N-CSR 1 file001.txt NUVEEN INVESTMENT QUALITY MUNICIPAL 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 811-06091 --------------------- Nuveen Investment Quality Municipal 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 INVESTMENT NUVEEN SELECT NUVEEN QUALITY NUVEEN PREMIER QUALITY MUNICIPAL QUALITY MUNICIPAL INCOME MUNICIPAL MUNICIPAL INCOME FUND, INC. FUND, INC. FUND, INC. FUND, INC. NQM NQS NQU NPF ----------------- ------------------ NUVEEN MUNICIPAL NUVEEN MUNICIPAL HIGH INCOME HIGH INCOME OPPORTUNITY FUND OPPORTUNITY FUND 2 NMZ NMD 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 Investment Quality Municipal Fund, Inc. (NQM) Nuveen Select Quality Municipal Fund, Inc. (NQS) Nuveen Quality Income Municipal Fund, Inc. (NQU) Nuveen Premier Municipal Income Fund, Inc. (NPF) Nuveen Municipal High Income Opportunity Fund (NMZ) Nuveen Municipal High Income Opportunity Fund 2 (NMD) Portfolio managers Tom Spalding, Paul Brennan, John Miller and Johnathan Wilhelm discuss U.S. economic and municipal market conditions, key investment strategies, and the twelve-month performance of these six Funds. A 33-year veteran of Nuveen, Tom has managed NQS and NQU since 2003. With 20 years of industry experience, including twelve years at Nuveen, Paul assumed portfolio management responsibility for NPF in 2006. John, who has 15 years of municipal market experience, has managed NMZ since its inception in 2003. Johnathan, who joined Nuveen in 2001 with 20 years of industry experience, served as co-portfolio manager of NMD beginning in 2007 and assumed full portfolio management responsibility for this Fund as well as for NQM in March 2009. 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 in addition to maintaining the current rate, it would buy $300 billion in long-term Treasury securities and up to an additional $750 billion (for a total of $1.25 trillion) in agency mortgage-backed securities to bolster the credit and housing markets. 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 In recent months, the measures taken by the Fed and the others to ease the economic recession have produced some incipient signs of improvement. In the third quarter of 2009, 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 something of 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 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 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. Nuveen Investments 3 WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS? During the majority of this twelve-month period, the tax-exempt municipal bond market was characterized by strong demand, constrained supply 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 NQM, we added to our holdings of credits rated A and BBB and, to a lesser degree, non-rated and sub-investment grade bonds. These additions to our portfolio, which we purchased in both the primary and secondary markets, tended to have maturities at the longer end of the yield curve, specifically 20 to 30 years. From a sector perspective, we emphasized hospital and industrial development revenue (IDR) bonds, both of which we believed to be significant areas of opportunity. 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 NQS and NQU, our focus was generally on purchasing investment-grade quality bonds offering good call protection. Many of the additions to our portfolio were in the health care sector, primarily bonds rated AA, A or BBB. In NPF, we purchased bonds with longer maturities in two categories: essential services and health care. In essential services, our purchases included bonds such as those issued for water and sewer projects, utilities, schools and roads. In the health care sector, most were rated AA or A. In NMZ and NMD, which were established as high-yield funds that can invest up to 50% of their portfolios in sub-investment-grade quality municipal credits, our primary emphasis remained on bottom-up credit analysis and selection, which we believe are critical in the high-yield segment of the market. During this period, NMZ also emphasized the selective buying of bonds that had been battered by the challenging market environment of 2008, which we found in sectors such as hospitals and industrial development revenue (IDR) bonds. Two other areas of the market that we believed to be undervalued were community development districts (CDD) and natural gas pre-payment contract bonds. CDD bonds have been impacted by the decline of the housing market as well as weaker demand, particularly from retail buyers. Natural gas pre-payment contract bonds, which are used by municipal utilities to prepay for gas supplies to be delivered over a long period of time, are backed by a combination of public gas distribution systems and major financial institutions. As a result, these bonds suffered during the downturn in the financial sector. In general, we were buying bonds rated BBB that had better known names and relatively stable track records, all of which enhanced the liquidity of the bonds we purchased. We also maintained our positions in bonds that we believed were good long-term holds with stable to improving credit fundamentals. 4 Nuveen Investments In NMD, we also found attractive opportunities to increase the Fund's exposure to gas pre-payment bonds as well as special tax issues and bonds issued for charter and private schools. In addition, we reduced our exposure to health care, where we thought NMD had become too heavily weighted. Cash for new purchases during this period was generated largely by maturing or called bonds and sinking fund proceeds. In addition, NPF sold some credits with shorter maturities, including pre-refunded bonds. In NQM, we sold bonds that we believed did not have much capacity for further price appreciation, including pre-refunded bonds and bonds that were running up close to their call dates. NMD also sold holdings where we wanted to reduce exposure to an individual issuer or where there was a changing credit outlook. Additionally, NMD took advantage of strong bids to sell selected bonds that were attractive to the market and reinvested the proceeds in bonds with higher yields. 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. NPF, NMZ and NMD also invested in additional types of derivative instruments(2) designed to help shorten duration and moderate interest rate risk. In NPF, these derivatives were removed early in the reporting period, while NMZ and NMD continued to use derivatives as of October 31, 2009. 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 ------------------------------------------------------------------------------------- NQM 24.35% 3.63% 6.43% NQS 25.67% 3.89% 6.50% NQU 19.58% 3.83% 6.12% NPF 25.53% 3.02% 5.79% 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% NMZ 30.90% 2.20% N/A NMD 32.43% N/A N/A Standard & Poor's (S&P) High-Yield Municipal Bond Index(5) 18.17% 2.93% 4.56% Lipper High-Yield Municipal Debt Funds Average(4) 24.22% 3.30% 4.65% -------------------------------------------------------------------------------------
(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. 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. (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. The Lipper High-Yield Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 1-year, 15 funds; 5-year, 14 funds; and 10-year, 11 funds. Fund and Lipper returns assume reinvestment of dividends. You cannot invest directly in a Lipper Average. (5) The Standard & Poor's (S&P) High-Yield Municipal Bond Index comprises all of the bonds in the S&P National Municipal Bond Index that are non-rated or rated BB+ by S&P and/or Ba1 by Moody's or lower. The index does not contain bonds that are pre-refunded or escrowed to maturity. This index does not reflect any initial or ongoing expenses and is not available for direct investment. Nuveen Investments 5 For the twelve months ended October 31, 2009, the total returns on common share net asset value (NAV) for NQM, NQS, NQU and NPF exceeded the returns for the Standard & Poor's (S&P) National Municipal Bond Index. These four Funds underperformed the average return for the Lipper General Leveraged Municipal Debt Funds Average. Both NMZ and NMD outperformed the returns for the S&P High-Yield Municipal Bond Index and the Lipper High-Yield 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 seven. 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. Overall, NQM, NQS and NPF, which had relatively more exposure to the longer end of the curve, were better positioned in terms of duration than NQU, which had the shortest duration among these four Funds. Both NMZ and NMD also had heavy allocations of bonds with longer maturities, with NMZ having the longer duration of the two. As mentioned earlier, our duration strategies in NPF, NMZ and NMD included using derivative positions to synthetically reduce the duration of these three Funds and moderate their interest rate risk. In NMZ and NMD, these derivatives performed poorly and actually had a slight negative impact on the overall strong total return performance of these Funds. Because the derivative positions in NPF were removed shortly after the beginning of this reporting period, they had a negligible impact on this Fund's 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. In addition, NQU's overall higher credit quality (as measured by its allocation of AAA bonds) hampered the Fund's performance in the market environment of the past twelve months. 6 Nuveen Investments 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. In NMZ, some of the bonds we purchased during this period to take advantage of opportunities that we believed were undervalued performed very well following their addition to our portfolio. Examples of these bonds included Harmony Community Development District in Florida; Sullivan County Health for the Wellmont Health System in Tennessee; Tennessee Energy Acquisition Corporation, a natural gas prepayment contract bond backed by Goldman Sachs; and Westlake Chemical in Louisiana, an IDR bond. 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 poorly during this period. The underperformance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. As of October 31, 2009, holdings of pre-refunded bonds ranged from approximately 16% to 35% among NQM, NQS, NQU and NPF, with NQU having the heaviest weighting and NPF the smallest. NMZ held just over 1% of its portfolio in pre-refunded issues, while NMD did not hold any of these bonds. Since pre-refunded bonds tend to be shorter duration, higher quality bonds, they generally do not fit the profiles of longer-term, higher-yielding Funds such as NMZ and NMD. Other market segments that detracted from performance included resource recovery, leasing, and electric utilities, 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. 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 performances shown on page five. Nuveen Investments 7 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. 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, 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. 8 Nuveen Investments As of October 31, 2009, the amount of auction rate preferred securities redeemed by the Funds are as shown in the accompanying table. As noted previously, NMD is an unleveraged Fund.3 AUCTION RATE % OF ORIGINAL PREFERRED SHARES AUCTION RATE FUND REDEEMED PREFERRED SHARES -------------------------------------------------------------------------------- NQM $ 90,300,000 30.0% NQS $ 27,725,000 9.9% NQU $ 65,125,000 14.4% NPF $ 38,150,000 23.1% NMZ $ 60,000,000 38.7% -------------------------------------------------------------------------------- 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 9 Common Share Dividend and Share Price Information During the twelve-month reporting period ended October 31, 2009, NQU and NPF each had three monthly dividend increases and NQM and NQS each had two increases. The dividends of NMZ and NMD remained stable throughout the reporting period. Due to normal portfolio activity, common shareholders of the following Funds received capital gains and/or net ordinary income distributions at the end of December 2008 as follows: SHORT-TERM CAPITAL GAINS LONG-TERM CAPITAL GAINS AND/OR ORDINARY INCOME FUND FUND (PER SHARE) (PER SHARE) -------------------------------------------------------------------------------- NQM $ 0.0299 $ 0.0021 NMZ -- $ 0.0391 -------------------------------------------------------------------------------- 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 As of October 31, 2009, NPF has cumulatively repurchased common shares as shown in the accompanying table. Since the inception of the Funds' repurchase program, NQM, NQS, NQU, NMZ and NMD have not repurchased any of their outstanding common shares. COMMON SHARES % OF OUTSTANDING FUND REPURCHASED COMMON SHARES -------------------------------------------------------------------------------- NPF 202,500 1.0% -------------------------------------------------------------------------------- 10 Nuveen Investments During the twelve-month reporting period, NPF's common shares were repurchased at a weighted average price and a weighted average discount per common share as shown in the accompanying table. WEIGHTED AVERAGE WEIGHTED AVERAGE PRICE PER SHARE DISCOUNT PER SHARE FUND REPURCHASED REPURCHASED -------------------------------------------------------------------------------- NPF $ 10.51 17.21% -------------------------------------------------------------------------------- As of October 31, 2009, the Funds' common share prices were trading at (+) premiums or (-) discounts to their common share NAVs as shown in the accompanying table. 10/31/09 TWELVE-MONTH AVERAGE FUND (+)PREMIUM/(-)DISCOUNT (+)PREMIUM/(-)DISCOUNT -------------------------------------------------------------------------------- NQM -7.92% -8.99% NQS -2.62% -4.99% NQU -7.21% -7.42% NPF -10.53% -11.36% NMZ +6.62% +11.74% NMD +4.69% +10.89% -------------------------------------------------------------------------------- Nuveen Investments 11 NQM Performance OVERVIEW | Nuveen Investment Quality Municipal Fund, Inc. as of October 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.13 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.26 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -7.92% -------------------------------------------------------------------------------- Market Yield 6.40% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.89% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 510,910 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.42 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.68 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 6/21/90) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 31.77% 24.35% -------------------------------------------------------------------------------- 5-Year 3.23% 3.63% -------------------------------------------------------------------------------- 10-Year 6.48% 6.43% -------------------------------------------------------------------------------- STATES (as a % of total investments) -------------------------------------------------------------------------------- California 13.4% -------------------------------------------------------------------------------- New York 10.6% -------------------------------------------------------------------------------- Texas 9.8% -------------------------------------------------------------------------------- Illinois 6.9% -------------------------------------------------------------------------------- Minnesota 4.8% -------------------------------------------------------------------------------- District of Columbia 4.7% -------------------------------------------------------------------------------- Washington 3.8% -------------------------------------------------------------------------------- Florida 3.8% -------------------------------------------------------------------------------- Georgia 3.2% -------------------------------------------------------------------------------- Michigan 2.7% -------------------------------------------------------------------------------- Colorado 2.4% -------------------------------------------------------------------------------- Wisconsin 2.4% -------------------------------------------------------------------------------- Indiana 2.2% -------------------------------------------------------------------------------- Massachusetts 2.2% -------------------------------------------------------------------------------- Nevada 2.1% -------------------------------------------------------------------------------- Pennsylvania 1.9% -------------------------------------------------------------------------------- Tennessee 1.8% -------------------------------------------------------------------------------- South Carolina 1.7% -------------------------------------------------------------------------------- Other 19.6% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 22.9% -------------------------------------------------------------------------------- Health Care 16.6% -------------------------------------------------------------------------------- Tax Obligation/Limited 14.5% -------------------------------------------------------------------------------- Transportation 10.9% -------------------------------------------------------------------------------- Tax Obligation/General 10.8% -------------------------------------------------------------------------------- Water and Sewer 7.3% -------------------------------------------------------------------------------- Utilities 5.7% -------------------------------------------------------------------------------- Other 11.3% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 40% AA 19% A 26% BBB 11% BB or Lower 1% N/R 3% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2) [BAR CHART] Nov $ 0.0625 Dec 0.0625 Jan 0.0625 Feb 0.0625 Mar 0.0625 Apr 0.0625 May 0.0635 Jun 0.0635 Jul 0.0635 Aug 0.0635 Sep 0.0700 Oct 0.0700 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 10.93 11.65 10.95 9.56 10.88 10.45 9.33 9.96 9.89 10.91 11.85 12.00 11.90 12.15 12.27 12.17 10.80 11.73 11.25 11.62 11.64 11.89 11.98 11.95 12.04 12.20 12.23 12.28 12.38 12.54 12.49 12.59 12.05 12.09 12.40 12.40 12.43 12.53 12.67 12.79 12.79 12.57 12.81 12.98 13.30 13.60 13.64 13.82 13.93 13.74 13.17 13.21 10/31/09 13.13 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (2) The Fund paid shareholders capital gains and net ordinary income distributions in December 2008 of $0.0320 per share. 12 Nuveen Investments NQS Performance OVERVIEW | Nuveen Select Quality Municipal Fund, Inc. as of October 31, 2009 CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 41% AA 14% A 25% BBB 17% BB or Lower 2% N/R 1% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Nov $ 0.0670 Dec 0.0670 Jan 0.0670 Feb 0.0670 Mar 0.0670 Apr 0.0670 May 0.0740 Jun 0.0740 Jul 0.0740 Aug 0.0740 Sep 0.0750 Oct 0.0750 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 11.07 11.76 11.16 9.39 10.36 9.34 9.20 10.30 10.01 10.72 11.75 12.00 11.67 11.98 12.40 12.26 10.82 11.38 10.96 11.38 11.61 11.59 11.54 11.50 11.75 11.78 12.22 12.48 12.88 12.82 12.96 13.07 12.82 12.89 12.70 12.88 13.30 13.20 13.22 13.27 13.47 13.43 13.50 13.61 13.91 14.07 14.38 14.16 14.37 14.62 13.73 13.93 10/31/09 13.77 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.77 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.14 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -2.62% -------------------------------------------------------------------------------- Market Yield 6.54% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 9.08% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 481,233 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.98 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 11.34 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/21/91) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 34.19% 25.67% -------------------------------------------------------------------------------- 5-Year 4.21% 3.89% -------------------------------------------------------------------------------- 10-Year 7.22% 6.50% -------------------------------------------------------------------------------- STATES (as a % of total investments) -------------------------------------------------------------------------------- Illinois 9.8% -------------------------------------------------------------------------------- Texas 9.6% -------------------------------------------------------------------------------- Colorado 7.4% -------------------------------------------------------------------------------- New York 5.5% -------------------------------------------------------------------------------- New Jersey 5.2% -------------------------------------------------------------------------------- South Carolina 5.1% -------------------------------------------------------------------------------- Michigan 4.4% -------------------------------------------------------------------------------- Ohio 4.1% -------------------------------------------------------------------------------- Nevada 3.8% -------------------------------------------------------------------------------- California 3.5% -------------------------------------------------------------------------------- New Mexico 3.3% -------------------------------------------------------------------------------- North Carolina 3.2% -------------------------------------------------------------------------------- Washington 3.0% -------------------------------------------------------------------------------- Tennessee 2.9% -------------------------------------------------------------------------------- Utah 2.7% -------------------------------------------------------------------------------- Florida 2.5% -------------------------------------------------------------------------------- Indiana 2.0% -------------------------------------------------------------------------------- Arizona 1.9% -------------------------------------------------------------------------------- Alabama 1.9% -------------------------------------------------------------------------------- Other 18.2% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 27.5% -------------------------------------------------------------------------------- Health Care 14.8% -------------------------------------------------------------------------------- Utilities 14.5% -------------------------------------------------------------------------------- Transportation 13.0% -------------------------------------------------------------------------------- Tax Obligation/Limited 9.6% -------------------------------------------------------------------------------- Tax Obligation/General 8.0% -------------------------------------------------------------------------------- Consumer Staples 5.3% -------------------------------------------------------------------------------- Other 7.3% -------------------------------------------------------------------------------- (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. Nuveen Investments 13 NQU Performance OVERVIEW | Nuveen Quality Income Municipal Fund, Inc. as of October 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.26 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.29 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -7.21% -------------------------------------------------------------------------------- Market Yield 6.52% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 9.06% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 774,982 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 13.74 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.98 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 6/19/91) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 21.10% 19.58% -------------------------------------------------------------------------------- 5-Year 3.96% 3.83% -------------------------------------------------------------------------------- 10-Year 5.93% 6.12% -------------------------------------------------------------------------------- STATES (as a % of total investments) -------------------------------------------------------------------------------- Illinois 10.2% -------------------------------------------------------------------------------- New York 10.0% -------------------------------------------------------------------------------- Texas 9.6% -------------------------------------------------------------------------------- California 8.9% -------------------------------------------------------------------------------- Washington 6.8% -------------------------------------------------------------------------------- South Carolina 5.2% -------------------------------------------------------------------------------- Massachusetts 4.7% -------------------------------------------------------------------------------- Ohio 3.7% -------------------------------------------------------------------------------- Puerto Rico 3.6% -------------------------------------------------------------------------------- Colorado 3.4% -------------------------------------------------------------------------------- Nevada 3.4% -------------------------------------------------------------------------------- New Jersey 3.3% -------------------------------------------------------------------------------- Pennsylvania 2.7% -------------------------------------------------------------------------------- Louisiana 2.3% -------------------------------------------------------------------------------- Oklahoma 2.3% -------------------------------------------------------------------------------- Other 19.9% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 34.1% -------------------------------------------------------------------------------- Tax Obligation/General 15.3% -------------------------------------------------------------------------------- Transportation 11.9% -------------------------------------------------------------------------------- Utilities 10.9% -------------------------------------------------------------------------------- Health Care 8.4% -------------------------------------------------------------------------------- Tax Obligation/Limited 7.3% -------------------------------------------------------------------------------- Other 12.1% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 53% AA 16% A 22% BBB 7% BB or Lower 1% N/R 1% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Nov $ 0.0630 Dec 0.0630 Jan 0.0630 Feb 0.0630 Mar 0.0650 Apr 0.0650 May 0.0685 Jun 0.0685 Jul 0.0685 Aug 0.0685 Sep 0.0720 Oct 0.0720 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 11.24 11.70 11.74 10.45 11.00 10.38 9.47 10.44 10.57 11.87 12.26 12.04 12.10 12.21 12.63 12.43 11.27 11.97 11.54 11.88 11.98 12.18 12.02 12.23 12.30 12.54 12.69 13.04 12.83 12.80 12.66 12.69 12.35 12.43 12.73 12.80 13.05 13.15 13.35 13.31 13.25 13.09 13.29 13.44 13.69 13.72 13.92 13.87 13.99 14.01 13.37 13.60 10/31/09 13.26 (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 NPF Performance OVERVIEW | Nuveen Premier Municipal Income Fund, Inc. as of October 31, 2009 CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS) [PIE CHART] AAA/U.S. Guaranteed 25% AA 32% A 30% BBB 12% BB or Lower 1% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Nov $ 0.0575 Dec 0.0575 Jan 0.0575 Feb 0.0575 Mar 0.0590 Apr 0.0590 May 0.0630 Jun 0.0630 Jul 0.0630 Aug 0.0630 Sep 0.0660 Oct 0.0660 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 9.93 10.72 10.22 9.15 9.46 8.63 8.24 9.18 9.61 10.34 11.13 11.49 11.22 11.18 11.74 11.56 10.63 11.09 10.49 10.86 10.96 11.17 11.34 11.23 11.44 11.61 11.68 11.87 12.04 12.01 11.96 12.01 11.57 11.60 11.67 11.64 11.79 11.98 12.02 12.22 12.25 12.24 12.65 12.53 12.76 13.01 13.31 13.38 13.42 13.18 12.66 12.67 10/31/09 12.40 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 12.40 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.86 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -10.53% -------------------------------------------------------------------------------- Market Yield 6.39% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.88% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 275,671 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.09 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.97 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 12/19/91) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 31.11% 25.53% -------------------------------------------------------------------------------- 5-Year 2.81% 3.02% -------------------------------------------------------------------------------- 10-Year 5.73% 5.79% -------------------------------------------------------------------------------- STATES (as a % of total investments) -------------------------------------------------------------------------------- California 12.7% -------------------------------------------------------------------------------- New York 12.2% -------------------------------------------------------------------------------- Colorado 7.0% -------------------------------------------------------------------------------- Illinois 6.6% -------------------------------------------------------------------------------- South Carolina 5.1% -------------------------------------------------------------------------------- Arizona 4.7% -------------------------------------------------------------------------------- Texas 4.6% -------------------------------------------------------------------------------- Washington 4.1% -------------------------------------------------------------------------------- Louisiana 3.9% -------------------------------------------------------------------------------- Wisconsin 3.7% -------------------------------------------------------------------------------- New Jersey 3.4% -------------------------------------------------------------------------------- Minnesota 2.8% -------------------------------------------------------------------------------- Georgia 2.7% -------------------------------------------------------------------------------- North Carolina 2.6% -------------------------------------------------------------------------------- Michigan 2.4% -------------------------------------------------------------------------------- Indiana 2.1% -------------------------------------------------------------------------------- Other 19.4% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/Limited 17.7% -------------------------------------------------------------------------------- Utilities 15.0% -------------------------------------------------------------------------------- U.S. Guaranteed 13.7% -------------------------------------------------------------------------------- Health Care 12.9% -------------------------------------------------------------------------------- Transportation 11.8% -------------------------------------------------------------------------------- Tax Obligation/General 9.5% -------------------------------------------------------------------------------- Water and Sewer 5.1% -------------------------------------------------------------------------------- Other 14.3% -------------------------------------------------------------------------------- (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. Nuveen Investments 15 NMZ Performance OVERVIEW | Nuveen Municipal High Income Opportunity Fund as of October 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 11.92 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 11.18 -------------------------------------------------------------------------------- Premium/(Discount) to NAV 6.62% -------------------------------------------------------------------------------- Market Yield 8.41% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 11.68% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 288,963 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 22.24 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 14.06 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 11/19/03) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 20.00% 30.90% -------------------------------------------------------------------------------- 5-Year 2.90% 2.20% -------------------------------------------------------------------------------- Since Inception 3.52% 3.55% -------------------------------------------------------------------------------- STATES (as a % of total investments)(1) -------------------------------------------------------------------------------- Florida 9.2% -------------------------------------------------------------------------------- Indiana 8.0% -------------------------------------------------------------------------------- California 7.5% -------------------------------------------------------------------------------- Texas 7.3% -------------------------------------------------------------------------------- Illinois 6.2% -------------------------------------------------------------------------------- Colorado 5.1% -------------------------------------------------------------------------------- Wisconsin 4.7% -------------------------------------------------------------------------------- Arizona 4.7% -------------------------------------------------------------------------------- Louisiana 4.4% -------------------------------------------------------------------------------- Ohio 3.8% -------------------------------------------------------------------------------- Tennessee 3.7% -------------------------------------------------------------------------------- Washington 3.2% -------------------------------------------------------------------------------- Michigan 3.1% -------------------------------------------------------------------------------- Nebraska 2.5% -------------------------------------------------------------------------------- Missouri 2.2% -------------------------------------------------------------------------------- Pennsylvania 2.0% -------------------------------------------------------------------------------- North Carolina 2.0% -------------------------------------------------------------------------------- Virgin Islands 1.9% -------------------------------------------------------------------------------- Other 18.5% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments)(1) -------------------------------------------------------------------------------- Health Care 23.5% -------------------------------------------------------------------------------- Tax Obligation/Limited 19.3% -------------------------------------------------------------------------------- Utilities 8.5% -------------------------------------------------------------------------------- Education and Civic Organizations 7.0% -------------------------------------------------------------------------------- Housing/Multifamily 6.8% -------------------------------------------------------------------------------- Water and Sewer 6.7% -------------------------------------------------------------------------------- Transportation 6.2% -------------------------------------------------------------------------------- Materials 5.1% -------------------------------------------------------------------------------- Industrials 4.6% -------------------------------------------------------------------------------- Other 12.3% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1) [PIE CHART] AAA/U.S. Guaranteed 9% AA 4% A 8% BBB 25% BB or Lower 13% N/R 41% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(3) [BAR CHART] Nov $ 0.0835 Dec 0.0835 Jan 0.0835 Feb 0.0835 Mar 0.0835 Apr 0.0835 May 0.0835 Jun 0.0835 Jul 0.0835 Aug 0.0835 Sep 0.0835 Oct 0.0835 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 10.91 11.25 9.97 8.17 9.27 8.14 7.37 7.83 8.17 9.15 10.33 9.95 10.57 10.44 10.36 10.15 10.04 10.19 8.86 9.46 9.91 10.30 10.37 10.13 9.70 10.10 10.49 10.62 10.41 10.59 10.92 11.44 10.85 10.51 10.35 10.52 10.63 10.59 10.85 11.39 11.01 10.96 11.04 11.20 11.56 12.10 12.48 12.75 12.99 12.87 12.30 12.71 10/31/09 11.92 (1) Excluding investments in derivatives. (2) 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. (3) The Fund paid shareholders a net ordinary income distribution in December 2008 of $0.0391 per share. 16 Nuveen Investments NMD Performance OVERVIEW | Nuveen Municipal High Income Opportunity Fund 2 as of October 31, 2009 CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1) [PIE CHART] AAA/U.S. Guaranteed 1% AA 11% A 7% BBB 28% BB or Lower 14% N/R 39% 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Nov $ 0.0800 Dec 0.0800 Jan 0.0800 Feb 0.0800 Mar 0.0800 Apr 0.0800 May 0.0800 Jun 0.0800 Jul 0.0800 Aug 0.0800 Sep 0.0800 Oct 0.0800 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 10.09 10.25 9.91 8.20 8.95 8.11 7.12 7.76 8.28 8.00 9.99 10.28 10.11 9.36 10.13 9.90 9.38 9.49 8.34 9.02 9.02 9.42 9.99 9.85 9.28 9.47 9.99 10.36 10.12 10.01 10.24 10.96 10.55 10.16 10.21 10.26 10.36 10.47 10.52 10.88 11.05 10.78 11.05 11.01 11.26 11.82 11.85 12.39 12.35 12.51 11.82 11.92 10/31/09 11.39 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 11.39 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 10.88 -------------------------------------------------------------------------------- Premium/(Discount) to NAV 4.69% -------------------------------------------------------------------------------- Market Yield 8.43% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 11.71% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 174,353 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 24.66 -------------------------------------------------------------------------------- Modified Duration 12.11 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/07) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 25.45% 32.43% -------------------------------------------------------------------------------- Since Inception -5.59% -5.31% -------------------------------------------------------------------------------- STATES (as a % of total investments)(1) -------------------------------------------------------------------------------- Florida 13.8% -------------------------------------------------------------------------------- California 11.4% -------------------------------------------------------------------------------- Texas 10.3% -------------------------------------------------------------------------------- Illinois 8.7% -------------------------------------------------------------------------------- Colorado 5.8% -------------------------------------------------------------------------------- Washington 5.7% -------------------------------------------------------------------------------- Arizona 4.4% -------------------------------------------------------------------------------- New Jersey 3.9% -------------------------------------------------------------------------------- Louisiana 3.6% -------------------------------------------------------------------------------- Utah 3.2% -------------------------------------------------------------------------------- Indiana 2.8% -------------------------------------------------------------------------------- North Carolina 2.6% -------------------------------------------------------------------------------- Tennessee 2.6% -------------------------------------------------------------------------------- Ohio 2.5% -------------------------------------------------------------------------------- Other 18.7% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments)(1) -------------------------------------------------------------------------------- Health Care 23.9% -------------------------------------------------------------------------------- Tax Obligation/Limited 21.1% -------------------------------------------------------------------------------- Education and Civic Organizations 14.7% -------------------------------------------------------------------------------- Utilities 7.5% -------------------------------------------------------------------------------- Transportation 6.1% -------------------------------------------------------------------------------- Materials 5.1% -------------------------------------------------------------------------------- Consumer Discretionary 4.9% -------------------------------------------------------------------------------- Consumer Staples 4.7% -------------------------------------------------------------------------------- Other 12.0% -------------------------------------------------------------------------------- (1) Excluding investments in derivatives. (2) 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 17 NQM NQS NQU | 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.3 The meeting for NQM, NQS, NQU, NPF and NMZ was subsequently adjourned to September 1, 2009, and then adjourned to October 13, 2009, for NQM, NQS, NQU and NPF; NQS additionally adjourned to November 24, 2009.
