-----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, FsX2qFQNQSBQ5LFYc72i1JTlLPKRFfsP7H7xBk1lwjzQUoIB570cqsZKvQg3vI5i drqi6Z79TzL/1mYWBLxZtw== 0000891804-06-002193.txt : 20060707 0000891804-06-002193.hdr.sgml : 20060707 20060707082113 ACCESSION NUMBER: 0000891804-06-002193 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060430 FILED AS OF DATE: 20060707 DATE AS OF CHANGE: 20060707 EFFECTIVENESS DATE: 20060707 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-06040 FILM NUMBER: 06949613 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-CSRS 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 811-06040 --------------------- 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 31 ------------------ Date of reporting period: April 30, 2006 ------------------ 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, 2006 Nuveen Investments Municipal Exchange-Traded Closed-End Funds 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 NUVEEN DIVIDEND ADVANTAGE MUNICIPAL FUND 3 NZF Photo of: Man, woman and child at the beach. Photo of: A child. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Woman Photo of: Man and child Photo of: Woman NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL. It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready -- no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report, and save it on your computer if you wish. ------------------------ DELIVERY DIRECT TO YOUR E-MAIL INBOX ------------------------ IT'S FAST, EASY & FREE: WWW.INVESTORDELIVERY.COM if you get your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS if you get your Nuveen Fund dividends and statements directly from Nuveen. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) Logo: NUVEEN Investments Photo: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board CHAIRMAN'S LETTER TO SHAREHOLDERS Once again, I am pleased to report that over the six-month period covered by this report your Fund continued to provide you with attractive monthly tax-free income. For more details about the management strategy and performance of your Fund, please read the Portfolio Manager's Comments, the Dividend and Share Price Information, and the Performance Overview sections of this report. "PORTFOLIO DIVERSIFICATION IS A RECOGNIZED WAY TO TRY TO REDUCE SOME OF THE RISK THAT COMES WITH INVESTING." Municipal bonds can be an important building block in a well balanced investment portfolio. In addition to providing attractive tax-free monthly income, a municipal bond investment like your Fund may help you achieve and benefit from greater portfolio diversification. Portfolio diversification is a recognized way to try to reduce some of the risk that comes with investing. I encourage you to contact your personal financial advisor who may help explain this important investment strategy. Nuveen Investments is pleased to offer you choices when it comes to receiving your fund reports. In addition to mailed print copies, you can also sign up to receive future Fund reports and other Fund information by e-mail and the Internet. Not only will you receive the information faster, but this also may help lower your Fund's expenses. The inside front cover of this report contains information on how you can sign up. We are grateful that you have chosen us as a partner as you pursue your financial goals, and we look forward to continuing to earn your trust in the months and years ahead. At Nuveen Investments, our mission continues to be to assist you and your financial advisor by offering investment services and products that can help you to secure your financial objectives. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board June 12, 2006 Nuveen Investments Municipal Exchange-Traded Closed-End Funds NPP, NMA, NMO, NAD, NXZ, NZF PORTFOLIO MANAGER'S COMMENTS Portfolio manager Tom Spalding reviews key investment strategies and the six-month performance of these six Funds. With 29 years of investment experience at Nuveen, Tom has managed NXZ since its inception in 2001 and NPP, NMA, NMO, NAD, and NZF since 2003. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX MONTHS ENDED APRIL 30, 2006? During this reporting period, we saw a general increase in interest rates, although rates at the longer end of the yield curve remained more stable than those at the short end throughout much of the period. Between November 1, 2005 and April 30, 2006, the Federal Reserve implemented four increases of 0.25% each in the fed funds rate, raising this short-term target by 100 basis points--from 3.75% to 4.75%. (On May 10, 2006, the fed funds rate was increased by another 25 basis points to 5%, marking the Fed's 16th consecutive quarter-point hike since June 2004.) In contrast, the yield on the benchmark 10-year U.S. Treasury note ended April 2006 at 5.06%, up from 4.55% six months earlier, while the yield on the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term municipal market rates, was 5.22% at the end of April 2006, an increase of just two basis points from the beginning of November 2005. As interest rates increased, bond valuations generally declined, and the yield curve flattened as short-term rates approached the levels of longer-term rates. In this environment, one of our key strategies continued to be careful duration1 management, part of which included efforts to more closely align the duration and yield curve positioning of these Funds. Depending on the needs of the individual Fund, our purchase activity focused on attractively priced bonds maturing in 10 to 15 years in Funds that were close to their duration target and in 20 years and longer in Funds where the duration needed lengthening. As the yield curve continued to flatten, we believed that bonds in these parts of the curve generally offered better value and reward opportunities more commensurate with their risk levels. As the period progressed, we started to see more opportunities to add value at the longer end of the curve, and we began to slightly extend the Funds' durations. In looking for potential purchase candidates, we kept an opportunistic eye toward all types of issuance that we believed could add value to the Funds' portfolios and keep the Funds well diversified geographically. Overall, portfolio activity was relatively light during this period. This was due in part to the fact that these Funds entered the reporting period fully invested and with routine call exposure. Another factor was the 5.5% decline in municipal supply during this six-month period compared with the same period 12 months earlier (November 2004-April 2005). The decrease in supply was even more evident 1 Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds displaying more sensitivity to these changes than bonds with shorter durations. 4 during the first four months of 2006, when new issuance dropped almost 25% from the levels of January-April 2005. At the same time, demand for municipal bonds continued to be diverse and broad-based, with retail investors, property and casualty insurance companies, and third-party investors--such as hedge funds and arbitrage accounts--all participating in the market. In general, much of the new supply was highly rated and/or insured, and the majority of our new purchases during this time were higher-rated credits. While we continued to emphasize maintaining the Funds' weightings of bonds rated BBB or lower and nonrated bonds, tighter supply and declining relative valuations meant fewer opportunities to find additional lower-rated issues that we believed represented value for shareholders. One of the few lower quality areas where we did find opportunities to add value was the tobacco sector, and we purchased selected tobacco issues to maintain our portfolios' overall exposure to this sector. HOW DID THE FUNDS PERFORM? Individual results for these Funds, as well as relevant index and peer group information, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE* For periods ended 4/30/06 6-MONTH 1-YEAR 5-YEAR 10-YEAR - -------------------------------------------------------------------------------- NPP 1.58% 2.52% 7.06% 6.67% - -------------------------------------------------------------------------------- NMA 1.74% 3.00% 7.56% 6.94% - -------------------------------------------------------------------------------- NMO 1.99% 3.01% 6.74% 6.20% - -------------------------------------------------------------------------------- NAD 1.94% 3.55% 8.24% NA - -------------------------------------------------------------------------------- NXZ 2.66% 4.87% 8.88% NA - -------------------------------------------------------------------------------- NZF 2.44% 4.11% NA NA - -------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index2 1.56% 2.16% 5.40% 5.90% - -------------------------------------------------------------------------------- Lipper General Leveraged Municipal Debt Funds Average3 2.60% 3.86% 7.34% 6.68% - -------------------------------------------------------------------------------- * Six-month returns are cumulative; returns for one year, five years, and ten years are annualized. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. 2 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged national index comprising a broad range of investment-grade municipal bonds. Results for the Lehman index do not reflect any expenses. 3 The Lipper General Leveraged Municipal Debt Funds category average is calculated using the returns of all closed-end exchange-traded funds in this category for each period as follows: 6 months, 56; 1 year, 56; 5 years, 45; and 10 years, 39. Fund and Lipper returns assume reinvestment of dividends. 5 For the six months ended April 30, 2006, the cumulative returns on net asset value (NAV) for all six of the Funds in this report exceeded or performed in line with the return on their Lehman Brothers municipal benchmark. NXZ also slightly outperformed the average return for the Funds' Lipper peer group for this period, NZF slightly underperformed the peer group, while NPP, NMA, NMO, and NAD underperformed this average. One of the factors that, on balance, benefited the six-month performance of these Funds relative to that of the unleveraged Lehman Brothers Municipal Bond Index was the Funds' use of financial leverage. While leveraging can add volatility to a Fund's NAV and share price, this strategy can also provide opportunities for additional income and total return for common shareholders. The benefits of leveraging are tied in part to the short-term rates leveraged Funds pay their MuniPreferred(R) shareholders. During periods of low short-term rates, leveraged Funds generally pay lower dividends to their MuniPreferred shareholders, which can leave more earnings to support common share dividends. Conversely, when short-term interest rates rise, as they did during this reporting period, the Funds' borrowing costs also rise, which can impact the Funds' income streams and total returns. However, as long as short-term yields are lower than those of the long-term bonds in the Funds' portfolios, the income received by the common shareholders of leveraged Funds will be higher than it would be if the Funds were unleveraged. Despite the impact of rising interest rates on bond valuations, the extra income, or yield advantage, resulting from leveraging during this period remained strong enough to help the Funds' total returns outperform or perform in line with the return on the Lehman index for this six months. Over the long term, we believe the use of financial leverage will continue to work to the benefit of the Funds, as demonstrated by the five-year and ten-year return performances--both absolute and relative--of the Funds in this report. During this reporting period, positive contributors to the Funds' returns included yield curve and duration positioning, exposure to lower-rated credits, and pre-refunding activity. As the yield curve continued to flatten over the course of this period, yield curve and duration positioning played important roles in the Funds' performances. On the whole, shorter maturity bonds were the most impacted by recent changes in the yield curve. As a result, these bonds generally underperformed both intermediate and long bonds, with credits having the longest durations posting the best returns for this period. Yield curve positioning or, more specifically, greater exposure to those parts of the yield curve that performed well helped the performances of these Funds during this period. As previously mentioned, we continued to work to more closely align the yield curve positioning of all of these Funds. With bonds rated BBB or lower and nonrated bonds generally outperforming other credit quality sectors during this period, all of these Funds benefited from their allocations of lower-quality credits. The performance of this sector was largely the result of investor 6 demand for the higher yields typically associated with lower-quality bonds, which drove up their value and kept credit spreads narrow. As of April 30, 2006, allocations of bonds rated BBB or lower and nonrated bonds accounted for 11% of NMO's portfolio, 13% of NPP, 13% of NZF, 16% of NAD, 19% of NMA, and 21% of NXZ. As Dividend Advantage Funds, NAD, NXZ, and NZF can also invest a higher portion of their portfolios in bonds rated BB or lower, and NXZ's allocation of 8% to this category gave a boost to its six-month performance. Among the lower-rated holdings making contributions to the Funds' cumulative returns for this period were health care bonds (including hospitals) and tobacco credits backed by the 1998 master tobacco settlement agreement. As mentioned earlier, we continued to purchase uninsured tobacco bonds during this period. We also continued to see a number of advance refundings4 during this period, which benefited the Funds through price appreciation and enhanced credit quality. However, as the yield curve flattened, more lower coupon bonds were being pre-refunded, which meant that, in general, the positive impact from refinancings was less than in the previous reporting period. While advance refundings generally enhanced total return performance for this six-month period, the rising interest rate environment--especially at the short end of the yield curve--meant that the Funds' holdings of older, previously pre-refunded bonds tended to underperform the general municipal market, due primarily to the shorter effective maturities of these bonds. This was especially true in the four older Funds--NPP, NMA, NMO, and NAD--which had significantly larger allocations of pre-refunded bonds than the more recently established NXZ and NZF. HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF APRIL 30, 2006? We continued to believe that maintaining strong credit quality was an important requirement. As of April 30, 2006, all six of these Funds continued to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 68% in NXZ to 79% in NMA to 82% in NAD, 83% in NPP, 84% in NMO, and 85% in NZF. As of April 30, 2006, potential call exposure for the period May 2006 through the end of 2007 ranged from 7% in NXZ, 8% in NMO, and 10% in NZF to 17% in NAD and NPP and 18% in NMA. We continued to watch the market for opportunities to reinvest proceeds from bonds with shorter call dates into bonds with maturities of at least 15 years. The number of actual bond calls in all of these Funds depends largely on future market interest rates. 4 Advance refundings, also known as pre-refundings or refinancings, occur when an issuer sells new bonds and uses the proceeds to fund principal and interest payments of older existing bonds. This process often results in lower borrowing costs for bond issuers. 7 Dividend and Share Price INFORMATION As previously noted, all of the Funds in this report use leverage to potentially enhance opportunities for additional income for common shareholders. During periods of rising short-term interest rates, as was the case during this reporting period, the Funds' borrowing costs also rise, reducing the extent of the benefits of leveraging. This resulted in one monthly dividend reduction in NPP, NMA, NMO, and NXZ and two in NAD over the six-month period ended April 30, 2006. The dividend of NZF remained stable throughout this reporting period. Due to capital gains generated by normal portfolio activity, common shareholders of the following Funds received capital gains and net ordinary income distributions at the end of December 2005, as follows: LONG-TERM CAPITAL GAINS ORDINARY INCOME (PER SHARE) (PER SHARE) - -------------------------------------------------------------------------------- NPP $0.0174 $0.0001 - -------------------------------------------------------------------------------- NMA $0.0116 $0.0030 - -------------------------------------------------------------------------------- NMO -- $0.0036 - -------------------------------------------------------------------------------- All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of April 30, 2006, all of the Funds in this report had a positive UNII balance for financial statement purposes and a positive UNII balance, based upon our best estimate, for tax purposes. At the end of the reporting period, the Funds' share prices were trading at premiums or discounts to their NAVs as shown in the accompanying chart: 4/30/06 6-MONTH PREMIUM/DISCOUNT AVERAGE DISCOUNT - -------------------------------------------------------------------------------- NPP -5.16% -5.21% - -------------------------------------------------------------------------------- NMA -2.07% -1.71% - -------------------------------------------------------------------------------- NMO -6.13% -5.79% - -------------------------------------------------------------------------------- NAD -4.76% -3.98% - -------------------------------------------------------------------------------- NXZ +3.12% -2.64% - -------------------------------------------------------------------------------- NZF -0.85% -2.36% - -------------------------------------------------------------------------------- 8 Nuveen Performance Plus Municipal Fund, Inc. NPP PERFORMANCE OVERVIEW As of April 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 74% AA 9% A 4% BBB 9% BB or Lower 2% N/R 2% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE(2) May 0.0780 Jun 0.0780 Jul 0.0780 Aug 0.0780 Sep 0.0745 Oct 0.0745 Nov 0.0745 Dec 0.0745 Jan 0.0745 Feb 0.0745 Mar 0.0705 Apr 0.0705 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/01/05 14.31 14.33 14.4 14.45 14.39 14.45 14.47 14.43 14.37 14.37 14.41 14.43 14.49 14.5 14.45 14.51 14.51 14.49 14.51 14.59 14.65 14.64 14.7 14.76 14.76 14.8 14.8 14.75 14.75 14.61 14.62 14.69 14.69 14.7 14.68 14.77 14.78 14.76 14.79 14.81 14.9 14.94 14.98 14.91 14.91 14.98 15.07 15.17 15.2 15.26 15.18 15.13 15.19 14.98 15.1 15.1 15.01 15.13 15.1 15.23 15.24 15.26 15.2 15.2 15.23 15.29 15.2 15.24 15.11 15.09 15.11 15.19 15.08 15.16 15.17 15.13 15.09 15.03 15.05 15.06 15.09 15.09 15.13 15.14 15.21 15.28 15.33 15.37 15.41 15.46 15.38 15.39 15.44 15.39 15.29 15.2 15 15.05 15.08 15.14 15.16 14.95 14.95 14.78 14.79 14.93 14.97 15.03 15.05 15.08 15.08 15.05 15.04 15.02 15.04 14.74 14.64 14.54 14.46 14.37 14.43 14.42 14.53 14.58 14.58 14.48 14.46 14.45 14.43 14.5 14.48 14.44 14.45 14.44 14.48 14.33 14.09 14.07 13.85 13.93 14.01 14.05 14.09 14.08 14.06 14.01 14.03 14.18 14.13 14.15 14.18 14.2 14.2 14.21 14.23 14.29 14.36 14.45 14.26 14.2 14.24 14.19 14.18 14.14 14.13 14.21 14.3 14.38 14.42 14.49 14.7 14.7 14.79 14.9 14.96 14.91 15 15.12 15.11 15.11 15.13 15.08 15.04 15.06 15.03 15.05 14.98 14.99 14.97 15.11 15.15 15.22 15.14 15.13 15.15 15.08 15.12 15.04 15.06 15.02 14.91 14.93 14.94 15.01 15.11 15.16 15.25 15.21 15.22 15.23 15.24 15.22 15.23 15.1 15 14.96 14.96 15.11 15.04 15.05 15.08 15.02 15.18 15.1 15.21 15.35 15.45 15.38 15.34 15.21 15.14 15.21 15.07 15.08 15.13 15.1 14.98 14.93 14.87 14.82 14.62 14.65 14.64 14.54 14.53 14.5 14.44 14.35 14.4 14.36 14.43 14.45 14.51 4/30/06 14.51 FUND SNAPSHOT - ------------------------------------ Common Share Price $14.51 - ------------------------------------ Common Share Net Asset Value $15.30 - ------------------------------------ Premium/(Discount) to NAV -5.16% - ------------------------------------ Market Yield 5.83% - ------------------------------------ Taxable-Equivalent Yield1 8.10% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $916,920 - ------------------------------------ Average Effective Maturity on Securities (Years) 14.95 - ------------------------------------ Leverage-Adjusted Duration 8.28 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 6/22/89) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 3.69% 1.58% - ------------------------------------ 1-Year 8.27% 2.52% - ------------------------------------ 5-Year 7.39% 7.06% - ------------------------------------ 10-Year 6.40% 6.67% - ------------------------------------ STATES (as a % of total investments) - ------------------------------------ Illinois 14.2% - ------------------------------------ California 9.2% - ------------------------------------ New York 8.6% - ------------------------------------ New Jersey 4.9% - ------------------------------------ Louisiana 4.7% - ------------------------------------ Michigan 4.6% - ------------------------------------ Indiana 4.5% - ------------------------------------ Florida 3.9% - ------------------------------------ Colorado 3.7% - ------------------------------------ Texas 3.6% - ------------------------------------ Utah 2.9% - ------------------------------------ Massachusetts 2.8% - ------------------------------------ South Carolina 2.8% - ------------------------------------ Washington 2.8% - ------------------------------------ Ohio 2.6% - ------------------------------------ Pennsylvania 2.3% - ------------------------------------ Georgia 2.1% - ------------------------------------ Minnesota 2.1% - ------------------------------------ Nevada 1.6% - ------------------------------------ Wisconsin 1.5% - ------------------------------------ Other 14.6% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ U.S. Guaranteed 26.6% - ------------------------------------ Tax Obligation/Limited 14.2% - ------------------------------------ Tax Obligation/General 14.2% - ------------------------------------ Utilites 10.1% - ------------------------------------ Transportation 9.4% - ------------------------------------ Health Care 8.0% - ------------------------------------ Consumer Staples 5.5% - ------------------------------------ Other 12.0% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders capital gains and net ordinary income distributions in December 2005 of $0.0175 per share. 9 Nuveen Municipal Advantage Fund, Inc. NMA PERFORMANCE OVERVIEW As of April 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 69% AA 10% A 2% BBB 16% BB or Lower 3% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE(2) May 0.083 Jun 0.083 Jul 0.083 Aug 0.083 Sep 0.0795 Oct 0.0795 Nov 0.0795 Dec 0.0795 Jan 0.0795 Feb 0.0795 Mar 0.0755 Apr 0.0755 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/01/05 15.17 15.23 15.28 15.33 15.28 15.26 15.39 15.28 15.26 15.32 15.24 15.17 15.28 15.33 15.29 15.31 15.25 15.22 15.21 15.31 15.32 15.38 15.45 15.46 15.5 15.55 15.49 15.5 15.41 15.34 15.33 15.31 15.4 15.37 15.39 15.46 15.48 15.57 15.59 15.69 15.68 15.67 15.67 15.7 15.69 15.78 15.75 15.83 15.85 15.91 15.8 15.77 15.71 15.56 15.63 15.66 15.61 15.6 15.66 15.65 15.68 15.81 15.72 15.72 15.78 15.89 15.77 15.72 15.65 15.65 15.57 15.63 15.58 15.66 15.68 15.77 15.7 15.78 15.77 15.75 15.8 15.82 15.77 15.8 15.82 15.81 15.84 15.88 15.93 15.97 15.95 15.94 16.01 16.06 16.01 15.89 15.71 15.66 15.64 15.7 15.76 15.68 15.6 15.51 15.58 15.66 15.75 15.84 15.84 15.84 15.81 15.72 15.76 15.85 15.75 15.55 15.44 15.38 15.39 15.34 15.3 15.24 15.19 15.2 15.19 15.05 15.13 15.17 15.19 15.27 15.2 15.24 15.2 15.21 15.25 15.22 15.19 15.23 15.09 15.08 15.08 15.12 15.12 15.01 14.99 15 15.03 15.09 15.13 15.05 15.1 15.14 15.12 15.22 15.21 15.27 15.45 15.38 15.14 15.19 15.07 15.06 14.98 15.02 15.03 15.01 15.18 15.2 15.18 15.35 15.38 15.38 15.42 15.45 15.7 15.65 15.7 15.77 15.81 15.72 15.43 15.64 15.71 15.89 15.92 15.85 15.91 15.95 15.94 15.98 16.05 16.02 16.01 16 15.66 15.63 15.68 15.69 15.68 15.79 15.6 15.63 15.61 15.77 15.77 15.8 15.75 15.95 15.82 15.86 15.92 15.93 15.94 15.7 15.45 15.38 15.46 15.55 15.58 15.49 15.46 15.43 15.57 15.52 15.5 15.5 15.47 15.49 15.46 15.47 15.55 15.49 15.45 15.46 15.51 15.53 15.46 15.47 15.35 15.25 15.13 15.17 15.29 15.15 15.22 15.23 15.14 15.15 15.17 15.12 15.17 15.15 15.17 4/30/06 15.17 FUND SNAPSHOT - ------------------------------------ Common Share Price $15.17 - ------------------------------------ Common Share Net Asset Value $15.49 - ------------------------------------ Premium/(Discount) to NAV -2.07% - ------------------------------------ Market Yield 5.97% - ------------------------------------ Taxable-Equivalent Yield1 8.29% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $667,274 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.36 - ------------------------------------ Leverage-Adjusted Duration 7.62 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 12/19/89) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 3.02% 1.74% - ------------------------------------ 1-Year 6.21% 3.00% - ------------------------------------ 5-Year 8.61% 7.56% - ------------------------------------ 10-Year 7.05% 6.94% - ------------------------------------ STATES (as a % of total investments) - ------------------------------------ Illinois 11.4% - ------------------------------------ Texas 11.3% - ------------------------------------ New York 10.9% - ------------------------------------ Washington 9.5% - ------------------------------------ California 7.5% - ------------------------------------ Wisconsin 5.1% - ------------------------------------ Louisiana 5.0% - ------------------------------------ Tennessee 3.5% - ------------------------------------ Ohio 3.0% - ------------------------------------ Colorado 2.9% - ------------------------------------ South Carolina 2.7% - ------------------------------------ Nevada 2.4% - ------------------------------------ Indiana 2.4% - ------------------------------------ Alabama 2.1% - ------------------------------------ New Jersey 2.1% - ------------------------------------ North Carolina 1.9% - ------------------------------------ Oklahoma 1.5% - ------------------------------------ Other 14.8% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ U.S. Guaranteed 26.6% - ------------------------------------ Utilites 15.1% - ------------------------------------ Health Care 13.5% - ------------------------------------ Transportation 10.3% - ------------------------------------ Tax Obligation/General 8.3% - ------------------------------------ Tax Obligation/Limited 7.8% - ------------------------------------ Housing/Single Family 5.6% - ------------------------------------ Consumer Staples 5.5% - ------------------------------------ Other 7.3% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders capital gains and net ordinary income distributions in December 2005 of $0.0146 per share. 10 Nuveen Municipal Market Opportunity Fund, Inc. NMO PERFORMANCE OVERVIEW As of April 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total municipal bonds) AAA/U.S. Guaranteed 76% AA 8% A 5% BBB 7% BB or Lower 3% N/R 1% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE(2) May 0.076 Jun 0.076 Jul 0.076 Aug 0.076 Sep 0.0725 Oct 0.0725 Nov 0.0725 Dec 0.0725 Jan 0.0725 Feb 0.0725 Mar 0.0685 Apr 0.0685 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/01/05 13.97 14.01 14.04 14.13 13.97 14 14.1 14.11 14.08 14.07 14.08 14.11 14.16 14.18 14.15 14.17 14.23 14.24 14.17 14.29 14.32 14.45 14.6 14.45 14.5 14.47 14.41 14.39 14.44 14.27 14.29 14.26 14.39 14.39 14.39 14.43 14.48 14.54 14.68 14.79 14.74 14.87 14.92 14.88 14.92 14.95 14.94 14.97 14.98 15.03 14.99 15.01 14.95 14.84 14.84 14.85 14.72 14.75 14.78 14.9 14.98 14.96 14.94 14.94 14.92 14.96 14.95 14.94 14.87 14.88 14.84 14.92 14.89 14.9 14.79 14.87 14.8 14.74 14.75 14.81 14.83 14.88 14.87 14.79 14.82 14.88 14.86 14.94 14.95 14.93 14.92 14.98 14.94 14.96 14.9 14.86 14.65 14.62 14.6 14.55 14.59 14.46 14.46 14.25 14.33 14.44 14.47 14.51 14.5 14.48 14.46 14.44 14.39 14.37 14.41 14.22 14.01 14.05 14 14.06 14.05 14 14.11 14.15 14.18 14.11 14.13 14.14 14.19 14.17 14.18 14.15 14.21 14.28 14.26 13.96 13.83 13.8 13.53 13.53 13.69 13.76 13.65 13.69 13.65 13.65 13.64 13.7 13.76 13.82 13.86 13.91 13.98 14.04 14.01 14.04 14.04 14.04 13.77 13.81 13.87 13.84 13.82 13.86 13.88 13.94 13.97 14.18 14.18 14.32 14.47 14.47 14.51 14.59 14.72 14.59 14.77 14.66 14.6 14.6 14.53 14.4 14.52 14.65 14.64 14.59 14.54 14.48 14.58 14.59 14.63 14.69 14.76 14.72 14.67 14.54 14.52 14.51 14.6 14.54 14.46 14.47 14.48 14.61 14.59 14.67 14.72 14.68 14.77 14.79 14.84 14.78 14.74 14.64 14.57 14.54 14.52 14.53 14.49 14.55 14.46 14.5 14.62 14.65 14.51 14.55 14.6 14.55 14.53 14.5 14.58 14.6 14.53 14.65 14.65 14.65 14.53 14.43 14.36 14.22 14.1 14.04 14.11 13.96 14.1 14.1 14.13 14.05 14.12 13.98 14.03 14.11 14.09 4/30/06 14.09 FUND SNAPSHOT - ------------------------------------ Common Share Price $14.09 - ------------------------------------ Common Share Net Asset Value $15.01 - ------------------------------------ Premium/(Discount) to NAV -6.13% - ------------------------------------ Market Yield 5.83% - ------------------------------------ Taxable-Equivalent Yield1 8.10% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $683,394 - ------------------------------------ Average Effective Maturity on Securities (Years) 14.11 - ------------------------------------ Leverage-Adjusted Duration 8.26 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/21/90) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 2.29% 1.99% - ------------------------------------ 1-Year 7.42% 3.01% - ------------------------------------ 5-Year 6.37% 6.74% - ------------------------------------ 10-Year 6.01% 6.20% - ------------------------------------ STATES (as a % of total municipal bonds) - ------------------------------------ Texas 16.6% - ------------------------------------ Washington 11.6% - ------------------------------------ New York 10.6% - ------------------------------------ Illinois 7.5% - ------------------------------------ Minnesota 5.2% - ------------------------------------ South Carolina 4.9% - ------------------------------------ California 4.5% - ------------------------------------ Nevada 3.9% - ------------------------------------ Colorado 3.5% - ------------------------------------ New Jersey 3.2% - ------------------------------------ Georgia 3.0% - ------------------------------------ Massachusetts 3.0% - ------------------------------------ North Dakota 2.8% - ------------------------------------ Pennsylvania 2.5% - ------------------------------------ Puerto Rico 1.9% - ------------------------------------ Ohio 1.7% - ------------------------------------ Other 13.6% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ U.S. Guaranteed 31.8% - ------------------------------------ Transportation 18.3% - ------------------------------------ Tax Obligation/General 15.0% - ------------------------------------ Tax Obligation/Limited 7.5% - ------------------------------------ Utilities 6.8% - ------------------------------------ Health Care 6.2% - ------------------------------------ Consumer Staples 5.0% - ------------------------------------ Other 9.4% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders a net ordinary income distribution in December 2005 of $0.0036 per share. 