stocks 96.5 Short-Term Investments 3.1 Put Options 0.4
2006-2007 DISTRIBUTIONS PER SHARE(2) (BAR CHART) Jul 0.148 Aug 0.148 Sep 0.148 Oct 0.148 Nov 0.148 Dec 0.148 Jan 0.148 Feb 0.148 Mar 0.148 Jun 0.444
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE (LINE GRAPH)
7/01/06 18.2 - ------- ---- 18.11 18.27 18.16 18.18 18.23 18.02 17.9601 17.92 17.9 17.79 17.88 17.99 17.77 17.8 17.84 17.95 18.01 18.03 18.12 18.1 18.24 18.24 18.28 18.3 18.36 18.44 18.5 18.45 18.44 18.36 18.35 18.48 18.55 18.48 18.49 18.53 18.61 18.65 18.6799 18.68 18.85 18.82 18.68 18.65 18.64 18.69 18.82 18.8 18.86 18.75 18.65 18.68 18.51 18.68 18.66 18.67 18.76 18.69 18.85 18.85 18.79 18.95 18.95 19.06 19.1 19.19 19.13 19.21 19.19 19.16 18.88 18.9 18.65 18.51 18.5 18.45 18.41 18.3 18.32 18.37 18.48 18.56 18.6 18.69 18.65 18.45 18.32 18.332 18.4 18.59 18.6 18.58 18.62 18.33 18.27 18.23 18.03 18.15 18.08 17.97 18.02 18.09 17.97 18.06 18.2 18.4 18.6 18.66 18.76 18.81 18.77 18.74 18.77 18.82 18.59 18.61 18.59 18.67 18.63 18.59 18.59 18.65 18.68 18.74 18.58 18.62 18.62 18.75 18.79 18.75 18.86 18.94 18.7 18.65 18.72 18.71 18.74 18.73 18.63 18.5 18.53 18.56 18.44 18.62 18.7 18.82 18.87 18.9 18.89 18.93 18.9 18.87 18.94 18.91 18.94 18.73 18.64 18.63 18.58 18.51 18.47 18.4 18.63 18.76 18.56 18.76 18.6399 18.52 18.44 18.57 18.67 18.72 18.66 18.67 18.34 18.22 18.2 18.17 18.23 18.28 18.3 18.35 18.42 18.38 18.42 18.37 18.38 18.4 18.4 18.362 18.44 18.49 18.53 18.58 18.6 18.53 18.56 18.63 18.53 18.51 18.51 18.45 18.46 18.42 18.43 18.54 18.57 18.62 18.59 18.64 18.65 18.59 18.66 18.61 18.58 18.6 18.67 18.69 18.63 18.6 18.66 18.68 18.72 18.59 18.64 18.71 18.59 18.67 18.71 18.82 18.87 18.97 19.08 19 18.9 18.71 18.9 18.95 18.89 18.37 18.34 18.27 18.24 18.21 18.21 18.2 18.18 18.11 18.09 18.16 18.19 18.22 6/30/07 18.22
FUND SNAPSHOT - --------------------------------------------------------------------------------------- Share Price $18.22 - --------------------------------------------------------------------------------------- Net Asset Value $18.62 - --------------------------------------------------------------------------------------- Premium/(Discount) to NAV -2.15% - --------------------------------------------------------------------------------------- Current Distribution Rate(1) 9.75% - --------------------------------------------------------------------------------------- Net Assets ($000) $1,238,765 - ---------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/05)
- ------------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - ------------------------------------------------------------------------------------- 6-Month (cumulative) 2.68% 6.37% - ------------------------------------------------------------------------------------- 1-Year 11.47% 12.61% - ------------------------------------------------------------------------------------- Since Inception 5.51% 8.42% - -------------------------------------------------------------------------------------
INDUSTRIES (as a % of total investments) - ------------------------------------------------------------------------------------- Pharmaceuticals 7.1% - ------------------------------------------------------------------------------------- Software 6.2% - ------------------------------------------------------------------------------------- Communications Equipment 5.6% - ------------------------------------------------------------------------------------- Computers & Peripherals 5.5% - ------------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels 5.2% - ------------------------------------------------------------------------------------- Semiconductors & Equipment 4.5% - ------------------------------------------------------------------------------------- Commercial Banks 4.1% - ------------------------------------------------------------------------------------- Diversified Financial Services 3.6% - ------------------------------------------------------------------------------------- Diversified Telecommunication Services 3.5% - ------------------------------------------------------------------------------------- Capital Markets 3.3% - ------------------------------------------------------------------------------------- Internet Software & Services 3.0% - ------------------------------------------------------------------------------------- Industrial Conglomerates 2.9% - ------------------------------------------------------------------------------------- Aerospace & Defense 2.4% - ------------------------------------------------------------------------------------- Media 2.4% - ------------------------------------------------------------------------------------- Specialty Retail 2.3% - ------------------------------------------------------------------------------------- Energy Equipment & Services 2.2% - ------------------------------------------------------------------------------------- Commercial Services & Supplies 2.1% - ------------------------------------------------------------------------------------- Insurance 2.0% - ------------------------------------------------------------------------------------- Biotechnology 1.9% - ------------------------------------------------------------------------------------- Tobacco 1.7% - ------------------------------------------------------------------------------------- Put Options 0.4% - ------------------------------------------------------------------------------------- Short-Term Investments 3.1% - ------------------------------------------------------------------------------------- Other 25.0% - -------------------------------------------------------------------------------------
1 Current Distribution Rate is based on the Fund's current annualized quarterly distribution divided by the Fund's current market price. The Fund's quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a return of capital for tax purposes. 2 Effective March 1, 2007, the Fund changed from a monthly distribution to a quarterly distribution schedule. The Fund's last monthly distribution was declared March 1, 2007, and paid on April 2, 2007. The Fund's first quarterly distribution was declared June 1, 2007, and paid on July 2, 2007. 9 JLA Nuveen Equity PERFORMANCE Premium Advantage OVERVIEW Fund as of 6-30-07
PORTFOLIO ALLOCATION (AS A % OF TOTAL INVESTMENTS) (PIE CHART) Common Stocks 95.9 Short-Term Investments 3.8 Put Options 0.3
2006-2007 DISTRIBUTIONS PER SHARE(2) (BAR CHART) Jul 0.151 Aug 0.151 Sep 0.151 Oct 0.151 Nov 0.151 Dec 0.151 Jan 0.151 Feb 0.151 Mar 0.151 Jun 0.453
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE (LINE GRAPH)
7/03/06 18.22 - ------- ----- 18.24 18.26 18.23 18.24 18.24 18.04 17.95 17.98 17.96 17.87 18.07 17.89 17.95 18.1 18.29 18.33 18.32 18.51 18.39 18.43 18.43 18.61 18.54 18.48 18.59 18.79 18.71 18.57 18.6 18.79 18.93 18.9 18.95 19.02 18.94 18.95 18.95 18.89 18.9 19.08 19.03 19.2 19.21 19.34 19.09 18.91 19.13 19.03 19.16 19.17 18.95 18.99 19.08 19.16 19.1 19.13 19.15 19.14 19.17 19.18 19.25 19.38 19.38 19.37 19.37 19.39 19.35 19.41 19.51 19.56 19.25 19.24 19.05 19.01 18.95 19.1 19.25 19.2 19.11 19.3 19.32 19.27 19.3 19.18 19.0617 19.06 19.11 19.15 19.12 19.17 19.1 19.11 19.27 18.99 18.98 18.87 18.53 18.15 18.2 18.28 18.4 18.64 18.47 18.25 18.34 18.75 18.87 19.05 19.25 19.3 19.05 19.14 19.26 19.35 19.07 18.93 19.07 19.15 19.2 19.29 19.16 19.17 19.28 19.31 19.12 19.2 19.2 19.27 19.23 19.42 19.38 19.54 19.35 19.41 19.5199 19.33 19.16 19.25 19.23 19.18 19.18 19.15 19.07 19.1 19.17 19.25 19.35 19.36 19.29 19.4 19.41 19.46 19.39 19.46 19.5 19.21 19.13 19.22 19.17 19.1 19.08 19.1 19.25 19.2 19.01 19.2 19.13 19 18.6 18.87 18.93 19.05 19.05 19.08 18.61 18.47 18.55 18.46 18.51 18.46 18.6099 18.52 18.61 18.59 18.58 18.51 18.58 18.55 18.55 18.53 18.65 18.74 18.94 18.91 18.97 18.81 18.86 18.97 18.85 18.82 18.78 18.76 18.71 18.75 18.75 18.75 18.82 18.86 18.94 18.93 18.89 18.84 18.9 18.82 18.76 18.79 18.83 18.84 18.84 18.85 18.89 18.85 18.94 18.85 18.81 18.92 18.75 18.87 18.86 18.97 19.01 19.1 19.24 19.2 19.12 18.94 19.14 19.25 19.2 18.66 18.6 18.58 18.63 18.54 18.5 18.53 18.45 18.35 18.39 18.42 18.45 18.51 6/30/07 18.51
FUND SNAPSHOT - ------------------------------------------------------------------------------------- Share Price $18.51 - ------------------------------------------------------------------------------------- Net Asset Value $18.54 - ------------------------------------------------------------------------------------- Premium/(Discount) to NAV -0.16% - ------------------------------------------------------------------------------------- Current Distribution Rate(1) 9.79% - ------------------------------------------------------------------------------------- Net Assets ($000) $482,547 - -------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 5/25/05)
- ------------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - ------------------------------------------------------------------------------------- 6-Month (cumulative) 1.23% 6.09% - ------------------------------------------------------------------------------------- 1-Year 12.51% 11.83% - ------------------------------------------------------------------------------------- Since Inception 5.75% 8.10% - -------------------------------------------------------------------------------------
INDUSTRIES (as a % of total investments) - ------------------------------------------------------------------------------------- Software 9.2% - ------------------------------------------------------------------------------------- Computers & Peripherals 8.3% - ------------------------------------------------------------------------------------- Communications Equipment 7.6% - ------------------------------------------------------------------------------------- Semiconductors & Equipment 5.9% - ------------------------------------------------------------------------------------- Pharmaceuticals 5.1% - ------------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels 4.1% - ------------------------------------------------------------------------------------- Internet Software & Services 3.6% - ------------------------------------------------------------------------------------- Biotechnology 3.3% - ------------------------------------------------------------------------------------- Commercial Banks 3.3% - ------------------------------------------------------------------------------------- Media 3.2% - ------------------------------------------------------------------------------------- Capital Markets 2.9% - ------------------------------------------------------------------------------------- Commercial Services & Supplies 2.7% - ------------------------------------------------------------------------------------- Diversified Telecommunication Services 2.5% - ------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure 2.3% - ------------------------------------------------------------------------------------- Industrial Conglomerates 2.1% - ------------------------------------------------------------------------------------- Insurance 1.9% - ------------------------------------------------------------------------------------- Diversified Financial Services 1.8% - ------------------------------------------------------------------------------------- Specialty Retail 1.8% - ------------------------------------------------------------------------------------- Put Options 0.3% - ------------------------------------------------------------------------------------- Short-Term Investments 3.8% - ------------------------------------------------------------------------------------- Other 24.3% - -------------------------------------------------------------------------------------
1 Current Distribution Rate is based on the Fund's current annualized quarterly distribution divided by the Fund's current market price. The Fund's quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a return of capital for tax purposes. 2 Effective March 1, 2007, the Fund changed from a monthly distribution to a quarterly distribution schedule. The Fund's last monthly distribution was declared March 1, 2007, and paid on April 2, 2007. The Fund's first quarterly distribution was declared June 1, 2007, and paid on July 2, 2007. 10 JPG Nuveen Equity PERFORMANCE Premium and Growth OVERVIEW Fund as of 6-30-07
PORTFOLIO ALLOCATION (AS A % OF TOTAL INVESTMENTS) (PIE CHART) Common Stocks 97.3 Put Options 0.2 Short-Term Investments 2.5
2006-2007 DISTRIBUTIONS PER SHARE(2) (BAR CHART) Jul 0.135 Aug 0.135 Sep 0.135 Oct 0.135 Nov 0.135 Dec 0.135 Jan 0.135 Feb 0.135 Mar 0.135 Jun 0.405
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE (LINE GRAPH)
7/01/06 17.76 - ------- ----- 17.71 17.73 17.76 17.81 17.84 17.56 17.48 17.25 17.23 17.35 17.55 17.51 17.42 17.55 17.7 17.85 17.97 18.18 18.17 18.31 18.39 18.47 18.39 18.43 18.5 18.57 18.54 18.34 18.49 18.56 18.56 18.46 18.6 18.62 18.68 18.73 18.74 18.59 18.62 18.79 18.82 18.99 18.95 19 18.88 18.97 18.97 19.04 19.09 18.89 19 19 18.83 18.7 18.79 18.72 18.69 19.13 19.1 19.14 19.11 19.33 19.33 19.34 19.42 19.43 19.1 19 18.96 19.02 18.9 18.72 18.63 18.64 18.7 18.8 18.86 18.93 18.94 18.86 18.93 18.99 19.03 18.98 18.9 18.94 18.89 18.85 18.9 18.93 19.01 18.86 18.85 18.67 18.68 18.62 18.47 18.4 18.3 18.25 18.54 18.61 18.35 18.61 18.83 18.97 18.99 19.05 19.05 19.05 19 19.03 19.08 19.28 19.29 19.25 19.34 19.48 19.47 19.47 19.35 19.3 19.5 19.48 19.49 19.38 19.38 19.5 19.54 19.42 19.63 19.79 19.58 19.55 19.51 19.55 19.67 19.71 19.63 19.5 19.49 19.51 19.51 19.59 19.86 19.91 19.8 19.93 19.8 19.79 19.78 19.75 19.75 19.75 19.54 19.37 19.51 19.46 19.33 19.26 18.98 18.86 19.34 19.44 19.21 19.35 19.35 19.14 19.19 19.32 19.53 19.58 19.63 19.66 19.38 19.07 19.24 19.15 19.22 19.18 19.42 19.58 19.65 19.6 19.6 19.61 19.68 19.75 19.75 19.74 19.8 19.83 19.79 19.9 19.96 19.81 20 19.99 19.89 19.77 19.76 19.87 19.74 19.77 19.73 19.8 19.84 19.86 19.87 19.93 19.92 19.9 19.91 19.88 19.85 19.82 19.71 19.79 19.76 19.7 19.77 19.77 19.86 19.69 19.67 19.76 19.48 19.53 19.5 19.53 19.63 19.69 19.7 19.68 19.54 19.34 19.48 19.56 19.41 19.04 18.99 19.03 19.06 19.01 18.99 19.04 19.04 18.9 18.83 18.92 18.93 19.1 6/30/07 19.1
FUND SNAPSHOT - ------------------------------------------------------------------------------------- Share Price $19.10 - ------------------------------------------------------------------------------------- Net Asset Value $19.98 - ------------------------------------------------------------------------------------- Premium/(Discount) to NAV -4.40% - ------------------------------------------------------------------------------------- Current Distribution Rate(1) 8.48% - ------------------------------------------------------------------------------------- Net Assets ($000) $330,427 - -------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 11/22/05)
- ------------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - ------------------------------------------------------------------------------------- 6-Month (cumulative) 2.74% 6.16% - ------------------------------------------------------------------------------------- 1-Year 18.53% 14.17% - ------------------------------------------------------------------------------------- Since Inception 5.34% 11.11% - -------------------------------------------------------------------------------------
INDUSTRIES (as a % of total investments) - ------------------------------------------------------------------------------------- Pharmaceuticals 9.4% - ------------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels 9.2% - ------------------------------------------------------------------------------------- Commercial Banks 7.1% - ------------------------------------------------------------------------------------- Insurance 4.5% - ------------------------------------------------------------------------------------- Industrial Conglomerates 4.4% - ------------------------------------------------------------------------------------- Diversified Telecommunication Services 4.1% - ------------------------------------------------------------------------------------- Software 3.4% - ------------------------------------------------------------------------------------- Capital Markets 3.2% - ------------------------------------------------------------------------------------- Semiconductors & Equipment 3.1% - ------------------------------------------------------------------------------------- Diversified Financial Services 2.9% - ------------------------------------------------------------------------------------- Real Estate 2.7% - ------------------------------------------------------------------------------------- Computers & Peripherals 2.5% - ------------------------------------------------------------------------------------- Specialty Retail 2.2% - ------------------------------------------------------------------------------------- Tobacco 2.2% - ------------------------------------------------------------------------------------- Metals & Mining 2.2% - ------------------------------------------------------------------------------------- Household Products 2.0% - ------------------------------------------------------------------------------------- Media 2.0% - ------------------------------------------------------------------------------------- Internet Software & Services 1.9% - ------------------------------------------------------------------------------------- Energy Equipment & Services 1.9% - ------------------------------------------------------------------------------------- Chemicals 1.8% - ------------------------------------------------------------------------------------- Put Options 0.2% - ------------------------------------------------------------------------------------- Short-Term Investments 2.5% - ------------------------------------------------------------------------------------- Other 24.6% - -------------------------------------------------------------------------------------
1 Current Distribution Rate is based on the Fund's current annualized quarterly distribution divided by the Fund's current market price. The Fund's quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a return of capital for tax purposes. 2 Effective March 1, 2007, the Fund changed from a monthly distribution to a quarterly distribution schedule. The Fund's last monthly distribution was declared March 1, 2007, and paid on April 2, 2007. The Fund's first quarterly distribution was declared June 1, 2007, and paid on July 2, 2007. 11 SHAREHOLDER MEETING REPORT The shareholder meeting was held in the offices of Nuveen Investments on April 4, 2007.
JPZ JSN JLA JPG - ------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common Common Common Common Shares Shares Shares Shares - ------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner For 34,744,871 63,233,381 21,509,676 13,788,341 Withhold 277,245 547,523 190,698 56,105 - ------------------------------------------------------------------------------------------------------------------------ Total 35,022,116 63,780,904 21,700,374 13,844,446 - ------------------------------------------------------------------------------------------------------------------------ Lawrence H. Brown(1) For 34,741,858 63,201,698 21,495,808 13,787,924 Withhold 280,258 579,206 204,566 56,522 - ------------------------------------------------------------------------------------------------------------------------ Total 35,022,116 63,780,904 21,700,374 13,844,446 - ------------------------------------------------------------------------------------------------------------------------ Jack B. Evans For 34,751,404 63,238,562 21,517,488 13,788,601 Withhold 270,712 542,342 182,886 55,845 - ------------------------------------------------------------------------------------------------------------------------ Total 35,022,116 63,780,904 21,700,374 13,844,446 - ------------------------------------------------------------------------------------------------------------------------ William C. Hunter For 34,755,564 63,240,760 21,516,773 13,784,926 Withhold 266,552 540,144 183,601 59,520 - ------------------------------------------------------------------------------------------------------------------------ Total 35,022,116 63,780,904 21,700,374 13,844,446 - ------------------------------------------------------------------------------------------------------------------------ David J. Kundert For 34,743,453 63,227,739 21,502,461 13,787,741 Withhold 278,663 553,165 197,913 56,705 - ------------------------------------------------------------------------------------------------------------------------ Total 35,022,116 63,780,904 21,700,374 13,844,446 - ------------------------------------------------------------------------------------------------------------------------ William J. Schneider For 34,747,099 63,224,956 21,512,180 13,789,376 Withhold 275,017 555,948 188,194 55,070 - ------------------------------------------------------------------------------------------------------------------------ Total 35,022,116 63,780,904 21,700,374 13,844,446 - ------------------------------------------------------------------------------------------------------------------------ Timothy R. Schwertfeger For 34,750,269 63,230,013 21,515,252 13,788,741 Withhold 271,847 550,891 185,122 55,705 - ------------------------------------------------------------------------------------------------------------------------ Total 35,022,116 63,780,904 21,700,374 13,844,446 - ------------------------------------------------------------------------------------------------------------------------ Judith M. Stockdale For 34,732,668 63,238,253 21,510,136 13,787,341 Withhold 289,448 542,651 190,238 57,105 - ------------------------------------------------------------------------------------------------------------------------ Total 35,022,116 63,780,904 21,700,374 13,844,446 - ------------------------------------------------------------------------------------------------------------------------ Carole E. Stone For 34,740,098 63,233,436 21,508,186 13,787,741 Withhold 282,018 547,468 192,188 56,705 - ------------------------------------------------------------------------------------------------------------------------ Total 35,022,116 63,780,904 21,700,374 13,844,446 - ------------------------------------------------------------------------------------------------------------------------ Eugene S. Sunshine(2) For 34,748,133 63,228,606 21,515,065 13,788,741 Withhold 273,983 552,298 185,309 55,705 - ------------------------------------------------------------------------------------------------------------------------ Total 35,022,116 63,780,904 21,700,374 13,844,446 - ------------------------------------------------------------------------------------------------------------------------
(1) Mr. Lawrence H. Brown retired from the Board of Trustees on July 1, 2007. (2) Mr. Eugene S. Sunshine resigned from the Board of Trustees on July 31, 2007. 12 JPZ Nuveen Equity Premium Income Fund Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS - 97.1% AEROSPACE & DEFENSE - 2.8% 71,400 Boeing Company $ 6,865,824 100,000 Honeywell International Inc. 5,628,000 32,000 Raytheon Company 1,724,480 89,400 United Technologies Corporation 6,341,142 - -------------------------------------------------------------------------------------------------------------------------------- Total Aerospace & Defense 20,559,446 ------------------------------------------------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS - 0.1% 13,759 United Parcel Service, Inc., Class B 1,004,407 - -------------------------------------------------------------------------------------------------------------------------------- AIRLINES - 0.2% 22,200 AMR Corporation-DEL, (1) 584,970 14,800 Continental Airlines, Inc., (1) 501,276 - -------------------------------------------------------------------------------------------------------------------------------- Total Airlines 1,086,246 ------------------------------------------------------------------------------------------------------------------- AUTO COMPONENTS - 0.2% 21,200 American Axle and Manufacturing Holdings Inc. 627,944 30,487 Cooper Tire & Rubber 842,051 - -------------------------------------------------------------------------------------------------------------------------------- Total Auto Components 1,469,995 ------------------------------------------------------------------------------------------------------------------- AUTOMOBILES - 0.6% 204,000 Ford Motor Company 1,921,680 48,800 General Motors Corporation 1,844,640 4,000 Harley-Davidson, Inc. 238,440 - -------------------------------------------------------------------------------------------------------------------------------- Total Automobiles 4,004,760 ------------------------------------------------------------------------------------------------------------------- BEVERAGES - 1.1% 106,397 Coca-Cola Company 5,565,627 40,500 PepsiCo, Inc. 2,626,425 - -------------------------------------------------------------------------------------------------------------------------------- Total Beverages 8,192,052 ------------------------------------------------------------------------------------------------------------------- BIOTECHNOLOGY - 0.0% 100 Genentech, Inc., (1) 7,566 - -------------------------------------------------------------------------------------------------------------------------------- BUILDING PRODUCTS - 0.1% 25,567 Masco Corporation 727,892 - -------------------------------------------------------------------------------------------------------------------------------- CAPITAL MARKETS - 3.1% 46,000 Charles Schwab Corporation 943,920 19,900 Goldman Sachs Group, Inc. 4,313,325 10,500 Jefferies Group, Inc. 283,290 177,861 JPMorgan Chase & Co. 8,617,365 20,300 Legg Mason, Inc. 1,997,114 31,400 Merrill Lynch & Co., Inc. 2,624,412 23,500 Morgan Stanley 1,971,180 59,400 Waddell & Reed Financial, Inc., Class A 1,544,994 - -------------------------------------------------------------------------------------------------------------------------------- Total Capital Markets 22,295,600 ------------------------------------------------------------------------------------------------------------------- CHEMICALS - 2.7% 51,511 Dow Chemical Company 2,277,816 148,600 E.I. Du Pont de Nemours and Company 7,554,824 40,400 Eastman Chemical Company 2,598,932 42,998 Lubrizol Corporation 2,775,521 36,100 Lyondell Chemical Company 1,340,032 19,000 NL Industries Inc. 190,380 53,293 Olin Corporation 1,119,153 63,622 RPM International, Inc. 1,470,304 - -------------------------------------------------------------------------------------------------------------------------------- Total Chemicals 19,326,962 ------------------------------------------------------------------------------------------------------------------- COMMERCIAL BANKS - 7.1% 383,779 Bank of America Corporation 18,762,955 18,300 Comerica Incorporated 1,088,301