NQM NQS NQU -------------------------------------------------------------------------------------------------------------------------------- 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 17,720,947 3,407 17,064,272 5,437 27,557,770 8,993 Against 1,232,689 389 910,131 596 1,700,038 923 Abstain 489,432 57 738,310 245 961,646 50 Broker Non-Votes 5,039,813 773 4,726,426 878 8,528,422 989 -------------------------------------------------------------------------------------------------------------------------------- Total 24,482,881 4,626 23,439,139 7,156 38,747,876 10,955 ================================================================================================================================ TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 17,798,328 3,449 17,097,665 5,507 27,676,894 9,066 Against 1,100,466 357 836,303 561 1,588,319 838 Abstain 544,274 47 778,745 210 954,241 62 Broker Non-Votes 5,039,813 773 4,726,426 878 8,528,422 989 -------------------------------------------------------------------------------------------------------------------------------- Total 24,482,881 4,626 23,439,139 7,156 38,747,876 10,955 ================================================================================================================================ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO INVESTING IN OTHER INVESTMENT COMPANIES. For 17,421,677 3,431 16,878,369 5,446 27,453,747 9,073 Against 1,285,661 357 973,240 587 1,715,971 836 Abstain 735,729 65 861,104 245 1,049,736 57 Broker Non-Votes 5,039,814 773 4,726,426 878 8,528,422 989 -------------------------------------------------------------------------------------------------------------------------------- Total 24,482,881 4,626 23,439,139 7,156 38,747,876 10,955 ================================================================================================================================ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For 17,282,876 3,440 16,862,747 5,469 27,360,911 9,018 Against 1,431,771 342 1,060,825 594 1,857,800 842 Abstain 728,420 71 789,141 215 1,000,743 106 Broker Non-Votes 5,039,814 773 4,726,426 878 8,528,422 989 -------------------------------------------------------------------------------------------------------------------------------- Total 24,482,881 4,626 23,439,139 7,156 38,747,876 10,955 ================================================================================================================================ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 17,298,576 3,426 16,853,977 5,435 27,338,108 9,051 Against 1,394,922 362 994,451 594 1,850,021 843 Abstain 749,569 65 864,285 249 1,031,325 72 Broker Non-Votes 5,039,814 773 4,726,426 878 8,528,422 989 -------------------------------------------------------------------------------------------------------------------------------- Total 24,482,881 4,626 23,439,139 7,156 38,747,876 10,955 ================================================================================================================================ TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 17,283,573 3,431 16,830,521 5,429 27,276,934 9,035 Against 1,413,162 357 1,022,139 604 1,842,148 846 Abstain 746,332 65 860,053 245 1,100,372 85 Broker Non-Votes 5,039,814 773 4,726,426 878 8,528,422 989 -------------------------------------------------------------------------------------------------------------------------------- Total 24,482,881 4,626 23,439,139 7,156 38,747,876 10,955 ================================================================================================================================
18 Nuveen Investments
NQM NQS NQU -------------------------------------------------------------------------------------------------------------------------------- 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 23,347,552 -- 22,131,445 -- 36,800,251 -- Withhold 948,525 -- 1,037,120 -- 1,513,352 -- -------------------------------------------------------------------------------------------------------------------------------- Total 24,296,077 -- 23,168,565 -- 38,313,603 -- ================================================================================================================================ Robert P. Bremner For 23,322,963 -- 22,109,502 -- 36,806,010 -- Withhold 973,114 -- 1,059,063 -- 1,507,593 -- -------------------------------------------------------------------------------------------------------------------------------- Total 24,296,077 -- 23,168,565 -- 38,313,603 -- ================================================================================================================================ Jack B. Evans For 23,339,209 -- 22,121,089 -- 36,782,523 -- Withhold 956,868 -- 1,047,476 -- 1,531,080 -- -------------------------------------------------------------------------------------------------------------------------------- Total 24,296,077 -- 23,168,565 -- 38,313,603 -- ================================================================================================================================ William C. Hunter For -- 4,178 -- 6,801 -- 10,392 Withhold -- 440 -- 294 -- 526 -------------------------------------------------------------------------------------------------------------------------------- Total -- 4,618 -- 7,095 -- 10,918 ================================================================================================================================ David J. Kundert For 23,347,766 -- 22,131,131 -- 36,764,731 -- Withhold 948,311 -- 1,037,434 -- 1,548,872 -- -------------------------------------------------------------------------------------------------------------------------------- Total 24,296,077 -- 23,168,565 -- 38,313,603 -- ================================================================================================================================ William J. Schneider For -- 4,178 -- 6,804 -- 10,392 Withhold -- 440 -- 291 -- 526 -------------------------------------------------------------------------------------------------------------------------------- Total -- 4,618 -- 7,095 -- 10,918 ================================================================================================================================ Judith M. Stockdale For 23,313,660 -- 22,108,943 -- 36,774,232 -- Withhold 982,417 -- 1,059,622 -- 1,539,371 -- -------------------------------------------------------------------------------------------------------------------------------- Total 24,296,077 -- 23,168,565 -- 38,313,603 -- ================================================================================================================================ Carole E. Stone For 23,343,824 -- 22,115,932 -- 36,764,301 -- Withhold 952,253 -- 1,052,633 -- 1,549,302 -- -------------------------------------------------------------------------------------------------------------------------------- Total 24,296,077 -- 23,168,565 -- 38,313,603 -- ================================================================================================================================ Terence J. Toth For 23,347,175 -- 22,129,106 -- 36,776,782 -- Withhold 948,902 -- 1,039,459 -- 1,536,821 -- -------------------------------------------------------------------------------------------------------------------------------- Total 24,296,077 -- 23,168,565 -- 38,313,603 -- ================================================================================================================================
Nuveen Investments 19 NPF NMZ NMD | Shareholder Meeting Report (continued)
NPF NMZ NMD -------------------------------------------------------------------------------------------------------------------------------- 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 10,902,126 2,870 11,937,553 1,616 -- -- Against 1,368,514 532 738,356 300 -- -- Abstain 422,350 101 361,876 53 -- -- Broker Non-Votes 2,387,312 -- 3,354,054 198 -- -- -------------------------------------------------------------------------------------------------------------------------------- Total 15,080,302 3,503 16,391,839 2,167 -- -- ================================================================================================================================ TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 10,975,776 2,994 12,034,542 1,663 -- -- Against 1,322,490 426 627,550 252 -- -- Abstain 394,724 83 375,693 54 -- -- Broker Non-Votes 2,387,312 -- 3,354,054 198 -- -- -------------------------------------------------------------------------------------------------------------------------------- Total 15,080,302 3,503 16,391,839 2,167 -- -- ================================================================================================================================ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO INVESTING IN OTHER INVESTMENT COMPANIES. For 10,884,761 2,990 -- -- -- -- Against 1,319,136 431 -- -- -- -- Abstain 489,093 82 -- -- -- -- Broker Non-Votes 2,387,312 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- Total 15,080,302 3,503 -- -- -- -- ================================================================================================================================ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For 10,741,852 2,994 -- -- -- -- Against 1,416,885 426 -- -- -- -- Abstain 534,253 83 -- -- -- -- Broker Non-Votes 2,387,312 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- Total 15,080,302 3,503 -- -- -- -- ================================================================================================================================ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 10,220,848 2,988 -- -- -- -- Against 1,968,465 431 -- -- -- -- Abstain 503,677 84 -- -- -- -- Broker Non-Votes 2,387,312 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- Total 15,080,302 3,503 -- -- -- -- ================================================================================================================================ TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 10,154,786 2,988 -- -- -- -- Against 2,000,498 431 -- -- -- -- Abstain 537,706 84 -- -- -- -- Broker Non-Votes 2,387,312 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- Total 15,080,302 3,503 -- -- -- -- ================================================================================================================================
20 Nuveen Investments
NPF NMZ NMD -------------------------------------------------------------------------------------------------------------------------------- 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 12,854,664 -- -- -- -- -- Withhold 1,022,451 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- Total 13,877,115 -- -- -- -- -- ================================================================================================================================ Robert P. Bremner For 12,829,353 -- 15,761,351 -- 13,517,403 -- Withhold 1,047,762 -- 630,488 -- 237,406 -- -------------------------------------------------------------------------------------------------------------------------------- Total 13,877,115 -- 16,391,839 -- 13,754,809 -- ================================================================================================================================ Jack B. Evans For 12,855,248 -- 15,782,587 -- 13,520,517 -- Withhold 1,021,867 -- 609,252 -- 234,292 -- -------------------------------------------------------------------------------------------------------------------------------- Total 13,877,115 -- 16,391,839 -- 13,754,809 -- ================================================================================================================================ William C. Hunter For -- 3,140 -- 1,967 -- -- Withhold -- 355 -- 200 -- -- -------------------------------------------------------------------------------------------------------------------------------- Total -- 3,495 -- 2,167 -- -- ================================================================================================================================ David J. Kundert For 12,848,252 -- -- -- -- -- Withhold 1,028,863 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- Total 13,877,115 -- -- -- -- -- ================================================================================================================================ William J. Schneider For -- 3,143 -- 1,967 13,520,307 -- Withhold -- 352 -- 200 234,502 -- -------------------------------------------------------------------------------------------------------------------------------- Total -- 3,495 -- 2,167 13,754,809 -- ================================================================================================================================ Judith M. Stockdale For 12,848,036 -- -- -- -- -- Withhold 1,029,079 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- Total 13,877,115 -- -- -- -- -- ================================================================================================================================ Carole E. Stone For 12,851,983 -- -- -- -- -- Withhold 1,025,132 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- Total 13,877,115 -- -- -- -- -- ================================================================================================================================ Terence J. Toth For 12,848,032 -- -- -- -- -- Withhold 1,029,083 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- Total 13,877,115 -- -- -- -- -- ================================================================================================================================
Nuveen Investments 21 Report of Independent Registered Public Accounting Firm THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC. NUVEEN SELECT QUALITY MUNICIPAL FUND, INC. NUVEEN QUALITY INCOME MUNICIPAL FUND, INC. NUVEEN PREMIER MUNICIPAL INCOME FUND, INC. NUVEEN MUNICIPAL HIGH INCOME OPPORTUNITY FUND NUVEEN MUNICIPAL HIGH INCOME OPPORTUNITY FUND 2 We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Investment Quality Municipal Fund, Inc., Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income Municipal Fund, Inc., Nuveen Premier Municipal Income Fund, Inc., Nuveen Municipal High Income Opportunity Fund, and Nuveen Municipal High Income Opportunity Fund 2 (the "Funds") as of October 31, 2009, and the related statements of operations, changes in net assets, of cash flows (Nuveen Investment Quality Municipal Fund, Nuveen Premier Municipal Income Fund, Inc., and Nuveen Municipal High Income Opportunity Fund 2 only) and the financial highlights for the periods indicated therein. 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 Investment Quality Municipal Fund, Inc., Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income Municipal Fund, Inc., Nuveen Premier Municipal Income Fund, Inc., Nuveen Municipal High Income Opportunity Fund and Nuveen Municipal High Income Opportunity Fund 2 at October 31, 2009, the results of their operations, changes in their net assets, and cash flows (Nuveen Investment Quality Municipal Fund, Nuveen Premier Municipal Income Fund, Inc., and Nuveen Municipal High Income Opportunity Fund 2 only) and the financial highlights for the periods indicated therein in conformity with US generally accepted accounting principles. Ernst & Young LLP Chicago, Illinois December 28, 2009 22 Nuveen Investments NQM | Nuveen Investment Quality Municipal 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) $ 3,800 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 3,815,580 Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36 (UB) Birmingham Special Care Facilities Financing Authority, Alabama, Revenue Bonds, Baptist Health System Inc., Series 2005A: 1,200 5.250%, 11/15/20 11/15 at 100.00 Baa2 1,156,164 800 5.000%, 11/15/30 11/15 at 100.00 Baa2 697,312 1,650 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 1,501,484 Control Revenue Bonds, International Paper Company, Series 2005A, 5.000%, 6/01/25 ------------------------------------------------------------------------------------------------------------------------------------ 7,450 Total Alabama 7,170,540 ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.6% (1.0% OF TOTAL INVESTMENTS) 4,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 4,139,120 Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31 (Pre-refunded 6/01/10) Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A: 4,000 5.000%, 6/01/32 6/14 at 100.00 Baa3 3,032,120 1,500 5.000%, 6/01/46 6/14 at 100.00 Baa3 996,750 ------------------------------------------------------------------------------------------------------------------------------------ 9,500 Total Alaska 8,167,990 ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 2.0% (1.3% OF TOTAL INVESTMENTS) Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health Network, Series 2005B: 200 5.250%, 12/01/24 12/15 at 100.00 BBB 192,726 265 5.250%, 12/01/25 12/15 at 100.00 BBB 253,610 2,500 Mesa, Arizona, Utility System Revenue Bonds, Reset Option 7/17 at 100.00 AAA 1,904,950 Longs, Series 11032- 11034, 13.893%, 7/01/31 - FSA Insured (IF) 5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 4,961,150 Airport Revenue Bonds, Series 2005, Trust 1132, 9.071%, 7/01/38 (IF) 3,450 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 2,950,958 Bonds, Series 2007, 5.000%,12/01/37 ------------------------------------------------------------------------------------------------------------------------------------ 11,415 Total Arizona 10,263,394 ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS) 3,290 University of Arkansas, Pine Bluff Campus, Revenue Bonds, 12/15 at 100.00 Aa3 3,403,143 Series 2005A, 5.000%, 12/01/30 - AMBAC Insured 760 Van Buren County, Arkansas, Sales and Use Tax Revenue 12/10 at 100.00 N/R 775,208 Refunding and Construction Bonds, Series 2000, 5.600%, 12/01/25 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,050 Total Arkansas 4,178,351 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 20.9% (13.4% OF TOTAL INVESTMENTS) 2,250 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 2,297,048 University of Southern California, Series 2005, 4.750%, 10/01/28 (UB) 1,000 California Educational Facilities Authority, Revenue Bonds, 11/15 at 100.00 A2 965,950 University of the Pacific, Series 2006, 5.000%, 11/01/30 2,500 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 AAA 2,507,700 Bonds, Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/27 4,285 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 3,983,250 Bonds, Kaiser Permanante System, Series 2006, 5.000%, 4/01/37 1,800 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 1,925,826 Bonds, Sutter Health, Tender Option Bond Trust 3175, 13.899%, 11/15/42 (IF) California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A: 1,000 5.250%, 7/01/30 7/15 at 100.00 BBB 918,400 2,000 5.000%, 7/01/39 7/15 at 100.00 BBB 1,668,920 5,500 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 5,090,965 Bonds, Sutter Health, Series 2007A, 5.000%, 11/15/42 (UB)
Nuveen Investments 23 NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 1,900 Chula Vista, California, Industrial Development Revenue 6/14 at 102.00 A2 $ 2,000,472 Bonds, San Diego Gas and Electric Company, Series 1996A, 5.300%, 7/01/21 2,530 Commerce Joint Power Financing Authority, California, Tax 8/13 at 100.00 N/R 2,165,857 Allocation Refunding Bonds, Redevelopment Projects 2 and 3, Series 2003A, 5.000%, 8/01/28 - RAAI Insured 145 Commerce Joint Power Financing Authority, California, Tax 8/13 at 100.00 N/R (4) 164,044 Allocation Refunding Bonds, Redevelopment Projects 2 and 3, Series 2003A, 5.000%, 8/01/28 (Pre-refunded 8/01/13) - RAAI Insured Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: 3,000 5.000%, 6/01/33 6/17 at 100.00 BBB 2,289,240 610 5.125%, 6/01/47 6/17 at 100.00 BBB 405,278 1,000 5.750%, 6/01/47 6/17 at 100.00 BBB 738,880 9,740 Huntington Park Redevelopment Agency, California, Single No Opt. Call AAA 13,890,214 Family Residential Mortgage Revenue Refunding Bonds, Series 1986A, 8.000%, 12/01/19 (ETM) 2,700 M-S-R Energy Authority, California, Gas Revenue Bonds, Series No Opt. Call A 3,047,355 2009, 7.000%, 11/01/34 1,030 Natomas Union School District, Sacramento County, California, No Opt. Call A 1,160,264 General Obligation Refunding Bonds, Series 1999, 5.950%, 9/01/21 - NPFG Insured 15,770 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call A 17,976,696 County, California, Revenue Refunding Bonds, Redevelopment Project 1, Series 1995, 7.400%, 8/01/25 - NPFG Insured 13,145 Perris, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 19,226,008 Single Family Mortgage Revenue Bonds, Series 1988B, 8.200%, 9/01/23 (Alternative Minimum Tax) (ETM) 3,415 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 (4) 4,027,924 Revenue Bonds, Eisenhower Medical Center, Series 2004, 5.875%, 7/01/26 (Pre-refunded 7/01/14) 5,000 Riverside Unified School District, Riverside County, 2/12 at 101.00 A+ 5,026,450 California, General Obligation Bonds, Series 2002A, 5.000%, 2/01/27 - FGIC Insured San Diego County, California, Certificates of Participation, Burnham Institute, Series 2006: 250 5.000%, 9/01/21 9/15 at 102.00 Baa3 229,805 275 5.000%, 9/01/23 9/15 at 102.00 Baa3 246,980 660 San Francisco Redevelopment Finance Authority, California, 8/19 at 100.00 A- 688,472 Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2009, 6.500%, 8/01/39 5,000 San Francisco Unified School District, California, General 6/17 at 100.00 AAA 4,184,700 Obligation Bonds, Series 2007A, 3.000%, 6/15/25 - FSA Insured San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A: 6,175 0.000%, 1/15/28 - NPFG Insured No Opt. Call A 1,658,976 8,135 0.000%, 1/15/34 - NPFG Insured No Opt. Call A 1,366,680 17,195 0.000%, 1/15/35 - NPFG Insured No Opt. Call A 2,678,981 1,000 Sierra View Local Health Care District, Tulare County, 1/10 at 100.00 A- 999,940 California, Refunding Revenue Bonds, Series 1998, 5.400%, 7/01/22 3,185 University of California, General Revenue Bonds, Series 5/13 at 101.00 Aa1 3,197,199 2005G, 4.750%, 5/15/31 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 122,195 Total California 106,728,474 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 3.8% (2.4% OF TOTAL INVESTMENTS) 1,000 Colorado Health Facilities Authority, Revenue Bonds, 6/16 at 100.00 A- 945,040 Evangelical Lutheran Good Samaritan Society, Series 2005, 5.000%, 6/01/29 12,450 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 A+ 12,575,247 Refunding Bonds, Series 2000A, 6.000%, 11/15/19 - AMBAC Insured (Alternative Minimum Tax) 14,500 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 2,388,150 Series 2004B, 0.000%, 3/01/36 - NPFG Insured 3,000 Park Creek Metropolitan District, Colorado, Senior Property 12/19 at 100.00 AAA 3,352,050 Tax Supported Revenue Bonds, Series 2009, 6.250%, 12/01/30 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------------ 30,950 Total Colorado 19,260,487 ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 7.3% (4.7% OF TOTAL INVESTMENTS) 23,745 District of Columbia Water and Sewerage Authority, Public 4/10 at 100.00 AAA 27,929,819 Utility Revenue Bonds, Series 1998, 5.500%, 10/01/23 - FSA Insured (UB)
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA (continued) $ 3,000 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call A+ $ 3,471,270 6.000%, 6/01/16 - NPFG Insured 15,950 District of Columbia, Revenue Bonds, Georgetown University, 4/11 at 31.03 A (4) 4,825,194 Series 2001A, 0.000%, 4/01/31 (Pre-refunded 4/01/11) - NPFG Insured 1,200 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 1,114,068 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 43,895 Total District of Columbia 37,340,351 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 6.0% (3.8% OF TOTAL INVESTMENTS) 1,000 Board of Regents, Florida State University, Housing Facility 5/15 at 101.00 A+ 1,008,830 Revenue Bonds, Series 2005A, 5.000%, 5/01/27 - NPFG Insured 4,230 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A- 4,086,434 Bonds, Health First Inc. Project, Series 2005, 5.000%, 4/01/24 250 Brevard County Health Facilities Authority, Florida, Revenue 4/19 at 100.00 A- 270,955 Bonds, Health First Inc. Project, Series 2009B, 7.000%, 4/01/39 1,580 Escambia County Health Facilities Authority, Florida, Health 10/10 at 100.00 Baa1 1,518,743 Facility Revenue Refunding Bonds, Baptist Hospital and Baptist Manor, Series 1998, 5.125%, 10/01/19 1,200 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 831,840 Exempt Facilities Remarketed Revenue Bonds, National Gypsum Company, Apollo Beach Project, Series 2000B, 7.125%, 4/01/30 (Alternative Minimum Tax) 14,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/17 at 100.00 A 13,116,180 International Airport Hub, Series 2007B, 4.500%, 10/01/31 - NPFG Insured 5,895 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 5,533,931 Revenue, Baptist Health System Obligation Group, Series 2007, 5.000%, 8/15/42 (UB) 1,995 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 1,283,403 Assessment Bonds, Series 2006, 5.400%, 5/01/37 2,000 Westchester Community Development District 1, Florida, Special 5/13 at 101.00 N/R 1,554,640 Assessment Bonds, Series 2003, 6.000%, 5/01/23 1,250 Wyndam Park Community Development District, Florida, Special 5/13 at 101.00 A 1,267,275 Assessment Bonds, Series 2003, 6.375%, 5/01/34 ------------------------------------------------------------------------------------------------------------------------------------ 33,400 Total Florida 30,472,231 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 4.9% (3.2% OF TOTAL INVESTMENTS) 10,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 A+ (4) 10,189,700 Series 2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) - FGIC Insured 2,710 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 2,764,010 2004, 5.000%, 11/01/23 - FSA Insured 1,500 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/19 at 100.00 AAA 1,515,120 2009B, 5.250%, 11/01/34 - FSA Insured 2,000 Dalton Development Authority, Georgia, Revenue Certificates, No Opt. Call A 1,950,620 Hamilton Health Care System Inc., Series 1996, 5.500%, 8/15/26 - NPFG Insured 5,980 Fulton County Development Authority, Georgia, Revenue Bonds, 9/11 at 102.00 N/R 6,145,706 Georgia State University - TUFF/Atlanta Housing LLC, Series 2001A, 5.500%, 9/01/22 - AMBAC Insured 2,250 Georgia Municipal Electric Authority, Project One Special No Opt. Call A+ 2,636,505 Obligation Bonds, Fourth Crossover Series 1997E, 6.500%, 1/01/20 ------------------------------------------------------------------------------------------------------------------------------------ 24,440 Total Georgia 25,201,661 ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 1.7% (1.1% OF TOTAL INVESTMENTS) 4,810 Boise City, Idaho, Revenue Refunding Bonds, Series 2001A, 12/11 at 100.00 Aa3 4,935,204 5.375%, 12/01/31 - NPFG Insured 3,000 Idaho Housing and Finance Association, Single Family Mortgage No Opt. Call Aa3 3,085,260 Revenue Bonds, Series 2009BI, 5.650%, 7/01/26 Madison County, Idaho, Hospital Revenue Certificates of Participation, Madison Memorial Hospital, Series 2006: 500 5.250%, 9/01/26 9/16 at 100.00 BBB- 459,070 500 5.250%, 9/01/30 9/16 at 100.00 BBB- 448,580 ------------------------------------------------------------------------------------------------------------------------------------ 8,810 Total Idaho 8,928,114 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 25 NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 10.7% (6.9% OF TOTAL INVESTMENTS) $ 4,705 Bourbonnais, Illinois, Revenue Bonds, Olivet Nazarene 3/10 at 101.00 BBB- (4) $ 4,843,280 University, Series 2000, 6.250%, 3/01/20 (Pre-refunded 3/01/10) - RAAI Insured 4,775 Chicago Public Building Commission, Illinois, General 3/13 at 100.00 N/R (4) 5,363,567 Obligation Lease Bonds, Chicago Transit Authority, Series 2003, 5.250%, 3/01/23 (Pre-refunded 3/01/13) - AMBAC Insured 2,110 Illinois Development Finance Authority, Local Government 1/11 at 100.00 Aa2 (4) 2,233,203 Program Revenue Bonds, DuPage and Cook Counties Community Unit School District 205 - Elmhurst, Series 2000, 6.000%, 1/01/19 (Pre-refunded 1/01/11) - FSA Insured 1,120 Illinois Finance Authority Revenue Bonds, Rush University 5/19 at 100.00 A- 1,212,288 Medical Center Obligated Group, Series 2009C, 6.625%, 11/01/39 Illinois Finance Authority, Revenue Bonds, OSF Healthcare System, Series 2004: 2,500 5.250%, 11/15/21 5/14 at 100.00 A 2,516,975 1,000 5.250%, 11/15/22 5/14 at 100.00 A 1,002,780 395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 328,356 Series 2006, 5.125%, 1/01/25 1,000 Illinois Finance Authority, Revenue Bonds, Provena Health, 8/19 at 100.00 BBB+ 1,124,880 Series 2009A, 7.750%, 8/15/34 Illinois Finance Authority, Revenue Bonds, Silver Cross Hospital and Medical Centers, Series 2009: 2,000 6.875%, 8/15/38 8/19 at 100.00 BBB 2,102,220 3,000 7.000%, 8/15/44 8/19 at 100.00 BBB 3,157,620 2,600 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 2,882,074 Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded 5/15/12) 12,725 Kane, Cook and DuPage Counties School District 46, Elgin, No Opt. Call Aa3 14,461,835 Illinois, General Obligation School Bonds, Series 1997, 7.800%, 1/01/12 - FSA Insured 5,000 Madison County Community Unit School District 7, No Opt. Call N/R (4) 5,500,850 Edwardsville, Illinois, School Building Bonds, Series 1994, 5.850%, 2/01/13 - FGIC Insured (ETM) 6,015 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call A 3,321,964 Refunding Bonds, McCormick Place Expansion Project, Series 1996A, 0.000%, 12/15/21 - NPFG Insured Will County High School District 204, Joliet, Illinois, General Obligation Bonds, Series 2001: 1,145 8.700%, 12/01/13 - FSA Insured No Opt. Call AAA 1,444,269 1,300 8.700%, 12/01/14 - FSA Insured No Opt. Call AAA 1,686,698 1,180 Will County School District 17, Channahon, Illinois, General No Opt. Call A2 1,473,018 Obligation School Building Bonds, Series 2001, 8.400%, 12/01/13 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 52,570 Total Illinois 54,655,877 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.5% (2.2% OF TOTAL INVESTMENTS) 5,530 Allen County Jail Building Corporation, Indiana, First 4/11 at 101.00 N/R (4) 5,987,165 Mortgage Bonds, Series 2000, 5.750%, 4/01/20 (Pre-refunded 4/01/11) 1,000 Indiana Finance Authority Health System Revenue Bonds Series 11/19 at 100.00 Aa3 976,380 2009A (Sisters of St. Francis Health Services, Inc. Obligated Group), 5.250%, 11/01/39 (WI/DD, Settling 11/05/09) 1,880 Indianapolis, Indiana, GNMA Collateralized Multifamily 7/10 at 102.00 Aaa 1,930,497 Housing Mortgage Revenue Bonds, Cloverleaf Apartments Project Phase I, Series 2000, 6.000%, 1/20/31 2,495 Shelbyville, Indiana, GNMA Collateralized Multifamily Housing 7/10 at 102.00 Aaa 2,561,317 Revenue Bonds, Blueridge Terrace Project, Series 2000, 6.050%, 1/20/36 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, Madison Center Inc., Series 2005: 1,550 5.250%, 2/15/23 2/15 at 100.00 BB+ 1,341,789 2,500 5.375%, 2/15/34 2/15 at 100.00 BB+ 1,979,700 2,765 Wayne County Jail Holding Corporation, Indiana, First 1/13 at 101.00 A3 (4) 3,160,754 Mortgage Bonds, Series 2001, 5.750%, 7/15/14 (Pre-refunded 1/15/13) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 17,720 Total Indiana 17,937,602 ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.3% (0.8% OF TOTAL INVESTMENTS) 800 Iowa Finance Authority, Health Facilities Revenue Bonds, Iowa 8/19 at 100.00 Aa2 825,760 Health System, Series 2009, 5.625%, 8/15/37 - AGC Insured 8,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 5,835,360 Revenue Bonds, Series 2005C, 5.500%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ 8,800 Total Iowa 6,661,120 ------------------------------------------------------------------------------------------------------------------------------------
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.0% (0.6% OF TOTAL INVESTMENTS) $ 1,000 Kansas Development Finance Authority, Health Facilities 11/15 at 100.00 A2 $ 1,013,500 Revenue Bonds, Hays Medical Center Inc., Series 2005L, 5.000%, 11/15/22 425 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed No Opt. Call Aaa 460,326 Securities Program Single Family Revenue Bonds, Series 1997A-1, 6.950%, 6/01/29 (Alternative Minimum Tax) 2,865 Topeka, Kansas, Industrial Revenue Refunding Bonds, Sunwest 8/16 at 100.00 AAA 3,647,145 Hotel Corporation, Series 1988, 9.500%, 10/01/16 (Pre-refunded 8/15/16) (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,290 Total Kansas 5,120,971 ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,000 Jefferson County, Kentucky, Health Facilities Revenue 1/10 at 100.00 A 2,001,160 Refunding Bonds, Jewish Hospital HealthCare Services Inc., Series 1996, 5.700%, 1/01/21 - AMBAC Insured 510 Louisville and Jefferson County Metropolitan Government, 10/16 at 100.00 N/R 460,025 Kentucky, Industrial Building Revenue Bonds, Sisters of Mercy of the Americas, Series 2006, 5.000%, 10/01/35 ------------------------------------------------------------------------------------------------------------------------------------ 2,510 Total Kentucky 2,461,185 ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 1.7% (1.1% OF TOTAL INVESTMENTS) 625 East Baton Rouge Mortgage Finance Authority, Louisiana, 4/10 at 101.00 Aaa 639,913 GNMA/FNMA Mortgage-Backed Securities Program Family Mortgage Revenue Refunding Bonds, Series 1997D, 5.900%, 10/01/30 (Alternative Minimum Tax) Jefferson Parish Home Mortgage Authority, Louisiana, Single Family Mortgage Revenue Bonds, Series 2000G-2: 480 5.550%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 485,539 695 6.300%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 723,453 300 Jefferson Parish Home Mortgage Authority, Louisiana, Single 12/09 at 103.00 Aaa 320,169 Family Mortgage Revenue Refunding Bonds, Series 2000A-2, 7.500%, 12/01/30 (Alternative Minimum Tax) 1,000 Louisiana Local Government Environmental Facilities & 11/17 at 100.00 BB 964,990 Community Development Authority, Revenue Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32 3,000 Louisiana Public Facilities Authority, Hospital Revenue 8/15 at 100.00 A+ 2,969,040 Bonds, Franciscan Missionaries of Our Lady Health System, Series 2005A, 5.250%, 8/15/31 2,500 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 2,350,600 Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47 ------------------------------------------------------------------------------------------------------------------------------------ 8,600 Total Louisiana 8,453,704 ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,500 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A2 2,577,950 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.5% (2.2% OF TOTAL INVESTMENTS) 4,795 Massachusetts Development Financing Authority, Assisted 12/09 at 102.00 N/R 4,532,857 Living Revenue Bonds, Prospect House Apartments, Series 1999, 7.000%, 12/01/31 1,105 Massachusetts Health and Educational Facilities Authority, 1/11 at 100.00 BBB 1,082,801 Revenue Bonds, Caritas Christi Obligated Group, Series 1999A, 5.625%, 7/01/20 1,875 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB+ 1,906,125 Revenue Bonds, UMass Memorial Health Care, Series 2001C, 6.500%, 7/01/21 2,030 Massachusetts Industrial Finance Agency, Resource Recovery 12/09 at 101.00 BBB 1,818,576 Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) 5,100 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 5,509,581 Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured (UB) 3,120 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 2,883,660 Bonds, Tender Option Bond, Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 18,025 Total Massachusetts 17,733,600 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 4.1% (2.7% OF TOTAL INVESTMENTS) 4,250 Detroit City School District, Wayne County, Michigan, 5/12 at 100.00 AAA 4,710,615 Unlimited Tax School Building and Site Improvement Bonds, Series 2001A, 5.500%, 5/01/20 (Pre-refunded 5/01/12) - FSA Insured 10,215 Detroit, Michigan, Water Supply System Revenue Refunding No Opt. Call A+ 11,603,627 Bonds, Series 1993, 6.500%, 7/01/15 - FGIC Insured
Nuveen Investments 27 NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN (continued) $ 1,350 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 A+ $ 1,387,247 Program, Series 2005II, 5.000%, 10/15/22 - AMBAC Insured 1,240 Michigan State Hospital Finance Authority, Hospital Revenue 11/19 at 100.00 A1 1,197,046 Bonds, Henry Ford Health System, Refunding Series 2009, 5.750%, 11/15/39 (WI/DD, Settling 11/03/09) 2,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 1,997,260 Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31 (UB) 340 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 262,776 Memorial Hospital Corporation Revenue Bonds, Series 2006, 5.500%, 6/01/35 ------------------------------------------------------------------------------------------------------------------------------------ 19,395 Total Michigan 21,158,571 ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 7.4% (4.8% OF TOTAL INVESTMENTS) 2,750 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A2 2,773,293 Inc., Series 2004, 4.950%, 7/01/22 5,000 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 7,026,400 Authority, Minnesota, GNMA Mortgage-Backed Securities Program Single Family Residential Mortgage Revenue Bonds, Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) (ETM) 620 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A 632,586 Healthcare System Revenue Bonds, Fairview Hospital and Healthcare Services, Series 2000A, 6.375%, 11/15/29 19,380 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A (4) 20,780,782 Healthcare System Revenue Bonds, Fairview Hospital and Healthcare Services, Series 2000A, 6.375%, 11/15/29 (Pre-refunded 11/15/10) 1,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 BB+ 962,150 Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25 6,280 Washington County, Minnesota, General Obligation Bonds, 8/17 at 100.00 AAA 5,704,438 Capital Improvement Plan, Series 2007A, 3.500%, 2/01/28 ------------------------------------------------------------------------------------------------------------------------------------ 35,030 Total Minnesota 37,879,649 ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,275 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 2,316,883 Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%, 9/01/24 (UB) ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.7% (1.1% OF TOTAL INVESTMENTS) 2,000 Hanley Road Corridor Transportation Development District, 10/19 at 100.00 A- 2,021,600 Brentwood and Maplewood, Missouri, Transportation Sales Revenue Bonds, Series 2009, 5.875%, 10/01/36 200 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 191,114 Facilities Revenue Bonds, Hannibal Regional Hospital, Series 2006, 5.000%, 3/01/22 1,000 Jackson County Reorganized School District R-7, Lees Summit, 3/16 at 100.00 Aa2 1,066,990 Missouri, General Obligation Bonds, Series 2006, 5.250%, 3/01/26 - NPFG Insured Missouri Development Finance Board, Infrastructure Facilities Revenue Bonds, Branson Landing Project, Series 2005A: 780 6.000%, 6/01/20 No Opt. Call A 833,547 1,525 5.000%, 6/01/35 6/15 at 100.00 A 1,367,025 2,985 Missouri Development Finance Board. Infrastructure Facilities 4/14 at 100.00 A+ 3,041,178 Revenue Bonds, City of Independence, Missouri - Events Center Project, Series 2009F, 6.250%, 4/01/38 ------------------------------------------------------------------------------------------------------------------------------------ 8,490 Total Missouri 8,521,454 ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 2.4% (1.5% OF TOTAL INVESTMENTS) 11,215 Lincoln, Nebraska, Electric System Revenue Bonds, Series 9/17 at 100.00 AA 10,618,250 2007A, 4.500%, 9/01/37 - FGIC Insured (UB) 1,595 NebHelp Inc., Nebraska, Revenue Bonds, Student Loan Program, 3/10 at 100.00 N/R 1,597,584 Series 1993B, 5.875%, 6/01/14 - NPFG Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 12,810 Total Nebraska 12,215,834 ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 3.3% (2.1% OF TOTAL INVESTMENTS) 11,000 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AA (4) 12,263,020 Bonds, Series 2002C, 5.500%, 6/15/19 (Pre-refunded 6/15/12) - NPFG Insured 14,530 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 Caa2 2,978,795 Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.625%, 1/01/34 - AMBAC Insured
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEVADA (continued) $ 1,600 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A $ 1,796,368 Bonds, Series 2009A, 8.000%, 6/15/30 ------------------------------------------------------------------------------------------------------------------------------------ 27,130 Total Nevada 17,038,183 ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.2% (0.1% OF TOTAL INVESTMENTS) 945 New Hampshire Housing Finance Authority, Single Family 7/17 at 100.00 Aa2 964,751 Residential Mortgage Bonds, Series 2007-E, 5.750%, 1/01/37 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.5% (1.6% OF TOTAL INVESTMENTS) New Jersey Economic Development Authority, School Facilities Construction Bonds, Series 2005P: 1,325 5.250%, 9/01/24 9/15 at 100.00 AA- 1,395,570 1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 1,046,940 600 New Jersey Educational Facilities Authority Revenue Refunding 6/19 at 100.00 Baa2 677,928 Bonds, University of Medicine and Dentistry of New Jersey Issue, Series 2009 B, 7.500%, 12/01/32 680 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 663,394 Jersey, Revenue Bonds, Saint Peters University Hospital, Series 2007, 5.750%, 7/01/37 665 New Jersey Higher Education Assistance Authority, Student 6/19 at 100.00 AA 775,882 Loan Revenue Bonds, Tender Option Bond Trust PA-4643, 19.377%, 6/01/30 (IF) 3,425 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 3,810,484 Transportation System Bonds, Series 2006A, 5.250%, 12/15/20 700 New Jersey Turnpike Authority, Revenue Bonds, Series 2009E, 1/19 at 100.00 A+ 733,684 5.250%, 1/01/40 1,380 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 1,500,226 Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 (Pre-refunded 6/01/12) 3,250 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 2,272,530 Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%, 6/01/34 ------------------------------------------------------------------------------------------------------------------------------------ 13,025 Total New Jersey 12,876,638 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.6% (0.4% OF TOTAL INVESTMENTS) 1,000 Albuquerque, New Mexico, Gross Receipts Lodgers Tax Revenue 7/14 at 100.00 AAA 1,015,310 Refunding Bonds, Series 2004A, 5.000%, 7/01/37 - FSA Insured Farmington, New Mexico, Hospital Revenue Bonds, San Juan Regional Medical Center Inc., Series 2004A: 880 5.125%, 6/01/17 6/14 at 100.00 A3 910,633 1,295 5.125%, 6/01/19 6/14 at 100.00 A3 1,324,384 ------------------------------------------------------------------------------------------------------------------------------------ 3,175 Total New Mexico 3,250,327 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 16.5% (10.6% OF TOTAL INVESTMENTS) 1,665 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 1,748,516 Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 - AMBAC Insured 4,055 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 3,419,379 Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured 3,000 Long Island Power Authority, New York, Electric System 11/16 at 100.00 A 2,711,730 Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured 1,000 Metropolitan Transportation Authority, New York, Dedicated 11/19 at 100.00 AA 1,029,420 Tax Fund Bonds, Series 2009B, 5.000%, 11/15/34 2,250 Metropolitan Transportation Authority, New York, 11/15 at 100.00 A 2,280,375 Transportation Revenue Bonds, Series 2005B, 5.000%, 11/15/30 - AMBAC Insured 3,200 Metropolitan Transportation Authority, New York, 11/15 at 100.00 A 3,243,200 Transportation Revenue Bonds, Series 2005F, 5.000%, 11/15/30 7,800 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 8,121,204 Water and Sewerage System Revenue Bonds, Fiscal Series 2005B, 5.000%, 6/15/28 - AMBAC Insured 500 New York City Municipal Water Finance Authority, New York, 6/19 at 100.00 AA+ 555,290 Water and Sewerage System Revenue Bonds, Tender Option Bond Trust 3484, 17.805%, 6/15/39 (IF) 5,570 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 5,901,248 Future Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/22 (UB) 1,745 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AA 1,914,021 Series 2003J, 5.500%, 6/01/20
Nuveen Investments 29 NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 3,255 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AA (4) $ 3,724,436 Series 2003J, 5.500%, 6/01/20 (Pre-refunded 6/01/13) 4,200 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AA 4,342,674 Series 2005J, 5.000%, 3/01/25 7,000 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA 7,251,510 Series 2005M, 5.000%, 4/01/24 (UB) 5,000 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 5,282,950 2004C-1, 5.250%, 8/15/20 (UB) 5,000 New York State Municipal Bond Bank Agency, Special School 6/13 at 100.00 A+ 5,327,250 Purpose Revenue Bonds, Series 2003C, 5.250%, 12/01/19 5,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 5,473,764 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16 4,205 New York State Urban Development Corporation, State Personal 3/14 at 100.00 AAA 4,391,618 Income Tax Revenue Bonds, Series 2004A-1, 5.000%, 3/15/23 - FGIC Insured 16,445 Port Authority of New York and New Jersey, Special Project No Opt. Call A 17,704,851 Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 7.000%, 12/01/12 - NPFG Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 81,290 Total New York 84,423,436 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.6% (1.0% OF TOTAL INVESTMENTS) 7,420 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101.00 AA (4) 8,130,465 Bonds, Mission St. Joseph's Health System, Series 2001, 5.250%, 10/01/26 (Pre-refunded 10/01/11) ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.3% (0.8% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: 3,155 5.125%, 6/01/24 6/17 at 100.00 BBB 2,810,032 530 5.875%, 6/01/30 6/17 at 100.00 BBB 461,296 525 5.750%, 6/01/34 6/17 at 100.00 BBB 441,499 1,180 5.875%, 6/01/47 6/17 at 100.00 BBB 874,286 1,000 6.500%, 6/01/47 6/17 at 100.00 BBB 809,440 800 Ohio Air Quality Development Authority, Ohio, Air Quality No Opt. Call BBB- 801,224 Revenue Bonds, Ohio Valley Electric Corporation Project, Series 2009E, Non-AMT, 5.625%, 10/01/19 250 Port of Greater Cincinnati Development Authority, Ohio, 10/16 at 100.00 N/R 231,835 Economic Development Revenue Bonds, Sisters of Mercy of the Americas, Series 2006, 5.000%, 10/01/25 ------------------------------------------------------------------------------------------------------------------------------------ 7,440 Total Ohio 6,429,612 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.7% (1.1% OF TOTAL INVESTMENTS) 750 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 668,625 Revenue Bonds, Series 2005, 5.375%, 9/01/36 Oklahoma Development Finance Authority, Revenue Bonds, Saint John Health System, Series 2007: 1,900 5.000%, 2/15/37 2/17 at 100.00 A 1,820,751 990 5.000%, 2/15/42 2/17 at 100.00 A 934,035 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) 5,280 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 5,089,920 Revenue Bonds, Saint Francis Health System, Series 2006, 5.000%, 12/15/36 (UB) ------------------------------------------------------------------------------------------------------------------------------------ 9,008 Total Oklahoma 8,595,570 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.9% (1.9% OF TOTAL INVESTMENTS) 2,000 Allegheny County Hospital Development Authority, 8/19 at 100.00 Aa3 2,015,740 Pennsylvania, University of Pittsburgh Medical Center Revenue Bonds, Series 2009A, 5.375%, 8/15/29 500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 412,305 Charter School Revenue Bonds, School Lane Charter School, Series 2007A, 5.000%, 3/15/37 3,000 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA 3,131,460 Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 - FSA Insured (UB) 1,500 Pennsylvania Economic Development Financing Authority Health No Opt. Call A3 1,572,435 System Revenue Bonds Albert Einstein Healthcare Network Issue, Series 2009A, 6.250%, 10/15/23 5,125 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 4,741,086 Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB)