11 Nuveen Dividend Advantage Municipal Fund NAD PERFORMANCE OVERVIEW As of April 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 71% AA 11% A 2% BBB 8% BB or Lower 5% N/R 3% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE May 0.0825 Jun 0.0825 Jul 0.0825 Aug 0.0825 Sep 0.079 Oct 0.079 Nov 0.079 Dec 0.075 Jan 0.075 Feb 0.075 Mar 0.0715 Apr 0.0715 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/01/05 14.62 14.63 14.7 14.77 14.67 14.82 14.88 14.82 14.87 14.81 14.83 14.88 14.85 14.9 14.87 14.85 14.83 14.82 14.81 14.87 14.94 14.97 15.07 15.01 15.07 15.09 15.15 15.15 15.15 15 15 14.98 15 14.97 14.97 15.03 15.12 15.15 15.2 15.25 15.22 15.32 15.43 15.42 15.43 15.43 15.48 15.52 15.49 15.55 15.54 15.53 15.48 15.3 15.52 15.5 15.43 15.46 15.48 15.45 15.54 15.59 15.55 15.55 15.5 15.57 15.55 15.59 15.49 15.44 15.44 15.49 15.41 15.38 15.39 15.38 15.33 15.35 15.44 15.4 15.46 15.46 15.53 15.55 15.58 15.58 15.64 15.65 15.74 15.79 15.72 15.78 15.8 15.75 15.67 15.59 15.5 15.45 15.42 15.45 15.57 15.47 15.38 15.21 15.2 15.24 15.28 15.28 15.32 15.31 15.26 15.15 15.1 15.03 15.12 14.89 14.77 14.7 14.58 14.53 14.62 14.58 14.65 14.67 14.63 14.57 14.51 14.53 14.58 14.56 14.57 14.63 14.65 14.64 14.69 14.55 14.47 14.48 14.38 14.3 14.38 14.39 14.36 14.37 14.35 14.38 14.42 14.49 14.5 14.56 14.68 14.6 14.64 14.6 14.51 14.5 14.41 14.37 14.19 14.25 14.29 14.22 14.17 14.18 14.11 14.2 14.28 14.25 14.43 14.56 14.6 14.6 14.66 14.77 14.91 15.09 15.13 15.15 15.09 15.06 15.09 15.02 15.04 15.04 15.01 15.12 15.13 15.15 15.14 15.2 15.19 15.25 15.22 15.16 15.13 15.1 15.17 15.09 15.13 15.1 14.94 14.86 14.85 14.87 14.9 15 15.05 15.15 15.16 15.2 15.28 15.27 15.24 15.22 15.03 15.05 15.07 15.07 15.04 14.91 14.77 14.79 14.86 14.89 14.83 14.78 14.65 14.66 14.67 14.67 14.73 14.77 14.79 14.84 14.83 14.85 14.75 14.61 14.46 14.44 14.28 14.34 14.33 14.3 14.33 14.39 14.34 14.37 14.47 14.46 14.41 14.36 14.41 4/30/06 14.41 FUND SNAPSHOT - ------------------------------------ Common Share Price $14.41 - ------------------------------------ Common Share Net Asset Value $15.13 - ------------------------------------ Premium/(Discount) to NAV -4.76% - ------------------------------------ Market Yield 5.95% - ------------------------------------ Taxable-Equivalent Yield1 8.26% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $594,021 - ------------------------------------ Average Effective Maturity on Securities (Years) 15.30 - ------------------------------------ Leverage-Adjusted Duration 8.14 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 5/26/99) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 1.85% 1.94% - ------------------------------------ 1-Year 5.44% 3.55% - ------------------------------------ 5-Year 6.16% 8.24% - ------------------------------------ Since Inception 5.98% 7.35% - ------------------------------------ STATES (as a % of total investments) - ------------------------------------ IIllinois 24.8% - ------------------------------------ Texas 10.2% - ------------------------------------ New York 8.6% - ------------------------------------ Washington 7.6% - ------------------------------------ Florida 5.4% - ------------------------------------ Wisconsin 4.6% - ------------------------------------ New Jersey 4.4% - ------------------------------------ Pennsylvania 3.3% - ------------------------------------ Ohio 2.8% - ------------------------------------ Louisiana 2.7% - ------------------------------------ Indiana 2.6% - ------------------------------------ Colorado 2.5% - ------------------------------------ Michigan 2.4% - ------------------------------------ Rhode Island 2.2% - ------------------------------------ California 1.8% - ------------------------------------ Other 14.1% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ U.S. Guaranteed 19.3% - ------------------------------------ Tax Obligation/General 16.1% - ------------------------------------ Tax Obligation/Limited 13.8% - ------------------------------------ Health Care 13.1% - ------------------------------------ Transportation 11.9% - ------------------------------------ Utilities 7.6% - ------------------------------------ Consumer Staples 6.3% - ------------------------------------ Other 11.9% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 12 Nuveen Dividend Advantage Municipal Fund 2 NXZ PERFORMANCE OVERVIEW As of April 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total municipal bonds) AAA/U.S. Guaranteed 61% AA 7% A 11% BBB 11% BB or Lower 8% N/R 2% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE May 0.086 Jun 0.086 Jul 0.086 Aug 0.086 Sep 0.086 Oct 0.086 Nov 0.086 Dec 0.086 Jan 0.086 Feb 0.086 Mar 0.082 Apr 0.082 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/01/05 15.38 15.42 15.4 15.43 15.39 15.39 15.52 15.39 15.45 15.5 15.53 15.52 15.55 15.5 15.41 15.47 15.5 15.51 15.54 15.59 15.62 15.69 15.77 15.72 15.76 15.86 15.9 15.84 15.84 15.65 15.64 15.7 15.89 15.84 15.81 15.82 15.84 15.94 16 15.92 15.84 15.96 16.05 15.98 15.92 16 16.05 16.08 16.16 16.22 16.1 16.04 16.06 15.83 16.01 15.99 15.94 15.99 15.87 15.82 15.97 16 16 16 16.01 16.07 16.14 16.12 16.03 16.01 15.99 16.02 15.94 16 16.03 15.99 15.97 16 16.07 16.11 16.29 16.24 16.29 16.32 16.22 16.2 16.39 16.59 16.64 16.68 16.7 16.85 16.79 16.85 16.6 16.33 16.31 16.46 16.45 16.32 16.4 16.39 16.15 16.14 16.09 16.15 16.19 16.25 16.27 16.24 16.22 16.19 16.27 16.21 16.3 16.01 15.64 15.6 15.67 15.58 15.49 15.5 15.82 15.55 15.56 15.45 15.5 15.45 15.64 15.58 15.71 15.74 15.8 15.86 15.99 15.96 15.8 15.84 15.74 15.68 15.74 15.95 15.9 15.95 16.01 15.95 16 16.15 16.3 16.18 16.21 16.03 16.02 16.07 16.12 16.3 16.18 16.3 15.95 15.84 16.12 15.75 15.88 16.09 16.11 16.1 16.13 16.4 16.39 16.43 16.47 16.47 16.54 16.52 16.55 16.72 16.75 16.75 16.57 16.62 16.5 16.38 16.53 16.68 16.8 16.8 16.82 16.8 16.88 16.95 17.2 17.15 17.01 16.92 16.75 16.66 16.7 16.66 16.13 16.17 16 15.95 15.95 16.05 16.14 16.05 16.15 16.13 16.19 16.29 16.3 16.22 16.25 16.19 16.19 16.09 16.13 16.15 16.15 16.23 16.15 16.22 16.38 16.32 16.38 16.29 16.27 16.6 16.55 16.6 16.56 16.62 16.56 16.62 16.68 16.62 16.65 16.6 16.4 16.3 16.16 16.15 16.08 16.09 16.19 16.19 16.15 16.13 16.36 16.22 16.05 16.14 16.2 16.2 4/30/06 15.64 FUND SNAPSHOT - ------------------------------------ Common Share Price $16.20 - ------------------------------------ Common Share Net Asset Value $15.71 - ------------------------------------ Premium/(Discount) to NAV 3.12% - ------------------------------------ Market Yield 6.07% - ------------------------------------ Taxable-Equivalent Yield1 8.43% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $460,507 - ------------------------------------ Average Effective Maturity on Securities (Years) 21.76 - ------------------------------------ Leverage-Adjusted Duration 6.85 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 6.82% 2.66% - ------------------------------------ 1-Year 12.82% 4.87% - ------------------------------------ 5-Year 8.48% 8.88% - ------------------------------------ Since Inception 8.33% 8.53% - ------------------------------------ STATES (as a % of total municipal bonds) - ------------------------------------ Texas 16.9% - ------------------------------------ Michigan 9.7% - ------------------------------------ California 7.4% - ------------------------------------ Illinois 7.3% - ------------------------------------ New York 4.4% - ------------------------------------ Colorado 4.1% - ------------------------------------ Washington 4.1% - ------------------------------------ New Mexico 3.7% - ------------------------------------ Florida 3.4% - ------------------------------------ Missouri 3.4% - ------------------------------------ Indiana 3.3% - ------------------------------------ Louisiana 2.9% - ------------------------------------ Alabama 2.9% - ------------------------------------ Nevada 2.8% - ------------------------------------ Massachusetts 2.7% - ------------------------------------ Kansas 2.6% - ------------------------------------ Oregon 2.6% - ------------------------------------ Pennsylvania 2.5% - ------------------------------------ Other 13.3% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Health Care 17.8% - ------------------------------------ Tax Obligation/Limited 15.6% - ------------------------------------ U.S. Guaranteed 13.6% - ------------------------------------ Transportation 13.4% - ------------------------------------ Water and Sewer 8.8% - ------------------------------------ Utilities 7.0% - ------------------------------------ Tax Obligation/General 6.1% - ------------------------------------ Consumer Staples 5.5% - ------------------------------------ Other 12.2% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 13 Nuveen Dividend Advantage Municipal Fund 3 NZF PERFORMANCE OVERVIEW As of April 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 76% AA 9% A 2% BBB 6% BB or Lower 2% N/R 5% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE May 0.0805 Jun 0.0805 Jul 0.0805 Aug 0.0805 Sep 0.077 Oct 0.077 Nov 0.077 Dec 0.077 Jan 0.077 Feb 0.077 Mar 0.077 Apr 0.077 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/01/05 14.35 14.44 14.44 14.41 14.3 14.39 14.47 14.35 14.41 14.41 14.48 14.45 14.48 14.48 14.47 14.49 14.52 14.56 14.56 14.61 14.67 14.69 14.78 14.77 14.78 14.85 14.85 14.9 14.91 14.77 14.76 14.71 14.75 14.68 14.72 14.75 14.82 14.86 14.92 14.86 14.82 14.9 14.99 15 15.05 15.13 15.15 15.19 15.26 15.31 15.25 15.24 15.18 14.95 15.04 14.95 14.94 14.98 14.98 14.98 15 15.05 15.1 15.1 15.14 15.13 15.12 15.11 15.03 15 15.03 15.09 15.05 15.06 15.08 15.12 15.06 15.11 15.17 15.13 15.06 15.08 15.13 15.17 15.18 15.2 15.26 15.35 15.42 15.47 15.3 15.32 15.41 15.4 15.21 15.08 14.91 14.9 14.91 14.94 14.93 14.56 14.47 14.4 14.35 14.51 14.5 14.53 14.5 14.5 14.45 14.49 14.48 14.45 14.53 14.33 14.08 14.1 14.1 14.05 14.09 14.09 14.33 14.35 14.38 14.3 14.36 14.37 14.41 14.5 14.52 14.52 14.55 14.66 14.61 14.67 14.53 14.53 14.49 14.37 14.54 14.45 14.5 14.41 14.43 14.44 14.42 14.54 14.52 14.43 14.46 14.48 14.55 14.61 14.48 14.5 14.66 14.69 14.46 14.47 14.4 14.4 14.39 14.41 14.42 14.49 14.61 14.52 14.71 14.82 14.91 14.91 14.99 15.01 15.15 15.3 15.3 15.4 15.25 15.35 15.26 15.2 15.16 15.24 15.28 15.29 15.38 15.38 15.31 15.37 15.4 15.49 15.45 15.4 15.38 15.37 15.4 15.4 15.41 15.43 15.35 15.32 15.33 15.4 15.35 15.34 15.15 15.1 15.15 15.2 15.21 15.24 15.15 15.13 15.17 15.1 15.12 15.13 15.19 15.17 15.19 15.3 15.34 15.32 15.33 15.29 15.35 15.49 15.45 15.48 15.45 15.4 15.28 15.26 15.35 15.35 15.4 15.38 15.32 15.26 15.29 15.2 15.25 15.02 15.08 15.09 15.05 14.95 15 15.03 15 15.15 15.1 4/30/06 15.1 FUND SNAPSHOT - ------------------------------------ Common Share Price $15.10 - ------------------------------------ Common Share Net Asset Value $15.23 - ------------------------------------ Premium/(Discount) to NAV -0.85% - ------------------------------------ Market Yield 6.12% - ------------------------------------ Taxable-Equivalent Yield1 8.50% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $613,899 - ------------------------------------ Average Effective Maturity on Securities (Years) 17.47 - ------------------------------------ Leverage-Adjusted Duration 6.73 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 8.03% 2.44% - ------------------------------------ 1-Year 12.23% 4.11% - ------------------------------------ Since Inception 6.78% 7.75% - ------------------------------------ STATES (as a % of total investments) - ------------------------------------ Illinois 12.4% - ------------------------------------ Texas 12.1% - ------------------------------------ Washington 10.7% - ------------------------------------ California 7.2% - ------------------------------------ Michigan 6.1% - ------------------------------------ Nevada 5.3% - ------------------------------------ Colorado 5.1% - ------------------------------------ Iowa 4.0% - ------------------------------------ Indiana 3.9% - ------------------------------------ Wisconsin 3.0% - ------------------------------------ New York 2.9% - ------------------------------------ Louisiana 2.3% - ------------------------------------ Kentucky 2.1% - ------------------------------------ Missouri 1.7% - ------------------------------------ Oregon 1.7% - ------------------------------------ New Jersey 1.6% - ------------------------------------ Georgia 1.6% - ------------------------------------ Ohio 1.5% - ------------------------------------ Other 14.8% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Transportation 18.0% - ------------------------------------ Health Care 16.3% - ------------------------------------ U.S. Guaranteed 15.9% - ------------------------------------ Tax Obligation/General 13.0% - ------------------------------------ Utilities 7.3% - ------------------------------------ Water and Sewer 6.6% - ------------------------------------ Education and Civic Organizations 5.8% - ------------------------------------ Tax Obligation/Limited 4.9% - ------------------------------------ Other 12.2% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 14 Nuveen Performance Plus Municipal Fund, Inc. (NPP) Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.2% (0.8% OF TOTAL INVESTMENTS) Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 1997A: $ 3,640 5.625%, 2/01/22 (Pre-refunded 2/01/07) - FGIC Insured 2/07 at 101.00 AAA $ 3,727,979 3,820 5.375%, 2/01/27 (Pre-refunded 2/01/07) - FGIC Insured 2/07 at 100.00 AAA 3,868,094 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 1997A: 1,435 5.625%, 2/01/22 - FGIC Insured 2/07 at 101.00 AAA 1,468,349 1,505 5.375%, 2/01/27 - FGIC Insured 2/07 at 100.00 AAA 1,521,103 - ------------------------------------------------------------------------------------------------------------------------------------ 10,400 Total Alabama 10,585,525 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.3% (0.9% OF TOTAL INVESTMENTS) 1,000 Arizona State Transportation Board, Highway Revenue Bonds, 7/12 at 100.00 AAA 1,075,380 Series 2002B, 5.250%, 7/01/22 (Pre-refunded 7/01/12) Phoenix, Arizona, Civic Improvement Corporation, Senior Lien Airport Revenue Bonds, Series 2002B: 5,365 5.750%, 7/01/15 - FGIC Insured (Alternative Minimum Tax) 7/12 at 100.00 AAA 5,815,875 5,055 5.750%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) 7/12 at 100.00 AAA 5,485,534 - ------------------------------------------------------------------------------------------------------------------------------------ 11,420 Total Arizona 12,376,789 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.7% (0.5% OF TOTAL INVESTMENTS) 5,080 Independence County, Arkansas, Hydroelectric Power Revenue 5/13 at 100.00 A 5,215,738 Bonds, Series 2003, 5.350%, 5/01/28 - ACA Insured 1,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 BBB 981,960 Washington Regional Medical Center, Series 2005A, 5.000%, 2/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ 6,080 Total Arkansas 6,197,698 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 13.7% (9.2% OF TOTAL INVESTMENTS) 3,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 2,665,635 Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 - AMBAC Insured 11,000 Anaheim Public Finance Authority, California, Subordinate No Opt. Call AAA 5,555,660 Lease Revenue Bonds, Public Improvement Project, Series 1997C, 0.000%, 9/01/20 - FSA Insured California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 4,000 6.000%, 5/01/15 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 4,512,600 3,175 5.375%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 3,477,800 3,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 3,012,750 Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/33 2,380 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 2,432,979 Bonds, J. David Gladstone Institutes, Series 2001, 5.250%, 10/01/34 5,300 California, General Obligation Bonds, Series 2004, 2/09 at 100.00 A 5,346,746 5.100%, 2/01/34 5,000 California, General Obligation Bonds, Series 2005, 3/16 at 100.00 A 5,102,950 5.000%, 3/01/31 6,435 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call AAA 7,364,150 6.000%, 4/01/16 - AMBAC Insured 3,935 East Bay Municipal Utility District, Alameda and Contra Costa 6/06 at 100.00 AAA 3,938,935 Counties, California, Water System Subordinated Revenue Refunding Bonds, Series 1996, 4.750%, 6/01/21 (Pre-refunded 6/01/06) - FGIC Insured 2,990 East Bay Municipal Utility District, Alameda and Contra Costa 6/06 at 100.00 AAA 2,990,538 Counties, California, Water System Subordinated Revenue Refunding Bonds, Series 1996, 4.750%, 6/01/21 - FGIC Insured 10,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 11,137,600 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 8,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 8,054,880 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 15 Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 1,000 Mt. Diablo Hospital District, California, Insured Hospital 6/06 at 100.00 AAA $ 1,024,560 Revenue Bonds, Series 1993A, 5.125%, 12/01/23 - AMBAC Insured (ETM) 13,450 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 16,577,798 County, California, Revenue Refunding Bonds, Redevelopment Project 1, Series 1995, 7.200%, 8/01/17 - MBIA Insured 14,535 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 15,458,699 Residential Mortgage Revenue Refunding Bonds, Series 1991A, 7.150%, 2/01/10 (ETM) 2,325 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 3,029,987 Restructured Single Family Mortgage Revenue Bonds, Series 1986D, 8.000%, 4/01/16 (Alternative Minimum Tax) (ETM) 2,000 San Francisco Airports Commission, California, Revenue Bonds, 5/09 at 101.00 AAA 2,049,160 San Francisco International Airport, Second Series 1999, Issue 23B, 5.125%, 5/01/30 - FGIC Insured 2,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 2,087,460 Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27B, 5.125%, 5/01/26 - FGIC Insured 3,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 712,470 County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/35 - MBIA Insured 15,745 Walnut Valley Unified School District, Los Angeles County, 8/11 at 103.00 AAA 18,717,813 California, General Obligation Refunding Bonds, Series 1997A, 7.200%, 2/01/16 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 122,770 Total California 125,251,170 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.6% (3.7% OF TOTAL INVESTMENTS) 3,000 Colorado Educational and Cultural Facilities Authority, 8/14 at 100.00 AAA 3,153,090 Charter School Revenue Bonds, Peak-to-Peak Charter School, Series 2004, 5.250%, 8/15/34 - XLCA Insured 5,860 Colorado Health Facilities Authority, Revenue Refunding Bonds, 9/11 at 100.00 AA 6,066,272 Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21 7,575 Denver City and County, Colorado, Airport System Revenue 11/07 at 101.00 AAA 7,794,827 Bonds, Series 1997E, 5.250%, 11/15/23 - MBIA Insured 20,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 21,200,799 Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33 (Pre-refunded 12/01/13) - XLCA Insured 10,615 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 5,073,758 Bonds, Series 1997B, 0.000%, 9/01/21 - MBIA Insured 10,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 2,715,900 Bonds, Series 2000B, 0.000%, 9/01/32 - MBIA Insured 755 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 788,024 Obligation Bonds, Series 2004, 5.000%, 12/15/22 - FSA Insured 4,125 Municipal Subdistrict Northern Colorado Water District, 12/07 at 101.00 AAA 4,254,608 Revenue Bonds, Series 1997G, 5.250%, 12/01/15 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 61,930 Total Colorado 51,047,278 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 2.0% (1.4% OF TOTAL INVESTMENTS) 6,110 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 6,470,612 Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24 5,590 District of Columbia, General Obligation Bonds, Series 1999B, 6/09 at 101.00 AAA 5,900,860 5.500%, 6/01/13 - FSA Insured 6,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 6,248,640 Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 5.250%, 10/01/10 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 17,700 Total District of Columbia 18,620,112 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 5.8% (3.9% OF TOTAL INVESTMENTS) Broward County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Venice Homes Apartments, Series 2001A: 1,545 5.700%, 1/01/32 - FSA Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA 1,565,487 1,805 5.800%, 1/01/36 - FSA Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA 1,835,523 2,505 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 2,583,356 Revenue Bonds, Series 2000-11, 5.850%, 1/01/22 - FSA Insured (Alternative Minimum Tax) 16 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 10,050 Florida State Board of Education, Full Faith and Credit Public 6/10 at 101.00 AAA $ 10,813,298 Education Capital Outlay Refunding Bonds, Series 1999D, 5.750%, 6/01/22 7,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 AAA 7,379,960 Bonds, Tampa International Airport, Series 2003A, 5.250%, 10/01/17 - MBIA Insured (Alternative Minimum Tax) 10,000 JEA, Florida, Electric System Revenue Bonds, Series 2006-3A, 4/15 at 100.00 AAA 10,252,200 5.000%, 10/01/41 - FSA Insured 10,750 Martin County Industrial Development Authority, Florida, 6/06 at 101.00 BB+ 10,906,090 Industrial Development Revenue Bonds, Indiantown Cogeneration LP, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax) 2,570 Miami-Dade County Housing Finance Authority, Florida, 6/11 at 100.00 AAA 2,653,833 Multifamily Mortgage Revenue Bonds, Country Club Villas II Project, Series 2001-1A, 5.850%, 1/01/37 - FSA Insured (Alternative Minimum Tax) 3,500 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/15 at 100.00 AAA 3,562,545 Miami International Airport, Series 2005A, 5.000%, 10/01/37 - XLCA Insured (Alternative Minimum Tax) 1,700 Miami-Dade County, Florida, Beacon Tradeport Community 5/12 at 102.00 AA 1,824,151 Development District, Special Assessment Bonds, Commercial Project, Series 2002A, 5.625%, 5/01/32 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ 51,425 Total Florida 53,376,443 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 3.2% (2.1% OF TOTAL INVESTMENTS) 4,920 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA 5,275,027 Series 2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) - FGIC Insured 5,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 5,552,150 Series 1999A, 5.500%, 11/01/22 - FGIC Insured 2,000 George L. Smith II World Congress Center Authority, Atlanta, 7/10 at 101.00 AAA 2,104,540 Georgia, Revenue Refunding Bonds, Domed Stadium Project, Series 2000, 5.500%, 7/01/20 - MBIA Insured (Alternative Minimum Tax) 15,000 Private Colleges and Universities Authority, Georgia, Revenue 11/09 at 101.00 AA (4) 15,993,150 Bonds, Emory University, Series 1999A, 5.500%, 11/01/25 (Pre-refunded 11/01/09) - ------------------------------------------------------------------------------------------------------------------------------------ 26,920 Total Georgia 28,924,867 - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS) 775 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 A1 797,188 Bonds, Series 2000D, 6.200%, 7/01/14 (Alternative Minimum Tax) 490 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aa2 507,713 Bonds, Series 2000G-2, 5.950%, 7/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,265 Total Idaho 1,304,901 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 21.2% (14.2% OF TOTAL INVESTMENTS) 10,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 5,262,200 Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1, 0.000%, 12/01/19 - FGIC Insured 10,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 4,998,000 Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/20 - FGIC Insured 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 15,946,347 32,670 0.000%, 1/01/22 - FGIC Insured No Opt. Call AAA 15,414,359 3,000 Chicago, Illinois, General Obligation Bonds, Library Projects, 1/08 at 102.00 AAA 3,157,020 Series 1997, 5.750%, 1/01/17 (Pre-refunded 1/01/08) - FGIC Insured 9,145 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1996A, 1/07 at 101.00 AAA 9,338,142 5.500%, 1/01/29 - MBIA Insured 1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,714,467 O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 - FGIC Insured DuPage County Forest Preserve District, Illinois, General Obligation Bonds, Series 2000: 8,000 0.000%, 11/01/18 No Opt. Call AAA 4,469,920 15,285 0.000%, 11/01/19 No Opt. Call AAA 8,085,612 4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 4,090,240 Revenue Refunding Bonds, Sinai Health System, Series 2003, 5.150%, 2/15/37 17 Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 1,090 Illinois Health Facilities Authority, Revenue Bonds, 7/12 at 100.00 A- $ 1,145,579 Lake Forest Hospital, Series 2002A, 5.750%, 7/01/29 3,000 Illinois Health Facilities Authority, Revenue Bonds, 7/13 at 100.00 A- 3,220,800 Lake Forest Hospital, Series 2003, 6.000%, 7/01/33 4,580 Illinois Health Facilities Authority, Revenue Bonds, Midwest 8/10 at 102.00 Aaa 4,929,637 Care Center IX Inc., Series 2000, 6.250%, 8/20/35 2,955 Illinois Health Facilities Authority, Revenue Bonds, Silver 8/09 at 101.00 A 3,011,204 Cross Hospital and Medical Centers, Series 1999, 5.250%, 8/15/15 (Mandatory put 4/01/08) 4,415 Illinois Health Facilities Authority, Revenue Refunding Bonds, 7/06 at 100.00 BBB- 4,417,561 Proctor Community Hospital, Series 1991, 7.375%, 1/01/23 7,250 Kane, Kendall, LaSalle, and Will Counties, Illinois, Community 12/13 at 57.71 AAA 2,826,702 College District 516, General Obligation Bonds, Series 2005E, 0.000%, 12/15/24 - FGIC Insured 5,000 Kane, McHenry, Cook and DeKalb Counties Community Unit 12/11 at 100.00 AAA 5,426,500 School District 300, Carpentersville, Illinois, General Obligation Bonds, Series 2000, 5.500%, 12/01/19 (Pre-refunded 12/01/11) - MBIA Insured 3,700 Libertyville, Illinois, Affordable Housing Revenue Bonds, 11/09 at 100.00 A3 3,804,303 Liberty Towers Project, Series 1999A, 7.000%, 11/01/29 (Alternative Minimum Tax) 6,000 McHenry County Conservation District, Illinois, General 2/11 at 100.00 AAA 6,483,540 Obligation Bonds, Series 2001A, 5.625%, 2/01/21 (Pre-refunded 2/01/11) - FGIC Insured 10,650 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 13,827,534 Bonds, McCormick Place Hospitality Facility, Series 1996A, 7.000%, 7/01/26 (ETM) Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1996A: 9,400 0.000%, 12/15/18 - MBIA Insured No Opt. Call AAA 5,214,650 16,570 0.000%, 12/15/20 - MBIA Insured No Opt. Call AAA 8,254,511 23,550 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 10,613,985 13,000 0.000%, 12/15/24 - MBIA Insured No Opt. Call AAA 5,304,260 5,100 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 5,752,545 Refunding Bonds, McCormick Place Expansion Project, Series 1998A, 5.500%, 12/15/23 - FGIC Insured 5,180 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 5,925,143 Refunding Bonds, McCormick Place Expansion Project, Series 1998A, 5.500%, 12/15/23 - FGIC Insured (ETM) 17,865 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 20,611,743 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1999, 5.750%, 6/01/23 - FSA Insured 6,090 Sherman, Illinois, GNMA Mortgage Revenue Refunding Bonds, 10/09 at 102.00 AAA 6,548,638 Villa Vianney, Series 1999A, 6.450%, 10/01/29 10,000 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aaa 4,387,800 Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/23 (WI/DD, Settling 5/08/06) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 281,330 Total Illinois 194,182,942 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 6.8% (4.5% OF TOTAL INVESTMENTS) 2,465 Danville Multi-School Building Corporation, Indiana, First 7/11 at 100.00 AAA 2,599,663 Mortgage Refunding Bonds, Series 2001, 5.250%, 7/15/18 - AMBAC Insured 14,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 15,121,960 Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30 (Pre-refunded 8/15/10) - MBIA Insured 2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,894,925 Refunding Bonds, Columbus Regional Hospital, Series 1993, 7.000%, 8/15/15 - FSA Insured Indiana Health Facility Financing Authority, Revenue Bonds, Ancilla Systems Inc. Obligated Group, Series 1997: 15,380 5.250%, 7/01/17 - MBIA Insured (ETM) 7/07 at 101.00 AAA 15,782,956 4,320 5.250%, 7/01/22 - MBIA Insured (ETM) 7/07 at 101.00 AAA 4,429,901 2,250 5.250%, 7/01/22 - MBIA Insured (ETM) 7/07 at 101.00 AAA 2,307,240 2,000 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,048,080 Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 - AMBAC Insured 18 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA (continued) $ 6,715 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 AA $ 7,069,753 Bonds, Series 2000, 5.375%, 12/01/25 1,285 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 AA (4) 1,371,840 Bonds, Series 2000, 5.375%, 12/01/25 (Pre-refunded 12/01/10) 3,105 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 AAA 3,279,097 5.250%, 8/01/20 - FGIC Insured 1,000 Marion County Convention and Recreational Facilities Authority, 6/11 at 100.00 AAA 1,035,230 Indiana, Excise Taxes Lease Rental Revenue Refunding Senior Bonds, Series 2001A, 5.000%, 6/01/21 - MBIA Insured 2,395 Shelbyville Central Renovation School Building Corporation, 7/15 at 100.00 AAA 2,281,669 Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/26 - MBIA Insured 1,800 Sunman Dearborn High School Building Corporation, Indiana, 1/15 at 100.00 AAA 1,854,342 First Mortgage Bonds, Series 2005, 5.000%, 7/15/25 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 59,215 Total Indiana 62,076,656 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.6% (0.4% OF TOTAL INVESTMENTS) 5,000 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 5,431,200 Asset-Backed Revenue Bonds, Series 2001B, 5.600%, 6/01/35 (Pre-refunded 6/01/11) - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.3% (0.9% OF TOTAL INVESTMENTS) 3,790 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AA+ 3,937,924 Series 2004A, 5.000%, 3/01/23 5,790 Sedgwick County Unified School District 259, Wichita, Kansas, 9/10 at 100.00 AA 5,317,652 General Obligation Bonds, Series 2000, 3.500%, 9/01/17 3,200 Wyandotte County Unified School District 500, Kansas, 9/11 at 100.00 AAA 3,022,240 General Obligation Bonds, Series 2001, 4.000%, 9/01/21 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 12,780 Total Kansas 12,277,816 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.4% (0.2% OF TOTAL INVESTMENTS) 3,700 Louisville and Jefferson County Metropolitan Sewer District, 5/07 at 101.00 AAA 3,833,311 Kentucky, Sewer and Drainage System Revenue Bonds, Series 1997A, 6.250%, 5/15/26 (Pre-refunded 5/15/07) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 6.9% (4.7% OF TOTAL INVESTMENTS) 1,090 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/07 at 102.00 Aaa 1,116,836 GNMA/FNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Refunding Bonds, Series 1997B-1, 5.750%, 10/01/26 4,000 Lafayette City and Parish, Louisiana, Utilities Revenue 11/14 at 100.00 AAA 4,246,400 Bonds, Series 2004, 5.250%, 11/01/25 - MBIA Insured 4,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 4,850,462 Rouge General Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured 35,700 Louisiana Stadium and Exposition District, Hotel Occupancy 7/06 at 102.00 AAA 36,532,162 Tax Bonds, Series 1996, 5.750%, 7/01/26 (Pre-refunded 7/01/06) - FGIC Insured Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, Series 2001B: 10,000 5.500%, 5/15/30 5/11 at 101.00 BBB 10,276,300 6,380 5.875%, 5/15/39 5/11 at 101.00 BBB 6,690,068 - ------------------------------------------------------------------------------------------------------------------------------------ 61,820 Total Louisiana 63,712,228 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.6% (0.4% OF TOTAL INVESTMENTS) 5,680 Portland, Maine, Airport Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 5,808,425 5.000%, 7/01/32 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.7% (1.2% OF TOTAL INVESTMENTS) 7,720 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 AAA 7,986,263 Bonds, Baltimore-Washington International Airport Passenger Facility, Series 2002B, 5.125%, 3/01/20 - AMBAC Insured (Alternative Minimum Tax) 7,090 Takoma Park, Maryland, Hospital Facilities Revenue Refunding No Opt. Call AAA 7,836,293 and Improvement Bonds, Washington Adventist Hospital, Series 1995, 6.500%, 9/01/12 - FSA Insured (ETM) - ------------------------------------------------------------------------------------------------------------------------------------ 14,810 Total Maryland 15,822,556 - ------------------------------------------------------------------------------------------------------------------------------------ 19 Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 4.2% (2.8% OF TOTAL INVESTMENTS) Massachusetts Development Finance Authority, Revenue Bonds, 100 Cambridge Street Redevelopment, M/SRBC Project, Series 2002A: $ 4,000 5.125%, 8/01/28 - MBIA Insured 2/12 at 100.00 AAA $ 4,152,640 5,625 5.125%, 2/01/34 - MBIA Insured 2/12 at 100.00 AAA 5,769,338 1,190 Massachusetts Educational Finance Authority, Student Loan 12/09 at 101.00 AAA 1,210,420 Revenue Refunding Bonds, Series 2000G, 5.700%, 12/01/11 - MBIA Insured (Alternative Minimum Tax) 4,365 Massachusetts Health and Educational Facilities Authority, 10/15 at 100.00 AAA 4,524,192 Revenue Bonds, Berkshire Health System, Series 2005F, 5.000%, 10/01/19 - AGC Insured 1,530 Massachusetts Health and Educational Facilities Authority, 7/08 at 101.00 Aaa 1,531,913 Revenue Bonds, Southcoast Health System Obligated Group, Series 1998A, 4.750%, 7/01/27 - MBIA Insured 5,745 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 5,924,244 Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) 890 Massachusetts, General Obligation Bonds, Consolidated Loan, 11/12 at 100.00 AA (4) 954,881 Series 2002C, 5.250%, 11/01/30 (Pre-refunded 11/01/12) Massachusetts, General Obligation Bonds, Consolidated Loan, Series 2002E: 1,255 5.250%, 1/01/22 (Pre-refunded 1/01/13) - FGIC Insured 1/13 at 100.00 AAA 1,343,377 3,745 5.250%, 1/01/22 (Pre-refunded 1/01/13) - FGIC Insured 1/13 at 100.00 AAA 4,008,723 8,500 Route 3 North Transportation Improvements Association, 6/10 at 100.00 AAA 9,026,575 Massachusetts, Lease Revenue Bonds, Series 2000, 5.375%, 6/15/33 (Pre-refunded 6/15/10) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 36,845 Total Massachusetts 38,446,303 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 6.8% (4.6% OF TOTAL INVESTMENTS) 17,000 Birmingham City School District, Oakland County, Michigan, 11/07 at 100.00 AAA 17,061,200 School Building and Site Bonds, Series 1998, 4.750%, 11/01/24 - FSA Insured 5,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 5,142,350 Revenue Bonds, Series 2005A, 5.000%, 7/01/35 - MBIA Insured 3,000 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/07 at 101.00 AAA 3,074,580 Bonds, Series 1997A, 5.000%, 7/01/21 (Pre-refunded 7/01/07) - MBIA Insured 4,030 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 4,146,830 Mortgage Hospital Revenue Bonds, Portage Health System Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured 1,500 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 AA- 1,543,485 Program, Series 2001I, 5.000%, 10/15/24 5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 5,145,750 Facilities Program, Series 2003II, 5.000%, 10/15/29 - MBIA Insured 7,115 Michigan State Hospital Finance Authority, Hospital Revenue 3/13 at 100.00 A1 7,544,604 Refunding Bonds, Henry Ford Health System, Series 2003A, 5.500%, 3/01/16 5,000 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call AAA 5,336,200 Refunding Bonds, Sisters of Mercy Health Corporation, Series 1993P, 5.375%, 8/15/14 - MBIA Insured (ETM) 3,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 3,144,120 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured (Alternative Minimum Tax) 10,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 10,363,800 Metropolitan Wayne County Airport, Series 1998A, 5.375%, 12/01/16 - MBIA Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 60,645 Total Michigan 62,502,919 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 3.1% (2.1% OF TOTAL INVESTMENTS) 3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,133,560 Minnesota, Subordinate Airport Revenue Bonds, Series 2001C, 5.250%, 1/01/26 - FGIC Insured 20,770 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 103.00 AAA 25,371,177 Sales Tax Revenue Refunding Bonds, Civic Center Project, Series 1996, 7.100%, 11/01/23 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 23,770 Total Minnesota 28,504,737 - ------------------------------------------------------------------------------------------------------------------------------------ 20 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.3% (0.9% OF TOTAL INVESTMENTS) $ 9,750 Mississippi Business Finance Corporation, Pollution Control 10/06 at 100.00 BBB- $ 9,830,048 Revenue Refunding Bonds, System Energy Resources Inc. Project, Series 1998, 5.875%, 4/01/22 2,475 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 2,472,773 Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%, 9/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ 12,225 Total Mississippi 12,302,821 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.6% (1.1% OF TOTAL INVESTMENTS) 6,350 Kansas City, Missouri, Airport Revenue Bonds, General 9/12 at 100.00 AAA 6,714,554 Improvement Projects, Series 2003B, 5.250%, 9/01/17 - FGIC Insured 1,845 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 1,940,922 Bonds, BJC Health System, Series 2003, 5.250%, 5/15/18 3,815 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 4,097,501 Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 2,000 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,059,280 Agency, Mass Transit Sales Tax Appropriation Bonds, Metrolink Cross County Extension Project, Series 2002B, 5.000%, 10/01/32 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 14,010 Total Missouri 14,812,257 - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.7% (0.5% OF TOTAL INVESTMENTS) 670 Montana Board of Housing, Single Family Mortgage Bonds, 6/07 at 101.50 AA+ 671,367 Series 1997A-1, 6.150%, 6/01/30 (Alternative Minimum Tax) 740 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100.00 AA+ 741,939 Series 2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax) 4,795 Montana Higher Education Student Assistance Corporation, 12/08 at 101.00 A2 4,876,323 Student Loan Revenue Bonds, Subordinate Series 1998B, 5.500%, 12/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 6,205 Total Montana 6,289,629 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.2% (0.1% OF TOTAL INVESTMENTS) 1,430 Nebraska Investment Finance Authority, Single Family Housing 9/10 at 100.00 AAA 1,438,351 Revenue Bonds, Series 2000E, 5.850%, 9/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 2.4% (1.6% OF TOTAL INVESTMENTS) 10,900 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 11,852,769 Series 2002C, 5.500%, 6/15/19 (Pre-refunded 6/15/12) - MBIA Insured 5,000 Clark County, Nevada, General Obligation Bank Bonds, Southern 6/11 at 100.00 AAA 5,274,650 Nevada Water Authority Loan, Series 2001, 5.300%, 6/01/19 - FGIC Insured 4,980 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 5,161,571 Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 20,880 Total Nevada 22,288,990 - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 1.6% (1.1% OF TOTAL INVESTMENTS) 3,265 New Hampshire Health and Education Facilities Authority, 1/15 at 100.00 A 3,277,309 Revenue Bonds, Southern New Hampshire University, Series 2005, 5.000%, 1/01/30 - ACA Insured New Hampshire Housing Finance Authority, FHLMC Multifamily Housing Remarketed Revenue Bonds, Countryside LP, Series 1994: 3,725 6.000%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 3,895,940 6,945 6.100%, 7/01/24 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 7,266,623 - ------------------------------------------------------------------------------------------------------------------------------------ 13,935 Total New Hampshire 14,439,872 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 7.2% (4.9% OF TOTAL INVESTMENTS) 3,000 New Jersey Economic Development Authority, Transportation 5/09 at 100.00 AAA 3,129,660 Sublease Revenue Bonds, Light Rail Transit System, Series 1999A, 5.250%, 5/01/17 (Pre-refunded 5/01/09) - FSA Insured 2,590 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 2,666,690 Loan Revenue Bonds, Series 2000A, 6.000%, 6/01/13 - MBIA Insured (Alternative Minimum Tax) 21 Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY (continued) $ 8,750 New Jersey Transportation Trust Fund Authority, Transportation 6/07 at 102.00 AAA $ 9,073,138 System Bonds, Series 1996B, 5.250%, 6/15/16 (Pre-refunded 6/15/07) 4,500 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 