N-CSR 1 file001.txt NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-06040 --------------------- 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) Kevin J. McCarthy Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: October 31 ------------------ Date of reporting period: October 31, 2009 ------------------ 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. LOGO: NUVEEN INVESTMENTS Closed-End Funds Nuveen Investments Municipal Closed-End Funds IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Annual Report October 31, 2009 ------------------ ---------------- ------------------ ------------------- NUVEEN PERFORMANCE NUVEEN MUNICIPAL NUVEEN MUNICIPAL NUVEEN DIVIDEND PLUS MUNICIPAL ADVANTAGE MARKET OPPORTUNITY ADVANTAGE FUND, INC. FUND, INC. FUND, INC. MUNICIPAL FUND NPP NMA NMO NAD ------------------ ---------------- NUVEEN DIVIDEND NUVEEN DIVIDEND ADVANTAGE ADVANTAGE MUNICIPAL FUND 2 MUNICIPAL FUND 3 NXZ NZF OCTOBER 09 LIFE IS COMPLEX. Nuveen makes things e-simple. It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish. Free e-Reports right to your e-mail! WWW.INVESTORDELIVERY.COM If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS If you receive your Nuveen Fund dividends and statements directly from Nuveen. LOGO: NUVEEN INVESTMENTS Chairman's Letter to Shareholders [PHOTO OF ROBERT P. BREMNER] DEAR SHAREHOLDER, The financial markets in which your Fund operates continue to reflect the larger economic crosscurrents. The illiquidity that infected global credit markets over the last year continues to recede but there is concern about the impact of a reduction in official liquidity support programs. The major institutions that are the linchpin of the international financial system have strengthened their capital structures, but many still struggle with losses in their various portfolios. Global trends include increasing trade and concern about the ability of the U.S. government to address its substantial budgetary deficits. While the fixed-income and equity markets have recovered from the lows recorded in the first quarter of 2009, identifying those developments that will define the future is never easy, and rarely is it more difficult than at present. A fundamental component of a successful investment program is a commitment to remain focused on long-term investment goals even during periods of heightened market uncertainty. Another component is to re-evaluate investment disciplines and tactics and to confirm their validity following periods of extreme volatility and market dislocation, such as we have recently experienced. Your Board carried out an intensive review of investment performance with these objectives in mind during April and May of 2009 as part of the annual management contract renewal process. I encourage you to read the description of this process in the Annual Investment Management Agreement Approval Process section of this report. Confirming the appropriateness of a long term investment strategy is as important for our shareholders as it is for our professional investment managers. For that reason, I again encourage you to remain in communication with your financial consultant on this subject. In September 2009, Nuveen completed the refinancing at par of all the auction rate preferred shares issued by its taxable closed-end funds. On October 15, Nuveen announced the first successful offering of an issue of MuniFund Term Preferred Shares. This new form of preferred securities joins the Variable Rate Demand Preferred securities as vehicles for refinancing existing municipal fund auction rate preferred shares (ARPS). By the beginning of December 2009, six of the leveraged municipal closed-end funds had redeemed all of their outstanding ARPS. Nuveen remains committed to resolving the issues connected with outstanding auction rate preferred shares. Please consult the Nuveen web site for the most recent information on this issue and all recent developments on your Nuveen Funds at: www.nuveen.com. On behalf of the other members of your Fund's Board, we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Robert P. Bremner ----------------------------- Robert P. Bremner Chairman of the Board December 21, 2009 Nuveen Investments 1 Portfolio Managers' Comments 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) Portfolio managers Tom Spalding and Paul Brennan discuss U.S. economic and municipal market conditions, key investment strategies, and the twelve-month performance of these six national Funds. A 33-year veteran of Nuveen, Tom has managed NXZ since its inception in 2001 and NPP, NMA, NMO and NAD since 2003. With 20 years of industry experience, including twelve years at Nuveen, Paul assumed portfolio management responsibility for NZF in 2006. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE TWELVE-MONTH REPORTING PERIOD ENDED OCTOBER 31, 2009? During this reporting period, municipal bond prices generally rose as strong cash flows into municipal bond funds combined with tighter supply of new tax-exempt issuance to provide favorable supply and demand conditions. As the period began, there continued to be considerable downward pressure on the economy. In an effort to improve conditions, the Federal Reserve (Fed) lowered the fed funds rate to a target range of zero to 0.25% in December 2008, the lowest level on record. In February 2009, the federal government augmented its efforts to boost the economy by passing a $787 billion stimulus package, which joined the $700 billion financial industry rescue package it had passed in late 2008. In March 2009, the Fed announced that, in addition to maintaining the current rate, it would buy $300 billion in long-term Treasury securities in an effort to support private credit markets and up to an additional $750 billion in agency mortgage-backed securities to bolster the credit and housing markets. In recent months, the measures taken by the Fed and others to ease the economic recession have produced some incipient signs of improvement. In the third quarter of 2009, the U.S. economy, as measured by the U.S. gross domestic product (GDP) posted positive growth (2.8% annualized) for the first time since the second quarter of 2008. Housing prices also provided a bright spot between June and September 2009 by recording four consecutive months of positive returns, the first following three years of decline. At the same time, inflation remained muted, as the Consumer Price Index (CPI), reflecting a 14% drop in energy prices, fell 0.2% year-over-year as of October 2009. This marked the seventh straight month that consumer prices dropped from their levels of a year earlier, the longest such decline since 1954-1955. The core CPI (which excludes CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGERS AS OF THE DATE OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN. 2 Nuveen Investments food and energy) rose 1.7% over the year, within the Fed's unofficial objective of 2.0% or lower for this measure. However, the economy continued to be stressed by weakness in the labor markets. October 2009 marked the 22nd consecutive month of net job losses, with a total of 7.3 million jobs lost since the recession began in December 2007. This is the biggest decline since the Great Depression. The national unemployment rate for October 2009 was 10.2%, a 26-year high, up from 6.6% in October 2008. Municipal market conditions began to show general signs of improvement in mid-December 2008 and municipal bonds continued to improve throughout most of 2009. This trend was bolstered by the reduced supply of tax-exempt municipal debt in the marketplace, due in part to the introduction of the Build America Bond program in April 2009. Build America Bonds are a new class of taxable municipal debt created as part of the February 2009 economic stimulus package. These bonds offer municipal issuers a federal subsidy equal to 35% of the security's interest payments, and therefore provide issuers with an attractive alternative to traditional tax-exempt debt. As of October 31, 2009, taxable Build America Bonds issuance totaled $48.5 billion, accounting for almost 20% of new bonds issued in the municipal market during the period since their introduction. Over the twelve months ended October 31, 2009, tax-exempt municipal bond issuance nationwide totaled $404.5 billion, a drop of approximately 10% compared with the twelve-month period ended October 31, 2008. As mentioned earlier, demand for tax-exempt bonds was strong, especially on the part of individual investors and broker/dealers. The combination of lower tax-exempt supply and increased demand provided support for municipal bond prices. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING PERIOD? During the majority of this twelve-month period, the tax-exempt municipal bond market was characterized by strong demand, constrained supply of new tax-exempt bonds and generally improving valuations. In this environment, our trading activity continued to focus on finding relative value by taking a bottom-up approach to discover undervalued sectors and individual credits with the potential to perform well over the long term. In NPP, NMA, NMO, NAD and NXZ, we generally were purchasing investment-grade quality bonds offering good call protection. Many of the additions to the portfolios were in the health care sector, primarily bonds rated AA, A or BBB. While the overall supply of new tax-exempt bonds declined, supply was more plentiful in the health care sector because hospitals generally do not qualify for the Build America Bond program and so must continue to issue bonds in the tax-exempt municipal market. In addition, many hospitals were issuing fixed rate bonds during this period in order to refinance and retire outstanding debt that had initially been issued as variable rate debt. In NZF, our focus was on purchasing bonds with longer maturities in two categories: essential services and health care. In essential services, our purchases included bonds backing water and sewer projects, utilities, schools and roads. We also bought bonds in the health care sector, most of which were rated AA or A. Nuveen Investments 3 Cash for new purchases during this period was generated largely by maturing or called bonds. NZF also sold some bonds with shorter maturities, including pre-refunded holdings. While there was considerable issuance of Build America Bonds over the last half of this period, these bonds do not represent good investment opportunities for all these Funds because their interest payments are considered taxable income. All of these Funds continued to use inverse floating rate securities.(1) as a form of leverage for a variety of reasons, including duration management, income enhancement and total return enhancements. During the first part of the period, NZF also invested in additional types of derivative instruments(2) designed to help lengthen its duration. These derivatives were removed before the end of the reporting period. 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. AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE FOR PERIODS ENDED 10/31/09
1-YEAR 5-YEAR 10-YEAR ----------------------------------------------------------------------------------- NPP 21.20% 3.75% 6.54% NMA 23.89% 3.40% 6.54% NMO 18.30% 3.03% 5.71% NAD 25.78% 3.58% 7.24% NXZ 21.41% 4.72% N/A NZF 25.08% 4.42% N/A Standard & Poor's (S&P) National Municipal Bond Index(3) 14.15% 4.04% 5.61% Lipper General Leveraged Municipal Debt Funds Average(4) 26.02% 3.32% 6.02% -----------------------------------------------------------------------------------
For the twelve months ended October 31, 2009, the total returns on common share net asset value (NAV) for all six of these Funds exceeded the returns for the Standard & Poor's (S&P) National Municipal Bond Index. All of the Funds underperformed the Lipper General Leveraged Municipal Debt Funds Average. Key management factors that influenced the Funds' returns during this period included yield curve and duration positioning, credit exposure and sector allocation. In addition, leverage was an important positive factor affecting the Funds' performances over this period. The impact of leverage is discussed in more detail on page six. 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. (1) An inverse floating rate security, also known as an inverse floater, is a financial instrument designed to pay long-term tax-exempt interest at a rate that varies inversely with a short-term tax-exempt interest rate index. For the Nuveen Funds, the index typically used is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market Association Index or BMA). Inverse floaters, including those inverse floating rate securities in which the Funds invested during this reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in this Report sections of this report. (2) Each Fund may invest in derivative instruments such as forwards, futures, options and swap transactions. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, see the Portfolio of Investments, Financial Statements and Notes to Financial Statements sections of this report. (3) The Standard & Poor's (S&P) National Municipal Bond Index is an unleveraged, market value-weighted index designed to measure the performance of the investment-grade U.S. municipal bond market. This index does not reflect any initial or ongoing expenses and is not available for direct investment. (4) The Lipper General Leveraged Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 1-year, 54 funds; 5-year, 52 funds; and 10-year, 38 funds. Fund and Lipper returns assume reinvestment of dividends. You cannot invest directly in a Lipper Average. 4 Nuveen Investments During this period, yields on tax-exempt bonds generally declined and bond prices rose, especially at the longer end of the municipal yield curve. As a result, longer-term bonds generally outperformed credits with shorter maturities. In general, the greater a Fund's exposure to the longer part of the yield curve, the greater the positive impact on the Fund's return. Among these six Funds, NAD benefited from being the most heavily weighted in the longer part of the curve, while NMO's duration was slightly short of our target, which hampered its performance. As mentioned earlier, our duration strategies in NZF included using derivative positions during the first part of this period to synthetically extend its duration. These derivative positions performed well and had a positive impact on NZF's total return performance. While yield curve positioning and duration played important roles in performance, credit exposure was also a significant factor. As noted earlier, demand for municipal bonds increased among both institutional and individual investors during this period. This increase was driven by a variety of factors, including concerns about potential tax increases, the need to rebalance portfolio allocations and a growing appetite for additional risk. At the same time, the supply of new tax-exempt municipal securities declined. As investors bid up municipal bond prices, bonds rated BBB or below and non-rated bonds generally outperformed those rated AAA. In this environment, allocations of bonds rated BBB or below and non-rated bonds generally made positive relative contributions to the Funds' performances. Holdings that generally contributed positively to the Funds' performances included industrial development revenue (IDR), housing and health care bonds, as well as education, water and sewer, transportation and special tax bonds. Zero coupon bonds and credits backed by the 1998 master tobacco settlement agreement also posted strong returns. Pre-refunded bonds, which are often backed by U.S. Treasury securities and which had been one of the top performing segments of the municipal bond market over the past two years, performed especially poorly during this period. This underperformance can be attributed primarily to these bonds' shorter effective maturities and higher credit quality. As of October 31, 2009, NXZ and NMO had the heaviest weightings in pre-refunded bonds, while NAD had the smallest. Other market segments that detracted from relative performance included resource recovery, leasing and electric utility bonds. These were the only three revenue sectors that failed to outperform the overall municipal market during this period. Many general obligation bonds also failed to keep pace with the overall municipal market. All six Funds' returns were negatively impacted to varying degrees by their holdings of AMBAC-Insured bonds issued for the Las Vegas monorail project, that links various casinos on the Las Vegas strip. The project has struggled to build ridership and turn a profit, and proposals to extend the monorail to McCarran International Airport remained on hold. Nuveen Investments 5 IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE One important factor impacting the returns of these Funds relative to the comparative index was the Funds' use of financial leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total returns for common shareholders. However, use of leverage also can expose common shareholders to additional risk-- especially when market conditions are unfavorable. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when bond prices generally are rising. Over the early part of this period, leverage hampered the performance of the Funds using this strategy. However, leverage made a significant positive contribution to those Funds returns over much of 2009, which can be seen in their twelve-month performance shown on page four. RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE As noted in the last several shareholder reports, the auction rate preferred shares issued by many closed-end funds, including these Nuveen Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more auction rate preferred shares have been submitted for sale in their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely non-existent since late February 2008. This means that these auctions have "failed to clear," and that many, or all, of the auction rate preferred shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in auction rate preferred shares did not lower the credit quality of these shares, and auction rate preferred shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions, as calculated in accordance with the pre-established terms of the auction rate preferred shares. In the recent market, with short-term rates at multi-generational lows, those maximum rates also have been low. One continuing implication for common shareholders from the auction failures is that each Fund's cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund's common share earnings likely have been incrementally lower at times than they otherwise might have been. 6 Nuveen Investments As noted in past shareholder reports, the Funds' Board of Directors/Trustees authorized a plan to use tender option bonds (TOBs), also known as floating rate securities, to refinance a portion of the Funds' outstanding auction rate preferred shares. The amount of TOBs that a Fund may use varies according to the composition of each Fund's portfolio. Some Funds have a greater ability to use TOBs than others. As of October 31, 2009, some Funds have issued Variable Rate Demand Preferred Shares (VRDP), but these issuances have been limited since it has been difficult to find liquidity facilities on economically viable terms given the constrained credit environment. Some Funds also have issued MuniFund Term Preferred (MTP), a fixed-rate form of preferred stock with a mandatory redemption period of five years. However, the Funds cannot provide any assurance on when the remaining outstanding auction rate preferred shares might be redeemed. As of October 31, 2009, the amount of auction rate preferred securities redeemed by the Funds are as shown in the accompanying table. AUCTION RATE % OF ORIGINAL PREFERRED SHARES AUCTION RATE FUND REDEEMED PREFERRED SHARES -------------------------------------------------------------------------------- NPP $ 59,100,000 12.3% NMA $ 64,800,000 18.1% NMO $ 33,325,000 8.8% NAD $ 33,200,000 11.3% NXZ $ 222,000,000 100.0% NZF $ 75,050,000 24.1% -------------------------------------------------------------------------------- As noted in the past shareholder reports, all of NXZ's redemptions were achieved through the issuance of VRDP in conjunction with the proceeds from the creation of TOBs. VRDP is a new instrument designed to replace the auction rate preferred shares used as leverage in Nuveen closed-end funds. VRDP is offered only to qualified institutional buyers, defined pursuant to Rule 144A under the Securities Act of 1933. As of October 31, 2009, NXZ had issued $196 million of VRDP. As of October 31, 2009, 75 out of the 88 Nuveen closed-end municipal funds that had issued auction rate preferred shares have redeemed, at par, all or a portion of these shares. These redemptions bring the total amount of Nuveen's municipal closed-end funds' auction rate preferred share redemptions to approximately $2.4 billion of the original $11 billion outstanding. For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx. Nuveen Investments 7 Common Share Dividend and Share Price Information During the twelve-month reporting period ended October 31, 2009, NPP, NMA, NMO and NZF each had three monthly dividend increases, NAD had two increases and NXZ had one monthly dividend increase. Due to normal portfolio activity, common shareholders of the following Funds received net ordinary income distributions at the end of December 2008 as follows: NET ORDINARY INCOME FUND (PER SHARE) -------------------------------------------------------------------------------- NPP $ 0.0007 NMA $ 0.0021 NZF $ 0.0057 -------------------------------------------------------------------------------- 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 October 31, 2009, all of the Funds in this report had positive UNII balances for both tax and financial statement purposes. COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION Since the inception of the Funds' repurchase program, the Funds have not repurchased any of their outstanding common shares. 8 Nuveen Investments As of October 31, 2009, the Funds' common share prices were trading at discounts (-) to their common share NAVs as shown in the accompanying table. 10/31/09 TWELVE-MONTH AVERAGE FUND (-) DISCOUNT (-) DISCOUNT -------------------------------------------------------------------------------- NPP -7.16% -8.98% NMA -4.76% -4.93% NMO -1.99% -7.85% NAD -7.20% -7.60% NXZ -2.15% -5.90% NZF -5.71% -8.70% -------------------------------------------------------------------------------- Nuveen Investments 9 NPP Performance OVERVIEW | Nuveen Performance Plus Municipal Fund, Inc. as of October 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.48 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.52 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -7.16% -------------------------------------------------------------------------------- Market Yield 6.41% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.90% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 869,873 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.85 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.08 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 6/22/89) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 24.78% 21.20% -------------------------------------------------------------------------------- 5-Year 3.86% 3.75% -------------------------------------------------------------------------------- 10-Year 6.82% 6.54% -------------------------------------------------------------------------------- STATES (as a % of total investments) -------------------------------------------------------------------------------- Illinois 15.9% -------------------------------------------------------------------------------- California 10.5% -------------------------------------------------------------------------------- Colorado 5.4% -------------------------------------------------------------------------------- Ohio 5.1% -------------------------------------------------------------------------------- Florida 5.0% -------------------------------------------------------------------------------- New Jersey 5.0% -------------------------------------------------------------------------------- New York 4.4% -------------------------------------------------------------------------------- Texas 4.4% -------------------------------------------------------------------------------- Massachusetts 4.0% -------------------------------------------------------------------------------- Indiana 3.7% -------------------------------------------------------------------------------- Washington 3.5% -------------------------------------------------------------------------------- Michigan 3.2% -------------------------------------------------------------------------------- Pennsylvania 2.3% -------------------------------------------------------------------------------- Utah 2.2% -------------------------------------------------------------------------------- Wisconsin 2.0% -------------------------------------------------------------------------------- Louisiana 1.9% -------------------------------------------------------------------------------- South Carolina 1.9% -------------------------------------------------------------------------------- Minnesota 1.9% -------------------------------------------------------------------------------- Nevada 1.7% -------------------------------------------------------------------------------- Iowa 1.6% -------------------------------------------------------------------------------- Other 14.4% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 21.7% -------------------------------------------------------------------------------- Tax Obligation/Limited 16.0% -------------------------------------------------------------------------------- Tax Obligation/General 13.9% -------------------------------------------------------------------------------- Transportation 11.9% -------------------------------------------------------------------------------- Health Care 10.6% -------------------------------------------------------------------------------- Utilities 9.2% -------------------------------------------------------------------------------- Consumer Staples 6.3% -------------------------------------------------------------------------------- Other 10.4% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 43% AA 16% A 25% BBB 12% BB or Lower 1% N/R 3% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2) [BAR CHART] Nov $ 0.0605 Dec 0.0605 Jan 0.0605 Feb 0.0605 Mar 0.0645 Apr 0.0645 May 0.0680 Jun 0.0680 Jul 0.0680 Aug 0.0680 Sep 0.0720 Oct 0.0720 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 11.68 11.86 11.50 10.08 11.10 10.39 9.40 10.39 10.49 11.55 12.29 12.30 12.17 12.17 12.15 12.06 11.39 11.75 11.12 11.68 11.79 12.03 12.02 11.96 12.11 12.20 12.52 12.88 12.84 12.84 12.82 12.78 12.35 12.32 12.70 12.80 12.95 12.99 13.06 13.07 13.22 13.12 13.28 13.38 13.67 13.90 14.02 14.14 14.30 14.02 13.48 13.70 10/31/09 13.48 (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 2008 of $0.007 per share. 10 Nuveen Investments NMA Performance OVERVIEW | Nuveen Municipal Advantage Fund, Inc. as of October 31, 2009 CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 38% AA 23% A 20% BBB 14% BB or Lower 4% N/R 1% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2) [BAR CHART] Nov $ 0.0660 Dec 0.0660 Jan 0.0660 Feb 0.0660 Mar 0.0680 Apr 0.0680 May 0.0715 Jun 0.0715 Jul 0.0715 Aug 0.0715 Sep 0.0760 Oct 0.0760 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 11.60 12.09 11.45 10.07 10.45 9.60 8.88 10.31 10.15 10.95 12.20 11.96 11.84 12.12 12.75 12.33 11.15 12.12 11.19 11.60 11.79 11.92 11.70 11.86 12.01 12.35 12.32 12.62 12.80 12.91 12.79 12.95 12.69 12.80 12.64 12.79 13.00 13.18 13.21 13.38 12.89 12.83 13.17 13.24 13.67 13.81 14.23 14.24 14.37 14.30 13.53 13.80 10/31/09 13.41 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.41 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.08 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -4.76% -------------------------------------------------------------------------------- Market Yield 6.80% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 9.44% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 608,813 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.44 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 11.30 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 12/19/89) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 25.70% 23.89% -------------------------------------------------------------------------------- 5-Year 3.00% 3.40% -------------------------------------------------------------------------------- 10-Year 6.58% 6.54% -------------------------------------------------------------------------------- STATES (as a % of total investments) -------------------------------------------------------------------------------- California 11.6% -------------------------------------------------------------------------------- Illinois 10.1% -------------------------------------------------------------------------------- Louisiana 8.9% -------------------------------------------------------------------------------- Washington 8.9% -------------------------------------------------------------------------------- Texas 8.8% -------------------------------------------------------------------------------- New York 5.7% -------------------------------------------------------------------------------- Colorado 5.2% -------------------------------------------------------------------------------- Ohio 4.9% -------------------------------------------------------------------------------- Puerto Rico 3.1% -------------------------------------------------------------------------------- Florida 2.8% -------------------------------------------------------------------------------- Tennessee 2.5% -------------------------------------------------------------------------------- Nevada 2.3% -------------------------------------------------------------------------------- New Jersey 2.3% -------------------------------------------------------------------------------- Indiana 2.2% -------------------------------------------------------------------------------- South Carolina 2.1% -------------------------------------------------------------------------------- Wisconsin 1.8% -------------------------------------------------------------------------------- Massachusetts 1.6% -------------------------------------------------------------------------------- North Carolina 1.6% -------------------------------------------------------------------------------- Other 13.6% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 25.9% -------------------------------------------------------------------------------- Health Care 17.2% -------------------------------------------------------------------------------- Utilities 14.0% -------------------------------------------------------------------------------- Tax Obligation/Limited 11.3% -------------------------------------------------------------------------------- Tax Obligation/General 9.3% -------------------------------------------------------------------------------- Transportation 8.4% -------------------------------------------------------------------------------- Other 13.9% -------------------------------------------------------------------------------- (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. (2) The Fund paid shareholders a net ordinary income distribution in December 2008 of $0.0021 per share. Nuveen Investments 11 NMO Performance OVERVIEW | Nuveen Municipal Market Opportunity Fund, Inc. as of October 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.32 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.59 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -1.99% -------------------------------------------------------------------------------- Market Yield 6.67% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 9.26% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 619,319 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.41 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.72 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/21/90) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 23.67% 18.30% -------------------------------------------------------------------------------- 5-Year 4.41% 3.03% -------------------------------------------------------------------------------- 10-Year 6.29% 5.71% -------------------------------------------------------------------------------- STATES (as a % of total investments) -------------------------------------------------------------------------------- Texas 9.8% -------------------------------------------------------------------------------- Washington 9.7% -------------------------------------------------------------------------------- California 9.1% -------------------------------------------------------------------------------- Illinois 9.1% -------------------------------------------------------------------------------- Minnesota 5.2% -------------------------------------------------------------------------------- Ohio 4.7% -------------------------------------------------------------------------------- Colorado 4.4% -------------------------------------------------------------------------------- New Jersey 4.3% -------------------------------------------------------------------------------- South Carolina 3.9% -------------------------------------------------------------------------------- Puerto Rico 3.4% -------------------------------------------------------------------------------- Georgia 3.1% -------------------------------------------------------------------------------- Pennsylvania 2.9% -------------------------------------------------------------------------------- North Dakota 2.8% -------------------------------------------------------------------------------- New York 2.7% -------------------------------------------------------------------------------- Massachusetts 2.7% -------------------------------------------------------------------------------- Indiana 1.7% -------------------------------------------------------------------------------- Oregon 1.6% -------------------------------------------------------------------------------- North Carolina 1.6% -------------------------------------------------------------------------------- Michigan 1.6% -------------------------------------------------------------------------------- Louisiana 1.5% -------------------------------------------------------------------------------- Other 14.2% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 28.6% -------------------------------------------------------------------------------- Tax Obligation/General 14.5% -------------------------------------------------------------------------------- Transportation 13.4% -------------------------------------------------------------------------------- Health Care 11.2% -------------------------------------------------------------------------------- Tax Obligation/Limited 11.2% -------------------------------------------------------------------------------- Utilities 7.2% -------------------------------------------------------------------------------- Other 13.9% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 46% AA 19% A 24% BBB 8% BB or Lower 3% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Nov $ 0.0630 Dec 0.0630 Jan 0.0630 Feb 0.0630 Mar 0.0645 Apr 0.0645 May 0.0690 Jun 0.0690 Jul 0.0690 Aug 0.0690 Sep 0.0740 Oct 0.0740 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 11.37 11.63 11.15 9.86 10.15 9.50 9.03 9.71 9.94 10.87 11.35 11.27 11.32 11.54 11.78 11.75 10.83 11.36 10.59 10.96 11.23 11.27 11.20 11.25 11.43 11.69 11.79 11.97 12.10 12.26 12.22 12.10 11.84 11.84 11.89 11.90 11.99 12.11 12.37 12.56 12.79 12.84 12.82 12.84 13.25 13.30 13.40 13.32 13.54 13.63 12.92 13.38 10/31/09 13.32 (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 Investments NAD Performance OVERVIEW | Nuveen Dividend Advantage Municipal Fund as of October 31, 2009 CREDIT QUALITY (AS A % OF MUNICIPAL BONDS) [PIE CHART] AAA/U.S. Guaranteed 28% AA 27% A 27% BBB 9% BB or Lower 6% N/R 3% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Nov $ 0.0655 Dec 0.0655 Jan 0.0655 Feb 0.0655 Mar 0.0655 Apr 0.0655 May 0.0715 Jun 0.0715 Jul 0.0715 Aug 0.0715 Sep 0.0740 Oct 0.0740 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 10.68 11.23 10.71 9.36 10.30 8.94 8.46 9.75 9.73 10.46 11.39 11.25 11.07 11.30 11.60 11.53 10.81 11.30 10.35 10.74 10.86 11.22 11.01 10.98 11.25 11.49 11.80 12.11 12.20 12.50 12.50 12.44 12.13 12.28 12.24 12.32 12.50 12.58 12.67 12.64 12.73 12.54 12.75 12.84 13.41 13.63 13.96 13.89 13.94 13.65 13.04 13.19 10/31/09 12.89 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 12.89 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.89 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -7.20% -------------------------------------------------------------------------------- Market Yield 6.89% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 9.57% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 545,534 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.74 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 11.96 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 5/26/99) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 28.86% 25.78% -------------------------------------------------------------------------------- 5-Year 2.75% 3.58% -------------------------------------------------------------------------------- 10-Year 5.95% 7.24% -------------------------------------------------------------------------------- STATES (as a % of municipal bonds) -------------------------------------------------------------------------------- Illinois 20.1% -------------------------------------------------------------------------------- Washington 7.2% -------------------------------------------------------------------------------- Florida 7.1% -------------------------------------------------------------------------------- New York 5.5% -------------------------------------------------------------------------------- Louisiana 5.0% -------------------------------------------------------------------------------- Wisconsin 4.6% -------------------------------------------------------------------------------- New Jersey 4.6% -------------------------------------------------------------------------------- Pennsylvania 4.6% -------------------------------------------------------------------------------- California 4.3% -------------------------------------------------------------------------------- Texas 4.2% -------------------------------------------------------------------------------- Colorado 3.7% -------------------------------------------------------------------------------- Indiana 3.5% -------------------------------------------------------------------------------- Ohio 3.3% -------------------------------------------------------------------------------- Puerto Rico 3.3% -------------------------------------------------------------------------------- Michigan 2.7% -------------------------------------------------------------------------------- Rhode Island 2.4% -------------------------------------------------------------------------------- Other 13.9% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/Limited 19.6% -------------------------------------------------------------------------------- Health Care 19.2% -------------------------------------------------------------------------------- Tax Obligation/General 14.9% -------------------------------------------------------------------------------- Transportation 13.2% -------------------------------------------------------------------------------- U.S. Guaranteed 7.7% -------------------------------------------------------------------------------- Utilities 6.4% -------------------------------------------------------------------------------- Consumer Staples 6.0% -------------------------------------------------------------------------------- Other 13.0% -------------------------------------------------------------------------------- (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. Nuveen Investments 13 NXZ Performance OVERVIEW | Nuveen Dividend Advantage Municipal Fund 2 as of October 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 14.14 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.45 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -2.15% -------------------------------------------------------------------------------- Market Yield 6.62% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 9.19% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 425,253 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.82 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 8.62 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 22.63% 21.41% -------------------------------------------------------------------------------- 5-Year 4.63% 4.72% -------------------------------------------------------------------------------- Since Inception 5.81% 6.55% -------------------------------------------------------------------------------- STATES (as a % of total investments) -------------------------------------------------------------------------------- Texas 17.7% -------------------------------------------------------------------------------- Illinois 9.0% -------------------------------------------------------------------------------- California 8.2% -------------------------------------------------------------------------------- Michigan 7.8% -------------------------------------------------------------------------------- Colorado 6.7% -------------------------------------------------------------------------------- New York 6.4% -------------------------------------------------------------------------------- New Mexico 3.9% -------------------------------------------------------------------------------- Louisiana 3.3% -------------------------------------------------------------------------------- Minnesota 3.2% -------------------------------------------------------------------------------- Alabama 3.2% -------------------------------------------------------------------------------- Florida 2.9% -------------------------------------------------------------------------------- Washington 2.8% -------------------------------------------------------------------------------- Kansas 2.7% -------------------------------------------------------------------------------- Massachusetts 2.4% -------------------------------------------------------------------------------- Pennsylvania 2.3% -------------------------------------------------------------------------------- Indiana 2.2% -------------------------------------------------------------------------------- Oregon 2.1% -------------------------------------------------------------------------------- Other 13.2% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 30.8% -------------------------------------------------------------------------------- Tax Obligation/Limited 18.5% -------------------------------------------------------------------------------- Health Care 14.5% -------------------------------------------------------------------------------- Transportation 12.6% -------------------------------------------------------------------------------- Consumer Staples 6.7% -------------------------------------------------------------------------------- Utilities 5.2% -------------------------------------------------------------------------------- Other 11.7% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 45% AA 11% A 24% BBB 10% BB or Lower 8% N/R 2% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Nov $ 0.0730 Dec 0.0730 Jan 0.0730 Feb 0.0730 Mar 0.0730 Apr 0.0730 May 0.0730 Jun 0.0730 Jul 0.0730 Aug 0.0730 Sep 0.0780 Oct 0.0780 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 12.10 12.40 11.45 10.42 11.20 10.19 9.62 10.78 11.75 11.90 12.66 12.63 12.53 12.96 13.07 12.71 11.69 12.57 11.60 11.69 11.70 11.97 12.24 12.45 12.46 12.39 12.76 12.96 13.08 12.91 12.98 13.15 12.85 12.66 12.67 12.76 12.75 12.86 12.96 13.13 13.13 12.89 13.24 13.43 13.79 14.09 14.25 14.19 14.37 14.30 13.75 14.45 10/31/09 14.14 (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 Investments NZF Performance OVERVIEW | Nuveen Dividend Advantage Municipal Fund 3 as of October 31, 2009 CREDIT QUALITY (AS A % OF MUNICIPAL BONDS) [PIE CHART] AAA/U.S. Guaranteed 41% AA 19% A 21% BBB 7% BB or Lower 3% N/R 9% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2) [BAR CHART] Nov $ 0.0665 Dec 0.0665 Jan 0.0665 Feb 0.0665 Mar 0.0680 Apr 0.0680 May 0.0735 Jun 0.0735 Jul 0.0735 Aug 0.0735 Sep 0.0745 Oct 0.0745 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 10.72 11.39 10.64 9.25 10.20 9.26 8.86 9.80 9.77 10.59 11.56 11.67 11.37 11.95 12.42 11.95 10.71 11.40 10.74 11.14 11.09 11.37 11.33 11.50 11.80 11.92 12.25 12.46 12.50 12.70 12.61 12.66 12.29 12.42 12.52 12.51 12.60 12.67 12.80 13.04 12.99 12.99 13.16 13.44 13.59 13.83 13.86 13.78 13.97 13.74 13.26 13.54 10/31/09 13.38 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.38 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.19 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -5.71% -------------------------------------------------------------------------------- Market Yield 6.68% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 9.28% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 573,088 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.56 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.33 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 33.89% 25.08% -------------------------------------------------------------------------------- 5-Year 4.71% 4.42% -------------------------------------------------------------------------------- Since Inception 5.00% 6.05% -------------------------------------------------------------------------------- STATES (as a % of municipal bonds) -------------------------------------------------------------------------------- Texas 13.3% -------------------------------------------------------------------------------- Washington 10.9% -------------------------------------------------------------------------------- Illinois 10.0% -------------------------------------------------------------------------------- California 8.9% -------------------------------------------------------------------------------- Michigan 6.4% -------------------------------------------------------------------------------- Colorado 4.4% -------------------------------------------------------------------------------- Iowa 4.1% -------------------------------------------------------------------------------- Indiana 3.9% -------------------------------------------------------------------------------- Wisconsin 3.0% -------------------------------------------------------------------------------- Louisiana 2.8% -------------------------------------------------------------------------------- New York 2.7% -------------------------------------------------------------------------------- New Jersey 2.6% -------------------------------------------------------------------------------- Kentucky 2.3% -------------------------------------------------------------------------------- Missouri 2.0% -------------------------------------------------------------------------------- Maryland 2.0% -------------------------------------------------------------------------------- Oregon 1.7% -------------------------------------------------------------------------------- Massachusetts 1.6% -------------------------------------------------------------------------------- Georgia 1.6% -------------------------------------------------------------------------------- Ohio 1.5% -------------------------------------------------------------------------------- Other 14.3% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 23.0% -------------------------------------------------------------------------------- Transportation 16.4% -------------------------------------------------------------------------------- Health Care 15.1% -------------------------------------------------------------------------------- Tax Obligation/General 9.8% -------------------------------------------------------------------------------- Tax Obligation/Limited 7.0% -------------------------------------------------------------------------------- Utilities 5.5% -------------------------------------------------------------------------------- Education and Civic Organizations 4.8% -------------------------------------------------------------------------------- Water and Sewer 4.5% -------------------------------------------------------------------------------- Other 13.9% -------------------------------------------------------------------------------- (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. (2) The Fund paid shareholders a net ordinary income distribution in December 2008 of $0.0057 per share. Nuveen Investments 15 NPP NMA NMO | Shareholder Meeting Report The annual meeting of shareholders was held on July 28, 2009, in the Lobby Conference Room, 333 West Wacker Drive, Chicago, IL 60606; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies. The meeting was subsequently adjourned to September 1, 2009, and then adjourned to October 13, 2009, for NPP, NMO, NAD and NZF; NPP and NMO additionally adjourned to November 24, 2009.