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA (continued) $ 1,750 Philadelphia Hospitals and Higher Education Facilities 11/09 at 100.00 BBB $ 1,750,630 Authority, Pennsylvania, Hospital Revenue Bonds, Temple University Hospital, Series 1993A, 6.625%, 11/15/23 1,000 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 1,167,470 Revenue Bonds, Catholic Health East, Series 2004B, 5.500%, 11/15/24 (Pre-refunded 11/15/14) ------------------------------------------------------------------------------------------------------------------------------------ 14,875 Total Pennsylvania 14,791,126 ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 1.6% (1.0% OF TOTAL INVESTMENTS) 1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,586,880 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 1,225 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call BBB- 1,218,630 8/01/21 - CIFG Insured Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A: 1,100 6.375%, 8/01/39 8/19 at 100.00 A+ 1,189,914 2,000 6.000%, 8/01/42 8/19 at 100.00 A+ 2,100,700 14,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 2,030,280 Revenue Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 19,825 Total Puerto Rico 8,126,404 ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 1.3% (0.9% OF TOTAL INVESTMENTS) 2,410 Rhode Island Health and Educational Building Corporation, 11/09 at 100.00 A 2,410,844 Hospital Financing Revenue Bonds, Lifespan Obligated Group, Series 1996, 5.750%, 5/15/23 - NPFG Insured 4,315 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 4,350,599 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.000%, 6/01/23 ------------------------------------------------------------------------------------------------------------------------------------ 6,725 Total Rhode Island 6,761,443 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 2.6% (1.7% OF TOTAL INVESTMENTS) 2,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,043,360 Purchase Revenue Bonds, Securing Assets for Education, Series 2003, 5.250%, 12/01/24 4,405 Dorchester County School District 2, South Carolina, 12/14 at 100.00 AA- 4,581,949 Installment Purchase Revenue Bonds, GROWTH, Series 2004, 5.250%, 12/01/23 1,355 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A3 (4) 1,532,464 Development Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12) 5,145 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 5,184,102 Development Revenue Bonds, Bon Secours Health System Inc., Series 2002B, 5.625%, 11/15/30 ------------------------------------------------------------------------------------------------------------------------------------ 12,905 Total South Carolina 13,341,875 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,776,705 Revenue Bonds, Sioux Valley Hospitals, Series 2004A, 5.500%, 11/01/31 ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 2.8% (1.8% OF TOTAL INVESTMENTS) 3,200 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 3,108,256 Tennessee, Revenue Bonds, Mountain States Health Alliance, Series 2006A, 5.500%, 7/01/36 5,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 5,115,950 Tennessee, Hospital Revenue Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.500%, 4/15/31 5,000 Metropolitan Government of Nashville-Davidson County Health 10/19 at 100.00 AA 5,224,550 and Educational Facilities Board, Tennessee, Revenue Refunding Bonds, Vanderbilt University, Series 2009B, 5.000%, 10/01/39 Sumner County Health, Educational, and Housing Facilities Board, Tennessee, Revenue Refunding Bonds, Sumner Regional Health System Inc., Series 2007: 700 5.500%, 11/01/37 11/17 at 100.00 N/R 266,070 1,200 5.500%, 11/01/46 11/17 at 100.00 N/R 456,120 ------------------------------------------------------------------------------------------------------------------------------------ 15,100 Total Tennessee 14,170,946 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 31 NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 15.4% (9.8% OF TOTAL INVESTMENTS) $ 3,060 Austin Housing Finance Corporation, Texas, GNMA 12/10 at 105.00 Aaa $ 3,261,776 Collateralized Mortgage Loan Multifamily Housing Revenue Bonds, Santa Maria Village Project, Series 2000A, 7.375%, 6/20/35 (Alternative Minimum Tax) 5,000 Board of Regents, University of Texas System, Financing 2/17 at 100.00 AAA 4,757,650 System Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB) 635 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 642,664 Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds, Series 2000, 5.500%, 2/15/22 18,075 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 18,350,282 Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds, Series 2000, 5.500%, 2/15/22 (Pre-refunded 2/15/10) 1,520 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call A1 1,543,864 Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured 185 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call A1 (4) 188,404 Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM) 2,242 Heart of Texas Housing Finance Corporation, GNMA 6/10 at 105.00 Aaa 2,374,323 Collateralized Mortgage Loan Revenue Bonds, Robinson Garden Project, Series 2000A, 7.375%, 6/20/35 (Alternative Minimum Tax) 11,950 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 6,815,922 Refunding Bonds, Series 1998A, 0.000%, 12/01/22 - FSA Insured (ETM) 4,680 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 2,558,930 Refunding Bonds, Series 1998A, 0.000%, 12/01/22 - FSA Insured Kerrville Health Facilities Development Corporation, Texas, Revenue Bonds, Sid Peterson Memorial Hospital Project, Series 2005: 800 5.250%, 8/15/21 No Opt. Call BBB- 772,656 1,220 5.125%, 8/15/26 No Opt. Call BBB- 1,115,141 1,100 North Texas Thruway Authority, First Tier System Revenue 1/18 at 100.00 AAA 1,159,213 Refunding Bonds, Series 2008A, 5.750%, 1/01/40 - AGC Insured 3,150 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 3,186,540 Refunding Bonds, Series 2008, 5.750%, 1/01/38 1,100 North Texas Tollway Authority, System Revenue Bonds, Series 1/19 at 100.00 A2 1,153,845 2009, 6.250%, 1/01/39 2,000 Port of Bay City Authority of Matagorda County, Texas, 11/09 at 100.00 B+ 1,977,500 Revenue Bonds (Hoechst Celanese Corporation Project) Series 1996, 6.500%, 5/01/26 (WI/DD, Settling 11/02/09) (Alternative Minimum Tax) 1,000 Sabine River Authority, Texas, Pollution Control Revenue 11/15 at 100.00 CCC 446,940 Bonds, TXU Electric Company, Series 2001C, 5.200%, 5/01/28 3,960 Stafford Economic Development Corporation, Texas, Sales Tax 9/15 at 100.00 A+ 4,074,998 Revenue Bonds, Series 2000, 5.500%, 9/01/30 - FGIC Insured 7,500 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 7,233,675 Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%, 2/15/36 (UB) 3,030 Tarrant County Health Facilities Development Corporation, 12/10 at 105.00 Aaa 3,240,252 Texas, GNMA Collateralized Mortgage Loan Revenue Bonds, Eastview Nursing Home, Ebony Lake Nursing Center, Ft. Stockton Nursing Center, Lynnhaven Nursing Center and Mission Oaks Manor, Series 2000A-1, 7.500%, 12/20/22 650 Texas Municipal Gas Acquisition and Supply Corporation I, Gas No Opt. Call A 677,261 Supply Revenue Bonds, Senior Lien Series 2008D, 6.250%, 12/15/26 Texas Turnpike Authority, First Tier Revenue Bonds, Central Texas Turnpike System, Series 2002A: 10,000 0.000%, 8/15/21 - AMBAC Insured No Opt. Call BBB+ 5,269,800 12,000 0.000%, 8/15/23 - AMBAC Insured No Opt. Call BBB+ 5,521,080 2,500 Tomball Hospital Authority, Texas, Hospital Revenue Bonds, 7/15 at 100.00 Baa3 2,242,875 Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20 ------------------------------------------------------------------------------------------------------------------------------------ 97,357 Total Texas 78,565,591 ------------------------------------------------------------------------------------------------------------------------------------
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ VIRGIN ISLANDS - 0.2% (0.1% OF TOTAL INVESTMENTS) $ 820 Virgin Islands Public Finance Authority, Matching Fund 10/19 at 100.00 BBB $ 864,854 Revenue Loan Note - Diageo Project, Series 2009A, 6.750%, 10/01/37 ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.5% (0.3% OF TOTAL INVESTMENTS) 1,000 Amherst Industrial Development Authority, Virginia, Revenue 9/16 at 100.00 BBB 944,430 Bonds, Sweet Briar College, Series 2006, 5.000%, 9/01/26 1,870 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 102.00 N/R 1,782,409 Residential Rental Housing Revenue Bonds, Hamptons and Hampton Court Apartments, Series 1999, 7.500%, 10/01/39 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,870 Total Virginia 2,726,839 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 6.0% (3.8% OF TOTAL INVESTMENTS) 11,345 Chelan County Public Utility District 1, Washington, Columbia No Opt. Call AA 7,481,233 River-Rock Island Hydro-Electric System Revenue Refunding Bonds, Series 1997A, 0.000%, 6/01/19 - NPFG Insured 17,075 Port of Seattle, Washington, General Obligation Bonds, Series 12/10 at 100.00 AAA 17,202,550 2000B, 5.750%, 12/01/25 (Alternative Minimum Tax) (UB) 5,000 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 Aa2 5,120,900 5.625%, 4/01/17 - FGIC Insured (Alternative Minimum Tax) (UB) 1,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 800,090 Bonds, Northwest Hospital and Medical Center of Seattle, Series 2007, 5.700%, 12/01/32 ------------------------------------------------------------------------------------------------------------------------------------ 34,420 Total Washington 30,604,773 ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 1.2% (0.8% OF TOTAL INVESTMENTS) 3,550 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 3,581,950 Appalachian Power Company, Series 2003L, 5.500%, 10/01/22 1,950 West Virginia Hospital Finance Authority, Hospital Revenue 9/19 at 100.00 A2 1,923,929 Bonds, Charleston Area Medical Center, Series 2009A, 5.625%, 9/01/32 1,000 West Virginia Hospital Finance Authority Hospital Revenue 10/18 at 100.00 N/R 894,260 Bonds (Thomas Health System, Inc.) Series 2008, 6.500%, 10/01/38 ------------------------------------------------------------------------------------------------------------------------------------ 6,500 Total West Virginia 6,400,139 ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 3.7% (2.4% OF TOTAL INVESTMENTS) 4,830 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 AAA 5,277,789 Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 (Pre-refunded 6/01/12) 315 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 258,577 Revenue Bonds, Divine Savior Healthcare, Series 2006, 5.000%, 5/01/32 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Eagle River Memorial Hospital Inc., Series 2000: 1,000 5.750%, 8/15/20 - RAAI Insured 8/10 at 101.00 BBB- 1,004,760 3,000 5.875%, 8/15/30 - RAAI Insured 8/10 at 101.00 BBB- 2,934,570 1,150 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 1,134,441 Revenue Bonds, Fort Healthcare Inc., Series 2004, 5.750%, 5/01/24 4,000 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 BBB+ 3,409,640 Revenue Bonds, Wheaton Franciscan Healthcare System, Series 2006, 5.250%, 8/15/34 4,600 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AA 4,768,360 4.750%, 5/01/25 - FGIC Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 18,895 Total Wisconsin 18,788,137 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 33 NQM | Nuveen Investment Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.8% (0.5% OF TOTAL INVESTMENTS) $ 1,720 Sweetwater County, Wyoming, Pollution Control Revenue 8/19 at 100.00 A- $ 1,790,004 Refunding Bonds, Idaho Power Company Project, Series 2006, 5.250%, 7/15/26 (Mandatory put 7/14/26) 2,500 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB+ 2,350,074 Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,220 Total Wyoming 4,140,078 ------------------------------------------------------------------------------------------------------------------------------------ $ 874,815 Total Investments (cost $789,781,632) - 156.2% 798,173,885 ===============--------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (18.3)% (93,377,000) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 3.3% 16,813,335 ------------------------------------------------------------------------------------------------------------------ Preferred Shares, at Liquidation Value - (41.2)% (5) (210,700,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 510,910,220 ==================================================================================================================
(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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 26.4%. 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. 34 Nuveen Investments NQS | Nuveen Select Quality Municipal Fund, Inc. | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 2.8% (1.9% OF TOTAL INVESTMENTS) $ 10,000 Lauderdale County and Florence Health Authority, Alabama, 7/10 at 102.00 A $ 9,374,600 Revenue Bonds, Coffee Health Group, Series 2000A, 6.000%, 7/01/29 - 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) ------------------------------------------------------------------------------------------------------------------------------------ 15,155 Total Alabama 13,716,708 ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.0% (0.6% OF TOTAL INVESTMENTS) 500 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 514,440 Bonds, Series 2005A, 5.000%, 12/01/26 - FGIC Insured (UB) 2,000 Kenai Peninsula Borough, Alaska, Revenue Bonds, Central Kenai 8/13 at 100.00 A3 2,045,820 Peninsula Hospital Service Area, Series 2003, 5.000%, 8/01/23 - FGIC Insured 2,315 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 2,126,976 Settlement Asset-Backed Bonds, Series 2006A, 4.625%, 6/01/23 ------------------------------------------------------------------------------------------------------------------------------------ 4,815 Total Alaska 4,687,236 ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 2.9% (1.9% OF TOTAL INVESTMENTS) 2,300 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 2,315,939 Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/33 3,750 Salt River Project Agricultural Improvement and Power 12/13 at 100.00 Aa2 3,955,163 District, Arizona, Electric System Revenue Bonds, Series 2003, 5.000%, 12/01/18 - NPFG Insured 8,000 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 6,842,800 Bonds, Series 2007, 5.000%, 12/01/37 750 Scottsdale Industrial Development Authority, Arizona, 9/13 at 100.00 A3 743,378 Hospital Revenue Bonds, Scottsdale Healthcare, Series 2008A, 5.250%, 9/01/30 ------------------------------------------------------------------------------------------------------------------------------------ 14,800 Total Arizona 13,857,280 ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.1% (0.7% OF TOTAL INVESTMENTS) 4,500 Little Rock, Arkansas, Hotel and Restaurant Gross Receipts No Opt. Call A3 5,163,885 Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 5.3% (3.5% OF TOTAL INVESTMENTS) Calexico Unified School District, Imperial County, California, General Obligation Bonds, Series 2005B: 3,685 0.000%, 8/01/31 - FGIC Insured No Opt. Call A 949,772 4,505 0.000%, 8/01/33 - FGIC Insured No Opt. Call A 1,019,121 1,110 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 930,524 Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 5.000%, 6/01/26 550 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 A 567,122 Revenue Bonds, Pacific Gas and Electric Company, Series 1996A, 5.350%, 12/01/16 - NPFG Insured (Alternative Minimum Tax) 1,550 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 1,599,259 Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 - FGIC Insured 1,000 Coachella Valley Unified School District, Riverside County, No Opt. Call A 281,020 California, General Obligation Bonds, Series 2005A, 0.000%, 8/01/30 - FGIC Insured Colton Joint Unified School District, San Bernardino County, California, General Obligation Bonds, Series 2006C: 3,200 0.000%, 2/01/30 - FGIC Insured 2/15 at 45.69 A+ 839,552 6,800 0.000%, 2/01/35 - FGIC Insured 2/15 at 34.85 A+ 1,229,712 Cupertino Union School District, Santa Clara County, California, General Obligation Bonds, Series 2003B: 8,100 0.000%, 8/01/24 - FGIC Insured 8/13 at 58.68 AA 3,528,927 11,430 0.000%, 8/01/27 - FGIC Insured 8/13 at 49.98 AA 4,060,165 7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 4,090,170 Enhanced Tobacco Settlement Revenue Bonds, Residual Series 2040, 10.380%, 6/01/45 - FGIC Insured (IF) 1,045 Lake Tahoe Unified School District, El Dorado County, No Opt. Call A2 257,185 California, General Obligation Bonds, Series 2001B, 0.000%, 8/01/31 - NPFG Insured
Nuveen Investments 35 NQS | Nuveen Select Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 6,000 Placentia-Yorba Linda Unified School District, Orange County, No Opt. Call A+ $ 1,277,760 California, Certificates of Participation, Series 2006, 0.000%, 10/01/34 - FGIC Insured 5,000 Riverside County Asset Leasing Corporation, California, No Opt. Call A 2,026,250 Leasehold Revenue Bonds, Riverside County Hospital Project, Series 1997, 0.000%, 6/01/25 - NPFG Insured 5,000 Santa Monica Community College District, Los Angeles County, No Opt. Call AA 1,890,700 California, General Obligation Bonds, Series 2005C, 0.000%, 8/01/26 - NPFG Insured 2,460 Santee School District, County, California, General No Opt. Call AAA 586,243 Obligation Bonds, Capital Appreciation, Election 2006, Series 2008D, 0.000%, 8/01/33 - AGC Insured 2,000 Yuma Community College District, California, General 8/17 at 45.45 A1 455,900 Obligation Bonds, Series 2007B, 0.000%, 8/01/33 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 70,435 Total California 25,589,382 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 11.3% (7.4% OF TOTAL INVESTMENTS) 11,000 Colorado Department of Transportation, Revenue Anticipation 6/10 at 100.50 Aaa 11,443,190 Bonds, Series 2000, 6.000%, 6/15/15 (Pre-refunded 6/15/10) - AMBAC Insured 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, Poudre 9/18 at 102.00 AAA 1,151,990 Valley Health System, Series 2005C, 5.250%, 3/01/40 - FSA Insured 16,995 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 A+ 17,039,526 Refunding Bonds, Series 2000A, 5.625%, 11/15/23 - AMBAC Insured (Alternative Minimum Tax) 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) 1,500 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 BBB- 1,194,120 Revenue Bonds, Convention Center Hotel, Series 2006, 4.625%, 12/01/30 - SYNCORA GTY Insured E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 1997B: 1,420 0.000%, 9/01/23 - NPFG Insured No Opt. Call A 586,034 8,515 0.000%, 9/01/25 - NPFG Insured No Opt. Call A 3,059,099 13,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/20 at 45.40 A 2,381,340 Series 2004B, 0.000%, 9/01/34 - NPFG Insured 5,000 Ebert Metropolitan District, Colorado, Limited Tax General 12/17 at 100.00 BBB- 4,498,650 Obligation Bonds, Series 2007, 5.350%, 12/01/37 - RAAI Insured 12,355 Northwest Parkway Public Highway Authority, Colorado, Senior 6/11 at 40.52 AAA 4,888,997 Lien Revenue Bonds, Series 2001B, 0.000%, 6/15/26 (Pre-refunded 6/15/11) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 78,770 Total Colorado 54,246,280 ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 2.7% (1.8% OF TOTAL INVESTMENTS) District of Columbia Tobacco Settlement Corporation, Tobacco Settlement Asset-Backed Bonds, Series 2001: 2,405 6.250%, 5/15/24 5/11 at 101.00 BBB 2,411,061 5,135 6.500%, 5/15/33 No Opt. Call BBB 4,863,204 5,000 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call A+ 5,860,450 6.000%, 6/01/19 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,540 Total District of Columbia 13,134,715 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 3.7% (2.5% OF TOTAL INVESTMENTS) Lee County, Florida, Airport Revenue Bonds, Series 2000A: 3,075 5.875%, 10/01/18 - FSA Insured (Alternative Minimum Tax) 10/10 at 101.00 AAA 3,140,651 4,860 5.875%, 10/01/19 - FSA Insured (Alternative Minimum Tax) 10/10 at 101.00 AAA 4,957,346 9,250 Port Saint Lucie, Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 A 7,968,320 Southwest Annexation District 1B, Series 2007, 5.000%, 7/01/40 - NPFG Insured 2,500 South Miami Health Facilities Authority, Florida, Revenue 8/17 at 100.00 AA- 1,887,950 Bonds, Baptist Health Systems of South Florida, Series 2007, ROLS 11151, 17.724%, 8/15/42 (IF) ------------------------------------------------------------------------------------------------------------------------------------ 19,685 Total Florida 17,954,267 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.8% (0.5% OF TOTAL INVESTMENTS) 3,750 Atlanta, Georgia, Airport General Revenue Bonds, Series 1/10 at 101.00 A+ 3,751,575 2000B, 5.625%, 1/01/30 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 14.9% (9.8% OF TOTAL INVESTMENTS) Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1: $ 3,855 0.000%, 12/01/25 - FGIC Insured No Opt. Call AA- $ 1,671,721 2,925 0.000%, 12/01/31 - FGIC Insured No Opt. Call AA- 851,000 5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 6,165,464 Alive 21 Program, Series 2000A, 6.500%, 1/01/35 (Pre-refunded 7/01/10) - FGIC Insured 15,000 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 A1 14,191,200 Revenue Bonds, O'Hare International Airport, Series 2001A, 5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O'Hare International Airport, Series 2001C: 3,770 5.100%, 1/01/26 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 3,597,900 5,460 5.250%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 5,081,131 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 3,975 Illinois Finance Authority, Revenue Bonds, Sherman Health 8/17 at 100.00 Baa1 3,637,602 Systems, Series 2007A, 5.500%, 8/01/37 10,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 11,147,300 Medical Center, Series 2002, 5.750%, 5/15/22 (Pre-refunded 5/15/12) 2,000 Illinois Health Facilities Authority, Revenue Bonds, Midwest 2/11 at 102.00 Aaa 2,046,780 Care Center I Inc., Series 2001, 5.950%, 2/20/36 8,945 Lake and McHenry Counties Community Unit School District 118, 1/15 at 74.44 Aa3 5,192,483 Wauconda, Illinois, General Obligation Bonds, Series 2005B, 0.000%, 1/01/21 - FSA Insured 9,000 McHenry County Community Unit School District 200, Woodstock, No Opt. Call Aa3 4,717,350 Illinois, General Obligation Bonds, Series 2006B, 0.000%, 1/15/23 - FGIC Insured Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A: 6,700 0.000%, 12/15/23 - NPFG Insured No Opt. Call AAA 3,253,989 2,920 5.000%, 12/15/28 - NPFG Insured 6/12 at 101.00 AAA 2,981,904 1,100 0.000%, 12/15/35 - NPFG Insured No Opt. Call AAA 254,639 2,455 0.000%, 6/15/41 - NPFG Insured No Opt. Call AAA 412,538 7,500 Valley View Public Schools, Community Unit School District No Opt. Call AA 3,339,675 365U of Will County, Illinois, General Obligation Bonds, Series 2005, 0.000%, 11/01/25 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 94,470 Total Illinois 71,503,416 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.0% (2.0% OF TOTAL INVESTMENTS) 2,000 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 1,607,640 Revenue Bonds, Cardinal Health System, Series 2006, 5.250%, 8/01/36 2,000 Indiana Health Facility Financing Authority, Revenue Bonds, 3/17 at 100.00 BBB 1,907,520 Community Foundation of Northwest Indiana, Series 2007, 5.500%, 3/01/37 765 Indiana Housing Finance Authority, Single Family Mortgage 1/10 at 100.00 Aaa 781,631 Revenue Bonds, Series 2000D-3, 5.950%, 7/01/26 (Alternative Minimum Tax) 2,225 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 2,210,738 Series 2007A, 5.000%, 1/01/42 - NPFG Insured 7,660 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/11 at 100.00 AA- (4) 8,153,917 Memorial Health System, Series 2000, 5.625%, 8/15/33 (Pre-refunded 2/15/11) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 14,650 Total Indiana 14,661,446 ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.5% (0.3% OF TOTAL INVESTMENTS) 3,100 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 2,279,337 Revenue Bonds, Series 2005C, 5.625%, 6/01/46 ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.8% (0.6% OF TOTAL INVESTMENTS) 3,790 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AAA 4,097,672 Series 2004A, 5.000%, 3/01/23 (UB) ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 37 NQS | Nuveen Select Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.2% (0.2% OF TOTAL INVESTMENTS) $ 1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA $ 1,071,950 Arena Project Revenue Bonds, Louisville Arena Authority, Inc., Series 2008A-1, 6.000%, 12/01/33 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 1.0% (0.6% OF TOTAL INVESTMENTS) 5,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 4,627,100 Clinic Foundation Project, Series 2007A, 5.375%, 5/15/43 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.3% (0.2% OF TOTAL INVESTMENTS) 835 Massachusetts Educational Finance Authority, Student Loan 12/09 at 101.00 AA 844,937 Revenue Refunding Bonds, Series 2000G, 5.700%, 12/01/11 - NPFG Insured (Alternative Minimum Tax) 500 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 454,360 Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.125%, 7/01/38 ------------------------------------------------------------------------------------------------------------------------------------ 1,335 Total Massachusetts 1,299,297 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 6.7% (4.4% OF TOTAL INVESTMENTS) 540 Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 BB 459,583 5.250%, 4/01/19 - SYNCORA GTY Insured 10,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 Aaa 10,189,400 Series 1999A, 5.750%, 7/01/26 (Pre-refunded 1/01/10) - FGIC Insured 3,275 Michigan State Hospital Finance Authority, Revenue Refunding 2/10 at 100.00 BB- 3,201,902 Bonds, Detroit Medical Center Obligated Group, Series 1993A, 6.500%, 8/15/18 6,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A2 5,894,220 Pollution Control Revenue Refunding Bonds, Fixed Rate Conversion, Detroit Edison Company, Series 1999C, 5.650%, 9/01/29 - SYNCORA GTY Insured (Alternative Minimum Tax) 7,500 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 Baa1 6,978,300 Bonds, Detroit Edison Company, Series 2002C, 5.450%, 12/15/32 - SYNCORA GTY Insured (Alternative Minimum Tax) 5,900 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 A1 5,466,586 Revenue Bonds, William Beaumont Hospital, Series 2001M, 5.250%, 11/15/35 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 33,215 Total Michigan 32,189,991 ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.9% (1.3% OF TOTAL INVESTMENTS) 7,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 7,385,070 Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/32 (Pre-refunded 1/01/11) - FGIC Insured 1,880 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 100.00 AA+ 1,914,536 Revenue Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 8,880 Total Minnesota 9,299,606 ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.5% (0.3% OF TOTAL INVESTMENTS) 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) ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.7% (0.4% OF TOTAL INVESTMENTS) 5,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AA- 1,735,050 Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/28 - AMBAC Insured 1,500 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 1,506,825 Agency, Mass Transit Sales Tax Appropriation Bonds, Metrolink Cross County Extension Project, Series 2002B, 5.000%, 10/01/32 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,500 Total Missouri 3,241,875 ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 5.7% (3.8% OF TOTAL INVESTMENTS) 4,885 Clark County, Nevada, Limited Tax General Obligation Bank 7/10 at 100.00 AA+ (4) 5,054,900 Bonds, Series 2000, 5.500%, 7/01/18 (Pre-refunded 7/01/10) 7,500 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/10 at 101.00 Aa3 (4) 7,857,075 Series 1999A, 6.000%, 7/01/29 (Pre-refunded 7/01/10) - NPFG Insured 1,950 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 Caa2 399,770 Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.625%, 1/01/32 - AMBAC 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)
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEVADA (continued) $ 10,750 Truckee Meadows Water Authority, Nevada, Water Revenue Bonds, 7/11 at 100.00 AAA $ 11,572,483 Series 2001A, 5.250%, 7/01/34 (Pre-refunded 7/01/11) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 27,585 Total Nevada 27,573,078 ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 7.9% (5.2% OF TOTAL INVESTMENTS) 16,840 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 39.39 BB+ 2,087,992 Bonds, Saint Barnabas Health Care System, Series 2006A, 0.000%, 7/01/35 2,400 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- (4) 2,535,792 Bonds, Trinitas Hospital Obligated Group, Series 2000, 7.500%, 7/01/30 (Pre-refunded 7/01/10) 14,865 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/10 at 100.00 Aaa 14,950,770 Program Revenue Bonds, Series 2000CC, 5.850%, 10/01/25 - NPFG Insured (Alternative Minimum Tax) 1,905 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/09 at 100.00 A+ 1,905,400 Housing Revenue Bonds, Series 1997A, 5.550%, 5/01/27 - AMBAC Insured (Alternative Minimum Tax) 20,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 4,948,200 System Bonds, Series 2006C, 0.000%, 12/15/33 - FSA Insured 6,470 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 7,033,666 Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6,500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 4,386,460 Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/41 ------------------------------------------------------------------------------------------------------------------------------------ 68,980 Total New Jersey 37,848,280 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 5.0% (3.3% OF TOTAL INVESTMENTS) 8,500 Farmington, New Mexico, Pollution Control Revenue Refunding 4/10 at 100.00 Baa3 8,447,555 Bonds, Public Service Company of New Mexico - San Juan Project, Series 1997B, 5.800%, 4/01/22 New Mexico Hospital Equipment Loan Council, Hospital Revenue Bonds, Presbyterian Healthcare Services, Series 2001A: 8,000 5.500%, 8/01/25 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 8,723,840 6,200 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 6,760,976 ------------------------------------------------------------------------------------------------------------------------------------ 22,700 Total New Mexico 23,932,371 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 8.4% (5.5% OF TOTAL INVESTMENTS) 10,000 Dormitory Authority of the State of New York, New York City, 5/10 at 101.00 AA- (4) 10,407,200 Lease Revenue Bonds, Court Facilities, Series 1999, 6.000%, 5/15/39 (Pre-refunded 5/15/10) 7,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 7,112,000 Contract Refunding Bonds, Series 2002A, 5.125%, 1/01/29 5,000 New York City Municipal Water Finance Authority, New York, 12/09 at 101.00 AAA 5,022,050 Water and Sewerage System Revenue Bonds, Fiscal Series 1999B, 5.000%, 6/15/29 - FSA Insured 2,255 New York City Transit Authority, New York, Metropolitan 1/10 at 101.00 N/R (4) 2,298,476 Transportation Authority, Triborough Bridge and Tunnel Authority, Certificates of Participation, Series 2000A, 5.750%, 1/01/20 (Pre-refunded 1/01/10) - AMBAC Insured 9,750 New York City Transitional Finance Authority, New York, Future 5/10 at 101.00 AAA 10,148,678 Tax Secured Bonds, Fiscal Series 2000B, 6.000%, 11/15/29 (Pre-refunded 5/15/10) 5,385 New York State Mortgage Agency, Homeowner Mortgage Revenue 3/10 at 100.50 Aa1 5,400,401 Bonds, Series 79, 5.300%, 4/01/29 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 39,390 Total New York 40,388,805 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 4.9% (3.2% OF TOTAL INVESTMENTS) 18,555 North Carolina Eastern Municipal Power Agency, Power System 1/10 at 100.00 Baa1 18,576,519 Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/17 - FGIC Insured 1,900 North Carolina Turnpike Authority, Triangle Expressway System 1/19 at 100.00 AAA 1,997,926 Senior Lien Revenue Bonds, Series 2009A, 5.750%, 1/01/39 - AGC Insured 3,000 The Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 2,891,910 Doing Business as Carolinas HealthCare System, Health Care Refunding Revenue Bonds, Series 2008A, 5.000%, 1/15/47 ------------------------------------------------------------------------------------------------------------------------------------ 23,455 Total North Carolina 23,466,355 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 39 NQS | Nuveen Select Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 6.3% (4.1% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: $ 240 5.125%, 6/01/24 6/17 at 100.00 BBB $ 213,758 2,980 5.375%, 6/01/24 6/17 at 100.00 BBB 2,724,644 2,700 5.875%, 6/01/30 6/17 at 100.00 BBB 2,349,999 2,755 5.750%, 6/01/34 6/17 at 100.00 BBB 2,316,817 7,995 5.875%, 6/01/47 6/17 at 100.00 BBB 5,923,655 5,150 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/22 at 100.00 BBB 3,378,143 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: 5,000 6.750%, 4/01/18 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,183,150 5,000 6.750%, 4/01/22 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,183,150 3,750 Ohio Higher Educational Facilities Commission, Revenue Bonds, 1/17 at 100.00 A 2,630,925 University Hospitals Health System Inc., Series 2007A, Trust 2812-1, 12.410%, 1/15/46 - AMBAC Insured (IF) 185 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 8/10 at 100.00 Aaa 190,526 Program Residential Mortgage Revenue Bonds, Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 35,755 Total Ohio 30,094,767 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.8% (0.5% OF TOTAL INVESTMENTS) 1,675 Oklahoma Development Finance Authority, Health System Revenue 8/18 at 100.00 AA- 1,709,137 Bonds, Integris Baptist Medical Center, Series 2008B, 5.250%, 8/15/38 2,235 Oklahoma Development Finance Authority, Revenue Bonds, St. 2/14 at 100.00 A 2,245,974 John Health System, Series 2004, 5.000%, 2/15/24 ------------------------------------------------------------------------------------------------------------------------------------ 3,910 Total Oklahoma 3,955,111 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.7% (1.8% OF TOTAL INVESTMENTS) 95 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 95,747 Revenue Bonds, Series 1999, 5.750%, 1/01/15 - FSA Insured 1,250 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/18 at 100.00 AAA 1,259,025 Series 2008, 5.000%, 12/01/43 - FSA Insured 3,250 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 3,027,343 Revenue Bonds, Series 2006-96A, 4.650%, 10/01/31 (Alternative Minimum Tax) (UB) 8,200 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/27 at 100.00 A2 5,108,518 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 ------------------------------------------------------------------------------------------------------------------------------------ 17,795 Total Pennsylvania 13,132,033 ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 2.7% (1.8% OF TOTAL INVESTMENTS) 800 Puerto Rico Public Buildings Authority, Guaranteed Government No Opt. Call BBB- 616,256 Facilities Revenue Refunding Bonds, Series 2002D, 0.000%, 7/01/31 - AMBAC Insured 2,200 Puerto Rico Public Buildings Authority, Guaranteed Government 7/17 at 100.00 Baa3 (4) 2,164,514 Facilities Revenue Refunding Bonds, Series 2002D, 0.000%, 7/01/31 (Pre-refunded 7/01/17) - AMBAC Insured 12,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/26 at 100.00 A+ 8,847,960 Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/32 23,890 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 1,461,351 Revenue Bonds, Series 2007A, 0.000%, 8/01/54 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 38,890 Total Puerto Rico 13,090,081 ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 1.6% (1.0% OF TOTAL INVESTMENTS) 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 5,255 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 4,971,335 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32 ------------------------------------------------------------------------------------------------------------------------------------ 7,755 Total Rhode Island 7,518,195 ------------------------------------------------------------------------------------------------------------------------------------
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 7.7% (5.1% OF TOTAL INVESTMENTS) Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series 2002: $ 5,500 6.000%, 12/01/21 (Pre-refunded 12/01/12) 12/12 at 101.00 AA (4) $ 6,373,785 4,500 6.000%, 12/01/21 (Pre-refunded 12/01/12) 12/12 at 101.00 AA (4) 5,214,915 3,750 Greenwood County, South Carolina, Hospital Revenue Bonds, 10/11 at 100.00 A 3,740,325 Self Memorial Hospital, Series 2001, 5.500%, 10/01/31 2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A+ (4) 2,893,150 Hospital Revenue Refunding and Improvement Bonds, Series 2003, 5.750%, 11/01/28 (Pre-refunded 11/01/13) 2,825 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 A 2,911,276 FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%, 2/15/22 - NPFG Insured 21,565 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call A- 6,622,396 Revenue Bonds, Series 2004A-2, 0.000%, 1/01/30 - AMBAC Insured 1,250 South Carolina Housing Finance and Development Authority, 6/10 at 100.00 Aa1 1,260,538 Mortgage Revenue Bonds, Series 2000A-2, 6.000%, 7/01/20 - FSA Insured (Alternative Minimum Tax) 7,555 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 7,927,915 Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12) ------------------------------------------------------------------------------------------------------------------------------------ 49,445 Total South Carolina 36,944,300 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 1.7% (1.1% OF TOTAL INVESTMENTS) 4,375 Sioux Falls, South Dakota, Industrial Revenue Refunding 10/14 at 100.00 AAA 5,348,875 Bonds, Great Plains Hotel Corporation, Series 1989, 8.500%, 11/01/16 (Pre-refunded 10/15/14) (Alternative Minimum Tax) 1,280 South Dakota Education Loans Inc., Revenue Bonds, Subordinate 12/09 at 101.00 B3 919,130 Series 1998-1K, 5.600%, 6/01/20 (Alternative Minimum Tax) 1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,776,705 Revenue Bonds, Sioux Valley Hospitals, Series 2004A, 5.500%, 11/01/31 ------------------------------------------------------------------------------------------------------------------------------------ 7,405 Total South Dakota 8,044,710 ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 4.3% (2.9% OF TOTAL INVESTMENTS) 5,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 5,115,950 Tennessee, Hospital Revenue Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.500%, 4/15/31 20,060 Knox County Health, Educational and Housing Facilities Board, 1/13 at 80.49 AAA 14,100,776 Tennessee, Hospital Revenue Refunding Bonds, Covenant Health, Series 2002A, 0.000%, 1/01/17 - FSA Insured 2,000 Sullivan County Health Educational and Housing Facilities 3/13 at 100.00 N/R 1,719,860 Board, Tennessee, Revenue Bonds, Wellmont Health System, Refunding Series 200A, 5.440%, 9/01/32 ------------------------------------------------------------------------------------------------------------------------------------ 27,060 Total Tennessee 20,936,586 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 14.6% (9.6% OF TOTAL INVESTMENTS) 5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Caa3 2,983,269 Refunding Bonds, TXU Electric Company, Series 1999C, 7.700%, 3/01/32 (Alternative Minimum Tax) 7,925 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 7,145,418 Refunding Bonds, TXU Electric Company, Series 2001C, 5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax) 4,080 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 A 3,520,102 Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/35 - FGIC Insured 5,500 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax 12/11 at 100.00 AAA 5,980,645 Revenue Bonds, Series 2001, 5.000%, 12/01/31 (Pre-refunded 12/01/11) - AMBAC Insured 2,000 Ennis Independent School District, Ellis County, Texas, 8/16 at 54.64 Aaa 777,940 General Obligation Bonds, Series 2006, 0.000%, 8/15/28 1,550 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/11 at 101.00 BBB 1,564,648 Revenue Bonds, Valero Energy Corporation, Series 2001, 6.650%, 4/01/32 (Alternative Minimum Tax) 7,570 Harris County-Houston Sports Authority, Texas, Junior Lien No Opt. Call A 1,582,054 Revenue Bonds, Series 2001H, 0.000%, 11/15/31 - NPFG Insured 5,000 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AA+ 5,143,150 Obligation Bonds, Series 2003, 5.000%, 2/15/26 - AMBAC Insured (UB) 9,000 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call BBB+ 8,509,860 Revenue Refunding Bonds, Houston Light and Power Company, Series 1997, 5.125%, 11/01/28 - AMBAC Insured (Alternative Minimum Tax)
Nuveen Investments 41 NQS | Nuveen Select Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 7,000 North Texas Thruway Authority, First Tier System Revenue 1/25 at 100.00 A2 $ 5,148,570 Refunding Bonds, Capital Appreciation Series 2008I, 0.000%, 1/01/43 340 Panhandle Regional Housing Finance Corporation, Texas, GNMA 11/09 at 100.00 N/R 344,457 Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1991A, 7.500%, 5/01/24 (Alternative Minimum Tax) 2,210 Richardson Hospital Authority, Texas, Revenue Bonds, 12/13 at 100.00 Baa2 2,160,916 Richardson Regional Medical Center, Series 2004, 6.000%, 12/01/19 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 5,500 Spring Independent School District, Harris County, Texas, 8/11 at 100.00 AAA 5,725,170 Unlimited Tax Schoolhouse Bonds, Series 2001, 5.000%, 8/15/26 4,375 Tarrant County Cultural & Educational Facilities Financing 11/17 at 100.00 AA- 3,852,669 Corporation, Texas, Revenue Bonds, Tarrant County Health Resources, Series 2008, Trust 1197, 9.071%, 11/15/47 (IF) 3,335 Texas State, General Obligation Bonds, Water Financial 8/19 at 100.00 AA+ 3,777,955 Assistance, Tender Option Bond Trust 3479, 13.214%, 8/01/39 (IF) White Settlement Independent School District, Tarrant County, Texas, General Obligation Bonds, Series 2006: 9,110 0.000%, 8/15/36 8/15 at 33.75 AAA 2,161,074 9,110 0.000%, 8/15/41 8/15 at 25.73 AAA 1,633,332 7,110 0.000%, 8/15/45 8/15 at 20.76 AAA 1,006,705 1,785 Winter Garden Housing Finance Corporation, Texas, GNMA/FNMA 4/10 at 100.00 AAA 1,787,570 Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1994, 6.950%, 10/01/27 (Alternative Minimum Tax) 2,000 Wylie Independent School District, Taylor County, Texas, 8/15 at 57.10 AAA 869,500 General Obligation Bonds, Series 2005, 0.000%, 8/15/26 ------------------------------------------------------------------------------------------------------------------------------------ 104,310 Total Texas 70,508,672 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 4.1% (2.7% OF TOTAL INVESTMENTS) 3,565 Utah Associated Municipal Power Systems, Revenue Bonds, 4/13 at 100.00 AAA 3,736,655 Payson Power Project, Series 2003A, 5.000%, 4/01/24 - FSA Insured (UB) 16,050 Utah County, Utah, Hospital Revenue Bonds, IHC Health 2/10 at 100.00 A (4) 16,111,310 Services Inc., Series 1997, 5.250%, 8/15/26 - NPFG Insured (ETM) ------------------------------------------------------------------------------------------------------------------------------------ 19,615 Total Utah 19,847,965 ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 1.9% (1.3% OF TOTAL INVESTMENTS) Vermont Educational and Health Buildings Financing Agency, Revenue Bonds, Fletcher Allen Health Care Inc., Series 2000A: 3,720 6.125%, 12/01/15 - AMBAC Insured 12/10 at 101.00 Baa1 3,798,492 4,265 6.250%, 12/01/16 - AMBAC Insured 12/10 at 101.00 Baa1 4,353,072 1,035 Vermont Housing Finance Agency, Single Family Housing Bonds, 11/09 at 100.00 AAA 1,057,221 Series 2000-13A, 5.950%, 11/01/25 - FSA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 9,020 Total Vermont 9,208,785 ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.1% (0.7% OF TOTAL INVESTMENTS) 2,000 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 1,702,040 Residential Care Facilities Mortgage Revenue Bonds, Goodwin House, Inc., Series 2007A, 5.125%, 10/01/42 5,000 Metropolitan Washington DC Airports Authority, Virginia, 10/26 at 100.00 AAA 3,416,200 Dulles Toll Road Revenue Bonds, Series 2009C., 0.000%, 10/01/41 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------------ 7,000 Total Virginia 5,118,240 ------------------------------------------------------------------------------------------------------------------------------------
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 4.6% (3.0% OF TOTAL INVESTMENTS) $ 8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AA $ 8,811,410 Consolidated System Revenue Bonds, Series 2001A, 5.600%, 1/01/36 - NPFG Insured (Alternative Minimum Tax) (UB) 3,750 FYI Properties, Washington, Lease Revenue Bonds, Washington 6/19 at 100.00 AA 3,933,750 State Department of Information Services Project, Series 2009, 5.500%, 6/01/39 7,225 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 A 7,308,015 Terminal 18, Series 1999B, 6.000%, 9/01/20 - NPFG Insured (Alternative Minimum Tax) 2,500 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 2,000,225 Bonds, Northwest Hospital and Medical Center of Seattle, Series 2007, 5.700%, 12/01/32 ------------------------------------------------------------------------------------------------------------------------------------ 22,285 Total Washington 22,053,400 ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 1.0% (0.7% OF TOTAL INVESTMENTS) 5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,045,000 Appalachian Power Company, Series 2003L, 5.500%, 10/01/22 ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.8% (1.8% OF TOTAL INVESTMENTS) 5,950 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 AAA 6,501,625 Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/27 (Pre-refunded 6/01/12) 5,000 Madison, Wisconsin, Industrial Development Revenue Refunding 4/12 at 100.00 AA- 5,051,250 Bonds, Madison Gas and Electric Company Projects, Series 2002A, 5.875%, 10/01/34 (Alternative Minimum Tax) 2,100 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 BBB+ 1,765,910 Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 13,050 Total Wisconsin 13,318,785 ------------------------------------------------------------------------------------------------------------------------------------ $ 949,270 Total Investments (cost $729,435,281) - 151.9% 730,919,102 ===============--------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (3.9)% (18,540,000) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 4.2% 20,129,208 ------------------------------------------------------------------------------------------------------------------ Preferred Shares, at Liquidation Value - (52.2)% (5) (251,275,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 481,233,310 ==================================================================================================================