13 JPZ Nuveen Equity Premium Income Fund (continued) Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- COMMERCIAL BANKS (continued) 3,000 Federated Investors Inc. $ 114,990 52,600 HSBC Holdings PLC, Sponsored ADR 4,827,102 145,300 Lloyds TSB Group PLC, Sponsored ADR 6,497,816 38,700 TrustCo Bank Corporation NY 382,356 175,300 U.S. Bancorp 5,776,135 112,400 Wachovia Corporation 5,760,500 34,100 Washington Mutual, Inc. 1,454,024 190,800 Wells Fargo & Company 6,710,436 - -------------------------------------------------------------------------------------------------------------------------------- Total Commercial Banks 51,374,615 ------------------------------------------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES - 2.2% 65,710 Automatic Data Processing, Inc. 3,184,964 3,800 Avery Dennison Corporation 252,624 90,303 Deluxe Corporation 3,667,205 1,700 ITT Educational Services, Inc., (1) 199,546 3,200 Manpower Inc. 295,168 35,000 Paychex, Inc. 1,369,200 23,000 Pitney Bowes Inc. 1,076,860 5,800 Priceline.com Incorporated, (1) 398,692 8,500 R.R. Donnelley & Sons Company 369,835 116,428 ServiceMaster Company 1,799,977 34,100 Standard Register Company 388,740 65,671 Waste Management, Inc. 2,564,453 - -------------------------------------------------------------------------------------------------------------------------------- Total Commercial Services & Supplies 15,567,264 ------------------------------------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT - 2.3% 17,600 ADTRAN, Inc. 457,072 30,600 Avaya Inc., (1) 515,304 8,828 Ciena Corporation, (1) 318,956 263,500 Cisco Systems, Inc., (1) 7,338,475 56,100 Corning Incorporated, (1) 1,433,355 11,875 JDS Uniphase Corporation, (1) 159,481 149,100 Motorola, Inc. 2,639,070 91,479 QUALCOMM Inc. 3,969,274 - -------------------------------------------------------------------------------------------------------------------------------- Total Communications Equipment 16,830,987 ------------------------------------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS - 3.3% 51,646 Apple, Inc., (1) 6,302,878 67,793 Dell Inc., (1) 1,935,490 93,700 EMC Corporation, (1) 1,695,970 129,100 Hewlett-Packard Company 5,760,442 70,044 International Business Machines Corporation 7,372,131 (IBM) 10,457 McAfee Inc., (1) 368,086 133,600 Sun Microsystems Inc., (1) 702,736 - -------------------------------------------------------------------------------------------------------------------------------- Total Computers & Peripherals 24,137,733 ------------------------------------------------------------------------------------------------------------------- CONTAINERS & PACKAGING - 0.8% 9,900 Chesapeake Corporation 124,443 65,700 Packaging Corp. of America 1,662,867 87,489 Sonoco Products Company 3,745,404 - -------------------------------------------------------------------------------------------------------------------------------- Total Containers & Packaging 5,532,714 ------------------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES - 4.5% 16,900 A. G. Edwards, Inc. 1,428,895 91,104 Capitalsource Inc. 2,240,247 8,700 Chicago Mercantile Exchange Holdings Inc., Class 4,648,932 A 438,000 Citigroup Inc. 22,465,020 22,000 Federal Home Loan Mortgage Corporation 1,335,400 2,500 Moody's Corporation 155,500 - -------------------------------------------------------------------------------------------------------------------------------- Total Diversified Financial Services 32,273,994 ------------------------------------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES - 4.4% 582,077 AT&T Inc. 24,156,196 220,900 Citizens Communications Company 3,373,143 107,100 Verizon Communications Inc. 4,409,307 - -------------------------------------------------------------------------------------------------------------------------------- Total Diversified Telecommunication Services 31,938,646 -------------------------------------------------------------------------------------------------------------------
14
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES - 1.5% 27,000 Ameren Corporation $ 1,323,270 33,900 Consolidated Edison, Inc. 1,529,568 25,949 Great Plains Energy Incorporated 755,635 60,600 OGE Energy Corp. 2,220,990 80,800 Pepco Holdings, Inc. 2,278,560 33,400 Progress Energy, Inc. 1,522,706 27,000 Southern Company 925,830 - -------------------------------------------------------------------------------------------------------------------------------- Total Electric Utilities 10,556,559 ------------------------------------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT - 0.9% 122,400 Emerson Electric Co. 5,728,320 400 Hubbell Incorporated, Class B 21,688 14,000 Rockwell Automation, Inc. 972,160 - -------------------------------------------------------------------------------------------------------------------------------- Total Electrical Equipment 6,722,168 ------------------------------------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.0% 6,500 Cogent Inc., (1) 95,485 - -------------------------------------------------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES - 2.6% 21,300 Diamond Offshore Drilling, Inc. 2,163,228 24,668 ENSCO International Incorporated 1,504,995 111,600 Halliburton Company 3,850,200 11,600 Patterson-UTI Energy, Inc. 304,036 79,200 Schlumberger Limited 6,727,248 17,600 Smith International, Inc. 1,032,064 46,500 Tidewater Inc. 3,295,920 - -------------------------------------------------------------------------------------------------------------------------------- Total Energy Equipment & Services 18,877,691 ------------------------------------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING - 0.8% 36,406 CVS Caremark Corporation 1,326,999 200 Longs Drug Stores Corporation 10,504 38,696 SUPERVALU INC 1,792,399 53,325 Wal-Mart Stores, Inc. 2,565,466 800 Whole Foods Market, Inc. 30,640 - -------------------------------------------------------------------------------------------------------------------------------- Total Food & Staples Retailing 5,726,008 ------------------------------------------------------------------------------------------------------------------- FOOD PRODUCTS - 1.0% 173,705 Kraft Foods Inc. 6,123,101 57,000 Sara Lee Corporation 991,800 - -------------------------------------------------------------------------------------------------------------------------------- Total Food Products 7,114,901 ------------------------------------------------------------------------------------------------------------------- GAS UTILITIES - 0.9% 28,200 AGL Resources Inc. 1,141,536 62,601 Atmos Energy Corporation 1,881,786 81,800 Nicor Inc. 3,510,856 - -------------------------------------------------------------------------------------------------------------------------------- Total Gas Utilities 6,534,178 ------------------------------------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES - 0.3% 36,000 Baxter International Inc. 2,028,240 3,025 Medtronic, Inc. 156,877 - -------------------------------------------------------------------------------------------------------------------------------- Total Health Care Equipment & Supplies 2,185,117 ------------------------------------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES - 1.0% 15,450 Coventry Health Care, Inc., (1) 890,693 6,700 Mentor Corporation 272,556 2,100 Omnicare, Inc. 75,726 88,646 UnitedHealth Group Incorporated 4,533,356 21,300 Wellpoint Inc., (1) 1,700,379 - -------------------------------------------------------------------------------------------------------------------------------- Total Health Care Providers & Services 7,472,710 ------------------------------------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE - 1.0% 17,000 Carnival Corporation 829,090 13,566 Harrah's Entertainment, Inc. 1,156,637 22,661 International Game Technology 899,642 86,900 McDonald's Corporation 4,411,044 - -------------------------------------------------------------------------------------------------------------------------------- Total Hotels, Restaurants & Leisure 7,296,413 -------------------------------------------------------------------------------------------------------------------
15 JPZ Nuveen Equity Premium Income Fund (continued) Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- HOUSEHOLD DURABLES - 1.7% 4,100 Black & Decker Corporation $ 362,071 22,017 D.R. Horton, Inc. 438,799 1,300 KB Home 51,181 107,400 Newell Rubbermaid Inc. 3,160,782 12,400 Snap-on Incorporated 626,324 25,600 Stanley Works 1,553,920 106,700 Tupperware Corporation 3,066,558 29,936 Whirlpool Corporation 3,328,883 - -------------------------------------------------------------------------------------------------------------------------------- Total Household Durables 12,588,518 ------------------------------------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS - 2.3% 53,200 Colgate-Palmolive Company 3,450,020 22,000 Kimberly-Clark Corporation 1,471,580 193,080 Procter & Gamble Company 11,814,565 - -------------------------------------------------------------------------------------------------------------------------------- Total Household Products 16,736,165 ------------------------------------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES - 3.9% 2,000 American Standard Companies Inc. 117,960 657,430 General Electric Company 25,166,420 52,800 Genuine Parts Company 2,618,880 - -------------------------------------------------------------------------------------------------------------------------------- Total Industrial Conglomerates 27,903,260 ------------------------------------------------------------------------------------------------------------------- INSURANCE - 4.2% 36,800 Allstate Corporation 2,263,568 111,000 American International Group, Inc. 7,773,330 24,405 Arthur J. Gallagher & Co. 680,411 209,268 Fidelity National Title Group Inc., Class A 4,959,652 12,500 Hartford Financial Services Group, Inc. 1,231,375 80,446 Lincoln National Corporation 5,707,644 72,500 Marsh & McLennan Companies, Inc. 2,238,800 1,100 Mercury General Corporation 60,621 46,000 Travelers Companies, Inc. 2,461,000 52,700 Unitrin, Inc. 2,591,786 - -------------------------------------------------------------------------------------------------------------------------------- Total Insurance 29,968,187 ------------------------------------------------------------------------------------------------------------------- INTERNET & CATALOG RETAIL - 0.3% 24,004 Amazon.com, Inc., (1) 1,642,114 16,438 IAC/InterActiveCorp., (1) 568,919 - -------------------------------------------------------------------------------------------------------------------------------- Total Internet & Catalog Retail 2,211,033 ------------------------------------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES - 1.5% 56,917 eBay Inc., (1) 1,831,589 3,160 F5 Networks, Inc., (1) 254,696 10,606 Google Inc., Class A, (1) 5,550,968 7,100 Openwave Systems Inc., (1) 44,446 159,665 United Online, Inc. 2,632,876 30,100 Yahoo! Inc., (1) 816,613 - -------------------------------------------------------------------------------------------------------------------------------- Total Internet Software & Services 11,131,188 ------------------------------------------------------------------------------------------------------------------- IT SERVICES - 0.2% 2,050 FactSet Research Systems Inc. 140,118 6,395 Fidelity National Information Services 347,121 - -------------------------------------------------------------------------------------------------------------------------------- Total IT Services 487,239 ------------------------------------------------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS - 0.1% 2,138 Brunswick Corporation 69,763 17,155 Eastman Kodak Company 477,424 7,900 Polaris Industries Inc. 427,864 - -------------------------------------------------------------------------------------------------------------------------------- Total Leisure Equipment & Products 975,051 ------------------------------------------------------------------------------------------------------------------- MACHINERY - 2.2% 30,891 Briggs & Stratton Corporation 974,920 75,600 Caterpillar Inc. 5,919,480 2,400 Cummins Inc. 242,904 9,200 Deere & Company 1,110,808 13,600 Graco Inc. 547,808 16,555 Ingersoll Rand Company Limited, Class A 907,545 400 Joy Global Inc. 23,332
16
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- MACHINERY (continued) 6,500 Parker Hannifin Corporation $ 636,415 57,966 SPX Corporation 5,089,994 12,000 Timken Company 433,320 - -------------------------------------------------------------------------------------------------------------------------------- Total Machinery 15,886,526 ------------------------------------------------------------------------------------------------------------------- MEDIA - 1.8% 45,213 CBS Corporation, Class B 1,506,497 2,780 Citadel Broadcasting Corporation 17,931 67,800 Clear Channel Communications, Inc. 2,564,196 15,000 Dow Jones & Company, Inc. 861,750 5,355 Idearc Inc. 189,192 39,613 New York Times, Class A 1,006,170 26,000 Omnicom Group Inc. 1,375,920 183,600 Regal Entertainment Group, Class A 4,026,348 5,800 ValueClick, Inc., (1) 170,868 36,200 Walt Disney Company 1,235,868 6,200 XM Satellite Radio Holdings Inc., Class A, (1) 72,974 - -------------------------------------------------------------------------------------------------------------------------------- Total Media 13,027,714 ------------------------------------------------------------------------------------------------------------------- METALS & MINING - 1.4% 16,400 Alcoa Inc. 664,692 28,800 CONSOL Energy Inc. 1,327,968 32,000 Nucor Corporation 1,876,800 63,400 Southern Copper Corporation 5,976,084 - -------------------------------------------------------------------------------------------------------------------------------- Total Metals & Mining 9,845,544 ------------------------------------------------------------------------------------------------------------------- MULTILINE RETAIL - 1.2% 13,000 Family Dollar Stores, Inc. 446,160 38,002 Federated Department Stores, Inc. 1,511,720 55,400 Nordstrom, Inc. 2,832,048 7,900 Sears Holding Corporation, (1) 1,339,050 40,800 Target Corporation 2,594,880 - -------------------------------------------------------------------------------------------------------------------------------- Total Multiline Retail 8,723,858 ------------------------------------------------------------------------------------------------------------------- MULTI-UTILITIES - 1.8% 125,900 Duke Energy Corporation 2,303,970 82,456 Integrys Energy Group, Inc. 4,182,993 28,500 National Fuel Gas Company 1,234,335 49,100 ONEOK, Inc. 2,475,131 32,100 Public Service Enterprise Group Incorporated 2,817,738 - -------------------------------------------------------------------------------------------------------------------------------- Total Multi-Utilities 13,014,167 ------------------------------------------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS - 7.7% 1,100 BP Amoco PLC 79,354 167,900 Chevron Corporation 14,143,896 63,649 ConocoPhillips 4,996,447 422,200 Exxon Mobil Corporation 35,414,132 9,900 Valero Energy Corporation 731,214 - -------------------------------------------------------------------------------------------------------------------------------- Total Oil, Gas & Consumable Fuels 55,365,043 ------------------------------------------------------------------------------------------------------------------- PAPER & FOREST PRODUCTS - 0.6% 12,070 Bowater Incorporated 301,147 47,000 Weyerhaeuser Company 3,709,710 - -------------------------------------------------------------------------------------------------------------------------------- Total Paper & Forest Products 4,010,857 ------------------------------------------------------------------------------------------------------------------- PHARMACEUTICALS - 7.7% 111,700 Abbott Laboratories 5,981,535 246,638 Bristol-Myers Squibb Company 7,783,895 13,040 CV Therapeutics Inc., (1) 172,258 63,000 Eli Lilly and Company 3,520,440 11,471 GlaxoSmithKline PLC, ADR 600,736 164,856 Johnson & Johnson 10,158,427 234,802 Merck & Co. Inc. 11,693,140 426,857 Pfizer Inc. 10,914,733 22,700 Schering-Plough Corporation 690,988 69,200 Wyeth 3,967,928 - -------------------------------------------------------------------------------------------------------------------------------- Total Pharmaceuticals 55,484,080 -------------------------------------------------------------------------------------------------------------------
17 JPZ Nuveen Equity Premium Income Fund (continued) Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- REAL ESTATE - 1.7% 9,500 American Financial Realty Trust $ 98,040 57,700 American Home Mortgage Investment Corp. (4) 1,060,526 154,100 Crescent Real Estate Equities Company 3,458,004 39,900 First Industrial Realty Trust, Inc. 1,546,524 21,000 Health Care REIT, Inc. 847,560 58,500 Healthcare Realty Trust, Inc. 1,625,130 117,900 HRPT Properties Trust 1,226,160 22,300 Lexington Corporate Properties Trust 463,840 5,700 Liberty Property Trust 250,401 42,800 Nationwide Health Properties, Inc. 1,164,160 7,682 Newcastle Investment Corporation 192,588 27,000 Senior Housing Properties Trust 549,450 - -------------------------------------------------------------------------------------------------------------------------------- Total Real Estate 12,482,383 ------------------------------------------------------------------------------------------------------------------- ROAD & RAIL - 0.3% 17,069 Burlington Northern Santa Fe Corporation 1,453,255 13,563 Norfolk Southern Corporation 713,007 - -------------------------------------------------------------------------------------------------------------------------------- Total Road & Rail 2,166,262 ------------------------------------------------------------------------------------------------------------------- SEMICONDUCTORS & EQUIPMENT - 2.7% 11,500 Advanced Micro Devices, Inc., (1) 164,450 26,500 Analog Devices, Inc. 997,460 105,600 Applied Materials, Inc. 2,098,272 45,300 Broadcom Corporation, Class A, (1) 1,325,025 190,771 Intel Corporation 4,532,719 10,600 Intersil Holding Corporation, Class A 333,476 6,800 Lam Research Corporation, (1) 349,520 64,115 Maxim Integrated Products, Inc. 2,142,082 39,700 Microchip Technology Incorporated 1,470,488 24,800 National Semiconductor Corporation 701,096 20,800 NVIDIA Corporation, (1) 859,248 115,500 Texas Instruments Incorporated 4,346,265 - -------------------------------------------------------------------------------------------------------------------------------- Total Semiconductors & Equipment 19,320,101 ------------------------------------------------------------------------------------------------------------------- SOFTWARE - 3.3% 42,852 Adobe Systems Incorporated, (1) 1,720,508 4,580 Akamai Technologies, Inc., (1) 222,771 11,400 Autodesk, Inc., (1) 536,712 34,800 BEA Systems, Inc., (1) 476,412 16,333 Cognizant Technology Solutions Corporation, Class A, (1) 1,226,445 438,892 Microsoft Corporation 12,934,147 16,433 NAVTEQ Corporation, (1) 695,773 251,178 Oracle Corporation, (1) 4,950,718 6,100 Red Hat, Inc., (1) 135,908 10,500 Salesforce.com, Inc., (1) 450,030 3,384 VeriSign, Inc., (1) 107,374 - -------------------------------------------------------------------------------------------------------------------------------- Total Software 23,456,798 ------------------------------------------------------------------------------------------------------------------- SPECIALTY RETAIL - 2.1% 27,715 Abercrombie & Fitch Co., Class A 2,022,641 47,700 American Eagle Outfitters, Inc. 1,223,982 52,650 Best Buy Co., Inc. 2,457,176 24,200 Chico's FAS, Inc., (1) 589,028 9,100 Christopher & Banks Corporation 156,065 86,896 Home Depot, Inc. 3,419,358 53,597 Limited Brands, Inc. 1,471,238 55,300 Lowe's Companies, Inc. 1,697,157 5,212 RadioShack Corporation 172,726 500 Sherwin-Williams Company 33,235 5,000 Tiffany & Co. 265,300 19,700 TJX Companies, Inc. 541,750 83,469 Tuesday Morning Corporation 1,031,677 - -------------------------------------------------------------------------------------------------------------------------------- Total Specialty Retail 15,081,333 ------------------------------------------------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS - 0.3% 27,238 VF Corporation 2,494,456 - --------------------------------------------------------------------------------------------------------------------------------
18
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE - 0.1% 60,800 New York Community Bancorp, Inc. $ 1,034,816 - -------------------------------------------------------------------------------------------------------------------------------- TOBACCO - 2.5% 217,733 Altria Group, Inc. 15,271,793 32,200 Reynolds American Inc. 2,099,440 34,424 Vector Group Ltd. 775,573 - -------------------------------------------------------------------------------------------------------------------------------- Total Tobacco 18,146,806 ------------------------------------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (COST $512,242,701) 700,453,494 =================================================================================================================== PRINCIPAL AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 4.8% $ 34,909 Repurchase Agreement with Fixed Income Clearing 4.000% 7/02/07 $ 34,909,257 Corporation, dated 6/29/07, repurchase price $34,920,893, collateralized by $29,190,000 U.S. Treasury Bonds, 7.125%, due 2/15/23, value $35,611,800 ========== ------------------------------------------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (COST $34,909,257) 34,909,257 =================================================================================================================== NOTIONAL EXPIRATION STRIKE CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE - ----------------------------------------------------------------------------------------------------------------------------------- PUT OPTIONS - 0.3% 692 S&P 500 Index $ 91,690,000 7/21/07 $ 1,325 $ 31,140 692 S&P 500 Index 93,420,000 7/21/07 $ 1,350 58,820 684 S&P 500 Index 92,340,000 8/18/07 1,350 328,320 653 S&P 500 Index 89,787,500 8/18/07 1,375 424,450 664 S&P 500 Index 87,980,000 9/22/07 1,325 464,800 619 S&P 500 Index 83,565,000 9/22/07 1,350 550,910 608 S&P 500 Index 83,600,000 9/22/07 1,375 693,120 - ----------------------------------------------------------------------------------------------------------------------------------- 4,612 TOTAL PUT OPTIONS (COST $3,549,040) 622,382,500 2,551,560 =================================================================================================================================== TOTAL INVESTMENTS (COST $550,700,998) - 102.2% 737,914,311 ==================================================================================================================== NOTIONAL EXPIRATION STRIKE CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CALL OPTIONS WRITTEN - (2.3)% (3) (1,140) S&P 500 Index $ (168,150,000) 7/21/07 $ 1,475 $ (4,827,900) (872) S&P 500 Index (130,800,000) 7/21/07 1,500 (2,123,320) (578) S&P 500 Index (88,145,000) 7/21/07 1,525 (630,020) (580) S&P 500 Index (85,550,000) 8/18/07 1,475 (3,268,300) (567) S&P 500 Index (85,050,000) 8/18/07 1,500 (2,214,135) (311) S&P 500 Index (47,427,500) 8/18/07 1,525 (763,505) (564) S&P 500 Index (84,600,000) 9/22/07 1,500 (2,946,900) - ----------------------------------------------------------------------------------------------------------------------------------- (4,612) TOTAL CALL OPTIONS WRITTEN (PREMIUMS RECEIVED (689,722,500) (16,774,080) $22,787,880) =================================================================================================================================== OTHER ASSETS LESS LIABILITIES - 0.1% 600,157 ==================================================================================================================== NET ASSETS - 100% $ 721,740,388 ====================================================================================================================
(1) Non-income producing. (2) For disclosure purposes, Notional Amount is calculated by multiplying the number of Contracts by the Strike Price by 100. (3) The Fund may designate up to 100% of its Common Stock investments to cover outstanding Call Options Written. (4) At or subsequent to June 30, 2007, this issue was under the protection of the Federal Bankruptcy Court. ADR American Depositary Receipt.