NPP NMA NMO ---------------------------------------------------------------------------------------------------------------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ---------------------------------------------------------------------------------------------------------------------------------- TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 31,433,513 6,796 21,719,305 5,474 22,525,244 5,444 Against 2,478,919 1,559 1,364,528 552 1,805,774 1,058 Abstain 1,145,311 76 725,135 49 823,954 117 Broker Non-Votes 9,426,679 2,217 5,479,006 713 6,932,141 2,588 ---------------------------------------------------------------------------------------------------------------------------------- Total 44,484,422 10,648 29,287,974 6,788 32,087,113 9,207 ================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 31,582,135 6,806 21,848,736 5,484 22,665,729 5,498 Against 2,348,702 1,545 1,200,988 542 1,661,673 1,004 Abstain 1,126,906 80 759,244 49 827,570 117 Broker Non-Votes 9,426,679 2,217 5,479,006 713 6,932,141 2,588 ---------------------------------------------------------------------------------------------------------------------------------- Total 44,484,422 10,648 29,287,974 6,788 32,087,113 9,207 ================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO INVESTING IN OTHER INVESTMENT COMPANIES. For 30,959,042 6,932 21,153,600 5,477 22,336,739 5,485 Against 2,910,753 1,419 1,406,742 549 1,807,293 1,017 Abstain 1,187,948 80 1,248,626 49 1,010,940 117 Broker Non-Votes 9,426,679 2,217 5,479,006 713 6,932,141 2,588 ---------------------------------------------------------------------------------------------------------------------------------- Total 44,484,422 10,648 29,287,974 6,788 32,087,113 9,207 ================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For 30,884,377 6,787 21,164,190 5,495 22,343,721 5,498 Against 2,987,051 1,549 1,471,801 531 1,878,626 1,004 Abstain 1,186,315 95 1,172,977 49 932,625 117 Broker Non-Votes 9,426,679 2,217 5,479,006 713 6,932,141 2,588 ---------------------------------------------------------------------------------------------------------------------------------- Total 44,484,422 10,648 29,287,974 6,788 32,087,113 9,207 ================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 30,507,444 6,809 21,045,007 5,479 22,253,938 5,483 Against 3,326,433 1,542 1,487,869 547 1,904,764 1,019 Abstain 1,223,866 80 1,276,092 49 996,270 117 Broker Non-Votes 9,426,679 2,217 5,479,006 713 6,932,141 2,588 ---------------------------------------------------------------------------------------------------------------------------------- Total 44,484,422 10,648 29,287,974 6,788 32,087,113 9,207 ================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 30,491,998 6,732 21,032,759 5,479 22,208,659 5,494 Against 3,317,878 1,550 1,496,433 547 1,930,067 1,008 Abstain 1,247,867 149 1,279,776 49 1,016,246 117 Broker Non-Votes 9,426,679 2,217 5,479,006 713 6,932,141 2,588 ---------------------------------------------------------------------------------------------------------------------------------- Total 44,484,422 10,648 29,287,974 6,788 32,087,113 9,207 ==================================================================================================================================
16 Nuveen Investments
NPP NMA NMO ---------------------------------------------------------------------------------------------------------------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ---------------------------------------------------------------------------------------------------------------------------------- APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 41,964,332 -- 28,092,357 -- 30,393,214 -- Withhold 2,074,388 -- 1,195,617 -- 1,515,329 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 44,038,720 -- 29,287,974 -- 31,908,543 -- ================================================================================================================================== Robert P. Bremner For 41,949,476 -- 28,079,352 -- 30,378,336 -- Withhold 2,089,244 -- 1,208,622 -- 1,530,207 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 44,038,720 -- 29,287,974 -- 31,908,543 -- ================================================================================================================================== Jack B. Evans For 41,938,440 -- 28,089,629 -- 30,372,691 -- Withhold 2,100,280 -- 1,198,345 -- 1,535,852 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 44,038,720 -- 29,287,974 -- 31,908,543 -- ================================================================================================================================== William C. Hunter For -- 9,292 -- 6,354 -- 8,287 Withhold -- 1,316 -- 434 -- 819 ---------------------------------------------------------------------------------------------------------------------------------- Total -- 10,608 -- 6,788 -- 9,106 ================================================================================================================================== David J. Kundert For 41,962,180 -- 28,084,949 -- 30,369,255 -- Withhold 2,076,540 -- 1,203,025 -- 1,539,288 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 44,038,720 -- 29,287,974 -- 31,908,543 -- ================================================================================================================================== William J. Schneider For -- 9,305 -- 6,354 -- 8,287 Withhold -- 1,303 -- 434 -- 819 ---------------------------------------------------------------------------------------------------------------------------------- Total -- 10,608 -- 6,788 -- 9,106 ================================================================================================================================== Judith M. Stockdale For 41,970,976 -- 28,045,115 -- 30,335,174 -- Withhold 2,067,744 -- 1,242,859 -- 1,573,369 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 44,038,720 -- 29,287,974 -- 31,908,543 -- ================================================================================================================================== Carole E. Stone For 41,956,447 -- 28,077,114 -- 30,371,410 -- Withhold 2,082,273 -- 1,210,860 -- 1,537,133 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 44,038,720 -- 29,287,974 -- 31,908,543 -- ================================================================================================================================== Terence J. Toth For 41,982,487 -- 28,088,649 -- 30,395,734 -- Withhold 2,056,233 -- 1,199,325 -- 1,512,809 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 44,038,720 -- 29,287,974 -- 31,908,543 -- ==================================================================================================================================
Nuveen Investments 17 NAD NXZ NZF | Shareholder Meeting Report (continued)
NAD NXZ NZF ---------------------------------------------------------------------------------------------------------------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ---------------------------------------------------------------------------------------------------------------------------------- TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 19,459,793 4,867 14,582,404 1,870 19,480,124 5,458 Against 1,129,444 482 773,999 -- 1,351,389 811 Abstain 626,016 280 413,083 -- 662,571 206 Broker Non-Votes 5,740,623 1,401 4,706,237 -- 6,694,239 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 26,955,876 7,030 20,475,723 1,870 28,188,323 6,475 ================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 19,543,191 4,910 14,633,866 1,870 19,608,162 5,506 Against 1,041,082 435 697,157 -- 1,239,829 764 Abstain 630,980 284 438,463 -- 646,096 205 Broker Non-Votes 5,740,623 1,401 4,706,237 -- 6,694,236 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 26,955,876 7,030 20,475,723 1,870 28,188,323 6,475 ================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO INVESTING IN OTHER INVESTMENT COMPANIES. For -- -- -- -- -- -- Against -- -- -- -- -- -- Abstain -- -- -- -- -- -- Broker Non-Votes -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- ================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For -- -- -- -- -- -- Against -- -- -- -- -- -- Abstain -- -- -- -- -- -- Broker Non-Votes -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- ================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- -- -- -- -- Against -- -- -- -- -- -- Abstain -- -- -- -- -- -- Broker Non-Votes -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- ================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- -- -- -- -- Against -- -- -- -- -- -- Abstain -- -- -- -- -- -- Broker Non-Votes -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- ==================================================================================================================================
18 Nuveen Investments
NAD NXZ NZF ---------------------------------------------------------------------------------------------------------------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class s a class as a class as a class ---------------------------------------------------------------------------------------------------------------------------------- APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For -- -- -- -- -- -- Withhold -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- ================================================================================================================================== Robert P. Bremner For 25,649,027 -- 19,764,333 -- 26,675,210 -- Withhold 1,127,346 -- 711,390 -- 1,367,751 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 26,776,373 -- 20,475,723 -- 28,042,961 -- ================================================================================================================================== Jack B. Evans For 25,641,454 -- 19,777,740 -- 26,713,383 -- Withhold 1,134,919 -- 697,983 -- 1,329,578 -- ---------------------------------------------------------------------------------------------------------------------------------- Total 26,776,373 -- 20,475,723 -- 28,042,961 -- ================================================================================================================================== William C. Hunter For -- 6,122 -- 1,870 -- 5,919 Withhold -- 875 -- -- -- 548 ---------------------------------------------------------------------------------------------------------------------------------- Total -- 6,997 -- 1,870 -- 6,467 ================================================================================================================================== David J. Kundert For -- -- -- -- -- -- Withhold -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- ================================================================================================================================== William J. Schneider For -- 6,122 -- 1,870 -- 5,919 Withhold -- 875 -- -- -- 548 ---------------------------------------------------------------------------------------------------------------------------------- Total -- 6,997 -- 1,870 -- 6,467 ================================================================================================================================== Judith M. Stockdale For -- -- -- -- -- -- Withhold -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- ================================================================================================================================== Carole E. Stone For -- -- -- -- -- -- Withhold -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- ================================================================================================================================== Terence J. Toth For -- -- -- -- -- -- Withhold -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- ==================================================================================================================================
Nuveen Investments 19 Report of Independent Registered Public Accounting Firm THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS NUVEEN PERFORMANCE PLUS MUNICIPAL FUND, INC. NUVEEN MUNICIPAL ADVANTAGE FUND, INC. NUVEEN MUNICIPAL MARKET OPPORTUNITY FUND, INC. NUVEEN DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NUVEEN DIVIDEND ADVANTAGE MUNICIPAL FUND 3 We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Performance Plus Municipal Fund, Inc., Nuveen Municipal Advantage Fund, Inc., Nuveen Municipal Market Opportunity Fund, Inc., Nuveen Dividend Advantage Municipal Fund, Nuveen Dividend Advantage Municipal Fund 2, and Nuveen Dividend Advantage Municipal Fund 3 (the "Funds") as of October 31, 2009, and the related statements of operations and cash flows (Nuveen Performance Plus Municipal Fund, Inc., Nuveen Dividend Advantage Municipal Fund, Nuveen Dividend Advantage Municipal Fund 2 and Nuveen Dividend Advantage Municipal Fund 3 only) for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2009, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Performance Plus Municipal Fund, Inc., Nuveen Municipal Advantage Fund, Inc., Nuveen Municipal Market Opportunity Fund, Inc., Nuveen Dividend Advantage Municipal Fund, Nuveen Dividend Advantage Municipal Fund 2, and Nuveen Dividend Advantage Municipal Fund 3 at October 31, 2009, the results of their operations and cash flows (Nuveen Performance Plus Municipal Fund, Inc., Nuveen Dividend Advantage Municipal Fund, Nuveen Dividend Advantage Municipal Fund 2 and Nuveen Dividend Advantage Municipal Fund 3 only) for the year then ended, changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with US generally accepted accounting principles. Ernst & Young LLP Chicago, Illinois December 28, 2009 20 Nuveen Investments NPP | Nuveen Performance Plus Municipal Fund, Inc. | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 0.1% (0.1% OF TOTAL INVESTMENTS) Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 1997A: $ 1,435 5.625%, 2/01/22 - FGIC Insured 1/10 at 100.00 Caa3 $ 500,184 1,505 5.375%, 2/01/27 - FGIC Insured 1/10 at 100.00 Caa3 521,573 ------------------------------------------------------------------------------------------------------------------------------ 2,940 Total Alabama 1,021,757 ------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.2% (0.1% OF TOTAL INVESTMENTS) 2,440 Northern Tobacco Securitization Corporation, Alaska, 6/14 at 100.00 Baa3 1,621,380 Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46 ------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.4% (0.9% OF TOTAL INVESTMENTS) 1,000 Arizona State Transportation Board, Highway Revenue 7/12 at 100.00 AAA 1,112,080 Bonds, 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 AA- 5,685,988 5,055 5.750%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) 7/12 at 100.00 AA- 5,307,295 ------------------------------------------------------------------------------------------------------------------------------ 11,420 Total Arizona 12,105,363 ------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.4% (0.3% OF TOTAL INVESTMENTS) 5,080 Independence County, Arkansas, Hydroelectric Power 5/13 at 100.00 N/R 2,738,120 Revenue Bonds, Series 2003, 5.350%, 5/01/28 - ACA Insured 1,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 Baa1 877,750 Washington Regional Medical Center, Series 2005A, 5.000%, 2/01/35 ------------------------------------------------------------------------------------------------------------------------------ 6,080 Total Arkansas 3,615,870 ------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 15.8% (10.5% OF TOTAL INVESTMENTS) 3,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 A- 2,652,895 Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 - AMBAC Insured 11,000 Anaheim Public Finance Authority, California, No Opt. Call AAA 6,258,340 Subordinate 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 4,533,440 3,175 5.375%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 3,549,460 3,365 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 3,124,234 Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/33 California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, Series 2006: 5,000 5.000%, 4/01/37 4/16 at 100.00 A+ 4,647,900 7,000 5.250%, 4/01/39 4/16 at 100.00 A+ 6,696,900 2,380 California Infrastructure Economic Development Bank, 10/11 at 101.00 A- 2,247,363 Revenue Bonds, J. David Gladstone Institutes, Series 2001, 5.250%, 10/01/34 3,500 California Pollution Control Financing Authority, 6/17 at 100.00 A3 3,327,135 Revenue Bonds, Pacific Gas and Electric Company, Series 2004C, 4.750%, 12/01/23 - FGIC Insured (Alternative Minimum Tax) 5,000 California, General Obligation Bonds, Series 2005, 3/16 at 100.00 A 4,778,550 5.000%, 3/01/31 6,435 California, General Obligation Refunding Bonds, Series No Opt. Call A 7,191,048 2002, 6.000%, 4/01/16 - AMBAC Insured 16,000 California, Various Purpose General Obligation Bonds, 6/17 at 100.00 A 14,977,920 Series 2007, 5.000%, 6/01/37 5,000 Coast Community College District, Orange County, 8/18 at 100.00 AAA 4,087,550 California, General Obligation Bonds, Series 2006C, 5.000%, 8/01/32 - FSA Insured 1,500 Golden State Tobacco Securitization Corporation, 6/17 at 100.00 BBB 996,585 California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47 10,000 Golden State Tobacco Securitization Corporation, 6/22 at 100.00 BBB 6,143,300 California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37 10,000 Golden State Tobacco Securitization Corporation, 6/13 at 100.00 AAA 11,701,900 California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13)
Nuveen Investments 21 NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 3,300 M-S-R Energy Authority, California, Gas Revenue Bonds, No Opt. Call A $ 3,523,509 Citigroup Prepay Contracts, Series 2009B, 6.500%, 11/01/39 1,000 Mt. Diablo Hospital District, California, Insured 12/09 at 100.00 N/R (4) 1,097,680 Hospital Revenue Bonds, Series 1993A, 5.125%, 12/01/23 - AMBAC Insured (ETM) 13,450 Ontario Redevelopment Financing Authority, San No Opt. Call A 15,121,432 Bernardino County, California, Revenue Refunding Bonds, Redevelopment Project 1, Series 1995, 7.200%, 8/01/17 - NPFG Insured 4,020 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 4,078,451 Residential Mortgage Revenue Refunding Bonds, Series 1991A, 7.150%, 2/01/10 (ETM) 2,325 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 3,068,465 Restructured Single Family Mortgage Revenue Bonds, Series 1986D, 8.000%, 4/01/16 (Alternative Minimum Tax) (ETM) 1,830 San Diego Public Facilities Financing Authority, 8/19 at 100.00 AA- 2,306,971 California, Water Utility Revenue Bonds, Tender Option Bond Trust 3504, 19.428%, 8/01/39 (IF) 2,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 A1 2,013,340 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 A 467,400 County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/35 - NPFG Insured 2,610 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 2,405,454 Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 4.750%, 6/01/23 14,160 Walnut Valley Unified School District, Los Angeles 8/11 at 103.00 AA- 16,052,342 County, California, General Obligation Refunding Bonds, Series 1997A, 7.200%, 2/01/16 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 144,550 Total California 137,049,564 ------------------------------------------------------------------------------------------------------------------------------ COLORADO - 8.1% (5.4% OF TOTAL INVESTMENTS) 5,240 Adams 12 Five Star Schools, Adams County, Colorado, 12/15 at 100.00 AAA 5,608,896 General Obligation Bonds, Series 2005, 5.000%, 12/15/24 - FSA Insured 3,000 Colorado Educational and Cultural Facilities Authority, 8/14 at 100.00 A 2,867,640 Charter School Revenue Bonds, Peak-to-Peak Charter School, Series 2004, 5.250%, 8/15/34 - SYNCORA GTY Insured 7,660 Colorado Health Facilities Authority, Revenue Refunding 1/10 at 100.00 A2 7,663,524 and Improvement Bonds, Boulder Community Hospital, Series 1994B, 5.875%, 10/01/23 - NPFG Insured 5,860 Colorado Health Facilities Authority, Revenue Refunding 9/11 at 100.00 AA (4) 6,324,639 Bonds, Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21 (Pre-refunded 9/01/11) 4,500 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 A+ 4,593,330 Refunding Bonds, Series 2001A, 5.500%, 11/15/16 - FGIC Insured (Alternative Minimum Tax) 20,000 Denver Convention Center Hotel Authority, Colorado, 12/13 at 100.00 N/R (4) 22,435,400 Senior Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33 (Pre-refunded 12/01/13) - SYNCORA GTY Insured 12,855 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 6,154,974 Bonds, Series 1997B, 0.000%,9/01/21 - NPFG Insured E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B: 15,700 0.000%, 9/01/32 - NPFG Insured No Opt. Call A 3,327,929 33,120 0.000%, 9/01/33 - NPFG Insured No Opt. Call A 6,514,042 18,500 E-470 Public Highway Authority, Colorado, Toll Revenue No Opt. Call A 3,006,250 Bonds, Series 2004A, 0.000%, 3/01/36 - NPFG Insured 755 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 810,213 Obligation Bonds, Series 2004, 5.000%, 12/15/22 - FSA Insured (UB) 1,330 University of Colorado Hospital Authority, Revenue 11/09 at 101.00 A3 1,240,637 Bonds, Series 1999A, 5.000%, 11/15/29 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ 128,520 Total Colorado 70,547,474 ------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.7% (1.2% OF TOTAL INVESTMENTS) 4,870 District of Columbia Tobacco Settlement Corporation, 5/11 at 101.00 BBB 4,882,272 Tobacco Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24 5,590 District of Columbia, General Obligation Bonds, Series 6/11 at 100.00 AAA 5,666,359 1999B, 5.500%, 6/01/13 - FSA Insured 5,000 Washington Convention Center Authority, District of 10/16 at 100.00 A 4,627,600 Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series 2007A, 4.500%, 10/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ 15,460 Total District of Columbia 15,176,231 ------------------------------------------------------------------------------------------------------------------------------
22 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 7.6% (5.0% 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 $ 1,551,195 1,805 5.800%, 1/01/36 - FSA Insured (Alternative Minimum Tax) 7/11 at 100.00 AAA 1,817,364 5,300 Escambia County Health Facilities Authority, Florida, No Opt. Call Aa1 5,882,841 Revenue Bonds, Ascension Health Credit Group, Series 2003A, 5.250%, 11/15/14 2,065 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 2,068,738 Revenue Bonds, Series 2000-11, 5.850%, 1/01/22 - FSA Insured (Alternative Minimum Tax) 5,340 Florida Housing Finance Corporation, Homeowner Mortgage 1/16 at 100.00 AA+ 5,213,816 Revenue Bonds, Series 2006-2, 4.950%, 7/01/37 (Alternative Minimum Tax) 10,050 Florida State Board of Education, Full Faith and Credit 6/10 at 101.00 AAA 10,412,303 Public Education Capital Outlay Refunding Bonds, Series 2000D, 5.750%, 6/01/22 7,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 Aa3 7,224,000 Bonds, Tampa International Airport, Series 2003A, 5.250%, 10/01/17 - NPFG Insured (Alternative Minimum Tax) 10,000 JEA, Florida, Electric System Revenue Bonds, Series 4/15 at 100.00 AAA 10,091,200 2006-3A, 5.000%, 10/01/41 - FSA Insured (UB) 10,750 Martin County Industrial Development Authority, Florida, 12/09 at 100.00 BB+ 10,752,688 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 2,590,714 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 A2 3,159,520 Miami International Airport, Series 2005A, 5.000%, 10/01/37 - SYNCORA GTY Insured (Alternative Minimum Tax) 1,700 Miami-Dade County, Florida, Beacon Tradeport Community 5/12 at 102.00 BBB- 1,570,630 Development District, Special Assessment Bonds, Commercial Project, Series 2002A, 5.625%, 5/01/32 - RAAI Insured 4,500 Port Saint Lucie. Florida, Special Assessment Revenue 7/17 at 100.00 A 3,876,480 Bonds, Southwest Annexation District 1B, Series 2007, 5.000%, 7/01/40 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 66,125 Total Florida 66,211,489 ------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.8% (0.6% OF TOTAL INVESTMENTS) 5,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call A 5,266,300 Series 1999A, 5.500%, 11/01/22 - FGIC Insured 2,000 George L. Smith II World Congress Center Authority, 7/10 at 101.00 A 2,002,520 Atlanta, Georgia, Revenue Refunding Bonds, Domed Stadium Project, Series 2000, 5.500%, 7/01/20 - NPFG Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 7,000 Total Georgia 7,268,820 ------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.1% (0.0% OF TOTAL INVESTMENTS) 320 Idaho Housing and Finance Association, Single Family 1/10 at 100.00 Aa3 326,333 Mortgage Bonds, Series 2000D, 6.200%, 7/01/14 (Alternative Minimum Tax) 275 Idaho Housing and Finance Association, Single Family 7/10 at 100.00 Aa2 277,602 Mortgage Bonds, Series 2000G-2, 5.950%, 7/01/25 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 595 Total Idaho 603,935 ------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 23.9% (15.9% OF TOTAL INVESTMENTS) 10,000 Chicago Board of Education, Illinois, Unlimited Tax No Opt. Call AA- 6,282,500 General Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1, 0.000%, 12/01/19 - FGIC Insured 10,000 Chicago Board of Education, Illinois, Unlimited Tax No Opt. Call AA- 5,908,600 General Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/20 - FGIC Insured Chicago, Illinois, General Obligation Bonds, City Colleges, Series 1999: 32,170 0.000%, 1/01/21 - FGIC Insured No Opt. Call AA- 18,795,001 32,670 0.000%, 1/01/22 - FGIC Insured No Opt. Call AA- 17,933,216 9,240 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1/10 at 100.00 A 9,243,973 1996A, 5.500%, 1/01/29 - NPFG Insured 1,665 Chicago, Illinois, Third Lien General Airport Revenue 1/16 at 100.00 A1 1,668,397 Bonds, O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 - FGIC Insured
Nuveen Investments 23 NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) DuPage County Forest Preserve District, Illinois, General Obligation Bonds, Series 2000: $ 8,000 0.000%, 11/01/18 No Opt. Call AAA $ 5,734,800 15,285 0.000%, 11/01/19 No Opt. Call AAA 10,362,160 2,000 Illinois Finance Authority, Revenue Bonds, Children's 8/18 at 100.00 AAA 1,997,880 Memorial Hospital, Series 2008A, 5.250%, 8/15/47 - AGC Insured (UB) 5,245 Illinois Finance Authority, Revenue Bonds, Loyola 7/17 at 100.00 Aa1 5,387,716 University of Chicago, Tender Option Bond Trust 1137, 9.072%, 7/01/46 (IF) 1,000 Illinois Finance Authority, Revenue Bonds, University of 7/14 at 100.00 Aa1 1,016,150 Chicago, Series 2004A, 5.000%, 7/01/34 4,590 Illinois Health Facilities Authority, FHA-Insured 8/13 at 100.00 AAA 4,563,011 Mortgage Revenue Refunding Bonds, Sinai Health System, Series 2003, 5.150%, 2/15/37 1,180 Illinois Health Facilities Authority, Revenue Bonds, 7/12 at 100.00 A- 1,181,628 Lake Forest Hospital, Series 2002A, 5.750%, 7/01/29 3,500 Illinois Health Facilities Authority, Revenue Bonds, 7/13 at 100.00 A- 3,516,765 Lake Forest Hospital, Series 2003, 6.000%, 7/01/33 4,580 Illinois Health Facilities Authority, Revenue Bonds, 8/10 at 102.00 Aaa 4,707,874 Midwest Care Center IX Inc., Series 2000, 6.250%, 8/20/35 2,225 Illinois Health Facilities Authority, Revenue Bonds, 1/10 at 101.00 BBB 2,282,138 Silver Cross Hospital and Medical Centers, Series 1999, 5.250%, 8/15/15 (Mandatory put 8/15/11) 7,250 Kane, Kendall, LaSalle, and Will Counties, Illinois, 12/13 at 57.71 AA- 3,355,010 Community College District 516, General Obligation Bonds, Series 2005E, 0.000%, 12/15/24 - FGIC Insured 6,000 McHenry County Conservation District, Illinois, General 2/11 at 100.00 Aa1 (4) 6,378,120 Obligation Bonds, Series 2001A, 5.625%, 2/01/21 (Pre-refunded 2/01/11) - FGIC Insured 5,000 Metropolitan Pier and Exposition Authority, Illinois, 6/12 at 101.00 AAA 5,042,300 Revenue Bonds, McCormick Place Expansion Project, Series 2002A, 5.250%, 6/15/42 - NPFG Insured 10,650 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 14,101,985 Revenue 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 - NPFG Insured No Opt. Call A 6,299,316 16,570 0.000%, 12/15/20 - NPFG Insured No Opt. Call A 9,779,945 23,550 0.000%, 12/15/22 - NPFG Insured No Opt. Call A 12,209,733 13,000 0.000%, 12/15/24 - NPFG Insured No Opt. Call A 5,919,030 5,100 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 5,621,832 Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1998A, 5.500%, 12/15/23 - FGIC Insured 5,180 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 6,073,964 Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1998A, 5.500%, 12/15/23 - FGIC Insured (ETM) 17,865 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call AAA 21,249,346 Lake, 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 4/10 at 102.00 AAA 6,218,682 Bonds, Villa Vianney, Series 1999A, 6.450%, 10/01/29 10,000 Will County Community High School District 210 No Opt. Call Aa3 5,138,700 Lincoln-Way, Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/23 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------ 279,005 Total Illinois 207,969,772 ------------------------------------------------------------------------------------------------------------------------------ INDIANA - 5.6% (3.7% OF TOTAL INVESTMENTS) 2,465 Danville Multi-School Building Corporation, Indiana, 7/11 at 100.00 A 2,580,535 First Mortgage Refunding Bonds, Series2001, 5.250%, 7/15/18 - AMBAC Insured 3,000 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 2,411,460 Revenue Bonds, Cardinal Health System, Series 2006, 5.250%, 8/01/36 14,000 Indiana Health Facility Financing Authority, Hospital 8/10 at 101.50 A+ (4) 14,770,700 Revenue Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30 (Pre-refunded 8/15/10) - NPFG Insured 750 Indiana Health Facility Financing Authority, Hospital 2/16 at 100.00 A+ 728,670 Revenue Bonds, Clarian Health Obligation Group, Series 2006B, 5.000%, 2/15/23 2,210 Indiana Health Facility Financing Authority, Hospital No Opt. Call AAA 2,524,284 Revenue Refunding Bonds, Columbus Regional Hospital, Series 1993, 7.000%, 8/15/15 - FSA Insured
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ INDIANA (continued) $ 4,320 Indiana Health Facility Financing Authority, Revenue 1/10 at 100.00 A (4) $ 4,335,163 Bonds, Ancilla Systems Inc. Obligated Group, Series 1997, 5.250%, 7/01/22 - NPFG Insured (ETM) 3,000 Indiana Health Facility Financing Authority, Revenue 3/17 at 100.00 BBB 2,861,280 Bonds, Community Foundation of Northwest Indiana, Series 2007, 5.500%, 3/01/37 2,000 Indiana Health Facility Financing Authority, Revenue 5/15 at 100.00 A 1,742,820 Bonds, Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 - AMBAC Insured Indiana Transportation Finance Authority, Highway Revenue Bonds, Series 2000: 1,285 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA+ (4) 1,354,608 6,715 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA+ (4) 7,078,752 3,105 Indiana University, Student Fee Revenue Bonds, Series 8/13 at 100.00 Aa1 3,354,518 2003O, 5.250%, 8/01/20 - FGIC Insured 1,000 Marion County Convention and Recreational Facilities 6/11 at 100.00 A 1,006,180 Authority, Indiana, Excise Taxes Lease Rental Revenue Refunding Senior Bonds, Series 2001A, 5.000%, 6/01/21 - NPFG Insured 2,395 Shelbyville Central Renovation School Building 7/15 at 100.00 AA+ 2,403,862 Corporation, Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/26 - NPFG Insured 1,800 Sunman Dearborn High School Building Corporation, 1/15 at 100.00 AA+ 1,882,476 Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/25 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 48,045 Total Indiana 49,035,308 ------------------------------------------------------------------------------------------------------------------------------ IOWA - 2.5% (1.6% OF TOTAL INVESTMENTS) 1,500 Iowa Finance Authority, Health Facility Revenue Bonds, 7/16 at 100.00 BB+ 1,250,745 Care Initiatives Project, Series 2006A, 5.500%, 7/01/21 Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C: 5,000 5.375%, 6/01/38 6/15 at 100.00 BBB 3,673,500 4,365 5.500%, 6/01/42 6/15 at 100.00 BBB 3,183,918 5,400 5.625%, 6/01/46 6/15 at 100.00 BBB 3,970,458 4,500 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 3,878,100 Revenue Bonds, Series 2005B, 5.600%, 6/01/34 5,000 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 5,391,000 Asset-Backed Revenue Bonds, Series 2001B, 5.600%, 6/01/35 (Pre-refunded 6/01/11) ------------------------------------------------------------------------------------------------------------------------------ 25,765 Total Iowa 21,347,721 ------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.5% (1.0% OF TOTAL INVESTMENTS) 3,790 Kansas Department of Transportation, Highway Revenue 3/14 at 100.00 AAA 4,097,672 Bonds, Series 2004A, 5.000%, 3/01/23 (UB) 5,790 Sedgwick County Unified School District 259, Wichita, 9/10 at 100.00 AA 5,815,592 Kansas, 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 3,220,992 General Obligation Bonds, Series 2001, 4.000%, 9/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------ 12,780 Total Kansas 13,134,256 ------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.9% (1.9% OF TOTAL INVESTMENTS) 600 East Baton Rouge Mortgage Finance Authority, Louisiana, 4/10 at 101.00 Aaa 600,462 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 A1 4,174,920 Bonds, Series 2004, 5.250%, 11/01/25 - NPFG Insured 4,650 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 A 4,563,138 Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/33 - NPFG 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 10,038,500 6,680 5.875%, 5/15/39 5/11 at 101.00 BBB 6,045,734 ------------------------------------------------------------------------------------------------------------------------------ 25,930 Total Louisiana 25,422,754 ------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.7% (0.4% OF TOTAL INVESTMENTS) 5,680 Portland, Maine, Airport Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 5,742,196 5.000%, 7/01/32 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 25 NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.4% (1.0% OF TOTAL INVESTMENTS) $ 7,720 Maryland Transportation Authority, Airport Parking 3/12 at 101.00 A2 $ 7,736,366 Revenue Bonds, Baltimore-Washington International Airport Passenger Facility, Series 2002B, 5.125%, 3/01/20 - AMBAC Insured (Alternative Minimum Tax) 4,380 Takoma Park, Maryland, Hospital Facilities Revenue No Opt. Call AAA 4,808,233 Refunding and Improvement Bonds, Washington Adventist Hospital, Series 1995, 6.500%, 9/01/12 - FSA Insured (ETM) ------------------------------------------------------------------------------------------------------------------------------ 12,100 Total Maryland 12,544,599 ------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 6.1% (4.0% 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 - NPFG Insured 2/12 at 100.00 A 3,870,960 5,625 5.125%, 2/01/34 - NPFG Insured 2/12 at 100.00 A 5,195,306 940 Massachusetts Educational Finance Authority, Student 12/09 at 101.00 AA 951,186 Loan Revenue Refunding Bonds, Series 2000G, 5.700%, 12/01/11 - NPFG Insured (Alternative Minimum Tax) 8,730 Massachusetts Health and Educational Facilities 10/15 at 100.00 AAA 8,892,989 Authority, Revenue Bonds, Berkshire Health System, Series 2005F, 5.000%, 10/01/19 - AGC Insured 500 Massachusetts Health and Educational Facilities 7/18 at 100.00 A3 454,360 Authority, Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.125%, 7/01/38 1,530 Massachusetts Health and Educational Facilities 1/10 at 100.50 A2 1,347,593 Authority, Revenue Bonds, Southcoast Health System Obligated Group, Series 1998A, 4.750%, 7/01/27 - NPFG Insured 5,745 Massachusetts Industrial Finance Agency, Resource 12/09 at 101.00 BBB 5,146,658 Recovery Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) 12,580 Massachusetts Turnpike Authority, Metropolitan Highway 1/10 at 100.00 A 11,866,337 System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - NPFG Insured 890 Massachusetts, General Obligation Bonds, Consolidated 11/12 at 100.00 AA (4) 995,465 Loan, 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 AA (4) 1,397,430 3,745 5.250%, 1/01/22 (Pre-refunded 1/01/13) - FGIC Insured 1/13 at 100.00 AA (4) 4,170,020 8,500 Route 3 North Transportation Improvements Association, 6/10 at 100.00 A (4) 8,769,620 Massachusetts, Lease Revenue Bonds, Series 2000, 5.375%, 6/15/33 (Pre-refunded 6/15/10) - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 54,040 Total Massachusetts 53,057,924 ------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 4.9% (3.2% OF TOTAL INVESTMENTS) 6,155 Birmingham City School District, Oakland County, 5/10 at 100.00 AAA 6,221,843 Michigan, 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 A 4,587,300 Revenue Bonds, Series 2005A, 5.000%, 7/01/35 - NPFG Insured 1,430 Michigan State Building Authority, Revenue Bonds, 10/11 at 100.00 A+ 1,442,169 Facilities Program, Series 2001I, 5.000%, 10/15/24 70 Michigan State Building Authority, Revenue Bonds, 10/11 at 100.00 A+ (4) 75,754 Facilities Program, Series 2001I, 5.000%, 10/15/24 (Pre-refunded 10/15/11) 5,000 Michigan State Building Authority, Revenue Refunding 10/13 at 100.00 A+ 5,019,450 Bonds, Facilities Program, Series 2003II, 5.000%, 10/15/29 - NPFG Insured 7,115 Michigan State Hospital Finance Authority, Hospital 3/13 at 100.00 A1 (4) 8,049,769 Revenue Refunding Bonds, Henry Ford Health System, Series 2003A, 5.500%, 3/01/16 (Pre-refunded 3/01/13) 3,000 Michigan Strategic Fund, Collateralized Limited 3/10 at 102.00 A 2,943,210 Obligation Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 - NPFG Insured (Alternative Minimum Tax) 3,050 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 2,692,052 Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,339,923 Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ MICHIGAN (continued) $ 10,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/09 at 100.50 A $ 10,081,800 Metropolitan Wayne County Airport, Series 1998A, 5.375%, 12/01/16 - NPFG Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 41,970 Total Michigan 42,453,270 ------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 2.9% (1.9% OF TOTAL INVESTMENTS) 3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 A (4) 3,165,030 Minnesota, Subordinate Airport Revenue Bonds, Series 2001C, 5.250%, 1/01/26 (Pre-refunded 1/01/11) - FGIC Insured 18,075 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 103.00 AAA 21,734,465 Sales Tax Revenue Refunding Bonds, Civic Center Project, Series 1996, 7.100%, 11/01/23 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------ 21,075 Total Minnesota 24,899,495 ------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.4% (0.9% OF TOTAL INVESTMENTS) 9,750 Mississippi Business Finance Corporation, Pollution 4/10 at 100.00 BBB 9,760,530 Control 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 AA 2,520,565 Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%, 9/01/24 (UB) ------------------------------------------------------------------------------------------------------------------------------ 12,225 Total Mississippi 12,281,095 ------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.7% (1.1% OF TOTAL INVESTMENTS) 6,350 Kansas City, Missouri, Airport Revenue Bonds, General 9/12 at 100.00 A+ 6,627,495 Improvement Projects, Series 2003B, 5.250%, 9/01/17 - FGIC Insured 1,845 Missouri Health and Educational Facilities Authority, 5/13 at 100.00 AA 1,921,660 Revenue Bonds, BJC Health System, Series 2003, 5.250%, 5/15/18 3,815 Missouri Health and Educational Facilities Authority, 6/11 at 101.00 AA- (4) 4,131,416 Revenue 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 10/13 at 100.00 AAA 2,009,100 Development 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 14,689,671 ------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.5% (0.4% OF TOTAL INVESTMENTS) 545 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100.00 AA+ 554,025 Series 2000A-2, 6.450%, 6/01/29 (Alternative Minimum Tax) 4,795 Montana Higher Education Student Assistance Corporation, 12/09 at 100.50 A2 4,119,480 Student Loan Revenue Bonds, Subordinate Series 1998B, 5.500%, 12/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 5,340 Total Montana 4,673,505 ------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.1% (0.1% OF TOTAL INVESTMENTS) 1,055 Nebraska Investment Finance Authority, Single Family 9/10 at 100.00 AAA 1,086,428 Housing Revenue Bonds, Series 2000E, 5.850%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ NEVADA - 2.5% (1.7% OF TOTAL INVESTMENTS) 10,900 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AA (4) 12,151,538 Bonds, Series 2002C, 5.500%, 6/15/19 (Pre-refunded 6/15/12) - NPFG Insured Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: 3,500 0.000%, 1/01/21 - AMBAC Insured No Opt. Call Caa2 326,445 2,780 0.000%, 1/01/28 - AMBAC Insured No Opt. Call Caa2 143,865 6,980 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 Caa2 1,430,970 5,000 Reno, Nevada, Health Facilities Revenue Bonds, Catholic 7/17 at 100.00 A 4,923,300 Healthcare West, Series 2007A, 5.250%, 7/01/31 2,500 Reno, Nevada, Health Facility Revenue Bonds, Catholic 7/17 at 100.00 AAA 2,688,850 Healthcare West, Trust 2634, 18.374%, 7/01/31 - BHAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------ 31,660 Total Nevada 21,664,968 ------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 27 NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 1.2% (0.8% OF TOTAL INVESTMENTS) 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 $ 3,794,360 6,945 6.100%, 7/01/24 (Alternative Minimum Tax) 7/10 at 101.00 Aaa 7,061,745 ------------------------------------------------------------------------------------------------------------------------------ 10,670 Total New Hampshire 10,856,105 ------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 7.6% (5.0% OF TOTAL INVESTMENTS) 2,110 New Jersey Higher Education Assistance Authority, 6/10 at 101.00 Aaa 2,165,535 Student Loan Revenue Bonds, Series 2000A, 6.000%, 6/01/13 - NPFG Insured (Alternative Minimum Tax) 4,500 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 5,135,715 Transportation System Bonds, Series 2001C, 5.500%, 12/15/18 - FSA Insured 9,250 New Jersey Transportation Trust Fund Authority, 6/13 at 100.00 AAA 10,578,670 Transportation System Bonds, Series 2003C, 5.500%, 6/15/23 (Pre-refunded 6/15/13) New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: 35,000 0.000%, 12/15/29 - FSA Insured No Opt. Call AAA 11,708,200 10,000 0.000%, 12/15/30 - FGIC Insured No Opt. Call AA- 2,734,000 10,000 New Jersey Turnpike Authority, Revenue Bonds, Series 7/13 at 100.00 AAA 10,501,300 2003A, 5.000%, 1/01/20 - FSA Insured (UB) 10,055 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 AAA 10,930,992 Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 (Pre-refunded 6/01/12) 4,450 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 AAA 5,244,681 Tobacco Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39 (Pre-refunded 6/01/13) 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 Baa1 (4) 3,286,458 3,335 5.500%, 9/01/22 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 100.00 Baa1 (4) 3,479,472 ------------------------------------------------------------------------------------------------------------------------------ 91,850 Total New Jersey 65,765,023 ------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 6.6% (4.4% OF TOTAL INVESTMENTS) 5,500 Dormitory Authority of the State of New York, 2/14 at 100.00 AAA 5,677,375 FHA-Insured Mortgage Revenue Bonds, Kaleida Health, Series 2004, 5.050%, 2/15/25 1,910 Dormitory Authority of the State of New York, Insured 1/10 at 100.50 N/R 1,924,841 Revenue Bonds, 853 Schools Program, Gateway-Longview Inc., Series 1998A, 5.500%, 7/01/18 - AMBAC 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 1/10 at 101.00 BBB- 1,599,876 9,235 6.125%, 7/01/21 - RAAI Insured 1/10 at 101.00 BBB- 9,335,107 1,500 Dormitory Authority of the State of New York, Revenue 2/10 at 100.00 N/R 1,548,690 Bonds, St. Barnabas Hospital, Series 1997, 5.450%, 8/01/35 - AMBAC Insured 1,500 Hempstead Industrial Development Agency, New York, No Opt. Call Baa2 1,503,900 Resource 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, 11/12 at 100.00 AAA 13,755,410 Dedicated Tax Fund Bonds, Series 2002A, 5.500%, 11/15/26 - FSA Insured 13,600 Metropolitan Transportation Authority, New York, 11/16 at 100.00 AAA 12,835,408 Transportation Revenue Bonds, Series 2006B, 4.500%, 11/15/32 - FSA Insured (UB) 6,300 New York City, New York, General Obligation Bonds, 5/10 at 101.00 AAA 6,550,803 Fiscal Series 2000A, 6.250%, 5/15/26 - FSA Insured 3,000 New York State Energy Research and Development 3/10 at 101.00 A 2,980,830 Authority, Pollution Control Revenue Bonds, Rochester Gas and Electric Corporation, Series 1998A, 5.950%, 9/01/33 - NPFG Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 57,345 Total New York 57,712,240 ------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.9% (1.3% OF TOTAL INVESTMENTS) 4,900 Charlotte-Mecklenburg Hospital Authority, North 1/15 at 100.00 AAA 5,586,784 Carolina, Healthcare System Revenue Bonds, DBA Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15) 3,500 North Carolina Medical Care Commission, Healthcare 6/19 at 100.00 AA 3,460,975 Facilities Revenue Bonds, Duke University Health System, Series 2009A, 5.000%, 6/01/42 (WI/DD, Settling 11/10/09)