4,991,625 System Bonds, Series 2001C, 5.500%, 12/15/18 - FSA Insured 9,250 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 10,141,978 System Bonds, Series 2003C, 5.500%, 6/15/23 (Pre-refunded 6/15/13) 10,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 10,399,500 5.000%, 1/01/20 - FSA Insured 13,775 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 BBB 14,292,802 Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 4,300 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 BBB 4,775,537 Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39 West Deptford Township, Gloucester County, New Jersey, General Obligation Bonds, Series 2000: 3,150 5.500%, 9/01/21 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 100.00 Aaa 3,371,666 3,335 5.500%, 9/01/22 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 100.00 Aaa 3,569,684 - ------------------------------------------------------------------------------------------------------------------------------------ 62,650 Total New Jersey 66,412,280 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 12.9% (8.6% OF TOTAL INVESTMENTS) 5,500 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA 5,667,860 Mortgage Revenue Bonds, Kaleida Health, Series 2004, 5.050%, 2/15/25 35 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA 35,741 Revenue Bonds, Mental Health Services Facilities, Series 1996B, 5.375%, 2/15/26 - MBIA Insured 2,070 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 2,163,295 Bonds, 853 Schools Program, Gateway-Longview Inc., Series 1998A, 5.500%, 7/01/18 - AMBAC Insured 2,250 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AAA 2,393,303 Bonds, State University Dormitory Facilities, Series 1999C, 5.500%, 7/01/29 (Pre-refunded 7/01/09) - MBIA Insured Dormitory Authority of the State of New York, Revenue Bonds, Marymount Manhattan College, Series 1999: 1,580 6.375%, 7/01/13 - RAAI Insured 7/09 at 101.00 AA 1,704,678 9,235 6.125%, 7/01/21 - RAAI Insured 7/09 at 101.00 AA 9,876,925 1,500 Dormitory Authority of the State of New York, Revenue Bonds, 8/07 at 101.00 AAA 1,544,910 St. Barnabas Hospital, Series 1997, 5.450%, 8/01/35 - AMBAC Insured 3,000 Dormitory Authority of the State of New York, Third General 1/08 at 102.00 AAA 3,140,910 Resolution Consolidated Revenue Bonds, City University System, Series 1997-1, 5.375%, 7/01/24 (Pre-refunded 1/01/08) - FSA Insured 17,000 Dormitory Authority of the State of New York, Third General 7/09 at 101.00 AAA 18,082,730 Resolution Consolidated Revenue Bonds, City University System, Series 1999-1, 5.500%, 7/01/29 (Pre-refunded 7/01/09) - FSA Insured 1,500 Hempstead Industrial Development Agency, New York, Resource 12/10 at 100.00 BB+ 1,553,760 Recovery Revenue Refunding Bonds, American Ref-Fuel Company of Hempstead LP, Series 2001, 5.000%, 12/01/10 (Mandatory put 6/01/10) 13,220 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 14,252,614 Tax Fund Bonds, Series 2002A, 5.500%, 11/15/26 - FSA Insured 7,270 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 7,361,384 Water and Sewerage System Revenue Bonds, Fiscal Series 1996B, 5.750%, 6/15/26 (Pre-refunded 6/15/06) - MBIA Insured 13,380 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 13,547,785 Water and Sewerage System Revenue Bonds, Fiscal Series 1996B, 5.750%, 6/15/26 - MBIA Insured 3,495 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 3,537,814 Water and Sewerage System Revenue Bonds, Fiscal Series 1997A, 5.500%, 6/15/24 (Pre-refunded 6/15/06) - MBIA Insured 1,380 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 1,396,850 Water and Sewerage System Revenue Bonds, Fiscal Series 1997A, 5.500%, 6/15/24 - MBIA Insured 10,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AA+ (4) 10,691,600 Water and Sewerage System Revenue Bonds, Fiscal Series 2000A, 5.750%, 6/15/30 (Pre-refunded 6/15/09) 22 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 7,810 New York City Transitional Finance Authority, New York, Future 8/09 at 101.00 AAA $ 8,372,632 Tax Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24 (Pre-refunded 8/15/09) 5 New York City, New York, General Obligation Bonds, Fiscal 8/06 at 100.00 A+ 5,058 Series 1987D, 8.500%, 8/01/08 6,300 New York City, New York, General Obligation Bonds, Fiscal 5/10 at 101.00 AAA 6,912,990 Series 2000A, 6.250%, 5/15/26 - FSA Insured 3,000 New York State Energy Research and Development Authority, 9/08 at 102.00 AAA 3,181,590 Pollution Control Revenue Bonds, Rochester Gas and Electric Corporation, Series 1998A, 5.950%, 9/01/33 - MBIA Insured (Alternative Minimum Tax) 2,320 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 2,442,450 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 111,850 Total New York 117,866,879 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.8% (0.5% OF TOTAL INVESTMENTS) 4,900 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 4,946,844 Healthcare System Revenue Bonds, DBA Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45 2,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/08 at 102.00 AAA 2,063,120 Revenue Bonds, Series 1998A, 5.000%, 1/01/20 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 6,900 Total North Carolina 7,009,964 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 3.9% (2.6% OF TOTAL INVESTMENTS) 7,500 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 1/10 at 101.00 AAA 7,622,850 5.000%, 1/01/31 - FSA Insured 3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 3,712,598 Initiatives, Series 2004A, 5.000%, 5/01/30 3,495 Ohio Housing Finance Agency, GNMA Mortgage-Backed 7/09 at 100.00 Aaa 3,514,083 Securities Program Residential Mortgage Revenue Bonds, Series 1999C, 5.750%, 9/01/30 (Alternative Minimum Tax) 6,600 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 6,652,602 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) 13,600 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 14,053,288 Revenue Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 34,845 Total Ohio 35,555,421 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.4% (0.1% OF TOTAL INVESTMENTS) 3,400 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 6/09 at 100.00 B- 3,400,816 Bonds, American Airlines Inc., Series 2000B, 6.000%, 6/01/35 (Mandatory put 12/01/08) (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 1.0% (0.7% OF TOTAL INVESTMENTS) 9,150 Port of St. Helens, Oregon, Pollution Control Revenue Bonds, No Opt. Call Baa1 9,218,900 Portland General Electric Company, Series 1985B, 4.800%, 6/01/10 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 3.4% (2.3% OF TOTAL INVESTMENTS) 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 1,441,563 3,125 0.000%, 5/15/23 - FSA Insured No Opt. Call AAA 1,371,438 3,135 0.000%, 5/15/24 - FSA Insured No Opt. Call AAA 1,308,612 3,155 0.000%, 5/15/26 - FSA Insured No Opt. Call AAA 1,188,457 4,145 0.000%, 11/15/26 - FSA Insured No Opt. Call AAA 1,523,785 2,800 0.000%, 5/15/28 - FSA Insured No Opt. Call AAA 950,684 3,000 0.000%, 11/15/28 - FSA Insured No Opt. Call AAA 993,930 3,415 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 3,594,219 Resource Recovery Revenue Refunding Bonds, Panther Creek Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) 23 Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA (continued) $ 11,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 11/08 at 102.00 AAA $ 11,186,230 Catholic Health East, Series 1998A, 4.875%, 11/15/18 - AMBAC Insured Pennsylvania Economic Development Financing Authority, Senior Lien Resource Recovery Revenue Bonds, Northampton Generating Project, Series 1994A: 2,100 6.400%, 1/01/09 (Alternative Minimum Tax) 7/06 at 100.00 BB 2,099,748 4,500 6.500%, 1/01/13 (Alternative Minimum Tax) 7/06 at 100.00 BB 4,499,460 25 Pennsylvania Economic Development Financing Authority, No Opt. Call N/R 25,141 Senior Lien Resource Recovery Revenue Bonds, Northampton Generating Project, Series 1994B, 6.750%, 1/01/07 (Alternative Minimum Tax) 600 Pennsylvania Economic Development Financing Authority, 7/06 at 100.00 N/R 598,788 Subordinate Resource Recovery Revenue Bonds, Northampton Generating Project, Series 1994C, 6.875%, 1/01/11 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 44,125 Total Pennsylvania 30,782,055 - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.1% (0.1% OF TOTAL INVESTMENTS) 1,250 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 AAA 1,363,412 Revenue Bonds, Series 2000B, 5.875%, 7/01/21 (Pre-refunded 7/01/10) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 1.2% (0.8% OF TOTAL INVESTMENTS) 2,000 Kent County Water Authority, Rhode Island, General Revenue 7/12 at 100.00 AAA 2,072,300 Bonds, Series 2002A, 5.000%, 7/15/23 - MBIA Insured Rhode Island Health and Educational Building Corporation, Revenue Refunding Bonds, Salve Regina University, Series 2002: 1,260 5.250%, 3/15/17 - RAAI Insured 3/12 at 101.00 AA 1,323,857 1,080 5.250%, 3/15/18 - RAAI Insured 3/12 at 101.00 AA 1,133,017 7,000 Rhode Island Housing and Mortgage Finance Corporation, 10/14 at 100.00 AA+ 6,750,520 Homeownership Opportunity Bond Program, Series 50A, 4.650%, 10/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ 11,340 Total Rhode Island 11,279,694 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 4.2% (2.8% OF TOTAL INVESTMENTS) 2,625 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 2,769,191 FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%, 2/15/25 - MBIA Insured 22,855 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 6,692,401 Revenue Bonds, Series 2004A-2, 0.000%, 1/01/31 - AMBAC Insured 6,925 South Carolina, General Obligation Bonds, Series 1999A, 10/09 at 101.00 Aaa 6,931,787 4.000%, 10/01/14 21,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 22,000,019 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 - ------------------------------------------------------------------------------------------------------------------------------------ 53,405 Total South Carolina 38,393,398 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.3% (0.9% OF TOTAL INVESTMENTS) 2,860 Johnson City Health and Educational Facilities Board, 7/23 at 100.00 AAA 2,959,042 Tennessee, Hospital Revenue Refunding and Improvement Bonds, Johnson City Medical Center, Series 1998C, 5.125%, 7/01/25 (Pre-refunded 7/01/23) - MBIA Insured 1,700 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 1,818,150 Revenue Bonds, Series 1999D, 6.000%, 3/01/24 - AMBAC Insured (Alternative Minimum Tax) 6,000 Metropolitan Government of Nashville-Davidson County Health 12/17 at 100.00 AAA 6,904,080 and Educational Facilities Board, Tennessee, Revenue Refunding and Improvement Bonds, Meharry Medical College, Series 1996, 6.000%, 12/01/19 - AMBAC Insured 500 Tennessee Housing Development Agency, Homeownership 7/10 at 101.00 AA 502,235 Program Bonds, Series 2000-1, 6.375%, 7/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 11,060 Total Tennessee 12,183,507 - ------------------------------------------------------------------------------------------------------------------------------------ 24 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 5.4% (3.6% OF TOTAL INVESTMENTS) $ 3,975 Bell County Health Facilities Development Corporation, Texas, 2/10 at 101.00 AAA $ 4,278,690 Revenue Bonds, Scott and White Memorial Hospital and Scott, Sherwood and Brindley Foundation, Series 2000A, 6.125%, 8/15/23 - MBIA Insured Central Texas Regional Mobility Authority, Travis and Williamson Counties, Toll Road Revenue Bonds, Series 2005: 4,000 5.000%, 1/01/35 - FGIC Insured 1/15 at 100.00 AAA 4,080,120 3,000 5.000%, 1/01/45 - FGIC Insured 1/15 at 100.00 AAA 3,038,790 1,000 Fort Worth, Texas, Water and Sewerage Revenue Bonds, 2/08 at 100.00 AA (4) 1,027,010 Series 1998, 5.250%, 2/15/15 (Pre-refunded 2/15/08) 1,000 Harlingen Independent School District, Cameron County, Texas, 8/09 at 100.00 AAA 1,058,510 Unlimited Tax School Building Bonds, Series 1999, 5.650%, 8/15/29 (Pre-refunded 8/15/09) 1,625 Harris County Health Facilities Development Corporation, 7/09 at 101.00 AAA 1,715,951 Texas, Revenue Bonds, Christus Health, Series 1999A, 5.375%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured 4,000 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AAA 4,098,080 Obligation Bonds, Series 2003, 5.000%, 2/15/27 - AMBAC Insured 3,885 Houston Independent School District, Public Facility Corporation, No Opt. Call AAA 2,059,439 Harris County, Texas, Lease Revenue Bonds, Cesar E. Chavez High School, Series 1998A, 0.000%, 9/15/19 - AMBAC 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 2,257,595 3,705 0.000%, 8/15/22 8/06 at 41.33 AAA 1,510,788 320 Lubbock Housing Finance Corporation, Texas, GNMA 6/07 at 102.00 AAA 323,046 Mortgage-Backed Securities Program Single Family Mortgage Revenue Refunding Bonds, Series 1997A, 6.125%, 12/01/17 3,480 Pearland, Texas, General Obligation Bonds, Series 2002, 3/12 at 100.00 AAA 3,554,855 5.000%, 3/01/27 - FGIC Insured 6,835 San Antonio, Texas, Electric and Gas System Revenue 2/09 at 100.00 Aa1 6,816,340 Refunding Bonds, New Series 1998A, 4.500%, 2/01/21 6,000 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 6,152,940 Texas, Limited Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%, 2/01/26 4,000 Tarrant Regional Water District, Texas, Water Revenue 3/13 at 100.00 AAA 4,140,240 Refunding and Improvement Bonds, Series 1999, 5.000%, 3/01/22 - FSA Insured 1,740 Texas, General Obligation Bonds, Water Financial Assistance, 8/09 at 100.00 AAA 1,817,256 State Participation Program, Series 1999C, 5.500%, 8/01/29 - MBIA Insured 1,690 Webb County, Laredo, Texas, Combination Tax and Sewer 2/08 at 100.00 AAA 1,692,062 System, Revenue Certificates of Obligation, Series 1998A, 4.500%, 2/15/18 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 55,185 Total Texas 49,621,712 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 4.4% (2.9% OF TOTAL INVESTMENTS) 2,000 Intermountain Power Agency, Utah, Power Supply Revenue 7/06 at 102.00 AAA 2,047,620 Bonds, Special Obligation Crossover, Sixth Series 1996B, 6.000%, 7/01/16 (Pre-refunded 7/01/06) - MBIA Insured 3,315 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 3,457,512 Refunding Bonds, Series 1997B, 5.750%, 7/01/19 (Pre-refunded 7/01/07) - MBIA Insured 6,685 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 6,956,612 Refunding Bonds, Series 1997B, 5.750%, 7/01/19 - MBIA Insured Utah County, Utah, Hospital Revenue Bonds, IHC Health Services Inc., Series 1997: 12,885 5.250%, 8/15/21 - MBIA Insured (ETM) 8/07 at 101.00 AAA 13,257,763 3,900 5.250%, 8/15/26 - MBIA Insured (ETM) 8/07 at 101.00 AAA 4,012,827 3,670 Utah Housing Corporation, Single Family Mortgage Bonds, 1/12 at 100.00 AA- 3,706,223 Series 2002A-1, 5.300%, 7/01/18 (Alternative Minimum Tax) 20 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100.00 AA 20,070 Series 2000B, 6.250%, 7/01/22 (Alternative Minimum Tax) 25 Nuveen Performance Plus Municipal Fund, Inc. (NPP) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTAH (continued) $ 1,875 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- $ 1,898,344 Series 2000D-1, 6.050%, 7/01/14 (Alternative Minimum Tax) 685 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 687,350 Series 2000E-1, Class II, 6.150%, 1/01/27 (Alternative Minimum Tax) 2,230 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 Aa1 2,267,241 Series 2000E-1, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax) 955 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/11 at 100.00 AA 974,768 Series 2001A-2, 5.650%, 7/01/27 (Alternative Minimum Tax) 780 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/11 at 100.00 Aa2 796,887 Series 2001B-1, 5.750%, 7/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 39,000 Total Utah 40,083,217 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGIN ISLANDS - 0.8% (0.6% OF TOTAL INVESTMENTS) 4,700 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/14 at 100.00 AA 4,816,701 Loan Note, Series 2003, 5.000%, 10/01/33 - RAAI Insured 2,500 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 2,746,550 Refinery Project - Hovensa LLC, Series 2003, 6.125%, 7/01/22 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 7,200 Total Virgin Islands 7,563,251 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 4.1% (2.8% OF TOTAL INVESTMENTS) 12,235 Chelan County Public Utility District 1, Washington, Columbia No Opt. Call AAA 4,539,674 River-Rock Island Hydro-Electric System Revenue Refunding Bonds, Series 1997A, 0.000%, 6/01/26 - MBIA Insured 3,100 Cowlitz County Public Utilities District 1, Washington, 9/14 at 100.00 AAA 3,185,994 Electric Production Revenue Bonds, Series 2004, 5.000%, 9/01/28 - FGIC Insured 5,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 5,371,500 Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16 2,015 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 2,193,529 Terminal 18, Series 1999A, 6.000%, 9/01/29 (Pre-refunded 3/01/10) - MBIA Insured 4,685 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AAA 4,906,928 Bonds, Providence Services, Series 1999, 5.375%, 12/01/19 - MBIA Insured 5,000 Washington State Housing Finance Commission, Non-Profit 7/09 at 101.00 AA 5,310,700 Housing Revenue Bonds, Kline Galland Center, Series 1999, 6.000%, 7/01/29 - RAAI Insured 12,000 Washington, Motor Vehicle Fuel Tax General Obligation Bonds, 1/11 at 100.00 Aa1 12,418,320 Series 2001D, 5.250%, 1/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ 44,035 Total Washington 37,926,645 - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS) 5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,092,350 Appalachian Power Company, Series 2003L, 5.500%, 10/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.2% (1.5% OF TOTAL INVESTMENTS) 11,620 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 101.00 AA 12,518,458 Bonds, Marshfield Clinic, Series 1999, 6.250%, 2/15/29 - RAAI Insured 26 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN (continued) $ 7,490 Wisconsin Health and Educational Facilities Authority, Revenue 7/08 at 103.00 N/R $ 7,561,679 Bonds, Millennium Housing Foundation Inc., Series 1998, 6.100%, 1/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ 19,110 Total Wisconsin 20,080,137 - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,463,695 Total Investments (cost $1,290,078,842) - 148.9% 1,365,689,434 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.3% 30,230,777 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.2)% (479,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 916,920,211 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 27 Nuveen Municipal Advantage Fund, Inc. (NMA) Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 3.2% (2.1% OF TOTAL INVESTMENTS) $ 10,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101.00 AAA $ 10,521,900 Improvement Warrants, Series 1999A, 5.375%, 2/01/36 (Pre-refunded 2/01/09) - FGIC Insured 5,075 Lauderdale County and Florence Healthcare Authority, Alabama, 7/09 at 101.00 AAA 5,288,302 Revenue Bonds, Coffee Health Group, Series 1999A, 5.250%, 7/01/24 - MBIA Insured 5,155 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 5,523,067 Environmental Improvement Revenue Bonds, MeadWestvaco Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 20,230 Total Alabama 21,333,269 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.4% (0.2% OF TOTAL INVESTMENTS) Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series 2005A: 1,125 5.250%, 12/01/34 - FGIC Insured 12/14 at 100.00 AAA 1,179,214 1,280 5.250%, 12/01/41 - FGIC Insured 12/14 at 100.00 AAA 1,332,454 - ------------------------------------------------------------------------------------------------------------------------------------ 2,405 Total Alaska 2,511,668 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.8% (0.5% OF TOTAL INVESTMENTS) 5,000 Maricopa County Pollution Control Corporation, Arizona, 5/06 at 101.00 BBB 5,055,850 Remarketed Revenue Refunding Bonds, Public Service Company of New Mexico, Series 1992A, 5.750%, 11/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 11.4% (7.5% OF TOTAL INVESTMENTS) 2,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 1,904,025 Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 - AMBAC Insured Calexico Unified School District, Imperial County, California, General Obligation Bonds, Series 2005B: 4,070 0.000%, 8/01/32 - FGIC Insured No Opt. Call AAA 1,094,708 6,410 0.000%, 8/01/34 - FGIC Insured No Opt. Call AAA 1,557,822 3,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 3,012,750 Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/33 7,500 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 7,694,400 Department of Mental Health, Coalinga State Hospital, Series 2004A, 5.125%, 6/01/29 9,955 Capistrano Unified School District, Orange County, California, No Opt. Call AAA 2,846,433 Special Tax Bonds, Community Facilities District, Series 2005, 0.000%, 9/01/31 - FGIC Insured Colton Joint Unified School District, San Bernardino County, California, General Obligation Bonds, Series 2006C: 3,800 0.000%, 2/01/33 - FGIC Insured 2/15 at 38.73 AAA 936,890 3,795 0.000%, 2/01/37 - FGIC Insured No Opt. Call AAA 808,449 7,535 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 9,547,372 Securities Program Home Mortgage Revenue Bonds, Series 1989, 7.750%, 5/01/22 (Alternative Minimum Tax) (ETM) 8,145 Cupertino Union School District, Santa Clara County, California, 8/13 at 55.54 AAA 3,076,448 General Obligation Bonds, Series 2003B, 0.000%, 8/01/25 - FGIC Insured 2,990 East Bay Municipal Utility District, Alameda and Contra 6/06 at 100.00 AAA 2,990,538 Costa Counties, California, Water System Subordinated Revenue Refunding Bonds, Series 1996, 4.750%, 6/01/21 - FGIC Insured 2,000 Folsom Cordova Unified School District, Sacramento County, No Opt. Call AAA 656,460 California, General Obligation Bonds, School Facilities Improvement District 1, Series 2004B, 0.000%, 10/01/28 - MBIA Insured 3,360 Folsom Cordova Unified School District, Sacramento County, No Opt. Call AAA 1,175,966 California, General Obligation Bonds, School Facilities Improvement District 2, Series 2002A, 0.000%, 7/01/27 - MBIA Insured 2,315 Gateway Unified School District, California, General Obligation No Opt. Call AAA 624,888 Bonds, Series 2004B, 0.000%, 8/01/32 - FGIC Insured 3,000 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 1,109,190 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 0.000%, 6/01/26 - FSA Insured 28 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 1,275 Madera Unified School District, Madera County, California, 8/12 at 100.00 AAA $ 1,354,267 General Obligation Bonds, Series 2002, 5.250%, 8/01/23 - FSA Insured North Orange County Community College District, California, General Obligation Bonds, Series 2003B: 7,735 0.000%, 8/01/25 - FGIC Insured No Opt. Call AAA 3,022,142 4,000 0.000%, 8/01/26 - FGIC Insured No Opt. Call AAA 1,479,600 5,000 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 5,806,300 Residential Mortgage Revenue Refunding Bonds, Series 1991B, 7.375%, 2/01/12 (ETM) 5,000 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 6,505,600 Single Family Restructured Mortgage Revenue Bonds, Series 1986A, 8.000%, 3/01/16 (Alternative Minimum Tax) (ETM) 9,315 Perris, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 11,357,407 Single Family Mortgage Revenue Bonds, Series 1989A, 7.600%, 1/01/23 (Alternative Minimum Tax) (ETM) 23,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 5,462,270 County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/35 - MBIA Insured 7,250 San Jose-Evergreen Community College District, Santa Clara 9/15 at 100.00 AAA 2,151,945 County, California, General Obligation Bonds, Series 2005A, 0.000%, 9/01/29 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 132,950 Total California 76,175,870 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 4.3% (2.9% OF TOTAL INVESTMENTS) 8,350 Colorado Health Facilities Authority, Remarketed Revenue 7/06 at 102.00 AAA 8,542,217 Bonds, Kaiser Permanente System, Series 1994A, 5.350%, 11/01/16 (ETM) 2,000 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 AAA 1,970,200 Revenue Bonds, Convention Center Hotel, Series 2006, 4.750%, 12/01/35 (WI/DD, Settling 5/02/06) - XLCA Insured E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 1997B: 2,650 0.000%, 9/01/16 - MBIA Insured No Opt. Call AAA 1,661,921 8,160 0.000%, 9/01/26 - MBIA Insured No Opt. Call AAA 3,000,106 1,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 1,089,210 Bonds, Series 2000A, 5.750%, 9/01/35 - MBIA Insured E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B: 7,500 0.000%, 9/01/29 - MBIA Insured No Opt. Call AAA 2,368,275 10,000 0.000%, 9/01/32 - MBIA Insured No Opt. Call AAA 2,715,900 Platte River Power Authority, Colorado, Power Revenue Refunding Bonds, Series 2002EE: 2,000 5.375%, 6/01/17 6/12 at 100.00 AA 2,136,480 5,000 5.375%, 6/01/18 6/12 at 100.00 AA 5,341,200 - ------------------------------------------------------------------------------------------------------------------------------------ 46,660 Total Colorado 28,825,509 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.4% (0.3% OF TOTAL INVESTMENTS) 355 District of Columbia Housing Finance Agency, GNMA 6/06 at 102.00 AAA 359,235 Collateralized Single Family Mortgage Revenue Bonds, Series 1988F-1, 6.375%, 6/01/26 (Alternative Minimum Tax) 2,165 District of Columbia Housing Finance Agency, GNMA/FNMA 6/07 at 102.00 AAA 2,169,633 Single Family Mortgage Revenue Bonds, Series 1997B, 5.900%, 12/01/28 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,520 Total District of Columbia 2,528,868 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.9% (1.3% OF TOTAL INVESTMENTS) 2,770 Florida Housing Finance Corporation, Housing Revenue Bonds, 12/10 at 100.00 AAA 2,859,305 Stratford Point Apartments, Series 2000O-1, 5.850%, 12/01/31 - FSA Insured (Alternative Minimum Tax) 10,130 Tampa, Florida, Healthcare System Revenue Bonds, Allegany 6/06 at 100.00 AAA 10,131,114 Health System - St. Mary's Hospital, Series 1993, 5.125%, 12/01/23 - MBIA Insured (ETM) - ------------------------------------------------------------------------------------------------------------------------------------ 12,900 Total Florida 12,990,419 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.6% (0.4% OF TOTAL INVESTMENTS) 4,000 Augusta, Georgia, Water and Sewerage Revenue Bonds, 10/14 at 100.00 AAA 4,212,600 Series 2004, 5.250%, 10/01/39 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 29 Nuveen Municipal Advantage Fund, Inc. (NMA) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.5% (0.3% OF TOTAL INVESTMENTS) $ 2,215 Hawaii Housing and Community Development Corporation, 7/10 at 102.00 AAA $ 2,303,268 GNMA Collateralized Multifamily Housing Revenue Bonds, Sunset Villas, Series 2000, 5.700%, 7/20/31 825 Hawaii Housing Finance and Development Corporation, Single 7/07 at 102.00 AAA 830,478 Family Mortgage Purchase Revenue Bonds, Series 1997A, 5.750%, 7/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 3,040 Total Hawaii 3,133,746 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 17.3% (11.4% OF TOTAL INVESTMENTS) 12,500 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 12,953,750 Obligation Bonds, Dedicated Tax Revenues, Series 1997A, 5.250%, 12/01/27 - AMBAC Insured 4,000 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 4,203,160 Obligation Bonds, Dedicated Tax Revenues, Series 1997, 5.750%, 12/01/20 (Pre-refunded 12/01/07) - AMBAC Insured 2,175 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 717,141 Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1, 0.000%, 12/01/28 - FGIC Insured 2,250 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 637,988 Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/31 - FGIC Insured 5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 6,531,616 Alive 21 Program, Series 2000A, 6.500%, 1/01/35 (Pre-refunded 7/01/10) - FGIC Insured 5,000 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 AAA 5,142,000 Revenue Bonds, O'Hare International Airport, Series 2001A, 5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 5,000 Chicago, Illinois, Second Lien Wastewater Transmission 1/08 at 102.00 AAA 5,221,450 Revenue Bonds, Series 1997, 5.250%, 1/01/28 (Pre-refunded 1/01/08) - AMBAC Insured 6,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 6,278,340 Medical Center, Series 2002, 5.750%, 5/15/22 6,165 Illinois Health Facilities Authority, Revenue Bonds, Sarah Bush 2/07 at 102.00 A 6,315,303 Lincoln Health Center, Series 1996B, 5.750%, 2/15/22 4,210 Illinois Health Facilities Authority, Revenue Bonds, Victory 8/07 at 101.00 BBB- 4,196,486 Health Services, Series 1997A, 5.375%, 8/15/16 10,115 Illinois Health Facilities Authority, Revenue Refunding Bonds, 11/06 at 102.00 AAA 10,442,827 Rush-Presbyterian-St. Luke's Medical Center Obligated Group, Series 1996A, 6.250%, 11/15/20 - MBIA Insured 10,740 Lake and McHenry Counties Community Unit School 1/15 at 66.94 Aaa 4,637,639 District 118, Wauconda, Illinois, General Obligation Bonds, Series 2005B, 0.000%, 1/01/23 - FSA Insured Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 1999A: 13,455 5.500%, 12/15/24 - FGIC Insured 12/09 at 101.00 AAA 14,251,267 10,430 5.250%, 12/15/28 - FGIC Insured 12/09 at 101.00 AAA 10,916,664 2,025 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 352,978 Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%, 6/15/41 - MBIA Insured 6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,507,760 Refunding Bonds, McCormick Place Expansion Project, Series 1996A, 0.000%, 6/15/24 - MBIA Insured 4,600 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 5,628,882 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1990A, 7.200%, 11/01/20 - AMBAC Insured 1,940 University of Illinois, Auxiliary Facilities Systems Revenue 4/13 at 100.00 AAA 2,005,262 Bonds, Series 2003A, 5.000%, 4/01/23 - AMBAC Insured 7,500 Valley View Public Schools, Community Unit School No Opt. Call AAA 2,900,250 District 365U of Will County, Illinois, General Obligation Bonds, Series 2005, 0.000%, 11/01/25 - MBIA Insured 23,125 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aaa 9,640,350 Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/24 (WI/DD, Settling 5/08/06) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 143,095 Total Illinois 115,481,113 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.6% (2.4% OF TOTAL INVESTMENTS) 5,205 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 5,622,129 Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30 (Pre-refunded 8/15/10) - MBIA Insured 30 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA (continued) $ 9,000 Indiana Health Facility Financing Authority, Hospital Revenue 5/06 at 102.00 AAA $ 9,191,610 Refunding and Improvement Bonds, Community Hospitals of Indiana, Series 1995, 5.700%, 5/15/22 - MBIA Insured 6,075 LaGrange County Jail Building Corporation, Indiana, 10/09 at 101.00 A3 (4) 6,442,659 First Mortgage Jail Bonds, Series 1998, 5.400%, 10/01/21 (Pre-refunded 10/01/09) 2,725 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/09 at 102.00 BBB 2,823,618 Madison Center Inc., Series 1999, 5.450%, 2/15/12 - ------------------------------------------------------------------------------------------------------------------------------------ 23,005 Total Indiana 24,080,016 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.8% (1.2% OF TOTAL INVESTMENTS) 5,000 Burlington, Kansas, Environmental Improvement Revenue 9/15 at 100.00 A3 5,036,200 Bonds, Kansas City Power and Light Company Project, Series 1998A, 4.750%, 9/01/15 (Mandatory put 10/01/07) 4,935 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AA+ 5,137,582 Series 2004A, 5.000%, 3/01/22 1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA 1,846,548 Gas and Electric Company, Series 2004, 5.300%, 6/01/31 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 11,685 Total Kansas 12,020,330 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.6% (1.1% OF TOTAL INVESTMENTS) 5,500 Louisville and Jefferson County Metropolitan Sewer District, 5/07 at 101.00 AAA 5,625,895 Kentucky, Sewer and Drainage System Revenue Bonds, Series 1997A, 5.250%, 5/15/27 - MBIA Insured 4,950 Louisville and Jefferson County Metropolitan Sewer District, 11/07 at 101.00 AAA 5,086,224 Kentucky, Sewer and Drainage System Revenue Bonds, Series 1997B, 5.200%, 5/15/25 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 10,450 Total Kentucky 10,712,119 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 7.6% (5.0% OF TOTAL INVESTMENTS) 13,500 DeSoto Parish, Louisiana, Pollution Control Revenue Refunding 9/09 at 102.00 AAA 14,542,200 Bonds, Cleco Utility Group Inc. Project, Series 1999, 5.875%, 9/01/29 - AMBAC Insured 8,720 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 10,890,234 Revenue Bonds, Comm-Care Corporation Project, Series 1994, 11.000%, 2/01/14 6,650 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 6,936,682 Rouge General Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, Series 2001B: 6,000 5.500%, 5/15/30 5/11 at 101.00 BBB 6,165,780 11,750 5.875%, 5/15/39 5/11 at 101.00 BBB 12,321,050 - ------------------------------------------------------------------------------------------------------------------------------------ 46,620 Total Louisiana 50,855,946 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 1.9% (1.3% OF TOTAL INVESTMENTS) 1,750 Massachusetts Health and Educational Facilities Authority, 1/09 at 101.00 AAA 1,784,562 Revenue Bonds, UMass Memorial Healthcare, Series 1998A, 5.000%, 7/01/28 - AMBAC Insured 955 Massachusetts Housing Finance Agency, Single Family Housing 12/09 at 100.00 AAA 957,139 Revenue Bonds, Series 77, 5.950%, 6/01/25 - FSA Insured (Alternative Minimum Tax) 10,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 10,133,600 System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 12,705 Total Massachusetts 12,875,301 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.6% (1.1% OF TOTAL INVESTMENTS) 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 BB- 4,772,623 3,000 5.250%, 8/15/28 8/08 at 101.00 BB- 2,822,610 3,275 Michigan State Hospital Finance Authority, Revenue Refunding 8/06 at 100.00 BB- 3,276,572 Bonds, Detroit Medical Center Obligated Group, Series 1993A, 6.500%, 8/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ 11,270 Total Michigan 10,871,805 - ------------------------------------------------------------------------------------------------------------------------------------ 31 Nuveen Municipal Advantage Fund, Inc. (NMA) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.7% (1.1% OF TOTAL INVESTMENTS) $ 5,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA $ 5,183,500 Minnesota, Subordinate Airport Revenue Bonds, Series 2001C, 5.250%, 1/01/32 - FGIC Insured 3,865 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 3,919,497 Revenue Bonds, Series 2000C, 5.550%, 7/01/24 (Alternative Minimum Tax) 2,260 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 100.00 AA+ 2,267,729 Revenue Bonds, Series 2000J, 5.400%, 1/01/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 11,125 Total Minnesota 11,370,726 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.8% (0.5% OF TOTAL INVESTMENTS) 10,205 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AAA 3,261,110 Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/29 - AMBAC Insured 220 Missouri Housing Development Commission, Single Family 9/09 at 102.00 AAA 231,631 Mortgage Revenue Bonds, Homeownership Loan Program, Series 2000A-1, 7.500%, 3/01/31 (Alternative Minimum Tax) 1,500 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 1,544,460 Agency, Mass Transit Sales Tax Appropriation Bonds, Metrolink Cross County Extension Project, Series 2002B, 5.000%, 10/01/32 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 11,925 Total Missouri 5,037,201 - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 1.1% (0.7% OF TOTAL INVESTMENTS) 6,920 Montana Board of Housing, Single Family Mortgage Bonds, 6/07 at 101.50 AA+ 7,093,138 Series 1997A-1, 6.050%, 12/01/37 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 3.7% (2.4% OF TOTAL INVESTMENTS) 7,310 Clark County, Nevada, Limited Tax General Obligation Bank 7/10 at 100.00 AA 7,728,790 Bonds, Series 2000, 5.500%, 7/01/19 7,500 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/10 at 101.00 AAA 8,205,750 