-----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, Soja+qVm4A34p1fx1IGu5h4yZzk0DMklRelsNNkVA3Nkk2b8fh6Xx60re53yyAF+ 7BQDhwoBF4evK0RKF7FLDA== 0000891804-03-001505.txt : 20030708 0000891804-03-001505.hdr.sgml : 20030708 20030708113650 ACCESSION NUMBER: 0000891804-03-001505 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030430 FILED AS OF DATE: 20030708 EFFECTIVENESS DATE: 20030708 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND INC CENTRAL INDEX KEY: 0000860188 IRS NUMBER: 363689957 STATE OF INCORPORATION: MN FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06040 FILM NUMBER: 03778030 BUSINESS ADDRESS: STREET 1: 333 W WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 MAIL ADDRESS: STREET 1: 333 W WACKER CITY: CHICAGO STATE: IL ZIP: 60606 N-CSR 1 file001.txt NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC. 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 811-6040 --------------------- Nuveen Municipal Market Opportunity Fund, Inc. ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jessica R. Droeger 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: October 31st ------------------ Date of reporting period: April 30th ----------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. SEMIANNUAL REPORT April 30, 2003 Nuveen Municipal Closed-End Exchange-Traded Funds PERFORMANCE PLUS NPP MUNICIPAL ADVANTAGE NMA MARKET OPPORTUNITY NMO DIVIDEND ADVANTAGE NAD NXZ NZF Photo of: 2 men and child walking. Photo of: 2 men talking. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments FASTER INFORMATION RECEIVE YOUR NUVEEN FUND REPORT ELECTRONICALLY By registering for electronic delivery, you will receive an e-mail as soon as your Nuveen Fund information is available. Click on the link and you will be taken directly to the report. Your Fund report can be viewed and saved on your computer. Your report will arrive faster via e-mail than by traditional mail. Registering is easy and only takes a few minutes (see instructions at right). - -------------------------------------------------------------------------------- SOME COMMON CONCERNS: WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES? No, your e-mail address is strictly confidential and will not be used for anything other than notification of shareholder information. WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR MAIL DELIVERY AGAIN? If you decide you do not like receiving your reports electronically, it's a simple process to go back to regular mail delivery. - -------------------------------------------------------------------------------- IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.INVESTORDELIVERY.COM 2 Refer to the address sheet that accompanied this report. Enter the personal 13-CHARACTER ENROLLMENT NUMBER imprinted near your name. 3 You'll be taken to a page with several options. Select the NEW ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g. yourID@providerID.com), and a personal, 4-digit PIN number of your choice. (Pick a number that's easy to remember.) 4 Click Submit. Confirm the information you just entered is correct, then click Submit again. 5 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 6 Use this same process if you need to change your registration information or cancel internet viewing. IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME DIRECTLY TO YOU FROM NUVEEN, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.NUVEEN.COM 2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click on Enrollment Today. 3 You'll be taken to a screen that asks for your Social Security number and e-mail address. Fill in this information, then click Enroll. 4 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5 Use this same process if you need to change your registration information or cancel internet viewing. Logo: NUVEEN Investments Timothy R. Schwertfeger Chairman of the Board Photo of: Timothy R. Schwertfeger Sidebar text: "NO ONE KNOWS WHAT THE FUTURE WILL BRING, WHICH IS WHY WE THINK A WELL-BALANCED PORTFOLIO ... IS AN IMPORTANT COMPONENT IN ACHIEVING YOUR LONG-TERM FINANCIAL GOALS." Dear SHAREHOLDER Once again, I am pleased to report that over the most recent reporting period your Fund continued to provide you with attractive tax-free monthly income. For more specific information about the performance of your Fund, please see the Portfolio Manager's Comments and Performance Overview sections of this report. With interest rates at historically low levels, many have begun to wonder how fixed-income investments will perform if interest rates begin to rise. 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 municipal bond investments like your Nuveen Fund can be important building blocks in a portfolio crafted to perform well through a variety of market conditions. I'd also like to direct your attention to the inside front cover of this report, which explains the quick and easy process to begin receiving Fund reports like this via e-mail and the internet. Thousands of Nuveen Fund shareholders already have signed-up, and they are getting their Fund information faster and more conveniently than ever. I urge you to consider joining them. Since 1898, Nuveen Investments has offered financial products and solutions that incorporate careful research, diversification, and the application of conservative risk-management principles. We are grateful that you have chosen us as a partner as you pursue your financial goals. We look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board June 16, 2003 1 Nuveen Municipal Closed-End Exchange-Traded Funds (NPP, NMA, NMO, NAD, NXZ, NZF) Portfolio Manager's COMMENTS Portfolio manager Tom Spalding reviews economic and market conditions, key investment strategies, and the recent performance of these Nuveen National Funds. A 27-year Nuveen veteran, Tom has managed NXZ since its inception in March 2001, and assumed responsibility for NPP, NMA, NMO, NAD and NZF in January 2003. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE PERIOD ENDED APRIL 30, 2003? The underlying economic and market conditions have not changed much since our last shareholder report dated October 31, 2002. We believe the most influential factors shaping the U.S. economy and the municipal market during this reporting period continued to be the sluggish pace of economic growth and interest rates that remained at 40-year lows. At the same time, continued geopolitical concerns, centering on the ongoing threat of terrorism and the situation in Iraq, also had an impact during this reporting period, particularly in terms of investor sentiment. In the municipal market, the slow economic recovery and the continued lack of inflationary pressures created conditions that helped many bonds perform well during this reporting period. As of April 2003, inflation was running at 1.5% annualized, the lowest annual rate in 37 years. Following a record year in 2002, municipal issuance nationwide remained very heavy during the first four months of 2003, with $113.5 billion in new municipal bonds coming to market, an increase of 21% over the same period in 2002. Despite the large supply of new municipal bonds, firm or improving prices indicated continued strong demand from investors. In particular, institutional investors such as property/ casualty insurance companies, hedge funds, arbitrage accounts and pension funds were active buyers in the municipal market over much of this reporting period. HOW DID THESE FUNDS PERFORM OVER THE TWELVE-MONTH PERIOD ENDED APRIL 30, 2003? Individual results for these Funds, as well as for appropriate benchmarks, are presented in the accompanying table. TOTAL RETURN LEHMAN LIPPER MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2 - -------------------------------------------------------------------------- 1 YEAR 1 YEAR 1 YEAR TAXABLE- ENDED ENDED ENDED 4/30/03 EQUIVALENT3 4/30/03 4/30/03 4/30/03 - -------------------------------------------------------------------------- NPP 6.44% 9.20% 10.48% 8.49% 10.27% - -------------------------------------------------------------------------- NMA 6.74% 9.63% 11.46% 8.49% 10.27% - -------------------------------------------------------------------------- NMO 6.57% 9.39% 8.71% 8.49% 10.27% - -------------------------------------------------------------------------- NAD 6.53% 9.33% 12.44% 8.49% 10.27% - -------------------------------------------------------------------------- NXZ 6.88% 9.83% 11.38% 8.49% 10.27% - -------------------------------------------------------------------------- NZF 6.65% 9.50% 13.88% 8.49% 10.27% - -------------------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. For the twelve months ended April 30, 2003, all six of the Funds in this report outperformed the unleveraged, unmanaged Lehman Brothers Municipal Bond Index. All except NMO also outperformed their Lipper Fund peer group average. 1 The total annual returns on common share net asset value (NAV) for these Funds are compared with the total annual return of the Lehman Brothers Municipal Bond Index, an unleveraged index comprising a broad range of investment-grade municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The total returns of these Nuveen Funds are compared with the average annualized return of the 58 funds in the Lipper General Leveraged Municipal Debt Funds category. Fund and Lipper returns assume reinvestment of dividends. 3 The taxable-equivalent yield represents the yield that must be earned on a taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. The taxable-equivalent yield is based on the Fund's market yield on the indicated date and a federal income tax rate of 30%. 2 Much of this outperformance relative to the Lehman Index is attributable to the Funds' leveraged capital structures and to their relatively long durations4. While leverage adds volatility to a Fund, it can help enhance the amount of income paid to common shareholders, especially during a period of low short-term interest rates as was the case during the twelve-month period. The Funds' performances compared with the Lehman index also was helped by their relatively long durations. Duration is a measure of sensitivity to changes in interest rates, and, generally, the longer the duration, the more the price of an investment will react to a change in prevailing interest rates. In a time of generally declining interest rates, as was the case during much of the twelve-month period, longer duration investments would be expected to outperform shorter duration investments, all other things being equal. The durations of the six Funds as of April 30, 2003, ranged from 9.15 to 10.09, compared with 7.84 for the Lehman index. In addition to leverage and duration, the relative performances of these Funds were influenced by factors such as call exposure, portfolio trading activity and the price movement of specific sectors and holdings. During the twelve-month period, for example, the performance of NMO was impacted by its holdings of bonds backed by American Airlines and United Air Lines. Over the past year, the market value of most airline-backed bonds fell, due in part to a decline in passenger volume and in part to the well-documented financial struggles of the industry's two largest carriers. As of April 30, 2003, NMO held $50.1 million par value, or 4.8% of its portfolio, in airline-backed bonds, and their depreciation over the twelve-month period cost the Fund approximately 375 basis points in total return performance. HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES? With short-term interest rates at historically low levels, the dividend-payment capabilities of these Funds benefited from their use of leverage. The amount of this benefit is tied in part to the short-term rates the Funds pay their MuniPreferred(R) shareholders. Low short-term rates can enable the Funds to reduce the amount of income they pay MuniPreferred holders, which potentially can leave more earnings to support common share dividends. During the twelve months ended April 30, 2003, the continued low level of short-term interest rates enabled us to implement four dividend increases in NPP, NMA, and NXZ; three in NMO and NAD; and one in NZF. Over the course of this twelve-month period, strong demand and favorable market conditions helped to 4 Duration is a measure of a Fund's NAV volatility in reaction to interest rate movements. Fund duration, also known as leverage-adjusted duration, takes into account the leveraging process for a Fund and therefore is generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. References to duration in this commentary are intended to indicate Fund duration unless otherwise noted. 3 boost the share prices of all six Funds. Since their NAVs also increased, NAD moved from trading at a premium to its common share net asset value to trading at a discount, while the remaining five Funds continued to trade at discounts as of April 30, 2003 (see charts on individual Performance Overview pages). WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE PERIOD ENDED APRIL 30, 2003? Over the reporting period, we continued to place strong emphasis on diversifying the Funds' port-folios, enhancing call protection and supporting their future dividend-paying capabilities. Strategically, our main focus centered on systematically shortening the Funds' durations, which we believe will help us better control the Funds' interest rate risk over time and enhance their ability to produce consistent returns. Interest rate risk is the risk that the value of a Fund's portfolio will decline when market interest rates rise (since bond prices move in the opposite direction of interest rates). The longer the duration of a Fund's portfolio, the greater its interest rate risk. In line with our moderated duration strategy, we concentrated on finding value in the long-intermediate part of the yield curve (i.e., bonds that mature in about 20 years). In many cases, these long-intermediate bonds were offering yields similar to those of longer bonds but, in our opinion, had less inherent interest rate risk. Over the period, the purchase of bonds in this part of the curve helped to shorten the durations of these Funds, making their portfolios less sensitive to any changes in the interest rate environment while still allowing them to provide competitive yields. In general, the heavy issuance in the municipal market over the past year provided us with increased opportunities to purchase the types of bond structures that we favor. We also continued to look for individual issues that we believed would perform well regardless of the future direction of interest rates. Overall, we emphasized undervalued sectors of the market and geographical areas with healthy levels of issuance, such as Texas and Florida. All six Funds also maintained substantial weightings in healthcare bonds, the top performing group among the Lehman revenue sectors for the twelve months ended April 30, 2003. Each of these Funds held modest positions (less than 5% of its portfolio) in bonds backed by the 1998 Master Tobacco Settlement Agreement. Over the past five years, fourteen states, the 4 District of Columbia, Puerto Rico, Guam, New York City, and individual counties in California and New York have issued almost $20 billion of tobacco securitization bonds backed by this agreement. In recent months, the prices of these bonds weakened as the result of lawsuits involving the major tobacco companies as well as the increased issuance of such bonds by states planning to use the proceeds to help close budget gaps. Although the sector as a whole produced negative returns over the twelve-month period, tobacco bonds showed some recovery toward the end of the period. Given the current geopolitical and economic climate, we believe that maintaining strong credit quality remains a vital requirement, and we continued to emphasize higher rated and insured bonds in our purchases for the Funds. As of April 30, 2003, each of these Funds offered excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 69% to 84%. In general, our weightings in higher quality and insured bonds benefited the performance of these Funds during the twelve-month period. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE NUVEEN FUNDS IN PARTICULAR? We think new issuance volume should remain strong, as issuers continue to take advantage of the low rate environment. Adding to our expec tations for continued strong issuance are the budget deficits affecting many states, and their continued need to raise money for infrastructure, education and healthcare needs. Over coming months, we will continue to closely monitor the states' budgetary situations to watch for any potential impact on credit ratings. Looking at the bond call exposure, we believe these Funds offer good levels of call protection during the remainder of 2003 and through 2004. As of April 30, 2003, the percentage of bonds eligible for calls ranged from 1% in NZF to 14% in NPP during 2003 and 2004. The number of actual calls during this time will depend largely on market interest rates and the specific situations of individual issuers. In the coming months, our primary goal will continue to be moderating the Funds' durations. In addition, we plan to watch for opportunities to purchase or swap for issues that we perceive to be under-valued, particularly in sectors of the market that have recently underperformed. The expected strong supply of new bonds should help us in this effort. 5 Nuveen Performance Plus Municipal Fund, Inc. Performance OVERVIEW As of April 30, 2003 NPP Pie Chart: CREDIT QUALITY AAA/U.S. GUARANTEED 67% AA 15% A 11% BBB 3% NR 3% BB OR LOWER 1% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.82 - -------------------------------------------------- Common Share Net Asset Value $15.68 - -------------------------------------------------- Market Yield 6.44% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.20% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $939,552 - -------------------------------------------------- Average Effective Maturity (Years) 18.10 - -------------------------------------------------- Leverage-Adjusted Duration 9.63 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 6/89) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 11.18% 10.48% - -------------------------------------------------- 5-Year 5.59% 6.97% - -------------------------------------------------- 10-Year 5.83% 6.77% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/General 15% - -------------------------------------------------- U.S. Guaranteed 14% - -------------------------------------------------- Tax Obligation/Limited 13% - -------------------------------------------------- Utilities 11% - -------------------------------------------------- Healthcare 9% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 5/02 0.0745 6/02 0.076 7/02 0.076 8/02 0.076 9/02 0.077 10/02 0.077 11/02 0.077 12/02 0.078 1/03 0.078 2/03 0.078 3/03 0.0795 4/03 0.0795 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/02 14.3 14.29 13.96 14.08 14.13 14.29 14.33 14.57 14.76 14.73 14.71 14.98 14.64 14.85 14.97 14.77 14.75 14.84 14.93 14.88 14.96 15.05 15.08 14.9 13.98 14.16 14.4 14.29 14.12 13.77 13.95 14.01 13.86 13.86 14.15 14.3 13.98 14.02 14.16 14.34 14.27 14.16 14.15 14.43 14.48 14.45 14.28 14.46 14.42 14.5 14.59 4/30/03 14.68 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2002 of $0.0254 per share. 6 Nuveen Municipal Advantage Fund, Inc. Performance OVERVIEW As of April 30, 2003 NMA Pie Chart: CREDIT QUALITY AAA/U.S. GUARANTEED 59% AA 16% A 11% BBB 13% BB OR LOWER 1% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $15.32 - -------------------------------------------------- Common Share Net Asset Value $15.74 - -------------------------------------------------- Market Yield 6.74% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.63% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $676,349 - -------------------------------------------------- Average Effective Maturity (Years) 19.48 - -------------------------------------------------- Leverage-Adjusted Duration 9.16 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 12/89) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 11.84% 11.46% - -------------------------------------------------- 5-Year 6.32% 7.02% - -------------------------------------------------- 10-Year 6.18% 6.85% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Healthcare 16% - -------------------------------------------------- Utilities 14% - -------------------------------------------------- Housing/Single Family 14% - -------------------------------------------------- U.S. Guaranteed 13% - -------------------------------------------------- Transportation 10% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 5/02 0.0785 6/02 0.0805 7/02 0.0805 8/02 0.0805 9/02 0.082 10/02 0.082 11/02 0.082 12/02 0.0835 1/03 0.0835 2/03 0.0835 3/03 0.086 4/03 0.086 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/02 14.79 14.69 14.61 14.64 14.68 14.91 14.98 14.97 15.11 15.2 15.4 15.3 15.12 15.23 15.54 15.27 15.28 15.48 15.46 15.5 15.53 15.55 15.57 15.38 14.5 14.33 14.65 14.78 14.44 14.32 14.35 14.58 14.39 14.33 14.7 14.75 14.48 14.56 14.75 14.75 14.8 14.79 14.83 14.91 15.02 15 14.72 15 15.04 14.97 15 4/30/03 15.18 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2002 of $0.0733 per share. 7 Nuveen Municipal Market Opportunity Fund, Inc. Performance OVERVIEW As of April 30, 2003 NMO Pie Chart: CREDIT QUALITY AAA/U.S. GUARANTEED 63% AA 12% A 17% BBB 5% NR 1% BB OR LOWER 2% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.42 - -------------------------------------------------- Common Share Net Asset Value $15.01 - -------------------------------------------------- Market Yield 6.57% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.39% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $683,693 - -------------------------------------------------- Average Effective Maturity (Years) 19.00 - -------------------------------------------------- Leverage-Adjusted Duration 9.15 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/90) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 7.92% 8.71% - -------------------------------------------------- 5-Year 4.69% 5.58% - -------------------------------------------------- 10-Year 5.29% 6.08% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/General 22% - -------------------------------------------------- Transportation 17% - -------------------------------------------------- Tax Obligation/Limited 16% - -------------------------------------------------- Healthcare 11% - -------------------------------------------------- U.S. Guaranteed 9% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE 5/02 0.076 6/02 0.077 7/02 0.077 8/02 0.077 9/02 0.078 10/02 0.078 11/02 0.078 12/02 0.078 1/03 0.078 2/03 0.078 3/03 0.079 4/03 0.079 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/02 14.37 14.36 14.2 14.32 14.3 14.41 14.48 14.36 14.62 14.71 14.64 14.62 14.56 14.71 15.03 14.85 14.65 14.96 14.84 14.92 14.85 14.95 14.89 14.78 13.78 13.77 13.83 14.07 13.8 13.57 13.68 13.8 13.6 13.63 13.87 13.99 13.54 13.72 13.75 13.92 13.89 13.89 13.82 14.05 14.08 14.05 13.94 14.1 14.15 14.1 14.19 4/30/03 14.19 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. 8 Nuveen Dividend Advantage Municipal Fund Performance OVERVIEW As of April 30, 2003 NAD Pie Chart: CREDIT QUALITY AAA/U.S. GUARANTEED 64% AA 12% A 6% BBB 3% NR 11% BB OR LOWER 4% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $15.08 - -------------------------------------------------- Common Share Net Asset Value $15.32 - -------------------------------------------------- Market Yield 6.53% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.33% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $600,979 - -------------------------------------------------- Average Effective Maturity (Years) 17.59 - -------------------------------------------------- Leverage-Adjusted Duration 9.53 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 5/99) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 9.25% 12.44% - -------------------------------------------------- Since Inception 6.58% 8.25% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Healthcare 16% - -------------------------------------------------- Tax Obligation/General 15% - -------------------------------------------------- Transportation 13% - -------------------------------------------------- Tax Obligation/Limited 12% - -------------------------------------------------- U.S. Guaranteed 11% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE 5/02 0.0775 6/02 0.0795 7/02 0.0795 8/02 0.0795 9/02 0.081 10/02 0.081 11/02 0.081 12/02 0.082 1/03 0.082 2/03 0.082 3/03 0.082 4/03 0.082 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/02 14.81 14.65 14.81 14.82 14.76 14.97 14.96 14.82 15.07 15.1 15.03 14.99 15 15.2 15.25 14.9 15.03 15.2 15.41 15.2 15.2 15.46 15.7 15.07 14.47 14.45 14.51 14.5 14.46 14.34 14.29 14.4 14.38 14.4 14.61 14.95 14.29 14.5 14.57 14.79 14.92 14.87 14.98 15 15.04 14.93 14.48 14.74 14.75 14.84 14.87 4/30/03 14.95 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. 9 Nuveen Dividend Advantage Municipal Fund 2 Performance OVERVIEW As of April 30, 2003 NXZ Pie Chart: CREDIT QUALITY AAA/U.S. GUARANTEED 57% AA 12% A 18% BBB 6% NR 1% BB OR LOWER 6% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.74 - -------------------------------------------------- Common Share Net Asset Value $15.22 - -------------------------------------------------- Market Yield 6.88% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.83% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $445,540 - -------------------------------------------------- Average Effective Maturity (Years) 25.98 - -------------------------------------------------- Leverage-Adjusted Duration 9.87 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/01) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 11.77% 11.38% - -------------------------------------------------- Since Inception 5.49% 9.29% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Healthcare 22% - -------------------------------------------------- Tax Obligation/Limited 15% - -------------------------------------------------- Transportation 13% - -------------------------------------------------- Water and Sewer 11% - -------------------------------------------------- Housing/Single Family 8% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 5/02 0.0755 6/02 0.077 7/02 0.077 8/02 0.077 9/02 0.079 10/02 0.079 11/02 0.079 12/02 0.0815 1/03 0.0815 2/03 0.0815 3/03 0.0845 4/03 0.0845 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/02 14.18 14.22 14.23 13.96 14.19 14.2 14.26 14.3 14.28 14.49 14.44 14.75 14.4 14.69 14.6 14.79 14.56 14.52 14.69 14.78 14.78 14.88 14.94 14.31 14.15 13.76 14 14.15 13.83 13.54 13.72 14.08 13.89 13.77 14.25 14.21 14.21 13.98 14.15 14.23 14.41 14.21 14.2 14.44 14.55 14.38 14.31 14.56 14.65 14.55 14.58 4/30/03 14.65 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. 2 The Fund also paid shareholders a capital gains and net ordinary income distribution in December 2002 of $0.0093 per share. 10 Nuveen Dividend Advantage Municipal Fund 3 Performance OVERVIEW As of April 30, 2003 NZF Pie Chart: CREDIT QUALITY AAA/U.S. GUARANTEED 73% AA 11% A 7% BBB 3% NR 4% BB OR LOWER 2% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.08 - -------------------------------------------------- Common Share Net Asset Value $14.95 - -------------------------------------------------- Market Yield 6.65% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.50% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $602,748 - -------------------------------------------------- Average Effective Maturity (Years) 22.04 - -------------------------------------------------- Leverage-Adjusted Duration 10.09 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/01) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 8.51% 13.88% - -------------------------------------------------- Since Inception 2.18% 9.01% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Transportation 17% - -------------------------------------------------- Healthcare 16% - -------------------------------------------------- Tax Obligation/Limited 13% - -------------------------------------------------- Water and Sewer 12% - -------------------------------------------------- Tax Obligation/General 9% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE 5/02 0.0755 6/02 0.0755 7/02 0.0755 8/02 0.0755 9/02 0.0755 10/02 0.0755 11/02 0.0755 12/02 0.0755 1/03 0.0755 2/03 0.0755 3/03 0.078 4/03 0.078 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/02 13.75 14.1 13.94 13.79 13.96 14.18 13.71 13.83 14.12 14.23 14.35 14.37 13.8 14.23 14.38 14.18 14.15 14.32 14.38 14.32 14.29 14.41 14.46 14.2 13.38 13.3 13.62 13.63 13.37 13.23 13.26 13.55 13.19 13.05 13.49 13.62 13.35 13.44 13.62 13.74 13.85 13.73 13.55 13.73 13.92 13.73 13.57 13.82 13.97 13.85 13.93 4/30/03 14.07 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. 