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA (continued) $ 2,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/10 at 100.00 A $ 2,015,160 Revenue Bonds, Series 1998A, 5.000%, 1/01/20 - NPFG Insured 5,500 The Charlotte-Mecklenberg Hospital Authority (North 1/18 at 100.00 AA- 5,408,315 Carolina), Doing Business as Carolinas HealthCare System, Health Care Refunding Revenue Bonds, Series 2008A, 5.000%, 1/15/39 ------------------------------------------------------------------------------------------------------------------------------ 15,900 Total North Carolina 16,471,234 ------------------------------------------------------------------------------------------------------------------------------ OHIO - 7.7% (5.1% OF TOTAL INVESTMENTS) 10,000 American Municipal Power Ohio Inc., General Revenue 2/18 at 100.00 A1 10,048,600 Bonds, Series 2008, 5.250%, 2/15/43 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: 5,710 5.125%, 6/01/24 6/17 at 100.00 BBB 5,085,669 3,570 5.875%, 6/01/30 6/17 at 100.00 BBB 3,107,221 4,875 5.750%, 6/01/34 6/17 at 100.00 BBB 4,099,631 3,000 6.000%, 6/01/42 6/17 at 100.00 BBB 2,313,510 14,830 5.875%, 6/01/47 6/17 at 100.00 BBB 10,987,844 5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, 6/22 at 100.00 BBB 3,378,143 Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-3, 0.000%, 6/01/37 6,720 Cleveland, Ohio, Airport System Revenue Bonds, Series 1/10 at 101.00 AAA 6,724,838 2001A, 5.000%, 1/01/31 - FSA Insured 780 Cleveland, Ohio, Airport System Revenue Bonds, Series 1/10 at 101.00 AAA 794,009 2001A, 5.000%, 1/01/31 (Pre-refunded 1/01/10) - FSA Insured 3,650 Montgomery County, Ohio, Revenue Bonds, Catholic Health 5/14 at 100.00 AA 3,645,365 Initiatives, Series 2004A, 5.000%, 5/01/30 5,500 Ohio Water Development Authority, Solid Waste Disposal 3/10 at 101.00 N/R 4,972,880 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) 11,900 Ohio Water Development Authority, Solid Waste Disposal 3/10 at 102.00 N/R 11,424,238 Revenue Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 75,685 Total Ohio 66,581,948 ------------------------------------------------------------------------------------------------------------------------------ OREGON - 1.1% (0.7% OF TOTAL INVESTMENTS) 9,150 Port of St. Helens, Oregon, Pollution Control Revenue No Opt. Call BBB+ 9,298,322 Bonds, Portland General Electric Company, Series 1985B, 4.800%, 6/01/10 ------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 3.5% (2.3% OF TOTAL INVESTMENTS) 1,250 Allegheny County Hospital Development Authority, No Opt. Call Aa3 1,275,500 Pennsylvania, University of Pittsburgh Medical Center Revenue Bonds, Series 2009A, 5.500%, 8/15/34 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 1,774,188 3,125 0.000%, 5/15/23 - FSA Insured No Opt. Call AAA 1,670,063 3,135 0.000%, 5/15/24 - FSA Insured No Opt. Call AAA 1,580,886 3,155 0.000%, 5/15/26 - FSA Insured No Opt. Call AAA 1,428,016 4,145 0.000%, 11/15/26 - FSA Insured No Opt. Call AAA 1,831,717 2,800 0.000%, 5/15/28 - FSA Insured No Opt. Call AAA 1,130,052 3,000 0.000%, 11/15/28 - FSA Insured No Opt. Call AAA 1,181,490 1,035 Carbon County Industrial Development Authority, No Opt. Call BBB- 1,045,640 Pennsylvania, Resource Recovery Revenue Refunding Bonds, Panther Creek Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) 11,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 11/09 at 101.00 A1 11,026,180 Catholic Health East, Series 1998A, 4.875%, 11/15/18 - AMBAC Insured 4,500 Pennsylvania Economic Development Financing Authority, 1/10 at 100.00 CC 2,926,935 Senior Lien Resource Recovery Revenue Bonds, Northampton Generating Project, Series 1994A, 6.500%, 1/01/13 (Alternative Minimum Tax) 300 Pennsylvania Economic Development Financing Authority, 1/10 at 100.00 N/R 105,000 Subordinate Resource Recovery Revenue Bonds, Northampton Generating Project, Series 1994C, 6.875%, 1/01/11 (Alternative Minimum Tax) 5,000 Pennsylvania Turnpike Commission, Turnpike Subordinate 6/26 at 100.00 AAA 3,641,400 Revenue Bonds, Series 2009C, 0.000%, 6/01/33 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------ 45,570 Total Pennsylvania 30,617,067 ------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 29 NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.9% (0.6% OF TOTAL INVESTMENTS) $ 1,250 Puerto Rico Highway and Transportation Authority, 7/10 at 101.00 AAA $ 1,307,513 Highway Revenue Bonds, Series 2000B, 5.875%, 7/01/21 (Pre-refunded 7/01/10) - NPFG Insured 25,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 2,575,250 Revenue Bonds, Series 2007A, 0.000%, 8/01/47 - AMBAC Insured 3,750 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/17 at 100.00 AA- 3,997,050 Revenue Bonds, Tender Option Bonds Trust 3101, 17.924%, 8/01/57 (IF) ------------------------------------------------------------------------------------------------------------------------------ 30,000 Total Puerto Rico 7,879,813 ------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 0.7% (0.5% OF TOTAL INVESTMENTS) 2,000 Kent County Water Authority, Rhode Island, General 7/12 at 100.00 A 2,010,920 Revenue Bonds, Series 2002A, 5.000%, 7/15/23 - NPFG 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 BBB- 1,293,188 1,080 5.250%, 3/15/18 - RAAI Insured 3/12 at 101.00 BBB- 1,103,792 1,600 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 1,513,632 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32 ------------------------------------------------------------------------------------------------------------------------------ 5,940 Total Rhode Island 5,921,532 ------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 2.9% (1.9% OF TOTAL INVESTMENTS) 2,625 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 A 2,688,368 FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%, 2/15/25 - NPFG Insured 26,955 Piedmont Municipal Power Agency, South Carolina, No Opt. Call A- 7,743,093 Electric Revenue Bonds, Series 2004A-2, 0.000%, 1/01/31 - AMBAC Insured 13,790 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 14,470,674 Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12) ------------------------------------------------------------------------------------------------------------------------------ 43,370 Total South Carolina 24,902,135 ------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.5% (1.0% OF TOTAL INVESTMENTS) 2,860 Johnson City Health and Educational Facilities Board, 7/23 at 100.00 A (4) 2,898,038 Tennessee, Hospital Revenue Refunding and Improvement Bonds, Johnson City Medical Center, Series 1998C, 5.125%, 7/01/25 (Pre-refunded 7/01/23) - NPFG Insured 1,700 Memphis-Shelby County Airport Authority, Tennessee, 3/10 at 101.00 A2 1,715,011 Airport Revenue Bonds, Series 1999D, 6.000%, 3/01/24 - AMBAC Insured (Alternative Minimum Tax) 6,000 Metropolitan Government of Nashville-Davidson County 12/17 at 100.00 N/R 6,766,080 Health and Educational Facilities Board, Tennessee, Revenue Refunding and Improvement Bonds, Meharry Medical College, Series 1996, 6.000%, 12/01/19 - AMBAC Insured 2,000 Sullivan County Health Educational and Housing 3/13 at 100.00 N/R 1,719,860 Facilities Board, Tennessee, Revenue Bonds, Wellmont Health System, Refunding Series 200A, 5.486%, 9/01/32 ------------------------------------------------------------------------------------------------------------------------------ 12,560 Total Tennessee 13,098,989 ------------------------------------------------------------------------------------------------------------------------------ TEXAS - 6.5% (4.4% OF TOTAL INVESTMENTS) 3,975 Bell County Health Facilities Development Corporation, 2/10 at 101.00 AAA 4,081,172 Texas, Revenue Bonds, Scott and White Memorial Hospital and Scott, Sherwood and Brindley Foundation, Series 2000A, 6.125%, 8/15/23 (Pre-refunded 2/15/10) - NPFG Insured 5,000 Bexar Metropolitan Water District, Texas, Waterworks 5/16 at 100.00 A 4,929,100 System Revenue Bonds, Series 2006, 5.000%, 5/01/35 - NPFG 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 A 3,451,080 13,000 5.000%, 1/01/45 - FGIC Insured 1/15 at 100.00 A 11,086,530 4,000 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AA+ 4,107,080 Obligation Bonds, Series 2003, 5.000%, 2/15/27 - AMBAC Insured (UB) 3,885 Houston Independent School District, Public Facility No Opt. Call AA 2,614,527 Corporation, Harris County, Texas, Lease Revenue Bonds, Cesar E. Chavez High School, Series 1998A, 0.000%, 9/15/19 - AMBAC Insured 1,600 Houston, Texas, Senior Lien Airport System Revenue 7/18 at 100.00 AA- 1,664,160 Bonds, Refunding Series 2009A, 5.500%, 7/01/39
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 33,855 Leander Independent School District, Williamson and 8/14 at 23.67 AAA $ 6,154,839 Travis Counties, Texas, General Obligation Bonds, Series 2006, 0.000%, 8/15/40 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 1/10 at 55.91 AAA 2,740,488 3,705 0.000%, 8/15/22 1/10 at 49.80 AAA 1,829,640 3,480 Pearland, Texas, General Obligation Bonds, Series 2002, 3/12 at 100.00 Aaa 3,804,406 5.000%, 3/01/27 (Pre-refunded 3/01/12) - FGIC Insured 6,000 Spring Branch Independent School District, Harris 2/11 at 100.00 AAA 6,333,720 County, Texas, Limited Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%, 2/01/26 (Pre-refunded 2/01/11) 4,000 Tarrant Regional Water District, Texas, Water Revenue 3/13 at 100.00 AAA 4,238,160 Refunding and Improvement Bonds, Series 1999, 5.000%, 3/01/22 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------ 91,430 Total Texas 57,034,902 ------------------------------------------------------------------------------------------------------------------------------ UTAH - 3.3% (2.2% OF TOTAL INVESTMENTS) 3,000 Riverton, Utah, Hospital Revenue Bonds, IHC Health 8/19 at 100.00 AA+ 2,929,740 Services, Inc., Series 2009, 5.000%, 8/15/41 (WI/DD, Settling 11/05/09) Utah County, Utah, Hospital Revenue Bonds, IHC Health Services Inc., Series 1997: 12,885 5.250%, 8/15/21 - NPFG Insured (ETM) 2/10 at 100.00 A (4) 12,934,223 3,900 5.250%, 8/15/26 - NPFG Insured (ETM) 2/10 at 100.00 A (4) 3,914,899 1,960 Utah Housing Corporation, Single Family Mortgage Bonds, 1/12 at 100.00 AA- 1,921,604 Series 2002A-1, 5.300%, 7/01/18 (Alternative Minimum Tax) 5 Utah Housing Finance Agency, Single Family Mortgage 1/10 at 100.00 AA 5,067 Bonds, Series 2000B, 6.250%, 7/01/22 (Alternative Minimum Tax) 620 Utah Housing Finance Agency, Single Family Mortgage 7/10 at 100.00 AA- 631,812 Bonds, Series 2000D-1, 6.050%, 7/01/14 (Alternative Minimum Tax) 530 Utah Housing Finance Agency, Single Family Mortgage 7/10 at 100.00 AA 529,995 Bonds, Series 2000E-1, Class II, 6.150%, 1/01/27 (Alternative Minimum Tax) 840 Utah Housing Finance Agency, Single Family Mortgage 7/10 at 100.00 AA- 855,733 Bonds, Series 2000E-1, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax) 785 Utah Housing Finance Agency, Single Family Mortgage 7/11 at 100.00 AA 792,261 Bonds, Series 2001A-2, 5.650%, 7/01/27 (Alternative Minimum Tax) 545 Utah Housing Finance Agency, Single Family Mortgage 1/11 at 100.00 Aaa 559,497 Bonds, Series 2001B-1, 5.750%, 7/01/19 (Alternative Minimum Tax) 3,000 Utah Water Finance Agency, Revenue Bonds, Pooled Loan 10/12 at 100.00 N/R (4) 3,354,390 Financing Program, Series 2002C, 5.250%, 10/01/28 (Pre-refunded 10/01/12) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ 28,070 Total Utah 28,429,221 ------------------------------------------------------------------------------------------------------------------------------ VIRGIN ISLANDS - 0.8% (0.5% OF TOTAL INVESTMENTS) 4,700 Virgin Islands Public Finance Authority, Gross Receipts 10/14 at 100.00 BBB+ 4,534,560 Taxes 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 2,545,175 Refinery Project - Hovensa LLC, Series 2003, 6.125%, 7/01/22 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 7,200 Total Virgin Islands 7,079,735 ------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS) 10,500 Metropolitan Washington DC Airports Authority, Virginia, 10/26 at 100.00 AAA 7,174,020 Dulles Toll Road Revenue Bonds, Series 2009C., 0.000%, 10/01/41 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 5.3% (3.5% OF TOTAL INVESTMENTS) 12,235 Chelan County Public Utility District 1, Washington, No Opt. Call AA 5,289,802 Columbia River-Rock Island Hydro-Electric System Revenue Refunding Bonds, Series 1997A, 0.000%, 6/01/26 - NPFG Insured Cowlitz County Public Utilities District 1, Washington, Electric Production Revenue Bonds, Series 2004: 465 5.000%, 9/01/22 - FGIC Insured 9/14 at 100.00 A 478,029 3,100 5.000%, 9/01/28 - FGIC Insured 9/14 at 100.00 A 3,131,589
Nuveen Investments 31 NPP | Nuveen Performance Plus Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) $ 5,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa $ 5,571,900 Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16 (UB) 10,000 Washington State Healthcare Facilities Authority, 10/16 at 100.00 AA 9,551,000 Revenue Bonds, Providence Health Care Services, Series 2006A, 4.625%, 10/01/34 - FGIC Insured (UB) 4,685 Washington State Healthcare Facilities Authority, 12/09 at 101.00 A (4) 4,752,370 Revenue Bonds, Providence Services, Series 1999, 5.375%, 12/01/19 (Pre-refunded 12/01/09) - NPFG Insured 5,000 Washington State Housing Finance Commission, Non-Profit 1/10 at 101.00 BBB- 5,003,400 Housing Revenue Bonds, Kline Galland Center, Series 1999, 6.000%, 7/01/29 - RAAI Insured 12,000 Washington, Motor Vehicle Fuel Tax General Obligation 1/11 at 100.00 AA+ 12,184,800 Bonds, Series 2001D, 5.250%, 1/01/26 ------------------------------------------------------------------------------------------------------------------------------ 52,485 Total Washington 45,962,890 ------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS) 5,000 Mason County, West Virginia, Pollution Control Revenue 10/11 at 100.00 BBB 5,045,000 Bonds, Appalachian Power Company, Series 2003L, 5.500%, 10/01/22 ------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 3.0% (2.0% OF TOTAL INVESTMENTS) 11,620 Wisconsin Health and Educational Facilities Authority, 2/10 at 101.00 BBB+ 11,649,982 Revenue Bonds, Marshfield Clinic, Series 1999, 6.250%, 2/15/29 - RAAI Insured 7,315 Wisconsin Health and Educational Facilities Authority, 1/10 at 102.00 N/R 6,242,623 Revenue Bonds, Millennium Housing Foundation Inc., Series 1998, 6.100%, 1/01/28 8,875 Wisconsin Housing and Economic Development Authority, 9/14 at 100.00 AA 8,188,519 Home Ownership Revenue Bonds, Series 2005C, 4.875%, 3/01/36 (Alternative Minimum Tax) (UB) ------------------------------------------------------------------------------------------------------------------------------ 27,810 Total Wisconsin 26,081,124 ------------------------------------------------------------------------------------------------------------------------------ $ 1,596,345 Total Investments (cost $1,286,419,790) - 150.7% 1,311,136,145 ===============--------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (4.9)% (42,945,000) ----------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.5% 21,581,567 ---------------------------------------------------------------------------------------------------------- Auction Rate Preferred Shares, at Liquidation Value - (48.3)% (5) (419,900,000) ----------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 869,872,712 ===========================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.0% N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 32 Nuveen Investments NMA | Nuveen Municipal Advantage Fund, Inc. | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.4% (0.9% OF TOTAL INVESTMENTS) $ 5,075 Lauderdale County and Florence Healthcare Authority, 1/10 at 101.00 A $ 4,467,320 Alabama, Revenue Bonds, Coffee Health Group, Series 1999A, 5.250%, 7/01/24 - NPFG Insured 5,155 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 4,342,108 Environmental Improvement Revenue Bonds, MeadWestvaco Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 10,230 Total Alabama 8,809,428 ------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.9% (0.6% OF TOTAL INVESTMENTS) Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series 2005A: 1,125 5.250%, 12/01/34 - FGIC Insured (UB) 12/14 at 100.00 AA 1,147,556 1,280 5.250%, 12/01/41 - FGIC Insured (UB) 12/14 at 100.00 AA 1,299,315 Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A: 920 4.625%, 6/01/23 6/14 at 100.00 Baa3 845,278 3,250 5.000%, 6/01/46 6/14 at 100.00 Baa3 2,159,625 ------------------------------------------------------------------------------------------------------------------------------ 6,575 Total Alaska 5,451,774 ------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 2.0% (1.2% OF TOTAL INVESTMENTS) 4,905 Maricopa County Industrial Development Authority, 7/17 at 100.00 A 4,840,646 Arizona, Health Facility Revenue Bonds, Catholic Healthcare West, Series 2007A, 5.250%, 7/01/32 5,000 Maricopa County Pollution Control Corporation, Arizona, 1/10 at 100.00 Baa3 4,956,250 Remarketed Revenue Refunding Bonds, Public Service Company of New Mexico, Series 1992A, 5.750%, 11/01/22 2,500 Phoenix, Arizona, Civic Improvement Corporation, Senior 7/18 at 100.00 AA- 2,492,275 Lien Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/38 ------------------------------------------------------------------------------------------------------------------------------ 12,405 Total Arizona 12,289,171 ------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 18.0% (11.6% OF TOTAL INVESTMENTS) 3,500 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 A- 2,652,895 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 A 982,783 6,410 0.000%, 8/01/34 - FGIC Insured No Opt. Call A 1,361,484 3,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 2,785,350 Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/33 7,500 California State Public Works Board, Lease Revenue 6/14 at 100.00 A- 7,147,650 Bonds, Department of Mental Health, Coalinga State Hospital, Series 2004A, 5.125%, 6/01/29 2,750 California Statewide Community Development Authority, 8/19 at 100.00 AA 2,950,668 Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38 11,200 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A 11,214,112 5.250%, 2/01/28 16,000 California, Various Purpose General Obligation Bonds, 6/17 at 100.00 A 14,977,920 Series 2007, 5.000%, 6/01/37 9,955 Capistrano Unified School District, Orange County, No Opt. Call A 2,532,552 California, 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 A+ 788,120 3,795 0.000%, 2/01/37 - FGIC Insured No Opt. Call A+ 584,240 7,535 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 9,675,166 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, 8/13 at 55.54 AA 3,314,363 California, General Obligation Bonds, Series 2003B, 0.000%, 8/01/25 - FGIC Insured 2,510 Folsom Cordova Unified School District, Sacramento No Opt. Call A+ 832,366 County, California, General Obligation Bonds, School Facilities Improvement District 1, Series 2004B, 0.000%, 10/01/28 - NPFG Insured 3,360 Folsom Cordova Unified School District, Sacramento No Opt. Call A+ 1,206,778 County, California, General Obligation Bonds, School Facilities Improvement District 2, Series 2002A, 0.000%, 7/01/27 - NPFG Insured 2,315 Gateway Unified School District, California, General No Opt. Call A 587,709 Obligation Bonds, Series 2004B, 0.000%, 8/01/32 - FGIC Insured
Nuveen Investments 33 NMA | Nuveen Municipal Advantage Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 1,000 Golden State Tobacco Securitization Corporation, 6/17 at 100.00 BBB $ 664,390 California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47 3,000 Golden State Tobacco Securitization Corporation, No Opt. Call AAA 1,124,970 California, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 0.000%, 6/01/26 - FSA Insured 1,275 Madera Unified School District, Madera County, 8/12 at 100.00 AAA 1,354,356 California, General Obligation Bonds, Series 2002, 5.250%, 8/01/23 - FSA Insured 2,200 M-S-R Energy Authority, California, Gas Revenue Bonds, No Opt. Call A 2,349,006 Citigroup Prepay Contracts, Series 2009C, 6.500%, 11/01/39 North Orange County Community College District, California, General Obligation Bonds, Series 2003B: 7,735 0.000%, 8/01/25 - FGIC Insured No Opt. Call AA 3,201,052 4,000 0.000%, 8/01/26 - FGIC Insured No Opt. Call AA 1,549,960 5,000 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 5,519,050 Residential Mortgage Revenue Refunding Bonds, Series 1991B, 7.375%, 2/01/12 (ETM) 5,000 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 6,254,800 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 No Opt. Call AAA 11,741,930 Program Single Family Mortgage Revenue Bonds, Series 1989A, 7.600%, 1/01/23 (Alternative Minimum Tax) (ETM) 1,830 San Diego Public Facilities Financing Authority, 8/19 at 100.00 AA- 2,306,971 California, Water Utility Revenue Bonds, Tender Option Bond Trust 3504, 19.428%, 8/01/39 (IF) 7,660 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 4,186,190 County, California, Senior Lien Toll Road Revenue Bonds, Series 1993, 0.000%, 1/01/24 (ETM) 23,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call A 3,583,400 County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/35 - NPFG Insured 7,250 San Jose-Evergreen Community College District, Santa 9/15 at 47.82 Aa2 2,240,685 Clara County, California, General Obligation Bonds, Series 2005A, 0.000%, 9/01/29 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 174,110 Total California 109,670,916 ------------------------------------------------------------------------------------------------------------------------------ COLORADO - 8.1% (5.2% OF TOTAL INVESTMENTS) 1,600 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 BBB 1,433,296 Bonds, Series 2006, 5.250%, 10/01/40 - SYNCORA GTY Insured 9,440 Colorado Health Facilities Authority, Colorado, Revenue 9/16 at 100.00 AA 8,167,488 Bonds, Catholic Health Initiatives, Series 2006A, 4.500%, 9/01/38 3,335 Colorado Health Facilities Authority, Colorado, Revenue 7/19 at 100.00 AA 3,410,004 Bonds, Catholic Health Initiatives, Series 2009A, 5.500%, 7/01/34 (WI/DD, Settling 11/10/09) 1,150 Colorado Health Facilities Authority, Revenue Bonds, 9/18 at 102.00 AAA 1,151,990 Poudre Valley Health System, Series 2005C, 5.250%, 3/01/40 - FSA Insured 3,300 Denver City and County, Colorado, Airport Revenue Bonds, 11/16 at 100.00 A+ 3,382,566 Series 2006, 5.000%, 11/15/24 - FGIC Insured 2,000 Denver Convention Center Hotel Authority, Colorado, 11/16 at 100.00 BBB- 1,579,720 Senior Revenue Bonds, Convention Center Hotel, Series 2006, 4.750%, 12/01/35 - SYNCORA GTY Insured Denver, Colorado, Airport Revenue Bonds, Series 2006: 5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 A+ 5,531,798 4,335 5.000%, 11/15/25 - FGIC Insured (UB) 11/16 at 100.00 A+ 4,422,524 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 1997B: 2,650 0.000%, 9/01/16 - NPFG Insured No Opt. Call A 1,825,506 8,645 0.000%, 9/01/26 - NPFG Insured No Opt. Call A 2,878,353 1,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 1,064,610 Bonds, Series 2000A, 5.750%, 9/01/35 (Pre-refunded 9/01/10) - NPFG Insured E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B: 7,500 0.000%, 9/01/29 - NPFG Insured No Opt. Call A 1,994,475 10,000 0.000%, 9/01/31 - NPFG Insured No Opt. Call A 2,278,300 10,000 0.000%, 9/01/32 - NPFG Insured No Opt. Call A 2,119,700 Platte River Power Authority, Colorado, Power Revenue Refunding Bonds, Series 2002EE: 1,030 5.375%, 6/01/17 (Pre-refunded 6/01/12) 6/12 at 100.00 Aa2 (4) 1,144,979 4,890 5.375%, 6/01/18 (Pre-refunded 6/01/12) 6/12 at 100.00 Aa2 (4) 5,435,871
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ COLORADO (continued) Platte River Power Authority, Colorado, Power Revenue Refunding Bonds, Series 2002EE: $ 970 5.375%, 6/01/17 6/12 at 100.00 AA $ 1,057,358 110 5.375%, 6/01/18 6/12 at 100.00 AA 118,890 ------------------------------------------------------------------------------------------------------------------------------ 77,320 Total Colorado 48,997,428 ------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.2% (0.1% OF TOTAL INVESTMENTS) 1,270 District of Columbia Housing Finance Agency, GNMA/FNMA 12/09 at 100.00 AAA 1,267,905 Single Family Mortgage Revenue Bonds, Series 1997B, 5.900%, 12/01/28 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 4.4% (2.8% OF TOTAL INVESTMENTS) 2,770 Florida Housing Finance Corporation, Housing Revenue 12/10 at 100.00 AAA 2,789,501 Bonds, Stratford Point Apartments, Series 2000O-1, 5.850%, 12/01/31 - FSA Insured (Alternative Minimum Tax) 14,730 South Miami Health Facilities Authority, Florida, 8/17 at 100.00 AA- 13,827,788 Hospital Revenue, Baptist Health System Obligation Group, Series 2007, 5.000%, 8/15/42 (UB) 10,130 Tampa, Florida, Healthcare System Revenue Bonds, 12/09 at 100.00 A (4) 10,288,231 Allegany Health System - St. Mary's Hospital, Series 1993, 5.125%, 12/01/23 - NPFG Insured (ETM) ------------------------------------------------------------------------------------------------------------------------------ 27,630 Total Florida 26,905,520 ------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.1% (0.7% OF TOTAL INVESTMENTS) 4,000 Augusta, Georgia, Water and Sewerage Revenue Bonds, 10/14 at 100.00 AAA 4,130,040 Series 2004, 5.250%, 10/01/39 - FSA Insured 2,900 Coffee County Hospital Authority, Georgia, Revenue 12/14 at 100.00 BBB- 2,489,766 Bonds, Coffee County Regional Medical Center, Series 2004, 5.000%, 12/01/26 ------------------------------------------------------------------------------------------------------------------------------ 6,900 Total Georgia 6,619,806 ------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.4% (0.3% OF TOTAL INVESTMENTS) 2,215 Hawaii Housing and Community Development Corporation, 7/10 at 102.00 N/R (4) 2,335,673 GNMA Collateralized Multifamily Housing Revenue Bonds, Sunset Villas, Series 2000, 5.700%, 7/20/31 (Pre-refunded 7/20/10) 290 Hawaii Housing Finance and Development Corporation, 1/10 at 100.00 AAA 297,589 Single Family Mortgage Purchase Revenue Bonds, Series 1997A, 5.750%, 7/01/30 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 2,505 Total Hawaii 2,633,262 ------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 15.7% (10.1% OF TOTAL INVESTMENTS) 4,345 Chicago Board of Education, Illinois, Unlimited Tax No Opt. Call AA- 1,555,814 General Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1, 0.000%, 12/01/28 - FGIC Insured 4,260 Chicago Board of Education, Illinois, Unlimited Tax No Opt. Call AA- 1,248,734 General Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/31 - FGIC Insured 5,865 Chicago, Illinois, General Obligation Bonds, 7/10 at 101.00 AAA 6,165,464 Neighborhoods 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 A1 4,730,400 Revenue Bonds, O'Hare International Airport, Series 2001A, 5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 2,000 Illinois Finance Authority, Revenue Bonds, Children's 8/18 at 100.00 AAA 1,997,880 Memorial Hospital, Series 2008A, 5.250%, 8/15/47 - AGC Insured (UB) 8,395 Illinois Finance Authority, Revenue Bonds, Loyola 7/17 at 100.00 Aa1 8,623,428 University of Chicago, Tender Option Bond Trust 1137, 9.072%, 7/01/46 (IF) 2,500 Illinois Finance Authority, Revenue Bonds, Silver Cross 8/19 at 100.00 BBB 2,627,775 Hospital and Medical Centers, Series 2009, 6.875%, 8/15/38 6,000 Illinois Health Facilities Authority, Revenue Bonds, 5/12 at 100.00 Aaa 6,688,380 Condell Medical Center, Series 2002, 5.750%, 5/15/22 (Pre-refunded 5/15/12) 6,165 Illinois Health Facilities Authority, Revenue Bonds, 2/10 at 100.00 A 6,166,665 Sarah Bush Lincoln Health Center, Series1996B, 5.750%, 2/15/22 10,740 Lake and McHenry Counties Community Unit School District 1/15 at 66.94 Aa3 5,583,833 118, Wauconda, Illinois, General Obligation Bonds, Series 2005B, 0.000%, 1/01/23 - FSA Insured 1,090 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call A2 619,000 Revenue Bonds, McCormick Place Expansion Project, Series 1993A, 0.000%, 6/15/21 - FGIC 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 13,653,461 10,430 5.250%, 12/15/28 - FGIC Insured 12/09 at 101.00 AAA 10,544,000
Nuveen Investments 35 NMA | Nuveen Municipal Advantage Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 3,175 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA $ 533,527 Revenue Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%, 6/15/41 - NPFG Insured 6,000 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call A 2,805,900 Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1996A, 0.000%, 6/15/24 - NPFG Insured 4,600 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call Aa3 5,639,738 Lake, 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 4/13 at 100.00 AA- 1,995,930 Revenue Bonds, Series 2003A, 5.000%, 4/01/23 - AMBAC Insured 7,500 Valley View Public Schools, Community Unit School No Opt. Call AA 3,339,675 District 365U of Will County, Illinois, General Obligation Bonds, Series 2005, 0.000%, 11/01/25 - NPFG Insured 23,125 Will County Community High School District 210 No Opt. Call Aa3 11,131,681 Lincoln-Way, Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------ 126,585 Total Illinois 95,651,285 ------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.5% (2.2% OF TOTAL INVESTMENTS) 2,025 Hospital Authority of Delaware County, Indiana, Hospital 8/10 at 100.00 N/R 1,969,475 Revenue Refunding Bonds, Cardinal Health System, Series 1997, 5.000%, 8/01/16 - AMBAC Insured 4,030 Indiana Finance Authority Health System Revenue Bonds 11/19 at 100.00 Aa3 3,934,811 Series 2009A (Sisters of St. Francis Health Services, Inc. Obligated Group), 5.250%, 11/01/39 (WI/DD, Settling 11/05/09) 6,000 Indiana Finance Authority, Revenue and Refunding Bonds, 12/19 at 100.00 AA 5,859,840 Trinity Health Credit Group, Series 2009A, 5.250%, 12/01/38 (WI/DD, Settling 11/16/09) 5,205 Indiana Health Facility Financing Authority, Hospital 8/10 at 101.50 A+ (4) 5,491,535 Revenue Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30 (Pre-refunded 8/15/10) - NPFG Insured 2,435 Indiana Health Facility Financing Authority, Revenue 3/17 at 100.00 BBB 2,322,406 Bonds, Community Foundation of Northwest Indiana, Series 2007, 5.500%, 3/01/37 1,475 St. Joseph County Hospital Authority, Indiana, Revenue 2/10 at 101.00 BB+ 1,454,630 Bonds, Madison Center Inc., Series 1999, 5.450%, 2/15/12 ------------------------------------------------------------------------------------------------------------------------------ 21,170 Total Indiana 21,032,697 ------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.8% (0.5% OF TOTAL INVESTMENTS) 6,050 Iowa Tobacco Settlement Authority, Asset Backed 6/15 at 100.00 BBB 4,444,935 Settlement Revenue Bonds, Series 2005C, 5.375%, 6/01/38 250 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 215,450 Revenue Bonds, Series 2005B, 5.600%, 6/01/34 ------------------------------------------------------------------------------------------------------------------------------ 6,300 Total Iowa 4,660,385 ------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 A 1,767,623 Gas and Electric Company, Series 2004, 5.300%, 6/01/31 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.4% (0.3% OF TOTAL INVESTMENTS) 1,500 Kentucky Economic Development Finance Authority, 8/19 at 100.00 Aa3 1,601,070 Hospital Revenue Bonds, Baptist Healthcare System, Series 2009A, 5.375%, 8/15/24 1,000 Kentucky Economic Development Finance Authority, 6/18 at 100.00 AAA 1,071,950 Louisville Arena Project Revenue Bonds, Louisville Arena Authority, Inc., Series 2008A-1, 6.000%, 12/01/33 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------ 2,500 Total Kentucky 2,673,020 ------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 13.9% (8.9% OF TOTAL INVESTMENTS) 13,500 DeSoto Parish, Louisiana, Pollution Control Revenue 3/10 at 102.00 BBB 13,504,590 Refunding Bonds, Cleco Utility Group Inc. Project, Series 1999, 5.875%, 9/01/29 - AMBAC Insured Louisiana Public Facilities Authority, Extended Care Facilities Revenue Bonds, Comm-Care Corporation Project, Series 1994: 625 11.000%, 2/01/14 (ETM) No Opt. Call N/R (4) 754,406 5,650 11.000%, 2/01/14 (ETM) No Opt. Call N/R (4) 6,818,646 6,650 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 A 6,525,778 Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/33 - NPFG Insured 9,000 Louisiana Public Facilities Authority, Revenue Bonds, 5/17 at 100.00 A3 8,462,160 Ochsner Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ LOUISIANA (continued) $ 28 Louisiana State, Gasoline Tax Revenue Bonds, Series 5/16 at 100.00 AA $ 21,269 2006, Residuals 660-1, 15.601%, 5/01/41 - FGIC Insured (IF) Louisiana State, Gasoline Tax Revenue Bonds, Series 2006A: 20,690 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 19,399,979 10,000 5.000%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 9,937,200 Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, Series 2001B: 8,205 5.500%, 5/15/30 5/11 at 101.00 BBB 8,236,589 11,855 5.875%, 5/15/39 5/11 at 101.00 BBB 10,729,368 ------------------------------------------------------------------------------------------------------------------------------ 86,203 Total Louisiana 84,389,985 ------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.4% (1.6% OF TOTAL INVESTMENTS) 620 Massachusetts Health and Educational Facilities 7/18 at 100.00 A3 572,427 Authority, Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.125%, 7/01/33 1,750 Massachusetts Health and Educational Facilities 1/10 at 100.50 BBB+ 1,610,210 Authority, Revenue Bonds, UMass Memorial Healthcare, Series 1998A, 5.000%, 7/01/28 - AMBAC Insured 55 Massachusetts Housing Finance Agency, Single Family 12/09 at 100.00 AAA 55,232 Housing Revenue Bonds, Series 77, 5.950%, 6/01/25 - FSA Insured (Alternative Minimum Tax) Massachusetts Turnpike Authority, Metropolitan Highway System Revenue Bonds, Senior Series 1997A: 1,975 5.000%, 1/01/12 1/10 at 100.00 A- 1,979,701 2,000 5.125%, 1/01/17 - NPFG Insured 1/10 at 100.00 A 2,001,780 875 5.000%, 1/01/27 - NPFG Insured 1/10 at 100.00 A 870,949 5,320 5.000%, 1/01/37 - NPFG Insured 1/10 at 100.00 A 5,018,196 2,690 Massachusetts Turnpike Authority, Metropolitan Highway 1/10 at 100.00 AA 2,690,430 System Revenue Bonds, Subordinate Series 1997B, 5.250%, 1/01/29 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 15,285 Total Massachusetts 14,798,925 ------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 2.0% (1.3% 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 2/10 at 100.00 Ba3 4,174,671 3,000 5.250%, 8/15/28 2/10 at 100.00 BB- 2,315,250 3,275 Michigan State Hospital Finance Authority, Revenue 2/10 at 100.00 BB- 3,201,902 Refunding Bonds, Detroit Medical Center Obligated Group, Series 1993A, 6.500%, 8/15/18 3,050 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 2,692,052 Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------ 14,320 Total Michigan 12,383,875 ------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.0% (0.6% OF TOTAL INVESTMENTS) 5,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 A (4) 5,275,050 Minnesota, Subordinate Airport Revenue Bonds, Series 2001C, 5.250%, 1/01/32 (Pre-refunded 1/01/11) - FGIC Insured 565 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 100.00 AA+ 573,718 Revenue Bonds, Series 2000J, 5.400%, 1/01/23 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 5,565 Total Minnesota 5,848,768 ------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.9% (0.6% OF TOTAL INVESTMENTS) 12,005 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AA- 3,870,292 Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/29 - AMBAC Insured 105 Missouri Housing Development Commission, Single Family 3/10 at 102.00 AAA 112,330 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 10/13 at 100.00 AAA 1,506,825 Development Agency, Mass Transit Sales Tax Appropriation Bonds, Metrolink Cross County Extension Project, Series 2002B, 5.000%, 10/01/32 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------ 13,610 Total Missouri 5,489,447 ------------------------------------------------------------------------------------------------------------------------------ NEVADA - 3.6% (2.3% OF TOTAL INVESTMENTS) 7,310 Clark County, Nevada, Limited Tax General Obligation 7/10 at 100.00 AA+ (4) 7,564,242 Bank Bonds, Series 2000, 5.500%, 7/01/19 (Pre-refunded 7/01/10)
Nuveen Investments 37 NMA | Nuveen Municipal Advantage Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ NEVADA (continued) $ 7,500 Clark County, Nevada, Subordinate Lien Airport Revenue 7/10 at 101.00 Aa3 (4) $ 7,857,075 Bonds, Series 1999A, 6.000%, 7/01/29 (Pre-refunded 7/01/10) - NPFG Insured Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: 3,025 0.000%, 1/01/16 - AMBAC Insured No Opt. Call Caa2 515,097 7,910 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 Caa2 1,621,629 3,750 Henderson, Nevada, Healthcare Facility Revenue Refunding 7/17 at 100.00 AAA 4,333,875 Bonds, Catholic Healthcare West, Series 2007B, Trust 2633, 18.647%, 7/01/31 - BHAC Insured (IF) 250 Nevada Housing Division, Single Family Mortgage Bonds, 4/10 at 100.00 Aaa 246,908 Senior Series 1997C-2, 5.750%, 4/01/29 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 29,745 Total Nevada 22,138,826 ------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 3.6% (2.3% OF TOTAL INVESTMENTS) 15,000 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 4,101,000 Transportation System Bonds, Series 2006C, 0.000%, 12/15/30 - FGIC Insured Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002: 10,970 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 11,925,706 5,050 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 5,700,440 ------------------------------------------------------------------------------------------------------------------------------ 31,020 Total New Jersey 21,727,146 ------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.2% (0.8% OF TOTAL INVESTMENTS) 7,500 Farmington, New Mexico, Pollution Control Revenue 4/10 at 100.00 Baa3 7,453,725 Refunding Bonds, Public Service Company of New Mexico - San Juan Project, Series 1997B, 5.800%, 4/01/22 ------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 8.9% (5.7% OF TOTAL INVESTMENTS) 7,000 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AA- 7,112,000 Service Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29 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 4,067,122 4,070 7.000%, 3/01/12 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,159,092 3,925 7.000%, 3/01/15 (Pre-refunded 3/01/10) - FSA Insured 3/10 at 100.00 AAA 4,010,918 4,975 New York City Industrial Development Agency, New York, 12/09 at 101.00 BB 3,464,789 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 BB 2,822,220 Special Facilities Revenue Bonds, British Airways PLC, Series 2002, 7.625%, 12/01/32 (Alternative Minimum Tax) 10,000 New York City Municipal Water Finance Authority, New 12/14 at 100.00 AAA 10,180,300 York, Water and Sewerage System Revenue Bonds, Series 2004B, 5.000%, 6/15/36 - FSA Insured (UB) 10,000 New York City Transitional Finance Authority, New York, 5/10 at 101.00 AAA 10,408,900 Future Tax Secured Bonds, Fiscal Series 2000B, 6.000%, 11/15/29 (Pre-refunded 5/15/10) 7,435 New York City, New York, General Obligation Bonds, 5/10 at 101.00 AA (4) 7,728,980 Fiscal Series 2000A, 5.750%, 5/15/20 (Pre-refunded 5/15/10) ------------------------------------------------------------------------------------------------------------------------------ 54,385 Total New York 53,954,321 ------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.4% (1.6% OF TOTAL INVESTMENTS) 1,070 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AA 1,071,380 Revenue Bonds, 1998 Trust Agreement, Series 10A, 5.400%, 7/01/32 - AMBAC Insured (Alternative Minimum Tax) 4,305 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100.00 AA 4,308,616 Revenue Bonds, 1998 Trust Agreement, Series 7A, 6.250%, 1/01/29 (Alternative Minimum Tax) 4,005 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100.00 AA 4,009,285 Revenue Bonds, 1998 Trust Agreement, Series 9A, 5.875%, 7/01/31 (Alternative Minimum Tax) 3,500 North Carolina Medical Care Commission, Healthcare 6/19 at 100.00 AA 3,460,975 Facilities Revenue Bonds, Duke University Health System, Series 2009A, 5.000%, 6/01/42 (WI/DD, Settling 11/10/09) 1,900 North Carolina Turnpike Authority, Triangle Expressway 1/19 at 100.00 AAA 1,997,926 System Senior Lien Revenue Bonds, Series 2009A, 5.750%, 1/01/39 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------ 14,780 Total North Carolina 14,848,182 ------------------------------------------------------------------------------------------------------------------------------
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 0.3% (0.2% OF TOTAL INVESTMENTS) $ 2,250 Ward County Health Care, North Dakota, Revenue Bonds, 7/16 at 100.00 BBB+ $ 2,105,865 Trinity Obligated Group, Series 2006, 5.125%, 7/01/25 ------------------------------------------------------------------------------------------------------------------------------ OHIO - 7.7% (4.9% OF TOTAL INVESTMENTS) 4,630 Akron, Bath and Copley Joint Township Hospital District, 11/09 at 101.00 Baa1 4,638,473 Ohio, Hospital Facilities Revenue Bonds, Summa Health System, Series 1998A, 5.375%, 11/15/18 10,000 American Municipal Power Ohio Inc., General Revenue 2/18 at 100.00 A1 10,048,600 Bonds, Series 2008, 5.250%, 2/15/43 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: 855 5.125%, 6/01/24 6/17 at 100.00 BBB 761,514 2,700 5.875%, 6/01/30 6/17 at 100.00 BBB 2,349,999 2,635 5.750%, 6/01/34 6/17 at 100.00 BBB 2,215,903 2,520 6.000%, 6/01/42 6/17 at 100.00 BBB 1,943,348 5,895 5.875%, 6/01/47 6/17 at 100.00 BBB 4,367,723 5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, 6/22 at 100.00 BBB 3,378,143 Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-3, 0.000%, 6/01/37 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) 8,127,179 5,000 6.750%, 4/01/22 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,183,150 1,090 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa 1,095,581 Securities Program Residential Mortgage Revenue Bonds, Series 2000D, 5.450%, 9/01/31 (Alternative Minimum Tax) 2,650 Ohio, General Obligation Bonds, Higher Education, Series 5/13 at 100.00 AA+ 2,769,727 2003A, 5.000%, 5/01/22 ------------------------------------------------------------------------------------------------------------------------------ 50,965 Total Ohio 46,879,340 ------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 2.4% (1.6% OF TOTAL INVESTMENTS) 1,675 Oklahoma Development Finance Authority, Health System 8/18 at 100.00 AA- 1,709,137 Revenue Bonds, Integris Baptist Medical Center, Series 2008B, 5.250%, 8/15/38 12,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/17 at 100.00 A 11,321,640 Saint John Health System, Series 2007, 5.000%, 2/15/42 2,000 Oklahoma Municipal Power Authority, Power Supply System 1/17 at 100.00 A 1,745,240 Revenue Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------ 15,675 Total Oklahoma 14,776,017 ------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.5% (0.3% OF TOTAL INVESTMENTS) 3,000 Oregon State Facilities Authority, Revenue Bonds, 10/17 at 100.00 A 2,770,680 Willamette University, Series 2007A, 5.000%, 10/01/36 ------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 1.8% (1.1% OF TOTAL INVESTMENTS) 5,000 Allegheny County Hospital Development Authority, No Opt. Call Aa3 5,122,450 Pennsylvania, University of Pittsburgh Medical Center Revenue Bonds, Series 2009A, 5.625%, 8/15/39 585 Carbon County Industrial Development Authority, No Opt. Call BBB- 591,014 Pennsylvania, Resource Recovery Revenue Refunding Bonds, Panther Creek Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) 1,250 Erie, Pennsylvania, Water Authority, Water Revenue 12/18 at 100.00 AAA 1,259,025 Bonds, Series 2008, 5.000%, 12/01/43 - FSA Insured 1,500 Pennsylvania Housing Finance Agency, Single Family 10/16 at 100.00 AA+ 1,397,235 Mortgage Revenue Bonds, Series 2006A, 4.650%, 10/01/31 (Alternative Minimum Tax) (UB) 2,600 Pennsylvania Turnpike Commission, Turnpike Revenue 12/14 at 100.00 Aa3 2,668,172 Bonds, Series 2004A, 5.500%, 12/01/31 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ 10,935 Total Pennsylvania 11,037,896 ------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 4.8% (3.1% OF TOTAL INVESTMENTS) 5,000 Puerto Rico Electric Power Authority, Power Revenue 7/15 at 100.00 A3 4,966,150 Bonds, Series 2005RR, 5.000%, 7/01/26 - SYNCORA GTY Insured 10,070 Puerto Rico Highway and Transportation Authority, No Opt. Call BBB 9,548,173 Highway Revenue Bonds, Series 2007N, 5.250%, 7/01/39 - FGIC Insured 10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/19 at 100.00 A+ 10,503,500 Revenue Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42
Nuveen Investments 39 NMA | Nuveen Municipal Advantage Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO (continued) $ 4,000 Puerto Rico, General Obligation Bonds, Series 2000B, 7/10 at 100.00 A $ 4,017,000 5.625%, 7/01/19 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 29,070 Total Puerto Rico 29,034,823 ------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 1.3% (0.8% OF TOTAL INVESTMENTS) 1,235 Rhode Island Health and Educational Building 1/10 at 100.00 A 1,236,198 Corporation, Hospital Financing Revenue Bonds, Lifespan Obligated Group, Series 1996, 5.500%, 5/15/16 - NPFG Insured 7,000 Rhode Island Housing and Mortgage Finance Corporation, 10/14 at 100.00 AA+ 6,558,160 Homeownership Opportunity Bond Program, Series 50A, 4.650%, 10/01/34 ------------------------------------------------------------------------------------------------------------------------------ 8,235 Total Rhode Island 7,794,358 ------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 3.3% (2.1% OF TOTAL INVESTMENTS) 10,000 Greenville County School District, South Carolina, 12/12 at 101.00 AA (4) 11,588,700 Installment Purchase Revenue Bonds, Series 2002, 6.000%, 12/01/20 (Pre-refunded 12/01/12) 2,500 Lexington County Health Service District, South 11/13 at 100.00 A+ (4) 2,893,150 Carolina, Hospital Revenue Refunding and Improvement Bonds, Series 2003, 5.750%, 11/01/28 (Pre-refunded 11/01/13) 3,000 Myrtle Beach, South Carolina, Hospitality and 6/14 at 100.00 A+ 2,855,910 Accommodation Fee Revenue Bonds, Series 2004A, 5.000%, 6/01/36 - FGIC Insured 1,220 Piedmont Municipal Power Agency, South Carolina, No Opt. Call A 594,042 Electric Revenue Bonds, Series 2004A-2, 0.000%, 1/01/23 - FGIC Insured 2,125 South Carolina Public Service Authority, Revenue 7/13 at 100.00 Aa2 2,252,181 Refunding Bonds, Santee Cooper Electric System, Series 2003A, 5.000%, 1/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ 18,845 Total South Carolina 20,183,983 ------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,945 South Dakota Health and Educational Facilities 5/17 at 100.00 AA- 2,837,242 Authority, Revenue Bonds, Sanford Health, Series 2007, 5.000%, 11/01/40 ------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 3.9% (2.5% OF TOTAL INVESTMENTS) 6,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 A1 6,139,140 Board, 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 1/13 at 75.87 AAA 13,430,212 Board, Tennessee, Hospital Revenue Refunding Bonds, Covenant Health, Series 2002A, 0.000%, 1/01/18 - FSA Insured 1,750 Metropolitan Government of Nashville-Davidson County, 5/11 at 100.00 AA+ 1,779,120 Tennessee, Electric System Revenue Bonds, Series 2001A, 5.125%, 5/15/26 2,000 Sullivan County Health Educational and Housing 3/13 at 100.00 N/R 1,719,860 Facilities Board, Tennessee, Revenue Bonds, Wellmont Health System, Refunding Series 200A, 5.486%, 9/01/32 1,500 Sumner County Health, Educational, and Housing 11/17 at 100.00 N/R 570,150 Facilities Board, Tennessee, Revenue Refunding Bonds, Sumner Regional Health System Inc., Series 2007, 5.500%, 11/01/46 ------------------------------------------------------------------------------------------------------------------------------ 31,665 Total Tennessee 23,638,482 ------------------------------------------------------------------------------------------------------------------------------ TEXAS - 13.7% (8.8% OF TOTAL INVESTMENTS) 2,000 Abilene Higher Education Authority, Inc., Texas, Student 11/09 at 100.00 Aa3 2,002,300 Loan Revenue Bonds, Subordinate Series 1998B, 5.050%, 7/01/13 (Alternative Minimum Tax) 11,810 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 10,648,250 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 BBB+ 5,433,060 Houston Lighting and Power Company, Series 1998, 5.050%, 11/01/18 - AMBAC Insured (Alternative Minimum Tax) 4,250 Ennis Independent School District, Ellis County, Texas, 8/16 at 60.73 Aaa 1,866,218 General Obligation Bonds, Series 2006, 0.000%, 8/15/26 8,400 Gulf Coast Waste Disposal Authority, Texas, Waste 4/10 at 100.50 BBB 7,875,084 Disposal Revenue Bonds, Valero Energy Corporation, Series 1999, 5.700%, 4/01/32 (Alternative Minimum Tax) 7,500 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AA 7,557,075 Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 - NPFG Insured 1,540 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AA+ 1,577,884 Obligation Bonds, Series 2003, 5.000%, 2/15/28 - AMBAC Insured (UB) 3,460 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AA+ (4) 3,859,872 Obligation Bonds, Series 2003, 5.000%, 2/15/28 (Pre-refunded 2/15/13) - AMBAC Insured