Series 1999A, 6.000%, 7/01/29 (Pre-refunded 7/01/10) - MBIA Insured 7,910 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 8,198,399 Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured 455 Nevada Housing Division, Single Family Mortgage Bonds, 4/07 at 102.00 Aaa 461,998 Senior Series 1997C-2, 5.750%, 4/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 23,175 Total Nevada 24,594,937 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 3.1% (2.1% OF TOTAL INVESTMENTS) Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002: 15,025 5.750%, 6/01/32 6/12 at 100.00 BBB 15,589,789 5,000 6.125%, 6/01/42 6/12 at 100.00 BBB 5,267,850 - ------------------------------------------------------------------------------------------------------------------------------------ 20,025 Total New Jersey 20,857,639 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.1% (0.8% OF TOTAL INVESTMENTS) 7,500 Farmington, New Mexico, Pollution Control Revenue Refunding 10/06 at 101.00 BBB 7,614,300 Bonds, Public Service Company of New Mexico - San Juan Project, Series 1997B, 5.800%, 4/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 16.5% (10.9% OF TOTAL INVESTMENTS) 4,395 Dormitory Authority of the State of New York, Revenue Bonds, 2/07 at 102.00 AA- 4,536,079 Mental Health Services Facilities Improvements, Series 1997B, 5.625%, 2/15/21 2,965 Dormitory Authority of the State of New York, Revenue Bonds, 2/07 at 102.00 AA- (4) 3,068,508 Mental Health Services Facilities Improvements, Series 1997B, 5.625%, 2/15/21 (Pre-refunded 2/15/07) 3,655 Dormitory Authority of the State of New York, Revenue Bonds, 5/08 at 101.00 AA- (4) 3,794,658 State University Educational Facilities, Series 1997, 5.125%, 5/15/27 (Pre-refunded 5/15/08) 7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 7,260,260 Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29 32 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) Nassau County, New York, General Obligation Improvement Bonds, Series 2000F: $ 3,980 7.000%, 3/01/11 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA $ 4,449,839 4,070 7.000%, 3/01/12 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,550,464 3,925 7.000%, 3/01/15 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,388,346 4,975 New York City Industrial Development Agency, New York, 12/08 at 102.00 Ba2 4,514,962 Special Facilities Revenue Bonds, British Airways PLC, Series 1998, 5.250%, 12/01/32 (Alternative Minimum Tax) 3,000 New York City Industrial Development Agency, New York, 12/12 at 101.00 Ba2 3,260,130 Special Facilities Revenue Bonds, British Airways PLC, Series 2002, 7.625%, 12/01/32 (Alternative Minimum Tax) 5,000 New York City Municipal Water Finance Authority, New York, 6/07 at 101.00 AAA 5,163,400 Water and Sewerage System Revenue Bonds, Fiscal Series 1997B, 5.750%, 6/15/29 (Pre-refunded 6/15/07) - FGIC Insured 9,850 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 10,531,226 Water and Sewerage System Revenue Bonds, Fiscal Series 2000A, 5.750%, 6/15/31 (Pre-refunded 6/15/09) - FGIC Insured 10,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 10,299,700 Water and Sewerage System Revenue Bonds, Fiscal Series 2005B, 5.000%, 6/15/36 - FSA Insured 10,000 New York City Transitional Finance Authority, New York, Future 5/10 at 101.00 AAA 10,943,200 Tax Secured Bonds, Fiscal Series 2000B, 6.000%, 11/15/29 (Pre-refunded 5/15/10) 10,000 New York City, New York, General Obligation Bonds, Fiscal 10/07 at 101.00 Aaa 10,426,300 Series 1997G, 6.000%, 10/15/26 (Pre-refunded 10/15/07) 7,435 New York City, New York, General Obligation Bonds, Fiscal 5/10 at 101.00 A+ (4) 8,069,875 Series 2000A, 5.750%, 5/15/20 (Pre-refunded 5/15/10) 9,495 New York State Mortgage Agency, Homeowner Mortgage 4/10 at 100.00 Aa1 9,830,933 Revenue Bonds, Series 94, 5.800%, 10/01/20 (Alternative Minimum Tax) 5,000 New York State Urban Development Corporation, Service 1/09 at 101.00 AAA 5,341,300 Contract Revenue Bonds, Correctional Facilities, Series 1999C, 6.000%, 1/01/29 (Pre-refunded 1/01/09) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 104,745 Total New York 110,429,180 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.9% (1.9% OF TOTAL INVESTMENTS) 1,175 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA 1,191,673 Revenue Bonds, 1998 Trust Agreement, Series 10A, 5.400%, 7/01/32 - AMBAC Insured (Alternative Minimum Tax) 7,520 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 7,759,888 Revenue Bonds, 1998 Trust Agreement, Series 7A, 6.250%, 1/01/29 (Alternative Minimum Tax) 4,780 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100.00 AA 4,818,192 Revenue Bonds, 1998 Trust Agreement, Series 8A, 5.950%, 1/01/27 (Alternative Minimum Tax) 5,690 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100.00 AA 5,850,003 Revenue Bonds, 1998 Trust Agreement, Series 9A, 5.875%, 7/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 19,165 Total North Carolina 19,619,756 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,450 North Dakota Housing Finance Agency, Home Mortgage 7/08 at 102.00 Aaa 2,457,032 Finance Program Bonds, Series 1998B, 5.500%, 7/01/29 - MBIA Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 4.5% (3.0% OF TOTAL INVESTMENTS) 5,000 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 5,093,200 Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.375%, 11/15/18 6,000 Cuyahoga County, Ohio, Hospital Revenue Bonds, University 7/09 at 101.00 AAA 6,302,820 Hospitals Health System, Series 1999, 5.500%, 1/15/30 - AMBAC Insured Montgomery County, Ohio, Hospital Facilities Revenue Bonds, Kettering Medical Center, Series 1999: 7,840 6.750%, 4/01/18 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 8,735,720 5,000 6.750%, 4/01/22 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,571,250 33 Nuveen Municipal Advantage Fund, Inc. (NMA) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ OHIO (continued) $ 1,725 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa $ 1,750,599 Securities Program Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 2,650 Ohio, General Obligation Bonds, Higher Education, 5/13 at 100.00 AA+ 2,750,965 Series 2003A, 5.000%, 5/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ 28,215 Total Ohio 30,204,554 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 2.3% (1.5% OF TOTAL INVESTMENTS) 2,890 Oklahoma State Industries Authority, Health System Revenue 8/09 at 101.00 AAA 3,060,741 Bonds, Integris Baptist Medical Center, Series 1999A, 5.750%, 8/15/29 - MBIA Insured 2,110 Oklahoma State Industries Authority, Health System Revenue 8/09 at 101.00 AAA 2,253,185 Bonds, Integris Baptist Medical Center, Series 1999A, 5.750%, 8/15/29 (Pre-refunded 8/15/09) - MBIA Insured 10,000 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B- 9,839,100 Bonds, American Airlines Inc., Series 2001B, 5.650%, 12/01/35 (Mandatory put 12/01/08) (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 15,000 Total Oklahoma 15,153,026 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 1.2% (0.8% OF TOTAL INVESTMENTS) 1,930 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,031,286 Resource Recovery Revenue Refunding Bonds, Panther Creek Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) 2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 2,826,902 Series 2004A, 5.500%, 12/01/31 - AMBAC Insured 3,240 Washington County Authority, Pennsylvania, Capital Funding No Opt. Call AAA 3,477,298 Revenue Bonds, Capital Projects and Equipment Acquisition Program, Series 1999, 6.150%, 12/01/29 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 7,770 Total Pennsylvania 8,335,486 - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 1.4% (0.9% OF TOTAL INVESTMENTS) 5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 5,199,250 Series 2005RR, 5.000%, 7/01/26 - XLCA Insured 4,000 Puerto Rico, General Obligation Bonds, Series 2000B, 7/10 at 100.00 AAA 4,271,960 5.625%, 7/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 9,000 Total Puerto Rico 9,471,210 - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 1.9% (1.3% OF TOTAL INVESTMENTS) 1,235 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA 1,278,003 Hospital Financing Revenue Bonds, Lifespan Obligated Group, Series 1996, 5.500%, 5/15/16 - MBIA Insured 11,015 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA 11,430,376 Hospital Financing Revenue Bonds, Lifespan Obligated Group, Series 1996, 5.500%, 5/15/16 (Pre-refunded 5/15/07) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 12,250 Total Rhode Island 12,708,379 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 4.2% (2.7% OF TOTAL INVESTMENTS) 10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 11,255,100 Purchase Revenue Bonds, Series 2002, 6.000%, 12/01/20 (Pre-refunded 12/01/12) 2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 2,636,150 Hospital Revenue Refunding and Improvement Bonds, Series 2003, 5.750%, 11/01/28 3,000 Myrtle Beach, South Carolina, Hospitality and Accommodation 6/14 at 100.00 AAA 3,071,040 Fee Revenue Bonds, Series 2004A, 5.000%, 6/01/36 - FGIC Insured 1,220 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 543,351 Revenue Bonds, Series 2004A-2, 0.000%, 1/01/23 - FGIC Insured 2,125 South Carolina Public Service Authority, Revenue Refunding 7/13 at 100.00 AAA 2,207,896 Bonds, Santee Cooper Electric System, Series 2003A, 5.000%, 1/01/21 - AMBAC Insured 7,500 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 8,014,950 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ 26,345 Total South Carolina 27,728,487 - ------------------------------------------------------------------------------------------------------------------------------------ 34 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 5.2% (3.5% OF TOTAL INVESTMENTS) $ 6,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa3 $ 6,348,420 Tennessee, Hospital Revenue Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.500%, 4/15/31 20,415 Knox County Health, Educational and Housing Facilities Board, 1/13 at 75.87 AAA 11,248,461 Tennessee, Hospital Revenue Refunding Bonds, Covenant Health, Series 2002A, 0.000%, 1/01/18 - FSA Insured 14,385 Metropolitan Government of Nashville-Davidson County Health 11/09 at 101.00 AAA 15,499,837 and Educational Facilities Board, Tennessee, Revenue Bonds, Ascension Health Credit Group, Series 1999A, 5.875%, 11/15/28 (Pre-refunded 11/15/09) - AMBAC Insured 1,750 Metropolitan Government of Nashville-Davidson County, 5/11 at 100.00 AA 1,801,870 Tennessee, Electric System Revenue Bonds, Series 2001A, 5.125%, 5/15/26 - ------------------------------------------------------------------------------------------------------------------------------------ 42,550 Total Tennessee 34,898,588 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 17.2% (11.3% OF TOTAL INVESTMENTS) 11,810 Brazos River Authority, Texas, Pollution Control Revenue 5/36 at 100.00 Baa2 12,523,678 Refunding Bonds, TXU Electric Company, Series 2001C, 5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax) 6,000 Brazos River Authority, Texas, Revenue Refunding Bonds, No Opt. Call AAA 6,286,620 Houston Lighting and Power Company, Series 1998, 5.050%, 11/01/18 - AMBAC Insured (Alternative Minimum Tax) 10,000 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 10,129,300 Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured 4,250 Ennis Independent School District, Ellis County, Texas, General 8/16 at 60.73 Aaa 1,502,205 Obligation Bonds, Series 2006, 0.000%, 8/15/26 8,400 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/09 at 101.00 BBB- 8,627,052 Revenue Bonds, Valero Energy Corporation, Series 1999, 5.700%, 4/01/32 (Alternative Minimum Tax) 5,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 5,087,900 Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 - MBIA Insured 1,540 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AAA 1,575,959 Obligation Bonds, Series 2003, 5.000%, 2/15/28 - AMBAC Insured 3,460 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AAA 3,673,447 Obligation Bonds, Series 2003, 5.000%, 2/15/28 (Pre-refunded 2/15/13) - AMBAC Insured 13,110 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 13,842,980 Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured Houston, Texas, Water Conveyance System Contract, Certificates of Participation, Series 1993A-J: 5,490 6.800%, 12/15/10 - AMBAC Insured No Opt. Call AAA 6,146,384 2,000 6.800%, 12/15/11 - AMBAC Insured No Opt. Call AAA 2,276,800 9,345 Leander Independent School District, Williamson and Travis 8/15 at 35.34 AAA 2,045,434 Counties, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/34 - FGIC Insured 16,305 Matagorda County Navigation District 1, Texas, Revenue 5/09 at 101.00 BBB- 16,670,231 Bonds, Reliant Energy Inc., Series 1999B, 5.950%, 5/01/30 (Alternative Minimum Tax) 3,425 Sabine River Authority, Texas, Pollution Control Revenue 5/22 at 100.00 Baa2 3,630,706 Refunding Bonds, TXU Electric Company, 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 4,954,035 System Revenue Refunding Bonds, Series 2002A, 6.000%, 10/01/21 4,000 Texas, General Obligation Bonds, Water Financial Assistance, 8/09 at 100.00 Aa1 4,180,080 State Participation Program, Series 1999C, 5.500%, 8/01/35 6,840 Travis County Health Facilities Development Corporation, 11/09 at 101.00 AAA 7,367,706 Texas, Revenue Bonds, Ascension Health Credit Group, Series 1999A, 5.875%, 11/15/24 (Pre-refunded 11/15/09) - AMBAC Insured 2,500 Trinity River Authority of Texas, Pollution Control Revenue 5/27 at 100.00 Baa2 2,508,850 Refunding Bonds, TXU Electric Company, Series 2001A, 5.000%, 5/01/27 (Mandatory put 11/01/06) (Alternative Minimum Tax) 245 Wood Glen Housing Finance Corporation, Texas, FHA-Insured 7/06 at 100.00 AAA 245,750 Section 8 Assisted Mortgage Revenue Bonds, Copperwood I Project, Series 1990A, 7.625%, 1/01/10 - MBIA Insured (ETM) 35 Nuveen Municipal Advantage Fund, Inc. (NMA) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 3,000 Wylie Independent School District, Taylor County, Texas, 8/15 at 74.57 AAA $ 1,395,150 General Obligation Bonds, Series 2005, 0.000%, 8/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ 121,420 Total Texas 114,670,267 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.4% (0.2% OF TOTAL INVESTMENTS) 730 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 761,383 Refunding Bonds, Series 1997B, 5.750%, 7/01/19 (Pre-refunded 7/01/07) - MBIA Insured 1,470 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 1,529,726 Refunding Bonds, Series 1997B, 5.750%, 7/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 2,200 Total Utah 2,291,109 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 14.4% (9.5% OF TOTAL INVESTMENTS) 8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 9,352,520 Consolidated System Revenue Bonds, Series 2001A, 5.600%, 1/01/36 - MBIA Insured (Alternative Minimum Tax) 5,665 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 5,820,788 Consolidated System Revenue Bonds, Series 2002B, 5.250%, 7/01/37 - AMBAC Insured (Alternative Minimum Tax) 10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 11,430,669 Consolidated System Revenue Refunding Bonds, Series 2001C, 5.650%, 7/01/32 - MBIA Insured (Alternative Minimum Tax) 10,730 Pierce County School District 320, Sumner, Washington, 12/10 at 100.00 Aaa 11,845,705 Unlimited Tax General Obligation Bonds, Series 2000, 6.250%, 12/01/17 (Pre-refunded 12/01/10) - FSA Insured 10,550 Port of Seattle, Washington, Limited Tax General Obligation 12/10 at 100.00 AAA 11,138,584 Bonds, Series 2000B, 5.750%, 12/01/25 (Alternative Minimum Tax) 5,315 Port of Seattle, Washington, Revenue Bonds, Series 2000B, No Opt. Call AAA 5,690,186 6.000%, 2/01/10 - MBIA Insured (Alternative Minimum Tax) 19,475 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 21,200,484 Terminal 18, Series 1999A, 6.000%, 9/01/29 (Pre-refunded 3/01/10) - MBIA Insured 5,000 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 5,347,500 Terminal 18, Series 1999B, 6.000%, 9/01/20 - MBIA Insured (Alternative Minimum Tax) 8,750 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 Aaa 9,048,025 Bonds, Nuclear Project 3, Series 1998A, 5.125%, 7/01/18 5,000 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AAA 5,236,850 Bonds, Providence Services, Series 1999, 5.375%, 12/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 90,025 Total Washington 96,111,311 - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS) 5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,092,350 Appalachian Power Company, Series 2003L, 5.500%, 10/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 7.7% (5.1% OF TOTAL INVESTMENTS) 7,320 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 7,729,774 Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 2,250 Green Bay, Wisconsin, Water System Revenue Bonds, 11/14 at 100.00 Aaa 2,319,952 Series 2004, 5.000%, 11/01/29 - FSA Insured 5,000 Madison, Wisconsin, Industrial Development Revenue 4/12 at 100.00 AA- 5,325,300 Refunding Bonds, Madison Gas and Electric Company Projects, Series 2002A, 5.875%, 10/01/34 (Alternative Minimum Tax) 3,000 Southeast Wisconsin Professional Baseball Park District, No Opt. Call AAA 3,343,590 Sales Tax Revenue Refunding Bonds, Series 1998A, 5.500%, 12/15/19 - MBIA Insured 36 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN (continued) Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Aurora Medical Group Inc., Series 1996: $ 10,000 5.600%, 11/15/16 - FSA Insured 5/06 at 102.00 AAA $ 10,213,200 20,000 5.750%, 11/15/25 - FSA Insured 5/06 at 102.00 AAA 20,429,599 1,835 Wisconsin Housing and Economic Development Authority, 3/10 at 100.00 AA 1,857,314 Home Ownership Revenue Bonds, Series 2000B, 5.750%, 3/01/22 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 49,405 Total Wisconsin 51,218,729 - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,104,745 Total Investments (cost $947,766,169) - 151.5% 1,010,621,834 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.2% 14,652,583 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (53.7)% (358,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 667,274,417 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 37 Nuveen Municipal Market Opportunity Fund, Inc. (NMO) Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM MUNICIPAL BONDS - 153.5% (99.8% OF TOTAL INVESTMENTS) ALABAMA - 0.7% (0.4% OF TOTAL INVESTMENTS) Henry County Water Authority, Alabama, Water Revenue Bonds, Series 2006: $ 1,935 5.000%, 1/01/36 - RAAI Insured 1/16 at 100.00 AA $ 1,950,383 2,485 5.000%, 1/01/41 - RAAI Insured 1/16 at 100.00 AA 2,500,556 - ------------------------------------------------------------------------------------------------------------------------------------ 4,420 Total Alabama 4,450,939 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.4% (0.2% OF TOTAL INVESTMENTS) Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series 2005A: 1,125 5.250%, 12/01/34 - FGIC Insured 12/14 at 100.00 AAA 1,179,214 1,275 5.250%, 12/01/41 - FGIC Insured 12/14 at 100.00 AAA 1,327,250 - ------------------------------------------------------------------------------------------------------------------------------------ 2,400 Total Alaska 2,506,464 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.5% (0.3% OF TOTAL INVESTMENTS) 3,000 Arizona State Transportation Board, Highway Revenue Bonds, 7/11 at 100.00 AAA 3,210,450 Series 2001, 5.250%, 7/01/20 (Pre-refunded 7/01/11) 140 Pima County Industrial Development Authority, Arizona, 5/07 at 105.85 AAA 143,758 FNMA/GNMA Single Family Mortgage Revenue Bonds, Series 1997A, 7.100%, 11/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 3,140 Total Arizona 3,354,208 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.8% (1.2% OF TOTAL INVESTMENTS) 5,000 Arkansas Development Finance Authority, Hospital Revenue 2/10 at 100.00 BBB (4) 5,528,300 Bonds, Washington Regional Medical Center, Series 2000, 7.000%, 2/01/15 (Pre-refunded 2/01/10) 3,480 Cabot School District 4, Lonoke County, Arkansas, General 8/08 at 100.00 Aaa 3,535,402 Obligation Refunding Bonds, Series 2003, 5.000%, 2/01/27 - AMBAC Insured 2,865 University of Arkansas, Fayetteville, Various Facilities 12/12 at 100.00 Aaa 3,132,219 Revenue Bonds, Series 2002, 5.500%, 12/01/20 (Pre-refunded 12/01/12) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 11,345 Total Arkansas 12,195,921 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 6.9% (4.5% OF TOTAL INVESTMENTS) 1,350 Antelope Valley Union High School District, Los Angeles No Opt. Call AAA 429,017 County, California, General Obligation Bonds, Series 2004B, 0.000%, 8/01/29 - MBIA Insured 7,800 California County Tobacco Securitization Agency, Tobacco 12/18 at 100.00 Baa3 6,079,164 Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A, 0.000%, 6/01/36 (Mandatory put 6/01/23) 1,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 1,115,380 Revenue Bonds, Series 2002A, 5.750%, 5/01/17 (Pre-refunded 5/01/12) 1,350 California Educational Facilities Authority, Revenue No Opt. Call Aaa 252,828 Refunding Bonds, Loyola Marymount University, Series 2001A, 0.000%, 10/01/39 - MBIA Insured 4,295 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 4,313,254 Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/33 10,445 Castaic Lake Water Agency, California, Revenue Certificates No Opt. Call AAA 3,319,317 of Participation, Water System Improvement Project, Series 1999, 0.000%, 8/01/29 - AMBAC Insured 8,365 Cupertino Union School District, Santa Clara County, 8/13 at 52.66 AAA 2,980,199 California, General Obligation Bonds, Series 2003B, 0.000%, 8/01/26 - FGIC Insured 5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 5,313,850 Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B, 5.000%, 6/01/38 (Pre-refunded 6/01/13) - AMBAC Insured 3,500 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 1,294,055 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 0.000%, 6/01/26 - FSA Insured 38 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 1,500 Lincoln Unified School District, Placer County, California, No Opt. Call AAA $ 550,395 Community Facilities District 1, Special Tax Bonds, Series 2005, 0.000%, 9/01/26 - AMBAC Insured 490 Los Angeles Department of Water and Power, California, 10/06 at 100.00 AA- (4) 490,372 Community Facilities District 1, Series 1993, 4.750%, 10/15/20 (ETM) 995 Los Angeles Department of Water and Power, California, 8/06 at 100.00 AA- (4) 996,254 Electric Plant Revenue Bonds, Series 1994, 5.375%, 2/15/34 (ETM) Orange County, California, Recovery Certificates of Participation, Series 1996A: 3,100 5.875%, 7/01/19 (Pre-refunded 7/01/06) - MBIA Insured 7/06 at 102.00 AAA 3,173,501 690 6.000%, 7/01/26 (Pre-refunded 7/01/06) - MBIA Insured 7/06 at 102.00 AAA 706,505 1,000 Pajaro Valley Unified School District, Santa Cruz County, No Opt. Call AAA 317,000 California, General Obligation Bonds, Series 2005B, 0.000%, 8/01/29 - FSA Insured 6,000 Placentia-Yorba Linda Unified School District, Orange County, No Opt. Call AAA 1,432,140 California, Certificates of Participation, Series 2006, 0.000%, 10/01/34 - FGIC Insured San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A: 5,000 0.000%, 1/15/17 - MBIA Insured 1/14 at 102.00 AAA 5,093,950 26,000 0.000%, 1/15/35 - MBIA Insured No Opt. Call AAA 6,174,740 5,000 San Jose-Evergreen Community College District, Santa Clara 9/15 at 100.00 AAA 1,563,550 County, California, General Obligation Bonds, Series 2005A, 0.000%, 9/01/28 - MBIA Insured 4,825 Santa Monica Community College District, Los Angeles County, No Opt. Call AAA 1,820,424 California, General Obligation Bonds, Series 2005C, 0.000%, 8/01/25 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 97,705 Total California 47,415,895 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.3% (3.5% OF TOTAL INVESTMENTS) 1,085 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 AAA 1,141,463 Bonds, Series 2006, 5.250%, 10/01/40 - XLCA Insured 3,000 Broomfield, Colorado, Master Facilities Lease Purchase 12/09 at 100.00 AAA 3,177,000 Agreement, Certificates of Participation, Series 1999, 5.750%, 12/01/24 - AMBAC Insured 6,285 Broomfield, Colorado, Sales and Use Tax Revenue Refunding 12/12 at 100.00 Aaa 6,770,453 and Improvement Bonds, Series 2002A, 5.500%, 12/01/22 - AMBAC Insured 11,465 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 12,294,263 Refunding Bonds, Series 2000A, 6.000%, 11/15/18 - AMBAC Insured (Alternative Minimum Tax) 20,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 5,305,200 Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) - MBIA Insured E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B: 3,500 0.000%, 9/01/27 - MBIA Insured 9/20 at 67.94 AAA 1,153,145 13,300 0.000%, 9/01/31 - MBIA Insured 9/20 at 53.77 AAA 3,458,798 6,250 0.000%, 9/01/32 - MBIA Insured 9/20 at 50.83 AAA 1,536,250 8,000 0.000%, 3/01/36 - MBIA Insured No Opt. Call AAA 1,607,440 - ------------------------------------------------------------------------------------------------------------------------------------ 72,885 Total Colorado 36,444,012 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.5% (0.3% OF TOTAL INVESTMENTS) 3,265 Washington Convention Center Authority, District of Columbia, 10/08 at 100.00 AAA 3,253,736 Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 4.750%, 10/01/28 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 4.6% (3.0% OF TOTAL INVESTMENTS) 15,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA 16,082,400 Series 2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) - FGIC Insured 14,330 Fulton County Facilities Corporation, Georgia, Certificates 11/10 at 101.00 AAA 15,321,206 of Participation, Public Purpose Project, Series 1999, 5.500%, 11/01/18 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 29,330 Total Georgia 31,403,606 - ------------------------------------------------------------------------------------------------------------------------------------ 39 Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 11.6% (7.5% OF TOTAL INVESTMENTS) $ 600 Bolingbrook, Illinois, General Obligation Refunding Bonds, No Opt. Call AAA $ 169,350 Series 2002B, 0.000%, 1/01/32 - FGIC Insured 4,600 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 2,299,080 Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/20 - FGIC Insured 4,000 Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 4,095,360 5.000%, 1/01/33 - AMBAC Insured 2,300 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, No Opt. Call AAA 2,488,922 Series 1993, 5.375%, 1/01/14 - AMBAC Insured 5,250 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1998B, 1/09 at 101.00 AAA 5,344,815 5.000%, 1/01/28 - MBIA Insured 5,210 Illinois Housing Development Authority, Section 8 Elderly 7/06 at 100.00 A- 5,273,822 Housing Revenue Bonds, Garden House of River Oaks West Development, Series 1992A, 6.875%, 1/01/20 38,645 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/10 at 100.00 AAA 40,701,297 Series 2000, 5.500%, 4/01/25 - MBIA Insured Lake and McHenry Counties Community Unit School District 118, Wauconda, Illinois, General Obligation Bonds, Series 2005B: 10,230 0.000%, 1/01/22 - FSA Insured 1/15 at 70.63 Aaa 4,645,648 6,780 0.000%, 1/01/24 - FSA Insured 1/15 at 63.44 Aaa 2,774,308 1,975 Lake County Community High School District 127, Grayslake, No Opt. Call AAA 2,538,309 Illinois, General Obligation Bonds, Series 2002A, 9.000%, 2/01/13 - FGIC Insured Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A: 3,250 5.600%, 6/15/25 - MBIA Insured 6/22 at 101.00 AAA 1,986,628 3,270 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 3,355,576 2,130 0.000%, 6/15/37 - MBIA Insured No Opt. Call AAA 458,525 11,215 0.000%, 12/15/38 - MBIA Insured No Opt. Call AAA 2,235,598 3,650 0.000%, 6/15/39 - MBIA Insured No Opt. Call AAA 706,640 - ------------------------------------------------------------------------------------------------------------------------------------ 103,105 Total Illinois 79,073,878 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.1% (0.7% OF TOTAL INVESTMENTS) 4,695 Indiana Educational Facilities Authority, Revenue Bonds, 2/11 at 100.00 AAA 4,977,874 Butler University, Series 2001, 5.500%, 2/01/26 - MBIA Insured 5,113 Indianapolis, Indiana, Special Facility Revenue Bonds, United 5/06 at 102.00 N/R 511,283 Airlines Inc., Indianapolis Maintenance Center Project, Series 1995A, 6.500%, 11/15/31 (Alternative Minimum Tax) (7) 2,000 Petersburg, Indiana, Pollution Control Revenue Refunding 8/11 at 102.00 Baa2 2,096,440 Bonds, Indianapolis Power and Light Company, Series 1991, 5.750%, 8/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ 11,808 Total Indiana 7,585,597 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.6% (0.4% OF TOTAL INVESTMENTS) 4,215 Iowa Finance Authority, Solid Waste Disposal Revenue Bonds, 6/27 at 100.00 N/R 4,262,166 IPSCO Project, Series 1997, 6.000%, 6/01/27 (Mandatory put 6/01/07) (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,500 Kansas Development Finance Authority, Water Pollution Control 11/12 at 100.00 AAA 2,700,075 Revolving Fund Leveraged Bonds, Series 2002-II, 5.500%, 11/01/21 500 Salina, Kansas, Hospital Revenue Bonds, Salina Regional 4/16 at 100.00 A1 479,765 Medical Center, Series 2006, 4.625%, 10/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 3,000 Total Kansas 3,179,840 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.6% (1.1% OF TOTAL INVESTMENTS) Jefferson County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2000A: 3,045 5.250%, 7/01/17 - FSA Insured 1/10 at 101.00 AAA 3,199,503 7,490 5.250%, 7/01/20 - FSA Insured 1/10 at 101.00 AAA 7,870,043 - ------------------------------------------------------------------------------------------------------------------------------------ 10,535 Total Kentucky 11,069,546 - ------------------------------------------------------------------------------------------------------------------------------------ 40 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 1.6% (1.1% OF TOTAL INVESTMENTS) $ 7,415 Louisiana Local Government Environmental Facilities and 12/12 at 100.00 AAA $ 7,545,801 Community Development Authority, Revenue Bonds, Baton Rouge Community College Facilities Corporation, Series 2002, 5.000%, 12/01/32 - MBIA Insured 3,350 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 3,494,419 Rouge General Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 10,765 Total Louisiana 11,040,220 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.6% (1.0% OF TOTAL INVESTMENTS) Frederick County, Maryland, General Obligation Public Facilities Bonds, Series 2002: 3,710 5.000%, 11/01/18 (Pre-refunded 11/01/12) 11/12 at 101.00 AA (4) 3,978,493 3,890 5.000%, 11/01/19 (Pre-refunded 11/01/12) 11/12 at 101.00 AA (4) 4,171,519 2,500 Maryland Department of Transportation, Consolidated No Opt. Call AA 2,769,025 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 10,100 Total Maryland 10,919,037 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 4.6% (3.0% OF TOTAL INVESTMENTS) 1,100 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 1,149,313 Series 2000A, 5.250%, 7/01/30 4,150 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA 4,389,123 Bonds, Series 2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10) 8,315 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 8,426,088 System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA Insured 10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AAA 10,830,200 Bonds, Series 2000A, 5.750%, 8/01/39 (Pre-refunded 8/01/10) - FGIC Insured 6,195 University of Massachusetts Building Authority, Facilities 11/10 at 100.00 AAA 6,545,823 Revenue Bonds, Senior Series 2000A, 5.125%, 11/01/25 (Pre-refunded 11/01/10) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 29,760 Total Massachusetts 31,340,547 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.4% (0.2% OF TOTAL INVESTMENTS) 2,090 Grand Rapids Building Authority, Kent County, Michigan, 8/10 at 100.00 AAA 2,201,606 Limited Tax General Obligation Bonds, Series 2000, 5.375%, 8/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 8.0% (5.2% OF TOTAL INVESTMENTS) 930 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A 996,867 Healthcare System Revenue Bonds, Fairview Hospital and Healthcare Services, Series 2000A, 6.375%, 11/15/29 29,070 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A (4) 32,348,804 Healthcare System Revenue Bonds, Fairview Hospital and Healthcare Services, Series 2000A, 6.375%, 11/15/29 (Pre-refunded 11/15/10) 2,680 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 2,723,523 Mortgage Bonds, Series 1998H-2, 6.050%, 7/01/31 (Alternative Minimum Tax) 13,675 Minnesota, General Obligation Bonds, Series 2000, 11/10 at 100.00 AAA 14,419,193 5.125%, 11/01/16 3,225 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 103.00 AAA 3,939,434 Sales Tax Revenue Refunding Bonds, Civic Center Project, Series 1996, 7.100%, 11/01/23 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 49,580 Total Minnesota 54,427,821 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.0% (0.7% OF TOTAL INVESTMENTS) 5,900 Mississippi Business Finance Corporation, Pollution Control 10/06 at 100.00 BBB- 5,948,439 Revenue Refunding Bonds, System Energy Resources Inc. Project, Series 1998, 5.875%, 4/01/22 1,100 Mississippi Home Corporation, GNMA Mortgage-Backed 7/07 at 105.00 Aaa 1,122,594 Securities Program Single Family Mortgage Revenue Bonds, Series 1997D-5, 6.750%, 7/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 7,000 Total Mississippi 7,071,033 - ------------------------------------------------------------------------------------------------------------------------------------ 41 Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.6% (0.4% OF TOTAL INVESTMENTS) Kansas City Municipal Assistance Corporation, Missouri, Leasehold Revenue Bonds, Series 2004B-1: $ 7,000 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AAA $ 2,480,730 5,000 0.000%, 4/15/31 - AMBAC Insured No Opt. Call AAA 1,448,800 - ------------------------------------------------------------------------------------------------------------------------------------ 12,000 Total Missouri 3,929,530 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 6.0% (3.9% OF TOTAL INVESTMENTS) 9,555 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 10,079,856 Southern Nevada Water Authority Loan, Series 2001, 5.300%, 6/01/20 - FGIC Insured Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: 6,125 0.000%, 1/01/17 - AMBAC Insured No Opt. Call AAA 3,699,194 8,500 0.000%, 1/01/26 - AMBAC Insured No Opt. Call AAA 3,215,040 5,315 0.000%, 1/01/27 - AMBAC Insured No Opt. Call AAA 1,901,122 21,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 21,765,660 2,135 Reno, Nevada, Capital Improvement Revenue Bonds, 6/15 at 33.61 AAA 414,211 Series 2005B, 0.000%, 6/01/37 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 52,630 Total Nevada 41,075,083 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 4.8% (3.1% OF TOTAL INVESTMENTS) 170 Camden County Pollution Control Financing Authority, 6/06 at 100.00 Baa3 173,012 New Jersey, Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991D, 7.250%, 12/01/10 18,000 New Jersey Transportation Trust Fund Authority, Transportation 6/10 at 100.00 AAA 19,391,220 System Bonds, Series 2000B, 5.750%, 6/15/17 (Pre-refunded 6/15/10) 5,000 New Jersey Turnpike Authority, Revenue Bonds, Growth and 1/17 at 100.00 AAA 3,283,850 Income Securities, Series 2004B, 0.000%, 1/01/35 - AMBAC Insured 3,000 Rahway Valley Sewerage Authority, New Jersey, Sewer No Opt. Call Aaa 1,159,680 Revenue Bonds, Series 2005A, 0.000%, 9/01/25 - MBIA Insured 3,165 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 3,334,549 Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/42 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 2,100 6.375%, 6/01/32 6/13 at 100.00 BBB 2,276,379 2,925 6.750%, 6/01/39 6/13 at 100.00 BBB 3,248,476 - ------------------------------------------------------------------------------------------------------------------------------------ 34,360 Total New Jersey 32,867,166 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.8% (1.2% OF TOTAL INVESTMENTS) 5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 AA- (4) 6,419,145 Bonds, Presbyterian Healthcare Services, Series 2001A, 5.500%, 8/01/21 (Pre-refunded 8/01/11) 5,675 University of New