11 Nuveen Performance Plus Municipal Fund, Inc. (NPP) Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.6% $ 3,615 Alabama Water Pollution Control Authority, Revolving Fund Loan 8/05 at 100.00 AAA $ 4,022,627 Bonds, Series 1994, 6.750%, 8/15/17 - AMBAC Insured Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 1997A: 5,075 5.625%, 2/01/22 - FGIC Insured 2/07 at 101.00 AAA 5,625,739 5,325 5.375%, 2/01/27 - FGIC Insured 2/07 at 100.00 AAA 5,689,017 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.4% 1,000 Arizona Transportation Board, Highway Revenue Bonds, 7/12 at 100.00 AAA 1,068,560 Series 2002B, 5.250%, 7/01/22 Phoenix Civic Improvement Corporation, Arizona, Airport Revenue Bonds, Series 2002B, Senior Lien: 5,365 5.750%, 7/01/15 (Alternative Minimum Tax) - FGIC Insured 7/12 at 100.00 AAA 6,064,060 5,055 5.750%, 7/01/16 (Alternative Minimum Tax) - FGIC Insured 7/12 at 100.00 AAA 5,676,563 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 11.7% 11,000 Anaheim Public Financing Authority, California, Subordinate No Opt. Call AAA 4,700,520 Lease Revenue Bonds, Anaheim Public Improvements Project, 1997 Series C, 0.000%, 9/01/20 - FSA Insured 6,435 State of California, General Obligation Bonds, Series 2002 No Opt. Call AAA 7,748,705 Refunding, 6.000%, 4/01/16 - AMBAC Insured California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 4,000 6.000%, 5/01/15 5/12 at 101.00 A3 4,616,360 2,500 5.375%, 5/01/22 5/12 at 101.00 A3 2,626,300 10,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 A- 8,862,500 Tobacco Settlement Asset-Backed Bonds, Series 2003-A1, 6.750%, 6/01/39 1,000 Mt. Diablo Hospital District, California, Insured Hospital 12/03 at 102.00 AAA 1,038,390 Revenue Bonds, 1993 Series A, 5.125%, 12/01/23 - AMBAC Insured 13,450 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 17,781,034 County, California, Revenue Refunding Bonds, Project No. 1, Series 1995, 7.200%, 8/01/17 - MBIA Insured 20,420 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 24,130,927 California, Residential Mortgage Revenue Refunding Bonds, 1991 Series A, 7.150%, 2/01/10 2,325 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 3,263,300 California, Restructured Single Family Mortgage Revenue Bonds, Series 1986D, 8.000%, 4/01/16 (Alternative Minimum Tax) 10,000 San Bernardino County, California, Certificates of Participation, 8/05 at 102.00 AAA 11,122,300 Series 1995, Medical Center Financing Project, 5.500%, 8/01/15 (Pre-refunded to 8/01/05) - MBIA Insured 2,000 Airports Commission of the City and County of San Francisco, 5/09 at 101.00 AAA 2,063,560 California, Second Series Revenue Bonds, San Francisco International Airport, Issue 23B, 5.125%, 5/01/30 - FGIC Insured 2,000 Airports Commission of the City and County of San Francisco, 5/11 at 100.00 AAA 2,074,380 California, Second Series Revenue Refunding Bonds, San Francisco International Airport, Issue 27B, 5.125%, 5/01/26 - FGIC Insured 15,745 Walnut Valley Unified School District, Los Angeles County, 8/11 at 103.00 AAA 19,806,738 California, General Obligation Refunding Bonds, Series 1997A, 7.200%, 2/01/16 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 0.5% 4,925 City and County of Denver, Colorado, Airport System Revenue 11/07 at 101.00 AAA 5,085,604 Bonds, Series 1997E, 5.250%, 11/15/23 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.7% 6,985 District of Columbia Tobacco Settlement Financing Corporation, 5/11 at 101.00 A- 6,423,057 Tobacco Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24 12 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 4.5% $ 1,700 Beacon Tradeport Community Development District, 5/12 at 102.00 AA $ 1,812,064 Miami-Dade County, Florida, Special Assessment Bonds, Series 2002A, Commercial Project, 5.625%, 5/01/32 - RAAI Insured Housing Finance Authority of Broward County, Florida, Multifamily Housing Revenue Bonds, Venice Homes Apartments Project, Series 2001A: 1,545 5.700%, 1/01/32 (Alternative Minimum Tax) - FSA Insured 7/11 at 100.00 AAA 1,594,934 1,805 5.800%, 1/01/36 (Alternative Minimum Tax) - FSA Insured 7/11 at 100.00 AAA 1,872,308 4,330 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 4,598,200 Revenue Bonds, 2000 Series 11, 5.850%, 1/01/22 (Alternative Minimum Tax) - FSA Insured 10,050 State of Florida, Full Faith and Credit, State Board of Education, 6/10 at 101.00 AA+ 11,314,692 Public Education Capital Outlay Refunding Bonds, 1999 Series D, 5.750%, 6/01/22 7,000 Hillsborough County Aviation Authority, Florida, Tampa 10/13 at 100.00 AAA 7,477,680 International Airport Revenue Bonds, Series 2003A, 5.250%, 10/01/17 (Alternative Minimum Tax) - MBIA Insured 10,750 Martin County Industrial Development Authority, Florida, 12/04 at 102.00 BBB- 11,274,063 Industrial Development Revenue Bonds, Indiantown Cogeneration, L.P. Project, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax) 2,570 Housing Finance Authority of Miami-Dade County, Florida, 6/11 at 100.00 AAA 2,730,574 Multifamily Mortgage Revenue Bonds, Series 2001-1A, Country Club Villas II Project, 5.850%, 1/01/37 (Alternative Minimum Tax) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 3.2% 4,920 City of Atlanta, Georgia, Airport General Revenue and Refunding 1/10 at 101.00 AAA 5,359,405 Bonds, Series 2000A, 5.600%, 1/01/30 - FGIC Insured 5,000 City of Atlanta, Georgia, Water and Wastewater Revenue No Opt. Call AAA 5,711,550 Bonds, Series 1999A, 5.500%, 11/01/22 - FGIC Insured 2,000 George L. Smith II World Congress Center Authority, Georgia, 7/10 at 101.00 AAA 2,127,600 Refunding Revenue Bonds, Domed Stadium Project, Series 2000, 5.500%, 7/01/20 (Alternative Minimum Tax) - MBIA Insured 930 Georgia Housing and Finance Authority, Home Ownership 6/03 at 101.00 AA+ 948,154 Opportunity Program Bonds, Series 1992A, 6.875%, 12/01/20 (Alternative Minimum Tax) (Pre-refunded to 6/01/03) 15,000 Private Colleges and Universities Authority, Georgia, Revenue 11/09 at 101.00 AA 16,323,000 Bonds, Emory University Project, Series 1999A, 5.500%, 11/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.3% 1,390 Idaho Housing and Finance Association, Single Family 7/10 at 100.00 Aa2 1,503,396 Mortgage Bonds, 2000 Series G2, 5.950%, 7/01/25 (Alternative Minimum Tax) 1,210 Idaho Housing and Finance Association, Single Family 1/10 at 100.00 A1 1,292,522 Mortgage Bonds, 2000 Series D, 6.200%, 7/01/14 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 20.2% 3,000 City of Chicago, Illinois, General Obligation Library Bonds, 1/08 at 102.00 AAA 3,418,650 Series 1997, 5.750%, 1/01/17 - FGIC Insured City of Chicago, Illinois, General Obligation Bonds, City Colleges of Chicago Capital Improvement Project, Series 1999: 32,170 0.000%, 1/01/21 - FGIC Insured No Opt. Call AAA 13,258,544 32,670 0.000%, 1/01/22 - FGIC Insured No Opt. Call AAA 12,643,617 10,000 Chicago School Reform Board of Trustees of the Board of No Opt. Call AAA 4,458,500 Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1998A, 0.000%, 12/01/19 - FGIC Insured 10,000 Chicago School Reform Board of Trustees of the Board of No Opt. Call AAA 4,188,600 Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/20 - FGIC Insured 9,145 City of Chicago, Illinois, Chicago Midway Airport Revenue 1/07 at 101.00 AAA 9,794,204 Bonds, Series 1996A, 5.500%, 1/01/29 - MBIA Insured Forest Preserve District of DuPage County, Illinois, General Obligation Limited Tax Bonds, Series 2000: 8,000 0.000%, 11/01/18 No Opt. Call AAA 3,828,960 15,285 0.000%, 11/01/19 No Opt. Call AAA 6,853,488 3,500 Illinois Development Finance Authority, Pollution Control 3/05 at 102.00 AAA 3,883,215 Refunding Revenue Bonds, Commonwealth Edison Company Project, Series 1994D, 6.750%, 3/01/15 - AMBAC Insured 13 Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 10,000 Illinois Educational Facilities Authority, Adjustable Demand 12/03 at 102.00 AAA $10,468,800 Revenue Bonds, University of Chicago, Series 1985 Remarketed, 5.700%, 12/01/25 (Pre-refunded to 12/01/03) 12,910 Illinois Health Facilities Authority, Revenue Bonds, 8/04 at 102.00 AA+ 13,331,253 Series 1994A, Northwestern Memorial Hospital, 6.000%, 8/15/24 3,480 Illinois Health Facilities Authority, Revenue Refunding Bonds, 8/09 at 101.00 A- 3,607,403 Series 1999, Silver Cross Hospital and Medical Centers, 5.250%, 8/15/15 4,580 Illinois Health Facilities Authority, Revenue Bonds, 8/10 at 102.00 Aaa 4,944,843 GNMA Collateralized, Series 2000, Midwest Care Center IX, 6.250%, 8/20/35 3,000 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/13 at 100.00 A- 3,159,570 Hospital, Series 2003, 6.000%, 7/01/33 4,415 Illinois Health Facilities Authority, Revenue Refunding Bonds, 7/03 at 100.00 BB+ 4,414,205 Series 1991, Proctor Community Hospital Project, 7.375%, 1/01/23 3,700 Village of Libertyville, Illinois, Affordable Housing Revenue 11/09 at 100.00 A2 3,802,749 Bonds, Series 1999A, Liberty Towers Project, 7.000%, 11/01/29 (Alternative Minimum Tax) 6,000 McHenry County, Illinois, Conservation District General 2/11 at 100.00 AAA 6,566,580 Obligation Bonds, Series 2001A, 5.625%, 2/01/21 - FGIC Insured Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project Refunding Bonds, Series 1996A: 9,400 0.000%, 12/15/18 - MBIA Insured No Opt. Call AAA 4,472,896 16,570 0.000%, 12/15/20 - MBIA Insured No Opt. Call AAA 6,939,185 23,550 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 8,681,708 13,000 0.000%, 12/15/24 - MBIA Insured No Opt. Call AAA 4,238,780 Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project Refunding Bonds, Series 1998A: 5,180 5.500%, 12/15/23 - FGIC Insured No Opt. Call AAA 5,935,503 5,100 5.500%, 12/15/23 - FGIC Insured No Opt. Call AAA 5,828,841 10,650 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA 14,296,240 Place Hospitality Facilities Revenue Bonds, Series 1996A, 7.000%, 7/01/26 17,865 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 20,966,543 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1999, 5.750%, 6/01/23 - FSA Insured 6,090 Sherman, Illinois, Mortgage Revenue Bonds, Villa Vianney, 10/09 at 102.00 AAA 6,667,027 GNMA Series 1999 Refunding, 6.450%, 10/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 6.9% 5,000 Fort Wayne South Side School Building Corp., Allen County, 1/04 at 102.00 AAA 5,277,200 Indiana, First Mortgage Bonds, Series 1994, 6.125%, 1/15/12 (Pre-refunded to 1/15/04) - MBIA Insured 5,250 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/04 at 102.00 AAA 5,526,150 Series 1994A, Guarantee Revenue, 6.000%, 2/01/16 14,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 14,720,720 Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30 - MBIA Insured Indiana Health Facility Financing Authority, Revenue Bonds, Series 1997, Ancilla Systems Incorporated Obligated Group: 15,380 5.250%, 7/01/17 - MBIA Insured 7/07 at 101.00 AAA 17,027,967 2,250 5.250%, 7/01/22 - MBIA Insured 7/07 at 101.00 AAA 2,420,505 4,320 5.250%, 7/01/22 - MBIA Insured 7/07 at 101.00 AAA 4,647,370 8,000 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 AA 8,582,960 Bonds, Series 2000, 5.375%, 12/01/25 5,730 Michigan City School Building Corporation, First Mortgage 12/04 at 102.00 AAA 6,294,692 Bonds, LaPorte and Porter Counties, Indiana, Series 1994A, 6.125%, 12/15/09 (Pre-refunded to 12/15/04) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.4% 295 Iowa Finance Authority, Single Family Mortgage Revenue Bonds, 5/03 at 100.00 Aaa 295,510 1988 Issue B, GNMA Mortgage-Backed Securities Program, 8.250%, 5/01/20 (Alternative Minimum Tax) 5,000 Tobacco Settlement Authority, Iowa, Tobacco Settlement 6/11 at 101.00 A- 3,787,350 Asset-Backed Revenue Bonds, Series 2001B, 5.600%, 6/01/35 14 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.9% $ 5,790 Sedgwick County Unified School District No. 259, Wichita, 9/10 at 100.00 AA $ 5,395,122 Kansas, General Obligation Bonds, Series 2000, 3.500%, 9/01/17 3,200 Unified School District No. 500, County of Wyandotte, Kansas, 9/11 at 100.00 AAA 3,007,232 General Obligation School Bonds, Series 2001, 4.000%, 9/01/21 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.5% 3,700 Louisville and Jefferson Counties Metropolitan Sewer District, 5/07 at 101.00 AAA 4,252,854 Commonwealth of Kentucky, Sewer and Drainage System Revenue Bonds, Series 1997A, 6.250%, 5/15/26 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 7.4% 3,075 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/07 at 102.00 Aaa 3,232,009 Single Family Mortgage Revenue Refunding Bonds, GNMA and FNMA Mortgage-Backed Securities Program, Series 1997B-1, 5.750%, 10/01/26 35,700 Louisiana Stadium and Exposition District, Hotel Occupancy 7/06 at 102.00 AAA 40,848,654 Tax Bonds, Series 1996, 5.750%, 7/01/26 (Pre-refunded to 7/01/06) - FGIC Insured 5,630 New Orleans Housing Development Corporation, Louisiana, 6/03 at 100.00 AAA 5,639,177 Multifamily Housing Revenue Refunding Bonds, Series 1990A, Curran Place Apartments - Fannie Mae Collateralized, 7.700%, 8/01/23 6,500 Shreveport, Louisiana, Water and Sewer Revenue Bonds, 6/03 at 103.00 AAA 6,719,310 Series 1986A, 5.950%, 12/01/14 (Pre-refunded to 6/01/03) - FGIC Insured Tobacco Settlement Financing Corporation, Louisiana, Asset-Backed Bonds, Series 2001B: 10,000 5.500%, 5/15/30 5/11 at 101.00 A- 8,082,600 6,250 5.875%, 5/15/39 5/11 at 101.00 A- 4,905,750 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.8% 7,330 Maine State Housing Authority, Mortgage Purchase Bonds, 2/04 at 102.00 AA+ 7,505,040 1994 Series A, 5.700%, 11/15/26 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 2.8% 1,370 Community Development Administration, Maryland Department 9/10 at 100.00 Aa2 1,450,994 of Housing and Community Development, Residential Revenue Bonds, Series H, 5.800%, 9/01/32 (Alternative Minimum Tax) 7,720 Maryland Transportation Authority, Baltimore-Washington 3/12 at 101.00 AAA 8,038,218 International Airport, Parking Revenue Bonds, Series 2002B, 5.125%, 3/01/20 (Alternative Minimum Tax) - AMBAC Insured 7,475 Housing Opportunities Commission of Montgomery County, 7/04 at 102.00 A2 7,718,162 Maryland, Multifamily Housing Revenue Bonds, 1994 Series A, 6.250%, 7/01/28 7,090 City of Takoma Park, Maryland, Hospital Facilities Refunding No Opt. Call AAA 8,655,968 and Improvement Revenue Bonds, Washington Adventist Hospital, Series 1995, 6.500%, 9/01/12 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.3% 2,150 Massachusetts Educational Financing Authority, Education Loan 12/09 at 101.00 AAA 2,387,876 Revenue and Refunding Bonds, Issue G, Series 2000A, 5.700%, 12/01/11 (Alternative Minimum Tax) - MBIA Insured Massachusetts Municipal Wholesale Electric Company, Power Supply System Revenue Bonds, 1987 Series A: 35 8.750%, 7/01/18 (Pre-refunded to 7/01/03) 7/03 at 100.00 Aaa 35,450 70 8.750%, 7/01/18 (Pre-refunded to 1/01/04) 1/04 at 100.00 Aaa 73,548 70 8.750%, 7/01/18 (Pre-refunded to 7/01/04) 7/04 at 100.00 Aaa 76,156 35 8.750%, 7/01/18 (Pre-refunded to 7/01/05) 7/05 at 100.00 Aaa 39,239 35 8.750%, 7/01/18 (Pre-refunded to 7/01/05) 7/05 at 100.00 Aaa 40,448 2,500 Commonwealth of Massachusetts, General Obligation Bonds, 11/12 at 100.00 Aa2 2,615,150 Consolidated Loan, Series 2002C, 5.250%, 11/01/30 5,000 Commonwealth of Massachusetts, General Obligation Bonds, 1/13 at 100.00 AAA 5,349,800 Consolidated Loan, Series 2002E, 5.250%, 1/01/22 - FGIC Insured Massachusetts Development Finance Authority, Revenue Bonds, 100 Cambridge Street Redevelopment, MSRB Project, 2002 Series A: 4,000 5.125%, 8/01/28 - MBIA Insured 2/12 at 100.00 AAA 4,124,880 5,000 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AAA 5,142,000 1,420 Massachusetts Health and Educational Facilities Authority, 7/08 at 101.00 Aaa 1,401,810 Revenue Bonds, Southcoast Health System Obligated Group Issue, Series A, 4.750%, 7/01/27 - MBIA Insured 15 Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS (continued) $ 8,500 Route 3 North Transportation Improvements Association, 6/10 at 100.00 AAA $ 9,761,400 Commonwealth of Massachusetts, Lease Revenue Bonds, Series 2000, 5.375%, 6/15/33 (Pre-refunded to 6/15/10) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 5.4% 17,000 School District of the City of Birmingham, County of Oakland, 11/07 at 100.00 AAA 17,119,850 Michigan, School Building and Site Bonds, Series 1998, 4.750%, 11/01/24 - FSA Insured 3,000 City of Detroit, Michigan, Water Supply System Revenue 7/07 at 101.00 AAA 3,087,120 Bonds, Senior Lien, Series 1997-A, 5.000%, 7/01/21 - MBIA Insured 3,935 Grand Rapids Housing Corporation, Michigan, Multifamily 1/04 at 104.00 AAA 4,084,609 Revenue Refunding Bonds, Series 1992, FHA-Insured Mortgage Loan - Section 8 Assisted Elderly Project, 7.375%, 7/15/41 4,030 City of Hancock Hospital Finance Authority, Michigan, 8/08 at 100.00 AAA 4,150,416 FHA-Insured Mortgage Hospital Revenue Bonds, Portage Health System, Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured 1,000 State Building Authority, Michigan, 2001 Revenue Refunding 10/11 at 100.00 AA+ 1,033,770 Bonds, Series I, Facilities Program, 5.000%, 10/15/24 7,115 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 7,590,495 Bonds, Henry Ford Health System, Series 2003A Refunding, 5.500%, 3/01/16 3,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/09 at 102.00 AAA 3,142,170 Bonds, Detroit Edison Company Pollution Control Project, Collateralized Series 1999A, 5.550%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured 10,000 Charter County of Wayne, Michigan, Detroit Metropolitan 12/08 at 101.00 AAA 10,588,900 Wayne County Airport, Airport Revenue Bonds, Series 1998A, 5.375%, 12/01/16 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 6.9% 7,475 Dakota County Community Development Agency, Minnesota, 2/12 at 102.00 Aaa 7,879,921 Multifamily Senior Housing Revenue Bonds, Series 2002A, GNMA Collateralized Mortgage Loan, Wingate Project, 5.625%, 8/20/43 1,475 Dakota County Housing and Redevelopment Authority, 4/04 at 102.00 AAA 1,491,402 Minnesota, Single Family Mortgage Revenue Bonds, Fannie Mae Mortgage-Backed Securities Program, Series 1994A, 6.900%, 10/01/27 (Alternative Minimum Tax) 3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,151,320 Minnesota, Subordinate Airport Revenue Bonds, Series 2001C, 5.250%, 1/01/26 - FGIC Insured 18,020 Plymouth, Minnesota, Multifamily Senior Housing Revenue 3/12 at 105.00 Aaa 18,547,445 Bonds, Series 2002A, GNMA Collateralized Mortgage Loan, Regent at Plymouth Project, 4.090%, 9/20/43 22,355 Housing and Redevelopment Authority of the City of 11/15 at 103.00 AAA 28,278,404 St. Paul, Minnesota, Sales Tax Revenue Refunding Bonds, Civic Center Project, Series 1996, 7.100%, 11/01/23 - FSA Insured 5,285 Housing and Redevelopment Authority of the City of St. Paul, 3/05 at 102.60 Aaa 5,584,607 Minnesota, Single Family Mortgage Revenue Refunding Bonds, Middle Income Program, Phase II FNMA Mortgage-Backed Securities Program, Series 1995, 6.800%, 3/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.0% 9,750 Mississippi Business Finance Corporation, Pollution Control 10/03 at 102.00 BBB- 9,612,720 Revenue Refunding Bonds, System Energy Resources, Inc. Project, Series 1998, 5.875%, 4/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.5% 2,000 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,056,380 Agency, Metrolink Cross County Extension Project, Mass Transit Sales Tax Appropriation Bonds, Series 2002B, 5.000%, 10/01/32 - FSA Insured 6,350 Kansas City, Missouri, General Improvement Airport Revenue 9/12 at 100.00 AAA 6,944,868 Bonds, Series 2003B, 5.250%, 9/01/17 - FGIC Insured 855 Missouri Housing Development Commission, Single Family 5/03 at 100.00 AAA 856,471 Mortgage Revenue Bonds, GNMA Mortgage-Backed Securities Program, 1988 Series A, 8.300%, 5/01/19 (Alternative Minimum Tax) 3,740 Health and Educational Facilities Authority of Missouri, 6/11 at 101.00 AAA 3,872,059 Revenue Bonds, SSM Health Care, Series 2001A, 5.250%, 6/01/28 - AMBAC Insured 16 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 1.2% $ 2,140 Montana Board of Housing, Single Family Program Bonds, 6/07 at 101.50 AA+ $ 2,248,605 1997 Series A, 6.150%, 6/01/30 (Alternative Minimum Tax) 3,660 Montana Board of Housing, Single Family Program Bonds, 12/09 at 100.00 AA+ 3,928,205 2000 Series A-2, 6.450%, 6/01/29 (Alternative Minimum Tax) 4,795 Montana Higher Education Student Assistance Corporation, 12/08 at 101.00 A2 4,935,446 Student Loan Revenue Bonds, Subordinate Series 1998B, 5.500%, 12/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.4% 3,620 Nebraska Investment Finance Authority, Single Family Housing 9/10 at 100.00 AAA 3,831,806 Revenue Bonds, 2000 Series E, 5.850%, 9/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 2.6% 10,900 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 12,047,007 Series 2002C, 5.500%, 6/15/19 - MBIA Insured 10,505 State of Nevada, General Obligation Bonds, Series 1996A, 5/06 at 101.00 AAA 11,955,425 Municipal Bond Bank Project No. 52, 6.000%, 5/15/21 (Pre-refunded to 5/15/06) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 1.2% New Hampshire Housing Finance Authority, Multifamily Housing Revenue Bonds, 1994 Issue Remarketing, Countryside Limited Partnership - Countryside Project: 3,725 6.000%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 3,959,079 6,945 6.100%, 7/01/24 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 7,361,700 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 4.9% 4,615 Higher Education Student Assistance Authority of the State 6/10 at 101.00 AAA 5,150,755 of New Jersey, Student Loan Revenue Bonds, 2000 Series A, 6.000%, 6/01/13 (Alternative Minimum Tax) - MBIA Insured 3,000 New Jersey Economic Development Authority, Transportation 5/09 at 100.00 AAA 3,290,880 Project Sublease Revenue Bonds, New Jersey Transit Corporation - Light Rail Transit System Projects, 1999 Series A, 5.250%, 5/01/17 - FSA Insured 8,750 New Jersey Transportation Trust Fund Authority, Transportation 6/07 at 102.00 AA- 9,648,625 System Bonds, 1996 Series B, 5.250%, 6/15/16 4,500 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 5,246,955 System Bonds, 2001 Series C, 5.500%, 12/15/18 - FSA Insured 15,000 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 A- 12,788,700 Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 3,125 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 A- 2,769,531 Tobacco Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39 Township of West Deptford, County of Gloucester, New Jersey, General Obligation Bonds, Series of 2000: 3,150 5.500%, 9/01/21 - FGIC Insured 9/10 at 100.00 Aaa 3,498,610 3,335 5.500%, 9/01/22 - FGIC Insured 9/10 at 100.00 Aaa 3,689,210 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 16.9% 12,120 Long Island Power Authority, New York, Electric System 6/03 at 101.00 A- 12,277,802 General Revenue Bonds, Series 1998A, 5.500%, 12/01/29 5 The City of New York, New York, General Obligation Bonds, 8/03 at 100.00 A 5,084 Fiscal 1987 Series D, 8.500%, 8/01/08 12,500 The City of New York, New York, General Obligation Bonds, No Opt. Call A 13,848,500 Fiscal 1997 Series A, 7.000%, 8/01/05 16,295 The City of New York, New York, General Obligation Bonds, 2/06 at 101.50 A 17,697,185 Fiscal 1996 Series F, 5.750%, 2/01/15 20,650 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 22,882,059 Water and Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 - MBIA Insured 4,875 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 5,313,360 Water and Sewer System Revenue Bonds, Fiscal 1997 Series A, 5.500%, 6/15/24 - MBIA Insured 10,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AA 11,195,500 Water and Sewer System Revenue Bonds, Fiscal 2000 Series A, 5.750%, 6/15/30 7,810 New York City Transitional Finance Authority, New York, 8/09 at 101.00 AA+*** 9,252,976 Future Tax Secured Bonds, Fiscal 2000 Series A, 5.750%, 8/15/24 (Pre-refunded to 8/15/09) 17 Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 2,250 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AAA $ 2,449,620 Bonds, State University Dormitory Facilities Issue, Series 1999C, 5.500%, 7/01/29 - MBIA Insured 4,000 Dormitory Authority of the State of New York, Revenue Bonds, 5/03 at 100.00 AA- 4,078,400 State University Educational Facilities, Series 1990B, 6.000%, 5/15/17 1,500 Dormitory Authority of the State of New York, Revenue Bonds, 8/07 at 101.00 AAA 1,557,855 St. Barnabas Hospital, Series 1997, 5.450%, 8/01/35 - AMBAC Insured 2,070 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 2,304,490 Bonds, 853 Schools Program, 1998 Issue 1, Gateway-Longview, Inc., Series 1998A, 5.500%, 7/01/18 - AMBAC Insured 17,000 Dormitory Authority of the State of New York, City University 7/09 at 101.00 AAA 19,858,210 System Consolidated Third General Resolution Revenue Bonds, 1999 Series 1, 5.500%, 7/01/29 (Pre-refunded to 7/01/09) - FSA Insured 3,000 Dormitory Authority of the State of New York, City University 1/08 at 102.00 AAA 3,454,980 System Consolidated Third General Resolution Revenue Bonds, 1997 Series 1, 5.375%, 7/01/24 (Pre-refunded to 1/01/08) - FSA Insured 2,000 Dormitory Authority of the State of New York, Mental Health 2/06 at 102.00 AAA 2,116,060 Services Facilities Improvement Revenue Bonds, Series 1996B, 5.375%, 2/15/26 - MBIA Insured Dormitory Authority of the State of New York, Marymount Manhattan College Insured Revenue Bonds, Series 1999: 1,580 6.375%, 7/01/13 - RAAI Insured 7/09 at 101.00 AA 1,814,314 9,235 6.125%, 7/01/21 - RAAI Insured 7/09 at 101.00 AA 10,267,473 3,000 New York State Energy Research and Development Authority, 9/08 at 102.00 AAA 3,269,820 Pollution Control Revenue Bonds, Rochester Gas and Electric Corporation Project, Series 1998A, 5.950%, 9/01/33 (Alternative Minimum Tax) - MBIA Insured 14,750 New York State Medical Care Facilities Finance Agency, 2/04 at 102.00 AAA 15,465,080 Mental Health Services Facilities Improvement Revenue Bonds, 1993 Series F Refunding, 5.375%, 2/15/14 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.2% 2,000 North Carolina Municipal Power Agency Number 1, Catawba 1/08 at 102.00 AAA 2,077,380 Electric Revenue Bonds, Series 1998A, 5.000%, 1/01/20 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 0.7% 5,800 North Dakota Housing Finance Agency, Housing Finance 7/10 at 100.00 Aa2 6,235,174 Program Bonds, Home Mortgage Finance Program, 2000 Series A Refunding, 6.500%, 1/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 6.0% 7,500 City of Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101.00 AAA 7,650,225 Series 2000A, 5.000%, 1/01/31 - FSA Insured 19,430 Ohio Housing Finance Agency, Residential Mortgage Revenue 7/09 at 100.00 Aaa 20,288,223 Bonds, 1999 Series C, Mortgage-Backed Securities Program, Fixed-Rate, 5.750%, 9/01/30 (Alternative Minimum Tax) 15,500 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 14,250,700 Revenue Bonds, Bay Shore Power Project, Convertible Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) 14,300 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 14,288,131 Revenue Bonds, Bay Shore Power Project, Convertible Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.2% 3,400 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, 12/08 at 100.00 CCC 1,904,850 Revenue Bonds, Refunding Series 2000B, 6.000%, 6/01/35 (Alternative Minimum Tax) (Mandatory put 12/01/08) - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 1.0% 1,460 Oregon Housing and Community Services Department, 1/10 at 100.00 Aa2 1,556,345 Mortgage Revenue Bonds, Single Family Mortgage Program, Series 2000F, 6.250%, 7/01/28 (Alternative Minimum Tax) 9,150 Port of St. Helens, Oregon, Pollution Control Revenue Bonds, No Opt. Call BBB 7,675,569 Portland General Electric Company Project, 1985 Series B, 4.800%, 6/01/10 18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 4.3% Bethlehem Authority, Northampton and Lehigh Counties, Pennsylvania, Guaranteed Water Revenue Bonds, Series 1998: $ 3,125 0.000%, 5/15/22 - FSA Insured No Opt. Call AAA $ 1,220,250 3,125 0.000%, 5/15/23 - FSA Insured No Opt. Call AAA 1,147,906 3,135 0.000%, 5/15/24 - FSA Insured No Opt. Call AAA 1,081,606 3,155 0.000%, 5/15/26 - FSA Insured No Opt. Call AAA 963,663 4,145 0.000%, 11/15/26 - FSA Insured No Opt. Call AAA 1,233,884 2,800 0.000%, 5/15/28 - FSA Insured No Opt. Call AAA 766,332 3,000 0.000%, 11/15/28 - FSA Insured No Opt. Call AAA 797,910 4,730 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 4,945,168 Resource Recovery Revenue Refunding Bonds, 2000 Series, Panther Creek Partners Project, 6.650%, 5/01/10 (Alternative Minimum Tax) 2,720 Cumberland County Municipal Authority, Pennsylvania, 11/04 at 102.00 BBB-*** 2,963,658 Carlisle Hospital and Health Services First Mortgage Revenue and Refunding Bonds, Series 1994, 6.800%, 11/15/14 (Pre-refunded to 11/15/04) 11,000 Delaware County Authority, Pennsylvania, Health System 11/08 at 102.00 AAA 11,342,760 Revenue Bonds, Catholic Health East Issue, Series 1998A, 4.875%, 11/15/18 - AMBAC Insured Pennsylvania Economic Development Finance Authority, Resource Recovery Revenue Bonds, Senior Series 1994A, Northampton Generating Project: 2,100 6.400%, 1/01/09 (Alternative Minimum Tax) 1/04 at 102.00 BBB- 2,140,299 4,500 6.500%, 1/01/13 (Alternative Minimum