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) Houston, Texas, Water Conveyance System Contract, Certificates of Participation, Series 1993A-J: $ 5,490 6.800%, 12/15/10 - AMBAC Insured No Opt. Call N/R $ 5,764,280 2,000 6.800%, 12/15/11 - AMBAC Insured No Opt. Call N/R 2,136,840 9,345 Leander Independent School District, Williamson and 8/15 at 35.34 AA- 2,424,560 Travis Counties, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/34 - FGIC Insured 16,305 Matagorda County Navigation District 1, Texas, Revenue 11/09 at 101.00 BBB- 15,418,497 Bonds, Reliant Energy Inc., Series 1999B, 5.950%, 5/01/30 (Alternative Minimum Tax) North Texas Thruway Authority, First Tier System Revenue Refunding Bonds, Capital Appreciation Series 2008I: 2,555 0.000%, 1/01/42 - AGC Insured 1/25 at 100.00 AAA 1,908,023 7,000 0.000%, 1/01/43 1/25 at 100.00 A2 5,148,570 3,425 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 3,088,083 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 4,833,668 System Revenue Refunding Bonds, Series 2002A, 6.000%, 10/01/21 245 Wood Glen Housing Finance Corporation, Texas, 12/09 at 100.00 A (4) 246,431 FHA-Insured Section 8 Assisted Mortgage Revenue Bonds, Copperwood I Project, Series 1990A, 7.625%, 1/01/10 - NPFG Insured (ETM) 3,000 Wylie Independent School District, Taylor County, Texas, 8/15 at 74.57 AAA 1,746,930 General Obligation Bonds, Series 2005, 0.000%, 8/15/21 ------------------------------------------------------------------------------------------------------------------------------ 99,025 Total Texas 83,535,625 ------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.5% (0.3% OF TOTAL INVESTMENTS) 3,000 Riverton, Utah, Hospital Revenue Bonds, IHC Health 8/19 at 100.00 AA+ 2,929,740 Services, Inc., Series 2009, 5.000%, 8/15/41 (WI/DD, Settling 11/05/09) ------------------------------------------------------------------------------------------------------------------------------ VIRGIN ISLANDS - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,480 Virgin Islands Public Finance Authority, Matching Fund 10/19 at 100.00 BBB 1,560,956 Revenue Loan Note - Diageo Project, Series 2009A, 6.750%, 10/01/37 ------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.3% (0.2% OF TOTAL INVESTMENTS) 2,855 Tobacco Settlement Financing Corporation of Virginia, 6/17 at 100.00 BBB 1,715,741 Tobacco Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46 ------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 13.9% (8.9% OF TOTAL INVESTMENTS) 1,260 Central Puget Sound Regional Transit Authority, 2/10 at 100.00 AAA 1,261,348 Washington, Sales Tax and Motor Vehicle Excise Tax Bonds, Series 1999, 4.750%, 2/01/28 - FGIC Insured 5,665 Chelan County Public Utility District 1, Washington, 7/12 at 100.00 AA 5,311,731 Hydro Consolidated System Revenue Bonds, Series 2002B, 5.250%, 7/01/37 (Mandatory put 7/01/12) - AMBAC Insured (Alternative Minimum Tax) Chelan County Public Utility District 1, Washington, Hydro Consolidated System Revenue Bonds, Series 2001: 10,730 5.650%, 7/01/32 - NPFG Insured (Alternative Minimum 7/11 at 101.00 AA 10,771,203 Tax) (UB) 8,810 5.600%, 1/01/36 - NPFG Insured (Alternative Minimum 7/11 at 101.00 AA 8,811,410 Tax) (UB) 10,730 Pierce County School District 320, Sumner, Washington, 12/10 at 100.00 Aa1 (4) 11,412,965 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 12/10 at 100.00 AAA 10,628,809 Obligation Bonds, Series 2000B, 5.750%, 12/01/25 (Alternative Minimum Tax) (UB) 5,315 Port of Seattle, Washington, Revenue Bonds, Series No Opt. Call Aa2 5,378,036 2000B, 6.000%, 2/01/10 - NPFG Insured (Alternative Minimum Tax) 19,475 Port of Seattle, Washington, Special Facility Revenue 3/10 at 101.00 A (4) 20,011,341 Bonds, Terminal 18, Series 1999A, 6.000%, 9/01/29 (Pre-refunded 3/01/10) - NPFG Insured 5,000 Port of Seattle, Washington, Special Facility Revenue 3/10 at 101.00 A 5,057,450 Bonds, Terminal 18, Series 1999B, 6.000%, 9/01/20 - NPFG Insured (Alternative Minimum Tax) 5,000 Washington State Healthcare Facilities Authority, 12/09 at 101.00 A (4) 5,071,900 Revenue Bonds, Providence Services, Series 1999, 5.375%, 12/01/19 (Pre-refunded 12/01/09) - NPFG Insured 1,270 Washington State, Motor Vehicle Fuel Tax General No Opt. Call AA+ 646,227 Obligation Bonds, Series 2003F, 0.000%, 12/01/24 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 83,805 Total Washington 84,362,420 ------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 41 NMA | Nuveen Municipal Advantage Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS) $ 5,000 Mason County, West Virginia, Pollution Control Revenue 10/11 at 100.00 BBB $ 5,045,000 Bonds, Appalachian Power Company, Series 2003L, 5.500%, 10/01/22 ------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.7% (1.8% OF TOTAL INVESTMENTS) 535 Badger Tobacco Asset Securitization Corporation, No Opt. Call AAA 593,149 Wisconsin, Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/12 (ETM) Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco Settlement Asset-Backed Bonds, Series 2002: 1,440 6.000%, 6/01/17 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,601,727 4,920 6.125%, 6/01/27 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 5,376,134 565 Green Bay, Wisconsin, Water System Revenue Bonds, Series 11/14 at 100.00 Aa3 582,374 2004, 5.000%, 11/01/29 - FSA Insured 5,000 Madison, Wisconsin, Industrial Development Revenue 4/12 at 100.00 AA- 5,051,250 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 AA- 3,586,590 Sales Tax Revenue Refunding Bonds, Series 1998A, 5.500%, 12/15/19 - NPFG Insured 325 Wisconsin Housing and Economic Development Authority, 3/10 at 100.00 AA 334,022 Home Ownership Revenue Bonds, Series 2000B, 5.750%, 3/01/22 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 15,785 Total Wisconsin 17,125,246 ------------------------------------------------------------------------------------------------------------------------------ $ 1,134,198 Total Investments (cost $951,929,964) - 155.8% 948,796,834 ===============--------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (11.1)% (67,694,983) ----------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.5% 20,911,314 ----------------------------------------------------------------------------------------------------------- Auction Rate Preferred Shares, at Liquidation Value - (48.2)% (5) (293,200,000) ----------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 608,813,165 ===========================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.9% N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 42 Nuveen Investments NMO | Nuveen Municipal Market Opportunity Fund, Inc. | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 0.6% (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 BBB- $ 1,605,721 2,485 5.000%, 1/01/41 - RAAI Insured 1/16 at 100.00 BBB- 2,008,998 ------------------------------------------------------------------------------------------------------------------------------ 4,420 Total Alabama 3,614,719 ------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.8% (1.1% OF TOTAL INVESTMENTS) Alaska Housing Finance Corporation, General Housing Purpose Bonds, Series 2005A: 1,125 5.250%, 12/01/34 - FGIC Insured (UB) 12/14 at 100.00 AA 1,147,556 1,275 5.250%, 12/01/41 - FGIC Insured (UB) 12/14 at 100.00 AA 1,294,240 13,025 Northern Tobacco Securitization Corporation, Alaska, 6/14 at 100.00 Baa3 8,655,113 Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46 ------------------------------------------------------------------------------------------------------------------------------ 15,425 Total Alaska 11,096,909 ------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.2% (0.8% OF TOTAL INVESTMENTS) 5,000 Arkansas Development Finance Authority, Hospital Revenue 2/10 at 100.00 Baa1 (4) 5,078,600 Bonds, Washington Regional Medical Center, Series 2000, 7.000%, 2/01/15 (Pre-refunded 2/01/10) 2,480 Cabot School District 4, Lonoke County, Arkansas, 1/10 at 100.00 A1 2,480,868 General Obligation Refunding Bonds, Series 2003, 5.000%, 2/01/27 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ 7,480 Total Arkansas 7,559,468 ------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 14.7% (9.1% OF TOTAL INVESTMENTS) 12,500 Anaheim Public Finance Authority, California, No Opt. Call AAA 2,620,250 Subordinate Lease Revenue Bonds, Public Improvement Project, Series 1997C, 0.000%, 9/01/35 - FSA Insured 1,350 Antelope Valley Union High School District, Los Angeles No Opt. Call A+ 419,945 County, California, General Obligation Bonds, Series 2004B, 0.000%, 8/01/29 - NPFG Insured Bay Area Toll Authority, San Francisco Bay Area, California, Toll Bridge Revenue Bonds, Series 2009F-1: 2,500 5.125%, 4/01/39 4/19 at 100.00 AA 2,574,250 2,500 5.625%, 4/01/44 4/19 at 100.00 AA 2,698,350 8,000 Beverly Hills Unified School District, Los Angeles No Opt. Call AA 2,277,440 County, California, General Obligation Bonds, Series 2009, 0.000%, 8/01/33 7,800 California County Tobacco Securitization Agency, Tobacco 12/18 at 100.00 Baa3 5,305,950 Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A, 0.000%, 6/01/36 1,350 California Educational Facilities Authority, Revenue No Opt. Call A2 220,415 Refunding Bonds, Loyola Marymount University, Series 2001A, 0.000%, 10/01/39 - NPFG Insured 4,295 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 3,987,693 Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/33 9,000 California Health Facilities Financing Authority, 3/16 at 100.00 A+ 8,490,330 Revenue Bonds, Kaiser Permanante System, Series 2006, 5.250%, 3/01/45 1,550 California Statewide Community Development Authority, 7/18 at 100.00 AA- 1,599,259 Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 - FGIC Insured 25,000 California, Various Purpose General Obligation Bonds, 3/16 at 100.00 A 22,266,750 Series 2005, 4.750%, 3/01/35 - NPFG Insured (UB) 10,445 Castaic Lake Water Agency, California, Certificates of No Opt. Call AA 3,175,280 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 AA 3,176,525 California, General Obligation Bonds, Series 2003B, 0.000%, 8/01/26 - FGIC Insured 5,000 Golden State Tobacco Securitization Corporation, 6/13 at 100.00 AAA 5,548,550 California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B, 5.000%, 6/01/38 (Pre-refunded 6/01/13) - AMBAC Insured 1,000 Golden State Tobacco Securitization Corporation, 6/17 at 100.00 BBB 664,390 California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47 Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A: 3,500 0.000%, 6/01/26 - FSA Insured No Opt. Call AAA 1,312,465 3,000 5.000%, 6/01/45 6/15 at 100.00 A- 2,584,230
Nuveen Investments 43 NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 1,500 Lincoln Unified School District, Placer County, No Opt. Call N/R $ 457,410 California, 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, 1/10 at 100.00 AA- (4) 491,470 Electric Plant Revenue Bonds, Second Series 1993, 4.750%, 10/15/20 (ETM) 995 Los Angeles Department of Water and Power, California, 1/10 at 100.00 AA- (4) 998,592 Electric Plant Revenue Bonds, Series 1994, 5.375%, 2/15/34 (ETM) 2,200 M-S-R Energy Authority, California, Gas Revenue Bonds, No Opt. Call A 2,349,006 Citigroup Prepay Contracts, Series 2009B, 6.500%, 11/01/39 14,000 New Haven Unified School District, California, General No Opt. Call AAA 3,073,700 Obligation Refunding Bonds, Series 2009, 0.000%, 8/01/34 - AGC Insured 1,000 Pajaro Valley Unified School District, Santa Cruz No Opt. Call AAA 306,980 County, California, General Obligation Bonds, Series 2005B, 0.000%, 8/01/29 - FSA Insured 8,040 Placentia-Yorba Linda Unified School District, Orange No Opt. Call A+ 1,712,198 County, 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 5.650%, 1/15/17 - NPFG Insured 1/14 at 102.00 A 4,917,500 26,000 0.000%, 1/15/35 - NPFG Insured No Opt. Call A 4,050,800 5,000 San Jose-Evergreen Community College District, Santa 9/15 at 50.47 Aa2 1,664,050 Clara County, California, General Obligation Bonds, Series 2005A, 0.000%, 9/01/28 - NPFG Insured 4,825 Santa Monica Community College District, Los Angeles 8/15 at 61.27 AA 1,946,936 County, California, General Obligation Bonds, Series 2005C, 0.000%, 8/01/25 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 176,205 Total California 90,890,714 ------------------------------------------------------------------------------------------------------------------------------ COLORADO - 7.0% (4.4% OF TOTAL INVESTMENTS) 1,085 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 BBB 971,954 Bonds, Series 2006, 5.250%, 10/01/40 - SYNCORA GTY Insured 3,000 Broomfield, Colorado, Master Facilities Lease Purchase 12/09 at 100.00 A1 3,008,580 Agreement, Certificates of Participation, Series 1999, 5.750%, 12/01/24 - AMBAC Insured 6,285 Broomfield, Colorado, Sales and Use Tax Revenue 12/12 at 100.00 A1 6,437,600 Refunding 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 A+ 11,594,669 Refunding Bonds, Series 2000A, 6.000%, 11/15/18 - AMBAC Insured (Alternative Minimum Tax) E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B: 6,200 0.000%, 9/01/22 - NPFG Insured No Opt. Call A 2,766,316 9,000 0.000%, 9/01/30 - NPFG Insured No Opt. Call A 2,216,340 15,960 0.000%, 9/01/33 - NPFG Insured No Opt. Call A 3,139,013 20,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 Aaa 6,245,000 Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) - NPFG Insured E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B: 3,800 0.000%, 9/01/27 - NPFG Insured 9/20 at 67.94 A 1,179,102 13,300 0.000%, 9/01/31 - NPFG Insured 9/20 at 53.77 A 3,030,139 6,250 0.000%, 9/01/32 - NPFG Insured 9/20 at 50.83 A 1,321,875 10,000 0.000%, 3/01/36 - NPFG Insured 9/20 at 41.72 A 1,647,000 ------------------------------------------------------------------------------------------------------------------------------ 106,345 Total Colorado 43,557,588 ------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.5% (0.8% OF TOTAL INVESTMENTS) 10,000 Washington Convention Center Authority, District of 10/16 at 100.00 A 9,255,200 Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series 2007A, 4.500%, 10/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.2% (0.7% OF TOTAL INVESTMENTS) 8,550 Florida Housing Finance Corporation, Homeowner Mortgage 1/17 at 100.00 AA+ 7,428,582 Revenue Bonds, Series 2008, Trust 1191, 5.695%, 7/01/32 (Alternative Minimum Tax) (IF) ------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 4.9% (3.1% OF TOTAL INVESTMENTS) 15,000 Atlanta, Georgia, Airport General Revenue Refunding 1/10 at 101.00 A+ (4) 15,284,550 Bonds, Series 2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) - FGIC Insured
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ GEORGIA (continued) $ 14,330 Fulton County Facilities Corporation, Georgia, 11/10 at 101.00 AA- $ 15,211,582 Certificates of Participation, Public Purpose Project, Series 1999, 5.500%, 11/01/18 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ 29,330 Total Georgia 30,496,132 ------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 14.6% (9.1% OF TOTAL INVESTMENTS) 4,595 Bolingbrook, Illinois, General Obligation Refunding No Opt. Call A 1,347,668 Bonds, Series 2002B, 0.000%, 1/01/32 - FGIC Insured 4,600 Chicago Board of Education, Illinois, Unlimited Tax No Opt. Call AA- 2,717,956 General Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/20 - FGIC Insured 4,000 Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 7/13 at 100.00 AA+ 4,026,360 2003A, 5.000%, 1/01/33 - AMBAC Insured 2,300 Chicago, Illinois, Motor Fuel Tax Revenue Refunding No Opt. Call AA+ 2,486,507 Bonds, Series 1993, 5.375%, 1/01/14 - AMBAC Insured 5,250 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1/10 at 100.50 A 5,267,378 1998B, 5.000%, 1/01/28 - NPFG Insured 10,000 Illinois Finance Authority, Illinois, Northwestern 12/15 at 100.00 AAA 10,167,400 University, Revenue Bonds, 5.000%, Series 2006, 12/01/42 (UB) 38,645 Illinois, General Obligation Bonds, Illinois FIRST 4/10 at 100.00 AA- 39,031,836 Program, Series 2000, 5.500%, 4/01/25 - NPFG 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 Aa3 5,668,341 6,780 0.000%, 1/01/24 - FSA Insured 1/15 at 63.44 Aa3 3,203,889 1,975 Lake County Community High School District 127, No Opt. Call AAA 2,418,072 Grayslake, 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: 6,500 0.000%, 6/15/25 - NPFG Insured 6/22 at 101.00 AAA 4,938,895 3,270 5.000%, 12/15/28 - NPFG Insured 6/12 at 101.00 AAA 3,339,324 3,700 0.000%, 6/15/30 - NPFG Insured No Opt. Call AAA 1,196,321 3,280 0.000%, 6/15/37 - NPFG Insured No Opt. Call AAA 692,506 11,715 0.000%, 12/15/38 - NPFG Insured No Opt. Call AAA 2,273,061 9,170 0.000%, 6/15/39 - NPFG Insured No Opt. Call AAA 1,729,829 ------------------------------------------------------------------------------------------------------------------------------ 126,010 Total Illinois 90,505,343 ------------------------------------------------------------------------------------------------------------------------------ INDIANA - 2.7% (1.7% OF TOTAL INVESTMENTS) 4,695 Indiana Educational Facilities Authority, Revenue Bonds, 2/11 at 100.00 A 4,775,285 Butler University, Series 2001, 5.500%, 2/01/26 - NPFG Insured 4,030 Indiana Finance Authority Health System Revenue Bonds 11/19 at 100.00 Aa3 3,934,811 Series 2009A (Sisters of St. Francis Health Services, Inc. Obligated Group), 5.250%, 11/01/39 (WI/DD, Settling 11/05/09) 6,000 Indiana Finance Authority, Revenue and Refunding Bonds, 12/19 at 100.00 AA 5,859,840 Trinity Health Credit Group, Series 2009A, 5.250%, 12/01/38 (WI/DD, Settling 11/16/09) 2,000 Petersburg, Indiana, Pollution Control Revenue Refunding 8/11 at 102.00 A3 2,037,980 Bonds, Indianapolis Power and Light Company, Series 1991, 5.750%, 8/01/21 ------------------------------------------------------------------------------------------------------------------------------ 16,725 Total Indiana 16,607,916 ------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.8% (0.5% OF TOTAL INVESTMENTS) 970 Iowa Finance Authority, Health Facility Revenue Bonds, 7/16 at 100.00 BB+ 800,541 Care Initiatives Project, Series 2006A, 5.000%, 7/01/19 5,000 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 4,309,000 Revenue Bonds, Series 2005B, 5.600%, 6/01/34 ------------------------------------------------------------------------------------------------------------------------------ 5,970 Total Iowa 5,109,541 ------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,500 Kansas Development Finance Authority, Water Pollution 11/12 at 100.00 AAA 2,763,800 Control 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 472,700 Medical Center, Series 2006, 4.625%, 10/01/31 ------------------------------------------------------------------------------------------------------------------------------ 3,000 Total Kansas 3,236,500 ------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 45 NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.9% (1.2% OF TOTAL INVESTMENTS) Jefferson County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2000A: $ 3,045 5.250%, 7/01/17 (Pre-refunded 1/01/10) - FSA Insured 1/10 at 101.00 AAA $ 3,101,119 7,490 5.250%, 7/01/20 (Pre-refunded 1/01/10) - FSA Insured 1/10 at 101.00 AAA 7,628,041 1,000 Kentucky Economic Development Finance Authority, 6/18 at 100.00 AAA 1,062,610 Louisville Arena Project Revenue Bonds, Louisville Arena Authority, Inc., Series 2008A-1, 6.000%, 12/01/38 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------ 11,535 Total Kentucky 11,791,770 ------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.5% (1.5% OF TOTAL INVESTMENTS) 7,415 Louisiana Local Government Environmental Facilities and 12/12 at 100.00 A 7,364,504 Community Development Authority, Revenue Bonds, Baton Rouge Community College Facilities Corporation, Series 2002, 5.000%, 12/01/32 - NPFG Insured 3,350 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 A 3,287,422 Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/33 - NPFG Insured 5,000 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 BBB 4,525,250 Tobacco Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 ------------------------------------------------------------------------------------------------------------------------------ 15,765 Total Louisiana 15,177,176 ------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.1% (0.7% OF TOTAL INVESTMENTS) 4,410 Maryland Community Development Administration, 3/17 at 100.00 Aa2 4,136,580 Department of Housing and Community Development, Residential Revenue Bonds, Series 2007D, 4.900%, 9/01/42 (Alternative Minimum Tax) 2,500 Maryland Department of Transportation, Consolidated No Opt. Call AAA 2,919,725 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 ------------------------------------------------------------------------------------------------------------------------------ 6,910 Total Maryland 7,056,305 ------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 4.3% (2.7% OF TOTAL INVESTMENTS) 440 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA 446,464 Bonds, Series 2000A, 5.250%, 7/01/30 Massachusetts Bay Transportation Authority, Assessment Bonds, Series 2000A: 4,150 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 Aa1 (4) 4,287,407 660 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 Aa1 (4) 681,853 11,505 Massachusetts Turnpike Authority, Metropolitan Highway 1/10 at 100.00 A 10,852,321 System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - NPFG Insured 10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AA+ (4) 10,480,800 Bonds, Series 2000A, 5.750%, 8/01/39 (Pre-refunded 8/01/10) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------ 26,755 Total Massachusetts 26,748,845 ------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 2.5% (1.6% OF TOTAL INVESTMENTS) 5,000 Detroit Water Supply System, Michigan, Water Supply 7/16 at 100.00 AAA 4,701,900 System Revenue Bonds, Series 2006D, 4.625%, 7/01/32 - FSA Insured 2,090 Grand Rapids Building Authority, Kent County, Michigan, 8/10 at 100.00 AA (4) 2,167,811 Limited Tax General Obligation Bonds, Series 2000, 5.375%, 8/01/17 (Pre-refunded 8/01/10) - AMBAC Insured 5,000 Michigan State Hospital Finance Authority, Hospital 11/19 at 100.00 A1 4,826,800 Revenue Bonds, Henry Ford Health System, Refunding Series 2009, 5.750%, 11/15/39 (WI/DD, Settling 11/03/09) 3,050 Michigan Tobacco Settlement Finance Authority, Tobacco 6/18 at 100.00 Baa3 2,692,052 Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,339,923 Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 ------------------------------------------------------------------------------------------------------------------------------ 16,290 Total Michigan 15,728,486 ------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 8.3% (5.2% OF TOTAL INVESTMENTS) 930 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A 948,879 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) 31,171,180 Healthcare System Revenue Bonds, Fairview Hospital and Healthcare Services, Series 2000A, 6.375%, 11/15/29 (Pre-refunded 11/15/10) 1,730 Minnesota Housing Finance Agency, Single Family 1/11 at 101.00 AA+ 1,754,099 Remarketed 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 14,320,323 5.125%, 11/01/16
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ MINNESOTA (continued) $ 2,810 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 103.00 AAA $ 3,378,913 Sales Tax Revenue Refunding Bonds, Civic Center Project, Series 1996, 7.100%, 11/01/23 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------ 48,215 Total Minnesota 51,573,394 ------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.0% (0.6% OF TOTAL INVESTMENTS) 5,900 Mississippi Business Finance Corporation, Pollution 4/10 at 100.00 BBB 5,906,372 Control Revenue Refunding Bonds, System Energy Resources Inc. Project, Series 1998, 5.875%, 4/01/22 ------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.7% (0.4% OF TOTAL INVESTMENTS) Kansas City Municipal Assistance Corporation, Missouri, Leasehold Revenue Bonds, Series 2004B-1: 8,000 0.000%, 4/15/27 - AMBAC Insured No Opt. Call AA- 2,963,440 5,000 0.000%, 4/15/31 - AMBAC Insured No Opt. Call AA- 1,400,900 ------------------------------------------------------------------------------------------------------------------------------ 13,000 Total Missouri 4,364,340 ------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.8% (1.1% OF TOTAL INVESTMENTS) 11,690 Omaha Convention Hotel Corporation, Nebraska, Convention 2/17 at 100.00 A1 11,188,265 Center Revenue Bonds, Series 2007, 5.000%, 2/01/35 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ NEVADA - 1.5% (0.9% OF TOTAL INVESTMENTS) 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 Caa2 937,738 8,500 0.000%, 1/01/26 - AMBAC Insured No Opt. Call Caa2 604,010 7,860 0.000%, 1/01/27 - AMBAC Insured No Opt. Call Caa2 508,856 21,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 Caa2 4,305,210 2,135 Reno, Nevada, Capital Improvement Revenue Bonds, Series 6/15 at 33.61 A 296,253 2005B, 0.000%, 6/01/37 - FGIC Insured 2,500 Reno, Nevada, Health Facilities Revenue Bonds, Catholic 7/17 at 100.00 AAA 2,688,850 Healthcare West, Trust 2634, 18.374%, 7/01/31 - BHAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------ 48,120 Total Nevada 9,340,917 ------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 6.9% (4.3% OF TOTAL INVESTMENTS) 18,400 New Jersey Health Care Facilities Financing Authority, 1/17 at 35.47 BB+ 1,918,568 Revenue Bonds, Saint Barnabas Health Care System, Series 2006A, 0.000%, 7/01/37 18,000 New Jersey Transportation Trust Fund Authority, 6/10 at 100.00 AAA 18,613,080 Transportation System Bonds, Series 2000B, 5.750%, 6/15/17 (Pre-refunded 6/15/10) 35,000 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 8,132,600 Transportation System Bonds, Series 2006C, 0.000%, 12/15/34 - FSA Insured 5,000 New Jersey Turnpike Authority, Revenue Bonds, Growth and 1/17 at 100.00 A+ 3,865,250 Income Securities, Series 2004B, 5.150%, 1/01/35 - AMBAC Insured 3,000 Rahway Valley Sewerage Authority, New Jersey, Sewer No Opt. Call A1 1,287,630 Revenue Bonds, Series 2005A, 0.000%, 9/01/25 - NPFG Insured 3,525 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 AAA 3,979,020 Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/42 (Pre-refunded 6/01/12) 2,100 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 AAA 2,380,728 Tobacco Settlement Asset-Backed Bonds, Series 2003, 6.375%, 6/01/32 (Pre-refunded 6/01/13) 4,000 Tobacco Settlement Financing Corporation, New Jersey, 6/17 at 100.00 BBB 2,699,360 Tobacco Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/41 ------------------------------------------------------------------------------------------------------------------------------ 89,025 Total New Jersey 42,876,236 ------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.7% (1.0% OF TOTAL INVESTMENTS) 5,925 New Mexico Hospital Equipment Loan Council, Hospital 8/11 at 101.00 AA- (4) 6,461,094 Revenue Bonds, Presbyterian Healthcare Services, Series 2001A, 5.500%, 8/01/21 (Pre-refunded 8/01/11) 3,610 University of New Mexico, Revenue Refunding Bonds, No Opt. Call AA 3,845,733 Series 1992A, 6.250%, 6/01/12 ------------------------------------------------------------------------------------------------------------------------------ 9,535 Total New Mexico 10,306,827 ------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 4.3% (2.7% OF TOTAL INVESTMENTS) 3,000 Long Island Power Authority, New York, Electric System 6/16 at 100.00 A- 3,035,100 General Revenue Bonds, Series 2006B, 5.000%, 12/01/35 5 New York City, New York, General Obligation Bonds, 1/10 at 100.00 AA 5,019 Fiscal Series 1997H, 6.125%, 8/01/25
Nuveen Investments 47 NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) New York City, New York, General Obligation Bonds, Fiscal Series 2002G: $ 1,000 5.000%, 8/01/17 8/12 at 100.00 AA $ 1,039,920 6,530 5.750%, 8/01/18 8/12 at 100.00 AA 7,117,308 5,000 New York City, New York, General Obligation Bonds, 8/12 at 100.00 AA 5,470,700 Fiscal Series 2003A, 5.750%, 8/01/16 10,000 Port Authority of New York and New Jersey, Special 12/09 at 100.00 A 10,163,100 Project Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.750%, 12/01/22 - NPFG Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 25,535 Total New York 26,831,147 ------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.6% (1.6% OF TOTAL INVESTMENTS) 1,900 Charlotte-Mecklenburg Hospital Authority, North 1/15 at 100.00 AAA 2,166,304 Carolina, Healthcare System Revenue Bonds, DBA Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15) 4,000 North Carolina Medical Care Commission, Health System 10/17 at 100.00 AA 3,786,320 Revenue Bonds, Mission St. Joseph's Health System, Series 2007, 4.500%, 10/01/31 (UB) 7,500 North Carolina Municipal Power Agency 1, Catawba 1/13 at 100.00 A 7,810,050 Electric Revenue Bonds, Series 2003A, 5.250%, 1/01/19 - NPFG Insured 1,900 North Carolina Turnpike Authority, Triangle Expressway 1/19 at 100.00 AAA 1,997,926 System Senior Lien Revenue Bonds, Series 2009A, 5.750%, 1/01/39 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------ 15,300 Total North Carolina 15,760,600 ------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 4.6% (2.8% OF TOTAL INVESTMENTS) 23,035 Fargo, North Dakota, Health System Revenue Bonds, 6/10 at 101.00 AAA 23,247,383 MeritCare 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) - NPFG Insured 8/10 at 100.00 AA (4) 2,320,382 2,450 5.750%, 8/01/19 (Pre-refunded 8/01/10) - NPFG Insured 8/10 at 100.00 AA (4) 2,550,230 ------------------------------------------------------------------------------------------------------------------------------ 27,715 Total North Dakota 28,117,995 ------------------------------------------------------------------------------------------------------------------------------ OHIO - 7.6% (4.7% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: 3,670 5.375%, 6/01/24 6/17 at 100.00 BBB 3,355,518 110 5.125%, 6/01/24 6/17 at 100.00 BBB 97,973 1,250 5.875%, 6/01/30 6/17 at 100.00 BBB 1,087,963 1,215 5.750%, 6/01/34 6/17 at 100.00 BBB 1,021,754 4,300 6.000%, 6/01/42 6/17 at 100.00 BBB 3,316,031 4,750 5.875%, 6/01/47 6/17 at 100.00 BBB 3,519,370 10,000 Columbus City School District, Franklin County, Ohio, 12/16 at 100.00 AAA 9,369,800 General Obligation Bonds, Series 2006, 4.250%, 12/01/32 - FSA Insured (UB) 16,140 Montgomery County, Ohio, Hospital Facilities Revenue No Opt. Call A 17,218,152 Bonds, Kettering Medical Center, Series 1999, 6.300%, 4/01/12 7,500 Ohio State, Hospital Revenue Refunding Bonds, Cleveland 1/19 at 100.00 Aa2 7,767,000 Clinic Health System Obligated Group, Series 2009A, 5.500%, 1/01/39 ------------------------------------------------------------------------------------------------------------------------------ 48,935 Total Ohio 46,753,561 ------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,675 Oklahoma Development Finance Authority, Health System 8/18 at 100.00 AA- 1,709,137 Revenue Bonds, Integris Baptist Medical Center, Series 2008B, 5.250%, 8/15/38 ------------------------------------------------------------------------------------------------------------------------------ OREGON - 2.6% (1.6% OF TOTAL INVESTMENTS) 5,000 Oregon Health Sciences University, Revenue Bonds, Series 1/13 at 100.00 A 5,073,900 2002A, 5.250%, 7/01/22 - NPFG Insured Portland, Oregon, Water System Revenue Bonds, Series 2000A: 6,780 5.375%, 8/01/18 (Pre-refunded 8/01/10) 8/10 at 100.00 Aa1 (4) 7,038,250 3,880 5.500%, 8/01/20 (Pre-refunded 8/01/10) 8/10 at 100.00 Aa1 (4) 4,031,436 ------------------------------------------------------------------------------------------------------------------------------ 15,660 Total Oregon 16,143,586 ------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 4.6% (2.9% OF TOTAL INVESTMENTS) 3,000 Allegheny County Hospital Development Authority, No Opt. Call Aa3 3,073,470 Pennsylvania, University of Pittsburgh Medical Center Revenue Bonds, Series 2009A, 5.625%, 8/15/39
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA (continued) $ 5,000 Delaware County Industrial Development Authority, 1/10 at 100.00 BB+ $ 4,748,650 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 N/R (4) 5,235,350 Acquisition Revenue Bonds, Series 2000, 5.875%, 12/15/30 (Pre-refunded 12/15/10) - NPFG Insured 10,000 Pennsylvania Turnpike Commission, Turnpike Subordinate 6/26 at 100.00 AAA 7,282,800 Revenue Bonds, Series 2009C, 0.000%, 6/01/33 - FSA Insured 7,550 Pennsylvania, General Obligation Bonds, Second Series 9/11 at 101.00 AA (4) 8,226,782 2001, 5.000%, 9/15/14 (Pre-refunded 9/15/11) ------------------------------------------------------------------------------------------------------------------------------ 30,550 Total Pennsylvania 28,567,052 ------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 5.4% (3.4% OF TOTAL INVESTMENTS) 3,330 Puerto Rico Aqueduct and Sewerage Authority, Revenue 7/18 at 100.00 BBB- 3,404,126 Bonds, Senior Lien Series 2008A, 6.000%, 7/01/44 Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds, Series 2003: 8,200 4.500%, 12/01/23 (UB) 12/13 at 100.00 AAA 9,038,040 4,300 4.500%, 12/01/23 (UB) 12/13 at 100.00 AA+ 4,265,299 10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/19 at 100.00 A+ 10,503,500 Revenue Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42 6,555 Puerto Rico, The Children's Trust Fund, Tobacco 5/12 at 100.00 BBB 6,256,092 Settlement Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------ 32,385 Total Puerto Rico 33,467,057 ------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 0.4% (0.2% OF TOTAL INVESTMENTS) 2,960 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 2,690,314 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 6.3% (3.9% OF TOTAL INVESTMENTS) 24,730 Greenville County School District, South Carolina, 12/12 at 101.00 Aaa 28,284,443 Installment Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22 (Pre-refunded 12/01/12) 21,570 Piedmont Municipal Power Agency, South Carolina, No Opt. Call A- 6,623,931 Electric Revenue Bonds, Series 2004A-2, 0.000%, 1/01/30 - AMBAC Insured 3,560 South Carolina Public Service Authority, Revenue 7/13 at 100.00 Aa2 3,797,345 Refunding Bonds, Santee Cooper Electric System, Series 2003A, 5.000%, 1/01/20 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ 49,860 Total South Carolina 38,705,719 ------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.7% (0.5% OF TOTAL INVESTMENTS) 5,000 Knox County Health, Educational and Housing Facilities 7/13 at 100.00 BBB+ 4,625,600 Board, Tennessee, Hospital Revenue Bonds, East Tennessee Children's Hospital, Series 2003A, 5.000%, 7/01/23 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------ TEXAS - 15.8% (9.8% OF TOTAL INVESTMENTS) 2,500 Alliance Airport Authority, Texas, Special Facilities 12/12 at 100.00 CCC+ 1,494,125 Revenue Bonds, American Airlines Inc., Series 2007, 5.250%, 12/01/29 (Alternative Minimum Tax) 11,255 Brazos River Authority, Texas, Pollution Control Revenue 11/11 at 100.00 CCC 10,147,846 Refunding Bonds, TXU Electric Company, Series 2001C, 5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax) 1,000 Cedar Hill Independent School District, Dallas County, No Opt. Call AA- 290,370 Texas, 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 A 12,792,150 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 588,902 340 5.650%, 2/15/19 2/10 at 100.00 AAA 344,182 235 5.700%, 2/15/20 2/10 at 100.00 AAA 238,093 270 5.700%, 2/15/21 2/10 at 100.00 AAA 273,553
Nuveen Investments 49 NMO | Nuveen Municipal Market Opportunity Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) 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 $ 16,990,095 9,660 5.650%, 2/15/19 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 9,811,370 6,645 5.700%, 2/15/20 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 6,750,123 7,750 5.700%, 2/15/21 (Pre-refunded 2/15/10) 2/10 at 100.00 AAA 7,872,604 2,500 Comal Independent School District, Comal, Bexar, No Opt. Call Aaa 1,409,150 Guadalupe, Hays, and Kendall Counties, Texas, General Obligation Bonds, Series 2005A, 0.000%, 2/01/23 6,000 Dallas-Ft. Worth International Airport Facility 11/09 at 101.00 CCC+ 4,025,400 Improvement Corporation, Texas, Revenue Bonds, American Airlines Inc., Series 1999, 6.375%, 5/01/35 (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 1,337,706 4,000 0.000%, 8/15/31 8/16 at 46.64 Aaa 1,275,600 1,440 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call A- 337,146 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 1,323,374 Revenue Refunding Bonds, Series 2001A, 5.000%, 12/01/20 - FSA Insured 2,400 Houston, Texas, Senior Lien Airport System Revenue 7/18 at 100.00 AA- 2,496,240 Bonds, Refunding Series 2009A, 5.500%, 7/01/39 9,350 Leander Independent School District, Williamson and 8/15 at 39.50 AA- 2,711,220 Travis Counties, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/32 - FGIC Insured 6,000 Leander Independent School District, Williamson and 8/14 at 35.28 AAA 1,649,100 Travis Counties, Texas, General Obligation Bonds, Series 2006, 0.000%, 8/15/33 4,000 North Texas Thruway Authority, First Tier System Revenue 1/25 at 100.00 A2 2,942,040 Refunding Bonds, Capital Appreciation Series 2008I, 0.000%, 1/01/43 3,295 Tarrant County, Texas, Cultural & Educational Facilities 2/17 at 100.00 AA- 2,827,439 Financing Corporation, Revenue Bonds, Series 2007, Residuals 1760-3, 16.864%, 2/15/36 (IF) 5,000 White Settlement Independent School District, Tarrant 8/15 at 36.81 AAA 1,337,250 County, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/34 3,970 Wichita Falls, Wichita County, Texas, Priority Lien 8/11 at 100.00 AA- (4) 4,265,725 Water and Sewerage System Revenue Bonds, Series 2001, 5.000%, 8/01/21 (Pre-refunded 8/01/11) - 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 1,552,200 2,000 0.000%, 8/15/24 8/15 at 63.56 AAA 975,660 ------------------------------------------------------------------------------------------------------------------------------ 130,135 Total Texas 98,058,663 ------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.5% (0.3% OF TOTAL INVESTMENTS) 3,000 Riverton, Utah, Hospital Revenue Bonds, IHC Health 8/19 at 100.00 AA+ 2,929,740 Services, Inc., Series 2009, 5.000%, 8/15/41 (WI/DD, Settling 11/05/09) ------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 2.4% (1.5% OF TOTAL INVESTMENTS) 21,500 Metropolitan Washington DC Airports Authority, Virginia, 10/26 at 100.00 AAA 14,689,660 Dulles Toll Road Revenue Bonds, Series 2009C., 0.000%, 10/01/41 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 15.7% (9.7% OF TOTAL INVESTMENTS) 5,500 Clark County Public Utility District 1, Washington, 1/11 at 100.00 AAA 5,528,985 Generating System Revenue Refunding Bonds, Series 2000, 5.125%, 1/01/20 - FSA Insured 2,755 Cowlitz County, Washington, Special Sewerage Revenue No Opt. Call A 3,010,692 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 10,737,900 Bonds, Nuclear Project 3, Series 2001A, 5.500%, 7/01/17 - FSA Insured 2,500 King County, Washington, Sewer Revenue Bonds, Series 1/12 at 100.00 AA+ 2,614,525 2001, 5.000%, 1/01/23 - FGIC Insured 33,490 Port of Seattle, Washington, Revenue Bonds, Series 8/10 at 100.00 Aa2 (4) 34,828,595 2000A, 5.625%, 2/01/30 (Pre-refunded 8/01/10) - NPFG Insured 6,950 Port of Seattle, Washington, Revenue Bonds, Series 8/10 at 100.00 Aa2 6,971,406 2000B, 5.625%, 2/01/24 - NPFG Insured (Alternative Minimum Tax) (UB) 2,150 Seattle, Washington, General Obligation Refunding and 12/12 at 100.00 AAA 2,213,662 Improvement Bonds, Series 2002, 4.500%, 12/01/20
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) $ 3,000 Spokane County School District 81, Spokane, Washington, 6/15 at 100.00 AA $ 3,162,870 General Obligation Bonds, Series 2005, 5.000%, 6/01/24 - NPFG Insured 3,520 Washington State Healthcare Facilities Authority, 10/11 at 100.00 Aa3 (4) 3,804,205 Revenue Bonds, Children's Hospital and Regional Medical Center, Series 2001, 5.000%, 10/01/21 (Pre-refunded 10/01/11) - AMBAC Insured 10,895 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 11,029,988 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 9,000 Washington State, Motor Vehicle Fuel Tax General No Opt. Call AA+ 3,774,780 Obligation Bonds, Series 2003C, 0.000%, 6/01/28 - FGIC Insured 9,000 Washington, Motor Vehicle Fuel Tax General Obligation 1/12 at 100.00 AAA 9,584,010 Bonds, Series 2002C, 5.000%, 1/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------ 98,760 Total Washington 97,261,618 ------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 0.9% (0.6% OF TOTAL INVESTMENTS) 2,800 Badger Tobacco Asset Securitization Corporation, 6/12 at 100.00 AAA 3,059,587 Wisconsin, Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 (Pre-refunded 6/01/12) 1,755 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 1,479,043 Revenue Bonds, Divine Savior Healthcare, Series 2006, 4.750%, 5/01/25 1,250 Wisconsin Health and Educational Facilities Authority, 3/10 at 100.00 N/R 1,051,687 Revenue Bonds, United Lutheran Program for the Aging Inc., Series 1998, 5.700%, 3/01/28 ------------------------------------------------------------------------------------------------------------------------------ 5,805 Total Wisconsin 5,590,317 ------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.7% (0.4% OF TOTAL INVESTMENTS) 4,080 Campbell County, Wyoming Solid Waste Facilities Revenue 7/19 at 100.00 A+ 4,296,689 Bonds, Basin Electric Power Cooperative - Dry Fork Station Facilities, Series 2009A, 5.750%, 7/15/39 ------------------------------------------------------------------------------------------------------------------------------ $ 1,331,055 Total Investments (cost $1,011,308,429) - 161.1% 997,616,000 ===============--------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (7.9)% (48,745,000) ----------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.8% 17,122,916 ---------------------------------------------------------------------------------------------------------- Auction Rate Preferred Shares, at Liquidation Value - (56.0)% (5) (346,675,000) ----------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 619,318,916 ===========================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 34.8% N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. Nuveen Investments 51 NAD | Nuveen Dividend Advantage Municipal Fund | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 153.2% (99.9% OF TOTAL INVESTMENTS) ALABAMA - 0.3% (0.2% OF TOTAL INVESTMENTS) $ 1,600 Alabama 21st Century Authority, Tobacco Settlement 6/10 at 102.00 A- $ 1,606,384 Revenue Bonds, Series 2000, 5.750%, 12/01/20 ------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.1% (0.1% OF TOTAL INVESTMENTS) 750 Alaska Housing Finance Corporation, General Housing 12/14 at 100.00 AA 765,038 Purpose Bonds, Series 2005A, 5.250%, 12/01/34 - FGIC Insured (UB) ------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.2% (0.8% OF TOTAL INVESTMENTS) 2,350 Phoenix, Arizona, Civic Improvement Corporation, Senior 7/18 at 100.00 AA- 2,366,286 Lien Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/33 5,000 Salt Verde Financial Corporation, Arizona, Senior Gas No Opt. Call A 4,276,750 Revenue Bonds, Series 2007, 5.000%, 12/01/37 ------------------------------------------------------------------------------------------------------------------------------ 7,350 Total Arizona 6,643,036 ------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 6.6% (4.3% OF TOTAL INVESTMENTS) 1,535 Alameda Corridor Transportation Authority, California, No Opt. Call A 274,227 Senior Lien Revenue Bonds, Series 1999A, 0.000%, 10/01/37 - NPFG Insured 6,000 Anaheim Public Finance Authority, California, No Opt. Call AAA 1,999,380 Subordinate Lease Revenue Bonds, Public Improvement Project, Series 1997C, 0.000%, 9/01/28 - FSA Insured 6,750 California Statewide Community Development Authority, 8/19 at 100.00 AA 7,242,547 Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38 65 California, General Obligation Bonds, Series 1997, 1/10 at 100.00 A 65,058 5.000%, 10/01/18 - AMBAC Insured 5,000 California, General Obligation Bonds, Series 2005, 3/16 at 100.00 A 4,778,550 5.000%, 3/01/31 Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: 5,700 5.000%, 6/01/33 6/17 at 100.00 BBB 4,349,555 1,000 5.125%, 6/01/47 6/17 at 100.00 BBB 664,390 Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A: 3,500 0.000%, 6/01/26 - FSA Insured No Opt. Call AAA 1,312,464 9,925 5.000%, 6/01/45 6/15 at 100.00 AAA 8,815,781 2,200 M-S-R Energy Authority, California, Gas Revenue Bonds, No Opt. Call A 2,349,005 Citigroup Prepay Contracts, Series 2009C, 6.500%, 11/01/39 1,495 Palmdale Civic Authority, California, Revenue 1/10 at 100.00 A 1,498,677 Refinancing Bonds, Civic Center Project, Series 1997A, 5.375%, 7/01/12 - NPFG Insured 17,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call A 2,648,600 County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/35 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 60,170 Total California 35,998,234 ------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.6% (3.7% OF TOTAL INVESTMENTS) 1,125 Antelope Heights Metropolitan District, Colorado, 12/17 at 100.00 BBB- 959,590 Limited Tax General Obligation Bonds, Series 2007, 5.000%, 12/01/37 - RAAI Insured 3,330 Colorado Health Facilities Authority, Colorado, Revenue 7/19 at 100.00 AA 3,404,891 Bonds, Catholic Health Initiatives, Series 2009A, 5.500%, 7/01/34 (WI/DD, Settling 11/10/09) Denver City and County, Colorado, Airport Special Facilities Revenue Bonds, Rental Car Projects, Series 1999A: 2,170 6.000%, 1/01/12 - NPFG Insured (Alternative Minimum 1/10 at 100.50 A 2,197,688 Tax) 675 6.000%, 1/01/13 - NPFG Insured (Alternative Minimum 1/10 at 100.50 A 683,403 Tax) 1,475 Denver, Colorado, FHA-Insured Multifamily Housing 4/10 at 100.00 BB+ 1,409,834 Revenue 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 A 3,059,098 Bonds, Series 1997B, 0.000%, 9/01/25 - NPFG Insured 25,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 5,695,750 Bonds, Series 2000B, 0.000%, 9/01/31 - NPFG Insured 60,000 E-470 Public Highway Authority, Colorado, Toll Revenue No Opt. Call A 9,750,000 Bonds, Series 2004A, 0.000%, 3/01/36 - NPFG Insured