Mexico, Revenue Refunding Bonds, No Opt. Call AA 6,219,630 Bonds, Presbyterian Healthcare - ------------------------------------------------------------------------------------------------------------------------------------ 11,600 Total New Mexico 12,638,775 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 16.3% (10.6% OF TOTAL INVESTMENTS) 245 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AA- 253,122 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 2/15/27 Dormitory Authority of the State of New York, Improvement Revenue Bonds, Mental Health Services Facilities, Series 1997A: 465 5.750%, 2/15/27 (Pre-refunded 2/15/07) 2/07 at 102.00 AA- (4) 481,684 19,290 5.750%, 2/15/27 (Pre-refunded 2/15/07) 2/07 at 102.00 AA- (4) 19,982,125 3,000 Long Island Power Authority, New York, Electric System 6/16 at 100.00 A- 3,072,750 General Revenue Bonds, Series 2006B, 5.000%, 12/01/35 6,750 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 BBB- (4) 7,355,948 Tobacco Settlement Asset-Backed Bonds, Series 1999A, 6.400%, 7/15/33 (Pre-refunded 7/15/09) 17,870 New York City Transitional Finance Authority, New York, 8/09 at 101.00 AAA 19,157,355 Future Tax Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24 (Pre-refunded 8/15/09) 630 New York City, New York, General Obligation Bonds, 8/07 at 101.00 A+ 652,926 Fiscal Series 1997H, 6.125%, 8/01/25 42 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 9,370 New York City, New York, General Obligation Bonds, 8/07 at 101.00 A+ (4) $ 9,740,677 Fiscal Series 1997H, 6.125%, 8/01/25 (Pre-refunded 8/01/07) New York City, New York, General Obligation Bonds, Fiscal Series 2002G: 1,000 5.000%, 8/01/17 8/12 at 100.00 A+ 1,032,720 10,500 5.750%, 8/01/18 8/12 at 100.00 A+ 11,368,770 5,000 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 A+ 5,453,000 Series 2003A, 5.750%, 8/01/16 7,805 New York State Power Authority, General Revenue Bonds, 11/12 at 100.00 Aa2 8,061,082 Series 2002A, 5.000%, 11/15/21 5,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 5,685,012 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16 10,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 10,471,500 Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 8,000 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 AAA 8,682,080 Series 1999-1, 6.250%, 7/15/34 (Mandatory put 7/15/24) (Pre-refunded 7/15/09) - ------------------------------------------------------------------------------------------------------------------------------------ 105,325 Total New York 111,450,751 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.4% (0.9% OF TOTAL INVESTMENTS) 1,900 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 1,918,164 Healthcare System Revenue Bonds, DBA Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45 7,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 7,930,575 Revenue Bonds, Series 2003A, 5.250%, 1/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 9,400 Total North Carolina 9,848,739 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 4.3% (2.8% OF TOTAL INVESTMENTS) 22,905 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 24,383,746 Obligated Group, Series 2000A, 5.625%, 6/01/31 - FSA Insured North Dakota Water Commission, Water Development and Management Program Bonds, Series 2000A: 2,230 5.700%, 8/01/18 (Pre-refunded 8/01/10) - MBIA Insured 8/10 at 100.00 AAA 2,399,993 2,450 5.750%, 8/01/19 (Pre-refunded 8/01/10) - MBIA Insured 8/10 at 100.00 AAA 2,641,541 - ------------------------------------------------------------------------------------------------------------------------------------ 27,585 Total North Dakota 29,425,280 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 2.6% (1.7% OF TOTAL INVESTMENTS) 16,140 Montgomery County, Ohio, Hospital Facilities Revenue Bonds, No Opt. Call A 17,819,044 Kettering Medical Center, Series 1999, 6.300%, 4/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.0% (0.0% OF TOTAL INVESTMENTS) 300 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 6/09 at 100.00 B- 300,072 Bonds, American Airlines Inc., Series 2000B, 6.000%, 6/01/35 (Mandatory put 12/01/08) (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 2.4% (1.6% OF TOTAL INVESTMENTS) 5,000 Oregon Health Sciences University, Revenue Bonds, 1/13 at 100.00 AAA 5,293,600 Series 2002A, 5.250%, 7/01/22 - MBIA Insured Portland, Oregon, Water System Revenue Bonds, Series 2000A: 6,780 5.375%, 8/01/18 8/10 at 100.00 Aa1 7,144,764 3,880 5.500%, 8/01/20 8/10 at 100.00 Aa1 4,118,504 - ------------------------------------------------------------------------------------------------------------------------------------ 15,660 Total Oregon 16,556,868 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 3.9% (2.5% OF TOTAL INVESTMENTS) 5,000 Delaware County Industrial Development Authority, 1/08 at 102.00 BB+ 5,137,100 Pennsylvania, Resource Recovery Revenue Refunding Bonds, Series 1997A, 6.200%, 7/01/19 5,000 Pennsylvania Higher Education Assistance Agency, Capital 12/10 at 100.00 AAA 5,448,000 Acquisition Revenue Bonds, Series 2000, 5.875%, 12/15/30 (Pre-refunded 12/15/10) - MBIA Insured 15,050 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA 15,923,803 5.000%, 9/15/14 - ------------------------------------------------------------------------------------------------------------------------------------ 25,050 Total Pennsylvania 26,508,903 - ------------------------------------------------------------------------------------------------------------------------------------ 43 Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 2.9% (1.9% OF TOTAL INVESTMENTS) $ 12,500 Puerto Rico Housing Finance Authority, Capital Fund Program No Opt. Call AA $ 12,268,500 Revenue Bonds, Series 2003, 4.500%, 12/01/23 7,640 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 7,789,744 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ 20,140 Total Puerto Rico 20,058,244 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 7.5% (4.9% OF TOTAL INVESTMENTS) 24,730 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 27,137,712 Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22 (Pre-refunded 12/01/12) 21,570 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 6,638,383 Revenue Bonds, Series 2004A-2, 0.000%, 1/01/30 - AMBAC Insured 3,560 South Carolina Public Service Authority, Revenue Refunding 7/13 at 100.00 AAA 3,702,222 Bonds, Santee Cooper Electric System, Series 2003A, 5.000%, 1/01/20 - AMBAC Insured 1,045 Three Rivers Solid Waste Authority, South Carolina, Solid 1/07 at 102.00 AAA 1,075,201 Waste Disposal Facilities Revenue Bonds, Series 1997, 5.300%, 1/01/27 - MBIA Insured 11,665 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 12,465,919 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ 62,570 Total South Carolina 51,019,437 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.7% (0.5% OF TOTAL INVESTMENTS) 5,000 Knox County Health, Educational and Housing Facilities Board, 7/13 at 100.00 AA 5,096,250 Tennessee, Hospital Revenue Bonds, East Tennessee Children's Hospital, Series 2003A, 5.000%, 7/01/23 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 25.5% (16.6% OF TOTAL INVESTMENTS) 5,000 Alliance Airport Authority, Texas, Special Facilities Revenue 6/06 at 100.00 CCC 4,849,250 Bonds, American Airlines Inc., Series 1990, 7.500%, 12/01/29 (Alternative Minimum Tax) 12,250 Austin, Texas, Subordinate Lien Hotel Occupancy Tax Revenue 11/09 at 100.00 AAA 13,075,773 Refunding Bonds, Series 1999, 5.800%, 11/15/29 (Pre-refunded 11/15/09) - AMBAC Insured 11,255 Brazos River Authority, Texas, Pollution Control Revenue 5/36 at 100.00 Baa2 11,935,140 Refunding Bonds, TXU Electric Company, Series 2001C, 5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax) Brownsville Independent School District, Cameron County, Texas, General Obligation Bonds, Series 1999: 5,015 5.625%, 8/15/25 (Pre-refunded 8/15/09) 8/09 at 100.00 AAA 5,304,566 8,825 5.625%, 8/15/29 (Pre-refunded 8/15/09) 8/09 at 100.00 AAA 9,334,556 1,000 Cedar Hill Independent School District, Dallas County, Texas, No Opt. Call AAA 272,190 General Obligation Bonds, Series 2002, 0.000%, 8/15/32 - FGIC Insured 15,000 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 15,193,950 Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured Clear Creek Independent School District, Galveston and Harris Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds, Series 2000: 585 5.400%, 2/15/18 2/10 at 100.00 AAA 613,952 340 5.650%, 2/15/19 2/10 at 100.00 AAA 360,407 235 5.700%, 2/15/20 2/10 at 100.00 AAA 249,619 270 5.700%, 2/15/21 2/10 at 100.00 AAA 286,238 Clear Creek Independent School District, Galveston and Harris Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds, Series 2000: 16,740 5.400%, 2/15/18 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 17,723,308 9,660 5.650%, 2/15/19 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 10,312,243 6,645 5.700%, 2/15/20 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 7,105,299 7,750 5.700%, 2/15/21 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 8,286,843 2,500 Comal Independent School District, Comal, Bexar, Guadalupe, No Opt. Call Aaa 1,112,575 Hays, and Kendall Counties, Texas, General Obligation Bonds, Series 2005A, 0.000%, 2/01/23 6,000 Dallas-Ft. Worth International Airport Facility Improvement 11/09 at 101.00 CCC 5,034,780 Corporation, Texas, Revenue Bonds, American Airlines Inc., Series 1999, 6.375%, 5/01/35 (Alternative Minimum Tax) 44 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 11,750 Dallas-Ft. Worth International Airport Facility Improvement 11/07 at 100.00 CCC $ 11,563,410 Corporation, Texas, Revenue Refunding Bonds, American Airlines Inc., Series 2000C, 6.150%, 5/01/29 (Mandatory put 11/01/07) (Alternative Minimum Tax) Ennis Independent School District, Ellis County, Texas, General Obligation Bonds, Series 2006: 3,950 0.000%, 8/15/30 8/16 at 49.21 Aaa 1,132,070 4,000 0.000%, 8/15/31 8/16 at 46.64 Aaa 1,060,320 1,050 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 285,170 Bonds, Convention and Entertainment Project, Series 2001B, 0.000%, 9/01/32 - AMBAC Insured 1,250 Houston, Texas, Junior Lien Water and Sewerage System 12/11 at 100.00 AAA 1,290,213 Revenue Refunding Bonds, Series 2001A, 5.000%, 12/01/20 - FSA Insured 21,500 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 22,702,065 Series 2000B, 5.500%, 7/01/30 - FSA Insured 9,350 Leander Independent School District, Williamson and Travis 8/15 at 39.49 AAA 2,287,104 Counties, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/32 - FGIC Insured 15,000 San Antonio Independent School District, Bexar County, Texas, 8/09 at 100.00 AAA 15,945,900 General Obligation Bonds, Series 1999, 5.800%, 8/15/29 (Pre-refunded 8/15/09) 5,000 White Settlement Independent School District, Tarrant County, 8/15 at 36.81 AAA 1,139,450 Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/34 3,970 Wichita Falls, Wichita County, Texas, Priority Lien Water and 8/11 at 100.00 AAA 4,102,122 Series 2001, 5.000%, 8/01/21 - AMBAC Insured Wylie Independent School District, Taylor County, Texas, General Obligation Bonds, Series 2005: 3,000 0.000%, 8/15/23 8/15 at 67.10 AAA 1,255,470 2,000 0.000%, 8/15/24 8/15 at 63.56 AAA 793,040 - ------------------------------------------------------------------------------------------------------------------------------------ 190,890 Total Texas 174,607,023 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 17.9% (11.6% OF TOTAL INVESTMENTS) 5,500 Clark County Public Utility District 1, Washington, Generating 1/11 at 100.00 AAA 5,694,920 System Revenue Refunding Bonds, Series 2000, 5.125%, 1/01/20 - FSA Insured 2,755 Cowlitz County, Washington, Special Sewerage Revenue No Opt. Call AAA 3,033,613 Refunding Bonds, CSOB Wastewater Treatment Facilities, Series 2002, 5.500%, 11/01/16 - FGIC Insured 10,000 Energy Northwest, Washington, Electric Revenue Refunding 7/11 at 101.00 AAA 10,753,900 Bonds, Nuclear Project 3, Series 2001A, 5.500%, 7/01/17 - FSA Insured 2,500 King County, Washington, Sewer Revenue Bonds, Series 2001, 1/12 at 100.00 AAA 2,579,650 5.000%, 1/01/23 - FGIC Insured 33,490 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100.00 AAA 35,545,280 5.625%, 2/01/30 - MBIA Insured 6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 AAA 7,317,864 5.625%, 2/01/24 - MBIA Insured (Alternative Minimum Tax) Seattle, Washington, General Obligation Refunding and Improvement Bonds, Series 2002: 6,165 4.400%, 12/01/19 12/12 at 100.00 AAA 6,167,898 6,445 4.500%, 12/01/20 12/12 at 100.00 AAA 6,472,133 3,000 Spokane County School District 81, Spokane, Washington, 6/15 at 100.00 AAA 2,701,770 General Obligation Bonds, Series 2005, 0.000%, 6/01/24 - MBIA Insured 6,630 Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 7,247,651 Bonds, Series 2001A, 5.750%, 1/01/17 (Pre-refunded 1/01/11) - FSA Insured 3,520 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aaa 3,719,021 Bonds, Children's Hospital and Regional Medical Center, Series 2001, 5.000%, 10/01/21 (Pre-refunded 10/01/11) - AMBAC Insured 7,890 Washington State Higher Education Facilities Authority, 11/09 at 101.00 AA 8,408,215 Revenue Bonds, Pacific Lutheran University, Series 1999, 5.950%, 11/01/29 - RAAI Insured 12,185 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 13,253,015 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 9,000 Washington, Motor Vehicle Fuel Tax General Obligation Bonds, 1/12 at 100.00 AAA 9,302,310 Series 2002C, 5.000%, 1/01/21 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 116,030 Total Washington 122,197,240 - ------------------------------------------------------------------------------------------------------------------------------------ 45 Nuveen Municipal Market Opportunity Fund, Inc. (NMO) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.1% (0.7% OF TOTAL INVESTMENTS) $ 4,180 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB $ 4,413,996 Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 1,755 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 1,671,550 Revenue Bonds, Divine Savior Healthcare, Series 2006, 4.750%, 5/01/25 1,250 Wisconsin Health and Educational Facilities Authority, Revenue 3/08 at 101.00 N/R 1,246,638 Bonds, United Lutheran Program for the Aging Inc., Series 1998, 5.700%, 3/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ 7,185 Total Wisconsin 7,332,184 - ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,800 Jackson National Rural Utilities Cooperative Financing 5/07 at 101.00 A 2,862,160 Corporation, Wyoming, Guaranteed Gas Supply Revenue Bonds, Lower Valley Power and Light Inc., Series 1997B, 5.875%, 5/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,181,113 Total Long-Term Municipal Bonds (cost $991,174,819) 1,048,788,821 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM MUNICIPAL BONDS - 0.1% (0.1% OF TOTAL INVESTMENTS) 1,000 New Jersey Economic Development Authority, Dock Facility No Opt. Call VMIG-1 1,000,000 Revenue Refunding Bonds, Bayonne/IMTT Project, Variable Rate Demand Obligations, Series 1993C, 3.770%, 12/01/27 (5) - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,000 Total Short-Term Municipal Bonds (cost $1,000,000) 1,000,000 =============----------------------------------------------------------------------------------------------------------------------- SHARES DESCRIPTION (1) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - 0.1% (0.1% OF TOTAL INVESTMENTS) AIRLINES - 0.1% (0.1% OF TOTAL INVESTMENTS) 14,752 UAL Corporation (6) (7) (8) 531,220 - ------------------------------------------------------------------------------------------------------------------------------------ Total Common Stocks (cost $599,673) 531,220 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $992,774,492) - 153.7% 1,050,320,041 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 13,073,486 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.6)% (380,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 683,393,527 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. (6) Non-income producing. (7) On December 9, 2002, UAL Corporation ("UAL"), the holding company of United Air Lines, Inc. filed for federal bankruptcy protection. The Adviser determined that it was likely that United would not remain current on their interest payment obligations with respect to the bonds previously held and thus the Fund had stopped accruing interest on its UAL bonds. (8) On February 1, 2006, UAL emerged from federal bankruptcy with the acceptance of its reorganization plan by the bankruptcy court. Under the settle agreement established to meet UAL's unsecured bond obligations, the bondholders, including the Fund, received a distribution of UAL common stock during the subsequent month, and the bankruptcy court dismissed all unsecured claims of bondholders, including those of the Fund. Subsequent to fiscal year-end, the Fund liquidated its UAL common stock holdings. N/R Not rated. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 46 Nuveen Dividend Advantage Municipal Fund (NAD) Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 0.3% (0.2% OF TOTAL INVESTMENTS) $ 1,500 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A- $ 1,554,000 Bonds, Series 2000, 5.750%, 12/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.1% (0.1% OF TOTAL INVESTMENTS) 750 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AAA 786,143 Bonds, Series 2005A, 5.250%, 12/01/34 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 2.7% (1.8% OF TOTAL INVESTMENTS) 1,535 Alameda Corridor Transportation Authority, California, No Opt. Call AAA 318,559 Senior Lien Revenue Bonds, Series 1999A, 0.000%, 10/01/37 - MBIA Insured 200 California, General Obligation Bonds, Series 1997, 10/07 at 101.00 AAA 204,944 5.000%, 10/01/18 - AMBAC Insured California, General Obligation Bonds, Series 1997: 2,195 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 2,258,589 210 5.000%, 10/01/18 (Pre-refunded 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 216,084 5,000 California, General Obligation Bonds, Series 2005, 5.000%, 3/16 at 100.00 A 5,102,950 3/01/31 3,500 Golden State Tobacco Securitization Corporation, California, No Opt. Call AAA 1,294,055 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 0.000%, 6/01/26 - FSA Insured 2,475 Los Angeles Department of Water and Power, California, 7/06 at 100.00 AA- 2,478,811 Power System Revenue Bonds, Series 2001A-3, 5.375%, 7/01/20 17,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 4,037,330 County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/35 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 32,115 Total California 15,911,322 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 3.7% (2.5% OF TOTAL INVESTMENTS) 3,205 Denver City and County, Colorado, Airport Special Facilities 1/09 at 101.00 AAA 3,385,506 Revenue Bonds, Rental Car Projects, Series 1999A, 6.000%, 1/01/12 - MBIA Insured (Alternative Minimum Tax) 10,250 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 10,439,728 Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured 2,950 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,127,118 Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/22 (Pre-refunded 12/01/13) - XLCA Insured 1,475 Denver, Colorado, FHA-Insured Multifamily Housing Revenue 10/07 at 102.00 AAA 1,507,273 Bonds, Boston Lofts Project, Series 1997A, 5.750%, 10/01/27 (Alternative Minimum Tax) 8,515 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 3,300,840 Bonds, Series 1997B, 0.000%, 9/01/25 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 26,395 Total Colorado 21,760,465 - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,700 Connecticut Development Authority, Health Facilities 8/06 at 100.00 N/R 2,708,316 Revenue Refunding Bonds, Alzheimer's Resource Center of Connecticut Inc., Series 1994A, 7.125%, 8/15/14 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.9% (0.6% OF TOTAL INVESTMENTS) 5,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 5,196,600 Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 5.250%, 10/01/13 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 8.0% (5.4% OF TOTAL INVESTMENTS) 1,630 Florida Housing Finance Agency, Housing Revenue Bonds, 12/07 at 102.00 AAA 1,671,810 Mar Lago Village Apartments, Series 1997F, 5.800%, 12/01/17 - AMBAC Insured (Alternative Minimum Tax) 15,000 Florida State Board of Education, Public Education Capital 6/15 at 101.00 AAA 14,561,100 Outlay Bonds, Series 2005E, 4.500%, 6/01/35 47 Nuveen Dividend Advantage Municipal Fund (NAD) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 14,350 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 $ 15,213,009 Refunding Bonds, Issue 2, Series 2002-17, 5.250%, 10/01/13 13,625 Martin County Industrial Development Authority, Florida, 6/06 at 101.00 BB+ 13,822,835 Industrial Development Revenue Bonds, Indiantown Cogeneration LP, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax) 2,405 Venice, Florida, Revenue Bonds, Bon Secours System, Revenue 8/06 at 102.00 AAA 2,465,895 Bonds, Series 1996, 5.600%, 8/15/16 (Pre-refunded 8/15/06) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 47,010 Total Florida 47,734,649 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.4% (0.9% OF TOTAL INVESTMENTS) 4,000 Forsyth County Water and Sewerage Authority, Georgia, Revenue 4/10 at 101.00 AA (4) 4,354,720 Bonds, Series 2000, 6.000%, 4/01/25 (Pre-refunded 4/01/10) 880 Gainesville and Hall County Hospital Authority, Georgia, 5/09 at 101.00 AAA 922,715 Revenue Anticipation Certificates, Northeast Georgia Health Services Inc., Series 1999, 5.500%, 5/15/29 - MBIA Insured 2,620 Gainesville and Hall County Hospital Authority, Georgia, 5/09 at 101.00 AAA 2,772,667 Revenue Anticipation Certificates, Northeast Georgia Health Services Inc., Series 1999, 5.500%, 5/15/29 (Pre-refunded 5/15/09) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 7,500 Total Georgia 8,050,102 - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS) 330 Idaho Housing and Finance Association, Single Family 7/09 at 101.00 Aa2 331,155 Mortgage Bonds, Series 1999E, 5.750%, 1/01/21 (Alternative Minimum Tax) 400 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa2 415,672 Bonds, Series 2000D, 6.350%, 7/01/22 (Alternative Minimum Tax) 555 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 557,015 Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,285 Total Idaho 1,303,842 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 36.7% (24.8% OF TOTAL INVESTMENTS) 3,265 Channahon, Illinois, Revenue Refunding Bonds, Morris Hospital, 12/09 at 102.00 BBB+ 3,374,475 Series 1999, 5.750%, 12/01/12 7,250 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 8,263,913 Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 5.500%, 12/01/26 - FGIC Insured Chicago, Illinois, FHA/GNMA Multifamily Housing Revenue Bonds, Archer Court Apartments, Series 1999A: 850 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101.00 AAA 877,736 1,210 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,234,938 1,925 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101.00 AAA 1,957,821 22,750 Chicago, Illinois, General Obligation Refunding Bonds, No Opt. Call AAA 25,611,267 Emergency Telephone System, Series 1999, 5.500%, 1/01/23 - FGIC Insured 2,620 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, No Opt. Call AAA 2,835,207 Series 1993, 5.375%, 1/01/14 - AMBAC Insured 3,340 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 3,439,231 O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 - FGIC Insured 1,145 Chicago, Illinois, Wastewater Transmission Revenue Bonds, 1/08 at 100.00 AAA 1,163,183 Series 1995, 5.125%, 1/01/25 - FGIC Insured 190 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 200,803 Illinois, General Obligation Bonds, Series 2003B, 5.250%, 11/01/20 - FSA Insured 810 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 873,042 Illinois, General Obligation Bonds, Series 2003B, 5.250%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 500 Hoffman Estates Park District, Cook County, Illinois, General 12/09 at 102.00 AAA 529,885 Obligation Bonds, Series 1999, 5.375%, 12/01/29 - MBIA Insured 3,935 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 2,681,584 Program Revenue Bonds, Lake County School District 116 - Round Lake, Series 1999, 0.000%, 1/01/15 - MBIA Insured 48 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 24,835 Illinois Development Finance Authority, Revenue Bonds, 9/07 at 102.00 AAA $ 25,846,525 Presbyterian Home of Lake Forest, Series 1999, 5.625%, 9/01/31 - FSA Insured 5,570 Illinois Finance Authority, Revenue Bonds, University of 7/14 at 100.00 Aa1 5,710,475 Chicago, Series 2004A, 5.000%, 7/01/34 17,280 Illinois Health Facilities Authority, Converted Adjustable 10/07 at 102.00 AAA 18,150,394 Rate Revenue Bonds, Highland Park Hospital, Series 1991A, 6.000%, 10/01/15 (Pre-refunded 10/01/07) - FGIC Insured 9,900 Illinois Health Facilities Authority, Remarketed Revenue Bonds, 8/11 at 103.00 Aa1 10,644,183 University of Chicago Project, Series 1985A, 5.500%, 8/01/20 5,400 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/07 at 101.00 AAA 5,473,764 University Health System, Series 1997A, 5.000%, 7/01/24 - MBIA Insured 5,490 Illinois Health Facilities Authority, Revenue Bonds, Sarah Bush 2/07 at 102.00 A 5,612,262 Lincoln Health Center, Series 1996B, 5.500%, 2/15/16 7,245 Illinois Health Facilities Authority, Revenue Refunding Bonds, 7/06 at 100.00 BBB- 7,249,202 Proctor Community Hospital, Series 1991, 7.375%, 1/01/23 1,500 Illinois Housing Development Authority, Housing Finance Bonds, 1/15 at 100.00 AAA 1,481,430 Series 2005E, 4.800%, 1/01/36 - FGIC Insured 5,000 Kane, McHenry, Cook and DeKalb Counties Community Unit 12/11 at 100.00 AAA 5,426,500 School District 300, Carpentersville, Illinois, General Obligation Bonds, Series 2000, 5.500%, 12/01/19 (Pre-refunded 12/01/11) - MBIA Insured 11,345 Lake and McHenry Counties Community Unit School 1/15 at 60.14 Aaa 4,389,267 District 118, Wauconda, Illinois, General Obligation Bonds, Series 2005B, 0.000%, 1/01/25 - FSA Insured 3,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 3,182,040 Conference Center and Hotel Revenue Bonds, Series 2005A-1, 7.125%, 1/01/36 22,500 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/09 at 101.00 AAA 23,831,549 Bonds, McCormick Place Expansion Project, Series 1999A, 5.500%, 12/15/24 - FGIC Insured Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1996A: 9,750 0.000%, 12/15/22 - MBIA Insured No Opt. Call AAA 4,394,325 13,000 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 5,584,930 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 25,776,605 3,500 5.750%, 6/01/23 - FSA Insured No Opt. Call AAA 4,038,125 1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,377,818 5.250%, 12/01/34 - FGIC Insured 10,000 Will County Community High School District 210 Lincoln-Way, No Opt. Call Aaa 4,387,800 Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/23 (WI/DD, Settling 5/08/06) - FSA Insured 4,500 Will County School District 122, New Lenox, Illinois, General No Opt. Call Aaa 2,508,210 Obligation Bonds, Series 2000B, 0.000%, 11/01/18 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 233,555 Total Illinois 218,108,489 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.8% (2.6% OF TOTAL INVESTMENTS) 8,755 Indiana Health Facility Financing Authority, Hospital Revenue 11/09 at 101.00 AAA 9,326,964 Bonds, Charity Obligated Group, Series 1999D, 5.500%, 11/15/24 (Pre-refunded 11/15/09) - MBIA Insured 8,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 8,641,120 Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/26 (Pre-refunded 8/15/10) - MBIA Insured 4,190 Indianapolis, Indiana, Economic Development Revenue Bonds, 6/09 at 101.00 Aa3 (4) 4,460,842 Park Tudor Foundation Inc., Project, Series 1999, 5.700%, 6/01/24 (Pre-refunded 6/01/09) - ------------------------------------------------------------------------------------------------------------------------------------ 20,945 Total Indiana 22,428,926 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.2% (0.8% OF TOTAL INVESTMENTS) 7,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 7,144,340 Revenue Bonds, Series 2005C, 5.625%, 6/01/46 - ------------------------------------------------------------------------------------------------------------------------------------ 49 Nuveen Dividend Advantage Municipal Fund (NAD) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS) $ 3,825 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, 10/06 at 101.00 AAA $ 3,684,967 Series 1999, 4.000%, 10/01/18 - FGIC Insured 1,000 Wyandotte County-Kansas City Unified Government, Kansas, 12/15 at 100.00 N/R 1,022,520 Sales Tax Special Obligation Bonds, Redevelopment Project Area B, Series 2005, 5.000%, 12/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ 4,825 Total Kansas 4,707,487 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.7% (1.1% OF TOTAL INVESTMENTS) 3,030 Hardin County School District Finance Corporation, Kentucky, 2/10 at 101.00 Aa3 (4) 3,268,400 School Building Revenue Bonds, Series 2000, 5.750%, 2/01/20 (Pre-refunded 2/01/10) Kentucky Economic Development Finance Authority, Hospital System Revenue Refunding and Improvement Bonds, Appalachian Regional Healthcare Inc., Series 1997: 1,850 5.850%, 10/01/17 4/08 at 102.00 BB- 1,836,236 5,000 5.875%, 10/01/22 4/08 at 102.00 BB- 4,914,550 - ------------------------------------------------------------------------------------------------------------------------------------ 9,880 Total Kentucky 10,019,186 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 4.0% (2.7% OF TOTAL INVESTMENTS) 2,245 Lafayette, Louisiana, Sales Tax Revenue Bonds, Public 5/10 at 101.50 AAA 2,402,419 Improvements, Series 2000B, 5.625%, 5/01/25 - FGIC Insured 1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,911,962 Community Development Authority, GNMA Collateralized Mortgage Revenue Refunding Bonds, Sharlo Apartments, Series 2002A, 6.500%, 6/20/37 5,350 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 5,580,639 Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/33 - MBIA Insured 13,570 Louisiana Transportation Authority, Senior Lien Toll Road 12/10 at 38.73 AAA 4,146,178 Revenue Bonds, Series 2005B, 0.000%, 12/01/28 - MBAC Insured 9,545 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 9,808,728 Settlement Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/30 - ------------------------------------------------------------------------------------------------------------------------------------ 32,460 Total Louisiana 23,849,926 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.4% (1.6% OF TOTAL INVESTMENTS) 1,500 Boston Industrial Development Financing Authority, 9/12 at 102.00 N/R 1,492,350 Massachusetts, Subordinate Revenue Bonds, Crosstown Center Project, Series 2002, 8.000%, 9/01/35 (Alternative Minimum Tax) 4,365 Massachusetts Health and Educational Facilities Authority, 10/15 at 100.00 AAA 4,524,192 Revenue Bonds, Berkshire Health System, Series 2005F, 5.000%, 10/01/19 - AGC Insured 7,000 Massachusetts Port Authority, Special Facilities Revenue 7/07 at 102.00 AAA 7,246,820 Bonds, BOSFUEL Corporation, Series 1997, 5.500%, 7/01/18 - MBIA Insured (Alternative Minimum Tax) 785 Massachusetts Port Authority, Special Facilities Revenue Bonds, 9/06 at 102.00 AAA 805,528 US Airways Group Inc., Series 1996A, 5.875%, 9/01/23 - MBIA Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 13,650 Total Massachusetts 14,068,890 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 3.5% (2.4% OF TOTAL INVESTMENTS) 2,435 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 2,553,122 Bonds, Series 2001A, 5.250%, 7/01/33 - FGIC Insured 15,255 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 14,352,972 Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/28 4,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 4,145,520 Metropolitan Wayne County Airport, Series 1998A, 5.375%, 12/01/16 - MBIA Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 21,690 Total Michigan 21,051,614 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.1% (0.2% OF TOTAL INVESTMENTS) 1,220 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 101.00 AA+ 1,235,311 Bonds, Series 1998H-1, 5.650%, 7/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 50 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 2.1% (1.4% OF TOTAL INVESTMENTS) Kansas City Municipal Assistance Corporation, Missouri, Leasehold Revenue Bonds, Series 2004B-1: $ 7,000 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AAA $ 2,480,730 5,000 0.000%, 4/15/29 - AMBAC Insured No Opt. Call AAA 1,597,800 2,185 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 2,300,150 Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/21 - AMBAC Insured Missouri Health and Educational Facilities Authority, Revenue Bonds, SSM Healthcare System, Series 2001A: 2,185 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 2,352,065 3,670 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 3,941,764 - ------------------------------------------------------------------------------------------------------------------------------------ 20,040 Total Missouri 12,672,509 - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,005 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100.00 AA+ 1,007,633 Series 2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax) 1,000 Montana Higher Education Student Assistance Corporation, 12/09 at 100.00 A2 1,052,220 Student Loan Revenue Bonds, Subordinate Series 1999B, 6.400%, 12/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,005 Total Montana 2,059,853 - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,500 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call AAA 1,511,940 Loan Program, Series 1993A-5A, 6.200%, 6/01/13 - MBIA Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 1.6% (1.1% OF TOTAL INVESTMENTS) 2,115 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 2,231,177 Southern Nevada Water Authority Loan, Series 2001, 5.300%, 6/01/19 - FGIC Insured Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: 8,000 0.000%, 1/01/19 - AMBAC Insured No Opt. Call AAA 4,363,520 3,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 3,109,380 - ------------------------------------------------------------------------------------------------------------------------------------ 13,115 Total Nevada 9,704,077 - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.1% (0.2% OF TOTAL INVESTMENTS) 985 New Hampshire Housing Finance Agency, Single Family 7/06 at 101.00 Aa2 988,428 Mortgage Acquisition Revenue Bonds, Series 1995D, 6.550%, 7/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 6.6% (4.4% OF TOTAL INVESTMENTS) 1,275 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 1,280,432 FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center, Series 2001, 4.800%, 8/01/21 - AMBAC Insured 2,250 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 2,316,623 Loan Revenue Bonds, Series 2000A, 6.000%, 6/01/13 - MBIA Insured (Alternative Minimum Tax) 4,130 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 4,489,599 Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/13 - AMBAC Insured 4,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,477,160 System Bonds, Series 1999A, 5.750%, 6/15/18 10,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 10,502,300 Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.900%, 12/01/17 - MBIA Insured (Alternative Minimum Tax) Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002: 10,720 5.750%, 6/01/32 6/12 at 100.00 BBB 11,122,965 3,165 6.125%, 6/01/42 6/12 at 100.00 BBB 3,334,549 1,365 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 BBB 1,515,955 Tobacco Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39 - ------------------------------------------------------------------------------------------------------------------------------------ 36,905 Total New Jersey 39,039,583 - ------------------------------------------------------------------------------------------------------------------------------------ 51 Nuveen Dividend Advantage Municipal Fund (NAD) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.7% (0.5% OF TOTAL INVESTMENTS) $ 4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA $ 4,084,480 Revenue Bonds, Series 2004, 