Tax) 1/04 at 102.00 BBB- 4,557,015 900 Pennsylvania Economic Development Financing Authority, 1/04 at 102.00 N/R 904,266 Resource Recovery Revenue Subordinate Bonds, Series 1994C, Northampton Generating Project, 6.875%, 1/01/11 (Alternative Minimum Tax) 6,250 Pennsylvania Economic Development Financing Authority, No Opt. Call N/R 6,417,750 Resource Recovery Revenue Bonds, Northampton Generating Project, Senior Lien Series 1994B, 6.750%, 1/01/07 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.2% 1,250 Puerto Rico Highway and Transportation Authority, 7/10 at 101.00 AAA 1,444,763 Transportation Revenue Bonds, Series B, 5.875%, 7/01/21 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 0.6% 3,000 Kent County Water Authority, Rhode Island, General Revenue 7/12 at 100.00 AAA 3,113,010 Bonds, Series 2002A, 5.000%, 7/15/23 - MBIA Insured Rhode Island Health and Educational Building Corporation, Revenue Bonds, Salve Regina University, Series 2002 Refunding: 1,260 5.250%, 3/15/17 - RAAI Insured 3/12 at 101.00 AA 1,347,923 1,080 5.250%, 3/15/18 - RAAI Insured 3/12 at 101.00 AA 1,147,176 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 2.8% 6,925 State of South Carolina, General Obligation State Capital 10/09 at 101.00 AAA 7,085,660 Improvement Bonds, Series 1999A, 4.000%, 10/01/14 21,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 A- 18,940,950 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 3.4% 2,260 Health and Educational Facilities Board of Johnson City, 7/23 at 100.00 AAA 2,402,199 Tennessee, Hospital Revenue Refunding and Improvement Bonds, Series 1998C, Johnson City Medical Center Hospital, 5.125%, 7/01/25 (Pre-refunded to 7/01/23) - MBIA Insured 1,700 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 1,856,332 Revenue Bonds, Series 1999D, 6.000%, 3/01/24 (Alternative Minimum Tax) - AMBAC Insured 6,725 Health, Educational and Housing Facility Board of the City 7/03 at 103.00 AAA 6,933,206 of Memphis, Tennessee, Multifamily Mortgage Revenue Refunding Bonds, Riverdale Plaza Apartments Project, Series 1993, 6.350%, 7/20/28 6,000 Health and Educational Facilities Board of the Metropolitan 12/17 at 100.00 AAA 7,172,760 Government of Nashville and Davidson Counties, Tennessee, Revenue Refunding and Improvement Bonds, Meharry Medical College Project, Series 1996, 6.000%, 12/01/19 - AMBAC Insured 12,800 Tennessee Housing Development Agency, Homeownership 7/10 at 101.00 AA 13,982,720 Program Bonds, Issue 2000-1, 6.375% 7/01/25 (Alternative Minimum Tax) 19 Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 4.0% $ 4,000 Bell County Health Facilities Development Corporation, 2/10 at 101.00 AAA $ 4,524,800 Texas, Hospital Revenue Bonds, Scott and White Memorial Hospital and Scott, Sherwood and Brindley Foundation Project, Series 2000A, 6.125%, 8/15/23 - MBIA Insured 5,690 Dallas-Ft. Worth, Texas, International Airport Facilities 11/05 at 100.00 Caa2 2,144,447 Improvement Corporation, Revenue Refunding Bonds, Series 2000B, American Airlines, 6.050%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/05) 1,105 Fort Worth Housing Finance Corporation, Texas, Home 10/03 at 101.00 Aa2 1,130,327 Mortgage Revenue Refunding Bonds, Series 1991A, 8.500%, 10/01/11 1,500 Harris County, Texas, Health Facilities Development 7/09 at 101.00 AAA 1,552,155 Corporation, Revenue Bonds, Christus Health, Series 1999A, 5.375%, 7/01/24 - MBIA Insured 195 Hidalgo County Housing Finance Corporation, Texas, Single 4/04 at 102.00 Aaa 200,212 Family Mortgage Revenue Bonds, GNMA and FNMA Collateralized, Series 1994A, 6.750%, 10/01/15 (Alternative Minimum Tax) 3,885 Houston Independent School District Public Facility No Opt. Call AAA 1,752,795 Corporation, Harris County, Texas, Lease Revenue Bonds, Cesar E. Chavez High School, Series 1998A, 0.000%, 9/15/19 - AMBAC Insured 1,690 City of Laredo, Webb County, Texas, Combination Tax and 2/08 at 100.00 AAA 1,709,874 Sewer System Revenue Certificates of Obligation, Series 1998A, 4.500%, 2/15/18 - MBIA Insured Leander Independent School District, Williamson and Travis Counties, Texas, Unlimited Tax School Building and Refunding Bonds, Series 1998: 4,930 0.000%, 8/15/20 8/06 at 46.47 AAA 1,935,272 3,705 0.000%, 8/15/22 8/06 at 41.33 AAA 1,287,265 1,115 Lubbock Housing Finance Corporation, Texas, Single Family 6/07 at 102.00 AAA 1,157,571 Mortgage Revenue Refunding Bonds, GNMA Mortgage-Backed Securities Program, Series 1997A, 6.125%, 12/01/17 3,480 Pearland, Texas, General Obligation Bonds, Series 2002, 3/12 at 100.00 AAA 3,562,406 5.000%, 3/01/27 - FGIC Insured 6,050 City of San Antonio, Texas, Electric and Gas Systems Revenue 2/09 at 100.00 AA+ 6,016,665 Bonds, New Series 1998A Refunding, 4.500%, 2/01/21 6,000 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 6,178,200 Texas, Limited Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%, 2/01/26 4,000 Tarrant Regional Water District, Texas, Water Revenue Bonds, 3/13 at 100.00 AAA 4,165,400 Series 1999 Refunding and Improvement, 5.000%, 3/01/22 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 4.6% 10,000 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 11,248,100 Refunding Bonds, 1997 Series B, 5.750%, 7/01/19 - MBIA Insured Utah County, Utah, Hospital Revenue Bonds, Series 1997, IHC Health Services, Inc.: 12,500 5.250%, 8/15/21 - MBIA Insured 8/07 at 101.00 AAA 12,844,375 3,900 5.250%, 8/15/26 - MBIA Insured 8/07 at 101.00 AAA 3,976,284 4,495 Utah Housing Corporation, Single Family Mortgage Bonds, 1/12 at 100.00 AA- 4,713,637 2002 Series A1, 5.300%, 7/01/18 (Alternative Minimum Tax) 780 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100.00 AA 811,871 2000 Series B, 6.250%, 7/01/22 (Alternative Minimum Tax) 2,975 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 3,218,534 2000 Series D-1, 6.050%, 7/01/14 (Alternative Minimum Tax) 3,310 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 Aa1 3,616,208 2000 Series E-1, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax) 740 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 768,246 2000 Series E-1, Class II, 6.150%, 1/01/27 (Alternative Minimum Tax) 1,270 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/11 at 100.00 AA 1,321,257 2001 Series A2, 5.650%, 7/01/27 (Alternative Minimum Tax) 970 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/11 at 100.00 Aa2 1,034,233 2001 Series B-1, 5.750%, 7/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 0.8% 7,125 Vermont Housing Finance Agency, Single Family Housing 11/04 at 102.00 A+ 7,379,220 Bonds, Series 5, 7.000%, 11/01/27 (Alternative Minimum Tax) 20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.8% $ 16,000 Metropolitan Washington Airports Authority, Virginia, Airport 10/04 at 100.00 AAA $16,661,760 System Revenue Bonds, Series 1994A, 5.500%, 10/01/24 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 5.8% 12,235 Public Utility District No. 1 of Chelan County, Washington, No Opt. Call AAA 3,600,026 Columbia River-Rock Island Hydro-Electric System Revenue Refunding Bonds, Series 1997A, 0.000%, 6/01/26 - MBIA Insured 5,000 Energy Northwest, Washington, Nuclear Project No. 1 Electric 7/13 at 100.00 Aa1 5,561,650 Revenue Bonds, Series 2003A Refunding, 5.500%, 7/01/16 1,815 Grant County Public Utility District 2, Wanapum, Washington, 1/06 at 102.00 AAA 1,986,899 Hydro-Electric Revenue Bonds, Series 1997A, Master Lease Program, 5.625%, 1/01/26 - MBIA Insured 12,000 State of Washington, Motor Vehicle Fuel Tax General Obligation 1/11 at 100.00 AA+ 12,502,440 Bonds, Series 2001D, 5.250%, 1/01/26 5,000 Washington State Housing Finance Commission, Nonprofit 7/09 at 101.00 AA 5,527,900 Housing Revenue Bonds, Kline Galland Center Project, Series 1999, 6.000%, 7/01/29 - RAAI Insured 4,500 Washington Health Care Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 4,760,865 Series 1999, Providence Services, 5.375%, 12/01/19 - MBIA Insured 16,000 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102.00 AAA 16,428,960 Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 - MBIA Insured 4,000 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102.00 Aa1 4,088,600 Refunding Revenue Bonds, Series 1993B, 5.700%, 7/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.3% 1,660 Wisconsin Health and Educational Facilities Authority, Revenue 8/03 at 102.00 AAA 1,678,592 Bonds, Series 1993, Aurora Health Care Obligated Group, 5.250%, 8/15/23 - MBIA Insured 11,620 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 101.00 AA 12,981,864 Bonds, Series 1999, Marshfield Clinic, 6.250%, 2/15/29 - RAAI Insured 7,490 Wisconsin Health and Educational Facilities Authority, Revenue 7/08 at 103.00 N/R 6,866,233 Bonds, Series 1998, The Millennium Housing Foundation, Inc. Project, 6.100%, 1/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,448,295 Total Long-Term Investments (cost $1,289,105,632) - 147.8% 1,388,422,698 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.7% 4,750 North Central Texas Health Facilities Development Corporation, A-1+ 4,750,000 Hospital Revenue Bonds, Series 1985-B, Methodist Hospitals of Dallas, Variable Rate Demand Bonds, 1.350%, 10/01/15 - MBIA Insured+ 2,000 Ohio Higher Educational Facilities Revenue Bonds, Case VMIG-1 2,000,000 Western Reserve University Project, Series 2002A, Variable Rate Demand Obligations, 1.400%, 10/01/31+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 6,750 Total Short-Term Investments (cost $6,750,000) 6,750,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $1,295,855,632) - 148.5% 1,395,172,698 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.5% 23,379,504 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.0)% (479,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $939,552,202 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 21
Nuveen Municipal Advantage Fund, Inc. (NMA) Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 3.2% $ 10,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101.00 AAA $11,489,100 Warrants, Series 1999A, 5.375%, 2/01/36 (Pre-refunded to 2/01/09) - FGIC Insured 5,075 Health Care Authority of Florence, Lauderdale County, Alabama, 7/09 at 101.00 AAA 5,246,535 Revenue Bonds, Series 1999A, Coffee Health Group, 5.250%, 7/01/24 - MBIA Insured 5,155 Phenix City, Alabama, Industrial Development Board 5/12 at 100.00 BBB 5,152,680 Environmental Improvement Revenue Bonds, MeadWestvaco Project, Series 2002A, 6.350%, 5/15/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.7% 5,000 Maricopa County Pollution Control Corporation, Arizona, 5/06 at 101.00 BBB- 4,968,150 Pollution Control Revenue Refunding Bonds, Remarketing, Series 1992A, Public Service Company of New Mexico, 5.750%, 11/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 5.8% 2,500 State of California Department of Water Resources, Power 5/12 at 101.00 A3 2,626,300 Supply Revenue Bonds, Series 2002A, 5.375%, 5/01/22 7,535 County of Contra Costa, California, Home Mortgage No Opt. Call AAA 10,350,679 Revenue Bonds, GNMA Mortgage-Backed Securities Program, Series 1989, 7.750%, 5/01/22 (Alternative Minimum Tax) 5,000 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 6,502,200 California, Residential Mortgage Revenue Refunding Bonds, Series 1991B, 7.375%, 2/01/12 5,000 Community Redevelopment Agency of the City of Palmdale, No Opt. Call AAA 7,007,700 California, Single Family Mortgage Revenue Bonds, Series 1986A Restructured, 8.000%, 3/01/16 (Alternative Minimum Tax) 9,315 City of Perris, California, Single Family Mortgage Revenue No Opt. Call AAA 12,734,723 Bonds, GNMA Mortgage-Backed Securities, 1989 Series A, 7.600%, 1/01/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 2.4% 8,350 Colorado Health Facilities Authority, Revenue Bonds, 7/06 at 102.00 A 8,617,534 1994 Series A, Kaiser Permanente, Remarketed, 5.350%, 11/01/16 Platte River Power Authority, Colorado, Power Revenue Bonds, Series EE Refunding: 2,000 5.375%, 6/01/17 6/12 at 100.00 AA- 2,214,940 5,000 5.375%, 6/01/18 6/12 at 100.00 AA- 5,501,250 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.8% 5,000 Connecticut Housing Finance Authority, Housing Mortgage 11/09 at 100.00 AAA 5,309,950 Finance Program Bonds, 2000 Series B, Subseries B-2, 5.750%, 11/15/21 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.7% 6,300 District of Columbia Housing Finance Agency, Collateralized 12/04 at 103.00 AAA 6,489,567 Single Family Mortgage Revenue Bonds, Series 1988F-1, 6.375%, 6/01/26 (Alternative Minimum Tax) 5,075 District of Columbia Housing Finance Agency, Single Family 6/07 at 102.00 AAA 5,321,087 Revenue Bonds, Series 1997-B, 5.900%, 12/01/28 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.9% 2,770 Florida Housing Finance Corporation, Housing Revenue Bonds, 12/10 at 100.00 AAA 2,941,408 2000 Series O-1, Stratford Point Apartments, 5.850%, 12/01/31 (Alternative Minimum Tax) - FSA Insured 9,990 City of Tampa, Florida, Allegany Health System Revenue Bonds, 12/03 at 102.00 AAA 10,148,941 St. Mary's Hospital, Inc. Issue, Series 1993, 5.125%, 12/01/23 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.2% 7,335 Georgia Housing and Finance Authority, Single Family Mortgage 3/10 at 100.00 AAA 7,928,842 Bonds, 2000 Series A, Subseries A-2, 6.450%, 12/01/30 (Alternative Minimum Tax) 22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.9% $ 3,660 Housing Finance and Development Corporation, Hawaii, Single 7/07 at 102.00 AAA $ 3,811,780 Family Mortgage Purchase Revenue Bonds, 1997 Series A, 5.750%, 7/01/30 (Alternative Minimum Tax) 2,215 Housing and Community Development Corporation of Hawaii, 7/10 at 102.00 AAA 2,353,305 Multifamily Housing Revenue Bonds, Series 2000, GNMA Collateralized - Sunset Villas, 5.700%, 7/20/31 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 13.6% 5,865 City of Chicago, Illinois, General Obligation Bonds, 7/10 at 101.00 AAA 7,195,475 Neighborhoods Alive 21 Program, Series 2000A, 6.500%, 1/01/35 (Pre-refunded to 7/01/10) - FGIC Insured 4,000 Chicago School Reform Board of Trustees of the Board of 12/07 at 102.00 AAA 4,522,960 Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1997, 5.750%, 12/01/20 - AMBAC Insured 12,500 Chicago School Reform Board of Trustees of the Board of 12/07 at 102.00 AAA 13,116,625 Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1997A, 5.250%, 12/01/27 - AMBAC Insured 5,000 City of Chicago, Illinois, Chicago O'Hare International Airport, No Opt. Call Ca 1,287,500 Special Facility Revenue Bonds, United Air Lines, Inc. Project, Series 2001A, 6.375%, 11/01/35 (Alternative Minimum Tax) (Mandatory put 5/01/13)# 5,000 City of Chicago, Illinois, Chicago O'Hare International Airport, 1/11 at 101.00 AAA 5,138,750 Second Lien Passenger Facility Charge Revenue Bonds, Series 2001A, 5.375%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured 5,000 City of Chicago, Illinois, Second Lien Wastewater Transmission 1/08 at 102.00 AAA 5,239,800 Revenue Bonds, Series 1997, 5.250%, 1/01/28 - AMBAC Insured 10,115 Illinois Health Facilities Authority, Revenue Refunding Bonds, 11/06 at 102.00 AAA 11,555,781 Series 1996A, Rush-Presbyterian-St. Luke's Medical Center Obligated Group, 6.250%, 11/15/20 - MBIA Insured 6,165 Illinois Health Facilities Authority, Revenue Refunding Bonds, 2/07 at 102.00 A 6,327,509 Series 1996B, Sarah Bush Lincoln Health Center, 5.750%, 2/15/22 3,935 Illinois Health Facilities Authority, Revenue Bonds, Victory 8/07 at 101.00 A- 3,981,590 Health Service, Series 1997A, 5.375%, 8/15/16 6,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 A3 6,246,480 Medical Center, Series 2002, 5.750%, 5/15/22 Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project Bonds, Series 1999A: 12,455 5.500%, 12/15/24 - FGIC Insured 12/09 at 101.00 AAA 13,494,121 10,000 5.250%, 12/15/28 - FGIC Insured 12/09 at 101.00 AAA 10,488,900 2,500 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,380,475 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1990A, 7.200%, 11/01/20 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 5.2% 7,425 Fort Wayne International Airport Building Corporation, 1/04 at 101.00 Aa3 7,566,298 Indiana, Airport Improvement Bonds, Series 1994, 5.900%, 1/01/14 (Alternative Minimum Tax) 5,205 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 5,472,953 Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30 - MBIA Insured 9,000 Indiana Health Facility Financing Authority, Hospital Revenue 5/06 at 102.00 AAA 9,715,320 Refunding and Improvement Bonds, Series 1995, Community Hospitals Projects, 5.700%, 5/15/22 - MBIA Insured 6,075 LaGrange County Jail Building Corporation, Indiana ,First 10/09 at 101.00 A3 6,334,949 Mortgage Jail Bonds, Series 1998, 5.400%, 10/01/21 3,215 Mooresville Consolidated School Building Corporation, 1/04 at 102.00 N/R*** 3,398,737 Morgan County, Indiana, First Mortgage Bonds, Series 1994B, 6.400%, 7/15/15 (Pre-refunded to 1/15/04) 2,725 St. Joseph County Hospital Authority, Indiana, Health System 2/09 at 102.00 BBB 2,739,361 Revenue Bonds, Madison Center, Inc. Project, Series 1999, 5.450%, 2/15/12 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.5% 2,455 Iowa Finance Authority, Single Family Mortgage Bonds, 1/05 at 102.00 AAA 2,558,061 1995 Series C, 6.450%, 1/01/24 3,500 City of Marshalltown, Iowa, Pollution Control Revenue 11/03 at 102.00 AAA 3,636,605 Refunding Bonds, Iowa Electric Light and Power Company Project, Series 1993, 5.500%, 11/01/23 - MBIA Insured 5,000 Tobacco Settlement Authority, Iowa, Tobacco Settlement 6/11 at 101.00 A- 3,787,350 Asset-Backed Revenue Bonds, Series 2001B, 5.600%, 6/01/35 23 Nuveen Municipal Advantage Fund, Inc. (NMA) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.8% $ 5,000 Burlington, Kansas, Environmental Improvement Revenue No Opt. Call A2 $ 5,171,650 Bonds, Kansas City Power and Light Company Project, Series 1998A, 4.750%, 9/01/15 (Mandatory put 10/01/07) - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.6% 5,500 Louisville and Jefferson Counties Metropolitan Sewer District, 5/07 at 101.00 AAA 5,790,235 Commonwealth of Kentucky, Sewer and Drainage System Revenue Bonds, Series 1997A, 5.250%, 5/15/27 - MBIA Insured 4,950 Louisville and Jefferson Counties Metropolitan Sewer District, 11/07 at 101.00 AAA 5,125,478 Commonwealth of Kentucky, Sewer and Drainage System Revenue Bonds, Series 1997B, 5.200%, 5/15/25 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 6.2% 13,500 Parish of De Soto, State of Louisiana, Pollution Control Revenue 9/09 at 102.00 AAA 15,385,410 Refunding Bonds, Cleco Utility Group, Inc. Project, Series 1999, 5.875%, 9/01/29 - AMBAC Insured 10,000 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 12,681,700 Revenue Bonds, Comm-Care Corporation Project, Series 1994, 11.000%, 2/01/14 Tobacco Settlement Financing Corporation, Louisiana, Asset-Backed Bonds, Series 2001B: 6,000 5.500%, 5/15/30 5/11 at 101.00 A- 4,849,560 11,750 5.875%, 5/15/39 5/11 at 101.00 A- 9,222,810 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.1% 5,000 Commonwealth of Massachusetts, General Obligation Bonds, 8/12 at 100.00 AAA 5,432,250 Consolidated Loan of 2002, Series D, 5.375%, 8/01/21 - MBIA Insured 1,750 Massachusetts Health and Educational Facilities Authority, 1/09 at 101.00 AAA 1,771,000 Revenue Bonds, UMass Memorial Health Issue A, 5.000%, 7/01/28 - AMBAC Insured 9,585 Massachusetts Housing Finance Agency, Single Family Housing 12/09 at 100.00 AAA 10,458,098 Revenue Bonds, Series 77, 5.950%, 6/01/25 (Alternative Minimum Tax) - FSA Insured 3,320 Massachusetts Housing Finance Agency, Single Family Housing 12/09 at 100.00 AAA 3,510,601 Revenue Bonds, Series 79, 5.950%, 12/01/27 (Alternative Minimum Tax) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.3% 3,275 Michigan State Hospital Finance Authority, Revenue and 8/03 at 102.00 BBB- 2,921,890 Refunding Bonds, Detroit Medical Center Obligated Group, Series 1993A, 6.500%, 8/15/18 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Detroit Medical Center Obligated Group, Series 1998A: 4,995 5.250%, 8/15/23 8/08 at 101.00 BBB- 3,589,707 3,000 5.250%, 8/15/28 8/08 at 101.00 BBB- 2,080,440 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 2.3% 5,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 5,229,100 Minnesota, Subordinate Airport Revenue Bonds, Series 2001C, 5.250%, 1/01/32 - FGIC Insured 5,890 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 6,123,067 Bonds, 2000 Series C, 5.550%, 7/01/24 (Alternative Minimum Tax) 3,685 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 100.00 AA+ 3,952,973 Revenue Bonds, 2000 Series J, 5.400%, 1/01/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.7% 2,165 Coahoma-Clarksdale Housing Development Corporation, 8/03 at 100.00 AAA 2,175,089 Mississippi, Multifamily Mortgage Revenue Refunding Bonds, Gooden Estates and McLaurin Arms Project, Series 1990A, 8.000%, 8/01/24 2,695 Coahoma-Clarksdale Housing Development Corporation, 8/03 at 100.00 AAA 2,707,559 Mississippi, Multifamily Mortgage Revenue Refunding Bonds, Gooden Estates and McLaurin Arms Project, Series 1990B, 8.000%, 8/01/24 2,460 Greenwood-Leflore Housing Development Corporation, 8/03 at 100.00 AA 2,472,989 Mississippi, Multifamily Mortgage Revenue Refunding Bonds, Bishop Apartment Project, Series 1990B, 7.950%, 8/01/22 2,515 Greenwood-Leflore Housing Development Corporation, 6/03 at 100.00 AA 2,519,401 Mississippi, Multifamily Mortgage Revenue Refunding Bonds, Jones Apartment Projects, Series 1990C, 7.950%, 8/01/22 1,575 Greenwood-Leflore Housing Development Corporation, 9/03 at 100.00 AA 1,586,198 Mississippi, Multifamily Mortgage Revenue Refunding Bonds, McNeace Apartment Projects, Series 1990A, 7.950%, 8/01/22 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.4% $ 1,500 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA $ 1,542,285 Agency, Metrolink Cross County Extension Project, Mass Transit Sales Tax Appropriation Bonds, Series 2002B, 5.000%, 10/01/32 - FSA Insured 1,350 Missouri Housing Development Commission, Single Family 9/09 at 102.00 AAA 1,446,269 Mortgage Revenue Bonds, Homeownership Loan Program, 2000 Series A-1, 7.500%, 3/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 2.9% 11,730 Montana Board of Housing, Single Family Program Bonds, 12/05 at 102.00 AA+ 12,295,151 1995 Series B, Federally Insured or Guaranteed Mortgage Loan, 6.400%, 12/01/27 (Alternative Minimum Tax) 6,920 Montana Board of Housing, Single Family Program Bonds, 6/07 at 101.50 AA+ 7,291,258 1997 Series A, 6.050%, 12/01/37 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 4.1% 7,310 Clark County, Nevada, General Obligation Limited Tax Bond 7/10 at 100.00 AA 8,090,343 Bank Bonds, Series 2000, 5.500%, 7/01/19 7,500 Clark County, Nevada, Airport System Subordinate Lien Revenue 7/10 at 101.00 AAA 8,956,425 Bonds, Series 1999A, 6.000%, 7/01/29 (Pre-refunded to 7/01/10) - MBIA Insured 7,000 Director of the State of Nevada, Department of Business 1/10 at 100.00 AAA 7,422,310 and Industry, Revenue Bonds, Las Vegas Monorail Project, 1st Tier Series 2000, 5.375%, 1/01/40 - AMBAC Insured 3,065 Nevada Housing Division, Single Family Mortgage Bonds, 4/07 at 102.00 Aaa 3,163,969 1997 Senior Series C-2, 5.750%, 4/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.6% 2,615 Business Finance Authority of the State of New Hampshire, 12/04 at 102.00 AAA 2,834,137 Water Facility Revenue Bonds, Pennichuck Water Works, Inc., 1994 Issue, Series A, 6.350%, 12/01/19 - AMBAC Insured 1,435 Business Finance Authority of the State of New Hampshire, 12/04 at 102.00 AAA 1,557,477 Water Facility Revenue Bonds, Pennichuck Water Works, Inc., Series B, 6.450%, 12/01/16 (Alternative Minimum Tax) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.0% 16,000 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 A- 13,641,280 Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.1% 7,500 City of Farmington, New Mexico, Pollution Control Revenue 4/06 at 101.00 BBB- 7,406,325 Refunding Bonds, Series 1997B, Public Service Company of New Mexico - San Juan Project, 5.800%, 4/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 16.4% 7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 7,211,190 Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29 County of Nassau, New York, General Obligation Serial General Improvement Bonds, Series F: 3,980 7.000%, 3/01/11 - FSA Insured 3/10 at 100.00 AAA 4,836,894 4,070 7.000%, 3/01/12 - FSA Insured 3/10 at 100.00 AAA 4,974,883 3,925 7.000%, 3/01/15 -FSA Insured 3/10 at 100.00 AAA 4,770,838 The City of New York, New York, General Obligation Bonds, Fiscal 1997 Series G: 95 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101.00 Aaa 111,541 9,905 6.000%, 10/15/26 10/07 at 101.00 A 10,503,955 The City of New York, New York, General Obligation Bonds, Fiscal 1991 Series B: 6,515 9.500%, 6/01/03 No Opt. Call A2*** 6,561,713 1,485 9.500%, 6/01/03 No Opt. Call A 1,495,647 7,435 The City of New York, New York, General Obligation Bonds, 5/10 at 101.00 A 7,949,576 Fiscal 2000 Series E, 5.750%, 5/15/20 9,750 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 10,983,570 Water and Sewer System Revenue Bonds, Fiscal 2000 Series A, 5.750%, 6/15/31 - FGIC Insured 5,000 New York City Municipal Water Finance Authority, New York, 6/07 at 101.00 AAA 5,617,350 Water and Sewer System Revenue Bonds, Fiscal 1997 Series B, 5.750%, 6/15/29 - FGIC Insured 10,000 New York City Transitional Finance Authority, New York, Future 5/10 at 101.00 AA+*** 11,988,700 Tax Secured Bonds, Fiscal 2000 Series B, 6.000%, 11/15/29 (Pre-refunded to 5/15/10) 4,975 New York City Industrial Development Agency, New York, 12/08 at 102.00 BBB- 3,098,530 Special Facilities Revenue Bonds, British Airways PLC Project, Series 1998, 5.250%, 12/01/32 (Alternative Minimum Tax) 25 Nuveen Municipal Advantage Fund, Inc. (NMA) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 3,000 New York City Industrial Development Agency, New York, 12/12 at 101.00 BBB- $ 2,288,760 Special Facilities Revenue Bonds, British Airways PLC Project, Series 2002, 7.625%, 12/01/32 3,655 Dormitory Authority of the State of New York, State University 5/08 at 101.00 AA-*** 4,165,348 Educational Facilities Revenue Bonds, Series 1997, 5.125%, 5/15/27 (Pre-refunded to 5/15/08) Dormitory Authority of the State of New York, Mental Health Services Facilities Improvement Revenue Bonds, Series 1997B: 45 5.625%, 2/15/21 (Pre-refunded to 2/15/07) 2/07 at 102.00 AA-*** 51,770 7,315 5.625%, 2/15/21 2/07 at 102.00 AA- 7,739,051 9,495 State of New York Mortgage Agency, Homeowner Mortgage 4/10 at 100.00 Aa1 10,174,937 Revenue Bonds, Series 94, 5.800%, 10/01/20 (Alternative Minimum Tax) 5,000 New York State Urban Development Corporation, Correctional 1/09 at 101.00 AAA 5,923,550 Facilities Service Contract Revenue Bonds, Series C, 6.000%, 1/01/29 (Pre-refunded to 1/01/09) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 4.7% 10,920 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 11,606,322 Revenue Bonds, Series 7A, 1998 Trust Agreement, 6.250%, 1/01/29 (Alternative Minimum Tax) 10,940 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100.00 AA 11,781,833 Revenue Bonds, Series 8-A, 1998 Trust Agreement, 5.950%, 1/01/27 (Alternative Minimum Tax) 6,000 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100.00 AA 6,320,220 Revenue Bonds, Series 9A, 1998 Trust Agreement, 5.875%, 7/01/31 (Alternative Minimum Tax) 1,710 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA 1,759,795 Program Bonds, Series 10A, 1998 Trust Agreement, 5.400%, 7/01/32 (Alternative Minimum Tax) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 0.8% 5,495 North Dakota Housing Finance Agency, Home Mortgage Finance 7/08 at 102.00 Aaa 5,675,126 Program Bonds, Housing Finance Program, 1998 Series B, 5.500%, 7/01/29 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 5.7% 5,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 4,713,350 Ohio, Hospital Facilities Revenue Bonds, Series 1998A, Summa Health System Project, 5.375%, 11/15/18 6,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds, University 7/09 at 101.00 AAA 6,418,080 Hospitals Health System, Inc., Series 1999, 5.500%, 1/15/30 - AMBAC Insured County of Montgomery, Ohio, Hospital Facilities Revenue Bonds, Series 1999, Kettering Medical Center Network Obligated Group: 7,840 6.750%, 4/01/18 4/10 at 101.00 BBB+ 8,571,707 5,000 6.750%, 4/01/22 4/10 at 101.00 BBB+ 5,376,300 3,105 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100.00 Aaa 3,225,598 Bonds, 2000 Series D, Mortgage-Backed Securities Program, 5.450%, 9/01/31 (Alternative Minimum Tax) 10,000 Ohio Air Quality Development Authority, Pollution Control 12/04 at 100.00 Baa2 10,221,000 Revenue Refunding Bonds, Series 1999C, Ohio Edison Company Project, 5.800%, 6/01/16 (Mandatory put 12/01/04) - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.6% 5,000 Oklahoma Industries Authority, Health System Revenue and 8/09 at 101.00 AAA 5,427,200 Refunding Bonds, Obligated Group consisting of INTEGRIS Baptist Medical Center, Inc., INTEGRIS South Oklahoma City Hospital Corporation and INTEGRIS Rural Health, Inc., Series 1999A, 5.750%, 8/15/29 - MBIA Insured 10,000 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, 