See accompanying notes to financial statements. 19 JSN Nuveen Equity Premium Opportunity Fund Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS - 99.2% AEROSPACE & DEFENSE - 2.5% 79,265 Boeing Company $ 7,622,122 133,500 Honeywell International Inc. 7,513,380 26,000 Lockheed Martin Corporation 2,447,380 41,700 Northrop Grumman Corporation 3,247,179 46,000 Raytheon Company 2,478,940 107,600 United Technologies Corporation 7,632,068 - -------------------------------------------------------------------------------------------------------------------------------- Total Aerospace & Defense 30,941,069 ------------------------------------------------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS - 0.6% 97,866 United Parcel Service, Inc., Class B 7,144,218 - -------------------------------------------------------------------------------------------------------------------------------- AIRLINES - 0.2% 93,200 AMR Corporation-DEL, (1) 2,455,820 - -------------------------------------------------------------------------------------------------------------------------------- AUTOMOBILES - 0.4% 82,581 General Motors Corporation 3,121,562 35,100 Harley-Davidson, Inc. 2,092,311 - -------------------------------------------------------------------------------------------------------------------------------- Total Automobiles 5,213,873 ------------------------------------------------------------------------------------------------------------------- BEVERAGES - 1.2% 176,250 Coca-Cola Company 9,219,638 83,200 PepsiCo, Inc. 5,395,520 - -------------------------------------------------------------------------------------------------------------------------------- Total Beverages 14,615,158 - -------------------------------------------------------------------------------------------------------------------------------- BIOTECHNOLOGY - 2.0% 87,961 Amgen Inc., (1) 4,863,364 117,884 Biogen Idec Inc., (1) 6,306,794 44,700 Genentech, Inc., (1) 3,382,002 36,400 Genzyme Corporation, (1) 2,344,160 184,200 Gilead Sciences, Inc., (1) 7,141,434 3,029 Sepracor Inc., (1) 124,250 - -------------------------------------------------------------------------------------------------------------------------------- Total Biotechnology 24,162,004 ------------------------------------------------------------------------------------------------------------------- CAPITAL MARKETS - 3.4% 156,050 Charles Schwab Corporation 3,202,146 26,800 Goldman Sachs Group, Inc. 5,808,900 308,177 JPMorgan Chase & Co. 14,931,176 32,749 Legg Mason, Inc. 3,221,847 132,250 Morgan Stanley 11,093,130 136,400 Waddell & Reed Financial, Inc., Class A 3,547,764 - -------------------------------------------------------------------------------------------------------------------------------- Total Capital Markets 41,804,963 ------------------------------------------------------------------------------------------------------------------- CHEMICALS - 1.7% 63,500 Dow Chemical Company 2,807,970 134,900 E.I. Du Pont de Nemours and Company 6,858,316 41,579 Eastman Chemical Company 2,674,777 72,000 Lubrizol Corporation 4,647,600 26,400 Lyondell Chemical Company 979,968 152,650 RPM International, Inc. 3,527,742 - -------------------------------------------------------------------------------------------------------------------------------- Total Chemicals 21,496,373 ------------------------------------------------------------------------------------------------------------------- COMMERCIAL BANKS - 4.3% 485,130 Bank of America Corporation 23,718,006 113,756 Commerce Bancorp, Inc. 4,207,834 30,000 F.N.B. Corporation PA 502,200 11,515 HSBC Holdings PLC, Sponsored ADR 1,056,732 91,300 Lloyds TSB Group PLC, Sponsored ADR 4,082,936 283,700 U.S. Bancorp 9,347,915
20
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- COMMERCIAL BANKS (continued) 41,702 Wachovia Corporation $ 2,137,228 217,900 Wells Fargo & Company 7,663,543 - -------------------------------------------------------------------------------------------------------------------------------- Total Commercial Banks 52,716,394 ------------------------------------------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES - 2.1% 98,100 Automatic Data Processing, Inc. 4,754,907 28,958 Corporate Executive Board Company 1,879,664 88,440 Deluxe Corporation 3,591,548 19,417 Fair Isaac Corporation 779,010 57,150 Manpower Inc. 5,271,516 49,600 R.R. Donnelley & Sons Company 2,158,096 267,200 ServiceMaster Company 4,130,912 95,550 Waste Management, Inc. 3,731,228 - -------------------------------------------------------------------------------------------------------------------------------- Total Commercial Services & Supplies 26,296,881 ------------------------------------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT - 5.7% 67,678 ADTRAN, Inc. 1,757,598 880,708 Cisco Systems, Inc., (1) 24,527,718 184,500 Corning Incorporated, (1) 4,713,975 55,800 Harris Corporation 3,043,890 243,800 Motorola, Inc. 4,315,260 552,115 QUALCOMM Inc. 23,956,270 44,412 Research In Motion Limited, (1) 8,881,956 - -------------------------------------------------------------------------------------------------------------------------------- Total Communications Equipment 71,196,667 ------------------------------------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS - 5.6% 326,729 Apple, Inc., (1) 39,874,007 46,900 Dell Inc., (1) 1,338,995 222,900 EMC Corporation, (1) 4,034,490 317,700 Hewlett-Packard Company 14,175,774 63,117 International Business Machines Corporation (IBM) 6,643,064 57,350 McAfee Inc., (1) 2,018,720 46,028 Network Appliance, Inc., (1) 1,344,018 - -------------------------------------------------------------------------------------------------------------------------------- Total Computers & Peripherals 69,429,068 ------------------------------------------------------------------------------------------------------------------- CONSUMER FINANCE - 0.2% 31,000 American Express Company 1,896,580 55,700 Western Union Company 1,160,231 - -------------------------------------------------------------------------------------------------------------------------------- Total Consumer Finance 3,056,811 ------------------------------------------------------------------------------------------------------------------- CONTAINERS & PACKAGING - 0.9% 206,200 Packaging Corp. of America 5,218,922 127,450 Sonoco Products Company 5,456,135 - -------------------------------------------------------------------------------------------------------------------------------- Total Containers & Packaging 10,675,057 ------------------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES - 3.7% 56,200 A. G. Edwards, Inc. 4,751,710 1,171 Capitalsource Inc. 28,795 11,000 Chicago Mercantile Exchange Holdings Inc., Class A 5,877,960 549,300 Citigroup Inc. 28,173,597 33,900 Eaton Vance Corporation 1,497,702 126,150 ING Group N.V., Sponsored ADR 5,546,816 - -------------------------------------------------------------------------------------------------------------------------------- Total Diversified Financial Services 45,876,580 ------------------------------------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES - 3.6% 745,702 AT&T Inc. 30,946,625 163,538 Citizens Communications Company 2,497,225 13,679 Level 3 Communications Inc., (1) 80,022 110,023 Sprint Nextel Corporation 2,278,576 219,641 Verizon Communications Inc. 9,042,620 - -------------------------------------------------------------------------------------------------------------------------------- Total Diversified Telecommunication Services 44,845,068 ------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES - 1.1% 38,400 Ameren Corporation 1,881,984 92,400 Companhia Energetica de Minas Gerais 1,949,640 884 CPFL Energia SA 53,685 113,550 Great Plains Energy Incorporated 3,306,576
21 JSN Nuveen Equity Premium Opportunity Fund (continued) Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES (continued) 92,500 OGE Energy Corp. $ 3,390,125 118,050 Pepco Holdings, Inc. 3,329,010 - -------------------------------------------------------------------------------------------------------------------------------- Total Electric Utilities 13,911,020 ------------------------------------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT - 1.3% 52,646 Cooper Industries, Ltd., Class A 3,005,560 161,600 Emerson Electric Co. 7,562,880 46,400 Hubbell Incorporated, Class B 2,515,808 39,000 Rockwell Automation, Inc. 2,708,160 - -------------------------------------------------------------------------------------------------------------------------------- Total Electrical Equipment 15,792,408 ------------------------------------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.4% 122,860 Gentex Corporation 2,419,113 51,200 Roper Industries Inc. 2,923,520 - -------------------------------------------------------------------------------------------------------------------------------- Total Electronic Equipment & Instruments 5,342,633 ------------------------------------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES - 2.2% 45,800 Diamond Offshore Drilling, Inc. 4,651,448 50,173 ENSCO International Incorporated 3,061,055 194,500 Halliburton Company 6,710,250 57,216 Patterson-UTI Energy, Inc. 1,499,631 75,000 Schlumberger Limited 6,370,500 77,621 Tidewater Inc. 5,501,776 - -------------------------------------------------------------------------------------------------------------------------------- Total Energy Equipment & Services 27,794,660 ------------------------------------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING - 0.9% 86,506 CVS Caremark Corporation 3,153,144 49,900 Kroger Co. 1,403,687 33,114 SUPERVALU INC 1,533,840 33,376 Walgreen Co. 1,453,191 87,014 Wal-Mart Stores, Inc. 4,186,244 - -------------------------------------------------------------------------------------------------------------------------------- Total Food & Staples Retailing 11,730,106 ------------------------------------------------------------------------------------------------------------------- FOOD PRODUCTS - 0.9% 153,214 Kraft Foods Inc. 5,400,794 61,000 Monsanto Company 4,119,940 90,000 Sara Lee Corporation 1,566,000 - -------------------------------------------------------------------------------------------------------------------------------- Total Food Products 11,086,734 ------------------------------------------------------------------------------------------------------------------- GAS UTILITIES - 0.9% 24,400 AGL Resources Inc. 987,712 149,850 Atmos Energy Corporation 4,504,491 122,400 Nicor Inc. 5,253,408 22,569 Piedmont Natural Gas Company 556,326 - -------------------------------------------------------------------------------------------------------------------------------- Total Gas Utilities 11,301,937 ------------------------------------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES - 0.6% 83,900 Baxter International Inc. 4,726,926 4,300 Boston Scientific Corporation, (1) 65,962 35,700 Hillenbrand Industries 2,320,500 - -------------------------------------------------------------------------------------------------------------------------------- Total Health Care Equipment & Supplies 7,113,388 ------------------------------------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES - 1.4% 47,762 Aetna Inc. 2,359,443 7,100 AmericGroup Corporation, (1) 168,980 37,826 Coventry Health Care, Inc., (1) 2,180,669 70,244 Health Management Associates Inc. 797,972 43,000 Mentor Corporation 1,749,240 104,537 UnitedHealth Group Incorporated 5,346,022 60,402 Wellpoint Inc., (1) 4,821,892 - -------------------------------------------------------------------------------------------------------------------------------- Total Health Care Providers & Services 17,424,218 ------------------------------------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE - 1.5% 68,500 International Game Technology 2,719,450 218,400 McDonald's Corporation 11,085,984
22
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE (continued) 43,343 Starwood Hotels & Resorts Worldwide, Inc. $ 2,907,015 15,200 Wynn Resorts Ltd 1,363,288 - -------------------------------------------------------------------------------------------------------------------------------- Total Hotels, Restaurants & Leisure 18,075,737 ------------------------------------------------------------------------------------------------------------------- HOUSEHOLD DURABLES - 1.1% 184,850 Newell Rubbermaid Inc. 5,440,136 44,700 Stanley Works 2,713,290 52,780 Whirlpool Corporation 5,869,136 - -------------------------------------------------------------------------------------------------------------------------------- Total Household Durables 14,022,562 ------------------------------------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS - 1.4% 59,100 Colgate-Palmolive Company 3,832,635 229,375 Procter & Gamble Company 14,035,456 - -------------------------------------------------------------------------------------------------------------------------------- Total Household Products 17,868,091 ------------------------------------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES - 3.0% 9,932 3M Co. 861,998 850,058 General Electric Company 32,540,220 57,800 Genuine Parts Company 2,866,880 12,000 Tyco International Ltd. 405,480 - -------------------------------------------------------------------------------------------------------------------------------- Total Industrial Conglomerates 36,674,578 ------------------------------------------------------------------------------------------------------------------- INSURANCE - 2.0% 43,400 Allstate Corporation 2,669,534 120,020 American International Group, Inc. 8,405,001 118,050 Arthur J. Gallagher & Co. 3,291,234 53,486 Fidelity National Title Group Inc., Class A 1,267,618 105,900 Marsh & McLennan Companies, Inc. 3,270,192 35,150 Mercury General Corporation 1,937,117 81,750 Unitrin, Inc. 4,020,465 - -------------------------------------------------------------------------------------------------------------------------------- Total Insurance 24,861,161 ------------------------------------------------------------------------------------------------------------------- INTERNET & CATALOG RETAIL - 0.5% 62,150 Amazon.com, Inc., (1) 4,251,682 45,134 IAC/InterActiveCorp., (1) 1,562,088 - -------------------------------------------------------------------------------------------------------------------------------- Total Internet & Catalog Retail 5,813,770 ------------------------------------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES - 3.1% 2,500 Baidu.com, Inc., (1) 419,950 392,000 Earthlink, Inc., (1) 2,928,240 173,114 eBay Inc., (1) 5,570,809 41,698 Google Inc., Class A, (1) 21,823,899 265,070 United Online, Inc. 4,371,004 109,390 Yahoo! Inc., (1) 2,967,751 - -------------------------------------------------------------------------------------------------------------------------------- Total Internet Software & Services 38,081,653 ------------------------------------------------------------------------------------------------------------------- IT SERVICES - 0.5% 7,300 aQuantive, Inc., (1) 465,740 53,300 BearingPoint Inc., (1) 389,623 2,519 Broadridge Financial Solutions, Inc. 48,163 87,200 Electronic Data Systems Corporation 2,418,056 26,178 Fidelity National Information Services 1,420,942 55,700 First Data Corporation 1,819,719 - -------------------------------------------------------------------------------------------------------------------------------- Total IT Services 6,562,243 ------------------------------------------------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS - 0.3% 85,100 Mattel, Inc. 2,152,179 34,500 Polaris Industries Inc. 1,868,520 - -------------------------------------------------------------------------------------------------------------------------------- Total Leisure Equipment & Products 4,020,699 ------------------------------------------------------------------------------------------------------------------- MACHINERY - 1.7% 105,200 Caterpillar Inc. 8,237,160 52,750 Graco Inc. 2,124,770 23,730 Joy Global Inc. 1,384,171 76,400 SPX Corporation 6,708,684 67,000 Timken Company 2,419,370 - -------------------------------------------------------------------------------------------------------------------------------- Total Machinery 20,874,155 -------------------------------------------------------------------------------------------------------------------
23 JSN Nuveen Equity Premium Opportunity Fund (continued) Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- MARINE - 0.0% 20,735 Eagle Bulk Shipping Inc. $ 464,671 - -------------------------------------------------------------------------------------------------------------------------------- MEDIA - 2.5% 11,039 Cablevision Systems Corporation, (1) 399,501 19,550 Catalina Marketing Corporation 615,825 17,100 CBS Corporation, Class B 569,772 118,281 Citadel Broadcasting Corporation 762,912 71,700 Clear Channel Communications, Inc. 2,711,694 12,600 Dow Jones & Company, Inc. 723,870 51,300 Entrcom Communications Corporation 1,276,857 10,982 Idearc Inc. 387,994 8,687 Live Nation Inc., (1) 194,415 144,450 News Corporation, Class A 3,063,785 56,950 Omnicom Group Inc. 3,013,794 234,500 Regal Entertainment Group, Class A 5,142,585 308,859 Sirius Satellite Radio Inc., (1) 932,754 19,800 Time Warner Inc. 416,592 46,400 Viacom Inc., Class B, (1) 1,931,632 144,300 Walt Disney Company 4,926,402 192,470 Westwood One, Inc., (1) 1,383,859 189,337 XM Satellite Radio Holdings Inc., Class A, (1) 2,228,496 - -------------------------------------------------------------------------------------------------------------------------------- Total Media 30,682,739 ------------------------------------------------------------------------------------------------------------------- METALS & MINING - 1.2% 52,210 Alcoa Inc. 2,116,071 140,000 Companhia Siderurgica Nacional S.A., Sponsored ADR 7,240,800 58,775 Southern Copper Corporation 5,540,132 - -------------------------------------------------------------------------------------------------------------------------------- Total Metals & Mining 14,897,003 ------------------------------------------------------------------------------------------------------------------- MULTILINE RETAIL - 1.0% 12,800 Family Dollar Stores, Inc. 439,296 66,792 Federated Department Stores, Inc. 2,656,986 93,000 Nordstrom, Inc. 4,754,160 9,977 Sears Holding Corporation, (1) 1,691,102 44,400 Target Corporation 2,823,840 - -------------------------------------------------------------------------------------------------------------------------------- Total Multiline Retail 12,365,384 ------------------------------------------------------------------------------------------------------------------- MULTI-UTILITIES - 1.3% 181,250 Duke Energy Corporation 3,316,875 88,300 National Fuel Gas Company 3,824,273 95,800 ONEOK, Inc. 4,829,278 42,100 Public Service Enterprise Group Incorporated 3,695,538 - -------------------------------------------------------------------------------------------------------------------------------- Total Multi-Utilities 15,665,964 ------------------------------------------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS - 5.3% 183,650 Chevron Corporation 15,470,676 74,000 ConocoPhillips 5,809,000 491,421 Exxon Mobil Corporation 41,220,393 20,922 General Maritime Corporation, (1) 560,291 44,960 Norsk Hydro ASA 1,720,619 2,417 Occidental Petroleum Corporation 139,896 15,611 Royal Dutch Shell PLC, Class A 1,267,613 - -------------------------------------------------------------------------------------------------------------------------------- Total Oil, Gas & Consumable Fuels 66,188,488 ------------------------------------------------------------------------------------------------------------------- PAPER & FOREST PRODUCTS - 0.2% 37,000 Bowater Incorporated 923,150 - -------------------------------------------------------------------------------------------------------------------------------- PHARMACEUTICALS - 7.3% 152,900 Abbott Laboratories 8,187,795 406,450 Bristol-Myers Squibb Company 12,827,562 108,800 Celgene Corporation, (1) 6,237,504 24,800 CV Therapeutics Inc., (1) 327,608 92,538 Eli Lilly and Company 5,171,023 49,700 GlaxoSmithKline PLC, ADR 2,602,789 111,950 Johnson & Johnson 6,898,359 381,350 Merck & Co. Inc. 18,991,230 6,000 Neurocrine Biosciences Inc., (1) 67,380 698,250 Pfizer Inc. 17,854,253
24
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- PHARMACEUTICALS (continued) 124,850 Schering-Plough Corporation $ 3,800,434 139,850 Wyeth 8,018,999 - -------------------------------------------------------------------------------------------------------------------------------- Total Pharmaceuticals 90,984,936 ------------------------------------------------------------------------------------------------------------------- REAL ESTATE - 1.6% 277,600 Crescent Real Estate Equities Company 6,229,344 4,742 Deerfield Triarc Capital Corporation 69,375 56,800 First Industrial Realty Trust, Inc. 2,201,568 59,500 Health Care REIT, Inc. 2,401,420 86,441 Hospitality Properties Trust 3,586,437 18,978 Host Hotels & Resorts Inc. 438,771 149,200 HRPT Properties Trust 1,551,680 112,500 Nationwide Health Properties, Inc. 3,060,000 4,210 Newcastle Investment Corporation 105,545 5,793 RAIT Investment Trust 150,734 - -------------------------------------------------------------------------------------------------------------------------------- Total Real Estate 19,794,874 ------------------------------------------------------------------------------------------------------------------- ROAD & RAIL - 0.1% 15,000 Union Pacific Corporation 1,727,250 - -------------------------------------------------------------------------------------------------------------------------------- SEMICONDUCTORS & EQUIPMENT - 4.7% 84,500 Advanced Micro Devices, Inc., (1) 1,208,350 67,374 Altera Corporation 1,490,987 110,003 Analog Devices, Inc. 4,140,513 253,400 Applied Materials, Inc. 5,035,058 131,882 Broadcom Corporation, Class A, (1) 3,857,549 955,665 Intel Corporation 22,706,600 26,000 Intersil Holding Corporation, Class A 817,960 4,607 KLA-Tencor Corporation 253,155 55,742 Linear Technology Corporation 2,016,746 87,187 Marvell Technology Group Ltd., (1) 1,587,675 6,035 Maxim Integrated Products, Inc. 201,629 123,350 National Semiconductor Corporation 3,487,105 213,250 Texas Instruments Incorporated 8,024,598 111,960 Xilinx, Inc. 2,997,169 - -------------------------------------------------------------------------------------------------------------------------------- Total Semiconductors & Equipment 57,825,094 ------------------------------------------------------------------------------------------------------------------- SOFTWARE - 6.3% 82,841 Activision Inc., (1) 1,546,641 187,925 Adobe Systems Incorporated, (1) 7,545,189 36,736 Akamai Technologies, Inc., (1) 1,786,839 68,043 Autodesk, Inc., (1) 3,203,464 10,900 Blackboard, Inc., (1) 459,108 255,843 CNET Networks, Inc., (1) 2,095,354 1,417,340 Microsoft Corporation 41,769,010 44,240 NAVTEQ Corporation, (1) 1,873,122 671,102 Oracle Corporation, (1) 13,227,420 1,900 Red Hat, Inc., (1) 42,332 41,500 SAP AG, Sponsored ADR 2,119,405 88,788 VeriSign, Inc., (1) 2,817,243 - -------------------------------------------------------------------------------------------------------------------------------- Total Software 78,485,127 ------------------------------------------------------------------------------------------------------------------- SPECIALTY RETAIL - 2.3% 20,800 Abercrombie & Fitch Co., Class A 1,517,984 56,354 American Eagle Outfitters, Inc. 1,446,044 88,950 Best Buy Co., Inc. 4,151,297 13,700 Cabela's Incorporated, (1) 303,181 69,800 CarMax, Inc., (1) 1,779,900 35,909 Chico's FAS, Inc., (1) 874,025 64,850 Gap, Inc. 1,238,635 191,284 Home Depot, Inc. 7,527,025 126,450 Limited Brands, Inc. 3,471,053 109,500 Lowe's Companies, Inc. 3,360,555 242,300 Pier 1 Imports, Inc. 2,057,127 106,640 Tuesday Morning Corporation 1,318,070 - -------------------------------------------------------------------------------------------------------------------------------- Total Specialty Retail 29,044,896 -------------------------------------------------------------------------------------------------------------------
25 JSN Nuveen Equity Premium Opportunity Fund (continued) Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE - 0.3% 188,076 New York Community Bancorp, Inc. $ 3,201,054 5,503 Thornburg Mortgage Inc. 144,069 - -------------------------------------------------------------------------------------------------------------------------------- Total Thrifts & Mortgage Finance 3,345,123 ------------------------------------------------------------------------------------------------------------------- TOBACCO - 1.8% 221,400 Altria Group, Inc. 15,528,996 42,914 Loews Corp - Carolina Group 3,315,965 45,400 Reynolds American Inc. 2,960,080 - -------------------------------------------------------------------------------------------------------------------------------- Total Tobacco 21,805,041 ------------------------------------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES - 0.4% 84,500 China Mobile Hong Kong Limited, Sponsored ADR 4,554,544 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (COST $911,660,143) 1,229,032,041 =================================================================================================================== PRINCIPAL AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 3.2% $ 39,759 Repurchase Agreement with Fixed Income Clearing 4.000% 7/02/07 $ 39,759,028 Corporation, dated 6/29/07, repurchase price $39,772,281, collateralized by $33,040,000 U.S. Treasury Bonds, 7.250%, due 8/15/22, value $40,556,600 ========== ------------------------------------------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (COST $39,759,028) 39,759,028 ===================================================================================================================
NOTIONAL EXPIRATION STRIKE CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE - --------------------------------------------------------------------------------------------------------------------------------
PUT OPTIONS - 0.4% 347 NASDAQ 100 Index $ 58,122,500 8/18/07 $ 1,675 $ 131,860 431 NASDAQ 100 Index 73,270,000 8/18/07 1,700 202,570 414 NASDAQ 100 Index 68,310,000 9/22/07 1,650 285,660 422 NASDAQ 100 Index 71,740,000 9/22/07 1,700 432,550 889 S&P 500 Index 117,792,500 7/21/07 1,325 40,005 888 S&P 500 Index 119,880,000 7/21/07 1,350 75,480 867 S&P 500 Index 117,045,000 8/18/07 1,350 416,160 843 S&P 500 Index 115,912,500 8/18/07 1,375 547,950 873 S&P 500 Index 115,672,500 9/22/07 1,325 611,100 843 S&P 500 Index 113,805,000 9/22/07 1,350 750,270 798 S&P 500 Index 109,725,000 9/22/07 1,375 909,720 - -------------------------------------------------------------------------------------------------------------------------------- 7,615 TOTAL PUT OPTIONS (COST $5,984,548) 1,081,275,000 4,403,325 ================================================================================================================================ TOTAL INVESTMENTS (COST $957,403,719) - 102.8% 1,273,194,394 ===================================================================================================================
26 NOTIONAL EXPIRATION STRIKE CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE - -------------------------------------------------------------------------------------------------------------------------------- CALL OPTIONS WRITTEN - (2.8)% (3) (3,230) Mini-NDX 100 Index $ (60,562,500) 7/21/07 $ 187.5 $ (2,519,400) (230) Mini-NDX 100 Index (4,370,000) 7/21/07 190.0 (133,400) (1,830) Mini-NDX 100 Index (34,770,000) 9/22/07 190.0 (1,830,000) (1,785) Mini-NDX 100 Index (34,361,250) 9/22/07 192.5 (1,481,550) (182) NASDAQ 100 Index (33,670,000) 7/21/07 1,850 (1,824,550) (34) NASDAQ 100 Index (6,375,000) 7/21/07 1,875 (264,010) (163) NASDAQ 100 Index (30,970,000) 7/21/07 1,900 (938,065) (354) NASDAQ 100 Index (67,260,000) 8/18/07 1,900 (2,794,830) (173) NASDAQ 100 Index (32,870,000) 9/22/07 1,900 (1,735,190) (1,476) S&P 500 Index (217,710,000) 7/21/07 1,475 (6,250,860) (1,114) S&P 500 Index (171,600,000) 7/21/07 1,500 (2,785,640) (760) S&P 500 Index (115,900,000) 7/21/07 1,525 (828,400) (753) S&P 500 Index (111,067,000) 8/18/07 1,475 (4,243,155) (743) S&P 500 Index (111,450,000) 8/18/07 1,500 (2,901,415) (422) S&P 500 Index (64,335,000) 8/18/07 1,525 (1,036,010) (703) S&P 500 Index (105,450,000) 9/22/07 1,500 (3,673,175) - -------------------------------------------------------------------------------------------------------------------------------- (13,982) TOTAL CALL OPTIONS WRITTEN (PREMIUMS RECEIVED (1,202,741,250) (35,239,650) $41,439,788) ================================================================================================================================ OTHER ASSETS LESS LIABILITIES - 0.0% 810,241 =================================================================================================================== NET ASSETS - 100% $ 1,238,764,985 ===================================================================================================================
(1) Non-income producing. (2) For disclosure purposes, Notional Amount is calculated by multiplying the number of Contracts by the Strike Price by 100. (3) The Fund may designate up to 100% of its Common Stock investments to cover outstanding Call Options Written. ADR American Depositary Receipt.