5.000%, 7/01/32 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 12.7% (8.6% OF TOTAL INVESTMENTS) 80 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA 81,678 Revenue Bonds, Mental Health Services Facilities, Series 1996B, 5.125%, 8/15/21 - MBIA Insured 4,600 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 4,740,714 Revenue Bonds, Mental Health Services Facilities, Series 1996E, 5.250%, 2/15/18 - AMBAC Insured 2,170 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 102.00 AA 2,247,903 Bonds, Franciscan Health Partnership Obligated Group - Frances Shervier Home and Hospital, Series 1997, 5.500%, 7/01/17 - RAAI Insured 7,500 Dormitory Authority of the State of New York, Secured 2/08 at 101.50 AAA 7,795,725 Hospital Revenue Refunding Bonds, Wyckoff Heights Medical Center, Series 1998H, 5.300%, 8/15/21 - MBIA Insured 2,000 Dormitory Authority of the State of New York, Third General 1/08 at 102.00 AAA 2,093,940 Resolution Consolidated Revenue Bonds, City University System, Series 1997-1, 5.375%, 7/01/24 (Pre-refunded 1/01/08) - FSA Insured 5,000 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 5,206,400 General Revenue Bonds, Series 1998A, 5.250%, 12/01/26 (Pre-refunded 6/01/08) - FSA Insured Nassau County, New York, General Obligation Improvement Bonds, Series 1999B: 4,005 5.250%, 6/01/19 (Pre-refunded 6/01/09) - AMBAC Insured 6/09 at 102.00 AAA 4,262,001 7,005 5.250%, 6/01/21 (Pre-refunded 6/01/09) - AMBAC Insured 6/09 at 102.00 AAA 7,454,511 5,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 5,149,850 Water and Sewerage System Revenue Bonds, Fiscal Series 2005B, 5.000%, 6/15/36 - FSA Insured 8,800 New York City Sales Tax Asset Receivable Corporation, 10/14 at 100.00 AAA 9,116,096 New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A, 5.000%, 10/15/32 - AMBAC Insured 10,000 New York City Transitional Finance Authority, New York, 8/09 at 101.00 AAA 10,720,400 Future Tax Secured Bonds, Fiscal Series 2000A, 5.750%, 8/15/24 (Pre-refunded 8/15/09) 2,000 New York City, New York, General Obligation Bonds, 2/08 at 101.00 AAA 2,063,320 Fiscal Series 1998E, 5.250%, 8/01/14 - AMBAC Insured 13,930 New York City, New York, General Obligation Bonds, 2/08 at 101.00 AAA 14,417,968 Fiscal Series 1998F, 5.375%, 8/01/19 - MBIA Insured 70 New York City, New York, General Obligation Bonds, 2/08 at 101.00 AAA 72,701 Fiscal Series 1998F, 5.375%, 8/01/19 (Pre-refunded 2/01/08) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 72,160 Total New York 75,423,207 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.7% (0.4% OF TOTAL INVESTMENTS) 3,830 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 3,866,615 Healthcare System Revenue Bonds, DBA Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 4.1% (2.8% OF TOTAL INVESTMENTS) 2,300 Amherst Exempted Village School District, Ohio, Unlimited 12/11 at 100.00 Aaa 2,412,309 Tax General Obligation School Improvement Bonds, Series 2001, 5.125%, 12/01/21 - FGIC Insured 3,635 Franklin County, Ohio, FHA-Insured Multifamily Housing 7/06 at 102.00 Aa2 3,666,515 Mortgage Revenue Bonds, Hamilton Creek Apartments Project, Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax) 3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 3,712,598 Initiatives, Series 2004A, 5.000%, 5/01/30 13,000 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 13,433,290 Revenue Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) 1,115 Warren County, Ohio, Special Assessment Bonds, Waterstone 12/07 at 101.00 Aa2 1,154,382 Boulevard Project, Series 1997, 5.500%, 12/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ 23,700 Total Ohio 24,379,094 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.4% (0.3% OF TOTAL INVESTMENTS) 2,355 Portland, Oregon, Downtown Waterfront Urban Renewal 6/10 at 101.00 Aaa 2,516,129 and Redevelopment Revenue Bonds, Series 2000A, 5.500%, 6/15/20 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 52 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 4.9% (3.3% OF TOTAL INVESTMENTS) $ 3,480 Allegheny County Hospital Development Authority, 11/10 at 102.00 Ba3 $ 4,146,107 Pennsylvania, Revenue Bonds, West Penn Allegheny Health System, Series 2000B, 9.250%, 11/15/22 1,710 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,799,741 Resource Recovery Revenue Refunding Bonds, Panther Creek Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) 18,900 Philadelphia Airport System, Pennsylvania, Revenue Refunding 6/08 at 102.00 AAA 19,718,558 Bonds, Series 1998A, 5.500%, 6/15/18 - FGIC Insured (Alternative Minimum Tax) 3,205 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,517,007 Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded 8/01/12) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 27,295 Total Pennsylvania 29,181,413 - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 2.1% (1.4% OF TOTAL INVESTMENTS) 12,500 Puerto Rico Housing Finance Authority, Capital Fund Program No Opt. Call AA 12,268,500 Revenue Bonds, Series 2003, 4.500%, 12/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 3.2% (2.2% OF TOTAL INVESTMENTS) 2,015 Central Falls, Rhode Island, General Obligation School Bonds, 5/09 at 102.00 AA 2,168,362 Series 1999, 6.250%, 5/15/20 - RAAI Insured 3,500 Providence Redevelopment Agency, Rhode Island, Revenue 4/10 at 101.00 Aaa 3,788,085 Bonds, Public Safety and Municipal Building Projects, Series 1999A, 5.750%, 4/01/29 (Pre-refunded 4/01/10) - AMBAC Insured 12,500 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 13,146,250 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ 18,015 Total Rhode Island 19,102,697 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,500 Greenville, South Carolina, Hospital Facilities Revenue Bonds, 5/11 at 101.00 AAA 1,525,275 Series 2001, 5.000%, 5/01/31 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.7% (1.2% OF TOTAL INVESTMENTS) 6,400 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 6,844,800 Revenue Bonds, Series 1999D, 6.000%, 3/01/24 - AMBAC Insured (Alternative Minimum Tax) 2,425 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 2,494,161 Revenue Bonds, Series 2001B, 5.125%, 3/01/26 - FSA Insured 250 Tennessee Housing Development Agency, Homeownership 7/10 at 101.00 AA 251,118 Program Bonds, Series 2000-1, 6.375%, 7/01/25 (Alternative Minimum Tax) 670 Tennessee Housing Development Agency, Homeownership 7/10 at 100.00 AA 672,754 Program Bonds, Series 2000-2B, 6.250%, 1/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 9,745 Total Tennessee 10,262,833 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 15.1% (10.2% OF TOTAL INVESTMENTS) 1,000 Alliance Airport Authority, Texas, Special Facilities Revenue 6/06 at 100.00 CCC 969,850 Bonds, American Airlines Inc., Series 1990, 7.500%, 12/01/29 (Alternative Minimum Tax) 2,560 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Baa2 2,996,454 Refunding Bonds, TXU Electric Company, Series 1999C, 7.700%, 3/01/32 (Alternative Minimum Tax) 4,675 Carrollton-Farmers Branch Independent School District, Dallas 2/09 at 100.00 AAA 4,953,490 County, Texas, Unlimited Tax School Building Bonds, Series 1999, 6.000%, 2/15/20 (Pre-refunded 2/15/09) 2,820 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 2,856,463 Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured 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 2,323,736 7,000 0.000%, 8/15/21 8/09 at 49.48 AAA 2,974,580 7,345 0.000%, 8/15/23 8/09 at 44.01 AAA 2,775,822 7,000 0.000%, 8/15/24 8/09 at 41.50 AAA 2,494,800 7,350 0.000%, 8/15/25 8/09 at 39.14 AAA 2,479,155 7,000 0.000%, 8/15/26 8/09 at 36.91 AAA 2,225,160 53 Nuveen Dividend Advantage Municipal Fund (NAD) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 820 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100.00 AAA $ 834,965 Bonds, Series 2001, 5.000%, 12/01/31 - AMBAC Insured 6,000 Dallas-Ft. Worth International Airport Facility Improvement 11/07 at 100.00 CCC 5,904,720 Corporation, Texas, Revenue Refunding Bonds, American Airlines Inc., Series 2000C, 6.150%, 5/01/29 (Mandatory put 11/01/07) (Alternative Minimum Tax) Harris County Health Facilities Development Corporation, Texas, Revenue Bonds, Christus Health, Series 1999A: 12,240 5.375%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 12,925,073 11,180 5.375%, 7/01/29 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 11,805,745 2,205 Harris County-Houston Sports Authority, Texas, Senior Lien No Opt. Call AAA 1,099,678 Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/20 - MBIA Insured 2,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 751,400 Bonds, Convention and Entertainment Project, Series 2001B, 0.000%, 9/01/30 - AMBAC Insured 2,500 Jefferson County, Texas, Certificates of Obligation, 8/10 at 100.00 AAA 2,717,775 Series 2000, 6.000%, 8/01/25 (Pre-refunded 8/01/10) - FSA Insured 2,000 Laredo, Texas, Sports Venue Sales Tax Revenue Bonds, 3/09 at 100.00 AAA 2,084,860 Series 2001, 5.300%, 3/15/26 (Pre-refunded 3/15/09) - FGIC Insured 30,095 Leander Independent School District, Williamson and Travis 8/12 at 27.94 AAA 6,296,476 Counties, Texas, General Obligation Bonds, Series 2004, 0.000%, 8/15/34 9,345 Leander Independent School District, Williamson and Travis 8/15 at 37.33 AAA 2,160,564 Counties, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/33 - FGIC Insured 1,500 Port Arthur, Texas, Jefferson County, General Obligation Bonds, 2/07 at 100.00 AAA 1,515,930 Series 1997, 5.000%, 2/15/21 (Pre-refunded 2/15/07) - MBIA Insured 10,000 Tarrant County Health Facilities Development Corporation, 2/08 at 102.00 AAA 10,393,100 Texas, Revenue Bonds, Texas Health Resources System, Series 1997A, 5.250%, 2/15/17 - MBIA Insured 7,000 White Settlement Independent School District, Tarrant 8/15 at 34.92 AAA 1,511,720 County, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/35 Wylie Independent School District, Taylor County, Texas, General Obligation Bonds, Series 2005: 3,000 0.000%, 8/15/20 8/15 at 78.46 AAA 1,471,680 3,000 0.000%, 8/15/22 8/15 at 70.77 AAA 1,320,330 - ------------------------------------------------------------------------------------------------------------------------------------ 155,265 Total Texas 89,843,526 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.4% (0.2% OF TOTAL INVESTMENTS) Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 1999C-2, Class II: 475 5.700%, 7/01/19 (Alternative Minimum Tax) 1/10 at 101.50 AAA 476,667 175 5.750%, 7/01/21 (Alternative Minimum Tax) 1/10 at 101.50 AA 181,921 160 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101.00 AA 160,472 Series 1999D, 5.850%, 7/01/21 (Alternative Minimum Tax) 55 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101.50 Aa2 55,210 Series 1999F, 6.300%, 7/01/21 (Alternative Minimum Tax) 1,300 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA- 1,321,658 Series 2000F-2, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,165 Total Utah 2,195,928 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS) 3,395 Virginia Small Business Financing Authority, Industrial 11/09 at 102.00 N/R 3,514,945 Development Water Revenue Bonds, S.I.L. Clean Water, LLC Project, Series 1999, 7.250%, 11/01/24 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 11.3% (7.6% OF TOTAL INVESTMENTS) 4,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 4,290,840 Bonds, Nuclear Project 3, Series 2003A, 5.500%, 7/01/17 - XLCA Insured 54 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18, Series 1999B: $ 1,755 6.000%, 9/01/15 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA $ 1,880,904 2,590 6.000%, 9/01/16 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 2,775,807 Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18, Series 1999C: 875 6.000%, 9/01/15 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 937,773 1,260 6.000%, 9/01/16 - MBIA Insured (Alternative Minimum Tax) 3/10 at 101.00 AAA 1,350,392 9,760 Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 10,617,318 Bonds, Series 2001A, 5.625%, 1/01/21 (Pre-refunded 1/01/11) - FSA Insured 4,800 Washington Public Power Supply System, Revenue Refunding 7/07 at 102.00 AAA 4,968,000 Bonds, Nuclear Project 3, Series 1997A, 5.250%, 7/01/16 - FSA Insured 7,280 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 7,918,092 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 11,605 Washington, Certificates of Participation, Washington 7/09 at 100.00 AAA 12,078,484 Convention and Trade Center, Series 1999, 5.250%, 7/01/16 - MBIA Insured 3,350 Washington, General Obligation Compound Interest Bonds, No Opt. Call AAA 1,945,345 Series 1999S-2, 0.000%, 1/01/18 - FSA Insured Washington, General Obligation Compound Interest Bonds, Series 1999S-3: 17,650 0.000%, 1/01/20 No Opt. Call Aa1 9,140,759 18,470 0.000%, 1/01/21 No Opt. Call Aa1 9,063,968 - ------------------------------------------------------------------------------------------------------------------------------------ 83,395 Total Washington 66,967,682 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 6.9% (4.6% OF TOTAL INVESTMENTS) 2,250 Green Bay, Wisconsin, Water System Revenue Bonds, 11/14 at 100.00 Aaa 2,319,952 Series 2004, 5.000%, 11/01/29 - FSA Insured 3,810 La Crosse, Wisconsin, Industrial Development Revenue Refunding 12/08 at 102.00 AAA 4,021,684 Bonds, Dairyland Power Cooperative, Series 1997C, 5.550%, 2/01/15 - AMBAC Insured Wisconsin Health and Educational Facilities Authority, Revenue Bonds, FH Healthcare Development Inc., Series 1999: 8,375 6.250%, 11/15/20 (Pre-refunded 11/15/09) 11/09 at 101.00 N/R (4) 9,102,704 5,000 6.250%, 11/15/28 (Pre-refunded 11/15/09) 11/09 at 101.00 N/R (4) 5,434,450 4,180 Wisconsin Health and Educational Facilities Authority, 5/09 at 101.00 A 4,276,851 Revenue Bonds, Kenosha Hospital and Medical Center Inc., Series 1999, 5.625%, 5/15/29 12,700 Wisconsin Health and Educational Facilities Authority, Revenue 8/09 at 101.00 Aaa 13,343,382 Bonds, Mercy Health System Corporation, Series 1999, 5.500%, 8/15/25 - AMBAC Insured 2,200 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 2,218,480 Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ 38,515 Total Wisconsin 40,717,503 - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,001,865 Total Investments (cost $825,790,358) - 148.0% 879,445,825 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.7% 9,574,893 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.7)% (295,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 594,020,718 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. See accompanying notes to financial statements. 55 Nuveen Dividend Advantage Municipal Fund 2 (NXZ) Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM MUNICIPAL BONDS - 145.9% (99.9% OF TOTAL INVESTMENTS) ALABAMA - 4.2% (2.9% OF TOTAL INVESTMENTS) $ 18,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/11 at 101.00 A2 $ 19,313,630 Series 2001A, 5.750%, 6/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.7% (0.4% OF TOTAL INVESTMENTS) 2,955 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/11 at 100.00 BBB 3,007,658 Settlement Asset-Backed Bonds, Series 2001, 5.500%, 6/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.7% (0.5% OF TOTAL INVESTMENTS) 3,120 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AAA 3,209,981 Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.4% (0.3% OF TOTAL INVESTMENTS) 1,950 Arkansas Development Finance Authority, Single Family 1/12 at 100.00 AAA 1,987,304 Mortgage Revenue Bonds, GNMA Mortgage-Backed Securities Program, Series 2002C, 5.400%, 1/01/34 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 10.9% (7.4% OF TOTAL INVESTMENTS) 6,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 6,288,300 Stanford University, Series 2001Q, 5.250%, 12/01/32 6,000 California Statewide Community Development Authority, 4/34 at 100.00 A+ 5,885,640 Revenue Bonds, Kaiser Permanente System, Series 2004G, 2.300%, 4/01/34 (Mandatory put 5/01/07) 13,825 California, Department of Veterans Affairs, Home Purchase 6/06 at 101.00 AAA 13,983,573 Revenue Bonds, Series 2001A, 5.550%, 12/01/25 - AMBAC Insured 11,200 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A 11,689,776 5.250%, 2/01/28 5,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 5,568,800 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 6,000 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- 6,367,440 California, Sublease Revenue Bonds, Los Angeles International Airport, American Airlines Inc. Terminal 4 Project, Series 2002C, 7.500%, 12/01/24 (Alternative Minimum Tax) 190 Yuba County Water Agency, California, Yuba River 9/06 at 100.00 Baa3 189,992 Development Revenue Bonds, Pacific Gas and Electric Company, Series 1966A, 4.000%, 3/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 48,215 Total California 49,973,521 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 6.0% (4.1% OF TOTAL INVESTMENTS) 2,835 Colorado Educational and Cultural Facilities Authority, 8/11 at 100.00 AAA 3,288,231 Charter School Revenue Bonds, Peak-to-Peak Charter School, Series 2001, 7.500%, 8/15/21 (Pre-refunded 8/15/11) 2,500 Colorado Educational and Cultural Facilities Authority, 6/14 at 100.00 N/R 2,152,200 Revenue Bonds, Colorado Lutheran High School Association, Series 2004A, 7.625%, 6/01/34 10,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 2,652,600 Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) - MBIA Insured 1,500 Eagle County Air Terminal Corporation, Colorado, Airport 5/11 at 101.00 N/R 1,579,245 Terminal Revenue Bonds, Series 2001, 7.125%, 5/01/31 (Alternative Minimum Tax) 755 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 788,024 Obligation Bonds, Series 2004, 5.000%, 12/15/22 - FSA Insured 5,000 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 5,211,750 Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41 - FSA Insured 56 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO (continued) Northwest Parkway Public Highway Authority, Colorado, Senior Lien Revenue Bonds, Series 2001B: $ 22,000 0.000%, 6/15/28 - FSA Insured 6/11 at 35.65 AAA $ 6,164,400 17,650 0.000%, 6/15/29 - AMBAC Insured 6/11 at 33.45 AAA 4,640,891 1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax 6/14 at 101.00 N/R 1,099,440 Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ 63,240 Total Colorado 27,576,781 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.3% (0.1% OF TOTAL INVESTMENTS) 1,145 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 1,212,578 Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 5.0% (3.4% OF TOTAL INVESTMENTS) 15,000 Jacksonville, Florida, Transportation Revenue Bonds, 10/11 at 100.00 AAA 15,789,900 Series 2001, 5.250%, 10/01/29 - MBIA Insured 4,000 Miami-Dade County Health Facility Authority, Florida, Hospital 8/11 at 101.00 AAA 4,129,960 Revenue Refunding Bonds, Miami Children's Hospital, Series 2001A, 5.125%, 8/15/26 - AMBAC Insured 3,000 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 AAA 3,123,540 Miami International Airport, Series 2002, 5.375%, 10/01/32 - FGIC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 22,000 Total Florida 23,043,400 - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 2.2% (1.5% OF TOTAL INVESTMENTS) Honolulu Board of Water Supply, Hawaii, Water System Revenue Bonds, Series 2001: 3,000 5.250%, 7/01/26 - FSA Insured 7/11 at 100.00 AAA 3,152,100 6,725 5.250%, 7/01/31 - FSA Insured 7/11 at 100.00 AAA 7,065,957 - ------------------------------------------------------------------------------------------------------------------------------------ 9,725 Total Hawaii 10,218,057 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 10.6% (7.3% OF TOTAL INVESTMENTS) 3,645 Chicago, Illinois, FHA/GNMA Collateralized Multifamily Housing 12/11 at 100.00 A+ 3,742,613 Revenue Bonds, Stone Terrace Apartments, Series 2001A, 5.750%, 12/20/42 (Alternative Minimum Tax) 1,350 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 4/11 at 105.00 AAA 1,381,158 Mortgage Revenue Bonds, Series 2001A, 6.250%, 10/01/32 (Alternative Minimum Tax) 14,920 Chicago, Illinois, General Obligation Bonds, Series 2001A, 1/11 at 101.00 AAA 15,547,684 5.250%, 1/01/33 - MBIA Insured 350 Chicago, Illinois, General Obligation Bonds, Series 2001A, 1/11 at 101.00 AAA 375,169 5.250%, 1/01/33 (Pre-refunded 1/01/11) - MBIA Insured 285 Chicago, Illinois, General Obligation Refunding Bonds, 1/08 at 100.00 AAA 289,526 Series 1996B, 5.125%, 1/01/25 - FGIC Insured 3,180 Illinois Development Finance Authority, Revenue Bonds, Chicago 12/21 at 100.00 BBB 3,277,594 Charter School Foundation, Series 2002A, 6.250%, 12/01/32 5,000 Illinois Development Finance Authority, Revenue Bonds, 9/11 at 100.00 AAA 5,339,150 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 A- 3,282,869 Midwestern University, Series 2001B, 6.000%, 5/15/31 3,000 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa3 3,055,080 Revenue Bonds, Educational Advancement Foundation Fund, University Center Project, Series 2002, 6.250%, 5/01/34 5,000 Illinois Health Facilities Authority, Revenue Bonds, Edward 2/11 at 101.00 AAA 5,158,000 Hospital Obligated Group, Series 2001B, 5.250%, 2/15/34 - FSA Insured 2,275 Illinois, Sales Tax Revenue Bonds, Series 2001, 6/11 at 100.00 AAA 2,444,965 5.500%, 6/15/16 4,980 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/06 at 102.00 AAA 5,086,721 Refunding Bonds, McCormick Place Expansion Project, Series 1996A, 5.250%, 6/15/27 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 47,085 Total Illinois 48,980,529 - ------------------------------------------------------------------------------------------------------------------------------------ 57 Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 4.8% (3.3% OF TOTAL INVESTMENTS) $ 2,000 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 A+ $ 2,049,860 Bonds, Methodist Hospitals Inc., Series 2001, 5.500%, 9/15/31 2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,894,925 Refunding Bonds, Columbus Regional Hospital, Series 1993, 7.000%, 8/15/15 - FSA Insured Indiana Transportation Finance Authority, Highway Revenue Bonds, Series 2003A: 4,000 5.000%, 6/01/23 - FSA Insured 6/13 at 100.00 AAA 4,137,280 6,000 5.000%, 6/01/24 - FSA Insured 6/13 at 100.00 AAA 6,194,880 3,107 Indianapolis, Indiana, Special Facility Revenue Bonds, 5/06 at 102.00 N/R 310,699 United Airlines Inc., Indianapolis Maintenance Center Project, Series 1995A, 6.500%, 11/15/31 (Alternative Minimum Tax) (6) 6,100 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/09 at 102.00 BBB 6,290,930 Madison Center Inc., Series 1999, 5.800%, 2/15/24 - ------------------------------------------------------------------------------------------------------------------------------------ 23,707 Total Indiana 21,878,574 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.2% (0.1% OF TOTAL INVESTMENTS) 1,000 Iowa Higher Education Loan Authority, Private College Facility 10/12 at 100.00 A (4) 1,083,330 Revenue Bonds, Wartburg College, Series 2002, 5.500%, 10/01/28 (Pre-refunded 10/01/12) - ACA Insured - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 3.9% (2.6% OF TOTAL INVESTMENTS) 17,000 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/11 at 101.00 A+ 17,755,310 Improvement Bonds, Via Christi Health System Inc., Series 2001-III, 5.625%, 11/15/31 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 4.3% (2.9% OF TOTAL INVESTMENTS) 18,825 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 19,739,895 Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.9% (2.7% OF TOTAL INVESTMENTS) 2,875 Massachusetts Port Authority, Special Facilities Revenue Bonds, 7/07 at 102.00 AAA 2,987,901 BOSFUEL Corporation, Series 1997, 5.750%, 7/01/39 - MBIA Insured (Alternative Minimum Tax) 15,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 15,200,400 System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 17,875 Total Massachusetts 18,188,301 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 14.2% (9.7% OF TOTAL INVESTMENTS) 15,390 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/11 at 100.00 AAA 16,454,680 Bonds, Series 2001A, 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2001A: 20,000 5.500%, 7/01/33 - FGIC Insured 7/11 at 101.00 AAA 21,483,600 14,610 5.250%, 7/01/33 - FGIC Insured 7/11 at 100.00 AAA 15,318,731 4,000 Michigan Municipal Bond Authority, Public School Academy 10/09 at 102.00 Ba1 4,220,680 Revenue Bonds, Detroit Academy of Arts and Sciences Charter School, Series 2001A, 8.000%, 10/01/31 2,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 1,925,660 Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.125%, 8/15/18 Michigan State Hospital Finance Authority, Revenue Refunding Bonds, Detroit Medical Center Obligated Group, Series 1993A: 2,000 6.250%, 8/15/13 8/06 at 100.00 BB- 2,000,720 4,000 6.500%, 8/15/18 8/06 at 100.00 BB- 4,001,920 - ------------------------------------------------------------------------------------------------------------------------------------ 62,000 Total Michigan 65,405,991 - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 3.2% (2.2% OF TOTAL INVESTMENTS) 14,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 14,555,240 Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/32 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 4.9% (3.4% OF TOTAL INVESTMENTS) 21,000 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 22,555,050 Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 58 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.7% (0.5% OF TOTAL INVESTMENTS) $ 3,280 Montana Board of Housing, Single Family Program Bonds, 12/10 at 100.00 AA+ $ 3,368,527 Series 2001A-2, 5.700%, 6/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 4.1% (2.8% OF TOTAL INVESTMENTS) 12,275 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 12,722,547 Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured 3,500 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 3,647,490 Revenue Bonds, Las Vegas Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40 2,330 Henderson, Nevada, Healthcare Facility Revenue Bonds, 7/08 at 101.00 A- 2,381,237 Catholic Healthcare West, Series 1998A, 5.250%, 7/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ 18,105 Total Nevada 18,751,274 - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 2.1% (1.5% OF TOTAL INVESTMENTS) 8,000 New Hampshire Business Finance Authority, Pollution Control 10/08 at 102.00 Baa1 8,330,560 Remarketed Revenue Refunding Bonds, Connecticut Light and Power Company, Series 1992A, 5.850%, 12/01/22 1,530 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 1,542,209 Mortgage Acquisition Bonds, Series 2001A, 5.700%, 1/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 9,530 Total New Hampshire 9,872,769 - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.3% (1.6% OF TOTAL INVESTMENTS) 3,995 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 4,053,247 Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax) 475 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 492,855 Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 2,200 6.375%, 6/01/32 6/13 at 100.00 BBB 2,384,778 425 6.750%, 6/01/39 6/13 at 100.00 BBB 472,001 3,085 6.250%, 6/01/43 6/13 at 100.00 BBB 3,327,018 - ------------------------------------------------------------------------------------------------------------------------------------ 10,180 Total New Jersey 10,729,899 - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 5.4% (3.7% OF TOTAL INVESTMENTS) New Mexico Hospital Equipment Loan Council, Hospital Revenue Bonds, Presbyterian Healthcare Services, Series 2001A: 12,000 5.500%, 8/01/25 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 13,000,800 10,800 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 11,700,720 - ------------------------------------------------------------------------------------------------------------------------------------ 22,800 Total New Mexico 24,701,520 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 6.4% (4.4% OF TOTAL INVESTMENTS) 4,900 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 Ba1 5,267,745 Bonds, Mount Sinai NYU Health Obligated Group, Series 2000A, 6.625%, 7/01/19 6,000 Long Island Power Authority, New York, Electric System General 5/11 at 100.00 A- 6,296,100 Revenue Bonds, Series 2001L, 5.375%, 5/01/33 5,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 B- 5,594,800 Special Facilities Revenue Bonds, JFK Airport - American Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative Minimum Tax) 12,000 New York City Municipal Water Finance Authority, New York, 6/11 at 101.00 AA+ 12,261,840 Water and Sewerage System Revenue Bonds, Fiscal Series 2001C, 5.125%, 6/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ 27,900 Total New York 29,420,485 - ------------------------------------------------------------------------------------------------------------------------------------ 59 Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.7% (1.2% OF TOTAL INVESTMENTS) $ 2,950 North Carolina Capital Facilities Financing Agency, Revenue 4/13 at 100.00 AAA $ 3,013,042 Bonds, Johnson and Wales University, Series 2003A, 5.000%, 4/01/33 - XLCA Insured 4,500 North Carolina Eastern Municipal Power Agency, Power System 1/09 at 102.00 BBB 4,748,670 Revenue Refunding Bonds, Series 1999B, 5.600%, 1/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 7,450 Total North Carolina 7,761,712 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 0.6% (0.4% OF TOTAL INVESTMENTS) 2,520 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa1 2,551,676 Program Refunding Bonds, Series 2001A, 5.550%, 1/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.4% (0.3% OF TOTAL INVESTMENTS) 1,845 Columbus City School District, Franklin County, Ohio, General 6/13 at 100.00 AAA 1,899,833 Obligation Bonds, Series 2003, 5.000%, 12/01/28 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.8% (0.6% OF TOTAL INVESTMENTS) Oklahoma Development Finance Authority, Revenue Refunding Bonds, Hillcrest Healthcare System, Series 1999A: 2,655 5.125%, 8/15/10 (Pre-refunded 8/15/09) 8/09 at 101.00 AAA 2,784,245 1,000 5.200%, 8/15/11 (Pre-refunded 8/15/09) 8/09 at 101.00 AAA 1,050,980 - ------------------------------------------------------------------------------------------------------------------------------------ 3,655 Total Oklahoma 3,835,225 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 3.8% (2.6% OF TOTAL INVESTMENTS) 8,000 Clackamas County Hospital Facility Authority, Oregon, Revenue 5/11 at 101.00 AA 8,321,360 Refunding Bonds, Legacy Health System, Series 2001, 5.250%, 5/01/21 9,000 Oregon Department of Administrative Services, Certificates 5/11 at 101.00 AAA 9,213,210 of Participation, Series 2001D, 5.000%, 5/01/26 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 17,000 Total Oregon 17,534,570 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 3.6% (2.5% OF TOTAL INVESTMENTS) 5,000 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 Ba3 5,952,500 Revenue Bonds, West Penn Allegheny Health System, Series 2000B, 9.250%, 11/15/30 1,930 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,031,286 Resource Recovery Revenue Refunding Bonds, Panther Creek Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) 8,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 Aa3 8,644,880 Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31 - ------------------------------------------------------------------------------------------------------------------------------------ 14,930 Total Pennsylvania 16,628,666 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 1.1% (0.7% OF TOTAL INVESTMENTS) 4,820 South Dakota Housing Development Authority, Remarketed 5/09 at 102.00 AAA 4,959,925 Homeownership Mortgage Bonds, Series 1997E-4, 5.450%, 5/01/18 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 24.6% (16.8% OF TOTAL INVESTMENTS) 7,500 Austin, Texas, Electric Utility System Revenue Refunding 11/10 at 100.00 AAA 7,677,225 Bonds, Series 2001, 5.000%, 11/15/30 - FSA Insured Dallas-Fort Worth International Airport Public Facility Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001: 15,000 5.250%, 1/15/26 - FSA Insured 1/09 at 100.00 AAA 15,418,350 1,750 5.200%, 1/15/31 - FSA Insured 1/09 at 100.00 AAA 1,795,325 6,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise 9/14 at 100.00 N/R 6,487,980 Regional Health System, Series 2004A, 7.125%, 9/01/34 10,000 Gulf Coast Industrial Development Authority, Texas, Solid 4/12 at 100.00 Ba1 11,227,500 Waste Disposal Revenue Bonds, Citgo Petroleum Corporation Project, Series 1998, 8.000%, 4/01/28 (Alternative Minimum Tax) 3,000 Harris County Health Facilities Development Corporation, 7/09 at 101.00 AAA 3,167,910 Texas, Revenue Bonds, Christus Health, Series 1999A, 5.375%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured 60 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 30,980 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA $ 32,068,639 Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - MBIA Insured 40,000 Harris County-Houston Sports Authority, Texas, Senior Lien 11/30 at 54.04 AAA 6,234,000 Revenue Refunding Bonds, Series 2001A, 0.000%, 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 (Pre-refunded 8/15/11) 8/11 at 43.18 AAA 3,753,679 12,940 0.000%, 8/15/26 (Pre-refunded 8/15/11) 8/11 at 40.60 AAA 4,262,954 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Project, Series 2001B: 5,000 0.000%, 9/01/30 - AMBAC Insured No Opt. Call AAA 1,502,800 5,000 0.000%, 9/01/31 - AMBAC Insured No Opt. Call AAA 1,430,350 5,000 Metro Health Facilities Development Corporation, Texas, 1/11 at 100.00 B1 5,152,100 Hospital Revenue Bonds, Wilson N. Jones Memorial Hospital, Series 2001, 7.250%, 1/01/31 10,500 Texas, General Obligation Bonds, Water Financial Assistance 8/11 at 100.00 Aa1 10,866,870 Program, Series 2001, 5.250%, 8/01/35 2,000 Tom Green County Health Facilities Development Corporation, 5/11 at 101.00 Baa3 2,166,700 Texas, Hospital Revenue Bonds, Shannon Health System Project, Series 2001, 6.750%, 5/15/21 - ------------------------------------------------------------------------------------------------------------------------------------ 165,385 Total Texas 113,212,382 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.1% (0.1% OF TOTAL INVESTMENTS) 5,000 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 23.55 BB- 1,029,800 Bonds, Route 895 Connector Toll Road, Series 1998B, 0.000%, 8/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 6.0% (4.1% OF TOTAL INVESTMENTS) Seattle, Washington, Municipal Light and Power Revenue Refunding and Improvement Bonds, Series 2001: 4,820 5.500%, 3/01/19 - FSA Insured 3/11 at 100.00 AAA 5,112,237 7,250 5.125%, 3/01/26 - FSA Insured 3/11 at 100.00 AAA 7,444,083 3,500 Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 3,826,060 Bonds, Series 2001A, 5.750%, 1/01/18 (Pre-refunded 1/01/11) - FSA Insured 7,500 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 7,797,075 Bonds, Sisters of Providence Health System, Series 2001A, 5.250%, 10/01/21 - MBIA Insured 985 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 1,071,335 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 2,100 Washington, Certificates of Participation, Washington 7/09 at 100.00 AAA 2,175,999 Convention and Trade Center, Series 1999, 5.125%, 7/01/13 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 26,155 Total Washington 27,426,789 - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 1.1% (0.8% OF TOTAL INVESTMENTS) 5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,092,350 Appalachian Power Company, Series 2003L, 5.500%, 10/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 0.7% (0.5% OF TOTAL INVESTMENTS) 1,000 Wisconsin Health and Educational Facilities Authority, 5/12 at 100.00 N/R (4) 1,162,560 Revenue Bonds, Divine Savior Healthcare, Series 2002A, 7.375%, 5/01/26 (Pre-refunded 5/01/12) 2,100 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 2,117,640 Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ 3,100 Total Wisconsin 3,280,200 - ------------------------------------------------------------------------------------------------------------------------------------ $ 741,997 Total Long-Term Municipal Bonds (cost $625,893,472) 671,742,732 =============----------------------------------------------------------------------------------------------------------------------- 61 Nuveen Dividend Advantage Municipal Fund 2 (NXZ) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) SHARES DESCRIPTION (1) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - 0.1% (0.1% OF TOTAL INVESTMENTS) AIRLINES - 0.1% (0.1% OF TOTAL INVESTMENTS) 12,027 UAL Corporation (5) (6) (7) $ 433,092 - ------------------------------------------------------------------------------------------------------------------------------------ Total Common Stocks (cost $488,938) 433,092 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $626,382,410) - 146.0% 672,175,824 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.2% 10,331,316 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.2)% (222,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 460,507,140 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Non-income producing. (6) On December 9, 2002, UAL Corporation ("UAL"), the holding company of United Air Lines, Inc. filed for federal bankruptcy protection. The Adviser determined that it was likely that United would not remain current on their interest payment obligations with respect to the bonds previously held and thus the Fund had stopped accruing interest on its UAL bonds. (7) On February 1, 2006, UAL emerged from federal bankruptcy with the acceptance of its reorganization plan by the bankruptcy court. Under the settle agreement established to meet UAL's unsecured bond obligations, the bondholders, including the Fund, received a distribution of UAL common stock during the subsequent month, and the bankruptcy court dismissed all unsecured claims of bondholders, including those of the Fund. Subsequent to fiscal year-end, the Fund liquidated its UAL common stock holdings. N/R Not rated. See accompanying notes to financial statements. 