12/08 at 100.00 CCC 5,652,700 Revenue Bonds, Refunding Series 2001B, American Airlines, Inc., 5.650%, 12/01/35 (Alternative Minimum Tax) (Mandatory put 12/01/08) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.7% 3,335 Pennsylvania Housing Finance Agency, Rental Housing Refunding 7/03 at 102.00 AAA 3,408,703 Bonds, Issue 1993, 5.800%, 7/01/18 2,500 The School District of Philadelphia, Pennsylvania, General 2/12 at 100.00 AAA 2,683,725 Obligation Bonds, Series 2002A, 5.500%, 2/01/31 - FSA Insured 4,325 Venango Housing Corporation, Pennsylvania, Multifamily 8/03 at 100.00 AAA 4,343,381 Mortgage Revenue Refunding Bonds, FHA-Insured Mortgage - Evergreen Arbors Project, 1990 Series A, 8.000%, 2/01/24 6,750 Washington County Authority, Pennsylvania, Capital Funding No Opt. Call AAA 8,139,015 Revenue Bonds, Capital Projects and Equipment Acquisition Program, Series 1999, 6.150%, 12/01/29 - AMBAC Insured 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 2.7% Housing Authority of the City of Providence, Rhode Island, Multifamily Mortgage Revenue Bonds, FHA-Insured Mortgage Loan - Cathedral Square Apartments II Project, 1992 Series: $ 395 7.375%, 4/01/10 (Alternative Minimum Tax) 4/07 at 100.00 AAA $ 411,278 1,060 7.400%, 4/01/20 (Alternative Minimum Tax) 4/07 at 100.00 AAA 1,103,725 3,050 7.500%, 10/01/32 (Alternative Minimum Tax) 4/07 at 100.00 AAA 3,176,362 12,250 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA 13,293,823 Hospital Financing Revenue Bonds, Lifespan Obligated Group Issue, Series 1996, 5.500%, 5/15/16 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 3.0% 10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 11,284,900 Purchase Revenue Bonds, Series 2002, 6.000%, 12/01/20 2,500 Lexington County Health Services District, South Carolina, 11/13 at 100.00 A 2,619,475 Hospital Revenue Bonds, Series 2003 Refunding and Improvement, 5.750%, 11/01/28 7,500 Tobacco Settlement Revenue Management Authority, South 5/11 at 101.00 A- 6,444,075 Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 5.6% 6,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa2 6,261,120 Tennessee, Hospital Facilities Revenue Bonds, Baptist Health System of East Tennessee, Series 2002, 6.500%, 4/15/31 20,415 Knox County Health, Educational and Housing Facility Board, 1/13 at 75.87 AAA 9,791,034 Tennessee, Hospital Revenue Bonds, Covenant Health, Series 2002A Refunding, 0.000%, 1/01/18 - FSA Insured 1,750 Metropolitan Government of Nashville and Davidson Counties, 5/11 at 100.00 AA 1,813,157 Tennessee, Electric System Revenue Bonds, Series 2001A, 5.125%, 5/15/26 14,385 Health and Educational Facilities Board of the Metropolitan 11/09 at 101.00 AAA 17,117,862 Government of Nashville and Davidson Counties, Tennessee, Revenue Bonds, Ascension Health Credit Group, Series 1999A, 5.875%, 11/15/28 (Pre-refunded to 11/15/09) - AMBAC Insured 2,745 Tennessee Housing Development Agency, Mortgage Finance 7/04 at 102.00 AA 2,850,298 Program Bonds, 1994 Series A, 6.900%, 7/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 15.0% 14,900 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call BBB 14,548,360 Refunding Bonds, TXU Electric Company Project, Series 2001C, 5.750%, 5/01/36 (Alternative Minimum Tax) (Mandatory put 11/01/11) 6,000 Brazos River Authority, Texas, Revenue Refunding Bonds, No Opt. Call AAA 6,452,460 Houston Lighting & Power Company Project, Series 1998, 5.050%, 11/01/18 (Alternative Minimum Tax) - AMBAC Insured 8,400 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/09 at 101.00 BBB 7,598,808 Revenue Bonds, Valero Energy Corporation Project, Series 1999, 5.700%, 4/01/32 (Alternative Minimum Tax) 10,000 Harris County Health Facilities Development Corporation, 5/06 at 102.00 AAA 11,137,600 Texas, Special Facilities Revenue Bonds, Texas Medical Center Project, Series 1996, 5.900%, 5/15/16 - MBIA Insured 12,500 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 13,360,625 Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured City of Houston, Texas, Water Conveyance System Contract, Certificates of Participation, Series 1993 A-J: 5,490 6.800%, 12/15/10 - AMBAC Insured No Opt. Call AAA 6,725,964 2,000 6.800%, 12/15/11 - AMBAC Insured No Opt. Call AAA 2,466,460 16,305 Matagorda County, Texas, Navigation District No. 1 Revenue 5/09 at 101.00 BBB- 13,437,114 Refunding Bonds, Reliant Energy Project, Series 1999B, 5.950%, 5/01/30 (Alternative Minimum Tax) 3,425 Sabine River Authority of Texas, Pollution Control Revenue No Opt. Call BBB 3,348,486 Refunding Bonds, TXU Electric Company Project, Series 2001A, 5.500%, 5/01/22 (Mandatory put 11/01/11) 4,700 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 Baa2 4,770,265 System Revenue Refunding Bonds, Series 2002A, 6.000%, 10/01/21 4,000 State of Texas, General Obligation Bonds, Water Financial 8/09 at 100.00 Aa1 4,309,520 Assistance, Series 1999C, State Participation Program, 5.500%, 8/01/35 6,840 Travis County, Texas, Health Facilities Development Corporation, 11/09 at 101.00 AAA 8,139,463 Revenue Bonds, Ascension Health Credit Group, Series 1999A, 5.875%, 11/15/24 (Pre-refunded to 11/15/09) - AMBAC Insured 27 Nuveen Municipal Advantage Fund, Inc. (NMA) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 2,500 Trinity River Authority of Texas, Pollution Control Revenue No Opt. Call Baa2 $ 2,495,225 Refunding Bonds, TXU Electric Company Project, Series 2001A, 5.000%, 5/01/27 (Alternative Minimum Tax) (Mandatory put 11/01/06) 245 The Wood Glen Housing Finance Corporation, Texas, Mortgage 7/03 at 100.00 AAA 245,899 Revenue Refunding Bonds, Series 1990A, FHA-Insured Mortgage Loan - Section 8 Assisted Copperwood I Project, 7.625%, 1/01/10 - MBIA Insured The Wood Glen Housing Finance Corporation, Texas, Mortgage Revenue Refunding Bonds, Series 1990C, FHA-Insured Mortgage Loan - Section 8 Assisted Copperwood II Project: 225 7.625%, 1/01/10 - MBIA Insured 7/03 at 100.00 AAA 225,767 1,250 7.650%, 7/01/23 - MBIA Insured 7/03 at 100.00 AAA 1,254,300 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.0% 6,380 Capital Region Airport Commission, Richmond, Virginia, 7/05 at 102.00 AAA 6,992,097 International Airport Projects, Airport Revenue Bonds, Series 1995A, 5.625%, 7/01/20 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 14.6% 8,810 Public Utility District No. 1 of Chelan County, Washington, 7/11 at 101.00 AAA 9,272,437 Chelan Hydro-Consolidated System Revenue Bonds, Series 2001A, 5.600%, 1/01/36 (Alternative Minimum Tax) - MBIA Insured 10,730 Public Utility District No. 1 of Chelan County, Washington, 7/11 at 101.00 AAA 11,360,924 Chelan Hydro-Consolidated System Revenue Bonds, Series 2001C Refunding, 5.650%, 7/01/32 (Alternative Minimum Tax) - MBIA Insured 5,665 Public Utility District No. 1 of Chelan County, Washington, 7/12 at 100.00 AAA 5,750,655 Chelan Hydro-Consolidated System Revenue Bonds, Series 2002B, 5.250%, 7/01/37 (Alternative Minimum Tax) - AMBAC Insured 10,730 Sumner School District No. 320, Pierce County, Washington, 12/10 at 100.00 Aaa 12,830,719 Unlimited Tax General Obligation Bonds, Series 2000, 6.250%, 12/01/17 - FSA Insured 10,550 Port of Seattle, Washington, Limited Tax General Obligation 12/10 at 100.00 AA+ 11,225,306 Bonds, 2000 Series B, 5.750%, 12/01/25 (Alternative Minimum Tax) 5,315 Port of Seattle, Washington, Revenue Bonds, Series 2000B, No Opt. Call AAA 6,073,982 6.000%, 2/01/10 (Alternative Minimum Tax) - MBIA Insured 19,295 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 22,250,801 Terminal 18 Project, Series 1999A, 6.000%, 9/01/29 - MBIA Insured 5,000 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 5,487,600 Terminal 18 Project, Series 1999B, 6.000%, 9/01/20 (Alternative Minimum Tax) - MBIA Insured 5,000 Washington Health Care Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 5,289,850 Series 1999, Providence Services, 5.375%, 12/01/19 - MBIA Insured 8,750 Washington Public Power Supply System, Nuclear Project No. 3 7/08 at 102.00 Aa1 9,133,160 Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 7.8% 8,000 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 A- 7,202,880 Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 5,000 Madison, Wisconsin, Industrial Development Revenue Refunding 4/12 at 100.00 AA- 5,208,150 Bonds, Madison Gas & Electric Company Projects, Series 2002A, 5.875%, 10/01/34 (Alternative Minimum Tax) 3,000 Southeast Wisconsin Professional Baseball Park District, Sales No Opt. Call AAA 3,469,020 Tax Revenue Refunding Bonds, Series 1998A, 5.500%, 12/15/19 - MBIA Insured 4,000 Wisconsin Housing and Economic Development Authority, Home 3/10 at 100.00 AA 4,281,680 Ownership Revenue Bonds, 2000 Series, 5.750%, 3/01/22 (Alternative Minimum Tax) Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Series 1996, Aurora Medical Group, Inc. Project: 10,000 5.600%, 11/15/16 - FSA Insured 5/06 at 102.00 AAA 10,973,900 20,000 5.750%, 11/15/25 - FSA Insured 5/06 at 102.00 AAA 21,713,400 - ------------------------------------------------------------------------------------------------------------------------------------ $ 966,565 Total Long-Term Investments (cost $940,742,457) - 148.6% 1,005,278,549 =============----------------------------------------------------------------------------------------------------------------------- 28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 0.9% $ 4,000 Moffat County, Colorado, Pollution Control Revenue Bonds, VMIG-1 $ 4,000,000 Pacificorp Projects, Variable Rate Demand Bonds, 1.400%, 5/01/13 - AMBAC Insured+ 2,000 Nebraska Educational Finance Authority, Variable Rate VMIG-1 2,000,000 Demand Revenue Bonds, Creighton University Project, Refunding Series 2001, 1.350%, 8/01/31+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 6,000 Total Short-Term Investments (cost $6,000,000) 6,000,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $946,742,457) - 149.5% 1,011,278,549 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.4% 23,070,260 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.9)% (358,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $676,348,809 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. # On December 9, 2002, UAL Corporation, the holding company of United Air Lines, Inc., filed for federal bankruptcy protection. The Adviser determined that it was likely United would not remain current on their interest payment obligation with respect to these bonds and thus has stopped accruing interest. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 29
Nuveen Municipal Market Opportunity Fund, Inc. (NMO) Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.9% $ 3,000 Arizona Transportation Board, Highway Revenue Bonds, 7/11 at 100.00 AAA $ 3,216,840 Series 2001, 5.250%, 7/01/20 1,725 Industrial Development Authority of the County of Maricopa, 7/10 at 102.00 Baa3 1,711,183 Arizona, Education Revenue Bonds, Arizona Charter Schools Project I, Series 2000A, 6.750%, 7/01/29 970 Industrial Development Authority of the County of Pima, Arizona, 5/07 at 105.85 AAA 1,105,150 Single Family Mortgage Revenue Bonds, Series 1997A, 7.100%, 11/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.3% 5,000 Arkansas Development Finance Authority, Hospital Revenue 2/10 at 100.00 BBB- 5,534,650 Bonds, Washington Regional Medical Center, Series 2000, 7.000%, 2/01/15 2,865 Board of Trustees of the University of Arkansas at Fayetteville, 12/12 at 100.00 Aaa 3,179,004 Arkansas, Various Facilities Revenue Bonds, Series 2002, 5.500%, 12/01/20 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 7.1% 8,745 Bell Community Redevelopment Agency, California, Bell 11/03 at 102.00 AAA 9,133,016 Redevelopment Area Tax Allocation Refunding Bonds, Series 1994, 6.350%, 11/01/23 - FSA Insured 2,810 California Health Facilities Financing Authority, Kaiser 5/03 at 102.00 A 2,834,026 Permanente, Revenue Bonds, 1993 Series C, 5.600%, 5/01/33 1,000 State of California Department of Water Resources, Power 5/12 at 101.00 A3 1,113,720 Supply Revenue Bonds, Series 2002A, 5.750%, 5/01/17 2,500 Community Redevelopment Agency of the City of Los Angeles, 7/03 at 100.00 BBB*** 2,528,050 California, Tax Allocation Refunding Bonds, Central Business District Redevelopment Project, Series G, 6.750%, 7/01/10 Department of Water and Power of the City of Los Angeles, California, Electric Plant Revenue Bonds, Second Issue of 1993: 490 4.750%, 10/15/20 10/03 at 102.00 AA-*** 506,175 5,510 4.750%, 10/15/20 10/03 at 102.00 Aaa 5,693,152 995 Department of Water and Power of the City of Los Angeles, 2/04 at 102.00 AA-*** 1,014,990 California, Electric Plant Revenue Bonds, Issue of 1994, 5.375%, 2/15/34 County of Orange, California, 1996 Recovery Certificates of Participation, Series A: 13,100 5.875%, 7/01/19 - MBIA Insured 7/06 at 102.00 AAA 14,788,459 690 6.000%, 7/01/26 - MBIA Insured 7/06 at 102.00 AAA 783,157 5,870 Sacramento Municipal Utility District, California, Electric Revenue 9/03 at 100.00 AAA 5,876,046 Refunding Bonds, 1993 Series G, 4.750%, 9/01/21 - MBIA Insured 5,000 San Joaquin Hills Transportation Corridor Agency, California, 1/14 at 102.00 AAA 4,496,200 Toll Road Refunding Revenue Bonds, Series 1997A, 0.000%, 1/15/17 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 3.9% 3,000 City of Broomfield, Colorado, Master Facilities Lease 12/09 at 100.00 AAA 3,358,140 Purchase Agreement, Certificates of Participation, Series 1999, City and County of Broomfield Building Corporation, 5.750%, 12/01/24 - AMBAC Insured 6,000 Broomfield, Colorado, Sales and Use Tax Revenue Bonds, 12/12 at 100.00 Aaa 6,572,880 Series 2002A, Refunding and Improvement, 5.500%, 12/01/22 - AMBAC Insured 11,465 City and County of Denver, Colorado, Airport System Revenue 11/10 at 100.00 AAA 12,720,532 Refunding Bonds, Series 2000A, 6.000%, 11/15/18 (Alternative Minimum Tax) - AMBAC Insured 20,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 4,285,800 Bonds, Series 2000A, 0.000%, 9/01/28 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 0.1% 3,725 Miami-Dade County Industrial Development Authority, Florida, No Opt. Call Ca 523,363 Special Facilities Revenue Bonds, United Air Lines, Inc. Project, Series 2000, 6.050%, 3/01/35 (Alternative Minimum Tax) (Mandatory put 3/01/10)# 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 6.1% $ 15,000 City of Atlanta, Georgia, Airport General Revenue and Refunding 1/10 at 101.00 AAA $16,339,650 Bonds, Series 2000A, 5.600%, 1/01/30 - FGIC Insured 14,000 Fulton County Facilities Corporation, Georgia, Certificates 11/10 at 101.00 AAA 15,636,880 of Participation, Public Purpose Project, Series 1999, 5.500%, 11/01/18 - AMBAC Insured 8,000 State of Georgia, General Obligation Bonds, 1995 Series C, No Opt. Call AAA 9,826,000 7.250%, 7/01/08 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 10.2% 6,500 City of Chicago, Illinois, Gas Supply Refunding Revenue Bonds, 6/05 at 102.00 Aa2 7,068,100 1995 Series A, Peoples Gas Light and Coke Company Project, 6.100%, 6/01/25 5,250 City of Chicago, Illinois, Chicago Midway Airport, Revenue 1/09 at 101.00 AAA 5,346,705 Bonds, Series 1998B, 5.000%, 1/01/28 - MBIA Insured 4,000 City of Chicago, Illinois, Motor Fuel Tax Revenue Bonds, 7/13 at 100.00 AAA 4,078,040 Series 2003A, 5.000%, 1/01/33 - AMBAC Insured 5,210 Illinois Housing Development Authority, Section 8 Elderly 7/03 at 102.00 A 5,319,618 Housing Revenue Bonds, Garden House of River Oaks West Development, Series 1992A, 6.875%, 1/01/20 950 Illinois Housing Development Authority, Section 8 Elderly 9/03 at 102.00 A 971,062 Housing Revenue Bonds, Village Center Development, Series 1992C, 6.600%, 3/01/07 38,645 State of Illinois, General Obligation Bonds, Illinois FIRST, 4/10 at 100.00 AAA 41,840,555 Series 2000, 5.500%, 4/01/25 - MBIA Insured 1,975 Lake County Community High School District No. 127, No Opt. Call AAA 2,827,864 Grayslake, Illinois, General Obligation Bonds, Series 2002A, 9.000%, 2/01/13 - FGIC Insured 2,270 Metropolitan Pier and Exposition Authority, Illinois, 6/12 at 101.00 AAA 2,325,343 McCormick Place Expansion Project Revenue Bonds, Series 2002A, 5.000%, 12/15/28 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.9% 3,695 Indiana Educational Facilities Authority, Educational Facilities 2/11 at 100.00 AAA 3,930,593 Revenue Bonds, Series 2001, Butler University Project, 5.500%, 2/01/26 - MBIA Insured 20,695 Indianapolis Airport Authority, Indiana, Specialty Facility 11/05 at 102.00 CC 7,336,378 Revenue Bonds, Series 1995A, United Air Lines, Inc. - Indianapolis Maintenance Center Project, 6.500%, 11/15/31 (Alternative Minimum Tax)# 2,000 City of Petersburg, Indiana, Pollution Control Revenue Bonds, 8/11 at 102.00 Baa2 1,907,700 Indianapolis Power and Light Company, Series 1991 Refunding, 5.750%, 8/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.6% 4,215 Iowa Finance Authority, Solid Waste Disposal Revenue No Opt. Call N/R 3,800,876 Bonds, Series 1997, IPSCO Project, 6.000%, 6/01/27 (Alternative Minimum Tax) (Mandatory put 6/01/07) - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.7% Jefferson County, Kentucky, School District Finance Corporation, School Building Revenue Bonds, Series 2000A: 3,045 5.250%, 7/01/17 - FSA Insured 1/10 at 101.00 AAA 3,332,905 7,490 5.250%, 7/01/20 - FSA Insured 1/10 at 101.00 AAA 8,063,060 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 1.1% 7,415 Louisiana Local Government Environmental Facilities and 12/12 at 100.00 AAA 7,564,709 Community Development Authority, Revenue Bonds, Baton Rouge Community College Facilities Corporation Project, Series 2002, 5.000%, 12/01/32 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.6% Frederick County, Maryland, General Obligation Public Facilities Bonds, Series 2002: 3,710 5.000%, 11/01/18 11/12 at 101.00 AA 4,015,630 3,890 5.000%, 11/01/19 11/12 at 101.00 AA 4,181,750 2,500 Department of Transportation, Maryland, County Transportation No Opt. Call AA 2,927,625 Revenue Bonds, Series 2002, 5.500%, 2/01/16 31 Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.4% $ 5,150 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA $ 5,417,337 Bonds, 2000 Series A, 5.250%, 7/01/30 10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AAA 11,200,200 Bonds, 2000 Series A, 5.750%, 8/01/39 - FGIC Insured 6,195 University of Massachusetts Building Authority, Facilities 11/10 at 100.00 AAA 6,406,126 Revenue Bonds, Senior Series 2000A, Commonwealth Guaranteed, 5.125%, 11/01/25 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.1% 6,635 City of Detroit, Michigan, Water Supply System Revenue 7/11 at 101.00 AAA 7,849,072 Senior Lien Bonds, 2001 Series A, 5.750%, 7/01/28 (Pre-refunded to 7/01/11) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 8.3% 13,675 State of Minnesota, General Obligation Bonds, Series 2000, 11/10 at 100.00 AAA 15,002,569 5.125%, 11/01/16 4,660 Minnesota Housing Finance Agency, Single Family Mortgage 1/11 at 101.00 AA+ 5,035,922 Bonds, 1998 Series H-2, Remarketed, 6.050%, 7/01/31 (Alternative Minimum Tax) 30,000 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A 32,564,400 Healthcare System Revenue Bonds, Series 2000A, Fairview Health Services, 6.375%, 11/15/29 3,465 The Housing and Redevelopment Authority of the City of 11/15 at 103.00 AAA 4,383,121 St. Paul, Minnesota, Sales Tax Revenue Refunding Bonds, Civic Center Project, Series 1996, 7.100%, 11/01/23 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.3% 5,900 Mississippi Business Finance Corporation, Pollution Control 10/03 at 102.00 BBB- 5,816,928 Revenue Refunding Bonds, System Energy Resources, Inc. Project, Series 1998, 5.875%, 4/01/22 2,605 Mississippi Home Corporation, Single Family Mortgage Revenue 7/07 at 105.00 Aaa 2,798,630 Bonds, Series 1997D, Class 5, 6.750%, 7/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 3.9% Director of the State of Nevada, Department of Business and Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier Series 2000: 8,500 0.000%, 1/01/26 - AMBAC Insured No Opt. Call AAA 2,572,100 5,315 0.000%, 1/01/27 - AMBAC Insured No Opt. Call AAA 1,526,096 21,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 22,266,930 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 4.1% 720 Pollution Control Financing Authority of Camden County, 6/03 at 101.00 B2 691,661 New Jersey, Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991D, 7.250%, 12/01/10 21,000 New Jersey Transportation Trust Fund Authority, Transportation 6/10 at 100.00 AA-*** 24,588,060 System Bonds, 2000 Series B, 5.750%, 6/15/17 (Pre-refunded to 6/15/10) 3,165 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 A- 2,555,991 Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/42 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.9% 5,925 New Mexico Hospital Equipment Loan Council, Hospital 8/11 at 101.00 A+ 6,179,716 Revenue Bonds, Presbyterian Healthcare Services, Series 2001A, 5.500%, 8/01/21 5,675 Regents of the University of New Mexico, System Revenue No Opt. Call AA 6,888,883 Bonds, Series 1992A Refunding, 6.250%, 6/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 25.1% 11,000 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 A3 10,258,160 Tobacco Settlement Asset-Backed Bonds, Series A, 6.400%, 7/15/33 21,715 The City of New York, New York, General Obligation Bonds, 3/06 at 101.50 A 23,652,629 Fiscal 1996 Series I, 5.875%, 3/15/18 The City of New York, New York, General Obligation Bonds, Fiscal 2002 Series G: 1,000 5.000%, 8/01/17 8/12 at 100.00 A 1,024,110 10,500 5.750%, 8/01/18 8/12 at 100.00 A 11,347,350 5,000 The City of New York, New York, General Obligation Bonds, 8/12 at 100.00 A 5,419,150 Fiscal 2003 Series A, 5.750%, 8/01/16 32 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ The City of New York, New York, General Obligation Bonds, Fiscal 1997 Series H: 80 6.125%, 8/01/25 (Pre-refunded to 8/01/07) 8/07 at 101.00 A*** $ 93,900 9,920 6.125%, 8/01/25 8/07 at 101.00 A 10,959,715 17,870 New York City Transitional Finance Authority, New York, Future 8/09 at 101.00 AA+*** 21,171,661 Tax Secured Bonds, Fiscal 2000 Series A, 5.750%, 8/15/24 (Pre-refunded to 8/15/09) 15,000 Dormitory Authority of the State of New York, City University No Opt. Call A3 15,184,350 System Consolidated Second General Resolution Revenue Bonds, Series 1990D, 8.750%, 7/01/03 20,000 Dormitory Authority of the State of New York, Mental Health 2/07 at 102.00 AA- 21,673,600 Services Facilities Improvement Revenue Bonds, Series 1997A, 5.750%, 2/15/27 4,500 New York State Energy Research and Development Authority, 7/03 at 102.00 AAA 4,598,280 Gas Facilities Revenue Bonds, Series C, The Brooklyn Union Gas Company Project, 5.600%, 6/01/25 (Alternative Minimum Tax) - MBIA Insured 3,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AAA 3,353,910 Brookdale Hospital Medical Center Secured Hospital Revenue Bonds, 1995 Series A, 6.850%, 2/15/17 (Pre-refunded to 2/15/05) 4,785 New York State Medical Care Facilities Finance Agency, 11/05 at 102.00 Aa1 5,147,703 Health Center Projects Revenue Bonds, Secured Mortgage Program, Series 1995A, 6.375%, 11/15/19 10,000 The Port Authority of New York and New Jersey, Special 12/07 at 102.00 AAA 10,898,800 Project Bonds, Series 6, JFK International Air Terminal LLC Project, 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 7,000 Triborough Bridge and Tunnel Authority, New York, General 1/22 at 100.00 AAA 8,067,290 Purpose Revenue Bonds, Series 1999B, 5.500%, 1/01/30 (Pre-refunded to 1/01/22) 20,500 TSASC, Inc., New York, Tobacco Flexible Amortization 7/09 at 101.00 A2 18,835,400 Bonds, Series 1999-1, 6.250%, 7/15/34 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.2% 7,500 North Carolina Municipal Power Agency Number 1, Catawba 1/13 at 100.00 AAA 8,123,175 Electric Revenue Bonds, Series 2003A, 5.250%, 1/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 4.3% 22,905 City of Fargo, North Dakota, Health System Revenue Bonds, 6/10 at 101.00 AAA 24,307,702 MertiCare Obligated Group, Series 2000A, 5.625%, 6/01/31 - FSA Insured North Dakota State Water Commission, Water Development Trust Fund, Water Development and Management Program Bonds, 2000 Series A: 2,230 5.700%, 8/01/18 - MBIA Insured 8/10 at 100.00 AAA 2,536,514 2,450 5.750%, 8/01/19 - MBIA Insured 8/10 at 100.00 AAA 2,788,321 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 2.6% 16,140 County of Montgomery, Ohio, Hospital Facilities Revenue No Opt. Call BBB+ 17,972,051 Bonds, Series 1999, Kettering Medical Center Network Obligated Group, 6.300%, 4/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.0% 300 Trustees of the Tulsa Municipal Airport Trust, Oklahoma, 12/08 at 100.00 CCC 168,075 Revenue Bonds, Refunding Series 2000B, 6.000%, 6/01/35 (Alternative Minimum Tax) (Mandatory put 12/01/08) - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 2.5% 5,000 Oregon Health Sciences University, Revenue Bonds, 1/13 at 100.00 AAA 5,345,700 Series 2002A, 5.250%, 7/01/22 - MBIA Insured City of Portland, Oregon, Water System Revenue Bonds, 2000 Series A: 6,780 5.375%, 8/01/18 8/10 at 100.00 Aa1 7,493,527 3,655 5.500%, 8/01/20 8/10 at 100.00 Aa1 4,027,189 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 6.5% 5,000 Delaware County Industrial Development Authority, 1/08 at 102.00 BBB 5,122,700 Pennsylvania, Resource Recovery Revenue Bonds, Series 1997A Refunding, 6.200%, 7/01/19 15,000 Delaware River Port Authority, Pennsylvania, Revenue No Opt. Call AAA 16,796,250 Refunding Bonds, Series B of 1998, 5.250%, 1/01/08 - AMBAC Insured 15,050 Commonwealth of Pennsylvania, General Obligation Bonds, 9/11 at 101.00 AA 16,570,652 Second Series of 2001, 5.000%, 9/15/14 5,000 Pennsylvania Higher Education Assistance Agency, 12/10 at 100.00 AAA 5,938,600 Capital Acquisition Revenue Bonds, Series of 2000, 5.875%, 12/15/30 (Pre-refunded to 12/15/10) - MBIA Insured 33 Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 1.0% $ 8,400 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 5/12 at 100.00 A- $ 6,981,912 Asset-Backed Bonds, Series 2002 Refunding, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 5.4% 24,730 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 26,370,588 Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22 1,865 Three Rivers Solid Waste Authority, South Carolina, Solid 1/07 at 102.00 AAA 1,974,326 Waste Disposal Facilities Revenue Bonds, Series 1997, 5.300%, 1/01/27 - MBIA Insured 10,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 A- 8,592,100 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.9% 5,000 The Health, Educational and Housing Facilities Board of 7/13 at 100.00 AA 5,069,350 Knox County, Tennessee, Hospital Facilities Revenue Bonds, East Tennessee Children's Hospital, Series 2003A, 5.000%, 7/01/23 - RAAI Insured 1,200 The Health and Educational Facilities Board of the 7/03 at 102.00 N/R 1,097,640 Metropolitan Government of Nashville and Davidson Counties, Tennessee, Revenue Refunding Bonds, Series 1998, The Blakeford at Green Hills, 5.650%, 7/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 25.9% 5,000 Alliance Airport Authority, Inc., Texas, Special Facilities 6/03 at 100.00 Caa2 1,750,200 Revenue Bonds, Series 1990, American Airlines, Inc. Project, 7.500%, 12/01/29 (Alternative Minimum Tax) Arlington Independent School District, Tarrant County, Texas, Unlimited Tax Refunding and Improvement Bonds, Series 1995: 3,710 0.000%, 2/15/12 2/05 at 67.33 Aaa 2,397,179 3,710 0.000%, 2/15/13 2/05 at 62.94 Aaa 2,241,026 12,000 City of Austin, Texas, Hotel Occupancy Tax Subordinate 11/09 at 100.00 AAA 13,455,000 Lien Revenue Refunding Bonds, Series 1999, 5.800%, 11/15/29 - AMBAC Insured 14,200 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call BBB 13,864,880 Refunding Bonds, TXU Electric Company Project, Series 2001C, 5.750%, 5/01/36 (Alternative Minimum Tax) (Mandatory put 11/01/11) Brownsville Independent School District, Cameron County, Texas, Unlimited Tax School Building Bonds, Series 1999: 5,015 5.625%, 8/15/25 8/09 at 100.00 AAA 5,495,838 8,825 5.625%, 8/15/29 8/09 at 100.00 AAA 9,663,993 Clear Creek Independent School District, Galveston and Harris Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds, Series 2000: 17,325 5.400%, 2/15/18 2/10 at 100.00 AAA 18,996,689 10,000 5.650%, 2/15/19 2/10 at 100.00 AAA 11,162,300 6,880 5.700%, 2/15/20 2/10 at 100.00 AAA 7,687,918 8,020 5.700%, 2/15/21 2/10 at 100.00 AAA 8,947,994 6,000 Dallas-Fort Worth International Airport Facility Improvement 11/09 at 101.00 Caa2 2,070,300 Corporation, Texas, American Airlines, Inc. Revenue Bonds, Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax) 14,375 Dallas-Fort Worth International Airport Facilities Improvement 11/07 at 100.00 Caa2 5,044,619 Corporation, Texas, Revenue Refunding Bonds, Series 2000C, American Airlines, Inc., 6.150%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/07) 21,500 City of Houston, Texas, Airport System Subordinate Lien 7/10 at 100.00 AAA 22,980,275 Revenue Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured 22,500 City of Houston Water and Sewer System, Texas, Junior Lien 12/10 at 100.00 AAA 23,502,825 Revenue Refunding Bonds, Series 2000B, 5.250%, 12/01/30 - FGIC Insured 1,250 City of Houston