See accompanying notes to financial statements. 27 JLA Nuveen Equity Premium Advantage Fund Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - ----------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS - 98.6% AEROSPACE & DEFENSE - 1.5% 26,400 Boeing Company $ 2,538,624 41,300 Honeywell International Inc. 2,324,364 30,100 United Technologies Corporation 2,134,993 - ----------------------------------------------------------------------------------------------------------------------------- Total Aerospace & Defense 6,997,981 ---------------------------------------------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS - 0.5% 33,410 United Parcel Service, Inc., Class B 2,438,930 - ----------------------------------------------------------------------------------------------------------------------------- AIRLINES - 0.0% 12,313 Southwest Airlines Co. 183,587 - ----------------------------------------------------------------------------------------------------------------------------- AUTO COMPONENTS -- 0.5% 41,333 American Axle and Manufacturing Holdings Inc. 1,224,283 49,461 Cooper Tire & Rubber 1,366,113 - ----------------------------------------------------------------------------------------------------------------------------- Total Auto Components 2,590,396 ---------------------------------------------------------------------------------------------------------------- AUTOMOBILES - 0.5% 87,695 Ford Motor Company 826,087 19,783 General Motors Corporation 747,797 14,900 Harley-Davidson, Inc. 888,189 - ----------------------------------------------------------------------------------------------------------------------------- Total Automobiles 2,462,073 ---------------------------------------------------------------------------------------------------------------- BEVERAGES - 0.8% 39,700 Coca-Cola Company 2,076,707 28,800 PepsiCo, Inc. 1,867,680 - ----------------------------------------------------------------------------------------------------------------------------- Total Beverages 3,944,387 ---------------------------------------------------------------------------------------------------------------- BIOTECHNOLOGY - 3.4% 63,255 Amgen Inc., (1) 3,497,369 67,600 Biogen Idec Inc., (1) 3,616,600 12,500 Cephalon, Inc., (1) 1,004,875 31,099 Genzyme Corporation, (1) 2,002,776 158,920 Gilead Sciences, Inc., (1) 6,161,328 3,000 Sepracor Inc., (1) 123,060 - ----------------------------------------------------------------------------------------------------------------------------- Total Biotechnology 16,406,008 ---------------------------------------------------------------------------------------------------------------- BUILDING PRODUCTS - 0.1% 22,301 Masco Corporation 634,909 - ----------------------------------------------------------------------------------------------------------------------------- CAPITAL MARKETS - 2.9% 23,800 Bank of New York Company, Inc. 986,272 72,720 Charles Schwab Corporation 1,492,214 9,100 Goldman Sachs Group, Inc. 1,972,425 89,700 JPMorgan Chase & Co. 4,345,965 12,825 Merrill Lynch & Co., Inc. 1,071,914 35,700 Morgan Stanley 2,994,516 51,000 Waddell & Reed Financial, Inc., Class A 1,326,510 - ----------------------------------------------------------------------------------------------------------------------------- Total Capital Markets 14,189,816 ---------------------------------------------------------------------------------------------------------------- CHEMICALS - 0.6% 12,674 Dow Chemical Company 560,444 44,813 E.I. Du Pont de Nemours and Company 2,278,293 21,574 NL Industries Inc. 216,171 - ----------------------------------------------------------------------------------------------------------------------------- Total Chemicals 3,054,908 ---------------------------------------------------------------------------------------------------------------- COMMERCIAL BANKS - 3.4% 108,993 Bank of America Corporation 5,328,668 25,052 Commerce Bancorp, Inc. 926,673 19,882 Fifth Third Bancorp 790,707 38,433 FirstMerit Corporation 804,403 73,513 Lloyds TSB Group PLC, Sponsored ADR 3,287,501
28
SHARES DESCRIPTION VALUE - ----------------------------------------------------------------------------------------------------------------------------- COMMERCIAL BANKS (continued) 63,800 U.S. Bancorp $ 2,102,210 34,900 Wachovia Corporation 1,788,625 40,776 Wells Fargo & Company 1,434,092 - ----------------------------------------------------------------------------------------------------------------------------- Total Commercial Banks 16,462,879 ---------------------------------------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES - 2.8% 32,440 Automatic Data Processing, Inc. 1,572,367 23,755 CheckFree Corp., (1) 954,951 4,940 Corporate Executive Board Company 320,655 32,672 Deluxe Corporation 1,326,810 7,816 Global Payments Inc. 309,904 11,893 ITT Educational Services, Inc., (1) 1,396,000 20,400 Manpower Inc. 1,881,696 61,190 Paychex, Inc. 2,393,753 29,775 Pitney Bowes Inc. 1,394,066 24,714 R.R. Donnelley & Sons Company 1,075,306 42,188 ServiceMaster Company 652,226 - ----------------------------------------------------------------------------------------------------------------------------- Total Commercial Services & Supplies 13,277,734 ---------------------------------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT - 7.8% 459,280 Cisco Systems, Inc., (1) 12,790,948 33,878 Comverse Technology, Inc., (1) 706,356 59,568 Corning Incorporated, (1) 1,521,962 29,400 Harris Corporation 1,603,770 13,075 JDS Uniphase Corporation, (1) 175,597 15,830 Motorola, Inc. 280,191 358,500 QUALCOMM Inc. 15,555,315 24,399 Research In Motion Limited, (1) 4,879,556 - ----------------------------------------------------------------------------------------------------------------------------- Total Communications Equipment 37,513,695 ---------------------------------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS - 8.5% 218,498 Apple, Inc., (1) 26,665,496 100,200 Hewlett-Packard Company 4,470,924 43,935 International Business Machines Corporation (IBM) 4,624,159 23,041 McAfee Inc., (1) 811,043 7,245 NCR Corporation, (1) 380,652 58,920 Network Appliance, Inc., (1) 1,720,464 21,943 SanDisk Corporation, (1) 1,073,890 242,000 Sun Microsystems Inc., (1) 1,272,920 - ----------------------------------------------------------------------------------------------------------------------------- Total Computers & Peripherals 41,019,548 ---------------------------------------------------------------------------------------------------------------- CONSUMER FINANCE - 0.2% 18,900 American Express Company 1,156,302 ---------------------------------------------------------------------------------------------------------------- CONTAINERS & PACKAGING - 0.5% 43,903 Packaging Corp. of America 1,111,185 24,900 Sonoco Products Company 1,065,969 - ----------------------------------------------------------------------------------------------------------------------------- Total Containers & Packaging 2,177,154 ---------------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES - 1.9% 4,400 Chicago Mercantile Exchange Holdings Inc., Class A 2,351,184 108,876 Citigroup Inc. 5,584,250 20,000 Moody's Corporation 1,244,000 - ----------------------------------------------------------------------------------------------------------------------------- Total Diversified Financial Services 9,179,434 ---------------------------------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES - 2.6% 220,695 AT&T Inc. 9,158,843 25,414 Chunghwa Telecom Co., Ltd., Sponsored ADR 479,308 72,955 Citizens Communications Company 1,114,023 11,127 France Telecom SA 305,770 31,090 Verizon Communications Inc. 1,279,975 - ----------------------------------------------------------------------------------------------------------------------------- Total Diversified Telecommunication Services 12,337,919 ---------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES - 0.6% 21,600 Exelon Corporation 1,568,160 30,400 OGE Energy Corp. 1,114,160 - ----------------------------------------------------------------------------------------------------------------------------- Total Electric Utilities 2,682,320 ----------------------------------------------------------------------------------------------------------------
29 JLA Nuveen Equity Premium Advantage Fund (continued) Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - ----------------------------------------------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT - 1.2% 26,000 Cooper Industries, Ltd., Class A $ 1,484,340 59,800 Emerson Electric Co. 2,798,640 13,500 Hubbell Incorporated, Class B 731,970 13,700 Rockwell Automation, Inc. 951,328 - ----------------------------------------------------------------------------------------------------------------------------- Total Electrical Equipment 5,966,278 ---------------------------------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.0% 17,182 Agilent Technologies, Inc., (1) 660,476 26,404 Amphenol Corporation, Class A 941,303 13,259 Diebold Inc. 692,120 48,857 Gentex Corporation 961,994 18,868 Roper Industries Inc. 1,077,363 177,201 Solectron Corporation, (1) 652,100 - ----------------------------------------------------------------------------------------------------------------------------- Total Electronic Equipment & Instruments 4,985,356 ---------------------------------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES - 1.4% 15,200 Cooper Cameron Corporation, (1) 1,086,344 19,059 Diamond Offshore Drilling, Inc. 1,935,632 52,800 Halliburton Company 1,821,600 34,200 Smith International, Inc. 2,005,488 - ----------------------------------------------------------------------------------------------------------------------------- Total Energy Equipment & Services 6,849,064 ---------------------------------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING - 1.1% 43,162 CVS Caremark Corporation 1,573,255 10,816 Kroger Co. 304,254 23,562 SUPERVALU INC. 1,091,392 51,700 Wal-Mart Stores, Inc. 2,487,287 - ----------------------------------------------------------------------------------------------------------------------------- Total Food & Staples Retailing 5,456,188 ---------------------------------------------------------------------------------------------------------------- FOOD PRODUCTS - 1.0% 9,285 Chiquita Brands International Inc. 176,044 47,193 Kraft Foods Inc. 1,663,553 27,800 Monsanto Company 1,877,612 64,658 Sara Lee Corporation 1,125,049 - ----------------------------------------------------------------------------------------------------------------------------- Total Food Products 4,842,258 ---------------------------------------------------------------------------------------------------------------- GAS UTILITIES - 0.6% 47,295 Nicor Inc. 2,029,901 26,700 Piedmont Natural Gas Company 658,155 - ----------------------------------------------------------------------------------------------------------------------------- Total Gas Utilities 2,688,056 ---------------------------------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES - 1.2% 33,800 Applera Corporation-Applied Biosystems Group 1,032,252 34,700 Baxter International Inc. 1,954,998 19,890 Boston Scientific Corporation, (1) 305,113 3,702 Intuitive Surgical, Inc., (1) 513,727 6,899 Medtronic, Inc. 357,782 19,174 St. Jude Medical Inc., (1) 795,529 12,487 Zimmer Holdings, Inc., (1) 1,060,021 - ----------------------------------------------------------------------------------------------------------------------------- Total Health Care Equipment & Supplies 6,019,422 ---------------------------------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES - 0.9% 11,349 Medco Health Solutions, Inc., (1) 885,109 26,237 UnitedHealth Group Incorporated 1,341,760 11,200 Universal Health Services, Inc., Class B 688,800 16,293 Wellpoint Inc., (1) 1,300,670 - ----------------------------------------------------------------------------------------------------------------------------- Total Health Care Providers & Services 4,216,339 ---------------------------------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE - 2.3% 18,429 Carnival Corporation 898,782 9,154 Harrah's Entertainment, Inc. 780,470 26,904 International Game Technology 1,068,089 45,500 McDonald's Corporation 2,309,580 137,420 Starbucks Corporation, (1) 3,605,901 15,700 Starwood Hotels & Resorts Worldwide, Inc. 1,052,999
30
SHARES DESCRIPTION VALUE - ----------------------------------------------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE (continued) 27,491 Tim Hortons Inc. $ 845,348 20,300 Wendy's International, Inc. 746,025 - ----------------------------------------------------------------------------------------------------------------------------- Total Hotels, Restaurants & Leisure 11,307,194 ---------------------------------------------------------------------------------------------------------------- HOUSEHOLD DURABLES - 0.6% 24,388 Leggett and Platt Inc. 537,755 38,500 Newell Rubbermaid Inc. 1,133,055 12,700 Whirlpool Corporation 1,412,240 - ----------------------------------------------------------------------------------------------------------------------------- Total Household Durables 3,083,050 ---------------------------------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS - 1.0% 76,495 Procter & Gamble Company 4,680,729 - ----------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES - 2.1% 13,364 3M Co. 1,159,862 14,536 American Standard Companies Inc. 857,333 158,640 General Electric Company 6,072,739 17,994 Genuine Parts Company 892,502 37,342 Tyco International Ltd. 1,261,786 - ----------------------------------------------------------------------------------------------------------------------------- Total Industrial Conglomerates 10,244,222 ---------------------------------------------------------------------------------------------------------------- INSURANCE - 2.0% 15,228 AFLAC Incorporated 782,719 64,270 American International Group, Inc. 4,500,828 34,260 Fidelity National Title Group Inc., Class A 811,962 30,179 Marsh & McLennan Companies, Inc. 931,928 14,360 Prudential Financial, Inc. 1,396,223 18,473 Travelers Companies, Inc. 988,306 - ----------------------------------------------------------------------------------------------------------------------------- Total Insurance 9,411,966 ---------------------------------------------------------------------------------------------------------------- INTERNET & CATALOG RETAIL - 1.1% 52,639 Amazon.com, Inc., (1) 3,601,034 52,220 IAC/InterActiveCorp., (1) 1,807,334 - ----------------------------------------------------------------------------------------------------------------------------- Total Internet & Catalog Retail 5,408,368 ---------------------------------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES - 3.7% 44,756 Earthlink, Inc., (1) 334,327 93,739 eBay Inc., (1) 3,016,521 25,023 Google Inc., Class A, (1) 13,096,538 7,385 NIC, Incorporated 50,513 43,727 United Online, Inc. 721,058 27,105 Yahoo! Inc., (1) 735,359 - ----------------------------------------------------------------------------------------------------------------------------- Total Internet Software & Services 17,954,316 ---------------------------------------------------------------------------------------------------------------- IT SERVICES - 0.7% 41,600 Electronic Data Systems Corporation 1,153,568 17,573 Fidelity National Information Services 953,862 17,800 First Data Corporation 581,526 13,150 Infosys Technologies Limited, Sponsored ADR 662,497 - ----------------------------------------------------------------------------------------------------------------------------- Total IT Services 3,351,453 ---------------------------------------------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS - 0.1% 26,523 Eastman Kodak Company 738,135 - ----------------------------------------------------------------------------------------------------------------------------- MACHINERY - 1.5% 29,600 Caterpillar Inc. 2,317,680 8,459 Danaher Corporation 638,655 15,700 Eaton Corporation 1,460,100 18,700 Graco Inc. 753,236 21,330 SPX Corporation 1,872,987 - ----------------------------------------------------------------------------------------------------------------------------- Total Machinery 7,042,658 ---------------------------------------------------------------------------------------------------------------- MEDIA - 3.3% 102,787 Citadel Broadcasting Corporation 662,976 32,300 Clear Channel Communications, Inc. 1,221,586 233,522 Comcast Corporation, Special Class A, (1) 6,529,275 1,638 Idearc Inc. 57,871 20,333 Monster Worldwide Inc., (1) 835,686
31 JLA Nuveen Equity Premium Advantage Fund (continued) Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - ----------------------------------------------------------------------------------------------------------------------------- MEDIA (continued) 36,179 New York Times, Class A $ 918,947 62,500 News Corporation, Class A 1,325,625 22,800 Omnicom Group Inc. 1,206,576 3,757 RCN Corporation, (1) 70,594 65,946 Regal Entertainment Group, Class A 1,446,196 36,300 Walt Disney Company 1,239,282 62,910 Westwood One, Inc., (1) 452,323 - ----------------------------------------------------------------------------------------------------------------------------- Total Media 15,966,937 ---------------------------------------------------------------------------------------------------------------- METALS & MINING - 0.9% 56,000 Companhia Siderurgica Nacional S.A., Sponsored ADR 2,896,320 2,736 Freeport-McMoRan Copper & Gold, Inc. 226,596 14,778 Southern Copper Corporation 1,392,974 - ----------------------------------------------------------------------------------------------------------------------------- Total Metals & Mining 4,515,890 ---------------------------------------------------------------------------------------------------------------- MULTILINE RETAIL - 1.0% 10,616 Dollar General Corporation 232,703 23,653 Federated Department Stores, Inc. 940,916 17,000 J.C. Penney Company, Inc. 1,230,460 12,639 Kohl's Corporation, (1) 897,748 8,597 Sears Holding Corporation, (1) 1,457,192 - ----------------------------------------------------------------------------------------------------------------------------- Total Multiline Retail 4,759,019 ---------------------------------------------------------------------------------------------------------------- MULTI-UTILITIES - 0.4% 61,600 Duke Energy Corporation 1,127,280 15,502 Integrys Energy Group, Inc. 786,416 26 National Grid PLC, Sponsored ADR 1,918 - ----------------------------------------------------------------------------------------------------------------------------- Total Multi-Utilities 1,915,614 ---------------------------------------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS - 4.3% 70,620 Chevron Corporation 5,949,029 28,900 ConocoPhillips 2,268,650 139,529 Exxon Mobil Corporation 11,703,693 16,092 Norsk Hydro ASA 615,841 - ----------------------------------------------------------------------------------------------------------------------------- Total Oil, Gas & Consumable Fuels 20,537,213 ---------------------------------------------------------------------------------------------------------------- PAPER & FOREST PRODUCTS - 0.1% 6,887 Bowater Incorporated 171,831 23,723 International Paper Company 926,383 - ----------------------------------------------------------------------------------------------------------------------------- Total Paper & Forest Products 1,098,214 ---------------------------------------------------------------------------------------------------------------- PHARMACEUTICALS - 5.3% 35,730 Abbott Laboratories 1,913,342 77,186 Bristol-Myers Squibb Company 2,435,990 58,800 Celgene Corporation, (1) 3,371,004 29,208 Eli Lilly and Company 1,632,143 9,155 GlaxoSmithKline PLC, ADR 479,447 42,743 Johnson & Johnson 2,633,824 99,822 Merck & Co. Inc. 4,971,136 182,940 Pfizer Inc. 4,677,776 33,686 Schering-Plough Corporation 1,025,402 39,006 Wyeth 2,236,604 - ----------------------------------------------------------------------------------------------------------------------------- Total Pharmaceuticals 25,376,668 ---------------------------------------------------------------------------------------------------------------- REAL ESTATE - 0.9% 30,269 Healthcare Realty Trust, Inc. 840,873 9,611 Host Hotels & Resorts Inc. 222,206 38,339 Lexington Corporate Properties Trust 797,451 51,777 Nationwide Health Properties, Inc. 1,408,334 41,422 Senior Housing Properties Trust 842,938 - ----------------------------------------------------------------------------------------------------------------------------- Total Real Estate 4,111,802 ---------------------------------------------------------------------------------------------------------------- ROAD & RAIL - 0.3% 17,500 Burlington Northern Santa Fe Corporation 1,489,950 ---------------------------------------------------------------------------------------------------------------- SEMICONDUCTORS & EQUIPMENT - 6.1% 54,763 Altera Corporation 1,211,905 14,165 Analog Devices, Inc. 533,171
32
SHARES DESCRIPTION VALUE - ----------------------------------------------------------------------------------------------------------------------------- SEMICONDUCTORS & EQUIPMENT (continued) 109,780 Applied Materials, Inc. $ 2,181,329 66,600 Broadcom Corporation, Class A, (1) 1,948,050 18,900 Cymer, Inc., (1) 759,780 47,717 Cypress Semiconductor Corporation, (1) 1,111,329 39,437 Fairchild Semiconductor International Inc., Class A, (1) 761,923 46,242 Integrated Device Technology, Inc., (1) 706,115 5,434 International Rectifier Corporation, (1) 202,471 20,531 Intersil Holding Corporation, Class A 645,905 20,150 KLA-Tencor Corporation 1,107,243 70,275 Linear Technology Corporation 2,542,550 96,703 LSI Logic Corporation, (1) 726,240 12,210 Marvell Technology Group Ltd., (1) 222,344 80,150 Maxim Integrated Products, Inc. 2,677,812 73,000 Micron Technology, Inc., (1) 914,690 52,100 National Semiconductor Corporation 1,472,867 27,401 Novellus Systems, Inc., (1) 777,366 56,690 NVIDIA Corporation, (1) 2,341,864 21,817 PMC-Sierra, Inc., (1) 168,645 110,442 Taiwan Semiconductor Manufacturing Company Ltd., Sponsored ADR 1,229,223 13,849 Tessera Technologies Inc., (1) 561,577 79,714 Texas Instruments Incorporated 2,999,638 33,502 Varian Semiconductor Equipment Associate, (1) 1,342,090 2,103 Verigy Limited, (1) 60,167 - ----------------------------------------------------------------------------------------------------------------------------- Total Semiconductors & Equipment 29,206,294 ---------------------------------------------------------------------------------------------------------------- SOFTWARE - 9.5% 60,364 Activision Inc., (1) 1,126,996 91,430 Adobe Systems Incorporated, (1) 3,670,915 28,460 Akamai Technologies, Inc., (1) 1,384,294 27,918 Autodesk, Inc., (1) 1,314,379 61,885 BEA Systems, Inc., (1) 847,206 27,633 CA Inc. 713,760 74,410 Cadence Design Systems, Inc., (1) 1,634,044 62,757 CNET Networks, Inc., (1) 513,980 741,380 Microsoft Corporation 21,848,469 8,453 NAVTEQ Corporation, (1) 357,900 490,178 Oracle Corporation, (1) 9,661,408 8,038 SAP AG, Sponsored ADR 410,501 38,088 Satyam Computer Services Limited, ADR 943,059 40,834 VeriSign, Inc., (1) 1,295,663 - ----------------------------------------------------------------------------------------------------------------------------- Total Software 45,722,574 ---------------------------------------------------------------------------------------------------------------- SPECIALTY RETAIL - 1.9% 28,650 Best Buy Co., Inc. 1,337,096 50,492 Gap, Inc. 964,397 44,771 Home Depot, Inc. 1,761,739 40,900 Limited Brands, Inc. 1,122,705 30,400 Lowe's Companies, Inc. 932,976 53,164 Pier 1 Imports, Inc. 451,362 6,115 RadioShack Corporation 202,651 28,938 TJX Companies, Inc. 795,795 43,412 Tuesday Morning Corporation 536,572 37,616 Urban Outfitters, Inc., (1) 903,912 - ----------------------------------------------------------------------------------------------------------------------------- Total Specialty Retail 9,009,205 ---------------------------------------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE - 0.1% 4,769 Federal National Mortgage Association 311,561 - ----------------------------------------------------------------------------------------------------------------------------- TOBACCO - 1.1% 68,196 Altria Group, Inc. 4,783,267 12,882 Vector Group Ltd. 290,231 - ----------------------------------------------------------------------------------------------------------------------------- Total Tobacco 5,073,498 ----------------------------------------------------------------------------------------------------------------
33 JLA Nuveen Equity Premium Advantage Fund (continued) Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - ----------------------------------------------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES - 0.8% 46,400 China Mobile Hong Kong Limited, Sponsored ADR $ 2,500,960 5,800 iPCS Inc. 196,446 36,448 Vodafone Group PLC, Sponsored ADR 1,225,746 - ----------------------------------------------------------------------------------------------------------------------------- Total Wireless Telecommunication Services 3,923,152 ---------------------------------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (COST $343,009,368) 475,972,623 ================================================================================================================ PRINCIPAL AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ------------------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 3.9% $ 18,964 Repurchase Agreement with Fixed Income Clearing 4.000% 7/02/07 $ 18,964,322 Corporation, dated 6/29/07, repurchase price $18,970,643, collateralized by $15,760,000 U.S. Treasury Bonds, 7.250%, due 8/15/22, value $19,345,400 ========== ---------------------------------------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (COST $18,964,322) 18,964,322 ================================================================================================================ NOTIONAL EXPIRATION STRIKE CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE - -------------------------------------------------------------------------------------------------------------------------------- PUT OPTIONS - 0.4% 287 NASDAQ 100 Index $ 48,072,500 8/18/07 $ 1,675 $ 109,060 326 NASDAQ 100 Index 55,420,000 8/18/07 1,700 153,220 308 NASDAQ 100 Index 50,820,000 9/22/07 1,650 212,520 318 NASDAQ 100 Index 54,060,000 9/22/07 1,700 325,950 217 S&P 500 Index 28,752,500 7/21/07 1,325 9,765 239 S&P 500 Index 32,265,000 7/21/07 1,350 20,315 224 S&P 500 Index 30,240,000 8/18/07 1,350 107,520 224 S&P 500 Index 30,800,000 8/18/07 1,375 145,600 236 S&P 500 Index 31,270,000 9/22/07 1,325 165,200 225 S&P 500 Index 30,375,000 9/22/07 1,350 200,250 199 S&P 500 Index 27,362,500 9/22/07 1,375 226,860 - -------------------------------------------------------------------------------------------------------------------------------- 2,803 TOTAL PUT OPTIONS (COST $2,238,728) 419,437,500 1,676,260 ================================================================================================================================ TOTAL INVESTMENTS (COST $364,212,418) - 102.9% 496,613,205 =================================================================================================================
NOTIONAL EXPIRATION STRIKE CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE - -------------------------------------------------------------------------------------------------------------------------------- CALL OPTIONS WRITTEN - (3.3)% (3) (230) Mini-NDX 100 Index $ (4,255,000) 7/21/07 $185.0 $ (230,000) (1,460) Mini-NDX 100 Index (27,375,000) 7/21/07 187.5 (1,138,800) (780) Mini-NDX 100 Index (14,820,000) 7/21/07 190.0 (452,400) (200) Mini-NDX 100 Index (3,800,000) 8/18/07 190.0 (158,000) (460) Mini-NDX 100 Index (8,740,000) 9/22/07 190.0 (460,000) (1,050) Mini-NDX 100 Index (20,212,500) 9/22/07 192.5 (871,500) (143) NASDAQ 100 Index (26,455,000) 7/21/07 1,850 (1,433,575) (128) NASDAQ 100 Index (24,000,000) 7/21/07 1,875 (993,920) (52) NASDAQ 100 Index (9,880,000) 7/21/07 1,900 (299,260) (263) NASDAQ 100 Index (49,970,000) 8/18/07 1,900 (2,076,385) (235) NASDAQ 100 Index (44,650,000) 9/22/07 1,900 (2,357,050) (381) S&P 500 Index (56,197,500) 7/21/07 1,475 (1,613,535) (303) S&P 500 Index (45,450,000) 7/21/07 1,500 (737,805) (200) S&P 500 Index (30,500,000) 7/21/07 1,525 (218,000) (215) S&P 500 Index (31,712,500) 8/18/07 1,475 (1,211,525) (181) S&P 500 Index (27,150,000) 8/18/07 1,500 (706,805) (100) S&P 500 Index (15,250,000) 8/18/07 1,525 (245,500) (184) S&P 500 Index (27,600,000) 9/22/07 1,500 (961,400) - -------------------------------------------------------------------------------------------------------------------------------- (6,565) TOTAL CALL OPTIONS WRITTEN (PREMIUMS RECEIVED (468,017,500) (16,165,460) $16,821,998) ================================================================================================================================ OTHER ASSETS LESS LIABILITIES - 0.4% 2,099,161 =================================================================================================================== NET ASSETS - 100% $ 482,546,906 ===================================================================================================================
(1) Non-income producing. (2) For disclosure purposes, Notional Amount is calculated by multiplying the number of Contracts by the Strike Price by 100. (3) The Fund may designate up to 100% of its Common Stock investments to cover outstanding Call Options Written. ADR American Depositary Receipt.