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ COLORADO (continued) $ 12,500 E-470 Public Highway Authority, Colorado, Toll Revenue 9/26 at 54.77 A $ 1,656,000 Bonds, Series 2006B, 0.000%, 9/01/38 - NPFG Insured 2,000 Metropolitan Football Stadium District, Colorado, Sales No Opt. Call A 1,913,440 Tax Revenue Bonds, Series 1999A, 0.000%, 1/01/12 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 116,790 Total Colorado 30,729,694 ------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.4% (0.3% OF TOTAL INVESTMENTS) 4,335 Mashantucket Western Pequot Tribe, Connecticut, 11/17 at 100.00 N/R 2,316,927 Subordinate Special Revenue Bonds, Series 2007A, 5.750%, 9/01/34 ------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 10.9% (7.1% OF TOTAL INVESTMENTS) 1,455 Florida Housing Finance Agency, Housing Revenue Bonds, 12/09 at 100.00 N/R 1,416,617 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 6/15 at 101.00 AAA 14,640,750 Capital Outlay Bonds, Series 2005E, 4.500%, 6/01/35 (UB) 2,500 Marion County Hospital District, Florida, Revenue Bonds, 10/17 at 100.00 A3 2,138,550 Munroe Regional Medical Center, Series 2007, 5.000%, 10/01/34 13,625 Martin County Industrial Development Authority, Florida, 12/09 at 100.00 BB+ 13,628,406 Industrial Development Revenue Bonds, Indiantown Cogeneration LP, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax) South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System Obligation Group, Series 2007: 22,000 5.000%, 8/15/37 (UB) 8/17 at 100.00 AA- 20,921,340 7,370 5.000%, 8/15/42 (UB) 8/17 at 100.00 AA- 6,918,588 ------------------------------------------------------------------------------------------------------------------------------ 61,950 Total Florida 59,664,251 ------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.6% (1.0% OF TOTAL INVESTMENTS) 5,000 Cobb County Development Authority, Georgia, Student 7/17 at 100.00 Baa3 4,324,350 Housing Revenue Bonds, KSU Village II Real Estate Foundation LLC Project, Series 2007A, 5.250%, 7/15/38 - AMBAC Insured 4,000 Forsyth County Water and Sewerage Authority, Georgia, 4/10 at 101.00 AA+ (4) 4,135,880 Revenue Bonds, Series 2000, 6.000%, 4/01/25 (Pre-refunded 4/01/10) ------------------------------------------------------------------------------------------------------------------------------ 9,000 Total Georgia 8,460,230 ------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS) 115 Idaho Housing and Finance Association, Single Family 1/10 at 101.00 Aa2 115,059 Mortgage Bonds, Series 1999E, 5.750%, 1/01/21 (Alternative Minimum Tax) 160 Idaho Housing and Finance Association, Single Family 1/10 at 100.00 Aa2 163,315 Mortgage Bonds, Series 2000D, 6.350%, 7/01/22 (Alternative Minimum Tax) 235 Idaho Housing and Finance Association, Single Family 7/10 at 100.00 Aaa 242,762 Mortgage Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 510 Total Idaho 521,136 ------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 30.8% (20.1% OF TOTAL INVESTMENTS) 2,020 Channahon, Illinois, Revenue Refunding Bonds, Morris 12/09 at 102.00 BBB+ 2,063,126 Hospital, Series 1999, 5.750%, 12/01/12 2,205 Chicago Board of Education, Illinois, Unlimited Tax No Opt. Call AA- 737,594 General Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1, 0.000%, 12/01/29 - FGIC Insured 7,250 Chicago Board of Education, Illinois, Unlimited Tax No Opt. Call AA- 7,961,660 General 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: 705 5.500%, 12/20/19 (Alternative Minimum Tax) 10/10 at 101.00 AA- 716,554 1,210 5.600%, 12/20/29 (Alternative Minimum Tax) 10/10 at 101.00 AA- 1,222,994 1,925 5.650%, 12/20/40 (Alternative Minimum Tax) 10/10 at 101.00 AA- 1,939,572 22,750 Chicago, Illinois, General Obligation Refunding Bonds, No Opt. Call AA- 25,399,010 Emergency Telephone System, Series 1999, 5.500%, 1/01/23 - FGIC Insured 2,620 Chicago, Illinois, Motor Fuel Tax Revenue Refunding No Opt. Call AA+ 2,832,455 Bonds, Series 1993, 5.375%, 1/01/14 - AMBAC Insured 3,340 Chicago, Illinois, Third Lien General Airport Revenue 1/16 at 100.00 A1 3,346,813 Bonds, O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 - FGIC Insured
Nuveen Investments 53 NAD | Nuveen Dividend Advantage Municipal Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 190 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aa3 $ 208,492 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 Aa3 (4) 921,082 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, 12/09 at 102.00 AA 510,934 General Obligation Bonds, Series 1999, 5.375%, 12/01/29 - NPFG Insured 3,935 Illinois Development Finance Authority, Local Government No Opt. Call Baa1 3,216,232 Program Revenue Bonds, Lake County School District 116 - Round Lake, Series 1999A, 0.000%, 1/01/15 - NPFG Insured 2,000 Illinois Finance Authority, Revenue Bonds, Children's 8/18 at 100.00 AAA 1,997,880 Memorial Hospital, Series 2008A, 5.250%, 8/15/47 - AGC Insured (UB) 1,000 Illinois Finance Authority, Revenue Bonds, Edward Health 2/18 at 100.00 A+ 962,860 Services Corporation, Series 2008A, 5.500%, 2/01/40 - AMBAC Insured 5,570 Illinois Finance Authority, Revenue Bonds, University of 7/14 at 100.00 Aa1 5,659,955 Chicago, Series 2004A, 5.000%, 7/01/34 9,820 Illinois Health Facilities Authority, Remarketed Revenue 8/11 at 103.00 Aa1 10,272,505 Bonds, University of Chicago Project, Series 1985A, 5.500%, 8/01/20 5,595 Illinois Health Facilities Authority, Revenue Bonds, 1/10 at 100.00 A 5,261,705 Loyola University Health System, Series 1997A, 5.000%, 7/01/24 - NPFG Insured 5,490 Illinois Health Facilities Authority, Revenue Bonds, 2/10 at 100.00 A 5,493,293 Sarah Bush Lincoln Health Center, Series 1996B, 5.500%, 2/15/16 1,500 Illinois Housing Development Authority, Housing Finance 1/15 at 100.00 A+ 1,412,580 Bonds, Series 2005E, 4.800%, 1/01/36 - FGIC Insured 2,000 Kane & DeKalb Counties, Illinois, Community United No Opt. Call A3 1,087,520 School District 301, General Obligation Bonds, Series 2006, 0.000%, 12/01/21 - NPFG Insured 11,345 Lake and McHenry Counties Community Unit School District 1/15 at 60.14 Aa3 5,155,167 118, Wauconda, Illinois, General Obligation Bonds, Series 2005B, 0.000%, 1/01/25 - FSA Insured 3,000 Lombard Public Facilities Corporation, Illinois, First 1/16 at 100.00 N/R 2,552,670 Tier Conference Center and Hotel Revenue Bonds, Series 2005A-1, 7.125%, 1/01/36 22,500 Metropolitan Pier and Exposition Authority, Illinois, 12/09 at 101.00 AAA 22,831,875 Revenue 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: 12,250 0.000%, 12/15/22 - NPFG Insured No Opt. Call A 6,351,134 13,000 0.000%, 12/15/23 - NPFG Insured No Opt. Call A 6,313,710 1,840 Oak Park, Illinois, General Obligation Bonds, Series 11/15 at 54.14 AA- 720,285 2005B, 0.000%, 11/01/27 - SYNCORA GTY Insured Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1999: 22,650 5.750%, 6/01/19 - FSA Insured No Opt. Call AAA 26,864,485 3,500 5.750%, 6/01/23 - FSA Insured No Opt. Call AAA 4,163,040 1,300 Schaumburg, Illinois, General Obligation Bonds, Series 12/14 at 100.00 AA+ 1,336,685 2004B, 5.250%, 12/01/34 - FGIC Insured 10,000 Will County Community High School District 210 No Opt. Call Aa3 5,138,700 Lincoln-Way, Illinois, General Obligation Bonds, Series 2006, 0.000%, 1/01/23 - FSA Insured 4,500 Will County School District 122, New Lenox, Illinois, No Opt. Call Aa3 3,122,145 General Obligation Bonds, Series 2000B, 0.000%, 11/01/18 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------ 188,320 Total Illinois 167,774,712 ------------------------------------------------------------------------------------------------------------------------------ INDIANA - 5.4% (3.5% OF TOTAL INVESTMENTS) 2,025 Hospital Authority of Delaware County, Indiana, Hospital 8/10 at 100.00 N/R 1,969,475 Revenue Refunding Bonds, Cardinal Health System, Series 1997, 5.000%, 8/01/16 - AMBAC Insured 4,000 Indiana Finance Authority, Revenue and Refunding Bonds, 12/19 at 100.00 AA 3,906,560 Trinity Health Credit Group, Series 2009A, 5.250%, 12/01/38 (WI/DD, Settling 11/16/09) 8,000 Indiana Health Facility Financing Authority, Hospital 8/10 at 101.50 A+ (4) 8,440,400 Revenue Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/26 (Pre-refunded 8/15/10) - NPFG Insured 2,000 Indiana Health Facility Financing Authority, Revenue 3/17 at 100.00 BBB 1,907,520 Bonds, Community Foundation of Northwest Indiana, Series 2007, 5.500%, 3/01/37
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ INDIANA (continued) $ 6,830 Indiana Housing and Community Development Authority, 1/17 at 100.00 Aaa $ 6,417,537 Single Family Mortgage Revenue Bonds, Series 2007A-1, Drivers 1847, 7.713%, 7/01/32 (Alternative Minimum Tax) (IF) 6,675 Indiana Municipal Power Agency, Power Supply Revenue 1/17 at 100.00 A+ 6,632,213 Bonds, Series 2007A, 5.000%, 1/01/42 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 29,530 Total Indiana 29,273,705 ------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.9% (0.6% OF TOTAL INVESTMENTS) 7,000 Iowa Tobacco Settlement Authority, Asset Backed 6/15 at 100.00 BBB 5,146,890 Settlement Revenue Bonds, Series 2005C, 5.625%, 6/01/46 ------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.3% (0.8% OF TOTAL INVESTMENTS) 3,825 Wichita, Kansas, Water and Sewerage Utility Revenue 4/10 at 100.00 A1 3,826,224 Bonds, Series 1999, 4.000%, 10/01/18 - FGIC Insured 3,000 Wyandotte County-Kansas City Unified Government, Kansas, 12/15 at 100.00 N/R 3,034,380 Sales Tax Special Obligation Bonds, Redevelopment Project Area B, Series 2005, 5.000%, 12/01/20 ------------------------------------------------------------------------------------------------------------------------------ 6,825 Total Kansas 6,860,604 ------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.7% (1.1% OF TOTAL INVESTMENTS) 3,030 Hardin County School District Finance Corporation, 2/10 at 101.00 Aa3 (4) 3,102,205 Kentucky, 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 4/10 at 100.00 BB- 1,706,459 5,000 5.875%, 10/01/22 4/10 at 100.00 BB- 4,296,600 ------------------------------------------------------------------------------------------------------------------------------ 9,880 Total Kentucky 9,105,264 ------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 7.7% (5.0% OF TOTAL INVESTMENTS) 2,245 Lafayette, Louisiana, Sales Tax Revenue Bonds, Public 5/10 at 101.50 AA (4) 2,338,841 Improvements, Series 2000B, 5.625%, 5/01/25 (Pre-refunded 5/01/10) - FGIC Insured 1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,883,928 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 A 5,250,062 Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/33 - NPFG Insured 9,000 Louisiana Public Facilities Authority, Revenue Bonds, 5/17 at 100.00 A3 8,462,160 Ochsner Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47 5,445 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, 5/16 at 100.00 AA 5,105,504 Series 2006A, 4.500%, 5/01/41 - FGIC Insured (UB) 13,570 Louisiana Transportation Authority, Senior Lien Toll 12/10 at 38.73 A+ 4,830,242 Road Revenue Bonds, Series 2005B, 0.000%, 12/01/28 - AMBAC Insured Tobacco Settlement Financing Corporation, Louisiana, Tobacco Settlement Asset-Backed Bonds, Series 2001B: 9,545 5.500%, 5/15/30 5/11 at 101.00 BBB 9,581,748 5,000 5.875%, 5/15/39 5/11 at 101.00 BBB 4,525,250 ------------------------------------------------------------------------------------------------------------------------------ 51,905 Total Louisiana 41,977,735 ------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.7% (1.7% OF TOTAL INVESTMENTS) 1,440 Boston Industrial Development Financing Authority, 9/12 at 102.00 N/R 1,038,254 Massachusetts, Subordinate Revenue Bonds, Crosstown Center Project, Series 2002, 8.000%, 9/01/35 (Alternative Minimum Tax) 4,365 Massachusetts Health and Educational Facilities 10/15 at 100.00 AAA 4,446,495 Authority, Revenue Bonds, Berkshire Health System, Series 2005F, 5.000%, 10/01/19 - AGC Insured 620 Massachusetts Health and Educational Facilities 7/18 at 100.00 A3 572,427 Authority, Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.125%, 7/01/33 3,000 Massachusetts Housing Finance Agency, Housing Bonds, 12/18 at 100.00 AA- 3,012,480 Series 2009F, 5.700%, 6/01/40 785 Massachusetts Port Authority, Special Facilities Revenue 3/10 at 100.00 A 681,592 Bonds, US Airways Group Inc., Series 1996A, 5.875%, 9/01/23 - NPFG Insured (Alternative Minimum Tax)
Nuveen Investments 55 NAD | Nuveen Dividend Advantage Municipal Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS (continued) Massachusetts Turnpike Authority, Metropolitan Highway System Revenue Bonds, Senior Series 1997A: $ 1,975 5.000%, 1/01/12 1/10 at 100.00 A- $ 1,979,701 2,200 5.125%, 1/01/17 - NPFG Insured 1/10 at 100.00 A 2,201,958 1,000 0.000%, 1/01/24 - NPFG Insured No Opt. Call A 444,190 205 Massachusetts Turnpike Authority, Metropolitan Highway 1/10 at 100.00 AA 205,021 System Revenue Bonds, Subordinate Series 1999A, 5.250%, 1/01/29 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ 15,590 Total Massachusetts 14,582,118 ------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 4.2% (2.7% OF TOTAL INVESTMENTS) 6,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 A 5,504,760 Revenue Bonds, Series 2005A, 5.000%, 7/01/35 - NPFG Insured 15,255 Michigan State Hospital Finance Authority, Hospital 2/10 at 100.00 BB- 11,773,046 Revenue Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/28 1,150 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,339,923 Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 4,000 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/09 at 100.50 A 4,032,720 Metropolitan Wayne County Airport, Series 1998A, 5.375%, 12/01/16 - NPFG Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 26,405 Total Michigan 22,650,449 ------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.4% (0.9% OF TOTAL INVESTMENTS) 6,375 Minneapolis Health Care System, Minnesota, Revenue 11/18 at 100.00 A 7,195,208 Bonds, Fairview Hospital and Healthcare Services, Series 2008A, 6.625%, 11/15/28 615 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 101.00 AA+ 623,807 Bonds, Series 1998H-1, 5.650%, 7/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 6,990 Total Minnesota 7,819,015 ------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 2.3% (1.5% 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 AA- 2,593,010 5,000 0.000%, 4/15/29 - AMBAC Insured No Opt. Call AA- 1,611,950 1,885 Missouri Health and Educational Facilities Authority, 6/11 at 101.00 AA- 1,927,394 Revenue 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: 300 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 324,882 2,185 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 2,366,224 3,670 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 3,974,390 ------------------------------------------------------------------------------------------------------------------------------ 20,040 Total Missouri 12,797,850 ------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.3% (0.2% OF TOTAL INVESTMENTS) 750 Montana Board of Housing, Single Family Mortgage Bonds, 12/09 at 100.00 AA+ 762,420 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 979,400 Student Loan Revenue Bonds, Subordinate Series 1999B, 6.400%, 12/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 1,750 Total Montana 1,741,820 ------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.2% (0.1% OF TOTAL INVESTMENTS) 800 NebHelp Inc., Nebraska, Senior Subordinate Bonds, No Opt. Call Aa2 828,600 Student Loan Program, Series 1993A-5A, 6.200%, 6/01/13 - NPFG Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ NEVADA - 1.5% (1.0% OF TOTAL INVESTMENTS) 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 Caa2 1,001,520 4,000 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 Caa2 820,040 3,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 Caa2 615,030 3,750 Henderson, Nevada, Healthcare Facility Revenue Refunding 7/17 at 100.00 AAA 4,333,875 Bonds, Catholic Healthcare West, Series 2007B, Trust 2633, 18.647%, 7/01/31 - BHAC Insured (IF)
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ NEVADA (continued) $ 1,500 Las Vegas Redevelopment Agency, Nevada, Tax Increment 6/19 at 100.00 A $ 1,684,095 Revenue Bonds, Series 2009A, 8.000%, 6/15/30 ------------------------------------------------------------------------------------------------------------------------------ 20,250 Total Nevada 8,454,560 ------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 7.1% (4.6% OF TOTAL INVESTMENTS) 6,850 New Jersey Educational Facilities Authority Revenue No Opt. Call Baa2 7,198,117 Refunding Bonds, University of Medicine and Dentistry of New Jersey Issue, Series 2009 B, 5.750%, 12/01/15 1,830 New Jersey Higher Education Assistance Authority, 6/10 at 101.00 Aaa 1,878,166 Student Loan Revenue Bonds, Series 2000A, 6.000%, 6/01/13 - NPFG Insured (Alternative Minimum Tax) 4,130 New Jersey Transit Corporation, Certificates of No Opt. Call A1 4,584,094 Participation, Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/13 - AMBAC Insured 4,000 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 4,613,680 Transportation System Bonds, Series 1999A, 5.750%, 6/15/18 20,000 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 6,529,000 Transportation System Bonds, Series 2006C, 0.000%, 12/15/28 - AMBAC Insured Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002: 7,825 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 8,506,714 3,165 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,572,652 1,365 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 AAA 1,608,762 Tobacco Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39 (Pre-refunded 6/01/13) ------------------------------------------------------------------------------------------------------------------------------ 49,165 Total New Jersey 38,491,185 ------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.7% (0.4% OF TOTAL INVESTMENTS) 3,730 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 3,745,144 Revenue Bonds, Series 2004, 5.000%, 7/01/32 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 8.4% (5.5% OF TOTAL INVESTMENTS) 2,170 Dormitory Authority of the State of New York, Insured 1/10 at 100.00 A3 2,171,758 Revenue 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 2/10 at 100.00 A1 7,519,800 Hospital Revenue Refunding Bonds, Wyckoff Heights Medical Center, Series 1998H, 5.300%, 8/15/21 - NPFG Insured 6,000 New York City Industrial Development Agency, New York, 8/16 at 101.00 B- 5,827,380 American Airlines-JFK International Airport Special Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax) 4,755 New York City Industrial Development Agency, New York, 3/19 at 100.00 AAA 5,665,107 Revenue Bonds, Yankee Stadium Project Pilot, Series 2009A, 7.000%, 3/01/49 - AGC Insured 5,000 New York City Municipal Water Finance Authority, New 12/14 at 100.00 AAA 5,090,150 York, Water and Sewerage System Revenue Bonds, Series 2004B, 5.000%, 6/15/36 - FSA Insured (UB) 8,800 New York City Sales Tax Asset Receivable Corporation, 10/14 at 100.00 AAA 9,078,256 New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A, 5.000%, 10/15/32 - AMBAC Insured (UB) 10,000 Port Authority of New York and New Jersey, Special 12/09 at 100.00 A 10,483,000 Project Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.900%, 12/01/17 - NPFG Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 44,225 Total New York 45,835,451 ------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.1% (0.7% OF TOTAL INVESTMENTS) 3,830 Charlotte-Mecklenburg Hospital Authority, North 1/15 at 100.00 AAA 4,366,813 Carolina, Healthcare System Revenue Bonds, DBA Carolinas Healthcare System, Series 2005A, 5.000%, 1/15/45 (Pre-refunded 1/15/15) 1,500 The Charlotte-Mecklenberg Hospital Authority (North 1/18 at 100.00 AA- 1,553,475 Carolina), Doing Business as Carolinas HealthCare System, Health Care Refunding Revenue Bonds, Series 2008A, 5.250%, 1/15/24 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------ 5,330 Total North Carolina 5,920,288 ------------------------------------------------------------------------------------------------------------------------------ OHIO - 5.1% (3.3% OF TOTAL INVESTMENTS) 2,300 Amherst Exempted Village School District, Ohio, 12/11 at 100.00 A1 (4) 2,505,919 Unlimited Tax General Obligation School Improvement Bonds, Series 2001, 5.125%, 12/01/21 (Pre-refunded 12/01/11) - FGIC Insured
Nuveen Investments 57 NAD | Nuveen Dividend Advantage Municipal Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ OHIO (continued) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 160 5.125%, 6/01/24 6/17 at 100.00 BBB $ 142,506 1,800 5.875%, 6/01/30 6/17 at 100.00 BBB 1,566,666 1,740 5.750%, 6/01/34 6/17 at 100.00 BBB 1,463,253 3,930 5.875%, 6/01/47 6/17 at 100.00 BBB 2,911,816 3,635 Franklin County, Ohio, FHA-Insured Multifamily Housing 1/10 at 100.00 Aa2 3,636,309 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 3,645,365 Initiatives, Series 2004A, 5.000%, 5/01/30 11,400 Ohio Water Development Authority, Solid Waste Disposal 3/10 at 102.00 N/R 10,944,228 Revenue Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) 935 Warren County, Ohio, Limited Tax General Obligations, 12/09 at 100.00 Aa2 938,609 Series 1997, 5.500%, 12/01/17 ------------------------------------------------------------------------------------------------------------------------------ 29,550 Total Ohio 27,754,671 ------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.4% (0.3% OF TOTAL INVESTMENTS) 2,355 Portland, Oregon, Downtown Waterfront Urban Renewal and 6/10 at 101.00 Aa3 2,422,800 Redevelopment Revenue Bonds, Series 2000A, 5.500%, 6/15/20 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 7.0% (4.6% OF TOTAL INVESTMENTS) 3,480 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA 3,867,359 Pennsylvania, Revenue Bonds, West Penn Allegheny Health System, Series 2000B, 9.250%, 11/15/22 (Pre-refunded 11/15/10) 520 Carbon County Industrial Development Authority, No Opt. Call BBB- 525,346 Pennsylvania, Resource Recovery Revenue Refunding Bonds, Panther Creek Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) 1,250 Erie, Pennsylvania, Water Authority, Water Revenue 12/18 at 100.00 AAA 1,259,025 Bonds, Series 2008, 5.000%, 12/01/43 - FSA Insured 1,500 Pennsylvania Housing Finance Agency, Single Family 10/16 at 100.00 AA+ 1,397,235 Mortgage Revenue Bonds, Series 2006A, 4.650%, 10/01/31 (Alternative Minimum Tax) (UB) 8,200 Pennsylvania Turnpike Commission, Turnpike Revenue 12/27 at 100.00 A2 5,108,518 Bonds, Capital Appreciation Series 2009E, 0.000%, 12/01/38 5,000 Pennsylvania Turnpike Commission, Turnpike Subordinate 6/26 at 100.00 AAA 3,641,400 Revenue Bonds, Series 2009C, 0.000%, 6/01/33 - FSA Insured 18,900 Philadelphia Airport System, Pennsylvania, Revenue 12/09 at 101.00 A+ 18,981,837 Bonds, Series 1998A, 5.500%, 6/15/18 - FGIC Insured (Alternative Minimum Tax) 3,205 Philadelphia School District, Pennsylvania, General 8/12 at 100.00 Aa3 (4) 3,607,548 Obligation Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded 8/01/12) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------ 42,055 Total Pennsylvania 38,388,268 ------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 5.1% (3.3% OF TOTAL INVESTMENTS) 2,500 Puerto Rico Aqueduct and Sewerage Authority, Revenue 7/18 at 100.00 BBB- 2,555,650 Bonds, Senior Lien Series 2008A, 6.000%, 7/01/44 Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds, Series 2003: 4,300 4.500%, 12/01/23 (UB) 12/13 at 100.00 AA+ 4,265,299 8,200 4.500%, 12/01/23 (UB) 12/13 at 100.00 AAA 9,038,040 12,845 Puerto Rico Infrastructure Financing Authority, Special No Opt. Call BBB+ 1,220,789 Tax Revenue Bonds, Series 2005A, 0.000%, 7/01/42 - FGIC Insured 10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/19 at 100.00 A+ 10,503,500 Revenue Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42 ------------------------------------------------------------------------------------------------------------------------------ 37,845 Total Puerto Rico 27,583,278 ------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 3.7% (2.4% OF TOTAL INVESTMENTS) 2,015 Central Falls, Rhode Island, General Obligation School 11/09 at 102.00 BBB 2,054,293 Bonds, Series 1999, 6.250%, 5/15/20 - RAAI Insured
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND (continued) $ 3,500 Providence Redevelopment Agency, Rhode Island, Revenue 4/10 at 101.00 Baa2 (4) $ 3,609,760 Bonds, Public Safety and Municipal Building Projects, Series 1999A, 5.750%, 4/01/29 (Pre-refunded 4/01/10) - AMBAC Insured Rhode Island Housing & Mortgage Finance Corporation, Homeownership Opportunity 57-B Bond Program, Series 2008, Trust 1177: 1,500 9.524%, 10/01/27 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 1,534,770 1,000 9.624%, 10/01/32 (Alternative Minimum Tax) (IF) 4/17 at 100.00 AA+ 1,012,090 12,500 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 11,825,250 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32 ------------------------------------------------------------------------------------------------------------------------------ 20,515 Total Rhode Island 20,036,163 ------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,500 Greenville, South Carolina, Hospital Facilities Revenue 5/11 at 101.00 AA- 1,498,035 Bonds, Series 2001, 5.000%, 5/01/31 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 2.1% (1.4% OF TOTAL INVESTMENTS) 6,400 Memphis-Shelby County Airport Authority, Tennessee, 3/10 at 101.00 A2 6,456,512 Airport Revenue Bonds, Series 1999D, 6.000%, 3/01/24 - AMBAC Insured (Alternative Minimum Tax) 2,425 Memphis-Shelby County Airport Authority, Tennessee, 3/11 at 100.00 AAA 2,454,027 Airport Revenue Bonds, Series 2001B, 5.125%, 3/01/26 - FSA Insured 2,310 Sullivan County Health Educational and Housing 9/16 at 100.00 BBB+ 1,932,615 Facilities Board, Tennessee, Revenue Bonds, Wellmont Health System, Series 2006C, 5.250%, 9/01/36 1,500 Sumner County Health, Educational, and Housing 11/17 at 100.00 N/R 570,150 Facilities Board, Tennessee, Revenue Refunding Bonds, Sumner Regional Health System Inc., Series 2007, 5.500%, 11/01/46 ------------------------------------------------------------------------------------------------------------------------------ 12,635 Total Tennessee 11,413,304 ------------------------------------------------------------------------------------------------------------------------------ TEXAS - 6.4% (4.2% OF TOTAL INVESTMENTS) 2,560 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Caa3 1,494,554 Refunding Bonds, TXU Electric Company, Series 1999C, 7.700%, 3/01/32 (Alternative Minimum Tax) 2,820 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 A 2,404,924 Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured 820 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax 12/11 at 100.00 AAA 891,660 Revenue Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded 12/01/11) - AMBAC Insured 2,205 Harris County-Houston Sports Authority, Texas, Senior No Opt. Call A 1,191,869 Lien Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/20 - NPFG Insured 3,130 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call A- 849,169 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 2,602,025 Series 2000, 6.000%, 8/01/25 (Pre-refunded 8/01/10) - FSA Insured 30,095 Leander Independent School District, Williamson and 8/12 at 27.94 AAA 7,275,165 Travis Counties, Texas, General Obligation Bonds, Series 2004, 0.000%, 8/15/34 9,345 Leander Independent School District, Williamson and 8/15 at 37.33 AA- 2,555,203 Travis Counties, Texas, General Obligation Bonds, Series 2005, 0.000%, 8/15/33 - FGIC Insured 33,160 Leander Independent School District, Williamson and 8/14 at 26.50 AAA 6,788,847 Travis Counties, Texas, General Obligation Bonds, Series 2006, 0.000%, 8/15/38 1,000 San Antonio, Texas, Water System Revenue Bonds, Series 5/15 at 100.00 AA 993,900 2005, 4.750%, 5/15/37 - NPFG Insured 3,295 Tarrant County, Texas, Cultural & Educational Facilities 2/17 at 100.00 AA- 2,827,440 Financing Corporation, Revenue Bonds, Series 2007, Residuals 1761, 16.864%, 2/15/36 (IF) 7,000 White Settlement Independent School District, Tarrant 8/15 at 34.92 AAA 1,766,240 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 1,852,380 3,000 0.000%, 8/15/22 8/15 at 70.77 AAA 1,648,710 ------------------------------------------------------------------------------------------------------------------------------ 103,930 Total Texas 35,142,086 ------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 59 NAD | Nuveen Dividend Advantage Municipal Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.1% (0.1% OF TOTAL INVESTMENTS) Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 1999C-2, Class II: $ 195 5.700%, 7/01/19 (Alternative Minimum Tax) 1/10 at 101.50 Aaa $ 199,785 60 5.750%, 7/01/21 (Alternative Minimum Tax) 1/10 at 101.50 AA 60,040 20 Utah Housing Finance Agency, Single Family Mortgage 1/10 at 101.00 AA 20,095 Bonds, Series 1999D, 5.850%, 7/01/21 (Alternative Minimum Tax) 10 Utah Housing Finance Agency, Single Family Mortgage 1/10 at 101.50 Aa3 10,160 Bonds, Series 1999F, 6.300%, 7/01/21 (Alternative Minimum Tax) 485 Utah Housing Finance Agency, Single Family Mortgage 7/10 at 100.00 AA- 488,177 Bonds, Series 2000F-2, Class III, 6.000%, 1/01/15 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 770 Total Utah 778,257 ------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.5% (0.3% OF TOTAL INVESTMENTS) 3,000 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 2,553,060 Residential Care Facilities Mortgage Revenue Bonds, Goodwin House, Inc., Series 2007A, 5.125%, 10/01/42 ------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 11.0% (7.2% OF TOTAL INVESTMENTS) 4,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 4,457,520 Bonds, Nuclear Project 3, Series 2003A, 5.500%, 7/01/17 - SYNCORA GTY Insured Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18, Series 1999B: 1,755 6.000%, 9/01/15 - NPFG Insured (Alternative Minimum 3/10 at 101.00 A 1,782,852 Tax) 2,590 6.000%, 9/01/16 - NPFG Insured (Alternative Minimum 3/10 at 101.00 A 2,628,617 Tax) Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18, Series 1999C: 875 6.000%, 9/01/15 - NPFG Insured (Alternative Minimum 3/10 at 101.00 A 888,886 Tax) 1,260 6.000%, 9/01/16 - NPFG Insured (Alternative Minimum 3/10 at 101.00 A 1,278,787 Tax) 4,820 Seattle, Washington, Municipal Light and Power Revenue 3/11 at 100.00 AAA 5,020,030 Refunding and Improvement Bonds, Series 2001, 5.500%, 3/01/19 - FSA Insured 6,195 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 6,271,756 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 11,605 Washington, Certificates of Participation, Washington 1/10 at 100.00 AA 11,641,904 Convention and Trade Center, Series 1999, 5.250%, 7/01/16 - NPFG Insured 3,350 Washington, General Obligation Compound Interest Bonds, No Opt. Call AAA 2,486,940 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 AA+ 11,751,547 18,470 0.000%, 1/01/21 No Opt. Call AA+ 11,622,986 ------------------------------------------------------------------------------------------------------------------------------ 72,570 Total Washington 59,831,825 ------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 7.0% (4.6% OF TOTAL INVESTMENTS) 1,390 Badger Tobacco Asset Securitization Corporation, 6/12 at 100.00 AAA 1,546,111 Wisconsin, Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.000%, 6/01/17 (Pre-refunded 6/01/12) 1,690 Green Bay, Wisconsin, Water System Revenue Bonds, Series 11/14 at 100.00 Aa3 (4) 1,943,348 2004, 5.000%, 11/01/29 (Pre-refunded 11/01/14) - FSA Insured 560 Green Bay, Wisconsin, Water System Revenue Bonds, Series 11/14 at 100.00 Aa3 577,220 2004, 5.000%, 11/01/29 - FSA Insured 3,810 La Crosse, Wisconsin, Industrial Development Revenue 12/09 at 101.00 A3 3,898,316 Refunding Bonds, Dairyland Power Cooperative, Series 1997C, 5.550%, 2/01/15 - AMBAC Insured 7,410 Wisconsin Health and Educational Facilities Authority, 11/16 at 100.00 Aa1 7,436,009 Revenue Bonds, Ascension Health, Series 2006A, 5.000%, 11/15/36 4,330 Wisconsin Health and Educational Facilities Authority, 2/20 at 100.00 AA- 4,470,509 Revenue Bonds, Childrens Hospital of Wisconsin Inc., Series 2008B, 5.500%, 8/15/29 4,380 Wisconsin Health and Educational Facilities Authority, 11/09 at 101.00 A 4,386,439 Revenue Bonds, Kenosha Hospital and Medical Center Inc., Series 1999, 5.625%, 5/15/29
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ WISCONSIN (continued) $ 12,700 Wisconsin Health and Educational Facilities Authority, 2/10 at 101.00 A2 $ 12,733,147 Revenue Bonds, Mercy Health System Corporation, Series 1999, 5.500%, 8/15/25 - AMBAC Insured 2,200 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 BBB+ 1,850,002 Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33 ------------------------------------------------------------------------------------------------------------------------------ 38,470 Total Wisconsin 38,841,101 ------------------------------------------------------------------------------------------------------------------------------ $ 1,115,385 Total Municipal Bonds (cost $843,165,116) 835,953,168 ===============--------------------------------------------------------------------------------------------------------------- SHARES DESCRIPTION (1) VALUE ------------------------------------------------------------------------------------------------------------------------------ INVESTMENT COMPANIES - 0.1% (0.1% OF TOTAL INVESTMENTS) 8,765 BlackRock MuniHoldings Fund Inc. $ 128,495 32,332 Morgan Stanley Quality Municipal Income Trust 381,518 ------------------------------------------------------------------------------------------------------------------------------ Total Investment Companies (cost $527,634) 510,013 ----------------------------------------------------------------------------------------------------------- Total Investments (cost $843,692,750) - 153.3% 836,463,181 ----------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (9.5)% (51,605,000) ----------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 4.2% 22,475,969 ----------------------------------------------------------------------------------------------------------- Auction Rate Preferred Shares, at Liquidation Value - (48.0)% (5) (261,800,000) ----------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 545,534,150 ===========================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.3% N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. Nuveen Investments 61 NXZ | Nuveen Dividend Advantage Municipal Fund 2 | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 4.7% (3.2% OF TOTAL INVESTMENTS) $ 18,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/11 at 101.00 A2 (4) $ 20,143,910 Series 2001A, 5.750%, 6/01/31 (Pre-refunded 6/01/11) ------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.3% (0.2% OF TOTAL INVESTMENTS) 2,200 Northern Tobacco Securitization Corporation, Alaska, 6/14 at 100.00 Baa3 1,461,900 Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46 ------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.7% (0.5% OF TOTAL INVESTMENTS) 3,120 Phoenix, Arizona, Civic Improvement Corporation, Senior 7/12 at 100.00 AA- 3,107,458 Lien Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.2% (0.2% OF TOTAL INVESTMENTS) 1,015 Arkansas Development Finance Authority, Single Family 1/12 at 100.00 AAA 1,019,659 Mortgage Revenue Bonds, GNMA Mortgage-Backed Securities Program, Series 2002C, 5.400%, 1/01/34 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 12.2% (8.2% OF TOTAL INVESTMENTS) 9,000 California County Tobacco Securitization Agency, Tobacco 12/18 at 100.00 Baa3 6,122,250 Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A, 0.000%, 6/01/36 6,000 California Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 6,227,640 Bonds, Stanford University, Series 2001Q, 5.250%, 12/01/32 4,080 California Health Facilities Financing Authority, 4/16 at 100.00 AAA 4,131,204 Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 4/01/37 - BHAC Insured Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: 1,000 5.000%, 6/01/33 6/17 at 100.00 BBB 763,080 1,000 5.125%, 6/01/47 6/17 at 100.00 BBB 664,390 5,000 Golden State Tobacco Securitization Corporation, 6/13 at 100.00 AAA 5,850,950 California, Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13) 20,000 Golden State Tobacco Securitization Corporation, 6/15 at 100.00 A- 17,228,200 California, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 - FGIC Insured 6,000 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- 5,744,280 California, Sublease Revenue Bonds, Los Angeles International Airport, American Airlines Inc. Terminal 4 Project, Series 2002C, 7.500%, 12/01/24 (Alternative Minimum Tax) 5,000 San Jose, California, Airport Revenue Bonds, Series 3/17 at 100.00 A 5,120,950 2007A, 6.000%, 3/01/47 - AMBAC Insured (Alternative Minimum Tax) 80 Yuba County Water Agency, California, Yuba River 3/10 at 100.00 Baa3 77,855 Development Revenue Bonds, Pacific Gas and Electric Company, Series 1966A, 4.000%, 3/01/16 ------------------------------------------------------------------------------------------------------------------------------ 57,160 Total California 51,930,799 ------------------------------------------------------------------------------------------------------------------------------ COLORADO - 10.1% (6.7% OF TOTAL INVESTMENTS) 2,380 Colorado Educational and Cultural Facilities Authority, 8/11 at 100.00 AAA 2,645,322 Charter School Revenue Bonds, Peak-to-Peak Charter School, Series 2001, 7.500%, 8/15/21 (Pre-refunded 8/15/11) 3,300 Denver City and County, Colorado, Airport Revenue Bonds, 11/16 at 100.00 A+ 3,382,566 Series 2006, 5.000%, 11/15/24 - FGIC Insured 2,000 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 A+ 2,022,620 Refunding Bonds, Series 2000A, 6.000%, 11/15/18 - AMBAC Insured (Alternative Minimum Tax) Denver, Colorado, Airport Revenue Bonds, Series 2006: 5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 A+ 5,531,798 4,335 5.000%, 11/15/25 - FGIC Insured (UB) 11/16 at 100.00 A+ 4,422,524 10,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 Aaa 3,122,500 Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded 9/01/10) - NPFG Insured 1,280 Eagle County Air Terminal Corporation, Colorado, Airport 5/11 at 101.00 N/R 1,109,760 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 810,213 Obligation Bonds, Series 2004, 5.000%, 12/15/22 - FSA Insured (UB)
62 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ COLORADO (continued) $ 5,000 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA $ 5,449,600 Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41 (Pre-refunded 6/15/11) - FSA Insured Northwest Parkway Public Highway Authority, Colorado, Senior Lien Revenue Bonds, Series 2001B: 22,000 0.000%, 6/15/28 (Pre-refunded 6/15/11) - FSA Insured 6/11 at 35.65 AAA 7,659,520 17,650 0.000%, 6/15/29 (Pre-refunded 6/15/11) - AMBAC Insured 6/11 at 33.46 N/R (4) 5,766,255 1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax 6/14 at 101.00 N/R 981,320 Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25 ------------------------------------------------------------------------------------------------------------------------------ 75,065 Total Colorado 42,903,998 ------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.3% (0.9% OF TOTAL INVESTMENTS) 895 District of Columbia Tobacco Settlement Corporation, 5/11 at 101.00 BBB 897,255 Tobacco Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24 5,000 Washington Convention Center Authority, District of 10/16 at 100.00 A 4,627,600 Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series 2007A, 4.500%, 10/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ 5,895 Total District of Columbia 5,524,855 ------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 4.3% (2.9% OF TOTAL INVESTMENTS) 15,000 Jacksonville, Florida, Transportation Revenue Bonds, 10/11 at 100.00 AA- 15,324,750 Series 2001, 5.250%, 10/01/29 - NPFG Insured 3,000 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 A 2,974,470 Miami International Airport, Series 2002, 5.375%, 10/01/32 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 18,000 Total Florida 18,299,220 ------------------------------------------------------------------------------------------------------------------------------ HAWAII - 2.5% (1.6% OF TOTAL INVESTMENTS) Honolulu Board of Water Supply, Hawaii, Water System Revenue Bonds, Series 2001: 3,000 5.250%, 7/01/26 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 3,227,430 6,725 5.250%, 7/01/31 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 7,234,822 ------------------------------------------------------------------------------------------------------------------------------ 9,725 Total Hawaii 10,462,252 ------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 13.5% (9.0% OF TOTAL INVESTMENTS) 3,560 Chicago, Illinois, FHA/GNMA Collateralized Multifamily 12/11 at 100.00 AAA 3,600,335 Housing Revenue Bonds, Stone Terrace Apartments, Series 2001A, 5.750%, 12/20/42 (Alternative Minimum Tax) 730 Chicago, Illinois, FNMA/GNMA Collateralized Single 4/11 at 105.00 AAA 760,083 Family Mortgage Revenue Bonds, Series 2001A, 6.250%, 10/01/32 (Alternative Minimum Tax) 5,000 Chicago, Illinois, General Obligation Bonds, City No Opt. Call AA- 1,300,550 Colleges, Series 1999, 0.000%, 1/01/34 - FGIC Insured 3,985 Chicago, Illinois, General Obligation Bonds, Series 1/11 at 101.00 AA- 4,026,165 2001A, 5.250%, 1/01/33 - NPFG Insured 5,285 Chicago, Illinois, General Obligation Bonds, Series 1/11 at 101.00 AA- (4) 5,624,350 2001A, 5.250%, 1/01/33 (Pre-refunded 1/01/11) - NPFG Insured 3,180 Illinois Development Finance Authority, Revenue Bonds, 12/12 at 100.00 N/R (4) 3,636,712 Chicago Charter School Foundation, Series 2002A, 6.250%, 12/01/32 (Pre-refunded 12/01/12) 910 Illinois Development Finance Authority, Revenue Bonds, 9/11 at 100.00 BBB+ 906,406 Illinois Wesleyan University, Series 2001, 5.500%, 9/01/32 - AMBAC Insured 4,090 Illinois Development Finance Authority, Revenue Bonds, 9/11 at 100.00 BBB+ (4) 4,415,687 Illinois Wesleyan University, Series 2001, 5.500%, 9/01/32 (Pre-refunded 9/01/11) - AMBAC Insured 3,100 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 AAA 3,365,856 Midwestern University, Series 2001B, 6.000%, 5/15/31 (Pre-refunded 5/15/11) 9,450 Illinois Finance Authority, Revenue Bonds, Palos 5/17 at 100.00 A 8,279,618 Community Hospital, Series 2007A, 5.000%, 5/15/32 - NPFG Insured 2,500 Illinois Finance Authority, Revenue Bonds, Silver Cross 8/19 at 100.00 BBB 2,627,775 Hospital and Medical Centers, Series 2009, 6.875%, 8/15/38 5,000 Illinois Health Facilities Authority, Revenue Bonds, 2/11 at 101.00 AAA 5,337,150 Edward Hospital Obligated Group, Series 2001B, 5.250%, 2/15/34 (Pre-refunded 2/15/11) - FSA Insured 2,500 Illinois Housing Development Authority, Homeowner 2/16 at 100.00 AA 2,496,900 Mortgage Revenue Bonds, Series 2006C2, 5.050%, 8/01/27 (Alternative Minimum Tax) 2,275 Illinois, Sales Tax Revenue Bonds, Series 2001, 5.500%, 6/11 at 100.00 AAA 2,429,973 6/15/16
Nuveen Investments 63 NXZ | Nuveen Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 2,500 Kane & DeKalb Counties, Illinois, Community United No Opt. Call A3 $ 1,195,250 School District 301, General Obligation Bonds, Series 2006, 0.000%, 12/01/23 - NPFG Insured 4,980 Metropolitan Pier and Exposition Authority, Illinois, 12/09 at 100.00 A2 4,982,141 Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1996A, 5.250%, 6/15/27 - AMBAC Insured 958 Montgomery, Illinois, Lakewood Creek Project Special 3/16 at 100.00 BBB- 803,819 Assessment Bonds, Series 2007, 4.700%, 3/01/30 - RAAI Insured 3,360 Northfield Township High School District 225, Cook 12/16 at 69.01 AAA 1,621,334 County, Illinois, Glenbrook, General Obligation School Bonds, Series 2007B, 0.000%, 12/01/24 ------------------------------------------------------------------------------------------------------------------------------ 63,363 Total Illinois 57,410,104 ------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.2% (2.2% OF TOTAL INVESTMENTS) 2,000 Indiana Health Facility Financing Authority, Hospital 9/11 at 100.00 BBB 1,562,340 Revenue Bonds, Methodist Hospitals Inc., Series 2001, 5.500%, 9/15/31 2,210 Indiana Health Facility Financing Authority, Hospital No Opt. Call AAA 2,524,284 Revenue Refunding Bonds, Columbus Regional Hospital, Series 1993, 7.000%, 8/15/15 - FSA Insured 4,000 Indiana Transportation Finance Authority, Highway 6/13 at 100.00 AAA 4,145,520 Revenue Bonds, Series 2003A, 5.000%, 6/01/23 - FSA Insured 6,100 St. Joseph County Hospital Authority, Indiana, Revenue 2/10 at 101.00 BB+ 5,470,114 Bonds, Madison Center Inc., Series 1999, 5.800%, 2/15/24 ------------------------------------------------------------------------------------------------------------------------------ 14,310 Total Indiana 13,702,258 ------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.6% (0.9% OF TOTAL INVESTMENTS) 1,000 Iowa Higher Education Loan Authority, Private College 10/12 at 100.00 N/R (4) 1,124,680 Facility Revenue Bonds, Wartburg College, Series 2002, 5.500%, 10/01/28 (Pre-refunded 10/01/12) - ACA Insured 6,340 Iowa Tobacco Settlement Authority, Tobacco Asset-Backed 6/17 at 100.00 BBB 5,463,812 Revenue Bonds, Series 2005B, 5.600%, 6/01/34 ------------------------------------------------------------------------------------------------------------------------------ 7,340 Total Iowa 6,588,492 ------------------------------------------------------------------------------------------------------------------------------ KANSAS - 4.0% (2.7% OF TOTAL INVESTMENTS) 17,000 Wichita, Kansas, Hospital Facilities Revenue Refunding 11/11 at 101.00 A+ 17,152,320 and Improvement Bonds, Via Christi Health System Inc., Series 2001-III, 5.625%, 11/15/31 ------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.2% (0.1% OF TOTAL INVESTMENTS) 1,000 Kentucky Economic Development Finance Authority, 6/18 at 100.00 AAA 1,062,610 Louisville Arena Project Revenue Bonds, Louisville Arena Authority, Inc., Series 2008A-1, 6.000%, 12/01/38 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 4.9% (3.3% OF TOTAL INVESTMENTS) 3,960 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, 5/16 at 100.00 AA 3,713,094 Series 2006A, 4.500%, 5/01/41 - FGIC Insured (UB) 18,825 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 BBB 17,037,566 Tobacco Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 ------------------------------------------------------------------------------------------------------------------------------ 22,785 Total Louisiana 20,750,660 ------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.5% (2.4% OF TOTAL INVESTMENTS) 15,880 Massachusetts Turnpike Authority, Metropolitan Highway 1/10 at 100.00 A 14,979,128 System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 11.7% (7.8% OF TOTAL INVESTMENTS) Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2001A: 20,000 5.500%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 101.00 A (4) 21,744,000 15,390 5.250%, 7/01/33 (Pre-refunded 7/01/11) - FGIC Insured 7/11 at 100.00 A+ (4) 16,391,735 4,000 Michigan Municipal Bond Authority, Public School Academy 4/10 at 102.00 Ba1 3,764,560 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 2/10 at 100.00 BB- 1,775,940 Revenue Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.125%, 8/15/18