62 Nuveen Dividend Advantage Municipal Fund 3 (NZF) Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 0.9% (0.6% OF TOTAL INVESTMENTS) $ 5,655 Alabama State Port Authority, Revenue Bonds, State Docks 10/11 at 100.00 AAA $ 5,797,280 Department Facilities, Series 2001, 5.250%, 10/01/26 - AMBAC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.7% (0.4% OF TOTAL INVESTMENTS) 4,000 Alaska Student Loan Corporation, Student Loan Revenue 7/08 at 100.00 AAA 4,070,760 Bonds, Series 1998A, 5.250%, 7/01/14 - AMBAC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.9% (0.6% OF TOTAL INVESTMENTS) Sebastian County Health Facilities Board, Arkansas, Hospital Revenue Improvement Bonds, Sparks Regional Medical Center, Series 2001A: 1,805 5.500%, 11/01/13 11/11 at 101.00 Baa2 1,879,817 1,900 5.500%, 11/01/14 11/11 at 101.00 Baa2 1,969,616 1,745 5.250%, 11/01/21 11/11 at 101.00 Baa2 1,758,855 - ------------------------------------------------------------------------------------------------------------------------------------ 5,450 Total Arkansas 5,608,288 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 10.7% (7.2% OF TOTAL INVESTMENTS) 855 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 860,113 Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/28 5,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 5,235,250 Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31 5,000 California Statewide Community Development Authority, 4/34 at 100.00 A+ 4,904,700 Revenue Bonds, Kaiser Permanente System, Series 2004G, 2.300%, 4/01/34 (Mandatory put 5/01/07) 18,850 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 19,317,292 Series 2001BZ, 5.350%, 12/01/21 - MBIA Insured (Alternative Minimum Tax) Los Angeles Regional Airports Improvement Corporation, California, Lease Revenue Refunding Bonds, LAXFUEL Corporation at Los Angeles International Airport, Series 2001: 13,955 5.750%, 1/01/16 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 14,901,847 5,000 5.375%, 1/01/21 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 5,171,850 1,500 5.250%, 1/01/23 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 1,534,950 10,000 5.500%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 10,305,900 10,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 2,374,900 County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/35 - MBIA Insured 3,000 San Mateo County Community College District, California, No Opt. Call AAA 888,930 General Obligation Bonds, Series 2006C, 0.000%, 9/01/30 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 73,160 Total California 65,495,732 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 7.7% (5.1% OF TOTAL INVESTMENTS) 2,250 Canterberry Crossing Metropolitan District II, Parker, 12/12 at 100.00 N/R 2,432,093 Colorado, Limited Tax General Obligation Bonds, Series 2002, 7.375%, 12/01/32 1,655 Colorado Educational and Cultural Facilities Authority, 3/12 at 100.00 N/R 1,712,809 Charter School Revenue Bonds, Belle Creek Education Center, Series 2002A, 7.625%, 3/15/32 3,250 Colorado Educational and Cultural Facilities Authority, 5/12 at 102.00 N/R 3,417,505 Charter School Revenue Bonds, Montessori Peaks Building Foundation, Series 2002A, 8.000%, 5/01/32 1,775 Colorado Educational and Cultural Facilities Authority, Charter 6/11 at 100.00 Ba1 1,829,652 School Revenue Bonds, Weld County School District 6 - Frontier Academy, Series 2001, 7.375%, 6/01/31 3,380 Colorado Housing Finance Authority, Multifamily Project Bonds, 10/11 at 100.00 AAA 3,461,695 Class I, Series 2001A-1, 5.500%, 4/01/31 (Alternative Minimum Tax) 10,100 Colorado Springs, Colorado, Utility System Revenue Refunding 11/07 at 100.00 AA 10,310,686 and Improvement Bonds, Series 1997A, 5.375%, 11/15/26 63 Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO (continued) Denver City and County, Colorado, Airport System Revenue Bonds, Series 1996A: $ 19,150 5.750%, 11/15/16 - MBIA Insured 11/06 at 101.00 AAA $ 19,527,637 1,105 5.500%, 11/15/25 - MBIA Insured 11/06 at 101.00 AAA 1,125,454 2,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 2,107,700 Refunding Bonds, Series 2001A, 5.500%, 11/15/16 - FGIC Insured (Alternative Minimum Tax) 1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax 6/14 at 101.00 N/R 1,099,440 Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ 45,665 Total Colorado 47,024,671 - ------------------------------------------------------------------------------------------------------------------------------------ DELAWARE - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,835 Delaware Housing Authority, Multifamily Mortgage Revenue 7/12 at 100.00 Aa3 2,843,477 Bonds, Series 2001A, 5.400%, 7/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.0% (0.7% OF TOTAL INVESTMENTS) 6,000 District of Columbia, Revenue Bonds, Catholic University of 10/09 at 101.00 AAA 6,353,460 America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.6% (1.1% OF TOTAL INVESTMENTS) 2,000 Dade County, Florida, Water and Sewerage System Revenue 10/07 at 102.00 AAA 2,082,000 Bonds, Series 1997, 5.375%, 10/01/16 - FGIC Insured Orange County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Oak Glen Apartments, Series 2001G: 1,105 5.400%, 12/01/32 - FSA Insured 12/11 at 100.00 AAA 1,124,824 2,195 5.450%, 12/01/41 - FSA Insured 12/11 at 100.00 AAA 2,229,088 4,175 Pace Property Finance Authority Inc., Florida, Utility System 9/07 at 102.00 AAA 4,332,899 Improvement and Revenue Refunding Bonds, Series 1997, 5.250%, 9/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 9,475 Total Florida 9,768,811 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.3% (1.6% OF TOTAL INVESTMENTS) 5,000 Atlanta, Georgia, Airport General Revenue Bonds, Series 2000B, 1/10 at 101.00 AAA 5,215,650 5.625%, 1/01/30 - FGIC Insured (Alternative Minimum Tax) 2,700 Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station 12/11 at 101.00 N/R 2,997,648 Project, Series 2001, 7.900%, 12/01/24 3,740 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 A- 3,836,642 Revenue Anticipation Certificates, Northeast Georgia Health Services Inc., Series 2001, 5.500%, 5/15/31 2,000 Henry County Water and Sewerage Authority, Georgia, Revenue 2/10 at 101.00 AAA 2,148,680 Bonds, Series 2000, 5.625%, 2/01/30 (Pre-refunded 2/01/10) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 13,440 Total Georgia 14,198,620 - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.9% (0.6% OF TOTAL INVESTMENTS) 5,125 Hawaii, Highway Revenue Bonds, Series 2001, 7/11 at 100.00 AAA 5,509,426 5.375%, 7/01/21 (Pre-refunded 7/01/11) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 18.4% (12.4% OF TOTAL INVESTMENTS) 3,000 Chicago, Illinois, General Obligation Bonds, Neighborhoods 1/11 at 100.00 AAA 3,222,390 Alive 21 Program, Series 2001A, 5.500%, 1/01/31 (Pre-refunded 1/01/11) - FGIC Insured 285 Chicago, Illinois, General Obligation Refunding Bonds, 1/08 at 100.00 AAA 289,526 Series 1996B, 5.125%, 1/01/25 - FGIC Insured 8,375 Chicago, Illinois, Revenue Bonds, Midway Airport, 1/11 at 101.00 AAA 8,800,450 Series 2001A, 5.500%, 1/01/19 - FSA Insured (Alternative Minimum Tax) 1,750 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/08 at 102.00 AAA 1,821,697 5.250%, 1/01/28 - FGIC Insured 10,800 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1999, 1/09 at 101.00 AAA 11,352,636 5.375%, 1/01/30 (Pre-refunded 1/01/09) - FGIC Insured 4,950 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 AAA 5,090,580 Revenue Bonds, O'Hare International Airport, Series 2001A, 5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 64 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 8,610 Chicago, Illinois, Second Lien Wastewater Transmission Revenue 1/11 at 100.00 AAA $ 9,248,259 Bonds, Series 2001A, 5.500%, 1/01/26 (Pre-refunded 1/01/11) - AMBAC Insured 2,220 Chicago, Illinois, Second Lien Wastewater Transmission Revenue No Opt. Call AAA 2,427,970 Bonds, Series 2001A, 5.500%, 1/01/16 - MBIA Insured 10,000 Chicago, Illinois, Senior Lien Water Revenue Bonds, 11/11 at 100.00 AAA 10,597,500 Series 2001, 5.000%, 11/01/26 (Pre-refunded 11/01/11) - AMBAC Insured 1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,714,467 O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 - FGIC Insured 2,415 Illinois Finance Authority, General Obligation Debt 12/14 at 100.00 Aaa 2,497,545 Certificates, Local Government Program - Kankakee County, Series 2005B, 5.000%, 12/01/24 - AMBAC Insured 1,100 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/10 at 101.00 Baa2 1,169,795 Medical Center, Series 2000, 6.500%, 5/15/30 9,000 Illinois Health Facilities Authority, Revenue Bonds, Covenant 12/11 at 101.00 BBB 9,285,480 Retirement Communities Inc., Series 2001, 5.875%, 12/01/31 15,000 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa1 15,697,200 University Health System, Series 2001A, 6.125%, 7/01/31 5,000 Lake County School District 38, Big Hallow, Illinois, General No Opt. Call Aaa 2,331,650 Obligation Bonds, Series 2005, 0.000%, 2/01/22 - AMBAC Insured 7,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 7,424,760 Conference Center and Hotel Revenue Bonds, Series 2005A-1, 7.125%, 1/01/36 16,900 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/09 at 101.00 AAA 17,688,554 Bonds, McCormick Place Expansion Project, Series 1999A, 5.250%, 12/15/28 - FGIC Insured 2,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,280,860 Refunding Bonds, McCormick Place Expansion Project, Series 1998A, 5.500%, 6/15/29 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 110,070 Total Illinois 112,941,319 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 5.8% (3.9% OF TOTAL INVESTMENTS) Clark-Pleasant Community School Building Corporation, Indiana, First Mortgage Bonds, Series 2001: 1,255 5.000%, 7/15/21 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AAA 1,327,790 1,000 5.000%, 1/15/26 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AAA 1,058,000 Evansville Vanderburgh Public Library Lease Corporation, Indiana, First Mortgage Bonds, Series 2001: 2,000 5.750%, 7/15/18 (Pre-refunded 1/15/12) - MBIA Insured 1/12 at 100.00 AAA 2,192,260 2,750 5.125%, 1/15/24 (Pre-refunded 1/15/12) - MBIA Insured 1/12 at 100.00 AAA 2,926,990 3,405 Gary, Indiana, GNMA/FHA Mortgage Revenue Bonds, Windsor 11/11 at 102.00 AAA 3,442,319 Square Project, Series 2001A, 5.375%, 10/20/41 (Alternative Minimum Tax) 1,250 Hamilton Southeastern Cumberland Campus School Building 1/12 at 100.00 AAA 1,306,763 Corporation, Indiana, First Mortgage Bonds, Series 2001, 5.125%, 1/15/23 - AMBAC Insured 9,500 Indiana Educational Facilities Authority, Revenue Bonds, 2/11 at 100.00 AAA 10,072,375 Butler University, Series 2001, 5.500%, 2/01/26 - MBIA Insured 4,230 Indiana Finance Authority, Educational Facilities Revenue Bonds, 6/15 at 100.00 Aa3 4,338,584 Tudor Park Foundation, Series 2005B, 5.000%, 6/01/24 2,800 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,867,312 Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 - AMBAC Insured 2,650 Indianapolis, Indiana, Special Facility Revenue Bonds, 5/06 at 102.00 N/R 265,008 United Airlines Inc., Indianapolis Maintenance Center Project, Series 1995A, 6.500%, 11/15/31 (Alternative Minimum Tax) (5) 3,500 University of Southern Indiana, Student Fee Bonds, 10/11 at 100.00 Aaa 3,625,370 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 1,256,099 1,090 5.500%, 7/15/22 - AMBAC Insured 1/13 at 101.00 AAA 1,176,339 - ------------------------------------------------------------------------------------------------------------------------------------ 36,580 Total Indiana 35,855,209 - ------------------------------------------------------------------------------------------------------------------------------------ 65 Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 5.9% (4.0% OF TOTAL INVESTMENTS) $ 2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Great River 5/11 at 100.00 AAA $ 2,057,000 Medical Center, Series 2001, 5.250%, 5/15/31 - FSA Insured Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B: 28,000 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 29,776,599 3,950 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 4,290,648 - ------------------------------------------------------------------------------------------------------------------------------------ 33,950 Total Iowa 36,124,247 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 3.1% (2.1% OF TOTAL INVESTMENTS) 18,500 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AAA 19,251,470 Kentucky, Sewer and Drainage System Revenue Bonds, Series 2001A, 5.125%, 5/15/27 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 3.4% (2.3% OF TOTAL INVESTMENTS) 19,890 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 20,856,653 Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 1.1% (0.7% OF TOTAL INVESTMENTS) Maine State Housing Authority, Single Family Mortgage Purchase Bonds, Series 2001B: 4,610 5.400%, 11/15/21 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 4,723,775 1,800 5.500%, 11/15/32 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 1,836,954 - ------------------------------------------------------------------------------------------------------------------------------------ 6,410 Total Maine 6,560,729 - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 2.0% (1.3% OF TOTAL INVESTMENTS) 1,570 Maryland Community Development Administration, Insured 7/11 at 100.00 Aa2 1,604,446 Multifamily Housing Mortgage Loan Revenue Bonds, Series 2001B, 5.250%, 7/01/21 (Alternative Minimum Tax) 10,600 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 10,714,904 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 12,170 Total Maryland 12,319,350 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 1.7% (1.1% OF TOTAL INVESTMENTS) 5,000 Massachusetts Port Authority, Special Facilities Revenue 1/11 at 101.00 AAA 5,215,850 Bonds, Delta Air Lines Inc., Series 2001A, 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 5,150 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 5,218,804 System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 10,150 Total Massachusetts 10,434,654 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 9.1% (6.1% OF TOTAL INVESTMENTS) 15,000 Detroit City School District, Wayne County, Michigan, Unlimited No Opt. Call AAA 18,118,650 Tax School Building and Site Improvement Bonds, Series 2001A, 6.000%, 5/01/29 - FSA Insured 11,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/11 at 101.00 AA (4) 11,956,890 Spectrum Health, Series 2001A, 5.500%, 1/15/31 (Pre-refunded 7/15/11) 1,235 Michigan State Building Authority, Revenue Bonds, Facilities 10/11 at 100.00 AA- 1,321,030 Program, Series 2001I, 5.500%, 10/15/18 1,355 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 1,294,675 Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/23 3,485 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call AAA 3,719,331 Refunding Bonds, Sisters of Mercy Health Corporation, Series 1993P, 5.375%, 8/15/14 - MBIA Insured (ETM) 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 A+ 1,452,472 2,500 5.625%, 11/15/31 11/11 at 101.00 A+ 2,589,775 12,640 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 13,050,421 Revenue Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - MBIA Insured 2,395 Ypsilanti Community Utilities Authority, Washtenaw County, 5/11 at 100.00 AAA 2,500,572 Michigan, General Obligation Bonds, Sanitary Sewerage System 3, Series 2001, 5.100%, 5/01/31 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 51,010 Total Michigan 56,003,816 - ------------------------------------------------------------------------------------------------------------------------------------ 66 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.4% (0.3% OF TOTAL INVESTMENTS) $ 2,340 Dakota County Community Development Agency, Minnesota, 10/11 at 105.00 Aaa $ 2,446,119 GNMA Collateralized Multifamily Housing Revenue Bonds, Rose Apartments Project, Series 2001, 6.350%, 10/20/37 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.4% (0.2% OF TOTAL INVESTMENTS) 2,155 Mississippi Business Finance Corporation, GNMA Collateralized 5/09 at 103.00 AAA 2,195,514 Retirement Facility Mortgage Revenue Refunding Bonds, Aldersgate Retirement Community Inc. Project, Series 1999A, 5.450%, 5/20/34 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 2.5% (1.7% OF TOTAL INVESTMENTS) 1,825 Fenton, Missouri, Tax Increment Refunding and Improvement 10/12 at 100.00 N/R (4) 2,015,019 Revenue Bonds, Gravois Bluffs Redevelopment Project, Series 2002, 6.125%, 10/01/21 (Pre-refunded 10/01/12) Missouri Development Finance Board, Cultural Facilities Revenue Bonds, Nelson Gallery Foundation, Series 2001A: 3,335 5.250%, 12/01/19 - MBIA Insured 12/11 at 100.00 AAA 3,529,064 3,510 5.250%, 12/01/20 - MBIA Insured 12/11 at 100.00 AAA 3,714,247 3,695 5.250%, 12/01/21 - MBIA Insured 12/11 at 100.00 AAA 3,898,299 2,040 5.250%, 12/01/22 - MBIA Insured 12/11 at 100.00 AAA 2,148,079 - ------------------------------------------------------------------------------------------------------------------------------------ 14,405 Total Missouri 15,304,708 - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.9% (0.6% OF TOTAL INVESTMENTS) 5,000 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 B1 5,243,650 Stillwater Mining Company, Series 2000, 8.000%, 7/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.9% (0.6% OF TOTAL INVESTMENTS) Nebraska Investment Finance Authority, Single Family Housing Revenue Bonds, Series 2001D: 2,255 5.250%, 9/01/21 (Alternative Minimum Tax) 9/11 at 100.00 AAA 2,300,574 3,035 5.375%, 9/01/32 (Alternative Minimum Tax) 9/11 at 100.00 AAA 3,081,162 - ------------------------------------------------------------------------------------------------------------------------------------ 5,290 Total Nebraska 5,381,736 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 7.8% (5.3% OF TOTAL INVESTMENTS) 35,000 Clark County, Nevada, Limited Tax General Obligation Bank 7/10 at 100.00 AAA 36,970,497 Bonds, Series 2000, 5.500%, 7/01/30 - MBIA Insured 2,000 Director of Nevada State Department of Business and 1/10 at 100.00 AAA 2,072,920 Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured 4,000 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 4,168,560 Revenue Bonds, Las Vegas Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40 265 Nevada Housing Division, Single Family Mortgage Bonds, 4/08 at 101.50 Aaa 269,879 Senior Series 1998A-1, 5.300%, 4/01/18 (Alternative Minimum Tax) 4,290 University of Nevada, Revenue Bonds, Community College 1/12 at 100.00 AAA 4,508,447 System, Series 2001A, 5.250%, 7/01/26 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 45,555 Total Nevada 47,990,303 - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.2% (0.3% OF TOTAL INVESTMENTS) 2,000 New Hampshire Health and Education Authority, Hospital 10/11 at 101.00 Aaa 2,140,860 Revenue Bonds, Concord Hospital, Series 2001, 5.500%, 10/01/21 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.4% (1.6% OF TOTAL INVESTMENTS) 10,000 New Jersey Economic Development Authority, Water Facilities 11/12 at 101.00 Aaa 10,379,800 Revenue Bonds, American Water Company, Series 2002A, 5.250%, 11/01/32 - AMBAC Insured (Alternative Minimum Tax) 4,125 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 4,484,164 Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/13 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 14,125 Total New Jersey 14,863,964 - ------------------------------------------------------------------------------------------------------------------------------------ 67 Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 4.4% (2.9% OF TOTAL INVESTMENTS) $ 1,780 East Rochester Housing Authority, New York, GNMA Secured 10/11 at 101.00 AAA $ 1,827,366 Revenue Bonds, Gates Senior Housing Inc., Series 2001, 5.300%, 4/20/31 5,350 Metropolitan Transportation Authority, New York, Dedicated 11/11 at 100.00 AAA 5,695,824 Tax Fund Bonds, Series 2001A, 5.000%, 11/15/31 (Pre-refunded 11/15/11) - FGIC Insured 4,155 Monroe County Airport Authority, New York, Revenue Refunding No Opt. Call AAA 4,504,851 Bonds, Greater Rochester International Airport, Series 1999, 5.750%, 1/01/13 - MBIA Insured (Alternative Minimum Tax) New York City Municipal Water Finance Authority, New York, Water and Sewerage System Revenue Bonds, Fiscal Series 2001A: 3,610 5.500%, 6/15/33 (Pre-refunded 6/15/10) - MBIA Insured 6/10 at 101.00 AAA 3,888,656 5,710 5.500%, 6/15/33 (Pre-refunded 6/15/10) - FGIC Insured 6/10 at 101.00 AAA 6,150,755 2,500 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AAA 2,720,925 Series 2002G, 5.625%, 8/01/20 - MBIA Insured 2,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- 2,125,060 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 25,105 Total New York 26,913,437 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.1% (0.7% OF TOTAL INVESTMENTS) Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds, DBA Carolinas Healthcare System, Series 2005A: 1,750 4.875%, 1/15/32 1/15 at 100.00 AA 1,748,338 3,000 5.000%, 1/15/45 1/15 at 100.00 AA 3,028,680 1,800 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call A3 1,921,374 Revenue Bonds, Series 2003A, 5.500%, 1/01/13 - ------------------------------------------------------------------------------------------------------------------------------------ 6,550 Total North Carolina 6,698,392 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 2.3% (1.5% OF TOTAL INVESTMENTS) 2,370 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/08 at 101.50 AAA 2,411,712 Securities Program Residential Mortgage Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 - FSA Insured (Alternative Minimum Tax) 7,600 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 7,853,308 Revenue Bonds, Bay Shore Power, 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 1,941,714 1,775 5.000%, 12/01/23 - FGIC Insured 12/11 at 100.00 AAA 1,839,947 - ------------------------------------------------------------------------------------------------------------------------------------ 13,615 Total Ohio 14,046,681 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.4% (0.3% OF TOTAL INVESTMENTS) 2,500 Oklahoma Development Finance Authority, Revenue Refunding 8/09 at 101.00 AAA 2,660,075 Bonds, Hillcrest Healthcare System, Series 1999A, 5.625%, 8/15/29 (Pre-refunded 8/15/09) - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 2.5% (1.7% OF TOTAL INVESTMENTS) 4,700 Oregon Health, Housing, Educational and Cultural Facilities 11/11 at 101.00 AAA 4,933,214 Authority, Revenue Bonds, PeaceHealth Project, Series 2001, 5.250%, 11/15/21 - AMBAC Insured 10,000 Oregon Housing and Community Services Department, 7/10 at 100.00 Aaa 10,260,200 Multifamily Housing Revenue Bonds, Series 2000A, 6.050%, 7/01/42 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 14,700 Total Oregon 15,193,414 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 1.9% (1.3% OF TOTAL INVESTMENTS) Allegheny County Hospital Development Authority, Pennsylvania, Revenue Bonds, West Penn Allegheny Health System, Series 2000B: 2,000 9.250%, 11/15/22 11/10 at 102.00 Ba3 2,382,820 2,000 9.250%, 11/15/30 11/10 at 102.00 Ba3 2,381,000 3,500 Pennsylvania Economic Development Financing Authority, 7/06 at 100.00 B+ 3,512,950 Senior Lien Resource Recovery Revenue Bonds, Northampton Generating Project, Series 1994A, 6.600%, 1/01/19 (Alternative Minimum Tax) 68 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA (continued) $ 3,205 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA $ 3,517,007 Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded 8/01/12) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 10,705 Total Pennsylvania 11,793,777 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.6% (1.1% OF TOTAL INVESTMENTS) 2,185 Greenville County, South Carolina, Special Source Revenue 4/11 at 101.00 AAA 2,337,491 Bonds, Road Improvement Project, Series 2001, 5.500%, 4/01/21 - AMBAC Insured 6,850 South Carolina Transportation Infrastructure Bank, Revenue 10/11 at 100.00 Aaa 7,421,085 Bonds, Series 2001A, 5.500%, 10/01/22 (Pre-refunded 10/01/11) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 9,035 Total South Carolina 9,758,576 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.3% (0.9% OF TOTAL INVESTMENTS) 5,210 Memphis-Shelby County Airport Authority, Tennessee, 3/11 at 100.00 AAA 5,486,599 Airport Revenue Bonds, Series 2001A, 5.500%, 3/01/14 - FSA Insured (Alternative Minimum Tax) 1,185 Tennessee Housing Development Agency, Homeownership 1/09 at 101.00 AA 1,206,117 Program Bonds, Series 1998-2, 5.350%, 7/01/23 (Alternative Minimum Tax) 1,290 Tennessee Housing Development Agency, Homeownership 7/11 at 100.00 AA 1,313,014 Program Bonds, Series 2001-3A, 5.200%, 7/01/22 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 7,685 Total Tennessee 8,005,730 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 18.0% (12.1% OF TOTAL INVESTMENTS) 1,125 Brushy Creek Municipal Utility District, Williamson County, 6/09 at 100.00 Aaa 1,155,814 Texas, Combination Unlimited Tax and Revenue Refunding Bonds, Series 2001, 5.125%, 6/01/26 - FSA Insured Collins and Denton Counties, Frisco, Texas, General Obligation Bonds, Series 2001: 1,910 5.000%, 2/15/20 - FGIC Insured 2/11 at 100.00 AAA 1,960,195 2,005 5.000%, 2/15/21 - FGIC Insured 2/11 at 100.00 AAA 2,070,223 3,850 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 4,034,069 Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 - FGIC Insured (Alternative Minimum Tax) 5,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise 9/14 at 100.00 N/R 5,409,000 Regional Health System, Series 2004A, 7.000%, 9/01/25 4,040 Harris County, Texas, Tax and Revenue Certificates of 8/11 at 100.00 AA+ 4,119,709 Obligation, Series 2001, 5.000%, 8/15/27 6,000 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA 6,871,140 Revenue Refunding Bonds, Series 2001B, 5.500%, 12/01/29 - MBIA Insured (ETM) 7,000 Houston, Texas, Subordinate Lien Airport System Revenue 7/08 at 101.00 AAA 7,218,890 Bonds, Series 1998B, 5.250%, 7/01/14 - FGIC Insured (Alternative Minimum Tax) Houston, Texas, Subordinate Lien Airport System Revenue Refunding Bonds, Series 2001A: 2,525 5.500%, 7/01/13 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 2,680,540 2,905 5.500%, 7/01/14 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 AAA 3,079,445 Jefferson County Health Facilities Development Corporation, 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 8,845,440 8,500 5.500%, 8/15/41 -AMBAC Insured 8/11 at 100.00 AAA 8,932,055 10,700 Laredo Independent School District, Webb County, Texas, 8/11 at 100.00 AAA 10,989,649 General Obligation Refunding Bonds, Series 2001, 5.000%, 8/01/25 2,500 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call AAA 2,630,175 Revenue Refunding Bonds, Houston Light and Power Company, Series 1997, 5.125%, 11/01/28 - AMBAC Insured (Alternative Minimum Tax) 1,540 Medina Valley Independent School District, Medina County, 2/11 at 100.00 Aaa 1,639,084 Texas, General Obligation Bonds, Series 2001, 5.250%, 2/15/26 (Pre-refunded 2/15/11) 5,430 Mineral Wells Independent School District, Pale Pinto and 2/08 at 100.00 Aaa 5,458,453 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 Corporation, 2/08 at 102.00 AAA 3,119,130 Revenue Bonds, Texas Health Resources System, Series 1997B, 5.375%, 2/15/26 - MBIA Insured 69 Nuveen Dividend Advantage Municipal Fund 3 (NZF) (continued) Portfolio of INVESTMENTS April 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 3,045 Port of Houston Authority, Harris County, Texas, General 10/11 at 100.00 AAA $ 3,199,747 Obligation Port Improvement Bonds, Series 2001B, 5.500%, 10/01/17 - FGIC Insured (Alternative Minimum Tax) 10,715 Texas Department of Housing and Community Affairs, 7/11 at 100.00 AAA 11,078,131 Residential Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33 (Alternative Minimum Tax) 15,700 Texas Water Development Board, Senior Lien State Revolving 1/07 at 100.00 AAA 15,834,863 Fund Revenue Bonds, Series 1996B, 5.125%, 7/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ 105,990 Total Texas 110,325,752 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.9% (0.6% OF TOTAL INVESTMENTS) Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E: 1,935 5.200%, 1/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- 1,944,249 605 5.500%, 1/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 617,076 Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1: 2,435 4.950%, 7/01/18 (Alternative Minimum Tax) 7/11 at 100.00 Aa2 2,438,141 620 5.300%, 7/01/23 (Alternative Minimum Tax) 7/11 at 100.00 AA- 620,980 - ------------------------------------------------------------------------------------------------------------------------------------ 5,595 Total Utah 5,620,446 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS) 7,000 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 77.58 BB- 4,749,990 Bonds, Route 895 Connector Toll Road, Series 1998B, 0.000%, 8/15/13 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 15.9% (10.7% OF TOTAL INVESTMENTS) Bellingham Housing Authority, Washington, Housing Revenue Bonds, Varsity Village Project, Series 2001A: 1,000 5.500%, 12/01/27 - MBIA Insured 12/11 at 100.00 Aaa 1,066,300 2,000 5.600%, 12/01/36 - MBIA Insured 12/11 at 100.00 Aaa 2,142,500 1,500 Grays Harbor County Public Utility District 1, Washington, 1/11 at 100.00 AAA 1,562,775 Electric System Revenue Bonds, Series 2001, 5.125%, 1/01/22 - AMBAC Insured 2,475 Klickitat County Public Utility District 1, Washington, 12/11 at 100.00 AAA 2,529,945 Electric Revenue Bonds, Series 2001B, 5.000%, 12/01/26 - AMBAC Insured 12,955 Port of Seattle, Washington, Passenger Facility Charge 12/08 at 101.00 AAA 13,396,247 Revenue Bonds, Series 1998B, 5.300%, 12/01/16 - AMBAC Insured (Alternative Minimum Tax) Port of Seattle, Washington, Revenue Bonds, Series 2001B: 2,535 5.625%, 4/01/18 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AAA 2,688,976 16,000 5.100%, 4/01/24 - FGIC Insured (Alternative Minimum Tax) 10/08 at 100.00 AAA 16,140,160 2,090 Public Utility District 1, Benton County, Washington, Electric 11/11 at 100.00 AAA 2,268,549 Revenue Refunding Bonds, Series 2001A, 5.625%, 11/01/15 - FSA Insured 5,680 Seattle, Washington, Municipal Light and Power Revenue 3/11 at 100.00 AAA 6,024,378 Refunding and Improvement Bonds, Series 2001, 5.500%, 3/01/18 - FSA Insured 4,530 Tacoma, Washington, Solid Waste Utility Revenue Refunding 12/11 at 100.00 AAA 4,753,873 Bonds, Series 2001, 5.250%, 12/01/21 - AMBAC Insured 3,720 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aaa 3,998,070 Bonds, Children's Hospital and Regional Medical Center, Series 2001, 5.375%, 10/01/18 (Pre-refunded 10/01/11) - AMBAC Insured Washington State Healthcare Facilities Authority, Revenue Bonds, Good Samaritan Hospital, Series 2001: 5,480 5.500%, 10/01/21 - RAAI Insured 10/11 at 101.00 AA 5,784,195 25,435 5.625%, 10/01/31 - RAAI Insured 10/11 at 101.00 AA 26,826,548 Washington State Healthcare Facilities Authority, Revenue Bonds, Group Health Cooperative of Puget Sound, Series 2001: 3,005 5.375%, 12/01/17 - AMBAC Insured 12/11 at 101.00 AAA 3,174,632 2,915 5.375%, 12/01/18 - AMBAC Insured 12/11 at 101.00 AAA 3,076,141 2,250 Washington, Certificates of Participation, Washington 7/09 at 100.00 AAA 2,337,030 Convention and Trade Center, Series 1999, 5.250%, 7/01/14 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 93,570 Total Washington 97,770,319 - ------------------------------------------------------------------------------------------------------------------------------------ 70 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 4.5% (3.0% OF TOTAL INVESTMENTS) Appleton, Wisconsin, Waterworks Revenue Refunding Bonds, Series 2001: $ 3,705 5.375%, 1/01/20 - FGIC Insured 1/12 at 100.00 Aaa $ 3,944,676 1,850 5.000%, 1/01/21 - FGIC Insured 1/12 at 100.00 Aaa 1,918,080 1,735 Evansville Community School District, Dane, Green and Rock 4/11 at 100.00 AAA 1,869,116 Counties, Wisconsin, General Obligation Refunding Bonds, Series 2001, 5.500%, 4/01/20 (Pre-refunded 4/01/11) - FGIC Insured 12,250 La Crosse, Wisconsin, Pollution Control Revenue Refunding 12/08 at 102.00 AAA 12,930,610 Bonds, Dairyland Power Cooperative, Series 1997B, 5.550%, 2/01/15 - AMBAC Insured 4,000 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 AA- 4,291,720 Bonds, Froedtert and Community Health Obligated Group, Series 2001, 5.375%, 10/01/30 2,500 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 100.00 BBB+ 2,649,400 Bonds, Marshfield Clinic, Series 2001B, 6.000%, 2/15/25 - ------------------------------------------------------------------------------------------------------------------------------------ 26,040 Total Wisconsin 27,603,602 - ------------------------------------------------------------------------------------------------------------------------------------ $ 888,495 Total Investments (cost $875,641,653) - 148.8% 913,725,017 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.0% 12,174,183 ------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.8)% (312,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 613,899,200 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) On December 9, 2002, UAL Corporation ("UAL"), the holding company of United Air Lines, Inc. filed for federal bankruptcy protection. The Adviser determined that it was likely that United would not remain current on their interest payment obligations with respect to the bonds previously held and thus the Fund had stopped accruing interest on its UAL bonds. N/R Not rated. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 71 Statement of ASSETS AND LIABILITIES April 30, 2006 (Unaudited)