See accompanying notes to financial statements. 34 JPG Nuveen Equity Premium and Growth Fund Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS - 99.0% AEROSPACE & DEFENSE - 1.8% 20,500 Boeing Company $ 1,971,280 4,500 Goodrich Corporation 268,020 33,500 Honeywell International Inc. 1,885,380 23,900 United Technologies Corporation 1,695,227 - -------------------------------------------------------------------------------------------------------------------------------- Total Aerospace & Defense 5,819,907 ------------------------------------------------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS - 0.6% 28,200 United Parcel Service, Inc., Class B 2,058,600 - -------------------------------------------------------------------------------------------------------------------------------- AIRLINES - 0.1% 5,400 AMR Corporation-DEL, (1) 142,290 9,600 Continental Airlines, Inc., (1) 325,152 - -------------------------------------------------------------------------------------------------------------------------------- Total Airlines 467,442 ------------------------------------------------------------------------------------------------------------------- AUTO COMPONENTS - 0.2% 24,800 American Axle and Manufacturing Holdings Inc. 734,576 9,310 Cooper Tire & Rubber 257,142 - -------------------------------------------------------------------------------------------------------------------------------- Total Auto Components 991,718 ------------------------------------------------------------------------------------------------------------------- AUTOMOBILES - 0.4% 35,600 General Motors Corporation 1,345,680 2,500 Harley-Davidson, Inc. 149,025 - -------------------------------------------------------------------------------------------------------------------------------- Total Automobiles 1,494,705 ------------------------------------------------------------------------------------------------------------------- BEVERAGES - 0.6% 35,500 Coca-Cola Company 1,857,005 - -------------------------------------------------------------------------------------------------------------------------------- CAPITAL MARKETS - 3.2% 35,000 Charles Schwab Corporation 718,200 8,500 Goldman Sachs Group, Inc. 1,842,375 104,500 JPMorgan Chase & Co. 5,063,025 31,000 Morgan Stanley 2,600,280 18,800 Waddell & Reed Financial, Inc., Class A 488,988 - -------------------------------------------------------------------------------------------------------------------------------- Total Capital Markets 10,712,868 ------------------------------------------------------------------------------------------------------------------- CHEMICALS - 1.8% 1,000 Chemtura Corporation 11,110 51,000 Dow Chemical Company 2,255,220 38,955 E.I. Du Pont de Nemours and Company 1,980,472 2,700 Eastman Chemical Company 173,691 3,000 Lyondell Chemical Company 111,360 14,000 Olin Corporation 294,000 13,000 PPG Industries, Inc. 989,430 8,000 RPM International, Inc. 184,880 - -------------------------------------------------------------------------------------------------------------------------------- Total Chemicals 6,000,163 ------------------------------------------------------------------------------------------------------------------- COMMERCIAL BANKS - 7.2% 167,515 Bank of America Corporation 8,189,808 8,000 Comerica Incorporated 475,760 9,000 Federated Investors Inc. 344,970 48,000 FirstMerit Corporation 1,004,640 27,720 HSBC Holdings PLC, Sponsored ADR 2,543,864 34,000 Lloyds TSB Group PLC, Sponsored ADR 1,520,480 18,800 National City Corporation 626,416 15,493 Regions Financial Corporation 512,818 91,383 U.S. Bancorp 3,011,070 32,118 Wachovia Corporation 1,646,048
35 JPG Nuveen Equity Premium and Growth Fund (continued) Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- COMMERCIAL BANKS (continued) 9,600 Washington Mutual, Inc. $ 409,344 98,100 Wells Fargo & Company 3,450,177 - -------------------------------------------------------------------------------------------------------------------------------- Total Commercial Banks 23,735,395 ------------------------------------------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES - 1.4% 23,000 Automatic Data Processing, Inc. 1,114,810 1,400 Avery Dennison Corporation 93,072 46,100 Deluxe Corporation 1,872,121 1,000 Robert Half International Inc. 36,500 86,500 ServiceMaster Company 1,337,290 6,000 Standard Register Company 68,400 - -------------------------------------------------------------------------------------------------------------------------------- Total Commercial Services & Supplies 4,522,193 ------------------------------------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT - 1.3% 11,321 Alcatel SA 158,494 119,800 Cisco Systems, Inc., (1) 3,336,430 21,452 Corning Incorporated, (1) 548,099 1,000 Plantronics Inc. 26,220 3,291 QUALCOMM Inc. 142,796 - -------------------------------------------------------------------------------------------------------------------------------- Total Communications Equipment 4,212,039 ------------------------------------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS - 2.6% 15,467 Apple, Inc., (1) 1,887,593 12,000 Dell Inc., (1) 342,600 25,000 EMC Corporation, (1) 452,500 65,500 Hewlett-Packard Company 2,922,610 27,500 International Business Machines Corporation 2,894,375 (IBM) - -------------------------------------------------------------------------------------------------------------------------------- Total Computers & Peripherals 8,499,678 ------------------------------------------------------------------------------------------------------------------- CONTAINERS & PACKAGING - 0.1% 21,200 Packaging Corp. of America 536,572 - -------------------------------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES - 3.0% 66,000 Capitalsource Inc. 1,622,940 1,500 Chicago Mercantile Exchange Holdings Inc., Class 801,540 A 140,929 Citigroup Inc. 7,228,248 4,000 Federal Home Loan Mortgage Corporation 242,800 - -------------------------------------------------------------------------------------------------------------------------------- Total Diversified Financial Services 9,895,528 ------------------------------------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES - 4.2% 4,000 Alaska Communications Systems Group Inc. 63,360 139,200 AT&T Inc. 5,776,800 104,800 Citizens Communications Company 1,600,296 3,700 Compania Anonima Nacional Telefonos de Venezuela 36,486 15,600 FairPoint Communications Inc. 276,900 2,000 France Telecom SA 54,960 27,000 Iowa Telecommunications Services, Inc. 613,710 129,500 Verizon Communications Inc. 5,331,515 - -------------------------------------------------------------------------------------------------------------------------------- Total Diversified Telecommunication Services 13,754,027 ------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES - 1.6% 5,400 Ameren Corporation 264,654 26,500 CenterPoint Energy, Inc. 461,100 120,000 Companhia Energetica de Minas Gerais 2,532,000 13,600 Consolidated Edison, Inc. 613,632 6,000 Enel SpA, Sponsored ADR 322,200 14,700 Great Plains Energy Incorporated 428,064 8,882 Progress Energy, Inc. 404,930 3,849 TXU Corp. 259,038 - -------------------------------------------------------------------------------------------------------------------------------- Total Electric Utilities 5,285,618 ------------------------------------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT - 1.0% 5,000 Cooper Industries, Ltd., Class A 285,450 60,000 Emerson Electric Co. 2,808,000
36
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT (continued) 2,000 Hubbell Incorporated, Class B $ 108,440 1,000 Rockwell Automation, Inc. 69,440 - -------------------------------------------------------------------------------------------------------------------------------- Total Electrical Equipment 3,271,330 ------------------------------------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.1% 3,100 MEMC Electronic Materials, (1) 189,472 - -------------------------------------------------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES - 1.9% 12,700 Baker Hughes Incorporated 1,068,451 12,000 Carbo Ceramics Inc. 525,720 2,500 Diamond Offshore Drilling, Inc. 253,900 17,600 Halliburton Company 607,200 2,500 National-Oilwell Varco Inc., (1) 260,600 5,000 Noble Corporation 487,600 8,000 Patterson-UTI Energy, Inc. 209,680 23,514 Schlumberger Limited 1,997,279 2,000 Tidewater Inc. 141,760 7,000 Transocean Inc., (1) 741,860 - -------------------------------------------------------------------------------------------------------------------------------- Total Energy Equipment & Services 6,294,050 ------------------------------------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING - 1.2% 8,500 CVS Caremark Corporation 309,825 29,375 SUPERVALU INC. 1,360,650 38,200 Wal-Mart Stores, Inc. 1,837,802 9,000 Whole Foods Market, Inc. 344,700 - -------------------------------------------------------------------------------------------------------------------------------- Total Food & Staples Retailing 3,852,977 ------------------------------------------------------------------------------------------------------------------- FOOD PRODUCTS - 0.8% 41,300 ConAgra Foods, Inc. 1,109,318 45,387 Kraft Foods Inc. 1,599,892 - -------------------------------------------------------------------------------------------------------------------------------- Total Food Products 2,709,210 ------------------------------------------------------------------------------------------------------------------- GAS UTILITIES - 1.5% 77,000 KeySpan Corporation 3,232,460 35,390 Nicor Inc. 1,518,939 12,600 Spectra Energy Corporation 327,096 - -------------------------------------------------------------------------------------------------------------------------------- Total Gas Utilities 5,078,495 ------------------------------------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES - 0.5% 2,700 Baxter International Inc. 152,118 29,000 Medtronic, Inc. 1,503,940 - -------------------------------------------------------------------------------------------------------------------------------- Total Health Care Equipment & Supplies 1,656,058 ------------------------------------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES - 0.5% 9,973 Aetna Inc. 492,666 12,000 Health Management Associates Inc. 136,320 21,337 UnitedHealth Group Incorporated 1,091,174 - -------------------------------------------------------------------------------------------------------------------------------- Total Health Care Providers & Services 1,720,160 ------------------------------------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE - 0.9% 4,800 Harrah's Entertainment, Inc. 409,248 5,500 International Game Technology 218,350 31,900 McDonald's Corporation 1,619,244 12,813 Tim Hortons Inc. 394,000 10,200 Wendy's International, Inc. 374,850 - -------------------------------------------------------------------------------------------------------------------------------- Total Hotels, Restaurants & Leisure 3,015,692 ------------------------------------------------------------------------------------------------------------------- HOUSEHOLD DURABLES - 1.4% 5,000 Black & Decker Corporation 441,550 1,000 D.R. Horton, Inc. 19,930 2,200 Furniture Brands International, Inc. 31,240 13,500 Kimball International Inc., Class B 189,135 1,000 La Z Boy Inc. 11,460 55,500 Newell Rubbermaid Inc. 1,633,365 12,000 Snap-on Incorporated 606,120
37 JPG Nuveen Equity Premium and Growth Fund (continued) Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- HOUSEHOLD DURABLES (continued) 13,500 Stanley Works $ 819,450 8,998 Whirlpool Corporation 1,000,578 - -------------------------------------------------------------------------------------------------------------------------------- Total Household Durables 4,752,828 ------------------------------------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS - 2.0% 20,000 Kimberly-Clark Corporation 1,337,800 85,500 Procter & Gamble Company 5,231,745 - -------------------------------------------------------------------------------------------------------------------------------- Total Household Products 6,569,545 ------------------------------------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES - 4.5% 15,600 3M Co. 1,353,924 6,700 American Standard Companies Inc. 395,166 302,676 General Electric Company 11,586,437 23,200 Genuine Parts Company 1,150,720 14,166 Tyco International Ltd. 478,669 - -------------------------------------------------------------------------------------------------------------------------------- Total Industrial Conglomerates 14,964,916 ------------------------------------------------------------------------------------------------------------------- INSURANCE - 4.6% 20,000 Allstate Corporation 1,230,200 38,690 American International Group, Inc. 2,709,461 9,000 Arthur J. Gallagher & Co. 250,920 149,977 Fidelity National Title Group Inc., Class A 3,554,455 74,334 Lincoln National Corporation 5,273,997 13,000 Marsh & McLennan Companies, Inc. 401,440 12,600 Mercury General Corporation 694,386 16,400 Travelers Companies, Inc. 877,400 1,500 Unitrin, Inc. 73,770 - -------------------------------------------------------------------------------------------------------------------------------- Total Insurance 15,066,029 ------------------------------------------------------------------------------------------------------------------- INTERNET & CATALOG RETAIL - 0.2% 14,500 Amazon.com, Inc., (1) 991,945 - -------------------------------------------------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES - 2.0% 43,000 eBay Inc., (1) 1,383,740 6,400 Google Inc., Class A, (1) 3,349,632 104,600 United Online, Inc. 1,724,854 - -------------------------------------------------------------------------------------------------------------------------------- Total Internet Software & Services 6,458,226 ------------------------------------------------------------------------------------------------------------------- IT SERVICES - 0.1% 5,374 Fidelity National Information Services 291,701 - -------------------------------------------------------------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS - 0.5% 5,000 Brunswick Corporation 163,150 2,000 Eastman Kodak Company 55,660 39,200 Mattel, Inc. 991,368 8,000 Polaris Industries Inc. 433,280 - -------------------------------------------------------------------------------------------------------------------------------- Total Leisure Equipment & Products 1,643,458 ------------------------------------------------------------------------------------------------------------------- MACHINERY - 1.7% 25,000 Briggs & Stratton Corporation 789,000 30,000 Caterpillar Inc. 2,349,000 5,100 Deere & Company 615,774 11,000 Illinois Tool Works Inc. 596,090 19,000 Ingersoll Rand Company Limited, Class A 1,041,580 3,000 Pentair, Inc. 115,710 10,500 Volvo AB 208,845 - -------------------------------------------------------------------------------------------------------------------------------- Total Machinery 5,715,999 ------------------------------------------------------------------------------------------------------------------- MEDIA - 2.1% 105,000 Citadel Broadcasting Corporation 677,250 1,500 Clear Channel Communications, Inc. 56,730 17,600 Dow Jones & Company, Inc. 1,011,120 55,700 Entrcom Communications Corporation 1,386,373 39,000 New York Times, Class A 990,600 500 Reed Elsevier NV, Sponsored ADR 18,960
38
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- MEDIA (continued) 76,486 Regal Entertainment Group, Class A $ 1,677,338 99,500 Westwood One, Inc., (1) 715,405 18,500 World Wrestling Entertainment Inc. 295,815 - -------------------------------------------------------------------------------------------------------------------------------- Total Media 6,829,591 ------------------------------------------------------------------------------------------------------------------- METALS & MINING - 2.3% 38,104 Companhia Siderurgica Nacional S.A., Sponsored ADR 1,970,739 763 Freeport-McMoRan Copper & Gold, Inc. 63,192 57,336 Southern Copper Corporation 5,404,491 - -------------------------------------------------------------------------------------------------------------------------------- Total Metals & Mining 7,438,422 ------------------------------------------------------------------------------------------------------------------- MULTILINE RETAIL - 0.7% 18,000 Dollar General Corporation 394,560 19,200 Federated Department Stores, Inc. 763,776 5,500 J.C. Penney Company, Inc. 398,090 12,800 Nordstrom, Inc. 654,336 - -------------------------------------------------------------------------------------------------------------------------------- Total Multiline Retail 2,210,762 ------------------------------------------------------------------------------------------------------------------- MULTI-UTILITIES - 1.5% 1,450 Dominion Resources, Inc. 125,150 76,000 Duke Energy Corporation 1,390,800 58,575 Integrys Energy Group, Inc. 2,971,510 10,500 ONEOK, Inc. 529,305 - -------------------------------------------------------------------------------------------------------------------------------- Total Multi-Utilities 5,016,765 ------------------------------------------------------------------------------------------------------------------- OIL, GAS & CONSUMABLE FUELS - 9.4% 68,900 Chevron Corporation 5,804,136 17,026 ConocoPhillips 1,336,541 185,000 Exxon Mobil Corporation 15,517,801 3,600 Frontline Limited 165,060 12,800 General Maritime Corporation, (1) 342,784 15,600 Marathon Oil Corporation 935,376 141,559 Norsk Hydro ASA 5,417,463 24,500 Occidental Petroleum Corporation 1,418,060 385 Ship Financial International Limited 11,427 3,000 YPF Sociedad Anonima 135,600 - -------------------------------------------------------------------------------------------------------------------------------- Total Oil, Gas & Consumable Fuels 31,084,248 ------------------------------------------------------------------------------------------------------------------- PAPER & FOREST PRODUCTS - 1.0% 11,000 Bowater Incorporated 274,450 8,500 International Paper Company 331,925 32,400 Weyerhaeuser Company 2,557,332 - -------------------------------------------------------------------------------------------------------------------------------- Total Paper & Forest Products 3,163,707 ------------------------------------------------------------------------------------------------------------------- PERSONAL PRODUCTS - 0.2% 23,000 Avon Products, Inc. 845,250 - -------------------------------------------------------------------------------------------------------------------------------- PHARMACEUTICALS - 9.5% 65,000 Abbott Laboratories 3,480,750 146,264 Bristol-Myers Squibb Company 4,616,092 31,132 Eli Lilly and Company 1,739,656 89,900 Johnson & Johnson 5,539,638 140,500 Merck & Co. Inc. 6,996,900 288,500 Pfizer Inc. 7,376,945 30,500 Wyeth 1,748,870 - -------------------------------------------------------------------------------------------------------------------------------- Total Pharmaceuticals 31,498,851 ------------------------------------------------------------------------------------------------------------------- REAL ESTATE - 2.8% 9,700 American Home Mortgage Investment Corp. (4) 178,286 60,671 Apartment Investment & Management Company, Class A 3,059,032 2,800 Colonial Properties Trust 102,060 57,500 Healthcare Realty Trust, Inc. 1,597,350 47,000 Hospitality Properties Trust 1,950,030 17,500 Lexington Corporate Properties Trust 364,000
39 JPG Nuveen Equity Premium and Growth Fund (continued) Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- REAL ESTATE (continued) 53,300 Nationwide Health Properties, Inc. $ 1,449,760 20,000 Senior Housing Properties Trust 407,000 - -------------------------------------------------------------------------------------------------------------------------------- Total Real Estate 9,107,518 ------------------------------------------------------------------------------------------------------------------- ROAD & RAIL - 0.5% 39,500 CSX Corporation 1,780,660 - -------------------------------------------------------------------------------------------------------------------------------- SEMICONDUCTORS & EQUIPMENT - 3.2% 47,000 Analog Devices, Inc. 1,769,080 11,500 Applied Materials, Inc. 228,505 185,873 Intel Corporation 4,416,342 44,000 Maxim Integrated Products, Inc. 1,470,040 30,600 Microchip Technology Incorporated 1,133,424 13,400 NVIDIA Corporation, (1) 553,554 84,654 Taiwan Semiconductor Manufacturing Company Ltd., Sponsored ADR 942,199 - -------------------------------------------------------------------------------------------------------------------------------- Total Semiconductors & Equipment 10,513,144 ------------------------------------------------------------------------------------------------------------------- SOFTWARE - 3.5% 7,700 Adobe Systems Incorporated, (1) 309,155 25,180 InfoSpace, Inc. 584,428 273,500 Microsoft Corporation 8,060,045 9,000 NAVTEQ Corporation, (1) 381,060 99,976 Oracle Corporation, (1) 1,970,527 3,500 Salesforce.com, Inc., (1) 150,010 - -------------------------------------------------------------------------------------------------------------------------------- Total Software 11,455,225 ------------------------------------------------------------------------------------------------------------------- SPECIALTY RETAIL - 2.3% 6,450 Abercrombie & Fitch Co., Class A 470,721 25,500 American Eagle Outfitters, Inc. 654,330 17,000 Best Buy Co., Inc. 793,390 7,000 Chico's FAS, Inc., (1) 170,380 14,151 Gap, Inc. 270,284 26,987 Home Depot, Inc. 1,061,938 30,700 Limited Brands, Inc. 842,715 24,225 Lowe's Companies, Inc. 743,465 42,000 Pier 1 Imports, Inc. 356,580 12,000 RadioShack Corporation 397,680 7,300 Sherwin-Williams Company 485,231 6,000 Talbots, Inc. 150,180 1,000 Tiffany & Co. 53,060 12,000 TJX Companies, Inc. 330,000 58,000 Tuesday Morning Corporation 716,880 - -------------------------------------------------------------------------------------------------------------------------------- Total Specialty Retail 7,496,834 ------------------------------------------------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS - 0.7% 702 Cherokee Inc. 25,651 20,000 VF Corporation 1,831,600 55,718 Xerium Technologies, Inc. 424,571 - -------------------------------------------------------------------------------------------------------------------------------- Total Textiles, Apparel & Luxury Goods 2,281,822 ------------------------------------------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE - 0.9% 18,900 Federal National Mortgage Association 1,234,737 4,289 IndyMac Bancorp, Inc. 125,110 88,000 New York Community Bancorp, Inc. 1,497,760 - -------------------------------------------------------------------------------------------------------------------------------- Total Thrifts & Mortgage Finance 2,857,607 ------------------------------------------------------------------------------------------------------------------- TOBACCO - 2.3% 65,586 Altria Group, Inc. 4,600,202 3,000 Reynolds American Inc. 195,600 30,000 UST Inc. 1,611,300 47,422 Vector Group Ltd. 1,068,418 - -------------------------------------------------------------------------------------------------------------------------------- Total Tobacco 7,475,520 -------------------------------------------------------------------------------------------------------------------
40
SHARES DESCRIPTION VALUE - -------------------------------------------------------------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS - 0.0% 1,000 W.W. Grainger, Inc. $ 93,050 - -------------------------------------------------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES - 0.6% 22,351 iPCS Inc. 757,028 4,000 SK Telecom Company Limited 109,400 32,000 Vodafone Group PLC, Sponsored ADR 1,076,160 - -------------------------------------------------------------------------------------------------------------------------------- Total Wireless Telecommunication Services 1,942,588 ------------------------------------------------------------------------------------------------------------------- TOTAL COMMON STOCKS (COST $261,807,843) 327,177,113 =================================================================================================================== PRINCIPAL AMOUNT (000) DESCRIPTION COUPON MATURITY VALUE - ---------------------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 2.5% $ 8,248 Repurchase Agreement with Fixed Income Clearing 4.000% 7/02/07 $ 8,248,235 Corporation, dated 6/29/07, repurchase price $8,250,984, collateralized by $6,855,000 U.S. Treasury Bonds, 7.250%, due 8/15/22, value $8,414,513 ========== ------------------------------------------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (COST $8,248,235) 8,248,235 =================================================================================================================== NOTIONAL EXPIRATION STRIKE CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE - ----------------------------------------------------------------------------------------------------------------------------------- PUT OPTIONS - 0.3% 243 S&P 500 Index $ 32,197,500 7/21/07 $1,325 $ 10,935 263 S&P 500 Index 35,505,000 7/21/07 1,350 22,355 257 S&P 500 Index 34,695,000 8/18/07 1,350 123,360 237 S&P 500 Index 32,587,000 8/18/07 1,375 154,050 266 S&P 500 Index 35,245,000 9/22/07 1,325 186,200 237 S&P 500 Index 31,955,000 9/22/07 1,350 210,930 231 S&P 500 Index 31,762,000 9/22/07 1,375 263,340 - ----------------------------------------------------------------------------------------------------------------------------------- 1,734 TOTAL PUT OPTIONS (COST $1,347,058) 233,987,500 971,170 =================================================================================================================================== TOTAL INVESTMENTS (COST $271,403,136) - 101.8% 336,396,518 ====================================================================================================================
NOTIONAL EXPIRATION STRIKE CONTRACTS TYPE AMOUNT (2) DATE PRICE VALUE - -------------------------------------------------------------------------------------------------------------------------------- CALL OPTIONS WRITTEN - (1.9)% (3) (433) S&P 500 Index $ (63,687,500) 7/21/07 $1,475 $ (1,833,755) (319) S&P 500 Index (47,850,000) 7/21/07 1,500 (776,765) (219) S&P 500 Index (33,397,500) 7/21/07 1,525 (238,710) (219) S&P 500 Index (32,302,500) 8/18/07 1,475 (1,234,065) (218) S&P 500 Index (32,700,000) 8/18/07 1,500 (851,290) (117) S&P 500 Index (17,842,500) 8/18/07 1,525 (287,235) (209) S&P 500 Index (31,350,000) 9/22/07 1,500 (1,092,025) - -------------------------------------------------------------------------------------------------------------------------------- (1,734) TOTAL CALL OPTIONS WRITTEN (PREMIUMS RECEIVED (259,310,000) (6,313,845) $8,559,115) ================================================================================================================================ OTHER ASSETS LESS LIABILITIES - 0.1% 343,991 =================================================================================================================== NET ASSETS - 100% $ 330,426,664 ===================================================================================================================
(1) Non-income producing. (2) For disclosure purposes, Notional Amount is calculated by multiplying the number of Contracts by the Strike Price by 100. (3) The Fund may designate up to 100% of its Common Stock investments to cover outstanding Call Options Written. (4) At or subsequent to June 30, 2007, this issue was under the protection of the Federal Bankruptcy Court. ADR American Depositary Receipt.
See accompanying notes to financial statements. 41 Statement of ASSETS & LIABILITIES June 30, 2007 (Unaudited)
EQUITY EQUITY EQUITY EQUITY PREMIUM PREMIUM PREMIUM PREMIUM INCOME OPPORTUNITY ADVANTAGE AND GROWTH (JPZ) (JSN) (JLA) (JPG) - -------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $550,700,998, $957,403,719, $364,212,418 and $271,403,136, respectively) $737,914,311 $1,273,194,394 $496,613,205 $336,396,518 Receivables: Dividends 1,089,860 1,639,613 502,243 607,269 Interest 7,758 8,835 4,214 1,833 Investments sold -- -- 1,981,396 -- Reclaims 296 11,148 2,084 4,253 Other assets 30,200 43,510 17,059 11,137 - -------------------------------------------------------------------------------------------------------------------------------- Total assets 739,042,425 1,274,897,500 499,120,201 337,021,010 - -------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Call options written, at value (premiums received $22,787,880, $41,439,788, $16,821,998 and $8,559,115, respectively) 16,774,080 35,239,650 16,165,460 6,313,845 Accrued expenses: Management fees 343,722 576,694 273,149 236,248 Other 184,235 316,171 134,686 44,253 - -------------------------------------------------------------------------------------------------------------------------------- Total liabilities 17,302,037 36,132,515 16,573,295 6,594,346 - -------------------------------------------------------------------------------------------------------------------------------- Net assets $721,740,388 $1,238,764,985 $482,546,906 $330,426,664 ================================================================================================================================ Shares outstanding 38,682,087 66,537,837 26,021,407 16,536,342 ================================================================================================================================ Net asset value per share outstanding $ 18.66 $ 18.62 $ 18.54 $ 19.98 ================================================================================================================================ NET ASSETS CONSIST OF: - -------------------------------------------------------------------------------------------------------------------------------- Shares, $.01 par value per share $ 386,821 $ 665,378 $ 260,214 $ 165,363 Paid-in surplus 638,807,398 1,104,367,017 436,632,659 298,627,565 Undistributed (Over-distribution of) net investment income (24,240,841) (47,509,767) (20,494,134) (8,892,014) Accumulated net realized gain (loss) from investments and call options written (86,440,103) (140,748,456) (66,909,158) (26,712,902) Net unrealized appreciation (depreciation) of investments and call options written 193,227,113 321,990,813 133,057,325 67,238,652 - -------------------------------------------------------------------------------------------------------------------------------- Net assets $721,740,388 $1,238,764,985 $482,546,906 $330,426,664 ================================================================================================================================ Authorized shares Unlimited Unlimited Unlimited Unlimited ================================================================================================================================
See accompanying notes to financial statements. 42 Statement of OPERATIONS Six months ended June 30, 2007 (Unaudited)
EQUITY EQUITY EQUITY EQUITY PREMIUM PREMIUM PREMIUM PREMIUM INCOME OPPORTUNITY ADVANTAGE AND GROWTH (JPZ) (JSN) (JLA) (JPG) - ------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME Dividends (net of foreign taxes withheld of $0, $32,166, $15,259 and $23,461, respectively) $ 10,101,795 $ 14,003,077 $ 4,283,316 $ 5,628,064 Interest 876,510 1,373,020 602,823 361,487 - ------------------------------------------------------------------------------------------------------------------------------ Total investment income $ 10,978,305 $ 15,376,097 $ 4,886,139 $ 5,989,551 - ------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 3,133,708 5,263,641 2,100,629 1,403,662 Shareholders' servicing agent fees and expenses 86 134 -- 31 Custodian's fees and expenses 58,435 101,615 41,130 28,516 Trustees' fees and expenses 16,030 25,740 10,298 6,581 Professional fees 18,962 28,426 15,602 13,869 Shareholders' reports - printing and mailing expenses 43,865 81,322 26,966 6,901 Stock exchange listing fees 7,135 12,584 4,777 4,777 Investor relations expense 60,538 100,111 38,781 23,396 Other expenses 53,541 124,775 84,003 13,132 - ------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 3,392,300 5,738,348 2,322,186 1,500,865 Custodian fee credit (17,201) (29,724) (9,978) (5,579) Expense reimbursement (1,073,524) (1,827,817) (475,578) -- - ------------------------------------------------------------------------------------------------------------------------------ Net expenses 2,301,575 3,880,807 1,836,630 1,495,286 - ------------------------------------------------------------------------------------------------------------------------------ Net investment income 8,676,730 11,495,290 3,049,509 4,494,265 - ------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments (3,715,359) (13,278,735) (4,856,158) (482,033) Call options written (18,836,836) (19,996,302) (3,730,620) (6,529,482) Change in net unrealized appreciation (depreciation) of: Investments 41,213,458 95,430,336 37,985,530 19,173,632 Call options written 8,084,565 2,389,033 (3,769,037) 2,984,525 - ------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 26,745,828 64,544,332 25,629,715 15,146,642 - ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations $ 35,422,558 $ 76,039,622 $28,679,224 $19,640,907 ==============================================================================================================================
See accompanying notes to financial statements. 43 Statement of CHANGES in NET ASSETS (Unaudited)
EQUITY PREMIUM EQUITY PREMIUM INCOME (JPZ) OPPORTUNITY (JSN) ----------------------------- ---------------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED 6/30/07 12/31/06 6/30/07 12/31/06 - --------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 8,676,730 $ 16,326,681 $ 11,495,290 $ 20,798,722 Net realized gain (loss) from: Investments (3,715,359) (21,102,851) (13,278,735) (39,977,281) Call options written (18,836,836) (15,767,514) (19,996,302) (25,604,162) Change in net unrealized appreciation (depreciation) of: Investments 41,213,458 99,612,007 95,430,336 153,481,781 Call options written 8,084,565 (9,209,912) 2,389,033 (11,574,115) - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 35,422,558 69,858,411 76,039,622 97,124,945 - --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS From and in excess of net investment income (32,917,571) -- (59,005,057) -- From net investment income -- (16,326,681) -- (20,798,722) From accumulated net realized gains -- -- -- -- Tax return of capital -- (49,045,844) -- (96,097,991) - --------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (32,917,571) (65,372,525) (59,005,057) (116,896,713) - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from sale of shares and offering costs adjustments -- (4,982) -- 256,067 Net proceeds from shares issued to shareholders due to reinvestment of distributions 3,555,475 3,149,525 7,009,590 8,701,885 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from capital share transactions 3,555,475 3,144,543 7,009,590 8,957,952 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 6,060,462 7,630,429 24,044,155 (10,813,816) - --------------------------------------------------------------------------------------------------------------------------------- Net assets at the beginning of period 715,679,926 708,049,497 1,214,720,830 1,225,534,646 - --------------------------------------------------------------------------------------------------------------------------------- Net assets at the end of period $721,740,388 $715,679,926 $1,238,764,985 $1,214,720,830 - --------------------------------------------------------------------------------------------------------------------------------- Undistributed (Over-distribution of) net investment income at the end of period $(24,240,841) $ -- $ (47,509,767) $ -- - ---------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 44