64 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ MICHIGAN (continued) Michigan State Hospital Finance Authority, Revenue Refunding Bonds, Detroit Medical Center Obligated Group, Series 1993A: $ 2,000 6.250%, 8/15/13 2/10 at 100.00 BB- $ 1,999,920 4,000 6.500%, 8/15/18 2/10 at 100.00 BB- 3,910,720 ------------------------------------------------------------------------------------------------------------------------------ 47,390 Total Michigan 49,586,875 ------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 4.8% (3.2% OF TOTAL INVESTMENTS) 5,000 City of Minneapolis, Minnesota, Health Care System 11/18 at 100.00 AAA 5,644,850 Revenue Bonds, Fairview Health Services, Series 2008B, 6.500%, 11/15/38 - AGC Insured 14,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 14,770,140 Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/32 (Pre-refunded 1/01/11) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------ 19,000 Total Minnesota 20,414,990 ------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.6% (0.4% OF TOTAL INVESTMENTS) 2,345 Montana Board of Housing, Single Family Program Bonds, 12/10 at 100.00 AA+ 2,357,100 Series 2001A-2, 5.700%, 6/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ NEVADA - 1.6% (1.1% OF TOTAL INVESTMENTS) 12,275 Director of Nevada State Department of Business and 1/10 at 100.00 Caa2 2,516,498 Industry, 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 1/10 at 102.00 N/R 31,500 Industry, Revenue Bonds, Las Vegas Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40 (6) 2,000 Henderson, Nevada, Healthcare Facility Revenue Refunding 7/17 at 100.00 AAA 2,311,400 Bonds, Catholic Healthcare West, Series 2007B, Trust 2633, 18.647%, 7/01/31 - BHAC Insured (IF) 1,750 Reno, Nevada, Health Facilities Revenue Bonds, Catholic 7/17 at 100.00 AAA 1,882,195 Healthcare West, Trust 2634, 18.374%, 7/01/31 - BHAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------ 19,525 Total Nevada 6,741,593 ------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 2.2% (1.5% OF TOTAL INVESTMENTS) 8,000 New Hampshire Business Finance Authority, Pollution 4/10 at 101.50 Baa1 8,123,120 Control Remarketed Revenue Refunding Bonds, Connecticut Light and Power Company, Series 1992A, 5.850%, 12/01/22 1,160 New Hampshire Housing Finance Authority, Single Family 5/11 at 100.00 Aa2 1,168,967 Mortgage Acquisition Bonds, Series 2001A, 5.700%, 1/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 9,160 Total New Hampshire 9,292,087 ------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.5% (1.7% OF TOTAL INVESTMENTS) 3,995 New Jersey Economic Development Authority, Special 11/10 at 101.00 B 3,733,168 Facilities Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax) 350 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 AAA 380,492 Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 (Pre-refunded 6/01/12) Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 2,200 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,494,096 425 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 500,897 3,085 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 3,596,462 ------------------------------------------------------------------------------------------------------------------------------ 10,055 Total New Jersey 10,705,115 ------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 5.9% (3.9% 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) 13,085,760 10,800 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 11,777,184 ------------------------------------------------------------------------------------------------------------------------------ 22,800 Total New Mexico 24,862,944 ------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 9.6% (6.4% OF TOTAL INVESTMENTS) 1,300 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 A2 1,332,188 Bonds, Mount Sinai NYU Health Obligated Group, Series 2000A, 6.625%, 7/01/19 3,600 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 A2 (4) 3,767,328 Bonds, Mount Sinai NYU Health Obligated Group, Series 2000A, 6.625%, 7/01/19 (Pre-refunded 7/01/10)
Nuveen Investments 65 NXZ | Nuveen Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 6,000 Long Island Power Authority, New York, Electric System 5/11 at 100.00 AAA $ 6,433,440 General Revenue Bonds, Series 2001L, 5.375%, 5/01/33 (Pre-refunded 5/01/11) 12,800 Metropolitan Transportation Authority, New York, 11/16 at 100.00 AAA 12,080,384 Transportation Revenue Bonds, Series 2006B, 4.500%, 11/15/32 - FSA Insured (UB) 5,000 New York City Industrial Development Agency, New York, 8/12 at 101.00 B- 5,090,300 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 6/11 at 101.00 AAA 12,174,240 York, Water and Sewerage System Revenue Bonds, Series 2001C, 5.125%, 6/15/33 (UB) ------------------------------------------------------------------------------------------------------------------------------ 40,700 Total New York 40,877,880 ------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.7% (1.1% OF TOTAL INVESTMENTS) 2,950 North Carolina Capital Facilities Financing Agency, 4/13 at 100.00 N/R 2,541,543 Revenue Bonds, Johnson and Wales University, Series 2003A, 5.000%, 4/01/33 - SYNCORA GTY Insured 4,500 North Carolina Eastern Municipal Power Agency, Power 1/10 at 101.00 A- 4,585,140 System Revenue Refunding Bonds, Series 1999B, 5.600%, 1/01/15 ------------------------------------------------------------------------------------------------------------------------------ 7,450 Total North Carolina 7,126,683 ------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 0.4% (0.3% OF TOTAL INVESTMENTS) 1,635 North Dakota Housing Finance Agency, Home Mortgage 7/10 at 100.00 Aa1 1,668,599 Finance Program Refunding Bonds, Series 2001A, 5.550%, 1/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ OHIO - 2.2% (1.4% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: 10,000 5.750%, 6/01/34 6/17 at 100.00 BBB 8,409,500 1,000 5.875%, 6/01/47 6/17 at 100.00 BBB 740,920 ------------------------------------------------------------------------------------------------------------------------------ 11,000 Total Ohio 9,150,420 ------------------------------------------------------------------------------------------------------------------------------ OREGON - 3.1% (2.1% OF TOTAL INVESTMENTS) 8,000 Clackamas County Hospital Facility Authority, Oregon, 5/11 at 101.00 A+ 8,198,640 Revenue Refunding Bonds, Legacy Health System, Series 2001, 5.250%, 5/01/21 5,000 Oregon Department of Administrative Services, 5/11 at 101.00 AA- 5,104,800 Certificates of Participation, Series 2001D, 5.000%, 5/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ 13,000 Total Oregon 13,303,440 ------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 3.4% (2.3% OF TOTAL INVESTMENTS) 5,000 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA 5,556,550 Pennsylvania, Revenue Bonds, West Penn Allegheny Health System, Series 2000B, 9.250%, 11/15/30 (Pre-refunded 11/15/10) 585 Carbon County Industrial Development Authority, No Opt. Call BBB- 591,014 Pennsylvania, 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, 1/11 at 101.00 Aa3 8,259,680 Revenue Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31 ------------------------------------------------------------------------------------------------------------------------------ 13,585 Total Pennsylvania 14,407,244 ------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.6% (0.3% OF TOTAL INVESTMENTS) 2,500 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/19 at 100.00 A+ 2,625,875 Revenue Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42 ------------------------------------------------------------------------------------------------------------------------------ TEXAS - 26.5% (17.7% OF TOTAL INVESTMENTS) 7,500 Austin, Texas, Electric Utility System Revenue Refunding 11/10 at 100.00 AAA 7,527,750 Bonds, Series 2001, 5.000%, 11/15/30 - FSA Insured 10,000 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 A 8,528,100 Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured
66 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) Dallas-Fort Worth International Airport Public Facility Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001: $ 15,000 5.250%, 1/15/26 - FSA Insured 1/10 at 100.00 AAA $ 15,007,200 1,750 5.200%, 1/15/31 - FSA Insured 1/10 at 100.00 AAA 1,750,350 6,000 Decatur Hospital Authority, Texas, Revenue Bonds, Wise 9/14 at 100.00 N/R 5,841,420 Regional Health System, Series 2004A, 7.125%, 9/01/34 10,000 Gulf Coast Industrial Development Authority, Texas, 4/12 at 100.00 Ba1 10,099,900 Solid Waste Disposal Revenue Bonds, Citgo Petroleum Corporation Project, Series 1998, 8.000%, 4/01/28 (Alternative Minimum Tax) 1,500 Harris County-Houston Sports Authority, Texas, Junior 11/31 at 69.08 A 183,720 Lien Revenue Bonds, Series 2001H, 0.000%, 11/15/37 - NPFG Insured 30,980 Harris County-Houston Sports Authority, Texas, Junior 11/11 at 100.00 A 28,151,837 Lien Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - NPFG Insured 40,000 Harris County-Houston Sports Authority, Texas, Senior 11/30 at 54.04 A 4,167,200 Lien Revenue Refunding Bonds, Series 2001A, 0.000%, 11/15/40 - NPFG Insured 3,965 Harris County-Houston Sports Authority, Texas, Third 11/24 at 52.47 A 569,810 Lien Revenue Bonds, Series 2004-A3., 0.000%, 11/15/35 - NPFG 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 4,550,554 12,940 0.000%, 8/15/26 (Pre-refunded 8/15/11) 8/11 at 40.60 AAA 5,167,978 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 A- 1,356,500 5,540 0.000%, 9/01/31 - AMBAC Insured No Opt. Call A- 1,390,984 5,000 Metro Health Facilities Development Corporation, Texas, 1/11 at 100.00 Ba3 4,731,250 Hospital Revenue Bonds, Wilson N. Jones Memorial Hospital, Series 2001, 7.250%, 1/01/31 3,295 Tarrant County, Texas, Cultural & Educational Facilities 2/17 at 100.00 AA- 2,827,440 Financing Corporation, Revenue Bonds, Series 2007, Residuals 1760-3, 16.864%, 2/15/36 (IF) 10,500 Texas, General Obligation Bonds, Water Financial 8/11 at 100.00 AA+ 10,881,676 Assistance Program, Series 2001, 5.250%, 8/01/35 ------------------------------------------------------------------------------------------------------------------------------ 179,685 Total Texas 112,733,669 ------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 4.2% (2.8% OF TOTAL INVESTMENTS) 7,250 Seattle, Washington, Municipal Light and Power Revenue 3/11 at 100.00 AAA 7,379,340 Refunding and Improvement Bonds, Series 2001, 5.125%, 3/01/26 - FSA Insured 7,500 Washington State Healthcare Facilities Authority, 10/11 at 100.00 AA 7,567,727 Revenue Bonds, Sisters of Providence Health System, Series 2001A, 5.250%, 10/01/21 - NPFG Insured 840 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 850,409 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 2,100 Washington, Certificates of Participation, Washington 1/10 at 100.00 AA 2,106,406 Convention and Trade Center, Series 1999, 5.125%, 7/01/13 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 17,690 Total Washington 17,903,882 ------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 1.2% (0.8% OF TOTAL INVESTMENTS) 5,000 Mason County, West Virginia, Pollution Control Revenue 10/11 at 100.00 BBB 5,045,000 Bonds, Appalachian Power Company, Series 2003L, 5.500%, 10/01/22 ------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 67 NXZ | Nuveen Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 0.3% (0.2% OF TOTAL INVESTMENTS) $ 1,000 Wisconsin Health and Educational Facilities Authority, 5/12 at 100.00 N/R (4) $ 1,145,430 Revenue Bonds, Divine Savior Healthcare, Series 2002A, 7.375%, 5/01/26 (Pre-refunded 5/01/12) ------------------------------------------------------------------------------------------------------------------------------ $ 755,878 Total Investments (cost $627,295,004) - 149.7% 636,448,449 ===============--------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (6.3)% (26,661,650) ----------------------------------------------------------------------------------------------------------- Variable Rate Demand Preferred Shares, at Liquidation Value - (46.1)% (5) (196,000,000) ----------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.7% 11,466,648 ----------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 425,253,447 ===========================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's 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) Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.8% (6) The Fund's Adviser has concluded this issue is not likely to meet its future interest payment obligations and has directed the Fund's custodian to cease accruing additional income on the Fund's records. N/R Not rated. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 68 Nuveen Investments NZF | Nuveen Dividend Advantage Municipal Fund 3 | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 150.7% (99.3% OF TOTAL INVESTMENTS) ALABAMA - 1.7% (1.1% OF TOTAL INVESTMENTS) $ 3,500 Alabama Special Care Facilities Financing Authority, 11/16 at 100.00 Aa1 $ 3,514,350 Revenue Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36 (UB) 5,655 Alabama State Port Authority, Revenue Bonds, State Docks 10/11 at 100.00 A (4) 6,084,328 Department Facilities, Series 2001, 5.250%, 10/01/26 (Pre-refunded 10/01/11) - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 9,155 Total Alabama 9,598,678 ------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.1% (0.1% OF TOTAL INVESTMENTS) 1,000 Northern Tobacco Securitization Corporation, Alaska, 6/14 at 100.00 Baa3 664,500 Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46 ------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.0% (0.7% OF TOTAL INVESTMENTS) 3,390 Arizona State Transportation Board, Highway Revenue 7/18 at 100.00 AAA 3,807,038 Bonds, Series 2006, Trust 3151, 13.299%, 7/01/33 (IF) 2,200 Salt Verde Financial Corporation, Arizona, Senior Gas No Opt. Call A 1,881,770 Revenue Bonds, Series 2007, 5.000%, 12/01/37 ------------------------------------------------------------------------------------------------------------------------------ 5,590 Total Arizona 5,688,808 ------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.6% (0.4% 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 Caa1 1,683,307 1,900 5.500%, 11/01/14 11/11 at 101.00 Caa1 1,726,929 ------------------------------------------------------------------------------------------------------------------------------ 3,705 Total Arkansas 3,410,236 ------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 13.5% (8.9% OF TOTAL INVESTMENTS) California Health Facilities Financing Authority, Health Facility Revenue Bonds, Adventist Health System/West, Series 2003A: 855 5.000%, 3/01/28 3/13 at 100.00 A 826,058 140 5.000%, 3/01/33 3/13 at 100.00 A 129,983 3,400 California Health Facilities Financing Authority, 10/19 at 100.00 AA 3,451,782 Revenue Bonds, Providence Health & Services, Series 2009B, 5.500%, 10/01/39 2,900 California Health Facilities Financing Authority, 11/16 at 100.00 Aa3 2,684,327 Revenue Bonds, Sutter Health, Series 2007C, 5.000%, 11/15/42 (UB) 5,000 California Infrastructure Economic Development Bank, 8/11 at 102.00 A+ 5,033,150 Revenue Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31 5,355 California Statewide Community Development Authority, 5/18 at 100.00 Aa3 5,672,873 Revenue Bonds, Sutter Health, Tender Option Bond Trust 3175, 13.438%, 11/15/48 (IF) 18,850 California, General Obligation Veterans Welfare Bonds, 12/09 at 100.00 AA- 18,677,146 Series 2001BZ, 5.350%, 12/01/21 - NPFG Insured (Alternative Minimum Tax) 11,865 Golden State Tobacco Securitization Corporation, 6/17 at 100.00 BBB 7,882,987 California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47 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 1/12 at 100.00 A- 14,281,687 Tax) 5,000 5.375%, 1/01/21 - AMBAC Insured (Alternative Minimum 1/12 at 100.00 A- 5,001,100 Tax) 1,500 5.250%, 1/01/23 - AMBAC Insured (Alternative Minimum 1/12 at 100.00 A- 1,447,365 Tax) 10,000 5.500%, 1/01/32 - AMBAC Insured (Alternative Minimum 1/12 at 100.00 A- 9,749,200 Tax) 10,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call A 1,558,000 County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/35 - NPFG Insured 3,000 San Mateo County Community College District, California, No Opt. Call Aa1 951,480 General Obligation Bonds, Series 2006C, 0.000%, 9/01/30 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 91,820 Total California 77,347,138 ------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 69 NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ COLORADO - 6.6% (4.4% OF TOTAL INVESTMENTS) $ 2,250 Canterberry Crossing Metropolitan District II, Parker, 12/12 at 100.00 N/R (4) $ 2,598,278 Colorado, Limited Tax General Obligation Bonds, Series 2002, 7.375%, 12/01/32 (Pre-refunded 12/01/12) 1,565 Colorado Educational and Cultural Facilities Authority, 3/13 at 100.00 N/R (4) 1,827,122 Charter School Revenue Bonds, Belle Creek Education Center, Series 2002A, 7.625%, 3/15/32 (Pre-refunded 3/15/13) 3,085 Colorado Educational and Cultural Facilities Authority, 3/10 at 102.00 N/R (4) 3,218,241 Charter School Revenue Bonds, Montessori Peaks Building Foundation, Series 2002A, 8.000%, 5/01/32 (Pre-refunded 3/01/10) 1,775 Colorado Educational and Cultural Facilities Authority, 6/11 at 100.00 Ba1 (4) 1,957,009 Charter School Revenue Bonds, Weld County School District 6 - Frontier Academy, Series 2001, 7.375%, 6/01/31 (Pre-refunded 6/01/11) 3,345 Colorado Educational and Cultural Facilities Authority, 5/16 at 102.00 N/R 2,754,975 Revenue Bonds, Montessori Peaks Academy, Series 2006, 5.400%, 5/01/26 3,380 Colorado Housing Finance Authority, Multifamily Project 10/11 at 100.00 AAA 3,399,976 Bonds, Class I, Series 2001A-1, 5.500%, 4/01/31 (Alternative Minimum Tax) 5,000 Compark Business Campus Metropolitan District, Colorado, 12/17 at 100.00 BBB- 4,292,850 General Obligation Limited Tax Bonds, Series 2007, 5.600%, 12/01/34 - RAAI Insured 3,300 Denver City and County, Colorado, Airport Revenue Bonds, 11/16 at 100.00 A+ 3,382,566 Series 2006, 5.000%, 11/15/24 - FGIC Insured 2,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 A+ 2,041,480 Refunding Bonds, Series 2001A, 5.500%, 11/15/16 - FGIC Insured (Alternative Minimum Tax) Denver, Colorado, Airport Revenue Bonds, Series 2006: 5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 A+ 5,531,798 4,335 5.000%, 11/15/25 - FGIC Insured (UB) 11/16 at 100.00 A+ 4,422,524 2,000 Maher Ranch Metropolitan District 4, Colorado, General 12/17 at 100.00 BBB- 1,661,260 Obligation Limited Tax Bonds, Series 2007, 5.250%, 12/01/36 - RAAI Insured 1,000 Plaza Metropolitan District 1, Lakewood, Colorado, Tax 6/14 at 101.00 N/R 981,320 Increment Revenue Bonds, Series 2003, 8.000%, 12/01/25 ------------------------------------------------------------------------------------------------------------------------------ 38,400 Total Colorado 38,069,399 ------------------------------------------------------------------------------------------------------------------------------ DELAWARE - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,535 Delaware Housing Authority, Multifamily Mortgage Revenue 7/12 at 100.00 Aa3 1,580,651 Bonds, Series 2001A, 5.400%, 7/01/24 ------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.0% (0.7% OF TOTAL INVESTMENTS) 1,375 District of Columbia, Revenue Bonds, Catholic University 4/10 at 101.00 A 1,389,314 of America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured 1,335 Washington Convention Center Authority, District of 10/16 at 100.00 AAA 1,239,401 Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF) 3,335 Washington DC Convention Center Authority, Dedicated Tax 10/16 at 100.00 AAA 3,096,181 Revenue Bonds, Residual Series 1730, 1731, 1736, 11.538%, 10/01/30 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------ 6,045 Total District of Columbia 5,724,896 ------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 2.1% (1.4% OF TOTAL INVESTMENTS) 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 1,109,265 2,195 5.450%, 12/01/41 - FSA Insured 12/11 at 100.00 AAA 2,199,171 2,775 Pace Property Finance Authority Inc., Florida, Utility 3/10 at 100.00 N/R 2,783,186 System Improvement and Revenue Refunding Bonds, Series 1997, 5.250%, 9/01/17 - AMBAC Insured 5,455 South Miami Health Facilities Authority, Florida, 8/17 at 100.00 AA- 5,120,881 Hospital Revenue, Baptist Health System Obligation Group, Series 2007, 5.000%, 8/15/42 (UB) 1,000 Tolomato Community Development District, Florida, 5/18 at 100.00 N/R 766,610 Special Assessment Bonds, Series 2007, 6.650%, 5/01/40 ------------------------------------------------------------------------------------------------------------------------------ 12,530 Total Florida 11,979,113 ------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.4% (1.6% OF TOTAL INVESTMENTS) 5,000 Atlanta, Georgia, Airport General Revenue Bonds, Series 1/10 at 101.00 A+ 5,002,100 2000B, 5.625%, 1/01/30 - FGIC Insured (Alternative Minimum Tax) 2,700 Atlanta, Georgia, Tax Allocation Bonds, Atlantic Station 12/11 at 101.00 AAA 3,122,766 Project, Series 2001, 7.900%, 12/01/24 (Pre-refunded 12/01/11)
70 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ GEORGIA (continued) $ 2,000 Fulton County Residential Care Facilities Authority, 7/17 at 100.00 N/R $ 1,302,960 Georgia, Revenue Bonds, Elderly Care, Lenbrook Square Project, Series 2006A, 5.125%, 7/01/42 3,740 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 N/R (4) 4,004,942 Revenue Anticipation Certificates, Northeast Georgia Health Services Inc., Series 2001, 5.500%, 5/15/31 (Pre-refunded 5/15/11) 500 Gainesville Redevelopment Authority, Georgia, 3/17 at 100.00 N/R 312,020 Educational Facilities Revenue Bonds, Riverside Military Academy Project, Series 2007, 5.125%, 3/01/37 ------------------------------------------------------------------------------------------------------------------------------ 13,940 Total Georgia 13,744,788 ------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 15.2% (10.0% OF TOTAL INVESTMENTS) 8,375 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1/11 at 101.00 AAA 8,516,286 2001A, 5.500%, 1/01/19 - FSA Insured (Alternative Minimum Tax) 4,950 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 A1 4,683,096 Revenue Bonds, O'Hare International Airport, Series 2001A, 5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 2,220 Chicago, Illinois, Second Lien Wastewater Transmission No Opt. Call A+ 2,501,052 Revenue Bonds, Series 2001A, 5.500%, 1/01/16 - NPFG Insured 10,000 Chicago, Illinois, Senior Lien Water Revenue Bonds, 11/11 at 100.00 Aa3 (4) 10,830,300 Series 2001, 5.000%, 11/01/26 (Pre-refunded 11/01/11) - AMBAC Insured 1,165 Chicago, Illinois, Third Lien General Airport Revenue 1/16 at 100.00 A1 1,167,377 Bonds, 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 A3 2,445,163 Certificates, Local Government Program - Kankakee County, Series 2005B, 5.000%, 12/01/24 - AMBAC Insured 3,385 Illinois Finance Authority, Revenue Bonds, Sherman 8/17 at 100.00 Baa1 3,097,681 Health Systems, Series 2007A, 5.500%, 8/01/37 1,130 Illinois Health Facilities Authority, Revenue Bonds, 5/10 at 101.00 Aaa 1,178,059 Condell Medical Center, Series 2000, 6.500%, 5/15/30 (Pre-refunded 5/15/10) 9,000 Illinois Health Facilities Authority, Revenue Bonds, 12/11 at 101.00 BBB- 8,434,710 Covenant Retirement Communities Inc., Series 2001, 5.875%, 12/01/31 15,000 Illinois Health Facilities Authority, Revenue Bonds, 7/11 at 100.00 Baa3 (4) 16,153,500 Loyola University Health System, Series 2001A, 6.125%, 7/01/31 (Pre-refunded 7/01/11) 5,000 Lake County School District 38, Big Hallow, Illinois, No Opt. Call N/R 2,586,350 General Obligation Bonds, Series 2005, 0.000%, 2/01/22 - AMBAC Insured 7,000 Lombard Public Facilities Corporation, Illinois, First 1/16 at 100.00 N/R 5,956,230 Tier Conference Center and Hotel Revenue Bonds, Series 2005A-1, 7.125%, 1/01/36 16,900 Metropolitan Pier and Exposition Authority, Illinois, 12/09 at 101.00 AAA 17,084,717 Revenue Bonds, McCormick Place Expansion Project, Series 1999A, 5.250%, 12/15/28 - FGIC Insured 2,200 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 2,413,730 Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1998A, 5.500%, 6/15/29 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------ 88,740 Total Illinois 87,048,251 ------------------------------------------------------------------------------------------------------------------------------ INDIANA - 5.9% (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 AA+ (4) 1,365,503 1,000 5.000%, 1/15/26 (Pre-refunded 1/15/12) - AMBAC Insured 1/12 at 100.00 AA+ (4) 1,088,050 Evansville Vanderburgh Public Library Lease Corporation, Indiana, First Mortgage Bonds, Series 2001: 2,000 5.750%, 7/15/18 (Pre-refunded 1/15/12) - NPFG Insured 1/12 at 100.00 A+ (4) 2,208,800 2,750 5.125%, 1/15/24 (Pre-refunded 1/15/12) - NPFG Insured 1/12 at 100.00 A+ (4) 2,999,645 1,250 Hamilton Southeastern Cumberland Campus School Building 1/12 at 100.00 A (4) 1,363,475 Corporation, Indiana, First Mortgage Bonds, Series 2001, 5.125%, 1/15/23 (Pre-refunded 1/15/12) - AMBAC Insured 9,500 Indiana Educational Facilities Authority, Revenue Bonds, 2/11 at 100.00 A 9,662,450 Butler University, Series 2001, 5.500%, 2/01/26 - NPFG Insured 4,230 Indiana Finance Authority, Educational Facilities 6/15 at 100.00 Aa3 4,354,320 Revenue Bonds, Tudor Park Foundation, Series 2005B, 5.000%, 6/01/24 2,800 Indiana Health Facility Financing Authority, Revenue 5/15 at 100.00 A 2,439,948 Bonds, Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 - AMBAC Insured
Nuveen Investments 71 NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ INDIANA (continued) $ 3,500 University of Southern Indiana, Student Fee Bonds, 10/11 at 100.00 A2 $ 3,557,330 Series 2001H, 5.000%, 10/01/21 - AMBAC Insured Vigo County, Indiana, Hospital Authority, Union Hospital, Revenue Bonds, Series 2007: 2,500 5.750%, 9/01/42 9/17 at 100.00 N/R 1,943,700 2,500 5.800%, 9/01/47 9/17 at 100.00 N/R 1,930,425 1,090 Wayne County Jail Holding Corporation, Indiana, First 1/13 at 101.00 A3 (4) 1,237,510 Mortgage Bonds, Series 2001, 5.500%, 7/15/22 (Pre-refunded 1/15/13) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ 34,375 Total Indiana 34,151,156 ------------------------------------------------------------------------------------------------------------------------------ IOWA - 6.2% (4.1% OF TOTAL INVESTMENTS) 2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Great 5/11 at 100.00 Aa3 1,994,840 River Medical Center, Series 2001, 5.250%, 5/15/31 - FSA Insured 1,000 Iowa Tobacco Settlement Authority, Asset Backed 6/15 at 100.00 BBB 735,270 Settlement Revenue Bonds, Series 2005C, 5.625%, 6/01/46 Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B: 26,855 5.300%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 28,672,278 3,950 5.600%, 6/01/35 (Pre-refunded 6/01/11) 6/11 at 101.00 AAA 4,258,890 ------------------------------------------------------------------------------------------------------------------------------ 33,805 Total Iowa 35,661,278 ------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.3% (0.2% OF TOTAL INVESTMENTS) Manhattan Health Care Facility Revenue Bonds, Kansas, Meadowlarks Hills Retirement, Series 2007B: 1,000 5.125%, 5/15/37 5/14 at 103.00 N/R 736,850 1,000 5.125%, 5/15/42 5/14 at 103.00 N/R 719,550 ------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Kansas 1,456,400 ------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 3.5% (2.3% OF TOTAL INVESTMENTS) 1,000 Kentucky Economic Development Finance Authority, 6/18 at 100.00 AAA 1,060,830 Louisville Arena Project Revenue Bonds, Louisville Arena Authority, Inc., Series 2008A-1, 6.000%, 12/01/42 - AGC Insured 18,500 Louisville and Jefferson County Metropolitan Sewer 11/11 at 101.00 AA- 18,917,175 District, Kentucky, Sewer and Drainage System Revenue Bonds, Series 2001A, 5.125%, 5/15/27 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 19,500 Total Kentucky 19,978,005 ------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 4.3% (2.8% OF TOTAL INVESTMENTS) 3,000 Louisiana Local Government Environmental Facilities & 11/17 at 100.00 BB 2,894,970 Community Development Authority, Revenue Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32 3,700 Louisiana Public Facilities Authority, Revenue Bonds, 5/17 at 100.00 A3 3,478,888 Ochsner Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47 19,890 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 BBB 18,001,445 Tobacco Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 ------------------------------------------------------------------------------------------------------------------------------ 26,590 Total Louisiana 24,375,303 ------------------------------------------------------------------------------------------------------------------------------ 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+ 4,641,855 1,610 5.500%, 11/15/32 (Alternative Minimum Tax) 11/10 at 100.00 AA+ 1,614,798 ------------------------------------------------------------------------------------------------------------------------------ 6,220 Total Maine 6,256,653 ------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 2.5% (1.7% OF TOTAL INVESTMENTS) 1,000 Howard County, Maryland, Retirement Community Revenue 4/17 at 100.00 N/R 707,970 Bonds, Vantage House, Series 2007B, 5.250%, 4/01/37 1,570 Maryland Community Development Administration, Insured 7/11 at 100.00 N/R 1,585,606 Multifamily Housing Mortgage Loan Revenue Bonds, Series 2001B, 5.250%, 7/01/21 (Alternative Minimum Tax) 2,000 Maryland Economic Development Corporation, Revenue 12/16 at 100.00 N/R 1,211,520 Bonds, Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 10,600 Maryland Energy Financing Administration, Revenue Bonds, 1/07 at 100.00 N/R 10,602,756 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax)
72 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ MARYLAND (continued) $ 555 Maryland Health and Higher Educational Facilities 7/17 at 100.00 A- $ 487,579 Authority, Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 ------------------------------------------------------------------------------------------------------------------------------ 15,725 Total Maryland 14,595,431 ------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.5% (1.6% OF TOTAL INVESTMENTS) 1,375 Massachusetts Development Finance Agency, Revenue Bonds, 10/12 at 102.00 N/R 1,084,434 Orchard Cove, Series 2007, 5.250%, 10/01/26 1,000 Massachusetts Health and Educational Facilities 7/15 at 100.00 BB- 657,560 Authority, Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30 4,860 Massachusetts Housing Finance Agency, Single Family 6/18 at 100.00 AA 5,168,368 Housing Revenue Bonds, Series 2008, Trust 3145, 15.300%, 6/01/39 (IF) 5,000 Massachusetts Port Authority, Special Facilities Revenue 1/11 at 101.00 N/R 4,120,900 Bonds, Delta Air Lines Inc., Series 2001A, 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 3,465 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 3,202,526 Bonds, Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------ 15,700 Total Massachusetts 14,233,788 ------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 9.7% (6.4% OF TOTAL INVESTMENTS) 15,000 Detroit City School District, Wayne County, Michigan, No Opt. Call AAA 16,655,700 Unlimited Tax School Building and Site Improvement Bonds, Series 2001A, 6.000%, 5/01/29 - FSA Insured (UB) 2,000 Garden City Hospital Finance Authority, Michigan, 8/17 at 100.00 N/R 1,162,940 Revenue Bonds, Garden City Hospital Obligated Group, Series 2007A, 5.000%, 8/15/38 11,000 Kent Hospital Finance Authority, Michigan, Revenue 7/11 at 101.00 AA (4) 11,976,140 Bonds, Spectrum Health, Series 2001A, 5.500%, 1/15/31 (Pre-refunded 7/15/11) 1,165 Michigan State Building Authority, Revenue Bonds, 10/11 at 100.00 A+ 1,190,024 Facilities Program, Series 2001I, 5.500%, 10/15/18 70 Michigan State Building Authority, Revenue Bonds, 10/11 at 100.00 A+ (4) 76,433 Facilities Program, Series 2001I, 5.500%, 10/15/18 (Pre-refunded 10/15/11) 1,355 Michigan State Hospital Finance Authority, Hospital 2/10 at 100.00 Ba3 1,132,468 Revenue Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/23 3,485 Michigan State Hospital Finance Authority, Hospital No Opt. Call A (4) 3,828,656 Revenue Refunding Bonds, Sisters of Mercy Health Corporation, Series 1993P, 5.375%, 8/15/14 - NPFG Insured (ETM) Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Sparrow Obligated Group, Series 2001: 1,400 5.500%, 11/15/21 (Pre-refunded 11/15/11) 11/11 at 101.00 A+ (4) 1,546,146 2,500 5.625%, 11/15/31 (Pre-refunded 11/15/11) 11/11 at 101.00 A+ (4) 2,767,300 3,500 Michigan State Hospital Finance Authority, Revenue 12/16 at 100.00 AA 3,495,205 Bonds, Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31 (UB) 12,640 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 A1 11,915,728 Revenue Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/31 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------ 54,115 Total Michigan 55,746,740 ------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.6% (0.4% OF TOTAL INVESTMENTS) 2,245 Dakota County Community Development Agency, Minnesota, 10/11 at 105.00 Aaa 2,320,140 GNMA Collateralized Multifamily Housing Revenue Bonds, Rose Apartments Project, Series 2001, 6.350%, 10/20/37 (Alternative Minimum Tax) 1,375 Saint Paul Port Authority, Minnesota, Lease Revenue 8/16 at 100.00 N/R 1,070,328 Bonds, Regions Hospital Parking Ramp Project, Series 2007-1, 5.000%, 8/01/36 ------------------------------------------------------------------------------------------------------------------------------ 3,620 Total Minnesota 3,390,468 ------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.9% (0.6% OF TOTAL INVESTMENTS) 2,155 Mississippi Business Finance Corporation, GNMA 11/09 at 103.00 AAA 2,170,214 Collateralized Retirement Facility Mortgage Revenue Refunding Bonds, Aldersgate Retirement Community Inc. Project, Series 1999A, 5.450%, 5/20/34 3,000 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 3,055,230 Revenue Bonds, Baptist Memorial Healthcare, Series 2004, 5.000%, 9/01/24 (UB) ------------------------------------------------------------------------------------------------------------------------------ 5,155 Total Mississippi 5,225,444 ------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 73 NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 3.0% (2.0% OF TOTAL INVESTMENTS) $ 1,495 Cape Girardeau County Industrial Development Authority, 6/17 at 100.00 N/R $ 1,281,634 Missouri, Health Facilities Revenue Bonds, Southeast Missouri Hospital Association, Series 2007, 5.000%, 6/01/36 1,000 Clinton County Industrial Development Authority, 12/17 at 100.00 N/R 728,370 Missouri, Revenue Bonds, Cameron Regional Medical Center, Series 2007, 5.000%, 12/01/32 1,825 Fenton, Missouri, Tax Increment Refunding and 10/12 at 100.00 N/R (4) 2,067,159 Improvement 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 - NPFG Insured 12/11 at 100.00 AA- 3,528,030 3,510 5.250%, 12/01/20 - NPFG Insured 12/11 at 100.00 AA- 3,713,159 3,695 5.250%, 12/01/21 - NPFG Insured 12/11 at 100.00 AA- 3,908,867 2,040 5.250%, 12/01/22 - NPFG Insured 12/11 at 100.00 AA- 2,149,936 ------------------------------------------------------------------------------------------------------------------------------ 16,900 Total Missouri 17,377,155 ------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.6% (0.4% OF TOTAL INVESTMENTS) 5,000 Montana Board of Investments, Exempt Facility Revenue 7/10 at 101.00 B- 3,625,800 Bonds, 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: 1,510 5.250%, 9/01/21 (Alternative Minimum Tax) 9/11 at 100.00 AAA 1,479,150 2,005 5.375%, 9/01/32 (Alternative Minimum Tax) 9/11 at 100.00 AAA 2,013,842 1,005 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 1,527,590 System Revenue Bonds, Nebraska City 2, Series 2006A, Trust 11673, 19.714%, 2/01/49 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------ 4,520 Total Nebraska 5,020,582 ------------------------------------------------------------------------------------------------------------------------------ NEVADA - 0.9% (0.6% OF TOTAL INVESTMENTS) 2,000 Director of Nevada State Department of Business and 1/10 at 100.00 Caa2 410,020 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 1/10 at 102.00 N/R 36,000 Industry, Revenue Bonds, Las Vegas Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40 (6) 170 Nevada Housing Division, Single Family Mortgage Bonds, 4/10 at 100.00 Aaa 171,627 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 AA- (4) 4,683,650 System, Series 2001A, 5.250%, 7/01/26 (Pre-refunded 1/01/12) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------ 10,460 Total Nevada 5,301,297 ------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.4% (0.2% OF TOTAL INVESTMENTS) 2,000 New Hampshire Health and Education Authority, Hospital 10/11 at 101.00 Aa3 2,042,380 Revenue Bonds, Concord Hospital, Series 2001, 5.500%, 10/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 3.9% (2.6% OF TOTAL INVESTMENTS) 10,000 New Jersey Economic Development Authority, Water 11/12 at 101.00 A2 9,500,900 Facilities Revenue Bonds, American Water Company, Series 2002A, 5.250%, 11/01/32 - AMBAC Insured (Alternative Minimum Tax) 495 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba2 347,643 Revenue Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33 4,125 New Jersey Transit Corporation, Certificates of No Opt. Call A1 4,578,544 Participation, Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/13 - AMBAC Insured 20,000 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 6,529,000 Transportation System Bonds, Series 2006C, 0.000%, 12/15/28 - AMBAC Insured 2,045 Tobacco Settlement Financing Corporation, New Jersey, 6/17 at 100.00 BBB 1,429,946 Tobacco Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%, 6/01/34 ------------------------------------------------------------------------------------------------------------------------------ 36,665 Total New Jersey 22,386,033 ------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 4.1% (2.7% OF TOTAL INVESTMENTS) 900 Albany Industrial Development Agency, New York, Revenue 4/17 at 100.00 N/R 717,534 Bonds, Brighter Choice Charter Schools, Series 2007A, 5.000%, 4/01/32 1,780 East Rochester Housing Authority, New York, GNMA Secured 10/11 at 101.00 AAA 1,808,605 Revenue Bonds, Gates Senior Housing Inc., Series 2001, 5.300%, 4/20/31
74 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 5,010 Hudson Yards Infrastructure Corporation, New York, 2/17 at 100.00 A $ 4,224,683 Revenue Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured 4,155 Monroe County Airport Authority, New York, Revenue No Opt. Call A 4,378,040 Refunding Bonds, Greater Rochester International Airport, Series 1999, 5.750%, 1/01/13 - NPFG Insured (Alternative Minimum Tax) 8,000 New York City Industrial Development Agency, New York, 8/16 at 101.00 B- 7,769,840 American Airlines-JFK International Airport Special Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax) 1,715 New York City, New York, General Obligation Bonds, 8/12 at 100.00 AA 1,788,711 Fiscal Series 2002G, 5.625%, 8/01/20 - NPFG Insured 785 New York City, New York, General Obligation Bonds, 8/12 at 100.00 Aa3 (4) 884,287 Fiscal Series 2002G, 5.625%, 8/01/20 (Pre-refunded 8/01/12) - NPFG Insured 2,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- 2,072,920 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16 ------------------------------------------------------------------------------------------------------------------------------ 24,345 Total New York 23,644,620 ------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.1% (0.7% OF TOTAL INVESTMENTS) 1,710 Charlotte-Mecklenberg Hospital Authority, North 1/18 at 100.00 AA- 1,525,423 Carolina, Carolinas HealthCare System Revenue Bonds, Series 2008, Trust 1149, 14.759%, 1/15/47 (IF) 1,200 Charlotte-Mecklenburg Hospital Authority, North 1/17 at 100.00 AA- 1,198,356 Carolina, Health Care System Revenue Bonds, Carolinas Health Care, Series 2007A, 5.000%, 1/15/31 1,750 Charlotte-Mecklenburg Hospital Authority, North 1/15 at 100.00 AAA 1,984,553 Carolina, Healthcare System Revenue Bonds, DBA Carolinas Healthcare System, Series 2005A, 4.875%, 1/15/32 (Pre-refunded 1/15/15) 1,600 North Carolina Municipal Power Agency 1, Catawba No Opt. Call A 1,758,160 Electric Revenue Bonds, Series 2003A, 5.500%, 1/01/13 ------------------------------------------------------------------------------------------------------------------------------ 6,260 Total North Carolina 6,466,492 ------------------------------------------------------------------------------------------------------------------------------ OHIO - 2.2% (1.5% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: 3,170 5.125%, 6/01/24 6/17 at 100.00 BBB 2,823,392 710 5.875%, 6/01/30 6/17 at 100.00 BBB 617,963 685 5.750%, 6/01/34 6/17 at 100.00 BBB 576,051 1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,163,244 1,235 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/10 at 100.00 Aaa 1,249,301 Securities Program Residential Mortgage Revenue Bonds, Series 1998A-1, 5.300%, 9/01/19 - FSA Insured (Alternative Minimum Tax) 6,600 Ohio Water Development Authority, Solid Waste Disposal 3/10 at 102.00 N/R 6,336,132 Revenue Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 13,970 Total Ohio 12,766,083 ------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 2.0% (1.3% OF TOTAL INVESTMENTS) Oklahoma Development Finance Authority, Revenue Bonds, Saint John Health System, Series 2007: 4,370 5.000%, 2/15/37 2/17 at 100.00 A 4,187,727 955 5.000%, 2/15/42 2/17 at 100.00 A 901,014 6,305 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 6,078,020 Revenue Bonds, Saint Francis Health System, Series 2006, 5.000%, 12/15/36 (UB) 88 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 82,239 Revenue Bonds, Saint Francis Health System, Series 2006, Trust 3500, 8.366%, 12/15/36 (IF) ------------------------------------------------------------------------------------------------------------------------------ 11,718 Total Oklahoma 11,249,000 ------------------------------------------------------------------------------------------------------------------------------ OREGON - 2.6% (1.7% OF TOTAL INVESTMENTS) 4,700 Oregon Health, Housing, Educational and Cultural 11/11 at 101.00 AA- 4,793,718 Facilities 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 10,040,000 Multifamily Housing Revenue Bonds, Series 2000A, 6.050%, 7/01/42 (Alternative Minimum Tax) (UB) ------------------------------------------------------------------------------------------------------------------------------ 14,700 Total Oregon 14,833,718 ------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 75 NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 1.9% (1.2% 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 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA $ 2,222,620 2,000 9.250%, 11/15/30 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 2,222,620 500 Bucks County Industrial Development Authority, 3/17 at 100.00 BBB 412,305 Pennsylvania, Charter School Revenue Bonds, School Lane Charter School, Series 2007A, 5.000%, 3/15/37 3,500 Pennsylvania Economic Development Financing Authority, 1/10 at 100.00 CC 2,275,350 Senior Lien Resource Recovery Revenue Bonds, Northampton Generating Project, Series 1994A, 6.600%, 1/01/19 (Alternative Minimum Tax) 3,205 Philadelphia School District, Pennsylvania, General 8/12 at 100.00 Aa3 (4) 3,607,548 Obligation Bonds, Series 2002B, 5.625%, 8/01/16 (Pre-refunded 8/01/12) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------ 11,205 Total Pennsylvania 10,740,443 ------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.4% (0.3% OF TOTAL INVESTMENTS) 2,500 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/17 at 100.00 AA- 2,541,175 Revenue Bonds, Series 2007A, 5.250%, 8/01/57 ------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.3% (0.9% OF TOTAL INVESTMENTS) 6,850 South Carolina Transportation Infrastructure Bank, 10/11 at 100.00 A1 (4) 7,459,924 Revenue Bonds, Series 2001A, 5.500%, 10/01/22 (Pre-refunded 10/01/11) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.6% (1.0% OF TOTAL INVESTMENTS) 3,680 Knox County Health, Educational and Housing Facilities 1/17 at 30.07 A- 474,941 Board, Tennessee, Hospital Revenue Refunding Bonds, Covenant Health, Series 2006, 0.000%, 1/01/41 5,210 Memphis-Shelby County Airport Authority, Tennessee, 3/11 at 100.00 AAA 5,385,629 Airport Revenue Bonds, Series 2001A, 5.500%, 3/01/14 - FSA Insured (Alternative Minimum Tax) 275 Sullivan County Health Educational and Housing 9/16 at 100.00 BBB+ 230,073 Facilities Board, Tennessee, Revenue Bonds, Wellmont Health System, Series 2006C, 5.250%, 9/01/36 Sumner County Health, Educational, and Housing Facilities Board, Tennessee, Revenue Refunding Bonds, Sumner Regional Health System Inc., Series 2007: 800 5.500%, 11/01/37 11/17 at 100.00 N/R 304,080 2,800 5.500%, 11/01/46 11/17 at 100.00 N/R 1,064,280 745 Tennessee Housing Development Agency, Homeownership 1/10 at 100.00 AA+ 745,581 Program Bonds, Series 1998-2, 5.350%, 7/01/23 (Alternative Minimum Tax) 760 Tennessee Housing Development Agency, Homeownership 7/11 at 100.00 AA+ 766,468 Program Bonds, Series 2001-3A, 5.200%, 7/01/22 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------ 14,270 Total Tennessee 8,971,052 ------------------------------------------------------------------------------------------------------------------------------ TEXAS - 20.1% (13.2% OF TOTAL INVESTMENTS) 5,445 Board of Regents, University of Texas System, Financing 2/17 at 100.00 AAA 5,181,081 System Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB) 595 Brushy Creek Municipal Utility District, Williamson 1/10 at 100.00 Aa3 595,411 County, 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 AA 1,944,838 2,005 5.000%, 2/15/21 - FGIC Insured 2/11 at 100.00 AA 2,038,002 3,850 Dallas-Ft. Worth International Airport, Texas, Joint 11/11 at 100.00 A+ 3,859,394 Revenue 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 4,864,400 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 AAA 4,114,215 Obligation, Series 2001, 5.000%, 8/15/27 6,000 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AA (4) 7,097,160 Revenue Refunding Bonds, Series 2001B, 5.500%, 12/01/29 - NPFG Insured (ETM) 7,000 Houston, Texas, Subordinate Lien Airport System Revenue 1/10 at 100.00 A 7,010,360 Bonds, Series 1998B, 5.250%, 7/01/14 - FGIC Insured (Alternative Minimum Tax)