(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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 34.4%. 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 43 NQU | Nuveen Quality Income Municipal Fund, Inc. | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 2.8% (1.8% OF TOTAL INVESTMENTS) Jefferson County, Alabama, Sewer Revenue Capitol Improvement Warrants, Series 2001A: $ 7,475 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA $ 7,973,358 6,340 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 6,693,645 6,970 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 7,434,690 ------------------------------------------------------------------------------------------------------------------------------------ 20,785 Total Alabama 22,101,693 ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.8% (1.1% OF TOTAL INVESTMENTS) 6,110 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 6,266,783 Bonds, Series 2005A, 5.000%, 12/01/27 - FGIC Insured (UB) 11,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 7,309,500 Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46 ------------------------------------------------------------------------------------------------------------------------------------ 17,110 Total Alaska 13,576,283 ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 2.2% (1.4% OF TOTAL INVESTMENTS) 5,350 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 A2 5,354,976 Multipurpose Stadium Facility Project, Series 2003A, 5.000%, 7/01/28 - NPFG Insured 1,000 Mesa, Arizona, Utility System Revenue Refunding Bonds, Series No Opt. Call AA- 1,104,030 2002, 5.250%, 7/01/17 - FGIC Insured 2,350 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/18 at 100.00 AA- 2,366,286 Airport Revenue Bonds, Series 2008A, 5.000%, 7/01/33 8,010 Salt River Project Agricultural Improvement and Power 1/12 at 101.00 Aa1 8,264,638 District, Arizona, Electric System Revenue Refunding Bonds, Series 2002A, 5.125%, 1/01/27 ------------------------------------------------------------------------------------------------------------------------------------ 16,710 Total Arizona 17,089,930 ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.0% (0.6% OF TOTAL INVESTMENTS) Arkansas Development Finance Authority, Tobacco Settlement Revenue Bonds, Arkansas Cancer Research Center Project, Series 2006: 2,500 0.000%, 7/01/36 - AMBAC Insured No Opt. Call Aa3 611,550 19,800 0.000%, 7/01/46 - AMBAC Insured No Opt. Call Aa3 2,716,362 4,000 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aa3 4,079,720 Sciences Campus, Series 2004B, 5.000%, 11/01/34 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 26,300 Total Arkansas 7,407,632 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 13.8% (8.9% OF TOTAL INVESTMENTS) 12,500 Anaheim Public Finance Authority, California, Subordinate No Opt. Call AAA 2,620,250 Lease Revenue Bonds, Public Improvement Project, Series 1997C, 0.000%, 9/01/35 - FSA Insured 1,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 1,127,190 Revenue Bonds, Series 2002A, 5.750%, 5/01/17 (Pre-refunded 5/01/12) 6,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 5,570,700 Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/33 3,450 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 3,257,732 Bonds, J. David Gladstone Institutes, Series 2001, 5.250%, 10/01/34 1,360 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 1,249,024 Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/30 3,600 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 3,714,408 Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 - FGIC Insured 14,600 California, General Obligation Bonds, Series 2003, 5.250%, 8/13 at 100.00 A 14,618,396 2/01/28 25,000 California, General Obligation Bonds, Series 2005, 4.750%, 3/16 at 100.00 A 22,266,749 3/01/35 - NPFG Insured 10,000 California, Various Purpose General Obligation Bonds, Series 4/10 at 100.00 A 9,314,700 1999, 4.750%, 4/01/29 - NPFG Insured 16,000 California, Various Purpose General Obligation Bonds, Series 6/17 at 100.00 A 14,977,920 2007, 5.000%, 6/01/37 8,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 A 7,304,305 Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 - NPFG Insured
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: $ 10,100 5.000%, 6/01/33 6/17 at 100.00 BBB $ 7,707,108 1,500 5.125%, 6/01/47 6/17 at 100.00 BBB 996,585 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 1,830 San Diego Public Facilities Financing Authority, California, 8/19 at 100.00 AA- 2,306,971 Water Utility Revenue Bonds, Tender Option Bond Trust 3504, 19.428%, 8/01/39 (IF) 30,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call A 4,674,000 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 1,500 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 1,062,510 Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 5.500%, 6/01/45 ------------------------------------------------------------------------------------------------------------------------------------ 153,240 Total California 107,243,537 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.3% (3.4% OF TOTAL INVESTMENTS) 1,000 Colorado Health Facilities Authority, Revenue Bonds, Poudre 9/18 at 102.00 AAA 1,001,730 Valley Health System, Series 2005C, 5.250%, 3/01/40 - FSA Insured 10,000 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 A+ 10,026,200 Refunding Bonds, Series 2000A, 5.625%, 11/15/23 - AMBAC Insured (Alternative Minimum Tax) 6,185 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 2,059,296 Bonds, Series 1997B, 0.000%, 9/01/26 - NPFG Insured 43,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 8,457,240 Bonds, Series 2000B, 0.000%, 9/01/33 - NPFG Insured 14,400 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 65.63 Aaa 9,391,824 Bonds, Series 2000B, 0.000%, 9/01/17 (Pre-refunded 9/01/10) - NPFG Insured 7,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 1,266,650 Series 2004A, 0.000%, 9/01/34 - NPFG Insured 8,740 Larimer County School District R1, Poudre, Colorado, General 12/10 at 100.00 Aa3 (4) 9,208,814 Obligation Bonds, Series 2000, 5.125%, 12/15/19 (Pre-refunded 12/15/10) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 90,325 Total Colorado 41,411,754 ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.6% (0.4% OF TOTAL INVESTMENTS) 4,395 Bridgeport, Connecticut, General Obligation Bonds, Series 8/11 at 100.00 A- (4) 4,740,535 2001C, 5.375%, 8/15/17 (Pre-refunded 8/15/11) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 0.7% (0.4% OF TOTAL INVESTMENTS) 5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A1 (4) 5,360,500 Revenue Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10) ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.7% (0.5% OF TOTAL INVESTMENTS) 5,000 Medical Center Hospital Authority, Georgia, Revenue 8/18 at 100.00 AAA 5,492,450 Anticipation Certificates, Columbus Regional Healthcare System, Inc. Project, Series 2008, 6.500%, 8/01/38 ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 1.3% (0.8% OF TOTAL INVESTMENTS) 10,000 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 A 10,212,200 Refunding Bonds, Series 2000B, 5.750%, 7/01/21 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 15.8% (10.2% OF TOTAL INVESTMENTS) Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Revenues, Series 2001C: 1,000 5.500%, 12/01/18 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 1,097,270 3,000 5.000%, 12/01/20 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 3,260,850 2,000 5.000%, 12/01/21 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 2,173,900 Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1: 9,400 0.000%, 12/01/14 - FGIC Insured No Opt. Call AA- 7,970,448 4,400 0.000%, 12/01/15 - FGIC Insured No Opt. Call AA- 3,528,668
Nuveen Investments 45 NQU | Nuveen Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 32,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA- $ 9,602,693 Series 1999, 0.000%, 1/01/32 - FGIC Insured Chicago, Illinois, General Obligation Bonds, Neighborhoods Alive 21 Program, Series 2000A: 680 6.000%, 1/01/28 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA- (4) 712,708 4,320 6.000%, 1/01/28 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA- (4) 4,527,792 190 Chicago, Illinois, General Obligation Bonds, Series 2002A, 7/12 at 100.00 AA- 200,070 5.000%, 1/01/18 - AMBAC Insured Chicago, Illinois, General Obligation Bonds, Series 2002A: 70 5.000%, 1/01/18 (Pre-refunded 7/01/12) - AMBAC Insured 7/12 at 100.00 Aa3 (4) 77,464 6,190 5.000%, 1/01/18 (Pre-refunded 7/01/12) - AMBAC Insured 7/12 at 100.00 AA- (4) 6,850,040 5,045 Chicago, Illinois, General Obligation Refunding Bonds, Series 1/10 at 101.00 AA- 5,116,336 2000D, 5.750%, 1/01/30 - FGIC Insured 13,240 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1/10 at 100.50 A 12,261,167 1998A, 5.125%, 1/01/35 - NPFG Insured (Alternative Minimum Tax) Chicago, Illinois, Second Lien Wastewater Transmission Revenue Bonds, Series 2000: 8,000 5.750%, 1/01/25 (Pre-refunded 1/01/10) - NPFG Insured 1/10 at 101.00 A+ (4) 8,154,240 7,750 6.000%, 1/01/30 (Pre-refunded 1/01/10) - NPFG Insured 1/10 at 101.00 A+ (4) 7,902,675 Illinois Educational Facilities Authority, Student Housing Revenue Bonds, Educational Advancement Foundation Fund, University Center Project, Series 2002: 3,000 6.625%, 5/01/17 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 3,438,720 1,800 6.000%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,035,530 1,050 Illinois Finance Authority, General Obligation Debt 12/14 at 100.00 A3 1,076,754 Certificates, Local Government Program - Kankakee County, Series 2005B, 5.000%, 12/01/20 - AMBAC Insured 15,000 Illinois Finance Authority, Illinois, Northwestern 12/15 at 100.00 AAA 15,251,100 University, Revenue Bonds, Series 2006, 5.000%, 12/01/42 (UB) 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 5,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 N/R (4) 5,791,450 Memorial Hospital, Series 2004A, 5.500%, 8/15/43 (Pre-refunded 8/15/14) 10,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa 2/10 at 101.00 Aa3 (4) 10,248,400 Health System, Series 2000, 5.875%, 2/15/30 - AMBAC Insured (ETM) 5,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 12/10 at 100.00 AA- 5,196,400 Series 2000, 5.450%, 12/01/21 - NPFG Insured 2,270 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 2,318,124 Bonds, McCormick Place Expansion Project, Series 2002A, 5.000%, 12/15/28 - NPFG 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 ------------------------------------------------------------------------------------------------------------------------------------ 145,033 Total Illinois 122,557,358 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.7% (1.1% OF TOTAL INVESTMENTS) 2,000 Indiana Health Facility Financing Authority, Hospital Revenue 3/14 at 100.00 A+ 1,961,260 Bonds, Deaconess Hospital Inc., Series 2004A, 5.375%, 3/01/34 - AMBAC Insured 3,240 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 A+ 3,313,321 Bonds, Marion General Hospital, Series 2002, 5.625%, 7/01/19 - AMBAC Insured 2,400 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 A 2,091,384 Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 - AMBAC Insured 6,015 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/10 at 100.00 AA- 5,867,031 Memorial Health System, Series 1998A, 4.625%, 8/15/28 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 13,655 Total Indiana 13,232,996 ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.0% (0.7% OF TOTAL INVESTMENTS) Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C: 4,000 5.375%, 6/01/38 6/15 at 100.00 BBB 2,938,800 7,000 5.625%, 6/01/46 6/15 at 100.00 BBB 5,146,890 ------------------------------------------------------------------------------------------------------------------------------------ 11,000 Total Iowa 8,085,690 ------------------------------------------------------------------------------------------------------------------------------------
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS) $ 4,585 Johnson County Unified School District 232, Kansas, General 9/10 at 100.00 Aa3 (4) $ 4,755,562 Obligation Bonds, Series 2000, 4.750%, 9/01/19 (Pre-refunded 9/01/10) - FSA Insured 1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas 6/14 at 100.00 A 1,767,623 and Electric Company, Series 2004, 5.300%, 6/01/31 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,335 Total Kansas 6,523,185 ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.5% (0.3% OF TOTAL INVESTMENTS) 1,000 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA 1,071,950 Arena Project Revenue Bonds, Louisville Arena Authority, Inc., Series 2008A-1, 6.000%, 12/01/33 - AGC Insured 2,500 Kentucky State Property and Buildings Commission, Revenue 2/12 at 100.00 AAA 2,745,075 Refunding Bonds, Project 74, Series 2002, 5.375%, 2/01/18 (Pre-refunded 2/01/12) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,500 Total Kentucky 3,817,025 ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 3.6% (2.3% OF TOTAL INVESTMENTS) 10,000 Louisiana Public Facilities Authority, Hospital Revenue No Opt. Call AAA 11,030,200 Bonds, Franciscan Missionaries of Our Lady Health System, Series 1998A, 5.750%, 7/01/25 - FSA Insured (UB) 9,000 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 8,462,160 Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47 5,500 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 A2 (4) 6,061,880 University, Series 2002A, 5.000%, 7/01/32 (Pre-refunded 7/01/12) - AMBAC Insured 2,890 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 2,615,595 Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 ------------------------------------------------------------------------------------------------------------------------------------ 27,390 Total Louisiana 28,169,835 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 7.3% (4.7% OF TOTAL INVESTMENTS) 500 Massachusetts Health and Educational Facilities Authority, 7/18 at 100.00 A3 454,360 Revenue Bonds, CareGroup Inc., Series 2008E-1, 5.125%, 7/01/38 7,405 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 8,987,449 Revenue Bonds, Massachusetts Institute of Technology, Series 2002K, 5.500%, 7/01/32 (UB) 6,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/09 at 101.00 BBB 5,375,100 Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax) 12,500 Massachusetts Turnpike Authority, Metropolitan Highway System 1/10 at 100.00 A 11,790,875 Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - NPFG Insured 13,500 Massachusetts Turnpike Authority, Metropolitan Highway System 1/10 at 100.00 AA 12,786,120 Revenue Bonds, Subordinate Series 1999A, 5.000%, 1/01/39 - AMBAC Insured 425 Massachusetts Water Pollution Abatement Trust, Revenue Bonds, 2/10 at 101.00 AAA 430,644 MWRA Loan Program, Subordinate Series 1999A, 5.750%, 8/01/29 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 5,730 University of Massachusetts Building Authority, Senior Lien 11/10 at 100.00 A+ (4) 6,011,687 Project Revenue Bonds, Series 2000-2, 5.250%, 11/01/20 (Pre-refunded 11/01/10) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 56,060 Total Massachusetts 56,317,035 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.0% (0.7% OF TOTAL INVESTMENTS) 3,790 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 4,004,135 Detroit City School District, Series 2005, 5.000%, 6/01/20 - FSA Insured 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 ------------------------------------------------------------------------------------------------------------------------------------ 7,990 Total Michigan 8,036,110 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 47 NQU | Nuveen Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.3% (0.8% OF TOTAL INVESTMENTS) Chaska, Minnesota, Electric Revenue Bonds, Generating Facility Project, Series 2000A: $ 1,930 6.000%, 10/01/20 (Pre-refunded 10/01/10) 10/10 at 100.00 A3 (4) $ 2,027,156 2,685 6.000%, 10/01/25 (Pre-refunded 10/01/10) 10/10 at 100.00 A3 (4) 2,820,163 3,655 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 5,136,298 Authority, Minnesota, GNMA Mortgage-Backed Securities Program Single Family Residential Mortgage Revenue Bonds, Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) (ETM) ------------------------------------------------------------------------------------------------------------------------------------ 8,270 Total Minnesota 9,983,617 ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.6% (0.4% OF TOTAL INVESTMENTS) 1,875 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 1,909,519 Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%, 9/01/24 (UB) 2,500 Mississippi Hospital Equipment and Facilities Authority, 1/11 at 101.00 Aa3 (4) 2,662,925 Revenue Bonds, Forrest County General Hospital, Series 2000, 5.500%, 1/01/27 (Pre-refunded 1/01/11) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,375 Total Mississippi 4,572,444 ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.6% (1.0% OF TOTAL INVESTMENTS) 15,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AA- 5,205,150 Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/28 - AMBAC Insured 2,400 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,459,040 Agency, Mass Transit Sales Tax Appropriation Bonds, Metrolink Cross County Extension Project, Series 2002B, 5.000%, 10/01/23 - FSA Insured 15,350 Springfield Public Building Corporation, Missouri, Lease No Opt. Call N/R 4,323,942 Revenue Bonds, Jordan Valley Park Projects, Series 2000A, 0.000%, 6/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 32,750 Total Missouri 11,988,132 ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 5.3% (3.4% OF TOTAL INVESTMENTS) 34,470 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AA (4) 37,982,836 Bonds, Series 2002C, 5.000%, 6/15/20 (Pre-refunded 6/15/12) - NPFG Insured 6,845 Director of Nevada State Department of Business and Industry, No Opt. Call Caa2 596,816 Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 0.000%, 1/01/23 - AMBAC 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) ------------------------------------------------------------------------------------------------------------------------------------ 43,815 Total Nevada 41,268,502 ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 5.1% (3.3% OF TOTAL INVESTMENTS) 1,000 New Jersey Building Authority, State Building Revenue Bonds, 12/12 at 100.00 AAA 1,120,520 Series 2002A, 5.000%, 12/15/21 (Pre-refunded 12/15/12) - FSA Insured 10,000 New Jersey Health Care Facilities Financing Authority, 1/17 at 37.38 BB+ 1,134,300 Revenue Bonds, Saint Barnabas Health Care System, Series 2006A, 0.000%, 7/01/36 2,150 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- (4) 2,271,647 Revenue Bonds, Trinitas Hospital Obligated Group, Series 2000, 7.500%, 7/01/30 (Pre-refunded 7/01/10) 2,025 New Jersey Transportation Trust Fund Authority, 12/11 at 100.00 AA- (4) 2,248,864 Transportation System Bonds, Series 2001B, 6.000%, 12/15/19 (Pre-refunded 12/15/11) - NPFG Insured 3,200 New Jersey Transportation Trust Fund Authority, 6/13 at 100.00 AAA 3,659,648 Transportation System Bonds, Series 2003C, 5.500%, 6/15/22 (Pre-refunded 6/15/13) New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: 20,000 0.000%, 12/15/33 - FSA Insured No Opt. Call AAA 4,948,200 20,000 0.000%, 12/15/35 - AMBAC Insured No Opt. Call AA- 3,942,000 20,000 0.000%, 12/15/36 - AMBAC Insured No Opt. Call AA- 3,694,800 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002: 1,965 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 2,136,191 1,000 6.125%, 6/01/42 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,128,800
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY (continued) Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: $ 9,420 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA $ 11,102,224 1,850 6.250%, 6/01/43 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,156,712 ------------------------------------------------------------------------------------------------------------------------------------ 92,610 Total New Jersey 39,543,906 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS) 5,925 New Mexico Hospital Equipment Loan Council, Hospital Revenue 8/11 at 101.00 AA- (4) 6,461,094 Bonds, Presbyterian Healthcare Services, Series 2001A, 5.500%, 8/01/21 (Pre-refunded 8/01/11) ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 15.6% (10.0% OF TOTAL INVESTMENTS) Dormitory Authority of the State of New York, Improvement Revenue Bonds, Mental Health Services Facilities, Series 2000B: 100 6.000%, 2/15/30 (Pre-refunded 2/15/10) - NPFG Insured 2/10 at 100.00 A1 (4) 101,669 65 6.000%, 2/15/30 (Pre-refunded 2/15/10) - NPFG Insured 2/10 at 100.00 A1 (4) 66,079 1,005 6.000%, 2/15/30 (Pre-refunded 2/15/10) - NPFG Insured 2/10 at 100.00 A1 (4) 1,021,683 8,830 6.000%, 2/15/30 (Pre-refunded 2/15/10) - NPFG Insured 2/10 at 100.00 A1 (4) 8,976,578 275 Dormitory Authority of the State of New York, Insured Revenue 7/10 at 100.00 A 275,646 Bonds, Fordham University, Series 1998, 5.000%, 7/01/28 - NPFG Insured 2,250 Dormitory Authority of the State of New York, Insured Revenue No Opt. Call A 2,329,695 Bonds, Mount Sinai School of Medicine, Series 1994A, 5.150%, 7/01/24 - NPFG Insured 20,000 Erie County Tobacco Asset Securitization Corporation, New 7/10 at 101.00 AAA 21,013,599 York, Senior Tobacco Settlement Asset-Backed Bonds, Series 2000, 6.125%, 7/15/30 (Pre-refunded 7/15/10) 1,320 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 1,113,090 Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured 1,130 Long Island Power Authority, New York, Electric System 9/11 at 100.00 AAA 1,227,745 General Revenue Bonds, Series 2001A, 5.375%, 9/01/25 (Pre-refunded 9/01/11) 15,000 Metropolitan Transportation Authority, New York, Dedicated 4/10 at 100.00 AA (4) 15,352,650 Tax Fund Bonds, Series 2000A, 6.000%, 4/01/30 (Pre-refunded 4/01/10) - FGIC 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) New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2000B: 8,035 5.750%, 11/15/19 (Pre-refunded 5/15/10) 5/10 at 101.00 AAA 8,352,704 2,065 5.750%, 11/15/19 (Pre-refunded 5/15/10) 5/10 at 101.00 AAA 2,146,650 New York City, New York, General Obligation Bonds, Fiscal Series 2002G: 950 5.000%, 8/01/17 8/12 at 100.00 AA 987,924 6,555 5.750%, 8/01/18 8/12 at 100.00 AA 7,144,557 3,990 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA (4) 4,508,181 Series 2002G, 5.750%, 8/01/18 (Pre-refunded 8/01/12) 5,000 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA 5,470,700 Series 2003A, 5.750%, 8/01/16 New York State Environmental Facilities Corporation, State Clean Water and Drinking Water Revolving Funds Revenue Bonds, New York City Municipal Water Finance Authority Projects, Second Resolution Bonds, Series 2001C: 6,035 5.000%, 6/15/20 6/11 at 100.00 AAA 6,190,763 6,575 5.000%, 6/15/22 6/11 at 100.00 AAA 6,720,505 11,540 Port Authority of New York and New Jersey, Consolidated 11/12 at 101.00 AAA 12,695,500 Revenue Bonds, One Hundred Twenty-Eighth Series 2002, 5.000%, 11/01/20 - FSA Insured 2,250 United Nations Development Corporation, New York, Senior Lien 1/10 at 100.00 A3 2,251,665 Revenue Bonds, Series 2004A, 5.250%, 7/01/21 ------------------------------------------------------------------------------------------------------------------------------------ 116,570 Total New York 120,782,991 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 49 NQU | Nuveen Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.0% (1.3% OF TOTAL INVESTMENTS) $ 4,000 North Carolina Medical Care Commission, Health System Revenue 10/17 at 100.00 AA $ 3,786,320 Bonds, Mission St. Joseph's Health System, Series 2007, 4.500%, 10/01/31 (UB) 665 North Carolina Medical Care Commission, Hospital Revenue 12/10 at 100.00 A1 630,566 Bonds, Pitt County Memorial Hospital, Series 1998A, 4.750%, 12/01/28 - NPFG Insured 7,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 A 7,810,050 Revenue Bonds, Series 2003A, 5.250%, 1/01/19 - NPFG Insured 3,000 The Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 2,891,910 Doing Business as Carolinas HealthCare System, Health Care Refunding Revenue Bonds, Series 2008A, 5.000%, 1/15/47 ------------------------------------------------------------------------------------------------------------------------------------ 15,165 Total North Carolina 15,118,846 ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 5.7% (3.7% OF TOTAL INVESTMENTS) 10,000 American Municipal Power Ohio Inc., General Revenue Bonds, 2/18 at 100.00 A1 10,048,600 Series 2008, 5.250%, 2/15/43 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: 205 5.125%, 6/01/24 6/17 at 100.00 BBB 182,585 1,925 5.875%, 6/01/30 6/17 at 100.00 BBB 1,675,462 1,740 5.750%, 6/01/34 6/17 at 100.00 BBB 1,463,253 2,400 6.000%, 6/01/42 6/17 at 100.00 BBB 1,850,808 5,730 5.875%, 6/01/47 6/17 at 100.00 BBB 4,245,472 Cincinnati City School District, Hamilton County, Ohio, General Obligation Bonds, Series 2002: 2,165 5.250%, 6/01/19 - FSA Insured 12/12 at 100.00 AAA 2,278,554 2,600 5.250%, 6/01/21 - FSA Insured 12/12 at 100.00 AAA 2,717,286 2,000 5.000%, 12/01/22 - FSA Insured 12/12 at 100.00 AAA 2,067,740 10,000 Columbus City School District, Franklin County, Ohio, General 12/16 at 100.00 AAA 9,369,800 Obligation Bonds, Series 2006, 4.250%, 12/01/32 - FSA Insured (UB) 9,350 Ohio Water Development Authority, Solid Waste Disposal 3/10 at 101.00 N/R 8,453,896 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 48,115 Total Ohio 44,353,456 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 3.6% (2.3% OF TOTAL INVESTMENTS) 1,675 Oklahoma Development Finance Authority, Health System Revenue 8/18 at 100.00 AA- 1,709,137 Bonds, Integris Baptist Medical Center, Series 2008B, 5.250%, 8/15/38 6,040 Oklahoma Development Finance Authority, Revenue Bonds, Saint 2/17 at 100.00 A 5,698,559 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 17,510 Pottawatomie County Home Finance Authority, Oklahoma, Single No Opt. Call AAA 18,471,999 Family Mortgage Revenue Bonds, Series 1991A, 8.625%, 7/01/10 (ETM) ------------------------------------------------------------------------------------------------------------------------------------ 27,225 Total Oklahoma 27,624,935 ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.5% (0.3% OF TOTAL INVESTMENTS) 3,000 Deschutes County School District 1, Bend-La Pine, Oregon, 6/11 at 100.00 Aa2 (4) 3,231,330 General Obligation Bonds, Series 2001A, 5.500%, 6/15/18 (Pre-refunded 6/15/11) - FSA Insured 210 Oregon Housing and Community Services Department, Single 1/14 at 100.00 Aa2 211,621 Family Mortgage Revenue Bonds, Series 2004H, 5.125%, 1/01/29 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 3,210 Total Oregon 3,442,951 ------------------------------------------------------------------------------------------------------------------------------------
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 4.2% (2.7% OF TOTAL INVESTMENTS) $ 2,000 Allegheny County Hospital Development Authority, No Opt. Call Aa3 $ 2,048,980 Pennsylvania, University of Pittsburgh Medical Center Revenue Bonds, Series 2009A, 5.625%, 8/15/39 220 Allentown, Pennsylvania, General Obligation Bonds, Series 10/13 at 100.00 Baa1 238,603 2003, 5.500%, 10/01/19 - FGIC Insured 1,450 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,464,906 Resource Recovery Revenue Refunding Bonds, Panther Creek Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) 1,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,397,235 Revenue Bonds, Series 2006-96A, 4.650%, 10/01/31 (Alternative Minimum Tax) (UB) 2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 Aa3 2,668,172 Series 2004A, 5.500%, 12/01/31 - AMBAC Insured 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 7,800 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 7,802,028 Ordinance, Fourth Series 1998, 5.000%, 8/01/32 - FSA Insured Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2002B: 6,000 5.625%, 8/01/19 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 Aa3 (4) 6,753,600 5,500 5.625%, 8/01/20 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 Aa3 (4) 6,190,800 ------------------------------------------------------------------------------------------------------------------------------------ 32,070 Total Pennsylvania 32,205,724 ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 5.7% (3.6% OF TOTAL INVESTMENTS) 2,500 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, 7/18 at 100.00 BBB- 2,555,650 Senior Lien Series 2008A, 6.000%, 7/01/44 5,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 475,200 Revenue Bonds, Series 2005A, 0.000%, 7/01/42 - FGIC Insured 5,000 Puerto Rico Municipal Finance Agency, Series 2002A, 5.000%, 8/12 at 100.00 AAA 5,029,600 8/01/27 - FSA Insured 1,500 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB- 1,499,280 Facilities Revenue Refunding Bonds, Series 2002D, 5.125%, 7/01/20 8,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/26 at 100.00 A+ 5,898,640 Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/32 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A: 50,000 0.000%, 8/01/47 - AMBAC Insured No Opt. Call AA- 5,150,500 55,000 0.000%, 8/01/54 - AMBAC Insured No Opt. Call AA- 3,364,350 15,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/17 at 100.00 AA- 15,247,050 Revenue Bonds, Tender Option Bond, Series 2007A, 5.250%, 8/01/57 (UB) 1,500 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 1,498,080 Series 2001A, 5.500%, 7/01/29 3,465 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 3,306,996 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 146,965 Total Puerto Rico 44,025,346 ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 0.5% (0.3% OF TOTAL INVESTMENTS) Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds, Series 2002A: 2,200 6.125%, 6/01/32 6/12 at 100.00 BBB 2,081,244 1,865 6.250%, 6/01/42 6/12 at 100.00 BBB 1,695,080 ------------------------------------------------------------------------------------------------------------------------------------ 4,065 Total Rhode Island 3,776,324 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 8.2% (5.2% OF TOTAL INVESTMENTS) 24,725 Greenville County School District, South Carolina, 12/12 at 101.00 AA (4) 28,278,723 Installment Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22 (Pre-refunded 12/01/12) Horry County School District, South Carolina, General Obligation Bonds, Series 2001A: 5,840 5.000%, 3/01/20 3/12 at 100.00 Aa1 6,218,432 5,140 5.000%, 3/01/21 3/12 at 100.00 Aa1 5,473,072
Nuveen Investments 51 NQU | Nuveen Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA (continued) Medical University Hospital Authority, South Carolina, FHA-Insured Mortgage Revenue Bonds, Series 2004A: $ 5,240 5.250%, 8/15/20 - NPFG Insured 8/14 at 100.00 A $ 5,423,557 3,000 5.250%, 2/15/24 - NPFG Insured 8/14 at 100.00 A 3,078,900 13,615 South Carolina Transportation Infrastructure Bank, Junior 10/11 at 100.00 N/R (4) 14,730,205 Lien Revenue Bonds, Series 2001B, 5.125%, 10/01/21 (Pre-refunded 10/01/11) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 57,560 Total South Carolina 63,202,889 ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.4% (0.3% OF TOTAL INVESTMENTS) 3,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 3,100,410 Tennessee, Hospital Revenue Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.375%, 4/15/22 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 14.9% (9.6% OF TOTAL INVESTMENTS) 535 Alamo Community College District, Bexar County, Texas, 11/11 at 100.00 AAA 581,015 Combined Fee Revenue Refunding Bonds, Series 2001, 5.375%, 11/01/16 - FSA Insured 465 Alamo Community College District, Bexar County, Texas, 11/11 at 100.00 Aa3 (4) 507,943 Combined Fee Revenue Refunding Bonds, Series 2001, 5.375%, 11/01/16 (Pre-refunded 11/01/11) - FSA Insured 11,255 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 10,147,846 Refunding Bonds, TXU Electric Company, Series 2001C, 5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax) 5,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 A 4,690,455 Williamson Counties, Toll Road Revenue Bonds, Series 2005, 5.000%, 1/01/45 - FGIC Insured 5,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 5,090,500 Refunding and Improvement Bonds, Series 2001A, 5.625%, 11/01/21 - FGIC Insured (Alternative Minimum Tax) 2,700 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 A 2,471,742 Revenue Bonds, Series 2001G, 5.250%, 11/15/30 - NPFG Insured 14,975 Harris County-Houston Sports Authority, Texas, Third Lien 11/24 at 55.69 A 2,504,719 Revenue Bonds, Series 2004-A3., 0.000%, 11/15/34 - NPFG Insured 4,865 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 1,835,613 Bonds, Convention and Entertainment Project, Series 2001B, 0.000%, 9/01/27 - AMBAC Insured 22,500 Houston, Texas, Junior Lien Water and Sewerage System Revenue 12/10 at 100.00 AA (4) 23,627,699 Refunding Bonds, Series 2000B, 5.250%, 12/01/30 (Pre-refunded 12/01/10) - FGIC Insured 4,590 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 4,599,914 Bonds, Series 2000A, 5.625%, 7/01/30 - FSA Insured (Alternative Minimum Tax) 6,000 Leander Independent School District, Williamson and Travis 8/14 at 33.33 AAA 1,554,660 Counties, Texas, General Obligation Bonds, Series 2006, 0.000%, 8/15/34 17,655 Matagorda County Navigation District 1, Texas, Revenue 11/09 at 101.00 A 16,468,937 Refunding Bonds, Houston Industries Inc., Series 1998B, 5.150%, 11/01/29 - NPFG Insured 7,650 Port of Corpus Christi Authority, Nueces County, Texas, 11/09 at 100.00 BBB 7,652,372 Revenue Refunding Bonds, Union Pacific Corporation, Series 1992, 5.350%, 11/01/10 2,000 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 BBB 2,039,100 System Revenue Refunding Bonds, Series 2002A, 5.750%, 10/01/21 - RAAI Insured 11,300 San Antonio, Texas, Electric and Gas System Revenue Refunding No Opt. Call AAA 12,395,761 Bonds, New Series 1992, 5.000%, 2/01/17 (ETM) 3,750 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 3,958,575 Texas, Limited Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%, 2/01/23 (Pre-refunded 2/01/11) 4,375 Tarrant County Cultural & Educational Facilities Financing 11/17 at 100.00 AA- 3,852,669 Corporation, Texas, Revenue Bonds, Tarrant County Health Resources, Series 2008, Trust 1197, 9.071%, 11/15/47 (IF)
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) White Settlement Independent School District, Tarrant County, Texas, General Obligation Bonds, Series 2006: $ 9,110 0.000%, 8/15/38 8/15 at 30.30 AAA $ 1,932,869 9,110 0.000%, 8/15/39 8/15 at 28.63 AAA 1,828,833 6,610 0.000%, 8/15/42 8/15 at 24.42 AAA 1,119,139 7,110 0.000%, 8/15/43 8/15 at 23.11 AAA 1,132,125 5,000 Wichita Falls, Wichita County, Texas, Priority Lien Water and 8/11 at 100.00 AA- (4) 5,372,450 Sewerage System Revenue Bonds, Series 2001, 5.000%, 8/01/22 (Pre-refunded 8/01/11) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 162,055 Total Texas 115,364,936 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 1.7% (1.1% OF TOTAL INVESTMENTS) 5,800 Carbon County, Utah, Solid Waste Disposal Revenue Refunding 2/10 at 100.00 BBB 5,817,922 Bonds, Laidlaw/ECDC Project, Guaranteed by Allied Waste Industries, Series 1995, 7.500%, 2/01/10 (Alternative Minimum Tax) 7,155 Utah Associated Municipal Power Systems, Revenue Bonds, 4/13 at 100.00 AAA 7,435,118 Payson Power Project, Series 2003A, 5.000%, 4/01/25 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 12,955 Total Utah 13,253,040 ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 2.6% (1.7% OF TOTAL INVESTMENTS) 5,000 Metropolitan Washington DC Airports Authority, Virginia, 10/26 at 100.00 AAA 3,416,200 Dulles Toll Road Revenue Bonds, Series 2009C., 0.000%, 10/01/41 - AGC Insured 4,000 Norfolk Airport Authority, Virginia, Airport Revenue 7/11 at 100.00 A 3,743,880 Refunding Bonds, Series 2001B, 5.125%, 7/01/31 - FGIC Insured (Alternative Minimum Tax) 11,040 Suffolk Redevelopment and Housing Authority, Virginia, FNMA No Opt. Call Aaa 11,566,387 Multifamily Housing Revenue Refunding Bonds, Windsor at Potomac Vista L.P. Project, Series 2001, 4.850%, 7/01/31 (Mandatory put 7/01/11) 665 Virginia Housing Development Authority, Rental Housing Bonds, 11/09 at 101.00 AA+ 671,983 Series 1999F, 5.000%, 5/01/15 (Alternative Minimum Tax) Virginia Resources Authority, Water System Revenue Refunding Bonds, Series 2002: 500 5.000%, 4/01/18 4/12 at 102.00 AA 542,125 500 5.000%, 4/01/19 4/12 at 102.00 AA 540,500 ------------------------------------------------------------------------------------------------------------------------------------ 21,705 Total Virginia 20,481,075 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 10.6% (6.8% OF TOTAL INVESTMENTS) 6,750 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 7,327,395 Bonds, Columbia Generating Station - Nuclear Project 2, Series 2002B, 5.350%, 7/01/18 - FSA Insured 2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 Aaa 2,738,325 Bonds, Columbia Generating Station - Nuclear Project 2, Series 2002C, 5.750%, 7/01/17 - NPFG Insured 3,750 FYI Properties, Washington, Lease Revenue Bonds, Washington 6/19 at 100.00 AA 3,933,750 State Department of Information Services Project, Series 2009, 5.500%, 6/01/39 6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 Aa2 6,971,406 5.625%, 2/01/24 - NPFG Insured (Alternative Minimum Tax) (UB) 13,400 Seattle, Washington, Municipal Light and Power Revenue Bonds, 12/10 at 100.00 Aa2 13,944,174 Series 2000, 5.400%, 12/01/25 5,000 Washington State Healthcare Facilities Authority, Revenue 10/16 at 100.00 AA 4,775,500 Bonds, Providence Health Care Services, Series 2006A, 4.625%, 10/01/34 - FGIC Insured (UB) 7,330 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 7,420,819 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 18,145 Washington, General Obligation Bonds, Series 2001-02A, 7/11 at 100.00 AAA 19,116,846 5.000%, 7/01/23 - FSA Insured Washington, Motor Vehicle Fuel Tax General Obligation Bonds, Series 2002C: 7,000 5.000%, 1/01/21 - FSA Insured 1/12 at 100.00 AAA 7,454,230 7,960 5.000%, 1/01/22 - FSA Insured 1/12 at 100.00 AAA 8,182,641 ------------------------------------------------------------------------------------------------------------------------------------ 78,785 Total Washington 81,865,086 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 53 NQU | Nuveen Quality Income Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.1% (1.4% OF TOTAL INVESTMENTS) Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco Settlement Asset-Backed Bonds, Series 2002: $ 130 6.125%, 6/01/27 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA $ 142,052 3,380 6.375%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,791,617 7,545 La Crosse, Wisconsin, Pollution Control Revenue Refunding 12/09 at 101.00 A3 7,746,377 Bonds, Dairyland Power Cooperative, Series 1997A, 5.450%, 9/01/14 - AMBAC Insured 3,000 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 2,917,801 Revenue Bonds, Fort Healthcare Inc., Series 2004, 5.750%, 5/01/29 2,100 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 BBB+ 1,765,912 Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 16,155 Total Wisconsin 16,363,759 ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.8% (0.5% OF TOTAL INVESTMENTS) 2,035 Campbell County, Wyoming Solid Waste Facilities Revenue 7/19 at 100.00 A+ 2,143,080 Bonds, Basin Electric Power Cooperative - Dry Fork Station Facilities, Series 2009A, 5.750%, 7/15/39 4,000 Wyoming Municipal Power Agency Power Supply System Revenue 1/18 at 100.00 A2 4,048,441 Bonds, 2008 Series A, 5.375%, 1/01/42 ------------------------------------------------------------------------------------------------------------------------------------ 6,035 Total Wyoming 6,191,521 ------------------------------------------------------------------------------------------------------------------------------------ $ 1,559,208 Total Investments (cost $1,178,627,349) - 155.7% 1,206,346,732 ===============--------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (8.6)% (66,620,000) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.8% 22,130,204 ------------------------------------------------------------------------------------------------------------------ Preferred Shares, at Liquidation Value - (49.9)% (5) (386,875,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 774,981,936 ==================================================================================================================
(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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.1%. 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. 54 Nuveen Investments NPF | Nuveen Premier Municipal Income Fund, Inc. | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.7% (1.0% OF TOTAL INVESTMENTS) $ 2,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 1,993,780 Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/39 (UB) Birmingham Special Care Facilities Financing Authority, Alabama, Revenue Bonds, Baptist Health System Inc., Series 2005A: 1,200 5.250%, 11/15/20 11/15 at 100.00 Baa2 1,156,164 400 5.000%, 11/15/30 11/15 at 100.00 Baa2 348,656 1,000 Montgomery BMC Special Care Facilities Financing Authority, 11/14 at 100.00 A3 (4) 1,141,610 Alabama, Revenue Bonds, Baptist Medical Center, Series 2004C, 5.250%, 11/15/29 (Pre-refunded 11/15/14) ------------------------------------------------------------------------------------------------------------------------------------ 4,600 Total Alabama 4,640,210 ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.2% (0.1% OF TOTAL INVESTMENTS) 1,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 664,500 Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46 ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 7.8% (4.7% OF TOTAL INVESTMENTS) Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health Network, Series 2005B: 100 5.250%, 12/01/24 12/15 at 100.00 BBB 96,363 135 5.250%, 12/01/25 12/15 at 100.00 BBB 129,198 7,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AA 5,823,510 Plaza, Series 2005B, 0.000%, 7/01/39 - FGIC Insured 7,500 Salt River Project Agricultural Improvement and Power 1/13 at 100.00 Aa1 7,739,925 District, Arizona, Electric System Revenue Bonds, Series 2002B, 5.000%, 1/01/25 (UB) 6,000 Salt River Project Agricultural Improvement and Power 1/12 at 101.00 Aa1 6,574,440 District, Arizona, Electric System Revenue Refunding Bonds, Series 2002A, 5.250%, 1/01/15 1,200 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 1,026,420 Bonds, Series 2007, 5.000%, 12/01/37 ------------------------------------------------------------------------------------------------------------------------------------ 21,935 Total Arizona 21,389,856 ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS) 2,155 Arkansas Development Finance Authority, State Facility 11/15 at 100.00 AAA 2,297,036 Revenue Bonds, Department of Correction Special Needs Unit Project, Series 2005B, 5.000%, 11/01/25 - FSA Insured 2 Stuttgart Public Facilities Board, Arkansas, Single Family 3/10 at 100.00 Aaa 2,299 Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 9/01/11 ------------------------------------------------------------------------------------------------------------------------------------ 2,157 Total Arkansas 2,299,335 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 20.9% (12.7% OF TOTAL INVESTMENTS) 10,000 Anaheim Public Finance Authority, California, Public 9/17 at 100.00 A 8,585,598 Improvement Project Lease Bonds, Series 2007A-1, 4.375%, 3/01/37 - FGIC Insured 5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 Aa2 5,797,826 Revenue Bonds, Series 2002A, 5.300%, 12/01/21 - AMBAC Insured 1,350 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 1,378,229 University of Southern California, Series 2005, 4.750%, 10/01/28 (UB) 1,975 California Health Facilities Financing Authority, Revenue No Opt. Call A 2,083,349 Bonds, Catholic Healthcare West, Series 2004I, 4.950%, 7/01/26 (Mandatory put 7/01/14) 1,700 California Health Facilities Financing Authority, Revenue 10/19 at 100.00 AA 1,725,891 Bonds, Providence Health & Services, Series 2009B, 5.500%, 10/01/39 500 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 417,230 Bonds, Daughters of Charity Health System, Series 2005A, 5.000%, 7/01/39 1,600 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 1,573,376 Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31 1,025 California Statewide Community Development Authority, Revenue 5/18 at 100.00 Aa3 1,085,847 Bonds, Sutter Health, Tender Option Bond Trust 3175, 13.552%, 11/15/48 (IF)
Nuveen Investments 55 NPF | Nuveen Premier Municipal Income Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 4,900 California, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 A $ 4,918,963 6/01/23 - AMBAC Insured 1,000 Chula Vista, California, Industrial Development Revenue 6/14 at 102.00 A2 1,052,880 Bonds, San Diego Gas and Electric Company, Series 1996A, 5.300%, 7/01/21 25,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 19,798,997 Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/17 (ETM) 3,500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 2,325,365 Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47 450 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 526,586 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13) 6,005 Los Angeles Unified School District, California, General 7/15 at 100.00 AA- 6,300,386 Obligation Bonds, Series 2005E, 5.000%, 7/01/22 - AMBAC Insured San Diego County, California, Certificates of Participation, Burnham Institute, Series 2006: 100 5.000%, 9/01/21 9/15 at 102.00 Baa3 91,922 110 5.000%, 9/01/23 9/15 at 102.00 Baa3 98,792 ------------------------------------------------------------------------------------------------------------------------------------ 64,905 Total California 57,761,237 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 11.5% (7.0% OF TOTAL INVESTMENTS) 1,000 Colorado Health Facilities Authority, Revenue Bonds, 6/16 at 100.00 A- 945,040 Evangelical Lutheran Good Samaritan Society, Series 2005, 5.000%, 6/01/29 1,150 Colorado Health Facilities Authority, Revenue Bonds, Parkview 9/14 at 100.00 A3 1,133,843 Medical Center, Series 2004, 5.000%, 9/01/25 400 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 A- 385,852 Valley Health Care, Series 2005F, 5.000%, 3/01/25 1,000 Colorado Health Facilities Authority, Revenue Bonds, Poudre 12/09 at 101.00 Aa3 (4) 1,014,560 Valley Healthcare Inc., Series 1999A, 5.750%, 12/01/23 (Pre-refunded 12/01/09) - FSA Insured 750 Colorado Health Facilities Authority, Revenue Bonds, Vail 1/15 at 100.00 BBB+ 748,148 Valley Medical Center, Series 2004, 5.000%, 1/15/17 Denver City and County, Colorado, Airport Revenue Bonds, Series 2006: 4,170 5.000%, 11/15/23 - FGIC Insured 11/16 at 100.00 A+ 4,299,645 6,800 5.000%, 11/15/24 - FGIC Insured 11/16 at 100.00 A+ 6,970,136 Denver, Colorado, Airport Revenue Bonds, Series 2006A: 6,890 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 A+ 7,104,210 8,940 5.000%, 11/15/25 - FGIC Insured (UB 11/16 at 100.00 A+ 9,120,499 ------------------------------------------------------------------------------------------------------------------------------------ 31,100 Total Colorado 31,721,933 ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.7% (0.4% OF TOTAL INVESTMENTS) 2,020 Connecticut Development Authority, Pollution Control Revenue 4/10 at 101.50 Baa1 2,026,100 Refunding Bonds, Connecticut Light and Power Company, Series 1993A, 5.850%, 9/01/28 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.7% (1.1% OF TOTAL INVESTMENTS) 1,700 Hillsborough County Industrial Development Authority, 4/10 at 101.00 N/R 1,178,440 Florida, Exempt Facilities Remarketed Revenue Bonds, National Gypsum Company, Apollo Beach Project, Series 2000B, 7.125%, 4/01/30 (Alternative Minimum Tax) 2,500 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa1 2,650,675 Florida, Pollution Control Revenue Bonds, Tampa Electric Company Project, Series 2002, 5.100%, 10/01/13 1,000 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 938,750 Revenue, Baptist Health System Obligation Group, Series 2007, 5.000%, 8/15/42 (UB) ------------------------------------------------------------------------------------------------------------------------------------ 5,200 Total Florida 4,767,865 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 4.5% (2.7% OF TOTAL INVESTMENTS) 8,050 George L. Smith II World Congress Center Authority, Atlanta, 7/10 at 101.00 A 8,060,143 Georgia, Revenue Refunding Bonds, Domed Stadium Project, Series 2000, 5.500%, 7/01/20 - NPFG Insured (Alternative Minimum Tax) 4,105 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 A1 4,351,054 Revenue Bonds, Series 2003A, 5.125%, 11/01/17 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,155 Total Georgia 12,411,197 ------------------------------------------------------------------------------------------------------------------------------------