EQUITY PREMIUM EQUITY PREMIUM ADVANTAGE (JLA) AND GROWTH (JPG) ----------------------------- ------------------------------ SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED 6/30/07 12/31/06 6/30/07 12/31/06 - ------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 3,049,509 $ 5,044,077 $ 4,494,265 $ 7,536,145 Net realized gain (loss) from: Investments (4,856,158) (25,325,874) (482,033) (11,889,817) Call options written (3,730,620) (9,667,782) (6,529,482) (5,336,041) Change in net unrealized appreciation (depreciation) of: Investments 37,985,530 66,909,819 19,173,632 49,090,741 Call options written (3,769,037) (3,099,138) 2,984,525 (3,295,248) - ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 28,679,224 33,861,102 19,640,907 36,105,780 - ------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS From and in excess of net investment income (23,543,643) -- (13,386,279) -- From net investment income -- (5,044,077) -- (8,145,953) From accumulated net realized gains -- -- -- (2,230,158) Tax return of capital -- (41,535,076) -- (16,362,378) - ------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (23,543,643) (46,579,153) (13,386,279) (26,738,489) - ------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from sale of shares and offering costs adjustments -- 38,068 (11,071) -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 2,630,617 4,481,520 614,101 -- - ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from capital share transactions 2,630,617 4,519,588 603,030 -- - ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets 7,766,198 (8,198,463) 6,857,658 9,367,291 - ------------------------------------------------------------------------------------------------------------------------------ Net assets at the beginning of period 474,780,708 482,979,171 323,569,006 314,201,715 - ------------------------------------------------------------------------------------------------------------------------------ Net assets at the end of period $482,546,906 $474,780,708 $330,426,664 $323,569,006 - ------------------------------------------------------------------------------------------------------------------------------ Undistributed (Over-distribution of) net investment income at the end of period $(20,494,134) $ -- $ (8,892,014) $ -- - ------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 45 Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The funds (the "Funds") covered in this report and their corresponding New York Stock Exchange symbols are Nuveen Equity Premium Income Fund (JPZ), Nuveen Equity Premium Opportunity Fund (JSN), Nuveen Equity Premium Advantage Fund (JLA) and Nuveen Equity Premium and Growth Fund (JPG). The Funds are registered under the Investment Company Act of 1940, as amended, as diversified, closed-end management investment companies. Each Fund seeks to provide a high level of current income and gains by investing primarily in a diversified equity portfolio that seeks to substantially replicate price movements of either the Standard & Poor's 500 Stock Index or a weighted average of the Standard & Poor's 500 Stock Index and the NASDAQ-100 Index and is designed to support the Funds' index option strategies. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States. Investment Valuation Exchange-listed equity securities are generally valued at the last sales price on the securities exchange on which such securities are primarily traded. Securities traded on a securities exchange for which there are no transactions on a given day or securities not listed on a securities exchange are valued at the mean of the closing bid and asked prices. Securities traded on Nasdaq are valued at the Nasdaq Official Closing Price. Prices of index options are provided through an independent pricing service approved by the Funds' Board of Trustees. If the pricing service is unable to supply a price for a derivative investment the Funds may use a market quote provided by a major broker/dealer in such investments. If it is determined that the market price for an investment is unavailable or inappropriate, the Board of Trustees of the Funds, or its designee, may establish fair value in accordance with procedures established in good faith by the Board of Trustees. In establishing fair value, the Board of Trustees, or its designee, will use a wide variety of market data including prices of comparable securities, indications of value from security dealers, general market conditions and other information and analysis. Short-term investments are valued at amortized cost, which approximates market value. Index options are generally valued at the average of the closing bid and asked quotations. The close of trading of index options traded on the Chicago Board Options Exchange normally occurs at 4:15 ET, which is different from the normal 4:00 ET close of the NYSE (the time of day as of which each Fund's NAV is calculated). Under normal market circumstances, closing index option quotations are considered to reflect the index option contract values as of the close of the NYSE and will be used to value the option contracts. However, a significant change in the S&P 500 or NASDAQ-100 futures contracts between the NYSE close and the options market close will be considered as an indication that closing market quotations for index options do not reflect the value of the contracts as of the stock market close. In the event of such a significant change, the Board of Trustees, or its designee, will determine a fair value for the options. Any such fair valuation will likely take into account any information that may be available about the actual trading price of the affected option as of 4:00 ET, and if no such information is reliably available, the fair valuation of the option may take into account various option pricing methodologies, as determined to be appropriate under the circumstances. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method. Option Transactions Each Fund purchases index put options and writes (sells) index call options. The purchase of put options involves the risk of loss of all or part of the cash paid for the options. Put options purchased are accounted for in the same manner as portfolio securities. When the Funds write an index call option, an amount equal to the net premium received (the premium less commission) is recorded as a liability and is subsequently adjusted to the current value of the written option until the option expires or the Funds enter into a closing purchase transaction. When an index call option expires or the Funds enter into a closing purchase transaction, the difference between the net premium received and any amount paid at expiration or on effecting a closing purchase transaction, including commission, is treated as a net realized gain on option contracts written or, if the net premium received is less than the amount paid, as a net realized loss on option contracts written. The Funds, as writers of an index call option, bear the risk of an unfavorable change in the market value of the index underlying the written option. Investment Income Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income is recorded on an accrual basis. 46 Federal Income Taxes The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. The Fund intends to distribute substantially all of its investment company taxable income to shareholders. In any year when the Fund realizes net capital gains, the Fund may choose to distribute all or a portion of its net capital gains to shareholders, or alternatively, to retain all or a portion of its net capital gains and pay federal corporate income taxes on such retained gains. Dividends and Distributions to Shareholders Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal corporate income tax regulations, which may differ from accounting principles generally accepted in the United States. The Funds make quarterly cash distributions to shareholders of a stated dollar amount per share. Subject to approval and oversight by the Funds' Board of Trustees, each Fund seeks to maintain a stable distribution level designed to deliver the long-term return potential of each Fund's investment strategy through regular quarterly distributions (a "Managed Distribution Policy"). Total distributions during a calendar year generally will be made from each Fund's net investment income, net realized capital gains and net unrealized capital gains in the Fund's portfolio, if any. The portion of distributions paid from net unrealized gains, if any, would be distributed from the Fund's assets and would be treated by shareholders as a non-taxable distribution for tax purposes. If a Fund's total return on net asset value exceeds total distributions during a calendar year, the excess will be reflected as an increase in net asset value per share. In the event that total distributions during a calendar year exceed a Fund's total return on net asset value, the difference will be treated as a return of capital for tax purposes and will reduce net asset value per share. The final determination of the source and character of all distributions for the fiscal year are made after the end of the fiscal year and reflected in the financial statements contained in the annual report as of December 31 each year. Real Estate Investment Trust ("REIT") distributions received by the Funds are generally comprised of ordinary income, long-term and short-term capital gains, and a return of REIT capital. The actual character of amounts received during the period are not known until after the fiscal year-end. For the fiscal year ended December 31, 2006, the character of distributions to the Funds from the REITs was as follows:
EQUITY EQUITY EQUITY EQUITY PREMIUM PREMIUM PREMIUM PREMIUM AND INCOME OPPORTUNITY ADVANTAGE GROWTH (JPZ) (JSN) (JLA) (JPG) - ---------------------------------------------------------------------------------------------------------------------------- Ordinary income 69.68% 56.33% 65.29% 54.03% Long-term and short-term capital gains 13.99 20.25 19.55 37.72 Return of REIT capital 16.33 23.42 15.16 8.25 - ----------------------------------------------------------------------------------------------------------------------------
For the fiscal years ended December 31, 2006, the Funds applied the actual character of distributions reported by the REITs in which the Funds invest to their receipts from the REITs. If a REIT held in the portfolio of investments did not report the actual character of its distributions during the period, the Funds treated the distributions as ordinary income. For the six months ended June 30, 2007, the Funds applied the actual percentages for the fiscal year ended December 31, 2006, described above, to its receipts from the REITs and treated as income in the Statement of Operations only the amount of ordinary income so calculated. The Funds adjusts that estimated breakdown of income type (and consequently its net investment income) as necessary early in the following calendar year when the REITs inform their shareholders of the actual breakdown of income type. The actual character of distributions made by the Funds during the fiscal year ended December 31, 2006, are reflected in the accompanying financial statements. The distributions made by the Funds during the six months ended June 30, 2007, are provisionally classified as being "From and in excess of net investment income", and those distributions will be classified as being from net investment income, net realized capital gains and/or a return of capital, for tax purposes after the fiscal year end. For purposes of calculating "Undistributed (Over-distribution of) net investment income" as of June 30, 2007, the distribution amounts provisionally classified as "From and in excess of net investment income" were treated as being entirely from net investment income. Consequently, the financial statements at June 30, 2007, reflect an over-distribution of net investment income. 47 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) Repurchase Agreements In connection with transactions in repurchase agreements, it is the Funds' policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the seller defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which the Funds overdraw their account at the custodian bank. Indemnifications Under the Funds' organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates. 2. FUND SHARES Transactions in shares were as follows:
EQUITY PREMIUM EQUITY PREMIUM INCOME (JPZ) OPPORTUNITY (JSN) ---------------------------------- ---------------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED 6/30/07 12/31/06 6/30/07 12/31/06 - ----------------------------------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions 191,170 169,642 381,737 476,189 - -----------------------------------------------------------------------------------------------------------------------------
EQUITY PREMIUM EQUITY PREMIUM ADVANTAGE (JLA) AND GROWTH (JPG) ---------------------------------- ---------------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED 6/30/07 12/31/06 6/30/07 12/31/06 - ----------------------------------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions 143,655 245,272 31,102 -- - -----------------------------------------------------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS Purchases and sales (excluding put options, call options written and short-term investments) during the six months ended June 30, 2007, were as follows:
EQUITY EQUITY EQUITY EQUITY PREMIUM PREMIUM PREMIUM PREMIUM INCOME OPPORTUNITY ADVANTAGE AND GROWTH (JPZ) (JSN) (JLA) (JPG) - --------------------------------------------------------------------------------------------------------------------------------- Purchases $24,865,147 $33,976,560 $10,327,898 $16,698,768 Sales 69,996,901 90,589,389 34,307,406 20,974,234 - ---------------------------------------------------------------------------------------------------------------------------------
48 Transactions in call options written during the six months ended June 30, 2007, were as follows:
EQUITY PREMIUM EQUITY PREMIUM INCOME (JPZ) OPPORTUNITY (JSN) ---------------------------------- ---------------------------------- NUMBER OF PREMIUMS NUMBER OF PREMIUMS CONTRACTS RECEIVED CONTRACTS RECEIVED - --------------------------------------------------------------------------------------------------------------------------------- Outstanding, beginning of period 4,954 $23,418,815 15,548 $44,498,005 Call options written 16,347 62,314,575 45,835 107,880,276 Call options terminated in closing purchase transactions (16,689) (62,945,510) (46,053) (108,266,043) Call options expired -- -- (1,348) (2,672,450) - --------------------------------------------------------------------------------------------------------------------------------- Outstanding, end of period 4,612 $22,787,880 13,982 $41,439,788 - ---------------------------------------------------------------------------------------------------------------------------------
EQUITY PREMIUM EQUITY PREMIUM ADVANTAGE (JLA) AND GROWTH (JPG) ---------------------------------- ---------------------------------- NUMBER OF PREMIUMS NUMBER OF PREMIUMS CONTRACTS RECEIVED CONTRACTS RECEIVED - --------------------------------------------------------------------------------------------------------------------------------- Outstanding, beginning of period 8,016 $19,166,900 1,754 $8,277,155 Call options written 21,438 42,207,171 5,907 22,472,973 Call options terminated in closing purchase transactions (21,670) (43,139,670) (5,927) (22,191,013) Call options expired (1,219) (1,412,403) -- -- - --------------------------------------------------------------------------------------------------------------------------------- Outstanding, end of period 6,565 $16,821,998 1,734 $8,559,115 - ---------------------------------------------------------------------------------------------------------------------------------
4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the recognition of unrealized gain or loss for tax (mark-to-market) on index option contracts, recognition of income on REIT investments and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At June 30, 2007, the cost of investments (excluding call options written) was as follows:
EQUITY EQUITY EQUITY EQUITY PREMIUM PREMIUM PREMIUM PREMIUM INCOME OPPORTUNITY ADVANTAGE AND GROWTH (JPZ) (JSN) (JLA) (JPG) - -------------------------------------------------------------------------------------------------------------------------------- Cost of investments $550,701,026 $957,403,907 $364,212,427 $271,403,136 - --------------------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments (excluding call options written) at June 30, 2007, were as follows:
EQUITY EQUITY EQUITY EQUITY PREMIUM PREMIUM PREMIUM PREMIUM INCOME OPPORTUNITY ADVANTAGE AND GROWTH (JPZ) (JSN) (JLA) (JPG) - -------------------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $191,310,800 $324,865,016 $134,124,906 $66,857,771 Depreciation (4,097,515) (9,074,529) (1,724,128) (1,864,389) - -------------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $187,213,285 $315,790,487 $132,400,778 $64,993,382 - --------------------------------------------------------------------------------------------------------------------------------
49 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) The tax components of undistributed net ordinary income and net long-term capital gains at December 31, 2006, the Funds' tax year end, were as follows:
EQUITY EQUITY EQUITY EQUITY PREMIUM PREMIUM PREMIUM PREMIUM INCOME OPPORTUNITY ADVANTAGE AND GROWTH (JPZ) (JSN) (JLA) (JPG) - -------------------------------------------------------------------------------------------------------------------------------- Undistributed net ordinary income * $ -- $ -- $ -- $ -- Undistributed net long-term capital gains -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------
* Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. The tax character of distributions paid during the Funds' last tax year ended December 31, 2006, was designated for purposes of the dividends paid deduction as follows:
EQUITY EQUITY EQUITY EQUITY PREMIUM PREMIUM PREMIUM PREMIUM INCOME OPPORTUNITY ADVANTAGE AND GROWTH (JPZ) (JSN) (JLA) (JPG) - -------------------------------------------------------------------------------------------------------------------------------- Distributions from net ordinary income * $16,326,681 $20,798,723 $5,044,077 $9,032,221 Distributions from net long-term capital gains -- -- -- 1,343,890 Tax return of capital 49,045,844 96,097,990 41,535,076 16,362,378 - --------------------------------------------------------------------------------------------------------------------------------
* Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. At December 31, 2006, the Funds' last tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
EQUITY EQUITY EQUITY EQUITY PREMIUM PREMIUM PREMIUM PREMIUM INCOME OPPORTUNITY ADVANTAGE AND GROWTH (JPZ) (JSN) (JLA) (JPG) - -------------------------------------------------------------------------------------------------------------------------------- Expiration Year: 2013 $7,414,951 $ -- $ -- $ -- 2014 48,509,922 88,340,234 49,316,814 17,559,325 - -------------------------------------------------------------------------------------------------------------------------------- Total $55,924,873 $ 88,340,234 $ 49,316,814 $ 17,559,325 - --------------------------------------------------------------------------------------------------------------------------------
The Funds elected to defer net realized losses from investments incurred from November 1, 2006 through December 31, 2006 ("post-October losses") in accordance with federal income tax regulations. Post-October losses are treated as having arisen on the first day of the current taxable year:
EQUITY EQUITY EQUITY EQUITY PREMIUM PREMIUM PREMIUM PREMIUM INCOME OPPORTUNITY ADVANTAGE AND GROWTH (JPZ) (JSN) (JLA) (JPG) - -------------------------------------------------------------------------------------------------------------------------------- $10,847,811 $16,643,281 $5,178,975 $3,166,753 - --------------------------------------------------------------------------------------------------------------------------------
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser, and a specific fund-level component, based only on the amount of assets within each individual fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. 50 The annual fund-level fee, payable monthly, for each Fund is based upon the average daily Managed Assets of each Fund as follows:
EQUITY PREMIUM INCOME (JPZ) EQUITY PREMIUM OPPORTUNITY (JSN) EQUITY PREMIUM ADVANTAGE (JLA) AVERAGE DAILY MANAGED ASSETS FUND-LEVEL FEE RATE - ---------------------------------------------------------------------------------------------- For the first $500 million .7000% For the next $500 million .6750 For the next $500 million .6500 For the next $500 million .6250 For Managed Assets over $2 billion .6000 - ----------------------------------------------------------------------------------------------
EQUITY PREMIUM AND GROWTH (JPG) AVERAGE DAILY MANAGED ASSETS FUND-LEVEL FEE RATE - --------------------------------------------------------------------------------------------- For the first $500 million .6800% For the next $500 million .6550 For the next $500 million .6300 For the next $500 million .6050 For Managed Assets over $2 billion .5800 - ---------------------------------------------------------------------------------------------
The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the tables below. As of June 30, 2007, the complex-level fee rate was .1828%. Effective August 20, 2007, the complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL(1) EFFECTIVE RATE AT BREAKPOINT LEVEL - ------------------------------------------------------------------------------------------------ $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 - ------------------------------------------------------------------------------------------------
51 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) Prior to August 20, 2007, the complex-level fee schedule was as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL(1) EFFECTIVE RATE AT BREAKPOINT LEVEL - ------------------------------------------------------------------------------------------------ $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1698 $125 billion .1617 $200 billion .1536 $250 billion .1509 $300 billion .1490 - ------------------------------------------------------------------------------------------------
(1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to preferred stock issued by or borrowings by the Nuveen funds) of Nuveen sponsored funds in the U.S. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser has entered into Sub-Advisory Agreements with Gateway Investment Advisers, L.P. ("Gateway") under which Gateway manages the investment portfolios of the Funds. Gateway is compensated for its services to the Funds from the management fees paid to the Adviser. The Funds pay no compensation directly to those of its Trustees who are affiliated with the Adviser or to its Officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds. For the first eight years of Equity Premium Income's (JPZ) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily Managed Assets, for fees and expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING OCTOBER 31, OCTOBER 31, - ----------------------------------------------------------------------------------------------------- 2004 * .30% 2009 .30% 2005 .30 2010 .22 2006 .30 2011 .14 2007 .30 2012 .07 2008 .30 - -----------------------------------------------------------------------------------------------------
* From the commencement of operations. The Adviser has not agreed to reimburse Equity Premium Income (JPZ) for any portion of its fees and expenses beyond October 31, 2012. For the first eight years of Equity Premium Opportunity's (JSN) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily Managed Assets, for fees and expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING JANUARY 31, JANUARY 31, - ----------------------------------------------------------------------------------------------------- 2005 * .30% 2010 .30% 2006 .30 2011 .22 2007 .30 2012 .14 2008 .30 2013 .07 2009 .30 - -----------------------------------------------------------------------------------------------------
* From the commencement of operations. The Adviser has not agreed to reimburse Equity Premium Opportunity (JSN) for any portion of its fees and expenses beyond January 31, 2013. 52 For the first six years of Equity Premium Advantage's (JLA) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily Managed Assets, for fees and expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING MAY 31, MAY 31, - ----------------------------------------------------------------------------------------------------- 2005 * .20% 2009 .20% 2006 .20 2010 .20 2007 .20 2011 .10 2008 .20 - -----------------------------------------------------------------------------------------------------
* From the commencement of operations. The Adviser has not agreed to reimburse Equity Premium Advantage (JLA) for any portion of its fees and expenses beyond May 31, 2011. Agreement and Plan of Merger On June 20, 2007, Nuveen Investments announced that it had entered into a definitive Agreement and Plan of Merger ("Merger Agreement") with an investor group majority-led by Madison Dearborn Partners, LLC. Madison Dearborn Partners, LLC is a private equity investment firm based in Chicago, Illinois. The investor group includes affiliates of Merrill Lynch, Wachovia, Citigroup, Deutsche Bank and Morgan Stanley. It is anticipated that Merrill Lynch and its affiliates will be indirect "affiliated persons" (as that term is defined in the Investment Company Act of 1940) of the Funds. One important implication of this is that the Funds will not be able to buy or sell securities to or from Merrill Lynch, but the portfolio management teams and Fund management do not expect that this will significantly impact the ability of the Funds to pursue their investment objectives and policies. Under the terms of the merger, each outstanding share of Nuveen Investments' common stock (other than dissenting shares) will be converted into the right to receive a specified amount of cash, without interest. The merger is expected to be completed by the end of the year, subject to customary conditions, including obtaining the approval of Nuveen Investments shareholders, obtaining necessary fund and client consents sufficient to satisfy the terms of the Merger Agreement, and expiration of certain regulatory waiting periods. The obligations of Madison Dearborn Partners, LLC to consummate the merger are not conditioned on its obtaining financing. The consummation of the merger will be deemed to be an "assignment" (as defined in the 1940 Act) of the investment management agreement between the Fund and the Adviser, and will result in the automatic termination of the Fund's agreement. Prior to the consummation of the merger, it is anticipated that the Board of Trustees of the Fund will consider a new investment management agreement with the Adviser. If approved by the Board, the new agreement would be presented to the Fund's shareholders for approval, and, if so approved by shareholders, would take effect upon consummation of the merger. There can be no assurance that the merger described above will be consummated as contemplated or that necessary shareholder approvals will be obtained. 6. NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards Board Interpretation No. 48 Effective June 29, 2007, the Funds adopted Financial Accounting Standards Board Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance regarding how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds' tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management of the Funds has concluded that there are no significant uncertain tax positions that require recognition in the Funds' financial statements. Consequently, the adoption of FIN 48 had no impact on the net assets or results of operations of the Funds. Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this standard relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of June 30, 2007, the Funds do not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements included within the Statement of Operations for the period. 53 Financial HIGHLIGHTS (Unaudited) Selected data for a share outstanding throughout each period:
Investment Operations -------------------------------- Net Beginning Net Realized/ Net Asset Investment Unrealized Value Income(a) Gain (Loss) Total - ---------------------------------------------------------------------------------- EQUITY PREMIUM INCOME (JPZ) - ---------------------------------------------------------------------------------- Year Ended 12/31: 2007(f) $18.59 $.22 $ .70 $ .92 2006 18.48 .43 1.39 1.82 2005 19.28 .42 .48 .90 2004(b) 19.10 .12 .24 .36 EQUITY PREMIUM OPPORTUNITY (JSN) - ---------------------------------------------------------------------------------- Year Ended 12/31: 2007(f) 18.36 .17 .98 1.15 2006 18.66 .32 1.16 1.48 2005(c) 19.10 .30 .78 1.08 EQUITY PREMIUM ADVANTAGE (JLA) - ---------------------------------------------------------------------------------- Year Ended 12/31: 2007(f) 18.35 .12 .98 1.10 2006 18.84 .20 1.13 1.33 2005(d) 19.10 .10 .60 .70 EQUITY PREMIUM AND GROWTH (JPG) - ---------------------------------------------------------------------------------- Year Ended 12/31: 2007(f) 19.60 .27 .92 1.19 2006 19.04 .46 1.72 2.18 2005(e) 19.10 .04 (.06) (.02) - ---------------------------------------------------------------------------------- Less Distributions ----------------------------------------- Net Tax Ending Ending Investment Capital Return of Offering Net Asset Market Income Gains Capital Total Costs Value Value - ---------------------------------------------------------------------------------- EQUITY PREMIUM INCOME (JPZ) - ---------------------------------------------------------------------------------- Year Ended 12/31: 2007(f) $(.85)* $ -- $ -- $ (.85) $-- $18.66 $ 18.27 2006 (.43) -- (1.28) (1.71) -- 18.59 19.22 2005 (.40) -- (1.30) (1.70) -- 18.48 17.38 2004(b) (.15) -- --** (.15) (.03) 19.28 20.25 EQUITY PREMIUM OPPORTUNITY (JSN) - ---------------------------------------------------------------------------------- Year Ended 12/31: 2007(f) (.89)* -- -- (.89) -- 18.62 18.22 2006 (.32) -- (1.46) (1.78) -- 18.36 18.62 2005(c) (.30) (.15) (1.05) (1.50) (.02) 18.66 17.39 EQUITY PREMIUM ADVANTAGE (JLA) - ---------------------------------------------------------------------------------- Year Ended 12/31: 2007(f) (.91)* -- -- (.91) -- 18.54 18.51 2006 (.20) -- (1.62) (1.82) -- 18.35 19.20 2005(d) (.10) (.13) (.69) (.92) (.04) 18.84 17.56 EQUITY PREMIUM AND GROWTH (JPG) - ---------------------------------------------------------------------------------- Year Ended 12/31: 2007(f) (.81)* -- -- (.81) -- 19.98 19.10 2006 (.49) (.14) (.99) (1.62) -- 19.60 19.38 2005(e) -- -- -- -- (.04) 19.04 17.25 - ----------------------------------------------------------------------------------
* Represents distributions paid "From and in excess of net investment income" for the six months ended June 30, 2007. ** Per share Tax Return of Capital rounds to less than $.01 per share. *** Annualized. **** Total Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ***** After custodian fee credit and expense reimbursement, where applicable. (a) Per share Net Investment Income is calculated using the average daily shares method. (b) For the period October 26, 2004 (commencement of operations) through December 31, 2004. (c) For the period January 26, 2005 (commencement of operations) through December 31, 2005. (d) For the period May 25, 2005 (commencement of operations) through December 31, 2005. (e) For the period November 22, 2005 (commencement of operations) through December 31, 2005. (f) For the six months ended June 30, 2007. 54