76 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) 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 A $ 2,672,410 2,905 5.500%, 7/01/14 - FGIC Insured (Alternative Minimum Tax) 1/12 at 100.00 A 3,044,818 14,200 Hutto Independent School District, Williamson County, 8/16 at 100.00 AAA 14,235,642 Texas, General Obligation Bonds, Series 2007A, 4.750%, 8/01/43 (UB) 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 N/R 8,615,005 8,500 5.500%, 8/15/41 - AMBAC Insured 8/11 at 100.00 N/R 8,339,010 10,700 Laredo Independent School District, Webb County, Texas, 8/11 at 100.00 AAA 11,119,761 General Obligation Refunding Bonds, Series 2001, 5.000%, 8/01/25 2,500 Matagorda County Navigation District 1, Texas, No Opt. Call BBB+ 2,363,850 Collateralized Revenue Refunding Bonds, Houston Light and Power Company, Series 1997, 5.125%, 11/01/28 - AMBAC Insured (Alternative Minimum Tax) 3,150 North Texas Thruway Authority, Second Tier System 1/18 at 100.00 A3 3,186,540 Revenue Refunding Bonds, Series 2008, 5.750%, 1/01/38 3,045 Port of Houston Authority, Harris County, Texas, General 10/11 at 100.00 AAA 3,119,146 Obligation Port Improvement Bonds, Series 2001B, 5.500%, 10/01/17 - FGIC Insured (Alternative Minimum Tax) 7,700 Tarrant County, Texas, Cultural & Educational Facilities 2/17 at 100.00 AA- 7,426,573 Financing Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%, 2/15/36 (UB) 9,780 Texas Department of Housing and Community Affairs, 7/11 at 100.00 AAA 9,540,781 Residential Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33 (Alternative Minimum Tax) White Settlement Independent School District, Tarrant County, Texas, General Obligation Bonds, Series 2006: 9,110 0.000%, 8/15/37 8/15 at 31.98 AAA 2,038,636 9,110 0.000%, 8/15/40 8/15 at 27.11 AAA 1,729,260 7,110 0.000%, 8/15/44 8/15 at 21.88 AAA 1,069,344 ------------------------------------------------------------------------------------------------------------------------------ 134,680 Total Texas 115,205,637 ------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.5% (0.3% OF TOTAL INVESTMENTS) Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001E: 935 5.200%, 1/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- 944,257 265 5.500%, 1/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aaa 262,774 Utah Housing Corporation, Single Family Mortgage Bonds, Series 2001F-1: 1,345 4.950%, 7/01/18 (Alternative Minimum Tax) 7/11 at 100.00 AA- 1,345,659 375 5.300%, 7/01/23 (Alternative Minimum Tax) 7/11 at 100.00 Aaa 368,359 ------------------------------------------------------------------------------------------------------------------------------ 2,920 Total Utah 2,921,049 ------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.1% (0.1% OF TOTAL INVESTMENTS) 1,000 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 789,500 Mortgage Revenue Bonds, Lucy Corr Village, Series 2005, 5.375%, 12/01/28 ------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 16.4% (10.8% OF TOTAL INVESTMENTS) Bellingham Housing Authority, Washington, Housing Revenue Bonds, Varsity Village Project, Series 2001A: 1,000 5.500%, 12/01/27 - NPFG Insured 12/11 at 100.00 A1 1,017,470 2,000 5.600%, 12/01/36 - NPFG Insured 12/11 at 100.00 A1 2,015,920 2,500 King County, Washington, Sewer Revenue Bonds, Series 1/19 at 100.00 AA+ 2,605,100 2009, 5.250%, 1/01/42 12,955 Port of Seattle, Washington, Passenger Facility Charge 12/09 at 100.50 A 13,086,364 Revenue Bonds, Series 1998A, 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 10/11 at 100.00 Aa2 2,585,370 Tax) (UB) 16,000 5.100%, 4/01/24 - FGIC Insured (Alternative Minimum 1/10 at 100.00 Aa2 15,854,400 Tax) (UB) 2,090 Public Utility District 1, Benton County, Washington, 11/11 at 100.00 AAA 2,268,779 Electric 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 5,938,724 Refunding and Improvement Bonds, Series 2001, 5.500%, 3/01/18 - FSA Insured
Nuveen Investments 77 NZF | Nuveen Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) $ 4,530 Tacoma, Washington, Solid Waste Utility Revenue 12/11 at 100.00 AA (4) $ 4,947,258 Refunding Bonds, Series 2001, 5.250%, 12/01/21 (Pre-refunded 12/01/11) - AMBAC Insured 3,720 Washington State Healthcare Facilities Authority, 10/11 at 100.00 Aa3 (4) 4,046,876 Revenue 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 (Pre-refunded 10/01/11) - RAAI Insured 10/11 at 101.00 BBB- (4) 6,003,011 25,435 5.625%, 10/01/31 (Pre-refunded 10/01/11) - RAAI Insured 10/11 at 101.00 BBB- (4) 27,922,797 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 BBB+ 3,038,416 2,915 5.375%, 12/01/18 - AMBAC Insured 12/11 at 101.00 BBB+ 2,934,997 ------------------------------------------------------------------------------------------------------------------------------ 89,845 Total Washington 94,265,482 ------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 4.7% (3.0% OF TOTAL INVESTMENTS) Appleton, Wisconsin, Waterworks Revenue Refunding Bonds, Series 2001: 3,705 5.375%, 1/01/20 (Pre-refunded 1/01/12) - FGIC Insured 1/12 at 100.00 N/R (4) 4,053,196 1,850 5.000%, 1/01/21 (Pre-refunded 1/01/12) - FGIC Insured 1/12 at 100.00 N/R (4) 2,009,025 12,250 La Crosse, Wisconsin, Pollution Control Revenue 12/09 at 101.00 A3 12,533,955 Refunding Bonds, Dairyland Power Cooperative, Series 1997B, 5.550%, 2/01/15 - AMBAC Insured 1,000 Wisconsin Health and Educational Facilities Authority, 9/17 at 100.00 BBB+ 846,040 Revenue Bonds, Franciscan Sisters of Christian Charity HealthCare Ministry, Series 2007, 5.000%, 9/01/33 350 Wisconsin Health and Educational Facilities Authority, 10/11 at 101.00 AA- 354,932 Revenue Bonds, Froedtert and Community Health Obligated Group, Series 2001, 5.375%, 10/01/30 3,650 Wisconsin Health and Educational Facilities Authority, 10/11 at 101.00 AA- (4) 3,994,889 Revenue Bonds, Froedtert and Community Health Obligated Group, Series 2001, 5.375%, 10/01/30 (Pre-refunded 10/01/11) 2,500 Wisconsin Health and Educational Facilities Authority, 2/12 at 100.00 BBB+ 2,514,575 Revenue Bonds, Marshfield Clinic, Series 2001B, 6.000%, 2/15/25 50 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 BBB+ 42,046 Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33 ------------------------------------------------------------------------------------------------------------------------------ 25,355 Total Wisconsin 26,348,658 ------------------------------------------------------------------------------------------------------------------------------ $ 924,428 Total Municipal Bonds (cost $872,416,114) 863,883,204 ===============--------------------------------------------------------------------------------------------------------------- SHARES DESCRIPTION (1) VALUE ------------------------------------------------------------------------------------------------------------------------------ INVESTMENT COMPANIES - 0.6% (0.4% OF TOTAL INVESTMENTS) 10,766 BlackRock MuniHoldings Fund Inc. $ 157,830 26,880 Dreyfus Strategic Municipal Fund 201,600 131,278 DWS Municipal Income Trust 1,490,005 43,420 PIMCO Municipal Income Fund II 440,279 43,020 Van Kampen Investment Grade Municipal Trust 582,921 30,000 Van Kampen Municipal Opportunity Trust 396,900 ------------------------------------------------------------------------------------------------------------------------------ Total Investment Companies (cost $3,388,285) 3,269,535 ----------------------------------------------------------------------------------------------------------- Total Long-Term Investments (cost $875,804,399) - 151.3% 867,152,739 -----------------------------------------------------------------------------------------------------------
78 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 0.4% (0.3% OF TOTAL INVESTMENTS) $ 2,325 Maryland Transportation Authority, Revenue Bonds, 7/17 at 100.00 A-1 $ 2,325,000 Transportation Facilities Projects, Variable Rate Demand Obligations, Series 2008, 0.240%, 7/01/34 - FSA Insured (6) ===============--------------------------------------------------------------------------------------------------------------- Total Short-Term Investments (cost $2,325,000) 2,325,000 ----------------------------------------------------------------------------------------------------------- Total Investments (cost $878,129,399) - 151.7% 869,477,739 ----------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (13.2)% (75,908,650) ----------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.8% 16,468,739 ----------------------------------------------------------------------------------------------------------- Auction Rate Preferred Shares, at Liquidation Value - (41.3)% (7) (236,950,000) ----------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 573,087,828 ===========================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's 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 is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. (6) The Fund's Adviser has concluded this issue is not likely to meet its future interest payment obligations and has directed the Fund's custodian to cease accruing additional income on the Fund's records. (7) Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 27.3% N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. Nuveen Investments 79 | Statement of | Assets & Liabilities October 31, 2009
PERFORMANCE MUNICIPAL MARKET PLUS ADVANTAGE OPPORTUNITY (NPP) (NMA) (NMO) ------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $1,286,419,790, $951,929,964 and $1,011,308,429, respectively) $ 1,311,136,145 $ 948,796,834 $ 997,616,000 Cash -- 326,405 2,264,536 Receivables: Dividends and interest 19,673,422 16,205,061 15,509,796 Investments sold 19,595,000 27,332,250 20,383,900 Deferred offering costs -- -- -- Other assets 265,595 210,839 240,654 ------------------------------------------------------------------------------------------------------------------- Total assets 1,350,670,162 992,871,389 1,036,014,886 ------------------------------------------------------------------------------------------------------------------- LIABILITIES Cash overdraft 6,647,209 -- -- Floating rate obligations 42,945,000 67,694,983 48,745,000 Payables: Investments purchased 6,408,325 19,528,605 17,477,313 Auction Rate Preferred share dividends 20,045 14,566 18,882 Common share dividends 3,719,388 2,775,284 2,908,499 Variable Rate Demand Preferred shares, at liquidation value -- -- -- Accrued expenses: Management fees 702,530 499,270 523,832 Other 454,953 345,516 347,444 ------------------------------------------------------------------------------------------------------------------- Total liabilities 60,897,450 90,858,224 70,020,970 ------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred shares, at liquidation value 419,900,000 293,200,000 346,675,000 ------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 869,872,712 $ 608,813,165 $ 619,318,916 =================================================================================================================== Common shares outstanding 59,914,073 43,235,072 45,557,788 =================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.52 $ 14.08 $ 13.59 =================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 599,141 $ 432,351 $ 455,578 Paid-in surplus 838,355,071 604,606,186 635,757,216 Undistributed (Over-distribution of) net investment income 11,740,346 8,985,143 9,176,487 Accumulated net realized gain (loss) from investments and derivative transactions (5,538,201) (2,077,385) (12,377,936) Net unrealized appreciation (depreciation) of investments 24,716,355 (3,133,130) (13,692,429) ------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 869,872,712 $ 608,813,165 $ 619,318,916 =================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 200,000,000 Auction Rate Preferred 1,000,000 1,000,000 1,000,000 Variable Rate Demand Preferred -- -- -- ===================================================================================================================
80 Nuveen Investments
DIVIDEND DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NAD) (NXZ) (NZF) ------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $843,692,750, $627,295,004 and $878,129,399, respectively) $ 836,463,181 $ 636,448,449 $ 869,477,739 Cash -- 279,403 2,693,790 Receivables: Dividends and interest 13,352,022 11,521,392 15,472,256 Investments sold 22,441,300 -- 1,673,655 Deferred offering costs -- 2,214,920 -- Other assets 168,858 37,190 162,690 ------------------------------------------------------------------------------------------------------------------- Total assets 872,425,361 650,501,354 889,480,130 ------------------------------------------------------------------------------------------------------------------- LIABILITIES Cash overdraft 2,702,217 -- -- Floating rate obligations 51,605,000 26,661,650 75,908,650 Payables: Investments purchased 7,274,876 -- 11,359 Auction Rate Preferred share dividends 11,253 -- 10,106 Common share dividends 2,781,632 2,212,650 2,903,343 Variable Rate Demand Preferred shares, at liquidation value -- 196,000,000 -- Accrued expenses: Management fees 443,783 278,555 392,044 Other 272,450 95,052 216,800 ------------------------------------------------------------------------------------------------------------------- Total liabilities 65,091,211 225,247,907 79,442,302 ------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred shares, at liquidation value 261,800,000 -- 236,950,000 ------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 545,534,150 $ 425,253,447 $ 573,087,828 =================================================================================================================== Common shares outstanding 39,287,298 29,436,352 40,378,174 =================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 13.89 $ 14.45 $ 14.19 =================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 392,873 $ 294,364 $ 403,782 Paid-in surplus 551,021,937 420,673,054 575,532,006 Undistributed (Over-distribution of) net investment income 7,380,865 3,538,442 6,415,652 Accumulated net realized gain (loss) from investments and derivative transactions (6,031,956) (8,405,858) (611,952) Net unrealized appreciation (depreciation) of investments (7,229,569) 9,153,445 (8,651,660) ------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 545,534,150 $ 425,253,447 $ 573,087,828 =================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Auction Rate Preferred Unlimited Unlimited Unlimited Variable Rate Demand Preferred -- Unlimited -- ===================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 81 | Statement of | Operations Year Ended October 31, 2009
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 71,670,777 $ 54,980,490 $ 57,545,906 $ 48,064,381 $ 37,461,031 $ 48,874,903 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 7,790,181 5,533,758 5,860,313 4,836,311 3,706,653 5,063,119 Auction fees 861,237 623,050 700,106 524,295 198,721 507,965 Dividend disbursing agent fees 50,000 50,000 40,000 30,000 21,877 30,000 Shareholders' servicing agent fees and expenses 122,259 76,672 79,700 10,749 4,605 6,112 Interest expense and amortization of offering costs 424,808 519,599 419,116 453,184 1,745,939 597,338 Liquidity fees -- -- -- -- 1,516,104 -- Custodian's fees and expenses 220,875 161,533 172,793 143,811 110,682 150,642 Directors'/Trustees' fees and expenses 39,719 27,950 29,908 24,331 18,721 24,965 Professional fees 92,807 69,862 73,076 59,118 46,521 61,810 Shareholders' reports - printing and mailing expenses 212,025 142,476 159,250 124,727 90,623 125,150 Stock exchange listing fees 20,540 14,880 15,628 13,480 4,153 5,703 Investor relations expense 77,715 54,894 57,991 47,076 35,748 48,152 Other expenses 66,105 53,554 56,399 37,702 23,316 38,678 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 9,978,271 7,328,228 7,664,280 6,304,784 7,523,663 6,659,634 Custodian fee credit (2,344) (33,405) (18,467) (28,055) (7,809) (33,380) Expense reimbursement -- -- -- (282,920) (707,935) (1,180,795) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 9,975,927 7,294,823 7,645,813 5,993,809 6,807,919 5,445,459 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 61,694,850 47,685,667 49,900,093 42,070,572 30,653,112 43,429,444 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments (3,345,387) (953,244) 2,387,779 (762,348) (3,563,781) (520,239) Futures contracts -- -- -- -- -- 1,331,299 Change in net unrealized appreciation (depreciation) of: Investments 101,733,867 77,128,841 49,202,041 76,279,407 50,177,046 76,051,358 Futures contracts -- -- -- -- -- 679,241 ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 98,388,480 76,175,597 51,589,820 75,517,059 46,613,265 77,541,659 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS From net investment income (3,512,067) (2,612,721) (2,842,583) (2,117,175) -- (2,094,400) From accumulated net realized gains -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders (3,512,067) (2,612,721) (2,842,583) (2,117,175) -- (2,094,400) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common Shares from operations $ 156,571,263 $ 121,248,543 $ 98,647,330 $ 115,470,456 $ 77,266,377 $ 118,876,703 ====================================================================================================================================
See accompanying notes to financial statements. 82 Nuveen Investments | Statement of | Changes in Net Assets
PERFORMANCE PLUS (NPP) MUNICIPAL ADVANTAGE (NMA) MARKET OPPORTUNITY (NMO) -------------------------------- -------------------------------- --------------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 61,694,850 $ 60,898,881 $ 47,685,667 $ 46,529,938 $ 49,900,093 $ 47,049,012 Net realized gain (loss) from: Investments (3,345,387) (328,499) (953,244) (1,136,012) 2,387,779 (1,618,281) Forward swaps -- -- -- -- -- -- Futures contracts -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments 101,733,867 (153,071,771) 77,128,841 (130,946,869) 49,202,041 (116,402,236) Forward swaps -- -- -- -- -- -- Futures contracts -- -- -- -- -- -- Distributions to Auction Rate Preferred shareholders: From net investment income (3,512,067) (17,368,890) (2,612,721) (12,897,786) (2,842,583) (13,956,934) From accumulated net realized gains -- -- -- (363,253) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 156,571,263 (109,870,279) 121,248,543 (98,813,982) 98,647,330 (84,928,439) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (47,194,320) (41,700,208) (36,309,116) (33,361,611) (36,674,027) (33,302,749) From accumulated net realized gains -- -- -- (1,028,506) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (47,194,320) (41,700,208) (36,309,116) (34,390,117) (36,674,027) (33,302,749) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- 271,443 -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- 271,443 -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 109,376,943 (151,570,487) 85,210,870 (133,204,099) 61,973,303 (118,231,188) Net assets applicable to Common shares at the beginning of year 760,495,769 912,066,256 523,602,295 656,806,394 557,345,613 675,576,801 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $ 869,872,712 $ 760,495,769 $ 608,813,165 $ 523,602,295 $ 619,318,916 $ 557,345,613 ==================================================================================================================================== Undistributed (Over-distribution of)net investment income at the end of year $ 11,740,346 $ 871,663 $ 8,985,143 $ 444,924 $ 9,176,487 $ (1,194,990) ====================================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 83 | Statement of | Changes in Net Assets (continued) October 31, 2009
DIVIDEND ADVANTAGE (NAD) DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF) -------------------------------- -------------------------------- --------------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 42,070,572 $ 41,327,650 $ 30,653,112 $ 30,875,115 $ 43,429,444 $ 42,950,481 Net realized gain (loss) from: Investments (762,348) 1,445,057 (3,563,781) 3,731,159 (520,239) (3,045,414) Forward swaps -- -- -- -- -- 2,733,000 Futures contracts -- -- -- -- 1,331,299 865,654 Change in net unrealized appreciation (depreciation) of: Investments 76,279,407 (124,805,304) 50,177,046 (86,311,451) 76,051,358 (117,423,115) Forward swaps -- -- -- -- -- (1,472,119) Futures contracts -- -- -- -- 679,241 (679,241) Distributions to Auction Rate Preferred shareholders: From net investment income (2,117,175) (10,685,162) -- (6,026,331) (2,094,400) (11,064,289) From accumulated net realized gains -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 115,470,456 (92,717,759) 77,266,377 (57,731,508) 118,876,703 (87,135,043) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (32,490,598) (30,223,720) (26,078,788) (25,763,976) (34,349,713) (31,212,328) From accumulated net realized gains -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (32,490,598) (30,223,720) (26,078,788) (25,763,976) (34,349,713) (31,212,328) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- 126,288 443,496 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- 126,288 443,496 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 82,979,858 (122,941,479) 51,313,877 (83,051,988) 84,526,990 (118,347,371) Net assets applicable to Common shares at the beginning of year 462,554,292 585,495,771 373,939,570 456,991,558 488,560,838 606,908,209 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $ 545,534,150 $ 462,554,292 $ 425,253,447 $ 373,939,570 $ 573,087,828 $ 488,560,838 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 7,380,865 $ 154,163 $ 3,538,442 $ (762,556) $ 6,415,652 $ (568,658) ====================================================================================================================================
See accompanying notes to financial statements. 84 Nuveen Investments | Statement of | Cash Flows Year Ended October 31, 2009
MUNICIPAL DIVIDEND DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMA) (NAD) (NXZ) (NZF) ------------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES: NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 121,248,543 $ 115,470,456 $ 77,266,377 $ 118,876,703 Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in)operating activities: Purchases of investments (82,196,025) (79,636,661) (33,168,991) (18,387,465) Proceeds from sales and maturities of investments 111,091,760 74,910,841 13,459,816 19,438,983 Proceeds from (Purchases of) short-term investments, net -- 19,325,000 4,680,000 (2,325,000) Proceeds from closed/expired futures contracts -- -- -- 1,331,299 Amortization (Accretion) of premiums and discounts, net (4,873,713) (7,063,189) (1,614,975) 1,009,280 (Increase) Decrease in receivable for dividends and interest (51,696) (994,832) (488,632) (546,848) (Increase) Decrease in receivable for investments sold (27,332,250) (22,441,300) 12,500,502 (1,017,152) (Increase) Decrease in other assets (109,649) (77,097) 24,345 (103,933) Increase (Decrease) in payable for investments purchased 19,528,605 7,274,876 (7,746,444) 11,359 Increase (Decrease) in payable for Auction Rate Preferred share dividends (79,546) (53,207) -- (52,973) Increase (Decrease) in payable for variation margin on futures contracts -- -- -- (185,250) Increase (Decrease) in accrued management fees 40,887 86,341 45,385 83,713 Increase (Decrease) in accrued other liabilities 46,390 26,390 80,276 (72,677) Net realized (gain) loss from investments 953,244 762,348 3,563,781 520,239 Net realized (gain) loss from futures contracts -- -- -- (1,331,299) Change in net unrealized (appreciation) depreciation of investments (77,128,841) (76,279,407) (50,177,046) (76,051,358) Taxes paid on undistributed capital gains (15) -- (118,199) -- ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by (used in) operating activities 61,137,694 31,310,559 18,306,195 41,197,621 ------------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM FINANCING ACTIVITIES: Increase (Decrease) in cash overdraft (497,704) 2,702,217 (182,797) (631,450) Increase (Decrease) in floating rate obligations 23,780,000 (2,950,000) 8,140,000 29,900,000 Cash distributions paid to Common shareholders (35,643,585) (32,162,878) (25,799,028) (34,022,032) (Increase) Decrease in deferred offering costs -- -- 37,255 -- Increase (Decrease) in payable for offering cost -- -- (222,222) -- Increase (Decrease) in Auction Rate Preferred shares, at liquidation value (48,450,000) (5,000,000) -- (33,825,000) ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by (used in) financing activities (60,811,289) (37,410,661) (18,026,792) (38,578,482) ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE (DECREASE) IN CASH 326,405 (6,100,102) 279,403 2,619,139 Cash at the beginning of year -- 6,100,102 -- 74,651 ------------------------------------------------------------------------------------------------------------------------------------ Cash at the End of Year $ 326,405 $ -- $ 279,403 $ 2,693,790 ====================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid for interest (excluding amortization of offering costs, where applicable) was as follows:
MUNICIPAL DIVIDEND DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMA) (NAD) (NXZ) (NZF) ------------------------------------------------------------------------------------------------------------------------------------ $ 519,599 $ 453,184 $ 1,670,114 $ 597,338 ====================================================================================================================================
Non-cash financing activities not included herein consist of reinvestments of Common share distributions of $271,443 and $126,288 for Municipal Advantage (NMA) and Dividend Advantage 2 (NXZ), respectively. See accompanying notes to financial statements. Nuveen Investments 85 | Notes to | Financial Statements 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES 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) (collectively, the "Funds"). Performance Plus (NPP), Municipal Advantage (NMA), Market Opportunity (NMO) and Dividend Advantage (NAD) are traded on the New York Stock Exchange (NYSE) while Dividend Advantage 2 (NXZ) and Dividend Advantage 3 (NZF) are traded on the NYSE Amex. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end, management investment companies. Each Fund seeks to provide current income exempt from regular federal income tax by investing primarily in a portfolio of municipal obligations issued by state and local government authorities or certain U.S. territories. In June 2009, the Financial Accounting Standards Board (FASB) established the FASB Accounting Standards Codification(TM) (the "Codification") as the single source of authoritative accounting principles recognized by the FASB in the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). The Codification supersedes existing non-grandfathered, non-SEC accounting and reporting standards. The Codification did not change GAAP but rather organized it into a hierarchy where all guidance within the Codification carries an equal level of authority. The Codification became effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Codification did not have a material effect on the Funds' financial statements. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with US generally accepted accounting principles. Investment Valuation 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 are 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. 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. Prices of forward swap contracts are also provided by an independent pricing service approved by each Fund's Board of Directors/Trustees. Futures contracts are valued using the closing settlement price, or, in the absence of such a price, at the mean of the bid and asked prices. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service or, in the absence of a pricing service for a particular investment or derivative instrument, the Board of Directors/Trustees of the Fund, or its designee, may establish fair value using a wide variety of market data including yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates 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/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/delayed delivery purchase commitments. At October 31, 2009, Performance Plus (NPP), Municipal Advantage (NMA), Market Opportunity (NMO) and Dividend Advantage (NAD) had outstanding when-issued/delayed delivery purchase commitments of $6,408,325, $19,528,605, $17,477,313 and $7,274,876, respectively. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Dividend income is recorded on the ex-dividend date. Dividend income is recorded on the ex-dividend date when information is available. 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. 86 Nuveen Investments Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its 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. For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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 at least 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 US generally accepted accounting principles. Auction Rate Preferred Shares The following Funds have issued and outstanding Auction Rate Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Auction Rate 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. As of October 31, 2009, the number of Auction Rate Preferred shares outstanding, by Series and in total, for each Fund is as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NZF) ------------------------------------------------------------------------------------------------------------------- Number of shares: Series M 3,507 2,457 3,649 3,550 -- Series T 3,506 2,457 3,648 3,549 -- Series W 3,505 2,456 2,920 -- 3,159 Series TH 2,770 1,901 -- 3,373 3,159 Series F 3,508 2,457 3,650 -- 3,160 ------------------------------------------------------------------------------------------------------------------- Total 16,796 11,728 13,867 10,472 9,478 ===================================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the Auction Rate Preferred shares issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many Auction Rate Preferred shareholders who wanted to sell their shares in these auctions were unable to do so. Auction Rate Preferred shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions as calculated in accordance with the pre-established terms of the Auction Rate Preferred shares. These developments have generally not affected the management or investment policies of the Funds. However, one continuing implication of these auction failures for Common shareholders is that the Funds' cost of leverage likely has been incrementally higher at times, than it otherwise would have been had the auctions continued to be successful. As a result, the Funds' future Common share earnings may likely have been incrementally lower than they otherwise would have been. As of October 31, 2009, the aggregate amount of outstanding Auction Rate Preferred shares redeemed by 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) ------------------------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred shares redeemed, at liquidation value $ 59,100,000 $ 64,800,000 $ 33,325,000 $ 33,200,000 $ 222,000,000 $ 75,050,000 ====================================================================================================================================
Effective May 1, 2009, auction participation fees with respect to auctions that have failed have been reduced from 25 bps (annualized) to 15 bps (annualized). All auction participants have signed new agreements incorporating this change. Nuveen Investments 87 | Notes to | Financial Statements (continued) Variable Rate Demand Preferred Shares On August 7, 2008, Dividend Advantage 2 (NXZ) issued 1,960 Series 1 Variable Rate Demand Preferred shares, $100,000 liquidation value per share, in a privately negotiated offering. Proceeds of this offering along with the proceeds from the Fund's creation of tender option bonds (TOBs), also known as "floaters" or floating rate obligations, were used to redeem all of the Fund's outstanding Auction Rate Preferred shares totaling $222,000,000. The Variable Rate Demand Preferred shares were offered to institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, have a maturity date of August 1, 2038 and include a liquidity feature that allows the Variable Rate Demand Preferred shareholders to have their shares purchased by the liquidity provider in the event that sell orders are not matched with purchase orders in a remarketing. Dividends on the Variable Rate Demand Preferred shares (which are treated as interest payments for financial reporting purposes) are set weekly at a rate established by a remarketing agent; therefore, the liquidation value of the Variable Rate Demand Preferred shares approximates fair value. Subject to certain conditions, Variable Rate Demand Preferred shares may be redeemed, in whole or in part, at any time at the option of the Fund. The Fund may also redeem certain of the Variable Rate Demand Preferred shares if the Fund fails to maintain certain asset coverage requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. Dividend Advantage 2 (NXZ) had all $196,000,000 of its Variable Rate Demand Preferred shares outstanding during the fiscal year ended October 31, 2009, with an annualized interest rate of .73%. For financial reporting purposes only, the liquidation value of Variable Rate Demand Preferred shares is recorded as a liability on the Statement of Assets and Liabilities and the dividends paid on the Variable Rate Demand Preferred shares are included as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. In addition to interest expense, the Fund also paid a per annum liquidity fee which is recognized as "Liquidity fees" on the Statement of Operations. Inverse Floating Rate Securities Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond's par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an "inverse floater") that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond's downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond's value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond. A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an "externally-deposited inverse floater"), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a "self-deposited inverse floater"). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as "(IF) - Inverse floating rate investment." An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as "(UB) - Underlying bond of an inverse floating rate trust reflected as a financing transaction," with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in "Investment Income" the entire earnings of the underlying bond and recognizes the related interest paid to the holders of the short-term floating rate certificates as "Interest expense and amortization of offering costs" on the Statement of Operations. During the fiscal year ended October 31, 2009, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters. Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") (such agreements referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund's potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund's inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as "Unrealized depreciation on Recourse Trusts" on the Statement of Assets and Liabilities. 88 Nuveen Investments At October 31, 2009, each Fund's maximum exposure to externally-deposited Recourse Trusts is as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) ------------------------------------------------------------------------------------------------------------------------------------ Maximum exposure to Recourse Trusts $ 7,500,000 $ 11,250,000 $ 7,500,000 $ 11,250,000 $ 11,250,000 $ -- ====================================================================================================================================
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended October 31, 2009, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) ------------------------------------------------------------------------------------------------------------------------------------ Average floating rate obligations outstanding $ 43,509,819 $ 58,897,682 $ 45,976,096 $ 53,617,767 $ 24,862,486 $ 63,958,171 Average annual interest rate and fees 0.98% 0.88% 0.91% 0.85% 0.94% 0.93% ====================================================================================================================================
Futures Contracts Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives and is authorized to invest in futures contracts in attempt to manage such risk. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the "initial margin." Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as "Deposits with brokers for open futures contracts" on the Statement of Assets and Liabilities. Subsequent payments ("variation margin") are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. Variation margin is recognized as a receivable or payable for "Variation margin on futures contracts" on the Statement of Assets and Liabilities, when applicable. During the period the futures contract is open, changes in the value of the contract are recorded as an unrealized gain or loss by "marking-to-market" on a daily basis to reflect the changes in market value of the contract and is recognized as "Change in net unrealized appreciation (depreciation) of futures contracts" on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into and is recognized as "Net realized gain (loss) from futures contracts" on the Statement of Operations. Risks of investments in futures contracts include the possible adverse movement of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices. Dividend Advantage 3 (NZF) invested in futures contracts during the fiscal year ended October 31, 2009. The average number of futures contracts outstanding during the fiscal year ended October 31, 2009, was as follows: DIVIDEND ADVANTAGE 3 (NZF) -------------------------------------------------------------------------------- Average number of futures contracts outstanding 31* ================================================================================ * The average number of contracts is calculated based on the outstanding contracts at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year. The Fund was not invested in futures contracts at the end of the current fiscal year. Refer to Footnote 3 - Derivative Instruments and Hedging Activities for further details on futures contract activity. Forward Swap Contracts Each Fund is authorized to enter into forward interest rate swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality). Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Each Fund's use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund's interest rate sensitivity with that of the broader municipal market. Forward interest rate swap transactions involve each Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed 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 swap contract and the termination date of the swap (which is akin to a bond's maturity). The value of the Fund's swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap's termination date increases or decreases. Forward interest rate swap contracts are valued daily. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as "Unrealized appreciation or depreciation on forward swaps" with the change during the fiscal period recognized on the Statement of Operations as "Change in net unrealized appreciation (depreciation) of forward swaps." Nuveen Investments 89 | Notes to | Financial Statements (continued) The Funds may terminate a swap contract prior to the effective date, at which point a realized gain or loss is 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. Net realized gains and losses during the fiscal period are recognized on the Statement of Operations as "Net realized gain (loss) from forward swaps." 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. The Funds did not invest in forward interest rate swap transactions during the fiscal year ended October 31, 2009. Market and Counterparty Credit Risk In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions. The extent of each Fund's exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange's clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default. Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Nuveen Asset Management (the "Adviser"), a wholly-owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, 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 valuations fluctuate, either up or down, by at least the predetermined threshold amount. Zero Coupon Securities Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolios of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. Offering Costs Costs incurred by Dividend Advantage 2 (NXZ) in connection with its offering of the Variable Rate Demand Preferred shares ($2,270,000) were recorded as a deferred charge which will be amortized over the 30-year life of the shares and are included as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank. Indemnifications Under the Funds' organizational documents, their Officers and Directors/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 US 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. 2. FAIR VALUE MEASUREMENTS During the current fiscal period, the Funds adopted authoritative guidance under GAAP on determining fair value measurements. This guidance defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosure about fair value measurements. In determining the value of each Fund's investments various inputs are used. These inputs are summarized in the three broad levels listed below: Level 1 - Quoted prices in active markets for identical securities. Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). 90 Nuveen Investments Level 3 - Significant unobservable inputs (including management's assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund's fair value measurements as of October 31, 2009:
PERFORMANCE PLUS (NPP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 1,311,136,145 $ -- $ 1,311,136,145 ================================================================================================= MUNICIPAL ADVANTAGE (NMA) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 948,796,834 $ -- $ 948,796,834 ================================================================================================= MARKET OPPORTUNITY (NMO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 997,616,000 $ -- $ 997,616,000 ================================================================================================= DIVIDEND ADVANTAGE (NAD) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 835,953,168 $ -- $ 835,953,168 Investment Companies 510,013 -- -- 510,013 ------------------------------------------------------------------------------------------------- Total $ 510,013 $ 835,953,168 $ -- $ 836,463,181 ================================================================================================= DIVIDEND ADVANTAGE 2 (NXZ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ================================================================================================= Investments: Municipal Bonds $ -- $ 636,448,449 $ -- $ 636,448,449 ================================================================================================= DIVIDEND ADVANTAGE 3 (NZF) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 863,883,204 $ -- $ 863,883,204 Investment Companies 3,269,535 -- -- 3,269,535 Short-Term Investments -- 2,325,000 -- 2,325,000 ------------------------------------------------------------------------------------------------- Total $ 3,269,535 $ 866,208,204 $ -- $ 869,477,739 =================================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES During the current fiscal period, the Funds adopted amendments to authoritative guidance under GAAP on disclosures about derivative instruments and hedging activities. This guidance is intended to enhance financial statement disclosures for derivative instruments and hedging activities and enable investors to better understand: a) how and why a fund uses derivative instruments; b) how derivative instruments are accounted for; and c) how derivative instruments affect a fund's financial position, results of operations and cash flows, if any. The Funds record derivative instruments at fair value with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds' investments in derivatives may represent economic hedges, under this guidance they are considered to be non-hedge transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolio of Investments, Financial Statements and Footnote 1 - General Information and Significant Accounting Policies. The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal year ended October 31, 2009, on derivative instruments, as well as the primary risk exposure associated with each. Dividend Advantage 3 (NZF) invested in derivative instruments during the fiscal year ended October 31, 2009. None of the Funds had derivative contracts outstanding at October 31, 2009.