Water and Sewer System, Texas, Junior Lien 12/11 at 100.00 AAA 1,308,113 Revenue Refunding Bonds, Series 2001A, 5.000%, 12/01/20 - FSA Insured 15,000 San Antonio Independent School District, Bexar County, 8/09 at 100.00 AAA 17,611,800 Texas, Unlimited Tax School Building Bonds, Series 1999, 5.800%, 8/15/29 (Pre-refunded to 8/15/09) 4,359 Texas General Services Commission, Participation Interests, 9/03 at 100.50 A 4,430,843 Series 1992, 7.500%, 9/01/22 3,970 City of Wichita Falls, Wichita County, Texas, Water and Sewer 8/11 at 100.00 AAA 4,131,698 System Priority Lien Revenue Bonds, Series 2001, 5.000%, 8/01/21 - AMBAC Insured 34 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 15.9% $ 5,500 Public Utility District No. 1 of Clark County, Washington, 1/11 at 100.00 AAA $ 5,746,070 Generating System Revenue Refunding Bonds, Series 2000, 5.125%, 1/01/20 - FSA Insured 2,755 Cowlitz County, Washington, Special Sewer Revenue Refunding No Opt. Call AAA 3,193,872 Bonds, Series 2002, CSOB Wastewater Treatment Facilities, 5.500%, 11/01/16 - FGIC Insured 10,000 Energy Northwest, Washington, Nuclear Project No. 3 Electric 7/11 at 101.00 AAA 11,082,500 Revenue Bonds, Series 2001A Refunding, 5.500%, 7/01/17 - FSA Insured 2,500 King County, Washington, Sewer Revenue Bonds, Series 2001, 1/12 at 100.00 AAA 2,586,025 5.000%, 1/01/23 - FGIC Insured 33,490 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100.00 AAA 36,758,624 5.625%, 2/01/30 - MBIA Insured 6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 AAA 7,321,061 5.625%, 2/01/24 (Alternative Minimum Tax) - MBIA Insured Seattle, Washington, General Obligation Bonds, Series 2002 Refunding and Improvement: 6,165 4.400%, 12/01/19 12/12 at 100.00 AAA 6,231,644 6,445 4.500%, 12/01/20 12/12 at 100.00 AAA 6,522,404 6,630 City of Tacoma, Washington, Electric System Revenue Bonds, 1/11 at 101.00 AAA 7,464,054 Series 2001A Refunding, 5.750%, 1/01/17 - FSA Insured 9,000 State of Washington, Motor Vehicle Fuel Tax General Obligation 1/12 at 100.00 AAA 9,395,100 Bonds, Series 2002C, 5.000%, 1/01/21 - FSA Insured 7,890 Washington State Higher Education Facilities Authority, 11/09 at 101.00 AA 8,794,589 Revenue Bonds, Pacific Lutheran University Project, Series 1999, 5.950%, 11/01/29 - RAAI Insured 3,520 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aaa 3,596,278 Bonds, Children's Hospital and Regional Medical Center, Series 2001, 5.000%, 10/01/21 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 0.2% 1,250 Wisconsin Health and Educational Facilities Authority, 3/08 at 101.00 N/R 1,067,550 Revenue Bonds, Series 1998, United Lutheran Program for the Aging, Inc., 5.700%, 3/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.4% 2,800 Town of Jackson, Wyoming, National Rural Utilities Cooperative 5/07 at 101.00 A 2,922,551 Finance Corporation, Guaranteed Gas Supply Revenue Bonds, Lower Valley Power & Light, Inc. Project, Series 1997B, 5.875%, 5/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,033,109 Total Long-Term Investments (cost $989,034,901) - 152.4% 1,041,747,510 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 1.0% 2,745 Indiana Health Facility Financing Authority, Variable Rate A-1 2,745,000 Demand Revenue Bonds, Fayette Memorial Hospital Association, Series 2002A, 1.400%, 10/01/32+ 2,400 Minnesota Higher Education Facilities Authority, Variable Rate VMIG-1 2,400,000 Demand Revenue Bonds, Olaf College, Series 2002-5M1, 1.350%, 10/01/32+ 1,975 Health and Educational Facilities Authority of the State of A1 1,975,000 Missouri, Educational Facilities Revenue Bonds, Saint Louis University, Series 2002, Variable Rate Demand Obligations, 1.400%, 7/01/32+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 7,120 Total Short-Term Investments (cost $7,120,000) 7,120,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $996,154,901) - 153.4% 1,048,867,510 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.2% 14,825,743 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.6)% (380,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $683,693,253 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. # On December 9, 2002, UAL Corporation, the holding company of United Air Lines, Inc., filed for federal bankruptcy protection. The Adviser determined that it was likely United would not remain current on their interest payment obligation with respect to these bonds and thus has stopped accruing interest. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 35
Nuveen Dividend Advantage Municipal Fund (NAD) Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 0.2% $ 1,500 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A1 $ 1,296,270 Bonds, Series 2000, 5.750%, 12/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 2.5% 15,000 Maricopa County, Arizona, Pollution Control Corporation, No Opt. Call BB+ 15,200,100 Pollution Control Revenue Remarketing Bonds, Series 1994A, El Paso Electric Company, 6.375%, 7/01/14 (Mandatory put 8/01/05) - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 1.7% 9,375 Sacramento County Sanitation Districts Financing Authority, 12/05 at 101.00 AA 10,435,781 California, Revenue Bonds, Series 2000A, Sacramento Regional County Sanitation District, 5.875%, 12/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 2.6% 10,000 City and County of Denver, Colorado, Airport Revenue Bonds, 11/06 at 101.00 AAA 10,791,400 Series 1996D, 5.500%, 11/15/25 - MBIA Insured 1,475 City and County of Denver, Colorado, Multifamily Housing 10/07 at 102.00 AAA 1,533,395 Revenue Bonds (FHA-Insured Mortgage Loan - The Boston Lofts Project), Series 1997A, 5.750%, 10/01/27 (Alternative Minimum Tax) 3,205 City and County of Denver, Colorado, Airport Special Facilities 1/09 at 101.00 AAA 3,589,215 Revenue Bonds (Rental Car Projects), Series 1999A, 6.000%, 1/01/12 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.5% Connecticut Development Authority, Health Facility Refunding Revenue Bonds, Alzheimer's Resource Center of Connecticut, Inc. Project, Series 1994A: 560 6.875%, 8/15/04 No Opt. Call N/R 560,571 2,700 7.125%, 8/15/14 8/04 at 102.00 N/R 2,633,364 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 2.7% 1,630 Florida Housing Finance Agency, Housing Revenue Bonds, 12/07 at 102.00 AAA 1,721,981 1997 Series F, Mar Lago Village Apartments Project, 5.800%, 12/01/17 (Alternative Minimum Tax) - AMBAC Insured 13,625 Industrial Development Authority, Martin County, Florida, 12/04 at 102.00 BBB- 14,289,219 Industrial Development Revenue Bonds, Indiantown Cogeneration, L.P. Project, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.4% 4,000 Water and Sewerage Authority, Forsyth County, Georgia, 4/10 at 102.00 AA*** 4,763,400 Revenue Bonds, Series 2000, 6.000%, 4/01/25 (Pre-refunded to 4/01/10) 3,500 The Hospital Authority of Hall County and the City of 5/09 at 101.00 AAA 3,714,795 Gainesville, Revenue Anticipation Certificates, Northeast Georgia Health System, Inc. Project, Series 1999, 5.500%, 5/15/29 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.9% 1,140 Idaho Housing and Finance Association, Single Family 7/09 at 101.00 Aa2 1,205,037 Mortgage Bonds, 1999 Series E, 5.750%, 1/01/21 (Alternative Minimum Tax) 2,010 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa2 2,157,172 Bonds, 2000 Series D, 6.350%, 7/01/22 (Alternative Minimum Tax) 2,000 Idaho Housing and Finance Association, Single Family 7/10 at 100.00 Aaa 2,144,240 Mortgage Bonds, 2000 Series E, 5.950%, 7/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 33.6% 3,635 Village of Channahon, Illinois, Revenue Refunding Bonds, 12/09 at 102.00 BBB+ 3,808,244 Series 1999, Morris Hospital, 5.750%, 12/01/12 22,750 City of Chicago, Illinois, General Obligation Bonds, Emergency No Opt. Call AAA 25,906,335 Telephone System Refunding, Series 1999, 5.500%, 1/01/23 - FGIC Insured 36 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 7,250 Chicago School Reform Board of Trustees of the Board of No Opt. Call AAA $ 8,279,572 Education of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 5.500%, 12/01/26 - FGIC Insured City of Chicago, Illinois, Multifamily Housing Revenue Bonds, Archer Court Apartments, FHA/GNMA, Series 1999A: 955 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,005,147 1,210 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,253,366 1,925 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,992,240 4,940 City of Chicago, Illinois, Wastewater Transmission Revenue 1/06 at 102.00 AAA 5,036,528 Bonds, Series 1995, 5.125%, 1/01/25 - FGIC Insured 5,000 City of Chicago, Illinois, Water Revenue Bonds, Series 1997, 11/07 at 102.00 AAA 5,246,450 5.250%, 11/01/27 - FGIC Insured 24,835 Illinois Development Finance Authority, Refunding Revenue 9/07 at 102.00 AAA 27,232,074 Bonds, Series 1999 (The Presbyterian Home Lake Forest Project), 5.625%, 9/01/31 - FSA Insured 3,935 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 2,376,071 Program Revenue Bonds, Series 1999A, Round Lake Community Unit School District Number 116 Project, 0.000%, 1/01/15 - MBIA Insured 2,750 Illinois Educational Facilities Authority, Revenue Bonds, MJH 9/09 at 100.00 AAA 2,998,380 Education Assistance Illinois, LLC, Series 1998D, 5.450%, 9/01/14 - AMBAC Insured Illinois Health Facilities Authority, Revenue Bonds, Series 1997A (Loyola University Health System): 1,600 5.000%, 7/01/24 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 1,795,856 5,400 5.000%, 7/01/24 - MBIA Insured 7/07 at 101.00 AAA 5,452,434 5,490 Illinois Health Facilities Authority, Revenue Refunding Bonds, 2/07 at 102.00 A 5,677,703 Series 1996B, Sarah Bush Lincoln Health Center, 5.500%, 2/15/16 17,280 Illinois Health Facilities Authority, Converted Adjustable Rate 10/07 at 102.00 AAA 20,348,410 Revenue Bonds, Series 1991A, Highland Park Hospital, 6.000%, 10/01/15 (Pre-refunded to 10/01/07) - FGIC Insured 9,960 Illinois Health Facilities Authority, Revenue Bonds, University 8/11 at 103.00 Aa1 10,930,204 of Chicago Project, Series 1985A Remarketed, 5.500%, 8/01/20 7,245 Illinois Health Facilities Authority, Revenue Refunding Bonds, 7/03 at 100.00 BB+ 7,243,696 Series 1991, Proctor Community Hospital Project, 7.375%, 1/01/23 Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project Refunding Bonds, Series 1996A: 9,750 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 3,594,338 13,000 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 4,509,310 20,500 Metropolitan Pier and Exposition Authority, Illinois, 12/09 at 101.00 AAA 22,210,315 McCormick Place Expansion Project Bonds, Series 1999A, 5.500%, 12/15/24 - FGIC Insured Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1999: 22,650 5.750%, 6/01/19 - FSA Insured No Opt. Call AAA 26,856,784 3,500 5.750%, 6/01/23 - FSA Insured No Opt. Call AAA 4,107,635 5,000 Robbins, Illinois, Resource Recovery Revenue Bonds, No Opt. Call N/R 2,193,750 Restructuring Project, Series 1999C, Guaranteed by Foster Wheeler, 7.250%, 10/15/24 (Alternative Minimum Tax) 4,500 Will County School District No. 122, New Lenox, Illinois, No Opt. Call Aaa 2,153,790 General Obligation Bonds, Series 2000B, 0.000%, 11/01/18 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.8% 8,000 Indiana Health Facility Financing Authority, Hospital 8/10 at 101.50 AAA 8,435,360 Revenue Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/26 - MBIA Insured 8,755 Indiana Health Facility Financing Authority, Hospital Revenue 11/09 at 101.00 AAA 10,223,301 Bonds, Charity Obligated Group, Series 1999D, 5.500%, 11/15/24 (Pre-refunded to 11/15/09) - MBIA Insured 4,190 City of Indianapolis, Indiana, Economic Development Revenue 6/09 at 101.00 Aa3 4,465,451 Bonds, Park Tudor Foundation, Inc. Project, Series 1999, 5.700%, 6/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 2.0% 11,175 Iowa Higher Education Loan Authority, Private College Facility 10/10 at 102.00 N/R 11,875,114 Revenue Bonds, Waldorf College Project, Series 1999, 7.375%, 10/01/19 37 Nuveen Dividend Advantage Municipal Fund (NAD) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.6% $ 3,825 City of Wichita, Kansas, Water and Sewer Utility Revenue 10/06 at 101.00 AAA $ 3,753,626 Bonds, Series 1999, 4.000%, 10/01/18 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 5.5% 3,030 School District Finance Corporation, Hardin County, Kentucky, 2/10 at 101.00 Aa3 3,410,992 School Building Revenue Bonds, Series 2000, 5.750%, 2/01/20 Kentucky Economic Development Finance Authority, Hospital System Refunding and Improvement Revenue Bonds, Series 1997, Appalachian Regional Healthcare, Inc. Project: 1,850 5.850%, 10/01/17 4/08 at 102.00 BB- 1,679,393 5,000 5.875%, 10/01/22 4/08 at 102.00 BB- 4,411,650 Public Properties Corporation, City of Newport, Kentucky, First Mortgage Revenue Bonds, Series 2000A, Public Parking and Plaza Project: 16,730 8.375%, 1/01/18 7/10 at 104.00 N/R 16,169,712 3,000 8.500%, 1/01/27 7/10 at 104.00 N/R 2,883,420 4,985 8.375%, 1/01/27 7/10 at 104.00 N/R 4,679,469 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 1.7% 2,245 City of Lafayette, State of Louisiana, Public Improvement 5/10 at 101.50 AAA 2,475,180 Sales Tax Bonds, Series 2000B, 5.625%, 5/01/25 - FGIC Insured 9,545 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 A- 7,714,842 Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/30 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.9% 5,000 Community Development Administration, Maryland Department 9/09 at 100.00 Aa2 5,299,950 of Housing and Community Development, Residential Revenue Bonds, 2000 Series G, 5.950%, 9/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 1.8% 1,500 Industrial Development Financing Authority, Boston, 9/12 at 102.00 N/R 1,495,950 Massachusetts, Subordinate Revenue Bonds, Crosstown Center Project, Series 2002, 8.000%, 9/01/35 (Alternative Minimum Tax) 785 Massachusetts Port Authority, Special Facilities Revenue 9/06 at 102.00 AAA 817,318 Bonds, US Air Project, Series 1996-A, 5.875%, 9/01/23 (Alternative Minimum Tax) - MBIA Insured 7,000 Massachusetts Port Authority, Special Facilities Revenue 7/07 at 102.00 AAA 7,552,370 Bonds, BOSFUEL Project, Series 1997, 5.500%, 7/01/18 (Alternative Minimum Tax) - MBIA Insured 1,170 Massachusetts Housing Finance Agency, Single Family 12/04 at 102.00 AA 1,217,444 Housing Revenue Bonds, Series 32, 6.600%, 12/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.6% City of Detroit, Michigan, Water Supply System Revenue Senior Lien Bonds, 2001 Series A: 2,565 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 2,923,459 2,435 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 2,542,457 4,000 Charter County of Wayne, Michigan, Detroit Metropolitan 12/08 at 101.00 AAA 4,235,560 Wayne County Airport, Airport Revenue Bonds, Series 1998A, 5.375%, 12/01/16 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.8% 2,250 Minneapolis-St. Paul Metropolitan Airports Commission, 4/11 at 101.00 N/R 1,497,398 Minnesota, Special Facilities Revenue Bonds, Northwest Airlines, Inc. Project, Series 2001A, 7.000%, 4/01/25 (Alternative Minimum Tax) 2,875 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 101.00 AA+ 3,017,629 Bonds, 1998 Series H-1 Fixed-Rate Remarketing, 5.650%, 7/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.4% Health and Educational Facilities Authority, State of Missouri, Revenue Bonds, SSM Health Care, Series 2001A: 4,370 5.250%, 6/01/21 - AMBAC Insured 6/11 at 101.00 AAA 4,583,780 3,670 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 3,799,588 38 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 1.1% $ 4,945 Montana Board of Housing, Single Family Program Bonds, 12/09 at 100.00 AA+ $ 5,307,370 2000 Series A-2, 6.450%, 6/01/29 (Alternative Minimum Tax) 1,000 Montana Higher Education Student Assistance Corporation, 12/09 at 100.00 A2 1,058,720 Student Loan Revenue Bonds, Subordinate Series 1999B, 6.400%, 12/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.4% 2,000 Nebraska Higher Education Loan Program, Inc., Senior No Opt. Call AAA 2,249,300 Subordinate Bonds, Series A-5A, 6.200%, 6/01/13 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 1.2% 6,695 New Hampshire Housing Finance Authority, Single Family 7/05 at 102.00 Aa2 6,982,885 Mortgage Acquisition Revenue Bonds, 1995 Series D, 6.550%, 7/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 8.2% 4,000 Higher Education Student Assistance Authority, State of 6/10 at 101.00 AAA 4,464,360 New Jersey, Student Loan Revenue Bonds, 2000 Series A, 6.000%, 6/01/13 (Alternative Minimum Tax) - MBIA Insured 2,000 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 2,067,460 Revenue Bonds, Jersey City Medical Center Issue, FHA-Insured Mortgage, Series 2001, 4.800%, 8/01/21 - AMBAC Insured 15,600 New Jersey Economic Development Authority, Solid Waste No Opt. Call N/R 10,920,000 Facilities Revenue Bonds, Bridgewater Resources, Inc. Project, Series 1999B, 8.250%, 6/01/19 (Alternative Minimum Tax)# 4,130 New Jersey Transit Corporation, Federal Transit No Opt. Call AAA 4,776,304 Administration Grants, Certificates of Participation, Series 2002A, 5.500%, 9/15/13 - AMBAC Insured 4,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,750,720 System Bonds, 1999 Series A, 5.750%, 6/15/18 10,000 The Port Authority of New York and New Jersey, Special 12/07 at 102.00 AAA 11,254,000 Project Bonds, Series 6, JFK International Air Terminal LLC Project, 5.900%, 12/01/17 (Alternative Minimum Tax) - MBIA Insured Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002: 10,000 5.750%, 6/01/32 6/12 at 100.00 A- 8,525,800 3,165 6.125%, 6/01/42 6/12 at 100.00 A- 2,555,991 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 19.9% 1,940 Industrial Development Agency, County of Cattaraugus, No Opt. Call N/R 1,714,533 New York, Tax- Exempt Industrial Development Revenue Bonds, Series 1999A (Laidlaw Energy & Environmental, Inc. Project), 8.500%, 7/01/21 (Alternative Minimum Tax) Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A: 5,000 5.250%, 12/01/26 - FSA Insured 6/08 at 101.00 AAA 5,210,550 5,000 5.500%, 12/01/29 6/03 at 101.00 A- 5,065,100 County of Nassau, New York, General Obligation Serial General Improvement Bonds, Series B: 4,005 5.250%, 6/01/19 - AMBAC Insured 6/09 at 102.00 AAA 4,297,085 7,005 5.250%, 6/01/20 - AMBAC Insured 6/09 at 102.00 AAA 7,504,106 7,005 5.250%, 6/01/21 - AMBAC Insured 6/09 at 102.00 AAA 7,442,883 2,000 The City of New York, New York, General Obligation Bonds, 2/08 at 101.00 AAA 2,197,460 Fiscal 1998 Series E, 5.250%, 8/01/14 - AMBAC Insured 14,000 The City of New York, New York, General Obligation Bonds, 2/08 at 101.00 AAA 14,837,760 Fiscal 1998 Series F, 5.375%, 8/01/19 - MBIA Insured New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 1998 Series A: 2,525 5.000%, 8/15/27 (Pre-refunded to 8/15/07) 8/07 at 101.00 AA+*** 2,850,473 50 5.000%, 8/15/27 8/07 at 101.00 AA+ 50,792 12,350 New York City Transitional Finance Authority, New York, 5/10 at 101.00 AA+*** 14,408,622 Future Tax Secured Bonds, Fiscal 2000 Series C, 5.500%, 11/01/29 (Pre-refunded to 5/01/10) 10,000 New York City Transitional Finance Authority, New York, 8/09 at 101.00 AA+*** 11,847,600 Future Tax Secured Bonds, Fiscal 2000 Series A, 5.750%, 8/15/24 (Pre-refunded to 8/15/09) 4,470 Dormitory Authority of the State of New York, Mental Health 2/06 at 102.00 AAA 4,617,108 Services Facilities Improvement Revenue Bonds, Series 1996B, 5.125%, 8/15/21 - MBIA Insured 39 Nuveen Dividend Advantage Municipal Fund (NAD) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 4,400 Dormitory Authority of the State of New York, Mental Health 2/07 at 102.00 AAA $ 4,647,192 Services Facilities Improvement Revenue Bonds, Series 1996E, 5.250%, 2/15/18 - AMBAC Insured 2,170 Dormitory Authority of the State of New York, Frances 7/07 at 102.00 AA 2,379,969 Schervier Home and Hospital Insured Revenue Bonds (Franciscan Health Partnership Obligated Group), Series 1997, 5.500%, 7/01/17 - RAAI Insured 7,500 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101.50 AAA 7,976,325 Revenue Refunding Bonds, Wyckoff Heights Medical Center, Series 1998H, 5.300%, 8/15/21 - MBIA Insured 10,000 Dormitory Authority of the State of New York, City University 7/09 at 101.00 AAA 11,681,300 System Consolidated Third General Resolution Revenue Bonds, 1999 Series 1, 5.500%, 7/01/29 (Pre-refunded to 7/01/09) - FSA Insured 2,000 Dormitory Authority of the State of New York, City University 1/08 at 102.00 AAA 2,303,320 System Consolidated Third General Resolution Revenue Bonds, 1997 Series 1, 5.375%, 7/01/24 (Pre-refunded to 1/01/08) - FSA Insured 7,500 New York State Urban Development Corporation, Correctional 1/06 at 102.00 AAA 8,387,925 Facilities Revenue Bonds, Series 6, 5.375%, 1/01/25 (Pre-refunded to 1/01/06) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.6% 3,000 County of Wake, North Carolina, General Obligation School 2/11 at 102.00 AAA 3,324,750 Bonds, Series 2001B, 5.250%, 2/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 4.4% 2,300 Amherst Exempted Village School District, Ohio, General 12/11 at 100.00 Aaa 2,432,733 Obligation Unlimited Tax School Improvement Bonds, Series 2001, 5.125%, 12/01/21 - FGIC Insured 3,635 County of Franklin, Ohio, Multifamily Housing Mortgage 1/05 at 103.00 Aa 3,712,207 Revenue Bonds, Series 1994A, FHA-Insured Mortgage Loan - Hamilton Creek Apartments Project, 5.550%, 7/01/24 (Alternative Minimum Tax) 5,750 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 5,286,550 Revenue Bonds, Bay Shore Power Project, Convertible Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) 13,700 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 13,688,629 Revenue Bonds, Bay Shore Power Project, Convertible Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) 1,115 Warren County, Ohio, General Obligation Special Assessment 12/07 at 101.00 Aa2 1,249,569 Bonds, Waterstone Boulevard, Series 1997, 5.500%, 12/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.4% 2,255 Portland, Oregon, Downtown Waterfront Urban Renewal and 6/10 at 101.00 Aaa 2,483,792 Redevelopment Bonds, 2000 Series A, 5.500%, 6/15/20 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 5.0% 3,480 Hospital Development Authority, Allegheny County, 11/10 at 102.00 B+ 3,936,785 Pennsylvania, Health System Revenue Bonds, Series 2000B, West Penn Allegheny Health System, 9.250%, 11/15/22 2,365 Carbon County Industrial Development Authority, No Opt. Call BBB- 2,472,584 Pennsylvania, Resource Recovery Revenue Refunding Bonds, 2000 Series (Panther Creek Partners Project), 6.650%, 5/01/10 (Alternative Minimum Tax) 18,900 City of Philadelphia, Pennsylvania, Airport Revenue Bonds, 6/08 at 102.00 AAA 20,119,995 Series 1998A, Philadelphia Airport System Refunding, 5.500%, 6/15/18 (Alternative Minimum Tax) - FGIC Insured 3,205 The School District of Philadelphia, Pennsylvania, General 8/12 at 100.00 AAA 3,634,758 Obligation Bonds, Series 2002B, 5.625%, 8/01/16 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 2.7% 2,015 City of Central Falls, Rhode Island, General Obligation 5/09 at 102.00 AA 2,252,085 School Bonds, 6.250%, 5/15/20 - RAAI Insured 3,500 Providence Redevelopment Agency, Rhode Island, Public Safety 4/10 at 101.00 Aaa 3,921,680 and Municipal Building Projects, Revenue Bonds, 1999 Series A, 5.750%, 4/01/29 - AMBAC Insured 12,000 Tobacco Settlement Financing Corporation, Rhode Island, 6/12 at 100.00 A- 10,263,000 Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32 40 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 3.0% $ 5,260 Memphis-Shelby County Airport Authority, Tennessee, 3/10 at 101.00 AAA $ 5,743,710 Airport Revenue Bonds, Series 1999D, 6.000%, 3/01/24 (Alternative Minimum Tax) - AMBAC Insured 2,425 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 2,500,903 Revenue Bonds, Series 2001B, 5.125%, 3/01/26 - FSA Insured 6,415 Tennessee Housing Development Agency, Homeownership 7/10 at 101.00 AA 7,007,746 Program Bonds, Issue 2000-1, 6.375% 7/01/25 (Alternative Minimum Tax) 2,475 Tennessee Housing Development Agency, Homeownership 7/10 at 100.00 AA 2,684,088 Program Bonds, Issue 2000-2B, 6.250%, 1/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 13.4% 1,000 Alliance Airport Authority, Inc., Texas, Special Facilities 6/03 at 100.00 Caa2 350,040 Revenue Bonds, Series 1990, American Airlines, Inc. Project, 7.500%, 12/01/29 (Alternative Minimum Tax) 10,000 Austin, Texas, Airport System Prior Lien Revenue Bonds, 11/05 at 102.00 AAA 11,054,000 Series 1995A, 6.125%, 11/15/25 (Alternative Minimum Tax) - MBIA Insured 2,560 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 BBB 2,672,538 Bonds, TXU Electric Company Project, Series 1999C Refunding, 7.700%, 4/01/32 (Alternative Minimum Tax) 4,675 Carrollton-Farmers Branch Independent School District, 2/09 at 100.00 AAA 5,489,946 Dallas County, Texas, School Building Unlimited Tax Bonds, Series 1999, 6.000%, 2/15/20 (Pre-refunded to 2/15/09) Coppell Independent School District, Dallas County, Texas, Unlimited Tax School Building and Refunding Bonds, Series 1999: 5,130 0.000%, 8/15/20 8/09 at 52.47 AAA 1,950,580 7,000 0.000%, 8/15/21 8/09 at 49.48 AAA 2,497,740 7,345 0.000%, 8/15/23 8/09 at 44.01 AAA 2,312,353 7,000 0.000%, 8/15/24 8/09 at 41.50 AAA 2,071,930 7,350 0.000%, 8/15/25 8/09 at 39.14 AAA 2,044,109 7,000 0.000%, 8/15/26 8/09 at 36.91 AAA 1,831,410 2,000 Dallas-Ft. Worth, Texas, International Airport Facilities 11/05 at 100.00 Caa2 753,760 Improvement Corporation, Revenue Refunding Bonds, Series 2000B, American Airlines, 6.050%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/05) 6,000 Dallas-Fort Worth, Texas, International Airport Facilities 11/07 at 100.00 Caa2 2,105,580 Improvement Corporation, Revenue Refunding Bonds, Series 2000C, American Airlines, 6.150%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/07) Health Facilities Development Corporation, Harris County, Texas, Revenue Bonds, Christus Health, Series 1999A: 12,000 5.375%, 7/01/24 - MBIA Insured 7/09 at 101.00 AAA 12,417,240 11,000 5.375%, 7/01/29 - MBIA Insured 7/09 at 101.00 AAA 11,335,390 2,500 Jefferson County, Texas, Certificates of Obligation, 8/10 at 100.00 AAA 2,972,900 Series 2000, 6.000%, 8/01/25 (Pre-refunded to 8/01/10) - FSA Insured 4,245 Laredo Independent School District, Webb County, Texas, 8/09 at 100.00 AAA 4,455,679 Unlimited Tax School Building Bonds, Series 1999, 5.250%, 8/01/24 2,000 City of Laredo, Texas, Sports Venue Sales Tax Revenue 3/09 at 100.00 AAA 2,104,560 Bonds, Series 2001, 5.300%, 3/15/26 - FGIC Insured 1,500 City of Port Arthur, Jefferson County, Texas, General Obligation 2/07 at 100.00 AAA 1,528,125 Bonds, Series 1997, 5.000%, 2/15/21 - MBIA Insured 10,000 Health Facilities Development Corporation, Tarrant County, 2/08 at 102.00 AAA 10,512,900 Texas, Texas Health Resources System Revenue Bonds, Series 1997A, 5.250%, 2/15/17 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 1.6% 310 Utah Housing Finance Agency, Single Family Mortgage 7/04 at 102.00 AAA 320,162 Bonds, 1994 Issue F, Federally Insured or Guaranteed Mortgage Loans, 7.000%, 7/01/27 (Alternative Minimum Tax) Utah Housing Finance Agency, Single Family Mortgage Bonds, 1999 Series C-2 Class I Bonds: 2,655 5.700%, 7/01/19 (Alternative Minimum Tax) 1/10 at 101.50 AAA 2,815,707 1,215 5.750%, 7/01/21 (Alternative Minimum Tax) 1/10 at 101.50 AA 1,290,537 41 Nuveen Dividend Advantage Municipal Fund (NAD) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTAH (continued) $ 2,195 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101.00 AA $ 2,364,586 1999 Series D, Federally Insured or Guaranteed Loans, 5.850%, 7/01/21 (Alternative Minimum Tax) 605 Utah Housing Finance Agency, Single Family Mortgage 7/09 at 101.50 Aa2 654,628 Bonds, 1999 Series F, 6.300%, 7/01/21 (Alternative Minimum Tax) 1,800 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 1,891,260 2000 Series F-2, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.4% 4,815 Metropolitan Washington Airports Authority, Virginia, Airport 10/04 at 100.00 AAA 5,014,148 System Revenue Bonds, Series 1994A, 5.500%, 10/01/24 (Alternative Minimum Tax) - MBIA Insured 3,395 Virginia Small Business Financing Authority, Industrial 11/09 at 102.00 N/R 3,406,068 Development Revenue Bonds, S.I.L. Clean Water, L.L.C. Project, Series 1999, 7.250%, 11/01/24 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 10.7% 4,000 Energy Northwest, Washington, Nuclear Project No. 3 Electric 7/13 at 100.00 Aa1 4,421,320 Revenue Bonds, Series 2003A Refunding, 5.500%, 7/01/17 Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18 Project, Series 1999B: 1,755 6.000%, 9/01/15 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 1,970,251 2,590 6.000%, 9/01/16 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 2,892,875 Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18 Project, Series 1999C: 875 6.000%, 9/01/15 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 982,319 1,260 6.000%, 9/01/16 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 1,407,344 9,760 City of Tacoma, Washington, Electric System Revenue Bonds, 1/11 at 101.00 AAA 10,697,253 Series 2001A Refunding, 5.625%, 1/01/21 - FSA Insured 7,725 Tobacco Settlement Authority, Washington State, Tobacco 6/13 at 100.00 A- 7,002,944 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 11,605 State of Washington, Certificates of Participation, Washington 7/09 at 100.00 AAA 12,729,989 State Convention and Trade Center, Series 1999, 5.250%, 7/01/16 - MBIA Insured 3,350 State of Washington, General Obligation Compound Interest No Opt. Call AAA 1,665,754 Bonds, Series 1999S-2, 0.000%, 1/01/18 - FSA Insured State of Washington, General Obligation Compound Interest Bonds, Series 1999S-3: 17,650 0.000%, 1/01/20 No Opt. Call AA+ 7,698,401 18,470 0.000%, 1/01/21 No Opt. Call AA+ 7,559,956 4,800 Washington Public Power Supply System, Nuclear Project No. 3 7/07 at 102.00 AAA 5,263,536 Refunding Revenue Bonds, Series 1997-A, 5.250%, 7/01/16 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 6.0% 3,810 City of La Crosse, Wisconsin, Industrial Development Refunding 12/08 at 102.00 AAA 4,164,825 Revenue Bonds, Series 1997C, Dairyland Power Cooperative Project, 5.550%, 2/01/15 - AMBAC Insured 4,180 Wisconsin Health and Educational Facilities Authority, 5/09 at 101.00 A 4,220,964 Revenue Bonds, Series 1999, Kenosha Hospital and Medical Center, Inc. Project, 5.625%, 5/15/29 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Series 1999, FH Healthcare Development, Inc. Project: 8,375 6.250%, 11/15/20 11/09 at 101.00 N/R 8,924,146 5,000 6.250%, 11/15/28 11/09 at 101.00 N/R 5,237,200 12,700 Wisconsin Health and Educational Facilities Authority, 8/09 at 101.00 Aaa 13,367,890 Revenue Bonds, Series 1999, Mercy Health System Corporation, 5.500%, 8/15/25 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 912,180 Total Long-Term Investments (cost $819,996,195) - 146.2% 878,878,405 =============----------------------------------------------------------------------------------------------------------------------- 42 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 0.5% $ 3,300 Massachusetts Health and Educational Facilities Authority, VMIG-1 $ 3,300,000 Revenue Bonds, Wellesley College Variable Rate Demand Obligations, Series 1999G, 1.250%, 7/01/39+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 3,300 Total Short-Term Investments (cost $3,300,000) 3,300,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $823,296,195) - 146.7% 882,178,405 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.4% 13,800,611 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.1)% (295,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $600,979,016 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. # Non-income producing security, in the case of a bond, generally denotes that issuer has defaulted on the payment of principal or interest or has filed for bankruptcy. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 43