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - ---------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value $1,365,689,434 $1,010,621,834 $1,050,320,041 $879,445,825 $672,175,824 $913,725,017 (cost $1,290,078,842, $947,766,169, $992,774,492, $825,790,358, $626,382,410 and $875,641,653, respectively) Cash -- -- -- 735,060 -- -- Receivables: Interest 21,431,602 17,454,437 16,532,495 13,238,737 11,512,954 15,400,071 Investments sold 18,402,720 10,506,472 50,000 521,843 1,787,269 1,042,269 Other assets 118,960 73,464 74,748 64,359 31,867 38,116 - ---------------------------------------------------------------------------------------------------------------------------------- Total assets 1,405,642,716 1,038,656,207 1,066,977,284 894,005,824 685,507,914 930,205,473 - ---------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Cash overdraft 4,126,524 865,919 2,632,979 -- 1,901,338 3,770,593 Payable for investments purchased 4,387,800 11,609,010 -- 4,387,800 646,626 -- Accrued expenses: Management fees 696,493 516,531 534,898 302,895 206,305 238,564 Other 277,762 203,875 213,108 157,893 114,753 151,801 Preferred share dividends payable 233,926 186,455 202,772 136,518 131,752 145,315 - ---------------------------------------------------------------------------------------------------------------------------------- Total liabilities 9,722,505 13,381,790 3,583,757 4,985,106 3,000,774 4,306,273 - ---------------------------------------------------------------------------------------------------------------------------------- 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 $ 916,920,211 $ 667,274,417 $ 683,393,527 $594,020,718 $460,507,140 $613,899,200 ================================================================================================================================== Common shares outstanding 59,914,073 43,065,903 45,540,872 39,267,491 29,314,839 40,315,941 ================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.30 $ 15.49 $ 15.01 $ 15.13 $ 15.71 $ 15.23 ================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ---------------------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 599,141 $ 430,659 $ 455,409 $ 392,675 $ 293,148 $ 403,159 Paid-in surplus 836,423,631 601,673,873 635,499,922 558,149,941 416,659,122 572,934,358 Undistributed (Over-distribution of) net investment income 3,535,291 4,235,570 2,384,259 2,329,322 3,309,471 2,612,522 Accumulated net realized gain (loss) from investments and derivative transactions 751,556 (1,921,350) (12,491,612) (20,506,687) (5,548,015) (134,203) Net unrealized appreciation (depreciation) of investments 75,610,592 62,855,665 57,545,549 53,655,467 45,793,414 38,083,364 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 916,920,211 $ 667,274,417 $ 683,393,527 $594,020,718 $460,507,140 $613,899,200 ================================================================================================================================== 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. 72 Statement of OPERATIONS Six Months Ended April 30, 2006 (Unaudited)
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $35,380,264 $27,251,067 $27,390,029 $22,933,983 $18,102,607 $23,554,686 - ---------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 4,237,182 3,137,478 3,247,266 2,731,292 2,103,608 2,834,450 Preferred shares - auction fees 594,400 444,248 471,514 366,174 273,898 387,101 Preferred shares - dividend disbursing agent fees 24,795 24,795 19,836 14,877 14,877 14,877 Shareholders' servicing agent fees and expenses 90,347 55,637 60,119 9,172 3,777 4,792 Custodian's fees and expenses 155,109 118,071 120,981 99,499 79,442 98,746 Directors'/Trustees' fees and expenses 13,913 11,143 10,750 8,484 6,965 9,538 Professional fees 29,828 28,302 17,538 30,430 17,237 20,329 Shareholders' reports - printing and mailing expenses 65,228 47,438 51,752 40,182 29,757 38,987 Stock exchange listing fees 11,066 7,971 8,411 7,270 2,373 1,692 Investor relations expense 42,983 32,706 33,433 28,328 23,297 28,102 Other expenses 29,482 30,133 26,761 17,819 18,307 18,438 - ---------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 5,294,333 3,937,922 4,068,361 3,353,527 2,573,538 3,457,052 Custodian fee credit (45,861) (20,076) (34,117) (53,889) (47,225) (21,192) Expense reimbursement -- -- -- (889,711) (993,573) (1,385,992) - ---------------------------------------------------------------------------------------------------------------------------------- Net expenses 5,248,472 3,917,846 4,034,244 2,409,927 1,532,740 2,049,868 - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income 30,131,792 23,333,221 23,355,785 20,524,056 16,569,867 21,504,818 - ---------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 753,431 (1,871,103) (4,362,308) 509,616 (638,762) 486,574 Change in net unrealized appreciation (depreciation) of investments (9,155,065) (4,462,030) (159,640) (5,005,406) (559,532) (2,406,533) - ---------------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) (8,401,634) (6,333,133) (4,521,948) (4,495,790) (1,198,294) (1,919,959) - ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (6,798,755) (5,112,619) (5,512,599) (4,341,625) (3,236,858) (4,509,060) From accumulated net realized gains (204,889) (119,969) -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (7,003,644) (5,232,588) (5,512,599) (4,341,625) (3,236,858) (4,509,060) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $14,726,514 $11,767,500 $13,321,238 $11,686,641 $12,134,715 $15,075,799 ==================================================================================================================================
See accompanying notes to financial statements. 73 Statement of CHANGES IN NET ASSETS (Unaudited)
PERFORMANCE PLUS (NPP) MUNICIPAL ADVANTAGE (NMA) MARKET OPPORTUNITY (NMO) ------------------------------ ------------------------------ ------------------------------- SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 4/30/06 10/31/05 4/30/06 10/31/05 4/30/06 10/31/05 - ---------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 30,131,792 $ 61,211,198 $ 23,333,221 $ 46,918,021 $ 23,355,785 $ 46,851,160 Net realized gain (loss) from investments 753,431 1,174,258 (1,871,103) 739,548 (4,362,308) 6,140,447 Net realized gain (loss) from forward swaps -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of investments (9,155,065) (16,746,198) (4,462,030) (10,417,790) (159,640) (18,854,854) Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- -- -- Distributions to Preferred shareholders: From net investment income (6,798,755) (9,513,192) (5,112,619) (6,994,789) (5,512,599) (7,453,196) From accumulated net realized gains (204,889) (69,318) (119,969) (47,587) -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 14,726,514 36,056,748 11,767,500 30,197,403 13,321,238 26,683,557 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (26,308,282) (56,600,807) (20,186,695) (43,068,628) (19,609,904) (41,760,989) From accumulated net realized gains (1,042,505) (904,764) (628,192) (641,084) -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (27,350,787) (57,505,571) (20,814,887) (43,709,712) (19,609,904) (41,760,989) - ---------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- 643,731 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- 643,731 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (12,624,273) (21,448,823) (8,403,656) (13,512,309) (6,288,666) (15,077,432) Net assets applicable to Common shares at the beginning of period 929,544,484 950,993,307 675,678,073 689,190,382 689,682,193 704,759,625 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $916,920,211 $929,544,484 $667,274,417 $675,678,073 $683,393,527 $689,682,193 ================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 3,535,291 $ 6,510,536 $ 4,235,570 $ 6,201,663 $ 2,384,259 $ 4,150,977 ================================================================================================================================== See accompanying notes to financial statements. 74 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 4/30/06 10/31/05 4/30/06 10/31/05 4/30/06 10/31/05 - ---------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 20,524,056 $ 41,783,665 $ 16,569,867 $ 33,182,825 $ 21,504,818 $ 42,749,145 Net realized gain (loss) from investments 509,616 (176,759) (638,762) 365,453 486,574 60,740 Net realized gain (loss) from forward swaps -- -- -- (5,034,851) -- -- Change in net unrealized appreciation (depreciation) of investments (5,005,406) (10,221,934) (559,532) 7,731,035 (2,406,533) 133,784 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- 3,532,408 -- -- Distributions to Preferred shareholders: From net investment income (4,341,625) (5,755,365) (3,236,858) (4,391,879) (4,509,060) (6,046,697) From accumulated net realized gains -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 11,686,641 25,629,607 12,134,715 35,384,991 15,075,799 36,896,972 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (17,552,569) (39,071,157) (14,885,679) (30,220,159) (18,623,724) (38,657,406) From accumulated net realized gains -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (17,552,569) (39,071,157) (14,885,679) (30,220,159) (18,623,724) (38,657,406) - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- 395,901 145,668 89,369 -- - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- 395,901 -- 89,369 -- - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (5,865,928) (13,441,550) (2,355,063) 5,310,500 (3,458,556) (1,760,434) Net assets applicable to Common shares at the beginning of period 599,886,646 613,328,196 462,862,203 457,551,703 617,357,756 619,118,190 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $594,020,718 $599,886,646 $460,507,140 $462,862,203 $613,899,200 $617,357,756 ================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 2,329,322 $ 3,699,460 $ 3,309,471 $ 4,862,141 $ 2,612,522 $ 4,240,488 ==================================================================================================================================
See accompanying notes to financial statements. 75 Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The 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 or certain U.S. territories. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles. Investment Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors/Trustees. When market 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, evaluations of anticipated cash flows or collateral and general market conditions. Prices of derivative investments are also provided by an independent pricing service approved by each Fund's Board of Directors/Trustees. If the pricing service is unable to supply a price for a municipal bond or derivative investment, each Fund may use a market price or fair market value quote provided by a major broker/dealer in such investments. If it is determined that the market price or fair market value for an investment are unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish a fair value for the investment. Exchange-listed securities are generally valued at the last sales price on the securities exchange on which such securities are primarily traded. Securities traded on a securities exchange for which there are no transactions on a given day or securities not listed on a securities exchange are valued at the mean of the closing bid and asked prices. Securities traded on Nasdaq are valued at the Nasdaq Official Closing Price. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued or delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At April 30, 2006, Performance Plus (NPP), Municipal Advantage (NMA) and Dividend Advantage (NAD) had outstanding when-issued/delayed delivery purchase commitments of $4,387,800, $11,609,010 and $4,387,800, respectively. 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. Investment income also includes paydown gains and losses, if any. Dividend income, if any, is recorded on the ex-dividend date. Professional Fees Professional fees presented in the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders. Federal Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal income tax, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. 76 Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to 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 U.S. generally accepted accounting principles. Preferred Shares The Funds have issued and outstanding Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Preferred shares are issued in more than one Series. The dividend rate paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at 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 ===========================================================================================================
Forward Swap Transactions The Funds are authorized to invest in certain derivative financial instruments. The Funds' use of forward interest rate swap transactions is intended to mitigate the negative impact that an increase in long-term interest rates could have on Common share net asset value. Forward interest rate swap transactions involve each Fund's agreement with the counterparty to pay, in the future, a fixed rate payment in exchange for the counterparty paying the Fund a variable rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the forward swap contract, and would increase or decrease in value based primarily on the extent to which long-term interest rates for bonds having a maturity of the swaps' termination date were to increase or decrease. The Funds may close out a contract prior to the effective date, at which point a realized gain or loss would be recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Each Fund intends, but is not obligated to, terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. To minimize such credit risk, all counterparties are required to pledge collateral daily (based on the daily valuation of each swap) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when any of the Funds have an unrealized loss on a swap contract, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate, either up or down, by at least the predetermined threshold amount. At April 30, 2006, the Funds did not have any forward swap contracts outstanding. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Indemnifications Under the Funds' organizational documents, their Officers and Director/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 77 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 2. FUND SHARES Transactions in Common 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 4/30/06 10/31/05 4/30/06 10/31/05 4/30/06 10/31/05 - -------------------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- -- 40,309 -- -- -- - -------------------------------------------------------------------------------------------------------------------------- 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 4/30/06 10/31/05 4/30/06 10/31/05 4/30/06 10/31/05 - -------------------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- -- 23,971 8,868 5,822 -- - --------------------------------------------------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments) during the six months ended April 30, 2006, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) - -------------------------------------------------------------------------------------------------------------- Purchases $38,547,208 $34,820,164 $61,670,017 $42,666,637 $3,486,748 $13,255,953 Sales and maturities 52,810,809 35,300,126 58,841,275 30,148,700 6,325,274 13,783,659 ==============================================================================================================
4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses, timing differences in recognizing taxable market discount and timing differences in recognizing certain gains and losses on investment transactions. At April 30, 2006, the cost of investments was 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 $1,289,315,652 $946,442,010 $992,488,553 $824,754,477 $630,103,294 $875,405,538 ==============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at April 30, 2006, 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 $78,459,332 $65,977,346 $63,897,742 $55,960,114 $48,116,623 $40,160,348 Depreciation (2,085,550) (1,797,522) (6,066,254) (1,268,766) (6,044,093) (1,840,869) - -------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $76,373,782 $64,179,824 $57,831,488 $54,691,348 $42,072,530 $38,319,479 ==============================================================================================================
78 The tax components of undistributed net investment income and net realized gains at October 31, 2005, the Funds' last tax 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 * $10,432,188 $8,492,542 $7,024,566 $5,873,482 $6,955,460 $7,219,217 Undistributed net ordinary income ** 4,065 154,403 192,454 -- 12,183 -- Undistributed net long-term capital gains 1,245,519 593,511 -- -- -- -- ================================================================================================================================ * Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on October 3, 2005, paid on November 1, 2005. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended October 31, 2005, 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 $66,204,330 $50,312,299 $49,472,483 $45,021,305 $34,591,779 $44,838,770 Distributions from net ordinary income ** 238,651 -- -- -- -- -- Distributions from net long-term capital gains 974,082 688,671 -- -- -- -- ================================================================================================================================ ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any.
At October 31, 2005, the Funds' last tax 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 DIVIDEND OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMO) (NAD) (NXZ) (NZF) - --------------------------------------------------------------------------- Expiration year: 2007 $ -- $ 1,724,693 $ -- $ -- 2008 -- 14,462,547 -- -- 2009 -- -- -- -- 2010 -- -- -- 620,777 2011 7,158,008 4,594,300 -- -- 2012 973,824 -- 246,691 -- 2013 -- 104,763 402,153 -- - --------------------------------------------------------------------------- Total $8,131,932 $20,886,303 $648,844 $620,777 =========================================================================== 79 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., and a specific fund-level component, based only on the amount of assets within each individual Fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows:
PERFORMANCE PLUS (NPP) MUNICIPAL ADVANTAGE (NMA) MARKET OPPORTUNITY (NMO) AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE - ---------------------------------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For the next $3 billion .3875 For net assets over $5 billion .3750 - ---------------------------------------------------------------------------------------------------------- DIVIDEND ADVANTAGE (NAD) DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF) AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE - ---------------------------------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 - ----------------------------------------------------------------------------------------------------------
The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of April 30, 2006, the complex-level fee rate was .1888%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE - ---------------------------------------------------------------------------------------------------------- For the first $55 billion .2000% For the next $1 billion .1800 For the next $1 billion .1600 For the next $3 billion .1425 For the next $3 billion .1325 For the next $3 billion .1250 For the next $5 billion .1200 For the next $5 billion .1175 For the next $15 billion .1150 For Managed Assets over $91 billion (2) .1400 - ---------------------------------------------------------------------------------------------------------- (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in the U.S. (2) With respect to the complex-wide Managed Assets over $91 billion, the fee rate or rates that will apply to such assets will be determined at a later date. In the unlikely event that complex-wide Managed Assets reach $91 billion prior to a determination of the complex-level fee rate or rates to be applied to Managed Assets in excess of $91 billion, the complex-level fee rate for such complex-wide Managed Assets shall be .1400% until such time as a different rate or rates is determined.
80 The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to their 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 or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent Directors/Trustees that enables Directors/Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds. For the first 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. 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. 81 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 6. 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 1, 2006, to shareholders of record on May 15, 2006, 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 $.0705 $.0755 $.0685 $.0715 $.0820 $.0770 ==============================================================================================================
82 Financial HIGHLIGHTS (Unaudited) 83 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations --------------------------------------------------------------------------- Distributions Distributions from Net from Beginning Investment Capital Common Net Income to Gains to Share Net Realized/ Preferred Preferred Net Asset Investment Unrealized Share- Share- Value Income Gain (Loss) holders+ holders+ Total ================================================================================================================= Performance Plus (NPP) - ----------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2006(a) $15.51 $ .50 $ (.14) $(.11) $ -- $ .25 2005 15.87 1.02 (.26) (.16) -- .60 2004 15.45 1.04 .42 (.07) -- 1.39 2003 15.38 1.07 .05 (.07) -- 1.05 2002 15.57 1.09 (.22) (.10) (.01) .76 2001 14.36 1.10 1.17 (.23) -- 2.04 Municipal Advantage (NMA) - ----------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2006(a) 15.70 .54 (.15) (.12) -- .27 2005 16.02 1.09 (.24) (.16) -- .69 2004 15.62 1.11 .41 (.08) -- 1.44 2003 15.41 1.13 .25 (.07) (.01) 1.30 2002 15.65 1.15 (.22) (.10) (.03) .80 2001 14.61 1.16 1.10 (.24) (.03) 1.99 Market Opportunity (NMO) - ----------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2006(a) 15.14 .51 (.09) (.12) -- .30 2005 15.48 1.03 (.29) (.16) -- .58 2004 15.11 1.03 .37 (.08) -- 1.32 2003 14.60 1.03 .50 (.08) -- 1.45 2002 15.24 1.11 (.70) (.11) (.01) .29 2001 14.45 1.16 .80 (.26) (.01) 1.69 Dividend Advantage (NAD) - ----------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2006(a) 15.28 .52 (.11) (.11) -- .30 2005 15.62 1.06 (.25) (.15) -- .66 2004 15.17 1.09 .46 (.07) -- 1.48 2003 14.94 1.10 .19 (.07) -- 1.22 2002 14.84 1.13 .01 (.10) -- 1.04 2001 13.59 1.16 1.21 (.24) -- 2.13 Dividend Advantage 2 (NXZ) - ----------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2006(a) 15.80 .57 (.04) (.11) -- .42 2005 15.63 1.13 .22 (.15) -- 1.20 2004 15.13 1.12 .51 (.07) -- 1.56 2003 14.89 1.16 .17 (.07) -- 1.26 2002 15.07 1.15 (.32) (.10) -- .73 2001(b) 14.33 .52 .88 (.09) -- 1.31 Dividend Advantage 3 (NZF) - ----------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2006(a) 15.32 .53 (.05) (.11) -- .37 2005 15.36 1.06 .01 (.15) -- .92 2004 14.74 1.06 .59 (.07) -- 1.58 2003 14.56 1.07 .10 (.07) -- 1.10 2002 14.47 1.03 .16 (.10) -- 1.09 2001(c) 14.33 .03 .14 -- -- .17 ================================================================================================================= Less Distributions ------------------------------------------- Net Offering Investment Capital Costs and Ending Income to Gains to Preferred Common Common Common Share Share Ending Share- Share- Underwriting Net Asset Market holders holders Total Discounts Value Value =========================================================================================================================== Performance Plus (NPP) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2006(a) $ (.44) $(.02) $ (.46) $ -- $15.30 $14.51 2005 (.94) (.02) (.96) -- 15.51 14.43 2004 (.97) -- (.97) -- 15.87 14.95 2003 (.95) (.03) (.98) -- 15.45 14.64 2002 (.90) (.04) (.94) (.01) 15.38 14.28 2001 (.83) -- (.83) -- 15.57 14.58 Municipal Advantage (NMA) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2006(a) (.47) (.01) (.48) -- 15.49 15.17 2005 (1.00) (.01) (1.01) -- 15.70 15.19 2004 (1.03) (.01) (1.04) -- 16.02 15.70 2003 (1.02) (.07) (1.09) -- 15.62 15.44 2002 (.94) (.10) (1.04) -- 15.41 14.66 2001 (.87) (.08) (.95) -- 15.65 14.85 Market Opportunity (NMO) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2006(a) (.43) -- (.43) -- 15.01 14.09 2005 (.92) -- (.92) -- 15.14 14.19 2004 (.95) -- (.95) -- 15.48 14.44 2003 (.94) -- (.94) -- 15.11 14.29 2002 (.91) (.02) (.93) -- 14.60 13.80 2001 (.87) (.03) (.90) -- 15.24 14.65 Dividend Advantage (NAD) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2006(a) (.45) -- (.45) -- 15.13 14.41 2005 (1.00) -- (1.00) -- 15.28 14.58 2004 (1.03) -- (1.03) -- 15.62 15.31 2003 (.99) -- (.99) -- 15.17 15.12 2002 (.94) -- (.94) -- 14.94 14.50 2001 (.88) -- (.88) -- 14.84 15.14 Dividend Advantage 2 (NXZ) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2006(a) (.51) -- (.51) -- 15.71 16.20 2005 (1.03) -- (1.03) -- 15.80 15.64 2004 (1.03) (.03) (1.06) -- 15.63 15.38 2003 (1.01) (.01) (1.02) -- 15.13 14.85 2002 (.91) (.01) (.92) .01 14.89 13.91 2001(b) (.45) -- (.45) (.12) 15.07 14.96 Dividend Advantage 3 (NZF) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2006(a) (.46) -- (.46) -- 15.23 15.10 2005 (.96) -- (.96) -- 15.32 14.41 2004 (.96) -- (.96) -- 15.36 14.50 2003 (.93) -- (.93) .01 14.74 13.80 2002 (.91) -- (.91) (.09) 14.56 13.53 2001(c) -- -- -- (.03) 14.47 15.07 =========================================================================================================================== Ratios/Supplemental Data --------------------------------------------------------------------------------- Before Credit/ After Credit/ Total Returns Reimbursement/Refund Reimbursement/Refund*** ------------------- ------------------------- ------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Based Ending Expenses Income to Expenses Income to on Net to Average Average to Average Average Based Common Assets Net Assets Net Assets Net Assets Net Assets on Share Net Applicable Applicable Applicable Applicable Applicable Portfolio Market Asset to Common to Common to Common to Common to Common Turnover Value** Value** Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ==================================================================================================================================== Performance Plus (NPP) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2006(a) 3.69% 1.58% $916,920 1.15%* 6.51%* 1.14%* 6.52%* 3% 2005 3.02 3.83 929,544 1.15 6.45 1.14 6.46 6 2004 9.10 9.30 950,993 1.17 6.69 1.17 6.70 11 2003 9.58 6.97 925,525 1.18 6.89 1.18 6.90 10 2002 4.51 5.03 921,376 1.18 7.11 1.17 7.12 11 2001 26.96 14.51 932,937 1.15 7.29 1.14 7.30 14 Municipal Advantage (NMA) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2006(a) 3.02 1.74 667,274 1.17* 6.95* 1.17* 6.96* 3 2005 3.29 4.42 675,678 1.17 6.81 1.16 6.82 8 2004 8.82 9.57 689,190 1.19 7.00 1.18 7.00 4 2003 13.17 8.71 671,147 1.21 7.27 1.20 7.27 7 2002 5.89 5.39 662,270 1.22 7.55 1.22 7.55 17 2001 23.35 13.97 672,673 1.23 7.60 1.22 7.61 18 Market Opportunity (NMO) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2006(a) 2.29 1.99 683,394 1.19* 6.80* 1.18* 6.81* 6 2005 4.70 3.78 689,682 1.19 6.66 1.18 6.67 7 2004 7.97 9.00 704,760 1.21 6.75 1.19 6.77 4 2003 10.62 10.24 687,955 1.25 6.94 1.25 6.94 9 2002 .49 2.03 664,914 1.24 7.50 1.24 7.51 13 2001 20.03 11.93 694,025 1.23 7.73 1.23 7.74 11 Dividend Advantage (NAD) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2006(a) 1.85 1.94 594,021 1.12* 6.56* .81* 6.87* 3 2005 1.77 4.27 599,887 1.17 6.48 .80 6.84 11 2004 8.37 10.06 613,328 1.14 6.69 .70 7.12 7 2003 11.41 8.41 595,266 1.35 6.78 .89 7.24 3 2002 2.01 7.26 586,045 1.25 7.24 .80 7.70 7 2001 27.35 16.03 581,089 1.26 7.56 .78 8.04 12 Dividend Advantage 2 (NXZ) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2006(a) 6.82 2.66 460,507 1.12* 6.74* .66* 7.19* 1 2005 8.58 7.83 462,862 1.12 6.66 .67 7.12 2 2004 11.16 10.67 457,552 1.14 6.87 .69 7.32 3 2003 14.39 8.67 443,101 1.17 7.20 .71 7.66 11 2002 (.81) 5.16 435,907 1.17 7.32 .70 7.79 9 2001(b) 2.75 8.39 441,308 1.13* 5.56* .63* 6.06* 5 Dividend Advantage 3 (NZF) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2006(a) 8.03 2.44 613,899 1.12* 6.54* .67* 7.00* 1 2005 6.11 6.09 617,358 1.13 6.39 .68 6.84 3 2004 12.45 11.10 619,118 1.15 6.64 .69 7.10 3 2003 9.04 7.82 594,154 1.17 6.80 .71 7.26 3 2002 (4.26) 7.20 586,799 1.17 6.78 .70 7.25 7 2001(c) .47 .98 583,100 .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: 2006(a) $479,000 $25,000 $72,856 2005 479,000 25,000 73,515 2004 479,000 25,000 74,634 2003 479,000 25,000 73,305 2002 479,000 25,000 73,089 2001 444,000 25,000 77,530 Municipal Advantage (NMA) - --------------------------------------------------------------------- Year Ended 10/31: 2006(a) 358,000 25,000 71,597 2005 358,000 25,000 72,184 2004 358,000 25,000 73,128 2003 358,000 25,000 71,868 2002 358,000 25,000 71,248 2001 358,000 25,000 71,974 Market Opportunity (NMO) - --------------------------------------------------------------------- Year Ended 10/31: 2006(a) 380,000 25,000 69,960 2005 380,000 25,000 70,374 2004 380,000 25,000 71,366 2003 380,000 25,000 70,260 2002 380,000 25,000 68,744 2001 380,000 25,000 70,660 Dividend Advantage (NAD) - --------------------------------------------------------------------- Year Ended 10/31: 2006(a) 295,000 25,000 75,341 2005 295,000 25,000 75,838 2004 295,000 25,000 76,977 2003 295,000 25,000 75,446 2002 295,000 25,000 74,665 2001 295,000 25,000 74,245 Dividend Advantage 2 (NXZ) - --------------------------------------------------------------------- Year Ended 10/31: 2006(a) 222,000 25,000 76,859 2005 222,000 25,000 77,124 2004 222,000 25,000 76,526 2003 222,000 25,000 74,899 2002 222,000 25,000 74,089 2001(b) 222,000 25,000 74,697 Dividend Advantage 3 (NZF) - --------------------------------------------------------------------- Year Ended 10/31: 2006(a) 312,000 25,000 74,191 2005 312,000 25,000 74,468 2004 312,000 25,000 74,609 2003 312,000 25,000 72,608 2002 312,000 25,000 72,019 2001(c) -- -- -- ===================================================================== * Annualized. ** Total Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. *** After custodian fee credit, expense reimbursement, and legal fee refund, 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 six months ended April 30, 2006. (b) For the period March 27, 2001 (commencement of operations) through October 31, 2001. (c) For the period September 25, 2001 (commencement of operations) through October 31, 2001. (c) For the period September 25, 2001 (commencement of operations) through October 31, 2001.
See accompanying notes to financial statements. 84-85 spread REINVEST AUTOMATICALLY EASILY AND CONVENIENTLY NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the 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 the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. Callout: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. 86 OTHER USEFUL INFORMATION QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the 12-month period ended June 30, 2005, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 450 Fifth Street NW, Washington, D.C. 20549. GLOSSARY OF TERMS USED IN THIS REPORT AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. AVERAGE EFFECTIVE MATURITY: The average of 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. MODIFIED DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund (including any MuniPreferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. BOARD OF DIRECTORS/TRUSTEES Robert P. Bremner Lawrence H. Brown Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Eugene S. Sunshine FUND MANAGER Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Company Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the period covered by this report. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 87 Nuveen Investments: SERVING Investors For GENERATIONS Photo of: 2 women looking at a photo album. Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS. Managing more than $145 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 fixed-income 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. FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. LEARN MORE ABOUT NUVEEN FUNDS AT WWW.NUVEEN.COM/CEF o Share prices o Fund details o Daily financial news o Investor education o Interactive planning tools Logo: NUVEEN Investments ESA-B-0406D ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6. SCHEDULE OF INVESTMENTS. See Portfolio of Investments in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. During this reporting period, the registrant's Board of Directors implemented a change to the procedures by which shareholders may recommend nominees to the registrant's board of directors by amending the registrant's by-laws to include a provision specifying the date by which shareholder nominations for election as director at a subsequent meeting must be submitted to the registrant. Shareholders must deliver or mail notice to the registrant not less than forty-five days nor more than sixty days prior to the first anniversary date of the date on which the registrant first mailed its proxy materials for the prior year's annual meeting; provided, however, if an only if the annual meeting is not scheduled to be held within a period that commences thirty days before the first anniversary date of the annual meeting for the preceding year and ends thirty days after such anniversary date (an annual meeting date outside such period being referred to as an "Other Annual Meeting Date" hereafter), the shareholder notice must be given no later than the close of business on the date forty-five days prior to such Other Annual Meeting Date or the tenth business day following the date such Other Annual Meeting Date is first publicly announced or disclosed. The shareholder's notice must be in writing and set forth the name, age, date of birth, business address, residence address and nationality of the person(s) being nominated and the class or series, number of all shares of the registrant owned of record or beneficially be each such person(s), any other information regarding such person required by Item 401 of Regulation S-K or Item 22 of Rule 14a-101 (Schedule 14A) under the Securities Exchange Act of 1934, as amended, any other information regarding the person(s) to be nominated that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitation of proxies for election of directors, and whether such shareholder believes any nominee is or will be an "interested person" (as that term is defined in the Investment Company Act of 1940, as amended) of the registrant or sufficient information to enable the registrant to make that determination and the written and signed consent of the person(s) to be nominated. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Municipal Market Opportunity Fund, Inc. ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: July 7, 2006 ------------------------------------------------------------------- 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 7, 2006 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: July 7, 2006 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 file002.txt CERTIFICATIONS CERTIFICATION 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; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 7, 2006 /s/ Gifford R. Zimmerman ------------------------- -------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) CERTIFICATION I, Stephen D. Foy, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen 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; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 7, 2006 /s/ Stephen D. Foy ------------------------- -------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) EX-99.906CERT 3 file003.txt CERTIFICATIONS Certification Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002; provided by the Chief Executive Officer and Chief Financial Officer, based on each such officer's knowledge and belief. The undersigned officers of Nuveen Municipal Market Opportunity Fund, Inc. (the "Fund"), certify that, to the best of each such officer's knowledge and belief: 1. The Form N-CSR of the Fund for the period ended April 30, 2006 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Date: July 7, 2006 ----------------------- /s/ Gifford R. Zimmerman --------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) /s/ Stephen D. Foy --------------------------------- Stephen D. Foy Vice President, Controller (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----