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.8% (0.5% OF TOTAL INVESTMENTS) $ 2,250 Hawaii Department of Budget and Finance, Special Purpose 1/10 at 100.00 Baa1 $ 2,255,693 Revenue Bonds, Hawaiian Electric Company Inc., Series 1999D, 6.150%, 1/01/20 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.3% (0.2% OF TOTAL INVESTMENTS) 75 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa1 75,113 Bonds, Series 1996E, 6.350%, 7/01/14 (Alternative Minimum Tax) Madison County, Idaho, Hospital Revenue Certificates of Participation, Madison Memorial Hospital, Series 2006: 500 5.250%, 9/01/26 9/16 at 100.00 BBB- 459,070 200 5.250%, 9/01/37 9/16 at 100.00 BBB- 171,186 ------------------------------------------------------------------------------------------------------------------------------------ 775 Total Idaho 705,369 ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 10.8% (6.6% OF TOTAL INVESTMENTS) 580 Chicago Public Building Commission, Illinois, General No Opt. Call A (4) 661,652 Obligation Lease Certificates, Chicago Board of Education, Series 1990B, 7.000%, 1/01/15 - NPFG Insured (ETM) 8,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA- 4,183,275 Series 1999, 0.000%, 1/01/24 - FGIC Insured 8,500 Chicago, Illinois, Senior Lien Water Revenue Bonds, Series No Opt. Call A1 9,452,933 2001, 5.750%, 11/01/30 - AMBAC Insured 200 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 166,256 Series 2006, 5.125%, 1/01/25 1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 1,108,490 Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded 5/15/12) 1,500 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AA- 1,617,960 Series 2002, 5.500%, 2/01/17 - FGIC Insured Lombard Public Facilities Corporation, Illinois, Second Tier Conference Center and Hotel Revenue Bonds, Series 2005B: 850 5.250%, 1/01/25 1/16 at 100.00 AA 866,065 1,750 5.250%, 1/01/30 1/16 at 100.00 AA 1,789,620 Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1996A: 10,575 0.000%, 12/15/23 - NPFG Insured No Opt. Call A 5,135,960 10,775 0.000%, 12/15/24 - NPFG Insured No Opt. Call A 4,905,965 ------------------------------------------------------------------------------------------------------------------------------------ 44,400 Total Illinois 29,888,176 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.5% (2.1% OF TOTAL INVESTMENTS) 2,275 Anderson School Building Corporation, Madison County, 1/14 at 100.00 AAA 2,605,853 Indiana, First Mortgage Bonds, Series 2003, 5.500%, 7/15/23 (Pre-refunded 1/15/14) - FSA Insured 6,180 Crown Point Multi-School Building Corporation, Indiana, First No Opt. Call A 3,214,280 Mortgage Bonds, Crown Point Community School Corporation, Series 2000, 0.000%, 1/15/23 - NPFG Insured 1,250 Portage, Indiana, Revenue Bonds, Series 2006, 5.000%, 7/15/23 7/16 at 100.00 BBB+ 1,206,600 1,700 Saint Joseph County, Indiana, Educational Facilities Revenue 3/18 at 100.00 Aaa 1,777,078 Bonds, University of Notre Dame du Lac, Refunding Series 2009., 5.000%, 3/01/36 1,000 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/15 at 100.00 BB+ 820,910 Madison Center Inc., Series 2005, 5.250%, 2/15/28 ------------------------------------------------------------------------------------------------------------------------------------ 12,405 Total Indiana 9,624,721 ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.1% (0.6% OF TOTAL INVESTMENTS) 4,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 2,917,680 Revenue Bonds, Series 2005C, 5.500%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.2% (0.1% OF TOTAL INVESTMENTS) 510 Louisville and Jefferson County Metropolitan Government, 10/16 at 100.00 N/R 460,025 Kentucky, Industrial Building Revenue Bonds, Sisters of Mercy of the Americas, Series 2006, 5.000%, 10/01/35 ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 6.5% (3.9% OF TOTAL INVESTMENTS) 1,310 Louisiana Housing Finance Agency, GNMA Collateralized 3/10 at 100.00 AAA 1,311,651 Mortgage Revenue Bonds, St. Dominic Assisted Care Facility, Series 1995, 6.850%, 9/01/25
Nuveen Investments 57 NPF | Nuveen Premier Municipal Income Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA (continued) $ 1,500 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 $ 1,410,360 Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A: 825 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 810,851 8,880 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 8,326,332 5 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 3,757 Residuals 660-1, 16.460%, 5/01/41 - FGIC Insured (IF) 3,950 Morehouse Parish, Louisiana, Pollution Control Revenue Bonds, No Opt. Call BBB 4,098,797 International Paper Company, Series 2002A, 5.700%, 4/01/14 2,090 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,891,555 Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 ------------------------------------------------------------------------------------------------------------------------------------ 18,560 Total Louisiana 17,853,303 ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.9% (0.6% OF TOTAL INVESTMENTS) 2,465 Maine State Housing Authority, Single Family Mortgage 5/13 at 100.00 AA+ 2,490,414 Purchase Bonds, Series 2004A-2, 5.000%, 11/15/21 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.3% (0.8% OF TOTAL INVESTMENTS) 2,000 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A2 2,062,360 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 1,550 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 1,464,812 Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%, 7/01/36 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,550 Total Maryland 3,527,172 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 1.6% (1.0% OF TOTAL INVESTMENTS) 1,000 Massachusetts Development Finance Authority, Revenue Bonds, 10/14 at 100.00 BBB 947,290 Hampshire College, Series 2004, 5.625%, 10/01/24 3,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 A (4) 3,383,610 Bonds, Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,000 Total Massachusetts 4,330,900 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 3.9% (2.4% OF TOTAL INVESTMENTS) 2,925 Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 BB 2,595,177 5.250%, 4/01/17 - SYNCORA GTY Insured 4,600 Detroit, Michigan, Sewer Disposal System Revenue Bonds, 7/16 at 100.00 A 3,998,274 Second Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured 1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 998,630 Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31 (UB) 170 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 131,388 Memorial Hospital Corporation Revenue Bonds, Series 2006, 5.500%, 6/01/35 3,025 Wayne County, Michigan, Airport Revenue Refunding Bonds, 12/12 at 100.00 A 3,139,345 Detroit Metropolitan Airport, Series 2002C, 5.375%, 12/01/19 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,720 Total Michigan 10,862,814 ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 4.6% (2.8% OF TOTAL INVESTMENTS) 4,350 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A2 4,386,845 Inc., Series 2004, 4.950%, 7/01/22 1,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 N/R (4) 1,134,100 Facilities Revenue Bonds, Benedictine Health System - St. Mary's Duluth Clinic, Series 2004, 5.250%, 2/15/21 (Pre-refunded 2/15/14) 2,290 Minneapolis-St. Paul Housing and Redevelopment Authority, 12/13 at 100.00 Baa1 2,342,166 Minnesota, Revenue Bonds, HealthPartners Inc., Series 2003, 6.000%, 12/01/20 530 Minnesota Higher Education Facilities Authority, Revenue 10/14 at 100.00 A2 561,853 Bonds, University of St. Thomas, Series 2004-5Y, 5.250%, 10/01/19 1,000 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,059,090 Series 2004A, 5.250%, 10/01/19 3,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 12/13 at 100.00 AA+ 3,189,480 Office Building at Cedar Street, Series 2003, 5.250%, 12/01/20 ------------------------------------------------------------------------------------------------------------------------------------ 12,170 Total Minnesota 12,673,534 ------------------------------------------------------------------------------------------------------------------------------------
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.9% (0.5% OF TOTAL INVESTMENTS) $ 2,325 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA $ 2,367,803 Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%, 9/01/24 (UB) ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.1% (0.6% OF TOTAL INVESTMENTS) 100 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 95,557 Facilities Revenue Bonds, Hannibal Regional Hospital, Series 2006, 5.000%, 3/01/22 2,880 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 2,829,456 Facilities Revenue Bonds, Freeman Health System, Series 2004, 5.500%, 2/15/24 ------------------------------------------------------------------------------------------------------------------------------------ 2,980 Total Missouri 2,925,013 ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 2.2% (1.3% OF TOTAL INVESTMENTS) 1,580 Douglas County Hospital Authority 2, Nebraska, Health No Opt. Call Aa3 1,652,712 Facilities Revenue Bonds, Nebraska Medical Center, Series 2003, 5.000%, 11/15/16 1,105 Grand Island, Nebraska, Electric System Revenue Bonds, Series 3/10 at 100.00 A1 (4) 1,201,400 1977, 6.100%, 9/01/12 (ETM) 2,350 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student Loan No Opt. Call Aa2 2,477,417 Program, Series 1993A-5B, 6.250%, 6/01/18 - NPFG Insured (Alternative Minimum Tax) 515 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 782,795 System Revenue Bonds, Nebraska City 2, Series 2006A, 19.714%, 2/01/49 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 5,550 Total Nebraska 6,114,324 ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 2.3% (1.4% OF TOTAL INVESTMENTS) 1,110 New Hampshire Health and Education Facilities Authority, 6/19 at 100.00 AA+ 1,349,516 Revenue Bonds, Dartmouth College, Tender Option Bond Trust 09-7W, 13.890%, 6/01/39 (IF) 5,000 New Hampshire Housing Finance Authority, FHLMC Multifamily 7/10 at 101.00 Aaa 5,084,050 Housing Remarketed Revenue Bonds, Countryside LP, Series 1994, 6.100%, 7/01/24 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 6,110 Total New Hampshire 6,433,566 ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 5.6% (3.4% OF TOTAL INVESTMENTS) 1,000 New Jersey Economic Development Authority, School Facilities 9/15 at 100.00 AA- 1,053,260 Construction Bonds, Series 2005P, 5.250%, 9/01/24 3,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,430,920 System Bonds, Series 2003C, 5.500%, 6/15/24 (Pre-refunded 6/15/13) New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: 25,000 0.000%, 12/15/35 - AMBAC Insured No Opt. Call AA- 4,927,500 10,000 0.000%, 12/15/36 - AMBAC Insured No Opt. Call AA- 1,847,400 1,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 A+ 1,593,780 5.000%, 1/01/19 - FGIC Insured 2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 2,632,275 5.000%, 1/01/25 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 43,000 Total New Jersey 15,485,135 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 20.2% (12.2% OF TOTAL INVESTMENTS) 10,000 Dormitory Authority of the State of New York, Revenue Bonds, 5/10 at 101.00 AAA 10,381,898 State University Educational Facilities Revenue Bonds, 1999 Resolution, Series 2000B, 5.500%, 5/15/30 (Pre-refunded 5/15/10) - FSA Insured 1,500 Dormitory Authority of the State of New York, State and Local 7/14 at 100.00 AA- 1,571,250 Appropriation Lease Bonds, Upstate Community Colleges, Series 2004B, 5.250%, 7/01/19 2,200 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 1,855,150 Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured 7,500 Long Island Power Authority, New York, Electric System Revenue 6/16 at 100.00 AAA 7,939,575 Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured (UB) 5,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 A 5,143,500 Transportation Revenue Refunding Bonds, Series 2002A, 5.125%, 11/15/21 - FGIC Insured 2,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 2,112,160 Water and Sewerage System Revenue Bonds, Fiscal Series 2005B, 5.000%, 6/15/23 - AMBAC Insured 4,265 New York City, New York, General Obligation Bonds, Fiscal 10/13 at 100.00 AA 4,437,733 Series 2003D, 5.250%, 10/15/22 (UB)
Nuveen Investments 59 NPF | Nuveen Premier Municipal Income Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 1,200 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AA $ 1,319,436 Series 2004B, 5.250%, 8/01/15 4,000 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 4,226,360 2004C-1, 5.250%, 8/15/20 (UB) 910 New York Convention Center Development Corporation, Hotel Fee 11/15 at 100.00 AAA 995,613 Revenue Bonds, Trust 2364, 16.993%, 11/15/44 - AMBAC Insured (IF) 3,250 New York State Municipal Bond Bank Agency, Special School 6/13 at 100.00 A+ 3,370,055 Purpose Revenue Bonds, Series 2003C, 5.250%, 6/01/22 New York State Thruway Authority, General Revenue Bonds, Series 2005G: 6,460 5.000%, 1/01/25 - FSA Insured (UB) 7/15 at 100.00 AAA 6,747,793 2,580 5.000%, 1/01/26 - FSA Insured (UB) 7/15 at 100.00 AAA 2,685,651 1,850 New York State Urban Development Corporation, Service 3/15 at 100.00 AAA 1,942,796 Personal Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/24 - FSA Insured (UB) 1,000 New York State Urban Development Corporation, Subordinate 7/14 at 100.00 A 1,043,530 Lien Corporate Purpose Bonds, Series 2004A, 5.125%, 1/01/22 ------------------------------------------------------------------------------------------------------------------------------------ 53,715 Total New York 55,772,500 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 4.3% (2.6% OF TOTAL INVESTMENTS) 10,300 North Carolina Eastern Municipal Power Agency, Power System No Opt. Call AA- 11,766,100 Revenue Refunding Bonds, Series 1993B, 6.000%, 1/01/22 - CAPMAC Insured ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 2.8% (1.7% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: 100 5.125%, 6/01/24 6/17 at 100.00 BBB 89,066 1,050 5.875%, 6/01/30 6/17 at 100.00 BBB 913,889 1,055 5.750%, 6/01/34 6/17 at 100.00 BBB 887,202 2,355 5.875%, 6/01/47 6/17 at 100.00 BBB 1,744,867 4,000 Ohio, Solid Waste Revenue Bonds, Republic Services Inc., No Opt. Call BBB 3,896,120 Series 2004, 4.250%, 4/01/33 (Mandatory put 4/01/14) (Alternative Minimum Tax) 250 Port of Greater Cincinnati Development Authority, Ohio, 10/16 at 100.00 N/R 231,835 Economic Development Revenue Bonds, Sisters of Mercy of the Americas, Series 2006, 5.000%, 10/01/25 ------------------------------------------------------------------------------------------------------------------------------------ 8,810 Total Ohio 7,762,979 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.1% (0.7% OF TOTAL INVESTMENTS) 450 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 401,175 Revenue Bonds, Series 2005, 5.375%, 9/01/36 2,725 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 2,626,900 Revenue Bonds, Saint Francis Health System, Series 2006, 5.000%, 12/15/36 (UB) 44 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 41,119 Revenue Bonds, Saint Francis Health System, Series 2006, Trust 3500, 8.366%, 12/15/36 (IF) ------------------------------------------------------------------------------------------------------------------------------------ 3,219 Total Oklahoma 3,069,194 ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 1.2% (0.7% OF TOTAL INVESTMENTS) Oregon, General Obligation Bonds, State Board of Higher Education, Series 2004A: 1,795 5.000%, 8/01/21 8/14 at 100.00 AA 1,971,449 1,240 5.000%, 8/01/23 8/14 at 100.00 AA 1,308,386 ------------------------------------------------------------------------------------------------------------------------------------ 3,035 Total Oregon 3,279,835 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 1.9% (1.2% OF TOTAL INVESTMENTS) 2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 A 2,058,000 Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - NPFG Insured 4,500 Pennsylvania Turnpike Commission, Turnpike Subordinate 6/26 at 100.00 AAA 3,277,260 Revenue Bonds, Series 2009C, 0.000%, 6/01/33 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,500 Total Pennsylvania 5,335,260 ------------------------------------------------------------------------------------------------------------------------------------
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.8% (0.5% OF TOTAL INVESTMENTS) $ 3,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/26 at 100.00 A+ $ 2,211,990 Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/32 ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 2.1% (1.3% OF TOTAL INVESTMENTS) 5,890 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 5,938,593 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.000%, 6/01/23 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 8.4% (5.1% OF TOTAL INVESTMENTS) 2,500 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,554,200 Purchase Revenue Bonds, Securing Assets for Education, Series 2003, 5.250%, 12/01/24 4,405 Dorchester County School District 2, South Carolina, 12/14 at 100.00 AA- 4,581,949 Installment Purchase Revenue Bonds, GROWTH, Series 2004, 5.250%, 12/01/23 3,340 Greenville County School District, South Carolina, 12/13 at 100.00 AA 3,508,303 Installment Purchase Revenue Bonds, Series 2003, 5.250%, 12/01/19 (UB) 3,620 Greenville, South Carolina, Hospital Facilities Revenue 5/13 at 100.00 AA- 3,708,256 Refunding Bonds, Series 2003A, 5.250%, 5/01/21 - AMBAC Insured 310 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A3 (4) 350,601 Development Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12) 1,190 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 1,199,044 Development Revenue Bonds, Bon Secours Health System Inc., Series 2002B, 5.625%, 11/15/30 South Carolina JOBS Economic Development Authority, Hospital Refunding and Improvement Revenue Bonds, Palmetto Health Alliance, Series 2003C: 4,895 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 5,678,445 605 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 704,220 750 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 787,020 Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12) ------------------------------------------------------------------------------------------------------------------------------------ 21,615 Total South Carolina 23,072,038 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 0.6% (0.4% OF TOTAL INVESTMENTS) 1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,776,705 Revenue Bonds, Sioux Valley Hospitals, Series 2004A, 5.500%, 11/01/31 ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.4% (0.8% OF TOTAL INVESTMENTS) 2,060 Johnson City Health and Educational Facilities Board, 7/23 at 100.00 A (4) 2,087,398 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 1,600 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 1,554,128 Tennessee, Revenue Bonds, Mountain States Health Alliance, Series 2006A, 5.500%, 7/01/36 400 Sumner County Health, Educational, and Housing Facilities 11/17 at 100.00 N/R 152,040 Board, Tennessee, Revenue Refunding Bonds, Sumner Regional Health System Inc., Series 2007, 5.500%, 11/01/37 ------------------------------------------------------------------------------------------------------------------------------------ 4,060 Total Tennessee 3,793,566 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 7.2% (4.3% OF TOTAL INVESTMENTS) 1,075 Brazos River Authority, Texas, Pollution Control Revenue 10/13 at 101.00 CCC 536,264 Bonds, TXU Energy Company LLC Project, Series 2003C, 6.750%, 10/01/38 (Alternative Minimum Tax) 3,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AA 3,147,420 Bonds, Series 2004A, 5.250%, 5/15/25 - NPFG Insured Kerrville Health Facilities Development Corporation, Texas, Revenue Bonds, Sid Peterson Memorial Hospital Project, Series 2005: 400 5.250%, 8/15/21 No Opt. Call BBB- 386,328 600 5.125%, 8/15/26 No Opt. Call BBB- 548,430 2,265 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 A 2,323,731 Refunding Bonds, Transmission Services Corporation, Series 2003C, 5.250%, 5/15/25 - AMBAC Insured
Nuveen Investments 61 NPF | Nuveen Premier Municipal Income Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 290 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA $ 302,485 General Obligation Bonds, Series 2001, 5.375%, 2/15/26 1,710 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA 1,815,917 General Obligation Bonds, Series 2001, 5.375%, 2/15/26 (Pre-refunded 2/15/11) 950 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 961,020 Refunding Bonds, Series 2008, 5.750%, 1/01/38 1,000 Sabine River Authority, Texas, Pollution Control Revenue 11/15 at 100.00 CCC 446,940 Bonds, TXU Electric Company, Series 2001C, 5.200%, 5/01/28 3,000 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 2,893,470 Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%, 2/15/36 (UB) 185 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 167,281 Corporation, Texas, Revenue Bonds, Texas Health Resources Project, Trust 1031, 11.996%, 2/15/36 (IF) Texas Tech University, Financing System Revenue Bonds, 9th Series 2003: 3,525 5.250%, 2/15/18 - AMBAC Insured 8/13 at 100.00 AA 3,811,160 2,250 5.250%, 2/15/19 - AMBAC Insured 8/13 at 100.00 AA 2,427,210 ------------------------------------------------------------------------------------------------------------------------------------ 20,250 Total Texas 19,767,656 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.1% (0.1% OF TOTAL INVESTMENTS) 325 Utah Housing Corporation, Single Family Mortgage Bonds, 7/11 at 100.00 Aaa 328,221 Series 2001D, 5.500%, 1/01/21 (Alternative Minimum Tax) 25 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100.00 Aaa 25,040 Series 1996C, 6.450%, 7/01/14 (Alternative Minimum Tax) 30 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100.00 Aaa 30,906 Series 1997F, 5.750%, 7/01/15 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 380 Total Utah 384,167 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 6.8% (4.1% OF TOTAL INVESTMENTS) 2,000 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 Aaa 2,190,660 Bonds, Columbia Generating Station - Nuclear Project 2, Series 2002C, 5.750%, 7/01/17 - NPFG Insured 7,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 7,800,660 Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16 (UB) 3,160 King County Public Hospital District 2, Washington, Limited 6/11 at 101.00 AA- 3,225,633 Tax General Obligation Bonds, Evergreen Hospital Medical Center, Series 2001A, 5.250%, 12/01/24 - AMBAC Insured 1,000 Skagit County Public Hospital District 1, Washington, Revenue No Opt. Call Baa2 999,000 Bonds, Skagit Valley Hospital, Series 2003, 6.000%, 12/01/23 4,280 Washington, General Obligation Refunding Bonds, Series 1992A No Opt. Call AA+ 4,426,162 and 1992AT-6, 6.250%, 2/01/11 ------------------------------------------------------------------------------------------------------------------------------------ 17,440 Total Washington 18,642,115 ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 1.7% (1.0% OF TOTAL INVESTMENTS) 2,000 West Virginia Water Development Authority, Infrastructure 10/13 at 101.00 AAA 2,324,320 Revenue Bonds, Series 2003A, 5.500%, 10/01/23 (Pre-refunded 10/01/13) - AMBAC Insured 2,150 West Virginia Water Development Authority, Loan Program II 11/13 at 101.00 A- 2,247,954 Revenue Bonds, Series 2003B, 5.250%, 11/01/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,150 Total West Virginia 4,572,274 ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 6.2% (3.7% OF TOTAL INVESTMENTS) 5,670 Wisconsin Health and Educational Facilities Authority, 7/11 at 100.00 A- 5,727,607 Revenue Bonds, Agnesian Healthcare Inc., Series 2001, 6.000%, 7/01/30 160 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 131,341 Revenue Bonds, Divine Savior Healthcare, Series 2006, 5.000%, 5/01/32 1,000 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 998,310 Revenue Bonds, Fort Healthcare Inc., Series 2004, 5.375%, 5/01/18
62 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN (continued) $ 205 Wisconsin Health and Educational Facilities Authority, 10/11 at 101.00 AA- $ 207,888 Revenue Bonds, Froedtert and Community Health Obligated Group, Series 2001, 5.375%, 10/01/30 2,145 Wisconsin Health and Educational Facilities Authority, 10/11 at 101.00 AA- (4) 2,347,681 Revenue Bonds, Froedtert and Community Health Obligated Group, Series 2001, 5.375%, 10/01/30 (Pre-refunded 10/01/11) 5,000 Wisconsin Health and Educational Facilities Authority, 2/10 at 101.00 BBB+ 5,054,350 Revenue Bonds, Marshfield Clinic, Series 1999, 6.250%, 2/15/18 - RAAI Insured 2,500 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AA 2,591,500 4.750%, 5/01/25 - FGIC Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 16,680 Total Wisconsin 17,058,677 ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.5% (0.3% OF TOTAL INVESTMENTS) 1,350 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB+ 1,269,042 Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ $ 503,986 Total Long-Term Investments (cost $442,698,590) - 164.7% 454,070,566 ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 0.5% (0.3% OF TOTAL INVESTMENTS) TEXAS - 0.5% (0.3% OF TOTAL INVESTMENTS) $ 1,300 Red River Authority, Texas, Pollution Control Revenue Bonds, 11/09 at 100.00 A-1+ 1,300,000 Southwestern Public Service Company, Variable Rate Demand Obligations, Series 1996, 8.500%, 7/01/16 - AMBAC Insured (5) ===============--------------------------------------------------------------------------------------------------------------------- Total Short-Term Investments (cost $1,300,000) 1,300,000 ------------------------------------------------------------------------------------------------------------------ Total Investments (cost $443,998,590) - 165.2% 455,370,566 ------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (21.9)% (60,373,400) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.7% 7,523,957 ------------------------------------------------------------------------------------------------------------------ Preferred Shares, at Liquidation Value - (46.0)% (6) (126,850,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 275,671,123 ==================================================================================================================
(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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 27.9%. 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 63 NMZ | Nuveen Municipal High Income Opportunity Fund | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NATIONAL - 2.1% (1.6% OF TOTAL INVESTMENTS) Charter Mac Equity Issuer Trust, Preferred Shares, Series 2004A-4: $ 1,000 5.750%, 12/31/45 (Mandatory put 4/30/15) (Alternative Minimum Tax) 4/15 at 100.00 Aaa $ 1,023,030 5,000 6.000%, 12/31/45 (Mandatory put 4/30/19) (Alternative Minimum Tax) 4/19 at 100.00 Aaa 5,157,750 ------------------------------------------------------------------------------------------------------------------------------------ 6,000 Total National 6,180,780 ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.1% (0.8% OF TOTAL INVESTMENTS) 2,000 Bessemer, Alabama, General Obligation Warrants, Series 2007, 2/17 at 102.00 N/R 1,422,760 6.500%, 2/01/37 2,000 Birmingham Special Care Facilities Financing Authority, 11/15 at 100.00 Baa2 1,743,280 Alabama, Revenue Bonds, Baptist Health System Inc., Series 2005A, 5.000%, 11/15/30 ------------------------------------------------------------------------------------------------------------------------------------ 4,000 Total Alabama 3,166,040 ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.2% (0.1% OF TOTAL INVESTMENTS) 450 Alaska Municipal Bond Bank Authority, Revenue Bonds, Series 9/18 at 100.00 A+ 480,119 2009, 5.625%, 9/01/29 ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 6.3% (4.7% OF TOTAL INVESTMENTS) 436 Estrella Mountain Ranch Community Facilities District, 7/10 at 102.00 N/R 439,641 Goodyear, Arizona, Special Assessment Lien Bonds, Series 2001A, 7.875%, 7/01/25 2,000 Maricopa County Industrial Development Authority, Arizona, 11/09 at 100.00 N/R 1,983,820 Multifamily Housing Revenue Bonds, Privado Park Apartments Project, Series 2006A, 5.250%, 11/01/41 (Mandatory put 11/01/11) (Alternative Minimum Tax) 6,720 Maricopa County Industrial Development Authority, Arizona, 1/11 at 103.00 CC 5,254,234 Senior Living Facility Revenue Bonds, Christian Care Mesa II Inc., Series 2004A, 6.625%, 1/01/34 (Alternative Minimum Tax) Phoenix Industrial Development Authority, Arizona, Educational Revenue Bonds, Keystone Montessori School, Series 2004A: 195 6.375%, 11/01/13 11/11 at 103.00 N/R 195,443 790 7.250%, 11/01/23 11/11 at 103.00 N/R 756,931 1,715 7.500%, 11/01/33 11/11 at 103.00 N/R 1,647,000 550 Pima County Industrial Development Authority, Arizona, 12/14 at 100.00 BBB- 463,881 Charter School Revenue Bonds, Noah Webster Basic Schools Inc., Series 2004, 6.125%, 12/15/34 500 Pima County Industrial Development Authority, Arizona, No Opt. Call AAA 599,080 Charter School Revenue Bonds, Pointe Educational Services Charter School, Series 2004, 6.250%, 7/01/14 (ETM) 1,150 Pinal County Industrial Development Authority, Arizona, 10/12 at 100.00 BBB- 1,093,995 Correctional Facilities Contract Revenue Bonds, Florence West Prison LLC, Series 2002A, 5.250%, 10/01/22 - ACA Insured Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Series 2007: 1,000 5.500%, 12/01/29 No Opt. Call A 983,480 2,500 5.000%, 12/01/37 No Opt. Call A 2,138,375 Surprise Municipal Property Corporation, Arizona, Wastewater System Revenue Bonds, Series 2007: 1,000 4.700%, 4/01/22 4/14 at 100.00 N/R 869,780 1,000 4.900%, 4/01/32 4/17 at 100.00 N/R 809,840 1,000 Tucson Industrial Development Authority, Arizona, Charter 9/14 at 100.00 BBB- 873,910 School Revenue Bonds, Arizona Agribusiness and Equine Center Charter School, Series 2004A, 5.850%, 9/01/24 ------------------------------------------------------------------------------------------------------------------------------------ 20,556 Total Arizona 18,109,410 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 10.0% (7.5% OF TOTAL INVESTMENTS) 1,810 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 1,348,631 Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 5.125%, 6/01/38 815 California Health Facilities Financing Authority, Hospital 11/09 at 100.00 N/R 540,264 Revenue Bonds, Downey Community Hospital, Series 1993, 5.750%, 5/15/15 3,000 California Health Facilities Financing Authority, Revenue 8/18 at 100.00 Aa3 2,377,620 Bonds, Sutter Health, Tender Option Bond Trust 3103, 14.572%, 8/15/38 (IF) 4,000 California Statewide Communities Development Authority, No Opt. Call BB 2,653,480 Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax)
64 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 2,925 California Statewide Community Development Authority, Revenue 3/14 at 102.00 N/R $ 2,889,842 Bonds, Epidaurus Project, Series 2004A, 7.750%, 3/01/34 2,185 California Statewide Community Development Authority, Revenue 5/18 at 100.00 Aa3 1,730,476 Bonds, Sutter Health, Tender Option Bond Trust 3048, 12.356%, 11/15/38 (IF) California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender Option Bond Trust 3102: 890 14.611%, 11/15/38 (IF) 5/18 at 100.00 Aa3 704,862 1,200 15.443%, 11/15/48 (IF) 5/18 at 100.00 Aa3 1,013,232 1,005 California Statewide Community Development Authority, 1/14 at 100.00 N/R 920,831 Subordinate Lien Multifamily Housing Revenue Bonds, Corona Park Apartments, Series 2004I-S, 7.750%, 1/01/34 (Alternative Minimum Tax) 1,000 Goden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 706,600 Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bonds Trust 3107, 17.473%, 6/01/45 - AMBAC Insured (IF) 500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 369,440 Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.750%, 6/01/47 1,015 Independent Cities Lease Finance Authority, California, 5/14 at 100.00 N/R 918,930 Subordinate Lien Revenue Bonds, El Granada Mobile Home Park, Series 2004B, 6.500%, 5/15/44 1,200 Lake Elsinore, California, Special Tax Bonds, Community 9/13 at 102.00 N/R 1,071,804 Facilities District 2003-2 Improvement Area A, Canyon Hills, Series 2004A, 5.950%, 9/01/34 335 Lancaster Redevelopment Agency Combined Project Areas, 8/19 at 100.00 A 355,448 Housing Programs, California, Tax Allocation Bonds 2009, 6.875%, 8/01/39 3,400 Lee Lake Water District, Riverside County, California, 9/13 at 102.00 N/R 2,729,384 Special Tax Bonds, Community Facilities District 3, Series 2004, 5.950%, 9/01/34 2,950 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- 2,824,271 California, Sublease Revenue Bonds, Los Angeles International Airport, American Airlines Inc. Terminal 4 Project, Series 2002C, 7.500%, 12/01/24 (Alternative Minimum Tax) 800 Moreno Valley Unified School District, Riverside County, 9/14 at 100.00 N/R 691,424 California, Special Tax Bonds, Community Facilities District, Series 2004, 5.550%, 9/01/29 1,000 M-S-R Energy Authority, Gas Revenue Bonds, California, No Opt. Call A 1,067,730 Citigroup Prepay Contracts, Series 2009B, 6.500%, 11/01/39 1,250 San Diego County, California, Certificates of Participation, 9/12 at 100.00 Ba1 1,054,913 San Diego-Imperial Counties Developmental Services Foundation Project, Series 2002, 5.500%, 9/01/27 3,895 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 2,991,516 Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39 ------------------------------------------------------------------------------------------------------------------------------------ 35,175 Total California 28,960,698 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 6.8% (5.1% OF TOTAL INVESTMENTS) 910 Bradburn Metropolitan District 3, Colorado, General 12/13 at 101.00 N/R 782,737 Obligation Bonds, Series 2003, 7.500%,12/01/33 6 Buffalo Ridge Metropolitan District, Colorado, Limited 12/13 at 101.00 N/R 5,743 Obligation Assessment Bonds, Series 2003, 7.500%, 12/01/33 400 Colorado Educational and Cultural Facilities Authority, 12/10 at 101.00 N/R (4) 429,332 Charter School Revenue Bonds, Academy Charter School - Douglas County School District Re. 1, Series 2000, 6.875%, (Pre-refunded 12/15/10) 650 Colorado Educational and Cultural Facilities Authority, 9/11 at 100.00 Ba1 (4) 726,057 Charter School Revenue Bonds, Bromley East Charter School, Series 2000A, 7.250%, 9/15/30 (Pre-refunded 9/15/11) 3,500 Colorado Educational and Cultural Facilities Authority, 5/14 at 101.00 N/R 2,834,650 Charter School Revenue Bonds, Cesar Chavez Academy, Series 2003, 8.000%, 5/01/34 455 Colorado Educational and Cultural Facilities Authority, 12/11 at 100.00 AAA 515,356 Charter School Revenue Bonds, Excel Academy Charter School, Series 2003, 7.300%, 12/01/23 (Pre-refunded 12/01/11) 1,000 Colorado Educational and Cultural Facilities Authority, 2/16 at 101.00 N/R 771,940 Charter School Revenue Bonds, Jefferson County School District R-1 - Compass Montessori Secondary School, Series 2006, 5.625%, 2/15/36
Nuveen Investments 65 NMZ | Nuveen Municipal High Income Opportunity Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ COLORADO (continued) Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health Initiatives, Series 2006A, Trust 1088: $ 1,335 14.052%, 9/01/41 (IF) 9/16 at 100.00 AA $ 1,115,806 345 13.414%, 9/01/41 (IF) 9/16 at 100.00 AA 288,354 1,200 Colorado Health Facilities Authority, Colorado, Revenue 4/18 at 100.00 AAA 1,252,248 Bonds, Catholic Health Initiatives, Series 2006C-1, Trust 1090, 14.965%, 10/01/41 - FSA Insured (IF) 3,145 Kit Carson County Health Service District, Colorado, Health No Opt. Call N/R 2,863,648 Care Facility Revenue Bonds, Series 2007, 6.750%, 1/01/34 1,250 Mesa County, Colorado, Residential Care Facilities Mortgage 12/11 at 101.00 BBB- 1,174,250 Revenue Bonds, Hilltop Community Resources Inc. Obligated Group, Series 2001A, 5.250%, 12/01/21 - RAAI Insured 1,000 Mountain Shadows Metropolitan District, Colorado, General 12/16 at 100.00 N/R 697,670 Obligation Limited Tax Bonds, Series 2007, 5.500%, 12/01/27 1,995 Park Creek Metropolitan District, Colorado, Limited Tax 12/13 at 100.00 N/R 2,062,690 Obligation Revenue Bonds, Series 2003CR-2, 7.875%, 12/01/32 (Mandatory put 12/01/13) 3,565 Public Authority for Colorado Energy, Natural Gas Revenue No Opt. Call A 3,752,804 Bonds, Colorado Springs Utilities, Series 2008, 6.500%, 11/15/38 500 Tallyn's Reach Metropolitan District 3, Aurora, Colorado, 12/13 at 100.00 N/R 507,060 Limited Tax General Obligation Bonds, Series 2004, 6.750%, 12/01/33 ------------------------------------------------------------------------------------------------------------------------------------ 21,256 Total Colorado 19,780,345 ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.1% (0.1% OF TOTAL INVESTMENTS) 225 District of Columbia Tobacco Settlement Corporation, Tobacco No Opt. Call BBB 213,091 Settlement Asset-Backed Bonds, Series 2001, 6.500%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 12.3% (9.2% OF TOTAL INVESTMENTS) 1,490 Aberdeen Community Development District, Florida, Special 5/14 at 100.00 N/R 855,156 Assessment Bonds, Series 2005, 5.500%, 5/01/36 7,445 Beacon Lakes Community Development District, Florida, Special 5/13 at 101.00 N/R 6,430,768 Assessment Bonds, Series 2003A, 6.900%, 5/01/35 700 Broward County, Florida, Airport Facility Revenue Bonds, 11/14 at 101.00 Ba2 726,096 Learjet Inc., Series 2000, 7.500%, 11/01/20 (Alternative Minimum Tax) 1,120 Century Gardens Community Development District, Miami-Dade 5/14 at 101.00 N/R 1,014,115 County, Florida, Special Assessment Revenue Bonds, Series 2004, 5.900%, 5/01/34 8,360 Harmony Community Development District, Florida, Special 5/14 at 103.25 N/R 8,572,846 Assessment Bonds, Series 2001, 7.250%, 5/01/32 415 Islands at Doral Northeast Community Development District, 5/14 at 101.00 N/R 401,658 Miami-Dade County, Florida, Special Assessment Bonds, Series 2004, 6.125%, 5/01/24 3,000 Jacksonville, Florida, Economic Development Commission Health 9/17 at 100.00 N/R 2,842,170 Care Facilities Revenue Bonds, The Florida Proton Therapy Institute Project, Series 2007, 6.250%, 9/01/27 2,000 Martin County Industrial Development Authority, Florida, 12/09 at 100.00 BB+ 2,000,500 Industrial Development Revenue Bonds, Indiantown Cogeneration LP, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax) 1,600 Miami-Dade County, Florida, Aviation Revenue Bonds, Series 10/18 at 100.00 AAA 1,524,080 2008, Trust 1145, 11.664%, 10/01/38 - AGC Insured (Alternative Minimum Tax) (IF) 970 Old Palm Community Development District, Florida, Special 5/15 at 101.00 N/R 708,798 Assessment Bonds, Palm Beach Gardens, Series 2004A, 5.900%, 5/01/35 3,710 Palm Beach County Housing Finance Authority, Florida, 7/12 at 100.00 N/R 3,117,736 Multifamily Housing Revenue Bonds, Lake Delray Apartments, Series 1999A, 6.400%, 1/01/31 (Alternative Minimum Tax) 1,955 Pine Island Community Development District, Florida, Special 5/12 at 101.00 N/R 1,246,567 Assessment Bonds, Bella Collina, Series 2004, 5.750%, 5/01/35 1,000 Sarasota County Health Facility Authority, Florida, Revenue 7/17 at 100.00 N/R 744,890 Bonds, Sarasota-Manatee Jewish Housing Council, Inc., Series 2007, 5.750%, 7/01/45
66 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 970 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R $ 624,011 Assessment Bonds, Series 2006, 5.400%, 5/01/37 1,715 Tolomato Community Development District, Florida, Special 5/18 at 100.00 N/R 1,314,736 Assessment Bonds, Series 2007, 6.650%, 5/01/40 Westchester Community Development District 1, Florida, Special Assessment Bonds, Series 2003: 130 6.000%, 5/01/23 5/13 at 101.00 N/R 101,052 4,735 6.125%, 5/01/35 5/13 at 101.00 N/R 3,308,534 ------------------------------------------------------------------------------------------------------------------------------------ 41,315 Total Florida 35,533,713 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.1% (0.8% OF TOTAL INVESTMENTS) 500 Effingham County Development Authority, Georgia, Solid Waste 7/10 at 100.00 BB- 463,170 Disposal Revenue Bonds, Ft. James Project, Series 1998, 5.625%, 7/01/18 (Alternative Minimum Tax) (5) 1,000 Fulton County Residential Care Facilities Authority, Georgia, 7/17 at 100.00 N/R 666,490 Revenue Bonds, Elderly Care, Lenbrook Square Project, Series 2006A, 5.125%, 7/01/37 1,890 Fulton County Residential Care Facilities Authority, Georgia, 12/13 at 102.00 N/R 1,895,254 Revenue Bonds, St. Anne's Terrace, Series 2003, 7.625%, 12/01/33 ------------------------------------------------------------------------------------------------------------------------------------ 3,390 Total Georgia 3,024,914 ------------------------------------------------------------------------------------------------------------------------------------ GUAM - 0.5% (0.4% OF TOTAL INVESTMENTS) 1,445 Guam Government, General Obligation Bonds, 2009 Series A, No Opt. Call B+ 1,567,522 7.000%, 11/15/39 ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 0.9% (0.7% OF TOTAL INVESTMENTS) 1,000 Hawaii State Department of Budget and Finance, Private School 2/17 at 100.00 N/R 768,350 Revenue Bonds, Montessori of Maui, Series 2007, 5.500%, 1/01/37 1,655 Hawaii State Department of Budget and Finance, Special 7/19 at 100.00 Baa1 1,767,441 Purpose Revenue Bonds, Hawaiian Electric Company, Inc. and Subsidiary Projects, Series 2009, 6.500%, 7/01/39 ------------------------------------------------------------------------------------------------------------------------------------ 2,655 Total Hawaii 2,535,791 ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 8.4% (6.2% OF TOTAL INVESTMENTS) 1,700 Chicago, Illinois, Certificates of Participation Tax 6/09 at 100.00 N/R 1,695,342 Increment Revenue Notes, Chicago/Kingsbury Redevelopment Project, Series 2004A, 6.570%, 2/15/13 990 Chicago, Illinois, Certificates of Participation, Tax 7/11 at 100.00 N/R 914,067 Increment Allocation Revenue Bonds, Diversey-Narragansett Project, Series 2006, 7.460%, 2/15/26 1,000 Illinois Finance Authority, Revenue Bonds, Midwest Regional 10/16 at 100.00 N/R 696,410 Medical Center Galena-Stauss Hospital, Series 2006, 6.750%, 10/01/46 1,000 Illinois Finance Authority, Revenue Bonds, Provena Health, 8/19 at 100.00 BBB+ 1,124,880 Series 2009A, 7.750%, 8/15/34 3,850 Illinois Finance Authority, Revenue Bonds, Silver Cross 8/19 at 100.00 BBB 4,052,279 Hospital and Medical Centers, Series 2009, 7.000%, 8/15/44 1,350 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 1,342,062 Revenue Refunding Bonds, Sinai Health System, Series 2003, 5.150%, 2/15/37 1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 1,108,490 Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded 5/15/12) 7,800 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/12 at 100.00 A- 7,810,764 Forest Hospital, Series 2002A, 5.750%, 7/01/29 (UB) 1,150 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R 978,524 Conference Center and Hotel Revenue Bonds, Series 2005A-1, 7.125%, 1/01/36 1,369 Lombard Public Facilities Corporation, Illinois, Third Tier 7/18 at 100.00 N/R 835,452 Conference Center and Hotel Revenue Bonds, Series 2005C-3, 4.000%, 1/01/36 2,004 Plano Special Service Area 1, Illinois, Special Tax Bonds, 3/14 at 102.00 N/R 1,766,887 Lakewood Springs Project, Series 2004A, 6.200%, 3/01/34
Nuveen Investments 67 NMZ | Nuveen Municipal High Income Opportunity Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 998 Volo Village, Illinois, Special Service Area 3 Special Tax 3/16 at 102.00 N/R $ 720,227 Bonds, Symphony Meadows Project 1, Series 2006, 6.000%, 3/01/36 (Mandatory put 2/29/16) 1,000 Yorkville United City Business District, Illinois, Storm 1/17 at 102.00 N/R 440,810 Water and Water Improvement Project Revenue Bonds, Series 2007, 6.000%, 1/01/26 960 Yorkville, Illinois, Special Service Area 2005-108 Assessment 3/16 at 102.00 N/R 674,246 Bonds, Autumn Creek Project, Series 2006, 6.000%, 3/01/36 ------------------------------------------------------------------------------------------------------------------------------------ 26,171 Total Illinois 24,160,440 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 10.7% (8.0% OF TOTAL INVESTMENTS) 6,360 Carmel Redevelopment District, Indiana, Tax Increment Revenue 7/12 at 103.00 N/R 5,488,044 Bonds, Series 2004A, 6.650%, 1/15/24 22,770 Indiana Finance Authority, Water Facilities Refunding Revenue 10/16 at 100.00 Baa1 18,946,689 Bonds, Indiana-American Water Company Inc. Project, Series 2006, 4.875%, 10/01/36 - AMBAC Insured (Alternative Minimum Tax) 1,250 Indiana Health and Educational Facility Financing Authority, 11/16 at 100.00 Aa1 1,231,963 Revenue Bonds, Ascension Health, Series 2009, Trust 3301, 14.271%, 11/15/39 (IF) 2,500 Indiana Health Facility Financing Authority, Hospital Revenue 3/14 at 101.00 BBB 2,523,325 Bonds, Community Foundation of Northwest Indiana, Series 2004A, 6.000%, 3/01/34 200 Jasper County, Indiana, Economic Development Revenue 4/10 at 101.00 B2 198,698 Refunding Bonds, Georgia Pacific Corporation Project, Series 2000, 6.700%, 4/01/29 (Alternative Minimum Tax) (5) 1,000 St. Joseph County, Indiana, Economic Development Revenue 7/15 at 103.00 N/R 919,340 Bonds, Chicago Trail Village Apartments, Series 2005A, 7.500%, 7/01/35 1,560 Whitley County, Indiana, Solid Waste and Sewerage Disposal 11/10 at 102.00 N/R 1,485,916 Revenue Bonds, Steel Dynamics Inc., Series 1998, 7.250%, 11/01/18 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 35,640 Total Indiana 30,793,975 ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,000 Iowa Finance Authority, Health Facility Revenue Bonds, Care 7/16 at 100.00 BB+ 798,530 Initiatives Project, Series 2006A, 5.500%, 7/01/25 ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 5.8% (4.4% OF TOTAL INVESTMENTS) 5,000 Louisiana Local Government Environmental Facilities & 11/17 at 100.00 BB 4,824,950 Community Development Authority, Revenue Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32 1,000 Louisiana Local Government Environmental Facilities and 9/16 at 100.00 N/R 514,770 Community Development Authority, Carter Plantation Hotel Project Revenue Bonds, Series 2006A, 6.000%, 9/01/36 1,000 Louisiana Local Government Environmental Facilities and 6/16 at 101.00 N/R 869,870 Community Development Authority, Revenue Bonds, CDF Healthcare of Louisiana LLC, Series 2006A, 7.000%, 6/01/36 3,000 Louisiana Local Government Environmental Facilities and 12/17 at 100.00 N/R 2,221,110 Community Development Authority, Revenue Bonds, Southgate Suites Hotel LLC Project, Series 2007A, 6.750%, 12/15/37 Ouachita Parish Industrial Development Authority, Louisiana, Solid Waste Disposal Revenue Bonds, White Oaks Project, Series 2004A: 815 8.250%, 3/01/19 (Alternative Minimum Tax) 3/10 at 102.00 N/R 760,281 805 8.500%, 3/01/24 (Alternative Minimum Tax) 3/10 at 102.00 N/R 747,217 5,125 St. James Parish, Louisiana, Solid Waste Disposal Revenue 4/11 at 100.00 N/R 5,124,231 Bonds, Freeport McMoran Project, Series 1992, 7.700%, 10/01/22 (Alternative Minimum Tax) 2,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,810,100 Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 ------------------------------------------------------------------------------------------------------------------------------------ 18,745 Total Louisiana 16,872,529 ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 1.0% (0.7% OF TOTAL INVESTMENTS) 3,155 Portland Housing Development Corporation, Maine, Section 8 2/14 at 102.00 Baa2 2,849,848 Assisted Senior Living Revenue Bonds, Avesta Housing Development Corporation, Series 2004A, 6.000%, 2/01/34 ------------------------------------------------------------------------------------------------------------------------------------