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) Portfolio of INVESTMENTS April 30,2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 4.3% $ 18,500 Huntsville Health Care Authority, Alabama, Revenue Bonds, 6/11 at 101.00 A2 $19,019,295 Series 2001A, 5.750%, 6/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 2.8% 12,220 City of Valdez, Alaska, Marine Terminal Revenue Bonds, 8/03 at 102.00 AA+ 12,592,221 BP Pipelines, Inc., Series 1993, 5.850%, 8/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.6% 2,500 City of Phoenix, Arizona, Civic Improvement Corporation Airport 7/12 at 100.00 AAA 2,579,675 Revenue Bonds, Series 2002B Senior Lien, 5.250%, 7/01/32 (Alternative Minimum Tax) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.6% 2,500 Arkansas Development Finance Authority, Single Family 1/12 at 100.00 AAA 2,592,250 Mortgage Revenue Bonds, GNMA Mortgage-Backed Securities Program, 2002 Series C, 5.400%, 1/01/34 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 8.6% 6,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 6,325,920 Stanford University, Series Q, 5.250%, 12/01/32 13,825 Department of Veterans Affairs of the State of California, 6/06 at 101.00 AAA 15,108,098 Home Purchase Revenue Bonds, 2001 Series A, 5.550%, 12/01/25 - AMBAC Insured 5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 A- 4,431,250 Tobacco Settlement Asset-Backed Bonds, Series 2003-A1, 6.750%, 6/01/39 8,000 Department of Water and Power of the City of Los Angeles, 7/11 at 100.00 AA 8,143,120 California, Waterworks Revenue Bonds, Series 2001A Refunding, 5.125%, 7/01/41 6,000 Regional Airports Improvement Corporation, California, 12/12 at 102.00 CCC 4,020,120 American Airlines, Inc. Terminal 4 Project, Los Angeles International Airport Facilities, Sublease Revenue Bonds, Series 2002C, 7.500%, 12/01/24 (Alternative Minimum Tax) 240 Yuba County Water Agency, California, Yuba River Development 9/03 at 100.00 Ba3 223,910 Revenue Bonds, Series A, 4.000%, 3/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 4.7% 3,000 Colorado Educational and Cultural Facilities Authority, Charter 8/11 at 100.00 Ba2 3,050,310 School Revenue Bonds, Peak to Peak Charter School Project, Created by Boulder Valley School District No. RE-2, Boulder County, Colorado, 7.500%, 8/15/21 10,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 2,142,900 Bonds, Series 2000A, 0.000%, 9/01/28 - MBIA Insured 1,885 Eagle County, Colorado, Air Terminal Corporation, Airport 5/11 at 101.00 N/R 1,779,704 Terminal Revenue Bonds, Series 2001, 7.125%, 5/01/31 (Alternative Minimum Tax) 5,000 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 5,225,000 Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41 - FSA Insured Northwest Parkway Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2001B: 22,000 0.000%, 6/15/28 - FSA Insured 6/11 at 35.65 AAA 5,037,560 17,650 0.000%, 6/15/29 - AMBAC Insured 6/11 at 33.45 AAA 3,790,338 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 5.2% 15,000 City of Jacksonville, Florida, Transportation Revenue Bonds, 10/11 at 100.00 AAA 15,753,750 Series 2001, 5.250%, 10/01/29 - MBIA Insured 3,000 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 AAA 3,094,260 Miami International Airport, Series 2002, 5.375%, 10/01/32 (Alternative Minimum Tax) - FGIC Insured 4,000 Miami-Dade County Health Facilities Authority, Florida, 8/11 at 101.00 AAA 4,152,440 Hospital Revenue Bonds, Series 2001A, Miami Children's Hospital Refunding, 5.125%, 8/15/26 - AMBAC Insured 44 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 2.3% Honolulu City and County, Hawaii, Board of Water Supply, Water System Revenue Bonds, Series 2001: $ 3,000 5.250%, 7/01/26 - FSA Insured 7/11 at 100.00 AAA $ 3,138,630 6,725 5.250%, 7/01/31 - FSA Insured 7/11 at 100.00 AAA 7,003,146 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 11.8% 15,270 City of Chicago, Illinois, General Obligation Bonds, Project 1/11 at 101.00 AAA 15,955,318 and Refunding Series 2001A, 5.250%, 1/01/33 - MBIA Insured 3,710 City of Chicago, Illinois, Multifamily Housing Revenue Bonds, 12/11 at 100.00 A+ 3,888,414 Stone Terrace Apartments Project, FHA-Insured/GNMA, Series 2001A, 5.750%, 12/20/42 (Alternative Minimum Tax) 1,755 City of Chicago, Illinois, Chicago O'Hare International Airport, No Opt. Call Ca 451,913 Special Facility Revenue Bonds, United Air Lines, Inc. Project, Series 2001A, 6.375%, 11/01/35 (Alternative Minimum Tax) (Mandatory put 5/01/13)# 4,560 City of Chicago, Illinois, Collateralized Single Family Mortgage 4/11 at 105.00 AAA 4,988,594 Revenue Bonds, Series 2001A, 6.250%, 10/01/32 (Alternative Minimum Tax) 3,180 Illinois Development Finance Authority, Revenue Bonds, 12/21 at 100.00 BBB 3,143,843 Chicago Charter School Foundation Project, Series 2002A, 6.250%, 12/01/32 5,000 Illinois Development Finance Authority, Revenue Bonds, 9/11 at 100.00 AAA 5,331,500 Illinois Wesleyan University, Series 2001, 5.500%, 9/01/32 - AMBAC Insured 3,100 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 BBB+ 3,240,616 Midwestern University, Series 2001B, 6.000%, 5/15/31 5,000 Illinois Health Facilities Authority, Revenue Bonds, 2/11 at 101.00 AAA 5,139,250 Series 2001B, Edward Hospital Obligation Group, 5.250%, 2/15/34 - FSA Insured 3,000 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa2 3,022,620 Revenue Bonds, Educational Advancement Foundation Fund, University Center Project, Series 2002, 6.250%, 5/01/34 4,980 Metropolitan Pier and Exposition Authority, Illinois, 6/06 at 102.00 AAA 5,221,132 McCormick Place Expansion Project Refunding Bonds, Series 1996A, 5.250%, 6/15/27 - AMBAC Insured 5,000 Robbins, Illinois, Resource Recovery Revenue Bonds, No Opt. Call N/R 2,193,750 Restructuring Project, Series 1999C, Guaranteed by Foster Wheeler, 7.250%, 10/15/24 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 2.2% 2,000 Indianapolis Airport Authority, Indiana, Special Facilities 7/04 at 102.00 BBB 2,126,460 Revenue Bonds, Series 1994 (Federal Express Corporation Project), 7.100%, 1/15/17 (Alternative Minimum Tax) 5,000 Indianapolis Airport Authority, Indiana, Special Facilities 11/05 at 102.00 CC 1,772,500 Revenue Bonds, Series 1995A, United Air Lines, Inc. - Indianapolis Maintenance Center Project, 6.500%, 11/15/31 (Alternative Minimum Tax)# 6,000 Saint Joseph County Hospital Authority, Indiana, Health 2/09 at 102.00 BBB 5,800,560 System Revenue Bonds, Madison Center, Inc. Project, Series 1999, 5.800%, 2/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.2% 1,000 Iowa Higher Education Loan Authority, Private College 10/12 at 100.00 A 1,043,870 Facility Revenue Bonds, Wartburg College Project, Series 2002, 5.500%, 10/01/28 - ACA Insured - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 3.9% 17,000 City of Wichita, Kansas, Hospital Facilities Improvement 11/11 at 101.00 A+ 17,544,000 and Refunding Revenue Bonds, Series III 2001, Via Christi Health System, Inc., 5.625%, 11/15/31 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 3.0% 17,060 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 A- 13,390,735 Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 4.2% 3,300 Massachusetts Port Authority, Special Facilities Revenue 7/07 at 102.00 AAA 3,608,484 Bonds (BOSFUEL Project), Series 1997, 5.750%, 7/01/39 (Alternative Minimum Tax) - MBIA Insured 15,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 15,127,800 System Revenue Bonds, 1997 Series A (Senior), 5.000%, 1/01/37 - MBIA Insured 45 Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 14.7% City of Detroit, Michigan, Water Supply System Revenue Senior Lien Bonds, 2001 Series A: $ 20,000 5.500%, 7/01/33 - FGIC Insured 7/11 at 101.00 AAA $21,471,000 15,390 5.250%, 7/01/33 (Pre-refunded to 7/01/11) - FGIC Insured 7/11 at 100.00 AAA 17,540,752 14,610 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 15,254,739 4,000 Michigan Municipal Bond Authority, Public School Academy 10/09 at 102.00 Ba1 4,121,560 Revenue Bonds, Detroit Academy of Arts and Sciences, Series 2001, 8.000%, 10/01/31 Michigan State Hospital Finance Authority, Revenue and Refunding Bonds (The Detroit Medical Center Obligated Group), Series 1993A: 2,000 6.250%, 8/15/13 8/03 at 102.00 BBB- 1,842,540 4,000 6.500%, 8/15/18 8/03 at 102.00 BBB- 3,568,720 2,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BBB- 1,522,900 Bonds (The Detroit Medical Center Obligated Group), Series 1998A, 5.125%, 8/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 3.3% 14,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 14,641,480 Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/32 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 4.9% 21,000 Health and Educational Facilities Authority of the State 6/11 at 101.00 AAA 21,741,510 of Missouri, Revenue Bonds, SSM Health Care, Series 2001A, 5.250%, 6/01/28 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 1.3% 5,610 Montana Board of Housing, Single Family Program Bonds, 12/10 at 100.00 AA+ 5,830,697 2001 Series A-2, 5.700%, 6/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 3.8% 12,275 Director of the State of Nevada, Department of Business 1/10 at 100.00 AAA 13,015,551 and Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier Series 2000, 5.375%, 1/01/40 - AMBAC Insured 4,000 Henderson, Nevada, Healthcare Facility Revenue Bonds, 7/08 at 101.00 BBB 3,777,760 Catholic Healthcare West, Series 1998A, 5.250%, 7/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 5.7% 12,200 Business Finance Authority of the State of New Hampshire, 10/03 at 102.00 A3 12,366,408 Pollution Control Refunding Revenue Bonds, The United Illuminating Company Project, 1993 Series A, 5.875%, 10/01/33 8,000 New Hampshire Business Finance Authority, Pollution 10/08 at 102.00 A3 8,206,240 Control Revenue Bonds, Connecticut Light and Power Company, Series 1992A Refunding, Remarketed, 5.850%, 12/01/22 4,575 New Hampshire Housing Finance Authority, Single Family 5/11 at 100.00 Aa2 4,782,339 Mortgage Acquisition Bonds, Series 2001A, 5.700%, 1/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.2% 3,995 New Jersey Economic Development Authority, Special 11/10 at 101.00 B 2,737,374 Facilities Revenue Bonds, Continental Airlines, Inc. Project, Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax) Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 425 6.750%, 6/01/39 6/13 at 100.00 A- 376,656 2,700 6.250%, 6/01/43 6/13 at 100.00 A- 2,220,129 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 5.2% New Mexico Hospital Equipment Loan Council, Hospital Revenue Bonds, Presbyterian Healthcare Services, Series 2001A: 12,000 5.500%, 8/01/25 8/11 at 101.00 A+ 12,318,360 10,800 5.500%, 8/01/30 8/11 at 101.00 A+ 11,014,812 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 6.3% 6,000 Long Island Power Authority, New York, Electric System 5/11 at 100.00 A- 6,172,800 General Revenue Bonds, 2000 Series L, 5.375%, 5/01/33 14,500 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA 14,957,620 Water and Sewer System Revenue Bonds, Fiscal 2001 Series C, 5.125%, 6/15/33 46 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 5,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 Caa2 $ 1,825,050 Special Facility Revenue Bonds, American Airlines, Inc. - John F. Kennedy International Airport Project, Series 2002B, 8.500%, 8/01/28 (Alternative Minimum Tax) 4,900 Dormitory Authority of the State of New York, Mount Sinai NYU 7/10 at 101.00 Baa3 5,182,436 Health Obligated Group Revenue Bonds, Series 2000A, 6.625%, 7/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.9% 2,950 North Carolina Capital Facilities Financing Agency, Educational 4/13 at 100.00 AAA 3,020,594 Facilities Revenue Bonds, Johnson and Wales University Project, Series 2003A, 5.000%, 4/01/33 (DD, settling 5/01/03) - XLCA Insured 830 North Carolina Eastern Municipal Power Agency, Power 7/03 at 102.00 BBB 848,916 System Revenue Bonds, Refunding Series 1993, 6.250%, 1/01/12 4,500 North Carolina Eastern Municipal Power Agency, Power 1/09 at 102.00 BBB 4,781,745 System Revenue Bonds, Series 1999B Refunding, 5.600%, 1/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 1.0% 4,455 North Dakota Housing Finance Agency, Housing Finance 7/10 at 100.00 Aa2 4,573,236 Program, Home Mortgage Finance Program Bonds, 2001 Series A Refunding, 5.550%, 1/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.4% 1,845 Board of Education, City School District of Columbus, Franklin 6/13 at 100.00 AAA 1,901,992 County, Ohio, General Obligation Bonds, Series 2003, 5.000%, 12/01/28 (WI, settling 5/01/03) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.5% 2,655 Oklahoma Development Finance Authority, Hillcrest 8/09 at 101.00 B1 2,200,358 Healthcare System Revenue and Refunding Bonds, Series 1999A, 5.125%, 8/15/10 (DD, settling 5/01/03) - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 3.9% 8,000 Hospital Facility Authority of Clackamas County, Oregon, 5/11 at 101.00 AA 8,216,480 Revenue Bonds, Legacy Health System Refunding Series 2001, 5.250%, 5/01/21 9,000 State of Oregon Department of Administrative Services, 5/11 at 101.00 AAA 9,266,310 Certificates of Participation, 2001 Series D, 5.000%, 5/01/26 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 8.2% 5,000 Hospital Development Authority, Allegheny County, 11/10 at 102.00 B+ 5,600,300 Pennsylvania, Health System Revenue Bonds, Series 2000B, West Penn Allegheny Health System, 9.250%, 11/15/30 8,000 Pennsylvania Higher Educational Facilities Authority, UPMC 1/11 at 101.00 A 8,360,320 Health System Revenue Bonds, Series 2001A, 6.000%, 1/15/31 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, Fourteenth Series: 10,000 6.375%, 7/01/14 (Pre-refunded to 7/01/03) 7/03 at 102.00 BBB*** 10,288,500 12,000 6.375%, 7/01/26 (Pre-refunded to 7/01/03) 7/03 at 102.00 BBB*** 12,346,200 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 1.1% 4,820 South Dakota Housing Development Authority, Homeownership 5/09 at 102.00 AAA 5,055,553 Mortgage Bonds, 1997 Series E4, Remarketed, 5.450%, 5/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 22.0% 7,500 City of Austin, Texas, Electric Utility System Revenue Bonds, 11/10 at 100.00 AAA 7,615,125 Series 2001 Refunding, 5.000%, 11/15/30 - FSA Insured Dallas-Fort Worth International Airport Public Facility Improvement Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001: 15,000 5.250%, 1/15/26 - FSA Insured 1/09 at 100.00 AAA 15,561,300 1,750 5.200%, 1/15/31 - FSA Insured 1/09 at 100.00 AAA 1,788,133 10,000 Gulf Coast Industrial Development Authority, Texas, 4/12 at 100.00 Ba2 9,673,900 Solid Waste Disposal Revenue Bonds, Citgo Petroleum Project, Series 1998, 8.000%, 4/01/28 (Alternative Minimum Tax) 40,000 Harris County-Houston Sports Authority, Texas, Senior Lien 11/30 at 54.04 AAA 4,814,400 Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/40 - MBIA Insured 47 Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 30,980 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA $31,981,893 Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - MBIA Insured Hays Consolidated Independent School District, Hays County, Texas, General Obligation School Building Bonds, Series 2001: 10,715 0.000%, 8/15/25 8/11 at 43.18 AAA 2,978,877 12,940 0.000%, 8/15/26 8/11 at 40.60 AAA 3,372,164 City of Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Series 2001B, Convention Project: 5,000 0.000%, 9/01/30 - AMBAC Insured No Opt. Call AAA 1,165,150 5,000 0.000%, 9/01/31 - AMBAC Insured No Opt. Call AAA 1,103,800 5,000 Metro Health Facilities Development Corporation, Texas, 1/11 at 100.00 B1 4,521,200 Hospital Revenue Bonds, Wilson N. Jones Memorial Hospital Project, Series 2001, 7.250%, 1/01/31 10,500 State of Texas, General Obligation Bonds, Water Financial 8/11 at 100.00 Aa1 10,923,255 Assistance Program, Series 2001, 5.250%, 8/01/35 2,000 Health Facilities Development Corporation, Tom Green 5/11 at 101.00 Baa3 2,107,600 County, Texas, Hospital Revenue Bonds, Shannon Health System Project, Series 2001, 6.750%, 5/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.9% 4,000 Intermountain Power Agency, Utah, Power Supply Revenue , 7/03 at 102.00 A+*** 4,106,560 Refunding Bonds, 1993 Series A, 5.500% 7/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 3.4% 7,250 The City of Seattle, Washington, Municipal Light and 3/11 at 100.00 AAA 7,462,498 Power Improvements and Refunding Revenue Bonds, Series 2001, 5.125%, 3/01/26 - FSA Insured 7,500 Washington State Health Care Facilities Authority, Revenue 10/11 at 100.00 AAA 7,818,225 Bonds, Series 2001A, Providence Health System, 5.250%, 10/01/21 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.9% 7,070 Wisconsin Housing and Economic Development Authority, 6/11 at 100.00 AA 7,366,303 Home Ownership Program Bonds, 2001 Series, 5.750%, 3/01/32 (Alternative Minimum Tax) 1,000 Wisconsin Health and Educational Facilities Authority, 5/12 at 100.00 N/R 1,009,800 Revenue Bonds, Divine Savior Healthcare, Series 2002A, 7.375%, 5/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ $ 748,200 Total Long-Term Investments (cost $626,368,132) - 146.0% 650,515,376 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.8% 3,500 Indiana Educational Facilities Authority, Educational Facilities VMIG-1 3,500,000 Revenue Bonds, DePauw Project, Series 2002, Variable Rate Demand Obligations, 1.350%, 7/01/32+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 3,500 Total Short-Term Investments (cost $3,500,000) 3,500,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $629,868,132) - 146.8% 654,015,376 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.0% 13,524,715 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.8)% (222,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $445,540,091 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (DD) Security purchased on a delayed delivery basis. (WI) Security purchased on a when-issued basis. # On December 9, 2002, UAL Corporation, the holding company of United Air Lines, Inc., filed for federal bankruptcy protection. The Adviser determined that it was likely United would not remain current of their interest payment obligations with respect to these bonds and thus has stopped accruing interest. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 48
Nuveen Dividend Advantage Municipal Fund 3 (NZF) Portfolio of INVESTMENTS April 30,2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.0% $ 5,655 Alabama State Port Authority, Docks Facilities Revenue Bonds, 10/11 at 100.00 AAA $ 5,772,341 Series 2001, 5.250%, 10/01/26 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.7% 4,000 Alaska Student Loan Corporation, Student Loan Revenue Bonds, 7/08 at 100.00 AAA 4,166,680 1998 Series A, 5.250%, 7/01/14 (Alternative Minimum Tax) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.9% Sparks Regional Medical Center, Sebastian County, Arkansas, Public Health Facilities Board, Hospital Revenue Improvement Bonds, Series 2001A: 1,805 5.500%, 11/01/13 11/11 at 101.00 A2 1,955,970 1,900 5.500%, 11/01/14 11/11 at 101.00 A2 2,041,797 1,500 5.250%, 11/01/21 11/11 at 101.00 A2 1,527,525 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 9.4% 5,000 California Infrastructure and Economic Development Bank, 8/11 at 102.00 A 5,143,300 Revenue Bonds, Kaiser Hospital Assistance I-LLC, Series 2001A, 5.550%, 8/01/31 18,850 State of California, Veterans General Obligation Bonds, 6/07 at 101.00 AAA 19,391,749 2001 Series BZ, 5.350%, 12/01/21 (Alternative Minimum Tax) - MBIA Insured Regional Airports Improvement Corporation, Los Angeles, California, Lease Revenue Refunding Bonds, LAXFUEL Corporation at Los Angeles International Airport, Series 2001: 13,955 5.750%, 1/01/16 (Alternative Minimum Tax) - AMBAC Insured 1/12 at 100.00 AAA 15,368,502 5,000 5.375%, 1/01/21 (Alternative Minimum Tax) - AMBAC Insured 1/12 at 100.00 AAA 5,192,600 1,500 5.250%, 1/01/23 (Alternative Minimum Tax) - AMBAC Insured 1/12 at 100.00 AAA 1,532,895 10,000 5.500%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured 1/12 at 100.00 AAA 10,252,000 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 8.3% 2,250 Canterberry Crossing Metropolitan District II, Parker, 12/12 at 100.00 N/R 2,265,120 Colorado, General Obligation Limited Tax Bonds, Series 2002, 7.375%, 12/01/32 1,775 Colorado Educational and Cultural Facilities Authority, 6/11 at 100.00 Ba1 1,784,461 Charter School Revenue Bonds, Series 2001, Frontier Academy Project in Weld County, School District No. 6, 7.375%, 6/01/31 3,250 Colorado Educational and Cultural Facilities Authority, 5/12 at 102.00 N/R 3,260,563 Charter School Revenue Bonds, Montessori Peaks Building Foundation, Series 2002A, 8.000%, 5/01/32 1,700 Colorado Educational and Cultural Facilities Authority, 3/12 at 100.00 N/R 1,687,998 Charter School Revenue Bonds, Belle Creek Education Center, Series 2002A, 7.625%, 3/15/32 5,060 Colorado Housing and Finance Authority, Multifamily Project 10/11 at 100.00 AAA 5,267,156 Bonds, Class I, 2001 Series A-1, 5.500%, 4/01/31 (Alternative Minimum Tax) 10,000 City of Colorado Springs, Colorado, Utilities System 11/07 at 100.00 AA 10,696,800 Improvement and Refunding Revenue Bonds, Series 1997A, 5.375%, 11/15/26 2,000 City and County of Denver, Colorado, Airport System Revenue 11/11 at 100.00 AAA 2,163,340 Refunding Bonds, Series 2001A, 5.500%, 11/15/16 (Alternative Minimum Tax) - FGIC Insured City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1996A: 19,150 5.750%, 11/15/16 - MBIA Insured 11/06 at 101.00 AAA 21,512,344 1,105 5.500%, 11/15/25 - MBIA Insured 11/06 at 101.00 AAA 1,192,450 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 2.1% 7,790 Connecticut Housing Finance Authority, Housing Mortgage 11/09 at 100.00 AAA 8,215,801 Finance Program Bonds, 2000 Series B, Subseries B-2, 5.850%, 5/15/31 (Alternative Minimum Tax) 4,025 Connecticut Housing Finance Authority, Housing Mortgage 5/10 at 100.00 AAA 4,185,597 Finance Program Bonds, 2001 Series A, Subseries A-2, 5.350%, 11/15/22 (Alternative Minimum Tax) 49 Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ DELAWARE - 0.7% $ 4,000 Delaware State Housing Authority, Multifamily Mortgage 7/12 at 100.00 Aa3 $ 4,173,960 Revenue Bonds, Series 2001A, 5.400%, 7/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.1% 6,000 District of Columbia, Revenue Bonds (The Catholic University 10/09 at 101.00 AAA 6,516,120 of America Issue), Series 1999, 5.625%, 10/01/29 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.7% 2,000 Dade County, Florida, Water and Sewer System Revenue 10/07 at 102.00 AAA 2,227,860 Bonds, Series 1997, 5.375%, 10/01/16 - FGIC Insured Housing Finance Authority, Orange County, Florida, Multifamily Housing Revenue Bonds, Oak Glen Apartments, Series 2001G: 1,105 5.400%, 12/01/32 (Alternative Minimum Tax) - FSA Insured 12/11 at 100.00 AAA 1,147,852 2,195 5.450%, 12/01/41 (Alternative Minimum Tax) - FSA Insured 12/11 at 100.00 AAA 2,276,347 4,175 Pace Property Finance Authority, Inc., Florida, Utility 9/07 at 102.00 AAA 4,571,375 System Improvement and Refunding Revenue Bonds, Series 1997, 5.250%, 9/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.3% 5,000 City of Atlanta, Georgia, Airport General Revenue Bonds, 1/10 at 101.00 AAA 5,238,500 Series 2000B, 5.625%, 1/01/30 (Alternative Minimum Tax) - FGIC Insured 2,700 Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station 12/11 at 101.00 N/R 2,805,327 Project, Series 2001, 7.900%, 12/01/24 3,600 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 A- 3,650,076 Revenue Anticipation Certificates, Northeast Georgia Health System, Inc. Project, Series 2001, 5.500%, 5/15/31 2,000 Henry County Water and Sewerage Authority, Georgia, 2/10 at 101.00 AAA 2,204,460 Water and Sewerage Revenue Bonds, Series 2000, 5.625%, 2/01/30 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.9% 5,125 State of Hawaii, Highway Revenue Bonds, Series 2001, 7/11 at 100.00 AAA 5,491,694 5.375%, 7/01/21 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 16.7% 3,000 City of Chicago, Illinois, General Obligation Bonds, 1/11 at 100.00 AAA 3,185,580 Neighborhoods Alive 21 Program, Series 2001A, 5.500%, 1/01/31 - FGIC Insured 8,375 City of Chicago, Illinois, Midway Airport Revenue Bonds, 1/11 at 101.00 AAA 8,911,419 Series 2001A, 5.500%, 1/01/19 (Alternative Minimum Tax) - FSA Insured 4,950 City of Chicago, Illinois, Chicago O'Hare International Airport, 1/11 at 101.00 AAA 5,087,363 Second Lien Passenger Facility Charge Revenue Bonds, Series 2001A, 5.375%, 1/01/32 (Alternative Minimum Tax) - AMBAC Insured 1,750 City of Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/08 at 102.00 AAA 1,834,035 5.250%, 1/01/28 - FGIC Insured 10,800 City of Chicago, Illinois, Sales Tax Revenue Bonds, Series 1999, 1/09 at 101.00 AAA 12,386,304 5.375%, 1/01/30 (Pre-refunded to 1/01/09) - FGIC Insured City of Chicago, Illinois, Second Lien Wastewater Transmission Revenue Bonds, Series 2001A: 2,220 5.