Ratios/Supplemental Data -------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Before Ratios to Average Net Assets After Total Returns Credit/Reimbursement Credit/Reimbursement***** --------------------- ----------------------------------- ----------------------------------- Based Based on on Net Ending Net Net Portfolio Market Asset Net Assets Investment Investment Turnover Value**** Value**** (000) Expenses Income Expenses Income Rate - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- (.48)% 5.04% $ 721,740 .95%*** 2.12%*** .64%*** 2.42%*** 4% 21.30 10.22 715,680 .96 1.99 .66 2.30 23 (6.12) 4.88 708,049 .96 1.93 .65 2.25 29 1.96 1.68 723,894 1.07*** 3.49*** .73*** 3.82*** 1 - ------------------------------------------------------------------------------------------------------------------------------- 2.68 6.37 1,238,765 .94*** 1.58*** .64*** 1.89*** 3 17.86 8.28 1,214,721 .95 1.41 .65 1.72 8 (5.90) 5.65 1,225,535 .95*** 1.40*** .63*** 1.72*** 16 - ------------------------------------------------------------------------------------------------------------------------------- 1.23 6.09 482,547 .98*** 1.08*** .77*** 1.28*** 2 20.52 7.35 474,781 .99 .85 .78 1.06 26 (7.87) 3.43 482,979 1.01*** .71*** .78*** .93*** 9 - ------------------------------------------------------------------------------------------------------------------------------- 2.74 6.16 330,427 .92*** 2.76*** .92*** 2.76*** 5 22.68 11.90 323,569 .96 2.34 .93 2.37 37 (13.75) (.31) 314,202 1.11*** 2.08*** 1.11*** 2.08*** -- - -------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 55 Annual Investment Management Agreement APPROVAL PROCESS The Board Members are responsible for overseeing the performance of the investment adviser to the Funds and determining whether to continue the advisory arrangements. At the annual review meeting held on May 21, 2007 (the "May Meeting"), the Board Members of the Funds, including the Independent Board Members, unanimously approved the continuance of the Investment Management Agreement between each Fund (a "Fund") and Nuveen Asset Management ("NAM" or the "Adviser"), and the Sub-Advisory Agreements between NAM and Gateway Investment Advisers, L.P. ("Gateway" or the "Sub-Adviser"). NAM and the Sub-Adviser are each a "Fund Adviser." The foregoing Investment Management Agreements with NAM and Sub-Advisory Agreements with the Sub-Adviser are hereafter referred to as "Original Investment Management Agreements" and "Original Sub-Advisory Agreements," respectively. Subsequent to the May Meeting, Nuveen Investments, Inc. ("Nuveen"), the parent company of NAM, entered into a merger agreement providing for the acquisition of Nuveen by Windy City Investments, Inc., a corporation formed by investors led by Madison Dearborn Partners, LLC ("MDP"), a private equity investment firm (the "Transaction"). Each Original Investment Management Agreement and Original Sub-Advisory Agreement, as required by Section 15 of the Investment Company Act of 1940 (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 Transaction will result in a change of control of NAM as well as its affiliated sub-advisers and therefore cause the automatic termination of each Original Investment Management Agreement and Original Sub-Advisory Agreement, as required by the 1940 Act. Accordingly, in anticipation of the Transaction, at a meeting held on July 31, 2007 (the "July Meeting"), the Board Members, including the Independent Board Members, unanimously approved new Investment Management Agreements (the "New Investment Management Agreements") with NAM on behalf of each Fund and new Sub-Advisory Agreements (the "New Sub-Advisory Agreements") between NAM and the Sub-Adviser on behalf of each Fund to take effect immediately after the Transaction or shareholder approval of the new advisory contracts, whichever is later. The 1940 Act also requires that each New Investment Management Agreement and New Sub-Advisory Agreement be approved by the respective Fund's shareholders in order for it to become effective. Accordingly, to ensure continuity of advisory services, the Board Members, including the Independent Board Members, unanimously approved Interim Investment Management Agreements and Interim Sub-Advisory Agreements to take effect upon the closing of the Transaction if shareholders have not yet approved the New Investment Management Agreements and New Sub-Advisory Agreements. Subsequent to the May Meeting, the Board was also informed that Natixis Global Asset Management, L.P. ("Natixis GAM") will acquire, through its wholly-owned subsidiary, IXIS Anchor Acquisition, LLC (which will simultaneously change its name to Gateway Investment Advisers, LLC) ("New Gateway") substantially all of the assets and liabilities of Gateway (the "Gateway Transaction"). As noted above, each Original Sub-Advisory Agreement with Gateway, as required by Section 15 of the 1940 Act, will automatically terminate upon its "assignment" (as defined in the 1940 Act). Under the 1940 Act, a change in control of an investment company's sub-adviser is deemed to be an assignment. The Gateway Transaction will cause a change in control of Gateway and, accordingly, will be deemed to cause an assignment of each Original Sub-Advisory Agreement with Gateway. As a result, each Original Sub-Advisory Agreement between NAM and Gateway on behalf of the Funds will terminate upon the closing of the Gateway Transaction. Accordingly, in anticipation of the Gateway Transaction, the Board of each Fund, including the Independent Board Members, unanimously approved a new sub-advisory agreement between NAM and New Gateway on behalf of each Fund (each a "New Gateway Sub-Advisory Agreement"). Because the information provided and considerations made at the annual review continue to be relevant with respect to the evaluation of the New Investment Management Agreements and New Sub-Advisory Agreements, the Board considered the foregoing as part of its deliberations of the New Investment Management Agreements and New Sub-Advisory Agreements. Accordingly, as indicated, the discussions immediately below outline the materials and information presented to the Board in connection with the Board's prior annual review and the analysis 56 undertaken and the conclusions reached by Board Members when determining to continue the Original Investment Management Agreements and Original Sub-Advisory Agreements. In addition, the approvals for the New Gateway Sub-Advisory Agreements are set forth below under Section IV. I. APPROVAL OF THE ORIGINAL INVESTMENT MANAGEMENT AGREEMENTS & ORIGINAL SUB-ADVISORY AGREEMENTS During the course of the year, the Board received a wide variety of materials relating to the services provided by the Fund Advisers and the performance of the Funds (as applicable). At each of its quarterly meetings, the Board reviewed investment performance (as applicable) and various matters relating to the operations of the Funds and other Nuveen funds, including the compliance program, shareholder services, valuation, custody, distribution and other information relating to the nature, extent and quality of services provided by the Fund Adviser. Between the regularly scheduled quarterly meetings, the Board Members received information on particular matters as the need arose. In preparation for their considerations at the May Meeting, the Independent Board Members received extensive materials, well in advance of the meeting, which outlined or are related to, among other things: - - the nature, extent and quality of services provided by the Fund Adviser; - - the organization and business operations of the Fund Adviser, including the responsibilities of various departments and key personnel; - - each Fund's past performance as well as the Fund's performance compared to funds with similar investment objectives based on data and information provided by an independent third party and to recognized and/or customized benchmarks (as appropriate); - - the profitability of the Fund Adviser and certain industry profitability analyses for unaffiliated advisers; - - the expenses of the Fund Adviser in providing the various services; - - the advisory fees and total expense ratios of each Fund, including comparisons of such fees and expenses with those of comparable, unaffiliated funds based on information and data provided by an independent third party (the "Peer Universe") as well as compared to a subset of funds within the Peer Universe (the "Peer Group") of the respective Fund (as applicable); - - the advisory fees the Fund Adviser assesses to other types of investment products or clients; - - the soft dollar practices of the Fund Adviser, if any; and - - from independent legal counsel, a legal memorandum describing among other things, applicable laws, regulations and duties in reviewing and approving advisory contracts. At the May Meeting, NAM made a presentation to, and responded to questions from, the Board. At the May Meeting, the Independent Board Members met privately with their legal counsel to review the Board's duties in reviewing advisory contracts and considering the renewal of the advisory contracts (which include the sub-advisory contracts). The Independent Board Members, in consultation with independent counsel, reviewed the factors set out in judicial decisions and Securities and Exchange Commission ("SEC") 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, but not limited to, 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 (as applicable); (c) the costs of the services to be provided and profits to be realized by the Fund Adviser and its affiliates; (d) the extent to which economies of scale would be realized; and (e) whether fee levels reflect those economies of scale for the benefit of the Fund's investors. In addition, as noted, the Board Members met regularly throughout the year to oversee the Funds. In evaluating the advisory contracts, the Board Members also relied upon their knowledge of the respective Fund Adviser, its services and the Funds resulting from their meetings and other 57 Annual Investment Management Agreement APPROVAL PROCESS (continued) interactions throughout the year. It is with this background that the Board Members considered each advisory contract. A. NATURE, EXTENT & QUALITY OF SERVICES In considering the renewal of the Original Investment Management Agreements and Original Sub-Advisory Agreements, the Board Members considered the nature, extent and quality of the respective Fund Adviser's services. The Board Members reviewed materials outlining, among other things, the Fund Adviser's organization and business; the types of services that the Fund Adviser or its affiliates provide or are expected to provide to the Funds; the performance record of the Fund (as described in further detail below); and at the annual review, any initiatives Nuveen had taken for the applicable fund product line. As noted, at the annual review, the Board Members were already familiar with the organization, operations and personnel of each respective Fund Adviser due to the Board Members' experience in governing the respective Funds and working with such Fund Advisers on matters relating to the Funds. At the May Meeting, the Board Members also recognized NAM's investment in additional qualified personnel throughout the various groups in the organization and recommended to NAM that it continue to review staffing needs as necessary. The Board Members recognized NAM's investment of resources and efforts to continue to enhance and refine its investment processes. With respect to the Sub-Adviser, the Board Members also received and reviewed an evaluation of the Sub-Adviser from NAM at the annual review. Such evaluation outlined, among other things, the Sub-Adviser's organizational history, client base, product mix, investment team and any changes thereto, investment process and any changes to its investment strategy, and the Funds' investment objectives and performance (as applicable). At the May Meeting, the Board Members noted that NAM recommended the renewal of the applicable Original Sub-Advisory Agreements and considered the basis for such recommendations and any qualifications in connection therewith. In its review of the Sub-Adviser, the Board Members also considered, among other things, the experience of the investment personnel, the quality of the Sub-Adviser's investment processes in making portfolio management decisions and any additional refinements and improvements adopted to the portfolio management processes and Fund performance. During the last year, the Board Members noted that they visited several sub-advisers meeting their key investment and business personnel. In this regard, the Board Members visited Gateway in October, 2006. The Board Members noted the Sub-Adviser's experienced investment team. In addition to advisory services, the Independent Board Members considered the quality of administrative and non-advisory services provided by NAM and noted that NAM and its affiliates provide the Funds with a wide variety of services and officers and other personnel as are necessary for the operations of the Funds, including: - - product management; - - fund administration; - - oversight by shareholder services and other fund service providers; - - administration of Board relations; - - regulatory and portfolio compliance; and - - legal support. As the Funds operate in a highly regulated industry and given the importance of compliance, the Board Members considered, in particular, NAM's compliance activities for the Funds and enhancements thereto. In this regard, the Board Members recognized the quality of NAM's compliance team. The Board Members also considered NAM's ability and procedures to monitor the Sub-Adviser's performance, business practices and compliance policies and procedures. The Board Members further noted NAM's negotiations with other service providers and the corresponding reduction in certain service providers' fees at the May Meeting. In addition to the foregoing services, the Board Members also noted the additional services that NAM or its affiliates provide to Nuveen's closed-end funds, including, in particular, its secondary market support activities. The Board Members recognized Nuveen's continued commitment to supporting the secondary market for the common shares 58 of its closed-end funds through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include: - - maintaining shareholder communications; - - providing advertising for the Nuveen closed-end funds; - - maintaining its closed-end fund website; - - maintaining continual contact with financial advisers; - - providing educational symposia; - - conducting research with investors and financial analysis regarding closed-end funds; and - - evaluating secondary market performance. With respect to the Nuveen closed-end funds that utilize leverage through the issuance of preferred shares ("Preferred Shares"), the Board Members noted Nuveen's continued support for the holders of Preferred Shares by, among other things: - - maintaining an in-house trading desk; - - maintaining a product manager for the Preferred Shares; - - developing distribution for Preferred Shares with new market participants; - - maintaining an orderly auction process; - - managing leverage and risk management of leverage; and - - maintaining systems necessary to test compliance with rating agency criteria. With respect to the Sub-Adviser, the Board Members noted that the sub-advisory agreements were essentially agreements for portfolio management services only and the 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 Funds under the respective Original Investment Management Agreement or Original Sub-Advisory Agreement, as applicable, were satisfactory. B. THE INVESTMENT PERFORMANCE OF THE FUNDS & FUND ADVISERS At the May Meeting, the Board considered the investment performance for each Fund, including the Fund's historic performance as well as its performance compared to funds with similar investment objectives (the "Performance Peer Group") based on data provided by an independent third party (as described below). The Board Members also reviewed the respective Fund's historic performance compared to recognized and/or customized benchmarks (as applicable). In evaluating the performance information during the annual review at the May Meeting, in certain instances, the Board Members noted that the closest Performance Peer Group for a fund may not adequately reflect such fund's investment objectives and strategies, thereby limiting the usefulness of the comparisons of such fund's performance with that of the Performance Peer Group. These Performance Peer Groups include those for the Funds as well as for: the Nuveen Diversified Dividend and Income Fund; the Nuveen Multi-Strategy Income and Growth Fund; the Nuveen Multi-Strategy Income and Growth Fund 2; the Nuveen Tax-Advantaged Floating Rate Fund; and the Nuveen Real Estate Income Fund. The Board Members reviewed performance information including, among other things, total return information compared with the respective Fund's Performance Peer Group as well as recognized and/or customized benchmarks (as appropriate) for the one-, three- and five-year periods (as applicable) ending December 31, 2006. This information supplemented the performance information provided to the Board at each of its quarterly meetings. Based on their review at the May Meeting, the Board Members determined that the respective Fund's investment performance over time had been satisfactory. 59 Annual Investment Management Agreement APPROVAL PROCESS (continued) C. FEES, EXPENSES & PROFITABILITY 1. Fees & Expenses During the annual review, the Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund's advisory fees (net and gross management fees) and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as comparisons to the gross management fees (before waivers), net management fees (after waivers) and total expense ratios (before and after waivers) of comparable funds in the Peer Universe and the Peer Group. In reviewing the fee schedule for a Fund, the Board Members considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen. The Board Members further reviewed data regarding the construction of Peer Groups as well as the methods of measurement for the fee and expense analysis and the performance analysis. In certain cases, due to the small number of peers in the Peer Universe, the Peer Universe and Peer Group had significant overlap or even consisted entirely of the same unaffiliated funds. In reviewing the comparisons of fee and expense information, the Board Members recognized that in certain cases, the size of a fund relative to peers, the small size and odd composition of the Peer Group (including differences in objectives and strategies), expense anomalies, timing of information used or other factors impacting the comparisons thereby limited some of the usefulness of the comparative data. The Board Members also considered the differences in the use of leverage. The Board Members also noted the limited Peer Groups available for the Nuveen funds with multi-sleeves of investments (e.g., the Nuveen Diversified Dividend and Income Fund, the Nuveen Multi-Strategy Income and Growth Fund, the Nuveen Multi-Strategy Income and Growth Fund 2 and the Nuveen Tax-Advantaged Total Return Strategy Fund). Based on their review of the fee and expense information provided, the Board Members determined that each Fund's net total expense ratio was within an acceptable range compared to peers. 2. Comparisons with the Fees of Other Clients At the annual review, the Board Members further reviewed data comparing the advisory fees of NAM with fees NAM charges to other clients. Such clients include NAM's separately managed accounts and funds that are not offered by Nuveen but are sub-advised by one of Nuveen's investment management teams. In general, the advisory fees charged for separate accounts are somewhat lower than the advisory fees assessed to the Funds. The Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. As described in further detail above, such additional services include, but are not limited to: product management, fund administration, oversight of third party service providers, administration of Board relations, and legal support. The Board Members noted that the Funds operate in a highly regulated industry requiring extensive compliance functions compared to other investment products. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Board Members believe such facts justify the different levels of fees. With respect to the Sub-Adviser, in considering the fees of the Sub-Adviser, the Board Members also considered the pricing schedule or fees that the Sub-Adviser charges for similar investment management services for other fund sponsors or clients, as applicable. With respect to sub-advisers unaffiliated with Nuveen, such as the Sub-Adviser, the Board Members noted that such fees were the result of arm's-length negotiations. 3. Profitability of Fund Advisers In conjunction with its review of fees, the Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers) and its financial condition. At the annual review, the Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last three years, the allocation methodology used in preparing the profitability data as well as the 2006 60 Annual Report for Nuveen. The Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Board Members noted the enhanced dialogue and information regarding profitability with NAM during the year, including more frequent meetings and updates from Nuveen's corporate finance group. The Board Members considered Nuveen's profitability compared with other fund sponsors prepared by three independent third party service providers as well as comparisons of the revenues, expenses and profit margins of various unaffiliated management firms with similar amounts of assets under management prepared by Nuveen. In reviewing profitability, the Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser's particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Board Members reviewed Nuveen's methodology at the annual review and assumptions for allocating expenses across product lines to determine profitability. Last year, the Board Members also designated an Independent Board Member as a point person for the Board to review the methodology determinations during the year and any refinements thereto, which relevant information produced from such process was reported to the full Board. In reviewing profitability, the Board Members recognized Nuveen's increased investment in its fund business. Based on its review, the Board Members concluded that Nuveen's level of profitability for its advisory activities was reasonable in light of the services provided. With respect to sub-advisers unaffiliated with Nuveen, such as the Sub-Adviser, the Board Members also considered the Sub-Adviser's revenues from serving as Sub-Adviser to the Funds, expenses (including the basis for allocating expenses) and profitability margins (pre- and post-tax). Based on their review, the Board Members were satisfied that the respective Fund Adviser's level of profitability was reasonable in light of the services provided. In evaluating the reasonableness of the compensation, the Board Members also considered other amounts paid to a Fund Adviser by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangement of each Fund, the Board Members determined that the advisory fees and expenses of the Funds were reasonable. D. ECONOMIES OF SCALE & WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Board Members recognized the potential benefits resulting from the costs of a Fund being spread over a larger asset base. To help ensure the shareholders share in these benefits, the Board Members reviewed and considered the breakpoints in the advisory fee schedules that reduce advisory fees. In addition to advisory fee breakpoints, the Board also approved a complex-wide fee arrangement in 2004. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex, including the Funds, are reduced as the assets in the fund complex reach certain levels. In evaluating the complex-wide fee arrangement, the Board Members noted that the last complex-wide asset level breakpoint for the complex-wide fee schedule was at $91 billion and that the Board Members anticipated further review and/or negotiations prior to the assets of the Nuveen complex reaching such threshold. Based on their review, the Board Members concluded that the breakpoint schedule and complex-wide fee arrangement were acceptable and desirable in providing benefits from economies of scale to shareholders, subject to further evaluation of the complex-wide fee schedule as assets in the complex increase. See Section II, Paragraph D -- "Approval of the New Investment Management Agreements and New Sub-Advisory Agreements -- Economies of Scale and Whether Fee Levels Reflect These Economies of Scale" for information regarding subsequent modifications to the complex-wide fee. 61 Annual Investment Management Agreement APPROVAL PROCESS (continued) 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 the revenues received by affiliates of NAM for serving as agent at Nuveen's preferred trading desk and for serving as a co-manager in the initial public offering of new closed-end exchange traded funds. In addition to the above, the Board Members considered whether the Fund Adviser received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to the Fund Adviser in managing the assets of the Funds and other clients. With respect to NAM, the Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating "commissions," NAM intends to comply with the applicable safe harbor provisions. With respect to the Sub-Adviser, the Board considered that while the Sub-Adviser may select brokers that provide it with research services, it is the Sub-Adviser's current practice not to receive soft dollar credits in connection with trades executed for the Funds it advises but it may seek to do so in the future. Based on their review, the Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters. F. OTHER CONSIDERATIONS The Board Members did not identify any single factor discussed previously as all-important or controlling in their considerations to continue an advisory contract. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Original Investment Management and Original Sub-Advisory Agreements are fair and reasonable, that the respective Fund Adviser's fees are reasonable in light of the services provided to each Fund and that the Original Investment Management Agreements and the Original Sub-Advisory Agreements be renewed. II. APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS AND NEW SUB-ADVISORY AGREEMENTS Following the May Meeting, the Board Members were advised of the potential Transaction. As noted above, the completion of the Transaction would terminate each of the Original Investment Management Agreements and Original Sub-Advisory Agreements. Accordingly, at the July Meeting, the Board of each Fund, including the Independent Board Members, unanimously approved the New Investment Management Agreements and New Sub-Advisory Agreements on behalf of the respective Funds. Leading up to the July Meeting, the Board Members had several meetings and deliberations with and without Nuveen management present, and with the advice of legal counsel, regarding the proposed Transaction as outlined below. On June 8, 2007, the Board Members held a special telephonic meeting to discuss the proposed Transaction. At that meeting, the Board Members established a special ad hoc committee comprised solely of Independent Board Members to focus on the Transaction and to keep the Independent Board Members updated with developments regarding the Transaction. On June 15, 2007, the ad hoc committee discussed with representatives of NAM the Transaction and modifications to the complex-wide fee schedule that would generate additional fee savings at specified levels of complex-wide asset growth. Following the foregoing meetings and several subsequent telephonic conferences among Independent Board Members and independent counsel, and between Independent Board Members and representatives of Nuveen, the Board met on June 18, 2007 to further discuss the proposed Transaction. Immediately prior to and then again during the June 18, 2007 meeting, the Independent Board Members met privately with their independent legal counsel. At that meeting, the Board met with representatives of MDP, of Goldman Sachs, Nuveen's financial adviser in the Transaction, and of the Nuveen Board to discuss, among other things, the history and structure of MDP, the terms of the proposed Transaction (including the financing terms), 62 and MDP's general plans and intentions with respect to Nuveen (including with respect to management, employees, and future growth prospects). On July 9, 2007, the Board also met to be updated on the Transaction as part of a special telephonic Board meeting. The Board Members were further updated at a special in-person Board meeting held on July 19, 2007 (one Independent Board Member participated telephonically). Subsequently, on July 27, 2007, the ad hoc committee held a telephonic conference with representatives of Nuveen and MDP to further discuss, among other things, the Transaction, the financing of the Transaction, retention and incentive plans for key employees, the effect of regulatory restrictions on transactions with affiliates after the Transaction, and current volatile market conditions and their impact on the Transaction. In connection with their review of the New Investment Management Agreements and New Sub-Advisory Agreements, the Independent Board Members, through their independent legal counsel, also requested in writing and received additional information regarding the proposed Transaction and its impact on the provision of services by NAM and its affiliates. The Independent Board Members received, well in advance of the July Meeting, materials which outlined, among other things: - - the structure and terms of the Transaction, including MDP's co-investor entities and their expected ownership interests, and the financing arrangements that will exist for Nuveen following the closing of the Transaction; - - the strategic plan for Nuveen following the Transaction; - - the governance structure for Nuveen following the Transaction; - - any anticipated changes in the operations of the Nuveen funds following the Transaction, including changes to NAM's and Nuveen's day-to-day management, infrastructure and ability to provide advisory, distribution or other applicable services to the Funds; - - any changes to senior management or key personnel who work on Fund related matters (including portfolio management, investment oversight, and legal/compliance) and any retention or incentive arrangements for such persons; - - any anticipated effect on each Fund's expense ratio (including advisory fees) following the Transaction; - - any benefits or undue burdens imposed on the Funds as a result of the Transaction; - - any legal issues for the Funds as a result of the Transaction; - - the nature, quality and extent of services expected to be provided to the Funds following the Transaction, changes to any existing services and policies affecting the Funds, and cost-cutting efforts, if any, that may impact such services or policies; - - any conflicts of interest that may arise for Nuveen or MDP with respect to the Funds; - - the costs associated with obtaining necessary shareholder approvals and who would bear those costs; and - - from legal counsel, a memorandum describing the applicable laws, regulations and duties in approving advisory contracts, including, in particular, with respect to a change of control. Immediately preceding the July Meeting, representatives of MDP met with the Board to further respond to questions regarding the Transaction. After the meeting with MDP, the Independent Board Members met with independent legal counsel in executive session. At the July Meeting, Nuveen also made a presentation and responded to questions. Following the presentations and discussions of the materials presented to the Board, the Independent Board Members met again in executive session with their counsel. As outlined in more detail below, the Independent Board Members considered all factors they believed relevant with respect to each Fund, including the impact that the Transaction could be expected to have on the following: (a) the nature, extent and quality of services to be provided; (b) the investment performance of the Funds; (c) the costs of the services and profits to be realized by Nuveen and its affiliates; (d) the extent to which economies of scale would be realized; and (e) whether fee levels reflect those economies of scale for the benefit of investors. As noted above, during the past year, the Board Members had completed their annual review of the respective Original Investment Management Agreements and Original Sub-Advisory Agreements and many of the factors considered at such reviews were applicable to their 63 Annual Investment Management Agreement APPROVAL PROCESS (continued) evaluation of the New Investment Management Agreements and New Sub-Advisory Agreements. Accordingly, in evaluating such agreements, the Board Members relied upon their knowledge and experience with the Fund Advisers and considered the information received and their evaluations and conclusions drawn at the reviews. While the Board reviewed many Nuveen funds at the July Meeting, the Independent Board Members evaluated all information available to them on a fund-by-fund basis, and their determinations were made separately in respect of each Fund. A. NATURE, EXTENT & QUALITY OF SERVICES In evaluating the nature, quality and extent of the services expected to be provided by the Fund Adviser under the applicable New Investment Management Agreement or New Sub-Advisory Agreement, the Independent Board Members considered, among other things, the expected impact, if any, of the Transaction on the operations, facilities, organization and personnel of NAM and the Sub-Adviser (if applicable); the potential implications of regulatory restrictions on the Funds following the Transaction; the ability of NAM and its affiliates to perform their duties after the Transaction; and any anticipated changes to the current investment and other practices of the Funds. The Board noted that the terms of each New Investment Management Agreement, including the fees payable thereunder, are substantially identical to those of the Original Investment Management Agreement relating to the same Fund (with both reflecting reductions to fee levels in the complex-wide fee schedule for complex-wide assets in excess of $80 billion that have an effective date of August 20, 2007). Similarly, the terms of each New Sub-Advisory Agreement, including fees payable thereunder, are substantially identical to those of the Original Sub-Advisory Agreement relating to the same Fund. The Board considered that the services to be provided and the standard of care under the New Investment Advisory Agreements and the New Sub-Advisory Agreements are the same as the corresponding original agreements. The Board Members noted the Transaction does not alter the allocation of responsibilities between the Adviser and Sub-Adviser. The Sub-Adviser will continue to 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 each Fund's investment portfolio allocated by the Adviser to the Sub-Adviser, all on behalf of the applicable Fund and subject to oversight of the Board and the Adviser. The Board Members further noted that key personnel of the Adviser or Sub-Adviser who have responsibility for the Funds in each area, including portfolio management, investment oversight, fund management, fund operations, product management, legal/compliance and board support functions, are expected to be the same following the Transaction. The Board Members considered and are familiar with the qualifications, skills and experience of such personnel. The Board also considered certain information regarding any anticipated retention or incentive plans designed to retain key personnel. Further, the Board Members noted that no changes to Nuveen's infrastructure (including at the affiliated sub-adviser level) or operations as a result of the Transaction were anticipated other than potential enhancements as a result of an expected increase in the level of investment in such infrastructure and personnel. The Board noted MDP's representations that it does not plan to have a direct role in the management of Nuveen, appointing new management personnel, or directly impacting individual staffing decisions. The Board Members also noted that there were not any planned "cost cutting" measures that could be expected to reduce the nature, extent or quality of services. After consideration of the foregoing, the Board Members concluded that no diminution in the nature, quality and extent of services provided to the Funds and their shareholders by the respective Fund Advisers is expected. In addition to the above, the Board Members considered potential changes in the operations of each Fund. In this regard, the Board Members considered the potential effect of regulatory restrictions on the Funds' transactions with future affiliated persons. During their deliberations, it was noted that, after the Transaction, a subsidiary of Merrill Lynch is expected to have an ownership interest in Nuveen at a level that will make Merrill Lynch an affiliated person of Nuveen. The Board Members recognized that applicable law would generally prohibit the Funds from engaging in securities transactions with Merrill Lynch as principal, and would also impose restrictions on using Merrill Lynch for agency transactions. They recognized that having MDP and Merrill Lynch as affiliates may restrict the Nuveen funds' 64 ability to invest in securities of issuers controlled by MDP or issued by Merrill Lynch and its affiliates even if not bought directly from MDP or Merrill Lynch as principal. They also recognized that various regulations may require the Nuveen funds to apply investment limitations on a combined basis with affiliates of Merrill Lynch. The Board Members considered information provided by NAM regarding the potential impact on the Nuveen funds' operations as a result of these regulatory restrictions. The Board Members considered, in particular, the Nuveen funds that may be impacted most by the restricted access to Merrill Lynch, including: municipal funds (particularly certain state- specific funds), senior loan funds, taxable fixed income funds, preferred security funds and funds that heavily use derivatives. The Board Members considered such funds' historic use of Merrill Lynch as principal in their transactions and information provided by NAM regarding the expected impact resulting from Merrill Lynch's affiliation with Nuveen and available measures that could be taken to minimize such impact. NAM informed the Board Members that, although difficult to determine with certainty, its management did not believe that MDP's or Merrill Lynch's status as