68 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.2% (0.9% OF TOTAL INVESTMENTS) $ 1,000 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 $ 857,060 Revenue Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insured 2,000 Maryland Energy Financing Administration, Revenue Bonds, AES 3/10 at 100.00 N/R 2,000,520 Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 350 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A2 356,451 Revenue Bonds, MedStar Health, Series 2004, 5.500%, 8/15/33 435 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/10 at 100.00 B3 289,845 Health Corporation, Series 1994, 5.300%, 7/01/24 ------------------------------------------------------------------------------------------------------------------------------------ 3,785 Total Maryland 3,503,876 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.5% (0.4% OF TOTAL INVESTMENTS) 465 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 416,245 Resource Recovery Revenue Bonds, Eco/Springfield LLC, Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax) 1,350 Massachusetts Health and Educational Facilities Authority, 7/14 at 100.00 BB 1,144,017 Revenue Bonds, Northern Berkshire Community Services Inc., Series 2004B, 6.375%, 7/01/34 ------------------------------------------------------------------------------------------------------------------------------------ 1,815 Total Massachusetts 1,560,262 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 4.2% (3.1% OF TOTAL INVESTMENTS) 1,210 Countryside Charter School, Berrien County, Michigan, Charter 4/10 at 100.00 N/R 1,049,022 School Revenue Bonds, Series 1999, 7.000%, 4/01/29 855 Countryside Charter School, Berrien County, Michigan, Charter 4/10 at 100.00 N/R 828,777 School Revenue Bonds, Series 2000, 8.000%, 4/01/29 Detroit Local Development Finance Authority, Michigan, Tax Increment Bonds, Series 1998A: 1,410 5.500%, 5/01/21 11/09 at 101.00 B- 562,195 15 5.500%, 5/01/21 - ACA Insured 5/10 at 100.00 B- 5,981 Garden City Hospital Finance Authority, Michigan, Revenue Bonds, Garden City Hospital Obligated Group, Series 2007A: 1,000 4.875%, 8/15/27 8/17 at 100.00 N/R 644,330 1,000 5.000%, 8/15/38 8/17 at 100.00 N/R 581,470 1,000 Michigan Public Educational Facilities Authority, Limited 11/15 at 100.00 BBB 1,001,960 Obligation Revenue Bonds, Chandler Park Academy Project, Series 2008, 6.500%, 11/01/35 1,000 Michigan Public Educational Facilities Authority, Limited 9/17 at 100.00 BBB- 710,130 Obligation Revenue Bonds, Richfield Public School Academy, Series 2007, 5.000%, 9/01/36 3,580 Michigan State Hospital Finance Authority, Hospital Revenue 2/10 at 100.00 BB- 3,069,778 Refunding Bonds, Detroit Medical Center Obligated Group, Series 1993B, 5.500%, 8/15/23 500 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 571,985 Chelsea Community Hospital, Series 2005, 5.000%, 5/15/30 (Pre-refunded 5/15/15) 1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 11/15 at 102.00 N/R 1,323,750 Hills and Dales General Hospital, Series 2005A, 6.750%, 11/15/38 1,000 Royal Oak Hospital Finance Authority, Michigan, Hospital 9/18 at 100.00 A1 1,165,150 Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 1,000 Summit Academy North Charter School, Michigan, Charter School 11/15 at 100.00 BB+ 659,310 Revenue Bonds, Series 2005, 5.500%, 11/01/30 ------------------------------------------------------------------------------------------------------------------------------------ 15,070 Total Michigan 12,173,838 ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.6% (1.2% OF TOTAL INVESTMENTS) Minneapolis, Minnesota, Student Housing Revenue Bonds, Riverton Community Housing Project, Series 2000: 100 7.200%, 7/01/14 (Pre-refunded 7/01/10) 7/10 at 100.00 N/R (4) 104,318 100 7.300%, 7/01/15 (Pre-refunded 7/01/10) 7/10 at 100.00 N/R (4) 104,382 1,325 Ramsey, Anoka County, Minnesota, Charter School Lease Revenue 6/14 at 102.00 N/R 1,207,367 Bonds, PACT Charter School, Series 2004A, 6.750%, 12/01/33
Nuveen Investments 69 NMZ | Nuveen Municipal High Income Opportunity Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA (continued) $ 1,390 St. Paul Housing and Redevelopment Authority, Minnesota, 6/14 at 102.00 N/R $ 1,317,748 Charter School Revenue Bonds, Higher Ground Academy Charter School, Series 2004A, 6.625%, 12/01/23 1,100 St. Paul Housing and Redevelopment Authority, Minnesota, 6/14 at 102.00 N/R 1,002,342 Charter School Revenue Bonds, HOPE Community Academy Charter School, Series 2004A, 6.750%, 12/01/33 1,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 5/15 at 100.00 N/R 912,210 HealthEast Midway Campus, Series 2005B, 6.000%, 5/01/30 ------------------------------------------------------------------------------------------------------------------------------------ 5,015 Total Minnesota 4,648,367 ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 0.6% (0.4% OF TOTAL INVESTMENTS) 926 Mississippi Home Corporation, Multifamily Housing Revenue 10/19 at 101.00 N/R 664,011 Bonds, Tupelo Personal Care Apartments, Series 2004-2, 6.125%, 9/01/34 (Alternative Minimum Tax) 1,000 Warren County, Mississippi, Gulf Opportunity Zone Revenue 9/18 at 100.00 BBB 1,021,430 Bonds, International Paper Company Project, Series 2008A, 6.500%, 9/01/32 ------------------------------------------------------------------------------------------------------------------------------------ 1,926 Total Mississippi 1,685,441 ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 3.0% (2.2% OF TOTAL INVESTMENTS) 2,000 Branson Regional Airport Transportation Development District, 7/17 at 100.00 N/R 1,294,940 Missouri, Project Revenue Bonds, Series 2007B, 6.000%, 7/01/37 (Alternative Minimum Tax) 1,000 Hanley Road Corridor Transportation Development District, 10/19 at 100.00 A- 1,010,800 Brentwood and Maplewood, Missouri, Transportation Sales Revenue Bonds, Series 2009, 5.875%, 10/01/36 5,935 Missouri Environmental Improvement and Energy Resources 12/16 at 100.00 AAA 5,261,615 Authority, Water Facility Revenue Bonds, Missouri-American Water Company, Series 2006, 4.600%, 12/01/36 - AMBAC Insured (Alternative Minimum Tax) (UB) 1,300 Saint Louis Industrial Development Authority, Missouri, Saint 12/10 at 102.00 Ca 452,465 Louis Convention Center Headquarters Hotel Project, Series 2000A, 7.250%, 12/15/35 (Alternative Minimum Tax) (6) 795 Saint Louis, Missouri, Tax Increment Financing Revenue Bonds, 6/10 at 100.00 N/R 569,506 Grace Lofts Redevelopment Projects, Series 2007A, 6.000%, 3/27/26 ------------------------------------------------------------------------------------------------------------------------------------ 11,030 Total Missouri 8,589,326 ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 1.9% (1.4% OF TOTAL INVESTMENTS) 5,200 Montana Board of Investments, Exempt Facility Revenue Bonds, 7/10 at 101.00 B- 3,770,832 Stillwater Mining Company, Series 2000, 8.000%, 7/01/20 (Alternative Minimum Tax) 2,000 Montana Board of Investments, Resource Recovery Revenue No Opt. Call N/R 1,675,880 Bonds, Yellowstone Energy LP, Series 1993, 7.000%, 12/31/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 7,200 Total Montana 5,446,712 ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 3.4% (2.5% OF TOTAL INVESTMENTS) 6,485 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 9,857,132 System Revenue Bonds, Nebraska City 2, Series 2006A, 19.714%, 2/01/49 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 0.7% (0.5% OF TOTAL INVESTMENTS) 500 Clark County, Nevada, Industrial Development Revenue Bonds, 11/09 at 100.00 BB+ 488,930 Nevada Power Company, Series 1997A, 5.900%, 11/01/32 (Alternative Minimum Tax) 1,440 Clark County, Nevada, Local Improvement Bonds, Mountain's 8/16 at 100.00 N/R 1,363,565 Edge Special Improvement District 142, Series 2003, 6.375%, 8/01/23 1,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 Caa2 205,010 Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured 4,500 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 40,500 Revenue Bonds, Las Vegas Monorail Project, Second Tier, Series 2000, 7.375%, 1/01/40 (6) ------------------------------------------------------------------------------------------------------------------------------------ 7,440 Total Nevada 2,098,005 ------------------------------------------------------------------------------------------------------------------------------------
70 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.6% (1.9% OF TOTAL INVESTMENTS) $ 1,500 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB $ 1,450,260 Revenue Bonds, Series 2004, 5.750% 6/15/29 1,660 New Jersey Economic Development Authority, Special Facilities 3/10 at 101.00 B 1,427,368 Revenue Bonds, Continental Airlines Inc., Series 1999, 6.250%, 9/15/29 (Alternative Minimum Tax) 500 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 467,230 Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax) 600 New Jersey Educational Facilities Authority Revenue Refunding 6/19 at 100.00 Baa2 677,928 Bonds, University of Medicine and Dentistry of New Jersey Issue, Series 2009 B, 7.500%, 12/01/32 1,000 New Jersey Higher Education Assistance Authority, Student 6/18 at 100.00 AAA 1,047,830 Loan Revenue Bonds, Series 2008A, 6.125%, 6/01/30 - AGC Insured (Alternative Minimum Tax) 3,500 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 1,387,645 Transportation System Bonds, Series 2006C, 0.000%, 12/15/27 - NPFG Insured (7) 700 New Jersey Turnpike Authority, Revenue Bonds, Series 2009E, 1/19 at 100.00 A+ 733,684 5.250%, 1/01/40 500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 337,420 Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/41 ------------------------------------------------------------------------------------------------------------------------------------ 9,960 Total New Jersey 7,529,365 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 1.1% (0.9% OF TOTAL INVESTMENTS) 1,000 Metropolitan Transportation Authority, New York, Dedicated 11/19 at 100.00 AA 1,029,420 Tax Fund Bonds, Series 2009B, 5.000%, 11/15/34 1,700 New York City Industrial Development Agency, New York, 2/10 at 100.00 CCC+ 1,330,250 Special Facilities Revenue Bonds, American Airlines Inc., Series 1994, 6.900%, 8/01/24 (Alternative Minimum Tax) 1,000 Seneca Nation of Indians Capital Improvements Authority, New No Opt. Call BB 935,190 York, Special Obligation Bonds, Series 2007A, 5.250%, 12/01/16 ------------------------------------------------------------------------------------------------------------------------------------ 3,700 Total New York 3,294,860 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.6% (2.0% OF TOTAL INVESTMENTS) 1,260 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 1,123,996 Carolinas HealthCare System Revenue Bonds, Series 2008A, Trust 1149-3, 14.759%, 1/15/47 (IF) 5,500 North Carolina Capital Facilities Finance Agency, Solid Waste 7/12 at 106.00 N/R 4,903,030 Facilities Revenue Bonds, Liberty Tire Services of North Carolina LLC, Series 2004A, 6.750%, 7/01/29 960 North Carolina Capital Facilities Financing Agency, Revenue 10/16 at 100.00 AA+ 1,595,360 Bonds, Duke University, Series 2008, Tender Option Bonds Trust 3248, 25.843%, 10/01/44 (IF) ------------------------------------------------------------------------------------------------------------------------------------ 7,720 Total North Carolina 7,622,386 ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 5.1% (3.8% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: 320 5.125%, 6/01/24 6/17 at 100.00 BBB 285,011 375 5.750%, 6/01/34 6/17 at 100.00 BBB 315,356 10,855 5.875%, 6/01/47 6/17 at 100.00 BBB 8,042,687 3,125 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/14 at 102.00 N/R 2,301,844 Revenue Bonds, Bond Fund Program - Garfield Heights Project, Series 2004D, 5.250%, 5/15/23 1,000 Ohio, Environmental Facilities Revenue Bonds, Ford Motor 4/15 at 100.00 Caa1 607,610 Company, Series 2005, 5.750%, 4/01/35 (Alternative Minimum Tax) 4,000 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 3,048,040 Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 19,675 Total Ohio 14,600,548 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.1% (0.8% OF TOTAL INVESTMENTS) 970 Okeene Municipal Hospital and Schallmo Authority, Oklahoma, 1/16 at 101.00 N/R 835,733 Revenue Bonds, Series 2006, 7.000%, 1/01/35 2,500 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding No Opt. Call Caa2 2,388,325 Bonds, American Airlines Inc., Series 2004A, 7.750%, 6/01/35 (Mandatory put 12/01/14) ------------------------------------------------------------------------------------------------------------------------------------ 3,470 Total Oklahoma 3,224,058 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 71 NMZ | Nuveen Municipal High Income Opportunity Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.7% (2.0% OF TOTAL INVESTMENTS) $ 420 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB- $ 398,504 Bonds, Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16 985 Berks County Industrial Development Authority, Pennsylvania, 11/17 at 101.00 N/R 798,293 First Mortgage Revenue Bonds, One Douglassville Properties Project, Series 2007A, 6.125%, 11/01/34 (Alternative Minimum Tax) 2,000 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 1,507,260 Pennsylvania, Revenue Bonds, Immaculata University, Series 2005, 5.750%, 10/15/37 400 Chester County Industrial Development Authority, 12/17 at 100.00 BB+ 337,548 Pennsylvania, Avon Grove Charter School Revenue Bonds, Series 2007A, 6.375%, 12/15/37 750 New Morgan Industrial Development Authority, Pennsylvania, 4/10 at 100.00 BBB 750,038 Solid Waste Disposal Revenue Bonds, New Morgan Landfill Company Inc., Series 1994, 6.500%, 4/01/19 (Alternative Minimum Tax) 4,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB+ 3,981,200 Revenue Bonds, Amtrak 30th Street Station Parking Garage, Series 2002, 5.800%, 6/01/23 - ACA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 8,555 Total Pennsylvania 7,772,843 ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.8% (0.6% OF TOTAL INVESTMENTS) 3,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/26 at 100.00 A+ 2,211,990 Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/32 ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 1.9% (1.4% OF TOTAL INVESTMENTS) 1,000 Rhode Island Student Loan Authority, Student Loan Program 12/17 at 100.00 A 1,038,030 Revenue Bonds, Series 2008A, 6.750%, 12/01/28 (Alternative Minimum Tax) 4,835 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 4,394,483 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ 5,835 Total Rhode Island 5,432,513 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.6% (1.2% OF TOTAL INVESTMENTS) 4,000 Lancaster County, South Carolina, Assessment Bonds, Edgewater 11/17 at 100.00 N/R 3,438,680 II Improvement District, Series 2007A, 7.750%, 11/01/39 1,185 Richland County, South Carolina, Environmental Improvement 4/13 at 101.00 BBB 1,195,404 Revenue Refunding Bonds, International Paper Company, Series 2003A, 6.100%, 4/01/23 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 5,185 Total South Carolina 4,634,084 ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 4.9% (3.7% OF TOTAL INVESTMENTS) 3,500 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 A1 3,581,165 Tennessee, Hospital Revenue Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.500%, 4/15/31 1,000 Sullivan County Health Educational and Housing Facilities 3/13 at 100.00 N/R 859,930 Board, Tennessee, Revenue Bonds, Wellmont Health System, Refunding Series 200A, 5.440%, 9/01/32 2,000 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ 1,785,700 Board, Tennessee, Revenue Bonds, Wellmont Health System, Series 2006C, 5.250%, 9/01/26 Sumner County Health, Educational, and Housing Facilities Board, Tennessee, Revenue Refunding Bonds, Sumner Regional Health System Inc., Series 2007: 2,000 5.500%, 11/01/37 11/17 at 100.00 N/R 760,200 500 5.500%, 11/01/46 11/17 at 100.00 N/R 190,050 1,000 The Tennessee Energy Acquisition Corporation, Gas Revenue No Opt. Call BB+ 972,150 Bonds, Series 2006A, 5.250%, 9/01/23 5,601 The Tennessee Energy Acquisition Corporation, Gas Revenue No Opt. Call N/R 5,261,299 Bonds, Series 2006B, 5.625%, 9/01/26 980 Wilson County Health and Educational Facilities Board, 7/17 at 100.00 N/R 814,086 Tennessee, Senior Living Revenue Bonds, Rutland Place, Series 2007A, 6.300%, 7/01/37 ------------------------------------------------------------------------------------------------------------------------------------ 16,581 Total Tennessee 14,224,580 ------------------------------------------------------------------------------------------------------------------------------------
72 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 9.8% (7.3% OF TOTAL INVESTMENTS) $ 1,000 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ $ 597,650 Bonds, American Airlines Inc., Series 2007, 5.250%, 12/01/29 (Alternative Minimum Tax) 1,905 Austin Convention Enterprises Inc., Texas, Convention Center 1/11 at 100.00 N/R 1,704,289 Hotel Revenue Bonds, First Tier Series 2001C-1, 9.750%, 1/01/26 1,000 Austin Convention Enterprises Inc., Texas, Convention Center 1/17 at 100.00 BB 770,440 Hotel Revenue Bonds, First Tier Series 2006B, 5.750%, 1/01/34 10 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 9,016 Refunding Bonds, TXU Electric Company, Series 2001C, 5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax) 700 Brazos River Authority, Texas, Pollution Control Revenue 7/18 at 100.00 CCC 419,286 Refunding Bonds, TXU Electric Company, Series 2001D, 8.250%, 5/01/33 (Alternative Minimum Tax) 2,000 Clifton Higher Education Finance Corporation, Texas, No Opt. Call BBB- 2,298,300 Education Revenue Bonds, Tejano Center for Community Concerns, Inc.-Raul Yzaguirre School for Success, Refunding Series 2009A, 9.000%, 2/15/38 1,750 Dallas-Ft. Worth International Airport Facility Improvement 11/12 at 100.00 CCC+ 1,047,463 Corporation, Texas, Revenue Bonds, American Airlines Inc., Series 2007, 5.500%, 11/01/30 (Alternative Minimum Tax) Decatur Hospital Authority, Texas, Revenue Bonds, Wise Regional Health System, Series 2004A: 1,840 7.000%, 9/01/25 9/14 at 100.00 N/R 1,790,099 6,600 7.125%, 9/01/34 9/14 at 100.00 N/R 6,425,562 585 Gulf Coast Industrial Development Authority, Texas, Solid 4/12 at 100.00 Ba1 590,844 Waste Disposal Revenue Bonds, Citgo Petroleum Corporation Project, Series 1998, 8.000%, 4/01/28 (Alternative Minimum Tax) 1,000 Heart of Texas Education Finance Corporation, Texas, Gateway 8/16 at 100.00 N/R 813,180 Charter Academy, Series 2006A, 6.000%, 2/15/36 2,020 Houston, Texas, Airport System Special Facilities Revenue 7/11 at 100.00 B3 1,611,697 Bonds, Continental Air Lines Inc., Series 1998B, 5.700%, 7/15/29 (Alternative Minimum Tax) Houston, Texas, Airport System Special Facilities Revenue Bonds, Continental Air Lines Inc., Series 2001E: 600 7.375%, 7/01/22 (Alternative Minimum Tax) 7/11 at 101.00 B3 587,622 975 6.750%, 7/01/29 (Alternative Minimum Tax) 7/11 at 101.00 B3 888,196 1,000 La Vernia Education Financing Corporation, Texas, Charter 8/11 at 100.00 N/R 749,870 School Revenue Bonds, Riverwalk Education Foundation, Series 2007A, 5.450%, 8/15/36 1,035 North Texas Tollway Authority, System Revenue Bonds, Series 1/19 at 100.00 A2 1,085,663 2009, 6.250%, 1/01/39 Richardson Hospital Authority, Texas, Revenue Bonds, Richardson Regional Medical Center, Series 2004: 2,000 5.875%, 12/01/24 12/13 at 100.00 Baa2 1,857,240 1,000 6.000%, 12/01/34 12/13 at 100.00 Baa2 882,500 1,000 Sabine River Authority, Texas, Pollution Control Revenue 8/13 at 101.00 CCC 519,400 Refunding Bonds, TXU Energy Company LLC Project, Series 2003B, 6.150%, 8/01/22 2,960 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 2,676,491 Corporation, Texas, Revenue Bonds, Texas Health Resources Project, Trust 1031, 11.996%, 2/15/36 (IF) 1,000 Texas Public Finance Authority, Charter School Finance 2/15 at 100.00 N/R 771,520 Corporation Revenue Bonds, Cosmos Foundation Inc., Series 2007A, 5.375%, 2/15/37 340 Trinity River Authority of Texas, Pollution Control Revenue 5/13 at 101.00 CCC 160,704 Refunding Bonds, TXU Electric Company, Series 2003, 6.250%, 5/01/28 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 32,320 Total Texas 28,257,032 ------------------------------------------------------------------------------------------------------------------------------------ VIRGIN ISLANDS - 2.6% (1.9% OF TOTAL INVESTMENTS) 420 Virgin Islands Public Finance Authority, Matching Fund 10/19 at 100.00 BBB 442,974 Revenue Loan Note - Diageo Project, Series 2009A, 6.750%, 10/01/37 5,000 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 5,090,350 Refinery Project - Hovensa LLC, Series 2003, 6.125%, 7/01/22 (Alternative Minimum Tax) 2,000 Virgin Islands Public Finance Authority, Senior Secured Lien 7/14 at 100.00 BBB 2,019,700 Revenue Bonds, Refinery Project - Hovensa LLC, Series 2004, 5.875%, 7/01/22 ------------------------------------------------------------------------------------------------------------------------------------ 7,420 Total Virgin Islands 7,553,024 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 73 NMZ | Nuveen Municipal High Income Opportunity Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.3% (1.0% OF TOTAL INVESTMENTS) $ 1,000 Giles County Industrial Development Authority, Virginia, 11/09 at 100.00 B+ $ 983,770 Exempt Facility Revenue Bonds, Hoechst Celanese Project, Series 1996, 6.450%, 5/01/26 (WI/DD, Settling 11/02/09) 1,940 Isle of Wight County Industrial Development Authority, 3/17 at 100.00 BBB 1,560,827 Virginia, Environmental Improvement Revenue Bonds, International Paper Company Project, Series 2007A, 4.700%, 3/01/31 (Alternative Minimum Tax) 9,400 Metropolitan Washington DC Airports Authority, Virginia, No Opt. Call BBB+ 1,278,118 Dulles Toll Road Revenue Bonds, Series 2009B, 0.000%, 10/01/38 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,340 Total Virginia 3,822,715 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 4.3% (3.2% OF TOTAL INVESTMENTS) 3,000 Skagit County Public Hospital District 1, Washington, Revenue 12/13 at 100.00 Baa2 3,044,220 Bonds, Skagit Valley Hospital, Series 2003, 6.000%, 12/01/18 Vancouver Downtown Redevelopment Authority, Washington, Revenue Bonds, Conference Center Project, Series 2003A: 1,750 6.000%, 1/01/28 - ACA Insured 1/14 at 100.00 N/R 1,491,630 2,500 5.250%, 1/01/34 - ACA Insured 1/14 at 100.00 N/R 1,692,425 4,725 6.000%, 1/01/34 - ACA Insured 1/14 at 100.00 N/R 3,827,297 1,000 Washington State Economic Development Finance Authority, 12/17 at 100.00 N/R 645,540 Revenue Bonds, Coeur D'Alene Fiber Project, Series 2007G, 7.000%, 12/01/27 (Alternative Minimum Tax) 2,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 1,600,180 Bonds, Northwest Hospital and Medical Center of Seattle, Series 2007, 5.700%, 12/01/32 ------------------------------------------------------------------------------------------------------------------------------------ 14,975 Total Washington 12,301,292 ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.6% (0.5% OF TOTAL INVESTMENTS) 500 Ohio County Commission, West Virginia, Special District 3/16 at 100.00 N/R 394,350 Excise Tax Revenue Bonds, Fort Henry Economic Development, Series 2006B, 5.625%, 3/01/36 500 Ohio County Commission, West Virginia, Tax Increment Revenue No Opt. Call N/R 455,225 Bonds, Fort Henry Centre Financing District, Series 2007A, 5.850%, 6/01/34 1,000 West Virginia Hospital Finance Authority, Hospital Revenue 9/14 at 100.00 A2 998,750 Bonds, Charleston Area Medical Center, Series 2009A, 5.500%, 9/01/28 ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total West Virginia 1,848,325 ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 6.3% (4.7% OF TOTAL INVESTMENTS) 550 Lac Courte Oreilles Band of Lake Superior Chippewa Indians, 12/14 at 101.00 N/R (4) 706,337 Wisconsin, Revenue Bonds, Series 2003A, 7.750%, 6/01/16 (Pre-refunded 12/01/14) 2,300 Wisconsin Health and Educational Facilities Authority, 2/10 at 100.00 N/R 2,252,021 Revenue Bonds, Aurora Health Care Inc., Series 1999A, 5.600%, 2/15/29 - ACA Insured 2,500 Wisconsin Health and Educational Facilities Authority, 2/10 at 100.00 A 2,497,049 Revenue Bonds, Marshfield Clinic, Series 1997, 5.750%, 2/15/27 - NPFG Insured 1,000 Wisconsin Health and Educational Facilities Authority, 4/14 at 100.00 N/R 830,929 Revenue Bonds, Southwest Health Center Inc., Series 2004A, 6.250%, 4/01/34 1,000 Wisconsin Health and Educational Facilities Authority, 12/19 at 100.00 A1 1,013,099 Revenue Bonds, ThedaCare, Inc., Series 2009A, 5.500%, 12/15/38
74 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN (continued) Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan Healthcare System, Series 2006: $ 7,995 5.250%, 8/15/26 8/16 at 100.00 BBB+ $ 7,139,534 4,500 5.250%, 8/15/34 8/16 at 100.00 BBB+ 3,835,844 ------------------------------------------------------------------------------------------------------------------------------------ 19,845 Total Wisconsin 18,274,813 ------------------------------------------------------------------------------------------------------------------------------------ $ 453,525 Total Investments (cost $408,338,760) - 134.0% 387,195,132 ===============--------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (3.6)% (10,300,000) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.5% 7,068,237 ------------------------------------------------------------------------------------------------------------------ Preferred Shares, at Liquidation Value - (32.9)% (8) (95,000,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 288,963,369 ==================================================================================================================
Investments in Derivatives FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2009:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (9) DATE (DEPRECIATION) ----------------------------------------------------------------------------------------------------------------------------------- Barclays Bank PLC $15,000,000 Receive 3-Month USD-LIBOR 4.675% Semi-Annually 7/23/10 7/23/39 $(888,000) JPMorgan 5,000,000 Receive 3-Month USD-LIBOR 3.413 Semi-Annually 4/09/10 4/09/39 710,000 Royal Bank of Canada 3,000,000 Receive 3-Month USD-LIBOR 3.327 Semi-Annually 4/23/10 4/23/39 472,800 ----------------------------------------------------------------------------------------------------------------------------------- $ 294,800 ===================================================================================================================================
(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) The issuer has received a formal adverse determination from the Internal Revenue Service (the "IRS") regarding the tax-exempt status of the bonds' coupon payments. The Fund will continue to treat coupon payments as tax-exempt income until such time that it is formally determined that the interest on the bonds should be treated as taxable. (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) Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives. (8) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 24.5%. (9) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. 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. USD-LIBOR United States Dollar-London Inter-Bank Offered Rate. See accompanying notes to financial statements. Nuveen Investments 75 NMD | Nuveen Municipal High Income Opportunity Fund 2 | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.8% (1.5% OF TOTAL INVESTMENTS) $ 2,290 Birmingham Special Care Facilities Financing Authority, 11/15 at 100.00 Baa2 $ 2,206,346 Alabama, Revenue Bonds, Baptist Health System Inc., Series 2005A, 5.250%, 11/15/20 1,000 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 842,310 Environmental Improvement Revenue Bonds, MeadWestvaco Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 3,290 Total Alabama 3,048,656 ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 5.0% (4.4% OF TOTAL INVESTMENTS) 1,000 Estrella Mountain Ranch Community Facilities District, 7/17 at 100.00 N/R 908,490 Goodyear, Arizona, General Obligation Bonds, Series 2007, 6.200%, 7/15/32 2,575 Quechan Indian Tribe of the Fort Yuma Reservation, Arizona, 12/17 at 102.00 N/R 2,021,684 Government Project Bonds, Series 2007, 7.000%, 12/01/27 5,325 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 4,554,739 Bonds, Series 2007, 5.000%, 12/01/37 500 The Industrial Development Authority of the County of Pima No Opt. Call N/R 525,795 Education Revenue Bonds, Arizona, Legacy Traditional School Project, Series 2009, 8.500%, 7/01/39 1,000 Yuma County Industrial Development Authority, Arizona, Exempt 12/17 at 100.00 N/R 780,460 Revenue Bonds, Far West Water & Sewer Inc. Refunding, Series 2007A, 6.375%, 12/01/37 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 10,400 Total Arizona 8,791,168 ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.1% (0.1% OF TOTAL INVESTMENTS) 125 Little River County, Arkansas, Revenue Refunding Bonds, 4/10 at 100.00 B2 110,841 Georgia-Pacific Corporation, Series 1998, 5.600%, 10/01/26 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 13.2% (11.4% OF TOTAL INVESTMENTS) 2,000 California Educational Facilities Authority, Revenue Bonds, 12/16 at 100.00 Baa3 1,581,740 Dominican University, Series 2006, 5.000%, 12/01/36 1,020 California Housing Finance Agency, California, Home Mortgage 8/17 at 100.00 AA- 924,497 Revenue Bonds, Series 2008B, 5.000%, 2/01/28 (Alternative Minimum Tax) 1,825 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 1,605,653 Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/35 2,000 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 2,069,200 Bonds, St. Joseph Health System, Series 2007C, 5.750%, 7/01/47 - FGIC Insured 1,350 California Statewide Community Development Authority, Revenue 11/16 at 100.00 Aa3 1,149,930 Bonds, Sutter Health, Tender Option Bond Trust 3048, 13.180%, 11/15/46 (IF) 3,150 California Statewide Community Development Authority, Revenue 11/16 at 100.00 Aa3 2,683,170 Bonds, Sutter Health, Tender Option Bond Trust 3102, 15.445%, 11/15/46 (IF) Daly City Housing Development Finance Agency, California, Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park Refunding, Series 2007A: 2,000 5.000%, 12/15/37 12/17 at 100.00 A- 1,693,940 1,990 6.500%, 12/15/47 12/17 at 100.00 N/R 1,665,710 1,370 Elk Grove Community Facilities District 2005-1, California, 9/15 at 102.00 N/R 827,905 Special Tax Bonds, Series 2007, 5.250%, 9/01/37 Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: 4,000 5.750%, 6/01/47 6/17 at 100.00 BBB 2,955,520 2,500 5.125%, 6/01/47 6/17 at 100.00 BBB 1,660,975 1,000 Lathrop Financing Authority, California, Revenue Bonds, Water 6/13 at 100.00 N/R 889,210 Supply Project Series 2003, 6.000%, 6/01/35
76 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 500 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B- $ 478,690 California, Sublease Revenue Bonds, Los Angeles International Airport, American Airlines Inc. Terminal 4 Project, Series 2002C, 7.500%, 12/01/24 (Alternative Minimum Tax) 2,500 San Bernardino Community College District, California, 8/16 at 100.00 AAA 2,776,000 General Obligation Bonds, Tender Option Bond Trust 11780-1, 17.501%, 8/01/31 - FSA Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 27,205 Total California 22,962,140 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 6.7% (5.8% OF TOTAL INVESTMENTS) 1,500 Arista Metropolitan District, Colorado, Special Revenue 12/15 at 100.00 N/R 1,341,030 Bonds, Series 2008, 9.250%, 12/01/37 1,520 Colorado Educational and Cultural Facilities Authority, 5/17 at 100.00 BB+ 1,173,212 Charter School Revenue Bonds, Windsor Academy, Series 2007A, 5.700%, 5/01/37 2,000 Colorado Educational and Cultural Facilities Authority, 6/18 at 102.00 N/R 1,744,980 Revenue Bonds, Pikes Peak School of Expeditionary Learning Charter School, Series 2008, 6.625%, 6/01/38 1,480 Colorado Health Facilities Authority, Colorado, Revenue 9/16 at 100.00 AA 1,398,940 Bonds, Catholic Health Initiatives, Series 2006A, 5.000%, 9/01/41 5,045 Colorado Housing and Finance Authority, Revenue Bonds, 4/17 at 100.00 N/R 3,236,216 Confluence Energy LLC Project, Series 2007, 6.750%, 4/01/27 (Alternative Minimum Tax) 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 1,700 Public Authority for Colorado Energy, Natural Gas Revenue No Opt. Call A 1,789,556 Bonds, Colorado Springs Utilities, Series 2008, 6.500%, 11/15/38 ------------------------------------------------------------------------------------------------------------------------------------ 14,245 Total Colorado 11,665,254 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 16.0% (13.8% OF TOTAL INVESTMENTS) 1,000 Bartram Park Community Development District, Florida, Special 5/15 at 101.00 N/R 745,930 Assessment Bonds, Series 2005, 5.300%, 5/01/35 1,000 Beeline Community Development District, Palm Beach County, 5/18 at 100.00 N/R 951,020 Florida, Special Assessment Bonds, Series 2008A, 7.000%, 5/01/37 1,000 Colonial Country Club Community Development District, 5/13 at 101.00 A+ 1,024,270 Florida, Capital Improvement Revenue Bonds, Series 2003, 6.400%, 5/01/33 2,000 Escambia County, Florida, Environmental Improvement Revenue 8/11 at 100.00 BBB 1,767,120 Bonds, International Paper Company Projects, Series 2006B, 5.000%, 8/01/26 (Alternative Minimum Tax) 1,320 Fishhawk Community Development District II, Florida, Special 5/14 at 100.00 N/R 1,133,537 Assessment Revenue Bonds, Series 2004A, 6.125%, 5/01/34 2,000 Habitat Community Development District, Florida, Capital No Opt. Call N/R 1,569,020 Improvement Revenue Bonds, Series 2004, 5.850%, 5/01/35 1,000 Martin County Industrial Development Authority, Florida, 12/09 at 100.00 BB+ 1,000,250 Industrial Development Revenue Bonds, Indiantown Cogeneration LP, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax) 2,915 Old Palm Community Development District, Florida, Special 5/15 at 101.00 N/R 2,130,049 Assessment Bonds, Palm Beach Gardens, Series 2004A, 5.900%, 5/01/35 1,500 Palm Glades Community Development District, Florida, Special 5/18 at 100.00 N/R 1,090,830 Assessment Bond, Series 2008A, 7.125%, 5/01/39 1,180 Pine Island Community Development District, Florida, Special 5/12 at 101.00 N/R 752,403 Assessment Bonds, Bella Collina, Series 2004, 5.750%, 5/01/35 995 Poinciana West Community Development District, Florida, 5/17 at 100.00 N/R 788,717 Special Assessment Bonds, Series 2007, 6.000%, 5/01/37 970 Reunion West Community Development District, Florida, Special 5/12 at 101.00 N/R 427,062 Assessment Bonds, Series 2004, 6.250%, 5/01/36 3,800 South Miami Health Facilities Authority, Florida, Revenue 8/17 at 100.00 AA- 3,241,476 Bonds, Baptist Health Systems of South Florida, Trust 1030, 13.222%, 8/15/37 (IF)
Nuveen Investments 77 NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 6,000 Split Pine Community Development District, Florida, Special 5/17 at 100.00 N/R $ 3,649,380 Assessment Bonds, Series 2007A, 5.250%, 5/01/39 4,345 Stoneybrook Venice Community Development District, Florida, 5/18 at 100.00 N/R 3,944,956 Capital Improvement Revenue Bonds, Series 2007, 6.750%, 5/01/38 3,450 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 2,219,420 Assessment Bonds, Series 2006, 5.400%, 5/01/37 2,000 Westchester Community Development District 1, Florida, 5/13 at 101.00 N/R 1,397,480 Special Assessment Bonds, Series 2003, 6.125%, 5/01/35 ------------------------------------------------------------------------------------------------------------------------------------ 36,475 Total Florida 27,832,920 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.8% (0.7% OF TOTAL INVESTMENTS) 845 Effingham County Development Authority, Georgia, Solid Waste 7/10 at 100.00 BB- 782,757 Disposal Revenue Bonds, Ft. James Project, Series 1998, 5.625%, 7/01/18 (Alternative Minimum Tax) (4) 1,000 Fulton County Residential Care Facilities Authority, Georgia, 7/17 at 100.00 N/R 651,480 Revenue Bonds, Elderly Care, Lenbrook Square Project, Series 2006A, 5.125%, 7/01/42 ------------------------------------------------------------------------------------------------------------------------------------ 1,845 Total Georgia 1,434,237 ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 10.1% (8.7% OF TOTAL INVESTMENTS) 1,100 Hillside, Cook County, Illinois, Senior Lien Tax Increment 1/18 at 102.00 N/R 951,203 Revenue Bonds, Mannheim Redevelopment Project, Series 2008, 7.000%, 1/01/28 5,620 Illinois Finance Authority, Charter School Revenue Bonds, No Opt. Call BBB 4,701,523 Chicago Charter School Foundation, Series 2007, 5.000%, 12/01/36 1,900 Illinois Finance Authority, Revenue Bonds, Provena Health, 8/19 at 100.00 BBB+ 2,137,272 Series 2009A, 7.750%, 8/15/34 1,500 Illinois Finance Authority, Revenue Bonds, Roosevelt 4/17 at 100.00 Baa2 1,418,880 University, Series 2007, 5.500%, 4/01/37 2,000 Illinois Finance Authority, Revenue Bonds, Silver Cross 8/19 at 100.00 BBB 2,102,220 Hospital and Medical Centers, Series 2009, 6.875%, 8/15/38 2,000 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 B+ 1,305,320 Conference Center and Hotel Revenue Bonds, Series 2005A-2, 5.500%, 1/01/36 - ACA Insured Southwestern Illinois Development Authority, Illinois, Saint Clair County Comprehensive Mental Health Center, Series 2007: 1,295 6.200%, 6/01/17 No Opt. Call N/R 1,244,262 3,020 6.625%, 6/01/37 6/17 at 103.00 N/R 2,698,581 1,000 Southwestern Illinois Development Authority, Local Government 3/14 at 100.00 N/R 995,530 Program Revenue Bonds, Granite City Project, Series 2009B, 7.750%, 3/01/22 ------------------------------------------------------------------------------------------------------------------------------------ 19,435 Total Illinois 17,554,791 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.2% (2.8% OF TOTAL INVESTMENTS) 3,000 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 2,477,760 Revenue Bonds, Cardinal Health System, Series 2006, 5.125%, 8/01/29 1,600 Indiana Bond Bank, Special Program Gas Revenue Bonds, JP No Opt. Call Aa3 1,686,512 Morgan Ventures Energy Corporation Guaranteed, Series 2007A, 15.229%, 10/15/20 (IF) Vigo County, Indiana, Hospital Authority, Union Hospital, Revenue Bonds, Series 2007: 250 5.700%, 9/01/37 9/17 at 100.00 N/R 196,498 1,625 5.800%, 9/01/47 9/17 at 100.00 N/R 1,254,776 ------------------------------------------------------------------------------------------------------------------------------------ 6,475 Total Indiana 5,615,546 ------------------------------------------------------------------------------------------------------------------------------------
78 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 4.2% (3.6% OF TOTAL INVESTMENTS) $ 3,500 Louisiana Local Government Environmental Facilities & 11/17 at 100.00 BB $ 3,377,465 Community Development Authority, Revenue Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32 4,000 Louisiana Local Government Environmental Facilities and 12/17 at 100.00 N/R 2,961,480 Community Development Authority, Revenue Bonds, Southgate Suites Hotel LLC Project, Series 2007A, 6.750%, 12/15/37 1,000 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 905,050 Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 ------------------------------------------------------------------------------------------------------------------------------------ 8,500 Total Louisiana 7,243,995 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.0% (0.0% OF TOTAL INVESTMENTS) 90 Boston Industrial Development Financing Authority, 9/12 at 102.00 Caa1 58,284 Massachusetts, Senior Revenue Bonds, Crosstown Center Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.3% (1.2% OF TOTAL INVESTMENTS) 1,000 Garden City Hospital Finance Authority, Michigan, Revenue 8/17 at 100.00 N/R 644,330 Bonds, Garden City Hospital Obligated Group, Series 2007A, 4.875%, 8/15/27 1,750 Michigan Public Educational Facilities Authority, Charter 12/17 at 100.00 N/R 1,407,385 School Revenue Bonds, American Montessori Academy, Series 2007, 6.500%, 12/01/37 20 Michigan State Hospital Finance Authority, Hospital Revenue 2/10 at 100.00 Ba3 16,715 Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/23 325 Michigan State Hospital Finance Authority, Hospital Revenue 2/10 at 100.00 BB- 255,109 Refunding Bonds, Detroit Medical Center Obligated Group, Series 1997A, 5.250%, 8/15/27 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,095 Total Michigan 2,323,539 ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.5% (1.3% OF TOTAL INVESTMENTS) 3,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 BB+ 2,675,460 Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/35 ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 2.6% (2.2% OF TOTAL INVESTMENTS) 1,000 Hanley Road Corridor Transportation Development District, 10/19 at 100.00 A- 1,010,800 Brentwood and Maplewood, Missouri, Transportation Sales Revenue Bonds, Series 2009, 5.875%, 10/01/36 1,000 Missouri Development Finance Board. Infrastructure Facilities 4/14 at 100.00 A+ 1,018,820 Revenue Bonds, City of Independence, Missouri - Events Center Project, Series 2009F, 6.250%, 4/01/38 40 Saint Louis Industrial Development Authority, Missouri, Saint 12/10 at 102.00 Ca 14,036 Louis Convention Center Headquarters Hotel Project, Series 2000A, 7.000%, 12/15/15 (Alternative Minimum Tax) (5) 1,000 Saint Louis, Missouri, Orpheum Theater Community Improvement No Opt. Call N/R 995,250 District, Property and Sales Tax Revenue Bonds, Series 2009, 9.000%, 3/01/29 1,953 Saint Louis, Missouri, Tax Increment Financing Revenue Bonds, 3/10 at 100.00 N/R 1,442,154 Fashion Square Redevelopment Project, Series 2008A, 6.300%, 8/22/26 ------------------------------------------------------------------------------------------------------------------------------------ 4,993 Total Missouri 4,481,060 ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.3% (0.3% OF TOTAL INVESTMENTS) 715 Montana Board of Investments, Resource Recovery Revenue No Opt. Call N/R 599,127 Bonds, Yellowstone Energy LP, Series 1993, 7.000%, 12/31/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 1.4% (1.3% OF TOTAL INVESTMENTS) 55 Clark County, Nevada, Industrial Development Revenue Bonds, 1/10 at 100.00 BB+ 52,207 Nevada Power Company, Series 1995A, 5.600%, 10/01/30 (Alternative Minimum Tax) Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: 1,200 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 Caa2 246,012 1,200 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 Caa2 246,012 Sparks Tourism Improvement District 1, Legends at Sparks Marina, Nevada, Senior Sales Tax Revenue Bonds Series 2008A: 1,000 6.500%, 6/15/20 6/18 at 100.00 Ba2 1,005,140 1,000 6.750%, 6/15/28 6/18 at 100.00 Ba2 970,050 ------------------------------------------------------------------------------------------------------------------------------------ 4,455 Total Nevada 2,519,421 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 79 NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.5% (0.5% OF TOTAL INVESTMENTS) $ 1,000 New Hampshire Business Finance Authority, Solid Waste 5/16 at 101.00 BBB $ 951,450 Disposal Revenue Bonds, Waste Management Inc. Project, Series 2002, 5.200%, 5/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 4.5% (3.9% OF TOTAL INVESTMENTS) New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental Airlines Inc., Series 1999: 3,000 6.250%, 9/15/19 (Alternative Minimum Tax) 9/11 at 100.00 B 2,716,110 55 6.400%, 9/15/23 (Alternative Minimum Tax) 3/10 at 101.00 B 49,265 240 6.250%, 9/15/29 (Alternative Minimum Tax) 3/10 at 101.00 B 206,366 25 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 23,362 Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax) 3,200 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 3,121,856 Jersey, Revenue Bonds, Saint Peters University Hospital, Series 2007, 5.750%, 7/01/37 1,000 New Jersey Health Care Facilities Financing Authority, No Opt. Call BBB- 1,025,010 Revenue Bonds, Saint Joseph's Healthcare System Obligated Group Issue, Series 2008, 6.000%, 7/01/18 700 New Jersey Turnpike Authority, Revenue Bonds, Series 2009E, 1/19 at 100.00 A+ 733,684 5.250%, 1/01/40 ------------------------------------------------------------------------------------------------------------------------------------ 8,220 Total New Jersey 7,875,653 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.2% (0.2% OF TOTAL INVESTMENTS) 500 Montecito Estates Public Improvement District, New Mexico, 10/17 at 100.00 N/R 368,070 Special Levee Revenue Bonds, Series 2007, 7.000%, 10/01/37 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 1.4% (1.2% OF TOTAL INVESTMENTS) 1,000 New York City Industrial Development Agency, New York, 8/18 at 100.00 B- 966,560 American Airlines-JFK International Airport Special Facility Revenue Bonds, Series 2005, 7.625%, 8/01/25 (Mandatory put 8/01/16) (Alternative Minimum Tax) 1,030 New York City Industrial Development Agency, New York, Civic 7/16 at 101.00 N/R 896,852 Facility Revenue Bonds, Special Needs Facilities Pooled Program, Series 2008A-1, 5.800%, 7/01/23 700 Seneca Nation of Indians Capital Improvements Authority, New No Opt. Call BB 654,633 York, Special Obligation Bonds, Series 2007A, 5.250%, 12/01/16 ------------------------------------------------------------------------------------------------------------------------------------ 2,730 Total New York 2,518,045 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 3.1% (2.6% OF TOTAL INVESTMENTS) 1,970 Albemarle Hospital Authority, North Carolina, Health Care 10/17 at 100.00 N/R 1,478,682 Facilities Revenue Bonds, Series 2007, 5.250%, 10/01/38 1,260 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 1,123,996 Carolinas HealthCare System Revenue Bonds, Series 2008, Trust 1149-3, 13.204%, 1/15/47 (IF) North Carolina Capital Facilities Financing Agency, Educational Facilities Revenue Bond, Meredith College, Series 2008A: 1,740 6.000%, 6/01/31 6/18 at 100.00 BBB 1,746,142 1,000 6.125%, 6/01/35 6/18 at 100.00 BBB 995,450 ------------------------------------------------------------------------------------------------------------------------------------ 5,970 Total North Carolina 5,344,270 ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 2.9% (2.5% OF TOTAL INVESTMENTS) 4,845 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB 3,589,757 Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2, 5.875%, 6/01/47 2,000 Western Reserve Port Authority, Ohio, Solid Waste Facility 7/17 at 102.00 N/R 1,524,020 Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 6,845 Total Ohio 5,113,777 ------------------------------------------------------------------------------------------------------------------------------------