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 2,573,513 8,610 5.500%, 1/01/26 - AMBAC Insured 1/11 at 100.00 AAA 9,182,823 10,000 City of Chicago, Illinois, Senior Lien Water Revenue Bonds, 11/11 at 100.00 AAA 10,225,900 Series 2001, 5.000%, 11/01/26 - AMBAC Insured 1,000 Illinois Health Facilities Authority, Revenue Bonds, 5/10 at 101.00 A3 1,081,850 Series 2000, Condell Medical Center, 6.500%, 5/15/30 15,000 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa1 15,474,600 University Health System, Series 2001A, 6.125%, 7/01/31 9,000 Illinois Health Facilities Authority, Revenue Bonds, Covenant 12/11 at 101.00 BBB+ 8,715,240 Retirement Communities, Inc., Series 2001, 5.875%, 12/01/31 2,000 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 2,293,580 McCormick Place Expansion Project Refunding Bonds, Series 1998A, 5.500%, 6/15/29 - FGIC Insured 50 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 16,900 Metropolitan Pier and Exposition Authority, Illinois, 12/09 at 101.00 AAA $17,726,241 McCormick Place Expansion Project Bonds, Series 1999A, 5.250%, 12/15/28 - FGIC Insured 4,000 Robbins, Illinois, Resource Recovery Revenue Bonds, No Opt. Call N/R 1,755,000 Restructuring Project, Series 1999C, Guaranteed by Foster Wheeler, 7.250%, 10/15/24 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 4.9% Clark-Pleasant Community School Building Corporation, Indiana, First Mortgage Bonds, Series 2001: 1,255 5.000%, 7/15/21 - AMBAC Insured 1/12 at 100.00 AAA 1,306,606 1,000 5.000%, 1/15/26 - AMBAC Insured 1/12 at 100.00 AAA 1,022,960 Evansville Vanderburgh Public Library Leasing Corporation, Indiana, First Mortgage Bonds, Series 2001: 2,000 5.750%, 7/15/18 - MBIA Insured 7/12 at 100.00 AAA 2,217,080 2,750 5.125%, 1/15/24 - MBIA Insured 1/12 at 100.00 AAA 2,815,753 3,490 City of Gary, Indiana, Mortgage Revenue Bonds, Windsor 11/11 at 102.00 AAA 3,580,461 Square Project, GNMA/FHA, Series 2001A, 5.375%, 10/20/41 (Alternative Minimum Tax) 1,250 Hamilton Southeastern Cumberland Campus School Building 1/12 at 100.00 AAA 1,301,663 Corporation, Indiana, First Mortgage Bonds, Series 2001, 5.125%, 1/15/23 - AMBAC Insured 9,500 Indiana Educational Facilities Authority, Educational Facilities 2/11 at 100.00 AAA 10,105,720 Revenue Bonds, Series 2001, Butler University Project, 5.500%, 2/01/26 - MBIA Insured 3,000 Indianapolis Airport Authority, Indiana, Specialty Facility 11/05 at 102.00 CC 1,063,500 Revenue Bonds, Series 1995A, United Air Lines, Inc. - Indianapolis Maintenance Center Project, 6.500%, 11/15/31 (Alternative Minimum Tax)# 3,500 University of Southern Indiana, Student Fee Bonds, 10/11 at 100.00 Aaa 3,640,070 Series 2001H, 5.000%, 10/01/21 - AMBAC Insured Wayne County Jail Holding Corporation, Indiana, First Mortgage Bonds, Series 2001: 1,150 5.625%, 7/15/18 - AMBAC Insured 1/13 at 101.00 AAA 1,304,399 1,090 5.500%, 7/15/22 - AMBAC Insured 1/13 at 101.00 AAA 1,195,959 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 4.4% 2,000 Iowa Finance Authority, Healthcare Facilities Revenue Bonds, 5/11 at 100.00 AAA 2,049,360 Great River Medical Center, Series 2001, 5.250%, 5/15/31 - FSA Insured Tobacco Settlement Authority, Iowa, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B: 28,000 5.300%, 6/01/25 6/11 at 101.00 A- 21,686,280 3,950 5.600%, 6/01/35 6/11 at 101.00 A- 2,992,007 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 3.2% 18,500 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AAA 19,344,710 Kentucky, Sewer and Drainage System Revenue Bonds, 2001 Series A, 5.125%, 5/15/27 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 3.6% 19,890 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 A- 15,612,059 Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 6,000 Parish of West Feliciana, State of Louisiana, Remarketed 5/03 at 102.00 BB+ 6,166,260 Pollution Control Revenue Bonds, Gulf States Utilities Company Project, Series 1985-A, 7.500%, 5/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 1.4% Maine State Housing Authority, Mortgage Purchase Bonds, 2001 Series B: 4,610 5.400%, 11/15/21 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 4,806,294 3,750 5.500%, 11/15/32 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 3,890,362 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 2.3% Community Development Administration, Department of Housing and Community Development, State of Maryland, Multifamily Housing Revenue Bonds, Insured Mortgage Loan, 2001 Series B: 1,175 5.250%, 5/15/21 (Alternative Minimum Tax) 5/11 at 100.00 Aa3 1,585 5.250%, 7/01/21 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 1,651,110 10,600 Maryland Energy Financing Administration, Limited Obligation 9/05 at 102.00 N/R 10,842,740 Cogeneration Revenue Bonds, AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 51 Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 1.0% $ 5,000 Massachusetts Port Authority, Special Facilities Revenue 1/11 at 101.00 AAA $ 5,269,050 Bonds, Delta Air Lines, Inc. Project, Series 2001A, 5.500%, 1/01/18 (Alternative Minimum Tax) - AMBAC Insured 930 Massachusetts Housing Finance Agency, Single Family 6/09 at 100.00 AAA 965,982 Housing Revenue Bonds, Series 71, 5.650%, 6/01/31 (Alternative Minimum Tax) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 8.2% 15,000 School District of the City of Detroit, Wayne County, No Opt. Call AAA 18,362,100 Michigan, School Building and Site Improvement Bonds, Unlimited Tax General Obligation, Series 2001A, 6.000%, 5/01/29 - FSA Insured 11,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA 11,307,010 Spectrum Health, Series 2001A, 5.500%, 1/15/31 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sparrow Obligated Group, Series 2001: 1,400 5.500%, 11/15/21 11/11 at 101.00 A1 1,452,038 2,500 5.625%, 11/15/31 11/11 at 101.00 A1 2,557,350 12,640 City of Royal Oak, Michigan, Hospital Finance Authority, 11/11 at 100.00 AAA 13,021,096 Hospital Revenue Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - MBIA Insured 2,395 Ypsilanti Community Utilities Authority, County of 5/11 at 100.00 AAA 2,459,090 Washtenaw, State of Michigan, Sanitary Sewer System No. 3 Bonds, Charter Township of Ypsilanti, 5.100%, 5/01/31 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.4% 2,400 Community Development Agency of Dakota County, Minnesota, 10/11 at 105.00 Aaa 2,652,144 Multifamily Housing Revenue Bonds, Rose Apartments Project, Series 2001, 6.350%, 10/20/37 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.4% 2,155 Mississippi Business Finance Corporation, Retirement Facility 5/09 at 103.00 AAA 2,235,188 Revenue Refunding Bonds, Series 1999A, GNMA Collateralized Aldersgate Retirement Community, Inc. Project, 5.450%, 5/20/34 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 2.6% 2,000 Fenton, Missouri, Tax Increment Bonds, Gravois Bluffs Project, 10/12 at 100.00 N/R 2,002,700 Series 2002 Refunding and Improvement, 6.125%, 10/01/21 Missouri Development Finance Board, Cultural Facilities Revenue Bonds, The Nelson Gallery Foundation, Series 2001A: 3,335 5.250%, 12/01/19 - MBIA Insured 12/11 at 100.00 AAA 3,598,832 3,510 5.250%, 12/01/20 - MBIA Insured 12/11 at 100.00 AAA 3,764,089 3,695 5.250%, 12/01/21 - MBIA Insured 12/11 at 100.00 AAA 3,943,304 2,040 5.250%, 12/01/22 - MBIA Insured 12/11 at 100.00 AAA 2,166,541 - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.8% 5,000 Montana State Board of Investments, Exempt Facility 7/10 at 101.00 Ba3 4,760,300 Revenue Bonds, Series 2000, Stillwater Mining Company Project, 8.000%, 7/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.5% Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, 2001 Series D: 3,680 5.250%, 9/01/21 (Alternative Minimum Tax) 9/11 at 100.00 AAA 3,802,654 4,980 5.375%, 9/01/32 (Alternative Minimum Tax) 9/11 at 100.00 AAA 5,126,213 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 7.3% 35,000 Clark County, Nevada, General Obligation Limited Tax Bond 7/10 at 100.00 AAA 38,012,800 Bank Bonds, Series 2000, 5.500%, 7/01/30 - MBIA Insured 1,620 Nevada Housing Division, Single Family Mortgage Bonds, 4/08 at 101.50 Aaa 1,675,825 1998 Senior Series A-1, 5.300%, 4/01/18 (Alternative Minimum Tax) 4,290 University of Nevada, University Revenue Bonds, Community 1/12 at 100.00 AAA 4,488,799 College System Project, Series 2001A, 5.250%, 7/01/26 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.4% 2,000 New Hampshire Health and Education Authority, Hospital 10/11 at 101.00 Aaa 2,148,920 Revenue Bonds, Concord Hospital Issue, Series 2001, 5.500%, 10/01/21 - FSA Insured 52 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.5% $ 10,000 New Jersey Economic Development Authority, Water Facilities 11/12 at 101.00 AAA $10,288,800 Revenue Bonds, New Jersey-American Water Company Project, Series 2002A, 5.250%, 11/01/32 (Alternative Minimum Tax) - AMBAC Insured 4,125 New Jersey Transit Corporation, Federal Transit No Opt. Call AAA 4,770,521 Administration Grants, Certificates of Participation, Series 2002A, 5.500%, 9/15/13 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 5.0% 1,780 Village of East Rochester Housing Authority, New York, 10/11 at 101.00 AAA 1,868,591 Revenue Bonds, GNMA Security - Gates Senior Housing, Inc. Project, Series 2001, 5.300%, 4/20/31 5,350 Metropolitan Transportation Authority, New York, Dedicated 11/11 at 100.00 AAA 5,486,318 Tax Fund Bonds, Series 2001A, 5.000%, 11/15/31 - FGIC Insured 4,155 Monroe County Airport Authority, New York, Greater Rochester No Opt. Call AAA 4,734,872 International Airport Revenue Refunding Bonds, Series 1999, 5.750%, 1/01/13 (Alternative Minimum Tax) - MBIA Insured 2,500 The City of New York, New York, General Obligation Bonds, 8/12 at 100.00 AAA 2,771,650 Fiscal 2002 Series G, 5.625%, 8/01/20 - MBIA Insured New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Fiscal 2001 Series A: 8,210 5.500%, 6/15/33 - MBIA Insured 6/10 at 101.00 AAA 8,968,111 5,710 5.500%, 6/15/33 - FGIC Insured 6/10 at 101.00 AAA 6,237,261 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 3.4% 8,185 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/08 at 101.50 AAA 8,444,628 Bonds, 1998 Series A1, 5.300%, 9/01/19 (Alternative Minimum Tax) - FSA Insured 8,000 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 7,993,360 Revenue Bonds, Bay Shore Power Project, Convertible Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) Portage County, Ohio, General Obligation Bonds, Series 2001: 1,870 5.000%, 12/01/21 - FGIC Insured 12/11 at 100.00 AAA 1,959,667 1,775 5.000%, 12/01/23 - FGIC Insured 12/11 at 100.00 AAA 1,843,320 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.1% 1,000 Oklahoma Development Finance Authority, Hillcrest Healthcare 8/09 at 101.00 B1 828,760 System Revenue and Refunding Bonds, Series 1999A, 5.125%, 8/15/10 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 2.5% 4,700 Oregon Health, Housing, Educational and Cultural Facilities 11/11 at 101.00 AAA 4,954,129 Authority, Revenue Bonds, Peacehealth Issue, Series 2001, 5.250%, 11/15/21 - AMBAC Insured 10,000 State of Oregon, Housing and Community Services Department, 7/10 at 100.00 Aa2 10,357,300 Multifamily Housing Revenue Bonds, Series 2000A, 6.050%, 7/01/42 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 1.9% Hospital Development Authority, Allegheny County, Pennsylvania, Health System Revenue Bonds, Series 2000B, West Penn Allegheny Health System: 2,000 9.250%, 11/15/22 11/10 at 102.00 B+ 2,262,520 2,000 9.250%, 11/15/30 11/10 at 102.00 B+ 2,240,120 3,500 Pennsylvania Economic Development Finance Authority, 1/04 at 102.00 BBB- 3,505,845 Resource Recovery Revenue Bonds, Senior Series 1994A (Northampton Generating Project), 6.600%, 1/01/19 (Alternative Minimum Tax) 3,205 The School District of Philadelphia, Pennsylvania, General 8/12 at 100.00 AAA 3,634,758 Obligation Bonds, Series 2002B, 5.625%, 8/01/16 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.6% 2,185 Greenville County, South Carolina, Special Source Revenue 4/11 at 101.00 AAA 2,388,008 Bonds, Series 2001 Road Improvement Project, 5.500%, 4/01/21 - AMBAC Insured 6,850 South Carolina Transportation Infrastructure Bank, Revenue 10/11 at 100.00 Aaa 7,442,868 Bonds, Series 2001A, 5.500%, 10/01/22 - AMBAC Insured 53 Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.9% $ 5,210 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA $ 5,681,557 Revenue Bonds, Series 2001A, 5.500%, 3/01/14 (Alternative Minimum Tax) - FSA Insured 3,220 Tennessee Housing Development Agency, Homeownership 1/09 at 101.00 AA 3,314,636 Program Bonds, Issue 1998-2, 5.350% 7/01/23 (Alternative Minimum Tax) 2,480 Tennessee Housing Development Agency, Homeownership 7/11 at 100.00 AA 2,551,275 Program Bonds, Issue 2001-3A, 5.200%, 7/01/22 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 18.0% 1,000 Brushy Creek Municipal Utility District, Williamson County, 6/09 at 100.00 Aaa 1,022,600 Texas, Combination Unlimited Tax and Revenue and Refunding Bonds, Series 2001, 5.125%, 6/01/26 - FSA Insured 3,850 Cities of Dallas and Fort Worth, Texas, Dallas-Ft. Worth 11/11 at 100.00 AAA 4,012,047 International Airport, Joint Revenue Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured City of Frisco, Texas, Counties of Collins and Denton, General Obligation Bonds, Series 2001: 1,910 5.000%, 2/15/20 - FGIC Insured 2/11 at 100.00 AAA 1,994,384 2,005 5.000%, 2/15/21 - FGIC Insured 2/11 at 100.00 AAA 2,082,834 4,040 Harris County, Texas, Tax and Revenue Certificates of 8/11 at 100.00 AA+ 4,136,920 Obligation, Series 2001, 5.000%, 8/15/27 7,000 City of Houston, Texas, Airport System Subordinate Lien 7/08 at 101.00 AAA 7,388,710 Revenue Bonds, Series 1998B, 5.250%, 7/01/14 (Alternative Minimum Tax) - FGIC Insured City of Houston, Texas, Airport System Subordinate Lien Revenue Bonds, Series 2001A Refunding: 2,525 5.500%, 7/01/13 (Alternative Minimum Tax) - FGIC Insured 1/12 at 100.00 AAA 2,766,112 2,905 5.500%, 7/01/14 (Alternative Minimum Tax) - FGIC Insured 1/12 at 100.00 AAA 3,171,359 6,000 City of Houston, Texas, Water and Sewer System Junior Lien No Opt. Call AAA 6,808,260 Revenue Bonds, Series 2001B Refunding, 5.500%, 12/01/29 - MBIA Insured Health Facilities Development Corporation, Jefferson County, Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast Texas, Series 2001: 8,500 5.400%, 8/15/31 - AMBAC Insured 8/11 at 100.00 AAA 8,840,680 8,500 5.500%, 8/15/41 - AMBAC Insured 8/11 at 100.00 AAA 8,892,360 10,700 Laredo Independent School District, Webb County, Texas, 8/11 at 100.00 AAA 10,942,462 General Obligation Bonds, Series 2001 Refunding, 5.000%, 8/01/25 2,500 Matagorda County Navigation District Number One, Texas, No Opt. Call AAA 2,576,575 Collateralized Revenue Refunding Bonds (Houston Lighting & Power Company Project), Series 1997, 5.125%, 11/01/28 (Alternative Minimum Tax) - AMBAC Insured 1,540 Medina Valley Independent School District, Medina County, 2/11 at 100.00 Aaa 1,606,359 Texas, General Obligation Bonds, Series 2001, 5.250%, 2/15/26 5,430 Mineral Wells Independent School District, Pale Pinto and 2/08 at 100.00 Aaa 5,470,128 Parker Counties, Texas, Unlimited School Tax Building and Refunding Bonds, Series 1998, 4.750%, 2/15/22 3,000 North Central Texas Health Facilities Development 2/08 at 102.00 AAA 3,099,630 Corporation, Revenue Bonds, Series 1997B, Texas Health Resources System, 5.375%, 2/15/26 - MBIA Insured 3,045 Port of Houston Authority, Harris County, Texas, Unlimited 10/11 at 100.00 AAA 3,286,194 Tax General Obligation Port Improvement Bonds, Series 2001B, 5.500%, 10/01/17 (Alternative Minimum Tax) - FGIC Insured 13,260 Texas Department of Housing and Community Affairs, 7/11 at 100.00 AAA 13,622,661 Residential Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33 (Alternative Minimum Tax) 15,600 Texas Water Development Board, State Revolving Fund, Senior 1/07 at 100.00 AAA 16,657,836 Lien Revenue Bonds, Series 1996B, 5.125%, 7/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 1.2% Utah Housing Corporation, Single Family Mortgage Bonds, 2001 Series E: 2,460 5.200%, 1/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- 2,563,320 875 5.500%, 1/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 896,026 Utah Housing Corporation, Single Family Mortgage Bonds, 2001 Series F1: 2,965 4.950%, 7/01/18 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 3,036,842 730 5.300%, 7/01/23 (Alternative Minimum Tax) 7/11 at 100.00 AA- 748,768 54 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.3% $ 7,500 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA $ 7,863,975 Mortgage Bonds, 2001 Series J, Subseries J-1, 5.200%, 7/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 16.3% Housing Authority of the City of Bellingham, Washington, Revenue Bonds, Varsity Village Project, Series 2001A: 1,000 5.500%, 12/01/27 - MBIA Insured 12/11 at 100.00 Aaa 1,057,170 2,000 5.600%, 12/01/36 - MBIA Insured 12/11 at 100.00 Aaa 2,118,780 2,090 Public Utility District No. 1 of Benton County, Washington, 11/11 at 100.00 AAA 2,365,734 Electric Revenue Refunding Bonds, Series 2001A, 5.625%, 11/01/15 - FSA Insured 1,500 Public Utility District No. 1 of Grays Harbor County, Washington, 1/11 at 100.00 AAA 1,560,735 Electric Revenue Bonds, Series 2001, 5.125%, 1/01/22 - AMBAC Insured 2,475 Public Utility District No. 1 of Klickitat County, Washington, 12/11 at 100.00 AAA 2,527,742 Electric Revenue Bonds, Series 2001B, 5.000%, 12/01/26 - AMBAC Insured 12,955 Port of Seattle, Washington, Passenger Facility Charge Revenue 12/08 at 101.00 AAA 13,622,053 Bonds, Series 1998B, 5.300%, 12/01/16 (Alternative Minimum Tax) - AMBAC Insured Port of Seattle, Washington, Revenue Bonds, Series 2001B: 2,535 5.625%, 4/01/18 (Alternative Minimum Tax) - FGIC Insured 10/11 at 100.00 AAA 2,733,668 16,000 5.100%, 4/01/24 (Alternative Minimum Tax) - FGIC Insured 10/08 at 100.00 AAA 16,167,520 5,680 The City of Seattle, Washington, Municipal Light and Power 3/11 at 100.00 AAA 6,217,953 Improvements and Refunding Revenue Bonds, Series 2001, 5.500%, 3/01/18 - FSA Insured 4,530 The City of Tacoma, Washington, Solid Waste Utility Revenue 12/11 at 100.00 AAA 4,797,723 Bonds, Series 2001 Refunding, 5.250%, 12/01/21 - AMBAC Insured 2,250 State of Washington, Certificates of Participation, Washington 7/09 at 100.00 AAA 2,486,790 State Convention and Trade Center, Series 1999, 5.250%, 7/01/14 - MBIA Insured Washington State Health Care Facilities Authority, Revenue Bonds, Series 2001, Group Health Cooperative of Puget Sound: 3,005 5.375%, 12/01/17 - AMBAC Insured 12/11 at 101.00 AAA 3,254,505 2,915 5.375%, 12/01/18 - AMBAC Insured 12/11 at 101.00 AAA 3,136,394 3,720 Washington State Health Care Facilities Authority, Revenue 10/11 at 100.00 Aaa 3,974,113 Bonds, Children's Hospital and Regional Medical Center, Series 2001, 5.375%, 10/01/18 - AMBAC Insured Washington State Health Care Facilities Authority, Revenue Bonds, Series 2001, Good Samaritan Hospital: 5,480 5.500%, 10/01/21 - RAAI Insured 10/11 at 101.00 AA 5,774,112 25,435 5.625%, 10/01/31 - RAAI Insured 10/11 at 101.00 AA 26,743,376 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 5.3% City of Appleton, Wisconsin, Waterworks Revenue Refunding Bonds, Series 2001: 3,705 5.375%, 1/01/20 - FGIC Insured 1/12 at 100.00 Aaa 4,002,993 1,850 5.000%, 1/01/21 - FGIC Insured 1/12 at 100.00 Aaa 1,927,145 1,735 Evansville Community School District, Dane, Green and 4/11 at 100.00 AAA 1,887,385 Rock Counties, Wisconsin, General Obligation Refunding Bonds, Series 2001, 5.500%, 4/01/20 - FGIC Insured 12,250 City of La Crosse, Wisconsin, Pollution Control Refunding 12/08 at 102.00 AAA 13,390,843 Revenue Bonds, Series 1997B, Dairyland Power Cooperative Project, 5.550%, 2/01/15 - AMBAC Insured 420 Wisconsin Housing and Economic Development Authority, 10/09 at 100.00 AA- 434,998 Home Ownership Revenue Bonds, 1999 Series, 5.750%, 4/01/30 (Alternative Minimum Tax) 3,180 State of Wisconsin, Clean Water Revenue Bonds, 6/09 at 100.00 AA+ 3,562,233 1999 Series 1, 5.500%, 6/01/17 4,000 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 A+ 4,020,360 Bonds, Series 2001, Froedert & Community Health Obligated Group, 5.375%, 10/01/30 2,500 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 100.00 BBB+ 2,545,000 Bonds, Marshfield Clinic, Series 2001B, 6.000%, 2/15/25 - ------------------------------------------------------------------------------------------------------------------------------------ $ 868,450 Total Long-Term Investments (cost $872,273,993) - 149.2% 899,227,653 =============----------------------------------------------------------------------------------------------------------------------- 55 Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 0.5% $ 3,000 University of Toledo, Ohio, General Receipts Variable Rate VMIG-1 $ 3,000,000 Demand Bonds, Series 2002, 1.400%, 6/01/32 - FGIC Insured+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 3,000 Total Short-Term Investments (cost $3,000,000) 3,000,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $875,273,993) - 149.7% 902,227,653 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 12,520,612 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.8)% (312,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $602,748,265 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. # On December 9, 2002, UAL Corporation, the holding company of United Air Lines, Inc., filed for federal bankruptcy protection. The Adviser determined that it was likely United would not remain current of their interest payment obligations with respect to these bonds and thus has stopped accruing interest. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 56
Statement of ASSETS AND LIABILITIES April 30, 2003 (Unaudited)
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $1,295,855,632, $946,742,457, $996,154,901, $823,296,195, $629,868,132 and $875,273,993) $1,395,172,698 $1,011,278,549 $1,048,867,510 $882,178,405 $654,015,376 $902,227,653 Receivables: Interest 22,689,838 19,627,698 18,496,738 15,587,269 11,882,747 15,646,856 Investments sold 2,402,205 8,348,665 380,000 95,000 13,265,093 110,000 Other assets 45,579 29,400 29,836 27,203 3,838 3,405 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 1,420,310,320 1,039,284,312 1,067,774,084 897,887,877 679,167,054 917,987,914 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 113,363 3,614,100 3,259,718 1,488,215 4,230,985 517,009 Payable for investments purchased 527,332 508,472 -- -- 7,074,657 2,229,398 Accrued expenses: Management fees 712,107 524,792 537,542 236,732 178,752 241,705 Organization and offering costs -- -- -- -- -- 3,709 Other 346,628 249,145 259,567 165,302 128,323 193,920 Preferred share dividends payable 58,688 38,994 24,004 18,612 14,246 53,908 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,758,118 4,935,503 4,080,831 1,908,861 11,626,963 3,239,649 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value $ 479,000,000 $ 358,000,000 $ 380,000,000 $295,000,000 $222,000,000 $312,000,000 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 939,552,202 $ 676,348,809 $ 683,693,253 $600,979,016 $445,540,091 $602,748,265 ==================================================================================================================================== Common shares outstanding 59,914,073 42,980,333 45,540,872 39,227,847 29,282,000 40,310,119 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.68 $ 15.74 $ 15.01 $ 15.32 $ 15.22 $ 14.95 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 599,141 $ 429,803 $ 455,409 $ 392,278 $ 292,820 $ 403,101 Paid-in surplus 836,304,463 600,296,194 635,361,720 557,356,422 416,101,191 572,748,338 Undistributed net investment income 10,656,439 9,195,906 6,378,602 6,542,543 5,140,003 3,878,307 Accumulated net realized gain (loss) from investment transactions (7,324,907) 1,890,814 (11,215,087) (22,194,437) (141,167) (1,235,141) Net unrealized appreciation of investments 99,317,066 64,536,092 52,712,609 58,882,210 24,147,244 26,953,660 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 939,552,202 $ 676,348,809 $ 683,693,253 $600,979,016 $445,540,091 $602,748,265 ==================================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 200,000,000 Unlimited Unlimited Unlimited Preferred 1,000,000 1,000,000 1,000,000 Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 57 Statement of OPERATIONS Six Months Ended April 30, 2003 (Unaudited)
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $37,558,897 $28,731,794 $27,916,060 $24,191,353 $18,645,716 $23,694,684 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 4,293,379 3,163,837 3,246,432 2,741,558 2,064,500 2,797,170 Preferred shares - auction fees 613,627 443,821 471,096 380,577 275,220 386,795 Preferred shares - dividend disbursing agent fees 24,795 24,795 19,836 14,876 14,876 14,876 Shareholders' servicing agent fees and expenses 129,456 76,225 87,885 13,961 6,111 7,739 Custodian's fees and expenses 150,173 120,723 115,607 97,618 74,157 101,238 Directors'/Trustees' fees and expenses 8,623 6,747 7,309 5,086 4,170 6,617 Professional fees 23,526 16,208 39,674 534,876 20,720 19,524 Shareholders' reports - printing and mailing expenses 60,499 33,794 49,815 39,893 21,219 38,360 Stock exchange listing fees 11,634 8,451 8,933 7,998 2,123 2,925 Investor relations expense 92,337 67,154 71,341 56,640 40,811 54,859 Other expenses 34,149 30,493 33,144 21,576 17,053 22,142 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 5,442,198 3,992,248 4,151,072 3,914,659 2,540,960 3,452,245 Custodian fee credit (11,699) (10,330) (14,527) (9,438) (8,342) (11,229) Expense reimbursement -- -- -- (1,316,238) (984,618) (1,343,477) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 5,430,499 3,981,918 4,136,545 2,588,983 1,548,000 2,097,539 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 32,128,398 24,749,876 23,779,515 21,602,370 17,097,716 21,597,145 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investments (7,324,602) 1,942,395 (9,597,597) (4,628,305) (140,742) 283,149 Change in net unrealized appreciation (depreciation) of investments 25,578,807 14,193,538 27,942,086 18,700,525 8,533,008 13,744,399 - ------------------------------------------------------------------------------------------------------------------------------------ Net gain from investments 18,254,205 16,135,933 18,344,489 14,072,220 8,392,266 14,027,548 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (2,388,045) (1,730,616) (1,940,109) (1,479,750) (1,136,350) (1,627,053) From accumulated net realized gains from investments (139,879) (242,543) -- -- (28,710) -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (2,527,924) (1,973,159) (1,940,109) (1,479,750) (1,165,060) (1,627,053) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $47,854,679 $38,912,650 $40,183,895 $34,194,840 $24,324,922 $33,997,640 ==================================================================================================================================== See accompanying notes to financial statements. 58
Statement of CHANGES IN NET ASSETS (Unaudited)
PERFORMANCE PLUS (NPP) MUNICIPAL ADVANTAGE (NMA) MARKET OPPORTUNITY (NMO) --------------------------------- ---------------------------------- -------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 4/30/03 10/31/02 4/30/03 10/31/02 4/30/03 10/31/02 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 32,128,398 $ 65,273,913 $ 24,749,876 $ 49,642,569 $ 23,779,515 $ 50,666,010 Net realized gain (loss) from investments (7,324,602) 1,658,527 1,942,395 3,175,745 (9,597,597) (1,622,794) Change in net unrealized appreciation (depreciation) of investments 25,578,807 (15,059,549) 14,193,538 (13,241,244) 27,942,086 (30,326,455) Distributions to Preferred shareholders: From net investment income (2,388,045) (5,916,338) (1,730,616) (4,136,412) (1,940,109) (4,944,432) From accumulated net realized gains from investments (139,879) (720,966) (242,543) (1,143,082) -- (289,119) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 47,854,679 45,235,587 38,912,650 34,297,576 40,183,895 13,483,210 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (28,162,757) (53,683,146) (21,849,700) (40,570,160) (21,404,211) (41,601,362) From accumulated net realized gains from investments (1,515,794) (2,612,288) (2,984,339) (4,129,879) -- (992,816) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (29,678,551) (56,295,434) (24,834,039) (44,700,039) (21,404,211) (42,594,178) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Preferred shares offering costs 400 (501,535) -- -- -- -- Other -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 400 (501,535) -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 18,176,528 (11,561,382) 14,078,611 (10,402,463) 18,779,684 (29,110,968) Net assets applicable to Common shares at the beginning of period 921,375,674 932,937,056 662,270,198 672,672,661 664,913,569 694,024,537 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $939,552,202 $921,375,674 $676,348,809 $662,270,198 $683,693,253 $664,913,569 ==================================================================================================================================== Undistributed net investment income at the end of period $ 10,656,439 $ 9,074,385 $ 9,195,906 $ 8,026,346 $ 6,378,602 $ 5,943,407 ==================================================================================================================================== See accompanying notes to financial statements. 59
Statement of CHANGES IN NET ASSETS (Unaudited) (continued)