an affiliate of Nuveen would have a material adverse effect on any Nuveen fund's ability to pursue its investment objectives and policies. In addition to the regulatory restrictions considered by the Board, the Board Members also considered potential conflicts of interest that could arise between the Nuveen funds and various parties to the Transaction and discussed possible ways of addressing such conflicts. Based on its review along with its considerations regarding services at the annual review, the Board concluded that the Transaction was not expected to adversely affect the nature, quality or extent of services provided by the respective Fund Adviser and that the expected nature, quality and extent of such services supported approval of the New Investment Management Agreements and New Sub-Advisory Agreements. B. PERFORMANCE OF THE FUNDS With respect to the performance of the Funds, the Board considered that the portfolio management personnel responsible for the management of the Funds' portfolios were expected to continue to manage the portfolios following the completion of the Transaction. In addition, the Board Members recently reviewed Fund performance at the May Meeting, as described above, and determined such Funds' performance was satisfactory or better. The Board Members further noted that the investment policies and strategies were not expected to change as a result of the Transaction. In light of the foregoing factors, along with the prior findings regarding performance at the annual review, the Board concluded that its findings with respect to performance supported approval of the New Investment Management Agreements and New Sub-Advisory Agreements. C. FEES, EXPENSES & PROFITABILITY As described in more detail above, during the annual review, the Board Members considered, among other things, the management fees and expenses of the Funds, the breakpoint schedules, and comparisons of such fees and expenses with peers. At the annual review, the Board Members determined that the respective Fund's advisory fees and expenses were reasonable. In evaluating the profitability of the Fund Adviser under the New Investment Management Agreements and New Sub-Advisory Agreements, the Board Members considered their conclusions at their prior reviews and whether the management fees or other expenses would change as a result of the Transaction. As described above, the investment management fee for NAM is composed of two components -- a fund-level component and complex-wide level component. The fee schedule under the New Investment Management Agreements to be paid to NAM is identical to that under the Original Investment Management Agreements, including the modified complex-wide fee schedule. As noted above, the Board recently approved a modified complex-wide fee schedule that would generate additional fee savings on complex-wide assets above $80 billion. The modifications have an effective date of August 20, 2007 and are part of the Original Investment Management Agreements. Accordingly, the terms of the complex-wide component under the New Investment Management Agreements are the same as under the Original Investment Management Agreements. The Board Members also noted that Nuveen has committed for a period of two years from the date of closing of the 65 Annual Investment Management Agreement APPROVAL PROCESS (continued) Transaction that it will not increase gross management fees for any Nuveen fund and will not reduce voluntary expense reimbursement levels for any Nuveen fund from their currently scheduled prospective levels. Based on the information provided, the Board Members did not expect that overall Fund expenses would increase as a result of the Transaction. In addition, the Board Members considered that additional fund launches were anticipated after the Transaction which would result in an increase in total assets under management in the complex and a corresponding decrease in overall management fees under the complex-wide fee schedule. Taking into consideration the Board's prior evaluation of fees and expenses at the annual renewal, and the modification to the complex-wide fee schedule, the Board determined that the management fees and expenses were reasonable. While it is difficult to predict with any degree of certainty the impact of the Transaction on Nuveen's profitability for its advisory activities (which includes its affiliated sub-advisers), at the recent annual review, the Board Members were satisfied that Nuveen's level of profitability for its advisory activities was reasonable. During the year, the Board Members had noted the enhanced dialogue regarding profitability and the appointment of an Independent Board Member as a point person to review methodology determinations and refinements in calculating profitability. Given their considerations at the annual review and the modifications to the complex-wide fee schedule, the Board Members were satisfied that Nuveen's level of profitability for its advisory activities continues to be reasonable. With respect to the Sub-Adviser, the fees paid under the New Sub-Advisory Agreements are the same as the Original Sub-Advisory Agreements. With respect to sub-advisers unaffiliated with Nuveen, such as the Sub-Adviser, the Board Members considered the Sub-Adviser's revenues from serving as Sub-Adviser to the Funds, expenses (including the basis for allocating expenses) and profitability margins (pre- and post-tax) at the annual review. The Transaction is not anticipated to affect the profitability of the Sub-Adviser. At the annual review, the Board Members were satisfied that the respective Fund Adviser's level of profitability was reasonable in light of the services provided. Taking into account the Board's prior evaluation and the fact that sub-advisory fees will not change, the Board Members were satisfied that the respective Fund Advisers' levels of profitability were reasonable in light of the services provided. D. ECONOMIES OF SCALE & WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE The Board Members have been cognizant of economies of scale and the potential benefits resulting from the costs of a Fund being spread over a larger asset base. To help ensure that shareholders share in the benefits derived from economies of scale, the Board adopted the complex-wide fee arrangement in 2004. At the May Meeting, the Board Members reviewed the complex-wide fee arrangements and noted that additional negotiations may be necessary or appropriate as the assets in the complex approached the $91 billion threshold. In light of this assessment coupled with the upcoming Transaction, at the June 15, 2007 meeting, the ad hoc committee met with representatives of Nuveen to further discuss modifications to the complex-wide fee schedule that would generate additional savings for shareholders as the assets of the complex grow. The proposed terms for the complex-wide fee schedule are expressed in terms of targeted cumulative savings at specified levels of complex-wide assets, rather than in terms of targeted marginal complex-wide fee rates. Under the modified schedule, the schedule would generate additional fee savings beginning at complex-wide assets of $80 billion in order to achieve targeted cumulative annual savings at $91 billion of $28 million on a complex-wide level (approximately $0.6 million higher than those generated under the then current schedule) and generate additional fee savings for asset growth above complex-wide assets of $91 billion in order to achieve targeted annual savings at $125 billion of assets of approximately $50 million on a complex-wide level (approximately $2.2 million higher annually than that generated under the then current schedule). At the July Meeting, the Board approved the modified complex-wide fee schedule for the Original Investment Management Agreements and these same terms will apply to the New Investment Management Agreements. Accordingly, the Board Members believe that the breakpoint schedules and revised complex-wide fee schedule are appropriate and desirable in ensuring that shareholders participate in the benefits derived from economies of scale. 66 E. INDIRECT BENEFITS During their recent annual review, the Board Members considered any indirect benefits that the Fund Adviser may receive as a result of its relationship with the Funds, as described above. As the policies and operations of the Fund Advisers are not anticipated to change significantly after the Transaction, such indirect benefits should remain after the Transaction. The Board Members further considered any additional indirect benefits to be received by the Fund Adviser or its affiliates after the Transaction. The Board Members noted that other than benefits from its ownership interest in Nuveen and indirect benefits from fee revenues paid by the Funds under the management agreements and other Board-approved relationships, it was currently not expected that MDP or its affiliates would derive any benefit from the Funds as a result of the Transaction or transact any business with or on behalf of the Funds (other than perhaps potential Fund acquisitions, in secondary market transactions, of securities issued by MDP portfolio companies); or that Merrill Lynch or its affiliates would derive any benefits from the Funds as a result of the Transaction (noting that, indeed, Merrill Lynch would stand to experience the discontinuation of principal transaction activity with the Nuveen funds and likely would experience a noticeable reduction in the volume of agency transactions with the Nuveen funds). F. OTHER CONSIDERATIONS In addition to the factors above, the Board Members also considered the following with respect to the Funds: - - Nuveen would rely on the provisions of Section 15(f) of the 1940 Act. Section 15(f) provides, in substance, that when a sale of a controlling interest in an investment adviser occurs, the investment adviser or any of its affiliated persons may receive any amount or benefit in connection with the sale so long as (i) during the three-year period following the consummation of a transaction, at least 75% of the investment company's board of directors must not be "interested persons" (as defined in the 1940 Act) of the investment adviser or predecessor adviser and (ii) an "unfair burden" (as defined in the 1940 Act, including any interpretations or no-action letters of the SEC) must not be imposed on the investment company as a result of the transaction relating to the sale of such interest, or any express or implied terms, conditions or understanding applicable thereto. In this regard, to help ensure that an unfair burden is not imposed on the Nuveen funds, Nuveen has committed for a period of two years from the date of the closing of the Transaction (i) not to increase gross management fees for any Nuveen fund; (ii) not to reduce voluntary expense reimbursement levels for any Nuveen fund from their currently scheduled prospective levels during that period; (iii) that no Nuveen fund whose portfolio is managed by a Nuveen affiliate shall use Merrill Lynch as a broker with respect to portfolio transactions done on an agency basis, except as may be approved in the future by the Compliance Committee of the Board; and (iv) that each adviser/portfolio team affiliated with Nuveen shall not cause the Funds (or sleeves thereof) and other Nuveen funds that the team manages, as a whole, to enter into portfolio transactions with or through the other minority owners of Nuveen, on either a principal or an agency basis, to a significantly greater extent than both what one would expect an investment team to use such firm in the normal course of business, and what such team has historically done, without prior Board or Compliance Committee approval (excluding the impact of proportionally increasing the use of such other "minority owners" to fill the void necessitated by not being able to use Merrill Lynch). - - The Funds would not incur any costs in seeking the necessary shareholder approvals for the New Investment Management Agreements or New Sub-Advisory Agreements (except for any costs attributed to seeking shareholder approvals of Fund specific matters unrelated to the Transaction, such as approval of Board Members or changes to investment policies, in which case a portion of such costs will be borne by the applicable Funds). - - The reputation, financial strength and resources of MDP. - - The long-term investment philosophy of MDP and anticipated plans to grow Nuveen's business to the benefit of the Nuveen funds. - - The benefits to the Nuveen funds as a result of the Transaction including: (i) as a private company, Nuveen may have more flexibility in making additional investments in its business; (ii) as a private company, Nuveen may be better able to structure compensation packages to attract and retain talented personnel; (iii) as certain of Nuveen's distribution partners are expected to be equity or debt investors in Nuveen, Nuveen may be able to take advantage of new or enhanced distribution arrangements with such partners; and (iv) MDP's experience, 67 Annual Investment Management Agreement APPROVAL PROCESS (continued) capabilities and resources that may help Nuveen identify and acquire investment teams or firms and finance such acquisitions. - - The historic premium and discount levels at which the shares of the Nuveen funds have traded at specified dates with particular focus on the premiums and discounts after the announcement of the Transaction, taking into consideration recent volatile market conditions and steps or initiatives considered or undertaken by NAM to address discount levels. G. CONCLUSION The Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the New Investment Management Agreements and New Sub-Advisory Agreements are fair and reasonable, that the fees therein are reasonable in light of the services to be provided to each Fund and that the New Investment Management Agreements and New Sub-Advisory Agreements should be approved and recommended to shareholders. III. APPROVAL OF INTERIM CONTRACTS As noted above, at the July Meeting, the Board Members, including the Independent Board Members, unanimously approved the Interim Investment Management Agreements and Interim Sub-Advisory Agreements. If necessary to assure continuity of advisory services, the Interim Investment Management Agreements and Interim Sub-Advisory Agreements will take effect upon the closing of the Transaction if shareholders have not yet approved the New Investment Management Agreements and New Sub-Advisory Agreements. The terms of each Interim Investment Management Agreement and Interim Sub-Advisory Agreement are substantially identical to those of the corresponding Original Investment Management Agreement and New Investment Management Agreement and the Original Sub-Advisory Agreement and New Sub-Advisory Agreement, respectively, except for certain term and escrow provisions. In light of the foregoing, the Board Members, including the Independent Board Members, unanimously determined that the scope and quality of services to be provided to the Funds under the respective Interim Investment Management Agreement and Interim Sub-Advisory Agreement are at least equivalent to the scope and quality of services provided under the applicable Original Investment Management Agreement and Original Sub-Advisory Agreement. IV. APPROVAL OF THE NEW GATEWAY SUB-ADVISORY AGREEMENTS ON BEHALF OF THE FUNDS Following the May Meeting, the Board Members were advised of the potential Gateway Transaction. As noted above, the completion of the Gateway Transaction would terminate the Original Sub-Advisory Agreement with Gateway and NAM on behalf of each Fund. Accordingly, at the July Meeting, the Board of each Fund, including the Independent Board Members, unanimously approved the New Gateway Sub-Advisory Agreement on behalf of each Fund. In connection with their review of the New Gateway Sub-Advisory Agreements, the Independent Board Members, through their independent legal counsel, requested in writing and received information regarding the proposed Gateway Transaction and its impact on the provision of services by Gateway to the Funds. The Independent Board Members received, well in advance of the July Meeting, materials provided by Gateway and Nuveen which outlined, among other things: - - the structure and terms of the Gateway Transaction, including the ownership structure of Natixis GAM following the closing of the Gateway Transaction and the financing arrangements that will exist for New Gateway following the Gateway Transaction; - - the strategic plan for New Gateway following the Gateway Transaction; - - background information regarding Natixis GAM, including its or its affiliates experience providing advisory and/or sub-advisory services to registered investment companies, financial condition, and regulatory or litigation history; 68 - - any anticipated changes in the operations of Gateway following the Gateway Transaction, including changes to Gateway's day-to-day management and infrastructure that are relevant to the services provided to the Funds, the ability to provide sub-advisory services to the Funds and to interact with NAM, as Adviser to the Funds; - - any changes or additions to senior management or the key personnel of Gateway who work on Fund-related matters (including anticipated changes to portfolio management and compliance personnel); any retention or incentive arrangements for such persons; and, if new personnel are assigned to the Funds, their experience and background; - - any anticipated effect on each Fund's expense ratio (including changes to sub-advisory fees) following the Gateway Transaction; - - any benefits or undue burdens imposed on the Funds as a result of the Gateway Transaction; - - the nature, quality and extent of the sub-advisory services expected to be provided to the Funds following the Gateway Transaction, changes to any existing sub-advisory services and policies affecting the Funds, and any cost-cutting efforts, if any, that may impact such services or policies; - - whether the Gateway Transaction will result in an increase in assets to be managed by the Funds' portfolio managers; - - any conflicts of interest that may arise for Gateway or that Natixis GAM or its affiliates may have with respect to the Funds; - - the costs associated with obtaining necessary shareholder approvals, and who would bear those costs; and - - from legal counsel, a memorandum describing the applicable laws, regulations and duties in approving advisory contracts, including, in particular, with respect to a change of control. At the July Meeting, representatives of Nuveen made a presentation and responded to questions. Following the presentations and discussions of the materials presented to the Board, the Independent Board Members met in executive session with their counsel. As outlined in more detail below, the Independent Board Members considered all factors they believed relevant with respect to each Fund, including the impact that the Gateway Transaction could be expected to have on the following: (a) the nature, extent and quality of services to be provided; (b) the investment performance of the Funds; (c) the costs of the services and profits to be realized by Gateway; (d) the extent to which economies of scale would be realized; and (e) whether fee levels reflect those economies of scale for the benefit of investors. As noted above, the Board Members had recently completed their annual review of the Original Gateway Sub-Advisory Agreements at the May Meeting and many of the factors considered at the annual review were applicable to their evaluation of the New Gateway Sub-Advisory Agreements. Accordingly, in evaluating the New Gateway Sub-Advisory Agreements, the Board Members relied upon their knowledge and experience with Gateway and considered the information received and their evaluations and conclusions drawn at the annual review. The Independent Board Members evaluated all information available to them on a Fund-by-Fund basis, and their determinations were made separately in respect of each Fund. A. NATURE, EXTENT & QUALITY OF SERVICES In evaluating the nature, quality and extent of the services expected to be provided by New Gateway under the New Gateway Sub-Advisory Agreements, the Independent Board Members considered, among other things, the expected impact, if any, of the Gateway Transaction on the operations, facilities, organization and personnel of Gateway; the potential implications of regulatory restrictions on the Funds following the Gateway Transaction; the ability of New Gateway to perform its duties after the Gateway Transaction; and any anticipated changes to the current investment and other practices of the Funds. The Board noted that the terms of each New Gateway Sub-Advisory Agreement, including fees payable thereunder, are substantially identical to those of the Original Gateway Sub-Advisory Agreement relating to the same Fund, except for the date of effectiveness. The Board considered that the advisory services to be provided by New Gateway to each Fund under the New Gateway Sub-Advisory Agreements are the same as the 69 Annual Investment Management Agreement APPROVAL PROCESS (continued) Original Gateway Sub-Advisory Agreements. The fees under the New Gateway Sub-Advisory Agreements are the same as the Original Gateway Sub-Advisory Agreements. (However, it was noted that because the sub-advisory fees for the Nuveen Equity Premium Income Fund and Nuveen Equity Premium Opportunity Fund are based on a percentage of the advisory fee to NAM, the modified complex-wide fee schedule described above will also impact the sub-advisory fees to be collected by Gateway.) The Board Members further noted that all of Gateway's senior management staff will continue to serve in their current capacities following the Gateway Transaction. The Board Members noted that the investment team is expected to remain in place under extended-term employment agreements. The Board Members considered and are familiar with such personnel's qualifications, skills and experience. Further, the Board Members noted that changes to Gateway's infrastructure relevant to the services provided to the Funds were not planned or anticipated. New Gateway will continue to operate as a separate, stand-alone registered investment adviser, independent from Natixis GAM's other investment management affiliates. The Board Members also noted that there were not any planned "cost cutting" measures that could be expected to reduce the nature, extent, or quality of sub-advisory services provided to the Funds. After consideration of the foregoing, the Board Members concluded that no diminution in the nature, quality and extent of services provided to the Funds and their shareholders is expected. In addition to the above, the Board Members considered potential changes in the operations of the Funds. In this regard, the Board Members considered the potential effect of regulatory restrictions on the Funds' transactions with affiliated persons. The Board Members noted Gateway's representations that it will implement policies and procedures to prevent trading with affiliated firms on behalf of the Funds, but does not expect the foregoing to have any impact as the firms that will be affiliated with New Gateway generally are not common trading partners used for the Funds. In addition to regulatory restrictions considered by the Board, the Board Members also considered whether a significant increase in assets under management could impact the management of the Funds. While New Gateway will continue to seek increases in assets under management, due to the depth of volume in the markets its strategy operates, Gateway did not believe a significant increase in assets under management would affect its capacity to manage the Funds. The Board Members also considered potential conflicts of interest that could arise between the Funds and the various parties to the Gateway Transaction, noting that Gateway did not believe any conflict of interest arose as a result of the Gateway Transaction. Based on its review along with its considerations regarding services at the annual review, the Board concluded that the Gateway Transaction was not expected to adversely affect the nature, quality or extent of services provided and that the expected nature, quality and extent of such services supported approval of the New Gateway Sub-Advisory Agreements. B. PERFORMANCE OF THE FUNDS With respect to the performance of the Funds, the Board considered that the portfolio management personnel responsible for the management of the Funds' portfolios were expected to continue to manage the portfolios following the completion of the Gateway Transaction. In addition, the Board Members recently reviewed the Funds' performance at the May Meeting as described above and determined that such performance was satisfactory or better. Further, the investment policies and strategies were not expected to change as a result of the Gateway Transaction. In light of the foregoing factors, along with the prior findings regarding performance at the annual review, the Board concluded that its findings with respect to performance supported approval of the New Gateway Sub-Advisory Agreements. C. FEES, EXPENSES & PROFITABILITY As described in more detail above, during the annual review the Board Members considered, among other things, the management fees and expenses of the Funds, the breakpoint schedules, and comparisons of such fees and expenses with peers. The Board also considered the sub-advisory arrangements of the Funds. In considering the fees of Gateway at the annual review, the Board Members considered the pricing schedule or fees that Gateway 70 charges for similar investment management services for other fund sponsors or clients, as available. The Board also noted that as Gateway is unaffiliated with Nuveen, the sub-advisory fees were the result of arms' length negotiations. At the annual review, the Board Members determined that the Funds' advisory fees and expenses were reasonable. In evaluating the sub-advisory fees and profitability of Gateway under the New Gateway Sub-Advisory Agreements, the Board Members considered their prior conclusions at the annual review and whether the sub-advisory fees or other expenses would change as a result of the Gateway Transaction. As noted, the sub-advisory fee schedules under each New Gateway Sub-Advisory Agreement are the same as those of the Original Gateway Sub-Advisory Agreement relating to the same Fund. Based on information provided, the Board does not anticipate that the Gateway Transaction will have any effect on the Funds' expense ratios. In light of the foregoing and taking into consideration the Board's prior evaluation of fees and expenses at the annual renewal, the Board determined that the sub-advisory fees and expenses were reasonable. While it is difficult to predict with any degree of certainty the impact of the Gateway Transaction on Gateway's profitability, at the recent annual review, the Board Members were satisfied that the level of profitability for its sub- advisory activities was reasonable. As noted, there is no change to the sub-advisory fee schedule for the Funds. Further, as New Gateway will continue to operate as an autonomous organization, separate and distinct from Natixis GAM's other investment management affiliates, no economies of scale relating to the provision of sub-advisory services to the Funds are anticipated in connection with the Gateway Transaction. Based on their review and given their considerations at the annual review, the Board Members were satisfied that Gateway's level of profitability for its sub-advisory activities continues to be reasonable. D. ECONOMIES OF SCALE & WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE As noted, New Gateway will continue to operate as an autonomous entity, separate from other Natixis GAM's other investment management affiliates. Accordingly economies of scale were not anticipated to be achieved in connection with the Gateway Transaction. In addition, the Board Members have been cognizant of the benefits from economies of scale and considered the breakpoint schedule in the New Gateway Sub-Advisory Agreements. In addition, as described above, the Board has also adopted a complex-wide fee arrangement to provide additional savings for shareholders as assets in the complex grow. At the July Meeting, the Board recently approved a modified complex-wide fee schedule as described above under Section II, Paragraph D: "Approval of the New Investment Management Agreements and New Sub-Advisory Agreements -- Economies of Scale and Whether Fee Levels Reflect These Economies of Scale." Accordingly, the Board Members believe that the breakpoint schedules and revised complex-wide fee schedule are appropriate and desirable in ensuring that shareholders participate in the benefits derived from economies of scale. E. INDIRECT BENEFITS During their recent annual review, the Board Members considered any indirect benefits that Gateway may receive as a result of its relationship with the Funds. As the policies and operations of Gateway are not anticipated to change significantly after the Gateway Transaction, such indirect benefits should remain after the Gateway Transaction. In this regard, the Board Members considered, among other things, whether Gateway received any benefits from soft dollar arrangements. The Board has noted that, while Gateway may select brokers that provide it with research services, it is Gateway's current practice not to receive soft dollar credits in connection with trades executed for the Funds it advises but it may seek to do so in the future. The Board Members further considered any additional indirect benefits to be received by Gateway or its affiliates after the Gateway Transaction. The Board Members noted that it was not expected that Natixis GAM would receive any direct benefits from the Funds as a result of the Gateway Transaction. Gateway does not currently trade securities for the Funds with any affiliate of Gateway or Natixis GAM and has represented that it has no intention to do so in the future. Other than Gateway's sub-advisory relationship with the Funds, Gateway and Natixis GAM have no other current or anticipated relation with the Funds. 71 Annual Investment Management Agreement APPROVAL PROCESS (continued) F. OTHER CONSIDERATIONS In addition to the factors above, the Board Members also considered the following: - - the Funds would not incur any costs in seeking the necessary shareholder approvals for the New Gateway Sub-Advisory Agreements; - - the reputation, financial strength and resources of Natixis GAM; and - - the philosophy of Natixis GAM to permit Gateway to continue to operate independently, permitting Gateway to manage the Funds in the same manner as currently done. G. CONCLUSION The Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the New Gateway Sub-Advisory Agreements are fair and reasonable, that the sub-advisory fees therein are reasonable in light of the services to be provided to each Fund and that the New Gateway Sub-Advisory Agreements be approved and recommended to shareholders. 72 Reinvest Automatically EASILY and CONVENIENTLY Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account. NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. 73 FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 74 Glossary of TERMS USED in this REPORT Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. Market Yield (also known as Dividend Yield or Current Yield): Market yield is based on the Fund's current annualized monthly distribution divided by the Fund's current market price. The Fund's monthly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a tax return of capital. Net Asset Value (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. 75 NOTES 76 NOTES 77 NOTES 78 OTHER USEFUL INFORMATION QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30, 2006, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public Reference Section at 450 Fifth Street NW, Washington, D.C. 20549. CEO Certification Disclosure Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. Board of Trustees Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Carol E. Stone Fund Manager Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 Custodian State Street Bank & Trust Company Boston, MA Transfer Agent and Shareholder Services State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 Legal Counsel Chapman and Cutler LLP Chicago, IL Independent Registered Public Accounting Firm PriceWaterhouseCoopers LLP Chicago, IL Each Fund intends to repurchase shares of its own common stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the period covered by this report. Any future repurchases will be reported to shareholders in the next annual or semi-annual report. 79 Nuveen Investments: - ----------------------------------------------------------------------- SERVING INVESTORS FOR GENERATIONS Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. We offer many different investing solutions for our clients' different needs. Managing $172 billion in assets, as of June 30, 2007, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under six distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; Symphony, a leading institutional manager of market-neutral alternative investment portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader in global equities. Find out how we can help you reach your financial goals. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. ESA-D-0607D Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF Share prices Fund details Daily financial news Investor education Interactive planning tools ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6. SCHEDULE OF INVESTMENTS. See Portfolio of Investments in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Equity Premium Advantage Fund By (Signature and Title)* /s/ Kevin J. McCarthy --------------------------------------- Kevin J. McCarthy Vice President and Secretary Date: September 6, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman --------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date: September 6, 2007 By (Signature and Title)* /s/ Stephen D. Foy --------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: September 6, 2007 * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 c16825cexv99wcert.txt CERTIFICATION CERTIFICATION I, Gifford R. Zimmerman, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Equity Premium Advantage Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 6, 2007 /s/ Gifford R. Zimmerman ---------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) CERTIFICATION I, Stephen D. Foy, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Equity Premium Advantage Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 6, 2007 /s/ Stephen D. Foy ----------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) EX-99.906CERT 3 c16825cexv99w906cert.txt 906 CERTIFICATION Certification Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002; provided by the Chief Executive Officer and Chief Financial Officer, based on each such officer's knowledge and belief. The undersigned officers of Nuveen Equity Premium Advantage Fund (the "Fund"), certify that, to the best of each such officer's knowledge and belief: 1. The Form N-CSR of the Fund for the period ended June 30, 2007 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Date: September 6, 2007 /s/ Gifford R. Zimmerman --------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) /s/ Stephen D. Foy --------------------------------- Stephen D. Foy Vice President, Controller (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----