DIVIDEND NET REALIZED GAIN (LOSS) FROM FUTURES CONTRACTS ADVANTAGE 3 (NZF) -------------------------------------------------------------------------------------------------- RISK EXPOSURE Interest Rate $ 1,331,299 ==================================================================================================
DIVIDEND CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES CONTRACTS ADVANTAGE 3 (NZF) -------------------------------------------------------------------------------------------------- RISK EXPOSURE Interest Rate $ 679,241 ==================================================================================================
Nuveen Investments 91 | Notes to | Financial Statements (continued) 4. FUND SHARES Common Shares Since the inception of the Funds' repurchase program, the Funds have not repurchased any of their outstanding common shares. Transactions in Common shares were as follows:
MUNICIPAL MARKET PERFORMANCE PLUS (NPP) ADVANTAGE (NMA) OPPORTUNITY (NMO) -------------------------------- -------------------------------- --------------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions -- -- 20,548 -- -- -- ====================================================================================================================================
DIVIDEND DIVIDEND DIVIDEND ADVANTAGE (NAD) ADVANTAGE 2 (NXZ) ADVANTAGE 3 (NZF) -------------------------------- -------------------------------- --------------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions -- -- 10,026 29,827 -- -- ====================================================================================================================================
Preferred Shares Transactions in Auction Rate Preferred shares were as follows:
PERFORMANCE PLUS (NPP) MUNICIPAL ADVANTAGE (NMA) ---------------------------------------------- ----------------------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred shares redeemed: Series M 165 $ 4,125,000 328 $ 8,200,000 406 $ 10,150,000 137 $ 3,425,000 Series T 165 4,125,000 329 8,225,000 406 10,150,000 137 3,425,000 Series W 166 4,150,000 329 8,225,000 407 10,175,000 137 3,425,000 Series TH 130 3,250,000 260 6,500,000 313 7,825,000 106 2,650,000 Series F 164 4,100,000 328 8,200,000 406 10,150,000 137 3,425,000 ------------------------------------------------------------------------------------------------------------------------------------ Total 790 $ 19,750,000 1,574 $ 39,350,000 1,938 $ 48,450,000 654 $ 16,350,000 ====================================================================================================================================
MARKET OPPORTUNITY (NMO) DIVIDEND ADVANTAGE (NAD) ---------------------------------------------- ----------------------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred shares redeemed: Series M 158 $ 3,950,000 193 $ 4,825,000 68 $ 1,700,000 382 $ 9,550,000 Series T 159 3,975,000 193 4,825,000 68 1,700,000 383 9,575,000 Series W 126 3,150,000 154 3,850,000 -- -- -- -- Series TH -- -- -- -- 64 1,600,000 363 9,075,000 Series F 157 3,925,000 193 4,825,000 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total 600 $ 15,000,000 733 $ 18,325,000 200 $ 5,000,000 1,128 $ 28,200,000 ====================================================================================================================================
92 Nuveen Investments
DIVIDEND ADVANTAGE 2 (NXZ) DIVIDEND ADVANTAGE 3 (NZF) ---------------------------------------------- ----------------------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred shares redeemed: Series M N/A N/A 3,000 $ 75,000,000 -- $ -- -- $ -- Series T N/A N/A 3,000 75,000,000 -- -- -- -- Series W N/A N/A -- -- 451 11,275,000 550 13,750,000 Series TH N/A N/A -- -- 451 11,275,000 550 13,750,000 Series F N/A N/A 2,880 72,000,000 451 11,275,000 549 13,725,000 ------------------------------------------------------------------------------------------------------------------------------------ Total 8,880 $ 222,000,000 1,353 $ 33,825,000 1,649 $ 41,225,000 ====================================================================================================================================
N/A - All $222,000,000 of the Fund's Auction Rate Preferred shares were redeemed during the fiscal year ended October 31, 2008. Transactions in Variable Rate Demand Preferred shares were as follows:
DIVIDEND ADVANTAGE 2 (NXZ) ----------------------------------------------- YEAR YEAR ENDED ENDED 10/31/09 10/31/08 ----------------------------------------------- SHARES AMOUNT SHARES AMOUNT ----------------------------------------------------------------------------------- Variable Rate Demand Preferred shares issued: Series 1 -- $ -- 1,960 $ 196,000,000 ===================================================================================
5. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the fiscal year ended October 31, 2009, were as follows:
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) ------------------------------------------------------------------------------------------------------------------------------------ Purchases $ 78,074,792 $ 82,196,025 $ 99,549,963 $ 79,636,661 $ 33,168,991 $ 18,387,465 Sales and maturities 96,603,731 111,091,760 118,781,903 74,910,841 13,459,816 19,438,983 ====================================================================================================================================
6. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At October 31, 2009, 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 $ 1,246,688,313 $ 887,112,184 $ 962,582,230 $ 791,061,909 $ 604,070,661 $ 803,762,493 ====================================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at October 31, 2009, 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 $ 69,322,967 $ 37,889,272 $ 46,796,282 $ 39,580,694 $ 35,816,524 $ 30,100,078 Depreciation (47,817,816) (43,913,869) (60,507,164) (45,786,360) (30,106,102) (40,241,415) ------------------------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation (depreciation)of investments $ 21,505,151 $ (6,024,597) $ (13,710,882) $ (6,205,666) $ 5,710,422 $ (10,141,337) ====================================================================================================================================
Nuveen Investments 93 | Notes to | Financial Statements (continued) The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at October 31, 2009, the Funds' 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 * $ 14,778,549 $ 10,307,023 $ 11,839,667 $ 8,600,550 $ 4,767,927 $ 9,202,532 Undistributed net ordinary income ** 22,973 63,544 665 -- 431,904 830,858 Undistributed net long-term capital gains 863,865 3,011,399 -- -- -- 1,900,388 ====================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on October 1, 2009, paid on November 2, 2009. ** 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' tax years ended October 31, 2009 and October 31, 2008, 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 2009 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) ------------------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income *** $ 50,061,453 $ 38,441,112 $ 39,112,569 $ 34,327,038 $ 27,368,520 $ 35,861,517 Distributions from net ordinary income ** 60,857 126,563 -- -- -- 312,544 Distributions from net long-term capital gains **** -- -- -- -- -- -- ====================================================================================================================================
PERFORMANCE MUNICIPAL MARKET DIVIDEND DIVIDEND DIVIDEND PLUS ADVANTAGE OPPORTUNITY ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 2008 (NPP) (NMA) (NMO) (NAD) (NXZ) (NZF) ------------------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income $ 58,938,252 $ 46,196,128 $ 47,134,373 $ 40,676,616 $ 33,466,437 $ 42,267,778 Distributions from net ordinary income ** -- -- -- 171,088 -- -- Distributions from net long-term capital gains -- 1,389,990 -- -- -- -- ====================================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. *** The Funds hereby designate these amounts paid during the fiscal year ended October 31, 2009, as Exempt Interest Dividends. **** The Funds designated as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended October 31, 2009. At October 31, 2009, the Funds' tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows: MARKET DIVIDEND DIVIDEND OPPORTUNITY ADVANTAGE ADVANTAGE 2 (NMO) (NAD) (NXZ) -------------------------------------------------------------------------------- Expiration: October 31, 2011 $ 4,216,771 $ 4,594,300 $ -- October 31, 2012 973,824 -- -- October 31, 2013 -- 104,762 -- October 31, 2014 3,141,529 -- 1,425,745 October 31, 2015 1,902,879 -- 961,027 October 31, 2016 1,398,166 -- -- October 31, 2017 -- 424,278 -- -------------------------------------------------------------------------------- Total $ 11,633,169 $ 5,123,340 $ 2,386,772 ================================================================================ 7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser, and a specific fund-level component, based only on the amount of assets within each individual Fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. 94 Nuveen Investments The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets of each Fund as follows: PERFORMANCE PLUS (NPP) MUNICIPAL ADVANTAGE (NMA) MARKET OPPORTUNITY (NMO) AVERAGE DAILY NET ASSETS(1) 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(1) 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 net assets managed as stated in the following table. As of October 31, 2009, the complex-level fee rate was .1907%. The complex-level fee schedule is as follows: COMPLEX-LEVEL NET ASSET EFFECTIVE RATE AT BREAKPOINT LEVEL(1) BREAKPOINT LEVEL -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 ================================================================================ (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate daily managed net assets of all Nuveen funds, with such daily managed net assets defined separately for each fund in its management agreement, but excluding assets attributable to investments in other Nuveen funds. For the complex-level and fund-level fee components, daily managed net assets include assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds use of preferred stock and borrowings and investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by the TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser to limit the amount of such assets for determining managed net assets in certain circumstances. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Directors/Trustees who are affiliated with the Adviser or to its 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. Nuveen Investments 95 | Notes to | Financial Statements (continued) 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, 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, 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, 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. 8. NEW ACCOUNTING STANDARDS Accounting for Transfers of Financial Assets During June 2009, the FASB issued changes to the authoritative guidance under GAAP on accounting for transfers of financial assets. The objective of this guidance is to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor's continuing involvement, if any, in transferred financial assets. This guidance is effective as of the beginning of each reporting entity's first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period and for interim and annual reporting periods thereafter. Earlier application is prohibited. The recognition and measurement provisions of this guidance must be applied to transfers occurring on or after the effective date. Additionally, the disclosure provisions of this guidance should be applied to transfers that occurred both before and after the effective date of this guidance. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and disclosures, if any. 96 Nuveen Investments 9. SUBSEQUENT EVENTS Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on December 1, 2009, to shareholders of record on November 15, 2009, 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 $ .0720 $ .0760 $ .0740 $ .0740 $ .0780 $ .0745 ====================================================================================================================================
Evaluation Date In May 2009, the FASB issued changes to authoritative guidance under GAAP for subsequent events. This guidance requires an entity to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet. This guidance is intended to establish general standards of accounting and for disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. This guidance requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date - that is, whether that date represents the date the financial statements were issued or were available to be issued. This guidance is effective for interim and annual periods ending after June 15, 2009. The Funds have performed an evaluation of subsequent events through December 28, 2009, which is the date the financial statements were issued. Nuveen Investments 97 | Financial | Highlights Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS -------------------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM INVESTMENT CAPITAL BEGINNING INCOME TO GAINS TO COMMON NET AUCTION RATE AUCTION RATE 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: 2009 $ 12.69 $ 1.03 $ 1.65 $ (.06) $ -- $ 2.62 2008 15.22 1.02 (2.56) (.29) -- (1.83) 2007 15.78 .99 (.47) (.27) (.01) .24 2006 15.51 1.00 .38 (.25) -- 1.13 2005 15.87 1.02 (.26) (.16) -- .60 MUNICIPAL ADVANTAGE (NMA) ----------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 12.12 1.10 1.76 (.06) -- 2.80 2008 15.20 1.08 (3.06) (.30) (.01) (2.29) 2007 15.88 1.07 (.63) (.29) -- .15 2006 15.70 1.08 .27 (.26) -- 1.09 2005 16.02 1.09 (.24) (.16) -- .69 ======================================================================================================================= LESS DISTRIBUTIONS --------------------------------------- NET INVESTMENT CAPITAL ENDING INCOME TO GAINS TO COMMON COMMON COMMON SHARE ENDING SHARE- SHARE- NET ASSET MARKET HOLDERS HOLDERS TOTAL VALUE VALUE ---------------------------------------------------------------------------------------------------- PERFORMANCE PLUS (NPP) ---------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ (.79) $ -- $ (.79) $ 14.52 $ 13.48 2008 (.70) -- (.70) 12.69 11.50 2007 (.75) (.05) (.80) 15.22 13.59 2006 (.84) (.02) (.86) 15.78 15.09 2005 (.94) (.02) (.96) 15.51 14.43 MUNICIPAL ADVANTAGE (NMA) ---------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 (.84) -- (.84) 14.08 13.41 2008 (.77) (.02) (.79) 12.12 11.41 2007 (.83) -- (.83) 15.20 13.95 2006 (.90) (.01) (.91) 15.88 15.85 2005 (1.00) (.01) (1.01) 15.70 15.19 ====================================================================================================
AUCTION RATE 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: 2009 $ 419,900 $ 25,000 $ 76,790 2008 439,650 25,000 68,244 2007 479,000 25,000 72,603 2006 479,000 25,000 74,333 2005 479,000 25,000 73,515 MUNICIPAL ADVANTAGE (NMA) --------------------------------------------------------------------------------------- Year Ended 10/31: 2009 293,200 25,000 76,911 2008 341,650 25,000 63,314 2007 358,000 25,000 70,866 2006 358,000 25,000 72,743 2005 358,000 25,000 72,184 =======================================================================================
98 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT ---------------------- ----------------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES (000) I NTEREST++(a) INTEREST++ INCOME++ ------------------------------------------------------------------------------------------------------------------------- PERFORMANCE PLUS (NPP) ------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 24.78% 21.20% $ 869,873 1.23% 1.18% 7.59% 2008 (10.71) (12.49) 760,496 1.25 1.17 6.96 2007 (4.97) 1.53 912,066 1.16 1.14 6.38 2006 10.78 7.50 945,222 1.15 1.15 6.44 2005 3.02 3.83 929,544 1.15 1.15 6.45 MUNICIPAL ADVANTAGE (NMA) ------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 25.70% 23.89% 608,813 1.31 1.22 8.51 2008 (13.16) (15.65) 523,602 1.38 1.21 7.50 2007 (7.08) 1.06 656,806 1.40 1.17 6.87 2006 10.68 7.16 683,675 1.18 1.18 6.92 2005 3.29 4.42 675,678 1.17 1.17 6.81 ========================================================================================================================= RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT** --------------------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++ INCOME++ RATE --------------------------------------------------------------------------------------------------- PERFORMANCE PLUS (NPP) --------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 1.23% 1.18% 7.59% 6% 2008 1.25 1.17 6.96 9 2007 1.16 1.14 6.38 6 2006 1.15 1.15 6.44 9 2005 1.15 1.15 6.45 6 MUNICIPAL ADVANTAGE (NMA) --------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 1.31 1.22 8.51 9 2008 1.38 1.21 7.50 13 2007 1.40 1.17 6.87 10 2006 1.18 1.18 6.92 11 2005 1.17 1.17 6.81 8 ===================================================================================================
* Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After expense reimbursement from Adviser, where applicable. Expense ratios do not reflect the reduction of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares. (a) The expense ratios in the above table reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, as described in Footnote 1 - Inverse Floating Rate Securities. See accompanying notes to financial statements. Nuveen Investments 99 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS ---------------------------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM INVESTMENT CAPITAL BEGINNING INCOME TO GAINS TO COMMON NET AUCTION RATE AUCTION RATE SHARE NET REALIZED/ PREFERRED PREFERRED NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL ----------------------------------------------------------------------------------------------------------------------------------- MARKET OPPORTUNITY (NMO) ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ 12.23 $ 1.10 $ 1.13 $ (.06) $ -- $ 2.17 2008 14.83 1.03 (2.59) (.31) -- (1.87) 2007 15.41 1.04 (.56) (.30) -- .18 2006 15.14 1.02 .34 (.26) -- 1.10 2005 15.48 1.03 (.29) (.16) -- .58 DIVIDEND ADVANTAGE (NAD) ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 11.77 1.07 1.93 (.05) -- 2.95 2008 14.90 1.05 (3.14) (.27) -- (2.36) 2007 15.54 1.04 (.60) (.27) -- .17 2006 15.28 1.04 .32 (.24) -- 1.12 2005 15.62 1.06 (.25) (.15) -- .66 =================================================================================================================================== LESS DISTRIBUTIONS ----------------------------------------- NET INVESTMENT CAPITAL ENDING INCOME TO GAINS TO COMMON COMMON COMMON SHARE ENDING SHARE- SHARE- NET ASSET MARKET HOLDERS HOLDERS TOTAL VALUE VALUE ------------------------------------------------------------------------------------------------------ MARKET OPPORTUNITY (NMO) ------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 $ (.81) $ -- $ (.81) $ 13.59 $ 13.32 2008 (.73) -- (.73) 12.23 11.52 2007 (.76) -- (.76) 14.83 13.53 2006 (.83) -- (.83) 15.41 15.00 2005 (.92) -- (.92) 15.14 14.19 DIVIDEND ADVANTAGE (NAD) ------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 (.83) -- (.83) 13.89 12.89 2008 (.77) -- (.77) 11.77 10.72 2007 (.81) -- (.81) 14.90 13.63 2006 (.86) -- (.86) 15.54 15.30 2005 (1.00) -- (1.00) 15.28 14.58 ======================================================================================================
AUCTION RATE PREFERRED SHARES AT END OF PERIOD --------------------------------------------------- AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE ----------------------------------------------------------------------------------- MARKET OPPORTUNITY (NMO) ----------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ 346,675 $ 25,000 $ 69,661 2008 361,675 25,000 63,525 2007 380,000 25,000 69,446 2006 380,000 25,000 71,155 2005 380,000 25,000 70,374 DIVIDEND ADVANTAGE (NAD) ----------------------------------------------------------------------------------- Year Ended 10/31: 2009 261,800 25,000 77,095 2008 266,800 25,000 68,343 2007 295,000 25,000 74,618 2006 295,000 25,000 76,722 2005 295,000 25,000 75,838 ===================================================================================
100 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT ------------------------- --------------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++ ------------------------------------------------------------------------------------------------------------------------------ MARKET OPPORTUNITY (NMO) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 23.67% 18.30% $ 619,319 1.32% 1.25% 8.58% 2008 (9.87) (13.07) 557,346 1.36 1.23 7.33 2007 (5.00) 1.20 675,577 1.38 1.19 6.87 2006 11.92 7.49 701,559 1.19 1.19 6.73 2005 4.70 3.78 689,682 1.19 1.19 6.66 DIVIDEND ADVANTAGE (NAD) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 28.86 25.78 545,534 1.26 1.17 8.38 2008 (16.46) (16.42) 462,554 1.36 1.15 7.33 2007 (5.96) 1.10 585,496 1.24 1.13 6.60 2006 11.19 7.59 610,316 1.12 1.12 6.54 2005 1.77 4.27 599,887 1.17 1.17 6.48 ============================================================================================================================== RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT** --------------------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++ INCOME++ RATE ---------------------------------------------------------------------------------------------------- MARKET OPPORTUNITY (NMO) ---------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 1.32% 1.25% 8.58% 10% 2008 1.36 1.23 7.33 8 2007 1.38 1.19 6.87 5 2006 1.19 1.19 6.73 14 2005 1.19 1.19 6.66 7 DIVIDEND ADVANTAGE (NAD) ---------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 1.21 1.12 8.43 9 2008 1.22 1.02 7.46 11 2007 1.03 .92 6.81 11 2006 .85 .85 6.81 8 2005 .81 .81 6.83 11 ====================================================================================================
* Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After expense reimbursement from Adviser, where applicable. Expense ratios do not reflect the reduction of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares. (a) The expense ratios in the above table reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, as described in Footnote 1 - Inverse Floating Rate Securities. See accompanying notes to financial statements. Nuveen Investments 101 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS ---------------------------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM INVESTMENT CAPITAL BEGINNING INCOME TO GAINS TO COMMON NET AUCTION RATE AUCTION RATE SHARE NET REALIZED/ PREFERRED PREFERRED NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL ---------------------------------------------------------------------------------------------------------------------------------- DIVIDEND ADVANTAGE 2 (NXZ) ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ 12.71 $ 1.04 $ 1.59 $ -- $ -- $ 2.63 2008 15.55 1.05 (2.81) (.20) -- (1.96) 2007 16.02 1.13 (.43) (.27) -- .43 2006 15.80 1.12 .32 (.24) -- 1.20 2005 15.63 1.13 .22 (.15) -- 1.20 DIVIDEND ADVANTAGE 3 (NZF) ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 12.10 1.08 1.91 (.05) -- 2.94 2008 15.03 1.06 (2.95) (.27) -- (2.16) 2007 15.54 1.07 (.44) (.27) (.01) .35 2006 15.32 1.07 .29 (.24) -- 1.12 2005 15.36 1.06 .01 (.15) -- .92 ================================================================================================================================== LESS DISTRIBUTIONS --------------------------------------- NET INVESTMENT CAPITAL ENDING INCOME TO GAINS TO COMMON COMMON COMMON SHARE ENDING SHARE- SHARE- NET ASSET MARKET HOLDERS HOLDERS TOTAL VALUE VALUE ----------------------------------------------------------------------------------------------------- DIVIDEND ADVANTAGE 2 (NXZ) ----------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ (.89) $ -- $ (.89) $ 14.45 $ 14.14 2008 (.88) -- (.88) 12.71 12.35 2007 (.90) -- (.90) 15.55 15.48 2006 (.98) -- (.98) 16.02 16.50 2005 (1.03) -- (1.03) 15.80 15.64 DIVIDEND ADVANTAGE 3 (NZF) ----------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 (.85) -- (.85) 14.19 13.38 2008 (.77) -- (.77) 12.10 10.72 2007 (.84) (.02) (.86) 15.03 13.85 2006 (.90) -- (.90) 15.54 15.88 2005 (.96) -- (.96) 15.32 14.41 =====================================================================================================
AUCTION RATE PREFERRED SHARES VARIABLE RATE DEMAND PREFERRED SHARES AT END OF PERIOD AT END OF PERIOD --------------------------------------- ---------------------------------------- AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE ------------------------------------------------------------------------------------------------------------------ DIVIDEND ADVANTAGE 2 (NXZ) ------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 $ -- $ -- $ -- $ 196,000 $ 100,000 $ 316,966 2008 -- -- -- 196,000 100,000 290,785 2007 222,000 25,000 76,463 -- -- -- 2006 222,000 25,000 77,949 -- -- -- 2005 222,000 25,000 77,124 -- -- -- DIVIDEND ADVANTAGE 3 (NZF) ------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 236,950 25,000 85,465 -- -- -- 2008 270,775 25,000 70,108 -- -- -- 2007 312,000 25,000 73,630 -- -- -- 2006 312,000 25,000 75,227 -- -- -- 2005 312,000 25,000 74,468 -- -- -- ==================================================================================================================
102 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ----------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT ----------------------- ------------------------------------------ BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++ ---------------------------------------------------------------------------------------------------------------------- DIVIDEND ADVANTAGE 2 (NXZ) ---------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 22.63% 21.41% $ 425,253 1.91% 1.47% 7.59% 2008 (15.21) (13.23) 373,940 1.71 1.22 6.82 2007 (.78) 2.76 456,992 1.25 1.11 6.83 2006 11.95 7.86 470,189 1.11 1.11 6.70 2005 8.58 7.83 462,862 1.12 1.12 6.66 DIVIDEND ADVANTAGE 3 (NZF) ---------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 33.89% 25.08% 573,088 1.26 1.15 7.98 2008 (17.85) (14.99) 488,561 1.34 1.15 7.08 2007 (7.72) 2.31 606,908 1.32 1.13 6.65 2006 16.90 7.57 626,836 1.13 1.13 6.51 2005 6.11 6.09 617,358 1.13 1.13 6.39 ====================================================================================================================== RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT** ---------------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++ INCOME++ RATE -------------------------------------------------------------------------------------------- DIVIDEND ADVANTAGE 2 (NXZ) -------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 1.73% 1.29% 7.77% 2% 2008 1.45 .96 7.08 10 2007 .93 .79 7.16 5 2006 .72 .72 7.09 5 2005 .68 .68 7.11 2 DIVIDEND ADVANTAGE 3 (NZF) -------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 1.04 0.92 8.20 2 2008 1.04 .85 7.37 7 2007 .94 .76 7.02 14 2006 .68 .68 6.96 9 2005 .69 .69 6.83 3 ============================================================================================
* Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After expense reimbursement from Adviser, where applicable. Expense ratios do not reflect the reduction of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares or Variable Rate Demand Preferred shares, where applicable. (a) The expense ratios in the above table reflect, among other things, payments to Variable Rate Demand Preferred shareholders and the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, as described in Footnote 1 - Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively. See accompanying notes to financial statements. Nuveen Investments 103 Board Members & Officers The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not "interested" persons of the Funds (referred to herein as "independent board members") has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: o ROBERT P. BREMNER Private Investor and Management 8/22/40 Chairman of Consultant; Treasurer and Director, 333 W. Wacker Drive the Board 1997 198 Humanities Council of Washington Chicago, IL 60606 and Board Member D.C. o JACK B. EVANS President, The Hall-Perrine 10/22/48 Foundation, a private philanthropic 333 W. Wacker Drive Board Member 1999 198 corporation (since 1996); Director Chicago, IL 60606 and Chairman, United Fire Group, a publicly held company; President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College and the Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. o WILLIAM C. HUNTER Dean, Tippie College of Business, 3/6/48 University of Iowa (since 2006); 333 W. Wacker Drive Board Member 2004 198 Director (since 2004) of Xerox Chicago, IL 60606 Corporation; Director (since 2005), Beta Gamma Sigma International Honor Society; formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director, SS&C Technologies, Inc. (May 2005-October 2005); formerly, Director (1997-2007), Credit Research Center at Georgetown University. o DAVID J. KUNDERT Director, Northwestern Mutual Wealth 10/28/42 Management Company; retired (since 333 W. Wacker Drive Board Member 2005 198 2004) as Chairman, JPMorgan Fleming Chicago, IL 60606 Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Investment Committee, Greater Milwaukee Foundation. o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine 9/24/44 Partners Ltd., a real estate 333 W. Wacker Drive Board Member 1997 198 investment company; formerly, Senior Chicago, IL 60606 Partner and Chief Operating Officer (retired, 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank; formerly, Director, Dayton Development Coalition.
104 Nuveen Investments
NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: o JUDITH M. STOCKDALE Executive Director, Gaylord and 12/29/47 Dorothy Donnelley Foundation (since 333 W. Wacker Drive Board Member 1997 198 1994); prior thereto, Executive Chicago, IL 60606 Director, Great Lakes Protection Fund (from 1990 to 1994). o CAROLE E. STONE Director, Chicago Board Options 6/28/47 Exchange (since 2006); Director, C2 333 W. Wacker Drive Board Member 2007 198 Options Exchange, Incorporated Chicago, IL 60606 (since 2009); Commissioner, New York State Commission on Public Authority Reform (since 2005); formerly, Chair, New York Racing Association Oversight Board (2005-2007). o TERENCE J. TOTH Director, Legal & General Investment 9/29/59 Management America, Inc. (since 333 W. Wacker Drive Board Member 2008 198 2008); Managing Partner, Musso Chicago, IL 60606 Capital Management (since 2008); formerly, CEO and President, Northern Trust Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2004-2007); prior thereto, various positions with Northern Trust Company (since 1994); Member: Goodman Theatre Board (since 2004), Chicago Fellowship Boards (since 2005), University of Illinois Leadership Council Board (since 2007) and Catalyst Schools of Chicago Board (since 2008); formerly, Member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). INTERESTED BOARD MEMBER: o JOHN P. AMBOIAN(2) Chief Executive Officer (since July 6/14/61 2007) and Director (since 1999) of 333 W. Wacker Drive Board Member 2008 198 Nuveen Investments, Inc.; Chief Chicago, IL 60606 Executive Officer (since 2007) of Nuveen Asset Management, Nuveen Investments Advisors, Inc. formerly, President (1999-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3)
Nuveen Investments 105 Board Members & Officers (continued)
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o GIFFORD R. ZIMMERMAN Managing Director (since 2002), 9/9/56 Chief Assistant Secretary and Associate 333 W. Wacker Drive Administrative 1988 198 General Counsel of Nuveen Chicago, IL 60606 Officer Investments, LLC; Managing Director, Associate General Counsel and Assistant Secretary, of Nuveen Asset Management (since 2002) and of Symphony Asset Management LLC, (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors, LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007); Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; formerly, Managing Director (2002-2004), General Counsel (1998-2004) and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Chartered Financial Analyst. o WILLIAM ADAMS IV Executive Vice President of Nuveen 6/9/55 Investments, Inc.; Executive Vice 333 W. Wacker Drive Vice President 2007 123 President, U.S. Structured Products Chicago, IL 60606 of Nuveen Investments, LLC, (since 1999), prior thereto, Managing Director of Structured Investments. o MARK J.P. ANSON President and Executive Director of 6/10/59 Nuveen Investments, Inc. (since 333 W. Wacker Drive Vice President 2009 198 2007); President of Nuveen Chicago, IL 60606 Investments Institutional Services Group LLC (since 2007); previously, Chief Executive Officer of the British Telecom Pension Scheme (2006-2007) and Chief Investment Officer of Calpers (1999-2006); PhD, Chartered Financial Analyst, Chartered Alternative Investment Analyst, Certified Public Accountant, Certified Management Accountant and Certified Internal Auditor. o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), 1/11/62 previously, Vice President 333 W. Wacker Drive Vice President 2007 123 (1993-2004) of Nuveen Investments, Chicago, IL 60606 LLC. o NIZIDA ARRIAGA Vice President (since 2007) of 6/1/68 Nuveen Investments, LLC; previously, 333 W. Wacker Drive Vice President 2009 198 Portfolio Manager, Allstate Chicago, IL 60606 Investments, LLC (1996-2006); Chartered Financial Analyst. o MICHAEL T. ATKINSON Vice President (since 2002) of 2/3/66 Vice President Nuveen Investments, LLC.; Vice 333 W. Wacker Drive and Assistant 2000 198 President of Nuveen Asset Management Chicago, IL 60606 Secretary (since 2005). o MARGO L. COOK Executive Vice President (since Oct 4/11/64 2008) of Nuveen Investments, Inc.; 333 W. Wacker Drive Vice President 2009 198 previously, Head of Institutional Chicago, IL 60606 Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Mgt (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. o LORNA C. FERGUSON Managing Director (since 2004) of 10/24/45 Nuveen Investments, LLC; Managing 333 W. Wacker Drive Vice President 1998 198 Director (since 2005) of Nuveen Chicago, IL 60606 Asset Management; Managing Director (2004-2005), of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3)
106 Nuveen Investments
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o STEPHEN D. FOY Vice President (since 1993) and 5/31/54 Vice President Funds Controller (since 1998) of 333 W. Wacker Drive and Controller 1998 198 Nuveen Investments, LLC; Vice Chicago, IL 60606 President (since 2005) of Nuveen Asset Management; Certified Public Accountant. o SCOTT S. GRACE Managing Director, Corporate Finance 8/20/70 Vice President & Development, Treasurer (since 333 West Wacker Drive and Treasurer 2009 198 September 2009) of Nuveen Chicago, IL 60606 Investments, LLC, formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly. Senior Associate in Morgan Stanley's Global Financial Services Group (2000-2003); Chartered Accountant Designation. o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal 5/7/69 Fixed Income (since 2008) of Nuveen 333 W. Wacker Drive Vice President 2009 134 Asset Management; previously, Chicago, IL 60606 Chairman, President and Chief Executive Officer (2002 - 2007) of Northern Trust Global Advisors, Inc. and Chief Executive Officer (2007) of Northern Trust Global Investments Limited; Certified Public Accountant. o WALTER M. KELLY Senior Vice President (since 2008), 2/24/70 Chief Compliance Vice President (2006-2008) formerly, 333 W. Wacker Drive Officer and 2003 198 Assistant Vice President and Chicago, IL 60606 Vice President Assistant General Counsel (2003-2006) of Nuveen Investments, LLC; Vice President (since 2006) and Assistant Secretary (since 2008) of Nuveen Asset Management. o DAVID J. LAMB Senior Vice President (since 2009), 3/22/63 formerly, Vice President (2000-2009) 333 W. Wacker Drive Vice President 2000 198 of Nuveen Investments, LLC; Vice Chicago, IL 60606 President (since 2005) of Nuveen Asset Management; Certified Public Accountant. o TINA M. LAZAR Senior Vice President (since 2009), 8/27/61 formerly, Vice President of Nuveen 333 W. Wacker Drive Vice President 2002 198 Investments, LLC (1999-2009); Vice Chicago, IL 60606 President of Nuveen Asset Management (since 2005). o LARRY W. MARTIN Vice President, Assistant Secretary 7/27/51 Vice President and Assistant General Counsel of 333 W. Wacker Drive and Assistant 1988 198 Nuveen Investments, LLC; Vice Chicago, IL 60606 Secretary President (since 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); NWQ Investment Management Company, LLC (since 2002), Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management LLC (since 2006) and of Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); formerly, Vice President and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3) o KEVIN J. MCCARTHY Managing Director (since 2008), 3/26/66 Vice President formerly, Vice President 333 W. Wacker Drive and Secretary 2007 198 (2007-2008), Nuveen Investments, Chicago, IL 60606 LLC; Managing Director (since 2008), formerly, Vice President, and Assistant Secretary, Nuveen Asset Management, and Nuveen Investments Holdings, Inc.; Vice President (since 2007) and Assistant Secretary, Nuveen Investment Advisers Inc., Nuveen Investment Institutional Services Group LLC, NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management LLC, Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997- 2007).
Nuveen Investments 107 Board Members & Officers (continued)
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o JOHN V. MILLER Chief Investment Officer and 4/10/67 Managing Director (since 2007), 333 W. Wacker Drive Vice President 2007 134 formerly, Vice President (2002-2007) Chicago, IL 60606 of Nuveen Asset Management and Managing Director (since 2007), formerly Vice President (2002-2007) Nuveen Investments, LLC; Chartered Financial Analyst. o GREGORY MINO Vice President of Nuveen 1/4/71 Investments, LLC (since 2008); 333 W. Wacker Drive Vice President 2009 198 previously, Director (2004-2007) and Chicago, IL 60606 Executive Director (2007-2008) of UBS Global Asset Management; previously, Vice President (2000-2003) and Director (2003-2004) of Merrill Lynch Investment Managers; Chartered Financial Analyst. o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, 8/1/71 Vice President LLC (since 2008); Vice President and 333 W. Wacker Drive and Assistant 2008 198 Assistant Secretary, Nuveen Asset Chicago, IL 60606 Secretary Management (since 2008); prior thereto, Associate, Skadden, Arps, Slate Meagher & Flom LLP (2002-2008). o JAMES F. RUANE Vice President, Nuveen Investments, 7/3/62 Vice President LLC (since 2007); prior thereto, 333 W. Wacker Drive and Assistant 2007 198 Partner, Deloitte & Touche USA LLP Chicago, IL 60606 Secretary (2005-2007), formerly, senior tax manager (2002-2005); Certified Public Accountant. o MARK L. WINGET Vice President, Nuveen Investments, 12/21/68 Vice President LLC (since 2008); Vice President and 333 W. Wacker Drive and Assistant 2008 198 Assistant Secretary, Nuveen Asset Chicago, IL 60606 Secretary Management (since 2008); prior thereto, Counsel, Vedder Price P.C. (1997-2007).
(1) For Dividend Advantage (NAD), Dividend Advantage 2 (NXZ) and Dividend Advantage 3 (NZF), Board Members serve three year terms, except for two board members who are elected by the holders of Preferred Shares. The Board of Trustees for NAD, NXZ and NZF is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. For Performance Plus (NPP), Municipal Advantage (NMA) and Market Opportunity (NMO), the Board Members serve a one year term to serve until the next annual meeting or until their successors shall have been duly elected and qualified. The first year elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (2) Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds. (3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005. (4) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 108 Nuveen Investments Annual Investment Management Agreement Approval Process The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund's board members, including by a vote of a majority of the board members who are not parties to the advisory agreement or "interested persons" of any parties (the "Independent Board Members"), cast in person at a meeting called for the purpose of considering such approval. In connection with such approvals, the fund's board members must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May Meeting"), the Boards of Trustees or Directors (as the case may be) (each, a "Board" and each Trustee or Director, a "Board Member") of the Funds, including a majority of the Independent Board Members, considered and approved the continuation of the advisory agreements (each an "Advisory Agreement") between each Fund and Nuveen Asset Management ("NAM") for an additional one-year period. In preparation for their considerations at the May Meeting, the Board also held a separate meeting on April 21-22, 2009 (the "April Meeting"). Accordingly, the factors considered and determinations made regarding the renewals by the Independent Board Members include those made at the April Meeting. In addition, in evaluating the Advisory Agreements, the Independent Board Members reviewed a broad range of information relating to the Funds and NAM, including absolute performance, fee and expense information for the Funds as well as comparative performance, fee and expense information for a comparable peer group of funds, the performance information of recognized and/or customized benchmarks (as applicable) of the Funds, the profitability of Nuveen for its advisory activities (which includes its wholly owned subsidiaries other than Winslow Capital Management, Inc. ("Winslow Capital"), which was recently acquired in December 2008), and other information regarding the organization, personnel, and services provided by NAM. The Independent Board Members also met quarterly as well as at other times as the need arose during the year and took into account the information provided at such meetings and the knowledge gained therefrom. Prior to approving the renewal of the Advisory Agreements, the Independent Board Members reviewed the foregoing information with their independent legal counsel and with management, reviewed materials from independent legal counsel describing applicable law and their duties in reviewing advisory contracts, and met with independent legal counsel in private sessions without management present. The Independent Board Members considered the legal advice provided by independent legal counsel and relied upon their knowledge of NAM, its services and the Funds resulting from their meetings and other interactions throughout the year and their own business judgment in determining the factors to be considered in evaluating Nuveen Investments 109 Annual Investment Management Agreement Approval Process (continued) the Advisory Agreements. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund's Advisory Agreement. The Independent Board Members did not identify any single factor as all-important or controlling. The Independent Board Members' considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below. A. NATURE, EXTENT AND QUALITY OF SERVICES In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of NAM's services, including advisory services and administrative services. The Independent Board Members reviewed materials outlining, among other things, NAM's organization and business; the types of services that NAM or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line. In reviewing the services provided and the initiatives undertaken during the past year, the Independent Board Members recognized the severe market turmoil experienced in the capital markets during recent periods, including sustained periods of high volatility, credit disruption and government intervention. The Independent Board Members considered NAM's efforts, expertise and other actions taken to address matters as they arose that impacted the Funds. The Independent Board Members recognized the role of the Investment Services group which, among other things, monitors the various positions throughout the Nuveen fund complex to identify and address any systematic risks. In addition, the Capital Markets Committee of NAM provides a multi-departmental venue for developing new policies to mitigate any risks. The Independent Board Members further recognized NAM's continuous review of the Nuveen funds' investment strategies and mandates in seeking to continue to refine and improve the investment process for the funds, particularly in light of market conditions. With respect to closed-end funds that issued auction rate preferred shares ("ARPs") or that otherwise utilize leverage, the Independent Board Members noted, in particular, NAM's efforts in refi-nancing the preferred shares of such funds frozen by the collapse of the auction rate market and managing leverage during a period of rapid market declines, particularly for the non-equity funds. Such efforts included negotiating and maintaining the availability of bank loan facilities and other sources of credit used for investment purposes or to satisfy liquidity needs, liquidating portfolio securities during difficult times to meet leverage ratios, and seeking alternative forms of debt and other leverage that may over time reduce financing costs associated with ARPs and enable the funds that have issued ARPs to restore liquidity to ARPs holders. The Independent Board Members also noted Nuveen's continued commitment and efforts to keep investors and financial advisers informed as to its progress with the ARPs through, among other things, conference calls, emails, press releases, information posted on its website, and telephone calls and in-person meetings with financial advisers. In addition to the foregoing, the Independent Board Members also noted the additional services that NAM or its affiliates provide to closed-end funds, including, in particular, Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds 110 Nuveen Investments through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include maintaining an investor relations program to provide timely information and education to financial advisers and investors; providing advertising and marketing for the closed-end funds; maintaining websites; and providing educational seminars. As part of their review, the Independent Board Members also evaluated the background, experience and track record of NAM's investment personnel. In this regard, the Independent Board Members considered any changes in the personnel, and the impact on the level of services provided to the Funds, if any. The Independent Board Members also reviewed information regarding portfolio manager compensation arrangements to evaluate NAM's ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive for taking undue risks. In addition to advisory services, the Independent Board Members considered the quality of administrative services provided by NAM and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support. Given the importance of compliance, the Independent Board Members considered NAM's compliance program, including the report of the chief compliance officer regarding the Funds' compliance policies and procedures. Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Advisory Agreements were satisfactory. B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM The Board considered the investment performance of each Fund, including the Fund's historic performance as well as its performance compared to funds with similar investment objectives (the "Performance Peer Group") based on data provided by an independent provider of mutual fund data as well as recognized and/or customized benchmarks (as applicable). The Independent Board Members reviewed performance information including, among other things, total return information compared with the Fund's Performance Peer Group and recognized and/or customized benchmarks (as applicable) for the quarter-, one-, three- and five-year periods (as applicable) ending December 31, 2008 and for the same periods (as applicable) ending March 31, 2009. The Independent Board Members also reviewed performance information of the Nuveen municipal funds managed by NAM in the aggregate ranked by peer group and the performance of such funds, in the aggregate, relative to their benchmark. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings. In comparing a fund's performance with that of its Performance Peer Group, the Independent Board Members took into account that the closest Performance Peer Group in certain instances may not adequately reflect the respective fund's investment objectives and strategies thereby hindering a meaningful comparison of the fund's performance with that of the Performance Peer Group. The Independent Board Members further considered the performance of the Funds in the context of the volatile Nuveen Investments 111 Annual Investment Management Agreement Approval Process (continued) market conditions during the past year, and their impact on various asset classes and the portfolio management of the Funds. Based on their review and factoring in the severity of market turmoil in 2008, the Independent Board Members determined that each Fund's investment performance over time had been satisfactory. C. FEES, EXPENSES AND PROFITABILITY 1. Fees and Expenses The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund's gross management fees, net management fees and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as compared to the fee and expenses of a comparable universe of unaffiliated funds based on data provided by an independent fund data provider (the "Peer Universe") and in certain cases, to a more focused subset of funds in the Peer Universe (the "Peer Group"). The Independent Board Members further reviewed data regarding the construction of the applicable Peer Universe and Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as the asset level of a fund relative to peers, the size and particular composition of the Peer Universe or Peer Group, the investment objectives of the peers, expense anomalies, changes in the funds comprising the Peer Universe or Peer Group from year to year, levels of reimbursement and the timing of information used may impact the comparative data, thereby limiting the ability to make a meaningful comparison. In addition, the Independent Board Members considered, among other things, the differences in the use and type of leverage compared to the peers. In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund's management fees and net total expense ratio were reasonable in light of the nature, extent and quality of services provided to the Fund. 2. Comparisons with the Fees of Other Clients The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by NAM to other clients. Such other clients include NAM's municipal separately managed accounts. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and 112 Nuveen Investments costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees. 3. Profitability of Nuveen In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers other than Winslow Capital) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2008. In addition, the Independent Board Members reviewed information regarding the financial results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they had also appointed an Independent Board Member as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen's revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen. In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser's particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen's investment in its fund business. Based on their review, the Independent Board Members concluded that Nuveen's level of profitability for its advisory activities was reasonable in light of the services provided. Nuveen Investments 113 Annual Investment Management Agreement Approval Process (continued) In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to NAM by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NAM and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits NAM may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. In this regard, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds' investment portfolio. While economies of scale result when costs can be spread over a larger asset base, the Independent Board Members also recognized that the asset levels generally declined in 2008 due to, among other things, the market downturn. Accordingly, for funds with a reduction in assets under management, advisory fee levels may have increased as breakpoints in the fee schedule were no longer surpassed. In addition to fund-level advisory fee breakpoints, the Board also considered the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex generally are reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen's costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base. Generally, the complex-wide pricing reduces Nuveen's revenue because total complex fund assets have consistently grown in prior years. As noted, however, total fund assets declined in 2008 resulting in a smaller downward adjustment of revenues due to complex-wide pricing compared to the prior year. Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase. 114 Nuveen Investments E. INDIRECT BENEFITS In evaluating fees, the Independent Board Members received and considered information regarding potential "fall out" or ancillary benefits NAM or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered revenues received by affiliates of NAM for serving as agent at Nuveen's trading desk. In addition to the above, the Independent Board Members considered whether NAM received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to NAM in managing the assets of the Funds and other clients. The Independent Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating "commissions," NAM intends to comply with the applicable safe harbor provisions. Based on their review, the Independent Board Members concluded that any indirect benefits received by NAM as a result of its relationship with the Funds were reasonable and within acceptable parameters. F. OTHER CONSIDERATIONS The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Advisory Agreements are fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed. Nuveen Investments 115 Reinvest Automatically Easily and Conveniently NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price 116 Nuveen Investments 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. Nuveen Investments 117 Glossary of Terms Used in this Report o AUCTION RATE BOND: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have "failed," with current holders receiving a formula-based interest rate until the next scheduled auction. o 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. o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of the bonds in a Fund's portfolio, computed by weighting each bond's time to maturity (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 unless an escrow account has been established to redeem the bond before maturity. The market value weighting for an investment in an inverse floating rate security is the value of the portfolio's residual interest in the inverse floating rate trust, and does not include the value of the floating rate securities issued by the trust. o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse floaters, are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. 118 Nuveen Investments o LEVERAGE-ADJUSTED 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. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by subtracting the liabilities of the Fund (including any Preferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of common shares outstanding. Fund NAVs are calculated at the end of each business day. o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond's credit rating and thus its value. o 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. o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. Nuveen Investments 119 Notes 120 Nuveen Investments Other Useful Information BOARD OF DIRECTORS/TRUSTEES John P. Amboian Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Judith M. Stockdale Carole E. Stone Terence J. Toth 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 QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION You may obtain (i) each Fund's quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the twelve-month period ended June 30, 2009, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities 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 (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 100 F Street NE, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. COMMON AND PREFERRED SHARE INFORMATION Each Fund intends to repurchase and/or redeem shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed shares of their common and/or preferred stock as shown in the accompanying table. COMMON SHARES PREFERRED SHARES FUND REPURCHASED REDEEMED NPP -- 790 NMA -- 1,938 NMO -- 600 NAD -- 200 NXZ -- -- NZF -- 1,353 Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report. Nuveen Investments 121 Nuveen Investments: Serving Investors for Generations Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS. Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, the Company managed $141 billion of assets on September 30, 2009. 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 Distributed by Nuveen Investments, LLC 333 West Wacker Drive Chicago, IL 60606 It's not what you earn, www.nuveen.com it's what you keep.(R) EAN-B-1009D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder. (To view the code, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Directors or Trustees ("Board") determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Nuveen Municipal Market Opportunity Fund, Inc. The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4) ------------------------------------------------------------------------------------------------------------------------------------ October 31, 2009 $ 39,670 $ 0 $ 0 $ 3,400 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------ October 31, 2008 $ 39,058 $ 0 $ 0 $ 3,350 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements. (2) "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees." (3) "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. (4) "All Other Fees" are the aggregate fees billed for products and services for agreed upon procedures engagements performed for leveraged funds. SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS ------------------------------------------------------------------------------------------------------------------------------------ October 31, 2009 $ 0 $ 0 $ 0 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------ October 31, 2008 $ 0 $ 0 $ 0 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL ------------------------------------------------------------------------------------------------------------------------------------ October 31, 2009 $ 3,400 $ 0 $ 0 $ 3,400 October 31, 2008 $ 3,350 $ 0 $ 0 $ 3,350
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees" and "All Other Fees" billed to Fund in their respective amounts from the previous table. Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and David J. Kundert. ITEM 6. SCHEDULE OF INVESTMENTS. a) See Portfolio of Investments in Item 1. b) Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. The registrant invests its assets primarily in municipal bonds and cash management securities. On rare occasions the registrant may acquire, directly or through a special purpose vehicle, equity securities of a municipal bond issuer whose bonds the registrant already owns when such bonds have deteriorated or are expected shortly to deteriorate significantly in credit quality. The purpose of acquiring equity securities generally will be to acquire control of the municipal bond issuer and to seek to prevent the credit deterioration or facilitate the liquidation or other workout of the distressed issuer's credit problem. In the course of exercising control of a distressed municipal issuer, NAM may pursue the registrant's interests in a variety of ways, which may entail negotiating and executing consents, agreements and other arrangements, and otherwise influencing the management of the issuer. NAM does not consider such activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but nevertheless provides reports to the registrant's Board on its control activities on a quarterly basis. In the rare event that a municipal issuer were to issue a proxy or that the registrant were to receive a proxy issued by a cash management security, NAM would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the registrant's Board or its representative. A member of NAM's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on Form N-PX, and the results provided to the registrant's Board and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. THE PORTFOLIO MANAGER The following individual has primary responsibility for the day-to-day implementation of the registrant's investment strategies: NAME FUND THOMAS SPALDING Nuveen Municipal Market Opportunity Fund, Inc. Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts: TYPE OF ACCOUNT NUMBER OF PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS -------------------------------------------------------------------------------- Thomas Spalding Registered Investment Company 11 $8.2 billion Other Pooled Investment Vehicles 0 $0 Other Accounts 4 $16.6 million * Assets are as of October 31, 2009. None of the assets in these accounts are subject to an advisory fee based on performance. Compensation. Each portfolio manager's compensation consists of three basic elements--base salary, cash bonus and long-term incentive compensation. The compensation strategy is to annually compare overall compensation, including these three elements, to the market in order to create a compensation structure that is competitive and consistent with similar financial services companies. As discussed below, several factors are considered in determining each portfolio manager's total compensation. In any year these factors may include, among others, the effectiveness of the investment strategies recommended by the portfolio manager's investment team, the investment performance of the accounts managed by the portfolio manager, and the overall performance of Nuveen Investments, Inc. (the parent company of NAM). Although investment performance is a factor in determining the portfolio manager's compensation, it is not necessarily a decisive factor. The portfolio manager's performance is evaluated in part by comparing manager's performance against a specified investment benchmark. This fund-specific benchmark is a customized subset (limited to bonds in each Fund's specific state and with certain maturity parameters) of the S&P/Investortools Municipal Bond index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of October 31, 2009, the S&P/Investortools Municipal Bond index was comprised of 54,552 securities with an aggregate current market value of $1,178 billion. Base salary. Each portfolio manager is paid a base salary that is set at a level determined by NAM in accordance with its overall compensation strategy discussed above. NAM is not under any current contractual obligation to increase a portfolio manager's base salary. Cash bonus. Each portfolio manager is also eligible to receive an annual cash bonus. The level of this bonus is based upon evaluations and determinations made by each portfolio manager's supervisors, along with reviews submitted by his peers. These reviews and evaluations often take into account a number of factors, including the effectiveness of the investment strategies recommended to the NAM's investment team, the performance of the accounts for which he serves as portfolio manager relative to any benchmarks established for those accounts, his effectiveness in communicating investment performance to stockholders and their representatives, and his contribution to the NAM's investment process and to the execution of investment strategies. The cash bonus component is also impacted by the overall performance of Nuveen Investments, Inc. in achieving its business objectives. Long-term incentive compensation. In connection with the acquisition of Nuveen Investments, Inc., by a group of investors led by Madison Dearborn Partners in November 2007, certain employees, including portfolio managers, received profit interests in Nuveen's parent. These profit interests entitle the holders to participate in the appreciation in the value of Nuveen beyond the issue date and vest over five to seven years, or earlier in the case of a liquidity event. In addition, in July 2009, Nuveen Investments created and funded a trust, as part of a newly-established incentive program, which purchased shares of certain Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain employees, including portfolio managers. Material Conflicts of Interest. Each portfolio manager's simultaneous management of the registrant and the other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the registrant and the other account. NAM, however, believes that such potential conflicts are mitigated by the fact that the NAM has adopted several policies that address potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager, although the allocation procedures may provide allocation preferences to funds with special characteristics (such as favoring state funds versus national funds for allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest. Beneficial Ownership of Securities. As of October 31, 2009, the portfolio manager beneficially owned the following dollar range of equity securities issued by the registrant and other Nuveen Funds managed by NAM's municipal investment team.
DOLLAR RANGE OF EQUITY SECURITIES DOLLAR RANGE OF BENEFICIALLY OWNED IN EQUITY THE REMAINDER OF SECURITIES NUVEEN FUNDS MANAGED NAME OF PORTFOLIO BENEFICIALLY BY NAM'S MUNICIPAL MANAGER FUND OWNED IN FUND INVESTMENT TEAM ------------------------------------------------------------------------------------------------------------------ Thomas Spalding Nuveen Municipal Market Opportunity Fund, Inc. $500,000-$1,000,000 Over $1,000,000
PORTFOLIO MANAGER BIO: Thomas Spalding, CFA, is Vice President and Senior Investment Officer of Nuveen Investments. He has direct investment responsibility for the National Long Term funds. He joined Nuveen in 1976 as assistant portfolio manager and has been the portfolio manager of the Nuveen Municipal Value Fund, Nuveen's first closed-end exchange traded fund, since its inception in 1987. Currently, he manages investments for 12 Nuveen-sponsored investment companies. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (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 because the code is posted on registrant's website at www.nuveen.com/CEF/Info/ Shareholder and there were no amendments during the period covered by this report. (To view the code, click on Fund Governance and then Code of Conduct.) (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/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy Vice President and Secretary Date: January 8, 2010 ------------------------------------------------------------------- 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: January 8, 2010 ------------------------------------------------------------------- By (Signature and Title) /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: January 8, 2010 -------------------------------------------------------------------