DIVIDEND ADVANTAGE (NAD) DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF) --------------------------------- ---------------------------------- -------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 4/30/03 10/31/02 4/30/03 10/31/02 4/30/03 10/31/02 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 21,602,370 $ 44,433,341 $ 17,097,716 $ 33,702,642 $ 21,597,145 $ 41,656,411 Net realized gain (loss) from investments (4,628,305) 140,122 (140,742) 301,752 283,149 (1,471,054) Change in net unrealized appreciation (depreciation) of investments 18,700,525 (107,226) 8,533,008 (9,579,398) 13,744,399 7,512,570 Distributions to Preferred shareholders: From net investment income (1,479,750) (3,979,694) (1,136,350) (3,000,574) (1,627,053) (4,027,379) From accumulated net realized gains from investments -- -- (28,710) (64,965) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 34,194,840 40,486,543 24,324,922 21,359,457 33,997,640 43,670,548 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (19,260,872) (36,722,714) (14,421,387) (26,749,093) (18,462,036) (36,520,445) From accumulated net realized gains from investments -- -- (272,342) (298,687) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (19,260,872) (36,722,714) (14,693,729) (27,047,780) (18,462,036) (36,520,445) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 1,192,197 -- -- -- 43,936 Preferred shares offering costs -- -- -- 286,674 (31) (3,494,972) Other -- -- 2,137 -- 413,733 -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 1,192,197 2,137 286,674 413,702 (3,451,036) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 14,933,968 4,956,026 9,633,330 (5,401,649) 15,949,306 3,699,067 Net assets applicable to Common shares at the beginning of period 586,045,048 581,089,022 435,906,761 441,308,410 586,798,959 583,099,892 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $600,979,016 $586,045,048 $445,540,091 $435,906,761 $602,748,265 $586,798,959 ==================================================================================================================================== Undistributed net investment income at the end of period $ 6,542,543 $ 5,680,795 $ 5,140,003 $ 3,600,024 $ 3,878,307 $ 2,370,251 ====================================================================================================================================
See accompanying notes to financial statements. 60 Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The National Funds (the "Funds") covered in this report and their corresponding Common share stock exchange symbols are Nuveen Performance Plus Municipal Fund, Inc. (NPP), Nuveen Municipal Advantage Fund, Inc. (NMA), Nuveen Municipal Market Opportunity Fund, Inc. (NMO), Nuveen Dividend Advantage Municipal Fund (NAD), Nuveen Dividend Advantage Municipal Fund 2 (NXZ) and Nuveen Dividend Advantage Municipal Fund 3 (NZF). Performance Plus (NPP), Municipal Advantage (NMA), Market Opportunity (NMO) and Dividend Advantage (NAD) are traded on the New York Stock Exchange while Dividend Advantage 2 (NXZ) and Dividend Advantage 3 (NZF) are traded on the American Stock Exchange. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end, diversified management investment companies. Each Fund seeks to provide current income exempt from regular federal income tax by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States. Securities Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors/Trustees. When price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers and general market conditions. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish a fair value for the security. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At April 30, 2003, Dividend Advantage 2 (NXZ) had outstanding when-issued and delayed delivery purchase commitments of $7,074,657. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Federal Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income to its shareholders. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal income tax, to retain such tax-exempt status when distributed to shareholders of the Funds. 61 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared and paid monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. Preferred Shares The Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in more than one Series. The dividend rate on each Series may change every seven days, as set pursuant to a dutch auction process by the auction agent, and is payable at or near the end of each rate period. The number of Preferred shares outstanding, by Series and in total, for each Fund is as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - --------------------------------------------------------------------------------------------------------- Number of shares: Series M 4,000 3,000 4,000 4,000 3,000 -- Series T 4,000 3,000 4,000 4,000 3,000 -- Series W 4,000 3,000 3,200 -- -- 4,160 Series TH 3,160 2,320 -- 3,800 -- 4,160 Series F 4,000 3,000 4,000 -- 2,880 4,160 - --------------------------------------------------------------------------------------------------------- Total 19,160 14,320 15,200 11,800 8,880 12,480 =========================================================================================================
Effective April 5, 2002, Performance Plus (NPP)issued 1,400 Series TH $25,000 stated value Preferred shares. Effective November 16, 2001, Dividend Advantage 3 (NZF) issued 4,160 Series W, 4,160 Series TH and 4,160 Series F $25,000 stated value Preferred shares. 62 Derivative Financial Instruments The Funds may invest in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the six months ended April 30, 2003. 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. Offering Costs Costs incurred by Performance Plus (NPP) and Dividend Advantage 3 (NZF) in connection with their offerings of Preferred shares ($501,135 and $3,495,003, respectively) were recorded as a reduction to paid-in surplus. 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 applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FUND SHARES Transactions in Common and Preferred shares were as follows:
MUNICIPAL MARKET PERFORMANCE PLUS (NPP) ADVANTAGE (NMA) OPPORTUNITY (NMO) ---------------------- -------------------- ------------------------ SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 4/30/03 10/31/02 4/30/03 10/31/02 4/30/03 10/31/02 - ------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- ============================================================================================================ Preferred shares sold -- 1,400 -- -- -- -- ============================================================================================================ DIVIDEND ADVANTAGE (NAD) DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF) ------------------------ -------------------------- -------------------------- SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 4/30/03 10/31/02 4/30/03 10/31/02 4/30/03 10/31/02 - ------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions -- 80,089 -- -- -- 3,119 ============================================================================================================ Preferred shares sold -- -- -- -- -- 12,480 ============================================================================================================
63 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities during the six months ended April 30, 2003, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - --------------------------------------------------------------------------------------------------------- Purchases $84,450,649 $28,553,582 $68,067,949 $24,877,514 $19,168,531 $21,285,411 Sales and maturities 71,462,945 42,313,319 71,188,012 31,565,093 24,150,203 16,871,020 =========================================================================================================
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 timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions. At April 30, 2003, the cost of investments were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - ----------------------------------------------------------------------------------------------------------- Cost of Investments $1,294,970,480 $946,213,741 $995,571,169 $822,779,237 $629,692,386 $875,246,141 ===========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation on investments at April 30, 2003, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - --------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $116,460,923 $86,275,985 $90,306,867 $75,124,399 $38,195,557 $38,933,598 Depreciation (16,258,705) (21,211,177) (37,010,526) (15,725,231) (13,872,567) (11,952,086) - --------------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments $100,202,218 $65,064,808 $53,296,341 $59,399,168 $24,322,990 $26,981,512 =========================================================================================================
64 The tax components of undistributed net investment income and net realized gains at October 31, 2002, the Funds' last fiscal year end, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - --------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income $12,918,958 $10,930,739 $8,966,521 $8,335,162 $5,813,198 $5,437,544 Undistributed net ordinary income * 3,425 179,625 35,363 44,650 185,573 -- Undistributed net long-term capital gains 1,655,369 3,225,301 -- -- 115,054 -- =========================================================================================================
The tax character of distributions paid during the fiscal year ended October 31, 2002, the Funds' last fiscal year end, was designated for purposes of the dividends paid deduction as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - --------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $59,286,613 $44,278,184 $46,362,835 $40,491,284 $29,610,711 $37,463,976 Distributions from net ordinary income * 256,881 1,271,708 -- -- 363,652 -- Distributions from net long-term capital gains 3,076,373 4,070,716 1,281,935 -- -- -- =========================================================================================================
* Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At October 31, 2002, the Fund's last fiscal year end, the following 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:
MARKET DIVIDEND DIVIDEND OPPORTUNITY ADVANTAGE ADVANTAGE 3 (NMO) (NAD) (NZF) - --------------------------------------------------------------------------------------------------------- Expiration year: 2007 $ -- $ 2,980,482 $ -- 2008 -- 14,462,547 -- 2009 -- -- 47,239 2010 1,622,794 -- 1,471,054 - --------------------------------------------------------------------------------------------------------- Total $1,622,794 $17,443,029 $1,518,293 =========================================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under Performance Plus' (NPP), Municipal Advantage's (NMA) and Market Opportunity's (NMO) investment management agreements with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. (formerly, The John Nuveen Company), each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE - -------------------------------------------------------------------------------- For the first $125 million .6500% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For the next $3 billion .5875 For net assets over $5 billion .5750 ================================================================================ 65 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) Under Dividend Advantage's (NAD), Dividend Advantage 2's (NXZ) and Dividend Advantage 3's (NZF) investment management agreements with the Adviser, each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE - -------------------------------------------------------------------------------- For the first $125 million .6500% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For net assets over $2 billion .5750 ================================================================================ For the first ten years of Dividend Advantage's (NAD) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts, and for the time periods set forth below: YEAR ENDING YEAR ENDING JULY 31, JULY 31, - -------------------------------------------------------------------------------- 1999* .30% 2005 .25% 2000 .30 2006 .20 2001 .30 2007 .15 2002 .30 2008 .10 2003 .30 2009 .05 2004 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Dividend Advantage (NAD) for any portion of its fees and expenses beyond July 31, 2009. For the first ten years of Dividend Advantage 2's (NXZ) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts, and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Dividend Advantage 2 (NXZ) for any portion of its fees and expenses beyond March 31, 2011. 66 For the first ten years of Dividend Advantage 3's (NZF) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts, and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Dividend Advantage 3 (NZF) for any portion of its fees and expenses beyond September 30, 2011. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Directors/Trustees who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser. 6. INVESTMENT COMPOSITION At April 30, 2003, the revenue sources by municipal purpose, expressed as a percent of total investments, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - ---------------------------------------------------------------------------------------------------------- Consumer Staples 5% 4% 5% 4% 3% 4% Education and Civic Organizations 4 -- 5 5 4 5 Energy -- 1 -- -- 3 -- Healthcare 9 16 11 16 22 16 Housing/Multifamily 6 3 1 1 1 4 Housing/Single Family 8 13 1 5 8 9 Long-Term Care 1 2 -- 3 1 1 Tax Obligation/General 15 9 22 15 5 9 Tax Obligation/Limited 13 9 16 12 15 13 Transportation 8 10 17 13 13 17 U.S. Guaranteed 14 13 9 11 7 1 Utilities 11 14 7 11 7 8 Water and Sewer 6 5 5 3 11 12 Other -- 1 1 1 -- 1 - ---------------------------------------------------------------------------------------------------------- 100% 100% 100% 100% 100% 100% ==========================================================================================================
Certain investments owned by the Funds are either covered by insurance issued by several private insurers or are backed by an escrow or trust containing U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest in the event of default (61% for Performance Plus (NPP), 54% for Municipal Advantage (NMA), 54% for Market Opportunity (NMO), 62% for Dividend Advantage (NAD), 52% for Dividend Advantage 2 (NXZ) and 67% for Dividend Advantage 3 (NZF)). For additional information regarding each investment security, refer to the Portfolio of Investments of each Fund. 67 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on June 2, 2003, to shareholders of record on May 15, 2003, as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - --------------------------------------------------------------------------------------------------------- Dividend per share $.0795 $.0860 $.0790 $.0820 $.0845 $.0780 =========================================================================================================
68 Financial HIGHLIGHTS (Unaudited) 69 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ---------------------------------------------------------------- ------------------------------ Distributions Distributions from Net from Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== PERFORMANCE PLUS (NPP) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2003(d) $15.38 $ .54 $ .30 $(.04) $-- $ .80 $ (.47) $(.03) $ (.50) 2002 15.57 1.09 (.22) (.10) (.01) .76 (.90) (.04) (.94) 2001 14.36 1.10 1.17 (.23) -- 2.04 (.83) -- (.83) 2000 13.69 1.12 .69 (.29) -- 1.52 (.84) -- (.84) 1999 15.43 1.12 (1.73) (.21) -- (.82) (.91) (.01) (.92) 1998 15.22 1.19 .20 (.23) -- 1.16 (.95) -- (.95) MUNICIPAL ADVANTAGE (NMA) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2003(d) 15.41 .58 .38 (.04) (.01) .91 (.51) (.07) (.58) 2002 15.65 1.15 (.22) (.10) (.03) .80 (.94) (.10) (1.04) 2001 14.61 1.16 1.10 (.24) (.03) 1.99 (.87) (.08) (.95) 2000 13.98 1.24 .63 (.33) -- 1.54 (.91) -- (.91) 1999 15.85 1.24 (1.85) (.24) -- (.85) (1.00) -- (1.00) 1998 15.68 1.24 .17 (.24) -- 1.17 (1.00) -- (1.00) MARKET OPPORTUNITY (NMO) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2003(d) 14.60 .52 .40 (.04) -- .88 (.47) -- (.47) 2002 15.24 1.11 (.70) (.11) (.01) .29 (.91) (.02) (.93) 2001 14.45 1.16 .80 (.26) (.01) 1.69 (.87) (.03) (.90) 2000 14.11 1.24 .38 (.34) -- 1.28 (.94) -- (.94) 1999 15.96 1.26 (1.83) (.24) -- (.81) (1.01) (.01) (1.02) 1998 15.85 1.25 .15 (.24) (.01) 1.15 (1.01) (.03) (1.04) DIVIDEND ADVANTAGE (NAD) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2003(d) 14.94 .55 .36 (.04) -- .87 (.49) -- (.49) 2002 14.84 1.13 .01 (.10) -- 1.04 (.94) -- (.94) 2001 13.59 1.16 1.21 (.24) -- 2.13 (.88) -- (.88) 2000 12.78 1.15 .84 (.31) -- 1.68 (.86) -- (.86) 1999(a) 14.33 .39 (1.47) (.07) -- (1.15) (.30) -- (.30) DIVIDEND ADVANTAGE 2 (NXZ) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2003(d) 14.89 .58 .29 (.04) -- .83 (.49) (.01) (.50) 2002 15.07 1.15 (.32) (.10) -- .73 (.91) (.01) (.92) 2001(b) 14.33 .52 .88 (.09) -- 1.31 (.45) -- (.45) DIVIDEND ADVANTAGE 3 (NZF) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2003(d) 14.56 .54 .34 (.04) -- .84 (.46) -- (.46) 2002 14.47 1.03 .16 (.10) -- 1.09 (.91) -- (.91) 2001(c) 14.33 .03 .14 -- -- .17 -- -- -- ==================================================================================================================================== Total Returns ----------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ============================================================================================ PERFORMANCE PLUS (NPP) - -------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(d) $-- $15.68 $14.8200 7.40% 5.26% 2002 (.01) 15.38 14.2800 4.51 5.03 2001 -- 15.57 14.5800 26.96 14.51 2000 (.01) 14.36 12.1875 .90 11.47 1999 -- 13.69 12.9375 (10.76) (5.63) 1998 -- 15.43 15.4375 9.48 7.87 MUNICIPAL ADVANTAGE (NMA) - -------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(d) -- 15.74 15.3200 8.63 5.99 2002 -- 15.41 14.6600 5.89 5.39 2001 -- 15.65 14.8500 23.35 13.97 2000 -- 14.61 12.8750 1.46 11.48 1999 (.02) 13.98 13.6250 (8.16) (5.83) 1998 -- 15.85 15.8125 5.58 7.65 MARKET OPPORTUNITY (NMO) - -------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(d) -- 15.01 14.4200 8.04 6.12 2002 -- 14.60 13.8000 .49 2.03 2001 -- 15.24 14.6500 20.03 11.93 2000 -- 14.45 13.0000 2.97 9.41 1999 (.02) 14.11 13.5625 (9.18) (5.49) 1998 -- 15.96 15.9375 5.40 7.45 DIVIDEND ADVANTAGE (NAD) - -------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(d) -- 15.32 15.0800 7.50 5.93 2002 -- 14.94 14.5000 2.01 7.26 2001 -- 14.84 15.1400 27.35 16.03 2000 (.01) 13.59 12.6250 (.79) 13.61 1999(a) (.10) 12.78 13.6250 (7.29) (8.83) DIVIDEND ADVANTAGE 2 (NXZ) - -------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(d) -- 15.22 14.7400 9.73 5.67 2002 .01 14.89 13.9100 (.81) 5.16 2001(b) (.12) 15.07 14.9600 2.75 8.39 DIVIDEND ADVANTAGE 3 (NZF) - -------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(d) .01 14.95 14.0800 7.58 5.91 2002 (.09) 14.56 13.5300 (4.26) 7.20 2001(c) (.03) 14.47 15.0700 .47 .98 ============================================================================================ Ratios/Supplemental Data ------------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** --------------------------- ------------------------------ Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ================================================================================================================================ PERFORMANCE PLUS (NPP) - -------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(d) $939,552 1.19%* 7.00%* 1.18%* 7.00%* 5% 2002 921,376 1.18 7.11 1.17 7.12 11 2001 932,937 1.15 7.29 1.14 7.30 14 2000 860,556 1.17 8.09 1.16 8.10 25 1999 820,432 1.15 7.48 1.12 7.51 30 1998 922,187 1.11 7.74 1.11 7.74 23 MUNICIPAL ADVANTAGE (NMA) - -------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(d) 676,349 1.21* 7.49* 1.20* 7.49* 3 2002 662,270 1.22 7.55 1.22 7.55 17 2001 672,673 1.23 7.60 1.22 7.61 18 2000 628,099 1.23 8.77 1.23 8.77 39 1999 600,923 1.16 8.12 1.16 8.12 29 1998 675,410 1.12 7.84 1.12 7.84 8 MARKET OPPORTUNITY (NMO) - -------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(d) 683,693 1.25* 7.13* 1.24* 7.13* 7 2002 664,914 1.24 7.50 1.24 7.51 13 2001 694,025 1.23 7.73 1.23 7.74 11 2000 658,070 1.25 8.76 1.23 8.77 52 1999 642,643 1.15 8.18 1.14 8.19 31 1998 721,207 1.09 7.88 1.09 7.88 13 DIVIDEND ADVANTAGE (NAD) - -------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(d) 600,979 1.34* 6.93* .88* 7.38* 3 2002 586,045 1.25 7.24 .80 7.70 7 2001 581,089 1.26 7.56 .78 8.04 12 2000 531,571 1.22 8.34 .73 8.83 37 1999(a) 499,783 1.06* 6.10* .58* 6.58* 16 DIVIDEND ADVANTAGE 2 (NXZ) - -------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(d) 445,540 1.16* 7.38* .71* 7.84* 3 2002 435,907 1.17 7.32 .70 7.79 9 2001(b) 441,308 1.13* 5.56* .63* 6.06* 5 DIVIDEND ADVANTAGE 3 (NZF) - -------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(d) 602,748 1.18* 6.90* .72* 7.37* 2 2002 586,799 1.17 6.78 .70 7.25 7 2001(c) 583,100 .72* 2.05* .42* 2.36* 1 ================================================================================================================================ Preferred Shares at End of Period ------------------------------------------ Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ======================================================================= PERFORMANCE PLUS (NPP) - ----------------------------------------------------------------------- Year Ended 10/31: 2003(d) $479,000 $25,000 $74,037 2002 479,000 25,000 73,089 2001 444,000 25,000 77,530 2000 444,000 25,000 73,455 1999 400,000 25,000 76,277 1998 400,000 25,000 82,637 MUNICIPAL ADVANTAGE (NMA) - ----------------------------------------------------------------------- Year Ended 10/31: 2003(d) 358,000 25,000 72,231 2002 358,000 25,000 71,248 2001 358,000 25,000 71,974 2000 358,000 25,000 68,862 1999 358,000 25,000 66,964 1998 300,000 25,000 81,284 MARKET OPPORTUNITY (NMO) - ----------------------------------------------------------------------- Year Ended 10/31: 2003(d) 380,000 25,000 69,980 2002 380,000 25,000 68,744 2001 380,000 25,000 70,660 2000 380,000 25,000 68,294 1999 380,000 25,000 67,279 1998 300,000 25,000 85,101 DIVIDEND ADVANTAGE (NAD) - ----------------------------------------------------------------------- Year Ended 10/31: 2003(d) 295,000 25,000 75,930 2002 295,000 25,000 74,665 2001 295,000 25,000 74,245 2000 295,000 25,000 70,048 1999(a) 295,000 25,000 67,354 DIVIDEND ADVANTAGE 2 (NXZ) - ----------------------------------------------------------------------- Year Ended 10/31: 2003(d) 222,000 25,000 75,173 2002 222,000 25,000 74,089 2001(b) 222,000 25,000 74,697 DIVIDEND ADVANTAGE 3 (NZF) - ----------------------------------------------------------------------- Year Ended 10/31: 2003(d) 312,000 25,000 73,297 2002 312,000 25,000 72,019 2001(c) -- -- -- ======================================================================= * Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Common Share Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in Common share net asset value per share. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares, where applicable. (a) For the period May 26, 1999 (commencement of operations) through October 31, 1999. (b) For the period March 28, 2001 (commencement of operations) through October 31, 2001. (c) For the period September 25, 2001 (commencement of operations) through October 31, 2001. (d) For the six months ended April 30, 2003. See accompanying notes to financial statements. 70-71 SPREAD
Build Your Wealth AUTOMATICALLY SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBILITY You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 72 Fund INFORMATION BOARD OF DIRECTORS/TRUSTEES Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale FUND MANAGER Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Morgan, Lewis & Bockius LLP Washington, D.C. INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL POLICY CHANGE On November 14, 2002, the Board adopted a policy that allows these Funds, in addition to investments in municipal bonds, to invest up to 5% of its net assets (including assets attributable to preferred shares, if any) in tax-exempt or taxable fixed-income securities or equity securities for the purpose of acquiring control of an issuer whose municipal bonds (a) the Fund already owns and (b) have deteriorated or are expected shortly to deteriorate significantly in credit quality, provided Nuveen Advisory determines that such investment should enable the Fund to better maximize the value of its existing investment in such issuer. This policy is a non-fundamental policy of each Fund which means that it can be changed at any time by the Board of Trustees without vote of the shareholders. 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 (including change in NAV and reinvested dividends) that would have been necessary on an annual basis to equal the investment's actual performance over the time period being considered. Average Effective Maturity: The average of all the maturities of the bonds in a fund's portfolio, computed by weighting each maturity date (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions. Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's sensitivity to changes in interest rates. Generally, the longer a bond or fund's duration, the more the price of the bond or fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. Market Yield (also known as Dividend Yield or Current Yield): An investment's current annualized dividend divided by its current market price. Net Asset Value (NAV): A fund's NAV 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. Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. - --------- Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the six-month period ended April 30, 2003. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 73 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. Managing $80 billion in assets, 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 four distinct brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment portfolios. To learn more about the products and services Nuveen Investments offers and for a prospectus, where applicable, talk to your financial advisor, or call us at (800) 257-8787. Please read the information carefully before you invest. Distributed by NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606 | www.nuveen.com ESA-B-0403D ITEM 2. CODE OF ETHICS. Not applicable at this time. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable at this time. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable at this time. ITEMS 5-6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable to this registrant. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's Disclosure Controls and Procedures are effective, based on their evaluation of such Disclosure Controls and Procedures as of a date within 90 days of the filing of this report on Form N-CSR. (b) There were no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of our evaluation. ITEM 10. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a) 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. (b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) in the exact form set forth below: Attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Municipal Market Opportunity Fund, Inc. ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date July 8, 2003 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (Principal Executive Officer) Date July 8, 2003 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (Principal Financial Officer) Date July 8, 2003 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 3 file002.txt CERTIFICATIONS Certification Pursuant to Section 302 of the Sarbanes-Oxley Act I, Gifford R. Zimmerman, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Municipal Market Opportunity Fund, Inc.; 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; and 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 officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: July 8, 2003 ----------------------- /s/ Gifford R. Zimmerman --------------------- Chief Administrative Officer (principal executive officer) Certification Pursuant to Section 302 of the Sarbanes-Oxley Act I, Stephen D. Foy, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Municipal Market Opportunity Fund, Inc.; 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; and 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 officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: July 8, 2003 ----------------------- /s/ Stephen D. Foy --------------------- Vice President and Controller (principal financial officer) EX-99.906CERT 4 file003.txt CERTIFICATIONS Certification Pursuant to Section 906 of the Sarbanes-Oxley Act I, Gifford R. Zimmerman, Chief Administrative Officer of Nuveen Municipal Market Opportunity Fund, Inc., certify that: 1. The Form N-CSR of the Fund (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. A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Nuveen Municipal Market Opportunity Fund, Inc. and will be retained by Nuveen Municipal Market Opportunity Fund, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. Date: July 8, 2003 ----------------------- /s/ Gifford R. Zimmerman --------------------- Chief Administrative Officer (chief executive officer) Certification Pursuant to Section 906 of the Sarbanes-Oxley Act I, Stephen D. Foy, Principal Financial Officer of Nuveen Municipal Market Opportunity Fund, Inc., certify that: 1. The Form N-CSR of the Fund (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. A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Nuveen Municipal Market Opportunity Fund, Inc. and will be retained by Nuveen Municipal Market Opportunity Fund, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. Date: July 8, 2003 ----------------------- /s/ Stephen D. Foy --------------------- Vice President, Controller (Chief Financial Officer) -----END PRIVACY-ENHANCED MESSAGE-----