80 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.4% (0.3% OF TOTAL INVESTMENTS) $ 165 Oklahoma Development Finance Authority, Revenue Bonds, Saint 2/17 at 100.00 A $ 155,673 John Health System, Series 2007, 5.000%, 2/15/42 45 Tulsa Municipal Airport Trust, Oklahoma, Revenue Bonds, 12/09 at 100.00 B- 38,327 American Airlines Inc., Series 1995, 6.250%, 6/01/20 500 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding No Opt. Call Caa2 477,665 Bonds, American Airlines Inc., Series 2004A, 7.750%, 6/01/35 (Mandatory put 12/01/14) ------------------------------------------------------------------------------------------------------------------------------------ 710 Total Oklahoma 671,665 ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.1% (0.1% OF TOTAL INVESTMENTS) 25 Oregon, Economic Development Revenue Bonds, Georgia Pacific 2/10 at 100.00 BB- 24,236 Corp., Series 1995CLVII, 6.350%, 8/01/25 (Alternative Minimum Tax) (4) 125 Oregon, Economic Development Revenue Refunding Bonds, Georgia 12/09 at 100.00 B2 112,118 Pacific Corp., Series 1997-183, 5.700%, 12/01/25 ------------------------------------------------------------------------------------------------------------------------------------ 150 Total Oregon 136,354 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 1.8% (1.5% OF TOTAL INVESTMENTS) 1,010 Chester County Industrial Development Authority, 12/17 at 100.00 BB+ 852,309 Pennsylvania, Avon Grove Charter School Revenue Bonds, Series 2007A, 6.375%, 12/15/37 1,450 Lancaster County Hospital Authority, Pennsylvania, Revenue 7/17 at 100.00 N/R 1,303,666 Bonds, Brethren Village Project, Series 2008A, 6.500%, 7/01/40 1,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/19 at 100.00 AA+ 966,460 Revenue Bonds, Tender Option Bond Trust 4657, 15.852%, 10/01/29 (IF) ------------------------------------------------------------------------------------------------------------------------------------ 3,460 Total Pennsylvania 3,122,435 ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.0% (0.0% OF TOTAL INVESTMENTS) 20 Puerto Rico Ports Authority, Special Facilities Revenue 12/09 at 100.00 CCC+ 14,624 Bonds, American Airlines Inc., Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 0.3% (0.2% OF TOTAL INVESTMENTS) 500 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 454,445 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 2.5% (2.2% OF TOTAL INVESTMENTS) 1,100 Georgetown County, South Carolina, Environmental Improvement 8/11 at 100.00 BBB 933,306 Revenue Bonds, International Paper Company, Series 2006A, 5.000%, 8/01/30 (Alternative Minimum Tax) 3,477 Lancaster County, South Carolina, Special Assessment Bonds, No Opt. Call N/R 3,434,302 Edgewater II Improvement District, Series 2007B, 7.700%, 11/01/17 ------------------------------------------------------------------------------------------------------------------------------------ 4,577 Total South Carolina 4,367,608 ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 3.0% (2.6% OF TOTAL INVESTMENTS) 2,000 Sullivan County Health Educational and Housing Facilities 3/13 at 100.00 N/R 1,719,860 Board, Tennessee, Revenue Bonds, Wellmont Health System, Refunding Series 200A, 5.440%, 9/01/32 Sumner County Health, Educational, and Housing Facilities Board, Tennessee, Revenue Refunding Bonds, Sumner Regional Health System Inc., Series 2007: 1,500 5.500%, 11/01/37 11/17 at 100.00 N/R 570,150 1,000 5.500%, 11/01/46 11/17 at 100.00 N/R 380,100 2,761 The Tennessee Energy Acquisition Corporation, Gas Revenue No Opt. Call N/R 2,593,545 Bonds, Series 2006B, 5.625%, 9/01/26 ------------------------------------------------------------------------------------------------------------------------------------ 7,261 Total Tennessee 5,263,655 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 81 NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 12.0% (10.3% OF TOTAL INVESTMENTS) Alliance Airport Authority, Texas, Special Facilities Revenue Bonds, American Airlines Inc., Series 2007: $ 1,000 5.250%, 12/01/29 (Alternative Minimum Tax) 12/12 at 100.00 CCC+ $ 597,650 1,000 5.750%, 12/01/29 (Alternative Minimum Tax) 12/10 at 100.00 CCC+ 640,900 440 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 396,717 Refunding Bonds, TXU Electric Company, Series 2001C, 5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative Minimum Tax) 2,100 Clifton Higher Education Finance Corporation, Texas, No Opt. Call BBB- 2,411,934 Education Revenue Bonds, Tejano Center for Community Concerns, Inc.-Raul Yzaguirre School for Success, Refunding Series 2009A, 8.750%, 2/15/28 3,000 Danbury Higher Education Authority Inc., Texas, Golden Rule 2/18 at 100.00 BB+ 2,585,130 Charter School Revenue Bonds, Series 2008A, 6.500%, 8/15/38 995 Hidalgo Willacy Housing Finance Corporation, Texas, 1/14 at 102.00 N/R 930,713 Multifamily Housing Revenue Bonds, Heritage Square Apartments Project, Series 2003A, 7.000%, 1/01/39 1,330 La Vernia Higher Education Financing Corporation, Texas, 2/16 at 100.00 N/R 1,103,408 Education Revenue Bonds, Amigos Por Vida Friends For Life Public Charter School, Series 2008, 6.375%, 2/15/37 335 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 338,886 Refunding Bonds, Series 2008, 5.750%, 1/01/38 110 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 99,179 Bonds, TXU Energy Company LLC Project, Series 2001B, 5.750%, 5/01/30 (Mandatory put 11/01/11) (Alternative Minimum Tax) 385 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 347,128 Refunding Bonds, TXU Electric Company, Series 2001A, 5.500%, 5/01/22 (Mandatory put 11/01/11) 3,000 Sabine River Authority, Texas, Pollution Control Revenue 8/13 at 101.00 CCC 1,558,200 Refunding Bonds, TXU Energy Company LLC Project, Series 2003B, 6.150%, 8/01/22 4,255 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 3,847,456 Corporation, Texas, Revenue Bonds, Texas Health Resources Project, Trust 1031, 12.000%, 2/15/36 (IF) 500 Texas Municipal Gas Acquisition and Supply Corporation I, Gas No Opt. Call A 520,970 Supply Revenue Bonds, Senior Lien Series 2008D, 6.250%, 12/15/26 1,000 Texas Public Finance Authority, Charter School Revenue Bonds, 12/14 at 100.00 BB 913,400 School of Excellence Charter School, Series 2004A, 7.000%, 12/01/34 5,000 Texas Turnpike Authority, First Tier Revenue Bonds, Central 8/12 at 100.00 BBB+ 4,558,400 Texas Turnpike System, Series 2002A, 5.000%, 8/15/42 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 24,450 Total Texas 20,850,071 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 3.7% (3.2% OF TOTAL INVESTMENTS) Utah State Charter School Finance Authority, Noah Webster Academy Revenue Bonds, Series: 500 6.250%, 6/15/28 6/17 at 100.00 N/R 437,760 1,430 6.500%, 6/15/38 6/17 at 100.00 N/R 1,226,797 5,550 Utah State Charter School Finance Authority, Revenue Bonds, 12/17 at 100.00 BBB- 4,779,383 Summit Academy Project, Series 2007A, 5.800%, 6/15/38 ------------------------------------------------------------------------------------------------------------------------------------ 7,480 Total Utah 6,443,940 ------------------------------------------------------------------------------------------------------------------------------------ VIRGIN ISLANDS - 1.2% (1.0% OF TOTAL INVESTMENTS) 1,000 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 1,018,070 Refinery Project - Hovensa LLC, Series 2003, 6.125%, 7/01/22 (Alternative Minimum Tax) 1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 1,016,430 Refinery Facilities - Hovensa LLC Coker, Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Virgin Islands 2,034,500 ------------------------------------------------------------------------------------------------------------------------------------
82 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.6% (0.5% OF TOTAL INVESTMENTS) $ 50 Goochland County Industrial Development Authority, Virginia, 12/09 at 100.50 B2 $ 44,605 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (4) 1,000 Virginia Small Business Financing Authority Revenue Bonds 7/14 at 102.00 N/R 1,034,070 (Hampton Roads Proton Beam Therapy Institute at Hampton University, LLC Project), Series 2009, 9.000%, 7/01/39 ------------------------------------------------------------------------------------------------------------------------------------ 1,050 Total Virginia 1,078,675 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 6.6% (5.7% OF TOTAL INVESTMENTS) 2,415 FYI Properties, Washington, Lease Revenue Bonds, Washington 6/19 at 100.00 AA 2,959,727 State Department of Information Services Project, Tender Option Bond Trust 2009-14A&B, 19.210%, 6/01/34 (IF) 3,500 Kalispel Indian Tribe, Washington, Priority Distribution No Opt. Call N/R 2,916,865 Bonds, Series 2008, 6.750%, 1/01/38 7,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 5,600,630 Bonds, Northwest Hospital and Medical Center of Seattle, Series 2007, 5.700%, 12/01/32 ------------------------------------------------------------------------------------------------------------------------------------ 12,915 Total Washington 11,477,222 ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.3% (0.3% OF TOTAL INVESTMENTS) 740 Ohio County Commission, West Virginia, Special District 3/16 at 100.00 N/R 583,638 Excise Tax Revenue Bonds, Fort Henry Economic Development, Series 2006B, 5.625%, 3/01/36 ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.4% (1.2% OF TOTAL INVESTMENTS) 30 Green Bay Redevelopment Authority, Wisconsin, Industrial No Opt. Call N/R 27,588 Development Revenue Bonds, Fort James Project, Series 1999, 5.600%, 5/01/19 (Alternative Minimum Tax) 360 Nekoosa, Wisconsin, Pollution Control Revenue Bonds, Nekoosa No Opt. Call B2 345,088 Paper Inc. Project, Series 1999B, 5.500%, 7/01/15 1,000 Wisconsin Health and Educational Facilities Authority, 2/12 at 101.00 A+ 872,199 Revenue Bonds, Ministry Healthcare Inc., Tender option Bond Trust 3114, 15.795%, 2/15/32 - NPFG Insured (IF) 500 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 BBB+ 204,870 Revenue Bonds, Wheaton Franciscan Health, Trust 2113, 14.394%, 8/15/34 (IF) 2,250 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 BBB+ 921,915 Revenue Bonds, Wheaton Franciscan Healthcare System, Series 2006, Trust 2187, 14.394%, 8/15/34 (IF) ------------------------------------------------------------------------------------------------------------------------------------ 4,140 Total Wisconsin 2,371,660 ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 1.1% (0.9% OF TOTAL INVESTMENTS) 2,000 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB+ 1,880,060 Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ $ 241,061 Total Investments (cost $220,384,592) - 115.8% 201,838,256 ===============--------------------------------------------------------------------------------------------------------------------- Borrowings - (20.1)% (6) (35,000,000) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 4.3% 7,514,442 ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 174,352,698 ==================================================================================================================
Nuveen Investments 83 NMD | Nuveen Municipal High Income Opportunity Fund 2 (continued) | Portfolio of Investments October 31, 2009 Investments in Derivatives FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2009:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (7) DATE (DEPRECIATION) ---------------------------------------------------------------------------------------------------------------------------------- JPMorgan $ 6,000,000 Receive 3-Month USD-LIBOR 3.413% Semi-Annually 4/09/10 4/09/39 $ 852,000 Royal Bank of Canada 3,000,000 Receive 3-Month USD-LIBOR 3.327 Semi-Annually 4/23/10 4/23/39 472,800 ---------------------------------------------------------------------------------------------------------------------------------- $ 1,324,800 ==================================================================================================================================
FUTURES CONTRACTS AT OCTOBER 31, 2009:
VALUE AT UNREALIZED CONTRACT NUMBER OF CONTRACT OCTOBER 31, APPRECIATION TYPE POSITION CONTRACTS EXPIRATION 2009 (DEPRECIATION) ------------------------------------------------------------------------------------------------------- U.S. Treasury 30-Year Bond Short (87) 12/09 $(10,453,594) $ (81,784) =======================================================================================================
(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) The issuer has received a formal adverse determination from the Internal Revenue Service (the "IRS") regarding the tax-exempt status of the bonds' coupon payments. The Fund will continue to treat coupon payments as tax-exempt income until such time that it is formally determined that the interest on the bonds should be treated as taxable. (5) 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. (6) Borrowings as a percentage of Total Investments is 17.3%. (7) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. (IF) Inverse floating rate investment. USD-LIBOR United States Dollar-London Inter-Bank Offered Rate. See accompanying notes to financial statements. 84 Nuveen Investments | Statement of | Assets & Liabilities October 31, 2009
INVESTMENT SELECT QUALITY QUALITY QUALITY INCOME (NQM) (NQS) (NQU) ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $789,781,632, $729,435,281 and $1,178,627,349, respectively) $ 798,173,885 $ 730,919,102 $ 1,206,346,732 Cash 7,678,117 -- -- Deposits with brokers for open futures contracts -- -- -- Unrealized appreciation on forward swaps -- -- -- Receivables: Interest 12,786,477 11,885,496 19,220,963 Investments sold 3,535,220 19,314,750 7,564,939 Other assets 163,355 161,605 238,945 ----------------------------------------------------------------------------------------------------------------------------------- Total assets 822,337,054 762,280,953 1,233,371,579 ----------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Borrowings -- -- -- Cash overdraft -- 4,847,800 326,520 Floating rate obligations 93,377,000 18,540,000 66,620,000 Unrealized depreciation on forward swaps -- -- -- Payables: Investments purchased 4,148,078 3,422,577 -- Common share dividends 2,203,429 2,265,723 3,504,258 Preferred share dividends 10,028 12,186 17,027 Variation margin on futures contracts -- -- -- Accrued expenses: Interest on borrowings -- -- -- Management fees 431,008 400,852 635,640 Shelf offering costs -- -- -- Other 557,291 283,505 411,198 ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 100,726,834 29,772,643 71,514,643 ----------------------------------------------------------------------------------------------------------------------------------- Preferred shares, at liquidation value 210,700,000 251,275,000 386,875,000 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 510,910,220 $ 481,233,310 $ 774,981,936 =================================================================================================================================== Common shares outstanding 35,820,767 34,028,031 54,219,374 =================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.26 $ 14.14 $ 14.29 =================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: =================================================================================================================================== Common shares, $.01 par value per share $ 358,208 $ 340,280 $ 542,194 Paid-in surplus 500,074,515 474,068,165 755,208,196 Undistributed (Over-distribution of) net investment income 5,658,233 5,785,986 9,681,121 Accumulated net realized gain (loss) from investments and derivative transactions (3,572,989) (444,942) (18,168,958) Net unrealized appreciation (depreciation) of investments and derivative transactions 8,392,253 1,483,821 27,719,383 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 510,910,220 $ 481,233,310 $ 774,981,936 =================================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 200,000,000 Preferred 1,000,000 1,000,000 1,000,000 ===================================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 85 | Statement of | Assets & Liabilities (continued) October 31, 2009
PREMIER HIGH INCOME HIGH INCOME INCOME OPPORTUNITY OPPORTUNITY 2 (NPF) (NMZ) (NMD) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $443,998,590, $408,338,760 and $220,384,592, respectively) $ 455,370,566 $ 387,195,132 $ 201,838,256 Cash 1,467,630 1,764,227 1,774,855 Deposits with brokers for open futures contracts -- -- 278,400 Unrealized appreciation on forward swaps -- 1,182,800 1,324,800 Receivables: Interest 7,009,358 9,314,335 5,614,413 Investments sold 479,554 257,170 10,000 Other assets 122,233 101,340 24,468 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 464,449,341 399,815,004 210,865,192 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Borrowings -- -- 35,000,000 Cash overdraft -- -- -- Floating rate obligations 60,373,400 10,300,000 -- Unrealized depreciation on forward swaps -- 888,000 -- Payables: Investments purchased -- 2,229,426 -- Common share dividends 1,157,345 2,093,831 1,148,506 Preferred share dividends 4,860 9,724 N/A Variation margin on futures contracts -- -- 127,781 Accrued expenses: Interest -- -- 1,501 Management fees 238,081 162,338 171,152 Shelf offering costs -- 30,089 -- Other 154,532 138,227 63,554 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 61,928,218 15,851,635 36,512,494 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 126,850,000 95,000,000 N/A ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 275,671,123 $ 288,963,369 $ 174,352,698 ==================================================================================================================================== Common shares outstanding 19,888,518 25,848,387 16,028,190 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 13.86 $ 11.18 $ 10.88 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ==================================================================================================================================== Common shares, $.01 par value per share $ 198,885 $ 258,484 $ 160,282 Paid-in surplus 276,697,009 359,634,158 228,032,318 Undistributed (Over-distribution of) net investment income 2,573,495 1,114,843 816,777 Accumulated net realized gain (loss) from investments and derivative transactions (15,170,242) (51,195,288) (37,353,359) Net unrealized appreciation (depreciation) of investments and derivative transactions 11,371,976 (20,848,828) (17,303,320) ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 275,671,123 $ 288,963,369 $ 174,352,698 ==================================================================================================================================== Authorized shares: Common 200,000,000 Unlimited Unlimited Preferred 1,000,000 Unlimited Unlimited ====================================================================================================================================
N/A -- High Income Opportunity 2 (NMD) did not issue Preferred shares during the period November 15, 2007 (commencement of operations) through October 31, 2009. See accompanying notes to financial statements. 86 Nuveen Investments | Statement of | Operations Year Ended October 31, 2009
INVESTMENT SELECT QUALITY QUALITY QUALITY INCOME (NQM) (NQS) (NQU) ----------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 42,770,796 $ 43,596,144 $ 66,024,737 ----------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 4,568,922 4,423,495 7,113,191 Preferred shares - auction fees 439,950 520,349 811,018 Preferred shares - dividend disbursing agent fees 50,000 50,000 60,000 Shareholders' servicing agent fees and expenses 46,977 41,793 68,987 Interest expense 807,587 154,692 587,539 Custodian's fees and expenses 133,368 132,354 220,466 Directors'/Trustees' fees and expenses 22,124 22,352 36,211 Professional fees 58,718 57,110 86,196 Shareholders' reports - printing and mailing expenses 129,309 128,842 202,314 Stock exchange listing fees 12,322 11,730 18,596 Investor relations expense 45,126 45,004 70,981 Shelf offering expenses -- -- -- Other expenses 48,215 48,046 62,449 ----------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 6,362,618 5,635,767 9,337,948 Custodian fee credit (26,048) (28,758) (21,574) Expense reimbursement -- -- -- ----------------------------------------------------------------------------------------------------------------------- Net expenses 6,336,570 5,607,009 9,316,374 ----------------------------------------------------------------------------------------------------------------------- Net investment income 36,434,226 37,989,135 56,708,363 ----------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments (3,071,534) 838,871 (8,583,481) Forward swaps -- -- -- Futures -- -- -- Change in net unrealized appreciation (depreciation) of: Investments 71,805,746 64,648,767 85,907,477 Forward swaps -- -- -- Futures -- -- -- ----------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 68,734,212 65,487,638 77,323,996 ----------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,535,175) (2,102,870) (3,267,537) From accumulated net realized gains (401,006) -- -- ----------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,936,181) (2,102,870) (3,267,537) ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ 103,232,257 $ 101,373,903 $ 130,764,822 =======================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 87 | Statement of | Operations (continued) October 31, 2009
PREMIER HIGH INCOME HIGH INCOME INCOME OPPORTUNITY OPPORTUNITY 2 (NPF) (NMZ) (NMD) --------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 22,852,793 $ 28,631,846 $ 16,806,224 --------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 2,530,021 2,459,101 1,520,827 Preferred shares - auction fees 251,995 207,657 N/A Preferred shares - dividend disbursing agent fees 30,000 29,986 N/A Shareholders' servicing agent fees and expenses 25,384 2,396 357 Interest expense 556,256 76,719 371,375 Custodian's fees and expenses 77,635 86,031 50,004 Directors'/Trustees' fees and expenses 12,185 10,773 5,687 Professional fees 36,791 327,071 54,616 Shareholders' reports - printing and mailing expenses 80,632 87,569 37,763 Stock exchange listing fees 9,215 3,358 14,584 Investor relations expense 24,901 25,549 -- Shelf offering expenses -- 190,495 -- Other expenses 36,342 28,059 122,050 --------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 3,671,357 3,534,764 2,177,263 Custodian fee credit (14,154) (1,321) (147) Expense reimbursement -- (826,108) -- --------------------------------------------------------------------------------------------------------------------- Net expenses 3,657,203 2,707,335 2,177,116 --------------------------------------------------------------------------------------------------------------------- Net investment income 19,195,590 25,924,511 14,629,108 --------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments (7,068,813) (32,716,070) (30,433,348) Forward swaps (4,125,000) -- -- Futures -- (4,745,444) (1,952,740) Change in net unrealized appreciation (depreciation) of: Investments 47,005,036 77,003,728 60,267,241 Forward swaps 3,882,335 294,800 1,324,800 Futures -- (1,213,249) (551,429) --------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 39,693,558 38,623,765 28,654,524 --------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,007,804) (992,448) N/A From accumulated net realized gains -- -- N/A --------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,007,804) (992,448) N/A --------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ 57,881,344 $ 63,555,828 $ 43,283,632 =====================================================================================================================
N/A -- High Income Opportunity 2 (NMD) did not issue Preferred shares during the period November 15, 2007 (commencement of operations) through October 31, 2009. See accompanying notes to financial statements. 88 Nuveen Investments | Statement of | Changes in Net Assets
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS) ------------------------------ ----------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 36,434,226 $ 36,319,392 $ 37,989,135 $ 36,616,331 Net realized gain (loss) from: Investments (3,071,534) 1,970,511 838,871 (525,514) Forward swaps -- -- -- -- Futures -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments 71,805,746 (102,361,574) 64,648,767 (101,745,781) Forward swaps -- -- -- -- Futures -- -- -- -- Distributions to Preferred Shareholders: From net investment income (1,535,175) (10,309,882) (2,102,870) (10,295,198) From accumulated net realized gains (401,006) -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 103,232,257 (74,381,553) 101,373,903 (75,950,162) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (27,621,403) (27,513,935) (28,847,903) (27,346,151) From accumulated net realized gains (1,071,041) -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (28,692,444) (27,513,935) (28,847,903) (27,346,151) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Proceeds from sale of shares, net of offering costs -- -- -- -- Proceeds from shelf offering, net of offering costs -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- 165,835 167,321 Repurchased -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- 165,835 167,321 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 74,539,813 (101,895,488) 72,691,835 (103,128,992) Net assets applicable to Common shares at the beginning of period 436,370,407 538,265,895 408,541,475 511,670,467 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $ 510,910,220 $ 436,370,407 $ 481,233,310 $ 408,541,475 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 5,658,233 $ (1,608,899) $ 5,785,986 $ (982,059) ====================================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 89 | Statement of | Changes in Net Assets (continued)
QUALITY INCOME (NQU) PREMIER INCOME (NPF) ------------------------------ ----------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 56,708,363 $ 56,052,360 $ 19,195,590 $ 18,713,212 Net realized gain (loss) from: Investments (8,583,481) 2,043,801 (7,068,813) (3,335,364) Forward swaps -- -- (4,125,000) (247,000) Futures -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments 85,907,477 (124,593,451) 47,005,036 (53,822,222) Forward swaps -- -- 3,882,335 (4,012,094) Futures -- -- -- -- Distributions to Preferred Shareholders: From net investment income (3,267,537) (16,361,736) (1,007,804) (5,664,126) From accumulated net realized gains -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 130,764,822 (82,859,026) 57,881,344 (48,367,594) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (43,375,504) (39,634,364) (14,562,011) (13,435,852) From accumulated net realized gains -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (43,375,504) (39,634,364) (14,562,011) (13,435,852) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Proceeds from sale of shares, net of offering costs -- -- -- -- Proceeds from shelf offering, net of offering costs -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- Repurchased -- -- (165,375) (57,215) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- (165,375) (57,215) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 87,389,318 (122,493,390) 43,153,958 (61,860,661) Net assets applicable to Common shares at the beginning of period 687,592,618 810,086,008 232,517,165 294,377,826 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $ 774,981,936 $ 687,592,618 $ 275,671,123 $ 232,517,165 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 9,681,121 $ (369,085) $ 2,573,495 $ (1,037,332) ====================================================================================================================================
90 Nuveen Investments
HIGH INCOME HIGH INCOME OPPORTUNITY (NMZ) OPPORTUNITY 2 (NMD) ----------------------------- -------------------------------- FOR THE PERIOD 11/15/07 YEAR YEAR YEAR (COMMENCEMENT ENDED ENDED ENDED OF OPERATIONS) 10/31/09 10/31/08 10/31/09 THROUGH 10/31/08 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 25,924,511 $ 30,750,774 $ 14,629,108 $ 14,031,123 Net realized gain (loss) from: Investments (32,716,070) (13,697,890) (30,433,348) (6,437,236) Forward swaps -- -- -- -- Futures (4,745,444) (704,149) (1,952,740) 1,400,745 Change in net unrealized appreciation (depreciation) of: Investments 77,003,728 (122,536,846) 60,267,241 (78,813,577) Forward swaps 294,800 -- 1,324,800 -- Futures (1,213,249) 1,213,249 (551,429) 469,645 Distributions to Preferred Shareholders: From net investment income (992,448) (5,489,754) N/A N/A From accumulated net realized gains -- (526,498) N/A N/A ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 63,555,828 (110,991,114) 43,283,632 (69,349,300) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (25,434,721) (23,458,428) (15,314,000) (12,459,756) From accumulated net realized gains -- (2,146,329) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (25,434,721) (25,604,757) (15,314,000) (12,459,756) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Proceeds from sale of shares, net of offering costs -- -- -- 225,146,250 Proceeds from shelf offering, net of offering costs 20,102,553 4,544,766 -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 616,836 690,395 1,638,496 1,307,101 Repurchased -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 20,719,389 5,235,161 1,638,496 226,453,351 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 58,840,496 (131,360,710) 29,608,128 144,644,295 Net assets applicable to Common shares at the beginning of period 230,122,873 361,483,583 144,744,570 100,275 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $ 288,963,369 $ 230,122,873 $ 174,352,698 $ 144,744,570 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 1,114,843 $ 2,005,779 $ 816,777 $ 1,569,363 ====================================================================================================================================
N/A -- High Income Opportunity 2 (NMD) did not issue Preferred shares during the period November 15, 2007 (commencement of operations) through October 31, 2009. See accompanying notes to financial statements. Nuveen Investments 91 | Statement of | Cash Flows Year ended October 31, 2009
INVESTMENT PREMIER HIGH INCOME QUALITY INCOME OPPORTUNITY 2 (NQM) (NPF) (NMD) ------------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES: NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 103,232,257 $ 57,881,344 $ 43,283,632 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 (72,943,203) (30,011,606) (79,985,933) Proceeds from sales and maturities of investments 59,310,793 32,840,579 98,020,087 Proceeds from (Purchases of) short-term investments, net 19,450,000 13,344,500 -- Proceeds from (Payments for) terminated forward swaps -- (4,125,000) -- Proceeds from (Payments for) closed/expired futures contracts -- -- (1,952,740) Amortization (Accretion) of premiums and discounts, net (1,014,064) (3,164,065) (428,297) (Increase) Decrease in receivable for interest (370,746) (233,493) 817,111 (Increase) Decrease in receivable for investments sold (3,525,220) (69,832) 5,000 (Increase) Decrease in receivable for variation margin on futures contracts -- -- 128,250 (Increase) Decrease in other assets (82,481) (67,513) 59,879 Increase (Decrease) in payable for investments purchased (381,337) -- -- Increase (Decrease) in payable for Preferred share dividends (52,785) (20,547) -- Increase (Decrease) in payable for variation margin on futures contracts -- -- 127,781 Increase (Decrease) in accrued interest on borrowings -- -- (211,414) Increase (Decrease) in accrued management fees 76,506 45,046 50,762 Increase (Decrease) in accrued other liabilities 349,350 (22,394) 16,445 Net realized (gain) loss from investments 3,071,534 7,068,813 30,433,348 Net realized (gain) loss from forward swaps -- 4,125,000 -- Net realized (gain) loss from futures -- -- 1,952,740 Change in net unrealized (appreciation) depreciation of investments (71,805,746) (47,005,036) (60,267,241) Change in net unrealized (appreciation) depreciation of forward swaps -- (3,882,335) (1,324,800) Taxes paid on undistributed capital gains (6,567) -- (88) ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by (used in) operating activities 35,308,291 26,703,461 30,724,522 ------------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM FINANCING ACTIVITIES: Increase (Decrease) in borrowings -- -- (5,000,000) Increase (Decrease) in cash overdraft balance -- -- (9,539,448) Increase (Decrease) in floating rate obligations 13,905,000 (13,776,106) -- Cash distributions paid to Common shareholders (28,433,475) (14,413,389) (13,659,319) Increase (Decrease) in accrued shelf offering costs -- -- (472,500) Cost of Common shares repurchased -- (165,375) -- Increase (Decrease) in Preferred shares (18,750,000) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by (used in) financing activities (33,278,475) (28,354,870) (28,671,267) ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE (DECREASE) IN CASH 2,029,816 (1,651,409) 2,053,255 Cash and cash equivalents at the beginning of year 5,648,301 3,119,039 -- ------------------------------------------------------------------------------------------------------------------------------------ CASH AND CASH EQUIVALENTS AT THE END OF YEAR $ 7,678,117 $ 1,467,630 $ 2,053,255 ====================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Non-cash financing activities not included herein consist of reinvestments of Common share distributions of $0, $0 and $1,638,496, for Investment Quality (NQM), Premier Income (NPF) and High Income Opportunity 2 (NMD), respectively. Cash paid by Investment Quality (NQM), Premier Income (NPF) and High Income Opportunity 2 (NMD) for interest was $807,587, $556,256 and $582,789, respectively. See accompanying notes to financial statements. 92 Nuveen Investments | 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 Investment Quality Municipal Fund, Inc. (NQM), Nuveen Select Quality Municipal Fund, Inc. (NQS), Nuveen Quality Income Municipal Fund, Inc. (NQU), Nuveen Premier Municipal Income Fund, Inc. (NPF), Nuveen Municipal High Income Opportunity Fund (NMZ) and Nuveen Municipal High Income Opportunity Fund 2 (NMD) (collectively, the "Funds"). Common shares of Investment Quality (NQM), Select Quality (NQS), Quality Income (NQU), Premier Income (NPF) and High Income Opportunity 2 (NMD) are traded on the New York Stock Exchange (NYSE) while Common shares of High Income Opportunity (NMZ) 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. Prior to the commencement of operations, High Income Opportunity 2 (NMD) had no operations other than those related to organizational matters, the initial capital contribution of $100,275 by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), and the recording of the organization expenses ($11,000) and their reimbursement by Nuveen Investments, LLC, also a wholly owned subsidiary of Nuveen. 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 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, Investment Quality (NQM), Select Quality (NQS) and High Income Opportunity (NMZ) had outstanding when issued/delayed delivery purchase commitments of $4,148,078, $3,422,577 and $985,299, respectively. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Nuveen Investments 93 | Notes to | Financial Statements (continued) Professional Fees Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders. 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. Preferred Shares Although authorized, High Income Opportunity 2 (NMD) has not issue Preferred shares since its commencement of operations on November 17, 2007. The following Funds have issued and outstanding Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Preferred shares are issued in more than one Series. The dividend rate paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. As of October 31, 2009, the number of Preferred shares outstanding, by Series and in total, for each Fund is as follows: INVESTMENT SELECT QUALITY PREMIER HIGH INCOME QUALITY QUALITY INCOME INCOME OPPORTUNITY (NQM) (NQS) (NQU) (NPF) (NMZ) -------------------------------------------------------------------------------- Number of shares: Series M 1,750 1,801 2,567 769 1,826 Series T 1,750 1,801 2,569 2,153 987 Series W 1,749 2,522 2,568 -- 987 Series W2 -- -- 1,780 -- -- Series TH 1,429 1,405 3,423 2,152 -- Series F 1,750 2,522 2,568 -- -- -------------------------------------------------------------------------------- Total 8,428 10,051 15,475 5,074 3,800 ================================================================================ Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the Preferred shares issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many Preferred shareholders who wanted to sell their shares in these auctions were unable to do so. 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 Preferred shares. These developments have generally not affected the portfolio 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 will likely be 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 then they otherwise would have been. As of October 31, 2009, the aggregate amount of outstanding Preferred shares redeemed by each Fund is as follows: 94 Nuveen Investments
HIGH INVESTMENT SELECT QUALITY PREMIER INCOME QUALITY QUALITY INCOME INCOME OPPORTUNITY (NQM) (NQS) (NQU) (NPF) (NMZ) --------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed, at liquidation value $ 90,300,000 $ 27,725,000 $ 65,125,000 $ 38,150,000 $ 60,000,000 ===========================================================================================================================
Organization and Offering Costs Nuveen Investments, LLC has agreed to reimburse all organizational costs (approximately $11,000) and pay all Common share offering costs (other than the sales load) that exceed $.03 per Common share of High Income Opportunity Fund 2 (NMD). High Income Opportunity Fund 2's (NMD) share of Common share offering costs ($472,500) were recorded as reductions of the proceeds from the sale of Common shares. Common Shares Shelf Offering During the current fiscal year, High Income Opportunity (NMZ) filed a registration statement with the Securities and Exchange Commission (SEC) to issue the remaining 1,900,000 Common shares through its ongoing shelf offering which became effective with the SEC on September 24, 2007, authorizing the Fund to issue up to 2,400,000 Common shares. During the fiscal year ended October 31, 2009, the Fund had issued 1,900,000 Common shares, receiving aggregate offering proceeds of $20,102,553. In addition, the Fund filed another registration statement with the SEC to register an additional 2,600,000 Common shares, which registration statement was not yet effective with the SEC as of October 31, 2009. Under this new equity shelf program, the Fund, subject to market conditions, may raise additional equity capital from time to time in varying amounts and offering methods at a net price at or above the Fund's NAV per Common share. On October 30, 2009, a registration statement filed by High Income Opportunity 2 (NMD) with the SEC became effective authorizing the Fund to issue 1,600,000 Common shares through a shelf offering, As of October 31, 2009, the Fund had not issued any Common shares through the shelf offering. Under this equity shelf program, the Fund, subject to market conditions, may raise additional equity capital from time to time in varying amounts and offering methods at a net price at or above the Fund's NAV per Common share. Shelf Offering Costs Costs incurred by High Income Opportunity (NMZ) in connection with the offering of its additional Common shares are recorded as a deferred charge which are amortized over the period such additional Common shares are sold not to exceed the one-year life of the shelf offering period. 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 on floating rate obligations" 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. Nuveen Investments 95 | Notes to | Financial Statements (continued) 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. At October 31, 2009, each Fund's maximum exposure to externally-deposited Recourse Trusts, is as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2 (NQM) (NQS) (NQU) (NPF) (NMZ) (NMD) ------------------------------------------------------------------------------------------------------------------------------------ Maximum exposure to Recourse Trusts $ -- $ 18,750,000 $ 7,500,000 $ 4,955,000 $ -- $ 39,495,000 ====================================================================================================================================
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:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME QUALITY QUALITY INCOME INCOME OPPORTUNITY (NQM) (NQS) (NQU) (NPF) (NMZ) ------------------------------------------------------------------------------------------------------------------------------------ Average floating rate obligations outstanding $ 86,302,630 $ 15,322,890 $ 60,435,668 $ 62,697,030 $ 10,300,000 Average annual interest rate and fees 0.94% 1.01% 0.97% 0.89% 0.74% ====================================================================================================================================
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." 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 following Funds invested in forward swap contracts during the fiscal year ended October 31, 2009. The average notional amount of forward swap contracts outstanding during the fiscal year ended October 31, 2009, were as follows:
PREMIERE HIGH INCOME HIGH INCOME INCOME OPPORTUNITY OPPORTUNITY 2 (NPF) (NMZ) (NMD) ----------------------------------------------------------------------------------------------------------- Average notional amount of forward swap contracts outstanding $ 7,200,000* $ 10,800,00 $ 5,400,000 ===========================================================================================================
* The average notional amount is calculated based on the outstanding notional amount 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 forward swap contracts at the end of the current fiscal year. Refer to Footnote 3 - Derivative Instruments and Hedging Activities for further details on swap contract activity. 96 Nuveen Investments 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. The following Funds 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, were as follows: HIGH INCOME HIGH INCOME OPPORTUNITY OPPORTUNITY 2 (NMZ) (NMD) -------------------------------------------------------------------------------- Average number of futures contracts outstanding 56* 46 ================================================================================ * 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. 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 Adviser 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. 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. Nuveen Investments 97 | Notes to | Financial Statements (continued) 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.). 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:
INVESTMENT QUALITY (NQM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 798,173,885 $ -- $ 798,173,885 =========================================================================================== SELECT QUALITY (NQS) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 730,919,102 $ -- $ 730,919,102 =========================================================================================== QUALITY INCOME (NQU) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 1,206,346,732 $ -- $ 1,206,346,732 =========================================================================================== PREMIER INCOME (NPF) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 454,070,566 $ -- $ 454,070,566 Short-Term Investments -- 1,300,000 -- 1,300,000 ------------------------------------------------------------------------------------------- Total $ -- $ 455,370,566 $ -- $ 455,370,566 =========================================================================================== HIGH INCOME OPPORTUNITY (NMZ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 387,195,132 $ -- $ 387,195,132 Derivatives: Forward Swaps* -- 294,800 -- 294,800 ------------------------------------------------------------------------------------------- Total $ -- $ 387,489,932 $ -- $ 387,489,932 =========================================================================================== HIGH INCOME OPPORTUNITY 2 (NMD) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 201,838,256 $ -- $ 201,838,256 Derivatives: Forward Swaps* -- 1,324,800 -- 1,324,800 Futures Contracts* (81,784) -- -- (81,784) ------------------------------------------------------------------------------------------- Total $ (81,784) $ 203,163,056 $ -- $ 203,081,272 ===========================================================================================
* Represents net unrealized appreciation (depreciation). 98 Nuveen Investments 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 fair value of all derivative instruments held by the Funds as of October 31, 2009, the location of these instruments on the Statement of Assets and Liabilities, and the primary underlying risk exposure. HIGH INCOME OPPORTUNITY (NMZ)
LOCATION ON THE STATEMENT OF ASSETS AND LIABILITIES -------------------------------------------------------------------------------------- ASSET DERIVATIVES LIABILITY DERIVATIVES UNDERLYING DERIVATIVE ------------------------------------- ---------------------------------------------- RISK EXPOSURE INSTRUMENT LOCATION VALUE LOCATION VALUE ---------------------------------------------------------------------------------------------------------------------------------- Interest Rate Forward Swaps Unrealized appreciation Unrealized depreciation on forward swaps* $ 1,182,800 on forward swaps* $ 888,000 ==================================================================================================================================
HIGH INCOME OPPORTUNITY 2 (NMD)
LOCATION ON THE STATEMENT OF ASSETS AND LIABILITIES -------------------------------------------------------------------------------------- ASSET DERIVATIVES LIABILITY DERIVATIVES UNDERLYING DERIVATIVE ------------------------------------- ---------------------------------------------- RISK EXPOSURE INSTRUMENT LOCATION VALUE LOCATION VALUE ---------------------------------------------------------------------------------------------------------------------------------- Interest Rate Forward Swaps Unrealized appreciation on forward swaps* $ 1,324,800 -- $ -- ---------------------------------------------------------------------------------------------------------------------------------- Interest Rate Futures -- -- Deposits with brokers for open 81,784 futures contracts and Payable for variation margin on futures contracts** ---------------------------------------------------------------------------------------------------------------------------------- Total $ 1,324,800 $ 81,784 ==================================================================================================================================
* Represents cumulative appreciation (depreciation) of swap contracts as reported in the Portfolio of Investments. ** Value represents cumulative unrealized appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments and not the deposits with brokers, if any, or the receivable or payable for variation margin on futures contracts presented on the Statement of Assets and Liabilities. 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.
PREMIERE INCOME NET REALIZED GAIN (LOSS) FROM FORWARD SWAPS (NPF) ----------------------------------------------------------------------------------------------------------------------- RISK EXPOSURE Interest Rate $ (4,125,000) =======================================================================================================================
HIGH INCOME HIGH INCOME OPPORTUNITY OPPORTUNITY 2 NET REALIZED GAIN (LOSS) FROM FUTURES CONTRACTS (NMZ) (NMD) ----------------------------------------------------------------------------------------------------------------------- RISK EXPOSURE Interest Rate $ (4,745,444) $ (1,952,740) =======================================================================================================================
PREMIERE HIGH INCOME HIGH INCOME INCOME OPPORTUNITY OPPORTUNITY 2 CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) OF FORWARD SWAPS (NPF) (NMZ) (NMD) ----------------------------------------------------------------------------------------------------------------------- RISK EXPOSURE Interest Rate $ 3,882,335 $ 294,800 $ 1,324,800 =======================================================================================================================
HIGH INCOME HIGH INCOME OPPORTUNITY OPPORTUNITY 2 CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) OF FUTURES CONTRACTS (NMZ) (NMD) ----------------------------------------------------------------------------------------------------------------------- RISK EXPOSURE Interest Rate $ (1,213,249) $ (551,429) =======================================================================================================================
Nuveen Investments 99 | Notes to | Financial Statements (continued) 4. FUND SHARES Common Shares Transactions in Common shares were as follows:
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS) QUALITY INCOME (NQU) ------------------------- ------------------------ ---------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR 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 -- -- 12,611 11,184 -- -- Repurchased -- -- -- -- -- -- ================================================================================================================================= Weighted average Common share: Price per share repurchased -- -- -- -- -- -- Discount per share repurchased -- -- -- -- -- -- =================================================================================================================================
HIGH INCOME HIGH INCOME PREMIER INCOME (NPF) OPPORTUNITY (NMZ) OPPORTUNITY 2 (NMD) ------------------------- ------------------------ ---------------------------- FOR THE PERIOD 11/15/07 (COMMENCEMENT OF OPERATIONS) YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED THROUGH 10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08 --------------------------------------------------------------------------------------------------------------------------------- Common shares: Sold* -- -- -- -- -- 15,750,000 Sold through shelf offering** -- -- 1,900,000 297,054 -- -- Issued to shareholders due to reinvestment of distributions -- -- 62,054 48,248 174,451 96,739 Repurchased (15,700) (4,500) -- -- -- -- --------------------------------------------------------------------------------------------------------------------------------- (15,700) (4,500) 1,962,054 345,302 174,451 15,846,739 ================================================================================================================================= Weighted average Common share: Price per share repurchased 10.51 12.69 -- -- -- -- Discount per share repurchased 17.21% 12.99% -- -- -- -- Premium per shelf offering share sold -- -- 11.92% 4.99% -- -- =================================================================================================================================
* High Income Opportunity 2 (NMD) was the only Fund to sell shares of Common stock during the fiscal years ended October 31, 2009 and October 31, 2008. ** High Income Opportunity (NMZ) and High Income Opportunity 2 (NMD) are the only Funds authorized to issue additional shares of its Common stock through a shelf offering. Preferred Shares High Income Opportunity 2 (NMD) has not issued Preferred shares since commencement of operations on November 15, 2007. Transactions in Preferred shares were as follows:
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS) -------------------------------------------- --------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/09 10/31/08 10/31/09 10/31/08 -------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed and/or noticed for redemption: Series M 156 $ 3,900,000 594 $ 14,850,000 117 $ 2,925,000 82 $ 2,050,000 Series T 156 3,900,000 594 14,850,000 117 2,925,000 82 2,050,000 Series W 156 3,900,000 595 14,875,000 164 4,100,000 114 2,850,000 Series TH 126 3,150,000 485 12,125,000 91 2,275,000 64 1,600,000 Series F 156 3,900,000 594 14,850,000 163 4,075,000 115 2,875,000 -------------------------------------------------------------------------------------------------------------------------------- Total 750 $ 18,750,000 2,862 $ 71,550,000 652 $ 16,300,000 457 $ 11,425,000 ================================================================================================================================
100 Nuveen Investments
QUALITY INCOME (NQU) PREMIER INCOME (NPF) --------------------------------------------- --------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/09 10/31/08 10/31/09 10/31/08 --------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed and/or noticed for redemption: Series M 196 $ 4,900,000 237 $ 5,925,000 -- $ -- 231 $ 5,775,000 Series T 195 4,875,000 236 5,900,000 -- -- 647 16,175,000 Series W 196 4,900,000 236 5,900,000 -- -- -- -- Series W2 136 3,400,000 164 4,100,000 -- -- -- -- Series TH 261 6,525,000 316 7,900,000 -- -- 648 16,200,000 Series F 196 4,900,000 236 5,900,000 -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total 1,180 $ 29,500,000 1,425 $ 35,625,000 -- $ -- 1,526 $ 38,150,000 ==========================================================================================================================
HIGH INCOME OPPORTUNITY (NMZ) --------------------------------------------- YEAR ENDED YEAR ENDED 10/31/09 10/31/08 --------------------------------------------- SHARES AMOUNT SHARES AMOUNT -------------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed and/or noticed for redemption: Series M 864 $ 21,600,000 310 $ 7,750,000 Series T 468 11,700,000 145 3,625,000 Series W 468 11,700,000 145 3,625,000 -------------------------------------------------------------------------------------------------------------------------------- Total 1,800 $ 45,000,000 600 $ 15,000,000 ================================================================================================================================
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:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2 (NQM) (NQS) (NQU) (NPF) (NMZ) (NMD) ----------------------------------------------------------------------------------------------------------------------------------- Purchases $ 72,943,203 $ 56,888,488 $ 98,638,198 $ 30,011,606 $ 92,741,796 $ 79,985,933 Sales and maturities 59,310,793 76,086,298 130,598,787 32,840,579 136,261,028 98,020,087 ===================================================================================================================================
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:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2 (NQM) (NQS) (NQU) (NPF) (NMZ) (NMD) ----------------------------------------------------------------------------------------------------------------------------------- Cost of investments $ 696,605,583 $ 711,263,556 $ 1,120,923,962 $ 389,952,202 $ 401,150,974 $ 224,471,301 ===================================================================================================================================
Nuveen Investments 101 | Notes to | Financial Statements (continued) Gross unrealized appreciation and gross unrealized depreciation of investments at October 31, 2009, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2 (NQM) (NQS) (NQU) (NPF) (NMZ) (NMD) ------------------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 40,473,637 $ 33,089,197 $ 65,507,800 $ 20,772,336 $ 25,260,676 $ 7,986,500 Depreciation (32,561,891) (31,992,224) (46,703,761) (15,725,435) (49,517,035) (30,619,545) ------------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ 7,911,746 $ 1,096,973 $ 18,804,039 $ 5,046,901 $ (24,256,359) $ (22,633,045) ===============================================================================================================================
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:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2 (NQM) (NQS) (NQU) (NPF) (NMZ) (NMD) ------------------------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $ 7,653,863 $ 7,736,348 $ 12,160,734 $ 3,674,261 $ 2,380,245 $ 1,791,876 Undistributed net ordinary income ** 5,782 818 85,425 -- 113,393 60,076 Undistributed net long-term capital gains -- 555,014 -- -- -- -- ===============================================================================================================================
* 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:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2 2009 (NQM) (NQS) (NQU) (NPF) (NMZ) (NMD) ------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income *** $ 28,837,685 $ 30,740,421 $ 46,239,909 $ 15,422,213 $ 25,228,758 $ 15,300,039 Distributions from net ordinary income ** 104,651 -- -- -- 1,107,374 -- Distributions from net long-term capital gains **** 1,470,419 -- -- -- -- -- ===============================================================================================================================
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2 2008 (NQM) (NQS) (NQU) (NPF) (NMZ) (NMD)***** ------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 37,735,721 $ 37,664,043 $ 55,938,511 $ 19,090,394 $ 28,742,490 $ 11,191,457 Distributions from net ordinary income ** 202,710 -- -- -- 87,468 -- Distributions from net long-term capital gains -- -- -- -- 2,667,895 -- ===============================================================================================================================
** 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. ***** For the period November 15, 2007 (commencement of operations) through October 31, 2008. At October 31, 2009, the Funds' tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
INVESTMENT QUALITY PREMIER HIGH INCOME HIGH INCOME QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2 (NQM) (NQU) (NPF) (NMZ) (NMD) ---------------------------------------------------------------------------------------------------------- Expiration: October 31, 2011 $ -- $ 7,997,041 $ -- $ -- $ -- October 31, 2013 -- -- 156,322 -- -- October 31, 2016 -- -- 3,445,683 12,880,924 4,564,842 October 31, 2017 1,915,769 -- 4,764,079 34,412,364 28,536,506 ---------------------------------------------------------------------------------------------------------- Total $ 1,915,769 $ 7,997,041 $ 8,366,084 $ 47,293,288 $ 33,101,348 ==========================================================================================================
102 Nuveen Investments 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. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets of each Fund as follows: INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS) QUALITY INCOME (NQU) PREMIER INCOME (NPF) 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 ================================================================================ HIGH INCOME OPPORTUNITY (NMZ) HIGH INCOME OPPORTUNITY FUND 2 (NMD) AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .5500% For the next $125 million .5375 For the next $250 million .5250 For the next $500 million .5125 For the next $1 billion .5000 For net assets over $2 billion .4750 ================================================================================ 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 BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 ================================================================================ (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 includes assets managed by the Adviser that are attributable to each fund's use of 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. Nuveen Investments 103 | Notes to | Financial Statements (continued) 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. For the first eight years of High Income Opportunity's (NMZ) 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 NOVEMBER 30, NOVEMBER 30, -------------------------------------------------------------------------------- 2003* .32% 2009 .24% 2004 .32 2010 .16 2005 .32 2011 .08 2006 .32 2007 .32 2008 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse High Income Opportunity (NMZ) for any portion of its fees and expenses beyond November 30, 2011. During the fiscal year ended October 31, 2009, Nuveen Investments, LLC received commissions of $124,869 related to the sale of Common shares as a result of the High Income Opportunity (NMZ) shelf offering. 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. 9. BORROWINGS During January 2008, credit issues associated with sub-prime mortgages and municipal bond insurers caused High Income Opportunity 2 (NMD) to postpone its auction rate preferred shares offering, and subsequent failed auctions of the auction rate preferred shares issued by other closed-end funds have postponed the issuance of the Fund's auction rate preferred shares indefinitely. Management determined that leveraging the Fund with debt as a replacement for the auction rate preferred shares continued to benefit the Fund's shareholders. As a result, the Fund entered into a $50 million senior committed secured 364-day revolving line of credit with its custodian bank. During the current fiscal period, the Fund extended the maturity date of its line of credit to July 29, 2010. Amounts drawn on the line of credit are recognized as "Borrowings" on the Statement of Assets and Liabilities. During the fiscal year ended October 31, 2009, the average daily balance outstanding on the line of credit and average annual interest rate were $37,296,443 and 1.00%, respectively. Interest on the line of credit is calculated at a rate per annum of the Federal Funds Rate plus .75%. Interest expense incurred on the line of credit is included as a component of "Interest expense" on the Statement of Operations. In addition interest expense, the Fund accrued a commitment fee of .15% per annum on the unused portion of the line of credit which is included as a component of "Other" expenses on the Statement of Operations. 104 Nuveen Investments 10. 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:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME HIGH INCOME QUALITY QUALITY INCOME INCOME OPPORTUNITY OPPORTUNITY 2 (NQM) (NQS) (NQU) (NPF) (NMZ) (NMD) -------------------------------------------------------------------------------------------- Dividend per share $ .0700 $ .0750 $ .0720 $ .0660 $ .0835 $ .0800 ============================================================================================
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 105 | Financial | Highlights Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS ------------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS BEGINNING FROM NET FROM COMMON NET INVESTMENT CAPITAL SHARE NET REALIZED/ INCOME TO GAINS TO NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL -------------------------------------------------------------------------------------------------------- INVESTMENT QUALITY (NQM) -------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ 12.18 $ 1.02 $ 1.91 $ (.04) $ (.01) $ 2.88 2008 15.03 1.01 (2.80) (.29) -- (2.08) 2007 15.71 1.02 (.60) (.30) -- .12 2006 15.49 1.05 .42 (.24) (.03) 1.20 2005 16.06 1.05 (.39) (.16) (.01) .49 SELECT QUALITY (NQS) -------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 12.01 1.12 1.92 (.06) -- 2.98 2008 15.05 1.08 (3.02) (.30) -- (2.24) 2007 15.62 1.07 (.52) (.29) -- .26 2006 15.46 1.07 .23 (.26) -- 1.04 2005 15.69 1.06 (.16) (.16) -- .74 ======================================================================================================== LESS DISTRIBUTIONS ------------------------------------ NET OFFERING INVESTMENT CAPITAL COSTS AND ENDING INCOME TO GAINS TO PREFERRED COMMON COMMON COMMON SHARE SHARE ENDING SHARE- SHARE- UNDERWRITING NET ASSET MARKET HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE -------------------------------------------------------------------------------------------------------- INVESTMENT QUALITY (NQM) -------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ (.77) $ (.03) $ (.80) $ -- $ 14.26 $ 13.13 2008 (.77) -- (.77) -- 12.18 10.64 2007 (.80) -- (.80) -- 15.03 13.88 2006 (.84) (.14) (.98) -- 15.71 15.60 2005 (.96) (.10) (1.06) -- 15.49 14.45 SELECT QUALITY (NQS) -------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 (.85) -- (.85) -- 14.14 13.77 2008 (.80) -- (.80) -- 12.01 10.99 2007 (.83) -- (.83) -- 15.05 15.00 2006 (.88) -- (.88) -- 15.62 15.47 2005 (.97) -- (.97) -- 15.46 14.83 ========================================================================================================
PREFERRED SHARES AT END OF PERIOD ---------------------------------------- AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE ------------------------------------------------------------------------------------ INVESTMENT QUALITY (NQM) ------------------------------------------------------------------------------------ Year Ended 10/31: 2009 $ 210,700 $ 25,000 $ 85,621 2008 229,450 25,000 72,545 2007 301,000 25,000 69,706 2006 301,000 25,000 71,634 2005 301,000 25,000 71,001 SELECT QUALITY (NQS) ------------------------------------------------------------------------------------ Year Ended 10/31: 2009 251,275 25,000 72,879 2008 267,575 25,000 63,171 2007 279,000 25,000 70,849 2006 279,000 25,000 72,491 2005 279,000 25,000 71,953 ====================================================================================
106 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ---------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT/REFUND ------------------ --------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET PORTFOLIO MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER VALUE* VALUE* SHARES (000) INTEREST++(A) INTEREST++ INCOME++ RATE ------------------------------------------------------------------------------------------------------------------------ INVESTMENT QUALITY (NQM) ------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 31.77% 24.35% $ 510,910 1.34% 1.17% 7.66% 8% 2008 (18.72) (14.43) 436,370 1.46 1.20 7.07 9 2007 (6.17) .82 538,266 1.35 1.19 6.67 11 2006 15.33 8.09 561,471 1.20 1.20 6.79 10 2005 1.17 3.10 553,857 1.20 1.20 6.59 22 SELECT QUALITY (NQS) ------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 34.19 25.67 481,233 1.29 1.25 8.66 8 2008 (22.19) (15.50) 408,541 1.27 1.22 7.54 10 2007 2.31 1.70 511,670 1.21 1.18 6.95 8 2006 10.47 6.94 529,996 1.18 1.18 6.91 5 2005 4.14 4.77 523,994 1.18 1.18 6.76 4 ========================================================================================================================
* 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. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to 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 107 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS --------------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS BEGINNING FROM NET FROM COMMON NET INVESTMENT CAPITAL SHARE NET REALIZED/ INCOME TO GAINS TO NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL ----------------------------------------------------------------------------------------------------------- QUALITY INCOME (NQU) ----------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ 12.68 $ 1.05 $ 1.42 $ (.06) $ -- $ 2.41 2008 14.94 1.03 (2.26) (.30) -- (1.53) 2007 15.49 1.01 (.51) (.30) -- .20 2006 15.26 1.01 .30 (.26) -- 1.05 2005 15.54 1.02 (.22) (.16) -- .64 PREMIER INCOME (NPF) ----------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 11.68 .96 2.00 (.05) -- 2.91 2008 14.79 .94 (3.09) (.28) -- (2.43) 2007 15.39 .95 (.59) (.29) -- .07 2006 14.90 .94 .51 (.26) -- 1.19 2005 15.53 .94 (.39) (.16) (.01) .38 =========================================================================================================== LESS DISTRIBUTIONS ------------------------------------ NET OFFERING INVESTMENT CAPITAL COSTS AND ENDING INCOME TO GAINS TO PREFERRED COMMON COMMON COMMON SHARE SHARE ENDING SHARE- SHARE- UNDERWRITING NET ASSET MARKET HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE ----------------------------------------------------------------------------------------------------------- QUALITY INCOME (NQU) ----------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ (.80) $ -- $ (.80) $ -- $ 14.29 $ 13.26 2008 (.73) -- (.73) -- 12.68 11.67 2007 (.75) -- (.75) -- 14.94 13.64 2006 (.82) -- (.82) -- 15.49 14.73 2005 (.92) -- (.92) -- 15.26 14.34 PREMIER INCOME (NPF) ----------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 (.73) -- (.73) -- 13.86 12.40 2008 (.68) -- (.68) -- 11.68 10.07 2007 (.67) -- (.67) -- 14.79 13.30 2006 (.70) -- (.70) -- 15.39 13.65 2005 (.88) (.13) (1.01) -- 14.90 13.57 ===========================================================================================================
PREFERRED SHARES AT END OF PERIOD --------------------------------------------- AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE ------------------------------------------------------------------------------------- QUALITY INCOME (NQU) ------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ 386,875 $ 25,000 $ 75,080 2008 416,375 25,000 66,284 2007 452,000 25,000 69,806 2006 452,000 25,000 71,446 2005 452,000 25,000 70,745 PREMIER INCOME (NPF) ------------------------------------------------------------------------------------- Year Ended 10/31: 2009 126,850 25,000 79,330 2008 126,850 25,000 70,825 2007 165,000 25,000 69,603 2006 165,000 25,000 71,839 2005 165,000 25,000 70,367 =====================================================================================
108 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 PORTFOLIO MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER VALUE* VALUE* SHARES (000) INTEREST++(A) INTEREST++ INCOME++ RATE --------------------------------------------------------------------------------------------------------------------- QUALITY INCOME (NQU) --------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 21.10% 19.58% $ 774,982 1.28% 1.20% 7.80% 8% 2008 (9.55) (10.67) 687,593 1.38 1.19 7.15 9 2007 (2.54) 1.31 810,086 1.38 1.17 6.65 5 2006 8.55 7.07 839,751 1.18 1.18 6.62 11 2005 4.78 4.15 827,077 1.18 1.18 6.57 6 PREMIER INCOME (NPF) --------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 31.11 25.53 275,671 1.43 1.21 7.47 7 2008 (19.97) (17.03) 232,517 1.78 1.23 6.74 7 2007 2.28 .48 294,378 1.84 1.20 6.30 10 2006 5.93 8.20 309,140 1.24 1.24 6.27 35 2005 1.05 2.49 299,423 1.23 1.23 6.16 20 =====================================================================================================================
* 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. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to 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 109 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS --------------------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS BEGINNING FROM NET FROM COMMON NET INVESTMENT CAPITAL SHARE NET REALIZED/ INCOME TO GAINS TO NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL --------------------------------------------------------------------------------------------------------------------- HIGH INCOME OPPORTUNITY (NMZ) --------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ 9.63 $ 1.06 $ 1.57 $ (.04) $ -- $ 2.59 2008 15.36 1.29 (5.70) (.23) (.02) (4.66) 2007 16.00 1.23 (.65) (.24) --*** .34 2006 15.36 1.21 .65 (.19) -- 1.67 2005 14.87 1.22 .54 (.13) (.01) 1.62 HIGH INCOME OPPORTUNITY 2 (NMD) --------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 9.13 .92 1.79 N/A N/A 2.71 2008(c) 14.33 .89 (5.27) N/A N/A (4.38) ===================================================================================================================== LESS DISTRIBUTIONS ------------------------------------- NET OFFERING INVESTMENT CAPITAL COSTS AND ENDING INCOME TO GAINS TO PREFERRED COMMON COMMON COMMON SHARE SHARE ENDING SHARE- SHARE- UNDERWRITING NET ASSET MARKET HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE -------------------------------------------------------------------------------------------------------------- HIGH INCOME OPPORTUNITY (NMZ) -------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ (1.04) $ -- $ (1.04) $ --*** $ 11.18 $ 11.92 2008 (.98) (.09) (1.07) --*** 9.63 11.02 2007 (.98) --*** (.98) -- 15.36 15.82 2006 (1.04) -- (1.04) .01 16.00 17.25 2005 (1.07) (.06) (1.13) -- 15.36 15.99 HIGH INCOME OPPORTUNITY 2 (NMD) -------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 (.96) -- (.96) -- 10.88 11.39 2008(c) (.79) -- (.79) (.03) 9.13 10.04 ==============================================================================================================
BORROWINGS AT PREFERRED SHARES AT END OF PERIOD END OF PERIOD ------------------------------------- ------------------------ AGGREGATE LIQUIDATION AGGREGATE AMOUNT AND MARKET ASSET AMOUNT ASSET OUTSTANDING VALUE COVERAGE OUTSTANDING COVERAGE (000) PER SHARE PER SHARE (000) PER $1,000 ------------------------------------------------------------------------------------------------- HIGH INCOME OPPORTUNITY (NMZ) ------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ 95,000 $ 25,000 $ 101,043 $ -- $ -- 2008 155,000 25,000 62,117 -- -- 2007 155,000 25,000 83,304 -- -- 2006 155,000 25,000 85,113 -- -- 2005 155,000 25,000 82,585 -- -- HIGH INCOME OPPORTUNITY 2 (NMD) ------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 N/A N/A N/A 35,000 5,982 2008(c) N/A N/A N/A 40,000 4,619 =================================================================================================
110 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)(b) INTEREST++ INCOME++ ---------------------------------------------------------------------------------------------------------------------- HIGH INCOME OPPORTUNITY (NMZ) ---------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 20.00% 30.90% $ 288,963 1.53% 1.50% 10.88% 2008 (24.77) (32.63) 230,123 1.56 1.36 8.95 2007 (2.68) 2.14 361,484 1.50 1.28 7.31 2006 14.79 11.34 372,700 1.21 1.21 7.31 2005 14.35 11.20 357,025 1.20 1.20 7.54 HIGH INCOME OPPORTUNITY 2 (NMD) ---------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 25.45 32.43 174,353 1.50 1.24 10.07 2008(c) (28.82) (32.15) 144,745 1.19**** .89**** 6.69**** ====================================================================================================================== RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT** -------------------------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a)(b) INTEREST++ INCOME++ RATE ------------------------------------------------------------------------------------------- HIGH INCOME OPPORTUNITY (NMZ) ------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 1.17% 1.14% 11.24% 28% 2008 1.08 .88 9.43 23 2007 1.05 .83 7.76 12 2006 .75 .75 7.77 9 2005 .74 .74 8.00 6 HIGH INCOME OPPORTUNITY 2 (NMD) ------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 1.50 1.24 10.07 45 2008(c) .82**** .89**** 7.06**** 22 ===========================================================================================
N/A High Income Opportunity 2 (NMD) did not issue Preferred shares during the period November 15, 2007 (commencement of operations) through October 31, 2009. * 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 the 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. *** Rounds to less than $.01 per share. **** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Preferred shares and Borrowings, where applicable. (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. (b) Each Ratio of Expenses Including Interest to Average Net Assets Applicable to Common Shares for High Income Opportunity 2 (NMD) includes the effect of the interest expense paid on Fund borrowings, as described in Footnote 9 - Borrowings as follows: Ratios of Borrowings Interest Expense to Average Net Assets Applicable to Common Shares -------------------------------------------------------------------------------- HIGH INCOME OPPORTUNITY 2 (NMD) -------------------------------------------------------------------------------- Year Ended 10/31: 2009 .26% 2008(c) .30**** ================================================================================ (c) For the period November 15, 2007 (commencement of operations) through October 31, 2008. See accompanying notes to financial statements. Nuveen Investments 111 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 AND OVERSEEN BY BOARD DIRECTORSHIPS & ADDRESS WITH THE FUNDS TERM(1) MEMBER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: o ROBERT P. BREMNER Private Investor and Management 8/22/40 Chairman of 1997 198 Consultant; Treasurer and Director, 333 W. Wacker Drive the Board Humanities Council of Washington D.C. Chicago, IL 60606 and Board Member o JACK B. EVANS President, The Hall-Perrine Foundation, 10/22/48 a private philanthropic corporation 333 W. Wacker Drive Board Member 1999 198 (since 1996); Director and Chairman, Chicago, IL 60606 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 2004) 333 W. Wacker Drive Board Member 2005 198 as Chairman, JPMorgan Fleming Asset Chicago, IL 60606 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 Partners 9/24/44 Ltd., a real estate investment company; 333 W. Wacker Drive Board Member 1997 198 formerly, Senior Partner and Chief Chicago, IL 60606 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.
112 Nuveen Investments
NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED AND OVERSEEN BY BOARD DIRECTORSHIPS & ADDRESS WITH THE FUNDS TERM(1) MEMBER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy 12/29/47 Donnelley Foundation (since 1994); prior 333 W. Wacker Drive Board Member 1997 198 thereto, Executive Director, Great Lakes Chicago, IL 60606 Protection Fund (from 1990 to 1994). o CAROLE E. STONE Director, Chicago Board Options Exchange 6/28/47 (since 2006); Director, C2 Options 333 W. Wacker Drive Board Member 2007 198 Exchange, Incorporated (since 2009); Chicago, IL 60606 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 2008); 333 W. Wacker Drive Board Member 2008 198 Managing Partner, Musso Capital Chicago, IL 60606 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 113 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 Investments, Chicago, IL 60606 Officer 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 of Chicago, IL 60606 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 2007); 333 W. Wacker Drive Vice President 2009 198 President of Nuveen Investments Chicago, IL 60606 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 (1993-2004) 333 W. Wacker Drive Vice President 2007 123 of Nuveen Investments, LLC. Chicago, IL 60606 o NIZIDA ARRIAGA Vice President (since 2007) of Nuveen 6/1/68 Investments, LLC; previously, Portfolio 333 W. Wacker Drive Vice President 2009 198 Manager, Allstate Investments, LLC Chicago, IL 60606 (1996-2006); Chartered Financial Analyst. o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen 2/3/66 Investments, LLC.; Vice President of 333 W. Wacker Drive Vice President 2000 198 Nuveen Asset Management (since 2005). Chicago, IL 60606 and Assistant Secretary 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 Asset Chicago, IL 60606 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 Nuveen 10/24/45 Investments, LLC; Managing Director 333 W. Wacker Drive Vice President 1998 198 (since 2005) of Nuveen Asset Management; Chicago, IL 60606 Managing Director (2004-2005), of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3)
114 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 Funds 5/31/54 Controller (since 1998) of Nuveen 333 W. Wacker Drive Vice President 1998 198 Investments, LLC; Vice President (since Chicago, IL 60606 and Controller 2005) of Nuveen Asset Management; Certified Public Accountant. o SCOTT S. GRACE Managing Director, Corporate Finance & 8/20/70 Development, Treasurer (since September 333 West Wacker Drive Vice President 2009 198 2009) of Nuveen Investments, LLC, Chicago, IL 60606 and Treasurer 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 Fixed 5/7/69 Income (since 2008) of Nuveen Asset 333 W. Wacker Drive Vice President 2009 134 Management; previously, Chairman, Chicago, IL 60606 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), Vice 2/24/70 President (2006-2008) formerly, 333 W. Wacker Drive Chief Compliance 2003 198 Assistant Vice President and Assistant Chicago, IL 60606 Officer and General Counsel (2003-2006) of Nuveen Vice President 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) of 333 W. Wacker Drive Vice President 2000 198 Nuveen Investments, LLC; Vice President Chicago, IL 60606 (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 and 7/27/51 Assistant General Counsel of Nuveen 333 W. Wacker Drive Vice President 1988 198 Investments, LLC; Vice President (since Chicago, IL 60606 and Assistant 2005) and Assistant Secretary of Nuveen Secretary 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 formerly, Vice President (2007-2008), 333 W. Wacker Drive Vice President 2007 198 Nuveen Investments, LLC; Managing Chicago, IL 60606 and Secretary 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 115 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 Managing 4/10/67 Director (since 2007), formerly, Vice 333 W. Wacker Drive Vice President 2007 134 President (2002-2007) of Nuveen Asset Chicago, IL 60606 Management and Managing Director (since 2007), formerly Vice President (2002-2007) Nuveen Investments, LLC; Chartered Financial Analyst. o GREGORY MINO Vice President of Nuveen Investments, 1/4/71 LLC (since 2008); previously, Director 333 W. Wacker Drive Vice President 2009 198 (2004-2007) and Executive Director Chicago, IL 60606 (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, LLC 8/1/71 Vice President 2008 198 (since 2008); Vice President and 333 W. Wacker Drive and Assistant 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 2007 198 Vice President, Nuveen Investments, LLC 7/3/62 and Assistant (since 2007); prior thereto, Partner, 333 W. Wacker Drive Secretary Deloitte & Touche USA LLP (2005-2007), Chicago, IL 60606 formerly, senior tax manager (2002-2005); Certified Public Accountant. o MARK L. WINGET Vice President 2008 198 Vice President, Nuveen Investments, LLC 12/21/68 and Assistant (since 2008); Vice President and 333 W. Wacker Drive Secretary Assistant Secretary, Nuveen Asset Chicago, IL 60606 Management (since 2008); prior thereto, Counsel, Vedder Price P.C. (1997-2007).
(1) For High Income Opportunity (NMZ), 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 NMZ 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 High Income Opportunity 2 (NMD), Board Members serve three year terms. The Board of Trustees for NMD 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. For Investment Quality (NQM), Select Quality (NQS), Quality Income (NQU) and Premier Income (NPF), 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. 116 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 117 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 through a 118 Nuveen Investments 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 119 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, except as noted. With respect to the Nuveen Municipal High Income Opportunity Fund and the Nuveen Municipal High Income Opportunity Fund 2, based on their review and factoring in the severity of market turmoil in 2008, the Independent Board Members were satisfied with the steps taken to address performance issues during extraordinary times. 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 120 Nuveen Investments 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 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 121 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. 122 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 123 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 124 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 125 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 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 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 126 Nuveen Investments bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. 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 127 Notes 128 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 PREFERRED SHARES SHARES FUND REPURCHASED REDEEMED NQM -- 750 NQS -- 652 NQU -- 1,180 NPF 15,700 -- NMZ -- 1,800 NMD -- -- Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report. Nuveen Investments 129 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-C-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 Investment Quality Municipal 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 $ 31,342 $ 0 $ 0 $ 3,400 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------ October 31, 2008 $ 32,696 $ 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 Johnathan Wilhelm Nuveen Investment Quality Municipal 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 ----------------------------------------- ------------------------------------------------ -------------- ----------------- Johnathan Wilhelm Registered Investment Company 5 $1.9 billion Other Pooled Investment Vehicles 0 $0 Other Accounts 7 $.8 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 EQUITY IN THE REMAINDER OF SECURITIES NUVEEN FUNDS MANAGED BENEFICIALLY BY NAM'S MUNICIPAL NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM -------------------------- ---------------------------------------------- ----------------- ---------------------- Johnathan Wilhelm Nuveen Investment Quality Municipal Fund, Inc $0 $10,001-$50,000 -------------------------- ---------------------------------------------- ----------------- ----------------------
PORTFOLIO MANAGER BIO: John Wilhelm joined Nuveen Investments in 1999 and currently serves as Vice President of Nuveen Investments. He has served as co-portfolio manager of the Fund since the Fund's inception. Mr. Wilhelm has over eighteen years of industry experience. From 1999 to 2006, Mr. Wilhelm headed the research activities for industrial development bonds, utilities and real estate-backed financings. Prior to joining NAM in 1999, Mr. Wilhelm was Senior Credit Analyst in the Van Kampen Senior Loan Group. He received his B.S. in Business from Miami University of Ohio and his J.D. from DePaul University. He manages investments for six 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 Investment Quality Municipal 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 -------------------------------------------------------------------